Dear Stalwarts and Leaders from the Fraternity, Members of IFLMEA, Stake-holders and Partners from the Industry, Ladies & Gentlemen. I stand before you today to deliver the Chairman's speech at the 41 st Annual General Body Meeting of IFLMEA.

I quote Dr Mike Redwood, also known to many of us as Michael from UK and his close association with International Leather Maker, Leather Naturally and the World of Leather: He says, “Materials such as leather need to move with the times to stay relevant. These include technology, innovation, demographics, fashion, lifestyle and consumer behaviour as new generations advance in a world, unrecognizable to their grandparents.

What can be done with creativity in product and positioning to accelerate it?

For the Industrial Revolution, it was performance that mattered while, for the Renaissance, beauty and elegance were essential. In Roman times, both were important. We should never forget the way in which the Renaissance brought material thinking to fore, working gold, silver, silks, velvets, brocades and others like leather. We are beginning to recognise leather was equally important and even more enduring.

Leather can now be widely replaced by alternate materials, but its longevity and sustainability mean that tanners can look at every corner where replacements exist to seek out their failings. These are many and should be targeted with perfectly fitting leather products and highly focussed marketing.

The leather industry can only boom based entirely on demand.

The Consumer should look out for one quality leather item, be it a garment, bag or pair of shoes to buy. Products that we know have the quality and design that we will want to care for and use for a very long time. That way, we will feel better every time we use them and help to slow a damaging consumer trend.” Unquote.

I was looking forward to inviting Dr Mike Redwood to this AGM. He has just undergone a hip replacement surgery and is not able to travel for some time. But, IFLMEA in co-operation with you hope that we can get Michael to speak to us in October or in November this year.

I recently read the recently published 2024 Tanner Business Confidence Survey by ILM and is states that during 2023, when tanners were asked which trade shows they exhibited at during the past year, many of the various options were below 10% but the percentages have increased significantly in this year's survey.

APLF Hong Kong (57%) and Lineapelle/ Simac Tanning Tech (56%) were the leading results, as expected, but 35% said they had exhibited at the India International Leather Fair (IILF) and more than 20% included the ACLE, Anpic and Premiere Vision Leather.

Meanwhile, 76% of the survey respondents said that they would exhibit at or visit an international trade show or live industry events before the end of 2024, up from 63% last year.

Driving this trend, a huge 92% majority said they would do the same in 2025, showing that trade shows may finally be back to pre-pandemic form after a long recovery period.

All eyes will be on the ACLE, Lineapelle and Simac Tanning Tech events left in the 2024 calendar to gauge the direction of the industry through the end of this year and into the next.

LINEAPELLE during 17-19 September 2024 has paved the way for Members of IFLMEA to gear up with new developments in leathers and colours for the Autumn Winter 25/26 season. As Chairman, IFLMEA, I take this opportunity to wish every Exhibitor and Visitor from India, every success in your endeavours. LINEAPELLE, I must reiterate is the most important international exhibition dedicated to leather and a test bed for our future businesses.

As per officially notified DGCI&S monthly export data, brought to us by the Council for Leather Exports, the export of Leather, Leather Products and Footwear for the period April-June 2024-25 touched US$ 1152.27 million as against the performance of US$ 1200.93 million in April-June 2023-24, recording a decline of -4.05%. In rupee terms, the export touched Rs 96130.34 million in April-June 2024-25 as against Rs. 98724.55 million in April-June 2023-24, registering a decline of -2.63%. Finished Leather has a mere 9.75% share in the total exports' basket from our country.

During our visits to the major Sports Shoe Manufacturers factory with Team CLE, we witnessed that nearly 70% of the material used is Leather. This means that Leather is being used in Sports Shoes. The question remains “Who is supplying this, Leather? If not the I ndian Tanner.”

The earlier we find answers, the better it would be for our growth and sustainability.

Let this 41 st AGM pave the way for a few new endeavours and these include:

•  Panel Discussion on “Innovative Technologies and Sustainability” &
•  Presentation of Special Awards to Outstanding Tanneries and CETP

IFLMEA will present New & Innovative Technologies for Tanning Sector:

Three talks have been lined up for this evening:

•  ‘Importance of chemical saving during the finishing process,' by Mr Guido Frizzarin;
•  ‘DyTan Tanning which is a sustainable approach to traditional leather tanning,' by Mr SK Sabapathy, and
•  ‘Sustainable Leather Production with Sferes™ Technology,' by Mr SP Velan.

IFLMEA will present “Special Awards” to Outstanding Tanneries and CETP during Year 2023-24:

Witness the recipients of the Award Winners in the categories:

Largest Exporter of Finished Leathers to M/s. PRARA LEATHERS Pvt. Ltd.

Tannery with Greener Technology toM/s. KKSK TANNING Co. Pvt. Ltd.

