Raymond CEO Eyes Europe for Major Export Growth as Apparel Maker Reduces US Reliance

Raymond CEO Eyes Europe for Major Export Growth as Apparel Maker Reduces US Reliance​

Diversifying Markets: Why European Expansion is Key for Indian Garment Giants​

Raymond Lifestyle is strategically targeting the European market, aiming for it to account for roughly a quarter of its total exports within two years. This expansion is part of a broader industry shift as Indian apparel makers reassess their reliance on the United States amid ongoing trade policy disruptions. The CEO, Satyaki Ghosh, stated that this focus on Europe is crucial for future business growth and market diversification.

The move comes as the US remains India's single largest textile and apparel export market, accounting for just over a quarter of the country's total exports. However, Raymond plans to actively de-risk its dependence on the American consumer base in the near term.

Shifting Export Targets: Projected Decline in US Market Share​

Previously, before tariffs imposed by former U.S. President Donald Trump, the United States accounted for 65% of Raymond's total exports, compared to 17% for Europe. CEO Ghosh projects a shift in these proportions over the next two years. He anticipates that the US market share will decline to between 55% and 60%.

Crucially, he expects European demand to rise significantly, targeting a 20% to 25% contribution from the continent. Ghosh noted that Europe is set to be a faster-growing region for the company.

The Rise of European Demand and New Business Partnerships​

The anticipation in Europe is growing rapidly, fueled by trade deals India has signed with both Britain and continental Europe. Ghosh reported that European inquiries have increased significantly, with roughly 30% converting directly into orders. This pipeline includes burgeoning business from the United Kingdom.

Raymond has already secured new international customers across multiple regions. The company’s existing clientele includes JCPenney and Charles Tyrwhitt. Furthermore, Raymond has added fresh business partners in key European countries such as Poland, Germany, and France.

Operational Strengthening to Meet Global Demand​

The strategic pivot towards robust exports requires significant operational scaling by the company. To accommodate rising orders emanating from Europe, Raymond is actively stepping up production capacity. The company's Ethiopia plant will see increased output to meet this growing international demand.

In addition to foreign market expansion, domestic capabilities are also being bolstered. The Andhra Pradesh plant in Southern India is scheduled to have its production lines more than tripled over the next two years, reaching a total of 10 lines.

Broader Industry Trends in Apparel Exports​

On a national scale, Indian textile and apparel exports show positive signs for Europe as exporters diversify away from the US focus. In the fiscal year 2025-26, India's total exports to European countries among its ten largest markets reached 694.45 billion rupees. This marked a 9% increase in this segment of the industry.

In contrast, data indicated that exports to the United States fell by 7% during the same period. For context, exports constituted a fifth of Raymond's revenue in fiscal 2026.