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Textiles Sector India

January 2014



Table of Contents

I. Sector Overview

1. Sector Highlights

2. Main Indicators

3. Production

4. Production and Value Added

5. Textile Machinery

6. Bank Financing

7. Foreign Direct Investments

8. Wholesale and Consumer Prices

9. Exchange Rates

10. TextilesTrade

11. Textile Trade (cont’d)

12. Textile Sector Exports

13. Wages

14. Employment

15. Government Policy

16. Government Policy (cont’d)

II. Fibres

1. Cotton Production

2. Cotton Supply and Demand

3. Cotton Prices

4. Silk

5. Wool

6. Wool Imports

7. Jute

8. Jute (cont’d)

9. Jute Projections

10. Man-made Fibres

11. Fibres Production Forecast

12. Mills

13. Mills Closure

III. Yarn

1. Man-made Filament Yarn

2. Spun Yarn

3. Spun Yarn (cont’d)

4. Yarn Production Forecast

5. Top Spun Yarn Manufacturing Units

IV. Fabrics

1. Fabrics Production

2. Fabrics (cont’d)

3. Apparel Trade

V. Main Players

1. Cotton Corporation of India

2. Cotton Corporation of India (cont’d)

3. Bombay Rayon Fashion Ltd.

4. Alok Industries Limited

5. Trident Group

6. Trident - Yarn

7. Trident – Home Textiles

8. Shri Lakshmi Cotsyn

9. Shri Lakshmi Cotsyn (cont’d)



I. Sector Overview

India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means Apr 1, 2013 – Mar 31, 2014. In Indian documents, FY (fiscal) 2014 is also labeled FY13-14.

The remaining nine months of calendar 2014, i.e. Apr-Dec, belong to fiscal year 2015.

In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by

the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or

what in India is referred to as FY 2013. This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report.

When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source.



Sector Highlights

India is the second largest producer of textiles and garments in the world after China. The country is also the second largest cotton producer and

global leader in jute production. In terms of exports, it ranks amongst the top five global players, constantly expanding its share in world trade. With

traditionally positive trade balance, the textiles sector accounts for about 10% of country's total exports and contributes around 4% to Indian GDP

and 14% to its industrial production.

Overview

Prospects

Risks

Segmentation

India is one of the few countries in the world that has developed at all levels of the textile value-chain, from natural and synthetic fibres through yarn

and fabrics up to finished goods, thus having a quite diversified and competitive position on the global market.

On the other hand, the favourable demography (increasing share of working women, urban population and young people) along with rising income

levels are expected to act as a key growth factor for the Indian textile and apparel industry. The strongest competitive feature of the industry on the

international markets still lies in the cheap cost of the products.

Despite the stable growth of the sector in the past decade, there are several issues that could seriously affect its future prospects. The southern

regions of the country are facing unstable power supply, which increases production costs. The high domestic lending rates make financing in the

sector more difficult. Another risk for the sector is the fact that it is a labour intensive business and therefore dependent on appropriate work force.

The exposure of sector players to foreign currency and price volatility is also substantial.

The unorganized and decentralized market structure represents another weakness of the textile sector, as organized players represent only 5% of

the total market players. Small enterprises are not so resistant to external economic shocks and many firms were forced to consolidate and posted

losses as a result of the slowdown in their main export markets – the United States and the European Union. Moreover, the small scale of the

companies restricts their investment abilities and most of the manufacturing technology is outdated. Most of the raw materials are grown by farmers

who are later dependent on the government procurement policy and have little bargaining power in trading with private companies.



Source:

Main Sector Indicators

Textile sector main indicators

CEIC, UN COMTRADE; *Trade and FDI data for calendar years; Trade data based on HS, incl. HS50-HS62

2007 2008 2009 2010 2011 2012

Raw cotton production(mn kg) 5,215 4,929 5,186 5,760 6,004 5,679

Raw silk production (mn kg) 18.3 18.4 19.7 20.4 23.1 23.7

Raw wool production (mn kg) 43.9 42.8 43.1 43.0 44.4 46.1

Manmade fibre production (mn kg) 1,244 1,066 1,268 1,285 1,234 1,263

Yarn production (mn kg) 4,003 3,912 4,193 4,713 4,373 3,155

Fabrics production (mn sq m) 56,025 54,198 59,521 61,761 59,605 61,965

Textiles consumption (mn kg) 6,318 6,140 6,466 6,939 6,374 n/a

Cloth consumption (mn sq m) 802 1,144 1,653 1,754 1,883 n/a

FDI (USD mn) 100 204 199 84 148 169

Sector export, USD bn 21.0 20.3 19.6 24.2 29.5 28.7

Sector export, % total 14.4 11.1 11.1 11.0 9.8 9.9

Sector import, USD bn 3.0 3.4 3.0 3.6 4.6 4.8

Sector import, % total 1.4 1.1 1.1 1.0 1.0 1.0

GDP current prices (INR tr) 49.9 56.3 64.8 78.0 89.7 100.2



Comments

Source:

Production

After unfavourable development in 2011, the textile sector performance improved in 2012. The textiles index increased from 134 to 142, while

the apparel index jumped by more than 10pps to 144 in 2012, reaching the highest level since 2007.

In FY 2014, apparel production witnessed several ups and downs – starting the year at 241, it slumped to 131 in November. On the other

hand, the dynamics in textiles production have been more moderate - the index started from 142 in April 2013 and after pick-up in the

summer months stood at 143 in November 2013.

Industrial Production Index, annual dynamics (2004=100) IPI, monthly dynamics

CEIC

125

120

127

136 134

142

150

135 137

142

130

144

150

154

161

176 181

183

142

145 153

166 170

172

2007 2008 2009 2010 2011 2012

Textiles Apparel

Manufacturing Total index

142 144 148 150 156 148 146

143

241

154 162

171

159

185

133 131

176 173 175

183

175 176 179

170 167 166 165

171 165 166 169

162

Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13

Textiles Apparel

Manufacturing Total index



Comments

Source:

Production and Investment

Despite the recent development, the Indian textiles industry remains a low value-added, labour-intensive production. The future development of the sector

will depend on investments in machinery upgrade and human resources development.

Textile sector output and value added (INR bn) Textile sector capital (INR bn)

CEIC

1,717.0 1,977.1

2,719.7 2,947.5

198.2 263.3 379.6 310.9

2008 2009 2010 2011

Total Output Net Value Added

861.

0

974.

