Study of Indian Leather Industry-2003 Version

INDIAN
LEATHER
INDUSTR
Y Submitted by,
AHSAN JAVED
ROLL NO. BM-A-20
POST GRADUATE DIPLOMA IN
BUSINESS MANAGEMENT
Submitted to,
DR. SHAMSHER
YMCA BUSINESS SCHOOL
PRICING AND
DOCUMENTATION
INDIAN LEATHER INDUSTRY
ACKNWOLEDGEMENT
“FOR EVERY OPPORTUNITY MAY GOD BE

THANKED”
I am very thankful to our teacher Dr. Shamsher for

his great assistance to make the successful
accomplishment of the project. Through his able
guidance and knowledge-based interactions, we have
learnt a lot.
I am also thankful to my friends and colleagues for their
support and endurance while preparing this project.
I would like to thank all the people who have directly or
indirectly helped me in completing this project, as and
when I required.
2
AHSAN JAVED
PREFACE
The project Indian Leather Industry has been

carried out with a view point of understanding the
role of Leather Industry in the Indian Trade and
Indian economy.
As per the objective of the project, I have tried to
explain, analyze and interpret the role of Leather
sector in Indian as well as in international trade.
3
TABLE OF CONTENTS
CHAPTE TOPIC PAGE

R NO.
 Acknowledgement 02
 Preface 03
 Executive Summary 08
 Objectives Of The Study 10
1. INTRODUCTION TO LEATHER
INDUSTRY:
 An Overview 11
 History Of Leather 12
 World Scenario 14
 Environmental Aspects for Leather 17
Products
2. THE INDIAN LEATHER INDUSTRY:

 Indian Scenario 18
 Composition Of Indian Leather Exports 20
 Strengths Of Indian Leather Sector 21
Export Potential:
 India’s Export Of Leather And Leather 22
Products For Five Years
4
 Import Scenario 25
 Major Importing Countries Of Indian 26
Leather And Leather Products
 Analysis Of India’s Export Potential 29
 Strategies For Indian Leather Sector 32
 Major Issues Affecting The Sector 35
Export Performance:
 Major Highlights 37
 Country-Wise Analysis 39
 Trend In Major Importing Countries Of 41
Leather Products
 Port-Wise Export Performance 42
44
SWOT Analysis of the Indian Leather
Industry
3. GOVERNMENT ROLE IN INDIAN

LEATHER INDUSTRY:
 Prospects For Indian Leather Exports 45
 INDAIN Leather Development Program 47
(Implementation During 11th Fine Years
Plan)
 Supplement To Foreign Trade Policy 51
2004-2009 Announced On 26th
February, 2009
 Relief Measures Announced By 54
Government Of India To Exporters
 Government Support – Policies 57
 Leather Industry Tariffs 58
4. LEATHER INDUSTRY-TRADE
ORGANIZATIONS:
5
 Major Production Centres 60

 Leather Institutes 62
 Council For Leather Exports 64
 Main Markets 66
 International Leather Organizations 67
5. PROMOTION AND MARKETING OF

INDIAN LEATHER INDUSTRY:
 Entry Into The Market: Basic 71
Consideration
 Recent Marketing Efforts To Promote 74
The Indian Leather Industry
 International Leather Fairs In India - 75
2008-09
 Connecting Indian Leather To The 77
World - Cle At International Fairs/BSMs
 List Of Road Shows Organized / To Be 78
Organized In Overseas Countries
 Role Of Exim Bank In Promoting Indian 79
Leather Sector
6. EXPORT PROCEDURES AND

DOCUMENTATION RELATING TO
INDIAN LEATHER INDUSTRY:
 Export Documents 80
 Documents Related To Goods 83
 Certificates Related To Shipment 85

 Documentation 86
 Dutiable Shipping Bills 88
 Documents Related To Payment 89
6
 100% E.O.U 96
 Export Procedure 98
 List Of Documents Required To Be 103
Submitted By The Exporter To The
Various Authorities, Organization And
Agents
7.
FINANCING:
 Pre- Shipment Finance 106
 Post –Shipment Finance 109
 Procedure 110
8. FUTURE PROSPECTS OF INDIAN

LEATHER INDUSTRY:
 Leather Industry Targets $7 Billion 111
Exports By 2011
 Integrated Leather Development 112
 Leather Sector Impact-Interim Budget 113

2009-10
 Conclusion 115
 Weaknesses of Indian leather indusrty 116
 Remedial measures 121
 Impacts of current recession on Indian 123

leather industry
7
 Leather industry glossary 126

 Leather products 144
 Leather Exporters in India 155
 Indian Leather Manufacturers 158
EXECUTIVE SUMMARY
The basic objective of undertaking this project was to

study the role of Leather Industry in Indian economy, to
examine the export potential of leather products, to
analyze the various Documents for findings out the
adequacy and precision of export facilities by financial
institutions and the role of Indian Government in Indian
leather sector.
I collected the data using various primary and secondary

sources. (The sources of data collection have been
mentioned at required chapters in my report).
8
The Leather Industry is a significant segment of the

foreign trade in India. India ranks eighth among the
leather producing countries in the world. The industry is
labor intensive.
The Indian leather industry is provided with institutional

infrastructure support through premier institutions like
Council for Leather Exports, Central Leather Research
Institute (Chennai), Footwear Design & Development
Institute (Noida), National Institute of Fashion Technology
(New Delhi), etc in the areas of technological
development, design and product development and
human resource development.
The various phases of export are offer and receipt of
confirmed orders, production and clearance of the
products for exports, shipment, negotiation of document
and realization of export proceeds and obtaining various
export incentives.
9
OBJECTIVES OF THE STUDY
1. To study the role of Leather Industry in Indian

economy.
2. To examine the export potential of leather

products.
10
3. To analyze the various Documents for findings out

the adequacy and precision of export facilities by
financial institutions.
4. To explain the role of Indian Government in Indian

Leather Sector.
5. To suggest any improvements necessary in the

existing Leather Industry.
CHAPTER ONE
INTRODUCTION TO LEATHER
INDUSTRY
THE LEATHER INDUSTRY – AN OVERVIEW:

11
The leather industry occupies a place of prominence in the Indian

economy in view of its massive potential for employment, growth
and exports. There has been an increasing emphasis on its
planned development, aimed at optimum utilization of available
raw materials for maximizing the returns, particularly from
exports.
Indian leather industry today has attained well merited

recognition in international markets besides occupying a
prominent place among the top seven foreign exchange earners
of the country.
There came the long awaited dusk to the complacence of the

Indian manufacturers,(the village leather industry in particular)
When the long slammed doors of global markets were opened to
the leather industry. As already project by various economic
wizards, the leather manufacturers met challenge with a renewed
vigor and started capturing markets like Germany, U.S, Italy, U.K.,
and France. The very fact that a major market like U.S. has been
chosen to build up positive image for the Indian leather products
and to promote joint ventures adds one more feather in the cap
of leather industry in presenting a strategy so remarkable.
“Leather Fashion”- A Hot Tip:

When one talk of leather products coupled with their bulk exports,
naturally the buzzword “fashion” comes in question. In order to
survive in market already filled with competitors, it is
indispensable for an exporter to be at par with the latest fashion
development in the country in which he is exporting the goods.
When the fashion speaks for itself, it can play a stimulating role
as spearhead of an entire industrial sector .A search for light,
purity, clear lines has been acclaimed at the basis for fashion in
the leather products. Elegance is the back with the timeless,
thorough bred city –dwellers-inspirations that will characterize
this look. City fashion has new focal points in this new trend
towards elegance. Talking about the contemporary fashion, one
12
cannot ignore the timeless crocodile and python prints in elegant

cameo tones have a slightly old fashioned look that is now very
fashionable. The traditional grained leather, caviar, sharkskin,
lizard, clusters and fabrics prints are Omni present, with two-tone
effect and high shine. Thus with the coming back of such age old
and traditional taste in leather products, one cannot clearly
defined that this is the era of renaissance in the Indian.
The leather industry has undergone a dramatic transformation

from a mere exporter of raw materials in the sixties to that of
value added finished products in the nineties. Policy initiatives
taken by the Government of India since 1973 have been
instrumental to such a transformation. In the wake of
globalization of Indian economy supported with liberalized
economic and trade policies since 1991, the industry is poised for
further growth to achieve greater share in the global trade.
HISTORY OF LEATHER
The primitive man, even more than 7000 years ago, made and
used leather goods. He dried fresh skins in the sun, softened
them by pounding in animal fats and brains, and preserved them
by salting and smoking. Of course, the products were crude,
made for protection than as fashion.
The Egyptians and Hebrews developed around 400 BC, the
process of vegetable tanning that involved simple drying and
curing techniques
Under the Arabs during the middle Ages, the art of leather
making became quite sophisticated. Morocco and cordovan
leathers were in great demand.
The ancient puppet theatre in the southern India used primarily
leather dolls. The tradition continues even today.
Following the industrial revolution in Europe, power driven
machines were introduced to perform operations such as
splitting, fleshing, and dehairing. The chemical tannage were
introduced towards the end of 19th century
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COMMON LEATHERS:
 cattle, including calf and ox

 sheep and lamb
 goat and kid
 equine animals, including horse, mule, and zebra
 buffalo
 pig and hog
14
WORLD SCENARIO:
WORLD LIVESTOCK POPULATION:

Hides and skins are the basic raw materials for the leather
industry, which originate from the source of livestock. There was
an upsurge in the number of bovine animals and goats and kids
during 2007-2008, while population of heap and lambs was on a
decline. Developing countries accounted for around 78% of the
total population of bovine animals and 93% of world population of
goats and kids.
World bovine animal’s population stood at 1,529 million heads in
2008. India had the largest number of bovine animals (283 million
heads) with a share of 19% followed by Brazil (13%), China (9%)
and USA (6%). World sheep and lambs population stood at 1,079
million heads in 2008. With a total population of 170 million
heads, China had a share of 16% in the world sheep and lambs
population. India (6%) lagged behind at third position, with a
population of 62 million heads. World goats and kids population
stood at 807 million heads in 2008. China has the highest
population of goats and kids, which stood at 195 million heads in
2008. Although in 1990, India had the highest population of goats
and kids (21% of the total), it was overtaken by China in 1995 and
the gap between the two countries has been widening.
WORLD RAW HIDES AND SKINS PRODUCTION:

World production of raw hides and skins was nearly 7 million
metric tonnes, of which production of bovine hides and skins
alone accounted for 90% in 2008. Developing countries are the
major producers of raw hides and skins.
China played a significant role in turning developing countries as
the major source of global imports of raw hides and skins.
WORLD LEATHER EXPORTS:

15
World leather exports grew moderately, by a CAGR of 7.3%, from

US$ 46 billion in 2000 to US$ 61 billion in 2004. World leather
exports can be categorized in to raw hides and skins (40%),
leather articles (49%) and fur skins (11%).
China, Hong Kong, Italy, USA and France are major exporters of
leather in the world. World leather articles exports increased by a
CAGR of 8.06%, from US$ 22 billion in 2000to US$ 30 billion in
2004. China constitutes 34% of the total leather articles exports.
Hong Kong (17%), Italy (11%) and France (9%) are other major
exporters. India’s exports of leather articles have stabilized
around US$ 1,033 million in 2008.
16
WORLD LEATHER IMPORTS:

World leather imports can be classified in to raw hides and skins,
leather articles and fur skins, with a share of 38%, 55% and 7% of
the total world leather imports, respectively. Leather articles are
predominantly imported by USA, Spain, UK and Belgium; whereas
China, Mexico, Turkey and Romania are mainly into imports of
raw hides and skins. Hong Kong, USA and Italy are chief
importers of fur skins. World imports of leather articles are
estimated to have grown marginally from US$ 27 billion in 2000
to nearly US$ 34 billion in 2008. USA, the largest importer of this
product, is predominantly captured by China.
China’s share in USA’s import of leather articles has increased
gradually, from 54% in 2000 to 70% in 2008.
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ENVIRONMENTAL ASPECTS FOR LEATHER

PRODUCTS:
Manufacturers who produce environmentally sound products will
enjoy a competitive advantage in all business relations. The pitch
has to be to successfully emphasis the environmental soundness
of the product in the information to the buyers since major
attention is being paid to the increasing role of the environmental
regulations. Therefore, the manufacturers have to view their
products and production processes not just by looking at
traditional aspects like price, quality, customer demands, etc. but
also at the environment. Environmentally sound production,
consequently, opens new market opportunities.
The regulations concerning the ban on the use of Azo Dyes and
PCP need to be specially taken care of. Use of both these inputs
has been banned due to their carcinogenic nature. Likewise, for
compliance with the German packing regulations, Indian
suppliers have to stick to the basic principle that packaging
material be reusable and recyclable. Consumers may have a
tendency to choose products, which are easily recognizable as
such and are labeled according to legal stipulations. The
hallmark for these environment-friendly products is normally
referred to as ‘ECO-LABEL’. This indicates that the product is
manufactured in consonance with the environmental regulations.
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CHAPTER TWO
THE INDIAN LEATHER INDUSTRY
INDIAN SCENARIO:
With about 15% of the world livestock population, India
accounted for only 8% of the leather production in 2008.The
Indian leather industry consists of 42,000 small-scale industry
(SSI) units, which account for 75% of the total production.
Nearly, 2.5 million people earn their livelihood from this sector. A
survey by Central Leather Research Institute (CLRI) estimated
that about 1,600 tanneries were present in India in 2000. The
concentration of tanning industries is mainly in Tamil Nadu, with a
share of 52%. Other states where tanning industry is
concentrated include West Bengal and Uttar Pradesh. Small scale
19
sector accounts for large processing capacity ranging from 70-

87% for different leather products.
INDUSTRY AT A GLANCE:
 The Indian leather Industry occupies a place of prominence
in the Indian economy in view of its substantial export
earnings, employment generation and growth.
 There has been increasing emphasis on its planned
development, aimed at optimum utilization of available raw
material for maximizing the returns particularly from
exports.
 The export of leather and leather products increased
manifold over the past decades. The export increased from
Rs. 290 mn in 1956-57 and from Rs. 30760 mn in 1991-92 to
Rs. 140007.33 mn in 2007-08.
 Today the industry ranks 8th in the export trade in terms of
foreign exchange earnings of the country.
 The composition of export of leather and leather products
from India has undergone a structural change during the last
three decades, from merely an exporter of raw material in
the sixties to that of value added products in the nineties.
The value added finished products presently constitute
around 80% of the total export from the Industry, which was
mere 7% in 1956-57.
 India accounts for a share of 2.62% in the global leather
trade during 2006. With the exclusion of non-leather
footwear, this is slightly higher at 3.41%.
 India is the largest livestock holding country -21% large

animals and 11% small animals.
 A source for 10% global leather requirement
 Annual production value US$ 5 billion
 Annual export value US$ 3.47 billion
20
 Export growth CAGR 11.91% (5 years)

 About 2.50 million workforce (30% women)
 Promising technology inflow and Foreign Direct Investment
 Top priority to occupational safety and work environment
 Meticulous concern for consumer safety
 Compliance to environmental standards
 Enormous potential for future growth (domestic as well as
export) .
COMPOSITION OF INDIAN LEATHER

EXPORTS:
Composition of Indian leather exports has undergone a radical
change, from being a mere exporter of raw hides and skins, to a
status of an exporter of value added leather products. From 1991-
92, India has been exporting only finished leather because of
export restriction on semi finished leather. Total leather and
leather manufactures exports stood at Rs.10, 286 crores in 2004-
05. Leather footwear is the largest component of leather exports,
with a share of 26%.
ESTIMATED PRODUCTION CAPACITIES:
ITEM CAPACITY
Hides 65 million pieces
Skins 170 million pieces
21
Leather Footwear 909 million pairs

Leather shoe uppers 100 million pairs
Non-leather footwear 1056 million pairs
Leather Garments 16 million pieces
Leather Goods 63 million pieces
Industrial Gloves 52 million pairs
Saddlers & Harness 12.50 million pieces
Source: CLRI
STRENGTHS OF INDIAN LEATHER

SECTOR:
 Own raw material source – 2 billion sq ft of leather produced
annually
 Some varieties of goat / calf / sheep skins command
premium position
 Strong and eco-sustainable tanning base
 Modernized manufacturing units
 Trained / skilled manpower at competitive wage levels
22
 World-class institutional support for Human Resources

Development and R & D activities
 Presence of support industries like leather chemicals and
finishing auxiliaries
 Presence in major markets – Long Europe experience
 Preferred sourcing by several international brands – Pierre
Cardin, Versace, NEXT, Hugo Boss, Tommy Hilfiger,
Florsheim, Clarks, K shoes, DKNY, Liz Claiborne, Guess etc.
 Strategic location in the Asian landmass
EMERGING STRENGTHS
 Design development initiatives by institutions and
individuals.
 Continuous modernization and technology up gradation.
 Economic size of manufacturing units.
 Constant human resource development programme to
enhance productivity.
 Increasing use of quality components.
 Shorter prototype development time.
 Delivery compliance.
 Growing domestic market for footwear and leather articles.
EXPORT POTENTIAL:
INDIA’S EXPORT OF LEATHER AND LEATHER

PRODUCTS FOR FIVE YEARS:
23
India’s Export was growing at a CAGR of 11.91% in the last 5

years. Global leather import trade was growing at a CAGR of
8.77% during last 5 years.
YEARS
2003-04 2004-05 2005-06 2006-07 2007-08
CATEGORY (VALUE IN MILLION US$)
Finished Leather 555.71 607.73 636.27 724.00 766.93
Footwear 767.73 910.77 1045.24 1236.91 1475.83
Leather
Garments 301.08 329.44 333.30 309.91 343.99
Leather Goods 539.21 585.72 660.17 706.28 784.95
Saddlery &
Harness 52.71 61.71 77.52 82.33 105.81
Total 2216.45 2495.37 2752.50 3059.43 3477.52
% Growth 18.20% 12.58% 10.30% 11.15% 13.67%
Source: DGCI&S
24
The leather industry, one of the major foreign exchange earners

of the country recorded significant growth since the beginning of
the decade. Today the share of the value added finished products
in the total exports from leather sector are 80% as against 20% in
1970s.
Export Scenario for the last 5 Years
25
% Share of Leather Products in Export

Performance (2007-08):
IMPORT SCENARIO:
26
INDIA’S IMPORT OF RAW HIDES & SKINS AND

LEATHER FOR FIVE YEARS:
YEARS
CATEGORY 2003-04 2004-05 2005-06 2006-07 2007-08
(VALUE IN MILLION US$)
Raw Hides & Skins 49.80 50.21 58.21 69.58 84.12
Leather 171.01 212.70 233.11 288.85 336.56
TOTAL 220.81 262.91 291.32 358.44 420.68
MAJOR IMPORTING COUNTRIES OF INDIAN

LEATHER AND LEATHER PRODUCTS
27
THE COUNTRY-WISE PERFORMANCE FOR FIVE

YEARS:
(Value in Million US$)
CAGR
2003- 2004- 2005- 2006- 2007- GROWT
COUNTRY 04 05 06 07 08 H%
GERMANY 329.82 350.79 363.24 410.08 488.72 10.33%.
ITALY 285.02 258.23 317.04 413.35 479.04 13.86%.
UK 250.65 313.69 345.54 359.84 414.32 13.38%.
USA 251.58 290.42 318.36 317.59 306.69 5.07%.
HONG KONG 226.97 247.68 252.15 279.72 267.93 4.23%.
SPAIN 161.23 176.70 200.18 185.78 212.07 7.09%.
FRANCE 109.82 140.00 143.72 174.04 196.17 15.60%.
NETHERLAND
S 57.75 65.68 82.95 100.82 133.37 23.27%.
UAE 37.39 48.03 52.34 62.55 74.53 18.82%.
PORTUGAL 34.07 38.38 42.20 49.92 56.06 13.25%.
BELGIUM 24.24 35.10 40.20 43.01 54.53 22.46%.
CHINA 22.87 34.51 38.71 42.52 51.90 22.73%.
AUSTRALIA 32.03 36.41 43.22 39.38 49.74 11.63%.
DENMARK 24.66 30.84 40.46 42.30 49.08 18.77%.
SWEDEN 19.61 23.49 25.82 29.01 38.81 18.60%.
CANADA 25.59 29.70 34.80 32.17 35.90 8.83%.
KOREA REP. 25.47 30.98 34.45 36.28 28.80 3.11%.
SOUTH
AFRICA 20.64 21.71 24.38 35.23 27.49 7.42%.
SWITZERLAN
D 16.64 18.35 21.54 21.92 25.47 11.22%.
AUSTRIA 19.12 21.23 23.38 21.79 25.43 7.39%.
GREECE 21.11 19.53 21.94 24.22 23.38 2.58%.
28
SAUDI
ARABIA 10.61 12.08 14.63 15.77 15.53 9.99%.
JAPAN 10.37 10.57 12.37 12.26 15.41 10.40%.
RUSSIA 11.33 8.05 11.49 17.18 14.95 7.17%.
INDONESIA 8.42 10.22 12.66 12.17 14.90 15.33%.
FINLAND 4.23 6.62 7.72 9.87 14.33 35.66%.
IRELAND 4.08 5.77 4.56 5.46 8.07 18.59%.
NEW
ZEALAND 4.22 3.28 5.64 6.05 5.60 7.32%.
OTHERS 166.91 207.33 216.81 259.15 349.30 20.27%.
TOTAL 2216.45 2495.37 2752.50 3059.43 3477.52 11.91%.
Source: DGCI & S
29
Country-wise Export Performance

(2007-08):
30
ANALYSIS OF INDIA’S EXPORT POTENTIAL:

India’s major export markets for leather handbags are USA,
Germany, UK and Spain. In UK and Spain, Italy is the top
exporting country of leather handbags. However, China has
overtaken Italy and emerged as major exporter in markets like
USA, Canada, Hong Kong and Russia. India has lot of potential in
these markets, as it has unique advantage of economies of scale
and capability of producing niche products.
Footwear is a critical segment for the Indian leather industry as

this is expected to be the engine of growth for the Indian leather
sector. Currently, the trend in export of Indian footwear has been
encouraging; however the trend for footwear components exports
has been declining. India’s exports of
footwear components have dropped from US$ 238 million in
2000-01 to
US$ 164 million in 2004-05. Top importers of leather footwear
uppers in the world are China, United Kingdom and Canada.
World leather garments exports have increased over the years.
USA, Germany and Japan were the largest importers of leather
garments in the world in 2004. India was placed
among the top three exporting countries of leather garments in
these markets. Further, India is the largest sourcing partner of
leather garments to Spain and Italy, which are the major markets
for Indian leather garments. India’s other major export markets
are Germany, USA and France. But, India must be cautious of
China, as its unit price of leather garments is cheaper than that of
India.
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INDIAN LEATHER FOOTWEAR INDUSTRY

India is the world's second largest producer of footwear; its
production estimated over 700 million pairs per annum. At about
US $ 300 million per year, footwear accounts for 18 percent share
of total exports of leather exports.
Various types of shoes produced and exported from India include

dress shoes, casuals, moccasins, sports shoes, horacchis, sandals,
ballerinas, and booties. Major production centres are Chennai
(Madras), Delhi, Agra, Kanpur, Mumbai (Bombay), Calcutta and
Jalandhar.
Most of the modern footwear manufacturers in India are already

supplying to well establish brands in Europe and USA. The large
domestic market and the opportunity to cater to world markets
make India an attractive destination for technology and
investments. Equally relevant is it for the footwear components
industry, at this juncture, it is posed for real growth and
diversification.
INDIAN LEATHER GOODS INDUSTRY

Items produced by this sector include, in addition to bags,
handbags, hand gloves and industrial gloves, wallets, ruck sacks,
folios, brief cases, travel ware, belts, sports goods, upholstery and
saddlery goods.
A surfeit of modern units in Chennai, Kanpur and Calcutta

employing skilled human resources and equipped with modern
and sophisticated machinery account for a diversified range of
superlative small leather goods including bags, purses, wallets,
industrial gloves etc. made of quality leathers of cows, sheep,
goats and buffaloes. The products meet the requirement of bulk
buyers and consumers in Europe, USA and Australia.
32
The major market for Indian leather goods is Germany, with an off
take of about 25 per cent of the leather goods produced in India
followed by USA, UK, France and Italy. With products ranging from
designer collections to personal leather accessories, this sector
has a share of 20.53 per cent in the leather industry, while
maintaining an average growth rate of 11 per cent recorded in
the last five years.
INDIAN SADDLERY INDUSTRY

