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 2025. 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 Overview

The year 2024 began with confidence that inflation was largely beaten and that major economies would likely avoid recession. Those expectations were correct. However, as the year ended, it became increasingly clear that inflation remained more persistent than anticipated. And while the United States experienced strong growth, most other advanced economies did not. Moreover, as the year ended, many economies including India experienced currency depreciation, which could potentially become disruptive especially for emerging market economies.

As 2025 begins, there is some uncertainty due to the likely shift in policy following numerous elections around the world. New policies could lead to new trajectories for inflation, borrowing costs, and currency values, as well as trade flows, capital flows, and costs of production. Meanwhile, governments and central banks continue to navigate a balance between a desire to suppress inflation and a goal to boost growth.

The global economy exhibited steady yet uneven growth across regions in 2024. A notable trend was the slowdown in global manufacturing, especially in Europe and parts of Asia, due to supply chain disruptions and weak external demand. In contrast, the services sector performed better, supporting growth in many economies. Inflationary pressures eased in most economies. However, services inflation has remained persistent.

Despite global uncertainty, India has displayed steady economic growth. Indias real GDP growth of

6.4% in FY25 remains close to the decadal average.

Indias GDP growth slowed to 6.0% year over year in the first half of fiscal year 2024 to 2025, significantly below the Reserve Bank of Indias (RBI) projection of 6.9%. Consequently, the central bank lowered its annual growth forecast to 6.6% from 7.2%. The first advanced estimate by the Central Statistical Office pegs growth to be 6.4%. The slowdown was primarily driven by a moderation in gross fixed capital formation, which grew by 6.4% in the first half, as capital expenditure utilization fell to 37.3%, down from 49% last year. This decline was attributed to the elections in the first quarter and weather-related disruptions in the subsequent quarter.

Additionally, geopolitical disruptions, particularly in the Red Sea, Bangladesh Political Instability and rising global trade disturbances including US tariff implications impacted the trade balance adversely.

On the production side, gross value added grew by 6.2% in the first half of the fiscal year, down from 8.0% in the same period last year. Performance in the secondary sector remained weak at 6%, but the farm and service sector demonstrated resilience.

Despite the overall economic slowdown, several sectors managed to sustain positive momentum, highlighting pockets of strength within the economy. These sectors played a critical role in supporting growth amid external and domestic pressures. • Rural consumption: Agricultural growth hit a five-quarter high of 3.5%, driven by strong monsoons, healthy kharif (or monsoon or autumn crops) harvests, and improved Rabi (winter crops) sowing in the second quarter. Indicators like sales growth in fast-moving consumer goods and a lower number of jobs demanded under the Mahatma Gandhi

National Rural Employment Guarantee Act of 2005 reflect rural consumption strength this fiscal year. • Services: Services grew 7.1% in the first half of the fiscal year, with a large contribution coming from the financial, real estate, and professional services sectors. Services exports also surged 12.8% year over year, reaching US$248 billion from April to November 2024, with November exports reaching the highest levels ever. This shows the rising significance of services to growth and urban income. • High-value manufacturing exports: With the support of government schemes, Indian manufacturing is moving up the value chain. Electronics, engineering goods, and chemicals now make up 31% of exports, supported by contributions from micro, small, and medium enterprises and rising credit availability. • Fiscal deficit control: At 3.1% of GDP in the second quarter, the fiscal deficit remains manageable, with government spending on capex expected to rise significantly in the second half of the year to meet annual targets.

Indian Economy Scenario

The Economic Survey 2024-25 notes that agriculture growth remained steady in first half of FY25, with Q2 recording a growth rate of 3.5 %, marking an improvement over the previous four quarters. Healthy "Kharif" production, above-normal monsoons, and an adequate reservoir level supported agricultural growth. The total "Kharif" food grain production is estimated at a record 1647.05 lakh metric tonnes (LMT) in 2024- 25, higher by 5.7 % compared to 2023-24 and 8.2 % higher than the average food grain production in the past five years.

