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How furniture leather is made in India. Is China ceasing to compete with India in the leather market? leather india

It just so happened that my life is closely connected with a wonderful product - the skin. mainly leather for upholstered furniture. On this issue, I have visited many countries and cities and I want to tell you how I make leather for furniture in India.

A cow in India is a sacred animal, so Muslims are engaged in the production of leather and they use buffalo skins for this business, like these:

After the skins are removed, they are soaked in saline, which preserves them. After that, during transportation, the skins dry out (which is no wonder at a temperature of +47) and look like this:

or like this:

After that, the skins are sent to large soaking-ash drums. In these drums, the skins are filled with moisture and lose their hair under the action of alkali.

After that, the skin goes to a special machine for skinning - this is the most unpleasant and foul-smelling process. The slicing machine looks like this:

The next operation is tanning. Chrome is used for tanning and under its influence the skin turns blue, so this product is called Wet-blue (wet, deep)

Cars are not held in high esteem here, since there is enough labor force - therefore, the skins are transferred in such a medieval way:

Wet-blue is quite thick, and furniture leather is mostly 1 mm thick, so after tanning the leather is cut into two parts. The top layer is called the front split, and the bottom layer is called the bakhtormy split. From the bottom layer I do that. what we used to call suede and velor.

From above comes the front split, from below bakhtormyany:

The next stage is Dyeing and Greasing, here the skin is given color, in addition, it depends on this stage whether the skin will be soft or hard. The process itself takes place in large drums and lasts about 12 hours.

Dyeing-greasing line at another plant:

After dyeing, furniture leather is stretched on special frames. This process kills two birds with one stone - firstly, excess moisture is removed from the skin, and secondly, it stretches, which then prevents it from stretching in the finished sofa

At the next stage, the front surface of the skin is putty, which allows you to mask various irregularities on the skin (scars, insect bites, etc.)

Then the skin is polished - it becomes smooth and pleasant to the touch, with small scars, scratches just disappear.

The most common type of furniture leather is leather with a corrected face, the previous two stages are just the beginning of the “adjustment”. The next stage is the most important - the formation of a new front layer on special lines of coating dyeing:

The line consists of two parts - directly from the coating chamber and the drying chamber - where the applied paint dries:

Well, the face is done, now you need to apply embossing - embossing is applied on such machines:

The skin before embossing looks like this:

And after embossing like this:

To make the skin soft, it is broken in special drums, in order to understand this process - take a piece of paper and remember it for 30 seconds in your hands - it will become soft. The same thing happens with the skin.

That's all, the skin is ready - now you can make such a sofa out of it.

Over the past few years, we have witnessed multi-level changes that are taking place in the Chinese economy. Ten years ago, few imagined that this manufacturer of cheap fakes would grow into one of the strongest economies in the world and become the second largest market.

The change of economic roles is happening so fast that the minds of many do not have time to "keep up with the times." Could Indian leather and leather goods manufacturers have imagined even five years ago that their biggest competitor would turn into a profitable buyer? Even a year ago, the situation in the leather manufacturing market was different, but now the increase in wages has forced Chinese companies to reconsider their strategic plans and take a fresh look at the competitor.

This trend was revealed to CHaINA magazine by Indian exhibitors at the Shanghai Leather Fair 2012, held in September. in this exhibition.

And while Indian leather and leather goods manufacturers are seeking buyers in other new markets, including Australia, New Zealand and Latin America, they are aware of the huge potential the Chinese market holds for them. Moreover, European countries, which are the main market for Indian leather, have been reducing import volumes in recent years under the influence of economic instability.

It is too early to say how competitive Indian products (especially those with high added value) will be in the Chinese market, as statistics that could capture these changes have not yet been published. But we can take a look at what the leather industry in India and China has been like in recent years.

India is the sixth largest producer of leather and leather products in the world. According to the website of the Leather Export Council of India, in 2011 the size of the industry was estimated at $7.5 billion. Indian manufacturers accounted for 6% of all leather goods produced in the world and 2.78% of world leather and leather goods imports.

From 2004 to 2009, the export volume of the Indian leather industry increased from 1.62 billion euros to 2.63 billion euros. Thus, India has become the 5th largest exporter of leather and leather products in the world (according to the Leather Export Council).

If we consider the export structure of the leather industry in India, then 42% are leather shoes, 24% - leather products, 19% - processed leather, 12% - leather clothing, and 3% - saddles and harnesses.

The main importer of Indian leather and leather products is the EU - up to 65%. Moreover, the largest consumers among countries are Germany (14.1%), Italy (12.8%), Great Britain (11.5%), followed by the USA with 10%, Hong Kong (6.6%), Spain (6.1%). %), France (6.1%) and Holland (4.1%).

