WELCOM

LEATHEREX FOOTWEAR

E IND. LTD
HISTORY
 Leatherex was established in 2000 with
the technical collaboration of ASICS
Japan. In the beginning it was only for Establishe
Japan market. d in 2000
Factory in
Joint
Joint Dhaka, EPZ
 It was relocated to it’s own building Venture
Venture
with
with BZ
complex in 2003 at the present location. It MODA
BZ
MODA inin
was financed mainly from the directors 2012
2012

equity participation.
 It was expanded in 2006 to double Own
Own
capacity to absorb European orders. Factory
Factory in
Savar,
Savar,
in

Dhaka
Dhaka in
in
 Joint venture with BZ MODA, Italy starts in 2003
2003

2012 to make
traditional/classical/handmade Italian
shoes.
PU &
 It was upgraded with in-house component Compone
nt Factory
making facility with a linkage in 2008. in 2008

Capacity
Capacity
increased
increased
by
by 3 3 lines
lines in
in
the
the factory
factory
in
in 2006
2006
ACHIEVEMENTS
ORGANOGRAM
CAPACITY
Main Products : Leather Casual, Basic, Snickers, Moccasins, Dress Shoes, Mesh Shoes, Pumps,
Men's & Ladies Sandal, Boots.

Turnover (Yearly) : 6 million US dollars approximately,

Yearly Capacity : 8,00,000 pairs (depends on design/article)

Building Area : 1,25,000 sq.ft

Capacity Utilization in 2016 : 50% (Free capacity to offer 50%)

Number of Employees: 1050

Main Export Market : Japan, Korea , USA, Canada, Austria, Sweden, Germany and Italy.

Machinery : “Torielli” –Italy, “Paff”- Germany, Olympic, “Nakamura”-Japan & Conveyor

system- Taiwan.

Duty Free Raw Materials : Company has SUPERVISORY BOND LICENCE and import of all
raw materials are duty free covering GSP regulation.

Bank : The First Security Islami Bank Ltd.,Dilkusha Branch, Dhaka;

Dhaka Bank Ltd., Dhaka, Bangladesh
OUR GROWING
PARTNERS

2010
2007 HUMANIC

2014
REGAL Z LABELS
Japan Austria Germany
We have been qualified as It is the 110 years old It is the largest online
their only vendor in company in Austria. They company in Germany. We
Bangladesh. REGAL is the have supported LEATHEREX have achieved as the best
oldest shoe company in with ADA to built up a performer award in
Japan, collaborated with compliance factory and “Product Safety” in 2017
Brown shoe, USA. setup automated business amongst 70 vendors of the
operation with OTIS World. It is operated
(ONLINE TRACKING through software OSCA.
INFORMATION SYSTEM)
COMPLIANC PRODUCT QUALITY
E & CSR DEVELOPME ASSURANCE
NT/SAMPLE
MAKING
COMPLIANCES

 Leatherex Footwear Industries Ltd. is 100% compliant factory.

 CSI, German Consultant has trained up LEATHEREX for compliance and introduced strict
implementation of ethical trade manual ( ETI Base code).
 We have achieved ISO-14001 2015 certificate.
 We are working with ILO Better work since 2017. We have completed first cycle very successfully
and 2nd cycle running.
 The factory has done COC & C-TPAT audit conducted by Omega compliance for CALERES.
 Omega compliance has given few findings and we have already resolved more than 80%
findings.
 By 14th November 2018 we are going to do QA Technical audit and then Amfori(BSCI) audit
conducted by reputed international audit firm Intertek.
 We are ensuring 100% safety and security of all employees, partners and products.
 We have WPC (Workers’ Participation Committee) which is elected as per labor law/ ILO Guideline.
ISO 14001:2015
R & D, Sample development – PD & Service
from CHINA office (ODM/OEM)

 We have designing and collection making facility in Italy and sample

development facility in China and in-house of Leatherex, Bangladesh.
 We develop and design outsole and design accessories through our
own development office in China. We can open mold according to the
design, sample or CAD file. We work for ODM/OEM specifications.
 Our China office is jointly working with Leatherex Dhaka team And
Italian Designers closely according to the customer’s requirements.
 We can offer new collection for SS & AW every year.
Quality Assurance Policy
 Leatherex believes in growing with its
customers. We feel proud by knowing our
customers are doing well. We contribute to
their success by becoming a solid partner.
 Our business model is based on competitive
pricing, high quality manufacturing, and on
time shipment in the season.
 Our quality protection and guaranty is among
the best in the industry. We have achieved
Japanese quality standard success already.
We currently have 98.5% “product quality
pass rate” during re-inspection in Japan,
which is higher than any of our competitors
from China and India.
We have several quality assurance options:
• Option 1
• Buyer inspects 100% before packaging with the
support of the Quality Assurance Team of Leatherex.
• Option 2
• Buyer can nominate their representative to monitor
and inspect the quality before shipment.
• Option 3
• Leatherex in-house QA (Quality Assurance) team
check and inspect 100% merchandise before
shipment and a PSI certificate is issued to the buyer.
• Replacement guarantee is given to the buyer for any
problem because of poor standard merchandising
when customer receives the shipment
Our Partner Tanneries with ETP
• We are linked with the best
Tanneries at home and abroad,
who are making world’s highest
standard leather with “REACH
Regulation” .The whole tanning
process is with “Effluent
Treatment Plan (ETP)”
Strong Linkage Industry

