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The Indian textile industry dates to ancient times, about five thousand years ago. The industry has changed tremendously, having transitioned from the handloom of pre-colonial India to the huge modern machinery that exists today. The textile industry is valued at over 200 billion U.S. dollars and contributes about two percent of the countrys GDP. Moreover, India is the second largest producer of textiles in the world after China, catering to both domestic and exports market.

The country consistently holds positions within the range of 3 to 7, showcasing its prowess as one of the worlds leading exporters. In contrast, import rankings fluctuate within the range of 10 to 60. This dual positioning underscores Indias robust standing in the global trade scenario, emphasizing its role as a major player in the international market.

Additionally, the industry offers enormous employment opportunities for skilled and unskilled workers. It is one of the main sources of livelihood for women in rural India. The states of Gujarat, Maharashtra, and Tamil Nadu are leading in textile production in India, however other states have come out with attractive incentive schemes to grow their industry. The production of fibers, yarn, fabric, dyeing, and printing textiles, as well as garment production, are all part of the countrys vast textile sector. Furthermore, the industry generates an array of products for both domestic and international markets.

The textile industry has received noteworthy policy support, particularly within the framework of the "Make in India" initiative. Additionally, the sector has benefitted from policies such as the Scheme for Integrated

Textile Parks (SITP) and the Pradhan Mantri MITRA (Mission for Integrated Textile Research & Application) for the promotion of innovation and research. These policies collectively reinforce the industrys position and contribute to its growth trajectory.

SOME SIGNIFICANT DATA ON THE TEXTILE SECTOR:

India is the worlds second-largest producer of textiles in the world.

India produces the most cotton accounting for 23 percent of global production, with about 39 percent of land area under cultivation.

During April, 2023-March,2024, Indian Textiles Exports registered a growth of 2.62% over the previous year while Apparel Exports registered a degrowth of (10.25%) during the same time.

Cumulative Exports of Textiles and Apparel during April, 2023-March, 2024 have registered a degrowth of

(3.24%) as compared to previous year.

Cotton prices stayed range bound during the year but due to unwanted global demand, Indian exporters could get no advantage of the same. Further, vis-a-vis international prices we were 50% of the year our cotton was expensive.

During April, 2023- March, 2024 Import of Textile yarn Fabric registered a degrowth of (12.98%) as compared to previous year .

A. INDUSTRY STRUCTURE

Indias textile industry is structured into two main sectors: the organized sectors which include large mills and unorganized sector, which consists of small scale, informal mills. The industry is segmented into various phases such as spinning, weaving, finishing and apparel manufacturing, each playing a critical role in the overall process. The organized sector typically uses modern machinery and adheres to labour laws, providing higher wages and stable employment to its workers. On the other hand, the unorganized sector often operates with older equipment and less formal working conditions, contributing significantly to employment but often under less regulated environments.

B. INNOVATIONS IN TEXTILES

Advanced Textile Manufacturing Techniques

The integration of advanced textile manufacturing techniques in India marks a pivotal shift in the industrys dynamics. The utilization of computerized knitting machines and automated looms has not only accelerated production rates but has also brought about a remarkable level of precision previously unattainable through manual labor. These technologies enable the creation of intricate patterns, designs, and textures with unparalleled accuracy, meeting the demands for diverse and complex fabric compositions.

Smart Fabrics and Wearable Technology

Smart fabrics and wearable technology represent a pivotal intersection of fashion and cutting-edge innovation, redefining the very essence of garments. Beyond the mere integration of sensors and conductive materials, these fabrics signify a leap towards a future where clothing becomes an extension of oneself. Indian researchers and designers are meticulously delving into the realm of wearable tech, not merely to create gadgets but to craft experiences.

Sustainable and Eco-friendly Practices

The Indian textile industry is witnessing a shift towards circular economy principles. Manufacturers are increasingly adopting strategies that prioritize the entire lifecycle of textiles, aiming to minimize waste generation and maximize resource efficiency. Initiatives such as closed-loop production systems, where materials are recycled or regenerated at the end of their life cycle, are gaining momentum. This approach reduces environmental impact and fosters a more resilient and resource-efficient industry, contributing significantly to the global sustainability agenda.

