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Leather Goods & Accessories & Gloves

Global Scenario: The global imports of leather goods & gloves had increased from US$ 13829.75 mn in 2006 to US$ 17017.35 mn in 2010, growing at a cumulative annual growth rate of 5.32%. A Statement showing global import of leather goods & gloves viz-a-vis Indias export and share during 2006 to 2010 is given below: (Value in Million US$)

Leather Goods & Gloves WORLD IMPORT INDIA'S EXPORT % SHARE OF INDIA

2006 2007 2008 2009 2010 13829.75 16415.68 18136.44 14380.87 17017.35 706.29 800.47 873.45 757.02 855.78 5.11% 4.88% 4.82% 5.26% 5.03%

Indias export of leather goods & accessories has increased from US$ 706.29 mn in 2006-07 to US$ 1088.09 mn in 2011-12, growing at a cumulative annual growth rate of 9.02% Major importing Countries of Leather Goods & Gloves 2006 vis--vis 2010 A comparison (Value in Million US$)

Country USA Hong Kong Japan France Germany UK Italy Korea Rep China Singapore Spain Canada Switzerland

2006 3262.84 1493.35 1570.15 817.29 717.48 743.65 705.78 203.70 171.03 258.95 303.92 291.53 279.29

2010 3246.51 2161.18 1671.00 1083.13 901.65 837.87 821.88 516.59 493.72 406.48 349.52 347.22 339.72

These 13 countries together accounts for a share of 77.43% in global leather goods & gloves import. Top Exporting countries of Leather Goods & Gloves 2006 vis--vis 2010 A comparison

(Value in Million US$) Country 2006 China 3102.04 Italy 2708.19 Hong Kong 1821.62 France 2313.18 India 706.28 Germany 401.73 USA 467.81 Singapore 96.48 Switzerland 223.94 Spain 232.72 Pakistan 238.82 Leather Gloves:

2010 4064.43 3006.06 2507.79 2412.82 814.91 506.30 377.69 325.04 267.31 238.20 235.33

The global imports of Leather Gloves had increased from US$ 1933.86 mn in 2006 to US$ 1959.88 mn in 2010, growing at a cumulative annual growth rate of 0.33%. A Statement showing global import of Leather Gloves viz-a-vis Indias export and share during 2006 to 2010 is given below (Value in Million US$) 2006 2007 2008 2009 2010 1933.86 2092.08 2435.84 1764.28 1959.88 137.94 183.26 232.05 121.22 165.63 7.13% 8.76% 9.53% 6.87% 8.45%

WORLD IMPORT INDIA'S EXPORT % SHARE OF INDIA

Major importing Countries of Leather Gloves 2006 vis--vis 2010 A comparison (Value in Million US$)

Country USA Germany Japan France Canada

2006 600.19 134.67 138.49 92.24 87.70

2010 536.50 158.09 127.27 108.31 99.93

Hong Kong UK Italy Sweden Netherlands Korea Rep. Australia Spain

173.88 72.08 73.27 49.35 39.79 23.10 33.07 54.93

99.62 80.31 68.27 61.97 49.12 47.30 39.88 39.62

These 13 countries together accounts for a share of 77.36% in global leather gloves import. Indian Scenario Leather Goods form an important segment of the leather industry in India. Leather goods production capacity is estimated to be 63 million pieces annually. The different types of Leather Goods and accessories are manufactured in India i.e., Trunks, suitcases, vanity-cases, executive-cases, brief-cases, school satchels, traveling bags / luggage, Portfolio and similar such items, Hand Bags, shopping bags and similar such items, Wallets, Purses, Pouches, Passport Holders, Credit Card Holders, Diary covers and similar such items, Leather Belts, Caps etc. India also produces Leather Upholstery Sofa Seat Covers, Car Seat Covers etc. Most of the units manufacturing leather goods are located in Kolkata, Chennai, Mumbai, Kanpur, Bangalore and Puducherry. Industry is situated in few other clusters also. India is the fifth largest exporter of leather goods and accessories (inclusive of Gloves) in the world. Leather Goods and accessories manufactured in India bear brand names like Coach, Pierre Cardin, Yves St Laurent, Etienne Aigner, Geoffery Beene, Harrods, Marks & Spencer, Liz Caliborne, Guess, Next, Tommy Hilfiger, Kieffer, Waldhausen, Biemen, Nederinum, Zaldi, Kallquists, Shires, GFS, Millers, Eisers, Weco, Ukal and Decalthon. Leather Gloves: Leather gloves of all categories like fancy/fashion gloves, sports gloves, industrial gloves and other leather gloves is a thrust product among the items of small leather goods being manufactured and exported from India. India is the fourth largest exporter of Leather Gloves to the world. India produces about 52 million pairs of industrial gloves annually. India offers the world the largest technically trained manpower in leather craft at the most competitive costs. Its association with respected product testing institutions such as SATRA in the UK and PFI in Germany ensures the finest quality leather in the manufacturing of gloves. Indias Export of Leather Goods & Accessories including Gloves 5 years

