Bicycle manufacturer and exporter Hero Ecotech, which supplies to international buyers such as Walmart, Decathlon and Disney, shifted to diesel from industrial gas citing unavailability of the latter.
The move has added to the company’s costs, said Gaurav Munjal, managing director, Hero Ecotech. “LPG unavailability and expensive components in March were an issue…. We are unable to pass on the price burden in the export market because they have options.”
The company produces 200,000 bicycles at its Ludhiana plant, of which around 60% are exported to the US and Europe. Moreover, the input costs of plastics, rubber, tiles and steel tubes surged about 50-60% in 2025-26.
Ludhiana-based garment maker Eveline International, which counts Pepe Jeans, Benetton and Faherty among its clients, said the US tariffs and now the war are creating difficulties for businesses. “Orders are on hold. There is uncertainty everywhere” said Eveline International director Deepak Dumra.
Exporters are hopeful of a resolution to the West Asia conflict. It is crucial for India as the country depends heavily on the Strait of Hormuz for its crude oil imports and energy security.
Manufacturers said the hit to business would be substantial if the US-Israel war against Iran continues for a few more weeks.Amritsar-based rice exporter DRRK Foods, which processes basmati rice, said it couldn’t export to the region in March due to the war. “We export around 80% of our products and the Middle East is our largest market. There is a 20-25% fall in shipments. The majority of ports are not functional and Khor Fakkan port doesn’t have the capacity to handle so much cargo,” said Viren Marwaha, assistant director (sales and marketing), DRRK Foods.
Freight charges, marine insurance premiums and port handling expenses have surged, impacting profitability.