CHAPTER 1 – GENERAL OVERVIEW

1.1 Industry Scenario

Leather and its products are unique items, known for their versatility, style and fashion. While
the leather industry was earlier predominantly concentrated in Europe, a major chunk of
production has now shifted to Asia, and the Asian countries are now playing a significant role
in global leather trade. With the projected increase in demand for leather products and footwear
and projected growth in domestic markets in Asian countries due to growing affluence of
population as a result of economic growth, there are good prospects for sustainable
development of leather industry in the long run. Comparative advantages in terms of factor
conditions such as raw material availability and low labour cost, coupled with environmental
considerations have contributed to a shift in the processing segment of leather sector value
chains towards developing countries.

The major global exporters of leather today are China, Italy, India, Brazil, Romania, Taiwan,
Korea, and Vietnam. Other than some of the EU countries, like Italy and Spain, most of the
European countries serve as final export destinations. In addition, key customers as well as
consumer categories in the global value chain of leather and leather products are located in the
USA, Australia, and Japan. Hong Kong has also emerged as a large global importer of semi-
finished and finished leather - for value addition and export. The growth in Vietnam, Indonesia
and Thailand in the sector can also be ascribed to the thrust on footwear sector arising out of
increased inflow of foreign direct

The Indian leather industry has undergone a drastic change, from being an exporter of mere
raw materials in the early 60’s and 70’s to an exporter of finished, value added leather products
today. It has established itself as a prominent industry both in international as well as in the
domestic market. Apart from being the second largest exporter of leather footwear component,
leather garments, and saddlery and harness; third largest exporter of finished leather; fourth
largest exporter of leather goods, India is also the second largest producer of footwear and
leather garments in the world. The leather industry is an employment intensive sector,
providing jobs to about 2.5 million people. These people belong mostly to the weaker sections
of the society. Women employment is also predominant in leather products sector with their
share being an estimated 30%7. Moreover, 55% of workforce in the sector is below 35 years
of age, which indicates that the sector has abundant young skilled talent.

1
With an annual turnover of over US$ 12 billion, the export of leather and leather products
increased manifold over the past decades and touched US$ 6.5 billion during 2014-15. The
sector is also known for its consistency in high export earnings.

The leather sector comprises tanneries (where hide and skins are transformed into leather) and
manufacturing units (where leather footwear, garments and outerwear, and assorted leather
goods are manufactured). These production facilities are predominantly spread over the
unorganized (mostly family owned) units/ production centres which contributes almost 80% to
the total production. The units are generally spread across large, medium, small and household
units with the small and household units contributing almost 80% of the production. Large and
medium units are generally tanneries or big companies which are involved in manufacturing
of footwear.

Leather is one of the industries in which India has abundance of raw material (India is endowed
with 18% of world cattle & buffalo and 9.2% of the world goat & sheep population), skilled
manpower and technology, apart from the capability to comply with international
environmental standards.

Indian tanning industry

2
Indian tanning industry, started in 1980, with a modest production devoted to leather for shoe
uppers. Over the years, it diversified into a range of end-use segments. Today, Indian tanning
Industry produces over 2 billion square feet of leather per annum. There are more than 2000
tanneries in the country, almost half of which are located in Tamil Nadu, a quarter in West
Bengal and about one fifth in Uttar Pradesh. Chennai, Ambur, Ranipet, Kolkata, Kanpur,
Jallandhar are some of the major centres for tanning industries in the country.

Top Ten Leather Exporters in India

• Tata International Ltd.

• Florind Shoes Ltd.
• Punihani International
• Farida Shoes Ltd.
• Mirza Tanners Ltd.
• T. Abdul Wahid & Company
• Hindustan Lever Ltd.
• Super House Leather Ltd.
• RSL Industries Ltd.
• Presidency Kid Leather Ltd.

1.2 Utility of Different Raw Materials For Leather

Hides and skins are the basic raw materials for leather industry, which originate from the source
of livestock. Trends in the livestock population and its management, rate of mortality of
animals, and meat consumption pattern, greatly influence the availability of hides and skins.
Thus, it is critical to analyse the trends in these segments so as to assess the prospects of
availability of raw materials for the leather industry.

• Cow Hide: Cow hide is the most common type of leather used for leather jackets, vest,
pants, dusters and biker bags. It’s made from all kinds of cows; dairy cows, beef cows,
females and males.

• Buffalo hide: Hide from a buffalo is thick and surprisingly soft. It often has a more
pronounced leather pattern, that is deeper groves and cuts that make leather look the way it
is. Buffalo hide is used in everything cow hide is, plus more rugged items like shoes and

3
 rugs. Full length leather dusters are often made from buffalo. A buffalo leather jacket will
last a lifetime.

• Sheep skin: The skin of a sheep is soft, smooth and light. Often it is used with the wool
left on for wool coats and vest, as well as rugs. It is not as rugged or strong as the above-
mentioned hides, and should not be used to make a motorcycle jacket or other hard-wearing
items. However, they do make great looking fashion jackets and trench coats, as well as
pants and leather shirts.

• Goat skin: Goat leather is extremely flexible and can be dyed in many different ways,
giving you more style and colour options. Goat leather softens over time and with wear,
whereas ostrich leather is soft right off the bat. Tanned leather from goatskin is considered
extremely durable and is commonly used to make rugs (for example in Indonesia)
and carpet binding. It is often used for gloves, boots, and other products that require a soft
hide.

Figure 1 utility of different animal skin (Image source article on Indian leather industry)

1.3 Government Policies

To support the leather sector, the Government of India has taken several initiatives. Some of
the major ones are as follows:

• Leather sector is one of the “Focus Sectors” under the Foreign Trade Policy of the
Government of India.

4
• Entire leather sector is de-licensed, facilitating expansion on modern lines with state-of-the
art machinery and equipment.
• 100% Foreign Direct Investment permitted through automatic route.
• 5% concessional import duty on import of specified machinery for use in leather and
footwear industry has been allowed;
• Duty free import of raw hides and skins, wet blue chrome tanned leather, crust leather and
finished leather of all kinds including splits and sides thereof is allowed;
• Duty free import of specified critical inputs for manufacturers of leather garments and other
leather products including footwear under the Duty Free Import Scheme is allowed.
• Basic customs duty exempted on machinery or equipment for Effluent Treatment Plants in
leather industry.
• Gradual lowering of import tariff (current peak custom duty is 10%) and Simplified
import/export procedures including quick customs clearance.

1.4 Difference Between Leather And Synthetic

The fundamental difference between the two is that genuine leather is made from animal hides,
such as cattle, buffalo or oxen. Faux leather is made from a plastic base and then is treated with
wax, dye or polyurethane to create the colour and texture.

The biggest difference between genuine and faux leather is that real leather is truly unique, as
no two hides are the same. Cattle leather often features hallmarks of its origin, such as stretch
marks, scars and veins, but this only adds to the character and beauty of the product. Genuine
leather also has inconsistent pores and marks, which differentiates itself from all of the rest and
adds to the distinctive look. Faux leather will always be uniform, even if it is created to look
natural as the pores are synthetically created.

Another difference between the two is the durability. Real leather can last for years without
getting damaged – in some cases you can wear it all your life! Leather also grows with a piece
of furniture, the natural nature of the product means wearing enhances the look of leather.

Authentic leather can also be distinguished from faux leathers due its luxurious appearance,
feel and smell. Many faux leathers can also be as good as the real thing, it all just comes down
to the user and what they’re looking for.

1.5 Shoe Manufacturing Process

5
Stage 1

Pattern cutting marks the first step in the production of a shoe. This enables the final footwear
to be produced from its original design. Once the pattern has been prepared, it’s on to the
construction of a wooden frame, around which the shoes will be crafted. The frame provides
the right shape and fitting.

Stage 2

Next comes the cutting of the leather. Specialist clickers will examine the material for any
defects before deciding which parts to use, with the finest-quality leather bends kept for the
soles and heels of the shoe.

Stage 3

Once the leather is cut, the sections are assembled and stitched together in the closing room to
create the shoe upper – the parts of the shoe that cover the toes, the top and sides of the foot,
and the back of the heel. Several processes take place in this stage, such as punching, gimping,
side-stitching, hand-sewing and fitting eyelets for the laces. Each process requires precision
and hand-eye coordination by skilled machinists.

Stage 4

This step involves the preparation of the rib, which is attached to the insole and onto which the
welt, which runs along the perimeter of the shoe’s outsole, will eventually be stitched. It is then
pulled over the toe of the shoe by a four-part lasting machine.

Stage 5

Next stop, the lasting department, where the concerned department will finally begin to take
its shape. The upper is tackled onto the last and cork is inserted into the cavity underneath to
provide insulation. It is crucial for the upper to be correctly aligned, before it side-lasted by
hand.

Stage 6

The shank is added next. This is made of wood and gives support to the Beech. The rigidity of
the arches is ensured by the wooden shanks. They form the backbone of a fine welt shoe and
provide proper support and shape. The cork is also fixed in place. A natural cork provides the
perfect insulation. It fills the cavity of the desired bottom shape and, more importantly, its
cellular structure adopts the shape and form of the foot like a cushion and helps to reinforce

6
the insole. It also eliminates any clicks and squeaks, which can be caused by the shank area.
The leather insoles are now tacked on to the lasts. After the shoe has been fully lasted, the welt
is skilfully stitched through the sides of the upper to the rib of the insole.

Stage 7

The construction is completed by attaching the soles and stitching through the welt. Named for
Charles Goodyear Jr, who invented the machinery required for the process, Goodyear welting
is a time-consuming process, but widely acknowledged as the leading method of shoe
construction. It offers strength and durability, and allows for worn soles to be removed and
replaced with new ones, without affecting the leather uppers. After attaching the soles, the
process of bottom levelling rounds the soles to the shape of the last. The heels are attached in
the finishing room. They are trimmed and scoured with several grades of emery paper to create
the smoothest of finishes.

