Which all trends do you notice currently amongst consumers demand? How do your products acquiesce with these trends?
Mr Harsh Piramal
Consumers are increasingly switching to cheaper products, and prices are coming under pressure. However, there is a niche market for high-end fabrics that exists even today. We are fortunate that we have focused exclusively on high-end markets for the past 10 years and are not saddled with large capacities. We continue to serve this market today, and are trying to offer our customers better value from the same product.
fibre2fashion:
Myriad of players are there in line to your business kind. In the face of such a fierce competition, what helps your Company maintain its popularity?
Mr Harsh Piramal
We are fortunate that in several of our products, we are recognised to be world class in terms of quality. As I mentioned earlier, we are trying to give our customers better value from the same product, for example by providing shorter delivery times or by changing the fabric construction to reduce cost.
fibre2fashion:
How would you like to comment on upshots of disparity in Indian Cotton Prices in comparison to international prices? Your major fabrics are cotton made, how do you handle such situations in order to safeguard your profit margins?
Mr Harsh Piramal
Morarjee uses imported cotton for its shirting fabric as we require long staple quality cotton to produce premium fabric. The cost of imported cotton has reduced recently from its peak 6 months or so ago. The other thing that we do is cover cotton prudently when price trends are more favourable.
fibre2fashion:
In current hard times for industry, Indian government has been considerate to announce various cuts on energy prices, Repos/ Reverse Repos and stimulus packages for textile industry. How do you find these announcements biding for your business?
Mr Harsh Piramal
There were two major decisions. One was to reimburse part of the interest on the loans obtained under the TUFS. While this policy was in place, the reimbursements took very long. The government has decided to clear the dues as a result of which companies will have some more inflows. Secondly, the government has increased the moratorium period for repayment of loans by an additional year. These decisions will give the industry a breather going forward.
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