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    Indian Leather & Footwear Industry: Council For Leather Exports, India

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    Kavitha Shetty
    The document summarizes the Indian leather and footwear industries. It states that India is the 8th largest exporter of leather goods, exporting close to $3 billion in 2005-2006. The leather industry employs over 2.5 million people, mostly women. Major leather and footwear clusters are located in Chennai, Kanpur, Kolkata, Agra, Noida, and Mumbai. Footwear exports reached $606 million in 2005-2006, with a target of $1.2 billion for 2006-2007. The industry supports over 644 member producers and is a major source of foreign exchange.

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    Indian Leather & Footwear Industry: Council For Leather Exports, India

    Uploaded by

    Kavitha Shetty
    238 views34 pages
    The document summarizes the Indian leather and footwear industries. It states that India is the 8th largest exporter of leather goods, exporting close to $3 billion in 2005-2006. The leather industry employs over 2.5 million people, mostly women. Major leather and footwear clusters are located in Chennai, Kanpur, Kolkata, Agra, Noida, and Mumbai. Footwear exports reached $606 million in 2005-2006, with a target of $1.2 billion for 2006-2007. The industry supports over 644 member producers and is a major source of foreign exchange.

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    The document summarizes the Indian leather and footwear industries. It states that India is the 8th largest exporter of leather goods, exporting close to $3 billion in 2005-2006. The leather industry employs over 2.5 million people, mostly women. Major leather and footwear clusters are located in Chennai, Kanpur, Kolkata, Agra, Noida, and Mumbai. Footwear exports reached $606 million in 2005-2006, with a target of $1.2 billion for 2006-2007. The industry supports over 644 member producers and is a major source of foreign exchange.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    238 views34 pages

    Indian Leather & Footwear Industry: Council For Leather Exports, India

    Uploaded by

    Kavitha Shetty
    The document summarizes the Indian leather and footwear industries. It states that India is the 8th largest exporter of leather goods, exporting close to $3 billion in 2005-2006. The leather industry employs over 2.5 million people, mostly women. Major leather and footwear clusters are located in Chennai, Kanpur, Kolkata, Agra, Noida, and Mumbai. Footwear exports reached $606 million in 2005-2006, with a target of $1.2 billion for 2006-2007. The industry supports over 644 member producers and is a major source of foreign exchange.

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    of 34

    Council for Leather Exports, India

    Presents

    Indian Leather
    &
    Footwear Industry
    Presentation at

    INDIAN DELEGATION TO TAIWAN

    31st Aug to 2nd Sep 2006, Taiwan.


    India over the years
    India, predominantly associated with
    Spiritualism, Religion and Ayurveda
    is now increasingly identified with the
    talent potential,viz., IT, BPO,Business
    schools and Manufacturing.

    Consecutive stable democratic governance


    facilitating all round economic growth rendered
    India as a country of choice for the investors
    and the business community.
    Indian Leather Industry

    A traditional leather exporting country. Status


    Changed from a country exporting finished Leather to
    finished products.

    8th Largest earner of foreign exchange for the country.


    Exports during 2005-06 were close to 3 Billion.

    Employs 2.5 million people – mostly women – has huge


    social impact.

    Country has strength in raw material, trained manpower


    and technology.
    Indian Leather Industry … contd

    There are more than 2300 member exporters in the


    Country, situated in clusters in Chennai, Kanpur,
    Kolkata, Agra, Noida and Mumbai.

    90% of raw material for the tanneries are from within the
    country and only 10% are imported. Red Hair
    Sheep skins are known for it’s premium quality.

    24% of the exports are finished leathers (2005-06)

    More than 80% of the colors selected in the MODEUROPE


    are from India.
    Indian Leather Industry …..contd

    Leather exports has touched US $ 606 million


    In 2005-06.

    Strong eco-sustainable tanning technology

    World class institute for Research and Development


    For leather development.

