Post on 22-Jan-2023
DECLARATION
I here by declare that allinformation selected though thesecondary method is correct inaccordance with the method used;it is very small as compare tothe universe. So it may notapplicable in all case.
Place…………… AAYUSHMAN SINGH Date …………… BBA 6th SEM.
B/11\/001
PREFACE
The Survey report has been conducted on“PROJECT REPORT 0N GROWTH OF LEATHERINDUSTRY”. The purpose of this research& the preparation of this research areto find out the history of the LEATHERINDUSTRIES. This means about its import& export performance, various products,its role in the countries economy, etc..
This survey is carried out to translatethe theoretical knowledge of the subjectinto the practice field work. Thisproject is carried out in the domicalfulfillment of the BBA course of SCHOOLOF MANAGEMENT SCIENCES.
AAYUSHMAN SINGH
ACKNOWLEDGEMENT
Firstly, I am thankful to almighty GOD, whobestowed his choice of blessing on me throughout my life. I, AAYUSHMAN SINGH, student of BBA 6th Sem Of“SCHOOL OF MANAGEMENT SCIENCES, VARANASI”feels a great pleasure in presenting thisfield survey report in the hand of surveysupervisor Mr. RISHI RAMAN. It is really agreat opportunity given by him to me. Thisresearch work is combined effort of manyhearts, hand & brains.
I am immensely grateful Director General Prof.P.N.JHA, SMS VARANASI & again I would like toexpress by deep gratitude and devotion to Mr.RISHI RAMAN (LECTURER), SMS Varanasi for theirPersonal involvement & support without whichthis project would have never been in thelight of this day.
I also want to thank my entire teachers,Staff member & Library member as they gavethere valuable advise & guidance which helpedme to conduct this survey successfully.
I specially wish to thank all my respondentsand friends without their valuable supportthis report wouldn’t have been possible.
CONTENTS SERIAL NO.
PARTICULARS
1.
Introduction of topic
2. Objectives
3.
Methodology
INTRODUCTIONLeather Industry occupies a place of prominence inthe Indian economy in view of its massive potentialfor employment, growth and exports. There has beenincreasing emphasis on its planned development,aimed at optimum utilization of available rawmaterials for maximizing the returns, particularlyfrom exports. Leather industry has been one of thetraditional industries operating in India and isessentially located in certain states, butdispersed as cottage industries in rural areas.Indian leather industry is both in the organized aswell as unorganized sectors. The predominantdecentralized nature and small size makes itdifficult to change this industry. As small scale,cottage and artisan sector account for over 75% ofthe total production it was technologically veryunder developed in design, manufacturing, packing,and logistics. This makes it necessary to becareful while designing solutions for over comingthe weak technological base. The global competitionhas been the major driver that forced the leatherindustry to upgrade its technological base. Thoughtraditionally, the Indian leather industry has beenan exporter of tanned hides and skins, it has, inthe early seventies, set its sights on becoming amajor player in the leather products segments.
Over the period of the last twenty years andparticularly so in the last ten years, it hasbecome the fourth largest foreign exchange earnerin the country. The industry has become an area ofexport thrust with footwear having been identifiedas an area of extreme focus. Exports from theleather sector accounted for 4.4 per cent ofIndia's total exports in 2000-01.The industry usesprimarily indigenous natural resources with littledependence on imported resources. India is endowedwith 10% of the world raw material and exportconstitutes about 2% of the world trade. It employs2.5 million persons. In this paper the case oftransformation of leather production using anInformation and Communication Technology (ICT)platform is presented. The transformation involvesimproving production process, introducing newtechnologies and leveraging the Internet.
Though in absolute terms there is an increase inthe exports of leather products but in percentageterms India’s share in world trade remain around2%. Over the years there has been a tremendousincrease in competition at international level thatis forcing leather industry to be competitive. Allaround the world the industry is getting automatedmaking the whole process fast and leading to highquality end product.
With the use of latest Information Technologieslike Computer Aided Design (CAD) – Computer AidedManufacturing (CAM) there has been huge increase inthe product variety. Also as this industry is
highly fashion dominated there is a continuouschange in the product style. This requirescontinuous monitoring of changes in the customerstyle and specific customer needs.
On the other hand, most of the leather firms are inthe unorganized sector. The small-scale industries,cottage and artisans sector follows old andtraditional methods of manufacture. As productionprocesses are traditional product quality cannotmeet the international standard. The low qualityproduct with limited variety has made many of theIndian leather units non-competitive. Given thenature of the leather industry, moderation ofleather industry requires the following initiativesto make it efficient, agile, responsive andcompetitive namely:
Enhance productivity Reduce wastage Increase the product design Automate the production process
Major production centres:
The major production centers for leather and leather products are located in:
Tamil Nadu - Chennai, Ambur, Ranipet, Vaniyambadi, Trichy, Dindigul
West Bengal – Kolkata Uttar Pradesh – Kanpur, Agra & Noida Maharashtra - Mumbai Punjab - Jallandhar Karnataka – Bangalore Andhra Pradesh - Hyderabad Haryana - Ambala, Gurgaon, Panchkula and Karnal Delhi.
Indian leather sector: A Profile India is the largest livestock holding country A source for 10% global leather requirement Annual production value US$ 5 billion Annual export value US$ 3.47 billion Export growth CAGR 11.91% (5 years) About 2.50 million workforce (30% women) Promising technology inflow and Foreign Direct
Investment Top priority to occupational safety and work
environment Meticulous concern for consumer safety Compliance to environmental standards Enormous potential for future growth (domestic as well
as export)
Estimated production capacities:
ITEM CAPACITY
Hides 65 million
pieces
Skins 170 million pieces
Leather Footwear
909 million pairs
Leather shoe uppers
100 million pairs
Non-leather footwear
1056 million pairs
Leather Garments
16 million pieces
Leather Goods 63 million pieces
Industrial Gloves
52 million pairs
Saddlery & Harness
12.50 millionpieces
Source: CLRI
Strengths of Indian leather sector: Own raw material source – 2 billion sq ft of leather
produced annually Some varieties of goat / calf / sheep skins command
premium position Strong and eco-sustainable tanning base Modernized manufacturing units Trained / skilled manpower at competitive wage levels
World-class institutional support for Human Resources Development and R & D activities
Presence of support industries like leather chemicals and finishing auxiliaries
Presence in major markets – Long Europe experience Preferred sourcing by several international brands –
Pierre Cardin, Versace, NEXT, Hugo Boss, Tommy Hilfiger, Florsheim, Clarks, K shoes, DKNY, Liz Claiborne, Guess etc
Strategic location in the Asian landmass
Emerging strengths Design development initiatives by institutions and
individuals Continuous modernization and technology upgradation Economic size of manufacturing units Constant human resource development programme to
enhance productivity Increasing use of quality components Shorter prototype development time Delivery compliance Growing domestic market for footwear and leather
articles
Government Support – Policies The entire leather sector is now de-licensed and de-
reserved, paving way for expansion on modern lines withstate-of-the-art machinery and equipments.
