Tag: Mr. Leo Shastri

Business World

Indian handicraft industry upbeat about exports in the last quarter of 2020

Nov 19, 2020 by Gouri Achary 0 Comments #Mr. Leo Shastri, #Usha Exim Pvt Ltd

Having borne the brunt of COVID-hit markets and disruption in manufacturing and supply chains, India’s handicraft sector is now upbeat about the revival of export demand in the last quarter of the year.

Free trade export group, Usha Exim Pvt Ltd, is hopeful for a resurgence in exports for the Indian handicraft sector as the onset of the festive season is likely to infuse greater demand in the global markets which are also now better accustomed to the ‘new normal’ practices of COVID-19 pandemic.

Mr Leo Shastri, Director of Usha Exim Pvt Ltd says the handicraft market is already showing signs of revival after suffering disruption for several months due to the Covid 19 lockdown and subsequent migration of artisans and weavers. He foresees a significant jump in exports in the second half of 2020 like it happened in the previous year. Notably, the Indian handicraft export was expected to cross Rs 24,000 crore mark by FY 2020-21, but the long COVID induced disruption has put a question mark over this possibility.

“Handicrafts are unique expressions and represent a culture, tradition and heritage of a country. The Handicraft Industry is one of the most important sectors that provides livelihood to millions of people. This year, for various suppliers across India, the demand had come to a standstill forcing many shutdowns and bankruptcies. However, thankfully things are getting better now and hopefully, we will all learn from the mistakes we have made. Compared to the first quarter, we have had an increase of approximately 20% and 35% in the second and third quarters respectively. And, that’s why we strongly expect that Indian handicraft export will pick up in the last quarter of 2020,” said Mr. Leo Shastri.

Usha Exim Pvt Ltd, a fair trade export company of multiple products, produces a wide range of high fashion fair trade jewellery. Besides jewellery, their other high selling points are bags, belts, scarves, home furnishing and garments. Their 95 per cent revenue is generated from exporting their products in countries like US, Germany & Australia. And, the rest 5% is domestic sales.

Overseas demand has picked up from last month but as most of the countries have initiated measures to tackle Covid-19, it is still subdued.

“Aggressive demand is not there and the prices have dropped in the US and Europe markets. The quantities have dropped along with the prices affecting the entire supply chain from production to logistics to end-retail. However, as we head towards Christmas, we are expecting that the festive season will infuse greater demand in the market,” Mr Leo added.

Official data of Indian handicraft exports for 2020-21 is yet to be announced but the industry reckons that it could fall short of targeted over Rs 24,000 crore mark as the exports were hit by Covid pandemic. The US is currently the largest buyer of Indian handicrafts followed by the UK and other European countries.

Business World

Improving Exports in Covid-19 era: Things to keep in mind Mr. Leo Shastri, Director – Operations & Strategy, Usha Exim Private Limited

Sep 30, 2020 by Gouri Achary 0 Comments #Mr. Leo Shastri, #Usha Exim Private Limited

No doubt the coronavirus pandemic is an unforeseen and unprecedented situation that has turned everything upside down. And like every major disruption, it is majorly pushing the boundaries of reliance. Exporting is a vital source of economic growth for a country and small and medium enterprises account for a substantial amount of Indian exports. As the economy is slowly and steadily opening up despite the COVID-19 pandemic scare, export companies need to start evaluating the whole scenario so that their products and services overseas grow faster and do better. Exporting in the COVID-19 era is not as difficult as you might think and there are many methods to improve and increase a business level of export sales.

It’s only the unknown that’s challenging, but you just have to go for it and do it. In any economy, new geographic markets offer businesses opportunities to create new revenue streams – and studies reveal businesses that export are more productive and employ more people. Expanding into international markets can seem daunting at this point of time so here’s a “how-to” which contains various tips and advice for reducing the risk and increasing the export opportunities.

How to improve export sales

1) Make exporting a part of your overall business strategy.

Research is the key and our export strategy should be based on an assessment of your own position and research into promising opportunities. Forget the losses and start afresh. This time we will need to think long term about how to reach new customers and finance your exports, as well as making sure you understand legal and tax issues.

2) Carefully assess each of the markets you are considering entering into.

Expanding into new markets involves a great deal of market research in addition to target customers. When going into international markets, businesses need to be aware of different cultures. Clearly defining your market may seem like a simple step, but before you identify who you want to sell your product to you must understand their needs. You have to consider:

Demographics
Location
Common interests or needs of your target customers.
Market growth rates
Forecasted demand
Competitors
Potential barriers to entry.

3) Visiting the country is a must when desk research is over

Be prepared to travel to know the scenario of the country in the post-COVID era. Working with affiliates, partners, distributors, licensees or agents can help you get established in a new market. A great way to develop export sales overseas is to find partners by being there, in the marketplace and at a trade fair.

Talk to people buying similar products
Go and buy a similar product yourself
Go to trade fairs and seminars and talk to potential customers.
Learn local customs.
Overcoming issues such as cultural differences, language and health and safety regulations, levels of formality & business etiquette can help deliver vast improvement to your export sales.

4) Communicate with relevant shareholders

Clear, transparent and timely communications are necessary when creating a platform to reshape the business and to secure ongoing support from customers, employees, suppliers, creditors, investors and regulatory authorities.

5) Maximize the use of government support policies

There have been a plethora of policies that have been announced by the governments in their respective countries. In China, central and local governments have released several financial, social insurance and tax-related policies to support companies. This includes the China Securities Regulatory Commission’s (CSRC) interim policy on listed companies refinancing. Recently the US, UK and many other developed nations have announced amendments to tax and financing policies.