(Value in Million US$) 2008-09 2007-08 800.46 Source: DGCI& S Indias export of Leather Goods & Accessories including Gloves touched US$ 1088.09 million in 2011-12, holding a share of 22.35% in Indias total export of US$ 4868.71 mn Major Markets The major markets for Indian leather goods & gloves are USA with a share of 18.06%, Germany 15.80%, UK 12.61%, Spain 7.27%, Italy 6.16%, France 5.49%, Netherlands 4.49%, UAE 3.22%, Australia 3.14%, Denmark 2.56%. Indias Export of Leather Goods & Accessories Country-wise 5 Years (Value in Million US$) 2007-08 Countries Germany USA UK Italy France Hong Kong Spain Russia Netherlands Australia New Zealand Denmark Belgium UAE Source: DGCI& S Quantity-wise Export of Leather Goods: (In Pcs) 122.65 123.86 133.92 56.96 36.07 3.37 59.93 1.02 36.51 28.48 2.25 15.20 13.94 26.16 2008-09 132.08 155.02 125.77 67.51 45.04 4.22 52.33 1.01 41.91 32.72 2.02 17.02 14.88 34.97 2009-10 117.75 137.97 123.08 44.82 38.90 5.77 51.47 0.57 38.12 26.00 1.56 16.16 12.34 21.63 2010-11 135.34 162.90 131.74 46.57 48.16 8.71 62.82 0.97 40.86 26.27 2.35 18.91 14.83 21.76 2011-12 171.96 196.47 137.20 66.99 59.68 11.45 79.05 2.46 48.90 34.11 3.34 27.80 18.94 35.00 873.44 2009-10 757.02 2010-11 855.78 2011-12 1088.09

2010-11 Ladies Handbags and other bags 14,352,908 Wallets 49,358,526 Leather Belts, Caps & Ties 10,967,894 Purses 6,725,954 Pouches 4,253,178 Passport holders / Credit card holders 4,623,278 etc Travel / Luggage ware 584,100 Handcrafted leather items 1,998,087 Sofa / Chair/ Car seat covers 100,867 (upholstery) Diary Covers / Cheque Book Covers 1,135,307 Pet Accessories 193,119 Portfolio / Briefcases 193,119 Desktop materials 195,081 Covers for Camera, Calculator etc 170,871 Leather Toys 141,743 Other Leather Goods 31,543,283 Total 126,987,079 CLE Membership Records Quantity-wise Export of Leather Gloves: (In Prs) 2010-11 111,566,296 1,787,382 31,394 788,357 114,173,429

Industrial Gloves Fancy / Fashion Gloves Sports Gloves Other Leather Gloves Total CLE Membership Records

Region-wise Export of Leather Goods: (In pcs) 2009-10 2010-11 9,514,731 15,138,867 50,354,885 55,874,869

Central East

North South West Total

26,994,279 32,043,216 22,915,160 19,429,738 4,014,707 4,500,389 113,793,762 126,987,079

CLE Membership Records Region-wise Export of Leather Gloves: (In prs) 2009-10 2010-11 46,090 0 97,489,114 110,917,148 194,650 273,967 2,802,371 2,918,717 82,624 63,598 Total 100,614,849 114,173,430

Central East North South West

CLE Membership Records With the availability of quality raw materials coupled with skilled craftsmanship, India is now poised to make itself a major destination for global sourcing of leather goods and accessories. State-of-the-art production units and in-house Design Studios will strengthen the industry in producing products with exquisite design and quality. The industrys accelerated development and growth is being aided by the ambitious capacity expansion & modernization plans of private industry and the Indian Governments encouraging policy measures.

ndian Footwear Industry A Status Note


The footwear sector is a very significant segment of the leather industry in India; rather it is the engine of growth for the entire Indian leather industry. India is the second largest global producer of footwear after China, accounting for 13% of global footwear production of 16 billion pairs. India produces 2065 million pairs of different categories of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million pairs and non-leather footwear - 1056 million pairs). India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand. The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulam. About 1.10 million are engaged in the footwear manufacturing industry. . Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials. Brands sourced from India: Footwear Acme, Ann Taylor, Bally, Charter Club, Clarks, Coach, Colehann, Daniel Hector, Deichmann, DKNY, Double H, Ecco, Elefanten, Etienneaigner, Florsheim, Gabor, Geoffrey Beene, Guess, Harrods, Hasley, Hush Puppies, Kenneth Cole, Liz Claiborne, Marks & Spencer, Nautica, Next, Nike, Cole Haan, Nunn Bush, Pierre Cardin, Reebok, Rockport, Salamander, Stacy Adams, Tommy Hilfiger, Tony Lama, Versace, Yves St. Laurent, Zara, Johnston & Murphy, Docksteps, Timberland, Armani, Geox, Diesel, Ted Baker, Lacoste, Kickers, Calvin Klein, Sioux, Brasher, Zegna, Massimu Dutti, Buggatti, Lloyd, Christian Dier, Salamander, Camper, Bata, Espirit, French Connection, Legero, Mercedez, H & M and many more famous brands Besides, major brands are sourced from India, MNC brands are sold in India and Indian brands sold in India. Indian Brands sold in India

