LEATHER INDUSTRYAt a GlancePrashant Kumar rayDesigner, FDDI, NOIDA

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To Know and understand Present

Market Position/Situation of the

Leather Goods Industry, first this is

important to know about the industry.

LEATHER INDUSTRYAt a Glance

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Following are the Facts about the Leather Industry

The Leather Industry holds a prominent place in the Indian economy. This

sector is known for its consistency in high export earnings and it is among

the top ten foreign exchange earners for the country.

The Leather industry is bestowed with an affluence of raw materials as

India is endowed with 21% of world cattle & buffalo and 11% of world goat

& sheep population. Added to this are the strengths of skilled manpower,

innovative technology, increasing industry compliance to international

environmental standards, and the dedicated support of the allied industries

The leather industry is an employment intensive sector, providing job to

about 2.5 million people, mostly from the weaker sections of the society.

Women employment is predominant in leather products sector with about

30% share.

Further following are the present strengths and emerging strengths of

overall Indian Leather Industry.

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Strengths of Indian leather sector

Own raw material source – 2 billion sq ft of leather

produced annually

Some varieties of goat / calf / sheep skins command

premium position

Strong and eco-sustainable tanning base

Modernized manufacturing units

Trained / skilled manpower at competitive wage levels

World-class institutional support for Design & Product

Development, HRD and R & D.        

Presence of support industries like leather chemicals and

finishing auxiliaries 

Presence in major markets – Long Europe experience

Strategic location in the Asian landmassLEATH

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Emerging Strengths of Indian leather sector

Design development initiatives by institutions and individuals

Continuous modernization and technology up gradation

Economic size of manufacturing units

Constant human resource development programme to

enhance productivity

Increasing use of quality components

Shorter prototype development time

Delivery compliance

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Emerging Strengths of Indian leather sector

Moving towards Leather Goods Accessories

Industry and their current market position

in India following are the facts and data.

India’s 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%.

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Importing Countries of Leather Goods & Gloves 2006 vis-à-vis 2010 – A comparison

Country 2006 2010

USA 3262.84 3246.51

Hong Kong 1493.35 2161.18

Japan 1570.15 1671.00

France 817.29 1083.13

Germany 717.48 901.65

UK 743.65 837.87

Italy 705.78 821.88

Korea Rep 203.70 516.59

China 171.03 493.72

Singapore 258.95 406.48

Spain 303.92 349.52

Canada 291.53 347.22

Switzerland 279.29 339.72

(Value in Million US$)

(Value in Million US$)

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Let's Have a look on Graph comparison

USA

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These 13 countries together accounts for a share of 77.43% in global leather goods

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Top Exporting countries of Leather Goods & Gloves 2006 vis-à-vis 2010 – A comparison

  (Value in Million US$)

 

Country 2006 2010

China 3102.04 4064.43

Italy 2708.19 3006.06

Hong Kong 1821.62 2507.79

France 2313.18 2412.82

India 706.28 814.91

Germany 401.73 506.30

USA 467.81 377.69

Singapore 96.48 325.04

Switzerland 223.94 267.31

Spain 232.72 238.20

Pakistan 238.82 235.33

(Value in Million US$)

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Let's Have a look on Graph comparison

China

Italy

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Scenario for Leather Goods

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, suit-cases, 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.

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Scenario for Leather Goods

Most of the units manufacturing leather goods are located

in Kolkata, Chennai, Mumbai, Kanpur, Bangalore and

Pondicherry.  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.

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India’s Export of Leather Goods & Accessories including Gloves – 5 years2007-08 2008-09 2009-10 2010-11 2011-12

800.46 873.44 757.02 855.78 1088.09

2007-08 2008-09 2009-10 2010-11 2011-120

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India’s export of Leather Goods & Accessories

including Gloves touched US$ 1088.09 million in

2011-12, holding a share of 22.35% in India’s

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%, and

Denmark 2.56%.

