Presented by:Abhishek Gomber T. Shome Sundaram Adi Narayan Deepika Sharma
The Indian leather industry compromises of sectors as • Footwear, • Leather garments • Finished leather • Leather goods and accessories.
A large part (nearly 60-65 per cent) of the production is done by the small/cottage sector. Leather and leather products production is centred in southern, northern and eastern India.
INDIAN FOOTWEAR INDUSTRY
• India is the second largest global producer of footwear after China, accounting for 13% of global footwear production of 16 billion pairs. • India produces 2065 million pairs of different categories of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million pairs and nonleather footwear - 1056 million pairs). • India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand. • The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulam. About 1.10 million are engaged in the footwear manufacturing industry. • Tamil Nadu is the biggest leather exporter in the country with the south accounting for 43 per cent of the country’s share.
• The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern lines with state-of-the-art machinery. • To further assist this process, the Government has permitted 100% Foreign Direct Investment through the automatic route for the footwear sector. • Conducive Investment climate towards attracting overseas investments and increasing cost competitiveness. • The Government of India is setting up dedicated Footwear Complex and Footwear Components Part where footwear clusters are located. • There has been active interest in collaborating with Indian Footwear companies from European countries like Italy, Spain and Portugal.
Footwear – Global Scenario and India’s share The global import of Footwear (both made of leather as well as non-leather) increased from US$ 59.77 billion in 2004 to US$ 87.23 billion in 2008, growing at a CAGR of 9.91%. During 2008, the India’s share in the global import is 1.76%.
(In Million $)
2004 2005 2006 2007 2008
Global import of Footwear 59779.52 67066.21 72747.35 80722.29 87234.28 India’s export of Footwear & Footwear Components % Share of India
1.70% 1.85% 1.76% Source: ITC, Geneva & DGCI &S, Kolkata
India’s Footwear Export Growth over the last Four Decades
• Export of footwear from India increased manifold over the last four decades. • Today, India’s footwear export is valued at US$ 1507.51 million, constituting 44.33% share in total export of leather & leather products. in the last five years ending 2009-10
• Footwear exports have increased from US$ 82.56 million in 1979-80 to US$1507.51 million in 2009-10
Source: Indian Footwear Industry
Major Markets: • During 2009-10, the main markets for Indian Footwear are: UK with a share of 19.66% Germany 14.88% Italy 13.93% USA 8.20% France 9.58% Spain 6.37% Netherlands 4.32% Portugal 1.50% U.A.E 2.63% Denmark 1.13.%. These 10 countries together accounts for 82.20% share in India’s total footwear export.
• Nearly 90% of India’s export of footwear goes to European Countries and the USA. Future growth of Indian footwear in India will continue to be market driven.
INDIA'S LEATHER GARMENTS INDUSTRY
•Leather garments form a significant segment of the Leather Industry in India.
• Leather garments production capacity is estimated to be 16 million pieces annually.
• India produces different types of leather garments i.e., jackets, long coats, waist coats/shirts, pant/shorts, motorbike jackets, industrial leather garments, leather aprons etc. • India is the second largest producer of leather garments, next only to China, which produces 70 million pieces of the total global trade volume of about 120 million pieces.
• India’s export of Leather Garments increased from US$ 333.30 in 2005-06 to US$ 428.52 million in 2009-10, growing at a CAGR of 6.48%. • India’s export of leather garments accounts for a share of 12.60% in India’s total leather trade of US$ 3400.97 million in 2009-10.
• India’s position as the fourth largest global supplier of leather garments is only going to strengthen given the availability of quality raw material coupled with skilled craftsmanship.
