AN NUA L REP ORT

Indian Textile
and Apparel
Industry 2021

1
 Conten
t Global GDP
Global Textile & Apparel Industry

Overview Indian Textile & Apparel

Industry Overview

Impact of Covid on Indian Textile & Apparel Industry

Indian Textile Industry: Structure and Supply

Scenario Financial Health of Indian Textile Industry

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of information presented in this document. However, neither Wazir Advisors nor any of its office bearers or analysts or employees can be held responsible for any financial consequences arising
out of the use of information provided herein. However, in case of any discrepancy, error, etc., same may please be brought to the notice of Wazir Advisors for appropriate corrections.
2020: A year that
was
•The year 2020 has been the most challenging year in our lifetimes. What started as a promising year for
our industry quickly turned into a difficult one. COVID-19 pandemic brought the entire world to a
standstill, equitably affecting markets and supply chains globally.
• Consumer purchase of textile and apparel were hit badly due to the global lockdowns and economic
recession. The global apparel consumption is estimated to have shrunk by 22% in 2020. However, 2021
looks brighter given the onset of vaccination drives, growth in e-commerce sales of apparel, and
resumption of global supply chains.
• We present to you our review of the Indian textile and apparel industry in 2020. This document covers
key industry statistics - consumption, production, export, import, and financial health.

1
Global Industry
Overview

2
Global GDP
Contraction
Annual GDP Change
(%)
2020 2021
Country 2019
Pre Covid Forecast Revised Estimate Pre Covid Forecast Revised Forecast

Chin 6 6 2. 5. 8.
a 3 8 2
EU 1.3 1 -7.2 1.5 4.2

U 2. 1. -3.4 1. 5.
S 2 7 8 1
India 4.2 5.8 -8 6.5 11.5

Worl 2. 3. -3.5 3. 5.
d 8 3 3 5

Data Source: IMF World Economic Outlook Update, January 3

2021
Global Apparel
Market Value US$ billion

Global apparel market

Projected CAGR
Region 2019 2020 Y-o-Y Change 2025 (P) shrunk by 22%, coming
2019-25
down from US$ 1,635

EU-27 264 219 -17% 1% 280 billion in 2019 to

US$ 1,280 billion in 2020.
United States 235 171 -27% 2% 265
The consumption is expected
China 181 173 -4% 11% 340 to reach to pre-Covid levels

Japan 106 83 -21% 0.50% 110 over next couple of years

and then retrace its growth
India 78 55 -29% 10% 135
path to reach US$ 2,007
Brazil 48 34 -30% 4% 60 billion by 2025.

Canada 33 27 -19% 2% 37

RoW 690 517 -25% 2% 780

World 1,635 1,280 -22% 3.50% 2,007

Data Source: Published Data & Wazir 4

Analysis
Global Apparel
Market
Category-wise Share of Global T&A Trade (US$
Billion)
Global T&A Category
Fibre Trade GR
3%
2019 Share
Yarn CA 1000
70 Fibre
Fabric
839 60
Appare 4% Yarn
R
CAG 776 66 8% 6% 3%
l Fabric
52 51 6%
Home Textiles 641 50
Appare
Other 42
43 600 19%
l
Total 27
32
50 482
444 Home Textiles
2 348
Others
267

180
129 148 160
114 27 26 58%
21 29 30
41 52 53 53 60
2005 2010 201 201 2025
5 9 (P)

The global textile and apparel trade has grown at a CAGR of 4% Apparel dominated T&A trade with a 58% share in the overall trade
since 2005 to reach US$ 839 billion in 2019 and is expected to reach value, followed by fabrics with a share of 19%.
US$ 1 trillion by 2025, growing at a CAGR of 3%.

Data Source: UN Comtrade & Wazir 5

Analysis
Global Textile and Apparel
Trade
Leading Textile and Apparel Exporters Value US$
(2019) billion
Country Exports Share (%)
• China’s share in global T&A
trade in 2019 was 34%.
Textile Apparel Total
The share has come down
Chin 134.6 149.9 284.5 34
from 39% in 2015.
a
Vietnam 10.2 33.7 43.9 5
• Vietnam and
Bangladesh 1. 40. 42. 5 Bangladesh
8 9 7
Germany 15.5 23.8 39.3 5 were the second and the
third largest textile and
Indi 20. 16. 36. 4 apparel exporters in 2019,
a 2 2 4
Italy 12.8 23.6 36.4 4 respectively.

