Building BusinessServices

Section 21

Erode, Bhavani and Chennimalai

Erode, Tamil Nadu · Manufacturing

Handloom and powerloom cloth, Bhavani jamakkalam rugs and Chennimalai bedsheets

sourced figures
4
main products
7
businesses to start
6

The story

Erode district has long been a weaving belt, with cooperative handloom societies in Chennimalai, Bhavani and nearby towns. The Bhavani jamakkalam, a thick striped cotton rug, began with the Jangamar weaving community and became a GI product in 2005. Powerlooms later spread across the district and Erode grew into a wholesale textile market. The state's free dhoti-and-saree scheme and school uniform orders keep many societies busy.

In numbers

  1. Erode district has 191 handloom weavers' cooperative societies and 57 powerloom weavers' cooperative societies.

    Handlooms — Erode district administration · 2026
  2. More than 50,000 powerloom weavers and ancillary workers work in the district; 11,893 powerloom weavers received subsidised electricity in 2025-26.

    Handlooms — Erode district administration · 2026
  3. Bhavani Jamakkalam is a registered GI (application 16, certificate 9).

    GI Registry — Bhavani Jamakkalam, application 16
  4. A Weaving Cluster in Erode and a Coir and Coir Products Cluster in Erode are listed as completed MSE-CDP common facility centres.

    Completed Common Facility Centres under MSE-CDP (as on 22 Mar 2024), Office of DC-MSME · 2024

GI tag

Ways in for a newcomer

  • Contract weaving for uniform and government-scheme cloth
  • Online retail of Bhavani jamakkalam and Chennimalai bedsheets
  • Yarn dyeing and sizing services for weavers
  • Wholesale trading in Erode textile market

Problems the cluster faces

  • Powerloom copies sold as handloom GI goods
  • Ageing handloom weavers and few young entrants
  • Thin margins and dependence on government orders
  • Yarn price swings

Businesses to start here

Bedsheet Weaving Unit (Power Loom) →Handloom Gamcha (Loin Cloth) →Cotton Yarn Dyeing (Hank and Package Dyeing) →Yarn Twisting (Doubling) Job Work →Towel Manufacturing →Handloom and Handicrafts Retail Shop →

Sources (3)
  1. Handlooms — Erode district administration
  2. GI Registry — Bhavani Jamakkalam
  3. Completed Common Facility Centres under MSE-CDP (as on 22 Mar 2024), Office of DC-MSME