The units in the industry are suffering due to inflation, insufficient availability of resources, and lack of effective conditions in their running. There are over 300 units in this industry, manufacturing leather jackets, trousers and shirts, among other products. The industry employs nearly 40,000 people, and earns about Rs. 900 crore as collective annual turnover.
It sells its products to various states within the country, and in other countries, too.
“The cost of raw materials, like skin, has been rising frequently. Therefore, we need to spend more to get high-quality leather in the market. However, the prices of the finished products remain stagnant, as clients are never ready to pay higher prices, ” says Raghav Chawla, one of the manufacturers.
“This has been affecting the profitability of the cluster, and growth has been declining,” he says.
“We have to get raw material from traders, as we do not have any direct approach to it. Due to this, the performance of the cluster has been affected,” says Sandeep Kumar, another industrialist.
“ We also face several other problems such as irregular supply of power, poor linkages with nationalized banks, limited resources, and the presence of Chinese products in the market, ” says Manan Kapoor, another industrialist.
“The state government should provide us alternative sources of energy, such as a biomass plant, to avoid the hurdles in the smooth flow of work. There should be awareness among the industrialists regarding the schemes provided by nationalized banks to get proper and sufficient resources to run the industry. Measures should be taken to maintain the quality of production, so as to conquer the market and decrease the demand for Chinese counterparts, ” he says.
“The industry possesses the potential to beat Chinese competition, but it needs some support from the state government, ” he adds.