The 18th India International Leather Fair (IIL, was held January 31 – February 4 at the Chennai Trade Centre, Chennai, India. Inaugurated by Union Minister of State & Commerce, the Honourable Shri Rajiv Pratap, this year’s fair, organised by the India Trade Promotion Organisation (ITPO), covered a record display area. Wdely seen as India’s showcase to the world, IILF this year attracted some 8,000 business visitors and 260 exhibitors, including 35 from 20 overseas countries. This constitutes a healthy increase over 2002.

The leather industry is one of the great success stories of independent India, occupying 8th place in the country’s export table for 2001 with a value close to USD 2 billion. The industry enjoys a strong resource base and world-class R&D facilities. It also remains confident for the future, and despite a slight dip seen in 2002, an export target of USD 3 billion has been set for 2005. The USA and major European countries continue to be strong markets for Indian leather products, accounting for 78% of the sector’s exports. IILF, therefore, remains an important occasion for the Indian leather industry.

In his welcoming speech, Chairman of the Council for Leather Exports (CLE), Shri Irshad Mirza, gave a brief overview of the leather sector’s performance. During the previous few years, the export of value added products had increased considerably, he observed, such that it now comprised 80% of the industry’s total. Value addition ranged from 150% to 400%, which had not only achieved huge foreign earnings, but also provided increasing and much sought-after job opportunities for the more disadvantaged sections of Indian society.

He said this success was largely due to the efforts of the companies concerned, but it had also been underpinned by proactive policies from central Government. Substantial investment in design, technology and quality control had been made in response to market requirements and to achieve further export growth. India’s current share of the world export market for leather goods is only 2.6% but this is expected to grow to 4% by 2006-2007. The CLE would continue to support the increasingly aggressive marketing programme of those companies seeking broader international markets.

Despite the export blip seen in 2001-02, most commentators are confident that long term prospects remain good. Good material resources and low cost skilled labour are still key factors. The industry however, has taken to heart the demands of sophisticated first world markets in terms of quality, technical innovation and environmental awareness. Added to this is a realisation that marketing is the keynote to modern selling. Relying on low prices and waiting for the buyer to call, providing a sample and then waiting for the buyer to ask you to make it, no longer apply. Indian companies now understand this and are coming to terms with the increasingly tough world wide market place.

FACTS & FIGURES

Estimated capacities for leather & leather products

Exports of leather and leather products (Million USD)

(Source CLRI)

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