SL’s footwear and leather value addition a strong 45%: Rishard

Sri Lanka’s footwear and leather sector is not only an employer with promise but also demonstrates significant value addition. Meanwhile, the sector praised the Government for its initiatives but says the emerging ‘footwear assembly sector’ is a threat to the industry.

“Our average annual national production of footwear alone is over 30 million pairs at a value of $47 million. Our footwear and leather value addition is around 45% and in 2012 we exported $31 million of footwear and leather to global markets,” said Minister of Industry and Commerce Bathiudeen on 02 April.

Bathiudeen was addressing the ceremonial session of the Annual General Meeting of the Sri Lanka Footwear and Leather Products Manufacturers Association (SLFLPMA), held at the EDB auditorium.

This is the second such AGM after SLFLPMA’s 2010 reformation. The association has 54 member companies and is the leading private sector body in Sri Lanka’s representing large scale footwear and leather firms.

“The Government has identified this as a thrust sector with great contributing potential to our export goal of $20 billion by 2020 as per the committed vision of President Mahinda Rajapaksa,” Bathiudeen stated.

He added: “Today I am also pleased to inform you that Sri Lanka has successfully taken part in the first ever Leather Industry Association of South Asia sessions by UNCTAD held in Chennai. This UNCTAD facilitated forum was the first industry-specific association to be formulated in South Asia. The inclusion of Sri Lanka in these pioneering session shows that our leather and footwear industry has clearly established its reputation as a key supplier in the region’s $2.5 billion leather market as well as the supply chain. In fact, when it comes to South Asian intra-regional footwear and leather exports, Sri Lanka has earned the third place with 16% of the region’s total exports, closely following India and Bangladesh.

“It is also estimated that South Asia’s leather market potential is more than $2.5 billion; three times the current trade levels. Increased value addition in this sector can bring greater benefits to this industry which has strong employment potential, due to its labour-intensive nature. Our footwear and leather value addition is around 45 percent and more than 20,000 people are directly employed in this sector. I am also given to understand, that our average annual national production of footwear is over 30 million pairs at a value of $47 million. In 2012 we exported $31 million of footwear and leather, which is an increase of 3.3% in comparison to 2011. Marks & Spencer, Bata France, H.H. Browns, Clarks, and Nike are among the global footwear brands, sourcing from us.”

Speaking on his initiatives on this sector, Bathiudeen said: “The Government has allowed duty free import of leather to facilitate the industry. Sri Lankan leather product manufactures have already established themselves in the international marketplace supplying to famous international brands such as Playboy, Laurel, and Helen Kaminski. The 5th edition of the international Footwear & Leather show successfully concluded in February. We have also started discussions with the Indian Footwear Development Design Institute to set up a footwear training school with SLITA. Also the first Sri Lankan student batch of leather and footwear manufacturing will be receiving certificates from us next Tuesday.”

“We in the leather and footwear industry praise the government for its new initiatives for us,” said D. Samson Industries Chairman Kulatunga Rajapaksa who is also the outgoing President of SLFLPMA while addressing the event. “The 5th edition of the international Footwear & Leather show successfully concluded in February opened many doors of opportunity for us. Many large footwear and leather firms secured several orders during this event. The new footwear subsector; the footwear assembly has become a threat to this sector. And this new sector does not generate any new employment opportunities either since no machinery of factories are needed to perform.”