Rupee depreciation will push up landing cost of the product: Sunil Srivasava

17th September 2013 | By Mouseworld Now Correspondent |

Sunil Srivastava India Sales & Marketing Manager at RAPOOWith the devaluation of the Indian rupee against the US dollar, there has been an upheveal in the entire Indian business world. IT industry being the face of business excellence in India has also been party to the fiscal commotion. To record the perspectives of the poster-boys of Indian IT on the vital issue, Mouseworld Now has started this series.

In this part, Mr.Sunil Srivasava, India Sales and Marketing Manager at RAPOO Technologies Limited has expressed his expert comments on the vital issue facing the IT industry because of the rupee devaluation in the international market. Here are the edited excerpts…

Yes, Rupee depreciation affects the price hike, due to this depreciation the landing cost of the product increases because distributor has to pay higher amount to get the same material. In the case of any imported product where payment terms are on credit, the material which has imported today, the distributor has to pay the money after sometime and he sell the material on today’s price which is lower (which means the Rupee value is high), but if by the time he make the payment the Rupee value depreciate which means, he will have to pay higher amount than his actual landing cost based on which he has sold the material. This happens in both the cases of stock and shipment.

Sales also affects on Rupee’s depreciation because buyer has to pay more money to get the material. As impact, he is forced to increase the selling price, or if brand wants to keep the same price either Brand or Buyer or both has to share in the loss gap. This sudden increase of price affects the sales, because channel and customer don’t accept it on immediate basis, their purchase shifts for some time and which results in sudden drop of sales which may stabilize after some time, if the price shows constant.


© Mouseworld Now News Service

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