1. FOOTWEAR

Indian Footwear Industry A Status Note

The footwear sector is a very significant segment of the leather industry in India; rather it is the engine of growth for the entire Indian leather industry. India is the second largest global producer of footwear after China, accounting for 13% of global footwear production of 16 billion pairs. India produces 2065 million pairs of different categories of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million pairs and non-leather footwear - 1056 million pairs). India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand. The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulam. About 1.10 million are engaged in the footwear manufacturing industry. . Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials. Brands sourced from India:

Footwear

Acme, Ann Taylor, Bally, Charter Club, Clarks, Coach, Colehann, Daniel Hector, Deichmann, DKNY, DoubleH, Ecco, Elefanten, Etienneaigner, Florsheim, Gabor, Geoffrey Beene, Guess, Harrods, Hasley, Hush Puppies, Kenneth Cole, Liz Claiborne, Marks &Spencer, Nautica, Next, Nike, Cole Haan, Nunn Bush, Pierre Cardin, Reebok, Rockport, Salamander, StacyAdams, Tommy Hilfiger, Tony Lama, Versace, Yves St. Laurent, Zara, Johnston & Murphy, Docksteps,Timberland, Armani, Geox, Diesel, Ted Baker, Lacoste, Kickers, Calvin Klein, Sioux, Brasher, Zegna, Massimu Dutti, Buggatti, Lloyd, Christian Dier, Salamander, Camper, Bata, Espirit, French Connection, Legero, Mercedez, H & M and many more famous brands

Besides, major brands are sourced from India, MNC brands are sold in India and Indian brands sold in India.

MNC Brands Sold in India Indian Brands sold in India

Aldo, Bally, Clarks, Ecco, Florshiem, Ferragammo, Hush Puppies, Lee cooper, Lloyd, Marks & Spencer, Nike, Nine West, New Balance, Reebok, Rockport, Stacy Adams

Red Tape, Bata, Liberty, Khadims, Lakhani, Metro, Action

US Retail giant Wal-Mart has also begun sourcing footwear from India since the last two years. The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern lines with state-of-the-art machinery. To further assist this process, the Government has permitted 100% Foreign Direct Investment through the automatic route for the footwear sector. Conducive Investment climate towards attracting overseas investments and increasing cost competitiveness. The Government of India is setting up dedicated Footwear Complex and Footwear Components Part where footwear clusters are located. There has been active interest in collaborating with Indian Footwear companies from European countries like Italy, Spain and Portugal. Footwear Imports Global Trend: Major Importing Countries of Footwear (Leather and Non-Leather) (Value in Million US$)

Country 2004 2005 2006 2007 2008 2009 USA 17071.97 18548.37 19835.93 20039.13 20104.41 17904.13 Germany 4691.14 5238.97 5591.77 5966.99 6529.33 6037.73 France 4199.85 4500.22 4778.07 5473.04 5714.00 5379.78 UK 4492.02 4694.94 4950.49 5281.55 5213.00 4772.59 Hong Kong 4674.17 5098.24 4984.59 4881.67 4944.40 3974.30 Italy 3209.98 3621.06 4047.37 4529.77 4810.25 4457.88 Japan 2998.85 3300.28 3509.83 3750.04 4112.99 4077.58 Spain 1431.75 1734.24 2036.21 2388.74 2917.97 2464.34 Belgium 1804.03 1993.77 2057.39 2543.04 2892.62 2554.50 Russia 284.37 543.12 1121.68 2067.82 2843.81 2149.42 Netherlands 1459.10 1772.22 1978.33 2297.95 2570.86 2481.35 Canada 1183.91 1321.99 1507.21 1674.04 1747.94 1645.20 Source: ITC, Geneva

Major Exporting Countries of Footwear (Leather and Non-Leather) (Value in Million US$) Country 2004 2005 2006 2007 2008 2009

China 14626.36 18433.69 21014.63 24181.69 28115.96 26571.20 Italy 7791.31 7652.93 8246.51 9712.94 10218.75 8142.92 Hong Kong 5374.04 5828.40 5692.85 5639.64 5666.05 4502.49 Vietnam 2691.83 3039.17 3595.94 3999.48 4769.87 NA Belgium 1929.22 2509.34 2960.28 3375.63 3680.80 3464.10 Germany 2022.61 2316.30 2607.89 2999.19 3611.90 3194.69 Spain 2175.35 2041.37 2147.74 2440.47 2670.35 42487.12 Netherlands 1328.95 1493.61 1577.03 1811.96 2240.70 2235.80 France 1325.78 1376.52 1535.21 1840.51 2015.13 1800.70 Brazil 1814.01 1891.55 1863.11 1911.74 1881.30 1359.98 Indonesia 1247.23 1348.46 1514.63 1567.05 1828.44 1688.35 Portugal 1562.59 1413.71 1465.11 1695.88 1797.00 1552.74 Romania 1061.83 1175.70 1272.97 1394.32 1350.78 1054.93 Source: ITC, Geneva