MNC Brands Sold in India

Aldo, Bally, Clarks, Ecco, Florshiem, Ferragammo, Hush Puppies, Lee cooper, Lloyd, Marks & Spencer, Red Tape, Bata, Liberty, Nike, Nine West, Khadims, Lakhani, Metro, New Balance, Reebok, Rockport, Action Stacy Adams, Tods, Geox , Louis Vuitton US Retail giant Wal-Mart has also begun sourcing footwear from India since the last two years. The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern lines with state-of-the-art machinery. To further assist this process, the Government has permitted 100% Foreign Direct Investment through the automatic route for the footwear sector. Conducive Investment climate towards attracting overseas investments and increasing cost competitiveness. The Government of India is setting up dedicated Footwear Complex and Footwear Components Part where footwear clusters are located. There has been active interest in collaborating with Indian Footwear companies from European countries like Italy, Spain and Portugal. Footwear Imports Global Trend: Major Importing Countries of Footwear (Leather and Non-Leather) (Value in Million US$) Country USA Germany France UK Italy Hong Kong Japan Russia Spain Netherlands Belgium Canada 2006 19835.93 5591.77 4778.07 4950.49 4047.37 4984.59 3509.83 1121.68 2036.21 1978.33 2057.39 1507.21 2007 20039.13 5966.99 5473.04 5281.55 4529.77 4881.67 3750.04 2067.82 2388.74 2297.95 2543.04 1677.05 2008 20104.41 6529.33 5714.00 5213.00 4810.25 4944.40 4112.99 2843.81 2917.97 2570.86 2892.62 1748.04 2009 17904.13 6037.73 5379.78 4772.59 4484.10 3974.30 4077.58 2149.42 2464.34 2481.35 2554.50 1645.09 2010 21530.97 6814.89 5802.18 5529.01 4928.22 4676.06 4468.16 3768.80 2816.83 2752.38 2554.59 1869.25

Source: ITC, Geneva

Major Exporting Countries of Footwear (Leather and Non-Leather) (Value in Million US$) Country China Italy Hong Kong Vietnam Belgium Germany Spain Indonesia Netherlands France Portugal Brazil India 2006 21014.63 8246.51 5692.82 2960.28 2607.89 2147.74 1514.63 1577.03 1535.21 1465.11 1863.07 1236.91 2007 24181.69 9712.94 5639.64 3375.63 2999.19 2440.47 1567.05 1811.96 1840.51 1695.88 1911.74 1489.35 2008 2009 2010 28115.96 26571.20 33665.11 10218.75 8189.14 8754.52 5666.05 4502.49 5243.74 3680.80 3611.90 2670.35 1828.44 2240.70 2015.13 1797.00 1881.30 1534.32 3464.10 3194.69 2487.12 1688.35 2235.80 1800.70 1552.74 1359.98 1507.59 3716.77 3443.61 2449.73 2428.72 2412.14 1969.58 1719.67 1472.42 1732.04

Source: ITC, Geneva Footwear Global Scenario and Indias share The global import of Footwear (both leather footwear as well as non-leather footwear) has increased from US$ 73.79 billion in 2006 to US$ 91.37 billion in 2010, growing at a CAGR of 5.48%. During 2010, the Indias share in the global import is 1.95%. (In Million US$) 2006 2007 2008 2009 2010 Global import of Footwear 73795.96 81574.25 88731.08 78249.66 91373.82 India's export of Footwear 1236.91 1489.35 1534.32 1507.59 1758.67 & Uppers % Share of India 1.67% 1.82% 1.72% 1.92% 1.92% Source: ITC, Geneva & DGCI &S, Kolkata Global Footwear import includes leather & non-leather Indias Footwear includes Leather, non-leather and uppers Footwear is the engine of growth of the leather industry in India. Indias export of Footwear touched US$ 2077.27 million in 2011-12, accounting for a share of 42.67% in Indias total export from the leather sector of US$ 4868.71 mn Indias Footwear export (leather, uppers & non-leather) is growing at a CAGR of 8.67% in the last five years ending 2011-12

Indias export of leather footwear had increased from US$ 1174.03 million in 2007-08 to US$ 1715.17 million in 2011-12 Indias export of footwear components had increased from US$ 269.30 million in 200708 to US$ 281.83 million in 2011-12 Indias export of non-leather footwear has increased from US$ 46.02 million in 2007-08 to US$ 80.27 million in 2011-12

Indias Footwear Export Growth over the last Four Decades Export of footwear from India increased manifold over the last four decades. During 2011-12, Indias footwear export is valued at US$ 2077.27, constituting 42.67% share in total export of leather & leather products.