100% Foreign Direct Investment and Joint Ventures permitted through the automatic route
100% repatriation of profit and dividends, if investments made in convertible foreign currency. Only a declaration to this effect to the Reserve Bank is required.
Promotion of Industrial Parks (one leather park in A.P;one leather goods park in W.B; one footwear park in T.N. and one footwear components park in Chennai)
Funding support for modernizing manufacturing facilities during Tenth Plan period 2002-07
Funding support for establishing Design Studios Duty free import of all types of raw materials Duty-free import of embellishments and components under
specific scheme Concessional duty on import of specified machinery for
use in Leather Sector. Duty neutralization/remission scheme in place like DEPB
and Duty Drawback Liberal import-export of consumer products and
components Gradual lowering of import tariff - Peak Rate 10% Simplified import-export procedures, facilitating
quicker customs clearances
EXPORT PERFORMANCEIndia’s export of leather and leather products for five years
(Value in Million US$)
2003-04
2004-05
2005-06
2006-07
2007-08
Finished Leather 555.71 607.73 636.27 724.00 766.93
Footwear 767.73 910.771045.2
41236.9
11475.8
3
Leather Garments 301.08 329.44 333.30 309.91 343.99
Leather Goods 539.21 585.72 660.17 706.28 784.95
Saddlery & Harness 52.71 61.71 77.52 82.33 105.81
Total2216.4
52495.3
72752.5
03059.4
33477.5
2
% Growth 18.20% 12.58% 10.30% 11.15% 13.67%
Source: DGCI&S
India’s Export was growing at a CAGR of 11.91% in the last 5years. Global leather import trade was growing at a CAGR of 8.77% during last 5 years.
Major importing countries of Indian Leather and Leather Products The country-wise performance for five years:
(Value in Million US$)
COUNTRY 2003-042004-05
2005-06
2006-07
2007-08
CAGRGrowth %
Germany 329.82 350.79 363.24 410.08 488.72 10.33%.
Italy 285.02 258.23 317.04 413.35 479.04 13.86%.
UK 250.65 313.69 345.54 359.84 414.32 13.38%.
USA 251.58 290.42 318.36 317.59 306.69 5.07%.
Hong Kong 226.97 247.68 252.15 279.72 267.93 4.23%.
Spain 161.23 176.70 200.18 185.78 212.07 7.09%.
France 109.82 140.00 143.72 174.04 196.17 15.60%.
Netherlands 57.75 65.68 82.95 100.82 133.37 23.27%.
UAE 37.39 48.03 52.34 62.55 74.53 18.82%.
Portugal 34.07 38.38 42.20 49.92 56.06 13.25%.
Belgium 24.24 35.10 40.20 43.01 54.53 22.46%.
China 22.87 34.51 38.71 42.52 51.90 22.73%.
Australia 32.03 36.41 43.22 39.38 49.74 11.63%.
Denmark 24.66 30.84 40.46 42.30 49.08 18.77%.
Sweden 19.61 23.49 25.82 29.01 38.81 18.60%.
Canada 25.59 29.70 34.80 32.17 35.90 8.83%.
Korea Rep. 25.47 30.98 34.45 36.28 28.80 3.11%.
South Africa 20.64 21.71 24.38 35.23 27.49 7.42%.
Switzerland 16.64 18.35 21.54 21.92 25.47 11.22%.
Austria 19.12 21.23 23.38 21.79 25.43 7.39%.
Greece 21.11 19.53 21.94 24.22 23.38 2.58%.
Saudi Arabia 10.61 12.08 14.63 15.77 15.53 9.99%.
Japan 10.37 10.57 12.37 12.26 15.41 10.40%.
Russia 11.33 8.05 11.49 17.18 14.95 7.17%.
Indonesia 8.42 10.22 12.66 12.17 14.90 15.33%.
Finland 4.23 6.62 7.72 9.87 14.33 35.66%.
Ireland 4.08 5.77 4.56 5.46 8.07 18.59%.
New Zealand 4.22 3.28 5.64 6.05 5.60 7.32%.
Others 166.91 207.33 216.81 259.15 349.30 20.27%.
Total 2216.452495.3
72752.5
03059.4
33477.5
2 11.91%.
Source : DGCI & S
Import Scenario:
India’s import of raw hides & skins and leather for five years
(Value in Million US$)
CATEGORY
2003-042004-052005-062006-07 2007-08
Raw Hides & Skins 49.80 50.21 58.21 69.58 84.12
Leather 171.01 212.70 233.11 288.85 336.56
TOTAL 220.81 262.91 291.32 358.44 420.68
Source: DGCI & SKeeping in view the past performance, current trends in the global trade industry’s in inherent strengths and the growthprospects, the industry aims to augment the production, thereby enhance export to US$ 7 billion by 2010-11. Resultantly, create additional employment opportunities for overall one million people.
The Export targets from 2008-09 to 2010-11 istabulated below: (In Million US$)
Product 2008-09 2009-10 2010-11
Leather 785.00 847.80 915.63
Footwear 2597.60 3428.83 4526.05
Garments 372.87 387.78 403.30
Leather Goods
798.69 870.06 948.04
Saddlery & Harness
127.85 154.70 187.19
Total 4682.01 5689.17 6980.21
INDIAN FINISHED LEATHER INDUSTRYInspiringtheWorld Amongst the major producers of finished leather in theworld, the Indian Leather industry has a long tradition ofsupplying high quality leather for the global market withover 2 billion sq. feet of leather produced annually and thecapacity to fulfill 10 percent of the global leatherrequirement.
