“Leather & Tannery Industry in Bangladesh”

Independent University, Bangladesh

Submitted to

Dr. M. Nazmul Amin Majumder Faculty of Strategic Management (MBA 550, Sec-02)

School of Business

Independent University, Bangladesh

Submitted by

Farabi Ahmed ID: 121-121-8

Date of Submission: 15th March, 2015

i

Leather & Tannery Industry in Bangladesh

Produced by: Farabi Ahmed ID: 121-121-8

Submitted to:

DR. M. NAZMUL AMIN MOJUMDAR

ALA Scholar Professor, School of Business Independent University, Bangladesh Spring 2015.

Dated: 31st March, 2015

Preface

The report is regarding the Leather & Tannery industry of Bangladesh and is required for

Strategic Management, the final report for completion of Masters in Business Administration

course MBA 550. This work is guided by our honorary faculty DR. M. NAZMUL AMIN

MOJUMDAR. The focus points includes external analysis, macro environmental factors, and

Porter’s five forces analysis. The report also includes internal analysis, core competencies,

SWOT analysis, corporate strategies, implementation of the strategy and finally corporate

social responsibility. The report highlights the key areas of human resources and fellow

readers should be able to understand the facilities whichever is captured in the report.

Finally, I would like to thank our faculty for giving the opportunity to write and submit the

report.

- Farabi Ahmed

ii

Executive Summary

This report is about the leather and tannery industry of Bangladesh. It contains critical

analysis about the different strategies held by the tannery industry, their process of

tanning, its effect on human, environmental factors. This report includes internal

environment analysis, Michael E. Porter’s five forces industrial analysis, SWOT analysis,

generic competitive strategies, corporate governance and strategic leadership. This report

clearly discusses the macro –economic, technological and other factors of external

environment analysis. It also enhances the implementation strategy, technological

advancement and CSR policy held for the leather and tannery industry of Bangladesh.it is

an upcoming sector in Bangladesh with many hardships but is expected in the future years.

The report critically discusses about different steps needed to be taken for improving

performances in this industry. It also discusses the necessary government steps and

attitudes, which are expected to boost this industry in Bangladesh.

Table of Contents

S.N. Topics Page Number

1 Introduction 1

2 History of leather tanning 1

3 History of leather tanning in Bangladesh 1

4 Objectives 2

5 Limitations 2

6 External analysis 2

7 Macro environment 3

8 Porter’s five forces model 7

9 Internal environment analysis 8

10 Core competencies 9

11 SWOT analysis 10

12 Corporate strategy 12

13 Implementing the strategies 13

14 Recommendations 13

15 Conclusions 14

14 References 14

1

Introduction:

The leather manufacturing process is divided into three sub-processes: preparatory

stages, tanning and crusting. All types of leather products undergoes these processes, and further

sub-processes are needed for surface coating, which may be added to the sequences. It is

generally restricted to batch processing, but in terms of surface coating, the tanning process can

be continuous. The operation flow has to follow the preparatory → tanning → crusting →

surface coating sub-process order without deviation, but some of the sub-processes can be

omitted depending on the variation of the product. (Sharphouse, H. John). Hides and skins are

sometimes preserved by drying, salting, or chilling, so that raw hides and skins will reach leather

tanneries in an acceptable condition. The use of environmentally persistent toxics for

preservation of raw hides and skins is to be avoided. In the tanning process, animal hides and

skins are treated to remove hair and non-structured proteins and fats, leaving an essentially pure

collagen matrix. The hides are then preserved by impregnation with tanning agents. Leather

production usually involves three distinct phases: preparation (in the beam house); tanning (in

the tanning yard); and finishing, including dyeing and surface treatment. A wide range of

processes and chemicals, including chrome salts, is used in the tanning and finishing processes.

