Building BusinessServices

Section 21

Ambur, Vaniyambadi, Pernambut and Ranipet (Palar valley)

Tirupathur, Tamil Nadu · Manufacturing

Finished leather, leather shoes and gloves for export

sourced figures
3
main products
5
businesses to start
7

The story

Tanning in the Palar valley grew in the late nineteenth century, when local traders processed hides and skins using vegetable tanning. East India (EI) tanned leather from this region became known in British markets and is now a GI. After the 1970s the industry moved into finished leather and then shoes for European brands. Today the valley is one of India's largest leather and footwear export belts, with major tanneries also at Ranipet.

In numbers

  1. Leather exports from the Ambur–Vaniyambadi region reached ₹4,767 crore in FY12, 20.5% of India's total leather exports.

    Tightly stitched — Outlook Business (State of Business 2013) · 2013
  2. The Ambur–Vaniyambadi–Palar Valley leather cluster had 1,620 MSMEs and 18 large enterprises employing about 1,40,000 workers (2012 MSME profile).

    Tightly stitched — Outlook Business (State of Business 2013) · 2013
  3. East India Leather is a registered GI (application 95, certificate 61).

    GI Registry — East India Leather, application 95

GI tag

Ways in for a newcomer

  • Shoe-upper stitching and component job-work for exporters
  • Supply of soles, insoles, laces, adhesives and packaging
  • Leather goods (bags, belts, wallets) using local finished leather
  • Testing, compliance and chemical-management services

Problems the cluster faces

  • Strict pollution control and zero-liquid-discharge rules for tanneries
  • Shift of buyers to synthetic and non-leather shoes
  • Export demand swings in Europe and the US
  • Labour shortage and wage rises

Businesses to start here

Finished Shoe-Upper Leather Tannery →Leather Shoe Manufacturing →Footwear & Leather Goods Unit →Industrial Leather Hand Gloves →Leather Bag Making →Leather Waist Belt Making →Upholstery Leather Tanning Unit →

Sources (3)
  1. Tightly stitched — Outlook Business (State of Business 2013)
  2. GI Registry — East India Leather
  3. Completed Common Facility Centres under MSE-CDP (as on 22 Mar 2024), Office of DC-MSME