LEATHER MARKET IS FIRM WITH MORE DEMAND AND LESS SUPPLY

LEATHER MARKET IS FIRM WITH MORE DEMAND AND LESS SUPPLY


V.M. Khaleelur Rahman

The leather market is firm with more demand and less supply in Periamet (Chennai) and other centres like Ambur, Vaniyambadi, Ranipet, Melvisharam, Pernambut etc. All items - goat, sheep , kip and calf leathers - are on the move. In the Periamet market shoe manufacturers are showing good interest for tanned goat skins Run selection at around Rs.60/- whereas Fifth and Inf.Fifth selections are in demand at around Rs. 50/- and 45/- per sq.ft. respectively. Tanned goat All Suedes are sold at around Rs. 42 and goat Linings A/B/C have continuous demand at around Rs. 36/35/34 per sq.ft. The general feeling in the market is that leather and shoe manufacturers are not able to get the quantity they require in these items. They have to book in advance with tanners for their requirements. The present time is peculiar in the sense that it is out and out a seller’s market.

In Vaniyambadi which is a good market for wet blue, crust and finished sheep leathers like nappa we can see increased number of customers purchasing these items at varying prices depending on the selection and quality. Imported skins are also available here. There are many tanners who import wet blue goat and sheep skins from countries like Switzerland, Nigeria, Saudia Arabia, Egypt, etc. Even import prices have gone up considerably.

In Erode also which is a popular centre for wet blue cow hides, shoe manufacturers continue to buy their requirements with much difficulty as they have to bargain a lot for prices even with regular suppliers who on the other hand regret their inability to supply at old prices due to abnormal increase in prices of raw hides at different centres in the country.

When I asked a leading exporter the reason for this state of affairs in the leather market, he said, “I don’t think there is any abnormal demand for leather and leather products in the international market at higher prices. The main reason for it is the work pressure in factories and fear complex among particularly new exporters that they may not be able to get raw hides and skins they require to fulfill their obligations”. Of course it remains to be seen what happens in the future.

EXPORT OFFERS FOR FINISHED LEATHER

Chennai exporters are quoting hihger prices for various items of finished leather. F/C goat upper leathers for shoes, 4/7 sq. ft. ABC, are quoted at around US$2.20 and D/E/F at around US$1.80/170/160 per sq.ft. In the S/C and F/C goat lining leathers which have good demand abroad the present prices, quoted by tanners for 3/5 or 4/7 sq.ft. TR-1/2/3, are US$1.30/1.20/1.10 per sq.ft. However it is learnt that overseas customers are mostly reluctant to pay these prices but exporters here say that they have no other option as prices of raw skins, chemicals, wattle extract, labour charges etc. have gone up and apart from this availability of raw skins is also limited at all raw skin centres in the country.

JAPAN TRAGEDY

The recent earthquake tragedy occurred in Japan has paralysed the normal life beyond our imagination in some areas in Japan. The valiant Japanese who are reputed the world over for their straightforward and honest dealings are endeavouring their best to cope up with the situation and regain what has been lost. They will achieve it. As far as the leather industry is concerned, it is not known if it has been affected and if so to what extent. However leading exporters say that there will not be any big change in their dealings with our country and in their export and import policy.

HONG KONG AND BALOGNA LEATHER FAIRS

As usual tanners and shoe manufacturers are participating in the Hong Kong based Asia Pacific Leather Fair (from 30th March to 1st April 2011) and the Bologna based Lineapelle leather fair (from 6th to 8th April 2011) This time due to the market position explained above it has become necessary for them more than ever before to meet their regular customers during these two fairs and prepare their future export and import plans. Leather and leather products exporters who have entered into big export contracts are in a dilemma as covering their requirements of raw hides and skins has become a Himalayan task at present.

(Indian Leather, April 2011)

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26TH IILF 2011 : A BRIEF REPORT

26th IILF 2011: A BRIEF REPORT


V.M. Khaleelur Rahman

Although there is no dearth of leather fairs on international level, it is only 4 or 5 fairs which are considered the most important and worth participating every year. The India International Leather Fair (IILF) is one of them. The 26th IILF 2011 held from 31st January to 3rd February 2011 with a gala inauguration by Mr. Virbhadra Singh, the hon’ble Minister for Micro, Small and Medium Enterprises, Government of India and presided over by Dr. Subas Pani, Chairman & Managing Director, India Trade Promotion Organisation (ITPO) at the Chennai Trade Centre in Chennai was a well improved and well organized one with approximately 18,000 sq.mts. gross area and over 400 exhibitors from home and abroad with all their glittering paraphernalia.

Mr. Salman Khurshid, Hon’ble Union Minister of Water Resources and Minority Affairs, Mr. M. Rafeeque Ahmed, Chairman, Council for Leather Exports, Dr. Rahul Khullar, Commerce Secretary, Government of India and Mr. Uday Kumar Varma, Secretary, Ministry of MSME, Government of India, Mr. A.B. Mandal, Director, Central Leather Research Institute, Chennai, Mr. Ali Ahmed Khan, Executive Director, Council for Leather Exports, Chennai were among the dignitaries present on the dais and spoke on the occasion.

Mr. Mandal stressed the need for achieving global leadership by utilizing our country India’s abundant resources in terms of skilled manpower, raw material, design techniques, entrepreneurial skills and investing substantially in the tanning sector for implementing modernization schemes, improving productivity and rationalizing labour policies. Mr. Ali Ahmed Khan explained that the Council had been taking a lot of market promotion efforts to increase India’s share in the global leather trade and had been actively promoting Buyer-Seller meets at various locations worldwide.

The hon’ble Ministers Mr. Virbhadra Singh and Mr. Salman Khurshid assured the leather industry of their “supportive measures” to make it more competitive in the world market. Dr. Subas Pani said that the leather industry should attain the status like the software and auto sectors.

The CLE Chairman, Mr. Rafeeque Ahmed was felicitated in the function for the prestigious Padma Shri award conferred on him. Mr. M. Mohammed Hashim, an industrialist and former Chairman, Council for Leather Exports who delivered the felicitation address paid high tributes to him and said that he deserved it well for his excellent service for the development of the leather industry. The audience cheered the Padma Shri awardee with a standing ovation.

Mr. Rafeeque Ahmed expressed his thanks for the felicitation and said that the leather and leather products registered consistent growth in the past several years and reached US$ 3.40 billion during 2009-10 recording cumulative growth rate of about 5.43% in last 5 years. He was optimistic of the industry having the potential to achieve the turnover target of $8.25 billion by 2013-14 if the government extended additional support in necessary areas. He talked about the necessity of “mega leather clusters” on the lines of those in the handloom and power loom sectors and constituting a Rs.100 crore corpus for skill upgrade in the leather sector.

Mr. S.M. Shahid of M/s. Zam Zam Tanners, Kanpur was specially honoured with the “Doyen of Leather Industry Award” for his contribution towards development of Indian leather industry.

A total of 62 member-exporters belonging to the leather and leather products and other categories were honoured for their export performance for the year 2009-10. The hon’ble Ministers Mr. Virbhadra Singh and Mr. Salman Khurshid presented the Awards to them.

The seminars organized by the IFLMEA and CLE on the following subjects were useful to the participants.

