Latest news with #Lall
Time of India
3 days ago
- Business
- Time of India
India gains as US tariffs rise: Local firms see export boom
Chief executives of leading homegrown companies including Dixon Technologies , Tata Consumer Products , Blue Star , Havells and Arvind , have told analysts that Indian businesses are at a competitive position in the US tariff scenario and most of them are now flooded with queries for higher business from their US partners. The chief executives said the India-US bilateral trade agreement (BTA) currently being discussed will provide an impetus to business. Dixon managing director Atul Lall told an earnings call last week that the company was expanding capacity for its anchor customer by 50% to meet its increased order book, a large part of it will be for exports to North America in the light of the evolving geopolitical scenario. He said production volume for a large US brand, through its partner Compal, will increase "with potential opportunities for exports." While Lall didn't specify any of the brands, analysts said its anchor customer is Motorola, which exports handsets to the US and the US-brand is Google's Pixel. ET had also reported last month that Google wants to export handsets from India. While US president Donald Trump has asked mobile phone companies like Apple and Samsung to produce locally in the US instead of sourcing from India and other places or face 25% tariff, experts have opined that despite the additional tariff, it will be cheaper for companies to produce in India and export. Leading apparel manufacturer Arvind vice chairman Punit Lalbhai said in the short-term some of its "strategic customers" have seen their cost structures go up, which the company has also absorbed a bit and could lead to a "little bit of margin pressure" in the first and second quarters. He, however, said the company was seeing a jump in volume orders from many of its US customers. Lalbhai said margins will soon normalise and the benefits will flow in the second half of the fiscal year with a robust demand scenario. "This year we should add significant garment volume growth over last year in the textile space. Many of our capacities that we've been investing in are now coming on margin headwinds, but very optimistic growth and demand outlook," he said. The optimism from top CEOs comes at a time when the US has already reduced tariffs on China from 145% to 30% as compared to India's 26%, which is currently on hold. The US has levied only 10% tariff on India and the 26% tariff could be enforced again from July. Another apparel company, Gokaldas Exports , said in its investor presentation that higher tariff on China and political uncertainties in Bangladesh contribute to the overall attractiveness of India as a sourcing destination despite short hiccups. FMCG major Tata Consumer Products CEO Sunil D'Souza said since products like coffee and tea, which it exports to the US, are not produced there and hence "from a competitive scenario, we'll be on even keel with everyone else" and not way off. Havells has just sent its first consignment of Made in India ACs to the US and the management said India will be a beneficiary of the US BTA. BlueStar and Amber Enterprises CEOs said they were receiving a huge number of export enquiries as companies prepared their supply chains for tariff disruptions. Titan Company 's CEO for international business, R Kuruvilla Markose, said the company is tracking competition on price increase in the US and expects the BTA will be signed quickly.
Economic Times
3 days ago
- Business
- Economic Times
India gains as US tariffs rise: Local firms see export boom
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Chief executives of leading homegrown companies including Dixon Technologies Havells and Arvind , have told analysts that Indian businesses are at a competitive position in the US tariff scenario and most of them are now flooded with queries for higher business from their US chief executives said the India-US bilateral trade agreement (BTA) currently being discussed will provide an impetus to managing director Atul Lall told an earnings call last week that the company was expanding capacity for its anchor customer by 50% to meet its increased order book, a large part of it will be for exports to North America in the light of the evolving geopolitical scenario. He said production volume for a large US brand, through its partner Compal, will increase "with potential opportunities for exports."While Lall didn't specify any of the brands, analysts said its anchor customer is Motorola, which exports handsets to the US and the US-brand is Google's had also reported last month that Google wants to export handsets from US president Donald Trump has asked mobile phone companies like Apple and Samsung to produce locally in the US instead of sourcing from India and other places or face 25% tariff, experts have opined that despite the additional tariff, it will be cheaper for companies to produce in India and apparel manufacturer Arvind vice chairman Punit Lalbhai said in the short-term some of its "strategic customers" have seen their cost structures go up, which the company has also absorbed a bit and