Manomay Tex India Ltd Management Discussions

The management discussion and analysis report provide an over view of the financial and Business activities for the fiscal year ended on 31st March 2026. This report is designed to focus on current years activities, resulting changes and other known facts in conjunction to the financial and strategic position of the Company.

## Global Economic in Crosscurrents of War and Technology:-

Global growth is projected to be 3.0 percent in 2026 and 3.4 percent in 2027, down from the average of 3.5 percent observed in 2024-25 and broadly unchanged on a cumulative basis compared with the forecasts in the April 2026 World Economic Outlook (WEO). The modest slowdown reflects the effects of the war in the Middle East being partly offset by accelerated demand-driven momentum in the global technology cycle thanks to advances in artificial intelligence (AI) and its adoption. The impact varies widely based on countries exposure to the war and position in the technology value chain. Energy exporters outside the conflict zone benefit from favorable terms of trade, whereas economies plugged into the technology-led upturn experience stronger activity even if they are energy importers. In contrast, activity weakens for energy importers with limited participation in the technology value chain, a group that includes many low-income countries. Global headline inflation is expected to increase from 4.1 percent in 2025 to 4.7 percent in 2026 before declining to 3.9 percent in 2027. Slightly revised upward from April, these projections indicate that the disinflation trend in place since the beginning of 2024 has stalled.

Risks to the outlook are more balanced than in April but still tilted to the downside. The possibility of renewed Middle East conflict looms large and could extend commodity price volatility, further threaten supply chains, raise prices, and weigh on financial conditions. Trade fragmentation could accelerate, possibly hurting output and increasing prices. A possible correction in technology-driven expectations adds to the downside risks, whereas eroded policy buffers can amplify those risks. Upside risks stem from a swifter-than-expected normalization in energy markets, stronger-than-expected technology investment, a revival of durable cooperation that lowers trade barriers, and structural reform that raises medium-term growth. Policy priorities are restoring price stability, supported by clear communication, central bank independence, and strong financial oversight, while rebuilding fiscal buffers and using fiscal tools sparingly through temporary, targeted support that preserves price signals. Structural reforms are needed to promote energy security, AI readiness, domestic rebalancing, and international cooperation should be strengthened to relieve the strain of ongoing tensions.

[Source:chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/ https://www.imf.org//media/files/ publications/weo/2026/update/july/english/text.pdf]

[Image: India map with economic indicators]

India continues to record rapid growth compared with other major economies. The National Statistical Oces second advance estimates, released in February 2026, project real GDP growth at 7.6% for 2025-26, up from 7.1% in 2024-25. Nominal GDP is projected to grow by 8.6%. Economic activity remains supported by multiple sectors. Services and construction continue to contribute meaningfully, alongside steady domestic demand. Rural demand is also improving, supported by agricultural output and sustained government spending.

At the same time, macroeconomic stability remains within policy targets. Inflation has moderated and stays within the Reserve Bank of Indias tolerance band of 4% (±2%), aided by easing price pressures and supply-side measures. The Union Budget 2026-27 reinforces this trajectory, maintaining focus on infrastructure development, manufacturing support, and MSME financing, signalling policy continuity. Collectively, these factors keep India among the fastest-growing major economies.

[Source: https://www.indiabudget.gov.in/economicsurvey/ ]

## Industry Overview:

## Global Textile Industry

The global textile and apparel market continues a sustained structural growth trajectory, adeptly navigating shifting trade policies, evolving regulatory environments, and the rapid onset of digital and green transformations. Driven by rising middle-class populations in emerging economies, the ongoing evolution of fast-fashion into more agile, on-demand supply models, and a booming e-commerce ecosystem, the market is expanding robustly. Agility and adaptability have become the ultimate competitive advantages.

Furthermore, consumer awareness regarding environmental sustainability has transitioned from a niche, premium preference to a central, non-negotiable pivot for the mass industry.

Regulatory frameworks, particularly the Carbon Border Adjustment Mechanism (CBAM) in the EU and stringent US sourcing laws, are increasingly mandating transparent and ethical manufacturing practices, effectively penalising high-carbon supply chains. Simultaneously, the industry is witnessing the rapid adoption of Industry 4.0 models. Advanced digital manufacturing, AI-driven supply chain optimisation to predict demand and minimise deadstock, 3D garment design, and the commercialisation of smart textiles are significantly enhancing productivity.

These technological advancements are reducing time-to-market while enabling the development of new, high-margin functional apparel categories.

[Source: https://www.thebusinessresearchcompany.com/report/textile-global-market-report ]

## Indian Textile Industry

The Indian textile and apparel (T&A) industry stands as a historic and contemporary pillar of the national economy. It seamlessly blends traditional craftsmanship with modern, large-scale automated manufacturing. Valued at approximately USD 179 Billion, the sector is a significant economic contributor, accounting for around 2% of GDP, 11% of manufacturing GVA, and over 8% of total exports. Recent government surveys highlight robust growth, with the domestic textiles market expanding at an 8.3% CAGR. During this period, per capita textile demand has tripled, reflecting sustained momentum driven by rising incomes and evolving lifestyle preferences.

Indias deeply rooted legacy across the textile value chain remains globally unmatched. The country offers a comprehensive raw material base, spanning natural fibres such as cotton, jute, and silk, alongside rapidly expanding capacities in synthetic and regenerated blends. This end-to-end integration positions India advantageously within the ongoing China Plus One sourcing shift.

Global brands are no longer seeking mere back-ups; they now prioritise scalable, compliant manufacturing ecosystems to mitigate supply chain risks. Supported by favourable demographics, a large domestic market, and strong policy tailwinds, Indian manufacturers are steadily modernising infrastructure and scaling operations to strengthen their global position.

[Source: https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2222927r=3&lang=1 ; https://textilesprehendia.com/2026/02/03/from-disruption-to-dominanceandian-textiles-navigating-2025-andshaping-2026/ ]

[Image: Cotton yarn spools]

## Cotton Yarn Industry:

Despite the rapid rise of synthetics, India retained its leadership as a premier global cotton producer. For 2025-26, the Cotton Association of India (CAI) revised output estimates upwards to 320.5 Lakhs bales (170 kg each). This increase reflects improved crop prospects, favourable climatic conditions during sowing, and higher yields in key states driven by advanced pest management.

Amid these developments, the domestic spinning industry experienced stable demand throughout the year. This was supported by normalised raw material availability, which curbed the extreme price volatility seen earlier, alongside a strong revival in downstream garmenting. Consequently, improved cotton price stability enabled spinning mills to operate at higher capacity utilisation. This, in turn, helped manufacturers sustain better operational spreads and margins. Further

strengthening the sector, initiatives such as the Kasturi Cotton Bharat programme are enhancing global acceptance, traceability, and premium positioning of Indian cotton. Simultaneously, Indias skilled labour base, cost efficiencies, and integrated spinning ecosystem continue to reinforce the competitiveness of its cotton yarn exports.

[Source: https://www.fibre2fashion.com/ news/raw-material-price-news/cai-revisesindia-s-2025-26-cotton-output-upward-to-320-5-lakh-bales-309089-newsdetails.htm ]

## Future Outlook of The Cotton Yarn Industry

India is the worlds second-largest producer of textiles and garments.

