Aastha Spintex Ltd. IPO

India’s textile sector holds a strategically vital position in the national economy, making significant contributions to GDP, industrial output, exports, and employment. Its strength lies in a robust, integrated value chain—from raw fibre production to finished garments—backed ... by a large domestic consumer base, a skilled labour force, and strong policy support from the Government of India. Break-up of Indian Textile Industry 1. Cotton Yarn: Cotton textiles form the largest segment of the Indian textile industry, accounting for approximately 38–40% of the total market. This segment includes cotton yarn, woven and knitted fabrics, as well as cotton-based garments, catering to both domestic and international demand. India is the world’s Second largest producer of cotton, and cotton remains the most widely used fibre in the country, comprising nearly 60% of the total fibre consumption. The Cotton Corporation of India (CCI) plays a vital role in supporting this segment by procuring cotton under the Minimum Support Price (MSP) scheme to ensure price stability for farmers. 2. Technical textiles: Technical textiles constitute around 5–7% of the Indian textile industry and represent one of its fastest-growing segments. This category includes specialised fabrics and products designed for specific functional uses across sectors such as healthcare (Meditech), agriculture (agrotech), geo-engineering (Geotech), and protective wear. The segment is witnessing robust growth, with an expected CAGR of approximately 11–12% over the coming years, driven by rising domestic demand, infrastructure development, and increased industrial applications. The Government of India has launched the National Technical Textiles Mission (NTTM) to promote research, innovation, and investments in this space. Furthermore, the mandatory enforcement of Quality Control Orders (QCOs) for technical textiles has been a significant regulatory push, ensuring the production of highquality, globally competitive products. 3. Man-Made Fibre (MMF) Textiles: Man-Made Fibre (MMF) textiles account for approximately 18–20% of the Indian textile industry and include a wide range of synthetic fibres such as polyester, viscose, nylon, and acrylic yarns and fabrics. This segment is experiencing rapid growth, primarily driven by rising global demand for fast fashion, functional wear, and performance-oriented textiles. MMF-based products are gaining preference over natural fibres due to their versatility, durability, and cost-effectiveness. The Government of India has identified MMF as a key focus area under the Production Linked Incentive (PLI) scheme, aiming to boost domestic manufacturing and exports. 4. Home Textiles: Home textiles constitute around 10–12% of the Indian textile industry, with cotton-based products forming the backbone of this segment. Key offerings include cotton bed linen, bath towels, curtains, and other furnishings, which are globally recognized for their superior quality, durability, and affordability. India has built a strong export footprint in home textiles, particularly in cotton bed and bath linen, with the United States, United Kingdom, and Europe as its leading markets. As of 2023–24, the Indian home textiles market was valued at approximately USD 10 billion, with cotton products contributing the largest share. The segment is projected to grow at a CAGR of 7–8%, reaching nearly USD 16 billion by 2030, driven by global demand for natural fibres, growing consumer preference for sustainable products, and innovations in cotton-based fabrics and designs. 5. Silk, Wool and Jute: Silk, wool, and jute textiles collectively account for about 3–4% of the Indian textile industry and represent some of the most traditional and culturally significant segments. These sectors are largely dominated by handloom-based and heritage-driven production methods, often involving skilled artisans and small-scale units. Jute and silk production receive targeted support through various central government schemes aimed at enhancing productivity, ensuring sustainability, and promoting exports. These textiles are regionally concentrated, with jute being predominant in West Bengal, silk production flourishing in parts of South India such as Karnataka and Tamil Nadu, and woollen and handcrafted textiles being prominent in the Northeastern states. 6. Handloom and Handicrafts: Handloom and handicrafts account for approximately 2–3% of the Indian textile industry and play a vital role in rural employment and cultural preservation. These segments are deeply rooted in India’s artisanal traditions and are predominantly operated by small-scale weavers and craftspeople across the country. The government actively supports this sector through various marketing and skill development initiatives such as the India Handloom Brand and the SAMARTH scheme, which aim to enhance product quality, branding, and workforce capabilities. With growing consumer interest in sustainable and handmade products, there is an increasing focus on expanding domestic retail presence and tapping into international niche markets through dedicated e-commerce platforms and export facilitation. Read more