The Global import of Finished Leather increased from
US$16506.14 million in 2002 to US$20738.51 million in 2005,growing at a CAGR of 5.87%. India’s share has increased from3.08% to 3.49% during the said period.
(In Million US$)
2002 2003 2004 2005 2006
Global import16506.
1418074.
6419812.
9619879.
8920738.
51
India's export 508.83 555.71 607.73 636.27 724.00
% Share of India 3.08% 3.07% 3.07% 3.20% 3.49%Source : World Statistics, ITC, Geneva India's export, DGCI& S
India’s export of finished leather touched US$ 766.93million in 2007-08, with a share of 22.05% in India’s totalexport. In 2006, India held a share of 3.49% in the globalimport of finished leather.The major markets for Indianfinished leather are Hong Kong, Italy, Germany, Spain,China, Korea Rep, Indonesia, France and Portugal. Nearly73.17% of India’s export of finished leather is to the abovecountries.A Statement showing India’s Export of FinishedLeather to different countries:
(Value in Million US$)
COUNTRY APR-MAR % share % change
2006-07 2007-08 2007-08
Germany 26.16 32.72 4.27% 25.08%
USA 10.71 8.22 1.07% -23.25%
UK 2.69 2.71 0.35% 0.82%
Italy 121.00 133.46 17.40% 10.30%
France 12.07 9.73 1.27% -19.40%
Hong Kong 271.62 256.09 33.39% -5.72%
Spain 22.02 26.61 3.47% 20.84%
Russia 12.31 9.02 1.18% -26.69%
Netherlands 6.22 7.93 1.03% 27.54%
Australia 2.09 2.08 0.27% -0.65%
New Zealand 0.48 0.36 0.05% -25.30%
Denmark 0.47 1.30 0.17% 176.08%
Greece 0.65 0.77 0.10% 19.16%
Canada 1.19 1.92 0.25% 61.29%
Switzerland 0.04 0.24 0.03% 456.82%
Sweden 0.03 0.93 0.12% 3280.80%
South Africa 16.63 12.93 1.69% -22.24%
Austria 0.62 0.90 0.12% 44.46%
Belgium 0.54 0.51 0.07% -4.50%
Japan 5.27 5.74 0.75% 8.88%
Portugal 8.76 12.56 1.64% 43.37%
China 38.86 48.22 6.29% 24.08%
Ireland 0.01 0.00 0.00% -100.00%
UAE 2.82 6.16 0.80% 118.50%
Indonesia 9.57 14.13 1.84% 47.72%
Korea Rep. 34.73 27.62 3.60% -20.48%
Finland 0.49 0.38 0.05% -23.52%
Saudi Arabia 0.23 0.03 0.00% -86.81%
Others 115.72 143.66 18.73% 24.15%
Total 724.00 766.93 100.00% 5.93%
Source : DGCIS
India’s Import of Raw Hides & Skins and Leather fromDifferent Countries
(Value in Million US$)
COUNTRIESRaw Hides & Skins
% Variation
Leather
% Variation
APR-MAR APR-MAR
2006-07 2007-08
2006-07 2007-08
Argentina 0.22 0.62 185.42% 20.55 19.07 -7.23%
Australia 1.94 3.22 66.29% 3.39 4.71 38.84%
Austria 0.01 0.00 -100.00% 1.05 1.13 7.44%
Bangladesh 0.26 0.11 -59.91% 3.47 4.29 23.77%
Belgium 0.16 0.74 371.92% 0.22 0.27 21.66%
Brazil 1.85 1.23 -33.57% 11.97 7.79 -34.89%
Canada 0.00 0.09 5631.95% 0.03 0.07 127.38%
China 0.88 0.66 -25.09% 11.80 12.03 1.94%
Denmark 0.34 0.04 -87.38% 0.66 0.69 4.83%
France 2.59 2.88 11.04% 1.87 3.55 89.74%
Germany 4.88 3.54 -27.42% 8.96 8.05 -10.19%
Greece 0.47 1.08 127.62% 0.29 0.70 141.28%
Hong Kong 0.58 0.15 -73.23% 7.36 7.02 -4.67%
Indonesia 0.30 0.94 215.03% 14.96 12.05 -19.40%
Italy 6.90 5.28 -23.48% 57.51 75.71 31.65%
Kenya 1.74 1.34 -22.68% 5.16 4.94 -4.25%
Korea Rep 0.12 0.19 55.24% 0.98 3.72 280.03%
Nepal 0.52 0.54 4.12% 2.93 4.42 50.90%
Netherlands 4.32 5.80 34.23% 7.64 8.06 5.54%
New Zealand 3.81 9.78 156.80% 8.08 7.68 -4.94%
Nigeria 0.00 0.01 0.00% 0.56 0.23 -58.15%
Norway 1.27 1.63 28.31% 0.04 0.02 -56.46%
Pakistan 0.26 0.43 61.22% 2.59 3.71 43.38%
Saudi Arabia 2.11 2.51 18.73% 27.62 36.12 30.81%
Somalia 1.17 1.00 -14.58% 0.51 0.45 -10.36%
Spain 5.69 5.96 4.68% 12.89 12.73 -1.25%
Sudan 0.06 0.10 64.95% 0.41 1.95 376.51%
Sweden 0.66 0.35 -46.79% 0.21 0.08 -62.65%
Switzerland 0.39 0.38 -2.46% 6.15 4.01 -34.82%
Turkey 0.22 2.52 1044.07% 0.60 1.16 93.56%
U.A.E. 1.15 2.38 107.43% 3.27 6.25 91.23%
U.K. 1.32 1.65 25.32% 8.39 10.08 20.03%
U.S.A 2.41 3.94 63.28% 5.90 3.85 -34.63%
Others 21.00 23.06 9.79% 50.84 69.95 37.60%
Total 69.58 84.12 20.89% 288.85 336.56 16.52%
Source : DGCI&S
Indian Leather Goods & LeatherGloves Industry
Leather Accessories forms an important segment of theLeather Industry in India. Leather Accessoriesproduction capacity is estimated to be 63 millionpieces annually.
