Tamil Nadu tanners looking to East Africa

One reason behind a move into region would be to benefit from the availability of raw materials.

Leather manufacturers in the Indian state of Tamil Nadu are considering the possibility of setting up tanneries in Kenya, Rwanda, Tanzania, Uganda and other East African nations. Such a move would be in order to utilise cheaper labour, the availability of raw materials and the region's proximity to European buyers.

According to Rafeeque Ahmed, president of the All India Skin and Hide Tanners and Merchants Association, labour costs in East Africa are about 60 per cent of the Tamil Nadu rate. In addition, power can be reportedly brought at one-third of what it costs in India. To supply raw material for his leather shoe factory near Chennai, Mr Ahmed set up a small facility in Ethiopia four years ago. This is proving to be of interest to other manufacturers in the state who are looking to begin operations in East Africa. Mr Ahmed expects about five factories to soon be established.

Publishing Data

This article was originally published on page 4 of the April 2017 issue of SATRA Bulletin.

Other articles from this issue »

---