The
impact of the rising rupee is serious on exports. A garment export hub, is losing
as much as Rs2 crore a day reports CNBC-TV18. >"This
factory has 400 machines. I''ve made provisions for 500. As a matter of fact, I
have already placed the orders for the machines. But with the sentiments turning
completely negative, I''ve put this on hold because I don''t want to add more machines
when I don''t know whether, in couple of months I will be able to feed the lines
I have," says Udani, Last year Tirupur did business of Rs11,000 crore. Now
it''s losing Rs2 crore each day. That''s because of rise of the rupee has compounded
the profitability woes to the wafer-thin margins in a post-quota world. Exporters
say this leaves them little room to improve efficiency. "This blow
has been like a tsunami to us. At least if there was a warning, we could have
prepared for it, But now even without a warning, this blow has happened,"
says R Shanmugam , managing director, Classic Polo. Some exporters are
trying to move up the value chain by experimenting with organic cotton and embroidered
garments It''s been a long hot summer of discontent here in Tirupur with
the ever-rising rupee. But hopefully, the first showers of the season have brought
with them the realisation that if garment units such as
this one want to survive into the next decade, they will have to re-invent themselves,
possibly by producing more value-added products. But that might not be
easy in an industry that has become so commoditised. Now the exporters hope the
RBI will rescue them.
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