Indian Leather Goods Industry

Items produced by this sector include, in addition to bags, handbags, handgloves and industrial gloves, wallets, ruck sacks, folios, brief cases, travelware, belts, sports goods, upholstery and saddlery goods. A surfeit of modern units in Chennai, Kanpur and Calcutta employing skilled human resources and equipped with modern and sophisticated machinery account for a diversified range of superlative small leather goods including bags, purses, wallets, industrial gloves etc. made of quality leathers of cows, sheep, goats and buffaloes. The products meet the requirement of bulk buyers and consumers in Europe, USA and Australia. 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.

Top ten Indian leather exporters

Tata International Ltd. Florind Shoes Ltd. Punihani International Farida Shoes Ltd. Mirza Tanners Ltd. T. Abdul Wahid & Company Hindustan Lever Ltd. Super House Leather Ltd. RSL Industries Ltd. Presidency Kid Leather Ltd.

Footwear & Footwear Components

Shoes:100 million pairs Leather shoe uppers:78 million pairs Non-leather shoes/chappals etc:125 million pairs Leather Garments:6 million pieces

Leather Products:70 million pieces

Industrial Gloves:40 million pairs 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.

Raw material supplies

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 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.

http://leather.indiabizclub.com/info/indian_leather_industry_overview

http://www.scribd.com/doc/43877708/Indian-Leather-Industry Indian leather sector: A profile India is the largest livestock holding country 21% large animals and 11% small animals A source for 10% global leather requirement Annual production value over Rs. 186.56 billion (3.354 billion Euros) Annual export value over Rs. 125.46 billion (2.225 billion Euros) Export growth CAGR (compound annual growth rate) 8.61% (5 years) About 2.50 million workforces (30% women) Promising technology inflow and Foreign Direct Investment Enormous potential for future growth (domestic as well as export)

MAJOR PRODUCTION CENTERS IN INDIA Major production centers in India are Tamil Nadu Tamil Nadu has a dominant presence in the leather and leather based industries. The tanningindustry in India has a total installed capacity of 225 million pieces of hide and skins of whichTamil Nadu alone contributes to an inspiring 70%. Leather industry occupies a pride of place inthe industrial map of Tamil Nadu. The major production centres in tamilnadu areChennai,,Ambur, Ranipet, Vaniyambadi, Trichy and Dindigul. West Bengal West Bengal is one of the country's top states for export of finished leather goods. Bata India Limited is India's largest manufacturer and marketer of footwear products. It has 5 plants near Kolkata. Main plant is located in Batanagar near Kolkata. Bata India secures its leather supplyfrom two tanneries in Mokamehghat (Bihar) and Batanagar (West Bengal).The number of manufacturing industries engaged in leather products is 538 in West Bengal. Uttar Pradesh U.P. is one of the most important states in India holding sizeable population of live stock. Claiming a share of 22% U.P. ranks Ist in case of Buffalo and 2nd in case of Cattle having a share of 12% Thus, U.P. has a very strong raw material base and all types of main raw material for leather industry are available.

Leather goods have a share of 20.53% of total leather goods.

http://www.indianmirror.com/indian-industries/leather.html

Size of the Industry

Indian leather industry has capacity to produce l776 million pairs; 112 million pairs of Shoe Uppers; Non-leather footwear - 960 million pairs Tamil Nadu - Chennai, 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 Has an annual turnover of approximately US$ 5,000,000 Indian Leather Industry currently is one among the top 8 industries for export revenue generation in India, holding 10% of the global raw material, and 2% of the global trade India produces approx 700 million pairs of leather footwear every year and accounts for an 18% share of the total Indian leather export.

Geographical distribution Output per annum Percentage in world market Market capitalization

Indian Leather Industry currently is one among the top 8 industries for export revenue generation in India, holding 10% of the global raw material, and 2% of the global trade. India has become biggest livestock producer in the world, with the capacity of 1.8 billion square feet of leather production annually.

The Indian leather industry provides employment to about 2.5 million people in the country and has an annual turnover of approximately US$ 5,000,000. Top leading Companies Acme, Clarks, ColeHann, Deichmann, Nautica, Nike, Nunn Bush,Ecco, Elefanten, Hush Puppies, Double H, Florsheim, Gabor, Hasley, Justin, Marks & Spencer, Reebok, Salamander, Stacy Adams, Tony, Lama, Next, Bally are the prominent brands sourced from India. Lakhani, Metro, Action, Red Tape, Bata, Liberty, Khadims, are some Indian brands that have a well established market in India. Aldo, Bally, Clarks, Ecco, Florshiem, Ferragammo, Hush Puppies, Lee cooper, Lloyd, Marks & Spencer, Nike, Nine West, New Balance, Reebok, Rockport, Stacy Adams are a few notable leather product brands sold in India.

http://www.researchandmarkets.com/reports/705558/global_handbag_purse_wallet_and_accessories

below: Table 1 - Production base of leather and leather products

Sector / production Small Medium & Product capacity scale Large scale Estimated Household sector sector annual Sector 1 Tanneries 2.5 billion sq.ft. . 35 55%* . Leather 10% % * 2 otwear Leather 100 million pairs of 15 . 1009 million pairs shoe uppers) % F (includes about 60% o 25% 3 Footwear Non 1056 million 15 70 15 . leather pairs % % % 4 Garments and 20 million pieces 95 5% . outerwear Nil % 5 Assorted 120 million 10 85 5 . leather goods pieces % % % 6 Saddlery and 12 million 40 60 Ni . Harness pieces % % l 7 . L e a t h e r gl o v e s 1 0 0 m ill io n pi e c e s

*A small scale industrial unit is one where the investment in plant and machinery