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The objectives of the Institute:

To facilitate the Development and transfer of leather and leather products in-
dustries technologies, to enable the industries to become competitive and
beget rapid development

The Leather Industry Development Institute

Vision
“Enabling the Ethiopian leather Industry to be competitive in the world mar-
ket”

Mission
To make Ethiopian, a higher beneficiary from the leather sector by providing
the Investment, Production and Marketing Services through rapid, trans-
parent and sustainable development.

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12
 HUA JIAN DECIDES TO INVEST
IN ETHIOPIA
The leather sector of Ethiopia is now focused on value HUA JIAN has long term plan spanning 10 years
additions of existing basket & moving towards the horizon targeting 10 billion annual turnover. This
augmentation of leather products. There has been stra- will create employment opportunity for approxi-
tegic shift to enhance mately 100,000 people of
the reach to the mar- the nation. In coming 3 to 5
ket. In order to con- years it has planned to set
vert Ethiopia in to up of special economic zone
long term sustainable (SEZ) with product segmen-
manufacturing base, tation of leather shoe, syn-
the government has thetic sloes, leather goods. It
placed very prudent is to export US $500 million
investment policy .All exports for the country. The
concerned stake- company has also planned to
holders and senior produce 35,000 pairs of shoe
Governmental offi- per day after 5 years.
cials are promoting
investment to achieve Presently, the company has
this objective. already established and
launched a footwear unit with
Following the invita- the capacity of 3000 pair /day
tion made by H.E at Dukem industrial zone, in a
Prime Minister Meles Zenaw; HUA JIAN, one of the rental premise and expected to commence export
world’s biggest classic shoe manufacturing Chinese activity shortly.
company has decided to invest in Ethiopia.

Leather Footwear and

the Environment
By Hailekiros Debesay
1.Review of the Footwear Industry
The footwear industry is a diverse manufacturing sector which employs a wide variety of materials to make products
ranging from different types and styles of footwear to more specialized shoes. Leather, synthetic materials, rubber
and textile materials are amongst the basic materials most commonly used in shoe manufacture; each material has its
own specific characteristics. Approximately there are at an average 40 different materials which can be used in the
manufacturing of a shoe. However, the common material composition of a typical shoe is presented in Table 1.
Table 1. Materials composition of a typical shoe.

Footwear Materials Percentage (%wt)

Leather 25
Polyurethane (PU) 17
Thermoplastic Rubber (TR) 16
Ethylene Vinyl Acetate (EVA) 14
Poly (Vinyl Chloride) (PVC) 8
Rubber 7
Other (adhesives, metals, etc.) 7
Textiles and Fabrics 6

13
 2.General environmental concerns

Unsustainable consumption and production patterns in
the developed world have led to an increased genera-
tion of waste over many decades. The footwear indus-
try over the last years has placed significant effort in
eliminating the use of hazardous materials during the
production phase in the developed coun-
tries..Moreover, the useful life of shoes is relatively
short and progressively decreasing as a result of rapid
market changes and consumer fashion trends. This cre-
ates a large waste stream of worn and discarded shoes
at the time their functional life has ended, and most of
them are being disposed in landfills and sold as second
hand shoes to developing countries. Producer-
responsibility issues and forthcoming environmental
legislations, as well as increasingly environmental con-
sumer demands, are expected to challenge the way the
footwear industry deals with its end of life products.

3. How the footwear industry pollutes the environment?

3.1 Use of Hazardous materials

There are many environmental pollution problems
linked with the footwear industry. These occur both in
the production of raw materials and with the footwear
manufacturing itself. However, until recently the only
major environmental concerns for the producers have
been the use of hazardous materials and chemicals in
shoes, and the air, water and solid waste emissions
generated during the shoe production process. In fact,
the most serious risks to the environment are to be
found with suppliers of semi-finished products and
components such as leather, which is produced by tan-
ning. Especially, the use of chromium as tanning agent,

Table 2: Major Pollutants in the Footwear Industry

Footwear Materials Environmental Pollutants

Leather Chromium, Aldehydes , Solvents
Synthetic Materials Solvents, VOCs
Textiles Process Chemicals, Biocides
Rubbers Rubber Fume
PVC Vinyl Chloride Monomer
Cadmium, Plasticisers
Polystyrene Styrene Monomer
Polyurethane Isocyanates, (CFCs)
Adhesives Solvents, VOCs, Chlorine

14
 which is highly toxic and a suspected carcinogen, ally sold to companies and individuals in developing
has been a major few decades. The use of PVC countries,
also, has been reduced in the footwear manufactur-
ing sector because it is claimed that when burned at 3.4 Conclusion and Possible recommendations
low temperatures, it has the potential to form or- There will always be some waste that cannot be prevented
gano-chlorine substances, which are extremely at source and so need to be treated at the end of its func-
toxic both for the environment and for human be- tional life. Therefore, local and national authorities, gov-
ings. Finally, solvents and other volatile organic ernmental agencies, manufacturers and the general public
compounds (VOCs), used in synthetic upper mate- have come to recognize the importance of controlling
rials, leather finishing, adhesives and cleaners, are waste at source, as total waste elimination is not possible.
of major importance for the footwear industry since 3.5 Eco – Label scheme/production of environmental
they contribute to the formation of ground-level friendly shoes
ozone, an air pollutant harmful to human health as Environmental Protection Authority has to promote foot-
well as plant life. Table 1 presents some if the ma- wear products which have lower environmental impacts
jor pollutants that linked with footwear materials by establishing Eco label scheme as marketing and public-
and their processes. ity tool for environmental friendly shoes in collaboration
3.2. Dispose to landfills with Ministry of Industry – Leather Industry Development
However, the major environmental challenge that foot- institute. To be able to use the footwear eco-label, some
wear industry is currently facing, is the enormous determined ecological criteria must be fulfilled. These
amount of waste generated at the end-of-life phase. criteria aim, in particular, at limiting the levels of toxic
Some 12 billion pairs of shoes produced worldwide residues, limiting the emissions of VOCs and promoting a
every year, with most of them being disposed in land- more durable footwear product.
fills. Landfill sites can result in serious environmental
pollution of groundwater and rivers, due to landfill
leachate.
3.3 . Distribution of worn shoes to developing
countries
Another form of reuse activity in the footwear sector is
the collection and distribution of worn or unwanted
shoes to developing countries. Reuse schemes are
mainly supported by charity organizations, local au-
thorities and municipalities such as the Salvation
Army Trading Company Ltd. (SATCOL), Oxfam and
others. In the UK, SATCOL alone with its 2,300
banks, door-to-door collections and donations, has
managed to collect around 971 tonnes of worn or un-
wanted shoes during the year 2000-2001 . These shoes
are usually deposited in specially designed collection
units, the so-called ‘shoe banks’, based at recycling
stations, schools, charity shops and other participating
outlets. The shoes are collected and sorted for suitabil-
ity. Shoes that can be refurbished and reused are usu-

15
 Modjo Leather City Common Effluent
Treatment Plant MLC-CETP Project
By Leather Industry Development Institute (LIDI) - Environmental Team

Ethiopia follows green economic development pol- ies have the prescribed equipment to do primary
icy, the industrial pollution control standards in the treatment but still fail to operate them properly or at
country are based on the limits set by Ethiopian all. Much of the reason for this is the problem of high
Environmental Protection Authority (EEPA). total capital and operating cost.

