The Hindu Business Line : Leather industry sees US as next major destination

INDIA's leather footwear and products manufacturers could benefit from the US brands' decision to bring down dependence on China and Vietnam as sources of finished products.

The industry has the capability to deliver but the Government will have to chip in by simplifying the paper work and improving infrastructure.

According to Mr Killick Datta, of the American Apparel and Footwear Association (AAFA), who led a delegation of major US footwear companies looking to source products from India, US brands cannot place large orders with Indian companies that also ramp up production, only for the US brands to find support infrastructure lacking.

It is not just price that is driving these companies but the product quality and value that the industry here is churning out.

No competition with China: India has immense potential with a huge resource of leather raw material, skilled workforce and no language barrier. It does not have to compete with China, which is 10-15 years ahead in the business.

China's strength is in large volumes and `white shoes,' the trade name for sport shoes. India's is in brown and black shoes, the leather casuals, smaller volumes and high value products.

New production locations: Ms Fawn Everson, President, AAFA, said that India could also see major expansion in production as companies prepare to diversify their production locations.

For instance, the possible imposition of anti-dumping duty by the European Union on China and Vietnam is a major concern.

A Taiwanese company is planning to set up a production facility in Chennai.

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