SIHMA Achievements
Past Achievements In a Nut Shell,
- In the late 50s loans from TIIC were arranged for the hosiery industry.
- In the early 60s Flat-lock machines were imported, overcoming the restrictions.
- TIIC increased the loan amount by 8.5 times due to SIHMA representations.
- In the late 60s, SIHMA played an influential role in getting SBI loans to SSI units.
- At the request of SIHMA, SITRA arranged training programs in the late 60s,
- From 60s till date, SIHMA representation has made railway authorities to stop trains at Tirupur and made facilities for the passenger and goods movements.
- Modernisation drive was initiated by SIHMA during mid 70s.
- In 80s during scarcity of yarn, SIHMA negotiated with the Government for quota, got the yarn and distributed to the member manufacturers.
- In 80s special import license was obtained by SIHMA for import of special steel to make knitting needles in India. By getting this license, the needle manufacturers were able to supply the needles in required quantity.
- In the late 90s, training programs were conducted for ISO 9000 and women entrepreneurs.
- In 90s sales tax concessions were obtained.
- To compete with other state entrepreneurs, a trade promotional subsidy for manufacturers who could not get ‘C’ form was obtained.
- In 90s and the last decade excise concession were obtained.
- In the last decade, by representing to the ESI authorities the anomalies in the ESI rule pertaining to job workers were removed.
- Six hospitals in Tirupur were made referral hospitals for getting the ESI medical benefits by ESI through the representations of SIHMA
- A multi speciality ESI hospital is sanctioned for Tirupur at the insistence of SIHMA.
- Another major achievement of SIHMA was the periodic wage agreement for the labour in the knitting industry with the labour unions since early 70s till date.
- During corona period we raised a point to Central Govt / ESI – As this is a health issue, Govt ordered for lock down We requested to sanction leave / half pay to the eligible employees during the Corona Lock down period.
- The Central Govt ordered on 17.06.2021 for the above. This point raised by SIHMA benefited all employees (ESI) throughout India.
- Special postal stamp released for “ MOHANJI ” the past President of SIHMA.
- On our continuous representation foundation stone for ESI Hospital at TIRUPUR laid on 10.02.2019.
- ESI Hospital new building opened by our Hon’ble Prime Minister Thiru. Narendira Modiji through Video conference on 25.02.2024.
- Due to our follow up – A Samadhan Scheme for CST / VAT etc., announced by Tamil Nadu Govt by our Hon’ble Chief Minister Thiru. M.K. STALIN from 16.10.2023 to 31.03.2024.
Bureau Of Indian Standards (B.I.S.):
- Meetings are held at periodical intervals at SIHMA premises to fix I.S.I. standards for hosiery articles.
- Commercial Tax Department conducts computerization training and other meeting with the industry at SIHMA premises. Labour welfare board conducts its training meetings at SIHMA premises.
- E.S.I. and E.P.F. meetings are held in SIHMA for the benefit of hosiery factory workers.
Assistance In Raw Material Procurements:
- The Association does not rest with the mere achievements of recognition of hosiery industry from Government and other bodies but go all out to help the industry in times of shortage in supply of factors of production. One such instance is the import of knitting machine needles form abroad in 1960 when the industry was facing acute shortage in supply of needles. The Association took up the challenge and imported needles from abroad the supplied them to the member hosiery units.
- The other instance was the supply of yarn. When the industry faced acute shortage of yarn (an essential raw materials) to keep the wheels of the industry moving, the matter was taken up with the Government of India and the Association got a quota allotment of yarn, which in turn was distributed to the hosiery units Judiciously. This was in 1966-67 when the Textile Control order was in force.
Donations and Charities:
- SIHMA had always donated freely for social causes like Tsunami Relief, Flood Relief, Earthquake Relief and funds for construction of two electric crematoriums in Tirupur as also various other welfare schemes as envisaged in the Byelaw of the Association.
- The Association is the guardian angel of small-scale hosiery manufacturers and rendering yeoman service to the hosiery industry and entrepreneurs for the last nearly sixty years.
- Rs.15,00,000/- donated through DEEPAM FOUNDATION for the Bridge across Noyyal river at Rayapuram / SBI Colony on 05.03.2019.
- Nov / 2018 " கஜா புயல் " நிவாரணத்துக்காக பின்னலாடைகள் வழங்கப்பட்டது
- Kerala Flood: Dress materials donated and handed over in person on 29.08.2018.
- 20.05.2021 – Corona relief Fund Rs.15,00,000/- handed over to Hon’ble Tamilnadu Chief Minister Thiru. M.K. STALIN.
- 26.05.2021 - Medical instruments materials donated to Tirupur Govt - Hospital for a value of Rs. 5,00,000/-.
- April / 2023 - Donation from SIHMA and with contribution of our members Rs. 25,00,000/- given to “ CANCER TREATMENT UNIT ” at Govt Hospital – Tirupur.
