Double-digit growth continues
09/07/2008
Leather exports from India continue to grow. Leather for the footwear segment, the fastest-growing area for Indian leather producers, recorded a 30.9% rise—reaching $1.1 billion—for the last financial year until February, compared to the same period in 2006–07. The figures come from the Indian Finished Leather Manufacturers and Exporters Association (IFLMEA).
For the past three years, leather footwear has maintained a double-digit growth, with the current figure standing at 14.8%.
Leather garments used to be the fastest-growing segment, but for the past few years, footwear and women’s accessories (bags, belts and wallets) have taken the top two slots, according to IFLMEA chairman Dr Zackria Sait. Garments are still a good business proposition, especially in the European countries, he insisted.
Returning to footwear, Farida Group chairman, M Rafeeque Ahmed, recently told local media: “Leather footwear is the engine of growth for the leather industry. Footwear comprises 65% of total leather exports worldwide, but is under 40% in India. So, it is only bound to grow at a faster rate.”
But the appreciating rupee has affected the industry quite a bit. “We’re in the middle of the selling season and have to maintain prices till October. But input prices have gone up. So, we have to bear the brunt,” Mr Ahmed said.
But companies exporting goods under their own brand name have not been hit too much. “Since its our own brand, we have some flexibility in revising prices, so we haven’t been hit as badly as other exporters,” Mr Kapur said.
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