The tanneries are classified under the category “Red

In order to mitigate the environmental Impacts due
–The most polluting industries” .The waste genera-
to discharge of untreated effluents, the National
tion by the tanneries is important concern in most
Export Steering Committee has directed Ministry
part of the world including Ethiopia. Even though the
of Industry to build common effluent treatment
Ethiopian environmental regulations for the tan-
plant (CETP). Based on the direction, steering
ning industry are stringent, however , pollution load
committee and technical team each consisting nine
coming from the tanneries is still heavy, and it is a
members from different stakeholders (institutions,
problem both for the people living nearby, and for the
governmental and nongovernmental organizations)
river and ground water. Though most of the tanner-

16
 were established jointly by the Ministry of Industry and Leather Industry development institute to work
on implementation of Common Effluent Treatment Plant (CETP) Project at Modjo Town for tanneries-
The Project site is located in Oromia regional state, East Shewa Zone, Modjo town, about 72km South
East of Addis Ababa. Currently, there are fourteen tanneries in the Modjo town making the town a place
where the biggest clusters of tanneries are found in the country.

Common effluent treatment plants possibly combined with a central chrome recovery unit is very often the
best solution for tannery clusters, the expenses of specialized manpower for operation and maintenance
of CETP are being shared by participating tanneries.

information of Modjo Town

The wastewater from each industry requires pri- • Numbers and capacities of tanneries which are willing

mary treatment before it is allowed to enter the to relocate from Addis Ababa to Modjo leather city
and
common effluent treatment plant. This is neces-
•Addis Ababa Institute of Technology, Civil Engi-
sary because of a high pollution concentration
neering Department and Environmental Engineering
produced by a specific industry or perhaps the
Department are doing topography survey and Net-
presence of a specific group of toxins may not be
work lay out of the project site by considering the
treated by the common effluent plant. Monitoring
relocation of tanneries from Addis Ababa and sur-
of the pretreated influent to the common waste- rounding including Bishotu town.
water treatment plant from each industry and en-
force some penalty against any industry with a
pollution load exceeding the accepted level. This
penalty will force industries to control their pollu-
tion level and hence encourage sustainable devel-
opment.
In order to do the detail design of the CETP the fol-
lowing information are available:
• Profiles of tanneries in and around Modjo and Addis
Ababa
• Biological, physical and socio-economical baseline
Model Common Effluent Treatment Plant
(CETP)
3.2. Dispose to landfills
The motivation of government towards this work is to play a catalytic role in promoting social, economical and envi-
ronmental concerns related to leather industry for achieving sustainable development. For the implementation of the
project, different technical help from technical institutions, government and international agencies such as
UNIDO,UNDP,UNEP and World Bank are welcomed to make the project viable.

17
 FACILITY ACCREDITATION NUMBER: T0392
LABORATORY ACCREDITATION: ISO/IEC: 17025

TESTING & RESEARCH LABORATORY

DIRECTORATE INSIGHT
YESTERDAY, realizing the great potential of the
leather sector a laboratory was established by then
LLPTI now known as Leather Industry Development
Institute- LIDI. The laboratory is properly equipped
with most modern analytical instruments. From 2006,
institutionalization of the lab for providing tests was
commenced. The laboratory has trained technicians
who are highly qualified & trained in Italy as well as
by UNIDO experts in the field.
It was realized that in order to support the leather sector the
testing labs (physical & chemical) needs to be at par with
other testing centers across the world. Therefore as a first
measure for the labs
QUALITY issue was highly prioritized apart from Examination of Wastewater in tannery effluent
other development elements to provide services to the in-
dustry– such as management, marketing and human re-
sources. One of the major role of the LIDI laboratory is to
provide supportive element component for quality to the
industry.
Expanding its scope into international testing standard and
to fulfill both local and international market became its
target.

TODAY, Bearing this goal in mind, since inception, the

laboratory vision has focused on realizing international accreditation in
series of phases – in order to achieve:

• CREDIBILITY OF TESTS - INSTRUMENTS RELIABILITY

• SYSTEMATIC THINKING & OPERATION – REFLECTING ON
STAFF PERFORMACE/STATURE
• PROMOTION/EXPANSION OF CLIENT BASE
• INTERNATIONALIZATION AND INTERNATIONAL RECOGNITION
• STANDARDIZED TRADE TRANSACTIONS
• COMPLIANCE WITH WTO AGREEMENTS
• FACILITATING TRADE BARRIERS
• INCOME GENERATION BY THE ACCREDITED LABORATORY

18
With the devotion of the laboratory staff, the LIDI management support and the UNIDO Technical Assistance and
the Italian Cooperation contribution , the second phase of laboratory accreditation has been successfully completed
as certified by the South African Accreditation System SANAS - Facility Accreditation Number: T0392 Accord-
ing to the following schedule For the 1st and 2nd Phase of accreditation :
Standard Specifications, Equipment/ Materials/ Products Types of Tests/Properties Measured,
Techniques Used Tested Range of Measurement
ISO 17075:2007 CHEMICAL-LEATHER Chromium as Cr+6 by Spectrometer

SM5220-CODB:1998 WATER AND WASTE WA- Chemical oxygen demand as COD by

TER open reflux digestion
ISO 3376:2002, excl. item 6.3 ed.2 PHYSICAL-LEATHER Determination of tensile strength and
elongation excluding elongation at load.
ISO 11640:1993, excl. item 6.3 and PHYSICAL-LEATHER Colour fastness to exclude testing of wet
6.4 leather and felt wetted with artificial per-
spiration solution
ISO 3377-1:2002 PHYSICAL-LEATHER Determination of tear load – single tear
ISO 3377-2:2002 PHYSICAL-LEATHER Determination of tear load –double edge
tear
ISO 5402:2002 PHYSICAL-LEATHER Determination of flex resistance by
flexometer method