Footwear exports has increased from US$ 119.72 million in 1981-82 to US$ 2077.27 million in 2011-02 Major Markets: During 2010-11, the main markets for Indian Footwear are UK with a share of 19.16%, Germany 16.15%, Italy 12.46%, USA 8.04%, France 8.93%, Spain 6.45%, Netherlands 4.51%, Portugal 1.41%, U.A.E 2.45% and Denmark 0.97.%. These 10 countries together accounts for 80.53% share in Indias total footwear export. Nearly 90% of Indias export of footwear goes to European Countries and the USA. Future growth of Indian footwear in India will continue to be market driven. The European countries and the US are major consumers for the Indian footwear.

A Statement showing Indias Export of Footwear to different countries: (Value in Million$) 20072008200920102011% 08 09 10 11 12 Share 246.84 229.65 224.3 286.7 353.77 17.03% 241.37 247.06 296.45 339.65 360.48 17.35% 229.81 221.09 210 219.72 219.79 10.58% 136.92 163.03 123.6 143.02 183.1 8.81% 116.03 119.2 144.56 154.95 159.27 7.67% 76.69 91.86 95.94 112.05 113.85 5.48% 72.91 76.2 65.13 6.19 101.72 4.90% 37.34 28.21 22.63 25.69 28.77 1.38% 39.23 39.4 39.45 41.82 62.06 2.99% 17.48 14.78 17.01 16.55 24.3 1.17% 12.52 13.34 15.5 12.82 15.59 0.75% 12.04 12.64 12.2 12.07 14.08 0.68% 10.41 8.96 9.3 10.56 15.01 0.72% 8.52 8.49 9.87 11.33 14.75 0.71% 4.63 8.23 5.45 7.51 14.63 0.70% 226.61 252.18 216.2 358.04 396.10 19.07% 1489.3 1534.3 1507.5 1758.6 2077.2 100.00 5 2 9 7 7 %

Country Germany UK Italy USA France Spain Netherlands Portugal UAE Denmark Australia Sweden Canada South Africa Japan Others Total

2005200606 07 170.97 217.23 195.78 208.2 134.35 186.11 131.07 127.15 74.48 99.81 63.7 64.57 32.96 48.57 22.15 35.03 25.78 34.64 18.37 14.65 11.58 10.11 6.77 7.99 11.95 10.91 8.26 12.11 3.17 3.07 133.9 156.76 1045.2 1236.9 4 1

Future Trends: - Keeping in view its past performance, current trends in global trade, the industrys inherent strengths and growth prospects, the footwear industry aims to augment production, thereby enhancing its exports from the current level of US$ 2.07 billion. Indian footwear industry poised for growth India has state-of-the-art manufacturing plants. The footwear sector has matured from the level of the manual footwear manufacturing method to the automated footwear manufacturing systems. Footwear production units are installed with world class machines. Manned by skilled technicians, these machines help to turn any new innovative idea into reality. Support systems created for the sector have indeed served the footwear industry well. India has a well developed footwear component manufacturing industry. The future growth of the footwear industry in India will continue to be market-driven, and oriented towards EU and US markets. With technology and quality of the footwear improving year after year, Indian Footwear industry is stamping its class and expertise in the global footwear trade.

Finished Leather
Global Scenario: The Global import of Finished Leather declined from US$ 21813.33 million in 2006 to US$ 18799.30 million in 2010.India accounts for a share of 4.47% in the global finished leather imports A Statement showing global import of finished leather viz-a-vis Indias export and share during 2006 to 2010 is given below: (Value in Million US$) 2006 2007 2008 2009 2010 21813.33 23277.46 21659.93 15096.39 18799.30 724.00 807.19 673.37 627.95 841.13 3.32% 3.47% 3.11% 4.16% 4.47%

WORLD IMPORT INDIA'S EXPORT % SHARE OF INDIA

Major importing countries of Finished Leather 2006 vis--vis 2010 A comparison: (Value in Million US$) Country China Hong Kong Italy Germany Romania USA Spain Portugal Poland France Korea Rep Mexico Thailand 2006 4129.53 3665.32 2616.61 808.36 813.66 823.21 568.01 339.03 538.38 385.35 471.81 687.51 332.69 2010 3906.11 2768.61 2287.06 756.39 613.93 563.86 521.85 447.70 437.67 433.68 394.15 386.34 355.08

These 13 countries together accounts for a share of 73.79% in global finished leather import trade. Major Exporting Countries of Finished Leather 2006 vis--vis 2010 A comparison (Value in Million US$) Country 2006 Italy 4595.82

2010 4374.72

Nigeria Hong Kong Brazil Argentina USA India Korea Rep Indian Scenario:

