Corrected: Zara clothing supplier Pearl Global evaluates manufacturing closer to Europe (Aug 25)

Pearl Global Industries

25/08/2026 06:12

Corrects August 25 story to remove references to Africa and Jordan from headline and paragraph 1 after company clarification
By Praveen Paramasivam
Aug 25 (Reuters) - India's Pearl Global PGIL.NS is evaluating manufacturing opportunities closer to Europe as the Zara clothing supplier looks to diversify beyond the United States, a top executive said.
The potential move reflects a broader recalibration by Indian garment manufacturers, which are looking to tap growing European demand amid shifts in U.S. trade policy and disruptions to global shipping routes linked to Middle East tensions.
"We are again evaluating things," Managing Director Pallab Banerjee told Reuters, adding that Pearl, which also supplies Levi's and Gap apparel, could pursue partnerships closer to Europe.
The clothing manufacturer, which also has operations in  Bangladesh, Vietnam, Indonesia and Guatemala, counts the U.S. as its largest market but the country's share of Pearl's revenue has steadily reduced to about 50% currently from more than 85% in fiscal 2021 as it expands in Spain, Britain, Japan and Australia.
The European Union accounted for 16% to 17% of group revenue in fiscal 2026.
Rival Raymond Lifestyle RAYL.NS, which counts Ted Baker and Charles Tyrwhitt among its customers, is increasing production at its Ethiopia facility as European orders grow.
Gokaldas Exports GOKL.NS, which manufactures in Kenya and Ethiopia besides India, also expects to ramp up its existing capacity in the continent later this year as Indian apparel exporters seek to lower their dependence on the U.S. market.
Pearl set up operations in Guatemala, in Central America, after the COVID pandemic to better supply its U.S. clients, Banerjee said.
The company also expects revenue growth of more than 15% in fiscal 2027 after reporting a 12% rise in the previous year. Banerjee also said the company could achieve its fiscal 2028 revenue target of 60 billion rupees ($626.75 million) ahead of schedule.
Its revenue stood at 50.25 billion rupees in the year to March 31.

($1 = 95.7325 Indian rupees)

 (Reporting by Praveen Paramasivam in Chennai; Editing by Dhanya Skariachan and Sonia Cheema)
 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))