Arvind Ltd is realigning its supply chain and expanding outside the US to beat the tariff hit

The management of leading apparel manufacturer and exporter Arvind Ltd on Friday said India is at a disadvantage following the final US tariff imposed in the first quarter of this year. The company has adopted a multi-pronged strategy to navigate this by realigning its supply chain, expanding into non-US markets and optimizing costs. Speaking to analysts during the company’s earnings call on Friday, Satya Prakash Mishra, Associate Vice President of Corporate Finance and Head of Investor Relations, Arvind, said India is now in the most disadvantaged position, with even other sectors being brought under the tariff slab from the US. The current 50% tariff level may be the highest among competitive markets, he said.

“We expected a further acceleration of the volume shift towards India, including China plus one, driven by our neutral geopolitical stance. Three months later, the picture has completely changed. It is almost a 180 degree turn and I am sure we have not seen the end of it yet,” Mishra said.

The company is known for its textile, fabric and apparel divisions and had a good second quarter of the year despite the challenging pricing environment for major customers and increasing product diversification.

The company said in its earnings statement that Arvind has adopted a multi-pronged strategy to navigate the evolving global trading environment – ​​by realigning its supply chain, expanding into non-US markets, optimizing costs and maintaining strong customer relationships – to maintain competitiveness and profitability amid the ongoing tariff regime.

Punit Lalbhai, vice chairman at Arvind, said that while tariff pressure continues and Turkey will also see the impact of the tariffs, the company’s tariff reduction measures are “very well underway, and we should see further improvement in our cost position through efficiencies and efforts.” “While tariff pressure has compressed margins, the cost optimization and efficiency measures we implemented in previous quarters have focused on structural and sustainable savings, offsetting some of this impact. Our approach has remained clear and consistent and supports our long-standing customers,” said Mishra.