G Balachandar | Chennai, June 13 |
Overall sales have seen an 18 per cent y-o-y growth since FY20
The Indian textile industry has recorded significant growth in sales and EBITDA in FY22 over pre-Covid levels, according to the latest Wazir Textile Index, which is based on a detailed financial analysis of the top ten textile companies, compiled by Wazir Advisors, a management consulting firm.
In FY22, overall sales have seen an 18 per cent y-o-y growth since FY20. The overall EBITDA in FY22 improved significantly by 85 per cent when compared with the one reported in FY20. Raw material costs and manpower costs have seen a rise of 36 per cent and 19 per cent when compared to FY20 levels.
Vardhman Textiles posted the highest sales (standalone operating income) at ₹9,277 crore in FY22 (₹5,956 crore in FY21), followed by Arvind, which recorded sales of ₹7,460 crore (₹4,529 crore in FY21). Trident occupied the third position with sales of ₹6,944 crore (₹4,519 crore). Welspun India, which recorded the highest sales in FY21 moved to fourth position with sales of ₹6,703 crore (₹5,956 crore). KPR Mills and Indorama took the fifth and sixth positions with sales close to ₹4,000 crore in FY22, it said.
In terms of EBITDA margin, KPR Mills reported the highest margin at 25 per cent in FY22, up from 23 per cent in FY21, followed by Vardhman at 24 per cent (up from 13 per cent ), Trident at 22 per cent (18 per cent ) and Nagar Spinning Mills at 22 per cent(9 per cent). Welspun reported a decline to 13 per cent in FY22 from 18 per cent in FY21. Arvind’s margin was flat at 10 per cent.
Average IIP (index of industrial production) for textiles has increased by 32% in FY22 over FY21 and for the Apparel has increased by 29% in the same period.
India’s textile and apparel exports have grown at a CAGR of 13 per cent during FY20-FY22 and stood at $43.4 billion in FY22. Fibre witnessed the highest export growth rate of 46 per cent (at $4 billion in FY22), followed by yarn with a growth rate of 36 per cent ($6.5 billion). Home textiles grew by 16 per cent (at $7.1 billion), while apparel recorded a marginal growth of 2 per cent and stood at $16 billion.
In FY22, exports of fibre have been on the higher side due to the increase in cotton exports amid the US’ ban on the purchase of cotton products from Xinjiang, China. The share of India’s exports to Bangladesh has increased from 7 per cent in FY21 to 12 per cent in FY22. The US and European Union are the largest export markets with a value share of 26 per cent and 15 per cent respectively, the report said.
The overall textile and apparel imports have also grown since FY20. Filament yarn has witnessed a maximum increase at a CAGR of 26 per cent since FY20. On the contrary, imports of fibre and home textiles have witnessed a decline in FY22.
China continues to be the largest import partner for India with a share of 41 per cent in FY22 which has decreased by 2.0 percentage points when compared to FY21.