Sutlej Textiles and Industries Ltd Management Discussions

Global Economic Scenario

The global economy continues to face significant headwinds, driven by slowing growth, persistent inflationary pressures and escalating geopolitical uncertainties. Recent forecasts from major economic institutions indicate a downturn in global economic activities, particularly impacting major economies like the United States and China.

Global Growth Outlook

The International Monetary Fund (IMF) has notably revised downwards its global growth forecast to 2.8% for 2025, a sharp reduction from the previous estimate of 3.3%. The United Nations Conference on Trade and Development (UNCTAD) has projected an even lower growth rate of 2.3%, citing intensified trade tensions and lingering uncertainties as primary drivers of this recessionary trajectory.

The Peterson Institute for International Economics (PIIE) similarly forecasts a slowdown, estimating global GDP growth at 2.7% in 2025 and marginally improving to 2.8% in 2026, compared to 3.2% growth experienced in 2024.

Global Trade Activity

Contrary to broader economic trends, global trade activity has shown resilience. Global goods trade recorded a year-on-year growth of 2.8% in Q3 FY 25, marking its strongest performance in over two years. The World Trade Organization (WTO) expects this positive momentum to continue in 2025, forecasting merchandise trade volume growth of 3%, the strongest since the COVID-affected year of 2021.

Indian Economic Scenario Economic Growth Outlook

The World Bank has lowered Indias GDP growth estimate to 6.5% for FY 25 and further reduced it to 6.3% for FY26, primarily due to global economic weaknesses, slow private investment growth and public capital expenditure falling short of government targets. Concurrently, the IMF has adjusted Indias GDP growth projection downward to 6.2% for 2025 from an earlier forecast of 6.5%.

Inflation and Monetary Policy

In its 54^th meeting on 9^th April, 2025 the Monetary Policy Committee (MPC) unanimously decided to reduce the policy repo rate by 25 basis points, bringing it down to 6% with immediate effect.

Indias headline inflation has moderated notably, reaching 3.34% in March 2025, down significantly from 6.2% in October 2024. The Reserve Bank of India (RBI) is aiming to maintain inflation within its targeted range of 2 - 6%.

The RBI projects CPI inflation for FY26 at 4%, demonstrating controlled inflation dynamics and allowing monetary easing to support economic activity. Retail inflation in India has shown a consistent decline over the past three financial years, easing from 6.7% in 2022-23 to 5.4% 2023-24 and further to 4.6% in 2024-25.

Meanwhile, the annual inflation rate based on the All-India Wholesale Price Index (WPI) stood at 2.05% (provisional) for March 2025, compared to March 2024.

Rupee and Exchange rate

Geopolitical tensions led to volatility in currency markets, with the Indian rupee closing at 84.29 per dollar on 5^th May, 2025, marginally weaker due to ongoing geopolitical concerns. The exchange rate has seen wide fluctuation during the last one year from a high at 87.997 in February 2025 to a low at 82.95 in June 2024 and average being at 84.639.

Foreign Exchange Reserve

Indias foreign exchange reserves rose consistently, reaching a six-month high of US$ 688.13 billion as of 25^th April, 2025, approaching the record high of US$ 704.89 billion achieved previously.

Foreign Direct Investment

Net Foreign Direct Investment (FDI) in India dropped significantly to US$ 1.18 billion during April-December 2024, down from US$ 7.84 billion during the previous year, primarily due to increased repatriation and outward investments by Indian firms. Repatriations rose sharply, and outward FDI by Indian firms increased notably to US$

17.3 billion from US$ 10.9 billion a year ago, reflecting a significant shift in investment dynamics.

Export/Import/Trade Deficit

Total exports in March, 25 recorded a year-on-year growth of 2.65%, reaching an estimated US$ 73.61 billion. Similarly, total imports for March are estimated at US$ 77.23 billion, reflecting a year-on-year growth of 4.90%.

Indias overall exports grew approximately 6%, surpassing US$ 820 billion in FY 25 from US$ 778 billion in FY24, despite geopolitical challenges, including the Red Sea crisis, Israel-Hamas conflict, and Russia-Ukraine war. Merchandise exports alone reached US$ 395.63 billion from April to February FY 25.

However, the trade deficit widened significantly to US$ 21.54 billion in March 2025 as compared to US$ 15.31 billion a year earlier, due to an 11% increase in imports, which reached US$ 63.51 billion. Notably, exports growth was modest at 0.7% YoY in March to US$ 41.97 billion, while non-petroleum exports saw a moderate increase of 2.2% at US$ 37.07 billion in March 25.

During the April-December 2024 period, the current account deficit widened to US$ 37 billion, or 1.3 % of GDP, from US$ 30.6 billion (1.1% of GDP) in the same period of 2023.

