The leather industry in Panapakkam, located in Tamil Nadu’s Ranipet district, is poised for significant growth due to the establishment of the Mega Leather, Footwear, and Accessories Cluster (MLFAC) Industrial Park. Announced in July 2022, this initiative aims to strengthen Tamil Nadu’s position as a leading hub for leather and footwear manufacturing and exports.
Key Features of the MLFAC Industrial Park:
- Strategic Location: Situated in Panapakkam, the park benefits from its proximity to existing leather clusters in Ambur, Vaniyambadi, and Vellore, fostering synergy among industries. Its location, approximately 100 kilometers from Chennai, provides access to major ports and airports, essential for export-oriented businesses.
- Infrastructure and Investment: Spanning 250 acres, the park is being developed with an investment of ₹400 crore. It will feature state-of-the-art facilities, including well-laid roads, reliable power supply, water resources, and waste management systems, to support diverse industrial operations.
- Sectoral Focus: Dedicated to the leather, footwear, and accessories sectors, the park aims to attract both domestic and international manufacturers. It encourages the establishment of ancillary units producing components like soles, heels, and synthetic materials, reducing dependency on imports.
- Economic Impact: The project is projected to generate employment opportunities for over 20,000 individuals, with a significant focus on empowering women. It is expected to enhance the region’s economic development by attracting investments and boosting exports.
- Environmental Considerations: There is an emphasis on sustainable industrial practices, including effluent treatment and waste management, to minimize environmental impact.
The Tamil Nadu government has also introduced the Tamil Nadu Footwear and Leather Products Policy 2022, aiming to attract ₹20,000 crore in investments in the leather sector by 2025 and create employment opportunities for 2 lakh people. This policy offers incentives and support for industries setting up operations within the park, fostering a conducive environment for business growth.
In summary, the establishment of the MLFAC Industrial Park in Panapakkam represents a strategic effort by the Tamil Nadu government to strengthen its position in the leather and footwear sectors. With robust infrastructure, a strategic location, and supportive policies, the park is poised to become a pivotal center for manufacturing and export, driving economic growth and providing substantial employment opportunities in the region.
