•Leather Sector

•Global

•National

•Andhra Pradesh

•Slaughter Houses

•Animals Slaughtered

•Promotion of Leather Parks

•Global Players in Leather Sector

China

Italy

Hong KongFranceGermanyBrazilIndia

Spain

Romania

Indonesia

TaiwanKorea

Others 22.0

15.8

10.04.04.03.43.02.4

1.71.61.31.1

29.7

Global Leather and Leather Products Trade

(percentage)

Global Leather and Leather Products Trade

21464

3930

15433

7055

101839649

3740

5778

3628

6701

3078 2566 24952334

22386

21922226

China Italy Hong Kong France Germany Spain India USA Belgium

(in US $ Mill)

Exports

Imports

• India is the second largest footwear producer.• India is the third largest exporter of saddlery and harness items.• India is the third largest producer of leather goods after China and

Italy• India is the fourth largest supplier of leather garments.• Annual Turnover/ Production - Rs 25,000 Crores• Domestic Sales – Rs 14,200 crores• Annual Export - Rs 10,800 Crores (43%)• 2.5 million employment direct and indirect• Largest Livestock holding country - A sources about 10% global

requirement of Leather.• One employment for every Rs 35,000 investment• Investment to turnover ratio 1:4

Indian Leather Map

• Major production Centre : Tamil Nadu, West Bengal, Uttar Pradesh, Punjab & Andra Pradesh.

• Leather exports from India account for around 3% of the total global leather exports

• India’s consumption of leather products is expected to grow at around 3-4% per annum in the near future.

10th Plan

)US $ mill(

11th Plan

)US $ mill(

Domestic projections

Footwear Segment 2198 4338

Other Leather commodities

1387 1967

Export Projections

Finished Leather 606 962

Leather Footwear 1035 3192

Leather Garments 328 416

Leather Goods 511 905

Saddlery & Harness 76 240

Leather Gloves 138 273

Total 6279 12293

Sector Capacity % Growth

Tannery (mill. Sq. ft) 1,468 29.11

Footwear (pairs per annum) 15.96 crores 49.01

Saddlery (pieces per annum) 28.38 lakhs 30.00

Leather garments (pieces per annum)

29.30 lakhs 53.00

Footwear Components (pairs per annum)

9.30 crores 36.00

Leather Goods (pairs per annum) 18.34 crores 43.00

Indian Leather sector Capacity after modernization during 10th Plan

Sector 2000-01 2005-06

Leather Garments 24 12

Leather Goods 23 24

Finished Leather 19 23

Leather Footwear 19 28

Footwear Components 12 7

Saddlery & Harness 2 3

Non-Leather Footwear 1 3

Indian Leather Sector Exports – Changing Segments

(in percentage)

Indian Leather Exports

2000-01-

2005-06-

US $ 1.9 billion

US $ 2.7 billion

• A major employment generator and contributor to social and gender equity, where

35% of women forces and workers.• About 2.5 million employees are working and about 2.5 million employees

working in-directly. The work force is expected to be increased by an another one

million.• Of the 321 million hides and skins processed annually by the industry, 85% is

sourced domestically.  • A major export revenue earner for the country.• Value addition through technologies and up gradation is highest in the country.• Most plants are clustered within the states of Tamil Nadu, West Bengal, Uttar

Pradesh, and Punjab• Tamil Nadu accounts for 70% of leather tanning capacity (225 million

processed pieces annually) in India and 38% of leather footwear &

components. The exports from Tamil Nadu are about US $ 762 million, which

account for 42% of Indian leather exports • TN has over 9000 registered small and medium firms and about 70 large

scale firms and about 40 composite firms

482.20

399.80

204.60167.04 158.00

0.38

AP UP Mah MP TN Rajasthan

Animal Population top States

(in lakhs)

• A.P. provides 10% of India’s raw material, yet, tanning and finishing sectors have not grown significantly to completely utilize the available raw materials resources

• AP could tan only 5% of the raw materials due to lack of tanning facilities Balance 95% is transported to other States where value addition is undertaken at the cost of A.P.

• There are around 30 tanning units in AP with minimal tanning and processing capacity.

