The Hindu Business Line : Leading leather brands eyeing India

Chennai, Jan. 24 The Indian leather industry is at a crucial phase in positioning itself as a global leader — leading brands are looking at coming to India but waiting to see how the industry addresses the challenges of high costs driven by the strengthening rupee and high input costs, according to Mr Rafeeque Ahmed, President, All-India Skin and Hide Tanners and Merchants Association.

In the last six months, currency pressure has hit exports at a time when the industry was targeting a 20 per cent annual growth to double export to $7 billion in the next three years. Investment strategies have slowed down and the industry is seeking the Centre’s help in tackling the effects of the strengthening rupee.

The 11th Plan period (2007-12) is a challenging phase for the leather industry, which has the potential to meet the challenges posed by China, Viet Nam, Indonesia and Thailand.

Lerig 2008

Mr Ahmed was addressing a press conference at Lerig 2008, an annual event for the leather research and industry to get together. It is against the backdrop of the current scenario, the theme has been set as development initiatives, augmentation measures, opportunities and new directions for Indian leather sector, he said.

Lerig is organised by the Central Leather Research Institute (CLRI) and the leather industry associations. The three-day event is to be inaugurated on January 28 and will cover developments in the tanning sector, human resource and training issues, emerging trends and environmental issues in tanning.

Dr A.B. Mandal, Director, CLRI, said that the integrated leather development sector programme launched by the Centre will support all the segments of the industry. Over 472 applications with a total investment of Rs 435 crore and grants of Rs 65 crore are in the pipeline.

CLRI is involved in a range of programmes, including fashion forecasting, product innovation, human resource development and developing pollution control measures for the industry to meet environmental norms.