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Tap the exhibition market in India: ITPO EDForever News Reporter

Chennai: The exhibition market in India offers lot of prospects for business and that can be tapped, said Deepak Kumar, Executive Director, India Trade Promotion Organisation. (ITPO). He was speaking with Infodea on the first day of 34th India International Leather Fair in Chennai. While the potential of the exhibition market abroad is pretty large, only about a minor percentage is being tapped at the moment in India.

‘We are moving towards tapping that potential through various measures.’ We are looking at expanding space on Pragati Maidan, the popular exhibition space in New Delhi. Over one lakh square metres of space will be added which can accomodate seven new exhibition halls. The work began in 2017 and is expected to witness completion by the end of this year. He said the works are being taken up at the cost of Rs 2,700 crore. A basement car parking facility will also be provided here that can accomodate 5000 cars.

He further said, they are working towards

building an underground tunnel of six lanes that will make the approach to the popular exhibition spot in the national capital. This lane is expected to decongest Bhairav Marg and Mathura Road, the two ways that connect the popular exhibition spot. They are also looking towards setting up a similar exhibition spot in Mumbai also. When we have more space, there is a greater scope for bringing more players, he added. On the other hand, space at Chennai Trade Centre is also to witness expansion to give scope for more business players to take part in the exhibitions.

Speaking to Forever News, V R Subbulakshmi, Managing Director Tamilnadu Trade Promotion Organisation said a redevelopment project is being taken up at Chennai Trade Centre at a cost of Rs 289 Crores. This will add 15,000 Square Metres of additional space to us. The redevelopment work will take place over nine acres of land located adjacently and approval for this has been obtained. Work is expected to begin soon in about next two to three months.

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IILF 2019 showdaily released by Deepak Kumar, ED ITPO along with team

INDIA INTERNATIONAL LEATHER FAIR 2019, CHENNAISEMINAR PROGRAMME

DATE TIME PROGRAMME VENUE ORGANISER

2nd February 201910.00 AM TO 01.00 PM Seminar Seminar Room A ILTA, Kolkatta

3.00 PM TO 05.00 PM Members Meeting ILPA-SR, Chennai

To Advertise please contact Forever News Call : G. Subramanian +91 9819464604302, 3rd floor, Olympus House, 25 Raghunath Dadaji

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Voice of Visiters/Exhibitors

“We have some booking for machines and are expected more in the coming days.”

Tao PengVice General Manager.Gester Total Testing Solution,

“I am attending this fair for the past 10 years. I am in the trading and sales and services. I look forward to come again.”

Mr. Devender Singh, Star International Pvt. Ltd.

“I have purchased an embossing sewing machine@45 lakhs. I am in the business of leather for past 30 years. I attend this exhibition for the past so many years.”

P. MD. Nooruddin, Raise Leather Works

One of The exhibitor from Italy

Mario PucciAssomac,

National Association of Manufacturers of Footwear,

Leathergoods and Tanning Technologies

International Realation Director

“The arrangements are fantas-tic all kinds of infrastructure for the leather industry and leather manu-facturers under one roof. It is an op-portunity for new entrepreneurs to derive an idea on enhancing their entrepreneur ship by visiting the stalls available from international corporates and domestic players in leather industry. It is a great oppor-tunity to the make in India program a grand success. SBI has been provid-ed with an opportunity to visit stalls and get authentic info about the dal-ers with help of the catalogue and show daily supplied. This will pro-vide us a great opportunity to serve the industry in their financial re-quirements. We wish all the best and many more occasion s to continue at various center’s.”

D. GunasekaranAGM, SBI

“We are attending the fair for the 7th year. On the day one we have booked an order for 30 lakhs. Compared to last year we are better this year our business model quality is our strength. Targeting a business mix of 1 Cr. within this 3 days. The support of ITPO is immense.Mr. Mani, Sangeetha Enterprises Machine Manufacturers

02 INDIA INTERNATIONAL LEATHER FAIR Chennai 2nd February 2019

German Pavilion

An expo enthusiast reading the show daily for the updates.A consortium of 15 companies

represented under the banner of Federal ministry for economic af-fairs and energy have huge expeta-tions from the India international leather fair held from 1 - 3 Febru-ary 2019.

