leather Craft cluster of chennai

CRAFT
CLUSTER:
LEATHER
CHENNAI
By:
Chandni Shah
Aditi Srivastava

CONTENT
CRAFT - LEATHER
HISTORY
CRAFT CLUSTER -
CHENNAI
CRAFT & CLUSTER :
SPECIALITY
PRODUCTS
MARKET ANALYSIS
CONFRONTING
CHALLENGES
GOVERNMENT AID
LOOKING FORWARD
ALTERNATIVE
CREATING A CONSUMER
MOVEMENT
REFERENCES
1.
2.
3.
4.
5.
6.
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DEC 2020CRAFT CLUSTER:LEATHER //

CRAFT : LEATHER
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Leathercraft is the practice of making
leather into craft objects or works of art,
using various techniques. There are majorly
5 types of leather, namely, full grain, top
grain, genuine, split grain, and bonded
leather.
Leather industry has gone under massive
change from being a mere exporter of raw
materials in 60's to the exporter of finished
goods in 70's. Liberalisation and
globalization of the trade has further
boosted this age old craft. Today India is
the second largest producer of leather after
China, specifically in footwear production.
Manufacturing leather involves several
processes. Raw material for leather
production, namely, raw hides and skin are
sourced by tanneries in wet-salted
condition. The following are the processes
and activities pursued in a tannery:
1. Soaking: The wet-salted hides and skin
are soaked in plain water with chemicals
which aid the re-hydration of hides and
skin. The salt is thus dissolved in soaking
water. A large amount of water, more than
20 cubic-meters per tonne of hides, is r

equired in this activity.
2. Liming and un-hairing: The soaked hides
and skin are taken for liming in which
compact fibrous material is loosened so
that the chemicals used in the following
operations penetrate well into the fibrous
matter using sodium sulphide and lime. In
the same operation, the hair is removed
from the hides and skin.
3. De-liming and bating: The limed pelts
(hides and skin) are then subjected to
deliming to remove the lime and to clean
the hides and skin by further removing
unwanted components from the hides and
skin.
4. Fleshing: The excess flesh present in
the hides and skin are removed by a
fleshing
machine.
5. Pickling and chrome tanning: The pH of
the pelts is reduced in order to avoid
undesired swelling and facilitate
penetration of non-toxic trivalent chrome.
Tanning is completed using mild alkalies
chrome. The output is called wet-blue, i.e.,
semi-finished leather.
6. The hides are then split and shaved to
desired thickness. The shaved hides are
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re-anned using synthetic tanning agents.
The re-tanned hides are treated with fat
liquors to impart flexibility and softness.
Along with the fat liquors, dyes are added
to dye the leather. These chemicals are
fixed using formic acid. This completes the
wet operations.
7. The dyed leather is set in a machine to
make the surface flat and vacuum dried.
After drying, the leather is subjected to
mechanical operations, namely, staking,
buffing and toggling. The leather is then
finished using pigments, binders and feel
modifiers by spraying. The leather is then
plated to make the surface smooth. After
drying, the leather is subjected to
mechanical operations, namely, staking,
buffing and toggling. The leather is then
finished using pigments, binders and feel
modifiers by spraying. The leather is then
plated to make the surface smooth.
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MANUFACTURING FLOW
CHART
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From skin to finished leather

