In fulfillment of its mandate of enhancing the development of leather industries in the COMESA region, the Leather and Leather Products Institute (COMESA/LLPI) in collaboration with the COMESA Secretariat, constituted a Business Mission to India and Turkey, both leading countries in the leather sector globally, seeking to bench mark with and learn from their key success industry performers and the development of partnerships.
The Mission was headed by the Secretary General of COMESA, and included the Director of COMESA LLPI, two staff members of COMESA /LLPI, the Chairperson of the SMEs Technical Committee and two members of the COMESA/LLPI Core Team, both entrepreneurs involved in the leather footwear and leather goods production. The diversity of the delegation was intended to create a platform for drawing multidimensional lessons, for technocrats to pick policy and technical issues, whilst the entrepreneurs pick specific issues to be used to improve performance of the value chain at the shop floor level.
Overall Goal of the Business Mission:
The mission was expected to draw lessons that can be used to contribute to the transformation of the COMESA Leather value chain, specifically the production of value added products and the growth of both intra and international
trade.
Mission Objectives
The three broad objectives to be accomplished were:
- Strengthen COMESA collaboration with leading international technical institutions in the leather sector
- Develop modalities of technology transfer with international institutions
- Develop international benchmark metrics, to be used as a basis for upgrading SMEs
The Mission covered both India and Turkey and different public and private sector institutions and organizations, from government, the academia and industry were visited.
Indian Institutes visited
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Comments & Observations
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- Central Leather Research Institute Chennai
Core Areas :
Leather processing
Leather Goods and Garments
Footwear Design and Development
Environment Technology
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- Originally focusing of trainingonly, but now a fully-fledged Research Institute of international repute in matters of leather and leather products.
- Well planned infrastructure with excellent faculties and facilities - ideal location
- Solid academic foundation, well qualified multidisciplinary staff with diverse competencies
- Well established CENTER –CLAD for Leather goods design and production,
- State of art Shoe Testing Center promoting quality and standards
- Modern computer aided shoe design technology
- Chemical , biological and materials testing and analysis laboratory
- Meetings with top management team and expression of interest/intentions and expectations
- Discussions to establishment an MOU for joint projects, knowledge and skills transfer and student exchange
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- Center for Leather Apparel/Accessories Development [CLAD]
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Situated within the Central Leather Research Institute offering expertize and infrastructural facilities to support the Indian leather product sector to become the global leader, under five-prong objectives:
- Research and Development
- Testing and Research Facilities
- Design and Development
- Human Resource Development
- Computer Aided Design (CAD) Training
- Consultancy services-
Proposal to conduct a consultancy for African designers mooted.
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- The RanipetTannery Effluent Treatment Co. Ltd.
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A modern Common Effluents Treatment Plant shared by 82 tanneries
- The Tanners associate under The South India Tanners & Dealers Association and own and manage this Plant.
- Promotes salt free tanning technology under guidance from CLRI Chennai
- Self-managed by the industrialists
- Well managed common disposal of liquid waste
- Tannery water treated, and redistributed to the tanners
- Significant reduction in operational costs of individual members.
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- Pallavaram tannery Cluster Company PVT. Ltd.
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- Cluster of tanneries (133 Companies) established with assistance from Indian Government ( 50% capacity building contribution from Indian Government)and UNIDO
- Registered jointly under one Company that handles common responsibilities and shared resources
- Centralized waste management
- Centralized purchases of chemicals
- Uniform application of common standards
- sourcing common support services and functions e.g. RD function sourced from the Central Leather Research Institute [CLRI]
- Up to 40% reduction in operations cost for each member as a result of enjoying cluster membership.
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Shoe and leather goods factory
- Modern shoe production lines
- Modern leather Jackets production line, from pattern cutting, assembling, sewing, finishing, product labeling, packaging, and parking for an export client-Marks and Spencer UK
- Continuous quality checks along the production line.
- Excellent example of a modern factory layout.
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A display of excellent finished quality leathers, different skins (sheep, goat, cow hides, rabbit etc.), colors and embossed patterns.
