Leather Industry Segment
The major leather production hub of Bangladesh has been in Dhaka, moved from Hazaribagh to the industrial park in Savar. The Hazaribagh area in Dhaka was primarily the central hub of tanneries with 220 tanneries operating for processing raw hide into processed leather. Due to environmental concerns, based on High Court order, the government removed power and gas connections of tanneries in Hazaribagh and relocated the tanneries to the purpose-built Savar Industrial leather park. The Savar Industrial Park has the capacity of 205 industrial plots under six categories. As of now, 155 factories have shifted to the park. (1)
Besides Dhaka, Many tanneries of Chittagong which once made brisk business and contributed to the economy of the country have now been compelled to wind up their businesses. According to the tanners, once there were a total of 18 tanneries in Chittagong before 1971. A er the liberation of Bangladesh, the tanneries witnessed a boom and the number rose to 21. Of the 21 leather manufacturing industries, only two enterprises – Madina Tannery and Ri Leather Ltd (now closed for environmental issue) managed to survive in Chittagong. (2)
And there is a tannery called SAF Leather Ltd, the biggest located in Jessore District, Khulna Division.
Apart of Tannery, currently some 600 SMEs o er peripheral services to the sector in the area. (3)
Additionally, in order to strengthen the sector and bossing the export earnings, Bangladesh Small and Cottage Industries Corporation (BSCIC) has taken an initiative to set up three footwear and leather goods industrial parks in the country. The parks are projected to be set up at Puthia in Rajshahi, adjacent area of Savar tannery industrial estate and Mirersarai Industrial Park in Chattogram. (4)
Footwear and Leather Goods Industry Segment
As Bangladesh footwear and leather goods industry primarily established as leather industry bi-product, the major footwear and leather goods production hub of Bangladesh also located in Dhaka. According to Footwear and leather goods exporter list published by Bangladesh Export Promotion Bureau, Out of 178 exporters, 166 factories (93% in share) of footwear and leather goods industry are located in Dhaka and Chattogram Division. Besides Dhaka, there are 4 factories location in Mymensingh, 3 in Khulna, 2 in Barishal and each for Rajshahi, Rangpur and Sylhet. (5)
Apart of export industry location, most of the Bangladeshi leather goods manufacturers are small to medium-sized enterprises. These SMEs work-force range is 30-120 in most case. They are in di erent areas in Bangladesh, there are 2 cluasters well recognaised. One is Bhairab and Kishoreganj and another Old Dhaka: Kotuali Thana, Siddik Bazar, Bokshi Bazar, Kamrangirchar
Division Wise
In Dhaka Division, Most of the factories are in Savar Upazila of Dhaka District and Gazipur District. Out of 141 listed footwear and leather goods factories, 98 factory located in this area. All the 155 tanneries (expect Apex Footwear Tannery Unit) are in Savar Upazila.
In Dhaka District, most of the factories are in Savar Upazila. Tanneries are in BSCIC Tannery Industrial Estate, Hemayetpur. There are some footwear and leather goods factory also in Hemayetpur Area. Others are in Asulina, Ziraboo, Baipail Union.
In Chattagram Division, Most of the factories are in Chattogram and Kumilla District. Factories are mainly located in Chattogram EPZ and Kumilla EPZ. Youngone Group invested shoe factory in Korean EPZ Anwara, Chattorgram.
About Bangladesh Leather Indutry:
Bangladesh has a long established tanning industry which produces around 2-3% of the world’s leather from a ready supply of raw materials. The country is therefore an established and attractive location to source and outsource the manufacture of finished leather products. The leather industry is ideally suited to Bangladesh with its abundance of labor and natural resources at internationally competitive rates.
Sector Highlights
Flourishing in this sector are finished leather and leather
goods.
Abundant, low-cost labor – ideal for labor intensive
industry.
Good quality domestic supply of raw materials, as
by-products of the large livestock industry.
Government support in the form of tax holidays,
duty-free imports of raw materials and machinery for
the export-oriented leather market, export incentives.
Tari and quota-free access to major markets such as
the EU.
Source link:
1. 3-year project may roll into 17 years!, The Business
Standard, 2019. Accessible at:
https://tbsnews.net/economy/industry/3-year-project-may-roll-17-years
2. Ctg tanneries in doldrums, The Independent. Accessible at:
https://www.theindependentbd.com/post/11063
3. Impact of COVID-19 Pandemic on Leather and Footwear
SMEs. Accessible at:
https://www.lightcastlebd.com/insights/2020/10/the-impact-of-covid-19-pandemic-on-leather-and-footwear-smes
4. Three leather goods industrial parks to be set up, The
Independent. Accessible at: https://www.theindependentbd.com/post/232042
5. Exporters Database: Exporter List (Goods). Leather and
Leather Goods Exporters. Accessible at: http://epb.gov-
.bd/site/files/aca7df47-0d5b-4ebb-84eb-42790727acb0/Exporter-List-(Good
s)
