Kitex Garments eyes Rs 5,000 crore revenue, expects to benefit from US tariffs
Kitex Garments is aiming to achieve Rs 1,000 crore in revenue during 2025 and has projected a long-term revenue target of Rs 5,000 crore once its textile plants in Telangana reach full operational capacity. The company expects to benefit from recent US tariff changes on textile imports.
The US administration under Donald Trump recently imposed steep tariffs on key textile exporters. While India faces around a 26% levy, Bangladesh and China have been hit with significantly higher tariffs, 37% and nearly 140% respectively, giving Indian exporters a relative advantage in the US market. 'I think we'll have a deal with India,' announced US president Donald Trump to reporters outside the White House, CNBC reported on April 29.
Kitex stated that these developments, combined with political uncertainty in Bangladesh, may shift global sourcing patterns in favour of India, Apparel Resources India reported. The company is positioning itself to cater to increased demand from US buyers seeking lower-tariff alternatives.
With an ongoing investment of Rs 3,550 crore in expanding its manufacturing infrastructure, Kitex believes it is well placed to capitalise on this shift. The company highlighted that it can maintain profit margins while offering competitive pricing compared to major global competitors.
Kitex aims to fulfil 1% of total US textile garment demand, which it views as a significant export opportunity. The company expects this strategic focus to contribute meaningfully to India's growing presence in global textile trade.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
2 hours ago
- Fashion Network
US clothes, toy prices show tariff impact only at margins so far
For all the hand-wringing about tariffs, Americans are so far experiencing limited inflation from President Donald Trump 's protectionist trade policy. For heavily imported goods like smartphones, new cars and clothing, price indexes are actually down since the Trump administration began implementing levies on key trade partners including China, based on data released Wednesday. Other categories including sporting goods and toys have risen only so much since February. Companies may be finding ways to shield consumers from higher costs as they fear prices hikes — after years of lingering inflation — could lead to a pullback in demand. Some firms stocked up on inventories ahead of tariffs, allowing them to maintain pricing discipline, while others are absorbing some of the extra costs at the expense of lower margins. Some may also be taking solace in Trump's decision to pause or lower some of the more punitive tariffs as the administration works toward trade agreements, which has bought companies some extra time to weigh price hikes. Still, most economists largely expect businesses to start passing more of the trade costs this summer, with Walmart Inc. and Ford Motor Co. among the firms that are warning higher prices for consumers are coming. The CPI report also showed bigger increases in some tariff-exposed categories. An index of toy prices rose by the most since 2023, while major appliances posted the largest advance in nearly five years. More broadly, the government's consumer price index report showed underlying inflation rose less than forecast for a fourth month in May. Goods costs, excluding the volatile food and energy categories, were flat compared with a month earlier. 'It is too early to declare victory and say that the significant increase in tariffs over the past few months will have no material impact on consumer price growth,' Wells Fargo & Co economists Sarah House, Michael Pugliese and Nicole Cervi wrote in a note after the report. 'Pre-tariff inventory building and anticipation that tariffs may eventually be dialed back are likely leading to some of the effects being delayed, and we see a particular risk of vehicle and apparel prices bouncing back in the near term,' they said. Lawrence Werther and Brendan Stuart, economists at Daiwa Capital Markets, also expect tariff-related price pressures to emerge in the next few months, but 'ongoing trade negotiations, along with anchored longer-term inflation expectations, point to a one-off (and relatively short-lived) shift.'
Fashion Network
2 hours ago
- Fashion Network
US clothes, toy prices show tariff impact only at margins so far
For all the hand-wringing about tariffs, Americans are so far experiencing limited inflation from President Donald Trump 's protectionist trade policy. For heavily imported goods like smartphones, new cars and clothing, price indexes are actually down since the Trump administration began implementing levies on key trade partners including China, based on data released Wednesday. Other categories including sporting goods and toys have risen only so much since February. Companies may be finding ways to shield consumers from higher costs as they fear prices hikes — after years of lingering inflation — could lead to a pullback in demand. Some firms stocked up on inventories ahead of tariffs, allowing them to maintain pricing discipline, while others are absorbing some of the extra costs at the expense of lower margins. Some may also be taking solace in Trump's decision to pause or lower some of the more punitive tariffs as the administration works toward trade agreements, which has bought companies some extra time to weigh price hikes. Still, most economists largely expect businesses to start passing more of the trade costs this summer, with Walmart Inc. and Ford Motor Co. among the firms that are warning higher prices for consumers are coming. The CPI report also showed bigger increases in some tariff-exposed categories. An index of toy prices rose by the most since 2023, while major appliances posted the largest advance in nearly five years. More broadly, the government's consumer price index report showed underlying inflation rose less than forecast for a fourth month in May. Goods costs, excluding the volatile food and energy categories, were flat compared with a month earlier. 'It is too early to declare victory and say that the significant increase in tariffs over the past few months will have no material impact on consumer price growth,' Wells Fargo & Co economists Sarah House, Michael Pugliese and Nicole Cervi wrote in a note after the report. 'Pre-tariff inventory building and anticipation that tariffs may eventually be dialed back are likely leading to some of the effects being delayed, and we see a particular risk of vehicle and apparel prices bouncing back in the near term,' they said. Lawrence Werther and Brendan Stuart, economists at Daiwa Capital Markets, also expect tariff-related price pressures to emerge in the next few months, but 'ongoing trade negotiations, along with anchored longer-term inflation expectations, point to a one-off (and relatively short-lived) shift.'
Fashion Network
7 hours ago
- Fashion Network
Indian textile giant Arvind and Fashion for Good unveil low-carbon textile factory project
Indian textile giant Arvind and Fashion for Good, a platform that brings together brands and manufacturers to promote sustainable innovation, plan to build a low-impact textile facility for woven and knitted cotton fabrics in Gujarat, western India. The project will establish an industrial unit that reduces greenhouse gas emissions by 93% compared to a conventional factory. Arvind and Fashion for Good also project that the facility will save 60 liters of water for every kilogram of fabric produced. The partners aim to create the industry's first near-zero carbon textile production facility. They view the initiative as the starting point for Future Forward Factories India, a program that accelerates the deployment of innovative textile manufacturing sites. 'By developing a master plan and partnering with Arvind to build a factory that addresses tier 2 manufacturing challenges, we can implement tangible solutions that drive systemic change,' said Katrin Ley, managing director of Fashion for Good. The partners announced the project at the Global Fashion Summit, a key event focused on sustainable innovation in the textile industry, held June 3–5 in Copenhagen. Fashion for Good, launched in 2017, counts major industry players among its participants, including Bestseller, C&A, Chanel, Inditex (Zara), Kering, Levi Strauss & Co., Norrøna, On, Otto Group (Bonprix), Patagonia, PVH Corp., Zalando, as well as Arvind, Birla Cellulose and PDS Limited.
