Textiles manufacturer Arvind Ltd on Monday reported a 7.32 per cent rise in consolidated net profit at Rs 104.42 crore in the fourth quarter ended March 31, 2024.

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The company had posted a net profit of Rs 97.3 crore in the same quarter of the previous fiscal, Arvind Ltd said in a regulatory filing.

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Consolidated revenue from operations during the quarter under review stood at Rs 2,074.51 crore as against Rs 1,880.76 crore in the corresponding period a year ago, it added.

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The board of directors has recommended a final dividend of Rs 3.75 per equity share and a one-time special dividend of Re 1 per equity share, totalling a dividend of Rs 4.75 per equity share of face value of Rs 10 each for the financial year ended March 31, 2024, subject shareholders' approval in the ensuing annual general meeting, it added.

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For the fiscal ended March 31, 2024 net profit was at Rs 352.63 crore as compared to Rs 413.17 crore in FY23, the filing said.

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Consolidated revenue from operations in FY24 stood at Rs 7,737.75 crore as against Rs 8,382.48 crore in FY23, it added.

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Arvind Ltd said its board has also approved a change in the designation of Sanjay Lalbhai as 'Chairman' from 'Chairman and Managing Director', while Punit Lalbhai will be redesignated as Vice Chairman from the earlier 'Vice Chairman and Executive Director'.

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Moreover, Kulin Lalbhai will be designated as 'Vice Chairman' from 'Executive Director' earlier.

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The company further said the board has approved the appointment of Susheel Kaul as its Managing Director, designated as 'Managing Director & President (Textiles)' with effect from May 6, 2024.

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Jayesh Shah has been re-appointed as Whole time Director designated as 'Director & Group Chief Financial Officer', it added.

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The company's board also approved the transfer of its advanced materials undertaking as a going concern on a slump sale basis to Arvind Advanced Materials Ltd, a wholly owned subsidiary, for a lump sum net cash consideration of Rs 90.36 crore, the filing said.

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The textile backward linkage factories are facing the two most hectic challenges, such as dealing with the increased cost of utilities and energy shortages while also meeting buyers' demands for reduced CO2 emissions. The low-temperature dyeing methods that minimize liquor ratios, shorten dyeing times, and maximize steam utilization are needed to address all of these issues.

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The textile dyeing process stands out as a significant contributor to the carbon footprint of the textile & apparel industry. Dyeing fabric is a demanding process that uses a lot of energy and water. Just to colour 1 kilogram of grey fabric, it takes 2-3 kilograms of steam every hour. Typically, dyeing requires high temperatures for a long time, leading to a large amount of steam being produced from fossil fuels, which releases CO2 into the air.

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Hence, the textile industry uses a lot of energy, which makes it costly to run. Energy alone can make up about 20% to 30% of all the money spent on making things, coming right after the cost of the materials used. Recently, gas prices have shot up, making things even tougher for Bangladeshi textile factories. Their gas bills have tripled, and on top of that, other fuels like diesel have gotten more expensive too, shrinking the amount of money they make. With labour costs also going up, factories have no choice but to find ways to spend less money.

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Moreover, the low pressure of gas causes the industry to production loss and reprocessing of dyed fabric. According to the report of Bangladesh Textile Mills Association (BTMA),

“The country’s export-oriented textile sector has incurred production loss worth $1.75 billion owing to the lack of enough natural gas supply to the factories”

During this time when energy is scarce, clothing brands are telling factories to emit less CO2. The textile industry is estimated to be responsible for a staggering 10% of global emissions, making it the second largest polluter after oil, and the dyeing process stands as a significant contributor. The buyers are committed to reducing carbon emissions; they're closely watching how much CO2 factories let out. 

Mohammad Reaz Uddin, a senior manager at HAMS Garments, says, “Brands are really pushing factories to emit less CO2. For example, H&M wants to cut their greenhouse gas emissions by a big amount—56% less by 2030 compared to 2019. And by 2040, they want to have zero CO2 emissions. This means they want to reduce emissions by 90% and use methods to take carbon out of the air. Other brands are also trying to emit less CO2. So, it's really important for our industry to do better because brands will keep pushing us.”

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Nazrul Amin, another senior manager at HAMS Garments, says that by using a low-temperature dyeing method, we can save a lot of money and emit less CO2. This method is especially helpful for knit dyeing, which usually needs high temperatures.

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Since the dyeing process uses a lot of energy and water, which adds to the industry's carbon footprint, if we start using low-temperature dyeing techniques, we can emit less CO2 and spend less on utilities by using less steam, making a big difference in reducing our industry's carbon footprint and making the world a cleaner, greener place.

Discalimer: this information has been collected through secondary research and posted by third party therefor textilemarket. In is not responsible for any errors in the same. '  ' '   

Indian textile sector is expected to attract ₹95,000 crore investments in the next four-six years from two schemes – the production-linked incentive (PLI) to the sector, and the proposed seven PM Mega Integrated Textile Regions and Apparel (PM MITRA) parks and generate over 2.25 million additional jobs, a senior official said.

