Panapakkam, located in Tamil Nadu, is emerging as a significant contributor to India’s leather industry, mainly through the development of the Mega Leather, Footwear, and Accessories Cluster (MLFAC) Industrial Park. This initiative is poised to enhance India’s position in the global leather market.
India’s Position in the Global Leather Market:
- Export Rankings: India is the fourth-largest exporter of leather goods worldwide. In the fiscal year 2023-24, the country’s leather, footwear, and related product exports reached $4.68 billion. Notably, leather and non-leather footwear exports constitute about 47% of the total.
Panapakkam’s Contributions:
- MLFAC Industrial Park: The establishment of the MLFAC Industrial Park in Panapakkam is a strategic move to bolster Tamil Nadu’s leather and footwear manufacturing capabilities. Spanning 250 acres and investing ₹400 crore, the park aims to position Tamil Nadu as a leading hub for leather and footwear manufacturing and exports.
- Employment Generation: The park is expected to create approximately 20,000 jobs, significantly enhancing local employment and contributing to the region’s economic development.
- Export Potential: By attracting domestic and international manufacturers, the park aims to increase the production and export of leather goods, thereby augmenting India’s share in the global leather market.
Strategic Advantages:
- Proximity to Chennai: Panapakkam’s location, approximately 100 kilometers from Chennai, provides access to major ports and airports, facilitating efficient export operations.
- Government Support: The Tamil Nadu government’s policies, such as the Tamil Nadu Footwear and Leather Products Policy 2022, aim to attract ₹20,000 crore in investments by 2025 and create employment opportunities for 200,000 people, further strengthening the leather sector.
- Panapakkam’s development, mainly through the MLFAC Industrial Park, is set to play a pivotal role in enhancing India’s global leather market share by boosting production capacities, generating employment, and facilitating exports.
