VTM commissions AI-driven automated facility in Tamil Nadu

As India industry grapples with a decadal low in cotton yields, VTM is shifting to technology-intensive manufacturing by commissioning a state-of-the-art, AI-driven automated facility in Virudhunagar, Tamil Nadu Specifically engineered for high-end textiles and complex weaves, this facility is an outcome of a MoU signed by the company with the Tamil Nadu Government, committing a Rs 50 crore investment over two years. By integrating artificial intelligence into the weaving process, VTM aims to mitigate the spread squeeze currently impacting traditional spinners, focusing instead on high-margin specialty fabrics like Dobby and Jacquard designs.

The new facility arrives at a critical juncture; while VTM reported a robust 35.3 per cent revenue growth to Rs 989.70 million in Q2 FY26, net profits faced a sharp 76 per cent contraction due to rising input costs. The automation project is designed to address this efficiency gap, leveraging real-time data analytics to reduce waste and optimize machine uptime. With 90 per cent of its production already destined for global markets, the company is positioning itself to capture premium orders from quality-conscious international brands. This technological leap provides a necessary buffer against domestic fiber volatility, allowing VTM to maintain its projected growth trajectory even as broader sector sentiment remains cautious.

A part of the heritage Thiagarajar Group, VTM was established in 1946. The company specializes in high-count grey fabrics and home textiles. Based in Tamil Nadu, it caters primarily to European and US export markets. The company is currently scaling its garmenting and AI-integrated weaving divisions to improve long-term profitability margins.