Leather Goods Industry

Manisha MisraHEC MBA Class of 2010

Agenda

o Company overviewo Market overviewo Competitors o Drivers of Growtho Recommendations

Company OverviewCentre Technique du Cuir

Quality assurance, consultancy and training services for leather goods and footwear industry

Over 100 years of accumulated expertise

Subsidiaries in 13 countries and inspection offices over 4 continents

Comprehensive and ever expanding R&D program and competitive intelligence system

Market Overview

Leather industry is concentrated mostly in the cities of New Delhi, Agra and Chennai

India - 3% of international share in leather trade

China - 17% extra market share.

Source: http://blog.mapsofindia.com/category/india-business/

A significant growth trajectory for production of tanned and dressed leather in India

Source: Production of Tanned and Dressed Leather, Luggage, Handbags, Saddlery, Harness and Footwear, ISIC Classification 19: Euromonitor International from national statistics/UN/OECD

Footwear sales is also rising to new highs in Indian market

Footwear market value grows 11% in 2008 to reach a value of Rs 61.8 billion

Women’s footwear value grows highest at 15.1% year on year

In 2010, the footwear market value is expected to grow at CAGR of 12.2%

Source: Euromonitor Report – “Footwear - India”, Oct 2009

Demands for Leather

Leather has its dedicated trade fairs all over in main cities of India

Competitors for CTC

Main Indian players in technological and design development of leather

Central Leather Research Institute, Chennai

Footwear Design & Development Institute, NOIDA

National Institute of Fashion Technology, New Delhi

Source: Euromonitor Report – “Footwear - India”, Oct 2009

Drivers of Growth

Leather production and processing very likely to grow further in India

Leading footwear players like Adidas, Puma and Nike are likely to channel a part of their purchase and production from China to India.

India has one of the largest raw material for leather – with the largest bovine population (19%) and third largest sheep and lambs population (share of 6%)

Source: 1. Euromonitor Report – “Footwear - India”, Oct 20092. Exim Bank : Research Brief No. 22 March 2006

New legislations and regulations are likely to drive R&D efforts for eco-leather

European Union’s directive on End of Life Vehicles (2000) are getting adopted worldwide as a standard for Chromium free leather

Consultancy and audit services would be required even more for norms adherence, growing the market further for CTC

Source: www.unctad.org

Recommendations

Make the most of the good time for leather industry in India

CTC can fill in the gap for: Lack of consultancy firms/agencies/institutions in

India who can provide assistance. Lack of International environmental product

standards association in India.

A few words about myself

1979

1998

2004

2010

EARLY CHILDHOOD

EDUCATION – UNDER GRADUATE &

POST GRADUATE

PROFESIONAL EXPERIENCE

MBA

Born and raised in a small town in India Excellent academics Avid debater and theatre artist

1998 – 2001: Bachelor in Computer Applications

All rounder in university Professional street theatre artist

2001 – 2004: Master in Computer Applications

Top 10 all over India in advanced computer science test organized by Government of India Prestigious Internships

A few words about myself

1979

1998

2004

2010

EARLY CHILDHOOD

EDUCATION – UNDER GRADUATE &

POST GRADUATE

PROFESIONAL EXPERIENCE

MBA

2+ years of experience in Media Business Development 4+ years of experience in IT Consulting India, Middle East Received Client Satisfaction Awards

2009 – 2010: MBA, HEC Paris Consulting Internship with Thales (HQ, France) Marketing Internship with Marico (Mumbai, India) Student representative Vice-President – Marketing Club

Thank you for your time