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Turkish Institutes and places visited
Institution |
Comments & Observations
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- Turkish Leather Industrialists Association (TLIA)
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A leather Association representing 540 tanneries and specializing in:
- Marketing of “Turkish Leather” thru a Leather Promotion Council to various markets, mainly China.
- Expertise in Trade Fair organization and host of the prime internationally acclaimed B2B annual Istanbul Leather Fair
- Joint Chemical procurement for members
- Intervenes on behalf of members to resolve compliance issues with the authorities.
- Common waste management and disposal
- Updated Industry information dissemination to members
- Oversees the ongoing relocation of scattered tanneries into New Leather Zones, located in 11 areas throughout Turkey.
- Direct financial support to Association in the relocation exercise by the Turkish Government
- Proximity to a treatment plant is a prerequisite to membership
- The Association is sustained by contributions from members..
- The Istanbul Leather Fair
- attracts more than 200 exhibitors,
- offers free shuttle services from Airport, and
- organizes visits to different companies in a bid to promote
“Turkish leather and leather products”.
Invited a small delegation from COMESA LLPI to come, see and learn what happens during the Fairs, at the 2013 November 21-23 Istanbul Trade Fair.
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- The Trip to Bursa –Bus Session with the COMESA Secretary General
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This innovative session, done aboard the 300 mile bus ride from Istanbul to Bursa saw a lively exchange of useful tips and advice from the Secretary General of COMESA and brief status reports by the non-LLPI staff Mission delegates:
- Country associations must develop effective leadership and maintain sustained rapport with the Authorities to push for their development agendas.
- Information sharing with both the authorities and COMESA LLPI is important to ensure project/goal /objectives follow-thru and implementation.
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- TUBITAK Bursa Test and Analysis Laboratory (BUTAL)
- Test and Analysis;
- Materials and Textile;
- Chemical & Environmental
- Food and Agricultural Chemistry,
- Inspection Services National
- International Training.
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- An international reference laboratory in testing, analysis and product certification
- Testing and analysis services provided in the Materials and Textile Laboratory to meet the requirements of the Automotive, Textile, Leather, paper, sponge etc. sectors using national and international standards
- Offers Inspection services such as trouble shooting for products and production processes, environmental noise measurement, stack gas Emission Measurement, International supervising, Inspection-Type A which involves carrying out assessment and inspection on behalf of private clients, and or official authorities to check whether the quality, quantity, consumer convenience and safety of the materials, products, factories, processes, operational procedures or services conform with regulations, standards and specifications.
- National and international industrial Training-technical training programs and workshops organized for developing countries in cooperation with the United Nations Industrial Development Organization (UNIDO), TIKA (Turkish International Cooperation and Development Agency), and the Turkish Ministry of Industry and Trade.
- International training programs focus on improving the professional skills of the participants from developing countries in the field of technological developments, textile processing, quality and process control. International accreditation standards, etc. and technical study visits are organized to relevant plants.
- All courses, conferences and symposiums are implemented in cooperation with universities.
- Tailored practical and theoretical training programs implemented especially on test and analysis methods using modern equipment.
BUTAL already offers training services through UNIDO support to African Counties.
Discussions to enhance BUTAL and COMESALLPI collaboration focusing on the leather sector.
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- Together For Leather (TFL)
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- A company committed to developing alternatives to chrome tanning for all kinds of leathers, and general removal of harmful substances in leather making.
- It introduced chrome free technology, the TFL White Line System with the following features
- Free of chromium and other heavy metals
- Free of any other harmful substances restricted by EC regulations,
- Free of substances which are persistent in the environment and bio-accumulate and/or biodegrade into harmful substances.
- TFL boasts of superior expertise that enables tanners to make leather of high quality that complies with all major RSL lists, eco labels and the requirements of brands.
TFL Is a useful contact for all quality conscious tanners
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Meeting with the Directorate of IZMIR City and, reaffirmation of economiccooperation between Turkey and COMESA.
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- Bursa Free Industrial Zone -Tuzia Leather Zone
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- A well-organized Leather Industrial Zone within the Bursa Free Zone, , strategically located 35 miles away from the city center, but within easy reach of key points that support industrial/business activity like seaports, an airport and a major city.
