Trident Texofab Ltd Management Discussions

Economic overview

Global economy

The global economy in 2025 is marked by sluggish growth, heightened uncertainty, and persistent risks stemming from trade disputes, geopolitical instability, and inflationary pressures. While modest expansion continues, the pace is inadequate to offset the of recent shocks.

Key international forecasts confirm this outlook. The World Bank projects global growth at 2.7% for both 2025 and 2026, while the IMF has lowered its 2025 estimate to 2.8%, a 0.5% downgrade from earlier projections. The OECD is similarly cautious, forecasting growth of 3.1% in 2025 and 3.0% in 2026, slower than 2024 and well below pre-pandemic averages.

The slowdown spans both advanced and emerging economies. In the US, growth is expected to soften to 1.6– 2.2% amid tariff consumer sentiment. China faces a further deceleration to 4.0–4.4% as trade disruptions and domestic challenges weigh on activity. The eurozone outlook is bleaker still, with growth forecast at just 0.8–1.0%. In contrast, India remains a global bright spot, set to expand by 6.2–6.3% in 2025 thanks to strong consumption and public investment. Several factors underpin this fragile outlook. Escalating trade tensions, primarily between the US and China, have disrupted supply chains and raised costs. Although recent tariff easing has calmed markets somewhat, the scars of earlier disruptions linger, keeping business confidence low. The IMF warns that global economic uncertainty now exceeds levels seen at the height of the pandemic, leaving firms hesitant to commit to new investments.

Inflation,

The OECD projects headline inflation in G20 economies at 3.8% in 2025, with underlying rates still above central bank targets. Combined with already high debt levels, this limits the policy space available to cushion new shocks or support recovery.

Emerging and developing economies are particularly vulnerable. While some regions, including South Asia and parts of Africa, benefit per capita income growth is slowing. In many low-income countries, incomes are falling further behind those of advanced economies, reversing decades of poverty reduction progress.

In sum, the 2025 global outlook points to a fragile stabilization at low growth rates, overshadowed by significant downside risks. Trade policy uncertainty, geopolitical fragmentation, persistent inflation, and mounting debt all weigh heavily on prospects. Without decisive action to secure trade, reduce vulnerabilities, and promote inclusive growth, the risk of deeper and more lasting setbacks remains high.

Indian economy

The Indian economy in 2025 continues to stand out globally, demonstrating resilience in a challenging international landscape defined by trade tensions, subdued global growth, and geopolitical uncertainty. The IMFs April 2025 World Economic Outlook projects Indias GDP to expand by 6.2% in 2025 and 6.3% in 2026, sustaining its position as the fastest-growing major economy despite slight downward revisions. This momentum is underpinned by robust domestic demand, solid private consumption, and strong public investment, even as global growth moderates to just 2.8%.

Domestic drivers remain central to Indias performance.

Rural consumption is strengthening as inflation eases and household incomes rise. The services sector continues to lead, growing at 7.2% in FY25 on the back of IT, financial services, and hospitality. Agriculture, supported by record Kharif output and targeted government measures, is projected to expand by 3.8%. Meanwhile, industry and manufacturing grow at 6.2% despite soft external demand, with a notable achievement in electronics manufacturing—

India has reached near self-sufficiency in substantially cutting import reliance.reflects cautious Macroeconomic stability is a key factor. Headline inflation is expected to moderate to 4.2% in FY26, comfortably within the Reserve Bank of Indias target band. Building on this, the RBI initiated a cautious easing cycle in February 2025, after maintaining the policy rate at 6.5% since 2023. Fiscal consolidation efforts, supported by structural reforms and digitalization initiatives, reinforce financial stability while enabling inclusive development.

Policy focus remains on industrial upgrading and job creation. The Economic Survey 2024 25 emphasizes smart manufacturing under Industry 4.0, with initiatives such as SAMARTH Udyog centres enhancing competitiveness. Infrastructure investment and digital transformation continue to generate employment, with over 8 crore jobs created between 2017 and 2022. Concurrently, reforms under IMF-supported programs aim to stabilize public debt and bolster long-term growth potential.