Footwear Global Scenario and Indias share The global import of Footwear (both made of leather as well as non-leather) increased from US$ 67.15 billion in 2005 to US$ 77.36 billion in 2009, growing at a CAGR of 3.60%. During 2009, the Indias share in the global import is 1.95%. (In Million US$)

2005 2006 2007 2008 2009

Global import of Footwear 67151.86 73086.43 80943.61 87839.68 77360.60 India's export of Footwear & Footwear Components 1045.24 1236.91 1489.35 1534.32 1507.51 % Share of India 1.56% 1.70% 1.84% 1.75% 1.95% Source: ITC, Geneva & DGCI &S, Kolkata Global Footwear import includes leather & non-leather Indias Footwear includes Leather, non-leather and uppers

Footwear is the engine of growth of the leather industry in India. Indias export of

Footwear touched US$ 1732.04 million in 2010-11, accounting for a share of 45.05% in Indias total export from the leather sector of US$ 3844.86 mn.

Indias Footwear export (leather, uppers & non-leather) is growing at a CAGR of 8.78% in the last five years ending 2010-11

Indias export of leather footwear had increased from US$ 974.33 million in

2006-07 to US$ 1460.42 million in 2010-11. Indias export of footwear components had increased from US$ 219.84 million

in 2006-07 to US$ 215.03 million in 2010-11 Indias export of non-leather footwear has increased from US$ 42.74 million in

2006-07 to US$ 56.59 million in 2010-11

Indias Footwear Export Growth over the last Four Decades Export of footwear from India increased manifold over the last four decades. Today, Indias footwear export is valued at US$ 1732.04 million, constituting 45.05% share in

total export of leather & leather products.

Footwear exports has increased from US$ 99.77 million in 1980-81 to US$ 1732.04 million in 2010-11 Major Markets: During 2010-11, the main markets for Indian Footwear are UK with a share of 19.16%, Germany 16.15%, Italy 12.46%, USA 8.04%, France 8.93%, Spain 6.45%, Netherlands 4.51%, Portugal 1.41%, U.A.E 2.45% and Denmark 0.97.%. These 10 countries together accounts for 80.53% share in Indias total footwear export. Nearly 90% of Indias export of footwear goes to European Countries and the USA.

Future growth of Indian footwear in India will continue to be market driven. The European countries and the US are major consumers for the Indian footwear. Footwear Exports To major markets 2010-11

EU 79.15%, USA 8.04%, Australia 0.72% and others Others 12.09% A Statement showing Indias Export of Footwear to different countries: (Value in Million US$)

Country 2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

% Share

Germany 170.97 217.23 246.84 229.65 224.27 279.80 16.15% UK 195.78 208.2 241.37 247.06 296.45 331.92 19.16% Italy 134.35 186.11 229.81 221.09 209.95 215.81 12.46% USA 131.07 127.15 136.92 163.03 123.6 139.21 8.04% France 74.48 99.81 116.03 119.2 144.45 154.72 8.93% Spain 63.7 64.57 76.69 91.86 95.99 111.74 6.45% Netherlands 32.96 48.57 72.91 76.2 65.13 78.19 4.51% Portugal 22.15 35.03 37.34 28.21 22.63 24.38 1.41% UAE 25.78 34.64 39.23 39.4 39.61 42.36 2.45% Denmark 18.37 14.65 17.48 14.78 17.02 16.74 0.97% Australia 11.58 10.11 12.52 13.34 15.49 12.54 0.72% Sweden 6.77 7.99 12.04 12.64 12.2 13.76 0.79% Canada 11.95 10.91 10.41 8.96 9.3 10.40 0.60% South Africa 8.26 12.11 8.52 8.49 9.87 11.07 0.64% Japan 3.17 3.07 4.63 8.23 5.45 7.17 0.41% Others 133.9 156.76 226.61 252.18 216.37 282.23 16.29% Total 1045.24 1236.91 1489.35 1534.32 1507.51 1732.04 100.00%

Source: DGCI&S

Future Trends: - Keeping in view its past performance, current trends in global trade, the industrys inherent strengths and growth prospects, the footwear industry

aims to augment production, thereby enhancing its exports from the current level of US$ 1.73 billion. Partnerships that spell success Formas Kunz Brazil - This facility is coming up in the Footwear Component Park. Chennai, India. Feng-Tay Enterprises Co. Ltd., Taiwan - This is an SEZ-proposed facility in an area of 275 acres, coming up in SIPCOT Industrial Estate, Cheyyar (TN). Feng Tay is a manufacturer of sports shoes, skate shoes and casual shoes for Nike and other global brands.

