Category: HOME TEXTILES
Country: India
Region: Asia
By Jennifer Marks
Editor in Chief
08th November, 2024
Mumbai – The home textile industry in India is poised for 6%-8% revenue growth in fiscal year 2025, according to a report released this week by CRISIL Ratings (formerly Credit Rating Information Services of India Limited).
The forecast is based on “resilient” demand from the U.S. market and expansion in the domestic market. That growth comes on top of a 9%-10% rebound in revenue during fiscal year 2024.
The report was released before the results of the U.S. presidential election were known, so did not factor in the potential impact of President-elect Donald Trump’s tariff policies.
CRISIL projection was based on analysis of 40 companies, accounting for 40-45% of the industry revenue. The full home textile industry in India generates 70%-75% of its home textiles revenue from exports, with the US accounting for 60% of the pie. CRISIL projects that India’s total share of home textiles exported to the U.S. is around 30%.
“Three factors will drive growth of the home textiles industry this fiscal,” said Mohit Makhija, senior director of CRISIL Ratings.
He cited:
Resilient consumer spending and normalized inventory levels at major retailers in the U.S.
The continued focus among manufactures on expanding their domestic business in India.
The likelihood that domestic prices of cotton will remain close to international levels, “resultantly retaining the competitiveness of domestic companies,” said Makhija.
As a caveat, the reported noted that a significant slowdown in the U.S. or a surge in domestic cotton prices compared with international prices could change the outlook. The report also acknowledged “lingering logistical challenges” for exports out of India.
Although international cotton prices dropped below domestic Indian prices between June and September this year thanks to a surge in supply from Brazil and the U.S., CRISIL expects the gap to narrow with the onset of India’s cotton season.`
Courtesy: Hometextilestoday.com
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