India is one of the largest producers of saddlery and harness
goods in the world. The saddlery industry was established in the
19th century primarily to cater to the needs of military and police.
From then on initiatives were taken to develop, the industry and
today there are over 150 units in the organised sector, out of
which approximately 105 are 100% export oriented units.
Kanpur, in the state of Uttar Pradesh, is a major production centre

for saddlery goods in India accounting for more than 95% of the
total exports of saddlery items from India. Kanpur, because of its
specialization in tanning and finishing of buffalo hides is the only
centre in the country where harness leather, which is major input
for saddlery industry, is manufactured.
The export of saddlery and harness items has showed an annual

growth rate of about 40% reaching DM 64 million during 1998-99.
The major importers of Indian saddlery are Germany, USA, UK,
France, Scandinavia, Netherlands, Japan, Australia and New
Zealand.
INDIAN LEATHER GARMENTS INDUSTRY
The Leather Garment Industry occupies a place of prominence in

the Indian leather sector. The product classification of leather
garments comprise of jackets, long coats, waist coats, shirts,
33
pant/short, children garments, motorbike jackets, aprons and

industrial leather garments.
Indian leather garments, which entered the world market only in

the mid-eighties with exports of Rs. 15 crores in 1997-98, account
for about Rs. 1530 crore in 1997-98. The major export
destination of leather garments from India is Germany. In 1997,
German imports of leather garments aggregated DM 1786 million
of which DM 304 million worth of imports went from India. India,
China and Turkey were the major suppliers of leather garments
for the German market, as they accounted for about 78% of the
market share.
Among the three major exporting nations of leather garments,

India maintains a similar level of market share of about 20%, in
both German and EU markets.
Other markets for India include Italy, U.K., U.S.A. France, Spain
and Netherlands. Recently, successful attempt had been made
for exports to Denmark, Switzerland and Canada.
STRATEGIES FOR INDIAN LEATHER

SECTOR
The Indian leather industry is targeting over US$ 5 billion exports
by 2010 and is expected to add about additional 1 million direct
and indirect jobs during this period. At present, the industry
employs 2.5 million people directly and indirectly.
SHIFTING OF MANUFACTURING BASE:
Major world tanning firms are in the process of shifting their

manufacturing base to developing countries due to high wage
levels and strict environmental norms in developed countries.
Factors such as availability of leather, production know-how,
34
processing of shoes work in India’s favour. India could effectively

use these advantages to augment its share in global production
and exports.
GOVERNMENT SUPPORT:
Technology up gradation and Modernization of the entire leather

Value chain should be given priority. Recently, the Government
has approved Rs. 290 crores for modernization and technology up
gradation programme.
STRONG PRODUCTION BASE:

The industry should lay emphasis on design and technology,
quality and innovation and economies of scale. Skill development
for the manpower engaged in the sector is vital for enhancing the
export potential of this sector.
INVESTMENT BY LARGE CORPORATES:

Indian leather industry is dominated by household and small scale
sectors. Corporate presence would enhance the capability of
producing quality leather products. The large capacity would also
bring down the unit cost and increase the competitiveness in
international markets.
NEW MARKETS:
Diversification of export markets is another important strategy for

Indian leather industry. Consolidation in new markets such as
Croatia, Slovakia and Serbia would sustain the export growth
momentum for the Indian leather industry. Imports of leather
articles by these countries have increased in the range of 20-
30% in a period of five years.
35
NEW TRENDS:
The industry needs to keep itself abreast with latest fashion

trends in the sector. It is observed that Italian buyers pay
attention not only to the quality of the leather products but also
to the accessories used in the garments. It is imperative that
adequate care is taken about the packing material.
DIVERSE MARKETING TECHNIQUES:
India needs to adopt aggressive marketing techniques in order to

endure global competition. The industry could undertake business
delegation to secure overseas investments and technology
partnerships, besides building brand image. Developing countries
like India should have two pronged marketing strategy of
simultaneously targeting both low price and high quality markets,
rather than the traditional strategy of being a low price-low
quality supplier.
ENABLING INFRASTRUCTURE:
The development of the Calcutta Leather Complex is a positive
sign as all amenities are available at one place. Such exclusive
leather complexes could be developed in other major production
centres. Improvements in efficiency of ports, internal transport,
customs procedures and supply chain management are
necessary for augmenting the productivity and exports in this
sector.
FAIRS AND EXHIBITIONS:
It is imperative that Indian exporters participate in fairs and

exhibitions organized in the international market. It could serve
as a good platform to showcase our products. Lack of information
36
about Indian leather manufacturers also acts as a hurdle for

international buyers.
TRAINING FACILITIES:
Training programmes should enable the industry to foresee and
adapt to changing trends and technology. It is imperative that the
staff is skilled and well qualified to train the students. Further,
programmes need to be conducted to make Indian exporters
aware of different standards and requirements in the global
market to ensure that Indian exports do not get rejected due to
environmental norms.
MAJOR ISSUES AFFECTING THE SECTOR

The issues that are hindering the export growth of the Indian
leather industry are as follows:
ENVIRONMENTAL ISSUES:
37
The leather industry is traditionally considered as a polluting

industry in the tanning and finishing stages of the production
chain. Global standards set by importing countries affect the
entry and increase the cost of market access to products of
developing countries. Usage of many chemicals has been banned
by various countries. The product specifications for leather are
constantly under review, leading to greater stringency.
IMPACT OF PETA:
Campaigns by NGOs, such as People for Ethical Treatment of

Animals (PETA), related to cruelty against animals have led to
boycott of Indian leather products by many foreign companies.
WTO RELATED MATTERS:
With the advent of WTO, the average and bound tariffs for
manufactured products have fallen in the developed countries.
However, the average and bound tariffs for leather products
remain relatively high. Many developed countries are
implementing Technical Barriers to Trade (TBT) as Non-Tariff
Barriers to restrict leather exports from developing countries like
India.
COST ESCALATION:
Leather exporters have to meet domestic as well international

environmental norms. Testing and certification requirements add
to the However, it is observed that small supplier firms may not
be able to comply with stringent environmental standards. High
costs of compliance impose real economic costs on firms.
CHINESE COMPETITION:
38
Chinese leather industry ranks top on the raw material resources,

product yield and import and export trade in the world. China is
one of the major competitors to India’s leather sector as it has the
capability to produce large
volume at low price. Chinese leather exports have increased by
three-fold after its entry into WTO.
THE INDIAN LEATHER INDUSTRY IS

ORGANIZED AS FOLLOWS
 Tanning & finishing
 Footwear & Footwear Components
 Leather Garments
 Leather Goods (bags, wallets, belts, gloves, accessories)
 Saddlery and harness articles
EXPORT PERFORMANCE
39
Analysis of Export Performance of leather and leather products

during
April-October 2008 vis-à-vis April- October 2007
1.0 INTRODUCTION:
As per DGCI& S monthly export data, the export of leather &
leather products for the period April-October 2008 touched US$
2250.79 million against the performance of US$ 2024.62 million
in the corresponding period of last year, registering a positive
growth of 11.17% in Dollar Terms. In rupee terms the export
touched Rs.98058.07 million against the previous year’s
performance of Rs.82370.01 million showing a positive growth of
19.05%.
A Statement showing the Product-wise Export

performance during April-October 2008 vis-à-vis April-
October 2007 is given below:
(Value in Million Rs)

CATEGORY APR-OCT APR-OCT
2007 2008 % VARIATION
Finished Leather 19298.36 20384.69 5.63%
Leather Footwear 26372.66 31939.30 21.11%
Footwear Components 6565.61 7207.17 9.77%
Leather Garments 8484.11 11381.91 34.16%
Leather Goods 18039.54 23276.98 29.03%
Saddlery & Harness 2488.15 2654.77 6.70%
Non-Leather Footwear 1121.58 1213.25 8.17%
TOTAL 82370.01 98058.07 19.05%
Source : DGCI &S
40
(Value in Million US$)

CATEGORY APR-OCT APR-OCT
2007 2008 % VARIATION
Finished Leather 474.35 467.90 -1.36%
Leather Footwear 648.23 733.12 13.10%
Footwear Components 161.38 165.43 2.51%
Leather Garments 208.54 261.26 25.28%
Leather Goods 443.40 534.29 20.50%
Saddlery & Harness 61.16 60.94 -0.36%
Non-Leather Footwear 27.57 27.85 1.02%
TOTAL 2024.62 2250.79 11.17%
1.1 MAJOR HIGHLIGHTS:

 Export of Footwear (leather, footwear components & non-
leather footwear) has increased from US$ 837.18 million
during April-October 2007 to US$ 926.40 million in April-
October 2008, registering a growth of 10.66%
 In Dollar terms, leather footwear has alone grown by
13.10% and footwear components by 2.51% and Non-
leather footwear by 1.02%.
 In Dollar terms, export of Leather Garments has increased
by 25.28% and Leather Goods by 20.50%. Export of
Saddlery & Harness and Finished Leather marginally
declined by 0.36% and 1.36% respectively.
41
2.0 COUNTRY-WISE ANALYSIS

• The major markets for Indian leather products are-
 Germany (13.63%)
 Italy (13.30%)
 UK (11.61%)
 USA (9.48%)
 Hong Kong (7.08%)
 France (5.72%)
 Spain (5.72%)
 Netherlands (4.21%)
 U.A.E., (2.58%)
 Denmark (1.69%)
 Belgium (1.55%)
 Australia (1.41%)
42
These 12 countries together accounts for nearly 77.98% of

India’s total leather products export.
• Overall positive growth is seen in markets like-
o Germany 9.51%
o USA 11.98%
o UK 8.68%
o Italy 10.20%
o France 21.26%
o Spain 11.37%
o Netherlands 27.73%
o Australia 12.55%
o Denmark 39.89%
43
• Overall decline is seen in markets like-
o Hong Kong 9.29%,

o Russia 15.86%,
o Greece 14.55%,
o South Africa 23.25%.
44
3.0 TREND IN MAJOR IMPORTING COUNTRIES OF

LEATHER PRODUCTS
(In Million US$)

Country April-Oct April-Oct % Variation
2007 2008
Germany 280.06 306.71 9.51%
Italy 271.71 299.42 10.20%
UK 240.37 261.23 8.68%
USA 190.61 213.44 11.98%
France 106.18 128.76 21.26%
Spain 115.64 128.79 11.37%
Netherlands 74.18 94.75 27.73%
U.A.E. 42.29 58.08 37.32%
Australia 28.15 31.69 12.55%
Hong Kong 175.66 159.35 -9.29%
45
Source: DGCI & S
4.0 PORT-WISE EXPORT PERFORMANCE

As per the Port-wise compilation for the period April-October
2008, export of leather and leather products from all the Regions
are showing positive growth.
(Value in Million
US$)
APR- APR- %
Region OCT Share in OCT Share in Variation
Total Total
2007 Export 2008 Export
Souther
n 865.20 42.73% 909.55 40.41% 5.13%
Western 382.98 18.92% 433.01 19.24% 13.07%
Eastern 276.55 13.66% 332.66 14.78% 20.29%
Norther
n 226.43 11.18% 261.93 11.64% 15.68%
Central 46.51 2.30% 72.47 3.22% 55.81%
Others 226.96 11.21% 241.18 10.72% 6.27%
Total 2024.62 100.00% 2250.79 100.00% 11.17%
Note: This is purely based on port-wise compilation and does not

reflect the accurate regional performance:
Source: DGCI& S
46
47
SWOT ANALYSIS OF THE INDIAN LEATHER

INDUSTRY
STRENGTHS
• High Growth
• Ready availability of highly
skilled and cheap manpower
• Large raw material base THREATS
OPPORTUNITI • Policy initiatives taken by the
ES Government Major part of the industry
• Capability to assimilate new is unorganized
• Rising
technologies and handle large Limited scope for
potential in
projects mobilizing funds
the domestic
Continuous emphasis on product through private
market
development and placements and
• Growing
design up gradation. public issues
fashion
(many
consciousnes
businesses are
s globally
family-owned)
• Use of
Difficulty in obtaining
information
bank loans
technology
resulting in high
and decision
cost of private
support
borrowing
software to
Stricter international
help WEAKNESSES
standards
eliminate the • Lack of warehousing support
High competition from
length of the from the government
East European
production • International price fluctuation
countries and
cycle for • Huge labour force resulting in
other Asian
different high labour charges
countries
products • Lack of strong presence in the
Lack of communication
• Use of e- global fashion market
facilities and
commerce in • Unawareness of international
skills
48
direct standards by many players

marketing
CHAPTER THREE
GOVERNMENT ROLE IN INDIAN

LEATHER INDUSTRY
49
PROSPECTS FOR INDIAN LEATHER EXPORTS:

Exports has brightened in the recent year as India has emerged
natural and alternate supplier of leather and leather goods to the
global market. India has one of the highest concentrations of
cattle population and produces close to 10% of global leather
every year. Within the export basket, finished leather exports still
constitute a significant 24%. Footwear as is known is the main
driver of growth with more than 41% of the share in the export
market.
India with its advantage in the availability of raw material and

large number of people available in the employment sector with
its low manufacturing cost provides ample opportunities for
entrepreneurs to invest and grow. Government of India policy of
allowing 100% FDI has opened the gate for global leather
entrepreneurs to explore this leather rich country.
Special Economic Zones (SEZs) are created in India for producing

leather products. These zones are deemed foreign territories
where exports and imports are duty free. A foreign investor can
own his factory in these zones and could repatriate 100% profit.
There are huge concessions in taxes with five year holiday on the
profit tax (income tax) and another five year with lesser
percentage of tax as compared to units outside the SEZ. Plots are
available in SEZ for investments
Joint ventures and business collaborations are the known

business models in Indian leather sector. As the consumption in
the domestic market is increasing day by day, India is poised to
import large quantities of leather from abroad. It would be
beneficial for the overseas brand owners to forge business
partnerships with the existing manufacturers in India with or
without equity participation and manufacture goods for domestic
market. Large numbers of living examples of JVs are there for
anyone to see.
50
Government of India is facilitating the development of

infrastructure by promoting leather product parks. These parks
are expected to have a complete link in the supply chain and they
are expected to increase the production of leather goods and
products in the next five years.
51
INDIAN LEATHER DEVELOPMENT

PROGRAMME (ILDP)
IMPLEMENTATION DURING 11TH FIVE YEAR PLAN
(2007-12)
Leather Sector is the 10th largest manufacturing sector in India

and it plays an important role in Indian economy in view of its
substantial overall output, export earnings and employment
potential. The Leather Sector employs 2.5 million people with
majority from weaker sections of the society and about 30%
women. The Sector is dominated by small and medium
enterprises. In order to augment raw material base, enhance
capacity, address environmental concerns, human resource
development, attract investment and global marketing of Indian
Leather, the Central Government has approved implementation of
the Indian Leather Development Programme (ILDP) for the 11th
Five Year Plan comprising of the following components :-
I. INTEGRATED DEVELOPMENT OF LEATHER SECTOR

(IDLS) (Outlay Rs. 253.43 crores): This is a 10th plan
scheme and is being continued in the 11th plan. The scope of
the scheme is enhance to include new units. The scheme
would provide assistance in the form of Investment grant @
30% to SSI and 20% to Non-SSI upto grant of Rs. 50 lakh.
Assistance will be provided @ 20% if the grant amount is
above Rs. 50 lakh within the ceiling of Rs. 2 crores. The
disbursement above Rs. 25 lakh would be made in four
equal installments.
52
II. LEATHER TANNING COMPLEX AT NELLORE (Outlay Rs.

29 crores): This project was proposed to be implemented
during the 10th Five Year Plan. However, the project could
not take off for want of decision from the Government of
Andhra Pradesh. This project aims to increase the capacity
of the tanning sector. The project is proposed to be
implemented during the 11th Plan. Government of Andhra
Pradesh has transferred the required land to LIDCAP, an
institution expected to implement the project. A provision of
Rs. 29 crores is approved during 11th plan as assistance to
develop the infrastructure of the tanning park.
III. ESTABLISHMENT OF BRANCH OF FDI (NIFDT) AT

FURSATGANJ (OUTLAY RS. 7.17 CRORES): The institute
would be a branch of the footwear design and development
institute, Noida and would be equipped with facilities of the
latest technologies to provide training of international
standard with latest technology. The assistance from the
Department to the project is Rs. 13.53 crores out of which
Rs. 6.36 crores has been released during the 10th plan
period. The balance of Rs. 7.17 crores has also been
released in December 2007 i.e., during the plan period.
IV. FOOTWEAR COMPLEX (OUTLAY RS. 3 CRORES): this is

an going scheme of the 10th plan and aims to build a
footwear complex near Chennai in 153.65 acres and provide
infrastructure facilities for housing large footwear
manufacturing units. Infrastructure development towards
design and testing centre, display centre, warehousing,
common power plant etc. would be provided. State
Industries Promotion Corporation of Tamil Nadu Ltd.
53
(SIPCOT), a State Government undertaking is the

implementing agency. The Central Government has released
Rs. 11 crores during the 10th plan and the balance of Rs. 3
crores would be released during the 11th Five Year Plan
period.
V. SADDLER DEVELOPMENT (OUTLAY RS. 10 CRORES):

Harness and saddler comprise a wide range of products. The
industry had identified up gradation and development of
skilled manpower, standardization and development of
components accessories and tools, development of iow cost
indigenous machinery, and improvement in production
techniques and processes as major areas of concern.
International Institute of Saddlery Technology and Export
Management (Kanpur), a special purpose vehicle constituted
under the overall guidance and superintendence of IIT
(Kanpur) would continue to provide skilled human resources
to meet the of the sector and function as an R & D base for
the industry. In order order to achieve the above stated
objectives an allocation of Rs. 10 crores has been approved
for the XI plan period.
VI. SUPPORT TO ARTISAN (OUTLAY RS. 40 CRORES): there

are various clusters in Indian making traditional footwear
and other leather goods. The aim of component is to
promote the clusters at various forums as they are the
integral part of rural Indian economy and have potential for
generating local employment and export. The artisan
clusters (both rural and urban) would be supported for
enhancing their designs as per the changing trends and
fashion, corpus for revolving funds and obtaining bulk raw
material, grant base livelihood support, marketing support
54
linkages. The broad objective of this component would be to

ensure better and higher returns to the artisans.
VII. HUMAN RESOURCE DEVELOPMENT (OUTLAY RS. 60

CRORES): HRD mission would target the non-traditional
potential workforce in the rural areas. The project would
train and prepare the individuals in the rural areas to be fit
to work in medium to large industrial units that are likely to
be set up. Up gradation of skills of persons already employed
in the sector besides training for trainers/ supervisors would
also be undertaken. The scheme would lay stress on skill
development and technical development especially in
cutting and stitching. The training proposed under the
scheme would be output linked where at least 75% of those
trained would be placed in the industry.
VIII. UP-GRADATION OF FACILITIES OF FDDI AND

ESTABLISHMENT OF OTHER SUCH INSTITUTES AND
CENTRES (OUTLAY RS. 300.07 CRORES): In leather
sector, about 3,800 people are trained every year. Against
this supply, the demand of the industry is around 1,00,000
skilled person every year for the next five years. In order to
meet the growing demand of more skilled person the up
gradation of existing facilities has become essential. Rs 10
crores, would be provided for the up gradation of existing
FDDI campus at Noida. Assistance would be provided in the
form of one-time grant for the creation of capital assets and
permanent infrastructure and no recurring cost would be
provided.
It is proposed that at least three new FDDI campuses each in

Tamil Nadu, West Bengal and Haryana would be established
55
at a cost of Rs. 96.69 crores each during the 11th Plan period
to meet the growing demand of leather industry.
IX. UPGRADATION OF INFRASTRUCTURE FOR

ENVIRONMENT PROTECTION IN LEATHER SECTOR
(OUTLAY RS. 200 CRORES): Leather industry and tanning
activity in particular, all over the world is linked to
environmental concerns. An allocation of Rs. 200 crores has
been made in 11th five year plan to address these concerns.
Projects for meeting environment concerns would be funded
with 50% grants from central Government, 15% from State
government and remaining 35% from the industry. The
entire Operation and maintenance costs would be borne by
the industry.
X. MISSION MODE (10 CRORES): This programme envisages

attracting investments into the sector and includes provision
for research, programme support, surveys and concurrent
evaluation etc in leather field. Besides, provisions has also
been made for cost on account of advisory and consultancy
services in respect of various projects under ILDP being
implemented in the 11th Five Year Plan.
56
SUPPLEMENT TO FOREIGN TRADE POLICY

2004-2009 ANNOUNCED ON 26TH
FEBRUARY, 2009
Union Minister for Commerce and Industry Shri Kamal Nath

announced the Supplement to Foreign Trade Policy 2004-09 on
February 26, 2009. The major benefits announced in this
supplement are given below:
PROMOTIONAL SCHEMES FOR LEATHER, TEXTILES

ETC.
 An amount of Rs. 325 Crores would be provided under

Promotional Schemes for Leather, Textile etc. for exports
made with effect from 1.4.09. The details of the promotional
schemes are expected to be notified in due course.
DEPB
 Duty credit scrips under Chapter 3 and under DEPB scheme
shall now be issued without waiting for realization of export
proceeds. The exporters shall be required to submit proof of
export proceeds realization within the time limits prescribed
by Reserve Bank of India. The issuance of these benefits
without BRC would be subject to a Bank Guarantee/LUT in
terms of Circular to be issued. This provision shall be
applicable for applications made on or after 1.4.2009.
ADVANCE AUTHORISATION
 Export obligation period against advance authorizations has
been extended up to 36 months in view of the present global
economic slowdown.
57
 Supply of an Intermediate product by the domestic supplier

directly from their factory to the Port against Advance
Intermediate Authorization, for export by ultimate exporter,
has been allowed.
 For Advance Licenses issued prior to 1.4.2002, the
requirement of MODVAT/CENVAT certificate dispensed with
in cases where the Customs Notification itself prescribed for
payment of CVD. This will help in closure of a number of
pending advance licenses.
 In case of Advance Authorization for Annual Requirement
where Standard Input-Output Norms are not fixed, the
provisions in Customs Notification have been amended in
line with Foreign Trade Policy.

