Sybly Industries Ltd Management Discussions

Pursuant to the Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, your Directors have pleasure in presenting the Management and Analysis Report for the year ended on March, 31^st 2025.

An Overview Indian Textile Industry

The Indian textile industry has strength across the entire value chain from natural to man-made fiber to apparel to home furnishings. Its share in the nations GDP is 6% and in exports is 13%. The sector is the second largest employer after agriculture. After the phasing out of export quotas in 2005 Indias export performance has been below expectations. Its share of global exports is around 5% whereas it was expected to rise quickly towards Chinas level. The Chinese share in global exports is 39%. Vietnam and Bangladesh have shown remarkable success. Vietnam could achieve a peak export growth rate of 30% while Bangladesh could achieve a growth rate of 18%.

Taking innovative measures in partnership with the industry and learning from experience, India could aspire to achieve 20% growth in exports over the next decade. In any case the achievement of 15% growth rate in exports should be feasible. In the domestic market, sustaining an annual growth rate of 12% should also not be difficult.

This implies that with a 12% CAGR in domestic sales the industry should reach a production level of US$ 350 billion by 2024-25 from the current level of about US$ 100 billion for the domestic market.

With a 20% CAGR in exports India would be exporting about US$ 300 billion of textile and apparel by 2024-25 while with the lower15% CAGR in exports, India would be exporting about US$ 185 billion of textile and apparel by 2024-25.Considering the targeted growth in exports, India should by then have a market share of 15% to 20% of the global textile and apparel trade from the present level of 5%.

During this period India should also attempt a structural transformation whereby it becomes a net exporter of finished products. This would imply that growth rates in exports of fibre and yarn should start declining and growth rates of apparel, homes furnishing, technical textiles and other finished products should grow very rapidly. This would maximise employment generation and value creation within the country and the fulfilment of the Prime Ministers Vision of “Make of India”. In the process, investment of about US$ 180 billion to US$ 200 billion would take place and about 35 million additional jobs would get created.

Market Size

India Textile Market was valued at USD 240.8 Billion in 2024 and is expected to reach USD 475.7 Billion by 2033, at a CAGR of 6.84% during the forecast period 2024 - 2033.

Textiles are woven or non-woven materials used to create clothing, upholstery, and other flexible goods. They come in a variety of natural and synthetic fibers, like cotton, wool, polyester, and nylon. The textile market refers to the global network of businesses that manufacture, distribute, and sell these textiles.

This market is huge, valued in the trillions of dollars, and is expected to keep growing due to rising clothing demand and the convenience of online shopping. Its also becoming more diverse with the rise of technical textiles used for industrial purposes.

Indias textiles industry has around 4.5 crore employed workers including 35.22 lakh handloom workers across the country. Exports of textiles (RMG of all textiles, cotton yarns/fabs/made- ups/handloom products, and man-made yarns/fibs/made-ups, handicrafts excluding handmade carpets, carpets and jute mfg. including floor coverings) stood at US$ 29.8 billion between April- December 2021.

B. INVESTMENT AND KEY DEVELOPMENT

• Maintenance of a competitive exchange rate is an essential prerequisite in labour intensive manufacturing in mature industries. Textilesis such an industry. With the recent depreciation of the rupee which has mitigated the severe real exchange rate appreciation over the earlier years, textile exports have grown by 13% in dollar terms in 2013-14 whereas it was only 6% in 2012-13. Government needs to work with the RBI to ensure that India maintains a competitive exchange rate over the next 10 years as was done by Japan, South Korea and China in their phase of rapid growth in manufacturing and exports.

• In April 2022, Indo Count Industries bagged the home textile business of GHCL for US$ 74.14 million.

• In March 2022, Reliance Retail Ventures Limited (RRVL) acquired a controlling share of Purple Panda Fashions for US$ 115.8 million.

• Sutlej Textiles plans to set up a green field project for 89,184 spindles comprising of cotton melange yarn and PC grey yarn along with dye house in Jammu & Kashmir with an estimated cost of US$ 111.41 million (Rs. 914 crore).

