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Business/Technical/Industry Related Terms or Abbreviation
CERTAIN CONVENTIONS, PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET
DATA AND CURRENCY OF PRESENTATION
CERTAIN CONVENTIONS
All references to “India” contained in this Draft Red Herring Prospectus are to the Republic of India
and its territories and possessions and all references to the “Government”, “Indian Government”, “GoI”,
“Central Government” or the “State Government” are to the Government of India, central or state, asapplicable. Further, all references to the “U.S.”, “US”, “U.S.A” or “United States” are to the UnitedStates of America and its territories and possessions.
Unless otherwise specified, any time mentioned in this Draft Red Herring Prospectus is in IndianStandard Time (“IST”). Unless stated otherwise, or the context requires otherwise, all references to a
“year” in this Draft Red Herring Prospectus are to a calendar year.
Unless stated otherwise, all references to page numbers in this Draft Red Herring Prospectus are to the
page numbers of this Draft Red Herring Prospectus.
FINANCIAL DATA
Our fiscal commences on April 1 and ends on March 31 of the next year. Accordingly, all references to
a particular financial year, Fiscal or FY, unless stated otherwise, are to the 12-month period
commencing on April 1 of the immediately preceding calendar year and ending on March 31 of that
particular year.
Unless the context requires otherwise or as otherwise stated, the financial information in this Draft Red
Herring Prospectus is derived from our Restated Financial Information, for the Three Months Period
ended June 30, 2025 and Fiscals 2025, 2024 and 2023, comprising the restated statement of assets and
liabilities as at June 30, 2025, March 31, 2025, March 31, 2024, and March 31, 2023, the restated
statement of profit and loss (including other comprehensive income), the restated statement of cash
flows and restated statement of changes in equity for the Three Months Period ended June 30, 2025 and
for the Fiscals 2025, 2024, and 2023, the summary statement of material accounting policies, and other
explanatory information prepared in terms of the requirements of Section 26 of Part I of Chapter III of
the Companies Act, the SEBI ICDR Regulations and the Guidance Note on “Reports in Company
Prospectuses (Revised 2019)” issued by the ICAI, as amended from time to time. The Restated
Financial Statements has been prepared to comply in all material respects with the Indian AccountingStandards (“Ind AS”) as prescribed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules, 2015 (as amended from time to time), presentation requirements of
Division II of Schedule III to the Companies Act, as applicable to the financial statements and otherrelevant provisions of the Companies Act. For further information, see “Restated Financial
Information” beginning on page 351.
There are significant differences between Indian GAAP, Ind AS, IFRS and U.S. GAAP. Our Company
has not attempted to explain those differences or quantify their impact on the financial data included in
this Draft Red Herring Prospectus, nor do we provide a reconciliation of our financial statements to
those of IFRS or any other accounting principles or standards. If we were to prepare our financial
statements in accordance with such other accounting principles, our results of operations, financial
condition and cash flows may be substantially different. For details in connection with risks involving
Page 29
INDUSTRY AND MARKET DATA
Unless otherwise indicated, industry and market data used in this section has been derived from theindustry report titled “Textile Research Report” dated December 2025 (“CareEdge Report”) prepared
and issued by CARE Analytics and Advisory Private Limited (“CareEdge”), appointed by us andexclusively commissioned and paid for by us in connection with the Issue pursuant to a mandate letter
dated April 19, 2025. CareEdge is an independent agency which has no relationship with our Company,
our Promoters and any of our Directors or KMPs or SMPs. The data included herein includes excerpts
from the CareEdge Report and may have been re-ordered by us for the purposes of presentation. There
are no parts, data or information (which may be relevant for the proposed Issue), that has been left out
or changed in any manner. Unless otherwise indicated, financial, operational, industry and other related
information derived from the CareEdge Report and included herein with respect to any particular year
refers to such information for the relevant financial year. A copy of the CareEdge Report is available
on the website of our Company at[www.sonaselection.com](http://www.sonaselection.com/) until the Bid/Issue Closing Date.