3D Printing and Digital Design

3D printing is not only revolutionizing the design aspect but also impacting the production process itself. Indian textile manufacturers are exploring the feasibility of using 3D printing for actual garment production.

This innovative approach has the potential to reduce material waste significantly, as it allows for on-demand manufacturing, creating items precisely as needed without excess inventory.

E-commerce and Virtual Try-On

The integration of virtual try-on technologies improves the shopping experience and addresses one of the significant challenges of online shopping sizing and fit. By allowing customers to visualize how a particular garment would look and fit on their body, these AR and VR solutions mitigate uncertainties associated with size variations among different brands.

Artificial Intelligence in Fashion

AI-powered tools are revolutionizing the design process in the fashion industry. These sophisticated algorithms can analyze vast amounts of data, including social media trends, historical fashion archives, and consumer preferences, to assist designers in creating innovative and market-relevant collections. By identifying patterns and understanding evolving tastes, AI augments the creative process, providing designers with invaluable insights and inspiration to develop captivating and trendsetting designs. This fusion of technology and creativity not only accelerates the design phase but also fosters a deeper connection between fashion and the ever-evolving consumer desires.

Collaborations and Cross-Industry Innovations

In the fashion industry, collaborations across various industries have sparked a wave of creative innovation. Textile manufacturers in India are increasingly joining forces with fashion tech startups, design houses, and even entertainment companies to redefine the boundaries of style and functionality. These collaborations are paving the way for futuristic fashion experiences, incorporating augmented reality (AR) and virtual reality (VR) elements into runway shows and retail spaces. Moreover, partnerships with leading fashion influencers and celebrities are influencing the design process, enabling the creation of clothing lines that resonate deeply with contemporary consumer preferences and cultural trends. These cross-industry collaborations in the fashion domain exemplify the dynamic nature of Indian textile innovations, bridging the gap between technology, artistry, and consumer appeal.

C. OPPORTUNITIES:

Increasing Demand for sustainable and organic textiles:

This open avenue for India to innovate and capture new markets segments focused on eco-friendly products.

Market entry via bilateral negotiations:

Due to bilateral agreements between participating nations, trade between regional trade blocs is expanding.

Information technology integration:

In the production of clothing, "Supply Chain Management" and "Information Technology" are essential. The availability of EDI (Electronic Data Interchange) facilitates quick, simple, transparent communication and minimizes duplication.

The Possibility of High-Value Items:

India has the chance to raise its UVRs (Unit Value Realization) through rising up the value chain, creating value-added goods, and developing a steadily growing number of technologically advanced goods.

Technical textiles, product development and diversification, FDI, and brand awareness are just a few of the prospects available to the Indian textile sector. The Indian textile sector can maintain its current expansion and prosper in the near future thanks to technical fabrics. Additionally, it will aid in the development of the sector (Rakshit, Hira, and Gangopadhyay, 2007). India uses relatively little technological textiles. In the upcoming years, both woven and nonwoven technology textiles will prosper in India.

Scheme for Integrated Textile Park (SITP)

SITP is launched to build world class textile manufacturing infrastructure in India. SITP was launched in 2005. SITP was aimed to set up textile manufacturing units under PPP (Public Private Partnership) model.

Objective of SITP is to provide the industry with world-class state of the art infrastructure facilities for setting up their textile units and attract foreign investors to the domestic textile sector. Each Integrated textile park under this scheme normally have 50 units. Government of India is also providing funding support to start the projects maximum upto 40 crores. Currently 1947 units are operational across the country under SITP scheme. Out of 1947 units, 454 units are operational in South Region, of which 42 units are operational in the State of Karnataka.