The industrial sector grew by 6 % in first half of FY25, and is estimated to grow by 6.2 % in FY25. Q1 saw a strong growth of 8.3 %, but growth moderated in Q2 due to three key factors. First, manufacturing exports slowed significantly due to weak demand from destination countries, and aggressive trade and industrial policies in major trading nations. Second, the above average monsoon had mixed effects - while it replenished reservoirs and supported agriculture, it also disrupted sectors like mining, construction, and, to some extent, manufacturing. Third, the variation in the timing of festivities between September and October in the previous and current years led to a modest growth slowdown in Q2 FY25.

Despite various challenges, India continues to register the fastest growth in manufacturing PMI, stated the Survey. The latest Manufacturing PMI for December 2024 remained well within the expansionary zone, driven by new business gains, robust demand, and advertising efforts.

The services sector continues to perform well in FY25, emphasizes the Survey. A notable growth in Q1 and Q2 resulted in 7.1 % growth in first half of FY25. Across sub-categories, all the sub-sectors have performed well. Indias services export growth surged to 12.8 % during April November FY25, up from 5.7 % cent in FY24.

The Economic Survey states that growth process has been ably supported by stability on fronts such as inflation, fiscal health, and external sector balance. On inflation, the Survey states that retail headline inflation has softened from 5.4 % in FY24 to 4.9 % in April December 2024. Food inflation, measured by the Consumer Food Price Index (CFPI), has increased from 7.5 % in FY24 to 8.4 % in FY25 (April- December), primarily driven by a few food items such as vegetables and pulses. Indias consumer price inflation will gradually align with the target of around 4 % in FY26 as per RBI and IMF.

The Survey observes that stability in the banking sector is underscored by declining asset impairments, robust capital buffers, and strong operational performance. The gross non-performing assets (NPAs) in the banking system have declined to a 12-year low of 2.6 % of gross loans and advances. The capital-to-risk-weighted assets ratio (CRAR) for Schedule Commercial Banks stands at 16.7 % as of September 2024, well above the norm, says the Survey.

Textiles & Indian Economy

The Indian Textile and Apparel Industry;

• plays a crucial role in Indias economic growth, boosting exports, creating jobs, empowering women and showcasing Indias rich heritage and culture. • The industry contributes nearly 2% to the countrys GDP, 10% to industrial production, and 8.21 % to Indias overall exports.

• In terms of Global trade, India is the sixth largest exporter of textiles, with a 3.91% share in World Textile exports. • The domestic textile and apparel production is approximately US$175.7 billion. Exports accounted for US $ 35.87 bn to the sector (2023-24).

The textile sector is highly labour intensive. Overall the sector provides direct employment to over 45 million people, including a large number of women and the rural population. This makes it the second largest employment generator in the country, next only to agriculture. The sector also has perfect alignment with the Governments overall objectives of Make in India, Skill India, Womens

Empowerment, Rural Youth Employment and inclusive growth.

The textiles and apparel industry in India has strengths across the entire value chain from fiber, yarn, fabric to apparel. The Indian textile and apparel industry is highly diversified with a wide range of segments ranging from products of traditional handloom, handicrafts, wool, and silk products to the organized textile industry in India. The organized textile industry in India is characterized by the use of capital-intensive technology for the mass production of textile products and includes spinning, weaving, processing, and apparel manufacturing.

The global cotton yarn market size is projected to grow from $86.11 billion in 2024 to $117.79 billion by 2032, at a CAGR of 4.0% during the forecast period.

Our country has a share of 3.9% of the global trade in textiles and apparel. Major textile and apparel export destinations for India are USA and EU and with around47% share in total textile and apparel exports. India is a major textile and apparel exporting country and enjoys trade surplus. Bulk of import takes place for re-export or for industry requirement of raw material.

