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INTRODUCTION
India accounts for approximately two percent of the world trade in leather and
leather products. To be on the fast track of growth and to have a larger cake in the
international business, continuous technology up gradation and modernization are the
most powerful driving forces like in any other manufacturing sector that dreams steady
growth and expansion. With this being the primary objective, India's Council for Leather
Exports (CLE) has taken a number of initiatives. To propel the combined efforts of the
tanning and manufacturing sectors, the Central Leather Research Institute (CLRI), the
Fashion Technology and Development Institute and CLE as the main cog in the wheel, an
action plan has been chalked out. The growing international demand apart, the action
plan also suggested measures to face Indian leather's industry's major competitors in
Asia: China, Indonesia, Korea and Taiwan.
To boost the country's leather industry, the Indian federal government has
earmarked a Rs 4.5 billion (US$ 95 mn) grant to be made available to the industry over a
span of five years but that's not without any string. The fund availability is conditional
upon the sector's attracting an annual investment of Rs 2.2 trillion. In 2002, investments
in the leather sector stood at Rs 410 million. Footwear and their components account for
about 25 percent of India's total leather products exports. These two markets also offer
Indian leather industry vast scope for exports of saddler and harness.
Besides the European market where Indian leather products already enjoy a strong
presence, the US too is emerging as a very strong and promising export destination for
Indian leather industry. US today accounts about 25 percent of a massive US$ 96 billion
global trade in leather and leather products. The importance of European market could be
gauged by the fact three major EU countries-Germany, Italy and UK- today accounts for
approximately 42-45 percent of leather and leather products exports from India. These
three countries together exported leather products worth US$ 814.82 mn in 2001-02
against country's total leather and leather products exports valued at US$ 1.93 bn. CLE is
trying to make a dent in new markets. Focus countries include the Latin American
countries, Israel and Japan. Japan is the fifth largest importer of leather & leather
products in the world. Japan now imports over US$15 million worth leather and leather
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products from India. In fact, between 1998-99 and 2001-02, India's exports leather
products to Japan have more than doubled. According to the latest available provisional
data, exports in the first 10 months in fiscal 2002-03 to Japan stood at US$ 7.53 mn
against US$ 7.30 mn during the comparable period of 2001-02. CLE aims at raising
India's share in Japan's total imports of leather and leather products to 2 percent by 2005-
06 from the current level of 0.5 percent which in other words means forex earnings to the
tune of US$ 70 mn in next three years from the 2001-02 level of over US$ 15 mn.
Italy is yet another favored export destination for Indian leather industry. Through
joint ventures with Indian companies, CLE has helped bring in Italian leather footwear
manufacturers to set up export production bases in India. In fiscal 2001-02 India exported
US$ 262.49 mn worth of leather and leather products against US$ 241.07 mn in 2000-01
to Italy. The global downturn however like other sectors had severely impacted leathers
exports by India. The first 10-month exports to Italy too showed a slow growth. Exports
during this period in fiscal 2002-03 stood at US$ 132.21 mn against US$ 151.90 mn
year-on-year basis. It is unlikely the year attained the US$ 2-billion-target set for fiscal
2002-03.
India is the second largest footwear producer in the world. It accounts for 20
percent of India's total export of leather and leather products. Major markets include the
UK, USA, Germany, Italy, France, Netherlands, Canada, Sweden and Russia. Of total
exports of footwear from India, around 64 percent goes to UK, USA and Germany.
India's new Export-Import policy for 2003-04 has among others gone in favour of
leather industry. CLE chairman S S Kumar maintains: "As far as leather & leather
products are concerned, the changes made in the EPCG Scheme in regard to criteria of
export obligation on the basis of duty saved, allowing import of 10 year old machinery,
and permitting import of spares for existing plant & machinery etc would make the
scheme more attractive and useful. Further, allowing the exporters to export any other
products in fulfillment of export obligation under the scheme is a major step forward and
would provide greater flexibility in a ailment of the scheme. The industry welcomes these
measures".