Nonetheless, challenges persist. External risks include supply chain disruptions linked to the Red Sea crisis, volatile commodity markets, and broader geopolitical instability. On the domestic front, the UNs mid-2025 assessment highlights gender disparities in employment and the need for greater inclusivity in the workforce. Yet, Indias demographic dividend, combined with projected GDP growth of 6.5% in FY26 (RBI estimate), supports its trajectory toward becoming the worlds third-largest economy by 2030, surpassing Japan and Germany. smartphones, Insummary,Indiaseconomyin2025 optimism. Strong domestic demand, a dynamic services sector, and strategic reforms provide resilience against global headwinds, while prudent macroeconomic management ensures stability. As highlighted by international organizations, Indias ability to sustain momentum amid global slowdown underscores its pivotal role as a key driver of global growth in the years ahead.

Industry scenario

Global textile and apparel Industry

Textile Market

The global textilemarketdemonstratedsignificant resilience in 2024-2025, with market size reaching impressive heights despite economic uncertainties. According to recent market analysis, the global textile market size was valued at USD 1,976.84 billion in 2024 and is projected to reach USD 2,123.72 billion in 2025, and going ahead expanding at a compound annual growth rate (CAGR) of 7.35% from 2025 to 2034. By 2034, the market is expected to reach approximately USD 4,016.50 billion, reflecting the growth trajectory.

The Asia Pacific region continues to dominate the textile landscape, accounting for 54% of the global market share in 2024, driven by competitive manufacturing infrastructure, abundant raw materials, and cost-effective labor. Cotton remains the leading raw material segment, contributing 41.44% of market share due to its natural properties, breathability, and widespread consumer acceptance. The market is experiencing significant transformation through digitalization, with companies integrating IoT, AI, and advanced manufacturing technologies to enhance efficiency and sustainability.

Key growth drivers include rising demand for natural fibers, increasing fashion trends, and growing applications in technical textiles. The industry is also witnessing a shift toward sustainable production methods, with manufacturers adopting eco-friendly materials and circular economy principles to meet environmental regulations and consumer preferences for sustainable products.

Apparel Market

The global apparel market has shown remarkable growth momentum, reaching USD 1.84 trillion in 2025, representing 1.63% of worldwide GDP. The market is projected to grow at a CAGR of 2.64% between 2025 and 2029, with expectations to reach USD 2.26 trillion by 2030. Womens apparel dominates the market with the largest segment valued at USD 963.39 billion in 2025, while the United States leads globally with an estimated revenue of USD 366 billion. The industry is experiencing a fundamental shift driven by digital transformation and changing consumer behaviors. E-commerce has emerged as a critical growth driver, with the global e-commerce apparel market reaching USD 714.30 billion in 2024 and projected to hit USD 1,706.58 billion by 2034, expanding at a CAGR of 9.10%. Fast fashion markdynamics,thoughtheres continuestoinfluence robust growing consumer awareness around sustainability and ethical production practices.

Regional dynamics show Asia Pacific accounting for 40.5% of the global apparel market, with China and India being major contributors to both production and consumption. The luxury apparel segment is expected to experience the fastest growth during the forecast period, driven by high-net-worth individuals and increasing availability through online platforms. Technology integration, including AI for demand forecasting and virtual try-on experiences, is revolutionizing how consumers interact with apparel brands.

Source: Precedence Research, Grand View Research

Global Textile & Apparel Trade

e-commerce penetration, evolving

International textile and apparel trade demonstrates the industrys interconnected global nature, with total trade valued at billions annually. China maintains its position as the worlds largest textile and apparel exporter, commanding 39% of global exports, followed by India with a 5% share. The United States remains the largest importer, accounting for approximately 14% of total global trade. India, as the sixth-largest exporter globally, achieved textile and apparel exports (including handicrafts) of USD 37.7 billion in 2024-25, representing 8.63% of the countrys total merchandise exports. The overall export growth for textiles and apparel showed a 7% increase during April-October 2024-25 compared to the same period in the previous year. Ready-made garments constitute 41% of Indias total textile exports, followed by cotton textiles at 33%.

Global trade patterns are being reshaped by geopolitical factors, including US-China trade tensions, supply chain diversification, and the impact of crisis affecting logistics costs and transit times. Traditional markets including the USA, UK, and EU together account for 53% of Indias textile and apparel exports, while emerging markets in Asia and Africa present new growth opportunities. Trade agreements and free trade partnerships are becoming increasingly important, with India leveraging 15 FTAs covering markets with combined textile import demand of USD 198.9 billion.

