Analysis of Export Performance of Leather and Leather Products

1.0 Introduction:

As per officially notified DGCI& S monthly export data, the export of leather and leather products for the financial year April-March 2010-11 touched US$ 3844.86 million as against the performance of US$ 3404.57 million in the corresponding period of last year, recording a positive growth of 12.93%. In rupee terms, the export touched Rs.175181.91 million in April-March 2010-11 as against the previous year’s performance of Rs.161524.00 million registering a positive growth of 8.46%.

A Statement showing the Product-wise Export performance during April-March 2010-11 vis-à-vis April-March 2009-10 is given below:

 (Value in Million Rs)
CATEGORYAPR–MARAPR–MAR% VARIATION
FINISHED LEATHER29791.79 36947.6224.02%
LEATHER FOOTWEAR59543.36 66540.76 11.75%
FOOTWEAR COMPONENTS9921.57 9797.39 -1.25%
LEATHER GARMENTS20335.1018262.82-10.19%
LEATHER GOODS35915.51 37129.633.38%
SADDLERY AND HARNESS3956.423925.11 -0.79%
NON-LEATHER FOOTWEAR 2060.252578.5825.16%
TOTAL161524.00 175181.918.46%
Source : DGCI &S

  Value in Million US$)
CATEGORYAPR–MARAPR–MAR % VARIATION
2009-102010-11
FINISHED LEATHER627.95 810.9229.14%
LEATHER FOOTWEAR1255.04 1460.4216.36%
FOOTWEAR COMPONENTS209.12 215.03 2.82%
LEATHER GARMENTS428.62400.83 -6.48%
LEATHER GOODS757.02 814.91 7.65%
SADDLERY AND HARNESS83.39 86.15 3.30%
NON-LEATHER FOOTWEAR43.43 56.59 30.32%
TOTAL3404.57 3844.86 12.93%
Source : DGCI &S

1.1 Major Highlights:

In Rupee terms, Export of finished leather, leather footwear, leather goods and non-leather footwear have shown positive growth whereas declining trend is seen in export of footwear components, leather garments and saddlery & harness.

In Dollar terms, export of finished leather, leather footwear, footwear components, leather goods, saddlery & harness and non-leather footwear have shown positive growth whereas export of leather garments had shown a marginal declining trend.

2.0 Country-wise analysis

The major markets for Indian leather products are Germany with a share of 14.34%, UK 12.80%, Italy 11.52%, USA 8.72%, Hong Kong 8.11%, France 7.07%, Spain 6.31%, Netherlands 3.98%, Belgium 2.02%, U.A.E.1.92%, Australia 1.30%
These 11 countries together accounts for nearly 78.09% of India’s total leather products export.
Export of leather & leather products to Germany, USA, UK, Italy, France, Hong Kong, Spain, Netherlands, Russia, New Zealand, Canada, South Africa, UAE and Japan have shown positive growth during April-March 2010-11.
Export of leather & leather products to Australia, Greece, Switzerland, Portugal, and Ireland have shown a decline in exports during the above referred period.
Trend in India’s Export of Leather & Leather Products to difference countries during April-March 2010-11 vis-à-vis April-March 2009-10:

  Value in Million US$)
COUNTRY APR-MAR% change
2009-102010-11
GERMANY491.28 551.32 12.22%
U.S.A.296.37335.1113.07%
U.K.456.59492.32 7.83%
ITALY398.56 442.75 11.09%
FRANCE255.29271.936.52%
HONG KONG251.53311.8123.96%
SPAIN219.13 242.7310.77%
RUSSIA6.68 18.35 174.70%
NETHERLANDS137.10152.9411.55%
AUSTRALIA53.92 50.08 -7.12%
NEWZEALAND4.29 5.7934.92%
DENMARK55.7356.44 1.27%
GREECE12.77 9.85 -22.88%
CANADA27.66 28.11 1.60%
SWITZERLAND27.10 23.00 -15.13%
SWEDEN36.0738.20 5.90%
S. AFRICA24.60 30.92 25.70%
AUSTRIA28.01 26.79 -4.33%
BELGIUM65.3977.80 18.98%
JAPAN17.19 20.58 19.74%
PORTUGAL39.39 37.51 -4.77%
CHINA48.58 72.68 49.62%
IRELAND5.79 5.34 -7.76%
U.A.E.69.06 73.68 6.69%
INDONESIA10.0819.11 89.64%
KOREA REP.29.04 29.03 -0.05%
FINLAND9.96 14.29 43.50%
SAUDI ARABIA 21.01 21.99 4.69%
OTHERS306.42 384.41 25.45%
TOTAL3404.57 3844.8612.93%
Source : DGCI&S

3.0 Port-wise export performance

As per the Port-wise / Region-wise compilation for the period April-March 2010-11, export of leather & leather products from Southern Region, Western, Eastern and Central Regions have shown positive export trends. Export from Northern Region has shown a decline of 4.31%.

 (Value in Million US$)  
RegionAPR-MAR
2009-10
Share in
Total Export
APR-MAR
2010-11
Share in
Total Export
% Variation
Southern1355.55 39.82%1494.52 38.87%10.25%
Western779.41 22.89%965.46 25.11% 23.87%
Eastern410.1912.05% 463.5912.06% 13.02%
Northern444.2113.05% 425.09 11.06%-4.31%
Central104.78 3.08%113.97 2.96%8.77%
Others310.429.12%382.249.94%23.14%
Total3404.57 100.00% 3844.86100.00% 12.93%

Note: This is purely based on port-wise compilation and does not reflect the accurate regional performance:
Source: DGCI& S

4.0 Conclusion:

India’s export of leather & leather products during the financial year April-March 2010-11 touched US$ 3844.86 million as against US$ 3404.57 million in the corresponding period last year, recording a positive trend of 12.93%.
Export of different categories of Footwear alone holds a major share of 45.05% in India’s total leather products exports, with an export value of US$ 1732.04 mn.
As against the export target set for 2010-11 at US$ 3750 mn, the actual export during 2010-11 was US$ 3844.86 mn, recording an achievement of 102.53%.