Textile plays a major role in the Indian economy
(i) It contributes 14 percent to industrial production and 4 per cent to GDP
(ii) With over 45 million people, the industry is one of the largest sources of employment generation in the country;
The industry accounts for nearly 15% of total exports. Around 200 Listed Companies and some like Arvind & Indian Rayon were once in Nifty-50, today none of the companies from this industry are in Nifty-50 as 2 decades back this industry was responsible for 5% of Nifty weightage, today Zero. Many other Emerging Industries took their place.
This Industry is divided in 3 Parts: 1) Spinning 2) Yarn 3) Garments
Total Global Market is worth around 65 Lakh Cr and growing by 4.5% CAGR majorly in Developing Countries due to Rising Income Levels.
Major Share from Unorganized industries. From 200 Listed Sales as well as Market capital is just around 1 Lakh Cr. Majority of them are with high debt burden and in-consistent Profits.
VTL, KPRMILL & GarwallRopes are some good companies with consistent Profits from this sector.