78.26 3040.03 1875.32 883.10 1043.02 724.00 833.33

3037.42 2095.11 1736.50 990.88 864.93 841.13 802.75

India has amongst the largest livestock population in the world, providing a strong raw material base in goat, buffalo, cow and sheep leather. In terms of raw material availability in pieces, India is endowed with 12.55% of Bovine hides & skins, 12.29% of goat and kid skins, and 3.48% of Sheep and Lamb skins in the world. The range of finished leathers include classic finishes (polish, glazed, aniline, patent), matt surfaces (suedes, nubuck), nappa, burnished & oily leathers, crackled & distressed finishes etc Amongst the major producers of finished leather in the world, the Indian Leather Industry has a long tradition of supplying high quality leather for the global market. Indian tanning industry produces over 2 billion square feet of leather per annum. The Industry has the tanning capacity to fulfill 10% of global leather requirements. Major tanning clusters in the country are Chennai, Ambur, Ranipet, Kolkata, Kanpur, Jalandhar etc. There are approximately 2091 tanneries in the country 45% in Tamil Nadu, 26% in West Bengal, 18% in Uttar Pradesh. Livestock and Production Details: - INDIA 2005 2006 2007 2008 2009 279.71 277.51 275.29 273.11 270.10 62.85 63.55 64.27 64.99 65.33

Number of Bovine animals (million heads) Number of Sheep and Lambs (million heads) Number of Goat and kids (million heads) Production of Bovine hides and skins (million pcs) Production of sheepskins and lambskins (million pcs) Production of Goatskins and Kidskins (million pcs) Production of Light Leather from Bovine animals (mn. Sq.ft) Production of Light Leather from Sheep and Goats (million sq.ft)

124.90 125.18 125.45 125.73 126.39 27.7 23.4 23.3 24.4 25.7

31.5 72.0 650.4 610.7

31.9 72.0 647.2 652.5

32.2 72.2 632.4 665.0

32.6 72.3 648.8 655.0

32.8 72.8 NA NA

Source: FAO Statistics 2010 A Statement showing Indias export of finished leather 5 years 2006-07 724.00 2008-09 673.37 2009-10 627.95 2010-11 841.13 2011-12 1023.21

Source: DGCI& S Indias export of finished leather touched US$ 1023.21 million in 2011-12, holding a share of 21.02% in Indias total export of US$ 4868.71 mn. Indias Export of Finished Leather Major markets 5 years Major markets for Indian Finished Leather are Hong Kong with a share of 32.05%, Italy 16.24%, China 9.49%, Korea Rep 3.47%, Spain 3.35%, Germany 2.82%, Indonesia 2.41%, and Netherlands 1.77% (Value in Million US$) 2007-08 2008-09 2009-10 2010-11 2011-12 34.60 26.77 22.02 24.17 28.89 9.20 7.64 7.70 8.86 14.01 2.87 3.42 2.69 3.33 3.73 140.44 99.40 75.15 126.14 166.18 10.11 6.28 8.71 9.69 9.74 268.84 219.80 236.28 303.20 327.93 28.22 23.46 18.75 24.33 34.25 8.43 8.82 11.56 14.30 18.09 13.27 9.29 8.52 13.46 16.40 12.85 12.34 9.71 8.51 11.11 51.77 45.79 45.97 69.02 97.09 14.54 12.75 9.68 19.00 24.66 28.35 23.49 27.65 29.47 35.55 9.77 6.95 3.35 9.29 10.82

Countries Germany USA UK Italy France Hong Kong Spain Netherlands South Africa Portugal China Indonesia Korea Rep Russia Source: DGCI& S

Quantity-wise Export of finished Leather: (In Sq.ft)

2006-07 2007-08 2008-09 Goat Leather 195,075,053 189,808,286 183,597,321 Buff Leather 190,887,830 208,400,706 140,084,671 Cow Leather 85,982,053 90,130,049 68,674,431 Sheep Leather 40,338,691 44,781,694 42,046,463 Buff Calf Leather 33,749,851 28,818,943 16,800,963 Cow Calf Leather 18,600,194 16,408,130 13,815,558 Upholstery Leather 76,532,576 49,277,277 48,124,232 Sole Leather 1,676,351 844,768 1,017,259 Others (Leather) 7,680,926 15,836,925 8,496,713 Industrial Leather 217,647 213,910 3,080,196 Total 650,741,172 644,520,688 525,737,807 CLE Membership Records Region-wise Export of Finished Leather:

2009-10 2010-11 153,393,432 208,420,362 172,623,195 216,871,897 62,224,552 91,711,166 44,389,812 61,175,462 30,108,098 22,253,225 10,524,251 14,006,024 56,886,742 52,087,668 441,601 482,109 7,804,292 7,761,269 1,828,606 14,077,269 540,224,581 688,846,451

