Operations Management Case Study

Cleaner Apparel Value Chains- Tirupur Pilot under the UNIDO‑GEF India Initiative

OR

Abstract:
When Dr. Anita Verma, UNIDO’s Project Coordinator for South Asia, visited Tirupur in 2023, she stood at the crossroads of India’s textile boom and its environmental burden. The case “Cleaner Apparel Value Chains, Tirupur Pilot under the UNIDO-GEF India Initiative” explores this moment, focusing on a real United Nations Industrial Development Organization (UNIDO) and Global Environment Facility (GEF) project designed to eliminate hazardous chemicals and promote sustainable production in India’s apparel sector. To be Implemented by 2029, the initiative spans eight major clusters, including Tirupur, India’s knitwear capital, and involves about 320 pilot units nationwide. With an Environmental and Social Management Plan (ESMP) budget of USD 300,000 and a total GEF contribution of around USD 7 million, the project blends technical support, policy engagement, and cleaner technology demonstrations to build circular value chains. Tirupur’s environmental challenges, extensive chemical use, high water and energy intensity, and pollution, frame the project’s ambition to reduce 18,375 tons of harmful chemicals, cut 350,000 tCO₂-equivalent in direct emissions, and improve the livelihoods of 40,000 direct and 80,000 indirect beneficiaries. This case invites students to analyze UNIDO’s Social Cost Benefit Assessment (SCBA) approach and explore how global sustainability frameworks can create shared value in industrial clusters.

Pedagogical Objectives:

This case study would help the students to understand:

• Describe the goals, scope, and structure of the UNIDO-GEF project for sustainable textile production in India
• Explain the concept of social cost–benefit analysis (SCBA) and how it applies to industrial development projects.
• Analyze how cleaner production and circular economy principles generate private and social benefits in industrial clusters.
• Outline the UNIDO approach to project appraisal, particularly its stages for assessing economic, social, and environmental benefits.

Keywords : Sustainable Industrial Development; Technical Cooperation; Capacity Building; Environmental Sustainability,SCBA; Profitability; Shadow Pricing; Savings and Investment; Income Distribution; Social & Economic Values; UNIDO; GEF

Contents:

Introduction

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