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    41186744 study-of-indian-leather-industry-2003-version 41186744 study-of-indian-leather-industry-2003-version Document Transcript

    • INDIANLEATHERINDUSTRY Submitted by, AHSAN JAVED ROLL NO. BM-A-20 POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT Submitted to, DR. SHAMSHER YMCA BUSINESS SCHOOL PRICING ANDDOCUMENTATION
    • INDIAN LEATHER INDUSTRY ACKNWOLEDGEMENT“FOR EVERY OPPORTUNITY MAY GOD BETHANKED” I am very thankful to our teacher Dr. Shamsher forhis great assistance to make the successfulaccomplishment of the project. Through his ableguidance and knowledge-based interactions, we havelearnt a lot.I am also thankful to my friends and colleagues for theirsupport and endurance while preparing this project.I would like to thank all the people who have directly orindirectly helped me in completing this project, as andwhen I required. 2
    • INDIAN LEATHER INDUSTRY AHSAN JAVED PREFACEThe project Indian Leather Industry has beencarried out with a view point of understanding therole of Leather Industry in the Indian Trade andIndian economy.As per the objective of the project, I have tried toexplain, analyze and interpret the role of Leathersector in Indian as well as in international trade. 3
    • INDIAN LEATHER INDUSTRY TABLE OF CONTENTSCHAPTE TOPIC PAGE R NO.  Acknowledgement 02  Preface 03  Executive Summary 08  Objectives Of The Study 101. INTRODUCTION TO LEATHER INDUSTRY:  An Overview 11  History Of Leather 12  World Scenario 14  Environmental Aspects for Leather 17 Products2. THE INDIAN LEATHER INDUSTRY:  Indian Scenario 18  Composition Of Indian Leather Exports 20  Strengths Of Indian Leather Sector 21 Export Potential:  India’s Export Of Leather And Leather 22 Products For Five Years 4
    • INDIAN LEATHER INDUSTRY  Import Scenario 25  Major Importing Countries Of Indian 26 Leather And Leather Products  Analysis Of India’s Export Potential 29  Strategies For Indian Leather Sector 32  Major Issues Affecting The Sector 35 Export Performance:  Major Highlights 37  Country-Wise Analysis 39  Trend In Major Importing Countries Of 41 Leather Products  Port-Wise Export Performance 42 44 SWOT Analysis of the Indian Leather Industry3. GOVERNMENT ROLE IN INDIAN LEATHER INDUSTRY:  Prospects For Indian Leather Exports 45  INDAIN Leather Development Program 47 (Implementation During 11th Fine Years Plan)  Supplement To Foreign Trade Policy 51 2004-2009 Announced On 26th February, 2009  Relief Measures Announced By 54 Government Of India To Exporters  Government Support – Policies 57  Leather Industry Tariffs 584. LEATHER INDUSTRY-TRADE ORGANIZATIONS: 5
    • INDIAN LEATHER INDUSTRY  Major Production Centres 60  Leather Institutes 62  Council For Leather Exports 64  Main Markets 66  International Leather Organizations 675. PROMOTION AND MARKETING OF INDIAN LEATHER INDUSTRY:  Entry Into The Market: Basic 71 Consideration  Recent Marketing Efforts To Promote 74 The Indian Leather Industry  International Leather Fairs In India - 75 2008-09  Connecting Indian Leather To The 77 World - Cle At International Fairs/BSMs  List Of Road Shows Organized / To Be 78 Organized In Overseas Countries  Role Of Exim Bank In Promoting Indian 79 Leather Sector6. EXPORT PROCEDURES AND DOCUMENTATION RELATING TO INDIAN LEATHER INDUSTRY:  Export Documents 80  Documents Related To Goods 83  Certificates Related To Shipment 85  Documentation 86  Dutiable Shipping Bills 88  Documents Related To Payment 89 6
    • INDIAN LEATHER INDUSTRY  100% E.O.U 96  Export Procedure 98  List Of Documents Required To Be 103 Submitted By The Exporter To The Various Authorities, Organization And Agents7. FINANCING:  Pre- Shipment Finance 106  Post –Shipment Finance 109  Procedure 110 8. FUTURE PROSPECTS OF INDIAN LEATHER INDUSTRY:  Leather Industry Targets $7 Billion 111 Exports By 2011  Integrated Leather Development 112  Leather Sector Impact-Interim Budget 113 2009-10  Conclusion 115  Weaknesses of Indian leather indusrty 116  Remedial measures 121  Impacts of current recession on Indian 123 leather industry 7
    • INDIAN LEATHER INDUSTRY  Leather industry glossary 126  Leather products 144  Leather Exporters in India 155  Indian Leather Manufacturers 158EXECUTIVE SUMMARYThe basic objective of undertaking this project was tostudy the role of Leather Industry in Indian economy, toexamine the export potential of leather products, toanalyze the various Documents for findings out theadequacy and precision of export facilities by financialinstitutions and the role of Indian Government in Indianleather sector.I collected the data using various primary and secondarysources. (The sources of data collection have beenmentioned at required chapters in my report). 8
    • INDIAN LEATHER INDUSTRYThe Leather Industry is a significant segment of theforeign trade in India. India ranks eighth among theleather producing countries in the world. The industry islabor intensive.The Indian leather industry is provided with institutionalinfrastructure support through premier institutions likeCouncil for Leather Exports, Central Leather ResearchInstitute (Chennai), Footwear Design & DevelopmentInstitute (Noida), National Institute of Fashion Technology(New Delhi), etc in the areas of technologicaldevelopment, design and product development andhuman resource development. The various phases of export are offer and receipt ofconfirmed orders, production and clearance of theproducts for exports, shipment, negotiation of documentand realization of export proceeds and obtaining variousexport incentives. 9
    • INDIAN LEATHER INDUSTRYOBJECTIVES OF THE STUDY 1. To study the role of Leather Industry in Indian economy. 2. To examine the export potential of leather products. 10
    • INDIAN LEATHER INDUSTRY 3. To analyze the various Documents for findings out the adequacy and precision of export facilities by financial institutions. 4. To explain the role of Indian Government in Indian Leather Sector. 5. To suggest any improvements necessary in the existing Leather Industry.CHAPTER ONEINTRODUCTION TO LEATHERINDUSTRYTHE LEATHER INDUSTRY – AN OVERVIEW: 11
    • INDIAN LEATHER INDUSTRYThe leather industry occupies a place of prominence in the Indianeconomy in view of its massive potential for employment, growthand exports. There has been an increasing emphasis on itsplanned development, aimed at optimum utilization of availableraw materials for maximizing the returns, particularly fromexports.Indian leather industry today has attained well meritedrecognition in international markets besides occupying aprominent place among the top seven foreign exchange earnersof the country.There came the long awaited dusk to the complacence of theIndian manufacturers,(the village leather industry in particular)When the long slammed doors of global markets were opened tothe leather industry. As already project by various economicwizards, the leather manufacturers met challenge with a renewedvigor and started capturing markets like Germany, U.S, Italy, U.K.,and France. The very fact that a major market like U.S. has beenchosen to build up positive image for the Indian leather productsand to promote joint ventures adds one more feather in the capof leather industry in presenting a strategy so remarkable.“Leather Fashion”- A Hot Tip:When one talk of leather products coupled with their bulk exports,naturally the buzzword “fashion” comes in question. In order tosurvive in market already filled with competitors, it isindispensable for an exporter to be at par with the latest fashiondevelopment in the country in which he is exporting the goods.When the fashion speaks for itself, it can play a stimulating roleas spearhead of an entire industrial sector .A search for light,purity, clear lines has been acclaimed at the basis for fashion inthe leather products. Elegance is the back with the timeless,thorough bred city –dwellers-inspirations that will characterizethis look. City fashion has new focal points in this new trendtowards elegance. Talking about the contemporary fashion, one 12
    • INDIAN LEATHER INDUSTRYcannot ignore the timeless crocodile and python prints in elegantcameo tones have a slightly old fashioned look that is now veryfashionable. The traditional grained leather, caviar, sharkskin,lizard, clusters and fabrics prints are Omni present, with two-toneeffect and high shine. Thus with the coming back of such age oldand traditional taste in leather products, one cannot clearlydefined that this is the era of renaissance in the Indian.The leather industry has undergone a dramatic transformationfrom a mere exporter of raw materials in the sixties to that ofvalue added finished products in the nineties. Policy initiativestaken by the Government of India since 1973 have beeninstrumental to such a transformation. In the wake ofglobalization of Indian economy supported with liberalizedeconomic and trade policies since 1991, the industry is poised forfurther growth to achieve greater share in the global trade.HISTORY OF LEATHERThe primitive man, even more than 7000 years ago, made andused leather goods. He dried fresh skins in the sun, softenedthem by pounding in animal fats and brains, and preserved themby salting and smoking. Of course, the products were crude,made for protection than as fashion.The Egyptians and Hebrews developed around 400 BC, theprocess of vegetable tanning that involved simple drying andcuring techniquesUnder the Arabs during the middle Ages, the art of leathermaking became quite sophisticated. Morocco and cordovanleathers were in great demand.The ancient puppet theatre in the southern India used primarilyleather dolls. The tradition continues even today.Following the industrial revolution in Europe, power drivenmachines were introduced to perform operations such assplitting, fleshing, and dehairing. The chemical tannage wereintroduced towards the end of 19th century 13
    • INDIAN LEATHER INDUSTRYCOMMON LEATHERS:  cattle, including calf and ox  sheep and lamb  goat and kid  equine animals, including horse, mule, and zebra  buffalo  pig and hog 14
    • INDIAN LEATHER INDUSTRYWORLD SCENARIO:WORLD LIVESTOCK POPULATION:Hides and skins are the basic raw materials for the leatherindustry, which originate from the source of livestock. There wasan upsurge in the number of bovine animals and goats and kidsduring 2007-2008, while population of heap and lambs was on adecline. Developing countries accounted for around 78% of thetotal population of bovine animals and 93% of world population ofgoats and kids.World bovine animal’s population stood at 1,529 million heads in2008. India had the largest number of bovine animals (283 millionheads) with a share of 19% followed by Brazil (13%), China (9%)and USA (6%). World sheep and lambs population stood at 1,079million heads in 2008. With a total population of 170 millionheads, China had a share of 16% in the world sheep and lambspopulation. India (6%) lagged behind at third position, with apopulation of 62 million heads. World goats and kids populationstood at 807 million heads in 2008. China has the highestpopulation of goats and kids, which stood at 195 million heads in2008. Although in 1990, India had the highest population of goatsand kids (21% of the total), it was overtaken by China in 1995 andthe gap between the two countries has been widening.WORLD RAW HIDES AND SKINS PRODUCTION:World production of raw hides and skins was nearly 7 millionmetric tonnes, of which production of bovine hides and skinsalone accounted for 90% in 2008. Developing countries are themajor producers of raw hides and skins.China played a significant role in turning developing countries asthe major source of global imports of raw hides and skins.WORLD LEATHER EXPORTS: 15
    • INDIAN LEATHER INDUSTRYWorld leather exports grew moderately, by a CAGR of 7.3%, fromUS$ 46 billion in 2000 to US$ 61 billion in 2004. World leatherexports can be categorized in to raw hides and skins (40%),leather articles (49%) and fur skins (11%).China, Hong Kong, Italy, USA and France are major exporters ofleather in the world. World leather articles exports increased by aCAGR of 8.06%, from US$ 22 billion in 2000to US$ 30 billion in2004. China constitutes 34% of the total leather articles exports.Hong Kong (17%), Italy (11%) and France (9%) are other majorexporters. India’s exports of leather articles have stabilizedaround US$ 1,033 million in 2008. 16
    • INDIAN LEATHER INDUSTRYWORLD LEATHER IMPORTS:World leather imports can be classified in to raw hides and skins,leather articles and fur skins, with a share of 38%, 55% and 7% ofthe total world leather imports, respectively. Leather articles arepredominantly imported by USA, Spain, UK and Belgium; whereasChina, Mexico, Turkey and Romania are mainly into imports ofraw hides and skins. Hong Kong, USA and Italy are chiefimporters of fur skins. World imports of leather articles areestimated to have grown marginally from US$ 27 billion in 2000to nearly US$ 34 billion in 2008. USA, the largest importer of thisproduct, is predominantly captured by China.China’s share in USA’s import of leather articles has increasedgradually, from 54% in 2000 to 70% in 2008. 17
    • INDIAN LEATHER INDUSTRYENVIRONMENTAL ASPECTS FOR LEATHER PRODUCTS:Manufacturers who produce environmentally sound products willenjoy a competitive advantage in all business relations. The pitchhas to be to successfully emphasis the environmental soundnessof the product in the information to the buyers since majorattention is being paid to the increasing role of the environmentalregulations. Therefore, the manufacturers have to view theirproducts and production processes not just by looking attraditional aspects like price, quality, customer demands, etc. butalso at the environment. Environmentally sound production,consequently, opens new market opportunities.The regulations concerning the ban on the use of Azo Dyes andPCP need to be specially taken care of. Use of both these inputshas been banned due to their carcinogenic nature. Likewise, forcompliance with the German packing regulations, Indiansuppliers have to stick to the basic principle that packagingmaterial be reusable and recyclable. Consumers may have atendency to choose products, which are easily recognizable assuch and are labeled according to legal stipulations. Thehallmark for these environment-friendly products is normallyreferred to as ‘ECO-LABEL’. This indicates that the product ismanufactured in consonance with the environmental regulations. 18
    • INDIAN LEATHER INDUSTRYCHAPTER TWOTHE INDIAN LEATHER INDUSTRYINDIAN SCENARIO:With about 15% of the world livestock population, Indiaaccounted for only 8% of the leather production in 2008.TheIndian leather industry consists of 42,000 small-scale industry(SSI) units, which account for 75% of the total production.Nearly, 2.5 million people earn their livelihood from this sector. Asurvey by Central Leather Research Institute (CLRI) estimatedthat about 1,600 tanneries were present in India in 2000. Theconcentration of tanning industries is mainly in Tamil Nadu, with ashare of 52%. Other states where tanning industry isconcentrated include West Bengal and Uttar Pradesh. Small scale 19
    • INDIAN LEATHER INDUSTRYsector accounts for large processing capacity ranging from 70-87% for different leather products.INDUSTRY AT A GLANCE:  The Indian leather Industry occupies a place of prominence in the Indian economy in view of its substantial export earnings, employment generation and growth.  There has been increasing emphasis on its planned development, aimed at optimum utilization of available raw material for maximizing the returns particularly from exports.  The export of leather and leather products increased manifold over the past decades. The export increased from Rs. 290 mn in 1956-57 and from Rs. 30760 mn in 1991-92 to Rs. 140007.33 mn in 2007-08.  Today the industry ranks 8th in the export trade in terms of foreign exchange earnings of the country.  The composition of export of leather and leather products from India has undergone a structural change during the last three decades, from merely an exporter of raw material in the sixties to that of value added products in the nineties. The value added finished products presently constitute around 80% of the total export from the Industry, which was mere 7% in 1956-57.  India accounts for a share of 2.62% in the global leather trade during 2006. With the exclusion of non-leather footwear, this is slightly higher at 3.41%.  India is the largest livestock holding country -21% large animals and 11% small animals.  A source for 10% global leather requirement  Annual production value US$ 5 billion  Annual export value US$ 3.47 billion 20
    • INDIAN LEATHER INDUSTRY  Export growth CAGR 11.91% (5 years)  About 2.50 million workforce (30% women)  Promising technology inflow and Foreign Direct Investment  Top priority to occupational safety and work environment  Meticulous concern for consumer safety  Compliance to environmental standards  Enormous potential for future growth (domestic as well as export) .COMPOSITION OF INDIAN LEATHEREXPORTS:Composition of Indian leather exports has undergone a radicalchange, from being a mere exporter of raw hides and skins, to astatus of an exporter of value added leather products. From 1991-92, India has been exporting only finished leather because ofexport restriction on semi finished leather. Total leather andleather manufactures exports stood at Rs.10, 286 crores in 2004-05. Leather footwear is the largest component of leather exports,with a share of 26%.ESTIMATED PRODUCTION CAPACITIES: ITEM CAPACITYHides 65 million piecesSkins 170 million pieces 21
    • INDIAN LEATHER INDUSTRYLeather Footwear 909 million pairsLeather shoe uppers 100 million pairsNon-leather footwear 1056 million pairsLeather Garments 16 million piecesLeather Goods 63 million piecesIndustrial Gloves 52 million pairsSaddlers & Harness 12.50 million pieces Source: CLRI STRENGTHS OF INDIAN LEATHERSECTOR:  Own raw material source – 2 billion sq ft of leather produced annually  Some varieties of goat / calf / sheep skins command premium position  Strong and eco-sustainable tanning base  Modernized manufacturing units  Trained / skilled manpower at competitive wage levels 22
    • INDIAN LEATHER INDUSTRY  World-class institutional support for Human Resources Development and R & D activities  Presence of support industries like leather chemicals and finishing auxiliaries  Presence in major markets – Long Europe experience  Preferred sourcing by several international brands – Pierre Cardin, Versace, NEXT, Hugo Boss, Tommy Hilfiger, Florsheim, Clarks, K shoes, DKNY, Liz Claiborne, Guess etc.  Strategic location in the Asian landmass EMERGING STRENGTHS  Design development initiatives by institutions and individuals.  Continuous modernization and technology up gradation.  Economic size of manufacturing units.  Constant human resource development programme to enhance productivity.  Increasing use of quality components.  Shorter prototype development time.  Delivery compliance.  Growing domestic market for footwear and leather articles.EXPORT POTENTIAL:INDIA’S EXPORT OF LEATHER AND LEATHERPRODUCTS FOR FIVE YEARS: 23
    • INDIAN LEATHER INDUSTRY India’s Export was growing at a CAGR of 11.91% in the last 5 years. Global leather import trade was growing at a CAGR of 8.77% during last 5 years. YEARS 2003-04 2004-05 2005-06 2006-07 2007-08CATEGORY (VALUE IN MILLION US$)Finished Leather 555.71 607.73 636.27 724.00 766.93Footwear 767.73 910.77 1045.24 1236.91 1475.83LeatherGarments 301.08 329.44 333.30 309.91 343.99Leather Goods 539.21 585.72 660.17 706.28 784.95Saddlery &Harness 52.71 61.71 77.52 82.33 105.81Total 2216.45 2495.37 2752.50 3059.43 3477.52% Growth 18.20% 12.58% 10.30% 11.15% 13.67% Source: DGCI&S 24
    • INDIAN LEATHER INDUSTRYThe leather industry, one of the major foreign exchange earnersof the country recorded significant growth since the beginning ofthe decade. Today the share of the value added finished productsin the total exports from leather sector are 80% as against 20% in1970s.Export Scenario for the last 5 Years 25
    • INDIAN LEATHER INDUSTRY% Share of Leather Products in ExportPerformance (2007-08):IMPORT SCENARIO: 26
    • INDIAN LEATHER INDUSTRY INDIA’S IMPORT OF RAW HIDES & SKINS AND LEATHER FOR FIVE YEARS: YEARSCATEGORY 2003-04 2004-05 2005-06 2006-07 2007-08 (VALUE IN MILLION US$)Raw Hides & Skins 49.80 50.21 58.21 69.58 84.12Leather 171.01 212.70 233.11 288.85 336.56TOTAL 220.81 262.91 291.32 358.44 420.68 MAJOR IMPORTING COUNTRIES OF INDIAN LEATHER AND LEATHER PRODUCTS 27
    • INDIAN LEATHER INDUSTRYTHE COUNTRY-WISE PERFORMANCE FOR FIVEYEARS:(Value in Million US$) CAGR 2003- 2004- 2005- 2006- 2007- GROWT COUNTRY 04 05 06 07 08 H%GERMANY 329.82 350.79 363.24 410.08 488.72 10.33%.ITALY 285.02 258.23 317.04 413.35 479.04 13.86%.UK 250.65 313.69 345.54 359.84 414.32 13.38%.USA 251.58 290.42 318.36 317.59 306.69 5.07%.HONG KONG 226.97 247.68 252.15 279.72 267.93 4.23%.SPAIN 161.23 176.70 200.18 185.78 212.07 7.09%.FRANCE 109.82 140.00 143.72 174.04 196.17 15.60%.NETHERLANDS 57.75 65.68 82.95 100.82 133.37 23.27%.UAE 37.39 48.03 52.34 62.55 74.53 18.82%.PORTUGAL 34.07 38.38 42.20 49.92 56.06 13.25%.BELGIUM 24.24 35.10 40.20 43.01 54.53 22.46%.CHINA 22.87 34.51 38.71 42.52 51.90 22.73%.AUSTRALIA 32.03 36.41 43.22 39.38 49.74 11.63%.DENMARK 24.66 30.84 40.46 42.30 49.08 18.77%.SWEDEN 19.61 23.49 25.82 29.01 38.81 18.60%.CANADA 25.59 29.70 34.80 32.17 35.90 8.83%.KOREA REP. 25.47 30.98 34.45 36.28 28.80 3.11%.SOUTHAFRICA 20.64 21.71 24.38 35.23 27.49 7.42%.SWITZERLAND 16.64 18.35 21.54 21.92 25.47 11.22%.AUSTRIA 19.12 21.23 23.38 21.79 25.43 7.39%.GREECE 21.11 19.53 21.94 24.22 23.38 2.58%. 28
    • INDIAN LEATHER INDUSTRYSAUDIARABIA 10.61 12.08 14.63 15.77 15.53 9.99%.JAPAN 10.37 10.57 12.37 12.26 15.41 10.40%.RUSSIA 11.33 8.05 11.49 17.18 14.95 7.17%.INDONESIA 8.42 10.22 12.66 12.17 14.90 15.33%.FINLAND 4.23 6.62 7.72 9.87 14.33 35.66%.IRELAND 4.08 5.77 4.56 5.46 8.07 18.59%.NEWZEALAND 4.22 3.28 5.64 6.05 5.60 7.32%.OTHERS 166.91 207.33 216.81 259.15 349.30 20.27%.TOTAL 2216.45 2495.37 2752.50 3059.43 3477.52 11.91%.Source: DGCI & S 29
    • INDIAN LEATHER INDUSTRYCountry-wise Export Performance(2007-08): 30
    • INDIAN LEATHER INDUSTRYANALYSIS OF INDIA’S EXPORT POTENTIAL:India’s major export markets for leather handbags are USA,Germany, UK and Spain. In UK and Spain, Italy is the topexporting country of leather handbags. However, China hasovertaken Italy and emerged as major exporter in markets likeUSA, Canada, Hong Kong and Russia. India has lot of potential inthese markets, as it has unique advantage of economies of scaleand capability of producing niche products.Footwear is a critical segment for the Indian leather industry asthis is expected to be the engine of growth for the Indian leathersector. Currently, the trend in export of Indian footwear has beenencouraging; however the trend for footwear components exportshas been declining. India’s exports offootwear components have dropped from US$ 238 million in2000-01 toUS$ 164 million in 2004-05. Top importers of leather footwearuppers in the world are China, United Kingdom and Canada.World leather garments exports have increased over the years.USA, Germany and Japan were the largest importers of leathergarments in the world in 2004. India was placedamong the top three exporting countries of leather garments inthese markets. Further, India is the largest sourcing partner ofleather garments to Spain and Italy, which are the major marketsfor Indian leather garments. India’s other major export marketsare Germany, USA and France. But, India must be cautious ofChina, as its unit price of leather garments is cheaper than that ofIndia. 31
    • INDIAN LEATHER INDUSTRYINDIAN LEATHER FOOTWEAR INDUSTRYIndia is the worlds second largest producer of footwear; itsproduction estimated over 700 million pairs per annum. At aboutUS $ 300 million per year, footwear accounts for 18 percent shareof total exports of leather exports.Various types of shoes produced and exported from India includedress shoes, casuals, moccasins, sports shoes, horacchis, sandals,ballerinas, and booties. Major production centres are Chennai(Madras), Delhi, Agra, Kanpur, Mumbai (Bombay), Calcutta andJalandhar.Most of the modern footwear manufacturers in India are alreadysupplying to well establish brands in Europe and USA. The largedomestic market and the opportunity to cater to world marketsmake India an attractive destination for technology andinvestments. Equally relevant is it for the footwear componentsindustry, at this juncture, it is posed for real growth anddiversification.INDIAN LEATHER GOODS INDUSTRYItems produced by this sector include, in addition to bags,handbags, hand gloves and industrial gloves, wallets, ruck sacks,folios, brief cases, travel ware, belts, sports goods, upholstery andsaddlery goods.A surfeit of modern units in Chennai, Kanpur and Calcuttaemploying skilled human resources and equipped with modernand sophisticated machinery account for a diversified range ofsuperlative small leather goods including bags, purses, wallets,industrial gloves etc. made of quality leathers of cows, sheep,goats and buffaloes. The products meet the requirement of bulkbuyers and consumers in Europe, USA and Australia. 32
