Promotion of Leather Sector in Andhra Pradesh
Agenda • Leather Sector • Global • National • Andhra Pradesh • Slaughter Houses • Animals Slaughtered • Promotion of Leather Parks • Global Players in Leather Sector
Global Leather and Leather Products Trade (percentage) Others China 22.0 29.7 Italy Indonesia 15.8 1.1 1.3 1.6 1.7 2.4 Taiwan 3.0 Korea Spain 3.4 10.0 Brazil 4.0 4.0 Germany France Hong Kong India Romania
Global Leather and Leather Products Trade (in US $ Mill) 22386 21464 Exports Imports 15433 10183 9649 7055 6701 5778 3930 3740 3628 2192 2334 2566 3078 2495 2226 China Italy Hong Kong France Germany Spain India USA Belgium
Indian Leather Map • India is the second largest footwear producer. • India is the third largest exporter of saddlery and harness items. • India is the third largest producer of leather goods after China and Italy • India is the fourth largest supplier of leather garments. • Annual Turnover/ Production - Rs 25,000 Crores • Domestic Sales – Rs 14,200 crores • Annual Export - Rs 10,800 Crores (43%) • 2.5 million employment direct and indirect • Largest Livestock holding country - A sources about 10% global requirement of Leather. • One employment for every Rs 35,000 investment • Investment to turnover ratio 1:4
Major production Centre : Tamil Nadu, West Bengal, Uttar Pradesh, Punjab & Andra Pradesh. • Leather exports from India account for around 3% of the total global leather exports • India’s consumption of leather products is expected to grow at around 3-4% per annum in the near future.
Indian Leather Sector Exports – Changing Segments (in percentage) Indian Leather Exports 2000-01 - 2005-06 - US $ 1.9 billion US $ 2.7 billion
A major employment generator and contributor to social and gender equity, where 35% of women forces and workers. • About 2.5 million employees are working and about 2.5 million employees working in-directly. The work force is expected to be increased by an another one million. • Of the 321 million hides and skins processed annually by the industry, 85% is sourced domestically. • A major export revenue earner for the country. • Value addition through technologies and up gradation is highest in the country. • Most plants are clustered within the states of Tamil Nadu, West Bengal, Uttar Pradesh, and Punjab • Tamil Nadu accounts for 70% of leather tanning capacity (225 million processed pieces annually) in India and 38% of leather footwear & components. The exports from Tamil Nadu are about US $ 762 million, which account for 42% of Indian leather exports • TN has over 9000 registered small and medium firms and about 70 large scale firms and about 40 composite firms
Animal Population top States 482.20 (in lakhs) 399.80 204.60 167.04 158.00 0.38 AP UP Mah MP TN Rajasthan • A.P. provides 10% of India’s raw material, yet, tanning and finishing sectors have not grown significantly to completely utilize the available raw materials resources • AP could tan only 5% of the raw materials due to lack of tanning facilities Balance 95% is transported to other States where value addition is undertaken at the cost of A.P. • There are around 30 tanning units in AP with minimal tanning and processing capacity.
Number of Slaughter Houses 25 Adilabad Hyderabad 47 32 Srikakulam Karimnagar 8 Nizamabad 8 26 30 Vizianagaram 7 Warangal 24 Medak Visakhapatnam Khammam 0 5 8 East Godavari Ranga Reddy West Godavari Nalgonda 37 12 24 16 Krishna 12 Guntur Mahabubnagar 9 33 > 25 Nos Between 10 & 25 < 10 Prakasam Kurnool 12 4 Anatapur Nellore Kadapa 5 63 Chittoor Total Number of Slaughter Houses - 447
% Growth of Animals in AP & Animal Slaughtered during 2007-08 (in lakhs)
District-wise animals Slaughtered during 2007-08 108411 Adilabad Hyderabad Srikakulam 301779 188732 50230 Karimnagar Nizamabad 13490 129264 Vizianagaram 629451 Warangal 142671 Medak Visakhapatnam 53297 Khammam 0 130168 364178 Ranga Reddy 75518 West Godavari East Godavari Nalgonda Krishna 97308 330922 39368 Guntur 303103 Mahabubnagar Total Number of animals Slaughtered – 37,34,891 52531 Prakasam 218598 Kurnool 135718 78080 Sheep 20,84,583 Goats 9,63,586 Buffaloes 4,81,184 Cattles 1,16,354 Pigs 89,184 Anatapur Nellore Kadapa 73510 218564 Chittoor > 2.00 lakhs Between 1.00 lakh and 2.00 lakhs < 1.00 lakh
20.85 (in lakhs) 9.64 4.81 1.16 0.89 Sheep Goat Buffaloes Cattle Pigs No of Animals slaughtered in AP during 2007-08 Total Animal slaughtered- 37,34,891
Promotion of LIDCAP Leather Parks/Projects Krishnapatnam International Leather Complex Shifting of Hyderabad Tanneries – Promotion of Kunoor Leather Park Promotion of Mega Leather Park at Rukmapur in Karimnagar Promotion of Mega Leather show room at Autonagar, Vijayawada Promotion of Mega Leather Park at Gangadhara Nellore in Chittoor Promotion of 18 Mini Leather Parks and leasing to the SC entrepreneurs for setting up of leather products HS Darga Leather Products Production & Training Centre Tirupathi Leather Park Development
