leather and footwear

8/7/2019 LEATHER AND FOOTWEAR

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LEATHER AND FOOTWEAR


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INTRODUCTION

y The leather industry occupies a place of prominence in the Indian economy in

view of its massive potential for employment, growth and exports.

y The exports of leather and leather products gained momentum during the past

two decades.y Indian leather industry today has attained well merited recognition in

international markets besides occupying a

prominent place among the top seven foreign exchange earners of the country.

y

The leather industry has undergone a dramatic transformation from a mereexporter of raw materials in the sixties to that of value added finished products

in the nineties.


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INDIAN LEATHERINDUSTRY

y Items produced by this sector include bags, handbags, hand gloves

industrial gloves, wallets, ruck sacks, folios, brief cases, travel ware,

belts, sports goods, upholstery and saddlery goods.

y Modern units in Chennai, Kanpur and Kolkata meet the requirement of bulkbuyers and consumers in Europe, USA and Australia. The major market for

Indian leather goods is Germany.


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SWOT ANALYSIS

Strengths

Sufficient productive capacity in tanning.Availability of low cost of labour.ExposureQuality and environment conscious.Qualified leather technologists in the field.

Availability of raw materials and other inputs.Exporter-friendly government policies.Tax incentives on machinery by Government.

WEAKNESSES

Low level of modernisation and upgradation of technology.Low level of labour productivity due to inadequate formaltraining.Less number of organised product manufacturers.Highly unhygienic environment.

Unawareness of international standards by many playersDifficulties in access to testing, designing and technicalservices.

OPPORTUNITIES

Abundant scope to supply finished leather tomultinationals setting up shop in India.Growing fashion consciousness globally.

Use of information technology and decision supportsoftware to help eliminate the length of the productioncycleThere is lot of scope for diversification into otherproducts, namely, leather garments, goods etc.Growing international and domestic markets.

THREATS

Entry of multinationals in domestic market.Stiff competition from other countries.

Developing countries are resorting to more and more non tariff barriers indirectly.Fast changing fashion trends are difficult to adaptLimited scope for mobilising funds through privateplacements and public issues, as many businesses arefamily-owned.


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STRUCTURE OF THE INDUSTRY

y Major production centres for leather and leather products are located atChennai, Ambur, Ranipet, Vaniyambadi, Trichi, Dindigul in TamilNadu, Calcutta inWest Bengal, Kanpur in Uttar Pradesh, Jalandhar in Punjab, Bangalore inKarnataka, Delhi and Hyderabad in Andhra Pradesh.

y Footwear Components

Shoes: 100 million pairsLeather shoe uppers: 78 million pairsNon-leather shoes/chappals etc.: 125 million pairs

Leather Garments: 6 million piecesLeather Products: 70 million piecesIndustrial Gloves: 40 million pairs

Saddlery : 6000 pieces


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IMPORTANT STAGES

y Warehouse and Sorting

y Soaking

y De Fleshing

y Liming

y Bating, pickling, tanning

y Sammingy Splitting

y Skiving

y Sorting

y Neutralising, filling out, dyeing and greasing

y

Dryingy Staking

y Finishing

y Quality control

y Despatch


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USAGE OF IT AND MARKETING IN THE SUPPLY CHAIN


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LITERATURE SURVEY

y Changes after globalization

y Employment opportunities provided by the leather industry

y Exports trends

y Foreign exchange earner


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INDIAN LEATHER EXPORTERS

y Tata International Ltd.

y Florind Shoes Ltd.

y Punihani International

y Farida Shoes Ltd.y Mirza Tanners Ltd.

y T. Abdul Wahid & Company

y Hindustan Lever Ltd.

y Super House Leather Lt d.

y R SL Industries Ltd.

y Presidency Kid Leather Ltd.


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By

Abhishek Das (10MBA0059)

Arun S (10MBA0171)

Armugam (10MBA0120)Sabarish (10MBA0098)

Arun S (09MBA007)

Khushboo P Shah (10MBA0023)

Goutham (07MBI0102)Tamizhelakiya (10MBA0164)

leather and footwear

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