ISO 3379:2005 PHYSICAL-LEATHER Determination of distension and strength

of grain –ball burst test
ISO 5403:2002 PHYSICAL-LEATHER Determination of water resistance of flexi-
ble leather
ISO 14268:2002 PHYSICAL-LEATHER Determination of water vapour permeabil-
ity
ISO 11641:1993 PHYSICAL-LEATHER Test for colour fastness – colour fastness
to perspiration

national Accreditation for the fourth

TOMOR- phase- thus providing services and support to the
ROW, the third phase of laboratory accredita- leather busi-
tion is focused on shoe testing – with a view to: ness not only
encounter the massive imports of shoes into domes- at national
tic market valued above US$ 30 million with nega- level but ex-
tive impact on the performance of the local shoe tending the
industry, and to provide internationally recognized services to the
support to the quality of Ethiopian shoes exports. international
This will cover most tests of footwear: level.
Shoe Flexing, Sole Adhesion, Shore Hardness, Ross
Flexing /Cold Crack, Vamp Flex, and Sole Flexing
etc.
Consequently, firm plans are made to achieve Inter-

19
Beside, exporting leather and leather products to the global market companies need to
acquire an independent and internationally accredited certificate ensuring Eco – compliance
of their export products. To meet this & future requirement laboratory is already in the proc-
ess of attaining accreditation on determination of azo dyes, determination of penta chloro
phenol (PCP) and determination of heavy metals.
This will enable laboratory to deliver internationally recognized certificate thus ensuring com-
pliance to REACH REGULATIONS parameters for export of leather and leather products.
Major Services offered by the Laboratory :
• Certification of finished leather
• Support to research and training activities
• Development of standards in collaboration with
the Ethiopian Standardization Agency on
Leather and Leather products
• Technical and consultancy support to tanneries
for the establishment quality testing labora-
tory.

Digital Tensile Strength Test-

il ity
c
fa
ry
ato
r
a bo
L
rn
ode
m
t he
f
eo
m
So

20
 From TWINNING coordination office, LIDI

Leather is one of the important commodities that bring quate to meet its requirements. Thus, considering
considerable export earnings to the Federal Democ- substantial development of the leather sector and in
ratic Republic of Ethiopia. Indeed, from the Govern- turn insuring the global competitiveness, it was criti-
ment side, there is a strong belief that vigorous cal and timely to enhance the capabilities especially

growth can be induced from the sector, owing to the in the areas of: training to produce well skilled and

fact that it will accelerate the economic and social intellectual manpower, providing technical consul-

development of the country through creating: invest- tancy and developmental research activities.

ment, employment potential as well as generating Indeed, in an effort of transforming LIDI to a capabil-

export earnings. ity plane so that the present and future requirements

The Leather Industry Development Institute (LIDI) is and expectations of the leather industry can be sub-

the institute, established to realize the above men- stantially met and fulfilled internally, a three years

tioned national vision of the country, with respect to TWINNING arrangement project was signed, on 21st

the leather and leather products Industry. Indeed, June 2011, between Leather Industry Development

LIDI has been aspired to play a critical role in en- Institute (LIDI) - Engineering Capacity Building Pro-

hancing the global competitiveness of Ethiopian gram (Ecbp), and the worldwide known Leather re-

leather sector through enabling the production of ex- search Institute, namely Indian Central Leather Re-

port standard quality products that meet the specifica- search Institute (CLRI); working, particularly for this

tions of several importers abroad on a sustained basis. project, in partnership with the other Indian shoe In-

Though, LIDI has been strived for an up-lift of the stitute called Footwear Design and Development In-

Ethiopian leather sector, its capability in terms of stitute (FDDI).

human and other resources has appeared to be inade-

Twinning Project Signing Ceremony at the Ministry of Industry

21
The need for LIDI to have twinning arrangement with
CLRI & FDDI is to transform and adopt the best sys-
tem, which could be disseminated into its style of
organization, level of technology, human resource The activities under the Twinning project were initiated
development and information technology utilization
by benchmarking the Institutes as the world best.
Accordingly, the broader aim of this twinning project
is to equip, prepare and transform LIDI from where it
is now to the best globally known institution so that it
will have the capability to provide world standard
services for the Ethiopian leather industry at all levels
of its value chain. To achieve this, establishment of
suitable management system in LIDI and enhancing
the capacity of LIDI in Research and Development
(R&D) endeavors, Education and training, Consul-
tancy, Testing and analysis of leather chemicals as
well as creating and leading tripartite linkage among
TVET/University, R&D laboratories and Industry
have appeared to be much more critical.
by last week of July 2011. 46 activities were identi-
fied under the Twinning project, which will be exe-
cuted for a period of 3 years. In order to create aware-
ness, the program was launched by His Excellency
Ato Tadesse Haile, State Minister for Industry and
His Excellency Ato Wondesson Kiflu, State Minister
for Education, on 20th September, 2011 at Sheraton-
Addis. All the stakeholders of leather and leather
products sector and other relevant partners were in-
volved in the grand launching ceremony.

The Grand Launching Ceremony, at Sheraton-Addis

Training activates

So far about 11 core activities and most of the respective work elements of the activities have been undertaken
in the last six months of twinning implementation.

