Even if I get my components from Mumbai or Chennai there could be such a fluctuation since my freight component will increase. “I don’t see a reason to raise my blood pressure over this,” he said, adding, “As such, a 1 to 2 percent fluctuation keeps happening in businesses. Kedia says that while a drop of 1.5 rupees in the last two months sounds like a lot, in percentage terms it is only 2 to 3 percent and, while that pressures his margins for some months, he expects things to stabilise after that. It has already tested a record low of 80.0575 twice this week, recovering when the Reserve Bank of India stepped in to support it. The rupee has fallen rapidly to 79.97 a dollar – from 77.64 at the end of May and 74.55 on February 23, a day before Russia invaded Ukraine. “Unless it falls to 85-a-dollar levels… then we will be in trouble,” he says. Kedia says if the rupee falls further in the coming days, he may have to compromise on profit margins for a few months, but the long-term impact on his business will be negligible. Raw material prices have normalised, and a similar depreciation in the currencies of his trade partner China have helped offset the hit to his business from the rupee’s fall. A surge in the cost of imported raw materials – metals and plastic – and a plummeting rupee slashed its profit margins drastically.īut when asked if there is a panic now that the rupee stands at the threshold of 80 to a dollar, and may soon fall further, Managing Director Neeraj Kedia says he isn’t losing sleep over it. Mumbai, India – Chakradhar Chemicals, a medium-sized company that manufactures micronutrient and soluble fertilisers and farm equipment, has braved a lot so far this year.
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