indian leather industry at a glance

1、indian leather industry at a glance the indian leather industry occupies a place of prominence in the indian economy in view of its substantial export earnings, employment generation and growth. there has been increasing emphasis on its planned development, aimed at optimum utilization of available

2、raw material for maximizing the returns particularly from exports. the export of leather and leather products increased manifold over the past decades. the export increased from rs. 290 mn in 1956-57 and from rs. 30760 mn in 1991-92 to rs. 140007.33 mn in 2007-08. today the industry ranks 8th in the

3、 export trade in terms of foreign exchange earnings of the country. the composition of export of leather and leather products from india has undergone a structural change during the last three decades, from merely an exporter of raw material in the sixties to that of value added products in the nine

4、ties. the value added finished products presently constitute around 80% of the total export from the industry, which was mere 7% in 1956-57. india accounts for a share of 2.62% in the global leather trade during 2006. with the exclusion of non-leather footwear, this is slightly higher at 3.41%. the

5、indian leather industry is organized as follows: tanning & finishing footwear & footwear components leather garments leather goods (bags, wallets, belts, gloves, accessories) saddlery and harness articles the major production centers for leather and leather products are located in: tamil nadu - chen

6、nai, ambur, ranipet, vaniyambadi, trichy, dindigul west bengal kolkata uttar pradesh kanpur, agra & noida maharashtra - mumbai punjab - jallandhar karnataka bangalore andhra pradesh - hyderabad haryana - ambala, gurgaon, panchkula and karnal delhi. indian leather sector: a profile india is the large

7、st livestock holding country 21% large animals and 11% small animals a source for 10% global leather requirement annual production value us$ 5 billion annual export value us$ 3.47 billion export growth cagr 11.91% (5 years) about 2.50 million workforce (30% women) promising technology inflow and for

8、eign direct investment top priority to occupational safety and work environment meticulous concern for consumer safety compliance to environmental standards enormous potential for future growth (domestic as well as export) estimated production capacities: itemcapacityhides 65 million piecesskins170

9、million piecesleather footwear909 million pairsleather shoe uppers100 million pairsnon-leather footwear1056 million pairsleather garments16 million piecesleather goods63 million piecesindustrial gloves52 million pairssaddlery & harness12.50 million piecessource: clri strengths of indian leather sect

10、or: own raw material source 2 billion sq ft of leather produced annually some varieties of goat / calf / sheep skins command premium position strong and eco-sustainable tanning base modernized manufacturing units trained / skilled manpower at competitive wage levels world-class institutional support

11、 for human resources development and r & d activities presence of support industries like leather chemicals and finishing auxiliaries presence in major markets long europe experience preferred sourcing by several international brands pierre cardin, versace, next, hugo boss, tommy hilfiger, florsheim

12、, clarks, k shoes, dkny, liz claiborne, guess etc strategic location in the asian landmass emerging strengths design development initiatives by institutions and individuals continuous modernization and technology upgradation economic size of manufacturing units constant human resource development pr

13、ogramme to enhance productivity increasing use of quality components shorter prototype development time delivery compliance growing domestic market for footwear and leather articles government support policies the entire leather sector is now de-licensed and de-reserved, paving way for expansion on

14、modern lines with state-of-the-art machinery and equipments. 100% foreign direct investment and joint ventures permitted through the automatic route 100% repatriation of profit and dividends, if investments made in convertible foreign currency. only a declaration to this effect to the reserve bank i

15、s required. promotion of industrial parks (one leather park in a.p; one leather goods park in w.b; one footwear park in t.n. and one footwear components park in chennai) funding support for modernizing manufacturing facilities during tenth plan period 2002-07 funding support for establishing design

16、studios duty free import of all types of raw materials duty-free import of embellishments and components under specific scheme concessional duty on import of specified machinery for use in leather sector. duty neutralization/remission scheme in place like depb and duty drawback liberal import-export

17、 of consumer products and components gradual lowering of import tariff - peak rate 10% simplified import-export procedures, facilitating quicker customs clearances export performanceindias export of leather and leather products for five years (value in million us$) 2003-042004-052005-062006-072007-0

18、8finished leather555.71607.73636.27724.00766.93footwear767.73910.771045.241236.911475.83leather garments301.08329.44333.30309.91343.99leather goods539.21585.72660.17706.28784.95saddlery & harness52.7161.7177.5282.33105.81total2216.452495.372752.503059.433477.52% growth18.20%12.58%10.30%11.15%13.67%s

19、ource: dgci&s indias export was growing at a cagr of 11.91% in the last 5 years. global leather import trade was growing at a cagr of 8.77% during last 5 years.major importing countries of indian leather and leather products the country-wise performance for five years: (value in million us$)country

20、2003-042004-052005-062006-072007-08cagr growth %germany329.82350.79363.24410.08488.7210.33%.italy285.02258.23317.04413.35479.0413.86%.uk250.65313.69345.54359.84414.3213.38%.usa251.58290.42318.36317.59306.695.07%.hong kong226.97247.68252.15279.72267.934.23%.spain161.23176.70200.18185.78212.077.09%.fr

21、ance109.82140.00143.72174.04196.1715.60%.netherlands57.7565.6882.95100.82133.3723.27%.uae37.3948.0352.3462.5574.5318.82%.portugal34.0738.3842.2049.9256.0613.25%.belgium24.2435.1040.2043.0154.5322.46%.china22.8734.5138.7142.5251.9022.73%.australia32.0336.4143.2239.3849.7411.63%.denmark24.6630.8440.46

22、42.3049.0818.77%.sweden19.6123.4925.8229.0138.8118.60%.canada25.5929.7034.8032.1735.908.83%.korea rep.25.4730.9834.4536.2828.803.11%.south africa20.6421.7124.3835.2327.497.42%.switzerland16.6418.3521.5421.9225.4711.22%.austria19.1221.2323.3821.7925.437.39%.greece21.1119.5321.9424.2223.382.58%.saudi

23、arabia10.6112.0814.6315.7715.539.99%.japan10.3710.5712.3712.2615.4110.40%.russia11.338.0511.4917.1814.957.17%.indonesia8.4210.2212.6612.1714.9015.33%.finland4.236.627.729.8714.3335.66%.ireland4.085.774.565.468.0718.59%.new zealand4.223.285.646.055.607.32%.others166.91207.33216.81259.15349.3020.27%.t

24、otal2216.452495.372752.503059.433477.5211.91%.source : dgci & s import scenario:indias import of raw hides & skins and leather for five years (value in million us$)category 2003-042004-052005-062006-072007-08 raw hides & skins49.8050.2158.2169.5884.12 leather171.01212.70233.11288.85336.56total220.81262.91291.32358.44420.68source: dgci & sindian leather industry a vision document 2010keeping in view the past performance, current trends in the global trade industrys in inherent strengths and the growth prospects, the industry aims