Apache Footwear, China - This FDI is coming up in Tada Mandal, Nellore (AP), in an area of 340 acres. Apache is a supplier of shoes for Adidas and has manufacturing facilities in China. A few other examples are, Mondial (Italy), Suolificio Malaspina (Italy), Fagus(Germany), Zahonero Virgili SL, (Spain), Top Fondi (Italy), Xie Zhan Moulds (China) Indian footwear industry poised for growth India has state-of-the-art manufacturing plants. The footwear sector has matured from the level of the manual footwear manufacturing method to the automated footwear manufacturing systems. Footwear production units are installed with world class machines. Manned by skilled technicians, these machines help to turn any new innovative idea into reality. Support systems created for the sector have indeed served the footwear industry well. India has a well developed footwear component manufacturing industry. The future growth of the footwear industry in India will continue to be market-driven, and oriented towards EU and US markets. With technology and quality of the footwear improving year after year, Indian Footwear industry is stamping its class and expertise in the global footwear trade.

2. LEATHER GARMENTS

Leather Garments A Status Note

Global Scenario:

The global import of leather garments declined from US$ 3840.91 million in 2005 to US$ 3367.21 million in 2009. Indias share has increased from 8.68% to 12.73% during

the said period.

A Statement showing global import of leather Garments, Indias export and share during 2005-09

(Value in Million US$)

2005 2006 2007 2008 2009

Leather Garments

WORLD IMPORT 3840.91 3779.08 3986.18 4142.79 3367.21

INDIA'S EXPORT 333.30 309.91 345.34 426.17 428.62

% SHARE OF INDIA 8.68% 8.20% 8.66% 10.29% 12.73%

Source: ITC, Geneva

Major Importing countries of Leather Garments 6 years

(Value in Million US$)

Countries 2004 2005 2006 2007 2008 2009

USA 1250.38 1081.70 983.34 853.04 641.87 437.24

Germany 443.47 420.94 415.97 469.61 523.19 449.97

France 242.00 260.91 271.30 285.68 361.49 326.33

Italy 228.97 213.92 239.18 271.84 293.31 230.49

Spain 215.76 216.47 201.88 225.25 238.11 205.87

UK 212.97 207.92 199.27 226.95 224.20 184.60

Japan 173.13 170.99 171.27 185.27 177.75 166.32

Netherlands 91.74 96.73 115.74 143.32 159.09 132.57

Switzerland 105.38 105.51 108.55 124.69 141.79 118.58

Hong Kong 165.29 155.44 131.61 143.27 140.55 113.61

Belgium 106.16 111.50 108.10 114.06 128.72 119.42

Canada 105.36 104.23 111.43 111.38 105.63 79.24

Turkey 17.11 23.32 41.60 49.19 95.16 114.72

Austria 76.72 76.83 74.48 87.69 91.25 84.80

Denmark 42.02 54.93 72.49 70.53 89.64 60.86

Russia 31.56 19.49 31.99 58.00 76.15 63.40

Greece 86.56 65.09 59.73 57.27 51.89 40.81

Sweden 41.38 42.43 41.63 44.85 45.29 33.34

Poland 10.71 13.16 20.67 31.36 43.88 32.62

Portugal 37.62 35.74 29.30 36.56 36.30 32.35

China 13.18 14.80 18.26 31.04 46.31 42.39

Source: ITC, Geneva

Major Exporting countries of Leather Garments 6 years

(Value in Million US$)

Countries 2004 2005 2006 2007 2008 2009

China 2313.77 2289.77 1659.85 1307.77 1008.22 792.75

Italy 421.92 418.50 481.25 598.63 637.79 465.45

Pakistan 314.32 419.76 436.46 451.27 475.27 350.78

Germany 206.86 222.42 237.47 271.29 309.11 259.75

Turkey 234.21 204.37 208.88 232.39 256.11 192.95

USA 111.06 175.43 165.97 226.90 216.36 170.38

France 131.50 125.56 139.13 156.62 179.62 162.54

Hong Kong 215.21 207.41 178.17 185.14 175.85 151.87

Spain 70.32 73.52 66.72 88.25 114.20 122.94

Netherlands 48.31 52.11 56.91 73.03 85.94 78.04

Denmark 32.47 45.03 57.34 70.41 82.06 52.78

Switzerland 62.65 68.29 70.56 72.84 79.08 63.85

Belgium 57.68 63.90 61.88 64.24 67.15 57.78

UK 50.50 45.51 51.39 53.68 58.35 53.64

Source: ITC, Geneva

Indian Scenario:

Leather garments form a significant segment of the Leather Industry in India. Leather garments production capacity is estimated to be 16 million pieces annually. India produces different types of leather garments i.e., jackets, long coats, waist coats/shirts, pant/shorts, motorbike jackets, industrial leather garments, leather aprons etc.

India is the second largest producer of leather garments, next only to China, which produces 70 million pieces of the total global trade volume of about 120 million pieces.

