Ambassador Intra Holdings Ltd Management Discussions

The management of the Company is pleased to present its report on the business environment & industry scenario, industry risks and opportunities and Companys performance during the financial year 2024-25.

GLOBAL ECONOMY:

The global textile and garment industry in 2024-2025 has continued its postpandemic recovery trajectory, underpinned by consumer demand resurgence, digital transformation, and growing emphasis on sustainable practices. The textile and garment industries play a very important role in the global economy.

They provide jobs to more than 60 million people around the world, especially in countries like India, China, Bangladesh, and Vietnam.

-Market Size and Value: In 2024, the global textile market was valued at

approximately $1.2 trillion, with the garment sector contributing around $830 billion. Looking ahead, the textile market is expected to be worth about $760 billion in 2025 and grow to nearly $974 billion by 2030, with an average annual growth rate of 5.1%. This growth is mainly driven by the increasing demand for fashion and clothing through online shopping platforms. Factors such as rising disposable incomes, urbanization, and changing fashion preferences are shaping consumer behavior. The growing popularity of fast fashion and the convenience of online retail are also playing a major role in influencing global clothing consumption trends.

-Technology & Innovation: The global shift to e-commerce is transforming how retail works, especially in fashion and textiles. New technologies like 3D design, virtual fitting rooms, and Al-powered trend forecasting are helping brands become faster and more efficient throughout their supply chains. At the same time, smart and technical textiles are seeing strong growth. These include fabrics enhanced with AI, IoT, digital printing, 3D knitting, and smart features.

Technical textiles —used in sectors such as automotive, construction, healthcare, and defense —are expanding rapidly. Innovations in non-woven materials, smart fabrics, and functional clothing are further boosting this segment.

-Employment Figures: The global textile and garment industry employs over 300 i

million people worldwide. A significant portion of this workforce is made up of women, particularly in garment production hubs in developing countries, where

the industry heavily relies on female labour for manufacturing and assembly tasks.

-Sustainability Trends: The industry is seeing a growing shift toward circular fashion, with increasing use of recycled fibers and a rise in the slow fashion movement. Consumers are becoming more conscious of sustainability, prompting brands to invest in eco-friendly certifications, improve supply chain transparency, and adopt green technologies to reduce their environmental impact.

INDIAN ECONOMY:

India continues to stand out as one of the fastest-growing major economies in the world. With strong domestic demand, stable inflation, and ongoing reforms, the economic outlook remains positive for the year ahead.

-Economic Growth: According to the Reserve Bank of India (RBI), the Indian economy is projected to grow by 6.5% in FY 2025-26. This growth is being fueled by rising private consumption, increased infrastructure investment, and stable macroeconomic policies. In the last quarter of FY 2024-25, India recorded a robust 2.3% GDP growth, reflecting the countrys resilience amid global economic uncertainties. In the Indian economy, the textile and garment industry are one of the largest and oldest sectors. India is the second-largest producer of textiles and garments in the world, employing over 45 million people directly and another 100 million in allied industries like hand loom, weaving, and small-scale units.

-Inflation and Monetary Policy: Retail inflation has eased to around 4.6%, largely driven by declining food prices and the impact of effective monetary policy. The Reserve Bank of India (RBI) continues to maintain a balanced approach — containing inflation while supporting economic growth. India signed a Free Trade Agreement (FTA) with the UK in mid-2025, providing duty-free access for Indian textiles and garments.

-Government Spending and Tax Policy: The government plans to cut the fiscal deficit to 4.4% of GDP, showing strong financial discipline. Tax relief for the middle class is expected to boost household spending. Ongoing infrastructure projects, such as the National Infrastructure Pipeline, will support long-term economic growth.

India enters FY 2025-26 with solid economic foundations. Despite global uncertainties, strong domestic demand, government support, and digital innovation are set to sustain growth. Businesses aligned with key sectors like infrastructure, green energy, manufacturing, and digital services are poised to thrive.

THE INDUSTRY OVERVIEW:

-Importance to the Indian Economy: The textile and garment sector is one of Indias biggest industries, contributing around 2.3% to GDP and providing jobs to over 45 million people. It supports livelihoods across rural and semi-urban areas, from traditional handloom artisans to large manufacturers.

-Market size and Growth: The domestic textile market is valued at around Rs.12- 15 lakh crore (USD 160-200 billion) and is expected to grow 10-12% annually over the next five years. This growth is driven by rising incomes, urbanization, and growing fashion awareness among young people. The ready-made

garments segment is the fastest-growing, boosted by more retail stores and online shopping.

-Industries Structure: The Indian textile ecosystem covers fiber production, yarn making, fabric weaving, and garment manufacturing. It includes everything from small handlooms and handicrafts to large, mechanized mills. Both power loom and handloom sectors play important roles, with handloom products valued for their cultural heritage and craftsmanship.

-Consumer Trends: Higher disposable incomes, changing lifestyles, and a preference for branded, fashionable clothes are driving demand. E-commerce has made it easier for people in smaller cities to buy a wide range of textile and garment products, boosting sales. At the same time, more consumers are becoming aware of sustainability, increasing demand for eco-friendly and organic fabrics.