1. Brand Building through Design

2. Carbon Footprint

3. Environmental Audit

4. Sustainable Leather Management

5. New Development in Antifungal Process

6. Is it time to measure time? – Introducing work measurement-improving efficiency and

7. Process Innovations & Lean Six Sigma to reduce costs and improve efficiency.

There were mostly overseas exporters of leather, chemicals, machinery and equipment among the exhibitors. Many Chennai based leading exporters of leather and leather products were conspicuous by their absence for the reasons best known to them. However the forthcoming APLF-MM&T fair to be held at Hong Kong from 30th March to 1st April 2011 will attract these and many more exporters as usual. Many are getting ready to participate in it. It is the wish of many tanners that the IILF should achieve the status the Hong Kong and Paris fairs have got.

No doubt the fair provided an excellent opportunity for the visitors and participants to meet, discuss and plan their marketing and development strategies in accordance with the demand of the present time. Although it was interesting, charming and entertaining, it looked like a routine affair – a stereotype - without any new additions. Everything was on expected lines. Many in the industry feel that the organizers would do well to:

1. attract more leather and leather products importing companies to the fair as in the cases of the Hong Kong and Paris fairs, if necessary with some attractive offers.

2. initiate some Indian cultural programmes in the evening to entertain visitors and participants from different countries and also to highlight the rich cultural heritage of our country.

3. arrange a valedictory function with a detailed report of the fair.

to make the IILF more glamorous and beneficial for all sections of the people.

(VMK in Indian Leather, March 2011 issue)

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LEATHER MARKET FIRM WITH INCREASING DEMANDS

 LEATHER MARKET FIRM WITH INCREASING DEMANDS


V.M. Khaleelur Rahman

The leather market continues to be firm with increasing demands for leather and leather products such as shoes, garments, goods etc. Exporters are having orders for leather and leather products from domestic as well as overseas customers. But some are finding it difficult to execute them well within the stipulated time due to unavailability of raw materials to the normal extent. It is a difficult time now as the prices of raw skins and hides are increasing. There is no room even to prefer imports of these items as even foreign exporters have enhanced their prices abnormally. Anyhow in such tight situations workability and preference lose their meanings and only compulsions rule willy-nilly. This is what is happening today. Most of the leather exporters seem to go berserk in having raw materials at available prices. But they are not able to get increased prices for their exports in proportionate to the increases in the prices of raw materials.

There are only a few tanners left doing E.I. tanned hides and skins. The demand for these items is very much in the Chennai local market and transactions are taking place mostly for cash payments. The demand continues for tanned goat upper, suede and lining selections at varying prices depending on the quality and selection and some are selling goods consisting all sizes and selections together on “as it is” basis. Exporters say that buying has become a tough task.

(VMK in Indian Leather, February 2011 issue)

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INDIAN LEATHER INDUSTRY IN THE NEW YEAR 2011

INDIAN LEATHER INDUSTRY IN THE NEW YEAR 2011

V.M. Khaleelur Rahman

The latest data available now for the export of leather and leather products made during the period April –November 2010 i.e. US$ 2244.35  million as against US$ 1916.91 million in the corresponding period last year shows that there is a positive growth of 17.08% and Indian leather industry is marching forward leaving the recession behind. The following chart is self-explanatory:

                                                                                                            (Value in million US$)

Product	April-Nov 2009	April-Nov 2010	% Variation
Finished Leather	381.05	485.30	27.36
Leather Footwear	672.19	822.98	22.43
Footwear Components	155.99	156.53	0.35
Leather Garments	245.70	263.59	7.28
Leather Goods	424.54	473.14	11.45
Saddlery & Harness	26.73	30.48	14.01
Non-Leather Footwear	10.72	12.34	15.15
Total	1916.91	2244.35	17.08

(Courtesy: Council for Leather Exports)

As usual the export increase has been highest in the product Finished Leather for which there is continuous demand from different sources but exporters here consider their prices unworkable as raw materials, chemicals, labour charges have all become costly now. Overseas customers show interest for goat and sheep upper, suede and lining leathers at different prices depending on the quality and selection.

It is reliably learnt that S/C goat upper, suede and lining leathers TR-1/2/3 are sold at around US$ 2.00, 1.80 and 1.10/1.00/0.90 per sq.ft. respectively whereas Sheep All Suedes and LDT have been sold at around US$ 2.50 and 1.90 per sq.ft. respectively. Due to new year holidays export activities were restricted but local demand existed very much during recent weeks. But detailed information is not available at the time of writing this article. However the fact is that almost all the items of leather are on the move in the market. There is shortage of tanned skins in the Chennai market. Even in Erode there is good demand for wet blue cow hides and higher selections are sold at around Rs.80/- per sq.ft. Under this situation even those tanners and products manufacturers who have not been importing hides and skins from abroad are thinking of imports. Tamil Nadu Leather Tanners Exporters & Importers Association (TALTEIA), Chennai has taken a decision and announced that it would lead a delegation for 10 days from 22^nd February to 3^rd March 2011 to Egypt which is a resourceful country for raw material and attend the leather fair to be conducted in Ethiopia for an on the spot study of the prevailing situation in the leather market.

IILF 2011 CHENNAI

The India International Leather Fair (IILF) 2011 to be held from 31^st January to 3^rd February 2011 at the Chennai Trade Centre in Chennai has received a very good response from home and abroad. All sections of the leather trade and industry look to it with interest and hope that it will provide a good opportunity for all concerned to assess the present trends in the world leather industry and conclude considerable volume of business as many leading manufacturers of machinery, chemicals, footwear etc. and suppliers of raw materials are participating and exhibiting their products in it. The co-sponsor of the fair, Council for Leather Exports with its newly elected Chairman Mr. M. Rafeeque Ahmed and newly elected Vice-Chairman Mr. Rajendra Kumar is expected to make this event more and more glamorous and successful this year.

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AEDOL'S ICON "AMBUR TRADE CENTRE" COMES TO LIFE

AEDOL’S ICON “AMBUR TRADE CENTRE “ COMES TO LIFE


V.M. KHALEELUR RAHMAN

Ambur Trade Centre (ATC)- a three storey architecturally well designed and fully air-conditioned structure constructed with contributions from the Government of India and the industry was opened and “Ambur Open” (a two day Exhibition of Footwear Components, Accessories & Finished Leather) organized by the Ambur Economic Development Organisation Ltd (AEDOL) along with the Indian Shoe Federation (ISF) and the Indian Footwear Components Manufacturers Association (IFCOMA) was inaugurated by Mr. K. Alauddin, Principal Secretary, Government of Tamil Nadu on Saturday, 24th July 2010 in a well organized and well attended glittering function held at the ATC in Ambur. It was presided over by Mr. M. Mohamed Hashim, Chairman, Indian Leather Industry Foundation.

Mr. Durai Murugan, Hon’bale Minister for Law, Courts and Prison, Government of Tamil Nadu, who was to declare open the ATC and inaugurate the exhibition, could not come as he was indisposed. He sent his good wishes for the success of the function to the organizers.

Mr. K. Alauddin in his speech asked the industry to utilize the ATC for many useful purposes for its maintenance, development of backward areas, total eradication of pollution etc. and said that “ the Government of Tamil Nadu is always ready to help it “.

As regards the demand made for an airport at Vellore, he said that “the main problem is the distance as one can come from Chennai to Vellore by car or bus in 2 hours. The flying time is half an hour but passengers have to come to the airport one hour before the flight departure time. The common man cannot afford it. The government is willing to have airports in all district headquarters, but the viability is the main problem. If the civil aviation department is willing to consider it, the government will see that the land is available for it as in other airport expansion projects “.

WELCOME ADDRESS

Earlier Mr. M. Rafeeque Ahmed, Chairman, AEDOL welcomed the gathering explaining the importance of the leather and leather products industry and the role the new Centre constructed at the cost of Rs.11.5 crore is to play for its development.

