Kochi, 8th
April 2025 : The US Government announced reciprocal tariffs on all goods being
imported to the US, which will have major impact on global trade, disrupting
the established supply chain. The tariff proposed for India is 26% on all
products exported to the US, including seafood. India exports seafood worth
approximately USD 2.5 billion of which shrimp constitutes about 92%. The
proposed tariff will significantly increase the cost of seafood products in the
US market which will ultimately be borne by the US consumers.
As per media reports,
about Rs. 2000 crores worth of seafood products from India are in transit or awaiting
clearance at the US ports creating an uncertainty on how the increased duties
will be shared between the US importers and the Indian exporters. There are
also certain forward contracts which may need to be renegotiated after a full
clarity is available on how the tariffs will be implemented.
Kings Infra is well insulated and the new tariff will not have any
significant impact on its business as the company has no shipments currently in
transit to the US. The US market share of the company’s products was only 4.3%
of the total turnover in the previous financial year as the Board of the
company had taken a strategic decision to defer a major entry into the US
market for a year until we have complete clarity on the duties and tariffs.
The company has set in place a well laid out strategic plan to counter
the medium term and long-term effects of such international trade barriers in
the current global scenario which is moving away from globalization of supply
chains to more protectionism of their own markets by various countries.
The company has strong business relationships in the European
market and we have a Business Development Advisor based in Spain to further
expand the business in the European markets. The company also has decades long
relationships with Japan and the present scenario presents a great opportunity
to renter the Japanese market who has been the number one buyer of Indian
products up to late 90s and early 2000s. The company’s brands have a very good
presence in the retail market in China.
The major suppliers in the value-added products segment to
the US market are the companies in Vietnam, China and Thailand who reprocess
for the American market. All these
countries have higher tariffs imposed on them, compared to India. This presents
a golden opportunity for India to diversify and upgrade our products to cater
to this segment.
The Indian domestic market offers the highest potential for
the aquaculture and seafood companies, as
the growing population in India also need high quality protein which is best
available from seafood. We intend to refocus our
business model by aggressively creating a consumer base for the high quality,
high protein ready-to-eat and ready-to-cook Kings Bento and Kings Frigo
products in the Indian market. A new IQF factory with facilities for retail and
retro packing is being set up at Tuticorin.
Further strengthening its operations, the company continues to invest in
sustainable Aquaculture practices, Kings Maritech Eco Park, SISTA360 and Animal
Healthcare Division to produce highest quality at most affordable prices. Kings
Infra’s commitment to innovation and sustainability underscores its long-term
growth strategy, ensuring it remains protected from geopolitical trade
fluctuations.