History of leather tanning:

Tanning is a process in which the leather-making protein is permanently stabilized against heat,

enzymatic biodegradation, and thermo mechanical stress (Ramasami, T.). Usages of leather

products was introduced Neolithic period and oldest known of footwear is Areni – 1 shoe, which

was produced in Armenia around 3500 BCE. Tanning of hides to manufacture leather was

introduced during the Neolithic, and is documented from Ancient Egypt around 1,300

BCE.[1]

Various substances used were tannin obtained from trees, as well as animal brains,

or fasces. The odor from tanning separated the tanneries from populated areas.

(Maxweescottbags). Leather tanning is without a doubt one of the oldest human activities. In the

beginning, skins obtained from hunting and livestock breeding could be used for clothing or

tents, but they became stiff at low temperatures, while they rotted with heat. It was probably

then that attempts were made to render them more flexible and stronger by rubbing in animal

fats, the first rudimental tanning process is mentioned in Assyrian texts and in Homers Iliad.

(Leather Recource).

History of leather tanning in Bangladesh:

Leather processing is an old manufacturing sub-sector in Bangladesh with a long heritage of over

six decades. Availability of indigenous raw material (hides and skins) facilitated the setting up of

the industry in early 1940s in the then east Bengal. During Pakistan period (1947-1971), the

industry was dominated by non-Bengali migrants from India, who had the knowledge and the

2

know-how of leather processing industry. At that time, leather processing was limited to the

production of wet blue leather (semi-processed tanned leather) and the non-Bengali traders

exported a large part of the produce to West Pakistan for further processing and production of

leather goods. A few small tanning units belonged to Bengali entrepreneurs who processed

leather mainly for the domestic market. Now leather industry occupies only a modest position in

Bangladesh economy way below its true potential. Thus, in 2001-02, value addition in leather

enterprises with 10 or more workers amounted to Tk. 8,737 million ($152 million), which was

about 3 percent of manufacturing value added in that size group of industries. Total employment

in leather enterprises with 10 or more workers was 27,686 or about 1 per cent of manufacturing

employment in that size group. In 2007-08, export of leather and leather products amounted to

$463 million, which was around 3.3 percent of total export earnings in that year. (Ahmed, N.;

Bakht, Z.).

Objectives:

Critical analysis about the impact of leather and tannery industry in Bangladesh.

The development, effects and modernization of this industry in Bangladesh.

The trending analysis and technological advancement of the industry within the border of

Bangladesh.

Limitations:

Some of the key limitations of the report includes unavailability of recent statistical data,

statistical data for leather and tannery industry are very limited, due to lack of data available at

any government surveys – BBS, BEPB, and Labor survey could be presented, due to unavailable

data. The time for presenting the report was not effective, this required longer period to carry out

necessary research and pilot surveys at leather and tannery industries.

External analysis:

External environment of a company includes all the relevant factors and influences anything

whichever is related to the exterior boundaries of the organization. It becomes important and

prolific factors due to its effect in the business and especially for leather and tanning industry.

3

Macro environment:

The macro environment contains 6 – segment analysis. In this report it should include the roles

of macro-environment issues, its learning outcomes and effects for Bangladesh.

Economic Segment:

The foreign currency exchange rate for Bangladesh is relatively stronger compared to its

competitors, like India, Vietnam, etc. It is almost steady from BDT 78 – BDT 80 per US$. And

remains within this ranges for last few decades, making it favorable for many investors to cater

and set up their businesses. The GDP for Bangladesh is relatively stable from 5.8% - 6.0% since

2008, which is significant for investment by various opportunists. Although the interest rates and

the inflation rates are unethical but due to stable currency rates and cheap labor, it plays a

positive role for many investors to cater in this sector.

Political / Legal factors:

The Government of Bangladesh has unidentified the leather sector as one with considerable

growth and investment potential ranked fifth in the export earning sector. Currently Bangladesh

produces and exports quality bovine and ovine, caprine (buffalo and cow; sheep and goat)

leathers that have a good international reputation for fine textured skins. However, the entire

leather sector meets only 0.5% of the world’s leather trade worth US$75 billion. There are about

113 tanneries in Bangladesh that produce 180 million square feet of hides and skins per year. In

addition there are about 30 modern shoe manufacturing plants engaged in the production of high-

quality footwear, with over 2500 smaller footwear manufacturers also present in the sector.