Turke 12. 16. 28. 3 • India is the 5th largest

y 2 1 2 exporter of T&A in the
USA 21.7 5.2 26.9 3
world with exports worth
Spai 5 14. 19. 2
n 3 3 US$
France 5.6 12 17.6 2
36.4 billion.
RO 117.2 146.3 263.5 31
W
Total 356.8 481.9 838.7

Data Source: UN Comtrade & Wazir 6

Analysis
Leading T&A Exporters Category-
wise
Fibr USA Australi China Home Textiles China India Turke
e a y
Export Value (US$ 6.67 3.3 3.1 Export Value (US$ 19.2 5.7 4.1
Bn) 0 2 Bn) 0 9 4
Market Share 20% 10% 9% Market Share 37% 11% 8%

Yar China India Vietnam Apparel China Bangladesh Vietnam

n
Export Value (US$ 5.5 3.6 3.1 Export Value (US$ 149.9 40.9 33.7
Bn) 3 9 7 Bn) 0 0 0
Market Share 21% 14% 12% Market Share 31% 8% 7%

Fabric China Italy S. Korea

Export Value (US$ 72.7 7.5 7.2

Bn) 0 7 6
Market Share 45% 5% 5%

Data Source: UN Comtrade & Wazir 7

Analysis
Indian Industry
Overview

8
India’s Domestic Textile and Apparel
Market
India’s Domestic Textile and Apparel Market Size (US$
billion)
Indian domestic textile and apparel
market is estimated at US$ 75 billion
GR 190
in 2020-21. The market fell 30% from
CA %
10 US$ 106 billion in 2019-20.
13

The market is expected to recover and

-30% 42
grow at 10% CAGR from 2019-20 to
106
GR reach US$ 190 billion by 2025-26.
CA % 8
10
20 75
Apparel constitutes ~73% share of
6.5
50 15 the total T&A market in India.
135
4
28 11 78
55
2
5 35
21

2005- 2010-11 2019- 2020-21 (E) 2025-26

06 20 (P)

Apparel Technical Home Tota

Textiles Textiles l

Data Source: DGCI&S and Wazir 9

Analysis
Indian Textile and Apparel
Exports
Indian Textile and Apparel Exports (US$
billion)
India’s T&A exports reached US$
33.5

GR billion in 2019-20.
CA % 65
11 Due to the impact of Covid-19,
4
India’s
11
T&A exports are
-15%
expected to fall
GR
CA around 15% to reach US$ 28.4
5%
billion
in 2020-21.
33.5 India’s exports of T&A are expected
28.4 30
29 2
1 2
to grow to US$ 65 billion by 2025-
5
4 4.8
9
18
26, growing at a CAGR of 11%.
32
1 12 15.5 12
10
2005- 2010-11
4 2019- 2020- 2025-26(P)
5 4
06 4 20 21(Est) 7
4 3.8
Fiber Yar 4 Fabri 2
Apparel Home 1.8 Othe 3 Tota
n c Textiles r l

Data Source: DGCI&S and Wazir 10

Analysis
Indian Textile and Apparel
Imports
Indian Textile and Apparel Imports (US$
billion)
India’s T&A imports were US$ 8.6
15. billion in 2019-20. However, they are
2
GR 1.4 expected to decline by around 35%
CA %
10 to reach US$ 5.6 billion in 2020-21.
2.7
The imports of T&A are expected to
-35%
1.9 grow at a CAGR of approx. 10% to
8.
GR
6
0.8
reach US$ 15.2 billion by 2025-26.
CA
9% 1.5 4.1
5.
1.1 6
0.5
4. 0.9
1
1 0.32 2.3
2.7 0.16 0.
0.7
0. 0. 2 0.5
0. 1.61 1.5
2 4.3
2 1
1. 0.29 0.3
0.
3 2.4
1.52 1.6
11
2005- 2010-11 2019- 2020-21 2025-26(P)
06 20 (Est)

Fibe Yar Fabri Apparel Home Othe Tota

r n c Textiles r l

Data Source: DGCI&S and Wazir 11

Analysis
Impact of Covid on Indian T&A
Industry
Due to the pandemic, all economic activities except for the essential goods and services came to a
standstill. The textile and apparel industry was no exception to this.

