35$garment cl edata

35$ Leather Garment : An 35$ Leather Garment : An Opportunity Area in Export tradeOpportunity Area in Export trade

B. ChandrasekaranB. Chandrasekaran

CLAD, CLRICLAD, CLRI

Indian Leather Garment Industry: Indian Leather Garment Industry: Current ScenarioCurrent Scenario

In the global import-export trade on leather garments, In the global import-export trade on leather garments, India's share has varied in the range of 8-10.5%India's share has varied in the range of 8-10.5%

India is the Second largest producer of leather garments India is the Second largest producer of leather garments with a production of about 10 million pieces per year with a production of about 10 million pieces per year

Other major players in leather garments sector are China Other major players in leather garments sector are China 42.36% , Italy 8.96%, Turkey 5.73%, Germany 3.80% , 42.36% , Italy 8.96%, Turkey 5.73%, Germany 3.80% , France 2.60%, Korea 2.28% etc France 2.60%, Korea 2.28% etc

Leather garment export from India during April 2002-Leather garment export from India during April 2002-January 2003 is estimated at US$ 225 million January 2003 is estimated at US$ 225 million

A fall by 34% in leather garment exports compared to last A fall by 34% in leather garment exports compared to last year has been estimated.year has been estimated.

The fall in garment export is attributed to an economic The fall in garment export is attributed to an economic slowdown in India's markets, US and Europeslowdown in India's markets, US and Europe

The market is currently price driven. Chinese leather The market is currently price driven. Chinese leather industry with high production capacity has captured industry with high production capacity has captured >70% of the low-priced "volume" segment of the market. >70% of the low-priced "volume" segment of the market.

Some Facts and Figures of Global Some Facts and Figures of Global Leather Garment TradeLeather Garment Trade

Estimated at 120 million pieces/ yearEstimated at 120 million pieces/ year Valued at about US $ 4 billion/ yearValued at about US $ 4 billion/ year Generally the value of global trade on leather Generally the value of global trade on leather

garments is either stagnant or decreasinggarments is either stagnant or decreasing Market is seasonal and dominated by economies Market is seasonal and dominated by economies

of US and Europeof US and Europe Value of global leather trade on leather Value of global leather trade on leather

garments is influenced by buoyancy of economy garments is influenced by buoyancy of economy in US and Europe.in US and Europe.

Average price realization from leather garments Average price realization from leather garments in the global trade is estimated at US$35 per in the global trade is estimated at US$35 per garment currently. garment currently.

It is currently buyers market and driven by price It is currently buyers market and driven by price factorsfactors

Indian Garment Industry: Ground Indian Garment Industry: Ground Realities in a competitive environmentRealities in a competitive environment

India exports 9-10 million garment pieces (installed India exports 9-10 million garment pieces (installed capacity = 18 million) in the global trade of about 120 capacity = 18 million) in the global trade of about 120 million piecesmillion pieces

Export realization is about 415 million USD (Rs 1971 Export realization is about 415 million USD (Rs 1971 crores) during 2001-02crores) during 2001-02

Average unit cost of garment in US $ has varied during Average unit cost of garment in US $ has varied during the last three years: 1999-2000(38.5); 2000-01 (38.3); the last three years: 1999-2000(38.5); 2000-01 (38.3); 2001-02 ( 44); 2002-03 (54)2001-02 ( 44); 2002-03 (54)

India is being squeezed out of low priced (38 US$) India is being squeezed out of low priced (38 US$) segments mostly by China. At higher end is doing segments mostly by China. At higher end is doing reasonably well. reasonably well.

There is an increase in the price realization from Indian There is an increase in the price realization from Indian finished leather industry, which has priced itself out of finished leather industry, which has priced itself out of low priced leather garment sector of India.low priced leather garment sector of India.

Indian leather garment manufacturers of higher priced Indian leather garment manufacturers of higher priced segments are able to source internally but not low priced segments are able to source internally but not low priced segments.segments.

