Leather sector to clock $27 bn turnover in 5 yrs

Industry reported annual growth rate of around 14.77% in the last 5 years

The Indian leather industry is expected to clock $27 billion turnover in the next five years, up from the present $12 billion.

Speaking to reporters on the sidelines of three-day India International Leather Fair, JS Deepak, additional secretary in the department of commerce, and M Rafeeque Ahmed, chairman of Council for Leather Exports (CLE), said the exports would constitute a major share at $15 billion in the overall target.

Exports presently constitute $5.91 billion in the total leather industry turnover. The industry has recorded a cumulative annual growth rate of 14.77 per cent in the last five years.

In rupee terms, exports reached Rs 26,900 crore in April-November 2014 against Rs 22,700 crore a year ago, an increase of 18.53 per cent.

Major export markets continued to be Germany with a share of 12.39 per cent, UK at 11.6 per cent  and the US 11.50 per cent.

According to Deepak, one of the major issues affecting the industry include meeting the environmental norms, which requires greater investment in effluent treatment. The industry was notified as a focus sector in the Make in India programme.

He said the industry requires around Rs 1,500 crore to set up treatment capacities to support industry’s plan to double the tanning capacity to around 5-6 billion sft.

He said the Centre was looking at ways and means to support the industry to set up effluent plants, and added it would soon come out with concrete measures on it, he said.

Meanwhile, the leather products fair saw an occupancy of 10,000 sq metres of space as against 9,300 sqm last year. Total companies participating increased to 440, including 142 foreign firms from 23 countries, when compared with 385 last year. Participation of international firms increased  around 50 per cent this year.