It is a matter of great pride that Indian leather garments have been making giant strides in the world of fashion. National Institute of Fashion Technology and National Institute of Design lends design support to make continuous fashion statements. These Institutes provides well trained personnel and imaginative designers. Indias acknowledged strength is leather tanning and its ability to

produce a wide variety of fashion leathers.

Indias export of Leather Garments increased from US$ 309.91 mn in 2006-07 to US$ 400.83 million in 2010-11, growing at a CAGR of 6.64%.

Indias export of leather garments accounts for a share of 10.43% in Indias total leather trade of US$ 3844.86 million in 2010-11.

Indias position as the third largest global supplier of leather garments is only going to strengthen given the availability of quality raw material coupled with skilled craftsmanship.

Indias Export of Leather Garments Major markets 5 years

Major markets for Indian Leather Garments are Germany with a share of 25.75%, USA 5.34%, UK 5.29%, Italy 14.12%, France 13.89%, Spain 10.96%, Netherlands 4.07%, Denmark 4.63%, Canada 1.59%, Belgium 2.04%, UAE 1.04%

(Value in Million US$)

Countries 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Germany 55.67 53.41 69.40 100.26 109.18 103.21

USA 45.12 36.72 27.76 22.20 17.04 21.39

UK 21.41 22.51 23.23 27.92 25.07 21.20

Italy 47.36 52.63 58.64 70.13 64.96 56.60

France 22.79 23.43 27.10 42.28 55.53 55.67

Spain 60.21 42.95 47.69 48.47 51.08 43.91

Netherlands 8.95 10.83 11.25 15.72 16.87 16.30

Australia 1.37 1.18 1.91 3.60 5.64 4.48

Denmark 10.15 11.34 12.35 23.86 19.74 18.57

Canada 10.06 8.51 8.94 7.86 8.64 6.38

Switzerland 3.18 2.74 2.41 3.92 4.08 3.29

Sweden 5.74 7.04 8.62 7.96 6.46 6.34

Austria 2.45 2.40 2.55 4.30 4.63 3.68

Belgium 6.06 5.16 5.13 7.45 8.46 8.18

Portugal 5.91 3.32 3.93 4.19 3.64 2.55

UAE 1.03 1.91 5.33 4.13 4.33 4.15

Source: DGCI& S

Major brands like Pierre Cardin, Tommy Hilfiger, Versace, DKNY, Hugo boss, Liz Claiborne, Ann Taylor, Nautica, Kenneth Cole, Charter Club, Daniel Hector source Leather Garments from India. With modern technology with state-of-the-art machinery installed in the production units, India is come to be recognized as a major producer of quality leather garments in the globe. Leather Garments industrys accelerated development and growth is being aided by the capacity

expansion and modernization efforts of the private industry and the Government of Indias encouraging policy measures.

3. FINISHED LEATHER

Finished Leather A Status Note

Global Scenario:

The global import of finished leather declined from US$ 19888.97 million in 2005 to US$ 14429.45 million in 2009. Indias share has increased from 3.20% to 4.34% during

the said period.

A Statement showing global import of finished leather, Indias export and share 2005-2009

(In Million US$)

DETAILS 2005 2006 2007 2008 2009

Leather

WORLD IMPORT 19888.97 21747.07 23245.73 21660.96 14429.45

INDIA'S EXPORT 636.27 724.00 807.19 673.37 627.95

% SHARE OF INDIA 3.20% 3.33% 3.47% 3.11% 4.35%

Source: ITC, Geneva & DGCI & S, Kolkata

Major Importing countries of Finished Leather 6 years

(Value in Million US$)

Countries 2004 2005 2006 2007 2008 2009

China 3353.19 3502.81 4129.53 4344.26 3791.79 3021.79

Hong Kong 3300.47 3377.99 3665.32 3342.86 2665.35 2032.62

Italy 2178.28 2172.33 2616.61 3039.53 2659.09 1538.25

Germany 637.95 735.95 808.36 855.49 858.67 637.83

Romania 733.59 775.95 813.66 843.52 784.46 598.46

USA 843.38 859.28 823.21 791.75 670.14 444.60

Spain 593.96 539.60 568.01 677.37 652.14 407.84

Poland 514.80 493.74 538.36 586.46 531.28 341.53

Mexico 878.11 781.36 687.51 591.02 527.59 301.56

France 426.11 388.48 385.35 458.95 476.48 359.53

Portugal 386.89 337.78 339.03 426.77 422.97 290.50

Korea Rep 458.62 434.10 471.81 500.07 374.18 296.27

Thailand 302.76 333.34 332.69 368.63 340.34 247.57

Austria 206.57 182.15 226.40 280.86 298.24 215.55

Venezuela 10.17 13.00 16.22 54.36 295.88 73.57

Indonesia 87.50 63.62 69.12 77.50 291.77 190.53

Taiwan 270.62 252.29 242.63 255.15 284.44 161.47

Turkey 178.77 180.27 229.81 282.38 282.83 173.80

Tunisia 149.25 149.33 187.96 253.74 282.79 225.53

Hungary 263.44 238.08 248.99 280.24 275.64 201.07

Source: ITC, Geneva

Major Exporting countries of Finished Leather 6 years

(Value in Million US$)