Manufacturing Shutdown Cancelled Orders

The industry faced a complete shutdown for around 2-3 Due to the uncertainty across the market, international
months, while a few manufacturers who dedicated their and domestic buyers cancelled or suspended their orders,
production systems for PPE manufacturing were adding to the woes of the industry.
permitted to function. However, most of the units
operated at sub- optimal utilization levels for next Slump in Physical Retail Sales
several months. Lockdown restrictions across the country resulted in a
slump in the retail sales of apparel for at least 4-5
Logistics Suspended months. Moreover, the festive and wedding season sales
Disrupted logistics and frozen external trade caused due were deeply impacted.
to the pandemic affected the entire value chain alike.
India’s April and May 2020 net trade were around 50% New Consumer Trends Emerged
lower month-on-month compared to that of the previous India’s e-commerce sale of goods and apparel saw a
year. steep
rise in 2020, thanks to an increased market.
Work-From-Home drove the demand for casual
wear
12
apparel over formals.
Category-wise Recovery in Domestic
Market
Consumption
different.
in all the apparel categories was impacted negatively in 2020. However, the pace of recovery for each category was

Sales for kids wear

Pace of and
casual wear recovered
Recovery faster, while ethnic wear
and formal wear were the
Hig
h worst hit segments
Lo
w

Party, Evening Formal Deni Ethnic Kids Casual

& Occasion wear m wear wear wear
wear

Innerwea Loungewea
r r

13
Indian Textile Industry:
Structure and Supply
Scenario

1
4
Staple Fibre
Production
Indian Fibre Production Breakup (million
Kg)
Fibre Production Share 2019-20 CAGR 2015-19
India’s stapl
2015-16 2019-20 (%) (%) total e
ibre production stood
9,279 at
Cotton 5,750 5,750 62% 0% kgs
million
Silk 29 36 < 0.5% 6% in
2019-20.
Wool 47 45 0.50% -1%

Others 1,690 1,683 18% 0%

Natural Fibre 7,516 7,514 0%

Viscose Staple Fibre 342 578 6% 14%

Polyester Staple Fibre 894 1,085 12% 5%

Acrylic Staple Fibre 107 98 1% -2%

Other MMSF 5 4 < 0.1% -5%

MMSF 1,347 1,765 7%

Total Fibre 8,863 9,279 1%

Data Source: Ministry of Textiles, GoI and Wazir 15

analysis
Staple Fibre
Exports
India’s Fibre Exports (US$
million)
Fibre Exports Share 2019-20 CAGR 2015-19 India exported fibre worth US$
2015-16 2019-20 (%) (%)
1,891 million in 2019-20,
which has reduced at a CAGR
Cotton 1,939 1,057 56% -14%
of 9% since 2015-16.
Silk 14 14 1% -1%
Cotton occupied 70% share in
Wool 49 26 1% -15% total fibre exports in 2015-16,
Others 206 291 15% 9% while this has reduced to 56%
Natural Fibre 2,208 1,388 -11% in 2019-20.

Viscose Staple Fibre 274 148 8% -14% India’s Polyester staple fibre
exports have grown at a
Polyester Staple Fibre 197 289 15% 10%
CAGR of 10% since 2015-16.
Acrylic Staple Fibre 54 50 3% -2%

Other MMSF 16 16 1% 0%
MMSF 540 503 -2%

Total Fibre 2,748 1,891 -9%

Data Source: DGCI&S and Wazir 16

Analysis
Staple Fibre
Imports
India’s Fibre Imports (US$
million)
Fibre Imports Share 2019-20 CAGR 2015-19 India imported fibre worth
2015-16 2019-20 (%) (%)
US$ 2,382 million in 2019-20,
which has grown at a CAGR
Cotton 394 1,328 56% 35%
of 16% since 2015-16.
Silk 159 165 7% 1%
Overall imports of man-made
Wool 324 248 10% -6% staple fibre (MMSF) has grown
Others 86 149 6% 15% at a CAGR of 9%.
Natural Fibre 963 1,890 18%

