In the first 6 months of the current fiscal, India’s overall textile and apparel (T&A) exports have witnessed a decline of 9 per cent. Meanwhile, the overall T&A imports have increased significantly by 20 per cent, amongst which fibre imports have increased by 61 per cent.
Wazir Advisors, a leading consultancy firm, shared this in its half yearly update for the financial year 2019-20.
As per this textile sector performance update, compared to H1 of FY ’19, there has been an increase in overall sales and EBITDA margins by 1 per cent each for the top 10 listed textile and apparel companies.
The employee cost index and raw material cost index have also increased by 7 per cent and 2 per cent, respectively. Out of the top 10 companies – Arvind, Raymond, Vardhman, Welspun India, Trident, RSWM, KPR Mills, Sutlej, Filatex and Nahar Spinning – sale of 5 companies went up.
On the other hand, average index of industrial production (IIP) for apparels increased significantly by 11 per cent in H1 of FY ’20 as compared to H1 of FY ’19, while that of textiles showed a decrease of 2 per cent.
The average wholesale price index (WPI) for textiles increased by 2 per cent in H1 of FY ’20 as compared to H1 of FY ’19, while that of apparels decreased by 1 per cent.
Only fabric and apparel’s export increased 5 per cent and 2 per cent, respectively, in H1 while fibre, filament, yarn, home textile and other categories were down.
The exports of fibre and yarn have shown a significant decline of 52 per cent and 35 per cent, respectively.
It’s noteworthy that EU and US are the largest markets for India’s textile and clothing products accounting for 50 per cent of the market share. The share of US has increased by 2 per cent in H1 of FY ’20 as compared to that in H1 of FY ’19, while that of China has declined by 3 per cent.
