Jindal Worldwide Ltd Management Discussions

Domestic resilience. Consumption depth. Manufacturing momentum.

Indias economy demonstrated strong resilience during FY 2025-26 despite a challenging global environment marked by trade- policy uncertainty, geopolitical tensions and volatile commodity prices. Broad-based domestic demand, public infrastructure investment, improving rural activity and continued strength in services and manufacturing supported economic momentum.

According to the National Statistical Offices Provisional Estimates, Indias real GDP grew by 7.7% in FY 2025-26, compared with 7.1% in FY 2024-25. Real Gross Value Added grew by 7.9%, supported by robust expansion in the secondary and tertiary sectors. The secondary sector grew by 8.8%, while the tertiary sector expanded by 9.3%; the primary sector recorded 3.2% growth, supported by agriculture and allied activities.

Domestic consumption and investment remained important growth drivers. Private Final Consumption Expenditure and Gross Fixed Capital Formation each recorded growth of more than 7.5% during the year. This reflected improving demand conditions, sustained public capital expenditure and continued investment across infrastructure, manufacturing and services.

Manufacturing activity remained a key contributor to economic performance. The manufacturing, trade and related services, and financial, real estate and professional-services segments recorded double-digit growth during FY 2025-26. The continued emphasis on production-linked incentives, infrastructure creation, formalisation, digitalisation and supply-chain development is expected to support Indias long-term competitiveness.

Inflation remained broadly contained for a significant part of the year. The Economic Survey reported average headline CPI inflation of 1.7% during April-December 2025, aided primarily by moderation in food and fuel prices. Retail inflation, however, remains sensitive to food-price movements, weather conditions, global energy prices and geopolitical developments.

Indias external sector continued to benefit from services exports, remittances and diversified trade relationships. At the same time, exporters and manufacturers remained exposed to changing trade policies, demand conditions in key overseas markets, freight costs, currency movements and commodity-price volatility.

Outlook : India enters FY 2026-27 with strong domestic economic fundamentals, supported by consumption, investment, infrastructure development, financial-sector stability and policy support for manufacturing. The Economic Survey projected real GDP growth in the range of 6.8% to 7.2% for FY 2026-27. The outlook will nevertheless remain dependent on global trade conditions, energy prices, monsoon performance, inflation trends and the pace of private-sector investment.

For the textile sector, the domestic growth environment provides support through consumer demand, infrastructure development, formalisation and the continued evolution towards branded, value-added and responsibly manufactured products. We remain focused on strengthening our operating capabilities, product relevance, cost discipline and customer responsiveness while navigating external market developments.

Sources:

GLOBAL TEXTILE AND APPAREL INDUSTRY OVERVIEW

Sourcing is shifting. Sustainability is accelerating. Agility is becoming non-negotiable.

The global textile industry navigated FY 2025-26 amid selective consumer demand, evolving trade policies, geopolitical developments and volatile input and freight costs. These factors influenced sourcing decisions, inventory planning and operating margins across the textile value chain.

The basis of competition is expanding beyond cost and scale. Global buyers are increasingly assessing suppliers on product quality, turnaround time, design and development capability, traceability, responsible sourcing, compliance and supply-chain reliability. This is increasing the importance of integrated manufacturing capabilities, operational flexibility and consistent execution.

Sustainability continued to move from a brand-led preference towards a more material sourcing and supply-chain requirement. Global fiber production is projected to reach approximately 169 million tonnes by 2030 under a business-as- usual trajectory, up from 132 million tonnes in 2024. Polyester remained the largest fibre category, accounting for 59% of global fibre production. The industry therefore faces a growing imperative to improve material efficiency, increase traceability, reduce environmental impact and advance circularity.

Technological adoption is also reshaping the sector. Automation, digital product development, data-led production planning and process efficiency are helping manufacturers improve speed, quality consistency and resource productivity. At the same time, faster fashion cycles and more fragmented demand require closer customer engagement and responsive production planning.

