What it takes to be India’s top textile company?
Textile industry plays a very important role in spinning the economyâ€™s growth wheels by being the second largest employment generator (after agriculture) and accounting for seven per cent of industrial output in value terms, 12 per cent of the countryâ€™s export earnings and two per cent of Indiaâ€™s GDP.
Textile industry plays a very important role in spinning the economyâ€™s growth wheels by being the second largest employment generator (after agriculture) and accounting for seven per cent of industrial output in value terms, 12 per cent of the countryâ€™s export earnings and two per cent of Indiaâ€™s GDP. When coronavirus struck India last year, the textile industry was among the hardest-hit sectors. During these trying times, The Indian Textile Journal stood with the industry as a partner and provided a platform to raise its grievances and offer practical solutions for the problems through video interviews of opinion makers, webinars and in-depth industry articles on our website www.indiantextilejournal.com.
The Government of India also realises the importance of this key industry and has taken some major policy decisions, like PLI Scheme for textile as part of Aatmanirbhar Abhiyan, last year to give a boost to the industry. Even in the budget 2021-22, the government announced the launch of Mega Investment Textiles Park (MITRA) scheme, wherein, seven textile parks will be established over the course of 3 years to increase Indiaâ€™s competitiveness in the global market, attract large investments and boost employment generation. As mentioned by experts, during the Indian Textile Journalâ€™s Business E-conference 2021, the budget aims to aid the textile industry by removing anomalies in customs duties of some of the key raw materials.
Though growth in 2020 was hard to come by, some companies proved to be outliers by performing better than the best. As a tribute to their performance, ITJ, for the first time in the Indian textile publication space, presents Indiaâ€™s Top 50 Textile Companies in its Annual 2021 edition. The companies are ranked using systematic and unbiased processes based on their financials (revenues and profits) and investorsâ€™ confidence (ie, growth in market capitalisation during the calendar year 2020). Companies are ranked in two groups (categories) – one group comprises companies having market capitalisation of above Rs 5 billion (known as â€œLargeâ€ category) and other group containing companies having market cap below Rs 5 billion (known as â€œSmallâ€ category).
Though the future for the Indian textiles industry looks promising, buoyed by strong domestic consumption as well as export demand, the industry in the current scenario is going through turbulence. Increasing debt burdens, rapidly changing technology, shrinking margins and most importantly competition arising from few other countries (in exports market) are few of the issues faced by the Indian textile sector as whole. While few of the players were grounded due to such challenges, a few really managed to overcome the challenges shining bright. ITJ Annual 2021 is an effort to find out such winners. In selecting the winners, all the key parameters like revenues, profits and market capitalisation were given equal weightage and the final ranking is based on the cumulative result.
In addition, a host of industry leaders share their views in ITJ Annual 2021 on how India can become an alternative to China for buyers worldwide in the global textile supply chain.