There are around 100 small-to-medium leather goods manufacturers, and a small number of

Technological

Economic

Political / Legal

Socio- Cultural

Demographic

Global

Competitor Environment

Industry Environment

Macro Environment

Analysis

4

niche larger manufacturers. Environmental impact from Tannery Waste The openly discharged

solid and liquid waste from tanneries causing lot of environmental impacts to the society. Human

health impact of pollution depends on the type of diseases. It has been found that the incidence of

illness among the people living at Hazaribagh and adjoining area is 15% higher than the people

living in the neighboring area. More people are suffering from diarrhea, fever, jaundice, cramp,

headache, sinus, lung disease etc. in the tannery based area like Hazaribagh as the effluents are

being discharged openly. Resource use impact is the change in land use, fisheries etc. Socio-

culture dislocation, i.e. loss of homestead land, neighborhood changes in socio-eco system. Loss

of bio-logical resources i.e. bio-diversity or endangered species including effects of flora and

fauna and loss of inhabitants. The effluents released from the tanning industries at Hazaribagh

are huge in quantity. It is unimaginable how much damage the effluents have caused to the

environment over the years. The level of environmental pollution is not acceptable. The

inhabitants of the surrounding areas (approx. 2.0 million) are seriously affected by openly

discharged waste water from the tanneries of Hazaribagh. (Ahmed J.). Henceforth, in the same

the central bank, which controls the monetary policy of Bangladesh has urged all the commercial

private banks to ease their loans for relocating tanneries to Savar from Hazaribagh, in an

environment friendly zone. (Independent Bangladesh).

Global segment:

The global markets for Bangladesh in terms of leather and tanning industry is up roaring, since

the independence of the country in 1971. Lately during 2003, BELA (Bangladesh Environment

Lawyers Association) has requested law suit from the Supreme Court regarding the shifting of

leather tannery industry at Hazaribagh, and locating at a more environment friendly zone. The

lawsuit also mentions about recycling the tons of tannery disposals, (Writ Petition no. 891 of

1994) henceforth, creating a tannery recycling industry at the location of the new leather and

tannery zone, which was later on shifted to Savar area. This has played a positive role, for the

foreign investors to invest in this industry, especially Japan and Italy, to observe the new areas,

and work alongside the existing leather and tannery industry. Whilst Bangladesh is expanding its

leather market in Italy, it holds strong chances of entering the EU (European Union), roughly

shifting the countries trade blocs, giving it a positive role to dominate the leather market in future

years.

Demography:

The population growth rate of Bangladesh is around 1.2% as of 2013 (World Bank). According

to the below it shows that currently Bangladesh has huge working population but likely to

decline in future decades.

5

Figure 1

Table 1

The table – 1, shows the demographic trends for percentage distribution of population by age

group in terms of sex and living. This data is since 1981 until 2011, whilst the last official census

6

has taken place. The population from 10 years old until 80 years old are the recognized

customers for leather products in terms of consuming leather products.

Socio- Culture:

Table 2

Table – 2, shows the different working age population in Bangladesh at city – life and rural –

life. About 1% of this population is part of leather and tannery industry resulting to accumulate

more than US$152 million.

According to Industrial Policy Order 2010 and Bangladesh Labor Act 2006, it states that the

industries must allow workforce diversity and follow a standard work life quality. The

employees must not be biased, harassed nor should face any type of racism or any of kind of

difficulties at workplace. The industry must have attending medical teams, must allow women at

work force, and should follow environmental law of Bangladesh.