• Vardhman has established Vardhman ReNova, a cotton recycling facility with a six TPD production capacity. By establishing two new facilities in Madhya Pradesh, the company has also increased its capacity to produce yarn. With top-notch technology, the expansion includes over 100,000 spindles in total. This will result in a 75 TPD increase in yarn production capacity.

• The textile ministry has selected 61 companies, including Arvind Limited to enjoy benefits under its US$ 1.3 billion (Rs. 10,683 crore) production-linked incentive (PLI) scheme for the labourintensive textiles and garment sector. The companies have pledged to invest US$ 2.32 billion (Rs 19,077) crore over five years under the scheme, which will lead to an incremental turnover of US$ 22.55 billion (Rs 1.85 trillion) and direct employment generation for 240,000 people.

• Arvind Limited, the largest textile to technology conglomerate in India, and PurFi Global LLC, a sustainable technology firm that specialises in rejuvenating textile waste into virgin grade products, have formed a joint venture to reduce the quantity of textile waste dumped in landfills.

• In November 2022, local weavers in Tuensang in Nagaland were provided 45 days of skillupgrading training, which would equal 315 hours under the SAMARTH programme.

• In 2022-23, the Sardar Vallabhbhai Patel International School of Textiles and Management (SVPISTM) is planning to offer B.Sc. and MBA courses in technical textiles.

• In November 2021, Federico Salas, the Mexican Ambassador to India, visited the Khadi India Pavilion at the India International Trade Fair 2021 and suggested that India and Mexico should come together to promote Khadi globally.

• Companies in home textile are using technology to optimise the value chain. For example, in October 2021, Welspun India introduced Wel-Trak 2.0?an upgraded, patented end-to-end traceability technology?to track textile raw materials throughout the supply chain.

• Home textile companies in India are also leveraging strategic partnerships to strengthen their business operations and foothold in the country.

• In October 2021, Welspun India collaborated with DuPont Biomaterials to introduce a home textile range and strengthen the companys sustainable textiles business.

• In May 2021, Indo Count Industries Ltd. (ICIL) announced an investment of Rs. 200 crore (US$ 26.9 million) to expand its production capacity.

• In April 2021, RSWM Limited, Flagship Company of the US$ 1.2 billion LNJ Bhilwara Group, was recognized for achieving the highest textile export turnover in 2020 by the Ministry of Industries & CSR, Government of Rajasthan.

• In April 2021, Bella Casa Fashion & Retail Ltd. (BCFRL) announced that it is expanding its two existing plants and adding one new facility to offer employment opportunities to 1,000 people. The expansion would involve a total investment of Rs. 65 crore (US$ 8.63 million).

Government Initiatives

The Indian government has come up with several export promotion policies for the textiles sector. It has also allowed 100% FDI in the sector under the automatic route.

Other initiatives taken by the Government of India are:

• In February 2024, according to the Union Budget 2024-25, the total allocation for the textile sector was Rs. 4,389.24 crore (US$ 536.4 million). Out of this, Rs. 900 crore (US$ 109.99 million) is for Amended Technology Upgradation Fund Scheme (ATUFS), Rs. 450 crore (US$ 54.99 million) for National Technical Textiles Mission, and Rs. 60 crore (US$ 7.33 million) for Integrated Processing Development Scheme.

• In February 2023, the union government approved 1,000 acres for setting up a textile park in Lucknow.

• In February 2023, according to the Union Budget 2023-24, the total allocation for the textile sector was Rs. 4,389.24 crore (US$ 536.4 million). Out of this, Rs. 900 crore (US$ 109.99 million) is for Amended Technology Upgradation Fund Scheme (ATUFS), Rs. 450 crore (US$ 54.99 million) for National Technical Textiles Mission, and Rs. 60 crore (US$ 7.33 million) for Integrated Processing Development Scheme.

• In December 2022, a total of 44 R&D projects were started, and 23 of them were successfully completed. 9777 people were trained in a variety of activities relating to the silk industry.

