Dicitex Furnishings Grows Despite Currency Uncertainty
May 20, 2008
MUMBAI, India — In spite of concern about the depreciating U.S. dollar, Dicitex Furnishings is planning to launch new product categories and is building a new factory with eight additional looms in response to the market demand for its velvet jacquards.
"Our major business growth continues to be in velvets, and my prediction in 2006 that a velvet preference for contract and hospitality markets would only increase has proven correct," said Rajnish Arora, vice chairman of Dicitex Furnishings.
With a constant yearly growth, the company has started to expand into new product categories and is almost ready to present its transportation fabrics to the domestic market. Plans to introduce outdoor fabrics to the American market are also underway. While Dicitex Furnishings is doing well, the U.S. dollar's depreciation against the euro is worrisome and uncertainties remain.
"Few European customers ask us to quote in the U.S. dollar and we sometimes wish our American customers [would] pay in the euro," Arora said. The cost of energy and raw materials are going up as the dollar depreciates and seeking a price increase is often the only way to find balance. Most of Dicitex Furnishings' customers have accepted the reasonable price increase. Recently the U.S. dollar to Indian Rupee exchange rate has been steady.
"Fortunately, the domestic market is doing well and we have a good market share," Arora said. "This compensates to a good extent to maintain reasonable profit margins."
Dicitex Furnishings management's priority is how to increase the overall efficiency that will enable them to remain price competitive. "We are merging few member companies in to one entity and streamlining administration that will eventually reduce the cost of operations and further improve services to customers," said Arora. Buying a European-based company that facilitates a better entry to the eastern part of European markets and Russia is a top priority.
"Maintaining ready stocks in a select European country with local influence is one option we are seriously working upon," said Arora. During Evteks, the focus will be on launch of new bedding collection for the European market made of specially produced in-house yarn and appliqué cuts, floral design curtains and velvets.
"Our major business growth continues to be in velvets, and my prediction in 2006 that a velvet preference for contract and hospitality markets would only increase has proven correct," said Rajnish Arora, vice chairman of Dicitex Furnishings.
With a constant yearly growth, the company has started to expand into new product categories and is almost ready to present its transportation fabrics to the domestic market. Plans to introduce outdoor fabrics to the American market are also underway. While Dicitex Furnishings is doing well, the U.S. dollar's depreciation against the euro is worrisome and uncertainties remain.
"Few European customers ask us to quote in the U.S. dollar and we sometimes wish our American customers [would] pay in the euro," Arora said. The cost of energy and raw materials are going up as the dollar depreciates and seeking a price increase is often the only way to find balance. Most of Dicitex Furnishings' customers have accepted the reasonable price increase. Recently the U.S. dollar to Indian Rupee exchange rate has been steady.
"Fortunately, the domestic market is doing well and we have a good market share," Arora said. "This compensates to a good extent to maintain reasonable profit margins."
Dicitex Furnishings management's priority is how to increase the overall efficiency that will enable them to remain price competitive. "We are merging few member companies in to one entity and streamlining administration that will eventually reduce the cost of operations and further improve services to customers," said Arora. Buying a European-based company that facilitates a better entry to the eastern part of European markets and Russia is a top priority.
"Maintaining ready stocks in a select European country with local influence is one option we are seriously working upon," said Arora. During Evteks, the focus will be on launch of new bedding collection for the European market made of specially produced in-house yarn and appliqué cuts, floral design curtains and velvets.
