leather industry presentation

8/6/2019 Leather Industry Presentation

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Leather Industry


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Stats for ratio of tanned skin to the value

added products


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Significance

80 billion trade globally

Second largest export

700 million in FY10- less than 1% of the globalleather market

Contributes about 7% of export earning

Share in GDP is 5%

Providing employment to 500,000 people

directly and indirectly


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In 2010, showed increase in exports-11%

Pakistan stands at number four in leather

garments production second in leather gloves

36th in leather footwear


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Subsectors

1. Tanning

2. Leather Footwear

3. leather Garments4. leather Gloves

5. leather Shoe Uppers

6. and Leather Goods


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Major leather products

Belts, Gloves, Garments, Footwear ,Straps,

Bags, Ladies Bags, wallets, Briefcases, Watch

stripes, Key chains, Tea mats, Pen holders,

Musical instruments, Sports Goods,

jackets, etc.


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Leather exports

Italy, Spain, Portugal, South Korea, Germany,

France, UK, USA and the United Arab Emirates

(UAE).


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Leather manufacturing

Vegetable

Chrome


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History

1950s- tanneries were setup at karachi and

lahore

During 60s and 70s, at Hyderabad, Kasur,

Sialkot, Multan, Sahiwal and Gujranwala.

The Sialkot city of Pakistan has Leading leather

goods manufacturers, exporters and importers


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More than 300 slaughter houses

In Karachi, a modern Yugoslavian-built, large-

scale abattoir with a line-slaughter system wasestablished 25 years ago.


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Indian economy

2702 slaughter houses

Third largest exporter in the world

Whereas pakistan stands 15th in the world

The export increased from Rs. 290 mn in

1956-57 and from Rs. 30760 mn in 1991-92 to

Rs. 140007.33 mn in 2007-08. Structural change


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Strengths of Indias leather sector

worlds largest technically trained manpower in leather craft

is accessible at the worlds most competitive costs.

largest livestock holding country 21% large animals and 11%

small animals

Promising technology inflow and Foreign Direct Investment

Latest tannery machines available

Industrial policy , 10 th and 11th plan

Many sectors are dereserved


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Firm Strategy,Structure and rivalry

500 tanneries operating independentlyKarachi(150)

Lahore(275)

Sialkot(250)

The leather industry is divided into 3 enterprises precisely small,

medium and large enterprises

The management structure is mostly centralized

It is found in few areas of Punjab and Sindh

In Korangi there are 150 tanneries


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Marketing Strategy

Carry in house marketing surveys

Trade fairs in other markets

Maintaining market position

CSR

Environmental consequences of tanning process

Monthly bills to treatment plants


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Rivalry

International rival countries are China,Bangladesh and India

respectively(45%,17%,8% )

Domestic rivalry is not enough to spur efficiency

There are a lot of unorganized price wars (clustercompetition)


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Related and Supporting Industry

Chemical industry

Fashion Industry

Soaps

Feed Industry

Banking and Finance Industry

Livestock Industry

Lack of training institutions


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Issues

Smuggling of animals

Untreated effluents /environmental concern

Petrol Bomb

Load shedding of electricity

No supporting industry for machines

Less finances for small enterprises Premium quality finished leather is not available

Natural disaster and floods(200,000 head of livestock killed)

Mad cow disease

Non commercialized livestock sector

Continuous fluctuations in tax rates,gas rates

NILT is not functional and Gujranwala has 1 institute Underdeveloped local demand

Unholy alliance between the tanneries and poultry farmers

Health of tannery workers

leather industry presentation

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