About Silky Overseas Limited

BUSINESS OVERVIEW

Silky Overseas is a manufacturer and supplier of bedding products, including blankets, baby blankets, comforters, bedsheets, and curtains. The company operates a fully integrated production facility, encompassing knitting, dyeing, processing, printing, and packaging, ensuring high-volume output with consistent quality, comfort, and durability.

Products are manufactured based on custom specifications, enabling service to a diverse customer base across B2B and D2C segments. The facility holds ISO 9001:2015 certification from the United Registrar of Systems, signifying adherence to international quality standards.

Sales are primarily organic, driven by online orders through an efficient and user-friendly e-commerce platform, including major portals like Flipkart (with over 40,000 blankets sold), Amazon, Ajio, Walmart, and the company’s own website www.silkyoverseas.com. One of the bestselling products received over 21,000 customer reviews.

The company maintains a broad product portfolio, allowing it to serve varied market demands while reducing dependence on a limited customer base. The business is expanding its domestic footprint, with major sales from Haryana, and distribution in West Bengal, Assam, Punjab, New Delhi, Bihar, among other states.

To support growth, the focus is on enhancing product range, expanding the client base, and strengthening presence in the e-commerce and D2C sectors, which are witnessing rapid year-on-year growth in India.

Operations are based at Village Jawahara, Pardhana Road, Tehsil Khanpur Kalan, District Sonipat – 131305. While major products are manufactured in-house, some items are procured, then undergo thread cutting, quality checks, and packaging before being sold.

The company’s competitive edge lies in its customer-centric approach, cost-effective pricing, timely delivery, customizable product sizes, and a trained team dedicated to fulfilling special quality requirements. As on May 31, 2025, the company have total 135 employees on payroll. The Banker to the company is Bank of Baroda.

INDUSTRY ANALYSIS

Textiles Industry in India: A Sector Overview

India’s textile industry is one of the oldest and most diverse sectors in the economy, dating back centuries. It spans a broad spectrum—from traditional hand-spun, hand-woven operations to modern, capital-intensive textile mills. The industry draws strength from a robust raw material base, including natural fibres such as cotton, jute, silk, and wool, as well as synthetic and man-made fibres like polyester, viscose, nylon, and acrylic.

The decentralized power loom, hosiery, and knitting segments form the largest portion of this sector. Its close ties to agriculture, particularly for cotton, along with India’s cultural legacy in textiles, give this industry a distinctive identity.

Growth Drivers and Government Support

India's textile sector caters to a broad market—both domestic and international—offering a wide range of products. As per Crisil Ratings, the organised retail apparel segment is expected to grow by 8–10% in FY25, buoyed by rising demand due to a favourable monsoon, declining inflation, and increased spending during festive and wedding seasons. Affordable, trend-driven fashion remains a major catalyst for growth.

The Government of India has introduced several initiatives to enhance industry growth and attract private investment:

• Scheme for Integrated Textile Parks (SITP)

• Technology Upgradation Fund Scheme (TUFS)

• Mega Integrated Textile Region and Apparel (MITRA) Parks

Market Size and Global Standing

India is the third-largest exporter of textiles and apparel globally and ranks among the top five in various textile segments. The domestic textiles and apparel market is projected to grow at a CAGR of 10% and reach US$ 350 billion by 2030. Currently, the industry contributes:

• 2.3% to India’s GDP

• 13% to industrial output

• 12% to total exports

By the end of the decade, its GDP contribution is expected to double to around 5%.

In June 2024, India’s textile manufacturing index reached 106, signaling continued recovery post-pandemic. The global apparel market is set to grow at an 8% CAGR, reaching US$ 2.37 trillion by 2030, while the global textile and apparel trade is expected to touch US$ 1.2 trillion.

