Analysis of Leather Industry of Babgladesh

September 6, 2012 | Author: MD. Musawir Hasan | Posted in Market Ana!sis

Table of Contents
1 "hapter #ne: $%ntrodu&tion'
o 1.1 %ntrodu&tion
o 1.2 #b(e&ti)es:
1.2.1 *enera #b(e&ti)e:
1.2.2 Spe&i+i& #b(e&ti)es:
o 1., S&ope:
o 1.- Methodoo.!:
o 1./ 0imitations:
2 "hapter: 1wo $%ndustr! #)er)iew'
o 2.1 %ndustr! Pro+ies:
o 2.2 Present S&enario:
o 2., 0eadin. tanneries o+ 2an.adesh:
o 2.- Ma(or sour&e o+ hides 3 skins:
o 2./ %mportan&e and 4eatures o+ 0eather Se&tor in 2an.adesh:
o 2.6 *enera %n+ormation
2.6.1 0o&ation o+ 0eather 4irms56nits
2.6.2 #wnership Pattern o+ 0eather 4irms56nits
2.6., Markets +or the 0eather 4irms56nits
2.6.- Possession and #&&upan&!
2.6./ Assets, 7stabishment and 1urno)er o+ the 0eather 4irms56nits
o 2.8 9aw Materias
o 2.: Ma&hineries
, "hapter: 1hree $0abor 4or&e'
o ,.1 0abour in the 0eather Se&tor:
o ,.2 0abor: 0eather Pro&essin.:
- "hapter: 4our $"omparati)e Ana!sis'
o -.1 *ross )aue added o+ top ten industries
o -.2 1he produ&tion o+ 0eather *oods:
-.2.1 Saes and 7;ports o+ 0eather se&tor 7nterprises54irms
-.2.2 7;port o+ 0eather and 4ootwear
-.2., 7;port Market o+ 0eather and 4ootwear
o -., 0o&a %n)estment Pro(e&t:
o -.- 4orei.n %n)estment Pro(e&t: 9e.istration Statisti&s:
/ "hapter: 4i)e $4indin.s and 9e&ommendation'
o /.1 4indin.s:
/.1.1 Prospe&ts
/.1.2 Draw<ba&ks
o /.2 9e&ommendations:
o /., "on&usion :
6 Appendi;
o 6.1 7;panation o+ ke! points:
Chapter One: (Introduction)
Introduction
1he &ontribution o+ the industr! se&tor to 2an.adesh e&onom! has been on the in&rease. Amon. the
+i+teen se&tors identi+ied +or nationa in&ome =Leather Industry> is one o+ them. %ndustr! is the
ba&kbone upon whi&h the e&onom! o+ an! &ountr! pre)ais. 1he .rowth o+ e&onom!, the interna
de)eopment o+ a nation depends upon the de)eopment o+ industria se&tor. 1he &heap, reiabe, and
abundant abor a)aiabe in 2an.adesh is attra&ti)e to the word?s eadin. transnationa &orporations,
but the! ha)e been )er! sow to mo)e into the &ountr!, as the! +a&e re.uar industria unrest ed b!
radi&a trade unions, poor! de)eoped in+rastru&ture, red tape, and a )er! sma o&a market. As in
nei.hborin. %ndia, the 2an.adeshi .o)ernment promoted the idea o+ state<ed industriai@ation
&ombined with hea)! state in)o)ement in and state &ontro o+ enterprise a&ti)ities. 1his report is
prepared as a +u+iment o+ partia reAuirement o+ =%ndustria #r.ani@ation and Mana.ement o+
1e&hnoo.!> &ourse. %t has been authori@ed b! honorabe &ourse tea&her Pro+essor S!ed *oam Maoa
to make a report on =Analysis of Leather Industries of Bangladesh>.
Objectives:
General Objective:
1his stud! is a partia reAuirement o+ the &ourse on =Industrial Organization and Manageent of
Technology>. 1he .enera ob(e&ti)e o+ the stud! is to ana!@e the eather industr! o+ 2an.adesh.
Specific Objectives:
1he spe&i+i& ob(e&ti)es o+ the stud! are:
1o ana!@e the eather industr! o+ 2an.adesh.
1o ana!@e the di++erent owners, pa!ers and .o)ernment in+uen&e e;istin. in the
manu+a&turin. se&tor.
1o identi+! the &ontribution o+ eather industries aon. with its .rowth per+orman&e usin..
1o show a depi&t pi&ture o+ si@e wise +irm distribution and its rates in di++erent industria
se&tors
1o .i)e a &ear idea about the ownership wise +irm distribution o+ 2an.adesh.
1o identi+! probems sti pre)aiin. in the manu+a&turin. industr! se&tor.
1o show the trends o+ the de)eopment o+ eather industr!
1o show the &ontribution o+ eather industr! in the *DP o+ 2an.adesh
1o depi&t a o)era s&enario o+ eather industr!

Scope:
1his report primari! &on&erns the eather se&tor, its industr! si@e and ownership distribution. 2! its
)er! nature this report imits itse+ +rom .oin. into the atest data o+ di++erent aspe&ts reated to the
stud!. Here the &on&ern is main! the eather se&tor and the ana!sis o+ this se&tor aon. with )arious
&omparisons with other se&tors. Bith this )iew in mind, this report +o&uses on the issues ike si@e wise
+irm distribution, its ownership distribution, persons en.a.ed, .ross )aue added o+ this industria
se&tors.

Methodology:
%n+ormation +or this report is &oe&ted +rom se&ondar! sour&es. 1he se&ondar! sour&es o+ this report
are 2an.adesh 7&onomi& 9e)iew, "ensus o+ Manu+a&turin. %ndustries, PhD thesis repots, 9esear&h
report b! 1anner! #wners asso&iation, books and %nternet.

Limitations:
1he main imitation o+ the stud! is the time &onstraint. 1he time boundar! was not enou.h to &ondu&t
this t!pe o+ important stud! and aso the a&k o+ su++i&ient &o<operation o+ reated parties be&ause o+
business ne)ertheess their intention. As a resut, dire&t inter)iews o+ di++erent persons +rom di++erent
industries were not possibe. 4or their )iews, we had to depend on the nationa newspapers, internet,
2an.adesh 7&onomi& re)iew, report o+ 22S and thesis report.

