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Major retail group Mosaic plans to close all its remaining stores under the Millers and Noni B brands in Australia resulting in the loss of 933 jobs. This follows earlier closures of other Mosaic-owned chains, Katies and Rivers, bringing the total job losses to over 1,500.
KPMG, the receivers for Mosaic, confirmed the unsuccessful search for a buyer for the remaining brands. Filing for bankruptcy in October with $249 million in debt, the group employed over 2,500 workers across 651 stores in Australia and New Zealand. The fallout extends beyond Australia's borders. Garment factories in Bangladesh, reportedly owed $30 million by Mosaic, now face potential default, jeopardizing thousands of jobs.
Overseeing the administration process, FTI Consulting has not commented on whether creditors, including employees owed wages and entitlements, will receive compensation. An official statement from FTI noted they're focused on investigations and reporting to creditors, with a second creditors' meeting scheduled for May.
Mosaic's collapse reflects a broader trend of Australian businesses struggling with rising costs. Creditor Watch reports a 40 per cent increase in insolvencies compared to pre-pandemic levels, with business failures at their highest rate since October 2020. Along with food and beverage and administrative services, the retail sector has been particularly affected. Cautious consumer spending, rising interest rates, and economic strains are putting immense pressure on retail businesses.
Experts suggest that increased voluntary busitess closures may foreshadow further layoffs across Australia. Indeed data from November 2024 indicates that approximately 1.4 per cent of the Australian labor force has been laid off or made redundant. The Mosaic collapse serves as a stark example of the challenges facing the retail industry and the potential for widespread job losses.
New Economic Survey by India advocates for a strategic overhaul of the textile sector, aligning with the global surge in demand for man-made fiber (MMF) products.
Currently, India constitutes only 9.2 per cent of global MMF production . The country trails significantly behind global leaders like Vietnam, China, and Taiwan. A shift to MMF will help boost India's textile exports, as MMF dominated 77 per cent of global fiber consumption in 2024, while cotton accounted for only 22 per cent, says the survey.
Further, the survey highlights concerns about the cotton segment's complex value chain and lack of localization, hindering cost competitiveness. It urges the development of vertically integrated ‘fiber-to-fashion’ firms, similar to those in China and Vietnam, to streamline production. India's cotton production, concentrated in Gujarat, Madhya Pradesh, and Andhra Pradesh, involves a convoluted process of transporting raw materials to Tamil Nadu for yarn production, then back to Maharashtra and Gujarat for weaving. This contrasts sharply with the efficient, localized production of competitor nations.
Furthermore, the survey points out, complex customs procedures and pre-shipment inspection requirements create logistical bottlenecks and increase costs for Indian textile exporters, putting them at a disadvantage compared to China and Vietnam.
While India holds a comparative advantage in cotton-based products, global demand has gravitated towards MMF, used in everything from athleisure wear to technical textiles for aerospace and automotive industries. India's textile export basket is heavily skewed towards cotton, with cotton and cotton-based products comprising eight of the top ten textile exports.
Technical textiles present another promising growth area, notes the survey. India's technical textile sector, currently the fifth largest globally, is rapidly expanding, with a market size of $26.8 billion in FY24. India is a net exporter of technical textiles, with exports valued at $2.58 billion in FY24.
The survey acknowledges that the dominance of micro, small, and medium enterprises (MSMEs) limits scale and efficiency, while the sector's fragmented nature increases logistical costs. Limited foreign direct investment has hampered technological advancements, leading to reliance on imported machinery. A significant skills gap also restricts productivity and innovation.
The textile and apparel industry contributes 2.3 per cent to India's GDP, 13 per cent to industrial production, and 12 per cent to exports, employing over 45 million people. In 2023, India's textile exports reached $34 billion, with apparel accounting for 42 per cent, raw and semi-finished materials for 34 per cent, and finished non-apparel goods for 30 per cent. Europe and the US are the primary destinations for India's apparel exports.
