jakharia fabric ltd Management discussions

The management discussion and analysis report provides an over view of the financial activities for the fiscal year ended on 31st March 2023, gives an overall sight of the textile industry, opportunities and threats in the business and Companys strategy to deal with that. This report is designed to focus on current years activities, resulting changes and other known facts in conjunction to the financial and strategic position of the Company.

SEGMENT REVIEW AND ANALYSIS

Our Company is engaged in the business of dyeing and processing of fabrics on job work basis for other textile companies as well as for own manufacturing product lines. Our Company procures Grey Fabric from the market and further dyes and finishes the same as per the clients requirements on the basis of quality of the fabric, sizing requirements etc. Our Company also outsources certain processes like weaving of the fabric and printing as per the demand of the customers based on the quality required. Our Company manufactures and processes the fabric specially suitable for Shirtings.

The investment in M/s. Jakharia Industries (Partnership Firm) is with the intention of targeting further penetration in the Textile industry, further creating a wide market locally as well as internationally. We believe that the Partnership will prove to be beneficial for the Company helping to create a brand image of the Group. We believe that, with a wide Product mix and the available market mix for the processed fabric along-with the modernised facilities adds to the positive factors. We seek to develop our Brand Image by continuing to expand our product portfolio and services offered by adding product categories to complement our product mix and the market mix.

We have positioned ourselves as a multiproduct, multi-fibre and multi-market player ensuring that our products include a diverse mix of fabrics mainly catering to domestic market and also to the international market. Wide ranges of fabric are processed at our Processing house which includes cotton, polyester, viscose and man-made & blended fabrics. Our Company has two (2) processing units located at MIDC Area of Saravali, Bhiwandi in Maharashtra and MIDC Area of Tarapur, Bhiwandi in Maharashtra. The plant has the facilities for dyeing and processing wide range of fabrics. We have dedicated semi-automatic machines and skilled operators for manual checking of raw materials as well as Finished Goods. Our Testing and QC Technical team combined with our testing equipments ensures the quality of raw material dispensed in the production process and also the finished goods delivered to our customers. This helps in improving our procurement process thus reducing wastages, returns and other related costs.

The Company is operating only into job-work, therefore segment/ product-wise details are not applicable.

OVERVIEW OF ECONOMY

The textile industry is a well-established with showing storing features and bright future. The textile industry is capital and technology intensive comparable with automobiles aircraft computers and heavy machinery industry. In comparison with other countries like China the cost of textile production in India is quite less. Textile sector is the oldest and largest manufacturing sector in India. The textile manufacturing business is a pioneer activity in the Indian manufacturing sector and it has a primordial importance in the economic life of the country which is still predominantly based on the agro-alimentary sector. The sector profitability is likely to improve gradually with players passing on increased raw material prices to end-users given the healthy demand a depreciating rupee and waning impact of the structural issues.

Industry Structure and Developments

The growth in the Indian home textiles is supported by increasing population, rising income levels, increase in organized retail, and growth of end-use sectors like housing, hospitality, healthcare. Increasing efforts in quality improvement, innovations through R&D programs, and other preferential value-added features have helped

Indias home textile products become more popular in the global market.

The new budget for 2023-24 contains a sizeable increase in grants for the textile industry which shows the governments priorities for the textile industry. All in all, this financial support should create a favourable environment for the continued success of Indias textile industry.

Opportunities & Threats

• Opportunities:

- Technical Textiles.

- Growing domestic market.

- Large Potential Domestic and International Market.

- Vast export marked to explore.

- Buyers preference for India.

• Threats:

- Competition from other developing countries especially China.

- Geographical Disadvantage.

- Political/Economic Instability.

- To male balance between price and quality.

Outlook

The future for the Indian textile industry looks promising buoyed by both strong domestic consumption as well as export demand. High economic growth has resulted in higher disposable income. This has led to rise in demand for products creating a huge domestic market.

The Company continues to explore the possibilities of expansion and will make the necessary investments when attractive opportunities arise.

Risks and Concerns

In todays complex business environment almost every business decision requires executives and managers to balance risk and reward. Effective risk management is therefore critical to an organizations success. Timely and effective risk management is of prime importance to our continued success.

CAUTIONARY STATEMENT

Statements in the Boards Report and the management discussion and analysis containing the objectives, expectations or predictions of the company may be forward-looking within the meaning of securities laws and regulations. Actual results may differ materially from those expressed in the statement. The operations of the Company could be influenced by various factors such as domestic and global demand and supply conditions affecting sales volumes and selling prices of finished goods, input availability and cost, government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.

By order of the Board of Directors for

JAKHARIA FABRIC LIMITED

Sd/-

Jignesh Shah

Chairman & Executive Director

DIN: 00256315

Place: Bhiwandi

Date: 07.09.2023