He said that there is an urgent need for the leather clusters to upgrade the existing inadequate infrastructure facility in waste water disposal/sludge disposal which are the major problems confronted by the industry here (as everywhere in the country) to maintain its pre-eminence as the largest producer of leather goods and products and to emerge as an international destination for leather industry and to achieve the norms prescribed by the pollution control authorities of the State and the Centre. This was the reason why both the Amburtec and the Vanitec joined together and formed the Ambur Economic Development Organisation Ltd. (AEDOL) to take advantage of the Government schemes to achieve the aim of zero discharge by recycling the treated water and attain all other existing environment standards including sludge disposal by secure land fill, a system patented by the Central Leather Research Institute, Chennai. The Government of India sanctioned an estimate of Rs.67.33 crore with its subsidy of Rs.43.93 crore.

He further revealed that the Vellore district leather clusters manufacture a wide range of leather and leather products in accordance with International Standards providing direct employment to more than 60,000 people and indirect employment to another 30,000 people mostly from the economically weaker sections of the rural society and export to the tune of Rs.3500 crore annually and also meet a sizeable domestic demand of the country. According to him, Ambur, one of the major leather clusters in Tamil Nadu which has been recognized as “ Town of Export Excellence “ for leather products will get additional focus support and incentives for the development of the industry and infrastructure facilities for the cluster and achieve the target of doubling the current annual export of Rs.1800 crore by 2014.

As regards the Ambur Trade Centre, Mr. M. Rafeeque Ahmed said that the AEDOL constructed it with an estimate of Rs.11.5 crore with the government subsidy of Rs.5.9 crore to provide a world class multi purpose trade centre for the leather industry. It has got ground plus three floors in addition to an A/c shed with a total capacity of 40,000 sq.ft. and has facilities like exhibition hall, convention centre, conference hall, training and testing centre, e-readiness centre and guest rooms for the visiting entrepreneurs and overseas customers. It will provide a platform for holding international exhibitions, conferences, workshops and also testing and training services to the leather industry in the region. He thanked the State and Union governments for the huge financial support and pragmatic advice so willingly extended to all the above projects. He also thanked the CLRI and others for their unstinted co-operation and assistance.

He further pointed out, “the Ambur Open is the biggest congregation of businessmen, technocrats, entrepreneurs in the specialized leather sector as well as of a large number of participants. This event of international class in its appeal and material content provides a platform for exhibiting the capabilities of Indian leather and leather products sector and showcase its developments to the world.”

Mr. M. Mohamed Hashim delivered his presidential address praising the AEDOL Chairman for his excellent initiative and untiring endeavours in achieving the Ambur Trade Centre for the development of the industry.

Mr. Habib Hussain, Chairman, Council for Leather Exports, Mr. B.D. Bhaiya, President, IFCOMA, Mr. R.V. Gopalakrishna, President, ISF, Mr. Abdur Rahman, M.P., Mr. Gandhi, M.L.A., Mr. Basith, M.L.A and others also spoke. Mr. N. Mohamed Sayeed proposed the vote of thanks.

ISF AND IFCOMA

The first ever “ Ambur Open “ exhibition attracted 120 exhibitors from different categories such as Finished Leather, Machinery Spares, Sole, Insole, Syn.Linings, Leather Soles, Software, Testing etc. ISF and IFCOMA partnered AEDOL by conducting the 5th edition of the exhibition of Footwear Components, Accessories & Finished Leather in the Ambur Open exhibition. It was highly successful.

While Mr. P.V. Gopalakrishna, President, ISF was extremely happy that there was an overwhelming support to the fair to the extent that they could not accommodate many people by saying that that their commitment to quality, service and delivery had endeared them to the participants who, he was confident, would take part in their future fairs also as it brings good returns to participants in a very pleasant atmosphere, Mr. B.D. Bhaiya, President, IFCOMA stated that they wanted to achieve the avowed goal of firmly establishing India as the world’s most preferred destination for sourcing of leather and leather products by harnessing collective efforts by all towards this goal. He considered the Ambur Open as a right step in the direction and hoped that it would be very successful in generating genuine business interest among the national and international visitors.

Mr. C. Rajendran, IAS, Collector, Vellore district, released the book titled “History of Leather Industry in Vellore District”. He spoke about the tanneries and shoe factories in the Vellore district and stressed the need for the Zero discharge pollution control system.

SEMINARS

4 (four) seminars conducted on 1) Water Based Adhesives 2) New Developments from BASF for Leather Industry 3) Footprints in Leather and 4) Workshop on “ Building Business values with key customers” and “ Presentation on Skill Development “ were the highlights of the Ambur Open and useful to the people, particularly technicians and entrepreneurs, connected with the industry

SUGGESTION

Hotel Coffee Café was there but the absence of a good vegetarian restaurant and two or three tea/coffee kiosks was regretted by many visitors as well as participants who had bought the stalls in the fair. It is hoped that the organizers will look into this matter and do the needful during the fair next year.

APPRECIATION

The exhibitors were happy to take part in the fair at the Ambur Trade Centre which is surrounded by about 250 tanneries and shoe factories and has easy access to bus terminus and railway station.

Congratulations to Mr. M. Rafeeque Ahmed, the active and powerful Chairman of AEDOL and those who assisted him in establishing the Ambur Trade Centre and starting the Ambur Open exhibition in association with the ISF and the IFCOMA within a short span of time and conducting it successfully to the delight of one and all.

(VMK in Indian Leather, August 2010 issue)

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AEDOL'S ICON "AMBUR TRADE CENTRE" COMES TO LIFE

AEDOL’S ICON “AMBUR TRADE CENTRE “ COMES TO LIFE


V.M. KHALEELUR RAHMAN

Ambur Trade Centre (ATC)- a three storey architecturally well designed and fully air-conditioned structure constructed with contributions from the Government of India and the industry was opened and “Ambur Open” (a two day Exhibition of Footwear Components, Accessories & Finished Leather) organized by the Ambur Economic Development Organisation Ltd (AEDOL) along with the Indian Shoe Federation (ISF) and the Indian Footwear Components Manufacturers Association (IFCOMA) was inaugurated by Mr. K. Alauddin, Principal Secretary, Government of Tamil Nadu on Saturday, 24th July 2010 in a well organized and well attended glittering function held at the ATC in Ambur. It was presided over by Mr. M. Mohamed Hashim, Chairman, Indian Leather Industry Foundation.

Mr. Durai Murugan, Hon’bale Minister for Law, Courts and Prison, Government of Tamil Nadu, who was to declare open the ATC and inaugurate the exhibition, could not come as he was indisposed. He sent his good wishes for the success of the function to the organizers.

Mr. K. Alauddin in his speech asked the industry to utilize the ATC for many useful purposes for its maintenance, development of backward areas, total eradication of pollution etc. and said that “ the Government of Tamil Nadu is always ready to help it “.

As regards the demand made for an airport at Vellore, he said that “the main problem is the distance as one can come from Chennai to Vellore by car or bus in 2 hours. The flying time is half an hour but passengers have to come to the airport one hour before the flight departure time. The common man cannot afford it. The government is willing to have airports in all district headquarters, but the viability is the main problem. If the civil aviation department is willing to consider it, the government will see that the land is available for it as in other airport expansion projects “.

WELCOME ADDRESS

Earlier Mr. M. Rafeeque Ahmed, Chairman, AEDOL welcomed the gathering explaining the importance of the leather and leather products industry and the role the new Centre constructed at the cost of Rs.11.5 crore is to play for its development.