PREMIER TRADING HOUSES

 At present, Govt. recognizes Premier Trading Houses based
on an export turnover of Rs.10, 000 crores in the previous
three years and the current year taken together. In view of
the prevailing global slowdown, the threshold limit for
recognition as Premier Trading House has now been reduced
to Rs.7500 crores.
OTHER FACILITATION MEASURES
 Re-imbursement of additional duty of excise levied on fuel

under the Finance Acts would also be admissible in respect
of EOUs.
58
 Re-credit of 4% SAD, in case of payment of duty by incentive

scheme scrips such as VKGUY, FPS and FMS, has now been
allowed.
 As per the existing procedure, applicants have to submit

individual invoices certified by the jurisdictional excise
authorities for claiming duty drawback claims. Further, for
getting refund of Terminal Excise Duty deemed export ER-1 /
ER-3 are required as documentary proof evidencing payment
of excise duty. A simplified provision has now been
introduced and exporters can now submit a Central Excise
certified statement in lieu of individual invoices and a
Monthly Statement confirming duty payment in lieu of ER-1/
ER-3, for the purpose of Deemed Export Benefits.
 Electronic Message Transfer facility for Advance

Authorization and EPCG Scheme established for shipments
from EDI ports w.e.f. 1.4.2009. Requirement of hard copy of
Shipping Bills dispensed with for Export Obligation
discharge.
In addition to the above, DGFT and

Department of Revenue provisions have
been aligned in following matters:
59
 Utilization of Duty Credit scrip allowed under Reward

Schemes of/ DEPB, of FTP for payment of duty under EPCG
Scheme.
 Notification of DFIA scheme aligned with FTP provisions.
 Department of Revenue shall issue necessary clarification

implementing provisions of FTP related to EOUs, thereby
allowing them to supply goods and services at Zero Duty to
authorized organizations notified for Zero Duty import.
RELIEF MEASURES ANNOUNCED BY

GOVERNMENT OF INDIA TO EXPORTERS:
The Government of India had earlier announced a package of
relief measures to the exporters on account of the losses suffered
by the exporters due to steep appreciation of Indian Rupee
against overseas currencies in the past 8-9 months. The relief
measures included upward revision of the DEPB Rates uniformly
for leather and leather products by 3%, reduction of the interest
rates on pre-shipment and post-shipment Rupee Export Credit by
2% for the period Apr. 1- Dec. 31st, 2007 for Leather Products and
10% reduction in ECGC Premium on Coverage Charges.
60
SERVICE TAX EXEMPTION ON CERTAIN

SPECIFIED SERVICES:
The Department of Revenue, Ministry of Finance, Government of
India has issued a Service Tax Notification, dated Oct. 2007.
The Service Tax exemption has been granted on the

following services:
S. Taxable Services
No.
Classification Description
under
Finance Act,
1994
(1) (2) (3)
1. Section Services provided to an exporter by an
65(105)(d) insurer, including a re-insurer carrying on
general insurance business in relation to
insurance of said goods
2. Section Services to any person, by a port or any
65(105)(zn) person authorized by the port, in relation to
port services, in any manner;
3. Section Services provided by a technical testing and
65(105)(zzh) analysis agency in relation to technical testing
and analysis of said goods where such
technical testing and analysis is required to be
undertaken as per the written agreement
between the exporter and the buyer of the
said goods
4. Section Services provided by an inspection and
65(105)(zzi) certification agency in relation to inspection
and certification of export goods where such
technical inspection and certification is
required to be undertaken as per written
agreement between the exporter and the
buyer of the export goods
61
5. Section Services to any person, by other port or any

65(105)(zzl) person authorized by that port in relation to
port services, in any manner;
6. Section Services provided for transport of said goods
65(105)(zzp) from the inland container depot to the port of
export
7. Section Services provided for transport of said goods
65(105)(zzzp) from the inland container depot to the port of
export
 EXTENSION OF 2% INTEREST REDUCTION ON

RUPEE EXPORT CREDIT UP TO MARCH 31ST,
2008:
The Reserve Bank of India (RBI) vide Notification dated July
13,2007 announced 2% reduction in interest rates on pre-
shipment and post-shipment credit for the period Apr. 1 – Dec.
31, 2007 to exporters of certain products including Leather
Products. The RBI has now issued a notification dated Oct. 6,
2007 (copy enclosed) extending this benefit to exporters of
various products including leather products up to March 31st,
2008.
 PERMISSION OF INTEREST EARNING ON EEFC

ACCOUNT:
As members are aware, Exchange Earner’s Foreign Currency
(EEFC) accounts are currently permitted to be maintained in the
form of non-interest bearing current accounts.
62
The RBI has issued a Notification dated Oct. 6th, 2007 through
which exporters maintaining EEFC accounts are permitted to earn
interest on EEFC account to the extent of outstanding balances of
US $ 1 million per exporter. Members may note that this is a
temporary measure valid up to Oct. 31st, 2008. Accordingly, it will
now be possible for account holders to maintain outstanding
balances to the extent of US $ 1 million in the form of term
deposits up to one year maturing on or before 31st October 2008.
The rate of interest will be determined by the banks themselves.
GOVERNMENT SUPPORT – POLICIES
 The entire leather sector is now de-licensed and de-

reserved, paving way for expansion on modern lines with
state-of-the-art machinery and equipments.
63
 100% Foreign Direct Investment and Joint Ventures

permitted through the automatic route
 100% repatriation of profit and dividends, if investments
made in convertible foreign currency. Only a declaration to
this effect to the Reserve Bank is required.
 Promotion of Industrial Parks (one leather park in A.P; one
leather goods park in W.B; one footwear park in T.N. and one
footwear components park in Chennai)
 Funding support for modernizing manufacturing facilities
during Tenth Plan period 2002-07
 Funding support for establishing Design Studios
 Duty free import of all types of raw materials
 Duty-free import of embellishments and components under
specific scheme
 Concessional duty on import of specified machinery for use
in Leather Sector.
 Duty neutralization/remission scheme in place like DEPB and
Duty Drawback
 Liberal import-export of consumer products and
components
 Gradual lowering of import tariff - Peak Rate 10%
 Simplified import-export procedures, facilitating quicker
customs clearances
LEATHER INDUSTRY TARIFFS
64
THE DUTY PRESENTLY APPLICABLE ON RAW MATERIALS, CAPITAL

GOODS AND INPUT USED BY THE LEATHER & LEATHER PRODUCTS
INDUSTRY ARE BRIEFLY STATED BELOW:
The raw hides and skins falling under Customs Tariff Heading No.
41.01, 41.02 & 41.02 is exempted from import duty in accordance
with Chapter 41 of the Customs Tariff Act.
The import of wet blue chrome tanned leather, crust leather,

finished leather of all kinds including splits and sides thereof
exempted from customs duty in terms of CN 17/2001 vide SI No.
136. These are exempted from Countervailing Duty also.
Raw, tanned dressed fur skins etc., including lamb fur skins falling
under Chapter 43.01 & 43.02 have been exempted from Basic
Customs duty in terms of SI No. 137 of CN 17/2001.
265 specified machinery & equipments for use in leather &

leather products Industry are eligible for concessional import duty
of 5% as per List 6 of CN 17/2001. And these are also exempted
from levy of Countervailing Duty (CVD)
Certain leather chemicals, finishing axillaries, components,

consumables etc used in leather & leather products Industry are
eligible for concessional import duty 25% CVD equivalent to
Central Excise duty is leviable on such inputs. These are listed
under List 3A & 3B of CN17/2001 vide SI No. 159.
The import of saddle tree required for Harness & Saddlery goods
Industry and which fall under Sub Heading 3926.90 of the
Customs Tariff, is allowed at concessional duty of 5% in terms of
SI.No. 128 of CN 17/2001.
The import of fasteners and poly wadding materials and certain

other inputs are allowed duty free import by the manufacture-
exporters of leather garments to the extent of 3% of their
previous year’s export performance.
Tags, label, printed bags, stickers, belts, buttons or hangers,
65
imported by bona fide exporters, are exempted from duty in

terms of SI No. 130 of CN 17/2001.
Tanning extracts like wattle extract, quebracho extract etc are

allowed to be imported with 10% Basic Customs Duty. No
countervailing duty is leviable on Wattle Extract falling under
Chapter 3201.20. However, import of other vegetable tanning
extracts under Chapter 32 would continue to attract
countervailing duty of 16%.
4% Special Additional Duty of Customs (SADC) will continued to

levied on imports of all items. However, the imports under
Advance Licenses, DEPB Scheme, EPCG Scheme etc are
exempted from levy of Special Additional Duty of Customs,.
10% surcharge on the Basic Customs duty has been removed for
all the imports.
Leather chemicals and finishing axillaries, component,
accessories and consumables indigenously produced will be
subject to 16% Central Excise duty.
66
CHAPTER FOUR
LEATHER INDUSTRY-TRADE
ORGANIZATIONS
The Indian leather Industry occupies a place of prominence in the

Indian economy in view of its substantial export earnings,
employment generation and growth.
There has been increasing emphasis on its planned development,

aimed at optimum utilization of available raw material for
maximizing the returns particularly from exports
MAJOR PRODUCTION CENTRES:
The major production centers in India for leather and leather

products are located in:
SOUTH REGION
Tamil Nadu Chennai, Ambur, Ranipet,
Vaniyambadi, Trichy, Dindigul
Andhra Pradesh Hyderabad
Karnataka Banglore
NORTHERN REGION
67
Punjab Jalandhar
Haryana Ambala, Gurgaon, Panchkula and

Karnal
Delhi Delhi
EASTERN REGION
West Bangel Kolkatta
CENTRAL REGION
U.P. Kanpur, Agra
WESTERN REGION
Maharashtra Mumbai (Bombay)
LEATHER INSTITUTES
68
 Central Leather Research Institute (CLRI),Adyar,

Chennai 600020.
 Footwear Design and Development Institute
(FDDI),Noida 201301.
 National Institute of Fashion Technology (NIFT),
New Delhi 110016.
 Anna University, Sardar Patel Road, Guindy, Chennai
600025.
 Bharath Institute of Science and Technology, 173,
Agharam Road, Selaiyur PO, Chennai 600073.
 Dr. B.R. Ambedkar Regional Engineering College,
P.O., REC Jalandhar 144011.
 College of Leather Technology,Salt lake City,
Calcuttta 700091.
 Central Footwear Training Institute (CFTI), Agra.
 AVI School of Fashion and Shoe Technology,
S.C.O., 493-94, 2nd Floor, Sector 35-C, Chandigarh.
 Shoe Design Centre,5477/72, Kikarwala Chowk, Karol
Bagh, New Delhi 110005
 Central Footwear Training Institute (CFTI), 65/1,
GST Road, Guindy, Chennai 600032.
69
 Indian Institute of Leather Products (IILP), 102,

Mangalapuram, SIDCO Industrial Estate, Ambattur,
Chennai.
 Prototype Development and Training Centre
(PDTC), National Small Industries Development
Organization, Guindy Industrial Estate,
Ekkaduthangal, PO, Chennai 600097.
 VTA Institutes of Leather and Leather Products,21,
Kailashgiri Road, Udaendram, Vaniyambadi 635734.
 Muzaffarpur Institute of Technology,Muzaffarpur
842003.
 Priyadarshini Engineering College, Anna Salai,
Konamedu, Vaniyambadi, 635751, Vellore Distt.
 Harcourt Butter Technological Institute, Kanpur
208002.
70
COUNCIL FOR LEATHER EXPORTS

The council for Leather Exports was set up in July 1984.A non-
profit company registered under the Indian Companies Act, 1956,
the Council functions under the Ministry of Commerce,
Government of India. The council is entrusted with export
promotion activities and overall development of the Indian leather
industry. The Council’s activities also include promoting Foreign
Direct Investment and Joint Ventures in the Indian Leather
industry. The CLE serves as a bridge between Indian leather
exporters and buyers all over the world.
COUNCIL’S SERVICES TO THE INDIAN LEATHER

INDUSTRY:
 Collecting, Collating and disseminating world market

intelligence.
 Updating the information on global trends in fashion and
design, product development.
 Dissemination of information of commercial and
technological nature through seminars and magazines.
 Organizing participation of Indian exporters in international
fairs and buyer-seller meets.
 Sponsoring sales-cum-study teams and trade delegations.
71
 Inviting foreign experts for providing technological inputs to

Indian leather exporters.
 Organizing international leather fairs in India.
COUNCIL’S SERVICES TO OVERSEAS BUYERS INCLUDE:
 Serving as a focal point for disseminating information on

Indian manufacturers and exporters.
 Organizing visits of buyers’ delegations dealing with trade
information.
 Liaising with various international organizations dealing with
trade information.
 Providing trade and commercial information on Indian
leather industry
72
MAIN MARKETS
NORTH AMERICA
For leather jackets of high value these people are ready to pay
any price.
GERMANY
For shoes and upper shoe.
EUROPE
For valets, purses, hand bags and ladies item
CIS
For all products together more than 25% goes to these parts.
OTHER MARKETS:
DENMARK,
SAUDI ARABIA,
SOUTH AFRICA
73
LATIN AMERICA becoming strong markets for India.
INTERNATIONAL LEATHER ORGANISATIONS
U.S.A.
ALCA
The American Leather Chimists Association
c/o University of Cincinnati - Tanners Bldg, P.O.Box 210014
CINCINNATI, OHIO 45221-0014
E-mail: donmezk@email.uc.edu
FFANY
Fashion Footwear Association of New York
1414, Avenue of the Americas, Suite 203 NEW YORK, N.Y. 10019
The Fashion Footwear Association of New York, fondly known as
FFANY, is a non-profit organization. Our goal is to promote and
improve the general awareness and demand for fashion footwear
and related products and to serve as an advocate of the multi-
billion dollar footwear industry globally. FFANY represents 300
corporations, and 800 of the most prestigious footwear
brandnamesworldwide.
74
FFANY's primary purpose is to organize and implement 6

international trade shows a year in New York City. All arkets are
held at the Hilton New York located at 1335, Avenue of the
Americas at 54 th Street
FIA
Footwear Industries of America
1420 K street, NW suite 600 WASHINGTON, DC 20005
LLGMA
Luggage and Leather goods manufacturers of America Inc.
NSRA
National Shoe Retailers Association
Trade organisation representing independent shoe retailers.
7150, Columbia Gateway Drive, COLUMBIA, MD 21046
SSIA
Shoe Service Institute of America
Robert J. Galvin - Webmaster
12114 Old Line Center Waldorf, 20602 BALTIMORE, MD
SSIA is the Trade Association for the shoe repair industry in North
America. Founded in 1904, its members are wholesalers,
manufacturers and importers of shoe repair and shoe care
products and machinery.
VENEZUELA
CAFACA
Venezuelan Association of Manufacturers of Components

and Products for the Footwear Industry.
Av. San Felipe, Quinta Adina 65, La Castellana, CARACAS 1060
E-mail:cafaca@hotmail.com
CAFACA promotes the interests of its members both at a national
75
and international level and is developing an export programme

for the Venezuelan components sector. It is also sponsoring the
components fair EXPOCOMP 200.
VIETNAM
LEFASO VN
Vietnam Leather and Footwear Association

25, Ly Thuong Kiet Str. HANOI
E-mail: hhdg@hn.vnn.vn
Year of establishment: 1990
Vietnam Leather and Footwear Association (LEFASO VN) is a

social economic affiliated and voluntary organization representing
manufacturers, traders, technical and science researchers and
services suppliers engaged in the industry from all sectors of the
economy those are operating in Vietnam. The Association is
established and run on the principles of voluntary, equality and
mutual benefits among the members.
The Association has its own logo, stamp and account. Working
regulation of the Association has been approved by the Minister
of Industry.
Targets of the Association are to conduct economic affiliated

activities, designate and coordinate in action among the
members relating to manufacture, exportation, importation,
material supply, product consumption, etc… in the leather and
footwear business, aimed at taking fullest account of the existing
potential, improving product quality and social - economic effects
to the member enterprises, in the meantime, increasing
competitive edge in export markets and representing a voice for
the member's interests.
76
Vietnam Leather and Footwear Association has become an official

member of the Asian International Footwear Association since
1996. The Association plays a key role in promoting international
cooperation, providing technical - technological and training
support and giving related information.
Organization of the Association: The Executive Committee

includes 16 members representing all economic sectors involved
in the industry throughout the country. The Permanent
Committee consists of 7 members: Chairman, 05 Vice Chairman
and General Secretary. Secretarial group managed by the
General Secretary, help the Executive and Permanent Committee.
The Association is now having 90 members and new members are
continuing to join the Association
Vietnam Leather and Footwear Association looks forward to

having cooperation with all organization and companies at home
and abroad on the different areas of the industry.
VIETNAM LEATHER AND FOOTWEAR PRODUCERS

ASSOCIATION
Head Office: 26, Le Dai Hanh Str. HANOI
The Vietnam Leather and Footwear Producers Association is a

volunteer organization with more than 60 members of different
economic components in manufacturing and trading areas ;
leather, shoes, rubber, plastic, canvas, imitation leather and other
fields of activity concerned.
The association has relations with Leather and Footwear
Associations of many countries in the region and in the world.
The association has pleasure to get new members from the
country and abroad based on the principle of volunteer and
abiding by the regulations of the Association.
77
CHAPTER FIVE
PROMOTION AND MARKETING OF

ENTRY INTO THE MARKET: BASIC

CONSIDERATION
78
A potential supplier seeking to enter the market must ensure first

of all that he can compete with other suppliers on quality and
price. Before embarking on an export venture, the exporter must
be assured about his product and to which segment he wants to
serve. A delicate care of following points can go along a long way
is enabling the exporter to reach the right market.
 Segmentation of the market.
 Supplying to the upper most group-elite cream of the

society.
 Since the product is very expensive, the supplier cannot
compromise even on simple aspect which may
“deglamourize” the hide.
 The supplier should make many pieces since they are
exclusive – unique.
 Since the manufactures is a social trends setters, he has to
always keep ahead as he has to offer something new,
always i.e. to say that in the export market Change is
Constant.
 One should never think of reducing the price as for the
buyer, even if it is an exceptionally high price because the
buyer, here are abnormal buyers not normal buyers.
 One should never supply a very big quantity at any given
movement he should not supply more than 8-10 pieces
each month.
Large export organization particularly manufactures exporters
maintain a separate research development with qualify staff for
his purpose. In department collects information about foreign
market from all available sources and agencies. Even surveys are
conducted. The conclusion drawn from such research activities
79
are supplied to policies maker for forming short term and long
term marketing strategies, which play a decisive role in the
success of the whole marketing efforts which is very well
accepted at the government level and also at the level of
business at present.
Various official and all other agencies collect and publish market
information for the benefits of exporters, such information is
important in all types of research activities. In fact, research
activities, a lot of secondary information is available in export
marketing though official and non- official agencies in India. The
government has made elaborate institutional arrangement to
help exporters in the field of market intelligence. It is imperative
that before we sell or market the leather product in the
international market, we make a very close look and the intensive
about the various factors influencing the selling of the product.
Needless to say, that the study has to be in the light of such
factors pertaining to the importing country. Absolute care,
through sincerity, correctness and relevance of data, right
channels and perfect contacts alone can lead the exporter to
know the market well.
An exporter should thus, take care of the following points

while marketing the products:
 Climate
 Tradition
 Demand
 Government policy
 Competition
 Fashion
CLIMATE:
A careful study of the geographical condition and demand of the
country in which the goods to be exported enables the marketing
manager to trigger the right shot in matters international
business. The temperate belt in both the hemisphere is
considered as an ideal location for leather products.
80
TRADITION:
Tradition plays an important role in marketing the leather
product. However, this applies only to a few of the leather
products, such as shoes or the whole foot ware range in general
as regard other leather products such as jacket the impact of
tradition dampens.
DEMAND:
The need for the particular leather product in the country where it
is exported should be ascertained. The demand and supply
should be on even terms. If the demand is less then we might fail
to market our product successfully.
GOVERNMENT POLICY:
The most instances of different government policies in different
countries are that of quantity restraint or a quota restriction. In
most of the other countries where quantity restraint is applicable
it is the government which fixes the quota for a particular product
and the local suppliers do not suffers.
COMPETITION:
One of the intelligent ways of entering the export market in a
particular country with the level of quality and the price of the
competitors.
FASHION:
Fashion is one of the most important and to some extends, rather
inconvenient factor, which affects the selling of the leather
products. It is the most important because fashion trends and
fashion sensitivity are more apt in the U.S. and western European
countries. Coincidentally, leather product enjoys a good market in
these countries. Again, it is an inconvenient factor for an ordinary
exporter because of its flexibility. The fashion trends seem to
change every year and so-called fashion trends have an equal
urge to discard the things, which are out of fashion as they have
for embracing the things, which are in fashion. It is therefore, the
81
duty of the marketing manager to either stay or tune with the

latest fashion or created a new test for the consumer. The latter
one being difficult is not just impossible to be done with a careful
study of the previous marketing trends. Qualitative advertising
and sales promotion policies new test can be developed.
RECENT MARKETING EFFORTS TO

PROMOTE THE INDIAN LEATHER
INDUSTRY
 International Fairs & Buyer- Seller Meets.
 International Leather fairs continued to be an effective

medium of establish business relation with potential
overseas buyers.
 The council current year organize participation of Indian

leather exporters in 15 major international fairs. Several are
in European Union, USA and China.
 Buyer – Seller meets between Indian product exporter and

overseas importer in several countries like Spain, Portugal,
Brazil, Venezuela, Chile, Argentina, Australia, New Zealand,
Finland & Estonia.
82
INTERNATIONAL LEATHER FAIRS IN INDIA -

2008-09
S.N DETAILS OF PARTICULARS OF THE

PRODUCTS
o. THE FAIR ORGANIZER
India Trade Promotion
Leather Goods
Organisation Pragati
(like wallets, purses,
Bhawan, Pragati
Delhi hand bags, travel-
MaidanNew Delhi 110001.
International ware etc.,), Leather
Leather Fair Garments, Footwear
OrganisationPragati
Pragati (including non-
Bhavan, Pragati
1 Maidan New leather footwear),
Maidan,New Delhi - 110
Delhi Footwear
001(India)
Components,
Phone: 91-11-23378802,
Oct 16-18, Finished Leather,
23371965
2008 Accessories,
Fax: 91-11-23371869,
Saddlery & Harness
1492, 1493
items
www.dilfleatherfair.com
83
Leather Goods India Trade Promotion

( like wallets, purses, OrganisationPragati
hand bags, Bhawan, Pragati
India travelware etc.,) MaidanNew Delhi - 110 001.
International Leather Garments, India Trade Promotion
Leather Fair Footwear OrganisationPragati
Chennai, India ( including non- Bhavan, Pragati
2
leather footwear), Maidan,New Delhi - 110
Footwear 001(India)
Jan. 31- Feb. Components, Phone: 91-11-23371390,
3,2009 Finished Leather, 23371822
Accessories, Fax: 91-11-23371874,
Machinery and 1492, 1493
Chemicals www.iilfleatherfair.com
OrganisationPragati
Bhawan, Pragati
MaidanNew Delhi 110001.
International Leather Goods like India Trade Promotion
Leather Goods wallets, purses, OrganisationPragati
Fair Kolkata , bags, travelware, Bhavan, Pragati
3 India luggageware small Maidan,New Delhi - 110
leather goods , 001(India)
Feb. 22-24, footwear and leather Phone: 91-11-23371390,
2009 garments 23371822
Fax: 91-11-23371874,
1492, 1493
Email: ppy@itpo-online.com
www.ilgfleatherfair.com
84
CONNECTING INDIAN LEATHER TO THE WORLD -

CLE AT INTERNATIONAL FAIRS/BSMS
The Council for Leather Exports regularly organizes Group

Participation of Indian Member Companies in many leading
international leather product fairs and tradeshows.
In countries where there are no appropriate leather product fairs

but which have good potential for Indian leather products, the
Council organizes exclusive interactive Buyer Seller Meets
(BSM), taking the assistance of local agencies to market and
coordinate the event. The Government provides funding
assistance to the Council and to Exporters for participation in
Fairs & BSM's under the Market Development Assistance
(MDA) Scheme and the Market Access Initiative Scheme
(MAIS), subject to certain eligibility conditions.
WSA Show, Las Vegas, USA, Feb. 12-14, 2009
Magic Show, Las Vegas, USA, Feb. 16-19, 2009
Buyer Seller Meets in Saudi Arabia & Jordan during

Feb/March 2009
85
BTS Fair of Shoes, Leather & Leather Goods, Poznan,

Poland, March 9-11, 2009
ILM Winter Styles – International Leather Goods Fair,

Offenbach, Germany, March 20-22, 2009
Global Shoes Fair Dusseldorf, Germany, March 13-

15,2009
LIST OF ROAD SHOWS ORGANIZED / TO BE

ORGANIZED IN OVERSEAS COUNTRIES
BY THE CLE DURING 2008-09
• Madrid, Alicante SPAIN May 27-29, 2008
• Sao Paulo, Novo Hamburgo BRAZIL July 2-4, 2008
• Madrid, Elche SPAIN Nov 24-26, 2008
• Birmingham UK Feb 15-17, 2009 alongside the

Moda Footwear and Moda Accessories
• Milan, ITALY March 5, 2009, alongside the MICAM

and MIPEL Fair
• HONG KONG March 31- April 2, 2009, alongside

the APLF - Fashion Access & Materials Manufacturing &
Technology Fair
86
ROLE OF EXIM BANK IN PROMOTING

INDIAN LEATHER SECTOR
Export Import Bank of India (Exim Bank) has helped the leather
exporting units to modernize and upgrade their production
facilities, install pollution control and environmental safety
systems of internationally accepted standards and develop export
market for value added products through strategic export market
development plans.
Exim Bank implemented Agency Line of Credit and Export