could lead to a "little bit of margin pressure" in the first and second however, said the company was seeing a jump in volume orders from many of its US said margins will soon normalise and the benefits will flow in the second half of the fiscal year with a robust demand scenario. "This year we should add significant garment volume growth over last year in the textile space. Many of our capacities that we've been investing in are now coming on margin headwinds, but very optimistic growth and demand outlook," he optimism from top CEOs comes at a time when the US has already reduced tariffs on China from 145% to 30% as compared to India's 26%, which is currently on hold. The US has levied only 10% tariff on India and the 26% tariff could be enforced again from apparel company, Gokaldas Exports , said in its investor presentation that higher tariff on China and political uncertainties in Bangladesh contribute to the overall attractiveness of India as a sourcing destination despite short major Tata Consumer Products CEO Sunil D'Souza said since products like coffee and tea, which it exports to the US, are not produced there and hence "from a competitive scenario, we'll be on even keel with everyone else" and not way has just sent its first consignment of Made in India ACs to the US and the management said India will be a beneficiary of the US BTA. BlueStar and Amber Enterprises CEOs said they were receiving a huge number of export enquiries as companies prepared their supply chains for tariff disruptions. Titan Company 's CEO for international business, R Kuruvilla Markose, said the company is tracking competition on price increase in the US and expects the BTA will be signed quickly.
Time of India
3 days ago
- Business
- Time of India
India gains as US tariffs rise: Local firms see export boom
Chief executives of leading homegrown companies including Dixon Technologies , Tata Consumer Products , Blue Star , Havells and Arvind , have told analysts that Indian businesses are at a competitive position in the US tariff scenario and most of them are now flooded with queries for higher business from their US partners. The chief executives said the India-US bilateral trade agreement (BTA) currently being discussed will provide an impetus to business. Dixon managing director Atul Lall told an earnings call last week that the company was expanding capacity for its anchor customer by 50% to meet its increased order book, a large part of it will be for exports to North America in the light of the evolving geopolitical scenario. He said production volume for a large US brand, through its partner Compal, will increase "with potential opportunities for exports." While Lall didn't specify any of the brands, analysts said its anchor customer is Motorola, which exports handsets to the US and the US-brand is Google's Pixel. ET had also reported last month that Google wants to export handsets from India. While US president Donald Trump has asked mobile phone companies like Apple and Samsung to produce locally in the US instead of sourcing from India and other places or face 25% tariff, experts have opined that despite the additional tariff, it will be cheaper for companies to produce in India and export. Leading apparel manufacturer Arvind vice chairman Punit Lalbhai said in the short-term some of its "strategic customers" have seen their cost structures go up, which the company has also absorbed a bit and could lead to a "little bit of margin pressure" in the first and second quarters. He, however, said the company was seeing a jump in volume orders from many of its US customers. Lalbhai said margins will soon normalise and the benefits will flow in the second half of the fiscal year with a robust demand scenario. "This year we should add significant garment volume growth over last year in the textile space. Many of our capacities that we've been investing in are now coming on margin headwinds, but very optimistic growth and demand outlook," he said. The optimism from top CEOs comes at a time when the US has already reduced tariffs on China from 145% to 30% as compared to India's 26%, which is currently on hold. The US has levied only 10% tariff on India and the 26% tariff could be enforced again from July. Another apparel company, Gokaldas Exports , said in its investor presentation that higher tariff on China and political uncertainties in Bangladesh contribute to the overall attractiveness of India as a sourcing destination despite short hiccups. FMCG major Tata Consumer Products CEO Sunil D'Souza said since products like coffee and tea, which it exports to the US, are not produced there and hence "from a competitive scenario, we'll be on even keel with everyone else" and not way off. Havells has just sent its first consignment of Made in India ACs to the US and the management said India will be a beneficiary of the US BTA. BlueStar and Amber Enterprises CEOs said they were receiving a huge number of export enquiries as companies prepared their supply chains for tariff disruptions. Titan Company 's CEO for international business, R Kuruvilla Markose, said the company is tracking competition on price increase in the US and expects the BTA will be signed quickly.