Viscose Staple Fibre 73 112 5% 11%

Polyester Staple Fibre 113 134 6% 4%

Acrylic Staple Fibre 71 100 4% 9%

Other MMSF 95 145 6% 11%

MMSF 351 491 9%

Total Fibre 1,314 2,382 16%

Data Source: DGCI&S and Wazir 17

Analysis
Yarn
Production
Indian Yarn Production (million
Kg)
Yarn Production Share 2019-20 CAGR 2015-19
India’s total yar
2015-16 2019-20 (%) (%) n
spun production
was million kg in 5,71
Cotton Spun 4,138 3,996 71% -1% 3
Yarn 2019-20.
Blended & 100% non-
1,527 1,663 29% 2% Polyester filament
cotton spun yarn yarn
Total spun yarn 5,665 5,713 100% 0% has grown at a CAGR
(PFY) production
5% since 2015-16.
Polyester Filament Yarn 3,205 3,934 5% has
of

© Annual Report: Indian Textile and Apparel Industry 2021, is a copyright of Wazir Data Source: Office of Textile Commissioner, Govt. of India and Wazir 18
Advisors Analysis
Yarn
Exports
India’s Yarn Exports (US$
million)
Fibre Exports Share 2019-20 CAGR 2015-19 In 2019-20, India’s total yarn
2015-16 2019-20 (%) (%)
exports stood at US$ 4,813
million.
Cotton spun yarn 3,572 2,774 58% -6%
Exports of spun yarn has
Man made spun yarn 671 680 14% 0%
declined at a CAGR of 5%
Other spun yarn 122 138 3% 3% since 2015-16.
(Silk, Jute) India’s Nylon filament yarn
Total spun yarn 4,366 3,593 -5% exports has grown at a

Viscose filament yarn 52 36 1% -9% CAGR of 35% between

2015-16
Polyester filament yarn 914 1,048 22% 3%
and 2019-20.
Nylon filament yarn 10 32 1% 35%

Other MMSF 309 46 1% -38%

MMSF 1,285 1,162 -2%

Total Yarn 5,651 4,813 -4%

Data Source: DGCI&S and Wazir 19

Analysis
Yarn
Imports
India’s Yarn Imports (US$
million)
Fibre Imports Share 2019-20 CAGR 2015-19 India imported US$ 1,285
2015-16 2019-20 (%) (%)
million worth of yarn in
2019-20.
Cotton spun yarn 42 19 1% -18%
India’s imports of viscose
Man made spun yarn 177 334 26% 17%
filament yarn saw a sharp
Other spun yarn 239 126 10% -15% rise between 2015-16 and
(Silk, Jute) 2019-20 at a CAGR of
Total spun yarn 459 478 1% 29%.

Viscose filament yarn 58 161 13% 29%

Polyester filament yarn 127 177 14% 9%

Nylon filament yarn 76 67 5% -3%

Other MMSF 322 402 31% 6%

MMSF 583 807 8%

Total Yarn 1,042 1,285 100% 5%

Data Source: DGCI&S and Wazir 20

Analysis
Fabric
Production
Indian Fabric Production (Million Sq.
Mtr.)
Fabric Production Share 2019-20 CAGR 2015-19 Fabric production in India stood
2015-16 2019-20 (%) (%)
at 7,436 million sq. mtr, which
has grown at 2% CAGR in the
Mill Sector 2,315 2,022 3% -3%
past five years.
Decentralized Sector 62,269 74,266 97% 5%
The production of fabric from
Grand Total (Exc. Khadi, decentralized sector has also
64,584 76,288 4%
Wool & Silk) grown at a CAGR of 5%, while
production of mill sector has
decreased at 3% CAGR .

Data Source: Office of Textile Commissioner, Govt. of 21

India
Fabric
Exports
India’s Fabric Exports (US$
million)
Fabric Exports Share 2019-20 CAGR 2015-19 India exported fabric worth
2015-16 2019-20 (%) (%)
US$ 5,066 million in 2019-20,
which has grown at 1%
Cotton Woven 1,750 1,905 38% 2%
CAGR since 2015-16.
Synthetic Woven 2,088 1,879 37% -3%
Woven fabric comprised 92%
Other Woven 713 860 17% 5%
of the total fabric exports of
Total Woven Fabric 4,551 4,644 1% 2019-20.
Knitted Fabric 240 422 8% 15% However, exports of knitted
Total Fabric 4,791 5,066 1% fabric has grown at 15%
CAGR since 2015-16.