Despite being a significant player, India's global apparel market share of 2.8 per cent in 2023 pales in comparison to China's 30 per cent, Bangladesh's 9 per cent, and Vietnam's 7 per cent. By embracing MMF, streamlining production, and addressing the challenges faced by MSMEs, India aims to capture a larger share of the global textile market.
During the Union Budget for 2025-26, Nirmala Sitharaman, Finance Minister, announced a 5-year mission to enhance cotton production, with a specific focus on extra-long staple (ELS) cotton. India heavily relies on imports for ELS cotton fibers, which are longer than 35mm and used in high-quality fabrics.
The mission will provide farmers with cutting-edge science and technology support to increase income and ensure a consistent supply of quality cotton, revitalizing India's traditional textile sector. This initiative comes as India faces challenges in the global textile market.
In September 2024, the World Bank reported that India's share of global exports in labor-intensive sectors, including apparel, leather, textiles, and footwear, has declined. Meanwhile, countries like Bangladesh, Vietnam, Poland, Germany, and France have increased their global export share in these job-creating sectors by up to 2 per cent between 2015 and 2022.
India's textile and garment exports have stagnated at around $35 billion, while Vietnam and Bangladesh have gained market share, aided by free trade agreements (FTAs) and Least Developed Country (LDC) status, which provide a 10-15 per cent duty concession in Western markets. By boosting domestic cotton production, particularly ELS cotton, India aims to improve its competitiveness in the global textile industry.
The Union Budget 2025-26 introduces the Cotton Productivity Mission, a five-year plan to increase India’s cotton yield from 450-500 kg to 1,000 kg per hectare. With advanced technology and scientific support, the initiative aims to boost farmer income and secure raw material supply for the textile and apparel sector.
Additionally, income tax revisions and exemptions are expected to drive consumption and economic growth. Coupled with potential RBI rate cuts, these measures will enhance spending power and demand across industries.
Prabhu Dhamodharan, Convenor of the Indian Texpreneurs Federation (ITF), welcomed the initiatives, stating that they align with the industry's long-term vision. The focus on cotton productivity and economic stimulus will strengthen India's textile sector and boost its global competitiveness.
Clothing Manufacturers Association of India (CMAI) President Santosh Katariya has welcomed the Union Budget 2025-26, citing key benefits for the textile sector.
While no direct incentives were announced, he highlighted the boost for MSMEs, especially micro enterprises, and the launch of the Cotton Mission as significant steps. Measures to enhance export competitiveness, domestic manufacturing, and ease of doing business were also praised.
On the consumption front, Katariya noted that reduced income tax rates would increase disposable income, potentially driving higher demand. Adjustments in TDS and TCS limits are also expected to support consumption. Additionally, the reduction in basic customs duties on select textile machinery is seen as a positive move.
However, he cautioned that any hike in GST rates on textiles and apparel could offset these advantages. "A big thumbs up to the budget, provided there are no surprises in the fine print," he concluded.
The Union Budget 2025 prioritizes national manufacturing across industries, offering a significant boost to the domestic textile sector, says Sanjay Jain, Group CEO of PDS Ltd. He highlights that PDS, aligning with the Viksit Bharat strategy, recently acquired a 55 per cent stake in Knit Galley India Pvt Ltd to strengthen manufacturing capabilities and enhance sourcing opportunities.
Jain also welcomes the government's five-year mission to improve Extra Long Staple (ELS) cotton productivity, which will enhance raw material quality, support traditional textiles, boost exports, and reduce import dependence.
He emphasizes that these reforms position India as a global manufacturing hub, reinforcing the Make in India initiative. “At PDS, we are committed to advancing sustainable manufacturing while leveraging India’s growing potential,” Jain adds.
The Budget 2025’s focus on strengthening domestic production marks a strategic shift toward self-reliance and global competitiveness in the textile industry.
Italian denim brand Cycle aims to double revenues to €5 million by FY26, further expanding these to €10 million in coming years.
