A. Overview of the Global Economy:
Global economic growth in 2025 is projected at 3.2%, following an estimated 3.1% in 2024, according to the latest global outlook. The upward revision to the 2024 forecast by 0.2 percentage points compared to earlier projections reflects stronger-than-anticipated resilience in the United States, as well as improved performance in several large emerging market and developing economies, aided by targeted fiscal support in China. However, the projected growth for 2024 25 remains below the historical average of 3.8% (2000 2019), primarily due to elevated interest rates, tapering fiscal stimulus, high sovereign debt burdens, and subdued productivity growth in several regions.
Global inflation trends are showing positive signs of moderation. Headline inflation is expected to fall from 5.2% in 2024 to 4.4% in 2025, driven by a combination of factors including declining commodity prices, easing supply chain disruptions, and the impact of tight monetary policies implemented by central banks worldwide. However, core inflation remains elevated in some economies, particularly those experiencing stronger domestic demand or currency depreciation.
From a textile industry perspective, global economic conditions have a direct influence on consumer spending, retail trends, and international trade flows. Slowing growth in advanced economies may affect demand for discretionary goods such as apparel, while softening inflation and commodity price corrections are likely to ease input cost pressures on textile manufacturers. Additionally, currency volatility and differential interest rate regimes across countries will continue to affect export competitiveness and capital flows within the sector.
Despite global challenges, the outlook for Indias textile exports remains moderately optimistic, supported by diversification of global supply chains, strategic bilateral trade agreements, and Indias growing role as a preferred manufacturing destination under the global "China Plus One" strategy. However, geopolitical risks, climate-related disruptions, and slowdown in key export markets remain key variables to watch in FY 2025 26.
B. Overview of the Indian Economy:
The global economy entered 2025 with mixed signals. While inflationary pressures have moderated compared to the previous years, uncertainty persists due to geopolitical tensions, fluctuating commodity prices, and uneven recovery across major economies. The anticipated global recession in 2023 did not fully materialize; however, 2024 saw muted growth across several advanced economies due to tightening financial conditions and cautious consumer sentiment. The United States has shown resilience in labor markets and a gradual recovery in consumer demand, while parts of Europe continue to face economic headwinds. Financial market volatility has declined, aided by easing concerns following past banking sector disruptions.
In the Indian context, the economy has shown remarkable resilience and continues to maintain its trajectory as the fastest-growing major economy. Indias Real GDP at Constant (2011 12) Prices is estimated at 172.90 lakh crore (US$ 2.07 trillion) for FY 2024 25, reflecting a robust growth rate of 7.6%, up from 7.0% in FY 2023 24. This sustained growth is supported by strong domestic consumption, ongoing policy reforms, infrastructure expansion, and a healthy performance in the services and manufacturing sectors.
India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships. Indias appeal as a destination for investments has grown stronger and more sustainable because of the current period of global unpredictability and volatility, and the record amounts of money raised by India-focused funds in 2022 are evidence of investor faith in the "Invest in India" narrative.
Indias status as an attractive investment destination is further solidified amid global volatility. Investor confidence remains high, with India-focused funds raising record inflows, and Indias growing prominence in global supply chains bolstering its appeal. The country now hosts 113 unicorn startups with a combined valuation exceeding US$ 350 billion, and the fintech sector is poised to generate the next wave of unicorns. Several tech IPOs are anticipated in FY 2025 26, further deepening the domestic capital market ecosystem.
Explaining the economic outlook factoring global rudiments, the slowdown in global growth and economic output coupled with increased uncertainty is likely to dampen global trade growth. Strong domestic demand amidst high commodity prices will raise Indias total import bill and contribute to unfavourable developments in the current account balance. These may be exacerbated by plateauing export growth on account of slackening global demand. Should the current account deficit widen further, the currency may come under depreciation pressure. Also, entrenched inflation may prolong the tightening cycle, and therefore, borrowing costs may stay higher for longer.
C. Indian Textile Industry:
Indias textile and apparel exports during the fiscal year 2024 25 stood at US $34.4 billion, registering a decline of 3% compared to US $35.58 billion in FY 2023 24.
Within the textile sector, the segment covering cotton yarn, fabrics, made-ups, and handloom products recorded a notable year-on-year increase in exports by $740 million in 2024 25 over the previous year. This growth was primarily driven by a surge in cotton yarn exports. As per data from the Niryat portal of the Union Ministry of Commerce and Industry, North America remained the leading destination for Indias textile exports at $11 billion, followed by Europe at $10 billion, and West Asia and North African countries at $4 billion.
The decentralized power looms, hosiery, and knitting sector form the largest component of the Indian textiles industry. Its close linkage to agriculture providing essential raw materials such as cotton and the nations ancient cultural and textile traditions, makes this sector distinct from others in the Indian economy. Indias textile industry has the capacity to produce a wide range of products catering to diverse market segments, both domestically and globally.
D. Outlook:
During the reporting period, We must focus more on offering new products meeting customer retail price points. We experienced an increase in sales volume, leading to a rise in revenue from this segment. The steady demand for quality yarn products in the domestic market contributed to our success. Further geographic presence will be increased, and new markets will be explored.