• In December 2022, a total of US$ 75.74 million (Rs. 621.41 crore) in subsidies was distributed in 3,159 cases under the Amended Technology Upgradation Fund Scheme, with special campaigns held in significant clusters to settle backlog cases.

• In December 2022, a total of 73,919 people (SC: 18,194, ST: 8,877, and Women: 64,352) have received training, out of which 38,823 have received placement under SAMARTH.

• The establishment of 7 (seven) PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks with a total investment of US$ 541.82 million (Rs. 4,445 crore) for the years up to 202728 was approved by the government.

• In the academic year 2022-23, the opening of a new campus of the National Institute of Fashion Technology (NIFT) in Daman. Moreover, new campus buildings are being constructed in Bhopal and Srinagar.

• Under the National Technical Textile Mission (NTTM), 74 research projects for speciality fiber and technical textiles valued at US$ 28.27 million (Rs. 232 crore) were approved. 31 new HSN codes have been developed in this space.

• In November 2022, Tamil Nadu Chief Minister Mr. M. K. Stalin announced the establishment of a "Textile City" in Chennai as part of Tamil Nadus strategy to become a major participant in the global textile industry. Additionally, the state will build a 1,500-acre textile park in the Virudhunagar district, for which SIPCOT will buy land.

• In June 2022, Minister of Textiles, Commerce and Industry, Consumer Affairs & Food and Public Distribution, Mr. Piyush Goyal, stated that the Indian government wants to establish 75 textile hubs, similar to Tiruppur, which will greatly increase employment opportunities while promoting the export of textile products and ensuring the use of sustainable technology.

• In June 2022, Amazon India signed a MoU with the Manipur Handloom & Handicrafts Development Corporation Limited (MHHDCL), a Government of Manipur entity, to encourage the development of weavers and artisans throughout the state.

• In June 2022, the Kerala government announced that it would provide free training to 1,975 candidates under the SAMARTH scheme of the textile industry.

• The Sustainable Textiles for Sustainable Development (SusTex) project by the United Nations Climate Change entity enhances the employment and working circumstances of textile artisans while promoting the sustainable production and use of environmentally friendly textiles.

• In May 2022, Minister of Micro, Small and Medium Enterprises, Mr. Narayan Rane, inaugurated the Center of Excellence for Khadi (CoEK) at NIFT, Delhi. In order to produce innovative fabrics and apparel that will meet the needs of both domestic and foreign consumers, the CoEK will seek to introduce the newest designs and adopt procedures that adhere to international standards.

• In April 2022, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Mr. Piyush Goyal, said that new Economic Cooperation and Trade Agreements with Australia and the UAE would open infinite opportunities for textiles and handloom. Indian textile exports to Australia and the UAE would now face zero duties, and he expressed confidence that soon Europe, Canada, the UK and GCC countries would also welcome Indian textile exports at zero duty.

• In March 2022, the Tamil Nadu government included a Sustainable Cotton Cultivation Mission in its agriculture budget by allocating US$ 1.86 million (Rs 15.32 Crore) to enhance the yield of organic cotton.

• In March 2022, the Ministry of Textiles, in collaboration with the Confederation of Indian Industries (CII), organized a day-long International Conference on Technical Textiles with the theme: Creating the Winning Leap in Technical Textiles.

• The Khadi and Village Industries Commission (KVIC) achieved turnover of Rs. 1.15 lakh crore (US$ 14.68 billion) in FY22, a growth of 20.54% YoY, and more than any Indian FMCG company managed in FY22.

• The Government of India has earmarked a corpus of Rs. 1,000 crore (US$ 127.72 million) dedicated for research and development of the technical textiles sector.

• In March 2022, the Bihar government submitted a proposal to the Ministry of Textiles to set up a mega hub under the PM Mitra Mega Textile Park.

• In March 2022, Tamil Nadu Chief Minister Mr. MK Stalin announced that the State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT) will set up a mega textile park in the Virudhunagar district.

