SUBSIDY SCHEME

Subsidy scheme for Leather Industry Integrated Deve o!ment of Leather Sector "IDLS# The scheme is aimed at enabling existing tanneries, footwear, footwear components and leather products units to upgrade leading to productivity gains, right-sizing of capacity, cost cutting, design and development simultaneously encouraging entrepreneurs to diversify and set up new units The financial assistance under the Scheme will be investment grant to the extent of 30% of cost of plant and machinery for SS !0% of cost of plant and machinery for other units "i#e# non small scale units$ sub%ect to ceiling of &s#'0 la(h for technology up gradation )modernization and)or expansion and setting up a new unit# The rate of assistance would be * !0% for all units "both SS and +on-SS $ above &s#'0 la(hs sub%ect to ceiling of &s#! crore #

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+ow the promotion of footwear is done by organizing the fairs# 1ollowing fairs are organized by ndia to promote the footwear industry
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ndia Trade 2romotion 3rganisation " T23$ organized the !4th edition of ndia nternational 5eather 1air " 51$ in /hennai during 6anuary 37 to 1ebruary 3, !073# The fair was organized in close collaboration with /ouncil for 5eather 8xports "/58$, /entral 5eather &esearch nstitute "/5& $, ndian Shoe 1ederation " S1$, ndian 1inished 5eather 9anufacturers and 8xporters :ssociation " 1598:$, 1ootwear -esign 0 -evelopment nstitute "1-- $ and# ndian 1ootwear /omponents 9anufacturers :ssociation " 1/39:$

2.)ILGF 2013 The 18th edition of the International Leather Goods Fair (ILGF), organised by the India Trade Promotion Organisation (ITPO) in collaboration with the o!ncil for Leather "#$orts ( L") and the Indian Leather Prod!cts %ssociation (ILP%), held from 1& to 1' (arch )*1+ at the (ilan (ela om$le# in ,ol-ata

+.)IGLF, a /!siness to /!siness fair, was organi0ed to $romote e#$orts of leather goods from this $art of the co!ntry and also it $ro1ided a $latform for the com$lementary sectors of leather goods ind!stry

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Growing competition will see innovation become key to differentiating between products in the market and gaining consumers. Players are innovating around materials, design, etc in order to impart varying attributes to the footwear-like insoles that can modulate the heat released, soles to which varying weight may be attached to vary the stamina of the workout, etc. Nike has launched a new line, Nike Flyknit. The shoe has a sock attached within. Further, the warp and weft of the shoe s te!turised knit opens up the possibility for interesting colour combinations Sources * http://www.business-standard.com/india/news/footwear-industryexpands-steps-into-non-metro-mkts/4590 4 ** http://artic!es.economictimes.indiatimes.com/"0##-##""/news/$04" 990%#%footwear-industry-footwear-store-re!iance-footprint ***http://www.fastcodesi&n.com/#''909 /nike-un(ei!s-its-bi&-newparadi&m-shoes-knit-!ike-socks Swot ana!ysis S;3T :nalysis of export of ndian footwear ST&8+.T<S, 8xistence of more than sufficient productive capacity in tanning# 8asy availability of low cost of labour# 8xposure to export mar(ets# 9anagements with business bac(ground become =uality and environment conscious# 2resence of =ualified leather technologists in the field# /omfortable availability of raw materials and other inputs# 9assive institutional support for technical services, designing, manpower development and mar(eting# 8xporter-friendly government policies# Tax incentives on machinery by .overnment# ;ell-established lin(ages with buyers in 8> and >S:# ;8:?+8SS8S,

5ow level of modernization and up gradation of technology, and the integration of developed technology is very slow# 5ow level of labor productivity due to inade=uate formal training ) uns(illed labor# <orizontal growth of tanneries# 5ess number of organized product manufacturers#