• Major markets for Indian leather garments are the USA, Germany, France, Italy, Spain, UK, Japan, Netherlands, Hong Kong, Switzerland, Belgium, Canada, Austria, Denmark, Russia, Greece, Sweden and Portugal. These 18 countries account for a share of 93.83% in India’s total leather garments exports. • In the global leather garments imports, the USA alone accounts for a share of 15.54%, followed by Germany 12.67% and France 8.75% • Major brands like Pierre Cardin, Tommy Hilfiger, Versace, DKNY, Hugo boss, Liz Claiborne, Ann Taylor, Nautica, Kenneth Cole, Charter Club, Daniel Hector
(source: Leather Garments from India)
• With modern technology with state-of-the-art machinery installed in the production units, India is come to be recognized as a major producer of quality leather garments in the globe.
• Leather Garments industry’s accelerated development and growth is being aided by the capacity expansion and modernization efforts of the private industry and the Government of India’s encouraging policy measures.
India’s Export of Leather Garments – Country-wise country apr-mar 2008-09 % share 2009-10
(In Million $) % change % change 2009-10
U.S.A U.K ITALY FRANCE
22.20 27.92 70.13 42.28
17.03 25.07 64.95 55.55
3.97% 5.85% 15.16% 12.96%
-23.32% -10.18% -7.38% 31.39%
Source: Indian Leather Council
INDIAN FINISHED LEATHER INDUSTRY
• India has amongst the largest livestock population in the world, providing a strong raw material base in goat, buffalo, cow and sheep leather. In terms of raw material availability in pieces.
• India is endowed with 12.55% of Bovine hides & skins, 12.29% of goat and kid skins, and 3.48% of Sheep and Lamb skins in the world.
• The range of finished leathers include classic finishes (polish, glazed, aniline, patent), matt surfaces (suedes, nubuck), nappa, burnished & oily leathers, crackled & distressed finishes etc
• Amongst the major producers of finished leather in the world, the Indian Leather Industry has a long tradition of supplying high quality leather for the global market. • Indian tanning industry produces over 2 billion square feet of leather per annum. •The Industry has the tanning capacity to fulfill 10% of global leather requirements. • Major tanning clusters in the country are Chennai, Ambur, Ranipet, Kolkata, • Kanpur, Jalandhar etc. There are approximately 2091 tanneries in the country – 45% in Tamil Nadu, 26% in West Bengal, 18% in Uttar Pradesh.
The global import of finished leather increased from US$ 19784.34 million in 2004 to US$ 20631.73 million in 2008, growing at a CAGR of 1.05%. India’s share has increased from 3.07% to 3.26% during the said period.
(In Million $)
2004 Global import India's export % Share of India 2005 2006 2007 2008
19784.34 19893.53 607.73 636.27
21700.85 23151.85 20631.73 724.00 807.19 673.37
Source: ITC, Geneva & DGCI & S, Kolkata
India’s export of finished leather touched US$ 625.54 million in 2009-10, with a share of 18.39% in India’s total export.
Leather Goods & Accessories
• 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. • Most of the units manufacturing leather goods are located in Kolkata, Chennai, Mumbai, Kanpur, Bangalore and Puducherry. 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. • India’s share in global leather Goods & Accessories segment is 4.84% in 2008. 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.
• 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.
• Leather gloves of all categories like fancy/fashion gloves, sports gloves, industrial gloves and other leather gloves is a thrust product among the items of small leather goods being manufactured and exported from India. India is the fourth largest exporter of Leather Gloves to the world. • 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.
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, growing at a CAGR of 13.71%. During 2008, the India’s share in the global leather goods & accessories import is 4.84%.
Leather Goods (Including
Gloves) World import India's export
10786.59 12278.19 13743.57 16386.40 18034.94 585.72 660.17 706.29 800.47 873.44
% Share of india
Source: ITC, Geneva & DGCI &S, Kolkata
• India’s export of leather goods & accessories including Gloves touched US$ 756.02 million in 2009-10, with a share of 22.23% in India’s total export.
• The major markets for Indian leather goods are the USA, Germany, the UK, Italy, Spain, France, Russia, Netherlands, UAE and Australia. Nearly 79.36% of India’s export goes to these countries.