The lowering of value addition norms under the DFRC Scheme from 33% to
25%would benefit the exporters and the industry feels that extending the benefit of the
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scheme to deem export is a right step encouraging the domestic suppliers of raw materials
and inputs to the exporters. CLE is of the view that the duty free import entitlement
benefit extended as a premium to the status holders achieving higher growth rate of more
than 25% in FOB value of export in free foreign exchange, will encourage the status
holders towards attainment of the incremental performance. "The status holders would
now be able to achieve competitive levels of production by such duty free entitlement",
Kumar maintains adding "allowing annual Advance licensing facility to the status holders
will enable such units to go for planned procurement of raw material and components
based on annual production programme".
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LEATHER PRODUCT INDUSTRY
Apart from a significant foreign exchange earner, leather industry has tremendous
potential for employment generation. Direct and indirect employment of the industry is
around 2 million. The skilled and semi-skilled workers constitute nearly 50% of the total
work force. The estimated employment in different sectors of leather industry is as
follows:
The major production centres for leather and leather products are located at
Chennai, Ambur, Ranipet, Vaniyambadi, Trichi, Dindigul in Tamil Nadu, Calcutta in
West Bengal, Kanpur in Uttar Pradesh, Jalandhar in Punjab, Bangalore in Karnataka,
Delhi and Hyderabad in Andhra Pradesh.
There exists a large raw material base. This is on account of population of 194
million cattle, 70 million buffaloes, 95 million goats. According to the latest census, India
ranks first among the major livestock holding countries in the world. In respect of sheep
with 48 million sheeps, it claims the sixth position. These four species provide the basic
raw material for the leather industry.
The annual availability of 166 million pieces of hides and skins is the main
strength of the industry. This is expected to go up to 218 million pieces by the end of year
2000. Some of the goat/calf/sheep skins available in India are regarded as speciality
products commanding a good market. Abundance of traditional skills in training,
finishing and manufacturing downstream products and relatively low wage rates are the
two other factors of comparative advantage for India.
Tanning and finishing capacity
With tanning and finishing capacity for processing 1192 million pieces of hides
and skins per annum spread over different parts of the country, most of which is
organised along modern lives, the capability of India to sustain a much larger industry
with its raw material resource is evident. In order to augment the domestic raw material
availability, the Government of India has allowed duty free import of hides and skins
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from anywhere in the world. It is an attraction for any foreign manufacturer who intends
to shift his production base from a high cost location to low cost base.
Export Potential
The leather industry, one of the major foreign exchange earners of the country
recorded significant growth since the beginning of the decade. Today the share of the
value added finished products in the total exports from leather sector are 80% as against
20% in 1970s.
Category 1998-99
Finished Leather 265.2
Leather Footwear 290.2
Footwear Components 243.7
Leather Garments 368.6
Leather Goods 429.0
Saddlery and Harness 33.4
Total 1630.1
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India is the world's second largest producer of footwear; its production estimated
over 700 million pairs per annum. At about US $ 300 million per year, footwear accounts
for 18 percent share of total exports of leather exports.
Various types of shoes produced and exported from India include dress shoes,
casuals, moccasins, sports shoes, horacchis, sandals, ballerinas, and booties. Major
production centres are Chennai (Madras), Delhi, Agra, Kanpur, Mumbai (Bombay),
Calcutta and Jalandhar.
Most of the modern footwear manufacturers in India are already supplying to well
established brands in Europe and USA. The large domestic market and the opportunity to
cater to world markets makes India an attractive destination for technology and
investments. Equally relevant is it for the footwear components industry, at this juncture,
it is posed for real growth and diversification.
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The major market for Indian leather goods is Germany, with an offtake of about
25 per cent of the leather goods produced in India followed by USA, UK, France and
Italy. With products ranging from designer collections to personal leather accessories,
this sector has a share of 20.53 per cent in the leather industry, while maintaining an
average growth rate of 11 per cent recorded in the last five years.
India is one of the largest producers of saddlery and harness goods in the world.
The saddlery industry was established in the 19th century primarily to cater to the needs
of military and police. From then on initiatives were taken to develop, the industry and
today there are over 150 units in the organised sector, out of which approximately 105 are
100% export oriented units.
Kanpur, in the state of Uttar Pradesh, is a major production centre for saddlery
goods in India accounting for more than 95% of the total exports of saddlery items from
India. Kanpur, because of its specialisation in tanning and finishing of buffalo hides is the
only centre in the country where harness leather, which is major input for saddlery
industry, is manufactured.
