LEATHER INDUSTRY At a Glance

1. LEATHER INDUSTRYAt a Glance Prashant Kumar ray Designer, FDDI, NOIDA Prashant Kumar ray

2. LEATHER INDUSTRYAt a Glance To Know and understand Present Market Position/Situation of the Leather Goods Industry, first this is important to know about the industry. Prashant Kumar ray

3. Following are the Facts about the Leather Industry • The Leather Industry holds a prominent place in the Indian economy. This sector is known for its consistency in high export earnings and it is among the top ten foreign exchange earners for the country. • The Leather industry is bestowed with an affluence of raw materials as India is endowed with 21% of world cattle & buffalo and 11% of world goat & sheep population. Added to this are the strengths of skilled manpower, innovative technology, increasing industry compliance to international environmental standards, and the dedicated support of the allied industries • The leather industry is an employment intensive sector, providing job to about 2.5 million people, mostly from the weaker sections of the society. Women employment is predominant in leather products sector with about 30% share. • Further following are the present strengths and emerging strengths of overall Indian Leather Industry. LEATHER INDUSTRYAt a Glance Prashant Kumar ray

4. 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 Design & Product Development, HRD and R & D.         • Presence of support industries like leather chemicals and finishing auxiliaries  • Presence in major markets – Long Europe experience • Strategic location in the Asian landmass LEATHER INDUSTRYAt a Glance Prashant Kumar ray

5. Emerging Strengths of Indian leather sector • Design development initiatives by institutions and individuals • Continuous modernization and technology up gradation • Economic size of manufacturing units • Constant human resource development programme to enhance productivity • Increasing use of quality components • Shorter prototype development time • Delivery compliance LEATHER INDUSTRYAt a Glance Prashant Kumar ray

6. Emerging Strengths of Indian leather sector Moving towards Leather Goods Accessories Industry and their current market position in India following are the facts and data. India’s export of leather goods & accessories has increased from US$ 706.29 MN in 2006-07 to US$ 1088.09 MN in 2011-12, growing at a cumulative annual growth rate of 9.02%. LEATHER INDUSTRYAt a Glance Prashant Kumar ray

7. Importing Countries of Leather Goods & Gloves 2006 vis-à-vis 2010 – A comparison (Value in Million US$) (Value in Million US$) LEATHER INDUSTRYAt a Glance Prashant Kumar ray

8. Let's Have a look on Graph comparison (Value in Million US$) LEATHER INDUSTRYAt a Glance Prashant Kumar ray These 13 countries together accounts for a share of 77.43% in global leather goods

9. Top Exporting countries of Leather Goods & Gloves 2006 vis-à-vis 2010 – A comparison (Value in Million US$) LEATHER INDUSTRYAt a Glance Prashant Kumar ray

10. Let's Have a look on Graph comparison (Value in Million US$) LEATHER INDUSTRYAt a Glance Prashant Kumar ray

11. Scenario for Leather Goods Leather Goods form an important segment of the leather industry in India. Leather goods production capacity is estimated to be 63 million pieces annually.   The different types of Leather Goods and accessories are manufactured in India i.e., Trunks, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, traveling bags / luggage, Portfolio and similar such items,  Hand Bags, shopping bags and similar such items, Wallets, Purses, Pouches, Passport Holders, Credit Card Holders, Diary covers and similar such items, Leather Belts, Caps etc.  India also produces Leather Upholstery – Sofa Seat Covers, Car Seat Covers etc. LEATHER INDUSTRYAt a Glance Prashant Kumar ray

12. Scenario for Leather Goods Most of the units manufacturing leather goods are located in Kolkata, Chennai, Mumbai, Kanpur, Bangalore and Pondicherry.  Industry is situated in few other clusters also. India is the fifth largest exporter of leather goods and accessories (inclusive of Gloves) in the world. Leather Goods and accessories manufactured in India bear brand names like Coach, Pierre Cardin, Yves St Laurent, Etienne Aigner, GeofferyBeene, Harrods, Marks & Spencer, Liz Caliborne, Guess, Next, Tommy Hilfiger, Kieffer, Waldhausen, Biemen, Nederinum, Zaldi, Kallquists, Shires, GFS, Millers, Eisers, Weco, Ukal and Decalthon. LEATHER INDUSTRYAt a Glance Prashant Kumar ray

13. India’s Export of Leather Goods & Accessories including Gloves – 5 years (Value in Million US$) LEATHER INDUSTRYAt a Glance Prashant Kumar ray

14. India’s export of Leather Goods & Accessories including Gloves touched US$ 1088.09 million in 2011-12, holding a share of 22.35% in India’s total export of US$ 4868.71 MN  • Major Markets The major markets for Indian leather goods & gloves are USA with a share of 18.06%, Germany 15.80%, UK 12.61%, Spain 7.27%, Italy 6.16%, France 5.49%, Netherlands 4.49%, UAE 3.22%, Australia 3.14%, and Denmark 2.56%. LEATHER INDUSTRYAt a Glance Prashant Kumar ray

