Growth drivers like rising per capita income, rapid urbanisation and an expanding real estate sector, along with heightened awareness of hygiene and shifting consumer preferences are expected to contribute to revenue growth in FY25.

Following the setbacks of FY23, the industry, accounting for nearly 7-8 per cent of the global home textile market, is now on a recovery path as witnessed in FY24, the rating agency noted.

Carpets, rugs, and furnishing articles make up approximately 30-32 per cent of total home textile exports, followed closely by bed linen and kitchen/table linen.

Given the healthy performance of the major home textile players and their plans for capacity expansion, the credit profile of Indian home textile companies is expected to remain robust, supported by strong balance sheets, the rating agency said in a release.

The global home textile industry, valued at $122 billion in 2023, is envisaged to reach $134 billion by the end of 2024, and expected to grow at a compounded annual growth rate of 5-5.5 per cent to around $185 billion by 2030.

China leads in home textile exports, followed by India and Turkiye, with the United States being the largest importer for home textile products.

Fibre2Fashion News Desk (DS)