LEATHER SECTOR SKILL COUNCIL (SSC) Overview of Indian Leather Industry A prominent sector in Indian economy in terms of employment generation and export earnings Strong production base - Annual production - US $ 8.5 Billion (Exports USD 5 billion and Domestic market USD 3.5 billion) 3.04% share in global leather trade of US$ 159.89 billion (2011) Value-added finished products constitute 80% of exports from a mere 7% in 1956-57 Overview of Indian Leather Industry 70% production from SMEs Employs 2.5 million workforce Women constitute 30% of work force in organized units India is - Second largest producer of footwear and leather garments - Fifth largest exporter of leather goods & accessories. - Third largest exporter of saddlery & harness items. - Produces about 2 billion sq.ft. of leather, meeting 10% of the global requirement. Export Performance of Indian Leather Industry in last 2 decades Economic liberalization programme in 1991 aids growth. Exports from Indian leather industry - USD 1.48 billion in 1990-91 - USD 5 billion in 2012-13. Value added products (Bags, Wallets, Belts, Gloves, Garments, Saddlery and footwear) - 80% of exports. Exports in Million USD 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 5 1.48 1990-91 1.96 2000-01 2012-13 Export Performance of Indian Leather Industry in last 10 years 5 Million USD 4.5 4 3.5 3 4.86 2.5 2 1.5 1 1.87 3.05 2.75 2.21 2.49 3.54 3.59 3.4 5 3.96 0.5 0 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Share of product segments in exports 2012-13 Projected Growth in exports Exports projected to grow at 20% per annum & reach USD 12.40 billion by 2017-18 14.0 12.0 10.0 8.0 6.0 4.0 2.0 5.0 6.0 7.2 8.6 10.4 12.4 0.0 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Value in Million USD Projected growth in domestic market Domestic leather & leather products industry – present value USD 3.5 million - to grow at 12% per annum – reach USD 6.17 billion by 2017-18. 7.00 6.00 5.00 4.00 3.00 2.00 4.92 4.39 3.50 3.92 5.51 6.17 1.00 0.00 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Value in Million USD Employment in Leather Industry An estimated 2.5 million workforce is employed in leather industry Workforce Concentration ( in millions) 0.3 12% 1.1 44% Finished Leather 1.1 44% ( 1.1 million) Footwear and Components (1.1 million ) Leather Garments and Goods (0.3 million ) Employment Projections in Leather Industry Leather Industry Employment (millions estimated) 3 2.7 2.5 2.7 2.4 2.2 2.0 2 1.3 1.3 1.4 1.7 1.6 1.5 1.4 1.5 1.9 1.6 1.8 2.0 2.5 2.3 2.1 Footwear & Components 1.7 1 0.3 0.4 0.4 0.4 0.5 0.5 0.5 Finished Leather 0.6 0.6 0.6 0.7 Leather Garments & Goods 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 The expected employment by 2022 is 7.1 million, needing an additional 4.6 million workforce across various segments Skill Levels of Workforce 90% of workforce in leather industry are under unskilled and semi-skilled categories. Education Percentage of People CA, MBA 1-2 % Other Graduates 3-5 % Engineers 1-2 % Diploma or Equivalent certification 2-3 % ITI & other Vocational Courses 1-2 % Class 12th/10th & below 85-90% Action Plan of Leather Sector Skill Council Develop National Occupational Standards (NOS) for 50 job roles in in next 2 years. NOS for 17 job roles – formation under progress. NOS for following 5 job roles – completed Job Roles Identified Assistant Operator - Finished Leather Buffing Operator – Finished Leather Stitcher – Leather Goods/ Garments Assistant Operator - Footwear Cutter - Footwear NSQF Segment and Role details Level Tannery based mechanical processes – 2 Helper (multi-skilled) 3 4 2 4 Finished Leather – Buffing Operations Leather Goods/ Garments – Stitching Operations Footwear Processes – Helper (multiskilled) Footwear – Cutting Operations Note : NSQF- National Skills Qualification Framework. This is fixed by NSDC based on the level of a particular job role in the industry Action Plan of Leather Sector Skill Council ( Contd..) • Appoint 3 accredited institutions and 410 training institutions •Development of Labour Market Intelligence System (LMIS), •Facilitation of development of Contents and Curriculum for identified National Operating Standards (NOS) through accredited partners. •Training the workforce through 410 training institutions •Signing MOUs with industry players for employing the workforce. • Leather SSC Expected to provide certification to about 2 million learners/workforce by 2020 (43% of the estimated new workforce of 4.6 million and 26% of the total workforce of 7.1 million by 2020). ***********