The key issues of the Management Discussion and Analysis are given below.
1. Global Outlook:
The Textile Industry is expected to grow from USD 723 billion in 2024 to USD 859 billion by 2028, at a CAGR of 3.52% during the forecast period (2023-2028).
The COVID-19 pandemic has challenged the textile industry drastically in 2020. Asia, which is one of the largest markets for the textile industry in the world, has suffered from the prolonged lockdowns and restrictions in the majority of Asian countries along with the sudden drop in international demand for their products. The loss was particularly high in countries where the textile industry accounted for a larger share of the exports. According to the study by the International Labour Organization (ILO) the global textile trade collapsed during the first half of 2020. Also, exports to the major buying regions in the European Union, the United States, and Japan fell by around 70%. The industry also suffered several supply chain disruptions due to the shortages of cotton and other raw materials.
The textile industry is an ever-growing market, with key competitors being China, the European Union, the United States, and India. China is the worlds leading producer and exporter of both raw textiles and garments. The United States is the leading producer and exporter of raw cotton, while also being the top importer of raw textiles and garments. The textile industry of the European Union comprises Germany, Spain, France, Italy, and Portugal at the forefront with a value of more than 1/5th of the global textile industry.
India is the third-largest textile manufacturing industry and is responsible for more than 6% of the total textile production, globally. The rapid industrialization in the developed and developing countries and the evolving technology are helping the textile industry to have modern installations which are capable of high-efficient fabric production. These factors are helping the textile industry to record more revenues during the study period and are expected to help the industry further in the forecast period.
(source: https://www.mordorintelligence.com/)
2. Textile Industry & Market Growth in India:
The textile industry is one of the oldest business options in India since the ancient age and the second largest employer in India.
India is the worlds second-largest producer of textiles and garments. Both skilled laborers and unskilled officials are needed to run this business smoothly. The products of the Indian textile industry with traditional designs and textures are very popular all over the world. 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.
Market Size
Indias textiles industry has around 4.5 crore employed workers including 30.50 lakh handloom workers across the country.
The textiles and apparel industry contribute 2.3% to the countrys GDP, 13% to industrial production and 12% to exports. India has a 4% share of the global trade in textiles and apparel.
India is the 5th largest producer of technical textiles in the whole world with a market size of nearly $22 Bn, which is proposed to build up to $300 Bn by 2047.
Investment
Total FDI inflows in the textiles sector stood at Rs. 29,291.05 crore (US$ 4.59 billion) between April 2000-December 2024.
In order to attract private equity (PE) and employee more people, the government introduced various schemes such as the Scheme for Integrated Textile Parks (SITP), Technology Upgradation Fund Scheme (TUFS) and Mega Integrated Textile Region and Apparel (MITRA) Park scheme.
Government Initiatives
The Indian Government has come up with several export promotion policies for the textile sector. It has also allowed 100% FDI in the sector under the automatic route.
Initiatives taken by the Government of India are:
The Government of India has earmarked a corpus of Rs. 1,000 crore (US$ 127.72 million) dedicated to research and development of the technical textiles sector. Out of this, Rs.133.83 crore (US$ 17.5 million) is for the Textile Cluster Development Scheme, Rs. 100 crores (US$ 13.07 million) for the National Technical Textiles Mission, and Rs. 15 crores (US$ 1.96 million) each for PM Mega Integrated Textile Region and Apparel parks scheme and the PLI Scheme. The government allocated funds worth Rs. 17,822 crores
(US$ 2.38 billion) between FY16-22 for the Amended Technology Upgradation Fund Scheme (A-TUFS), to boost the Indian textile industry and enable ease of doing business. The policies and initiatives taken by the Government of India depict the faith it is investing in the industry to explore and expand. India has the potential to increase its capacity and the growth is visible, its time for the manufacturing of quality yarns for garments for India and the world.
Production Linked Incentive (PLI) Scheme - The PLI Scheme for Textiles to promote production of MMF apparel, MMF Fabrics and Products of Technical Textiles in the country to create 60-70 global players, attract fresh investment of Rs. 19,000 crore approximately and generate almost 7.5 lakh new employment opportunities.
PM-MITRA: To attract investment for Make In India initiative and to boost employment generation through setting up of 7 (Seven) PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites with world class infrastructure including plug and play facility with an outlay of Rs.4445 crore for a period of seven years upto 2027-28.
Scheme for Integrated Textile Parks (SITP): The scheme provides support for creation of world-class infrastructure facilities for setting up of textile units.
Integrated Processing Development Scheme (IPDS): In order to facilitate the textile industry to meet the required environmental standards and to support new Common Effluent Treatment Plants (CETP)/ upgradation of CEPTs in existing processing clusters as well as new processing parks specially in the Coastal Zones.
Special Package for Textile and Apparel sector: Rs. 6000 crore package was launched in June 2016 to boost employment and export potential in the apparel and made up segments.
Various sectoral schemes to support traditional textile sectors such as handlooms, handicraft, silk and jute.
Road Ahead
India is working on major initiatives to boost its technical textile industry. There is tough competition from China, Bangladesh, Pakistan, and Vietnam for exporting textile products in the global market. However, the Indian textile industry still manages for a comeback even after the decline of the business in 2020 21.