6

1,08

5.7

1,17

8.8

1,05

8.2

1,24

9.0

1,34

3.8

1,51

9.5

1,14

8.9

1,34

2.3

1,65

9.1

1,72

4.5

2008 2009 2010 2011

Fixed Capital Productive Capital Invested Capital



Source:

Textile Machinery

Capacity, Production and Utilisation (INR bn)

Comments

Segment-wise production of textile machinery (INR bn)

Ministry of Textiles

Category Installed

capacity 2006 2007 2008 2009 2010

Ginning and

processing 1.7 1.1 1.2 0.8 0.7 1.1

Spinning and allied

machines 43.9 33.2 35.5 23.4 20.4 33.9

Synthetic fibre/yarn

machines 8.9 5.8 6.3 4.1 8.3 9.0

Weaving and allied

machines 7.0 5.8 6.2 4.1 5.0 6.0

Processing

machines 8.9 5.9 6.4 4.2 4.6 7.0

Hosiery machines 0.7 0.5 0.5 0.3 0.4 0.5

Textile machine

parts 2.2 2.4 1.2 0.8 0.3 0.5

Textile testing

equipment 3.2 1.1 2.5 1.7 1.7 2.0

Multiple segments 1.4 0.5 0.5 0.3 0.3 0.4

Others 2.6 1.3 1.3 0.9 0.9 1.1

Total 80.5 57.5 61.6 40.6 42.5 61.5

%Increase/

Decrease 31.0% 7.0% -34.0% 4.0% 45.0%

Year Installed capacity Production Capacity Utilisation

2005 70.0 44.0 63%

2006 80.5 57.5 71%

2007 80.5 61.6 76%

2008 80.5 40.6 50%

2009 80.5 42.5 53%

2010 90.0 61.5 68%

The domestic textile machinery industry covers on average less than

50% of the domestic demand.

During the 11th Five year plan, the annual machine production fell short

of the set targets.

The textile machinery industry is expected to grow at a compound rate

of 17% during the Twelfth Five Year Plan.



Source:

Bank Financing

Textiles sector credit stock as at end-Mar of the respective year

Outstanding credit as at end-Mar of the respective year (INR bn)

Textiles sector share in total industrial credit

RBI

964.0 1,027.0

1,213.8 1,461.0

1,594.2

1,835.4 1,893.0

6.5%

18.2%

20.4%

9.1%

15.1% 13.1%

2007 2008 2009 2010 2011 2012 Nov'13

Textiles credit, INR bn Annual change

11.2%

9.7% 9.3% 9.1% 8.2% 8.2% 8.0%

2007 2008 2009 2010 2011 2012 Nov'13

477.5 513.1

612.3

774.4 839.0

925.0 926.0

10.8 14.7 13.8 14.6 14.0 22.0 20.0 52.9 64.0

116.7 152.6 159.2 189.1 204.0

422.9 435.2 471.0

519.4 582.1

699.4 743.0

2007 2008 2009 2010 2011 2012 Nov'13

Cotton Textiles Jute Textiles Man-Made Textiles Other Textiles



Source:

Foreign Direct Investments

FDI in Textiles (incl. Dyed, Printed) * Sectoral distribution of equity FDI (USD, 2000-Oct2013)

CEIC; Ministry of Commerce and Industry of India, Department of Industry Policy and Promotion *calendar years

Services 18.8%

Construction 11.1%

Telecommunications 6.3%

Campututer software 5.9%

Pharmaceuticals 5.5%

Textiles 0.6%

Others 51.8% 203.9

198.5

83.8

148.4

168.6

88.5

0.6%

0.7%

0.4%

0.5%

0.7%

0.5%

2008 2009 2010 2011 2012 Sep'13

FDI in textile sector, USD mn Textile sector in total FDI



Source:

Wholesale and Consumer Prices

Wholesale Price Index (2004=100)

Consumer Price Index (2010=100)

CEIC

100

120

140

160

180

200

Dec

-10

Jan-

11

Feb

-11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep

-11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb

-12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb

-13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Dec

-13

Total Textiles Cotton Manmade fibre Manmade fabric Woolen Jute Hemp and Mesta Others WPI

100

110

120

130

140

150

Jan-

11

Feb

-11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep

-11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb

-12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb

-13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Dec

-13

Clothing, Bedding and Footwear Total CPI



Source:

Comments

Exchange Rates

China's yuan currency appreciated against the U.S. dollar by about 3.9% in the current fiscal year (April 2013 - December 2013), as compared to the Indian

rupee, which depreciated by 12.8% thus boosting the competitiveness of Indian textile exports.

In the same period, the Bangladeshi taka depreciated by 4.8% against the U.S. dollar. Bangladesh is among the Asian countries with a fast growing share

in the global textile trade.

ER dynamics, yoy change %

X-Rates, Bangladesh Bank

-40

-35

-30

-25

-20

-15

-10

-5

0

5

10

Dec

-11

Jan-

12

Feb

-12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb

-13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Dec

-13

USD/CNY USD/INR USD/BDT



Comments

Source:

Textile Trade

India has a stable position among the leading global textiles exporters as its share has grown from 3.3% in 2005 to 4.2% in the calendar 2012. This growth

rate, however, is substantially below the expansion of China in the field. As global textiles trade almost doubled in the 2003-2012 period, China's share

rose from 17% to 33%. Nevertheless, China's exports are expected to decelerate due to rising per capita income, huge domestic consumption and the

stronger currency.

Among the EU countries, only Germany and Italy rank higher than India, but the latter has been losing share over the past few years.

Global textiles exports shares (USD) India and China in global textiles exports

UN COMTRADE, Emerging Markets Insight calculations

China (222bn) 32.5%

EU 28 (169bn) 24.7%

India (28.7bn) 4.2%

USA (24.5bn) 3.6%

Turkey (24bn) 3.5%

Bangladesh (23.4bn) 3.4%

Others (198.8bn)

27.5%

2.9 2.9 3.3 3.4 3.4 3.5 3.8 4.1 4.2 4.2

17.1 18.4

21.0

24.6 26.6

27.6 27.9

30.2 31.0 32.5

118

133

141

155

172 180

154

178

209

206

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012India export share China export share

World export index, 2001=100



Source:

Textile Trade (cont'd)

Textiles in India's external trade Textiles exports by main product groups, USD bn

UN COMTRADE, Emerging Markets Insight calculations ; Trade data for HS 50-62, calendar years

14.4

16.4

17.9

19.3 18.9

23.5

28.8 27.9

17.0%

15.8%

14.4%

11.1% 11.1% 11.0%

9.8% 9.9%

1.9% 1.5% 1.4%

1.1% 1.1% 1.0% 1.0% 1.0%

2005 2006 2007 2008 2009 2010 2011 2012

Net exports, USD bn Textiles in total exports, %

Textiles in total imports, %

4.9

3.5

7.2 8.

1 8.7

3.0

3.0 3.

8 4.9

4.3

10.3

11.3

10.6

13.7

12.9

2.1

1.8 2.

6

2.8

2.8

20.3 19.6

24.2

29.5 28.7

2007 2008 2009 2010 2011

Cotton, silk, wool Man made filaments and fibres

Apparel Others

Total



Source:

Comments

Textile Sector Exports

India's export of textiles traditionally exceeds the targets set in the state annual plans.

The slight underachievement in 2012 was mainly due to the economic crisis in the European Union that resulted in lower demand and restricted exports to

the region.