15. India’s Export of Leather Goods & Accessories – Country-wise – 5 Years (Value in Million US$) LEATHER INDUSTRYAt a Glance Prashant Kumar ray

16. India’s Export of Leather Goods & Accessories – Country-wise – 5 Years – (Value in Million US$) LEATHER INDUSTRYAt a Glance Prashant Kumar ray

17. Quantity-wise Export of Leather Goods (In Pcs.) LEATHER INDUSTRYAt a Glance Prashant Kumar ray

18. Quantity-wise Export of Leather Goods LEATHER INDUSTRYAt a Glance Prashant Kumar ray

19. Region-wise Export of Leather Goods in INDIA (In Pcs.) LEATHER INDUSTRYAt a Glance Prashant Kumar ray

20. Region-wise Export of Leather Goods in INDIA (In Pcs.) LEATHER INDUSTRYAt a Glance Prashant Kumar ray

21. With the availability of quality raw materials coupled with skilled craftsmanship, India is now poised to make itself a major destination for global sourcing of leather goods and accessories. State-of-the-art production units and in-house Design Studios will strengthen the industry in producing products with exquisite design and quality. • The industry’s accelerated development and growth is being aided by the ambitious capacity expansion & modernization plans of private industry and the Indian Government’s encouraging policy measures. LEATHER INDUSTRYAt a Glance Prashant Kumar ray

22. Following Comparisons and data is based on latest research of the Industry. • As per officially notified DGCI& S monthly export data, the export of Leather and Leather products for the period April-January 2012-13 touched US$ 4070.21 million as against the performance of US$ 4122.17 million in the corresponding period of last year, recording a marginal decline of 1.26%. In rupee terms, the export touched Rs.221720.71 million during April-January 2012-13 as against the previous year’s performance of Rs.196045.49 million registering a positive growth of 13.10%. LEATHER INDUSTRYAt a Glance Prashant Kumar ray

23. A Statement showing the Product-wise Export performance during April-January 2012-13 vis-à-vis April-January 2011-12 is given below: LEATHER INDUSTRYAt a Glance Prashant Kumar ray (Value in Million US$)

24. (Value in Million US$) LEATHER INDUSTRYAt a Glance Prashant Kumar ray

25. Major Highlights • In Rupee Terms, export of  finished leather, leather footwear, leather garments, leather goods & accessories, saddler and harness and non-leather footwear have show positive growth. • In Dollar Terms, export of finished leather, leather goods and non-leather footwear have shown positive growth. Declining trend is seen in export of leather footwear, footwear components, leather garments and saddler & harness LEATHER INDUSTRYAt a Glance Prashant Kumar ray

26. Country-wise analysis • The major markets for Indian Leather & Leather Products are Germany with a share of 12.60%,  UK 11.99%, USA 10.67%, Hong Kong 9.03%, Italy 8.92%, France 6.24%, Spain 5.35%, Netherlands 3.94%, China 2.71%, UAE 2.36%, Belgium 1.90%,   Australia 1.50% and Denmark 1.80% • These 13 countries together accounts for nearly 79.01% of India’s total leather& leather products export. • Export of leather & leather products to major markets like USA, UK, Hong Kong, Australia, Denmark, Canada, Japan, China, UAE and Saudi Arabia have shown positive export growth during April-January 2012-13. • Export of leather & leather products to major European markets like Germany, Italy, France, Spain, Netherlands etc have shown declining trend during April-January 2012. LEATHER INDUSTRYAt a Glance Prashant Kumar ray

27. Trend in India’s Export of Leather & Leather Products to different countries during   April-January 2012-13 vis-à-vis April-January 2011-12 LEATHER INDUSTRYAt a Glance Prashant Kumar ray (Value in Million US$) To be continued….

28. Trend in India’s Export of Leather & Leather Products to different countries during   April-January 2012-13 vis-à-vis April-January 2011-12 LEATHER INDUSTRYAt a Glance Prashant Kumar ray (Value in Million US$)

29. Port-wise export performanceAs per the Port-wise / Region-wise compilation for the period April-January 2012-13, export of leather & leather products from Western Region and Eastern Region have shown positive export trends. Export from Southern Region, Northern Region and Central Regions have shown declining trend. LEATHER INDUSTRYAt a Glance Source : DGCIS (Value in Million US$) Prashant Kumar ray Note: This is purely based on port-wise compilation and does not reflect the accurate regional performance: Source: DGCI& S

30. Increasing Percentage of leather Goods from India drives our thinking for the Future Demand and prospects for this Business Thank You LEATHER INDUSTRYAt a Glance Prashant Kumar ray