Maris Spinners Ltd Management Discussions

1. INDUSTRY STRUCTURE, DEVELOPMENT AND PRODUCT WISE PERFORMANCE

The Company is in the business of manufacturing 100% Cotton Yarns, having its units at Hunsur, Mysore Dt., Karnataka and Manapparai, Trichy District, Tamilnadu. The unit supplies its produce to the domestic markets.

2. INDIAN TEXTILE INDUSTRY

The Indian textile industry is one of the worlds largest, contributing about 2% to Indias GDP and employing over 65 million people. It is projected to grow at a 10% CAGR, reaching USD 350 billion by 2030, with exports expected to hit USD 100 billion

The Key Highlights of the Indian Textile Industry

V Global Position: India is the second-largest producer of textiles and garments and the third-largest exporter, holding a 4.6% share of global trade.

V Economic Contribution: The industry contributes 2-2.3% of GDP, 11-13% of manufacturing GVA, and 12% of total export earnings.

V Employment: Provides direct and indirect jobs to over 65 million people, making it one of Indias largest employment generators.

V Raw Materials: India is the largest producer of cotton (22% of global output) and a leading producer of jute, silk, and wool.

The Indian textile industry is one of the largest and most dynamic sectors in the world. With its rich cultural heritage and diverse production capabilities, India is poised to become a global textile leader soon. As we move into the future, several key trends and innovations are shaping the trajectory of the industry.

Key Growth Drivers for the Indian Textile Industry by 2026

The Indian textile industrys growth is being driven by rising domestic consumption (especially in Tier-2 and Tier- 3 cities), government-backed initiatives like PM MITRA mega textile parks and the PLI scheme, and structural shifts toward man-made fibers and technical textiles. Free trade agreements (India-UK, India-EU) and sustainability- focused practices are also key accelerators.

Latest Emerging Trends in India Textile Market

• Growing Demand for Sustainable and Eco-Friendly Textiles

Sustainability is fast becoming one of the most sought after trends in the India textile and apparel industry. Environment friendly fabrics such as organic cotton, recycled polyester and biodegradable fibers are being used by consumers and global brands, and manufacturers are adopting cleaner and more water-efficient dyeing methods and better sourcing practices. Another reason for the increase in such materials used in Indian apparel is the commitment by large international apparel companies to source materials responsibly.

• Expansion of technical and functional textiles

Growing sophistication in technical textile demands from industries such as healthcare, automotive, agriculture, and construction is reshaping the customary textiles industry. Demand for durable geotextiles, medical textiles, and functional protective textiles, each tailored for specific applications, is driving growth in technical textile manufacturing. Government initiatives in supporting technical textile research and production are encouraging domestic firms to invest in R&D, gradually moving manufacturing from customary fabrics to more specialized, value-added textile products.

• Rapid Digitalization and Smart Manufacturing

Digital transformation is an important trend in the India textile market, with manufacturers adopting automation, data analytics, and artificial intelligence to improve production efficiency, reduce operating costs, and support changing consumer demand. Digital supply chain platforms and smart inventory management systems improve companies abilities to respond to changes in market demand while supporting productivity and increasing Indias position in the international textile export market.

Growth Factors Driving India Textile Market

• Strong Domestic Consumption with Retail Expansion

Indias large population, an expanding middle class, and rising incomes have led to rising demand for apparel and home textiles. The increasing number of customers has been fuelled by urbanization and the growth of organized retailing. Additionally, changing fashion trends and the rising penetration of e-commerce in the market are encouraging the consumption of several textile goods, contributing to market growth.

• State Support and Political Policy

The Indian government has established policies and schemes such as PLI schemes, textile parks, and special infrastructure development schemes to promote domestic manufacturing capabilities to attract more investment into the industry. Additionally, training and skill development programs, along with modernization efforts, have helped manufacturers improve their productivity and quality, improving the industrys global competitiveness.

• Export Potential and Global Supply Chain Opportunities

India is one of the largest producers and exporters of textiles and apparel globally, and caters to a variety of markets for garments, fabrics and yarns. Indian manufacturers are also well placed to take advantage of changing global supply chains. With its large raw material availability, skilled workforce and well established manufacturing base, textile market in India is expected to continue growing and integrate with global markets.

Challenges to Overcome

While the outlook for the Indian textile industry is positive, there are several challenges to address. These include:

High Raw Material Costs: The cost of raw materials such as cotton and man-made fibers continues to fluctuate, impacting profitability.

Infrastructure Gaps: Despite improvements, the textile industry still faces challenges related to infrastructure, logistics, and outdated machinery in some regions.

Environmental Concerns: While sustainability is a growing trend, more efforts are needed to reduce water and energy consumption in textile manufacturing.

GOVERNMENT INITIATIVES

The Indian government has rolled out a comprehensive set of initiatives for the textile industry in the Union Budget 2026-27, focusing on fibre self-reliance, cluster modernization, sustainability, skilling, and artisan support. Mega Textile Parks and targeted schemes like the National Fibre Scheme, Tex-Eco Initiative, and Samarth 2.0 are central to boosting competitiveness, exports, and employment.

Major Government Initiatives

1. National Fibre Scheme

• Supports natural fibres (silk, wool, jute), man-made fibres (MMF), and new-age fibres.

• Goal: reduce import dependence, diversify beyond cotton, and strengthen advanced textile materials.

• Enhances Indias position in polyester, viscose, and performance textiles.

2. Textile Expansion & Employment Scheme

• Provides capital support for machinery and technology upgrades.

• Establishes common testing and certification centres.

• Targets modernisation of traditional clusters and large-scale job creation.

3. National Handloom & Handicraft Programme

• Integrates existing schemes for weavers and artisans.

• Focuses on market access, income stability, and heritage preservation.