Industrial and Core Sector Performance

The Index of Industrial Production (IIP) saw modest growth of 2.9% in February 2025, a slowdown compared to Januarys 5% growth. The combined Index of Eight Core Industries (ICI) grew by 3.8% in March 2025, with cumulative growth for FY 25 at 4.4%, reflecting steady but subdued industrial activity.

Goods and Services Tax (GST)

The GST collection reached an all-time high of Rs 2.37 lakh crore, marking a 12.6% YoY increase, compared with Rs 1.96 lakh crore in March 2025, and beating previous Aprils high of Rs. 2.1 lakh crore. The gross GST revenue for FY 25 amounted to Rs. 22.08 lakh crore against Rs. 20.18 lakh crore in FY24, registering a healthy 9.4% YoY growth. The consistent rise in GST collections indicate enhanced economic activity and improved tax compliance.

Growth of the Indian economy

	FY22	FY23	FY24 FY25E
Real GDP growth (%)	8.7	7.2	9.2 6.5

E: Estimated

(Source: MoSPI, Financial Express)

Growth of the Indian economy quarter by quarter, FY 2024-25

	Q1 FY25	Q2 FY25	Q3 FY25	Q4 FY25E
Real GDP growth (%)	6.5	5.6	6.2	7.6

Outlook: India is expected to remain the fastest-growing major economy. The services sector is likely to sustain its momentum, manufacturing activity is expected to accelerate (driven by government initiatives to enhance logistics infrastructure and tax reforms).

Global Textile and Apparel Industry Market Overview

Market Size & Growth: The global textile and apparel market is projected to reach US$ 2.9 trillion in 2025, with an expected growth to US$ 3.9 trillion by 2032, reflecting a Compound Annual Growth Rate (CAGR) of 4.3%.

Apparel Market: The global apparel market is valued at US$ 1.84 trillion in 2025, accounting for 1.65% of global

GDP. It is projected to grow at a CAGR of 2.61% from 2025 to 2029, reaching US$ 2.04 trillion by 2029.

Textile Market: The broader textile market, encompassing fibers, yarns, fabrics and finished products, is valued at US$ 774.33 billion in 2025, with an expected CAGR of 3.52% to reach US$ 920.55 billion by 2030.

The Asia-Pacific region leads, driven by China (worlds largest textile producer and exporter), India and Bangladesh, which benefit from low labour costs, vast production capacities and strong supply chains. The U.S. is a major consumer and raw cotton exporter, while Europe remains a key market for sustainable and luxury products. The U.S. (US$ 365.7 billion), China (US$ 313.82 billion) and India (US$ 101.39 billion) are the largest apparel markets.

The textile market has witnessed strong growth in recent years, expanding from US$ 640.43 billion in 2024 to an estimated US$ 696.16 billion in 2025, at a CAGR of 8.7%. Looking ahead, the market is expected to maintain its upward trajectory, reaching US$ 915.96 billion by 2029, with a projected CAGR of 7.1%.

Key Trends and Developments

a. Sustainability and Circular Economy

Theres a growing consumer preference for sustainable and ethically produced textiles. Brands are investing in sustainable materials, recycling technologies and transparent supply chains.

b. Technological Advancements

The industry is adopting automation and AI for demand forecasting, inventory management and personalized marketing. Implementation of digital twins allows for real-time simulation and optimization of supply chain scenarios.

c. Trade Policies and Tariffs

Recent U.S. tariffs on imports from major Asian exporters, including China and Vietnam, are impacting global supply chains, leading to increased production costs and prompting brands to diversify sourcing. Brands are exploring alternative manufacturing hubs in Southeast Asia and India to mitigate tariff impacts and ensure supply chain resilience.

d. Consumer Behaviour Shifts

Economic uncertainties are driving consumers towards value shopping, with increased interest in second hand markets and rental services. Theres a trend towards minimalist and timeless fashion choices, reflecting a shift from fast fashion to more sustainable consumption patterns.

e. Relocation of Production

Rising labour costs in China are pushing apparel manufacturing to countries like Bangladesh, Vietnam and emerging hubs in Africa, the Middle East and Latin America, driven by lower costs and proximity to consumer markets.

f. Political instability

Political instability in apparel-producing countries (e.g., Bangladesh) and the potential expiration of trade agreements like AGOA in 2025 could complicate sourcing.

Indian Textile and Apparel Sector

The textile and apparel industry is one of the largest contributors to Indias economy, providing employment to millions and generating substantial foreign exchange earnings. With strong policy support, infrastructure development and a skilled workforce, India has emerged as a preferred investment destination in the global textile sector.