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India’s Export of Leather Goods & Accessories – Country-wise – 5 Years

Countries2007-08 2008-09 2009-10 2010-11 2011-12

Germany 122.65 132.08 117.75 135.34 171.96

USA 123.86 155.02 137.97 162.90 196.47

UK 133.92 125.77 123.08 131.74 137.20

Italy 56.96 67.51 44.82 46.57 66.99

France 36.07 45.04 38.90 48.16 59.68

Hong Kong 3.37 4.22 5.77 8.71 11.45

Spain 59.93 52.33 51.47 62.82 79.05

Russia 1.02 1.01 0.57 0.97 2.46

Netherlands 36.51 41.91 38.12 40.86 48.90

Australia 28.48 32.72 26.00 26.27 34.11

New Zealand

2.25 2.02 1.56 2.35 3.34

Denmark 15.20 17.02 16.16 18.91 27.80

Belgium 13.94 14.88 12.34 14.83 18.94

UAE 26.16 34.97 21.63 21.76 35.00

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India’s Export of Leather Goods & Accessories – Country-wise – 5 Years –

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(Value in Million US$)

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Quantity-wise Export of Leather Goods

 Article Goods 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 etc 4,623,278

Travel / Luggage ware 584,100

Handcrafted leather items 1,998,087

Sofa / Chair/ Car seat covers (upholstery) 100,867

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

(In Pcs.)

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Quantity-wise Export of Leather Goods2010-11Ladies Handbags and other bags

Wallets

Leather Belts, Caps & Ties

Purses

Pouches

Passport holders / Credit card holders etc

Travel / Luggage ware

Handcrafted leather items

Sofa / Chair/ Car seat covers (upholstery)

Diary Covers / Cheque Book Covers

Pet Accessories

Portfolio / Briefcases

Desktop materials

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Region-wise Export of Leather Goods in INDIA

 Region 2009-10 2010-11

Central 9,514,731 15,138,867

East 50,354,885 55,874,869

North 26,994,279 32,043,216

South 22,915,160 19,429,738

West 4,014,707 4,500,389

Total 113,793,762 126,987,079

(In Pcs.)

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Central East North South West0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

2009-102010-11

Region-wise Export of Leather Goods in INDIA

(In Pcs.)

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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 industry’s accelerated development and growth is

being aided by the ambitious capacity expansion &

modernization plans of private industry and the Indian

Government’s encouraging policy measures.

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Following Comparisons and data is based on latest research of the Industry.

As per officially notified DGCI& S monthly export data,

the export of Leather and Leather products for the period

April-January 2012-13 touched US$ 4070.21 million as

against the performance of US$ 4122.17 million in the

corresponding period of last year, recording a marginal

decline of 1.26%. In rupee terms, the export touched

Rs.221720.71 million during April-January 2012-13 as

against the previous year’s performance of Rs.196045.49

million registering a positive growth of 13.10%.

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A Statement showing the Product-wise Export performance during April-January 2012-13 vis-à-vis April-January 2011-12 is given below:

          CATEGORY

APRIL-JAN APRIL-JAN % VARIATION

  2011-12 2012-13  

FINISHED LEATHER

858.34 910.57 6.09%

LEATHER FOOTWEAR

1458.66 1338.11 -8.26%

FOOTWEAR COMPONENTS

245.04 200.49 -18.18%

LEATHER GARMENTS

501.70 477.36 -4.85%

LEATHER GOODS 902.59 967.06 7.14%

SADDLERY AND HARNESS

91.90 86.29 -6.10%

NON-LEATHER FOOTWEAR

63.95 90.32 41.23%

TOTAL 4122.17 4070.21 -1.26%(Value in Million US$)LE

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FINIS

HED LEA

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HER F

OOTWEA

R

FOOTW

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SADDLE

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NON-LEA

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FOOTW

EAR

0200400600800

1000120014001600

2011-122012-13

(Value in Million US$)

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Major Highlights

In Rupee Terms, export of  finished leather,

leather footwear, leather garments, leather goods &

accessories, saddler and harness and non-leather

footwear have show positive growth.

