2Agenda Leather Sector Global National Andhra Pradesh Slaughter Houses Animals SlaughteredPromotion of Leather ParksGlobal Players in Leather Sector
3Global Leather and Leather Products Trade (percentage)OthersChina22.029.7ItalyIndonesia188.8.131.52.61.7Taiwan2.43.0KoreaSpain3.410.0Brazil4.04.0GermanyFranceHong KongIndiaRomania
4Global Leather and Leather Products Trade (in US $ Mill)2146422386ExportsImports15433101839649705567015778393037403628233421923078256624952226ChinaItalyHong KongFranceGermanySpainIndiaUSABelgium
5Indian Leather Map India is the second largest footwear producer. India is the third largest exporter of saddlery and harness items.India is the third largest producer of leather goods after China and ItalyIndia is the fourth largest supplier of leather garments.Annual Turnover/ Production - Rs 25,000 CroresDomestic Sales – Rs 14,200 croresAnnual Export - Rs 10,800 Crores (43%)2.5 million employment direct and indirectLargest Livestock holding country - A sources about 10% global requirement of Leather.One employment for every Rs 35,000 investmentInvestment to turnover ratio 1:4
6Major production Centre : Tamil Nadu, West Bengal, Uttar Pradesh, Punjab & Andra Pradesh. Leather exports from India account for around 3% of the total global leather exportsIndia’s consumption of leather products is expected to grow at around 3-4% per annum in the near future.11th Plan(US $ mill)10th PlanDomestic projections43382198Footwear Segment19671387Other Leather commoditiesExport Projections962606Finished Leather31921035Leather Footwear416328Leather Garments905511Leather Goods24076Saddlery & Harness273138Leather Gloves122936279Total6
7Indian Leather sector Capacity after modernization during 10th Plan % GrowthCapacitySector29.111,468Tannery (mill. Sq. ft)49.0115.96 croresFootwear (pairs per annum)30.0028.38 lakhsSaddlery (pieces per annum)53.0029.30 lakhsLeather garments (pieces per annum)36.009.30 croresFootwear Components (pairs per annum)43.0018.34 croresLeather Goods (pairs per annum)
9A major employment generator and contributor to social and gender equity, where 35% of women forces and workers.About 2.5 million employees are working and about 2.5 million employees working in-directly. The work force is expected to be increased by an another one million.Of the 321 million hides and skins processed annually by the industry, 85% is sourced domestically. A major export revenue earner for the country.Value addition through technologies and up gradation is highest in the country.Most plants are clustered within the states of Tamil Nadu, West Bengal, Uttar Pradesh, and PunjabTamil Nadu accounts for 70% of leather tanning capacity (225 million processed pieces annually) in India and 38% of leather footwear & components. The exports from Tamil Nadu are about US $ 762 million, which account for 42% of Indian leather exportsTN has over 9000 registered small and medium firms and about 70 large scale firms and about 40 composite firms
10Animal Population top States 482.20(in lakhs)399.80204.60167.04158.000.38APUPMahMPTNRajasthanA.P. provides 10% of India’s raw material, yet, tanning and finishing sectors have not grown significantly to completely utilize the available raw materials resourcesAP could tan only 5% of the raw materials due to lack of tanning facilities Balance 95% is transported to other States where value addition is undertaken at the cost of A.P.There are around 30 tanning units in AP with minimal tanning and processing capacity.