Srikakulam

Vizianagaram

Visakhapatnam

KrishnaGuntur

Prakasam

Nellore

Chittoor

AnatapurKadapa

Kurnool

Mahabubnagar

Ranga Reddy

Hyderabad

Medak

Nizamabad Karimnagar

Adilabad

Nalgonda

Khammam

Warangal

West Godavari

East Godavari

63

47

37

33

32

3026

25

24

24

1612

> 25 Nos

Between 10 & 25

< 10

Number of Slaughter Houses

12

12

9

88

87

5

5

4

0

Total Number of Slaughter Houses - 447

%Growth of Animals in AP & Animal Slaughtered during 2007-08

(in lakhs)

S.No AnimalNo. in 2005

No. in 2007

% increase

No. slaughtered during 2007-08

1 Sheep 210.15 245.85 17.0 20.85

2 Goat 64.27 97.65 51.9 9.63

3 Buffalo 107.68 137.28 27.5 4.81

4 Cattle 94.28 114.89 21.9 1.16

5 Pigs 5.49 4.35 -20.8 0.89

Srikakulam

Vizianagaram

Visakhapatnam

Krishna

Guntur

Prakasam

Nellore

Chittoor

AnatapurKadapa

Kurnool

Mahabubnagar

Ranga Reddy

Hyderabad

Medak

Nizamabad Karimnagar

Adilabad

Nalgonda

Khammam

Warangal

West Godavari East Godavari

District-wise animals Slaughtered during 2007-08

629451

364178

330922

303103

301779

Total Number of animals Slaughtered – 37,34,891

Sheep 20,84,583

Goats 9,63,586

Buffaloes 4,81,184

Cattles 1,16,354

Pigs 89,184

218598

218564

188732

142671

135718

130168

129264

108411

97308

78080

75518

73510

53297

52531

50230

39368

13490

0

> 2.00 lakhs

Between 1.00 lakh and 2.00 lakhs

< 1.00 lakh

No of Animals slaughtered in AP during 2007-08

20.85

9.64

4.81

1.16 0.89

Sheep Goat Buffaloes Cattle Pigs

(in lakhs)

Total Animal slaughtered- 37,34,891

Promotion of LIDCAP Leather Parks/Projects

1. Krishnapatnam International Leather Complex

2. Shifting of Hyderabad Tanneries – Promotion of Kunoor Leather Park

3. Promotion of Mega Leather Park at Rukmapur in Karimnagar

4. Promotion of Mega Leather show room at Autonagar, Vijayawada

5. Promotion of Mega Leather Park at Gangadhara Nellore in Chittoor

6. Promotion of 18 Mini Leather Parks and leasing to the SC entrepreneurs

for setting up of leather products

7. HS Darga Leather Products Production & Training Centre

8. Tirupathi Leather Park Development

International Leather Complex

1. GO issued on 06-06-2008

2. Total Land – 412.41 acres

1. Land in APIIC possession – 104.92 acres

2. Land to be obtained from APGENCO – 307.57 acres

3. Project Cost – Rs 194.01 crores

1. LIDCAP’s GOI grant - Rs 30.00 crores

2. IIDF - Rs 50.00 crores

3. SPV - Rs 114.01 crores

Shifting of Hyderabad TanneriesProgress on the Kunoor (Bhongir), Nalgonda Leather Park

• Total land – 120 acres

• Total 10 units proposed - each in 5 acres

• LIDCAP – 5 acres

• GOI given Rs 3.00 crores, State Govt. given Rs. 1.75 cr

• CETP completed with Rs. 2.28 cr.

• Rs 31.5 lakhs spent on approach road through PR Dept.

• Units in the Kunoor Leather Park

• M/s. Hamsa Impex Ltd.

• M/s. South India Prime Tanneries

• M/s. Ever Green Leathers

• M/s. Hyderabad Leathers

• M/s. Roshan best Tanners

• 4 units have completed construction, one unit commenced production, one unit completed

machinery installation

V

vacant

vacant

vacant

vacant LIDCAP

CETP

Progress on the Kunoor (Bhongir), Nalgonda Leather Park

M/s Hamsa Impex Ltd. & M/s. South India Prime Tanneries

M/s Hamsa Impex Ltd. & M/s. South India Prime Tanneries

M/s. Hyderabad Leathers

M/s. Roshan best Tanners

Progress on the Kunoor (Bhongir), Nalgonda Leather Park

M/s Hamsa Impex Ltd.

