The proposed Virudhunagar facility will produce premium cotton jacquard fabrics for export markets, with an initial annual capacity of 3 million metres and plans to double production in the second phase.
Thiagarajar Mills Private Limited, Madurai, through its group company, has joined hands with Germany-based Euro Textiles GmbH & Co. KG to establish a new textile manufacturing venture in Virudhunagar, Tamil Nadu. The partnership, formalised through a Memorandum of Understanding (MoU), involves a proposed investment of ₹100 crore and aims to expand India’s presence in international fabric markets.
The project will focus on manufacturing premium 100% cotton jacquard fabrics and other value-added textile products for overseas customers. According to the announcement, commercial operations are expected to commence within eight months.
New Facility to Feature 48 Jacquard Air-Jet Looms
The planned manufacturing unit will incorporate 48 advanced air-jet looms fitted with Jacquard technology, along with modern warping and sizing equipment. This combination of machinery is intended to support the production of intricate woven patterns and high-quality cotton fabrics for customers in the international fashion and design sectors.
The facility is expected to produce 3 million metres of fabric annually during its initial phase. A subsequent expansion is planned to increase output to 6 million metres per year, enabling the business to scale production in response to market requirements.
Beyond conventional cotton fabrics, the partners are also considering opportunities in specialised textile segments. The second phase is expected to include investments in value-added technical textiles and niche patented fabrics aimed at emerging non-conventional applications.
Partnership Combines Manufacturing and Global Market Access
Thiagarajar Mills, established on 26 June 1935, has a long history in India’s textile sector. Its operations include cotton yarn, combed yarn, hosiery yarn and related textile products. The company’s manufacturing experience and technical capabilities are expected to support the development of the new facility.
Euro Textiles GmbH & Co. KG brings expertise in textile sourcing, trading and international business development. Its role in the partnership is expected to complement the Indian group’s production capabilities through market access, product development and strategies for reaching overseas customers.
The collaboration is designed to connect Indian textile manufacturing with international demand, creating a platform for developing differentiated cotton fabrics and expanding sales in export markets.
European Market Presents Export Potential
The proposed venture comes as Indian textile manufacturers explore opportunities to increase their share of the European market. Figures cited in the announcement place India’s fabric exports to the European Union at approximately USD 80 million, while the EU’s fabric imports totalled USD 2.38 billion in 2025.
The India–EU Free Trade Agreement, which has yet to be finalised and implemented, could provide additional opportunities for Indian fabric producers to access European customers. However, the extent of any benefits will depend on the agreement’s final terms and implementation.
For the new venture, investment in modern weaving equipment, specialised fabrics and consistent product quality will be central to competing in international markets. The combination of domestic manufacturing capabilities and a European business partner could also help align product development with overseas customer requirements.
Investment Expected to Support Southern Tamil Nadu
The project is expected to contribute to industrial activity in Virudhunagar and the wider southern Tamil Nadu region by creating employment opportunities and adding advanced textile manufacturing capacity.
With an initial planned output of 3 million metres annually and a second-phase target of 6 million metres, the venture will adopt a phased expansion strategy. Its focus on premium cotton jacquard fabrics, specialised textile products and export markets is intended to support the development of higher-value textile manufacturing in India.
The proposed ₹100-crore investment marks a new Indo-German collaboration in textile production, bringing together Indian manufacturing expertise and international market knowledge to pursue opportunities in the global fabric trade.