A closer look: US tariffs and Indian exports in the interim Leading apparel manufacturer Arvind vice president 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 normalize, 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 stream despite margin pressures.
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Amidst global textile and fashion supply chain disruptions, India's textile exports face an uncertain period, particularly as a 90-day pause button on US tariffs prevails.
Despite this, Arvind, a leading apparel manufacturer, anticipates some short-term pressure on its profit margins in the first two quarters. This is due to increased costs for certain key US clients, which Arvind has partially absorbed.
However, the company is seeing a notable rise in order volumes from its US customer base. Arvind expects margins to recover and contribute positively in the latter half of the fiscal year, driven by strong demand.
The company is optimistic about significant growth in garment volume this year, as recent capacity investments begin to yield results, despite the temporary margin challenges.