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