Chapter: T!o (Industry O"er"ie!)
Industry Profiles:
1he +irst tanner! in 2an.adesh territor! was set up at Cara!an.an( b! 9P Saha sometime in the
1D-0s. %t was ater shi+ted to Ha@ariba. area o+ Dhaka, whi&h turned into a o&ation that now
a&&ommodates a ar.e number o+ tanner! units. 0eather %ndustr! de)eoped in 2an.adesh on a ar.e<
s&ae basis +rom the 1D80s. About D/E o+ eather and eather produ&ts o+ 2an.adesh are marketed
abroad, most! in the +orm o+ &rushed eather, +inished eather, eather .arments, and +ootwear. Most
eather and eather .oods .o to *erman!, %ta!, 4ran&e, Cetherands, Spain, 9ussia, 2ra@i, Fapan,
"hina, Sin.apore and 1aiwan. Gaue addition in these e;ports a)era.es :/E o&a and 1/E +orei.n.
About 100 modern tanner! units are now in operation in the industr!. 1hese are o&ated most! in the
Ha@ariba.h area o+ Dhaka &it!. %n 1DD:, the se&tor e;ported 18: miion sA +t o+ eather and earned
H160 miion. 1he &ountr!?s share in the word eather market is 2E. 1he e;port o+ +inished produ&ts
su&h as shoes, sippers, eather (a&kets, hand .o)es, ba.s, purses, waets, and bets aso earn a
si@eabe amount o+ +orei.n e;&han.e. 2an.adesh intends to in&rease its ran.e o+ eather produ&ts to
penetrate new market se.ments.
1he &ountr! is endowed with u;urious )e.etation en&oura.in. a ar.e i)esto&k popuation. 1he
Auait! o+ the raw hide and skin is reati)e! .ood, as barbed wire +en&in. that dama.e the skins o+
animas is not used in the natura +arms and +ieds. 2a&k .oatskin o+ kushtia is parti&uar! noted +or
its +ine.rain stru&ture and tensie stren.th. 1he tradition o+ humane &are o+ domesti& animas aso
&ontributes si.ni+i&ant! to keepin. the eather Auait! hi.h.
About -0E o+ the supp! o+ hide and skin &omes +rom animas sau.htered durin. the annua Musim
+esti)a o+ eid<u a@ha. %n addition to dai! &onsumption o+ meat, +esti)as, Musim weddin.s, and other
&eebrations !ied a substantia supp! o+ hide and skin. 1he tannin. industr! .ot a bi. boost +oowin.
the .o)ernment de&ision to promote more )aue addition in e;ports. 1he instaed &apa&it! +or &rust
eather produ&tion in&reased. At present, it is doube the domesti& supp! o+ raw hide and skin.
%n)estments are aso made in instain. new +inishin. &apa&it!. 1he trends en&oura.e more tanneries
to produ&e +inished eather on a &ommer&ia basis.
1he .o)ernment o+ 2an.adesh pro)ides a support to the eather industr! throu.h )arious steps,
in&udin. monitorin. the e;port market, e)auatin. the per+orman&e o+ the se&tor b! a permanent
pariamentar! &ommittee, and ibera bank &redit.
Durin. the 1DD0s, the e;port market +or 2an.adeshi eather .rew at an a)era.e o+ 10 I 1/E per
annum. 1he a)era.e !ear! e;ports a&&ounted +or H22/ miion. 4ine.rain eather o+ 2an.adesh
en(o!s pre+erentia demand in Bestern 7urope and Fapan. 0ow wa.e e)e and the ban on e;portin.
wet bue eather heped the industr! re&ei)e a new thrust in the &ountr!. 7n)ironmenta &on&erns
arisin. out o+ the hi.h &on&entration o+ produ&tion units in a sma area o+ the oder part o+ Dhaka &it!
are bein. addressed with pans +or their reo&ation outside the &it!.
0eather .oods produ&ers in 2an.adesh tend to be asso&iated on! with manu+a&turin. and e;portin..
1he! do not ha)e mu&h &ontro o)er downstream operations. Howe)er, the su&&ess o+ a number o+
2an.adeshi +irms in attra&tin. su&h brand names as Puma, Pi)oinos and Hu.o 2oss to sour&e +rom
this &ountr! pro)es that there is ampe s&ope +or the industr!?s upward mobiit!.
Present Scenario:
At present, there are about 180 tanner! units in 2an.adesh and the! use o&a! a)aiabe raw hides
and skins. #+ them 11- are ar.e and medium units $b! o&a standards' and are re.istered with the
Dire&torate o+ %ndustries. #thers are most! o+ sma and &otta.e t!pe and are not on the re.ister o+
the .o)ernment. About 1/0 tanner! units are o&ated at Ha@ariba. o+ Dhaka in on! /0 a&res o+ and
popuar! known as tanner! estate. A&&ordin. to the re&ords o+ the 2an.adesh 1anners Asso&iation,
about ,,000 workers are empo!ed in the tannin. industr!. 2esides, there are about 100 Auai+ied
te&hnoo.ists in&udin. +orei.n nationas who are workin. in di++erent tanneries. 1ota &apita in)ested
in the tanner! industr! is estimated at 1k 2./ biion, o+ whi&h .o)ernment5bank +inan&e is about 1k.
1.2 biion. About 1,/00 persons are in)o)ed in the pro&ess o+ &oe&tin. raw hides and skins and
makin. them a)aiabe at tanner! units. About 100 or.anisations import &hemi&as +or use in tanner!
industr!.
2an.adesh produ&es appro;imate! 100<1/0 miion sA +eet o+ raw hides and skins, about :/E o+
whi&h is e;ported in &rust and +inished +orm. 1he rest is used +or produ&in. eather .oods to &ater to
the domesti& market. 0eather is a traditiona e;port item o+ 2an.adesh. 2ut e;port earnin.s +rom this
se&tor &oud not indi&ate an! predi&tabe in&rease in the past. Sin&e the produ&tion and supp! o+
eather depend on the a)aiabiit! o+ i)esto&k and demand o+ the meat, the tota supp! o+ eather
&annot be in&reased in the short run. 1here+ore, the on! wa! o+ in&reasin. earnin.s +rom this se&tor is
the produ&tion and e;port o+ hi.her )aue eather produ&ts +or whi&h internationa demand is .rowin..
%nternationa market +or eather is hi.h! +u&tuatin., hen&e the earnin.s +rom its e;port. 6nti 2001,
annua e;port re&eipts +rom this se&tor remained beow taka one biion. Some pro(e&tions su..est
that i+ proper! or.ani@ed, this +i.ure &oud be raised to 1k / biion.
Leading tanneries of Bangladesh:
1here are some reputed tanneries o+ 2an.adesh that means eadin. tanneries who are produ&in. we
as we as internationa standards wet bue, &rust and +inished eather. Some o+ them are<
Dhaka 0eather
Ape; 1anner!
0e;&o
Jarim 0eather
Samata 1anner!
2a! 1anner!
Major source of hides s!ins:
1he prin&ipa sour&es o+ bo)ine hides are the meat markets in Corth Ameri&a, 7urope, Austraia, and
0atin Ameri&a. 1he +ormer %ndian sub&ontinent $%ndia, Pakistan and 2an.adesh' is aso a si.ni+i&ant
sour&e o+ &atte hides, but the Auait! is not up to internationa standards. Sheep skins are sour&ed
main! +rom 7urope, Cew Keaand, Austraia, %ran, and Sudan. *oat skins are suppied ar.e! b!
de)eopin. &ountries in&udin. 2an.adesh.
Table: Number of Animal Population in Bangladesh (thousand head)
Types 97 98 99 2000 2001 2002 2003 2004 2005est.
BovineAnimal 24816 24220 24480 24730 24830 24958 24882 25121 25460
SheepandLambs 1110 1121 1132 1143 1143 1150 1135 1139 1148
Goatsandids 33500 33800 34100 34400 34400 34612 34959 35389 35817
Sour!e: "A#$ %&&'
Ma#or $roducts:
1anner! trans+orms raw hides and skins into eather +or manu+a&turin. arti&es ike
shoe
upper
ba.
Suit&ase
2et
waet
Fa&ket
%n the past, eather pro&essin. was done manua! usin. &ertain indi.enous &hemi&as.
Importance and "eatures of Leather Sector in
Bangladesh:
0eather se&tor is per&ei)ed to be one o+ the important e&onomi& se&tors in 2an.adesh. As a sin.e
se&tor o+ the e&onom!, the se&tor &ontributes modest! to the &ountr!?s *DP. "ontribution o+ eather
se&tor $hide 3skin, eather and eather .oods, and +ootwear e;&ept rubber' to *DP is 0.,1E $at
&onstant pri&e' in 4L 200,. 1here was a de&inin. trend in this indi&ator +oowin. 1DD/. %t &ame down
to 0.,0E in 2000 +rom 0.,6E durin. 1DD/ and 1DD6.