Opportunities Driving Growth

1. Sustainable and Eco-Friendly Textiles

The sustainable fabrics market is experiencing exponential growth, valued at USD 37.26 billion in 2025 and expected to reach USD 115.72 billion by 2035 at a 12% CAGR. Consumer awareness about environmental impact, government regulations promoting circular economy principles, and brand commitments to sustainability are driving demand for organic cotton, recycled fibers, and biodegradable materials, positioning sustainability as a core competitive advantage.

2. Smart Textiles and Wearable Technology

Smart textiles represent one of the fastest-growing segments, expanding from USD 5.78 billion in 2024 to USD 7.52 billion in 2025 at a 30.2% CAGR. The market is projected to reach USD 20.76 billion by 2029, driven by healthcare monitoring applications, military protection systems, and sports performance enhancement. Integration of sensors, IoT connectivity, and AI algorithms is creating new revenue streams in personalized healthcare and fitness tracking

3. Technical Textiles Expansion

Indias technical textiles market, valued at USD 21.95 billion in 2021-22, is growing at 8-10% CAGR annually, ranking as the worlds fifth-largest market. Applications span aerospace, automotive, healthcare, construction, and agriculture sectors. Government initiatives including the National Technical Textiles Mission and production-linked incentive schemes are accelerating domestic manufacturing capabilities and reducing import dependence in high-value applications.

4. Digital Transformation and Industry 4.0

Digital transformation is revolutionizing textile manufacturing through IoT integration, AI-driven demand forecasting, and automated production systems. Companies adopting digital technologies report 20-30% cost reductions and improved operational efficiency.

Cloud-based platforms enable real-time supply chain visibility, while 3D design tools and virtual prototyping accelerate product development cycles and reduce time-to-market significantly.

5. E-commerce and Direct-to-Consumer Growth

The e-commerce apparel market is expanding rapidly at a 9.10% CAGR, reaching USD 779.30 billion in 2025. Digital platforms enable brands to access global markets, implement personalized shopping experiences through AI recommendations, and reduce traditional retail overhead costs. Mobile commerce, virtual try-on technologies, and social commerce are creating new customer engagement channels and driving conversion rates.

6. Emerging Market Expansion

Developing economies, particularly in Asia-Pacific and Africa, present significant by rising disposable incomes, urbanization, and growing middle-class populations. Indias domestic apparel market alone is projected to grow at 9.7% CAGR, reaching USD 50 billion by 2028. These markets offer both manufacturing cost advantages and increasing consumer demand for branded and premium textile products.

7. Circular Economy and Recycling Technologies

The textile industry is adopting circular economy principles through advanced recycling technologies, upcycling processes, and closed-loop production systems. Innovations in chemical recycling, fiber-to-fiber recycling, and waste-to-energy conversion are addressing environmental concerns while creating new business models. Companies implementing circular practices are experiencing improved brand loyalty and access to sustainable financing options.

.8. Personalization and Mass Customization

Consumer demand for personalized products is driving adoption of mass customization technologies, including 3D knitting, digital printing, and on-demand manufacturing.

These technologies enable brands to offer unique designs, custom fits, and personalized styling while maintaining cost efficiency. The trend toward individuality and self-expression is creating premium pricing opportunities and reducing inventory risks.

9. Healthcare and Medical Textiles

The medical textiles segment is experiencing unprecedented growth due to aging populations, increased healthcare spending, and hygiene requirements. Smart textiles with integrated sensors for patient monitoring, antimicrobial fabrics for infection control, and biodegradable implantable textiles represent high-value growth areas. Post-pandemic awareness has accelerated demand for protective equipment and hygiene-focused textile products.

10. Cross-Industry Collaboration and Innovation

Strategic partnerships between textile manufacturers, technology companies, and end-user industries are accelerating innovation and market penetration. Collaborations in automotive textiles, aerospace applications, and construction materials are creating new revenue streams. Fashion-tech partnerships are developing innovative wearable solutions, while textile-agriculture collaborations are advancing sustainable fiber production and smart farming applications.

