Introduction of Leather Industry
Introduction of Leather Industry
Introduction of Leather Industry
ON
SUBMITTED TO
By –
ANAS KARIM
Enrolment. No – A903111421038
DEPARTMENT OF GEOGRAPHY
The Author attests the permission has been obtained for the use of any copyrighted material
appearing in the Dissertation / Project report other than brief excerpts requiring only proper
acknowledgement in scholarly writing and all such use of knowledge.
ANAS KARIM
A903111421038
This is to certify that Mr Anas Karim, Student of B.Sc. Geography (Hons),has carried out work
presented in the offline Research paper entitled ‘Development of Durgapur As A Smart City
as a part of 3rd Semester program of Bachelor of science in Geography (Hon.) From Amity
University Kolkata, West Bengal under my supervision .
Dr.Pallabi Das
Department of Geography
AISSK , Kolkata
ACKNOWLEDGEMENT
I express my sincere gratitude to my faculty guide Dr.Pallabi Das, for her able guidance
,continuous support and cooperation throughout my project ,without which the present work
would not have been possible. My endeavour stands incomplete without dedicating my
gratitude to her. She has contributed a lot towards successful completion of my Ntcc project
work.
I would also like to express my gratitude to my family ,friends for their unending support
,and tireless effort that kept me motivated throughout the completion of this ntcc project.
ABSTRACT
Leather industry in India in all its facets has been an age old traditional industry. It.is labour
intensive and all along remained export oriented. The leather industry of India has its own
reputation world over. In India, uttar Pradesh has the oldest and largest leather industry. Agra
is the largest Footwear production centre in the country.
Kanpur, a city in the state of Uttar Pradesh, holds a major industrial cluster of leather and
leather products manufacturing in India. It consists of mainly small and medium business
enterprises, located at the bank of the Ganga river. These business units have been meeting the
needs of society and economy by generating employments and earning foreign exchanges, but
many industrial surveys reveal that the cluster does not meet the requirement of the first pillar
of sustainability i.e. environment. This study focuses on the SWOT analysis of the cluster in
order to find out appropriate strategies for its sustainable development.
1. To examine the historical context and current state of the Indian leather industry,
3. To critically assess how various government organisations have contributed to the growth
4. To identify the issues, assess the future of the leather sector in Uttar Pradesh, and recommend
workable, financially viable solutions to the issues.
RESERCH METHODOLOGY
LITERATURE REVIEW
Narula, N.K., "Financing Export Transactions"* Lexport Bulletion, published by Council for
Leather Exports, Kanpur, volume - 2, Number - 3, June and July, 1979.
Report on, "upgradation of Decentralised Industries, Leather, Footwear and Brassware in U.P.,
prepared by Prof* R.K. Zutshi, on behalf of Indian Institute of Management, Lucknow, 1989.
Modernisation Guide on Leather and Leather goods Industry. Prepared by. National
productivity Council, Kanpur, for small scale Industries Service Institute, Kanpur. Ministry of
Industries Govt, of India, 1989,
INTRODUCTION OF LEATHER INDUSTRY
The leather business is a very old branch of manufacturing that creates a wide range of
products, including leather bags, leather clothing, and leather footwear. The waste product of
the food business, notably from the processing of meat, is the source of the raw material utilized
in the leather industry. This discarded material is transformed into appealing and practical
leather goods. One of the most traded products worldwide is leather and its byproducts. They
are made using easily accessible, renewable resources. The commerce in leather already
exceeds US$ 80 billion annually, and as populations rise and nations become more urbanized,
this figure is likely to rise.
Humans frequently utilize and consume leather items; they do so virtually daily. Any industry
that processes leather requires waste from the meat industry and slaughterhouses as its main
raw materials. In tanneries, this raw material is transformed into usable leather. As a result, the
tanning sector is regarded as one of the key components of the overall leather processing chain.
Leather Industry in UP
The oldest and largest leather industry in India is located in Uttar Pradesh. Kanpur is a
significant tanning city, while Agra is the country's largest footwear production hub. The
production hub for sandals, chappals, saddlery, and harnesses is located in Meerut, which is
also well-known for producing sporting items.
According to employment and revenue, the leather industry ranks among the most significant
sectors in U.P. This is due to Uttar Pradesh's tremendous resource endowment in this area. In
addition to having the most animals overall, this region.
The production of leather goods, tanning, finishing, and all other aspects of the leather industry
are all labor-intensive in nature, employing thousands of people in the state directly and
indirectly and assisting the country in addressing the chronic unemployment problem.