Textile exports (USD mn)

Bombay Rayon annual report based on DGCI&S data

Product 2010 -2011 2011- 2012 2012- 2013

Targets Achievement* Targets Achievement* Targets Achievement

Ready made garment 12,000 11,026 14,000 13,073 18,000 12,391

Textile (excl. cotton) 5,000 5,792 7,000 6,808 9,000 7,517

Man-made textiles 3,700 4,705 5,500 5,631 6,100 5,043

Handloom 300 346 500 554 400 518

Woollen textiles 630 442 700 508 750 418

Silk textiles 730 632 800 473 500 406

Handicrafts 2,200 2,301 2,700 2,706 3,300 3,305

Jute 275 460 350 457 500 387

Carpet 650 1,037 800 846 1,050 986

Total 25,485 26,471 32,350 31,056 39,600 30,971



Source:

Wages

Labour cost per manday worker (INR)

Region–wise monthly earnings at cotton textile mills (INR)

Labour cost comparison (USD per hour)

CEIC, IBEF report

4,500

5,500

6,500

7,500

8,500

9,500

Jan-

11

Mar

-11

May

-11

Jul-1

1

Sep

-11

Nov

-11

Jan-

12

Mar

-12

May

-12

Jul-1

2

Sep

-12

Nov

-12

Jan-

13

Mar

-13

May

-13

Jul-1

3

Ahmedabad Bangalore Coimbatore & Chennai Indore Kanpur Mumbai West Bengal

2008 2009

Spinning, Weaving and Finishing of

Textile Fibres 262.6 291.5

Wearing Apparel, except Fur Apparel 290.2 291.0

Knitted and Crocheted Apparel 230.0 254.8

Other Textiles 265.9 294.5 0.3

0.6

0.7

5.7

6.2

15.1

Pakistan

India

CoastalChina

SouthKorea

Hong Kong

USA



Source:

Employment

Employment in textiles and allied sectors, mn person

Textiles Commissioner Office, * forecast in the 12th Five Year Plan (2012-2017)

March 2011 End of 12th Plan (2016) * Planned increase in 12th plan

I. Textile sector 45.2 52.0 6.79

1 Cotton/Man-made Fibre/Yarn Textile/Mill Sector 1.4 1.6 0.21

2 Man-made Fibre/Filament Yarn Industry 0.2 0.3 0.04

3 Decentralised Powerlooms Sector 5.1 5.8 0.76

4 Handloom Sector 7.0 8.1 1.05

5 Knitting Sector 0.5 0.5 0.07

6 Processing Sector 0.4 0.5 0.07

7 Woollen Sector 3.2 3.7 0.48

8 Ready Made Garment Sector (including Knitwear Sector) 11.2 12.9 1.68

9 Sericulture 7.7 8.9 1.16

10 Handicraft Sector 8.0 9.2 1.2

11 Jute Industry 0.5 0.5 0.07

II. Allied Sector 60.2 69.2 9.04

1 Cotton (Agriculture, Ginning, Trade) 40.3 46.4 6.05

2 Sheep rearing 2.8 3.2 0.42

3 Jute Agriculture 17.0 19.6 2.55

4 Textile machinery industry & accessories 0.1 0.1 0.0

III. Total 105 121 15.81



Source:

Government Policy

TUFS

The government's incentive schemes for export and investment promotion have been the key drivers of the sector growth.

The Technology Upgradation Fund Scheme (TUFS) was introduced in 1999 for a five-year period and was extended several times.

Its main objective is to support the technology upgrade in the textile manufacturing sector. Under the scheme, producers are offered

5% (4% for spinning machinery) reimbursement of interest charged by financial institutions or protection of up to 5% per annum (4% in

respect of spinning machinery) against exchange rate fluctuation on foreign currency loans. Companies could also use a 5% interest

reimbursement and 10% capital subsidy for introduction of specified finishing machinery, garment machinery or technical textiles

machinery.

As of the start of 2014, the Textiles Commissioner Office has approved 3,965 applications with total project cost of INR 376.25bn and

subsidy requirement under the restructured TUFS (effective since April 2011) of INR 202.31bn.

According to the Working Group on Textile and Jute Industry, during the 12th Five year period, a total of INR 355.7bn will be disbursed

under the TUFS for projects worth INR 1,445.9bn.

SITP

ISDS

TMTT

Scheme for Integrated Textile Parks (SITP) provides funding assistance for setting up world-class textile manufacturing facilities to

meet international environmental and social standards. Up to 40% of the financing could be covered by the government and technical

advisory could be extended. Under the scheme, the central government is responsible for the balance funding as well as for providing

support in the form of land acquisition and infrastructure development.

Integrated Skill Development Scheme (ISDS) is designed to provide the sector with appropriate workforce. The scheme, which

provides training for candidates according to industry requirements, covers all the sub-sectors of the textile sector - textile and apparel,

handlooms as well as jute and sericulture.

The Technology Mission of Technical Textiles (TMTT) extends support for the development of the technical textiles segment.

Specifically, it addresses infrastructure improvement in terms of testing facilities, market development support, skilled manpower, R&D

and setting up of specifications and standards for technical textiles, among others. The program supports other activities like business

start-ups, workshops, social compliances, market development for institutional and export business and promoting contract research

and development through institutes of technology and textile institutes.




Source:

Government Policy (cont'd)

Cotton

trade

For several years cotton exports in India was conducted via a quota allocation basis, effective for both public and private entities. That

however weighted on companies in times of restricted domestic demand and instead of trading the extra volume firms were pushed to

keep large carryover stock. In mid-2011, the government placed cotton exports under Open General Licensing i.e. it could be exported

freely but this resulted in huge exports and increase in domestic demand. The gap had to be covered by imports, which pushed prices

up. In order to ensure availability of cotton to the domestic textile mills, the government of India banned cotton exports from the country

in March 2012. Later, the restriction was lifted again and currently exports are done under OGL with requirement for prior registration

with the Directorate General of Foreign Trade at the Ministry of Commerce and Industry.

There is no quota imposed on cotton imports, but the import duty stands at 14%.

Minimum

Support Price

To support local farmers, each year the government of India determines the Minimum Support Price (MSP) of cotton. These are the

rates at which the government procures cotton. The purchases are made in procurement centres across different regions of the

country.

In the 2012-2013 season, the government raised the MSP for the medium staple group by 29% to INR 3,600 per quintal. Similarly, the

MSP for long staple cotton was raised to INR 3,900 per quintal from INR 3,300.

In the 2013-2014 season, the government set the medium staple length price at INR 3,700 and the long staple length at INR 4,000 per

quintal.

Wool

The institution responsible for the wool sector development in India is the Central Wool Development Board (CWDB). The Indian

government has allocated INR 130.4mn for the implementation of CWDB's 2011-2012 annual plan. The main policy targets are the

improvement of wool fibre (through so-called sheep " health care", "breeding improvement" and better marketing of wool

manufacturing) as well as human resources development.

A major problem in Indian wool manufacturing is the outdated technical equipment in the unorganized sector, which results in low

productivity and also affects the health of workers.

Business Standard; Ministry of Textiles Annual Report



II. Fibres









Highlights

Source:

Cotton Production

Area and cotton yield

Staple-wise Cotton Production (thou bales of 170kg)

Cotton is the leading crop in India's textile sector,

accounting for more than half of the fibre consumption. Its

production, however, is largely dependent on weather

conditions with nearly 65% of the cultivation area being

rain-fed.

The 2012-2013 cotton season started with delayed sowing

in northern India due to late harvesting, while switching to

other competing crops led to lower acreage by about 6%.

The delayed monsoon across the cotton belt and the

southern states also resulted in lower acreage. The

hectares were down by 3-12% y-o-y in all states except for

Andhra Pradesh, where the acreage rose by more than

20% to 2.3mn hectares. Overall the sown area decreased

by some 10% in 2012.

The lower acreage resulted in reduced production and

import of cotton.

