29 November 2023, Mumbai

The combined revenues of key players in the home textile sector, including Welspun, Trident, Himatsingka, and Indo Count, are forecast to see an approximately 8 percent year-on-year increase, reaching Rs 215 billion in FY24, says an ICRA Ratings report.

KK Lalpuria, Executive Director and CEO of Indo Count Industries, emphasizes that the primary driver for this growth will be the escalating demand for premium and sustainable home textile products. Conversely, the demand for mass-produced home textile items is anticipated to remain at a moderate level.

Bracing up

Overcoming challenges such as elevated material and energy costs, alongside subdued demand in the US and EU markets, led to an 18 per cent decline in India's home textile exports in FY2023 and a subsequent 12 per cent decline in the initial four months of FY2024.

During these periods, the US claimed the largest market share in home textile exports, accounting for 56 per cent in FY2023 and 58 per cent in the initial four months of FY2024.

Quotes

Kaushik Das, Vice-President & Co-Group Head, Corporate Sector Ratings at ICRA, expresses optimism that India's home textile exports will receive a boost in the first four months of FY2024, driven by proposed Free Trade Agreements (FTAs) with the UK and the EU, existing FTAs with Australia and the UAE, and the China Plus One strategy adopted by major retailers.

Multiple data-points

Projections indicate that the export share of home textile products such as beds, tables, toilets, and kitchen linen will rise to 32–33 percent in the initial four months of FY2024, while exports of carpets and floor coverings are expected to surge to 31 per cent.

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Additionally, the anticipated rationalization in raw material costs and advantages stemming from a larger scale is poised to elevate the operating margins of home textile exporters by 250–350 basis points, reaching 14.5–15.5 percent in FY2024.

23 November 2023, Mumbai

Adesh Kumar Gupta, who served as the Executive Director at Liberty Shoes, was removed from the company's board of directors following the rejection of his petition by the National Company Law Tribunal (NCLT). Gupta's plea, filed under Section 244 of the Companies Act, 2013, which alleged oppression and mismanagement, was dismissed after seeking exemption from the requirement to file such a plea.

Nuanced picture

Gupta, along with other shareholders, collectively holding 5.83 per cent of the company's shares, sought relief under Section 244.

To file a plea on grounds of oppression and mismanagement, he needed at least one-tenth of the total issued share capital of the company. While this requirement can be waived by the NCLT in special circumstances, Gupta's petition was rejected.

The resolution for Gupta's removal from the company's board was passed during the Annual General Meeting held on September 30, 2023. This development marks a significant change in the leadership structure of Liberty Shoes, with Gupta's removal raising questions about the governance and internal dynamics within the company.

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As per Cotton Market Bulletin l
Cotton Futures
Most cotton futures contracts closed higher on November 13, 2023.
The December 2023 contract closed up 16 points at 77.48 cents per pound.
The March 2024 contract closed down 3 points at 79.47 cents per pound.
The May 2024 contract closed up 13 points at 80.41 cents per pound.
Pakistan
The Spot Rate Committee of the Karachi Cotton Association (KCA) decreased the spot rate by Rs 2,00 per maund to Rs 17,500 per maund.
The cotton market remained bearish with low trading volume.
Australia
Cotton Australia is launching an information and advertising campaign to tackle spray drift risks for growers.
The campaign will include radio ads, media releases, and collaboration with enforcement agencies.
The goal is to ensure that growers and contractors spray in compliance with regulations to protect themselves and their neighbors.
Overall, the cotton market is mixed with some contracts up and others down. Pakistan is experiencing bearish market conditions with low trading volume. Australia is taking proactive steps to address spray drift risks.