Indian Textile and Apparel Industry

The Indian textile and apparel industry stands as one of the countrys most dynamic and significant economic sectors, contributing substantially to GDP, employment generation, and export earnings. This comprehensive overview examines the current state of the industry, its growth trajectory, and the key drivers propelling it forward.

Textile Market Overview

Indias textile market has demonstrated remarkable resilience and growth, valued at USD 146.55 billion in 2024 and projectedw to reach USD 213.51 billion by 2033, exhibiting a steady CAGR of 3.85%. The sector encompasses the entire value chain from cotton production to technical textiles, with India ranking as the worlds second-largest textile producer and in market size.

The domestic market contributes approximately 80% to the total market size, while exports account for 20%.

Within the domestic segment, apparel holds a dominant 75% share, followed by technical textiles at 19% and home textiles at 7.5%. Indias textile industry benefits from competitive manufacturing costs, skilled labor, and diverse production capabilities spanning both traditional handloom sectors and modern industrial manufacturing. The industrys strength lies in its complete value chain integration, from raw material production to finished goods manufacturing. Cotton production is projected to reach 7.2 million tonnes by 2030, supporting the growing domestic and export demands. The sector provides direct employment to over 45 million people and produces approximately 22,000 million pieces of garments annually.

Apparel Market Overview

Indias apparel market represents the fastest-growing segment within the textile industry, valued at USD 115.70 billion in 2024 and projected to grow to USD 171.60 billion by 2034 at a CAGR of 4%. The market demonstrates strong momentum with revenue expected to hit USD 109.5 billion in 2025 and continue growing at 3.24% annually through 2029.

The apparel sector is experiencing significant transformation driven by changing consumer preferences, particularly among Indias expanding middle class with a median age of 28 years. Womens apparel leads the market with USD 53.13 billion, while the overall market is expected to reach 41.4 billion pieces by 2029.globally Rural consumption is strengthening as inflation eases and household incomes rise, contributing to 6.2-6.3% growth projections for 2025.

Ready-made garments (RMG) exports reached USD 1.34 billion in July 2025, marking a 4.75% growth compared to the previous year. The domestic apparel market benefits from robust private consumption, stable economic conditions, and strategic public investment. E-commerce penetration has revolutionized market access, with the

D2C apparel market expected to grow by 20% annually, reaching USD 10 billion by 2025. The sector also benefits from 98% sales coming from non-luxury segments, making it accessible to broader consumer demographics.

Growth Opportunities Driving the Global Textile & Apparel Industry

1. Sustainability and Eco-Friendly Manufacturing

The global shift toward sustainable and circular fashion presents unprecedented opportunities for textile manufacturers. Companies are increasingly adopting eco-friendly practices including recycling, water conservation, and bio-friendly textiles production. Major Indian manufacturers are implementing regenerative organic farming, plastic recycling, and governmental schemes like PM MITRA to enable affordable sustainable manufacturing. Solar energy adoption by textile factories and waterless dyeing processes are reducing environmental footprints while improving operational efficiency.

2. Digital Transformation and Industry

4.0 Integration

Automation and digitalization are revolutionizing textile manufacturing through IoT, AI, blockchain, and big data analytics integration. The textile industrys automation market will grow by USD 664 million between 2025-2029, enabling 24/7 production cycles with minimal human error. Smart manufacturing systems powered by IoT devices provide predictive maintenance capabilities, while AI-driven demand forecasting optimizes supply chain efficiency. Digital platforms enable global reach with personalized shopping experiences and virtual fitting rooms.

3. Technical Textiles and High-Performance Materials

Technical textiles represent a high-growth segment with applications across automotive, healthcare, infrastructure, and defense sectors. Indias National Technical Textiles Mission focuses on research, innovation, market development, and export promotion. Smart textiles that can sense, react, and adapt are gaining traction, including self-heating jackets and waterproof breathable clothing. The segment benefits from specialized applications requiring advanced materials and value-added products commanding premium pricing.