Stage 8

In the very final stages, the soles are edge-trimmed. The soles and heels are then stained and
the edges coated with hot wax to aid waterproofing and seal the leather. After that, the lasts are
removed, soles are stamped with the brand and the in socks are fitted. Before the shoes leave
the factory, they are hand-polished and hand-brushed by the patina artist. Finally, the shoes
undergo a thorough check, before being laced, boxed and dispatched.

7
 CHAPTER 2- LITERATURE REVIEW
Leather industries play an important role in the development of our economy, while describing
some basic issues pertaining to the leather industries in developing economies, some review of
literature are given here.

Shetty (1963) pointed out that the technological base in the industry was extremely primitive
and a unit was rarely interested to adopt technological modification in the process.

Usha (1985) based on Tamil Nadu Leather Tanning Industry in Year 1978-79.she focused
attention on some selected issues related to the structure of work force, Mechanization and the
prospect of the traditional skilled and unskilled workforce in the industry. Her Major findings
were that the leather tanning sector in Tamil Nadu, about 90.0 per cent of the total
entrepreneurs‟ belonged to the Muslim Community and rest belong to the Hindu Community.
As regards the Mechanization of Industry, most of the tanning and manufacturing units were
using Labour-intensive technique, in which the skilled hand workers formed a majority of the
workforce.

Gupta (1990) in his paper has tried to analyse the global demand for leather footwear and to
analyse the trend of import of leather footwear in ten major countries of the world. His study
reveals that there has been a substantial increase in export of leather footwear to 60.2 per cent
from 1983 to 1987. The percentage share of leather footwear export in total world export of
leather and leather products has declined from 51.4 per cent to 45.8 per cent. In developed
countries like USA, UK and France leather footwear export has increased. However, in case of
some countries like USSR, Denmark and Netherland export declined which need rethinking
and reorientation. Government thus should frame appropriate strategy and should provide
various facilities for import of raw-material, machinery equipment’s and consumables.

Sahasranaman (1993) pointed out some basic problems of the leather product industry.
According to this study, in the Leather product Industry, the dominance of traditional

production system, confinement of production to a particular community, absence of

modernization of technology, were the basic problems of the producers.

Chandramouli’s (1999) on “Leather and Social Development” focused on some

characteristics of Leather Industry. The author stated that the production of leather and leather
products involves various socio-economic activities. The economic activities were largely in
the form of generation of income, creation of employment, etc. On the other hand, the
8
production of leather and leather goods led to the social development in the form of
understanding, awareness, social equity, better health, education and nutrition.

Bhavani (2010) highlights the issue of quality employment generation by the SSIs and negates
the short-term attitude of increasing the volume of employment generation compromising with
quality. The author argues that employment generation by the SSIs may be high in quantitative
term but very low in quality. Technological up gradation would enable the small firms to create
quality employment improving, duration and skill. This structural shift may reduce the rate of
employment generation in the short run but would ensure high-income employment generation
in the long run.

Damodaran (2003) outlined the significance of the leather industry as export-oriented

industry. The traditional leather industry and the commercial leather industry with cluster
formed have seen many changes over the years. While the cluster formed in some cities like
Calcutta and Madras has fuelled the growth of exports in this industry. The study carried by
the researcher is secondary data based and focused on small scale and manufacturing units of
leather industry in his work. In his methodology he carried actual field work by visiting the
entrepreneurs of the many units and workers. In Calcutta many tanneries were visited to get
data. He concluded that the role of state is absolutely important for the export orientation of
the industry through cluster developments in the cities where leather work is carried out
because in the decades of 80’to 90’s the formal sector with units well set has shown growth
while the informal and unorganized sector has shown shrink and fall in the contribution which
may be due to the change in size of the composition.

Sinha and Sinha (1991) in their recent study attempt to analyse export performance of Indian
leather industry with a view to determine the constraints in future growth of industry in context
of policy measures. The author believes that leather production is a low investment, high
turnover activity. It lures many leather traders to undertake small scale production for export.
The entry of these new exporters has had a negative effect on India’s export market because
the main motivation is to garner the export incentives and build up capital in the shortest
possible time. They are essentially economic agents rather than entrepreneurs with a long term
perspective of perfect perception of quality of product. As a result there grew poor image of
Indian leather products in world market. The policy of granting liberal export incentives in an
attempt to increase exports in short term has camouflaged many systematic weaknesses of the
industry.

9
Indian Leather Market
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 export of footwear, leather and leather products from India reached a value of US$ 5.69 billion
during 2018-19. The leather industry is bestowed with an affluence of raw materials as India is endowed
with 20% 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 4.42 million people,
mostly from the weaker sections of the society. Women employment is predominant in leather products
sector with about 30% share. India is the second largest producer of footwear in the world,
producing about 2.41 billion pairs (2017). India is the second largest exporter of leather
garments and third largest exporter of Saddlery & Harness in the world.

The major production centres for footwear, leather and leather products in India are located in
the States of Tamil Nadu – Chennai, Ambur, Ranipet, Vaniyambadi, Vellore, Pernambut,
Trichy, Dindigul and Erode; West Bengal – Kolkata; Uttar Pradesh – Kanpur, Agra, Noida,
Saharanpur; Maharashtra – Mumbai; Punjab – Jalandhar; Karnataka –
Bengaluru; Telangana Hyderabad; Haryana – Ambala, Gurgaon, Panchkula, Karnal and
Faridabad; Delhi; Madhya Pradesh – Dewas; Kerala – Kozhikode and Ernakulam / Cochin;
Rajasthan; Jaipur; Jammu & Kashmir; Srinagar.

Product Segments of Indian Leather and Footwear Industry

Tanning Sector – Annual availability of leathers in India is about 3 billion sq.ft. India accounts
for 13% of world leather production of leathers. Indian leather trends/colors are continuously
being selected at the MODEUROPE Congress

Footwear Sector – India is Second largest footwear producer after China, with Annual
Production of 2.41 billion pairs (2017). India is also the second largest consumer of footwear
after China, with a consumption of 2.49 billion pairs.

Footwear (leather and non-leather) export accounts for about 45.48% share in Indian leather
and footwear industry’s export (2018-19). The Footwear products export mix is: Gents 58%,
Ladies 30%, Children 9% and others 3%.

10
Leather Garments Sector – India is the second largest global exporter, next only to Italy, with
a global market share of about 17%. Accounts for 8.23% share of India’s total export from
leather sector (2018-19).

Leather Goods & Accessories Sector including Saddlery & Harness – India is the fifth
largest global exporter. Accounts for about 28% share of Indian leather and footwear industry’s
total export.

The major markets for Indian Leather & Leather Products are USA with a share of 15.70%,
Germany 11.58%, UK 10.50%, Italy 6.48%, France 5.68%, Spain 4.54%, UAE 3.97%,
Netherlands 3.42%, Hong Kong 3.34%, China 2.60%, Poland 2.02%, and Belgium 2.00%.
These 12 countries together accounts for nearly 71.84% of India’s total leather, leather products
and footwear export.
European Union accounts for 54% of India’s total export of leather and leather products.

Non Leather Footwear

Footwear component %SHARE
Saddlery and 7% 6%
Harness Leather Goods
3% 25%
Leather
Garments
8%
Finished Leather
Leathers Footwears
13% 38%

INDIA’S EXPORT OF LEATHER & LEATHER PRODUCTS FOR 5

YEARS

Product 2014-15 2015-16 2016-17 2017-18 2018-19

Finished Leather 1329.05 1046.45 888.39 874.24 721.73

Leather Footwear 2278.18 2147.98 2128.87 2193.86 2195.47

Footwear
361.29 284.34 298.69 335.24 319.1
Components

Leather Garments 604.35 553.11 518.96 518.96 468.48

11
 Leather Goods 1452.83 1370.04 1365.22 1365.79 1434.24

Saddlery & Harness 162.7 146.38 155.88 155.97 159.35

Non-Leather
306.44 306.74 296.68 296.91 392.63
Footwear
Total 6494.84 5855.06 5646.79 5740.97 5691
% Growth 9.37% -9.85% -3.56% 1.67% -0.87%
Value in US$ Mn

Reference-https://leatherindia.org/Indian-leather-industry/

Exports of leather and leather products

• Footwear export accounts for 49.23% share. Product mix with gents (55%), followed by
ladies (35%) and children (10%). With an annual production of 2257 mn pairs, a huge
domestic retail market exists with 2021 mn pairs (90%).
• Leather garments industry: Annual production capacity of 16 mn pieces. 9.04% share of
India’s total leather export.
• Leather good and accessories industry including saddlery and harness: Accounts for
23.79% share for leather goods and around 2.7% for saddlery and harness. The annual
production capacity of 63 mn pieces of leather articles, 52 mn pairs of Industrial gloves
and 12.5 mn pieces of harness and saddlery items
• Finished leather stands at 15.2%. Tanning industry accounts for an annual production of
about 3bn sq. Ft.

World's tannery

The Leather industry in India accounts for around 12.9% of the world’s leather production of
hides/skins and handles a robust annual production of about 3 bn sq. ft. of leather. The country
accounts for 9% of the world’s footwear production. The industry is known for its consistency
in high export earnings and it is among the top ten foreign exchange earners for the country.

India has an abundance of raw materials with access to 20% of world’s cattle and buffalo and
11% of the world’s goat and sheep population.

12
The Leather industry is an employment intensive industry providing job to more than 4 mn
people, mostly from the weaker sections of the society. Women employment is predominant
in Leather products industry with about 30% share.

