The Hindu Business Line : CLRI, leather sector to float firm to improve technology

THE Central Leather Research Institute (CLRI) and the leather industry will together promote a not-for-profit company to improve the industry's technological capabilities.

According to Mr M.M. Hashim, Chairman, KH Group and a leader in the leather industry, the company, to be named CLRI India Leather Industry Foundation, will have an initial capital of Rs 50 crore.

CLRI officials and industry leaders will tour various leather centres in the country to highlight this public-private partnership concept.

Mr Hashim made this announcement at the inauguration of the 40th Leather Research Industry Get-Together (LERIG) here on Saturday.

He also highlighted the pollution problems that the industry was facing, especially the small and medium tanners. This needed to be addressed, as otherwise it would be difficult to achieve the target of doubling exports to $5 billion in the next five years.

The tanning industry in Tamil Nadu had spent about Rs 150 crore in the last 10 years on various environment related matters. It now had to achieve zero liquid discharge - which meant that all the water had to be made recyclable. This was a daunting task for the small and medium units.

Thirteen large tanneries had invested Rs 18 crore to achieve this, while the small and medium tanneries would require about Rs 100 crore for this process.

The units would together be able to raise about Rs 25 crore and would require the balance Rs 75 crore as grant from the Government. Mr Hashim assured that by 2007-end the industry would achieve zero liquid discharge. He also said that by June 2006 all tanneries in Tamil Nadu would have secured landfill for which they would spend Rs 25 crore.

Inaugurating the LERIG, Dr V. Krishnamurthy, Chairman, National Manufacturing Competitiveness Council, said, in view of the sector's potential to generate rural employment, the council had recommended that the leather industry should be given the same status as the textiles sector. Without elaborating, he said if this was done the sector would witness dramatic changes.

Dr Krishnamurthy said the leather industry had the potential to achieve an export figure of $7-10 billion, for which the sector should improve design and manufacturing competitiveness. The sector should stress on design and on high value-added items.

He saw advantage in India, Pakistan and Bangladesh adopting a coordinated attitude on raw material.

Mr Rafeeque Ahmed, Chairman, Council for Leather Exports, was confident that the industry would be able to increase exports to $5 billion from $2.4 billion now in the next five years. At a recent meeting with the Prime Minister, the industry had highlighted what needed to be done to achieve this and also the sector's potential to generate one million new jobs.

He said different segments of the industry would grow at different rates, with footwear and leather goods doing well. However, leather apparel was an area of concern as it was not doing as well as expected. An American delegation that visited India recently expressed the desire to increase purchase from India, but wanted the Indian leather industry to create adequate capacities for this.

Dr T. Ramaswami, Director, CLRI, said the institute was on the verge announcing a biological method of leather processing to replace the bio-chemical process being followed now.