The textile and apparel industry contributes 2.3% to Indias GDP, 13% to industrial production and 12% to exports. It is also the second largest employment generator, after agriculture, with over 45 million people employed directly. The textile industry in India is predicted to double its contribution to the GDP, rising from 2.3% to approximately 5% by the end of this decade.

Export and Import Performance

From March 2024 to March 2025, Indian textile exports declined by 5.81%, while apparel exports rose by 3.97%. Cumulatively, textile and apparel exports dropped by 1.63% during this period.

However, for the full fiscal year (April 2024 to March 2025), textiles and apparel exports showed a robust 6.32% growth compared to the previous year, with textiles rising by 3.61% and apparel by 10.03%. However, the spun yarn segment has remained stagnant, indicating a shift in market demand towards more cost-effective and high-performance alternatives like filament yarns.

The market for Indian textiles and apparel is projected to grow at a 10% CAGR to reach US$ 350 billion by 2030. Moreover, India is the worlds 3^rd largest exporter of textiles and apparel. India ranks among the top five global exporters in several textile categories, with exports expected to reach US$ 100 billion by 2030.

Despite global uncertainties, Indias textile and apparel sector demonstrated resilience and adaptability, maintaining competitiveness on a global scale.

Government Support and Initiatives

The government has introduced multiple schemes to enhance textile production, boost investments and promote exports, including:

1. Production Linked Incentive (PLI) Scheme for Textiles: To increase manufacturing in man-made fibre (MMF) and technical textiles.

2. PM MITRA (Mega Integrated Textile Region and Apparel) Parks: To develop world-class industrial infrastructure for textile manufacturing. A total of 7 parks have been established in states of Gujarat,

Maharashtra, Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh and Telangana.

3. Amended Technology Upgradation Fund Scheme (ATUFS): To incentivise credit flow for benchmark credit linked technology upgradation.

4. Samarth (Scheme for Capacity Building in Textile Sector): To provide skill training to workers in the textile industry, in partnership with the Ministry of Skill Development & Entrepreneurship.

5. Textile Cluster Development Scheme (TCDS): To create an integrated workspace and linkages-based ecosystem for existing as well as potential textile units/clusters to make them operationally and financially viable.

6. National Technical Textiles Mission (NTTM): To boost Technical Textiles in the country.

7. The Union Budget announced an outlay of Rs. 5,272 crore for the Ministry of Textiles for 2025-26. This is an increase of 19% over budget estimates of 2024-25 (Rs. 4,417.03 crore).

8. Bharat Tex 2025, Indias largest global textile event, was successfully organized from 14^th to 17^th February, 2025, at Bharat Mandapam, New Delhi. Bharat Tex 2025 served as a platform to accelerate the governments "Farm to Fibre, Fabric, Fashion and Foreign Markets" vision. The event demonstrated Indias leadership in the textile sector and its commitment to innovation, sustainability and global collaboration.

Outlook for India

The Indian textile, yarn and apparel industry is a significant economic force, facing both challenges and opportunities. Currently, the industry is grappling with issues like higher production costs, a fragmented supply chain and complex export procedures compared to competitors like Vietnam and China. However, there are also promising opportunities for growth, particularly in the technical textiles and man-made fibre sectors, driven by government policies, technological advancements and increasing global demand.

HOME TEXTILES

The Home furnishings business (a discretionary spend product) experienced a globally subdued market environment due to geopolitical tensions, including war conditions and an overall economic slowdown in Europe and UK. The year also marked an election year in multiple countries across the world, including the prominent

ones such as US and UK, we do business with wherein most wholesalers/converters (our major customers) held off new introduction in anticipation of the change in trade policies.

Most markets demonstrated price sensitivity which potentially was to facilitate value price point offerings to encourage customers to buy. With the increase in container costs and limited availability, the inventory levels with manufacturers continued to increase as the customers waited to consolidate goods longer than usual.

Chinese manufacturers and traders and some European importers opened warehouses in Dubai and Abu Dhabi to offer quick ship low inventory module to customers. Dubai has been their gateway to enter Russia and Africa since most wholesalers from Dubai sell into Russia and Africa.

In FY25-26 amidst the US tariff uncertainties, Indian manufacturers in textile space are in a reasonably favourable place with resourcing opportunities coming their way. While the demand may be impacted in short term at the retail in US, the price adjustments will happen organically over the next few months.

Indian home textiles industry overview

The Indian home textile market encompasses the production, distribution, and sale of various textile products designed for household use, it includes curtains, towels, bedding and other decorative fabrics. The Indian home textile market is valued at an estimated US$ 10.54 billion in 2025 and is projected to grow to US$ 16.86 billion by 2030, registering a CAGR of 9.84% during the 2025-2030 forecast period.