At the same time, a sharp rise in cotton imports from China

contributed to a price increase.

Cotton Advisory Board

Staple Group 2007-08 2008-09 2009-10 2010-11 2011-12

Short (below 20mm) 400 350 400 400 400

Medium 6,100 6,000 5,800 7,100 7,200

Long (27.5 to 32.0 mm) 23,700 22,200 23,800 25,900 27,200

Extra Long staple (32.5

mm & above) 500 450 450 500 500

Total 30,700 29,000 30,500 33,900 35,300

9.4 9.4 10.3

11.1 12.2

11.6 554

524

503

517

493 489

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

Area, mn hectares Yields, kg per hectare



Source:

Comments

Cotton Supply and Demand

According to the state-run Cotton Advisory Board, cotton production in the country will reach 37.5mn bales and consumption will stand at 29.7mn bales in

2013-2014, resulting in an exportable surplus of 9.0mn bales.

Cotton supply and demand (mn bales of 170 kg)

Cotton Advisory Board, Cotton year: October-September

Product 2007-2008 2008-2009 2009-2010 2010-2011 20011-2012 20012-2013P 2013-2014P

Opening stock 4.8 3.6 7.2 4.1 4.6 4.0 3.5

Crop size 30.7 29.0 30.5 33.9 36.7 36.5 37.5

Imports 0.6 1.0 0.6 0.2 0.8 1.5 1.7

Supply 36.1 33.6 38.3 38.2 42.0 42.0 42.7

Mill consumption 19.6 19.0 21.9 22.2 22.4 25.0 25.8

Small Mill consumption 2.2 2.0 2.3 2.4 2.2 2.3 2.4

Non-Mill consumption 1.9 1.9 1.7 1.3 0.5 1.0 1.5

Total consumption 23.7 22.9 25.9 26.0 25.1 28.3 29.7

Export 8.9 3.5 8.3 7.7 13.0 10.1 9.0

Total Demand 32.5 26.4 34.2 33.6 38.0 38.5 38.7

Carry forward 3.6 7.2 4.1 4.6 4.0 3.5 4.0



Source:

Cotton Prices

International prices - Monthly average outlook A Index (US Cents per lb.)

Prices of main raw cotton varieties (INR/kg)

Domestic prices raw cotton (INR/kg)

Comments

Cotton Corporation of India, CEIC

With the increased global uncertainty and the euro zone debt crisis in

the past several years, most commodity prices dropped with cotton

being no exception.

However, the substantial accumulation of reserves by China boosted

prices on the international market in 2012.

The local market has also showed signs of moderate price growth.

70

90

110

130

150

Jan-

12

Feb

-12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2

Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb

-13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Dec

-13

Bengal Deshi Medium Long Extra Long

70

110

150

190

230

Aug

Sep Oct

Nov

Dec Jan

Feb

Mar

Apr

May Jun

Jul

Cotton Season 2010-2011 Cotton Season 2011-2012


80

110

140

170

Aug

Sep Oct

Nov

Dec Jan

Feb

Mar

Apr

May Jun

Jul





Source:

Silk

Silk production, export and import (mn kg)

Silk production by type, 2012

Comments

CEIC;

India is the second largest producer of silk in the world,

accounting for 18% of the global production.

All four silk types are produced in India, with key

production regions being Karnataka, Andhra Pradesh,

West Bengal, Tamil Nadu and Assam.

In 2012, the total production of raw silk stood at 23.7mn

kg (mulberry and non-mulberry), up by 2.7% compared to

2011, with a compound annual growth rate (GAGR) of

5.3% in the 2007-2012 period.

Traditionally, India imports a certain amount of silk. Silk

imports rose from 8.1mn kg in 2007 to above 11mn kg in

2012, maintaining the country's import dependence in

spite of the higher domestic production.

China is the major supplier of raw silk to India with a share

of over 95%, followed by Brazil.

18.3

18.4

19.7

20.4

23.1

23.7

0.9

0.4

1.8

1.7

1.9

8.1

8.5

7.5

9.4

11.2

2007

2008

2009

2010

2011

2012

Import Export Production

Mulberry 79.0% Eri 13.2%

Tassar 7.3%

Muga 0.5%



Comments

Source:

Wool

The wool industry in India is small in size and concentrated predominantly in the northern states. It consists of both organised players (composite mills,

combing units, knit wear and woven garment units, machine made carpet manufacturing units, spinning units) and decentralised ones (hosiery and knitting

units, powerlooms, hand-made carpets units and independent dyeing and processing houses).

The top wool producing states are Rajasthan, Karnataka, Jammu, Kashmir, Andhra Pradesh and Gujarat.

Raw wool consumption is estimated to grow from 114mn kg in 2008 to 208mn kg in 2016 and 260.6mn kg in 2019. Domestic production will cover about

44mn kg of the demand, suggesting substantial importance of wool imports in the future.

Wool production, export and import (mn kg) Woolen production (mn kg)

CEIC, Central Wool Development Board, P - preliminary

43.9

42.8

43.1

43.0

44.4

46.1

4.3

4.9

6.4

7.6

7.9

96.2

68.3

70.5

98.0

78.1

2007

2008

2009

2010

2011

2012 P

Import Export Production

63.0

31.0 39.0

89.0

44.0

25.0 34.0

22.0

10.0 0.5

Wor

sted

yar

n

Woo

len

yarn

Woo

l top

s

Fab

rics

Sho

ddy

yarn

Bla

nket

s

Sho

ddy

fabr

ics

Kni

tted

good

s

Han

dmad

e ca

rpet

s

Mac

hine

mad

e ca

rpet

s



Source:

Wool Imports

Comments

Wool and cotton rags import (mn kg)

Raw wool import (mn kg)

Wool imports by country in quantity terms, 2012

Central Wool Development Board

India's raw wool production does not cover the needs of the local

woolen industry.

Moreover, most of the produced wool is of coarse quality and is used

mainly in the carpet hand-made industry. With domestic production

insufficient to meet the demand for fine-quality wool, the local

organized mills and hosiery sector production still depends almost

entirely on imports. The imports are conducted under the open

general licence (OGL).

The country traditionally imports raw wool as well as woolen rags.

91.8

85.3

82.7

95.5

140.5

186.4

112.9

2007

2008

2009

2010

2011

2012

Nov'13

93.1

65.7

68.3

94.8

76.3

77.2

60.8

2007

2008

2009

2010

2011

2012

Nov'13

18.1%

12.6%

6.8%

5.4%

3.9%

Australia

Pakistan

New Zealand

Syria

Italy



Comments

Source:

Jute

India is the largest producer of jute and jute goods in the world. Jute cultivation is best developed in the region of the Ganges river. The jute producing

states in India are West Bengal, Bihar, Assam, Orissa and Uttar Pradesh. According to the Ministry of Textiles, jute production creates direct employment

for some 370,000 people, with another 4mn employed indirectly. Under the Jute Packaging Material Act of 1987, jute is used as the main packaging

material in the country, which makes India the largest consumer of jute in the world. The potential for India's raw jute exports is limited due to significant

exports by Bangladesh, the world's largest jute growing country.

