industries progressing with scopes, post covid 19
In India, all the industries including that of textiles suffered a lot w.e.f. March`19 since the starting of the pandemic. The worst sufferers were the unorganised sectors which account for about90% (depending upon the nature of the business) of the industries and almost came to the stage of loss making/closure. Their main reasons were the shortage of workforce and stockpile up.Now at the stage of the ending the Covid -19, the garment sectors have started doing well, and most of them have reached at 100% working level especially the PPE manufacturers. The organised sectors and the big houses are doing a good business in local and export market. A greater future is ahead of them. Those who could make proper planning and business strategy and manufacturing value added products are the best game players in the market today. The GDP of India was 1.6% (Q4, 20-21) and that of 20.1% in Q1(21-22) despite so many other constraints. It is expected to rise gradually as per the IMF. Although textile and garment sectors have reached a certain level, the core industries like coal, natural gas, refineries, steel, fertilisers, cement, electricity etc have shown a growth of 8.9% YoY June 20- 21. The textile sectors, both cotton, polyester sectors’ machinery manufacturers are recovering from the shock but in comparison to 2019, it is still lagging in certain areas.
There was a high impact on unemployment and uncertainty among the workforce in private sectors where some were not able to pay the salaries, some paid partially, but now in almost all cases, it is arriving at Normal Stage. The education sectors are till now at high dissatisfaction stage and no prediction can be made right now (this is as per Dec`21 scenario).
This article discusses all about the profitability,and management`s strategy to lead the industries to a high level of satisfaction after Covid -19.
[2]The Impact of the Industries during Covid -19
Everyone is aware that in India and globally, the pandemic coronavirus created an economic slowdown along with immense human grief. The global outbreak has affected many businesses and created havoc in the textile, garment, and other industries as well. The spread of the virus had the serious implications and the companies started feeling the impact with store closures and uncertainty in orders with stockpile up. It has got the setback in the employment but with the Government initiatives and that of the proper planning of the organised sectors it was almost covered up.
Due to the closure of the retailers for the months together it highly affected the production sectors and hence the retrenchment of the workmen started. All the fashion events were cancelled. With the steep reduction in demand due to sudden halt of global trade and domestic sales due to the closure of retail stores, the industries faced unprecedented and severe losses.
During the lockdown period, there had been a migration of migrant workers going back to their respective places. Today almost 90% of them are back but and about 60% of the looms are working in Bhiwandi Powerloom Sector, and almost 90-95% looms are performing in Ichalkaranji, Malegaon and Solapur, Tirupur (1). (Almost no issue, as per the market survey done in 4th Week of Nov`21)
The organised sectors producing daily use like towels, bed Sheets and PPE, home décor etc were not much affected and now back to the near normalcy (as on 4th week of Nov`21). There is always a good market for the medical textile globally.
The polyester sector and textile machinery manufacturing areas were affected, though not closed completely, but now they are at profit making stage (Q3 21-22).
[3] Indian Economy Growth Rate
As per the RBI’s revised estimates of July 2021, (Q1) the real GDP growth of the country is estimated at 20.1% for the first quarter of FY22. The increase in the tax collection, along with government’s budget support to States strengthened the overall growth of the Indian economy.
India is focusing on renewable sources to generate energy. It is planning to achieve 40% of its energy from non-fossil sources by 2030, which is currently 30% and have plans to increase its renewable energy capacity from to 175 gigawatts (GW) by 2022. In line with this, in May 2021, India, along with the UK, jointly launched a ‘Roadmap 2030’ to collaborate and combat climate change by 2030.
India is expected to be the third largest consumer economy as its consumption may triple to US$4 trillion by 2025, owing to shift in consumer behaviour and expenditure pattern, according to a (2) Boston Consulting Group (BCG) report. It is estimated to surpass the USA to become the second largest economy in terms of purchasing power parity (PPP) by 2040 as per a report by PricewaterhouseCoopers. (IBEF)
India’s GDP grew 8.4% in Q2 FY22 as per TOI latest updates on global markets.
[4] GDP:India’s economy expanded by 8.4 percent year-on-year in July-September 2021, following a record 20.1 percent growth in the previous three-month period and matching market expectations. The reading marked a fourth straight quarter of expansion, as Coronavirus-related disruptions continued to ease and as the economic activity rebounded helped by a faster pace of vaccinations and a drop in cases. By sectors, service activity growth was supported by increases in trade, hotels, transport & communication (8.2% vs 34.3%), financial, real estate & professional services (7.8% vs 3.7%), and public administration, defence& other services (17.4% vs 5.8%). In addition, output rose for manufacturing (5.5% vs 49.6%), mining & quarrying (15.4% vs 18.6%), utilities (8.9% vs 14.3%), construction (7.5% vs 68.3%), and agriculture (4.5%, the same as in July-September). The Reserve Bank of India has forecast an annual growth of 9.5 percent in the current fiscal year. source: (3) Ministry of Statistics and Programme Implementation (MOSPI).
