In a move to help tanneries cut procurement costs, the Entrepreneurship Development Institute of India (EDII), Chennai, has floated a special purpose vehicle under Business Development Services (BDS) Market Development Project of Small Industries Development Bank of India (SIDBI).
The pilot project is intended to enhance the overall manufacturing capacity and export of leather and leather products of Micro, Small and Medium Enterprises in Pallavaram under the Chennai leather and leather product cluster.
According to him, 170 tanneries and 260 leather products units in the Chennai leather cluster employed about 40,000 people.
It produced approximately Rs.4,000 crore worth of products, out of which export was Rs.2,000 crore.
“Within a short span, we have demonstrated the strength of cluster approach. Out of the 170 firms located in Pallavaram, Nagalkeni and Chromepet, 22 tanners have joined the SPV. There are about 30 tanners in Madhavaram and Kelambakkam areas and are willing to avail our services. This concept can be extended to Ambur, Ranipet, Vaniyambadi, Tiruchi, Dindigul and Erode as well,” he said.
Dr. Naidu said that they had formed Association of Footwear Components Accessories and Machinery Manufacturers of India to set up ‘Information and Display Centre for components' at Central Footwear Training Institute.