TN prepares to set up India’s maiden furniture hub in Thoothukudi

A few years from now, furniture made of leather, timber and metal, manufactured in Tamil Nadu’s Thoothukudi district, will be exported and sold in the international market. The TN government is in the process of setting up an international furniture park in Thoothukudi district with an aim to boost the state’s competitiveness in the global furniture market and create more employment opportunities back home.

On Monday, Chief Minister MK Stalin laid the foundation stone of the furniture park, which is set to be built on 1,156 acres of land at Meelavittan and South Veerapandiyapuram villages in Thoothukudi.

The global furniture industry is estimated to be $600 billion. Even though India is a minor player, it is said to have the potential to be among the top three global players after China and Vietnam. It is to grab the top position that the Tamil Nadu government had earlier announced that the park would be established at an outlay of ₹1,000 crore to attract investments to the tune of ₹4,500 crore and to create employment opportunities for 3.50 lakh people.

Explaining that the global furniture market is estimated to grow to $750-$800 billion before 2025, Stalin said the park, which will be established on par with international standards, would increase the competitiveness of Tamil Nadu in the global market.

Job opportunities

The park is aimed to create job opportunities, to uplift the livelihood of the people in southern districts and to improve the state’s economy, he said. An official from SIPCOT industrial park added that by establishing the park, the government aims to create better ecosystem and infrastructure for the industries in the district and to enter the global furniture market.

Stating that multiple factors have been considered before choosing Thoothukudi as the plant site, the official said the district is India’s third largest timber importer and has been importing logs from Myanmar, Australia, New Zealand and the African countries via VOC port and its logistic connectivity is better than other districts. “We aim to tap the potential of both foreign and domestic manufacturers,” he added.

Later in the day, the Tamil Nadu government signed a Memorandum of Understanding with eight companies including those in European countries and Tirunelveli and Thoothukudi districts to invest and set up their units in the park. “The companies would be investing ₹2,845 crore and creating employment opportunities for 11,450 people,” said a government source.

Companies making a beeline

According to the source, the companies – Hettich India Private Limited (to produce furniture), Deceuninck Profiles (to produce windows and doors), Manor and Mews (to produce furniture), New Century Sofa India (to produce leather furniture), Vikas Exports and Dileep Industries (to produce wooden crafts and handicrafts) and Marque Impex and Borotik (to produce furniture) – have signed a MoU with the state government.

“The first phase of the project is expected to be fully operational in another four to five years with an investment of ₹1,500 to ₹1,800 crore and it would provide employment opportunities to 1.1 to 1.5 lakh people. Similarly, the second phase of the project is expected to be fully operational in another eight to 10 years with an investment of ₹3,500 crore to ₹4,500 crore and it would provide employment opportunities to about 3 to 3.50 lakh people,” the source added.

“The park which would be set up about 13 km away from the port, would have a maximum of 100 furniture manufacturing units. In addition, it would have a common training centre to provide training on carpentering and steel furniture-making, marketing and exporting; a furniture testing centre to test and certify the calibre of the furniture manufactured here and a sewage treatment plant. It would also have a residential complex to house the employees,” he added.

Stalin said the park would create a better ecosystem to meet about 70 to 80 per cent of the raw material demand and reduce the production cost.

Calling it a “golden opportunity” for industrialists, K Nehru Prakash, president of Thoothukudi district’s Tiny and Small Scale Industries Association said, once the furniture manufacturing units start to function in the park, the demand for the furniture auxiliary parts would increase which would pave path for establishing more industries. “At present only a handful of furniture manufacturers are in the district. With the establishment of the park, availability of furniture, both at the domestic and global market would increase,” he added.

Explaining that the overall economy of the district would be improved, he said that business at port, logistics, turnover of the industries producing furniture parts and tax paid to the government would multi-fold once the park starts functioning.

“With the establishment of a training centre within the park, there would not be any manpower shortage,” he added.