China Factor in Leather Garment China Factor in Leather Garment TradeTrade

China is the largest producer of leather garments in the China is the largest producer of leather garments in the world. Their share of US market is about 70% valued at world. Their share of US market is about 70% valued at about US $ 1.5-1.8 billion of the total trade of about US $ about US $ 1.5-1.8 billion of the total trade of about US $ 4-4.5 billion per year.4-4.5 billion per year.

Average price realization from leather garments in US Average price realization from leather garments in US trade is about US $ 32-35 with a simple price strategy of trade is about US $ 32-35 with a simple price strategy of the US with leather plus US $ 8 for the product.the US with leather plus US $ 8 for the product.

China is probably able to produce garment for US$ 25-35 China is probably able to produce garment for US$ 25-35 due to due to

Advantage of large economies of scale with high Advantage of large economies of scale with high system and money productivitysystem and money productivity

Strategic sourcing of sheep skins from New Zealand Strategic sourcing of sheep skins from New Zealand and other countriesand other countries

Higher productivity with about 4-5 per worker in Higher productivity with about 4-5 per worker in comparison to India of 2.2-2.8 resulting in a net cost comparison to India of 2.2-2.8 resulting in a net cost per worker advantage of 30-35%per worker advantage of 30-35%

Admixing of low value pig skins with other leather Admixing of low value pig skins with other leather types. Nearly 80% of the garments from China are types. Nearly 80% of the garments from China are based on low cost materials inclusive of pig skinsbased on low cost materials inclusive of pig skins

India’s Export Performance of Leather India’s Export Performance of Leather GarmentsGarments

76-77 78-79 80-81 82-83 84-85 86-87 88-89 90-91 92-93 94-95 96-97 98-99 00-012002-20030

200

400

600

800

1000

1200

1400

1600

1800

2000

Leather Garments Total Leather Export

Mill

ion

US

D

Year

Projected for 12 months

The trend indicates that a vast section of Indian leather garment industry is unable to compete with other market forces for finished leather from India on cost considerations. The percentage of finished leather export in low price segment is decreasing.

Garment Export During Last 3 YearsGarment Export During Last 3 Years

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FOB

Region Wise India’s Export Region Wise India’s Export Performance During 1999-2002Performance During 1999-2002

RegionRegion 1999-20001999-2000 2000-20012000-2001 2001-20022001-2002

QuantityQuantity FOBFOB QuantityQuantity FOBFOB QuantityQuantity FOBFOB

SouthSouth 1.961.96 86.686.6 2.752.75 119.5119.5 2.412.41 124.9124.9

NorthNorth 4.384.38 167.5167.5 6.506.50 246.4246.4 5.655.65 249.0249.0

EastEast 0.630.63 13.613.6 0.810.81 19.419.4 0.8460.846 20.120.1

CentralCentral 0.090.09 2.042.04 0.0970.097 3.023.02 0.1150.115 3.443.44

WestWest 0.310.31 14.614.6 0.3640.364 16.516.5 0.3700.370 17.417.4

TotalTotal 7.377.37 284284 10.5210.52 404.7404.7 9.399.39 415415

Quantity in Million PiecesFOB in Million US$

Region Wise India’s Export Region Wise India’s Export Performance 2001-02Performance 2001-02

Export Performance USD 415 millionTotal of 383 units

Number of Units

Export Trend in 2001-02: Various Export Trend in 2001-02: Various Garment TypesGarment Types

00.5

11.5

22.5

33.5

44.5

Child W

ear

Men

s Ja

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M- L

ong Coat

M- P

ants

M- W

aist

Coat

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Ladie

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oats

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Other

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Export Trend in 2001-02: Targeting Export Trend in 2001-02: Targeting CountriesCountries

0

0.5

1

1.5

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2.5

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USA Germany Italy UK Spain France

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Export Trend in 2001-02: Market Export Trend in 2001-02: Market segmentations of North/South regions of segmentations of North/South regions of IndiaIndia

North = 249 million US$ with a Peak value of about US$ 85 millionTo USA and Germany US $ 40 million

South = 125 million US$ with peak value of US $32 million to Italy and US $ 29 million to Germany