Scheme for Incubation in Apparel Manufacturing (SIAM)

The Government is implementing the Scheme for Incubation in Apparel Manufacturing (SIAM) which was launched on pilot basis in January 2014. The Scheme is a demand driven scheme. The objective of the

Scheme is to promote entrepreneurs in apparel manufacturing by providing them an integrated workspace and linkages based entrepreneurial ecosystem with plug and play facility which help them in reducing operational and financial cost for establishing and growing a new business. The scheme envisages promoting entrepreneurship in apparel manufacturing, creating additional manufacturing capacity and generating additional employment opportunities. Three projects have been sanctioned by the Government one each in the States of

1. (Gwalior) Madhya Pradesh,

2. (Bhuvneshwar) Odisha and

3. (Panipat) Haryana.

Production Linked Incentive (PLI) Scheme

The PLI Scheme is intended to promote production of MMF Apparel & Fabrics and Technical Textiles products in the country to enable textile industry to achieve size and scale; to become globally competitive and a creator of employment opportunities for people. The scheme is to support creation of a viable enterprise and competitive textile industry. The central government has designated nearly Rs 11000 Crore to fulfill the objectives of the PLI schemes. The Scheme is in operation from 24.09.2021 (Date of Notification) to

31st March 2030 and the incentive under the Scheme will be payable for a period of 5 years only.

Production Linked Incentive (PLI) Scheme for textiles for Man Made Fibre Fabrics & Apparel, and Technical Textiles has been launched in 2021-22. It is expected to attract investment of Rs. 19000 crore for manufacturing of notified product of the sector and will be able to provide employment opportunity for 7.5 lakh persons.

PM Mega Integrated Textile Regions and Apparel (MITRAs) Parks Scheme notification Ministry of Textiles has issued to set up 7 Mega Integrated Textile Region and Apparel (PM

MITRA) Parks with a total outlay of Rs. 4,445 crore. It is hoped that the PM MITRA Parks will have world-class industrial infrastructure which would attract cutting age technology and boost FDI and local investment in the textiles sector.

Ministry of Textiles (MoT) has launched PM Mega Integrated Textile Regions and Apparel Parks

(MITRAs) Scheme to strengthen the Indian textile industry by way of enabling scale of operations, reduce logistics cost by housing entire value chain at one location, attract investment, generate employment and augment export potential. The scheme will develop integrated large scale and modern industrial infrastructure facility for total value-chain of the textile industry for example, spinning, weaving, processing, garmenting, textile manufacturing, processing & printing machinery industry. State governments can send proposal to central government to set up Mega Textile Parks in their state. The State government will have to provide minimum 1000 acre land to develop Textile Park in Joint Venture under the name of Special Purpose Vehicle (SPV). State Govt. will hold

51% equity and Central Govt. will have 49% equity in the textile park development project.

PM Mega Integrated Textile Regions and Apparel (MITRAs) Parks Scheme to set up 7 Mega Textiles

Manufacturing Parks in the country has also been launched in 2021-22. This will reduce logistics cost and will improve Competitiveness of Indian textile manufacturing. Once completed each park is expected to provide employment to 1 lakh persons directly and 2 lakh persons indirectly.

D. THREATS: a. Decline in the fashion cycle:

The number of seasons per year has increased, shortening the cycle of fashion as a result.

b. Formation of Trading Blocks:

The world trade environment has changed as a result of trading blocs like NAFTA, SAPTA, etc. If there were bilateral agreements, Indian exports would suffer significantly. Two major markets , Europe &

USA are giving lower duty access to some competitors making Indian products less competitive. c. Continued global disturbances due to bilateral wars. d. It is clearly found that, China shows the greatest and big challenge to the Indian textile industry on and around the international market. India is also threatened because of the low-cost producers such as Pakistan and Bangladesh, which can decrease Indias demand for exports in the future. Another point of threat is Indias geographic distance from the US, Europe, and Japans three largest markets, as opposed to rivals Mexico, China, etc., which are geographically closer. Long lead times and high transportation costs are the results of great distance.

E. SEGMENT WISE PERFORMANCE

The company operates in single segment of Manufacturing and sales of Textile goods. The turnover of the company has increased to Rs. 21,102.89 lakhs in current financial year as compared to Rs. 20302.72 lakhs in the preceding financial year.

