Leather Industry - A Prominent Contributor in State's Economy

Leather Industry traditionally occupies a place of prominence in the State's economy, in view of its massive potential for employment, growth and exports. The state has one of the largest livestock populations in the country, which provides a strong raw material base required for the industry. Leather & Leather goods industry has performed exceptionally well as compared to all India figures and of other regions.

The number of leather and leather products industries in the state are to the tune of 11,500 of which Kanpur and Agra are the two famous production centres. The footwear sector is a very significant segment of the leather industry in Uttar Pradesh.

Leather Industries in UP have got maximum account of SMEs & MSMEs employing nearly 3,00,000 workers mostly belonging to the weaker section of the society and coming from rural areas. 

U.P. is now the second largest producer of footwear after Tamil Nadu. Agra is the biggest centre for shoe manufacturing in the country. Kanpur is the main producer of saddlery products. It is a prominent centre for leather processing. Kanpur tanneries specialize in processing of raw hides into heavy leather (sole, harness and industrial leather).  The prominent leather products manufactured in Kanpur include footwear components (including shoes and sandals), leather garments, industrial gloves, saddlery, belts and bags. The prominent leather shoe brands of Kanpur and Agra are Red Tape, Red Chief, Allen Cooper, Mardigrass, Zara, Topshop, Metro,  and Kickers. More than two lakh people are either directly or indirectly involved in the manufacturing of leather products in the city.

Noida has also emerged as a major centre especially for leather footwear and leather garments. The State Footwear Industry is provided with institutional infrastructure support through premier institution of Footwear Design & Development Institute, Noida in the areas of technological and Human Resource Development. The main production centres for leather and leather products are Kanpur, Unnao, Agra and Noida.

The state has already developed a Leather Technological Park at Banther, Kanpur for setting up tanneries and leather goods units. The Central Government also proposes to establish one mega leather cluster near Kanpur.

The availability of abundant raw material, large market size and the opportunity to cater to domestic/ global markets makes Uttar Pradesh an attractive destination for investment in the sector.

Export Figures

Sl.No.	Year	Export value (Rs. in crores)
1.	2006-07	3205.68
2.	2007-08	4374.33
3.	2008-09	4561.61
4.	2009-10	4619.22
5.	2010-11	5300.00

  Source: Council of Leather Export Kanpur

Export from U.P. is around 28% of All India Export of Leather and Leather Products. The product wise export of leather and leather goods shown as per following chart:

Export Award Winners from U.P. during 2008-09 and 2009-10

(Source: Council of Leather Export, Kanpur)

Kanpur

1.      Super House Ltd.                                              2.      Mirza International Ltd.

3.      Model Tanners India Pvt. Ltd.                           4.      Everest Tannery Pvt. Ltd.

5.      Global Export                                                    6.      Lex International Pvt. Ltd.

7.      Eastern Exports                                                 8.      Aravind Footwear Pvt. Ltd.

9.      Kings International Ltd.                                     10.  Crescent Tanners Pvt. Ltd.

11.  Inyati Footwear Ltd.                                           12.  Grand International

13.  Samson's International                                         14.  Pacific Leather

15.  Allied Exims                                                        16.  Mariya Exports International

17.  Rahman Industries Ltd

Agra

1.      KAF Footwear Industries

2.      Sheetal Footwear Exports

Noida

1.      Unisol India Pvt. Ltd

2.      Tryshoera India Pvt. Ltd

Irshad Mirza, Padam Shree-2010

A.K. Pandey, Sr. Manager (Tech.)

Central Institute for Subtropical Horticulture, Lucknow

The Central Institute for Subtropical Horticulture (CISH) under the aegis of ICAR is serving the nation by undertaking basic and strategic research to enhance productivity and develop value chain for major and minor subtropical fruits. Institute is also a national germplasm repository of subtropical fruit crops. The Institute has two experimental farms, one at Rehmankhera approximately 25 km away from the city and the other at Raebareli (R.B.) Road, in the city of Lucknow. To meet the challenges in emerging areas on subtropical fruits, Institute has modern nursery facilities, well-established orchards and fully equipped laboratories.  A hostel-cum-guest house is situated at R.B. Road Campus for accommodating farmers, trainees and experts. The institute is maintaining linkages with various national and international organizations in areas of research, development, education, training and germplasm exchange and the Institute has MoU with universities and other Institutes also. Institute has also been recognized by IGNOU, New Delhi as study centre for offering one year Diploma Course on value added products of fruits and vegetables and organic farming.