- Roads, parking places and green areas;
- Health protection zone
- Waste water treatment plant
- Social and administrative facilities
- Apprenticeship training
- Commercial facilities
- Water storage tank
- Energy supply
- Natural gas plant
- Factories
There are 50 tanneries out of the registered 83 factories, some of them already constructed and functional. The Business Mission Delegates visited the Eydermir Deri Factory, Kardersan Deri Factory and Kircilar Leather Factory
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- A company specializing in leather jackets
- Noted the benefits of specialization.
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- Specializes in stocking high quality finished leather bought from tanneries all over turkey and beyond, for either resale and or for making branded leather products.
- Its finished leather collection is HUGE and amazingly diverse, in color, pattern, embossed etc,
- It offers this unique service in the leather value chain to high end fashion houses in the domestic and external markets.
- It has a well arranged show room on the factory premises, show casing its beautiful collections.
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- Ege University Leather Faculty
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Offering a range of courses in leather development, including tanning, leather processing, fashion design, leather goods, apparel and footwear, marketing etc.; from Certificates, Diplomas, undergraduate, graduate studies and Ph.D.
Well established faculty for leather development studies, with extensive expertise along the entire leather value chain. .
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Leather Clusters In Izmir Visited
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- An example of a well-established Free Trade Zone with the following facilities:
- Leasing of land, Office and Factory buildings
- Provision of natural gas, Electricity and water services
- Security and fire brigade
- Collection of waste and refuse
- Cafeteria
- Health center
- Post office
- Mosque
- Food service
- Veterinary service
- Expertise service
Ware house Renting with fair price advantages
- Loading and discharging services
- Transportation and distribution services
- Equipment and labor hiring
Several Free Zone advantages include: 100% Cooperation Tax Exemption, VAT-Stamp Duty and Free Tax Exemption, Customs Duty Exemption Income Tax Exemption Over Salaries Paid to Employees and Free Capital and Profit Transfer.
All sectors are invited including leather. The Zone has a modern Wastewater Treatment Plant for the Leather and Chemicals Sectors.
- These incentives have worked and helped to set up orderly industrial zones beneficial to the entrepreneurs/investors/industrialists, the environment and the general public.
- The Mission visited two tanneries in this Zone as named below.
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- A tannery specializing in sourcing its wet blue from Sudan and Nigeria only
- Excellent example of how application of appropriate modern technology at each stage of the value chain improves efficiency, productivity and competitiveness.
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Observations and Recommendations:
The Business mission was well conceived, the Team was carefully picked-inclusive but selective, the places visited were relevant to the mission and objectives, and the whole trip was meticulously executed. During the duration of the Mission, the non LLPI staff had a chance to witness the passion with which the LLPI staff take their responsibility of developing and driving the COMESA Leather Industries. We are satisfied that COMESA-LLPI is on the right track, and we commit to continue working with the LLPI Team to fulfill the objectives of the India and Turkey Business Mission.
In Africa/COMESA Member States, it will be difficult to adopt the Turkish or Indian Cluster models where factories are clustered in one location but in separate buildings.
The team has proposed that the most appropriate model for the African countries is to construct huge-warehouse-type structures, partitioned into 50-100 model workshops, with support services like a restaurant, internet café, washrooms, administration office, reception, training room, mini conference room, boardroom, common show/sales room, shops selling components, accessories, finished leathers and the like.
COMESA LLPI can avail model architectural drawings and other technical support and guidance to SME Associations. The enterprise Associations can own and manage these, just as we witnessed for the management of the Common Wastewater Management Plants in India and Turkey, renting out the model shops to members at subsidized costs or purchase under condominium laws .
Benefits include:
- Easy to monitor for quality, standards etc.
- This makes networking, clustering and sharing resources much easier.
- Easy to distribute handle and manage huge export orders
These model incubation centers can be replicated in several urban centers with support from local authorities and or a single donor intervention.
This model eliminates most of the constraints and challenges that force SMEs to expire within the first year of their existence.