Countries 2004 2005 2006 2007 2008 2009

Italy 4225.46 4089.38 4595.82 5176.50 4872.87 3641.25

Hong Kong 2740.67 2822.77 3040.03 2772.82 2101.85 1636.66

Brazil 1290.78 1395.82 1875.32 2192.27 1877.64 1159.04

USA 1193.60 1107.00 1043.02 1144.04 911.31 563.58

Argentina 812.50 811.11 883.10 963.72 894.51 651.84

Germany 816.77 713.09 836.30 951.51 892.57 587.93

Korea Rep 987.46 861.46 833.33 853.88 849.56 683.46

Taiwan 763.72 778.80 770.66 810.67 816.12 611.87

Nigeria NA NA 78.26 330.26 680.17 512.49

Austria 322.08 310.86 335.94 527.10 610.17 406.35

Spain 394.79 383.03 425.53 483.27 565.47 392.18

Kazakhstan 121.44 245.41 228.39 345.62 448.87 315.43

Thailand 333.42 336.05 334.11 426.18 433.15 328.14

China 1399.78 1563.51 1755.95 1175.24 397.02 238.19

Pakistan 285.33 306.69 317.71 391.63 383.11 270.16

Colombia 91.58 80.35 103.97 216.28 367.66 117.72

France 337.60 300.32 297.36 360.50 366.66 275.94

Ukraine 114.78 125.06 253.85 331.85 301.11 141.29

Australia 326.69 295.05 305.64 306.74 264.15 189.65

Uruguay 234.08 243.94 296.54 298.18 249.28 163.05

Source: ITC, Geneva

Indian Scenario:

India has amongst the largest livestock population in the world, providing a strong raw material base in goat, buffalo, cow and sheep leather. In terms of raw material availability in pieces, India is endowed with 12.55% of Bovine hides & skins, 12.29% of goat and kid skins, and 3.48% of Sheep and Lamb skins in the world.

The range of finished leathers include classic finishes (polish, glazed, aniline, patent), matt surfaces (suedes, nubuck), nappa, burnished & oily leathers, crackled & distressed finishes etc

Amongst the major producers of finished leather in the world, the Indian Leather Industry has a long tradition of supplying high quality leather for the global market. Indian tanning industry produces over 2 billion square feet of leather per annum. The Industry has the tanning capacity to fulfill 10% of global leather requirements. Major tanning clusters in the country are Chennai, Ambur, Ranipet, Kolkata, Kanpur, Jalandhar etc. There are approximately 2091 tanneries in the country 45% in Tamil Nadu, 26% in West Bengal, 18% in Uttar Pradesh.

Livestock and Production Details: - INDIA

2005 2006 2007 2008 2009

Number of Bovine animals (million heads)

279.71 277.51 275.29 273.11 270.10

Number of Sheep and Lambs (million heads)

62.85 63.55 64.27 64.99 65.33

Number of Goat and kids (million heads)

124.90 125.18 125.45 125.73 126.39

Production of Bovine hides and skins (million pcs)

27.7 23.4 23.3 24.4 25.7

Production of sheepskins and lambskins (million pcs)

31.5 31.9 32.2 32.6 32.8

Production of Goatskins and Kidskins (million pcs)

72.0 72.0 72.2 72.3 72.8

Production of Light Leather from Bovine animals (mn. Sq.ft)

650.4 647.2 632.4 648.8 NA

Production of Light Leather from Sheep and Goats (million sq.ft)

610.7 652.5 665.0 655.0 NA

Source: FAO Statistics 2010

A Statement showing Indias export of finished leather 5 years

(Value in Million US$)

2006-07 2007-08 2008-09 2009-10 2010-11

724.00 807.19 673.37 627.95 810.92

Source: DGCI& S

Indias export of finished leather touched US$ 810.92 million in 2010-11, holding a share of 21.09% in Indias total export of US$ 3844.86 mn.