Asia Pacific continued to be the largest textile market in 2025, supported by its extensive manufacturing ecosystem, large consumer base and export relevance. While demand conditions are expected to vary across geographies and product categories, the long-term industry opportunity remains supported by urbanisation, rising disposable incomes, growth in apparel and home-textile consumption, and increasing applications of technical textiles.

Outlook : According to Grand View Research, the global textile market was valued at US$ 1.16 trillion in 2025 and is projected to grow from US$ 1.21 trillion in 2026 to US$ 1.61 trillion by 2033, representing a CAGR of 4.2% during 2026-2033.

The outlook will continue to be shaped by consumer confidence, trade and tariff developments, raw-material and energy prices, currency movements and sustainability expectations. Manufacturers that combine quality, cost competitiveness, innovation, responsible manufacturing and supply-chain agility will be better positioned to participate in the industrys next phase of growth.

Sources:

INDIAN TEXTILE INDUSTRY OVERVIEW

Scale, sourcing strength and sustainability-led competitiveness.

Indias textile and apparel industry continued to demonstrate resilience during FY 2025-26, supported by a large domestic consumption base, a diversified manufacturing ecosystem and growing relevance in global sourcing. Rising urbanisation, increasing disposable incomes, e-commerce penetration and consumer preference for branded, functional and responsibly manufactured products continued to support demand across apparel, home textiles and value-added fabrics.

Indias textile and apparel industry was estimated at nearly US$190 billion in FY 2025-26. The sector remains a major contributor to employment and manufacturing activity, with capabilities extending across the value chain—from fibre and yarn to fabrics, garments, made-ups and technical textiles.

Exports remained resilient despite trade-policy uncertainty and uneven demand across key overseas markets. Indias textiles and apparel exports, including handicrafts, stood at 3,25,339 crore during FY 2025-26, compared with 3,19,573 crore in FY 2024-25, reflecting growth of 1.8%. India continues to be among the leading global exporters of textiles and apparel, supported by its product diversity, established manufacturing base and expanding presence in value-added segments.

The operating environment nevertheless remained challenging. Volatility in cotton and other input prices, energy and logistics costs, currency movements, compliance requirements and intensifying competition from other sourcing nations continued to influence realisations, margins and export competitiveness. For manufacturers, this reinforces the need for disciplined procurement, efficient capacity utilisation, product differentiation, quality consistency and responsive customer service.

Indias growth opportunity is increasingly linked to man-made fibres, technical textiles, sustainable materials, performance fabrics, branded apparel and home textiles. The sector is also benefiting from the ongoing shift of global sourcing strategies towards diversified and reliable supply bases. Indias strong domestic market provides an additional cushion against volatility in international demand.

Outlook : The long-term outlook for the Indian textile and apparel industry remains constructive. The Government has outlined an ambition to expand the sector to US$350 billion by 2030, supported by domestic demand, manufacturing modernisation, value addition and stronger integration with global markets.

The near-term outlook will remain dependent on consumer demand, cotton and energy prices, freight costs, currency movements and developments in international trade. Businesses with integrated capabilities, differentiated products, efficient operations and credible sustainability practices will be better positioned to participate in the sectors next phase of growth.

Sources:

GOVERNMENT INITIATIVES

Indias policy framework for textiles continued to focus on scale, value addition, infrastructure, sustainability, skills and export competitiveness. During FY 2025-26, existing sectoral schemes were complemented by policy announcements under the Union Budget 2026-27, reinforcing the Governments objective of strengthening the textile value chain from fibre to finished products.

PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks Scheme: The Government has approved seven PM MITRA Parks, including one in Gujarat, with an outlay of 4,445 crore for the period up to FY 2027-28. The scheme is intended to create integrated textile ecosystems with common infrastructure, improved logistics, shared services and facilities across the value chain. Such infrastructure development can support scale, supply-chain efficiency and value addition across the sector.

