Kizi Apparels Ltd Management Discussions

The management of the Company is pleased to present its report on the business environment & industry scenario, industry risks and opportunities and Companys performance during the financial year 2024-25.

GLOBAL ECONOMY

The global textile market size reached US$ 1,098.4 Billion in 2025, reflecting a continued upward trend. According to the latest estimates by IMARC Croup, the market is expected to reach US$ 1,189.5 Billion by 2033, growing at a compound annual growth rate (CAGR) of 3.6% during 2025-2033.

The market growth is being driven by evolving consumer preferences, rapid urbanization, population growth, and a strong shift toward eco-friendly, organic, and functional textile. Governments across the globe have introduced regulatory frameworks and incentives to support sustainable textile production, further bolstering industry momentum.

With the global population expanding, the demand for clothing and textile products continues to increase steadily. Rising purchasing power and increasing consumer expenditure in both developed and emerging economies are playing a crucial role in driving textile consumption. In particular, emerging markets are witnessing robust demand supported by rising disposable incomes, growing fashion awareness, and infrastructural development.

Technological innovation remains a key catalyst in the transformation of the textile industry. Advancements such as automation, digital printing, and smart textiles are reshaping manufacturing capabilities. Automation has significantly enhanced production efficiency and minimized labour costs, allowing manufacturers to meet the growing market demand more effectively. Digital printing technologies are enabling greater customization and reduced turnaround times, while smart textiles embedded with sensors and electronics are gaining traction in sectors like sportswear, healthcare, and defence.

These innovations not only align with changing consumer expectations for performance and personalization but also enhance global competitiveness by delivering superior quality, faster production cycles, and innovative product offerings. As a result, the global textile industry is well-positioned for sustained growth in the years ahead.

INDIAN ECONOMY

India Remains One Of The Worlds Leading Garment-Manufacturing Hubs. Known For Its Rich Textile Heritage And Skilled Craftsmanship Spanning The Entire Value Chain—From Fibre And Yarn To Finished Fabric And Garments. Indian Textiles. Especially Cotton. Silk, And Denim, Continue To Enjoy Significant Global Demand. Indian Apparel Brands And Products Have Made Strong Inroads Into International Fashion Markets, Reinforcing The Country?s Position As A Trusted Sourcing And Production Partner.

The textile industry is one of Indias most crucial sectors, contributes over 20% to the nations industrial production and playing a pivotal role in supporting the agricultural and rural economy. It accounts for over 35% of India?s total export earnings (exceeding USD 10 Billion annually) and contributes approximately 2.3% to Indias CDP (over US$ 76 Billion in 2025).

As of 2025, India is the largest producer and second-largest consumer of cotton globally. The country boasts the highest cotton cultivation acreage, approximately 13.5 million hectares, which accounts for about 38% of the worlds total cotton cultivation area.

The Indian Textile And Apparel Industry Is Highly Diversified, Comprising Traditional Handloom. Handicrafts, Wool. And Silk. As Well As A Strong Organized Sector With Modern Textile Mills And Apparel Units. This Diversity Offers A Competitive Edge In Catering To Both Domestic And International Markets.

The Indian Textile And Apparel Market Size Is Currently Valued At Us$ 256.5 Billion In 2025, Crowing At ACagr Of 14.59% Since 2022. It Is Projected To Reach Us$ 387.3 Billion By 2028, Driven By Increasing Domestic Consumption, Rising Disposable Income, Government Incentives (Like Pli Schemes), And Export Demand.

The Sector Remains A Key Pillar Of The Indian Economy:

Contributing Approximately 2.3% To Indias Cdp, Which Translates To Over Us$ 76 Billion In 2025.

Andhra Pradesh, Telangana, Gujarat, Haryana, Tamil Nadu, And Jharkhand Continue To Be Major Textile And Apparel Manufacturing States, With Crowing Investments In Textile Parks, Integrated Clusters, And Modern Production Infrastructure.

The Governments Emphasis On "Make In India", Combined With Evolving Trade Agreements And Sustainability Initiatives, Is Further Strengthening Indias Global Competitiveness In The Textile Space.

