Indian Home Textile Industry: Weaving Success – expected to grow by 8-10% in FY25 by CareEdge Ratings
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Synopsis
• The global home textile industry, valued at USD 122 billion in CY2023, is envisaged to reach USD 134 billion by the end of CY2024, and thereafter expected to grow at a CAGR of 5-5.5% to around USD 185 billion by 2030. China leads in home textile exports, followed by India and Turkey, with the USA being the largest importer for home textile products.
• The Indian Home Textile industry’s revenue (considering 6 listed Indian home textile companies which hold nearly 65% of domestic market share) is envisaged to grow by approximately 8 to 10% in FY25 while operating margins (PBILDT) are expected to remain in the range of 14-15%. Growth drivers such as rising per capita income, rapid urbanization, and an expanding real estate sector, along with heightened awareness of hygiene and shifting consumer preferences, are expected to contribute to revenue growth in FY25. Following the setbacks of FY23, the industry is now on a recovery path as seen in FY24
. • Given the healthy performance of the major home textile players and their plans for capacity expansion, the credit profile of Indian home textile companies is expected to remain robust, supported by strong balance sheets.
Global Home Textile Industry The global home textile industry was valued at USD 122 billion in CY2023 and is projected to reach USD 134 billion by the end of 2024, representing 7-8% of the overall textile industry. This sector is expected to grow at a CAGR of 5-5.5% up to 2030. China has solidified its position as the leading exporter with approximately USD 23 billion in exports in 2023, followed by India with USD 5.7 billion and Turkey in the third place with USD 4.2 billion of exports. During the COVID-19 pandemic, India’s exports surged to USD 7.1 billion due to sudden increase in demand from the US and Europe, driven by heightened hygiene concerns, enhanced stocking by retailers to guard against any supply disruptions due to the pandemic and the China+1 strategy.
Above views are of the author and not of the website kindly read disclaimer
