The post-liberalization era has opened up a plethora of opportunities for the Indian leather industry. With global players looking for new sourcing options, India stands to gain a bigger share of the global market. India has a 2.62% share. The major leather products and exports from India are hides and skins such as cow and bull calf, sheep nappa, goat skin, kid leather, wet blue, etc. Footwear and footwear components like shoes, shoe uppers, soles etc., leather garments, leather gloves, leather saddlery goods, leather travel bags and totes, leather purses, wallets, briefcases etc.in the global leather trade during 2006, with the exclusion of nonleather footwear; the share is slightly higher at 3.41%. The composition of exports has also been changing, with more and more value added products being exported. India has distinct advantages in the leather industry in terms of availability of raw materials. India has the largest livestock population in the world. This has enabled India to become a significant player in the world leather market, with exports growing at a CAGR of 11.9 % over the time period 2003-04 to 2007-08. The composition of export of leather and leather products from India has undergone a structural change during the last three decades, from merely an exporter of raw material in the sixties to that of value added products in the nineties. The value added finished products presently constitute around 80% of the total export from the industry, which was mere 7% in 1956-57. With the around 50% of the total leather market in India is constituted by the footwear industry and the remaining is attributed to other leather products.
The domestic industry is highly fragmented and around 70-75% of the industry capacity is accounted by large numbers of small scale manufacturers. In the organized segment Bata India is the largest player with a market share of almost 35%.