Technological advancement:

Chrome-tanned leather tends to be softer and more pliable than vegetable-tanned leather, has

higher thermal stability, is very stable in water, and takes less time to produce than vegetable-

7

tanned leather. Almost all leather made from lighter-weight cattle hides and from the skin of

sheep, lambs, goats, and pigs is chrome tanned. The first steps of the process (soaking, fleshing,

liming/dehairing, deliming, bating, and pickling) and the drying/finishing steps are essentially

the same as in vegetable tanning. However, in chrome tanning, the additional processes of

retanning, dyeing, and fatliquoring are usually performed to produce usable leathers and a

preliminary degreasing step may be necessary when using animal skins, such as sheepskin.

Fatliquoring is the process of introducing oil into the skin before the leather is dried to replace

the natural oils lost in beamhouse and tanyard processes. Fatliquoring is usually performed in a

drum using an oil emulsion at temperatures of about 60E to 66EC (140E to 150EF) for 30 to 40

minutes. After fatliquoring, the leather is wrung, set out, dried, and finished. In commercial

practice, vegetable and chrome tanning methods are widely used. The vegetable tanning method

does not need the prior preparation stage of pickling and therefore the contributions to pollution

load from sulfate salts are lower. Vegetable tannins, however, are known to be hard to

biodegrade (Healy, J.B., Jr., and Young, L.Y.), and hence wastes bearing vegetable tannins

degrade slowly. The development of internet, communications system, product innovations at

leather and industry sector has boosted the sector more than expected.

Porter’s Five Forces Model:

Michael Eugene Porter has developed the idea to aid firs for analyzing the competitive forces in

any industrial environment. He also stated that the stronger is each of these forces, the more

limited is the ability of establishing companies to increase prices and gain higher profits (Porter,

M.E.). The leather and tannery industry in Bangladesh, limited entry for new entrants, due to

huge capital requirements. Moreover, the government of Bangladesh has recently set restrictions

about introducing new leather and tannery industry, making it dearer for the infants. The foreign

buyers hold stronger

powers, as they have the

opportunity to switch

between competitors –

like India, Pakistan, etc.

The suppliers’ power

within the country is

very high, due to

collection of basic raw

hides and skins. Leather

industry itself has huge

substitutes, like – jute,

the golden fiber of

Bangladesh for bags,

textile industry, which

has huge prospects in fashion industry. The rivalry between industries, is very strong, they hold

strong ties with the government. Other countries, expertizing in this industry, are focusing at the

8

research and development including the environment friendly tanning process, which is higher in

other nations compared that of Bangladesh.

Strategic group industrial analysis:

Strategic group industrial analysis shows the industrial positions of the market compared to

different leading industries. According to the diagram above, the RMG (Ready-Made Garments)

industry is the highest export oriented market in the country with lowest cost production. In

terms of BTA (Bangladesh Tanners Association), the cost of production is high but the export

market is still struggling, whereas, the ICT (Information & Computer Technology) market is

cheaper than BTA, and has the lowest market share compared to others. Pharma

(Pharmaceuticals) industries are the most expensive but also holds a giants export market of

around 70% of the global medical demand.

Internal environment analysis:

The internal environment analysis includes the study of the internal factors for the leather and

tannery industry in Bangladesh.

RMG

ICT

BTA

Cost

of

Pro

duct

ion

Export oriented market position High Low

Hig

h

Pharma

9

Competitive Advantages:

The competitive advantages refers to sustainable advantages which a firm obtains internally due

to its market promotions from other industries. One of the most, sophisticated issues faced by the

leather and tannery industries in Bangladesh is the hazardous tanning process. The BTA has

recently, taken steps to support the leather industry, for implementing environment friendly

tanning process, which usually uses vegetable tanning instead of chromium tanning process. The

industries shifting from Hazaribagh to Savar, will implement this current environment friendly

tanning procedure. Although, it may be little more expensive, but various economists and other

diplomats are expecting, that the use of this process will increase the demand in leather global

village, giving Bangladesh leather and tannery industry competitive advantages over others.

Research and Development:

Few of the tanning industry, like – apex, and few more, has already planned to set up its own

research and development teams, to work together for the improvement of tanning industry. The

foreign investors and the Bangladesh Bank has already started working alongside the BTA, to

improve the export market. The recent positive shifts of leather market has given the tanners to

perform with sustainable advantages and improve its growth both internally and externally.