5ac( of modern finishing facilities for leather# <ighly unhygienic environment# >nawareness of international standards by many players as maximum number of leather industries are S98s# -ifficulties in accessing to testing, designing and technical services# 8nvironmental problems# +on availability of =uality footwear components 5ac( of fresh investment in the sector# >neconomical size of manufacturing units# /ompetition among units vying for export orders leading to undercutting# 5ittle brand image# 2oor labor productivity# 5ac( of awareness about consistent in plant training and retraining- nconsistent =uality high re%ection rate 5ow machine and material productivity# 5ac( of =uality %ob wor( units -elayed deliveries ;ea( support infra- structure for exports

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:bundant scope to supply finished leather to multinationals setting up shop in ndia# .rowing fashion consciousness globally# >se of information technology and decision support software to help eliminate the length of the production cycle for different products 2roduct diversification - There is lot of scope for diversification into other products, namely, leather garments, goods etc# .rowing international and domestic mar(ets# 8xposure to newer mar(ets through 1airs) @S9s &etain customers through =uality supplies and timely deliveries :im to present the customer with new designs, infrastructure, country 0 company profiles# >se of modern technology 8xhibit strengths in manufacturing, for example, strengths in classic shoe manufacturing, hand crafting etc# -e-reservation of the footwear sector#

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8ntry of multinationals in domestic mar(et# Stiff competition from other countries#"The performance of global competitors in leather and leather products indicates that there are at least ' countries viz, /hina, ndonesia, Thailand, Aietnam and @razil, which are more competitive than ndia#$ +on- tariff barriers - -eveloping countries are resorting to more and more non B tariff barriers indirectly# mproving =uality to adapt the stricter international standards# 1ast changing fashion trends are difficult to adapt for the ndian leather industries#

5imited scope for mobilising funds through private placements and public issues, as many businesses are family-owned#

Source4htt!566foot7earsinfo ine,tri!od,com6e8!ort9im!ort,htm

Em! oyment

n a recent study carried out by +9//, it was highlighted that total employment in this sector would amount to !#' million "30 percent of which are women$# 1ootwear industry provides employment to the uneducated population - C0 percent of employment is represented by uns(illed wor(ers doing table wor( operation in the assembly line# 5arge employment opportunities on the input side - minority community and low caste people have their sole source of livelihood from collecting carcasses, s(inning dead animals and tanning leather# The potential for employment is across all s(ills to the tune of semi-s(illed and uns(illed labourers - D! percentE technical supervisory, shop floor - F percentE entrepreneurs, senior managers and technologists - 7 percent#

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Major ethnic footwear according to their production regions are discussed below: Indian State Gujrat Rajasthan Karnataka/ Maharashtra !unja"/ #ar$ana #imanchal !radesh %#!& 'adakh/ 'eh (ttaranchal/ (ttarakhand Ethnic Footwear Name Bharwadi Desi Joda Mojari Kolha uri Jooti !hulla !a"u Shoe 'um"a/ Mocha

'ercentage of Share of Leather 'roducts in E8!ort 'erformance "122:42;$# G/redit, /ouncil for 5eather 8xports, http,))www#leatherindia#org)H

3utdoor footwear grew over 7C% year-on-year to over IDD0 million for the first five-months of !073

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The global footwear mar(et is expected to reach I7D' billion by !07' 9ar(et growth is predicted to rebound as consumer confidence builds in the postrecession economy 1uture growth of ndian footwear industry in ndia will be oriented towards the 8uropean and the >S mar(ets# Technology partnerships with ma%or merchandising houses in >S: and mar(et leaders in 8urope are decided advantages in the integrated developmental plan of ndia# nvestment bac(ed technology support for footwear component industry is being sought to be outsourced# :s footwear retailing in ndia remain focused on menJs shoes, there exists a plethora of opportunities in the exclusive ladiesJ and (idsJ footwear segment The 1ootwear industry has potential to provide employment across all sections of the economy ndustry estimates of employment potential 3 la(h %obs in next 3 years#

# #Source5 /58, http,))www#leatherindia#org