Recently many of the textile companies have popped up in one of the @screener_in filters. I thought about attempting to study the industry a bit. 
2/ First and foremost, let us have look is it worth spending time on the industry or not??
3/ Similar to the trend chemical and pharmaceutical industry, there is #CHINAPLUSONE trend is also playing out in the industry. (TailWinds)
- Trade war and the COVID disrupted the supply chain made brands think about alternate production houses.
- Trade war and the COVID disrupted the supply chain made brands think about alternate production houses.
4/ - Human rights violations in Chinas Xinjiang region lead America to ban cotton from the region.
- Government supports the industry via PLI schemes and the concept of Mega Investment Textile Park (#MITRA).
- Government supports the industry via PLI schemes and the concept of Mega Investment Textile Park (#MITRA).
5/ - Strength of massive raw material availability inside India. (Largest global cotton producer also 2nd largest in polyester & viscose)
- Availability of complete value chain.
- Availability of complete value chain.
6/ - Competitive position in cost of production, production in India is now cheaper than in China due to increased labour costs in China.
- Similar to chemicals, China's attention is shifting from cheap mass production to value-added products.
- Similar to chemicals, China's attention is shifting from cheap mass production to value-added products.
7/ - Quick urbanization and improved living quality of Indian population might consume more Home Textile and Apparels too.
- Many of the companies has already laid their plan to tap into the opportunity.
- Many of the companies has already laid their plan to tap into the opportunity.
8/ - Multiple Capex is going on, Mills are entering into the branding of their own products.
- Along with branding and integrating the value chain some players concentrate on the distribution networks to reach further into US and EU.
- Along with branding and integrating the value chain some players concentrate on the distribution networks to reach further into US and EU.
9/ - FTA Agreements: India-UK Free Trade Agreement might benefit the textile industry.
10/ Looking at the industry value chain. as below. 👇👇
11/ Process starts from the collection of Fibre, Which can be either natural (Cotton and Silk) or Man-Made Fibre (Polyester, Nylon).
12/ Spinning is the process to convert fibre to yarn through process of Spinning.
13/ Yarn produced feed to looms (different types according to the fabric and fibre) to produce the Fabric.
14/ Fabrics might undergo some processing before being ready to convert to the final product such as dyeing and bleaching.
15/ Then finally converted into the products such as clothes, carpets so on.
16/ As part of forward integration, companies are taking initiative in marketing and retailing as well. Example #FASO by #KPRMILL
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