Analysing The Leather Industry In India Business Essay

The leather industry is a significant contributor to world economy in terms of its potential to offer occupations, income era and the export benefits. The Indians have generally benefited from the leather industry for many years, rendering it one of the very most prominent industries. The past five generations five years saw the Indian leather industry undergoing through a complete change which includes made it the main foreign exchange earner. The major areas of the leather industry include; the leather process technology, treatment of the effluent, the leather chemicals, planning of leather products and standardization of quality, and value addition to the byproducts. The Indian leather industry loves a good market for leather goods and accessories from the U. S. A, U. K and Germany which are between the world's great economies.

The leather products have a worldwide value which forms a strong trade element for the worthiness string of the leather products. The recycleables that are hides can be purchased from one country, for occasion South America and processed in India while the end products can be bought from USA. Therefore this is a worldwide industry, the leather industry in India production is believed to be 10 million tones which are 6% of the world's total creation, India on its part constitutes 2. 3% of the world total talk about in the leather industry products trade, and this is roughly US $ 68 billion, Italy leads followed by China, USA and Korea respectively.

However, the leather industry is one of the world's most fragmented sectors with several forces at play. It faces serious issues that include; Non option of the recycleables and the rising environmental pressure for the consciousness for the eco-friendly products.

The lack of enough raw materials is major make that undermines the tanning and finishing capacity of the of the Indian leather industry which is estimated to be a total of 1192 million pieces of hides per year, this shows the ability of India to keep up its large leather industry as a reference, the only disadvantage is the lack of availability of recycleables and the rising high rate of the population expansion (Leather. Indiabizclub, 2010). This craze of the causes if not checked for balance in the next 3 years will have a negative impact in the Indian market. To avoid the incapacitation of the Indian leather industry, the Indian Authorities has think of a technique to augment the local option of the raw materials, it offers allowed for the duty free importation of the hides and skins at the globally level.

In order to counter the makes because of the rising demands for the eco-friendly product inputs the Indian Administration through the regulatory businesses has set the required criteria for leather products. It has also initiated the policies that streamline the leather industry by instilling a culture of value addition to the industrial by products and routine treatment of the professional effluents. These expectations means that the Indian leather manufacturers produce the most green products that will gain the advantage of the leather products market platform especially in the Europe which stresses on environmentally friendly soundness of the merchandise through the increased role in the environmental regulations. According to the European Market rules the manufacturers should view the creation operations and products in conditions of the effects to the environment. (Jones & George, 2004). Therefore, countering of the makes due to the environmental understanding creates reasonable environmental creation which consequently starts the marketing opportunities specifically for leather products.

Task Environment

The Raw Material Supply

The Indian leather industry has a sizable raw material foundation, India as a country has been placed amongst the main countries in terms of livestock keeping and therefore the raw materials for the leather industry. The four types of hides from the livestock types like the cattle, buffaloes, goats, and sheep's have high value in the leather industry. The specialty that has been accorded to the goat, calf and the sheep skins from India allows them to command word a good market worldwide. The Indian Federal government has put in place strategies to meet the demand for the leather industry recycleables, by allowing the duty free importation of the recycleables from any part of the world. These strategies facilitates and attracts international manufacturers that intends to shift the production bases from high production cost locations to low foundation such as those motivated in India.

Forces at play

There are several makes at play, the Indian leather industry has revolutionized very dramatic transformation since the administration initiated its policies in the later 20th century, this empowered the Indian leather industry to grow from a mere exporter of the leather raw materials in the mid 20th century to manufacturer's of completed products which have high value addition. Because of the work of globalization of the Indian overall economy under the support of economic liberalization and initiation of practical economic plans, the Indian leather industry is defined to achieve the highest growth record next 3 years. This can permit the Indian current economic climate to achieve the greatest share in the global trade.

Other evident financial causes emanating from the Indian leather industry include; its role as a forex earner and its own tremendous employment prospect of the next three years. The Indian leather industry offers work to over 2 million Indians both direct and indirect, with almost 50% of the workforce comprising of the skilled and semi-skilled personnel.

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