US President Donald Trump’s tariffs on key textile exporting countries, such as Bangladesh, are expected to help Kitex Garments reach its goal of Rs. 1000 crore (US $ 117 million) in 2025.
In its investor presentation, the business emphasised its optimism over market circumstances by stating that it anticipates a revenue of Rs 5000 crore (US $ 586 million) once its textile plants in Telangana reach full production capability.
Donald Trump declared broad tariffs on all economies earlier this month, sparking a trade war and seriously upsetting important markets. The 26 per cent tariff that Trump levied on India offers the nation a distinct advantage over other nations that sell textiles.
Bangladesh was slammed with a 37 per cent tariff, while China’s exports to the US are subject to a levy of almost 140 per cent. India has a competitive edge over its rivals because other significant textile exporting countries similarly pay higher tariffs than India.
According to the corporation, Trump’s tariffs on other countries, along with the political turmoil in Bangladesh, may make India a bigger player in the textile industry.
Compared to major competitors, Kitex is able to maintain profit margins while providing more competitive pricing because of reduced tariff rates. According to the company, Kitex’s objective of fulfilling 1 per cent of US textile garment needs represents a sizable portion of potential Indian exports to the US.
The business added that Kitex is better equipped to handle the growing demand from US consumers looking for lower-tariff suppliers thanks to an investment of Rs. 3,550 crore (US $ 416 million) in its production facilities.
