kakatiya textiles ltd share price Management discussions

INDUSTRY CONDITIONS AND REVIEW OF OPERATIONS

1. INDUSTRY STRUCTURE:

Indian is the worlds second-largest producer of textiles and garments. It is also the fifth-largest exporter of textiles spanning apparel, home and technical products. The fundamental strength of the textile industry in India is its strong production base of a wide range of fibre/yarns from natural fibres like cotton, jute, silk and wool to synthetic/man-made fibres like polyester, viscose, nylon and acrylic.

The Indiantextile and apparel industry is expected to grow at 10% CAGRfrom 2019-20 to reach US$ 190 billion by 2025-26. Indiahas a 4% share of the global trade in textiles and apparel. Thetextiles and apparel industry contribute 2.3% to the countrysGDP, 13% to industrial production and 12% to exports. Thetextile industry has around 45 million of workers employed inthe textiles sector, including 3.5 million handloom workers.Indias textile and apparel exports (including handicrafts) stoodat US$ 44.4 billion in FY22, a 41% increase YoY. Total textileexports are expected to reach US$ 65 billion by FY26.

Opportunities

The Indian textile industry is set for strong growth, buoyed by both strong domestic consumption as well as exportdemand.The global textile industry will continue to grow along with growing consumption of textile products indeveloping countries and a gradual economic recovery of major developed economies. Indias textile sector is aidedby several key advantages, in terms of availability of adequate raw material, entrepreneurial skills, large domesticmarket, presence of supporting industries and supporting policy initiatives from the government.

Challenges, Risks and Threats

Covid-19 broader trends in the economy are expected to have adirect impact on your Companys growth prospects as well.Inflation is expected to remain elevated for the foreseeablefuture, driven by war-induced commodity price increasesand broadening price pressures. In addition, the anticipatedincrease in interest rates by Central Banks in the coming yearare also expected to lower growth and exert pressure oneconomies particularly those in emerging markets.

In these circumstances, the ability to successfully navigatecost pressures would have a significant bearing on the overallperformance of your Company. Diminishing purchasing powerand demand due to the economic circumstances could resultin fundamental shifts in consumer behaviors and adverselyimpact the market for textiles and apparel. Migration to valuefor-money options could also lead to reduced growth andprofitability for your Company.

2. INDUSTRIAL RELATIONS AND HUMAN RESOURCE MANAGEMENT:

Employees are the valuable assets and the strength of an organization in its growth, prosperity and development. Your Company is continuously striving to create appropriate environment, opportunity and systems for development and utilization of their full potential. The Company continued to have cordial and harmonious relations with its employees. It considers manpower as itsassets and that people had been the driving force for growth of the Company.

3. HEALTH, SAFETY AND SECURITY ENVIRONMENT

The Company has always been adopting all possiblesafety measures considering the health and safety ofthe workers and staff at all levels. This has resulted inimprovement in the working environment and motivationamong workers and staff.

4. CAUTIONARY STATEMENT:

Certain statements in the "Management Discussion and Analysis" section may be forward looking and are stated asrequired by applicable laws and regulations. Many factors may affect the actual results, which could be different fromwhat the Directors envisage in terms of future performance and outlook.

	By Order of the Board of Directors
	For Kakatiya Textiles Ltd
	Sd/-
	V Ravindranath
	Chairman & Director
	DIN 00480295
Place: Tanuku
Date : 14.08.2023