Leather exporters plan park to woo French buyers

India could become a production base for French leather good manufacturing companies facing problems owing to competition from China.

A two member delegation from French Leather Goods Association, the apex body of leather goods manufacturer, will shortly visit Kolkata, Chennai and Kanpur to explore various aspects of Indo-French leather trade, including joint venture opportunities in finished product and tanning facilities.

They may identify units capable of producing quality products for the fashionable French market, backed by technology transfer and long term procurement contracts.

To step up exports, CLE was setting up a fashion studio and training centre in Kolkata at a cost Rs 5 crore. It had signed technical tie ups with Italian agencies recently.

Germany was also plagued by high production costs. Its tanning industry was seeking new bases and India could be an option.

France, according to the International Trade Commission (ITC) figure, imported $ 4.8 billion worth of leather and leather products in 2001. India's share was 1.84 per cent.

Council for Leather Export (CLE), the apex export promotion body under Union commerce ministry, was likely to sign an memorandum of understanding (MoU) with FLGA.

"India was offering an alternative manufacturing base for small and medium French companies who closed down operation after becoming uncompetitive to Chinese players. These companies have strong technology, idea of contemporary fashion as well as marketing network but lack low cost production base. India can offer that," S S Kumar, chairman, CLE, told Business Standard.

Big fashion and apparel houses of France generally did not use imported leather except limited quantities from Africa. "Asia as procurement hub itself posed a mindblock for the French but we have to overcome that," Kumar said.