Unless otherwise indicated, all financial, operational, industry and other related information derived
from the CareEdge Report and included herein with respect to any particular year, refers to such
information for the relevant year. Actual results and future events could differ materially from such
forecasts, estimates, predictions, or such statements. Although the industry and market data used in this
Draft Red Herring Prospectus is reliable, industry sources and publications may base their information
on estimates and assumptions that may prove to be incorrect. Further, industry sources and publications
are also prepared based on information as of specific dates and may no longer be current or reflect
current trends. The extent to which industry and market data set forth in this Draft Red HerringProspectus is meaningful depends on the reader’s familiarity with and understanding of themethodologies used in compiling such data. There are no standard data gathering methodologies in the
industry in which we conduct our business, and methodologies and assumptions may vary widely
among different industry sources.
In making any decision regarding the transaction, the recipient should conduct its own investigation
and analysis of all facts and information contained in the prospectus and the recipient must rely on its
own examination and the terms of the transaction, as and when discussed. For risks in relation to theCareEdge Report, see “Risk Factors – Certain sections of this Draft Red Herring Prospectus disclose
information from the CareEdge Report which has been commissioned and paid for by us exclusively in
connection with the Issue and any reliance on such information for making an investment decision in
the Issue is subject to inherent risks” on page 75.
CURRENCY AND UNITS OF PRESENTATION
All references to “Rupee(s)”, “₹”, “INR” or “Rs.” are to Indian Rupees, the official currency of the
Republic of India. All references to “€” or “EUR” are to the Euro, the official currency of FederalRepublic of Germany/ European Union. All references to “$”, “U.S. Dollar(s)”, “USD” or “US Dollar”are to United States Dollars, the official currency of the United States of America.
In this Draft Red Herring Prospectus, our Company has presented certain numerical information. All
financial figures sourced from our internal records have been expressed in million, where one million
represents 10,00,000. However, where any figures have been sourced from third-party industry
Page 34
For details, see “Industry Overview” beginning on page 172.
OUR PROMOTERS
Harshil Nuwal, Subhash Chandra Nuwal, Deepank Bhandari, Uma Nuwal and Sona Polyspin Private
Limited are the Promoters of our Company. For further details, see “Our Promoters and Promoter
Group” beginning on page 335.
ISSUE SIZE
The following table summarizes the details of the Issue size:
(1) The Issue has been authorised by a resolution of our Board of Directors passed at its meeting held on October
28, 2025 and by our Shareholders pursuant to a special resolution passed at their meeting held on November 04,
2025.
*Subject to finalization of Basis of Allotment.
The Issue shall constitute [•]% of the post-Issue paid-up Equity Share capital of our Company. For
further details, see “The Issue” and “Issue Structure” on pages 92 and 514, respectively.
OBJECTS OF ISSUE
Our Company proposes to utilise the Net Proceeds towards funding the following objects:
(₹ in million)
- (1) To be finalised upon determination of the Issue Price and updated in the Prospectus prior to filing with the RoC.
The amount to be utilised for general corporate purposes shall not exceed 25% of the Gross Proceeds from the
Issue.
For further details, see “Objects of Issue” beginning on page 141.
SECTION – II – RISK FACTORS
An investment in the Equity Shares involves a high degree of risk. Prospective investors should carefully
consider all the information in this Draft Red Herring Prospectus, including the risks and uncertainties
described below, before evaluating our business and making an investment in the Equity Shares
pursuant to the Issue. This section should be read in conjunction with “Industry Overview”, “Our
Business”, “Restated Financial Information” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations”, on pages 172, 261, 351, and 433, respectively, before
making an investment decision in relation to the Equity Shares. For capitalised terms used but not
defined herein, see “Definitions and Abbreviations” on page 1.
The risks and uncertainties described in this section are not the only risks that are relevant to us, the
Equity Shares or the industry and sector in which we operate. Additional risks and uncertainties not
currently known to us or that we currently believe to be immaterial may also have an adverse effect on
our business, results of operations, cash flows and financial condition. If any of the following risks or
other risks that are not currently known or are now deemed immaterial actually occur, our business,
results of operations, cash flows and financial condition could be adversely affected, the trading price
of the Equity Shares could decline, and investors may lose all or part of their investment. The financial
and other related implications of risks concerned, wherever quantifiable, have been disclosed in the
risk factors described below. However, there are certain risk factors where such implications are not
quantifiable, and hence any quantification of the underlying risks has not been disclosed in such risk
factors.
In making an investment decision, prospective investors must rely on their own examination of our
Company and the terms of the Issue, including the merits and risks involved. Prospective investors
should consult their tax, financial and legal advisors about the particular consequences they may
encounter from investing in the Equity Shares.