Institute has world’s richest field gene bank collection of mango (727). Besides, it has germplasm collection of   guava (114), papaya (32) and other minor and underutilized fruits. Ambika and Arunika are two mango hybrids released by the Institute possessing attractive peel colour, regular bearing with potential for domestic and export markets. Lalit and Shweta are selections of guava with good processing potential and high yields. Lalit variety is particularly famous for pink pulp yielding pink coloured nectar. In bael superior selections B1  and B2 are important varieties with higher yields coupled with  low seed and fibre content. Recently CISH has identified a seedless Jamun selection which has immense table and processing value.

Technologies developed

Institute has demonstrated application of rejuvenation technology for reviving the production for senile and old mango orchards. This technology has made impressive inroads amongst the orchardist of Bihar, Jharkhand and has also been identified by National Horticulture Mission for its promotion amongst orchardists.  Yield enhancement in range of 70 to 90 per cent over the un-pruned trees is recorded after second year of rejuvenation in case of senile orchards of guava and aonla. The institute has developed the concept of meadow orcharding in guava wherein 5000 plants ha^-1 (1.0m x 2.0m) are accommodated and managed judiciously with regular topping and hedging yielding massive productivity. Year round production of guava plants is feasible now due to wedge grafting technique perfected at CISH. Round the year production of elite planting material of mandate crops is feasible with modern nursery facilities at CISH. Integrated pest management of mealy bug and hoppers on mango for pest control and Methyl eugenol based ecofriendly management of fruit fly in mango and guava orchards is being promoted. Forecasting model for the prediction of powdery mildew and hot water treatment for control of post harvest diseases of mango are plant protection technologies offered to orchardists. Protocol for post harvest management of mango along with uniform ripening of mango with ethrel is being routinely followed, which has immediate financial benefits for the growers and traders. Composting of mango peel and utilization of mango peel for pectinase production are new endevours. Amylase production from mango kernel and production of baker’s yeast from mango stone has immense potential.

Products developed

Institute has developed technology for many fruit based products such as beverages from blends of mango-pineapple (1:1), mango-pear (any ratio) and mango-papaya (2:1), raw mango squash (Panna concentrate).Oil less pickle of mango, Sweet papaya chutney, good quality vinegar from mango peel, guava slices from cv. Lalit, Sweetened and brined (salted) aonla segments, aonla and mango dietary fibre enriched biscuits, fermented beverages viz. aonla cider, guava cider, raw mango cider, mahua wine, bael wine, mango wine and mango peel vinegar.

Tools and machineries developed

Many tools and machinery has been developed by the institute such as a prototype of bund former, a simple low cost mango harvester, web removing device (hand fork type), aonla de-stoning machine, cabinet type solar de-hydrator, sprayer, automatic packaging unit, CFB boxes of 2 kg capacity for packaging of mango and guava fruits.

Services offered

Institute is offering various services like scientific literature on different technologies of subtropical fruits.

Soil and leaf analysis, on the spot inspection and advisory service for the problems of subtropical fruit production, front line demonstration of Institute technologies, consultancy services to govt. and non-govt. organizations, evaluation of chemicals/ fungicides / insecticides etc, production and sale of healthy and genuine planting materials of different varieties of mango, guava, aonla and bael, production and sale of fruit products. Institute organizes gosthies, demonstrations, exhibitions, scientists-farmers interaction, radio and TV talks etc. for the benefit of end users.

H. Ravishankar, Director

Central Institute for Subtropical Horticulture

State Finances: From Crisis to Comfort

At the end of the last century the state faced a “fiscal crisis of unprecedented proportions”. In 1998 total tax revenue collection (Own Taxes) was around Rs 7000 crore and the salary expenditure, for around Sixteen Lac employees, was Rs 11000 Crore. In other words state’s own revenues were not even enough for paying salaries to state employees. However the decade that followed saw a committed effort by the state and the results are there for every one to see. Today Uttar Pradesh paints an exceptional story of fiscal transformation. The performance is so exceptional that in recent years UP emerges as one of the front runners on a number of indicators. This naturally calls for an objective assessment of UP’s Budgetary scenario.