India is projected to be the second most attractive market by 2025, contributing up to US$ 121 billion, while China is projected to be the most attractive market, contributing up to US$ 378 billion. In 2017-2018, India has one of the fastest-growing economies, with a GDP growth rate of 7.2%. This increases the spending power of the general population and stimulates demand for textile sector goods. This expansion results in a vast array of manufacturing capacities for diverse items that may be shipped both inside India and beyond.
In addition, India has one of the most diverse textile industries, with hand-woven textiles on one end and capital-intensive mills on the other, resulting in a vast range of possibilities within the textile industry.
To overcome the existing obstacles faced by the textile industry and accomplish the anticipated worldwide market objective, Indias textile sector must make several modifications and apply some new practices to increase its competitiveness. One of the implementations to boost production includes a greater emphasis on technological upgrades and weaving capacity expansion. Additionally, state governments should provide clearance for effluent treatment facilities to elevate the commercial market in its entirety.
The Indian textile sector would thrive to tremendous heights if both the national and state governments provide adequate assistance to its small and large-scale players. In addition to educating their staff to suit the changing needs of the contemporary market, the Indian textile sector should also consider decreasing the levies placed on government-subsidized exports.
Moreover, ensuring a sufficient supply of gas is crucial to the textile industrys continued operation. The creation of capital subsidies, the provision of a single point of contact for resolving industry issues, and the establishment of a set price for yarn on an annual basis would facilitate the flow of labor and aid the nations impoverished farmers.
With a rise in disposable income, the need for goods in the Indian textile sector has expanded, resulting in enormous demand in both the local and foreign markets. Consequently, Indias textile industry has a bright future due to the rapid expansion of the retail sector, government assistance, and investments.
(source: www.timesofindia.indiatimes.com)
3. Our Business:
Our Company has established a distinct identity in the international business landscape, primarily catering to the European markets such as Spain, Germany, France, the Netherlands, and the UK. We specialize in the manufacturing and export of scarves and beachwear, along with a wide range of womens and mens fashion apparel including scarves, shawls, sarongs, headbands, bandanas, and beachwear garments made from silk, viscose, cotton, polyester, wool, and various blends.
Our manufacturing operations are primarily conducted at our in-house facility located in Virar (Palghar). We manufacture products largely on a make-to-order basis, tailored to the current fashion forecasts and client specifications, including for several large brands in both international and domestic markets. Our distribution channels span wholesale, retail, and e-commerce.
In recent times, however, our Company has experienced a significant reduction in export orders, leading to a scaled-down level of operations. This decline in exports has impacted production volumes, particularly in our international segment, and we are actively working on realigning our business strategy to adapt to the evolving global market conditions.
We pride ourselves on maintaining cost efficiency by sourcing raw materials from across India, ensuring access to a wide variety of fabrics and trims at competitive prices. Our manufacturing is supported by modern machinery and an in-house team that manages cutting, sewing, ironing, quality control, finishing, packing, and dispatch, ensuring high standards are upheld across every order.
Our design team plays a vital role in developing new styles, fits, and finishes, aligned with international fashion trends and client preferences. We also support our customers with customized trims, labels, tags, polybags, and cartons, adhering to their specification manuals.
Quality remains a core pillar of our operations. We follow a three-level quality check process, ensuring every order meets stringent quality parameters from raw material to finished product. Our commitment to quality, timely delivery, innovative design, and a reliable supply chain gives us a competitive edge in the market. This customer-centric approach has helped us build long-term relationships with clients who continue to place repeat orders with us.
Our Company was founded with the passion to serve the fashion industry through ethical business practices, a customer-first philosophy, and a commitment to social compliance and corporate governance. With a dedicated team of designers, technologists, stylists, and CAD professionals, we continue to explore emerging fashion trends and align our offerings accordingly.
Despite recent headwinds in the export market, we remain optimistic and committed to strengthening our domestic footprint and exploring new business opportunities. We invite new business collaborations and bulk orders and assure timely delivery and long-term business relationships founded on mutual trust and value.
4. Risk Management:
The Company possesses a well-defined risk management framework. The primary goal of risk management is to recognize, supervise and undertake preventative steps with reference to incidents that may create risks for the business.
5. Internal control systems and their adequacy:
The Companys internal control system (including internal financial control system) has been monitored continuously and updated to ensure that assets are safeguarded, regulations established are complied with and pending issues are promptly addressed. The reports presented by internal auditors are reviewed by the audit committee on a routine basis. The committee makes note of the audit observations and takes corrective actions, if necessary. The committee maintains constant dialogue with statutory and internal auditors to make sure that internal control systems are operating effectively.
6. Cautionary Statement:
The statements made in this section describe the Companys objectives, projections, expectation and estimations which may be forward looking statements within the meaning of applicable securities laws and regulations
For SK International Export Limited |
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Sd/- | Sd/- | |
Hitesh S Sadh | Purti H Sadh | |
Mumbai |
Managing Director | Director |
August 20, 2025 |
DIN: 03055331 | DIN: 08228285 |
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