Indian International Leather Fair 2016 that concluded on Wednesday received muted response from industry at the back of economic meltdown in the European Union and subsequent drop in exports.

Exports to Europe have come down by 22-25 per cent in the last 13 months and have affected the Indian leather industry, which is heavily dependent on the EU.

Vipan Seth, Director – Versatile Enterprises Private Ltd, a manufacturer and exporter of shoe fabrics, said response from business people was not as good as in the previous year.

“We get at least 2-3 clients every year but, this time, we did not even get one,” Seth said, adding that there were hardly any visitors on the last day.

“Though we did not incur any loss during the previous year, in order to grow, we have to shift our focus on acquiring new consumers,” Seth added.

Imports too have come down as the manufacturers saw reduced demand for leather products in 2015. Zainul Abdin, Marketing Executive – Zain International, a leather importer, said their imports to Indian manufacturers went down 30 per cent in 2015. The company imports 10.5 million sq ft annually from West Asia, Brazil, Russia, Poland and Africa for distribution in India.

Hopes on New Year

“We expect 2016 to be better for us as the exporters would have exhausted the current stock and will be required to replenish them,” Abdin said.

Even as leather importers and exporters have taken a hit due to the meltdown in Europe, shoe last manufacturers did not see much impact.

M Johnson, Marketing Officer – Sanghavi, a shoe last manufacturer said, “There might be a 5-10 per cent drop in sales and products are moving slower compared to last year.”

January and February are peak seasons for the manufacturer but, this year, mood has been sober and orders are just trickling in.

“We exported 2 lakh shoe lasts in 2014 and expect to sell 20-25 per cent more by March 2016,” he added.

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