The export of saddlery and harn'ess items have showed an annual growth rate of
about 40% reaching DM 64 million during 1998-99. The major importers of Indian
saddlery are Germany, USA, UK, France, Scandinavia, Netherlands, Japan, Australia and
New Zealand.
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Indian leather garments, which entered the world market only in the mid-eighties
with exports of Rs. 15 crores in 1997-98, account for about Rs. 1530 crore in 1997-98.
The major export destination of leather garments from India is Germany. In 1997,
German imports of leather garments aggregated DM 1786 million of which DM 304
million worth of imports went from India. India, China and Turkey were the major
suppliers of leather garments for the German market, as they accounted for about 78% of
the market share.
Other markets for India include Italy, U.K., U.S.A. France, Spain and
Netherlands. Recently, successful attempt had been made for exports to Denmark,
Switzerland and Canada.
The ratio of investment : sales value is 1: 2.25, which is very low when
compared to other industries. This is mainly due to low capacity utilization of the units.
The capacity utilisation of units in respect of hides converting raw into unfinished
leathers is estimated at 49%, raw to finished 60% and unfinished to finished 70%.
In the case of skin based tanneries, the respective percentages are 64, 67 and 70.
The main reasons reported for under utilisation of capacity are raw material shortage,
high price of raw materials, lack of modernisation, financial constraints, power
constraints and stringent environmental regulations.
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The leather sector offers a good potential which Indian entrepreneurs can exploit in
Germany and other EU markets characterised by ever growing competitiveness in terms
of price and quality, on one hand, and the environmental considerations, on the other.
With a strong foothold that the Indian leather industry has had for long in these markets,
and its advantage of raw material and labour resources, Indian leather exporters can, and
should, mount a concerted marketing campaign to wrest a share consistent with their
inherent strength and potential. This has to be done against the background of the well-
known salient features of the German market:
» Schuhmarkt
» Schuhkurier
» Lederwaren Report
Trade Fairs
» GDS – Dusseldorf » Herren Mode Woche - Munich
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• Full Shoe:1,75,000
• Shoe Uppers:75,000
The leather industry is spread in different segments, namely, tanning & finishing,
footwear & footwear components, leather garments, leather goods including saddlery &
harness, etc.
• Saddlery:6000 pieces
The major production centres for leather and leather products are located at Chennai,
Ambur, Ranipet, Vaniyambadi, Trichi, Dindigul in Tamil Nadu, Calcutta in West Bengal,
Kanpur in Uttar Pradesh, Jalandhar in Punjab, Bangalore in Karnataka, Delhi and
Hyderabad in Andhra Pradesh.
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There exists a large raw material base. This is on account of population of 194
million cattle, 70 million buffaloes, and 95 million goats. According to the latest census,
India ranks first among the major livestock holding countries in the world. In respect of
sheep with 48 million sheeps, it claims the sixth position. These four species provide the
basic raw materialfortheleatherindustry.
The annual availability of 166 million pieces of hides and skins is the main
strength of the industry. This is expected to go up to 218 million pieces by the end of year
2000. Some of the goat/calf/sheep skins available in India are regarded as speciality
products commanding a good market. Abundance of traditional skills in training,
finishing and manufacturing downstream products and relatively low wage rates are the
two other factors of comparative advantage for India.
With tanning and finishing capacity for processing 1192 million pieces of hides
and skins per annum spread over different parts of the country, most of which is
organized along modern lives, the capability of India to sustain a much larger industry
with its raw material resource is evident. In order to augment the domestic raw material
availability, the Government of India has allowed duty free import of hides and skins
from anywhere in the world. It is an attraction for any foreign manufacturer who intends
to shift his production base from a high cost location to low cost base.
Export Potential
The leather industry, one of the major foreign exchange earners of the country
recorded significant growth since the beginning of the decade. Today the share of the
value added finished products in the total exports from leather sector are 80% as against
20% in 1970s.
• Punihani International
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India is the world's second largest producer of footwear; its production estimated
over 700 million pairs per annum. At about US $ 300 million per year, footwear accounts
for 18 percent share of total exports of leather exports.
Various types of shoes produced and exported from India include dress shoes,
casuals, moccasins, sports shoes, horacchis, sandals, ballerinas, and booties. Major
production centres are Chennai (Madras), Delhi, Agra, Kanpur, Mumbai (Bombay),
Calcutta and Jalandhar.