In Dollar Terms, export of finished leather, leather

goods and non-leather footwear have shown

positive growth. Declining trend is seen in export of

leather footwear, footwear components, leather

garments and saddler & harness

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Country-wise analysis

The major markets for Indian Leather & Leather Products are Germany

with a share of 12.60%,  UK 11.99%, USA 10.67%, Hong Kong 9.03%,

Italy 8.92%, France 6.24%, Spain 5.35%, Netherlands 3.94%, China

2.71%, UAE 2.36%, Belgium 1.90%,   Australia 1.50% and Denmark

1.80%

These 13 countries together accounts for nearly 79.01% of

India’s total leather& leather products export.

Export of leather & leather products to major markets like USA, UK,

Hong Kong, Australia, Denmark, Canada, Japan, China, UAE and Saudi

Arabia have shown positive export growth during April-January 2012-13.

Export of leather & leather products to major European markets like

Germany, Italy, France, Spain, Netherlands etc have shown declining

trend during April-January 2012.

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Trend in India’s Export of Leather & Leather Products to different countries during   April-January 2012-13 vis-à-vis April-January 2011-12

COUNTRY         APRIL-JAN % change

2011-12 2012-13  

GERMANY 635.19 513.01 -19.24%

U.S.A. 363.60 434.23 19.43%

U.K. 459.46 487.86 6.18%

ITALY 455.38 363.22 -20.24%

FRANCE 258.24 254.08 -1.61%

HONG KONG 296.50 367.40 23.91%

SPAIN 249.60 217.90 -12.70%

RUSSIA 28.28 20.27 -28.30%

NETHERLANDS 174.15 160.17 -8.03%

AUSTRALIA 54.36 60.95 12.12%

NEWZEALAND 5.49 5.47 -0.37%

DENMARK 61.27 73.29 19.63%

GREECE 8.33 5.51 -33.82%

CANADA 32.79 36.61 11.62%

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Trend in India’s Export of Leather & Leather Products to different countries during   April-January 2012-13 vis-à-vis April-January 2011-12

COUNTRY         APRIL-JAN % change

2011-12 2012-13  SWITZERLAND 28.35 24.48 -13.64%SWEDEN 38.76 36.33 -6.29%S. AFRICA 34.71 29.59 -14.74%AUSTRIA 32.98 26.43 -19.86%BELGIUM 97.42 77.31 -20.64%JAPAN 25.42 30.48 19.92%PORTUGAL 40.30 30.91 -23.31%CHINA 105.09 110.14 4.80%IRELAND 6.03 4.93 -18.25%U.A.E. 92.04 96.05 4.36%INDONESIA 21.42 23.75 10.91%KOREA REP. 33.01 40.04 21.32%FINLAND 18.19 17.40 -4.32%SAUDI ARABIA 33.64 33.65 0.02%OTHERS 432.18 488.75 13.09%TOTAL 4122.17 4070.21 -1.26%Source : DGCIS (Value in Million US$)

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Port-wise export performanceAs per the Port-wise / Region-wise compilation for the period April-January 2012-13, export of leather & leather products from Western Region and Eastern Region have shown positive export trends. Export from Southern Region, Northern Region and Central Regions have shown declining trend.

Region APRIL-JAN Share in APRIL-JAN Share in % Variation

  2011-12 Total Export 2012-13 Total Export  

Southern 1545.24 37.49% 1352.32 33.22% -12.48%

Western 870.33 21.11% 996.98 24.49% 14.55%

Eastern 530.45 12.87% 577.67 14.19% 8.90%

Northern 533.18 12.93% 516.86 12.70% -3.06%

Central 96.04 2.33% 0.39 0.01% 0.00%

Others 546.94 13.27% 625.99 15.38% 14.45%

Total 4122.17 100.00% 4070.21 100.00% -1.26%

Source : DGCIS (Value in Million US$)

Note: This is purely based on port-wise compilation and does not reflect the accurate regional performance: Source: DGCI& S

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Increasing Percentage of leather Goods from India drives our

thinking for the Future Demand and prospects for this Business

Thank You

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