Emerging Entrepreneur/s to M/s. FLAMINGO SSI and to M/s. D2 FOILS

Most Energy Efficient Tannery to M/s. JAHAN LEATHER EXPORTS

Best Common Effluent Treatment Plant (C.E.T.P) to M/s. PALLAVARAM TANNERS EFFLUENT INDUSTRIAL TREATMENT Co. Pvt. Ltd.

Acknowledgement of Support to IFLMEA:

•  The Government of India through the Council for Leather Exports (CLE) is in every way supporting our efforts.
•  The Council for Leather Exports is taking our problems to the Government and I would like to call for a unified voice on this. United we stand.
•  Institutions like CSIR-CLRI, FDDI, NIFT, NID, CFTI, CPT are our pillars of strength and I wish to express my gratitude to all the Directors of the Institutions for your support to us.

•  Thank You Team ITPO for enabling our outreach through successive Indian International Leather Fairs.
•  Thank You to the President, AISHTMA; President, ISF; Regional Chairman, CLE (Southern Region); President, SISMA; The Executive Director, CLE; President, CIFI, President, IFCOMA; President, AFCAMMI for our many collaborative efforts and joining hands in the interests of our Industry and our Nation.
•  To all the Leather Chemical Manufacturers in our Industry for bringing us newer technologies with your chemicals.
•  Thank You to Dr Mike Redwood and to International Leather Maker for inspiring me.

Last but not the least, I wish to thank my Vice Chairman, the Honorary Secretary, and the Treasurer for their support. Mr PK Aslam Basha, Executive Secretary and his colleague Mr Liyakath; I remain thankful to you for your hard work.

I concluding stating that “GOOD LEATHER HAS A SOUL, IT TELLS STORIES AND BECOMES PART OF YOU OVER TIME.”

Mr Md Sadiq moderated the sessions covering Panel Discussion, Expert Talk and the Awards Ceremony. He was invited by Mr Md Jahan, Honorary Secretary to take over and conduct the sessions:

This 41st AGM of IFLMEA has paved the way for many new endeavours and the next one is a Panel Discussion on “Innovative Technologies and Sustainability”

Three talks have been lined up for this evening:

1. ‘DyTan Tanning which is a sustainable approach to traditional leather tanning,' by Mr SK Sabapathy, and
2. ‘Sustainable Leather Production with Sferes™ Technology,' by Mr SP Velan.
3. ‘Importance of chemical saving during the finishing process,' by Mr Guido Frizzarin

Technical presentations:

Saba Group is one of the leading indenting agent and distributors of Leather Manufacturing and Footwear Chemicals. SABA Group is trading and manufacturing organization with nearly four decades of years of experience representing Multi-National Companies from Europe and China.

Their business partners are: Trumpler, Germany; Henkel, Germany; ACI, Italy; Pielcolor-Stahl, Spain; Quinn Italianasrl, Italy & T&J, China.

The next speaker wasMr Guido Frizzarin of EL.PA Service spoke on the importance of chemical saving during the finishing process with a deep explanation about the advantages of a proper electronic, low pressure spraying system and distributor, the combination of these 3 technologies are able to reduce dramatically the chemical wastage until 30 / 40% compared with a conventional spraying, including the possibility of a full tracking about the production process.

PANEL DISCUSSION

Mr Shafeeq Ahmed and Dr KJ Sreeram led the panel discussion.

Mr KR Vijayan, Chairman and Mr Md Jahan invited:

•  Dr M Rafeeque Ahmed, President, AISHTMA

•  Mr Panaruna Aqeel, President, ISF

•  Mr M Abdul Wahab, Regional Chairman (South), CLE

•  Mr Habib Hussain, Former Chairman, CLE

To join the dais and present their views on the ‘WAY FORWARD' for the Indian Finished Leather Industry.

They were joined on the dais by Mr KR Vijayan, Chairman, IFLMEA; Mr Ateequr Rahman, Vice Chairman, IFLMEA; Mr Md Jahan, Honorary Secretary, IFLMEA and Mr Salmaan Parpia, Treasurer, IFLMEA

Dr M Rafeeque Ahmed, President, AISHTMA

In the last three years, the Tanning Industry has weakened! In the sense of ‘financial.' Financially, they are not the same as they used to be! If you take the small, the medium or the large tannery; we must give a solution to see what kind of reform we can give to the Industry. What kind of profitable results we can give. As much as possible, less of hardware, less investment; but bring in more work with what is running now. Maybe, a little bit of change in the process, savings and everything. When we do this, it will reach out to a greater number of tanneries. In fact, if you allow me to use a very high-cost intervention to make it cheaper; there are few people who can invest that high cost. “Investment to make a good production.” – only a healthy, cash-rich company can do that. This will not be spread across the country. AS AISHTMA President, I have requested members to see that where the investment is least, adjustments are least: production adjustment/ process adjustment – can be able to produce profitable outcome of leather. This is my view!