On the domestic front, data released by the National Statistical Office (NSO) on November 30, 2021, showed that real gross domestic product (GDP) expanded by 8.4 per cent year-on-year (y-o-y) in Q2:2021-22, following a growth of 20.1 per cent during Q1:2021-22. With the recovery gaining momentum, all constituents of aggregate demand entered the expansion zone, with exports and imports markedly exceeding their pre-COVID-19 levels. On the supply side, real gross value added (GVA) increased by 8.5 per cent y-o-y during Q2:2021-22.
[4.2] Available data for Q3:2021-22 indicate that the momentum of economic activity is gaining further traction, aided by expanding vaccination coverage, the rapid subsiding of new infections and release of pent-up demand. Rural demand exhibited resilience – tractor sales improved in October over the same month of 2019 (pre-pandemic level), while motorcycle sales are slowly inching towards their pre-pandemic levels. Continued direct transfers under PM Kisan Scheme are supporting rural demand. The demand for work under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) moderated in November from a year ago, suggesting a pickup in farm labour demand. Supported by favourable soil moisture content and good reservoir storage levels, rabi sowing was 6.1 per cent higher than a year ago as on December 3, 2021.(4)
[5] The Future of Work After COVID-19: According to Gartner
(By Modern Recruiters TeamNovember 16, 2021)
With the COVID-19 pandemic now in a manageable state, the United States has been able to re-establish a post-pandemic mindset towards life. Recruiters are now noticing good indications of recruitment; unemployment rates are decreasing, and the country is starting to hire again. Recruitment forecasts are expected to rise in 2022 but will continue to fluctuate along with the economy in some countries.
Now let us find the future trends of the working procedures:
1 Remote Working Will Stay
According to a recent Gartner poll, 48% of employees will likely work remotely at least part of the time after COVID-19, up from 30% previously. As organisations move to more distributed work arrangements, assess the crucial skills needed for digitally collaborative working and be prepared to alter employee experience methods.
2 Contingent Worker Expansion
Gartner predicts that organisations will keep utilising contingent employees to increase operational flexibility after COVID-19, and they’ll look at using other job models they’ve seen during the pandemic, such as talent sharing and pay for 80% effort.
3 Separation of Critical Skills and Roles
To build a workforce that can survive after the pandemic and emphasise more on skills needed to generate the company’s competitive advantage and workflows that fuel it. Encourage employees to improve important talents instead of focusing on a particular future position. Employees in critical roles who lack essential abilities should get more assistance in their career advancement.
4 Transparency from Executives
CEOs and executive leaders are adviced on compensation cuts and make certain the financial costs are dispersed throughout the company rather than employees. More competent executives are required
5 Operational Resilience
In the future, it will be critical to consider how you’re recruiting and retaining people today because that could influence business outcomes tomorrow. Recruiting practices should evolve with changing times, but also stay true to your company culture so that you can create a workforce that is aligned with your organisational values.
[6] Unorganised sector during India Lockdown: Most affected is unorganised sector; it is 93% of the total workforce, 41 crore people lack economic security.(6)
- According to the report of Economic Survey released in 2019, the unorganised sectoraccounts for 93% of the total workforce of the country.
- This unorganised sector has a big hand in running the country’s economy, yet there is no concrete provision to protect it.
- There are 14 million people who go to other States only for wages or for works like construction.
- According to the report released by CII in the year 2011-12, about 16.35 crore people are employed in the unorganised sector in 7 major sectors of the non-agricultural sector of the country. Among these, the manufacturing sector in the first place and trade, hotel, and restaurant industry in the second place and construction sector in the third place.
After Covid–19 the construction sector, which witnessed suffered last year, has shown a significant increase in the gross value added in the last quarter when compared to the similar quarter of last financial year. The increase is almost twice the last year number, which is a good sign for the country. (By Simerleen Kaur- 20 July, 21, inventiva.co.in/stories/economy-workers)
[6.1] To sum up the evaluation of the eight principal sectors of the economy:
- Agriculture, forestry, and fishing are the only sectors with steady and growth. This is a good development for the economy, but revival cannot be agriculture-based under current circumstances. Manufacturing must come out of its slowdown.
- Financial, real estate and professional services are relatively less badly affected and should recover in reasonable time. But the recovery will be dependent on industrial and consumer demand recovery.
- The same is true for construction and internal trade, tourism, transport, communication sectors. Though construction shows signs of rebound, tourism is likely to suffer the most which is yet to back to normalcy. That may eclipse some possible gains in communication during the pandemic. However, till the detailed sectoral data are available, overall revival of this bouquet of some important large sectors of the economy will be dependent on real sector activities and how these sectors cope up with periodic disruptions due to the pandemic.