    • INDIAN LEATHER INDUSTRYThe major market for Indian leather goods is Germany, with an offtake of about 25 per cent of the leather goods produced in Indiafollowed by USA, UK, France and Italy. With products ranging fromdesigner collections to personal leather accessories, this sectorhas a share of 20.53 per cent in the leather industry, whilemaintaining an average growth rate of 11 per cent recorded inthe last five years.INDIAN SADDLERY INDUSTRYIndia is one of the largest producers of saddlery and harnessgoods in the world. The saddlery industry was established in the19th century primarily to cater to the needs of military and police.From then on initiatives were taken to develop, the industry andtoday there are over 150 units in the organised sector, out ofwhich approximately 105 are 100% export oriented units.Kanpur, in the state of Uttar Pradesh, is a major production centrefor saddlery goods in India accounting for more than 95% of thetotal exports of saddlery items from India. Kanpur, because of itsspecialization in tanning and finishing of buffalo hides is the onlycentre in the country where harness leather, which is major inputfor saddlery industry, is manufactured.The export of saddlery and harness items has showed an annualgrowth rate of about 40% reaching DM 64 million during 1998-99.The major importers of Indian saddlery are Germany, USA, UK,France, Scandinavia, Netherlands, Japan, Australia and NewZealand.INDIAN LEATHER GARMENTS INDUSTRYThe Leather Garment Industry occupies a place of prominence inthe Indian leather sector. The product classification of leathergarments comprise of jackets, long coats, waist coats, shirts, 33
    • INDIAN LEATHER INDUSTRYpant/short, children garments, motorbike jackets, aprons andindustrial leather garments.Indian leather garments, which entered the world market only inthe mid-eighties with exports of Rs. 15 crores in 1997-98, accountfor about Rs. 1530 crore in 1997-98. The major exportdestination of leather garments from India is Germany. In 1997,German imports of leather garments aggregated DM 1786 millionof which DM 304 million worth of imports went from India. India,China and Turkey were the major suppliers of leather garmentsfor the German market, as they accounted for about 78% of themarket share.Among the three major exporting nations of leather garments,India maintains a similar level of market share of about 20%, inboth German and EU markets.Other markets for India include Italy, U.K., U.S.A. France, Spainand Netherlands. Recently, successful attempt had been madefor exports to Denmark, Switzerland and Canada.STRATEGIES FOR INDIAN LEATHERSECTORThe Indian leather industry is targeting over US$ 5 billion exportsby 2010 and is expected to add about additional 1 million directand indirect jobs during this period. At present, the industryemploys 2.5 million people directly and indirectly.SHIFTING OF MANUFACTURING BASE:Major world tanning firms are in the process of shifting theirmanufacturing base to developing countries due to high wagelevels and strict environmental norms in developed countries.Factors such as availability of leather, production know-how, 34
    • INDIAN LEATHER INDUSTRYprocessing of shoes work in India’s favour. India could effectivelyuse these advantages to augment its share in global productionand exports.GOVERNMENT SUPPORT:Technology up gradation and Modernization of the entire leatherValue chain should be given priority. Recently, the Governmenthas approved Rs. 290 crores for modernization and technology upgradation programme.STRONG PRODUCTION BASE:The industry should lay emphasis on design and technology,quality and innovation and economies of scale. Skill developmentfor the manpower engaged in the sector is vital for enhancing theexport potential of this sector.INVESTMENT BY LARGE CORPORATES:Indian leather industry is dominated by household and small scalesectors. Corporate presence would enhance the capability ofproducing quality leather products. The large capacity would alsobring down the unit cost and increase the competitiveness ininternational markets.NEW MARKETS:Diversification of export markets is another important strategy forIndian leather industry. Consolidation in new markets such asCroatia, Slovakia and Serbia would sustain the export growthmomentum for the Indian leather industry. Imports of leatherarticles by these countries have increased in the range of 20-30% in a period of five years. 35
    • INDIAN LEATHER INDUSTRYNEW TRENDS:The industry needs to keep itself abreast with latest fashiontrends in the sector. It is observed that Italian buyers payattention not only to the quality of the leather products but alsoto the accessories used in the garments. It is imperative thatadequate care is taken about the packing material.DIVERSE MARKETING TECHNIQUES:India needs to adopt aggressive marketing techniques in order toendure global competition. The industry could undertake businessdelegation to secure overseas investments and technologypartnerships, besides building brand image. Developing countrieslike India should have two pronged marketing strategy ofsimultaneously targeting both low price and high quality markets,rather than the traditional strategy of being a low price-lowquality supplier.ENABLING INFRASTRUCTURE:The development of the Calcutta Leather Complex is a positivesign as all amenities are available at one place. Such exclusiveleather complexes could be developed in other major productioncentres. Improvements in efficiency of ports, internal transport,customs procedures and supply chain management arenecessary for augmenting the productivity and exports in thissector.FAIRS AND EXHIBITIONS:It is imperative that Indian exporters participate in fairs andexhibitions organized in the international market. It could serveas a good platform to showcase our products. Lack of information 36
    • INDIAN LEATHER INDUSTRYabout Indian leather manufacturers also acts as a hurdle forinternational buyers.TRAINING FACILITIES:Training programmes should enable the industry to foresee andadapt to changing trends and technology. It is imperative that thestaff is skilled and well qualified to train the students. Further,programmes need to be conducted to make Indian exportersaware of different standards and requirements in the globalmarket to ensure that Indian exports do not get rejected due toenvironmental norms.MAJOR ISSUES AFFECTING THE SECTORThe issues that are hindering the export growth of the Indianleather industry are as follows:ENVIRONMENTAL ISSUES: 37
    • INDIAN LEATHER INDUSTRYThe leather industry is traditionally considered as a pollutingindustry in the tanning and finishing stages of the productionchain. Global standards set by importing countries affect theentry and increase the cost of market access to products ofdeveloping countries. Usage of many chemicals has been bannedby various countries. The product specifications for leather areconstantly under review, leading to greater stringency.IMPACT OF PETA:Campaigns by NGOs, such as People for Ethical Treatment ofAnimals (PETA), related to cruelty against animals have led toboycott of Indian leather products by many foreign companies.WTO RELATED MATTERS:With the advent of WTO, the average and bound tariffs formanufactured products have fallen in the developed countries.However, the average and bound tariffs for leather productsremain relatively high. Many developed countries areimplementing Technical Barriers to Trade (TBT) as Non-TariffBarriers to restrict leather exports from developing countries likeIndia.COST ESCALATION:Leather exporters have to meet domestic as well internationalenvironmental norms. Testing and certification requirements addto the However, it is observed that small supplier firms may notbe able to comply with stringent environmental standards. Highcosts of compliance impose real economic costs on firms.CHINESE COMPETITION: 38
    • INDIAN LEATHER INDUSTRYChinese leather industry ranks top on the raw material resources,product yield and import and export trade in the world. China isone of the major competitors to India’s leather sector as it has thecapability to produce largevolume at low price. Chinese leather exports have increased bythree-fold after its entry into WTO. THE INDIAN LEATHER INDUSTRY IS ORGANIZED AS FOLLOWS  Tanning & finishing  Footwear & Footwear Components  Leather Garments  Leather Goods (bags, wallets, belts, gloves, accessories)  Saddlery and harness articles EXPORT PERFORMANCE 39
    • INDIAN LEATHER INDUSTRYAnalysis of Export Performance of leather and leather productsduringApril-October 2008 vis-à-vis April- October 2007 1.0 INTRODUCTION:As per DGCI& S monthly export data, the export of leather &leather products for the period April-October 2008 touched US$2250.79 million against the performance of US$ 2024.62 millionin the corresponding period of last year, registering a positivegrowth of 11.17% in Dollar Terms. In rupee terms the exporttouched Rs.98058.07 million against the previous year’sperformance of Rs.82370.01 million showing a positive growth of19.05%.A Statement showing the Product-wise Exportperformance during April-October 2008 vis-à-vis April-October 2007 is given below: (Value in Million Rs) CATEGORY APR-OCT APR-OCT 2007 2008 % VARIATIONFinished Leather 19298.36 20384.69 5.63%Leather Footwear 26372.66 31939.30 21.11%Footwear Components 6565.61 7207.17 9.77%Leather Garments 8484.11 11381.91 34.16%Leather Goods 18039.54 23276.98 29.03%Saddlery & Harness 2488.15 2654.77 6.70%Non-Leather Footwear 1121.58 1213.25 8.17%TOTAL 82370.01 98058.07 19.05%Source : DGCI &S 40
    • INDIAN LEATHER INDUSTRY (Value in Million US$) CATEGORY APR-OCT APR-OCT 2007 2008 % VARIATIONFinished Leather 474.35 467.90 -1.36%Leather Footwear 648.23 733.12 13.10%Footwear Components 161.38 165.43 2.51%Leather Garments 208.54 261.26 25.28%Leather Goods 443.40 534.29 20.50%Saddlery & Harness 61.16 60.94 -0.36%Non-Leather Footwear 27.57 27.85 1.02%TOTAL 2024.62 2250.79 11.17%1.1 MAJOR HIGHLIGHTS:  Export of Footwear (leather, footwear components & non- leather footwear) has increased from US$ 837.18 million during April-October 2007 to US$ 926.40 million in April- October 2008, registering a growth of 10.66%  In Dollar terms, leather footwear has alone grown by 13.10% and footwear components by 2.51% and Non- leather footwear by 1.02%.  In Dollar terms, export of Leather Garments has increased by 25.28% and Leather Goods by 20.50%. Export of Saddlery & Harness and Finished Leather marginally declined by 0.36% and 1.36% respectively. 41
    • INDIAN LEATHER INDUSTRY2.0 COUNTRY-WISE ANALYSIS • The major markets for Indian leather products are-  Germany (13.63%)  Italy (13.30%)  UK (11.61%)  USA (9.48%)  Hong Kong (7.08%)  France (5.72%)  Spain (5.72%)  Netherlands (4.21%)  U.A.E., (2.58%)  Denmark (1.69%)  Belgium (1.55%)  Australia (1.41%) 42
    • INDIAN LEATHER INDUSTRYThese 12 countries together accounts for nearly 77.98% ofIndia’s total leather products export. • Overall positive growth is seen in markets like- o Germany 9.51% o USA 11.98% o UK 8.68% o Italy 10.20% o France 21.26% o Spain 11.37% o Netherlands 27.73% o Australia 12.55% o Denmark 39.89% 43
    • INDIAN LEATHER INDUSTRY• Overall decline is seen in markets like- o Hong Kong 9.29%, o Russia 15.86%, o Greece 14.55%, o South Africa 23.25%. 44
    • INDIAN LEATHER INDUSTRY3.0 TREND IN MAJOR IMPORTING COUNTRIES OFLEATHER PRODUCTS (In Million US$) Country April-Oct April-Oct % Variation 2007 2008Germany 280.06 306.71 9.51%Italy 271.71 299.42 10.20%UK 240.37 261.23 8.68%USA 190.61 213.44 11.98%France 106.18 128.76 21.26%Spain 115.64 128.79 11.37%Netherlands 74.18 94.75 27.73%U.A.E. 42.29 58.08 37.32%Australia 28.15 31.69 12.55%Hong Kong 175.66 159.35 -9.29% 45
    • INDIAN LEATHER INDUSTRYSource: DGCI & S4.0 PORT-WISE EXPORT PERFORMANCEAs per the Port-wise compilation for the period April-October2008, export of leather and leather products from all the Regionsare showing positive growth. (Value in MillionUS$) APR- APR- %Region OCT Share in OCT Share in Variation Total Total 2007 Export 2008 ExportSouthern 865.20 42.73% 909.55 40.41% 5.13%Western 382.98 18.92% 433.01 19.24% 13.07%Eastern 276.55 13.66% 332.66 14.78% 20.29%Northern 226.43 11.18% 261.93 11.64% 15.68%Central 46.51 2.30% 72.47 3.22% 55.81%Others 226.96 11.21% 241.18 10.72% 6.27%Total 2024.62 100.00% 2250.79 100.00% 11.17%Note: This is purely based on port-wise compilation and does notreflect the accurate regional performance:Source: DGCI& S 46
    • INDIAN LEATHER INDUSTRY 47
    • INDIAN LEATHER INDUSTRYSWOT ANALYSIS OF THE INDIAN LEATHER INDUSTRY STRENGTHS • High Growth • Ready availability of highly skilled and cheap manpower • Large raw material base THREATS OPPORTUNITI • Policy initiatives taken by the ES Government Major part of the industry • Capability to assimilate new is unorganized• Rising technologies and handle large Limited scope for potential in projects mobilizing funds the domestic Continuous emphasis on product through private market development and placements and• Growing design up gradation. public issues fashion (many consciousnes businesses are s globally family-owned)• Use of Difficulty in obtaining information bank loans technology resulting in high and decision cost of private support borrowing software to Stricter international help WEAKNESSES standards eliminate the • Lack of warehousing support High competition from length of the from the government East European production • International price fluctuation countries and cycle for • Huge labour force resulting in other Asian different high labour charges countries products • Lack of strong presence in the Lack of communication• Use of e- global fashion market facilities and commerce in • Unawareness of international skills 48
    • INDIAN LEATHER INDUSTRY direct standards by many players marketingCHAPTER THREEGOVERNMENT ROLE IN INDIANLEATHER INDUSTRY 49
    • INDIAN LEATHER INDUSTRYPROSPECTS FOR INDIAN LEATHER EXPORTS:Exports has brightened in the recent year as India has emergednatural and alternate supplier of leather and leather goods to theglobal market. India has one of the highest concentrations ofcattle population and produces close to 10% of global leatherevery year. Within the export basket, finished leather exports stillconstitute a significant 24%. Footwear as is known is the maindriver of growth with more than 41% of the share in the exportmarket.India with its advantage in the availability of raw material andlarge number of people available in the employment sector withits low manufacturing cost provides ample opportunities forentrepreneurs to invest and grow. Government of India policy ofallowing 100% FDI has opened the gate for global leatherentrepreneurs to explore this leather rich country.Special Economic Zones (SEZs) are created in India for producingleather products. These zones are deemed foreign territorieswhere exports and imports are duty free. A foreign investor canown his factory in these zones and could repatriate 100% profit.There are huge concessions in taxes with five year holiday on theprofit tax (income tax) and another five year with lesserpercentage of tax as compared to units outside the SEZ. Plots areavailable in SEZ for investmentsJoint ventures and business collaborations are the knownbusiness models in Indian leather sector. As the consumption inthe domestic market is increasing day by day, India is poised toimport large quantities of leather from abroad. It would bebeneficial for the overseas brand owners to forge businesspartnerships with the existing manufacturers in India with orwithout equity participation and manufacture goods for domesticmarket. Large numbers of living examples of JVs are there foranyone to see. 50
    • INDIAN LEATHER INDUSTRYGovernment of India is facilitating the development ofinfrastructure by promoting leather product parks. These parksare expected to have a complete link in the supply chain and theyare expected to increase the production of leather goods andproducts in the next five years. 51
    • INDIAN LEATHER INDUSTRYINDIAN LEATHER DEVELOPMENTPROGRAMME (ILDP)IMPLEMENTATION DURING 11TH FIVE YEAR PLAN(2007-12)Leather Sector is the 10th largest manufacturing sector in Indiaand it plays an important role in Indian economy in view of itssubstantial overall output, export earnings and employmentpotential. The Leather Sector employs 2.5 million people withmajority from weaker sections of the society and about 30%women. The Sector is dominated by small and mediumenterprises. In order to augment raw material base, enhancecapacity, address environmental concerns, human resourcedevelopment, attract investment and global marketing of IndianLeather, the Central Government has approved implementation ofthe Indian Leather Development Programme (ILDP) for the 11thFive Year Plan comprising of the following components :- I. INTEGRATED DEVELOPMENT OF LEATHER SECTOR (IDLS) (Outlay Rs. 253.43 crores): This is a 10th plan scheme and is being continued in the 11th plan. The scope of the scheme is enhance to include new units. The scheme would provide assistance in the form of Investment grant @ 30% to SSI and 20% to Non-SSI upto grant of Rs. 50 lakh. Assistance will be provided @ 20% if the grant amount is above Rs. 50 lakh within the ceiling of Rs. 2 crores. The disbursement above Rs. 25 lakh would be made in four equal installments. 52
    • INDIAN LEATHER INDUSTRYII. LEATHER TANNING COMPLEX AT NELLORE (Outlay Rs. 29 crores): This project was proposed to be implemented during the 10th Five Year Plan. However, the project could not take off for want of decision from the Government of Andhra Pradesh. This project aims to increase the capacity of the tanning sector. The project is proposed to be implemented during the 11th Plan. Government of Andhra Pradesh has transferred the required land to LIDCAP, an institution expected to implement the project. A provision of Rs. 29 crores is approved during 11th plan as assistance to develop the infrastructure of the tanning park.III. ESTABLISHMENT OF BRANCH OF FDI (NIFDT) AT FURSATGANJ (OUTLAY RS. 7.17 CRORES): The institute would be a branch of the footwear design and development institute, Noida and would be equipped with facilities of the latest technologies to provide training of international standard with latest technology. The assistance from the Department to the project is Rs. 13.53 crores out of which Rs. 6.36 crores has been released during the 10th plan period. The balance of Rs. 7.17 crores has also been released in December 2007 i.e., during the plan period.IV. FOOTWEAR COMPLEX (OUTLAY RS. 3 CRORES): this is an going scheme of the 10th plan and aims to build a footwear complex near Chennai in 153.65 acres and provide infrastructure facilities for housing large footwear manufacturing units. Infrastructure development towards design and testing centre, display centre, warehousing, common power plant etc. would be provided. State Industries Promotion Corporation of Tamil Nadu Ltd. 53
    • INDIAN LEATHER INDUSTRY (SIPCOT), a State Government undertaking is the implementing agency. The Central Government has released Rs. 11 crores during the 10th plan and the balance of Rs. 3 crores would be released during the 11th Five Year Plan period.V. SADDLER DEVELOPMENT (OUTLAY RS. 10 CRORES): Harness and saddler comprise a wide range of products. The industry had identified up gradation and development of skilled manpower, standardization and development of components accessories and tools, development of iow cost indigenous machinery, and improvement in production techniques and processes as major areas of concern. International Institute of Saddlery Technology and Export Management (Kanpur), a special purpose vehicle constituted under the overall guidance and superintendence of IIT (Kanpur) would continue to provide skilled human resources to meet the of the sector and function as an R & D base for the industry. In order order to achieve the above stated objectives an allocation of Rs. 10 crores has been approved for the XI plan period.VI. SUPPORT TO ARTISAN (OUTLAY RS. 40 CRORES): there are various clusters in Indian making traditional footwear and other leather goods. The aim of component is to promote the clusters at various forums as they are the integral part of rural Indian economy and have potential for generating local employment and export. The artisan clusters (both rural and urban) would be supported for enhancing their designs as per the changing trends and fashion, corpus for revolving funds and obtaining bulk raw material, grant base livelihood support, marketing support 54
    • INDIAN LEATHER INDUSTRY linkages. The broad objective of this component would be to ensure better and higher returns to the artisans.VII. HUMAN RESOURCE DEVELOPMENT (OUTLAY RS. 60 CRORES): HRD mission would target the non-traditional potential workforce in the rural areas. The project would train and prepare the individuals in the rural areas to be fit to work in medium to large industrial units that are likely to be set up. Up gradation of skills of persons already employed in the sector besides training for trainers/ supervisors would also be undertaken. The scheme would lay stress on skill development and technical development especially in cutting and stitching. The training proposed under the scheme would be output linked where at least 75% of those trained would be placed in the industry.VIII. UP-GRADATION OF FACILITIES OF FDDI AND ESTABLISHMENT OF OTHER SUCH INSTITUTES AND CENTRES (OUTLAY RS. 300.07 CRORES): In leather sector, about 3,800 people are trained every year. Against this supply, the demand of the industry is around 1,00,000 skilled person every year for the next five years. In order to meet the growing demand of more skilled person the up gradation of existing facilities has become essential. Rs 10 crores, would be provided for the up gradation of existing FDDI campus at Noida. Assistance would be provided in the form of one-time grant for the creation of capital assets and permanent infrastructure and no recurring cost would be provided. It is proposed that at least three new FDDI campuses each in Tamil Nadu, West Bengal and Haryana would be established 55
    • INDIAN LEATHER INDUSTRY at a cost of Rs. 96.69 crores each during the 11th Plan period to meet the growing demand of leather industry.IX. UPGRADATION OF INFRASTRUCTURE FOR ENVIRONMENT PROTECTION IN LEATHER SECTOR (OUTLAY RS. 200 CRORES): Leather industry and tanning activity in particular, all over the world is linked to environmental concerns. An allocation of Rs. 200 crores has been made in 11th five year plan to address these concerns. Projects for meeting environment concerns would be funded with 50% grants from central Government, 15% from State government and remaining 35% from the industry. The entire Operation and maintenance costs would be borne by the industry.X. MISSION MODE (10 CRORES): This programme envisages attracting investments into the sector and includes provision for research, programme support, surveys and concurrent evaluation etc in leather field. Besides, provisions has also been made for cost on account of advisory and consultancy services in respect of various projects under ILDP being implemented in the 11th Five Year Plan. 56
    • INDIAN LEATHER INDUSTRYSUPPLEMENT TO FOREIGN TRADE POLICY2004-2009 ANNOUNCED ON 26THFEBRUARY, 2009Union Minister for Commerce and Industry Shri Kamal Nathannounced the Supplement to Foreign Trade Policy 2004-09 onFebruary 26, 2009. The major benefits announced in thissupplement are given below:PROMOTIONAL SCHEMES FOR LEATHER, TEXTILESETC.  An amount of Rs. 325 Crores would be provided under Promotional Schemes for Leather, Textile etc. for exports made with effect from 1.4.09. The details of the promotional schemes are expected to be notified in due course.DEPB  Duty credit scrips under Chapter 3 and under DEPB scheme shall now be issued without waiting for realization of export proceeds. The exporters shall be required to submit proof of export proceeds realization within the time limits prescribed by Reserve Bank of India. The issuance of these benefits without BRC would be subject to a Bank Guarantee/LUT in terms of Circular to be issued. This provision shall be applicable for applications made on or after 1.4.2009.ADVANCE AUTHORISATION  Export obligation period against advance authorizations has been extended up to 36 months in view of the present global economic slowdown. 57
    • INDIAN LEATHER INDUSTRY  Supply of an Intermediate product by the domestic supplier directly from their factory to the Port against Advance Intermediate Authorization, for export by ultimate exporter, has been allowed.  For Advance Licenses issued prior to 1.4.2002, the requirement of MODVAT/CENVAT certificate dispensed with in cases where the Customs Notification itself prescribed for payment of CVD. This will help in closure of a number of pending advance licenses.  In case of Advance Authorization for Annual Requirement where Standard Input-Output Norms are not fixed, the provisions in Customs Notification have been amended in line with Foreign Trade Policy. PREMIER TRADING HOUSES  At present, Govt. recognizes Premier Trading Houses based on an export turnover of Rs.10, 000 crores in the previous three years and the current year taken together. In view of the prevailing global slowdown, the threshold limit for recognition as Premier Trading House has now been reduced to Rs.7500 crores.OTHER FACILITATION MEASURES  Re-imbursement of additional duty of excise levied on fuel under the Finance Acts would also be admissible in respect of EOUs. 58