It is noteworthy that export is a function of demand and supply and depends on factors such as:-

global demand, internal consumption and demand, order flow, logistics, geopolitical situations (such as red sea crisis, Bangladesh crisis etc.).

Source: DGCIS

Cotton Yarn Industries

Cotton yarn refers to a type of yarn that is made from cotton fibers. It is commonly used in the textile industry to create a wide range of clothing products. Cotton yarn is popular because it is soft, breathable, and comfortable to wear. It can also be dyed in a wide range of colors, making it versatile for various design options.

Cotton yarn is made using natural cotton harvested from the Cotton plant. These yarns are produced using different types of spinning processes. Based on the spinning process used to manufacture cotton yarn, the yarn produced across the globe can be primarily categorized into two types, carded and combed yarns. Different types of yarns have unique characteristics which ultimately influence the type of application it will be employed in and the quality of finished textile goods. For example, combed yarn is produced using high-quality cotton fiber by adding the combing process to the carded yarn.

Combed yarn is a finer and better quality product, making it useful for manufacturing fabrics with premium texture and durability. The majority of cotton yarn produced across the globe is used to manufacture apparels. Currently, consumers and brands are promoting sustainable fashion like never before, and clothing made using cotton yarn is an excellent choice for sustainability.

India has a 4% share of the global trade in textiles and apparel. The textiles and apparel industry contribute 2.3% to the countrys GDP, 13% to industrial production and 12% to exports.

The textile industry has around 45 million of workers employed in the sector, including 3.5 million handloom workers. Indias textile and apparel exports (including handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY.

Total textile exports are expected to reach US$ 65 billion by FY26. The Indian textile and apparel industry is expected to grow at 10% CAGR to US$ 190 billion by 2025-26. The Indian apparel market is expected to reach US$ 135 billion by 2025.

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.

Indias cotton spinning industry is forecast to grow:

• by 12-14 % in financial year 2026 (FY26),

• Cotton yarn exports typically account for approximately 25-35 % of Indias cotton yarn production, while the remaining is accounted for by the domestic market.

India is one of the largest producers of cotton and jute in the world. India is also the 2nd largest producer of silk in the world and 95% of the worlds hand-woven fabric comes from India. The Indian technical textiles segment is estimated at $16 bn, approximately 6% of the global market.

The textiles and apparel industry in India is the 2nd largest employer in the country providing direct employment to 45 million people and 100 million people in allied industries.

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 .

As per Cotton Association of India (CAI), all India total cotton pressing numbers for the 2024-25 season have been estimated at 302.25 lakh bales of 170 kgs. each (equivalent to 317.18 lakh running bales of 162 kgs. each).

As per CAI data,

• the highest cotton yield in India during the last five years was 2.67 bales per hectare in 2019-20 season, the lowest cotton yield during the last five years was 2.42 bales bales per hectare in 2021- 22 season and • the average yield during the last five years was 2.55 bales per hectare. The following are the salient features of the CAI crop report: -

Consumption

CAI has maintained cotton consumption for 2024-25 season at 313 lakh bales of 170 kgs. each (equivalent to 328.46 lakh running bales of 162 kgs. each).

Cotton Pressing

As per the crop report submitted by upcountry associations and trade sources at the meeting of the CAI Crop Committee, there are reports of crop damage due to excessive rainfalls in several cotton growing states. Also the Ministry of Agriculture has reported acreage under cotton to be lower by 10% that last year. Overall, CAI estimates a reduction of 23.04 lakh bales of 170 kgs. each in the pressing numbers for the ongoing season 302.25 lakh bales of 170 kgs. each (equivalent to 317.18 lakh running bales of 162 kgs. each) as against 325.29 lakh bales of 170 kgs. each (equivalent to 341.35 lakh running bales of 162 kgs. each) in last year. The break-up of Zone-wise reduction of 23.04 lakh bales in cotton pressing numbers compared to last year are given below:

Zone	Reduction
North Zone	9.62
Central Zone	11.05
South Zone	1.85
Orissa	0.52
Total Reduction	23.04

Imports

The cotton imports into India are at 25 lakh bales of 170 kgs. each (equivalent to 26.23 lakh running bales of 162 kgs. each) during 2024-25 season as against 17.50 lakh bales of 170 kgs. Each (equivalent to 18.36 lakh running bales of 162 kgs. each) in the last season. The cotton imports for the ongoing crop year 2024-25 are higher by 7.50 lakh bales of 170 kgs. each compared to last year.