VDMA - Textile care, Fabric and Leather Technologies. Our experi-ence in the last exhibitions are quite positive and we could garner busi-ness acumen to the tune of 50 mil-lion USD. We have a strong pres-ence in the leather manufacturing business as well as exports. We look forward to many strategic alliance with Indian companies in terms of technology transfer as well as com-mercial.

Carina Mazzucato, Special Advisor, representing Government of Germany

03INDIA INTERNATIONAL LEATHER FAIR Chennai2nd February 2019

04 INDIA INTERNATIONAL LEATHER FAIR Chennai 2nd February 2019

S. Suchithra

India is the second largest producer of footwear globally, accounting for thirteen per cent of the world foot-

wear production, next to China, that dominates the world footwear busi-ness close to 67 per cent of the ap-proximately market.

Comparing footwear production in key developing markets – China pro-duces whooping 14,200 million units, followed by India manufacturing 2,209 million units.

Brazil produces 900 million units while Vietnam produces 770 million units annually.

Out of the 2.2 billion pairs of foot-wear produced annually, about 180 million pairs are exported, while the rest (95% of the produce) meets the domestic demand.

The average per capita footwear consumption in India continues to be low at 1.66 pair per annum in com-parison to the global average con-sumption of 3 pair per annum and de-veloped countries average of 6-7 pair per annum by merchandise, the Indi-an footwear market is dominated by casual footwear market that makes up for nearly two-third of the total foot-wear retail market.

The majority of the Indian footwear market is men’s footwear that ac-counts for nearly fifty eight per cent of the entire Indian footwear retail mar-ket.

Non-leather footwear accounts for 1.23 billion pairs, or 56 per cent of the footwear market in India.

The strength of India within the an-imal skin footwear sector originates from its command on reliable offer of material resources within the kind of raw hides and skins, quality finished

leather and huge put in capacities for production of finished animal skin and foot

The Indian footwear business is very fragmented with virtually 15,000 small and medium enterprises oper-ating largely in the unorganized seg-ment; and limited presence of organ-ized segment.

The business is dominated by un-organized sector that accounts for around eighty five per cent of the en-tire footwear production.

The competitive intensity is high between the 2 segments and pres-ently, each square measure calcula-ble to possess associate degree equal share of the domestic market in worth terms.

India has associate degree put in capability of 2.8 billion pairs, second only to China.

The bulk of production is in men’s animal skin shoes and animal skin up-

pers for each men and girls.India has over a hundred totally

mechanized, fashionable shoe creat-ing plants.

Footwear could be a labor intensive business, providing jobs around one. 1 million people, and is a source of em-ployment to people from the weaker sections of the society and the minori-ties, especially in the leather segment.

The footwear businesses along side alternative few industries like textile and garment industry along square measure the biggest employers in Bharat, once the agricultural sector.

The footwear business encompass-es a vital illustration of girls, UN agen-cy comprise over half the employees utilized during this business.

However, this can be primar-ily within the southern a part of the country, where a high degree of mechanization and a stronger organ-ized sector has enabled the share of women in

the manpower to be as high as ninety per cent in footwear clusters in Tamil Nadu and Kerala.

Future outlookPer capita footwear consumption in

Bharat is ~1.7 pairs, compared to six pairs in developed markets.

Assuming that this level of per cap-ita demand for footwear in Bharat are reached by 2030, the demand for footwear may reach up to nine billion pairs.

Assuming 6 June 1944 inflation in footwear value once a year, this rep-resents a complete domestic market size of US$ eighty billion by 2030.

Even if the per capita demand for footwear is down to four pairs, the entire domestic market size (com-pounded for sixteen years from 2014 to 2030) would begin to be US$ 45 bil-lion.

Though there’s vital potential dur-ing this sector, it must be noted that footwear production capacity in India has remained almost stagnant in the last decade primarily due to a

small organized presence with-

in the footwear sector and a policy framework that doesn’t encourage the expansion of the organized sector.

ChallengesLack of stigmatization in Indian

footwear – Despite being one in eve-ry of the most important employers, promoting and stigmatization re-mains the industry’s Achilles heel.

Marketing activities at the trade level area unit poor and ineffective, whereas at the corporate level, low promoting budgets end in ineffective, short term promoting campaigns that don’t go beyond generating aware-ness.

Challenge from China and different low price markets – The USD thirty five billion Indian footwear trade is reeling fraught as China is merchan-dising its merchandise in India at a

lower rate and additionally the magnitude relation of exports to im-ports has fallen drastically.

