Empowering SMEs in the Leather and Footwear Industry

India accounts for nearly 13% of the world’s leather production. The industry handles an annual production of about three bn sq. ft. of Leather, and it is one of the top foreign exchange earners for the country. The major drivers of the leather sector in India include the footwear and fashion industry. 

Although India has an abundance of raw materials with access to 20% of the world’s cattle and buffalo and 11% of the world’s goat and sheep population, Indian leather manufacturers and exporters majorly export their products to foreign countries. This process had a significant impact on the leather industry, especially due to the prevalence of Covid-19. The global garment industry asked for discounts on orders already supplied and reduced orders for new supplies. With international brands not paying for orders, leather manufacturers had to bear the brunt of the crisis. In India, the leather industry is highly fragmented, with small manufacturers spread across the country. Therefore, the delayed payments for orders have disrupted the capital flows, especially for small and medium-sized firms. 

As mentioned above, Indian Leather is exported hugely to international markets, and most Indian goods are made from imported scrap leather, which reduces the quality of the end-product. We at OfBusiness, strongly believe that these fragmented manufacturers can make more profits by using the Leather that is being exported as raw material and producing the high-quality end product that can be valued as much as three times more than the raw Leather.

Many leather manufacturers in India are small and medium-sized enterprises, so acquiring enough capital to procure the more expensive Indian Leather always remains a challenge. This is where we aim to act as a bridge between the capital needs of the businesses and procuring quality Leather by fulfilling their credit requirements. With smart procurement for SMEs, OfBusiness aims to provide quick access to capital for leather manufacturers and exporters. 

The leather industry is also marked by the presence of multiple middlemen involved in the supply chain from procurement to delivery. Owing to the same, the whole supply chain becomes cumbersome. This eventually led to price hikes in the Leather raw material until it reaches the end-user. Thus, OfBusiness aims to bridge the gap between suppliers and buyers through a streamlined process so that many small businesses can access quality leather at much lower prices. 

OfBusiness envisions to make the leather manufacturers of India self-sufficient with the finest quality of Leather available to them. In the long run, we want India to export the best quality of Leather finished goods. OfBusiness provides SMEs access to cash flow-based financing for buying Leather directly from suppliers at the best prices in order to empower them to expand operations. We push very hard for SMEs to Get the best quotes for leather procurement with OfBusiness. Get in touch today.

OfBusiness aims to cluster fragmented manufacturers throughout India and support them with their Leather and capital requirement for producing high-quality end-products.

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