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ProductPresentationLeather IndustryIndian leather Products/Goods

2012

NITIN KUMAR SINGHForeign Trade Development Centre

BATCH: July, 2012 (Evening)

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India is the largest livestock holdingcountry - 21% large animals and 11%small animals.

A source for 10% world leatherrequirement.

About 2.50 million workforce (30%women)

Annual production value is over U$ 4billion.

Annual export value is over U$ 2 billion

Export growth CAGR 8.20% (2000-04). Promising technology inflow and FDI.

High priority to occupational safety andwork environment.

Compliance to environmental

standards Immense potential for future growth

(domestic as well as export).

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Leather Footwear

Footwear Components (ShoeUppers, Soles etc.)

Leather Garments Leather Goods (Including Harness

& Saddlery, Leather Gloves etc.)

Finished Leather

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The reason for selecting this as product forthis presentation is that the product iswidely and easily available in the industryand India owns a good share of leatherproducts in the world trade.

According to Council for Leather Exports(CLE) officials, leather goods form animportant segment of India's leatherindustry. The production capacity isestimated to be 63 million pieces annually.

Some of the products that aremanufactured in the country include trunks,suitcases, vanity-cases, executive-cases,briefcases, school satchels, traveling bagsand luggage, hand bags, shopping bags,

wallets, purses, pouches, passport andcredit card holders, diary covers, leatherbelts, caps. The country also producesleather upholstery items such as sofa andcar seat covers.

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Predominantly, most of the

manufacturing units for leather goodsare located in cities like Kolkata,Chennai, Mumbai, Kanpur, Bangaloreand Pondicherry.

Kanpur is popularly known as theLeather City of the World. Kanpurleather traders export leather goodsin large volumes throughout theworld. These massive amounts ofleather products are shipped to NewDelhi and other major cities in Indiaby the Kanpur leather traders. Fromthese places, they are exported toother nations of the world. Kanpur

leather traders are involved inmanufacturing, exporting, andsupplying of all types of finishedleather products.

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India could well become a globalsourcing hub for leather goodsand accessories.

India is the fifth largest exporterof leather goods and accessories

in the world.

India is the fifth largest exporterof leather goods and accessoriesin the world.

The Foreign Trade Policy goal isto double the share in the worldexport in next 5 years.

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The way to earn more profit is to make

sale in large quantities and to sale inlarge quantities the price should beminimum and competitive as well.Therefore, the only make maximumprofit is to give the best to the

customers at the lowest possible price,which will eventually increase the salesvolume as well as the demand for theproduct in the industry or the worldtrade.

the industry is expected to attain a sizeof $5.4 billion by 2014 from thecurrent level of $3.8 billion.

he industry is witnessing 13-15 percent growth at present, this pace mayslow down in the months ahead due tothe crisis in western markets.

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Quantity (number of shoes) = 5000

aw Materialost

5,000 X 20 1, 00,000

abor Cost 5,000 X 10 50,000

verhead Cost 5,000 X 2

10,000

dministrativeffice Overheads

5,000 X 1 5,000

ackaging andabeling

5,000 X 1 5,000

rofit Margin5%)

42,500

orwardingxpenses 5,000 X 0.50 2,500

ocumentation 2,000

xport Creditsurance

3,000

isc/Inspectionxpenses

2,500

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Advertisements o the website Creation of website

Participation in the trade fairs

Approaching agents (or Export

through agents)

Business visits to foreign markets

Opening overseas office

Follow-up on enquiries circulatedby export promotioncouncils/chamber of commerceor other trade promotionagencies

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USA Germany

UK

Italy

Hong Kong

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Packaging and Labeling Focus on Augmented Products

Research and Development

Discounts

Innovation with uniqueness