Table(%)*: +ontribution of Leather Se!tor to G,P in Bangladesh
-ear Leather
andLeather
Goods
.ide
andS/in
"oot0ear
12!ept3ubber
Total 4 of Total
G,P
1992 792 3022 792 4606 0.33
1993 878 3066 878 4822 0.33
1994 1104 3104 1104 5312 0.35
1995 1282 3147 1282 5711 0.36
1996 1383 3189 1383 5955 0.36
1997 1471 3233 1471 6175 0.35
1998 976 3276 976 5228 0.28
1999 1529 3322 1529 6380 0.33
2000 1402 3368 1402 6172 0.33

%ource: 22S, 2000

An important +eature o+ the eather<manu+a&turin. se&tor in 2an.adesh is that it has been de)eoped
entire! b! pri)ate enterprises. A eather se&tor +irms are owned b! the pri)ate se&tor and a +ew units
beon. to mutinationa &ompanies. As o+ 4L2001, 2an.adesh produ&ed about 20.0miion sA. meters
o+ eather and eather .oods. 1he tota produ&tion o+ eather and eather .oods shows an in&reasin.
trend main! sin&e 1DD6<D8.0eather se&tor has some spe&i+i& +eatures, whi&h are uniAue to it. 1he
basi& raw materia o+ eather se&tor, the hide and skin are b! produ&ts o+ meat produ&tion. Due to the
poor Auait! o+ pro&essin., ie.a e;port to %ndia, poor te&hnoo.i&a base, inadeAuate +inan&in., ow
)aue addition and a&k o+ marketin. ski the se&tor is not +ourishin. in its +u potentia. Moreo)er,
the anima popuation o+ the &ount! is more or ess sta.nant o)er the period $tabe<1.2'.
Table 5 %)%: Number of Animal Population in Bangladesh(Thousand .ead)
Types 1990 1995 1996 1997 1998 1999 2000 2001 2002
BovineAnimal 24016 s24859 4433 24816 24220 24480 24730 24830 24830
Sheep
6Lambs
873 1070 1124 1158 1110 1121 1132 1143 1143
Goats 6ids 21031 30330 33312 34478 33500 33800 34100 34400 34400
%ource: 4A#, 200,

1he ar.est number o+ eather enterprises in 2an.adesh is sma empo!in. not more than /0 persons
+oowed in order b! medium and ar.e enterprises. A number o+ popuation are dire&t! and indire&t!
in)o)ed in the eather se&tor +irms. Dire&t empo!ment opportunities in&reased notab! durin. ate
1D50s. Durin. ear! 1DD0s about 16/00 persons were dire&t! empo!ed in the eather se&tor +irms.2
1he proportion o+ +emae empo!ees in tannin. +a&tories is ne.i.ibe and the! beon. )irtua! to the
&ate.or! o+ workers. Howe)er, about two<third o+ the tota abour +or&es empo!ed are women in the
eather +ootwear +a&tories and eather .arments. A ar.e number o+ workers ha)e no +orma trainin.
and adeAuate edu&ation on eather pro&essin., +inishin. or manu+a&turin.. 0eather<manu+a&turin.
enterprises produ&e a )ariet! o+ eather $e... wet<bue, &rust and 4inished', eather +ootwear and
eather .oods $e... shoes, ba.s, read!made eather .arments et&.'. Bet<bue and &rust eather
produ&ed is .enera! sod in the o&a market, whie &onsiderabe )oume o+ +inished eather is
e;ported abroad. Some enterprises, howe)er, produ&e a &ombination o+ wet<bue, &rust and +inished
eather.

