Reviving Telangana's Leather Industry: Addressing Challenges and Rebuilding Sustainable Supply Chains

 Reviving Telangana's Leather Industry: Addressing Challenges and Rebuilding Sustainable Supply Chains


The leather industry has long been a critical sector for Telangana, leveraging its robust livestock base. The state’s livestock sector has witnessed remarkable growth, achieving a Compound Annual Growth Rate (CAGR) of 18.2% between 2014-15 and 2021-22. However, this growth contrasts sharply with the decline of leather tanning units, which has disrupted supply chains, created waste, and exacerbated environmental concerns.


This blog explores the decline in leather tanning units in Telangana, its impact on the supply chain, and sustainable solutions to rebuild this vital industry.



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Telangana's Livestock Growth: A Potential Untapped


Telangana's livestock population has seen steady growth, contributing significantly to rural livelihoods and the state’s economy. Key statistics highlight the sector's potential:


1. Livestock Contribution: Telangana ranks among the top states in livestock production, with a focus on cattle, buffalo, sheep, and goats.



2. Economic Growth: The livestock sector contributed 13.94% CAGR to the state's Gross Value Added (GVA) in agriculture, forestry, and fisheries between 2014 and 2021.



3. Resource Availability: The state produces vast quantities of animal hides and skins annually, a valuable raw material for the leather industry.




Despite this growth, the absence of a functional leather processing ecosystem has led to wastage of raw hides, creating environmental and economic challenges.



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Challenges in Telangana’s Leather Tanning Industry


1. Decline of Leather Tanning Units


Once a thriving sector, Telangana's leather tanning units have dwindled due to:


Environmental Regulations: Stricter pollution control norms have increased compliance costs, forcing small-scale tanneries to shut down.


Technological Gap: Many traditional tanneries lack modern, eco-friendly technologies, making them non-competitive.


Global Competition: Established leather hubs in Tamil Nadu and Uttar Pradesh dominate the market, leaving Telangana behind.



2. Waste and Environmental Concerns


Improper Disposal: Without adequate processing facilities, raw hides and skins are often left to rot, leading to foul odors and the spread of diseases.


Pollution: The absence of effluent treatment plants (ETPs) has made leather tanning a significant pollutant in areas where units still operate.



3. Broken Supply Chains


Collection Issues: Disorganized systems for collecting and transporting raw hides to processing units lead to wastage.


Market Disconnect: Farmers and small livestock owners often lack access to buyers, reducing their income potential.




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Proposed Solutions: Reviving the Leather Industry


1. Modernizing Leather Tanning Units


To attract and sustain small-scale tanning units:


Adopt Eco-Friendly Technologies:


Introduce vegetable tanning methods using natural tannins from tree bark and leaves.


Implement waterless tanning techniques to reduce resource consumption.



Upgrade Existing Facilities:


Provide subsidies or grants for installing Effluent Treatment Plants (ETPs).


Encourage solar-powered drying units to reduce energy costs.




2. Building Sustainable Supply Chains


Organized Collection Systems:


Establish cooperative networks for collecting hides and skins from rural areas.


Train local farmers and livestock owners in proper handling and preservation of hides.



Centralized Processing Units:


Create small-scale processing hubs in rural clusters equipped with shared resources and eco-friendly technologies.




3. Policy and Financial Support


Incentives for Sustainable Practices:


Provide tax rebates for tanneries adopting green technologies.


Offer low-interest loans to small-scale entrepreneurs in the leather sector.



Supportive Regulations:


Simplify compliance processes for small tanneries while ensuring environmental standards.




4. Encouraging Entrepreneurship


Skill Development Programs:


Partner with institutions like FDDI to train rural youth in leather processing and product manufacturing.



Promote Innovation:


Encourage startups to explore value-added leather products such as bags, wallets, and accessories.




5. Branding and Market Access


Leverage Telangana’s Identity:


Market leather products as eco-friendly and ethically sourced, catering to global demand for sustainable goods.



E-Commerce Integration:


Partner with platforms like Amazon and Flipkart to connect small-scale tanneries and leather artisans with a broader market.





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Case Study: Tamil Nadu's Leather Clusters


Tamil Nadu’s success in establishing organized leather clusters offers valuable lessons for Telangana:


Dedicated Zones: The state’s Ranipet and Ambur regions are equipped with shared ETPs, modern machinery, and strong supply chains.


Government Support: Financial incentives and training programs have strengthened the industry’s global competitiveness.




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Proposed Action Plan for Telangana


Phase 1: Short-Term (1-2 Years)


1. Conduct a feasibility study to identify regions with the highest potential for tanning units.



2. Provide immediate financial assistance to small-scale tanneries for modernizing equipment.



3. Establish organized networks for raw hide collection in rural areas.




Phase 2: Medium-Term (3-5 Years)


1. Develop centralized tanning clusters with shared resources and ETPs.



2. Launch training programs for rural entrepreneurs in eco-friendly leather processing.



3. Build partnerships with private companies to co-invest in sustainable tanning technologies.




Phase 3: Long-Term (5-10 Years)


1. Establish Telangana as a hub for sustainable leather products, targeting domestic and international markets.



2. Secure Geographical Indication (GI) tags for Telangana’s unique leather goods.



3. Continuously innovate and scale up production capabilities while maintaining sustainability.





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Conclusion: A Sustainable Future for Telangana’s Leather Industry


Reviving the leather industry in Telangana requires a holistic approach that integrates environmental sustainability, economic growth, and social inclusion. By modernizing tanning units, rebuilding supply chains, and leveraging policy support, the state can transform waste into wealth and create a thriving leather economy.


As Prof. Arun Kumar Gaikwad rightly observes, “The growth of the livestock sector presents a unique opportunity for Telangana. By aligning this growth with sustainable leather practices, we can turn challenges into opportunities and create a global benchmark for eco-friendly leather processing.”



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Call to Action


How can we collectively address the challenges facing Telangana’s leather industry? Share your insights and ideas to help shape a sustainable future.


#SustainableLeather #TelanganaLivestock #LeatherTanning #SupplyChainRebuilding #EcoFriendlyPractices


Authored by:

Prof. Arun Kumar Gaikwad

Chair, School of Fashion Design

FDDI Hyderabad




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