Humro Turns Tariff Challenge into Opportunity with Local Partnerships and Smart Pricing

Humro (an ARAPL RaaS brand and subsidiary of Affordable Robotic and Automation Limited, BSE: 541402, NSE SYMBOL: AFFORDABLE), a leader in autonomous material handling and robotics solutions, today announced its comprehensive strategy to address recent tariff changes impacting imports into the United States. The announcement comes at a time when the US warehouse automation market is projected to grow at a 20.6% CAGR between 2025 and 2030, rising from USD 5.78 billion in 2024 to nearly USD 16.6 billion by the end of the decade. While acknowledging that the new tariffs translate into roughly seven percent of its topline, the company emphasized that proactive measures are already in place to protect customers and maintain its competitive edge.

Beginning November, Humro will apply a ten percent price adjustment across all products to account for the additional duty. Despite this, the company's solutions will remain fifteen to twenty percent cheaper than our closest competitors.

To reduce the impact of duties, Humro has initiated Complete Knockdown (CKD) and Semi Knockdown (SKD) shipment methods and is actively partnering with local vendors in the United States.

Humro's proof-of-concept model continues unchanged. Customers can deploy machines with no upfront costs: if success criteria are met, they purchase the product, and if not, they pay a flat fee. Leasing and rental agreements will reflect the ten percent tariff-related adjustment, but the overall value remains far ahead of the competition.

The tariff environment is temporary turbulence," said Milind Padole, Founder & Managing Director of Humro. "We've built resilience into our model by combining Indian engineering strength with US-based value addition and enterprise-grade software. Even with the tariff and a modest price adjustment, Humro will deliver more value than our closest competitors. We also have a buffer in place, robots already stocked in the US before the tariff will account for nearly 50% of our sales through November. Our commitment to American customers is unwavering; we remain the most cost-efficient and innovation-driven partner in autonomous material handling. In the meantime, our CKD and SKD strategy, coupled with potential contract manufacturing in the US, allows us to turn this challenge into an opportunity, delivering savings to customers while also creating jobs locally."

"The US remains one of our most important growth markets, and the tariff environment doesn't change that," said Robinson Philipose, Co-Founder & Chief Executive Officer of Humro. "We have built resilience into our model by combining Indian engineering with US-based value addition and a strong software backbone. Even with a modest price adjustment, Humro continues to deliver a clear cost advantage, 15 to 20 percent lower than our closest competitors, along with enterprise-grade reliability. Our commitment is simple: to give US customers automation that creates real value, even in a shifting policy landscape."

With its proactive steps, Humro believes the playing field between Indian and US companies remains level and that its long-term growth trajectory is intact. The company reiterated that its unique blend of affordability, speed of deployment, and software-driven efficiency continues to set it apart in a market where reliability and cost savings matter most.

Shares of Affordable Robotic & Automation Ltd was last trading in BSE at Rs. 278.80 as compared to the previous close of Rs. 348.45. The total number of shares traded during the day was 48905 in over 2643 trades.

The stock hit an intraday high of Rs. 369.85 and intraday low of 278.80. The net turnover during the day was Rs. 14323187.00.

Source : Equity Bulls

Keywords

AffordableRoboticandAutomation INE692Z01013 Humro ARAPL RaaSbrand TariffChanges