Key Quantitative Figures
- US Tariff Burden: 12.5% and 25% tariffs plus approximately 4% countervailing duty (CVD)
- Overall Effective Duty Burden: Approximately 41%
- Crude Oil Price Increase: From USD 45 per barrel to USD 108 per barrel
- Resin Cost Increase: From approximately ₹3100 per kg to ₹2172 per kg (72% increase)
- Ocean Freight Rates: Increased from approximately USD 1,300 per container to USD 9,000 per container
Dates of Action
- Tariff Implementation: Effective from 1 September 2026
- Production Reduction: Effective from 29 September 2026
Impact Assessment
The additional tariff burden has resulted in increased landed cost of affected Indian-origin products, adversely affecting their competitiveness in the US market. This has placed pressure on the Company's export volumes, selling prices, and margins.
Geopolitical tensions and increased crude oil prices have directly and indirectly impacted petroleum-based and other key raw material prices. The Company has absorbed significant portions of these cost increases but finds it increasingly difficult to pass on the full increase to customers.
Operational Response
The Company has decided to temporarily reduce production levels to align with:
- Prevailing demand conditions
- Input cost pressures
- Raw material availability
- Logistics constraints
The measure is intended to safeguard business operations and stakeholder interests during challenging market conditions.
Forward Monitoring
The Company will continue monitoring developments in:
- International trade environment
- Geopolitical situation
- Raw material and consumable prices
- Container availability
- Freight rates
- Market conditions
The Company plans to progressively restore normal production levels as conditions stabilize and costs move toward more sustainable levels.