‘European and UK leather industry plans to shift to India’

The Indian leather industry should grab the opportunity as leather manufacturers from Europe and the United Kingdom are planning to shift their production units to India, said Asad Iraqi, general secretary, Leather Industries Welfare Association.

He claimed that the Indian leather industry should make every effort to attract European manufacturers as their investment would generate employment. Recently, a Korean company had entered into an agreement with a Chennai firm and assured to invest around Rs.350 crore in India, he added.

Talking to media, Iraqi said, “Local leather entrepreneurs are ready to welcome European manufacturers as their involvement will generate employment for thousands of people”.

“The infrastructure needs upgrading. At present, the tannery industry is interested in setting up a proposed 20 mld effluent treatment plant, and the effluent discharge problem will be solved once the ETP is constructed”, Iraqi further said. Kanpur’s tannery industry, he said, had got orders of Rs 300 crore from Italy, Vietnam, New Zealand and Australia but due to a 15 days roster, the exporters faced problems in fulfilling the orders. Due to lockdown, raw material worth Rs 250 crores was about to be destroyed.

He said the raw material had been tanned after the state government allowed the tanneries to operate but now for processing one month time was required.

Import and export specialist Zafar Firoz said that the leather industry had suffered losses because orders were cancelled by the American, German and French manufacturers.