It will be most appropriate to analyze state’s budgetary performance in the backdrop of Twelfth Finance Commission targets on six indicators, which all states are required to achieve. These indicators include Fiscal Deficit to be brought down to 3% of GSDP; Revenue deficit to be eliminated; Own tax revenues higher than 6% of GSDP; Non tax Revenues higher than 1.4% of GSDP; and Debt burden lower than 30% of GSDP. Interestingly on five of the six indicators, in 2008-09 i.e. much before the targeted timeframe, UP outperformed the targets laid down by the Twelfth Finance Commission (TFC). Debt was the only indicator where UP lagged behind the targets.

Figures ‘A1’ & ‘A2’ present a revealing interstate comparison on Revenue Deficit performance across seventeen major states. During 2004-07 (average) UP had a revenue deficit of 0.6% against the TFC target of 0%. During 2007-08, however, UP records a Revenue Deficit of (-) 2.6% (or Revenue Surplus of 2.6%). Interestingly UP ranked tenth during 2004-07, however by 2007-08 UP bettered seven major states and emerged as the third best performer in the country.

Fig ‘A1’ Revenue Deficit/ Surplus in 17 Major States in 2004-07 & 2007-08

Fig ‘A2’ Revenue Deficit/ Surplus in 17 Major States in 2008-09

On the Fiscal Deficit front too UP records a deficit of 4% during 2004-07 (average). This was 1% short of TFC target. However, in 2007-08 UP recorded Fiscal Deficit of 3% which was in conformity with the TFC targets. Figure ‘B’ presents a comparative picture of 17 Major States in the country. It is obvious that during 2004-07 UP ranked 12^th and moved to 8^th rank in 2008-09.

Fig ‘B’ Fiscal Deficit of 17 Major States

The impact of the implementation of Sixth Pay Commission recommendations along with the global meltdown compromised UP’s Fiscal Deficit which slipped to over 6% of GSDP, revenue surplus also came down significantly. However, in 2010-11 Fiscal deficit has been brought down to 3.9% and was expected to go down to around 2.9% in 2011-12. Revenue surplus was never allowed to get converted into revenue deficit irrespective of the pressures involved. And in 2011-12 it rises to over 5000 crore. This certainly is an indicator of increased fiscal consolidation and an expression of fiscal responsibility.

Equally significant is the rise in capital expenditure. In 1998, the year of fiscal crisis in UP, Capital expenditure shrank to around 8%. In other words state was left with no capacity to initiate development. By 2009-10 it rose to 18% and now in 2011-12 budget it rises to 25.7% of the total expenditure. This is a critical indicator of state’s capacity to initiate development, and suggests towards the potential of the state to move into fast growth path. The rise in social expenditure is equally significant. Education alone records a rise of 19.6% in the current budget. This ‘development space’ is substantially the outcome of responsible fiscal management. Revenue buoyancy in state taxes has been a major contributor to this fiscal performance. It need be highlighted that in 2009 revenues of government of India fell by around Rs 60000 crore but UP’s revenues rose by 17% in the same year. The story seems to continue in this budget too. State’s own revenue rises to around Rs 50000 crore which is higher than the projections made in 2008-09 by some of the international agencies.

It may be noted that after introduction of VAT tax, collections have declined in the first year after such introduction. However, in UP taxes seem to show significant buoyancy in 2008/09 and thereafter. Interestingly, Uttar Pradesh has become the first state in the country to register growth in tax collection in the first year after introduction of VAT. These are encouraging signs and augur well for the possibility of further fiscal consolidation, at least in the medium term.

Fiscal space is the pedestal on which the state weaves its effort towards development and social change. It need be noted that during the 1990s UP’s rate of growth was only 4%. In last three years the state has grown at over 7%. Rising fiscal space and increased capital expenditure have hugely contributed to this changing story. The budget indicates towards stabilising state finances, rising capital expenditures and falling deficits. This year is also significant because Government of India’s revenues, which have taken a beating, have begun to rise implying that state’s share in central taxes will also rise; The arrears burden of the sixth pay commission has also been taken care of and will not burden future state budgets. This will only improve the fiscal space further. In other words the state is development ready, and an appropriate marshalling of resources can take the state into the higher trajectory of development and social change.

 Dr Arvind Mohan

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· Arvind Mohan is an eminent economist, he teaches at Lucknow University and is Associated with a number of National and International Organizations.

If Noida is E-City, Lucknow is B-City

When India’s largest producers of gram -- Punjab and Haryana -- could no longer cultivate the crop due to degradation of soil because of excessive use of chemicals, Uttar Pradesh’s state capital came to the country’s rescue.  Bio- inoculants, a patented technology produced within the laboratories of National Botanical Research Institute (NBRI) produced dramatic results both for the growth of the plants and soil. Today, NBRI (www.nbri.res.in) has not only offered path breaking technological support for growing gram, but it is also a leader in transgenic cotton, enriched microbes for ushering organic cultivation, conserving biodiversity, biofuel crops and managing wastelands for optimizing crops.

