Abstract

The post liberalization era has opened up a plethora of opportunities for the Indian leather industry. With global players looking for new sourcing options (in addition to China, India stands to gain a bigger share of the global market.Leading brands from the US and Europe are planning to source leather and leather products from India. Global players who participated at the India International Leather Fair, 2005, consider India as the market to be in. The 2006 fair is being designed to focus on the opportunities for sourcing from India. This report looks at the leather industry from both the macro and micro perspectives. At the macro level it deals with international competitiveness of the industry, environmental and regulatory issues like PCP (Pentachlorophenol concentration and concerns on animal rights violations, employment creation, and trade-related details. It also provides information on the micro structure of the Indian leather industry, the major players and foreign collaborations. India has a less than 3% share in the global trade in leather compared to China's 20%. Realizing the growth potential of the leather industry, the Government of India has been making significant efforts to promote rapid advancement of the industry. On June 30, 2005, the Cabinet Committee on Economic Affairs (CCEA) decided to implement a Rs 2.9 billion scheme for the integrated development of the leather sector. Under this scheme, existing tanneries will be modernized and new units will be set up for footwear, components and leather products. This scheme is expected to result in gains in terms of productivity, right-sizing of capacity, cost-cutting, and design-development.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Leather industry, Leather products, Leather garments, Leather footwear, Leather exports, Tannery, Council for Leather Exports, CLE, Central Leather Research Institute, CLRI, Cabinet Committee on Economic Affairs, CCEA, Raw hides and skins ,Semi-processed leather, China, Italy, Bata India, Mirza Tanners, Tata International, Lakhani India, Bhartiya International, Liberty Shoes, Reebok, Leather Technology Mission, National Leather Development Programme, NLDP Phase-I, Small Industries Development and Employment Programme in the Leather Sector, SIDE-NLDP, Indian Leather Development Programme, ILDP, Environmental compliance in leather sector, People for the Ethical Treatment of Animals, PETA, People for Animals, PFA, Cow slaughter ban, PFA, PETA, ILDP, SIDE-NLDP, CCEA, CLRI