Raw jute production and import (mn bales of 180 kg) Jute consumption and export


8.2

9.0

10.0

10.3

9.3

9.5

0.2

0.3

0.8

0.9

0.9

0.9

2008

2009

2010

2011

2012

2013

Import Production

8.9

7.7

8.7

9.2

9.4

9.5

0.9

1.0

1.0

1.0

1.0

1.0

0.2

0.1

2008

2009

2010

2011

2012

2013

Export Domestic/industria consumption Mill consumption



Comments

Source:

Jute Goods

India is the leading producer of jute goods in the world, accounting for about 70% of the global production. Approximately 90% of the manufactured jute

goods are sold on the domestic market.

In terms of exports, most of the demand is for sacking goods and hessian. In value terms, exports of jute goods increased by more than 85% in the 2009-

2012 period, rising from INR 8.6bn to INR 15.89bn.

Jute goods production (mn kg) Jute goods consumption

Ministry of Textiles, Report on Jute Sector;

350 298 207 244 240 220

99

1,143 1,071

922

1,077 1,165 1,219

644

6.0

4.1

2.4

4.7 4.0 2.1

1.8

277

260

193

240 174 151

81

0

300

600

900

1,200

1,500

1,800

2007 2008 2009 2010 2011 2012 Apr-Sep'13

Others

Carpetbackingcloth

Sacking

Hessian183 182 184 167

880 1,034 1,080 1,119

1.2

0.9 0.1 0.0

142

133 118 115

0

200

400

600

800

1,000

1,200

1,400

1,600

2009 2010 2011 2012

Others

Carpetbackingcloth

Sacking

Hessian



Comments

Source:

Jute Projections

According to the government forecasts in the 12th Five Year Plan, the yield per hectare of jute will increase in the coming years, leading to a 20% higher

production at the end of the program period. At the same time, crop availability will be higher than domestic market requirements.

Cultivation Area, Productivity and Production Estimations Raw Jute Requirement and Availability Projections (mn bales)

Working Group for the Textiles and Jute Industry for the 12th Five Year Plan

Area Yield Production Production

(thou

hectares) (thou kg) (mn bales) (thou kg)

2013-14 820 2.4 11 19.8

2014-15 810 2.6 11.7 21.1

2015-16 780 2.8 12.2 22.0

2016-17 750 3.0 12.6 22.7

(July-June) Requirement Availability

2013-14 10.6 12.1

2014-15 10.9 12.9

2015-16 11.3 13.5

2016-17 11.8 14.0



Source:

Man-made Fibres

Production (mn kg)

Staple-wise man-made fibre consumption (mn kg)

Staple-wise man-made fibre production (mn kg)

Man-made staple fibre export (USD mn, calendar years)

CEIC, UN COMTRADE

1,295

1,396

1,215

1,622

2,246

1,997

2007

2008

2009

2010

2011

2012

1,065.8

1,268.1 1,284.7 1,234.2 1,263.4

877.5

2008 2009 2010 2011 2012 Apr-Nov'13

750

872

896

830

848

568

80

90

79

78

74

66

3

3

4

4

4

2

233

302

305

323

337

241

2008

2009

2010

2011

2012

Apr-Nov'12

Viscose Staple Polypropylene Staple Acryl Staple Polyester Staple

250 221 268 263 246

739

653 726 756

704

95 89 96 69 86

3 3 3 3 4

2007 2008 2009 2010 2011Viscose Staple Polyester StapleAcrylic Staple Polypropylene Staple



Source:

Comments

Fibres Production Forecast

India's government forecast reflects the market trend from the past few years. Although cotton remains the leading textile segment in the country, the role of

manmade fibres is constantly increasing The bigger share of synthetic fibres comes on the back of highly volatile cotton prices and rising fibre demand both

on the local market and internationally.

Production of fibres failed to reach the state targets at the end of the 11th Five Year Plan as well as in 2012.

Fibres production forecast (as in the 12th Five Year plan) and actual numbers in mn kg

Working Group for the Textiles and Jute Industry for the 12th Five Year Plan – forecast, Cotton Advisory Board- actual data

Type Eleventh Plan

Assumed growth in

12th period

Twelfth Plan projections

2011-12 actual 2012-2013 target 2012-2013

actual 2013-14 2014-15 2015-16 2016-17

Raw Cotton 6,001 6 6,091 5,679 6,456 6,844 7,254 7,689

Cotton (mn bales) 35 6 36 37 38 40 43 45

Manmade Fibres 1,234 8 1,640 1,236 1,765 1,898 2,042 2,197

Total - 6 7,732 6,915 8,221 8,743 9,296 9,886



Source:

Mills

Cotton and man-made fibre mills (excl. Small Scale)

Cotton and manmade fibre Small Scale Mills

Installed Capacity in Non – Small Scale

Installed Capacity and Employment in Small Scale Industries

Textile Commissioner Office

1,653 1,673 1,757 1,761 1,771 1,748

177 180

183 196 198 197

1,200

1,600

2,000

2008 2009 2010 2011 2012 Dec'13

Composite

Spinning

1,219 1,247

1,260

1,400

1,336 1,347

1,311

2007 2008 2009 2010 2011 Jan'12 Dec'13

Year Spindles (mn) Rotors (thou) Workers (thou)

2007 4.6 179.4 49.4

2008 4.7 185.2 51.0

2009 4.8 192.4 51.2

2010 5.2 237.2 56.3

2011 5.0 249.0 54.5

Jan’12 5.0 250.0 53.9

Dec'13 5.0 260.5 53.7

Year Spindles (mn) Rotors (thou) Looms (thou)

2007 35.0 461 56

2008 37.0 485 57

2009 37.7 494 57

2010 42.7 518 52

2011 43.3 523 52

2012 44.2 546 52

Dec'13 44.3 551 51



Comments

Source:

Mills Closure

The 530 textile mills that closed in India as of November 2013 had a total installed capacity of 9.66mn spindles, 124,000 rotors, 36,000 looms and

employed 279,000 workers.

A total of 38 of the closed mills are under liquidation.

Cotton and man-made fibre mills closed Reasons for closure (as of Nov 2013)

Textile Commissioner Office

-18.59% 6.30% 6.91%

27.48% 1.27% 3.58%

0

100

200

300

400

500

600

700

2007 2008 2009 2010 2011 2012 Oct'13 Nov'13

Spinning Composite Total, yoy change %

Financial difficulties

69.3%

Lock out 2.5%

Other reason 19.6%

Strike/ Labour dispute 8.7%



III. Yarn









Source:

Man-made Filament Yarn

Man-made filaments production (mn kg)

Man-made filaments export (USD mn, calendar years)

Man-made filaments consumption (mn kg)

Comments

CEIC, UN COMTRADE

Man-made filament exports expanded at a CAGR of 21% in the 2007-

2011 period, but then declined by almost 15% in 2012.

1,42

0

1,33

0

1,43

4

1,46

2

1,38

0

1,28

8

51

42

43

41

42

43

28

28

30

33

28

23

11

15

15

13

13

17

1,509 1,416

1,522 1,550 1,463

1,371

2007 2008 2009 2010 2011 2012

Polyester filament Viscose filament

Nylon filament Polypropylene filament

1,281 1,342 1,327

1,221 1,106

42

45

49

49

45

29

31

29

30

32

12

16

13

15

14

2007 2008 2009 2010 2011

Polyester filament Viscose filament Nylon filament Polypropylene filament

1,234

1,588

1,783

2,184

2,645

2,261

2007

2008

2009

2010

2011

2012



Source:

Spun Yarn

Comments

Cotton yarn production structure, 2011

Yarn production, mn kg

Blended and non-cotton yarn production structure, 2011

CEIC

• More than 95% of the cotton yarn in India is manufactured in private

mills.

