The Indian home textile market should do increasingly well in future years as per several reports and experts. This promises to be welcome news for home textile manufacturers in India since production of home textile products took a knock during the COVID-19 lockdown and also the second and third waves of the coronavirus. India Ratings and Research or Ind-Ra has already stated in its report that textile demand will get a boost in FY2022-23 and this will only be supported by lower issues in logistics for meeting export demand. The report clearly states that demand in the domestic market has continued to go up by leaps and bounds since the second quarter of FY2021-22 after coming down slightly in the first quarter.
Higher demand will naturally be aided by lower issues with the supply chain. Cotton demand remained at peak levels throughout FY2020-21, which led to lower opening stocks for the new season. The prices have since risen, leading to the stock being piled up by spinners. Demand for man-made fibre has also increased due to the higher cotton prices and caused a moderate demand shift at some levels. There is soaring home textile demand in the Indian market according to the report. The cotton yarn segment also saw volumes increasing handsomely, while export volumes in FY2021-22 will be much higher than the last two financial years.
Several home textile manufacturers in India have been accelerating their growth plans in recent years. Welspun Group's home textiles brand, Welspun India, is expected to achieve a target of $1 billion. Welspun India saw revenues going up to roughly $327 million while announcing that the global home textiles business is attempting to touch $1 billion in sales as well. For the first 9 months of the financial year, sales went up by 35.8% to stand at roughly $955 million.
The home textile segment has seen demand remaining at robust and strong levels. Manufacturing and production capacities have remained high over a period of nine months. Bath linen manufacturing functioned at 90% capacity, an increase from 79% in the earlier duration. Bed linen witnessed production increasing to 100% as compared to 80% earlier while production went up from 61% to 83%. The production rates for the duration stood at 82% for the advanced textiles segment as per various reports. Welspun India is also looking at scaling up its overall production presence with higher capacity in production of rugs, towels, carpets and bedding. Hence, the home textiles segment, which is known for its robust nature, should bounce back in the coming duration.