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Global economy

Overview: The global economic growth was estimated at a slower 3.2% in 2022, compared to 6% in 2021 (which was on a smaller base of 2020 on account of the pandemic effect). The relatively slow global growth of 2022 was marked by the Russian invasion of Ukraine, unprecedented inflation, pandemic-induced slowdown in China, higher interest rates, global liquidity squeeze and quantitative tightening by the US Federal Reserve.

The challenges of 2022 translated into moderated spending, disrupted trade and increased energy costs. Global inflation was 8.7% in 2022, among the highest in decades. The result is that the world ended in 2022 concerned that the following year would be slower.

Gross FDI inflows equity, reinvested earnings and other capital declined 8.4% to $55.3 billion in April-December 2022. The decline was even sharper in the case of FDI inflows as equity: these fell 15% to $36.75 billion between April and December 2022. Global trade expanded by 2.7% in 2022 (expected to slow to 1.7% in 2023).

Regional growth (%) 2022 2021
World output 3.2 6.1
Advanced economies 2.5 5.0
Emerging and developing economies 3.8 6.3

[Source: PWC report, EY report, IMF data, OECD data]


The global economy is expected to grow 2.8% in 2023, influenced by the ongoing Russia-Ukraine conflict Concurrently, global inflation is projected to fall marginally to 7%. Despite these challenges, there are positive elements within the global economic landscape. The largest economies like China, the US, the European Union, India, Japan, the UK and South Korea are not in a recession. Approximately 70% of the global economy demonstrates resilience, with no major financial distress observed in large emerging economies. (Source: IMF).

Indian economy

Overview: Even as the global conflict remained geographically distant from India, ripples comprised increased oil import bills, inflation, cautious government and a sluggish equity market. Indias economic growth was 7.2% in FY 2022-23.

India emerged as the second fastest-growing G20 economy in FY 2022-23. India overtook the UK to become the fifth largest global economy. India surpassed China to become the worlds most populous nation (Source: IMF, World Bank)

Growth of the Indian economy

FY 20 FY 21 FY 22 FY23
Real GDP growth(%) 3.7 -6.6% 9.1 7.2

(Source: Budget FY24; Economy Projections, RBI projections)

As Indias domestic demand remained steady amidst a global slowdown, import growth in FY23 was estimated at 16.5% to $714 billion as against $613 billion in FY22. Indias merchandise exports were up 6% to $447 billion. Indias total exports (merchandise and services) grew 14 percent to a record of $775 billion and is expected to touch $900 billion in FY 2023-24. The countrys retail inflation, measured by the consumer price index (CPI), eased to 5.66% in March 2023. Inflation data on the Wholesale Price Index, WPI (calculates the overall price of goods before retail) eased to 1.3% during the period.

Indias total industrial output for FY23, as measured by the Index of Industrial Production or IIP, grew 5.1% year-on-year as against a growth of 11.4 percent in FY 2021-22. India moved up in the Ease of Doing Business (EoDB) rankings from 100th in 2017 to 63rd in FY23. As of March 2023, Indias unemployment rate was 7.8 percent.

Per capita income almost doubled in nine years to H172,000 during the year under review, a rise of 15.8 percent over the previous year. Indias GDP per capita was 2,320 USD (March 2023), close to the magic figure of $2500 when consumption spikes across countries. Despite headline inflation, private consumption in India witnessed continued momentum and was estimated to have grown 7.3 percent in 2022-23.


There are green shoots of economic revival, marked by an increase in rural growth during the last quarter and an appreciable decline in consumer price index inflation to less than 5 percent in April 2023. India is expected to grow around 6-6.5 percent (as per various sources) in FY2024, catalysed in no small measure by the governments 35% capital expenditure.

The global landscape favours India: Europe is moving towards a probable recession, the US economy is slowing, Chinas GDP growth forecast of 4.4% is less than Indias GDP growth of 7.2% and America and Europe is experiencing its highest inflation in 40 years.

Indias production-linked incentive appears to catalyse the downstream sectors. Inflation is steady. India is at the cusp of making significant investments in various sectors and emerging as a suitable industrial supplement to China. India is poised to outpace Germany and Japan and emerge as the third-largest economy by the end of the decade. The outlook for private business investment remains positive despite an increase in interest rates. India is less exposed to Chinese economic weakness, with much less direct trade with China than many Asian peers.

