- Join Our Exclusive Weekly Newsletter
- Posts
- K H Exports Signs Technology Deal With CLRI to Adopt Eco-Friendly Yarn From Leather Dust
K H Exports Signs Technology Deal With CLRI to Adopt Eco-Friendly Yarn From Leather Dust
How Iran is Pushing to Revive its Footwear Industry and Become a Strategic Hub in West Asia
Arshad Leathernews.org
October 13, 2024
Good Morning & Welcome to our weekly newsletter! Here, we bring you the entire week's global news, insights, market research & analysis, expert insights and facts from the "leather, footwear, and leather goods" industry.
In a simplified and easy-to-understand manner, saving you time while keeping you informed and updated.
In case you missed it, here’s a look at what happened in the Global Leather & Footwear Industry last week.
LEATHER INDUSTRY NEWS
On October 8, 2024, CSIR-Central Leather Research Institute (CLRI) celebrated the 83rd Foundation Day of the Council of Scientific and Industrial Research (CSIR). Shri Arun Roy, IAS, emphasized the need for enhanced R&D in the footwear industry to drive cost reductions.
A key highlight was the launch of the CLRI Leather Mark, a new certification ensuring high-quality leather standards, with each product featuring a QR code for transparency.
Additionally, CSIR-CLRI introduced a process to repurpose leather waste into eco-friendly yarn. K H Exports India signed a technology licensing agreement to adopt this sustainable innovation.
Bangladesh is set to transform its leather and footwear sector into a key export driver, contributing significantly to the economy.
Commerce and Finance Adviser Dr. Salehuddin Ahmed highlighted the sector's potential, noting its locally sourced leather as a major advantage. With 200 tanneries, 3,500 MSMEs, and 2,500 footwear units, the industry meets 10% of global leather demand, attracting brands like Adidas, Nike, and Timberland.
Government initiatives, including a new Tannery Estate in Savar with eco-friendly CETP facilities, aim to modernize production and boost exports to key markets in Europe, the US, China, and Japan.
Skyfat Tannery, a leather-processing plant in Jinja, Uganda, is restructuring after the deportation of 20 Chinese expatriates, who had led operations for over 19 years.
Their dismissal, attributed to poor management and failure to secure markets, led to the layoff of over 100 local workers in June 2024 without compensation, sparking protests over unpaid wages.
The factory’s new management aims to rehire locally, with six new Chinese workers training Ugandan staff to improve skills and productivity. Despite the unrest, Skyfat has committed to paying overdue wages and improving workforce conditions.
Bangladesh’s leather industry is struggling due to regulatory challenges and outdated infrastructure.
Mohiuddin Ahmed Mahin, Chairman of the Bangladesh Finished Leather, Leather Goods, and Footwear Exporters’ Association, highlighted that the Savar Tannery Industrial Estate, fully export-oriented, prevents domestic sales and suffers from a non-operational Central Effluent Treatment Plant (CETP).
This forces factories to sell leather at 70-80% below global rates. The lack of a functional CETP hampers value addition and prevents certifications like the Leather Working Group (LWG). Despite these issues, government advisers have shown a "positive mindset" towards solutions.
FOOTWEAR INDUSTRY NEWS
Iran is emerging as a key player in global footwear, currently ranked 11th among the world's top producers.
It produces 270 million pairs annually, exporting 40-50 million pairs. With foreign exchange earnings from footwear exports ranging from $100-120 million, the sector employs 500,000 people and ranks 4th in job creation potential across 71 sectors.
While Iran’s exports reached $87 million in 2022, Turkey leads with over $1 billion. Notably, Iran's footwear exports generate $2,243 per tonne, highlighting the sector's value-added potential. The industry is also reducing import dependence, strengthening local production and export capabilities.
LEATHER GOODS INDUSTRY NEWS
H&M Group, the global fashion giant, reported net sales of 59,011 million SEK ($5.7 billion USD) in Q3 2024, a decline compared to the previous year. However, in local currencies, net sales remained flat.
Gross profit stood at 30,133 million SEK ($2.9 billion USD) with a gross margin of 51.1%, while operating profit reached 3,507 million SEK ($338 million USD), reflecting an operating margin of 5.9%.
Despite the challenges, H&M is optimistic, with a promising autumn collection expected to drive future sales growth. The company also announced a share buyback program worth 1 billion SEK ($97 million USD).
INDUSTRY INSIGHTS & ANALYSIS
On 8th Oct 2024, CSIR Celebrated its 83rd foundation day at CSIR-CLRI Chennai Campus
During the event
A solution to the leather industry’s WASTE PROBLEM was also announced.
CLRI has developed a process that repurposes leather waste into high quality blended yarns.
Leather dust, a byproduct of the leather production process, is typically difficult to manage.
However, CLRI’s innovative approach blends leather dust with natural & synthetic fibers like
Cotton,
Bamboo &
Polyester to produce yarn with high tenacity & smoothness
It will be Ideal for use in automatic looms.
The yarn, boasting a count greater than 10’S (In textile terminology, yarn count is a measure of the thickness of yarn with higher numbers indicating finer yarns.)
This yarn is chemical-free & produced through a waterless process, making it an eco-friendly solution for developing value-added products.
K H Exports India Private Limited, a leader in the leather & leather goods industry, has signed a technology licensing agreement with CSIR-CLRI to adopt this innovative process.
"One more step towards sustainability, Happy that our recent technology on developing blended yarns from leather waste has been transferred to one of the leading leather and leather products manufacturer"
Well this is an exciting collaboration which underscores the leather industry's shift towards sustainable practices & offers an effective solution for managing waste while contributing to the creation of high quality products.
-------
❓ What other innovations do you think the leather industry needs to drive sustainability forward?
Thanks!
Thanks for reading our newsletter today. If you found something useful, please consider sharing it with other who might benefit from it.
Reply