Apparel Online India Magazine May 1-15, 2019 | Page 24

TEX-FILE Hits and Misses of Textile Conglomerates in FY ’19 It has been a stellar financial year for some Indian textile companies, while being a very challenging one for many others. Biggies such as Arvind Mills, Raymond, Vardhman Textiles and Grasim Industries have yielded a positive outlook for fiscal 2019, despite challenging global business environment. These companies, which are into the production of yarn and fabrics besides production and export of garments, have also recorded a higher growth in revenues along the integrated chain. On the other hand, companies like Morarjee Textiles, Bombay Rayon Fashions, Mafatlal and JCT slipped into the red and their quarterly revenues missed the estimates. Although these companies are optimistic, they believe that increased penetration of organised retail, favourable demographics and rising income levels are likely to drive demand for textiles this year. Dwelling deeper into the performance of five public limited textile companies, Apparel Online found that businesses which are proactive to the changing time and have strong strategies in place are not only seeing top-line growth but also have healthy bottom line. Raymond expanding offerings to stay relevant It was a robust FY ’19 for India’s largest textile and global conglomerate Raymond, excluding the Q4 result, which is pending. Still the company is expecting the Q4 demand momentum to remain intact in the textile, shirting and apparel segments on extension of the wedding season and ‘end of season sale’ schemes. Its Q3 revenue from the textile segment stood at Rs. 847.7 crore, up by 10.3 per cent from Rs. 768.4 crore earlier. The company’s Q2 revenue from branded textiles stood at Rs. 884 crore, higher by 15 per cent over the previous year led by 14 per cent growth in the suiting business and 17 per cent in the shirting business. The segment sales for the quarter ended June 30, 2018 was Rs. 589 crore, higher by 3 per cent over previous year. However, excluding GST impact, it was up by 7 per cent, led by 23 per cent growth in the shirting business and 3 per cent in the suiting business driven by channel expansion and 24 Apparel Online India | MAY 1-15, 2019 | www.apparelresources.com exports growth. Raymond CMD Gautam Hari Singhania said, “The initiatives that we have undertaken in the recent past are yielding strong results, and with seasonally strong quarters. coming in, we are confident to continue with the growth trajectory, enhancing value for all our stakeholders.” Embarking on a large expansion strategy, it has teamed up with Reliance Industries to launch the eco- friendly range of fabrics, Ecovera, which will be manufactured using R|Elan, a technology from Reliance. Arvind restructuring of businesses is supporting growth In November 2018, the Ahmedabad- based textile manufacturer Arvind Mills got demerged into three separate entities, where the textile businesses including the denims, fabric and garments segment, along with the advanced material business, remained with Arvind. The company reported negative