Production Linked Incentive (PLI) Scheme for Textiles: The PLI Scheme for Textiles, operational up to FY 2029-30, promotes investment in man-made fibre apparel and fabrics, as well as technical-textile products. The scheme seeks to build manufacturing scale, deepen value addition, improve competitiveness and support employment generation in identified product categories. Eligibility and benefits remain subject to the schemes conditions and Company-specific participation.

Integrated Programme for the Textile Sector: The Union Budget 2026-27 announced an integrated programme for the sector. Its proposed components include the National Fibre Scheme, Textile Expansion and Employment Scheme, National Handloom and Handicraft Programme, Tex-Eco Initiative and Samarth 2.0. The programme is intended to support fibre diversification, cluster modernisation, technology upgradation, testing and certification facilities, sustainable manufacturing and industry-oriented skilling.

Sustainability and circularity: The proposed Tex-Eco Initiative seeks to promote globally competitive and environmentally sustainable textile and apparel manufacturing, aligned with international sustainability expectations and emerging green- market opportunities. This policy direction is relevant as customers and global supply chains increasingly assess manufacturers on resource efficiency, traceability, responsible materials and environmental performance.

Export facilitation: Export-support mechanisms such as the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme and the Remission of Duties and Taxes on Export Products (RoDTEP) Scheme continue to provide a policy framework for reducing the incidence of embedded taxes and duties, subject to product eligibility and applicable notifications. The extension of these schemes up to 30^th September, 2026 provides short-term policy continuity for eligible exporters.

National Technical Textiles Mission: The National Technical Textiles Mission continues to support research, innovation, market development, skilling and export promotion in technical textiles. The initiative supports Indias broader objective of developing high-performance and specialised textile applications, while encouraging innovation and diversification across the sector.

These initiatives create an enabling environment for the textile industry. For us, the relevant policy themes are infrastructure- led efficiency, value-added manufacturing, sustainability, technology upgradation, skills development and improved access to domestic and export opportunities. The extent of any direct benefit to the Company will depend on eligibility, product coverage, investment decisions and applicable scheme conditions.

Sources:

GLOBAL DENIM FABRIC INDUSTRY

Fashion-led demand. Faster cycles. Responsible fabrics.

The global denim industry remained resilient during FY 2025-26 despite uneven discretionary spending, evolving fashion cycles and ongoing trade-related uncertainties. Denim continued to maintain its relevance as a versatile wardrobe staple across age groups, price segments and geographies, supported by its adaptability across casual, premium and fashion- oriented apparel categories.

Consumer preferences continued to shift towards comfort, fit, versatility and product differentiation. Relaxed and wide-leg silhouettes, stretch denim, darker washes, utility-inspired designs and premium finishes broadened the product landscape. This evolution has heightened the importance of fabric innovation, consistent quality, colour retention, durability and the ability to cater to diverse customer requirements.

Sustainability and traceability remained key priorities across the denim value chain. Brands and retailers increasingly emphasised responsible sourcing, recycled and lower-impact fibres, water-efficient processing, cleaner chemistry and enhanced supply chain transparency. These considerations are becoming integral to supplier selection, particularly in developed markets.

The industry also faced operational challenges arising from fluctuations in cotton prices, energy and freight costs, currency volatility, tariff developments and variable consumer demand. These factors reinforced the need for prudent sourcing strategies, agile production planning, operational efficiency and strong customer engagement.

For integrated denim manufacturers, competitive advantage increasingly depends on combining scale with innovation, consistent quality, responsible manufacturing practices and speed of execution. Our integrated capabilities across spinning, dyeing, weaving, processing and finishing enable us to meet these evolving requirements with greater control over quality, consistency and turnaround time.

Outlook : According to Grand View Research, the global denim jeans market was estimated at US$86.66 billion in 2024 and US$91.19 billion in 2025. It is projected to reach US$121.50 billion by 2030, growing at a CAGR of 5.9% from 2025 to 2030.

