Textile Sector Analysis

30th June, 2024

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MSME Listed Company: Indian Acrylics Limited

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Fabric

List of Textile Stocks:

Cotton Spinning Companies list: Garment Manufacturers or Integrated Companies Ready made or made ups companies (bedsheet, pillow cover, curtains, towel) Man Made Fiber / Technical Fiber Revenue prediction and Price Targets of major players by These 3 stocks have crossed their ALL TIME HIGH on Charts!
https://www.moneycontrol.com/stocks/market
info/marketcap/bse/textiles-​apparel.html
Raymond Ltd
Revenue Revenue Revenue revenue Pearl Global Industries Ltd
Arvind Ltd
Mafatlal Industries Ltd

Positive Tailwinds: Not a single reason, How to Analyse Textile Industry! 1. KPR Mills
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2. Nitin Spinners 3. Vardhman Textiles 4. Indo Count Industries 5. Himatsingka Seide Ltd 6. Trident Ltd 7. Welspun Living Ltd 8. Alok Industries 9. Arvind Limited 10. PDS Ltd 11. Gokaldas Export Ltd 12. Kewal Kiran Clothing Ltd 13. Dollar Industries Ltd 14. Raymond Ltd
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Gross Margins
but many! About Company:
Gross Margins Gross Margins Gross Margins
About Company: About Company: About Company: About Company: About Company: About Company: About Company: About Company: About Company: About Company: About Company: About Company: About Company:
K.P.R. Mill is engaged in one of the largest vertically
1. India-​UK Free Trade Agreement (FTA) Nitin Spinners is engaged in the business of Yarn and Vardhman textiles is engaged in the business of Indo Count Industries Limited (ICIL) is engaged in the Himatsingka Seide Ltd. is a vertically integrated global Incorporated in 1990, Trident Ltd manufactures, trades, and Welspun Living Limited, part of the US$ 2.7 billion Welspun Group, Alok Industries is a textile company with a presence in the Arvind Limited (‘the Company’) is one of India’s PDS Ltd is engaged in trading of garments, investment holding, Gokaldas Exports Limited is engaged in the business of design, Kewal Kiran Clothing Limited was incorporated in 1992. The Dollar Industries Limited is engaged in manufacture and sale of Raymond Limited incorporated in 1925 is a diversified group with
integrated apparel manufacturing Companies in
Cotton Knitted Fabric. manufacturing Yarn, Fabric, Acrylic Fiber and home textiles & bedding industry. The company is a textile major that designs, develops, manufactures and sells Yarn, Terry Towels & Bed sheets, and Paper & is one of the largest home textile manufacturers in the world. The cotton and polyester segments. The Company is engaged in leading vertically integrated textile company with the design, development, marketing, sourcing and distribution of manufacture, and sale of a wide range of garments for men, Company is engaged in manufacturing, marketing and retailing of hosiery products in knitted inner wears, casual wears and thermal interests in Textile & Apparel sectors as well as presence across
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The India-​UK Free Trade Agreement (FTA) is a proposed agreement

EBITDA Margins
currently under negotiation. Negotiations began in January 2022. The India. The Company produces Yarn, Knitted Fabric,
EBITDA Margins EBITDA Margins EBITDA Margins
goal is to boost trade between the two countries. 🚀🚀🚀 Readymade Garments and Wind power
Garments, the Group has over the years developed manufacturer and exporter of bed sheets, bed linen distributes a suite of home textile products. It has installed Chemicals. Company offers a wide spectrum of Home & Technical textile manufacturing of textile, including mending and packing presence of almost eight decades in this industry. It readymade garments of all kinds and other consumer products women, and children and caters to the needs of several leading branded readymade garments and finished accessories. The wears diverse segments such as Real Estate, FMCG, Engineering in
Product portfolio: as a business conglomerate with a presence in India and quilts. It is the largest global bed linen player. capacities for manufacturing bedding and bath products, products and Flooring solutions. activities; leather and other apparel products. is among the largest denim manufacturers in the worldwide. international fashion brands and retailers company has consumers in Asia, Middle East and CIS national and international markets 55+ Countries including the USA,
How Textile industry can get the benefit? 💰💰 Product portfolio:
Yarn - 100% cotton and blended yarns used for and in 75 countries across the globe. drapery and upholstery fabrics, and fine-​count cotton yarn Product portfolio: world. It also manufactures a range of cotton (Commonwealth of Independent States). Its registered office is in Products Europe, Japan & Middle East. The Company has a retail network of
1) Reduced tariffs: Textiles are one of India's strong exports, and an FTA manufacturing denims, bed linen, tea bags, terry Product portfolio: which are among the largest in the world. Product Profile The Company has established itself as a thought leader within the Business Divisions shirting, denim, knits and bottom weights (Khakis) Business Segments Product portfolio: Mumbai. The Co has a diverse portfolio of products under brands, catering to 1,638 stores, including 1,589 stores in about 600 towns and cities in
As raw material for cotton spinning companies is cotton, so its could significantly reduce or eliminate import duties on textiles entering The company produces a wide range of products
Companies with highest exposure to Garment revenue: Important points: Capacity problem: towel etc. Market Position: The comprehensive product portfolio in the a) Yarn: home textile industry over the years and continue to focus on the 1) Polyester (61%): The co. is fully integrated starting from fabrics and Jeans and Shirts Garments. 1 Design-​led Sourcing - Broaden design portfolio, introduce new The Company deals in a broad range of apparel products that the requirements of men, women, and children such as Vests, Leg India and 49 overseas stores in nine countries. It is one of the
profitability depends on prices of cotton in the market. the UK market.
such as yarn, fabric, garments, sugar, molasses &
Knitted Fabric - Single Jersey with elastane. Used for The group is among the top three woven fabric premium segment comprises bed sheets, fashion Company produces home textiles for over 12 global brands, 100% cotton combed yarn, Slub yarn, Open-​End yarn, enablers viz. Innovation, Branding and Sustainability to consolidate the continuous polymerization plant to the production of concepts and trends, & source products across the value chain, include outerwear, activewear, and fashion wear for all weather and Brand Portfolio wear, T-​shirts, Briefs, Casual wear, Bermudas Trunks, Panties, Socks, largest vertically and horizontally integrated manufacturers of
This would make Indian textiles more competitive and potentially lead to
ethanol. The company also has a presence in the
increased exports.
manufacturing innerwear, sports wear, babywear, manufacturers in India. bedding, utility bedding, and institutional bedding. It licensed and owned. It owns exclusive license rights of Blended yarn, etc. its leadership position. chips, POY, FDY, DTY, and PSF. Leading Denim Manufacturer enabling fast fashion. Clients include Primark, Tesco, Walmart, Kohls seasons Killer - Flagship Brand catering to Premium Luxury segment Tank tops, Crewnecks, Polos Henley, Capri, Track pants, Joggers, and worsted suiting fabric in the world.
automobile industry & power generation industry
winterwear etc. is the Largest Global Home Textile Bed Linen global iconic brands like Calvin Klein, Tommy Hilfiger, Kate b) Home Textiles: 2) Apparel Fabric (18%): Includes woven fabric, knitted Arvind is a leading manufacturer of denim and etc. Easies - Premium Mid Market Segment Brand much more.
Current Import duties on Textiles: through its subsidiaries.
Finished Woven Fabric - Cotton Spandex Fabrics. Product portfolio: Company Spade, Royal Velvet, Barbara Berry and Waverly. It includes Bath and Bed linen. Some of the products are It manufactures a wide range of home textile products ranging from fabric, garments, and safety textiles. woven fabrics, with capacities of 100 million meters 2 Sourcing as a Service - Exclusive & independent setup catering to Product Sales Lawman Pg3 - Fashion/Partywear Brand Focused on Mid Market Business Segments post demerger
Gokaldas Exports

