CURRENT ACTIVITIES IN CHENNAI LEATHER MARKET
V.M. KHALEELUR RAHMAN
There is good demand for tanned and crust goat skins particularly in grain, suede and lining grades in the local market. Shoe, garment and leather exporters are here covering their requirements. There is increased demand for wetblue cow hides also by shoe manufacturers. Prices have also registered about 10 to 15% rise. Even prices of raw hides and skins have gone up in many raw centres. Shoe factories are also engaged as ever in importing hides and skins from different countries for their requirements as higher grades are not available in the domestic market to the extent of their needs.
There is demand for finished leathers by overseas buyers but activities are somewhat restricted as they are not able to pay the asking prices of tanners and exporters here which are around the following prices:
S/C goat upper leather
Size : 3/5 sq.ft., Selection : A/B/C 20/40/40%, Price : US$ 1.80, Selection : D, Price : US$ 1.50, Selection : E Price : US$1.40
S/C goat lining leather
Size : 3/5 or 4/7 sq.ft., Selection : TR-1 Price : US$1.20, Selection : TR-2 Price : US$ 1.10 and Selection : TR-3 Price : US$1.00
Some tanners quote selection TR-1/2/3 combined at US$1.10 combined.
F/C goat suede leather for garment
Size : 4/7 sq.ft. Selection : ABC, Price : US$1.70
All prices are per sq.ft. C&F by sea and 10 Cents more for AIR delivery.
One feels that the above prices are most reasonable in the present time when prices of raw hides and skins, chemicals, labour charges etc. have shot up considerably.
CLRI to create fuel from tannery waste
It is reported that the Central Leather Research Institute (CLRI) researchers are to create fuel using tannery and slaughter house waste. They are thinking of setting up plants in Chennai and Ranipet to convert the waste into hydrogen and the hydrogen is then turned into fuel cells that can be used for running vehicles. When it comes into effect, it will be considered a big achievement of the Institute which has been playing a vital role in making the leather industry more and more progressive on scientific norms.
‘AISHTMA’ delegation to Syria and Iran pontponed
It is now learnt that the planned visit of a delegation of All India Skin & Hide Tanners and Merchants Association (AISHTMA) to Syria and Iran was postponed without mentioning a date.
EXPO RIVA SCHUH, ITALY : A GREAT SHOW OF SHOE MANUFACTURERS
Indian shoe sector plays an important role in the leather and leather products industry. According to the Council for Leather Exports, India is the second largest global producer of footwear after China on the basis of its production being 13% of global footwear production of 16 billion pairs. It is well known that the government of India has adopted a progressive policy and has been encouraging the leather products sector since about 25 years.
Indian footwear sector is de-licensed and the government is also establishing footwear complexes and footwear components parks in the shoe manufacturing clusters. There is no doubt that the Indian shoe industry has made a tremendous progress and earned a high reputation in Indian and overseas markets for its quality and reliability. Its share of export is US$1533.66 million or about Rs.7,500 crore i.e. about 42.62% of the total export of leather and leather products during 2008-09. This is the reason why many shoe companies in countries like Italy, Spain and Portugal have entered into collaborations with their counterparts in India. Even the U.S. Retail giant Wal-Mart has started sourcing footwear from India since the last two years.
Indian shoe companies have been making all varieties of footwear like Dress Shoes, Moccasins, Casuals, Sports Shoes, Boots, Sandals, chappals etc. for the leading brands in the world. Indian leather industry envisages an export target of US$3.37 billion or about Rs.16,000 crore for export of footwear by 2013-14.
In Tamil Nadu and some other states in the country more and more shoe units are being established making the leather and leather products industry a vital one in providing employment opportunities and earning foreign exchange for the country. Many shoe units have also come up in many places like Ambur for doing job works and are in good demand. Big shoe factories are interested in giving job works to such units for mutual benefits.
Only a very few Indian shoe manufacturers have entered the domestic retail market. It is learnt that some are thinking of opening their show rooms in big cities in our country, to start with. There is good market for footwear in the country.
The falling exchange rate of Euro is a big problem for exporters. Nobel laureate Mr. Joseph Stiglitz who was the World Bank’s chief economist has said recently that “The Euro will survive but it will probably be patchwork by patchwork, coming up with whatever is judged as the minimum amount required at the moment. That’s a real concern; global financial markets may be plagued by volatility for years to come”.
Many experienced exporters feel that the Indian leather industry has to see things in the proper perspective and move forward cautiously getting as much stimulus as possible from the government shunning their vested interest and burying their hatchet to safeguard the age old and highly potential leather industry and our national interests.
The Council for Leather Export is participating in the International Shoe Fair, 74th edition of EXPO RIVA SCHUH to be held from 12th to 15th June 2010 at Riva del Garda in Italy. As it is an important event, according to the Council sources, 57 leading Indian shoe manufacturers and exporters will participate and display their latest products for Spring-Summer 2011 in the pavilion organized by the CLE.
In spite of the year old world recession, the Indian shoe industry is on the move with its best efforts.
(Indian Leather, June 2010)
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