This had me laugh out. No offence meant. A textile company waiting for 67 INR to convert the forex holdings? What if it appreciates to 64? This may be an intelligent decision by forex desk at the company but not a wise decision in the larger interests of the company. What if such decision making percolates to other areas of business decisions?
I’m not invested in Kitex so take my opinion as that of an outsider’s.
Just to add my observation on company’s foray into branded wear in the US. I’m sorry, but branded companies whack their brains out to gain customer’s mindshare in US. Adidas tried, tried and tried but could not move an inch out of Nike’s market share. May be an extreme example here. Same piece of clothing sold by GAP but made by a Bangladeshi exporter will sell out easily compared to this Bangladeshi company coming out with its own proprietary brand. Brand building is exorbitantly costly affair. Less expensive means – very long gestation period to build customer loyalty.
Rather than this, company could have expended efforts in widening the current customer base, mining current customers, innovate in the product lines and more.
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