The brand also plans increase its turnover to €90 million by FY24-end, achieving 20 per cent of it through exports. The Numero 8-owned will expand both its domestic as well as international operations by focusing on the denim segment, and launching new knitwear and women’s accessories. Another of its plans includes expanding into the men’s segment in the medium term.
Founded in 2000, Cycle currently has 350 stores, most of these located in Italy. The company also has a few direct customers in Europe and Korea and plans to launch a whole sale in Japan soon.
The brand has developed a new knitwear collection for the winter season. Made in Italy, with 70 per cent of it manufactured by workshop in Veneto, the collection boasts of environmentally-friendly fabrics and washes. Besides collaborating with various Italy-based laundries for its denim washes, the company has also developed new sustainable and recyclable packaging for this collection, notes Enrico Spinazze, Founder, Numero 8.
Aiming to grow at all levels, Numero 8 also plans to expand its workforce by adding new employees, both at the commercial level for foreign development and at the internal level, adds Spinazze.
At the last Pitti Uomo show, Cycle showcased its range of denim jackets and trousers with a used look obtained by processes such as waxing. Treated to create irregular aged effects, these garments are available in grey-black and brick variants.
The brand has also introduced a light blue denim jacket with horizontal stitching for the season. Available with a cold-proof padding for both male and female customers, the jacket is suitable for both autumn and winter seasons.
Cotton production in India is expected to increase by 2 lakh bales to 304.25 lakh bales in 2024-25. This rise will mainly be driven by a higher-than-expected production in Telangana, as per a report by the Cotton Association of India (CAI). This revision in crop production estimates have also caused cotton prices to decline by 0.91 per cent to Rs 52,370.
Cotton production in North India is projected to decline by 3.5 lakh bales during the season while consumption is forecasted to increase by 2 lakh bales to 315 lakh bales. Supported by a higher output in India and Argentina, global cotton production is projected to 117.4 million bales in 2024-25, as per the WASDE report.
Meanwhile, cotton kapas arrivals in North Indian states of Punjab, Haryana, and Rajasthan declined by 43 per cent drop in kapas arrivals until November 30 compared to last year. This led some farmers to withhold supply resulting in raw material shortages for ginners and spinners in Punjab. Despite these factors, cotton prices in India continue to remain stable due to an increased demand from the garment industries and strong export orders. As of December-end, total cotton supplies in India stood at 176.04 lakh bales, with consumption reaching 84 lakh bales and exports at 7 lakh bales.
The Economic Survey 2024-25, released ahead of the Union Budget, presents a comprehensive analysis of the Indian economy, with a dedicated section on the textile and apparel industry.The survey acknowledges the sector's significant contribution to GDP, employment, and exports, but also highlights the challenges it faces in the global market.
Key highlights
Global market share: The survey reveals that India's textile export market share in 2023 was a mere 2.8 per cent, significantly lagging behind China (30 per cent), Bangladesh (9 per cent), and Vietnam (7 per cent). This underscores the need for India to enhance its competitiveness in the global arena.
Complex procedures: The survey points out that complex procedures and pre-shipment inspection certificates hinder the growth of textile exports. These bureaucratic hurdles increase costs and slow down logistics, making it difficult for Indian exporters to compete with their counterparts in other countries.
Decline in exports: After reaching a peak of $44.4 billion in FY22, India's textile and apparel exports have declined to $35.8 billion in FY24. This decline is attributed to various factors, including global economic slowdown, rising costs, and procedural bottlenecks.
Shift to MMF: The survey emphasizes the global shift towards man-made fibers (MMF) and suggests that India should focus on increasing its MMF production to capture a larger share of the global market. Currently, MMF constitutes 77 per cent of global fiber consumption, while cotton accounts for only 22 per cent.
Need for simplification: The survey calls for simplification, consolidation, and elimination of complex procedures that burden textile exporters. It suggests that addressing these challenges can significantly reduce costs and improve efficiency, making Indian exporters more competitive.
