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Home > Discover Hyderabad > CONSISTENT GROWTH IN EXPORTS


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CONSISTENT GROWTH IN EXPORTS

Exporting bulk drugs in large proportionsHyderabad might have catapulted into the top tier of cities in the export of software services, but its share in the export of goods is just a fraction -1.25 percent of the country's total volume. Of the 1,62,700 exporters in the country, only about 2,000 have a presence in the twin cities of Hyderabad and Secunderabad. But here is the good news. Exports from the city are showing a steady growth.

The Hyderabad market exported a volume of 7,330 MT during the first 10 months of 2001-02, while the imports stood lower at 2,374 MT, making the city a net exporter. This, despite the global slowdown and lull after the Sept 11 attacks on the US.

Steady growth in exportsThe cargo operators in the twin cities have their hands full, moving over 1 lakh tons of cargo in and out of the country. The growing exports of various goods from the twin cities has also lured multinationals to establish their presence here. To cash in on the potential, major cargo companies have established their presence in the city. These include DHL worldwide, Panalpina, Emery Worldwide, Expediators, Union Transport, Exel and Geologistics, who are all vying for the market share. Domestic majors like Safe Express, Gati, Global Air Freight, Robinson, AFL Logistics and Far 'N' Par too are in the fray for a share of the action. Today, there are about 200 cargo operators in the twin cities, according to industry sources.

Leather goodsIn the first ten months of 2001-02, operators handled a total volume of about 1,32,041 MT cargo to and from the twin cities, according to the available data. The uptrend in exports is mainly due to rise in the export of bulk drugs and formulations, gems and jewellery, leather garments and ready made garments. Exports of goods have shown a steady increase during the last five years, whereas the rate of imports growth has slowed down, the data shows.

Typically, the cargo operators charge about Rs120-180 per kg of goods destined for the US by air. Whereas, the rates for the ocean cargo vary from company and destinations. For example, a 20 feet container would fetch $ 2,300 for shipment to the US. One can load upto 18 tonnes of goods in a container at that price, but the time taken would-be proportionately longer. Bulk drugs and formulations constitute about 85 percent of the exports from the twin cities, according to the AP State Trading Corporation. According to the data, the export of bulk drugs and formulations from the state was about Rs 1,751 crore during the first 10 months of 2000-01, up from Rs 1,251 crore recorded in the same period of the previous year. Dr Reddy's Labs, Aurobindo Pharma and Natco Labs are the leading bulk drug exporters from the city with a share of above 65 percent of the total volume of bulk drugs. Exports from Hyderabad also include granite, leather garments and pickles.

Government institutions form a major group of importers in the twin cities. Public sector units like Bharat Heavy Electricals Ltd, Electronic Corporation of India, National Remote Sensing Agency and the Centre for Cellular and Molecular Biology (CCMB) figure among the top 10 importers in the state. Significantly, even today engineering goods and electronic components form a major component of imports.

The air cargo is handled by four major airlines: Air India, Emirates Airmines, Malaysian Airlines and Indian Airlines. In addition to the direct international flights to Hyderabad, about 45 percent of the international cargo (import and export) comes to the city via Mumbai and Chennai ports. The Hyderabad customs department, which is losing revenue due to this, is planning to introduce innovative schemes to ensure that this volume gets registered under its jurisdiction. The plan involved is in tying up with truck operators to carry goods to and from sea port cities to Hyderabad.

The Top Ten Importers of Hyderabad:

State Bank of India, Corporation Bank, Indian Overseas Bank, MMTC Ltd, The Bank of Novo Scotia, Electronic Corporation of India Ltd, Ushodaya Enterprises Ltd, ARM Ltd, AP INDL Components Ltd and Lampex Electronics Pvt Ltd.

The Top Ten Exporters of Hyderabad:

Dr Reddy Laboratories, Aurobindo Pharma Ltd, Hansa Overseas, South India Prime Tannery Pvt Ltd, Sri Krishna Jewellers, Musaddi Lal & Sons, GTN Textile Ltd, Asra Enterprises, Al Kabeer and Jay Engineering Works.

The Top Five Imported Items:

Gold and Silver, Equipment, Inorganic Chemicals, Machinery and Mechanical Appliances, Medical Equipment and other Instruments.

The Top Five Exported Items:

Bulk Drugs & Pharmaceuticals, Leather Garments, Gems & Jewellery, Readymade Garments, Perishables like Vegetables, Fruits, Eggs and Meat.

- MAR Fareed
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