Value Chain analysis:

The leather industry in Bangladesh, already enjoys the low production cost advantage than other

countries, moreover, receives subsidies from many financial organizations. The distribution

system, tends to be cheaper, as they mostly use the local animals and that of the neighboring

countries. Due to government subsidies, it became ease of use for them to cater in this sector

than other sectors.

Core competencies:

Core competencies are the combination of pooled

knowledge and technical capacities that allow a business

to be competitive in the marketplace. Theoretically,

a core competency should allow a company to expand

into new end markets as well as provide a significant

benefit to customers. Some companies have already

started to focus at tanning crocodile skins, snake skins

and other forms of animal skins available for tanning.

They are mostly targeting to gain the premium leather

market, which deals with specialized animal skins, like

Maxwell Scott and some other Italian firms, who cater

the high – end leather customers around the world. Many

10

tanners firms have focused at serving the local market alongside capturing the international

markets. Like – apex industry, bata, have taken steps to cater in the local market, continuing to

gain more profit, and gains higher market shares. Foreign direct investment in this sector along

with the production of tanning chemicals appears to be highly rewarding due to this presence of

basic raw materials for leather goods including shoes, a large pool of low cost, trainable labor,

and a tariff concession facility to major importing countries under Generalized System of

Preferences (GSP) coverage. Thus Bangladesh is an ideal offshore location for leather and

leather products manufacturing with low cost but high quality.

SWOT analysis:

A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate

the strengths, weaknesses, opportunities and threats involved in a project or in a business

venture.

Strengths:

The leather goods producing

enterprises only a few in number (

15-20 units) with product lines

relating to travel goods, suitcases,

briefcases and fashion accessories,

along with belts, wallets, hand

bags, case holders etc. for

overseas export. Export of leather

goods made of Ostrich bird

leather, is an unique collection

amongst many other exciting products made of goatskins, cow calf, Buff-Calf etc.. Articles made

of ostrich bird leather are exported to Australia (ostrich bird leather is imported from South

Africa and Australia). Bangladesh has also entered the field of Leather fashion garments with

items of distinction. The leather goods manufacturing firms use basically finished leather and

lining leather as raw materials and all

are collected from local sources.

About 95% of leather and leather

products of Bangladesh market is

abroad, mostly in the form of

crushed leather, finished leather, leather

garments, and footwear. Most leather

and leather goods go to Germany, Italy,

France, Netherlands, Spain, Russia,

Brazil, Japan, China, Singapore and

Taiwan. Value addition in these exports

averages 85% local and 15% foreign.

About 100 modern tannery units are

11

now in operation in the industry. These are located mostly in the Hazaribagh area of Dhaka city.

In 1998, the sector exported 178 million sq. ft of leather and earned $160 million. The country`s

share in the world leather market is 2%. The export of finished products such as shoes, slippers,

leather jackets, hand gloves, bags, purses, wallets and belts also earn a sizeable amount of leather

products to penetrate new market segments.

Weakness:

The industry is now heavily concentrated at Hazaribagh in Dhaka, with three-quarters of the total

number of registered tanneries located here. Besides, a large number of tanneries at the cottage

level, estimated at over 100, are located at Hazaribagh. Such a concentration is likely to offer a

number of benefits in the form of sharing knowledge, raw materials, spare parts by the investors,

and also helping a rapid development of vertical and horizontal integrations of the industry

centering on the locality. However, Hazaribagh is a wrong place for the concentration of an

industry like leather manufacturing. Firstly, the area was originally developed as a residential

locality and, consequently, its narrow street and limited sewerage facilities are highly inadequate

to meet the needs of a growing Industry like leather manufacturing. Secondly, the unplanned

growth of the industry at Hazaribagh and the limited land area available in the locality has not

made it possible to make any provision for the much needed effluent treatment.