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Average Price Realization (US $) and Market Average Price Realization (US $) and Market Segmentation of different Regions of India in Segmentation of different Regions of India in

global tradeglobal trade

RegionRegion 1999-001999-00 2000-012000-01 2001-022001-02

NorthNorth 3838 3838 4444

SouthSouth 4444 4343 5252

EastEast 2222 2424 2424

CentralCentral 2323 3131 3030

WestWest 4747 4545 4747

CombinedCombined 38.538.5 38.338.3 4444

Region Wise Export During April-Jan Region Wise Export During April-Jan in 2002 and 2003in 2002 and 2003

Region Apr-Jan Share in Apr-Jan Share in % Variation

2001-02 Total Export 2002-03 Total Export

Southern 133.2 41.23% 102.9 47.17% -22.74%

Western 26.3 8.15% 16.7 7.65% -36.63%

Eastern 20.2 6.25% 11.9 5.44% -41.17%

Northern 119.8 37.09% 71.0 32.55% -40.73%

Central 0.0012 0.00% 0.028 0.01% 2233.33%

Others 23.5 7.28% 15.7 7.18% -33.45%

Total 323.12 100.00% 218.2 100.00% -32.47%

Values in Million US$

India and China: Their Growth paths India and China: Their Growth paths in leatherin leather

In 1983 export of leather sector of India and China was at par at US$ 1.0 and 0.9 bn respectively. In 2002, India has grown to US 2 bn with the support of all. China’s export has grown from US 9.5 to 19 bn in seven years since 1995. Exclusive of non leather shoes, this increase is 4.9 billion since 1995. How has this happened?

We chose different paths for growth. China turned global. We turned inward.China made integrated investments. We spread our efforts thin and wide.

FDIs and Large Scale path China chose. We relied on SME route and brand market products without brands

Key leather market indicators: China Key leather market indicators: China pathpath

The export market for leather garments reached at low The export market for leather garments reached at low priced segments reached US$ 1.8 billionpriced segments reached US$ 1.8 billion

Annual growth rates of exports in leather related Annual growth rates of exports in leather related products registered 12- 27% during the last seven years. products registered 12- 27% during the last seven years. When chips are down in global leather garment trade When chips are down in global leather garment trade during the last five years, China registers 8% growth during the last five years, China registers 8% growth during 2002.during 2002.

China chose the path of high system productivity, non- China chose the path of high system productivity, non- seasonal low value high volume markets, capital seasonal low value high volume markets, capital intensive production systems and integrated cradle to intensive production systems and integrated cradle to grave approaches inclusive low cost but quick deliverygrave approaches inclusive low cost but quick delivery

As a strategy, in China small sizes with non critical As a strategy, in China small sizes with non critical investments were phased out. Mass volume and cost investments were phased out. Mass volume and cost conscious market has formed their area of focus.conscious market has formed their area of focus.

Random path of India in LeatherRandom path of India in Leather

India chose a path of SME and tried to grow in India chose a path of SME and tried to grow in close heels along the grooves of Italy; but close heels along the grooves of Italy; but without the supporting brand image and without the supporting brand image and permitting to be picky rode by others.permitting to be picky rode by others.

In return we gained in technology, strength to In return we gained in technology, strength to shape our own destiny. shape our own destiny.

Our average values of products are high. Value Our average values of products are high. Value realization path of India is superior to China. realization path of India is superior to China.

We gained neither in cost nor in brand We gained neither in cost nor in brand leadership in export trade.leadership in export trade.

We divorced domestic and export segments We divorced domestic and export segments strongly. This meant a random walk into the strongly. This meant a random walk into the WTO world. WTO world.

Strategic positioning of India in Strategic positioning of India in leather garmentleather garment

An Area of NeedAn Area of Need

Planning AheadPlanning Ahead

Planning AheadPlanning Ahead India may not be able to sustain the large India may not be able to sustain the large

production capacity for leather garments on production capacity for leather garments on products with average price of US $ 54 for longproducts with average price of US $ 54 for long

Low price manufacturing sector will graduate into Low price manufacturing sector will graduate into the higher priced segmentsthe higher priced segments

If India is unable to replace higher priced brand If India is unable to replace higher priced brand product segments, the country will be squeezed product segments, the country will be squeezed out. out.

