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EXPORT OFEXPORT OFLEATHERLEATHER


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Group Members Roll No.

y Pallavi Bhandarkar 04

y Rutuja Joshi 10y Afsha Ratansi 19

y Nupur Saraf 20

y

Ritika Shetty 24


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INTRODUCTION


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HISTORY


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ProcessBarriers

Strategies

Tariffs

Subsidies


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Export

strategy

Export and freetrade


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ADVANTAGES

AND

DISADVATAGES

OF EXPORTING


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yIndian Leather

Industry Overview

yIndian Scenerio


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Export Potential Of Leather SectoryThe Indian leather industry has made

significant progresses during the pasttwo decades due to strong raw-materialbase and large reservoir of traditionally

skilled and competitive labor force.


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Export Of Leathery Leather goods production capacity is estimated to

be 63 million pieces annually.

y The different types ofLeather Goods andaccessories are manufactured in India

y Most of the units manufacturing leather goods arelocated in Kolkata, Chennai, Mumbai, Kanpur,Bangalore and Pondicherry.


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Raw Material Supplies For Leather Industryy There exists a large raw material base. There is a

population of 194 million cattle, 70 million

buffaloes and 95 million goats.y According to the latest census, India ranks first

among the major livestock holding countries in theworld.

y In respect of sheep with 48 million sheep, it claimsthe sixth position.

y These four species provide the basic raw material

for the leather industry.


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Top Ten Indian Leather Exportersy Tata InternationalLtd.y Florind Shoes Ltd.y Punihani Internationaly Farida Shoes Ltd.yMirza Tanners Ltd.y T. Abdul Wahid & CompanyyHindustan LeverLtd.y Super House LeatherLtd.y RSL Industries Ltd.y

Presidency KidLeatherLtd.


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Indian Leather

Footwear Industry

Indian Leather Goods

Industry


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Indian Leather Garments IndustryyProminence in the Indian leather sector.

yEntered the world market only in the mid-eighties with exports of Rs. 15 crores in 1997-98, account for about Rs. 1530 crore in 1997-98.

yMajor export destination of leather garmentsfrom India is Germany.

yMarket share of about 20%.


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Leather Glovesy India produces about 52 million pairs of industrialgloves annually.

y Indias share in global leather gloves import during2008 was 9.52%.

y Indias export of leather gloves increased from US$118.77million in 2004 to US$ 232.05million in2008, growing at a CAGR of18.22%.

y Indian Leather Gloves are engineered to providelong lasting comfort and protection.


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Export LicensingyDe-reservation of 11 items in leather sector.

yNon-small scale units can manufacture theseitems after obtaining industrial license,which is granted subject to an export

obligation of50%of the production in eachyear.


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National Leather Development Program(NLDP)

y A UNDP assisted NationalLeatherDevelopmentProgramme (NLDP Phase-I)has been executed by the

Department from1992 to 1998.

y UNDP contribution - US $ 17 million.

y

Government of India funding - US $ 11.065 million.y Integrated development.

y The present UNDP allocation towards the SIDE-NLDPis US$ 7.15 million.


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Problems And Constraints InLeather Garment Industry

y Unplanned growth & set-upyLow average unit value realization

y Shortage of properly trained technical manpowery Non-professional attitude of the entrepreneursy Absence of well-developed infrastructural

y Financial constraints and non-professionalfinancial managementy Unprofessional marketing efforts and managementy Non-availability of adequate quality raw materials


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Global Import And Indias Sharey Global import of Leather Goods including Gloves

increased from US$ 10786.59 million in 2004 to

US$ 18034.94 million in 2008y During 2008, the Indias share in the global leather

goods & accessories import is 4.84%.

y The Global import ofLeather Goods includingGloves increased from US$8020.61 million in 2002to US$13675.50 million in 2006

y Indias share remains stagnant at 5.16%.


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Source : World Statistics, ITC, Geneva India's export2002 2003 2004 2005 2006

Global

import

8020.61 9021.89 10773.0

1

12136.2

5

13675.5

0

India's

export

425.40 539.21 585.72 660.17 706.28

% Share

of India

5.30% 5.98% 5.44% 5.44% 5.16%


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Country-wise India's Export

Of Leather And LeatherProducts During The Last Six

Years


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COUNTRY 95-96 96-97 97-98 98-99 99-00 00-01

U.S.A.

295.62 298.75 251.40 252.71 258.24 343.2

1

Germa

ny

400.38 362.88 363.41 364.19 293.59 308.13

U.K.200.93 204.92 219.26 235.79 266.29 271.35

Italy 221.26 182.99 221.53 197.16 165.47 241.06

Spain50.75 46.97 54.96 69.23 66.72 100.88

Hong

Kong

59.46 59.07 53.93 53.26 55.22 98.42

France88.73 72.34 79.01 79.77 84.36 90.84


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Netherlands

38.65 38.48 43.83 49.78 44.17 55.82

Portugal23.70 20.21 31.91 29.39 24.41 37.44

Russia 47.58 30.22 50.99 25.19 27.97 31.49

Denmark 27.81 23.34 21.73 18.82 28.30 28.77

Australia 40.74 36.91 36.83 35.39 31.84 28.44

Sweden 12.70 11.20 12.76 15.40 19.79 25.47

Canada 22.84 19.63 21.69 18.77 21.42 26.71


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Export To Different Countries Direction Wy Its important to studythe export direction wise (inaccordance to sea rout transport ) the pie graph belowexplains the same


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The Graph Below Denotes The Income EarnedBy India In Previous Five Years:


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Export Of Leather And

Leather Products From IndiaApril-march 1999-2000 VIS-

-VIS April-march - 2000-01


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ATEGORY APRIL-MAR1999-2000

APRIL-MAR2000-01

%VARIATION

FINI HED

LEATHER239. 2 381.86 9.23%

LEATHERFOOTWEAR

377.39 384.47 1.88%

FOOTWEARCOMPONENT

215. 9 238. 6 10.67%

LEATHERGARMENT

347.28 460.55 32.62%

LEATHERGOOD 376.52 443.83 17.87%

ADDLERYANDHARNE

34.11 42.72 25.24%

NON-LEATHERFOOTWEAR

14.12 19.50 38.09%

TOTAL 1604.35 1970.98 22.85%

U $rate 43.3327 45.6844


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Strategies For Indian Leather Sectory Shifting of Manufacturing Basey Government Supporty

Strong Production Basey Investment by Large Corporatey New Marketsy New Trendsy D

iverse Marketing Techniquesy Enabling Infrastructurey Fairs and Exhibitionsy Training Facilities


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Strength and

weakness of

leather goods

industry in India


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Major Issues Affecting The Sectory Environmental Issues

y Impact of PETA

y WTO Related Matters

y Cost Escalation

y Chinese Competition


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Conclusion


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