Stahl Sells Leather Chemical Business & Is It Time to Rename the Council for Leather Exports (CLE) ?

Apex Tannery Signs New Deals | Kenyan Government to Double Leather Production & more in this week's Global Leather, Footwear & Leather Goods Industry News

Author

Arshad Leathernews.org
November 24, 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

Stahl has announced the sale of its wet-end leather chemicals business to Syntagma Capital, marking a strategic shift to focus on specialty coatings for flexible materials, including sustainable packaging. The deal includes 428 employees, manufacturing sites in Italy and India, and Stahl's entire wet-end portfolio.

Stahl CEO Maarten Heijbroek highlighted the move as key to accelerating innovation and sustainability, aligning with its purpose of "Touching lives, for a better world."

Meanwhile, the divested business, led by CEO Xavier Rafols, will operate independently under Syntagma, targeting innovation and partnerships. The transaction is set to close by mid-2025, pending approvals.

The global leather industry marks a significant milestone as Dr. Luis Zugno takes over as Chair of the Leather Naturally Management Board, succeeding Debbie Burton after her six-year tenure.

Dr. Zugno, Global Innovation Manager at Buckman International, boasts over 30 years of leather industry expertise, a PhD in tanning research, and leadership roles such as Executive Secretary and former President of the IULTCS.

Debbie Burton, also Communications Director at the Leather Working Group, emphasized her team's progress in updating leather's representation in the Higg MSI. Dr. Zugno pledged to advance Leather Naturally's mission as an educational resource for the sector.

Apex Tannery Limited, a leading leather manufacturer in Bangladesh, has announced new contracts with FB Footwear, Footbed Footwear, and Nuovo Shoes (BD), valued at Tk16 crore (USD 1.34 million) in annual sales. Shares rose 2.03%, closing at Tk70.50 (USD 0.59) on the Dhaka Stock Exchange.

Projected sales include:

  • FB Footwear: Tk10 crore (USD 837,000)

  • Footbed Footwear: Tk5 crore (USD 419,000)

  • Nuovo Shoes: Tk1 crore (USD 83,700)

Despite a Tk12.66 crore (USD 1.06 million) FY24 loss, Apex announced a 5% cash dividend (Tk72.03 lakh/USD 60,300) for general shareholders.

Tannery workers in Bangladesh have urged the government to expedite the approval of a minimum wage of Tk18,001 (US$150), a proposal delayed for 16 months by the Ministry of Labour.

At a meeting organized by Solidarity Center-Bangladesh, leaders from the Tannery Workers Union (TWU) and the Bangladesh Labour Rights Journalists Forum (BLRJF) highlighted the severe impact of low wages on workers’ livelihoods, worsened by increased living costs after the industry’s relocation from Hazaribag to Savar.

Speakers emphasized the need for immediate action to ensure fair wages, improved facilities, and a socially and environmentally sustainable tannery sector.

Kenya is boosting its leather industry with plans to double Ewaso Ngiro tannery's capacity from 1,200 to 2,400 metric tonnes annually, producing 4.8 million square feet of leather.

Ngala Oloitiptip, ENSDA Managing Director, announced the installation of advanced machinery, set for test runs in December 2024, to meet rising leather demand. He emphasized consistent supply of quality hides and called for stakeholder collaboration, including skilled workforce training.

Engineer Anderson Korir highlighted government efforts to address challenges like skin quality and urged locals to adopt hydrogen branding methods. This expansion solidifies Kenya’s position in the regional leather market.

FOOTWEAR INDUSTRY NEWS

Brazil’s footwear industry is set for steady growth in 2024 and 2025, driven by strong domestic demand, which accounts for over 85% of sales.

Production is forecasted to reach 893 million pairs (+3.2%) in 2024 and 904 million pairs (+1.9%) in 2025, nearing pre-pandemic levels (898 million in 2019). However, exports are expected to drop by 20%, while imports rise over 20%, fueled by below-market Asian prices.

Abicalçados is pushing to expand antidumping measures to curb unfair competition. Employment in the sector reached 294,800 jobs as of September 2024, though still 2.1% below 2023 levels.

LEATHER GOODS INDUSTRY NEWS
Kering appoints new CEOs at Saint Laurent and Balenciaga

Kering has announced leadership changes for Saint Laurent and Balenciaga, effective January 2, 2025. Cédric Charbit, former CEO of Balenciaga, will lead Saint Laurent, while Gianfranco Gianangeli, ex-Chief Commercial Officer at Saint Laurent, will take over as Balenciaga’s CEO.

Both will report to Francesca Bellettini, Kering's Deputy CEO for Brand Development. Charbit, credited with expanding Balenciaga’s global presence, aims to leverage Saint Laurent’s Parisian heritage.

Gianangeli, known for strategic growth at Maison Margiela and Saint Laurent, will strengthen Balenciaga’s global influence. These changes align with Kering’s focus on sustainable growth across Fashion, Leather Goods, and Jewelry divisions.

INDUSTRY INSIGHTS & ANALYSIS

Is It Time to Rename the Council for Leather Exports (CLE) to Council for Footwear Exports (CFE)?

(Here’s Why I Think So)

The Indian footwear industry, especially the non-leather footwear segment, has been on a steep growth trajectory lately fueled by increasing FDI's due to the China +1 Strategy

For context

In FY 22 & 23 the Indian leather industry’s exports stood at

▪ ~$4.42 billion in FY 2021–22

▪ Footwear Sector Contribution: $2.15 billion

▪ % Share: 48.57% of total exports

▪ ~$5.26 Billion in FY 2022-23

▪ Footwear Sector Contribution: ~$3 Billion

▪ % Share: more than 55% of total exports

Non-leather footwear has shown tremendous growth, with exports increasing 48.8% in just one year

➡ FY 2021–22: $505 million

➡ FY 2022–23: $752 million

➡ FY 2023-24: ?

In FY 2023–24, It’s probably already crossed the $1 billion mark (waiting on the final numbers, Will confirm it in Feb 2025).

If you see at this rate, footwear is carrying the entire Indian leather industry on its back. Literally.

So here’s the big question

If footwear is clearly the driving force in the Indian leather industry exports,

Shouldn’t we seriously consider a name change for the Council for Leather Exports? Haha

Maybe the "LEATHER" in CLE is starting to sound a bit... outdated?

Maybe it’s time for a new & a more fitting title

Something like Council for Footwear Exports (CFE)?

Because let's be honest, it's the footwear sector that's carrying the load here.

But hey, at the end of the day, it all contributes to India’s leather export numbers right? Haha

If footwear, especially the non-leather footwear is what will help us hit CLE’s $50 Billion Ambitious target by 2030

Then why not ride that wave & give the due credit?

So, why not officially crown footwear, especially the non-leather footwear (the secret weapon of CLE’s ambitious vision) and call CLE as CFE?

But hey, this is just me being cheeky. Or is it?

Criticism welcomed, It's just my perspective

❓ So, what do you think? Should CLE really change to CFE? Haha, Let me know your thoughts in the comments

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Written & Published by Arshad | Leathernews.org

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