Raymond Lifestyle expects Europe to account for 20-25% of exports within two years, up from 17% before US tariffs.
The company expects the US share to fall to 55-60% from 65% as trade policy disruptions reshape its export strategy.
Raymond is expanding production in Ethiopia and Andhra Pradesh to meet rising European demand, particularly from the UK, Germany, France and Poland.
Raymond Lifestyle’s Big Europe Bet: Why It’s Cutting US Export Dependence
Raymond Lifestyle is looking to cut its dependence on the US as tariffs reshape global trade, targeting Europe for up to a quarter of its exports within two years
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Raymond Lifestyle plans to expand its presence in Europe to account for 25 per cent of its exports over the next two years. The strategic pivot aims to reduce the apparel maker's reliance on the United States amid shifting trade policies, Reuters reported.
CEO Satyaki Ghosh expects the US export share to decline to 55-60 per cent, while Europe's share rises to 20-25 per cent over the next two years.
The operational shift follows tariff-related disruptions in the US market. The company is now positioning itself to capture higher demand driven by India's new trade deals with Britain and Europe.
Shifting Export Dynamics
Before the implementation of US tariffs, the American market made up 65 per cent of the company's overall exports, while Europe represented 17 per cent. The US remains India's largest textile market, making up more than 25 per cent of the country's total textile exports.
India's textile exports to its top 10 European markets rose by 9 per cent to Rs 69,445 crore ($7.29 billion) during the 2025-26 financial year, the first fiscal year after Trump's announcements of "reciprocal tariffs", government data indicated. In contrast, shipments to the US fell 7 per cent over the same period.
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Overall exports generated 20 per cent, or one-fifth, of Raymond's total revenue in fiscal year 2026.
Securing European Growth
"Europe will grow faster for us," Ghosh told Reuters. He said that new trade agreements and recent customer acquisitions could trigger a "double boom" for the business.
Inquiries from Europe have risen by double digits following the trade deal announcements. About 30 per cent of these inquiries are converting into orders, with significant demand emerging from the UK.
Raymond has recently secured new customers in Poland, Germany and France. The company owns brands such as Park Avenue and ColorPlus, and counts JCPenney and Charles Tyrwhitt among its clients.
Scaling Up Production
To meet the rising European demand, Raymond is boosting output at its manufacturing plant in Ethiopia.
The company will also increase its production lines at the Andhra Pradesh site to 10 within two years, more than tripling its current capacity.