Tanners in India are looking at production of upholstery leather and products in a big way. Now the upholstery leather production is dominated by China, Italy, Argentina and Brazil. Indian tanners are waking up to the immense market potential of this specialised leather taking advantage of the substantial availability (10% world production) of buffalo hides, the basic raw material.

According to data compiled by the scientists of Central Leather Research Institute (CLRI), of the global production of 20 billion sq ft of leather, about 18%, or 3,600 million sq ft, is upholstery leather. Of this 60%, or 2160 million sq ft, is used in automotive sector, as seat covers in car etc, 30% (1,080 million sq ft) for furniture and 10% (360 million sq ft) for aircraft seating. This highly sophisticated, durable and elegant leather is also used in yachts and cruise ships.

In India, of the 2,100 million sq ft of leather produced a year, only 10% to 15% (210 million sq ft to 315 million sq ft) is upholstery leather. Almost 90% of this is used for automotive seat covers and the balance for furniture. Zacria Sait, head of the Indian Finished Leather Manufacturers and Exporters’ Association (IFLMEA), said, tanners, especially those in Tamil Nadu, should look at the production of upholstery grade leather and the final products as a potential growth area. Since Tamil Nadu is the automobile manufacturing hub of the country, tanners have a ready market in the state.

Substantial increases in wages and power tariff in China would make India an attractive global sourcing centre for automotive leather, becoming a trendy fashion among the affluent consumers across the globe. “We should take advantage of this opportunity,” he said.

CLRI research scientists said the use of leather in automotive sector has been growing very fast. From a mere 5% share in 1994, leather use in this sector grew to 14% in 2000 and is estimated to hold around 30% share soon. Over 50 lakhs cars were sold in 2007.

They said India’s advantage in the production of upholstery leather is its raw material base, ready to use technology, skilled manpower and comparatively economical cost factors. With 56% of the world buffalo population, India is the largest producer of buffalo hides.

Sait said the quality and size of Indian buffalo hides were not up to the expected levels. However, imports would make up for this.