This Draft Red Herring Prospectus contains forward-looking statements that involve risks and
uncertainties. Our actual results could differ materially from those anticipated in such forward-looking
statements as a result of certain factors, including the considerations described below and elsewhere
in this Draft Red Herring Prospectus. For details, see “Forward-Looking Statements” on page 27.
Unless otherwise indicated or the context requires otherwise, the financial information included herein
is based on our Restated Financial Information included in this Draft Red Herring Prospectus. For
further information, see “Restated Financial Information” on page 351. Our financial or fiscal year
ends on March 31 of each relevant year. Accordingly, references to a “Fiscal” or “fiscal year” are to
the 12-month period ended March 31 of the relevant year.
Unless otherwise indicated, industry and market data used in this section have been derived from the
report titled “Textile Research Report” dated December, 2025 (“CareEdge Report”) prepared and
issued by CARE Analytics and Advisory Private Limited and exclusively commissioned and paid for by
us in connection with the Issue, pursuant to an engagement letter dated April 19, 2025. CareEdge is an
independent agency which has no relationship with our Company, our Promoter and any of our
Directors or KMPs or SMPs. The data included herein includes excerpts from the CareEdge Report and
may have been re-ordered by us for the purposes of presentation. There are no parts, data or information
(which may be relevant for the proposed Issue), that have been left out or changed in any manner.
Unless otherwise indicated, financial, operational, industry and other related information derived from
Page 70
industry is also embracing sustainability, with rising adoption of recycled fibres and eco-friendly
manufacturing processes to meet global environmental standards. Supported by technological
advancements and strong export potential, synthetic textiles are rapidly gaining market share.
These benefits are increasingly aligning with the expectations of both manufacturers and end
consumers. Also, see “Our Business – Competition” and “Industry Overview” on pages 289 and
172, respectively, for further details on competitive conditions that we face across our various
business segments. Moreover, aggressive competition may force us to lower our prices or
increase credit terms to retain customers, which can negatively impact our margins. Any failure
to compete effectively, upgrade our product mix, or match the pace of technological and material
innovations in the industry may lead to loss of market share, lower capacity utilisation, and
weakened financial performance.
- 22. Our Company’s Promoters and Directors and some of our Group Companies are at present
involved and may enter into ventures that may lead to real or potential conflicts of interest with
our business
As on the date of this Draft Red Herring Prospectus, our Promoter namely Harshil Nuwal, and
Subhash Chandra Nuwal, have interest in Sona Processors (India) Limited, Sona Texfab Private
Limited, and Sona Styles Limited which are authorised by their constitutional documents to
undertake activities similar or synergistic to those carried out by our Company. However, as on
the date of this Draft Red Herring Prospectus, Sona Texfab Private Limited, and Sona Styles
Limited are not undertaking any business activities that are similar to those of our Company. For
details, see “Our Group Company – Common Pursuits between our Group Companies and our
Company” on page 348.
Sona Processors (India) Limited is engaged in activities similar to those of our Company.
Although we have entered into non-compete agreement with Sona Processors (India) Limited,
there can be no assurance that in future, conflicts of interests may not arise in allocating business
opportunities amongst our Company, our Group Company and Promoters in circumstances where
our respective interests may be diverged.
We cannot assure that conflicts will not arise in the future, particularly if any said companies or
ventures chooses to engage in business activities that are similar to those carried out by our
Company. In the event that such a situation arises, our Company shall adopt appropriate
procedures and measures, in accordance with applicable laws and regulatory guidelines, which
may include the execution of further non-compete agreements or other conflict mitigation
strategies, to effectively address and manage any such potential conflicts of interest.
- 23. We require certain approvals and licenses in the ordinary course of business and are required
to comply with certain rules and regulations to operate our business, any failure to obtain,
retain and renew such approvals and licences or comply with such rules and regulations may
adversely affect our operation.