4. E-commerce and Direct-to-Consumer Growth

Digital commerce transformation is creating new market opportunities with the D2C apparel market growing at 20% annually. Online platforms including virtual try-ons, 3D modeling, and AI-driven recommendations enhance customer experiences. E-commerce penetration in rural and urban markets expands consumer accessibility, while hyper-local brands cater to specific regional preferences. Global e-commerce platforms enable textile manufacturers to reach international markets directly.

5. Government Policy Support and Investment Incentives

Policy frameworks including PM MITRA Parks, PLI schemes, and technical textile missions create favorable investment environments. Seven PM MITRA parks with USD 95,000 crore projected investment will establish integrated textile value chains. PLI scheme targeting man-made fabrics and technical textiles offers incentives worth INR 10,683 crore. Union Budget 2025-26 allocated INR 5,272 crore representing a 19% increase for the textile ministry.

6. Geographic Diversification and

Supply Chain Resilience

Geopolitical disruptions in traditional manufacturing hubs create opportunities for alternative sourcing destinations. India benefits from political stability in countries like Bangladesh as global brands diversify supply chains. Free Trade Agreements with 15 partner countries provide preferential market access worth USD 198.9 billion in textile import demand. Strategic location and competitive manufacturing costs position India as a reliable global supplier.

7. Value-Added Product Development

Growing demand for specialty and high-value textile products drives innovation in functional, aesthetic, and performance-driven materials. Sporttech textiles, medical textiles, and geo-textiles command premium pricing while serving specialized applications. Product differentiation through comfort, performance, and design innovation enables manufacturers to capture higher margins in competitive markets. Private label development creates opportunities for customized product

8. Emerging Market Expansion

Rising middle-class populations in developing economies create substantial demand for textile products. Indias domestic market growing at 9% CAGR provides a strong foundation for expansion. African and South Asian markets present opportunities for domestic demand-driven growth. Urbanization trends and changing lifestyle preferences in emerging markets drive demand for modern textile products and fashion apparel.

The Indian textile and apparel industry stands at a pivotal juncture, benefiting from strong domestic demand, government policy support, technological advancement, and global market opportunities. With projected growth to USD 350 billion by 2030 and export targets of USD 100 billion, the sector is well-positioned to capitalize on these growth drivers and strengthen Indias position as a global textile powerhouse.

Company overview

Trident Texofab Limited, established in 2008 in Surat, Gujarat, was founded by Mr. Hardik Desai and Mr. Chetan Jariwala. Initially, the Company focused on textile trading, offering a wide portfolio of home furnishing products including bed sheets, curtains, and upholstery, as well as expanding into categories like scarfs, pareos, suiting, and shirting. Over the years, Trident Texofabs trading operations experienced significant growth and success, leading to its transition from a private entity to a publicly listed Company. In 2017, after a decade in the market, the Company launcheditsInitialPublicOffering(IPO) esults. The Company achieved a 23% on the Bombay Stock Exchange (BSE), positioning itself for larger-scale operations and entry into manufacturing.

The following year, Trident Texofab undertook its first greenfield manufacturing project in Surat, initiating the Companys transition into manufacturing. Since then, it has built production units for grey fabrics and finished garments, and expanded its capabilities. Today, Trident Texofab operates as a semi-composite textile Company, actively involved in both manufacturing and trading. Its portfolio spans home furnishings, garments, technical textiles, as well as polyester and poly-blend fabrics. Looking ahead, the Company plans to further expand, driven by its dedication to excellence and innovation within the textile industry.

FY25 performance discussion

Trident Texofab demonstrated notable resilience in its FY25financial growth in Revenue from Operations, reaching 12,205.62 Lakhs compared to 9,948.34 Lakhs in the previous year, indicating stronger market presence. Profit Before

Tax (PBT) more than tripled, rising from lower base of

85.80 Lakhs to 257.57 Lakhs, and Profit After Tax (PAT) increased from 107.98 Lakhs to 251.01 Lakhs, driven primarily by higher revenues and efficient cost control.