One of the oldest traditional businesses in Uttar Pradesh is the leather industry. There have
been numerous indigenous tanning businesses/organizations in its villages for a very long time.
While leather footwear was worn in ancient India, organized production of the material only
started in Agra and the surrounding areas during the Mughal era.
The Government Harness and Saddlery Factory was established in Kanpur in 1857, and the
city soon became well-known for producing leather shoes. In Kanpur, two further factories,
Foy Bros (1872) and Allen & Cooper and Co. (1881), were established to produce Army Boots
and Equipment for the army. Although Stuart Tannery in Kanpur, which was established late
in 1900, did not last long, the employees who had received training in structured production
procedures went on to create a number of modest footwear manufacturing firms. During World
War I, they gained further motivation in this regard.
The Govt. Harness and saddlery factory at Kanpur catalyzed the development of its leather
goods Industry, the factory was designed to meet the total demand of the British army in India.
During this period the number of small factories grew to 1000 with nearly a hundred of them
producing 35 to 100 pair s per day. By 1930s almost 50,000 workers were engaged in the
production of about 17 million footwear per year in Agra.
There are currently more than 200 tanneries in concentrated locations like Kanpur, Unnao,
Agra, Meerut, Barabanki, etc., despite the fact that leather tanning is dying out in the state of
Uttar Pradesh.
Kanpur is home to 179 of the 200 tanneries that exist; the others are spread out around the
country. Buffalo hides have been the preferred material for tanneries in the U.P. instead of cow,
goat, and sheep skins.
The footwear industry in Uttar Pradesh (U.P.) is the largest in India in terms of employment,
skilled labor, and production volume. Agra is the country's largest shoe manufacturing hub.
The majority of the shoe industry in Agra is artisanal, and the high output is due to the intrinsic
power of artisanal skill rather than mechanisation.
The majority of the leather used in Kanpur's chappal and sandal production comes from
tanneries located there. The last fitted manufacture of chappals and sandals, which is a
disincentive to this business, has thus far been able to keep piece rated large volume production
at bay. The specialty of Kanpur is industrial and security boot uppers. Heavy and travel leather
goods are also well-known Kanpur products, but the leather-based goods industry has not been
able to advance due to the impact of molded luggage.
Leather saddle toppers, tube well washers, and some hand gloves are among the other leather
goods produced in Kanpur, though not to the same extent as in Calcutta.
Another center in Uttar Pradesh with a high population of shoe workers is Faizabad. About
2000 people work in the shoe industry, largely producing lower-cost models for customers in
semi-rural and rural areas of Western U.P. and Bihar. This product has a consistent market.
The sports leather Goods industry is concentrated at Meerut and around Kanpur in Uttar
Pradesh (U.P). Almost every item required its production is available at Kanpur. The sports
goods commonly made of leather are footballs, basketballs, hockey and cricket balls, gloves
and other protective equipment’s. For the manufacture of fine quality of sheep and goat ‘skins
leather which is not tanned in U.P., manufacturers bank on tanneries in India for their leather.
The picture regarding the leather Industry in U.P. will be clearer with the analysis of the
following facets of the leather industry,
(C) Manufacture of leather goods (Footwear/ Saddlery, Sports goods. Travelling goods,
decorative articles/ etc)
Flaying;
Flaying of animals is basic to leather industry and is essentially a decentralised activity by its
nature.
For raw hides/skins we have to depend on naturally dead animals where as for goat and sheep
skins on slaughtered animals. Eighty per cent of India's populations is spread in over Five Lakh
villagers. The death of animals at a given place is now very significant. Hence flaying of such
dead animals, have necessary to be a decentralized activity. Gandhi Ji remarked about the
flaying skill of village flayers in one of the articles.
The flaying activities in Uttar Pradesh are in no way up to par. Traditional artisans are forced
to move on to other professions by social stigma against flaying labour and meagre pay. The
equipment and accessories used for flaying dead animals are outdated and old-fashioned, and
traditional flayers are not familiar with how to utilise these items safely to prevent injuries.
Since the flayer currently only receives a pitiful sum for flaying animals, he is not very
concerned about the damage to the hides and skins.
Carcass recovery:
It is crucial to collect a corpse as soon as possible since an animal's hide or ski is made up of
60 to 70 percent water by weight, which causes deterioration to start within hours of killing or
slaughtering the animal.
In Uttar Pradesh there is no organized system of carcass recovery and the centres which exist
do not have necessary means to tackle the situation. There is an urgent need for the Khadi and
village industries Board, (KVIB) in consultation with Uttar Pradesh leather Development and
UPLDMC to evolve a programme for the establishment of full-fledged carcass recovery
centres.
