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Textile: Beleaguered with risks?

Jun 29, 2007

In FY07, India's textile and apparel exports grew at a modest pace of 7.7% YoY to reach US$ 19 bn (nearly one-fifth of total exports). However, growth in the two key markets of the US and the EU at 9% and 15% YoY, respectively during 2006, was relatively stronger.

Textile: Offering value?

Apr 13, 2007

At a time when companies across sectors and sectors across industrial and service categories have generated much investor interest, causing their stock prices to multiply several times, the textile sector seems to be unduly derelict.

Identifying a textile stock: Do's and don'ts

Apr 9, 2007

In Views on News, Equitymaster has tried to highlight here some factors one should keep in mind before investing in an Textiles company. Know more

Textile: Is it different this time?

Sep 15, 2006

Indian textile companies, across product categories (apparels, denim, home textiles) are today seeking to build scale, extend their footprint and access global markets. While their attempts are not without several hiccups, there is certainly a sort of rejuvenation in the sector, which was once written off as an old economy debt-ridden sector. This was primarily so when most companies in the sector sought refuge in the BIFR in the late 90s. With the textile majors today once again talking of expa

Textiles: Head-on with China...

Aug 4, 2006

Besides population, GDP growth and infrastructure amenities, India today is competing head-on with China on other grounds as well. One of them being - targeting a larger share of the American and European consumers' wallets. With the uncertainty prevailing over the Chinese textile industry on account of the restriction on exports to the US and Europe, retailers and merchandisers in these countries are seeking to diversify their sourcing in order to avoid any sudden supply shocks. India has been

Textile: A sense of deja vu?

Jul 7, 2006

The bear carnage witnessed on the bourses over the last couple of months took a toll on all sectors alike - be it old or new economy stocks. Textile stocks have been witness to such market wrath more than once. In the previous interest rate hike-economic slowdown cycle (from late 1990s to early 2000s), it was this sector that was the worst affected, with most players being subject to the BIFR (Board of Industrial and Financial Reconstruction).

Textiles: Growth at 'home'!

May 12, 2006

The domestic textile industry is yet at the inflection point from where it needs to take off and capitalise on the export opportunities in the post quota regime. What however, has caught the 'apparel' players off guard is the fact that while they awaited for the quotas to get lifted, to embark on their capex plans, the cycles (like the denim cycle) have turned and new competitors have emerged. In such a scenario, their counterparts in the 'home textiles' segment seem to be better geared.

Indian textile industry: Porter analysis...

Mar 31, 2006

One of the worst hit sectors during the skyrocketing interest rate scenario in the late 90s and early 2000s.

Apparel industry: Can it give China a run?

Feb 24, 2006

Post the dismantling of the quota regime, the global apparel (readymade garment) industry has seen a gradual but steady shift of 'sourcing hubs' to the developing nations like India and China. The same was facilitated by circumstances that typically characterise developing nations. Firstly, the apparel industry is labour intensive - labour costs are cheap in developing nations and secondly, the industry requires very little capital investment - developing nations lag behind developed countries w

Indian Rayon: Consistency, an issue?

May 5, 2005

Indian Rayon is the Aditya Birla Group's most diversified conglomerate, with a turnover in excess of Rs. 17.1 bn. The company has a presence in key business segments, which include viscose filament yarn, carbon black, textiles and garments. The company has also made a foray into insurance, IT services and Business Process Outsourcing (BPO) fields. It has hived off its insulators business into a joint venture with Birla NGK Insulators Pvt Ltd.

Arvind Mills: Past and the future

Apr 25, 2005

Arvind Mills Limited is the flagship company of Rs 20 bn (US$ 550 m) of the Lalbhai Group. It enjoys the distinction of being the world's largest exporter and Asia's largest producer of Denim. Various brands owned by Arvind include Flying Machine, Newport and Ruf & Tuf in Jeans and Excalibur in shirts. Apart from these, the company has licenses from reputed International brands like Arrow, Lee, Wrangler and Tommy Hilfiger for the Indian market.

Arvind Mills: In the ‘jeans’

Jan 27, 2005

Arvind Mills, the country's largest denim manufacturer with a market share of nearly 72% in terms of volumes sold in the domestic market, has announced robust 3QFY05 results. While the topline has grown by a decent 19% YoY, the bottomline has improved by an impressive 89% YoY. Strong denim volumes and improved realizations have helped the company boost performance.

Indian textile: The next leap

Dec 27, 2004

In just few days from now, the textile sector is likely to enter a new phase. The quota-based restriction for textile exports with the US and Europe could be removed. In the existing quota system, Indian textile sector has not been able to realise its full potential on the exports front. But now, we will see Indian textile sector moving towards achieving its export target of US$ 50 bn by the year 2010. We take a look at the current standing of the textile sector on the exports front and what lie

Arvind Mills: Well stretched!

Dec 6, 2004

Textiles major, Arvind Mills, posted lackluster results for 2QFY05. Despite the topline registering a growth of 14.5% YoY, the bottomline witnessed a decline of 17% during the quarter. Both operating as well as net profit margins were lower as compared to the same period last year (down 220 and 180 basis points respectively).

Indian Rayon: Realization key concern

Nov 2, 2004

AV Birla Group Company, Indian Rayon, declared lackluster results for 2QFY05. While the topline of the company grew by only 9% YoY, the bottomline of the company declined by 56% on account of contraction of operating margins as well as extraordinary expenses. The operating margin declined by 370 basis points, while net profit margin declined by 8 percentage points.

Raymond: Tough times

Oct 25, 2004

Raymond India, one of the country's leading textile players, has reported subdued numbers for the second quarter ended September 30, 2004. While net sales are higher, owing to higher raw material costs (especially for its files division), operating margins have declined sharply. Lower other income has not helped matters either. We will have to revise our earnings estimates for FY05 downwards post the 1HFY05 results.

Textiles: In the reckoning

Sep 6, 2004

After a bad FY04 (poor operating margins due to high cotton prices), textiles companies are looking forward to grab the opportunities that are expected to come in post quota regime. The table below shows the buying interest witnessed by the textile stocks in last 6 months despite indices losing ground.

Arvind Mills: On the run

Aug 11, 2004

Despite a poor show in 1QFY05 and expected pressure on margins, on account of higher raw material costs, likely to continue in the near term, textile stocks have been in the reckoning in the recent past. The buying interest, however, is owing to the big export opportunity that lies ahead of Indian companies post 2005 when global markets would be thrown open with the quota regime coming to end. In this backdrop of the potential for Indian textile majors and the recent run up in stock prices of th

Indian Rayon: Is it really undervalued?

Mar 31, 2004

Indian Rayon is a diversified company under the A. V. Birla group. The company has presence in various sectors like viscose filament yarn (VFY), carbon black, garments, textiles, garments, insurance and is also one of the market leaders in same. The company's presence in software (PSI Datasystems) and insurance (Birla Sun Life Insurance) are through its subsidiary holdings. The company hived off its insulator division into a separate joint venture with NGL of Japan.

Arvind Mills: Denim disappoints

Mar 12, 2004

Indian textile major, Arvind Mills, declared lacklustre results for the December quarter 2003. The topline of the company dipped by around 8% during the quarter. Relatively high cotton prices affected operating margins significantly (down 530 basis points), as a result of which the bottomline of the company decline by 48% YoY.

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