Tariffs imposed by the US on major textile-exporting countries including Bangladesh will help Kitex Garments boost total revenues to Rs 1,000 crore in 2025, anticipates the company.

The company expects revenue to reach Rs 5,000 crore ($600 million approx.) once their new textile plants in Telangana are fully operational, further highlighting their positive outlook on market conditions. .

Earlier this month, the US announced tariffs on all economies, sparking a trade war and causing significant disruptions in major markets. These tariffs included a 26 per cent levy on India, which is notably lower than those imposed on other textile-exporting countries, giving India a distinct advantage.

Bangladesh faces a 37 per cent tariff, while China's exports to the United States incur a levy of over 100 per cent. Other major textile-exporting nations also face higher tariffs than India, providing the country with a competitive edge over its rivals.

These tariffs are expected to benefit the Indian textile industry. Combined with the tariffs on other nations and the current political instability in Bangladesh, they could potentially increase India's presence in the textile market, states Kitex. 

As per data from the US Office of Textiles and Apparel (OTEXA), from January-November 2024, India's garment exports to the US increased by 4.25 per cent to $4.4 billion while those of its neighbor, Bangladesh, declined by 0.46 per cent to $6.7 billion, as per a Reuters report.

Lower tariff rates compared to major competitors allow Kitex to offer more competitive pricing while maintaining profit margins. Kitex aims to serve 1 per cent of US textile garment requirements, representing a significant portion of potential Indian exports to the US. It has invested Rs 3,550 crore ($426 million approx.) in its production facilities to meet increased demand from US buyers seeking suppliers facing lower tariffs.