Focus on diversification, premiumisation, and financial discipline to sustain growth.
VTM, a leading Indian home-textile manufacturer with a significant export presence in the United States, has announced a set of proactive measures to minimise business impact, ensure supply continuity, and sustain medium-to-long-term growth following the newly imposed US tariffs on imports from India.
Key measures outlined by VTM include:
- Customer continuity: Fulfil confirmed US orders on schedule while engaging with key accounts on shared-burden pricing and assortment adjustments.
- Market diversification: Expand sales in the UK under the India-UK trade agreement and deepen presence across the EU, GCC, ANZ, Japan, and the Indian domestic market.
- Portfolio premiumisation: Shift focus to performance-driven and premium bed and bath programmes, alongside piloting direct-to-consumer initiatives in select regions.
- Financial discipline: Strengthen cost-control and productivity measures to counter input and logistics inflation, safeguarding margins during volatility.
Commenting on the development, Hari Thiagarajan, Chairman & Managing Director, said, “While the US market currently contributes a significant proportion of VTM’s total sales, we have a defined roadmap to minimise tariff-led headwinds. Although this may lead to some short-term volatility, we remain prepared to deliver on our medium- to long-term objectives. Our immediate priorities are ensuring business continuity in the US, proactively engaging with our customers there, and working out solutions to maintain our relevance in that market. We are also trying to diversify our product mix with higher US origin cotton which will give a US tariff exemption opportunity.”
He further added, “At the same time, we are accelerating expansion into newer geographies and value-added categories. Over the past several decades, VTM has successfully navigated tariff and demand cycles, and with a broader playbook—spanning diversification, premiumisation, stronger domestic channels supported by our robust capital structure—we remain confident of sustaining growth through near-term challenges and building momentum for the medium term. We soon expect a relief package for textile exporting companies like us, from the Government of India which will aid us in better price realisation of our export products. Going by broader market sentiments this may include interest subvention measures, increase in export incentives like RODTEP, ROSCTL and Duty Drawbacks. Removal of cotton import duty of 11 per cent would also bring down cotton yarn prices which is our major raw material. We are optimistic on the conclusion of a bilateral trade agreement between India and USA by end of the year which will rebalance trade disruptions and safeguard future exports.”