Kitex Garments on Monday said that the company is expecting total revenue of ₹1000 crore for 2025, helped by the US President Donald Trump’s tariffs on major textile-exporting countries, including Bangladesh.
The company, in its investor presentation, said that it expects revenue of ₹5,000 crore once its new textile plants in Telangana reach full production capacity, further underscoring its optimism about market conditions. Following the announcement, the company’s stock hit the upper circuit, closing at five per cent higher at ₹244.25.
Earlier this month, Donald Trump announced sweeping tariffs on all economies, triggering a trade war and causing significant disruptions in major markets. Trump imposed a 26 per cent tariff on India, which is significantly lower than other textile exporting countries and gives the country a clear edge.
Bangladesh was slapped with a 37 per cent tariff, while China faces a levy of over 100 per cent on exports to the United States. Other major textile-exporting nations also face higher tariffs than India, giving the country a competitive advantage over its rivals.
Kitex said that US tariffs are going to benefit the Indian textile industry. The company said that political unrest in Bangladesh, combined with Trump’s tariffs on other nations, could potentially increase India’s presence in the textile market.
Data from the US Office of Textiles and Apparel showed that India’s garment exports to the US rose by 4.25 per cent to $4.4 billion between January and November last year, while that of its neighbour, Bangladesh, fell by 0.46 per cent to $6.7 billion, Reuters reported.
“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,” the company said.
The company also stated that a ₹3,550 crore investment in its production facilities positions Kitex to meet increased demand from US buyers seeking lower-tariff suppliers.
