Telangana weaving a new future in textiles

The state’s compelling case for investment stems from its deep-rooted heritage in textile production, a prime central location, and a supportive environment for industries. These factors are complemented by progressive government initiatives and a skilled labour force that aligns well with the sector’s needs.

“Telangana’s biggest strength lies in its proactive governance, ease of doing business, and a strong commitment to industrial growth. The TS-iPASS single-window clearance system is among the most efficient in India, making it easier for businesses to set up and expand operations. Additionally, the state is India’s second-largest producer of cotton, offering a natural supply chain advantage to spinning and downstream textile industries. Backed by this, Telangana has adopted a visionary approach—not just to grow cotton, but to process and add value to it within the state,” highlighted Gautam Ganeriwal, executive director at Sitaram Spinners, speaking to Fibre2Fashion.

This strategic vision has already attracted several high-profile investments. Major players such as Welspun, Surya Latha Spinning Mill, Sitaram Spinners, Kitex, Youngone, and Ganesha Ecosphere have all committed to establishing or expanding operations in Telangana.

Echoing Ganeriwal, Dharani Kanth Koganti, director of Kakatiya Mega Textile Park (KMTP), shared with Fibre2Fashion: “Telangana’s greatest strength lies in its proactive governance and unwavering focus on ease of doing business. The state’s policies are crafted with active engagement from industry stakeholders, ensuring they are both practical and forward-looking. This commitment to industry-centric governance has led to the creation of the Kakatiya Mega Textile Park (KMTP) in Warangal—a strategically located, fully integrated hub dedicated to the textile industry.”

Spread across 1,527 acres, the Kakatiya Mega Textile Park is envisioned as a fully integrated facility, encompassing the entire textile value chain—from spinning and weaving to processing and garmenting. Developed on a vertically integrated model, the park aims to provide a comprehensive and globally competitive manufacturing ecosystem for the textile and apparel industry.

One of the largest textile parks in India, with the potential to generate over 1,00,000 jobs, KMTP has attracted major industry players, including:

• Ganesha Ecosphere – which has already invested ₹950 crore, with an additional ₹112 crore planned for expansions.
• Kitex Garments – the world’s second-largest manufacturer of kidswear, is establishing a fully vertically integrated facility, has commenced partial operations, and expected to employ 12,000–15,000 people over the next few years.
• Youngone Corporation – a leading Korea-based manufacturer, has commenced partial production, and is on track for full-scale commercial operations by early 2026.

These investments from players like Kitex, Youngone and the like point to the growing confidence in Telangana’s textile ecosystem.

The state’s textile industry offers a vertically integrated framework—from cotton cultivation to spinning, weaving, and apparel manufacturing—providing efficiency and scalability for investors. The natural availability of cotton, especially in northern districts such as Warangal and Adilabad, offers a stable raw material base. Moreover, the state is home to a burgeoning skilled and semi-skilled workforce, including many rural women, who are especially suited for labour-intensive segments like spinning and garment production.

“To ensure a steady supply of skilled human resources, dedicated training centres have been established in the vicinity of the KMTP,” shared the director of the mega textile park, adding, “Additionally, essential worker-centric infrastructure—such as housing, healthcare, and education amenities—is being developed within the KMTP premises to support the anticipated influx of a large workforce.”

Telangana’s geographic advantage is another key factor in its rapid growth. Located at the heart of India, the state enjoys logistical ease, offering ready access to major southern markets and the urban hub of Hyderabad—a city of over 10 million people with a fast-expanding consumer base.

“Logistically, connectivity through NH corridors, proximity to major ports via Hyderabad and Warangal, and the planned logistics parks add strength to Telangana’s case,” Ganeriwal noted. These logistical assets are further enhanced by the government’s focus on developing infrastructure like the proposed regional ring road, the upcoming Warangal airport, and major projects such as Pharma City and Future City.

At the core of Telangana’s textile ambitions are robust infrastructural initiatives and policy frameworks geared toward the future. The state has placed substantial emphasis on integrated textile parks, aligning with the “Farm to Fibre; Fibre to Factory; Factory to Fashion; Fashion to Foreign” concept.

This comprehensive vision is materialised in the Kakatiya Mega Textile Park (KMTP), a cornerstone of Telangana’s textile strategy.

“The Kakatiya Mega Textile Park (KMTP) is a flagship initiative, integrating backward and forward linkages across the value chain. Its plug-and-play model and cluster-based development can significantly reduce costs for MSMEs and large players alike,” said an industry insider, underscoring its role as a catalyst for inclusive growth.

Another key development is the Sircilla Apparel Park, which covers approximately 60 acres and has been designed to attract garment manufacturers with built-to-suit options and ready-to-operate infrastructure. It represents a complementary effort to KMTP and supports the broader textile strategy.

Telangana’s policy landscape is regarded as one of the most supportive in India. According to stakeholders, the government offers a combination of capital and operational subsidies, making investment highly attractive. These measures have already yielded positive results. What’s more, looking beyond manufacturing, Telangana is setting its sights on becoming a hub for textile design, branding, and intellectual property development. The government’s investments in skilling initiatives, digital platforms, and marketing infrastructure are enabling the state to transition from being merely a production centre to a creator of fashion and innovation.

The goal is not just to export, but to build globally recognised brands.

In line with global trends, Telangana is also promoting the development of technical textiles and advanced materials. These textiles, used in industries like automotive, healthcare, and construction, offer higher value and demand specialised capabilities. With the global market for such materials growing rapidly, Telangana is looking to attract investments in research, development, and innovation in this niche.

“Over the next few years, KMTP is set to be fully developed and will play a pivotal role in advancing the ‘Made in Telangana’ narrative. While the park already hosts leading anchor investors, ongoing efforts are focused on attracting a few more, with the broader ecosystem to be driven by Micro, Small, and Medium Enterprises (MSMEs) KMTP stands as a testament to Telangana’s commitment to creating globally benchmarked industrial infrastructure that promotes inclusive growth and employment,” held Koganti.

The state’s all-round approach—combining an integrated ecosystem, business-friendly policies, modern infrastructure, and market connectivity—makes Telangana a standout destination in the textile manufacturing landscape.

“Telangana is already hitting the right buttons. The government’s ongoing consultations with stakeholders and focus on refining the textile policy in response to ground realities are highly encouraging. The state’s power surplus is a strategic advantage, and if it enables open access to solar power, the resulting cost reduction can make Telangana’s textiles even more globally competitive—particularly in energy-intensive processes like spinning and processing,” opined Ganeriwal.

He also noted that expanding capacities in weaving, processing, and garmenting—along with incentives for innovation in recycled fibres, manmade fibres (MMF), and value-added fabrics—would complete the value chain and unlock greater potential.

“In short, the roadmap is clear; with sustained execution and continued collaboration, Telangana is poised to lead India’s textile future,” held the executive director of Sitaram Spinners to wind up on a positive note.

ALCHEMPro News Desk (DR)