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01/09/2025 10:49

VTM Limited unveils measures to mitigate impact of new U.S. Tariffs

Home-textile maker VTM Limited announced a series of proactive steps to cushion the impact of newly imposed U.S. tariffs on Indian imports. The company said the measures are aimed at ensuring supply continuity, protecting margins, and sustaining medium- to long-term growth.

The action plan includes timely fulfillment of confirmed U.S. orders, joint pricing solutions with key customers, and assortment adjustments. VTM also plans to scale up sales in the UK under the new India–UK trade agreement and expand its footprint across the EU, GCC, ANZ, Japan, and the Indian domestic market. Additionally, the company will accelerate its shift toward premium and performance-based product lines, pilot direct-to-consumer initiatives, and strengthen cost-control programs to manage inflationary pressures.

Chairman and Managing Director Hari Thiagarajan said the U.S. remains a key market, but the company has a clear roadmap to minimize tariff-related headwinds. “While short-term volatility is inevitable, we are confident of achieving our medium- to long-term objectives by diversifying markets, premiumizing our portfolio, and leveraging our strong domestic channels,” he noted. He also added that increased use of U.S.-origin cotton could help the company qualify for tariff exemptions.

Thiagarajan expressed optimism about government support for textile exporters, including possible relief measures such as interest subvention, higher export incentives under RoDTEP and RoSCTL, duty drawback benefits, and removal of the 11% cotton import duty to ease raw material costs. He further said the industry expects a bilateral trade agreement between India and the U.S. by year-end, which could help rebalance trade disruptions and safeguard exports.