Indian Textile Giant Raymond Considers Shifting Production to Ethiopia
In a major strategic move, Raymond Ltd., a prominent Indian textile company, is exploring the option of moving some of its production to Ethiopia. This decision is a direct response to new tariffs imposed by the United States on Indian goods.
According to Raymond's CFO, Amit Agarwal, the U.S. market is a significant revenue source, accounting for 50-55% of the company's garment income. The company already produces 30% of its U.S.-bound products at its existing factory in Ethiopia.
The Ethiopian facility has the spare capacity to absorb additional production, offering Raymond a flexible solution to overcome the new tariffs. This shift would allow the company to maintain its competitive edge and continue serving the U.S. market efficiently.
Raymond is also considering other countries, such as Bangladesh and Vietnam, as potential alternative manufacturing locations. This development highlights Ethiopia's growing importance as a manufacturing hub, attracting international businesses with its strategic advantages.
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