The Global import of Leather Goods including Glovesincreased from US$8020.61 million in 2002 toUS$13675.50 million in 2006, growing at a CAGR of14.27%. India’s share remains stagnant at 5.16%.
(In Million US$)
2002 2003 2004 2005 2006
Global import8020.6
19021.8
910773.0
112136.2
513675.5
0
India's export 425.40539.21 585.72 660.17 706.28
% Share of India 5.30% 5.98% 5.44% 5.44% 5.16%
Source : World Statistics, ITC, Geneva India's export, DGCI& S
India’s export of leather goods touched US$784.95million in 2007-08, with a share of 22.57% in India’stotal export. In 2006, India held a share of 5.16% inthe global import of leather goods.
The major markets for Indian leather goods are the USA,Germany, the UK, Italy, Spain, France, Russia,Netherlands, UAE and Australia. Nearly 78.34% ofIndia’s export of leather goods is to the abovecountries.
A Statement showing India’s Export of Leather Goods todifferent countries:
(Value in Million US$)
COUNTRY APR-MAR % share % change
2006-072007-08 2007-08
Germany 100.14 121.56 15.49% 21.40%
USA 128.12 121.37 15.46% -5.27%
UK 113.91 131.53 16.76% 15.47%
Italy 50.76 56.25 7.17% 10.80%
France 31.54 34.89 4.45% 10.62%
Hong Kong 3.06 3.38 0.43% 10.74%
Spain 53.18 59.11 7.53% 11.17%
Russia 0.89 0.94 0.12% 5.88%
Netherlands 31.81 36.11 4.60% 13.51%
Australia 21.79 27.95 3.56% 28.24%
New Zealand 1.41 2.24 0.29% 59.34%
Denmark 13.83 14.81 1.89% 7.05%
Greece 6.99 7.03 0.90% 0.57%
Canada 9.75 12.55 1.60% 28.78%
Switzerland 8.40 10.41 1.33% 23.97%
Sweden 9.24 10.85 1.38% 17.46%
South Africa 5.08 4.53 0.58% -10.82%
Austria 6.22 7.09 0.90% 13.90%
Belgium 11.72 13.53 1.72% 15.46%
Japan 3.01 4.01 0.51% 33.10%
Portugal 2.67 2.68 0.34% 0.51%
China 1.01 0.95 0.12% -5.58%
Ireland 2.36 3.74 0.48% 58.65%
UAE 22.06 25.09 3.20% 13.73%
Indonesia 0.15 0.15 0.02% 0.16%
Korea Rep 0.82 0.42 0.05% -49.21%
Finland 3.49 4.14 0.53% 18.62%
Saudi Arabia 6.99 5.72 0.73% -18.23%
Others 55.89 61.90 7.89% 10.76%
Total 706.28 784.95 100.00% 11.14%
Source: DGCI& S
The different types of leather goods exported fromIndia are Wallets, Purses, Pouches, Ladies Handbags andother bags. Travel/luggage ware, Passportholders/Credit Card holders etc, Portfolio/Briefcases,Leather Belts, Caps & Ties, Diary Covers/Cheque BookCovers, Desktop materials, Covers for Camera,Calculator, Leather toys, Handcrafted leather items,Pet accessories and other leather goods.
Leather Goods and accessories manufactured in Indiaalso bear brand names like Coach, Pierre Cardin, YvesSt Laurent, Etienne Aigner, Geoffery Beene, Harrods,Marks & Spencer, Liz Caliborne, Guess, Next, TommyHilfiger, Kieffer, Waldhausen, Biemen, Nederinum,Zaldi, Kallquists, Shires, GFS, Millers, Eisers, Weco,Ukal and Decalthon.
India is now poised to make itself a major destinationfor global sourcing of Leather Accessories. India’sposition as the fifth largest global supplier ofLeather Accessories is only going to strengthen giventhe availability of quality raw material coupled withskilled craftsmanship.
The Leather Accessories industry’s accelerateddevelopment and growth is being aided by the ambitiouscapacity expansion & modernization plans of privateindustry and the Indian Government’s encouraging policymeasures.
Indian Leather Gloves Industry:
The Global import of Leather Gloves increased fromUS$1368.32 million in 2002 to US$ 1922.29 million in 2006,growing at a CAGR of 8.86%. India’s share has increased from6.58% to 7.18% in 2006.
(In Million US$)
2002 2003 2004 2005 2006
Global import 1368.3
2 1484.1
5 1649.4
2 1817.2
2 1922.2
9
India's export 90.04 136.01 118.77 138.38 137.94
% Share of India 6.58% 9.16% 7.20% 7.61% 7.18%
Indiaproduces about 52 million pairs of leather gloves annually.Leather gloves of all categories like fancy/fashion gloves,sports gloves, industrial gloves and other leather gloves isa thrust product among the items of small leather goodsbeing exported from India.
INDIA’S EXPORT OF GLOVES – DIFFERENTCATEGORIES
(Value in Million US$)
Source : World Statistics, ITC, Geneva India's export, DGCI & S
Category 1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Gloves for Sports
14.62 16.0
4 14.11 11.96 10.50 15.9
0 11.0
711.9
5 10.5
013.6
3
Gloves other than for Sports 4.48
18.17 19.42 11.26 11.63
16.02
7.9010.85 11.2
014.3
1
Gloves for use in Industry
75.13 63.6
0 63.08 62.47 67.91 104.
09
99.80115.58
116.24
155.32
Total 94.2
3 97.8
0 96.61 85.69 90.04 136.
01 118.77
138.38
137.94
183.26
I INDIAN FOOTWEAR INDUSTRY
The footwear sector is a very significant segment of the Leather Industry inIndia.
Footwear is the engine of growth for the entire Indian leather industry andIndia is the second largest global producer of footwear after China, accountingfor 14% of global footwear production. of 14.52 billion Pairs.
India Produces 2065 million pairs of Different Categories of Footwear (LeatherFootwear 909 million pairs, Leather Shoe uppers 100 million pairs and Non-leather footwear 1056 million pairs)
India exports about 115 million pairs. Thus, nearly 95% of its production goesto 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.
Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes,Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber,plastic, P.V.C. and other materials.
MNC Brands sourcedfrom India
MNC Brands Sold inIndia
Indian Brands soldin India
Acme, Clarks, ColeHann, Deichmann, Ecco, Elefanten, Florsheim, Gabor, Hasley, Hush Puppies, Double H, Justin, Marks & Spencer, Nautica, Nike, Nunn Bush, Reebok, Salamander,Stacy Adams, Tony, Lama, Next, Bally
Aldo, Bally, Clarks, Ecco, Florshiem, Ferragammo, Hush Puppies, Lee cooper, Lloyd, Marks & Spencer, Nike, Nine West, New Balance, Reebok, Rockport, Stacy Adams
Red Tape, Bata, Liberty, Khadims, Lakhani, Metro, Action
Nearly 75% of India’s Export of Footwear is to the European Countries and theUSA.
The Indian Footwear Industry provides employment opportunities to a total of1.1 million people, mostly from the weaker sections of the society. Out ofthis, about 0.2 million are employed in the organized sector, 40% of whom arewomen. Remaining 0.9 million people are engaged in unorganized footwear sectorlike rural artisans, cottage and household units etc.
The Footwear Sector is now de-licensed and de-reserved, paving the way forexpansion of capacities on modern lines with state-of-the-art machinery. Tofurther assist this process, the Government has permitted 100% Foreign DirectInvestment through the automatic route for the Footwear Sector.
In
India’s Export of Footwear – Last 10
Years ( Value in Million US$)
Product
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Footwear
575.49 606.60638.57655.35625.25767.73910.77
1045.241236.9
1
1475.83
Growth 7.05% 5.41% 5.27% 2.63%-4.59%22.79%18.63%14.76%18.34%
19.32%
Source: DGCI&S
India’s Footwear Export Growth over the last Four Decades
F Footwear export has increased from US$40.15 million in 1977-78 to US$ 1475.83million in 2007-08
Chart showing Global Import of Footwear Vs India’s Export of Footwear
In
India’s Exports of Footwear – Country-wise Share in Total Exports (2007-08) –Source: DGCI& S
Major Markets for Indian Footwear:
The European Union and the USA are the major markets for Indian Footwearaccounting for 79.95% and 9.22% share respectively in India’s total footwearexport. The major markets for Indian Footwear are Germany 16.66%, UK 16.31%,Italy 15.32%, USA 9.22%, France 7.81%, Spain 5.10%, Netherlands 4.91%, Portugal2.50%, UAE 2.48% and Denmark 1.18%. These 10 countries together accounts fornearly 81.49% of India’s total leather products export.
Indian Footwear Industry - A Vision Document 2010
Footwear is the engine of growth of the leather industry, currently accountingfor an export value of US$1212 million, holding a major share of 41% in India’stotal leather trade. Considering this fact, we have set an ambitious target ofUS$ 4.5 billion in respect of Footwear export from India by 2010-11 where theoverall export of leather products will reach US$6.98 billion, wherein footwearalone will account for a share of 65% in India’s total leather export trade.
Current Export of Footwear and Projections by 2010-11
Investment Opportunities:
The Government of India is keen to promote investments into the Indian leathersector, and for this purpose, it has radically simplified and rationalized thepolicies, procedures and regulatory aspects.
The current industrial policy is very conducive to the promotion of Indianleather industry both in terms of domestic trade as well as exports.
Taxation:
India has a well developed tax structure. Income tax, Customs duties, Central Excise, Sales Tax and Service tax are the
main taxes levied by the Central Government VAT, Stamp duty, State Excise, Land Revenue, Tax on professions are the
principal taxes levied by the State Governments Local Bodies are empowered to levy tax on properties, octroi and for utilities
like water supply, drainage etc.
Corporate Tax is currently taxed at:
30% in the case of domestic companies and surcharge @ 10% of tax
40% in the case of foreign companies and surcharge @ 2.5% of tax
o .
India's Leather Garments Industry Leather Garments forms a significant segment of the
Leather Industry in India. Leather Garments productioncapacity is estimated to be 16 million pieces annually.
The Global import of Leather Garments declined fromUS$4232.43 million in 2002 to US$3739.77 million in2006. India’s share has increased from 6.43% in 2002to 8.26% in 2006.
India’s export of leather garments touched US$343.99million in 2007-08, with a share of 9.89% in India’stotal export. In 2006, India held a share of 8.29% inthe global import of leather garments.
A Statement showing global import of leather garments,India’s export and share during the last 5 years is givenbelow:
(In Million US$)
2002 2003 2004 2005 2006
Global import4232.4
34192.4
34004.8
33818.4
43739.7
7
India's export 272.08 301.08 329.44 333.30 309.91
% Share of India 6.43% 7.18% 8.23% 8.73% 8.29%
Source : World Statistics, ITC, Geneva India's export, DGCI& S
The major markets for Indian leather garments are theUSA, Germany, the UK, Italy, Spain, France, Denmark andNetherlands. Nearly 80.27% of India’s export of leathergarments is to the above countries.
A Statement showing India’s Export of Leather Garments todifferent countries:
(Value in Million US$)
COUNTRY APR-MAR % share % change
2006-07 2007-08 2007-08
Germany 53.41 68.78 19.99% 28.78%
USA 36.72 27.74 8.06% -24.46%
UK 22.51 23.09 6.71% 2.59%
Italy 52.63 58.31 16.95% 10.80%
France 23.43 27.10 7.88% 15.63%
Hong Kong 0.53 1.00 0.29% 90.88%
Spain 42.95 47.58 13.83% 10.78%
Russia 0.03 0.23 0.07% 570.65%
Netherlands 10.83 11.25 3.27% 3.88%
Australia 1.18 1.91 0.55% 61.44%
New Zealand 0.35 0.10 0.03% -72.70%
Denmark 11.34 12.32 3.58% 8.62%
Greece 4.38 4.45 1.29% 1.65%
Canada 8.51 8.94 2.60% 5.02%
Switzerland 2.74 2.41 0.70% -12.15%
Sweden 7.04 8.62 2.51% 22.49%
South Africa 0.82 0.82 0.24% -0.54%
Austria 2.40 2.54 0.74% 5.71%
Belgium 5.16 5.11 1.48% -1.10%
Japan 0.70 0.89 0.26% 26.03%
Portugal 3.32 3.93 1.14% 18.44%
China 0.11 0.09 0.03% -21.28%
Ireland 0.10 0.17 0.05% 68.11%
UAE 1.91 5.37 1.56% 180.75%
Indonesia 0.01 0.00 0.00% -100.00%
Korea Rep. 0.11 0.22 0.06% 100.19%
Finland 1.21 1.00 0.29% -17.40%
Saudi Arabia 0.07 0.06 0.02% -18.64%
Others 15.39 19.99 5.81% 29.89%
Total 309.91 343.99 100.00% 11.00%
Source : DGCIS Major brands like Pierre Cardin, Tommy Hilfiger,
Versace, DKNY, Hugo boss, Liz Claiborne, Ann Taylor,Nautica, Kenneth Cole, Charter Club, Daniel Hector aresourced from India.