Our business operations are subject to numerous statutory and regulatory approvals, permits,
licenses, and registrations at the central, state, and local levels. These approvals are critical for
conducting and expanding our activities, particularly in relation to our manufacturing facility at
Bhilwara, Rajasthan, and our compliance with applicable, industrial and environmental
regulations. Many of these approvals are valid only for specific periods and are subject to periodic
Page 109
Chir Amrit Legal LLP
Address: Unique Destination, 6th Floor,
Tonk Road, Jaipur, Rajasthan 302015
Telephone: +91 141 – 4044500
E-mail:[ipo@chiramritlaw.com](mailto:ipo@chiramritlaw.com)
Website:[www.chiramritlaw.com](http://www.chiramritlaw.com/)
Contact Person: Harsha Totuka
STATUTORY AND PEER REVIEW AUDITOR OF OUR COMPANY
Pokharna Somani & Associates
Address: 12, PS House, Sancheti Colony,
Mirchi Mandi Road, near S.K. Plaza, Pur Road,
Bhilwara – 311001, Rajasthan
Telephone: +91 7014868564
E-mail:[pokharnasomani@gmail.com](mailto:pokharnasomani@gmail.com)
Contact Person: CA Sumit Bumb
Firm Registration Number: 011535C
Membership No: 429413
Peer Review Number: 020697
CHANGES IN STATUTORY AUDITORS
Except as mentioned below, there has been no change in our statutory auditors in the three years
preceding the date of this Draft Red Herring Prospectus:
REGISTRAR TO THE ISSUE
Page 159
Source: The industry high and low has been considered from the industry peer set provided later in this section.The industry average has been calculated as the arithmetic average P/E of the industry peer set disclosed in
this section.
As certified by our Statutory Auditors vide their certificate dated December 08, 2025.
- 3. Return on Net Worth (RoNW)
*Not Annualised
As certified by our Statutory Auditors vide their certificate dated December 08, 2025.
Notes:
- a. Return on Net Worth (%) = Net Profit after tax as restated for the end of the period/fiscal
divided by Average Net worth as at the end of the period/fiscal.
- b. Average net worth means the average of the net worth of current and previous Period/Fiscal.
Net worth means the aggregate value of the paid-up share capital and other equity.
- c. Weighted average is aggregate of year-wise weighted RoNW divided by the aggregate of
weights i.e. {(RoNW x Weight) for each period/fiscal} / {Total of weights}.
- 4. Net Asset Value (“NAV”)
Page 164
our operations and financial performance. These non-GAAP measures and industry measures may vary
from any standard methodology that is applicable across the industry, and therefore may not be comparable
with financial or industry related statistical information of similar nomenclature computed and presented
by other companies” on page 82.
Page 166
Comparison of our key performance indicators with listed industry peers for the Period/Fiscals included in the Restated Financial Information:
(₹ in million, unless stated otherwise)
Page 167
*Not Annualised
As certified by our Statutory Auditors vide their certificate dated December 11, 2025.
Notes:
Source: All the information for listed industry peers mentioned above is on a consolidated basis (unless otherwise available only on standalone basis) and is sourced from their respective
financial results / annual reports available in public domain. The ratios have been computed as per the following definitions.
- (1) Revenue from operations means the Revenue from Operations as appearing in the Restated Financial Information.
- (2) EBITDA means Earnings before interest, taxes, depreciation and amortization expense, which has been arrived at by obtaining the profit/ (loss) before exceptional items and tax for the
period/fiscal and adding back finance costs and depreciation and amortization expenses.
- (3) EBITDA margin is calculated as EBITDA as a percentage of revenue from operations.
- (4) Net Profit after tax represents the restated profits of our Company after deducting all expenses.
- (5) Net Profit margin is calculated as restated net profit after tax for the period/fiscal divided by revenue from operations.
- (6) Return on Net Worth is calculated as Net Profit after tax as restated for the end of the period/fiscal divided by Average Net worth as at the end of the period/fiscal. Average net worth
means the average of the net worth of current and previous period/fiscal. Net worth means the aggregate value of the paid-up share capital and other equity.
- (7) Return on capital employed) is calculated as Earnings before interest and taxes divided by average capital employed (average capital employed is calculated as average of the total
equity, total borrowings and deferred tax liabilities (net of deferred tax assets) of the current and previous period/fiscal.
- (8) Debt-equity ratio is calculated by dividing total debt by total equity. Total debt represents long term and short-term borrowings. Total equity includes the aggregate value of the paid-up
share capital and other equity.
- (9) Sale of Services is calculated as revenue from sale of services as appearing in the Restated Financial Information, divided by the total revenue from operations.
- (10) Sale of Goods is calculated as revenue from sale of goods as appearing in the Restated Financial Information, divided by the total revenue from operations.
- (11) Days Working Capital is arrived at by dividing working capital (current assets excluding cash and cash equivalents and bank balances less current liabilities excluding short term
borrowings) by revenue from operations multiplied by the number of days in the period/fiscal (91/365).