Majority of textile products: 12% import duty. This applies to a large

portion of fashion items.
https://www.grasim.com/about-​us/our-​businesses/viscose-​staple-​fibre

Used for manufacturing fashion wear, defence wear, Yarn: Specialty Yarns, Dyed Yarns, Acrylic, Fancy & Comforters, Solid Printed Sheets, Decorative pillows, etc. towels, bath robes to sheets, tob and basic& fashion bedding. It also 3) Home Textiles (12%): Sells bedding and terry towels. per annum (MMPA) and 150 MMPA, respectively, as a specific Fashionwear:46% Segment The company will be a Real Estate company along with investments
Some yarns and fabrics: Attract a duty between 4% and 8%. Hope you liked the Webinar ✨🤩 healthcare wear etc. Hand Knitting Yarns. It also entered into a licensing agreement with The Walt c) Paper: entered into the business of carpets flooring solutions recently. 4) Cotton Yarn (9%): Produces cotton and cotton blended of March 31, 2023. The company also produces retailer & brand, acting as their sourcing arm in Outerwear: 36% Integriti - Targeted Premium Mass Market Brand in:
To attend more such sessions in future and learn stock market, join our WhatsApp Fabrics: Engaged in the production of fabrics for both Disney company to manufacture and distribute a broad This includes Branded copiers, Maplitho paper, Bible and fabrics in various counts on a wide range of finishes. cotton shirting, knits, Khakis, and technical textiles. specified territories. Clients include Hanes, Sainsbury, George, Bottom wear: 9% Desi Belle - Focused Women Wear Brand ▪ Engineering
Important Commentary:
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As the end product of Cotton Spinning companies is yarn, so
2) Easier market access: FTAs often streamline customs procedures and tops and bottoms in the apparel segment catering to range of home textile products inspired by archives and offset printing paper Product portfolio: s.Oliver etc. Sportswear: 9% Junior Killer - Focused Kids wear Brand ▪ Denim (JV Co)
its revenue also depends on price of yarn in market Join our WhatsApp Community
regulations, making it easier and faster for Indian textile exporters to get
their products into the UK.
a large number of retailers in the USA, Europe, and characters from all its franchisee including Disney, Marvel, d) Chemicals: Product Profile Product Portfolio Business Segments 3 Manufacturing - Direct manufacturer with 3 specialty-​focused in-​ They will retain their flagship brand Raymond.
Asia amongst others. Pixar and Lucas to increase its presence in the European North India’s largest commercial and battery-​grade sulphuric Bed Linen - Bedsheets, Comforters, Dohars, Pillow Covers a) Accessories – Shopping Bags, Handkherif Textiles Business (84% of revenues) house capabilities in strategic locations. Clients include Primark, Geographical Split
Challenges:
region. acid manufacturer Bath Linen - Towels, Bath Mats, Bath Robes b)Apparel Fabrics – Woven Fabrics & Knitted Fabrics Arvind has vertically integrated operations across the Matalan, Sainsbury's etc. North America: 85% Brands[1]
Caution:
Competition: The UK market may already have established textile
Classification of textile companies: Revenue Mix Rugs - Doormats, Yoga mats, Bedsiderunner, Grassmats. c)Corrugated Pallets textile value chain starting from manufacturing of 4 Brand Management - Leveraging capabilities to revitalize brands, Europe: 3% The company has famous and established brands like Raymonds,
suppliers from other countries that have FTAs with the UK. India would Yarn- 64% Product portfolio: Flooring Solutions Click & Lock Tiles, Carpet Tiles, W 2 W carpets d)Cotton and Blended yarn cotton yarn to grey/processed fabric to garments, via brand management & wholesale distribution of licensed brands. Asia: 11% the address, Ten Habitat, Super Drive, Ten era etc.
need to be competitive in terms of price and quality. 1. Fibre Growers/Manufacturers:
Fabric- 32% Himatsingka is a vertically integrated global textile major Greens. e)Embroidery which imparts strong operational flexibility. Its Clients include Ted Baker, Forever 21, Lily & Sid etc. ROW: <1% Branded Textile
Non-​tariff barriers: Even with reduced tariffs, non-​tariff barriers like
Purified terephthalic acid (PTA)
Monoethylene Glycol (MEG) stricter quality standards or environmental regulations could still pose Man-​
Manufacturing Capacities Acrylic Fibre- 2% New Products that designs, develops, manufactures and distributes textile Curtains & Upholstery - Cushion Cover, Curtains, Blinds, f)Woven & Knitted Garments portfolio includes Denims, Wovens, and Garments. 5 PDS Ventures - Investments in innovative solutions in apparel, Company exports to 50+ countries. The branded Textile segment, which is its flagship business, has
Natural
challenges for Indian textile exporters.
Fibre
made
Fibre Their manufacturing facilities are located at Bhilwara Others- 2%. Expanded market opportunity with a foray into products. With 4 manufacturing facilities,its installed Wallpaper. g)Home textiles – Bed Linen & Terry Towel sustainability & circularity from design to consumer. Clients include presence in the Indian market as a B2C branded player for suiting
Textile fibre is mainly divided into natural fibre and man-​made fibre.
& Chittorgarh, Rajasthan. newer products like Bed Sheets, Fashion Bedding, capacities for Bedding Products, Bath Products and Cotton h)Polyester – Polyester Texturised yarn, Partly oriented Textile Revenue Bifurcation - Style Theory, Kavida, Smartex etc. This includes 22% of treasury Manufacturing Facilities and shirting fabrics.
Overall, an India-​UK FTA has the potential to benefit the Indian textile
SP Apparels industry, but the extent of the benefits will depend on the specific details Natural fibre mainly consists of cotton; Diversified Customer Base Capacity Geographical Split Utility Bedding, Institutional Bedding, and a few Yarn Products are amongst the largest in the world. yarn, Fully Drawn yarn. Denim - 18.5% investments and 18% investment in real estate. The Company has 20+ production units having 15,000+operational In FY20, volumes were impacted in the wholesale channel, but The
of the agreement which we will come to know later.
Other natural fibres like hemp fibre, stinging nestled fibre, coffee ground fibre, The company has a strong customer base with 1 Yarn – 1,10,000 Tons Domestic - ~52% more products under this. i)Technical Textile/ Home wear products Woven Fabrics - 46% machines and employs 26,000+ people with an annual capacity to Raymond Store (TRS) channel witnessed growth driven by channel
