Sliding rupee benefits Indian leather companies

While the Indian economy is worried over the downfall of the rupee against the dollar and other foreign currencies, leather industry players, supplying ready-made garments to the likes of Armani, Hugo Boss, Guess or Abercrombie & Fitch are making huge profits. The entire cluster is in a jubilant mood with their order fetching about 20 per cent profit over the original deal value.
When the orders were signed the rupee’s value against the dollar was somewhere around 58 and today it has reached over Rs 68 to a dollar bringing tremendous difference to profit margins. And the situation is like adding a cherry on the cake since economic recession in the western countries and drop in orders from the European region last year had had a negative impact. 

On the other hand, domestic retailers, who stock imported products at their stores are cutting down on them or replacing the same with locally produced goods. Even foreign brands waiting to enter the country have put their plans on hold owing to the slow economy and sliding rupee.