22
 Under the Twinning project it was proposed to cre-
ate a linkage between technical body LIDI and
academy for sustained growth of the sector. In this
regard, on 28th October 2011 a landmark Memo-
randum of Understanding (MoU) was signed be-
tween CLRI - LIDI – Addis Ababa Institute of
Technology (Addis Ababa University) and ecbp.
The MoU was signed to facilitate the conductance
of the existing BSc program in leather technology at
AAiT, which was launched in collaboration with
LIDI and AAiT, and introduction of new M.Sc and
PhD programs in leather and allied areas.
As per the twinning arrangement between LIDI
and CLRI, experts from CLRI will conduct and
strengthen the BSc course at AAiT and also en-
hance the capacity of LIDI personnel. In their effort
to enhance the capacity of LIDI, CLRI has pro-
posed to conduct Masters program in Leather and
MoU Signing Ceremony at AAiT
LIDI already have established linkage with the
leather industry and by the present academic linkage
with AAiT, LIDI has become one of the role model
for the country in having a trinity of Industry-
Institute-Academy linkage emulating the model of
CLRI.
Given such a condition, Government has accepted for
the establishment of a satellite centre of AAiT at
LIDI campus with state of the art facilities for con-
23
Leather products technology for 30 LIDI personnel.
The signed MoU will allow the LIDI personnel to
register for their Masters program at Addis Ababa
University and this course is proposed to be con-
ducted at AAiT as well as at CLRI, Chennai. More-
over, as a part of twinning arrangement, it is pro-
posed to elevate 5 of LIDI staff to Doctoral degree
level, with CLRI Scientists as supervisors. Simi-
larly, B.Sc. and M.Sc. level programs are planned
to be conducted in the area of footwear and leather
products in collaboration with FDDI. The basic aim
of this actually is to create intellectual human re-
source for the leather products industry. This will
also meet the longstanding demand of the leather
products industry for middle and higher level man-
agement requirements.
ducting classes and other activities including hostel
for the students. Such an arrangement would facili-
tate research, academy and industry partnership and
strengthen the program of generating quality man-
power for the Ethiopian leather sector.
 Human Resource Development for
the leather Industry
The leather Industry needs skilled and competent work
force. The master key for the development of the work
force is training and education. In response to the man-
power demand of the sector Leather Industries Devel-
opment Institute (LIDI) delivers Trainings in Footwear,
Goods, Garment and Leather Manufacturing. In all
training endeavors the industry has the major role to
play. It actively participates starting from occupational
mapping up to developing standards of the occupations
and deciding on the relevance of the curriculum. This
has enabled LIDI to develop strong linkage with the
leather industry in planning the human resource de-
mand and drawing the strategy to fulfill the required
skilled and competent work force.
The order of the day is competence. LIDI equips train-
ees with a combination of skills, knowledge and atti-
tude that enables them to perform a job to the standards
required for successful performance. The training pro-
gram of the institute deals with on what is expected in
the workplace with the emphasis on performing an ac-
tual job and not gaining knowledge or skills for their
own sake. Thus, LID’s competence-based vocational
training focus on building the knowledge and skills
needed in the leather Industry and also used to increase
employees' current job performance, prepare them for
changing job requirements or introduced new tools or
technology in the work place.
This has happened because of LIDI’s collaboration
with the leather Industry, The Federal Technical Voca-
tional Education and Training Agency (FTVETA) and
its stakeholders in establishing occupational standards
and competence unites from the world of work based
on the National qualification Framework.
The role of LIDI in human resource development for the
leather sector goes further in developing the trainers of
Technical and Vocational Institutions. LIDI in cognizant
with the high demand requirement for the work force in
the leather sector has designed joint action plan with the
24
By Tsegaye Tefera
Federal Technical Vocational Education and Training
Agency to expand the leather-training program to col-
leges found in and around the leather industries corridor.
This enables to increase the accessibility of the leather
training and address the work force requirement of the
expanding leather Industry in the country.
In addition, LIDI plays significant role in developing
Micro and Small Enterprises (MSE) engaged in leather
and leather products manufacturing. As its first move a
pilot plan to link MSE engaged in leather and leather
products manufacturing with medium and large
leather industries have been finalized with the joint
working group from Federal Micro and Small Enter-
prises Development Agency (FMSEDA) and Federal
TVET Agency. This plan is part of the industrial ex-
tension program to capacitate Enterprises and keep up
their sustainability in creating jobs for the unemployed
youth.
Moreover, LIDI has signed a tripartite memorandum
of understanding with Addis Ababa University, Addis
Ababa Institute of Technology (AAIT) and the known
Indian Central Leather Research Institute (CLRI) to
develop the higher-level skilled work force require-
ment of the leather industry. Currently, BSc program
in leather manufacturing is commenced and MSc pro-
gram is under way. This strengthens the foundation for
LIDI’s plan to become center of research and develop-
ment for the leather sector.
Similarly for enhancing capacity in services LIDI has
entered in to agreement with CLRI along with techni-
cal partnership of Footwear Design & Development
Institute under twinning arrangement. M.Sc. & B.Sc.
Programmes are also planned with FDDI in footwear.
In nutshell, LIDI’s endeavor in developing competent
work force has contributed a lot for the Ethiopian
leather industry to become competitive in the global
market.
 Competing For Advantage
The Ethiopian government’s industrial development
strategy states that ensuring accelerated and sus-
tained industrial development is a fundamental pol-
icy direction. To implement this policy, the sector’s
development strategy focuses mainly on industries
that are labor intensive, have broad linkages with the
rest of the economy, use agricultural products as
inputs, are export oriented and import substituting,
and contribute to rapid technological transfer. To
carry forward the important strategic directions pur-
sued in the Plan for Accelerated and Sustained De-
velopment to End Poverty (PASDEP), the govern-
ment has formulated the five year Growth and
Transformation Plan (GTP) in which the leather
sector is expected to generate 500 million USD at
the end of planning period.
The government considers that the leather industry,
being the largest manufacturing industry has the po-
tential to contribute significantly to the export earn-
ings of the country on one hand and the employment
opportunities on the other. So, to enhance this, the
government has designed different policies and
strategies in order to catalyze the growth of the
leather industry through policy interventions and
intensive technology up gradation programs. Accord-
ingly, leather as the priority sector of the economy is
given due attention by the government to maximize
the efficiency and effectiveness of the companies of
leather and leather products as well as increasing the
over all performance of selected value chain through
benchmarking program which strengthen the interna-
tional competitiveness.
On top of the supports given by the government, all the
companies must be able to use their competences to sat-
isfy the needs of the targeted groups of customers they
have chosen to serve by using their business level strate-
gies.
25
By MOHAMMEDZEIN SIRAJ
To position themselves, the companies must decide
whether they intend to perform activities as compared to
their rivals. Thus, the firm’s business level strategy is a
deliberate choice about how it will perform the value
chains primarily and support activities in ways that create
unique value.
Successful use of a chosen strategy results only when the
companies integrate their primary and support activities
to provide the unique value they intend to deliver. Value
is delivered to customers when the firms are able to use
competitive advantages resulting from the integration of
activities.
Favorably positioned firms have a competitive advantage
over their industry rivals and are better able to cope with
the five forces of competition such as:
• Reach- the companies access and connection to
their customers.
• Richness – the depth and detail of the two – ways
flow of information between the companies and
their customers by using facilities of information
technology.
• Affiliation – facilitating useful interactions with cus-
tomers.
• WHO – determining the customers to serve.
• What – determining which customer needs to sat-
isfy.
When selecting a business level strategy, the companies
should evaluate two types of potential competitive ad-
vantages:
 • Lower cost than rivals or the ability to differentiate and command a premium price that exceeds the
extra cost of doing so.
• Select a segment or group of segments in the industry and tailor their strategies to serving them to
the exclusion of others.

