About Neelam Linens and Garments Limited

Neelam Linens and Garments Limited operate as a soft home furnishing company based out of Maharashtra, India, extending their services to a global clientele, including USA, Australia and Far East. They specialize in the processing, finishing and supplying of bedsheets, Pillow cover, Duvet Cover, Towels, Rugs, Doher, Shirts & Garments predominantly for discounted retail outlets. They source surplus or slightly imperfect fabric from the domestic market, applying value-added services such as designing, digital printing, dyeing, stitching, embroidery, and other enhancements. Subsequently, they distribute these refined products to discounted retail outlets in diverse countries. 

The business are divided into two parts as under :-
1. Processing and trading of products
2. Sale of licenses

The Company also earns revenue from sale of import licenses. An import license is a governmental authorization required for the importation of goods that are not freely importable. Licenses of this form restrict the number of items entering a country to exactly the requirements of those products and the country’s customs regulations. The government primarily offers the licenses as a financial incentive to exporters, and once granted, they become commodities. Import licenses, which grant the holder the right to import goods that may be restricted or regulated, are considered a service when they are sold or transferred. 

The sale of import license received from government as a part of incentive includes RODTEP (Remission of duties and taxes on export product) and ROSCTL (Rebate of state & central Taxes and Levies). These e-scripts are issued by customs in respect of Remission of embedded local duties & taxes levied on FOB value of the exported goods. As the Company does not import any type of goods, they sale the same to the importer available in the market at a reasonable discount.

As of June 30, 2024, the Company had an employee base of 56 employees. The Banker of the Neelam Linens and Garments is State Bank of India.

Textiles and Apparel industry in India
India is the world’s second-largest producer of textiles and garments. It is also the sixth-largest exporter of textiles spanning apparel, home and technical products. India has a 4.6% share of the global trade in textiles and apparel. India is the world’s 3 rd largest exporter of Textiles and Apparel. The textiles and apparel industry contributes 2.3% to the country’s GDP, 13%to industrial production and 12% to exports. The textile industry has around 45 million workers employed in the textiles sector, including 3.5 million handloom workers. India’s textile and apparel exports (including handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY. The Indian textile industry has made a mark in the world with its innovative and attractive products. Total textile exports are expected to reach US$ 65 billion by FY26. The Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. The ₹ 10,683 crore (US$ 1.44 billion) PLI scheme is expected to be a major boost for textile manufacturers. The scheme proposes to incentivize MMF (man-made fibre) apparel, MMF fabrics and 10 segments of technical textiles products.

Exports of textiles Ready-made garment (RMG) of all textiles, cotton yarns/fabrics/made-ups/handloom products, man-made yarns/fabrics/made-ups, handicrafts excl. handmade carpets, carpets and jute manufacturing. including floor coverings) stood at US$ 44.4 billion in FY22. India’s RMG exports are likely to surpass US$ 30 billion by 2027, growing at a CAGR of 12-13%. During (AprilMarch) 2022-23, the total exports of textiles stood at US$ 36.68 billion. Textile exports reached US$ 44.4 billion in FY22, a 41% YoY growth.

NEELAM LINENS AND GARMENTS LIMITED COMPETITIVE STRENGTHS 
1. Purchase of higher quality thread count fabric at lower price.
2. Experienced promoters and dedicated employee base
3. Infrastructure and Integrated capabilities to deliver quality Products 

NEELAM LINENS AND GARMENTS LIMITED STRATEGIES
1. Selling directly to customers via their own stores.
2. Continue improving financial performance through focus on operational and functional efficiencies
3. Continue to add to product portfolio by introducing new products.
4. Improving & maintaining functional efficiencies

NEELAM LINENS AND GARMENTS LIMITED RISK FACTORS & CONCERNS
1. The business predominantly focuses on bedsheets, which makes them particularly susceptible to fluctuations in demand.
2. The majority of the business of sale of licenses of the company occurs from the trading activity.
3. A significant portion of their sales are derived from India.
4. They have only one production unit that is located in Bhiwandi.
5. Their production processes depend on the outsourcing of dyeing services, and they operate without any agreements.