Rising rupee brings nightmares to leather exports

27 Nov '09
2 min read

The rising rupee is taking its toll of exporters who are still battling the impact of the global economic crisis and one of the sectors which could be deeply affected is the leather products industry, which has a turnover of US $4 billion.

First in the line of fire when the rupee appreciates are the profit margins, which since long have been razor thin and this development has the potential to drive the profit margins of the leather export sector in to negative territory.

The leather export industry in India also has to contend with other countries like China, where the currency exchange rate is controlled by the government and which has kept a tight leash on the RMB, despite protests from other countries.

Fibre2fashion spoke exclusively to Mr Sahil Gandhi, Asst. Manager (International Marketing) at Rohit Surfactants Pvt. Ltd., Kanpur, who said that the feasible solution to this crisis is to deliver the best quality and designed products at competitive prices and generate the goodwill that the Indian market is much more reliable”.

When asked about the prospective clients in countries other than US and EU, Mr Gandhi said, “We believe that, European, US & South America markets are fully packed with a large number of sellers and now it's the time to concentrate more & more on Middle East countries”.

We than queried him about any rise in the order book position since the global markets seem to be recovering from recession, he said, “Yes, during recession, buyers buried their hands deep in to their pockets due to low demand, but now as the market has started recovering, we are expecting rise in demand and hope this financial year will end on a good note”.

Fibre2fashion News Desk - India

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