Focus On The Amazing Growth Of India'S Textile And Clothing Exports

According to the latest Wazir textile index compiled by Wazir consultants for fiscal year 2022, the sales of Indian textile industry increased significantly in fiscal year 2022, both exceeding the level before the outbreak of new crown pneumonia. The index, based on an analysis of 10 companies, has grown 18% year-on-year since 2020. Welspun Textile Co., Ltd. of India had the highest sales volume of rs. 59.56 billion, followed by wademan Textile Co., Ltd., with a total sales volume of rs. 57.88 billion, and Arvind Co., Ltd., with a sales volume of rs. 45.19 billion.

The overall revenue of the textile industry increased by 85%

In fy2022, the total revenue of India's textile industry increased by 85% compared with that in fy2020. However, welspun's profit margin fell from 20% in fy2020 to 18% in fy2021 and 13% in fy2022. Waldman's profit margin fell from 13% in fy2021% in fy2020. However, it reached 23% in fy2022. The 10 selected companies increased their profit margins by 5.0 percentage points.

The cost of raw materials decreased by 2.0%

In fy2022, the average raw material cost of India's textile industry increased by 36% compared with that in fy2020, while the labor cost increased by 19%. In percentage terms, the cost of raw materials in fiscal year 2022 decreased by 2.0 percentage points compared with that in fiscal year 2020.

Welspun has the highest raw material cost

Raw material costs in fy2021 increased by 53% in fy2020, 49% in fy2020, and further increased by 58% in fy2022, the highest of all 10 companies to date. The second highest growth was wademan textiles, which increased costs by 54% in fy2021, up from 53% in fy2020. However, the index fell to 48% in fy2022.

Average staff costs are down 19%

Compared with fiscal year 2020, the average staff cost of the top ten enterprises in the industry increased by 19% in 2022. However, the average staff cost in fy2022 was 2.0 percentage points lower than that in fy2020. Average staff costs of Indian welding companies decreased from 10% in fy2020 to 9% in fy2021 and 8% in fy2022.

Waldman textile's staff costs increased from 9% in fy2021 to 10% in fy2021. However, it fell further to 7% in fy2022. Arvind's staff costs follow a similar pattern, rising to 13% in fy2021 compared with fy2020, but falling to 9% in fy2022.

Fourth quarter sales up 29% month on month

Consolidated sales of all 10 textile companies increased 29% quarter on quarter to rupees 142.55 billion. The average profit margin of these companies decreased by 1 percentage point to 6 percentage points in the fourth quarter of fiscal year 2022, compared with 5 percentage points in the third quarter of fiscal year 2022.

Fiber export dominates

India's textile and clothing exports increased by 13%, from US $34.222 billion in fy2020 to US $43.435 billion in fy2022. In fiscal year 2020, China's export of fiber increased from US $291.8 billion to US $20240 million. Subsequently, yarn exports increased by 36%, from US $3.501 billion in fy2020 to US $6.474 billion in fy2022. The United Arab Emirates accounted for the highest share of India's textile and clothing exports, at 36%, while its share of exports to Bangladesh increased by 7% this year.

26% of total yarn imports in fy2022

India's textile and clothing imports have grown steadily since 2020. Compared with fiscal year 2020, the import of filament yarn increased by 26%. China remains India's largest importer of fiber and yarn, but its market share is down 2.0 percentage points from 2021.