2 Knitted - Fabric 11,000 Tons
pineapple fabric piñatex, banana fibre, lotus fibre etc.
~1,300 regular domestic clients for yarn and fabric Exports- ~49% Leadership in Manufacturing Garments - 27% manufacture 36 mn pieces of garments Annual Apparel expansion and higher sales of combo packs.
Positive Triggers:
Product Portfolio
But cotton is the most widely used natural fibre in the world.
But premium of yarn over cotton is improving!
2. PLI Scheme and ~60 leading international brands for apparel. 3 Finished - Woven Fabric 40 Mn Mtr Value-​added Segment 1. operates the world’s largest Cotton Spinning Plant under Manufacturing Facilities Others - 8.5% Manufacturing Capacity. In FY23, company commissioned 1 new They have 20,000+ points of sale across 600+ cities. [2] The
4 Spindles - 434,832 Client base In FY24, company plans to expand its value-​added one roof: Capacity — 211,584 Spindles The company has 10 manufacturing plants at Dadra and manufacturing unit at its Madhya Pradesh facility, spanning across The Co.’s offerings include jeans, shirts, T-​shirts, women’s wear, company opened 150+ new stores with 12 mn + new loyalty
Subsidiaries 5 Rotors - 5,864 The company caters to some big international products segment. For this company has invested in 2. operates amongst the world’s largest Integrated Sheeting Nagar Haveli (Silvassa), Gujarat, and Maharashtra. Advanced Materials Segment (12% of revenues) 1,00,000 sq. ft production area to accommodate 2,000 employees. trousers, winter wear and accessories. members
Manufacturing Capacity:
The company has a total of 7 WOS out of which 6 Airjet Weaving Machine - 264 brands like GAP, H&M, Walmart, Calvin Klein, Tommy a state-​of-​the art Top of the Bed (TOB) unit which Plants for producing Bedding Products: Capacity - 61 The company produces technical textiles with Revenue Mix
Company has 3 manufacturing facilities in Punjab and
Jahnvi Motor deals in sales of Audi cars in 7 Circular Knitting Machine - 77 Hilfiger, and so on. Vardhaman is present in 57 started operations in FY23. The company intends to MMPA. Geographical Split applications in human protection, filtration, conveyor Long-​Standing Relation with Clients Product-​Wise
Madhya Pradesh. These facilities collectively
Coimbatore and Madurai Region. countries. Top five customers accounting for only 9% market it domestically and internationally. The 3.operates amongst the world’s largest Integrated Plants Domestic Sales - 83% belting, automotive, and building and construction. The company has long-​standing relationships with its customers Jeans - 52%
Geography-​wise Revenue split held 589,248 spindles, 7,464 rotors, 320 Air Jet, 672 looms Manufacturing Facilities
of the total revenue. company intends to earn ~30% of revenue share for producing Drapery and Upholstery Fabrics: Capacity - 2 Exports - 17% It produces specialty apparel such as Fire Retardant, and suppliers with ~50% revenue contribution from >10+ yrs old Shirt - 21%
(terry towel) and 500 looms (bed sheet). Company has a Co. is vertically integrated across the entire value chain from
Manufacturing Facilities: from this segment. MMPA Work Wear, Abrasion Resistant suits, Low-​ clients, ~38% from 5+ yrs old clients and ~12% from <5 yrs old Trouser - 8%
paper manufacturing capacity of 1.75 Lac MTPA and a procuring cotton to dispatching end products to consumers, the Sourcing Segment (~97% revenue of FY24)
Manufacturing units and capacities 4.amongst the largest Brand Portfolios in the Home Textile Joint Acquisition by RIL & JMFARC temperature clothing, etc . clients. T-​shirt - 4%
chemical manufacturing capacity for sulphuric acid company has in-​house infrastructure. Its products include apparel, accessories, footwear, and home
Manmade fibre (MMF) is of two types: synthetic and cellulosic. The company has 15 manufacturing facilities with a Brand Portfolio space: 8+ Brands In 2019, NCLT approved the resolution plan, and Reliance Others - 15%
of 113,150 MTPA. products. It has a capacity of ~1 million pieces of garments per day Quarterly
total installed capacity of 1.16 million spindles, 1,550 Co. has 20+ Brands, each brand possessing distinct 5.global leaders in the Cotton Track and Trace Solutions and JM Financial Asset Reconstruction (JMFARC) acquired the AMD Revenue Bifuraction - Channel-​Wise
Welspun has top-​of-​the-​line home textile manufacturing facilities from its partners. It has 50+ offices in 22+ countries and 6000+
fabric looms, 180 million meters per annum of fabric attributes. Some existing brands are Sleep.RX. space: Patented DNA Technology for Cotton Traceability co. for Rs. 5000 Cr. RIL holds a 40.01% equity stake in AIL Human Protection - 53.5% Retail - 46%
KPR Mill Launched in September 2021, the PLI scheme for textiles aims to boost Synthetic Cellulose
Revenue Breakup - in Vapi and Anjar (Gujarat, India) and a flooring facility in partner factories. Global sourcing is done from countries like
domestic manufacturing and export capabilities. It's offering incentives processing capacity and 1.8 million pieces of Layers, Holistic, Kids Corner, Colour Sense, and a few whereas JMFARC – Trust holds a 34.99% equity stake. The Industrials - 21% Non-​retail - 54%
to companies that invest in specific segments of the textile industry. Sale of Manufactured goods viz. Textiles ~77%, Paper Telangana (India). These are one of the world's largest, Turkey, India, Bangladesh, Cambodia, Vietnam, China, Indonesia, Sri
garments manufacturing capacity spread over plants more, additional brands are Maximix, Hotelathome, Brands operations of the co. are managed and supervised by RIL Composite - 25.5% Avg. Sales Realisation : Rs. 649
~13%, Chemicals ~1%, Traded Sales of Textiles ~1%, Other completely vertically integrated lines in farm-​to-​finish production Lanka, Central Europe, Latin America
Target Sectors of PLI Scheme of 2021:
Synthetic fibres are primarily Cellulosic fibre is made from cellulose
located in Punjab, Madhya Pradesh, and Himachal Flip, etc. The company owns brands portfolio like Pimacott, through its three nominee directors appointed on the board
produced from petrochemicals (wood) and mainly constitutes viscose
operating revenue ~2%, Export incentives on manufactured across diverse products. Geographical Footprint
Man-​Made Fiber (MMF) Fabrics
and therefore are derivatives staple fibre (VSF).
