WOES OF HOME TEXTILE INDUSTRY

Exports account for 60 to 70% of the Indian home textile players, with the US, which is world’s largest market marking 58% of these exports. Now, reduced demand, sharp rise in raw material and logistics cost are hurting the home textile industry, according to a Crisil Ratings analysis of 60 major companies in this segment, which account 60% of the total revenue. Healthy cash accruals and debt reduction in the last over two years may uplift the companies. However, retailers are reducing their inventory and  consumers are cutting unnecessary expenditure amid inflation, which may hit global demand, says the analysis.