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“While the seven PM Mega Integrated Textile Regions and Apparel (PM MITRA) parks are expected to attract ₹70,000 crore in four-six years with 20 lakh direct and indirect employments, the PLI scheme is likely to attract investments worth ₹25,000 crore with 2.5 lakh additional jobs,” textiles secretary Rachna Shah said on Friday.

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Shah said 64 PLI proposals have been already approved and other 12 applications are under evaluation. Performance of units will be evaluated soon after gestation period is over on March 31, 2024, she added. According to the scheme, the government will start giving incentives from 2025-26. “In case of fast paced investment when threshold investment and threshold turnover is achieved by 2023-24, incentive may be payable in 2024-25 itself,” the scheme document said.

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The PLI scheme for textiles sector is focused on man-made fibre (MMF) , MMF apparel and technical textiles to boost large scale manufacturing and enhancing competitiveness. Launched in September 2021, the ₹10,683 crore PLI scheme for textiles sector is expected to result into a cumulative turnover of over ₹3 lakh crore. It is part of the ₹1.97 lakh crore PLI schemes for 14 sectors including automobile, pharmaceuticals, telecom, steel, white goods and solar modules.

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The other scheme -- the ₹4,445 crore PM MITRA parks -- was notified by the government in October 2021. They are aimed at creating a modern, integrated large-scale, world class industrial ecosystem that will help in attracting investments and boosting employment, she said. The seven sites are Virudhnagar in Tamil Nadu, Warangal in Telangana, Navsari in Gujarat, Kalaburagi in Karnataka, Dhar in Madhya Pradesh, Lucknow in Uttar Pradesh, and Amravati Maharashtra. It is estimated that each park will attract investment worth ₹10,000 crore from both foreign and domestic investors.

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Shah said the government is taking several such policy measures to boost textile industry with the aim to make it $350 billion sector by 2030 from the current level of $154 billion. “One such effort is Bharat Tex, which is set to be the largest global textile event of India. The four-day event is beginning from Monday in New Delhi, which will be inaugurated by Prime Minister Narendra Modi.”

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“Besides China, India is the only country to have the entire textile value chain (from fibre to fabric and apparel), and Bharat Tex will project this strength before an international audience. This will showcase the entire strength of the textile ecosystem which is very unique to India,” she said. Bharat Tex will have participation from 100 countries and more than 3,000 trade buyers, she added.

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Investment of Rs. 500 Crores to Boost Production Capacity

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Sangam India Limited, a leading textile manufacturer, has announced a strategic investment of Rs. 500 crores to expand its production capacity in yarn and synthetic fabric. Dr. S. N. Modani, Managing Director & CEO of Sangam India Limited, shares insights into the company’s ambitious growth plans and its vision for the future.

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Dr. S. N. Modani, Managing Director & CEO of Sangam India Limited

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Expansion Plans

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Dr. Modani explains, “Out of the total investment, Rs. 344 crores will be allocated to spinning and yarn manufacturing, while Rs. 160 crores will be directed towards synthetic fabric manufacturing. Currently, Sangam has a spinning capacity of 297,744 spindles, which will be increased to 306,864 spindles. The number of rotors will grow from 2,664 to 5,064, and knitting capacity will expand from 26 to 32 machines. Post-expansion, the spinning capacity will rise from 103,140 MTPA to 112,440 MTPA. The yarn project is expected to be completed by early FY26.“

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Furthermore, Dr. Modani highlights the expansion in synthetic fabric weaving capacity: “Sangam’s synthetic fabric weaving capacity will increase from 562 to 642 machines. Upon completion, the weaving capacity will grow from 48 MMPA to 65 MMPA. This project is slated for completion by the end of FY25.”

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Legacy of Quality and Innovation

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Established in 1984, Sangam India Ltd. has consistently been at the forefront of the textile industry. “We are one of the foremost producers in PV dyed yarn, cotton, and OE yarn, as well as ready-to-stitch fabric. Our seamless garment manufacturing facility further underscores our commitment to innovation and quality,” says Dr. Modani. “Sangam is strategically positioned as a premier textile manufacturer, recognized for exceptional quality and diverse product offerings. Our strategic focus has always been on providing tailored solutions to meet the distinct needs of our customers.“

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Sangam’s vertical integration, from yarn to fabric and garments, allows it to maintain stringent quality control and meet demanding customer specifications. “Having complete control over the production process enables us to deliver the highest quality products and ensure timely deliveries,” Dr. Modani adds.

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Moving Up the Value Chain

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As part of its growth strategy, Sangam is increasingly focusing on value-added products. “We have been moving up the value chain and increasing the proportion of fabric and garments in our product mix. Currently, 53% of our product mix comprises value-added products. Going forward, we are committed to increasing this further,” Dr. Modani states.