• Electricity, gas, water and public utility services and public administration, defence and other services are likely to get back to normalcy sooner than other sectors. But these cannot propel economy into the desired growth path alone, and once again long-term stability in these sectors will depend upon overall revival. (Post-Pandemic Economic Recovery: Seven Priorities for India, Abhijit Mukhopadhyay Observer Research Foundation.)
[7] Migrant Workers: There are an estimated 139 million migrants in the country, according to the World Economic Forum.Indian migrant workers during the COVID-19 pandemic have faced multiple hardships. With factories and workplaces shut down due to the lockdown imposed in the country, millions of migrant workers had to deal with the loss of income, food shortages and uncertainty about their future. Most migrants in the country originate from Uttar Pradesh and Bihar, followed by Rajasthan and Madhya Pradesh. The cities of Mumbai and Delhi attract the highest number of migrants.
As new Covid-19 infections in the country decline, migrant workers have started returning in droves to the textile exporting hubs in Tamil Nadu and Uttar Pradesh, bringing cheer to the industry which is seeing a 25-30% increase in export orders from the previous year. (July 21). So many companies offered free travel tickets,housing, and food to run the organisations.
Apparel exporters said they expect the order position to reach the pre-pandemic level by the third quarter of FY22.(ET: Jul 21, 2021)8.
The Survey done by the TOI that 9(1) those employees working remotely in hometown would need times to return to big cities as they must rent a house again (2) 70% of the lower paid (daily wage earners) have returned as to GIEL HR services. (3) Adecco India says that up to 15% of those who migrated to hometown may look at staying back permanently. (4) Over 60% describe that their hometown stays as temporary. (5) Overall, 70% of the migrant workforce is in junior to middle management level whereas 10-15% are in senior management. (6) In bigger cities, HR Firm Quess Corporation has recorded a rising hiring trends especially in Technical Sector (7) Hence fresh recruitments have started with skill labour force and if not, their skills are developing by imparting training as per the required level.
As on today (30th December`21) almost all the organised and decentralised sectors are working at full capacity except that of entertainment and travel industries. 10(Market research2)
In so many organisations, the white-collar jobs are still being performed “Work from Home”.Till the fear is persisting among the blue-collared people the 3rd wave of Pandemic.11(ET-09 Dec 2021)
Diamond exporters were expecting them to return after the kharif sowing was over. Before Covid broke out, there were 600,000 workers in Surat’s diamond trade. The number has fallen to around 475,000.
12(ET-14 Sep 2021),
[8] The Employment Opportunities after Covid – 19 13
The Following careers will be in high demand after Covid – 19 pandemics.
Undoubtedly, COVID-19 pandemic has adversely affected the health and economy of various countries from all over the world. Nevertheless, the government and various other leaders are also leaving no stone unturned to lessen the economic recession.
- Health Care Profession
We all are hopeful that this critical situation shall end soon, but who knows what happens next. That is why it is always better to prepare one for the known unknowns. The selection of the healthcare profession would be the ultimate career of any one and will be equally beneficial after this outbreak ends.
- Social Worker
After health care, the contribution of social workers also holds enormous credence. So, if anyone has decided to spend your life like a true warrior and if anyone is enthusiastic about helping people out, he/she can opt for an MSW online (Master of Social Work) degree program. It’s better to choose your career as a professional social worker because the community will need lots of rehabilitation work for the betterment of affected people after the ending of the critical situations.
- Tech and IT Jobs
The Information Technologies Department is always working hard to maintain the business activities by providing every single event to reduce the margin of error. Hence for any unfavourable happening in future these Information Technologies will be at top of the situation.
- Supply Chain Manager
They are at the service to provide food and the necessary items at doorstep and will remain in practice for ever. Hence a profession degree in Supply Chain Management enables any one to have a right professional choice.
- Artificial Intelligence Officer
As per the latest research study by The World Economic Forum, the ongoing terrifying situation has increased the demand for an artificial intelligence officer. Therefore, there will be more emerging jobs for them in the upcoming days as well. The selection of artificial intelligence jobs as one`s dream career requires exceptional skill set and efficiency levels to work incredibly.
In the world of technology and with a strong technical background one can be a very successful professional in this field.
- Digital/Social Media Marketing Manager
Currently, it is an era of digital transformation, creative content creation, and digital marketing. People find it more convenient to find-out everything online; that is why there is a consistent demand for social media marketers across the globe. Even in a country like India, now one can sharpen up your digital marketing skills by getting a professional degree from any digital marketing institute .