Indias Export of Finished Leather Major markets 5 years

Major markets for Indian Finished Leather are Germany with a share of 3.52%, Italy 12.00%, Hong Kong 37.55%, Spain 2.99%, China 7.34% and Korea Rep 4.42%

(Value in Million US$)

Countries 2006-07 2007-08 2008-09 2009-10 2010-11

Germany 26.16 34.60 26.77 22.02 23.28

USA 10.71 9.20 7.64 7.70 8.75

UK 2.69 2.87 3.42 2.69 3.25

Italy 121.00 140.44 99.40 75.15 121.88

France 12.07 10.11 6.28 8.71 9.45

Hong Kong 271.62 268.84 219.80 236.28 290.90

Spain 22.02 28.22 23.46 18.75 23.51

Netherlands 6.22 8.43 8.82 11.56 14.23

South Africa 16.63 13.27 9.29 8.52 12.78

Portugal 8.76 12.85 12.34 9.71 7.91

China 38.86 51.77 45.79 45.97 66.31

Indonesia 9.57 14.54 12.75 9.68 17.98

Korea Rep 34.73 28.35 23.49 27.65 27.19

Russia 12.31 9.77 6.95 3.35 9.13

Source: DGCI& S

Conclusion:

Strong infrastructures are in place for the leather tanning in the country. Eco-sustainable tanning processes are being followed in the tanning industry. The tanning industry is well supported by the presence of chemicals and auxiliaries industry. In the MODEUROP Congress, colours presented by the India are selected continuously, which reinforces the quality of Indias leather processing techniques. Indian finished leather finds the pride of place in the global fashion markets.

4. LEATHER GOODS

Leather Goods & Accessories

Global Scenario:

The global import of Leather Goods & Accessories increased from US$ 12281.41 million in 2005 to US$ 14315.60 million in 2009, growing at a CAGR of 3.90%. India presently accounts for a share of 5.29% in the global leather goods import trade.

A Statement showing global import of Leather Goods & Accessories, Indias export and share 2005-2009 (Value in Million US$)

DETAILS 2005 2006 2007 2008 2009

Leather Goods (Including

Gloves)

WORLD IMPORT 12281.41 13809.04 16438.80 18091.51 14315.60

INDIA'S EXPORT 660.17 706.29 800.47 873.45 757.02

% SHARE OF INDIA 5.38% 5.11% 4.87% 4.83% 5.29%

Source: ITC, Geneva & DGCI & S, Kolkata

Major Importing countries of Leather Goods & Accessories 5 years

(Value in Million US$)

Countries 2005 2006 2007 2008 2009

USA 2930.73 3262.84 3442.41 3461.48 2720.58

Hong Kong 1330.60 1493.35 1748.82 1973.12 1650.64

Japan 1405.13 1570.15 1764.83 1891.05 1578.61

France 706.91 817.29 1105.43 1263.58 989.92

Germany 647.81 717.48 855.10 947.54 793.11

UK 685.56 743.65 949.24 1015.37 752.76

Italy 537.21 705.78 893.25 967.33 744.89

Korea Rep 151.41 203.70 302.43 400.67 370.61

Switzerland 240.06 279.29 379.03 416.02 335.72

China 120.79 171.03 234.65 311.70 309.29

Singapore 226.41 258.95 276.47 321.58 304.23

Spain 249.90 303.92 377.22 408.73 298.00

Canada 286.05 291.53 334.56 381.28 284.38

Belgium 187.66 197.58 235.82 274.07 229.81

Australia 154.79 154.48 185.30 225.67 210.99

Netherlands 148.45 172.85 202.33 232.83 207.69

Mexico 432.36 336.23 221.03 238.08 163.78

Source: ITC, Geneva

Major Exporting countries of Leather Goods & Accessories 5 Years

(Value in Million US$)

Countries 2005 2006 2007 2008 2009

China 2641.45 3102.04 3407.65 3808.22 3160.63

Italy 2182.86 2708.19 3358.86 3712.12 2678.69

France 2059.14 2313.18 2585.48 2500.02 2144.00

Hong Kong 1710.02 1821.62 2033.47 2165.01 1802.05

Germany 320.05 401.73 500.41 577.37 477.61

USA 447.49 467.81 348.70 379.39 333.26

Singapore 89.05 96.48 121.89 277.71 288.39

Switzerland 186.89 223.94 290.59 329.32 245.05

Spain 253.56 232.72 297.37 294.73 232.37

Pakistan 266.77 238.82 232.79 279.90 213.88

UK 191.71 213.44 257.05 238.70 183.13

Thailand 169.22 178.91 169.01 184.84 172.60

Netherlands 108.50 123.72 152.88 162.14 140.88

Mexico 146.32 178.32 213.21 208.07 138.55

Hungary 113.05 139.21 180.01 183.50 133.93

Turkey 102.27 124.60 147.37 160.31 129.66

Indonesia 90.89 110.54 124.18 125.68 125.18

Belgium 84.44 103.76 115.39 141.08 117.01

Source: ITC, Geneva

Indian Scenario

Leather Goods form an important segment of the leather industry in India. Leather goods production capacity is estimated to be 63 million pieces annually.

The different types of Leather Goods and accessories are manufactured in India i.e., Trunks, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, traveling bags / luggage, Portfolio and similar such items, Hand Bags, shopping bags and similar such items, Wallets, Purses, Pouches, Passport Holders, Credit Card Holders, Diary covers and similar such items, Leather Belts, Caps etc. India also produces Leather Upholstery Sofa Seat Covers, Car Seat Covers etc.