Common Effluent Treatment Plant

Srikakulam

Vizianagaram

Visakhapatnam

KrishnaGuntur

Prakasam

Nellore

Chittoor

AnatapurKadapa

Kurnool

Mahabubnagar

Ranga Reddy

Hyderabad

Medak

Nizamabad Karimnagar

Adilabad

Nalgonda

Khammam

Warangal

West Godavari

East Godavari

Duddeda ( 25 acres)

Dandepally ( 25 acres)

JinKunta( 25 acres)

Kurnool( 784 Sq Mts)

Rachepally( 42.28 acres)

Tirupathi( 4.55 acres)

Adigppula(3 4.25 acres)

ILC(412.41 acres)

Nuzivedu(20.24 acres)

Vennelavalasa(30 acres)

Mallemadugu(25 acres)

Ghanpur Station(25 acres)

Mandamarri(25 acres)

Armoor(28.01 acres)

Rukmapur(134.31 acres)

Jammikunta(25 acres)

Vijayawada(1 acre)

Gangadhara Nellore( 417.77 acres)

Kunoor(120 acres)

HS Darga(43.08 acres)

Leather Parks of LIDCAP

Polepally( 25 acres)

Srikakulam

Vizianagaram

Visakhapatnam

KrishnaGuntur

Prakasam

Nellore

Chittoor

AnatapurKadapa

Kurnool

Mahabubnagar

Ranga Reddy

Hyderabad

Medak

Nizamabad Karimnagar

Adilabad

Nalgonda

Khammam

Warangal

West Godavari

East Godavari

Duddeda ( 25 acres)

Dandepally ( 25 acres)

JinKunta( 25 acres)

Rachepally( 42.28 acres)

Tirupathi( 4.55 acres)

Adigppula(3 4.25 acres)

Nuzivedu(20.24 acres)

Vennelavalasa(30 acres)

Ghanpur Station(25 acres)

Jammikunta(25 acres)

Vijayawada(1 acre)

HS Darga(42 acres)

Machinery installed in Leather Parks

Promotion of Mega Leather Park at Rukhmapur, Karimnagar(Footwear)

1 .Covered in the CM’s Announcement (dated: 11-4-2008)

2 .Area of the land 134.31 acres at Rukmapur (V),

Choppadandi (M) for establishment of Leather Park

3 .CLRI prepared a Project Report for establishment of

footwear complex for Rs 98 crores

Promotion of Mega Leather Park at Gangadhara Nellore, Chittoor(Tanning)

1 .Area of the land – 431.20 acres

DKT land – 235.59 acres

DKT alienated land – 14.86 acres

Govt. Land – 167.45 acres

Patta land – 13.50 acres

2 .Location - 9 Kms from Chittoor, 40 Kms from Ranipet, 150 Kms

from Chennai, potential for the tanneries.

3 .LIDCAP has paid Rs 73 lakhs on 16-9-2006 to District Collector.

Promotion of Mega Leather showroom at Autonagar, Vijayawada

BJR Mega Leather Show Room

• LIDCAP is having its own land of about 4060.43

Sq. Mts in the Autonagar, Industrial Estate

Vijayawada on the main road of Benz Cirle to

Machilipatnam road.

• Only 403 Sq. Mts of land is being used for shoes /

Chappal show room, office building and

manufacturing unit. since 1974

• The Area of the plot after the required minimum set

offs on all side is 2,000 sq. mts (21,528 sft)

• It is proposed to construct a Mega Leather

Complex with a private participation in the project. It

is proposed to construct two cellars (Lower Cellar

and Upper Cellar), Ground Floor plus 8 floor

building complex.

Tirupathi Leather Park

• LIDCAP is having 4.5 acres of land in the outskirts of the Tirupathi City

• 4 buildings are constructed of which one building (about 800 Sft) is

leased to one small industry and one building (about 600 sft) is being

used as Regional Office

• Two more buildings (of each 2000 sft) is for the purpose of training

(presently not being used). It is proposed to lease this buildings along

with foot wear training machinery and also part of the office building.