China has declared that by 2015, they will have China has declared that by 2015, they will have three brands of their own. What will India do? three brands of their own. What will India do?

Brand development is expensive business and Brand development is expensive business and would demand a market share rather than profit would demand a market share rather than profit orientation of production systemsorientation of production systems

India needs a mixed model for growth of the sectorIndia needs a mixed model for growth of the sector

Positioning in low priced volume Positioning in low priced volume segmentsegment

An important priority:An important priority:

Developing strength in Developing strength in

US$ 35 garmentUS$ 35 garment

Costing for a Climber Gent’s GarmentCosting for a Climber Gent’s Garment

Cost of Garment Rs 2900 (US$ 58)Share of leather 70%

40 sq.ft. Including wastageRs 50 per sq.ft

Venturing for 35$ GarmentVenturing for 35$ Garment Attempt is made to develop 35$ garment by Attempt is made to develop 35$ garment by

• Using imported sheep nappa leathers Using imported sheep nappa leathers • Admixing leather with wool or juteAdmixing leather with wool or jute• Use of split suedesUse of split suedes• Use of upgraded leathers (transfer foil) Use of upgraded leathers (transfer foil) • Patch work garmentsPatch work garments

Design selection with minimal changes over few Design selection with minimal changes over few seasonsseasons

Market study on the developed garmentsMarket study on the developed garments A range of garments would be made using A range of garments would be made using

above strategy and the designs would be above strategy and the designs would be disseminated to the industrydisseminated to the industry

As an initial attempt, six garments have been As an initial attempt, six garments have been designed and fabricateddesigned and fabricated

35$ Garment (Manfred formal): Leather 35$ Garment (Manfred formal): Leather

35$ Garment (Manfred formal): Leather 35$ Garment (Manfred formal): Leather Sl.No.

Costing Particulars Quantity Unit Price Rs.

Amount Rs.

I Leather: New Zealand Sheep Nappa (Including wastage 4 sq.ft.)

38 sq.ft. 30.00 1140.00

II Accessories

a) Polysatin Lining 2 m 26.00 52.00

b) Wadding 2 m 20.00 40.00

c) Reinforcement (fusing) 1 m 10.00 10.00

d) Shoulder Pad 1 pair 10.00 10.00

e) Thread (100% cotton) 350 m 15.50

f) Adhesive 10.00

g) Zip fastener 24” 2.00 48.00

h) Pocket Zip fastener 6” 1.00 6.00

i) Press/snap button 8 nos 4.00 32.00

j) Lining thread (spun poly) 2 nos 7.00 14.00

Total 1377.50

Overheads (20%) 275.50

Labor charges 60.00

Grand Total 1713.00

35$ Garment (James Dean): Leather + Nylon 35$ Garment (James Dean): Leather + Nylon

35$ Garment (James Dean): Leather + Nylon 35$ Garment (James Dean): Leather + Nylon

Sl.No.


Amount Rs.

I Leather: Upgraded New Zealand Sheep Nappa (Including wastage 5 sq.ft.)

36 sq.ft. 30.00 1080.00

Nylon Rib 3½ sq.ft. 28.60 100.00

II Accessories

a) Cotton drill Lining 2 m 40.00 80.00

b) Shoulder Pad 1 pair 10.00 10.00

c) Cotton thread 20.00

d) Adhesive 10.00

e) Fusing material 1 m 10.00 10.00

f) Metal zip YKK brass 24” 2.00 48.00

g) Pocket nylon zip 6” 1.00 6.00

Total 1364.00


Labor charges 60.00

Grand Total 1696.80

30$ Garment (Manfred Casual): Low grade Sheep 30$ Garment (Manfred Casual): Low grade Sheep Nappa Nappa

30$ Garment (Manfred Casual): Low grade Sheep 30$ Garment (Manfred Casual): Low grade Sheep Nappa Nappa

Sl.No.


Amount Rs.

I Leather: Low grade sheep nappa (Including wastage 4.5 sq.ft.)

