We submit herewith the "Management Discussion and Analysis Report" on the
business of the Company as applicable to the extent relevant.
INDUSTRY STRUCTURE AND DEVELOPMENT
The Textile market consists of sales of textiles by entities (organizations, sole
traders and partnerships) that produce fiber, yarn, threads, carpets, rugs, linens and
other textile products.
The global textile market size is expected to grow from $530.97 billion in 2021 to
$575.06 billion in 2022 at a compound annual growth rate (CAGR) of 8.3%. The textile
market is expected to grow to $760.21 billion in 2026 at a CAGR of 7.2%.
Increasing demand for online shopping is expected to drive the textile manufacturing
market. Manufacturers can now sell their products on a larger platform than before, which
will increase their customer base geographically driving the growth of the textile
manufacturing market. In countries such as India, for instance, e-commerce portals have
boosted the sales of traditional garments by giving larger exposure to producers who were
confined to one geography.
The Textile Industry is facing exceptional and unprecedented challenging conditions.
There is a rise of demand for low-cost products having sustainable and environment -
friendly production processes. Consumers are seeking products that are made from renewable
materials and from sustainable manufacturing processes. Further, rising importance of
digital technology in textile products, 3D modelling and other technologies are enabling
manufacturers to create more innovative and customized products while improving production
efficiencies and reducing waste. Hence, there is an optimism that post geopolitical
stabilization, textile sector will show positive trends due to new opportunities and
technological innovations supported by domestic & global demand, investment incentives
(PLI) and strong balance sheets of companies. Further, China plus one policy adopted by
USA / Europe will give a boost to Indian Textile Sector.
In global home textile segment, cotton terry towels is the single largest commodity
with a massive market share of 14 per cent. According to the Office of Textiles and
Apparels (OTEXA) US, in CY 2019, India supplied about 39 per cent of the import of cotton
towels to the US, which has grown significantly from the level of 30 per cent in CY 2009.
The hospitality and spa industry, a major consumer of towels, is badly impacted in last
one year and is still under pressure. It impacted the market for towel segment negatively
but the good thing is that despite this setback, the segment has ample opportunities for
India and Indian giants are geared up to grab these opportunities.
TEXTILE INDUSTRY IN INDIA- STRUCTURE AND DEVELOPMENT
Indias textile sector is one of the oldest industries in Indian economy dating back
several centuries. Even today, textiles sector is one of the largest contributors to
Indias exports. The textile industry is also labor intensive and is one of the largest
employer. The textile industry has two broad segments. First, the unorganized sector
consists of handloom, handicrafts and sericulture, which are operated on a small scale and
through traditional tools and methods. The second is the organized sector consisting of
spinning, apparel and garments segment which apply modern machinery and techniques such as
economies of scale.
India accounts for good percentage of the worlds production of textile fibres &
yarns. Fabric production in the country rose to millions. The industry is the second
largest employer after agriculture, providing employment to over millionsof people
directly and indirectly. The Indian Textile Industry contributes a good percentage to
Indias Gross Domestic Product (GDP), and overall Index of Industrial Production (IIP).
The Indian Textiles Industry has an overwhelming presence in the economic life of the
country. Apart from providing one of the basic necessities of life, the textiles industry
also plays a vital role through its contribution to industrial output, employment
generation, and the export earnings of the Country.
OPPORTUNITIES
The most significant change in the Indian textile industry has been the advent of
man-made fibres (MMF). India has successfully placed its innovative range of MMF textiles
in almost all the countries across the globe. The future outlook for the Indian textile
industry looks promising, buoyed by both strong domestic consumption as well as export
demand. With consumerism and disposable income on the rise, the retail sector has
experienced a rapid growth in the past decade.
Opportunities available to the Company in the present scenario, which can be seized for
the benefit of the Company and ultimately to the stakeholders, can be summarized as under:
1. The Government of India announced a slew of wide-ranging reforms across varied
sectors amidst a comprehensive package aggregating Rs. 20 lakh crore — or
approximately 10% of nominal (vi) subordinated debt and equity support to MSMEs.