Since the dawn of humanity, mankind
has shown an aptitude for invention.
When prehistoric man hunted for food,
they realized that they could use more of
the animal than just the meat. With this
idea came the birth of leather.
Evidence for hideworking, scraping hides
for tanning, exists from around 400,000
years ago.The earliest known bone awls
appear between 84,000 and 72,000 years
ago in South Africa. Based on their wear
patterns, it is believed they were used to
pierce materials.In Armenia, the oldest
known pair of leather shoes were
discovered, dating back to 3,500 BC.n
the Stone Age, we begin to see some of
the earliest confirmed leather tanning
tools. Moving into the Bronze Age and
the Iron Age, leather was also used to
make protective shields and luxurious
jewelry.
Throughout the Middle Ages and the
Renaissance, leathercraft met a creative
and artistic boom. Leather wasn’t just
tanned, but painted, dyed, carved,
HISTORY
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, shaped, stamped, and molded. During
the Enlightenment, these techniques
were further mastered, and people from
this age created book covers, fancier
shoes, aprons, hats, bags, furniture, and
much more.
The introduction of machines in the
Industrial Revolution transformed
leather production, greatly speeding up
the process. In 1858, a new tanning
method came about: Chromium tanning.
Using this method instead of the
vegetable tanning method resulted in
leather products that were softer and
thinner. It’s also amazing how similar
some of the processes to produce it and
uses for it are, even so many years
later. Leather truly is a timeless
material.
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CRAFT CLUSTER : CHENNAI
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All India Skin and Hide Tanners
Manufacturers and Exporters
Association (AISHTMA)
Indian Finished Leather Manufacturers
and Exporters Association (IFLMEA)
Indian Shoe Federation (ISF)
Pallavaram and the Madhavaram
Tanners Association
Indian Leather Products Association
(ILPA)
Tamil Nadu Small and Tiny Industries
Association (TANSTIA)
The Leather industry in India accounts for
around 12.9% of the world’s leather
production of hides/skins. It's current
share in global trade is 2.35 per cent.
(INDUSTRIAL POTENTIAL SURVEY REPORT
- CHENNAI 2001 - 2002, 2020)
Chennai is closely integrated with global
value-chains due to convenient access to
large raw material, tannery base and port
facilities.
Associations in cluster:
1.
2.
3.
4.
5.
6.
Chennai in Tamil Nadu which is a hub of
modern factories producing leather
footwear and accounts for the highest
export of leather from India. It also has

research centre named Central Leather
Research Centre. Irungattukottai, near
Chennai, will soon be the one of the four
new additions to the leather cluster in
Chennai which is expected to bring an
investment of about $50-100 million and
provide 100,000 jobs of which 85 per cent
will be for women with the addition of
more factories.(Bureau, 2020)
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CRAFT & CLUSTER :
SPECIALITY
Being one of the best materials, leather
has been used in manufacturing shoes
and accessories since paleolithic times.
The enduring presence of leather may be
attributed to its properties, it can be
shaped and cut with ease, for it is light
and strong and most importantly, it
breathes.
The cluster consists of large numbers of
input suppliers, repairing workshops,
warehouses for storing raw hides and
skins and several tiny unregulated units
for converting waste material into
various articles that are transported to
local markets. In addition, the cluster
also has an office of the Labour
Commissioner, as well as several
branches of nationalized banks catering
quite exclusively to the sector's credit
needs. Therefore it appears better
regulated and more organised.
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KEY OBSERVATIONS:
Leather clusters all over india
and the flow of goods, both raw
and finished
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Semi-finished & Finished Leather
Leather Footwear Component
Men's Footwear
Leather Goods
Leather Garments
PRODUCTS
THIS CRAFT CLUSTER PRODUCS FOR SHIPPING TO
INDUSTRIES OF NEXT LEVEL OR FOR EXPORT
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STRENGTH
High Growth
Availability of high skilled and
cheap labour
Large Raw Material Base
Policy initiatives taken by
government
Capability to assimiate new
technologies
Continuous emphasis on
product development
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WEAKNESSES
Lack of warehousing support
international price fluctuation
Huge Labour Force resulting in
high labour charges
Lack of strong presence in the
global fashion market
Unawareness of international
standards
OPPORTUNITES
Rising potential in the
domestic market
Growing Fashion consciousness
globally
Use of IT and decision support
software to help eliminate the
length of the production cycle
for different products
Use of e-commerce in direct
marketing
THREATS
Major part of the industry is
unorganised
Limited scope for mobilising
funds through private
placements and public issues
Difficulty in obtaining bank
loans resulting in high cost of
private borrowing
Stricter international standards
High competition from East
European countries and other
Asian countries
Lack of communication
facilities and skills