Exports

The cotton exports for 2024-25 crop year are at 18 lakh bales of 170 kgs. each (equivalent to 18.89 lakh running bales of 162 kgs. each) as against 28.50 lakh bales of 170 kgs. each (equivalent to 29.91 lakh running bales of 162 kgs. each) in the last season.

The cotton production in India for 2024-25 is slightly lower than the previous year. In India, the lowest cotton production was recorded in 2008- 09 with 29 million bales, according to the Cotton Advisory Board.

Further, the cost of raw cotton, the primary material for cotton yarn, can be subject to fluctuations due to factors such as weather conditions, global supply and demand, and trade policies. In contrast, synthetic fibers used in synthetic yarn, such as polyester or nylon, are derived from petrochemicals, which can be subject to separate supply and price dynamics. Modern synthetic fiber manufacturing processes are highly automated and can achieve economies of scale, which can lead to lower production costs.

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 that includes additional incentives under the Amended Technology Upgradation Fund Scheme (ATUFS), relaxation of Section 80JJAA of the Income Tax Act, and 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:

BHARAT TEX 2025, a global textile mega event organized by a consortium of 11 Textile Export Promotion Councils and supported by the Ministry of Textiles was held from February 14-17, 2025 in New Delhi. Bharat Tex 2025 event was having 5000+ Exhibitors, 12000+ Textile Products, 6000+ Overseas Buyer, 1,20,000+ Trade Visitors and 70+ Knowledge Sessions in a single roof having area of 2,20,000 Sq. Meters with a focus on sustainability and resilient supply chains, it promises to be a tapestry of tradition and technology attracting the best and the brightest from the textile world. It has dedicated pavilions on Sustainability and Recycling, thematic discussions on resilient global supply chains and digitization, interactive fabric testing zones, product demonstrations and master-classes by crafts persons and events involving global brands and international designers. Bharat Tex 2025 was a unique experience for knowledge, business and networking.

PLI Scheme:

The Government has approved the Production Linked Incentive (PLI) Scheme for Textiles with an approved outlay of 10,683 crore over a five year period to promote production of MMF Apparel,

MMF Fabrics and products of Technical Textiles in the country to enable Textile sector to achieve size and scale and to become competitive The Scheme has two parts: Part-1 envisages a minimum investment of 300 crore & minimum turnover of 600 crore per company and Part-2 envisages a minimum investment of 100 crore & minimum turnover of 200 crore per company.

Rajasthan Investment & Promotion Scheme (RIPS):

The Rajasthan Investment Promotion Scheme (RIPS-2022) provides various benefits and subsidies to promote investments in the state. The policy offers several incentives, including exemptions from Stamp Duty and Conversion Charges on land, Capital Subsidy, Interest Subsidy, exemption from Electricity Duty, Investment Subsidy, and Turnover-linked incentives.

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

The government of India introduced a new scheme, named RoDTEP, in September 2019 and released a budget allocated of 500 billion, in a move to replace MEIS and RoSL (only refunds state taxes).

The new scheme is in terms with the conditions of the WTO, where incentives cannot be provided, but the taxes incurred during the process can be refunded. Hence, the government plans to refund all state (RoSL) and Central government taxes incurred by the export players during the manufacturing process of RMG. According to the government, this new scheme would "adequately compensate" for the current 6% (4% MEIS and 2% RMG) benefits being availed of by the RMG exporters and help them stay competitive enough in the international trade market.