(Source: IMF data, RBI data, Union budget 2023-24 data, CRISIL report, Ministry of Trade & Commerce, NSO data)

Apparel market overview

The apparel market is the largest non-food consumer goods category globally, encompassing a diverse range of clothing options. It is a dynamic and rapidly evolving industry characterized by short product life cycles, which have been further reduced with the emergence of fast fashion retailers.

This market includes various segments such as sportswear, business wear, value clothing and luxury pieces, catering to different consumer preferences and needs. From activewear for fitness enthusiasts to professional attire for the corporate world, the apparel market offers a wide variety of choices to customers.

Global apparel market overview

The global apparel industry faced new challenges in 2022 due to high inflation. This led to an increase in production costs and a decrease in consumer confidence. In 2022, the revenue of the global apparel market slightly declined compared to the previous year, amounting to approximately USD 1.53 trillion. However, the revenue is projected to rebound and surpass USD 1.7 trillion in 2023.

The regions that account for the majority of this apparel demand are the United States and the Asia-Pacific region (APAC), both generating substantially higher revenues than any other region. The APAC region plays a significant role in international trade. In 2022, the APAC region led the rankings for the highest value of apparel exports. The United States was second only to the European Union (EU) in the value of apparel imports.

Revenue generated from womens apparel is significantly higher than that of mens and childrens apparel. In 2023, the global apparel market for women is projected to achieve a revenue of US$901.10 billion, representing growth from US$887.2 billion in 2022. The market is anticipated to demonstrate an annual compounded growth rate (CAGR) of 2.89% during the period of 2023-2027. If considered on a per capita basis, revenues for womens apparel on a global scale are expected to reach US$117.30 in 2023. In terms of volume, by 2027, the womens apparel segment is estimated to reach 79.62 billion pieces, with a growth rate of 1.5% in 2024. On average, each individual is projected to own 9.82 pieces within the womens apparel segment in 2023.

(Source: Statista)

Indian apparel market overview

The domestic textile and apparel industry in India holds significant importance, contributing nearly 2.3% to the countrys GDP. It also accounts for 14% of industrial production, 27% of foreign exchange inflows and 13% of export earnings. In FY 2022-23, the Indian apparel market experienced a 15% expansion, while sales growth has breached pre-Covid levels, the segment is expected to witness a significant demand recovery only by the second half of FY24.

As of 2023, the revenue generated in the Indian apparel market reached a value of US$96.47 billion and is projected to reach US$135 billion by 2025. The largest segment in this market is womens apparel, with a market revenue of US$43.65 billion in 2023. On average, per capita revenue in this sector stood at US$67.95 in 2023.

During FY 2023, the sales growth in the apparel market was predominantly propelled by price increases, as there was a 3% decline in the volume of products purchased by consumers. However the apparel market is projected to observe a substantial volume growth, reaching approximately 38.93 billion pieces by 2027, exhibiting a volume growth rate of 3.8%. On average, individuals have purchased an estimated 23.80 pieces per person in the apparel market in 2023. (Source: IBEF, Statista)

Market Segment of Indian apparel industry FY23

Womens bottom wear market in India

The womens bottom wear business is expected to grow from H13,500 crore in FY20 to H24,300 crore by FY25, representing a 35% increase. This growth is fuelled by increasing fashion awareness and higher disposable income. The market is divided into four price categories: super-premium, premium, mid and economy, with the mid and economy segments dominating with an 82% market share. Value brands and private labels are gaining popularity, driven by the demand for quality and affordability. Urban areas and Tier I cities are key markets for premium trousers, while Tier II cities and smaller towns cater to mid-range and value-for-money products.

The formal womens bottom wear segment is experiencing significant growth due to the rising number of women the corporate world and their economic independence.

Urban working women embrace concepts like ‘boardroom dressing and ‘business dressing, driving the demand for formal bottom wear. Additionally, there is a shift towards a preference for contrasting tops and bottom wear over traditional suit sets, highlighting the importance of well-designed standalone products. (Source: Technopak)

Indian retail apparel market

The Indian retail industry is projected to maintain a steady growth rate of 9% CAGR till 2030, driven by increased discretionary spending and the normalization of store operations post-pandemic. Indias fashion and apparel retail sector is expected to contribute significantly, accounting for 45% of this growth. By the end of the decade, the industrys market value is estimated to exceed $2 trillion. Notably, FMCG, apparel & footwear and consumer electronics dominate the retail segments, representing 65%, 10% and 9% respectively. The fashion and apparel industry has played a crucial role in the growth of the physical retail segment in India. Fashion and apparel retailers have been actively expanding their operations, contributing to over 42% of the total leasing activity. Additionally, categories such as food and beverage hold a significant share of around 12%, while other hypermarket segments contribute approximately 7% to the overall leasing activity. (Source: CBRE report)

