Leather exports to touch $8bn from $3bn by 2012: ASSOCHAM

09 May '07

3 min read

Leather exports are anticipated to touch $ 8 billion from $ 3 billion now by 2012, registering a growth of about 167% provided a well thought out strategy is put in place for capacities enhancement with increased innovative production plans to encourage leather manufactures to diversify their operations by inducting latest designs into non-leather footwear manufacturing.

In an analysis carried out by ASSOCHAM on “Leather Exports”, it has been pointed out that Leather Industry currently employs 2.5 million workforce and with suggested strategy in place the number of potential employees will rise by another 2 million in next 5 yeas since the potential of leather industry has yet to be harnessed as per its potential.

The contribution of Small/Cottage Sector in the total leather industry's production to the extent of 65% with export volumes ranging to about slightly lesser than $2 billion US dollars. Leather industry is amongst top 8 export earners for India.

Releasing the paper, ASSOCHAM President Mr. Venugopal N Dhoot suggested that leather industry can transform itself for complete turn around with increase in tanning and production capacity to cater to huge footwear market. The present tanning should be more than double to 5 Billion Sq. ft. In the case of footwear, the present capacity of 2, 50,000 pairs a day could increase to over 1.5 million pairs a day. This would mean an increase of 7,75,000 pairs a day.

The paper has lamented that in the recent past there has no measure changes ushered in tanning technology as such but there are number of improvements in the leather processing either in terms of using lesser water and chemicals than in the past or in terms of getting wide range of finishes for the leather.

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