- (12) Inventory Days =Number of days during the period/fiscal ( 91/365)/ (Cost of Goods Sold/average Inventory at the beginning and end of the Period/Fiscal).
- (13) Debtor Days = Number of days during the period/fiscal (91/365)/ (Revenue from Operations/average Trade Receivables at the beginning and end of the Period/Fiscal).
- (14) Creditor Days = Number of days during the period/fiscal (91/365)/ (Net Purchases /average Trade Payables at the beginning and end of the Period/Fiscal).
INDUSTRY OVERVIEW
Unless otherwise indicated, industry and market data used in this section has been derived fromindustry publications, in particular, the report titled “Textile Research Report” dated December, 2025(“CareEdge Report”), exclusively prepared and issued by CARE Analytics and Advisory PrivateLimited, who were appointed by our Company pursuant to an engagement letter dated April 19, 2025,
and the CareEdge Report has been commissioned by and paid for by our Company in connection with
the Issue. A copy of the CareEdge Report is available on the website of our Company at[www.sonaselection.com](https://sonaselection.com/). There are no parts, data or information (which may be relevant for theproposed Issue), that has been left out or changed in any manner. Unless otherwise indicated, financial,
operational, industry and other related information derived from the CareEdge Report and included
herein with respect to any particular calendar year/ Fiscal refers to such information for the relevant
calendar year/ Fiscal. Industry sources and publications are also prepared based on information as of
specific dates and may no longer be current or reflect current trends. Industry sources and publications
may also base their information on estimates, projections, forecasts and assumptions that may prove to
be incorrect. Accordingly, investors must rely on their independent examination of, and should not
place undue reliance on, or base their investment decision solely on this information. The recipient
should not construe any of the contents of the CareEdge Report as advice relating to business, financial,
legal, taxation or investment matters and are advised to consult their own business, financial, legal,
taxation, and other advisors concerning the transaction. For more information, see “Risk Factors -Certain sections of this Draft Red Herring Prospectus disclose information from the CareEdge Report
which has been commissioned and paid for by us exclusively in connection with the Issue and any
reliance on such information for making an investment decision in the Issue is subject to inherent risks.”on page 75. Also see, “Certain Conventions, Presentation of Financial, Industry and Market Data andCurrency of Presentation – Industry and Market Data” on page 25.
Global economic growth expected to sustain at ~3% in near term
Global growth, which peaked at 3.5% in CY23, moderated to 3.3% in CY24 and is projected to decline
further to 3.2% in CY25 and 3.1% in CY26. This slowdown is largely attributed to escalating trade
tensions, particularly the imposition of new U.S. tariffs and retaliatory measures from key trading
partners. These developments are expected to push global tariff levels to historic highs, dampening
trade flows and weakening growth prospects. In response, countries are reassessing their strategic
priorities and policy frameworks. Central banks are likely to recalibrate monetary policies, while
prudent fiscal management and structural reforms will be essential to address rising debt levels and
mitigate widening global inequalities.
Chart 1: Global Growth Outlook Projections (Real GDP, Y-o-Y change in %)
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Source: IMF – World Economic Outlook, October 2025; Note: P-Projection
Table 1: GDP growth trend comparison - India v/s Other Economies (Real GDP, Y-o-Y change
in %)
Source: IMF- World Economic Outlook Database (October 2025); Note: P- Projections, India's fiscal
aligns with the IMF's calendar year (CY). For instance, FY24 corresponds to CY23.
Resilience to External Shocks remains Critical for Near-Term Outlook
India’s economy continues to show rapid growth. In the first quarter of FY26, the country’s GDP grewby 7.8% compared to the same period last year, which saw a 6.5% increase. For the full year FY26,
GDP is expected to grow by 6.8%, supported by rising rural demand, better job opportunities, and active
business conditions.
In FY25, provisional estimates show a growth of 6.5% (Rs 187.97 trillion), led by robust performance
Page 189
The global textile industry is a vast and dynamic sector that plays a crucial role in the world economy,
connecting agriculture, manufacturing, design, and retail across continents. It encompasses the
production of fibres, yarns, fabrics, and finished garments, involving both natural and synthetic
materials. The industry is constantly evolving through innovation, with trends in fashion, sustainability,
and technology driving its direction. From cotton fields to high-tech textile labs, the sector reflects a
blend of artisanry and industrial scale.