PM Mitra:

The Government has launched PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks Scheme to develop world class infrastructure including plug and play facility with an outlay of 4445 crores for a period up-to 2027-28. PM MITRA Parks Scheme are inspired by the 5F vision of Honble Prime Minister - Farm to Fibre to Factory to Fashion to Foreign. Nearly 70,000 crore investment and 20 lakhs employment generation is envisaged. Parks will offer an opportunity to create an integrated textiles value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at a single location. World-class industrial infrastructure would attract cutting edge technology and boost FDI and local investment in the sector. Centre and States to form SPVs for setting up PM MITRA Parks. These parks will be developed in PPP mode.

SAMARTH:

The Government with a view to enhance the skills of the workforce in the textile sector has formulated Samarth Scheme under a broad skilling policy framework with the objective of providing opportunity for sustainable livelihood.

The scheme aims to provide demand driven and placement oriented National Skill Qualification Framework (NSQF) compliant skilling programmes to incentivize and supplement the efforts of the industry in creating jobs in the organised textile sector and related sectors, covering the entire value chain of textiles excluding spinning & weaving and in addition it also provides skilling and skill-upgradation in the traditional textile sectors.

Kasturi Cotton Bharat:

Kasturi Cotton Bharat programme of Ministry of Textiles is a first of its kind branding, traceability and certification exercise carried out jointly by the Government of India, Trade Bodies and Industry to promote Indian Cotton. Stakeholders across the supply chain including farmers, Ginning Units, Spinning Mills, Processing Houses, Weaving Units, Garmenting Units, Home Textile manufacturers and even Retailers and Brands will be involved in a collaborative effort to promote and enhance the value of Indian Cotton across the domestic and overseas markets. To encourage the Trade and Industry to work on the principle of self-regulation by owning complete responsibility of Traceability, Certification and Branding of Kasturi Cotton Bharat, MoU has been signed between CCI on behalf of Govt. of India, Ministry of Textiles and TEXPROCIL.

Other Grants & Incentives:

Scaling-up organic cotton industry:

Cott-Ally mobile app has been developed for farmers to increase awareness about MSP rates, nearest procurement centers, payment tracking, best farm practices etc.

the Tamil Nadu government included a Sustainable Cotton Cultivation Mission in its agriculture budget by allocating US$ 1.86 million ( 15.32 crore) to enhance the yield of organic cotton.

Amended Technology Upgradation Fund Scheme (ATUFS)

The Sustainable Textiles for Sustainable Development (SusTex) project by the United Nations Climate Change entity enhances the employment and working circumstances of textile artisans while promoting the sustainable production and use of environmentally friendly textiles.

Global Outlook

Cotton Yarn Market Size 2025 And Growth Rate:

The cotton yarn market size has grown strongly in recent years. It has grown from $73.46 billion in 2024 to $78.52 billion in 2025 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to textile industry growth, natural fiber preference, global cotton production, cotton yarn innovation, affordability and accessibility.

Cotton Yarn Market Size 2025 And Growth Rate:

The cotton yarn market size is expected to see strong growth in the next few years. It will grow to $103.16 billion in 2029 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to sustainable and organic trend, E-Commerce growth, regulatory emphasis on sustainable practices, demand in emerging markets, circular economy initiatives. Major trends in the forecast period include technology integration in manufacturing, sustainable and organic cotton, technological innovations in spinning processes, digitalization in supply chain management, fluctuations in cotton prices and global trade dynamics.

India aims to achieve a prominent global position in manufacturing and exports of different types of textiles including jute, silk, cotton and wool. India has the potential to increase its textile exports in the next five years. Exports of Cotton yarns are a significant component of Indias export basket, as it plays a vital role in boosting the domestic economy.

