Soma Textiles & Industries Ltd Management Discussions.

1. INDUSTRY STRUCTURE:

The Indian textiles industry has an overwhelming presence in the economic life the country and is one of the oldest industries of the country. The textile industry has a capacity to produce a versatile spread of products appropriate for varied market segments, both domestic and the export markets. The textile industry plays a pivotal role through its contribution to industrial output, employment generation and export earnings of the country.

Indian textile industry contributes about 14 % to industrial production. 4% to countrys gross domestic production, 17% to countrys export earnings. It provides direct employment to over 35 million people.

Opportunities

The Indian textile industry is set for strong growth, buoyed by both strong domestic consumption as well as export demand.

Indias textile sector is aided by several key advantages, in terms of availability of various raw material, entrepreneurial skills, large domestic market, presence of supporting industries and supporting policy initiatives from the government.

Challenges

To get maximum advantage of the vast potential of this vibrant industry, it is very important for the Government and Industry to work towards addressing key challenges including obsolete machinery and technology, threats to handloom sector, power shortage, illicit markets, labor related concerns, raw materials shortage and lack of quality infrastructure in non-metropolitan cities, rising wages and power cost.

Currently the Indian Denim Industry is going through sluggish phase due to exponential capacity expansion which has created an oversupply situation.

2. INDUSTRIAL RELATIONS AND HUMAN RESOURCE MANAGEMENT:

The Company continued to have cordial and harmonious relations with itsemployees. It considers manpower as its assets and that people had been the driving force for growth of the Company.

3. INFORMATION TECHNOLOGY

IT department has continued providing stable, faster & easier platform for the users to do their work with more productivity. Strengthening antivirus & security systems have made users experience safe & secured. They can concentrate on their own work rather than concerned about security & availability of their data.

4. CAUTIONARY STATEMENT

Certain statements in the "Management Discussion and Analysis" section may be forward looking and are stated as required by applicable laws and regulations. Many factors may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook.