Now Reading: Zara supplier Pearl Global eyes Africa to cut US dependence
-
01
Zara supplier Pearl Global eyes Africa to cut US dependence
India's Pearl Global, a supplier to Zara, Levi's and Gap, is exploring manufacturing opportunities in North Africa and Jordan to move production closer to European customers and reduce reliance on the United…
India's Pearl Global, a supplier to Zara, Levi's and Gap, is exploring manufacturing opportunities in North Africa and Jordan to move production closer to European customers and reduce reliance on the United States, managing director Pallab Banerjee said.
The US share of Pearl's revenue has dropped to about 50% from over 85% in fiscal 2021 as the company expands in Spain, Britain, Japan and Australia. The European Union accounted for 16-17% of group revenue in fiscal 2026.
Other Indian garment exporters are also shifting. Raymond Lifestyle is increasing production at its Ethiopia facility, and Gokaldas Exports plans to ramp up capacity in Africa later this year. Pearl expects revenue growth of over 15% in fiscal 2027 and may achieve its Rs 6,000 crore fiscal 2028 target ahead of schedule.
Indian Opinion Analysis
Indian garment exporters have long relied on the US as their primary market, but the combination of shifting US trade policy under potential tariff threats and disrupted Red Sea shipping routes is forcing a geographic rethink. North Africa offers proximity to Europe under preferential trade agreements and avoids the logistic bottlenecks of Asian supply chains. For Pearl, the Guatemala experiment after COVID proved that near-shoring works. The company's ability to hit a Rs 6,000 crore revenue target two years early will signal whether the Africa bet pays off. Watch for the share of EU revenue in Pearl's next annual report as the clearest early indicator of the strategy's traction.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