Opportunities:

There is an enormous scope for entrepreneurs and investors. The sector is still catering to the

low-end export market. In order to advance it must move to the next levels. Business friendly

policy: The sector needs business friendly policy by Government to increase the investment.

Needs more skilled workers and managers: Although there are unskilled competitive labor

forces, there is shortage of skilled workforces, managers and entrepreneurs. Limited access to

market - Bangladesh has a limited or small share (~0.56%) in the global business, so there is a

tremendous opportunity to grow to capture more market share around the world. Vietnam can be

a benchmark for Bangladesh who imports 70% of raw materials and exports Shoes and footwear

products: USD 6.549b, Bags & leather handbags: USD 1.289b

Threats:

Limited access to market information: A deeper, more widely held understanding of market trend in terms of quality, fashion, leather product prices, competitors, importers and consumers’ preferences, and anticipated regulations and restrictions needs to be developed in Bangladesh. Poor cooperation between firms/ stakeholders: strong connections between value chain members for a strong sector position, the stakeholders should hold their hands together for mutual benefits. Unfortunately this is still not the case. Low product quality and productivity: Product quality and overall productivity is always a concern for this sector. The product quality means the reliability and aesthetics of the finished products. It stems from the quality of basic raw materials including flayed hide/skin and chemicals, the overall workmanship and the machines/process used in the industry, so the sector still today target

12

mostly the low end product market. Outdated Machineries - Traditional status quo mind set of the owners; they lack information on appropriate machineries, sources, prices etc. They also lack awareness on incentives for product / productivity improvements, are using traditional tanning and manufacturing methods and process.

Corporate strategy:

The footwear sub-sector of Bangladesh earned revenues in excess of USD 335.51 million in

2012-2013. The EU is the biggest destination for footwear exports with a 60% Meeting with

representatives of the footwear sub-sector highlighted an optimistic sentiment about business.

The businesses view their products as price and quality competitive. Footwear manufacturers in

the country rate themselves as being able to respond quickly to buyer inquiries, possessing the

ability to offer competitive prices, quality products, and prompt fulfillment of orders. The growth

of this sector is very encouraging and shows off the underlying potentiality of the sector.

However quite a few supply side weaknesses were also highlighted. Among the most important

are the inability of the tanneries to supply required quantities and quality of leather and the weak

track record of environmental standards, the lack of availability of high quality components and

accessories, the shortage of lasting capacities, the lack of footwear design and development

capacities, the nascent testing and analyses infrastructure, insufficient numbers of enterprises in

the sub-sector, shortage of craftsmen and supervisory-level personnel, and last but not least,

negative buyer perception on enterprise capabilities.

One of the major constraints raised by this sub-sector was the lack of finished leather variations

to match emerging trends in the EU market, due to the lack of innovation and up gradation by

tanners in Bangladesh. Anecdotal evidence gathered in meetings with enterprises highlighted that

some of the highest quality manufacturers are sourcing upwards of 40% of their leather

requirements from overseas and this impacts competitiveness. Another constraint seen was the

lack of new entrepreneurs entering the business, to augment capacity and provide a critical mass

that can attract more buyers to Bangladesh. The shortage of craftsmen and supervisory personnel

is also another constraint to the development of this sub-sector. Bangladesh produces 2 to 3

percent of the world`s leather market. The leather industry in Bangladesh is highly competitive.

Bata shoes, Apex tannery, Legacy footwear, Samata leather and Apex Adelchi footwear are

renowned companies in Dhaka and Chittagong stock market as well. But there are numerous

other small and big manufacturers of leather products. At present there about 15 exports oriented

shoes manufacturing units located mostly in and around Dhaka city. There are more than 2000

shoe making units supplying in the domestic market of Bangladesh.

Implementing the strategies:

13

In 2003, the Government of Bangladesh announced that the tanneries located in Hazaribagh will

be shifted to a purpose-built and modern cluster in Savar, on the banks of the river Dhaleswari,

10 kilometers from Hazaribagh. The key highlight of the Savar cluster was to be the Common

Effluent Treatment Plant (CETP), conforming to international environmental standards. The

Bangladesh Small and Cottage Industries Corporation (BSCIC) is the implementing agency for

the project. It will support 195 tanneries with an employment potential of 100,000 people.

