R R Kabel to Redirect Exports from US Market Amid 25% Tariffs

Mumbai, India - R R Kabel, a prominent Indian manufacturer of wires and cables, announced it will be redirecting its exports from the United States to other international markets. The decision comes in response to a 25% tariff imposed by the U.S. on certain Indian goods, which the company states has significantly impacted the competitiveness of its products in the American market.

Strategic Pivot Amid Trade Challenges

The tariff, part of a broader shift in U.S. trade policy that saw the withdrawal of benefits under the Generalised System of Preferences (GSP) program, has prompted R R Kabel to re-evaluate its export strategy. "I am not going to supply to the U.S. with this extra cost," stated Shreegopal Kabra, Managing Director of R R Kabel. "We have become uncompetitive. We are, therefore, diverting our exports to other countries."

In the fiscal year 2024, R R Kabel's total exports amounted to ₹7.02 billion ($84.3 million), with the U.S. market accounting for approximately 10% of that figure. Previously, the U.S. was the company's second-largest export destination.

New Focus on Domestic and Global Markets

To compensate for the potential loss of business from the U.S., R R Kabel is shifting its focus towards other promising regions.

• New Export Destinations: The company will now prioritize markets in Europe (including the UK and Germany), Australia, Asia, and the Middle East.
• Domestic Market Strength: Simultaneously, R R Kabel plans to bolster its footprint within India. "India is a huge market and a developing nation and is currently witnessing a phenomenal growth," Kabra noted. The company aims to increase its number of domestic channel partners from 2,000 to 5,000.

Financial Outlook and Market Reaction

Despite the significant change in its export strategy, the company's leadership remains optimistic. R R Kabel does not anticipate a major impact on its performance in the current fiscal year, as it expects to successfully reallocate its U.S.-bound shipments to other regions. The company, which has been growing at a CAGR of 20% in recent years, aims to maintain a similar growth trajectory, targeting a revenue of ₹4,000 crore this year. The market responded positively to the news, with shares of R R Kabel closing 2.2% higher following the announcement.