Zara, Levi’s and Gap supplier eyes North Africa as Indian manufacturers expand across continent

An Indian manufacturer that supplies global fashion brands including Zara, Levi’s and Gap is considering establishing production in North Africa as clothing companies seek factories closer to European consumers.

• Pearl Global, an Indian manufacturer supplying Zara, Levi’s and Gap, is considering manufacturing opportunities in North Africa.
• The company has not selected a country, investment amount, local partner or timetable.
• Its interest comes as Indian rivals expand existing production in Kenya and Ethiopia.
• The emerging shift could position parts of Africa closer to Europe’s fashion supply chain.

Pearl Global managing director Pallab Banerjee disclosed the company’s interest in an interview with Reuters published on Tuesday.

The company is evaluating manufacturing opportunities in North Africa and could enter the region through a partnership, Banerjee said. It has not identified a country, prospective partner, investment value or timetable.

That distinction is important. Pearl Global has not announced a factory or committed money to Africa. However, the disclosure places the continent within the expansion plans of a manufacturer that produced approximately $525 million in revenue during the financial year ended March 2026.

The company’s customers include some of the world’s most recognisable fashion businesses. Its interest also follows the expansion of other Indian garment manufacturers already operating in Africa.

Raymond Lifestyle is increasing production at its factory in Ethiopia as orders from Europe grow. Gokaldas Exports, another major Indian clothing producer, has factories in Kenya and Ethiopia and expects to expand its African production capacity later in 2026.

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Pearl Global’s possible entry could therefore be part of a developing shift in which Indian manufacturers use African factories to serve European markets.

North Africa offers relatively short shipping routes to Europe compared with production centres in South and Southeast Asia. Manufacturing closer to customers can reduce delivery times and limit exposure to disruptions along longer maritime routes.

Pearl Global’s interest comes as the company reduces its historical dependence on the United States.

The US contributed more than 85% of its revenue in the 2021 financial year. That share has since fallen to approximately 50%, while Europe accounted for about 16% to 17% of revenue during the year ended March 2026.

Pearl Global is targeting revenue of approximately $627 million by 2028, although Banerjee said the company could reach that level earlier. It expects revenue to grow by more than 15% during the current financial year.

Its latest investor presentation⁠ shows that quarterly revenue increased 24.5% to ₹15.28 billion during the three months ended June.

Pearl Global currently manufactures across India, Bangladesh, Vietnam, Indonesia and Guatemala. Planned additions in Bangladesh are expected to raise its annual installed capacity to approximately 108 million pieces.

The company said global brands are increasingly looking for suppliers that can manufacture across several countries and adjust production when tariffs, wars or shipping disruptions affect a particular market.

An African operation would add another region to that network while giving Pearl Global a potential base closer to its growing European customer market.

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However, the eventual benefits for an African host country would depend on the structure of any agreement. A factory could create employment and export revenue, but its economic value would also depend on local sourcing, worker training, domestic ownership and whether higher-value activities such as design and textile production are included.

For now, the confirmed development is that Pearl Global is examining North Africa. The stronger signal comes from combining that interest with the factories its Indian competitors are already expanding in Kenya and Ethiopia.

Together, the moves suggest that parts of Africa are being assessed not only as consumer markets for international fashion brands, but also as alternative production centres in a changing global clothing supply chain.