Most of the modern footwear manufacturers in India are already supplying to well
established brands in Europe and USA. The large domestic market and the opportunity to
cater to world markets makes India an attractive destination for technology and
investments. Equally relevant is it for the footwear components industry, at this juncture,
it is posed for real growth and diversification.
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LEATHER PRODUCT INDUSTRY
The major market for Indian leather goods is Germany, with an offtake of about
25 per cent of the leather goods produced in India followed by USA, UK, France and
Italy. With products ranging from designer collections to personal leather accessories,
this sector has a share of 20.53 per cent in the leather industry, while maintaining an
average growth rate of 11 per cent recorded in the last five years.
India is one of the largest producers of saddlery and harness goods in the world.
The saddlery industry was established in the 19th century primarily to cater to the needs
of military and police. From then on initiatives were taken to develop, the industry and
today there are over 150 units in the organised sector, out of which approximately 105 are
100% export oriented units.
Kanpur, in the state of Uttar Pradesh, is a major production centre for saddlery
goods in India accounting for more than 95% of the total exports of saddlery items from
India. Kanpur, because of its specialisation in tanning and finishing of buffalo hides is the
only centre in the country where harness leather, which is major input for saddlery
industry, is manufactured.
Indian leather garments, which entered the world market only in the mid-eighties
with exports of Rs. 15 crores in 1997-98, account for about Rs. 1530 crore in 1997-98.
The major export destination of leather garments from India is Germany. In 1997,
German imports of leather garments aggregated DM 1786 million of which DM 304
million worth of imports went from India. India, China and Turkey were the major
suppliers of leather garments for the German market, as they accounted for about 78% of
the market share. Among the three major exporting nations of leather garments, India
maintains a similar level of market share of about 20%, in both German and EU markets.
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The leather sector offers a good potential which Indian entrepreneurs can exploit
in Germany and other EU markets characterised by ever growing competitiveness in
terms of price and quality, on one hand, and the environmental considerations, on the
other. With a strong foothold that the Indian leather industry has had for long in these
markets, and its advantage of raw material and labor resources, Indian leather exporters
can, and should, mount a concerted marketing campaign to wrest a share consistent with
their inherent strength and potential.
This has to be done against the background of the well-known salient features of the
German market:
• A market influenced by the rising average age of the population and low birth rate
• A market where environment awareness and eco-friendly production becomes more and more a
pre-requisite for successful marketing of products
• Schuhmarkt
• Schuhkurier
• Lederwaren Report
• Window shopping
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• Catalogues/ leaflets
Trade Fairs
Marketing channels
The emerging trend in Germany has been towards direct imports. The other
noteworthy feature is the integration of retailing and manufacturing, particularly for the
footwear sector. This has led to increased emphasis on distribution aspects of business.
Other distributors, like departmental stores, mail order houses, super markets and non-
leather shops have also gained importance. Many outlets get direct supplies either from
the manufacturers and importers or from wholesalers and buying associations (Einkaufs-
Verband, e.V.).
For the successful marketing of their products, the Indian exporters should aim for
long lasting trade relations based on stable partnerships. In such a context, the German
importer needs to be viewed as much more than only a buyer and distributor. He would
normally take care of the timely development of the samples and collections through
fashion and design information and also by employing pattern makers and designers.
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Global Scenario :
The global trade in leather and leather products has been increasing over the years
from mere US$ 4 billion in 1972 to US$ 70 billion in 1997.
Although the exports of Indian leather and leather products have grown manifold
during the past decades, our country's share in global trade is around 3% among world
imports of leather products. Whereas India's share in world imports of leather footwear is
1%. Major exporting countries of leather footwear are China (14% share), Portugal (6%
share), Brazil (5% share) and Indonesia (4% share).
East European countries like Poland, Romania, Czech and Slovak Republics have
re-emerged as major production centres particularly for footwear sector. These countries
pose major challenge to Indian exporters as they enjoy geographical advantage.
Vision
In our endeavor to make India the leading hub for Leather fashion design,
Technology and Management in the world, we shall take necessary steps for creating
quality infrastructure for design, development, production and support service system for
the Indian industry. Our efforts would be in the direction, which makes this Institute the
world leader in the field of Fashion, Design, Technology & Management due to the
quality of our response, range of services and cost effectiveness
Mission
Development and cultivation of best available human resources within the country
by imparting knowledge and skills by conducting appropriate courses.