However, relocation and moving to designated modern tannery cite with existing outdated old

machineries from the existing Hazaribagh cite is a big challenge, and a matter of big investments

for the tannery owners. The sooner it takes place the better. The government of Bangladesh

provides a support to the leather industry through various steps, including monitoring the export

market, evaluating the performance of the sector by a permanent parliamentary committee, and

liberal bank credit.

Corporate Social Responsibility: CSR is a management concept whereby companies integrate social and environmental concerns

in their business operations and interactions with their stakeholders.

The research centers throughout the world have undertaken studies on new tanning processes and

have updated old methods in an attempt to find an alternative to conventional chrome tanning

(Gratacos et al., 1993). Till date there is no effective substitution for chrome tanning system.

Chrome tanned leathers possess high stability to wet heat and they have shrinkage temperature

above 100oC. Considerable research has shown that the tanning effects of minerals other than

chromium (Al, Zr, Ti, or Fe) are enhanced when they are used in combination with vegetable

tannins, aldehydes, or other organic molecules (Madhan,et al, 2007). Leather tanned with these

combinations had Ts of near 100oC and physical-mechanical properties adequate for variety of

application. The vegetable–oxazolidine combination tanning has been adopted to make different

kinds of soft leather (Chandrababu et al., 1995). Oxazolidine has been found to be bio-

degradable (Rahman, 1995). This explicates that oxazolidine is highly potent to be a retanning

agent for vegetable tanned leather. Treatment of tannery wastewaters is always required. Some

streams, such as soaking liquor (which has high salinity), sulfide-rich lime liquor, and chrome

wastewaters should be segregated. Preliminary screening of wastewaters is required because of

the large quantities of solids present. Recovery of hair from the dehairing and liming process

reduces the BOD of the process effluent. Physical-chemical treatment precipitates metals and

removes a large portion of solids, BOD, and COD. Biological treatment is usually required to

reduce the remaining organic loads to acceptable levels.

Recommendations:

The government should cater more with the BTA and needs to invest for the R&D for improving

the leather and tannery industry. BELA can be appointed as a tool to study the environmental

impact and follow green tanning process. The leather industries needs to find more potential

customers and invest further and heavily in the local market. Bangladesh government may

14

impose restriction about selling raw leather to neighboring countries, instead subsidize heavily at

the local tannery industry.

Conclusion:

The BTA has recently declared that they will be able to gain US$5billion from exporting raw

leather within the next four years. (Daily star). Chromium emissions may occur from chromate

reduction, handling of basic chromic sulfate powder, and from the buffing process. No air

emissions of chromium occur during soaking or drying. At plants that purchase chromic sulfate

in powder form, dust containing trivalent chromium may be emitted during storage, handling,

and mixing of the dry chromic sulfate. The buffing operation also releases particulates, which

may contain chromium. Leather tanning facilities, however, have not been viewed as sources of

chromium emissions by the States in which they are located. Currently almost all tanneries uses

chrome tanning process to make good quality leather. In chrome tanning process, the different

chromium salts are used. These chromium salts and its derivatives are very dangerous to human

health and to the environment. This research suggests, replacing the chrome tanning process with

silicate tanning process, so that the dangerous environmental impacts caused by the chromium

compounds can be eliminated. Since the properties of chrome and silicate leathers are almost

same, it is better to use silicate tanning process instead of chrome tanning. This yields the

tanneries and tannery products will be eco-friendly and pollution free tanneries.

15

References:

A

Ahmed, J., 04 May 2014. “Bangladesh Tannery – Environmental Impacts” | Independent

Bangladesh. [Online].

http://www.theindependentbd.com/index.php?option=com_content&view=article&id=213774:ba

gladesh-tannery--environmental-impacts&catid=175:weekend-independent&Itemid=213.