Most of the units manufacturing leather goods are located in Kolkata, Chennai, Mumbai, Kanpur, Bangalore and Puducherry. Industry is situated in few other clusters also.

India is the fifth largest exporter of leather goods and accessories (inclusive of Gloves) in the world.

Leather Goods and accessories manufactured in India bear brand names like Coach, Pierre Cardin, Yves St Laurent, Etienne Aigner, Geoffery Beene, Harrods, Marks & Spencer, Liz Caliborne, Guess, Next, Tommy Hilfiger, Kieffer, Waldhausen, Biemen, Nederinum, Zaldi, Kallquists, Shires, GFS, Millers, Eisers, Weco, Ukal and Decalthon.

Leather Gloves:

Leather gloves of all categories like fancy/fashion gloves, sports gloves, industrial gloves and other leather gloves is a thrust product among the items of small leather goods being manufactured and exported from India. India is the fourth largest exporter of Leather Gloves to the world.

India produces about 52 million pairs of industrial gloves annually. India offers the world the largest technically trained manpower in leather craft at the most competitive costs. Its association with respected product testing institutions such as SATRA in the UK and PFI in Germany ensures the finest quality leather in the manufacturing of gloves.

Indias Export of Leather Goods & Accessories including Gloves 5 years

(Value in Million US$)

2006-07 2007-08 2008-09 2009-10 2010-11

706.28 800.46 873.44 757.02 814.91

Source: DGCI& S

Indias export of Leather Goods & Accessories including Gloves touched US$ 814.91 million in 2010-11, holding a share of 21.19% in Indias total export of US$ 3844.86 mn.

Major Markets

The major markets for Indian leather goods are USA with a share of 18.97%, Germany 15.59%, UK 15.63%, Spain 7.51%, France 5.64%, Netherlands 4.76%, Australia 3.09% and Denmark 2.21%

Indias Export of Leather Goods & Accessories Country-wise 5 Years

(Value in Million US$)

Countries 2006-07 2007-08 2008-09 2009-10 2010-11

Germany 100.14 122.65 132.08 117.75 127.08

USA 128.12 123.86 155.02 137.97 154.55

UK 113.91 133.92 125.77 123.08 127.39

Italy 50.76 56.96 67.51 44.82 44.78

France 31.54 36.07 45.04 38.90 45.94

Hong Kong 3.06 3.37 4.22 5.77 8.01

Spain 53.18 59.93 52.33 51.47 61.21

Russia 0.89 1.02 1.01 0.57 0.76

Netherlands 31.81 36.51 41.91 38.12 38.79

Australia 21.79 28.48 32.72 26.00 25.20

New Zealand 1.41 2.25 2.02 1.56 2.19

Denmark 13.83 15.20 17.02 16.16 17.98

Belgium 11.72 13.94 14.88 12.34 13.82

UAE 22.06 26.16 34.97 21.63 21.04

Source: DGCI& S

With the availability of quality raw materials coupled with skilled craftsmanship, India is now poised to make itself a major destination for global sourcing of leather goods and accessories. State-of-the-art production units and in-house Design Studios

will strengthen the industry in producing products with exquisite design and quality.

The industrys accelerated development and growth is being aided by the

ambitious capacity expansion & modernization plans of private industry and

the Indian Governments encouraging policy measures.

6. LEATHER GOODS

Saddlery & Harness A Status Note

Global Scenario:

The global import of Saddlery & Harness increased from US$ 828.58 million in 2005 to US$ 988.17 million in 2009, growing at a CAGR of 4.50%. Indias share in global

import of saddlery & harness was 8.44% in 2009.

(Value in Million US$)

2005 2006 2007 2008 2009

Saddlery & Harness

WORLD IMPORT 828.58 919.22 1100.46 1141.43 988.17

INDIA'S EXPORT 77.52 82.33 106.18 92.15 83.39

% SHARE OF INDIA 9.36% 8.96% 9.65% 8.07% 8.44%

Source: ITC, Geneva & DGCI &S, Kolkata

Major Importing countries of Saddlery & Harness 6 years

(Value in Million US$)

Countries 2004 2005 2006 2007 2008 2009

USA 235.94 289.34 338.51 375.22 372.25 312.17

Germany 67.02 77.83 79.49 102.77 110.24 100.00

France 41.80 53.47 55.24 75.64 73.89 66.91

UK 55.86 63.25 62.04 77.86 75.50 62.74

Canada 29.41 35.51 41.31 46.95 50.49 46.32

Japan 38.05 37.86 44.30 43.90 47.57 45.32

Sweden 25.19 25.05 27.34 38.60 37.89 27.87

Italy 18.94 21.67 25.36 34.85 35.79 29.80

Netherlands 20.02 20.18 21.93 28.94 34.66 31.16

Belgium 19.12 22.60 19.41 25.45 30.59 26.47

Australia 20.95 22.37 26.12 30.39 29.50 30.55

Switzerland 19.92 19.75 19.81 22.74 25.57 22.07

Spain 14.56 15.49 19.63 24.84 24.92 22.21

Denmark 12.81 14.68 17.58 21.88 21.63 14.65

Finland 8.79 10.93 13.31 15.09 20.35 17.12

Source: ITC, Geneva

Major Exporting countries of Saddlery & Harness 6 years

(Value in Million US$)