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• Western Europe, especially the UK, Germany, and Italy account for over 60% of
India’s export of leather and leather products while exports to the US, the largest
market for leather and leather products, have been around 12%.
• India is the largest livestock holding country 21% large animals and 11% small
animals and the source for 10% of the global leather requirement.
• Leather industry occupies a place of prominence in the Indian economy due to its
massive potential for employment, growth, and exports.
Segmented between finished leather, footwear, footwear components (uppers and soles
etc.), leather garments, and leather goods viz. bags, gloves, harness and saddlery, etc.
Envisages investments of about INR 2000 crore (US $450 million) in the next
2 to 3 years for modernizing tanneries and setting up modern production bases.
AGRA
• Large raw material supply base (22%) for the industry corresponding to its live
stock population viz. 1st in buffalo, 2nd in cattle, 4th in goat and 7th in sheep.
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• Over 11,500 leather based production units in UP with Kanpur and Agra as the two
renowned production centers in the world.
• Kanpur is a prominent for leather processing with around 200 tanneries specializing
in processing hides into heavy leather (sole, harness and industrial leather). This is
the only center in India where saddlery products are also manufactured.
• Agra is the largest shoe-manufacturing center in the country. Agra, being central to
other important production centers in UP like Kanpur, NOIDA, and Meerut, is the
reason for PSL to develop a LEATHER SECTOR-SPECIFIC SEZ in this area.
Government & Leather Export Promotion Council have also taken the initiative to
make Agra as a SEZ for leather and leather products.
• Agra will also serve as a major hub linking with other locations, due to its inherent
strengths.
• NOIDA has recently emerged as another major centre especially for leather
garments and footwear. NOIDA offers strong infrastructure facilities, close
proximity to Delhi and the presence of FDDI here is expected to promote the
footwear industry
Hides and skins are the basic raw materials for the leather industry, which
originate from the source of livestock. There was an upsurge in the number of bovine
animals and goats and kids during 1990-2005, while population of sheep and lambs was
on a decline. Developing countries accounted for around 78% of the total population of
bovine animals and 93% of world population of goats and kids in 2005. Stood at 195
million heads in 2005. Although in 1990, India had the highest population of goats and
kids (21% of the total), it was overtaken by China in 1995 and the gap between the two
countries has been widening.
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World production of raw hides and skins was nearly 7 million metric tonnes, of
which production of bovine hides and skins alone accounted for 90% in 2004.
Developing countries are the major producers of raw hides and skins. China played a
significant role in turning developing countries as the major source of global imports of
raw hides and skins.
World leather exports grew moderately, by a CAGR of 7.3%, from US$ 46 billion
in 2000 to US$ 61 billion in 2004. World leather exports can be categorized in to raw
hides and skins (40%), leather articles (49%) and fur skins (11%). China, Hong Kong,
Italy, USA and France are major exporters of leather in the world. World leather articles
exports increased by a CAGR of 8.06%, from US$ 22 billion in 2000 to US$ 30 billion in
2004. China constitutes 34% of the total leather articles exports. Hong Kong (17%),
World bovine animals population stood at 1,529 million heads in 2005. India had the
largest number of bovine animals (283 million heads) with a share of 19% followed by
Brazil (13%), China (9%) and USA (6%). World sheep and lambs population stood at
1,079 million heads in 2005. With a total population of 170 million heads, China had a
share of 16% in the world sheep and lambs population. India (6%) lagged behind at third
position, with a population of 62 million heads. World goats and kids population stood at
807 million heads in 2005. China has the highest population of goats and kids, which
World Livestock Population in 2005.
Export Import Bank of India (Exim Bank) has helped the leather exporting units
to modernize and upgrade their production facilities, install pollution control and
environmental safety systems of internationally accepted standards and develop export
market for value added products through strategic export market development plans.Exim
Bank implemented Agency Line of Credit and Export Development Project, joining
hands respectively with International Finance Corporation (IFC), Washington and the
World Bank to support small and medium enterprises in the leather sector.
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Composition of Indian leather exports has undergone a radical change, from being
a mere exporter of raw hides and skins, to a status of an exporter of value added leather
products. From 1991-92, India has been exporting only finished leather because of export
restriction on semi finished leather. Total leather and leather manufactures exports stood
at Rs.10, 286 crores in 2004-05. Leather footwear is the largest component of leather
exports, with a share of 26%.