He said that there is an urgent need for the leather clusters to upgrade the existing inadequate infrastructure facility in waste water disposal/sludge disposal which are the major problems confronted by the industry here (as everywhere in the country) to maintain its pre-eminence as the largest producer of leather goods and products and to emerge as an international destination for leather industry and to achieve the norms prescribed by the pollution control authorities of the State and the Centre. This was the reason why both the Amburtec and the Vanitec joined together and formed the Ambur Economic Development Organisation Ltd. (AEDOL) to take advantage of the Government schemes to achieve the aim of zero discharge by recycling the treated water and attain all other existing environment standards including sludge disposal by secure land fill, a system patented by the Central Leather Research Institute, Chennai. The Government of India sanctioned an estimate of Rs.67.33 crore with its subsidy of Rs.43.93 crore.

He further revealed that the Vellore district leather clusters manufacture a wide range of leather and leather products in accordance with International Standards providing direct employment to more than 60,000 people and indirect employment to another 30,000 people mostly from the economically weaker sections of the rural society and export to the tune of Rs.3500 crore annually and also meet a sizeable domestic demand of the country. According to him, Ambur, one of the major leather clusters in Tamil Nadu which has been recognized as “ Town of Export Excellence “ for leather products will get additional focus support and incentives for the development of the industry and infrastructure facilities for the cluster and achieve the target of doubling the current annual export of Rs.1800 crore by 2014.

As regards the Ambur Trade Centre, Mr. M. Rafeeque Ahmed said that the AEDOL constructed it with an estimate of Rs.11.5 crore with the government subsidy of Rs.5.9 crore to provide a world class multi purpose trade centre for the leather industry. It has got ground plus three floors in addition to an A/c shed with a total capacity of 40,000 sq.ft. and has facilities like exhibition hall, convention centre, conference hall, training and testing centre, e-readiness centre and guest rooms for the visiting entrepreneurs and overseas customers. It will provide a platform for holding international exhibitions, conferences, workshops and also testing and training services to the leather industry in the region. He thanked the State and Union governments for the huge financial support and pragmatic advice so willingly extended to all the above projects. He also thanked the CLRI and others for their unstinted co-operation and assistance.

He further pointed out, “the Ambur Open is the biggest congregation of businessmen, technocrats, entrepreneurs in the specialized leather sector as well as of a large number of participants. This event of international class in its appeal and material content provides a platform for exhibiting the capabilities of Indian leather and leather products sector and showcase its developments to the world.”

Mr. M. Mohamed Hashim delivered his presidential address praising the AEDOL Chairman for his excellent initiative and untiring endeavours in achieving the Ambur Trade Centre for the development of the industry.

Mr. Habib Hussain, Chairman, Council for Leather Exports, Mr. B.D. Bhaiya, President, IFCOMA, Mr. R.V. Gopalakrishna, President, ISF, Mr. Abdur Rahman, M.P., Mr. Gandhi, M.L.A., Mr. Basith, M.L.A and others also spoke. Mr. N. Mohamed Sayeed proposed the vote of thanks.

ISF AND IFCOMA

The first ever “ Ambur Open “ exhibition attracted 120 exhibitors from different categories such as Finished Leather, Machinery Spares, Sole, Insole, Syn.Linings, Leather Soles, Software, Testing etc. ISF and IFCOMA partnered AEDOL by conducting the 5th edition of the exhibition of Footwear Components, Accessories & Finished Leather in the Ambur Open exhibition. It was highly successful.

While Mr. P.V. Gopalakrishna, President, ISF was extremely happy that there was an overwhelming support to the fair to the extent that they could not accommodate many people by saying that that their commitment to quality, service and delivery had endeared them to the participants who, he was confident, would take part in their future fairs also as it brings good returns to participants in a very pleasant atmosphere, Mr. B.D. Bhaiya, President, IFCOMA stated that they wanted to achieve the avowed goal of firmly establishing India as the world’s most preferred destination for sourcing of leather and leather products by harnessing collective efforts by all towards this goal. He considered the Ambur Open as a right step in the direction and hoped that it would be very successful in generating genuine business interest among the national and international visitors.

Mr. C. Rajendran, IAS, Collector, Vellore district, released the book titled “History of Leather Industry in Vellore District”. He spoke about the tanneries and shoe factories in the Vellore district and stressed the need for the Zero discharge pollution control system.

SEMINARS

4 (four) seminars conducted on 1) Water Based Adhesives 2) New Developments from BASF for Leather Industry 3) Footprints in Leather and 4) Workshop on “ Building Business values with key customers” and “ Presentation on Skill Development “ were the highlights of the Ambur Open and useful to the people, particularly technicians and entrepreneurs, connected with the industry

SUGGESTION

Hotel Coffee Café was there but the absence of a good vegetarian restaurant and two or three tea/coffee kiosks was regretted by many visitors as well as participants who had bought the stalls in the fair. It is hoped that the organizers will look into this matter and do the needful during the fair next year.

APPRECIATION

The exhibitors were happy to take part in the fair at the Ambur Trade Centre which is surrounded by about 250 tanneries and shoe factories and has easy access to bus terminus and railway station.

Congratulations to Mr. M. Rafeeque Ahmed, the active and powerful Chairman of AEDOL and those who assisted him in establishing the Ambur Trade Centre and starting the Ambur Open exhibition in association with the ISF and the IFCOMA within a short span of time and conducting it successfully to the delight of one and all.

(VMK in Indian Leather August 2010 issue)
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1. CURRENT ACTIVITIES IN CHENNAI LEATHER MARKET 2. EXPO RIVA SCHUH, ITALY: A GREAT SHOW OF SHOE MANUFACTURERS

CURRENT ACTIVITIES IN CHENNAI LEATHER MARKET

V.M. KHALEELUR RAHMAN

There is good demand for tanned and crust goat skins particularly in grain, suede and lining grades in the local market. Shoe, garment and leather exporters are here covering their requirements. There is increased demand for wetblue cow hides also by shoe manufacturers. Prices have also registered about 10 to 15% rise. Even prices of raw hides and skins have gone up in many raw centres. Shoe factories are also engaged as ever in importing hides and skins from different countries for their requirements as higher grades are not available in the domestic market to the extent of their needs.

There is demand for finished leathers by overseas buyers but activities are somewhat restricted as they are not able to pay the asking prices of tanners and exporters here which are around the following prices:

S/C goat upper leather

Size : 3/5 sq.ft., Selection : A/B/C 20/40/40%, Price : US$ 1.80, Selection : D, Price : US$ 1.50, Selection : E Price : US$1.40

S/C goat lining leather

Size : 3/5 or 4/7 sq.ft., Selection : TR-1 Price : US$1.20, Selection : TR-2 Price : US$ 1.10 and Selection : TR-3 Price : US$1.00

Some tanners quote selection TR-1/2/3 combined at US$1.10 combined.

F/C goat suede leather for garment

Size : 4/7 sq.ft. Selection : ABC, Price : US$1.70

All prices are per sq.ft. C&F by sea and 10 Cents more for AIR delivery.

One feels that the above prices are most reasonable in the present time when prices of raw hides and skins, chemicals, labour charges etc. have shot up considerably.

CLRI to create fuel from tannery waste

It is reported that the Central Leather Research Institute (CLRI) researchers are to create fuel using tannery and slaughter house waste. They are thinking of setting up plants in Chennai and Ranipet to convert the waste into hydrogen and the hydrogen is then turned into fuel cells that can be used for running vehicles. When it comes into effect, it will be considered a big achievement of the Institute which has been playing a vital role in making the leather industry more and more progressive on scientific norms.

