West Bengal Industrial Development Corporation

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Leather & Leather Products

Profile & Performance

Leather Industry in India, occupies a place of prominence in the economy in view of its massive potential for employment, growth and exports. The industry employs 2.5 million people, and a large part (nearly 60 – 65%) of the production is in the small/micro sector.

There has been increasing emphasis on its planned development, aimed at optimum utilization of available raw materials for maximizing the returns, particularly from exports. Annual export

value of leather and leather products from India is more than US$ 2 billion and is among the top 8 export earners. India is endowed with 10% of the world’s raw material and its exports constitute about 2% of the world trade.

West Bengal is one of the country’s leading states for export of finished leather goods and accounts for almost 25% of the country’s leather exports. There are 538 manufacturing industries in the state producing leather goods. West Bengal Leather Industrial Development Corporation provides market facilities for the leather products manufactured by small-scale industries located in the state. 24 FDI approvals for Leather and Leather Goods during August 1991 to December 2005 were obtained involving an investment of US$ 56 million.

West Bengal has exported US$ 348.66 million worth of leather products in the year 2004-05.

The Government of West Bengal has set up state-of-the-art integrated leather complex on the eastern fringe of Kolkata spreading over 1100 acres, where a large number of tanneries located earlier within the city precincts have shifted and new investment interest has been generated. The leading players in the sector include:

	Bata India Ltd, one of the leading and the most popular shoe brands in the country. It sells around 60 million shoes and exports around 3 million footwear each year.
	Khadim Group is another prominent player in the footwear industry in West Bengal and has 183 franchisee outlets across the country.

A modern Design Studio is under implementation & expected to be operational by 2007, which will provide global design capabilities and design solutions to the manufacturers.

Policies & Plans

Ministry of Commerce is the guide of the leather industry. Since most of the leather made products is reserved for Small Scale Industries, the leather industry mostly follows the policies of the Cottage and Small Scale Industries. There is an improved thrust on branding and streamlining the production. The Council for Leather Exports has plans to tap the Russian market in a big way of identifying branded players as well as maintaining an update on design forecast. The licensed players in Russia would be given the opportunity to obtain their raw materials from India. The council is also targeting the US, Danish and Europian nations.

The Government of India has also announced 1% duty free import for manufacturer-exporter of all leather products exclusive of leather garments.

Products & Services (Illustrative List)

	Leather Shoes
	Leather handbags, wallets, belts and key holders
	Leather garments and clothing
	Manufacturing of machines to produce leather products
	Leather footwear components
	Leather Harness & Saddler
	Finished leather
	Leather furniture
	Leather Fashion Jeweleries
	Leather chemicals
	Leather component and luggage bags