About the Leather Sector
The Indian leather industry has a considerable impact on the economy. It is one of the top ten foreign exchange earners in the country. In India, the cattle and buffalo population is about 20%, and the goat and sheep population is around 11% of the world’s total. This makes India stand at a dominating position regarding raw material availability.
In India, there are four main leather sectors: Tanning, Leather Garments, Leather garments and Accessories and Footwear. The country contributes about 13% of the total leather production in the world. India is the second-largest producer and consumer of leather footwear. Primary footwear and leather products-making states in India are West Bengal, Tamil Nadu, Maharashtra, Uttar Pradesh, Karnataka, Punjab, Haryana, Madhya Pradesh, Kerala, Jammu & Kashmir and Rajasthan. The leather industry in India offers huge employment opportunities where it employs about 4.42 million people, with ~30% of the employees being women.
Future Outlook of the Leather Sector in India
The leather industry in India has immense potential for growth in the future. By 2030, the footwear and leather industry in India is expected to touch an overall turnover of $47.1 billion.
Things To Consider Before Investing in the Leather Sector
- Global market trends: Monitor global trends in the leather industry, considering factors like fashion preferences, sustainability, and consumer demand.
- Raw material availability: Understand the stability and sustainability of the raw material supply chain, particularly the sourcing of leather hides.
- Environmental and ethical practices: Evaluate companies' commitment to sustainable and ethical practices in leather production, as environmental concerns and ethical considerations impact consumer choices.
- Market demand: Understand market demand for leather products and be aware of evolving consumer preferences, which factors like fashion trends and sustainability concerns may influence.
- Regulatory compliance: Ensure that companies comply with local and international regulations regarding environmental standards, labour practices, and product quality.
How To Invest in Leather Sector Stocks?
Investing in leather stocks via Angel One is easy. Simply follow these steps:
- Log in to your Angel One account.
- Click on the search icon and look for your desired leather sector stock.
- Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
- To complete your transaction, click on the ‘Buy’ button.
If you don’t have a Demat account with Angel One, you can open one for free online within minutes.