Countries 2004 2005 2006 2007 2008 2009

China 157.68 180.13 209.79 231.63 209.88 198.22

Germany 80.85 95.40 110.92 131.05 132.40 122.79

USA 34.12 37.46 43.56 51.09 54.60 49.58

France 25.76 27.75 35.54 42.55 51.05 42.37

Italy 30.62 30.52 33.33 43.51 51.44 41.46

UK 43.56 43.68 41.66 49.57 44.47 34.11

Taiwan 32.81 34.81 33.57 35.63 36.99 33.51

Ireland 17.07 20.08 21.15 22.87 24.40 21.12

Hong Kong 19.66 22.12 30.87 25.24 23.00 26.14

Sweden 7.77 10.59 12.41 16.49 18.22 15.29

Belgium 11.44 13.60 10.37 13.10 16.69 16.82

Argentina 9.83 11.89 14.04 16.88 15.62 13.08

Netherlands 6.84 7.18 11.06 14.16 15.22 16.70

Source: ITC, Geneva

Indian Scenario:

Harness & Saddlery goods are being manufactured in Kanpur for more than last 100 years. The Saddlery manufacturing started in the 19th century at the British Indian Corporation in its Copper Alan branch in Kanpur and simultaneously the British Government started the Ordinance Equipment Factory at Kanpur to cater to the needs of the Army. The craft of making saddlery was imparted to the local artisans by the master saddlers brought from the UK, whose generations now formed the workforce of the present industry. Kanpur, a city in Northern India, is a short flight from the countrys capital-New Delhi

By virtue of Kanpurs specialization in vegetable tanned buffalo hides, and due to

the presence of trained manpower, this has become the most important centre for manufacture of saddlery goods in India. In fact, Kanpur is the only centre in India

which produces the harness & saddlery goods. Almost all the units operating in Kanpur are 100% export-oriented.

Indian Saddlery and Harness industry is now becoming globally competitive and brand dominated, awash with designs. India is positioned as the third largest exporter of Saddlery & Harness to the world, accounting for a share of 8.44% in the global saddlery import of US$ 988.17 million.

Indian Saddlery and Harness products are gaining an ever-increasing recognition in the highly competitive global saddlery & harness leather arena. Estimated production capacity of the Saddlery & Harness industry in India is 12.50 million pieces per annum. Technology, work craftsmanship, product quality are the hallmarks of the Indian Saddlery & Harness industry.

o The major production clusters for Saddlery & Harness are Kanpur, Delhi etc

o The different categories of Saddlery & Harness exported from India are Saddles / Bridles, Harness and Other Saddlery items

A Statement showing Indias export of Saddlery & Harness 5 years

(Value in Million US$)

2006-07 2007-08 2008-09 2009-10 2010-11

82.33 106.18 92.15 83.39 86.15

Source: DGCI& S

During 2010-11, Indias export of Saddlery & Harness was US$ 86.15 million, and this accounted for a share of 2.24% in Indias total export from leather

sector (US$ 3844.86 mn).

Major Markets:

The major markets of Indian Saddlery & Harness are Germany with a share of 20.84%, USA 13.00%, UK 9.93%, Italy 4.28%, France 7.14%, Spain 2.74%, Netherlands 6.29%, Australia 6.79%, Denmark 3.36%, Canada 2.88%, Sweden 6.30%, Belgium 7.06%, Finland 1.48%

(Value in Million US$)

Countries 2006-07 2007-08 2008-09 2009-10 2010-11

Germany 13.15 19.87 19.67 18.02 17.95

USA 14.89 13.47 11.31 10.06 11.20

UK 12.54 16.25 9.08 9.31 8.55

Italy 2.84 4.91 3.43 3.62 3.69

France 7.18 9.22 8.54 7.58 6.15

Spain 3.07 3.54 3.07 1.88 2.36

Netherlands 3.39 5.64 6.12 5.42 5.42

Australia 4.20 5.30 4.48 5.37 5.85

Denmark 1.99 3.27 3.13 2.51 2.89

Canada 1.82 2.08 2.45 2.31 2.48

Sweden 4.71 6.37 5.93 5.00 5.43

Belgium 2.38 4.51 4.67 4.15 6.08

Finland 1.05 1.94 1.91 1.03 1.27

New Zealand 0.69 1.50 1.05 1.23 1.11

Source: DGCI& S