11Number of Slaughter Houses Total Number of Slaughter Houses - 447 25AdilabadHyderabad4732SrikakulamNizamabadKarimnagar882630Vizianagaram24Warangal7MedakVisakhapatnam58KhammamRanga ReddyEast GodavariWest GodavariNalgonda12372416KrishnaGuntur12Mahabubnagar933Prakasam> 25 NosBetween 10 & 25< 10Kurnool124AnatapurNelloreKadapa563ChittoorTotal Number of Slaughter Houses - 447
12No. slaughtered during 2007-08 % Growth of Animals in AP & Animal Slaughtered during(in lakhs)No. slaughtered during%increaseNo. in 2007No. in 2005AnimalS.No20.8517.0245.85210.15Sheep19.6351.997.6564.27Goat24.8127.5137.28107.68Buffalo31.1621.9114.8994.28Cattle40.89-20.84.355.49Pigs5
13District-wise animals Slaughtered during 2007-08 108411AdilabadHyderabadSrikakulam188732301779Karimnagar50230Nizamabad13490129264Vizianagaram629451Warangal142671Medak53297VisakhapatnamKhammam364178Ranga Reddy13016875518West GodavariNalgondaEast GodavariKrishna9730833092239368GunturMahabubnagar303103Total Number of animals Slaughtered – 37,34,89152531218598PrakasamKurnool135718Anatapur78080Sheep 20,84,583Goats 9,63,586Buffaloes 4,81,184Cattles 1,16,354Pigs ,184NelloreKadapa73510218564Chittoor> 2.00 lakhsBetween 1.00 lakh and 2.00 lakhs< 1.00 lakh
14(in lakhs) No of Animals slaughtered in AP during 2007-08 20.85 9.64 4.811.160.89SheepGoatBuffaloesCattlePigs(in lakhs)Total Animal slaughtered- 37,34,891
15Promotion of LIDCAP Leather Parks/Projects Krishnapatnam International Leather ComplexShifting of Hyderabad Tanneries – Promotion of Kunoor Leather ParkPromotion of Mega Leather Park at Rukmapur in KarimnagarPromotion of Mega Leather show room at Autonagar, VijayawadaPromotion of Mega Leather Park at Gangadhara Nellore in ChittoorPromotion of 18 Mini Leather Parks and leasing to the SC entrepreneurs for setting up of leather productsHS Darga Leather Products Production & Training CentreTirupathi Leather Park Development
16International Leather Complex GO issued onTotal Land – acresLand in APIIC possession – acresLand to be obtained from APGENCO – acresProject Cost – Rs croresLIDCAP’s GOI grant - Rs croresIIDF - Rs croresSPV - Rs crores
17Shifting of Hyderabad Tanneries Progress on the Kunoor (Bhongir), Nalgonda Leather ParkTotal land – 120 acresTotal 10 units proposed - each in 5 acresLIDCAP – 5 acresGOI given Rs 3.00 crores, State Govt. given Rs crCETP completed with Rs cr.Rs 31.5 lakhs spent on approach road through PR Dept.Units in the Kunoor Leather ParkM/s. Hamsa Impex Ltd.M/s. South India Prime TanneriesM/s. Ever Green LeathersM/s. Hyderabad LeathersM/s. Roshan best Tanners4 units have completed construction, one unit commenced production, one unit completed machinery installation
18Progress on the Kunoor (Bhongir), Nalgonda Leather Park M/s Hamsa Impex Ltd. & M/s. South India Prime TanneriesM/s Hamsa Impex Ltd. & M/s. South India Prime TanneriesVvacantM/s. Roshan best TannersvacantM/s. Hyderabad LeathersvacantCETPvacantLIDCAP
19Progress on the Kunoor (Bhongir), Nalgonda Leather Park M/s Hamsa Impex Ltd.Common Effluent Treatment Plant
22Promotion of Mega Leather Park at Rukhmapur, Karimnagar (Footwear)1. Covered in the CM’s Announcement (dated: )2. Area of the land acres at Rukmapur (V), Choppadandi (M) for establishment of Leather Park3. CLRI prepared a Project Report for establishment of footwear complex for Rs 98 crores
23Promotion of Mega Leather Park at Gangadhara Nellore, Chittoor (Tanning)1. Area of the land – acresDKT land – acresDKT alienated land – acresGovt. Land – acresPatta land – acres2. Location - 9 Kms from Chittoor, 40 Kms from Ranipet, 150 Kms from Chennai, potential for the tanneries.3. LIDCAP has paid Rs 73 lakhs on to District Collector.
24Promotion of Mega Leather showroom at Autonagar, Vijayawada LIDCAP is having its own land of about Sq. Mts in the Autonagar, Industrial Estate Vijayawada on the main road of Benz Cirle to Machilipatnam road.Only 403 Sq. Mts of land is being used for shoes / Chappal show room, office building and manufacturing unit. since 1974The Area of the plot after the required minimum set offs on all side is 2,000 sq. mts (21,528 sft)It is proposed to construct a Mega Leather Complex with a private participation in the project. It is proposed to construct two cellars (Lower Cellar and Upper Cellar), Ground Floor plus 8 floor building complex.L I D C A PBJR Mega Leather Show Room
25Tirupathi Leather Park LIDCAP is having 4.5 acres of land in the outskirts of the Tirupathi City4 buildings are constructed of which one building (about 800 Sft) is leased to one small industry and one building (about 600 sft) is being used as Regional OfficeTwo more buildings (of each 2000 sft) is for the purpose of training (presently not being used). It is proposed to lease this buildings along with foot wear training machinery and also part of the office building.