Apparel exporters see orders jump 20%

Apparel exporters in India have received 20 per cent more orders for next year. But, they will have to contend with a 15-20 per cent drop in prices over the current year.

In spite of this, exporters are optimistic as raw material prices are down 5-8 per cent from last year. Also, the new Cenvat model has resulted in costs going down by another 5 per cent.

While individual order volumes have remained the same, the number of orders has shot up by around 20 per cent.

A spokesperson for Tirupur-based Eastman Exports said this was in line with exporters' expectations and this was precisely why firms had feverishly expanded capacity in the last two years.

"Cost cuts could not have come at a better time. Instead of taking a 20 per cent cut in margins, we are now losing about 10 per cent. This is manageable, thanks to the flurry of orders," a senior Apparel Export Promotion Council official and a Tirupur-based exporter said.