The Indian home textile industry is projected to achieve a revenue growth of 8-10%, with operating margins anticipated to range between 14-15%. The Indian home textile industry derives 70-75% of its revenue from exports, the United States alone accounts for 60% and the remaining 25-30% comes from the domestic market. In India, the home textile industry, comprising six major listed companies accounting for about 65% of the domestic market, is expected to grow by 8-10% in FY 25, with operating margins remaining between 14-15%. This growth will be driven by rising per capita income, urbanization, booming real estate sector and increased consumer awareness for hygiene. After facing setbacks in FY23, the industry is on a recovery path, evident from FY24 performance.

(Source: Custornrnarketinginsights, Wrightresearch.in,

Textile insights, Mordorintelligence)

SWOT analysis Strengths

Basic raw materials: Indias textile industry benefits from strong self-sufficiency in raw materials, especially natural fibres, making it the worlds third-largest cotton producer. What sets India apart is its ability to produce and process a diverse range of fibres, reinforcing its competitive edge in the global market.

Labour: The success of Indias apparel and textile industry has long been driven by its affordable labour force and strong entrepreneurial expertise.

Adaptability: Indias garment industry, primarily composed of small-scale manufacturers, offers flexibility in managing specialized and smaller orders. The country is rich in resources such as jute, cotton, silk, cotton yarn, and man-made fibres, strengthening its position in textile production. The Indian textile and garment sector is highly self-sufficient, encompassing the entire value chain from raw material procurement to the production of finished goods.

Weaknesses

Spinning sector: The spinning industry must embrace new technologies to overcome its lack of modernization and enhance efficiency.

Weaving sector: India has a relatively limited number of shuttle-less looms.

Fabrics processing: The processing sector is the weakest link in Indias textile value chain, limiting the countrys competitiveness in export markets.

Deficient infrastructure: High electricity costs and long export lead times are hindering Indias export competitiveness.

Low labour productivity: Productivity levels in India for manufacturing various types of clothing are significantly lower.

Opportunities

Market entry via bilateral negotiations: Trade within regional blocs is growing due to bilateral agreements among participating nations.

The possibility of high-value items: India has the potential to enhance its Unit Value Realization (UVR) by advancing up the value chain, manufacturing value - added products and continuously expanding its portfolio of technologically advanced goods.

Threats

Decline in the fashion cycle: The rise in the number of fashion seasons per year has shortened the industrys product cycle.

Formation of trading blocks: The global trade landscape has shifted due to trading blocs like NAFTA and SAPTA. Without bilateral agreements, Indian exports could face significant challenges.

Phasing out of quotas: India would need to open its protected local market to global competition, potentially impacting the domestic industry.

Company review

Sutlej Textiles and Industries Limited stands as one of Indias largest integrated textile manufacturing companies, encompassing the entire value chain from yarn production to home textiles. A flagship within the multi-business conglomerate established by the late Dr. K. K. Birla, the Company operates manufacturing units in Rajasthan, Jammu and Kashmir, Himachal Pradesh and Gujarat. By the close of FY 2024-25, it boasts an aggregate spinning capacity of approximately 4.16 lakh spindles. The Company specializes in producing synthetic, natural and blended yarns, a diverse range of spun yarns, home textile furnishings and polyester staple fibre derived from recycling PET bottles. It holds a significant position as one of Indias largest manufacturers of spun-dyed yarn and value-added melange yarn.

Key ratios

Particulars	FY 25	FY 24
Debt-equity ratio	0.97	0.84
Debtors turnover (days)	49	48
Inventory turnover (days)	121	108
Debtors turnover	7.49	7.60
Inventory turnover	3.02	3.38
Interest coverage ratio (x)	1.11	-0.08
Current ratio (x)	1.19	1.25
EBIDTA margin (%)	2.58	-0.20
Net Profit margin (%)	-3.19	-5.04
Return on Net Worth (%)	-9.42	-13.79

During the year, the Company has taken multiple initiatives to optimise cost and products, which has led to improvement in operational results. The Company has generated positive EBITDA and Cash Profit compared to negative EBITDA and Cash loss in FY24. Accordingly, Interest Coverage Ratio, EBITDA Margin, Net Profit Margin, Return on Net Worth ratios have improved compared to that of FY23-24.

The Companys key ratios for FY 2024-25 reflect the challenging global and domestic economic environment. Although inflation eased compared to the previous year, the financial performance was impacted by high interest rates, slower growth in major economies and geopolitical tensions (including the Russia-Ukraine conflict, Israel- Hamas crisis and Red Sea disruptions).

Overall, while the Companys financial ratios indicate partial operational improvement, profitability and returns remained under pressure, reflecting the continued impact of external challenges and cost pressures.