• Under the Union Budget 2022-23, the total allocation for the textile sector was Rs. 12,382 crore (US$ 1.62 billion). Out of this, Rs.133.83 crore (US$ 17.5 million) is for the Textile Cluster Development Scheme, Rs. 100 crore (US$ 13.07 million) for the National Technical Textiles Mission, and Rs. 15 crore (US$ 1.96 million) each for PM Mega Integrated Textile Region and Apparel parks scheme and the PLI Scheme.

• For export of handloom products globally, the Handloom Export Promotion Council (HEPC) is participating in various international fairs/events with handloom exporters/weavers to sell their handloom products in the international markets under NHDP.

• The Ministry of Textiles has also been implementing the Handloom Marketing Assistance (HMA), a component of National Handloom Development Programme (NHDP) all across India. HMA provides a marketing platform to the handloom weavers/agencies to sell their products directly to the consumers and develop and promote the marketing channel through organizing expos/events in domestic as well as export markets.

• In November 2021, Minister of Textiles, Commerce and Industry, Consumer Affairs & Food and Public Distribution, Mr. Piyush Goyal, stated the desire to target a 3-5x time increase in the export of technical textiles worth US$ 10 billion over the next three years.

• The Indian government has notified uniform goods and services tax rate at 12% on man-made fabrics (MMF), MMF yarns, MMF fabrics and apparel, which came into effect from January 1, 2022.

• Minister of Textiles, Commerce and Industry, Consumer Affairs & Food and Public Distribution, Mr. Piyush Goyal, announced a mega handloom cluster in Manipur and a handloom and handicraft village at Moirang in Bishnupur. The mega cluster will be set up at an estimated cost of Rs. 30 crore (US$ 4.03 million) under the National Handloom Development Programme (NHDP).

• In June 2022, the Kerala government announced that it would provide free training to 1,975 candidates under the SAMARTH scheme of the textile industry.

• In March 2022, the Bihar Government submitted a proposal to the Union Textiles Ministry to set up a mega hub under the PM Mitra Mega Textile Park.

• Defence Research and Development Organisation (DRDO) is helping the Indian textile industry to produce yarns and eliminate dependence on import of Chinese and other foreign clothing for military uniforms. Indian defence sector has expressed support towards the Indian technical textile sector.

Source:https://www.ibef.ors/industrv/indian-textiles-and-apparel-industrv-analvsis-presentation

Achievements

Following are the achievements of the Government in the past four years:

• In June 2023, Government has approved R&D projects worth US$ 7.4 million (Rs. 61.09 crore) in textile sector.

• Huge funds in schemes such as Rs. 900 crore (US$ 109.99 million) for Amended Technology Upgradation Fund Scheme (ATUFS) have been released by the Government in the union budget of 2023-24 to encourage more private equity investments and provide employment.

• Sangam India Ltd, one of the foremost producers in PV dyed yarn, cotton and OE yarn and also ready to stitch fabric, has installed two solar power plants of 5 MW that, on average, helps them to bring down their carbon footprint by at least 20% per annum. SIL also plans to increase the use of recycled fibre, leading to lesser consumption of plastic waste by using it as a raw material.

Strengths

• Availability of large varieties of fibre and has a fast growing synthetic fibre industry.

• Low labour charges means that the manufacturing cost rarely spins out of control.

• India has availability of abundant raw material which helps to control the costs and reduces the lead time.

• India is one of the largest producers of cotton in the world and is also enjoys abundant supplies of polyester, silk, viscose, among others.

• Industry has large and diversified segments that provide wide variety of products.

• Indian textile industry is a self-reliant industry which has complete value chain from the procurement of raw materials to the production of finished goods.

Weakness

• Lack of technological development affects productivity and other activities across the value chain.

• The Indian industry falls short on the economies-of-scale front therefore unable to compete with nations like China.

• Indian Textile Industry is highly Fragmented Industry.

• Rigid & unfavorable labor Laws.

• Lack of Trade Membership, which restrict to tap other potential market.

• Lacking to generate Economies of Scale.

• Use of outdated technology resulted in low productivity & production capacities as compared to China.

• Comparatively high expenses like indirect taxes, power & interest.