• Leatherex has a very strong

linkage industry experience.
We have our own PU
footwear components making
unit, using Korean technology.
We make very high quality
PU footwear components,
which is widely accepted in
Japan, Europe and
USA/Canada.
Outsole & Footwear Components
Facility
TPR Outsole

PU Outsole

PU Wedge/Heel

ABS Heel

Rubber Outsole
Opportunities Ahead of Us

WHY SOURCE  Overall industry fast facts

 Now, after RMG, leather industry is the 2nd exporter position of the country.
FROM  In last 10 years from FY’2007-08 to FY’2016-17 achieved a growth rate of 513%,
BANGLADESH? yearly growth rate 16.65%.

 Size & capacity

 Around 220 tanneries, 2500 footwear making units and 90 large firms.
 4% contribution to country’s total export earnings.
 Almost 90% of its finished products is being exported.

 Raw material is the natural advantage

 Bangladesh livestock base: 1.8% of the world’s cattle & 3.7% of the world’s goat.
 The annual supply of hides and skins in Bangladesh is estimated - 300 million sft.
 About 76% of tanneries in Bangladesh are export-oriented.
Overview of Footwear Industry 2017

 Bangladeshi footwear industry is one of the fastest  Production vs. Consumption

growing in the world increased export by almost
 Production: 399 million pairs (world rank
700% in the last decade –World Footwear Yearbook
2017. 7) Consumption: 375 million pairs (world
 Bangladesh ranked 8th position in terms of footwear rank 12).
production in the world in 2016, with a production of
399 million pairs (1.6% World Share).
 In 2016, Bangladesh shares 1.8% (Pairs) of world
consumption, and 6.4% import share of consumption.
 Growth in sport shoes segment from 14% in 2012-13
to ~20% in 2015-16
Export performance of leather and footwear industry (HS Code: 41,
42, 43, and 64) of last 5 years (2013-2018)
Export earnings of footwear industry in last
5 years
Reasons to invest in Bangladesh
 “Bangladesh offers a truly competitive cost base, average factory worker
salary is
 around USD 100+” – JETRO.
 “One of the major potential hubs for global value chain of footwear” –
FDRA.

Why Bangladesh?
 57% of the population is golden age (age of 25).
 Privileged market access to EU, Japan, China India with duty free quota
free access of around 3 billion people in the region and 160 million in the
country.
 66 among 100 private and public economic zones are underway
comprising 77000 acres of fully serviced land.
 Unbroken 6% economic growth for a decade.
 No capping on amount or percentage of investment, repatriation of profit
or equity is the most hassle free.
Massive infrastructural
development is in progress :
 Growing investment infrastructure.
 Dhaka-Chittagong highway.
 Deep sea port - Sonadia, Cox’s
Bazar.
 Growing air connectivity.
 Padma Multipurpose Bridge
Project.
 Dhaka Elevated Express Highway.
 Special Economic Zones.
 100 SEZs.
 10 years tax holiday, incentives,
duty free imports, no ceiling FDI
etc.
Investment prospects in
backward linkage industry:
 Currently backward linkage
industry is in evolving state.
 In line with growing export
performance and industry 5
billion USD target by 2021
 Backward
linkage/component setup
are increasing.
 Backward
linkage/component investors
are entitled to enjoy policy
support and specialized
supports applicable to
general investors as per
government policy and rules.
Investment opportunities &
government supports
 Leather sector as focus industry under
non-traditional market & product
 diversification.
 Government offers exclusive economic
zone: 8-EPZ in operation and target to
establish 100 EPZ & SEZ by 2030.
 Foreign and joint venture investments
are encouraged in leather products and
 footwear industry.
 Bond facilities for 100% export oriented
leather industries.
 Duty and tax draw-back for exporters.
 100% foreign ownership permissible.
 Enjoy MFN (most favored nation) status.
 No ceiling on foreign and local
investment.
 Duty free import of construction
materials.
Future Vision

 Bangladesh government and industry aim to reach USD 5 billion annual export by
2021,
 resulting in 200,000 additional employment in this sector.
 Enhancement of compliance regulations and to acquire sustainable competitive
edge.
 Bangladesh government and industry target to train at least 15,000 skilled
workers by 2020 under the implementation of Skills for Employment Investment
Program (SEIP) through Ministry of Finance in cooperation with Asian
Development Bank (ADB).
 Establishing world class Design Center
THANK YOU