F. OUTLOOK

The year 2023-24, the global disturbances grew with the Israel-Palestine conflict leading to spurt in export freight rates and continued global slowdown.

The global conflicts would be a critical thing in export demand on which the entire industry is banking on. Definitely exports are expected to be better as pipeline inventory is surely at a very low level though trade confidence to buy and stock still has not returned either domestically or globally.

The UK FTA is expected within this year and that would be a big push to export demand of apparels. EU FTA is still seems 18-24 months away.

The most critical changes that we shall see, would be more inward in the Company. Debt levels in April,

May have reduced by 40% and would reduce the interest bill by an estimated Rs 6 crores per annum due to selling of the Companys Gajroula unit and shifting all manufacturing operations to Tamil Nadu and West Bengal.

Further the overheads of the Company would reduce as operations would run normally without Gajroula where huge cost was borne by way of operational overheads and interest. Production would be consolidated in Tamil Nadu and West Bengal.

The Company also plans to strengthen its Surat operations recognising the strong changing importance of blends and 100% Manmade fibres in the domestic casual wear market and slowly expected to perpetuate to the export market.

New product development is all based on MMF performance fibers, better processing finishes, and enhanced consumer experience. However, all products would be keeping the basic principle of delivering value for money to the consumer and will not be reaching out to a small percentage of premium / elite consumers.

Dependence on cotton fiber is being slowly but steadily reduced especially in its casual wear range by using alternative fibers and finishes to ensure the consumer experience is not compromised in any fashion.

The good news is that raw material prices are stable and company capacity utilisation is expected to pickup with consolidation of operations. The companys clear focus is on its branded garment sales of TT & HiFlyer apart from the value-added fabric segment. A lot of emphasis is being put on new value-added products.

Things have been extremely slow over the last 2 years, however, the Company is fully confident that things are going to pick up and will see a sharp uptick in demand in the 2nd half of the year and the Indian consumption story is intact. Textiles has seen the longest ever sustained slowdown in global demand, and with pipeline inventory at abysmal levels. The Company would be using B2C and B2B E-commerce channels to foray into the weaker markets, by leveraging the existing network of these channels to ensure quicker and deeper penetration at a lower cost. Advertisement policy is very clear and would focus only on its strong markets by doing Point of Sales publicity and using social media for targeting strong markets.

The Company in the last few years has gone through a bad phase due to various headwinds but luckily it is emerging with a stronger character and poise to build its growing knitted casual and active wear portfolio for all genders that have seen very good traction and demand. It sees a strong story of consumption and exports unfolding.

The most important change is the improved risk profile of the business, hence less volatility in earnings will be there and a more consistent growth trajectory can be expected. The restructuring exercise to reduce debt and business risk profile is complete and the Company starts again to revive its old glory, turnover and profits.

G. RISK Financial Risk

The textile industry faces various financial risks, from having lenient payment terms to negotiating weak contracts. You must practice caution to ensure prompt payments for items delivered, which is possible through various strategies, including placing requirements for advanced payments, leveraging invoice factoring, seeking bank guarantees, and insuring trade credit. Furthermore, be sure to evaluate the risk scores of your current and potential customers to minimize the likelihood of non-payment.

Operational Risk

These risks have a broad scope that covers elements like workers health and safety, product quality, management externalities, and regulatory compliance. Monitoring factory conditions and work processes can help gauge your overall risk exposure on specific operations and facilitate the necessary improvements.

Supply Chain Risk

A study by the Institute of Supply Management revealed that about 75 percent of organizations reported supply disruptions since the commencement of the pandemic, and this brought about a renewed focus on supply chain risk mitigation. Transparency in sharing insights and data can improve your performance.

Industry Risk

With a birds-eye view of the entire industry, you must closely follow trends in trade policies, competitive landscape disruptions, and macroeconomic developments. Its also essential to monitor changes to your controls, especially in todays business environment that experiences quick and frequent adjustments. Staying ahead of these risk factors will help you anticipate market developments and adapt your business strategies accordingly.

