Maharaja Shree Umaid Mills Unlisted Shares Essentials

Introduction: 

• India’s textiles sector is one of the oldest industries in the Indian economy, dating back to several centuries.
• The industry is extremely varied, with hand-spun and hand-woven textiles sectors at one end of the spectrum, while the capital-intensive sophisticated mills sector on the other end. The decentralized power looms/ hosiery and knitting sector forms the largest component in the textiles sector.
• The close linkage of textiles industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles makes it unique in comparison to other industries in the country
• India’s textiles industry has a capacity to produce wide variety of products suitable for different market segments, both within India and across the world.

Market overview: 

• The Indian textile industry in FY20 had a market size of approx. INR 11 lakh Cr. and expected to grow at a rate of 6.6% till FY 2026.
• India’s textiles industry contributed 7.0% to the industry output (by value) in 2018-19. The Indian textiles and apparel industry contributed 2.0% to the GDP, 12.0% to export earnings and held 5% of the global trade in textiles and apparel in 2018-19.
• The share of the India’s textiles and apparel exports in mercantile shipments was 11.0% in 2019-20
• Textiles industry has around 4.5 Cr. employed workers including 35.22 lakh handloom workers across the country.
• Cotton production is expected to reach 3.6 Cr. bales and consumption is expected to reach 11 Cr. bales in FY21—13.0% growth over the previous year.
• The domestic textiles and apparel market stood at an estimated INR 7,20,000 Cr. in FY19.
• The production of raw cotton in India is estimated to have reached 3.5 Cr. bales in FY20. During FY19, production of fiber in India stood at 14.4 Lakh tons (MT) and reached 1.60 MT in FY20 (till January 2020), while that for yarn, the production stood at 476 Cr. kgs during same period.
• Exports of textiles (RMG of all textiles, cotton yarn/fabs./made-ups/handloom products, man-made yarn/fabs./made-ups, handicrafts excl. handmade carpets, carpets, jute mfg. including floor coverings) stood at INR 1,87,776 Cr, as of February 2021.

Government initiatives: 

• Indian government has come up with several export promotion policies for the textiles sector. It has also allowed 100% FDI in the sector under the automatic route.
• In March 2021 
• The Ministry of Textiles favored limited deal for the India-UK free trade agreement that could boost the garments sector
• Under the ongoing sub-mission on agroforestry (SMAF) scheme, the Ministry of Agriculture and Farmers Welfare signed a memorandum of understanding (MoU) with the Central Silk Board, under the Ministry of Textiles, on a convergence model to implement agroforestry in the silk sector. 
• Toys were identified as one of the 24 primary sectors listed under the self-reliant India initiative. The Department for Promotion of Industry and Internal Trade (DPIIT) has developed a ‘National Action Plan’ for toys that calls on several central ministries, including textiles, MSME, I&B, Education, DPIIT (under the Ministry of Commerce) and other departments, to nurture and promote the industry.
• Defense Research and Development Organization (DRDO) is helping the Indian textile industry to produce yarns and eliminate dependence on import of Chinese and other foreign clothing for military uniforms. 
• In October 2020, the Cabinet Committee on Economic Affairs chaired by Mr. Narendra Modi approved mandatory packaging of 100% food grains and 20.0% sugar in jute bags. Under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987, the government is required to consider and provide for the compulsory use of jute packaging materials for supply.
• Under Union Budget 2020-21, a National Technical Textiles Mission is proposed for a period from 2020-21 to 2023-24 at an estimated outlay of Rs. 1,480 Cr. 
• In FY2020, Cotton Corporation of India made a record procurement of 15 Cr. bales under MSP operations, which is 290.0% higher than 38.43 lakh bales procured during the corresponding period last year.