People like Chinese footwear over domestically made merchandise as they’re cheaper and supply a large style of merchandise.

Out of the overall Indian footwear imports, 63% is imported from China, and the import has increased by 295% in last 5 years.

Further, most of those footwear merchandise area unit sold-out within the un-organized retail mar-ket, without VAT and Excise addition, causing a significant loss to the ex-chequer and a potential loss

of approximately 214,000 jobs for the domestic industry.

Due to the increasing imports from China to European country, Indian presence has reduced in the total im-ports of Italy and thus has recorded a negative growth rate.

The maximum exports of Republic of India area unit created to United Kingdom of Great Britain and North-ern Ireland and America as they ac-quire the most important share in India’s total footwear exports with eighteen.9 per cent and 11.3 per cent respectively.

Unorganised trade structure and In-dia’s fight vis-à-vis major exportation nations – the first reason for the unor-ganised and little scale setup of Indian animal skin trade is that the historical restrictions of licensing and SME res-ervation of the arena till 2001.

Further, majority of corporations within the Indian animal skin and footwear sector area unit proprietary or partnership corporations, that usu-ally have a lower risk appetency and area unit typically unwilling to under-take major capacity expansions.

The domestic market – overshad-owed by exports – The domestic foot-wear industry was estimated to be valued at US$10 billion (or INR 62,300 crore) in FY2014-15.

India exported US$2.6 billion (or INR 16,200 crore) worth of footwear in FY2014-15 (according to Ministry of Commerce data).

Despite the domestic trade being virtually four times the dimensions of the export market, the domestic foot-wear trade has not received a lot of support from the Govt. in terms of pol-icies, compared to the export sector.

Lack of trained labour – the as-sembly method of a animal skin shoe needs a big level of information and talent, considering the quantity of el-ements that get into the creating of a leather shoe. While the necessity for fittingly trained and hot personnel is felt across all levels, the shortage is felt a lot of acutely at the lower level of semi-skilled work force.

Impact of wages The pay revision that occurred in

July, 2007 increased the effective min-imum wages for unskilled workers by 37 per cent and subsequent increases in January/July once a year have addi-tional inflated this higher base figure by another 216 per cent to adequately make amends for the inflated price of living.

Thus, the unskilled worker’s remu-neration has virtually tripled between Gregorian calendar month 2007 and Gregorian calendar month 2015.

In addition, many components of wages not reflected in Minimum Wages fixed.

An unskilled employee at the pre-vailing pay of office 7,600 per month actually has a total remuneration of INR 9,439 per month.

With up to twenty five per cent of ‘cost of products sold’ being contrib-uted by labour prices, even a 10 per cent increase in the labour compo-nent erodes profitability by a big mar-gin and convey trade perilously on the point of creating losses.

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Footwear Industry an overview and challenges

05INDIA INTERNATIONAL LEATHER FAIR Chennai2nd February 2019

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Short supply of leather a serious concern for exporters as well as domestic market playersG. Subramnaian

Banning sale of animals slaughter affecting leather industry and the industry is losing the export

market to China. Approximately Rs. 40,000 crore leather export industry is facing the rough weather. The industry has not seen any growth in past couple of years because of this ban. The industry is depending on meat sector. Around 70% of the leather industry depends on the hides of animals which are dying naturally. Only a small part is available from slaughter houses. In India there was a system that farmers used to sell non-productive animals in best available price to slaughter house. Now because of the ban the whole system disrupted and affected the supply chain. Grabbing this opportunity China started to eat Indian market share in global market comprising Australia, Middle East, Europe and the US. Recent regulatory restrictions placed on slaughter of animals and on leather tanneries, impacting raw material availability

which in turn increases the price of raw hide.

So all the a s s o c i a t i o n i n v o l v e d in leather industry like Indian Leather P r o d u c t s Association, All India Skin and Hide T a n n e r s a n d Merchants

Association (AISHTMA) feels that the government should have consulted all stakeholders before taking the decision on banning slaughter of animals. In short, leather and leather footwear export industry are

facing challenges. Apart from this internal environment the external environment also not good. Europe which is the biggest destination of India’s footwear exports has now weak consumer sentiment and drop in the British Pound due to exit from