    • INDIAN LEATHER INDUSTRY  Re-credit of 4% SAD, in case of payment of duty by incentive scheme scrips such as VKGUY, FPS and FMS, has now been allowed.  As per the existing procedure, applicants have to submit individual invoices certified by the jurisdictional excise authorities for claiming duty drawback claims. Further, for getting refund of Terminal Excise Duty deemed export ER-1 / ER-3 are required as documentary proof evidencing payment of excise duty. A simplified provision has now been introduced and exporters can now submit a Central Excise certified statement in lieu of individual invoices and a Monthly Statement confirming duty payment in lieu of ER-1/ ER-3, for the purpose of Deemed Export Benefits.  Electronic Message Transfer facility for Advance Authorization and EPCG Scheme established for shipments from EDI ports w.e.f. 1.4.2009. Requirement of hard copy of Shipping Bills dispensed with for Export Obligation discharge.In addition to the above, DGFT andDepartment of Revenue provisions havebeen aligned in following matters: 59
    • INDIAN LEATHER INDUSTRY  Utilization of Duty Credit scrip allowed under Reward Schemes of/ DEPB, of FTP for payment of duty under EPCG Scheme.  Notification of DFIA scheme aligned with FTP provisions.  Department of Revenue shall issue necessary clarification implementing provisions of FTP related to EOUs, thereby allowing them to supply goods and services at Zero Duty to authorized organizations notified for Zero Duty import.RELIEF MEASURES ANNOUNCED BYGOVERNMENT OF INDIA TO EXPORTERS:The Government of India had earlier announced a package ofrelief measures to the exporters on account of the losses sufferedby the exporters due to steep appreciation of Indian Rupeeagainst overseas currencies in the past 8-9 months. The reliefmeasures included upward revision of the DEPB Rates uniformlyfor leather and leather products by 3%, reduction of the interestrates on pre-shipment and post-shipment Rupee Export Credit by2% for the period Apr. 1- Dec. 31st, 2007 for Leather Products and10% reduction in ECGC Premium on Coverage Charges. 60
    • INDIAN LEATHER INDUSTRY SERVICE TAX EXEMPTION ON CERTAIN SPECIFIED SERVICES:The Department of Revenue, Ministry of Finance, Government ofIndia has issued a Service Tax Notification, dated Oct. 2007.The Service Tax exemption has been granted on thefollowing services:S. Taxable ServicesNo. Classification Description under Finance Act, 1994 (1) (2) (3) 1. Section Services provided to an exporter by an 65(105)(d) insurer, including a re-insurer carrying on general insurance business in relation to insurance of said goods 2. Section Services to any person, by a port or any 65(105)(zn) person authorized by the port, in relation to port services, in any manner; 3. Section Services provided by a technical testing and 65(105)(zzh) analysis agency in relation to technical testing and analysis of said goods where such technical testing and analysis is required to be undertaken as per the written agreement between the exporter and the buyer of the said goods 4. Section Services provided by an inspection and 65(105)(zzi) certification agency in relation to inspection and certification of export goods where such technical inspection and certification is required to be undertaken as per written agreement between the exporter and the buyer of the export goods 61
    • INDIAN LEATHER INDUSTRY 5. Section Services to any person, by other port or any 65(105)(zzl) person authorized by that port in relation to port services, in any manner; 6. Section Services provided for transport of said goods 65(105)(zzp) from the inland container depot to the port of export 7. Section Services provided for transport of said goods 65(105)(zzzp) from the inland container depot to the port of export  EXTENSION OF 2% INTEREST REDUCTION ON RUPEE EXPORT CREDIT UP TO MARCH 31ST, 2008: The Reserve Bank of India (RBI) vide Notification dated July13,2007 announced 2% reduction in interest rates on pre-shipment and post-shipment credit for the period Apr. 1 – Dec.31, 2007 to exporters of certain products including LeatherProducts. The RBI has now issued a notification dated Oct. 6,2007 (copy enclosed) extending this benefit to exporters ofvarious products including leather products up to March 31st,2008.  PERMISSION OF INTEREST EARNING ON EEFC ACCOUNT: As members are aware, Exchange Earner’s Foreign Currency(EEFC) accounts are currently permitted to be maintained in theform of non-interest bearing current accounts. 62
    • INDIAN LEATHER INDUSTRYThe RBI has issued a Notification dated Oct. 6th, 2007 throughwhich exporters maintaining EEFC accounts are permitted to earninterest on EEFC account to the extent of outstanding balances ofUS $ 1 million per exporter. Members may note that this is atemporary measure valid up to Oct. 31st, 2008. Accordingly, it willnow be possible for account holders to maintain outstandingbalances to the extent of US $ 1 million in the form of termdeposits up to one year maturing on or before 31st October 2008.The rate of interest will be determined by the banks themselves. GOVERNMENT SUPPORT – POLICIES  The entire leather sector is now de-licensed and de- reserved, paving way for expansion on modern lines with state-of-the-art machinery and equipments. 63
    • INDIAN LEATHER INDUSTRY 100% Foreign Direct Investment and Joint Ventures permitted through the automatic route 100% repatriation of profit and dividends, if investments made in convertible foreign currency. Only a declaration to this effect to the Reserve Bank is required. Promotion of Industrial Parks (one leather park in A.P; one leather goods park in W.B; one footwear park in T.N. and one footwear components park in Chennai) Funding support for modernizing manufacturing facilities during Tenth Plan period 2002-07 Funding support for establishing Design Studios Duty free import of all types of raw materials Duty-free import of embellishments and components under specific scheme Concessional duty on import of specified machinery for use in Leather Sector. Duty neutralization/remission scheme in place like DEPB and Duty Drawback Liberal import-export of consumer products and components Gradual lowering of import tariff - Peak Rate 10% Simplified import-export procedures, facilitating quicker customs clearances LEATHER INDUSTRY TARIFFS 64
    • INDIAN LEATHER INDUSTRYTHE DUTY PRESENTLY APPLICABLE ON RAW MATERIALS, CAPITALGOODS AND INPUT USED BY THE LEATHER & LEATHER PRODUCTSINDUSTRY ARE BRIEFLY STATED BELOW:The raw hides and skins falling under Customs Tariff Heading No.41.01, 41.02 & 41.02 is exempted from import duty in accordancewith Chapter 41 of the Customs Tariff Act.The import of wet blue chrome tanned leather, crust leather,finished leather of all kinds including splits and sides thereofexempted from customs duty in terms of CN 17/2001 vide SI No.136. These are exempted from Countervailing Duty also.Raw, tanned dressed fur skins etc., including lamb fur skins fallingunder Chapter 43.01 & 43.02 have been exempted from BasicCustoms duty in terms of SI No. 137 of CN 17/2001.265 specified machinery & equipments for use in leather &leather products Industry are eligible for concessional import dutyof 5% as per List 6 of CN 17/2001. And these are also exemptedfrom levy of Countervailing Duty (CVD)Certain leather chemicals, finishing axillaries, components,consumables etc used in leather & leather products Industry areeligible for concessional import duty 25% CVD equivalent toCentral Excise duty is leviable on such inputs. These are listedunder List 3A & 3B of CN17/2001 vide SI No. 159.The import of saddle tree required for Harness & Saddlery goodsIndustry and which fall under Sub Heading 3926.90 of theCustoms Tariff, is allowed at concessional duty of 5% in terms ofSI.No. 128 of CN 17/2001.The import of fasteners and poly wadding materials and certainother inputs are allowed duty free import by the manufacture-exporters of leather garments to the extent of 3% of theirprevious year’s export performance.Tags, label, printed bags, stickers, belts, buttons or hangers, 65
    • INDIAN LEATHER INDUSTRYimported by bona fide exporters, are exempted from duty interms of SI No. 130 of CN 17/2001.Tanning extracts like wattle extract, quebracho extract etc areallowed to be imported with 10% Basic Customs Duty. Nocountervailing duty is leviable on Wattle Extract falling underChapter 3201.20. However, import of other vegetable tanningextracts under Chapter 32 would continue to attractcountervailing duty of 16%.4% Special Additional Duty of Customs (SADC) will continued tolevied on imports of all items. However, the imports underAdvance Licenses, DEPB Scheme, EPCG Scheme etc areexempted from levy of Special Additional Duty of Customs,.10% surcharge on the Basic Customs duty has been removed forall the imports.Leather chemicals and finishing axillaries, component,accessories and consumables indigenously produced will besubject to 16% Central Excise duty. 66
    • INDIAN LEATHER INDUSTRYCHAPTER FOURLEATHER INDUSTRY-TRADEORGANIZATIONSThe Indian leather Industry occupies a place of prominence in theIndian economy in view of its substantial export earnings,employment generation and growth.There has been increasing emphasis on its planned development,aimed at optimum utilization of available raw material formaximizing the returns particularly from exportsMAJOR PRODUCTION CENTRES:The major production centers in India for leather and leatherproducts are located in: SOUTH REGIONTamil Nadu Chennai, Ambur, Ranipet, Vaniyambadi, Trichy, DindigulAndhra Pradesh HyderabadKarnataka Banglore NORTHERN REGION 67
    • INDIAN LEATHER INDUSTRYPunjab JalandharHaryana Ambala, Gurgaon, Panchkula and KarnalDelhi Delhi EASTERN REGIONWest Bangel Kolkatta CENTRAL REGIONU.P. Kanpur, Agra WESTERN REGIONMaharashtra Mumbai (Bombay)LEATHER INSTITUTES 68
    • INDIAN LEATHER INDUSTRY Central Leather Research Institute (CLRI),Adyar, Chennai 600020. Footwear Design and Development Institute (FDDI),Noida 201301. National Institute of Fashion Technology (NIFT), New Delhi 110016. Anna University, Sardar Patel Road, Guindy, Chennai 600025. Bharath Institute of Science and Technology, 173, Agharam Road, Selaiyur PO, Chennai 600073. Dr. B.R. Ambedkar Regional Engineering College, P.O., REC Jalandhar 144011. College of Leather Technology,Salt lake City, Calcuttta 700091. Central Footwear Training Institute (CFTI), Agra. AVI School of Fashion and Shoe Technology, S.C.O., 493-94, 2nd Floor, Sector 35-C, Chandigarh. Shoe Design Centre,5477/72, Kikarwala Chowk, Karol Bagh, New Delhi 110005 Central Footwear Training Institute (CFTI), 65/1, GST Road, Guindy, Chennai 600032. 69
    • INDIAN LEATHER INDUSTRY Indian Institute of Leather Products (IILP), 102, Mangalapuram, SIDCO Industrial Estate, Ambattur, Chennai. Prototype Development and Training Centre (PDTC), National Small Industries Development Organization, Guindy Industrial Estate, Ekkaduthangal, PO, Chennai 600097. VTA Institutes of Leather and Leather Products,21, Kailashgiri Road, Udaendram, Vaniyambadi 635734. Muzaffarpur Institute of Technology,Muzaffarpur 842003. Priyadarshini Engineering College, Anna Salai, Konamedu, Vaniyambadi, 635751, Vellore Distt. Harcourt Butter Technological Institute, Kanpur 208002. 70
    • INDIAN LEATHER INDUSTRY COUNCIL FOR LEATHER EXPORTSThe council for Leather Exports was set up in July 1984.A non-profit company registered under the Indian Companies Act, 1956,the Council functions under the Ministry of Commerce,Government of India. The council is entrusted with exportpromotion activities and overall development of the Indian leatherindustry. The Council’s activities also include promoting ForeignDirect Investment and Joint Ventures in the Indian Leatherindustry. The CLE serves as a bridge between Indian leatherexporters and buyers all over the world. COUNCIL’S SERVICES TO THE INDIAN LEATHER INDUSTRY:  Collecting, Collating and disseminating world market intelligence.  Updating the information on global trends in fashion and design, product development.  Dissemination of information of commercial and technological nature through seminars and magazines.  Organizing participation of Indian exporters in international fairs and buyer-seller meets.  Sponsoring sales-cum-study teams and trade delegations. 71
    • INDIAN LEATHER INDUSTRY  Inviting foreign experts for providing technological inputs to Indian leather exporters.  Organizing international leather fairs in India.COUNCIL’S SERVICES TO OVERSEAS BUYERS INCLUDE:  Serving as a focal point for disseminating information on Indian manufacturers and exporters.  Organizing visits of buyers’ delegations dealing with trade information.  Liaising with various international organizations dealing with trade information.  Providing trade and commercial information on Indian leather industry 72
    • INDIAN LEATHER INDUSTRY MAIN MARKETSNORTH AMERICAFor leather jackets of high value these people are ready to payany price.GERMANYFor shoes and upper shoe.EUROPEFor valets, purses, hand bags and ladies itemCISFor all products together more than 25% goes to these parts.OTHER MARKETS:DENMARK,SAUDI ARABIA,SOUTH AFRICA 73
    • INDIAN LEATHER INDUSTRYLATIN AMERICA becoming strong markets for India. INTERNATIONAL LEATHER ORGANISATIONSU.S.A.ALCAThe American Leather Chimists Associationc/o University of Cincinnati - Tanners Bldg, P.O.Box 210014CINCINNATI, OHIO 45221-0014E-mail: donmezk@email.uc.eduFFANYFashion Footwear Association of New York1414, Avenue of the Americas, Suite 203 NEW YORK, N.Y. 10019The Fashion Footwear Association of New York, fondly known asFFANY, is a non-profit organization. Our goal is to promote andimprove the general awareness and demand for fashion footwearand related products and to serve as an advocate of the multi-billion dollar footwear industry globally. FFANY represents 300corporations, and 800 of the most prestigious footwearbrandnamesworldwide. 74
    • INDIAN LEATHER INDUSTRYFFANYs primary purpose is to organize and implement 6international trade shows a year in New York City. All arkets areheld at the Hilton New York located at 1335, Avenue of theAmericas at 54 th StreetFIAFootwear Industries of America1420 K street, NW suite 600 WASHINGTON, DC 20005LLGMALuggage and Leather goods manufacturers of America Inc.NSRANational Shoe Retailers AssociationTrade organisation representing independent shoe retailers.7150, Columbia Gateway Drive, COLUMBIA, MD 21046SSIAShoe Service Institute of AmericaRobert J. Galvin - Webmaster12114 Old Line Center Waldorf, 20602 BALTIMORE, MDSSIA is the Trade Association for the shoe repair industry in NorthAmerica. Founded in 1904, its members are wholesalers,manufacturers and importers of shoe repair and shoe careproducts and machinery.VENEZUELACAFACAVenezuelan Association of Manufacturers of Componentsand Products for the Footwear Industry.Av. San Felipe, Quinta Adina 65, La Castellana, CARACAS 1060E-mail:cafaca@hotmail.comCAFACA promotes the interests of its members both at a national 75
    • INDIAN LEATHER INDUSTRYand international level and is developing an export programmefor the Venezuelan components sector. It is also sponsoring thecomponents fair EXPOCOMP 200.VIETNAMLEFASO VNVietnam Leather and Footwear Association25, Ly Thuong Kiet Str. HANOIE-mail: hhdg@hn.vnn.vnYear of establishment: 1990Vietnam Leather and Footwear Association (LEFASO VN) is asocial economic affiliated and voluntary organization representingmanufacturers, traders, technical and science researchers andservices suppliers engaged in the industry from all sectors of theeconomy those are operating in Vietnam. The Association isestablished and run on the principles of voluntary, equality andmutual benefits among the members.The Association has its own logo, stamp and account. Workingregulation of the Association has been approved by the Ministerof Industry.Targets of the Association are to conduct economic affiliatedactivities, designate and coordinate in action among themembers relating to manufacture, exportation, importation,material supply, product consumption, etc… in the leather andfootwear business, aimed at taking fullest account of the existingpotential, improving product quality and social - economic effectsto the member enterprises, in the meantime, increasingcompetitive edge in export markets and representing a voice forthe members interests. 76
    • INDIAN LEATHER INDUSTRYVietnam Leather and Footwear Association has become an officialmember of the Asian International Footwear Association since1996. The Association plays a key role in promoting internationalcooperation, providing technical - technological and trainingsupport and giving related information.Organization of the Association: The Executive Committeeincludes 16 members representing all economic sectors involvedin the industry throughout the country. The PermanentCommittee consists of 7 members: Chairman, 05 Vice Chairmanand General Secretary. Secretarial group managed by theGeneral Secretary, help the Executive and Permanent Committee.The Association is now having 90 members and new members arecontinuing to join the AssociationVietnam Leather and Footwear Association looks forward tohaving cooperation with all organization and companies at homeand abroad on the different areas of the industry.VIETNAM LEATHER AND FOOTWEAR PRODUCERSASSOCIATIONHead Office: 26, Le Dai Hanh Str. HANOIThe Vietnam Leather and Footwear Producers Association is avolunteer organization with more than 60 members of differenteconomic components in manufacturing and trading areas ;leather, shoes, rubber, plastic, canvas, imitation leather and otherfields of activity concerned.The association has relations with Leather and FootwearAssociations of many countries in the region and in the world.The association has pleasure to get new members from thecountry and abroad based on the principle of volunteer andabiding by the regulations of the Association. 77
    • INDIAN LEATHER INDUSTRYCHAPTER FIVEPROMOTION AND MARKETING OFINDIAN LEATHER INDUSTRYENTRY INTO THE MARKET: BASICCONSIDERATION 78
    • INDIAN LEATHER INDUSTRYA potential supplier seeking to enter the market must ensure firstof all that he can compete with other suppliers on quality andprice. Before embarking on an export venture, the exporter mustbe assured about his product and to which segment he wants toserve. A delicate care of following points can go along a long wayis enabling the exporter to reach the right market.  Segmentation of the market.  Supplying to the upper most group-elite cream of the society.  Since the product is very expensive, the supplier cannot compromise even on simple aspect which may “deglamourize” the hide.  The supplier should make many pieces since they are exclusive – unique.  Since the manufactures is a social trends setters, he has to always keep ahead as he has to offer something new, always i.e. to say that in the export market Change is Constant.  One should never think of reducing the price as for the buyer, even if it is an exceptionally high price because the buyer, here are abnormal buyers not normal buyers.  One should never supply a very big quantity at any given movement he should not supply more than 8-10 pieces each month.Large export organization particularly manufactures exportersmaintain a separate research development with qualify staff forhis purpose. In department collects information about foreignmarket from all available sources and agencies. Even surveys areconducted. The conclusion drawn from such research activities 79
    • INDIAN LEATHER INDUSTRYare supplied to policies maker for forming short term and longterm marketing strategies, which play a decisive role in thesuccess of the whole marketing efforts which is very wellaccepted at the government level and also at the level ofbusiness at present.Various official and all other agencies collect and publish marketinformation for the benefits of exporters, such information isimportant in all types of research activities. In fact, researchactivities, a lot of secondary information is available in exportmarketing though official and non- official agencies in India. Thegovernment has made elaborate institutional arrangement tohelp exporters in the field of market intelligence. It is imperativethat before we sell or market the leather product in theinternational market, we make a very close look and the intensiveabout the various factors influencing the selling of the product.Needless to say, that the study has to be in the light of suchfactors pertaining to the importing country. Absolute care,through sincerity, correctness and relevance of data, rightchannels and perfect contacts alone can lead the exporter toknow the market well.An exporter should thus, take care of the following pointswhile marketing the products: Climate Tradition Demand Government policy Competition FashionCLIMATE:A careful study of the geographical condition and demand of thecountry in which the goods to be exported enables the marketingmanager to trigger the right shot in matters internationalbusiness. The temperate belt in both the hemisphere isconsidered as an ideal location for leather products. 80
    • INDIAN LEATHER INDUSTRYTRADITION:Tradition plays an important role in marketing the leatherproduct. However, this applies only to a few of the leatherproducts, such as shoes or the whole foot ware range in generalas regard other leather products such as jacket the impact oftradition dampens.DEMAND:The need for the particular leather product in the country where itis exported should be ascertained. The demand and supplyshould be on even terms. If the demand is less then we might failto market our product successfully.GOVERNMENT POLICY:The most instances of different government policies in differentcountries are that of quantity restraint or a quota restriction. Inmost of the other countries where quantity restraint is applicableit is the government which fixes the quota for a particular productand the local suppliers do not suffers.COMPETITION:One of the intelligent ways of entering the export market in aparticular country with the level of quality and the price of thecompetitors.FASHION:Fashion is one of the most important and to some extends, ratherinconvenient factor, which affects the selling of the leatherproducts. It is the most important because fashion trends andfashion sensitivity are more apt in the U.S. and western Europeancountries. Coincidentally, leather product enjoys a good market inthese countries. Again, it is an inconvenient factor for an ordinaryexporter because of its flexibility. The fashion trends seem tochange every year and so-called fashion trends have an equalurge to discard the things, which are out of fashion as they havefor embracing the things, which are in fashion. It is therefore, the 81
    • INDIAN LEATHER INDUSTRYduty of the marketing manager to either stay or tune with thelatest fashion or created a new test for the consumer. The latterone being difficult is not just impossible to be done with a carefulstudy of the previous marketing trends. Qualitative advertisingand sales promotion policies new test can be developed. RECENT MARKETING EFFORTS TO PROMOTE THE INDIAN LEATHER INDUSTRY  International Fairs & Buyer- Seller Meets.  International Leather fairs continued to be an effective medium of establish business relation with potential overseas buyers.  The council current year organize participation of Indian leather exporters in 15 major international fairs. Several are in European Union, USA and China.  Buyer – Seller meets between Indian product exporter and overseas importer in several countries like Spain, Portugal, Brazil, Venezuela, Chile, Argentina, Australia, New Zealand, Finland & Estonia. 82
    • INDIAN LEATHER INDUSTRY INTERNATIONAL LEATHER FAIRS IN INDIA - 2008-09S.N DETAILS OF PARTICULARS OF THE PRODUCTS o. THE FAIR ORGANIZER India Trade Promotion Leather Goods Organisation Pragati (like wallets, purses, Bhawan, Pragati Delhi hand bags, travel- MaidanNew Delhi 110001. International ware etc.,), Leather India Trade Promotion Leather Fair Garments, Footwear OrganisationPragati Pragati (including non- Bhavan, Pragati1 Maidan New leather footwear), Maidan,New Delhi - 110 Delhi Footwear 001(India) Components, Phone: 91-11-23378802, Oct 16-18, Finished Leather, 23371965 2008 Accessories, Fax: 91-11-23371869, Saddlery & Harness 1492, 1493 items www.dilfleatherfair.com 83
    • INDIAN LEATHER INDUSTRY Leather Goods India Trade Promotion ( like wallets, purses, OrganisationPragati hand bags, Bhawan, Pragati India travelware etc.,) MaidanNew Delhi - 110 001. International Leather Garments, India Trade Promotion Leather Fair Footwear OrganisationPragati Chennai, India ( including non- Bhavan, Pragati2 leather footwear), Maidan,New Delhi - 110 Footwear 001(India) Jan. 31- Feb. Components, Phone: 91-11-23371390, 3,2009 Finished Leather, 23371822 Accessories, Fax: 91-11-23371874, Machinery and 1492, 1493 Chemicals www.iilfleatherfair.com India Trade Promotion OrganisationPragati Bhawan, Pragati MaidanNew Delhi 110001. International Leather Goods like India Trade Promotion Leather Goods wallets, purses, OrganisationPragati Fair Kolkata , bags, travelware, Bhavan, Pragati3 India luggageware small Maidan,New Delhi - 110 leather goods , 001(India) Feb. 22-24, footwear and leather Phone: 91-11-23371390, 2009 garments 23371822 Fax: 91-11-23371874, 1492, 1493 Email: ppy@itpo-online.com www.ilgfleatherfair.com 84
