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Apparel exporters enjoy surplus orders
Jun '10
Country's leading apparel exporters are enjoying the surplus order coming in from Europe and US. However, incessant pressure on margins does not give these companies the leverage to relax, thanks to sudden increase in demand from these major markets. The demand for Indian apparels is finally stabilizing.

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.

Fibre2Fashion News Desk - India

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