Speaking to analysts during the company’s earnings call on Friday, Arvind Associate Vice President Corporate Finance and Head Investor Relations Satya Prakash Mishra said India now finds itself at a disadvantage, with additional sectors from the US also brought under the tariff bracket. The current 50% tariff level is probably the highest in competitive markets, he said.
Mishra said, “We had expected a further acceleration of 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.”
Known for its textiles, fabrics and garmenting divisions, the company delivered a strong second quarter of the year despite challenging tariff conditions for marquee clients and increased product diversification.
The company said in its earnings statement that Arvind has adopted a multi-pronged strategy to navigate the evolving global business environment – 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.
Arvind Vice Chairman Punit Lalbhai said that while the tariff pressure continues, and Turkey is also going to see the impact of the tariffs, the company’s tariff reduction measures “are shaping up very nicely, and we should see further improvement in our cost position driven by efficiency and effort.”
“While tariff pressure compressed margins, the cost optimization and efficiency measures we initiated in the previous quarter targeting structural and standing savings offset some of this impact. Our approach has been clear and consistent, standing with our long-time customers,” added Mishra.
As a trusted and reliable news source
Add now!
(You can now subscribe to our ETMarkets WhatsApp channel)
