Despite continuous economic hardship in the US and Europe, Indian
apparel firms’ order books continue to get filled, so much so they are
busy till atleast September, dispatching orders to their US and European
customers..
Increase in volumes garnered pace quite steeply during the recent months
as international customers who had sliced their budgets initially are
again returning in surplus..
However, exporters are yet to full rejoice this new dawn, as pressures
continue to build up on pricing, mainly due to, the appreciation of
rupee and powerful competition from suppliers of the neighbouring
nations such as Bangladesh..
With rivals, as mentioned aforesaid, selling their apparels at a 25
percent lower price, Indian exporters are forced to slash their clothing
prices..
Therefore, although volumes are rising, margins are not. Owing to reduce
prices, value of India’s garment exports dived by 10 percent to $9.7
billion for the fiscal ending March, as compared to the last year..
But in the market, while few firms aver that, there is constriction on
the cost of apparels, others are of the opinion that, fresh orders will
be booked at new prices, which will nip margins, thanks to the swing in
currency..
However, flow of surplus orders, still comes as sigh of relief for
exporters, who were being pushed in to darkness, following the world
economic meltdown..
Date:6/30/2010
Source:Reuters