The Indian textile industry is one of the oldest and most important sectors in the country, contributing significantly to its economic growth and employment. The industry has come a long way from its traditional roots, embracing modern technologies and practices to stay competitive in the global market, focusing on key factors such as the demand for cotton yarn, the buying and selling of yarn, and the effect of technology on the industry.

contributing significantly to its economic growth and employment. The industry has come a long way from its traditional roots, embracing modern technologies and practices to stay competitive in the global market, focusing on key factors such as the demand for cotton yarn, the buying and selling of yarn, and the effect of technology on the industry.

Indias textile industry is a strong economic driver, offering employment and notable revenue. It covers fibers, yarns, fabrics, and apparel, making India a major global manufacturing hub. Fueled by great resources, skilled labor, and supportive policies, the sector has seen great growth amid growing local and global demands.

Cotton is the most widely used fiber in India, accounting for a large portion of the textile industrys raw material requirements. The country is known for its high-quality cotton production, which has made it a preferred sourcing destination for many global textile players.

Indias textiles sector is one of the oldest industries in the Indian economy, dating back to several centuries. The industry is extremely varied, with hand-spun and hand-woven textiles sectors at one end of the spectrum, while the capital-intensive sophisticated mills sector on the other end. The fundamental strength of the textile industry in India is its strong production base of a wide range of yarns from natural fibres like cotton, jute, silk and wool, to synthetic/man-made fibres like polyester, viscose, nylon and acrylic.

The Indian textile industry has traditionally been dominated by small and medium enterprises (SMEs). However, in recent years, there has been a change towards joining, with larger corporations investing in modern manufacturing facilities and adopting advanced technologies.

One of the key factors driving this transformation is the growing adoption of technology in the industry. Automation, artificial intelligence, and data analytics are revolutionizing textile manufacturing, leading to increased efficiency, productivity, and quality. These technological advancements also enable manufacturers to offer customized and personalized products, catering to the evolving demands of consumers.

The Indian cotton yarn industry in 2026 faces a recovery driven by stable demand, improving export volumes, and modernizing spinning units, though tempered by regulatory and raw material cost pressures.

## Key Market Trends

Export Recovery: Exports have shown positive momentum after rebounding late last year, aided by steadier global intake and stronger finishes in international shipments.

Quality Focus: Buyers increasingly demand premium, contamination-free, and high-tensile strength yarn counts to meet strict international standards.

Modernization: Mills are investing in automated, energy-efficient spinning machinery to enhance productivity and lower long-term operating costs.

## Industry Challenges

Margin Pressures: Reduced export incentive benefits (such as cuts in RoDTEP rates) have squeezed net exporter margins.

Supply Volatility: Ongoing fluctuations in domestic raw cotton prices and international market uncertainties threaten consistent profitability.

## Current Trends Shaping the India Cotton Yarn Market

The cotton yarn market is evolving due to several interconnected factors. Rather than being driven solely by production capacity, the market is increasingly influenced by sustainability, innovation, and global trade patterns.

Some of the most significant trends include:

Growing preference for premium-quality yarn Increased investment in automated spinning technology Rising exports to emerging textile hubs Higher focus on energy-efficient manufacturing Expansion of value-added yarn production Stronger adoption of sustainable production practices

These developments are helping Indian manufacturers improve efficiency while meeting the changing expectations of international buyers.

[Image: Cotton field]

Cotton:-

India is the largest producer of cotton globally, accounts for 23% of total global cotton production. It is a crop that holds significant importance for the Indian economy and the livelihood of Indian cotton farmers. Cotton grows over 13.06 million hectares in India compared to 33.1 million hectares globally. The Indian cotton industry provides livelihood to about 60 million people in the country.

Apart from being the provider of a basic necessity of life i.e. clothing which is next only to food, cotton is also one of the largest contributor to Indias net foreign exchange by way of exports in the form of raw cotton, intermediate products such as yarn and fabrics to ultimate finished products in the form of garments, made ups and knitwear. Due to its economic importance in India, it is also termed as White-Gold.

Majority of the cotton production comes from ten major cotton growing states, which are grouped into three diverse agro-ecological zones, as under: Northern Zone: Punjab, Haryana and Rajasthan. Central Zone: Gujarat, Maharashtra and Madhya Pradesh. Southern Zone: Telangana, Andhra Pradesh, Karnataka and Tamil Nadu.

Cotton Association of India (CAl) has released its latest estimate of Indias total cotton pressing numbers for 2025-26 season, which began on 1st October, 2025. The CAl Crop Committee met on Thursday, the 12th March 2026 virtually which was attended by 21 members representing various cotton growing regions of the country. Based on the input received from the members of eleven cotton growing state associations and other trade sources, the CAl Crop Committee has estimated cotton pressing of each state for 2025-26 season and also drawn cotton balance sheets till the end of February 2026 and also till end of ongoing crop year 2025-26 on 30th September 2026. The statewise break-up of cotton pressing numbers as well as balance sheets drawn by the CAl Crop Committee at the above meeting are enclosed.

The following are the salient features of the CAl Crop Report:-

## Cotton Pressing

As per the latest report submitted by upcountry associations and trade sources at the above CAl Crop Committee meeting, CAls total cotton pressing estimate of the country for 2025-26 season has been increased by 3.50 lakh bales to 320.50 lakh bales of 170 kgs. each (equivalent to 336.33 lakh running bales of 162 kgs. each) +/- 3% from 317.00 lakh bales of 170 kgs. each (equivalent to 332.65 lakh running bales of 162 kgs. each) estimated earlier.

The changes made in the state-wise cotton pressing numbers compared to those estimated previously are given below: -

(In lakh bales of 170 kgs. each)

States	Increase (+)/ Decrease (-)
Punjab	-0.50
Upper Rajasthan	-0.50
Lower Rajasthan	-0.50
Maharashtra	+4.00
Andhra Pradesh	+1.00
TOTAL	+3.50

The Committee members will have a close watch on the cotton pressing numbers in the subsequent months and if any addition or reduction is required to be made in the pressing estimates, the same will be made in the CAI reports of the subsequent months.

## Consumption

CAI has increased Indias total cotton consumption during 2025-26 i.e. upto 30th September 2026 by 10.00 lakh bales to 315.00 lakh bales of 170 kgs. each (equivalent to 330.56 lakh running bales of 162 kgs. each) from 305.00 lakh bales of 170 kgs. each (equivalent to 320.06 lakh running bales of 162 kgs. each) estimated earlier. Total cotton consumption estimated by the CAI during the ongoing crop year 2025-26 is higher by 1 lakh bales than 314.00 lakh bales of 170 kgs. each (equivalent to 329.51 lakh running bales of 162 kgs. each) estimated during last year.

Upto 28th February 2026, cotton consumption is estimated at 131.25 lakh bales of 170 kgs. each (equivalent to 137.73 lakh running bales of 162 kgs. each).

## Imports

The CAI has reduced its estimate of cotton imports into India during 2025-26 season by 3.00 lakh bales to 47.00 lakh bales of 170 kgs. each (equivalent to 49.32 lakh running bales of 162 kgs. each) from 50.00 lakh bales of 170 kgs. each (equivalent to 52.47 lakh running bales of 162 kgs. each) estimated earlier.

The cotton imports estimated by the CAI for the ongoing 2025-26 season are higher by 6.00 lakh bales of 170 kgs. each than 41.00 lakh bales of 170 kgs. each estimated for the last year.