International Leather Complex • GO issued on 06-06-2008 • Total Land – 412.41 acres • Land in APIIC possession – 104.92 acres • Land to be obtained from APGENCO – 307.57 acres • Project Cost – Rs 194.01 crores • LIDCAP’s GOI grant - Rs 30.00 crores • IIDF - Rs 50.00 crores • SPV - Rs 114.01 crores
Shifting of Hyderabad Tanneries Progress on the Kunoor (Bhongir), Nalgonda Leather Park • Total land – 120 acres • Total 10 units proposed - each in 5 acres • LIDCAP – 5 acres • GOI given Rs 3.00 crores, State Govt. given Rs. 1.75 cr • CETP completed with Rs. 2.28 cr. • Rs 31.5 lakhs spent on approach road through PR Dept. • Units in the Kunoor Leather Park • M/s. Hamsa Impex Ltd. • M/s. South India Prime Tanneries • M/s. Ever Green Leathers • M/s. Hyderabad Leathers • M/s. Roshan best Tanners • 4 units have completed construction, one unit commenced production, one unit completed machinery installation
Progress on the Kunoor (Bhongir), Nalgonda Leather Park M/s Hamsa Impex Ltd. & M/s. South India Prime Tanneries M/s Hamsa Impex Ltd. & M/s. South India Prime Tanneries V vacant M/s. Roshan best Tanners vacant M/s. Hyderabad Leathers vacant CETP vacant LIDCAP
Progress on the Kunoor (Bhongir), Nalgonda Leather Park M/s Hamsa Impex Ltd. Common Effluent Treatment Plant
Leather Parks of LIDCAP Rukmapur (134.31 acres) Kunoor (120 acres) Mandamarri (25 acres) Ghanpur Station (25 acres) Jammikunta (25 acres) Mallemadugu (25 acres) Adilabad Hyderabad Armoor (28.01 acres) Srikakulam Karimnagar Nizamabad Vizianagaram Warangal Medak Duddeda ( 25 acres) Visakhapatnam Vennelavalasa (30 acres) Khammam East Godavari Ranga Reddy West Godavari Nalgonda Dandepally ( 25 acres) Krishna Nuzivedu (20.24 acres) Guntur Mahabubnagar JinKunta ( 25 acres) Prakasam Vijayawada (1 acre) Kurnool Adigppula (3 4.25 acres) Anatapur Nellore Polepally ( 25 acres) Kadapa ILC (412.41 acres) Chittoor Kurnool ( 784 Sq Mts) Tirupathi ( 4.55 acres) HS Darga (43.08 acres) Rachepally ( 42.28 acres) Gangadhara Nellore ( 417.77 acres)
Machinery installed in Leather Parks Ghanpur Station (25 acres) Jammikunta (25 acres) Adilabad Hyderabad Srikakulam Karimnagar Nizamabad Vizianagaram Warangal Medak Duddeda ( 25 acres) Visakhapatnam Vennelavalasa (30 acres) Khammam East Godavari Ranga Reddy West Godavari Nalgonda Dandepally ( 25 acres) Krishna Nuzivedu (20.24 acres) Guntur Mahabubnagar JinKunta ( 25 acres) Prakasam Vijayawada (1 acre) Kurnool Adigppula (3 4.25 acres) Anatapur Nellore Kadapa Rachepally ( 42.28 acres) Chittoor Tirupathi ( 4.55 acres) HS Darga (42 acres)
Promotion of Mega Leather Park at Rukhmapur, Karimnagar (Footwear) 1. Covered in the CM’s Announcement (dated: 11-4-2008) 2. Area of the land 134.31 acres at Rukmapur (V), Choppadandi (M) for establishment of Leather Park 3. CLRI prepared a Project Report for establishment of footwear complex for Rs 98 crores
Promotion of Mega Leather Park at Gangadhara Nellore, Chittoor (Tanning) 1. Area of the land – 431.20 acres DKT land – 235.59 acres DKT alienated land – 14.86 acres Govt. Land – 167.45 acres Patta land – 13.50 acres 2. Location - 9 Kms from Chittoor, 40 Kms from Ranipet, 150 Kms from Chennai, potential for the tanneries. 3. LIDCAP has paid Rs 73 lakhs on 16-9-2006 to District Collector.
Promotion of Mega Leather showroom at Autonagar, Vijayawada • LIDCAP is having its own land of about 4060.43 Sq. Mts in the Autonagar, Industrial Estate Vijayawada on the main road of Benz Cirle to Machilipatnam road. • Only 403 Sq. Mts of land is being used for shoes / Chappal show room, office building and manufacturing unit. since 1974 • The Area of the plot after the required minimum set offs on all side is 2,000 sq. mts (21,528 sft) • It is proposed to construct a Mega Leather Complex with a private participation in the project. It is proposed to construct two cellars (Lower Cellar and Upper Cellar), Ground Floor plus 8 floor building complex. L I D C A P BJR Mega Leather Show Room
Tirupathi Leather Park • LIDCAP is having 4.5 acres of land in the outskirts of the Tirupathi City • 4 buildings are constructed of which one building (about 800 Sft) is leased to one small industry and one building (about 600 sft) is being used as Regional Office • Two more buildings (of each 2000 sft) is for the purpose of training (presently not being used). It is proposed to lease this buildings along with foot wear training machinery and also part of the office building.