Soma Textiles & Industries Ltd Management Discussions.

1. INDUSTRY STRUCTURE:

The Indian textiles industry has an overwhelming presence in the economic life of 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.

It contributes to 14% to Industrial production, 4% of In Indias GDP and to 15% of the countrys export earnings. It is the second largest provider of employment after agriculture and provides direct employment to over 51 million people. Thus, the growth and all round development of this Industry has direct bearing on the improvement of the economy of the country.

Opportunities

The global textile industry will continue to grow along with growing consumption of textile products in developing countries and a gradual economic recovery of major developed economies.

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

Challenges

The major challenge that the textile industry is facing is rising production costs, arising out of rising wages, power and interest costs.

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

2. INDUSTRIAL RELATIONS AND HUMAN RESOURCE MANAGEMENT:

The Company continued to have cordial and harmonious relations with its employees. 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. 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.