Leather garment exports on the rise

Exporters told to leverage European lacuna

The export of leather garments has begun to look up after a three-year slump as Indian manufacturers moved up the value chain.

S. Audiseshiah, executive director, Council for Leather Exports (CLE), said free on board (f.o.b.) realisations had also risen in the industry.

Another reason for the rise in exports was that some customers had increased the size of their orders, he added.

CLE's statistics showed that export of leather garments in the first half of 2004-05 stood at $171.18 million, a 17 per cent growth over $146.25 million recorded in the corresponding previous period.

Leather garments are exported largely to Europe, with their pricing almost evenly split between dollars and euros.

An exporter said the euro's recent appreciation against the rupee had also contributed to improved realisations.

According to N Thegarajan, managing director, Indo Skins Garments, a Chennai-based exporter, the slump in Europe could not have continued indefinitely.

He said the market there stabilised early this year.

Though the growth in the export of leather garments outpaced total leather exports in the first half, the industry was cautious in its assessment of the future.

The current development comes after a lacklustre performance in the last three years .In 2000-01, leather garments exports stood at $460 million, the highest in the last decade.

Audiseshiah said there is a good opportunity for garment exporters in Europe, where high costs has led to declining manufacturing capacities. Indian exporters should take advantage of this, he said.