By-Production utilisation
The slaughterhouse by-products offer good potential for both domestic and international
markets, which would create jobs, additional income, and significant foreign exchange.
The following list of raw animal by-products and their final products, aside from hides and
skins, can be derived from buffalo, cattle, goats, and sheep.
Raw skins and hides are sent in large quantities outside of the state for tanning. With the
exception of buffalo hides, which transfer about 20% outside the state.
Only in all other categories, such as sheep, goat, and cow hides, do over 70% of the available
hides and skins leave the state to be tanned. The breakdown is as follows.
Animal hides A large portion is sent to Calcutta and a smaller portion to South India and
Madhya Pradesh. Hie outflow can be about between 65 and 70 percent.
The highest 20% of them relocate to Bengali and Bihar Bata tanneries. Over 75% of little
buffalo calf skins of the highest quality are sold.
3. Leather Manufacturers
Footwear Industry:
The footwear industry in Uttar Pradesh (U.P.) is the largest in India in terms of employment,
volume of production, and labour skill content. Agra is the largest shoe manufacturing hub in
both Asia and India, while Kanpur is the world leader in the production of sandals, chappals,
and other footwear.
Modern technology must be introduced into the traditional sector in a way that enables
traditional shoemakers to upgrade their skills.
The majority of the shoe industry in Agra is artisanal, and the high output is due to the intrinsic
strength of the artisan's skill rather than mechanisation.
Agra manufactures around 70,000 pairs of shoe uppers for export daily, while around 5000–
7000 pairs of hand-made shoes are sent daily. 15,000 pairs of hand-made ladies bells shoes are
produced each day. About 12,000 pairs of shoes for Bata, Cornoa, Action, and other brands are
produced daily. Additionally, agents purchase 20,000 pairs of Cottage units daily. Additionally,
agents purchase 20,000 pairs of Cottage units every day. 10,000 pairs per day are provided
under contract to D.G.S., & D. and Security. Agra produces 45000 to 50,000 pairs of complete
footwear every day in addition to 90,000 pairs of export-oriented footwear, including uppers
and shoes.
Leather Garments
India produces a considerable amount of leather for garments. Despite being a major exporter
of textiles.
We are yet beginners in the world of leather clothing. The majority of the 500 small and
medium-sized leather garment manufacturing facilities are located largely in metropolis
centres. Banglore produces around half of the leather clothing shipped from India. In addition
to Madras, Delhi, and Bombay, Bangalore has quickly emerged as a significant source for
leather clothing. The majority of manufacturers produce top-quality goods using the newest
machinery and technology.
India has emerged as a major exporter of hand bags, wallets and small travel goods. Calcutta
had become a major centre for manufacture of these articles. A number of small manufacturing
units are located here. Other centres that have emerged are Kanpur, Bombay, Delhi and Madras
whereas the articles manufactured in Calcutta by and large from cow leather; sheep (lamb)
leather is also used in articles made at Bombay, Madras and Delhi. Manufacture of small leather
goods is in-variably carried out in small units. Each such unit may not employ more than 30-
35 persons on the average. The technology employed is such as to absorb as much labour as
possible. Export of small leather goods from India during 30 1986-87 was 73,93 crores.
The leather industry in Uttar Pradesh is the largest and oldest in the nation. In recent years, the
leather sector has taken on a new significance. Due to the current and significant potential for
export of these goods from the nation and State, the government has designated the leather
industry as its primary focus for exports.
In Uttar Pradesh, the leather industry is essentially dead in its traditional and underdeveloped
state.
Being plagued by characteristics such as waste, low production efficiency, low quality, a small
base of production, lack of diversification, lack of mechanisation, a lack of trained workers,
issues with raw materials, traditional management techniques, financial constraints, and
marketing issues, among others.
The lack of suitable raw materials on the open market, at affordable prices, and at the
appropriate times is a significant issue for the leather industry in Uttar Pradesh. For the business
owners in Uttar Pradesh, the lack of raw materials has led to a dire situation. Numerous plants
were forced to limit their production due to the growing disparity between actual raw material
requirements and actual supply. Unemployment is a side effect of this.
The only exception is buffalo leather, which is sufficiently tanned in Kanpur. for premium goat,
sheep, and cow leather. Calcutta and Madras are essential to the U.P. Units. The leather is
transported by road from Madras and Calcutta to U.P., but due to a poor transportation system,
it travels a long way before arriving.
