Thoothukudi’s furniture park remains largely unoccupied three years after its launch

Of the three firms that have opted to set up shop at the furniture park, only one has begun operations.
| Photo Credit: N. RAJESH

Three years since the launch of India’s first International Furniture Park in Thoothukudi, only three companies have opted to set up their factories at the site. Investors have cited infrastructure challenges and the absence of specific services for the lukewarm response.

The park spans around 1,150 acres within the SIPCOT in Meelavittan area of Thoothukudi. During the foundation stone laying ceremony, the government had said the site was expected to be fully operational in eight to 10 years, attracting an investment of up to ₹4,500 crore and providing employment to an estimated 3.5 lakh people.

Currently, three private firms and the Tamil Nadu Industrial Development Corporation (TIDCO) have opted to use the site. Together, the three private firms have acquired only around 126 acres of the total area of the park. TIDCO has acquired around 10 acres for a trade facilitation and commercial centre.

Among the three units, Crest Lashing and Packaging Private Limited, a Chennai-based firm specialising in wooden boxed furniture, interior panels, and wooden pallets, has begun production, while the others are under construction.

The slow pace of the park’s development has raised concern among the investors. At the time of announcement, the park’s first phase was expected to be fully operational in five years, with an investment of ₹1,500 crore to ₹1,800 crore and generating employment to around 1.5 lakh people.

M.V. Venaktesan, managing director of Crest Lashing and Packaging Private Limited, acknowledged that the site needed more promotional activity from the government to reach a large number of potential investors. “Since we were the first to begin production, the process to acquire electricity and water connections was tedious. Till now, SIPCOT has not provided a drainage connection,” he said.

He added that the government had already invested a large amount of money for roads and other facilities within the SIPCOT, but there had been a delay in promoting the site to support its full-scale development.

Prasad, a furniture importer from Thoothukudi, said: “We import more than we export. So, it is not feasible in the long run for a furniture establishment [to set up a unit] due to cost, craftsmanship, and other challenges.” He added that there was a lot of initial excitement around the project, “but that enthusiasm has faded over time.”

P. Kathirvel, national organising secretary of the Indian National Trade Union Congress (INTUC), said that since the time of announcement the furniture park had not seen any major development. It was promised that the park would create mass employment opportunities, but currently only small firms, with 100 to 150 workers, are operating on the site.

“Many furniture items are imported from China, Indonesia, and other countries, where the price of the products are comparatively less than of those manufactured in Tamil Nadu,” he added.

Mr. Kathirvel said the successful operation of the furniture park in Thoothukudi remained an uncertainty, as the site lacked many of the essential facilities needed for its development.

‘Steps being taken’

However, addressing these concerns, an official from SIPCOT, Thoothukudi, said work was under way to enhance electricity and water facilities.

He confirmed that 12 acres had been allocated to the Tamil Nadu Generation and Distribution Corporation to set up a substation and said the water facility would be completed within a few months. The official added that the government had also been taking various measures to promote the furniture park.