Major textile-producing countries include China, India, Bangladesh, Vietnam, and Türkiye, which serve
as key hubs for manufacturing due to their large labour forces and established infrastructures.
Meanwhile, Western nations often lead in high-end fashion design, textile innovation, and sustainable
solutions. The industry supports millions of jobs worldwide, from farming and factory work to
marketing and retail, making it a vital contributor to both developing and developed economies. This
industry supports a wide range of products, including clothing, household textiles (like curtains and bed
linens), industrial fabrics, and technical textiles used in sectors like healthcare, construction, and
automotive.
Overall, the textile industry is a complex and interconnected system that supports a wide range of
economic activities, cultural expressions, and everyday needs. From the sourcing of raw fibres to the
creation of high-performance technical fabrics and fashionable garments, each stage contributes
significantly to global trade and employment. Innovation, sustainability, and responsiveness to
consumer trends are driving the industry's transformation, making it an essential future focused
segment. As it evolves, the textile sector remains a key player in shaping global economies and
lifestyles.
- 2.1. Sectors in the Global Textile Industry
- - 1. Spinning Sector: The spinning sector is the foundation of the textile industry, responsible for
converting raw fibres like cotton, wool, jute, and synthetic materials into yarn. India is one of theworld’s largest producers of cotton and cotton yarn. Spinning mills are highly mechanised and
are concentrated in states like Tamil Nadu, Maharashtra, and Gujarat. This sector supplies yarn
to both domestic weavers and international buyers.
- - - 2. Weaving and Knitting Sector: This sector focuses on transforming yarn into fabric. Weaving is
done using handlooms or power looms, while knitting is commonly used for stretchable or close-fitting fabrics. India’s power loom sector is decentralised and prominent in towns like Bhiwandi
(Maharashtra), Erode (Tamil Nadu), and Surat (Gujarat), producing a wide range of fabrics
including cotton, polyester, and blends. Meanwhile, the handloom sector plays a crucial role in
preserving traditional crafts and providing rural employment.
- - - - 3. Textile Processing Sector: The textile processing sector plays a critical role in adding value to
fabrics by transforming raw or greige textiles into finished products ready for use. Key processes
include dyeing, printing, and finishing, each of which impart specific properties to the fabric.
The global textile industry is vast and diverse, comprising several key sectors that span the entire value
chain from raw materials to finished products. The main sectors of the textile industry globally are:
Page 192
upward trend reflects the rising demand for textiles across various segments including fashion, home
furnishings, and technical applications. The growth is driven by factors such as expanding global
population, the rise of fast fashion, and advancements in textile technology. Additionally, growing
awareness around sustainable and functional textiles has further diversified market offerings,
contributing to this continued expansion in value.
Chart 10: Global Market Size of Textile Industry
Source: Industry Sources
Page 195
- 3.1. Overview of Indian Textile Industry
The Indian textile and apparel industry spans a vast, interconnected value chain, starting from the
cultivation of natural fibres and production of synthetic materials to spinning, weaving, processing,apparel manufacturing, and retail. As the world’s second-largest producer of textiles and garments and
the third-largest exporter, India holds a significant position in the global market. The sector contributesaround 13% to industrial production, 2.3% to GDP, and 12% to national exports. The industry’s scopeincludes not just apparel, but also home textiles and technical textiles, placing India among the top five
global exporters across various textile segments.
Beyond manufacturing, the sector has strong linkages with allied domains. It supports agriculture by
creating demand for cotton, wool, and jute, while contributing to rural livelihoods. The sector
collaborates with designers to integrate traditional craftsmanship with contemporary aesthetics.
Moreover, efficient logistics and e-commerce platforms expand market access, benefiting even small
and rural enterprises. With increasing emphasis on sustainability, ethical sourcing, and circular fashion,
India is establishing itself not only as a major supplier but also as a global trendsetter in textiles.
Chart 11: Indian Textile and Apparel Industry Market Size
Source: PIB, CareEdge Research
The Indian textile and apparel industry is set to grow from USD 174 Billion in FY24 to USD 350 Billion
in FY30, with a 12.4% CAGR driven by rising domestic and export demand. Domestically, rising
disposable incomes, and rapid urbanization have led to increased consumption of fashion and home
textiles. The boom in online retail and e-commerce platforms has also expanded market access and
visibility, particularly for small and medium textile enterprises.