Development Project, joining hands respectively with
International Finance Corporation (IFC), Washington and the
World Bank to support small and medium enterprises in the
leather sector.
87
CHAPTER SIX
EXPORT PROCEDURE AND

DOCUMENTATION RELATING TO
THE INDIAN LEATHER INDUSTRY
DOCUMENTATION AND PROCEDURAL

REQUIREMENTS
EXPORT DOCUMENTS:
88
Commercial documents
Regulatory Pre-shipment documents
COMMERCIAL DOCUMENTS:
Commercial documents are those which, by customs of trade, are
required for affecting physical transfer of goods and their title
from the exporter to the importer and the realization of export
sale proceeds.
14 out of 16 commercial documents have been standardized and
aligned to one another. Shipping order and bill of exchange could
not be brought within the fold of the aligned documentation
system because of their very different data elements and having
a very little in common with other commercial documents.
The commercial documents may be classified into:
 Principal documents
 Auxiliary documents
PRINCIPAL DOCUMENTS:
1. Commercial invoice
2. Packing list
3. Bill of lading
4. Combined transport documents
5. Certificate of inspection/quality control
6. Insurance certificate/policy
7. Certificate of origin
8. Bills of exchange and shipment advice
AUXILIARY DOCUMENTS:
1. Performa invoice
2. Intimation for inspection
3. Shipping instructions
89
4. Insurance declaration
5. Shipping order
6. Mate receipt
7. Application for certificate of origin
8. Letter to the bank for collection/negotiation of documents
REGULATORY PRE-SHIPMENT DOCUMENTS:

Regulatory pre-shipment export documents are those which have
been prescribed by different government departments/bodies in
compliance of the requirements of various rules and regulations
under relevant laws governing export trade such as export
inspection, foreign exchange regulations, export trade control,
customs etc.
There are 9 regulatory documents associated with the

pre-shipment stage of an export transaction and are as
follows:
1. Gate pass-I/Gate pass-II (prescribed by central excise
authorities)
2. AR4/AR4A form (prescribed by central excise authorities )
3. Shipping bill/bill of export (prescribed by central excise
authorities )
• For export of goods
• For export of duty free goods
• For export of dutiable goods
• For export of goods under claim for duty drawback
4. Export application (prescribed by port trust)
5. Receipt for payment of port charges
6. Vehicle ticket
7. Exchange control declaration prescribed by RBI GR/PP forms
8. Freight payment certificate
90
9. Insurance premium payment certificate
The different commercial regulatory documents may be

classified into:
 Documents related to shipments,
 Documents related to payment;
 Documents related to inspection,
 Documents related to excisable goods
 Documents related to foreign exchange regulations.
DOCUMENTS RELATED TO GOODS
(I) INVOICE:
• CUSTOMS INVOICE
The customs invoice is used in lieu of the commercial invoice in a

few importing countries for customs purposes, but the importer
91
often needs a commercial invoice too. The customs invoice can

be in a form called the certificate of value. The invoice is self-
certified by the exporter. Certain importing countries may require
their importers, not the exporters in the exporting country, to
provide the completed customs invoice for customs clearance.
• CONSULAR INVOICE
The consular invoice is a specific invoice issued by the Consul of

the importing country. Many importing countries, mainly less
developed countries, have already phased out this invoice. It is
used for customs clearance and other purposes; as such any
errors or omissions on the invoice may cause problems and fines
at the customs in the importing country. The consular invoice is a
form of non-tariff barrier. The exporter's declaration normally is
included in a consular invoice. The consular legalization and
payment of a consular fee is required. The consular fee can be a
percentage of the FOB invoice value.
(II) PACKING LIST:
The packing list is the detailed list of contents of the shipment,

including quantities, items, model numbers, dimensions and net
and gross weights. A packing list should specify per carton or
crate the number and type of units of material inside. The shipper
gets the packing list ready at the time the goods are being is
prepared for shipping.
(II) CERTIFICATE OF ORIGIN:
The Certificate of Origin is only required by some countries. In

many cases, a statement of origin printed on company letterhead
will suffice. Special certificates are needed for countries with
which the United States has special trade agreements, such as
Mexico, Canada and Israel.
92
CERTIFICATES RELATED TO SHIPMENT
93
(I) MATE RECEIPT: Mate receipt is a receipt issued by the

commanding office of the ship when the cargo is loaded on the
ship, and contains information about the name of the vessel,
berth, date of shipment, description of packages, marks and
numbers, condition of the cargo at the time of receipt on
board the ship etc.
(ii) SHIPPING BILL: Shipping bill is the main document for

obtaining custom permission for shipping goods. This document
is of four types-
 Free shipping bills
 Drawback shipping bills
 Ex-bond shipping bills
(III) AIRWAY BILLS: Airfreight shipments are handled by air

waybills, which can never be made in negotiable form.
(IV) BILL OF LADING: It is a contract between the owner of the

goods and the carrier (as with domestic shipments). For vessels,
there are two types: a straight bill of lading which is non-
negotiable and a negotiable or shipper's order bill of lading.
DOCUMENTATION
94
Generally documentation is perceived to be the most complex,

difficult and critical activity of export marketing particularly in
India. Successful consummation of an export order needs
innovative skills and meticulous planning including proper
compliance and subsequent documentary provision.
One may categorize export documents into three dimensions on
the basis of their role in smooth flow of trade.
REGULATORY CONTROL IN INDIA

After becoming an exporter company it is required to obtain a
(RCMC) from the relevant export promotion council, commodity
board or any other designated body. This certificate is needed for
getting some more export incentives given by the Government of
India. Next step in becoming an exporting unit is to obtain
importer-exporter code number from director general of foreign
trade.
A) GR FORM / PP FORM:
GR FORM / PP FORM in duplicate are required for every

consignment for obtaining customs clearance. This form is
needed as a legal requirement under the Foreign Exchange
Regulation Act of India. GR FORM is needed for all consignments
other than ones being shipped by post, while PP FORM is needed
for goods going by post.
B)
DOCUMENTATION:
Various documents originated during export marketing

activities of Moserbaer are defined below:
95
• SALE ORDER / CONTRACT:
It is a premiere document that has to be generated in any

transaction. It is an agreement between buyer and seller, in
which seller has agreed to buy them, at an agreed price with
specified delivery terms. Delivery terms may be F.A.S, F.O.B, and
C&F etc.
• F.A.S (FREE ALONG SIDE):
In this seller has the obligation to deliver the goods alongside the
vessel on the quay. The buyer has to bear all the cost and risk of
loss or damage to the goods.
96
DUTIABLE SHIPPING BILLS
F.O.B (FREE ON BOARD)

When the delivery condition is F.O.B, the seller has the liability to
load the goods / materials on the vessel specified by the buyer.
The transportation, insurance and other agreements are to be
made by the buyer.
C & F (COST AND FREIGHT)

The seller must pay the costs and freight necessary to bring
goods to the named port of designation but the risk of loss and
damage to the goods is transferred from the seller to the buyer.
In case of “International Trade” the buyer and seller separated by
distant boundaries. The buyer or seller initiates the formation of
contract by sending purchase order or sale order respectively.
Sometimes the buyer intimates the seller by sending the
purchase order, or if seller finds the initiative lucrative, he sends
his sale order to the buyer. Thus in this way the parties enter into
a contract with each other. Such type of contract is known as
“Constructed Contract”.
Various contents of sale order are listed below:
a. Price of the product
b. Quantity and quality of the product
c. Period of delivery
d. Port of delivery
e. Standard terms and condition
f. Types of financial arrangements
97
g. Payment terms
DOCUMENTS RELATED TO PAYMENT
(i) LETTER OF CREDIT:

Under L/C the buyer promise to pay the seller on due date. In this
type of credit, the buyer’s liable to pay. It is thus also known as
banker’s commercial or documentary credit.
It is commonly referred as commercial L/C as it a means to
opening a credit in favour of someone, under which payment will
be made provided that certain conditions are fulfilled within given
time.
PARTIES INVOLVED IN L/C:
1. Buyer or importer
2. I) Issuing or opening Bank
II) Reimbursing Bank
3. Seller or exporter or beneficiary
4. I) Advising / confirming Bank
II) Paying Bank
III) Negotiating Bank
Based on security, L/C can be classified into 3 types:
1. REVOCABLE OR IRREVOCABLE:
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• A revocable L/C can be cancelled or modified, by the buyer

at any time without any notice to the seller.
• An irrevocable L/C cannot be cancelled without prior notice
to the seller of exporter.
2. CONFIRMED OR UNCONFIRMED:
When the bank authorized by opening bank confirms an
irrevocable L/C, it becomes confirmed. Otherwise the L/C is
unconfirmed.
3. RECOURSE OR WITHOUT RECOURSE:
If the advising bank pays the seller but does not get reimbursing
from the opening bank, then this bank can recover the whole
money with interest from the seller.
But in case of without recourse, the liability of the exporter ends
after he has deposited the required documents and received
payments.
(ii) BILLS OF EXCHANGE:

It is a document for the goods exported. It is the means of
collecting money through banking channels and also a method of
payment by credit. A bill of exchange is also referred as “Draft”.
It is a legal document. In India, Section 5 of Negotiable Act, 1881,
defines bill of exchange as-
“An instrument in writing containing an unconditional
order, signed by the maker, directing the person to pay
certain amount”.
(iii) BANK CERTIFICATE OF PAYMENT

It is a certificate issued by the negotiating bank of the exporter,
certifying that the bill covering particular consignments has been
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negotiated and that the proceeds received in accordance with

exchange control regulation in the approved manner.
(iv)
DISPATCH INSTRUCTION:
Dispatch instruction is almost like sale order. It is an instruction
or order given by the company’s marketing department to the
plant to dispatch specified goods to the port of any other
designations.
Contents of dispatch instruction are given below:
a. Specification and quantity of materials to be transported
b. Port of dispatch
c. Shipment schedule
d. Place and port of schedule
e. Name of the buyer
(v)
A.R.4 FORM:
It is an application, by the company to the central excise
department of custom, for excise relief.
In India exportable goods are exempted from duty. Hence if the
company exports goods to foreign countries, to gain foreign
exchange, it applies to central excise department to get
exemption, from excise duty, by giving application in a prescribed
format under rules – 158, 185, 1730. This application is known as
the A.R.4 FORM.
The contents of A.R.4 FORM are listed below:

a) Name and address of range officer
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b) Name of the company

c) Port of loading
d) Country of loading
e) Central excise regd. No.
f) Number and description of goods
g) Gross weight / net weight
h) Value of goods
i) Weight and quantity of goods
j) Duty rate and amount
k) Amount of rebate claimed
l) Remarks
m) Declaration of the company
(v)
DELIVERY INVOICE:
The plant prepares it at the time of removal of goods from the
plant. It is meant for excise purpose.
It contains the following:
a. Quantity of goods dispatched
b. Price of goods
c. Mode of dispatch
d. Port of dispatch
e. Buyer’s details
f. A.R.4 reference
(vi)
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PROFORMA INVOICE:
It is basically a form of quotation by the seller to the buyer. It is a
sort of invitation to the buyer from the seller to place a firm order
to him. It is deposited with the custom clearance for estimation
of excise duty. It helps in getting custom clearance.
A Proforma invoice contains:
a. Exporter’s name
b. Consignee’s name
c. Notify’s name
d. Buyer’s name
e. Countries of origin
f. Designation
(vii)
TEST CERTIFICATE:
It is a verification certificate that shows that the goods shipped
have the required cast no. and percentage composition.
(viii)
INSPECTION CERTIFICATE:
It is a document which certifies that the goods have been
inspected (prior to shipment). This certificate is generally desired
by the importer so that he can be sure that right types of goods
ordered are being send by the exporter. In India certain goods
are subjected to quality control. For this purpose an agency
called (EIC) was created.
(ix)
G.R FORM:
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It is one of the most important documents in international

business. This form is obtained from R.B.I. This form is filled by
the exporter and is endorsed by the customs. This form is one
kind of guarantee given by exporter to R.B.I. The exporter gives
guarantee that within “six” months of transaction the foreign
currency involved will be realized.
G.R FORM contains:

a. Exporter’s name and address
b. Invoice no. And date
c. Consignee’s name and address
d) Port of loading and discharge

e) Country of designation
f) Exchange rate
g) Currency of invoice
h) Net & gross weight, particulars, description
(x)
SHIPPING BILL:
It is the main document on which custom permission for export is
given. It is custom document. It is a document, which is
necessary for loading the cargo on ship.
It contains the following:

a. Exporter’s name and address
b. Invoice no. And date
c. Port of loading
d. Port of designation
e. Details of packages and goods
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f. Analysis of export value; currency; amount
(xi) MATE RECEIPT:

When the cargo is loaded on the ship, the commanding officer /
captain of the ship will issue the receipt called the “mate receipt”
for goods loaded.
It contains the following information:-
a. Name of the vessel
b. Berth
c. Date of shipment
d. Description of packages etc
(xii) BILL OF LADING:

It is a document which is issued by the shipping company
acknowledging the receipt of goods mentioned there / in and
undertaking that the goods are in condition and will be delivered
to the consignee, provided that the freight specified therein is
duly paid.
It serves the following 3 purposes:
 It is a document of title of goods shipped,
 It is a receipt for goods, received by the steamship company,
 It contains the terms of the contract between the shipper
and shipping company
(xiii)
MARINE INSURANCE:
When the goods are transported from one place to another there
is always risk involved. Hence to avoid such transit losses,
marine insurance is taken up. In India there are various
insurance companies, such as General Insurance Company.
Insurance Policy is normally done through agents.
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Marine insurance contains the following:

a. Name and address of the subsidiary of insurance company
b. Claim payable
c. Name of the insured
d. Vessel no.
e. Place of dispatch
f. Port of loading and dispatch
g. Destination
h. Insured value
i. Terms of insurance
j. Particulars and description of goods
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100% E.O.U:
Export Oriented Units means an industrial unit offering for its
entire production, excluding rejects and items otherwise
specifically permitted to be supplied to the domestic Tariff Area
(DTA). Such units may be set up under the Export Oriented Unit
(EOU) scheme or Export Processing Zone (EPZ), Electronic
Hardware Technology Park (EHTP). Such units may be engaged in
manufacture/production or trading of any goods, like Hardware.
Units engaged in service activities may also be considered on
merits.
The scheme of 100% Export Oriented Units (EOUs) was
introduced in the year 1980 with the objective of generating of
production capacity for exports by providing an appropriate policy
frame work, flexibility of operations and incentives. In order to
enable them to operate successfully in the international markets,
such units are allowed to import machinery, raw materials and
components and consumables free of customs duties, and if
procured indigenously, full exemption of excise duty is available.
These units have to operate under customs bond and are
expected to achieve the levels of net foreign exchange earnings
fixed by the Board of Approval as a percentage of their exports.
EOUs are governed by the following basic terms and

conditions:
• It may be established anywhere in India subject to location
criteria, local zoning laws and environmental regulations.
• The unit will undertake to manufacture in bonded area and to
export its entire period ordinarily of five years.
• If a unit approved under this scheme is unable for any reason,
to fulfill its export obligations, the Board of Approval will review
the case and recommend the future course of action to be
taken in regard to that unit.
• Once a 100% EOU is de-bonded, it would have to pay the
following duties.
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• Customs duty on capital goods on the depreciated value but at

the rate prevailing at time of import.
• Customs duty on unused raw materials, components,
consumables and spares of value at the time of import at rates
in force at the time of clearance.
• In respect of excisable goods, excised duty without any
depreciation and at rates applicable at the time of clearance.
EOUs established anywhere in India and export 100% its products
except certain fixed percentage of sales in the domestic Tariff
Area as may be permissible under the policy.
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EXPORT PROCEDURES
STEP 1:
ENQUIRY
The starting point for any Export Transaction is an enquiry. An
enquiry for leather should, inter alia, specify the following details
or provide the following data.
 Leather Type
 Part Number (Preferably the OE Makers' Part No.)
 Full description of the required product.
 Size details - Standard or oversize or undersize
 Drawing, if available
 Sample, if possible
 Quantity required
 Delivery schedule
 Is the price required on FOB or C& F or CIF basis
 Mode of Dispatch - Sea, air or Sea/air
 Mode of Packing
 Terms of Payment that would be acceptable to the Buyer – If
the buyer proposes to open any Letter of Credit, any specific
requirement to be complied with by the Exporter
 Is there any requirement of Pre-shipment inspection and if
so, by which agency
 Any Certificate of Origin required - If so, from what agency
STEP 2
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PROFORMA GENERATION
After studying the enquiry in detail, the exporter - be it
Manufacturer Exporter or Merchant Exporter - will provide a
proforma invoice to the Buyer.
STEP 3
ORDER PLACEMENT:
If the offer is acceptable to the Buyer in terms of price, delivery
and payment terms, the Buyer will then place an order on the
Exporter, giving as much data as possible in terms of
specifications, Part No. Quantity etc. (No standard format is
required for such a purchase order)
STEP 4
ORDER ACCEPTANCE
It is advisable that the Exporter immediately acknowledges
receipt of the order, giving a schedule for the delivery committed.
STEP 5
GOODS READINESS & DOCUMENTATION
Once the goods are ready duly packed in Export worthy
cases/cartons (depending upon the mode of dispatch), the Invoice
is prepared by the Exporter.
If the number of packages is more than one, a packing list is a

must.
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Even If the goods to be exported are excisable, no excise duty

need be charged at the time of Export, as export goods are
exempt from Central Excise, but the AR4 procedure is to be
followed for claiming such an exemption.
Similarly, no Sales Tax also is payable for export of goods.
STEP 6
GOODS REMOVAL FROM WORKS
There are different procedures for removing Export consignments
to the Port, following the AR4 procedure, but it would be
advisable to get the consignment sealed by the Central Excise
authorities at the factory premises itself, so that open inspection
by Customs authorities at the Port can be avoided.
If export consignments are removed from the factory of

manufacture, following the AR4 procedure, claiming exemption of
excise duty, there is an obligation cast on the exporter to provide
proof of export to the Central Excise authorities.
STEP 7
DOCUMENTS FOR C & F AGENT
The Exporter is expected to provide the following documents to
the Clearing & Forwarding Agents, who are entrusted with the
task of shipping the consignments, either by air or by sea.
1. Invoice
2. Packing List
3. Declaration in Form SDF (to meet the requirements as per
FERA) in duplicate.
4. AR4 - first and the second copy
5. Any other declarations, as required by Customs
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On account of the introduction of Electronic Data Interchange

(EDI) system for processing shipping bills electronically at most of
the locations - both for air or sea consignments - the C&F Agents
are required to file with Customs the shipping documents,
through a particular format, which will vary depending on the
nature of the shipment. Broad categories of export shipments
are:
• Under claim of Drawback of duty

• Without claim of Drawback
• Export by a 100% EOU
• Under DEPB Scheme
STEP 8
CUSTOMS CLEARANCE
After assessment of the shipping bill and examination of the
cargo by Customs (where required), the export consignments are
permitted by Customs for ultimate Export. This is what the
concerned Customs officials call the ‘LET EXPORT’ endorsement
on the shipping bill.
STEP 9
DOCUMENT FORWARDING
After completing the shipment formalities, the C & F Agents are
expected to forward to the Exporter the following documents:
1. Customs signed Export Invoice & Packing List

2. Duplicate of Form SDF
3. Exchange control copy of the Shipping Bill, processed
electronically
4. AR4 (original & duplicate) duly endorsed by Customs for
having effected the Export
5. Bill of Lading or Airway bill, as the case may be.
STEP 10
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BILLS NEGOTIATION
With these authenticated shipping documents, the Exporter will
have to negotiate the relevant export bill through authorized
dealers of Reserve Bank, viz., Banks.
Under the Generalized System of Preference, imports from

developing countries enjoy certain duty concessions, for which
the exporters in the developing countries are expected to furnish
the GSP Certificate of Origin to the Bankers, along with other
shipping documents.
Broadly, payment terms can be:
• DP Terms
• DA Terms
• Letter of Credit, payable at sight or payable at... days
Step11
BANK TO BANK DOCUMENTS FORWARDING

The negotiating Bank will scrutinize the shipping documents and
forward those to the Banker of the importer, to enable him clear
the consignment.
It is expected of such authorized dealers of Reserve Bank to

ensure receipt of export proceeds, which factor has to be
intimated to the Reserve Bank by means of periodical Returns.
STEP 12
CUSTOMS OBLIGATION DISCHARGE
As indicated above, Exporters are also expected to provide proof
of export to the Central Excise authorities, on the basis of the
Customs endorsements made on the reverse of AR4s and get
their obligation, on this score, discharged.
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STEP 13
RECEIPT OF BANK CERTIFICATE
Authorized dealers will issue Bank Certificates to the exporter,
once the payment is received and only with the issuance of the
Bank Certificate, the export transaction becomes complete.
It is mandatory on the part of the Exporters to negotiate the

shipping documents only through authorized dealers of Reserve
Bank, as only through such a system Reserve Bank can ensure
receipt of export proceeds for goods shipped out of this country.
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LIST OF DOCUMENTS REQUIRED TO BE SUBMITTED

BY THE EXPORTER TO THE VARIOUS AUTHORITIES,
ORGANIZATION AND AGENTS:
TO THE CUSTOMS AUTHORITIES:
1. Shipping Bill
2. Commercial Invoice
3. GR.form (original & duplicate)
4. Shippers Declaration form
5. Copy of export contract / L.C / exporters order
6. Inspection certificate
7. AR4 / AR4a / AR5 form
8. Export license ( wherever necessary )
9. Weighment certificate (wherever necessary )
TO THE PORT AUTHORITIES:

10. Export Application / Dock Challan
11. Cart Ticket / Chit
12. Shipping Order
13. Port Trust of the Shipping Bill
TO THE BANK:
14. L/C (where required)
16. Bill of Lading
17. Insurance Policy (certificate)
18. Bill of Exchange
19. GR. Form (duplicate copy)
20. Bank certificate (three copies)
21. Export inspection certificate (wherever required)
23. Shipment Advice
TO THE LICENSING AUTHORITIES:
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24. Application for Exporter-Importer Code number in

duplicate
25. Application in Prescribed
26. Copy of Export Order / L.C.
27. Statement of Export
28. Bank Receipt / Draft for Application Fee
29. Bond / Legal Undertaking toward Export Obligation
30. Chartered Engineers Certificate
TO THE EXPORT PROMOTION COUNCIL:

31. Application for Registration form cum member
certificate
32. Bank Certificate regarding financial Soundness
TO THE MARITIME COLLECTOR OF CENTRAL EXCISE:

33. Application in form ‘C’
34. Duplicate copy of AR-4 form
35. Non negotiable copy the B/L or the shipment
certificate
TO THE EXPORT INSPECTION COUNCIL

36. Application in the prescribed form
37. Copy of Letter of Credit
38. Copy of export contract
40. Bank passbook showing credit in favour of EIA to the
ext. of
Inspection fee or bank draft/crossed cheque for fee
TO RBI:
For Remittance of foreign exchange for the payment of
claims
41. Application form
42. Copy of Invoice
43. Sales contract
44. Bill of lading
45. Inspection / analysis report
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TO EXPORT – IMPORT BANK:

For direct financial assistance to Exporters.
46. Export contract
47. Letter of credit or letter of Guarantee from Importer
48. Balance sheet of Exporter
49. Statement of Profit and Loss A/C. in the transaction
covered by the contract.
50. Statement regarding the projection of the credit
requirement
TO THE BANK (FOR PACKING CREDIT)

51. Proforma invoice
52. Original RR endorsed to the Bank
53. Copy of Dispatch advice
54. Copy of Order or L/C.
55. Application form
FOR MEDIUM CREDIT

56. Export contract
57. L/C or Guarantee form Importer
58. Statement giving reasons why exports are made on
deferred payment arrangement.
TO THE E.C.G.C.
For Export Risk Insurance
59. Proposal form
60. Bank Certificate about financial position
61. Application form for fixing the credit limit. Document
required by importing countries.
62. Consular Invoice (mainly required by Latin America,
Middle
Eastern countries)
63. Certificate of value
64. Combined certificate of origin and value (mainly
required by
Common wealth countries)
65. Customs invoice (for U.S.)
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66. Health certificate for exports of foods product, seeds,

vegetable, fish, etc.
68. Generalize system of preference certificate of origin.
CHAPTER SEVEN
FINANCING
The government of India has introduced several schemes to
finance the various needs of Indian exporters. Basically, the
finance available to Indian exporters can be classified into two
broad categories as follows:
I) PRE- SHIPMENT FINANCE

II) POST- SHIPMENT FINANCE
PRE- SHIPMENT FINANCE:

Pre shipment finance or packing credit are also known as short-
term credit refers to any loan to an exporter for financing the
purchases, processing, manufacturing of packing of goods as
defined by RBI as its name suggest it covers credit extended by
banks prior to the shipment of goods, in effect, a packing credits
is a loan against exportable stocks. It is a shot term credit
because it is granted for the short period of time say about 6
months as against medium and long term credit extended for
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period beyond 6 months, except where the period is extended

otherwise.
PRE-SHIPMENT FINANCE IN INDIA, CLASSIFIED INTO

THREE CATEGORIES, NAMELY:
 Packing Credit – Clean or secured.