Upto 28th February 2026, about 36.00 lakh bales of 170 kgs. each (equivalent to 37.78 lakh running bales of 162 kgs. each) are estimated to have arrived the Indian ports.

## Exports

The CAI has maintained its cotton exports estimate for the 2025-26 season at 15.00 lakh bales of 170 kgs. each (equivalent to 15.74 lakh running bales of 162 kgs. each), against 18.00 lakh bales of 170 kgs. each (equivalent to 18.89 lakh running bales of 162 kgs. each) estimated for 2024-25 season.

Up to 28th February 2026, about 7.00 lakh bales of 170 kgs. each (equivalent to 7.35 lakh running bales of 162 kgs. each) are estimated to have been shipped by the country.

## Total Cotton Supply

Total cotton supply till end of the 2025-26 season i.e. upto 30th September 2026 is estimated at 428.09 lakh bales of 170 kgs. each (equivalent to 449.23 lakh running bales of 162 kgs. each) as against the last years total supply of 392.59 lakh bales of 170 kgs. each (equivalent to 411.98 lakh running bales of 162 kgs. each). The total cotton supply estimated for the ongoing 2025-26 crop year consists of the opening stock of 60.59 lakh bales of 170 kgs. each (equivalent to 63.58 lakh running bales of 162 kgs. each) at the beginning of the season on 1st October 2025, cotton pressing numbers for the season estimated at 320.50 lakh bales of 170 kgs. each and imports for the season estimated at 47.00 lakh bales of 170 kgs. each.

Total cotton availability till end February 2026 is estimated at 357.55 lakh bales of 170 kgs. each (equivalent to 375.21 lakh running bales of 162 kgs. each) and the same consists of the opening stock of 60.59 lakh bales at the beginning of the season on 1st October 2025, cotton pressing estimated at 260.96 lakh bales of 170 kgs. each upto 28th February 2026 and imports of 36.00 lakh bales estimated till end February 2026.

## Available Surplus

Total available surplus (i.e. total supply of 428.09 lakh bales less total domestic demand estimated at 315.00 lakh bales of 170 kgs. each) works out to 113.09 lakh bales of 170 kgs. each (equivalent to 118.67 lakh running bales of 162 kgs. each) at the end of 2025-26 season i.e. upto 30th September 2026 as against the last years available surplus of 78.59 lakh bales of 170 kgs. each (equivalent to 82.47 lakh running bales of 162 kgs. each).

## Closing Stock As At 30th September 2026

The closing stock at the end of 2025-26 season on 30th September 2026 is reduced by 9.50 lakh bales to 98.09 lakh bales of 170 kgs. each (equivalent to 102.93 lakh running bales of 162 kgs. each) from 107.59 lakh bales of 170 kgs. each (equivalent to 112.90 lakh running bales of 162 kgs. each) estimated earlier. It is higher by 37.50 lakh bales of 170 kgs. each from the closing stock of 60.59 lakh bales of 170 kgs. each (equivalent to 63.58 lakh running bales of 162 kgs. each) for the previous year on 30th September 2025.

The closing stock as on 28th February 2026 is estimated at 219.30 lakh bales of 170 kgs. each (equivalent to 230.13 lakh running bales of 162 kgs. each), which consists of 75.00 lakh bales of 170 kgs. each (equivalent to 78.70 lakh running bales of 162 kgs. each) with textile mills and 144.30 lakh bales of 170 kgs. each (equivalent to 151.43 lakh running bales of 162 kgs. each) with CCI, Maharashtra Federation, MNCs, Ginners, Traders, etc. including cotton sold but not delivered.

[Source: https://caionline.in/cai/press/details/29 ]

## Government Grants and Policies:

Government policies play an important role in shaping the future of the textile industry in India. The government has recognized the potential of the industry and has implemented various policies to promote its growth and competitiveness in the global market. Also, the government has announced incentives and tax breaks to promote exports and attract foreign investment in the textile sector. These policies aim to boost Indias exports and position it as a global textile hub.

Pivotal government policies and initiatives are steering the future of Indias textile industry. Key programs like Make in India are fostering an ecosystem of innovation and investment. Additionally, the textile policy and the production-linked incentive scheme aim to boost competitiveness and attract investments. At the same time, the Technical Textiles Mission seeks to promote advanced textile applications in various sectors. The governments plans for 75 textile

hubs, skill development programs, and encouragement of FDI and JVs further contribute to the industrys growth, supporting innovation, productivity, and global competitiveness.

The government has been implementing various policy initiatives and schemes to encourage cotton spinning millers in the country, including the announcement of key reforms under a Special Package. the introduction of fixed-term employment for the apparel sector. Under the Market Access Initiative (MAI) Scheme, the government offers rebates on state and central taxes and levies that are integrated into production, as well as aid to exporters. Schemes like SAMARTH (Scheme for Capacity Building in the Textile Sector) aim to address the shortage of skilled workers in the textile sector with a target of training 10 lakh people. The Cott-Ally mobile app was created to help farmers by providing information on minimum support prices (MSP), locating nearby procurement centers, tracking payments, sharing best farming practices.

Bharat Tex 2026:

[Image: Bharat Tex 2026 logo]

The 3rd edition of Bharat Tex 2026 successfully concluded its four-day run from July 14 to July 17, 2026, cementing its status as Indias premier global integrated textile trade mega-event. Organised by the Bharat Tex Trade Federation (BTTF) alongside a consortium of Export Promotion Councils with direct support from the Ministry of Textiles, the expo transformed Bharat Mandapam (Pragati Maidan), New Delhi into a massive global textile hub.

The landmark industry event was driven by the Prime Ministers 5F Vision-encompassing the full ecosystem from Farm to Fiber to Factory to Fashion to Foreign markets.

## Historic Scale and Turnout:-

Exhibitor Presence: Hosted 1,647 exhibitors covering over 1.6 million square feet of space to showcase advanced technologies and more than 20,000 unique products.

Global Buyer Volume: Attracted 11,315 total buyers (including 6,090 high-level international buyers) and ministerial delegations representing 138 countries.

Business Traffic: Welcomed nearly 95,000 domestic trade visitors and recorded over 28,500 highly focused Business-to-Business (B2B) networking sessions.

## Major Financial Outcomes:-

Investment Commitments: The mega expo catalysed major local growth by securing roughly 14,300 crore in total textile investment commitments.

State-Level Growth MoUs: Over 30 Memorandums of Understanding (MoUs) were officially locked down by partner states. Leading state-led job creations included:

Andhra Pradesh: 4,100 crore. Karnataka: 2,821 crore (generating an estimated 11,020 local jobs). Bihar: 1,476 crore (pledging over 40,500 jobs). Maharashtra: 1,095 crore.

Trade Order Value: Generated serious, actionable global business inquiries valued at approximately $2.8 billion.

## PLI Scheme:

The Production Linked Incentive (PLI) Scheme for Textiles by the Ministry of Textiles targets ManMade Fibre (MMF) apparel, MMF fabrics, and technical textiles. As of March 2026, the scheme has approved 170 companies nationwide, mobilized 8,117.64 crore in investments, and created over 33,000 jobs.

## Key Focus Areas and Goals:-

Target Segments: Production of MMF apparel, MMF fabrics, and technical textile items.

National Reach: 170 approved beneficiary companies driving manufacturing scale.

Support System: Weekly open-house sessions and monthly workshops hosted by the government to resolve operational hurdles.