Segmental Outlook

• Home Textiles: CAGR of 8.9%, projected to grow from US$ 10.78 billion (2023) to US$ 23.32 billion (2032)

• Technical Textiles: Growing at 10% CAGR, with India ranked 5th globally in this segment

• Medical Textiles: Market for drapes and gowns to grow from US$ 9.71 million (2022) to US$ 22.45 million (2027) at a 15% CAGR

• Composites: Market expected to reach US$ 1.9 billion by 2026 with 16.3% CAGR

• Automotive Textiles: Market to expand to US$ 3.7 billion by 2027 from US$ 2.4 billion (2020)

• Industrial Textiles: Projected to grow from US$ 2 billion to US$ 3.3 billion by 2027, at an 8% CAGR

India remains the world’s largest cotton producer, with 2023–24 production pegged at 31.6 million bales. By 2030, output is expected to reach 7.2 million tonnes (~43 million bales), with an estimated global market share of 4.6–4.9%, valued at over US$ 30 billion.

In FY24, total fibre production was 2.15 million tonnes, and yarn production stood at 5,185 million kg. The sector is forecast to grow from US$ 138 billion to US$ 195 billion by 2025.

Export Performance

• FY24 textile exports (including handicrafts): US$ 35.90 billion

  • Ready-made garments: US$ 14.23 billion

  • US accounted for 32.7% of total textile exports

• FY25 (April–June) textile exports: US$ 9.17 billion

  • Garment exports: US$ 2.24 billion

Employment and Future Prospects

The sector employs approximately 4.5 crore people, including over 35 lakh handloom workers. Growing disposable incomes, changing consumer preferences, and demand from sectors like housing, healthcare, and hospitality are expected to drive future growth.

Sustainability is also becoming a key theme, with leading firms investing in natural and recyclable materials. With rising demand for technical textiles, especially post-pandemic, India is making significant strides toward becoming a global textile leader.

---

Indian Manufacturing Industry: A Growth Catalyst

India's manufacturing sector has emerged as a cornerstone of the country’s economic development, fueled by robust performance in industries such as automotive, engineering, pharmaceuticals, consumer durables, and electronics. Historically contributing 16–17% to the GDP, the sector is now poised for accelerated growth.

Technology and Innovation

Digital transformation and automation are redefining Indian manufacturing, fostering improved productivity and global competitiveness. Advanced technologies are enabling innovation and streamlining processes, laying the foundation for India’s transition toward Industry 4.0.

In March, India’s manufacturing PMI surged to a 16-year high of 59.1, supported by increased output, orders, and employment.

Strategic Initiatives and FDI

Key government initiatives include:

• National Manufacturing Policy (aims for 25% of GDP from manufacturing by 2025)

• Production-Linked Incentive (PLI) Scheme, launched in 2022, to bolster domestic manufacturing

• SAMARTH Udyog Bharat 4.0 for advancing capital goods competitiveness

Foreign Direct Investment (FDI) into manufacturing reached US$ 165.1 billion, a 69% increase over the past decade. The total FDI inflow in the last five years has amounted to US$ 383.5 billion.

India plans to allocate ₹ 18,000 crore (US$ 2.2 billion) in incentives across six new sectors, including chemicals and shipping containers.

Market Performance and Exports

• India's exports rose 6% YoY in April–December 2024, totaling US$ 602.6 billion

• Manufacturing GVA in Q4 FY24 stood at ₹ 11.21 lakh crore (US$ 128.06 billion)

• Smartphone exports hit a record ₹ 20,395 crore (US$ 2.44 billion) in Nov 2024, up 92% YoY

• FY24 smartphone exports: ₹ 1.35 lakh crore (US$ 15.6 billion); US is the top destination

• Display panel market projected to grow from US$ 7 billion to US$ 15 billion by 2025

• Capacity utilisation in Q3 FY24 stood at 76.8%, showing robust recovery

India is on track to achieve US$ 1 trillion in manufacturing output by FY26. The broader target includes US$ 2 trillion in total exports by 2030, supported by rapid e-commerce growth and middle-class expansion.

Startup Ecosystem and Investment Climate

The Indian startup ecosystem is booming, with startups raising ₹ 5,177 crore (US$ 596 million) in one week alone. By mid-2025, cumulative funding is expected to surpass the previous year’s ₹ 91,214 crore (US$ 10.5 billion).