 Advance against incentives receivable from the Government.
 Advance against Duty Drawback.
Packing credit can also be put into following four categories,

depending upon the nature of production and procurement
system concerning the export commodity.
 Extended packing credit loan.
 Packing credit loan (hypothecation)
 Packing credit loan (pledge)
 Secured shipping loan.
PACKING CREDIT TO INDIAN EXPORTERS
1. ELIGIBILITY
Packing credit is available to all exporters whether

merchant-exporters, export/trading/star trading houses and
manufacturer-exporters. Even manufacturers of goods
supplying to export/trading/star trading houses and the
merchant exporters are eligible for this credit provided-
 They produce a letter from the concerned merchant

exporter/export/trading/star trading house that a portion of the
order has been allotted to them detailing the goods to be
supplied.
 The merchant exporter/export/trading/star trading house

neither has availed not wish to seek packing credit in respect
of the appropriate order, from any other bank/source.
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 The letter from the merchant exporter of export/trading of

star trading house is countersigned by the bank advising the
letter of credit.
2. PURPOSE/PRODUCT COVERED
Packing credit advance is generally available to eligible

exporters/manufacturers for the purpose of manufacturing
or purchasing or transporting or processing of warehousing
of packing and shipping of goods meant for export of goods.
It is available to all exporter/product groups subject to
stipulated conditions hence the RBIs interest rate structure
is uniformly applicable to export of all the commodities
made by all exporters. No advance at concessive rate of
interests is allowed against products, which will not be
eventually exported.
3. APPLICATION FOR PACKING CREDIT:
For obtaining packing credit, a formal application giving

details of credit, a requirement is to be made to the bank.
While some banks have evolved forms for the purpose,
others either accept the application on general loan forms or
on plain paper.
4. DOCUMENT REQUIRED:
Following documents are to be submitted along with the

application from for packing credit.
 Confirmed export order/contract of I/c etc in original.
 Undertaking that advance will be utilized for specific purpose
of procuring/manufacturing/shipping etc of the goods meant for
export only stated in the related confirmed export order or the
I/c.
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 Joint and several demands promote signed on the behalf of

firm as well as the partner individually.
 Letter of continuity (signed on the behalf of firm and partner
individually).
 Letter of pledge to secured demand cash against goods (in
case of pledge) or agreement of hypothecation to secure
demand cash credit (in case of hypothecation).
 Letter of authority to operate the account.
 Agreement to utilize the money drawn in term of contract.
 Letter of hypothecation of bills.
 Partnership deed in case of partnership firm or memorandum
of association, Article on association, Certificate of
Incorporation and commitment of business for public/private
limited companies with certify copy of board resolutions.
 Audited/final financial statements for the pat 3/5 years.
 Copy of income tax/wealth tax assessment order for the past
2/3 years in the case of sole proprietary and partnership firm.
 Copy of RBIs code no (CNX).
 Copy of a valid RCMC (Registration cum Membership
Certificate) held by the exporter.
 Appropriate policy/guarantee of ECGC.
 Any other document required by the bank.
II) POST –SHIPMENT FINANCE:

Post shipment credit/finance means any loan or any other credit
provided by any institution to an exporter of goods from India,
from the date of extending the credit after shipment of goods to
the date of realization exports proceeds, and includes any loan or
advance granted to an exporter, on consideration of or on the
security of any drawback or any cash receivable by way of
incentives from the government.
CATEGORIES:
1. Negotiations/payments/acceptance of export documents under
letter of credit,
2. Purchase /discount of export documents under confirmed
orders/exports contracts,
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3. Advances against bills sent on collection basis.

4. Advances against exports on consignment basis.
5. Advances against un draw balances.
6. Advances against duty drawback entitlement.
7. Advances against retention money.
8. Finance exports under deferred payment agreements, turnkey
projects, and construction contract, etc.
PROCEDURE
For availing post-shipment finance facilities, following
procedure is to be followed.
1. Enclose the documents with covering letter (signed by the

authorized signatory) indicating the type of facility required i.e.
negotiation, purchase or discount etc. the proceeds to be credited
to current/packing credit account any forward rate to be used for
transactions, instructions regarding collection charges from
drawees, documents to be released against payment/acceptance,
etc.
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2. Document should be correctly drawn and authenticated.
3. Obtain a seller’s contingency policy in case of C&F/F.O.B.

contracts.
CHAPTER EIGHT
FUTURE PROSPECTS OF INDIAN

LEATHER INDUSTRY
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LEATHER INDUSTRY TARGETS $7 BILLION

EXPORTS BY 2011:
Exports from India's leather sector are likely to reach $7 billion by
2010-11, according to Union Commerce & Industry Minister Kamal
Nath. This is up from $2.7 billion, the current export earnings
from the leather sector with an annualized growth of around 8
percent.
The Indian leather industry has set $7 billion export target by

2011. It is eager to forge tie-ups’ with various Italian leather
goods designers to achieve the target, Tapan Nandy, president of
the Indian Leather Product Association.
 An Italian delegation, which had visited Kolkata recently,

showed interest in India's leather industry.
 Italy's Arpel Group, an international school for shoes &

leather accessories designing, is currently looking for
partners in India.
 Retail major Wal-Mart is also eyeing the Indian leather

sector.
 The International Leather Goods Fair, which is being

organized by the India Trade Promotion Organization, the
Council for Leather Exports and the Indian Leather Products
Association, will have business visitors from the US, West
Europe, Canada and Latin America. More than 68 companies
from India and one each from Italy and China would take
part.
123
 At present, eastern India's share in the export basket is 15%,

which can go up to 25% if projects like the Calcutta Leather
Complex at Bantala and the recently proposed Dhantala
Leather Complex start operation within 2008, Nandi said.
The region is likely to export leather goods worth $ 0.33
billion in 2006-07.
INTEGRATED LEATHER DEVELOPMENT:

An Integrated Leather Development Program is being
implemented with the central allocation of Rs.400 crore, focusing
on modernization of manufacturing facilities in all segments of
the leather sector. The program could be extended during the
11th Plan period (2007-2012).
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LEATHER SECTOR IMPACT-INTERIM

BUDGET 2009-10
The Leather Export Sector is extremely disappointed that the

Interim Budget 2009-10 offers very little for the leather or
exporting sectors. The single supportive measure announced is
that of extension of 2% interest subvention for pre and post
shipment rupee export credit, from the prevailing validity of
March 31, 2009 to September 30 2009.
The recently released Index of Industrial Production indicating

Indian industry had grown year–on-year by minus 2% in
December 2008, had highlighted the leather sector as being one
of the industries that registered the largest production declines at
-11.4%
Indeed, for some time now, tanneries in Kanpur, Kolkata and

Chennai have been running at near-idle levels indicating that the
supply chain is drying-up and no orders are being placed by
product manufacturers for raw material. The latter are operating
at well below - up to 50% - of their normal levels, for there has
been a spree of cancellations and reduction of orders by overseas
buyers. As per current feedback, new orders are being booked
only to the extent of 30% of last year’s level. There is a serious
apprehension that exports will fall significantly in the coming
months, thereby causing severe problems in production and
employment. We anticipate that there could be a loss of several
thousand jobs in the next 3 months.
Our slowdown is to be contrasted with the aggressive booking of

additional orders by Chinese manufacturers, who in the
background of supportive intervention measures are able to give
price reductions in the range of 15-20%; as informed by our
buyers.
In this background the Council for Leather Exports had

represented to the Government for immediate measures in the
form of revision of Drawback rates to pre-revised level of 2007-
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08, Enhancement in the Duty free Import limit for manufacturer-

exporters from the existing 3 to 5% of FOB Export Turnover ;
Increased weightage for leather products from 1.25% to 2.5%
under the Focus Product Scheme, extension of the Focus Market
Scheme to EU & USA as these 2 markets account for 75% of
Indian leather sector exports, and Service Tax Exemption for 19
notified services & permitting of Service Tax exemption on
overseas agent’s commission at actual instead of at a percentage
of FOB Value.
The leather sector is a volume employment provider, particularly

in rural /semi urban areas and a significant foreign exchange
generator for the economy – it is our plea that the above requests
towards reviving export prospects and business be expeditiously
addressed, so that the industry and its workers are helped out of
this precarious situation
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CONCLUSION
• India’s export of leather & leather products during the first

seven months of the current financial year 2008-09 i.e. April-
October 2008 touched US$ 2250.79 million recording a
growth of 11.17% and in rupee terms the growth percentage
is 19.05%.
• Footwear alone holds a major share of 41.16% in India’s

total leather products export trade.
• The Export target fixed for the year 2008-09 is US$ 4000
million and the export achievement for the first seven
months ie. (April-October 2008) is 56.27%.
127
WEAKNESS OF INDIAN LEATHER

INDUSTRY
LEATHER INDUSTRY NEEDS TO EXPLORE NEW POTENTIAL

MARKETS
UNITED NEWS OF INDIA
New Delhi, Oct 8: Indian Leather industry needs to broad base its
exports to new frontiers, besides reorienting and restructuring its
plan for growth to face the increasing competition from other
Asian countries like China, Indonesia, Thailand and Vietnam.
 The Rs 20,000 crore-leather industry which exports products

worth Rs 7,000 crore showed a positive growth of 10.8 per
cent in dollar terms during 1998-99 but constitutes only
seven per cent in the country's export basket.
 According to an Assocham paper on the status of the Indian

leather industry, exports on footwear and leather goods
have grown at a faster rate than leather garments.
128
 The exports of finished leather remained more or less

stagnant at around $ 300 million, while footwear have
increased their value from $ 200 million in 1993-94 to
around $ 281 million, garments from $ 350 million to about
$ 425 million and leather goods from $ 230 million to around
$ 350 million, it said.
 The Indian leather industry has attained merited recognition

in the international market with the export of finished
leather, leather footwear, footwear components, leather
garments, leather goods and saddlery and harness.
 The present trends indicate that the domestic demand for

the leather footwear has picked up significantly and is of the
order of 200 million pairs per annum. The price in India is
higher than the export price, so the government and the
industry will have to take cognizance of this aspect.
 At this juncture, with the complex problems on the export

front like ban on the use of pentachlorophenol as
preservative and the use of arylamine group of dyes along
with increasing local demand at more lucrative prices, the
leather industry has to reorient and restructure its plan for
growth, the paper said.
129
 The annual availability of 166 million pieces of the hides and

skins is the main strength of the industry which is expected
to be 218 million pieces in 2000.
 India has a large raw material base with a population of 194

million cattle, 70 million buffaloes and 95 million goats and it
ranks first among the major livestock holding countries in
the world. With 48 million of sheep, it claims the sixth
position.
 With the tanning and the finishing capacity for processing

192 million pieces of hides and skins per annum spread over
different parts of the country mostly on modern lines, the
capability of India to sustain a much larger industry with her
raw material resource is evident.
 The Assocham paper indicated that direct and indirect
employment of the industry is around two million. The skilled
and semi-skilled workers constitute nearly 50 per cent of the
total work force.
 Apart from a significant foreign exchange earner, leather

industry has a vast potential for employment generation
among weaker sections of the society and women is
immense.
 With the proposed support to the unorganized/artisan sector
by government of India and National Leather Development
130
Programme (NLDP), along with the leather technology

mission (LTM), productivity levels of artisans and small scale
sector could change dramatically as, need of the hour, the
quality of product.
 Nearly 70 per cent of India's export of leather and leather

products are to the European countries, besides this the
industry continue to hold Germany, USA, UK, Italy and
France as its major markets.
 Exports to Germany alone account for 22.2 per cent followed

by the US 15.6 per cent, the UK 14 per cent and Italy 12 per
cent.
 NLDP, with the assistance from UNDP and the Government

of India, was launched in 1992 for the integrated
development of the leather industry in areas of education
and technical training, research and development in effluent
control, export expansion and coordination through select
institutions in the country.
 The programme also upgraded the training system for

design and manufacture of footwear, garments and leather
products.
131
 As part of brand promotion under the market development

assistance programme, soft loans have been proposed for
brand promotion of leather products.
 The status paper suggested that the tanneries need to adopt

and change to industry-friendly chemicals in leather
processing units so that they have a ready acceptance
abroad.
 The leather industry is much concerned over the duty

drawback rates and recommended that separate rates for
products manufactures using duty free finished leather be
fixed. Tanners have also recommended `free-export' policy
for all types of leather to increase their global reach. The
paper suggested that the ban on import of second-hand
capital goods should be revoked as it would limit the
modernization of tanneries, especially in small scale sector
which cannot bear the high cost of new machinery and also
recommended the introduction of foreign investment into
this sector.
 A case study on the footwear industry indicated that though

the market size has been increase, the value of domestic
consumption has been nearly stagnant. Though exports
132
have increased, effort should be made to expand the

domestic market too.
 According to industry experts, with the increase in middle

class population, the consumption patterns are likely to
change radically with brand names, including the foreign
ones, crowding in the market. So, there is huge potential to
expand the domestic market. As of today India has less than
one per cent share of world trade.
 According to provisional figures available from DGCIS, value

of exports of the leather footwear has shown an increase but
for footwear components it has declined.
 For leather products, the value of exports has increased

from Rs 102 crore in April 1999 to Rs 126 crore in April 2000.
But for the leather components, the decline remained
marginal from Rs 84 crore in April 1999 to Rs 82 crore in
April 2000.
 In terms of export by the country, the US tops the list with

imports worth Rs 35 crore in 1999 followed by the UK with
Rs 28 crore and Germany with Rs 11 crore of imports. In
133
footwear components, Germany tops the list with Rs 18

crore worth of imports.
 The footwear industry needs to explore new potential

markets like Brazil, Argentina, Chile, Peru and Colombia as
these countries could also be used as source for quality
hides and wet blues. Higher quality standards and
adherence to eco-regulations are required to be maintained
to ward off the threat of increasing competition from
neighboring countries.
OTHER WEAKNESSES:
 No quality specifications, poor quality accessories
 Competition from low price markets like Pakistan,

Ethiopia, Indonesia and Kenya.
 Did not project position of products, positioning is wrong

not match to Italian target is just to match Pakistan.
 No brand name.
 Unorganized sectors.
 So many scams, corruption in government.
 No research & development.
134
REMEDIAL MEASURES
 There is a need to modernize the processing technology

through which is possible to improve the quality of the
leather this technological up gradation can minimize the
problem of pollution.
 The shortage of raw material should be overcome

somehow in order to sustain the growth in experts. In this
context the treatments of splits become very important.
Proper and fuller utilization of splits will have to be restored
to, thereby attaining a higher recovery from the same
quantum of raw material.
 The unutilized manufacturing capacity of the unit needs to

be harnessed in the best possible manner so that the total
cost of production can be brought down.
 As far as financial problems are concerned; the bands and

the financial institutions should come forward by
providing liberal financial assistance.
 Specific areas of tariff Reduction in the import duty on

chemical and machinery which go directly in the production
of exports.
 Provision of export finance as well as term loans at lower

rate of interest or even without interest.
 It is necessary to change the export profile to fall with the

global import profile in order to derive the maximum benefit
from the available raw material, skill and traditional industry.
135
In order to encourage domestic value addition to retain a

larger share of the product price within the country. It is
necessary to make available quality furnished leather to the
manufacturers or expo0rters of value-added products, and
export of semi-tanned leather export may be brought under
quota system.
 The proposal to use the world bands export-marketing fund

for this sector, and set up proper efficient treatment plants
must be pressed.
136
IMPACT OF CURRENT RECESSION

ON LEATHER INDUSTRY
As the Europe and the United States market is worsening, the 2.5
million people in leather export industry in India will be laid off
500 thousand people. The 500 thousand people have to face with
the unemployment.
Since the beginning of September, the production of exports of

leather industry has started to decline, in November the leather
and leather products exports fell by 15%, whereas in December it
dropped by 20%. Since September, there have been 350
thousand to 500 thousand people being unemployed, and another
500 thousand people are facing unemployment.
IMPACT OF GLOBAL SLOWDOWN ON LEATHER

EXPORTS AND REMEDIES
AN ARTICLE PUBLISHED ON FEB 2ND, 2009
PROBLEM BEHIND LEATHER EXPORT INDUSTRIES:

Indian Leather industry is moving towards an unprecedented
crisis with the slowdown of global economy. With the economies
of US, Europe and Japan plummeting together, India has also
witnessed fall in GDP growth from around 9% last financial year
to 7% in the current financial year. It is projected to dip even
further to around 5.5 % - 6% for Year 2009 - 10.
The leather exports sector which witnessed a growth 20% in

the first half of 2009 got dented by the global slowdown in the
137
subsequent months. The main reason is attributed to the decline

in orders from Western markets, especially the US and UK. The
European Union and the US are the two biggest markets for
Indian leather export firms which stand at 65% and 25%
respectively in terms of India's export share of Leather products.
Secondly Chinese Govt. is generously helping Chinese exporters

to follow an aggressive exports policy which help them to bag the
orders in the competition.
It is a matter of big concern for our Leather Industry which is

mainly dependent upon its exports rather than domestic sales.
Indian exports of leather is estimated at 3.5 billion INR and its
domestic market is hovering around 2.5 billion INR. The main
reason behind this could be that our leather industry cannot rely
on its domestic market as the retail sector is still immature to sell
the export products.
Leather exporters are being inextricably caught in a situation

where buyers are delaying fresh orders besides delaying their
payments on existing orders and on top of that they are also
asking for huge discounts. It seems that if the problem is not
addressed on time, it would adversely affect the small scale and
tiny industries and also have an impact on big businesses, leading
to job-loss and closure of units over the next few months.
It is estimated that around 2-3 lakh workers can lose their jobs in
leather industry which has employed around 25 lakh total
workers.
138
REMEDIES TO BOOST LEATHER EXPORT

INDUSTRIES
Need of the hour is to take proactive and logical steps to tackle

the situation effectively which can only happen with the matched
efforts on the part of both Government and Industry.
Mr. Habib Hussain (Chairman of leather exports council) while

addressing the issue has suggested a three-pronged approach to
tackle the situation.
“He emphasized on creating the required infrastructure and have

long-term plans,
" Providing subsidized term loans to exporters who have suffered
losses due to slow down"Treating US and Europe in focus markets
scheme.
“Innovative product designs at competitive rates.
In addition to the above, some immediate measures are needed

to alleviate the plight of the leather exporters. Govt. should
increase the drawback rates, reduce delays in export incentive
reimbursement, Increase duty free import limit for manufacturing
exporter on the % of export value, and increase weight age of
leather goods under focus product scheme.
All these steps are necessary to retain the big global brands
which source from India which can otherwise go to China who has
cost advantage to play with.
139
LEATHER INDUSTRY GLOSSARY
Leather Industry Glossary - A collection of frequently

used terms, abbreviations and jargons used in the
Leather Industry with their definition and meanings.
A:
Ageing
The process by which certain types of leather are at some stage
of manufacture allowed to lie in piles to "age".
Alum Tanning
A process of tanning with alum, used in combination with salt,
egg yolk and other substances. Used for the original feathery golf
balls. "In 1845 we more than doubled that. Hard work it was. I can
still smell the leather, feel the heat. We used to use a chest clamp
to literally compress and push those goose down feathers into the
ball. Of course you cut six strips of bull hide and you soaked it in
alum and of course you took three of 'em and stitched them
inside out there, and the feathers went back in, and you
compressed and compressed, and the idea being that as the
leather shrinks as it dries out and the feathers expand. Then that
gives you the compression." Quoted by Wally Uihlein, Sept 1998,
at St.Andrews Golf Congress.
140
Aluta
Roman name for tawed (alum tanned) leather. Aluta was used for
sails in Venice, and for shoe uppers in ancient Greece.
Aniline Leather
Leather which retains its colour only from dyestuffs rather than
from pigment, and as a consequence looks more natural.
B:
Bag and case leather
A general term for the leathers used in travelling bags and