Pradesh. Gizacott, HomeGrown Cotton and Organicott. The of AIL. Global Presence Geographical Revenue Breakup FY24
MMF Apparel
of crude oil.
goods ~6% Company has 483 EBOs pan India. ~28 EBOs are under Branded Apparels
Technical Textiles
Grasim Industries
company caters to 15+ brands globally. The company earns 49% of its revenues from India UK : 38%
Polyester staple fibre (PSF)
development. In this segment, co. has brands like Colour Plus, Parx, Park Avenue.
Acrylic staple fibre (ASF) and Agreement with RIL while the remaining 51% of revenues come from its Europe - 33% Yearly Category-​Wise Revenue
Eligibility and Incentives: Nylon staple fibre (NSF). Segmental Revenue - Break up of EBOs - During FY20, the Branded Apparel segment was impacted due to
Key Brands association The company has entered into an offtake agreement with RIL key export markets of the USA, UK, and the North America - 13%
Earlier scheme had two parts, each with minimum investment and Textiles ~86%, Paper & Chemicals ~14% Killer Brand EBOs : 294 stock correction in trade channels.
turnover requirements: The company supplies to major global brands like Calvin for eight years from Feb 2020, which is like ‘take-​or-​pay’. As European Union. Asia & Middle East - 14%
Among the manmade fibres, polyester forms the major (about 80%) portion.
K-​Lounge : 172 Co. is focusing on the asset-​light expansion of stores through the
Part 1: Klein, Tommy Hilfiger, Kate Spade, Himeya, Organiccott, per the agreement, RIL will ensure minimum guaranteed Others - 3%
Minimum investment of ₹300 crore (US$40 million) in plant, Geographical Split Other Brand EBOs : 16 franchisee model.
Bellora etc. The company is planning to enter the domestic offtake, primarily for the company’s polyester products on a Others (4% of revenues)
machinery, equipment, and civil works (excluding land and
India: 32% The company is focused on Europe, North America (USA & Canada), Factory Outlet : 1 It has Launched Ethnix in 2019. This brand is focusing on Ethnic and
administration).
market with its brand Himeya. It will enter the affordable cash-​and-​carry basis which will help the company manage its The company is also involved in the business of
Minimum turnover of ₹600 crore (US$80 million).
USA: 44% India & SEA and Brazil. traditional Clothes. Response for this is good as per the
and aspirational segment. working capital. Water treatment, agriculture produce, E-​commerce, Distribution Network
Man-​
Natural
+ made
Part 2: Fibre
Fibre Rest of World:24% Revenue Breakup FY24 management.
Minimum investment of ₹100 crore (US$13.3 million). EPABX, One to Many Radio, and other newly Co. relies on a multi-​channel sales and distribution network of:
Minimum turnover of ₹200 crore (US$26.7 million). Global Presence Sales from this segment have grown 60% from FY 2015.
Further, natural and manmade fibres are mixed (blended) in different proportions to Manufacturing Facilities Operational Synergies with RIL commenced businesses by the group. Men's Wear - 38% 1 EBOs - 483 (COCO/COFO : 29 , FOFO : 454)
ICIL exports to 50+ countries with the US being the Brands They have a Presence in 500+ cities & towns with 316 EBOs, 1053
Vardhman Textiles
Companies meeting these criteria can apply for the scheme and receive
give unique properties to the yarn and the cloth to be manufactured from it.
Himatsingka operates four integrated, global scale Reliance Industries Ltd has synergized its textile business Ladies Wear - 36% 2 Multi Brand Outlets (MBO) – 80+ Distributors covering ~3,000+
incentives based on incremental sales achieved over a specified period. largest market (~75% of the revenue) where TRS, 40 MTM as of FY23.
manufacturing plants across two campuses in Karnataka (polyester segment) with that of AIL. This helped RIL increase Manufacturing Facilities Kids Wear - 21% MBOs across India
company commands ~20%+ market share in bed Share Holding Pattern
Cotton constitutes about 70% of yarn while the remaining
sales of its petrochemical products such as PTA and MEG in Co. owns and operates 9 manufacturing facilities Others - 5% 3 LFS - Reliance Retail, Max, Lifestyle & Others ,2000+ counters
Current Status: comprises primarily manmade fibre. Reasons? sheets. In overseas markets, they have strong
Govt. Policies: Support to Farmers Geographical Revenue Split the domestic market. The textile products manufactured by located in Gujarat, Karnataka, and Maharashtra. It Client Profile across regions
and Higher Taxes on MMF. presence in Europe, Australia, etc. In India, company
This is in sharp contrast to global yarn production, in North America: 86% AIL are also being marketed through Reliance Retail’s undertook capacity expansion at its garmenting The company caters to 190+ fashion brands and retailers 4 E- Comm - Flipkart / Amazon
which manmade fibre comprises 65%. is present by the brands ‘Boutique Living’ and
India and Asia pacific: 4% Fashion and Lifestyle segment. division in Karnataka which increased the shipments worldwide. The company's client profile includes Supermarkets &
‘Layers’.
Europe, Middle East and Africa: 9.5% Share Holding Pattern of garments from 34 million pieces to 42 million Discounters, Department stores, Brand License, Specialty Retail, Fast Manufacturing Capabilities
Strong Presence in the USA and Europe
✨🤩 ✨🤩 Rest of the world: 0.5% pieces Fashion and D2C. KKCL has 4 manufacturing units located across 3 states with a total
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Almost 84% of the revenues come from the exports to US and
area of ~2.87 lakh sq. ft., it has 2 garment stitching units in Mumbai,
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European regions. USA accounts for around 67% of the company's
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Community ✨👇🏻🔗 Community ✨👇🏻🔗 Subsidiaries/JV MOU with Indian Navy Client Concentration - The company's clients are significantly a washing unit at Vapi (Gujarat), and a finishing and packaging
Cotton is an agricultural product, whose production depends on sales, followed by the European Union (17%), India (7%), and the
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numerous factors like minimum support price (MSP) by govt., the Quarterly Co. has received its first order from Indian Navy and concentrated with top 20 clients accounting for ~75% of total facility at Daman (Union Territory of Daman and Diu).
weather, demand-​supply in India as well as the international market etc. Clients Rest of the World (9%). It has immense market shares and is