2. In the Union budget, a good amount has been allocated to the Ministry of Textiles in
order to support various schemes covering the textile industry.
3. Capacity built over years has led to low cost of production per unit in Indias
textile industry; this has lent a strong competitive advantage to the countrys textile
exporters relative to key global peers.
4. Indias growing population has been a key driver of textile consumption growth in
the country.
5. Urbanization is expected to support higher growth due to change in fashion &
trends.
THREATS
Based on review of the textile market situation and level of rivalry present in the
domestic market, following threats might be present in the market, which can hinder growth
of the revenue of the Company:
1. Intense competition between established brands and private label brands.
2. Low cost substitute products from other countries
3. Significant presence of small suppliers has reduced the bargaining power.
4. Major clothing brands have better bargaining power over textile manufacturers, as
the product differentiation is low and numbers of players are high and fragmented.
SEGMENT–WISE OR PRODUCT-WISE PERFORMANCE
The Company deal in Single Segment i.e. Textile. During the year, the revenue from
operations stood at Rs. 27,50,02, 908/ - as compared to Rs. 20,10,22,363 /
-of last financial year on standalone basis.
DISSCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
The financial statements have been prepared in accordance with the requirements of the
Companies Act, 2013 and applicable accounting standards issued by the Institute of
Chartered Accountants of India. The details of the financial performance of the Company
are appearing in the Balance Sheet, Profit & Loss Accounts and other financial
statements forming part of this annual report.
RISKS AND CONCERNS
During the year there was no risk faced by the Company and their employees other than
the normal risk attached to any business
INTERNAL CONTROL SYSTEM
Given the magnitude and nature of its business, the Company has maintained sound and
commercial practice with an effective internal control system. The system ensures that all
transactions are authorized, recorded and reported correctly to safeguard the assets of
the Company and protect them from any loss due to unauthorized use or disposition. The
adequate internal information system is in place to ensure proper information flow for the
decision-making process. The Company also has well established processes and clearly
defined roles and responsibilities for people eat various levels. The control mechanism
also involves well documented policies , authorization guidelines commensurate with the
level of responsibility and standard operating procedures specific to the respective
businesses, adherence to which is strictly ensured. Internal audit is carried out
frequently to create awareness and to take corrective actions on the respective units or
areas, which need rectification. These reports are then reviewed by the management team
and the Audit Committee for follow-up action.
HUMAN RESOURCE DEVELOPMENT
The Company regards its human resources as amongst its most valuable assets and
proactively reviews policies and processes by creating a work environment that encourages
initiative, provides challenges and opportunities and recognizes the performance and
potential of its employees attracting and retaining the best manpower available by
providing high degree of motivation.
Your Company believes in trust, transparency & teamwork to improve employees
productivity at all levels.
DISCLOSURE OF ACCOUNTING TREATMENT
While preparation of financial statements, a relevant Accounting Standard treatment has
been followed.
CAUTIONARY STATEMENT
The management discussion and analysis report containing your Companys objectives,
projections, estimates and expectation may constitute certain statements, which are
forward looking within the meaning of applicable laws and regulations. The statements in
this management discussion and analysis report could differ materially from those
expressed or implied. Important factors that could make a difference to the Companys
operation include raw material availability and prices, cyclical demand and pricing in the
Companys principal markets, changes in the governmental regulations, tax regimes, forex
markets ,economic developments within India and the countries with which the Company
conducts business and other incidental factors.
DETAILS OF SIGNIFICANT CHANGES
There were no significant changes during the year in the area of working &
operations of the company in Comparison to the previous financial year.
DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS
FINANCIAL YEAR
The Financial Year 2022-23 had been fortunate enough for the Company as your Company
has shown a prodigious performance during the year under review. The return on Net Worth
stood at 51.22% for the current financial year as compared to 37.75% for the previous
financial year.
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