Indian leather exports eye Russian market
An export drive focused on Russia is currently being finalised by India’s Council for Leather Exports (CLE). The initiative is part of a wider market development programme that will be implemented in 2004-5 and involve business meetings in 13 countries, as well as CLE representation at 14 foreign fairs.
Russia is emerging as a major market for the leather industry, CLE says, officially importing about $400 million worth of leather items in 2002. With the inclusion of grey imports, however, the actual figure was likely to have been in the region of $1 billion.
Indian leather imports currently account for around 5% of the total official Russian market, the main exporters to that destination being China, Italy, Germany and Poland. To increase India’s share, the CLE said it had appointed a Moscow-based marketing agency. It plans also included meetings with prospective investors in China, Spain, Italy, Portugal and France.
The export push comes during an uncertain time for the Indian leather industry, even though it has already achieved the $2 billion target set for exports in the current fiscal year. According to official statistics, exports for the first eight months of 2004-5 are on target for $1.3 billion, with the footwear, garments, leather goods, saddlery and harness and non-leather footwear performing particularly well. Due to the closure of several footwear units, however, footwear components look set to lose much of their overseas markets, as does finished leather.
Last year a team of executives from the US explored the opportunities for sourcing their exports from India. The market development programme met with some success as some department stores had since decided to try out India leather goods and garments, CLE says.
