Zara Supplier Pearl Global Evaluates North Africa and Jordan Expansion to Meet Growing European Demand

Pearl Global, a major clothing manufacturer and supplier to brands such as Zara, Levi's, and Gap, is exploring manufacturing opportunities in North Africa and countries like Jordan. According to Managing Director Pallab Banerjee, the company is evaluating these potential partnerships to move production closer to European customers and diversify its operations beyond the United States.

This potential move reflects a broader recalibration by Indian garment manufacturers. Companies are seeking to tap into growing European demand amid shifts in US trade policy and disruptions to global shipping routes linked to Middle East tensions. Pearl Global currently has operations in Bangladesh, Vietnam, Indonesia, and Guatemala. The company established its operations in Guatemala after the COVID-19 pandemic to better supply its US clients.

While the United States remains Pearl Global's largest market, its share of the company's revenue has steadily decreased to about 50 percent, down from more than 85 percent in fiscal 2021. This decline coincides with the company's expansion in Spain, Britain, Japan, and Australia. The European Union accounted for 16 percent to 17 percent of group revenue in fiscal 2026.

Other Indian apparel exporters are following a similar trajectory to reduce their dependence on the US market. Rival firm Raymond Lifestyle is increasing production at its Ethiopia facility as European orders grow. Similarly, Gokaldas Exports, which manufactures in Kenya and Ethiopia alongside India, expects to ramp up its existing capacity in the African continent later this year.

On the financial front, Pearl Global reported a 12 percent revenue rise in the previous year and expects revenue growth of more than 15 percent in fiscal 2027. Furthermore, Banerjee stated that the company could achieve its fiscal 2028 revenue target of ₹60 billion ($626.75 million) ahead of schedule. The company's revenue stood at ₹50.25 billion in the year leading up to March 31.

"Pearl Global's strategic pivot toward North Africa and Jordan highlights a crucial lesson in supply chain resilience and market diversification. As geopolitical tensions and shifting trade policies impact traditional shipping routes, manufacturers must adapt by locating production closer to emerging demand centers like Europe. By reducing dependence on a single primary market and actively scaling regional operations, mature businesses can protect their margins, maintain steady revenue growth, and safeguard against global trade disruptions." — Dr. Shishir Gupta, Founder & CEO, StartupLanes