The Hindu Business Line : Leather sector chalks out plan for expansion, infrastructure

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Chennai Jan. 30 The leather industry has presented a plan to the Centre seeking its support for capacity expansion and infrastructure development for export growth, according to Mr Mukhtarul Amin, Chairman, Council for Leather Exports (CLE).

Addressing a press meet on the India International Leather Fair to be inaugurated here on Wednesday, he said the Government has identified the industry as a focus area because of its potential for employment generation.

Exports in 2006-07 are expected to cross $3 billion, against $2.6 billion last year. Over the next three years, the industry has set itself a target of doubling exports to generate over a million jobs, he said.

According to Mr Amin, the industry has asked the Government to set up 15 small, integrated leather parks in various leather production centres, extend the `leather sector modernisation scheme' and develop two centres of excellence for design and development.

Dr K. Elangovan, Executive Director, CLE, said that India had emerged as a `common ground' between the East and West. Cost increases have resulted in companies in Italy, Spain, Portugal and Germany looking elsewhere for investments. Labour costs in the traditional investment destinations such as China and Vietnam are also increasing. India is the next main opportunity.

An indication of India's emergence in the global leather markets is the increased participation in the India International Leather Fair, he said.

There are over 64 overseas buyers, 325 participants showcasing leather products and a third of them are overseas participants from 22 countries.

The four-day event is an annual feature by the India Trade Promotion Organisation and is sponsored by the CLE, Central Leather Research Institute and a host of industry associations.

Another highpoint is the Modeurop Roundtable Conference being held simultaneously. The international body forecasts fashion and trends in leather for the next three seasons and brings out a colour and texture card for the leather businesses.