Ultimately, to employ successful competition, companies of leather and leather products industry are recommended to:
• see themselves as multinational enterprises and are led by a management team that is comfortable in the
world arena.
• develop integrated and innovative strategies that make it difficult and costly for other firms to compete.
• aggressively and effectively implement their world wide strategy and back it with large investments.
• understand and use properly the existing worldwide technological innovations being trapped through
benchmarking program to produce competitive products.
• operate as if the world is one large market rather than a series of individual, small markets.
• have organization structures that are designed to handle their unique problems and challenges and thus
provide them the greatest efficiency.
• develop a system that keeps them informed about political changes around the world and the implications
of these changes on their firms.
have management teams that are better able to respond to the various demands of their respective markets.
allow their management teams to play an active role in the operation of the enterprise.
be close to their customers having lean organization structures, encouraging autonomy and entrepreneurial activity
among their personnel.

26
Smile...
Smile! Don’t forget to dress your face. Use The person at whom we smile, smiles back. In
your face; it’s your million-dollar asset. Many one sense, he smiles at us. In a deeper sense,
people today are spending thousands of dol- his smile reports the sudden well-being we
lars of face-lifts. There is a face-lift that you have enabled him to experience. He smiles be-
can perform on yourself that will instantly im- cause our smile has made him feel smile-
prove your facial features. You can change deserving. We have, so to speak, picked him
your appearance with a simple smile. out of the crowd. We have differentiated him
Do this right now smile for about five minutes. and given him individual status.
How do you feel? Better or worse? I know that What a powerful thought! A simple smile can make
you feel better. It is almost impossible to smile somebody feel important. When you make some-
on the outside and still feel insecure, doubtful, body feel important, you have won a friend forever.
or crummy on the inside. Use your million- Whenever you meet somebody for the first time,
dollar asset as often as possible. A smile is smile big and that person will feel like he has
your body’s natural response when you feel known you all his life.
happy. When you are If you have hard
smiling, you look and feel time smiling at
more confident. first, don’t worry
Your smile always gives about it. Go
you an instant confi- ahead and smile
dence boost. If you are anyway. Say the
not using your smile, you work cheese to
are like a person with a yourself in the
million dollars in the mirror. Get your
bank and no checkbook. smile muscles
Your smile is the million- warmed up, and
dollar asset in your hu- you will begin to
man relations inventory. feel a surge of
Contrary to our pervious confidence. Re-
“seven seconds” discussion, researchers from member this point: Your actions determine your feel-
the University of Toledo found that when peo- ings just as much as your feelings determine your
ple meet you for the first time, they make up actions.
their minds about your attitude within a mere Many people think that money is the most powerful
fifteen seconds! Start off with a smile, and commodity on the earth… actually it is a dream, a
they will remember you as positive person for- vision that unlocks attraction. Confident leaders
ever! attract others.
Your smile can boost somebody else’s con- One of the problems I see with much of what has
fidence. been written on the subject of dreams and goals is
I learned this Confidence Coaching Solution that, if we are not careful, we can start focusing so
form Bonaro Overstreet. In her book under- much on our own dreams and desires that we forget
standing Fear in Ourselves and Others, she about reaching beyond success to significance. We
writes: focus too much on ourselves instead of making a

27
If you stop thinking about yourself and concentrate on the contribution you’re making to the rest
of the world, you will get more energized and will forget about your own problems and issues.
This will increase your confidence and allow you to make a maximum impact, increasing your
happiness and causing you to feel fulfilled. Here is the exciting thing: the more you contribute to
the world around you and the dreams of others, the more you will be rewarded with abundance,
personal success, significance, and recognition as world-class leader.
Dreams keep people motivated. Dreams make a difference in our lives and the lives of others.
Making a difference with dreams keeps one motivated for a lifetime. Write your dreams down.
Read them to yourself out loud every day when you get up. Meditate on your dreams before you
fall asleep. Let your dreams fill your day with motivation that will lift you and others up.
Exploding businesses have people who really want to be involved. Great people are attracted to
them because they want to become part of an organization that is going somewhere, doing some-
thing, and made a difference in the world.
Apple’s cofounder, Steve Jobs, was trying to convince John Sculley to leave his job as senior vice
president of PepsiCo to become the CEO of Apple. Sculley wasn’t particularly interested in leav-
ing a secure position at Pepsi to run this brand new company. Jobs changed Sculley’s mind by
asking him “Do you want to spend the rest of your life selling sugared water or do you want a
chance to change the world?” Being part of a company that was doing something important is
what attracted John Scully to Apple.
Focus on making a difference! Confident leaders inspire and attract quality people to help them
turn dreams into reality.

America’s Confidence Coach Reminds You…..

The more valuable something is, the more people are drawn to it. The cheaper something is, the
more invisible it becomes.

• Confident people know the importance of being seen so people will know they are attractive.

• Change your thinking from “Me” to “We” just flip the “M”

• Nourish our potential by becoming an expert.

• Invest in your most valuable asset- you!

• Be a lifelong student. The more you learn, the more you earn, and the more self-confidence
you will have.

• Preparation today gives confidence tomorrow.

• Get ride of your real handicap- a bad attitude!

• Confidence can be a negative or a positive force.

• Confidence will boost your paycheck.

• Dress the way you want to feel, not the way you are currently feeling.

• Dress the way you want to be addressed.

• Dressing for success improves your performance.

• Your smile can boost somebody else’s confidence.

