Fiberweb (India) Ltd Management Discussions

TECHNICAL TEXTILE INDUSTRY

The global and domestic technical textile industry experienced significant momentum in FY 2024-25, driven by growing demand across sectors such as automotive, healthcare, infrastructure, agriculture, and defense. With increasing awareness of the superior performance and functional properties of technical textiles, the industry witnessed robust investments in innovation and product development. In India, government initiatives such as the Production Linked Incentive (PLI) Scheme, the National Technical Textiles Mission (NTTM), and PM-MITRA integrated textile parks provided further impetus to the sector, reinforcing Indias emergence as a preferred manufacturing hub.

The technical textile industry in the United States continues to show steady growth, driven by rising demand across transportation, construction, defense, and healthcare sectors. In 2024, the U.S. technical textiles market was valued at approximately USD 34 billion, with projections indicating it will reach around USD 42.8 billion by 2030, reflecting a compound annual growth rate (CAGR) of 3.9%. Among the key technology segments, 3D knitting emerged as the largest contributor, while finishing treatments are witnessing the fastest growth due to increasing demand for functional and smart textiles. The transportation sector, particularly automotive and aerospace, remains the largest consumer, whereas the construction sector is expected to expand rapidly in the coming years. Despite a moderate decline in domestic production, imports have risen significantly, suggesting strong consumption trends and supply gaps that domestic players can potentially tap into. Government initiatives like the Berry Amendment, Advanced Functional Fabrics of America (AFFOA), and other textile innovation programs are further supporting research and development in high-performance, sustainable, and defense- grade textiles. As a result, the U.S. remains a key player in the global technical textile landscape, contributing approximately 16.5% of global market share in 2024.

Your Company continued to strengthen its market position during the year by aligning its operations with these industry trends. We registered a healthy revenue growth of approximately 15% over the previous year, backed by increasing demand in segments such as mobiltech (automotive textiles) and meditech (medical textiles). Our exports also saw a notable uptick as global clients diversified sourcing away from traditional markets like China and Bangladesh, providing us with new opportunities in the EU, Middle East, and Southeast Asia. Despite volatility in raw material prices, our focus on cost control and process optimization helped us maintain stable margins.

Risk management continued to be a key area of focus. The Company actively monitored supply chain vulnerabilities, regulatory changes, and environmental compliance risks. Diversification of raw material sources, continuous staff training, and adoption of ISO and industry-specific certifications helped mitigate these challenges. Climate-related disruptions such as unseasonal rains and localized flooding were addressed through contingency planning and investments in resilient infrastructure.

Looking ahead, we remain optimistic about the growth potential of the technical textile sector. The increasing adoption of high-performance textiles in defense, infrastructure, and medical applications, along with the rise of smart wearable textiles, presents numerous avenues for expansion. The Company plans to further enhance its product portfolio, strengthen its export network, and deepen its sustainability initiatives in FY 2025-26. We will also continue to explore opportunities for inorganic growth and technological partnerships to stay ahead in a rapidly evolving industry.

In conclusion, FY 2024-25 was a year of consolidation and strategic progress for the Company. By leveraging market opportunities, investing in innovation, and reinforcing operational excellence, we are well-positioned to deliver long-term value to all stakeholders in the coming years.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has established a robust internal control system commensurate with the size, scale, and nature of its operations in the technical textile sector. These controls are designed to ensure the orderly and efficient conduct of business, safeguard assets, prevent and detect frauds and errors, ensure the accuracy and completeness of accounting records, and facilitate the timely preparation of reliable financial information. The internal control framework is supported by well-documented policies, Standard Operating Procedures (SOPs), and authority matrices which are reviewed and updated periodically in line with industry practices and regulatory requirements.

The Audit Committee of the Board reviews internal audit findings, monitors the implementation of corrective actions, and ensures that appropriate risk mitigation mechanisms are in place. The management also conducts periodic risk assessments to identify potential areas of operational or financial exposure and proactively addresses them.

Overall, the internal control systems in place are adequate and operating effectively, ensuring compliance with applicable laws and regulations and fostering a culture of transparency, accountability, and continuous improvement across the organization.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE: Highlights:

During this year the earning per share (Standalone) of the face value of shares Rs 10.00 each has gone up from Rs 2.52 to 5.21 (Basic as well as diluted), per share.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations, estimates, projections, outlook, or predictions may be considered as "forward-looking statements" within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events and are subject to a number of risks and uncertainties, many of which are beyond the Companys control.

The actual results, performance, or achievements could differ materially from those expressed or implied in such forward-looking statements. Important factors that could influence the Companys operations include, but are not limited to, economic conditions affecting demand/supply, price conditions in the domestic and international markets, changes in government regulations, tax laws, and other statutes, and force majeure events.