4orei.n in)estment to the industria eather se&tor has been )er! imited. As upto Mar&h 200,, tota
+orei.n in)estment in the industria eather se&tor was H1,6.12 miion, whi&h is on! 1.,, per &ent o+
the tota +orei.n dire&t in)estment into the &ountr!,. As o+ 4ebruar! 200,, the in)estment on eather
produ&ts and +ootwear units in the 7PK were abo)e H-/ miion. %n 1D:0s, )irtua! the entire amount
o+ eather e;ports &omprised wet<bue. An important de)eopment in re&ent !ears has been the .rowth
o+ the produ&tion o+ &rust5+inished eather. At present, the ma(orit! e;ports are o+ +inished eather.
Girtua!, the e;ports o+ hide and skin stopped b! 1DD0. 2an.adesh &oud not a&hie)e notabe e;port
.rowth in the eather se&tor o)er time. 1he e;port earnin. o+ the eather .oods min&reased on!
mar.ina! in the 1DD0s. A&&ordin. to the Ministr! o+ 4inan&e data, e;port earnin.s +rom eather
manu+a&turin. .oods in&reased +rom H1-- miion to H2//.: miion in between 1DD1<D2 and 2001<02.
1he share o+ eather manu+a&turin. .oods in the tota industria e;ports de&ined +rom : per &ent to
si.ht! hi.her than - per &ent o)er the period. 1he e;port earnin.s e;perien&ed ne.ati)e .rowth
durin. 2001<02 as &ompared to the per)ious !ear. 1he on! notabe positi)e de)eopment has been
the in&rease in the .rowth o+ the +ootwear e;ports in the 1DD0s. 1he +ootwear e;port showed
remarkabe per+orman&e main! sin&e 1DD6<D8. 1he +ootwear e;ports in&reased to o)er H1D miion in
1DD,<D- +rom on! around H 2./ miion in 1DD0<D1, and mo)ed up to o)er H/1 miion in 1DDD<2000.
1he ma(or 6 importin. &ountries are %ta!, Fapan, Hon. Jon., Spain, *erman!, 6J and 6SA. As o+
2001, more than ,0E o+ the eather is e;ported to %ta! +oowed b! Hon. Jon. $26.D8E', Fapan
$8.88E'. Bith re.ard to the e;port market o+ +ootwear, Fapan is the ar.est importer o+ +ootwear +rom
2an.adesh +oowed b! 6J and %ta!. 1he eather se&tor is an important +orei.n e;&han.e earner +or
2an.adesh athou.h its reati)e share in the tota e;ports o+ the &ountr! has substantia! de&ined
+rom 10.1 E in 1D:15:2 and 12.6 E in 1D:65:8 to 6.6E in 1DD,5D-. 1he 0eather se&tor &ontributed
ess than /E to the tota e;port in 2000<01.

General Information
Location of Leather "irms#$nits
1he &ensus stud! is based on the +irms where at east 1/ or abo)e empo!ees are empo!ed. %t has
been +ound that there are as man! as 1,1 operationa +irms ha)in. more than 1/ empo!ees o+ whi&h
D6 are eather pro&essin. units, 26 are +ootwear manu+a&turin. units and 8 are eather .oods
produ&in. units.

Amost a eather units are o&ated in Dhaka $tabe</.1'. #+ the eather pro&essin. units about D/E
are &on&entrated in the Ha@ariba. area o+ Dhaka &it!. 4ootwear and eather .oods produ&in. units are
aso o&ated main! in Dhaka. #ther than Dhaka some eather units $main! +ootwear manu+a&turin.
+irms' ha)e been +ound in "hitta.on.. #+ the eather units /E are o&ated inside 7PK $at Dhaka and
"hitta.on.'.
O%nership Pattern of Leather "irms#$nits

Most eather +irms5units &o)ered in the &ensus stud! are under soe ownership or proprietorship.
7spe&ia!, about three<+ourth o+ the eather pro&essin. units are owned b! the soe owners. About
-2E o+ the +ootwear<manu+a&turin. units are pri)ate imited
&ompanies and another -2E are soe<ownership +irms. #+ the eather .oods produ&in. units, :0E are
either soe! owned or pri)ate imited &ompanies. #n! a insi.ni+i&ant proportion $ess than /E' o+ the
tota +irms o+ the eather se&tor are &on)erted in to pubi& imited &ompanies.

Most o+ the eather +irms are o+ o&a ori.in. #n! si.ht! hi.her than /E o+ the tota +irms are owned
b! the +orei.ners a o+ whi&h are eather pro&essin. units. A +ew +ootwear manu+a&turin. units o&ated
in the &ountr! are (oint )enture &ompanies. A eather .oods manu+a&turin. units o+ the &ountr! are
owned b! the o&a in)estors on!.

Mar!ets for the Leather "irms#$nits
More than two<third o+ the eather se&tor +irms5units are e;port oriented. 7spe&ia! o)er 86E o+ the
eather pro&essin. units or tanner! produ&es eather to e;port outside. About 20E o+ them supp! to
both o&a market and +orei.n market, and on! around -E supp! their entire produ&tion to the o&a
manu+a&turers or markets.
%n the +ootwear around 60E +irms produ&e on! to e;port. Another o)er ,8E o+ the +ootwear
manu+a&turin. units supp! their produ&e both in domesti& and +orei.n markets. A eather .oods
manu+a&turin. +irms are e;port oriented. As a whoe, on!
about 12E o+ the eather +irms5units supp! their entire produ&tion to the o&a market.

Possession and Occupancy
As the &ensus data indi&ate, +our<+i+th o+ the tota eather +irms $ha)in. empo!ees more than 1/' are
run or operated b! their respe&ti)e owners. 9emainin. 20E $not operated b! the owners' o+ the
eather +irm are either eased or handed o)er. A &onsiderabe
number o+ about ,:E o+ +ootwear manu+a&turin. units are eased. #+ the eather +irms operated b!
their owners, about three<+ourth $86.6E' en.a.e in produ&in. their own produ&t. #+ a the eather
units $eather pro&essin., +ootwear, and eather .oods', about 60E produ&e their own produ&ts and
around 20E in)o)e in sub&ontra&tin. or (ob<work. Some eather units in)o)e both in produ&in. own
produ&t and (ob<work. Amost a +ootwear units $more than D/E' are en.a.ed in the produ&tion o+
their own produ&ts.

&ssets' (stablishment and )urnover of the Leather "irms#$nits
As the &ensus data indi&ate, tota +i;ed assets $added )aue o+ and, buidin.,
ma&hiner!, 4urniture, and transportation' o+ the +irms operatin. in the eather se&tor are about 1k.
-,,2 miion. #+ these assets, about 68E are owned b! the eather pro&essin. units, and about 2DE
b! the +ootwear manu+a&turin. units. 1he &oe&ti)e annua turno)er o+ these eather +irms is 1k.
16D6: miion. #+ the tota annua turno)er o+ the eather +irms, the eather pro&essin. units
&ontributes about :0E and +ootwear manu+a&turin. units about 1:E.