MARKETING :
DOMESTIC &
EXPORTS
65% of the units sell through the
intermediaries, they either do job
work or sell indirectly
20% of the big units have direct
orders and export/sell directly,
sometimes they sell to other
factories with their brand name
Nearly 15% of the units sell partially
to direct buyers and partially through
jobbers - this includes shoe bottom
and machinery accessories
78% of the units have regular orders
from other firms, these units prefer
to either fully produce or partially
sell on regular orders so that they
can provide jobs to their workers
regularly
All units have different marketing
channels. Some supply to just one
company and some have collaborated
with 6 companies.
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DOMESTIC

Most big enterprises are
manufacturer-exporters (KH, Bachi
Shoes, and Ram Leathers)
The major markets are the European
Union (including the UK) and the US
Most of the world’s major footwear
brands (Clarks, Versace, Next, Hugo
Boss, Florsheim, Gabo, Salamander,
Guess…) source from the factories in
Ranipet and nearby towns (Ambur)
Large firms and many medium-sized
firms export directly, but the rest of
them export indirectly through
merchant exporters or importing
agents in Chennai
Grain, introduced in 2014, the
Mumbai-based studio is championing
cruelty-free design by using only
Ahimsa leather to produce bags, sans
any lining. The inside is left exposed
to maintain a raw and natural-
looking appeal. “We source our
material from tanneries located in
Chennai that only sell treated leather
obtained from non-slaughtered
buffalo, cows and sheep. For us, it’s
mostly the cow skin because it’s got
a smoother texture,” says Avinash
Bhalerao - the Founder.
1 5

1 6
Tamil Nadu is the biggest leather exporter
(40%) of the country and its share in
India’s output on leather products is 70%
Export trade in raw hides and skins and
leather began in the 1830s
By 1850 it began exporting tanned hides
and skins
Exports from Madras thus surged and both
U.K and Germany became significant
importers of tanned leather as well as raw
hides and skins
India’s export of leather, leather products and
footwear fell about 16.8% to $356.15 million
in August 2020, when compared to $428.16
million in August 2019. However, industry
sources said the exports were showing signs
of revival.
EXPORTS

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International export started only during
the 1880s
During 1900-1914, the export scene was
dominated by Calcutta and Madras with
the former exporting raw goods and the
latter tanned ones
In 1912-13, the total export of hides/skins
amounted to Rs. 8 crores as against Rs.4
crores from Madras
Clusters are exclusively export oriented,
with units either exporting directly, or
fabricating for exporters, or doing job
work for export production, or selling to
exporters
EXPORTS

1 8

CONFRONTING
CHALLENGES
1 9
Low level of trade union presence
and a lack of collective
representation at various levels
contribute to the multiple barriers
workers experience and labour rights
abuse especially in the lower tier of
supply chains.
On environmental practices, leather
goods manufacturing is pollution-
intensive, the efforts of export firms
facing stringent controls in the
Organization of Economic
Cooperation and Development
(OECD) markets have helped lower
pollution levels but are not enough.
Hence we need to look for better
sustainable ways for leather
production or alternative materials
like piñatex.
leather garment and footwear
manufacturers have asked the
government not to treat semi-
finished leather as a finished product
fit for export, as this has a significant
impact on the availability
1.
2.
3.

2 0
of domestic raw materials.
4. The Indian industry mainly relies on
local raw material, such as rawhides and
skins. As hides of Indian origin come
with lot of surface defects, which makes
the appearance/quality inferior and
thereby less valuable, there is a need for
technologies and design intervention
along with training with the latest
technology for finished leather.