One of the most significant perks of choosing this career is that it has made remote-working easy, which is a desirable scenario in a lockdown situation. So, while being at home, one can still manage social media activities without any hurdles.
| Unemployment Rate 29 Dec 2021* |
||||
| India | 7.7% | |||
| Urban | 9.2% | |||
| Rural | 7.1% | |||
| Month | Unemployment Rate (%) | |||
| India | Urban | Rural | ||
| Nov 2021 | 7.00 | 8.21 | 6.44 | |
| Oct 2021 | 7.75 | 7.38 | 7.91 | |
| Sep 2021 | 6.86 | 8.62 | 6.06 | |
| Aug 2021 | 8.32 | 9.78 | 7.64 | |
| Jul 2021 | 6.96 | 8.32 | 6.34 | |
| Jun 2021 | 9.17 | 10.08 | 8.75 | |
| May 2021 | 11.84 | 14.72 | 10.55 | |
| Apr 2021 | 7.97 | 9.78 | 7.13 | |
| Mar 2021 | 6.50 | 7.27 | 6.15 | |
| Feb 2021 | 6.89 | 6.99 | 6.85 | |
| Jan 2021 | 6.52 | 8.09 | 5.81 | |
| Dec 2020 | 9.06 | 8.84 | 9.15 | |
| Statistical Profiles – Unemployment in India | |||
| [8.2] India Unemployment Rate – Historical Data | |||
| Year | Unemployment Rate (%) | Annual Change | |
| 2020 | 7.11% | 1.84% | |
| 2019 | 5.27% | -0.06% | |
| 2018 | 5.33% | -0.08% | |
| 2017 | 5.41% | -0.10% | |
| 2016 | 5.51% | -0.05% | |
| 2015 | 5.56% | -0.04% | |
| 2014 | 5.60% | -0.07% | |
| 2013 | 5.67% | 0.01% | |
| 2012 | 5.66% | 0.01% | |
| 2011 | 5.65% | 0.00% | |
| 2010 | 5.65% | 0.04% | |
| 2009 | 5.61% | 0.25% | |
| 2008 | 5.36% | -0.05% | |
| 2007 | 5.41% | -0.11% | |
| 2006 | 5.52% | -0.13% | |
| 2005 | 5.65% | -0.07% | |
| 2004 | 5.72% | -0.05% | |
| 2003 | 5.77% | 0.00% | |
| 2002 | 5.77% | 0.04% | |
| 2001 | 5.73% | -0.02% | |
| 2000 | 5.75% | -0.03% | |
| 1999 | 5.78% | 0.04% | |
| 1998 | 5.74% | 0.00% | |
| 1997 | 5.74% | -0.01% | |
| 1996 | 5.75% | 0.00% | |
| 1995 | 5.75% | 0.00% | |
| 1994 | 5.75% | 0.03% | |
| 1993 | 5.72% | 0.11% | |
| 1992 | 5.61% | 0.06% | |
| 1991 | 5.55% | 0.06% | |
In comparison, the world`s unemployment rate is 6.47% in the year 2020, that of 5.37% in 2019, 5.37% in 2018, 5.55% in 2017 which is not much different that of India. In India, the unemployment rate is 7.7% as 29th December 21(Net search) which has increased after Covid -19. Now after running the industries at full efficacy, it is expected to go down gradually.
McKinsey Global Institute says15“the pandemic accelerated existing trends in remote works, e – commerce, and automation, with up to 25% more workers than previously estimated potentially need to switch occupancy”
[8.3]The Industries are growing in the financial year 2021-22.
Over 17,200 new companies set up in India during April-June 202116(Press Trust of India | New Delhi Last Updated at July 19,21)
More than 17,200 new companies were set up in the country during April to June this year while a total of 13.7 lakh companies were active at the end of June, according to official data.
Minister of State for Corporate Affairs Rao Inderjit Singh told the Lok Sabha that incorporation of new companies and closure thereof is a routine affair depending upon the objectives of incorporating the company on a case-to-case basis.
“The number of new companies incorporated in the country under the provisions of the Companies Act, 2013 from April 2021 to June 2021 is 36,191 as compared to 18,968 number of new companies in the corresponding period of last year,” Singh, who took charge as the MoS at the ministry earlier this month, said in a written reply.
There was an increase of 17,223 new companies compared to the year-ago period.
As per data with the ministry, there were a total of 21,87,026 registered companies till June 30 this year.
In 2020-21, as many as 14,674 companies were closed, while the number stood at 70,972 in 2019-20. A total of 1,43,223 companies were shuttered in 2018-19.
“There is no verifiable information which says that the closure of company is due to lack of business acumen,” the minister said in another written reply.
He was responding to a question about the measures likely to be taken by the government to address the apprehension in some quarters of corporate world that this arrangement would weaken the position of promoters.
17.NIIT Limited announces Q1 (April – June 2021) Consolidated Results
| NIIT Limited
Consolidated Financials for Quarter ended June 30, 2021 |
| | |
| (in Rs. Crore) | Quarter ended
June30, 2021 |
Quarter ended
June30, 2020 |
YoY change |
| Net Revenue | 301 | 201.8 | 49% |
| EBITDA | 72.1 | 24.3 | 196% |
| EBITDA % | 24% | 12% | 1188 bps |
| Profit After Tax | 51.4 | 29.0 | 78% |
EBITDA means earnings before interest, taxes, depreciation, and amortisation (used as an indicator of the overall profitability of a business).