Future Potential and Global Integration

India’s manufacturing sector is well-placed to tap into global value chains due to:

• Abundant raw materials

• Skilled workforce

• Entrepreneurial capabilities

The country is promoting:

• Export expansion

• Import localization

• Contract manufacturing

• Domestic consumption

With industrial corridors and smart cities under development, India aims to foster a globally competitive manufacturing ecosystem.

BUSINESS STRENGTHS

1. Cost-Effective Procurement of High-Thread-Count Fabric
High-quality, high-thread-count fabric—typically made from long-staple cotton—is sourced at reduced prices by purchasing surplus or slightly imperfect material in bulk. This strategic sourcing allows for the production of customized bedding at competitive rates, offering premium quality at affordable prices.

2. Experienced Promoters and Skilled Workforce
The promoters possess extensive industry experience, enabling rapid adaptation to market trends and expansion through a strong professional network. Their expertise supports operational growth and customer acquisition, while a dedicated employee base ensures consistent product quality and service delivery.

3. Integrated Manufacturing and Quality Assurance
An in-house setup with capabilities across knitting, dyeing, processing, printing, and packaging ensures streamlined production. Planned investment in embroidery machinery will further enhance quality and efficiency. A commitment to quality has resulted in high customer retention and repeat orders.

4. Robust Logistics Network
Partnerships with reliable freight service providers facilitate efficient and timely deliveries. A responsive logistics system supports prompt fulfilment of customer demands.

5. Efficient Inventory Management and Storage
Dedicated storage facilities maintain organized stocks of surplus, imperfect fabrics, and finished goods. Inventory is classified by grade and quality, monitored through daily stock reports. Deviations from set levels are promptly addressed, aligning stock management with market demand and customer needs

BUSINESS STRATEGIES

1. Target Market Identification
A dedicated in-house sales team, in coordination with management, conducts focused market research to identify potential customer segments and convert leads into business opportunities through tailored strategies.

2. Operational and Financial Efficiency
Emphasis is placed on cost optimization across supply chain and production processes. Continuous efforts are made to enhance manufacturing yield, adopt eco-friendly practices, and ensure efficient raw material sourcing. Recognition from Solidaridad Regional Expertise Centre reflects alignment with social responsibility and sustainable operations.

3. Product Portfolio Expansion
The product range has evolved from solely blankets to include bedsheets, curtains, comforters, and more. This diversification supports customer retention, taps into new markets, and meets global demand for quality, design, and competitive pricing. Product development remains an ongoing strategic priority.

4. Functional Efficiency Enhancement
Process improvements are prioritized to reduce costs and maintain a competitive edge. Certification from Solidaridad Regional Expertise Centre acknowledges consistent implementation of effective systems and operational discipline.

5. Order Conversion and Execution
The strategy focuses on converting leads into first-time buyers. Smooth coordination between sales, production, and logistics ensures timely delivery, enhancing customer satisfaction and long-term engagement.

6. Key Customer Relationship Management
Strategic focus is placed on nurturing high-value customers who contribute significantly to revenue. A majority of top customers are repeat clients, underscoring strong relationship management and mutual business growth.

BUSINESS RISK FACTORS & CONCERNS

1. Product Concentration Risk
A major portion of revenue is derived from blanket sales, making the business highly sensitive to shifts in consumer preferences, market demand, and competitive pressures. Inability to adapt to changing trends may lead to inventory obsolescence, discounted sales, or loss of customers.

2. Single-Location Manufacturing Dependency
Operations are entirely based in a single unit located in Panipat, Haryana. Any natural calamities, social unrest, infrastructure failures, or regulatory delays in this region could severely impact production, leading to operational and financial setbacks.

3. Supplier Concentration Risk
Procurement of raw materials, especially fabrics and surplus material, is concentrated among a few suppliers. Any disruption or change in pricing or availability from these suppliers may affect the ability to maintain production volumes and cost efficiency. 

Silky Overseas operates with a high product concentration in blankets, a single production facility, and limited supplier diversity, making the business vulnerable to demand fluctuations, operational disruptions, and supply chain constraints.