28
 Producer Responsibility Issues
In most countries, managing end of life waste has
long been and, in most cases, still is the responsibility
of governmental agencies and local authorities. Once
products reach the end of their functional lives, pro-
ducers play no role in collection, recycling or disposal
of those ends of life products. This approach has
started to change with the emergence of a producer
responsibility concept. This concept of broadening
manufacturer’s responsibility for products beyond
their useful life into the post-consumer phase, also
concerns closing the loop with respect to materials use
and waste management at the end-of-life phase, while
providing a source of financing to offset the cost dis-
advantage of recycling versus disposal and energy
recovery.
Engineering Tomorrow
The world of leather products is very competitive to-
day & in the future intense rivalry for the increased
worldwide market share is not ruled out. With the inte-
gration of the market globally, the format of competi-
tion has changed dynamically across the world with
channel alliance, target price modeling, supply chain
efficiency, operation’s efficiency, reliability & product
design etc. Increased focus is now shifting towards
research & development in the area of material devel-
opment, design & reliability of the product.
Now, if we look at the world population today it stands
at 2011 at 7 billion in comparison to the 5.5 billion in
the year 1994.This is expected to be added by 1 billion
by the year 2024. It is also estimated that the GDP will
grow to US $ 104 Trillions by 2024 from the level of
US$ 24 Trillions in 1994 at global level.
It suggest that demands for the apparel sector is going
increase if the growth rate remains positive creating
more opportunities for the investment in the long term
29
Footwear industry’s response to increasing problem of
end of life waste has been negligible. In fact, it shall
be considered in the long run by attaining experience
from the world’s major shoe manufacturers like
Nike’s “Reuse –A- Shoes” programme. Nike Inc, has
been taken measures to manage its waste. Their reuse
and recycling programme involves a series of collec-
tion points in retail centers where people can deposit
their worn-out and discarded athletic shoes. The shoes
are then collected and taken to a central recycling
facility where they are ground up and shredded, pro-
ducing a material called “Nike Grid”, which can be
used in surfacing for tennis and basketball play-
grounds or running tracks. This programme has an
annual recycling goal of about 125,000 pair of shoes
in the United States.
By Solomon Tadesse
but at the same time intense rivalry in the sector will
require organizations to be more efficient in all re-
spect. It may also be noted that manufacturing bases
have multiplied many folds after 1950’s period & it is
ongoing process.
In the business of apparels - fashion is the key word &
very dynamic in nature .It is this aspect of business
which creates prime USP for the product & gives tre-
mendous advantage in the penetration of the market.
For most of the organizations the design development
process becomes cost center activity. The product de-
velopment process is also cost intensive in terms of
research, market intelligence & resource requirement.
It is therefore quite often this function does not get
strategic attention & investment. Thereby, strategic
benefits are usually missed out.
The institutions play a vital role in the development of
the sector.
In fact, the role of the institutions is now getting redefined
in terms of providing support to the industries apart from
human resource development. As the cost of logistic &
sector development cannot be borne individually by any
one organization, it is imperative that institutions have to
concentrate & foresight crucial support needed by the
industry.
Leather Industry Development Institute (LIDI) has real-
ized this aspect of institutional leadership for the develop-
ment of leather sector. The creation of SBUs - `Product
Development Center (PDC)’ & `Testing services’‘ has
been vital step taken by the LIDI in this regard. The ob-
jective is to provide services to the industries where in
The vision of the PDC is to establish design leadership
with in African continent. By the establishment of the
Product Development Center- LIDI has tried to address
the growing need of the design related services in the
professional manner. This will benefit the industry in
tremendous way as cost of designing; pattern develop-
ment will be reduced substantially at the organization
level. However, it is the professional approach that
holds the key for the future of the growth of the indus-
try since indirectly the organizations will be benefitted
in terms of lead time reduction & cost effectiveness.
Presentation by Mr. Steve Lee- World Footwear Congress-Rio,2011

investment by the organizations are either prohibitive or

collective utilization can be carried out with efficiency &
effectively.

The PDC division of the LIDI is divided in two sub divisions based upon product characteristics:
- Leather Goods & Garments
- Footwear

Fig.: Product Development Center- An integrated approach

Both of these sub divisions of the PDC are having fully integrated facilities needed by the organization. Key infra-
structure facilities include:
Computer Aided Design system
Integrated sample room facility
Last digitization facility (Footwear only)
Pattern development facility through CAM

It has been realized that efficiency is the key factor for these services. Therefore, all the services have been designed
on time basis. The performance of the service will play the key role in defining future growth of the development &
expansion of the services.

30
 Fig.-Service design model for PDC services
Following services have been developed in order to serve the industry which is based upon the customized solutions
needed by most of the industry. The PDC departments have been equipped with the trained staff to handle industry
related services:
1. Sample development: Design realization is essential part of the designing process. The integrated sample
making service has been developed exclusively by the LIDI keeping this factor in to consideration. The sam-
ple making service is available on the integrated basis with entire facilities like hand cutting, modern stitch-
ing machine & machine lasting facility. This facility is unique in the sense this allows the designer to imme-
diately assess the correctness & appearance of the design in real condition.
2. Design consultancy: In order to increase the competitiveness of the industry the PDC department has been
entrusted with the responsibility of developing designing capacity of the organizations. This includes the ser-
vices such as design trouble shooting, design development for the target market, pattern engineering services,
last development etc.
3. Last digitalization: The footwear directorate of PDC is equipped with the last digitization facility. It is
unique in the sense that it allows the 3 dimension shape of the last to be digitized effectively. This increases
the accuracy of the design while designing. This is one of the most modern facilities available currently in
Ethiopia.
4. Pattern grading service: Increasingly the grading of the pattern has become important & crucial as the de-
signs are now a day’s demands more accuracy. Realizing this PDC departments have been equipped with
pattern grading services with ELITRON software. PDC department of footwear & leather goods are equipped
with latest software with CAM output. This has reduced painstaking manual grading operation to quick accu-
rate grading process.
5. Range building: The range building activity is also included by the PDC department. This value added ser-
vice has now been added based upon the international experience gained by the LIDI. This activity will help
the industry in developing product range & increasing product basket.
6. Pattern engineering: The pattern engineering activity is also developed at PDC department for the designing
& making cost effective design. The scope of this activity in not limited to the pattern alteration only but also
providing inputs related to the alternative inputs.
7. Human resource development: This is one of the main activity for which PDC department is entrusted - the
development of qualified human resource. At LIDI it has been realized that trained human resource are key to
the development of the designing activity. The Product Development department also conducts short term
training programs at LIDI. This service will also enhance the capacity of the organizations in terms of deliv-

31
LIDI recognizes the role of PDC department in the
development process of the leather product sector.
LIDI also realize that it is efficiency of the service &
client orientation that will provide competitive edge
to the leather products industry. Internal measures
have been initiated by the LIDI to stream line the
operation functions of the PDC department. Delivery
bench mark against different services has been devel-
oped. The scope of services has been expanded after
industry demand analysis. There are around more
than 15 different services under 6 different categories
available for our clients. End to end solution ap-
proach is now adopted for service support i.e. right
from designing to the tooling support. Value based
services are also planned to be added shortly.