*a% Materials
&a! Materials used by the Leather 'irs()nits
As the sur)e! data show, raw materias used b! the eather se&tor +irms are &oe&ted main! +rom the
o&a sour&es. 7;&ept +or an insi.ni+i&ant proportion, amost a raw materias o+ wet bue i.e. raw hides
are &oe&ted +rom the o&a sour&es. 9aw materias
+or "rust eather and +inished eather are wet<bue and &rust respe&ti)e!. #)er D/E o+ the raw
materias o+ &rust and +inished eather are sour&ed o&a!. #+ the broad &ate.ories o+ eather +irms,
+ootwear se&tor used hi.hest proportion o+ raw materias
$in&udes +inished eather, soe, adhesi)e et&.' +rom e;terna sour&es $around 20E'.

&a! Materials: Leather $rocessing
0eather pro&essin. units or tanneries produ&e wet<bue, &rust, and +inished eather. %n produ&in. wet<
bue and &rust, the +irms use raw hides and wet<bue as raw materias respe&ti)e!. "rust eather is
used as raw materias in produ&in. +inished eather.
&a! Materials for *et Blue (&a! +ides)
9aw hides used +or produ&in. wet<bue is main! &oe&ted +rom o&a sour&es. 0o&a!, raw hides are
&oe&ted main! +rom eather depot o&ated at Dhaka, "hitta.on., "omia, Justia, Catore and
9an.pur. #n! a )er! insi.ni+i&ant )oume o+ &ame hide is
imported +rom e;terna sour&es. South A+ri&a is the ma(or sour&e o+ &ame hide.

&a! Materials for Crust
As in &ase o+ wet bue, raw materias +or produ&in. &rust is main! &oe&ted +rom o&a sour&es main!
+rom Dhaka. #n! some Auantit! o+ wet<bue to prepare &rust eather is &oe&ted +rom "htta.on. and
Fessore. #n! a )er! insi.ni+i&ant )oume o+ &ame wet bue is imported +rom e;terna sour&es main!
+rom South A+ri&a and Austraia.

&a! Materials for 'inished Leather
"rust eather used +or produ&in. +inished eather is main! &oe&ted +rom o&a sour&es.#n! about /E
o+ the &ow &rust is imported +rom e;terna sour&es )aued 1k.,- miion $month! a)era.e'.

Cheicals and Accessories: Leather %ector
A number o+ &hemi&as are used in the eather pro&essin., +ootwear manu+a&turin. and eather .oods
manu+a&turin. units most o+ whi&h are +orei.n &hemi&as. Abo)e D/E $o+ the tota )aue' o+ the
&hemi&as used in the produ&tions o+ &rust and +inished eather are +orei.n. #)er 80E $o+ the tota
)aue' o+ the &hemi&as used b! the +ootwear manu+a&turin. are +orei.n made. Howe)er, eather
.oods manu+a&turin. units depends who! on o&a &hemi&as.


Man! a&&essories are used in the produ&tion o+ +ootwear and eather .oods. 1hese in&ude bukes, bet,
button, be&o tom et&. 2oth +ootwear and eather .oods manu+a&turin. units use +orei.n made
a&&essories +or their produ&ts. As a whoe, on! about 20E o+ the a&&essories used in the produ&tion o+
+ootwear and eather .oods are o&a! made.

Machineries
Machineries )sed in the Leather %ector
A number o+ ma&hines are used in the eather se&tor industries: eather pro&essin., eather +ootwear
and eather .oods. A hu.e number o+ ma&hines used in di++erent eather se&tor industries are &oe&ted
+rom e;terna sour&es.

Machineries: Leather 'oot!ear
%n +ootwear industr! .enera! more than one ma&hine5too are used in ea&h sta.e o+ produ&tion. Most
o+ these ma&hines are +orei.n made. %ta!, %ndia, *erman!, 1aiwan, and Jorea are the main sour&es
o+ ma&hineries used in the produ&tion o+ +ootwear.

Machineries: Leather $rocessing
6nder eather pro&essin., produ&tion wet<bue, &rust, and +inished eather reAuire di++erent t!pes o+
ma&hines at di++erent sta.es. Drums are e;tensi)e! used at di++erent e)es in the pro&essin. o+ wet<
bue. Pattin. ma&hine, d!er, hook dr!er, drum et&. are
some &ommon ma&hines5toos used in the pro&essin. o+ &rust eather. %n the produ&tion o+ +inished
eather dedustin. ma&hine, bu++in. ma&hine, spra!in. ma&hine et&. are &ommon! used. Most drums
used are o&a! made. How)er, most o+ the other ma&hineries used in the eather pro&essin. are
+orei.n made ma&hines. 1he main sour&es are %ndia, %ta! and *erman! $tabe<'

Chapter: Three (Labor 'orce)
Labour in the Leather Sector:
1he sur)e! data show that a tota o+ 1:0/D empo!ees are dire&t! empo!ed b! the eather se&tor
+irms5units ha)in. abo)e 1/ workin. +or&e $tabe<D.2'. #+ them, about 60E are skied $ha)in.
e;perien&es o+ more than , !ears', about 21E are semiskied $ha)in. e;perien&es o+ 1<, !ears',
around 1/E are unskied $ha)in. e;perien&e o+ ess than 1 !ear' and ess than -E are pro+essionas.

Most o+ the eather se&tor manpower5empo!ees $about :0E' are +u<time empo!ees, and most o+
them beon. to skied empo!ees &ate.or!. A notabe number o+ about 1:E o+ a the manpower are
seasona empo!ees. #+ the tota empo!ees about /DE are empo!ed in the eather pro&essin. units,
,8E in the +ootwear manu+a&turin. units, and remainin. -E are in eather .ood manu+a&turin. +irms.
Amon. the empo!ees about 8,E are mae. About D8E o+ the tota +emae empo!ees are +u<time
empo!ees,
howe)er, about 2:E o+ the mae empo!ees are either seasona or part<time empo!ees.