GOVERNMENT AIDS
The Government of India has identified
the Leather Sector as a focus Sector and
will take initiatives towards favorable
trade policies, increasing industry
compliance to international standards
and introduce innovative technology
Four new clusters with plug-and-play
model factories for leather products
manufacturing will be set up in Tamil
Nadu, Katpadi in Vellore district; Bargur
in Krishnagiri; Tindivanam in Villupuram
district; and Irungattukottai near Chennai
are the four places identified for the
proposed factories. Under the plug-and-
play model, the state government offers
land, road-connectivity, drainage and
electricity connection to the industry.
The new factories will be strictly
manufacture products like shoes,
handbags and wallets.Make in India,
Invest India, Department for Promotion
of Industry and Internal Trade (DPIIT) and
CLE have together marked six countries
to bring investments. The new factories
2 1

that will come up at the four clusters
will bring an investment of about $50-
100 million and provide 100,000 jobs
of which 85 per cent will be for
women, he added.
Mega Leather Scheme under (Indian
Leather Development Programme) ILPD
under which the government has
allocated Rs,600 Cr on land
development, infrastructure, capacity
building, engineering & construction
supervision, project development and
execution consultancy.
Implementation of Central Sector
Scheme - Indian Footwear, Leather &
Accessories Development Programme
(IFLADP) with an approved expenditure
of Rs. 2600 Crore for 2017-20.The
scheme aims at development of
infrastructure for the leather sector,
address environmental concerns
specific to the leather sector, facilitate
additional investments, generate
employment and increase production.
The Government of India had identified
the Leather Sector as a focus Sector
and will take initiatives towards
favorable trade policies, increasing
industry compliance to international
standards and introduce innovative
technology
2 2

The Indian leather industry, which
employs nearly 4.2 million people, will
recover in 3-4 months after the lockdown
is lifted, and stabilise in 6-8 months
hence, it is expected.With some of the
leading markets such as Italy, Spain and
Germany opening up, domestic leather
industry officials feel India in an
advantageous situation given the current
negative sentiments against China.
LOOKING FORWARD
2 3

PIÑATEX: VEGAN LEATHER
AN ALTERNATIVE TO LEATHER MADE FROM
ANIMAL SKIN
Leaf Collection
Fibre Extraction
Washing & Drying
Purification
Piñafelt
Finishing
Piñatex
End product
Piñatex is PETA approved and registered by the
Vegan Society. It is a natural, sustainably-
sourced, cruelty free material. An innovative
natural textile made from waste pineapple leaf
fibre. The leaves are the byproduct of existing
agriculture, and their use creates an additional
income stream for farming communities. It is a
new, non-woven textile that could be
commercially produced, provides a positive social
and economic impact and maintain a low
environmental footprint throughout its life cycle.
The raw material that forms the base of Piñatex
is a by-product of the pineapple harvest.
Manufacturing process:
Piñatex is not 100% biodegradable. The
substrate/base material of Piñatex (made from
80% pineapple leaf fibre, 20% PLA) is
biodegradable under controlled industry
conditions.
2 4

CREATING A CONSUMER
MOVEMENT
We can generate a bigger and better
market for leather all across India.
Majority of products, either raw material
or finished products are exported to
other countries.
With this era of start-ups, we can focus
on marketing Indian made leather goods
sold directly.
Leather is not a sustainable craft
because of filthy working conditions and
animal cruelty, thus mane people stay
away from buying leather especially the
cheap leather. As an intervention, we
should provide with sustainable options
of leather to cater to this market.
2 5

REFERENCES
2 6
All eyes on Chennai - Leather
International. (2019, January 31).
Www.Leathermag.com.
http://www.leathermag.com/features/f
eatureall-eyes-on-chennai-6968800/
Bureau, O. (2020, January 29). Four
new clusters in TN for leather products
manufacturing soon. @businessline.
https://www.thehindubusinessline.com
/news/national/four-new-clusters-in-
tn-for-leather-products-manufacturing-
soon/article30685424.ece
Cluster Map. (n.d.).
Www.Clusterobservatory.In;
ClusterObservatory.in | Developed by
SPcits A Project of Foundation for
MSME Clusters. Retrieved November
30, 2020, from
https://www.clusterobservatory.in/clust
ermap/cluster_read.php?
map_id=20145&div=82
CLUSTER TWINNING Understanding the
Dynamics and Methodological Issues.
(2013).
https://www.unido.org/sites/default/fil
es/2013-11/Cluster-Twinning-
msme_0.pdf

