A STUDY ON CURRENCY HEDGING STRATEGIES IN EXPORT COMPANIES WITH REFERENCE TO KIREETI GROUP, HYDERABAD

Abstract

Currency fluctuations create significant financial risk for export-oriented companies because changes in exchange rates can affect export revenues, profitability, cash flows, pricing, and competitiveness. This study examines currency hedging strategies used by Kireeti Group, Hyderabad, to manage foreign exchange risk. It evaluates the use and effectiveness of forward contracts, options, futures, swaps, and other hedging approaches. The study also examines factors influencing hedging decisions, major challenges, and the contribution of treasury management to financial stability. Primary data were collected from 100 respondents through a structured questionnaire. The findings indicate that forward contracts are most preferred and existing hedging strategies are generally effective. Keywords: Currency Hedging, Foreign Exchange Risk, Export Companies, Forward Contracts, Kireeti Group