suitcases. It does not include the light leathers employed for
women's fancy handbags. The staple material for bag and case
leather is cowhide.
Bag Leather
A form of vegetable tannage in which the skins are sewn together
in pairs to form bags and floated in tan liquor. This method avoids
drawn grain and gives good spread of leather.
Basil
Bark tanned pickled sheepskins.
Bating
The process prior to tanning proper where the fibres of a hide or
skin which have been plumped or swollen by liming are reduced
and softened, thus assuring pliability in the product. The word is a
form of "abate" in the sense of reduce.
Beamhouse
The area of the tannery where the unhairing and liming processes
are carried out. Before modern machinery the processes of
fleshing, scudding and others were carried out over specially
designed wooden beams using curved two handled knives with
sharp or blunted edge according to the operation. Hence the
name.
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Belt leather
Leather used for the leather going into men's clothing belts.
Belting leather
Leather employed for the transmission of power for machinery.
The great bulk of this leather is made from the butts of high-
grade cattle hides. In Europe a certain amount of buffalo hide is
also used.
Boarding
A process of finishing a side or skin by folding it with the grain
side in and rubbing the surface together under pressure. Gives a
distinct look, and creates "box" look when done two ways and
"willow" when done only in one direction.
Bougie Leather
Leather from the town of Bougie in North east Algeria. Famous in
the fifteenth century.
Box Calf or box sides
Calf or side leather which has been boarded in two directions.
Buffing
Sandpapering the leather with sandpaper or emery paper for
various reasons such as the creation of a suede like nap on
suede, a nubuck finish on grain, or for the preparation of
corrected grain leather. Sometimes done on the flesh side to tidy
up its appearance
C:
Cabretta Leather
A wrongly named hair sheep. When the Portuguese first went to
Brazil they mistook the indigenous hairsheep for goats and called
them cabrettas (kids). The skins were exported to the USA by the
Blue Funnel Line (later the Booth Group) and the name cabretta
stayed with them. Now all hairsheep skins have taken the generic
name cabretta. Much used in footwear leather and sport glove
leather.
142
California Banknotes
In "Two Years Before the Mast" Richard Henry Dana describes
how he sailed from Boston to California in 1834 to collect hides.
He explains how hides are dried and loaded onto the ships before
returning to the East Coast. Since California had nothing else of
wealth at that time the dried hides were known as "California
Banknotes". "The hides are brought down dry, or they will not be
received. When taken from the animal they have holes cut in the
ends, and are staked out, and thus dried in the sun without
shrinking. They are then doubled once, lengthwise, with the hair
side usually in, and sent down upon mules or in carts, and piled
above high-water mark: and then we take them upon our heads,
one at a time, or two, if they are small, and wade out with them
and through them into the boat." On page 140 of the book
detailed at the end is a fine description of the full cure process
used to prepare the hides for a wait of over a year before they
would get back to Boston around the Cape for tanning. Hides
were valued in Boston at 12 and a half cents a pound dry salted
and the captain got 1% commission. Ships would spend nearly a
year collecting and accumulating hides up and down the
California cost to make the journey worthwhile. On Dana's ship
they brought back 40,000 hides.
Carding Leather
A special type of side leather used on the cards of cotton
machinery. The leather lies flat against the beds of the cards, the
teeth being forced through.
Chamois leather
A soft leather originally made from the skins of the Alpine
antelope known as the chamois but at the present time from the
fleshers of sheepskins. Certain grades used to be used in gloves
and fancy articles but the staple employment is for cleaning and
polishing, primarily automobile. Chamois is characterised by an
ability to absorb at least three times its own weight of water.
Shoemakers, but unlike cordwainers they work with old
leather.Cobblers are essentially repairers.
143
Combing leather
The name applied to the leather used on the combing rolls of
cotton machinery and manufactured of calfskin or side leather.
Conditioning
When leather is dried after retanning, dyeing and fatliquoring the
fibres tend to stick together and the leather is hard. The fibres are
separated and the leather softened by staking. Staking is best
done at about 18% humidity and so a little humidity has to be put
into the dry leather. This is most commonly done by a water
spray and then piling the leather long enough for the moisture to
even out. Adjusting the moisture content before staking in this
way is called conditioning.
Cordovan
The shell of a horse hide, often tanned with a sulphur tannage.As
such it was a soft vegetable tanned leather first made in Cordoba
in Spain, and followed by goat, sheep and pigskin leathers with a
similar formula.Cordovan leather has good wearing
characteristics, and I non porous.The horse product still tends to
be called “shell cordoban leather”.
Cordovan Leather
Developed in Spain in the 8th century, when the Moors arrived in
Spain. Made from the skin of the mouflon (Ovis Musimom). This
hair sheep now only survives in Corsica and Sardinia. It was
tanned with alum and later with alum (Koninklijke Bibliotheek
says sumac was not introduced until the 15 th century). Best
brilliant scarlet type was tawed with alum and dyed with kermes.
Cordwainers
From Cordovan leather. At first made many types of leather
articles. In Middle Ages specialised in Shoes. Cordwainer is from
the French word “cordonnier” and came to England in 1066 with
the Norman Invasion.After Cordoba fell in the 12 th century
English Crusaders brought back this alum tanned goat skin.It was
considered the highest quality shoe leather in Europe.
Cordwainers work only with new leathers.
144
Corrected Grain
Chrome tanned side leather which is buffed with emery paper on
the grain side to remove defects and then has a plastic resin and
pigment finish built up on the leather. Used for shoe upper
leather.
Crupp leather
A semicircular portion of leather taken from the butt of stuffed
vegetable tanned horse hide.
Crust
Leather dried after tanning. Since chrome leather dried
immediately after tannage will go hard, change charge and
become difficult to rewet, this drying normally takes place after a
basic retanning and fatliquoring. Leather is frequently traded
worldwide in this state, although tanners normally prefer to buy
wet blue or pickle which gives them more flexibility of processing.
Currying
A term practically equivalent to dressing and finishing, but
confined chiefly to heavy leather (Latin corredare, to prepare or
dress).
D:
Deliming
A process preparatory to tanning proper to reduce the swollen
and rigid fibres of a hide or skin after liming.
Dongola Tannage
a. A vegetable and alum tannage developed in Gloversville, New
York, in the 1860's to compete with the expensive kid tannage for
gloves. Used hair sheep. Dongola is a town in the Sudan, and
there is a breed of hair sheep named after it. "Dongola, strictly
speaking, is alum, salt, and gambier only, used together in one
solution. Dongola is especially applied to glazed and dull kid. For
full dongola the process is commenced in very weak gambier
liquor, with the full proportion of alum and salt, and the gambier
is gradually strengthened. Dull dongola is ironed like kid in the
finish. It is said to be sometimes glazed with a blood seasoning,
145
and then dulled by a mixture of soap and oil, followed by slating

with a smooth round -edged slicker, but it is generally sized". b.
Dongola tannage.- gambier, alum, and salt make what is known
as dongola leather. There are many modifications of this process.
Fine leather is made by tanning the skins first in gambier or
quebracho liquor, and then giving them an alum and salt re-
tannage. For 200 average skins, a mixture is prepared of 5lb. of
alum, 9lb. of salt, 24lb of flour, 10lb. of egg-yokes, or a
corresponding quantity of sulphonated oil, and 8 to 10 gallons of
water. The flour is made into paste with cold water. The alum and
salt are dissolved in part of the water, and the flour paste is
slowly stirred into the solution. The oil or the egg-yoke mixed with
warm water is next added, and the whole mixture is thoroughly
stirred. The tanned skins are drummed with this mixture one
hour, then dried, colored and finished, thus making soft, durable
leather. This mixture may also be used on untanned skins as
come from the bate or drench. They should be drummed with it,
dried, kept in crust for some time, then wet-back and tanned with
chrome liquor, the result being soft durable leather. The
combination tannage of gambier, alum, and salt can also be
applied in the following manner: The bated and washed skins are
placed in gambier liquor in a paddle. From 3 to 5lb. of gambier
are used for one dozen skins. After they have started to absorb
the gambier, from 8 to 16 oz. of alum and 8 oz. of salt are added
to the liquor, for each dozen skins, and the paddling is continued
until the tannage is complete, which takes 18 to 36 hours. The
leather is then washed in warm water to remove the adhering
tan, next fatliquored with acid fat-liquor, dried, wet-back, colored,
dried again, and finished. After the alum and salt have been
added it is customary to put the skins, together with the tanning
liquor, into a drum and run them for a few hours or until
thoroughly tanned. Some soluble oil may also be added to the
liquor and applied to the leather toward the end of the tanning
process. Excellent leather is also made by taking the skins out of
the gambier liquor when they are well struck through, striking
them out and then drumming them with a paste of water, flour,
alum, salt, and either egg-yoke or soluble oil, drying and then
coloring them with a basic dye and titanium-potassium oxalate.
The color of the leather can be modified by adding a solution of
146
fustic or other dyewood to the gambier liquor, and the entire

process may be reversed. The skins may be first drummed with
alum and salt and then tanned with gambier. Heavy skins may be
tanned with gambier, alum, and salt. After the leather is dry, it
can be colored with acid or basic dies: and, if not fatliquored
immediately after tanning, drummed with acid fatliquor or with an
emulsion of oil and soap, staked and finished.
Drenching
A process for reducing the plumped fibres of a hide or skin. It
accomplishes approximately the same purpose as bating and
basically in the same way - that is, through soaking in a
fermenting solution. Some authorities, however,, restrict the term
bating to the process using ferments of manures and the term
drenching to that using damp sawdust, bran, middlings, or a
solution of lactic acid or some other chemical having a similar
action.
Drums
The collective term for the rotary vessel in which many processes
of tanning are now carried out.
E:
Ecrase
Usually highly polished goatskin leathers showing differences in
colour tone coinciding with the natural goatskin grain.
Extractv
A solution of a tanning material, normally vegetable.
F:
Fatliquoring
Using fats and oils in appropriate mixes to lubricate and soften
the fibre structure of leather, given the leather the required
softness for its eventual end use.
147
Football Leather
Leather for covering the outside of soccer balls. Originally made
of pigskin, then of cattlehide splits, and more recently of PU
laminated splits. Lately leather has been somewhat replaced by
full synthetics.
Flesher
The flesh piece from a thick woolly sheep which has been split
into two layers. Used to make chamois. The grain is made into a
skiver. Sometimes for cost and easy maintenance the material is
part tanned and then split. The grain is then called a pliver. The
flesh created in this latter way will not make true chamois.
Frizing
The process of removing the grain of a skin by exposure to a
strong lime liquor over an exceptionally long period,, sometimes
as much as eight weeks. Such skins, after tanning are finished on
the fine fibres under the grain. This is the method used in the
manufacture of mocha glove leather and of certain classes of
buckskin. (11)
Full grain leather
Leather whose grain has not been sandpapered or buffed to hide
defects
G:
Glove Leather
A self-explanatory term which, however, covers two rather
distinct classes: the leather going into utilitarian or work-gloves
and made of a variety of hides and skins, of which the most
important are horsehides, cattlehide splits, calfskins and pigskins;
and the leather going into dress-gloves, including those for street,
riding, driving, and sports wear. the latter is tanned
predominately from sheep and lambskins; but there is a
considerable item made of deerskin and a small one of pigskin,
while an important item for the highest grades of women's fine
gloves is tanned in a few countries of Europe from kidskins.
148
Guilds (Gilds)
Western European trade associations, grew strongly in the 12th
and 13th centuries to protect and promote trade groups. Data
from the Brewers’ Company in London show that their were at
least 14 different guilds concerned with leather listed in London in
1422).
H:
Handlers
One of the series of pits or vats in which heavy leathers are
tanned with bark or vegetable extracts. They are usually worked
with stronger liquors than the suspenders, but with weaker
liquors than the layers.
Heavy Leathers
A term distinguishing sole leather, belting leather, and harness
leather proper from other classes which are referred to
collectively as light leathers.
Helvetia Leather
Oil tanned hide from which not all the excess grease is removed.
Hydraulic leathers
A collective term sometimes used for the cattle hide leathers,
chiefly rawhide and combination tannages, employed in pump
valves, as piston packing, oils seals and so forth.
I:
In the hair; in the wool; in the raw
A group of more or less equivalent terms used to describe stock
that has not yet undergone any of the processes of leather
manufacture.
In the rough; in the crust; in the white; in the blue
A group of approximately equivalent terms used to describe stock
which has been tanned,, but not finished. In the rough or rough
tanned is most commonly applied to vegetable tanned cattle hide
leathers; in the crust and in the white to vegetable, alum or
149
formaldehyde tanned sheepskins and lambskins; and in the blue

to chrome tanned skins particularly goatskins. The use of the
term in the white needs to be distinguished from that mentioned
in the following definition. See also Wet White and Wet Blue.
In the white; in the pickle
Two roughly equivalent terms used to describe stock which has
undergone the processes preliminary to tanning, but has not
been actually tanned. Historically in the pickle is restricted to
sheepskins and lambskins; in the white, in this sense, is used for
practically all other classes of hides and skins.
J:
Japanning
A process of preparing the oil for, and the process of,
manufacturing patent leather
L:
Larrigan Leather
An American speciality made of light cattle hide and used in the
manufacture of the heavy moccasins worn by lumbermen to
guard against slipping when walking on wet logs.
Latigo Leather
The Spanish word latigo means a whiplash and this leather was
originally tanned for that purpose; but as a technical term in the
present day American trade, latigo means the straps used for
cinching saddles of the McClellan, cowboy and Mexican types.
This leather is usually prepared from cattlehides by a combination
tannage.
Layers
The last set of vats or pits in which heavy leather is tanned,
containing the strongest liquor. The hides in these pits are laid
flat - originally with layers of tan bark between them.
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Leather
For the avoidance of all ambiguities and doubts, which may and
do grow upon the definition and interpretation of this word
leather, it is enacted, and declared by these presents, that the
hides and skins of ox, steer, bull, cow, calf, deer, red and fallow,
goats and sheep being tanned or tawed, and every salt hide is,
shall be, and ever hath been reputed and taken for leather. Act of
Parliament. UK year 1604. (2)
Light Leather
Leather for clothing, gloving and shoe uppers mostly chrome
tanned.
Liming
A process preliminary to tanning, which serves one or both of two
purposes: (1) to loosen the hair or wool on a hide or skin,
preparatory to dehairing; and (2) to plump or swell the fibres as
of the processes necessary to prepare the substance for the
action of the tan liquors. Liming is always required for the latter of
these purposes.
P:
Paddles
A name applied to certain types of machinery with rotating arms,
which are used in various tanning operations for agitating hides
or skins in process. Use more water than drums, allowing larger
floats and consequently gentler action. Mostly used in the soaking
and liming areas.
Painting
A process for loosening hair or wool (usually the latter) which is
employed with skins whose protective covering is so valuable as
to make it desirable to avoid injuring it by soaking in a lime liquor.
The process is carried out by painting the flesh side of a skin with
a depilatory substance, containing sodium sulphide or arsenic.
Nowadays this is the usual method with sheepskins bearing the
higher grades of wool. Before it was invented, such skins were
usually dehaired by sweating.
151
Parchment
See Pergamum.
Pasting
A method of drying where wet leather is pasted onto a glass or
steel plate and then allowed to dry in controlled conditions - often
a tunnel with various chambers adjusted to fit the planned
removal of moisture. Most used with side leather. Holds the area
well, but if not well retanned the leather can feel hard and empty.
There is a danger of the paste damaging the grain or interfering
with the finish. US tanners are most skilled in this drying method.
Pelt
This word means, strictly speaking, any kind of skin (Latin pellis,
related to the German felle, a skin, and the English word fell, now
preserved only in fellmonger). The word is somewhat loosely used
in the leather industry, but its only common applications
nowadays are to sheepskins in two or three slightly differing
senses: to the skin proper, to distinguish it from the wool that
grows on it; to dewooled sheepskins, as a pickled pelt or a
fellmongered; or in some countries to a woolskin bearing the
shortest recognised staple.
Pergamum
Town near Izmir (Smyrna) in Asia Minor. Parchment (from Latin
"carta Pergamena") supposedly first made there in 3rd cent BC.
When the King of Pergamus was building a great library in rivalry
with the library of the King of Egypt in Alexandria, the latter
placed an embargo on the exportation of papyrus from Egypt to
hamper competition. The King of Pergamus thereupon perfected
the manufacture of parchment for the making of books.
A more comprehensive discussion of this is given by the

Koninklijke Bibliotheek.Since it is very interesting I quote from
their website: Parchment was used chiefly for writing, first on a
scroll - as is still the case in Israel - and from the second century
BC onwards in book form. To make a book, the rectangular cut
sheets might be folded one or more times. The skins of sheep and
goats from the areas round the Mediterranean were rarely more
than 50 cm long by 40 cm wide. In northern regions we find larger
152
skins and also calfskins being used to make books. The term
pergamena is first used in the Edict of Diocletian (301 AD); until
that time the term membrana had been used. It is generally
accepted that the use of a new term indicates a new or modified
product, but so little is known about the parchment of those days
that it is impossible to say with any certainty whether this was
the case here.
One of our few informants about pre-Christian times is the

(unreliable) Roman historian Pliny. He writes that the king of
Pergamon (in present-day Turkey), Eumenes II (197-159 BC), was
forced to look for alternative writing materials when the import of
papyrus from Egypt was suspended. This is supposed to have led
to the invention of parchment. Although parchment had been
known at least eight hundred years before this date, Pergamon
did have a reputation for good quality parchment in classical
antiquity. The great change occurred around the fourth century
AD, when people started manufacturing parchment using lime
water. Until the fourth century skins were mostly treated with
salt, flour and other vegetable products that were used to remove
the hairs and to prepare the skin. The lime water method may
have been introduced by Jews and Arabs to Spain in the early
Middle Ages, after which it spread throughout the rest of Europe.
Jewish parchment was lightly tanned on the surface with
vegetable tannins. Another technique, the splitting of skins, was
also known to the Jews and Arabs, even before the middle Ages.
In the West the traditional procedure to obtain the required
thickness was to shave the full skin.
Formulas and depictions of parchment manufacturing have come

down to us, especially from the late Middle Ages. There is
considerable correspondencebetween these mediaeval formulas
and those used by modern parchment makers, and even the
processing and tools have not changed fundamentally. For the
most part, parchment manufacture is still a matter of handwork.
Picker Leather
The picker is the mechanism on either side of a power loom that
throws the sharp pointed shuttle and receives it again as it is
153
thrown back. For arming this mechanism, long experience has

found nothing equal to a special, very tough leather, usually
rawhide - either cattle or buffalo. Such picker leather is made
extensively in the North of England and in parts of the USA, partly
from native cattle hides and partly from imported buffalo hides.
Pickling
A preliminary process for preparing hides and skins for tanning,
largely by adjusting the pH with acid and controlling the swelling
with salt. It is also use as stable way of holding material, after
unhairing, for transport between plants and countries and for
trading.
R:
Retanning
A process subsequent to the main tannage when the character of
the leather is adjusted by the addition of further alternate types
of tanning material. Thus synthetic or vegetable tans may be
added to a chrome leather to adjust certain characteristics.
Roans
Sumac tanned sheepskins.
Rockers
A device for the continuous agitation of hides when suspended in
pits or vats in order to hasten the operation of the liquors.
Rolling
One of the final operations in the manufacture of sole leather, by
which it is given a smooth surface and even thickness.
Russia Leather
Leather characterised by its odour. "Anglo Russias" are skins
treated with birch tar oil to imitate the smell of Russia leather.
“The Russians have manufactured for a long time a variety of red
leather called Juncten. This leather has an agreeable and
characteristic odor, does not mould even in damp places, and is
not attacked by insects.
154
Russia Leather
Originally and properly calfskin shoes leather, dressed with birch
oil and distinguished by its odour rather than its appearance.
S:
Santa Croce..
..... Igualada, Vic, Alcanena, Solofra, Lyon, Arzignano,
Guadalajara, Kano, Northampton, Ambur, Ranipet, Vaniyambada,
Millau, Kano, Graulhet, Mazamet, Gloversville Some of the places
in the world which are centres for the leather industry
Samm, sammying
The mechanical extraction of moisture from leather after a
processing stage. Most normally done on wet blue after chrome
tanning, using a machine which carries the leather through felts.
Scud
A film or deposit of waste matter appearing on the surface of
leather in process after certain operations, esp. bating.
Scudding
One of the preliminary processes preparatory to tanning. After
bating or drenching the excess fermenting materials, together
with dirt, fatty matter, hair follicles, short hairs, and glandular
tissue, are worked out of the hide or skin.Mostly done by hand
using a blunt two-handed knife over a curved beam. Can be done
by machine.
Setting out
This mechanical process is used at various stages in the finishing
of leather to counteract the shrinking and stiffening resulting
form the processes that have gone before.Most common after
retanning, fatliquoring and dyeing. Normally done by machine
using a knifed cylinder with blunted blades. Some modern
machines combine sammying and setting and some incorporate a
heated roller to help set the grain in a smooth tight configuration.
Striking out is a similar process for heavy, vegetable tanned
leather.
155
Shagreen
From Turkish "saghri" and means the croup of a beast. Originally
made in Persia from hides of asses, horses and camel, probably
untanned. Seeds of a species of Chenopodium were trampled into
the skin when it was moist and shaken out when it dried, thus
leaving granular indentations. The material was then stained. In
the 17th cent and later, shagreen was made either of finely
granulated shark skin or of the skin of a ray fish, whose pearl like
papillae were ground flat, leaving a lovely pattern.
Side Leather
Large hides are cut in half down the backbone to make them
easier to handle in the tannery. Each piece is called a side. Most
shoe leather made from cattle hides is produced as side leather,
while most upholstery leather produced from hides is processed
as whole hides. Increasingly the cutting of hides into sides is done
after tanning, at the wet blue stage.
Skirting leather
A specialised cattlehide leather used for the skirts or hanging
portions of saddles that come between the legs of the rider and a
horse's flanks.
Skivers
The grain of the wool sheepskin when it has been split in order to
prepare a suede leather for manufacture into chamois leather.
Normally tanned with vegetable materials for use as in shoe
lining, bookbinding or leathergoods.
Slat
Vegetable tanned sheepskin produced from a skin whose wool
has been removed by the sweating process. Mazamet in France is
a famous source of slats.
Splits
The lower flesh side section of a hide (normally) or a skin after it
has been split. Normally made into a suede split.
156
Staking
Mechanical softening of leather. Done by hand by pulling skins
over a moon shaped knife, but mostly by machines of which tow
types are common. The old "grab" staker with crocodile jaws
which come together at a point where the operator offers the hide
or skin and pulls the leather away from him while he restrains it
carefully and the vibrating through feed machine invented in
Czechoslovakia in the sixties. The former is more precise, but is
also more labour intensive and skilled, while if not used carefully
will lead to tearing and loss of area.
Stocks
A wooden device previously used in oil tannages especially for
chamois. Two wooden hammers pound the oil into the leather
prior to hanging in a hot room for the oil to oxidise. The hammers
are driven by an eccentric wheel. This process is now done in
drums where temperature and humidity can be carefully
controlled.
Strop Leather
The leather from which razor strops are made. The best grades
are tanned from the shells of horse hides.
Suede
The finish produced by running the surface of leather on an
emery wheel, with the result of ruffling up the fibres and giving it
a "nappy" appearance. The grain of leather may be suede
finished (called nubuck) but the process is more appropriate to
flesh or split surfaces. The name was applied (originally in France)
to a glove leather of Swedish origin and only later to the finish
that characterised the material.
Suspenders
One series of vats or pits used in tanning heavy leathers, the
hides being hung so as to be exposed as freely as possible to the
action of the liquor. The suspender pits usually contain the
weakest liquor, and the hides are treated in them before passing
to the handlers and layers.
157
Swamp
An area near the Manhattan side of Brooklyn bridge just south of
the current City Hall set aside for tanning in 1664. Remained for
275 years.
Sweating
A process for loosening the hair or wool on a hide or skin by
hanging the pieces near together in a close atmosphere, thus
encouraging bacterial action. It has now become comparatively
rare, being confined to out of the way places or primitive
industries, and to a few special trades like that centering about
Mazamet in France
T:
Tawing
The old English term applied to the process of making leather
with alum to distinguish it from tanning in a strict sense, the
latter term having been originally confined to leather making with
vegetable tanning agents. The English word has now become
nearly obsolete, but in French the distinction between tannage
and megissage is still strictly drawn.
Tacking
A process of stretching leather at certain stages in the
manufacture by tacking it on a frame or board. the method seems
crude and slow, but is very effective for counteracting the
shrinkage which follows certain operations, without applying
excessive strains on particular portions of a piece.
Toggling
A modernised method of tacking to dry leather, using toggles to
hold the leather instead of nails. Originally the toggles were fixed
into holes in a perforated metal plate which was put in an oven.
More modern machines find and clip the leather mechanically.
V:
158
Vacuum Drying
A method of drying leather taking advantage of the fact that
moisture evaporates more quickly under vacuum. The wet leather
is laid out on a wet steel plate (often slicked, a form of hand
setting out) and the vacuum head brought down. After retanning
and fatliquoring the leather can be dried to either 30% and then
hang dried or in some circumstances fully dried direct. Drying
only takes two to five minutes. A newer use of vacuum drying
involves using a rubber base instead of stainless steel. While the
leather is under vacuum this rubber base expands outwards,
stretching the leather out from its centre. I have seen a page of
newspaper pulled into jigsaw-sized pieces by this machine. It is
not so good for taking out large amounts of moisture but good for
the drying after conditioning and staking of soft leathers. Avoid
using it just for area gain.
Vellum
Vellum is practically the same thing as parchment but is made of
calfskin. The word is derived from the Latin vitulus, a calf, whence
our word veal. Drum leather is a specialised form variety of
vellum, made nowadays in diminished quantities for the purpose
indicated by its name.
W:
Wet Blue
Chrome tanned leather. Chrome tanning creates a blue colour in
the leather and there is a natural safe resting stage just after
tanning when the leather is both wet and blue. A significant stage
in which leather is traded semi-processed worldwide.
Wet White
Hides and skins with the hair or wool removed and preserved
after a light aluminium tannage. More stable than pickle.
Increasingly used as an intermediate stage for transporting and
selling hides and skins
159
LEATHER PRODUCTS
LEATHER CRAFTS SUPPLIES

Leather Fringes
Leather Ribbons
Leather Straps
Leather Belt Blanks
Leather Threads
Leather Buttons
Leather Toggels
Leather Strings
Leather Tassels
160
Leather Beads
Leather Clasps
Leather Buckles
Leather Clips
Leather Clamps
Leather Eyelets
Leather Zippers
Leather Cords
Leather Pipings
Leather Laces
Suede Leather Laces
Nappa Leather Laces
Buff Leather Laces
Cow Leather Laces
Goat Leather Laces
Leather Belting Laces
Calf Leather Lacings
Leather Braids
Braided Leather Cords
Braided Leather Lacings
 LEATHER MACHINERY & EQUIPMENT:

