Home / Knowledge / News / Cluster model for leather sector to be extended across TN
Cluster model for leather sector to be extended across TN
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

Must ReadView All

Apparel/Garments | On 26th Oct 2016

SGS develops 4C chemical management model for apparel

SGS, a leading inspection, auditing, certification, testing, and...

Textiles | On 26th Oct 2016

Platinum Equity acquires International Textile Group

International Textile Group (ITG) has been acquired by Platinum...

Textiles | On 26th Oct 2016

Whitehouse & URI Business Centre start RI textile network

Senator Sheldon Whitehouse and the University of Rhode Island...

Interviews View All

Victor Chao

‘In future, clothing boundary lines will become increasingly blurred.’

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search