With US President Donald Trump’s 50% tariff on imports of Indian goods creating uncertainty across sectors, Shrenik Ghodawat, Managing Director of Sanjay Ghodawat Group, emphasises that industries such as apparel, textiles, gems and jewellery, and seafood, which are heavily dependent on the US market, must rapidly diversify their export destinations to mitigate the effects. While the full impact will require time to evaluate, projections suggest next year’s GDP growth may decline by 0.4 to 1 percentage points, Ghodawat notes. In an interaction with ET Digital, Ghodawat discusses the Trump tariffs, his group’s future plans, organised supermarkets, rural demand, and more. Edited excerpts:
The Economic Times (ET): What’s your assessment of the impact of Trump’s tariffs on India’s export sector?
Shrenik Ghodawat (SG): The 25% additional tariffs imposed by the US could be a significant setback for India’s exports. The US is our largest export market, accounting for about 18% of our shipments (worth $86.5 billion annually) and roughly 2.2% of our gross domestic product (GDP). If Indian goods become 50% costlier, customer demand will be hit, especially in sectors like apparel, textiles, gems & jewellery, and seafood, where the US is a major buyer.
These industries will need to diversify markets quickly to cushion the blow. While the full impact will unfold over time, estimates suggest that next year’s GDP growth could slow by 0.4 to 1 percentage point.
ET: Sanjay Ghodawat Group’s FMCG arm exports its diverse product portfolio spanning refined oils, wheat flour, rice, beverages, and snacks. What kind of impact do you see on your exports amid Trump’s tariffs? Are you relooking at your export strategy?
SG: Our export contribution from the US market is not very significant. Therefore, we don’t anticipate much impact on our overall exports.
ET: The Group also operates in the consumer products and retail segments. How do you view the current demand shift from urban to rural markets?
SG: According to various estimates, India’s rural FMCG market is thriving, with volumes growing at high single digits compared to low single digits in urban areas. We are well-positioned to capture this demand through our consumer and retail businesses. Ghodawat Consumer Limited (GCL) continues to invest in a rural-focused distribution strategy, while Ghodawat Retail Pvt Ltd (GRPL) is steadily expanding its rural footprint through Star Localmart stores. From tailoring product offerings to meet the unique needs of rural consumers to running localised marketing campaigns that truly resonate, both businesses are strategically placed to benefit from this shift in demand from urban to rural markets.
ET: What is the current number of retail stores operated by the Group? You have previously mentioned a focus on underserved regions and tier IV, tier V, and tier VI towns. What’s the strategy behind this approach?
SG: We currently operate more than 125 Star Localmart stores. Our mission is to bring “Modern Retail experience to Bharat,” focusing purely on smaller towns and villages of India. We want to go to the bottom of the pyramid, which most of the current players are unlikely to look at for the next five to seven years. There are no organised supermarkets in such places. We know the challenges a shopper faces when she or he is living in a small village.
We want to capture that space completely in terms of retail availability and customer loyalty. With this our aim is to become India’s largest rural retail chain, making quality groceries more accessible and affordable to everyone, and ultimately driving a positive change in the way rural communities shop for their essentials.
ET: What’s your perspective on the e-commerce versus brick-and-mortar retail debate? Do you view e-commerce as a challenge to traditional retail?
SG: I don’t see it as an “either—or” debate. E-commerce and physical retail stores serve different shopping missions. And I strongly believe that both channels can coexist and even complement each other. While e-commerce is easily accessible and provides a seamless shopping experience, retail stores offer personal interaction, immediate product availability, and a tactile experience that many consumers still value.
Rather than viewing e-commerce as a threat to traditional retail, I would consider it as an opportunity for growth and innovation. Retailers embracing technology and adapting to the changing behaviours of consumers will not only thrive but also successfully co-exist with e-commerce.
ET: What is the Group’s current market size, and what revenue and profit targets have you set for the end of 2025?
SG: While we don’t comment on specifics of our revenues and profits, we have set an ambitious target to grow fivefold as a group in the next five years. This will be fuelled by aggressive expansion across our key business verticals like aviation, FMCG, education, retail, and real estate. Star Air, our aviation arm, already flies to 26 airports with 11 aircraft, and our plan is to have a 50-aircraft fleet by 2030.
In both consumer and retail businesses, our plan is to achieve Rs 5,000 crore in top line in the next five years. We are dedicated to scaling our businesses while creating a meaningful impact on the communities we serve.
ET: What are your plans for further expansion? Are there any new mergers and acquisitions in the pipeline?
SG: As I mentioned, our ambition is to achieve fivefold growth over the next five years. And this growth will be driven both organically and inorganically. We are always looking for the right opportunity, and if it comes at the right price, we will pursue it.
ET: What is the nature of the Group’s association with MSMEs, and how does its business model support their growth, whether through raw material procurement or other means?