On the global front, India has benefitted from shifting supply chains as countries seek alternatives to
China, positioning India as a reliable sourcing destination. Government interventions such as the
Production-Linked Incentive (PLI) scheme, the establishment of PM MITRA Parks, and support for
Page 196
technical and man-made fibres have further strengthened infrastructure and innovation capabilities.
Sustainability trends, focus on organic cotton, and the increasing popularity of Indian handlooms and
heritage textiles in international markets have also boosted the sector’s appeal. Together, these factorshave created a solid foundation for long-term, inclusive growth in industry.
The textile value chain encompasses the entire process of transforming raw fibre into finished textile
products. It begins with the sourcing of raw materials, such as natural fibres like cotton and wool or
synthetic fibres like polyester and nylon. These fibres are then spun into yarn, which is woven or knitted
into fabric. The fabric undergoes wet processing, including dyeing, printing, and finishing treatments
to enhance its appearance and functionality. During garmenting, the fabric is cut and stitched into final
products such as clothing or home textiles. The finished goods are distributed through retail or
wholesale channels to reach consumers. Increasingly, the value chain incorporates post-consumerrecycling and upcycling, reflecting the industry’s growing commitment to sustainability and circular
practices.
![Fiber
Spinning
Weaving
Bleaching
Finishing
Retailing
\(Continuous Block Process\)]()
In India, fibre sourcing is closely tied to regional agro-climatic conditions, which support the
cultivation and availability of key fibres in specific states. Cotton is sourced primarily from
Maharashtra, Gujarat, Telangana, and Punjab, where black soil and warm climates are ideal for
cotton cultivation. Jute is sourced mainly from the alluvial plains of West Bengal, due to the
humid climate and fertile soil near the Ganges delta. Karnataka is India's largest producer of
mulberry silk. Assam is known for its unique varieties like Muga and Eri silk, which are sourcedfrom indigenous silkworm’s native to the region. India also imports synthetic fibres like polyesterand viscose, mostly from China, South Korea, and Indonesia, to support its growing man-made
fibre industry, as domestic production is still catching up. Additionally, Rajasthan’s Bhilwara,
widely recognized as the ‘Textile City of India,’ is a hub for fibre procurement and fabric
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India's textile industry is historically grounded in natural fibres like cotton, wool, silk, and Jute textiles.
- • Cotton is the largest segment, with India being the world’s top producer. Cotton textilesinclude spinning, weaving, and garmenting of yarns and fabrics used both domestically and
globally. States like Gujarat, Maharashtra, and Tamil Nadu and Bhilwada are hubs. India's
cotton yarn exports are a vital component of the industry, representing a substantial portion of
25-35% of its total production in FY2024. The primary driver for the revenue growth in fiscal
2026 will be the recovery in yarn exports to China. Exports form a significant portion of theindustry’s revenue, with China being one of the key markets.
- • Woolen textiles, though smaller, are significant in colder northern regions like Punjab and
Himachal Pradesh. Known for high-quality shawls, suits, and blankets, this segment supports
winter clothing and luxury wear. India's total wool production for the year 2023–24 is
estimated at 33.69 million kilograms, indicating a slight rise of 0.22% over the previous year's
output. The production stood at 36.76 million kilograms in 2019–20 and 33.61 million
kilograms in 2022–23. State wise Rajasthan remains the dominant contributor to national wool
output, accounting for 47.53% of the total, followed by Jammu & Kashmir (23.06%), Gujarat
(6.18%), Maharashtra (4.75%), and Himachal Pradesh (4.22%). In terms of year-on-year
growth, Punjab led the way with an impressive annual growth rate of 22.04%, trailed by Tamil
Nadu at 17.19% and Gujarat at 3.20%.
- • Silk holds deep cultural and artisanal significance in India, as it is the only country producing
all four natural silk types such as Mulberry, Tussar, Eri, and Muga. Karnataka leads in
production, with regions like Banaras and Kanchipuram known for traditional handloom silk.
India is the second-largest global producer and consumer of silk, with raw silk output rising
from 31,906 MT in 2017–18 to 38,913 MT in 2023–24, and mulberry cultivation expanding
to 263,352 hectares in FY24. Despite a provisional dip in 9MFY25 with a production of 30,614
MT, the sector shows steady growth, supported by modernization, government initiatives, and
strong export performance, led by high-value products like fabrics, garments, and silk carpets.