Indias physical retail market share

The online retail sector in the country experienced a remarkable growth of 22% year-on-year, achieving a gross merchandise value (GMV) of $60 billion in FY23. Over the course of the year, the Indian user base displayed maturity, as 31% of annual shoppers transitioned into monthly shoppers, an increase from 23% in FY22. These mature shoppers, predominantly from select urban areas, Tier II and Tier III markets, have played a significant role in propelling the growth of e-commerce. Among all segments, fashion, including apparel, emerged as the largest category in the e-commerce space in FY23, capturing a 27% market share. This growth was primarily driven by the increasing participation of women shoppers.

The rise of direct-to-consumer (D2C) brands has been instrumental in the success of online retail. This trend has encouraged traditional players to adopt digital strategies to stay competitive. Additionally, several online retailers have formed strategic partnerships and collaborations with both global and Indian fashion brands. These alliances have not only increased their visibility but also expanded their product offerings, contributing to their overall success in the market.

Online and D2C retail market FY23

Factors driving growth in the womans apparel market

Rapid urbanisation: The projected growth of Indias urban population from 35.39% in 2021 to 43.2% by 2035 will act as a significant driver for the countrys womens apparel market. urbanisation brings higher disposable incomes, fashion awareness and access to online shopping platforms, boosting demand for fashionable clothing. (Source: UN report)

Cost advantage in textile and apparel manufacturing:

India holds the position of the largest producer of jute and cotton, and the second-largest producer of silk. The country benefits from high availability of raw materials, combined with cost-effective labour, resulting in significantly manufacturing costs for textiles and apparel compared to many competing nations.

Woman workforce empowerment:

Labour Force

Participation Rate (LFPR) for women aged 15 years and above in India exhibited an upward trend, reaching 30.0%, 32.5%, and 32.8% during 2019-20, 2020-21 and 2021-22, respectively. This rise in LFPR signifies a growing number of women in the workforce. With increased financial independence and a need for office attire, working have witnessed a surge in their clothing demands. Millennial women, in particular, enjoy greater financial autonomy and decision-making power, leading to an increased share of expenditure in the womens apparel market. (Source: PIB)

Demographic advantages: The young population (median age 28.1) with a 50% workforce share drives consumerism and retail transformation in India. The aspirational mindset of the youth, inclined towards branded products and improved shopping experiences, fuels demand across various segments and price points, echoing western consumption patterns.

Transition to aspirational purchases: The market has witnessed a shift from need-based buying to aspirational purchasing, particularly in the apparel segment. As women attain greater financial independence and start earning at younger age, there is a significant rise in aspirational buying Women view buying clothing items as a symbol of financial accomplishment, driving the demand for womens apparel.

Increasing fashion consciousness: With the rise of social media and fashion influencers, there has been a surge fashion consciousness among women. They are more aware of the latest trends, styles and brands, leading to an increased demand for a variety of fashionable clothing options.

Omnichannel approach: Utilizing omnichannel strategies and platforms like physical stores and e-commerce. Brands are now deepening engagement, providing easy access to clothing information and engaging content on e-commerce and online shops. E-retail in India has witnessed rapid growth and is expected to grow at a compound annual growth rate (CAGR) of 27 percent to reach US$163 billion by 2026. (Source: Redseer report)

An influx of new technologies:AI-based platforms and technology are propelling growth in the fashion industry, empowering women consumers to discover their style, mix and match outfits and make informed decisions. The integration of virtual fashion and physical clothing reduces costs and enhances offerings for retailers. Influencers leveraging virtual try-on capabilities amplify brand visibility, especially in segments like womens office wear. This convergence of technology and fashion is revolutionizing the industry and driving expansion in India.

Sustainable fashion: The rise of sustainability in fashion is driving growth in the industry. With a shift away from fast fashions throwaway culture, sustainable fashion embraces slow production and organic practices. Brands adopting natural fibers like hemp and jute create durable products that minimize resource consumption and biodegrade responsibly. This approach not only benefits the environment but also supports traditional communities, presenting opportunities for economic growth in India.