Data and Statistics:
Metric Data India's Textile Export Share 2.8% (2023) China's Textile Export Share 30% (2023) MMF Share in Global Consumption 77% (2024) India's MMF Production Share 9.20% Textile & Apparel Exports $35.8 billion (FY24)
Challenges and recommendations
Complex procedures: The survey recommends simplifying export procedures and eliminating unnecessary documentation to reduce costs and delays.
MMF focus: The survey suggests promoting MMF production through investments in research and development, technology upgrades, and skill development.
Infrastructure development: The survey highlights the need for improved infrastructure, including logistics, transportation, and warehousing, to facilitate smooth movement of goods.
Skill development: The survey emphasizes the importance of skill development programs to enhance productivity and innovation in the textile sector.
Trade agreements: The survey suggests exploring new trade agreements and strengthening existing ones to gain better access to international markets.
Case studies
The Economic Survey cites the success stories of countries like China and Vietnam, which have achieved significant growth in textile exports through strategic policies and investments. These case studies highlight the importance of government support, infrastructure development, and focus on MMF production.
Critical analysis by industry experts
Industry experts have lauded the Economic Survey for its comprehensive assessment of the textile and apparel industry and its focus on addressing the challenges faced by the sector. However, some experts have also pointed out certain areas that need further attention.
Focus on MSMEs: While the survey acknowledges the dominance of MSMEs in the sector, some experts believe that it should have provided more specific recommendations for promoting their growth and competitiveness. They suggest that MSMEs need targeted support in terms of technology upgrades, access to finance, and marketing assistance. (Source: "Economic Survey 2024-25: A Critical Analysis of the Textile Sector" - Textile Association of India)
Sustainability: The survey briefly mentions the need for sustainable sourcing, but experts believe that it should have emphasized this aspect more strongly. With increasing global focus on sustainability, Indian textile exporters need to adopt eco-friendly practices to remain competitive. (Source: "Sustainability in the Textile Industry: Challenges and Opportunities" - Confederation of Indian Textile Industry)
Labor laws: Some experts have pointed out that the survey does not address the issue of labor laws, which are considered to be complex and restrictive in India. They suggest that simplifying labor laws can help attract more investment and boost employment in the sector. (Source: "Impact of Labor Laws on the Textile Industry" - Indian Texpreneurs Federation)
Aligning with shift towards MMF, a critical need
"India needs to align with the global shift towards MMF to capture a larger share of the international textile market ", says Economic Survey 2024-25. The Economic Survey 2024-25 provides a comprehensive overview of the textile and apparel industry in India. While it acknowledges the challenges faced by the sector, it also offers valuable recommendations for boosting its growth and competitiveness.
Home textiles major Welspun Living reported a 31 per cent decline in consolidated net profit to Rs 123 crore ($14.2 million) in Q3, FY25 ending December 2024, compared to Rs 179 crore in the same quarter last year.
From Rs 2,411 crore in Q3, FY24, Welspun’s revenue increased to Rs 2,490 crore in Q3,FY25. The company’s expenses also heightened to Rs 2,369 crore, compared to Rs 2,214 crore in the same period a year ago.
According to BK Goenka, Chairman, Welspun Group, says, the company achieved a 3 per cent growth in consolidated revenue in Q3, FY25. Welspun Living remains committed to redefining home solutions sustainably while establishing itself as the 'FMCG of Textiles,’ he adds.
The company’s core growth areas including global brands, domestic consumers, advanced textiles, and flooring, grew by 10 per cent in 9M FY25, providing a competitive edge. The company’s domestic consumer business increased by 2 per cent Y-o-Y despite inflation and cautious spending, while the ‘Welspun’ brand reinforced its leadership position in hometexitles with a 8 per cent Y-o-Y growth, he adds.
A part of the Welspun Group, Welspun Living is among the world's largest home textile manufacturers, with a strong presence in the bed, bath, and flooring segments.
