Leather Sector Aims To Hit $6B Exports With 20% Growth

08-Oct-2013

The leather industry has expressed strong optimism over achieving a high double digit growth in exports this year and is aiming for total leather exports of $6 billion on the back of revival in Europe, stronger growth outlook in US and exporters’ penetration into more markets.



“The present financial year has been a good one. According to latest data, the export of leather and leather products during April–August period has reached $2,370.69 million, against $2,103.12 million during the same period last year, registering a growth of 12.72 per cent in dollar terms,” according to Rajendra K Jalan, chairman, Council for Leather Exports (CLE).



“Revival of European market, projected export growth of 18-20 per cent in US market and greater penetration in markets like Russia, Japan, South Africa, UAE and even China have given us hopes of registering an export growth of 20 per cent in FY14 and thereby achieving the export target of $6 billion,” he added.



After achieving a significant export growth of about 23 per cent at $4,868.71 million in 2011-12, Indian leather industry was hopeful of reaching $6 billion exports in 2012-13. However, the persistent crisis in the major markets of European Union led to a fall in exports for the first 10 months of 2012-13. Nevertheless, exports recovered in the last two months of 2012-13 and ended the year 2012-13 with total exports of $4.99 billion, recording a marginal growth of 2.53 per cent.



European Union, a major export destination for Indian leather industry occupying a share of 70 per cent in total exports, is passing through recession and hence the industry has been looking for the new avenues to enhance exports.



“The US market is on the up-swing. Our export of leather and leather products to USA during the first quarter has shown a significant growth of 14.47 per cent, compared with the year-ago period. As USA is the largest importer of leather and leather products in the world and our share in this important market is less than 1.4 per cent, it is necessary to undertake aggressive marketing efforts in this country to promote India’s brand image and enhance market share in the long run,” said R Ramesh Kumar, executive director, CLE.



China is the largest supplier of leather and leather products to the US, accounting a share of 72.21 per cent of USA’s total leather import trade. This is followed by Vietnam’s 6.77 per cent, Italy with 5.72 per cent, Indonesia’s 2.74 per cent, Brazil’s 1.73 per cent. India is the 7th largest supplier to USA accounting for a share of 1.31 per cent in the USA’s total leather import trade.



However, CLE pointed out that Indian leather industry needs to achieve considerable progress in key areas like capacity modernisation and augmentation, product and market diversification, infrastructure development, enhancing raw material availability and human resources development so as to achieve equitable and sustainable growth of the leather industry, both on the export and domestic fronts.

Source:- mydigitalfc.com