## Recent Progress and Impact:-

Investment & Employment: Generated cumulative investments totaling 8,117.64 crore and over 33,400 new jobs up to March 2026.

Regional Growth: States like Maharashtra account for 24 approved units with 167.51 crore in localized investments.

MSME Engagement: Revised guidelines and lowered thresholds have increased smaller enterprise participation in recent rounds.

## Rajasthan Investment & Promotion Scheme (RIPS):

The Rajasthan Investment Promotion Scheme (RIPS) treats the textile sector as a core thrust area, providing specialized financial perks like capital investment subsidies, up to 75% SGST reimbursement, and complete stamp duty exemptions to accelerate manufacturing and exports. Backed by the Rajasthan Textile and Apparel Policy framework, a dedicated state-level textile cell coordinates these benefits.

## Core Financial Incentives:-

SGST Reimbursement: Up to 75% return on State GST paid on commercial operations.

Stamp Duty Waiver: 100% exemption on land purchase or lease documents for unit setup.

Capital and Interest Support: Direct assistance on asset creation and term loans under joint composite packages.

## Operational & Infrastructure Support:-

Duty Exemptions: Relief on electricity tariffs and complete waiver of standard land conversion charges.

Dedicated Cell Access: Streamlined single-window clearances and technological upgrade guidance via the newly formed state textile cell.

Hub Development: Targeted infrastructure pushes across key local industrial regions like Bhilwara, Jaipur, Pali, and Balotra.

Remission of Duties or Taxes on Export Product (RoDTEP):

[Image: Export-related illustration]

# RODTEP SCHEME

The Remission of Duties or Taxes on Export Product (RoDTEP) scheme has been extended until September 30, 2026, with full benefit rates restored following a brief reduction. It refunds embedded central, state, and local taxes to make Indian exports competitive.

## Key Updates and Extension

Validity: Extended through September 30, 2026, via DGFT Notifications to support global trade challenges.

Rate Restoration: Full rates and value caps from February 22, 2026, were restored in March 2026, canceling an earlier 50% temporary cut.

Incentive Range: Rebates generally range between 0.3% and 3.9% of the Free On Board (FOB) value of eligible products.

## Eligibility and Coverage

Sectors: Covers over 10,000 items spanning engineering, textiles, chemicals, and other manufactured goods.

Entity Types: Available to Domestic Tariff Area (DTA) units, Advance Authorisation holders, Export Oriented Units (EOUs), and Special Economic Zone (SEZ) units.

Mode of Benefit: Issued electronically as transferable duty credit scrips managed through the ICEGATE portal.

PM Mitra Parks:

[Image: PM MITRA Parks graphic]

The PM MITRA (Pradhan Mantri Mega Integrated Textile Region and Apparel) scheme in 2026 focuses on reducing production costs and fast-tracking the operationalization of Indias seven approved mega textile parks. The overall scheme runs until 2027-28 with a total budget layout of ?4,445 crore.

The primary policy focus in 2026 shifts heavily toward infrastructure updates, lowering high logistics overheads, and integrating green energy.

## Key 2026 Developments & Announcements:-

Union Budget 2026-27 Expansion: The Finance Minister introduced a new model for Setting up of Mega Textile Parks in Challenge mode to create additional value-addition hubs, specifically targeting technical textiles.

Warangal Park Inauguration: On May 10, 2026, Prime Minister Shri Narendra Modi Ji officially inaugurated the PM MITRA Park in Warangal, Telangana. Spanning 1,327 acres, it has already secured over ?3,862 crore in initial investment commitments.

Advanced Carbon Fibre Hub: In July 2026, a Memorandum of Understanding (MoU) was signed to establish Indias first 120 TPA Carbon Fibre Technology Demonstration Plant at the Amravati park in Maharashtra, anchoring technical textile growth.

Logistics & Clean Energy: Execution focus in 2026 aims to eliminate the 14-16% production cost disadvantage against global competitors by integrating captive renewable energy zones inside the park premises.

SAMARTH:

[Image: SAMARTH scheme graphic]

The SAMARTH (Scheme for Capacity Building in Textile Sector) updates for 2026 highlight the extension of this major employment-focused initiative. In the latest Union Budget, the Central Government integrated the scheme into the broader 1,500 crore Integrated Programme for Textile Sector as SAMARTH 2.0, extending operations with a fresh skilling target.

The key objective of the program is to address the skilled labor shortage in the organized textile sector while offering free, industry-aligned training programs.

## Core Structural & Budgetary Updates:-

Extended Operational Timeline: The Ministry of Textiles extended the active timeline of the scheme, confirming that the current direct allocation phase runs through March 31, 2026, to complete remaining targets.

SAMARTH 2.0 Integration: The scheme has evolved under a 1,500 crore comprehensive textile development budget block to accelerate technological readiness.

Total Beneficiaries Reached: As of mid-2026, the official dashboard reported that over 6,00,000 individuals have been successfully trained across 4,270 active regional empanelled training centres.

High-Impact Placements: The initiative maintains a strict mandatory placement benchmark requiring centers to secure formal employment for at least 70% of certified graduates.

## Kasturi Cotton Bharat:

The Kasturi Cotton Bharat initiative in 2026 anchors Indias strategy to position its domestic cotton as a premium, eco-conscious global brand. Overseen by the Ministry of Textiles alongside TEXPROCIL and the Cotton Corporation of India, the program focuses on strict quality standards, absolute digital traceability, and sustainability to meet strict new international trade regulations like the EUs environmental compliance laws.

## Major 2026 Core Developments & Announcements:-

Cabinet Approval of Cotton Mission: In May 2026, the Union Cabinet officially cleared the 5,659 crore Mission for Cotton Productivity. This mega-budget initiative formally integrates Kasturi Cotton Bharat as its central verification pillar to aggressively target clean production by reducing trash parameters below 2%.

Showcase at Bharat Tex 2026: Held from July 14-17, 2026, at Bharat Mandapam, New Delhi, the initiative launched massive promotional setups. The event brought together over 6,000 global buyers from 130 countries, introducing them to verified downstream products like premium yarns, fabrics, and home luxury items crafted exclusively from certified Kasturi lint.

Global E-Commerce Drive: To expand marketplace access, the initiative has partnered with major channels like Amazon Global Selling to onboard regional exporter hubs (such as the Karur home textiles cluster) directly into international direct-to-consumer networks.

## Global Outlook:

Cotton Yarn Market Size 2026 And Growth Rate:

The global cotton yarn market size in 2026 is valued between $82.89 billion and $93.11 billion, depending on sectoral tracking methods. The market is experiencing steady long-term growth, expanding at a Compound Annual Growth Rate (CAGR) between 4.0% and 7.2% over the forecast windows.

This momentum is fueled by a global rise in e-commerce apparel distribution, growing demand for breathable/eco-labeled fabrics, and substantial investments in advanced spinning technologies.

## Key Market Valuations & Projections (2026):

Global Market Cap Range:

According to Fortune Business Insights, the global market is projected to reach $93.11 billion in 2026 from $89.54 billion in 2025, charting a 4.0% CAGR through 2034.

Parallel industry data from Research and Markets values the 2026 global market at $82.89 billion, tracking a 7.0% CAGR to reach $108.82 billion by 2030.

Another evaluation by SkyQuest Technology clocks the broader forecast window at a 7.2% CAGR.

India Regional Volume: Indias internal domestic cotton yarn market size alone is expected to reach $20.18 billion in 2026, solidifying its position as a major cornerstone of global supply.