The different types of Leather Garments exported fromIndia are jackets, long coats, waist coats/shirts,pant/shorts, motorbike jackets, industrial leathergarments and leather aprons. The above varieties arefor gents, ladies and children.
India is now poised to make itself a major destinationfor global sourcing of Leather Garments. India’sposition as the fourth largest global supplier ofLeather Garments is only going to strengthen given theavailability of quality raw material coupled withskilled craftsmanship.
The Leather Garment industry’s accelerated developmentand growth is being aided by the ambitious capacityexpansion & modernization plans of private industry andthe Indian Government’s encouraging policy measures.
Indian Saddlery & Harness Industry
Rein in Style With India positioned as the third largest exporter ofSaddlery & Harness to the world, Indian Saddlery and Harnessproducts are gaining an ever-increasing recognition in thehighly competitive global saddlery & harness leather arena.The Indian Saddlery and Harness industry is now becomingglobally competitive and brand dominated, awash with designsand The Global import of Saddlery & Harness increased fromUS$505.81 million in 2002 to US$914.58 million in 2006,growing at a CAGR of 15.96%. India’s share has increasedfrom 8.63% to 9.00% in 2006.
(In Million US$)
2002 2003 2004 2005 2006
Global import 505.81 605.19 714.10 825.50 914.58
India's export 43.66 52.71 61.71 77.52 82.33
% Share of India 8.63% 8.71% 8.64% 9.39% 9.00%
Theestimated annual production capacity for the production ofSaddlery & Harness is 12.50 million pieces.
India’s export of Saddlery & Harness touched US$ 105.81million in 2007-08, with a share of 3.04% in India’s totalexport. In 2006, India held a share of 9.00% in the globalimport of Saddlery & Harness.
The major markets for Indian saddlery & harness are the USA,Germany, UK, France, Netherlands, Sweden, Spain, Italy andAustralia. Nearly 80.16% of India’s export of saddlery &harness is to the above countries.
Source : World Statistics, ITC, Geneva India's export, DGCI & S
A Statement showing India’s Export of Saddlery & Harness todifferent countries:
(Value in Million US$)
COUNTRY APR-MAR % share % change
2006-07 2007-08 2007-08
Germany 13.15 19.74 18.66% 50.16%
USA 14.89 13.36 12.62% -10.27%
UK 12.54 16.23 15.34% 29.43%
Italy 2.84 4.91 4.64% 72.82%
France 7.18 9.21 8.70% 28.29%
Hong Kong 1.11 0.46 0.44% -58.56%
Spain 3.07 3.54 3.35% 15.39%
Russia 0.14 0.08 0.08% -43.63%
Netherlands 3.39 5.59 5.28% 65.05%
Australia 4.20 5.34 5.05% 27.29%
New Zealand 0.69 1.50 1.42% 118.84%
Denmark 1.99 3.23 3.05% 61.84%
Greece 0.19 0.29 0.27% 50.54%
Canada 1.82 2.08 1.96% 14.48%
Switzerland 0.16 0.26 0.25% 63.28%
Sweden 4.71 6.36 6.01% 35.08%
South Africa 0.59 0.67 0.64% 14.77%
Austria 0.29 0.52 0.49% 78.68%
Belgium 2.38 4.51 4.26% 89.14%
Japan 0.19 0.14 0.13% -25.77%
Portugal 0.14 0.04 0.04% -73.44%
China 1.47 0.36 0.34% -75.31%
Ireland 0.65 1.23 1.17% 90.59%
UAE 1.12 1.31 1.24% 17.25%
Indonesia 0.01 0.00 0.00% -51.47%
Korea Rep. 0.03 0.05 0.05% 66.14%
Finland 1.05 1.94 1.83% 85.13%
Saudi Arabia 0.03 0.05 0.05% 83.51%
Others 2.33 2.80 2.65% 20.20%
Total 82.33 105.81 100.00% 28.53%
India's Leather Garments Industry
The Global import of Leather Garments declined fromUS$4232.43 million in 2002 to US$3739.77 million in
2006. India’s share has increased from 6.43% in 2002to 8.26% in 2006.
India’s export of leather garments touched US$343.99million in 2007-08, with a share of 9.89% in India’stotal export. In 2006, India held a share of 8.29% inthe global import of leather garments.
A Statement showing global import of leather garments,India’s export and share during the last 5 years is givenbelow:
(In Million US$)
2002 2003 2004 2005 2006
Global import4232.4
34192.4
34004.8
33818.4
43739.7
7
India's export 272.08 301.08 329.44 333.30 309.91
% Share of India 6.43% 7.18% 8.23% 8.73% 8.29%
Source : World Statistics, ITC, Geneva India's export, DGCI& S
The major markets for Indian leather garments are theUSA, Germany, the UK, Italy, Spain, France, Denmark andNetherlands. Nearly 80.27% of India’s export of leathergarments is to the above countries.
Companies
Arkay Leathers (P) Ltd.
It is vertically oriented and professionally managed group, involved in Manufacturing, Export, Trading and Sourcing of Finished Leathers and Leather Garments.
Bhojwani Enterprises
Bhojwani Enterprises a leading manufacturer of Gift Items isa force to reckon with in the field of manufacturing a variety of leather items. We are based in Mumbai.