    • INDIAN LEATHER INDUSTRYCONNECTING INDIAN LEATHER TO THE WORLD -CLE AT INTERNATIONAL FAIRS/BSMSThe Council for Leather Exports regularly organizes GroupParticipation of Indian Member Companies in many leadinginternational leather product fairs and tradeshows.In countries where there are no appropriate leather product fairsbut which have good potential for Indian leather products, theCouncil organizes exclusive interactive Buyer Seller Meets(BSM), taking the assistance of local agencies to market andcoordinate the event. The Government provides fundingassistance to the Council and to Exporters for participation inFairs & BSMs under the Market Development Assistance(MDA) Scheme and the Market Access Initiative Scheme(MAIS), subject to certain eligibility conditions.WSA Show, Las Vegas, USA, Feb. 12-14, 2009Magic Show, Las Vegas, USA, Feb. 16-19, 2009Buyer Seller Meets in Saudi Arabia & Jordan duringFeb/March 2009 85
    • INDIAN LEATHER INDUSTRYBTS Fair of Shoes, Leather & Leather Goods, Poznan,Poland, March 9-11, 2009ILM Winter Styles – International Leather Goods Fair,Offenbach, Germany, March 20-22, 2009Global Shoes Fair Dusseldorf, Germany, March 13-15,2009LIST OF ROAD SHOWS ORGANIZED / TO BEORGANIZED IN OVERSEAS COUNTRIESBY THE CLE DURING 2008-09 • Madrid, Alicante SPAIN May 27-29, 2008 • Sao Paulo, Novo Hamburgo BRAZIL July 2-4, 2008 • Madrid, Elche SPAIN Nov 24-26, 2008 • Birmingham UK Feb 15-17, 2009 alongside the Moda Footwear and Moda Accessories • Milan, ITALY March 5, 2009, alongside the MICAM and MIPEL Fair • HONG KONG March 31- April 2, 2009, alongside the APLF - Fashion Access & Materials Manufacturing & Technology Fair 86
    • INDIAN LEATHER INDUSTRY ROLE OF EXIM BANK IN PROMOTING INDIAN LEATHER SECTORExport Import Bank of India (Exim Bank) has helped the leatherexporting units to modernize and upgrade their productionfacilities, install pollution control and environmental safetysystems of internationally accepted standards and develop exportmarket for value added products through strategic export marketdevelopment plans.Exim Bank implemented Agency Line of Credit and ExportDevelopment Project, joining hands respectively withInternational Finance Corporation (IFC), Washington and theWorld Bank to support small and medium enterprises in theleather sector. 87
    • INDIAN LEATHER INDUSTRYCHAPTER SIXEXPORT PROCEDURE ANDDOCUMENTATION RELATING TOTHE INDIAN LEATHER INDUSTRYDOCUMENTATION AND PROCEDURAL REQUIREMENTSEXPORT DOCUMENTS: 88
    • INDIAN LEATHER INDUSTRYCommercial documentsRegulatory Pre-shipment documentsCOMMERCIAL DOCUMENTS:Commercial documents are those which, by customs of trade, arerequired for affecting physical transfer of goods and their titlefrom the exporter to the importer and the realization of exportsale proceeds.14 out of 16 commercial documents have been standardized andaligned to one another. Shipping order and bill of exchange couldnot be brought within the fold of the aligned documentationsystem because of their very different data elements and havinga very little in common with other commercial documents.The commercial documents may be classified into:  Principal documents  Auxiliary documentsPRINCIPAL DOCUMENTS:1. Commercial invoice2. Packing list3. Bill of lading4. Combined transport documents5. Certificate of inspection/quality control6. Insurance certificate/policy7. Certificate of origin8. Bills of exchange and shipment adviceAUXILIARY DOCUMENTS:1. Performa invoice2. Intimation for inspection3. Shipping instructions 89
    • INDIAN LEATHER INDUSTRY4. Insurance declaration5. Shipping order6. Mate receipt7. Application for certificate of origin8. Letter to the bank for collection/negotiation of documentsREGULATORY PRE-SHIPMENT DOCUMENTS:Regulatory pre-shipment export documents are those which havebeen prescribed by different government departments/bodies incompliance of the requirements of various rules and regulationsunder relevant laws governing export trade such as exportinspection, foreign exchange regulations, export trade control,customs etc.There are 9 regulatory documents associated with thepre-shipment stage of an export transaction and are asfollows:1. Gate pass-I/Gate pass-II (prescribed by central excise authorities)2. AR4/AR4A form (prescribed by central excise authorities )3. Shipping bill/bill of export (prescribed by central excise authorities ) • For export of goods • For export of duty free goods • For export of dutiable goods • For export of goods under claim for duty drawback4. Export application (prescribed by port trust)5. Receipt for payment of port charges6. Vehicle ticket7. Exchange control declaration prescribed by RBI GR/PP forms8. Freight payment certificate 90
    • INDIAN LEATHER INDUSTRY9. Insurance premium payment certificateThe different commercial regulatory documents may beclassified into:  Documents related to shipments,  Documents related to payment;  Documents related to inspection,  Documents related to excisable goods  Documents related to foreign exchange regulations. DOCUMENTS RELATED TO GOODS(I) INVOICE: • CUSTOMS INVOICEThe customs invoice is used in lieu of the commercial invoice in afew importing countries for customs purposes, but the importer 91
    • INDIAN LEATHER INDUSTRYoften needs a commercial invoice too. The customs invoice canbe in a form called the certificate of value. The invoice is self-certified by the exporter. Certain importing countries may requiretheir importers, not the exporters in the exporting country, toprovide the completed customs invoice for customs clearance. • CONSULAR INVOICEThe consular invoice is a specific invoice issued by the Consul ofthe importing country. Many importing countries, mainly lessdeveloped countries, have already phased out this invoice. It isused for customs clearance and other purposes; as such anyerrors or omissions on the invoice may cause problems and finesat the customs in the importing country. The consular invoice is aform of non-tariff barrier. The exporters declaration normally isincluded in a consular invoice. The consular legalization andpayment of a consular fee is required. The consular fee can be apercentage of the FOB invoice value.(II) PACKING LIST:The packing list is the detailed list of contents of the shipment,including quantities, items, model numbers, dimensions and netand gross weights. A packing list should specify per carton orcrate the number and type of units of material inside. The shippergets the packing list ready at the time the goods are being isprepared for shipping.(II) CERTIFICATE OF ORIGIN:The Certificate of Origin is only required by some countries. Inmany cases, a statement of origin printed on company letterheadwill suffice. Special certificates are needed for countries withwhich the United States has special trade agreements, such asMexico, Canada and Israel. 92
    • INDIAN LEATHER INDUSTRYCERTIFICATES RELATED TO SHIPMENT 93
    • INDIAN LEATHER INDUSTRY(I) MATE RECEIPT: Mate receipt is a receipt issued by the commanding office of the ship when the cargo is loaded on the ship, and contains information about the name of the vessel, berth, date of shipment, description of packages, marks and numbers, condition of the cargo at the time of receipt on board the ship etc.(ii) SHIPPING BILL: Shipping bill is the main document forobtaining custom permission for shipping goods. This documentis of four types-  Free shipping bills  Drawback shipping bills  Ex-bond shipping bills(III) AIRWAY BILLS: Airfreight shipments are handled by airwaybills, which can never be made in negotiable form.(IV) BILL OF LADING: It is a contract between the owner of thegoods and the carrier (as with domestic shipments). For vessels,there are two types: a straight bill of lading which is non-negotiable and a negotiable or shippers order bill of lading. DOCUMENTATION 94
    • INDIAN LEATHER INDUSTRYGenerally documentation is perceived to be the most complex,difficult and critical activity of export marketing particularly inIndia. Successful consummation of an export order needsinnovative skills and meticulous planning including propercompliance and subsequent documentary provision.One may categorize export documents into three dimensions onthe basis of their role in smooth flow of trade.REGULATORY CONTROL IN INDIAAfter becoming an exporter company it is required to obtain a(RCMC) from the relevant export promotion council, commodityboard or any other designated body. This certificate is needed forgetting some more export incentives given by the Government ofIndia. Next step in becoming an exporting unit is to obtainimporter-exporter code number from director general of foreigntrade.A) GR FORM / PP FORM:GR FORM / PP FORM in duplicate are required for everyconsignment for obtaining customs clearance. This form isneeded as a legal requirement under the Foreign ExchangeRegulation Act of India. GR FORM is needed for all consignmentsother than ones being shipped by post, while PP FORM is neededfor goods going by post.B)DOCUMENTATION:Various documents originated during export marketingactivities of Moserbaer are defined below: 95
    • INDIAN LEATHER INDUSTRY • SALE ORDER / CONTRACT:It is a premiere document that has to be generated in anytransaction. It is an agreement between buyer and seller, inwhich seller has agreed to buy them, at an agreed price withspecified delivery terms. Delivery terms may be F.A.S, F.O.B, andC&F etc. • F.A.S (FREE ALONG SIDE):In this seller has the obligation to deliver the goods alongside thevessel on the quay. The buyer has to bear all the cost and risk ofloss or damage to the goods. 96
    • INDIAN LEATHER INDUSTRY DUTIABLE SHIPPING BILLSF.O.B (FREE ON BOARD)When the delivery condition is F.O.B, the seller has the liability toload the goods / materials on the vessel specified by the buyer.The transportation, insurance and other agreements are to bemade by the buyer.C & F (COST AND FREIGHT)The seller must pay the costs and freight necessary to bringgoods to the named port of designation but the risk of loss anddamage to the goods is transferred from the seller to the buyer.In case of “International Trade” the buyer and seller separated bydistant boundaries. The buyer or seller initiates the formation ofcontract by sending purchase order or sale order respectively.Sometimes the buyer intimates the seller by sending thepurchase order, or if seller finds the initiative lucrative, he sendshis sale order to the buyer. Thus in this way the parties enter intoa contract with each other. Such type of contract is known as“Constructed Contract”.Various contents of sale order are listed below:a. Price of the productb. Quantity and quality of the productc. Period of deliveryd. Port of deliverye. Standard terms and conditionf. Types of financial arrangements 97
    • INDIAN LEATHER INDUSTRYg. Payment terms DOCUMENTS RELATED TO PAYMENT(i) LETTER OF CREDIT:Under L/C the buyer promise to pay the seller on due date. In thistype of credit, the buyer’s liable to pay. It is thus also known asbanker’s commercial or documentary credit.It is commonly referred as commercial L/C as it a means toopening a credit in favour of someone, under which payment willbe made provided that certain conditions are fulfilled within giventime.PARTIES INVOLVED IN L/C:1. Buyer or importer2. I) Issuing or opening Bank II) Reimbursing Bank3. Seller or exporter or beneficiary4. I) Advising / confirming Bank II) Paying Bank III) Negotiating BankBased on security, L/C can be classified into 3 types:1. REVOCABLE OR IRREVOCABLE: 98
    • INDIAN LEATHER INDUSTRY • A revocable L/C can be cancelled or modified, by the buyer at any time without any notice to the seller. • An irrevocable L/C cannot be cancelled without prior notice to the seller of exporter.2. CONFIRMED OR UNCONFIRMED:When the bank authorized by opening bank confirms anirrevocable L/C, it becomes confirmed. Otherwise the L/C isunconfirmed.3. RECOURSE OR WITHOUT RECOURSE:If the advising bank pays the seller but does not get reimbursingfrom the opening bank, then this bank can recover the wholemoney with interest from the seller.But in case of without recourse, the liability of the exporter endsafter he has deposited the required documents and receivedpayments.(ii) BILLS OF EXCHANGE:It is a document for the goods exported. It is the means ofcollecting money through banking channels and also a method ofpayment by credit. A bill of exchange is also referred as “Draft”.It is a legal document. In India, Section 5 of Negotiable Act, 1881,defines bill of exchange as- “An instrument in writing containing an unconditionalorder, signed by the maker, directing the person to paycertain amount”.(iii) BANK CERTIFICATE OF PAYMENTIt is a certificate issued by the negotiating bank of the exporter,certifying that the bill covering particular consignments has been 99
    • INDIAN LEATHER INDUSTRYnegotiated and that the proceeds received in accordance withexchange control regulation in the approved manner.(iv)DISPATCH INSTRUCTION:Dispatch instruction is almost like sale order. It is an instructionor order given by the company’s marketing department to theplant to dispatch specified goods to the port of any otherdesignations.Contents of dispatch instruction are given below:a. Specification and quantity of materials to be transportedb. Port of dispatchc. Shipment scheduled. Place and port of schedulee. Name of the buyer(v)A.R.4 FORM:It is an application, by the company to the central excisedepartment of custom, for excise relief.In India exportable goods are exempted from duty. Hence if thecompany exports goods to foreign countries, to gain foreignexchange, it applies to central excise department to getexemption, from excise duty, by giving application in a prescribedformat under rules – 158, 185, 1730. This application is known asthe A.R.4 FORM.The contents of A.R.4 FORM are listed below:a) Name and address of range officer 100
    • INDIAN LEATHER INDUSTRYb) Name of the companyc) Port of loadingd) Country of loadinge) Central excise regd. No.f) Number and description of goodsg) Gross weight / net weighth) Value of goodsi) Weight and quantity of goodsj) Duty rate and amountk) Amount of rebate claimedl) Remarksm) Declaration of the company(v)DELIVERY INVOICE: The plant prepares it at the time of removal of goods from theplant. It is meant for excise purpose.It contains the following:a. Quantity of goods dispatchedb. Price of goodsc. Mode of dispatchd. Port of dispatche. Buyer’s detailsf. A.R.4 reference(vi) 101
    • INDIAN LEATHER INDUSTRYPROFORMA INVOICE:It is basically a form of quotation by the seller to the buyer. It is asort of invitation to the buyer from the seller to place a firm orderto him. It is deposited with the custom clearance for estimationof excise duty. It helps in getting custom clearance.A Proforma invoice contains:a. Exporter’s nameb. Consignee’s namec. Notify’s named. Buyer’s namee. Countries of originf. Designation(vii)TEST CERTIFICATE:It is a verification certificate that shows that the goods shippedhave the required cast no. and percentage composition.(viii)INSPECTION CERTIFICATE:It is a document which certifies that the goods have beeninspected (prior to shipment). This certificate is generally desiredby the importer so that he can be sure that right types of goodsordered are being send by the exporter. In India certain goodsare subjected to quality control. For this purpose an agencycalled (EIC) was created.(ix)G.R FORM: 102
    • INDIAN LEATHER INDUSTRYIt is one of the most important documents in internationalbusiness. This form is obtained from R.B.I. This form is filled bythe exporter and is endorsed by the customs. This form is onekind of guarantee given by exporter to R.B.I. The exporter givesguarantee that within “six” months of transaction the foreigncurrency involved will be realized.G.R FORM contains:a. Exporter’s name and addressb. Invoice no. And datec. Consignee’s name and addressd) Port of loading and dischargee) Country of designationf) Exchange rateg) Currency of invoiceh) Net & gross weight, particulars, description(x)SHIPPING BILL:It is the main document on which custom permission for export isgiven. It is custom document. It is a document, which isnecessary for loading the cargo on ship.It contains the following:a. Exporter’s name and addressb. Invoice no. And datec. Port of loadingd. Port of designatione. Details of packages and goods 103
    • INDIAN LEATHER INDUSTRYf. Analysis of export value; currency; amount(xi) MATE RECEIPT: When the cargo is loaded on the ship, the commanding officer /captain of the ship will issue the receipt called the “mate receipt”for goods loaded.It contains the following information:-a. Name of the vesselb. Berthc. Date of shipmentd. Description of packages etc(xii) BILL OF LADING: It is a document which is issued by the shipping companyacknowledging the receipt of goods mentioned there / in andundertaking that the goods are in condition and will be deliveredto the consignee, provided that the freight specified therein isduly paid.It serves the following 3 purposes:  It is a document of title of goods shipped,  It is a receipt for goods, received by the steamship company,  It contains the terms of the contract between the shipper and shipping company(xiii)MARINE INSURANCE:When the goods are transported from one place to another thereis always risk involved. Hence to avoid such transit losses,marine insurance is taken up. In India there are variousinsurance companies, such as General Insurance Company.Insurance Policy is normally done through agents. 104
    • INDIAN LEATHER INDUSTRYMarine insurance contains the following:a. Name and address of the subsidiary of insurance companyb. Claim payablec. Name of the insuredd. Vessel no.e. Place of dispatchf. Port of loading and dispatchg. Destinationh. Insured valuei. Terms of insurancej. Particulars and description of goods 105
    • INDIAN LEATHER INDUSTRY100% E.O.U:Export Oriented Units means an industrial unit offering for itsentire production, excluding rejects and items otherwisespecifically permitted to be supplied to the domestic Tariff Area(DTA). Such units may be set up under the Export Oriented Unit(EOU) scheme or Export Processing Zone (EPZ), ElectronicHardware Technology Park (EHTP). Such units may be engaged inmanufacture/production or trading of any goods, like Hardware.Units engaged in service activities may also be considered onmerits.The scheme of 100% Export Oriented Units (EOUs) wasintroduced in the year 1980 with the objective of generating ofproduction capacity for exports by providing an appropriate policyframe work, flexibility of operations and incentives. In order toenable them to operate successfully in the international markets,such units are allowed to import machinery, raw materials andcomponents and consumables free of customs duties, and ifprocured indigenously, full exemption of excise duty is available.These units have to operate under customs bond and areexpected to achieve the levels of net foreign exchange earningsfixed by the Board of Approval as a percentage of their exports.EOUs are governed by the following basic terms andconditions:• It may be established anywhere in India subject to location criteria, local zoning laws and environmental regulations.• The unit will undertake to manufacture in bonded area and to export its entire period ordinarily of five years.• If a unit approved under this scheme is unable for any reason, to fulfill its export obligations, the Board of Approval will review the case and recommend the future course of action to be taken in regard to that unit.• Once a 100% EOU is de-bonded, it would have to pay the following duties. 106
    • INDIAN LEATHER INDUSTRY• Customs duty on capital goods on the depreciated value but at the rate prevailing at time of import.• Customs duty on unused raw materials, components, consumables and spares of value at the time of import at rates in force at the time of clearance.• In respect of excisable goods, excised duty without any depreciation and at rates applicable at the time of clearance.EOUs established anywhere in India and export 100% its productsexcept certain fixed percentage of sales in the domestic TariffArea as may be permissible under the policy. 107
    • INDIAN LEATHER INDUSTRY EXPORT PROCEDURESSTEP 1:ENQUIRYThe starting point for any Export Transaction is an enquiry. Anenquiry for leather should, inter alia, specify the following detailsor provide the following data.  Leather Type  Part Number (Preferably the OE Makers Part No.)  Full description of the required product.  Size details - Standard or oversize or undersize  Drawing, if available  Sample, if possible  Quantity required  Delivery schedule  Is the price required on FOB or C& F or CIF basis  Mode of Dispatch - Sea, air or Sea/air  Mode of Packing  Terms of Payment that would be acceptable to the Buyer – If the buyer proposes to open any Letter of Credit, any specific requirement to be complied with by the Exporter  Is there any requirement of Pre-shipment inspection and if so, by which agency  Any Certificate of Origin required - If so, from what agencySTEP 2 108
    • INDIAN LEATHER INDUSTRYPROFORMA GENERATIONAfter studying the enquiry in detail, the exporter - be itManufacturer Exporter or Merchant Exporter - will provide aproforma invoice to the Buyer.STEP 3ORDER PLACEMENT:If the offer is acceptable to the Buyer in terms of price, deliveryand payment terms, the Buyer will then place an order on theExporter, giving as much data as possible in terms ofspecifications, Part No. Quantity etc. (No standard format isrequired for such a purchase order)STEP 4ORDER ACCEPTANCEIt is advisable that the Exporter immediately acknowledgesreceipt of the order, giving a schedule for the delivery committed.STEP 5GOODS READINESS & DOCUMENTATIONOnce the goods are ready duly packed in Export worthycases/cartons (depending upon the mode of dispatch), the Invoiceis prepared by the Exporter.If the number of packages is more than one, a packing list is amust. 109
    • INDIAN LEATHER INDUSTRYEven If the goods to be exported are excisable, no excise dutyneed be charged at the time of Export, as export goods areexempt from Central Excise, but the AR4 procedure is to befollowed for claiming such an exemption.Similarly, no Sales Tax also is payable for export of goods.STEP 6GOODS REMOVAL FROM WORKSThere are different procedures for removing Export consignmentsto the Port, following the AR4 procedure, but it would beadvisable to get the consignment sealed by the Central Exciseauthorities at the factory premises itself, so that open inspectionby Customs authorities at the Port can be avoided.If export consignments are removed from the factory ofmanufacture, following the AR4 procedure, claiming exemption ofexcise duty, there is an obligation cast on the exporter to provideproof of export to the Central Excise authorities.STEP 7DOCUMENTS FOR C & F AGENTThe Exporter is expected to provide the following documents tothe Clearing & Forwarding Agents, who are entrusted with thetask of shipping the consignments, either by air or by sea. 1. Invoice 2. Packing List 3. Declaration in Form SDF (to meet the requirements as per FERA) in duplicate. 4. AR4 - first and the second copy 5. Any other declarations, as required by Customs 110
    • INDIAN LEATHER INDUSTRYOn account of the introduction of Electronic Data Interchange(EDI) system for processing shipping bills electronically at most ofthe locations - both for air or sea consignments - the C&F Agentsare required to file with Customs the shipping documents,through a particular format, which will vary depending on thenature of the shipment. Broad categories of export shipmentsare: • Under claim of Drawback of duty • Without claim of Drawback • Export by a 100% EOU • Under DEPB SchemeSTEP 8CUSTOMS CLEARANCEAfter assessment of the shipping bill and examination of thecargo by Customs (where required), the export consignments arepermitted by Customs for ultimate Export. This is what theconcerned Customs officials call the ‘LET EXPORT’ endorsementon the shipping bill.STEP 9DOCUMENT FORWARDINGAfter completing the shipment formalities, the C & F Agents areexpected to forward to the Exporter the following documents: 1. Customs signed Export Invoice & Packing List 2. Duplicate of Form SDF 3. Exchange control copy of the Shipping Bill, processed electronically 4. AR4 (original & duplicate) duly endorsed by Customs for having effected the Export 5. Bill of Lading or Airway bill, as the case may be.STEP 10 111
    • INDIAN LEATHER INDUSTRYBILLS NEGOTIATIONWith these authenticated shipping documents, the Exporter willhave to negotiate the relevant export bill through authorizeddealers of Reserve Bank, viz., Banks.Under the Generalized System of Preference, imports fromdeveloping countries enjoy certain duty concessions, for whichthe exporters in the developing countries are expected to furnishthe GSP Certificate of Origin to the Bankers, along with othershipping documents.Broadly, payment terms can be: • DP Terms • DA Terms • Letter of Credit, payable at sight or payable at... daysStep11BANK TO BANK DOCUMENTS FORWARDINGThe negotiating Bank will scrutinize the shipping documents andforward those to the Banker of the importer, to enable him clearthe consignment.It is expected of such authorized dealers of Reserve Bank toensure receipt of export proceeds, which factor has to beintimated to the Reserve Bank by means of periodical Returns.STEP 12CUSTOMS OBLIGATION DISCHARGEAs indicated above, Exporters are also expected to provide proofof export to the Central Excise authorities, on the basis of theCustoms endorsements made on the reverse of AR4s and gettheir obligation, on this score, discharged. 112