• The role of the public sector companies in the blended and non-

cotton yarn production is stronger. Nevertheless, the share of the

latter is relatively small and is slowly decreasing and accounted for

only 0.8% of the production in 2011.

2,896 3,079 3,490

3,126 3,583

2,574

361 407

426 457

457

329

655 707

796 789

828

584

2008 2009 2010 2011 2012 Apr-Nov2013

Blended

Non-cotton

Cotton

Private mills 95.9%

Public mills 0.5%

Co-operatives 3.6%

Private mills 96.5%

Public mills 2.7%

Co-operatives 0.7%



Source:

Spun Yarn (cont'd)

State-wise Yarn Production, mn kg

State-wise Yarn Production, 2011

CEIC

1,601 1,511 1,595 1,818

1,487

490 545 590 651 656

369 342 367 395 368 214 190 197 296 198

1,330 1,324 1,444 1,553 1,665

4,003 3,912 4,193

4,713 4,373

2007 2008 2009 2010 2011

Tamil Nadu Punjab Maharashtra Gujarat Others Total

Andhra Pradesh

9.4% Gujarat 5.8%

Haraya 5.7%

Madhya Pradesh

7.6%

Maharashtra 9.4%

Punjab 17.6%

Tamil Nadu 44.5%

Cotton

Himachal Pradesh

5.8% Madhya Pradesh

7.3%

Maharshtra 11.3%

Punjab 21.7%

Rajasthan 23.3%

Tamil Nadu 30.7%

Non-cotton

Andhra Pradesh

5.8% Himachal Pradesh

6.6%

Madhya Pradesh

9.3%

Maharshtra 10.7%

Punjab 15.2%

Rajasthan 27.3%

Tamil Nadu 25.1%

Blended



Source:

Yarn Production Projections in 12th Five Year Plan

Filament Yarn Production (mn kg) Spun Yarn Production (mn kg)

Working Group for the Textiles and Jute Industry for the 12th Five Year Plan – forecast, CEIC- actual data

Type Eleventh

Plan Assumed

growth in

12th

period


2011-12

actual

2012-

2013

target

2012-

2013

actual

2013-14 2014-15 2015-16 2016-17

Viscose 42 9 49 43 54 59 64 70

Nylon 28 10 33 23 36 40 44 48

Polyester 1,380 11 2,326 1,288 2,576 2,853 3,160 3,501

Polypropyl

ene 13 6 20 17 21 22 24 25

Total 1,463 11 2,428 1,371 2,688 2,974 3,292 3,643

Type Eleventh

Plan Assumed

growth in

12th

period


2011-12

actual

2012-

2013

target

2012-

2013

actual

2013-14 2014-15 2015-16 2016-17

Cotton 3,121 8 3,904 3,583 4,217 4,554 4,918 5,312

Blended 779 8 889 828 960 1,037 1,120 1,210

Non-cotton 459 8 499 457 539 582 629 679

Total spun

yarn 4,359 8 5,292 4,868 5,716 6,173 6,667 7,201



Source:

Top Spun Yarn Manufacturing Units

Top Ten Spun Yarn Manufacturing Units, based on 2011-2012 production

Ministry of Textiles, Textile Commissioner Office

Cotton Producing mills Blended Producing mills Non Cotton Producing mills

1 Alok Industries Limited 1 Chenab Textile Mills S.G. Unit 1 Chenab Textile Mills S.G. Unit

2 Abhishek Industries Limited 2 Sangam Spinners 2 Rajasthan Spg & Wvg. Mills Limited

3 S.T. Cottex Exports Pvt .Ltd (L/O Shreyans Spinning

Mills) 3 Rajasthan Spg & Wvg. Mills Limited 3 Suryalakshmi Cotton Mills Limited (Amanagallu)

4 Aarti International Limited (Textiles Division) 4 Banswara Syntex Limited 4 Rajasthan Spg & Wvg. Mills Ltd (Heg Ltd.)

5 Pratibha Syntex Pvt.Limited 5 Rajasthan Spg & Wvg. Mills Ltd. 5 Vardhman Spg & Gen. Mills Unit-I

6 Nitin Spinners Limited 6 Pee Vee Textiles Ltd. 6 Suryalata Spinning Mills Limited B - Unit

7 Nahar Fibres Limited (Prop. Nahar Spg. Mills Ltd.) 7 Kanchan India Ltd (Spinning Division) 7 Ankur Udyog Limited

8 Trident Ltd. 8 Vardhman Yarns 8 Reliance Chemotex Industries Limited

9 Vardhan Fabrics (Unit of Vardhan Textiles) 9 Rajasthan Textile Mills 9 Madura Coats Pvt. Ltd.

10 Ginni Filaments Limited 10 Spentex Industries Ltd (Indo Rama Textiles Ltd) 10 Shiwalya Spinning & Weaving Mills (P) Ltd.



IV. Fabrics









Source:

Fabrics

Cloth Production, bn sq meter Fabrics production by sector, bn sq meter

CEIC, Textile Commissioner Office

26.9

28.9

31.7

30.6

33.9

6.8

7.8

8.3

8.5

9.3

20.5

22.8

21.8

20.6

18.8

2008

2009

2010

2011

2012

Blended Non-Cotton (incl Wool, Silk and Khadi) Cotton

1.8 2.0 2.2 2.3 2.4 1.4

6.7 6.8 6.9 6.9 7.0

4.1

33.6 37.0 38.0 37.4 38.0

22.4

12.1

13.7 14.6

12.9 14.5

8.3

0

10

20

30

40

50

60

70

2008 2009 2010 2011 2012 Apr-Oct2013

Hosierysector

Powerloom sector

Handloomsector

Mills



Source:

Fabrics (cont’d)

Comments

Per capita availability of cloth, sq meter

Cloth consumption, mn sq meter

Fabrics production projections bn sq meter

CEIC, Textile Commissioner Office, Working Group for the Textiles and Jute Industry for the 12th Five Year Plan

Most of the fabrics are produced in the decentralized sector (incl.

handlooms, powerlooms, hosiery), while less than 4% of the cloths in

India are manufactured in mills.

In terms of consumption, the majority of cloths are used for

production of garments. Among the three types of fabrics, the shares

are as follows: cotton – 76%, non-cotton – 97%, blended cloth –93%. 590

859

1,213 1,269 1,396

15

20

43 52

47

197

265

397 433

440

0

400

800

1,200

1,600

2,000

2007 2008 2009 2010 2011

Blended

Non-Cotton

Cotton

41.9

39.0

43.1

44.0

2007 2008 2009 2010

Type Eleventh

Plan Assumed

growth in

12th period


2011-2012

actual

2012-

2013

target

2012-

2013

actual

2013-14 2014-15 2015-16 2016-17

Cotton 30.6 12.0 36.7 33.9 41.1 46.0 51.6 57.7

Blended 8.5 11.5 9.5 9.3 10.6 11.8 13.2 14.7

Non-cotton 20.5 11.0 25.2 18.8 28.0 31.1 34.5 38.3

Khadi, wool

and silk 0.0 4.5 0.9 0.8 0.9 1.0 1.0 1.1

Total 59.5 11.5 72.4 62.8 80.7 89.9 100.3 111.8



Comments

Source:

Apparel Trade

Apparel exports to the European Union and the United States accounted for almost 78% of India's total apparel exports in 2011.