E. Industry structure and development:
The domestic apparel & textile industry in India contributes approx. 2.3 % to the countrys GDP, 13% to industrial production and 12% to the countrys total exports. India has a 4% share in global trade of textiles and apparel, maintaining its position as one of the key players globally.
India is one of the leading global producers of cotton and jute in the world. India is also the Second-largest producer of silk in the world and 95% of the worlds hand-woven fabric comes from India. Total textile exports are expected to reach $65 Bn by FY26 and is expected to grow at 10% CAGR from 2019-20 to reach $190 Bn by 2025-26.
The sector is the second-largest employment generator in India, directly employing over 45 million individuals and providing livelihoods to over 100 million people across allied industries including agriculture, logistics, and retail.
The industrys growth is being catalyzed by government-led initiatives such as PLI (Production-Linked Incentive) schemes, Mega Textile Parks, and a continued focus on technology adoption and sustainability. With a robust raw material base, skilled workforce, and policy support, Indias textile industry is well-positioned to enhance its global competitiveness in the coming years.
F. Opportunities and Threats:
Opportunities:
? The governments continued support through schemes such as the National Technical Textiles Mission (NTTM), 100% FDI in the textile sector, and SAMARTH Scheme for Capacity Building in the Textile Sector, is driving investment, skill enhancement, and innovation across the value chain. ? China plus one diversification policy will benefit Indian manufacturers. As global retailers are looking for an alternate supply base, India has greater appeal as an attractive option for manufacturing and exports of textiles and apparels. ? The growth of the technical textile market will create lucrative opportunities. ? he rapid growth of organized retail and e-commerce platforms is transforming buying behavior and enhancing market reach for textile and apparel products, particularly in Tier 2 and Tier 3 cities. ? Rising disposable income will stimulate domestic demand. ? The growing popularity of fast fashion products will contribute to the growth of the textile and apparel industry. ? Long-standing relationships with international brands, institutional buyers, and a skilled workforce provide Indian textile players with a strong foundation for sustained growth and operational stability.
Threats:
? Market Competition: The domestic yarn trading market remains highly competitive, with numerous established and emerging players competing for market share. This creates pricing pressure and may affect margins. The Company actively monitors competitor strategies and continuously innovates to maintain its competitive positioning. ? Raw Material Costs: Fluctuations in raw material prices can impact our profitability. We actively manage our procurement process and explore alternative suppliers to mitigate the risk of sudden price increases. ? Regulatory Changes: Any adverse changes in trade policies, tariffs, or regulatory frameworks both domestic and international may affect export competitiveness and supply chain dynamics. The Company remains agile by staying informed on regulatory developments and adjusting its operations accordingly. ? Economic Factors: Economic conditions, both domestically and internationally, can impact the demand for yarn products. We assess economic trends and adjust our production and pricing strategies to optimize performance. ? Labor Availability and Costs: The industry is labor-intensive, and availability of skilled labor, especially in manufacturing hubs, can become a constraint. Rising labor costs and increasing regulatory scrutiny on workplace practices may affect productivity and compliance overheads.
G. Segment-wise or Product-wise performance:
The Company is operating in only one segment i.e. Trading in textiles products. Therefore, there is no requirement of Segment wise reporting.
H. Future Outlook:
Looking ahead, we will focus on the following strategies to sustain growth and capitalize on emerging opportunities:
? Focus on analytics
? Global trade and geopolitical factors? Online Expansion ? Premiumisation and access to global brands ? Technological advancements? Further Growth of Private Brands ? Sustainability and eco-friendly practices
I. Risks and concerns:
Management recognizes the following principal risks that may influence decisions made by investors given their significant impact on business conditions as stated in the securities report, and among matters pertaining to accounting status, consolidated companies financial status and business performance, as well as cash flows. Our risk management system addresses the increasingly complex risks that we face in our day-to-day operations. The risk management system conducts risk analysis of economic and social changes and implements preventive measures that are best suit for the Company.
J. Internal control systems and their adequacy:
The company has implemented proper system for safeguarding the operations/business of the company, through which the assets are verified and frauds, errors are reduced and accounts, information connected to it are maintained such, so as to timely completion of the statements.
The Company has adequate systems of Internal Controls commensurate with its size and operations to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information. The company has internal audit and verification at regular intervals.
The requirement of having internal auditor compulsory by statue in case of listed and other classes of companies as prescribed shall further strengthen the internal control measures of company.
K. Discussion on financial performance with respect to operational performance:
The financial performance of the Company for the Financial Year 2024-25 is described in the Directors Report of the Company.
L. Material developments in Human Resources / Industrial Relations front including number of people employed:
The cordial employer - employee relationship also continued during the year under the review. The Company has continued to give special attention to human resources.
M. Caution Statement:
Statements made in the Management Discussion and Analysis describing the various parts may be "forward looking statement" within the meaning of applicable securities laws and regulations. The actual results may differ from those expectations depending upon the economic conditions, changes in Govt. Regulations and amendments in tax laws and other internal and external factors.
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