## Core Segment Shares in 2026:

Data indicates that mass-scale textile workflows and evolving buyer demographics continue to govern segment layouts:

By Type (Carded Yarn): The Carded Yarn segment dominates the landscape with a 58.24% global market share in 2026. Its lower production costs relative to premium combined yarn make it the primary choice for mass clothing lines.

By Application (Apparel): The Apparel segment commands a 65.85% market share in 2026. This segment is primarily sustained by Gen Z and millennial consumer spending patterns, rising global disposable incomes, and deep e-commerce marketplace penetration.

By Region (Asia-Pacific): The Asia-Pacific framework holds absolute dominance, projected to reach $75.69 billion in 2026. The region captured an 81.20% global market share at the start of the current cycle, heavily anchored by fast-scaling output out of China ($33.62B) and India ($20.18B).

## Strategic Multi-Year Growth Drivers:

Infrastructure & Automation: Spinning mills are fast-tracking capital investments into high-speed automated spinning technologies to bypass traditional manual labor overheads and improve energy efficiency.

Traceability Mandates: Stringent international ESG laws (such as the EUs environmental compliance frameworks) are forcing supply chains to transition toward authenticated, clean cotton lints logged via digital tracking engines.

Material Advancements: Increasing commercial adoption of specialized recycled yarn configurations and premium organic long-staple threads is creating lucrative avenues within high-end technical and home textile applications.

## Definition of Denim

Denim is a sturdy cotton twill fabric, typically in blue colour, which is used to make jeans, jackets, and other clothing commonly. It is known for its durability, versatility, and timeless appeal, making it a popular choice in the fashion industry.

[Image: Denim apparel]

## India Denim Market Report Coverage:-

Categories Covered:- Mass, Premium, Luxury. Types Covered:- Pure Denim, Blended Denim. End Uses Covered:- Apparel and Accessories, Homecare and Decor, Others. Regions Covered:- North India, South India, East India, West India.

## Importance of Denim in Fashion Industry

Denim has been a staple in the fashion industry for decades, transcending generations and cultures. It can be attributed to its ability to blend comfort, style, and functionality. Denim garments are versatile and can be dressed up or down, making them a good choice for many fashion items.

## Historical Perspective of Denim in India

Denims journey in India dates back to the early 20th century when it was introduced as workwear for laborers and miners. However, it wasnt until the 1980s that denim gained widespread popularity in the country, largely due to the influence of Western fashion and the emergence of global denim brands.

The liberalization of the Indian economy in the 1990s further fueled the growth of the denim market, leading to an influx of international brands and the establishment of domestic denim manufacturing units. This period marked a significant shift in the perception of denim from a utilitarian fabric to a fashion statement, driving its integration into mainstream Indian fashion.

The adoption of denim as a fashion staple was also influenced by the entertainment industry, with Bollywood playing a pivotal role in popularizing denim as a symbol of modernity and youth culture. The portrayal of denim-clad actors and actresses in movies and advertisements contributed to its aspirational appeal, further cementing its position in the Indian fashion landscape.

## Current Scenario of the Indian Denim Market

The Indian denim market in 2026 is experiencing robust expansion, valued at an estimated $2.8 billion to $5.4 billion, and is driven by organized retail growth, rising youth consumption, and a strong push toward sustainable manufacturing. India stands as the worlds second-largest denim fabric producer, yielding over 1,600 million meters annually.

## Market Size and Growth

Estimated 2026 Value: Around USD 2.81 billion specifically for denim jeans, with broader industry estimates reaching up to USD 9.15 billion inclusive of fabrics and local production.

Growth Rate (CAGR): Projected at 8.3% through 2033 or steady regional expansions around 6.36%

Per Capita Consumption: Low consumption average of roughly 0.4 pairs per person annually, indicating high room for domestic expansion compared to Western markets.

## Consumer Trends

Consumer Trends Consumer preferences in the Indian denim market have evolved, reflecting a shift towards more fashion-forward and sustainable choices. While traditional denim styles remain popular, there is a growing demand for innovative designs, eco-friendly production processes, and customized denim products. The rise of e-commerce platforms and social media influence has also contributed to the democratization of fashion, allowing consumers to explore and adopt diverse denim styles and trends.

## E-commerce platform:-

E-commerce platform:- The Company Have its e-commerce platform, offering products such as denim formal pants, jeans, shorts, cargos, and lowers and etc. This marks a significant strategic shift from being a leading denim fabric manufacturer to a vertically integrated fibre-to-fashion entity, enhancing value capture across the supply chain.

E-Commerce Platform Link:- https://manomayindia.in/home

Factors Driving the Growth of the Indian Denim Market

## Changing Fashion Trends

The Indian denim market is heavily influenced by evolving fashion trends, with consumers seeking denim products that align with contemporary styles and preferences. The introduction of new washes, finishes, and silhouettes in denim apparel reflects the industrys response to changing fashion sensibilities. For instance, the popularity of distressed and vintage-inspired denim has surged among the younger demographic, driving the demand for such products in the market.

## Increasing Disposable Income

Increasing Disposable Income Rising disposable incomes among the Indian middle class have contributed to the growing demand for branded denim products. As consumers become more discerning about quality and style, they are willing to invest in premium denim offerings that offer superior fit, comfort, and durability. This shift towards premiumization has led to the expansion of the mid-to-high-end denim segment, presenting opportunities for both established and emerging denim brands to cater to this segment of the market.

## Influence of Western Culture

The influence of Western culture, particularly through media, entertainment, and digital channels, has played a pivotal role in shaping consumer preferences in the Indian denim market. Western denim trends and lifestyle aesthetics have permeated Indian fashion, inspiring a fusion of traditional and contemporary denim styles. This cross-cultural exchange has led to the adaptation of global denim trends to suit the Indian market, resulting in a diverse range of denim products that resonate with the countrys dynamic fashion landscape.

The convergence of these factors underscores the dynamic nature of the Indian denim market, presenting opportunities for brands to innovate, diversify their product offerings, and engage with a discerning consumer base. As the market continues to evolve, the interplay of fashion, lifestyle, and cultural influences will shape the trajectory of the Indian denim industry.

## Challenges and Opportunities in the Indian Denim Market

## Sustainability Concerns

The Indian denim market is increasingly confronted with sustainability challenges, as consumers and regulatory bodies emphasize the need for eco-friendly and ethical practices in the fashion industry. The denim manufacturing process, particularly the dyeing and finishing stages, has been associated with environmental concerns such as water pollution and chemical usage. In response to these challenges, several denim brands and manufacturers are adopting sustainable practices, including the use of organic cotton, water-saving technologies, and eco-friendly dyes.

## Technological Advancements

Technological advancements have significantly impacted the Indian denim market, revolutionizing the production processes and product innovations. From advanced weaving technologies to automated garment finishing systems, the integration of technology has enhanced the efficiency, quality, and customization capabilities of denim manufacturing.

## Future Outlook of the Indian Denim Market

The future of the Indian denim market is poised for continued growth and evolution, driven by a confluence of factors such as changing consumer preferences, technological advancements, and sustainability imperatives. As the industry embraces digitalization and sustainable practices, there is immense potential for innovation and differentiation in denim product offerings. The integration of smart technologies, such as wearable sensors and performance-enhancing fabrics, presents opportunities for denim brands to cater to the growing demand for functional and tech-infused apparel. Furthermore, the emphasis on circular economy principles and the development of eco-friendly denim alternatives are expected to shape the future landscape of the Indian denim market, aligning with global sustainability goals and consumer expectations.

