EXPORT

OF
Group Members Roll No.

Pallavi Bhandarkar 04
Rutuja Joshi 10
Afsha Ratansi 19
Nupur Saraf 20
Ritika Shetty 24
INTRODUCTION
HISTORY
Process
Barriers
Strategies
Tariffs
Subsidies
Export and free trade

Export strategy
 ADVANTAGES
AND
DISADVATAGES
OF EXPORTING
Indian Leather Industry Overview

Indian Scenerio
Export Potential Of
Leather Sector
The Indian leather industry has made
significant progresses during the past
two decades due to strong raw-material
base and large reservoir of traditionally
skilled and competitive labor force.
Export Of Leather
Leather goods production capacity is estimated to
be 63 million pieces annually.  

The different types of Leather Goods and

accessories are manufactured in India

Most of the units manufacturing leather goods are

located in Kolkata, Chennai, Mumbai, Kanpur,
Bangalore and Pondicherry. 
Raw Material Supplies For
Leather Industry
There exists a large raw material base. There is a
population of 194 million cattle, 70 million buffaloes and
95 million goats.
According to the latest census, India ranks first among
the major livestock holding countries in the world.
In respect of sheep with 48 million sheep, it claims the
sixth position.
These four species provide the basic raw material for the
leather industry.  
Top Ten Indian 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.
Indian Leather Footwear Industry

Indian Leather Goods Industry

Indian Leather Garments
Industry
Prominence in the Indian leather sector.
Entered the world market only in the mid-
eighties with exports of Rs. 15 crores in 1997-
98, account for about Rs. 1530 crore in 1997-
98.
Major export destination of leather
garments from India is Germany.
Market share of about 20%.
Leather Gloves
India produces about 52 million pairs of industrial
gloves annually.
India’s share in global leather gloves import
during 2008 was 9.52%.

India’s export of leather gloves increased from

US$ 118.77 million in 2004 to US$ 232.05 million
in 2008, growing at a CAGR of 18.22%. 
Indian Leather Gloves are engineered to provide
long lasting comfort and protection. 
Export Licensing
De-reservation of 11 items in leather sector.

Non-small scale units can manufacture

these items after obtaining industrial license,
which is granted subject to an export
obligation of 50%of the production in each
year.
National Leather Development
Program (NLDP)
A UNDP assisted National Leather Development
Programme (NLDP Phase-I)has been executed by the
Department from1992 to 1998.

UNDP contribution - US $ 17 million.

Government of India funding - US $ 11.065 million.

Integrated development.

The present UNDP allocation towards the SIDE-NLDP

is US$ 7.15 million.
Problems And Constraints
In Leather Garment
Industry
Unplanned growth & set-up
Low average unit value realization
Shortage of properly trained technical manpower
Non-professional attitude of the entrepreneurs
Absence of well-developed infrastructural
Financial constraints and non-professional
financial management
Unprofessional marketing efforts and management
Non-availability of adequate quality raw materials
Global Import And
India’s Share
Global import of Leather Goods including Gloves
increased from US$ 10786.59 million in 2004 to
US$ 18034.94 million in 2008
During 2008, the India’s share in the global
leather goods & accessories import is 4.84%.
The Global import of Leather Goods including
Gloves increased from US$8020.61 million in 2002
to US$13675.50 million in 2006
 India’s share remains stagnant at 5.16%.
 Source : World Statistics, ITC, Geneva
India's export
2002 2003 2004 2005 2006

Global 8020.61 9021.89 10773.0 12136.2 13675.5

import 1 5 0

India's 425.40 539.21 585.72 660.17 706.28

export

% Share 5.30% 5.98% 5.44% 5.44% 5.16%

of India
 Country-wise India's
Export Of Leather And
Leather Products During
The Last Six Years
COUNTRY 95-96 96-97 97-98 98-99 99-00 00-01

U.S.A. 295.62 298.75 251.40 252.71 258.24 343.2

1
Germa 400.38 362.88 363.41 364.19 293.59 308.13
ny
U.K. 200.93 204.92 219.26 235.79 266.29 271.35

Italy 221.26 182.99 221.53 197.16 165.47 241.06

Spain 50.75 46.97 54.96 69.23 66.72 100.88

Hong 59.46 59.07 53.93 53.26 55.22 98.42

Kong
France 88.73 72.34 79.01 79.77 84.36 90.84
Netherla 38.65 38.48 43.83 49.78 44.17 55.82
nds

Portugal 23.70 20.21 31.91 29.39 24.41 37.44

Russia 47.58 30.22 50.99 25.19 27.97 31.49

Denmark 27.81 23.34 21.73 18.82 28.30 28.77

Australia 40.74 36.91 36.83 35.39 31.84 28.44

Sweden 12.70 11.20 12.76 15.40 19.79 25.47

Canada 22.84 19.63 21.69 18.77 21.42 26.71

Export To Different Countries
Direction Wise
Its important to studythe export direction wise (in
accordance to sea rout transport ) the pie graph below
explains the same
 The Graph Below Denotes The
Income Earned By India In Previous
Five Years:
 Export Of Leather And
Leather Products From
India April-march 1999-
2000 VIS-À-VIS April-
march - 2000-01
CATEGORY APRIL-MAR APRIL-MAR %
1999-2000 2000-01 VARIATION
FINISHED
LEATHER
239.82 381.86 59.23%
LEATHER
FOOTWEAR
377.39 384.47 1.88%
FOOTWEAR
COMPONENTS
215.09 238.06 10.67%
LEATHER
GARMENTS
347.28 460.55 32.62%
LEATHER GOODS
376.52 443.83 17.87%
SADDLERY AND
HARNESS
34.11 42.72 25.24%
NON-LEATHER
FOOTWEAR
14.12 19.50 38.09%
TOTAL
1604.35 1970.98 22.85%
US $ rate
43.3327 45.6844
Strategies For Indian Leather
Sector
Shifting of Manufacturing Base
Government Support
Strong Production Base
Investment by Large Corporate
New Markets
New Trends
Diverse Marketing Techniques
Enabling Infrastructure
Fairs and Exhibitions
Training Facilities
 Strength and weakness of
leather goods industry in India
Major Issues Affecting The
Sector
Environmental Issues

Impact of PETA

WTO Related Matters

Cost Escalation

Chinese Competition
Conclusion