Uttar Pradesh’s biotechnological achievements are not limited to the research work done by NBRI. For decades, the state has been an important centre of education, with well-respected universities like Aligarh Muslim University and Banaras Hindu University (BHU) in its midst. Both institutions are well-known for teaching medicine and engineering; BHU, to this day, continues to be ranked among the best universities in India (according to a recent survey of India Today magazine). The tradition of excellence continues well beyond these universities. Lucknow, for instance, is regarded as a B-class town in terms of urbanization. On the biotechnology front, though, the city is next only to Bangalore and Hyderabad. After all, which other city can boast of being home to centers-of-excellence like Central Drug Research Institute (CDRI), National Botanical Research Institute (NBRI), Indian Institute of Toxicology Research (IITR), Central Institute of Medicinal and Aromatic Plants (CIMAP) and Indian Institute of Sugarcane Research (IISR), National Bureau of Fish Genetic Resources (NBFGR) and Central Institute of Subtropical Horticulture (CISH), to name just a few.

Many drugs that India calls its own have been produced, right here on UP soil, at CDRI’s (www.cdriindia.org) own laboratories. Some examples are Centchroman (a contraceptive), Centbucridine (a new anaesthetic), Arteether and Bulaquin (both anti-malarial drugs) and so on. That’s not all. CDRI’s Gugulipid (a drug that keeps cholesterol levels under control) and Memory Sure have changed the paradigm of how Ayurvedic recipes can find place in modern medicine. There is no institute that can match CDRI’s fundamental research, while developing products that have done the nation proud.

Giant strides have been made not only in the area of drug research, but also in other areas. CIMAP has made India a Mentha country with its new varieties, aggressive technology translation and proactive rural participation to bring acres-on-acres under Mentha cultivation. That’s not all that CIMAP has given India; with Artemsin (from Artemisia annua) it will also help wipe off malaria from developing countries. In this, CDRI and CIMAP have worked together to develop the anti-malarial drug.

UP is a leader in the areas of toxicology to sugarcane research as well. IITR (earlier ITRC) (www.iitrindia.org), the only institute of Toxicology in the country had always shouldered the responsibility when India has been faced with environmental health challenges. Be it the Bhopal Gas tragedy, shortage of drinking water after floods in Orissa or outbreak of dropsy due to consumption of mustard oil adulterated with argemone oil in Delhi; through its research, IITR developed techniques for monitoring of water quality and its disinfection. With it’s path-breaking research, IITR continues to be an institute of repute in the field of toxicology research, training and testing.

Likewise, Indian Institute of Sugarcane Research (www.iisr.nic.in) has played an important role in the development of new varieties of sugarcane and their propagation. The Central Institute of Subtropical Horticulture (CISH) (www.cishlko.org) is well known for its mango research and introduction of new varieties of mango. SGPGI. (www.sgpgi.ac.in) a super specialty hospital and CSSMU (www.kgmcindia.edu) (earlier KGMC) are centres of excellence in biomedical sciences and healthcare. In a similar vein, the famous Lucknow University has been a seat of learning and human resource.

Biotech Park, Lucknow (http://www.biotechpark.org.in) was set up in a small area with the objectives of providing common facilities to start-up Biotech industries. It sought to provide support to industries for undertaking research and developmental work, apart from scaling up technologies and accelerating their commercialization. It gave an impetus to technologies developed by the research institutions in the city and state, provided critical support in human resource development, in effect, adding to Biotech-city armamentarium. The Biotech park is an archetype and exemplification of bridging the gap between science and technology and learning and entrepreneurship. The park will soon have a WHO-GMP compliant facility being setup by M/s Lifecare Innovations Pvt. Ltd, a R&D based Biotech Company, producer of fungisome for the treatment of fungal infections and Kalazaar.

In view of the above, the city was rightly declared as “Biotechnology City” on January 3, 2002 during the 89^th Annual Session of the Indian Science Congress held at Lucknow. With rapid infrastructure development, Lucknow is fast growing into a metro city. With several universities and colleges coming up in the private sector, the City is bound to become an important biotechnology hub in the Northern parts.

 

Prof. P.K.Seth

CEO,Biotech Park