Production has reduced to 40% today. By virtue of reducing, the overhead has gone up in the Tanneries and they have to work with 40% production and 100% overheads and this is not a good way for cash flow. How to increase our installed capacity? Or is there any other way of operations? – merging companies or working together, 2-3 companies. New thinking must come! Smaller companies can merge, reduce overhead and make it more profitable. New technologies can also be adopted. These kinds of interventions would help 70-80% of the outreach. If we are talking about very high technology, very high investment – yes, can be done. But, how many? Only a few can do that. We must try to change the whole Industry's feelings – the bad feeling, the feeling of depression should come out. And say, “Whatever I produce, I must produce challenge one's self that I can sell!” He advised Mr Vijayan and Mr Jahan to sit down and look at a new mode: Like Vaniyambadi; there are many small tanneries that can work together and work profitably. Even in Ambur, this can be done. So, I feel, I am not talking about ‘Technology,' I am talking about making it workable for the Tanneries in this situation. The power rates are going to go up very high, labour costs are expected to jump. So, we have to see how effective we can become.

ASIAN LEATHER SUMMIT

Dr M Rafeeque Ahmed announced that AISHTMA along with other associations is desirous of organizing an ASIAN LEATHER SUMMIT this year, most probably in Colombo; where India, Bangladesh, Pakistan and even Indonesia can participate to discuss the ‘FUTURE OF LEATHER.' We are working on the budget and are contacting the Tannery Associations in the other regions. Bangladesh and Pakistan have agreed, he said, Dr Rafeeque Ahmed also invited the Chemical Manufacturers to join and sponsor certain events. He added that, TODAY, we are not aware of what is happening around us and this, he added, would be a great opportunity for us. WE are the biggest LIGHT LEATHER TANNERS (India, Pakistan & Bangladesh apart from some African countries) and this would be a great opportunity, he said in conclusion of his expert advice.

Mr Aqeel Panaruna, President, Indian Shoe Federation

He thanked Chairman, IFLMEA for organizing this wonderful meeting. In his opening remakes, Mr Panaruna said that “most important of all is costs saving.” He recalled the origin and establishment of the IFLMEA at the office of Dr M Rafeeque Ahmed and Late Rajagopal Naidu of Jai Bharat Tanners was nominated as its founding Chairman. Mr Panaruna added that his association with IFLMEA has been from the very formative days. Since then, said Mr Panaruna, IFLMEA has been progressing well.

If you want to increase profitability today; unless you upgrade yourself, the profitability will not increase. He cited an example by stating that the company ECCO would change its tanning / shoe making machines every three years. In those three years, ECCO would take the maximum value of the machines, calculate the depreciation and get rid of those machines and replace them with machines with newer technologies. That's how successful tanneries are working overseas, he said. Are we able to do that in our Tanneries, he questioned? Here, we are trying to manage with the old machines and we expect the profitability to come – it will not come, he emphasised. He gave another example. Mr Panaruna said that he was recently returning back from a U.S. trip and happened to read a FORTUNE magazine in flight- an article on how Samsung and Apple do their developments. Every year, they bring a new product into the Industry; if one does not do, the other will perish. So, if you want to flourish in business, other than upgradation and technical development, need to focus on cost saving. Cost Saving is so important, he stressed.

I was so impressed by the technical presentations today. Every minute detail is a saving; plus, the yield that we get from the leathers is high. Even in footwear if we buy an automatic machine, one can save a lot of materials, for example; threads; which otherwise is mostly wasted. Likewise, where you have a lot of stitches and you are using manpower; manpower cost is going to increase. Today, why are we expensive when compared to Vietnam; it is because their productivity is high, their efficiency is high.

In the same context for the Tanneries, unless you modernise, you will not be able to achieve the efficiency nor the productivity not the profits!

Mr M Abdul Wahab, Regional Chairman (South), Council for Leather Exports

He thanked Mr KR Vijayan, Chairman and Mr Md Jahan, Honorary Secretary for the wonderful evening and for the technical presentations.

I personally feel, he said: “The most profitable business, if done rightly, is the Tannery business.” This is my take! He added. We have tanneries that are doing millions every month; but we know what we are doing and what opportunities are there in cost saving. My thinking here is, we have to find what is suitable for the Indian condition. In that sense, multiple SKU's of articles, multiple colours; still we need to do in the best and most efficient way. This way, we can, in the long term, sustain the tannery business. Multiple articles of sheep, cow, side, buffalo, everything. Multiple animals, multiple colours and we still need to do in the most efficient way – it is still possible. We just need to change our way of working. This is just one point.