SWOT analysis


The womens apparel market in India is witnessing strong and sustained demand driven by factors such as rising disposable income, changing fashion preferences, and increasing urbanization.

India has a diverse and rich cultural heritage, resulting in a wide variety of traditional and ethnic clothing options. This provides a unique selling proposition and a competitive advantage in the global market.

India has a skilled workforce with expertise in designing and manufacturing of womens apparel, enabling the production of high-quality products at competitive prices.

The rapid growth of e-commerce and online shopping platforms has provided a convenient and accessible channel for women to purchase apparel, expanding market reach and creating new opportunities for retailers.


Indian consumers are highly price-sensitive, which puts pressure on apparel brands to offer affordable products without compromising on quality or design.

Limited infrastructure and logistical challenges in certain regions can impact the distribution and supply chain efficiency, leading to delays and higher costs.


The expanding middle-class population in India, coupled with increasing purchasing power, presents a significant opportunity for the womens apparel market to tap into a larger consumer base.

There is a growing trend of fashion consciousness among Indian women, leading to a higher demand for trendy and fashionable apparel. Brands that can offer innovative designs and stay ahead of fashion trends have a competitive advantage.


The womens apparel market in India is highly competitive, with both domestic and international brands vying for market share. The presence of established players and new entrants intensifies competition, making challenging for brands to differentiate themselves.

The prevalence of counterfeit products in the market poses a threat to the reputation and sales of genuine womens apparel brands. Consumers may opt for cheaper counterfeit alternatives, impacting the sales and brand image of legitimate brands.

Changes in economic conditions and consumer spending patterns can impact the demand for womens apparel, making the market vulnerable to economic downturns and fluctuations.

Government initiatives

Production Linked Incentive (PLI) Scheme: The Production Linked Incentive (PLI) Scheme aims to boost the production of MMF apparel, MMF fabrics and technical textile products in India, attracting significant investment of around H19,000 crores and creating approximately 7.5 lakh new job opportunities. The scheme also intends to establish 60-70 global players in the industry.

National Technical Textile Mission: The National Technical Textiles Mission, with a budget of H1480 crore, has been established for a duration of four years (2020-21 to 2023-24). Its objective is to promote the utilization of technical textiles in key national programs, flagship missions, and strategic sectors.

PM-MITRA: To enhance investment for the ‘Make in India initiative and drive employment generation, the government plans to establish seven PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks. These parks, with top-notch infrastructure and plug-and-play facilities, will be developed on greenfield and brownfield sites. The initiative has budget of H4445 crore and will span a period of seven years, up to 2027-28.

Scheme for capacity building in textile sector (SAMARTH):

The scheme was designed to cater to the skilled manpower needs of the textile sector, aligning with the "Skill India" initiative and following the framework established by the Ministry of Skill Development and Entrepreneurship. It has been approved for implementation until March 2024. (Source: pib.gov.in)

Budgetary allocation for 2023-24

The budget allocation for the textiles sector in 2023-24 is H4,389.34 crore, demonstrating an increase compared to the revised estimate of 2022-23, which amounted to H3,579.61 crore.

The government has raised the budget allocation for the Amended Technology Upgradation Fund (ATUF) from H650 crores in the Revised Estimate of 2022-23 to H900 crores in the Budget Estimate of 2023-24. The outlay for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has been increased from H13,699 crore in 2022-23 to H15,069 crore in 2023-24.

The allocation for the Rebate of State and Central Taxes and Levies (RoSCTL) scheme has been increased from H7,641 crore for 2022-23 to H8,405 crore for 2023-24.

Indias textile sector received emphasis, particularly on Extra-Long Staple (ELS) cotton and the introduction of five new HS codes is expected to strengthen government policy measures. (Source: PIB India)

Company overview

Go Fashion (India) Limited (GFIL), is a prominent player in the Indian womens bottom-wear market, holding an approximate as 8% as on FY20 market share in branded womens bottom-wear. We specialize in the development, design, sourcing, marketing and retailing of womens bottom-wear products under the well-known brand, ‘Go Colors. As a industry pioneers, we identified the untapped potential in the womens bottom-wear category and successfully established ourselves as category creators. With a direct-to-consumer approach, we offer a diverse and premium product portfolio, delivering high-quality bottom-wear at competitive prices. Our commitment to innovation and customer satisfaction has positioned us as a trusted and preferred choice in the market.

