Omansh Enterprises Ltd Management Discussions

ECONOMIC OVERVIEW Global economy

The global textile industry witnessed moderate growth in FY 2024-25, driven by rising demand for sustainable fabrics, digital transformation in supply chains, and increased consumption in emerging markets. However, challenges such as raw material price volatility, geopolitical tensions, and energy costs impacted margins across the sector.

Indian economy

In India, the textile sector remained resilient, supported by government initiatives like the Production Linked Incentive (PLI) scheme and increased export opportunities. The domestic market saw a shift toward eco-friendly and value-added products.

Indian textile and apparel industry and Government Support

Government Support:

^10,683 crore allocated under the PLI Scheme for MMF fabrics, technical textiles, and high-value apparel.

PM MITRA Parks: 7 mega textile parks with world-class infrastructure and $10 billion expected investment.

Samarth Scheme: Skilling 1 million textile workers.

Sustainability Push: Rising demand for organic cotton, bamboo textiles, and biodegradable fabrics.

Tech Adoption: AI-driven manufacturing, IoT-based quality control, and 3D weaving are transforming production.

Export Ambition: India aims to triple textile exports to ?9 lakh crore by 2030

As per the International Textile Manufacturers Federation (ITMF), the textile sector has seen subdued demand since June 2022 due to persistent global inflation and lingering possibilities of a recession. Inflation has affected consumers and manufacturers alike with manufacturers and suppliers having to pay much more across their supply chains, from the cost of freight to wage increases for their workers. This has put textile manufacturers in a difficult situation. The Indian textiles market is expected to be worth more than USD 209 billion by 2029.

Opportunities and Threats

Opportunities

> Favorable government initiatives such as the National Technical Textiles Mission (NTTM), 100% FDI in the sector, SAMARTH- Scheme for Capacity Building in the Textile Sector, etc. for the development of the textile industry.

> Extension of the scheme for Rebate of State and Central Taxes and Levies (RoSCTL) till March 31, 2026, for the export of apparel, garments and made-ups with the same rates would benefit textile companies.

> The China plus one diversification policy will benefit Indian manufacturers. As global retailers are looking for an alternate supply base, India has emerged as an attractive option for manufacturing and exports of textiles and apparels.

> The growth of the technical textile market will create lucrative opportunities.

> The rapid growth of the retail sector and E-commerce will boost the growth of the textile and apparel industry.

> Rising disposable incomes will stimulate domestic demand.

> The growing popularity of fast fashion products will contribute to the growth of the textile and apparel industry.

Threats

> Being a labour-intensive sector, the shortage of skilled workforce may impact the operations and result in inability to complete orders.

> Competition in the global market, especially from the textile and garment industries in Bangladesh and China.

> Subdued demand for textile and apparel exports as consumer confidence is lower in the key markets.

> Compliance issues with the environmental norms and regulations.

Company performance

Results review

Since company was under CIRP from 31 st January 2023 to 29 th February 2024. Therefore, revenues of the company stood at nil as compared to Rs. 1.02 Lakh as per previous year. Profit after tax and exceptional items stood at (19.26) Lakh as compared to (32.72) Lakh.