Subsidiaries (WOS) has signed an MOU for supplying high performance revenues.
Cotton is mainly available in the market during its harvest season responsible for 19% supply in the USA Towels market and 11%
1 Himatsingka Wovens Private Limited specialty products. Subsidiary
(October-​March) every year.
supply in the US Sheets market.
2 Himatsingka Holdings NA Inc. Quarterly Manufacturing Segment In March,24, the company incorporated a WOS ; “Kewal Kiran
Growing cotton is covered under the agricultural sector instead of
Channel-​Wise Revenue Mix -
the textile sector.
3 Himatsingka America Inc. Co. has in-​house manufacturing facilities located across Bangladesh Lifestyle Limited" with an intent to focus on further developing and
Lakshmi Machine Works The Centre may bring more product lines, such as t-​shirts and
Expanding global brand & license portfolio Domestic - 88%
innerwear, under the coverage of nearly ₹11,000-​crore production Manmade fibres are primarily crude oil derivatives. Joint Venture and Sri Lanka. In FY24, it had a manufacturing capacity of ~10 mn enhancing product mix for women’s wear & accessories.
linked incentive (PLI) scheme for the textile sector Quarterly Geographical Revenue Split The company is strengthening it's global licensed and owned brand Modern Trade -1%
Their prices are dependent on crude oil prices. Their raw material is Twill & Oxford LLC, is a JV Company based out of UAE and pieces p.a. of woven garments, 12mn pcs p.a.of woven bottoms, 13 mn Quarterly
covered under the petrochemical industry instead of the textile industry. Domestic - 6% portfolio across geographies. It owns several luxury and mass Yearly E-​Commerce - 6%
has filed for voluntary liquidation under the applicable pcs p.a. of baby wear through ~130 production lines.
Therefore, the scope of the textile industry begins with the first step
Quarterly Exports - 94% brands like Christy, WelLiving Home, SPACES, LIVING, Welspun, etc. Export - 5%
where natural or manmade fibre is converted into thread i.e. yarn. regulations and is same is under process.
in the USA, Europe & India. It also owns many licensed brands such
Manufacturing Facilities Majority of its capacity is situated in Bangladesh. Gender-​wise Revenue Bifurcation
as Marvel, The Champions, Scott Living, goodful, American Cotton, Yearly
Quarterly Co. has 4 manufacturing plants with an installed The company has installed a wash plant at Progress Apparels, one of Men - 83%
etc. The revenue share of the company's branded products has
3. Increasing demand in Summer Clothes
capacity of ~140,000 spindles in the spinning unit Quarterly PDS’s manufacturing subsidiaries in Bangladesh with a capacity to Women - 14%
2. Spinning – yarn/thread makers: Distribution Network: increased from 11% to 20% in the previous 5 years.
and ~153 million meters in the textile processing wash 6 mn garments p.a. and fulfill 90% if the current wash Kids - 3%
The company has presence in over 150 countries, with Revenue Bifurcation - Segment Wise -
Yearly unit. requirement. This facility is funded by Netherland based Good Fashion Product-​wise Revenue Bifurcation
marketing offices in Chandigarh, Bhopal, Gurugram, New Home Textiles - 90%
Spinning involves making thread/yarn from fibre.
Fund. Yearly Outerwear - 81%
Yearly Delhi, and Mumbai, and overseas operations in New York, Flooring - 10%
Spinning mills buy cotton from farmers/manmade fibre from refineries and
Partnership with Jasper Conran, London Innerwear - 19% Garmenting
convert it into thread.
USA, Dubai, and UK Revenue Bifurcation
Co. partnered with the UK brand Jasper Conran for Investment Revenue from this segment comes from PPE sales and in the Bulk
Depending upon the requirement of customers, spinning mills get specialised Home Textiles (B2B)-67%
in making cotton yarn, manmade yarn or blended (mixed) yarn Yearly an exclusive bed and bath collection. The first Share Holding Pattern In Feb,24, their subsidiary, Norlanka Manufacturing India Private textile business and from customers in the US & Europe.
Home Textiles (B2C)-14% Share Holding Pattern
collection was launched on Spring 22. The range is Yearly Limited acquired 5% stake in Frontier Knitters Private Limited for 1 cr. High-​Value Cotton Shirting Fabric (9% of FY 20 Revenue)
Higher demand for summer clothes in the Western world has
Home Textiles (E.Com)-5%
marketed internationally under the Jasper Conran The Company is engaged in manufacturing of apparels Co. provides unstitched Shirting Fabric in this segment. Sales growth
boosted India’s textile exports to $5.86 billion in the first two
Advanced Textiles - 5%
months of FY25, an increase of 5.4% from $5.56 billion.
London brand, exclusively through Indo Count. The of 3% was due to higher domestic sales of fabric and yarn from
Flooring (B2B) - 7% Quarterly
Exports of cotton yarn, fabrics, and handloom products increased
partnership will support the long-​term vision to be Amravati.
8.24% to $1.95 billion in April-​May from $1.8 billion a year ago. Flooring (B2C) - 1%
3. Knitting – fabric/cloth makers: Share Holding Pattern the Conran Store for home textile across the globe
This increase in demand is due to various factors, including a post-​ Quarterly Revenue Mix
Quarterly Quarterly
pandemic recovery in consumer spending,
Share Holding Pattern Branded Textile: 40%
a preference for lightweight and breathable fabrics during warm
Fabric makers (knitters, weavers) buy yarn from spinning mills and convert it into cloth. Share Holding Pattern
months, and the increasing popularity of sustainable and ethically Branded Apparel:16%
Fabric makers mainly sell the cloth to garment manufacturers as a B2B sale who in turn,
produced garments from India.
make readymade garments for selling in the market. Garmenting: 13%
Share Holding Pattern
However, some fabric manufacturers sell their cloth directly to customers (B2C) by Share Holding Pattern Distribution Channel High Value Cotton Shirting: 9%
creating their own brands and sales channel (e.g. Raymond) that meet the need of people
who do not buy readymade clothes and instead like to get them stitched from tailors. Engineering: 10%
Yearly Real Estate: 13%
Yearly Others: (3%)
Yearly
Yearly Raymond UCO Denim (a JV with UCO NV of Europe) manufactures
specialty ring denim in India. This JV was formed in 2006. The
business caters to customers across the Americas, Europe, Asia as
well as domestic markets.

