Indian consumer companies pause West Asia expansion amid U.S.-Israel-Iran escalation
Indian consumer companies are hitting the brakes on their West Asia operations because of ongoing geopolitical conflicts.
Big names like Britannia and Godrej Consumer Products have seen business drop by up to 40%, and shipping costs have shot up almost five times since the U.S.-Israel-Iran situation escalated.
With profits under pressure, expansion plans across the region are now on hold as companies focus on staying financially healthy.
Indian brands retain UAE focus
Even with these challenges, Indian brands know West Asia, especially the United Arab Emirates, is too important to ignore, making up 5% to 20% of their revenues.
iD Fresh Food is working on long-term sourcing and mixing up its logistics routes, while Dabur continues exporting personal care products from its local plant.
Biba Fashion has also faced sales slumps but says it's sticking around for the long haul.
Despite all the uncertainty, these firms are adjusting their strategies and keeping an eye on future opportunities in the region.