The US and Europe together account for over 65% of India’s garment exports and despite the hype of emerging markets, both these markets are still a priority for exporters. Many exporters who are catering to the European market are now exploring the US and achieving success, which has inspired them to expand capacities. One such company is 8 years old export house Platinum Overseas of Jaipur which has recently entered into the US market. Working with three wholesalers that are giving average orders to the company of 50,000 pieces, the first shipment to the US will be dispatched within a few months. Arun Gupta, enthusiastic Proprietor of the company informed, “Europe was our main market but now US is picking up and orders have started to come in strongly. We have started export of skirts to the US just three months ago. The average FOB of these skirts is US $ 6 to 10. Looking to the encouraging response from US buyers we are also going to expand our capacity with an additional 250 machines in a new unit of 20,000 sq. feet. Production at this new unit will commence in next three to four months.”
The company is investing US $ one million in this new unit and expecting 40% growth in this fiscal. Right now the company has 3 small units of total 200 machines and doing a turnover of US $ 3 million. Talking about the market, Arun insists that buyers are very sensitive to price, so he is working on giving the best price possible and at margins of 7 to 10% only.
