Maa Jagdambe Tradelinks Ltd Management Discussions

Overall Review

The Indian textile industry is one of the largest and most dynamic sectors in the world. With its rich cultural heritage and diverse production capabilities, India is poised to become a global textile leader by 2025. As we move into the future, several key trends and innovations are shaping the trajectory of the industry. This article explores the Indian textile industrys outlook for 2025, focusing on growth prospects, emerging trends, and the role of sustainability and technology.

Market Overview

Increasing Global Demand for Textiles India is positioned as a leading supplier of textiles globally. By 2025, the industry is expected to see significant growth in exports, driven by increasing demand in key markets such as the United States, Europe, and the Middle East. Indias textile exports are projected to reach $45 billion by 2025. This growth is driven by Indias competitive manufacturing costs, skilled labor force, and the push to strengthen its export-friendly policies.

Sustainability and Eco-friendly Practices As the world moves toward sustainability, the Indian textile industry is embracing eco-friendly manufacturing practices. Sustainable textiles, organic fibers, and eco-friendly dyes are expected to become standard by 2025. The rise of sustainable brands and an increase in consumer awareness around eco-conscious products are prompting Indian manufacturers to adopt green technologies. Moreover, India is focusing on circular economy principles, recycling, and waste reduction in textile production.

Government Initiatives and Policy Support The Indian government is playing a pivotal role in transforming the textile sector through various schemes such as the Production Linked Incentive (PLI) Scheme for Textiles and the National Textile Policy. These initiatives aim to boost manufacturing, exports, and job creation. By 2025, the government plans to enhance the competitiveness of the Indian textile industry, especially in high-value-added segments like technical textiles and apparel.

Indian textile industry - SWOT analysis:

A SWOT analysis is a widely used method in market research that helps organizations gain insights into their operating environment, enabling them to make informed decisions and develop effective strategies. It provides a structured approach to assess both internal and external factors that impact a companys performance and identify areas for improvement.

Strengths:

a) Basic raw materials: The strong point of India is that, it is very self-sufficient in raw materials, especially when it comes to natural fibers. It is seen that, the third- largest cotton crop in the world is grown in India. The speciality of Indian textile industry is that, all types of fibres are produced and handled here.

b) Labour: The Indian apparel and textile industry has long been supported by low-cost labour and strong entrepreneurial abilities.

c) Adaptability: The garment industrys predominately small-scale manufacturing gives for more flexibility in handling more specific and smaller orders.

The textile sector in India offers a number of advantages. The first is the accessibility of inexpensive labour. According to facts, the country has highly skilled labour available for very little money, which lowers the cost of production. India has a lot of raw materials available, which helps to minimise costs and shorten lead times. Resources including jute, cotton, silk, and cotton yarn, as well as man-made fibres, are particularly abundant in India. Another highlight area of India is its large diversity of cotton fibres that stands India apart from other nations. They go on to say that the textile as well as garment sector in India is very self-reliant one. From the acquisition of raw materials through the creation of completed items, it has a whole value chain.

Weakness

a) Increased reliance on cotton: Due to over-concentration on cotton, the majority of the global market is ignored, synthetic products are expensive in India, and the fabric needed for items like swimwear, skywear, and industrial gear is comparatively scarce.

b) The Spinning Sector: The spinning industry has to adopt new technologies because it is not modernized.

c) The Weaving Sector: India has a comparatively small number of looms without shuttles. Opportunity

a) Increased Industry: By 2010, the global textile market would increase at a rate of 3-4%, reaching $200-210 billion.

b) Market entry via bilateral negotiations: Due to bilateral agreements between participating nations, trade between regional trade blocs is expanding.

c) Information technology integration: In the production of clothing, "Supply Chain Management" and "Information Technology" are essential. The availability of EDI (Electronic Data Interchange) facilitates quick, simple, transparent communication and minimizes duplication.

d) The Possibility of High-Value Items: India has the chance to raise its UVRs (Unit Value Realization) through rising up the value chain, creating value-added goods, and developing a steadily growing number of technologically advanced goods.

Threats

a) Decline in the fashion cycle: The number of seasons per year has increased, shortening the cycle of fashion as a result.

b) Formation of Trading Blocks: The world trade environment has changed as a result of trading blocs like NAFTA, SAPTA, etc. If there were bilateral agreements, Indian exports would suffer significantly.

c) Phasing out of Quotas: India would have to expose its closed local market to global competitors, which will hurt the domestic market.

Segment-wise/Product-wise Performance

Your Company has only one reporting segment.

Internal Control System and their Adequacy:

The internal control systems have been designed to effectively and efficiently handle the dynamic and complex nature of business operations of the Company. The internal control systems and environment are commensurate to the scale and volumes of the business with adequate segregation of roles and responsibilities. The executives of the Company keep themselves abreast with the detailed documentation of its policies and SOPs, which are regularly reviewed and updated by the management. The statutory auditors of the Company critically review the internal control environment to arrive at their opinion about the financial performance of the Company.

The Company also has a strong internal audit framework as approved by the Audit Committee which ensures detailed coverage of the processes and systems needed to safeguard its assets, prevention and detection of errors and frauds, ensure accuracy and completeness of accounting transactions thus enabling timely preparation of reliable financial information. The various committees of the board, including the Audit Committee, periodically review the observations and recommendations of the internal auditors to further improve the systems and processes.

Safety, Health and Environment

Your Company as a matter of policy gives greater importance to safety, health and environment and also ensures compliance with applicable legislative requirements.

Human Resources

People are our key pillars of strength. This belief was further strengthened as our people showed tremendous resilience and extraordinary commitment during the pandemic times to bring the Company back to its core performance. The Company firmly believes that Human Capital is its most important asset.

Key Financial Ratios:

In accordance with the Securities and Exchange Board of India (Listing Obligations and disclosures Requirements) Regulations 2018 (Amendment) Regulations, 2018, the Company is required to give details of significant changes in Key sector-specific financial ratios.

The ratio of current year is not comparable with previous year since there was no business activity in current year due to unfavorable market conditions in the textile industry.

Cautionary Statement:

The report contains forward looking statements describing expectations, estimates, plans or words with similar meaning. Your Companys results may differ depending on various factors. Your Company cannot guarantee that the assumptions and estimates in the forwardlooking statements are accurate or will be realized.