The evolving fashion landscape, coupled with the rise of conscious consumerism, will drive the demand for responsibly produced denim products, prompting brands to adopt transparent and ethical practices throughout their supply chains. The convergence of fashion, technology, and sustainability will define the trajectory of the Indian denim market, offering prospects for brands to

innovate, collaborate, and create value-driven solutions that resonate with the discerning consumer base.

## India denim jeans market highlights

Market Size: Valued at around USD 2.4 billion initially, heading toward USD 3,859.5 million by 2030.

Growth Rate: Expanding at a compound annual growth rate (CAGR) of about 8% to 8.3%.

Global Position: Recognized as one of the fastest-growing major denim sectors in the Asia-Pacific region.

## Conclusion

In conclusion, the Indian denim market has undergone a remarkable transformation, evolving from its utilitarian origins to become a symbol of style, versatility, and cultural expression. The markets growth trajectory is underpinned by changing consumer dynamics, technological advancements, and a renewed focus on sustainability. As the industry navigates through challenges and opportunities, denim brands and manufacturers must adapt to the evolving landscape, embrace innovation, and prioritize sustainable practices. By doing so, the Indian denim market can continue to thrive, offering a diverse range of denim products that resonate with the dynamic fashion sensibilities of consumers, both domestically and globally.

## Company Overview and Our Success Story and Future Plans

The Company was founded on April 13, 2009, as a private limited company called Manomay Tex India Private Limited, and it was later converted to a public limited company on January 6, 2017.

The Company primarily manufacture and sell denim fabrics in domestic and international markets and have an integrated production operation in Rajasthan (India) and the Company trading Denim Garments in the name & Style Manomay - Indias First Denim CoreWear Brand.

The Company has ventured into 18+ overseas markets, and customer base is currently distributed across India and International Markets such as South America, the Middle East, and Asia. In the textile sector, we are known and recognized by the BRAND NAME MANOMAY.

Manomay Tex India Limited primarily manufactures and sells denim fabrics in domestic and international markets and we have our integrated Denim production operation at Aaraji No. 5,6,7 Gram-Jojo Ka Khera Tehsil - Gangrar Dist- Chittorgarh - 312901(Rajasthan) India & Spinning production operation at Aaraji No. 983, 989, 990, 991, 992/1568,993/1570, Village - Undawa, TehsilGangrar, Distt Chittorgarh - 312901 Rajasthan (India).

In the textile sector, we are known and recognised by the brand name MANOMAY. Our world-class facilities are anchored by a robust infrastructure that helps us increase the productivity of our operations, employees efficiency and consistency of product quality. Our Denim Plant in Gangrar Tehsil, Chittorgarh district, Rajasthan, (India) makes denim ranging from 9 to 14 Sq. yd.

Over the years our Company has carved its footprints in the industry which can be witnessed by the growth in our total revenue from Rs. 5.75 Crores in FY 2010 to Rs. 710.70 Crores in FY2026. Our promoters have adequate experience in the line of business and look after the strategic as well as day to day business operations. Our brand has been well received until now and we shall continue to endeavour to build brand equity by supplying qualitative products at competitive prices.

In the Year 2025 Manomay Tex India Limited has undertaken a forward integration initiative by entering the denim apparel segment under its own consumer brand, Manomay - Indias First Denim CoreWear Brand.

## E-commerce platform:-

The Company Having its e-commerce platform, offering denim products such as denim formal pants, jeans, shorts, cargos, and lowers. This marks a significant strategic shift from being a leading

denim fabric manufacturer to a vertically integrated fibre-to-fashion entity, enhancing value capture across the supply chain.

E-Commerce Platform Link:- https://manomayindia.in/home

## SWOT Analysis

## Strengths

## Integrated Production Facility:

Our Denim production facility in Aaraji No.5, 6, 7 Gram-Jojo ka Khera Tehsil- Gangrar, Dist.:- Chittorgarh - 312901 Rajasthan (India) and Spinning production facility in Aaraji No. 983, 989, 990, 991, 992/1568, 993/1570, Village - Undawa, Tehsil- Gangrar, Distt Chittorgarh - 312901 Rajasthan (India) an integrated facility, allowing us to carry out all operations in-house.

## Sustainable Business Model:

We have been able to create a sustainable business model thanks to the constant efforts and experience of our management team.

## Advantage of Location:

Our major Denim manufacturing site is in Aaraji No.5, 6, 7 Gram-Jojo ka Khera Tehsil- Gangrar Dist: Chittorgarh - 312901 Rajasthan (India) and Spinning production site is in Aaraji No. 983, 989, 990, 991, 992/1568, 993/1570, Village - Undawa, Tehsil- Gangrar, Distt Chittorgarh - 312901 Rajasthan (India) which are approx. 30 kilometres from Bhilwara and is well connected to National Highways and a Railway Station. Bhilwara is also one of the textile industrys hubs, allowing for the processing of raw materials with ease and at a low cost. Because of the established Textile Industry, such a site significantly improves our marketing operations and adds value to our earnings.

## High Quality Products:

We strive to have the lowest tolerance for any manufacturing defect, which has helped us retain current customers and will help us develop new ones.

## Existing relationship with the clients:

Since we are engaged in B2B business model, our existing client being traders provides us repeated orders. We trust that our existing relationship and goodwill amongst our traders serves as a competitive advantage in gaining new clients and increasing our business with existing clients.

## Experienced Management:

many years of professional and business expertise along with qualified technical personnel who have immense knowledge of their work and thrive towards the success of the company.

## Weakness

An increase in mid-market / value shops has a detrimental influence on higher-end retailers and increases the potential to offer lower-end brands. Price fluctuations to keep up with changing demands and trends. Scarcity of trained labour. An increase in unit cost, as well as high tariff barriers and export penalties. Indias denim industry struggles primarily with high raw material costs, global oversupply, and fierce export competition.

## Opportunity

The Indian denim industry represents a multibillion-dollar market, driven by a massive demographic shift and a low per-capita consumption of just 0.4 pairs annually. Major opportunities lie in capturing the rural and Tier-II/III domestic retail booms, scaling apparel

exports to replace China, and adopting eco-friendly, sustainable manufacturing. Urbanization is expected to support higher growth due to change in fashion and trends.

Growing Middle-Class and Urbanization Indias growing middle class and rapid urbanization present significant opportunities for the denim industry. As disposable incomes rise and urban areas expand, more consumers are turning to fashion as a means of self-expression. Expansion of Denim Exports India has long been a key player in the global denim supply chain, and this position is expected to strengthen in the coming years. The demand for Indian-made denim is growing in international markets, particularly in the US and Europe.

## Threats

The Indian denim industry faces severe threats including intense global competition from lowcost hubs like Bangladesh and Vietnam, raw material volatility (especially cotton prices), massive overcapacity leading to compressed margins, and strict global sustainability regulations that demand expensive eco-friendly and water-efficient manufacturing upgrades. High Competition: The market is saturated with established brands. When competitors offer cheaper prices, it is difficult to strike a balance between price and quality. Due to pollution concerns, certain factories in China and Europe have been shut down, resulting in a spike in the price of basic raw materials. There are also other factors influencing raw material supply, unpredictable market conditions, weather, policies, and other factors have resulted in an increase in raw material costs.

