Tamil Nadu's leather industry seeks infra support to boost export

As per media reports, Tamil Nadu’s leather and footwear industry has requested the State government to provide dedicated hostel facilities for women workers, capital subsidies for modernisation, and the creation of a 1,000-acre integrated leather and footwear manufacturing park.

These demands aim to assist the sector in reaching Rs 25,000 crore in exports by 2030. The proposals were presented by M. Abdul Wahab, Managing Director of KH Exports India Pvt. Ltd. and Regional Chairman of the Council for Leather Exports (Southern Region), during the Industry Leaders’ Connect 2026, an event organised by Guidance Tamil Nadu in association with the State Industries Department in Chennai.

Operating predominantly within the micro, small, and medium enterprise segment, which accounts for 98 per cent of its units, the leather and footwear sector serves as a vital pillar of the Tamil Nadu economy. The industry currently provides employment to approximately 1.95 million people across the State, with women from rural and economically weaker backgrounds constituting roughly 85 per cent of this workforce. Tamil Nadu maintains its position as the largest processing hub for leather, leather products, and footwear in India, supported by established manufacturing clusters located in Ranipet, Ambur, Vaniyambadi, Pallavaram, and Erode.

The state is also experiencing significant momentum in non-leather footwear manufacturing. This is evident by several overseas companies, particularly from Taiwan, signing investment agreements with the Tamil Nadu government. Key developments include projects by Hong Fu at Panapakkam, Pou Chen at Kallakurichi, Crocs through Kothari and Phoenix at Eraiyur, and Feng Tay at Cheyyar and Tindivanam. To sustain this momentum and modernise production capabilities, the industry has requested capital subsidies of 30 per cent for micro, small, and medium enterprises, and 20 per cent for large enterprises to upgrade machinery and expand capacity.

In tandem with technological upgrades, the industry is heavily prioritizing worker housing, seeking hostel facilities in the Ambur-Ranipet belt similar to those built by the government for mobile manufacturing units in Sriperumbudur and requested by the textiles industry in Tiruppur. At present individual companies accommodate or fund housing for a growing number of migrant workers from northern India. If built, state-backed hostels would significantly improve industrial productivity and growth. In response to these cluster-wide needs, TN Venkatesh, Principal Secretary of the Department of Handlooms, Textiles, Khadi, and Handicrafts, confirmed that the State government has allocated Rs. 1, 250 to construct ‘Thozhi hostels’ for women in industrial clusters.

The successful implementation of these infrastructure developments, capital subsidies, and the proposed 1,000-acre greenfield industrial park—incorporating tanneries, manufacturing, logistics, and skill development—is projected to fundamentally alter the scale of the state's manufacturing output.

With this sustained policy backing, the leather and footwear industry expects to expand its workforce to three million people and increase Tamil Nadu’s contribution to India’s total leather products exports to 60 per cent. Achieving these targets will solidify the state’s position as a dominant global manufacturing hub, driving substantial rural employment and establishing a highly integrated supply chain capable of absorbing large-scale foreign direct investment.