Data Source: DGCI&S and Wazir 22

Analysis
Fabric
Imports
India’s Fabric Imports (US$
million)
Fabric Imports Share 2019-20 CAGR 2015-19 Fabric imported by India in
2015-16 2019-20 (%) (%)
year 2019-20 worth US$
2,324 million.
Cotton Woven 163 182 8% 3%
Imports of knitted fabric and
Synthetic Woven 712 868 37% 5%
synthetic woven fabric have
Other Woven 630 725 31% 4%
increased at 12% and 5%
Total Woven Fabric 1,505 1,774 4% respectively since 2015-16.
Knitted Fabric 349 550 24% 12%
Total Fabric 1,854 2,324 6%

Data Source: DGCI&S and Wazir 23

Analysis
Garments and Made-ups
Production
Indian Garments and Made-ups
Production
Production Garment production in India
Y-o-Y change
2018-19 2019-20 2020-21 (Est.) was estimated at 22 billion pcs
in 2019-20, while made-ups
Garments (Mn 21,000 22,000 16,000 -27%
pcs) production stood at approx.
Made-ups (Mn kg) 2,300 2,400 2,100 -12%
2.4 billion Kg.

Due to Covid-19, the 2020-

21 apparel and made-ups
production is expected to fall
27% and 12%, respectively.

Data Source: Wazir estimates 24

Garments and Made-ups
Exports
India’s Garments and Made-ups Exports (US$
million)
Exports Share 2019-20 CAGR 2015-19 India exported garments worth
2015-16 2019-20 (%) (%)
US$ 15,509 million in year
2019-20, declining at a CAGR
Cotton garments 8,359 8,205 53% 0%
of 2% since 2015-16.
Synthetic garments 3,994 3,371 22% -4%
Made-ups exports on the
Other garments 4,637 3,933 25% -4%
contrary grew at 2% CAGR
Total garments 16,990 15,509 -2% from 2015-16 to reach US$
Made-ups 6,494 6,941 2% 6,941 million in 2019-20.

Data Source: DGCI&S and Wazir 25

Analysis
Garments and Made-ups
Imports
India’s Garments and Made-ups Imports (US$
million)
Imports Share 2019-20 CAGR 2015-19 India imported US$ 1,145
2015-16 2019-20 (%) (%)
million worth of garments and
US$ 1,022 million worth of
Cotton garments 239 464 41% 18%
made ups in 2019-20.
Synthetic garments 150 336 29% 22%
Imports of synthetic garments
Other garments 191 345 30% 16%
has increased at 22% CAGR
Total garments 580 1,145 19% since 2015-16.
Made-ups 881 1,022 4%

Data Source: DGCI&S and Wazir 26

Analysis
Domestic Market Size of Technical
Textiles
Domestic Market Size of Technical Textiles in India (US$
billion)
The Indian technical textiles market
was estimated at US$ 20 billion in
2019-20, and grew at a CAGR of
-25%
20
10% since 2015-16.

% However, due to Covid-19, the

10
GR
CA
15 market is expected to fall 25% in
2020-21 to reach US$ 15 billion.
11

2005- 2015-16 2019- 2020-21

06 20 (Est)

Data Source: Wazir Estimates Based on Published 27

Data
Technical Textiles
Exports
Imports of Technical Textiles by India (US$
million)
India’s exports of Technical Textiles in
2019-20 was worth US$ 2,423
million, which has grown from US$
2,42
CAG
R 3 1,528 million at a CAGR of 12%.
12%
-43%
1,978 India’s exports of Technical Textiles
1,718 from April to November 2020 has
1,52
8
been US$ 1,370 million.
1,38 1370
8

2015- 2016-17 2017- 2018-19 2019- 2020-21

16 18 20 (Apr-
Nov)

Data Source: DGCI&S and Wazir 28

analysis
Technical Textiles
Imports
Imports of Technical Textiles by India (US$
million)
India’s imports of technical textiles
have
grown
2015 toat a CAGR of 10%
2018.
-23% between
CAG
R 2,20 However, imports
10% 2,10 9
5
have declined at
23%
19 tofrom US$ 2,209
US$ 1,730 millionmillion in
in 2019-
1,655 1,67 1,70 2018-
20.
3
2 India’s imports of Technical Textiles
-55%
from April to November 2020 has
been US$ 769 million.