Currently, North America remains the largest regional market, while Asia Pacific is expected to witness the fastest growth over the forecast period. The long-term outlook continues to be supported by product innovation, premiumisation, expanding e-commerce access, evolving fashion preferences and the enduring relevance of denim across both mature and emerging markets.

Sources:

The Indian denim industry remains an important segment of the countrys textile and apparel value chain, supported by a large consumer base, established manufacturing capabilities and growing integration with fashion and retail channels. Denim continues to be relevant across mens, womens and youth apparel, spanning value, mid-premium and premium segments.

During FY 2025-26, demand was supported by expanding organised retail, e-commerce penetration, evolving consumer preferences and the growing adoption of casual and versatile apparel. Consumers increasingly sought products offering comfort, improved fit, stretch, differentiated washes, durability and contemporary styling. This has increased the importance of fabric innovation, reliable quality and responsive product development.

The Indian denim jeans market generated revenue of US$2.62 billion in 2025 and is estimated at US$2.81 billion in 2026. It is projected to reach US$4.93 billion by 2033, growing at a CAGR of 8.3% during 2026-2033. The mens segment remained the largest end-use category in 2025, while the womens segment is expected to record the fastest growth over the forecast period.

Despite this positive outlook, the industry continues to face challenges from cotton and other input-cost volatility, price sensitivity, intense competition, changing fashion preferences and increasing sustainability expectations. Manufacturers that combine product differentiation, efficient operations, responsible manufacturing and strong customer engagement will be better positioned to participate in this opportunity.

DEMAND DRIVERS

• Rising Disposable Income: Growth in income levels and aspirational consumption is supporting spending on branded, fashionable and lifestyle-oriented apparel, including denim.

• Growing Fashion Consciousness: Denim has become a staple across age groups and fashion segments, supported by evolving fits, washes, colours and styling preferences.

• Urbanisation and Casualisation: Urban lifestyles, hybrid work patterns and the preference for versatile casual wear continue to support demand for denim products.

• E-commerce Expansion: Digital commerce and organised retail are improving product accessibility, widening consumer choice and enabling faster fashion adoption across cities and towns.

TRENDS

• Sustainability: Brands and consumers are placing greater emphasis on responsibly sourced fibres, recycled materials, water-efficient processing, cleaner chemistry and supply-chain traceability.

• Premiumisation: Demand is growing for differentiated denim products with better comfort, stretch, finishes, colour performance and durability.

• Innovation and Technology: Automation, digital product development, advanced finishing techniques and data-led production planning are supporting quality consistency, resource efficiency and faster response.

• Customisation: Customer-specific developments, differentiated fits, washes and finishes are becoming increasingly important across both established and digital-first brands.

CHALLENGES

• Price Sensitivity: Despite premiumisation, affordability remains important across a substantial part of the domestic market, particularly in value-oriented segments.

• Competition: The industry faces intense competition from domestic and international brands and manufacturers, requiring continual focus on product relevance, quality and cost competitiveness.

• Input Costs and Supply-chain Volatility: Movements in cotton, yarn, dyes, chemicals, energy and freight costs can affect margins, inventory planning and working-capital requirements.

Sources:

The Indian shirt industry remains a relevant downstream market for premium shirting fabrics, supported by a large consumer base, expanding organised retail and the continued evolution of formal, casual and occasion-based apparel. During FY 2025-26, demand was supported by rising fashion awareness, digital commerce and consumer preference for comfort, fit, differentiated prints and versatile fabric choices across price segments.

Industry analysis estimates the Indian shirt market at US$3.29 billion in 2025, with a projected value of US$4.87 billion by 2034, representing a CAGR of 4.41% during 2026-2034. Formal shirts constituted the largest product segment in 2025, while sports shirts are expected to record relatively faster growth. Cotton remained the largest material category, reflecting its continued relevance in the domestic apparel market.