EXOTIC FASHIONS PVT. LTD
Exotic Fashions Pvt. Ltd is one of leadig manufacturer and exporter of Back Pack and Rucksacks, Ladies Bags, Shantiniketan Products, Folios and Organizers, Briefcases, PDA, Pen and Cigar Cases, Gents and Ladies Wallets, Travel Bags, Small Accessories, Shantiniketan Bags and Wallets.
Eastern Leather Company
They are manufacturing Full / Semi Chrome, Resin / Glazed upper, Linings, Milled, Mesh with Glaze and mate finish as
well as Aniline / Semi Aniline and Resin Sheep Nappa, Sheep Suede's and Buffalo Aniline finished softy for Garment and upholstery purposes
Edcons Chambers
Engaged in exporting of leather goods which includes ladies bags, wallets, travel bags and ruck sacks.
Farida Group
Established in the year 1957 by late Mr.Mecca Haji Abdul Majid Sahib at Ambur, Vellore District, Tamilnadu, in India,the Group has expanded and diversified its activities and currently controls the operations through two tanneries and six full-fledged shoe factories apart from other trading companies.
Hansa Ledermann
The company Hansa was established in the year 1976, a well reputed name known world wide as tanners, manufacturers and exporters of finished leather, leather garments and leather products backed with German Technology. This group of industries is a registered export house almost since three decades and has owned more than 17 awards from Central and State Government for excellent export performance in the field of leather.
Harman Sales Pvt. Ltd.
Harman Sales Pvt. Ltd. The main objective of the company is to serve FOOTWEAR and LEATHER GOODS industries, and LEATHER sector in general by sales and After-sales-Service of MACHINERY, EQUIPMENT, RAW MATERIALS, SPARES AND LEATHER FOR AUTOMOTIVE APPLICATIONS AND BELTS.
Indian Buff Manufacturing Company
Indian Buff Manufacturing Company is the India 's leading Buff Manufacturer with experience of over 45 years in this field.
Inma Enterprises
The Syed Family has been one of INDIA's formost leather families with three generations seeped in the intricacies ofthe business. Each of the family members plays a different role in this business first of all Syed Ahmed Ali.
ImportersStanley Seating
Stanley Seating is the country's largest importer and stockist of genuine leather upholstery. We are an ISO 9001 certified manufacturing organisation and are the leading OEMto major car manufacturers.
Exporters
Leatherman
Leather-man is a manufacturing cum export unit renown fortheir quality. Their product portfolio includes a wide rangeof high quality leather goods and accessories. Along withtheir sister concern Zeniss Arts, established in 1972, theysupply niche European markets. Leather Man is a registeredentity, recognized by the Council of Leather Exports (CLE)and an autonomous body, under the Government of India.
Acknit Knitting Limited
Acknit Knitting Limited was incorporated in 1990 in Indiafor manufacturing and export of Seamless Hand Gloves tovarious countries in the World. Acknit has now emerged as aleading Exporter in India.
Acme Exporters
Acme Exporters, established in 1984 manufactures highquality finished goods. It has established a name for itselfin the manufacture of Leather Accessories and IndustrialSafety Apparels.
Ajanta Leather Fashions Limited
Established in 1976, it is one of India's most reputedmanufacturers and exporters of exquisite leather bags,briefcases and small leather goods.
Akbari Exports
Manufacturer and exporter of leather products such asleather purses, wallets, office bags, leather belts, key
pouches, key holders, card holders, unique leather bags, ladiesleather purse and other leather promotional items.
Alfa Impex Tanning Industries
Alfa Impex Tanning Industries was incorporated in the year1994. We are exporters of all kinds of leathers. We are oneof the major suppliers of cow Leather to Leading exportersof Shoes in India.
Alisha Clothing Pvt. Ltd
Alisha Clothing, a company established in 1990, manufacturesand exports leather garments. It has been in operation forthe last 10 years and has offices in Austria and Denmark. Ithas recently expanded into textiles and acquired additionalfloor space of 4000 Sq Ft.
Anandani Exports
Anandani Exports is one of the leading house of exclusiverange of Readymade Garments. Started in year 1989, thecompany is continuously rising on the growth chart andsetting very high quality standards.Their products areLadies Garments, Gents Garments, Children's Garments,Leather Goods and Textiles
Anira Exports
Anira Exports is a leather handbags division of Chandan ExportCorporation; a Government recognized export house designingand producing leather footwear in excess of one millionpairs per annum from last 25 years.
Ansar & Co.
Ansar and Co is one of the manufacturers and wholesalesuppliers of leather garments, finished leather, leatherbags, purses, safety shoes, portfolio, briefcases and otherleather & finished leather products.
SuppliersA.S. Enterprises
We have a leather goods and soft luggage factory with an experience of manufacturing over 11 years. We cover the domestic and export market.
Ajanta Leather Fashions Limited
Established in 1976, it is one of India's most reputed manufacturers and exporters of exquisite leather bags, briefcases and small leather goods.
Alfa Impex Tanning Industries
Alfa Impex Tanning Industries was incorporated in the year 1994. We are exporters of all kinds of leathers. We are one of the major suppliers of cow Leather to Leading exporters of Shoes in India.
Alpha Overseas International Pvt. Ltd
Manufacturer and supplier of leather garments for men, womenand children.
Ansar & Co.
Ansar and Co is one of the manufacturers and wholesale suppliers of leather garments, finished leather, leather bags, purses, safety shoes, portfolio, briefcases and other leather & finished leather products.
Ansar and Company
Ansar and Co is one of the manufacturers and wholesale suppliers of leather garments, finished leather, leather bags, purses, safety shoes, portfolio, briefcases and other leather & finished leather products.
Arora Vinyl Pvt. Ltd. Arora Vinyl Pvt. Ltd. is one of the leading manufacturers of"PVC leather cloth" in India since its inception in 1995.
Arun New Era Overseas
Arun New Era Overseas as leading manufacturers, suppliers and wholesale exporters of leather journal in India. The range of leather journal includes leather bound journal, leather writing journal and custom leather journal.
