Leather body opens leather desk in Brazil
GLOBETROTTING
Vishal Sharma
Vishal Sharma
New Delhi/ Agra Taking steps to cater to the leather footwear demands in the South American countries, the Council for Leather Exports (CLE) has announced the opening of Leather Desk in the city of Nova Hamburgo, Brazil, to facilitate Indian leather companies to do business with Brazilian firms and expand into new markets.
CLE sources at Agra said Nova Hamburgo is the leather footwear production hub and among the leaders in exports to the world.
CLE, in an attempt to boost up its members, has opened this desk where companies can get an open platform to expand their business. Agra, being the hub of Indian leather sector, the desk is also a stage for the town's exporters to grab orders from the untapped western markets.
Speaking about the new initiative, Mukhtarul Amin, chairman, Council for Leather Exports, said: "This is a wonderful opportunity for footwear manufacturers at Agra. Unless we look at expanding our horizon to include new markets, we are bound to miss this year’s export target of $7billion."
He further added, "The industry's profit margins are witnessing a slip and this can only be decreased by searching for new markets." Brazil is also currently looking for partnership with other companies for outsourcing its shoe business.
The move comes after a steep rise in Brazilian currency.
As an effect of burgeoning Brazilian currency, the leather technicians from the country have moved out. China has already got 1500 technicians from Brazil for their own leather industry. With the rising currency, it is expected that most of the leather production will be outsourced to various countries for cashing in on the cost effectiveness.
"Both India and China provide cost effective production solutions. Given the perturbed growth scenario for Brazilian firms, it is the most favorable time for Indian business to enter into agreement with Brazilian companies lest it should lose this opportunity to China. The CLE Desk will facilitate such arrangements that would work to the benefit of both the countries," Amin added.
CLE sources at Agra said Nova Hamburgo is the leather footwear production hub and among the leaders in exports to the world.
CLE, in an attempt to boost up its members, has opened this desk where companies can get an open platform to expand their business. Agra, being the hub of Indian leather sector, the desk is also a stage for the town's exporters to grab orders from the untapped western markets.
Speaking about the new initiative, Mukhtarul Amin, chairman, Council for Leather Exports, said: "This is a wonderful opportunity for footwear manufacturers at Agra. Unless we look at expanding our horizon to include new markets, we are bound to miss this year’s export target of $7billion."
He further added, "The industry's profit margins are witnessing a slip and this can only be decreased by searching for new markets." Brazil is also currently looking for partnership with other companies for outsourcing its shoe business.
The move comes after a steep rise in Brazilian currency.
As an effect of burgeoning Brazilian currency, the leather technicians from the country have moved out. China has already got 1500 technicians from Brazil for their own leather industry. With the rising currency, it is expected that most of the leather production will be outsourced to various countries for cashing in on the cost effectiveness.
"Both India and China provide cost effective production solutions. Given the perturbed growth scenario for Brazilian firms, it is the most favorable time for Indian business to enter into agreement with Brazilian companies lest it should lose this opportunity to China. The CLE Desk will facilitate such arrangements that would work to the benefit of both the countries," Amin added.
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