Company: PETER SCANLAN WOOLS
State: WESTERN AUSTRALIA
PETER SCANLAN WOOLS AND INDIA
Peter Scanlan Wools, a small West Australian wool trader and exporter, have exported wool to India since establishing their business in the mid-1980s. By 2001, India accounted for about 20 per cent of their sales. Their wool exports to India are through two long established agents who are closely linked to several wool textile mills. Peter Scanlan Wools emphasises the importance of these agents; through time the company has changed their representatives several times after re-assessing their performance and trustworthiness.
The extremely price sensitive Indian market features keen and persistent negotiators. Peter Scanlan Wools advises extreme care in negotiating and writing contracts given the risk of contract reneging and lack of legal recourse; letters of credit in particular need to be carefully monitored and checked for discrepancies. The company also found Australian financial institutions reluctant to honour letters of credit from Indian banks. However, careful choice and monitoring of agents will largely offset these potential concerns and Peter Scanlan Wools believes the Indian wool trade holds good future opportunities.
Source: Peter Scanlan Wools, 2001.