Financial ratios

Particulars	FY25	FY24	% Variance	Reason for Variance
Current Ratio	1.94	1.33	46.61%	Current ratio has increased compared to previous year on account of increase in current assest.
Debt-equity Ratio	0.63	2.47	-74.60%	There is a increase in debts and also increase in capital due to prefential issue which leads variation in ratio.
Debt service coverage ratio	0.21	0.17	27.32%	Earnings available for debt service has been incerased
Return on equity ratio	0.05	0.07	-21.90%	NA
Inventory turnover ratio	7.55	7.31	3.23%	NA
Trade receivables turnover ratio	3.15	2.82	11.69%	NA
Trade payables turnover ratio	6.86	5.06	35.72%	Net credit purchase has been increased.
Net capital turnover ratio	3.41	7.77	-56.11%	Due to increase in Shareholder Fund from Prefential Issue , Ratio is decreased.
Net profit ratio 0.02 0.01 84.97%	Net profit is			period which resulted in increase in ratio.
Return on capital employed	0.09	0.09	-5.37%	NA
Return on investment	-	-	-	The company has no current investments.

Risks and Concerns

• Raw Material Pricing: Volatility in raw material prices can directly impact profitability.

• Credit Risks: The company remains exposed to counterparty risks in assessing customer creditworthiness.

• Logistics Risks: Operational efficiency is challenged by complex logistical processes.

• Market Risks: Geopolitical events, such as the Russia-

Ukraine conflict, may adversely affect market demand and conditions.

Opportunities and Threats

Opportunities

• Skilled workforce and lower production costs sustain Indias global competitive advantage.

• Production-Linked Incentive (PLI) Scheme ( 10,683 Crores / US$1.44 billion over five years) fosters growth in man-made fibres and technical textiles.

• The technical textiles market is projected to reach US$23.3 billion by 2027, supported by rising consumer awareness, disposable incomes, and broadening applications.

• Schemes like SITP, TUFS, and MITRA Park boost investments, expand infrastructure, and improve market access.

• Increasing demand for sustainable textiles presents new business avenues.

• Rapid digital transformation and growth of e-commerce create fresh market opportunities.

• Smart manufacturing adoption enhances efficiency and innovation capabilities.

Threats

• Fierce competition from low-cost producers such as Bangladesh, Vietnam, and new entrants.

• Inflation and uncertain macroeconomic conditions may impact global demand and margins.

• Geopolitical risks (trade policy changes, protectionism, in reporting regional conflicts) threaten export stability.

• Persistent supply chain vulnerabilities and rising freight costs can disrupt operations.

• Stricter sustainability and compliance requirements add to operational complexity.

Outlook

The Companys outlook for the future remains positive. It is currently assessing multiple projects to further expand its manufacturing operations, a move expected to spur growth and boost profitability margins. In the upcoming year, the Company is prioritizing an increase in revenue generated from manufacturing, a strategy designed to significantly

Internal control and adequacy

The Company has established a robust and comprehensive internal control framework to ensure that all assets are securely protected from unauthorized use or disposal. This system guarantees that every transaction is properly authorized, recorded, and reported, while also optimizing resource utilization and enhancing operational efficiency in compliance with relevant laws. According to the management, these controls are both adequate and satisfactory.

Designed to suit the size and nature of the business, the internal control system provides reasonable assurance regarding asset security and the accuracy of transaction processes and reporting. It also ensures that operations consistently follow the Companys policies and procedures. The Internal Audit Committee, together with Management, has reviewed these controls and recommended further improvements, which have been duly implemented to further strengthen the system.

Human resource development and industrial relations

At Trident, employees are recognized as the cornerstone of the companys growth. The organization is dedicated to fostering a workplace where individuals can learn, develop, and prosper. Trident invests in continuous engagement and skill-building initiatives, empowering its workforce with up-to-date knowledge, advanced techniques, and expertise.

The company also prioritizes strengthening its brand to attract, hire, and retain top talent. Throughout the period under review, employee relations remained positive, cordial, and harmonious across all levels, and Trident remains committed to preserving this supportive environment going forward. As of March 31, 2025, Trident employed 65 permanent staff members.

Cautionary note

Please note that certain statements within this communication are forward-looking and subject to inherent risks and uncertainties. Actual outcomes may vary materially from those indicated due to factors such as shifts in geopolitical conditions, changes in government policies, tax regulations, raw material pricing, and broader economic trends both in India and internationally. Trident clarifies that it assumes no obligation to publicly update or revise any forward-looking statements, irrespective of new developments or future events. Accordingly, readers are advised not to place undue reliance on such forward-looking information.