CLASSIQUE
CLASSIQUE are specialist suppliers of quality corporate gifts and incentive products fashioned from a choice leathers items to fine writing instruments to clocks, watches umbrellas, etc all of which are of the highest standard and can be imprinted, embossed or laser etched with your company's logo
Crescent Tannery
Crescent Tannery is a renowned entity in the manufacture, export, supply of a plethora of leather goods. Some of its most sought-after items include wallets, organizers, flight bags and other items of leather.
TOP RANKING COMPANIES
Oriental Exports - Exporter of leather,
granite & food products
Oriental Traders - Leather products
exporter
P&G Enterprises - Leather garments
exporter
Pristine Leather Fashions - Exporter of
leather bags & industrial gloves
Sadh - Buying agent for leather products
Select Marketing - Leather gifts and
products exporter
Singhvi International - Exporter of
leather hand gloves, aprons & dried flowers
Star Hide - Exporter of leather goods
Sun Agency - Manufacturer of semi-finished
leather
T Abdul Wahid - Leather tanners and shoe
manufacturer
Tex xpressions - Leather sourcing, product
design and development
XL Enterprises - Manufacturer of leather
portfolios, bags, organizers etc
Yeti Leather - Manufacturer of leather
bags, walletsHasan Leathers - Manufacturer
of finished leather
Hi Fashion - Leather goods exporter
Imaan Impex - Buying and selling of
leather, garments, goods and shoes
Impressive Exports - Leather goods
exporter
Itco Group - Manufacturer of leather
gloves
Iyagri Impex - Manufacturer of chamois
leather
KAG Exports - Exporter of leather
products
Kabir Leathers - Leather apparel, jackets
& bags
Kamal International - Manufacturer of
leather goods
Launch Pad - Manufacturer of leather
cellphone cases
Lexus Exports - Leather wallets, purses,
pouches and handbags exporter
Mercury Exports - Manufacturer of leather
garments, accessories & jackets
Mi Vindchy - Leather garments
manufacturer
Modern Overseas - Leather tannery and
garments manufacturer
Ocean Overseas - Leather goods
manufacturer
Acknit Knitting - Hand gloves and leather
garments manufacturer
Acme Exports - Leather wallets, passport
holders and purses
Ah Yin Tannery - Finished leather
products manufacturer
Ajanta Leather Fashions - Manufacturer of
leather bags, briefcases and other
leather items
Ansar & Co - Offers leather jackets, dog
leashes, ladies bags etc
Arkay Leder Fashions - Leather garments
and goods
Art leather Exports - Leather garments
manufacturer
Asian Adores - Soft luggage and leather
gifts manufacturer
Bilal Hussain - Manufacturer of finished
leather & garments
Crescent Tannery - Leather bags and
garments maker
DRG Leather Cloth - PVC leather cloth
manufacturer
Da Milano - Leather portfolios, bags &
accessories
EGI Leather - Leather bags and wallets
exporter
Farinni - Manufacturer of leather bags
OBJECTIVES
1. To know the history of leather
industry.
2. To know the total revenue arises from
leather industry India.
3. To know the export and import
performance of leather industries in
India.
4. To know the leather industries share
in the Indian economy.
5. To know the various leather products in India..
RESEARCHMETHODOLOGY
TYPES OF RESEARCH:- Descriptive type research
SOURCES OF DATA:- Secondary data
STATISTICAL CALCULATIVE TOOLS:- Average and percentage
STATISTICALS REPRESENTATIVE TOOLS:- Pie chart, Bar diagram and Charts
GLOBAL IMPORT AND INDIA’S EXPORT
AS THE ABOVE GRAPH SHOWS
By 11.91% export of the country is increasing year by year.
Conclusion From the above graph we can concludethat export of the country isincreasing rapidly.
EXPORT OF VARIOUS LEATHER PRODUCTS
\
AS THE ABOVE GRAPH SHOWS
11.91% is the growth in the export of abovegiven leather products.
CONCLUSION
leather product is increasing very quickly.TOTAL EXPORT
AS THE ABOVE GRAPH SHOWS
By 11.91 % the export of India isincreasing.
CONCLUSIONFrom the above given graph it is clearthat the export of India is rising veryquickly.
GROWTH PERCENTAGE
AS THE ABOVE GRAPH SHOWS
11.91% is the growth percentage ofthe decade which is calculated from thedata found.
CONCLUSION From the above graph itn is clear thatgrowth of export fall down during starttime but it again started climbing afterfew years.IMPORT OF LEATHER & LEATHER PRODUCTS
AS THE ABOVE GRAPH SHOWS8.77% is the growth percent of theimport of leather product in India.
CONCLUSION
From the above graph it is clear thatthe import of India is risingcontinueously .
TOTAL IMPORT
AS THE ABOVE GRAPH SHOWS 8. 77 % is the growth rate of theincrease in the import of variousleather products in India.
CONCLUSION
From the above graph it is clear thatthe import also increases with theincrease in the time.
CONCLUSION
By collecting various data i have found thatleather industries play very vital role inthe life of human beings and economy.
1.It helps a lot to know the history ofthe leather industries of India.
2.It helps a lot to the economy byspreading the feet of the Indian economyin the global market.
3.It helps a lot to the human beings by providing a lot of goods i.e. , footwear, garments, etc.
4. It has share about 2.62% in the global leather trade
4.Government also provides lot of policies and plans for the developmentof leather industries
6. 11.91% is the growth rate of export &8.77% is growth rate
LIMITATION
1.Preparing research report is a timeconsuming process and need a lot ofpatience and analyzing of the facts.
2.It has a lot of chances of bias.
3.It may not be considered fully correct.
4.Lack of proper knowledge about methodsof collection of data creates a lot ofproblem.
5.Sometimes industries and companies alsomislead by providing false data.
6.Wrong data collection though thesecondary processes.
BIBLIOGRAPHYREFERRED BOOK:-
1. Methodology research in social sciences
Dr. Krishna swami
2. Research Methodology
C. R. Kothari (2nd
revised edition -2004)
3. Statistics
Dr. S. P. Gupta (31st revised edition 2002 )
WEBSITE PREFERED:-
www.superhouse.com www.leatherindustries.com www.clri.com www.footwear.com