(In sq.ft) 2006-07 2007-08 2008-09 2009-10 2010-11 South 280,460586 277,947,631 237,888,805 236,368,814 314,521,791 Central 279,829,738 284,551,012 219,051,229 240,391,588 294,743,079 West 22,037,810 22,797,021 22,074,457 19,131,083 24,295,017 East 36,162,362 34,435,669 24,853,790 22,447,681 28,181,428 North 32,250676 24,789,355 21,869,527 21,885,414 27,105,135 Total 650,741,172 644,520,688 525,737,808 540,224,580 688,846,451 CLE Membership Records Councils Membership Strength of Finished Leather Panel 2006-07 2007-08 402 392 73 70 8 9 59 59 38 38 Total 581 568 2008-09 381 71 7 54 39 552 2009-10 460 79 6 52 45 642 2010-11 522 92 5 54 52 725

South Central West East North

CLE Membership Records Conclusion:

Strong infrastructures are in place for the leather tanning in the country. Eco-sustainable tanning processes are being followed in the tanning industry. The tanning industry is well supported by the presence of chemicals and auxiliaries industry. In the MODEUROP Congress, colours presented by the India are selected continuously, which reinforces the quality of Indias leather processing techniques. Indian finished leather finds the pride of place in the global fashion markets

Saddlery & Harness A Note


Global Scenario: The global imports of saddlery & harness had increased from US$ 919.75 mn in 2006 to US$ 1093.82 mn in 2010, growing at a cumulative annual growth rate of 4.42%. A Statement showing global import of saddlery & harness viz-a-vis Indias export and share during 2006 to 2010 is given below. (Value in Million US$) 2006 919.75 82.33 8.95% 2007 1100.90 106.18 9.64% 2008 1141.93 92.15 8.07% 2009 990.89 83.39 8.42% 2010 1093.82 87.92 8.04%

WORLD IMPORT INDIA'S EXPORT % SHARE OF INDIA

Major importing countries of Saddlery & Harness 2006 vis--vis 2010 A comparison (Value in Million US$)

Country USA Germany France UK Canada Japan Italy Netherlands Australia Sweden Spain Belgium Switzerland

2006 338.51 79.49 55.24 62.04 41.31 44.30 25.36 21.93 26.12 27.34 19.63 19.41 19.81

2010 348.40 108.33 70.98 70.37 53.42 49.31 35.57 31.60 30.25 29.42 26.78 25.61 23.56

These 13 countries together accounts for a share of 82.61% in global saddlery & harness import.

Major Exporting countries of Saddlery & Harness 2006 vis--vis 2010 A comparison (Value in Million US$) Country 2006 China 209.79 Germany 110.92 India 82.33 USA 43.56 Italy 33.33 France 35.54 UK 41.66 Taiwan 33.57

2010 270.70 135.65 87.92 51.53 44.75 43.38 36.82 36.08

Indian Scenario: Harness & Saddlery goods are being manufactured in Kanpur for more than last 100 years. The Saddlery manufacturing started in the 19th century at the British Indian Corporation in its Copper Alan branch in Kanpur and simultaneously the British Government started the Ordinance Equipment Factory at Kanpur to cater to the needs of the Army. The craft of making saddlery was imparted to the local artisans by the master saddlers brought from the UK, whose generations now formed the workforce of the present industry. By virtue of Kanpurs specialization in vegetable tanned buffalo hides, and due to the presence of trained manpower, this has become the most important centre for manufacture of saddlery goods in India. In fact, Kanpur is the only centre in India which produces the harness & saddlery goods. Almost all the units operating in Kanpur are 100% export-oriented. Indian Saddlery and Harness industry is now becoming globally competitive and brand dominated, awash with designs. India is positioned as the third largest exporter of Saddlery & Harness to the world, accounting for a share of 8.04% in the global saddlery import of US$ 1093.82 million. Indian Saddlery and Harness products are gaining an ever-increasing recognition in the highly competitive global saddlery & harness leather arena. Estimated production capacity of the Saddlery & Harness industry in India is 12.50 million pieces per annum. Technology, work craftsmanship, product quality are the hallmarks of the Indian Saddlery & Harness industry.

The major production clusters for Saddlery & Harness are Kanpur, Delhi etc The different categories of Saddlery & Harness exported from India are Saddles / Bridles, Harness and Other Saddlery items

A Statement showing Indias export of Saddlery & Harness 5 years (Value in Million US$) 2007-08 2008-09 2009-10 2010-11 2011-12

2006-07 82.33 106.18 92.15 83.39 87.92 107.60

Source: DGCI& S During 2011-12, Indias export of Saddlery & Harness touched US$ 107.60 million, accounting for a share of 2.21% in Indias total export from leather sector (US$ 4868.71 mn). Major Markets: The major markets of Indian Saddlery & Harness are: (Value in Million US$) 2007-08 Countries Germany USA UK Italy France Spain Netherlands Australia Denmark Canada Sweden Belgium Finland New Zealand 19.87 13.47 16.25 4.91 9.22 3.54 5.64 5.30 3.27 2.08 6.37 4.51 1.94 1.50 2008-09 19.67 11.31 9.08 3.43 8.54 3.07 6.12 4.48 3.13 2.45 5.93 4.67 1.91 1.05 2009-10 18.02 10.06 9.31 3.62 7.58 1.88 5.42 5.37 2.51 2.31 5.00 4.15 1.03 1.23 2010-11 18.45 11.38 8.64 3.73 6.31 2.40 5.65 5.88 2.95 2.55 5.65 6.15 1.25 1.12 2011-12 22.19 13.77 11.15 4.01 6.16 2.34 6.55 9.12 3.09 2.97 5.98 9.15 1.63 1.34