    • INDIAN LEATHER INDUSTRYSTEP 13RECEIPT OF BANK CERTIFICATEAuthorized dealers will issue Bank Certificates to the exporter,once the payment is received and only with the issuance of theBank Certificate, the export transaction becomes complete.It is mandatory on the part of the Exporters to negotiate theshipping documents only through authorized dealers of ReserveBank, as only through such a system Reserve Bank can ensurereceipt of export proceeds for goods shipped out of this country. 113
    • INDIAN LEATHER INDUSTRYLIST OF DOCUMENTS REQUIRED TO BE SUBMITTEDBY THE EXPORTER TO THE VARIOUS AUTHORITIES,ORGANIZATION AND AGENTS:TO THE CUSTOMS AUTHORITIES: 1. Shipping Bill 2. Commercial Invoice 3. GR.form (original & duplicate) 4. Shippers Declaration form 5. Copy of export contract / L.C / exporters order 6. Inspection certificate 7. AR4 / AR4a / AR5 form 8. Export license ( wherever necessary ) 9. Weighment certificate (wherever necessary )TO THE PORT AUTHORITIES: 10. Export Application / Dock Challan 11. Cart Ticket / Chit 12. Shipping Order 13. Port Trust of the Shipping BillTO THE BANK: 14. L/C (where required) 15. Commercial Invoice 16. Bill of Lading 17. Insurance Policy (certificate) 18. Bill of Exchange 19. GR. Form (duplicate copy) 20. Bank certificate (three copies) 21. Export inspection certificate (wherever required) 22. Certificate of origin 23. Shipment AdviceTO THE LICENSING AUTHORITIES: 114
    • INDIAN LEATHER INDUSTRY 24. Application for Exporter-Importer Code number in duplicate 25. Application in Prescribed 26. Copy of Export Order / L.C. 27. Statement of Export 28. Bank Receipt / Draft for Application Fee 29. Bond / Legal Undertaking toward Export Obligation 30. Chartered Engineers CertificateTO THE EXPORT PROMOTION COUNCIL: 31. Application for Registration form cum member certificate 32. Bank Certificate regarding financial SoundnessTO THE MARITIME COLLECTOR OF CENTRAL EXCISE: 33. Application in form ‘C’ 34. Duplicate copy of AR-4 form 35. Non negotiable copy the B/L or the shipment certificateTO THE EXPORT INSPECTION COUNCIL 36. Application in the prescribed form 37. Copy of Letter of Credit 38. Copy of export contract 39. Commercial Invoice 40. Bank passbook showing credit in favour of EIA to the ext. of Inspection fee or bank draft/crossed cheque for feeTO RBI: For Remittance of foreign exchange for the payment of claims 41. Application form 42. Copy of Invoice 43. Sales contract 44. Bill of lading 45. Inspection / analysis report 115
    • INDIAN LEATHER INDUSTRYTO EXPORT – IMPORT BANK:For direct financial assistance to Exporters. 46. Export contract 47. Letter of credit or letter of Guarantee from Importer 48. Balance sheet of Exporter 49. Statement of Profit and Loss A/C. in the transaction covered by the contract. 50. Statement regarding the projection of the credit requirementTO THE BANK (FOR PACKING CREDIT) 51. Proforma invoice 52. Original RR endorsed to the Bank 53. Copy of Dispatch advice 54. Copy of Order or L/C. 55. Application formFOR MEDIUM CREDIT 56. Export contract 57. L/C or Guarantee form Importer 58. Statement giving reasons why exports are made on deferred payment arrangement.TO THE E.C.G.C.For Export Risk Insurance 59. Proposal form 60. Bank Certificate about financial position 61. Application form for fixing the credit limit. Document required by importing countries. 62. Consular Invoice (mainly required by Latin America, Middle Eastern countries) 63. Certificate of value 64. Combined certificate of origin and value (mainly required by Common wealth countries) 65. Customs invoice (for U.S.) 116
    • INDIAN LEATHER INDUSTRY 66. Health certificate for exports of foods product, seeds, vegetable, fish, etc. 67. Certificate of origin 68. Generalize system of preference certificate of origin.CHAPTER SEVENFINANCINGThe government of India has introduced several schemes tofinance the various needs of Indian exporters. Basically, thefinance available to Indian exporters can be classified into twobroad categories as follows:I) PRE- SHIPMENT FINANCEII) POST- SHIPMENT FINANCE PRE- SHIPMENT FINANCE:Pre shipment finance or packing credit are also known as short-term credit refers to any loan to an exporter for financing thepurchases, processing, manufacturing of packing of goods asdefined by RBI as its name suggest it covers credit extended bybanks prior to the shipment of goods, in effect, a packing creditsis a loan against exportable stocks. It is a shot term creditbecause it is granted for the short period of time say about 6months as against medium and long term credit extended for 117
    • INDIAN LEATHER INDUSTRYperiod beyond 6 months, except where the period is extendedotherwise.PRE-SHIPMENT FINANCE IN INDIA, CLASSIFIED INTOTHREE CATEGORIES, NAMELY: Packing Credit – Clean or secured. Advance against incentives receivable from the Government. Advance against Duty Drawback.Packing credit can also be put into following four categories,depending upon the nature of production and procurementsystem concerning the export commodity.  Extended packing credit loan.  Packing credit loan (hypothecation)  Packing credit loan (pledge)  Secured shipping loan.PACKING CREDIT TO INDIAN EXPORTERS 1. ELIGIBILITY Packing credit is available to all exporters whether merchant-exporters, export/trading/star trading houses and manufacturer-exporters. Even manufacturers of goods supplying to export/trading/star trading houses and the merchant exporters are eligible for this credit provided- They produce a letter from the concerned merchant exporter/export/trading/star trading house that a portion of the order has been allotted to them detailing the goods to be supplied. The merchant exporter/export/trading/star trading house neither has availed not wish to seek packing credit in respect of the appropriate order, from any other bank/source. 118
    • INDIAN LEATHER INDUSTRY The letter from the merchant exporter of export/trading of star trading house is countersigned by the bank advising the letter of credit. 2. PURPOSE/PRODUCT COVERED Packing credit advance is generally available to eligible exporters/manufacturers for the purpose of manufacturing or purchasing or transporting or processing of warehousing of packing and shipping of goods meant for export of goods. It is available to all exporter/product groups subject to stipulated conditions hence the RBIs interest rate structure is uniformly applicable to export of all the commodities made by all exporters. No advance at concessive rate of interests is allowed against products, which will not be eventually exported. 3. APPLICATION FOR PACKING CREDIT: For obtaining packing credit, a formal application giving details of credit, a requirement is to be made to the bank. While some banks have evolved forms for the purpose, others either accept the application on general loan forms or on plain paper. 4. DOCUMENT REQUIRED: Following documents are to be submitted along with the application from for packing credit. Confirmed export order/contract of I/c etc in original. Undertaking that advance will be utilized for specific purpose of procuring/manufacturing/shipping etc of the goods meant for export only stated in the related confirmed export order or the I/c. 119
    • INDIAN LEATHER INDUSTRY Joint and several demands promote signed on the behalf of firm as well as the partner individually. Letter of continuity (signed on the behalf of firm and partner individually). Letter of pledge to secured demand cash against goods (in case of pledge) or agreement of hypothecation to secure demand cash credit (in case of hypothecation). Letter of authority to operate the account. Agreement to utilize the money drawn in term of contract. Letter of hypothecation of bills. Partnership deed in case of partnership firm or memorandum of association, Article on association, Certificate of Incorporation and commitment of business for public/private limited companies with certify copy of board resolutions. Audited/final financial statements for the pat 3/5 years. Copy of income tax/wealth tax assessment order for the past 2/3 years in the case of sole proprietary and partnership firm. Copy of RBIs code no (CNX). Copy of a valid RCMC (Registration cum Membership Certificate) held by the exporter. Appropriate policy/guarantee of ECGC. Any other document required by the bank. II) POST –SHIPMENT FINANCE:Post shipment credit/finance means any loan or any other creditprovided by any institution to an exporter of goods from India,from the date of extending the credit after shipment of goods tothe date of realization exports proceeds, and includes any loan oradvance granted to an exporter, on consideration of or on thesecurity of any drawback or any cash receivable by way ofincentives from the government.CATEGORIES:1. Negotiations/payments/acceptance of export documents underletter of credit,2. Purchase /discount of export documents under confirmedorders/exports contracts, 120
    • INDIAN LEATHER INDUSTRY3. Advances against bills sent on collection basis.4. Advances against exports on consignment basis.5. Advances against un draw balances.6. Advances against duty drawback entitlement.7. Advances against retention money.8. Finance exports under deferred payment agreements, turnkeyprojects, and construction contract, etc. PROCEDUREFor availing post-shipment finance facilities, followingprocedure is to be followed.1. Enclose the documents with covering letter (signed by theauthorized signatory) indicating the type of facility required i.e.negotiation, purchase or discount etc. the proceeds to be creditedto current/packing credit account any forward rate to be used fortransactions, instructions regarding collection charges fromdrawees, documents to be released against payment/acceptance,etc. 121
    • INDIAN LEATHER INDUSTRY2. Document should be correctly drawn and authenticated.3. Obtain a seller’s contingency policy in case of C&F/F.O.B.contracts.CHAPTER EIGHTFUTURE PROSPECTS OF INDIANLEATHER INDUSTRY 122
    • INDIAN LEATHER INDUSTRYLEATHER INDUSTRY TARGETS $7 BILLIONEXPORTS BY 2011:Exports from Indias leather sector are likely to reach $7 billion by2010-11, according to Union Commerce & Industry Minister KamalNath. This is up from $2.7 billion, the current export earningsfrom the leather sector with an annualized growth of around 8percent.The Indian leather industry has set $7 billion export target by2011. It is eager to forge tie-ups’ with various Italian leathergoods designers to achieve the target, Tapan Nandy, president ofthe Indian Leather Product Association.  An Italian delegation, which had visited Kolkata recently, showed interest in Indias leather industry.  Italys Arpel Group, an international school for shoes & leather accessories designing, is currently looking for partners in India.  Retail major Wal-Mart is also eyeing the Indian leather sector.  The International Leather Goods Fair, which is being organized by the India Trade Promotion Organization, the Council for Leather Exports and the Indian Leather Products Association, will have business visitors from the US, West Europe, Canada and Latin America. More than 68 companies from India and one each from Italy and China would take part. 123
    • INDIAN LEATHER INDUSTRY  At present, eastern Indias share in the export basket is 15%, which can go up to 25% if projects like the Calcutta Leather Complex at Bantala and the recently proposed Dhantala Leather Complex start operation within 2008, Nandi said. The region is likely to export leather goods worth $ 0.33 billion in 2006-07.INTEGRATED LEATHER DEVELOPMENT:An Integrated Leather Development Program is beingimplemented with the central allocation of Rs.400 crore, focusingon modernization of manufacturing facilities in all segments ofthe leather sector. The program could be extended during the11th Plan period (2007-2012). 124
    • INDIAN LEATHER INDUSTRYLEATHER SECTOR IMPACT-INTERIMBUDGET 2009-10The Leather Export Sector is extremely disappointed that theInterim Budget 2009-10 offers very little for the leather orexporting sectors. The single supportive measure announced isthat of extension of 2% interest subvention for pre and postshipment rupee export credit, from the prevailing validity ofMarch 31, 2009 to September 30 2009.The recently released Index of Industrial Production indicatingIndian industry had grown year–on-year by minus 2% inDecember 2008, had highlighted the leather sector as being oneof the industries that registered the largest production declines at-11.4%Indeed, for some time now, tanneries in Kanpur, Kolkata andChennai have been running at near-idle levels indicating that thesupply chain is drying-up and no orders are being placed byproduct manufacturers for raw material. The latter are operatingat well below - up to 50% - of their normal levels, for there hasbeen a spree of cancellations and reduction of orders by overseasbuyers. As per current feedback, new orders are being bookedonly to the extent of 30% of last year’s level. There is a seriousapprehension that exports will fall significantly in the comingmonths, thereby causing severe problems in production andemployment. We anticipate that there could be a loss of severalthousand jobs in the next 3 months.Our slowdown is to be contrasted with the aggressive booking ofadditional orders by Chinese manufacturers, who in thebackground of supportive intervention measures are able to giveprice reductions in the range of 15-20%; as informed by ourbuyers.In this background the Council for Leather Exports hadrepresented to the Government for immediate measures in theform of revision of Drawback rates to pre-revised level of 2007- 125
    • INDIAN LEATHER INDUSTRY08, Enhancement in the Duty free Import limit for manufacturer-exporters from the existing 3 to 5% of FOB Export Turnover ;Increased weightage for leather products from 1.25% to 2.5%under the Focus Product Scheme, extension of the Focus MarketScheme to EU & USA as these 2 markets account for 75% ofIndian leather sector exports, and Service Tax Exemption for 19notified services & permitting of Service Tax exemption onoverseas agent’s commission at actual instead of at a percentageof FOB Value.The leather sector is a volume employment provider, particularlyin rural /semi urban areas and a significant foreign exchangegenerator for the economy – it is our plea that the above requeststowards reviving export prospects and business be expeditiouslyaddressed, so that the industry and its workers are helped out ofthis precarious situation 126
    • INDIAN LEATHER INDUSTRYCONCLUSION• India’s export of leather & leather products during the first seven months of the current financial year 2008-09 i.e. April- October 2008 touched US$ 2250.79 million recording a growth of 11.17% and in rupee terms the growth percentage is 19.05%.• Footwear alone holds a major share of 41.16% in India’s total leather products export trade.• The Export target fixed for the year 2008-09 is US$ 4000 million and the export achievement for the first seven months ie. (April-October 2008) is 56.27%. 127
    • INDIAN LEATHER INDUSTRYWEAKNESS OF INDIAN LEATHERINDUSTRYLEATHER INDUSTRY NEEDS TO EXPLORE NEW POTENTIALMARKETSUNITED NEWS OF INDIANew Delhi, Oct 8: Indian Leather industry needs to broad base itsexports to new frontiers, besides reorienting and restructuring itsplan for growth to face the increasing competition from otherAsian countries like China, Indonesia, Thailand and Vietnam.  The Rs 20,000 crore-leather industry which exports products worth Rs 7,000 crore showed a positive growth of 10.8 per cent in dollar terms during 1998-99 but constitutes only seven per cent in the countrys export basket.  According to an Assocham paper on the status of the Indian leather industry, exports on footwear and leather goods have grown at a faster rate than leather garments. 128
    • INDIAN LEATHER INDUSTRY The exports of finished leather remained more or less stagnant at around $ 300 million, while footwear have increased their value from $ 200 million in 1993-94 to around $ 281 million, garments from $ 350 million to about $ 425 million and leather goods from $ 230 million to around $ 350 million, it said. The Indian leather industry has attained merited recognition in the international market with the export of finished leather, leather footwear, footwear components, leather garments, leather goods and saddlery and harness. The present trends indicate that the domestic demand for the leather footwear has picked up significantly and is of the order of 200 million pairs per annum. The price in India is higher than the export price, so the government and the industry will have to take cognizance of this aspect. At this juncture, with the complex problems on the export front like ban on the use of pentachlorophenol as preservative and the use of arylamine group of dyes along with increasing local demand at more lucrative prices, the leather industry has to reorient and restructure its plan for growth, the paper said. 129
    • INDIAN LEATHER INDUSTRY The annual availability of 166 million pieces of the hides and skins is the main strength of the industry which is expected to be 218 million pieces in 2000. India has a large raw material base with a population of 194 million cattle, 70 million buffaloes and 95 million goats and it ranks first among the major livestock holding countries in the world. With 48 million of sheep, it claims the sixth position. With the tanning and the finishing capacity for processing 192 million pieces of hides and skins per annum spread over different parts of the country mostly on modern lines, the capability of India to sustain a much larger industry with her raw material resource is evident. The Assocham paper indicated that direct and indirect employment of the industry is around two million. The skilled and semi-skilled workers constitute nearly 50 per cent of the total work force. Apart from a significant foreign exchange earner, leather industry has a vast potential for employment generation among weaker sections of the society and women is immense. With the proposed support to the unorganized/artisan sector by government of India and National Leather Development 130
    • INDIAN LEATHER INDUSTRY Programme (NLDP), along with the leather technology mission (LTM), productivity levels of artisans and small scale sector could change dramatically as, need of the hour, the quality of product. Nearly 70 per cent of Indias export of leather and leather products are to the European countries, besides this the industry continue to hold Germany, USA, UK, Italy and France as its major markets. Exports to Germany alone account for 22.2 per cent followed by the US 15.6 per cent, the UK 14 per cent and Italy 12 per cent. NLDP, with the assistance from UNDP and the Government of India, was launched in 1992 for the integrated development of the leather industry in areas of education and technical training, research and development in effluent control, export expansion and coordination through select institutions in the country. The programme also upgraded the training system for design and manufacture of footwear, garments and leather products. 131
    • INDIAN LEATHER INDUSTRY As part of brand promotion under the market development assistance programme, soft loans have been proposed for brand promotion of leather products. The status paper suggested that the tanneries need to adopt and change to industry-friendly chemicals in leather processing units so that they have a ready acceptance abroad. The leather industry is much concerned over the duty drawback rates and recommended that separate rates for products manufactures using duty free finished leather be fixed. Tanners have also recommended `free-export policy for all types of leather to increase their global reach. The paper suggested that the ban on import of second-hand capital goods should be revoked as it would limit the modernization of tanneries, especially in small scale sector which cannot bear the high cost of new machinery and also recommended the introduction of foreign investment into this sector. A case study on the footwear industry indicated that though the market size has been increase, the value of domestic consumption has been nearly stagnant. Though exports 132
    • INDIAN LEATHER INDUSTRY have increased, effort should be made to expand the domestic market too. According to industry experts, with the increase in middle class population, the consumption patterns are likely to change radically with brand names, including the foreign ones, crowding in the market. So, there is huge potential to expand the domestic market. As of today India has less than one per cent share of world trade. According to provisional figures available from DGCIS, value of exports of the leather footwear has shown an increase but for footwear components it has declined. For leather products, the value of exports has increased from Rs 102 crore in April 1999 to Rs 126 crore in April 2000. But for the leather components, the decline remained marginal from Rs 84 crore in April 1999 to Rs 82 crore in April 2000. In terms of export by the country, the US tops the list with imports worth Rs 35 crore in 1999 followed by the UK with Rs 28 crore and Germany with Rs 11 crore of imports. In 133
    • INDIAN LEATHER INDUSTRY footwear components, Germany tops the list with Rs 18 crore worth of imports.  The footwear industry needs to explore new potential markets like Brazil, Argentina, Chile, Peru and Colombia as these countries could also be used as source for quality hides and wet blues. Higher quality standards and adherence to eco-regulations are required to be maintained to ward off the threat of increasing competition from neighboring countries.OTHER WEAKNESSES:  No quality specifications, poor quality accessories  Competition from low price markets like Pakistan, Ethiopia, Indonesia and Kenya.  Did not project position of products, positioning is wrong not match to Italian target is just to match Pakistan.  No brand name.  Unorganized sectors.  So many scams, corruption in government.  No research & development. 134
    • INDIAN LEATHER INDUSTRYREMEDIAL MEASURES  There is a need to modernize the processing technology through which is possible to improve the quality of the leather this technological up gradation can minimize the problem of pollution.  The shortage of raw material should be overcome somehow in order to sustain the growth in experts. In this context the treatments of splits become very important. Proper and fuller utilization of splits will have to be restored to, thereby attaining a higher recovery from the same quantum of raw material.  The unutilized manufacturing capacity of the unit needs to be harnessed in the best possible manner so that the total cost of production can be brought down.  As far as financial problems are concerned; the bands and the financial institutions should come forward by providing liberal financial assistance.  Specific areas of tariff Reduction in the import duty on chemical and machinery which go directly in the production of exports.  Provision of export finance as well as term loans at lower rate of interest or even without interest.  It is necessary to change the export profile to fall with the global import profile in order to derive the maximum benefit from the available raw material, skill and traditional industry. 135
    • INDIAN LEATHER INDUSTRY In order to encourage domestic value addition to retain a larger share of the product price within the country. It is necessary to make available quality furnished leather to the manufacturers or expo0rters of value-added products, and export of semi-tanned leather export may be brought under quota system. The proposal to use the world bands export-marketing fund for this sector, and set up proper efficient treatment plants must be pressed. 136
    • INDIAN LEATHER INDUSTRYIMPACT OF CURRENT RECESSIONON LEATHER INDUSTRYAs the Europe and the United States market is worsening, the 2.5million people in leather export industry in India will be laid off500 thousand people. The 500 thousand people have to face withthe unemployment.Since the beginning of September, the production of exports ofleather industry has started to decline, in November the leatherand leather products exports fell by 15%, whereas in December itdropped by 20%. Since September, there have been 350thousand to 500 thousand people being unemployed, and another500 thousand people are facing unemployment.IMPACT OF GLOBAL SLOWDOWN ON LEATHEREXPORTS AND REMEDIESAN ARTICLE PUBLISHED ON FEB 2ND, 2009PROBLEM BEHIND LEATHER EXPORT INDUSTRIES:Indian Leather industry is moving towards an unprecedentedcrisis with the slowdown of global economy. With the economiesof US, Europe and Japan plummeting together, India has alsowitnessed fall in GDP growth from around 9% last financial yearto 7% in the current financial year. It is projected to dip evenfurther to around 5.5 % - 6% for Year 2009 - 10.The leather exports sector which witnessed a growth 20% inthe first half of 2009 got dented by the global slowdown in the 137
