knitworth exports ltd share price Management discussions

Industry Structure and Development:

Indian textiles industry has abundant availability of raw materials such as cotton, wool, silk and jute as well as skilled workforce has made the country a sourcing hub. It is the worlds second largest producer of textiles and garments. The Indian textiles industry accounts for about 24% of the worlds spindle capacity and eight per cent of global rotor capacity. The potential size of the Indian textiles and apparel industry is expected to reach US$ 223 billion by 2021. The textiles industry has made a major contribution to the national economy in terms of direct and indirect employment generation and net foreign exchange earnings. The sector contributes about 14% to industrial production, 4% to the gross domestic product (GDP), and 27% to the countrys foreign exchange inflows. It provides direct employment to over 45 million people. The textiles sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of Indias economy.

In textiles and apparel specifically, domestic consumption has grown at over 13 per cent per annum over the last five years and has reached well over $60 billion, fuelled by the demographic advantages of Indias population, increasing urbanisation, growing disposable income and more marked penetration of organized retail. Indias export of textiles and apparel has also grown at over 11 per cent in the last five years and presently stands at $40 billion – a success but a long way from where Chinas industry stands today (just 10 per cent), and nowhere near its potential. Traditionally Indian textile and apparel manufacturing industries have been cotton focused. Even today, cotton has more than a 60 per cent share compared to 40 per cent share globally. But this scenario is changing fast. Manufacturers, as well as brands, are increasingly looking towards other fibre options, mainly polyester. With the increase in the ‘Value Retailing format in the domestic market and increased demand for synthetic fibre-based products from global brands and retailers, demand for polyester is set to grow.

Opportunities and Threats and Risks and Concerns:

The unsaturated polyester resins market in India is poised to grow substantially in the next five years. The market is mainly driven by domestic consumption basically by government, NGOs, and civic bodies. The Indian unsaturated polyester resin market witnessed strong growth in the last couple of years due to robust GDP growth, increased manufacturing activity, and core sector growth.

Application markets such as transportation are growing rapidly, helping the growth of Indian composites unsaturated polyester resin market. According to market forecasts, Indian unsaturated polyester resin market is expected to reach 445 million pounds by 2018.

Lucintels study encompasses the major drivers. Low price of unsaturated polyester resin as compared to other resins such as epoxy and vinyl ester is also a driving factor for growing demand of it. Also, with the Indian composites markets steady growth, unsaturated polyester resin market is also poised for big growth.

Lucintel discusses the various challenges and opportunities faced by the Indian composites unsaturated polyester resin market. The raw materials needed for this industry are priced quite high as compared to traditional metals such as steel and aluminum and this poses a challenge for the Indian unsaturated polyester resin industry. Polyester resin constitutes more than half of the resin used in Indian composite industry.

This report highlights different aspects of Indian composites unsaturated polyester resin market. Due diligence has been given to the current market scenario in India. The Indian unsaturated polyester resin market is expected to grow impressively in near future. The top players need to formulate effective marketing strategies to take advantage of the opportunities, resulting in improved revenue and profitability.

Some of the features of "Growth Opportunities in the Indian Composites Unsaturated Polyester Resins Market 2013-2018 Trend, Forecast, and Competitive Analysis" include:

Indian composites unsaturated polyester resins market size and growth rates of the UPR in Indian Composites Industry in terms of value and volume Indian composites unsaturated polyester resins market breakdown by applications such as pipe and tanks, transportation, wind energy, contraction, marine, electrical and electronics.

Indian composites unsaturated polyester resins market outlook, trend (2007-2012) & forecast (2013-2018) by applications in terms of value and volume Driving factors for the growth in the various applications. Growth opportunities and emerging trends in Indian composites unsaturated polyester resins market

While GDP growth and Cotton availability are by far most important drivers, there are several other factors that will drive PSF growth in India. Lower per capita fibre consumption of 5 kg in India compared to World average of 12 kg and China at 19 kg is an opportunity for growth. Cotton: Man Made Fibre use share of 60:40 in India compared to 35:65 globally. Polyester will play an important role to bridge this gap

A number of other drivers are: Demographic dividend, increased purchasing power with consumers, Rapid urbanization Increased in commercial/residential construction, Growing Healthcare, Increased awareness of hygiene and safety, Growing automobile, increased infrastructure investments, organized retail sector Increased focus on Technical Textiles

Threats

Competing with other progressing countries like China. Striking a balance between the quality and price of products.

Satisfying the demands of people all across the globe and at the same time, steadily improving the quality of the products. Striking a balance between demand and supply. Environmental and international labor laws. Removal of quota system will fluctuate the export demand.

Internal Control and their Adequacy:

The company has an adequate system of internal controls commensurate with the size and nature of business. The company is complying with all the mandatory requirements of Corporate Governance as laid down in the Listing Agreement. This has improved the management of the affairs of the company and strengthened transparency and accountability. The Audit Committee reviews the internal control system and look into the observations of the statutory auditor very closely.

Discussions on Financial performance:

The financial performance of the Company for the year has been discussed in the Directors Report and Cash Flow Statement annexed with the Annual Accounts.

Developments in Human Resources:

The Company has potential appraisal systems for identifying and developing talent of Employees. The Company is confident of attracting, developing and nurturing the best talent in the industry in view of the companys inherent strengths gained over the years. As in the past, the Company has enjoyed cordial relations with the employees at all levels.

Cautionary Statement:

Statements in the Management Discussion and Analysis describing the companys present position, objectives, expectations or predictions may be "forward looking" statements within the meaning of applicable laws and regulations.

		For and on behalf of the Board
Date: 30.05.2017	Sd/-	Sd/-
Place: Kolkata	AjayKumar Gupta	Deepa Hetal Hakani
	Managing Director	Director
	DIN: 03181399	DIN: 07155347