The Hindu Business Line : Textile exports may be hit on dull US market

Coimbatore, Sept. 25 With the overall market for textiles in the US having slowed down, it may leave its impact on India’s home textile exports this year.

Price pressure

The impact would be widely felt this time around when most exporters are facing price pressures due to soaring rupee, according to Mr Pradeep Mukherjee, President (Global Sales and Marketing) of Bangalore-based Himatsingka Linens, the Greenfield home textile division of Himatsingka Seide.

Exporters in such a scenario could afford to lose some thing in the exchange risk if only they had built up product/business mix rightly, Mr Mukherjee added.

Impact

Responding to Business Line’s query on the impact of surging rupee on textile exports, he conceded that unlike his parent company, which exports high-valued fashion silk fabrics, yarns/its blends and hence could relatively stay clear of the value erosion, the home textiles would take hit because these products remained highly price sensitive. With rupee falling below 40, the exporters’ bottomline suffered a seven per cent erosion.

Value chain

Himatsingka’s cotton bed linen division, just into trial run production and expected to start commercial production by the middle of next month, is also preparing grounds to go up value chain.

“We have to employ better yarn to up the product aimed at getting the right buyer who will give higher rates,” said Mr Mukherjee who also expected a pro active government initiative that facilitates improved infrastructure like quick port clearances of export consignment.

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