Risk management

The Companys effective risk management approach is driven by the expertise and proactive involvement of its management team. The risk management committee plays a crucial role in promptly identifying and mitigating potential risks. Recognizing risk as an inherent aspect of business, the Company remains committed to implementing proactive and efficient risk management strategies.

Quality risk: The businesss performance may

face challenges due to subpar product quality and inefficiencies in manufacturing processes.

Mitigation: The Company ensures optimal efficiency across its manufacturing facilities by making substantial investments in cutting-edge technologies while upholding the highest quality standards.

Raw material risk: Fluctuations in raw material costs could have an adverse impact on the business.

Mitigation: The Company monitors the market for raw material procurement and implements proactive strategies to mitigate the impact of price fluctuations.

Trend risk: The Companys growth may be constrained if it fails to adapt to changing consumer preferences.

Mitigation: Demonstrating a strong commitment to technological advancement and market relevance, the Company continues to invest in product development and innovation. In FY 2024-25, 42% of spindle capacity was allocated to the production of value added yarn.

Competition risk: The entry of new competitors may impact the Companys profitability.

Mitigation: By exporting to around 64 countries and serving customers across India, the Company minimizes potential risks through ongoing product innovation, strong brand recognition and efficient operations.

Customer attrition risk: Customer retention is crucial, as it directly impacts the Companys revenue and profitability.

Mitigation: As a leading textile solutions provider, the Company consistently innovates by offering yarns such as cotton blended dyed yarn, cotton melange and specialty blends. In FY 2024-25, total yarn sales reached 1,01,183 metric tonnes, reflecting its dedication to meeting evolving market demands.

Internal control systems and adequacy

The Company has established comprehensive internal control systems and processes designed to align with its unique business operations and complexities. By implementing strong policies and procedures, it ensures business integrity, asset protection, accurate financial reporting and fraud prevention. These systems undergo regular evaluations to enhance their effectiveness and drive continuous improvement.

Human resources

The Company values its dedicated and motivated employees as its greatest asset. It maintains a healthy work environment, offers competitive compensation and acknowledges employee contributions through a structured reward and recognition program. To support professional growth, the Company encourages employees to participate in voluntary projects beyond their core responsibilities, promoting creativity and continuous learning. As of 31^st March, 2025, the Company had a workforce of 15,166.

Conservation of Energy

Disclosure of particulars with respect to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo as required under Section 134(3)(m) of the Companies Act, 2013, read with Rule 8 (3) of the Companies (Accounts) Rules, 2014.

1) Energy Conservation measures taken:

Conservation of energy is an essential step towards overcoming energy crisis, environmental degradation and global competitiveness.

The Company is giving due importance to conservation of energy and makes continuous efforts to conserve energy by effecting process and machinery modifications, implementation of technological advancements, development of newer methods, energy audit, proper and timely maintenance and waste heat recovery, etc., amongst others. These measures lead to savings in terms of energy, money and time.

Besides continuing the measures taken in earlier years, following additional steps were taken during the year 2024 - 25 with a view to reduce cost of energy and consequently, the cost of production:

A. Spinning

a) Installed :

i. 21 energy saving motors at a capital cost of Rs. 12.99 lakhs resulting in saving 286 Kwh/ day and Rs. 7.78 lakhs per annum.

ii. AC drive with transducer on suction fan of ring frame LR/6 4.5 KW (10 machines) at a capital cost of Rs. 8.00 lakhs resulting in saving 207 Kwh/day and Rs. 3.61 lakhs per annum.

iii. PPPPU unit of condensate of electrical pump at a capital cost of Rs. 2.54 lakhs resulting in saving 125 Kwh/day and Rs. 2.90 lakhs per annum.

iv. Power capacitor without any cost resulting in saving 17 Kwh/day and Rs. 0.46 lakhs per annum.

b) Optimized / Converted :

i. Reduction of compressed air leakage at a capital cost of Rs. 53.57 lakhs resulting in

saving 11,350 Kwh/day and Rs. 193.36 lakhs per annum.

ii. Frequency of return air fan of H. Plant without cost resulting in saving 192 Kwh/day and Rs. 5.22 lakhs per annum.

iii. Undertook energy audit at a capital cost of Rs. 6.50 lakhs resulting in saving 613 Kwh/day and Rs. 9.23 lakhs per annum.

iv. Repaired leakage and carried out the necessary repairs and changes without any cost resulting in saving 520 Kwh/day and Rs. 9.10 lakhs per annum.

v. Frequency of WCS was reduced and kept pascal between 850 - 900 which resulted in energy saving by running motors frequency between 35 to 48 hz. without any cost leading to saving 460 Kwh/day and Rs. 8.06 lakhs per annum.

vi. PDC TFO 2 section and auto coner 3 sections dismantled for sampling purpose without any cost which resulted in saving 88 Kwh/ day and Rs. 1.54 lakhs per annum.

c) Replaced :

i. Old air compressor 1070 CFM capacity with new energy efficient compressor at a capital cost of Rs. 41.31 lakhs resulting in saving 910 Kwh/day and Rs. 13.70 lakhs per annum.

ii. 58 low efficiency ceiling fans with energy saving ceiling fans at a capital cost of Rs. 1.33 lakhs resulting in saving 67 Kwh/day and Rs. 1.20 lakhs per annum.