Leather Production Centre in India

13
Major Markets
• The major markets for Indian Leather & Leather Products are USA with a share of 15.70%,
Germany 11.58%, UK 10.50%, Italy 6.48%, France 5.68%, Spain 4.54%, UAE 3.97%,
Netherlands 3.42%, Hong Kong 3.34%, China 2.60%, Poland 2.02%, and Belgium 2.00%.
• These 12 countries together accounts for nearly 71.84% of India’s total leather, leather
products and footwear export.
• European Union accounts for 54% of India’s total export of leather and leather products.

% SHARE
USA Germany UK Italy
France Spain UAE Netherlands
Hong Kong China Poland Belgium

Belgium
Poland
China 3% 3%
4% USA
Hong Kong
5% 22%

Netherlands
5%
UAE
5%

Spain
6%
Germany
16%

France
8%

Italy
9% UK
14%

14
Import of Leather Products in India

Value of India's leather and leather product imports from FY 2011 to FY

2019 (in billion Indian rupees)

15
 CHAPTER 3 – STORE VISIT
In order to analyse and see the trends our team visited one multi brand store and one exclusive
brand outlet namely:

• Shoe Store Madhapur: The shoe store is an multi brand outlet in Madhapur having a
spectrum of brands like Red tape, Lee cooper, Egoss. The store had a multiple product
portfolio of formal shoes, slip-ons, sandals etc. of each brand.

Figure 2 store visit at shoe store

16
• Bata Madhapur: Bata is an exclusive brand store having number of outlets. The store had
a broad spectrum of product categories ranging from footwear like shoes, formal shoes,
sandals, slippers, slip-ons to accessories like belts. Exclusive brand outlets have the
flexibility to provide better customer centric service.

Figure 3 store visit to Bata

17
3.1 MARKETING STRATEGIES
Branding: Building a brand is key to the long-term success of your company. This requires
looking at competing shoe businesses and finding ways to stand out from them. For instance,
if you open a sports shoe store, consider carrying just a few types of shoes, such as running,
hiking and walking shoes, to become know as the local store for joggers and outdoor exercise
enthusiasts. If you’re a shoe manufacturer, look for types of shoes the market is lacks, such as
eco-friendly footwear, specific types of sports shoes, wide-width shoes or affordably priced,
trendy women’s shoes.
Multi-Channel: Selling more shoes requires a mix of digital and traditional channel sales
strategies. This means developing an ecommerce website in addition to your brick-and-mortar
shoe store. This allows you sell your shoes any time of the day, not just when your store is
open. In addition, some target markets, such as Generation Y shoppers, rely on the Internet to
conduct research about products they want to buy. They’re likely to shop around online for the
shoes they want before heading to your store to buy a pair.
Customization: Making it easier for customers to find the exact shoe they want makes
footwear customization a technique worth reviewing. Customized shoes appeal to several
different target markets, including people with big or wide foot sizes that make shoes hard to
find, or people who like owning a unique pair of shoes. Plus, once 3-D printing becomes
widespread, offering customization may give your company an edge in the shoe industry.
Social Networking: Encouraging customers to spread the word about your shoes makes social
networking a beneficial marketing technique. Use Facebook, Twitter and a blog to interact with
people are interested in purchasing your shoes. Provide meaningful posts, such as on how to
choose comfortable shoes, what the differences are in different types of sports shoes and how
people’s feet change over time. Talk about the unique aspects of the shoes you sell to use your
social media sites to help build your brand.

18
Manage Footwear Inventory Effectively : Make sure that you carry just the right
amount of shoe inventory you need on hand, in the right size and colour, anytime and
anywhere. Integrated inventory management systems enable retailers to take their strategy up
a notch and verify that they have an adequate supply of shoes currently favoured by the market.
Analytics solutions can also help indicate which styles are selling best. Using mobile solutions,
store associates can also assist customers anywhere, without ever needing to go to the back
store.

Drive Sales by Creating a Convenient Shopping Experience : The easier you make
the shopping experience in your brick-and-mortar store, the likelier customers will be to return.
Similarly, when they browse your site, customers expect pages to load quickly and checkout
to proceed smoothly. A customer who learns that his merchandise requires three weeks delivery
will likely abandon his cart without thinking twice. Footwear customers are particularly
demanding: when purchasing online, they expect free shipping along with short delivery times.
Shoe retailers have responded with average free shipping thresholds and delivery times that are
the lowest in the retail world (Chain Store Age).

19
 CHAPTER 4: KEY PLAYERS IN INDIAN MARKET

TOP FIVE LEATHER MANUFACTURING COMPANIES IN INDIA

1. Bata India Ltd

Source: Bata website

The company was founded in the year 1984 by Tomas Bara. It is headquartered in Lausanne,
Switzerland. Bata India product range includes Footwear, Accessories and Clothing. The
company is Swiss multinational shoe maker based in Lausanne, Switzerland.

Bata India is the largest retailer and leading manufacturer of footwear in India and is part of
the Bata Shoe Organisation. It was incorporated as Bata Shoe Company Private Ltd in 1931
and was set up initially as a small operation in Konnagar (near Kolkata) in 1932. It was the first
manufacturing facility in the Indian shoe industry to receive the ISO: 9001 certification.
The company went public in 1973 when it changed its name to Bata India Ltd. Today, Bata
India has established itself as India's largest footwear retailer with a retail network of over
1,200 stores across the country. The stores are present in prime locations and can be found in
all the metros, mini-metros and towns. The company also operates a large non-retail
distribution network through its urban wholesale division and caters to millions of customers
through over 30,000 dealers.

Bata India Ltd: India's Largest Footwear Company

2015 Identified as the top Indian footwear brand at the Dun & Bradstreet Corporate
Awards.

2014 Receives Udyog Rattan Award.

20
2013 Receives recognition from Brand Equity as being among 'Top Most Trusted
Brands' in retail category.

2009 Starts with 'lean' production of safety shoes.

2008 Bata Industrials laboratory receives A-status certificate from the SATRA
research and technology centre.

2004 Invests in further automation and robotization of machinery and equipment,

and production line.

1973 Goes public and changes its name to Bata India Ltd.

Table Source: ibef.org

2. Bhartiya International Ltd

Snehdeep Aggarwal - Founder and Chairman, Bhartiya Group, Bhartiya has been India's largest
exporter of leather apparel for more than fifteen years, producing leatherwear for global clients
since 1990. It has nine production facilities in the Bangalore-Chennai region of South India,
with a combined annual capacity of over half a million leather garments alone. Bhartiya also
has manufacturing capabilities in China for leather garments, and this division is seeing
increasing demand from European customers. Bhartiya is one of the top exporter of leather
apparel. It is serving global clients since 1990. Its production facilities are in Bangalore-
Chennai region of South India
ACCESSORIES

Bhartiya has been manufacturing leather accessories for global market

since the mid-2000s, starting with a factory for bags and accessories in
Chennai. Bhartiya has an annual production capacity of over half a
million bags, belts, wallets and other small leather goods.

21
LEATHER FINISHING
Bhartiya has a dedicated leather tannery in the southern Indian city
of Chennai and can process 15,000 skins each day. This backward
integration enables Bhartiya to create new finishes and fashions in
leather, which has been a key element in growing our business.
Since its establishment in 1997, this facility has multiplied its
capacity to serve as their hub for leather sourcing and finishing. The
company’s global network means it can be exceptionally competitive when it comes to
sourcing the best raw materials, including hides and skins from New Zealand, the United
Kingdom, Spain, France and Italy, as well as goat and sheep skins sourced from the Middle
East and Latin America.

LEATHER SEZ

Bhartiya’s industrial park for leather and leather products is being promoted as a Special
Economic Zone (SEZ). It is India’s first dedicated leather product SEZ.

3. Farida Group

Picture Source : Website

It is one of the top 10 leather manufacturing companies in India. The company is leading
manufacturer of good quality men and women footwear and finished leather. It operates into
three business segments including leather, uppers and shoe manufacturing units. The group has
various companies which are as follows-

▪ Arcot Soles Pvt Ltd

▪ Farida Classic Shoes Pvt Ltd
▪ Delta Shoes Pvt Ltd
▪ Farida Leather Ware Private Limited
▪ Farida Prime Tannery
▪ India Shoes Exports Private Limited
▪ Kenmore Shoes Private Limited
▪ Farida Tannery PLC- Ethiopia

22
 It operates through three main business segments: leather, uppers and shoe manufacturing
units. The company’s products are sold under popular brand names in more than 40 countries
globally. Farida Shoes specializes in making cemented and moccasin construction articles.
The factory is certified with ISO 9001:2000 from BV.

4. Liberty Shoes Ltd

Picture Source: Website

Liberty Shoes was founded in the year 1954 by Dharam Pal Gupta, Purshotam Das Gupta and
Raj Kumar Bansal by the name of Pal Boot House. It is headquartered in Karnal, Haryana. It
is one of the top 10 Leather Manufacturing Companies in India. Liberty Shoes have been
fashioning footwear for well over 50 years for the style- conscious people around the globe.
Currently with an annual turnover exceeding INR.600 crore (U.S. $150 million). It is amongst
the top 5 manufacturers of leather footwear of the world producing more than 50,000 pairs a
day using a capacity of more than 3 lakh square feet of leather per month. Helping Liberty
dress up the feet of the fashion-driven and quality-seeking customers in more than 25 countries,
which includes major international fashion destinations like France, Italy and Germany, is the
company’s worldwide distribution network of 150 distributors, 400 exclusive showrooms and
more than 6000 multi-brand outlets. Liberty’s commitment to quality is also evidenced by their
ISO 9001: 2000 certification.

