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
an hour ago
- Fashion Network
European textile and clothing imports accelerate
While remaining stable in 2024, at a slightly lower level than in 2019, European clothing and textile imports accelerated by 21% and 16% respectively in the first quarter, on the eve of the Sino-American trade war, according to data from the French Fashion Institute (IFM). In the three months preceding the announcement of Donald Trump 's tariffs, the EU imported 23.4 billion euros worth of clothing. And at a time when the European textile industry fears that Chinese production will be redirected from the U.S. to Europe, this first quarter already shows a 29% rise in Asian clothing imports. This rise unsurprisingly concerns the EU's leading supplier, China (29%), but also benefits its challenger Bangladesh (+33%), not forgetting India (+28%), Cambodia (+38%), Vietnam (+22%), Pakistan (+33%), Sri Lanka (+17%), Indonesia (+12%) and Thailand (+12%). Even Myanmar, still boycotted by some contractors since the coup d'état in 2021, is up by 9%. As if to underline the regional nature of the phenomenon, the EU's third-largest supplier of clothing, Turkey, fell back by 1%. And while Morocco grew by 9%, Tunisia contracted by 4%, while Egypt continued the upward trend of the previous year (+22%). The United Kingdom saw a 2% decline. In the textile sector, Europe imported 8.7 billion euros worth of materials in three months, including 5.7 billion from Asia (+28%). Here again, all countries in the region benefited to varying degrees, particularly Bangladesh (+42%) and Vietnam (+44%), while Japan (+5%) and South Korea (+10%) also did well. The biggest loser in the Top 20 is the United Kingdom, down 13%, while Morocco is down 9%. Sharp drop in exports to Asia The surge in imports has not been accompanied by a reversal of the situation on the export side. After two years of contraction, shipments of clothing and textiles fell by a further 2% and 4% respectively in the first three months of the year, with sharp falls specifically in Asian orders. Of the 9 billion euros worth of clothing exports, 2.2 billion went to Asia, which reduced its orders by 15%. This decline affected China (-15%), South Korea (-18%), Hong Kong, Taiwan and Singapore, while Japan remained stable. Other notable contractions include the UK (-4%), Canada (-9%), and Australia (-11%). The U.S., on the other hand, accelerated its orders by 6%, following the 2% rise already seen in 2024. Textile exports followed this trend. Of the 6.4 billion euros worth of materials exported, 1.3 billion went to Asia, a drop of 14%. This decline was mainly driven by China (-19%), India (-13%), Vietnam (-21%), and South Korea (-22%). The United States, Europe's biggest textile customer, increased its orders by 2% to 735 million euros, while Morocco (+9%) and Egypt (+27%) posted strong increases.
France 24
5 hours ago
- France 24
Pentagon chief vows to honor US-Australia sub deal
Under the AUKUS deal signed to great fanfare in 2021, Washington, London and Canberra are cooperating on the joint development of cyber warfare tools, artificial intelligence and hypersonic missiles. The agreement commits the United States to building cutting-edge submarines for Australia, an investment with an estimated cost of up to $235 billion over 30 years. Australia plans to acquire at least three Virginia Class submarines from the United States within the next 15 years, eventually manufacturing its own nuclear-powered subs. The US navy has 24 Virginia-class vessels, which can carry cruise missiles, but American shipyards are struggling to meet production targets set at two new boats each year. Critics question why the United States would sell nuclear-powered submarines to Australia without stocking its own military first. Questioned by members of the US House of Representatives, Hegseth said his team was talking "every day" to US shipbuilders Electric Boat and Huntington Ingalls to ensure that "their needs not only are being met, but their shortfalls are being addressed." The former Fox News host, one of President Donald Trump's most divisive cabinet appointments, acknowledged a "gap" between current supply and future demand, but added that submarine building is "crucial" to US security. He blamed Trump's Democratic predecessor Joe Biden for having "neglected" the industrial base for submarine construction. While the stealthy Virginia class is an attack and intelligence gathering submarine designed for a wide range of missions, the Columbia class is a ballistic missile carrier built for nuclear deterrence that will be the largest submarine ever built by the United States. Democrat Rosa DeLauro -- whose home state of Connecticut builds Navy submarines -- berated Hegseth over the Pentagon's decision to move $3.1 billion earmarked in 2026 for Columbia-class construction to 2027 and 2028. "Is that going to raise alarm bells across the defense industrial base by signaling a lack of commitment to the program?" she asked.
Fashion Network
9 hours ago
- Fashion Network
Cantabil launches 600th store in Jammu & Kashmir's Baramulla
Cantabil Retail India Limited has announced the opening of its 600th exclusive brand outlet, marking a key milestone in the brand's expansion journey. The new store is located in Baramulla in Jammu & Kashmir and spans 3,016 square feet, reflecting the business' continued push into Tier 2 and 3 markets across India. The opening underscores Cantabil's strategy to bring contemporary fashion to aspirational regions, while cementing its position in the country's organised fashion space, the brand announced in a press release on June 10. Cantabil currently operates in over 290 cities across 20 states, with plans to open 70 to 80 additional stores in the 2026 financial year. The brand has also set a revenue target of Rs 1,000 crore by the 2027 financial year. 'Reaching the 600-store milestone is a testament to our dedication, resilience, and the trust our customers have placed in us," said Cantabil Retail India Limited's director Deepak Bansal in a press release. "From a single store to a pan-India presence, this journey has been incredible. Our growth would not have been possible without our passionate team, loyal customers, and strong partnerships." From menswear beginnings, Cantabil has developed into a multi-category lifestyle brand, offering apparel for men, women, and children, as well as footwear, accessories, and athleisure. "As we continue to expand, we remain committed to delivering quality fashion that resonates with the evolving preferences of Indian consumers," said Bansal.
