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

4. Findings

and Analysis

5.

Conclusions

6.

Limitations

7.

Bibliography

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

FINDINGS ANDANALYSIS

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