INDIAN LEATHER INDUSTRY

Size of the Industry

Indian leather industry has capacity to produce l776 million pairs; 112 million pairs of Shoe Uppers; Non-leather footwear - 960 million pairs Tamil Nadu - Chennai, Ambur, Ranipet, Vaniyambadi, Trichy, Dindigul ; West Bengal Kolkata ; Uttar Pradesh Kanpur, Agra & Noida ; Maharashtra Mumbai ; Punjab Jallandhar ; Karnataka Bangalore ; Andhra Pradesh - Hyderabad ; Haryana - Ambala, Gurgaon, Panchkula and Karnal; Delhi Has an annual turnover of approximately US$ 5,000,000 Indian Leather Industry currently is one among the top 8 industries for export revenue generation in India, holding 10% of the global raw material, and 2% of the global trade India produces approx 700 million pairs of leather footwear every year and accounts for an 18% share of the total Indian leather export.

Geographical distribution Output per annum Percentage in world market Market capitalization

History Over the years the Indian Leather Industry has undergone drastic change from being a mere exporter of raw materials in the early 60's and 70's to an exporter of finished, value-added leather products. The main reason behind this good transformation is the several policy initiatives taken by the government of India. Indian proactive government initiatives have yielded quick and improved results. Today the Indian leather industry has attained a prominent place in the Indian export and has made the industry one of the top 7 industries that earns foreign exchange for the country.

Since 1991 as India adopted the globalization and liberalized economic policies, the leather industry has flourished consistently in several ways and has contributed heavily to the Indian exchequer. Investing in Indian Leather Industry is advantageous because the industry is poised to grow further and achieve a major share in the global trading market.

The post liberalization era has opened up a great plethora of opportunities for the Indian Leather Industry. As the global players looking for new sourcing options while in addition to China, India stands to gain a bigger share of the global market. Leading brands from the US and Europe have plans to source leather and leather products from India. Indian Leather Industry currently is one among the top 8 industries for export revenue generation in India, holding 10% of the global raw material, and 2% of the global trade. India has become biggest livestock producer in the world, with the capacity of 1.8 billion square feet of leather production annually. Global Footwear of 13% production comprising of 16 billion pairs are made in India. India today produces 2065 million pairs of various categories of footwear. It exports 115 million pairs, thus having 95% of its production to meet its own domestic demand. Indian leather industry has the credit of being one of the oldest manufacturing industries catering to the global market from the 19th century. The age of the industry has linked it with social and organizational structure, and emerges as a complex one with elements of continuity and traditional structures. 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.
Brief Introduction Indian Leather Industry has developed to a large extent and is the second largest producer next to China. The industry is equipped mostly with a potential for employment generation, growth and exports, with the annual exports touching 2 billion USD. The industry experienced a positive metamorphosis from being a transporter of raw materials to an established exporter of value added and finished leather products. Currently it is on an ever increasing phase with optimum utilization of available raw materials and maximum returns from exports.

India has less than 3% share in the global trade in leather compared to China's 20%. Government of India realizing the growth potential of the leather industry has been making significant efforts to promote rapid advancement of the industry. On June 30, 2005, the Cabinet Committee on Economic Affairs (CCEA) decided to implement an Rs 2.9 billion scheme for the integrated development of the Indian Leather Industry. Under the scheme, existing tanneries will be modernized and new units will be set up for footwear, components and leather products. This scheme is expected to result in gains in terms of productivity, right-sizing of capacity, cost-cutting, and design-development. The leather and leather products industry is one of the oldest manufacturing industries

in India. The Indian leather industry provides employment to about 2.5 million people in the country and has an annual turnover of approximately US$ 5,000,000. Indian leather Industry occupies a prominent place in the Indian economy in view of its massive potential for employment, growth and exports. There has been an increasing emphasis on its planned development, aimed at optimum utilisation of available raw materials for maximising the returns, particularly from exports. The exports of leather and leather products gained momentum during the past two decades. There has been a phenomenal growth in exports from Rs.320 million in the year 1965-66 to Rs.69558 million in 1996-97. Today Indian Leather Industry has attained well merited recognition in international markets besides occupying a prominent place among the top seven foreign exchange earners of the country.
Market capitalization

Among all the industries the footwear industry in particular holds greater potential for investments in India. Today India produces approx 700 million pairs of leather footwear every year and accounts for an 18% share of the total Indian leather export.

