Leather Industry in India | Industry Report

Leather Industry in India
Report Code: INDR-006 Period: 1980 - 2005 Industry: Leather Countries: India Report Length: 32 Pages	Year of Publication: 2005 Price: Electronic Format: Rs. 700

Executive Summary

The Indian leather industry is spread over the formal as well as informal sectors and produces a wide range of products from raw hides to fashionable shoes. The industry comprises of firms in all capacities starting from small artisans to prominent global players. Specialized institutions like CLE (Council for Leather Exports) and CLRI (Central Leather Research Institute) have been set up to promote the overall performance of the industry.

India ranks first among major livestock holding countries in the world and thus has a rich endowment of raw materials in terms of the cattle population. It has the capacity to fulfill 10% of the global leather requirement. Export of leather and leather products during 2004-2005 registered an impressive growth at US$2,380 million, exceeding the target of US$2,284 million fixed by the Commerce Ministry.

Leather footwear is the leading product category driving the growth of the leather industry. In 2005, leather footwear alone accounted for 30% of the total export of leather and leather products from India.

The post liberalization era has opened up a plethora of opportunities for the Indian leather industry. With global players looking for new sourcing options (in addition to China), India stands to gain a bigger share of the global market. Leading brands from the US and Europe are planning to source leather and leather products from India. Global players who participated at the India International Leather Fair, 2005, consider India as the market to be in. The 2006 fair is being designed to focus on the opportunities for sourcing from India.

This report looks at the leather industry from both the macro and micro perspectives. At the macro level it deals with international competitiveness of the industry, environmental and regulatory issues like PCP (Pentachlorophenol) concentration and concerns on animal rights violations, employment creation, and trade-related details. It also provides information on the micro structure of the Indian leather industry, the major players and foreign collaborations.

India has a less than 3% share in the global trade in leather compared to China's 20%. Realizing the growth potential of the leather industry, the Government of India has been making significant efforts to promote rapid advancement of the industry. On June 30, 2005, the Cabinet Committee on Economic Affairs (CCEA) decided to implement a Rs 2.9 billion scheme for the integrated development of the leather sector. Under this scheme, existing tanneries will be modernized and new units will be set up for footwear, components and leather products. This scheme is expected to result in gains in terms of productivity, right-sizing of capacity, cost-cutting, and design-development.

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