World leather imports can be classified in to raw hides and skins, leather articles
and fur skins, with a share of 38%, 55% and 7% of the total world leather imports,
respectively. Leather articles are predominantly imported by USA, Spain, UK and
Belgium; whereas China, Mexico, Turkey and Romania are mainly into imports of raw
hides and skins. Hong Kong, USA and Italy are chief importers of fur skins. World
imports of leather articles are estimated to have grown marginally from US$ 27 billion in
2000 to nearly US$ 34 billion in 2004. USA, the largest importer of this product, is
predominantly captured by China. China’s share in USA’s import of
Leather articles have increased gradually, from 54% in 2000 to 70%in 2004.
Indian Scenario
With about 15% of the world livestock population, India accounted for only 8%
of the leather production in 2002. The Indian leather industry consists of 42,000 small-
scale industry (SSI) units, which account for 75% of the total production. Nearly, 2.5
million people earn their livelihood from this sector. A survey by Central Leather
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Research Institute (CLRI) estimated that about1, 600 tanneries were present in India in
2000. The concentration of tanning industries is mainly in Tamil.
The main export markets for India are Germany, USA, Italy, UK and France. Due
to the two bans imposed by Germany on imports from India, there was a lull in India’s
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exports in 2002-03. Slowly and steadily, it picked up pace and stood at US$ 326 million
in 2004-05. Exports to USA, which was US$ 343 million in 2000- 01, dropped to US$
243 million in 2002-03 and was at US$ 266 million in 2004-05.
India’s major export markets for leather handbags are USA, Germany, UK and
Spain. In UK and Spain, Italy is the top exporting country of leather handbags. However,
China has overtaken Italy and emerged as major exporter in markets like USA, Canada,
Hong Kong and Russia. India has lot of potential in these markets, as it has unique
advantage of economies of scale and capability of producing niche products. Footwear is
a critical segment for the Indian leather industry as this is expected to be the engine of
growth for the Indian leather sector. Currently, the trend in export of Indian footwear has
been encouraging; however the trend for footwear components exports has been
declining. India’s exports of footwear components have dropped from US$ 238 million in
2000-01 to US$ 164 million in 2004-05. Top importers of leather footwear uppers in the
world are China, United Kingdom and Canada. World leather garments exports have
increased over the years. USA, Germany and Japan were the largest importers of leather
garments in the world in 2004. India was placed among the top three exporting countries
of leather garments in these markets. Further, India is the largest sourcing partner of
leather garments to Spain and Italy, which are the major markets for Indian leather
garments. India’s other major export markets are Germany, USA and France. But, India
must be cautious of China, as its unit price of leather garments is cheaper than that of
India.
The Indian leather industry is targeting over US$ 5 billion exports by 2010 and is
expected to add about additional 1 million direct and indirect jobs during this period. At
present, the industry employs 2.5 million people directly and indirectly. Shifting of
Manufacturing Base Major World tanning firms are in the process of shifting their
manufacturing base to developing countries due to high wage levels and strict
environmental norms in developed countries. Factors such as availability of leather,
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production know-how, processing of shoes work in India’s favor. India could effectively
use these advantages to augment its share in global production and exports. Government
Support Technology up gradation and modernization of the entire leathern value chain
should be given priority. Recently, the Government has approved Rs. 290 crores for
modernization and technology up gradation programme. Strong Production Base The
industry should lay emphasis on design and technology, quality and innovation and
economies of scale. Skill development for the manpower engaged in the sector is vital for
enhancing the export potential of this sector. Consolidation in new markets such as
Croatia, Slovakia and Serbia would sustain the export growth momentum for the Indian
leather industry. Imports of leather articles by these countries have increased in the range
of 20- 30% in a period of five years.
New Trends
The industry needs to keep itself abreast with latest fashion trends in the sector. It
is observed that Italian buyers pay attention not only to the quality of the leather products
but also to the accessories used in the garments. It is imperative that adequate care is
taken about the packing material.
