Indian garment powerhouse Gokaldas Exports is rethinking its global playbook as rising US tariffs squeeze profits. Managing Director Sivaramakrishnan Ganapathi told Reuters that the company is shifting more production to Africa while ramping up sales to Europe and the UK to cushion the blow.
For years, the US has been Gokaldas’ biggest customer—accounting for roughly 75 percent of standalone sales. But steep new tariffs have tilted the playing field in favour of rivals in Bangladesh and Vietnam. In the first quarter of fiscal 2026, Gokaldas still managed a healthy 12 percent profit margin, yet Ganapathi admits that a sustained 50 percent reciprocal tariff could drag those margins into dangerous single digits. To keep relationships with top US retailers alive, the company has been swallowing some of the added costs and offering discounts.
Africa has become Gokaldas’ escape route. New facilities in Kenya and Ethiopia give the exporter a vital edge, since apparel shipped from there enters the US with a much lower 10 percent tariff. Some major clients are already asking for garments made in Africa to tap into those savings. For Gokaldas, the continent not only offers lower costs but also insurance against any future US trade actions.
At the same time, the company is eyeing Europe and the UK as its next big growth engines. Currently, these markets make up just 10 percent of turnover, but the goal is to double that share within two years. The recently signed UK–India free trade deal is expected to open new doors, boosting exports alongside existing shipments to Canada, France, the UK, and the US.
![Image of shipping containers loaded with garments at a busy African port]
With African plants ramping up and European demand growing, Ganapathi is confident Gokaldas can weather prolonged US tariffs. The company already produces around 90 million garments each year—and with its diversification strategy, it now sees itself better positioned for sustained global growth, no matter how Washington’s trade winds blow.