BREXIT is some of the external hurdles facing by the industry. Ultimately

export figures also seeing a decline as the major players in the export

is leather footwear. But we can see a boom in the domestic market is, a healthy growth driven by increasing footwear demand. The recent control in growth, overall, the outlook on the industry is stable. Currently, India’s per capita consumption is 1.6 pairs per

person as opposed to 6 pairs per person in developed economies

and as the economy develops, there is significant growth potential for the domestic demand to expand, due to the changing consumer preferences, growing middle class, increase in working class population, and higher disposable income. The market is likely to see healthy improvement, once the impact of demonetisation and GST wanes out, and these players are likely to report better credit matrix. www.forevernews.in

B A N N E D

06

History of leather in IndiaLeather goods and products have al-

ways been used by man for many millen-nia as a tool of luxury, protection, comfort, utility, fashion, and warmth. The Indian love affair with this highly versatile and useful material dates back almost five thousand years. Today, Leather is still re-garded as a symbol of prestige and well-being.Mashak’s (Water sacks made of leath-er) were widely used in India in the olden days

The First documented evidence of leather appears in the Hindu holy scrip-tures of the Vedas. The Rig-Veda has doc-umented the use of Leather ‘Mashaks’ or sacks as early as 3000 B.C. as well as bot-tles. Straps and bands were manufactured with leather and bags, sails were also made of the same materials. In fact, the writings also talk about the great-sage Agasthya and one of the excerpts men-tions him saying the words “I deposit the poison in the solar orb like a leather bottle in the house of vendor of spirits “. Refer-ences have also been made to the use of leather articles in the law books of Sankhya and Likhita that date back to 2000 B.C. The use of words such as char-manta, charmapath, varatra, chasabandha which can be found in old Sanskrit litera-ture indicate that straps, bands, and strings of leather were in common use back then, depicting the historical value of leather and it’s nearly immortal novelty value.A sketch of Marco Polo’s arrival in India

The first-person accounts of the intrep-id explorer Marco-polo also serve as a periscope into the early beginnings of the

leather manufacturing industry in the 1800s. In his accounts, he mentions that “The curing of hides and the manufacture of leather were two of the most important of Gujarat 42 industries. Every year a number of ships went to Arabia laden with the skins of Goats, Oxen, Buffalos and other animals. The leather was used for sandals and was cleverly worked into red and blue sleeping mats exquisitely inlaid with figures, birds, and beasts and skilful-ly embroidered with gold and silver wire”. Trade was also carried out between Guja-rat and the neighbouring foreign state through the famed ‘Silk route’. Uttar Pradesh in India occupied a predominant position in the making of finely crafted ‘Joothis’ and leather wear for the Mugha-ls and the elitist society of the Mughal Court. In the South leather formed one of the items of trade between the South In-dian states and the Greek and the Roman kingdoms of Europe. The leather-making activities were mainly in the hands of the village Chamars then and were sufficient to meet the local needs. International ex-port started later on after the year 1880.In 2017, Indian Leather accessories are exported the world over

The twentieth century marked a new period in the trade history of the Indian leather industry. During 1900-1914, the export scene was dominated by Calcutta and Madras with the former exporting raw goods and the latter tanned ones. In 1912-13, the total export of hides/skins amounted to INR 8 crore as against INR 4 crore from Madras. This was because 17 of the 22 organized tanneries were in Ma-dras and the rest remained scattered in Bengal, Bihar, Orissa, and Bombay. The

outbreak of World War II gave an impetus to the development of leather and leather goods industry in India. While in 1913-14 only 25 large units, employing 2,753 workers, were established, by 1941, the number of units had increased to 114 and the workers to 26, 056. Before 1947, though the British had shown consider-able interest in leather manufacturing in India and had even established some chrome tanning units in Bengal. Accord-ing to a recent survey, there are 2091 man-ufacturing units currently in the country out of which 1803 units are in the small-scale sector and 288 are large-scale units to cater to the needs of an ever-growing

and demanding population.Leather making is an art that is timeless

and is woven into the fabric of our great country. Through the ages, kingdoms have come and gone, wars have been fought and independence has been achieved by our great country and the leather industry along with the legacy of leather making has survived through it all. Nearly five thousand years after the first leather article was made in this country, Saddles India wishes to continue to carry on the legacy, imparting the passion and craft that has been handed down from generations for many more years to come.

