Madurai-based Thiagarajar Mills Private Ltd, through its group company, has signed a memorandum of understanding (MoU) with Germany’s Euro Textiles GmbH & Co. KG to establish a new textile manufacturing venture in Virudhunagar, Tamil Nadu, with a proposed investment of ₹100 crore.

The project aims to strengthen India’s export-oriented textile industry by introducing advanced manufacturing technology and expanding access to international markets.

The proposed facility will manufacture premium-quality 100% cotton jacquard fabrics and other value-added textile products for export markets. Commercial production is expected to begin within eight months.

The manufacturing unit will feature 48 advanced air-jet looms equipped with Jacquard technology, supported by modern warping and sizing facilities. In its first phase, the facility is expected to achieve an annual production capacity of 3 million metres of fabric. The second phase aims to double capacity to 6 million metres annually.

The expansion will also focus on value-added technical textiles and specialised patented fabrics, targeting emerging opportunities in non-conventional textile segments.

The investment comes as India seeks to strengthen its presence in global textile markets, particularly the European Union. According to the company statement, India’s fabric exports to the EU stood at approximately $80 million in 2025, while the EU’s fabric imports were valued at $2.38 billion.

The joint venture is expected to support advanced textile manufacturing, diversify export offerings and create opportunities for Indian producers to serve international markets with higher-value products.