Leather goods exports to dip by 13-15% this fiscal, to rebound strongly in FY25: Manufacturers’ body

Export of leather goods from India will dip by 13-15 per cent in the current fiscal, but will rebound strongly by around 20 per cent in FY25 on account of the depletion of existing stockst, and fresh orders, especially from Europe, where a harsh winter has created huge demand for leather goods, said K.R. Vijayan, Chairman, Indian Finished Leather Manufacturers’ and Exporters’ Association.

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Exports, which stood at $4.87 billion in 2021-22, shot up to $5.26 billion in 2022-23. However, up to October, exports were at $2.81 billion, which is 13 per cent less than that in the same period last year. “We will see a similar trend at the end of the fiscal,” he told newspersons. Vijayan met the media to announce the Leather Fashon show to be held in Chennai on February 1. The show has been organised since 1995.

Considering the potential to increase exports and the consumer base in the country, the footwear and leather industry aims to achieve turnover of $47.1 billion by 2030. This includes domestic industry turnover of $33.4 billion, and export turnover of $13.7 billion, from the present turnover of $17.26 billion. However, to achieve this, we require innovation both in technology and advanced machines, he said.

India is the second largest exporter of leather garments, the second largest exporter of saddlery & harnesses, and fourth largest exporter of leather goods in the world. The employment intensive industry provides jobs to around 4.42 million people, mostly from the weaker sections of society. Women account for 40 per cent of the workforce in the leather products sector. However, in Tamil Nadu, it is nearly 70 per cent.

Vijayan said the use of non-leather products was a major challenge as these were non-degradable; also, non-leather shoes are not as durable as leather shoes, which means, usage of non-leather is higher, which affects the environment, he said.

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Vijayayan requested the Government to organise a buyer-seller meet in Europe and the US to increase exports. “The Government should invite and host foreign designers to the fair. These designers will select leathers for the next season. If the Government considers our above request, the leather industry will be able to double its exports,” he said.

SK Sabapathy, Chairman, Saba Group, said in addition to the huge spill-over of stocks due to Covid, there were logistics issues; shortage of containers and shipments were getting delayed. “However, once these issues settle down, there was a huge order from global brands and we carry forward over 60 per cent of 2022 stocks in to 2023. The effects of the Ukraine-Russia war was felt at the end of 2022, and in turn affecting the industry badly in 2023. However, we are optimistic and expect the year 2024 to be very good,” he said.

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