Financial Performance and Analysis

Sr. No.	Particulars	YEAR ENDED 31-03-2026 Audited	YEAR ENDED 31-03-2025 Audited
I	Revenue from operations	71,070.33	69,691.73
II	Other Income/(Loss)	151.19	148.67
III	Total Revenue (I+II)	71,221.52	69,840.40
IV	Expenses
a.	Cost of Materials Consumed	40,462.65	42,658.39
b.	Changes in Inventories of Finished goods, Stock-In-Trade and Work-In-Progress	2,006.53	(2,217.84)
c.	Employee Benefits Expenses	3,489.29	3,629.49
d.	Finance Cost	3,078.07	3,180.16
e.	Depreciation, Amortization and Impairment Expenses	2,908.27	2,939.97
f.	Other Expenses	16,675.09	17,062.88
	Total Expenses	68,619.90	67,253.05

V	Profit/(Loss) before Exceptional Items and Tax (III-IV)	2,601.62	2,587.35
VI	Exceptional Items	0.00	0.00
VII	Profit Before Tax (V-VI)	2,601.62	2,587.35
VIII	Tax Expenses Current Tax	662.18	672.54
	Earlier Year	(5.82)	0.00
	Deferred Tax	(18.86)	(10.46)
IX	Profit/(Loss) for the Period from Continuing Operations (VII-VIII)	1,964.12	1,925.27
X	Other Comprehensive Income/(Loss), Net of Income Tax
A	Items that will not be reclassified to Profit or (Loss)	37.98
B	Items that will be reclassified to Profit or (Loss)	(51.52)
	Total Other Comprehensive Income / (Loss), Net of Income Tax	(13.54)	(5.48)
XI	Total Comprehensive Income for the period, Net of Tax (IX+X)	1,950.58	1,919.79
XII	Paid-up Equity Share Capital (Face Value of Rs. 10/- each)	1,804.87	1,804.87
	Total Reserves i.e. Other Equity	15,291.38	13,013.03
XIII	Earnings / (Loss) per equity share in Rupees (in \u20b9) (For Continuing Operations)
	(a) Basic (in \u20b9)	10.88	10.67
	(b) Diluted (in \u20b9)	10.88	10.67

Revenue from Operation of Rs.71,070.33 lakhs as compared to Rs. 69,691.73 lakhs in the previous year which showed a Increase by 1.98%. Profit after tax of the company has been increase from Rs. 1,925.27 Lakhs to 1,964.12 lakhs Rs. which showed an increase by 2.02%.

Other Income: Other income of Rs. 151.19 lakhs as compared to Rs. 148.67 lakhs in the previous year which showed a Increase by 1.70%.

EBITDA: The (EBITDA) Rs. 8,587.96 lakhs for the financial year 2025-26 and Rs. 8,707.49 lakhs for the financial year 2024-25.

Following are the ratios showing performance in FY 2026:

Particulars	Numerator	Denominator	As at March 31, 2026	As at March 31, 2025
Current Ratio	Current Assets	Current Liabilities	1.37	1.40
Debt equity Ratio	Total Debt	Shareholders equity	2.03	2.22
Debt Service Coverage Ratio (DSCR)	PAT+Depreciation & Interest on Term Loan	Current Maturities of long term debt	3.15	3.16
Return on Equity (ROE) %	Profit After Tax	Average shareholders equity	12.31	12.99
Inventory Turnover Ratio	Revenue from Operations	Average Inventory	3.19	3.66
Trade Receivables Turnover Ratio	Revenue from Operations	Average Trade Receivables	4.43	4.95
Trade Payables Turnover Ratio	Purchases*	Average Trade Payables	4.03	4.27
Net Capital Turnover Ratio	Revenue from operations	Total Equity, Long Term Borrowing & Short Term Borrowing	1.37	1.46
Net Profit %	Profit After Tax	Revenue From Operations	2.76	2.76
Return on Capital Employed (ROCE) %	Profit Before Interest Tax (PBIT)	Capital Employed**	11.41	12.10
Return on Investment (ROI) %	Investment income	Average investments	NA	NA

*Purchases include Purchase of Raw Material, Store & Spares, Packing Material and Chemical. ** Capital Employed include Average of Total Equity, Long Term Borrowing & Short-Term Borrowing.

Liquidity: ( Rs.In Lakhs)

Particular	For the period ended 31-03-2026	For the period ended 31-03-2025
Net cash generated from Operating Activities (A)	2,593.80	415.47
Net cash used in Investing Activities (B)	(1,584.10)	(320.45)
Net cash generated from Financing Activities (C)	(1,002.81)	(177.85)
Net increase/decrease in cash (D= A+B+C)	6.89	(82.83)
Cash and cash equivalents at the beginning (E)	38.65	121.48
Cash and cash equivalents at the end (F= D+E)	45.54	38.65

## Segment wise Performance:

The Management reviewed the disclosure requirement of segment wise reporting and is of the view that since the Companys products are covered under Textile Industry which is single business segment in terms of Indian Accounting Standards (Ind AS) Notified under the Companies (Indian Accounting Standards) Rules,2015 and therefore separate disclosure on reporting by business segment (product wise) is not required.

## Internal Control System and their adequacy:

Internal Control System and their adequacy: The Company considers that internal control is one of the keys supports of governance which provide freedom to the management within an outline of appropriate checks and balances. Our Company has a strong internal control framework, which was instituted considering the size, nature and risk in the business. The Companys internal control environment provide assurance on efficient conduct of operations, security of Assets, prevention and detection of frauds/errors, accuracy and completeness of accounting records, timely preparation of authentic financial information and compliance with applicable laws and regulation. The Internal Auditor is responsible to conduct regular internal Audit and report to the management the lapses, if any and submit Report on periodic basis to the Board of Directors for their review and comments. Fully professional and experienced boards as mentioned in the corporate overview section in itself ensures efficient internal control. The system and process are continuously improved by adopting best in class processes, automation and implementing latest IT tools.

## Risk Management:

The Company is exposed to specific risks that are particular to its business and environment within which it operates, including Foreign Exchange Risk, Interest Rate Risk, Commodity Price Risk, Risk of Product Concentration and other Business Risk. While risk is an inherent aspects of any business, the Company is conscious of the need to have an effective monitoring mechanism and has put in place appropriate measure for its mitigation including business portfolio risk, financial risk and legal risk and internal process risk.

The list of the potential risks the industry is exposed to domestically/internationally are given below:

## Business Operational Risk:

Business Operational Risk: The business operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events like economic and market conditions, cut throat competitions at local as well as at international level, introduction of new players in textile markets, even events which are not directly connected with the organization like natural disasters, political and military turmoil etc. It can be minimized by decreasing labor turnover, power cost, logistics, balancing demand & supply risks, implementing latest technologies to create new and innovative designs of textile products, techniques required to upgrade plants, boiler house, machines, equipment, Un-interrupted availability of raw material at competitive prices so as to avoid production loss, maintenance of quality and harmonizing production for completing the orders in time as well.

## Raw Material Risk:

Raw Material Risk: There is always a risk of volatility in the prices of cotton, transportation cost etc. which could impede business profits and prospects.