- 20.07.2023 - Rs.1,00,000/- Donation to “ TIRUPUR BANIAN BAZZAR “ at Khaderpet for the fire accident.
- 12.12.2023 – CHENNAI FLOOD“ -Relief materials to a tune of Rs.40,00,000/- given by our members donated in person to ROTARY CLUB – Chennai to reach the benefit to genuine affected people.
Present State Of The Industry:
- From a one unit entity in 1928, the industry has come a long way through the years and Tirupur today has made a rapid stride in the industrial development of Tamilnadu as well as India due to its phenomenal growth. The industry employs directly about three lakhs of workers and contributes over Rs.6000 crores of domestic sales and over Rs.12,000 crores of export earnings in foreign exchange.
-
-
There are now 4000 industrial units engaged in the manufacture of Hosiery products. Major items manufactured for local consumption and exports are vests, briefs, T-shirts, Sweat shirts, Track suits, Sports Wear, Ladies and Kids wear and all other requirements of the foreign buyer.
- The following are the other industries doing job work to knitting factories:
- Fabrication (Knitting Hosiery Cloth) - 750 Units
- Bleaching and dyeing units - 770 Units
- Steam Calendering - 250 Units
- Compacting - 300 Units
- Screen Printing - 350 Units
- Embroidering - 150 Units
- Carton Box Manufacturing - 70 Units
- Label Manufacturing - 120 Units
- Polythene Bag Manufacturing - 80 Units
- Khaja Button Units - 50 Units
Assistance To Industry In Times Of Distress:
- The Association does not remain silent when the hosiery small-scale entrepreneurs are in doldrums in the business operations. One such instance is of an export order to Uganda, involving few crores of rupees and got entangled due to the failure of the Indian Agent to get through the order, the Association stepped in and with the help of National Small Industries Corporation got through the deal and saved many units from heavy loss.
- The Association intervenes when goods are lost or exposed to fire or similar damages by the transporters the value due towards the consignments are realized from the operators and passed on to the entrepreneurs.
Yarn Price:
- The Association approaches Government and other forums as and when abnormal increase is made in the selling prices of hosiery yarn as also represented to stop export of cotton and give preference of domestic consumers.
Central Excise:
- It was a great achievement of the Association to repeatedly approach the Government of India for getting exemption from the levy of Central Excise during 1982-83, 1994-95, 2003-04 and 2010-2013. Had it not been for the untiring and strenuous efforts of the Association, the excise levy would have come to stay permanently, putting the industry to untold hardships and multifarious problems.
Machineries:
- The Association had been able to get machinery through the National Small Industries Corporation without the production of collateral securities on easy hire-purchase terms/leasing schemes. This was a great boon to the small entrepreneurs to expand their business and production.
Infra-structure Development:
- SIHMA’s another achievement is the acquisition of an office building for it from the Tamilnadu Small Industries Corporation Ltd., inside SIDCO along with 31.5 Cents of land at a cost of Rs.2.75 lakhs on 12th April 1989 from contribution of members. The building was constructed during the year 1927 and is 86 years old as on 2013.
- Subsequently a new building was constructed from Association funds at a total cost of Rs.50 lakhs with office rooms, Committee Meeting hall and an A.C. conference hall and the building was opened on 9th July 2003.
- Plans are ready to build a new building in place of the nearly a century old, building and the work is in progress.
Relationship With State Bank Of India:
- The Association maintains close liaison with S.B.I. to help the entrepreneurs to solve all financial problems. The Association is grateful to the State Bank of India for its help in promoting the hosiery small-scale industry and the industry owes its present state of development only to the keen interest evinced by the bank in the welfare and rapid expansion of the industry. SBI was the pioneer in extending financial help to the Tirupur Hosiery Industry and its present exalted position
Labour Relations:
- From the inception SIHMA is keeping good relationships with the labour unions and except one labolur strike during the year 1984 there had been no strikes in the industry.
- All disputes are settled over the table amicably and all labour unions are giving utmost co-operations in conciliation. There were no strikes or lock outs for the last nearly thirty years.
- From 1972 onwards, Sihma is negotiating with the major labour unions the structure of wages payable to workers once in four years and the same is got approved by the labour department under Sec.12(3) of the Industrial Disputes Act 1947. Minimum Wages Act was not so far made applicable to hosiery industry. Sihma is also fixing the tailoring charges payable to contract tailors and steam calendaring charges. Bonus to the workers are settled every year amicably.
Exemption For Hosiery Products From Sales Tax:
- Hosiery products were totally exempted from sales tax from 09.03.1997 to 30.11.2001 and subsequently revived when uniform tax was introduced. Now VAT is applicable for all sales within the State with benefits of input tax credit.
