Moradabad: Some workers have gone to offer their Friday namaz; others have stepped out for lunch. A few are sleeping on the floor. But looks can be deceptive. These are extremely busy days at C L Gupta Exports Ltd, a sprawling factory on NH-24 that makes and exports giftware worldwide.
“Since January 2012, our workforce has grown from 1,600 to 1,850. By the end of September, we will add another 150 workers. We are targeting a 20% growth in business,” says Raghav Gupta, the company’s managing director. Fellow exporter Mohammed Mansoor is equally buoyant. “We are on a good wicket right now,” he says. That’s not all. Over a dozen exporters from this western Uttar Pradesh town are currently in Frankfurt attending a trade fair and shopping for customers.
One man’s poison is another man’s meat, goes an old saying. At a time when many industries are agonizing over the fall in rupee, the same reason is cause for cheer in Moradabad. That’s because a cheaper rupee translates into higher profit margins and increased business for most exporters. “About 70% of our market is abroad,” estimates Satpal, general secretary, Moradabad Handicrafts Exporters Association (MHEA).
But the optimism of exporters doesn’t really spring from the currency’s recent free-fall from Rs 55.52 (May 22) to Rs 66.19 (Aug 26) per dollar. Deals for many exports for the forthcoming Christmas and New Year’s market, they say, were signed around May or earlier for Rs 50 or a little more. The bigger reason is that for over a year and half the rupee has gradually depreciated against major international currencies such as dollar, pound and euro, which has helped growth in export-oriented businesses. Most exporters also admit that both volumes and profits will further grow in the coming months when fresh bookings are made for next year’s Easter season.
Nonetheless, Gupta also points out that profits can never be too high because Indian exporters don’t control the trade. “We operate in a buyer’s market because there’s stiff internal competition amongexporters. China too is a rival. Buyers have plenty of options. For fresh orders, I am sure, they will ask for discounts,” he says. Mansoor cautions, “We must not forget the macro factors. We import a lot of our material such as copper, glass, paints, which are becoming costlier. That apart the prices of diesel, gas and electricity have soared, even shipping is becoming more expensive. Besides, a currency’s volatility is never good for business.”
There are about 600 exporters in Moradabad, says Satpal. Of them, 285 are MHEA members. A total of four lakh workers earn their livelihood making candle stands, flower vases, table top items, shoe racks, umbrella stands and decorative figurines in their factories as well as 3,000 ancillary units.
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“Since January 2012, our workforce has grown from 1,600 to 1,850. By the end of September, we will add another 150 workers. We are targeting a 20% growth in business,” says Raghav Gupta, the company’s managing director. Fellow exporter Mohammed Mansoor is equally buoyant. “We are on a good wicket right now,” he says. That’s not all. Over a dozen exporters from this western Uttar Pradesh town are currently in Frankfurt attending a trade fair and shopping for customers.
One man’s poison is another man’s meat, goes an old saying. At a time when many industries are agonizing over the fall in rupee, the same reason is cause for cheer in Moradabad. That’s because a cheaper rupee translates into higher profit margins and increased business for most exporters. “About 70% of our market is abroad,” estimates Satpal, general secretary, Moradabad Handicrafts Exporters Association (MHEA).
But the optimism of exporters doesn’t really spring from the currency’s recent free-fall from Rs 55.52 (May 22) to Rs 66.19 (Aug 26) per dollar. Deals for many exports for the forthcoming Christmas and New Year’s market, they say, were signed around May or earlier for Rs 50 or a little more. The bigger reason is that for over a year and half the rupee has gradually depreciated against major international currencies such as dollar, pound and euro, which has helped growth in export-oriented businesses. Most exporters also admit that both volumes and profits will further grow in the coming months when fresh bookings are made for next year’s Easter season.
Nonetheless, Gupta also points out that profits can never be too high because Indian exporters don’t control the trade. “We operate in a buyer’s market because there’s stiff internal competition amongexporters. China too is a rival. Buyers have plenty of options. For fresh orders, I am sure, they will ask for discounts,” he says. Mansoor cautions, “We must not forget the macro factors. We import a lot of our material such as copper, glass, paints, which are becoming costlier. That apart the prices of diesel, gas and electricity have soared, even shipping is becoming more expensive. Besides, a currency’s volatility is never good for business.”
There are about 600 exporters in Moradabad, says Satpal. Of them, 285 are MHEA members. A total of four lakh workers earn their livelihood making candle stands, flower vases, table top items, shoe racks, umbrella stands and decorative figurines in their factories as well as 3,000 ancillary units.
for more informatin about :apparel manufacturers,garment manufacturers,apparel exporter,apparel buyer directory and buyer directory
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