    • INDIAN LEATHER INDUSTRYsubsequent months. The main reason is attributed to the declinein orders from Western markets, especially the US and UK. TheEuropean Union and the US are the two biggest markets forIndian leather export firms which stand at 65% and 25%respectively in terms of Indias export share of Leather products.Secondly Chinese Govt. is generously helping Chinese exportersto follow an aggressive exports policy which help them to bag theorders in the competition.It is a matter of big concern for our Leather Industry which ismainly dependent upon its exports rather than domestic sales.Indian exports of leather is estimated at 3.5 billion INR and itsdomestic market is hovering around 2.5 billion INR. The mainreason behind this could be that our leather industry cannot relyon its domestic market as the retail sector is still immature to sellthe export products.Leather exporters are being inextricably caught in a situationwhere buyers are delaying fresh orders besides delaying theirpayments on existing orders and on top of that they are alsoasking for huge discounts. It seems that if the problem is notaddressed on time, it would adversely affect the small scale andtiny industries and also have an impact on big businesses, leadingto job-loss and closure of units over the next few months.It is estimated that around 2-3 lakh workers can lose their jobs inleather industry which has employed around 25 lakh totalworkers. 138
    • INDIAN LEATHER INDUSTRY REMEDIES TO BOOST LEATHER EXPORT INDUSTRIESNeed of the hour is to take proactive and logical steps to tacklethe situation effectively which can only happen with the matchedefforts on the part of both Government and Industry.Mr. Habib Hussain (Chairman of leather exports council) whileaddressing the issue has suggested a three-pronged approach totackle the situation.“He emphasized on creating the required infrastructure and havelong-term plans," Providing subsidized term loans to exporters who have sufferedlosses due to slow down"Treating US and Europe in focus marketsscheme.“Innovative product designs at competitive rates.In addition to the above, some immediate measures are neededto alleviate the plight of the leather exporters. Govt. shouldincrease the drawback rates, reduce delays in export incentivereimbursement, Increase duty free import limit for manufacturingexporter on the % of export value, and increase weight age ofleather goods under focus product scheme.All these steps are necessary to retain the big global brandswhich source from India which can otherwise go to China who hascost advantage to play with. 139
    • INDIAN LEATHER INDUSTRY LEATHER INDUSTRY GLOSSARYLeather Industry Glossary - A collection of frequentlyused terms, abbreviations and jargons used in theLeather Industry with their definition and meanings.A:AgeingThe process by which certain types of leather are at some stageof manufacture allowed to lie in piles to "age".Alum TanningA process of tanning with alum, used in combination with salt,egg yolk and other substances. Used for the original feathery golfballs. "In 1845 we more than doubled that. Hard work it was. I canstill smell the leather, feel the heat. We used to use a chest clampto literally compress and push those goose down feathers into theball. Of course you cut six strips of bull hide and you soaked it inalum and of course you took three of em and stitched theminside out there, and the feathers went back in, and youcompressed and compressed, and the idea being that as theleather shrinks as it dries out and the feathers expand. Then thatgives you the compression." Quoted by Wally Uihlein, Sept 1998,at St.Andrews Golf Congress. 140
    • INDIAN LEATHER INDUSTRYAlutaRoman name for tawed (alum tanned) leather. Aluta was used forsails in Venice, and for shoe uppers in ancient Greece.Aniline LeatherLeather which retains its colour only from dyestuffs rather thanfrom pigment, and as a consequence looks more natural.B:Bag and case leatherA general term for the leathers used in travelling bags andsuitcases. It does not include the light leathers employed forwomens fancy handbags. The staple material for bag and caseleather is cowhide.Bag LeatherA form of vegetable tannage in which the skins are sewn togetherin pairs to form bags and floated in tan liquor. This method avoidsdrawn grain and gives good spread of leather.BasilBark tanned pickled sheepskins.BatingThe process prior to tanning proper where the fibres of a hide orskin which have been plumped or swollen by liming are reducedand softened, thus assuring pliability in the product. The word is aform of "abate" in the sense of reduce.BeamhouseThe area of the tannery where the unhairing and liming processesare carried out. Before modern machinery the processes offleshing, scudding and others were carried out over speciallydesigned wooden beams using curved two handled knives withsharp or blunted edge according to the operation. Hence thename. 141
    • INDIAN LEATHER INDUSTRYBelt leatherLeather used for the leather going into mens clothing belts.Belting leatherLeather employed for the transmission of power for machinery.The great bulk of this leather is made from the butts of high-grade cattle hides. In Europe a certain amount of buffalo hide isalso used.BoardingA process of finishing a side or skin by folding it with the grainside in and rubbing the surface together under pressure. Gives adistinct look, and creates "box" look when done two ways and"willow" when done only in one direction.Bougie LeatherLeather from the town of Bougie in North east Algeria. Famous inthe fifteenth century.Box Calf or box sidesCalf or side leather which has been boarded in two directions.BuffingSandpapering the leather with sandpaper or emery paper forvarious reasons such as the creation of a suede like nap onsuede, a nubuck finish on grain, or for the preparation ofcorrected grain leather. Sometimes done on the flesh side to tidyup its appearanceC:Cabretta LeatherA wrongly named hair sheep. When the Portuguese first went toBrazil they mistook the indigenous hairsheep for goats and calledthem cabrettas (kids). The skins were exported to the USA by theBlue Funnel Line (later the Booth Group) and the name cabrettastayed with them. Now all hairsheep skins have taken the genericname cabretta. Much used in footwear leather and sport gloveleather. 142
    • INDIAN LEATHER INDUSTRYCalifornia BanknotesIn "Two Years Before the Mast" Richard Henry Dana describeshow he sailed from Boston to California in 1834 to collect hides.He explains how hides are dried and loaded onto the ships beforereturning to the East Coast. Since California had nothing else ofwealth at that time the dried hides were known as "CaliforniaBanknotes". "The hides are brought down dry, or they will not bereceived. When taken from the animal they have holes cut in theends, and are staked out, and thus dried in the sun withoutshrinking. They are then doubled once, lengthwise, with the hairside usually in, and sent down upon mules or in carts, and piledabove high-water mark: and then we take them upon our heads,one at a time, or two, if they are small, and wade out with themand through them into the boat." On page 140 of the bookdetailed at the end is a fine description of the full cure processused to prepare the hides for a wait of over a year before theywould get back to Boston around the Cape for tanning. Hideswere valued in Boston at 12 and a half cents a pound dry saltedand the captain got 1% commission. Ships would spend nearly ayear collecting and accumulating hides up and down theCalifornia cost to make the journey worthwhile. On Danas shipthey brought back 40,000 hides.Carding LeatherA special type of side leather used on the cards of cottonmachinery. The leather lies flat against the beds of the cards, theteeth being forced through.Chamois leatherA soft leather originally made from the skins of the Alpineantelope known as the chamois but at the present time from thefleshers of sheepskins. Certain grades used to be used in glovesand fancy articles but the staple employment is for cleaning andpolishing, primarily automobile. Chamois is characterised by anability to absorb at least three times its own weight of water.Shoemakers, but unlike cordwainers they work with oldleather.Cobblers are essentially repairers. 143
    • INDIAN LEATHER INDUSTRYCombing leatherThe name applied to the leather used on the combing rolls ofcotton machinery and manufactured of calfskin or side leather.ConditioningWhen leather is dried after retanning, dyeing and fatliquoring thefibres tend to stick together and the leather is hard. The fibres areseparated and the leather softened by staking. Staking is bestdone at about 18% humidity and so a little humidity has to be putinto the dry leather. This is most commonly done by a waterspray and then piling the leather long enough for the moisture toeven out. Adjusting the moisture content before staking in thisway is called conditioning.CordovanThe shell of a horse hide, often tanned with a sulphur tannage.Assuch it was a soft vegetable tanned leather first made in Cordobain Spain, and followed by goat, sheep and pigskin leathers with asimilar formula.Cordovan leather has good wearingcharacteristics, and I non porous.The horse product still tends tobe called “shell cordoban leather”.Cordovan LeatherDeveloped in Spain in the 8th century, when the Moors arrived inSpain. Made from the skin of the mouflon (Ovis Musimom). Thishair sheep now only survives in Corsica and Sardinia. It wastanned with alum and later with alum (Koninklijke Bibliotheeksays sumac was not introduced until the 15 th century). Bestbrilliant scarlet type was tawed with alum and dyed with kermes.CordwainersFrom Cordovan leather. At first made many types of leatherarticles. In Middle Ages specialised in Shoes. Cordwainer is fromthe French word “cordonnier” and came to England in 1066 withthe Norman Invasion.After Cordoba fell in the 12 th centuryEnglish Crusaders brought back this alum tanned goat skin.It wasconsidered the highest quality shoe leather in Europe.Cordwainers work only with new leathers. 144
    • INDIAN LEATHER INDUSTRYCorrected GrainChrome tanned side leather which is buffed with emery paper onthe grain side to remove defects and then has a plastic resin andpigment finish built up on the leather. Used for shoe upperleather.Crupp leatherA semicircular portion of leather taken from the butt of stuffedvegetable tanned horse hide.CrustLeather dried after tanning. Since chrome leather driedimmediately after tannage will go hard, change charge andbecome difficult to rewet, this drying normally takes place after abasic retanning and fatliquoring. Leather is frequently tradedworldwide in this state, although tanners normally prefer to buywet blue or pickle which gives them more flexibility of processing.CurryingA term practically equivalent to dressing and finishing, butconfined chiefly to heavy leather (Latin corredare, to prepare ordress).D:DelimingA process preparatory to tanning proper to reduce the swollenand rigid fibres of a hide or skin after liming.Dongola Tannagea. A vegetable and alum tannage developed in Gloversville, NewYork, in the 1860s to compete with the expensive kid tannage forgloves. Used hair sheep. Dongola is a town in the Sudan, andthere is a breed of hair sheep named after it. "Dongola, strictlyspeaking, is alum, salt, and gambier only, used together in onesolution. Dongola is especially applied to glazed and dull kid. Forfull dongola the process is commenced in very weak gambierliquor, with the full proportion of alum and salt, and the gambieris gradually strengthened. Dull dongola is ironed like kid in thefinish. It is said to be sometimes glazed with a blood seasoning, 145
    • INDIAN LEATHER INDUSTRYand then dulled by a mixture of soap and oil, followed by slatingwith a smooth round -edged slicker, but it is generally sized". b.Dongola tannage.- gambier, alum, and salt make what is knownas dongola leather. There are many modifications of this process.Fine leather is made by tanning the skins first in gambier orquebracho liquor, and then giving them an alum and salt re-tannage. For 200 average skins, a mixture is prepared of 5lb. ofalum, 9lb. of salt, 24lb of flour, 10lb. of egg-yokes, or acorresponding quantity of sulphonated oil, and 8 to 10 gallons ofwater. The flour is made into paste with cold water. The alum andsalt are dissolved in part of the water, and the flour paste isslowly stirred into the solution. The oil or the egg-yoke mixed withwarm water is next added, and the whole mixture is thoroughlystirred. The tanned skins are drummed with this mixture onehour, then dried, colored and finished, thus making soft, durableleather. This mixture may also be used on untanned skins ascome from the bate or drench. They should be drummed with it,dried, kept in crust for some time, then wet-back and tanned withchrome liquor, the result being soft durable leather. Thecombination tannage of gambier, alum, and salt can also beapplied in the following manner: The bated and washed skins areplaced in gambier liquor in a paddle. From 3 to 5lb. of gambierare used for one dozen skins. After they have started to absorbthe gambier, from 8 to 16 oz. of alum and 8 oz. of salt are addedto the liquor, for each dozen skins, and the paddling is continueduntil the tannage is complete, which takes 18 to 36 hours. Theleather is then washed in warm water to remove the adheringtan, next fatliquored with acid fat-liquor, dried, wet-back, colored,dried again, and finished. After the alum and salt have beenadded it is customary to put the skins, together with the tanningliquor, into a drum and run them for a few hours or untilthoroughly tanned. Some soluble oil may also be added to theliquor and applied to the leather toward the end of the tanningprocess. Excellent leather is also made by taking the skins out ofthe gambier liquor when they are well struck through, strikingthem out and then drumming them with a paste of water, flour,alum, salt, and either egg-yoke or soluble oil, drying and thencoloring them with a basic dye and titanium-potassium oxalate.The color of the leather can be modified by adding a solution of 146
    • INDIAN LEATHER INDUSTRYfustic or other dyewood to the gambier liquor, and the entireprocess may be reversed. The skins may be first drummed withalum and salt and then tanned with gambier. Heavy skins may betanned with gambier, alum, and salt. After the leather is dry, itcan be colored with acid or basic dies: and, if not fatliquoredimmediately after tanning, drummed with acid fatliquor or with anemulsion of oil and soap, staked and finished.DrenchingA process for reducing the plumped fibres of a hide or skin. Itaccomplishes approximately the same purpose as bating andbasically in the same way - that is, through soaking in afermenting solution. Some authorities, however,, restrict the termbating to the process using ferments of manures and the termdrenching to that using damp sawdust, bran, middlings, or asolution of lactic acid or some other chemical having a similaraction.DrumsThe collective term for the rotary vessel in which many processesof tanning are now carried out.E:EcraseUsually highly polished goatskin leathers showing differences incolour tone coinciding with the natural goatskin grain.ExtractvA solution of a tanning material, normally vegetable.F:FatliquoringUsing fats and oils in appropriate mixes to lubricate and softenthe fibre structure of leather, given the leather the requiredsoftness for its eventual end use. 147
    • INDIAN LEATHER INDUSTRYFootball LeatherLeather for covering the outside of soccer balls. Originally madeof pigskin, then of cattlehide splits, and more recently of PUlaminated splits. Lately leather has been somewhat replaced byfull synthetics.FlesherThe flesh piece from a thick woolly sheep which has been splitinto two layers. Used to make chamois. The grain is made into askiver. Sometimes for cost and easy maintenance the material ispart tanned and then split. The grain is then called a pliver. Theflesh created in this latter way will not make true chamois.FrizingThe process of removing the grain of a skin by exposure to astrong lime liquor over an exceptionally long period,, sometimesas much as eight weeks. Such skins, after tanning are finished onthe fine fibres under the grain. This is the method used in themanufacture of mocha glove leather and of certain classes ofbuckskin. (11)Full grain leatherLeather whose grain has not been sandpapered or buffed to hidedefectsG:Glove LeatherA self-explanatory term which, however, covers two ratherdistinct classes: the leather going into utilitarian or work-glovesand made of a variety of hides and skins, of which the mostimportant are horsehides, cattlehide splits, calfskins and pigskins;and the leather going into dress-gloves, including those for street,riding, driving, and sports wear. the latter is tannedpredominately from sheep and lambskins; but there is aconsiderable item made of deerskin and a small one of pigskin,while an important item for the highest grades of womens finegloves is tanned in a few countries of Europe from kidskins. 148
    • INDIAN LEATHER INDUSTRYGuilds (Gilds)Western European trade associations, grew strongly in the 12thand 13th centuries to protect and promote trade groups. Datafrom the Brewers’ Company in London show that their were atleast 14 different guilds concerned with leather listed in London in1422).H:HandlersOne of the series of pits or vats in which heavy leathers aretanned with bark or vegetable extracts. They are usually workedwith stronger liquors than the suspenders, but with weakerliquors than the layers.Heavy LeathersA term distinguishing sole leather, belting leather, and harnessleather proper from other classes which are referred tocollectively as light leathers.Helvetia LeatherOil tanned hide from which not all the excess grease is removed.Hydraulic leathersA collective term sometimes used for the cattle hide leathers,chiefly rawhide and combination tannages, employed in pumpvalves, as piston packing, oils seals and so forth.I:In the hair; in the wool; in the rawA group of more or less equivalent terms used to describe stockthat has not yet undergone any of the processes of leathermanufacture.In the rough; in the crust; in the white; in the blueA group of approximately equivalent terms used to describe stockwhich has been tanned,, but not finished. In the rough or roughtanned is most commonly applied to vegetable tanned cattle hideleathers; in the crust and in the white to vegetable, alum or 149
    • INDIAN LEATHER INDUSTRYformaldehyde tanned sheepskins and lambskins; and in the blueto chrome tanned skins particularly goatskins. The use of theterm in the white needs to be distinguished from that mentionedin the following definition. See also Wet White and Wet Blue.In the white; in the pickleTwo roughly equivalent terms used to describe stock which hasundergone the processes preliminary to tanning, but has notbeen actually tanned. Historically in the pickle is restricted tosheepskins and lambskins; in the white, in this sense, is used forpractically all other classes of hides and skins.J:JapanningA process of preparing the oil for, and the process of,manufacturing patent leatherL:Larrigan LeatherAn American speciality made of light cattle hide and used in themanufacture of the heavy moccasins worn by lumbermen toguard against slipping when walking on wet logs.Latigo LeatherThe Spanish word latigo means a whiplash and this leather wasoriginally tanned for that purpose; but as a technical term in thepresent day American trade, latigo means the straps used forcinching saddles of the McClellan, cowboy and Mexican types.This leather is usually prepared from cattlehides by a combinationtannage.LayersThe last set of vats or pits in which heavy leather is tanned,containing the strongest liquor. The hides in these pits are laidflat - originally with layers of tan bark between them. 150
    • INDIAN LEATHER INDUSTRYLeatherFor the avoidance of all ambiguities and doubts, which may anddo grow upon the definition and interpretation of this wordleather, it is enacted, and declared by these presents, that thehides and skins of ox, steer, bull, cow, calf, deer, red and fallow,goats and sheep being tanned or tawed, and every salt hide is,shall be, and ever hath been reputed and taken for leather. Act ofParliament. UK year 1604. (2)Light LeatherLeather for clothing, gloving and shoe uppers mostly chrometanned.LimingA process preliminary to tanning, which serves one or both of twopurposes: (1) to loosen the hair or wool on a hide or skin,preparatory to dehairing; and (2) to plump or swell the fibres asof the processes necessary to prepare the substance for theaction of the tan liquors. Liming is always required for the latter ofthese purposes.P:PaddlesA name applied to certain types of machinery with rotating arms,which are used in various tanning operations for agitating hidesor skins in process. Use more water than drums, allowing largerfloats and consequently gentler action. Mostly used in the soakingand liming areas.PaintingA process for loosening hair or wool (usually the latter) which isemployed with skins whose protective covering is so valuable asto make it desirable to avoid injuring it by soaking in a lime liquor.The process is carried out by painting the flesh side of a skin witha depilatory substance, containing sodium sulphide or arsenic.Nowadays this is the usual method with sheepskins bearing thehigher grades of wool. Before it was invented, such skins wereusually dehaired by sweating. 151
    • INDIAN LEATHER INDUSTRYParchmentSee Pergamum.PastingA method of drying where wet leather is pasted onto a glass orsteel plate and then allowed to dry in controlled conditions - oftena tunnel with various chambers adjusted to fit the plannedremoval of moisture. Most used with side leather. Holds the areawell, but if not well retanned the leather can feel hard and empty.There is a danger of the paste damaging the grain or interferingwith the finish. US tanners are most skilled in this drying method.PeltThis word means, strictly speaking, any kind of skin (Latin pellis,related to the German felle, a skin, and the English word fell, nowpreserved only in fellmonger). The word is somewhat loosely usedin the leather industry, but its only common applicationsnowadays are to sheepskins in two or three slightly differingsenses: to the skin proper, to distinguish it from the wool thatgrows on it; to dewooled sheepskins, as a pickled pelt or afellmongered; or in some countries to a woolskin bearing theshortest recognised staple.PergamumTown near Izmir (Smyrna) in Asia Minor. Parchment (from Latin"carta Pergamena") supposedly first made there in 3rd cent BC.When the King of Pergamus was building a great library in rivalrywith the library of the King of Egypt in Alexandria, the latterplaced an embargo on the exportation of papyrus from Egypt tohamper competition. The King of Pergamus thereupon perfectedthe manufacture of parchment for the making of books.A more comprehensive discussion of this is given by theKoninklijke Bibliotheek.Since it is very interesting I quote fromtheir website: Parchment was used chiefly for writing, first on ascroll - as is still the case in Israel - and from the second centuryBC onwards in book form. To make a book, the rectangular cutsheets might be folded one or more times. The skins of sheep andgoats from the areas round the Mediterranean were rarely morethan 50 cm long by 40 cm wide. In northern regions we find larger 152
    • INDIAN LEATHER INDUSTRYskins and also calfskins being used to make books. The termpergamena is first used in the Edict of Diocletian (301 AD); untilthat time the term membrana had been used. It is generallyaccepted that the use of a new term indicates a new or modifiedproduct, but so little is known about the parchment of those daysthat it is impossible to say with any certainty whether this wasthe case here.One of our few informants about pre-Christian times is the(unreliable) Roman historian Pliny. He writes that the king ofPergamon (in present-day Turkey), Eumenes II (197-159 BC), wasforced to look for alternative writing materials when the import ofpapyrus from Egypt was suspended. This is supposed to have ledto the invention of parchment. Although parchment had beenknown at least eight hundred years before this date, Pergamondid have a reputation for good quality parchment in classicalantiquity. The great change occurred around the fourth centuryAD, when people started manufacturing parchment using limewater. Until the fourth century skins were mostly treated withsalt, flour and other vegetable products that were used to removethe hairs and to prepare the skin. The lime water method mayhave been introduced by Jews and Arabs to Spain in the earlyMiddle Ages, after which it spread throughout the rest of Europe.Jewish parchment was lightly tanned on the surface withvegetable tannins. Another technique, the splitting of skins, wasalso known to the Jews and Arabs, even before the middle Ages.In the West the traditional procedure to obtain the requiredthickness was to shave the full skin.Formulas and depictions of parchment manufacturing have comedown to us, especially from the late Middle Ages. There isconsiderable correspondencebetween these mediaeval formulasand those used by modern parchment makers, and even theprocessing and tools have not changed fundamentally. For themost part, parchment manufacture is still a matter of handwork.Picker LeatherThe picker is the mechanism on either side of a power loom thatthrows the sharp pointed shuttle and receives it again as it is 153