- • Jute: India ranks as the world’s top jute producer, followed by Bangladesh and China, withcultivation mainly concentrated in West Bengal, Assam, and Bihar. However, production and
domestic usage are on the decline due to costly procurement, limited raw material supply, and
outdated equipment. Demand is further impacted by strong competition from synthetic
alternatives and fibres like mesta.
- - 2. Synthetic and Man-Made Fibres (MMF): This segment includes polyester, viscose, nylon,
acrylic, and other man-made fibres and filaments. These are widely used due to their durability,
affordability, and versatility textiles are heavily utilized in sportswear, industrial textiles, home
furnishing, and technical applications. The MMF sector is rapidly expanding, supported by
changing urban lifestyles, innovation in fibre technology, and global demand for performancefabrics. The demand for man-made fibres and fabrics (MMF&F) increased in 2022–23 as
garment manufacturers turned to MMF&F due to the rising cost of cotton. In 2023–24, MMF&F
production grew at a robust 14.7%, with synthetic fibre output surging by 25.5% and synthetic
yarns rising by 8.6%. In 2024–25, the production of man-made fibres and fabrics is expected to
grow steadily, driven by rising demand from the apparel sector and high cotton prices, which are
pushing manufacturers toward more affordable synthetic alternatives. Meanwhile, the Cotton
Corporation of India (CCI) has increased the Minimum Support Price for cotton, encouraging
farmers to sell at government centres. This has limited private ginners' access to cotton, and with
CCI expected to release stocks only after June, domestic prices may stay elevated. However,
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The industry is currently facing challenges such as limited availability of high-performance
fibres, a lack of entrepreneurial initiatives, and gaps in skilled manpower. To address these issues
and drive sectoral growth, the government has launched the National Technical Textiles Mission
(NTTM), with a funding allocation of Rs. 1,480 crores. NTTM supports R&D, market
development, exports, and skill training. Initiatives like GIST 2.0 and the GREAT scheme are
fostering stronger linkages between academia and industry. Under NTTM, over 168 research
projects and 71 innovations have been undertaken. Additionally, the budget boosts capital
subsidies for technical textiles investments, increasing the subsidy for spinning modernization
from 2% to 6% to reduce costs and promote machinery upgrades. Furthermore, events such as
Technotex 2024 and progressive state policies are contributing to the overall development of the
sector.
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Textile Weaving: India’s weaving industry is underpinned by a diverse array of fibre inputs comprisingman-made, natural, and specialty fibres, each contributing uniquely to the sector’s scale of operations,structural composition, and level of technological advancement.
- • Man-made fibres (MMF), with the production volume at 5.481 million metric tons in FY24, are
integral to industrial weaving. Widely used in the organized power loom and mill sectors, MMFs
such as polyester and viscose are processed through automated systems, including high-speed
shuttle-less looms like air-jet and rapier machines. Their uniformity and tensile strength make
them ideal for mass production of blended fabrics, ready-made garments, furnishings, and
technical textiles. MMFs enable high efficiency, cost-effectiveness, and scalability, positioning
India competitively in global textile exports.
- • Cotton, producing 5.50 million metric tons in FY24, remains the backbone of India’s traditionaland semi-mechanized weaving industry. It is processed in handloom and power loom units, with
handlooms preserving artisanal techniques and power looms enabling higher productivity.Cotton’s softness and breathability make it ideal for ethnic wear, casual clothing, and hometextiles, giving it a unique dual role in both mass and artisanal markets.
- • Jute (1.0439 million metric tons) and silk (30,614 metric tons) also play vital roles. Jute is mainly
woven for industrial uses like sacks and mats, supporting rural agro-industries and eco-friendly
products. Silk drives the luxury and heritage segment, produced mainly on handlooms and
jacquard looms in clusters such as Varanasi, Kanchipuram, and Assam, supporting artisanal
livelihoods and cultural heritage.
- • Consumer preferences in India are rapidly evolving due to urbanization, rising incomes, and
growing sustainability awareness. Domestic demand covers ethnic wear (sarees, kurtas) and
functional fabrics (wrinkle-free, moisture-wicking). Regional tastes differ, with the South
favouring fine cotton, the East silks, and the West colourful prints like Bandhani and Patola.
Globally, Indian fabrics are sought after in the US, Europe, and the Middle East for shirting,
home textiles, and eco-labelled products, pushing producers to meet international quality and
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