Arvind Warns of Margin Pressure Amid US Tariff Impact
By yash chouhan 2025-05-17 12:06:19
Indian apparel maker Arvind warned on Thursday that margins could be under pressure in the current financial year as it may partially absorb the impact of US tariff policy.
The company will take steps to reduce costs and increase volumes to ease margin pressure and plans to issue forecasts for the financial year "at a later stage".
US retailers are negotiating with suppliers on how the costs of tariff impositions will be distributed.
India is still in a relatively favourable position due to higher tariffs imposed on major US apparel suppliers such as Bangladesh, Vietnam and China from July.
"As an immediate result of this, we are seeing an increase in demand for apparel and clothing, and positive signals from key US customers, indicating an increase in business," Arvind said.
According to the company's annual report, exports will account for nearly 40% of the company's annual revenue in FY24.
Arvind said a part of the volume gains could come following the UK-India free trade agreement. Currently, the UK contributes less than 2% to the company's turnover.
"The latest free trade agreement with the UK...opens up a new important geography for the company," it said.