[8.4]29 Forecast for the future 2019-2026.It is a believe that during 2019- 2026, the India`s Textile Industry would target 8-9% CAGR. The ministry of Textiles has set and higher Export Target of $ 100 Billion over next five years and the Growth would help in generating 7.5 million to 10 million direct new jobs in Textile.
[8.4.1] Fabrics: Target of $4 Billion Jump by positioning India as a Regional Fabhub.
[8.4.2] Home Textiles: target of $4 billion increase by building an existing advantage to expand the Global Customer base.
[8.4.3] Tech. Textiles: Target a $ 1 billion jump building capacities in select key Sub segments on the back of potential Domestic Demand Growth.
As per the report of Wazir Advisors, the Indian Textile Industries worth US$140 billion is expected to grow at 11% CAGR to reach size of US$225 Billion by the year 2026. This growth is likely to come mainly from increased Exports.
[8.5] India’s core sector growth up 8.9% YoY in June 18(Business India today-10th August 21)
Production of coal, natural gas, refinery products, fertilisers, and steel, cement and electricity industries increased in June 2021 over corresponding period last year.
The growth rate of index of eight core industries during the April-June 2021-22 period stood at 25.3 per cent as compared to the corresponding period of last FY.
Among the core industries, coal production increased 7.4 per cent YoY in June, while crude oil production saw 1.8 per cent per decline. Natural gas and petroleum refinery production increased 20.6 per cent and 2.4 per cent, respectively.
Fertiliser’s production in June increased 2 per cent, while steel production increased significantly by 25 per cent YoY. Cement and electricity production increased 4.3 per cent and 7.2 per cent YoY, respectively, in June.
[8.6] Textile industry pegged to grow 300% over next 2 years despite COVID impact, says report.19(Business India TodayMonday, November 22, 2021)
After being hit hard by COVID-19, India’s textile industry is well on course on the road to recovery. During the pandemic, the domestic textiles and apparels industry slumped to $75 billion after peaking at $106 billion in FY2020. However, government initiatives to bolster the sector have raised hopes of the sector growing to US$300 billion by 2025-26, a growth of 300 per cent in the next 2 years.
There has been a remarkable turnaround in technical textiles. In terms of value, technical textiles imports exceeded exports by Rs 1,058 crore in FY20 while in FY21 exports exceeded imports by Rs 2,998 crore.
Indian technical textiles market could increase at a CAGR of 7.6 per cent in Asia-Pacific to reach $23.3 billion in 2027, up from $14 billion in 2020, says the report. Currently, Indian technical textiles constitute approximately 8 per cent of the global share.
Investment in value added services, e.g., marketing, warehouse rentals, logistics, courier, other product fulfilment costs constitute a pre-requisite for the sector going to scale.
The textiles and apparel (T&A) industry contribute 2.3 per cent to the country’s GDP, 13 per cent to industrial production and 12 per cent to exports.
[8.7] Some More Company News showing improvements.20
[8.7.1] 27/10/2021 · Net profit of Vardhman Textiles rose 699.55% to Rs 481.49 crore in the quarter ended September 2021 as against Rs 60.22 crore during the previous quarter ended September 2020. They have started units at Punjab, HP, MP with the accessibilities in Global Market.
[8.7.2] Reliance Industries Q2 Net Profit Jumps 46% To Rs 15,479 Crore
The net profit, on a YoY basis, rose to Rs 15,479 crore.IANSPublished: 22 Oct 2021, 10:11 PM IST
[8.7.3] · 09/08/2021. Indorama Ventures Plc (IVL), a global chemicals producer, saw its consolidated revenue grow by 52% year-on-year, and up 10% quarter-on-quarter, to US$3.56 billion. Indorama is expanding Spandex capacity with new plant at Baddi with the capacity of 75 MT/ Day.
[8.7.4] Trident Total Income – Sept 20=1171.44 and Sept 21 = 1662.57
[8.7.5] Welspun India Q1 Net profit jumps over four-fold to 222.9 crore. With growth of 47% Y-o-Y.
[8.7.6] 27/10/2021 · Raymond Q2 profit at Rs 56 crore; total income was up over two folds to Rs 1,583.26 crore. Raymond Ltd on Wednesday reported a consolidated net profit of Rs 56.15 crore for the second quarter end.
[8.7.7] Lakshmi Machine Standalone September 2021 Net Sales at Rs 792.42 crore, up 108.92% Y-o-Y. 26.07.2021. Lakshmi Machine Consolidated June 2021 Net Sales at Rs 457.62 crore, up 171.14% Y-o-Y. 29.10.21.
[8.7.8] The Arvind Mill’s revenue from operations during July-September 2021 stood at Rs 2,115.14 crore, a jump of 62.05 per cent as against Rs 1,305.17 crore in the year-ago period. They are planning Rs.400cr investment as part of PLI Scheme (Production Linked Incentives)
[8.7.9] TCS Net Profit Jumps 29% To ₹ 9,624 Crore in Second Quarter
TCS net profit surged 28.75% in its second quarter (Q2) profit — ended on September 30 — of the current financial year 2021-22 (FY22).