Labor: Leather Processing:
%n the eather pro&essin. units, most o+ the empo!ees are in)o)ed in the produ&tion o+ wet<bue and
&rust eather. 1he! a&&ounted +or o)er 80E o+ the tota persons empo!ed in the eather pro&essin.
units5+irms. Di)ision o+ abor at di++erent departments are there in the eather pro&essin. units,
howe)er, a +ew workers are in)o)ed in more than one departments in some +irms $as re)eaed in the
sur)e!'. 1hou.h the number o+ &ases is )er! +ew, there is data o)erappin.. #+ the tota empo!ees o+
eather pro&essin. units, about 6E are en.a.ed in +inishin. and pa&ka.in., and mana.ement
&omprised o)er DE.

Most empo!ees o+ the eather pro&essin. units are ha)in. more than three !ears e;perien&es
$skied'. About ,0E empo!ees in the mana.ement are pro+essionas. umber o+ pro+essiona in)o)ed
in the produ&tion o+ wet<bue, &rust, and +inished eather ran.es +rom 2./<- E o+ their respe&ti)e
number o+ empo!ees. As the norma trend o+ the o)era eather se&tor, most empo!ees are mae and
are +u time empo!ees. A.e distribution o+ the empo!ees as obser)ed show that most empo!ees
in)o)ed in the produ&tion o+ wet<bue, &rust, and +inished eather beon. to the a.e .roup o+ 1/<2D
!ears +oowed b! ,0<-- !ears. %n the mana.ement howe)er, o)er 60E empo!ees a.ed between ,0<
/D !ears. As &an be e;pe&ted pro+essionas are hi.h! paid as &ompared to the other empo!ees. #+
the +u time other empo!ees, skied empo!ees .et ma;imum pa!ment +oowed b! semiskied and
unskied. Co su&h trend is obser)ed in &ase o+ part<time empo!ees. Mae empo!ees draw better
saaries &ompared to the +emae empo!ees, and as e;pe&ted skied empo!ees in)o)ed in the
mana.ement .et better pa!ments $appendi; tabes'.

Chapter: 'our (Coparati"e
Analysis)
Gross value added of top ten industries
1he tota &ensus )aue added +or the manu+a&turin. industries was estimated at 1k. 2D0D11 miion in
2001<2002. *ross )aue added o+ 9ead!made .arments, Pharma&euti&a, 4ood 3 be)era.e, "otton
te;tie, Con<metai& minera produ&t, 0eather 3 eather produ&t, Booden +urniture, Paper, printin. 3
pubishin. , Fute te;tie and Soap 3 deter.ent were 1k. 6/2:2, /,1-6,,06/8,20002,
1/006,::18,:-/8, 8-D1, 821: and /,02 miion respe&ti)e!.
,ross "alue added of top ten industries ("alue in -.../)
Name Gross value added
1997-98 1999-2000 2001-2002
Readymade garments 39350586 56994590 65282477
Parma!eut"!als 8434412 9073565 53146102
#ood $ %everage 19762109 23435906 30657203
&otton te't"le 6470676 10013860 20001691
Non-metall"! m"neral
(rodu!t
5750683 8856723 15006158
Leather 6 leather
produ!t
*'%78&'9 *:&9%'*; 7 7$7*'$7%%
)ooden *urn"ture 264266 1722994 8 8+456+584
Pa(er (r"nt"ng $
(u%l"s"ng
6212528 9814705 491459
,ute te't"le 8578965 6006395 7 7+217+582
-oa( $ detergent 2059332 1923016 5+301+847
%ource: BB%0 1ha2a0 3..45

Amon. a the manu+a&turin. industries read!made .arment is on the top position and it has been
in&reasin. !ear to !ear. 2esides thou.h the ower produ&tion in the +ormer period, it has been raisin.
at a promisin. rate 4L 1DDD<2000.

$roduction of a#or industrial goods:
Produ!ts <nit %&&*(&% %&&%(&8 %&&8(&= %&&=(&9 %&&9(&'
Readymade
Garments
."ll"on /0 179381 188654 208604 221335 275205
Parma!eut"!als 000 /0 20122359 19469750 21245600 22307084 24490160
#ert"l"1er 000 mt 1753.53 2263.53 2198.73 2102.36 1926.67
&ement 000 mt 2514.30 2564.69 2594.89 2942.69 3210.76
,ute Goods 000 mt 352.00 320.00 285.00 275.45 255.22
Pa(er 000 mt 40.37 30.26 28.92 25.90 25.70
-oa( $
detergent
000 mt 42.44 45.98 48.50 52.74 57.26
Leather >illion
s?)meter
*:)89 *9)&9 :)*: *')88 7)*%
2everage ."ll"on d1.
%ottle
19.87 21.15 21.82 23.74 28.70
&otton 3arn ."ll"on 0g 65.58 69.84 84.57 105.57 120.90

%ource: 6conoic &e"ie! of Bangladesh0 3..75
)he production of Leather Goods:
1he trend o+ eather .oods produ&tion is not in same dire&tion in di++erent !ears. %n 4L 200-<0/ it has
in&reased to 16.,, miion sAuare meters that immediate! +a into :.12 miion sAuare metres in 4L
200/<06.
Sales and (+ports of Leather sector (nterprises#"irms
1ota e;port re&eipts o+ 2an.adesh durin. the !ears 200-<200/ amounted to tk. /0:,/.0- &rore. 1he
tota e;port earnin.s +rom eather and eather manu+a&tures in the !ear 200-<200/ is tk. 1608.6
&rore. As eather and eather manu+a&tures are a )er! important e;port item o+ 2an.adesh, in e)er!
!ear the tota produ&tion o+ eather and eather .oods and the e;port in&ome are tar.eted.

Table: 1ar.et and e;port per+orman&e o+ eather se&tor $in miion H'
+ommodity Target
for%&&*(&%
12port
performan!e
Target
for%&&%(&8
12port
performan!e
Target
for%&&8(&=
12port
performan!e
Target
for%&&=(&9
12port
performan!e
during%&&*(&% during%&&%(&8 during%&&8(&= during%&&=(&9
Leather 200.00 207.33 227.74 197.23 200.00 211.41 230.00 220.93
%ource: 7;port Promotion 2ureau.
Durin. Fanuar!<De&ember, 200-, eather se&tor +irms sod 1:D6// thousand sAuare +eet o+ eather,
168-/ pairs o+ +ootwear, and 86- thousand pie&es o+ eather .oods. "oe&ti)e saes o+ the eather
se&tor +irms stood at 1k. 1:62- miion durin. Fanuar!<De&ember, 200-. #+ the tota produ&ts o+ the
eather se&tor +irms, o)er 80 per&ent are sod outside the &ountr!.

