R R Kabel Forecasts 16% Export Growth by 2026 Amid U.S. Tariffs on Chinese Goods

R R Kabel, an Indian wire and cable manufacturer, projects a 16% to 18% increase in export volumes by fiscal 2026, driven by U.S. tariffs on Chinese goods. These tariffs, reaching up to 145%, provide Indian exporters like R R Kabel a competitive advantage in markets such as the U.S., its fourth-largest revenue source. The company, which had one U.S. client last year, is now engaging with multiple potential clients. Exports make up 26% of R R Kabel's sales, with the U.S. contributing 10% of export revenue, highlighting its strategic importance.

U.S. Tariffs Reshape Global Trade Landscape

The ongoing U.S.-China trade tensions have led to a series of escalating tariffs, with the U.S. recently raising duties on Chinese imports to as much as 145%. In response, China has imposed retaliatory tariffs of up to 125% on American goods. These measures have disrupted global supply chains and prompted companies to reassess their sourcing strategies.

For Indian exporters, the tariff disparity has created a window of opportunity. While India is also subject to U.S. tariffs—currently at a baseline of 10%, with a 26% rate set to take effect from July 8, 2025—these are significantly lower than those imposed on China. This relative advantage is allowing Indian firms to position themselves as viable alternatives in global supply chains.

R R Kabel’s Chief Financial Officer Rajesh Jain emphasized this shift in a recent interview with Reuters, stating, “There may be challenges for China, but not for us.” He added that the company, which had only one U.S. customer last year, is now in discussions with four to five major clients, signaling growing interest from American buyers seeking to diversify away from Chinese suppliers.

Export Strategy and Market Positioning

R R Kabel’s export strategy is central to its growth ambitions. Exports currently account for 26% of the company’s total sales—a notably higher proportion than domestic competitors such as Havells and Polycab. The U.S. alone contributes around 10% of R R Kabel’s export revenue, making it a critical market for the company’s international expansion.

Despite a modest 7% volume growth in fiscal 2025—below the company’s 15% target due to election-related construction slowdowns in India and Red Sea tensions affecting global shipping—R R Kabel remains optimistic about its medium-term outlook. The company expects to more than double its volume growth in fiscal 2026, driven by increased demand from export markets and a more favorable trade environment.

Jain noted that the U.S. tariff policy has “presented an opportunity” for Indian exporters, particularly in sectors like wire and cable manufacturing, where cost competitiveness and supply chain reliability are key considerations for buyers.

Broader Trade and Manufacturing Context

The shift in global trade flows is not limited to R R Kabel. Across Asia, manufacturers are responding to the U.S.-China tariff standoff by relocating production and diversifying supply chains. According to industry reports, the Asia-Pacific region remains a resilient hub for wire harness and cable production, supported by low-cost labor, improving infrastructure, and government incentives.

India, in particular, has been actively promoting itself as a manufacturing alternative to China. Government initiatives such as the Production Linked Incentive (PLI) scheme have helped boost electronics and component exports, which nearly doubled from ₹233.9 billion in FY21 to ₹473.4 billion in FY22. However, India still accounts for just 2% of global electronics production, compared to China’s 60%, highlighting the scale of the challenge ahead.

Despite structural hurdles—including infrastructure bottlenecks, supply chain gaps, and regulatory complexities—India’s export sectors are beginning to benefit from the global realignment of trade relationships. The U.S.-India trade dialogue has also gained momentum, with discussions underway for zero-for-zero tariff arrangements on select goods, including steel and auto parts.

Industry Implications and Competitive Dynamics

R R Kabel’s export-driven growth strategy underscores a broader trend among Indian manufacturers seeking to capitalize on geopolitical shifts. The company’s ability to scale its international presence, particularly in the U.S., could serve as a model for other mid-sized Indian exporters aiming to move up the value chain.

While larger players like Polycab and Havells continue to dominate the domestic market, R R Kabel’s higher export share positions it uniquely in the global arena. The company’s agility in responding to trade policy changes and its proactive customer engagement in the U.S. market are key differentiators.

Moreover, the wire and cable industry is closely tied to infrastructure and construction cycles, both domestically and abroad. As global demand recovers and supply chains stabilize, companies with diversified export portfolios and tariff-compliant production bases are likely to be better positioned to capture growth.

References

• India's R R Kabel sees volume surge by 2026 as US tariffs present 'opportunity'
• Trump tariffs live updates: No plans for Trump-Xi talks, Ackman floats China pause
• India’s electronics manufacturing push needs policy stability | Policy Circle
• Wire Harness Market Hit USD 140.6 Bn by 2033
• Indo-US trade deal in works: India offers zero-for-zero tariffs on steel, auto parts, says report - Times of India
• Trendlyne Blog: Trendlyne Marketwatch, Latest on stock market and finance in India and the world.