Various other measures taken in earlier years are continuing.

B. Home Textiles

i. Undertook audit at a capital cost of Rs. 646.86 lakhs which is expected to result in saving 15 MT of Coal/day and 60 KL of condensate water per day and Rs. 479.30 lakhs per annum.

ii. Installed new PPPPU pump with 900 Kg/Hr capacity at a capital cost of Rs. 1.80 lakhs resulting in saving of 5 KLD/day hot water and Rs. 1.31 lakhs per annum.

FORM - A

(A) Power and Fuel Consumption:

Particulars	2024-25	2023-24
1. Electricity:
(a) Purchased:
Units (in lakhs)	4,510.45	4,371.80
Total Cost (Rs. in lakhs)	25,712.86	24,170.94
Rate/Unit (Rs.)	5.70	5.53
(b) Own Generation:
(i) Through Diesel Generators
Units (in lakhs)	4.72	5.88
Units per litre of Diesel Oil (Kwh/Ltr.)	3.39	3.47
Cost/Unit (Rs.)	25.34	24.05
(ii) Through Furnace Oil Generators
Units (in lakhs)	-	0.00
Units per litre of Furnace Oil	-	2.10
Cost/Unit (Rs.)	-	20.35
(iii) Through Thermal Power Plant
Units (in lakhs)	-	-
Units per MT of Coal (including lignite)	-	-
Cost/Unit (Rs.)	-	-
(iv) Through Solar Power Plant
Units (in lakhs)	38.62	38.65
Total Cost (Rs. in lakhs)	28.64	28.64
Cost/Unit (Rs.)	0.74	0.74
2. Coal:
(a) Steam Coal
Quantity (Tons)	26,847.23	23,256.12
Total Cost (Rs. in lakhs)	1,844.78	2,116.55
Average Rate (Rs.)/Ton	6,871.40	9,101.05
(b) Wooden Chips
Quantity (Tons)	86.46	3,526.13
Total Cost (Rs. in lakhs)	4.35	222.62
Average Rate (Rs.)/Ton	5,031.46	6,313.47
(c) Pet Coke
Quantity (Tons)	16,802.03	15,612.65
Total Cost (Rs. in lakhs)	2,540.70	2,711.46
Average Rate (Rs.)/Ton	15,121.41	17,367.06
3. Furnace Oil:
Quantity (Kilo Litres)	-	0.85
Total Cost (Rs. in lakhs)	-	0.63
Average Rate (Rs. per Kilo Litre)	-	73,844.71
4. HSD Oil:
Quantity (Kilo Litres)	145.02	176.35
Total Cost (Rs. in lakhs)	124.92	148.05
Average Rate (Rs. per Kilo Litre)	86,142.31	83,953.79

(B) Consumption per unit of production:

Particulars	2024-25	2023-24
Production :
Electricity per Ton of Yarn Production (Units) @	3,007	2,953
Electricity per Ton of Knitting Fabric Production (Units) €	194	233
Coal per Ton of Yarn Production (Tons) #	0.373	0.394
Pet Coke per Ton of Yarn Production (Tons) #	0.140	0.132
Electricity per thousand metres of Processed fabrics (units) €	556	501
Electricity per thousand metres of Home Furnishings (units) $	1,337	1,375
Coal per thousand metres of processed fabrics (Tons)	0.99	0.82

@ depends on count, ply, dyed or grey, etc. # depends on quantum of dying.

€ depends on weight/meter of fabrics.

$ depends on picks/metre.

2. Energy Conservation plan for 2025-26

A. Spinning

Following measures are contemplated to save energy consumption during the year 2025-26:

Install :

Ground Mounted Solar Plant with capacity of 4,867 Kwp; APFC Panel with Harmonic Filter; 21 VFD; 1500 KVA Transformer in old Dye House; 4 Water Supply Pumps in new Dye House, Boiler and H. Plant; and Invertors all at a capital cost around of Rs. 1,357 lakhs, which is expected to result in saving of about 21,922 Kwh/day and Rs. 596 lakhs per annum.

Optimize / Convert :

Reduce and arrest compressed air leakages; re-routing steam and condensate line; and provide VFD on Pneuma fan motors of 1,104 spl KTTM RF on 8 machines all at a capital cost of around Rs. 98 lakhs, which is expected to result in saving of about 2,363 Kwh/day and Rs. 97 lakhs per annum.

