Industry & Economy
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Leather
Leather council plans roadshows to attract investments
Arushi Sen
Mumbai
March 16
The Council for Leather Exports (CLE) is looking to promote India as a brand to encourage foreign direct investment. Currently, there is no FDI in this industry. "To help attract foreign investment, we are planning roadshows in France and the UK next week," said Mr Mukhtarul Amin, Chairman, CLE.The leather industry has made an export projection of $7 billion by 2011.
By the end of this fiscal, exports are expected to reach $3 billion. "In order to reach the target, huge investments are needed and existing capacity has to be doubled. For this, FDI has to come," said Mr Amin.
Italy's Arpel Group, an international school for shoes & leather accessories designing, is looking for partners in India. Retail major Wal-Mart is also reported to be eyeing the Indian leather sector.
"Exports have been growing at 7-8 per cent every year. Footwear forms the major chunk of these exports at about 40 per cent," said Mr Amin.
According to data released by the Directorate-General of Commercial Intelligence and Statistics, exports of leather garments have decreased 5.29 per cent for the period April-October 2006.
"Exports of leather garments have been showing a slight negative growth because we were operating mainly in the low fashion segment where there is increasing competition from China. However, Indian exporters are now moving up the price bracket to become more competitive," said Mr Amin.
Subsidy
The existing leather manufacturers get a Rs 50-lakh subsidy for the modernisation of existing units. The Council has requested the Government to increase it to Rs 1 crore.
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