Ashish Pradhan: Currency fluctuation has impacted us by 6%
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 Ashish Pradhan, director, Siegwerk 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?
Almost 50% of our business is import dependent and the currency fluctuation since January (both Euro and USD) has impacted us by almost 6%. Due to a high degree of global uncertainty (Iran sanctions, trade disputes between the US and other countries), volatility definitely remains high.
Do you think your company (and the industry) absorb this price increase?
Siegwerk has tried to absorb as much of the impact as possible but we have had to approach our customers for support on price increases. Our customers have been understanding and we are managing this input cost increase with mutual agreement.
Will this 25% industry-wide raw material inflation temper your company’s outlook for this year? What is the percentage you are looking at?
We do not see a 25% inflation in the prices but the increased pricing is definitely putting a lot of pressure on our margins.
From an export point of view, a strong dollar will boost turnover. Your comments?
Yes, but to the extent of our export turnover only. On the other hand, a strong dollar impacts us in terms of raw material cost, as a majority of our raw materials are imported.