The Manufacturing in Leather Industry has a very vital place in the Indian economy according to the view of its massive potential for exports, growth and employment. The exports of leather and leather products is on the verge of rise from the past two decades.There has been an increasing emphasis on its development which is aimed at an utilization of available raw materials for maximizing the returns, particularly from exports. There has been a great growth in exports from Rs.320 million in the year 1965-66 to Rs.69558 million in 1996-97. Leather industry now has attained merited recognition in international markets besides occupying a major place among the top seven foreign exchange earners of the country.
The leather industry has undergone a drastic transformation from a mere exporter of raw materials in the sixties to that of value added finished products in the nineties. Transformation has happened due to the policy initiatives by the government that boosted the leather industry. And now, with the help of globalization, leather industry is all set to take up initiatives and grow for better and have a brand name in the world.
Environmental aspects for leather products
Manufacturers who can produce environmentally sound products will enjoy a competitive advantage in all business relations with EU in general and Germany. Therefore, the manufacturers must view their products and production processes not just by looking at traditional aspects like price, quality, customer demands, etc. but also at the environment. The pitch must be successfully set up so that the environmental soundness of the product in the information to the buyers attracts attention which will contribute to the role of the environmental regulations. 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 the inputs has been banned due to their carcinogenic nature. Consumers may tend 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 with the permission and is not fake .Likewise, for compliance with the German packing regulations; Indian suppliers must stick to the basic principle that packaging material be recyclable and reusable.
Global Scenario of Leather Industry:
The global trade in leather industry and leather products has been increasing over the years thus giving a way to overtake other industries.
Although the exports of Indian leather and leather products have grown manifold during the past decades, our country’s share in global trade is around 3% among world imports of leather products. India’s share in world imports of leather garments is 6%. Major exporting countries of leather garments are China (36% share), Germany (9% share), Italy (7% share), Turkey (5% share) and Pakistan (4% share).. Whereas India’s share in world imports of leather footwear is 1%. Major exporting countries of leather footwear are China (14% share), Portugal (6% share), Brazil (5% share) and Indonesia (4% share).
India’s share in world imports of harness and saddlery is 8%. Major exporting countries of harness & saddlery are Germany (14 % share), U.K. (14 % share), China (12% share).
India’s share in world imports of leather goods is 7%. Major exporting countries are China (22% share), Italy (22 % share), France (7% share) and Greece (5% share),
Overall, India is facing fierce competition in international market from countries like China, Vietnam, Thailand, Indonesia, etc., which are emerging as major manufacturing countries in the leather industry.
East European countries like Poland, Romania, Czech and Slovak Republics have re-emerged as major production centres particularly for footwear sector. These countries pose major challenge to Indian exporters as they enjoy geographical advantage. This was all about the leather industry and about the products.
Now, let’s have a look about the manufacturing in leather industry.
Leather industry has its own way and procedures and works accordingly. The competition grows day by day and therefore manufacturers must work hard on meeting the demands of the customers. As the competition increases, customers demand for excellent quality and due to this manufacturer must go for the best.
For this, manufacturer first must purchase the raw material from the right source. Sourcing the raw material right way is very important to produce excellent quality leather products. If the sourcing of raw materials is not done rightly, then the quality decreases and ultimately will affect the growth of the leather industry itself.
After the sourcing part, it is important to control the outflow and inflow of multiple products effortlessly. Because if you can’t handle the production and look after the bills, then there are chances that you can mess up. Therefore, manufacturing segment must be careful when the production is in bulk.
Manufacturers should look after the customer records and provide them with the best services so that they gain more consumers and help their industry grow up instantly. The manufacturing segment also should make smart decisions so that their vision extends and they can aim for better always that will help them to achieve their goals.
Also, manufacturers should keep in mind that they utilize the best of raw materials with minimum wastage so that they can recycle or reuse it again for other purposes. Leather industry is quite big and if the wastage is done less then it will in return give them profit in future. Therefore, manufacturing in leather industry has to go through specific process to give their customers, a better quality leather products.