In a report published in Economic times, Chand Anand, president of All India Exporters Guild said, "The move has paid dividends by around 8-10 percent in the last quarter." He said that the garment export of Gurgaon was severely hit by the slowdown in European Union (a union of 27 European countries) and the US.
Rishi Arora, director of Gourav International, a Gurgaon-based garment exporter and manufacturer said, "These new markets are temporary, as our traditional clientele in the nations have completely different taste as compared to these. These countries in Latin America and Eurasia are more interested in quantity than quality. “
Therefore, we are forced to produce more if we want to match the volume of the revenue that we were generating from the EU and US. With the limited workforce, we have, we are unable to produce the volume of product in similar period of time. This extra production is the reason, why we have not been able to cope up with the slowdown completely with these new markets," added Arora.
Sham Sunder Verma, vice president of Udyog Vihar Chamber of Industries said, "If we talk about the profitability margin, it is in the range of 10-12 percent while trading with the EU and US clients, the profitability falls below 10 percent."
"Among the new markets, Israel is the only which matches the kind of products that Gurgaon-based garment exporters have been sending to EU and the US. But, the volume of business in Israel is very low,” added Verma.