Indian Sub Continent
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Snapshot of economy and overview of leather industry
The economy of India, measured in USD exchange-rate terms, is the twelfth largest in the world, with a GDP of US $1.50 trillion (2008).It has a GDP growth rate of 9.4% for the fiscal year 2006 - 1007. However, India's huge population has a per capita income of $4,542.
In order to take advantage of the growth dynamics of the Indian economy overall and the leather sector in particular which is growing at between 9% - 10% per year, APLF will launch the Footwear Materials, Manufacturing & Technology (fMM&T) fair to be held at Greater Noida, New Delhi, May 8-10, 2009. |
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Features of Leather Sector in India
- Employs 2.5 million persons.
- A large part (nearly 60-65%) of the production is in the Small/Cottage Sector.
- Annual export value poised to touch about 2 billion US dollars.
- Amongst top 8 export earners for India.
- Endowed with 10% of the world raw material and export constitutes about 2% of the world trade.
- Has enormous potential for future growth.
- Very high value addition within the country.
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For companies intending to exhibit at fMM&T we are providing the following statistics so as to assist in identifying export opportunities to this growing market
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OVERVIEW OF THE LEATHER INDUSTRY |
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PRODUCTS EXPORTED |
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Leather Footwear
Footwear Components (Shoe Uppers, Soles, etc.)
Leather Garments
Leather Goods (Including Harness & Saddlery, Leather Gloves, etc.)
Finished Leather |
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Major Production Centres of Leather and Leather Products |
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Southern Region |
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Tamil Nadu |
Chennai,Ambur, Ranipet, Vaniyambadi, Trichy and Dindigul |
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Andhra Pradesh |
Hyderabad |
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Karnataka |
Bangalore |
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Northern Region |
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Punjab |
Jallandhar |
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Delhi |
Delhi |
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Eastern Region |
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West Bengal |
Kolkata |
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Central Region |
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Uttar Pradesh |
Kanpur and Agra |
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Western Region |
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Maharashtra |
Mumbai |
Estimated Production Capacities
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ITEM |
CAPACITY |
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Hides |
65 million pieces |
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Skins |
170 million pieces |
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Leather Footwear |
909 million pairs |
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Leather shoe uppers |
100 million pairs |
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Non-leather footwear |
1056 million pairs |
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Leather Garments |
16 million pieces |
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Leather Goods |
63 million pieces |
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Industrial Gloves |
52 million pairs |
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Saddlery |
0.10 million pieces |
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A snap shot of recent leather imports for a nine month period:
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India 's Import of Raw Hides & Skins and Leather during April-Dec 2006 vis-à-vis April-Dec 2007 |
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(Value in Million Rs) |
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CATEGORY |
APR-DEC |
APR-DEC |
% Variation |
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2006 |
2007 |
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Raw Hides & Skins |
2219.74 |
2517.34 |
13.41% |
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Leather |
9911.74 |
10200.20 |
2.91% |
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TOTAL |
12131.48 |
12717.54 |
4.83% |
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Source : DGCI & S |
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(Value in Million US$) |
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CATEGORY |
APR-DEC |
APR-DEC |
% Variation |
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2006 |
2007 |
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Raw Hides & Skins |
48.67 |
62.30 |
28.00% |
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Leather |
217.32 |
252.43 |
16.16% |
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TOTAL |
265.99 |
314.73 |
18.32% |
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On an annualised basis import of all types of leather for the whole of the April 2007 - March 2008 fiscal year can be estimated at US$419.64 million.
Exchange Rate: 1 US dollar = 43.20 Indian rupees approximately
Source: Council for Leather Exports http://www.leatherindia.org/ |
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Import Tariffs:
Click on the following link to see a table of import tariffs for the Indian leather industry.
http://www.leatherindia.org/imp_tariff2005.asp Note that there is a zero tariff on almost all raw, semi finished and finished materials imported into India.
fMM&T will be a major launching pad for international tanneries wishing to stake a foothold in the growing Indian leather sector. The fair will enable contacts to be made and cultivated with a view to forming long term business relationships, fulfilling India's demand for quality raw materials to feed its growing production lines.
fMM&T will be organised in conjunction with the Indian Footwear Components Manufacturers Association (IFCOMA http://www.ifcoma.org/ ) and managed by CMP India. |
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If you wish to contribute to the APLF News, with your experiences in the industry, your observations, or general thoughts on the direction the industry is going, we would like to hear from you. Email: aplf-news@aplf.com |
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How long has your company been attending APLF? If you wish to be involved in the celebration of the 25th anniversary of APLF, we would like to hear from you. Email: aplf-news@aplf.com. Subject Headline: APLF 25th Anniversary |
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