Prashant Atre: A strong dollar will hurt us more as we import more than export
As per a representation by a printer body, there’s a 25% hike in the cost of input materials. Since January 2018, the cost of US dollar has risen to Rs 68.
In conversation with Prashant Atre, director, Toyo Arets India, we find out what print desires under the rising dollar
23 Jun 2018 | By Noel D'Cunha
You represent a business, which is dependent on crude oil volatility and the currency price fluctuation. Will the dynamics be altered in the short-term?
Indian rupee’s deprecation against Euro is a major factor for us not the USD. We have very less exposure in USD. Apart from weaker a rupee, our main concern is increase in raw material prices, which is clubbed with the shortage of raw materials. The problem is compounded with re-classification of two major photo-initiators (PI), which will come in effect by September 2018; substitutes of these PI will prove to be even more expensive for UV inks.
Do you think your company (and the industry) absorbs this price increase?
We have tried our best to give minimum impact to our customers, all the time, but this time the impact is so high that we had to share this price increase burden with our customers.
Will this 25% industry-wide raw material inflation temper your company’s outlook for this year? What is the percentage you are looking at?
Our company’s Indian outlook in terms of revenue will hopefully remain the same for the calendar year 2018, but it will surely be not the case with the profitability.
From an export point of view, a strong dollar will boost turnover. Your comments?
Trade is not a one-way transaction. On the face of it, a weaker rupee, looks good for exporters that's why we are seeing the IT industry and pharma sectors improving. But in case of printing industry, it will hurt more as we have more imports than exports in this sector.