Another point is quoting what Mr Vijayan said earlier in the day at the AISHTMA meeting that ‘Designers of brands are selecting the articles.' As you all know, I started going to LINEAPELLE some 15 years back. At that time, it was only a Leather Show. In the last decade, Product Teams and designers from brands are also visiting. Even from our own Team, we have been sending our Product Development colleagues to interact with the designers.

What we are missing is that Italian Tanneries are having select shows – LINEAPELLE in New York and in the U.K. Probably, we need to come up with a new thinking like that: Organize IFLMEA Shows and invite brands there. Develop different articles for shoes and different articles for handbags. So, we will have articles, colours and some products made so that we can demonstrate to the global brands designers what can be done. WE may look at funding from MAIS to do this which would be eventually helpful to all!

Meeting with Chief Secretary of Tamil Nadu, Mr Muruganandam

Mr Panaruna Aqeel prompted Mr Wahab to de-brief about the meeting head with the Chief Secretary of Tamil Nadu earlier in the day. On the subject of Common Effluent Treatment Plant, the government, thanks to the initiatives taken by Mr Israr Ahmed, President, FIEO is willing to subsidise the procurement of polypropylene drums with the Qualus technology and the number of tanneries that would be interested. The other point was that the government is keen to help and support three Hubs: Ranipet, Ambur and one more. The State government is keen to know what is needed by the Industry. Mr Wahab added that the government realises that our Industry is supporting women employment and creating job opportunities.

Me Aqeel Panaruna added stating that he too was present at the meeting along with Mr Wahab and Mr Senthil and that they informed that the support sought was for the micro and small people. The Sate Government desires that the Industry submits a budget outlay for their needs. The State support would be in addition to the support from the Centre. Mr R Selvam, IAS, Executive Director, CLE would submit the requirements for a composite amount of Rs 80 crores towards polypropylene drums and the CETP. Also, on the subject of labour costs, a request has been made to reduce the labour costs by 4% because of the economic situation of the business. A very constructive meeting held, said Mr Panaruna.

PRESENTATION OF IFLMEA AWARDS

For the First time, said Md Sadiq; IFLMEA has instituted awards to its members to encourage exports and quality manufacturing. IFLMEA will present “Special Awards” to Outstanding Tanneries and CETP during Year 2023-24:

There are six awards that were presented.

• Largest Exporter of Finished Leathers was awarded to M/s. PRARA LEATHERS Pvt. Ltd.

This award recognizes the company that has demonstrated exceptional performance in exporting finished leathers, setting new benchmarks in global trade for the Indian leather industry. Their contribution to expanding India's footprint in international markets exemplifies leadership in quality and scale. Mr. Nanda Kishore Dhanekula, Director received the Award.

• Tannery with Greener Technology was awarded to M/s. KKSK TANNING Co. Pvt. Ltd.

This award honours the tannery that has pioneered the adoption of environmentally sustainable practices and technologies. M/s. KKSK TANNING Co. Pvt. Ltd. has set a precedent in the industry by significantly reducing its ecological impact while maintaining excellence in leather production. Mr. K.K.S.K. Rafik, Managing Director received the award.

• Emerging Entrepreneur/s in Finished Leather was awarded to M/s. FLAMINGO SSI

This award celebrates the entrepreneurial spirit of new entrants in the leather industry who have shown remarkable innovation, resilience, and growth. M/s. FLAMINGO SSI has made significant strides in establishing their presence and driving forward the industry with fresh perspectives and dynamic business models. Mr. Abdul Razack Khan, Managing Director received the award.

• Emerging Entrepreneur/s in FOILS for Leather was awarded to M/s. D2 FOILS

This award celebrates the entrepreneurial spirit of new entrants in the foils for the leather industry who have shown remarkable innovation, resilience, and growth. M/s. D2 FOILS have made significant strides in establishing their presence and driving forward the industry with fresh perspectives and dynamic business models. Mr. K. Dawood Ahmed, Managing Director received the award.

• Most Energy Efficient Tannery was awarded to M/s. JAHAN LEATHER EXPORTS

This award acknowledges the tannery that has excelled in optimizing energy usage, demonstrating a strong commitment to sustainable production. M/s. JAHAN LEATHER EXPORTS has implemented cutting-edge energy-saving techniques that not only benefit the environment but also enhance operational efficiency. Mr. G. Shahjahan, Managing Director received the award.

• Best Common Effluent Treatment Plant (C.E.T.P) was awarded to M/s. PALLAVARAM TANNERS EFFLUENT INDUSTRIAL TREATMENT Co. Pvt. Ltd.

This award recognizes the CETP that has set a high standard in treating industrial effluents, safeguarding environmental health, and ensuring compliance with regulatory norms. M/s. PALLAVARAM TANNERS has played a critical role in mitigating pollution and promoting sustainable practices within the leather industry.Mr. Mohamed Najib, Managing Director received the award.

VOTE OF THANKS

The meeting thus concluded.