Leather industry occupies apredominant place in India, being the third largest producer next to China and Italy. The industry has a massive potential for employment generation, growth and exports,with the annual exports touching 2 billion USD. The industry is one among thetop 8 industries for export revenue generation in India. It holds 10% of theglobal raw material, and 2% of the global trade. India is the biggest livestockproducer in the world, with the capacity of 1.8 billion square feet of leather productionannually.
Almost 60 to 65% of its totalproducts are in the small sector. In the recent past, Government has come upwith policy initiatives to upgrade the industry. Later on, the industryunderwent through a positive metamorphosis from a mere transporter of rawmaterials to an established exporter of value added and finished leatherproducts. Currently the industry is on an ever increasing phase with optimumutilization of available raw materials and maximum returns from exports. Majorexports comprise of skins and hides such as cow, sheep nappa, goat skin and wetblue. Footwear, leather gloves, garments, handbags, purses, wallets, andbriefcases are some of the products exported.
The post liberalization periodhas bestowed vast opportunities for the Indian leather industry. With globalgiants seeking alternatives for sourcing, India is a shining option. Leadingbrands from EU and US are on their wings to source leather products from India. Realizing the market potential of the country, the Government is making considerableefforts to promote the advancement of leather industries.
Mr Mukhtarul Amin, Chairman,Superhouse Group, while interacting with
Agra, Jalandhar, Kolkata,Chennai, and Kanpur are the major leather hubs of India. The current trendmoves towards sports activities like polo and horse racing with more and morepeople getting involved in it. This offers a good scope for India, in both national and international front. Kanpur is emerging as an unquestionable winner forthe manufacture of high quality horse accessories. There are almost 300 unitsin Kanpur giving a turnover of approximately 120 USD a year. The sportsaccessories manufactured in Kanpur are exported to various internationalcountries like US, Germany, UK, and Australia.
The Kanpur Leather Cluster:
Majority of the output in theleather industry is being contributed by the SMEs clustered in five to sixmajor locations. To enhance their performance, SIDBI has launched a programmethrough Business Development Services (BDS). The project was initiated in 2006,and is being co-funded by the Department for International Development (DFID)in UK, and GTZ in Germany. One of the clusters for the project, the 'Kanpur LeatherCluster' encompasses 1600 SMEs and generates employment for around one lakhpeople contributing Rs. 2, 900 crores of production for a year. Kanpur leather cluster is notable for the processing of buffalo leather and has the creditof being the only center in India for making saddlery items and safety shoeswhich are being exported to foreign markets.
The ultimate quality of theIndian leather combined with efficient craftsmanship has secured a sturdy placefor Indian leather goods in the global market. Indian leather industry isgetting more organized, with a springing capacity for expansion.
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