Enhancing Profitability through Strengthening TDQ Triangle- a Case of Tirupur’s Hosiery Industry

Dr.M.Bina Celine Dorathy


One of the objectives of an exporter is to maximize profitability. He achieves this effortlessly in an assured market, but struggles as the market becomes increasingly competitive. Tirupur a small town in Taminadu, India, became a major exporter of hosiery products to most of the developed countries of the world after 1985. The industry suffered a set back when the Quantitative Restrictions (QR) on textile trade was totally phased out by the WTO in 2005. Tirupur’s exporters reaped hefty profits during the quota system as the value realization was high. They now complain of lower profitability after the quota removal as competition has increased and the market has shifted from a sellers market to that of a buyers market.  Exporters in Tirupur still prefer to stick on to buyer instructions for fear of rejection. They do not prefer to try new designs and patterns. At this juncture this paper emphasizes the significance of technology, design and quality in reducing costs in a competitive market. It also makes an attempt to review the upgradations happening at Tirupur in these three core areas to cope with the changing pattern of trade.

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