Latest news with #PallabBanerjee
Economic Times
5 hours ago
- Business
- Economic Times
Trump's tariffs leave India's non-leather shoemakers footsore; global biggies brace for Make in India pain
Synopsis India's non-leather footwear industry in Tamil Nadu, buoyed by investments from global giants like Nike and Adidas, faces a significant threat from a potential 50% US tariff. This looming tariff has prompted companies such as Crocs and Nike to consider pausing new export orders from India to the US. ANI India's footwear industry (Image for representation) As India's non-leather footwear industry in Tamil Nadu welcomes substantial investments from global brands like Nike, Puma, Crocs, and Adidas, a significant concern looms over the industry -- the potential implementation of a 50% tariff by the United States. This tariff is seen as a substantial threat to the competitiveness of Indian exports, already strained by a previous 25% tariff that has pushed many brands to reconsider their manufacturing locations, The Times of India reported on August to sources cited in the story (by Asmita Dey), companies such as Crocs and Nike are contemplating a pause on new export orders to the US from India, pending further developments in trade discussions between the two apprehension is palpable -- if the tariff increases to 50%, it could effectively halt business activities for many exporters. An industry insider told ToI that the shift of orders to countries like Vietnam is a very real the apparel sector, the situation appears similarly dire. US retailers are reportedly urging exporters to move their production to alternative locations, particularly Bangladesh and Vietnam. Pallab Banerjee, managing director at Pearl Global, a cloth manufacturer supplying major US brands, noted that while existing orders are unaffected, the prospect of a 50% tariff would render US production unviable. Currently, half of Pearl Global's production is destined for the US, and the looming tariff could push their operations to other the uncertainty, there are indications that not all brands are reconsidering their long-term strategies in India. Many are adopting a wait-and-see approach, intending to make decisions based on the outcome of trade discussions later this Ganapathi, managing director and vice chairman at Gokaldas Exports, told the newspaper that the company has begun diversifying the markets where it sells, adding that the FTA with UK will be a major help.
News18
13 hours ago
- Business
- News18
India's Textile Exports Under Pressure As Firms Move Production To Vietnam, Indonesia, Africa
Indian textile exporters are shifting US-bound production to hubs such as Vietnam, Indonesia, Bangladesh, others to offset impact of tariffs While uncertainty clouds India's Rs 87,000-crore annual textile exports to the US, some exporters with overseas manufacturing bases are planning to shift production for American buyers out of India, according to a report by The Economic Times. Pearl Global Industries said it would reassign US-bound production to more favourable hubs. 'We are seeing positive momentum from US customers for our Vietnam, Indonesia, Bangladesh, and Guatemala operations," managing director Pallab Banerjee said during the company's quarterly earnings call. Another top-10 garment and textile exporter told ET that it plans to move its US orders to Africa. 'We have a facility in Africa, where we will try to shift our US orders," he said. Banerjee said the company was benefiting from an early resolution of tariff structures in several Asian markets. 'Now that the US has declared final reciprocal tariffs on all major garment manufacturing countries at 19-20%, we are seeing positive momentum from US customers for our Vietnam, Indonesia, Bangladesh, and Guatemala facilities," he said. Pearl Global, which manufactures in India, Bangladesh, Vietnam, Indonesia, and Guatemala, supplies to global brands including Chicos, Kohl's, Old Navy, Poligono, Primark, PVH, Ralph Lauren, Stylem, and Target. With a 50% tariff now imposed on India, Banerjee said the company is recalibrating its business strategy to adapt to changing trade dynamics. 'While production for the US market will be reassigned to more favourable hubs, India will continue to grow by tapping new and advantageous partnerships, such as the UK FTA, and focusing on other existing FTA markets like Japan and Australia until the US tariff issue is resolved," he said in a call. US revenue from India operations accounts for 16-18% of Pearl Global's FY25 group revenue, while the US business contributes 4-5% to overall group profit. 'We believe such recalibrations should help retain customer wallet share and maintain profitability," Banerjee said, adding that the company will go ahead with its planned capex in Bangladesh. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
15 hours ago
- Business
- Economic Times
India's textile exports face uncertainty as companies shift production to Vietnam, Indonesia, and Africa
While uncertainty looms over India's Rs 87,000-crore annual textile exports to the US, a handful of companies with manufacturing facilities overseas plan to shift production for American customers out of India. Pearl Global Industries, a listed firm, has said production for the US market will be reassigned to more favourable hubs. 'We are seeing positive momentum from US customers for our Vietnam, Indonesia, Bangladesh and Guatemala operations,' Pearl Global said during its quarterly results announcement. Another large textile exporter plans to move its US orders to Africa. 'We have a facility in Africa, where we will try to shift our US orders,' said CEO of one of the top 10 garment and textile exporters, requesting anonymity.'We are seeing healthy growth in Indonesia and Vietnam, following the early resolution of tariff structures in these markets. Now that the US has declared final reciprocal tariffs on all major garment manufacturing countries at 19-20%, we are seeing positive momentum from US customers for our Vietnam, Indonesia, Bangladesh and Guatemala facilities,' said Pallab Banerjee, managing director, Pearl Global, during the earnings call. Pearl Global has manufacturing bases in India, Bangladesh, Vietnam, Indonesia and Guatemala. It exports fashion garments — including knits, wovens, denim, outerwear, activewear and athleisure — to global brands such as Chicos, Kohl's, Old Navy, Poligono, Primark, PVH, Ralph Lauren, Stylem and Target.'With a 50% tariff imposed on India, Pearl Global is recalibrating its business strategy to adapt to evolving trade dynamics. While production for the US market will be reassigned to more favourable hubs, India will continue to grow by tapping new and advantageous partnerships, such as the UK FTA, and focusing on other existing FTA markets like Japan and Australia until the US tariff issue is resolved,' Banerjee said. The company said US revenue from its India operations in FY25 stands at 16-18% of group revenue, while bottom line from the US business accounts for 4-5% of overall group profit. 'We believe such recalibrations should help retain customer wallet share and maintain profitability,' he said. The company will also proceed with its capital expenditure plan in Bangladesh.
