Home Leather Crafts Development Company (LCDC) - Multan

Leather Crafts Development Company (LCDC) - Multan

PROJECT OBJECTIVES

  • Add value, on modern footings, in the traditional craftsmanship of leather products sector in Southern Punjab.
  • Enhancing competitiveness, efficiency, quality and productivity of leather products sector in Southern Punjab.
  • Economic empowerment of marginalized sections of society including women, and landless village artisans, through skill development and provision of opportunities for income generation.
  • Infuse gender empowerment in the region by employing at least 50% women in the workforce.
  • Produce skilled labor initially for the project itself and later on for the area.
  • Enable the local leather products industry to enter international markets.

BRIEF PROFILE OF SECTOR

Total world trade in leather sector is estimated at US$100 billion out of which Pakistan has a share of only 1.20%. During FY 2007—08 leather sectors contributed US$ 1.2 billion towards Pakistani’s exports out of which leather gloves exports were US$ 149 million (approx 12.50 %). Pakistan stands at an amicable 3rd position in the world exports of leather gloves. According to international trade data analysis of CY 2005, out of total world exports of US$ 1.66 billion, Pakistan’s share was US$ 198.30 million claiming share of 11.95 %. Countries occupying 1st and 2nd position are China and Hong Kong with shares of 51.86% & 16.59% respectively. Leather tanning and products sector has been present in Multan for quite some time. Today there are more than 60 tanneries in the city out of which around 12—15 tanneries make garments/gloves grade leather. These tanneries mostly make wet blue and finished leather. Wet blue is sold in national market where as finished leather is mostly exported. There are only a handful units (3—4) engaged in stitching of leather bags, garments & gloves for national market and mostly work on seasonal/ order basis. Due to presence of dairy and livestock in the southern Punjab and its significant expansion in the recent years, there is abundant availability of hides and skins for further value addition. This situation places Multan at a competitive and conducive place to sow the seeds of leather industrial gloves manufacturing. It will also help Multan to emerge as a supplier of leather products on international trade map.

OVERVIEW OF THE PROJECT

Through this project, local heritage/crafts/village products for economic activity in the under developed regions of Southern Punjab will be developed. To achieve the objective, around 10 centers will be established to build capacity of rural communities for training and manufacturing of leather gloves and other products. The project plans to have a joint venture between Government of Pakistan and Private Sector by sharing equity and management. The private sector will establish and maintain minimum 10 field units for making of products and with one headquarter for management, training and marketing in Multan. The project aims to provide around 1,056 direct employment opportunities to women and men. Workers would be trained in the areas of Manufacturing of Leather Products and Cutting / Pattern Making.

BENEFITS TO THE SECTOR/SMEs

  • The project will have a dedicated marketing department to establish contacts primarily with international and also with domestic buyers. It would also help provide input regarding international market trends, materials, packaging, etc. It would chalk out a marketing strategy supported by annual target oriented plans.
  • The in-house display center will exhibit products manufactured by the craftsman working in field units. It would serve as one stop shop for international and domestic buyers.
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