The textile industry is one of the largest sources of employment generation in the country. According to PIB data, the industry employs over 4.5 crore people directly, including a large number of women and rural populations. The government has taken a number of measures, including the production-linked incentive (PLI) scheme, to boost the textile sector and generate employment as a whole. The government is likely to tweak the PLI scheme to make it more attractive and bolster manufacturing in the labour-intensive sector.
Several textile firms have seen remarkable growth as they have benefited from government measures and added more product lines. Akshar Spintex, a yarn spinning mills company, has secured an international order worth Rs 171 crore.
"This Rs. 171 crore endeavour encompasses the provision of high-quality yarn to various fast fashion brands through a globally renowned client, known for its affiliations with prestigious fashion labels," it said in a statement. The order will not only have a positive impact on the revenue front but also help enhance the global presence.
Based out of Gujarat, Akshar Spintex shares on Wednesday soared 5 per cent to Rs 7.36 on BSE. The stock has shown robust performance, gaining 48 per cent in the past year. It has significantly outperformed its sector by gaining more than 110 per cent in two years, attracting investor attention. It has a market capitalisation of Rs 159 crore and the shares are currently trading at a P/E of 27.79 and a P/B of 3.73.
The market size of India's textile and apparel industry is projected to grow at a 10 per cent CAGR to reach $350 billion by 2030. The sector contributed about 2 per cent to India's GDP, and it is the second-largest employer after agriculture.
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