INDUSTRY OVERVIEW AND OUTLOOK

As we progress through 2025, the global apparel industry is undergoing a significant transformation, driven by technological innovation, sustainability imperatives, and changing consumer behaviour. This shift presents both an opportunity and a responsibility—to innovate, adapt, and lead in a rapidly evolving market landscape.

As we progress through 2025, the global apparel industry is undergoing a significant transformation, driven by technological innovation, sustainability imperatives, and changing consumer behaviour. This shift presents both an opportunity and a responsibility—to innovate, adapt, and lead in a rapidly evolving market landscape.

Sustainability and transparency remain at the core of consumer expectations. Ethical sourcing, carbon footprint reduction, and adherence to fair labour standards have become fundamental business imperatives rather than optional value-adds. Regulations across key markets—such as the EUs Green Claims Directive and the U.S.?s growing focus on ESC disclosures—are reinforcing the need for brands to validate sustainability claims with measurable data.

One of the most prominent trends in 2025 is the shift towards circular fashion. The resale, rental, repair, and recycling models are gaining mainstream traction, particularly among younger consumers who prioritize affordability and environmental impact. Leading retailers are launching in-house resale platforms and upcycling programs to meet this demand while extending product lifecycles.

At the same time, the industry is addressing supply chain resilience in the wake of recent disruptions by investing in nearshoring, digital supply chain mapping, and blockchain-based traceability tools. These steps aim to enhance agility, ensure compliance, and build consumer trust.

The convergence of digitalization, sustainability, and ethical governance is not just redefining the apparel sector—it is positioning it as a critical player in driving broader environmental and social progress. The modern apparel industry is evolving into one that balances creativity with responsibility, ensuring long-term relevance and resilience in a competitive global marketplace.

Macro-Economic Overview:

India continues to consolidate its position as one of the leading players in the global textile and apparel (T&A) industry, supported by a strong raw material base, skilled workforce, and expanding manufacturing ecosystem. In FY 2024-25, the T&A sector contributed approximately 7.8% to Indias total exports and maintained a 5% share in global trade, reflecting its strategic importance to the national economy.

During FY 2024-25, India?s textile and apparel exports, including handicrafts, reached US$ 36.12 billion, marking a year-on-year improvement despite persistent global economic uncertainties, shifting consumer trends, and logistical constraints. Monthly exports in February 2025 stood at US$ 1.89 billion, compared to US$ 1.81 billion in February 2024, while apparel exports increased slightly to US$ 1.52 billion from US$ 1.48 billion in the same period.

From April 2024 to February 2025, cotton fabrics and made-ups exports registered a steady recovery with a cumulative value of US$ 10.96 billion. However, volatility persists in other segments such as man-made fibers, synthetic textiles, and handicrafts, primarily due to global market realignments and evolving demand-supply dynamics.

In alignment with long-term national priorities, the Government of India aims to scale total textiles production to US$ 250 billion and exports to US$ 100 billion by 2030. Union Minister Piyush Goyal reaffirmed this vision during the Ministry of Textiles? Chintan Shivir, emphasizing the need for modern infrastructure, digital transformation, increased R&D investment, and stronger global trade partnerships. Initiatives under schemes like PMP (Production Linked Incentive), PM MITRA Parks, and RoDTEP/RoSCTL are expected to further boost competitiveness and export potential.

The macroeconomic environment, while challenging, is gradually becoming favourable due to improved global demand, renewed trade negotiations, and policy reforms aimed at enhancing Indias positioning as a global textile hub.

OUTLOOK:

As of 2025, the outlook for Indias textile industry remains highly optimistic, driven by strong domestic demand, global market expansion, and policy support. The industry has reached an estimated market value of US$ 350 billion, growing at a CAGR of 14.8% from 2021 to 2025.

Key growth drivers include rising disposable incomes, evolving consumer preferences, and an increasing shift toward eco-friendly and functional textiles. The sector continues to attract significant interest, with cumulative investments projected at US$ 120 billion, and aims to scale up exports to US$ 300 billion in the coming years, aligned with the government?s long-term vision.

With continued innovation, infrastructure support, and global collaborations, the Indian textile industry is well-positioned for sustained growth and global leadership.