36 sq.ft. 25.00 900.00

II Accessories

a) Cotton drill Lining 2 m 40.00 80.00

b) Reinforcement (fusing) 1 m 10.00 10.00

c) Shoulder Pad 1 pair 10.00 10.00

d) Cotton thread 500 m 25.00

e) Adhesive 10.00

f) Metal zip YKK brass 24” 2.00 48.00

g) Pocket zip 6” 1.00 6.00

h) Press Button 7/7 8 Nos. 4.00 32.00

Total 1121.00


Labor charges 60.00

Grand Total 1400.80

25$ Garment (Jackson): Leather + Wool25$ Garment (Jackson): Leather + Wool

25$ Garment (Jackson): Leather + Wool25$ Garment (Jackson): Leather + WoolSl.No.


Amount Rs.

I Leather: New Zealand Sheep Nappa (Including wastage 1½ sq.ft.)

18½ sq.ft. 30.00 555.00

Wool 17 sq.ft. 9.55 162.50

II Accessories


b) Wadding 2 m 20.00 40.00




f) Adhesive 10.00



i) Press/snap button 2 pairs 4.00 8.00

j) Elastic tape 1 m 10.00 10.00

k) Lining thread (spun poly) 2 nos 7.00 14.00

Total 945.00


Labor charges 60.00

Grand Total 1194.00

21$ Garment (Aviatar): Cow split suede + Jute 21$ Garment (Aviatar): Cow split suede + Jute

21$ Garment (Aviatar): Cow split suede + Jute 21$ Garment (Aviatar): Cow split suede + Jute

Sl.No.


Amount Rs.

I Leather: Cow split suede (Including wastage 1 sq.ft.)

20¼ sq.ft. 23.00 465.75

Jute 13 sq.ft. 7.20 93.75

II Accessories


b) Wadding 2 m 20.00 40.00




f) Adhesive 10.00



i) Press/snap button 2 pairs 4.00 8.00

j) Elastic tape 1 m 10.00 10.00

k) Lining thread (spun poly) 2 nos 7.00 14.00

Total 797.00


Labor charges 60.00

Grand Total 1016.00

13$ Garment (Marvel): Cow split suede 13$ Garment (Marvel): Cow split suede

13$ Garment (Marvel): Cow split suede 13$ Garment (Marvel): Cow split suede

Sl.No.


Amount Rs.

I Leather: Cow split suede (Including wastage 2 sq.ft.)

17 sq.ft. 23.00 391.00

II Accessories

a) Satin Lining ¾ m 26.00 39.00

b) Cotton thread 15.00

c) Adhesive 5.00

d) Fusing material ½ m 15.00 7.50

e) Metal zip YKK 20” 2.00 40.00

Total 497.50


Labor charges 20.00

Grand Total 617.00

Positioning in Leather Garment Positioning in Leather Garment Trade: Some Actions neededTrade: Some Actions needed

US$ 35 garment needs to be a part of portfolio of US$ 35 garment needs to be a part of portfolio of India, if we need to remain a large player in the global India, if we need to remain a large player in the global leather garment tradeleather garment trade

Average price of US $ 54 is sustainable at less than 6 Average price of US $ 54 is sustainable at less than 6 million pieces per year capacity. This capacity needs million pieces per year capacity. This capacity needs one plan of modernizationone plan of modernization

Low priced segment needs to innovate in material Low priced segment needs to innovate in material sourcing and material productivity increase strategies sourcing and material productivity increase strategies of providing incentives to workers for material saved of providing incentives to workers for material saved and defects avoided. Focus on material rather than and defects avoided. Focus on material rather than time productivity for low priced segment is a unique time productivity for low priced segment is a unique strategy. strategy.