[8.7.10]ITC Net Profit Rises 14% To ₹ 3,697 Crore in September Quarter, Revenue Up 11%
ITC Limited Q2 Results: The cigarette segment reported a 10.2 per cent growth in revenue at ₹ 5,642 crore compared to ₹ 5,121 crore in the corresponding quarter last year.
[8.7.11] Indo Count Industries Ltd, a leading manufacturer & exporter of home textiles has entered into a Business Agreement with GHCL Ltd for Rs.576 crore at Vapi, Gujarat 29
[8.7.12] Grasim has filed the world`s 1st patient for developing pulp (to manufacture VSF) from bamboo-based Rayon grade Plant Outside India. 29
[8.7.13] Sangam Announces Rs. 1321 crore investments on MOU with Rajasthan Govt. It`s aim is to increase their cotton business by 47% and knitted fabric by 28% 29
[8.7.14] Supreme Non-woven Group is setting new benchmarks in nonwoven Industries who is having 14 plants across India.
[8.7.15] Sagar Expands Spinning & knitting capacity with 10,000 MT per annum with addition of 42000 Spindles.29
[8.7.16] Sutlej inaugurates new Plant for PSF using recycled PET at Himachal.29
[8.7.17] Page Industries (Jockey International) is set target of US$1 billion in sales by 2026. 29
[8.7.18] Khosla Profile diversified from Chips/yarn to made up under one roof for liquid Filtrations.29
[8.7.19] Beekaylon Industriesis offering value addition with focus on sustainability. They have undertaken massive expansion plan of US$50 million by adding CP with capacity 9000 MT /Month with Dope dyed, FDY, BCF, DTY, Air Texturization,Twisted,cabled(fancy yarn with multiple twist) yarn, heat set polyester filament yarn (Carpet Yarn).29
[8.7.20] RSWM invested INR 330 crore for the expansion of Denim fab, Cotton Melange yarn.
[8.7.21] Rajapayam Mills to invest Rs. 330 crorein weaving&fabric finishing.
[8.7.22] Park Nonwoven Planned massive production capacity of more than 100 MT/ Day in all kinds of Non -woven Productive Technologies like spunbonded, melt blown, chemical bond, needle punched, thermal bond with all kinds of technical coating
It is observed that after the setback in the year 2019 – 20 and that of 2020- 21, there is booming period in the Q2 of 2021-22 for almost all the industries
All these rises in sales, turnover and profit margins are in progress because of the opening of the market, trades, IT Sectors after the pandemic situations. The vacuum gaps are going to be fulfilled.
[8.7] Herewith we are putting the data of 24 Textile mills,Spinning as well as Composite Mills mainly confined to Northern India that shows the impact of the Pandemic situation.
| Yearly Results of some of the Northern India Customers year toyear | |||||||||
| Equity | Reserve | Turn over Rs.Crore | Net profit | ||||||
| ESTD | 19-20 | 20-21 | 19-20 | 20-21 | 19-20 | 20-21 | |||
| 1 | Vardhaman Textiles | 1965 | 57.56 | 5609 | 5975 | 6325 | 5788 | 546 | 350 |
| 2 | Trident Ltd | 1990 | 509.60 | 2457 | 2807 | 4724 | 4519 | 342 | 346 |
| 3 | RSWM Ltd | 1960 | 23.55 | 682 | 738 | 2771 | 2326 | 23 | 22 |
| 4 | Sutlej Group | 2005 | 16.38 | 955 | 984 | 2379 | 1861 | 36 | 10 |
| 5 | Sangam India | 1984 | 43.42 | 494 | 516 | 1783 | 1354 | 13 | 5 |
| 6 | Nitin Spinners | 1992 | 56.22 | 438 | 507 | 1438 | 1624 | 24 | 69 |
| 7 | Sportking India Ltd | 1989 | 3.48 | 249 | 353 | 1358 | 1355 | 12 | 85 |
| 8 | Banswara Syntex Ltd | 1976 | 17.12 | 325 | 340 | 1290 | 803 | 53 | 15 |
| 9 | Nahar Spg Ltd | 1980 | 18.03 | 801 | 880 | 2083 | 2112 | -53 | 41 |
| 10 | NIEL Ltd | 1983 | 39.84 | 606 | 694 | 1573 | 1418 | -25 | -9 |
| 11 | Winsome Textile | 1980 | 19.82 | 167 | 166 | 662 | 624 | -3 | -1 |
| 12 | Maral Overseas Ltd | 1989 | 41.51 | 42 | 56 | 676 | 632 | -15 | 13 |
| 13 | Deepak Spinners Ltd | 1982 | 7.19 | 136 | 152 | 464 | 397 | 15 | 16 |
| 14 | Reliance Chemotex | 1977 | 7.54 | 91 | 98 | 301 | 260 | 9 | 7 |
| 15 | Indian Acrylics | 1986 | 135.32 | 7 | 13 | 744 | 526 | 11 | 6 |
| 16 | Ginni Filaments Ltd | 1982 | 70.65 | 115 | 788 | 6 | |||
| 17 | DCM LTd | 1889 | 18.68 | -206 | -25 | -25 | |||
| 18 | TT Ltd | 1978 | 21.50 | 53 | 423 | -1 | |||
| SICK COMPANIES | |||||||||
| 19 | JCT Ltd | 1946 | 209.61 | -189 | 122 | 693 | 657 | -45 | 15 |
| 20 | Shree Rajasthan Syn | 1979 | 13.70 | -24 | -48 | 69 | 37 | -22 | -24 |
