Covid 2.0: Leather product shops roll down shutters

THE lanes of Delhi's Karol Bagh were once not just famous for its flea market, but also for the variety and affordable finished leather products available. All that has drastically changed, as of 2021, as the lanes remain deserted and some leather shops indefinitely shut.

Kamal Kishore Kaim, owner of Nand Leathers in Karol Bagh, told Bizz Buzz as to the uncertainty that looms over his business and the impact the pandemic has had on the industry. "Since the beginning of Covid pandemic last year, the overall business of leather has been severely impacted. We export all our finished leather to Europe and America, but because of varied factors such as low demand, lockdowns, competitive pricing, our business is barely able to cover the losses," said Kaim. Similar to most sellers, Kaim is hopeful that the demand will pick up by the end of July, though localised lockdowns continue in different parts of the capital. The leather market of Karol Bagh houses more than 50 such shops, mostly with dealers who sell finished leather products of goat, sheep, buffalo and rexine (faux) leather. Kaim owns a family business of finished leather goods. He procures raw leather from places such as Chennai, Ludhiana, Delhi NCR and Kolkata. "The other challenge we are facing as of now is the increased price of petroleum-based leather chemicals which is used to finish raw leathers. The prices of chemicals have increased by almost 50 per cent, which has further forced us to increase prices of our products. But there is very little demand for the goods," he added.

According to the local sellers, the market size has shrunk in the last 15 months due to lower demand with almost 20 per cent of the shops either being shut or downsized to cover the losses. While speaking with this correspondent, the business owners said that although the industry comes under the blanket of MSME, economic package relief and measures have seldom benefitted the sector. Divanshu Ahuja, a young entrepreneur at the leather market, sceptically shared his thoughts on the business operations commenting that all leather goods are experiencing a low demand not just internationally but also domestically. "You can see on the streets how the shops are performing. Most shops have poor sales with no customers. This is the overall experience of every industry; our sector isn't very different from others. We heard that Laxmi Nagar market has again gone under lockdown. Something similar might happen here as well and further push us towards financial losses," Ahuja opined.