Leather shoes in India are also produced by many global brands, including Clarks, Ecco, Nike and even Versace. Indian-made leather clothing is supplied to Pierre Cardin, Tommy Hilfiger, Versace, Nautica, Kenneth Cole, DKNY, Hugo Boss, Ann Taylor, Liz Claiborne, Charter Club and Daniel Hector. And various goods and accessories - for Coach, Liz Claiborne, Tommy Hilfiger, Etienne Aigner, Harrods, Yves St, Laurent, Pierre Cardin, Geoffrey Beene, Marks & Spencer, Guess, Next.


What is the situation in the world leather market? If we study the statistics for 2010 Eurostat, we find out that the largest supplier of hides, raw and processed leather is Brazil, it accounts for 17.2% of the supply of products in the world, while India - 6.9%, and China - 4.5%. The largest consumer of raw and processed leather is China: local producers process 21% of all products produced in the world. India ranks 6th in this ranking with 3.6%.

We observe the opposite situation in the market of finished leather products. China provides up to 66% of all leather products in the world. India, although it ranks second in this ranking, produces only 11.2% of production. The main consumers of leather products are the following countries: Hong Kong (18% of the market), Switzerland (16.8%), Japan (14.8%) and the USA (14.1%). By the way, Russia consumes only 4.5% of leather products, and China with 1.3 billion people only 3%. Therefore, it is not surprising that the growth of the well-being of Chinese citizens opens up huge opportunities for foreign manufacturers of leather handbags, belts and shoes.

It doesn't take a special prophetic ability to predict the direction of the global leather industry in the near future. In general, the trend is obvious: China will increasingly focus on production with a higher added value, and supply cheap products for its own consumption from other countries with low wages. And in the list of main contenders, not the last place is occupied by Indian manufacturers. But I can't predict with accuracy how fast the changes in the market will take place, since too many factors influencing the processes are unknown.

The Indian leather industry occupies a prominent position in the Indian economy in terms of significant export earnings, employment and growth trend.

The role of the planned development of industry is growing in order to optimally use the available raw materials in order to obtain maximum income, especially from exports.

Exports of leather and leather goods have multiplied over the past decades. In monetary terms, exports increased from Rs 28 crore in 1956-57 to Rs 9,000 crore in 2000-01, i.e. almost 320 times in five decades (1 crore equals 10 million).

Today, the industry ranks eighth in the country's export trade.

The composition of India's leather and leather goods exports has undergone significant structural changes over the past three decades, from exports of almost all raw materials in the 1960s to exports of finished products in the 1990s. Finished products now account for 81% of the total exports of this industry, compared with only 7% in 1956-57.

Many expert committees have been formed from time to time by the Government of India in order to develop measures to increase the export of the leather sector. The beginnings of the course pursued by the Government on the basis of the recommendations of these committees were decisive for these changes.

Organizational structure of the leather industry

  • Tanning and Dressing
  • Shoes and shoe components
  • Leather clothes
  • Leather goods (bags, cases, gloves, accessories)
  • Saddlery products.

Main production centers

The main manufacturing centers for leather and leather products are: Chennai, Ambur, Ranipet, Wanyambadi, Trichy, Dindigul in Tamil Nadu, Kolkata in West Bengal, Kanpur and Agra in Uttar Pradesh, Bangalore in Karnataka, Hyderabad in Atdira Pradesh and Delhi.

Estimated production capacity for the production of leather and leather products, including non-leather footwear (1999)

Source: CLRI

Characteristics of the leather sector in India

  • Uses the labor of 2.5 million people, mainly from the weaker sector and female labor.
  • Almost 60-65% of production is the handicraft sector.
  • The annual export reaches almost 2 billion US dollars.
  • Provides 10% of the world's raw leather.
  • It has a high value added by domestic processing.
  • High return on capital investment, i.e. high capital employed turnover ratio.
  • It has huge potential for future growth (both for domestic use and for export).
  • The production complies with the state requirements of the country for environmental protection.
  • At production sites, top priority is given to safety and the quality of work to protect the environment.
  • Careful concern for consumer safety.
  • Some of the world famous leather products are sourced from India.
Industry potential

Raw material base

The country has a huge raw material base of the leather industry, numbering 212 million head of cattle, 96 million head of buffalo, 144 million goat and 53 million sheep. According to the latest statistics, India ranks first in the world in terms of livestock. These four varieties of livestock provide the raw material base for the leather industry in India.

The annual processing of 65 million whole hides and 170 million skins is a powerful industry base. A certain variety of breeds of goats, cows and sheep makes it possible to maintain a leading position in the world market in terms of the quality of leather products.

Work force

The abundance of skilled labor involved in tanning and dressing and the production of finished products is another strength in the industrial development strategy. The competitive wage level in the country is an added advantage.