Regional Outlook for The Global Cotton Yarn Market:

North America was the largest region in the cotton yarn market in 2024. The regions covered in the cotton yarn market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the cotton yarn market report are Australia, Brazil, China, France, Germany, India, Bangladesh (Cotton Yarn Importer), Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Bangladesh Crisis:

Textile and garment industry of Bangladesh is a vital pillar of its economy that accounts for over 80% of the countrys total export earnings and contributes approximately 11% to the GDP. The industry employs millions of people.

The sector faced a severe crisis due to a volatile mix of political unrest marked by violent protests, and catastrophic floods in August. The situation threatened to unravel the years of growth and global presence of the sector. The unprecedented anti-government protests led to resigning and fleeing of reigning Prime Minister from the country. The political unrest disrupted factory operations as they were forced to close during the peak season of Christmas shipments and the booking of next seasons orders.

India is also a major cotton yarn & Denim products exporter to Bangladesh, and your company has also exported to Bangladesh during the year. However, there has been no impact on the companys payments, and no significant effect has been observed on its operations, as all exports to Bangladesh are made on a 100% Letter of Credit (LC) basis, ensuring full security in the payment terms.

India & Chinas Yarn Markets:

India is one of the largest exporters of both raw cotton and cotton yarn, with a significant portion of its cotton yarn exports concentrated in Bangladesh. Highlighting, Bangladeshs reliance on Indian cotton yarn to support its thriving textile and garment industry. Bangladesh, as a major global hub for garment production, continues to be a key market for Indian yarn.

Other countries, such as Vietnam, also play an important role as garment production centres in Asia. While Vietnam is a notable competitor in the global textile industry, its demand for Indian cotton yarn is not as concentrated as that of Bangladesh. However, Vietnam still contributes to the broader regional dynamics of yarn trade.

In contrast, China has a more diversified export portfolio for cotton yarn, with key markets spread across Pakistan, Bangladesh, and Vietnam. This diversification helps China maintain a steady export flow across multiple regions. However, a key factor influencing Chinas cotton yarn pricing is its strong domestic demand. As one of the worlds largest producers of apparel, Chinas internal demand for cotton yarn is substantial, often driving prices in its domestic market. The high consumption of cotton yarn for domestic apparel production significantly influences both supply and pricing, making local demand a crucial factor in Chinas cotton yarn market dynamics.

Figure 1: Pricing analysis and comparison between India and China

Source: TexPro, F2F Analysis

*E Estimated, F - Forecast

From 2015 to 2027 (forecast), yarn prices in China have generally been higher than those in South

India, ranging between $4 to $6 per kg, while South Indias prices fluctuated from $3 to $6 per kg.

South India consistently maintained a price advantage, particularly in 2015, 2016, 2017, 2019, and

2020, when its prices were consistently $1 lower than Chinas. In 2022, the price gap narrowed, with both regions recording the same price of $5 per kg. Looking ahead, slight variations are expected, but rising energy and labour costs are forecast to increase prices in both regions by 2027, with South

Indias prices projected to surpass Chinas at $6 per kg. Despite this anticipated reversal, South India has historically been the more cost-effective option, attracting buyers with its competitive pricing in the global yarn market.

Strategies:

• Product development for immediate market needs

• Lean Manufacturing- to minimise waste and create more value-oriented products • Building value around the commodity

• Organisational Alignment- clear assignment of duties towards every management personnel for smooth and efficient operations • Energy- sustainable manufacturing and use of energy efficient machinery • Assets Reliability- adopting smart machineries and incorporate artificial intelligence • Exploring existing potential and new product development

Strength:

• Competitive manufacturing costs • Automation and Worlds best technology

• India is the third largest producer of cotton with the largest area under cotton cultivation • Presence of entire value chains • Availability of skilled manpower • Large and growing domestic market

• Rising per capita income, higher disposable incomes and preferences for brands • India has gathered experience in terms of working with global brands • Easy and on-demand availability of credit

Opportunities and Threats:

The textile industry as well as Company will be driven by increasing urbanisation and higher awareness of fashion trends. The future of the industry looks promising backed by Immense growth potential, consumerism, increasing population, affordability, Product development, Government Initiatives for exports, increasing foreign investments and Diversification & rising disposable income.