Africa's Most Successful Women: Bethlehem Tilahun Alemu

Bethlehem Tilahun Alemu (Source: Tadias.com)

Every now and then, I profile outstanding African women who’re making giant strides in business, politics, technol-
ogy, entrepreneurship and leadership on the continent and elsewhere around the world. This week, I profile the spec-
tacular Bethlehem Tilahun Alemu, an Ethiopian entrepreneur and the founder of a thriving eco-sensitive footwear
brand that pundits hail as Africa’s answer to brands such as Nike, Reebok and Adidas.
Entrepreneur Bethlehem Tilahun Alemu was born and raised in Zenebework, a small, impoverished rural commu-
nity in Addis-Ababa, Ethiopia. As a child, she discovered that people of her community were living in abject squalor
because there were very few jobs available.
While the most of the locals were unemployed, Bethlehem discovered that several of them possessed remarkable
artisan skills which remained largely unexploited. This observation drove her to brainstorm on ways through which
she could transform the skills of her community members into a sustainable enterprise that could generate liveli-
hoods for them, and create wealth over the long term.
By 2004, armed with startup capital sourced from her husband and members of her immediate family, Bethlehem
mobilized artistically-gifted members of her community and founded which has become one of Africa’s most recog-
nizable footwear manufacturers.

Basically produces footwear locally that often features a strong infusion of ancient Ethiopian culture with subtle
undertones of modern, western design influences. Practically, all shoes are redesigns and reimaginations of the fa-
mous Selate and Barabasso shoe, a traditional recycled tire sole shoe which has been worn by Ethiopians for a very
long time. The Selate and Barabasso shoe was famously worn by Ethiopian rebel fighters who vehemently opposed
western forces from colonizing the country. As matter of fact, that’s where the name ‘soleRebels’ emerged from.

