Leather industry occupies a
predominant place in India, being the third largest producer next to China and Italy. The industry has a massive potential for employment generation, growth and exports,
with the annual exports touching 2 billion USD. The industry is one among the
top 8 industries for export revenue generation in India. It holds 10% of the
global raw material, and 2% of the global trade. India is the biggest livestock
producer in the world, with the capacity of 1.8 billion square feet of leather production
annually.
Almost 60 to 65% of its total
products are in the small sector. In the recent past, Government has come up
with policy initiatives to upgrade the industry. Later on, the industry
underwent through a positive metamorphosis from a mere transporter of raw
materials to an established exporter of value added and finished leather
products. Currently the industry is on an ever increasing phase with optimum
utilization of available raw materials and maximum returns from exports. Major
exports comprise of skins and hides such as cow, sheep nappa, goat skin and wet
blue. Footwear, leather gloves, garments, handbags, purses, wallets, and
briefcases are some of the products exported.
The post liberalization period
has bestowed vast opportunities for the Indian leather industry. With global
giants seeking alternatives for sourcing, India is a shining option. Leading
brands from EU and US are on their wings to source leather products from India. Realizing the market potential of the country, the Government is making considerable
efforts to promote the advancement of leather industries.
Mr Mukhtarul Amin, Chairman,
Superhouse Group, while interacting with Fibre2fashion
positively asserts that despite global meltdown, Indian leather industry has a
promising future in the global market. He states, "In India, the footwear
industry has a very good future as we have raw material and skilled manpower at
a very reasonable cost" Mr. Amin affirms that the main suppliers for
medium priced leather products are India and China. He further states that India has a competitive benefit over China. "Chinese factories are having serious problems due
to increase in cost of labor in that country and their currency appreciation.
Under these circumstances, India is the only major source for supplying
footwear of that price range."
Agra, Jalandhar, Kolkata,
Chennai, and Kanpur are the major leather hubs of India. The current trend
moves towards sports activities like polo and horse racing with more and more
people getting involved in it. This offers a good scope for India, in both national and international front. Kanpur is emerging as an unquestionable winner for
the manufacture of high quality horse accessories. There are almost 300 units
in Kanpur giving a turnover of approximately 120 USD a year. The sports
accessories manufactured in Kanpur are exported to various international
countries like US, Germany, UK, and Australia.
The Kanpur Leather Cluster:
Majority of the output in the
leather industry is being contributed by the SMEs clustered in five to six
major locations. To enhance their performance, SIDBI has launched a programme
through Business Development Services (BDS). The project was initiated in 2006,
and is being co-funded by the Department for International Development (DFID)
in UK, and GTZ in Germany. One of the clusters for the project, the 'Kanpur Leather
Cluster' encompasses 1600 SMEs and generates employment for around one lakh
people contributing Rs. 2, 900 crores of production for a year. Kanpur leather cluster is notable for the processing of buffalo leather and has the credit
of being the only center in India for making saddlery items and safety shoes
which are being exported to foreign markets.
The ultimate quality of the
Indian leather combined with efficient craftsmanship has secured a sturdy place
for Indian leather goods in the global market. Indian leather industry is
getting more organized, with a springing capacity for expansion.
References:
1)
http://www.indianleatherportal.com
2)
http://www.indianindustry.com
3)
http://kanpurbds.com/