• Strengthens craft-based livelihoods across rural India.

4. Tex-Eco Initiative

• Promotes environmentally sustainable textiles and apparel.

• Aligns Indian manufacturers with global ESG norms.

• Helps exporters meet international sustainability benchmarks.

5. Samarth 2.0

• Revamped skilling programme for industry-ready manpower.

• Collaboration with industry and academia to modernise training.

• Focus on advanced fibres, technical textiles, and sustainable practices.

6. Mega Textile Parks

• Large-scale integrated parks with world-class infrastructure.

• Designed to achieve scale efficiencies, value addition, and export competitiveness.

• Special focus on technical textiles for industrial, medical, and defence applications.

7. Mahatma Gandhi Gram Swaraj Initiative

• Strengthens khadi, handloom, and handicrafts.

• Provides global market linkages, branding, training, and quality improvement.

• Supports rural artisans with modern processes and better incomes.

1. Strengths:

a) Basic raw materials:

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

b) Labour:

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

c) Adaptability:

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

The textile sector in India offers a number of advantages. The first is the accessibility of inexpensive labour. According to facts, the country has highly skilled labour available for very little money, which lowers the cost of production. India has a lot of raw materials available, which helps to minimise costs and shorten

lead times. Resources including jute, cotton, silk, and cotton yarn, as well as man-made fibres, are particularly abundant in India. Another highlight area of India is its large diversity of cotton fibres that stands India apart from other nations. They go on to say that the textile as well as garment sector in India is very self-reliant one. From the acquisition of raw materials through the creation of completed items, it has a whole value chain.

2. Weaknesses:

Despite its strengths, the Indian textile industry in 2026 faces structural weaknesses such as fragmentation, outdated technology, high compliance costs, and limited innovation. These weaknesses hinder competitiveness against global rivals like Bangladesh, Vietnam, and China.

Weaknesses of Indian Textile Industry

1. Fragmented Industry Structure

• Dominated by small and medium enterprises (SMEs) spread across clusters.

• Lack of scale prevents technology adoption, productivity gains, and global competitiveness.

2. Outdated Technology

• Many clusters still rely on obsolete machinery and manual processes.

• Limited access to capital for modernization slows productivity improvements.

3. High Compliance Costs

• Meeting global ESG and sustainability standards is expensive.

• Smaller firms struggle to afford certifications, audits, and traceability systems.

4. Low Value Addition

• India exports a large share of raw cotton and yarn instead of finished garments.

• Limited focus on design, branding, and innovation reduces profitability.

5. Skill Gaps

• Workforce lacks training in advanced fibers, technical textiles, and sustainable practices.

• Skill development programs like Samarth 2.0 are still in early stages of execution.

6. Logistics & Infrastructure Bottlenecks

• High transportation costs and port delays reduce export competitiveness.

• Inadequate cluster-level infrastructure compared to rivals with streamlined supply chains.

2. Threats:

Challenges Facing Indias Textile Industry:

1. Global Competition

• Bangladesh and Vietnam dominate low-cost garment exports.

• China leads in man-made fibers (MMF) and technical textiles.

• India risks losing market share unless it focuses on value-added products.

2. Trade Policy & Tariff Risks

• Uncertainty in free trade agreements (FTAs) with the EU and UK.

• Possible tariff barriers and stricter rules of origin could hurt exports.

• Dependence on the US and EU markets makes India vulnerable to policy shifts.

3. Sustainability & ESG Pressures

• Global buyers increasingly demand eco-friendly, traceable supply chains.

• Non-compliance risks loss of contracts and reputational damage.

• Smaller firms may struggle to meet costly sustainability standards.

4. Technological Disruption

• Rivals are adopting automation, AI-driven design, and digital supply chains faster.

• Indias fragmented clusters risk falling behind in Industry 4.0 adoption.

5. Raw Material Volatility

• Cotton prices fluctuate due to climate change and global demand shifts.

• Heavy reliance on cotton makes India vulnerable compared to MMF-driven competitors.

6. Logistics & Infrastructure Challenges

• High transportation costs, port delays, and weak cluster infrastructure reduce competitiveness.

• Rivals with streamlined logistics networks gain faster access to global markets.

Conclusion:

The global textile market is currently worth $400 billion. According to data and the facts it is forecasted that, the output of textiles will rise by 25% globally, with Asia playing a major role. As per as the Indian textile and apparel sector is considered as one of the largest in the world, plays a vital role in the Indian economy, and is very old. The scale, scope, depth, and competitiveness of the Indian textile and apparel sector is incomparable by any other country, exception of China. India now has the chance to work on its inherent strengths and become the top sourcing and investment place after quotas were removed at the end of 2004.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate internal control system commensurate with the size and complexity of the organization. The Company has undertaken a comprehensive review of all internal control systems to take care of the needs of the expanding size of the Company and also upgraded the IT support systems. A system of internal audit to meet the statutory requirement as well as to ensure proper implementation of management and accounting controls is in place. The Audit Committee periodically reviews the adequacy of the internal audit functions.

7. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

There are no material developments in the Human Resources area. The industrial relations have been generally satisfactory. The Company constantly reviews the man power requirements and has a properly equipped Department to take care of the requirements. The total number of people employed by the Company as on 31.03.2025 was 463.

8. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The total Revenue for the year 2025-2026 was Rs. 17517.37 lakhs with a Loss of Rs. 216.43 lakhs.

9. DISCLOSURE OF ACCOUNTING TREATMENT

In the preparation of financial statements, no treatment different from that prescribed in Accounting Standard has been followed.

Disclaimer

Statement in the Management discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results may however differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand / supply and price conditions in the domestic and overseas markets in which the Company operates. Changes in government regulations, tax laws and other statutes and other incidental factors. The Company assumes not responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments information or events.