Scribd
Upload
269 views18 pages

Leather Industry Presentation

The leather industry in Pakistan is significant, contributing about 7% to exports and 5% to GDP. Pakistan is the 4th largest producer of leather garments and 2nd largest producer of leather gloves globally. The industry employs over 500,000 people directly and indirectly. However, the industry faces several issues that hamper its growth, including environmental pollution from untreated effluents, lack of supporting industries, high production costs due to issues like electricity load shedding, and smuggling of animals out of the country. Addressing these challenges will help Pakistan's leather industry become more competitive and sustainable.

Uploaded by

Sara Pervez
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
269 views18 pages

Leather Industry Presentation

The leather industry in Pakistan is significant, contributing about 7% to exports and 5% to GDP. Pakistan is the 4th largest producer of leather garments and 2nd largest producer of leather gloves globally. The industry employs over 500,000 people directly and indirectly. However, the industry faces several issues that hamper its growth, including environmental pollution from untreated effluents, lack of supporting industries, high production costs due to issues like electricity load shedding, and smuggling of animals out of the country. Addressing these challenges will help Pakistan's leather industry become more competitive and sustainable.

Uploaded by

Sara Pervez
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 18

Leather Industry

Stats for ratio of tanned skin to the value added products

Significance
80 billion trade globally Second largest export 700 million in FY10- less than 1% of the global leather market Contributes about 7% of export earning Share in GDP is 5% Providing employment to 500,000 people directly and indirectly

In 2010, showed increase in exports-11% Pakistan stands at number four in leather garments production second in leather gloves 36th in leather footwear

Subsectors
1. 2. 3. 4. 5. 6. Tanning Leather Footwear leather Garments leather Gloves leather Shoe Uppers and Leather Goods

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.

Leather exports
Italy, Spain, Portugal, South Korea, Germany, France, UK, USA and the United Arab Emirates (UAE).

Leather manufacturing
Vegetable Chrome

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

More than 300 slaughter houses In Karachi, a modern Yugoslavian-built, largescale abattoir with a line-slaughter system was established 25 years ago.

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

Strengths of India s leather sector


world s largest technically trained manpower in leather craft is accessible at the world s 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

Firm Strategy,Structure and rivalry


500 tanneries operating independently Karachi(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

Cost of production
Increasing cost of electricity Gas load shedding hinders tanning process Animals smuggled to Afghanistan Price of hides risen within 1 year Low worker productivity and strikes

Pricing
The price is in accordance with intl standards Pakistan replicates foreign market demand and sets price Uncertainity and untimely delivery,and unhygenic products causes many countries to buy from India instead

Marketing Strategy
Carry in house marketing surveys Trade fairs in other markets Maintaining market position Environmental consequences of tanning process Monthly bills to treatment plants

CSR

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 (cluster competition)

Related and Supporting Industry

Chemical industry Fashion Industry Soaps Feed Industry Banking and Finance Industry Livestock Industry Lack of training institutions

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

You might also like