5. Mayur Uniquoters Ltd

Picture Source: Website

The company is top manufacturer of artificial leather/ PVC vinyl. Mayur Uniquoters has made
its place in ‘Forbes Asia Top 200 under $1Bn enterprises’ in the Asia Pacific region. Mayur
Uniquoters is offering artificial leather for automotive, footwear, furnishing, leather goods &
garments. Artificial Leather is widely used in the footwear industry because of the fantastic
variety and high durability. Mayur Uniquoters produces a beautiful collection of specialized
PVC Vinyl for the footwear industry. It offer products for various parts of footwear like shoe

23
Picture Source: Website
uppers, shoe lining and insoles. These products find application in formal shoe and boots, sports
shoes, sandals, slippers as well as high end women’s footwear.

4.1 LEATHER INDUSTRY: EXPORT

Leather is a prominent industry in India. The main sectors from which its demand is derived
are fashion, footwear, furniture, interiors and automotive. While the Indian leather totals up to
13 percent of the world’s total production of skins, around 10 percent of world’s footwear
production also comes from India. India’s leather industry is bestowed with skilled manpower,
innovative technology, increasing industry compliance to international environmental
standards and the support of allied industries.

The major production centres for leather and leather products in India are located in the States
of:

• Tamil Nadu – Chennai, Ambur, Ranipet, Vaniyambadi, Vellore, Pernambut, Trichy,

Dindigul and Erode
• West Bengal – Kolkata
• Uttar Pradesh – Kanpur, Agra, Noida, Saharanpur
• Maharashtra – Mumbai
• Punjab – Jallandhar
• Karnataka – Bangalore
• Andhra Pradesh – Hyderabad
• Haryana – Ambala, Gurgaon, Panchkula, Karnal and Faridabad
• Delhi
• Madhya Pradesh – Dewas
• Kerala – Calicut and Ernakulam/Cochin
• Rajasthan; Jaipur
• Jammu & Kashmir

Leather exports

Leather is one of the most widely traded items in the world. Leather exports from India
comprise of raw-hide skins, finished leather, leather goods, leather garments, leather footwear
component, saddlery and harness. India is the second largest exporter of leather garments and
third largest exporter of saddlery and harness in the world.

24
In India, the leather is prepared from the raw-hide skin of different animals like buffalo, goat,
cow and sheep. Majorly, buffalo skin and goat skin are used to make leather products that are
exported to the other countries. It is recorded that from total leather exports 40 percent of
buffalo and 30 percent of goat rawhide skins are used for leather.

As per the official data, the exports of leather and leather products for April-Jun 2018 have
touched USD 1420 million. Product-wise share of different leather categories during the same
period is as depicted below:

Leather exports for April – June 2018, Product-wise share

Graph Source - Indian Leather Industry: Working Paper Series: Paper no. 46 by EXIM Bank.

As per Indian leather export data, the country is exporting this product from its 15 different
states. These are also the largest leather producing states in India. Tamil Nadu and Uttar
Pradesh are the largest states from where India exports leather and recorded share value of 50
percent and 40 percent respectively. It is followed by West Bengal (4 percent), Maharashtra (3
percent) and Himachal Pradesh (1 percent).

Further, the leather export of India is done through 21 different Indian ports including air, land
and sea. Chennai air is the biggest port departing maximum leather shipments and records
around 40 percent of shipments from the total exports. Chennai air is followed by JNPT,
Mumbai. Indian leather exports from JNPT worth 25 percent of total leather exports.

There are more than 1000 leather exporting companies in India. Some of the prominent players
are Prara Leathers Private Limited, Rahman Industries Limited, Farida Prome Tannery Private
Limited, Tata International Limited, Super Tannery Limited and Blue Diamond Leaders.

25
Top 20 countries with highest share in Indian leather exports during April – June 2018 are as
follows:

Exports during Share in Exports

Country Apr-Jun 2018 (Mn) (percent)
U.S.A. 208.2 14.66
GERMANY 159.39 11.22
U.K. 142.78 10.05
ITALY 99.78 7.03
FRANCE 73.14 5.15
U.A.E. 71.59 5.04
SPAIN 65.7 4.63
HONG KONG 64.24 4.52
CHINA 43.93 3.09
NETHERLANDS 43.38 3.05
POLAND 31.64 2.23
VIETNAM 26.71 1.88
BELGIUM 20.81 1.47
SOMALIA 19.97 1.41
AUSTRALIA 19.27 1.36
DENMARK 16.46 1.16
PORTUGAL 16.52 1.16
KOREA REP. 16.18 1.14
MALAYSIA 16.26 1.14
SAUDI ARABIA 14.59 1.03

Table Source - Indian Leather Industry: Working Paper Series: Paper no. 46 by EXIM Bank.

The major markets for Indian Leather and Leather Products are USA with a share of 14.66
percent, Germany 11.22 percent, UK 10.05 percent, Italy 7.03 percent, France 5.15 percent,
UAE 5.04 percent, Spain 4.63 percent, Hong Kong 4.52 percent, China 3.09 percent,
Netherlands 3.05 percent, Poland 2.23 percent and Vietnam 1.88 percent. These 12 countries
together accounts for nearly 73 percent of India’s total leather and leather products export.
European Union collectively accounts for 52 percent of India’s total export of leather and
leather products.

26
Mr. Mukhtarul Amin, Chairman, Council for Leather Exports, says that the industry expects
exports to grow by 10 percent growth by the end of 2018. “While the EU is the largest market
for leather goods, the focus has shifted to other markets such as the US,” he adds.

The Council for Leather Exports (CLE) is

an autonomous non-profit organization in
India. It is entrusted with the export
promotion activities and the plays a major
role in the development of the Leather
Industry in India. More than 3500
companies in India exporting or
manufacturing leather and its products are
the members of CLE. Indian leather exports to the US have grown from 8 per cent to 15 per
cent in the last couple years. “But the potential is huge as our market share is barely 1-2 per
cent,” he added.

INDIA’S EXPORT OF LEATHER & LEATHER PRODUCTS FOR 5 YEARS

Value in US$ Mn
Product 2014-15 2015-16 2016-17 2017-18 2018-19
Finished Leather 1329.05 1046.45 888.39 874.24 721.73
Leather Footwear 2278.18 2147.98 2128.87 2193.86 2195.47
Footwear Components 361.29 284.34 298.69 335.24 319.10
Leather Garments 604.35 553.11 518.96 518.96 468.48
Leather Goods 1452.83 1370.04 1365.22 1365.79 1434.24
Saddlery & Harness 162.7 146.38 155.88 155.97 159.35
Non-Leather Footwear 306.44 306.74 296.68 296.91 392.63
Total 6494.84 5855.06 5646.79 5740.97 5691.00
% Growth 9.37% -9.85% -3.56% 1.67% -0.87%

Table Source - Indian Leather Industry: Working Paper Series: Paper no. 46 by EXIM Bank.

27
 HIGHLIGHTS OF PRODUCT SEGMENTS OF INDIAN LEATHER AND
FOOTWEAR INDUSTRY
• Tanning Sector – Annual availability of leathers in India is about 3 billion sq. Ft. India accounts
for 13% of world leather production of leathers. Indian leather trends/colours are continuously
being selected at the MODEUROPE Congress
• Footwear Sector – India is Second largest footwear producer after China, with Annual
Production of 2.41 billion pairs (2017). India is also the second largest consumer of footwear
after China, with a consumption of 2.49 billion pairs.
• Footwear (leather and non-leather) export accounts for about 45.48% share in Indian leather
and footwear industry’s export (2018-19). The Footwear products export mix is: Gents 58%,
Ladies 30%, Children 9% and others 3%.
• Leather Garments Sector – India is the second largest global exporter, next only to Italy, with
a global market share of about 17%. Accounts for 8.23% share of India’s total export from
leather sector (2018-19).
• Leather Goods & Accessories Sector including Saddlery & Harness – India is the fifth largest
global exporter. Accounts for about 28% share of Indian leather and footwear industry’s total
export.

Market opportunities

The Leather industry in India accounts for around 12.9% of the world’s leather production of
hides/skins and handles a robust annual production of about 3 bn sq. ft. of leather. The
country accounts for 9% of the world’s footwear production. The industry is known for its
consistency in high export earnings and it is among the top ten foreign exchange earners for
the country.

India has an abundance of raw materials with access to 20% of world’s cattle and buffalo and
11% of the world’s goat and sheep population.

The Leather industry is an employment intensive industry providing job to more than 4 mn
people, mostly from the weaker sections of the society. Women employment is predominant
in Leather products industry with about 30% share. The Leather industry in India has one of
the youngest workforces with 55% of the workforce below 35 years of age.

