The Hindu Business Line : `India should develop own leather brands'

INDIA should look at more than just providing manufacturing capacities for international leather brands — it should develop its own brands in the international market, according to Mr Valter Broda, Executive Director, Brazilian Equipment Manufacturer Association for Leather, Leather Goods and Footwear Markets.

Mr Broda, who was part of a contingent of leather, leather products and machinery manufacturers participating in the India International Leather Fair, said the growth of the fair itself was an indication of the trends in the leather industry here.

India has to add value to its products and not just manufacture for other big names. Having its own brand will make a big difference for India, otherwise "it will just rent factory space," he said.

With a brand that is recognised in the US and Europe the manufacturers here will make real money. Brazil has realised this truth and is moving in that direction, he said.

India, a new entrant

China, the other big name in leather, is a relatively mature market. People are looking at the newer entrant, India, with interest. It has to invest in technology, good leather, designs and brand to gain an edge over China, he said.

Where leather goes machinery will follow, Mr Broda said. In the past Brazil was sending its leather to India, but with the growth in manufacturing the leather machinery manufacturers are looking for distributors here.

With time this could possibly evolve into search partnerships for making components if not the machinery, he said.

A large team of leather, machinery, products and chemical manufacturers from Brazil participated in the India International Leather Fair that concluded here on Friday.

Brazil shares nearly a century-old interest in leather industry with India, according to Mr Flavio Alberto Lucchese, Adviser, Centre of Brazilian Tanning Industries.

Brazil's livestock originated from the Zebu breed that was exported to Brazil 70-80 years ago from India. They are today the source of most of the leather being exported by Brazil to India, he said.

Participants were optimistic on the projections of the development in this sector.

Mr Andre Nicolau Spier, Technical Sales, SETA, Brazil, a company that makes leather-tanning chemicals, said, "for sure we will be here next year also."

His company has been in India for nearly three decades and started with marketing a single chemical, and today it brings in a whole range.

Pakistan participates

Another big team was from Pakistan, which attracted enthusiastic enquiries. Mr Yaqoob Ali, Manager Sales & Marketing, Muhammad Shafi Tanneries (Pvt) Ltd, said that Pakistan leather manufacturers and Indian leather products manufacturers could work together. Pakistan has heard about the opportunities here and was just directly exploring the market for itself.

With manufacturing of leather products shifting to India, Brazil and China the potential was large. Pakistan could source leather chemicals from India and in turn could offer niche varieties of leather to Indian manufacturers.

Pakistan could offer big size goatskins, not available here, and other `hand worked' leather.

These would be ideal for leather footwear manufacturers here.