The Hindu Business Line : Private hosiery park planned in Tirupur

JS Promoters, the decade-and-half-old real estate-cum-construction company, has diversified into industrial construction by launching a Rs 14-crore private industrial estate project in the Thirumurugan Poondi area in the peripheral Tirupur, 10 km off the Tirupur railway station.

The proposed JS Hosiery Park, to be set on a four-acre site, will house 23 individual industrial sheds - each with a minimum built-up area of 6,000 sq ft or above depending on the needs of the prospective buyer and the park is intended to be used for dry production activities like garmenting, merchandising or for administrative functions. The work-sheds will be designed to take the `line-in' production system adopted lately by the local garmenting units. The promoters will provide all basic infrastructure such as roads, common conference hall, restaurant and security, besides running the campus services.

Each shed, estimated to cost between Rs 50 and70 lakh, will come up on a minimum 10 cent plot (can go up to 20 cents) and will have ground plus two floors.

"The first ground breaking for building the industrial shed will start next month and we intend to complete all the 23 sheds within the next one year," said Mr K.J. Prabhakaran, Chief Executive of JS Promoters.

The promoters of the park are targeting mid-sized garment companies which are job-working for major export houses or merchandising companies as, according to Mr Prabhakaran, most of these units need to expand their production facilities as per their buyers' specifications.

These supplier units, currently operating from smaller worksheds located inside the Tirupur town, are finding it difficult to expand and are looking for relocating their operations to places that offer easy access to workers and is close by to centres of business activities.

Enquiries from new entrants promoting garment units and pure investors, anticipating a surge in the lease income from commercial construction because of the boom in the knitwear sector, were the other factors which spurred the company to set up the park.

The average rentals out of commercial building in Tirupur at present work out around Rs 6 per sq ft with an assured 10 per cent annual appreciation, said Mr Prabhakaran.

JS Promoters says that the hosiery park project being its pilot industrial construction, the company is also toying with the idea of extending business supportive services for their industrial clients by way of helping them out in obtaining finances for machinery/working capital as well as arranging industrial/management training or technical assistance.

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