28
Financial support

1. Under the Leather Technology, innovative and environmental issues sub-scheme

of Indian Leather Development Programme (ILDP), following assistance is provided:
• Up to 50% of the project cost with a ceiling of $7.69 Mn for upgradation /installation
of Common Effluent Treatment Plants (CETPs)
• Addressing the environmental pollution caused by leather units.
• Solid waste management through environmental workshops
2. Integrated Development of Leather Sector (IDLS) sub-scheme of ILDP, 30% grant is
provided on the cost of plant and machinery for Micro and Small units and 20% for other
units, with a ceiling of $0.307 Mn for each product line.
3. Mega Leather Cluster (MLC) sub-scheme of ILDP, 50% grant with a ceiling of $19.23
Mn based on size is provided. This is mainly for the establishment of Mega Leather Clusters
to boost infrastructure facility and support services for production and export.
4. Human Resource Development (HRD) sub-scheme: An assistance for Placement Linked
Skill Development training to unemployed persons is provided, $230 per person, for skill
up-gradation training to employed workers, $76 per employee and for training of trainers,
$3,076 per person.
The Footwear Design and Development Institute (FDDI) has established itself as the
premier training institute for the provision of skilled manpower in the leather industry. It
has 55 training centres across India including eight branches. Another 4 branches are being
set up.
5. Mega Leather, Footwear and Accessories Cluster (MLFAC) sub-scheme: MLFAC
provides infrastructure support to the leather, footwear and accessories sector. Graded
assistance is provided up to 50% of the eligible project cost, excluding cost of land with
Government assistance being limited to $19 Mn.
6. Leather Technology, Innovation and Environmental sub-scheme: The help is provided
for upgradation/installation of Common Effluent Treatment Plants (CETPs) @ 70% of the
project cost. The sub-scheme also offers support to national level sectoral industry council/
association and support for preparation of vision document for Leather Footwear and
Accessories Sector.
7. Promotion of Indian Brands in Leather, Footwear and Accessories sub-
scheme: Eligible units are approved for Brand Promotion. Government assistance is

29
 limited to 50% of total project cost subject to a limit of $461,538 for each brand, annually
for 3 years.
8. Additional Employment Incentive for Leather, Footwear and Accessories Sector
scheme: Employers contribute 3.67% to employee’s provident fund for all working in the
leather, footwear and accessories sector. The employees are enrolled in Employees'
Provident Fund Organization (EPFO) for first 3 years of their employment.

Financial investments

1. As per the Doing Business 2019, World Bank, India is ranked 77. Many initiatives under
National Trade Facilitation Action Plan (2017-2020) have upgraded the productivity of
cross-border trade, reducing border and documentary compliance time for both exports and
imports.
2. The National Manufacturing Policy identifies leather as a special focus sector, for growth
and employment generation. The policy aims at a GDP of 25% along with a creation of 100
mn jobs in all sectors by the year 2025.
3. Presence of huge production centres in the form of Mega Leather Clusters (MLC) with all
required infrastructure, where investors can set-up one of these MLCs.
As on July 2018, special purpose vehicle at Jalandhar, under the Mega Leather Cluster
scheme is under consideration.

4. Location of the MLC

• Project Approved
Kothapatnam Village, Kota Mandal, Andhra Pradesh (Area: 537 acres)
• Project under consideration
IMT Rajkot, Mewat, Haryana (Area: 105 acres)
Sandila Industrial Area in Hardoi district & Ramaipur in Kanpur district. (Area: 150
acres)

Key achievements

1. Indian Footwear, Leather & Accessories Development Programme (IFLADP), a special

package for employment generation in the Leather and footwear industry has been
launched in December 2017. The approved expenditure for this is $371 Mn from 2017-18
to 2019-20. Under the programme, 4 projects have been approved with a total outlay of

30
 $15 Mn. This is to facilitate upgradation of infrastructure, job creation and environmental
sustainability in Tamil Nadu.
2. In-principal approval for the mega leather cluster in West Bengal with employment
potential for around 7000 people and an investment of up to $64 Mn. Under the scheme, a
total of 9 projects for Common Effluent Treatment Plant upgradation, with a gross value
of $67 Mn and government assistance of $46 Mn have already been approved and are
under implementation.
3. During 2017-18, primary skill development training has been provided to 94,231
unemployed persons in the Leather & footwear industry and of them, 71,125 trainees
have been provided placement (https://www.investindia.gov.in/sector/leather)

Expanding domestic Markets

1. The expected share of footwear in the private final consumption expenditure is expected
to increase from 1.12 percent in 2012 to 1.76 percent in 2027
2. This trend coupled with an overall consumption growth expected in the economy is likely
to give a boost to the leather industry in India

Expanding Export Market

3. India’s share of the total world leather export market is expected to grow up from 3.34
percent in 2012 to around 6 percent in 2027.
4. This is expected to be driven by growing trade liberalisation and a shift towards factory
based manufacturing from a cottage-based one. (Ltd., 2017)

Industry Scenario
Exports of leather and leather products touched $5.5 bn during 2018-19

• Footwear export accounts for 49.23% share. Product mix with gents (55%), followed by
ladies (35%) and children (10%). With an annual production of 2257 mn pairs, a huge
domestic retail market exists with 2021 mn pairs (90%).
• Leather garments industry: Annual production capacity of 16 mn pieces. 9.04% share of
India’s total leather export.
• Leather good and accessories industry including saddlery and harness: Accounts for
23.79% share for leather goods and around 2.7% for saddlery and harness. The annual

31
 production capacity of 63 mn pieces of leather articles, 52 mn pairs of Industrial gloves and
12.5 mn pieces of harness and saddlery items
• Finished leather stands at 15.2%. Tanning industry accounts for an annual production of
about 3 bn sq.ft.

Strengths

• India’s current and expected demographic dividend is expected to provide a huge pool of
cheap skilled and unskilled labour.
• India’s diverse agro base with huge presence of livestock, such as sheep, cow, goat, buffalo
etc. secures raw material for the industry.
• The government’s policy measures in terms of export subsidies, interest subvention, duty
benefits etc. have enhanced competitiveness.
• The Indian leather industry has shown the capability to quickly adapt to global best
practices and has also become a sourcing hub.
• The Indian leather industry has gradually moved up the value chain by transitioning from
just tanned leather to value added goods.

Weaknesses
• The lack of investments in infrastructure over the last decade has resulted in increased
logistics and transportation costs for the sector.
• India mainly being a leather exporting country is exposed to the fluctuations of the global
market, which can hamper planning.
• Given the constraints in terms of capital, infrastructure and skilled manpower, few Indian
standards are outdated, which hamper exports.
• The huge pool of surplus labour make the industry less factory-intensive thereby losing out
on production efficiencies

Opportunities
• The large and growing domestic market in India provides ample opportunity for the
industry to expand its presence in the coming years.
• The growing fashion consciousness among the youth especially in tier II/III cities is an
emerging opportunity for the leather industry.
• The leather industry is currently labour intensive, but with increased mechanisation and use
of IT, cost efficiencies can be obtained.

32
• The sudden emergence and rapid growth of e-commerce in India favours the growth of the
industry as leather goods can be transported easily.
• The growing overall consumption coupled with increasing luxury consumption provides a
large market for value added leather goods.

Threats
• The large presence of unorganised players in the industry may lead to India missing out on
the benefits of scale and size.
• As majority of the businesses are family owned and access to cheap capital, such as private
placement, ECBs etc. may not be possible.
• The increasingly strict export norms and standards may lead to additional compliance costs
for the export dependent leather industry.
• The traditional competition from China and the emerging competition from eastern-Europe
and other South Asian countries may be a cost factor.
• The poor network of product development centres, design studios and training institutes
may hamper India's grow in the premium segments.

Indian market trends

The footwear sector is a very significant segment of the leather industry in India; rather it is
the engine of growth for the entire Indian leather industry.

India is the second largest global producer of footwear after China, accounting for 13% of
global footwear production of 16 billion pairs. India produces 2065 million pairs of different
categories of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million
pairs and non-leather footwear - 1056 million pairs).India exports about 115 million pairs.

Thus, nearly 95% of its production goes to meet its own domestic demand.

The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of
capacities on modern lines with state-of-the-art machinery. To further assist this process, the
Government has permitted 100% Foreign Direct Investment through the automatic route for
the footwear sector.

Conducive Investment climate towards attracting overseas investments and increasing cost
competitiveness. The Government of India is setting up dedicated Footwear Complex and
Footwear Components Part where footwear clusters are located.

33
Domestic Footwear Industry in India

• The Domestic Footwear Industry in India is valued at approximately US$ 3200 million,
projected growth at 11 – 12% p.a.
• Organized retail is 25% and growing fast at 35-40% pa
• Footwear retailing constitute about 9% in the total consumer market
• Men’s footwear is about 50% of the market
• Branded footwear (including store labels) is about 50% of the market, driven by men’s
footwear largely
• Ladies and kids footwear, Sports Footwear also have vast potential in the domestic market

Source: Private Study by Reliance

Consumer preference for Footwear

• Consumers purchase footwear throughout the year and there is no fixed period/timing of
purchase. However, the beginning of an academic session seems to be a peak time for
purchase of footwear.
• A majority of consumers (over 75 percent) in metro and non-metro urban areas showed
their preference for indigenous footwear and about 17 percent indicated no preference for
indigenous or imported footwear. Surprisingly more than 10 percent of consumers in non-
metros towns showed their preference for imported footwear as against only 6 percent in
metro cities.
• About 55 percent of the consumers surveyed indicated preference for leather footwear
while 45 percent preferred non-leather footwear. However, in non-metros town, more than
70 percent consumers preferred leather footwear and less than 30 percent preferred non-
leather footwear.

(Source: DMG Consulting Pvt Ltd, Noida)

Competitiveness of Indian footwear vis-à-vis imported footwear

• The natural advantage of Indian footwear industry in terms of factor endowments like
availability of leather and cheap labour apparently has not been converted in to a
comparative advantage in production. Import growth has tended to rise faster than growth
of exports of footwear in recent years and this may at- least partly be reflective of the loss
of competitiveness of exports. Taking unit value of exports and imports of some items as

34
 proxies of prices, it is observed that the unit value of imports in majority of footwear items
whether leather or non-leather, is comparatively lower than unit value of exports of these
items.

Statistics of Indian leather footwear market

Revenue

Revenue in the Leather Footwear segment amounts to US$4,745m in 2019.

Revenue Growth

The Leather Footwear segment is expected to show a revenue growth of 13.8% in 2020.

Average revenue per-capita

The average revenue per person in the segment for Leather Footwear amounts to US$3.47 in
2019

35
Volume (million pairs)

In the segment for Leather Footwear, volume is expected to amount to 211.93 m prs. by
2023.

