VTM Limited Announces Proactive Measures Amid New U.S. Tariffs

VTM Limited, a leading Indian home-textile manufacturer with a significant export presence in the United States, today outlined a set of actions & proactive measures to ensure supply continuity, minimise business impact, and sustain medium-to-Iongterm growth in light of newly announced U.S. tariffs on imports from India.

Proactive Measures & Mitigation Strategies Undertaken to Minimise Business Impact

1. Customer Continuity - Fulfil all confirmed U.S. orders on time while working with key accounts on shared-burden pricing solutions and assortment adjustments.

2. Market Diversification - Scale up sales in the UK under the new India-UK trade agreement, and deepen presence across the EU, Gee, ANZ, Japan, and the Indian domestic market to rebalance the revenue mix.

3. Portfolio Premiumization - Accelerate the shift toward performance and premium bed/bath programs, while piloting direct-to-consumer initiatives in select markets.

4. Financial Discipline - Strengthen cost-control and productivity programs to offset input and logistics inflation, preserving margins through volatility.

Commenting on this event, Hari Thiagarajan, Chairman & Managing Director, said: "While the U.S. market currently contributes a significant proportion of VTM's total sales, we have a defined roadmap to minimize 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 U.S., 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 U.S. origin cotton which will give a US tariff exemption opportunity.

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, premiumization, 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 realization 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% 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.

Shares of VTM LTD. was last trading in BSE at Rs. 72.20 as compared to the previous close of Rs. 68.80. The total number of shares traded during the day was 130600 in over 200 trades.

The stock hit an intraday high of Rs. 72.20 and intraday low of 70.00. The net turnover during the day was Rs. 9367522.00.

Source : Equity Bulls

Keywords

VTM INE222F01029 Textiles ProactiveMeasures USTariffs