The Hindu : Tamil Nadu News : Growth sets Ambur leather sector shining

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Friday, Aug 20, 2010
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Tamil Nadu

Tamil Nadu

Growth sets Ambur leather sector shining

Serena Josephine. M

It looks forward to expand its facilities

Finished products are exported to the countries such as the U.K., Italy, Germany, the U.S.
Vaniyambadi alone has domestic business for approximately Rs. 700 crore to Rs. 1,000 crore

AMBUR: Quality products, good market and international branding have enabled the leather sector at Ambur, Vaniyambadi and Pernambut to sustain its positive and fast growth, even as the national average witnessed a negative trend last year. In fact, the leather sector here is looking forward to expand its facilities, increase capacity and move into rural areas in the near future.

The leather sector at Ambur, Vaniyambadi and Pernambut accounts for nearly 45 per cent of the total leather exports from south India. Ambur alone exports leather and finished leather products worth Rs. 1,780 crore, while Vaniyambadi exports to the tune of RS. 300 crore. Pernambut accounts for Rs. 150 crore worth exports, according to Chairman of Ambur Economic Development Organisation Limited (AEDOL) M. Rafeeque Ahmed.

“Leather and finished leather products are exported to countries such as the U.K., Italy, Germany and the U.S. Vaniyambadi alone has domestic business for approximately Rs. 700 crore to Rs. 1,000 crore, mostly finished leather for leather garment exports. They are slowly taking to shoe leather,” he explained.

In fact, the three regions had accounted for Rs. 1,300 crore to Rs, 1,400 crore worth exports three years ago. “The increase in exports is owing to value additions. Earlier, only leather was exported but now leather products are in plenty.

The demand for products is more,” he observed. Last year, nationally, the leather industry witnessed a negative growth of eight per cent, he said, adding, “However, Ambur and its neighbouring areas registered five per cent growth and the sector here is definitely growing when compared to the national level.” Mr. Ahmed attributed this to quality products, good market and international branding. “These areas are suppliers to big brands,” he noted.

With approximately 350 containers being engaged per month for exports and 100 containers for imports, AEDOL is planning to establish an ICD terminal housing 500 containers at Ambur. “We are looking at two to three places, mostly adjacent to the National Highway so that container movement will be easy,” he said.

After being concentrated in urban and suburban areas for years now, the sector now looks forward to not only increase its capacity but also expand into rural areas, he said, adding, “We want to move to rural areas for labourers in the near future.”

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