Flayer

Current Trend and Future Growth of Leather Sector in India

The leather industry in India produces approx.?1055 billion worth of leather in various forms. Out of this, 661 billion (62%) is consumed domestically and the remaining is exported (37%). This share of consumption and export is estimated to change and in 2020 India will account for 1.4 trillion (59.1%) worth of domestic consumption and earn 673 billion (40.9%) worth from exports.

Organized retail is expected to grow at a CAGR of 25% to reach USD200 Billion by 2020.

Demand growth for leather goods is expected from footwear, bags, purses, furniture etc. all driven by the Indian consumption boom. Penetration of export markets is expected to rise in the wake of increased sourcing by global retail majors and luxury brands. Key segments for human resource development in the industry include finished leather, leather footwear and leather goods.

The variety of finished leather goods comprise of classic finishes (polish, glazed, aniline, patent), matt surfaces (suedes, nubuck), nappa and burnished. Indian tanning industry produces more than two billion square feet of leather per annum. The industry has the tanning capacity to fulfill 10% of world?s leather requirements. Major tanning hubs in the country are Ambur, Ranipet, Chennai, Kolkata, Kanpur, Jalandhar, etc. There are roughly 2091 tanneries in the country.

The sector currently employs over 3.09 million employees and is slated to employ more than 6.8 million employees by 2022. This implies additional creation of approx.3.7 million jobs in the nine-year period. The finishing leather segment currently employs 0.23 million people and is expected to employ 0.58 million people by 2020. This will result in an incremental growth of around 0.35 million jobs.All these factors will result in more job opportunities for candidates applying in this sector across India.