Courtesy - saddlesindia

INDIA INTERNATIONAL LEATHER FAIR Chennai 2nd February 2019

Italy comes with a big businessChennai: Foreign players are in large numbers to take part in the 34th India International Leather Fair and Italy has come with a big bang this time, it can be said. Compared to the previous fair where there were more than 30 companies from Italy, this time there were more than 50 companies. It undoubtedly is said to be the player that has taken largest space in this three day mega event. Italy has a strong presence in machines extensively used in leather industry and they want to expand that, said Mario Pucci, international relations director with National Association of Manufacturers of Footwear, Leather Goods and Tanning Technologies.

Stressing about importance of Indian market he said the business they have with India is about 20 million euros every year. This is quite a significant number for them. However, Indian leather industry is facing issues with reards to

pollution, shoe industry here is facing stiff competition from the products of many other countries, should these issues be resolved the business between the two countries in leather segment can move at a faster pace, he said. Italian Trade Commissioner with Embassy of Italy in New Delhi Francesco Pensabene said Italy’s strong innovative capabilities, sizeable domestic and international market, high acceptance of ‘Made in Italy’ brand are some of the factors that have helped growth of Italy in the leather segment over the years.

At the global level, Italy is the largest exporter of leather machinery with an export size of 440 million euros. It also had 41 percent of share in global exports in calendar year of 2017, he said. A few other representatives from Italian companies said that high growth potential that Indian leather exports have, favourable investment climate

have given rich business prospects for Italian companies. The big point is that Indian leather industry is said to have expand significantly with a growth target of 50 percent in exports from 2016 to 2020, said a representative. The per capita consumption of footwear

in India is projected to increase and total domestic consumption is said to be reaching five billion pairs by 2020, factors like these offer rich business prospects for Italian companies to target, said the representative.

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Francesco Pensabene Italian Trade Commissioner with Embassy of Italy in New Delhi with Deepak Kumar, ED, ITPO

Germany looks towards India

Chennai: The 34th India International Leather Fair has offered lot of prospects in business for India. Foreign players have come in large numbers to take part in the three day mega event of the leather industry, DAGroup of Germany is one of them that is looking big towards India. The company is into offering automation solutions for the leather industry.

Director of marketing with DAGROUP Thomas Brinkhoff said market here is growing at a quick pace which is why India assumes a great significance for their company. We have specialised machines that can be handled automatically. Automatic sewing machine, CNC template machine which can be set to design pre-sewing standardised leather parts are some of our products that already have a presence in India, their latest offering is Qondac Industry solution 4.0. Using this solution we can connect upto 1500 workplaces and analyse them in realtime. It can also communicate and send instructions to workers at workspots, he said.

We are in discussions with three to four companies who have expressed interest in this solution. Once the solution has takers we can consider expanding it, while they already have dealers for their machines that are used in garment and leather upholstery, textiles, shoe sewing in India. While three percent of their sales is from India currently, the expect about seven percent growth year-over-year in the next few years. Speaking about their future roadmap for India, Thomas said they aim to bring innovative future oriented technology along with Internet of Things to this country.

It is interesting to note that a consortium of 15 companies are taking part in this fair under the banner of Federal Ministry of Economic Affairs, Germany. Carina

Mazzucato, special advisor from Government of Germany said they have positive response from exhibitions held in India in the past, we could garner a business around 50 billion USD previously. This time we are expecting to have more business in India, she said. They are also looking forward to have strategic alliance with Indian companies on the lines of technology transfer and commercial.

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07INDIA INTERNATIONAL LEATHER FAIR Chennai2nd February 2019

Leather changes its texture based on the environment

As leather contains pores, it changes in texture and appearance depending on what environment it is in. In a fairly humid environment, leather becomes softer as it soaks up the moisture that’s in the air so therefore, a dry environment makes the leather much tougher. It also lasts longer if it is kept away from water for a longer duration

An average person is wearing four articles made of leather everyday

Think about it. When people

get ready for work every morning, they wear their clothes, maybe put on a belt (or not), wear their shoes, put on their watch strap and of course carry their wallet or a purse which 8/10 times is made out of leather. This is the single most used commodity on the market, in the world.

White Leather is the most difficult to produce

Leather in general is a very coarse and hard material. But this characteristic also has a downside to it as not all hides are easy to dye. Especially in case of white leather as the the dye is prone to cracking and does not set.

Amazing facts about leather

Thomas Brinkhoff, DAGROUP, Director of Marketing explaining about the automatic machine

08 2nd February 2019 INDIA INTERNATIONAL LEATHER FAIR Chennai