Opportunities

• A number of initiatives have been announced to support the handloom and power loom industries.

• A number of e-marketing platforms have been developed to simplify marketing issue.

• Greater Investment and FDI opportunities are available.

• Large, Potential Domestic and International Market.

• Product development and Diversification to cater global needs.

• Elimination of Quota Restriction leads to greater Market Development.

• Market is gradually shifting towards Branded Readymade Garment.

• Low-cost players like Pakistan and Bangladesh may hinder Indias exports prospects.

• Geographical Disadvantages relating to Export & Import of goods. Indias geographical distance from major global markets of US, Europe and Japan in contrast to its rival countries are comparatively nearer. This results in high shipping expenses and lengthy lead times.

• Polyester manufacturers struggled to pass on high raw material costs due to sluggish demand.

• Continuous Quality Improvement is need of the hour as there are different demand patterns all over the world.

• Threat for Traditional Market for Power loom and Handloom Products and forcing them for product diversification.

• To make balance between price and quality in order to compete with cheaper imports.

Outlook

• The Indian textile sector considers the Union Budget 2024-25

• To be growth oriented as it will enable the textile manufacturing sectors to grow at a faster rate.

• With a view to support the “Make in India” initiative, the Central Government Launched ATUFS (Amended Technology Upgradation Fund Scheme) in place of the existing RRTUFS (Revised Restructure Technology Upgradation Fund Scheme), for technology upgradation of textile industry with one-time capital subsidy for eligible machinery.

• It is the endeavor of the Company to improve its performance by adopting new techniques of production, improve product acceptability and cutting/reducing costs wherever possible.

Financial & Operational Performance

Risks and Concerns: Your Company has established a strong risk management structure. Under this structure, the risks are identified across all business processes of the organization on continual basis. The Company endeavors to mitigate the risks on an ongoing basis by evaluating the progress of the projects being undertaken on a regular basis and close monitoring.

• Liquidity Risk: The Company is into a highly capital intensive industry segment. Non availability of funds or increased cost of funding will result in pressurized margins. The Company requires a substantial amount of long term/short term funds to meet its requirement for various Infrastructure/Construction projects. To manage this, the Company proactively manages the debt levels from banks to provide adequate liquidity for its operations.

• Government Policy Risk: There could be unfavorable regulatory measures in Government policies towards the textile industry and may impact the long term planning of the Company.

• The MAT (Minimum Alternate Tax): Regime if not taken out of the SEZs might create difficulties in the sector as SEZs and the companies in the zones might not be able to reap the benefits as originally enshrined in the SEZ act. Same risk may get augmented if the SEZs are not allowed to sell in the Domestic Tariff Area in tandem with the Free Trade Agreements with some countries

• Competition Risk: The top management of the Company reviews the risk from time to time and as a measure of risk mitigation your Company has decided to focus only on the core competency area so as to ensure that it is constantly moving up the value chain.

FINANCIAL REVIEW

During the period under review revenue of the Company decreased from Rs. 3.41 Lakh to Rs. 2.03 Lakh Further, the Net Loss after Tax increased to Rs -24.05 Lakh from Rs. -352.24 Lakh

Human Resources: Human Resource Management is one of the key functions of the Company. Your Company aims to create a working environment that attracts and retain the best people, enhance their capability and provide enough motivation to ensure highest level of productivity. The employees are encouraged to remain involved and contribute for the growth of the Company. The industrial relations during the year continued to be cordial and peaceful.

As on 31-03-2025 there were 03 permanent employees in the Company.

Cautionary Statement: The Management Discussion and Analysis Report contains forward looking statements based upon the data available with the Company, assumptions with regard to global economic conditions, the Government policies, etc. The Company cannot guarantee the accuracy of assumptions and perceived performance of the Company in future.

By the order of the Board
FOR SYBLY INDUSTRIES LIMITED
CHIRAG	HARISH
Additional Director	Additional Director
DIN:10728185	DIN:10871534
Date: 04/09/2025	Date: 04/09/2025
Place: Delhi	Place: Delhi