    Presence of support industries like Leather chemicals and


    Finishing auxiliaries are the strength of the industry.
    Aiding the world to put its
    best foot forward
    Indian Footwear Industry

    • Second largest footwear producer after China


    • 2.06 billion pairs produced in an year
    • 16 % of the global production is produced in India
    • Exported 92 Million Pairs (2004-05)
    • Contract manufacturers supply to leading global
    brands
    • 644 Member produces situated as clusters at
    Chennai, Ambur, Ranipet, Kanpur, Agra,
    Mumbai, Delhi and Karnal.
    Major destination markets

    USA EU Countries 63%


    12%

    Hong Kong 10%

    Australia 1.5%

    Others 13.5%
    % share 2004–05

    India’s Export of Footwear UK - 21%


    Germany – 18%
    USA – 12%
    Italy – 11%
    France – 7%
    Spain – 5% 181
    UK
    157 154 155
    146 Germany

    146
    115
    106 108 102
    96 USA
    90 Italy
    95
    88 89
    79
    60
    51 France
    37 Spain
    32
    38 43

    13 20
    in million US$
    2001 - 02 2002 - 03 2003 - 04 2004 - 05
    Product Segments
    Export performance (2004-05)

    Footwear 856
    36%
    Leather 577
    24%

    Garments 319
    Goods 628 14%
    26%
    in million US$
    Decennial Growth of exports of Footwear

    1200

    Footwear is 2005-06, 1035


    1000
    The engine of
    Growth in
    U S $ in m illio n s
    800
    Exports of
    600 1995-96, 594 Series1
    Leather sector
    400

    200 1985-86, 186

    0 1975-76, 23
    1975-76 1985-86 1995-96 2005-06
    period
    Exports 2005-06 and target 2006-07

    2005-06 US $ 1035 millions (92 million pairs)

    2006-07 US $ 1200 millions (115 millions pairs)

    2010-11 US $ 4500 millions (400 million pairs)


    After performing sector specific corrections, the probable
    growth rates that could be achieved – with interventions –
    looks as below;

    2004-05 % 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

    Leather 577.00 0.08 623.16 673.01 726.85 785.00 847.80 915.63

    Footwear 855.61 0.32 1129.41 1490.81 1967.88 2597.60 3428.83 4526.05

    Garments 318.73 0.04 331.48 344.74 358.53 372.87 387.78 403.30

    449.69 0.08 485.67 524.52 566.48 611.80 660.75 713.61


    Goods
    Saddlery 59.64 0.21 72.17 87.32 105.66 127.85 154.70 187.19

    Gloves 118.77 0.12 133.02 148.98 166.86 186.89 209.31 234.43

    2379.45 6980.20
    Footwear Product Mix

    Men Women Children

    Men Women Children


    3% 1998-99
    71% 71% 27%
    27% 3%

    Men Women Children


    7% 2004-05
    61% 71% 32%
    27% 3%
    Global brands
    sourced from India
    Double H
    Acme Justin
    Clarks Marks & Spencer

    ColeHann Nautica

    Deichmann Nike
    Nunn Bush
    Ecco
    Reebok
    Elefanten
    Salamander
    Florsheim
    Stacy Adams
    Gabor
    Tony Lama
    Hasley
    Next
    Hush Puppies
    Bally
    Global brands
    Currently sold in India
    Aldo
    Bally
    Clarks
    Ecco
    Florsheim
    Ferragammo
    Hush Puppies
    Lee cooper
    Lloyd
    Marks & Spencer
    Nike
    Nine West
    New Balance
    Reebok
    Rockport
    Stacy Adams
    Why India for Footwear ?

    • Raw material adequacy


    • Best Tanning expertise
    • Available skilled workforce
    • Increasing capacity of the production units
    • World class institutional support for
    designing & testing
    • Changing product-mix in favor of comfort
    & Ladies shoes from men and formal
    shoes
    • Exports to US has been increasing
    steadily
    in the recent past.
    Labor availability

    • Population between 15 to 59 yrs. is about


    60%
    • 9.1 % of the population unemployed
    • Women comprise more than 50% in
    footwear industry.
    • Work force understands English
    • Adequate social security measures are
    in-built

    Validated by low employee turnover of 4%


    Labor cost &
    cost to the company

    Monthly Wages

    Unskilled USD 60 - 80
    Skilled USD 90 – 120

    Cost of the Social Security Measures;

    Contributions as % of wages
    15% - 17%

    Cost to the Company

    Unskilled USD 70 – 100


    Skilled USD 110 – 140
    Design Capabilities

    Most of the exporters have their own design


    Laboratories. These are buttressed by the

    Central Leather Research Institute,


    Footwear Design Development Institute,
    National Design Center,
    National Institute of Fashion Technology.

