Bhilwara Technical Textiles Ltd Management Discussions.



The global growth forecast for 2019 and 2020 had already been revised downward in the last World Economic Outlook (WEO), partly because of the negative effects of tariff increases enacted in the United States and China earlier this year. Global growth, which peaked at close to 4% in 2017, softened to 3.6% in 2018, is projected to decline further to 3.3% in 2019. Although a 3.3% global expansion is still reasonable, the outlook for many countries is very challenging, with considerable uncertainties in the short term, especially as advanced economy growth rates converge toward their modest long-term potential.

The risks to the global outlook remain skewed to the downside amid high policy uncertainty. The global economy also remains susceptible to a sudden shift in market sentiment and associated tightening in financial conditions. On the upside, if recent tariff increases are rolled back and trade tensions resolved, rising business confidence could lift growth. Further, fiscal policy should strike the right balance between growth and debt sustainability objectives as appropriate in individual countries. In countries with high debt, gradual fiscal adjustment is needed, particularly if financing risks are large. Depending on country circumstances, efforts should continue to raise revenue, reduce debt-related vulnerabilities, and make steady progress on economic and financial rebalancing.

The Indian economy witnessed robust industrial growth during FY 2018-19 and the momentum is expected to continue next year as well. The real challenge on the supply side is to reverse the slowdown in the growth of the agriculture sector and sustain the growth momentum in the industry. However, Indias GDP growth is expected to accelerate moderately to 7.5% in FY19-20, driven by continued investment strengthening-particularly private improved export performance and resilient consumption.


The Textile industry in India is highly diversified with a wide range of segments ranging from products of traditional handloom, handicrafts, wool and silk products to the organized textile industry. It is the second largest industry in terms of providing employment opportunities to more than 35 million people in the country.

While maintaining its position in the market as the largest producer of jute in the world, India is also the second largest producer and exporter of cotton in the world at USD 6.3 billion, marginally close to China. The size of Indias textile and apparel market recorded USD 108.5 billion in 2015 and is expected to reach USD 226 billion by 2023, growing at a CAGR of 8.7% between 2009 and 2023.

In order to follow the goal of making Indias development inclusive, the central government is focusing on a number of policies in providing best manufacturing and infrastructure to local artisans, technology and innovation, enhancing skills and strengths of the local industry.Amended Technology Upgradation Funds Scheme (ATUFS) is one of the various policy initiatives &programmes which has been implemented for development of textiles and handicrafts, particularly for technology, infrastructure creation and skill development. ATUFS provides one time capital subsidy on investment in labour intensive segments and garment manufacturing and design studios. For apparel/garment and technical textiles subsectors, a subsidy of upto 15% is provided on capital investment, subject to a ceiling of INR 30 Crore over five years, whereas, for other subsectors, the subsidy is upto 10 % with a ceiling of INR 20 Crore.

The future for the Indian textile industry looks promising, buoyed by both strong domestic consumption as well as export demand.


Technical textiles are functional fabrics, which find applications across multiple end-use industries such as automobile, construction, and others. These materials exhibit enhanced performance as compared to conventional textiles. Technical textiles are an important part of the textile industry and its potential is still largely untapped in India. However, with the increase in disposable income, the consumption of technical textiles is also expected to increase.

By 2020-21 the technical textile sector is projected to reach a market size of Rs.2 lakh crores. To boost the technical textile sector, Ministry of Textiles has taken the initiative of persuading all the user Ministries at the highest level to incorporate the technical textiles in their specifications, manuals, guidelines etc. With growing awareness and consumption of technical textiles, greater innovation in the field and demand from end-use industries, the country is a promising destination with an increasing demographic dividend and consumption scenario. The global technical textile market was valued at USD 234,715 Mn. in 2017 and is projected to reach to USD 334,938 Mn. by 2025, growing at a CAGR of 4.5% from the year 2018 to 2025.


Textile exports from India are consistent in various types of yarns where India has a very strong position as a reliable supplier worldwide. The opportunity for exports is not just for the manufacturers but as a trader too there is ample opportunity as there are many lesser known good quality producing mills which do not have needed exposure in exports market.

Taking clue from this opportunity, we at BTTL decided to explore exports market with trading of yarn and have started exporting following yarns:100% Cotton Raw White yarns, 100% Cotton Dyed yarns and100% Cotton Melange yarns. Countries where we are focusing for these exports are Europe, Mauritius, Tunisia, Bangladesh etc. Since most of these products are commodity in nature, the trading margin on these products is in the range of 2-5%.