The undeveloped trade relations with countries like South Africa, Japan, South Korea and Australia and developing countries in Latin America, hold

significant potential for Indian apparel exports.

Export of apparel and clothing (USD mn, calendar years) Import of apparel and clothing (USD mn, calendar years)

UN COMTRADE

5,076

5,438

5,244

5,884

6,125

6,038

7,937

7,430

3,125

3,577

4,129

4,381

5,187

4,566

5,807

5,466

2005

2006

2007

2008

2009

2010

2011

2012

Knitted or crocheted Other

33

48

67

87

67

101

166

197

15

22

33

50

45

75

119

115

2005

2006

2007

2008

2009

2010

2011

2012

Knitted or crocheted Other



V. Main Players









Highlights

Source:

Cotton Corporation of India

Income and profit (INR bn)

Other indicators (INR mn)

Founded in 1970, the Cotton Corporation of India (CCI) is a state enterprise, controlled by the ministry of textiles. CCI is the largest cotton trading company in India.

The main purpose of the CCI is to support cotton prices without any quantitative limit when market prices of seed cotton reach support price levels set by the government. Cotton purchases are made at CCI’s own risk. The Corporation also buys cotton to meet export commitments. When the prices are above the MPS level CCI can undertake commercial operations at its own cost.

CCI buys cotton through open auctions. In 2012 an e-sales platform was introduced to ensure sale in favour of the highest bidder and reasonable profits from the purchase operations. The cotton is later sold to the mills ensuring that the growing demand for textile production is met.

The drop in cotton prices in 2012-2013 resulted in massive minimum support price (MSP) operation and purchase of over 2.29mn bales in the southern parts of the country. In the northern regions CCI purchased 48,000 bales in commercial operations.

In 2012-2013 domestic sales stood at 372,000 bales, with no exports.

Company data

16.4

49.8

84.0

27.5 18.0 20.3

0.2 0.7 0.1

0.0

-18.0

0.3

2007 2008 2009 2010 2011 2012

Total Income Net profit

2008 2009 2010 2011 2012

Equity capital 25.0 25.0 25.0 25.0 25.0

Reserves 328.3 330.6 329.7 149.8 174.9

Assets 7 915.7 2 102.6 2 410.7 416.9 4 524.4

Inventories 8 388.3 9 386.4 1 571.2 218.1 4 089.3

EPS 267.1 32.7 -3.8 -719.6 130.8



Source:

Cotton Corporation of India (cont’d)

Purchases and sales (thou bales of 170kg) Segment-wise sales performance (thou bales)

Company data

2006 2007 2008 2009 2010

Purchases 1 481 986 8 881 824 1 318

Commercial 271 761 20 171 1 317

Support 1 210 225 8 861 653 1

Sales 1 552 1 409 2 108 7 536 1 285

Domestic 1 246 1 271 1 955 7 487 1 268

Commercial 177 398 373 39 706

Support 1 069 873 1 582 7 448 562

Export 306 138 153 49 17

Commercial 30 29 127 0 5

Support 276 109 26 49 12

2008 2009 2010 2011 2012

NTC 78 105 115 85 54

STC/Cooperatives 58 82 59 17 30

Private 18 7 300 1 094 700 288

Total 19 7 487 1 267 802 372



Highlights

Source:

Bombay Rayon Fashion Ltd.

Financial Performance

Other indicators (INR bn)

Bombay Rayon Fashion Ltd (BRFL) was established

in 1986. It is a vertically integrated textile company,

which manufactures fibres, fabrics and apparel.

The company has manufacturing facilities located in

the states of Maharashtra, Karnatka, Tamilnadu and

Kerla. BRFL also owns a sampling unit in Mumbai.

As at 31 March 2013, BRFL’s manufacturing capacity

is 235mn meters of fabric and 88.8mn garment

pieces.

In the company’s domestic sales, top performers are

fabrics with a 93% share, followed by yarn with 3.6%.

Most of BRFL’s export is garments (88%) and fabrics

(11%).

The number of company employees as at 31 March

2012 was 24,104.

The company has six subsidiaries – three in India, and

one in each the United Kingdom, the Netherlands and

Italy.

BRFL’s shares are listed on the Bombay Stock

Exchange (BSE) and the National Stock Exchange

(NSE).

Company standalone data

13.5

16.3

22.8

27.5

32.1

1.5

1.8 2.3 2.

1

1.9

22.6% 18.5%

28.9%

-8.9% -8.6%

2008 2009 2010 2011 2012Total Income Net Profit Profit, yoy change

Product 2007 2008 2009 2010 2011 2012

Equity

Share

Capital

(INR mn)

0.63 0.69 1.12 1.28 1.35 1.35

EPS 19.23 21.89 18.90 19.06 15.50 14.02

Export

sales 4.21 8.74 10.04 11.11 13.23 12.27

Domestic

sales 5.05 4.69 6.11 11.44 14.14 19.72



Highlights

Source:

Alok Industries Limited

Sales and profit (INR bn)

Other performance indicators

Alok Industries Limited was established in 1986 as

polyester texturizing company. Later Alok expanded

into weaving, knitting, processing, home textile and

garments manufacturing, as well as, cotton spinning.

The retail operations of the firm are supported by a

wholly-owned subsidiary Alok H&A Limited, on the

domestic market, and the associated concern Grabal

Alok Ltd. in the UK.

Alok has more than 29,000 employees and is active in

more than 90 countries.

Exports account for about 26% of company’s sales, of

them 36% are in the USA, 29% - in other Asian

countries, 18% - in South Africa and 14% in Europe.

As at March 2013 company’s production capacity

stood at 150mn metres of sheeting fabric, 13,400

tonnes of terry towel, 186mn metres of apparel

fabrics, 25,000 tonnes of knitted fabrics, 22mn pieces

of garments and 240,000 tonnes of polyester textured

yarn per annum.

Alok is listed on the two biggest bourses in India –

Bombay Stock Exchange and National Stock

Exchange.

Company data

29.8

43.1

63.9

89.0

199.

2

8.2

12.7

18.8

26.2

54.9

1.9

2.5

4.0

3.8 9.2

2008 2009 2010 2011 2012

Net sales Operating profit (rhs) Net Profit (rhs)

2008 2009 2010 2011 2012

Export sales 10.4 10.5 15.6 22.2 30.3

Domestic sales 11.3 19.2 27.5 41.7 58.7

Total assets 91.6 121.8 142.7 182.4 247.3

Net Fixed Assets 59.8 71.5 83.3 94.7 97.4

Equity Share Capital 2.0 7.9 7.9 8.3 13.8

EPS 9.6 4.6 5.1 4.7 9.4

EBITDA margin, % 27.6 29.5 29.4 29.5 27.54

Debt Equity Ratio 3.56 2.62 2.75 3.14 2.99



Highlights

Source:

Trident Group

Profit (INR bn)

Other performance indicators

Trident Group operates in several sectors, including

textiles, yarn, paper, energy and chemicals.