[Accessed 30th

March 2015].

Ahmed, N,; Bakht, Z., June 2010. “Leather Footwear Industry in Dhaka: A Case Study” |

Bangladesh Institute of Development Studies. p. 1; para. 1.

B

BBS, 2013. Bangladesh Bureau of Statistics. Statistical Pocket Book 2013 | “Labor and

Manpower”. Chap: III, pp. 87 - 144.

C

Chandrababu, N.K.; Rathnasamy, V.; Samvelu, N.; and Parthasarathy, K. (1995). Ecofiendly

tanning for the production of garment leather. 39th LERIG , 32,.

D

Daily Star. 08 March 2015. Leather sector aims for US$5bn in exports. [Online]

http://www.thedailystar.net/leather-sector-aims-for-5b-in-exports-54932. [Accessed at: 31 March

2015].

G

Gratacos, E.; Marsal, A. and Fort, M. (1993). Combination tannage with vegetable and

aluminium salts: Glace kid for ladies shoe uppers. J Soc Leather Technol. Chem., 77,167.

H

Healy, J.B., Jr., and Young, L.Y. (1978). Catechol and phenol degradation by a methanogenic

population of bacteria, Appl. Environ. Microbiology (35) , pp. 216–218.

L

16

Leather Resource. 2008. “A story that began a long time ago”. [Online].

http://www.leatherresource.com/history.html. [Accessed 30th

March 2015].

Labor Force Survey, BBS, 2010. Bangladesh Bureau of Statistics. Statistical Pocket Book 2013 |

“Labor and Manpower”. Chap: IV, p.152.

M

Madhan, B.; Aravindhan, R.; Ranjithakumar, N.; Venkiah, V.; Rao, J.R.; and Nair, B.U (2007).

Combination tanning based on Tarra: An attempt to make chrome-free garment leathers. J. Am.

Leather Chemists Assoc., 102, pp.198-204.

Maxwellscottbags. 15 August 2012. “The beginning of leather | Italian leather” [Online].

http://www.maxwellscottbags.com/our-story/. [Accessed 30th

March 2015].

P

Porter, M.E. 2008. “How competitive forces shape the strategy” | Harvard Business Review, Mar

– Apr, pp.137 – 145.

R

Rahman, Mohammed A. (1995). Oxazolidine and hetero hydro oxazine azide surfactants US

patent, 5, 562, 865(LL 544-470, CIID3/28) Chemical Abstract, Vol125, No. 24, Abs. No:

303849

Ramasami, T. (2001). Approach towards a unified theory for tanning: Wilsons dream, J. Am.

Leather Chem. Associations. (96), pp. 290–304.

S

Sharphouse, H.John, 1983. Leather Technician‟s Handbook. (Leather Producer’s Association,

Publishing) ed: 2: p. 37.

T

The Independent Bangladesh. 03 November 2014. “BB announces incentives for tannery

relocation”. [Online].

http://www.theindependentbd.com/index.php?option=com_content&view=article&id=235769:b

b-announces-incentives-for-tannery-relocation&catid=107:business-banking&Itemid=154.

[Accessed 30th

March 2015].

W

17

Writ petition no. 891 of 1994. „Writ Petition no. 894 of 1994 | BELA VS Government of

Bangladesh and Others‟. | In the Supreme Court of Bangladesh High Court Division.

World Bank, Courtesy of Google, Updated on 19 March 2015. Population growth of Bangladesh.

[Online].

https://www.google.com.bd/publicdata/explore?ds=d5bncppjof8f9_&met_y=sp_pop_grow&idi

m=country:BGD:PAK:IND&hl=en&dl=en#!ctype=l&strail=false&bcs=d&nselm=h&met_y=sp_

pop_grow&scale_y=lin&ind_y=false&rdim=region&idim=country:BGD&ifdim=region&hl=en_

US&dl=en&ind=false. [Accessed 31 March 2015].

“However difficult life may seem, there is always something you can do and succeed at. - Stephen Hawking.