‘AISHTMA’ delegation to Syria and Iran pontponed

It is now learnt that the planned visit of a delegation of All India Skin & Hide Tanners and Merchants Association (AISHTMA) to Syria and Iran was postponed without mentioning a date.



EXPO RIVA SCHUH, ITALY : A GREAT SHOW OF SHOE MANUFACTURERS

Indian shoe sector plays an important role in the leather and leather products industry. According to the Council for Leather Exports, India is the second largest global producer of footwear after China on the basis of its production being 13% of global footwear production of 16 billion pairs. It is well known that the government of India has adopted a progressive policy and has been encouraging the leather products sector since about 25 years.

Indian footwear sector is de-licensed and the government is also establishing footwear complexes and footwear components parks in the shoe manufacturing clusters. There is no doubt that the Indian shoe industry has made a tremendous progress and earned a high reputation in Indian and overseas markets for its quality and reliability. Its share of export is US$1533.66 million or about Rs.7,500 crore i.e. about 42.62% of the total export of leather and leather products during 2008-09. This is the reason why many shoe companies in countries like Italy, Spain and Portugal have entered into collaborations with their counterparts in India. Even the U.S. Retail giant Wal-Mart has started sourcing footwear from India since the last two years.

Indian shoe companies have been making all varieties of footwear like Dress Shoes, Moccasins, Casuals, Sports Shoes, Boots, Sandals, chappals etc. for the leading brands in the world. Indian leather industry envisages an export target of US$3.37 billion or about Rs.16,000 crore for export of footwear by 2013-14.

In Tamil Nadu and some other states in the country more and more shoe units are being established making the leather and leather products industry a vital one in providing employment opportunities and earning foreign exchange for the country. Many shoe units have also come up in many places like Ambur for doing job works and are in good demand. Big shoe factories are interested in giving job works to such units for mutual benefits.

Only a very few Indian shoe manufacturers have entered the domestic retail market. It is learnt that some are thinking of opening their show rooms in big cities in our country, to start with. There is good market for footwear in the country.

The falling exchange rate of Euro is a big problem for exporters. Nobel laureate Mr. Joseph Stiglitz who was the World Bank’s chief economist has said recently that “The Euro will survive but it will probably be patchwork by patchwork, coming up with whatever is judged as the minimum amount required at the moment. That’s a real concern; global financial markets may be plagued by volatility for years to come”.

Many experienced exporters feel that the Indian leather industry has to see things in the proper perspective and move forward cautiously getting as much stimulus as possible from the government shunning their vested interest and burying their hatchet to safeguard the age old and highly potential leather industry and our national interests.

The Council for Leather Export is participating in the International Shoe Fair, 74th edition of EXPO RIVA SCHUH to be held from 12th to 15th June 2010 at Riva del Garda in Italy. As it is an important event, according to the Council sources, 57 leading Indian shoe manufacturers and exporters will participate and display their latest products for Spring-Summer 2011 in the pavilion organized by the CLE.

In spite of the year old world recession, the Indian shoe industry is on the move with its best efforts.

(Indian Leather, June 2010)

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1. CURRENT ACTIVITIES IN CHENNAI LEATHER MARKET 2.EXPO RIVA SCHUH, ITALY : A GREAT SHOW OF SHOE MANUFACTURERS

CURRENT ACTIVITIES IN CHENNAI LEATHER MARKET

V.M. KHALEELUR RAHMAN

There is good demand for tanned and crust goat skins particularly in grain, suede and lining grades in the local market. Shoe, garment and leather exporters are here covering their requirements. There is increased demand for wetblue cow hides also by shoe manufacturers. Prices have also registered about 10 to 15% rise. Even prices of raw hides and skins have gone up in many raw centres. Shoe factories are also engaged as ever in importing hides and skins from different countries for their requirements as higher grades are not available in the domestic market to the extent of their needs.

There is demand for finished leathers by overseas buyers but activities are somewhat restricted as they are not able to pay the asking prices of tanners and exporters here which are around the following prices:

S/C goat upper leather

Size : 3/5 sq.ft., Selection : A/B/C 20/40/40%, Price : US$ 1.80, Selection : D, Price : US$ 1.50, Selection : E Price : US$1.40

S/C goat lining leather

Size : 3/5 or 4/7 sq.ft., Selection : TR-1 Price : US$1.20, Selection : TR-2 Price : US$ 1.10 and Selection : TR-3 Price : US$1.00

Some tanners quote selection TR-1/2/3 combined at US$1.10 combined.

F/C goat suede leather for garment

Size : 4/7 sq.ft. Selection : ABC, Price : US$1.70

All prices are per sq.ft. C&F by sea and 10 Cents more for AIR delivery.

One feels that the above prices are most reasonable in the present time when prices of raw hides and skins, chemicals, labour charges etc. have shot up considerably.

CLRI to create fuel from tannery waste

It is reported that the Central Leather Research Institute (CLRI) researchers are to create fuel using tannery and slaughter house waste. They are thinking of setting up plants in Chennai and Ranipet to convert the waste into hydrogen and the hydrogen is then turned into fuel cells that can be used for running vehicles. When it comes into effect, it will be considered a big achievement of the Institute which has been playing a vital role in making the leather industry more and more progressive on scientific norms.

‘AISHTMA’ delegation to Syria and Iran pontponed

It is now learnt that the planned visit of a delegation of All India Skin & Hide Tanners and Merchants Association (AISHTMA) to Syria and Iran was postponed without mentioning a date.

EXPO RIVA SCHUH, ITALY : A GREAT SHOW OF SHOE MANUFACTURERS

Indian shoe sector plays an important role in the leather and leather products industry. According to the Council for Leather Exports, India is the second largest global producer of footwear after China on the basis of its production being 13% of global footwear production of 16 billion pairs. It is well known that the government of India has adopted a progressive policy and has been encouraging the leather products sector since about 25 years.

Indian footwear sector is de-licensed and the government is also establishing footwear complexes and footwear components parks in the shoe manufacturing clusters. There is no doubt that the Indian shoe industry has made a tremendous progress and earned a high reputation in Indian and overseas markets for its quality and reliability. Its share of export is US$1533.66 million or about Rs.7,500 crore i.e. about 42.62% of the total export of leather and leather products during 2008-09. This is the reason why many shoe companies in countries like Italy, Spain and Portugal have entered into collaborations with their counterparts in India. Even the U.S. Retail giant Wal-Mart has started sourcing footwear from India since the last two years.

Indian shoe companies have been making all varieties of footwear like Dress Shoes, Moccasins, Casuals, Sports Shoes, Boots, Sandals, chappals etc. for the leading brands in the world. Indian leather industry envisages an export target of US$3.37 billion or about Rs.16,000 crore for export of footwear by 2013-14.

In Tamil Nadu and some other states in the country more and more shoe units are being established making the leather and leather products industry a vital one in providing employment opportunities and earning foreign exchange for the country. Many shoe units have also come up in many places like Ambur for doing job works and are in good demand. Big shoe factories are interested in giving job works to such units for mutual benefits.

Only a very few Indian shoe manufacturers have entered the domestic retail market. It is learnt that some are thinking of opening their show rooms in big cities in our country, to start with. There is good market for footwear in the country.

The falling exchange rate of Euro is a big problem for exporters. Nobel laureate Mr. Joseph Stiglitz who was the World Bank’s chief economist has said recently that “The Euro will survive but it will probably be patchwork by patchwork, coming up with whatever is judged as the minimum amount required at the moment. That’s a real concern; global financial markets may be plagued by volatility for years to come”.