769

2015- 2016-17 2017- 2018-19 2019- 2020-21

16 18 20 (Apr-
Nov)

Data Source: DGCI&S and Wazir 29

analysis
Wazir Textile
Index

3
0
Wazir Textile Index (WTI) - H1
FY21
Top listed textile companies in terms of sales turnover in FY20 have been included for financial
analysis.
S. No. Company Name Annual Sales* - FY20 (Rs. Crore) *
Sales constitutes total operating
1 Arvind 6,705 income, standalone financials have
been considered for analysis
2 Vardhman 6,325

3 Welspun India 5,324

4 Trident 4,699

5 Raymond 3,186

6 KPR Mill 2,898

Note: Companies that have shown
7 Filatex 2,782 significant negative deviation in numbers or
those which have not yet reported the
8 RSWM 2,771
financials have not been included in the
9 Sutlej 2,379 overall analysis.

10 Nahar Spinning 2,083

Data Source: Money 31

Control
Half yearly Analysis for the Selected Top
Players
Half yearly Sales Trend – H1 FY21 (Rs.
Crore)
-83% -17% -52% -45% -49% -19%
-53% -26% -5% -28%

3520 3111
2896
2738 2626
2304
1879
1663 1607 1494 1377 1398
1243 1278
92
65 76 656 75
8
4 9 0
Raymo2n7 KPR Sutlej Nahar
Arvind Vardhman Welspun India Trident
Mill Filatex RSWM Textiles Spinning
d8
Half yearly EBITDA Margin Trend – H1
FY21 21%
19% 18% 19% 20%
15% 22%
10%
8% 8%
6% 6% 6% 6%
3% 2%
-4% -1% 1%

Arvin Vardhman Welspun Triden Raymond KPR Filate RSWM Sutlej Nahar
d India t Mill x Textiles Spinning

H1 H1 Growth
FY20 FY21 % -70% Data Source: Money 32
Control
Half yearly Analysis - Major Expenses as % of
Sales
60% 58% 58% 64% 65%
Raw78%
80% Material 51% 49%
52%
50% 46%
57% 56% 57% 59%
58%
45% 44% 44%
Cost
% of Sales
H1 FY20 H1 Arvin Vardhma Welspu Triden Raymon KPR Filate RSWM Sutlej Nahar
FY21 d n n t d Mill x Textile Spinnin
s g
54%
Employee Cost
% of Sales 16% 15% 17% 19%
12% 10%
12% 9% 11% 9% 10% 11% 13% 14% 14% 13% 14%
H1 FY20 H1 3%
FY21 4%
Arvin Vardhma Welspun Triden Raymon KPR RSWM Sutlej Nahar
d n t d Mill Textile Spinnin
Filatex s g
58%

35%
Other Costs 25%
27% 29% 24% 24% 27%
% of Sales 25% 15% 24% 22% 24%
24% 23% 11% 10% 10% 20%
19%
H1 FY20 H1
FY21 Arvin Vardhma Welspu Triden Raymon KPR Filate RSWM Sutlej Nahar
d n n t d Mill x Textile Spinnin
s g

Data Source: Money 33

Control
Market Update - Key Economic
Indicators
India’s GDP Average IIP for apparel
Index of Industrial Production Textiles
Apparel
decreased by 47% in H1
(at constant 20
(IIP*)
0 FY21 as compared to H1
prices)
15 FY20, while that of textiles
0

71.3
-15.8% showed a decline of 44%.
10
0

60. 50

Feb'1

Apr'1

Jun'1

Oct'1

Dec'1

Apr'1

Feb'2
Aug'1

Oct'1

Dec'1

Feb'1

Aug'1

Oct'1

Dec'1
0

Aug'
June'

June'
Apr'17

18
7

0
17

19

9
0

Average WPI for textiles

H1 FY20 decreased by 4% in H1
H1 FY21
Wholesale Price Index Textiles
Apparel FY21 as compared to H1
India’s real GDP shrinks 14 (WPI*) FY20, while that of apparel
0
by 15.8% in H1 FY21 as declined by 0.4%.
13
compared to a growth of 0

4.8 per cent during the 12

0
same period last year.
11

Jun'1

Feb'1
Oct'1

Feb'1

Oct'1

Dec'1

Apr'1

Oct'1

Feb'2
June'

Aug'1

Dec'1

Apr'1

Aug'

