Bangalore, Aug. 24 With the European economy improving, apparel exporters in India say enquiries from Europe are picking up.
This comes at a time when exporters are reducing their dependence on the volatile US market.
“The feel-good factor in Europe is better than in the US. While earlier there was a lull in business, today buyers are listening and are open to discussions.
“The improved enquiries are particularly from France, Germany, Italy and Belgium,” says Mr V. Thiagaraj, Executive Director, Sona Valliappa Textiles.
India’s apparel exports fell 15 per cent to $2.41 billion in the first quarter of this financial year.
But things have begun to improve slightly and exporters are hoping to catch up in the coming quarters.
Says Mr Rajendra Hinduja, Managing Director, Gokaldas Exports, “Pre-recession, every quarter we used to make around Rs 275 crore. But there had been a dip of 10-15 per cent in business due to the economic slowdown.
“But for the last three-four weeks, we have been seeing an improvement. The order book has improved. We hope to make Rs 275 crore this quarter.” Reducing dependence on the dollar has been an ongoing agenda for apparel exporters.
“Apart from getting lot of enquiries from Europe, Tirupur exporters are also trying to export to South America and Australia,” says Mr S. Sakthivel, Executive Secretary, Tirupur Exporters’ Association.
“But whether buyers will accept our prices, we will know in 10-15 days.”
While enquiries are no doubt improving, exporters in India have a big job on hand to convert interest into orders.
Manufacturing practices
They have to be cost effective vis-À-vis competition from China and Bangladesh, whose prices are 15-20 per cent lower than Indian rates.
While the industry still looks to the Government for sops (the Exim Policy is something exporters are eagerly awaiting), some exporters have realised lean manufacturing practices are key for reducing costs and staying competitive in the market.
“We have started managing time and reducing input costs. We don’t hold excess stock and instead buy exact quantities,” says Mr Valliappa.
Source : Business Line