Crisil: Home textiles segment to see double-digit growth
02 November 2021, Mumbai:
Indian exporters of home textiles may have a 20 per cent surge in revenue in fiscal 2022, says ratings agency Crisil. Growth will ride on the back of strong retail sales in the US and better outlook for festive season in export-dominated markets.
This, along with global companies adopting a China plus one sourcing strategy, is likely to benefit homegrown home textile exporters.
Exports account for 60 per cent of the Rs 55,000 crore Indian home textiles industry, which comprises products such as terry towels, bed sheets and spreads, pillow covers, curtains, rugs and carpets.
The pandemic had impacted global demand for such products. However, export demand has been healthy so far this fiscal and is expected to stay strong in the third quarter, going into the festive season, as the impact of the pandemic wanes.
The US is a key export market that accounts for 55 per cent of export revenue. Exports to the US market grew 42 per cent year on year in the first half of calendar 2021 compared to a 15 per cent growth in the corresponding pre-pandemic period of calendar 2019. Average capacity utilisation of three large listed home textile players in the bed linen segment increased to 87 per cent in the first quarter of the fiscal when compared to pre-pandemic levels of 68 per cent.
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