Synthetic leather industry may touch Rs 9,000 crore mark in next 5 years
Currently, the market size of the sector stood at about Rs 4,500 crore, Mayur Uniquoters, the country's leading synthetic leather manufacturer, Chairman & Managing Director Suresh Kumar Poddar told PTI.
Poddar said the artificial leather is substitute for natural leather and its fine designing and texture is attracting people's attention.
"The industry is growing very fast in the country. I think, the market size of the synthetic leather industry must double in the next five years. The sector's growth is being driven by the increasing buying power of people and growing consumption," Poddar said.
He said artificial leather is used in every sector that includes automobile, footwear, home furnishing and lifestyle accessories.
Talking about the problems being faced by the sector in India, he said China is dumping its cheap products in the country and urged the government to look into the issue to protect the interest of domestic players.
Further, commenting about Mayur Uniquoters' performance Poddar said his Bombay Stock Exchange listed company is expected to register a flat growth in the second half of this fiscal.
"During April-September period, the company has registered a net profit of Rs 20.4 crore. Given the current global conditions, we are expecting that we should be able to do the same in the next half of the fiscal. Offtake in the market is down," he said.
On the firm's export performance, he said given the global demand slowdown, the company is expecting a moderate growth.
"Our major export destinations are the US, Russia, Germany and Middle east countries. 20 per cent of our total revenue comes from America. Sector wise, the company gets maximum revenue from footwear followed by automobile and lifestyle accessories," he added.
The company, which was recently listed in the Forbes 200 top Asian firms, has customers including Maruti, Honda, Mahindra and Mahindra, Tata Motors, Ford US, Bata and Liberty.