Many experienced exporters feel that the Indian leather industry has to see things in the proper perspective and move forward cautiously getting as much stimulus as possible from the government shunning their vested interest and burying their hatchet to safeguard the age old and highly potential leather industry and our national interests.

The Council for Leather Export is participating in the International Shoe Fair, 74th edition of EXPO RIVA SCHUH to be held from 12th to 15th June 2010 at Riva del Garda in Italy. As it is an important event, according to the Council sources, 57 leading Indian shoe manufacturers and exporters will participate and display their latest products for Spring-Summer 2011 in the pavilion organized by the CLE.

In spite of the year old world recession, the Indian shoe industry is on the move with its best efforts.

(Indian Leather, June 2010)



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WHERE DOES THE LEATHER INDUSTRY STAND?

WHERE DOES THE LEATHER INDUSTRY STAND?


V. M. KHALEELUR RAHMAN

The reports available in the world press indicate that the global recovery of the economy is slow as a whole. While it is flat in Europe, it is better in Asia and South America but Chinese economy is growing well with its increasing imports and exports. The World Leather Business Week reported in March 2010 that "leather demand has not just recovered but the cheap raw material prices have also invited non-regular producers to re-enter or expand their productions in view of the attractive profit margins that have been obtainable in leather production in particular in China. This inflated demand and consumption of raw materials has added to the problem of shrinking supply." This seems to be the accurate assessment of the present scenario in the market. However just in about one month's time the prices of raw hides and skins have gone up considerably and even their availability is limited. One wonders if the leather market is also like the glamorous share market where there are more losers and few gainers despite expert consultations.

“AISHTMA” DELEGATION TO SYRIA AND IRAN

The Chennai based All India Skin & Hide Tanners and Merchants Association (AISHTMA) President Mr. M. Rafeeque Ahmed has sent a circular saying that they are planning “to visit Syria and then Iran on a later date also enabling the delegates to visit the 3rd Iranian Leather Exhibition during 25-29 May 2010.” The delegation of the interested members of the Association will leave Chennai on 19th May and return on 27th May 2010. The purpose of the visit is to find possibilities for importing the kind of raw hides and skins, which are in short supply here, to fulfill export targets apart from attending the above mentioned leather show.

EXPORT PERFORMANCE DURING APRIL 2009 TO FEBRUARY 2010

(Courtesy: Council for Leather Exports)

It is clear from the above data that there is a decline of 11.84% in the total exports of leather and leather products in US dollar values during the 11 months (April 2009 to February 2010) in comparison with the same period in the previous 11 months (April 2008 to February 2009)

Tanners who are in the leather industry since long believe that the strict “norms for identification of finished leather” is the main cause for decline of finished leather exports to the extent of 16.78%. They have been saying that tanners are not willing to do finished leather for export as they do not know what will happen to them at the time of export at the customs. The present situation in every field is for the powerful and daredevils. Innocent people cannot thrive in any field particularly in the leather industry as it is becoming more and more risky, tricky and unethical. Many tanners and exporters have even deserted the trade unable to face the current tendencies and challenges. It is rather very difficult if not impossible to survive in the trade for the small exporters who are voiceless and silent spectators to the goings on in the trade and industry.

E.I. TANNED HIDES AND SKINS

Some tanners lament: All the countries in the world allow export of even raw hides and skins, our government allows their imports without any restriction whatsoever but surprisingly despite repeated requests the age old Tamil Nadu speciality tanned hides and skins which are in good demand abroad are not considered at par with finished leather for export. They think that there is no strong lobby to represent this matter to the government.

SHOE INDUSTRY ON BETTER FOOTING

Generally speaking it is the shoe manufacturers who are running the show somewhat better in comparison with others despite global recession, declining exchange rates, increasing prices of raw hides and skins, chemicals etc. and giving employment opportunities to thousands of people, men and women, who mainly belong to the schedule caste, schedule tribe and backward communities, particularly in places like Chennai, Ambur, Ranipet etc. even though they are also handicapped by and large in not getting the required incentives from the government to face the unprecedented situation in the present lacklustre export market.

In spite of all best efforts by exporters, there is a decrease of 10.04% in the export of Leather Footwear and 18.87% in the export of Footwear Components. Exports of other items such as Leather Goods, Saddlery and Harness and Non Leather Footwear have also gone down 15.24, 14.63 and 4.93 per cent respectively. The only item which has shown a meagre increase of 1.65% is Leather Garments.

GENERAL IMPRESSION

The general impression in the market is that there is good demand for goat suedes, sheep nappa is also on the move and so is the case with cow hides in some select grades and marks. Indian exporters are not able to compete with their counterparts in Bangladesh and Pakistan who are getting not only more exchange rates but also more incentives for exports.

FAVOURABLE CHANGES NEEDED

One feels that changes in export and import policies, relaxation in export norms for finished leather, increase in drawback and other incentives are the urgent need of the time to make the leather industry grow and increase its exports in the highly competitive world market.

(Indian Leather, Chennai)

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LEATHER INDUSTRY AND UNION BUDGET 2010-11

LEATHER INDUSTRY AND UNION BUDGET 2010-11
BY V.M. KHALEELUR RAHMAN

The budget presented by the hon’ble Finance Minister Mr. Pranab Mukherjee on 26th February 2010 can be considered as “ people friendly “ because he has given relief to individual taxpayers by widening the personal income tax slab as shown below:

Income For males below 65 years For females below 65 years
Old New Old New
Up to Rs. 1,60,000 Nil Nil Nil Nil
Rs. 1,60,000 to Rs. 1,90,000 10% 10% Nil Nil
For both male and female
Old New
Rs.1,90,000 to 3,00,000 10% 10%
Rs. 3,00,000 to Rs. 5,00,000 20% 10%
Rs.5,00,000 to Rs. 8,00,000 30% 20%
Above Rs. 8,00,000 30% 30%

For senior citizens the exemption limit increased from Rs.2,25,000 to Rs.2,40,000

Contributions to Central Government Health Scheme up to Rs.20,000 are exempted from tax. But gift of gold, silver, other precious metals is taxable after 1.6.2010 if it is not from relative, inherited or on marriage. There is also benefit of deduction for investments up to Rs.20,000 in long term infrastructure bonds over and above existing Rs. 1 lakh limit under Section 80C of IT Act for investing in savings like Provident Fund, Mutual Funds, Insurance schemes etc. However there is no relief for the lower income group.

VIT University Chancellor Mr. G. Viswanathan while asking the government to take measures to prevent foreign universities, if permitted in our country, from grabbing faculty from leading institutions, has suggested that incentives be given to teachers to attract talented persons to teaching profession. In his opinion one of the ways for this can be to grant exemption to teachers from paying income tax or impose a lesser tax as in Pakistan where the tax is just 5% for teachers.

A tanner pointed out that such unexpected but important suggestions are rightly made to improve the conditions of the Indian educational institutions at the present when the proposal for allowing foreign universities in our country is being debated, but there seems to be no such “think tanks” in the leather industry, which is passing through a difficult period, to suggest something necessity for its improvement.

TIRUPUR DYEING UNITS BENEFITED

The one-time grant of Rs.200 crore provided in the budget coupled with the Rs.120 crore grant from the Tamil Nadu government is expected to bring much relief to the Tirupur dyers. No doubt it was the urgent need of the time.

Many tanners and exporters say that we should not be carried away by the glitterings we see in the leather fairs. The fact is that the leather and leather products industry is still struggling for survival and unless there is some support in the forms of increased incentives and drawbacks from the government things cannot move well in the industry in production and export. We cannot forget that there are stiff competitions from countries like China and Pakistan in the world market. The leather and leather products manufacturers and exporters are in a dilemma, not knowing what to do and how to proceed further. The small units are the worst sufferers. Many tanners I interviewed told me that the Council for Leather Exports and other associations are not serious in representing the leather industry to the government.