The threats for the industry and the Company comprises of competition from emerging countries. Pricing pressures on finished goods, inflation, COVID-19 and similar pandemics, foreign exchange fluctuation, International disturbances, Political Instability, High Technological Upgradation Costs, Volatility in input cost, Supply chain disruptions, higher interest rates and power cost among others, comprise the key threats.

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.

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

• Market Size and Growth

The Indian denim market has witnessed significant growth in recent years, driven by factors such as urbanization, changing consumer lifestyles, and increasing disposable income. According to industry reports, the market size of the Indian denim industry is estimated to be around USD 1.5 billion Approx and is expected to continue growing at a steady pace. The demand for denim products in India is fueled by a large and youthful population, with a growing preference for casual and Western-style clothing.

• 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.

Launch E-commerce platform:-

The Company has successfully completed a soft launch of its e-commerce platform, offering 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

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

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

• The India market is expected to grow at a CAGR of 8% Approx from 2025 to 2030.

• Women is the most lucrative end use segment registering the fastest growth during the forecast period.

• The India denim jeans market generated a revenue is expected to reach USD 3,859.5 million Approx by 2030.

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). In the year 2025-26 the Company Entered in trading Denim Garments in the name & Style "Manomay Indias First Denim CoreWear Brand."

The Company has ventured into 16+ 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-Jojro 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).

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, 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. 696.91 Crores in FY2025. 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."

Launch E-commerce platform:-

The Company has successfully completed a soft launch of its e-commerce platform, offering 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- Jojro 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- Jojro 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.

Opportunity

• The Indian textile and apparel (T&A) industry is projected to reach a market size of Approx US$190 billion by fiscal year 2026 (FY26). This growth is fueled by a combination of robust domestic consumption and increasing export opportunities. • Urbanization is expected to support higher growth due to change in fashion and trends.

Threats

• 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 (Rs. In Lakhs)

	YEAR ENDED
. Particulars	31-03-2025	31-03-2024
	Audited	Audited
Income from Operations
I Revenue from operations	69,691.73	58,309.12
II Other Income/(Loss)	148.67	103.34
III Total Revenue(I+II)	69,840.40	58,412.46
IV Expenses
a. Cost of Materials Consumed	42,658.39	40,425.75
b. Changes in Inventories of Finished goods, Stock-In -
Trade and Work-In-Progress	(2,217.84)	(3,080.16)
c. Employee Benefits Expenses	3,629.49	2,453.28
d. Finance Cost	3,180.16	1,782.72
e. Depreciation, Amortization and Impairment Expenses	2,939.97	1,478.80
f. Other Expenses	17,062.88	13,657.99
Total Expenses	67,253.05	56,718.38
V Profit/(Loss) before Exceptional Items and Tax (III-IV)	2,587.35	1,694.08
VI Exceptional Items	-	-
VII Profit Before Tax (V-VI)	2,587.35	1,694.08
VIII Tax Expenses
Current Tax	672.54	303.05
Earlier Year	-	(38.08)
Deferred Tax	(10.46)	128.78
Profit/(Loss) for the Period from Continuing
IX Operations (VII-VIII)	1,925.27	1,300.33
X Other Comprehensive Income/(Loss), Net of Income Tax
A Items that will not be reclassified to Profit or (Loss)	(15.91)	9.73

 

B Items that will be reclassified to Profit or (Loss)	10.43	0.69
Total Other Comprehensive Income / (Loss), Net of Income Tax	(5.48)	10.42
Total Comprehensive Income for the period, Net of XI Tax (IX+X)	1,919.79	1,310.75
Paid-up Equity Share Capital (Face Value of Rs. 10/- XII each)	1,804.87	1,804.87
Total Reserves i.e. Other Equity	13,013.03	11,094.99
Earnings / (Loss) per equity share in Rupees (in ) (For XIII Continuing Operations)
(a) Basic (in )	10.67	7.20
(b) Diluted (in )	10.67	7.20

Revenue from Operation of Rs. 69,691.73 lakhs as compared to Rs. 58,309.12 lakhs in the previous year which showed a Increase by 19.52%. Profit after tax of the company has been increase from Rs. 1,300.33 Lakhs to 1,925.27 lakhs Rs. which showed an increase by 48.06%.