Small and cottage industry businesses lament the rising cost of basic materials. Prices in Agra
and Kanpur are significantly higher than those in Madras and Calcutta. It is quite challenging
to find good quality leather in Agra and Kanpur in sufficient quantities, at fair prices, at the
appropriate times.
Technology
The market for leather goods is healthy (domestic and international). However, unless we can
increase labour productivity through better production techniques and better quality, it will be
very challenging for us to survive in both the domestic and international markets, which are
fiercely competitive.
The unorganised sector of the economy accounts for the majority of production in Uttar
Pradesh. New technologies must be implemented in the tanning and leather goods
manufacturing processes in order to boost worker productivity and improve quality.
When it comes to small and cottage sector units, there is a severe lack of funding, making it
impossible for them to invest their own money in the introduction of new technology or the
upgrading of existing technology.
The Uttar Pradesh Leather Development and Marketing Corporation must act now (UPLDKC).
The Industrial Development Bank of India (IDBI), Bharat Leather Development Corporation
(BLC), Uttar Pradesh Small Industries Development Corporation (UPSIDC), and others should
step up and offer the support these businesses need to outfit themselves with the newest
technology and prepare for the challenges of the modern era.
Power Plant
The State's leather sector is becoming more automated and mechanised, which makes the
power issue more pressing for business owners. Unreliable power supply and sporadic power
outages have a negative impact on output in terms of both quality and quantity. Due to
electricity issues, the business owners are able to keep to their supply schedules on time.
The state's electricity situation has been worse over the past several years, and several leather
units there are struggling to survive, which is leading to huge layoffs and labour cutbacks.
Up until now, the majority of production has been done in small-scale, cottage businesses run
by artisans. Machine usage has largely been incidental. With
Due to the development of contemporary industry, there is an increasing demand for technical
qualified workers. Such workers are currently in low supply. There are a few training institutes
in the state, but they have been found to be deficient in terms of quality and the number of
trainees they accept. How can we assess the industry's need for trained labour? It is an issue
that has to be resolved with more purpose and urgency.
Labor power
Small and home-based businesses in Uttar Pradesh that produce leather goods and tan leather
are having a variety of labour issues. The need for medical care, education, training, and other
services must be met for the entrepreneurs. The circumstances in which employees are obliged
to do their duties have a direct and indirect impact on how effective they are.
If a worker is uncomfortable, whether or not they are aware of the discomfort, they cannot
perform at their best. In light of the impact that working environments have on employees'
productivity, employers should offer sufficient workspace, sanitary conditions, enough
lighting, ventilation, and other amenities.
Low Productivity
The leather sector in Uttar Pradesh is likewise characterised by low productivity when
compared to international and even national norms, particularly in the production of footwear
and other leather items.
The main reasons for low productivity in Uttar Pradesh's manufacturing facilities for leather
and leather goods are a lack of mechanisation, traditional production techniques, outdated
equipment, operational flaws in equipment, power failure, irregular power supply, and a
shortage of skilled and trained workers.
The majority of units have unfavourable working conditions that put employees' health at risk
and lower productivity. These conditions include inadequate workspace for a variety of
productive tasks, unhealthy working environments, poor lighting, poor ventilation, a lack of
dust and fume control measures, and a lack of sanitary and safety measures.
The majority of Uttar Pradesh's leather tanning and leather goods production facilities struggle
with underutilizing their built capacity. The following are the main obstacles to using the
installed capacity to its full potential.
The lack of enough funding for working capital is the main cause of underutilization or idle
capacity. Operating costs are more significant than initial outlays in the setting up of small and
cottage leather and leather products manufacturing operations because working capital is
substantially more significant than fixed capital.
Another significant obstacle to fully utilising existing capacity is the absence of high-quality
raw materials in sufficient quantities, at fair rates, at the appropriate times, and on the open
market.
Low Quality
The quality of the finished products is a significant issue that the state's leather sector is now
dealing with. The majority of leather items are not produced to appropriate national and
international standards due to a variety of factors.
The careful use of numerous inputs, including materials, methods, machinery, procedures, and
labour, determines the quality of any given product. These elements must, however, work in
concert with the products' desirability and affordability for the various market segments with
varying price points.
Financial Problems
The key to any business action is finance. A timely and appropriate supply of financing is
necessary for an industry to operate smoothly.
Small and cottage industries have been referred to as the economic system's nursery, a key
location for new goods, innovations in technology, and fresh entrepreneurial talent.
Finance is a significant impediment for Uttar Pradesh's leather tanning and leather goods
manufacturing facilities. The majority of business owners criticise the banks, government
agencies, and other money lending organisations for their callous and harassing behaviour.
