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India to set up bonded leather plants on domestic grounds

May '08
Bangladesh may very soon find Indian shoe and accessory manufacturers setting up their base in the country and it should not be a surprise since the local market which is growing rapidly, is the major reason behind these companies getting attracted.

Last year, Bangladesh exported footwear products worth US $145 million and leather garment products worth $130 million with a 22 percent growth in exports.

A group of Indian shoe and shoe component manufacturers attended a 2-day exhibition at the Bangladesh China Friendship Conference Centre (BCFCC) and the decision to have a base on domestic grounds may be an outcome of this event.

Although, the Indian companies are presently supplying shoe accessories to Bangladesh, they also have plans to establish a plant in the country.

The Indian component industry alone is worth over Rs40 millions excluding leather. Companies like Coats India and Vacouro Leather (India) Pvt Ltd, have expressed keen interest in setting up their plants in Bangladesh.

Vacouro is keener on coming up with a bonded leather unit in Bangladesh which is essentially an item produced from the pulps of scrap of leather and leather goods. More than 10 companies in India are engaged in producing this reusable leather for manufacturing shoes and other leather products.

Experts believe that Bangladesh has a bright prospect for bonded leather as its usage in the country is on the rise. In fact, because of its bio-degradable characteristics, demand for this leather is increasing world-wide.

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