Text rephrased: Gokaldas Exports plans to boost growth in Europe and expand into Africa as a means to combat tariff increases imposed by Trump
In the dynamic world of international trade, Gokaldas Exports, a significant player in the $38 billion Indian textile export sector, is adapting to changing circumstances. The company, known for producing approximately 90 million garments annually, has been making approximately 75% of its standalone sales in the United States.
However, the steep U.S. tariffs have been a challenge for the industry, with Gokaldas not being an exception. The Managing Director of Gokaldas, Sivaramakrishnan Ganapathi, has expressed concerns about a potential 50% reciprocal tariff with the U.S., stating that it could make doing business difficult. To maintain client relationships, Gokaldas has been offering discounts and absorbing some costs related to higher U.S. tariffs.
The company's quarterly core profit margin is expected to shrink to single digits from around 12% in the first quarter of fiscal 2026. Exports to the U.S., Canada, the UK, and France account for a significant portion of Gokaldas' revenue, making these tariffs particularly impactful.
Amidst these challenges, Gokaldas is looking towards opportunities. The company aims to double the combined revenue share from the United Kingdom and the European Union from 10%, within two years. To achieve this, Gokaldas plans to increase shipments to these regions and expand production in Africa, particularly in Kenya and Ethiopia, where tariffs are lower (10%).
The UK-India Free Trade Agreement, which became effective in 2025, is also contributing to Gokaldas Exports' increased shipments to these regions. This agreement, which concluded recently with the UK aiming for implementation around October 2025, is expected to provide a boost to the company's operations.
Gokaldas' clientele includes well-known names such as Walmart, Gap, and JCPenney. The company's resilience and strategic shifts demonstrate its commitment to navigating the complexities of the global trade landscape and continuing to serve its clients effectively.
Read also:
- Aquatech purchases Koch's Direct Lithium Extraction business, merging Li-ProTM DLE technology into the PEARLTM Technology Platform.
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
- Construction and renovation projects in Cham county granted €24.8 million focus on energy efficiency
- Exclusive Preview: Collaboration between MINI and Deus Ex Machina Unveils Unique JCW Endeavors in Munich
