Today's Top Gainer
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MACRO ECONOMIC ENVIRONMENT
India has emerged as the fastest growing major economy in the world as per the Central Statistics Organisation (CSO) and International Monetary Fund (IMF) and it is expected to be one of the top three economic powers of the world over the next 10-15 years, backed by its strong democracy and partnerships. Indias GDP is estimated to have increased 6.6 per cent in 2017-18 and is expected to grow 7.3 per cent in 2018-19. Indias gross domestic product (GDP) at constant prices grew by 7.2 per cent in September-December 2017 quarter as per the Central Statistics Organisation (CSO). Corporate earnings in India are expected to grow by 15-20 per cent in FY 2018-19 supported by recovery in capital expenditure, according to JM Financial.
Indias textiles sector is one of the oldest industries in Indian economy dating back several centuries. Even today, textiles sector is one of the largest contributors to Indias exports with approximately 13 per cent of total exports. The textiles industry is also labour intensive and is one of the largest employers. The textile industry has two broad segments. First, the unorganised sector consists of handloom, handicrafts and sericulture, which are operated on a small scale and through traditional tools and methods. The second is the organised sector consisting of spinning, apparel and garments segment which apply modern machinery and techniques such as economies of scale.
The Indian textiles industry is extremely varied, with the hand-spun and hand-woven textiles sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the other end of the spectrum. The decentralised power looms/ hosiery and knitting sector form the largest component of the textiles sector. The close linkage of the textile industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles make the Indian textiles sector unique in comparison to the industries of other countries. The Indian textile industry has the capacity to produce a wide variety of products suitable to different market segments, both within India and across the world.
STRENGTHS AND OPPORTUNITIES
1. Large and diversified segments in this industry that provide wide variety of products.
2. Natural demand drivers including rising income levels, increasing urbanisation and growth of the purchasing population drive domestic demand.
3. New Product development which needs additional focus in Indian Companies in order to move up the value chain and capture a great global market share.
4. Vibrant domestic market, enabling manufacturers to spread out risk.
5. Abundant raw material availability allowing the industry to control costs and reduce overall lead times across the value chain.
WEAKNESS AND THREATS
1. Lack of desirable levels of Technological Development affect the productivity and other activities in whole value chain.
2. Competition in domestic market by offering better quality and lower prices.
3. Intense competition in domestic market.
4. Acute power shortage. Frequent electricity cuts and load shedding leads to loss of man hours and low production in the mills.
5. Differential Tax treatment within products verities, grey and finished of fabrics etc.
6. Labour related issues such as threat to safety and health of workers, poor working environment, and exploitation of children, strict labour laws and skills gap pose a major challenge to the industry.
The Company recognizes that its success is deeply embedded in the success of its human capital. During 2017-2018, the Company continued to strengthen its HR processes in line with its objective of creating an inspired workforce. The employee engagement initiatives included placing greater emphasis on learning and development, launching leadership development programme, introducing internal communication, providing opportunities to staff to seek inspirational roles through internal job postings, streamlining the Performance Management System, making the compensation structure more competitive and streamlining the performance-link rewards and incentives.
CORPORATE SUSTAINABILITY AND SOCIAL RESPONSIBILITY
The provision of the Section 135 and Schedule VII of the Companies Act, 2013 as well as the provisions of the Companies (Corporate Social Responsibility Policy) Rules, 2014 effective from April 1, 2014 relating to CSR Initiatives are not applicable to the Company.
The Compliance function of the Company is responsible for independently ensuring that operating and business units comply with regulatory and internal guidelines. The Compliance Department of the Company is continued to play a pivotal role in ensuring implementation of compliance functions in accordance with the directives issued by regulators, the Companys Board of Directors and the Companys Compliance Policy. The Audit Committee of the Board reviews the performance of the Compliance Department and the status of compliance with regulatory/internal guidelines on a periodic basis.
The Company has complied with all requirements of regulatory authorities. No penalties/strictures were imposed on the Company by stock exchanges or SEBI or any statutory authority on any matter related to capital market during the last three years.
|By order of the Board|
|Mumbai, May 30, 2018||For TUNI TEXTILE MILLS LIMITED|
|Registered Office :||Narendra Kumar Sureka|
|63/71, Dadiseth Agiary Lane||DIN : 01963265|
|3rd Floor, Kalbadevi Road, Mumbai-400002.||Managing Director|