Aug'1

Dec'1
June'
Apr'17

18
7

0
17

19

9
0

10
0

Data Source: Reserve Bank of India, Economic Advisor, Govt. of 34

India
Measuring Financial Performance of Indian Textile
Sector
•Wazir Textile Index has been developed for number to assess quarterly (Q1), half yearly (H1),
assessing the overall financial performance of nine monthly (9M) and yearly performance (FY)
the textile sector on a continuous basis. for subsequent years against the set benchmark.
• This index takes the collective performance of top • Overall textile index includes the following three
ten textile companies (by sales) of 2015-16 as components:
the base/benchmark which is represented by the » WTI Sales: Consolidated sales index of top ten
base Index number 100. companies
• Base value of 100 is assigned separately to each » WTI EBITDA: Consolidated EBITDA index
quarter performance and full year performance in
» WTI Cost: Consolidated index for cost of Raw
2015-
material, employee & others
16,andcorrespondinglyfinancialperformance of
the textile industry is benchmarked to this base

35
US Monthly Apparel Store
Sales
Values in US$
bn.
Jan. to Dec. 2020 store sales stand at
US$ 130 bn., approx. 32% less than
23.
6
same period last year.
18. The sales recovered sharply in Jun.
16. 16. 16. 6
15. 15.7 15.8
0 5
15. 7 14.2 14. 14. 2020, and then again in Sep. after a
6 4 13.
11. 12. 12. 4 3
11.912.1 12.3
13.1
10. 6 5
7 period of drastic reduction since
5
7 March.
7.
4 5.
7
1% 6% 1.
9 -12% -14%
-26% -25% -23%
-31%
-39%
-53%
-66%
-88%

Ja Fe Ma Ap Ma Ju J Au Se Oc No De
n b r r y n ul g p t v c

2019 2020 YoY

Change

Data Source: Eurostat; Extra EU-27 Imports 36

Data
US Monthly Home Furnishings Store
Sales
Values in US$
bn.
Jan. to Oct. 2020 store sales stand at
US$ 41 bn., approx. 10% less than
same period last year.
4.7 4.9 5.0 4.8 4.8 4.9
4.5 4. 4.7 4.6 4.
The sales recovered sharply in May.
4.2 4.4 4.0
4.2 5 4.4 4.3 5
3.6 2020, and then again in Jun. after a
3.
1 period of drastic reduction since
4% 8%
3% 2.0 -1% 2% 3%
March.
-4%
-21%
-35%

-56%

Ja Fe Ma Ap Ma Ju J Au Se Oct(P)
n b r r y n ul g p

2019 2020 YoY

Change

Data Source: US Census 37

Bureau
US Monthly Apparel Import
Update
Values in US$
bn.
US apparel imports are recovering
steadily after hitting lowest in May
2020. Jan. to Nov. 2020 apparel
8. 8.
8 7.8 imports stand at US$ 59 bn., approx.
7.6 6. 6. 6. 4 6. 6. 7.4 6.9
6.8 6. 6.
7 5. 6.1
2 7 9 6 6 5.5 5.3 24% less than same period last year.
9 5.2 0
4.
3.
2. 0
4
7
-4%
-7%
-11% -11%
-15% -15%
-22%
-32%
-45% -43%

-60%

Ja Fe Ma Ap Ma Ju J Au Se Oc No
n b r r y n ul g p t v

2019 2020 YoY

Change

Data Source: US Census 38

Bureau
Share Change of Top 10 Apparel Suppliers in
US
Country Import Value YoY share
(US$ mn.) Change
China has lost approx. 7% share in
China 14,068 -6.5% the US apparel imports which has
Vietnam 11,711 3.7% mainly been taken up by Vietnam,

Bangladesh 4,868 1.2% Bangladesh and Cambodia

Indonesia 3,308 0.3%

2,818
India -0.1%
2,611
Cambodia 1.2%
2,006
Mexico -0.4%
1,647
Honduras -0.5%
1,430
Jordan 0.3%
1,363
Sri 0.2%
13,408
Lanka 0.6%

Others
Data from Jan to Nov
2020

39
Monthly Apparel Import Update of
EU
Values in €
bn.
EU-27 apparel imports are
recovering
steadily since Jun. 2020.
Jan. to Oct. 2020 apparel imports
8. 8.
7. 7. 1 0 7.5 7.5
7. were € 58.4 bn., approx. 14% less
5 4 6.
6. 2 6.
6. 6.
6.
5
9
6 than same period last year.
3 4 5. 5.
1 5. 5.
8 7
5 5
4.
6
-1%
3. 3.
-1%
-4% 6 6
-8%
-14% -14%
-17%
-20%

