Kitex Garments bets big on apparel industry shift from Bangladesh to India

Sabu Jacob, Managing Director of Kitex Garments

India’s apparel manufacturing industry is beginning to benefit from the political unrest in Bangladesh, with many global buyers shifting their sourcing to India to meet export commitments.

Sabu Jacob, Managing Director of Kitex Garments, told businessline that around 80 per cent of Bangladesh’s apparel exports cater to the European market, largely due to duty-free concessions. However, India’s recent Free Trade Agreement (FTA) with the UK, and the anticipated duty-free access to the EU, are expected to create more opportunities for Indian manufacturers to capture a significant share of this business.

India’s trade agreements with the US—which offer either zero or very low duties—will enhance the country’s competitiveness and generate more employment opportunities. The Indian government views the apparel industry as a vital source of employment, he added.

Jacob also pointed out that a tariff pause introduced by the Trump administration has already prompted a shift in US-bound apparel manufacturing from countries like Cambodia and Vietnam to India, where tariffs are 15–20 per cent lower.

In 2024, India’s apparel export capacity was $17 billion, with the country already achieving nearly 100 per cent utilization at $16.5 billion. In contrast, Bangladesh’s apparel export capacity stands at $56 billion, while China’s is $140 billion. “This presents a significant opportunity for India to expand its footprint in global apparel exports,” Jacob said.

Production capacity

Kitex Garments is currently expanding its production capacity to 3.1 million pieces per day, backed by an investment of ₹3,500 crore in its Telangana facility. “Our Warangal unit began production in April, and our Hyderabad facility is expected to be operational by December 2026,” he added.

On the company’s performance in FY25, Jacob said Kitex achieved a record turnover of ₹1,020 crore, up from ₹641 crore—a 59 per cent increase. Profit after tax rose by 124 per cent to ₹152.6 crore, compared to ₹68 crore in the previous fiscal.

He attributed the growth to improved operational efficiency, maximum capacity utilization, and overall enhancements in factory performance.

Published on June 5, 2025