Time of India
15 hours ago
- Business
- Time of India
India's textile exports face uncertainty as companies shift production to Vietnam, Indonesia, and Africa
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel While uncertainty looms over India's Rs 87,000-crore annual textile exports to the US, a handful of companies with manufacturing facilities overseas plan to shift production for American customers out of India. Pearl Global Industries , a listed firm, has said production for the US market will be reassigned to more favourable hubs. 'We are seeing positive momentum from US customers for our Vietnam, Indonesia, Bangladesh and Guatemala operations,' Pearl Global said during its quarterly results large textile exporter plans to move its US orders to Africa. 'We have a facility in Africa, where we will try to shift our US orders,' said CEO of one of the top 10 garment and textile exporters, requesting anonymity.'We are seeing healthy growth in Indonesia and Vietnam, following the early resolution of tariff structures in these markets. Now that the US has declared final reciprocal tariffs on all major garment manufacturing countries at 19-20%, we are seeing positive momentum from US customers for our Vietnam, Indonesia, Bangladesh and Guatemala facilities,' said Pallab Banerjee, managing director, Pearl Global, during the earnings Global has manufacturing bases in India, Bangladesh, Vietnam, Indonesia and Guatemala. It exports fashion garments — including knits, wovens, denim, outerwear, activewear and athleisure — to global brands such as Chicos, Kohl's, Old Navy, Poligono, Primark, PVH, Ralph Lauren, Stylem and Target.'With a 50% tariff imposed on India, Pearl Global is recalibrating its business strategy to adapt to evolving trade dynamics. While production for the US market will be reassigned to more favourable hubs, India will continue to grow by tapping new and advantageous partnerships, such as the UK FTA, and focusing on other existing FTA markets like Japan and Australia until the US tariff issue is resolved,' Banerjee company said US revenue from its India operations in FY25 stands at 16-18% of group revenue, while bottom line from the US business accounts for 4-5% of overall group profit. 'We believe such recalibrations should help retain customer wallet share and maintain profitability,' he said. The company will also proceed with its capital expenditure plan in Bangladesh.
Time of India
17 hours ago
- Business
- Time of India
US tariffs: Shoemakers take measured steps
MUMBAI: At the heart of India's non-leather footwear manufacturing hub in Tamil Nadu where global brands such as Nike, Puma, Crocs and Adidas are pouring in several thousand crores of investments, there is worry over the looming US tariff threat of 50%. Brands are looking to reroute some of their orders to the US through other Asian hubs and players including American firms Crocs and Nike may be putting a pause on new export orders to the US from India until there is further clarity on trade talks between the two countries, sources indicated. A 25% tariff has already eroded India's export competitiveness compared to other regions such as Vietnam and Indonesia and another 25% would altogether bring business activity to a halt, fear exporters. "Indian manufacturers will lose out on US orders. Those will start getting shifted to places like Vietnam," said an industry source. In the apparel sector, US retailers are putting pressure on exporters to shift production for the US to other locations such as Bangladesh and Vietnam, said Pallab Banerjee, MD at cloth manufacturer Pearl Global which counts major US brands among its customers. "Orders that are on the way are not impacted but 50% tariff will not be viable for anyone. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like With temperatures hitting 95°F, this is the mini air conditioner everyone's buying in the U.S News of the Discovery Undo For us, production for US will now move to our factories in other manufacturing countries," said Banerjee. For Pearl's India factories, US accounts for 50% of its production. Mails sent to Walmart, Gap remained unanswered. Sources familiar with the matter said that Walmart has not paused or cancelled orders as of now. Not all doom and gloom Brands are certainly not reviewing their India growth plans or the idea to remain invested in the country; not now at least. Most of them are on a wait and watch mode and will take decisions based on how the deal talks between India and US pan out later this month. "Companies will wait until there is clarity. But if the 50% tariff indeed gets applied, most of the orders to the US from India will stop getting shipped from that day," said Simon Lee, vice-president at the Taiwan Chamber of Commerce in India. Detailed questionnaires sent to the global teams of Puma, Adidas, Nike, Converse and Crocs didn't elicit a response. Puma and Adidas, however, indicated that India remains an important sourcing market for them. Sivaramakrishnan Ganapathi, managing director and vice chairman at Gokaldas Exports, said that the company has started to diversify the markets where it sells and the FTA with UK will be a big help. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
