Professional Documents
Culture Documents
Leather
Leather
Leather
Product Presentation
Leather Industry
Indian leather Products/Goods
Introduction
Indian Leather
In view of its immense potential for employment, growth and exports, leather industry occupies an important place in Indian economy. The sector is spread across the formal as well as informal sectors and produces a comprehensive range of products from raw hides to fashionable shoes. The industry consists of firms in all capacities, including small artisans to major global players. Specialized institutions have been setup to promote the overall growth and performance of the industry. There has been an increasing emphasis on the planned development of industry, which is aimed at optimum utilization of available raw materials for maximizing the returns, especially from exports.
Some of the important leather products exported by India include Leather Footwear Footwear Components (Shoe Uppers, Soles etc.) Leather Garments Leather Goods (Including Harness & Saddlery, Leather Gloves etc.) Finished Leather
Sourcing Hubs
Predominantly, most of the manufacturing units for leather goods are located in cities like Kolkata, Chennai, Mumbai, Kanpur, Bangalore and Pondicherry. Kanpur is popularly known as the Leather City of the World. Kanpur leather traders export leather goods in large volumes throughout the world. These massive amounts of leather products are shipped to New Delhi and other major cities in India by the Kanpur leather traders. From these places, they are exported to other nations of the world. Kanpur leather traders are involved in manufacturing, exporting, and supplying of all types of finished leather products.
Ahmed added that though the industry is witnessing 13-15 per cent growth at present, this pace may slow down in the months ahead due to the crisis in western markets. Their (western) economies are weak and purchasing power is becoming weaker, said Ahmed. About 80 per cent of Indias leather exports go to the US and Europe. The main markets are Germany (14 per cent), UK (13 per cent), USA (nine per cent), Italy (11.6 per cent), France (17 per cent) and Spain (16.25 per cent). The way to earn more profit is to make sale in large quantities and to sale in large quantities the price should be minimum and competitive as well. Therefore, the only make maximum profit is to give the best to the customers at the lowest possible price, which will eventually increase the sales volume as well as the demand for the product in the industry or the world trade.
Particulars
Raw Material Cost Labor Cost Overhead Cost Prime Cost Administrative Office Overheads 5,000 X 1 Packaging and Labeling Cost or Production Profit Margin (25%) EX WORK PRICE (EXW) Forwarding Expenses Documentation Export Credit Insurance Misc/Inspection Expenses 5,000 X 0.50 2,500 2,000 3,000 2,500 42,500 5,000 X 1 5,000 5,000 5,000 X 20 5,000 X 10 5,000 X 2 1, 00,000 50,000 10,000
1, 60,000
1, 70,000
2, 12,500
2, 22,500
Target Markets
Germany, USA, UK, Italy, France, Hong Kong, Spain, Russia, Netherlands, Australia, New Zealand, Denmark, Greece, Canada, Switzerland, Sweden, S. Africa, Austria, Belgium, Japan, Portugal, China, Ireland, Finland, Korea Rep., Indonesia, UAE, Arabia, Saudi, etc.
Major Markets for India's Export of Leather Export of Leather Products (2000-01 to 2004-05) Country USA Germany UK Italy Hong Kong 2000-01 342.78 307.17 270.09 241.07 98.32 2001-02 286.89 304.46 248.89 263.11 121.43 2002-03 246.44 272.53 24096.00% 25592.00% 16570.00% 2003-04 251.58 329.82 250.65 285.02 22697.00% 2004-05 279.7 336.69 299.21 242.6 236.52
Packaging and Labeling Focus on Augmented Products Research and Development Discounts Innovation with uniqueness
A commodity that has both the primary physical attributes and the non-physical attributes that are added to increase the product's value. Non-physical attributes of an augmented product may include a product warranty, service or installation, and may increase the price of the basic product being purchased, and allow the company selling the good to provide the consumer with other services that may make using the product easier.