(statista.com)

Key Market Players

1. Hush Puppies
Hush Puppies is a popular division of Wolverine World Wide. With the market in
over 120 countries, the brand manufactures the most comfortable yet elegant leather
shoes.
2. Louis Phillip
A division of the Aditya Birla Group, Louis Phillippe is one of the largest apparels
and footwear brands in India. The Louis Phillippe range of leather shoes has some
outstanding designs to help you take your fashion quotient up a notch.
3. Woodland

36
 Established in the year 1992, Woodland is defined by the spirit of adventure. The brand
offers an extensive line of footwear, performance apparel, and outdoor
gear. Comfortable and snug, a Woodland leather shoe is a must-have in every rugged
man’s wardrobe.
4. Lee Cooper
Situated in London, Lee Cooper has made its products fit in various market types and
pocket sizes. The brand offers classy leather shoes with intricate detailing, certain to
grab your attention.
5. Red tape
Well known for its unparalleled comfort, International styles and finesse, Red Tape is
a high-end shoe brand committed to providing the highest-quality products to the
customers.
6. Clarks
With over 1000 branded stores and franchises globally, Clarks is a leading footwear
brand founded in the year 1825. Clarks is famed for its Desert Boots that are made from
calf suede leather.
7. Allen Solly
One of the fastest growing fashion brands, Allen Solly is a premium lifestyle player in
the retail sector. Modern and trendy, Allen Solly leather shoes are equipped with top
quality soles for good traction and are well-designed for walking on rough surfaces as
well.
8. Red Chief
The list of the top leather shoe brands will always be incomplete without the inclusion
of Red Chief. A part of Leayan Global Pvt. Ltd, Red Chief has made its mark all over
the world with its exclusive collection of leather shoes.

Threats to Leather Industry in India

1. Leather production thrives but harms people and planet
Leather is the fifth largest exported Indian commodity with a value of 6.5 billion US dollars a
year. It’s hard to miss the abundant leather production in Kanpur. Everywhere along the
roadsides you see piles of blue-coloured hides. And even if you didn’t see it, you would
probably smell the liberal application of acrid chemicals used to process the hides. The industry
consists of big companies, but also of small businesses run at the courtyards behind simple
houses on the roadside. One thing they have in common is their rancid smell expanding into
surrounding communities and their significant contribution to water pollution.

37
2. Leather industry fears supply crunch with export duty cut on raw hide
The domestic leather industry has ruled the proposal to impose a sharp export duty cut on raw
leather and hide from 60 per cent to 40 per cent in the Union Budget 2019 tabled in Parliament
last week. Fifteen per cent export duty on EI (Eastern India) tanned leather was also abolished
on July 5. At present, the share of these items is not big in the leather export basket, but an
increase in their export after budget incentives is expected to create a supply crunch.

3.

Resource: https://pib.gov.in/Pressreleaseshare.aspx?PRID=1557419
The major reasons for the decline in exports are due to external factors namely recession in
the major market of European Union (to which about 55% of exports are directed),
instability in middle-east, stiff competition from Polyurethane Garments to the Leather
Garments segment, decrease in demand of non-leather footwear in African countries due
to emergence of production centres in those countries and competition from China and
decrease in global imports of finished leather.
This information was given by the Minister of State of Commerce and Industry, C. R.
Chaudhary, in a written reply in the Lok Sabha.
4. Entry of multinationals in domestic market: The foreign brands making their mark in the
leather industries in India is a huge drawback for the local manufacturers. India being the
major producer of leather, has a very tough competition in the home market.
5. Stiff competition from other countries. (The performance of global competitors in leather
and leather products indicates that there are at least 5 countries wiz, China, Indonesia,
Thailand, Vietnam and Brazil, which are more competitive than India.)
38
6. Non- tariff barriers - Developing countries are resorting to more and more non – tariff
barriers indirectly.
7. Improving quality to adapt the stricter international standards:
8. Fast changing fashion trends are difficult to adapt for the Indian leather industries.
9. Limited scope for mobilising funds through private placements and public issues, as many
businesses are family-owned.

39
 CHAPTER 5- COST SHEET, CHALLENGES AND
LIMITATIONS OF THE LEATHER INDUSTRY

5.1 Challenges of the leather industry

i) Challenge of ownership

In most of the developing countries it can be easily observed that there are hardly any listed
companies and mostly are family-owned, carried out in small to medium scale semi-
mechanized units which are located outside residential areas. The sector is quite dominated by
mainly those firms which have good capital. Tanners in such units have no formal education
and have little or no understanding of the complexities of the leather processing. Generally they
acquire their skills from their elders with hardly any knowledge of environmental protection;
low waste technologies, etc. so, it is essential to have skilled manpower.

Conservative processing should be left and should move forward with better technology.
Approximately every Indian company related to this sector is trying to capture the market by
some of its well-known and conventional products. Actual problem occurs when they want to
grow because it seemed in developing countries that as factories performing well want to shift
to economies of scale, they fall down.

ii) Environmental Impact of Leather Industry

The polluting nature of tanneries which is evident from the intolerable odour is also a problem
which tends to be high because of the presence of organic and inorganic toxic metal salt
residues. Treatment technologies are consistently working hard to reduce pollutants in the
liquid form and convert them into semi- solid or solid forms.

Another problem is sludge which can affect the quality of soil and ground water. Local
authorities and governments should concentrate on how sludge and dry wastes should be
disposed so that it won’t affect the fertility of soil in negative manner.

iii) Technical Barriers

By nature, tanners are very conservative but they are not simply inflexible against change. The
alteration in the parameters of processing i.e., changes in process lengths, changing
temperatures at the time of processing, proposed volumes, use of chemicals etc. influence the
ultimate character of the leather. It is a difficult and complex process to produce leather as a

40
number of expertise steps has to be taken at the time of its manufacturing as it is manufactured
in the form of non-uniform natural protein.

Therefore any tanner should not apply those processes which may create waste. Tanners are
expected to use only that technology in its operations which ensures the reduction of wastes.

iv) Economic Barriers

In developing countries, leather industry suffers from often exceedingly high cost of capital or
inflation rates, higher inventories of chemicals, machinery spares, etc. Due to the pitiable
infrastructure and an often impediment in delivery, it becomes LCA Stages/ Parameters Design
and pre-production Product manufacture Product packaging and distribution Product Use End-
of–life recycling, remanufacturing and disposal.

Resource Efficiency Damage posed by emissions and waste streams Employee health and
safety Equity within company Source: Adapted from “A typology for sustainable operations
management (manufactured product example)”.

v) Sustainability

A Challenge for Indian Leather Industry mandatory for the tanneries to keep an overstocks of
chemicals. Another disadvantage is the imposition of import duties on chemicals and
machinery. Very few chemicals, necessary for tanning are produced in developing countries,
although basic chemicals such as salt, lime, sulphuric acid, sodium sulphate or sodium
carbonate may be available indigenously and most tanning materials like dyes, fat liquors,
special auxiliaries, and finishes need to be imported.

Poor Legislation and Lack of supervising Facilities. Standards set to identify the
level and volume of discharged pollutant standards are rigid by nature and do not pay proper
attention to tannery location as well as they do not have skilled personnel to monitor
performance of the installed treatment plants. A tanner is under pressure to put up a complete
treatment system and meet all discharge limitations at once which is beyond his financial and
technical means. However, very few tanners have the obligatory process and effluent
treatment control facilities.

41
 5.2 COSTING OF A LEATHER FOOTWEAR
BRAND
RANGE
ARTICLE NO.
COLOUR
DESCRIPTION
LAST
DATE PRODUCT PHOTO

COMPONENT MATERIAL SPECIFICATION COLOUR UOM PRICE AMOUNT

UPPER UPPER 1
UPPER 2
UPPER 3
UPPER 4
LINING LINING 1
LINING 2
LINING 3
SOCK
INTERLINING CLOTH
FOAM COLLAR PU
TONGUE PU
SOCKS PU
LABEL SOCKS FABRIC
TRIMS SIDE EMBOSSING
GRINDERS TAPING
EYELET
TAPE
LACE
THREADS UPPER
LABEL
STIFFNER COUNTER
TOE PUFF
FININSHING LIQUID SPRAY
WAX
CREAM
INSOLE MOLDED INSOLE
SOLE PARIS
GRINDERS MASKING TAPE
TINGLE
SOFTNER
ADHESIVE PU
PACKAGING INNERBOX
GENUINE LEATHER
SWING TAG
CARTON TAPE
STUFFING
WRAPING
SILICA GEL
CARTON TAPE
FREIGHT

42
5.3 LIMITATIONS OF LEATHER INDUSTRY

Some of the key challenges faced by the Indian leather industry include poor ranking in the
ease of doing business, quality adherence and delivery compliance, lack of innovation and
technology focus on footwear components, absence of large scale investments and
environmental issues. The power problems faced by the companies due to shortage of power
supply from state utilities also adds to the challenge. It is perhaps because of these reasons that
India has failed to draw interest from foreign investors in the leather industry

i) Raw material availability

For the leather industry in India to grow, the concern towards availability of leather has to be
addressed. India does not have organized animal farming which results in shortage of raw
material. In most parts of the country, cattle are generally slaughtered only when they become
old enough, as permitted by the law. Slaughtering of cattle is done only in a few states like
Kerala, West Bengal and those in the North East, although buffalo, sheep and goats are
slaughtered for meat all over the country. However, in many parts of North India, the buffalo
is used as a draught animal and therefore not slaughtered until it becomes old.

There is limited availability of cow leather in India because of regulations in various regions.
Thus, Indian firms have to rely on imports of cow leather.

