SHELLAC EXPORT

PROMOTION COUCIL
AND CENTRE FOR
LEATHER EXPORT
PROMOTION COUNCIL

BY:-
K.POOJA
17COHE009
 CONTENTS

1. INTRODUCTION
2. SHELLAC EXPORT PROMOTION
COUNCIL,
3. THE COUNCIL FOR LEATHER
EXPORTS (CLE)
SHELLAC AND FOREST PRODUCTS INDUSTRY & EXPORTS IN INDIA

INTRODUCTION

SHEFEXIL was formerly known as Shellac Export Promotion Council, which had been working
in partnership with the industry since 1957 as the catalyzing agency for the long-term
development and export promotion of shellac and lac-based products. It exports a variety of non-
timber forest/agricultural products (NTFPs), and has a global footprint in the export of such
produce.
Some of India's noteworthy produce includes:
 Sesame seeds: Food applications, Ayurvedic health treatments. India exported sesame seeds
worth US$ 463.90 million in 2017-18 and US$ 329.60 million between Apr-Oct 2018.
 Guar gum: Emulsifier, thickener, stabilizer for a wide range of foods, cosmetics and
pharmaceuticals. India exported guar gum worth US$ 646.94 million in 2017-18 and
US$ 401.01 million between Apr-Oct 2018.
 Shellac: Wood polish, food and drug coatings, cosmetics. Exports of Shellac from India
stood at US$ 44.53 million in 2017-18 and US$ 24.94 million between Apr-Oct 2018.
 Tendu leaf: Bidi wrapping. Exports of US$ 9.49 million in 2017-18 and US$ 3.55
million between Apr-Sep 2018.
 Tree-borne oil seeds: Biodiesel, medicines, dyes, tanning, fertilizers, pest control,
varnish
 Medicinal plants: Cosmetics and medicines
 Bamboo, rattans and canes: Furniture, handicraft, housing, food, paper. Bamboo
exports reached US$ 0.55 million in 2017-18 and US$ 0.42 million between Apr-
Sep2018.
KEY MARKETS AND EXPORT DESTINATIONS

India has been recording consistent growth in the export of NTFP over the last five years. It is
the largest exporter of guar gum, sesame seeds and shellac, and the second largest exporter of
medicinal plants in the world. India produces large volumes of NTFPs that are globally
acknowledged for their quality.
Moreover, NTFPs play a large role in contributing to the lives of millions of rural and forest-
dependent poor people. Guar gum, vegetable saps and sesame seeds are some of the major export
items. The main export destinations for guar gum are the US, China and Germany.

EXPORTERS
For exporters, SHEFEXIL helps with pre and post shipment inspection of exports consignments
and issuance of quality certificates after laboratory analysis of samples. SHEFEXIL also
provides up-to-date statistics on production, exports and daily price trends, and helps in
participating in fairs abroad.

1. MISSION STATEMENT
SHELLAC EPC is run by a tri-directional mission to
1. Conceptualize and strengthen plans and initiatives for exports of Minor Forest Produce,
2. Maximize India's export potential through collective action
3. Assist the members of the Council to discharge their responsibilities and obligations
under Foreign Trade Policy
2. VISION STATEMENT
1. To create a Global Brand for Indian Minor Forest Produce
2. To boost employment oriented Minor Forest Produce exports and ensure infrastructural
development in rural and tribal areas
3. To turn exports of Minor Forest Produce as a tool for improving the lives of the poorer
section of the population and develop the economically weaker sections of the society

Shellac EPC completed 49 years of existence which is perhaps an appropriate time to takes tock
of the current status and state of its functioning. Shellac EPC, having its Registered Office at"
Vanijya Bhawan", International Trade Facilitation Centre,1/1, Wood Street, 2nd Floor, Kolkata
700 016 is registered under Section 25 of the Companies Act of1957
Its major functions are:
(a) To provide commercially useful information and assistance to the members in developing and
increasing their exports
(b) To offer professional advice to their Members in areas such as technology up gradation,
quality and design improvement, standards and specifications, product development, innovation,
etc.
(c) To organize visits of delegations of its Members abroad to explore overseas market
opportunities and interact with importers abroad
(d) To organize participation in trade fairs, exhibitions and buyer-seller meets in India and
abroad
(e) To promote interaction between the exporting community and the Government both at the
Central and State levels
(f) To build a statistical base and provide data on the exports and imports of the country, exports
and imports of their Members, as well as other relevant international trade data.

SHELLAC EPC WAS SET UP IN JUNE 1957 WITH THE FOLLOWING

TASKS:
(a) To introduce orderliness and discipline and a sense of prospective in the lac trade
(b) To strengthen the export focus and improve competitiveness in the export market and to
enhance foreign exchange earnings from exports of lac and its various products

PERFORMANCE
• Increase in International Trade
• New Programs to develop Industry

COMPETENCY
• Improvement in Product mix
• Improvement in the Marketing mix
• Increase in Membership an endorsement of