Replace :

2 old air compressor 1,085 CFM capacity each with new energy efficient Kaiser make air compressors; 19 main motors of TFO with energy efficient IE4 motors; old pump with new energy efficient pump; 30 low efficiency Ceiling Fans with energy saving Ceiling Fans; and old Aluminum Fans with aerodynamic design energy efficient EFRP Fans all at a capital cost of around Rs. 113 lakhs, which is expected to result

in saving of about 2,285 Kwh/day and Rs. 36 lakhs per annum.

B. Home Textiles

Following measures are contemplated to save energy consumption during the year 2025-26:

Install :

Pressure based automation system for fresh and mix water supply at a capital cost of Rs. 0.20 lakhs, which is expected to result in saving 792 Kwh/day and Rs. 2.6 lakhs per annum.

Optimize / Convert :

Automate second stack of VDR machine by controlling condensate water temperature; and optimization of compressor with VFD which is expected to result in saving of about 1,825 MT Steam/annum and 640 Kwh/day and Rs. 44.70 lakhs per annum.

Replace :

TMT machine compressor with energy efficient compressor; and ID fan motor of 12 tph boiler with IE4 motor all at a capital cost of Rs. 9.40 lakhs, which is expected to result in saving of about 79,644 Kwh/day and Rs. 21 lakhs per annum.

3. Impact of measures at (A) & (B) for reduction of energy consumption and consequent impact as the cost of production of goods:

The estimated savings are mentioned against each item (A) & (B).

FORM - B

Disclosure of particulars with respect to technology absorption (to the extent possible)

1. Technology Absorption

1) Research and Development (R&D)

A. Specific area in which R&D is carried out by the Company

a) Spinning

Synthetics: There are well equipped labs for testing of the raw materials, in-process materials as well as final products (finished goods), dyes & chemicals and all kind of packing materials, etc. in all the units of the Company. We also have dedicated full-fledged product development teams for continuously developing high value added products as per the requirements of various customers; Our NPD (New Product Development) team is engaged in new development activities along with development of various innovative and sustainable products depending upon the market and global trends by using various sustainable fibres and sustainable processes by consuming less water and power. Our R & D lab has latest generation and state of the art technological equipment like Uster - 6 Evenness Tester, Uster Tenso Rapid 5, Uster Quantum Classimat - Yarn Fault Classifying System, Online Monitoring System, etc. (all from Uster), Auto Dispenser system, Beaker Dyeing machines, etc. which help in fulfilling stringent market requirements as well as achieving utmost customer satisfaction. Recently, the Company has been accredited with the prestigious IMS (Integrated Management System) Certification consisting of ISO 9001-2015 (QMS), ISO-14001-2015 (EMS) and ISO-45001/2018 (OHSAS) and BIS Certification. Apart from these, the Company has 14 different certifications comprising of Usterised Lab, Oeko-Tex, FSC, SVCOC, GOTS/GRS/OCS/RCS, Fair Trade and SA 8000 Certifications to name a few from various certification/accreditation bodies; major emphasis is always given on continual improvement and development of new innovative and sustainable products for achieving greatest customer satisfaction which is the core strength and success of the organization.

Cotton: The Company has all the facilities for in-house testing with latest well-equipped lab for testing of raw materials to finished products, along with dyestuff and packing material. The Company is more focused on value-added products; our NPD team also invests in new development with innovation, occasionally based on market trends and their own skills. We have separate cells for sample product development to fulfill customer requirements on time and to meet their satisfaction level. Our R&D lab has the latest technological equipment, like Uster 6-Evenness Tester, HVI 1000, Tenso Jet-Advance Fibre Information System, i.e., AFISPRO 2, Advance Fibre Information System (AFIS), UTR 4, Classimat-5 Yarn Fault Classifying System, Online Monitoring System, Lab Expert System (all from Uster), Premier iQ2 and Premier Tensomaxx 7000. The Company has also acquired new technology for core spun facility for increasing new product basket. Furthermore, the integration of auto dispensers and beaker dyeing machines exemplifies a forward-thinking approach that prioritizes efficiency and precision. The Company has IMS certification, which includes ISO 9001-2015, ISO 14001-2015, and ISO 45001-2018; its reputation for excellence in operational standards continues to solidify. Additionally, the Companys 14 other certifications including Oeko-Tex, GOTS/GRS/ OCS/RCS, Fair Trade, and SA 8000 - reflect a robust commitment to sustainability and ethical practices in the industry. The organizations commitment to quality and innovation is clearly demonstrated through its comprehensive range of certifications and advanced technologies. Wherever required, the Company will install Uster Tenso Jet-4 and Yarn Friction Tester to maintain superior product quality. The Company has continued to launch shade cards of Suiting and Shirting containing several shades based on different themes this year too.

b) Home Textiles

The Company has maintained well equipped, most modern and state of the art quality testing equipment like latest generation Advance Fibre Information System, Uster Quantun 4, Premier IQ2 and Premier Tensomaxx 7000 along with other instruments managed by experienced and qualified team.

