Equity research report on Ruby Mills Limited; Mararjee Goculdas Spg. & Wvg. Co. Ltd.

Abstract

The textile industry occupies a pivotal plate in the country’s economy. With 1173 mill units , about 3.9 miilion handiooms , over 1.2 registered powerlooms and thousands of garment, hosiery and prossesing units, the textile industry is the single largest industry in the country. It accounts for 20 per cent of the country’s industrial production and for 7 per cent of the GDP. It provides direct employment to about 18 million people and indirect employment to many more. It meets one of the basic necessities of an ever increasing population. it contributes almost 1\3 of the foriegn exchange earnings of the country through merchandise exports 3 in the total foren earnings of the manufacturing sector it has & share of 40 per cent. India’s per capita consumption of apparel fibre is far below world average and thus there is tremendous potential for growth. The country is self sufficient in raw materials and most items of capital goods needed by the textile industry. Textiles being a primary item of mass consumption , consumer demand in general is triggered by expansion in textile offtake. The industry has huge scope for earning foriegn exchange. There is no minimum efficient scale of production in the industry as one can see that both large sized companies as well as email manufacturers using powerlooms and handlocoms are doing weil.