Size of the industry

Indian Leather industry Today has capacity to produce l776 million pairs; 112 million pairs of Shoe Uppers; Non-leather footwear - 960 million pairs of non-leather footwear's which includes shoes made of rubber, moulded PVC and other material.
Total contribution to the economy/ sales

In 2009-10 with an annual turnover of over US$ 7 billion, the export of leather and leather products increased manifold over the past decades and touched US$ 3.40, with recording a cumulative annual growth rate of about 5.43% (5 years). Though India is the second largest producer of footwear and leather garments in the world, India accounts for a share of close to 3% in the global leather import trade of US$ 137 billion (2008). Leather Production centers for leather products are located in Tamil Nadu - Chennai, Ambur, Ranipet, Vaniyambadi, Trichy, Dindigul ; West Bengal Kolkata ; Uttar Pradesh

Kanpur, Agra & Noida ; Maharashtra Mumbai ; Punjab Jallandhar ; Karnataka Bangalore ; Andhra Pradesh - Hyderabad ; Haryana - Ambala, Gurgaon, Panchkula and Karnal; Delhi

Domestic and Exports Share

Main leather exports comprise of skins and hides such as cow, sheep nappa, goat skin and wet blue. Footwear, garments, handbags, leather gloves, purses, wallets, and briefcases are some of the products exported. Ranipet, Ambur, and Chennai in Tamil Nadu, Mumbai in Maharashtra, Kanpur in Uttar Pradesh, Agra, Delhi, Ludhiana, Sonepat, Pune, Kolkata, Calicut and Ernakulum are the major production centre in India. To develop the footwear industry the Indian Government has come up with numerous initiatives. Footwear Industry is now de-licensed and de-reserved, providing expansion of capacities on modern lines with state-of-the-art machinery. Government has also permitted 100% Foreign Direct Investment through the automatic route for the footwear sector. Nearly 75% of the leather products exported from India goes to EU and US.
Top leading Companies

Acme, Clarks, ColeHann, Deichmann, Nautica, Nike, Nunn Bush,Ecco, Elefanten, Hush Puppies, Double H, Florsheim, Gabor, Hasley, Justin, Marks & Spencer, Reebok, Salamander, Stacy Adams, Tony, Lama, Next, Bally are the prominent brands sourced from India. Lakhani, Metro, Action Red Tape, Bata, Liberty, Khadims, are some Indian brands that have a well established market in India. Aldo, Bally, Clarks, Ecco, Florshiem, Ferragammo, Hush Puppies, Lee cooper, Lloyd, Marks & Spencer, Nike, Nine West, New Balance, Reebok, Rockport, Stacy Adams are a few notable leather product brands sold in India. Top 10 leather exporters

Tata International Ltd. Florind Shoes Ltd. Punihani International Farida Shoes Ltd. Mirza Tanners Ltd. T. Abdul Wahid & Company Hindustan Lever Ltd. Super House Leather Ltd. RSL Industries Ltd. Presidency Kid Leather Ltd.

Employment opportunities

The Indian Leather industry categorizes under organized sectors and produces garments, leather merchandise besides tanning and finishing, with major manufacturing hubs in Chennai, Kanpur and Kolkata. Indian leather industry is set to boom with bright career opportunities in both technical and designing areas. The Indian corporates together with foreign multinationals in this industry have made it possible to look forward to exciting employment options. There are opportuntieis as designers, human resources and all the finance & marketing related jobs. The industry employs 2.5 million persons presently.
Latest developments

The Indian federal government has earmarked a Rs 4.5 billion grant to be made available to the industry to boost the country's leather industry over a span of five years, the fund availability is conditional upon the sector's attracting an annual investment of Rs 2.2 trillion. In 2002, the investments in the Indian Leather Industry stood at Rs 410 million. Footwear and their components account for about 25 %of India's total leather products exports. These two markets also offer Indian leather industry vast scope for exports of saddler and harness. India is the world's second largest producer of footwear; its production estimated over 700 million pairs per annum. At about US $ 300 million per year, footwear accounts for 18 percent share of total exports of leather exports. Products exported from India include dresses, shoes, casuals, moccasins, sports shoes, horacchis, sandals, ballerinas, and booties. Major production centres are at Chennai (Madras), Delhi, Agra, Kanpur, Mumbai (Bombay), Calcutta and Jalandhar. The government of India for it 200-2009 Foreign Trade Policy has identified the leather sector as a focus sector in view of its immense potential for export growth and generation of employment generation prospects. India is one of the best destinations in the world for investing in the leather industry because India is endowed with abundant raw materials required for the industry to grow. India has a huge population of cattle. India accounts for 21% of the world's cattle and buffalo and 11% of the world's goat and sheep population. The Government is also making efforts to implement various Special Focus Initiatives under the Foreign Trade Policy for the growth of leather sector. Leather industry is

aimed to augment the production, thereby to enhance export upto US$ 7.03 billion by 2013-14 which shall create additional employment opportunities for overall one million people. Indian industry
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