SALEM: The Silver Anklet Factory Complex at Ariyagoundampatti in Salem, mooted as the long-awaited solution to the problems of the silver anklet manufacturing sector, remains completely vacant nearly 10 months after its virtual inauguration by Chief Minister MK Stalin. According to manufacturers, high unit costs, soaring silver prices and design-related shortcomings are the key reasons for the unoccupancy.
The three-storeyed complex, spread over 1.2 acres and developed by the Small Industries Development Corporation (SIDCO) at a cost of Rs 25.29 crore, comprises 102 units, with 34 units on each floor. SIDCO has fixed the unit cost at Rs 4,200 per sq ft, with unit sizes ranging from 613 sq ft to 1,034 sq ft, translating to prices of approximately Rs 25.7 lakh to Rs 43.4 lakh per unit. The project was announced by the state government in 2022 and inaugurated in March 2025.
Anklet manufacturers reel under rising material costs
However, only 18 applications have been received till date, with 20 units allotted on paper and the remaining 82 units unoccupied.
Manufacturers attribute the lack of occupancy not only to pricing but also to the design of the facility. The engineering wing did not adequately consult anklet manufacturers during the planning stage. Given that silver anklet production involves multiple specialised processes, including melting, moulding and polishing, the absence of customised layouts and trade-specific infrastructure has made the units unattractive for actual manufacturing use, they alleged.
C Sri Anandarajan, president of the Salem Kolusu Manufacturers Kaivinai Sangam, said, “The high unit cost has defeated the very purpose of bringing scattered small manufacturing units under one roof.” He added that the association had sought a reduction in prices along with government subsidies, especially since the industry is facing an unprecedented slowdown.
Salem is home to nearly 10,000 silver anklet units employing about 1.15 lakh people. Manufacturers said the sector is under severe strain due to rising raw material costs and shrinking orders. Silver prices, they pointed out, rose sharply by nearly 145% over the year, from around Rs 98,000 per kg in January 2025 to about Rs 2.5 lakh per kg by the end of December 2025. By January 2026, the prices had crossed Rs 3 lakh per kg, further worsening the crisis.
“With silver prices skyrocketing and orders drying up, many units functioned for barely 10 days in the last three months,” Anandarajan said, adding that daily-wage workers and small manufacturers were in no position to invest large sums in factory units.
When contacted, SIDCO officials said that discussions have been held with associations of silver anklet manufacturers to understand their concerns and improve occupancy at the complex. During these interactions, manufacturers conveyed that the unit prices were on the higher side and placed their demands before the authorities.
P Gunalan, branch manager, SIDCO (Salem), said that the concerns raised by the industry were being examined.