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Cluster model for leather sector to be extended across TN
18
Oct '11
The initiatives introduced for development of micro, small and medium enterprises (MSMEs) in the leather sector in Chennai will be extended to other leather clusters across Tamil Nadu, Dr. Dinesh Awasthi, Director, Entrepreneurship Development Institute of India (EDI), Ahmedabad, has said.

Speaking at an event held to demonstrate the success model, developed by the EDI, Dr. Awasthi said the model helped the small units in the cluster to upgrade their technology, boost efficiency and attain economies of scale.

Chennai's leather industry is a home to more than 200 tanneries and 300 leather item manufacturing units, with majority of them being export-oriented. Factors like cost-cutting and using technology infusion for improving efficiency have significantly contributed in the development of these enterprises.

Through the cluster model initiative, the EDI facilitated devising of a special purpose vehicle with 22 leather units that synchronized their chemical and dyes purchases. This helped the units to significantly reduce their costs to Rs. 250-260 per kg, as against a cost of Rs. 400 per kg that they would have otherwise incurred if they would have purchased the dyes and chemicals in their individual capacity.

The programme also introduced some other similar measures like enhancing energy-efficiency, technology upgradations to improve capacities, international certifications and skill development.

Representatives of the leather industry have shown interest in introducing this model in other leather clusters like Vaniyambadi, Ambur and Ranipet. It is intended to bring all the 550 tanners in the State of Tamil Nadu within the ambit of this programme.

EDI is an autonomous body and not-for-profit institution, sponsored by apex financial institutions of the country, including the IDBI Bank Ltd. and State Bank of India (SBI).

Fibre2fashion News Desk - India

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