32
SoleRebels manufactures comfy sandals, slip-ons and
lace-up shoes hand-crafted from recycled, weather-
beaten tires and an assortment of locally-sourced natural
fiber ingredients such as the ancient Koba plant (an in-
digenous plant which has been cultivated in Ethiopia for
over several thousand years) and organic Abyssinian jute
fiber which are used mainly in creating the mid-soles of
SoleRebels shoes. By blending this ancient recycling
tradition with contemporary, western-influenced, hip
shoe designs, SoleRebels has built a successful footwear
brand utilizing a production process that is zero carbon
production and very eco-sensitive. All of SoleRebels
shoes are hand-crafted by Bethlehem’s staff of over 100
people strictly using Ethiopian craft practices such as
hand-spun organic cotton and artisan hand-loomed fab-
ric. And the company sources all of its raw materials
locally.
Today, shoes under the SoleRebels brand are sold in over
30 countries around the world and through various e-
commerce sites like Amazon and Endless. SoleRebels
also sells its products through its own e-commerce site.
Prices vary, but you can get a pair of SoleRebels for any-
where from $20 to $100.
SoleRebels has become a hugely successful, sustain-
able, truly world-class enterprise. I asked Bethlehem
sometime last year for revenues of her company. Like
most African entrepreneurs I’ve encountered, she re-
fused to divulge the numbers. But SoleRebels takes in
Why Ethiopia Should Move to the Export of
Finished Leathers?
African countries have about 20% share of the global
population of cattle, sheep and goat and only 15% of
them are made available for leather manufacture. This
clearly indicates that there exists a huge gap in Africa
even in utilization of the available raw material re-
sources for the manufacturing of leather. Even out of
the available raw material there is no effective value
addition realized in the continent. Many of the African
nations export in form of raw material or only semi-
33
at least $1 million in annual revenue. I know this be-
cause the company was among the top 5 finalists of the
2011 edition of the prestigious Legatum Africa Awards
For Entrepreneurship. One of the criteria for the final-
ists was that their companies had proven annual reve-
nues of $1 million – $15 million.
Bethlehem has earned significant international recog-
nition for her work at SoleRebels and is now one of
Africa’s most recognizable female entrepreneurs. Early
last year, she was selected as a Young Global Leader
by the World Economic Forum. In June she won the
award of ‘Most Outstanding Businesswoman’ at the
annual African Business Awards organized by African
Business Magazine, and in November, she was named
the ‘Most Valuable Entrepreneur’ at the 2011 Global
Entrepreneurship Week (GEW).
A lady of grandiose ambitions, Bethlehem is relent-
lessly pursuing her dream of building an international
footwear brand right from the heart of Ethiopia. And
she’s making significant progress. SoleRebels has
opened up a retail outlet in Taiwan and has franchise
proposals for Canada, Italy, Australia, Israel, Spain,
Japan and the United States among other countries. In
a recent interview with Tadias Magazine, Bethlehem
estimated that revenues from Sole Rebels retail opera-
tions will hit the $10 million mark by 2016. Consider-
ing the exceptional success she’s achieved in less than
8 years, she’ll probably exceed her estimations
By Leather Manufacturing Technology Directorate
processed leathers and the actual benefit of value addi-
tion is reaped elsewhere.
This is a social huge loss of opportunity and economy.
Countries such as Ethiopia and Zimbabwe have large
livestock population and organized hides and skins
industry. The quality of the hides and skins and the
better histological characteristics are the strengths of
Ethiopian hides and skins. Specifically the sheepskins
of Ethiopia are known for its softness and adequate
strength even in thin leathers. These Abysinnian sheep
skins are world renowned to be best suiting for the
manufacture of glove leathers. However the raw mate-
rials of Ethiopia could not reap due value because of
many important factors namely technology inade-
quacy, under availability of intellectual and skilled
manpower.
However the Government of Federal Democratic Re-
public of Ethiopia had recognized the potency of this
sector and attached immense importance to this sector.
Many initiatives had been taken including the project
of Benchmarking under which the select Ethiopian
tanning units had been capacitated in various avenues
such as technology capability, productivity, quality
and environmental compliance. As a major policy
initiative the Government had now imposed restriction
on export of intermediate leathers such as wetblue and
crust leathers.
For any industrial sector such a transition would cer-
tainly be uncomfortable if not permanently but ini-
tially. However, it would be fair if such a policy ini-
tiative is analysed and understood from a broader per-
spective. At the outset let us understand the setback or
hiccups those could possibly be brought about by such
an initiative. Certainly all the tanning units in Ethiopia
are neither prepared economically or technologically
for such a change despite adequate time was given.
Secondly not all the tanners are conversant and com-
fortable carrying out export business. Thirdly the tan-
ners are under the fallacy that the export of finished
leathers may not bring about proportionate economical
benefit to them. Finally and very importantly the tan-
ners have to be dependent on the foreign intellectual
manpower. Therefore these factors may pose serious
initial impediments to the metamorphosis. But these
factors are not strong enough to be permanent and it is
very much possible for the Ethiopian tanning sector to
overcome this.
Now let us analyse the benefits of the initiative of the
Government in promoting the export of finished leath-
ers. It has multiple benefits such as benefits to the
34
industry, benefits to the exchequer and benefits to the
society. Such an initiative promotes the forward inte-
gration and would facilitate business growth and re-
turn on investment. However such benefits can only
be realised after the initial acclamation period, which
could be about couple of years. The real due return to
the leathers manufactured in Ethiopia effectively
could be reaped only with the technological maturity
of the tanning industry and availability of intellectual
manpower. The Government is simultaneously taking
steps to make the intellectual manpower available
through Ministry of Education, Ministry of Trade,
Leather Industry Development Institute (LIDI) and
Addis Ababa Institute of Technology (AAiT). The
promotion of finished leather export would also facili-
tate the establishment and growth of support industries
such as chemical industries and mechanical industries.
Secondly such initiative would bring about more direct
and indirect revenue to the exchequer, which ulti-
mately could be utilized for the national building.
Thirdly and obviously this would bring about en-
hanced employment opportunity, which eventually
would bring about societal growth. Conclusively it
shall be stated that such an initiative of promotion of
the export of finished leathers is an opportunity in
many respects certainly not a setback or threat.
Investment dynamics of
Leather sector
Ethiopia is the country located at horn of Africa, en-
dowed with abundant natural resources and harmonize
to have a very conducive investment climate. One of
her resource, which is estimated to be 10th largest in
world and ranks 1st in Africa is the live stock heads.
Leather is one of the by product which is developed
from the live stock population.
In addition to abundance of raw hides and skin, Ethio-
pia also have quality raw materials known to be se-
lale genuine and Bati Genuine. Most of leather glove
manufactures prefer to have these category of raw
materials.
The government of Ethiopia has devised policy frame
work which considers the leather sector as priority to
back-up the economy of the country.
To develop sector’s potential very well single window
service institution is also established. Institutional
setup focuses investment phase up to marketing cover-
ing the wide spectrum scope of the sector.
The role of the institute has been redefined by the gov-
ernment to facilitate technology transfer, employment
creation, & capital investment.
Review of investment (1992-2011)
From the past 20 years journey of the sector has been
encouraging-there were about 297 licensed projects in
the sector of that the operational one are 24 tanneries
and 12 mechanized footwear and 5 medium scale
leather product companies. But the companies’ pro-
duction volume is insignificant in comparison to world
demand and production volume.
Looking in to past 8 years investment record the aver-
age annual growth of investment projects numbers are
47.5%.
This indicates that the government policy is positive
which creates the atmosphere to sector specific in-
vestment climate.
In fact during the global financial crisis of the world
investment growth in the sector shows positive growth
by 40%. It justifies the investor’s faith in to Ethio-
pian investment policy & sector’s advantage such as
raw material, cheap labor , low power cost , strong
banking system etc.
When we look at 30 years history leather sector local
investors took the biggest share of 79% while FDI
shares 21% remaining. The approximate capital accu-
mulation registry of all investments is about 4.8 billion
Birr, 43% of the capital contribution is by FDI. This
fact- strongly give us the ground to argue how much
beneficiary is the FDI for capital accumulation and
technology transfer for least developed countries
(LDC).
35
Investments on pipelines
Staring from the past fiscal year there are 12 projects
under going given 75% share to leather product com-
panies. Presently, about 4 projects have commenced
production partially, the rest are under construction
with 75-97% completion status.
When all the projects are launched at full capacity
Ethiopia will be able to produce additional 121,500 sq
finished leather, 16,000 pairs of glove, 30,500 pairs of
shoe, and 2000 pcs of leather articles. It is also ex-
pected that with in 2 years this sector will create
8086 employment opportunities.
LIDI as an institution offers `Single Window Service’
facilitation starting from land offer up to project mar-
keting,. This has been initiated for end to end solu-
tion . The full-fledged and integrated support is ex-
hibited by investors confidence in investment like
HUA JIAN, NEW WING Addis.
Future prospect
The GTP targets to earn 500 million USD from this
sector at the end of 5 years through growth and trans-
formational plan, with almost past 1½ years started.
The labor intensive industries are now shifting to the
developing nations which offers a potential opportu-
nity to Ethiopia. Even though there is a list of develop-
ing countries, Ethiopia has a special climate for invest-
ments listed as below
• Single window system through institutional set up
for leather sector
• Conducive investment policy, support and incentive
packages
• Minimum capital requirement for foreign investors
• High quality genuine abundant raw materials
• Availability of low wage labor
• Quite stable macroeconomic indicators.
• Available and trained manpower in the sector
• Well developed industrial zones for the sectors
Though the advantages are many only some have been
indicated apart from Ethiopia is having sound bank-
ing system, well connected airport to major destina-
tions, good highways & adequate power supply.
Opportunities
On the way striving towards transformation, in the
coming 4 years it is required to establish a number
of projects which will contribute to bridge product
demand & supply gaps and income improvement of
people through employment generation. Following
project are identified and investment opportunities
are identified for Ethiopia
Leather shoe manufacturing
• Leather glove manufacturing
• Leather garment manufacturing
• Leather articles & saddlery
• Leather chemical manufacturing
• Leather machinery manufacturing
• Spare part manufacturing for the sector
• Sole manufacturing
• Accessories and component manufac-
turing
LIDI has initiated customized project profiles which
can be developed as per requirement & had already
developed on below service supports
Techno economic feasibility study
Facilitation of infrastructure delivery
Facilitation of land and , construction license
offer
Machine erecting, technology selection

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38
 LIDI’s Organizational structure

Services Provided by LIDI

Investment Phase

Production phase

Marketing Phase

Services Provided Under the Investment Phases

Collecting, analyzing, sharing, and disseminating all necessary updated information as regards the leather
sector.

Prepare & promote project profile for investment opportunity,

Provide feasibility study services.

Provide consultancy services in technology selections, in dealing with technology, in building construction,
installation and in commissioning to those involve in the sector

Supervise and provide technical services for the projects in pre- implementation, during-implementation and
post-implementation for the investors who engaged in leather sectors

Providing maintenances, spare parts, production planning & controlling and consultancy services to the
leather sector.

Services Provided Under the Production Phases

Providing different trainings which made the sector completive in productivity and quality in the world mar-
ket.

Providing research and development service which solve the bottle neck of the sector.

Provide benchmarking services in colleting, analyzing and disseminating the information to facilitate the
development of leather sector to the world index.

Providing production standardization and testing to the leather industry.

Technical and consultancy Services

Services provided under Marketing support phase

Extend support in the creation of input and output linkage;

conduct market study for leather and leather products industries products;

Identify technologies that can be developed and undertake product development activities.
39
40