The leather industry in India is one of the most important sectors of the economy, providing employment to millions of people, mostly from the weaker sections of the society. The leather industry in India has a huge potential for growth, as it has access to abundant raw materials, a skilled workforce, and a large market.
Types of leather goods produced in India
The leather industry in India showcases quality, design, and artisanship. Leather manufacturers produce a wide range of goods, like clothing, accessories, upholstery, and furniture.
The major production centres for leather products are in the north, south, and central regions of India.
Government initiatives for the leather industry in India
The leather industry in India gets significant support from the government, in the form of various policies and schemes to promote its growth and competitiveness. Some of these are:
- The Indian Footwear, Leather and Accessories Development Programme (IFLADP). It aims to enhance the productivity, quality, and innovation of the leather sector. This also provides infrastructure, skill development, and environmental compliance support.
- The special package for employment generation in the leather and footwear sector. It provides incentives for employment generation, tax benefits, duty drawbacks, and interest subvention.
- The Leather Technology, Innovation and Environmental Issues (LTIEI) scheme. It provides financial assistance for research and development, technology upgradation, and environmental management.
- The Scheme for Integrated Development of Leather Sector (SIDLS). It helps with the modernisation and capacity enhancement of leather units. It also helps set up of new units and common facility centres.
Strengths of the Indian leather industry
The leather industry benefits from a well-established infrastructure, a skilled workforce, and a strong global presence, making it a key player in the market.
- Own raw material sources, approximately 3 billion square feet of leather are produced annually
- Certain varieties of goat, calf, and sheep skins hold a premium position in the market
- A strong and eco-sustainable tanning base supports environmentally friendly production
- Modernised manufacturing units enhance efficiency and product quality
- Availability of trained and skilled manpower at competitive wage levels
- World-class institutional support for design, product development, human resource development, and research and development
- The presence of support industries, including leather chemicals and finishing auxiliaries, strengthens the supply chain
- Established presence in major global markets, with extensive experience in European trade
- Its strategic location in the Asian landmass facilitates international trade and market access.
How to start leather business in India
- Market research: Conduct thorough market research to determine the demand for leather products and identify the target audience.
- Business plan: Create a detailed business plan that outlines the business model, product offerings, marketing strategy, and financial projections.
- Legal formalities: Register the business and obtain necessary licenses and permits required to operate a leather business in India.
- Raw material procurement: Identify reliable sources of high-quality raw materials such as leather, dyes, and chemicals needed for the manufacturing process.
- Infrastructure: Establish a workshop or manufacturing unit equipped with machinery suitable for manufacturing leather products.
- Skilled labour: Hire experienced and skilled artisans for various processes involved in the leather manufacturing process.
- Product range: Offer a wide range of products such as bags, footwear, accessories, and garments to cater to diverse consumer demands.
- Branding and marketing: Develop a strong branding strategy, create an online presence, and leverage social media platforms to reach a wider audience.
- E-commerce: Explore the possibility of setting up an online store or partnering with e-commerce platforms to reach a wider audience and expand the customer base.
Starting a leather business in India can be a challenging yet rewarding venture. A sound understanding of the market, along with a well-planned strategy along the above mentioned points, can help you establish a successful leather business in India.
Business Loan for leather industry providers in India
The Indian leather industry faces a lack of adequate and timely finance for its various needs. They may include working capital, expansion, machinery purchase, digitisation, and renovation.
Bajaj Finserv offers a quick and easy business loan for leather industry providers in India, with the following features and benefits:
- A loan amount of up to Rs. 80 lakh: Use it for any business purpose, without any collateral or security.
- A flexible tenure of up to 8 years: Choose your tenure as per the repayment capacity and cash flow of your business.
- A fast and hassle-free online application process: Apply with minimal documentation and get approval within 48 hours*.
- A Flexi Loan facility: Withdraw funds as per your requirement, and pay interest only on the amount utilised.
- A convenient online loan management system: Check your account statement and manage EMIs easily.
- A transparent and competitive interest rate: You need not pay any hidden charges or fees.
The leather industry in India is a vital and vibrant sector of the economy, which has a huge potential for growth and development. While the government has set up several initiatives to support this industry, those looking for fast, high-value finance can choose our business loan and get up to Rs. 80 lakh.