Time of India
7 days ago
- Automotive
- Time of India
Dixon aims to boost exports, margin post closure of PLI scheme, says MD Atul Lall
A ramp-up in export volumes and margin expansion through the backward integration route will help Dixon Technologies offset any potential fall in margins and volumes after the production-linked incentive (PLI) scheme ends in FY26, a top company executive which has consistently met incremental production targets under the scheme, said incentives contribute around 0.6-0.7% to its mobile phone revenue margins, with majority of the savings passed on to customers. This was indicated during the company's earnings call on also does not expect a slide in volumes post-PLI closure due to its deeply entrenched relationships with customers, some of whom have inked strategic joint ventures with the company during the tenure of the scheme. Dixon shares closed 5.8% lower at ₹15,598 on BSE Wednesday. Dixon has guided production of 40-44 million smartphones in the current fiscal, which will ramp up to 60-65 million by FY27. Of the estimated 40-44 million smartphone volumes in FY26, it expects export volumes will make up 10-12 million to North America, which will increase significantly in FY27, Atul Lall , chief executive and managing director, Dixon Technologies, said. The company's customers in smartphone manufacturing include top Android brands in India, including Motorola, Xiaomi, Oppo, Realme, Vivo, Transsion, and Nothing. While direct incentives will end, Dixon believes the initiatives currently underway will generate benefits that are much more than the PLI contribution, albeit potentially with some time lag. "We are quite confident of mitigating the impact, and it will be largely driven by integration and also the efforts on efficiency and automation," Lall said. The company is constructing a new 1 million sq ft facility in Noida for smartphone manufacturing. "We feel that the initiatives that we are taking on automation, increasing our efficiency, and our foray into components under the ECMS (electronics components manufacturing scheme), the benefits and gains for us are going to be much more. There can be some time lag here and there, but on an overall basis we are sitting on a much healthier and more comfortable position, post PLI," Lall said.
Time of India
21-05-2025
- Business
- Time of India
Dixon aims to boost exports, margin post closure of PLI scheme, says MD Atul Lall
Dixon Technologies anticipates that increased exports and backward integration will compensate for any potential decline in margins and volumes following the conclusion of the PLI scheme in FY26. The company expects smartphone production to rise to 60-65 million units by FY27, with a significant portion destined for North American exports. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads ( Originally published on May 21, 2025 ) A ramp-up in export volumes and margin expansion through the backward integration route will help Dixon Technologies offset any potential fall in margins and volumes after the production-linked incentive (PLI) scheme ends in FY26, a top company executive said. Dixon , which has consistently met incremental production targets under the scheme, said incentives contribute around 0.6-0.7% to its mobile phone revenue margins, with majority of the savings passed on to customers. This was indicated during the company's earnings call on also does not expect a slide in volumes post-PLI closure due to its deeply entrenched relationships with customers, some of whom have inked strategic joint ventures with the company during the tenure of the shares closed 5.8% lower at ₹15,598 on BSE has guided production of 40-44 million smartphones in the current fiscal, which will ramp up to 60-65 million by FY27. Of the estimated 40-44 million smartphone volumes in FY26, it expects export volumes will make up 10-12 million to North America, which will increase significantly in FY27, Atul Lall , chief executive and managing director, Dixon Technologies, company's customers in smartphone manufacturing include top Android brands in India, including Motorola, Xiaomi, Oppo, Realme, Vivo, Transsion, and direct incentives will end, Dixon believes the initiatives currently underway will generate benefits that are much more than the PLI contribution, albeit potentially with some time lag."We are quite confident of mitigating the impact, and it will be largely driven by integration and also the efforts on efficiency and automation," Lall company is constructing a new 1 million sq ft facility in Noida for smartphone manufacturing."We feel that the initiatives that we are taking on automation, increasing our efficiency, and our foray into components under the ECMS (electronics components manufacturing scheme), the benefits and gains for us are going to be much more. There can be some time lag here and there, but on an overall basis we are sitting on a much healthier and more comfortable position, post PLI," Lall said.
