Project report for Zug grain leather

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Introduction

The Leather industry in India is an employment-focused industry, providing jobs to about 4.42 Mn people. India is the 2nd largest producer of footwear, 2nd largest exporter of Leather Garments, the 5th largest exporter of Leather Goods. In India, the most common leathers come from cattle, sheep, goats, equine animals, buffalo, pigs and hogs, and aquatic animals such as seals and alligators. Leather can be used to make a variety of items, including clothing, footwear, handbags, furniture, tools and sports equipment, and lasts for decades. Leather making has been practiced for more than 7,000 years and the leading producers of leather today are China and India. Tamil Nadu is the largest leather producing state in India. It accounts for 40 per cent of the country's leather production. Chennai, Ambur, Ranipet, Vaniyambadi, Vellore, Trichy, Dindigul and Erode are major leather producing centres in Tamil Nadu. Zug grain leather is mainly used for manufacturing various types of Safety Shoes and Boots. As the Zug grain leather is used for making the upper for safety shoes & boots, so this type of leather should have good tensile strength and proper resistance to heat and chemical. Leather is a strong, flexible and durable material obtained from the tanning, or chemical treatment, of animal skins and hides to prevent decay.

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Market potential & Strategy

The global leather goods market size was valued at INR 293,700 Crores in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2021 to 2028. The market is mainly driven by rising consumer disposable income, improved living standards, changing fashion trends, and growing domestic and international tourism. The rising demand for comfortable, trendy, and fancy leather apparel, footwear, and accessories, along with growing brand awareness, is expected to have a positive impact on the market. Attractive and luxurious leather products are often viewed as a style statement and status symbol. The rising demand for contemporary designs offered by prominent international brands, such as Giorgio Armani, Burberry, Prada, and Dolce & Gabbana, is driving the demand for various leather goods, including apparel, footwear, and accessories.

India is well-equipped to have the comparative advantage in the production of leather and leather goods. The Indian leather industry is the 8th largest foreign exchange earner for the country. Handbags, footwear and leather garments have the largest export growth potential in the leather sector, according to a study undertaken by the Export-Import Bank of India. Tamil Nadu is one of the largest centers of Indian leather industry. The country is among the top four producers of finished leather, others being Italy, Korea and China. The large markets for Indian leather products include Germany, USA, Italy, UK, Hong Kong and France. Towards strengthening the leather sector, the Government is setting up an International Leather Complex in Andhra Pradesh, a Footwear Park in Chennai, a Leather Goods Park in Kolkata and Footwear Components Parks in Agra and Chennai. There is good domestic and export potential for leather products. New entrepreneurs can well venture into this sector.

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