The industry nevertheless operates in a competitive environment shaped by changing fashion cycles, price sensitivity, input-cost movements, shorter product-development timelines and competition from domestic and overseas suppliers. This reinforces the importance of design relevance, quality consistency, responsive delivery and cost-efficient manufacturing.

Outlook : The long-term outlook remains constructive, supported by rising disposable incomes, premiumisation, expanding organised and digital retail, and demand for differentiated, comfortable and responsibly manufactured shirting products. For us, this creates an opportunity to strengthen our premium printed-shirting offering through product development, digital- print capability, quality consistency and customer responsiveness.

Sources:

The Indian cotton yarn industry operated in a mixed environment during FY 2025-26. Domestic demand from downstream apparel, home-textile and fabric manufacturers remained supportive; however, realisations and capacity utilisation were influenced by uneven export demand, raw-material availability, price competition and volatility in global trade conditions.

Export performance reflected this divergence. Indias cotton yarn, fabrics, made-ups and handloom-product exports stood at 1,02,399.7 crore in FY 2025-26, marginally higher than 1,02,002.8 crore in FY 2024-25. On a volume basis, cotton-yarn exports during August-December 2025 were 4% higher year-on-year and 9% above the five-year average, with Bangladesh, China, Egypt and Peru among the key destinations. Nevertheless, lower international yarn benchmarks and price competition moderated export value realisation.

Raw-material availability and cost remained important operating variables. During the 2025-26 cotton season, higher procurement by the Cotton Corporation of India helped support farmer realisations and market availability. At the same time, quality constraints in domestic fibre and the reinstatement of the 11% import duty on raw cotton from 1 January 2026 increased input-cost considerations for mills dependent on imported, contamination-free and long-staple cotton.

The industry continues to face risks from cotton-price movements, energy and freight costs, currency fluctuations, customer inventory corrections, tariff developments and demand trends in major overseas markets. This reinforces the importance of disciplined sourcing, inventory management, product quality, cost efficiency and responsive customer servicing.

Outlook: The medium-term outlook for the Indian cotton-yarn industry remains constructive, supported by domestic consumption, the countrys integrated textile value chain and opportunities to deepen exports of value-added textile products. Near-term performance will depend on cotton availability and quality, demand recovery across key export markets, competitiveness against other sourcing countries and the ability of manufacturers to maintain prudent working-capital and operating discipline.

Sources:

INDIAN ELECTRIC VEHICLE MARKET

Cleaner mobility. Policy support. Expanding adoption.

Indias electric vehicle (EV) market continued to expand during FY 2025-26, supported by broader product availability, increasing consumer acceptance and growing adoption across urban mobility, last-mile delivery and commercial applications. Cumulative EV sales in India reached 86.82 lakh units by the end of FY 2025-26, while annual EV sales surpassed 25 lakh vehicles during the year.

Electric two-wheelers remained the largest EV category, accounting for 57.8% of annual EV sales. Passenger electric three- wheelers accounted for approximately 29% of annual EV sales, highlighting their continued relevance in urban and shared- mobility applications. The electric two-wheeler segment recorded year-on-year growth of approximately 21%, while electric- car and electric-bus sales grew by approximately 86% and 48%, respectively.

The EV ecosystem continues to evolve through product innovation, increasing localisation, dealer-network expansion, charging infrastructure development and policy support. At the same time, affordability, charging access, battery supply chains, product quality, safety, after-sales service and availability of critical components remain important factors influencing the pace of adoption.

Looking ahead, Indias EV market is expected to benefit from fleet electrification, growing awareness of operating-cost advantages, new product launches and continued investment in manufacturing and charging infrastructure. The sustained growth of electric two-wheelers reinforces the relevance of our electric-mobility business and our focus on developing reliable, differentiated and future-ready mobility solutions.

Sources:

SWOT ANALYSIS

Assessing our position. Strengthening our response.