## Manufacturing Risk:

Manufacturing Risk: Our Denim production facility at Aaraji No. 5, 6, 7 Gram- Jojro ka Khera Tehsil- Gangrar, Dist.- Chittorgarh - 312901 Rajasthan (India) and Spinning production facility at Aaraji No. 983, 989, 990, 991, 992/1568, 993/1570, Village - Undawa, Tehsil- Gangrar, Distt Chittorgarh - 312901 Rajasthan (India), are vulnerable to operational risks such as machinery unavailability, breakdown, obsolescence, or failure, disruption in power supplies or processes, performance below projected levels of efficiency, and labor disputes. Our machines have finite lifespan as well as annual over hauled maintenance. Replacement parts for such machinery may not be available in the case of a breakdown or failure, and such machinery may have to be sent for repairs or servicing.

## Quality Risk:

Our products are influenced by consumer expectations, customer preferences, and fashion industry trends. Failure to maintain our product quality standards may have an impact on our business. Even though we have strict quality control methods in place, we have deployed lab testers to ensure that our products will always meet our clients quality standards.

## Foreign Exchange / Currency Risk:

We are certainly vulnerable to foreign currency exchange rates, which could have a major unfavorable effect on our operating results and financial situation. Our company has recently expanded into international markets and now sells products both domestically and internationally. Exporting our goods allows us to acquire foreign exchange gains and outgo in terms of FOB value. The exchange rate between the Rupee and other currencies fluctuates and may continue risk in our revenue. Any adverse or unexpected swing in the exchange rate of any foreign currency to Indian Rupees for businesses in order to correctly hedge their positions with international institutions may have an impact on our Companys results of operations.

## Competition Risk:

We confront competition in our industry from both organized and unorganized companies, which could have a negative impact on our business operations and financial situation. Furthermore, we are primarily located in Gangrar Dist- Chittorgarh and Bhilwara (Rajasthan) (India), which is regarded as the nations textile heartland, with a large textile business in an unorganized sector, particularly on a small and medium size. There are numerous major corporations in the textile business, which adds to the competitiveness for companies like us. We largely compete based on quality, client happiness, and marketing. We think that to compete effectively, we must preserve our reputation, be flexible and timely in responding to quickly changing market demands and consumer preferences and provide customers with a diverse range of textiles at competitive rates.

## Customer Concentration Risk:

Any fall in revenue, rising competition, or change in demand for our services by these clients may have a detrimental effect on our ability to keep them. However, the mix and income generated by these clients may alter as we continue to add new customers in the normal course of business. Over time, our company and management have been able to retain and strengthen these business connections. We believe that we may not have anticipated significant obstacles in continuing our commercial relationship with them or obtaining new consumers.

## Global Risk:

We do not have an offshore office or company location where we can manage our export operations. Our products are sold in both domestic and foreign markets. However, because we lack an offshore office, we may be unable to capitalize on opportunities presented by the evolving worldwide garment market and our consumers in a timely manner. Our companys operations are managed from its registered office at Bhilwara (Rajasthan) (India), and Primary Manufacturing facilities Denim production operation at Aaraji No. 5,6,7 Gram- Jojo Ka Khera Tehsil- Gangrar Dist- Chittorgarh -312901(Rajasthan) India & Spinning production operation at Aaraji No. 983, 989, 990, 991, 992/1568,993/1570, Village - Undawa, Tehsil- Gangrar, Distt Chittorgarh -312901 Rajasthan (India). Our company does not have a corporate office or a place of business in another country, but we have recruited agents in other countries to handle our business operations. As a result, we may be able to efficiently extend our business in the foreign market, resulting in higher operational outcomes and profitability.

## Political Risk:

Political risk may be defined as the probability that a political event will impact adversely on a firms profit. It represents the financial risk that a countrys government will suddenly change its policies.

## Technological Risk:

Technology can response corporate culture and facilitate innovative procedures. In a garment manufacturing industry, the firm is constantly required to make changes and transformations in the production process over time, upgrade their machinery besides creating new facilities and additional capacities in order to survive in the highly competitive market.

## Human Resource Development/Industrial Relation:

The Company rely that the health and safety of the workers and the persons residing in the vicinity of its plants is fundamental to the business. Commitment to the identification and elimination or control of the workplace hazards for protection of all is utmost importance. The manufacturing operations are conducted to ensure sensitivity towards the environment and minimize waste by encouraging Green practices. The Company continued to enjoy healthy industrial relations during the year.

## Environment & Health and Safety:

The need for environmentally clean and safe operations is companys key priority.

Health and Safety measures play an important role in any industry. It is essential that the workers be aware of the various occupational hazards in the industry. At the same time, it is necessary that the management take the necessary steps to protect workers from potential hazardous situations.

The Company continues to accord the highest priority to health and safety of its employees & etc. and communities it operates in. The Company has been fully committed to comply with all applicable laws and regulations and maintains the highest standard of Occupational Health and Safety and ensures safer plants by conducting safety audits, risk assessments and periodic safety awareness campaigns and training to employees. We believe in good health of our employees. Modern occupational health and medical services are accessible to all employees through well-equipped occupational health centers at manufacturing units. The Company has always considered safety as one of its key focus areas and strives to make continuous improvement on this front. The company believes Health & Safety as an indispensable province. Company has provided appropriate facilities for all workers and employees like proper lighting, ventilation, no congestion, medical kits, stretchers, fire extinguishers etc. at prominent places. Personnel at supervisory level have been trained in basic life support techniques.

## Infrastructure:

The company is equipped with modern infrastructure facilities which assist in smooth production. The companys manufacturing unit is outfitted with advanced machines and equipment and a trained staff, who have years of experience behind them. To sell products to the clients, the company has facilitated a smooth transportation mechanism through a strong base of transporters and traders.

## Social Responsibility Issues for the Company (CSR):

As a part of society, the company covers certain thrust areas such as Making Available Safe Drinking Water, Tree Plantation, Ensuring Environmental Sustainability, Promoting Education, Eradicating Hunger, Poverty and Malnutrition, Promoting Health care including Preventive Health Care, Sanitation, Empowering Women, livelihood Enhancement Projects, Training to Promote Rural Sports, Ecological balance, animal welfare, promotion and development of traditional art and handicrafts and Promoting Religious Activities & Social Welfare & Social Evils etc. Which are in accordance with CSR Policy of the Company and Schedule VII of The Companies Act,2013. For this our company has developed a CSR scheme and spends at least 2% of its average profit since last three years, every year.

## Cautionary Statement:

The above Management Discussion and Analysis contains certain forward looking statements within the meaning of applicable security laws and regulations. These pertain to the Companys future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and

uncertainties relating to these statements include, but are not limited to, important factors that could make a difference to the Companys operations which include finished goods prices, raw materials costs and availability, global and domestic demand supply conditions, fluctuations in exchange rates, changes in Government regulations and tax structure, economic developments within India and the countries with which the Company has business contacts, fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, fiscal deficits, regulation etc. In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time on behalf of the Company. The Company assumes no responsibility in respect of the forward looking statements herein, which may undergo changes in future based on subsequent developments, information or events.

Place: Bhilwara (Rajasthan) India Date:31.08.2026

FOR & ON BEHALF OF THE BOARD OF DIRECTORS MANOMAY TEX INDIA LIMITED

SD/- Kailashchandra Hiralal Laddha (Chairman) DIN:01880516

SD/- Yogesh Laddha (Managing Director) DIN:02398508

SD/- Pallavi Laddha (Whole Time Director) DIN:06856220