There are also segment specific issues in raw materials that impact the competitiveness of the
overall sector. For leather footwear sector, there is very limited indigenous production of non-
leather raw materials like synthetic leather, laces, PU soles, insole board, steel toe caps etc.,
due to which most of the footwear manufacturers have to rely on imports. This adds to the costs
of Indian manufacturers. For leather apparel industry, finished leather fur is not easily available
in India, hence it is imported which again adds to the cost of leather apparel.

In tanning industries, there are chemicals that are used for dyeing like oils and fats, synthetic
tanning agent etc. that are being imported mainly from Europe.

ii) Technological industries- need of the hour

Tanneries have remained a cause of concern in the value chain of leather industry. Efforts need
to be aligned so as to upgrade the technology and modernize tanneries, improve the production
environment of the tanneries including housekeeping and safety so that the health of the tannery

43
workers is ensured. This would also help to attract the new generation manpower to tanneries
which is increasingly becoming a major challenge.

Areas requiring technology interventions include water and energy saving, better utilization
of raw materials resources, having eco-friendly leather, etc. It may be noted that the ‘Integrated
Development of Leather Sector’ (IDLS) scheme implemented during the Tenth and Eleventh
Five Year Plan period has widely been successful in enabling the tanning sector to modernize
and upgrade the technologies.

iii) Increased cost

Most of the countries including India have not been able to achieve absolute competitiveness
with respect to cost structure. Furthermore, since most of the big leather clusters in India like
Kanpur, Agra, and Delhi etc. are landlocked regions, transportation and logistics cost is higher
in these areas especially for exports, thereby adversely impacting their competitiveness.

India’s cost of logistics, as a share of the GDP, is one of the highest in the world (12–13% of
the GDP) compared to the developed markets (below 10% of the GDP). This is reflected in the
transportation cost per kilometre, which hampers the industry’s competitiveness as the industry
is export-based and has to reach a wide retail market.

iv) Low labour productivity

Labour Productivity: Higher labour productivity of competing countries (China and Vietnam
for leather footwear, Pakistan and Italy for leather apparel, and China and France for leather
goods) is one of the sources of their competitive advantage over India. This shows that
competing countries, China, France and Italy in particular, have been able to successfully
manage the system inefficiencies and have been able to progress towards the next stages of
competitiveness.

India lags behind because of strict labour laws as compared to countries like China which
impacts overall labour productivity. There are reported issues of long absenteeism from work,
lower levels of efficiency in work, and other issues which impact the overall productivity of
the labour force in India. Further, the labour is ageing in the Indian leather footwear industry
without proportionate addition of skilled people joining the industry, thereby further impacting
productivity of Indian firms.

44
v) Pollution concerns

The leather industry in India comes under the Red Category - polluting industries - hence there
remains some fear among the industrial community to enter into the leather industry. Tanning
wastewater must therefore be suitably treated and controlled for suspended solids (which
includes sulphides, chlorides, sulphates, chromium, nitrous elements, etc.). Zero wastewater
discharge has been made mandatory in the state of Tamil Nadu and the tanneries have installed
adequate amenities in place to attain zero wastewater discharge. However, the environmental
issues continue to remain a challenge.

45
 CHAPTER 6- FOOTPRINTS IN SUSTAINABILITY OF
LEATHER

6.1 Overview

Rigid environmental regulations, prohibition on numerous chemicals which help in the leather
processing, and rising costs due to testing and certification necessities are some issues which
are being faced by the Indian leather industry since a long time. Even sustainability is also a
big question for all related industries nowadays. The well - known literary sources talk about
these three pillars of sustainable development- ecological sustainability, economic
sustainability and communal sustainability and it looks tough for the Indian leather industry to
achieve sustainability in the above three paradigms along with meeting the several challenges.

Whenever there is industrial slaughtering, animal skins will be available as a by-product. Less
than 2% of animals in the world are farmed specifically for their skin to produce luxury goods.
With no formal data available, and with low technology usage in leather industry in India, the
situation possibly remains the same for India also.

TITLE- Elements of Footprints in sustainability of Leather

Regardless of the leather used as by-products from the production of meat, the need is to
evaluate if there is an alternative use for animal skin generated from this industrial production.

Currently, animal skin which does not go into the leather production ends up in incineration or
landfill, which reduces the added value of the overall process.

46
Animal skin can be processed into gelatine or collagen products, but not all of the waste that is
generated by the livestock industry can be processed into valuable products.

TITLE - WASTE TO WEALTH- MODEL NEEDED FOR THE LEATHER INDUSTRY

Theoretically, it would also be possible to produce biogas, but efficiencies are low and the
needed infrastructure is missing. As a result, the highest added value is obtained by tanning the
skin to produce leather.

Animal skin is an organic material and, theoretically, 99% of it can be processed into useful
products. The products that can be made from animal skin mainly include leather, dog chews,
sausage skins and cosmetic products.

The animal skin has to be seen as a sustainable material, and for this reason, the leather made
from it should be viewed as being just as sustainable. The focus then has to be on the process
of transforming the animal skin into the leather product and achieving this in a sustainable way.

6.2 Parameters of sustainability in leather industry

SUSTAINABILITY AND PARAMETERS

SUSTAINABILITY PARAMETERS
profi tability, future
competitiveness, economic
impact on stakeholder, choice
Econimic sustainability of technology
resource efficiency and harm
posed by emissions and
Environmnetal sustainability waste streams
Health, safety and improved
social conditions for
employees and equity within
Social sustainability company

47
It is now being important for a firm to coordinate and integrate their business functions with
sustainability considerations. For this they need to formulate and adopt new procedures and
strategies that are sustainable and help them to gain a competitive edge in the market.
Sustainability occupies the synchronized accomplishment of environmental, social, and
economic sustainability.

For social sustainability- Products should be designed in a way such that they should satisfy
customer’s needs and wants.

For economic sustainability- The firms should look towards gaining maximum profits but
resources and raw materials must be utilized in the best possible way.

For environmental sustainability- Firm should not rely more on non-renewable whereas
available resources and renewable must be utilized optimum.

A sustainable supply chain offers several benefits i.e. it helps to reduce waste created which
leads to considerable cost savings across the whole supply chain as well as helps in earning
pecuniary profits by each member in the supply chain.

New and latest technology is to be used at each and every step of operations. So, it is required
to have skilled man force that can put their most positive effort in increasing firm’s
sustainability.

A sustainable supply chain offers several benefits i.e. it helps to reduce waste created which
leads to considerable cost savings across the whole supply chain as well as helps in earning
pecuniary profits by each member in the supply chain.

These all above said things are indicating towards inventing and implementing an effective
supply chain design.

48
 CHAPTER 7- COMPETITORS ANAYSIS
Competitor’s analysis in marketing and strategic management is an assessment of the strengths
and weaknesses of current and potential competitors. This analysis helps in finding both
offensive and defensive strategic context to identify opportunities and threats.

It is an essential component of corporate strategy. With the dynamic environment and

liberalisation of trade policies, it is essential to look out what the counter parties are doing and
consumer behaviour in regard to that.

It facilitates planning stage as it helps to identify threats and strengths of the external
environment.

As for our analysis we took 4 brands and studies their major strengths and weaknesses-

i) Hush Puppies-

Since 1958, Hush Puppies has been leading the casual lifestyle revolution — helping people
embrace everyday comfort. Their soft, breathable and comfortable footwear invited young
families to break the rules, kick back and enjoy a comfortable, casual way of living. Hush
Puppies is a global brand, a household name and a cultural icon that embodies the light
hearted spirit of its beloved basset hound.

ii) Clarks-

Clarks story began almost 200 years ago when Cyrus and James Clark made a slipper from
sheepskin off-cuts. At the time it was ground-breaking; a combination of invention and
craftsmanship that's remained at the heart of what we do. And whilst now, as always, every
pair of our shoes begins with a last carved by hand from a single block of hornbeam, advanced
construction techniques, technologies and contemporary materials help us deliver perfection
tailor-made for the modern world.

iii) Van Huesen

The best-selling dress shirt brand in the world, Van Heusen has been associated with stylish,
affordable and high- quality shirts since introducing the patented soft folding collar in 1921.

It was launched in 1990 and is now owned by Madura Fashion & Lifestyle in India.

The brand covers all aspects of an individual’s clothing needs, be it corporate wear, casual
wear, party wear, ceremonial wear making it a complete lifestyle brand.

49

HUSH PUPPIES
PARTICULARS
Country of origin American
Average price Rs, 1500- 9000
Men and women leather
Product portfolio footwear and accessories
165 countries across the
Global Presence globe
17 million shoes are sold
every year, considered a
cultural icon, Positive brand
Strength image
Only considered as a men
Weakness formal shoe brand
Speciality ( If any) Star shoe
50
CLARKS VAN HUESEN EGOSS
United Kingdom American Indian
Rs. 2000- 12000 Rs. 2999- 4999 Rs. 1800- 3500
Men and women leather Men leather footwear and Men leather footwear and
footwear and accessories accessories accessories
100 countries across the
globe Across India
High quality footwear,
Advanced technology, Tailor reasonable prices, India
made for modern world, Galaxy model followed by originated brand, idea to
Understanding of the demamd brand, strong brand image grow and innovate
High quality demands high Less options, low market
price, competitors threat share
Unstructured collection
 CHAPTER 8- RECOMMENDATIONS AND CONCLUSION
The Government of India had identified the Leather Sector as a Focus Sector under ‘Make in
India’ programme keeping in view of its immense potential for growth and employment
generation. Accordingly, the Government is also implementing various Special Focus
Initiatives under the Foreign Trade Policy for the growth of leather sector. With the
implementation of various industrial developmental programmes as well as export promotional
activities; and keeping in view the past performance, and industry’s inherent strengths of
skilled manpower, innovative technology, increasing industry compliance to international
environmental standards, and dedicated support of the allied industries, the Indian leather
industry aims to augment the production, thereby enhance export, and resultantly create
additional employment opportunities.

