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The post-liberalization era has opened up a plethora of opportunities for the Indian leather industry. With global players looking for new sourcing options, India stands to gain a bigger share of the global market. India has a 2.62% share. The major leather products and exports from India are hides and skins such as cow and bull calf, sheep nappa, goat skin, kid leather, wet blue, etc. Footwear and footwear components like shoes, shoe uppers, soles etc., leather garments, leather gloves, leather saddlery goods, leather travel bags and totes, leather purses, wallets, briefcases etc.in the global leather trade during 2006, with the exclusion of nonleather footwear; the share is slightly higher at 3.41%. The composition of exports has also been changing, with more and more value added products being exported. India has distinct advantages in the leather industry in terms of availability of raw materials. India has the largest livestock population in the world. This has enabled India to become a significant player in the world leather market, with exports growing at a CAGR of 11.9 % over the time period 2003-04 to 2007-08. The composition of export of leather and leather products from India has undergone a structural change during the last three decades, from merely an exporter of raw material in the sixties to that of value added products in the nineties. The value added finished products presently constitute around 80% of the total export from the industry, which was mere 7% in 1956-57. With the around 50% of the total leather market in India is constituted by the footwear industry and the remaining is attributed to other leather products. The domestic industry is highly fragmented and around 70-75% of the industry capacity is accounted by large numbers of small scale manufacturers. In the organized segment Bata India is the largest player with a market share of almost 35%.
The Council for Leather Exports has formed a Section 25 company in the name of Leather Sector Skill Council.The purpose of the Leather Sector Skill Council (Leather SSC) is to play an effective role as the representative national agency facilitating the development of skills solutions for industry players in acquiring and developing the requisite skilled manpower needed to sustain the envisioned growth of the leather and leather goods industry and setting a foundation for the country to emerge as a global leader. The Leather SSC will co-ordinate with industry, education & training providers and government in ensuring capacity building for availability of trained and skilled manpower across industry segments and organization levels.

Objective

  • Set up effective Labour Market Intelligence systems to assist in planning and delivery of training and skilled manpower.
  • Facilitate capacity building for skills training, attract learners to the sector and enable them to choose appropriate skills programs through counselling.
  • Develop a catalogue of sector occupations and skills/ occupational standards related to them for the Leather, Leather Goods and Footwear industry, the sector skill development needs and skill development roadmap for the sector.
  • Assure quality of skills delivery through appropriate systems of accreditation / affiliation of training providers as well as examination/ certification processes.
  • Set up Centres of Excellence in key locations and Train the Trainer programs to promote skills standards within the sector

Scope

  • The focus on Make in India program will take leather factories to towns and villages with suitable infrastructure being created in those places. This will create a huge number of jobs in the leather sector.
  • With different initiatives from the state governments, there is a challenge for the sector skill council and the training partners to meet the expectations through their outreach.
  • This will also solve issues like distressed migration and provide benefits of being with the family and community, resulting in a sustainable model, leading to efficiency, productivity and quality.