Nov. 4 – In a major push to develop infrastructure and attract foreign investment to the nation’s leather industry, the central government has sanctioned a US$70 million leather park Commerce and Industry Minister Anand Sharma said on Tuesday.

An Indian Leather Development Program with an outlay of US$288 million for overall development of the leather sector has been put in place. It would help in augmenting raw material base, enhancing capacity, addressing environmental concerns, human resource development as well as infrastructure development and attracting investment and global marketing of Indian leather.

The moves are similar to those employed by the Taiwanese leather giant Pou Chen, one of the largest footwear manufacturers in the world. They established a footwear park in Dongguan, South China several years ago to bring together in one unit all the component parts of shoe wear and leather processing. Everything from leather tanning, sole manufacturing, laces and ringlets were manufactured in the park.

“I remember the leather manufacturer Prime Tanning were clients of ours in China and we had discussions with Pou Chen over their acquisition,” said Chris Devonshire-Ellis, the managing partner for Dezan Shira & Associates in India. “The leather park in Dongguan was and remains very impressive and if the Indian government supports such initiatives then this is what foreign investors want to see.”