| 21 | Winsome Yarn Ltd | 1990 | 70.71 | -418 | 107 | -49 | |||
| 22 | Vardhaman Polytex | 1980 | 22.29 | -313 | 561 | 102 | |||
| (OSWAL GROUP) | |||||||||
| 23 | Alps Industries | 1962 | 39.11 | -615 | 313 | -115 | |||
| 24 | Jindal Cotex | 1998 | 45.00 | NA | |||||
| 22 SOURCES | www.Moneycontrol.com | ||||||||
The Table shows that comparing to 2019-20 to that of 2020-21, almost all the companies has shown less profit. The Nitin Spinner, Sportking, Nahar Spg. Maral overseas have made profit. It was because of the better quality, product diversification, Marketing Policy and Managerial capacity. The Sick mills are working butto come at level. The year to year 2021-22 has shown good profit to almost all companies which will be declared after March 22. (Market Survey).
The latest Market survey reveals that Vardhman is putting another 65510 spindles, Trident Budhni is putting 1 lakh spindles, RSWM is expanding with 72,000 spindles, Sangam is putting 30,000 spindles, Nahar Spinning is further adding 6000 spindles. All are doing very good. As a result, the LMW, Rieter are also doing well.
[9] ITF Times23shows in Q1, 21, the Export has gone up by 42% comparison to Cotton yarn,fabrics,Garments (Made up), H.L.Products( High quality fabrics, Industrial Fabrics, Technical Textile , Speciality fabrics etc) in comparison to Q1, 19 and that of Q1, 18. Similarly % of Exports has also increased by 18% in Q1, 21, comparison to Q1 , 19 and that of 18 too in case of Manmade Yarns, Fabrics and Made ups. Please refer Figure 3.
All the prospects are getting possible due to the increasing market demands, Management`s new policy decisions, Mission, Vision, and strategic Planning. Most of the managements Policy is to go for new Product developments, Modernisations, Skill work force, Strong R&D, and recruitment policies. Those who are lagging in those aspects are non-profit making organisations. However, the health care Industries always remain at Profitable stage including that of Pharmaceuticals.
[10] The job opportunities of the Professionals today (January 22) 24
It is found that since Sept-Oct `21 to till now there is a favourable time for the engineers in the IT as well as incore sectors. The Job opportunities were very less since pandemic was started i.e., June/July 19 and that of the whole year of 2020 because of the slack in the business and trades. Today apartfrom IIT/IIM/NIT/NIFT etc, the other Engineering Colleges can send their freshers in the industries with higher pay than that of previous years.
[10.1] One thing is noted that the MNC and that of IT sectors are in search of talents who are paying better renumeration to the deserving candidates. The Times of India dated 3rd January has published the same that in the 2-tier cities the renumerations are higher nowadays.
[10.2]25The Times of India published that “It is the best placement season ever at IIT. The reason is the same that the organisations need the talents to run their industries in much professional ways than earlier because of the sufferings.
[10.3] The Times of India dated 11th January 22 explains more job scopes Sept 2021.
[10.4]26. One reputed Engineering College in Maharashtra has proudly declared their Placements of 2021 & 2022 batches* with higher pays shown here.
*Total offers received= 800+* during August 20 to Dec 21
*Placement offers to 2022 batch till 22/12= 400+*
Highest package= 20 LPA
No. of companies who offered placement= 45
Number of drives going on= 10+*Mission 400 achieved*
*Total offers of 2021 batch= 407+*
* Recruiters*:
Cognizant, TCS, Persistent, Capegemini, Infosys, Wipro, Goldman Sach, Dassult systems, TIAA, Reliance, Welspun, RS Lab, NeML, Hexaware, Iauro, Burns Macdowell +++++
[10.5]There are so many such cases of Job opening now ( January 2022)
This new tendency has generated very recently. (1) There are other side also that some students of avg. merit are ready to join in lesser pay because of the poor job opportunities in certain places. The female students are mostly affected. (2) Most of the students are showing interest in Mktg, PPC, Merchandising, etc. rather than to join in Production and shop floor.