Compliance Risk

To stay ahead of compliance risk, organizations in the textile industry must meticulously understand the regulations governing their sector, evaluate their adherence level with each, identify any control setbacks, and take relevant corrective measures. These steps will prevent the fines and reputational damage resulting from non-compliance.

H. RISK MANAGEMENT

Company has a well defined risk management framework in place. Further, it has established procedures to periodically place before the committee and Board, the risk assessment and management measures.

The Company has reworked its dependence on cotton fibre and has shifted more of its fabric and garments to cotton/manmade fibre blends to reduce the risk of its business due to cotton volatility

However, we believe that risk has not subsided yet and we are constantly monitoring the situation.

The continuous use of digitalization in life is also an important signal that the Company needs to connect more digitally with its distributors, retailers, and customers. The Company is continuously working on the same and recognises the importance to embrace technological changes sooner than later.

The Risk Management Policy may be accessed on the Companys website at the link . http://www.ttlimited. co.in /investor/companypolicies.

I. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year under review, the Company achieved Revenue from operations of Rs. 21,102.89 lakhs as compared to Rs. 20302.72 lakhs in the previous financial year. Further, the Company has earned profit after tax and exceptional items of Rs. 478.82 lakhs in the current financial year as against net loss of Rs. (1259.86) lakhs in the previous financial year.

J. FINANCIAL RATIOS

Ratios 2023-24 2022-23 % Variation Reason for Changes
Debtors Turnover 6.80 6.04 12.71% Not applicable
Inventory Turnover 1.88 1.80 4.03% Inventory Turnover Ratio is low due to lower turnover due to recessionary conditions.
Interest Coverage Ratio 0.97 0.29 231.93% Interest coverage ratio has been increased due to higher profit margin
Current Ratio 1.50 1.29 16.76% Not applicable
Debt Equity Ratio 1.80 2.22 (19.25%) Not applicable
Operating Profit Margin 0.0017 (0.04) (104.25%) Not applicable
Net Profit 0.02 (0.06) (135.00%) Net Profit has increased due to significant high in turnover and margin
Return on Net worth Ratio 0.07 (0.17) (138.65%) Return on net worth is increased due to higher net profit and turnover against the immediate proceeding year

K. INTERNAL CONTROL SYSTEM

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The internal Audit functions reports to the Chairman of the Audit Committee and to Chairman and Managing Director of the Company.

The Internal Audit monitors and evaluates the efficiency and adequacy of internal control systems in the company. Its compliances with operating systems, accounting procedure and policies at all locations of the Company.

L. HUMAN RESOURCES DEVELOPMENT

" An organization is only as good as the people within" is an axiom, which the company understands and appreciates deeply. The Company continues to emphasize on its commitment to acquiring, developing and enhancing its human resources. Recruitment and retention of intellectual capital is a key management exercise. The Companys human capital constitutes a diverse pool of knowledge, a judicious mix of youth, imaginations, risk – taking ability and seasoned experience.

The Company follows a continuous performance appraisal system to ensure the employees are dynamically being trained and appraised about improvement areas and performance gaps. Further the management maintains an open door policy, to ensure free flow communication with all levels.

M. DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements of the Company are prepared in accordance with Indian Accounting Standards (Ind AS) under historical cost convention on accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act 2013(the Act) and guidelines issued by the Securities & Exchange Board of India (SEBI). The Ind AS are prescribed under section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standard) Rules, 2015 and relevant amendment rules thereafter.

N. CAUTIONARY STATEMENTS

Statements made in this report forming part of the disclosure related to Management, Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be ‘forward–looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could influence the Companys operations include economic developments within the country, demand and supply conditions in the industry, input prices, changes in government regulations, tax laws, and other factors such as litigation and industrial relations.

O. ACKNOWLEDGEMENT

The Directors of the Company wish to express their appreciation for the continued co–operation of the

Central and State Governments, bankers, financial institutions, customers, dealers and suppliers and all the valuable assistance received from the shareholders. The Directors also wish to thank all the employees of the Company for their contribution, support and continued cooperation throughout the year.

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