Technology

Improving the technology of the tanning sector in accordance with international environmental standards, the ability to develop modern design of modern leather products, especially shoes, updating equipment and the willingness to meet changing fashion and consumer requirements, are the strengths of the Indian leather sector. A number of institutions such as CLRI, FDDI, NID, NIFT and others have been established to provide support to the Indian leather industry in research and development, product testing and quality assurance, product design and further improvement.

Environmental Protection

In recent years, India has paid serious attention to environmental protection in the tanning sector of the leather industry. 17 public and over 180 private liquid waste treatment plants operate in the country, treating 70% of the approximately 80,000 cubic meters of liquid waste received daily. In addition, a lot of solid waste, such as cuts of meat, trimmings and various protein-containing waste, wool, is processed into useful by-products. India's achievements in this field over the last less than 10 years have been praised by experts and businessmen in Europe and the US, as well as international agencies such as the United Nations Industrial Development Organization (UNIDO).

Support for related industries

The related industries, which are the leather chemical and finishing ancillary industries, the production of components, consumer products and accessories, are of great help in solving the problems facing the leather industry.

Export of the leather industry

Export of leather and leather products in 1999-2000 and 2000-2001

In million rupees

Source: DGCI& S. Calcutta
In million US dollars

India's Global Export Scenario

The volume of sales of leather and leather products in the world market is growing from year to year and in 1999 reached the level of 68 billion US dollars.

Exports of Indian leather and leather products have multiplied over the past three decades and currently account for 2.35% of world trade.

India's share of world leather imports is 1.97%. The main countries exporting leather and their share in world exports: Italy - 23.39%; Korea - 9.60%; USA - 6.80%; Argentina - 6.11%; Germany-5.72%; Brazil - 4.88%; UK - 2.94%; China - 2.88%, etc.

In world imports of leather and leather products, the share of leather shoes is 38.65%. India's share in global imports of leather shoes is 1.43%.

The main countries exporting leather shoes and their share in world exports are: Italy - 18.62%; China -15%; Portugal - 5.63%; Spain - 5.60%; Brazil - 4.28%; Indonesia - 3.61%; Germany - 3.56%; Belgium - Luxembourg - 2.69%; Great Britain - 2.56% and others.

In the world import of shoe components, India's share is 4.96%. The main countries exporting shoe components and their share in world exports are: Italy - 29.12%; Korea - 7.89%; China - 7.45%; USA - 6.98%; Romania - 5.63%; Tunisia - 3.15% and others.

In the world import of leather clothing, India's share is 11.17%. The main countries exporting leather clothing and their share in world exports are: China - 39.22%; Pakistan - 9.24%; Turkey - 7.10%; Italy - 7.02%; Germany - 5.02%; Korea - 4.98%; USA - 2.54% and others.

In the world import of leather goods, the share of India is 7.08%. The main countries exporting leather goods and their share in world exports are: Italy - 21.65%; China - 16.52%; France - 11.51%; USA - 5.22%; Greece - 83%; Thailand - 4.62%; Germany - 3.69% and others.

In the global import of leather gloves, India's share is 9.62%. The main countries exporting leather gloves and their share in world exports are: China - 35.77%; Pakistan - 2.62%; Germany - 2.02%; Italy - 1.92%; Hungary - 1.57%; Mexico - 1.20% and others.

In world imports of harness and saddlery, India's share is 8.27%. The main countries exporting harness and saddlery and their share in world exports are: China - 14.27%; Denmark - 3.98%; Mexico - 3.68%; Italy - 3.68% and others.

In the world import of non-leather shoes, India's share is 0.08%. The main countries exporting non-leather shoes and their share in world exports are: China - 26.03%; Italy - 6.73%; Belgium-Luxembourg - 4.35%; Indonesia - 3.49%; Spain - 2.61%; France - 2.06%; Thailand - 1.70% and others.

India is fiercely competitive in the world market with China, Vietnam, Thailand, Indonesia and other countries, which are becoming the leading manufacturers of leather products.

Eastern European countries such as Poland, Romania, the Czech Republic and Slovakia have reasserted themselves as leading leather manufacturing centers, especially in the footwear sector. These countries are also serious competitors to India's exports, as they have the geographic advantage of being close to the world market.

Development prospects

The global leather market is growing due to the growing demand for leather goods.

Domestic demand is also expected to increase further due to the growth of the gross domestic product and consumption patterns in general, especially for footwear and, in particular, for leather goods.

Developed countries have lost their competitive edge in the leather market and are dependent on developing countries such as India for their needs.

The leather industry of India is in full readiness to meet the increased demand of the market consumers by updating its technology and equipment.

The Government of India has a big role to play in ensuring the growth of leather goods exports given the strengths and prospects present.

Taking into account the recent experience and current development trends, an expert assessment of the development prospects for the next five years was carried out. Accordingly, India's exports are expected to reach US$3.6 billion by 2005-06, with a 5% share of world trade expected.