Key ratios

Particulars FY 23 FY 22
Debt-equity ratio 0.65 0.57
Debtors turnover (days) 40 55
Inventory turnover (days) 126 151
Debtors turnover 10.05 7.48
Inventory turnover 3.36 3.25
Interest coverage ratio (x) 7.46 5.10
Current ratio (x) 3.57 3.15
Gross Margin (%) 60.7 60.1
EBITDA margin (%) 31.9 30.5
Net profit margin (%) 12.4 8.9


Our company follows the COCO (Company Owned Company Operated) model for better operational control. Our strategic outlook includes expanding our Exclusive Brand Outlet (EBO) network in Tier II and Tier III cities, deepening market penetration in the South and West regions, and expanding our presence in the North and East regions. We will selectively expand in Large Format Stores (LFS) across India.

With a target of adding 120-130 EBOs annually, we expect more than 80% of our revenues to come from EBOs in the coming years. This will reduce working capital requirements and generate increased cash flow. Our investment strategy ensures a healthy financial position and we aim for sustained profitability and better return ratios. We are not expecting raise external funding for our growth projections in the near future. Overall, our company outlook is focused on strategic expansion, operational control, revenue generation through EBOs, and sustainable profitability.

Risk management

Our Risk Management Committee is dedicated to promptly identify and mitigate risks. We acknowledge that risk is an inherent and inevitable part of business, and we are committed to proactively managing risks

Raw material risk: Volatile raw material costs could affect the business.

Mitigation: Addressing resource volatility by passing cost increases to customers. Raw material cost as a percentage of revenues: 33.30% in FY 2022-23 (33.76% in FY 2021-22).

Competition risk: The emergence of new competitors could affect profitability.

Mitigation: Possesses extensive scale (3000+ SKUs), innovative products, strong brand recall, and operational efficiency.

Trend risk: The inability to address consumer preferences could affect the business.

Mitigation: Exclusively engaged in an extensive range of bottom wear products and investing in product development and innovation.

Quality risk: Inadequate product range, quality and poor manufacturing efficiency could impact the business.

Mitigation: Prioritizing partnerships with suppliers offering best-in-class raw materials, maintaining a strong quality control team and ensuring an extensive distribution network for superior product quality.

Customer attrition risk: Losing customers could affect revenues and profits.

Mitigation: Maintaining a diverse product portfolio, catering to various categories and body types and offering over styles of bottom wear in more than 120 colors.

Supply chain risk: Disruptions in the supply chain, such as delays in receiving raw materials or finished products, could impact production and inventory management.

Mitigation: The Company implements robust supply chain management practices, maintains alternative sourcing options, and establishes strong relationships with reliable suppliers to minimize supply chain risks.

Economic risk: Economic downturns or fluctuations in consumer spending could lead to reduced demand for apparel products.

Mitigation: The Company conducts market research and analysis to understand consumer trends and preferences, diversifies its product offerings and implements pricing strategies that cater to various economic scenarios.

Operational risk: Inefficiencies in operations, including inefficient inventory management, inadequate staffing, operational errors, may impact productivity and customer satisfaction.

Mitigation: The Company implements effective inventory management systems, invests in employee training and development and establishes stringent quality control measures to enhance operational efficiency and minimize errors.

Internal control systems and adequacy

Our Company places a strong emphasis on maintaining effective internal control systems and ensures compliance with established regulations. We have established a robust internal audit system that undergoes continuous monitoring and updates to safeguard our assets and address any pending issues promptly. The reports provided by our internal auditors are regularly reviewed by our audit committee, which takes note of any audit observations and implements necessary corrective actions. The committee maintains an open dialogue with both statutory and internal auditors to ensure the efficient operation of our internal control systems

Human resources

The Companys strong HR practices play a vital role in its success and prosperity, reinforcing its leadership position.

As of March 31, 2023, the Company had a workforce of 4,318 employees. We prioritize investment in comprehensive training programs, both formal and informal, as well as on-the-job learning initiatives. Our commitment to employee engagement is evident through our enriched workplace environment, stimulating job profiles and ongoing dialogue at all levels

Cautionary statement

This statement made in this section describes the Companys objectives, projections, expectations and estimations which may be ‘forward-looking statements within the meaning of applicable securities laws and regulations. Forward–looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual results could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent development, information or events.