    Council for Leather exports also encourages young


    Designers by giving away awards and honorariums.
    General Manufacturing
    Capabilities

    • All types of constructions – (Cemented, Moccasins,


    Opanka, San Crispino, Side wall stitch and Goodyear
    Welted),

    • In house manufacturing of components – Dies, Soles


    (leather and TR), Welts, Heels, Boxes, and Insoles are
    common today as compared to the past.
    Government’s Assistance for
    Infrastructure development

    Government of India has several programmes to


    assist the Indian Leather Industry to develop,
    modernize and increase export of footwear in
    days to come.

    Government is promoting a Public- Private –


    Partnership model for attracting foreign Direct
    Investments and Joint venture Partnerships.
    ) Projected Real Growth in GDP &
    ) Income per Capita: 2005-50 (% PA)
    ) GDP in ) GDP in ) GDP ) Working age
    ) US $ terms) domestic) per capita) population
    ) ) currency) at PPPs
    ) ) or at PPPs
    ) India) 7.6) 5.2) 4.3) 0.9
    ) Indonesia) 7.3) 4.8) 4.2) 0.4
    ) China) 6.3) 3.9) 3.8) -0.4
    ) Turkey) 5.6) 4.2) 3.4) 0.6
    ) Brazil) 5.4) 3.9) 3.2) 0.5
    ) Mexico) 4.8) 3.9) 3.3) 0.4
    ) Russia) 4.6) 2.7) 3.3) -1.1
    ) S. Korea) 3.3) 2.4) 2.6) -0.9
    ) Canada) 2.6) 2.6) 1.9) 0.2
    ) Australia) 2.6) 2.7) 2.0) 0.4
    ) US) 2.4) 2.4) 1.8) 0.4
    ) Spain) 2.3) 2.2) 2.2) -0.7
    ) UK) 1.9) 2.2) 2.0) 0.0
    ) France) 1.9) 2.2) 2.1) -0.3
    ) Italy) 1.5) 1.6) 1.9) -0.9
    ) Germany) 1.5) 1.8) 1.9) -0.5
    ) Japan) 1.2) 1.6) 1.9) -0.9
    ) Source: PricewaterhouseCoopers GDP growth estimates, working age growth from UN
    Footwear & Footwear
    component parks

    • One Footwear park under the Special


    Economic Zone in Chennai to house 25
    production units with a capacity to produce
    250,000 pairs a day is being set up near
    Chennai

    • One Footwear component park – in


    Chennai with a capacity to house about 20
    units each is coming up to tide over the
    footwear component supply demands.
    Footwear components Joint
    Ventures

    Mondial, Italy
    Suolificio Malaspina, Italy
    Fagus, Germany
    Lammertz Industirenadel GmbH,
    Germany
    Texon UK Limited, UK
    Zahonero Virgili SL, Spain
    Obrador Adhesives Internacional SL,
    Spain
    Conceria Virginia, Italy
    Top Fondi, Italy
    Xie zhan Moulds, Dongguan, China
    Council for Leather Exports
    CMDA TOWER II,
    Gandhi Erwin Bridge
    Egmore
    Chennai 600 008
    Tamil Nadu
    INDIA
    www. leatherindia.org
    E mail [email protected],[email protected]

    Phone +91 44 28594367- 71


    Fax +91 44 28594363 / 64
    Opportunity Potential !
    Your partner country
    of choice for sourcing Footwear &
    marketing branded Footwear in
    India

    Thank you all for your time and patience

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