A mixed model of growth needs to be developed and A mixed model of growth needs to be developed and acted upon. Focus is laid here on low priced segmentsacted upon. Focus is laid here on low priced segments

Suggested Mixed model growth Suggested Mixed model growth path for market segmentationpath for market segmentation

A mix of 65-70% of export trade at a price of A mix of 65-70% of export trade at a price of less than US $ 40 is proposed toless than US $ 40 is proposed to• Increase capacity utilizationIncrease capacity utilization• Gain a larger share of global tradeGain a larger share of global trade• Protect higher priced product market share from Protect higher priced product market share from

competition shake out in a deregulated market competition shake out in a deregulated market environmentenvironment

Committing 30-35% of the installed capacity Committing 30-35% of the installed capacity to medium and high priced segments with a to medium and high priced segments with a strategy tostrategy to• Build brand images for higher realizationBuild brand images for higher realization• JVs for stronger positioning in market JVs for stronger positioning in market

Global Market of garment trade – Global Market of garment trade – Simulation I with 65% below US$ 40 priceSimulation I with 65% below US$ 40 price

% Share on various price range

US$/Garment < 25 25-30 30-35 35-40 40-50 50-60 60-70 >70

India (Calculated) 4.87 2.17 3.64 8.14 30 26.2 13 10

Suggested for full capacity utilization 5 13.9 18.9 18.3 18.3 15.6 7.8 5.6

Global (Assumed) 10 10 15 30 15 10 5 5

Current Production of India ~ 10 million piecesProjected Production of India ~ 18 million pieces (installed capacity)Global Production ~ 120 million pieces

Global Market of garment trade– Global Market of garment trade– Simulation II with 70% below US $ 40Simulation II with 70% below US $ 40


US$/Garment < 25 25-30 30-35 35-40 40-50 50-60 60-70 >70


Suggested for full capacity utilization 5 13.9 18.9 18.3 18.3 15.6 7.8 5.6

Global (Assumed) 10 10 20 30 10 10 5 5


Global Market – Simulation IIIGlobal Market – Simulation III


US$/Garment < 25 25-30 30-35 35-40 40-50 50-60 60-70 >70


Projection 5 13.9 18.9 18.3 18.3 15.6 7.8 5.6

Global (Assumed) 10 10 30 20 10 10 5 5


India’s Vision for Challenging Global India’s Vision for Challenging Global Market – Simulation I, II, IIIMarket – Simulation I, II, III

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Global SII

Global SIII

Strategic Sourcing as Likely Strategic Sourcing as Likely SolutionSolution

Analysis of costing of garments reveal that the Analysis of costing of garments reveal that the cost of the leather alone constitutes about 60-cost of the leather alone constitutes about 60-75% of the total cost75% of the total cost

Sourcing of leathers may be from Iran, Africa, Sourcing of leathers may be from Iran, Africa, New Zealand and other foreign countries apart New Zealand and other foreign countries apart from indigenous marketfrom indigenous market

Studies on various materials, viz. large cow Studies on various materials, viz. large cow nappa, imported ox leathers for material nappa, imported ox leathers for material optimization optimization

Likely Solutions – Contd..Likely Solutions – Contd.. Possible use of low cost upgraded leathers and Possible use of low cost upgraded leathers and

their effect on cutting valuetheir effect on cutting value Combining jute or wool with leatherCombining jute or wool with leather Outsourcing services for different stages of Outsourcing services for different stages of

productionproduction Consortium marketing for large volume ‘low price’ Consortium marketing for large volume ‘low price’

segments to share cost of delivery and selling and segments to share cost of delivery and selling and reduction of overhead costsreduction of overhead costs

Simultaneous Catering to both EU and USA Simultaneous Catering to both EU and USA markets and high and low priced segments at the markets and high and low priced segments at the same time. Not “either or” but “both” is the way same time. Not “either or” but “both” is the way forward.forward.

