India potentially a centre for Brazilian leather exports
India has emerged as a potential buyer of Brazilian leather and shoe components. In June 2002 a marketing consultant appointed by the Brazilian embassy in India, Mr. Ravi Chaudhry, arrived in Novo Hamburgo. He met with ASSINTECAL (Brazilian Association of Leather and Footwear Component Manufacturers), APEX (Export Promotion Agency) and SEBRAE/RS – (Support Service to Small Companies in the State of Rio Grande do Sul).
Mr. Chaudhry had been requested by the Brazilian Embassy to research the potential of the Indian market for Brazilian leather and shoe components. India is the second largest footwear manufacturer in the world and seen as facilitating a route to other Asian markets. Mr Chaudhry stressed that all sales should require payment by letters of credit in order to avoid default.
At present, India produces some 700 million pairs of shoes per year but exports just 45 million pairs. The average price of one pair of shoes exported to the USA is $ 13.29. Import duties for components range from 20% to 38% while finished shoes are liable to a 56 % duty upon entry into the country.
