Supply chains buckle under Gulf tensions, forcing Apple distributor Redington to scale back operations as rising costs and delayed payments strain working capital.
Redington, a Chennai-based technology solutions provider and a distributor of Apple products in India, has announced that its subsidiary Redington Gulf FZE is restricting operations in the Gulf region to conserve working capital.
The decision comes in response to escalating geopolitical tensions that have disrupted logistics and increased costs.
The company said re-routing of shipments and the closure of key ports and airspace have extended transit times, while higher inventory levels and delayed customer payments have added pressure on working capital.
In an exchange filing, Redington noted that freight, insurance and logistics costs have risen sharply, with insurers withdrawing war-risk coverage for firms operating in the region. Alternative arrangements are being explored.
Enhanced safety protocols and business continuity plans have been implemented across affected locations, with Redington emphasising compliance with international regulations, trade restrictions and sanctions. However, the company stated that the financial impact of the disruption cannot yet be quantified, as it will depend on the duration and severity of the situation. Updates will be provided to stock exchanges as developments unfold.
Despite the challenges, Redington reported strong financial performance in the December quarter, with revenue rising 15.7% year-on-year to ₹309.21 billion. Growth was driven by a 25% increase in India, a 19% increase in the UAE, and a 14% increase in Africa. Apple remained the largest vendor, contributing 33% of total revenue.
The company’s move highlights the vulnerability of regional operations to geopolitical instability and the strain such disruptions place on supply chains and capital management.
While near-term measures focus on preserving liquidity, the longer-term outlook will hinge on resolving tensions and restoring stable trade routes.