Enabling Infrastructure
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Training Facilities
Training programmes should enable the industry to foresee and adapt to changing
trends and technology. It is imperative that the staff is skilled and well qualified to train
the students. Further, programmes need to be conducted to make Indian exporters aware
of different standards and requirements in the global market to ensure that Indian exports
do not get rejected due to environmental norms.
• Endowed with 10% of the world raw material and export constitutes about 2% of
the world trade.
Some snippets from National Foreign Trade Policy 2004-09 were as follows:
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There were certain proposals for 11th Five Year Plan like Stratagem to achieve US
Dollar 7billion export takings by the end of XI five year plan; to increase the equip of
raw hides & skins so as to reduce imports of raw hides & skins; resourcefully address
environmental concerns to make the leather units meet severe environmental norms;
establishing training facilities to cater to the demands of the industry which was facing an
acute shortage of skilled manpower.
Assets
Leather Products
Rs. Crore (Non-Annualised) Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08
Net pre-operative expenses pending allocation 0.08 1.09 1.93 0.02 0.02 0
Net lease reserve adjustment 0 0 0 0 0 0
Less: Cumulative depreciation 551.15 576.28 649.06 653.95 598.68 570.31
Less: Arrears of depreciation 0 0 0 0 0 0
Market value of quoted investments 13.05 4.1 9.09 17.38 42.3 41.3
1
APGMS, Rajampet.
LEATHER PRODUCT INDUSTRY
Liabilities
Leather Products
Rs. Crore (Non-Annualised) Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08
2
APGMS, Rajampet.
LEATHER PRODUCT INDUSTRY
Current liabilities & provisions 1505.97 1518.8 1590.39 1079.14 964.78 888.72
Sundry creditors 435.65 486.23 567.68 485.08 516.27 539.25
Acceptances 4.26 7.76 8.63 14.41 49.3 45.3
Deposits & advances from customers & employees 15.04 18.71 11.53 43.29 51.43 55.23
Interest accrued 157.45 88.22 80.08 61.89 34.09 8.75
Share application money 0.01 0.51 0.01 0.01 0.01 0
Other current liabilities 801.11 820.52 795.88 341.77 202.17 107.2
Provisions 92.45 96.85 126.58 132.69 111.51 132.99
Net worth (net of reval & DRE) 41.81 -38.51 232.52 926.19 1172.19 1186.84
Contingent liabilities 397.75 638.95 623.62 652.54 827.36 782.98
No of companies 72 77 78 73 63 45
3
APGMS, Rajampet.
LEATHER PRODUCT INDUSTRY
Profits
Leather Products
Rs. Crore (Non-Annualised) Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08
Prior period & extra-ordinary income 99.06 10.58 28.84 67.49 75.93 56.66
Prior period & extra-ordinary expenses 13.24 11.92 11.6 20.14 12.09 11.95
Net prior period & extraordinary
transactions -85.82 1.34 -17.24 -47.35 -63.84 -44.71
1
APGMS, Rajampet.
LEATHER PRODUCT INDUSTRY
Leather Products
Rs. Crore (Non-Annualised) Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08
1
APGMS, Rajampet.
LEATHER PRODUCT INDUSTRY
No of companies 72 77 78 73 63 45
Income details
Leather Products
Rs. Crore (Non-Annualised) Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08
1
APGMS, Rajampet.
LEATHER PRODUCT INDUSTRY
Prior period & extra-ordinary income 99.06 10.58 28.84 67.49 75.93 56.66
Prior period income 80.77 5.78 22.97 50.24 22.94 26.52
Cash prior period income 0.19 0.92 3.27 0.17 0.13 0.36
Bad debts recovered 0.03 0.02 0.91 0.12 0.04 0.03
Residual and combined cash prior period income 0.16 0.9 2.36 0.05 0.09 0.33
Non-cash prior period income 80.58 4.86 19.7 50.07 22.81 26.16
Provisions written back 9.59 4.69 8.91 46.49 22.63 25.59
Residual and combined non cash prior period income 70.99 0.17 10.79 3.58 0.18 0.57
Extra-ordinary income 18.29 4.8 5.87 17.25 52.99 30.14
Profit on sale of fixed assets 7.4 4.78 5.25 6.25 5.27 15.47
Insurance claims 0.03 0.02 0.03 11 2.83 2.48
Contra entry for depreciation added 0 0 0 0 0 0
Gain on change in accounting policies 0 0 0 0 0 0
1
APGMS, Rajampet.