Gokaldas Exports Increases Domestic Business

For the first and second quarter of this year, Gokaldas

Exports has comfortably crossed Rs 500 crores. However, the prospects for financial year 2011 don’t look too bright. Gokaldas hopes to achieve the topline but price pressure still continues. Rajendra Hinduja, Managing Director of Gokaldas Exports is of the opinion that the US consumer is still sluggish and is not buying as much as it was buying earlier. Unemployment figures are hovering around 10 per cent so buying has not yet caught up. Even though things are moving in a positive direction for the company, it’s still not like old times.

 

Hinduja also says their new contracts have been badly affected due to currency fluctuations and yarn prices. In fact, these two factors have become a big negative for the Indian apparel industry. Gokuldas Exports is working hard to start concluding new contracts. Hinduja explains the 12 per cent euro dip in eight weeks is very difficult for the export industry to take. The level of dollar-rupee at 44:50 is also tough to negotiate and achieve new contracts because Indian prices are nearly 7 to 8 per cent more in terms of the dollar. Due to this, Indian exporters are losing out to countries like Bangladesh and Vietnam.

However, Gokaldas achieved more then 12-13 per cent turnover in the domestic market. Earlier they hardly had 1-2 per cent turnover within India. The company intends to push it up it to 20-25 per cent so that they can get relief from the currency fluctuations.