During the year, Company achieved standalone revenue of Rs.150.63 Lakh against Rs.67.67 Lakh recorded in the previous year ended 31st March, 2018. Further the Profit before tax of the Company was Rs.42.80 Lakh for the year ended 31st March, 2019 as against Rs.44.13 Lakh attained during the previous year ended 31st March, 2018. The Net profit of the Company during the year was at Rs.35.19 Lakh against Rs.31.18 Lakh in the previous year ended 31st March, 2018.

Your Company is proposing to accelerate the volume through exports of various yarns and is hopeful of achieving sizeable turnover and profitability.

Bhilwara Technical Textiles Limited already holds substantial stake in equity share capital of BMD Pvt. Ltd. which is a leading manufacturer of high performance specialized furnishing fabrics for automotives, contract furnishing, flame retardant fabric & air texturized yarn.

BMD Pvt. Ltd. has also forayed in the Wind Power and Solar Power Generation which also gives the Company indirect exposure in the renewable energy sector.

BMD has a continuous track record of good performance and maintains leadership for its products in OE Segment.


1. Complete value chain from the procurement of raw materials to the production of finished goods.

2. Huge untapped potential for the development of technical textiles.

3. Make in India campaign covering 25 sectors including the textile and garment industry has been launched.Large and diversified segments in this industry that provide wide variety of products.

4. ASEAN countries to develop as a textile and garment manufacturing hub, so opportunities for global and regional export should improve.

5. New Product development which needs additional focus in Indian Companies in order to move up the value chain and capture a great global market share.

6. Vibrant domestic market, enabling manufacturers to spread out risk.


1. Use of outdated manufacturing technology from the low end supplier which has resulted in low value addition in the industry.

2. India is its geographical distance from major global markets of US, Europe and Japan in contrast to its rivals like Mexico, China etc which are comparatively nearer. Big geographical distance results in high shipping expenses and lengthy lead-time.

3. Fragmented Industry leads to lower ability to expand and emerge as world -class players.

4. Intense competition in domestic market.

5. Volatile exchange rate situation.

Significant changes i.e. change of 25% or more in the key financial ratios

In accordance with the amendments notified by SEBI in Regulation 34 the SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015 on 9th May, 2018, the details of significant changes i.e. change of 25% or more in the key financial ratios as compared to the immediately previous financial year along with detailed explanations are reported hereunder :-

Particulars Period Ended 31.03.2019 Period Ended 31.03.2018 % change Remarks
Stability Ratios
Debt Equity Ratio (Total Debt) - - - -
Debt Service Coverage Ratio (DSCR) - - - -
Interest Coverage Ratio - - - -
Liquidity Ratios
Current Ratio (Incl. CPTL) 6.49 1075.02 -99.40 Due to start of trading activity during the Financial Year 2018-19.
Current Ratio (Excl. CPTL) 6.49 1075.02 -99.40 Due to start of trading activity during the Financial Year 2018-19.
Debtors Turnover Ratio (no. of days) 364.68 0 0 Due to start of trading activity during the Financial Year 2018-19
Inventory Turnover Ratio (no. of days) 392.51 0 0 Due to start of trading activity during the Financial Year 2018-19
Profitability Ratios
Operating Profit Margin 54.65 0 0 Due to start of trading activity during the Financial Year 2018-19
Net Profit Margin 44.73 0 0 Due to start of trading activity during the Financial Year 2018-19


During the financial year ended 31st March, 2019, the return in net worth of the Company was 1.99% as compared to the previous financial year ended 31st March, 2018 which was at 1.80%. The change was due to increase in other income during the financial year 2018-19.


The Company has followed the same Accounting treatment as prescribed in the relevant Accounting Standards while preparing the Financial Statements.


The Company works on the theory of developing the key competencies that enable individuals in organizations to perform current and future jobs through integrated use of training, organization and career development efforts to improve individual, group, and organizational effectiveness. Your Company believes that continuous development of its human resource fosters engagement and drives competitive advantage. The Company continues to focus on people development by developing a continuously learning human resource base to unleash their potential. The Company at present has one employee.


Certain statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be Forward-Looking Statements within the meaning of applicable laws and regulations. Forward-looking statements are identified in this report by using words like anticipates, believes, expects, intends and similar expressions in such statements. Such statements, however involve known or unknown risks, significant changes in the Political and Economic Environment in India or Key Markets Abroad, Exchange Rate Fluctuations and other costs that could cause actual outcomes and results to be materially different from those expressed or implied. The Company takes no responsibility in respect of forward looking statement herein which may undergo changes in future on the basis of subsequent developments, information or events.