CONSUMER ITEMS

Consumer items like mobile handsets, battery chargers, play stations, solar powered and electric cars are to cost less and prices of allopathic, homeopathic and ayurvedic medicines will also be somewhat lower as their excise duty was reduced.

Petrol, diesel, domestic air travel, cigarette etc. are to cost more.
It is reported that the Finance Minister Mr. Pranab Mukherjee was a pipe smoker till about 25 years ago. He is not smoking now. He has threatened smokers with more taxes in order to discourage them from smoking. Every right thinking person feels that it is perfectly in order. In the meantime he and his other ministerial colleagues would do well to think of discouraging alcoholism also by all possible ways and after sometime ban it completely. His attempts to make our country healthier and richer are welcome and praiseworthy.

MAT AND EXCISE DUTIES

Many associations hailed the budget as fine or excellent act meant for development but expressed disappointment at many disadvantages including the hike in the Minimum Alternative Tax (MAT) and excise duties. Some of them had been demanding cut in MAT from 15 to 10 percent but the government increased it to 18 percent. MAT is a tax payable by the companies which have received tax benefits or tax exception under various schemes.

Mr. Singhania, President of Federation of Indian Chamber of Commerce and Industry (FICCI), has also said that “by and large the finance minister has provided a stable tax and policy framework for the Indian economy to move forward. However the industry is disappointed that he has raised the MAT rate from 15 to 18% when the industry was demanding a cut down to 10 percent”. He has further said that “the impact of excise duty hike across the board coupled with increase in excise duty on petrol and diesel will add pressure on the price line in current circumstances”.
Mr. M. Rafeeque Ahmed, Chairman, Farida group, has also welcomed the budget for its developmental aspects, hailed the provision of one time grant of Rs.200 crore to Tirupur dyers and expressed concern over the increase in MAT from 15% to 18%.

TANNERS’ DISAPPOINTMENTS

Many tanners and merchants in the leather industry express their disappointment that the leather associations are not as active as they should be to assess its present conditions and make suitable and necessary suggestions to the government to achieve export targets and march forward in the highly competitive world market. According to reliable sources, export of leather is likely to go down in the coming days.

They also regret that in the 2188 member strong organization - Council for Leather Exports –a very few members attend its General Body Meeting every year and hence there is no opportunity at all for discussing burning issues and resolving them in a way acceptable to all.

(Indian Leather, April 2010)
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WAS THE LEATHER FAIR SUCCESSFUL...?

WAS THE LEATHER FAIR SUCCESSFUL….?

V.M.KHALEELUR RAHMAN

The 25th India International Leather Fair 2010 (IILF) organized by the India Trade Promotion Organisation (ITPO) and inaugurated by the honourable union minister for textiles Mr. Dayanidhi Maran, held from 31st January to 3rd February 2010, at Chennai Trade Centre, Nundambakkam, Chennai attracted more participants this year despite the global recession.

A GRAND ANNUAL SHOW

According to Mr. Subas Pani, Chairman and Managing Director, ITPO the display area in the fair was spread over 8400 sq.mts and 437 exhibitors participated in it – 265 from our country and 172 from other 24 countries – which represented an increase of 10% in terms of display area and 13% in terms of number of participants compared to the event last year. He said that the IILF was crossing a major milestone after the seed was sown 25 years ago and it had grown into a high fruit yielding tree providing benefit to the Indian leather industry.

The fair was really a big event, of course an improved one. It provided a good opportunity for the participants to display their products such as machinery, chemicals, leather and leather products like shoes and garments, publications etc. and interact with different industrialists, traders and agents to promote their business. The only thing that upset many visitors was insufficient coffee shops and vegetarian restaurants. The nearby store selling tea, cakes and snacks was crowded and had no sitting place. Many visitors were seen going out of the fair area for tea and lunch. The organizers would do well do look into this matter and arrange for the same in the next fair. However the ITPO deserves congratulations and thanks for its otherwise excellent arrangements in the present market scenario. It has proved that whether it rains or shines, its annual extravaganza takes place undisturbed as ever to the satisfaction of all.

CLE AWARDS FOR BEST EXPORT PERFORMANCE

The hon’ble union minister Mr. Dayanidhi Maran who inaugurated the fair appreciated the leather industry for its contribution to growth, employment generation and foreign exchange earnings and attempts to recover from the impacts of the global recession and urged it to give more importance to value added leather products and safeguarding environment through proper pollution control measures. He assured the industry that the government would extend its support to it for increasing growth and export. Later he handed over the CLE awards to 70 members of the Council for Leather Exports (CLE) under different categories for their best export performance in the year 2008-09 in spite of global economic crisis in the middle of that year and extended his felicitations to them. He also honoured Dr. R. Ganesh Jeevan, Dr. C. Muralidharan and Mr. Mohammed Sadiq with CLE awards in recognition and appreciation of their contributions to the leather industry.

CHAIRMAN, CLE ADDRESS

Earlier Mr. Habeeb Hussain, chairman, Council for Leather Exports welcomed the gathering and said that the late union minister Mr. Murasoli Maran had contributed immensely for setting up the Chennai Trade Centre in 2001 and the IILF had the privilege of hosting its event first in this venue and that he was the architect of the Tannery Modernization Fund, the fruits of which were very much visible. He also said that there was recovery and growth of the leather industry from the recession during the last quarter October-December 2009. He further said, “China and Vietnam had copied a model which India invented 30 years ago and met with huge success in implementing this model i.e. industrial estate with the requisite infrastructure.” He appealed to the hon’ble minister to create a “Mission Mode” for the leather and textile & apparel sectors and set a target of creating an additional one million jobs in the leather sector alone in the next 5 years and possibly many times more than that in the textile & apparel sector.

LEATHER EXPORT IN NEGATIVE GROWTH

The leather and leather products industry is to land in negative growth for the year 2009-10 despite positive growth in export during October and November 2009 as the data provided by the Council for Leather exports shows a fall of 16.13% with its total export of US$2121.80 million during April/November 2009 compared to US$2529.85 million during the same period in 2008.

It is to be noted that that finished leather has recorded a drastic fall of 27.47% in exports from US$524.28 million to US$380.26 million. Two reasons can be attributed for this. One is the dull market situation and the other is the strict norms being followed for identification of finished leather at the customs. Many tanners have given up doing finished leather as they do not want to face the custom problems. This writer had highlighted this earlier also in Indian Leather. If the norms are removed, finished leather exports will double and if the duty on E.I. tanned skins and hides is abolished, it will be exported and our foreign exchange earnings will increase further.

SEMINARS

The CLE and Indian Shoe Federation (ISF) arranged seminars on “Speciality adhesives for footwear & leather – the green future” by Henkel and “The global US shoe market outlook” on 1st February 2010
There were another two seminars on 2nd February 2010 – 1) CLE and IFLMEA seminar on “Journey Towards Excellence” (Lessons from Auto Component Industry) and “Accredited Production & Compliance “ 2) UNIDO-ISF-IFLMEA seminar on “Leather and Footwear Industry” supported by CLE.
All the seminars were well attended and useful to the people in the industry and trade.

The Council for Leather Exports brought out its first issue of LEATHER NEWS INDIA during the fair. Its editorial, Chairman’s write-up and other articles on environment, perspective, technology, trade etc. are informative. No doubt, the trade and industry will welcome and support it.