Market Share
Hope you liked the Webinar ✨🤩 Market share of over 60 percent in the worsted suiting fabric space
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Share Holding Pattern in India.
Community ✨👇🏻🔗 Today, Raymond is the largest OTC branded fabric player in the
Join our WhatsApp Community Share Holding Pattern organized shirting segment

Share Holding Pattern Quarterly

4. Garmenting – apparel manufacturing and retailing:

Final stage: Cloth prepared by knitters/weavers is converted into garments and sold to
customers.

It includes two segments: Apparel manufacturing which makes the clothes and Apparel
retailing which sells the clothes in the shops. Text
Text

Text

Some players do exclusive apparel manufacturing or apparel retailing; however, some

players do both, manufacturing as well as retailing.

New Products
The company launched new TVCs for the Men & Women section and a new range of
AntiViral products featuring masks for men and women and Innerwear for Men. Yearly
Apparel Apparel
manufacturing retailing

EBO Outlay

Co. forayed into the exclusive brand outlet (EBO) segment and has 18 EBOs, 4 each in Delhi
& Punjab, 2 each in Haryana, Madhya Pradesh & Maharashtra, 1 each in Rajasthan, Gujarat,
Uttar Pradesh & Odisha is under a franchisee-​owned and franchisee-​operated model. Co.
plans to open 125 EBOs by FY26

Brand Revamped
The company revamped their brand identity by introducing a new Brand Logo and
Share Holding Pattern
Architecture during FY21.

"It's essential for an investor to assess at what stage of the textile value chain a company operates" Project Lakshya
Co. launched Project Lakshya to reinvent the entire distribution network. It has successfully
implemented this program across Karnataka, Rajasthan, Gujarat, Maharashtra, Telangana,
Bihar, Haryana, Andhra Pradesh and Assam. The Co. is marketing its products directly to
retailers, thereby replacing the traditional push model with the pull model. 26.5% revenue
contribution of Lakshya Distributors in 9M FY24
Key characteristics of business model of textile companies:

1. Commodity nature of products: 2. Competitive intensity and pricing power:
Highly fragmented with many small players dominating each of the segments of the
In the value chain, spinning and knitting lead to commodity products. textile value chain i.e. spinning, fabric-​making and apparel.
Spinning: Characteristics of the yarn are specified by the fabric maker in terms of the One of the major reasons for such composition of the textile industry is govt. policies
type of fibre, count number, blend ratio etc. that promote small-​scale industries in the textile sector, which is driven by the large
employment generation in the textile sector.
Once these specifications are finalized, then the yarn produced by one spinning mill is
not very different from the yarn produced by another spinning mill. Therefore, most of Other major reason: Low entry barriers because of low technology, raw material and
the yarn produced in the industry is commodity yarn. labour is easily available.
Manmade fibre mills & cotton spinning mills: both are fragmented.
High Fragmented; Small-​Players; High Competition; No Pricing Power.
Similarly, the fabric segment is also dominated by commodity products.
Once a manufacturer provides the specification for the fibre in terms of quality of yarn,
colour etc., then there is not much difference in the fabric produced by one fabric
manufacturer and another.
In the spinning segment, an investor would note that even though India has the world’s second-​
Nevertheless, a few players are able to differentiate themselves by way of making largest (20%) spindle capacity at 50 million spindles; however, still the average size of a spinning
fabric of premium quality (better grams per square meter (GSM) or by producing unit in the country is only about 30,000 spindles.
fabric that needs less processing before manufacturing garments.
As per ICRA, the industry is so fragmented that the largest spinning player has only 3% of the
industry’s capacity.
3. Impact of changing raw material prices
For any Textile Company, Raw material costs whether it is cotton or manmade fibre or
the fabric or garments form the largest portion of its operating costs.
Raw-​material costs around 60% of its revenue. Hence, prices or availability of its raw
material would have a significant impact on the textile players.
4. Cost competitiveness, economies of scale:
A.
Out of all the textile players, cotton spinning mills are most sensitive to raw
material price and availability changes. (harvest & non-​harvest season).
Therefore, the cotton-​spinning mills end up having a high level of inventory
stocking during the harvest season.
B.
Cotton prices are very volatile and depend upon good or bad weather, the
minimum support price (MSP) declared by the govt., demand and availability
globally because fibre is a globally-​traded commodity.
Domestic and international cotton prices move together with a lag, expectations of
next season’s crop as well as the prices of manmade fibre, which also act as a
substitute etc.
Therefore, the ability of the spinning mills to pass on increases in the input
costs is very low. Hence, their Margins shrink.
Manmade fibre spinning mills: Prices of manmade fibre are linked to crude oil
prices, which are very volatile.
Big Players Monopoly: Grasim Industries Ltd, which is the only producer of viscose
stable fibre (VSF) in India and has more than 85% market share, the
Competition Commission of India (CCI) found that the company was involved in
unfair business practices.
5. Capital-​intensive nature of operations:
Highly fragmented ; Small players ; Intense price-​based competition. Hence, players
with the lowest cost of production gain major competitive advantages.
Most of the products made by the textile value chain are non-​differentiable
commodities in nature, except garment-​manufacturing; therefore, one can easily