The company is one of the largest yarn spinners in

India as well as among the top 5 home textiles

manufacturers in the world and one of the largest

exporters of terry towels from India.

The yarn segment accounts for about 46% of the

company’s revenue, while terry towel provides 34% of

the total.

Trident has three domestic campuses with a total of

eight yarn units and three home textile units.

The company has customers in over 75 countries

around the globe, exporting towels to all of these

countries and yarn to 19 of them.

Trident shares are listed on the National Stock

Exchange (NSE).

Company data

15.5 19.7

28.3 31.0

36.8

2.6 3.6 4.1 3.2 5.8

-0.5

0.6 0.7

-0.4

0.5

2008 2009 2010 2011 2012

Gross Turnover Gross profit Net profit

2008 2009 2010 2011 2012

Gross profit

margin,% 19 20 16 12 17

Export sales/net

sales 49 47 48 53 48

Debt-equity ratio 3.49 3.40 3.61 3.51 3.17

EPS -2.64 2.54 3.02 -1.59 1.60

Turnover per share 69.56 88.83 126.87 112.32 119.63

Fixed Assets

(INR bn) 21.03 23.39 25.83 33.32 34.06



Source:

Trident - Yarn

Production (thou tonnes)

Sales mix

Revenue and profit (INR bn)

Comments

Company data

As of March 2013, Trident had about 366,000 spindles and

3,600 rotors. The company’s capacity was 6,825 tonnes of yarn

processed per annum and 8,400 tonnes of cotton and blended

yarns per month.

The company is currently operating at peak capacity utilisation

rates.

Trident plans to expand its unit in Budni, Madhya Pradesh by

adding about 38,800 tonnes per annum of cotton yarn to its

capacity by September 2015.

90% 83%

73% 74% 73% 67%

10% 17%

27% 26% 27% 33%

FY9 FY10 FY11 FY12 FY13 H1 FY14

Domestic Export

28 35

44 40

65

33

12 13 17

20 20

9


Production Captive

4.6 6.2

11.3 11.7

16.8

9.6

0.1 0.4 1.3

-0.1

1.3 1.5


Revenue EBIT



Source:

Trident – Home Textiles

Production (thou tonnes)

Sales mix

Revenue and profit (INR bn)

Comments

Company data

As of March 2013, Trident had 388 looms.

The company produced 43,200 tonnes of towels per year or

14.5mn pieces per month.

28 29 32 31 31

14

28 30

32 30 31

14


Production Sales

7.6 8.5

11.1

1.7

12.7

6.8

-0.1

1.5 0.9 1.3 1.2 0.8


Revenue EBIT

92% 92% 91% 84% 85% 87%

8% 8% 9% 16% 15% 13%


Domestic Export



Highlights

Source:

Shri Lakshmi Cotsyn

Financial Results (INR bn)

Investment plans

Established in 1988, Shri Lakshmi Cotsyn Ltd operates in two diverse industries – textiles and defence solutions. The core competence is in the home textiles production, but the company also has a leading market position in the manufacturing and supply of technical and safety textiles and fabricated items for the defence sector.

The production process is conducted in eight manufacturing facilities in Malwan, Aung, Abhaypur, Rewari Bujurg, Rhasupur, Noida (Uttar Pradesh), Roorkee (Uttarakhand) and Sonepat (Haryana).

In 2011, the company expanded its backward integration, installing 35,000 spindles and 5,000 rotors. The expansion investment for different products amounted to over INR 14bn in 2008-2012.

Despite the capacity expansion, Shri Lakshmi assesses the 2012-2013 year as tough, due to non-release of TUF subsidy (INR 1.65bn) and unanticipated delay in the release of project funding. As a result, the liquidity position of the company suffered and a restructuring of its debt under the Corporate Debt Restructuring mechanism was requested.

Shri Lakshmi’s shares could be traded at the Bombay Stock exchange (BSE), the National Stock Exchange (NSE) and U.P. Stock Exchange.

Company data

1.7 2.1 2.7

4.5

0.9 0.6 0.9 1.0 1.1

-4.2

2008 2009 2010 2011 2012

EBITDA Net Profit

Shri Lakshmi has set up a spinning project at Malwan, Gujarat and

started commercial operations, however to make the plant fully

operational it requires additional investment of INR 120mn.

The company is currently buying yarn which is the raw material for

textile from the open market. The market price for the yarn is very

volatile and it affects negatively the company’s margin. As the new

plant will act as a backward integration for Shri Lakshmi, it will help

save around INR 240mn per annum, which will add to the company’s

EBIDTA margin.



Source:

Shri Lakshmi Cotsyn (cont’d)

Sales (INR bn)

Revenue structure (%)

Production

Company data

2011 2012

Suiting/Shirting mn metres 26.4 32.8

Technical Textiles mn metres 0.0 0.0

Technical textiles fabric mn metres 13.0 10.4

Fusible interlining fabric mn metres 17.6 17.0

NBC fabric mn metres 1.2 1.5

Black out fabric mn metres 10.0 1.4

IRR/MSCN fabric mn metres - 3.2

Others mn metres 11.8 -

Quilt Fabric mn metres 0.4 0.2

Embroydery Fabrics mn metres 0.3 0.3

Terry Towel mn tonnes 13.7 15.7

Sheeting mn metres 26.5 15.5

Denim mn metres 34.1 32.0

Garments mn 0.3 0.7

Quilts/Comforters mn 0.1 0.0

18.6

%

17.5

%

20.3

%

10.3

%

10.6

%

5.0%

3.7%

0.9%

13.2

% 22

.7%

15.9

%

14.8

%

12.1

%

9.5%

9.2%

3.0%

1.5%

11.3

%

Tec

hnic

al te

xtile

fabr

ic Den

im

Ter

ry to

wel

Shi

rtin

g

Hom

e fu

rnis

hing

Fus

ible

inte

rling

Bot

tom

wei

ght

Gar

men

ts

Oth

ers

2011 2012

0.9 0.9 1.0 2.3 2.0 2.8

9.3 11.6

15.4 18.0

24.0

19.2

2007 2008 2009 2010 2011 2012

Export sales Net sales



Contact:

Corporate Headquarters

Nestor House

Playhouse Yard

London EC4V 5EX

UK

Voice: +44 207 779 8471

Fax: +44 207 779 8224

Americas Headquarters

225 Park Avenue South

New York, New York 10003

US

Voice: +1 212 610 2900

Fax: +1 212 610 2950

Asia Headquarters

Eucharistic Congress Bldg. No.

III

4th Floor, 5 Convent Street

Mumbai 400 001

India

Voice: +91 22 22881123

Fax: +91 22 22881137

Disclaimer:

The material is based on sources which we believe are reliable, but no warranty, either expressed or implied, is provided in relation to the accuracy or completeness

of the information. The views expressed are our best judgment as of the date of issue and are subject to change without notice. EMIS and Euromoney Institutional

Investor PLC take no responsibility for decisions made on the basis of these opinions.

Any redistribution of this information is strictly prohibited. Copyright © 2014 EMIS, all rights reserved. A Euromoney Institutional Investor company.

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