Vijay Jindal, SPL Limited, Faridabad
We are in a market which is facing global competition, so asking to increase the price can make business slip. So, rather than increasing the price, we need more support from Government to increase RoSL and duty-drawback rates to 5 % which industry is demanding.
Vikram Jit Singh, Director, Fiori Creations, Faridabad
It is oft-repeated and absurd demand. Let me begin with two simple questions. When was the last time you worried that your mobile plan from your telecom company could be making loss for the company? Would you pay more than other available plans to ensure your service provider makes a fair profit? Your answers will be‘ Never ' and‘ No’, respectively. In theory, our customers should pay a fair price considering their requirements whether it is design, compliance, quality, or environmental standards. Those who want us to hold to certain behaviour must be willing to pay for the privilege of assuring their customers that their entire supply chain operates in a certain way. However, as we
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all know, in reality, it is simply‘ might is right’. Orders get placed based on‘ cents and not standards’. Sufficient paperwork is generated on file to show adherence. Any deviation can simply be blamed on the factory later. We are competing in a globalised, fiercely competitive open market. The ways to approach it is to work on speed, cut waste and develop niches. That will pay off, either in savings or higher prices. The other sensible option is to leave those orders where there is no profit. Try that for a change.
G. Manikandan, CEO, Apparel Global Consulting, Cossmo Tex, Tirupur
I would certainly not say that the request by TEA will make a negative impact on export sales. However, 10 % is not a wise thing. More importantly, we dearly need to address the internal costing factors seriously as there is no mechanism to control these. Yes, it is high time to look at our supply chain and manufacturing efficiency. The unseen margin is to be found by us and not by customers since their economy is not doing better than us to absorb higher prices. More chances are that they will look for new avenues to source their demand.
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SP Mundra, MD, Rajat Collections, Bangalore
I perfectly agree with the view that any increase in the selling price will completely jeopardise the already dwindling exports. The prices from our emerging competitors are lower. please take a survey of prices in Cambodia, Vietnam etc., and one will see what we are staring at. In addition, the overseas buyers nowadays are extremely smart. They keep a tab on our falling rupee and immediately pounce on us to reduce the prices! Where is the question of an increase? With several overseas buyers having their buying agents in India, these buying agents are also guilty of keeping the buyers educated on the exchange rate scenario.
M. Ganesh Babu, Proprietor, Sudarsan Clothing Co., Tirupur
This move is undoubtedly a good one. Tirupur garment exporters are providing such quality and services to command that 10 % premium from the buyers. And now that the price increase is an index, we exporters will be able to pocket it. Fashion is variety. I have never seen two people in the same kind of outfit. So
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as long as this remains true, Tirupur ' s garment production will remain indispensable in the world of textiles. For our strengths lie in small quantity runs, short deliveries, multiple tires of sampling and coping with last minute changes. All this, however, means spiralling fixed overhead costs to run our factories. The Government too needs to develop a consistent policy towards garment exports. Most part of this regime was spent neglecting exports, saving on its sops and pleasing the WTO. After the failed FDI attempts, the Government is knocking at our doors once again. The duty-drawback needs to be increased to at least 5 % overall. Otherwise we garment manufacturers will be left with no other choice but to look at Ethiopia or Vietnam to build additional capacities.
Zahir SAIT, International Trading Company, Tirupur
The textile industry is the only industry which shifts its country according to cost. Increasing the selling price by 10 % is not going to solve the issue of being competitive. Tirupur is known for its mass market clients who are very price-sensitive and is also not popular for valueadded products. I believe the
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