India has been a supplier of leather products to Russia since the days of the Soviet Union. In the late 1980s, about twenty percent of the export of Indian leather and leather products came from the USSR. However, in the time that has passed since the Soviet-Indian partnership, this market has changed a lot. The main exporter of shoes and leather goods to Russia today is China. Chinese exports exist both legally and in the form of smuggling. Moreover, this country is increasing the volume of products imported to Russia, despite the crisis. Thus, in January-June of this year, the number of exports of shoes from China to Russia through the Manzhouli checkpoint reached a record level, amounting to 1.23 million pairs. This is 46.6% more than in the same period last year.

Today, the main markets for Indian leather products are Germany, the UK and Italy. The export of leather and leather goods to Russia is only about 20 million dollars in monetary terms - less than 1% of all leather goods imported by the Russian Federation. And this despite the fact that Russia is in 11th place in the world among importers of leather and leather products. In 2008, this country imported leather goods worth $3.296 billion. The growth rate of imports of these products is also impressive. Before the crisis, they were 68% per year.

However, today India still has 3 interesting directions that will be in demand on the Russian market, the Russian Union of Leather and Shoemakers explains. “Russian trading companies supply our country with ready-made leather from India,” says Nelli Myakunova, president of the RSKO. “This is yuft leather used for the production of special and work shoes. Leather supplied from India is much cheaper than Russian, and 8 times cheaper than leather imported from other countries to Russia". According to the RSKO, in the 1st half of 2010, the import of leather from India amounted to 893 tons, worth only 900 thousand dollars. Not much, but there is potential for growth.

Another direction is the supply of blanks for the production of shoes. Unlike finished products, the supply of blanks is already partially established, and can gradually increase in volume. According to customs statistics, in the first half of 2010, 387,000 pairs of finished shoes worth $900,000 were imported from India to Russia. This is only 0.2% of the volume of footwear imports. In the same period, imports of blanks for the production of shoes amounted to 137.7 tons worth $1.6 million, or 7.8% of the total Russian imports of blanks.

Finally, Russia could cooperate with India in the same format as European manufacturers. The Union of Tanners and Shoemakers notes that low production costs in India are increasingly attracting Russian shoe manufacturers to this country.

Nidamarthy Mallikarjuna Rao, Consultant of the Leather Export Council in Moscow, on the meeting of Indian and Russian leather business representatives, which will be held on November 22.

- Meeting of sellers and buyers in Moscow. What is this, the beginning of the global expansion of Indian leather goods manufacturers to the Russian market?

In Russia, such an exhibition is our first experience. Prior to that, we brought leather manufacturing companies only within the framework of general exhibitions and fairs of Indian goods. Along with beads and spices. This time we are doing an industry exhibition. We sent out invitations to 4,500 Russian companies - these are firms that are directly involved in the sale of leather goods and footwear. We hope they will come. At least just to look. Now any attempt will be positive. Because now our volumes are nowhere lower. It will be possible to talk about some specific plans after the exhibition - who will come, what level of buyers, whether there will be any agreements. For our country, this is a very serious attempt to simply say that we exist. Dispel doubts. Declare the quality of our products.

- Do you have any idea what products of Indian companies will be in demand on the Russian market?

Companies ask what kind of samples to bring. I don't have an answer to this question. On the one hand, people here don't have much money. On the other hand, few places dress so stylishly. And a person would rather buy one thing that is more expensive, but stylish, than a lot of cheap things. Since Indian companies make products for almost all global brands, I am sure that there is experience. If you take shoes, for example, then the Russians will be closer to Italy in terms of demand. What they do for the UK, for example, will not work here. British shoes can be passed on to your children, and in Italy fashion changes every six months. Russians also love style and fashion.

- What are the prospects for Indian manufacturers in Russia? Will there be competition, or is entry to the market still fairly free?

The Soviet Union was India's largest partner in the leather industry. After this partnership collapsed, we lost our main consumer and began to look for other markets. As a result, our companies involuntarily had to improve the quality. Today we can consider that India is quite a powerful country in the export of leather. We deliver goods to the USA, today it is our main partner. It turns out that the break in relations with the USSR benefited our light industry. Previously, we supplied the goods, and we were paid money without question, but now we need to improve the quality. Russia has always worn and will continue to wear leather. We don't have many competitors. Leather processing is a rather dirty industry, there are not many countries in the world that do this. For example, Europe does not make leather at home, they just give orders, and then put their brands on. India produces leather clothing for brands such as Pierre Cardin, Tommy Hilfiger, Versace, DKNY, Hugo Boss. China is harder to deal with. There is state support, enterprises are exempted from taxes. There is no such thing in India. But it seems to me that Indian products have a small psychological advantage over Chinese ones. Our products in Russia are more trusted than what our neighbors produce, Indian manufacturers - as it is believed - make better goods.