The Indian Textile and Ready to Wear Industry - Tailoring Hues of Expectations

While taking a stroll few months back , I noticed a banner “ loot hi loot " dangling outside a textile cloth merchant shop , clearly reflecting the plight of the stocks from the textile industry .I ventured inside and picked up few trouser lengths . The hunt for the Tailor landed me at the shop from which during my schooldays; I used to get the trousers stitched . To my utter surprise , I saw traditional indian women wear hanging outside his shop .We both could place each other ,he blurted out that in the times of ready to wear they are only left to do is alteration work , thus he diversified into the women wear .I quite apprehensively gave him my symbol of support for the industry . He delivered a masterpiece .Similarly ,when the size of the Indian Textile and ready to wear industry is shrinking due to the global economic meltdown ; the industry is looking forward to a stimulus package in this budget constituting of favouring policies like better infrastructure, cheaper loan and interest rates , strengthening of technology up gradation fund , reduction of customs ,excise duties , protection from forex losses etc, ; that can not only assist the vibrant Manchester of india regain its slowly loosing sheen but could also revive the industry . The textile and ready to wear industry plays a vital role in the Indian economy .

Indian textile and ready to wear industry contributes 4 percent to the GDP. It offers livelihood to an estimated 35-40 million people ,in addition there are millions employed in the allied industries , thus making it second largest employer after agriculture . The activities encompass from production of raw materials like jute , cotton , silk to finished garments made of natural as well as man made fibres .Its share in international textile trade is close to 4-5percent . it is the largest producer and second-largest exporter of jute goods, the second-largest producer of silk ,the seventh-largest producer of wool .India is the third-largest cotton producer both in terms of bales produced and in metric tons, Indian Textile Industry contributes about 10 percent to industrial production, 14 per cent to the manufacturing sector, and makes sizeable contribution to the country's total export earnings. It has a total domestic market size of US $25-30 billion apart from export market worth to be close to USD 15-20 billon. It is expected that market should touch USD 100-110 billion with the return of buoyancy in the economy.

Few of the textile stocks that got weaved into an upward spiral in last few months in anticipation of government unveiling sops to revive the languishing sector

Name of the Company	52 week High /Low	CMP
Arvind Mills	44/11	31
Bombay Dyeing	782/110	372
Gokaldas Exports	226/43	121
Zodiac	455/148	311
SEL manufacturing	757/38	82
Raymonds Limited	238/68	163
Alok Industry	52/11	25
Welspun India	49/13	40

There are options galore in textile industry stocks , thus the above information focuses on why to buy than what to buy ,One can look at creating a bespoke textile portfolio keeping in view that the gradual improvement in domestic as well as international economy will reflect on this sector quite instantly.

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This blog should not be construed as investment advice, either on behalf of particular stocks or in regard to overall investment strategies. It is a site aimed at understanding competitive advantages and valuing businesses. The information provided here comes from publicly accessible sources, but errors in these sources and in transcription may occur. Any investment decisions you make should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.