0eather pro&essin. units e;ported most o+ their sod produ&ts that a&&ounted +or about o)er :0E o+
their tota saes re)enue durin. 200-. 4ootwear manu+a&turin. +irms e;ported about /0E o+ the
produ&ts $in terms o+ )oume', howe)er, saes re)enue a&&ounted +or on! about -0E o+ their tota
re)enue.
7ntire )oume o+ .oods produ&ed b! the eather .oods manu+a&turin. units5+irms was e;ported durin.
200-.

(+port of Leather and "oot%ear
2an.adesh earned 2/8.28 miion 6S doar +rom the e;port o+ eather and 102./6 miion 6S doar
+rom eather +ootwear in the !ear 200/52006. 1he tota e;port earnin. o+ the &ountr! +or the same
!ear stood at ,/D.:, biion doar. 1he trend o+ tota e;port o+ eather and +ootwear +or the past ha+ a
de&ade is shown in the +oowin. tabe.

Table: 68port of Leather and 'oot!ear (9alue in illion dollars)
-ear Total 12port Leather Total "oot0ear
e2port
Total(@)
2001-2002 207.33 48.49 255.82
2002-2003 191.23 46.72 237.95
2003-2004 211.41 68.30 279.71
2004-2005 220.93 87.55 308.48
2005-2006 257.27 102.56 359.83
%ource: A stud! o+ e;pansion pannin. o+ eather business $2:<0:<2006'

(+port Mar!et of Leather and "oot%ear
0eather and eather produ&ts are e;ported to di++erent &ountries o+ the wordM the ma(or importin.
&ountries are %ta!, *erman!, Spain, 4ran&e, 6.J, 6.S.A et&. %n the +oowin. tabe it is shown that, the
tota e;port o+ eather and eather manu+a&tures in&rease in the !ear 200-<200/ +rom tk.-6-.8 to
tk./1/., &rore.
Table:: Country !ise 68port of Leather ; leather anufactures (T25 in crore)
-ear
+ountries %&&=(
%&&9(*)
%&&8(
%&&=(%)
%&&%(
%&&8(8)
+hanges(*(%) +hanges(*(8)
4taly 275.2 255.8 217.3 19.4 38.5
Germany 92.2 48.8 26.4 45.4 20.4
-(a"n 44.2 53.1 41.1 -8.9 12.0
#ran!e 39.6 41.2 42.3 -41.2 -1.1
5.6. 26.9 28.0 19.2 -28.0 8.8
2elg"um 13.0 15.4 8.4 -2.4 7.0
Neterlands 12.1 14.9 7.2 -2.8 7.7
5.-.7 8.5 7.0 12.3 1.5 -5.3
&anada 3.6 0.5 0.5 3.1 0.0
/otal 515.3 464.7 374.7
%ource: 7;port promotion 2ureau<200-<200/
Local Investment Project:
9estration o+ o&a in)estment pro(e&ts .rew b! ,.-E durin. the +inan&ia !ear 200-<0/. 1ota
re.istration in this period was H 2,1D miion in 1-6D pro(e&ts. Ana!sis shows that ser)i&e, te;tie,
en.ineerin., et& are the eadin. se&toe o+ in)est ment aon.with tanner! 3eather.

"oreign Investment Project: *egistration Statistics:
9estration o+ +orei.n in)estment pro(e&ts $100E +orei.n and (oin)enture ' .rew b! D2.,DE durin. the
+inan&ia !ear 200-<0/. 1ota re.istration in this period was H ::/ miion in 120 pro(e&ts. Ana!sis
shows that ser)i&e, te;tie, en.ineerin., et& are the eadin. se&toe o+ in)est ment aon.with tanner! 3
rubber.

Chapter: 'i"e ('indings and
&ecoendation)
"indings:
2! ana!@in. the eather industries o+ 2an.adesh we +ind the +oowin. prospe&t and we aso +ind some
drawba&ks that are &reatin. hindran&e to de)eop our eather industr!:
Prospects
1he abor<intensi)e eather industr! is we suited to 2an.adesh ha)in. ow<&ost and abundant
abor.
2an.adesh has a domesti& supp! o+ .ood Auait! raw materia, as hides and skins are a b!<
produ&t o+ ar.e i)esto&k industr!.
AdeAuate .o)ernment support in the +orm o+ ta; hoida!s, dut! +ree imports o+ raw materias
and ma&hiner! +or e;port<oriented eather market
1he industr! a&ks domesti& te&hnoo.! and e;pertise and o&a support industries su&h as
&hemi&as are sti under<de)eoped.
Present .o)ernment is in the pro&ess o+ settin. up o+ separate 0eather Park reo&atin. the
e;istin. industr! sites to a we<or.ani@ed pa&e.
0eather e;porters ha)e been .i)en 1/E Dut! drawba&k o+ &ash in&enti)e.
0ow estabishment &ost.

,ra%-bac!s
0eather and eather<based produ&ts and +ootwear se&tors were not brou.ht into appropriate
rues and re.uations a+ter iberation
0a&k o+ in+rastru&tura and other ne&essar! +a&iities in &omparison with &ompetiti)e &ountries
0a&k o+ proper roes in the word market b! our 7mbass!
0a&k o+ bankin. +a&iities
Hi.her rate o+ interest o+ bank and other oans
Pro&rastination in .rantin. oans +or pro(e&t impementation
0a&k o+ ad)an&ed te&hnoo.!
Catura disaster
Poiti&a unrest, harta, strike, o&kout et&.
Stop e;port o+ wet bue eather +rom Fu! 01, 1DD0 without takin. an! spe&i+i& re.uations
9e&ession in word market 1win 1ower &oapse, atta&k o+ %raA et& &auses man! or.ani@ation
to shut down

