The Hindu Business Line : `Global leather players eyeing India as manufacturing hub'

According to Mr Rafeeque Ahmed, Chairman, Council for Leather Exports, large brands, particularly footwear manufacturers, around the world are planning to set up shop here.

This will have a cascading effect on the entire industry from raw material suppliers to component manufacturers.

Addressing a press conference here today on the eve of the India International Leather Fair, Mr Ahmed said that at no time earlier has the industry been filled with as much optimism.

Manufacturing capacities were on the increase, investments were coming in and new infrastructure was being put in place. There has been at least a 20 per cent increase in production capacities in the last two years, he said.

India is set to gain as it represents the only real alternative to China. In Thailand the cost of production is high and in Indonesia there are political and investment issues that industries are concerned about. Vietnam has been a limited success.

India presents the maximum potential in terms of capability, he said.

Companies from South East Asia and Europe are looking to India to set up manufacturing facilities.

Dr K. Elangovan, Executive Director, Council for Leather Exports, said the leather industry has set up an India desk in Milan, Italy, to forge a closer link with the market there. It will also promote investments and joint venture collaborations.

The 21st India International Leather Fair will see over 320 companies showcasing their products and capabilities. More than 100 companies will be from 21 countries including the US and from Europe and South East Asia.

On display will be machinery for tanning, shoe making, dryers, footwear and footwear components, leather goods and finished leather.