Vardhman Textile, KPR Mill, Arvind & Nitin Spinners Share Price Rise as US Tariff Hits Asian Competitors

Market Performance: Textile Stocks React to US Tariff News

Indian textile stocks saw a notable surge after the US government announced higher reciprocal tariffs on key Asian textile-exporting nations. While India faces a 26% tariff, other competitors such as Vietnam (46%), Cambodia (49%), and Bangladesh (37%) face more challenges due to higher tariffs..

This differential offers Indian textile exporters a competitive edge, potentially allowing them to gain greater access to the US market even after factoring in tariff-related costs.

As a result, key textile stocks witnessed significant upward movement:

• Vardhman Textiles saw an impressive 18.41% price increase on April 3
• KPR Mill gained 7.57% on April 2, followed by an additional 2.74% on April 3
• Arvind rose 5.99% on April 3
• Nitin Spinners jumped 9.26% on April 3

However, minor corrections were observed today as markets digested the news, possibly due to profit-booking and a cautious global sentiment.

Tariff Disparity: A Boon for Indian Textile Exporters

While the US has taken a protectionist stance across many sectors, the textile tariff structure favours India over other Asian producers. This allows Indian companies to strengthen their market in the US, especially in price-sensitive segments like yarns and fabrics.

Even with the 26% tariff, Indian goods remain competitively priced compared to other nations. This is expected to offer long-term advantages, and short-term fluctuations in share prices could continue.

Company Snapshots: Driving the Textile Rally

Vardhman Textiles

Founded in 1973 and part of the Ludhiana-based Vardhman Group, the company operates across yarn, fabric, sewing threads, and acrylic fibre. It is considered one of the pioneers of the Indian textile sector.

KPR Mill

With over four decades of industry experience, KPR Mill has developed a comprehensive business portfolio beyond textiles. While its core operations encompass yarn, fabrics, and garments, the company has strategically expanded into sugar production, power generation, automotive, education, ethanol production, and retail sectors.

Arvind Limited

Arvind Limited has nearly 80 years of textile expertise and ranks among the world's largest denim producers. The company manufactures an extensive range of cotton shirting, denim, knits, bottom weights, and finished garments, cementing its position as one of India's foremost textile enterprises.

Nitin Spinners

Established in 1992 in Rajasthan, Nitin Spinners is a leading manufacturer of cotton yarn, knitted fabrics, and woven textiles. Its consistent performance has made it a reliable exporter, especially in the US market.

Summary

The recent US tariff policy has inadvertently benefited Indian textile exporters by increasing the relative cost of imports from competing countries. This has sparked a significant rally in textile stocks like KPR Mill, Arvind Vardhman Textiles, and Nitin Spinners.

While current market enthusiasm may cause short-term corrections, the long-term impact on Indian textile exporters, especially in the US market, could be positive.