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Monday, June 28, 1999

Favourable trends help leather council scale heights in export performance 

Joseph Vackayil  
CHENNAI, JUNE 27: The Council of Leather Exports (CLE), under its new chairman MM Hashim, has chalked out elaborate strategies to make use of the favourable global trends to take the exports of leather and leather products far beyond the last year level of about Rs 7000 crore, though it is a record figure.

In 1998-99 exports in rupee terms had shown 12.97 per cent increase. But in dollar terms there has been a -1.6 per cent decline to $ 1630.11 million from the previous revised figure of $1656.69 million.

For 1999-2000 the commerce ministry has set a target of $1700 million which the industry feels is easily achievable. Hashim and other leading leather exporters in Chennai are exuding great optimism as the world trend is very favourable to Indian leather.

Some of the promising global factors are:

  • India is the partner country to the world's largest shoe fair- GDS international shoe fair in Dusseldorf, Germany, in September (9-12).
  • The Baltic crisis has forced the Italian and Germanbuyers to come back to India in a very big way for leather footwear, components and garments.
  • Large American buyers are actively in the market for sourcing leather goods or for manufacturing tie-ups.
  • CLE plans to expand the North American markets and explore new avenues in Central America as it had done last year in Latin America and West Asia.
  • The new markets recently developed by CLE in Latin America and West Asia are responding well and orders for over Rs 50 crore have been realised.
  • Italy is extended partner country status to Italy in the forthcoming India International Leather fair in early 2000.

    The positive trend is already manifest and there has been at least 10 per cent more orders in April and May, the chairman said. The Italians and Germans have placed orders for about 5 million pairs of shoes in the last three months and the over 200 shoe factories, big and small, are working to full capacity. ``They are going to stay with us if we would be able to meet theirneeds in price, quality and quality'', says M Rafeeque Ahmed, a leading exporter and chief of the footwear cell of CLE.

    GDS International shoe fair, held twice a year in March and September, has become the global trendsetter and the premier fair for leather footwear in the world. Germany is India's leading trading partner accounting for over 22 per cent of its exports of leather and leather products. CLE and individual exporters have been participating in this fair since a few years and for September, India is given partner country status and CLE and others together are getting ready to display Indian capabilities in over 1300 sq.m space.

    Hashim says the special events with Rs 1.25 crore government support, planned at GDS include brief presentation about the Indian participation at the official inauguration of fair on September 9, fashion shows thrice a day for three days, an exclusive international press meet to project India's image on the second day of the fair, and organisation of an `India Day' byinviting potential importers of Indian products, decision makers in various international associations, Indian participants and senior government officials from Germany and India connected with the industry.

    The impact of the fair will be visible in the second half of this financial year in a very significant manner, CLE officials feel.

    Another major fair, again in Dusseldorf in November (2-5) is the `A + A' fair for industrial safety shoes, gloves and allied products. India has a very strong leather supply and manufacturing base for these products mostly in Kanpur. The exports of these products from Rs 100 crore now is slated to grow to Rs 400-500 crores in a few years.

    By extending partner country status a large number of machinery manufacturers and leather and leather products buyers are expected to come to the India International Leather fair during January 31-February 4, 2000.

    Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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