The Tanning Industry
The industry has a large tanning capacity per day but it utilizes only 60-70% of its installed capacity. The turnover of the tanning of the tanning industry is estimated at Rs.8000-9000 crore for the year 1999-2000. The industry produces about 2 billion sq.ft of finished leather of which only 10-15% valued at US$240Mn. is exported. The problem relating to effective discharges of effluents which is a WTO compulsion is increasingly threatening the small and medium scale tanneries all over the country. The tanning industry is heavily dependent on indigenous raw hides and skins for its supply of raw materials which is very fragmented. Imports are low despite exemption from customs duties due to high import prices (3-4 times higher) and absence of appropriate machinery to process the imported hides and skins. As international pressures to supply good quality leather products mount, the leather manufacturers would have to increase the use of imported hides ans skins to improve the image of Indian Leather and Leather products. In the Indian tannin sector, the tiny units primarily engage in producing semi-finished leather, the small units engage in producing both semi-finished leather and finished leather and the large units are usually fully integrated units. There are many drawbacks in this industry, it needs to upgrade technology, it needs proper finance for high capital investment, poor & erratic Raw material, production and process and infrastructure.