Indian Companies Scale Back Operations in Gulf Amid Rising Costs and Declining Sales
India Inc pulls back a bit from Gulf as cracks widen across operations
The Economic Times
Image: The Economic Times
Indian consumer companies are reducing their operations in West Asia due to significant losses, with some reporting business declines of up to 40%. The ongoing US-Israel-Iran conflict has exacerbated challenges, including a fivefold increase in shipping costs, prompting firms to pause expansion plans.
- 01Indian consumer companies are facing a decline in business in West Asia, with losses reaching up to 40%.
- 02Container shipping costs have surged nearly fivefold since the start of the US-Israel-Iran conflict.
- 03Companies like Dabur and iD Fresh are adjusting their strategies to safeguard profitability.
- 04Despite challenges, some firms, such as Biba Fashion, remain optimistic about the region's recovery.
- 05The Gulf region is crucial for Indian brands, contributing 5% to 20% of their revenue.
Advertisement
In-Article Ad
Indian consumer companies are scaling back their operations in West Asia as they face steep losses, with some reporting a 40% decline in business. The ongoing US-Israel-Iran conflict has led to a significant increase in shipping costs, rising nearly fivefold since the conflict began. Industry leaders, including PC Musthafa (CEO of iD Fresh Food) and Piruz Khambatta (chairman of Rasna Group), have highlighted the need to recalibrate investments and focus on profitability. Many companies, such as Dabur and Britannia, derive 5% to 20% of their revenue from this region, making it a critical market. While some firms are pausing expansion plans, others like Biba Fashion remain committed to the market, expressing hope for recovery as conditions improve.
Advertisement
In-Article Ad
The scaling back of operations by Indian companies could lead to job losses and reduced market presence in West Asia, affecting both consumers and employees in the region.
Advertisement
In-Article Ad
Reader Poll
How should Indian companies respond to challenges in the Gulf market?
Connecting to poll...
Read the original article
Visit the source for the complete story.