B) Benefits derived as a result of above R&D

These measures have helped in production of value added new products, reduction of cost, etc. Besides various studies and experiments are undertaken to save energy, improve productivity and quality, control costs, etc.

The Company has installed machines for developing small samples of yarn to expedite fabric development and to capture market share.

These measures have helped in the production of value-added new products, reduction of costs, etc. increased range of shade and products for becoming the first choice of customers and having a competitive edge over other competitors in the same field and increased brand image; R&D inputs also help in assuring quality status and corrective steps to be taken for maintaining consistency and continual improvement. Besides various studies and experiments are undertaken from time to time to save energy, improve productivity and quality, control costs and fulfill the requirements of domestic and export customers. Collectively, these elements underscore the organizations position as a leader dedicated not only to quality but also to responsible innovation in the textile sector.

C) Future plan for action

Synthetics: The Company intends to install latest generation Uster Quantum Clearer 4 (EYC) phase wise for all the Auto Coners of Synthetic section along with FL-FD channels (Contamination Clearer) for better monitoring and clearing of Classimat Objectionable Faults and achieving improved yarn quality; Latest Hi Tech TFO and Cheese Winding machines will be installed for achieving substantial savings of energy and improved quality. The Company will also go for one more Uster Quantum Classimat Tester for catering to the on growing requirements of the market for fault free yarns. Also older generation Uster Evenness Tester will be replaced by new generation UT-6 Tester. Simultaneously the Company is also planning for a latest generation Knitting Machine as well as Miniature Loom(s) for ensuring better infrastructure in product development for enhanced penetration of the market.

Cotton: The Company is planning to replace old version winding clearer and Auto Coner with new Uster Quantum-4 clearer for better quality of yarn. We also plan to upgrade the carding section. Double yarn capacity will be increased by adding new TFO with upgraded cheese winding. To enhance our product development cell, we are planning for a miniature loom for cotton development to cater to the weaving sector. We will also increase the capacity of compact yarn in cotton production.

2) Expenditure incurred towards R&D

S. No. Particulars	2024-25	2023-24
a) Capital	20.32	1229.89
b) Recurring	700.31	661.64
c) Total	720.63	1891.53
d) Total R&D Expenditure as a percentage of Total Turnover	0.282%	0.718%

2. Technology Absorption, Adaptation and Innovation

A. Spinning

The Company is having latest state of the art plant and machinery and has the policy of continuous modernization and up-gradation of machines. We have installed latest technology plant and machinery by replacing old technology machines to achieve higher productivity, efficiency and better quality viz. Mixing Bale Opener Model LB3/2, Hydrant Pipe Line, Draw Frame LBD3, Electric Motor POS-01 4028.1819.12/0, Conversion of MCCB 630 Amp, LMW Suction Compact 720 LR9AX, Speed Frame LF 4200 upgradation, Lycra Winder machine of 32 Spindle, Assembly Cheese Winding Versa A-72 Machines for improving productivity and quality of our product, the following capital expenditure has been incurred during the year :

a) Incurred Rs. 3,027 lakhs on replacement of old technology, plant machinery and equipment.

b) Incurred Rs. 1,573 lakhs on addition and modifications of existing plant and machinery.

c) Incurred Rs. 515 lakhs on purchase of machines and equipment for debottlenecking.

B. Home Textiles

The Company is having latest state of the art plant and machinery and plans for continuous modernization and upgradation of machines. For technology absorption, adoption and innovation, the following capital expenditure has been incurred during the year:

a) Incurred Rs. 495.55 lakhs on replacement of old technology, machinery and equipment.

b) Incurred Rs. 75.95 lakhs on addition and modifications of existing plant and machinery.

c) Incurred Rs. 67.07 lakhs on purchase of machines and equipment for debottlenecking.

3. Foreign Exchange Earnings & Outgo

1. Activities relating to exports, initiatives taken to increase exports, development of new export markets for products and services and export plans.

The Company has taken effective steps for exports. During the year, the Company achieved satisfactory export performances. The Company is conscious of the challenges in export market and will continue to take steps towards developing exports and will concentrate on products having higher per unit realization.

2. Total foreign exchange earned and used

S. No. Particulars	2024-25	2023-24
i) Foreign Exchange Earned	891.45	1015.11
ii) Foreign Exchange Used	39.93	52.81