switch.
Raw material cost is the largest cost component (not under control)
As a result, the main method for the players to reduce their costs is operating
leverage i.e. economies of scale
As a result, the fixed costs get spread over a larger volume of production and the per-​
unit cost of production declines.
As a result, small players in the textile value chain are at a competitive disadvantage
and are highly vulnerable during economic downturns.
In the spinning segment: If a mill has a smaller spindle capacity than the industry
average of 40,000 spindles, then the mill would find it difficult to be cost-​efficient and
would be at a competitive disadvantage.
Moreover, as a garment manufacturer grows big, then it is able to sell directly to big
brands and gain large orders offering higher profit margins, which brings strength to its
business model. (making it for CK, US Polo, Tommy, NIKE, Adidas)
6. Cyclicity and seasonality in the textile industry:
The textile industry is a capital-​intensive sector, which needs large capital both for
installing plants & machinery as well as for managing working capital due to the
raw-​material-​intensive nature of the business.
Out of all the segments of the textile value chain, spinning is the most capital-​intensive;
both from the perspective of fixed capital (manufacturing plant) as well as working
capital (inventory and receivables).
As per the estimates, spinning plant with an industry-​average size of about 25,000
spindles needs about ₹90-100 cr for installation and produces a revenue of about
₹90-110 cr indicating a fixed asset turnover ratio of 1, which is low in comparison to
other manufacturing industries.
Almost 70% of the yarn spinning units use cotton. Cotton is an agricultural
commodity, which is harvested from October to March. Spinning mills have to buy
most of their cotton during the early part of this harvesting season because the best
cotton is available only during the start of the season.
The practice of buying a large amount of cotton during the harvesting season leads to a
large requirement of inventory by spinning mills, which makes their operations
working capital intensive. In addition, it also puts them at risk of inventory losses if
the prices of cotton decline later on.
Moreover, during the non-​harvesting months, April to September, the availability of
cotton is lower and additionally, the cotton prices start reflecting the expectations of
the cotton crop in the next harvesting season. Therefore, the quality, availability and
price of cotton become uncertain during the non-​harvesting season.
In comparison, the working capital intensity of spinning mills based on manmade
fibre is lower than cotton-​spinning mills because manmade fibre is available around
the year without any seasonality. As a result, manmade fibre-​spinning mills do not need
to do excess stockings.
Joint Venture
Co. has been in a joint venture partnership with Pepe Jeans Europe since August 2017. In
Dec 2021, the entire stake of Pepe Jeans Europe in the JV was sold and vested in the G.O.A.T
Brand Labs Pte. Ltd. The JV is currently headed by 4 directors from G.O.A.T. brands and the
7. Export uncompetitiveness of Indian textile Co. has invested Rs.13 Cr in the JV till 31 March 2022.
companies:
The demand in the textile sector is linked to the macroeconomic conditions in the
Brand Ambassdors
country because the purchase of fabric/garments is linked to consumer
confidence, spending power and discretion.
Dollar Club - Salman Khan
With respect to the producers in China and other South-​East Asian countries, Indian
spinning mills are less competitive on a global scale. Dollar BigBoss - Akshay Kumar
Dollar Lehar - Saif Ali Khan
In addition, the textile sector sees a high level of seasonality because most of the The poor competitiveness of Indian spinning mills is not limited only to cotton yarn. In Hope you liked the Webinar ✨🤩
sales are seen in the winter season because the shopping for garments increases fact, in the manmade fibre (MMF) yarn as well, Indian yarn producers are not Dollar Women - Yami Gautam
in the festive season, which happens in winter and also winter garments are usually competitive enough. Higher taxes, crude oil, and adverse custom duties levied by the Hope you liked the Webinar ✨🤩 To attend more such sessions in future and learn stock market, join our WhatsApp
more high-​value in nature than summer garments. Indian govt have put Indian MMF yarn producers at a disadvantage. Community ✨👇🏻🔗
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As a result, the sales of the textile industry especially apparel pick up in winter every On the contrary, the favourable environment experienced by Chinese MMF yarn Community ✨👇🏻🔗 Join our WhatsApp Community Focus on High Margin Products
year. players has led them to have large capacities and benefits from economies of scale
improving their cost competitiveness.
Join our WhatsApp Community Co. plans to increase the High-​margin product contribution from 27% in FY23 to 33% by
One strategy used by the textile mills to reduce the risk in their business is to diversify.
Companies diversify their business in terms of different products, customers, market
FY26
As a result, Indian manmade fibre yarn producers are not able to export their yarn
geographies, sales channels etc.
and most of the production of India’s manmade yarn is consumed domestically.
A few textile mills opt for vertical integration, both forward and backward
Export incentives to the textile sector in India are less than the incentives like
integration so that they may perform more value-​adding steps in-​house leading to
higher profitability. favourable duty structure available to textile companies in Vietnam, Sri Lanka,
Bangladesh and China.
As a result, textile companies of these countries are able to export to India and give a
lot of competition to Indian textile companies in the Indian market.

