Indian Leather Industry has been one of the country’s oldest and largest industries, contributing significantly to the country’s economy. The Indian leather Industry is valued at $17 billion and employs over 4 million People. It accounts for 12.9% of the world’s leather production and is the third largest exporter of leather and leather products globally after China and Italy.
The industry comprises various segments such as tanned and finished leather, footwear, leather garments and goods, and accessories among others. The Indian leather industry’s main export destinations are the USA, Germany, UK, Italy and France.
H Abdur Raqeeb is from Aafaq Leathers, which is a known tanner and exporter of leather garments to Europe and received awards from the Ministry of Commerce for exports. He is a known leather technologist who worked in renowned leather tanneries before he embarked in his own tanneries and exports of finished leathers and leather garments and has written many articles on leather industry and manufacture of finished leathers. Presently he is striving to introduce interest-free finance and banking as well as a Collective system of Zakat for a sharing and caring society, thereby fulfilling the Sustainable Development Goals of the UN.
On some of the challenges faced by leather industry, Raqeeb outlined a few areas like:
- Competition: The leather manufacturing industry is highly competitive with many players vying for a share of the market. This makes it challenging for manufacturers to differentiate themselves to stand out from the crowd. Another challenge is availability of too many alternatives to leather like synthetic, Pu leather of cheaper price and that can be utilised 100%.Again there is heavy competition of export from third-world countries.
- Cost Pressure: Manufacturing of leathers can be expensive and manufacturers need to keep their costs under control to remain profitable. This can be challenging, particularly in the face of increasing raw material cost, special chemicals and auxiliaries to be imported, labour cost, and other expenses.
- Regulatory Compliance: The leather manufacturing industry is subject to a range of regulations and standards which manufacturers must comply with to ensure the safety and quality of their products. This can be challenging, particularly for small manufacturers who may not have the resources to comply with all the requirements. For example, LWG (leather working group) certification.
- Environmental Concerns: Leader manufacturing can have a significant environmental impact, particularly in terms of energy consumption and waste generation. Manufacturers need to take steps to minimise the environmental footprint and comply with the relevant requirements which are costly and challenging. Effluent treatment and discharge water and solid waste are the constraints particularly small tanners with the individual small treatment plants are facing.
On the prospects, he said, “On the other hand Indian leather industry has several strengths as well, such as the availability of raw materials and a large domestic market. India has also a large population with a growing middle class, which is driving demand for leather garments and leather footwear. The government has taken several initiatives to support the leather industry such as establishment of The Indian Leather Development Program and The Leather Sector Skill Council. These initiatives aim to improve the quality of leather products, increase exports and provide training to the workforce. The government has also notified import duty concession and exemption for import of leather into India.”
On the way forward, Raqeeb said, “At the current scenario, the leather industry in India has a vast scope and massive base for its products. Moreover, the worldwide leather industries are changing theirmanufacturing base from the developed to the developing nation at the same time. Still, there are numerous challenges in the leather industry in India as well which the industry has to face in coming years.”