THE QUALITY OF SERVICE

• An increase in Lac Crop Production

 New Frontiers New Initiatives

Till recently, SHELLAC has been looking after the exports of Shellac and Lac based products
only. The allocation of other Minor Forest Produce and their value added products not merely
compliments the existing product basket of Shellac EPC, but also enhanced its size,
responsibilities, multiplicity of tasks and operation levels several fold and also enhanced the
export performance of the Council which stood at US$ 676 Million during FY 2005-06 as
against US$ 565 Million during FY 2004-05 with an export growth of 20%. Exports from this
sector may not be generating billions of dollars but the importance lies in generation of millions
of jobs. According to a recent study done by Ministry of Environment and Forests, "Some 50
million tribal people depend on MFPs for meeting their subsistence consumption and income
needs". They can bring about major growth in employment by boosting exports of MFPs by
trying to help this unorganized sector to turn more competitive and face global challenges.
Major Product Groups
• Shellac, Lac based products
• Guar Gum
• Tendu leaf
• Bamboo, Rattans and Canes
• Tree Borne Oil seeds
• Plant and Plant portions
• Other Natural Gums
• Plant Extracts
• Sesamum Seeds
• Niger Seeds
FOSTERING THE FOREST:-

EMPOWERING TRIBALS:-
 THE COUNCIL FOR LEATHER EXPORTS (CLE)

The Council for Leather Exports (CLE) is the single largest and Apex trade promotion
organization of the strong and rapidly growing Indian leather & leather products industry. CLE is
committed towards the overall development of Indian leather sector and achieve higher export
growth to enhance India’s share in global leather trade. CLE is functioning under the aegis of
Ministry of Commerce & Industry, Govt. of India. It is the notified Export Promotion
organization for entire leather & leather products industry.

CORE OBJECTIVES OF CLE:

1. Develop & strengthen the leather industry both industrial development as well as export
growth.
2. Undertake concerted and aggressive export promotion and market development activities
to extend global reach of Indian leather & leather products.
3. Assist importers anywhere in the world towards their sourcing needs of Indian leather &
leather products.
4. Provide necessary assistance/guidance to overseas entrepreneurs in establishing business
collaborations and strategic alliances with Indian companies.
5. Serve as a vital link between the Government and the leather industry, representing
important policy measures, focusing on overall health and growth of the entire sector.
ACTIVITIES AND SERVICES OF CLE
 Disseminating market information, trends, policy matters and publishing information on
commercial, technical and technological developments in the Indian leather industry
 Facilitating export-import trade through redressal of various procedural hurdles by
representing to authorities concerned.
 Participating in major international leather trade fairs & specialized trade shows across
the globe.
 Organizing Buyer-Seller Meets and Mega Leather Shows, B2B meetings in potential
markets etc.,
 Promoting, facilitating & attracting joint ventures, technical collaborations & strategic
alliances, FDIs etc into the Indian leather sector.
 Inviting Resource persons / Experts to the trade Fairs, Seminars & Workshops held in
India, for exchange of information, knowledge, ideas and strategies.
 Mooting Delegations to overseas countries with a view to identify the sources for raw
materials for augmenting availability of leather for production in India.
 Perform facilitation and Coordination activities towards implementation of various
leather sector infrastructure strengthening, Human Resource Development programes of
Government of India.
 Facilitate in availing assistance under Integrated Development of Leather Sector (IDLS)
for Modernization & Technology up gradation of production units

INDIAN LEATHER INDUSTRY OVERVIEW, EXPORT PERFORMANCE AND

PROSPECTS FY 2018-19
CHALLENGES FACED BY THEM
1) Technical Barrier: As leather is produced from complex and non - uniform natural protein
material, if changes in processes are altered, the quality of leather will change accordingly. So, if
the tanner is producing a good quality of Leather which is satisfying his customers but the
process includes wasting of water, energy etc. then definitely the tanner will resist from
producing leather from this process in order to comply with the environmental demands.
2) Small & Medium enterprises: In India, mostly tanning operations is performed by the small
or medium enterprises out of which mostly are family businesses. People working here are not
formally educated. Their skills are acquired by their elders. So, lack of proper education and
training in this field is a major challenge.
3) Economic Barrier: Most of the chemicals and machineries required in tanning operations are
imported and also tanners have to maintain inventory of chemicals with higher stock in order to
be sufficient in chemicals even if there is a delay in delivery from the ports. This increases the
capital of the businesses thereby reducing profits.
FUTURE ASPECTS
Recently cattle slaughtering has been banned in India because of which International fashion
houses are worried about Whether the Indian leather producers will be able to meet the Ban on
cattle slaughtering dent India’s $13 Billion a supply needed or not as they import leather from
India in bulk year leather industry supply needed or not as they import from India in bulk
MAJOR EXPORT DESTINATIONS OF INDIA – 2016-17 COUNTRY APRIL-MARCH
2016-17 % SHARE
1 U.S.A. 870.39 15.36
2 GERMANY 660.03 11.65
3 U.K. 608.29 10.74
4 ITALY 375.41 6.63
5 SPAIN 294.22 5.19
6 FRANCE 288.81 5.10
7 HONG KONG 266.16 4.70
8 U.A.E. 227.28 4.01
9 CHINA 174.05 3.07
10 NETHERLANDS 169.71 3.00
11 BELGIUM 104.98 1.85
12 POLAND 101.69 1.79

BIBLIOGRAPHY

 http://leatherindia.org/category/industry/
 http://www.shellacepc.com/
 www.google.com
 www.wikipedia.com