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Indrani Dutta

According to estimates, Russian imports are in the range of $400 million. But actual imports are only $1,000 million since a substantial portion of the market comprises grey imports.

Kolkata Oct. 1

THE Council for Leather Exports (CLE) is working on a strategy to improve its marketing network in Russia, which is emerging as major market for leather manufacturers.

CLE sources said the draft report of the Moscow-based marketing agency appointed by the CLE as consultants had already been submitted. "We are examining the various aspects and a market penetration strategy is expected to be in place by middle of this month," sources said.

According to available estimates, Russian imports are in the range of $400 million. However, actual imports are of the order of $1,000 million since a substantial portion of the market comprises grey imports. "The CLE is not targeting that area," sources said.

The options that are being examined by the CLE are either entering the market through strategic planning or by setting up a base in one of the CIS countries from where the Russian market can be serviced. Sources disclosed that the main item of exports would be footwear.

CLE had taken a small delegation to Russia, Armenia, Georgia and Romania, as part of its plans of developing new markets. It was then decided to engage an agency to help CLE chalk out its strategy sources said.

According to Union Commerce Ministry figures, India's exports to Russia stood at about $57.24 million in 1994-95. Since then, it had never been at a very consistent level touching $17 million in 2002-03. "This was due to various factors including the declining trend in Russian imports," according to sources.

Sources said the leather industry's visit to Armenia was also successful in that it increased awareness about the Indian industry. Currently, Indian exporters hardly have any presence in that market. Recent buyer-seller meets held there have begun to yield results and three business visas have been issued by the Indian Embassy in the Republic of Armenia, to Armenian nationals wishing to explore trade ties with India, CLE sources said.

Amid these market development programmes, industry figures showed that exports had touched $640 million between

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