India’s home textile industry is expected to record a revenue growth of 6-8 per cent this fiscal, following a 9-10 per cent rebound during the last fiscal, stated a report by CRISIL Ratings. The growth, it added, will be driven by resilient demand from the US, which is the key export destination, and also the expansion in the domestic market – and notwithstanding some lingering logistical challenges.
CRISIL Ratings analysed 40 companies, accounting for 40-45 per cent of the industry revenue, to release the findings. It said that the credit profiles of home textile companies will remain stable, supported by healthy cash accrual and moderate capital expenditure (capex) plans on the back of deleveraged balance sheets.
The home textile industry derives 70-75 per cent of its revenue from exports, with the US alone accounting for 60 per cent, and the remaining 25-30 per cent from the domestic market.
Also Read Urban demand woes disrupt FMCG growth runway in Q2 Indian apparel exporters to report revenue growth of 9-11% in FY25, capex spends to increase too in FY25 and FY26 Navigating the New Era of Telecom: India’s Industry Transforms Amidst Policy Reforms and Digital Innovation Room air-conditioner industry to post sales volume growth of 20-25% in FY25 on climate and consumer trends, says ICRA
Also ReadUS seen to remain protectionist, regardless of electoral outcome
Mohit Makhija, Senior Director, CRISIL Ratings, said, “Three factors will drive growth of the home textiles industry this fiscal. One, resilient consumer spending and normalised inventory levels at major retailers in the US will spur exports, though container availability bears watching. Two, the industry’s continued focus on expanding domestic presence will aid growth. Third, the domestic prices of cotton, the key raw material, are likely to remain close to international levels, resultantly retaining the competitiveness of domestic companies. Therefore, for the home textiles exported by India, the country’s share in US imports will remain steady this fiscal — in January-August 2024, it was ~30 per cent, same as in calendar year 2023.”
International cotton prices had plummeted below the domestic prices between June and September 2024, driven by a surge in cotton supply from Brazil and the US. However,
» Read More