Other Income: Other income of Rs. 148.67lakhs as compared to Rs. 103.34 lakhs in the previous year which showed a Increase by 43.86%.

EBITDA: The (EBITDA) before exceptional items increased by 75.71% at Rs. 8,707.49 lakhs for the financial year 2024-25 as compared to Rs. 4,955.60 lakhs for the financial year 2023-24. On the other hand, the EBITDA Margin has also increased from 8.50% for the financial year 2023-24 to 12.49 % for the financial year 2024-25.

Following are the ratios showing performance in FY 2025:

	Numerator	Denominator	31st March, 2025	31st March, 2024
Current Ratio	Current Assets	Current Liabilities	1.40	1.41
Debt Equity Ratio	Total Debt	Shareholders Equity	2.22	2.32
Debt Service Coverage	Earning for	Debt Service	3.16	1.95
Ratio (DSCR)	Debt Service	Average	0.13	0.10
Return on Equity (ROE) %	Profit After Tax	Shareholders Equity
Inventory Turnover Ratio	Revenue from Operations	Average Inventory	3.66	4.19
Trade Receivables	Revenue from	Average Trade	4.95	4.09
Turnover Ratio	Operations	Receivables
Trade Payables Turnover Ratio	Purchases*	Average Trade Payables	4.27	3.74
Net Capital Turnover Ratio	Revenue from Operations	Working capital	6.33	5.47

 

Net Profit %	Profit After Tax (PAT)	Revenue from Operations	0.03	0.02
Return on Capital	Profit Before Interest Tax	Capital	0.12	0.08
Employed (ROCE) %	(PBIT)	employed
Return on Investment (ROI) %	Investment Income	Average Investments	NA	NA

*Purchases include Purchase of Raw Material, Store & Spares, Packing Material and Chemical.

Explanation for variances exceeding 25%:

1. Debt Service Coverage Ratio (DSCR): - Due to Improve in profitability the DSCR has improve by 62% .

2. Return on Equity (ROE): - Due to improve in profitability the ROE has improve by 30%.

3. Net Profit: - Due to improve in profitability the Net Profit has improve by 50%.

4. Return on Capital Employed (ROCE): -Due to improve in profitability the ROCE has improve by 50%.

Liquidity:

Particular	For the period ended 31-03-2025	For the period ended 31-03-2024
Net cash generated from Operating Activities (A)	415.47	1,281.26
Net cash used in Investing Activities (B)	(320.45)	(16,341.73)
Net cash generated from Financing Activities (C)	(177.85)	13,764.96
Net increase/decrease in cash (D=	(82.83)	(1,295.51)
A+B+C)
Cash and cash equivalents at the beginning (E)	121.48	1,416.99
Cash and cash equivalents at the end (F= D+E)	38.65	121.48

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:

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:

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:

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

• 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. We have signed into technical support service agreements to ensure the proper operation and maintenance of our equipment and machinery.

• 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-Jojro 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		FOR & ON BEHALF OF THE BOARD OF DIRECTORS
Date:13.08.2025		MANOMAY TEX INDIA LIMITED
SD/-	SD/-	SD/-
Kailashchandra Hiralal Laddha	Yogesh Laddha	Pallavi Laddha
(Chairman)	(Managing Director)	(Whole Time Director)
DIN: 01880516	DIN: 02398508	DIN: 06856220