FAIR WAS SUCCESSFUL BUT …

Many participants said that the fair was successful in all aspects but the volume of business done seems to be on expected lines as the world leather and leather products market is still to come out fully from the impacts of the global recession. However there are many signs of early recovery from this phenomenon as indicated by several Indian and overseas importers and exporters who participated in the fair. The prices quoted by overseas tanners and exporters for their leathers made it clear that there will be good demand for Indian leather and leather products in the world market because of their quality and competitive prices.

(Indian Leather, March 2010)

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AN OVERVIEW OF THE LEATHER INDUSTRY IN TAMIL NADU

AN OVERVIEW OF THE LEATHER INDUSTRY IN TAMIL NADU

V.M. KHALEELUR RAHMAN


Leather industry in Tamil Nadu is considered to be very ancient and some say it is of more than two centuries old. The art of tanning of hides and skins is prevalent here since time immemorial. Once it was done in primitive tanning methods and passed on with some improvements from generation to generation.

After Independence, the leather industry has made a rapid technical and technological advancement, thanks to the efforts of tanners, technical know-how of the Central Leather Research Institute (CLRI) and well chalked out policies of the governments in the state and at the centre based on the recommendations of the Seetharamiah Committee report. Many people established modern tanneries and started doing high quality finished leather meant for shoes, garments, goods, upholstery etc. Many modern units also came up for shoes, garments and goods. All these show that a tremendous industrial development has taken place within a period of about 30 years. No doubt, our country is very much on the forward march....

AISHTMA:

The All India Skin and Hide Tanners and Merchants Association is a 92 years old apex body and various district and regional associations are affiliated to it. Both the central and state governments have recognised it and consult on all policy matters such as labour, taxation etc. It is also in the service of tanners in importing and supplying tanning materials like wattle extract to them. It is also associated with many national and international trade and industry organisations. It celebrated its platinum jubilee in a grand manner in the year 1994. The present President and Hony. Secretary are Mr. M. Rafeeque Ahmed and Mr. Mohan M. Sreenivas respectively.

TAMIL NADU IN THE FOREFRONT

According to Aishtma, Tamil Nadu is in the forefront in leather with an annual production of more than 1.2 billion sq. ft. of finished leather. It is about 60% share in total finished leather production of our country and 45% share in total export from India. There are about 750 tanneries in Tamil Nadu and the raw material processed per day is 500-1000 tons and annual turnover more than Rs.10,000 crore, number of operational CETPs is 16 catering to 630 tanneries, number of ETPs is 94 and there are more than 56 RO plants in Tamil Nadu. No tannery operates without access to any Effluent Treatment Plant and 100% connectivity to pollution control devices is a speciality of Tamil Nadu.

There are 497 leather products units in Tamil Nadu producing about 59 million pairs of full shoes, 27 million pairs of shoe uppers, 7.1 million pieces of leather garments and 29.5 million pieces of leather goods. The quality of various leathers being produced here is of high standard and comparable with that of any advanced country. Consequently the state of Tamil Nadu once popular for E.I. Tanned hides and skins throughout the world particularly in countries like the U.S.A., the U.K., Italy, West Germany, France, Japan etc. is now popular for leather and leather products in these and many other countries. While Chennai, Ambur, Vaniyambadi, Pernambut, Ranipet, Trichy, Erode and Dindigul are the main centres for leather, Chennai, Ambur and Ranipet are the major hub for leather products such as leather shoes, garments and goods. Our country has earned laurels as a good and reliable supplier of leather and leather products in the world market. Interested persons can contact the following association which is, as said earlier, an apex body of different district and regional associations:


The All India Skin and Hide Tanners and Merchants Association,
“Leather Centre”,
43/53, Raja Muthiah Road, Periamet, Chennai – 600 003 (India)

Telephone: 0091-44-25610636, 25615247 Fax: 0091-44-25615292
E-mail: aishtma@vsnl.com and assn@aishtma.com
Website: http://www.aishtma.com


DINDIGUL, THRICY AND ERODE

Dindigul is still a well known centre as before for E.I. tanned goat and sheep skins as most of the tanners here are addicted to doing only this popular item due to various reasons. There are very few tanners in the chrome tanning and no tanner seems to be producing finished leather here. A reliable and traditional tanner who has inherited this trade from his forefathers told me that the present situation is not conducive for switch over to anything like full chrome, semi chrome or finished leather. The association also does not permit it as pollution is involved. Other problems such as labour and water are also there. The progressive policy of the government has not changed this tanning centre much.

While the leather industry has suffered, textile industry has made a good development here in Dindigul. It is said that there are more than 250 spinning mills here.

Other popular centres are Trichy and Erode. There are many tanneries in Trichy where mostly high standard E.I. tanned goat skins are produced and in the Erode tanneries wet blue cow hides are the main items done. Only very few tanners do some other leather items.

PERNAMBUT

This small town has about 35 tanneries where mostly items like buffalo hides and soul leathers are made for local supplies. Some are also exporting these items. Some shoe factories have also been established here. They are mostly doing job works. Much development is not seen here as perhaps there is nobody to guide them for adopting modern approaches for finance and industrial developments.

CHENNAI

There are quite a large number of tanneries and leather goods, shoe and garment factories in different parts of Chennai mainly at Pallavaram and Madhavaram where different items of leather and leather products are made and supplied to national and international customers. There are so many highly modern units where high quality leather and leather products are made and exported.

AMBUR AND VANIYAMBADI

In Ambur, a well known centre for leather, there are quite a large number of tanneries where E.I. tanned goat and sheep skins, S/C and F/C finished leather etc. are produced. Some of the tanneries are very big and modern with all necessary machinery and infrastructure where high class finished leathers meant for shoes, garments and goods are produced and exported. Importers in different countries have close links with Ambur based tanners and exporters and do big contracts as goat and cow leathers are available in plenty here with international standards. There are very few sheep tanners here. This town has also made a name for its well equipped and well infrastructured modern shoe factories where high standard world class foot wears are made and exported to many countries including the U.S.A, U.K, Italy, Germany, Portugal, Switzerland and Spain.

At the time of writing this two industrialists come to my mind who were instrumental for the industrial development here. If I remember correct while the late Anaikar Abdul Shukoor sahib started doing finished leather silently before the government introduced its progressive policy, the late T. Abdul Wahid sahib was also a pioneer in following the government policy and asking tanners to do it for their better prospects in the industrial arena. The latter had to face even criticism for his well intentioned actions. But now the leather industry realises their importance and their foresight.

Another centre famous for the leather industry is Vaniyambadi. Here again there are quite a large number of tanneries where items such as E.I. tanned goat and sheep skins, S/C and F/C finished leathers are made, locally supplied and exported. There are also innumerable job tanners here. It is the best place for dealing in sheep items. We can say that it is the leather tanning centre with the largest number of tanneries in Tamil Nadu. No other centre has as many tanneries as Vaniyambadi does.

Vaniyambadi is just about 30 minutes drive from Ambur. While there are more tanneries in Vaniyambadi, there are more shoe units in Ambur which are supplying to the best shoe companies abroad. These two neighbouring centres are playing an important role in the development of the leather industry in the country.

RANIPET

Ranipet has a large concentration of tanneries like Ambur, Vaniyambadi and Chennai processing hides and skins from raw to finish. Various descriptions of leather such as lining, upper and suede leathers are made here for supply to national and international customers. There are also some job tanneries here. Besides these, there are many highly sophisticated and modern units where world class shoes, garments and leather goods are made and exported. SIPCOT industrial complex is also here. It is yet another well known place for leather and leather products in the world market.

( Indian Leather, February 2010)
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