    • INDIAN LEATHER INDUSTRYthrown back. For arming this mechanism, long experience hasfound nothing equal to a special, very tough leather, usuallyrawhide - either cattle or buffalo. Such picker leather is madeextensively in the North of England and in parts of the USA, partlyfrom native cattle hides and partly from imported buffalo hides.PicklingA preliminary process for preparing hides and skins for tanning,largely by adjusting the pH with acid and controlling the swellingwith salt. It is also use as stable way of holding material, afterunhairing, for transport between plants and countries and fortrading.R:RetanningA process subsequent to the main tannage when the character ofthe leather is adjusted by the addition of further alternate typesof tanning material. Thus synthetic or vegetable tans may beadded to a chrome leather to adjust certain characteristics.RoansSumac tanned sheepskins.RockersA device for the continuous agitation of hides when suspended inpits or vats in order to hasten the operation of the liquors.RollingOne of the final operations in the manufacture of sole leather, bywhich it is given a smooth surface and even thickness.Russia LeatherLeather characterised by its odour. "Anglo Russias" are skinstreated with birch tar oil to imitate the smell of Russia leather.“The Russians have manufactured for a long time a variety of redleather called Juncten. This leather has an agreeable andcharacteristic odor, does not mould even in damp places, and isnot attacked by insects. 154
    • INDIAN LEATHER INDUSTRYRussia LeatherOriginally and properly calfskin shoes leather, dressed with birchoil and distinguished by its odour rather than its appearance.S:Santa Croce....... Igualada, Vic, Alcanena, Solofra, Lyon, Arzignano,Guadalajara, Kano, Northampton, Ambur, Ranipet, Vaniyambada,Millau, Kano, Graulhet, Mazamet, Gloversville Some of the placesin the world which are centres for the leather industrySamm, sammyingThe mechanical extraction of moisture from leather after aprocessing stage. Most normally done on wet blue after chrometanning, using a machine which carries the leather through felts.ScudA film or deposit of waste matter appearing on the surface ofleather in process after certain operations, esp. bating.ScuddingOne of the preliminary processes preparatory to tanning. Afterbating or drenching the excess fermenting materials, togetherwith dirt, fatty matter, hair follicles, short hairs, and glandulartissue, are worked out of the hide or skin.Mostly done by handusing a blunt two-handed knife over a curved beam. Can be doneby machine.Setting outThis mechanical process is used at various stages in the finishingof leather to counteract the shrinking and stiffening resultingform the processes that have gone before.Most common afterretanning, fatliquoring and dyeing. Normally done by machineusing a knifed cylinder with blunted blades. Some modernmachines combine sammying and setting and some incorporate aheated roller to help set the grain in a smooth tight configuration.Striking out is a similar process for heavy, vegetable tannedleather. 155
    • INDIAN LEATHER INDUSTRYShagreenFrom Turkish "saghri" and means the croup of a beast. Originallymade in Persia from hides of asses, horses and camel, probablyuntanned. Seeds of a species of Chenopodium were trampled intothe skin when it was moist and shaken out when it dried, thusleaving granular indentations. The material was then stained. Inthe 17th cent and later, shagreen was made either of finelygranulated shark skin or of the skin of a ray fish, whose pearl likepapillae were ground flat, leaving a lovely pattern.Side LeatherLarge hides are cut in half down the backbone to make themeasier to handle in the tannery. Each piece is called a side. Mostshoe leather made from cattle hides is produced as side leather,while most upholstery leather produced from hides is processedas whole hides. Increasingly the cutting of hides into sides is doneafter tanning, at the wet blue stage.Skirting leatherA specialised cattlehide leather used for the skirts or hangingportions of saddles that come between the legs of the rider and ahorses flanks.SkiversThe grain of the wool sheepskin when it has been split in order toprepare a suede leather for manufacture into chamois leather.Normally tanned with vegetable materials for use as in shoelining, bookbinding or leathergoods.SlatVegetable tanned sheepskin produced from a skin whose woolhas been removed by the sweating process. Mazamet in France isa famous source of slats.SplitsThe lower flesh side section of a hide (normally) or a skin after ithas been split. Normally made into a suede split. 156
    • INDIAN LEATHER INDUSTRYStakingMechanical softening of leather. Done by hand by pulling skinsover a moon shaped knife, but mostly by machines of which towtypes are common. The old "grab" staker with crocodile jawswhich come together at a point where the operator offers the hideor skin and pulls the leather away from him while he restrains itcarefully and the vibrating through feed machine invented inCzechoslovakia in the sixties. The former is more precise, but isalso more labour intensive and skilled, while if not used carefullywill lead to tearing and loss of area.StocksA wooden device previously used in oil tannages especially forchamois. Two wooden hammers pound the oil into the leatherprior to hanging in a hot room for the oil to oxidise. The hammersare driven by an eccentric wheel. This process is now done indrums where temperature and humidity can be carefullycontrolled.Strop LeatherThe leather from which razor strops are made. The best gradesare tanned from the shells of horse hides.SuedeThe finish produced by running the surface of leather on anemery wheel, with the result of ruffling up the fibres and giving ita "nappy" appearance. The grain of leather may be suedefinished (called nubuck) but the process is more appropriate toflesh or split surfaces. The name was applied (originally in France)to a glove leather of Swedish origin and only later to the finishthat characterised the material.SuspendersOne series of vats or pits used in tanning heavy leathers, thehides being hung so as to be exposed as freely as possible to theaction of the liquor. The suspender pits usually contain theweakest liquor, and the hides are treated in them before passingto the handlers and layers. 157
    • INDIAN LEATHER INDUSTRYSwampAn area near the Manhattan side of Brooklyn bridge just south ofthe current City Hall set aside for tanning in 1664. Remained for275 years.SweatingA process for loosening the hair or wool on a hide or skin byhanging the pieces near together in a close atmosphere, thusencouraging bacterial action. It has now become comparativelyrare, being confined to out of the way places or primitiveindustries, and to a few special trades like that centering aboutMazamet in FranceT:TawingThe old English term applied to the process of making leatherwith alum to distinguish it from tanning in a strict sense, thelatter term having been originally confined to leather making withvegetable tanning agents. The English word has now becomenearly obsolete, but in French the distinction between tannageand megissage is still strictly drawn.TackingA process of stretching leather at certain stages in themanufacture by tacking it on a frame or board. the method seemscrude and slow, but is very effective for counteracting theshrinkage which follows certain operations, without applyingexcessive strains on particular portions of a piece.TogglingA modernised method of tacking to dry leather, using toggles tohold the leather instead of nails. Originally the toggles were fixedinto holes in a perforated metal plate which was put in an oven.More modern machines find and clip the leather mechanically.V: 158
    • INDIAN LEATHER INDUSTRYVacuum DryingA method of drying leather taking advantage of the fact thatmoisture evaporates more quickly under vacuum. The wet leatheris laid out on a wet steel plate (often slicked, a form of handsetting out) and the vacuum head brought down. After retanningand fatliquoring the leather can be dried to either 30% and thenhang dried or in some circumstances fully dried direct. Dryingonly takes two to five minutes. A newer use of vacuum dryinginvolves using a rubber base instead of stainless steel. While theleather is under vacuum this rubber base expands outwards,stretching the leather out from its centre. I have seen a page ofnewspaper pulled into jigsaw-sized pieces by this machine. It isnot so good for taking out large amounts of moisture but good forthe drying after conditioning and staking of soft leathers. Avoidusing it just for area gain.VellumVellum is practically the same thing as parchment but is made ofcalfskin. The word is derived from the Latin vitulus, a calf, whenceour word veal. Drum leather is a specialised form variety ofvellum, made nowadays in diminished quantities for the purposeindicated by its name.W:Wet BlueChrome tanned leather. Chrome tanning creates a blue colour inthe leather and there is a natural safe resting stage just aftertanning when the leather is both wet and blue. A significant stagein which leather is traded semi-processed worldwide.Wet WhiteHides and skins with the hair or wool removed and preservedafter a light aluminium tannage. More stable than pickle.Increasingly used as an intermediate stage for transporting andselling hides and skins 159
    • INDIAN LEATHER INDUSTRYLEATHER PRODUCTS LEATHER CRAFTS SUPPLIESLeather FringesLeather RibbonsLeather StrapsLeather Belt BlanksLeather ThreadsLeather ButtonsLeather ToggelsLeather StringsLeather Tassels 160
    • INDIAN LEATHER INDUSTRYLeather BeadsLeather ClaspsLeather BucklesLeather ClipsLeather ClampsLeather EyeletsLeather ZippersLeather CordsLeather PipingsLeather LacesSuede Leather LacesNappa Leather LacesBuff Leather LacesCow Leather LacesGoat Leather LacesLeather Belting LacesCalf Leather LacingsLeather BraidsBraided Leather CordsBraided Leather Lacings  LEATHER MACHINERY & EQUIPMENT:Airing-Off MachinesBand Filtration PlantBoarding MachinesBuffing MachinesCarding MachinesCO2 De-Liming EquipmentCooling PlantsDegreasing PlantsDesalting EquipmentDosing EquipmentDrying MachinesDyeing MachinesFelt ProductsFinish DryersFleshing Handling Equipment 161
    • INDIAN LEATHER INDUSTRYHand ToolsHide Curing MachinesHide Siding & Stamping MachinesLeather Testing EquipmentMeasuring Machines (Wool-on)Milling MachinesPacking EquipmentPalletising & Depalletising EquipmentPigment PumpsPlating & Ironing MachinesPolishing MachinesPrinting MachinesRebalding MachinesRoll Coating MachinesRotary Filtration PlantSalt ApplicatorsSammying Setting MachinesSeasoning MachinesShaving CompactorsShaving MachinesSkiving MachinesSpiral KnivesWaste Treatment EquipmentStretching MachinesTesting MachinesTrimming MachinesWeaving EquipmentTying MachinesVacum Dryers MachinesWeighting MachinesWet Wheel MachinesWool CompactorsWool Pulling MachinesWringers MachinesAir Blast De-dusting MachinesArea Extension MachinesBand Knife SplittersBrushing MachinesBundling Machines 162
    • INDIAN LEATHER INDUSTRYChrome Recovery EquipmentColor Matching & Dosing EquipmentConditioning MachinesCurtain Coating MachinesDehairing / Unharing MachinesDust Control MachinesExtractors MachinesFilter PressesFinishing MachinesFleshing MachinesGlazing MachinesHeat Recovery MachinesHide Processing MachinesHide Washing MachinesLinked Processing LinesMilling DrumsPadding MachinesPerforating MachinesPlate Washing MachinesPlatting / Embossing MachinesPressing MachinesPutting Out MachinesRecirculation SystemsRoller MachinesRotary Shearing MachinesSammying MachinesScudding MachinesSetting Out MachinesShaving ConveyorsSiding MachinesSorting MachinesSplitting Machines (Lime / Wet Blue)Spraying MachinesStacking MachinesSwabbing MachinesTipping MachinesTrimming ToolsTurn-Key TanneryWashing Equipment 163
    • INDIAN LEATHER INDUSTRYWet Buffing MachinesWheeling MachinesWool DryersWool Removal (Sweating) Machines  LEATHER CHEMICALS:Acetic AcidAcrylic RetansAdhesivesAlkaliesAmmonium Chloride and SulfateAntioxidantsAntirock SpraysBactericidesBates and EnzymesBindersBleaching ChemicalsBorax, Boric AcidCalcium FormateCaseinCationic OilsCaustic PotashCaustic SodaChestnutChina ClayColloidal ClayDefoamersDegrasDegreasing AgentsDehairing / Unhairing AgentsDeodorizersDetergents and SoapsDisinfectantsDisodium PhosphateDispersing AgentsDry Colors and PigmentsDyeing Auxiliaries 164
    • INDIAN LEATHER INDUSTRYEgg YolkEmulsified Oils and WaxesEmulsifiersEstersFat LiquorsFillersFinish StrippersUrethane FinishesWater Resistant FinishesFinishing AgentsFlame RetardantsFormic AcidFragrancesFungicidesFurrier SuppliesHematineHydrogen PeroxideImpregnantsLeather Care ProductsLeveling AgentsLigno SulfatesMagnesium HydroxideMarine OilsNeats Foot OilsNeutralizing AgentsOborantsPenetrating AgentsPigmentsPlasticizersPlate Release WaxQuebrachoAcrylic ResinsSynthetic ResinsResin BindersResin EmulsionsSequestering AgentsSlip AgentsSoaking AssistantsSodium Bicarbonate and Carbonate 165
    • INDIAN LEATHER INDUSTRYSodium BichromateSodium BisulfateSodium BisulfiteSodium FormateSodium Hexa-Mata PhosphateSodium HydroxideSodium SulfideSodium SulphateSodium SulphydrateStain ResistantsStuffing CompoundsSulfated OilsSulphonated TallowSulphuric AcidSurfactantsSwabbing OilsSyntansTallowsTanning ExtractsWaste Control ChemicalsWaterproofing AgentsWaxesWhitening MaterialsZirconium  LEATHER RAW MATERIALS:Bovine HidesBrine Cured HidesBuffalo LeatherCabretta LeatherCalf SkinsChamoisCrust HidesDry HidesFish LeatherDeer HidesHorse LeatherKangaroo Leather 166
    • INDIAN LEATHER INDUSTRYNuBuck LeatherPickled HidesPigskinsRabbit HidesLeather Raw HidesSnake LeatherSheep LeatherSkiversSlink SkinsWet Blue HidesWet Salted Hides  LEATHER FURNITURELeather SofasLeather ChairsLeather SectionalsLeather Recliners  LEATHER ACCESSORIESLeather BagsLeather Tote BagsLeather Saddle BagsLeather Golf BagsLeather HandbagsLeather Shoulder BagsLeather Travel BagsLeather Duffle BagsLeather Book BagsLeather Bean BagsLeather Briefcase BagsLeather Leather BagsLeather Laptop BagsLeather Camera Bags 167
    • INDIAN LEATHER INDUSTRYLeather WalletsLadies Leather WalletsMens Leather WalletsLeather Passport WalletsLeather Chain WalletsLeather Travel WalletsLeather Credit Card WalletsLeather PursesLeather Backpack PursesLeather Coin PursesLeather CasesLeather Phone CasesLeather Key CasesLeather Pen CasesLeather Cigar CasesLeather Passport CasesLeather CD CaseLeather Card HoldersBusiness Card HoldersCredit Card HoldersLeather Business OrganizersLeather Key ChainsLeather Picture FramesLeather Jewelry BoxesLeather BriefcaseLeather BackpacksLeather PortfoliosLeather Portfolios  LEATHER FASHION JEWELRYLeather ChokersLeather NecklacesLeather BraceletsLeather Hair ClipsLeather Arm BandsLeather EarringsLeather Rings 168
    • INDIAN LEATHER INDUSTRY  LEATHER GARMENTS & CLOTHINGLeather ShirtsLeather JacketsLeather TrousersLeather VestsLeather CoatsLeather JeansLeather GlovesLeather ChapsLeather ShortsLeather CapsLeather BlazersLeather ThongsLeather OvercoatsLeather BeltsKids & Children’s Leather ClothingGirls Leather SkirtsGirls Leather TopsKids Leather JacketsKids Leather ShortsKids Leather TrousersKids Leather GlovesMens Leather GarmentsMens Leather ShirtsMens Leather JacketsMens Leather TrousersMens Leather VestsMens Leather CoatsMens Leather JeansMens Leather CapsMens Leather OvercoatsMens Leather GlovesMens Leather ShortsMens Leather Blazers 169
    • INDIAN LEATHER INDUSTRYMens Leather HatsMens Leather BeltsMens Leather OuterwearMens Leather InnerwearsMens Leather ThongsMens Leather ChapsWomens Leather GarmentsWomens Leather LingerieWomens Leather ShirtsWomens Leather Tank TopsWomens Leather TopsWomens Leather CoatsWomens Leather JeansWomens Leather JacketsWomens Leather SkirtsWomens Leather TrousersWomens Leather VestsWomens Leather ShortsWomens Leather PantiesWomens Leather CaprisWomens Leather ThongsWomens Leather BraWomens Leather OvercoatsWomens Leather GlovesWomens Leather PantsWomens Leather BeltsWomens Leather BlazersWomens Leather ChapsIndustrial ClothingIndustrial Leather GlovesIndustrial Leather ShoesIndustrial Leather Trousers 170
    • INDIAN LEATHER INDUSTRYLEATHER EXPORTERS IN INDIAFollowing are the names of few leather exportersin India.Anira Exports - Bombay.Antler Leather - ChennaiAress InternationalAsiatic Leather Handicraft - Calcutta.AVS International Pvt.Ltd 171
    • INDIAN LEATHER INDUSTRYCarlo - Manufacturer and exporter of quality leather goods.Chandrani Compliments & Export Private Limited.Classic Export - Calcutta.Crescent Export Syndicate - Calcutta.DCP Synthetics Pvt LtdEdcons Exports Private Limited. - Calcutta.Export CollectionFarinni Exports Pvt. Ltd. - Calcutta.Fuzz LeathersGenius Leathercraft LtdGPK Exports - CalcuttaHatigor Exports Limited.IGT Exports Ltd. - Govt. of India Recognised Export House.Jalan ExportsKabir LeathersKAG Exports - Maduri.Kamal ExportsLeathermanMahanati Exports Private Limited.MB Export InternationalMercury ExportsPacktec EnterprisesPuma Exports Private Ltd - Calcutta.Punihani InternationalTuhina Leather Industries - Bangalore.Skin Craft 172
    • INDIAN LEATHER INDUSTRYTara Exports.Etc.INDIAN LEATHER MANUFACTURERSISLAM INTERNATIONALWholesale exporter and supplier of briefcases including leather briefcases, leatherportfolio, leather executive briefcases, designer leather briefcases, leather businessportfolio and leather presentation portfolio.Address: 29 Miajaan Ostager Lane, 1st Floor, Kolkata - 700 017, India 173
    • INDIAN LEATHER INDUSTRYPhone: +(91)-(33)-22833627 Fax: +(91)-(33)-22893528Website: http://www.islam-international.com/HORE COTTAGE INDUSTRIES PVT. LTD.Wholesale suppliers of ladies leather bags, leather designer bags, leather handbags, mens leather wallet, leather wallet purses, leather shoulder bags, leatherevening bags, leather ladies purse, ladies leather wallets and leather pouches.Address: 160, Lake Town, A Block, Kolkata - 700 089, IndiaPhone: +(91)-(33)-25345447 Fax: +(91)-(33)-25345447Website: http://www.horecottage.com/MAHA LEATHERManufacturer and exporter of finished leather, raw leather like sheep leather, goatfinished leather, cow leather, buff leather, upholstery leather, printed dry millleather, soft shoe upper leather used for making seat cover, furniture, homefurnishings.Address: 1/388, Shanmuga Nagar, Pozhichalur, Chennai - 600 089, IndiaPhone: +(91)-(44)-22521688 Fax: +(91)-(44)-22521688Website: http://www.indiamart.com/mahaleather/RUDRA ENTERPRISESDeals in selling and manufacturing of leather card holder, leather business cardholder, leather credit card holder. Also deals in pvc files, leatherite punchless clipfiles, small leatherite punchless clip files, F/S punchless clip files and file folder.Address: 3645-47/10-11, Gali Lohe Wali, 3rd Floor, Chawri Bazar, New Delhi -110 006, IndiaPhone: +(91)-(11)-23947481/30518241 Fax: +(91)-(11)-23918281Website: http://www.anejaplastic.com/MEGAA INDIAN ARTSSupplier and manufacturer of various leather goods and leather accessories likeleather key rings, leather files, leather folders, portfolio planners, leather bags,crafted leather carry bags, leather portfolio bags, leather executive bags etc.Address: 9th Floor, Flat-A9, CIC Building, 33A, Chowringhee Road, Kolkata - 174
    • INDIAN LEATHER INDUSTRY700 071, IndiaPhone: +(91)-(33)-40219200/22172461 Fax: +(91)-(33)-22172713Website: http://www.megaaindianarts.com/FARIS EXPORTEngaged in manufacturing and exporting of leather equestrian products, animalleather clothing, leather saddles, leather bridles, leather headstalls, leather brestplates, leather rugs, leather riding chaps and leather brest collar.Address: M. G. 4 / 4, K. D. A. Colony, Jajmau, Kanpur - 208 010, IndiaPhone: +(91)-(99350)-29920Website: http://www.indiamart.com/farisexport/bridle.htmlNEW ERA OVERSEAS, NEW DELHIProducing and exporting handmade paper gifts such as slip pad, greeting card,letter writing set, pen stands, printed and dry flower greeting card, gift box,hanging lamp shade, photo frames, wine carry bags.Address: C-49, Vivek Vihar, Phase-I, Delhi - 110 095, IndiaPhone: +(91)-(11)-22168326/22158326 Fax: +(91)-(11)-43061308Website: http://www.neweraoverseas.com/KUDOS EXPORTSDeals in manufacturing and exporting of pet use products that includes dog collar,dog blanket, saddle bag, synthetic saddles, hoof boots and western bridle. Alsosupplies breeches, leather jackets and horse rugs.Address: 283 C, Shyam Nagar, Kanpur - 208 013, IndiaPhone: +(91)-(512)-3200522/2423611 Fax: +(91)-(512)-2423611Website: http://www.indiamart.com/kudosexports/IMAGES INTERNATIONALProducers and suppliers of leather goods and accessories like designer leatherbelts, fancy leather photo frames, designer leather folders, fashion leather glasscases, decorative leather pen holders, leather file folder and other leatheraccessories. 175
    • INDIAN LEATHER INDUSTRYAddress: 43-A, L. G. F., Amrit Nagar, South Extension, Part-1, New Delhi - 110003, IndiaPhone: +(91)-(11)-24656111/24644040 Fax: +(91)-(11)-24644040/24602039Website: http://www.imagintl.com/AA TO ZZ BUYING SERVICESSuppliers of leather goods such as leather garments, quality leather goods, designerleather goods, fashion leather goods, leather handicrafts and leather apparels.Address: B-291, Okhla Industrial Area Phase -1, New Delhi - 110 022, IndiaPhone: +(91)-(11)-26811347 Fax: +(91)-(11)-26811345Website: http://www.indiamart.com/indiabuyingservices/P.S. DAIMA AND SONSIndian manufacturer, supplier and exporter of a wide range of leather lacesincluding round leather lacing, split suede leather lacing, buff leather lacing,braided bolo leather lacing, calf craft leather lacing etc.Address: RZ-156, Sayed Nangloi, New Delhi - 110 087, IndiaPhone: +(91)-(11)-25252690/25266744/25254281Website: http://www.psdaimaandsons.com/laces.htmlNEW ERA OVERSEAS, DELHIEngaged in supplying of leather products like embossed leather journals, leatherphoto frames, stitched leather journals, leather sleeves, leather writing journals,blank leather journals, refillable leather journals and suede leather journals.Address: C-49, Vivek Vihar, Phase - I, Delhi - 110 095, IndiaPhone: +(91)-(11)-22168326/22158326 Fax: +(91)-(11)-43061308Website: http://www.leatherjournals-accessories.com/DAFFODILS OVERSEASManufacturers and exporter of leather bags, leather wallets, leather handbags,leather purses, leather coin pouches, ladies leather wallets, gents leather wallets,leather designer bags, ladies leather purses, leather wallet and leather executivebags.Address: 40/1404, Jayhind Subhash Nagar, Chembur, Mumbai - 400 074, India 176
    • INDIAN LEATHER INDUSTRYPhone: +(91)-(22)-65217315Website: http://www.indiamart.com/daffodilsoverseas/SUDESH ART & CRAFTS PVT. LTD.Manufacturer and supplier of various leather bags like designer leather bags,decorative leather bags, colorful leather bags, designer ladies bags, jewelerypouches, embroidered pouches etc.Address: E-36 / 202, Jawahar Park, Laxmi Nagar, Vikas Marg, Delhi - 110 092,IndiaPhone: +(91)-(11)-43043577 Fax: +(91)-(11)-43043577/22824244Website: http://www.sudesh-artncrafts.com/THINK FASHION, DELHIEngaged in manufacturing and exporting variety of leather bags includingembroidered leather bag, fashion leather bags, designer leather bag, soft sheepleather bag, tanned leather bag along with leather belts and leather purses.Address: B- 2548, IInd Floor, Dsidc, Narela, New Delhi - 110 040, IndiaPhone: +(91)-(11)-27783246 Fax: +(91)-(11)-27783246Website: http://www.thinkfashionin.com/leather-bags.htmlBALAJI INDUSTRIES, MAHARASHTRAManufacturers and exporters of leather bags, leather ladies purses, leather purses,portfolio bags, office bags, camera bags, hand bags, shoulder bags, travel bags,laptop bags, leather hand purses, leather camera cases and office cum laptop bags.Address: Gala No. -103, Everest Tiles Compound,18 Indl Area, Piparia, Silvassa,Daman - 400017, IndiaPhone: +(91)-(22)-24012390 Fax: +(91)-(22)-24012390Website: http://www.balajimaniks.com/POPPYS INTERNATIONALManufacturer and exporter of leather goods, leather fashion accessories, ladiesbags, leather shoulder bags, travelling bags, leather wallets, leather portfolios,leather belts, leather business organizers, leather key rings and fashion key chains.Address: 87/111, Bhannana Purwa, Kalpi Road, Kanpur - 208 003, India 177
