Gokaldas Q4 investor presentation (https://www.gokaldasexports.com/wp-content/uploads/2023/05/Investor-Presentation-Q4FY23-Gokaldas-Exports.pdf) slide no 17 to 27 is a gold mine on macro indicators for the textile industry and must go through for any investor looking into the textile sector. The Indian textiles sector has been benefiting from china+1 story over the last few years(China has maximum market share in global apparel export).
Another interesting opportunity for Indian players is to compete with countries like Bangladesh, Vietnam who have significant market share in the UK/EU region.
Currently Indian textile companies exporting to the UK/EU have 12% duty compared to 0% on countries like Bangladesh and Vietnam.
With the ongoing free trade agreement between India and UK, if the import duty structure is removed then it will put Indian companies at par with Bangla and Vietnam. Currently they have 26% and 9% market share respectively compared to 6% by India.
India is reasonably comparable/better to other countries in terms of labor cost, skills, textile integration, port connectivity and govt support.
Currently India has done 9 rounds of FTA negotiations with the UK and four rounds with the EU. Let’s hope for some final deal which can help Indian textile companies like Gokaldas.
Disclosure: tracking quantity.
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