Re rise hits Mirza Int'ls exports

The rise of the rupee against the dollar has eroded Mirza International's export market.

The company has paid 25 per cent dividend, as it did last year, because "huge investments will be required for the current and future expansion", according Irshad Mirza, chairman.

And the company, unlike others, is not expanding in Uttarakhand.

Mirza was addressing shareholders on the occasion of the 28th annual general meeting of the company at the Merchants Chamber Hall in the city recently.

But talking to Business Standard on the sidelines of the meeting, he blamed the government for the current mess and said "we ought to learn from China". There the government took the burden of the appreciation, he added.

Mirza said the company would take a hit of about 10 per cent in export growth.

"Both exports and the turnover have risen this year. But the contracts we are going to book in October will be fewer and the impact will come in the next financial year," Mirza said.

"Another problem is that though the government had promised to give us a drawback rate of 10 per cent, when the time for payment came, the rupee appreciated and we are being paid at the current rate rather than the rate at the time of the announcement," Mirza added.

The company's turnover has increased from Rs 235 crore in 2005-06 to Rs 306.55 crore in 2006-07, thus crossing the Rs 300 crore-mark for the first time, while its profit before tax increased to Rs 28.59 crore from Rs 18.64 crore.

The number of its retail shops has increased to 40 and the plan is to increase it to at least 60 in this financial year.