SG: MSMEs form an important part of India’s economic backbone, and we work with several of them across our value chains—whether as suppliers, service providers, or channel partners. While we do not have a formal MSME-specific programme at this stage, our businesses naturally engage with and support MSMEs through procurement, local sourcing, and collaborative projects. For example, in our retail business, we have 50% national brands, 30% regional brands, and 20% local brands.
We see strong potential to deepen this engagement in the future and are actively exploring ways to create more structured opportunities for MSME participation in our growth journey.
The Economic Times (ET): What’s your assessment of the impact of Trump’s tariffs on India’s export sector?
Shrenik Ghodawat (SG): The 25% additional tariffs imposed by the US could be a significant setback for India’s exports. The US is our largest export market, accounting for about 18% of our shipments (worth $86.5 billion annually) and roughly 2.2% of our gross domestic product (GDP). If Indian goods become 50% costlier, customer demand will be hit, especially in sectors like apparel, textiles, gems & jewellery, and seafood, where the US is a major buyer.
These industries will need to diversify markets quickly to cushion the blow. While the full impact will unfold over time, estimates suggest that next year’s GDP growth could slow by 0.4 to 1 percentage point.
ET: Sanjay Ghodawat Group’s FMCG arm exports its diverse product portfolio spanning refined oils, wheat flour, rice, beverages, and snacks. What kind of impact do you see on your exports amid Trump’s tariffs? Are you relooking at your export strategy?
SG: Our export contribution from the US market is not very significant. Therefore, we don’t anticipate much impact on our overall exports.
ET: The Group also operates in the consumer products and retail segments. How do you view the current demand shift from urban to rural markets?
SG: According to various estimates, India’s rural FMCG market is thriving, with volumes growing at high single digits compared to low single digits in urban areas. We are well-positioned to capture this demand through our consumer and retail businesses. Ghodawat Consumer Limited (GCL) continues to invest in a rural-focused distribution strategy, while Ghodawat Retail Pvt Ltd (GRPL) is steadily expanding its rural footprint through Star Localmart stores. From tailoring product offerings to meet the unique needs of rural consumers to running localised marketing campaigns that truly resonate, both businesses are strategically placed to benefit from this shift in demand from urban to rural markets.
ET: What is the current number of retail stores operated by the Group? You have previously mentioned a focus on underserved regions and tier IV, tier V, and tier VI towns. What’s the strategy behind this approach?
SG: We currently operate more than 125 Star Localmart stores. Our mission is to bring “Modern Retail experience to Bharat,” focusing purely on smaller towns and villages of India. We want to go to the bottom of the pyramid, which most of the current players are unlikely to look at for the next five to seven years. There are no organised supermarkets in such places. We know the challenges a shopper faces when she or he is living in a small village.
We want to capture that space completely in terms of retail availability and customer loyalty. With this our aim is to become India’s largest rural retail chain, making quality groceries more accessible and affordable to everyone, and ultimately driving a positive change in the way rural communities shop for their essentials.
ET: What’s your perspective on the e-commerce versus brick-and-mortar retail debate? Do you view e-commerce as a challenge to traditional retail?
SG: I don’t see it as an “either—or” debate. E-commerce and physical retail stores serve different shopping missions. And I strongly believe that both channels can coexist and even complement each other. While e-commerce is easily accessible and provides a seamless shopping experience, retail stores offer personal interaction, immediate product availability, and a tactile experience that many consumers still value.
Rather than viewing e-commerce as a threat to traditional retail, I would consider it as an opportunity for growth and innovation. Retailers embracing technology and adapting to the changing behaviours of consumers will not only thrive but also successfully co-exist with e-commerce.
ET: What is the Group’s current market size, and what revenue and profit targets have you set for the end of 2025?
SG: While we don’t comment on specifics of our revenues and profits, we have set an ambitious target to grow fivefold as a group in the next five years. This will be fuelled by aggressive expansion across our key business verticals like aviation, FMCG, education, retail, and real estate. Star Air, our aviation arm, already flies to 26 airports with 11 aircraft, and our plan is to have a 50-aircraft fleet by 2030.
In both consumer and retail businesses, our plan is to achieve Rs 5,000 crore in top line in the next five years. We are dedicated to scaling our businesses while creating a meaningful impact on the communities we serve.
ET: What are your plans for further expansion? Are there any new mergers and acquisitions in the pipeline?
SG: As I mentioned, our ambition is to achieve fivefold growth over the next five years. And this growth will be driven both organically and inorganically. We are always looking for the right opportunity, and if it comes at the right price, we will pursue it.
ET: What is the nature of the Group’s association with MSMEs, and how does its business model support their growth, whether through raw material procurement or other means?
SG: MSMEs form an important part of India’s economic backbone, and we work with several of them across our value chains—whether as suppliers, service providers, or channel partners. While we do not have a formal MSME-specific programme at this stage, our businesses naturally engage with and support MSMEs through procurement, local sourcing, and collaborative projects. For example, in our retail business, we have 50% national brands, 30% regional brands, and 20% local brands.
We see strong potential to deepen this engagement in the future and are actively exploring ways to create more structured opportunities for MSME participation in our growth journey.
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