REFERENCES
2 7
Craft Clusters of India. (n.d.).
Www.Craftclustersofindia.In. Retrieved
November 30, 2020, from
http://www.craftclustersofindia.in/site/
index.aspx?Clid=611
Delaney, D. A. (2016). Barriers to
Grievance: Leather Footwear Workers
in Tamil Nadu, South India. In
Static1.squarespace (Vol. 12, p. 56).
Creative Commons Attribution Non-
commercial Share Alike.
https://static1.squarespace.com/static/
57e140116a4963b5a1ad9780/t/583772
e7579fb34d13fbc8ba/1480028927920/
NJM12_footwear.pdf
INDUSTRIAL POTENTIAL SURVEY
REPORT - CHENNAI 2001 - 2002.
(2020, November 30).
Www.Dcmsme.Gov.In.
https://www.dcmsme.gov.in/publicatio
ns/traderep/chennai/chennai8.htm
INDUSTRIAL POTENTIAL SURVEY
REPORT - CHENNAI 2001 - 2002.
(2020, November 30).
Www.Dcmsme.Gov.In.
https://www.dcmsme.gov.in/publicatio
ns/traderep/chennai/chennai8.htm

REFERENCES
2 8
Kumar, A. (2012). Credit Gap Mapping
of Select Clusters 2 Published by:
MSME Financing and Development
Component of MSME Umbrella
Programme Implemented jointly by GIZ
and Project Management Division -
SIDBI Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ)
GmbH MSME Umbrella Programme.
https://www.giz.de/en/downloads/giz2
012-en-credit-gap-mapping-leather-
clusters.pdf
Leather exports close in on pre-Covid
mark. (n.d.). The New Indian Express.
Retrieved November 30, 2020, from
https://www.newindianexpress.com/bu
siness/2020/oct/03/leather-exports-
close-in-on-pre-covid-mark-
2205148.html
Leather Industry in India - Export,
Production, & Market Size. (n.d.).
Www.Investindia.Gov.In.
https://www.investindia.gov.in/sector/l
eather

REFERENCES
2 9
Simhan, T. R. (n.d.). Leather industry
looks at way forward once lockdown is
over. @businessline. Retrieved
November 30, 2020, from
https://www.thehindubusinessline.com
/companies/leather-industry-looks-at-
way-forward-as-lockdown-
lifts/article31593487.ece
Special Correspondent. (2020,
September 20). Leather exports down
16.8% in August 2020. The Hindu.
https://www.thehindu.com/news/cities/
chennai/leather-exports-down-168-in-
august-2020/article32655629.ece
Diagnostic Study of Leather and
Leather Products Cluster of Chennai.
(n.d.). Retrieved November 30, 2020,
from
https://clusterobservatory.in/dsr/130.p
dfSpecial Correspondent. (2020,

REFERENCES
3 0
INDIAN LEATHER INDUSTRY Council
For Leather Exports. (n.d.).
Leatherindia.org.
https://leatherindia.org/indian-leather-
industry/Special Correspondent. (2020,
Harris, S. & A.J. Veldmeijer (eds) 2014:
Why Leather? The Material
and Cultural Dimensions of Leather.
Leiden: Sidestone Press.
References3 accessory brands you need
to know about to shop leather
responsibly. (n.d.). Vogue India.
https://www.vogue.in/fashion/content/
responsible-leather-accessory-brands-
to-shop-now-in-india-swarang-
designs-grain-chiaroscuro-bags

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