India: leather cluster model to be extended across TN

24/10/2011

The initiatives introduced for development of micro, small and medium enterprises (MSMEs) in the leather sector in Chennai, India, will be extended to other leather clusters across Tamil Nadu, Dr. Dinesh Awasthi, director of the Entrepreneurship Development Institute of India (EDI), Ahmedabad, has said.

 

Speaking at an event held to demonstrate the success model, developed by the EDI, Dr. Awasthi said the model helped the small units in the cluster to upgrade their technology, boost efficiency and attain economies of scale.

 

Chennai’s leather industry has more than 200 tanneries and 300 leather item manufacturing units, with the majority of them being export-oriented. Factors like cost-cutting and using technology infusion for improving efficiency have significantly contributed in the development of these enterprises.

 

The leather cluster model introduced measures such as enhancing energy-efficiency, technology upgrades to improve capacities, international certifications and skill development.

 

Representatives of the leather industry have shown interest in introducing this model in other leather clusters like Vaniyambadi, Ambur and Ranipet. It is intended to bring all the 550 tanners in the State of Tamil Nadu within the ambit of this programme.