*ecommendations:
*o)ernment shoud +ormuate appropriate rues and re.uations to support 0eather and
eather<based produ&ts and +ootwear se&tors.
1o ensure su++i&ient and &ontinuous power supp!.
1he! &an start (oint )enture business with other ma(or eather e;portin. &ountr! ike %ndia and
Fapan.
2! &oaboration with 76 and other de)eoped eather importin. &ountries the! &an import
ad)an&ed te&hnoo.!.
*o)ernment shoud take initiati)es to +ormuate appropriate eather poi&ies to support the
se&tor whi&h is ai.ned with the industria, e;port, and in)estment poi&! and spe&ia! stren.then
e<dipoma&!.
*o)ernment needed to arran.e some so+t oans +or the industr! to +i.ht a.ainst the &urrent
+inan&ia &risis.
*o)ernment must take initiati)e to enhan&e 93D and te&hnoo.! trans+er to the industr!.
*o)ernment shoud take initiati)es to enri&h the i)esto&k o+ the nation to ensure hi.her
a)aiabiit! o+ raw<inputs.
*o)ernment needed to arran.e some spe&ia +undin. and eather preser)ation +a&iities +or the
industr! in o&&asion o+ 7id<u<A@ha.
*o)ernment shoud take initiati)es to prote&t ather smu..in. to %ndia.
*o)ernment shoud pan and buit +a&iities to in&rease the )aue addition throu.h in&reases
produ&tion o+ +inished .oods.
*o)ernment has to ensure the H9 de)eopment in the se&tor.
*o)ernment has to redu&e the en)ironment poution e)e o+ the industr!.
.onclusion :
2an.adesh eather industr! is dominated substantia! b! the domesti& in)estment whi&h are most!
e;port<oriented. 1he eather in&udes some read!<made .arments, athou.h that aspe&t is &ontinued
main! to a sma e;port<trade in =%taian<make> .arments +or the 6S market. 4ootwear is more
important in terms o+ )aue addition. 1his is the +ast .rowin. se&tor +or eather produ&ts.
Present! 2an.adesh produ&es between 2 and , per&ent o+ the word?s eather market. Most o+ the
i)esto&k base +or this produ&tion is domesti& whi&h is estimated as &omprisin. 1.: per&ent o+ the
word?s &atte sto&k and ,.8 per&ent o+ the .oat sto&k. 1he hides and skins $a)era.e annua output is
1/0 miion sA.+t.' ha)e a .ood internationa reputation. 4orei.n dire&t in)estment in this se&tor aon.
with the produ&tion o+ tannin. &hemi&as appears to be hi.h! rewardin..
Ha)in. the basi& raw materias +or eather .oods as we as +or the produ&tion o+ eather shoe, a ar.e
poo o+ ow &ost but trainabe abor +or&e to.ether with tari++ &on&ession +a&iit! to ma(or importin.
&ountries under *SP &o)era.e, 2an.adesh &an be a potentia o++ shore o&ation +or eather and eather
produ&ts manu+a&turin. with ow &ost but hi.h Auait!. %n 200-<0/ tota e;port o+ eather .oods was
220.D, miion 6SH on the other hand it is 2/8.28 miion 6SH durin. 200/<06 4L.
Pro)ision o+ new! announ&ed in+rastru&tura +a&iities throu.h estabishment o+ an inte.rated 0eather
Park and simutaneous!, .rowth in the .oba demand, opportunities +or in)estin. in and settin. up
e;port<oriented eather industr! in 2an.adesh is de+inite! attra&ti)e. 4orei.n in)estors are we&ome
to &apitai@e on this opportunit!

Appendi8

(+planation of !ey points:
%2illed 6ployees: Borkers ha)in. workin. e;perien&es o+ three !ears and abo)e.
%ei:s2illed 6ployees: Borkers ha)in. workin. e;perien&es one to three !ears.
)ns2illed 6ployees: Borkers ha)in. workin. e;perien&es ess than one !ear.
$rofessional: Spe&iaist to per+orm a parti&uar (ob and are .enera! hi.h! paid.
%orting: %n the raw materia area the skins are preser)ed in sat, stored in &ontroed &oo rooms and
be+ore pro&essin., presorted +or Auait! and wei.ht.
%oa2ing: 1he skin is soaked to remo)e dirt and sat.An important step in the pro&ess o+ produ&in.
wet<bue eather. 7n@!mes are bein. used to a&&eerate the soakin. pro&ess b! pro)idin. more
e++i&ient reh!dration o+ the skin. 7n@!mes impro)e the openin. o+ the +ibre stru&ture, aowin. better
&hemi&a penetration.
'leshing: 4eshin. is done +or the remo)a o+ +esh and 4eshin. M5" ma&hine is used +or this purpose.
Liing: 1he ob(e&ti)e o+ 0imin. is to remo)e heir +rom the rawhide and skin. Drum, ime and water
are used +or imin.. 7n@!mes and &hemi&as are best used to.ether in the unhairin. pro&ess, where
the en@!me either assists a &hemi&a pro&ess or a &hemi&a assists an en@!me pro&ess.
1e:liing: A+ter imin., the ime or other akai in the skin is no on.er reAuired, and in most &ases it
has detrimenta e++e&t on subseAuent tanna.e. Bith &hrome tannin. it .i)es a hard .reen in+e;ibe
eather and pre)ents proper tanna.e, whist with )e.etabe tannin. it aso sows down or redu&es
tanna.e and .i)es a dark &oor.
$ic2ling: A preiminar! pro&ess +or preparin. hides and skins +or tannin., ar.e! b! ad(ustin. the pH
with a&id and &ontroin. the swein. with sat. %t is aso use as stabe wa! o+ hodin. materia, a+ter
unhairin., +or transport between pants and &ountries and +or tradin..
%aing: Pro&ess o+ remo)in. e;&ess water to ha)e smooth eather. Sammin. and Pattin.
ma&hines are
%plitting: %n order to a&hie)e an e)en spe&i+ied thi&kness the eather is redu&ed in substan&e. 1he
resutin. spit<eather &an than be pro&essed +urther as suede.
%2i"ing: 1he .rain eather is brou.ht to an e)en thi&kness. %rre.uarities are
remo)ed +rom the re)erse side and the eather is separated into &oour<bat&hes
1rying: 1wo methods are used to dr! eather. 1he )a&uum pro&ess durin. whi&h moisture is remo)ed
b! su&tion and the han.in. pro&ess, when eather is hun. and taken throu.h o)ens.
%ta2ing: 4oowin. dr!in. the eather is me&hani&a! staked in order to so+ten it. 4urther pro&esses
take pa&e in preparation +or +inishin..
'inishing: Here the eather is .i)en its +ina sur+a&e treatment and ook. 1hrou.h pro&esses o+ base
&oat, &oourin., embossin., ironin. the eather be&omes, dependin. on the demands o+ +ashion, matt
or shin!, two<tone or uni<&ooured, smooth or .rained.