    • INDIAN LEATHER INDUSTRYPhone: +(91)-(512)-3016092,3016093 Fax: +(91)-(512)-2691160Website: http://www.indiamart.com/poppysinternational/DHARANI EXPORT-IMPORT SERVICES (P) LTD.Exports and supplies an extensive range of leather chemicals such as nitrocellulose, acpol grounds, aksol binders, ambilac cems and ambilac clears. Alsooffering food colours, allura red food colours, black PN food colours and foodflavours.Address: 20/1, VVD Road, Tuticorin - 628 003, IndiaPhone: +(91)-(461)-2330856/4000900 Fax: +(91)-(461)-2325551Website: http://www.indiamart.com/dharani-exim/EMMAR INTERNATIONALManufacturer and supplier of leather gift sets such as wallets gift sets, business giftsets, corporate leather gift sets, promotional gift sets, occasional gift sets,handcrafted gift sets, designer gift sets and decorative gift sets.Address: 613, Raheja Centre, 214, Nariman Point, Mumbai - 400 021, IndiaPhone: +(91)-(22)-22831577/22834562/22831672 Fax: +(91)-(22)-22872242Website: http://www.emmarinternational.com/leather-bags.htmlGIFTS AND PROMOS WORLD WIDEManufacturer and exporter of corporate gift items, corporate leather gifts, leatherkey chains, promotional pens, leather bags, carry bags, desktop utility items,promotional caps, promotional t-shirts, promotional mugs, promotional umbrellaand awards.Address: No. 18/19, Eden Gardens, S. T. Road, Deonar, Mumbai - 400 088, IndiaPhone: +(91)-(22)-25565422 Fax: +(91)-(22)-25586161Website: http://www.giftspromos.com/NALSONS (INDIA)Manufacturers and suppliers of leather bags including suede leather bags, nappaleather bags, buffalo leather bags, cow leather bags, calf leather bags, designerleather bags, leather hand bags, leather shoulder bags and ladies leather bags.Address: B-77 Old Jasola Village, Behind Apollo Hospital, Mathura Road, New 178
    • INDIAN LEATHER INDUSTRYDelhi - 110 025, IndiaPhone: +(91)-(11)-65434794 Fax: +(91)-(11)-29943726Website: http://www.nalsons.com/ASIAN ADORESManufacturing leather diaries covers, leather journal covers, leather book covers,leather notebook covers, leather agenda covers, leather passport cases, documentholders, leather portfoilos, leather planners, leather organizers and folders.Address: 105, Madhu Industrial Estate, Mogra Village Road, Andheri (East),Mumbai - 400 069, IndiaPhone: +(91)-(22)-28348890/28350577/28218292 Fax: +(91)-(22)-28350577Website: http://www.adoragifts.com/agenda-covers.htmlJUST HIDESEngaged in manufacturing of leather organizers, leather schedulers, leather keyholders, leather bags, fancy leather handbags, leather wallets, leather key chains,folders, hip pouches, belt pouches, pencil pouches, key pouches and toilet pouches.Address: 17, P.K Rangaswamy Street, Thiruvalluvar Nagar, Vellore - 632 001,IndiaPhone: +(91)-(416)-4203828 Fax: +(91)-(416)-4205828Website: http://www.indiamart.com/justhides/GUTS AND GLORY LEATHERSManufacturing and exporting all types of leather equestrian goods such as leathersaddlery, leather harness, leather horse rugs, leather horse bridles and leather horsehalters. Also deals in winter rugs, nylon fabric rugs and woolen blanket rugs.Address: 102/88, Wajidpur Jajmau, Kanpur - 208 010, IndiaPhone: +(91)-(512)-3268264 Fax: +(91)-(512)-2464261Website: http://www.bridlenhalter.com/JAGDHAN INTERNATIONALManufacturers and exporters of promotional leather gift items like leather belts,pencil case, cosmetic case, cushion covers, dairy cover, womens bags, clutchpurses, wallets and card holders. 179
    • INDIAN LEATHER INDUSTRYAddress: 248/3/B, G.T. Road (N), Liluah, Howrah - 711 204, IndiaPhone: +(91)-(33)-26557672/26554052 Fax: +(91)-(33)-26551821Website: http://www.jagdhan.com/ABHISHEK IMPEX, MUMBAISpecializes in manufacturing and exporting leather chemicals, industrial leatherchemicals and organic leather chemicals like as monochloroacetic acid,chloroethanoic acid, chloroacetic acid, chloracetic acid and other chemicals forindustrial use.Address: 202/A2-1, Veer Hanuman Nagar, LM Road, Dahisar(W), Mumbai - 400068, IndiaPhone: +(91)-(22)-28933984 Fax: +(91)-(22)-28912615Website: http://www.abhishek-impex.com/monochloroacetic-acid.htmlBAG MAKERExporters and manufacturers of mens leather wallets and purses available sheetnappa and suede leather in different colours like black, brown and tan. Alsosupplying womens nylon bags, womens beach bags, womens tote bags.Address: Plot No. 522 , 523, Sector - 37, Pace City - II, Gurgaon - 122 004, IndiaPhone: +(91)-(124)-4228000 Fax: +(91)-(124)-4228005Website: http://www.bagmakerindia.com/mens-leather-wallets.htmlRADIANT CHEMICALS, MUMBAIManufacturer and exporter of adhesives & chemical like water soluble colorant,water insoluble colorant, electrical chemical, leather industry chemical, oilfieldchemical, oilfield corrosion inhibitor, paper & plastic industry chemical.Address: 155 / 57, Samuel Street, Hingkee Bldg, 3rd Floor, Off. No. 304 & 305,Mumbai - 400 009, IndiaPhone: +(91)-(22)-66311933/23471934 Fax: +(91)-(22)-23471934Website: http://www.radiantchemicals.com/SAHYOG EXPORTS PVT. LTD.Suppliers and exporters of ladies footwear, gents footwear, leather footwear, ladiesleather slippers, gents leather footwear, gents leather slippers, fancy leather 180
    • INDIAN LEATHER INDUSTRYslippers, ladies leather wedges, ladies chappals and ladies beaded slippers.Address: 9 & 29, Makharia Indl. Complex, Plot No- 27, Mahakali Caves Road,Andheri (East), Mumbai - 400 093, IndiaPhone: +(91)-(22)-26873628/26873835/66921785 Fax: +(91)-(22)-26874596Website: http://www.indiamart.com/sahyogexports/leather-designer-footwear.htmlSHIVAM NARROW FABRICSManufacturers, suppliers and exporters of leather cords, leather drawcords, leatherbelts, leather tapes, leather laces, leather threads, leather strings and various typesof woven customised tapes.Address: 34- Q, Laxmi Industrial Estate, Link Road, Andheri (W), Bombay - 400053, IndiaPhone: +(91)-(22)-26335010/66922244/40670670/40107411-12-13-14-15 Fax:+(91)-(22)-66922244Website: http://www.snfexports.com/RAMA KRISHNA GOYAL SHOP - MEngaged in manufacturing and supplying of leather goods such as leather album,leather files, leather folders, embossed leather folders, plain leather diary,handmade leather photo album, leather wrist bands, karol leather folders, leatherwallets, etc.Address: 59, Koliwara, Udaipur - 313 001, IndiaPhone: +(91)-(294)-2417089/2528382 Fax: +(91)-(294)-5101520/2417089Website: http://www.handmadepaperproduct.com/MADHAV INTERNATIONALManufacturing and exporting designer footwear like ladies hand embroidered partyslippers, embroidered leather slippers and leather hand painted ladies slippers.Also offers embroidered hand bags and beaded bags for ladies.Address: R. Z.-54, Chandan Colony, Village Saidulajab, Ignou/ Neb Sarai Road, P.O. Mehrauli, New Delhi - 110 030, IndiaPhone: +(91)-(11)-65145300/29532456 Fax: +(91)-(11)-29536456Website: http://www.madhavfashions.com/leather-accessories.html 181
    • INDIAN LEATHER INDUSTRYLEATHER CHOICE, CHENNAILeading supplier of leather handbags, fancy handbags, fashion handbags, ladieshandbags, ladies fancy handbags, leather travel bags, designer leather travel bagsalong with fashion leather jacket, designer leather jacket and men leather jacket.Address: 1, Muthu Street 1st Floor, Periamet, Chennai - 600 003, IndiaPhone: +(91)-(44)-25612959 Fax: +(91)-(44)-25615565Website: http://www.indiamart.com/leatherchoice/TRANSWORLD TRADING INC.Manufacturers and wholesale suppliers of handcrafted ladies footwear, mensleather footwear, ethnic footwear, v shape light weight footwear and eva solesynthetic upper footwear.Address: 2994/2A, Street No. 17, Ranjit Nagar, New Delhi - 110 008, IndiaPhone: +(91)-(11)-65480516 Fax: +(91)-(11)-25703954Website: http://www.indian-handicrafts-manufacturers.com/ladies-mens-footwear.htmlAQSA INTERNATIONALManufacturer and exporter of finished leather like sheep skin leather, finishedsheep leather, processed sheep leather, sheep nappa leather, brown nappa leather,black nappa leather, nubuck sheep leather and sheep cabretta leather.Address: 1105/D, PJ Nehru Road, Vaniyambadi - 635 751, IndiaPhone: +(91)-(4174)-228501 Fax: +(91)-(4174)-226311Website: http://www.indiamart.com/aqsainternational/UNITED EXIM KANPURManufacturer and exporter of leather belts, beaded leather belts, embossed leatherbelts, designer leather belts, woven leather belts, metallic buckle belts, brassbuckle belts, double punch belts, vintage stud belts, fashion leather belts.Address: 14/106, Civil Lines Kanpur, Kanpur - 208001, IndiaPhone: +(91)-(512)-2530512 Fax: +(91)-(512)-2530512Website: http://www.indiamart.com/unitedexim/SHARMA LEATHER PRODUCTS P. LTD. 182
    • INDIAN LEATHER INDUSTRYManufacturer and exporter of mens leather bags, ladies leather bags, leather travelbags, leather office bags, leather laptop cases, leather portfolio bags, leatherhandbags, ladies leather shoulder bags, leather wallets and leather purses.Address: 10 F, East Topsia Road, Kolkata - 700 046, IndiaPhone: +(91)-(33)-22853211/32901680 Fax: +(91)-(33)-22853992Website: http://www.sharmaleather.com/GREEN EARTH INTERNATIONALManufacturers and exporters of wide range of fashion and designer bags includingladies hand bags, shoulder bags, beach bags, festive occasional bags, printed bags,jute pouches, jute leather bags, jute fashion bags and union fabric bags.Address: 32, Armenian Street, Ist Floor, Kolkata - 700 001, IndiaPhone: +(91)-(33)-9830026178/25837230/22725935 Fax: +(91)-(33)-25832622Website: http://www.baghunt.com/high-fashion-bags.htmlPARADISE NOBLE CREATIONSEngaged in supplying of leather products like leather horse saddles, horse harness,leather horse bridles, leather halters, leather chaps and stirrup leather.Address: 20- A, Co Operative Industrial Area, Kanpur - 208 022, IndiaPhone: +(91)-(512)-2295113 Fax: +(91)-(512)-2218267Website: http://www.indiamart.com/paradisenoble/PARAS INDIA EXPORTSExporters and sellers of beaded canvas bags, leather bags, suede leather bags,canvas bags, embroidered bags, jute carry bags, embroidered canvas bags, denimbags, denim back pack, jute bags. Also offer leather cushion covers and kitchengloves.Address: D-16/175, Sector - 7, Rohini, New Delhi - 110 085, IndiaPhone: +(91)-(11)-65731089 Fax: +(91)-(11)-47019723Website: http://www.indiamart.com/parasindiaexports/SG EXPORTSEngaged in manufacture and supply of finished leathers such as finished cowleathers, silk printed leathers, embossed finished leathers, stretched leathers and 183
    • INDIAN LEATHER INDUSTRYfinished buff leathers available in different colors, prints and patterns.Address: 31, 1st Floor, Functional Industrial Estate Patparganj, New Delhi - 110092, IndiaPhone: +(91)-(11)-22158059 Fax: +(91)-(11)-22158078Website: http://www.sbmdubai.com/leather-products.htmlKHALIQUE SONS INTERNATIONALEngaged in exporting and manufacturing of horse leather clothing, animal leatherclothong, leather saddle, leather halter, leather lead, horse leather saddle, leathersaddle, horse saddle, dogs coats, horse rugs, exercise sheets and combo fly sheets.Address: 4/25, Bhikampura Street, Farukhabad - 209 625, IndiaPhone: +(91)-(5692)-246042 Fax: +(91)-(5692)-246489Website: http://www.indiamart.com/khaliquesons/SKIN CRAFTEngaged in manufacturing of leather garments of men and women such as leathercoats, ladies leather dresses, leather long coats, leather overcoats, leather trenchcoats, leather jackets, mens leather coats, leather trousers and leather jeans.Address: B-12/3, Okhla Phase-11, New Delhi - 110 020, IndiaPhone: +(91)-(11)-41707250/41707251 Fax: +(91)-(11)-41707252Website: http://www.indiamart.com/skincraft-leather-garments/RIYA IMPEXManufacturing and suppling of leather footweats, leather shoes, leather boot,leather ballerina. Also supply woven ready made garments, leather shirts, ladiesjackets, ladies long coats, leather trousers, mens manfred.Address: A-9, Milap Nagar, Uttam Nagar, New Delhi - 110 059, IndiaPhone: +(91)-(11)-28566104/28565080 Fax: +(91)-(11)-28565207Website: http://www.indiamart.com/riyaimpex/HI-GLO HOLO IMAGES PVT. LTD.Manufacturing and exporting different types of stickers, labels and hologramsticker like printed hologram labels, 3d holographic films, 3d hologram labels,dome labels, hologram labels, hologram shrink labels, metal labels and tamper 184
    • INDIAN LEATHER INDUSTRYproof holograms.Address: Near Bhakra Bridge, Vill Rauni, Patiala-Nabha Road, Patiala - 147 004,IndiaPhone: +(91)-(175)-2366852/2366998/2365691 Fax: +(91)-(175)-2366998/2366852Website: http://www.indiamart.com/higlo/POOJA EXPORTSEngaged in manufacture of leather bags, leather wallets, leather business planners,leather executive bags, leather business organizers, ladies hand bags, leatherbriefcase, leather card holder, leather mobile cover, leather file folders and keychains.Address: A/67, Jai Bajrangbali Co-op Society, Khambdev Nagar, Sion-bandraLink Road, Mumbai - 400 017, IndiaPhone: +(91)-(22)-24072860 Fax: +(91)-(22)-24072860Website: http://www.indiamart.com/poojaexports/DHIREN CHEMICAL INDUSTRIESManufacturer and supplier of leather industry chemicals, leather treatmentchemicals such as wetting agent & emulsifier, emulsifiers for fat liquors, apeo freebiodegradable for wetting detergent, for degreasing and for dispersing.Address: 118, Panorama, R. C. Dutt Road, Baroda - 390 007, IndiaPhone: +(91)-(265)-6621219 Fax: +(91)-(265)-2331119Website: http://www.indiamart.com/dhirenchemical/BLACK JACK INDIA LIMITEDManufacturer, supplier and exporter of leather tool bags, leather carpenter apron,leather dry wall bag, leather two pockets nail bag, fixed hammer holder, revolvinghammer holder.Address: D - 63, South City - 1, Gurgaon - 122 001, IndiaPhone: +(91)-(124)-3250048/4269922/23 Fax: +(91)-(124)-4269766Website: http://www.blackjacktools.com/tool-bags.htmlAKIN SONS 185
    • INDIAN LEATHER INDUSTRYDealers and manufacturer of safety shoes like industrial safety shoes, safeguardsafety shoes, work safety shoes, mens safety shoes, antistatic safety shoes, leathersafety footwears, leather safety shoes and mens safety footwears.Address: 557, Pati Ram Street, Delhi - 110 006, IndiaPhone: +(91)-(11)-23236730 Fax: +(91)-(11)-23231420Website: http://www.indiamart.com/akinsons/PAM INTERNATIONALManufacturers and exporters of ladies leather hand bags, fashion handbags, fancyhandbags, leather evening handbags, leather travel bags, leather executive bags,ladies leather wallets, mens leather wallets, leather purses and leather coin purses.Address: 15, Janak Road, Kolkata - 700 029, IndiaPhone: +(91)-(33)-24610493 Fax: +(91)-(33)-24610493Website: http://www.indiamart.com/pamxports/STAR ADVERTISERSengaged in supplying and exporting of leather goods &accessories such as leather desk accessories, leather office laptop bags,leather office briefcase, leather corporate bags, leather desk sets, leather corporateplanners, etc.Address: 1/371-B, Shastri Colony, Main Link Road, Faridabad - 121 001, IndiaPhone: +(91)-(129)-4044866/6517331Website: http://www.indiamart.com/staradvertisers/V. I. FASHIONSManufacturers and exporters of fashion bags such as leather fashion bags, coloredfashion bags, ladies fashion bags, designer fashion bags, crafted fashion bags. Alsosells leather shopping bags, leather wallet, leather evening bag, leather purse, etc.Address: 24/6 Kustia Masjid Bari Lane, Kolkata - 700 039, IndiaPhone: +(91)-(33)-26671806 Fax: +(91)-(33)-22874502Website: http://www.indiamart.com/vifashions/INTERLABS HASEngaged in production of corporate gifts and promotional gifts like handmade 186
    • INDIAN LEATHER INDUSTRYpaper gifts, paper gift bags, paper note books, gents leather wallets, ladies leatherwallets, leather travel bags, executive leather bags and wooden paintings.Address: 6262/26 & 6262/26/2, IDGAH Road, Cross Road No. 8, InterlabsComplex, Ambala - 133 001, IndiaPhone: +(91)-(171)-2633304 Fax: +(91)-(171)-2643484Website: http://www.indiamart.com/interlabs-has/ARESS INTERNATIONALManufacturing and exporting leather bags, leather purses, leather hand bags, ladiesleather bags, leather wallets, mens leather wallets, ladies leather wallets, designermens leather wallets.Address: 98, Sarai Jullena, 2nd Floor Near Escorts Heart Institute, New Delhi -110 025, IndiaPhone: +(91)-(11)-65352942/23230330 Fax: +(91)-(11)-26906751Website: http://www.aressintl.com/leather-hand-bags.htmlANGEL FASHIONSExporters and suppliers of leather accessories like mens wallets, leather wallets,fancy leather wallets, black leather wallets, multiple pockets leather wallets anddesigner leather wallets. Also offer mens wear formal shirts and pants.Address: No. 3/188 Muthamizh Nagar, Kodungaiyur, Chennai - 600 118, IndiaPhone: +(91)-(44)-25590570Website: http://www.indiamart.com/angelfashions/readymade-garments.htmlPADMAVAHINI SAFE TECH PRIVATE LIMITEDEngaged in manufacturing and exporting of leather gloves like leather industrialgloves, leather safety gloves, leather leg guard, driving gloves, leather weldinggloves, comfortable leather gloves. Also deals in pvc hand gloves, hosiery handgloves.Address: Door No. 7/140- 5, Ruby Matriculation School Road, Keeranatham,Saravanampatti, Coimbatore - 641 035, IndiaPhone: +(91)-(422)-6531222Website: http://www.indiamart.com/padmavahinisafetech/ 187
    • INDIAN LEATHER INDUSTRYTECHNO COLOR CORPORATIONManufacturer and wholesale supplier of leather dyes and leather dyes colors. Alsoexport acid mordant dyes, acid milling dyes, non-benzidine direct dyes, acid dyes,acid metal complex dyes, textile and fabric dyes, solvent dyes and food colors.Address: Pitru Chhaya, Sanghvi Estate Govandi Station Rd, Govandi(E), Mumbai- 400088, IndiaPhone: +(91)-(22)-25576668/24071961/55973368 Fax: +(91)-(22)-25576578Website: http://www.indiamart.com/technocolour/SECOND MAY INTERNATIONALManufacturers of ladies leather handbags, leather touch bags, leather organizers,leather coin purses, canvas bags, jute bags, fashion bags, beach bags, packing bags,wine bags, multipurpose bags and mobile covers.Address: D- 147, EPIP, Site- 5, Kasna, Greater Noida - 201 306, IndiaPhone: +(91)-(120)-6456844/6549094 Fax: +(91)-(120)-2341194Website: http://www.secondmay.net/wine-gift-leather-bags.htmlSFM BUYING SERVICESBuying house and exporters of leather bags, ladies leather bags, designer leatherbags and ladies designer leather bags. Also supplying wall hanging, stuffed wallhangings, designer wall hangings and decorative wall hangings.Address: Khasra # 10/1, (4-6) Old Highway, Delhi - Gurgaon Road, Samalka, NewDelhi - 110 037, IndiaPhone: +(91)-(11)-25061203/25061119/25061120 Fax: +(91)-(11)-25061201Website: http://www.indiamart.com/sfmbuyingservices/ESS AAR UNIVERSAL PRIVATE LIMITEDManufacturer and exporter of footwear soles and slippers including shoes soles,PU soles, footwear soles, leather footwear soles, men footwear soles, mid soles,female feet soles, kids footwear soles, bathroom slippers, ladies slippers, mensslippers.Address: A-40/1, Site- IV, Industrial Area, Sahibabad - 201 010, India 188
    • INDIAN LEATHER INDUSTRYPhone: +(91)-(120)-2896012/2896074 Fax: +(91)-(120)-2895951Website: http://www.essaarpu.com/polyurethane-soles.htmlSADDLES INC, BANGALOREEngaged in manufacturing and exporting of aniline leather, glazed leather, nappaleather, polished leather, soft leather. Also available with finished aniline leather,stallion leather, mustang leather, nappa studio and napkin holder.Address: 131, 6th cross, 4th A main, N.S. Palya, Btm II Stage, Bannerghatta Road,Bangalore - 560 076, IndiaPhone: +(91)-(80)-26783120/26781965 Fax: +(91)-(80)-26783121Website: http://www.indiamart.com/saddlesinc/BENGAL EXPORTSExporting and manufacturing ladies leather bags, leather hand bags, ladies leatherhand bags, ladies hand bags, designer bags, hand purses annd ladies leather purses.Also deals in minerals, food grains, garments and other fashion accessories.Address: 60, Lenin Sarani, 2nd Floor, Kolkata - 700 013, IndiaPhone: +(91)-(33)-22469796/22263993 Fax: +(91)-(33)-22469803Website: http://www.indiamart.com/bengalexports/RAJU SAFETY PRODUCTSEngaged in manufacturing and supplying of industrial safety products like safetyhand gloves, nylon harness, helmet with tourch, safety shoes, fire suits, life jacket,window climbing belt and leather safety belts.Address: 312, Abubakar Chawl, Bagicha, Dharavi, Mumbai - 400 017, IndiaPhone: +(91)-(22)-24028377 Fax: +(91)-(22)-24018271Website: http://www.indiamart.com/raju-safety/PIONEER OVERSEASManufacturing woven leather rugs, hand woven leather rugs, leather mats andwoven leather mats in various designs and textures.Address: 217, Suneja Tower-II, District Center, Janakpuri, New Delhi - 110 058,India 189
    • INDIAN LEATHER INDUSTRYPhone: +(91)-(11)-25511126 Fax: +(91)-(11)-25551026Website: http://www.pioneer-overseas.com/J.S. CREATIONSManufacturers and exporters of leather products like leather bags, ladies leatherbags, leather wallets, leather purses, leather clutches, leather credit card holders,leather passport holders, leather planners, leather portfolios and leather cases.Address: 14/E, Tiljala Shibtola Lane, Kolkata - 700 039, IndiaPhone: +(91)-(33)-23443445 Fax: +(91)-(33)-23444575Website: http://www.indiamart.com/jscreations-leather-goods/A. N. PAL CHOWDHURY ENGG ENTEPRISESEngaged in manufacturing and supplying of leather wallets, ladies leather wallets,mens leather wallets, tirfold leather wallets, bifold leather wallets, leather chainwallets along with scaffolding couplers, column clamps, props clamps.Address: 23-A, Netaji Subhas Road, 3rd Floor, Room No. 11, Kolkata - 700 001,IndiaPhone: +(91)-(33)-26518511/26511511 Fax: +(91)-(33)-22304471Website: http://www.anpengg.com/whatweoffer.htmlPOOJA INTERNATIONALLeading manufacturer and exporter of fashion footwear, designer footwear,embroidered footwear, ladies sandals, beaded sandals, mens leather shoes, leatherformal shoes, designer shoes, party wear sandals and fancy sandals.Address: 29-NC, Block- B, New Alipur, Kolkata - 700 053, IndiaPhone: +(91)-(33)-24588213 Fax: +(91)-(33)-24788420Website: http://www.indiamart.com/poojainternational/COLORSOFPASSIONManufacturer and wholesale exporter of leather mojris, designer leather mojris,fancy leather mojris, ladies leather mojris and trendy leather mojris. Alsomanufacture leather cushion covers, leather belts and leather automobile seatcovers.Address: 212/213, Building No.5 Jogani Industrial Estate, Mumbai - 400 022, 190
    • INDIAN LEATHER INDUSTRYIndiaPhone: +(91)-9892211017 Fax: +(91)-(22)-24057887Website: http://www.indiamart.com/colorsofpassion/CALBOT & CO.Manufacturer, supplier and exporter of leather products such as leather animalfigurine, decorative leather animal figurine, leather camel figurine, leather horsesfigurine, leather deer figurine, leather elephant figurine and leather giraffe figurine.Address: D- 110, Sector- 40, Noida - 201 303, IndiaPhone: +(91)-(120)-4340211/3250756Website: http://www.indiamart.com/calbot/BAWA LEATHERSManufacturer and supplier of Indian markets for leather bags, leather executivebags, leather travel bags, laptop bags, medical representative bags, leatherbriefcases, leather wallets and leather kit bags.Address: 11071, Street No. 2, Doriwalan, Karol Bagh, New Delhi - 110 005, IndiaPhone: +(91)-(11)-32600727Website: http://www.indiamart.com/bawaleathers/CRESCENT TANNERYExporters and manufacturers of leather organizers mobile phone covers, leatherjackets, telephone diary, pen holders, key rings, pouches, designer wallets, leatherbag, bags, travel bags, coin purses and other leather accessories.Address: 81/1 Tiljala Road, Kolkata - 700 043, IndiaPhone: +(91)-(33)-23448923/23434210 Fax: +(91)-(33)-23438869/22843651Website: http://www.crescenttannery.com/AMERICOS INDUSTRIES INC.Manufacturing organic solvents and pigments, organic polymer resins, leather softchemicals, textile softeners, dyes, chemicals and colors like speciality chemicals,dyestuffs, dpdf colors for denims, textile enzymes.Address: B-610/611, Ganesh Plaza, NR Navrangpura Post Office, Ahmedabad -380 009, India 191
    • INDIAN LEATHER INDUSTRYPhone: +(91)-(79)-26447781/26447782/26447736 Fax: +(91)-(79)-26447736Website: http://www.kenencoregroup.com/organic-polymer-resin.htmlSRF FABRICSEngaged in manufacturing and supplying of variety of leather bags, laptop bags,laptop computer bags, leather laptop bags, leather laptop computer bags, designerlaptop bags, designer leather laptop bags and strap handled laptop bags.Address: 1254/3 , New Bhawani Peth, Burudipool, Pune - 411 042, IndiaPhone: +(91)-(20)-26356287/26332881Website: http://www.indiamart.com/srf-fabrics/AEON OVERSEASmanufacturers and exporters of handicraft products, handmade paper, handmadephoto albums, handmade gift boxes, handmade gift bags, triangular boxes,handmade journals and handmade notebooks.Address: D14 / 07 First Floor, The Presidency, Ardee City, Sector 52, Gurgaon -122 012, IndiaPhone: +(91)-(124)-4144490 Fax: +(91)-(124)-2572762Website: http://www.indiamart.com/aeonoverseas/handmadepaperitems.htmlGEETANJALI IMPEX DELHIManufacture and supply leather wallet, mens leather wallet, card holder, businesscard holder, gents wallet, designer leather wallet, visiting card holder, laptop bag,promotional laptop bag, file folders, leather file folders and travel utility kits.Address: D- 153, Sector - 40, Noida - 201 301, IndiaPhone: +(91)-(120)-4340905/43409056Website: http://www.indiamart.com/geetanjaliimpex/ 192
    • INDIAN LEATHER INDUSTRYBIBLIOGRAPHYINTERNET SITES:• www.google.com• http://dgciskol.gov.in/Dgcis.htm• www.ministyofcommerce.com• www.tradeportalofindia.com• www.indianleathercouncil.com• www.wikipedia.com• www.councilofleatherexport.com• www.eximbankindia.com 193
    • INDIAN LEATHER INDUSTRYBOOKS• Marketing management – By Philio Kotler• Britannica encyclopediaARTICLES:• IICCI – Short Market Overviews-the indo-Italian chamber of commerce and industry• Strategies for Enhancing the Competitiveness of Leather Industry in India, by Mrs. Anamika Singh• EXIM BANK: RESEARCH BRIEF,Indian Leather Industry: Perspective and Export Potential 194