A few fabric producers create a brand for their products by selling them directly to Therefore, an investor would notice that the spinning mills segment is highly capital
For the same above reasons, in the fabric-​making segment, about 85% of the industry
customers (B2C) unlike sales to garment manufacturers (B2B). intensive both from the perspective of fixed capital as well as working capital.
capacity is in the unorganized sector.

By creating a brand in the B2C segment (e.g. Raymond Ltd), these fabric players are
The unorganized sector dominates the Indian apparel manufacturing as well as
able to differentiate their products and in turn, earn a better profit. Fabric-​making segment is also capital intensive and needs significant investment in
retailing segment (Most of the majority of the players do not have pricing power).
Raw Material: High Sensitivity Raw Material: Low Sensitivity plant and machinery as well as working capital.
Quarterly
Branding/ Design abilities form the basis in the direct B2C apparel segment. Branded Only some of the established apparel brands have some pricing power.
apparel is able to earn a higher price than commoditised unbranded garments. Another factor that makes textile companies capital-​intensive is their high power
Nevertheless, most brands have to follow the market in terms of sales and match the
requirements.
discounts to their competitors.

Spinning mills are the most power-​intensive segment of the textile value chain. For a
The Indian branded apparel retail industry is intensely competitive, with the presence
spinning mill, power costs are about 10% of revenue.
of several large domestic and international brands, as well as smaller, regional brands.

Textile sector is one of the largest employers in India, second only to agriculture.
Therefore, governments, both centre and state, support the creation, maintenance and
modernisation of textile mills via their policy and fiscal incentives.

Yearly

Share Holding Pattern