Apparel Online India Magazine October 1st Issue 2018 | Page 9
MIND TREE
other payments, buyers raise
the issue to adjust the same.
Whatever product they were
taking earlier in for US $ 3 to 4,
they want to get the same now
in US $ 3, just because of the
weakening rupee. So, it is not
a big difference for exporters
like us. Yes, there is little ease in
market competition, that is the
only benefit.
I do hedge but only some times,
and not on regular basis; if
rupee goes above 75, then only
I will hedge. As we are more into
value-added garments rather
than bulk, so we can always
cover the small amount within
our own workmanship rather
than hedging.
Anil Peshawari, MD,
Meenu Creation, Noida
Indian currency depreciation
is not going to benefit the
Indian apparel exporters much,
especially looking at the global
perspective. The Chinese Yuan
depreciated nearly 10 per cent
and China’s has 34 per cent
share in the global apparel
trade and this country does
every product. So, we don’t
have any benefit against China
which is our main competitor.
Turkey’s Lira depreciated more
than 50 per cent. Turkey, which
earlier was doing mainly knitted
garment, is now focusing on
woven garments also. Due to
these two latest developments
and proximity advantages,
Europe is importing more
from Turkey.
Now coming to Bangladesh, it
is okay that Bangladeshi Taka
depreciated just 2 per cent or
little more in recent months,
but Dhaka already has a lot of
NEXT MINDTREE QUESTION
Fabric sourcing is one of the most challenging tasks, no matter whether you
directly work with mills, C&F agents or source yarn and get it weaved and
processed… What is your strategy to ensure smooth fabric sourcing from
selection to quality assurance to timely delivery? Have conditions improved
over the years on this front?
advantages against India.
India’s exporters were already
working on nominal margins
and now to get orders, they
are passing or having to pass
through the minor benefit of
rupee depreciation to the
buyers. Major depreciation in
Indian rupee has happened
in recent three months only.
One should not forget that if US
imposes the tariff on Chinese
apparel, China will move more
aggressively to EU, and can also
supply apparel on extremely
low cost as they have to keep
their capacities occupied.
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www.apparelresources.com | OCTOBER 1-15, 2018 | Apparel Online India
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