AN INSIGHT INTO THE LEATHER

India contributes 13% of the world’s Leather production making it the second-largest producer or manufacturer of Leather garments and footwear. It accounts for an industry of around USD 12 billion and is making unstoppable advancements in the sector. It is estimated that the Leather industry in India will amount to USD 25 – USD 30 billion. As for the Detergent industry, it recorded a value of INR43,500 crore in 2019-20 and is expected to widen its marketing to INR 70,000crore by 2026-27. Let’s discuss these industries in a detailed manner.

Leather Industry-

The growth of the Leather industry in India is driven by the following factors:

1. Availability of required raw materials.

2. Modernization and Expansion in the concerned sector.

3. Growth of Exports.

4. Conducive government policies etc.

The Government of India allowed 100% Foreign Direct Investment (FDI) in the leather industry with the help of an automatic route. Almost 70-75% of the Indian leather products are exported to the United States and Europe.

India’s Leather industry persists in the following sectors namely;

1. Footwear – 40.35%

2. Leather Garments- 8.05%

3. Saddlery- 2.08%

4. Harness- 3.05%

5. Other leather products- 46.47%

Centers for Leather production in India:

The major production centers of footwear and other leather products in India are:

1. Jammu & Kashmir- Srinagar.

2. Punjab- Jalandhar.

3. Haryana- Panchkula, Gurgaon, Ambala.

4. Rajasthan- Jaipur.

5. Madhya Pradesh- Dewas.

6. Maharashtra- Mumbai.

7. Telangana- Hyderabad.

8. Tamil Nadu- Chennai.

9. West Bengal- Kolkata.

10. Uttar Pradesh- Noida, Agra.

11. Kerala- Kozhikode.

12. Delhi.

The main sources of exports for leather consist of skins as well as hides of animals such as sheep, cows, goats, etc. India’s export items include Footwear, leather garments, leather handbags and gloves, purses and wallets, etc.

Top 10 Leather Brands in India:

1. Nike.

2. Reebok.

3. Bata.

4. Khadim’s.

5. Lloyd.

6. Spencer.

7. Stacy Adams.

8. Liberty.

9. Lee Cooper.

10. Clarks.

Top 5 Indian Leather exporters.

1. Hindustan Lever Ltd.

2. Presidency Kid Leather Ltd.

3. Tata International Ltd.

4. RSL Industries Ltd.

5. Florind Shoes Ltd.

Achievements in the Indian Leather industry:

1. Skill Development Training has been provided to 95,350 persons who were unemployed in the Leather industry and almost 70,850 trainees have been given placements.

2. The launching of the Indian Footwear, Leather & Accessories Development Programme(IFLADP) has generated employment opportunities in the country. This led to the approval of four big projects with an outlay of around 15.5million.

The foreign investors in the leather industry include:

1. The Apache Group (Taiwan).

2.  Itares(Italy).

3. Feng Tay Shoes (Taiwan).

Detergent Industry:

Household cleaning chemicals or compounds are known as Detergents. Detergents are widely used for laundering as well dish cleaning purposes. The industry has seen rising demands during the ongoing global pandemic. The outbreak of Covid-19 has continued to spread awareness to the consumers to keep their surroundings clean which has resulted in the heavy demand for the industry. India’s detergent industry is worth around Rs.14,000 crores and the market players are continuously striving to improve their methodologies and product quality. For example, the introduction of liquid detergents which was not prominent a few years back has expanded the detergent market and generated huge revenue.

The detergent industry is classified into three important segments- Premium, Mid-range, and Popular.

Premium Brands- Ariel and Surf.

Mid-Range Brands- Tide and Rin.

Popular Brands- Nirma, Ghari, Wheel and White.

Market share:

Premium- 14.5-15.0%.

Mid-Range- 35%.

Popular- 40%.

The Detergent powder constitutes Rs.7 crore of the total market size and the Detergent liquids account for nearly Rs. 900 crores in India

However, the liquid detergent market has been witnessing a significant rise in the sector. The population prefers liquid gels or detergents as they are comparatively milder than powdered ones or soap bars.

Detergent Forms in India:

1. Powder forms.

2. Liquid forms.

3. Soap Bars.

4. Others.

Driving factors:

1. Increasing demand for Automated Washing machines.

2. Growth of Industrial and other institutional industries.

Statistics:

Ghari- a current market leader with a market share of 18%.

Wheel- positioned at second with a market share of 16.5%.

Tide- third with a market share of 14%.

Ghari’s cheaper and affordable rates have made it a common name in households of India.

The most popular detergent manufacturer companies are:

1. Hindustan Unilever Ltd- Affordable prices, Quality maintenance, Easy access.

2. Nirma-Popularity in their tagline, oldest detergent powder company.

3. Fena-Maintains its quality fragrance, tough stain remover.

4. Patanjali- Maintains the quality of clothes, controls bad body odour.

5. Ashirwad Group- Provides household cleaning products.

Conclusion:

Thus, we see that the leather and detergent industry has acquired a prominent place in the growth of the Indian economy owing to considerable export and the “Make in India” program implemented by the Indian government. The leather industry has provided large employment opportunities, comprising about 50% of the workforce of age under 40-45. The detergent industry has shaped itself during the pandemic where it increased its sales by 50-55% which happens to be a great achievement and gives importance to the make in India scheme.