NEW DELHI, February 6: Be it rugs, durries, cushion covers, scarves and the likes or just plain fabric--there is lots of money to be made if you can build a demand for your product overseas. Thousands of entrepreneurs throughout India have realised this potential and are making money by exporting these products to various markets in Europe, the US and Japan. Competition, both domestic and global, is on the rise. But there is no need for despair as demand is also growing. Moreover, there are various emerging markets too, just waiting to be tapped.
Taruna Singhi of Taurus Exports supplies cotton, silk and jute made-ups to several European countries and the US. "It is not just the product, but the design ideas that sell," says Singhi. A proper knowledge of the trends, the colours and the styles in vogue in the various markets is very important, feels Singhi. "There has to be a coordination between all these to make designs which will be eagerly accepted."
According to Singhi, to match steps with thechanging world demand travelling is a must. "I have to visit different countries regularly as it is only through one-to-one correspondence that the actual requirements can be made out." Foreign designers are also invited by her to visit India from time to time. "All this is necessary for a proper blend of the East with the West."
Manish Goel of Vashu and Company, a unit in Mumbai, which manufactures and exports both fabrics and finished products agrees that exposure to foreign buyers is a must. "Participating in exhibitions and fairs is the ideal way to gain exposure," says Goel. According to him, most of the exhibitions are serious affairs with lots of interested buyers visiting it. "Last week, I participated in a fair in Germany and I received good response."
Goel, who deals in jute and cotton blends, says that in the four years, he has been doing business, his turnover has grown by 40 per cent. "If the product supplied is of a good quality then demand has to rise."
Agra Dhurrie Bhandar Exports, a rugand carpet manufacturing unit in Agra, has been in operation since the last 25 years. Arvind Maheshwari, owner of the unit, says that over the years there has been a massive increase in the demand for his products. "We produce durries and carpets made of jute, cotton and wool and there is a rising demand for these."
Maheshwari says that with rising ecological awareness throughout the world there has been an increased preference shown towards eco-friendly materials like jute. "There has been a marked increase in the demand for jute products which has worked as an advantage for us."
Maheshwari is also careful about the dyes which are used. "We mostly use vegetable dyes and completely keep away from Azo dyes." Singhi also does her bit for conservation of ecology. "All my products are made out of natural fibres. As a matter of principle I do not use man-made fibres."
The Indian exporters face stiff competition mainly from China, Taiwan and Indonesia. The main problem is the remarkably low prices at whichthe Chinese sell their products. "It is very difficult to match their prices as it would result in losses for us," says Singhi.
However, there are numerous other ways in which the Indian exporters are scoring over their foreign counterparts. According to Singhi, Indian designs are one thing which the Chinese cannot duplicate. "There is such a lot that goes into our designs that in this field we cannot be beaten."
Talking about her own unit, Singhi says that she purchases yarn and goes to different looms all over the country to get the right texture and design that she wants. "Be it Surat, Mumbai or Coimbatore, I visit any place where I know I will get good work done." Singhi feels that adaptability is another area where the Indian exporters are ahead of their competitors. "We are a flexible lot and can easily incorporate the needs of our buyers."
Vibha Saxena, designer in Uptodate Impex, a handloom product exporting unit in Delhi, agrees with Singhi that Indians are very accommodative. "Though we preferto work on our own designs we never refuse any design that our buyers want us to make." Even when products are made according to the company's design, samples are sent to the buyers and most of the changes that are suggested are brought about. "Other countries do not give as much space to the buyers as we do."
Then there is also the difference in the kind and quality of material. Prakash Sethia of Vishal Exports, a unit in Surat which deals in 100 per cent polyester fabric, says that though Indonesia is trying hard to woo international buyers with its polyester garments it can never compete with Indian polyester. "The kind of georgette blended polyester we can make the Indonesians cannot."
However, Sethia feels that Indians cannot market their products very well. "The competing countries certainly have this advantage over Indians." But, Sethia claims that he has not left any stone unturned in his marketing efforts. Manufacturing scarves, stoles, parios and sarees, Sethia says that he makes extensivemarketing efforts both within the country and outside. "I have so much confidence in my marketing skills that I believe that I can even sell a refrigerator in the Himalayas."
Rajesh Kumar of S R Kumar Inc. also feels that one of the reasons which keeps the demand for Indian products stable in the world market despite the low prices offered by China, is the material used. Exporting cotton mats and rugs mainly to Japan, Kumar says that the quality of cotton used by Indians is what makes the difference. "Our cotton is coarser than what is used in China and for mats and rugs, coarse cotton is certainly a better material."
According to Kumar, initial investment required in the business is not much. "One can start off with a few lakh rupees." However, to grow in the line certain expenditures have to be made. Says Singhi, "It is very important to travel abroad frequently to stay in touch with the buyers. An exporter cannot afford to cut on costs here." Goel agrees. "To expose one's goods to foreign buyers, it isvital to participate in foreign exhibitions, at whatever cost it may be."
Though Europe, Japan and the US are good markets, Indian exporters are looking for fresh vistas to further expand their business. For Manish Goel of Vashu and Company, who is exporting to the US and Europe, it is South America which looks promising for expansion. "I have identified several countries in South America and will start exporting there as soon as I finish the initial talks."
Arvind Maheshwari puts his bet on South Africa. "It is a growing market as many Indian entrepreneurs doing business in other spheres have discovered. The market is ripe for textiles and allied products too. I am seriously thinking of visiting the country and tapping interested buyers there."
The future is bright, agree the exporters unanimously but they feel that growth should not be taken for granted and efforts should be made to sustain and increase the demand. Goel says that the Indian exporters should try and fight the price war waged by theChinese. "Instead of pleading helplessness we should learn to adopt cost-effective techniques to match China's prices."
According to Singhi, if the three most important things i.e. good quality, new designs and timely delivery are stuck too, then growth can be unbounded. "If we keep our promises made to the buyers then success will be ours."
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
