Leather Granites & Marble Personal Finance

1. MAJOR EXPORTS

The product group includes: ---Shoe Uppers/ footwear of leather anfd semi leather.
Footwear for men, women and children
Sub- compoents of footwear, leggings etc.

2. ITALIAN LEATHER INDUSTRY

Leather and leather products constitute one of the most important segment of India’s
export to Italy. Import of raw leather/ hides, leather garments, footwear and gloves by
iItaly showed an Increase of 4.54% in Jan- October, 1998 as compared to the corresponnding
period of 1997. Italy imported raw leather and hides worth US$ 68.35mn, leather garments
worth Us$ 75.94mn, leather footwear worth US$ 11.00mn and leather gloves worth
US$ 5.59 mn in Jan-October 1998. India’s Share in supply of raw leather/hides, leather
garments, footwear and gloves was 4.06%, 22.68%, 34.27% and 1.11% respectively.
If the Indian companies are able to flollow the environmental norms and quality standards
desired by Italian importers, there could be good possibilities of increased export of these
items to Italy.

In this context the need to attract Italian investment in India for production of shoes
garments etc. Should be reiterated. Italians, wary of entering into joint ventures in India in
this field due to fear of competition from India, are now slowly realising the advantages that
would accrue from sourcing theirsupplies of finished products from India not only for the
Italian market but also for exports to third countries. Of late Italy’s share in high end leather
products in slowly diminishing in view of cheaper products from Taiwan and South Korea.
Incidentally these two countries in the past decade went in for a massive upgradation of
their manufacturing facillities using Italian leather machinery. By availing of cheaper costs
of production, easy availability of raw materials and cheap labour , the Italian leather industry
could regain its competitiveness and its pre-eminent position in the international market. In
order to incrementally increase our exports of value added leather products we would have
to make persistent measures to target Italian investment for manufacturing such products in
India . To obtain export commitment from iItalian companies can be one impediment since
they would also like to target the large Indian market and sell as much they can locally in India.

Main competitors for us in the leather sector are Pakisthan, South Korea Morocco, China,
Thailand, Taiwan and Spain. Our market share in this sector is 6.14 %.

India’s export of leather and leather goods to Italy :

(in Indian Lire, billion and in bracket in US dollers – million)

	1996	1997	1998(Jan – Oct)
Raw leather	125.85(78.59 mn)	133.6 bn(78.59 mn)	104.4 bn(61.41 mn)
Leather garments	138.98 bn(81.75)	148.9 bn (87.59 mn)	117.5 bn ( 69.12 mn)
Leather Gloves	27.38 bn(16.11 mn)	22.18 bn (13.05 mn)	25.7 bn (15.12 mn)
Other leather products	10.71(6.30 mn)	12.70 bn (7.47 mn)	14 bn (8.24 mn)

 

Leather industry is one of the most advanced and prominent in the industrial scene of Italy.
Leather products of Italian origin origin including footwear are well-known all over the world
for quality and exquisite designs. Sdespite being a major manufacturer and exporter of leather quantities , as compared to other countries. Major concentrations of the marche, Toscana,
Veneto and Lombardia.

There are about 8100 units engaged in footwear industry employing about 108350 workers.
About 80% firms employ less than 19 workers and 10% employ from 20 to 49 workers and
the rest more than 50 workers. Thus the Italian footwear industry is in the small and medium
sectors ( by Italian standarsds)

3. ITALIAN IMPORTS

1. Italian import statistics

1. ITALY’S EXPORT MARKET

Italian exports of footwear in 1997 were Lire 1392 bn (US $ 818 mn). Italian exports of footwear
is mainly to germany ( Lit 2158 billion; US$ 1296.4 mn), USA ( Lit 980 billion; US $ 576.4 mn)
France ( Lit 1005 billion; 519.2 mn), UK ( Lit 879 billion; US$ 517.2 mn), Benelux ( lit. 352 billion;
US $ 207.1), Netherlands ( Lit. 432 billion; US$ 254.1).

2. INDIAN EXPORTS TO ITALY

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