Airing-Off Machines
Band Filtration Plant
Boarding Machines
Buffing Machines
Carding Machines
CO2 De-Liming Equipment
Cooling Plants
Degreasing Plants
Desalting Equipment
Dosing Equipment
Drying Machines
Dyeing Machines
Felt Products
Finish Dryers
Fleshing Handling Equipment
161
Hand Tools
Hide Curing Machines
Hide Siding & Stamping Machines
Leather Testing Equipment
Measuring Machines (Wool-on)
Milling Machines
Packing Equipment
Palletising & Depalletising Equipment
Pigment Pumps
Plating & Ironing Machines
Polishing Machines
Printing Machines
Rebalding Machines
Roll Coating Machines
Rotary Filtration Plant
Salt Applicators
Sammying Setting Machines
Seasoning Machines
Shaving Compactors
Shaving Machines
Skiving Machines
Spiral Knives
Waste Treatment Equipment
Stretching Machines
Testing Machines
Trimming Machines
Weaving Equipment
Tying Machines
Vacum Dryers Machines
Weighting Machines
Wet Wheel Machines
Wool Compactors
Wool Pulling Machines
Wringers Machines
Air Blast De-dusting Machines
Area Extension Machines
Band Knife Splitters
Brushing Machines
Bundling Machines
162
Chrome Recovery Equipment

Color Matching & Dosing Equipment
Conditioning Machines
Curtain Coating Machines
Dehairing / Unharing Machines
Dust Control Machines
Extractors Machines
Filter Presses
Finishing Machines
Fleshing Machines
Glazing Machines
Heat Recovery Machines
Hide Processing Machines
Hide Washing Machines
Linked Processing Lines
Milling Drums
Padding Machines
Perforating Machines
Plate Washing Machines
Platting / Embossing Machines
Pressing Machines
Putting Out Machines
Recirculation Systems
Roller Machines
Rotary Shearing Machines
Sammying Machines
Scudding Machines
Setting Out Machines
Shaving Conveyors
Siding Machines
Sorting Machines
Splitting Machines (Lime / Wet Blue)
Spraying Machines
Stacking Machines
Swabbing Machines
Tipping Machines
Trimming Tools
Turn-Key Tannery
Washing Equipment
163
Wet Buffing Machines

Wheeling Machines
Wool Dryers
Wool Removal (Sweating) Machines
 LEATHER CHEMICALS:
Acetic Acid
Acrylic Retans
Adhesives
Alkalies
Ammonium Chloride and Sulfate
Antioxidants
Antirock Sprays
Bactericides
Bates and Enzymes
Binders
Bleaching Chemicals
Borax, Boric Acid
Calcium Formate
Casein
Cationic Oils
Caustic Potash
Caustic Soda
Chestnut
China Clay
Colloidal Clay
Defoamers
Degras
Degreasing Agents
Dehairing / Unhairing Agents
Deodorizers
Detergents and Soaps
Disinfectants
Disodium Phosphate
Dispersing Agents
Dry Colors and Pigments
Dyeing Auxiliaries
164
Egg Yolk
Emulsified Oils and Waxes
Emulsifiers
Esters
Fat Liquors
Fillers
Finish Strippers
Urethane Finishes
Water Resistant Finishes
Finishing Agents
Flame Retardants
Formic Acid
Fragrances
Fungicides
Furrier Supplies
Hematine
Hydrogen Peroxide
Impregnants
Leather Care Products
Leveling Agents
Ligno Sulfates
Magnesium Hydroxide
Marine Oils
Neats Foot Oils
Neutralizing Agents
Oborants
Penetrating Agents
Pigments
Plasticizers
Plate Release Wax
Quebracho
Acrylic Resins
Synthetic Resins
Resin Binders
Resin Emulsions
Sequestering Agents
Slip Agents
Soaking Assistants
Sodium Bicarbonate and Carbonate
165
Sodium Bichromate
Sodium Bisulfate
Sodium Bisulfite
Sodium Formate
Sodium Hexa-Mata Phosphate
Sodium Hydroxide
Sodium Sulfide
Sodium Sulphate
Sodium Sulphydrate
Stain Resistants
Stuffing Compounds
Sulfated Oils
Sulphonated Tallow
Sulphuric Acid
Surfactants
Swabbing Oils
Syntans
Tallows
Tanning Extracts
Waste Control Chemicals
Waterproofing Agents
Waxes
Whitening Materials
Zirconium
 LEATHER RAW MATERIALS:

Bovine Hides
Brine Cured Hides
Buffalo Leather
Cabretta Leather
Calf Skins
Chamois
Crust Hides
Dry Hides
Fish Leather
Deer Hides
Horse Leather
Kangaroo Leather
166
NuBuck Leather
Pickled Hides
Pigskins
Rabbit Hides
Leather Raw Hides
Snake Leather
Sheep Leather
Skivers
Slink Skins
Wet Blue Hides
Wet Salted Hides
 LEATHER FURNITURE
Leather Sofas
Leather Chairs
Leather Sectionals
Leather Recliners
 LEATHER ACCESSORIES
Leather Bags
Leather Tote Bags
Leather Saddle Bags
Leather Golf Bags
Leather Handbags
Leather Shoulder Bags
Leather Travel Bags
Leather Duffle Bags
Leather Book Bags
Leather Bean Bags
Leather Briefcase Bags
Leather Leather Bags
Leather Laptop Bags
Leather Camera Bags
167
Leather Wallets
Ladies Leather Wallets
Men's Leather Wallets
Leather Passport Wallets
Leather Chain Wallets
Leather Travel Wallets
Leather Credit Card Wallets
Leather Purses
Leather Backpack Purses
Leather Coin Purses
Leather Cases
Leather Phone Cases
Leather Key Cases
Leather Pen Cases
Leather Cigar Cases
Leather Passport Cases
Leather CD Case
Leather Card Holders
Business Card Holders
Credit Card Holders
Leather Business Organizers
Leather Key Chains
Leather Picture Frames
Leather Jewelry Boxes
Leather Briefcase
Leather Backpacks
Leather Portfolios
Leather Portfolios
 LEATHER FASHION JEWELRY

Leather Chokers
Leather Necklaces
Leather Bracelets
Leather Hair Clips
Leather Arm Bands
Leather Earrings
Leather Rings
168
 LEATHER GARMENTS & CLOTHING
Leather Shirts
Leather Jackets
Leather Trousers
Leather Vests
Leather Coats
Leather Jeans
Leather Gloves
Leather Chaps
Leather Shorts
Leather Caps
Leather Blazers
Leather Thongs
Leather Overcoats
Leather Belts
Kids & Children’s Leather Clothing

Girls Leather Skirts
Girls Leather Tops
Kids Leather Jackets
Kids Leather Shorts
Kids Leather Trousers
Kids Leather Gloves
Mens Leather Garments

Mens Leather Shirts
Mens Leather Jackets
Mens Leather Trousers
Mens Leather Vests
Mens Leather Coats
Mens Leather Jeans
Mens Leather Caps
Mens Leather Overcoats
Mens Leather Gloves
Mens Leather Shorts
Mens Leather Blazers
169
Mens Leather Hats

Mens Leather Belts
Mens Leather Outerwear
Mens Leather Innerwears
Mens Leather Thongs
Mens Leather Chaps
Womens Leather Garments

Womens Leather Lingerie
Womens Leather Shirts
Womens Leather Tank Tops
Womens Leather Tops
Womens Leather Coats
Womens Leather Jeans
Womens Leather Jackets
Womens Leather Skirts
Womens Leather Trousers
Womens Leather Vests
Womens Leather Shorts
Womens Leather Panties
Womens Leather Capris
Womens Leather Thongs
Womens Leather Bra
Womens Leather Overcoats
Womens Leather Gloves
Womens Leather Pants
Womens Leather Belts
Womens Leather Blazers
Womens Leather Chaps
Industrial Clothing
Industrial Leather Gloves
Industrial Leather Shoes
Industrial Leather Trousers
170
LEATHER EXPORTERS IN INDIA
Following are the names of few leather exporters

in India.
Anira Exports - Bombay.

Antler Leather - Chennai
Aress International
Asiatic Leather Handicraft - Calcutta.
AVS International Pvt.Ltd
171
Carlo - Manufacturer and exporter of quality leather goods.

Chandrani Compliments & Export Private Limited.
Classic Export - Calcutta.
Crescent Export Syndicate - Calcutta.
DCP Synthetics Pvt Ltd
Edcons Exports Private Limited. - Calcutta.
Export Collection
Farinni Exports Pvt. Ltd. - Calcutta.
Fuzz Leathers
Genius Leathercraft Ltd
GPK Exports - Calcutta
Hatigor Exports Limited.
IGT Exports Ltd. - Govt. of India Recognised Export House.
Jalan Exports
Kabir Leathers
KAG Exports - Maduri.
Kamal Exports
Leatherman
Mahanati Exports Private Limited.
MB Export International
Mercury Exports
Packtec Enterprises
Puma Exports Private Ltd - Calcutta.
Punihani International
Tuhina Leather Industries - Bangalore.
Skin Craft
172
Tara Exports.
Etc.
INDIAN LEATHER MANUFACTURERS
ISLAM INTERNATIONAL
Wholesale exporter and supplier of briefcases including leather briefcases, leather
portfolio, leather executive briefcases, designer leather briefcases, leather business
portfolio and leather presentation portfolio.
Address: 29 Miajaan Ostager Lane, 1st Floor, Kolkata - 700 017, India
173
Phone: +(91)-(33)-22833627 Fax: +(91)-(33)-22893528

Website: http://www.islam-international.com/
HORE COTTAGE INDUSTRIES PVT. LTD.

Wholesale suppliers of ladies leather bags, leather designer bags, leather hand
bags, men's leather wallet, leather wallet purses, leather shoulder bags, leather
evening bags, leather ladies purse, ladies leather wallets and leather pouches.
Address: 160, Lake Town, A Block, Kolkata - 700 089, India
Phone: +(91)-(33)-25345447 Fax: +(91)-(33)-25345447
Website: http://www.horecottage.com/
MAHA LEATHER
Manufacturer and exporter of finished leather, raw leather like sheep leather, goat
finished leather, cow leather, buff leather, upholstery leather, printed dry mill
leather, soft shoe upper leather used for making seat cover, furniture, home
furnishings.
Address: 1/388, Shanmuga Nagar, Pozhichalur, Chennai - 600 089, India
Phone: +(91)-(44)-22521688 Fax: +(91)-(44)-22521688
Website: http://www.indiamart.com/mahaleather/
RUDRA ENTERPRISES
Deals in selling and manufacturing of leather card holder, leather business card
holder, leather credit card holder. Also deals in pvc files, leatherite punchless clip
files, small leatherite punchless clip files, F/S punchless clip files and file folder.
Address: 3645-47/10-11, Gali Lohe Wali, 3rd Floor, Chawri Bazar, New Delhi -
110 006, India
Phone: +(91)-(11)-23947481/30518241 Fax: +(91)-(11)-23918281
Website: http://www.anejaplastic.com/
MEGAA INDIAN ARTS

Supplier and manufacturer of various leather goods and leather accessories like
leather key rings, leather files, leather folders, portfolio planners, leather bags,
crafted leather carry bags, leather portfolio bags, leather executive bags etc.
Address: 9th Floor, Flat-A9, CIC Building, 33A, Chowringhee Road, Kolkata -
174
700 071, India

Phone: +(91)-(33)-40219200/22172461 Fax: +(91)-(33)-22172713
Website: http://www.megaaindianarts.com/
FARIS EXPORT
Engaged in manufacturing and exporting of leather equestrian products, animal
leather clothing, leather saddles, leather bridles, leather headstalls, leather brest
plates, leather rugs, leather riding chaps and leather brest collar.
Address: M. G. 4 / 4, K. D. A. Colony, Jajmau, Kanpur - 208 010, India
Phone: +(91)-(99350)-29920
Website: http://www.indiamart.com/farisexport/bridle.html
NEW ERA OVERSEAS, NEW DELHI

Producing and exporting handmade paper gifts such as slip pad, greeting card,
letter writing set, pen stands, printed and dry flower greeting card, gift box,
hanging lamp shade, photo frames, wine carry bags.
Address: C-49, Vivek Vihar, Phase-I, Delhi - 110 095, India
Phone: +(91)-(11)-22168326/22158326 Fax: +(91)-(11)-43061308
Website: http://www.neweraoverseas.com/
KUDOS EXPORTS
Deals in manufacturing and exporting of pet use products that includes dog collar,
dog blanket, saddle bag, synthetic saddles, hoof boots and western bridle. Also
supplies breeches, leather jackets and horse rugs.
Address: 283 C, Shyam Nagar, Kanpur - 208 013, India
Phone: +(91)-(512)-3200522/2423611 Fax: +(91)-(512)-2423611
Website: http://www.indiamart.com/kudosexports/
IMAGES INTERNATIONAL
Producers and suppliers of leather goods and accessories like designer leather
belts, fancy leather photo frames, designer leather folders, fashion leather glass
cases, decorative leather pen holders, leather file folder and other leather
accessories.
175
Address: 43-A, L. G. F., Amrit Nagar, South Extension, Part-1, New Delhi - 110
003, India
Phone: +(91)-(11)-24656111/24644040 Fax: +(91)-(11)-24644040/24602039
Website: http://www.imagintl.com/
AA TO ZZ BUYING SERVICES
Suppliers of leather goods such as leather garments, quality leather goods, designer
leather goods, fashion leather goods, leather handicrafts and leather apparels.
Address: B-291, Okhla Industrial Area Phase -1, New Delhi - 110 022, India
Phone: +(91)-(11)-26811347 Fax: +(91)-(11)-26811345
Website: http://www.indiamart.com/indiabuyingservices/
P.S. DAIMA AND SONS

Indian manufacturer, supplier and exporter of a wide range of leather laces
including round leather lacing, split suede leather lacing, buff leather lacing,
braided bolo leather lacing, calf craft leather lacing etc.
Address: RZ-156, Sayed Nangloi, New Delhi - 110 087, India
Phone: +(91)-(11)-25252690/25266744/25254281
Website: http://www.psdaimaandsons.com/laces.html
NEW ERA OVERSEAS, DELHI

Engaged in supplying of leather products like embossed leather journals, leather
photo frames, stitched leather journals, leather sleeves, leather writing journals,
blank leather journals, refillable leather journals and suede leather journals.
Address: C-49, Vivek Vihar, Phase - I, Delhi - 110 095, India
Phone: +(91)-(11)-22168326/22158326 Fax: +(91)-(11)-43061308
Website: http://www.leatherjournals-accessories.com/
DAFFODILS OVERSEAS
Manufacturers and exporter of leather bags, leather wallets, leather handbags,
leather purses, leather coin pouches, ladies leather wallets, gents leather wallets,
leather designer bags, ladies leather purses, leather wallet and leather executive
bags.
Address: 40/1404, Jayhind Subhash Nagar, Chembur, Mumbai - 400 074, India
176
Phone: +(91)-(22)-65217315
Website: http://www.indiamart.com/daffodilsoverseas/
SUDESH ART & CRAFTS PVT. LTD.

Manufacturer and supplier of various leather bags like designer leather bags,
decorative leather bags, colorful leather bags, designer ladies bags, jewelery
pouches, embroidered pouches etc.
Address: E-36 / 202, Jawahar Park, Laxmi Nagar, Vikas Marg, Delhi - 110 092,
India
Phone: +(91)-(11)-43043577 Fax: +(91)-(11)-43043577/22824244
Website: http://www.sudesh-artncrafts.com/
THINK FASHION, DELHI

Engaged in manufacturing and exporting variety of leather bags including
embroidered leather bag, fashion leather bags, designer leather bag, soft sheep
leather bag, tanned leather bag along with leather belts and leather purses.
Address: B- 2548, IInd Floor, Dsidc, Narela, New Delhi - 110 040, India
Phone: +(91)-(11)-27783246 Fax: +(91)-(11)-27783246
Website: http://www.thinkfashionin.com/leather-bags.html
BALAJI INDUSTRIES, MAHARASHTRA

Manufacturers and exporters of leather bags, leather ladies purses, leather purses,
portfolio bags, office bags, camera bags, hand bags, shoulder bags, travel bags,
laptop bags, leather hand purses, leather camera cases and office cum laptop bags.
Address: Gala No. -103, Everest Tiles Compound,18 Indl Area, Piparia, Silvassa,
Daman - 400017, India
Phone: +(91)-(22)-24012390 Fax: +(91)-(22)-24012390
Website: http://www.balajimaniks.com/
POPPYS INTERNATIONAL
Manufacturer and exporter of leather goods, leather fashion accessories, ladies
bags, leather shoulder bags, travelling bags, leather wallets, leather portfolios,
leather belts, leather business organizers, leather key rings and fashion key chains.
Address: 87/111, Bhannana Purwa, Kalpi Road, Kanpur - 208 003, India
177
Phone: +(91)-(512)-3016092,3016093 Fax: +(91)-(512)-2691160

Website: http://www.indiamart.com/poppysinternational/
DHARANI EXPORT-IMPORT SERVICES (P) LTD.

Exports and supplies an extensive range of leather chemicals such as nitro
cellulose, acpol grounds, aksol binders, ambilac cems and ambilac clears. Also
offering food colours, allura red food colours, black PN food colours and food
flavours.
Address: 20/1, VVD Road, Tuticorin - 628 003, India
Phone: +(91)-(461)-2330856/4000900 Fax: +(91)-(461)-2325551
Website: http://www.indiamart.com/dharani-exim/
EMMAR INTERNATIONAL
Manufacturer and supplier of leather gift sets such as wallets gift sets, business gift
sets, corporate leather gift sets, promotional gift sets, occasional gift sets,
handcrafted gift sets, designer gift sets and decorative gift sets.
Address: 613, Raheja Centre, 214, Nariman Point, Mumbai - 400 021, India
Phone: +(91)-(22)-22831577/22834562/22831672 Fax: +(91)-(22)-22872242
Website: http://www.emmarinternational.com/leather-bags.html
GIFTS AND PROMOS WORLD WIDE

Manufacturer and exporter of corporate gift items, corporate leather gifts, leather
key chains, promotional pens, leather bags, carry bags, desktop utility items,
promotional caps, promotional t-shirts, promotional mugs, promotional umbrella
and awards.
Address: No. 18/19, Eden Gardens, S. T. Road, Deonar, Mumbai - 400 088, India
Phone: +(91)-(22)-25565422 Fax: +(91)-(22)-25586161
Website: http://www.giftspromos.com/
NALSONS (INDIA)
Manufacturers and suppliers of leather bags including suede leather bags, nappa
leather bags, buffalo leather bags, cow leather bags, calf leather bags, designer
leather bags, leather hand bags, leather shoulder bags and ladies leather bags.
Address: B-77 Old Jasola Village, Behind Apollo Hospital, Mathura Road, New
178
Delhi - 110 025, India

Phone: +(91)-(11)-65434794 Fax: +(91)-(11)-29943726
Website: http://www.nalsons.com/
ASIAN ADORES
Manufacturing leather diaries covers, leather journal covers, leather book covers,
leather notebook covers, leather agenda covers, leather passport cases, document
holders, leather portfoilos, leather planners, leather organizers and folders.
Address: 105, Madhu Industrial Estate, Mogra Village Road, Andheri (East),
Mumbai - 400 069, India
Phone: +(91)-(22)-28348890/28350577/28218292 Fax: +(91)-(22)-28350577
Website: http://www.adoragifts.com/agenda-covers.html
JUST HIDES
Engaged in manufacturing of leather organizers, leather schedulers, leather key
holders, leather bags, fancy leather handbags, leather wallets, leather key chains,
folders, hip pouches, belt pouches, pencil pouches, key pouches and toilet pouches.
Address: 17, P.K Rangaswamy Street, Thiruvalluvar Nagar, Vellore - 632 001,
India
Phone: +(91)-(416)-4203828 Fax: +(91)-(416)-4205828
Website: http://www.indiamart.com/justhides/
GUTS AND GLORY LEATHERS

Manufacturing and exporting all types of leather equestrian goods such as leather
saddlery, leather harness, leather horse rugs, leather horse bridles and leather horse
halters. Also deals in winter rugs, nylon fabric rugs and woolen blanket rugs.
Address: 102/88, Wajidpur Jajmau, Kanpur - 208 010, India
Phone: +(91)-(512)-3268264 Fax: +(91)-(512)-2464261
Website: http://www.bridlenhalter.com/
JAGDHAN INTERNATIONAL
Manufacturers and exporters of promotional leather gift items like leather belts,
pencil case, cosmetic case, cushion covers, dairy cover, womens bags, clutch
purses, wallets and card holders.
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Address: 248/3/B, G.T. Road (N), Liluah, Howrah - 711 204, India
Phone: +(91)-(33)-26557672/26554052 Fax: +(91)-(33)-26551821
Website: http://www.jagdhan.com/
ABHISHEK IMPEX, MUMBAI

Specializes in manufacturing and exporting leather chemicals, industrial leather
chemicals and organic leather chemicals like as monochloroacetic acid,
chloroethanoic acid, chloroacetic acid, chloracetic acid and other chemicals for
industrial use.
Address: 202/A2-1, Veer Hanuman Nagar, LM Road, Dahisar(W), Mumbai - 400
068, India
Phone: +(91)-(22)-28933984 Fax: +(91)-(22)-28912615
Website: http://www.abhishek-impex.com/monochloroacetic-acid.html
BAG MAKER
Exporters and manufacturers of mens leather wallets and purses available sheet
nappa and suede leather in different colours like black, brown and tan. Also
supplying womens nylon bags, womens beach bags, womens tote bags.
Address: Plot No. 522 , 523, Sector - 37, Pace City - II, Gurgaon - 122 004, India
Phone: +(91)-(124)-4228000 Fax: +(91)-(124)-4228005
Website: http://www.bagmakerindia.com/mens-leather-wallets.html
RADIANT CHEMICALS, MUMBAI

Manufacturer and exporter of adhesives & chemical like water soluble colorant,
water insoluble colorant, electrical chemical, leather industry chemical, oilfield
chemical, oilfield corrosion inhibitor, paper & plastic industry chemical.
Address: 155 / 57, Samuel Street, Hingkee Bldg, 3rd Floor, Off. No. 304 & 305,
Mumbai - 400 009, India
Phone: +(91)-(22)-66311933/23471934 Fax: +(91)-(22)-23471934
Website: http://www.radiantchemicals.com/
SAHYOG EXPORTS PVT. LTD.

Suppliers and exporters of ladies footwear, gents footwear, leather footwear, ladies
leather slippers, gents leather footwear, gents leather slippers, fancy leather
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slippers, ladies leather wedges, ladies chappals and ladies beaded slippers.
Address: 9 & 29, Makharia Indl. Complex, Plot No- 27, Mahakali Caves Road,
Andheri (East), Mumbai - 400 093, India
Phone: +(91)-(22)-26873628/26873835/66921785 Fax: +(91)-(22)-26874596
Website: http://www.indiamart.com/sahyogexports/leather-designer-footwear.html
SHIVAM NARROW FABRICS

Manufacturers, suppliers and exporters of leather cords, leather drawcords, leather
belts, leather tapes, leather laces, leather threads, leather strings and various types
of woven customised tapes.
Address: 34- Q, Laxmi Industrial Estate, Link Road, Andheri (W), Bombay - 400
053, India
Phone: +(91)-(22)-26335010/66922244/40670670/40107411-12-13-14-15 Fax:
+(91)-(22)-66922244
Website: http://www.snfexports.com/
RAMA KRISHNA GOYAL SHOP - M

Engaged in manufacturing and supplying of leather goods such as leather album,
leather files, leather folders, embossed leather folders, plain leather diary,
handmade leather photo album, leather wrist bands, karol leather folders, leather
wallets, etc.
Address: 59, Koliwara, Udaipur - 313 001, India
Phone: +(91)-(294)-2417089/2528382 Fax: +(91)-(294)-5101520/2417089
Website: http://www.handmadepaperproduct.com/
MADHAV INTERNATIONAL
Manufacturing and exporting designer footwear like ladies hand embroidered party
slippers, embroidered leather slippers and leather hand painted ladies slippers.
Also offers embroidered hand bags and beaded bags for ladies.
Address: R. Z.-54, Chandan Colony, Village Saidulajab, Ignou/ Neb Sarai Road, P.
O. Mehrauli, New Delhi - 110 030, India
Phone: +(91)-(11)-65145300/29532456 Fax: +(91)-(11)-29536456
Website: http://www.madhavfashions.com/leather-accessories.html
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LEATHER CHOICE, CHENNAI

Leading supplier of leather handbags, fancy handbags, fashion handbags, ladies
handbags, ladies fancy handbags, leather travel bags, designer leather travel bags
along with fashion leather jacket, designer leather jacket and men leather jacket.
Address: 1, Muthu Street 1st Floor, Periamet, Chennai - 600 003, India
Phone: +(91)-(44)-25612959 Fax: +(91)-(44)-25615565
Website: http://www.indiamart.com/leatherchoice/
TRANSWORLD TRADING INC.