‘C’ Form Problems:
- Hosiery products were taxed at 1% for inter-state sales without ‘C’ forms. During 2002 the then N.D.A. Government introduced a condition that even if the tax is below 4% ‘C’ forms should be submitted. Failure will attract penal tax. This matter was represented to Government of Tamilnadu and Sihma took special interest to help the industry by getting Government orders for refunding the penal tax paid as industrial promotion incentive to give effect to the concession rate of 1%.
- The submission of ‘C’ forms were also made once in three months from 2005 onwards.
Consignment Sales – Section 6 A Of The C.S.T. Act 1956:
- When the commercial taxes department treated nearly 800 cases of consignment or branch transfers as interstate sales and issued notices for recovery of huge tax Sihma filed three Writ Petitions in the Madras High Court and finally all these cases were settled amicably without any problem to the members. The Commissioner of Commercial taxes issued instructions to the Assessing Officers to pass orders without any complaints of harassment.
Stage By Stage Accounts Of Hosiery Factory Exemption For Sihma Members:
- Ref: G.O.Ms.No.1779, Revenue, dated 10.09.1968, letter No.A1/4660/68 dated 26.09.1968 of the Secretary, Board of Revenue, Madras.
- Board of Revenue provisionally exempted the Sihma member factories from maintaining production accounts of each stage under Rule 26(14) of the Madras. General Sales tax Rules provided they maintain production accounts.
Merchant Exports – Section 5(3) Of The Central Sales Tax 1956:
- When original order/agreement of the buyers abroad was insisted from the Merchant Exporters, the Association filed a Writ Petition in the High Court, Madras and obtained favourable orders and safeguarded the members. Orders of Government were also obtained in this connection vide G.O.Ms.No.91, Commercial Taxes and Religious Endowments Department dated 20.03.1997.
Textile Cess:
- SIHMA took timely steps to get the orders for removing textile cess for hosiery garments.
Weights And Measures – Legal Metrology Act (Packaged Commodities) Rules 2011:
- SIHMA continues to appeal to the Government of India for exemption from the Act and Rules. In the meantime suitable instructions have been issued to all members as to how the boxes are to be maintained with the mandatory information printed in the boxes.
Associate Membership:
- SIHMA is an Associate Member in Federation of Hosiery Manufacturer’s Association, Kolkata, Indian Chamber of Commerce and Industry, Coimbatore, Tamilnadu Chamber of Commerce and Industry, Madurai, Tanstia, Chennai etc.,
SIHMA Bulletin Book:
- A monthly BULLETIN book is published by SIHMA for the welfare of the industry which is appreciated by various individuals and industrial Associations.
Meetings:
- Executive Committee meetings are held frequently. General Body and extra ordinary General Body meetings are held at periodical intervals.
Arbitration Council Of Tirupur:
- Arbitration Council of Tirupur is functioning in SIHMA comprising all Associations to settle disputes in the hosiery industry.
SIHMA Institute:
- In 1998, to overcome the effect of globalization, training programs were started under UNIDO’s Cluster Development Programs. This is continued with various development programs in association with the then SISI Department (Now known as MSME). Some of the important programs were ISO 9000 certification training programs and Women Entrepreneur Training Programs.
- An institute by the name of “SIHMA Institute of Fashion Designing and Apparel Training”, to improve the skills of the industry managers was started in the year 1999. Later this institute was expanded to train the students as junior level managerial staff for the knit garment industry. Till date, the institute has trained more than 3500 students. Now, Entrepreneur Training Division (SIHMA – ETD) has also started in SIHMA Institute, which will handle the various techno commercial issues in the globalised scenario.
Salient Points:
- SIHMA Office new building opened on 18.10.2015.
- GST - Introduced from 01.07.2017.
- As a last resort to save the hosiery industry “ Strike “ was conducted on 15.03.2021 ,26.11.2021 and 17,18.01.2022 and 16,17.05.2022. ( Yarn price and Electricity charges hike).
- Framed certificate issued to 87 LIFE MEMBERS of SIHMA.
- Lamination Certificate issued to all Annual Members of SIHMA.
- I.D Cards will be supplied for annual members from 01.04.2024.
- Dearness allowance “ D.A ( for Labours ) details published in our bulletin then and there.
- Wage revision agreement between Labours Unions and industrial Associations are arrived smoothly for a long time.
-
3 committees among E.C. Members formed for smooth administration on 10.02.2023.
1. Bulletin Committee
2. Representation To Govt – Office Committee
3. Building Maintenance Committee.
Grievances Yet To Be Solved :
- Separate Board for Hosiery / Garment Industry.
- Uniform Electricity Tariff for all Units connected to hosiery / Garments Manufacturing (Mainly the places where job work done without Power load ).
- Separate (APP) for Hosiery Industry.
- A System to be created for arriving exact turnover of domestic Manufacturers. Month wise / year wise.
- I.T Act 45B (h) on MSME- Postponement request pending.
General:
- SIHMA continues to strive to give its members the best services in the years to come as was done for the last nearly six decades.