Textiles Sector: A Comprehensive Industry Analysis And Company Deep Dive

Small Summary

The Indian Textiles sector, a cornerstone of the nation's economy, is undergoing significant transformation, driven by increasing domestic consumption, a growing organized retail segment, and a strong push towards exports and technological integration. This analysis synthesizes data from three key players – Vardhman Textiles Limited (a large, vertically integrated yarn and fabric manufacturer), Saraswati Saree Depot Limited (a specialized B2B saree wholesaler expanding into retail), and Active Clothing Co. Limited (an integrated apparel manufacturer focused on knitwear and exports) – to provide an in-depth understanding of the industry's landscape, financial health, competitive dynamics, and future outlook. While the sector faces challenges such as margin pressures and capital intensity, strategic investments in sustainability, technology, and market diversification are paving the way for robust long-term growth. The industry is projected to reach US$350 billion by 2030, with exports targeting US$100 billion, underpinned by strong government support and evolving consumer preferences for quality, branded, and sustainable products.

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A. Industry Overview & Market Landscape

The Indian Textiles sector is a vast and complex ecosystem, playing a pivotal role in the country's economy. It is the world's second-largest textile producer and fifth-largest exporter, contributing approximately 2.3% to India's GDP, 13% to industrial production, and 10.5% to the nation's total exports. The sector's GDP contribution is anticipated to double to 5% by the end of the decade, reflecting its strategic importance and growth potential. The market for Indian textiles and apparel is projected to grow at a robust 10% CAGR, reaching an impressive US$350 billion by 2030, with exports expected to reach US$100 billion. The government has set an ambitious target of US$250 billion in textiles production and US$100 billion in exports over the next 5-6 years, indicating strong policy support for the sector.

Total Addressable Market Size And Growth Rates

The overall textile and apparel market in India is on a significant growth trajectory. Beyond the overarching US$350 billion target by 2030, several sub-segments demonstrate substantial market potential:

• Outerwear Jackets Market: Valued at USD 31.51 billion in 2024, it is projected to reach USD 53.76 billion by 2033, indicating a strong CAGR.
• Joggers and Sweatpants Market: This segment was valued at USD 87.16 billion in 2023 and is expected to grow to USD 131.92 billion by 2030.
• Circular Knit Fabric Market: Standing at USD 4.5 billion in 2022, it is projected to reach USD 7.2 billion by 2030.
• Sweaters Market: With a size of USD 12.8 billion in 2023, this market is forecast to expand to USD 19.6 billion by 2030.
• Flat-knit Sweaters Market: A larger segment, valued at USD 60 billion in 2022, it is projected to reach USD 85 billion by 2030.
• Readymade Garments Market: One data point suggests a market size of USD 4.5 billion in 2022, projected to reach USD 7.2 billion by 2030. Another, specific to India, shows a market size of US$36 billion in FY24, with a significant projection to US$100 billion by FY30. This indicates a substantial growth opportunity in the readymade apparel segment.
• Indian Knitting Industry: This segment is pegged at approximately $9.1 billion and is slated to reach about$21.5 billion by 2027, growing at a 9% CAGR.
• Saree Industry: This traditional segment, worth Rs. 558 billion in fiscal 2020, experienced a significant decline of approximately 43% in fiscal 2021 due to the pandemic. However, it rebounded strongly by approximately 44% in fiscal 2022. By fiscal 2024, it was valued at Rs. 515 billion, representing about 5% growth from the previous year. The long-term outlook projects the saree industry to grow at a 5-6% CAGR from fiscal 2024 to 2029, reaching Rs. 650-675 billion by fiscal 2029.

Market Structure And Segmentation

The textile industry is highly diversified, encompassing various stages of the value chain and catering to different market segments:

• Vertical Integration: Companies like Vardhman Textiles Limited exemplify vertical integration, being India's largest vertically integrated textile manufacturer and the largest producer of yarn. This structure allows for control over the entire production process, from raw material to finished product, offering efficiency and quality control advantages.
• Product Segmentation:
  • Yarn: Vardhman is a major player in yarn production, a foundational component of the textile industry.
  • Traditional Apparel (Sarees): Saraswati Saree Depot Limited specializes in sarees, which constitute over 90% of its revenue (H1 FY26). It also offers Kurtis & Dress Materials (7.0%), Blouse Pieces (1.3%), Shirt & Pant Pieces (0.8%), and Ot