Technological SolutionsTechnological Solutions

Optimizing for good cutting efficiency in Optimizing for good cutting efficiency in larger area leathers such as cow, splitslarger area leathers such as cow, splits

Effect of upgraded leathers on cutting Effect of upgraded leathers on cutting valuevalue

Productivity improvement for reducing Productivity improvement for reducing the cost of productionthe cost of production

Judicious combination of low grade Judicious combination of low grade leathers in one garmentleathers in one garment

Technological Solutions: MaterialsTechnological Solutions: Materials

Development of garment leathers from Development of garment leathers from goatskins – achieving sheep like goatskins – achieving sheep like material material • Silica based tanning system offers better Silica based tanning system offers better

resultsresults Converting cow and buffalo hides/sides Converting cow and buffalo hides/sides

into softy garment leathersinto softy garment leathers

Technological Solutions: MaterialsTechnological Solutions: Materials

Finishing TechniquesFinishing Techniques• Judicious choice of finishing system – cannot Judicious choice of finishing system – cannot

afford high cost finishing/upgradation afford high cost finishing/upgradation systemssystems

• Rub off, distressed, worn out effectsRub off, distressed, worn out effects• Foil printing/split finishingFoil printing/split finishing

Strategic Material SourcingStrategic Material Sourcing10 Million Pieces in 35$ Garment

Leather alonePrice Range ~25-35 Rs/Sq.ft.

Requirement ~33 million sq.ft.Available ~15 million sq.ft.Indigenous sourcing 50%

Remaining 50%

Sourcing leathers fromforeign countries

Admixing leather with wool or jute

Creating new sources from lower ends/split leathers

35$ = Rs 175075% leather = Rs 13101 garment = 40 sq.ft.1 sq. ft. = Rs 33

Material : DesignMaterial : Design

Material OptimizationDesign elementPanel sizes

Design/ forecast services

CLRI/NID/NIFT

CLRI

Market StudyMarket Study

ITPO

CLRI

CLE

Industry

Desirable ActionsDesirable Actions

Projected production would fetch US$ 47 Projected production would fetch US$ 47 per garmentper garment

The total export will be 0.846 billion US$The total export will be 0.846 billion US$ By improving the high priced segment, it By improving the high priced segment, it

is possible to achieve 1 billion US$ is possible to achieve 1 billion US$ export from leather garment industry export from leather garment industry alonealone

Specific Actions for US $ 35 garmentSpecific Actions for US $ 35 garment

Creation of updatable and protected data base on low Creation of updatable and protected data base on low cost material sources and main global market segmentscost material sources and main global market segments

Unit specific product development on consultancy mode Unit specific product development on consultancy mode by a consortium of CLRI-NIFTby a consortium of CLRI-NIFT

Formation of Garment designers club on a membership Formation of Garment designers club on a membership basis (say Rs 5000 per year)basis (say Rs 5000 per year)

Training of designers and masters on material Training of designers and masters on material optimizationoptimization

In plant training of personnel in material saving: In plant training of personnel in material saving: National and International experienceNational and International experience

Industry sponsored project mode action in CLRI for Industry sponsored project mode action in CLRI for development of garments in the price range of 20-38 US development of garments in the price range of 20-38 US $ at a cost of Rs 20 lakhs for 1000-1200 garments of 10-$ at a cost of Rs 20 lakhs for 1000-1200 garments of 10-15 unique designs 15 unique designs

Sourcing &Indigenous Development ofInexpensive andRight LeathersWay forward for Market positioning and Fuller utilization of capacities

Upgradation of Leather: CostingUpgradation of Leather: Costing

Raw Raw materialmaterial

PricePrice Wet Wet finishingfinishing

PricePrice FinishinFinishingg

PricePrice Total Total cost/sq.fcost/sq.ft.t.

India’s Vision for Challenging Global India’s Vision for Challenging Global Market – Simulation IMarket – Simulation I

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Global

Based on a simulated average price of US $ 37-38 per piece and a trade of 120 million pieces

India’s Vision for Challenging Global India’s Vision for Challenging Global Market – Simulation IIMarket – Simulation II

0

20

40

< 25 25-30 30-35 35-40 40-50 50-60 60-70 >70

US$

Mil

lio

n P

iece

s

India

Projection

Global

India’s Vision for Challenging Global India’s Vision for Challenging Global Market – Simulation IIIMarket – Simulation III

0

20

40

< 25 25-30 30-35 35-40 40-50 50-60 60-70 >70

US$

Mil

lio

n P

iece

s

India

Projection

Global

35$garment cl edata

Business

us trade

leather garment trade

leather garment exports

leather types

leather garments sector

garment pieces

economies of us

chinese leather industry