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With its significant investment in expanding production capacity and a strong focus on innovation and quality, Sangam India Limited is well-positioned to achieve its ambitious target of Rs. 4000 crores turnover by 2026. Dr. Modani concludes, “We are excited about the future and confident in our ability to meet the evolving demands of our customers. Our commitment to excellence and sustainable growth will continue to drive our success in the textile industry.“

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 The Lenzing Group, world leading provider of wood-based specialty fibers, hosted the 'The Lenzing Conclave' in Ahmedabad. Renowned as a significant textile base with some of the leading fabric mills and traders, Ahmedabad has been a stronghold for Lenzing fibers, extensively utilized across various applications for several years now.

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The conclave served as a pivotal platform for industry stakeholders in Ahmedabad to convene and exchange ideas on new developments and future opportunities with sustainable textiles, showcasing Lenzing's enduring commitment to innovation & responsible manufacturing. Guests engaged with Lenzing's commercial and technical teams to explore the latest industry innovations under TENCEL and LENZING ECOVERO fiber brands, including the recently launched LENZING ECOVERO black fibers. There was a good focus on developing products which are a blend of TENCEL fibers and cotton, suitable for Indian domestic consumption.

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Ahmedabad's fabric mills and traders, long-standing consumers of Lenzing fibers, have played a vital role in shaping end fabrics with applications spanning fashion, denim, home textiles, and intimate wear products. These fabrics, made from Lenzing fibers, have gained prominence in both export markets and domestic retail. The conclave delved into global fiber and material consumption trends, providing insights into the anticipated changes in the immediate future. Attendees gained valuable perspectives on the evolving landscape of the textile industry and the role sustainable practices play in shaping its future.

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The exhibition at the conclave featured an extensive display of Lenzing's latest innovations across major segments, including denim, home linens, intimate & loungewear, general outerwear, and traditional wear. This hands-on experience allowed participants to explore the versatility and quality of Lenzing fibers, reinforcing their position as industry leaders.

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Talking about the event, Avinash Mane – senior commercial director of AMEA & NEA region, Textiles Business, Lenzing Group, said, “The Lenzing Conclave in Ahmedabad has been a great success, bringing together our key partners from mills and fabric trading in this vital textile hub. It was good to see an increasing number of new partners joining us to collaborate on new innovations. Our commitment to value driven sustainability and innovation is reflected in the showcased products and discussions on global trends. We are proud to be a trusted partner for Ahmedabad's textile industry, contributing to the creation of high-quality, sustainable fabrics for both local and global markets."

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PM MITRA <br/>

The government has launched PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks Scheme to develop world class infrastructure including plug and play facility with an outlay of ₹4,445 crore for a period up to 2027-28. PM MITRA Parks Scheme are inspired by the 5F vision of Prime Minister—Farm to Fibre to Factory to Fashion to Foreign. Nearly ₹70,000 crore investment and 20 lakhs employment generation is envisaged. Parks will offer an opportunity to create an integrated textiles value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at a single location. World-class industrial infrastructure would attract cutting edge technology and boost FDI and local investment in the sector. Centre and states to form SPVs for setting up PM MITRA Parks. These parks will be developed in PPP mode.

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National Technical Textile Mission (NTTM) <br/>

The government has launched a National Technical Textiles Mission (NTTM) with an outlay of ₹1,480 crore. The key pillars of NTTM include ‘Research Innovation & Development’, ‘Promotion and Market Development’, ‘Education, Training and Skilling’ and ‘Export Promotion’. The focus of the Mission is for developing usage of technical textiles in various flagship missions, programmes of the country including strategic sectors. The mission got its extension until March 31, 2026, with a subsequent sunset clause applicable until March 31, 2028. Achievement as on date is 126 projects of value ₹371 crore have been approved in the category of Specialty fibres and technical textiles. Guidelines to support indigenous development of high-end machinery, equipment, tools and testing equipment for technical textiles in India and establish indigenous platform for domestic design, development and manufacturing has been launched. Guidelines to support startups and young scientists in the application areas of technical textiles have been approved in Empowered Programme Committee (EPC).

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Amended Technology Upgradation Fund Scheme (ATUFS)  <br/>

Under ATUFS, ratio of MSME: Non MSME is 89:11, while under previous versions of TUFS it was 30:70. Higher incentives of 15 per cent (₹30 crore) for entities for employment potential segments viz. technical textiles and garment/made ups. Employment support to more than 17 lakhs (3.9 lakh new and 13.4 lakhs existing) over seven years. Out of total 3.9 lakhs new employment generated, 1.12 lakh (29 pr cent) are women.

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Discalimer: this information has been collected through secondary research and posted by third party therefor textilemarket. In is not responsible for any errors in the same. '