8.1) RECOMMENDATIONS

i) Acceleration of the drivers of consolidation, integration and organisation in the

industry

Industry is largely fragmented leading to small entrepreneurs holding a major share in the
industry. The small scale and unorganised nature of the industry for instance, has led to a
situation where small entrepreneurs neither have the capacity nor the inclination to invest in
human resource development.

Pay scales and the work environment in the industry have also not been very attractive
resulting in a situation where the segment has almost come to assume the image of one, which
is the last resort for a serious career seeker.

Recommendation- Though certain large players have gone in for consolidation by taking over
smaller players, it is of prime importance for the industry to move from unorganised to
organise.

 Initiatives by government for continued liberalisation of foreign investment will enable the
industry to establish larger scale and best practice driven companies.

ii) Industry to gear up to meet the global trends; The government, industry and
training system linkage needs to improve to develop world class products

With many global brands coming into India, there is an increasing need for quality testing and
supplying quality products to the companies.
51
 Introducing standard manufacturing process, such as lean in curriculum, will help the
trainees reduce wastages during the production process.

 Including basic management principles in the engineering and technical curriculums

improve their knowledge in knowing the overall principles and practices.

 The government can incentivise the industries, which help to do this by giving it tax breaks
for adopting such a practice.

International quality control needs to be adhered for exports such that the manufacturing quality
of India meets with the international standards.

 Envisaged job roles as supervisors and quality control managers in various segments would
be in demand.

iii) Development of adequate infrastructure for enabling growth in the industry

Infrastructure and leather machinery in ITIs and ITCs offering courses in tanning, finishing,
dyeing, printing and processing operations are not of latest technology. With increased
automation and changing technology, there is requirement of constantly upgrading the skills
amongst operators and supervisors.

 Lack of enabled infrastructure to ensure quicker deliveries and faster movement of goods
from the respective clusters for deliveries or getting raw materials.

iv) Genuine leather authentication marks on products

This symbol means that a pair of shoes is made from leather.

The symbol represents the shape of an animal’s skin.

Leather mark

52
 Another symbol to watch out for looks like the one for leather but
with a diamond inside it. It means that the item is made from coated
leather, which still comes from an animal.

Coated leather mark

Consumer is the king of a business. But often they are manipulated due to lack of knowledge.
Often they are sold a non -leather item in the name of leather but due to lack of knowledge they
are often misguided. Government measures should be undertaken to ensure that the interest of
customer is well taken care off by rightly informing them.

v) Waste to wealth

Leather Technology, Innovation and Environmental sub-scheme the help is provided for
upgradation/installation of Common Effluent Treatment Plants (CETPs) @ 70% of the project
cost.

Despite the enrolment of this scheme, another opportunity for the companies for a value added
chain can be collaboration with different Ngo and Self groups wherein certain technical
assistance and professional training can be provided on how to utilise waste leather and further
the vale added items can be sold.

vi) Better quality global standards

To cite an example, the Turkish Government has undertaken a project called ‘Turquality’, an
accreditation system for the product groups with brand potential to upgrade the perception of
products made in Turkey.

The Turquality programme mainly consists of two complementing activities.

• On the one side, there was the development of a quality manual and accreditation scheme
which defined the quality standards which applicants will be required to meet in order to
be accepted in the programme and for use of the Turquality logo and brand.

53
• On the other side, an articulated auditing programme was being implemented with
the aim to “benchmark” Turkish companies with international best practices. The aim
was a national branding strategy, to bring world class standards and best practices to
Turkish industries, to brand Turkey itself, so the perception can be created on a global scale.

The Turquality Programme seeks to improve the image and respectability of Turkish
products generally through subjecting applicants to quality assurance evaluations.

In the event applicants receive the coveted Turquality

logo, the Turkish government provides subsidies of up to
US$ 5,00,000 for marketing and distribution; and US$
3,00,000 for design and development. As at the end of
2014, 111 brands from 100 different companies had
received Turquality support, whereas 55 brands from 54
different companies benefited from the Branding
Program.

The Government of India on its part could introduce a similar scheme to incentivise Indian
leather units to abide by the identified international accreditations which will help build a brand
image for the Indian leather goods. In the event firms receive the accreditation.

8.2) CONCLUSION

Leather and allied industries in Tamil Nadu play an important role in terms of providing
employment to the large number of artisans and also earning foreign exchange through exports.

The growth of Tamil Nadu export of leather and leather products in comparison to India exports
is quite high and when compared to the world import it is quite low. The present study has
brought out the various internal and external factors influencing the export performance of the
firms in Tamil Nadu leather industry. It is clear that there has been a continuous shift of leather,
footwear and leather goods production from developed to developing countries.

The developed countries import low and medium end market leather footwear and leather
goods from developing countries keeping their manufacturing limited to high fashioned high
value added products.

India remained a developed country with great manufacturing power. Indian methods of
production and the industrial, commercial organizations could stand in comparison with those

54
in vogue in any other part of the world. India was also exporting her manufactured products to
237 different parts of the world, especially to Europe. India was an advanced industrial,
commercial and financial power. It was known for its efficient systems and well organized
institutions.

If India could sustain a growth rate of 8 percent per annum, India‘s growth rate will exceed the
growth rate of China in the next few years. By 2025, India may overtake Japan, in terms of
GDP, and India will become the third largest economy in the world. By 2050, India could
overtake the US in terms of GDP and India could attain the 2nd position in the world. Thereafter
with the increasing demographic dividend, with greater labour participation, India would
compete with China for the first place.

There is a possibility, that with greater labour participation, and with a growth rate of 8-9
percent, India could become the largest economy in the world in 2060s.

Leather industry is amongst the top ten foreign exchange earners for the country.

India has also reflected the global recessionary trends in recent years. Currently, both
production and export orders are believed to be decreasing drastically.

In this context, the policy makers should revisit the Leather industry. Every effort should be
taken to promote domestic investment in the Leather industry.

55
 REFERENCES

Denman, S. (2016). making of a shoe. making of a shoe.

Invest India. (2019). Leather Industry in India. Leather Industry in India.
man, l. (2008). leather made from different animals. leather supreme.
Sahasranaman, A. (1989, December). Human resources development for leather industry. Leather
Age, 12 (1).
Sinha, S., and Sinha, S. (1991, August). Leather exports an illusory boom. Economic & Political
Weekly, 26 (35)

1. Press Information Bureau, Government of India, Ministry of Commerce & Industry, Potential
for Growth of Leather Based
Industries, http://pib.nic.in/newsite/PrintRelease.aspx?relid=95785 accessed on 27 May 2019

2. Council for leather exports, Export Performance of Leather and Leather Products from
India, http://leatherindia.org/category/exports/ accessed on 27 May 2019

3. Council for leather exports, Export Performance of Leather and Leather Products from
India, http://leatherindia.org/category/exports/ accessed on 27 May 2019

4. Council for leather exports, Industry at a glance, http://leatherindia.org/industry-at-a-

glance/ accessed on 27 May 2019

5. Press Information Bureau Government of India Ministry of Commerce & Industry, Growth of
Leather Industry, http://pib.nic.in/newsite/PrintRelease.aspx?relid=186811 accessed on 27 May
2019

6. Ministry of Commerce & Industry, Potential for growth of leather-based

industries, https://dipp.gov.in/sites/default/files/ru4501.pdf accessed on 27 May 2019

7. Council for leather exports, Indian Leather Industry, http://leatherindia.org/indian-leather-

industry/ accessed on 27 May 2019

8. Department for Promotion of Industry and Internal Trade, Promotion of leather

industries, https://dipp.gov.in/sites/default/files/lu_4316.pdf accessed on 27 May 2019

9. EY reports, Footwear (India) – Industry Overview – FY18, accessed on 27 May 2019

10. EY reports, Footwear (India) – Industry Overview – FY18, accessed on 27 May 2019

11. EY reports, Footwear (India) – Industry Overview – FY18, accessed on 27 May 2019

56
12. Press Information Bureau, Ministry of Commerce & Industry, Year End Review 2018-
Ministry of Commerce &
Industry, http://pib.nic.in/newsite/PrintRelease.aspx?relid=186255 accessed on 27 May 2019

13. Ministry of Commerce & Industry, Statement of Activities 2018-

19, https://commerce.gov.in/writereaddata/uploadedfile/MOC_636850524269073529_Statement
_of_Activities_2018-19.pdf accessed on 27 May 2019

14. Planning Commission, The Manufacturing

Plan, http://www.planningcommission.nic.in/aboutus/committee/strgrp12/str_manu2703.pdf acce
ssed on 27 May 2019

15. Make in India, Achievement Report – Leather sector - 30 October 2018, accessed on 27 May
2019

16. Government of Uttar Pradesh NRI Department, Mega Leather Cluster

(MLC)Project, http://www.upnri.com/mega-leather-cluster-project.htm accessed on 27 May
2019

17. Press Information Bureau - Ministry of Commerce & Industry, Four Projects Approved in
Tamil Nadu under IFLADP, http://pib.nic.in/newsite/PrintRelease.aspx?relid=184110 accessed
on 27 May 2019

18. Press Information Bureau, Achievements of Ministry of Commerce and Industry

2018, https://pibindia.wordpress.com/2018/12/12/achievements-of-ministry-of-commerce-
industry-during-2018/ accessed on 27 May 2019

19. Ltd., K. A. (2017). Human Resource and Skill Requirements in the Leather and Leather Goods
Sector. Gurugram: KPMG. Retrieved from
https://www.msde.gov.in/assets/images/industry%20reports/Leather-and-Leather-Goods.pdf

57