Due to a lack of funding, the state's tanning and manufacturing facilities for leather goods are
unable to modernise, which results in low labour productivity and inferior items.
Marketing Problems
One of the key elements in an industry's success is marketing; if there is no market for the
goods produced by the company, it will not last for very long.
One of the greatest obstacles to the growth of small, artisanal manufacturing facilities for
leather and leather goods in states is marketing. The various methods of market study, market
research, market intelligence, market segments, consumer reaction, after sale service,
incentives, advertising and publicity, etc., which are presented to them for sustaining
production activities, are rarely adopted by small scale entrepreneurs due to insufficient
investment and limited knowledge.
The state's small and cottage leather and leather goods manufacturing facilities must adhere to
current management principles since only by doing so can quality and quantity be guaranteed.
Since the leather and leather goods sector is an export-oriented one, quality and quantity are
both crucial. There is a huge potential for additional growth in exports, and domestic demand
is also rising quickly as more people are living in cities and their standards of living are rising.
It is crucial to have the following for improved quality and lower production costs:
Quality assurance
Cost management
Central Leather Research Institute (CLRI) Council for Leather Exports (CLE) Bharat Leather
Corporation (BLC) Uttar Pradesh Leather Development and Marketing Corporation
(UPLDMC), U.P. State Leather Development Corporation (UPLDC) Trade Fair Authority of
India (IFTA), State Trading Corporation (STC) and Bureau of Indian Standard (BIC) etc.
Central Leather Research Institute (CLRI) Council for Leather Exports (CLE) Bharat Leather
Corporation (BLC) Uttar Pradesh Leather Development and Marketing Corporation
(UPLDMC), U.P. State Leather Development Corporation (UPLDC) Trade Fair Authority of
India (IFTA), State Trading Corporation (STC) and Bureau of Indian Standard (BIC) etc.
Various human resources development institutions viz; Government leather institute, Kanpur
and Agra H.B.T.I Kanpur & Agra Dayal Bagh Training Centre, Agra, CFTC, Agra,
Government Industrial Training institute, Fatehpur Khadi & Village industrial board (KVIB),
etc. and the Government Leather Testing Laboratory, Kanpur.
CLRI's R & D operations which have been carried out in the above policy environment can
be broadly 2 grouped into the following areas:
i) raw hides and skins and microbiology,
ii) tanning agents and tanning process
iii) by-products
iv) leather finishing
v) leather auxiliaries
vi) foot wear and leather goods
vii) leather machinery and engineering and
viii) tannery effluents and their disposal
The Council for Leather Exports has four regional offices. Kanpur is the location of one of
them. By offering a variety of services to the state's exporters, the Council for Leather Exports
has been playing a significant role in the sector of exports. The organisation arranges buyer
and seller gatherings, supports international trade delegations, and offers details on suppliers
of various leather goods. The council also provides technical staff and designers with training,
as well as hosting seminars and workshops on export-related subjects. The commission also
educates exporters on current trends in clothing.
In order to promote the socioeconomic advancement of those working in the leather industry
generally and the overall growth of the leather industry specifically, the state government of
Uttar Pradesh formed the UPLDMC in Agra in 1974 under the Companies Act 1956. The
Corporation's initial allowed capital investment was one crore rupees, however it was later
increased to five crores rupees.
Government Leather Testing Laboratory, Kanpur
The Laboratory was established in 1954, based on the recommendations of the Phool Singh
Committee, with the expectation that consumers would receive high-quality leather and
leather products from this laboratory, and that state units producing and manufacturing
leather and leather products would be assisted in improving their quality. This laboratory is
critical in the production of leather and leather products to Bureau of Indian Standards (ISI)
specifications.
REFERENCE
• Encyclopedia Britannica, volume - 13, published by. Encyclopedia Britannica, INC,
Chicago, U.S.A., 1987
• Singh, Bachan, "Agra Main Joota Odyog Ka Vikas". Amar Ujala (Hindi), Agra, 28
June, 1990
• Industrial Survey of India, 192 4, quoted from report on, upgradation of Decentralised
Industries, Leather Footwear and Brasswai^ in U.P. prepared by Prof. R« K. Zutshi, on
behalf of Indian Institute of Management, Lucknow, 1988
• Kumar, V» Ambili, "Raw Materia l crisi s of small units" . Yojana, 16-31 March 1990
Gupta, M.C , Entrepreneurship in small scal e Industries * Animal publication . New
Delhi , 1987
• Kashim, M.M., "An Agenda for Action" . The Economic Times, Bombay, 11 August,
1988
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