List Of Best Textile Stocks in India 2024

The Indian textile sector has been stitching growth and weaving wealth for the past few years. This sector has a rich heritage of traditional craftsmanship. It is one of the oldest industries in India and has grown significantly with the introduction of modern machinery and technology. It accounts for a significant portion of GDP and generates employment. It is one of the largest sectors of the country and has diverse segments like cotton, silk, woolen, textiles and readymade garments.

In this blog, let’s look at the best textile stocks in India based on market capitalization and the reasons for investing in them.

Overview of the Textile Sector 

The Indian textile sector is one of the largest in the world and has a diverse range of segments, such as cotton, silk, wool, jute, and handloom textiles. The industry contributes around 2% to GDP and 12% of the country’s export earnings. Its key segments include: 

• Cotton Textiles: India is the largest cotton producer and has a robust cotton textile industry.
• Silk and Jute Textiles: India is also one of the largest producers of silk and jute.
• Synthetic Textiles: The country has a well-established synthetic fiber and yarn industry.
• Handlooms and Handicrafts: India has a rich tradition of handlooms and handicrafts, known for their uniqueness and quality.

Top Textile Stocks in India Based on Market Capitalization

The top textile stocks in India are:

The textile stocks have been listed in descending order based on their market capitalization in the table below:

Best Textile Stocks in India Based on Market Capitalization – An Overview

The best textile stocks in India are given below, along with a brief overview:

1. Page Industries Ltd.

Page Industries is the exclusive licensee of Jockey International in India, Sri Lanka, Bangladesh, Nepal, etc. It also holds the license for Speedo in India. Page Industries operates in the innerwear and leisurewear segments. It leverages a strong brand image, extensive distribution networks, and innovation in product design to maintain its market leadership. The company focuses on premium quality products and effective marketing strategies to drive sales.

2. KPR Mill Ltd.

KPR Mill is a vertically integrated textile manufacturer that produces yarn, fabrics, and garments and is also engaged in sugar production. KPR Mill operates across the textile value chain, ensuring cost efficiency and quality control. The company invests in expanding its production capacity for international markets. KPR Mill integrates sustainability practices into its operations.

3. Swan Energy Ltd.

Swan Energy is a diversified company with operations in textiles, real estate, and energy. Its textile division is involved in fabric production. Swan Energy’s textile segment focuses on high-quality fabric production for both domestic and international markets. The company leverages integrated production facilities to maintain efficiency and competitiveness.

4. Trident Ltd.

Trident Limited is one of India’s leading manufacturers of textiles and is part of the diversified Trident Group. Trident’s textile business encompasses yarn, terry towels, and bed linen. The company emphasizes vertical integration, operational efficiency, and a strong export orientation. Trident invests in advanced technology and sustainable practices to enhance productivity and to be environmentally responsible.

5. Welspun India Ltd.

Welspun India is one of the world’s leading home textile manufacturers, supplying its products to top retailers globally. Welspun’s business model focuses on innovation, quality, and sustainability. The company specializes in home textiles such as towels, bed sheets, and rugs, with a significant portion of its products exported. Welspun invests in technology and sustainable practices to enhance product offerings.

5. Vardhman Textiles Ltd.

Vardhman Textiles is one of India’s largest textile manufacturers, producing yarn, fabric, sewing thread, and garments. Vardhman operates India’s largest vertically integrated facility, controlling the entire textile value chain from spinning to garment manufacturing. The company focuses on high-quality products, innovation, and catering to domestic and international markets. It maintains a robust supply chain and invests in technology to improve efficiency.

7. Raymond Ltd.

Raymond is a leading Indian textile and apparel company renowned for suiting fabrics. It also has a significant presence in branded apparel. Raymond operates across textiles, apparel, retail, and FMCG segments. The company focuses on premium product offerings, brand equity, and an extensive retail network. It integrates design, manufacturing, and retail operations to ensure quality and responsiveness to market trends.

8. Garware Technical Fibres Ltd.

Garware Technical Fibres is a leader in technical textiles and synthetic cordage, serving various industries, including fisheries, shipping, and agriculture. The company specializes in high-performance textiles and synthetic fibers, focusing on product innovation, quality, and customized solutions for different industrial applications. Garware invests in R&D to develop advanced textile products.

9. Jindal Worldwide Ltd.

Jindal Worldwide is a leading textile company specializing in the manufacture of denim and other fabrics. Jindal Worldwide operates a vertically integrated textile manufacturing process, from spinning to fabric production. The company focuses on innovation, sustainability, and catering to global fashion brands. Jindal invests in advanced manufacturing technology to enhance quality and efficiency.

10. Siyaram Silk Mills Ltd.

Siyaram is India’s leading manufacturer of blended fabrics, garments, and home textiles. Siyaram’s business model involves manufacturing and marketing a wide range of fabrics and readymade garments. The company emphasizes brand development, quality, and a broad retail distribution network. Siyaram invests in marketing and distribution to expand its market presence.

Performance of Textile Stocks

Key Performance Indicators 

Benefits of Investing in Textile Stocks 

The benefits of investing in textile stocks are:

• Rising Income & Domestic Consumption: Increasing disposable incomes and a growing middle class are boosting demand for textiles.
• Export Advantage: India exports textiles to the US, EU, and Middle Eastern countries. Multiple streams of revenue result in stable profitability.
• Innovation and Technology: Technological advancements in textile machinery and digitalization improve productivity and quality.

Factors that affect the Indian Textile stocks

An investor must consider the following factors before investing in textile stocks:

• Raw Material Prices: Volatility in the prices of key raw materials like cotton can affect profitability.
• Global Competition: Indian textile companies face stiff competition from other Asian countries like China, Bangladesh, and Vietnam.
• Compliance and Sustainability: Meeting global environmental and social compliance standards is becoming increasingly important.
• Government policies: Any recent or upcoming policy changes affect the sector.
• Economic indicators: Overall economic conditions and their impact on demand for textile products affect the sector.

Future of Textile Industry

The future of the textile industry looks bright due to the following factors:

• Good growth potential: Rising income, changing lifestyle, and a large middle-class population drive the demand for textile products.
• Export Opportunities: India is one of the largest exporters of apparel and textiles globally. It has a strong demand for its products in the US, Europe and even the Middle East.
• Government support: The government supports this sector by introducing incentives that can increase the demand for textile products.
• Competitive Advantage: India has abundant raw materials and skilled workers for the textile industry.
• Technical Advancement: Indian textile companies are increasingly adopting modern technologies to improve efficiency and product quality.
• Booming Fashion Industry: The growth of the fashion industry and the increasing popularity of Indian designers contribute to higher demand for textiles.

Conclusion

The Indian textile sector is a significant sector of the Indian economy, marked by its diverse segments, including cotton, silk, woolen textiles, handlooms, and readymade garments. This sector is well positioned for sustained growth due to strategic investments and growing export opportunities. It presents vast opportunities and continues to weave a promising future. However, it is advised to consult a financial advisor before investing.

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