Manufacturers and wholesale suppliers of handcrafted ladies footwear, mens
leather footwear, ethnic footwear, v shape light weight footwear and eva sole
synthetic upper footwear.
Address: 2994/2A, Street No. 17, Ranjit Nagar, New Delhi - 110 008, India
Phone: +(91)-(11)-65480516 Fax: +(91)-(11)-25703954
Website: http://www.indian-handicrafts-manufacturers.com/ladies-mens-
footwear.html
AQSA INTERNATIONAL
Manufacturer and exporter of finished leather like sheep skin leather, finished
sheep leather, processed sheep leather, sheep nappa leather, brown nappa leather,
black nappa leather, nubuck sheep leather and sheep cabretta leather.
Address: 1105/D, PJ Nehru Road, Vaniyambadi - 635 751, India
Phone: +(91)-(4174)-228501 Fax: +(91)-(4174)-226311
Website: http://www.indiamart.com/aqsainternational/
UNITED EXIM KANPUR
Manufacturer and exporter of leather belts, beaded leather belts, embossed leather
belts, designer leather belts, woven leather belts, metallic buckle belts, brass
buckle belts, double punch belts, vintage stud belts, fashion leather belts.
Address: 14/106, Civil Lines Kanpur, Kanpur - 208001, India
Phone: +(91)-(512)-2530512 Fax: +(91)-(512)-2530512
Website: http://www.indiamart.com/unitedexim/
SHARMA LEATHER PRODUCTS P. LTD.
182
Manufacturer and exporter of men's leather bags, ladies leather bags, leather travel
bags, leather office bags, leather laptop cases, leather portfolio bags, leather
handbags, ladies leather shoulder bags, leather wallets and leather purses.
Address: 10 F, East Topsia Road, Kolkata - 700 046, India
Phone: +(91)-(33)-22853211/32901680 Fax: +(91)-(33)-22853992
Website: http://www.sharmaleather.com/
GREEN EARTH INTERNATIONAL

Manufacturers and exporters of wide range of fashion and designer bags including
ladies hand bags, shoulder bags, beach bags, festive occasional bags, printed bags,
jute pouches, jute leather bags, jute fashion bags and union fabric bags.
Address: 32, Armenian Street, Ist Floor, Kolkata - 700 001, India
Phone: +(91)-(33)-9830026178/25837230/22725935 Fax: +(91)-(33)-25832622
Website: http://www.baghunt.com/high-fashion-bags.html
PARADISE NOBLE CREATIONS

Engaged in supplying of leather products like leather horse saddles, horse harness,
leather horse bridles, leather halters, leather chaps and stirrup leather.
Address: 20- A, Co Operative Industrial Area, Kanpur - 208 022, India
Phone: +(91)-(512)-2295113 Fax: +(91)-(512)-2218267
Website: http://www.indiamart.com/paradisenoble/
PARAS INDIA EXPORTS

Exporters and sellers of beaded canvas bags, leather bags, suede leather bags,
canvas bags, embroidered bags, jute carry bags, embroidered canvas bags, denim
bags, denim back pack, jute bags. Also offer leather cushion covers and kitchen
gloves.
Address: D-16/175, Sector - 7, Rohini, New Delhi - 110 085, India
Phone: +(91)-(11)-65731089 Fax: +(91)-(11)-47019723
Website: http://www.indiamart.com/parasindiaexports/
SG EXPORTS
Engaged in manufacture and supply of finished leathers such as finished cow
leathers, silk printed leathers, embossed finished leathers, stretched leathers and
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finished buff leathers available in different colors, prints and patterns.

Address: 31, 1st Floor, Functional Industrial Estate Patparganj, New Delhi - 110
092, India
Phone: +(91)-(11)-22158059 Fax: +(91)-(11)-22158078
Website: http://www.sbmdubai.com/leather-products.html
KHALIQUE SONS INTERNATIONAL

Engaged in exporting and manufacturing of horse leather clothing, animal leather
clothong, leather saddle, leather halter, leather lead, horse leather saddle, leather
saddle, horse saddle, dogs coats, horse rugs, exercise sheets and combo fly sheets.
Address: 4/25, Bhikampura Street, Farukhabad - 209 625, India
Phone: +(91)-(5692)-246042 Fax: +(91)-(5692)-246489
Website: http://www.indiamart.com/khaliquesons/
SKIN CRAFT
Engaged in manufacturing of leather garments of men and women such as leather
coats, ladies leather dresses, leather long coats, leather overcoats, leather trench
coats, leather jackets, men's leather coats, leather trousers and leather jeans.
Address: B-12/3, Okhla Phase-11, New Delhi - 110 020, India
Phone: +(91)-(11)-41707250/41707251 Fax: +(91)-(11)-41707252
Website: http://www.indiamart.com/skincraft-leather-garments/
RIYA IMPEX
Manufacturing and suppling of leather footweats, leather shoes, leather boot,
leather ballerina. Also supply woven ready made garments, leather shirts, ladies
jackets, ladies long coats, leather trousers, men's manfred.
Address: A-9, Milap Nagar, Uttam Nagar, New Delhi - 110 059, India
Phone: +(91)-(11)-28566104/28565080 Fax: +(91)-(11)-28565207
Website: http://www.indiamart.com/riyaimpex/
HI-GLO HOLO IMAGES PVT. LTD.

Manufacturing and exporting different types of stickers, labels and hologram
sticker like printed hologram labels, 3d holographic films, 3d hologram labels,
dome labels, hologram labels, hologram shrink labels, metal labels and tamper
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proof holograms.
Address: Near Bhakra Bridge, Vill Rauni, Patiala-Nabha Road, Patiala - 147 004,
India
Phone: +(91)-(175)-2366852/2366998/2365691 Fax: +(91)-(175)-
2366998/2366852
Website: http://www.indiamart.com/higlo/
POOJA EXPORTS
Engaged in manufacture of leather bags, leather wallets, leather business planners,
leather executive bags, leather business organizers, ladies hand bags, leather
briefcase, leather card holder, leather mobile cover, leather file folders and key
chains.
Address: A/67, Jai Bajrangbali Co-op Society, Khambdev Nagar, Sion-bandra
Link Road, Mumbai - 400 017, India
Phone: +(91)-(22)-24072860 Fax: +(91)-(22)-24072860
Website: http://www.indiamart.com/poojaexports/
DHIREN CHEMICAL INDUSTRIES

Manufacturer and supplier of leather industry chemicals, leather treatment
chemicals such as wetting agent & emulsifier, emulsifiers for fat liquors, apeo free
biodegradable for wetting detergent, for degreasing and for dispersing.
Address: 118, Panorama, R. C. Dutt Road, Baroda - 390 007, India
Phone: +(91)-(265)-6621219 Fax: +(91)-(265)-2331119
Website: http://www.indiamart.com/dhirenchemical/
BLACK JACK INDIA LIMITED

Manufacturer, supplier and exporter of leather tool bags, leather carpenter apron,
leather dry wall bag, leather two pockets nail bag, fixed hammer holder, revolving
hammer holder.
Address: D - 63, South City - 1, Gurgaon - 122 001, India
Phone: +(91)-(124)-3250048/4269922/23 Fax: +(91)-(124)-4269766
Website: http://www.blackjacktools.com/tool-bags.html
AKIN SONS
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Dealers and manufacturer of safety shoes like industrial safety shoes, safeguard
safety shoes, work safety shoes, men's safety shoes, antistatic safety shoes, leather
safety footwears, leather safety shoes and mens safety footwears.
Address: 557, Pati Ram Street, Delhi - 110 006, India
Phone: +(91)-(11)-23236730 Fax: +(91)-(11)-23231420
Website: http://www.indiamart.com/akinsons/
PAM INTERNATIONAL
Manufacturers and exporters of ladies leather hand bags, fashion handbags, fancy
handbags, leather evening handbags, leather travel bags, leather executive bags,
ladies leather wallets, mens leather wallets, leather purses and leather coin purses.
Address: 15, Janak Road, Kolkata - 700 029, India
Phone: +(91)-(33)-24610493 Fax: +(91)-(33)-24610493
Website: http://www.indiamart.com/pamxports/
STAR ADVERTISERS
engaged in supplying and exporting of leather goods &
accessories such as leather desk accessories, leather office laptop bags,
leather office briefcase, leather corporate bags, leather desk sets, leather corporate
planners, etc.
Address: 1/371-B, Shastri Colony, Main Link Road, Faridabad - 121 001, India
Phone: +(91)-(129)-4044866/6517331
Website: http://www.indiamart.com/staradvertisers/
V. I. FASHIONS
Manufacturers and exporters of fashion bags such as leather fashion bags, colored
fashion bags, ladies fashion bags, designer fashion bags, crafted fashion bags. Also
sells leather shopping bags, leather wallet, leather evening bag, leather purse, etc.
Address: 24/6 Kustia Masjid Bari Lane, Kolkata - 700 039, India
Phone: +(91)-(33)-26671806 Fax: +(91)-(33)-22874502
Website: http://www.indiamart.com/vifashions/
INTERLABS HAS
Engaged in production of corporate gifts and promotional gifts like handmade
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paper gifts, paper gift bags, paper note books, gents leather wallets, ladies leather
wallets, leather travel bags, executive leather bags and wooden paintings.
Address: 6262/26 & 6262/26/2, IDGAH Road, Cross Road No. 8, Interlabs
Complex, Ambala - 133 001, India
Phone: +(91)-(171)-2633304 Fax: +(91)-(171)-2643484
Website: http://www.indiamart.com/interlabs-has/
ARESS INTERNATIONAL
Manufacturing and exporting leather bags, leather purses, leather hand bags, ladies
leather bags, leather wallets, mens leather wallets, ladies leather wallets, designer
mens leather wallets.
Address: 98, Sarai Jullena, 2nd Floor Near Escorts Heart Institute, New Delhi -
110 025, India
Phone: +(91)-(11)-65352942/23230330 Fax: +(91)-(11)-26906751
Website: http://www.aressintl.com/leather-hand-bags.html
ANGEL FASHIONS
Exporters and suppliers of leather accessories like mens wallets, leather wallets,
fancy leather wallets, black leather wallets, multiple pockets leather wallets and
designer leather wallets. Also offer mens wear formal shirts and pants.
Address: No. 3/188 Muthamizh Nagar, Kodungaiyur, Chennai - 600 118, India
Phone: +(91)-(44)-25590570
Website: http://www.indiamart.com/angelfashions/readymade-garments.html
PADMAVAHINI SAFE TECH PRIVATE LIMITED

Engaged in manufacturing and exporting of leather gloves like leather industrial
gloves, leather safety gloves, leather leg guard, driving gloves, leather welding
gloves, comfortable leather gloves. Also deals in pvc hand gloves, hosiery hand
gloves.
Address: Door No. 7/140- 5, Ruby Matriculation School Road, Keeranatham,
Saravanampatti, Coimbatore - 641 035, India
Phone: +(91)-(422)-6531222
Website: http://www.indiamart.com/padmavahinisafetech/
187
TECHNO COLOR CORPORATION

Manufacturer and wholesale supplier of leather dyes and leather dyes colors. Also
export acid mordant dyes, acid milling dyes, non-benzidine direct dyes, acid dyes,
acid metal complex dyes, textile and fabric dyes, solvent dyes and food colors.
Address: Pitru Chhaya, Sanghvi Estate Govandi Station Rd, Govandi(E), Mumbai
- 400088, India
Phone: +(91)-(22)-25576668/24071961/55973368 Fax: +(91)-(22)-25576578
Website: http://www.indiamart.com/technocolour/
SECOND MAY INTERNATIONAL

Manufacturers of ladies leather handbags, leather touch bags, leather organizers,
leather coin purses, canvas bags, jute bags, fashion bags, beach bags, packing bags,
wine bags, multipurpose bags and mobile covers.
Address: D- 147, EPIP, Site- 5, Kasna, Greater Noida - 201 306, India
Phone: +(91)-(120)-6456844/6549094 Fax: +(91)-(120)-2341194
Website: http://www.secondmay.net/wine-gift-leather-bags.html
SFM BUYING SERVICES

Buying house and exporters of leather bags, ladies leather bags, designer leather
bags and ladies designer leather bags. Also supplying wall hanging, stuffed wall
hangings, designer wall hangings and decorative wall hangings.
Address: Khasra # 10/1, (4-6) Old Highway, Delhi - Gurgaon Road, Samalka, New
Delhi - 110 037, India
Phone: +(91)-(11)-25061203/25061119/25061120 Fax: +(91)-(11)-25061201
Website: http://www.indiamart.com/sfmbuyingservices/
ESS AAR UNIVERSAL PRIVATE LIMITED

Manufacturer and exporter of footwear soles and slippers including shoes soles,
PU soles, footwear soles, leather footwear soles, men footwear soles, mid soles,
female feet soles, kids footwear soles, bathroom slippers, ladies slippers, mens
slippers.
Address: A-40/1, Site- IV, Industrial Area, Sahibabad - 201 010, India
188
Phone: +(91)-(120)-2896012/2896074 Fax: +(91)-(120)-2895951

Website: http://www.essaarpu.com/polyurethane-soles.html
SADDLES INC, BANGALORE

Engaged in manufacturing and exporting of aniline leather, glazed leather, nappa
leather, polished leather, soft leather. Also available with finished aniline leather,
stallion leather, mustang leather, nappa studio and napkin holder.
Address: 131, 6th cross, 4th A main, N.S. Palya, Btm II Stage, Bannerghatta Road,
Bangalore - 560 076, India
Phone: +(91)-(80)-26783120/26781965 Fax: +(91)-(80)-26783121
Website: http://www.indiamart.com/saddlesinc/
BENGAL EXPORTS
Exporting and manufacturing ladies leather bags, leather hand bags, ladies leather
hand bags, ladies hand bags, designer bags, hand purses annd ladies leather purses.
Also deals in minerals, food grains, garments and other fashion accessories.
Address: 60, Lenin Sarani, 2nd Floor, Kolkata - 700 013, India
Phone: +(91)-(33)-22469796/22263993 Fax: +(91)-(33)-22469803
Website: http://www.indiamart.com/bengalexports/
RAJU SAFETY PRODUCTS

Engaged in manufacturing and supplying of industrial safety products like safety
hand gloves, nylon harness, helmet with tourch, safety shoes, fire suits, life jacket,
window climbing belt and leather safety belts.
Address: 312, Abubakar Chawl, Bagicha, Dharavi, Mumbai - 400 017, India
Phone: +(91)-(22)-24028377 Fax: +(91)-(22)-24018271
Website: http://www.indiamart.com/raju-safety/
PIONEER OVERSEAS
Manufacturing woven leather rugs, hand woven leather rugs, leather mats and
woven leather mats in various designs and textures.
Address: 217, Suneja Tower-II, District Center, Janakpuri, New Delhi - 110 058,
India
189
Phone: +(91)-(11)-25511126 Fax: +(91)-(11)-25551026

Website: http://www.pioneer-overseas.com/
J.S. CREATIONS
Manufacturers and exporters of leather products like leather bags, ladies leather
bags, leather wallets, leather purses, leather clutches, leather credit card holders,
leather passport holders, leather planners, leather portfolios and leather cases.
Address: 14/E, Tiljala Shibtola Lane, Kolkata - 700 039, India
Phone: +(91)-(33)-23443445 Fax: +(91)-(33)-23444575
Website: http://www.indiamart.com/jscreations-leather-goods/
A. N. PAL CHOWDHURY ENGG ENTEPRISES

Engaged in manufacturing and supplying of leather wallets, ladies leather wallets,
mens leather wallets, tirfold leather wallets, bifold leather wallets, leather chain
wallets along with scaffolding couplers, column clamps, props clamps.
Address: 23-A, Netaji Subhas Road, 3rd Floor, Room No. 11, Kolkata - 700 001,
India
Phone: +(91)-(33)-26518511/26511511 Fax: +(91)-(33)-22304471
Website: http://www.anpengg.com/whatweoffer.html
POOJA INTERNATIONAL
Leading manufacturer and exporter of fashion footwear, designer footwear,
embroidered footwear, ladies sandals, beaded sandals, mens leather shoes, leather
formal shoes, designer shoes, party wear sandals and fancy sandals.
Address: 29-NC, Block- B, New Alipur, Kolkata - 700 053, India
Phone: +(91)-(33)-24588213 Fax: +(91)-(33)-24788420
Website: http://www.indiamart.com/poojainternational/
COLORSOFPASSION
Manufacturer and wholesale exporter of leather mojris, designer leather mojris,
fancy leather mojris, ladies leather mojris and trendy leather mojris. Also
manufacture leather cushion covers, leather belts and leather automobile seat
covers.
Address: 212/213, Building No.5 Jogani Industrial Estate, Mumbai - 400 022,
190
India
Phone: +(91)-9892211017 Fax: +(91)-(22)-24057887
Website: http://www.indiamart.com/colorsofpassion/
CALBOT & CO.

Manufacturer, supplier and exporter of leather products such as leather animal
figurine, decorative leather animal figurine, leather camel figurine, leather horses
figurine, leather deer figurine, leather elephant figurine and leather giraffe figurine.
Address: D- 110, Sector- 40, Noida - 201 303, India
Phone: +(91)-(120)-4340211/3250756
Website: http://www.indiamart.com/calbot/
BAWA LEATHERS
Manufacturer and supplier of Indian markets for leather bags, leather executive
bags, leather travel bags, laptop bags, medical representative bags, leather
briefcases, leather wallets and leather kit bags.
Address: 11071, Street No. 2, Doriwalan, Karol Bagh, New Delhi - 110 005, India
Phone: +(91)-(11)-32600727
Website: http://www.indiamart.com/bawaleathers/
CRESCENT TANNERY
Exporters and manufacturers of leather organizers mobile phone covers, leather
jackets, telephone diary, pen holders, key rings, pouches, designer wallets, leather
bag, bags, travel bags, coin purses and other leather accessories.
Address: 81/1 Tiljala Road, Kolkata - 700 043, India
Phone: +(91)-(33)-23448923/23434210 Fax: +(91)-(33)-23438869/22843651
Website: http://www.crescenttannery.com/
AMERICOS INDUSTRIES INC.

Manufacturing organic solvents and pigments, organic polymer resins, leather soft
chemicals, textile softeners, dyes, chemicals and colors like speciality chemicals,
dyestuffs, dpdf colors for denims, textile enzymes.
Address: B-610/611, Ganesh Plaza, NR Navrangpura Post Office, Ahmedabad -
380 009, India
191
Phone: +(91)-(79)-26447781/26447782/26447736 Fax: +(91)-(79)-26447736

Website: http://www.kenencoregroup.com/organic-polymer-resin.html
SRF FABRICS
Engaged in manufacturing and supplying of variety of leather bags, laptop bags,
laptop computer bags, leather laptop bags, leather laptop computer bags, designer
laptop bags, designer leather laptop bags and strap handled laptop bags.
Address: 1254/3 , New Bhawani Peth, Burudipool, Pune - 411 042, India
Phone: +(91)-(20)-26356287/26332881
Website: http://www.indiamart.com/srf-fabrics/
AEON OVERSEAS
manufacturers and exporters of handicraft products, handmade paper, handmade
photo albums, handmade gift boxes, handmade gift bags, triangular boxes,
handmade journals and handmade notebooks.
Address: D14 / 07 First Floor, The Presidency, Ardee City, Sector 52, Gurgaon -
122 012, India
Phone: +(91)-(124)-4144490 Fax: +(91)-(124)-2572762
Website: http://www.indiamart.com/aeonoverseas/handmadepaperitems.html
GEETANJALI IMPEX DELHI

Manufacture and supply leather wallet, mens leather wallet, card holder, business
card holder, gents wallet, designer leather wallet, visiting card holder, laptop bag,
promotional laptop bag, file folders, leather file folders and travel utility kits.
Address: D- 153, Sector - 40, Noida - 201 301, India
Phone: +(91)-(120)-4340905/43409056
Website: http://www.indiamart.com/geetanjaliimpex/
192
BIBLIOGRAPHY
INTERNET SITES:
• www.google.com
• http://dgciskol.gov.in/Dgcis.htm
• www.ministyofcommerce.com
• www.tradeportalofindia.com
• www.indianleathercouncil.com
• www.wikipedia.com
• www.councilofleatherexport.com
• www.eximbankindia.com
193
BOOKS
• Marketing management – By Philio Kotler
• Britannica encyclopedia
ARTICLES:
• IICCI – Short Market Overviews-the indo-Italian chamber of

commerce and industry
• Strategies for Enhancing the Competitiveness of Leather

Industry in India, by Mrs. Anamika Singh
• EXIM BANK: RESEARCH BRIEF,Indian Leather Industry:

Perspective and Export Potential
194

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INDIAN

YMCA BUSINESS SCHOOL

“FOR EVERY OPPORTUNITY MAY GOD BE

I am very thankful to our teacher Dr. Shamsher for

The project Indian Leather Industry has been

CHAPTE TOPIC PAGE

2. THE INDIAN LEATHER INDUSTRY:

3. GOVERNMENT ROLE IN INDIAN

 Major Production Centres 60

5. PROMOTION AND MARKETING OF

6. EXPORT PROCEDURES AND

 Certificates Related To Shipment 85

 Documents Related To Payment 89

8. FUTURE PROSPECTS OF INDIAN

 Integrated Leather Development 112

 Leather Sector Impact-Interim Budget 113

 Weaknesses of Indian leather indusrty 116

 Remedial measures 121

 Impacts of current recession on Indian 123

 Leather industry glossary 126

The basic objective of undertaking this project was to

I collected the data using various primary and secondary

The Leather Industry is a significant segment of the

The Indian leather industry is provided with institutional

OBJECTIVES OF THE STUDY

1. To study the role of Leather Industry in Indian

2. To examine the export potential of leather

3. To analyze the various Documents for findings out

4. To explain the role of Indian Government in Indian

5. To suggest any improvements necessary in the

THE LEATHER INDUSTRY – AN OVERVIEW:

The leather industry occupies a place of prominence in the Indian

Indian leather industry today has attained well merited

There came the long awaited dusk to the complacence of the

“Leather Fashion”- A Hot Tip:

cannot ignore the timeless crocodile and python prints in elegant

The leather industry has undergone a dramatic transformation

 cattle, including calf and ox

WORLD LIVESTOCK POPULATION:

WORLD RAW HIDES AND SKINS PRODUCTION:

WORLD LEATHER EXPORTS:

World leather exports grew moderately, by a CAGR of 7.3%, from

WORLD LEATHER IMPORTS:

ENVIRONMENTAL ASPECTS FOR LEATHER

THE INDIAN LEATHER INDUSTRY

sector accounts for large processing capacity ranging from 70-

 India is the largest livestock holding country -21% large

 Export growth CAGR 11.91% (5 years)

COMPOSITION OF INDIAN LEATHER

ESTIMATED PRODUCTION CAPACITIES:

Leather Footwear 909 million pairs

STRENGTHS OF INDIAN LEATHER

 World-class institutional support for Human Resources

INDIA’S EXPORT OF LEATHER AND LEATHER

India’s Export was growing at a CAGR of 11.91% in the last 5

The leather industry, one of the major foreign exchange earners

Export Scenario for the last 5 Years

% Share of Leather Products in Export

INDIA’S IMPORT OF RAW HIDES & SKINS AND

MAJOR IMPORTING COUNTRIES OF INDIAN

THE COUNTRY-WISE PERFORMANCE FOR FIVE

(Value in Million US$)

Source: DGCI & S