- -37%
38%

Ja Fe Ma Apr Ma Ju J Au Se Oc
n b r y n ul g p t

2019 2020 YoY

Change

Data Source: US Census 40

Bureau
Share Change of Top 10 Suppliers of
EU
Country Import Value YoY share
(€ mn.) Change China’s share increased by 1% during
Chin 17,717 1.0% Jan to Oct. 2020. The main losers
a were Bangladesh, India and
Banglades 10,773 -0.7%
h Cambodia.
Turke 6,840 0.6%
y
U 3,281 -0.2%
K
Indi 2,644 -0.6%
a
Cambodia 2,138 -0.5%

Viet Nam 2,314 0.1%

Morocco 1,740 -0.3%

Pakistan 1,823 0.1%

Myanmar 1,806 0.3%

Others 7,324 0.1%

Data from Jan to Oct

2020

41
About Wazir
Advisors
Wazir’s services for the textile sector clients covers complete Ourservicesspantheentirebreadthoftextilemanufacturing
business cycle, including strategy formulation, implementation, value chain – from fibre to finished goods. We cover the
forming alliances and joint ventures, investments, market following segments:
understanding, sector analysis, due diligence, etc. • Fibres and Filaments
Our experience with leading Indian and international companies, • Yarns
public sector organizations, Government departments, international • Fabrics
development agencies, trade bodies, etc. has helped us to develop
• Garments
a deep understanding of global textile sector dynamics and right
connect with the people who matter.
• Made-ups
• Technical Textiles
Our consulting team possesses experience across the key
functions of operations, sourcing, projects and marketing in the • Textile Machinery and Equipment
sector. The team members have executed strategy and • Handlooms and Handicrafts
implementation assignments in key textile and apparel • Personal Protective Equipment (PPE)
manufacturing countries.

Wazir leverages its body of knowledge, contacts and combined

expertise of its team to deliver value to clients.

4
2
OUR SPE CI ALI Z A
TION
Strateg
y
Wazir delivers practical, implementable strategies
for clients to meet their objectives. We assist clients
to conceptualize, evaluate and select business
opportunities in the textile and apparel sector.
Be it corporate strategy intending to enhance
profitability or new market opportunity identification
or sector growth strategy to support MSMRs, we
are geared to advise our clients efficiently and
effectively.
• Corporate Strategy
• Market Opportunity Assessment
• Market Entry Strategy
• Location Analysis
• Business Performance Enhancement
• Product Diversification
• Marketing and Distribution Strategy
• Sector Mapping and Growth
Strategy
• Policy Formulation Support
• Government Scheme Evaluation
Implementation Alliances
Wazir provides implementation services to
textile and apparel sector entities to convert the
Partnerships and collaborations are ways to
achieve accelerated growth, expand market
plans into reality. Wazir has the capability to reach and attain technical advancement.
execute every strategy that it recommends.
Realizing the importance and need of inter-
Whether it is to manage a Government schemes organization alliances in textile and apparel sector,
or to improve productivity in apparel factories Wazirhas developed broad range of services to
or to identify the most suitable technology; we support companies and organizations looking for
have in-house competence to cover all the inorganic growth globally.
critical elements of implementation. • Company Due-diligence
• Benchmarking and Gap Study
• Joint Venture
• Process Re-engineering
• Marketing Tie-up
• Productivity and Profitability Improvement
• Technology Transfer
• Management Contract
• M&A Execution
• Project Management and Monitoring
• Strategic and Financial
• Supply Chain Optimization Funding
• Feasibility and Techno Economic
Viability (TEV) Study
• Cluster and Industrial Park
Development
4
3
 www.wastra.in

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Contact
Us
Prashant Agarwal Wazir Advisors
prashant@wazir.in | +91 9871195008
linkedin.com/company/WazirAdvisors
Surender Jain
surender@wazir.in | +91 7042101333 twitter.com/WazirAdvisors

Sanjay Arora
sanjay@wazir.in | +91 9971110566
W astr
Varun Vaid a
varun@wazir.in | +91 9899985979 linkedin.com/company/Wastra

B. Prakash
twitter.com/WastraByWazir
prakash@wazir.in | +91 9810866927

Wazir Advisors Pvt. Ltd. 3rd Floor, Building No.115, Sector 44, Institutional Area, Gurugram – 122 002, National Capital Region,
India.