| Most of textile manufacturers have resorted to the forward covers on the dollar to offset the sagging rupee. |
| Ludhiana-based Supreme Yarns Ltd stabilised its operations in the wake of uncertainty on the exchange rate front. Rajeev Bhambri, vice-president (finance) of Supreme Yarns, said: "The revision of duty drawback rates and export credit benefit helped the industry to tide over losses to some extent". |
| Nonetheless, the industry has sought hedge funds to counter any appreciation in the next six months, Bhambri said. |
| He added that the company was presently exporting yarns but plans to add garment exports by March 2008. He mentioned that the measures like a cap on ECB (external commercial borrowings) is likely to correct the rupee value. If it does not, it would effect their garment exports. |
| He said that the company revised the prices of certain products for the specific markets taking into consideration the elasticity of demand. Supreme Yarns exports mainly to Korea, Italy and Bangladesh. |
| Neeraj Saluja of Saluja Manufacturing Company Ltd is more confident than his counterparts on exports earnings as his major garment export destination is Russia. |
| Appreciation of rouble from 29 rouble per dollar to 25 rouble per dollar in the past few weeks was a saving grace for his business. |
| He endorsed the use of forward cover on dollar for his yarn business and for advance orders of garment business. Dinesh Oswal of Nahar Export is looking at internal cost cuttings like power saving, transport costs and high labour productivity but admitted that hedging was indispensable for the exporters. |
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