On conclusion it can be said that in the coming years there will be huge job opportunities with handsome pays as the industries are going for more and more innovative ideas, product developments for the higher profitability and to cope up with this, they prefer talented students.
[11] Road Ahead
India is working on major initiatives, to boost its technical textile industry. Owing to the pandemic, the demand for technical textiles in the form of PPE suits and equipment is on rise. Government is supporting the sector through funding and machinery sponsoring. Similarly, the Medical, Industrial Textiles and that of Smart Textiles are in high demand.
Top players in the sector are attaining sustainability in their products by manufacturing textiles that use natural recyclable materials.
The future for the Indian textiles industry looks promising, buoyed by strong domestic consumption as well as export demand. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with the entry of several international players like Marks & Spencer, Guess and Next into the Indian market.
High economic growth has resulted in higher disposable income. This has led to rise in demand for products creating a huge domestic market.
[12] The uncertainity prevails:
Covid 3rd wave may pull GDP growth down to 7%: Economist Abhijit Banerjee
Press Trust of India | Kolkata Last Updated on August 5, 2021, 22:35 IST27
Nobel laureate economist Abhijit Vinayak Banerjee apprehended that the impending third wave of the COVID-19 pandemic might adversely impact the GDP, and its growth rate might go down to 7 per cent, even below the IMF’s recent projection of 9.5 per cent.
The novel coronavirus has a new name and new features now. Omicron is a highly transmissible mutated version of the COVID-19 virus. It was first reported on 24 November 2021 in South Africa and is quickly becoming the dominant variant. It is now discovered in more than 57 countries.
After almost two years of restrictions, the world was beginning to relax. Business opportunities arise. People around the world are getting vaccinated at a record pace. In India, more than 10 million people have been vaccinated. The economy had picked up and things were about to get better, when the new COVID 19 mutant, Omicron destroyed the hope. (As published by Dinesh Exports28)
The Textile Industry is heavily dependent on MSMEs. They play a major role in producing items for domestic and international markets. At a time when the global supply chain is already impacted with COVID-19 and lockdowns, Omicron is a threat to the industry. The second wave in the month of April-June `20 had already crippled many businesses and workers. With great efforts and help from the government, it had started to pick up. Now the Omicron is expected to disrupt the industry again.
we can encourage all to follow necessary precautions and avoid the spread of the Omicron variant. There is a possibility for a third wave by February as WHO declared.
The TOI dated 7.01.22 published that the Economists forecast downgrade of GDP for the 3rdwave. Q4 -22 is expected to come down to 5.4% Y-o-Y as per the earlier estimation of 6.1%. See Figure 3
figure 3
The TOI dated 8.01.22 says there will be substantial decline in the debt -to-GDP ratio. But the progress is found in each industry in comparison to 2020-21 to that of 2021-22.
Let us hope for the better (This paper was written from November 21 to 1st week of January `22)
[13] Conclusion
Covid -19 created a setback for the industries, educational institutions,and in human life. Although the unemployment % shot up, migrant workers suffered a lot,but the normalcy has almost arrived gradually. The industries have taken its own shape, some of them have started making larger profits than the previous golden years before Corona. New and newer industries are coming up, some are expanding. The export potentially started growing. The education sectors were coming to near the normal but again it got disrupted (January 1st week`22). The scopes of the bright students started increasing who passed recently with new strategic planning of the industries in both IT & that of core sectors.
Now style of working of the industries will differ in comparison to 2018 / 19 that work from home will be at higher stage for the white-collar jobs. The more scopes are expected for health-relatedworkforce,digital & media, IT, supply chain managers, and Artificial Intelligent Officers.
The 3rd wave, Omicron has started the path of disruption in education, hotel and tourism sectors and no predictions can be made right now. The economists are forecasting again the downward tendency of GDP. Let us hope for the betterments.
[14] References
- Market Research
- Boston Consultancy Group report.
- Ministry of Statistics & Program implantations(MOPSI)
- Net Search
- Modern Recruiters Team
- Simuleen Kaur -20th July `21 inventiva.co.in/stories/economy-workers)
- (Post-Pandemic Economic Recovery: Seven Priorities for India, Abhijit Mukhopadhyay Observer Research Foundation.)
- Economic Times (ET) 21 July -21
- Times of India Survey (GIEL HR Services)
- Market Research -2
- ET 09.12.21
- ET 14.09.21
- Net search
- Statistical Profiles – Unemployment in India.
- McKinsey Global Institute
- PTI, New Delhi – 19th July 21
- NIIT
- Business India Today 10th August 21.
- Business India Today 22 Nov 21
- Net search
- TOI Report
- Market research, www. moneycontrol.com,
- ITF Times
- Market Survey
- TOI News
- SGGS, Nanded T&P publications.
- PTI Kolkata, 5th August 21
- Dinesh Export Publications
- The Textile Magazine December -21
