[🇧🇩] Footwear, Rubber and leather Industry in Bangladesh

[Bilal9]

Tanners may get slight tariff relief on chemicals

The government is considering reducing customs duty on seven imported tanning chemicals in the upcoming national budget, offering slight relief to the country’s struggling tannery sector.

www.thedailystar.net

BUDGET FOR FY26
Tanners may get slight tariff relief on chemicals

View attachment 17943

The government is considering reducing customs duty on seven imported tanning chemicals in the upcoming national budget, offering slight relief to the country's struggling tannery sector.

At present, only 27 tanners benefit from bond facilities designed to support the domestic leather industry. Around 100 others operate without such privileges and face higher and varied duties on chemical imports, according to finance ministry sources.

Industry leaders say this disparity creates an uneven playing field. The Bangladesh Tanners Association (BTA) has told the National Board of Revenue that the existing duty structure is hurting the competitiveness of the sector.

There are also reports that some traders are exploiting the bond system by importing chemicals duty-free and then selling them on the open market — an abuse made more profitable by the high duties faced by non-bonded tanners.

In response, the government is now weighing a reduction in customs duty on seven key chemicals used in tanning, including chromium sulphate, acid dyes, and wattle extract.

Under the proposal, duties on six of these items may be cut from 5 percent to 1 percent, while the duty on sulphate could drop from 10 percent to 5 percent. However, the NBR may also impose a 15 percent value added tax (VAT) on sulphate.

Even so, tanners say the planned changes are too little to make a real difference.

In a formal submission to the NBR in March this year, the BTA called for a sharp cut in the total tax incidence, which now reaches as high as 58.6 percent on some chemicals when advance taxes are included.

The association urged the government to bring that figure down to 7.5 percent.

"The current import tax structure, ranging from 35 to nearly 40 percent on essential chemicals, is simply unsustainable," said Shaheen Ahmed, chairman of the BTA.

"Chemical imports are the lifeline of the tannery sector. Except for basic inputs like salt and lime, we rely entirely on imported chemicals. Competing with countries that enjoy cheaper raw materials becomes nearly impossible under these tax conditions," said Ahmed.

He claimed that minor reductions in duty will not solve the bigger problem.

"Even if duties are cut by a few percentage points, it doesn't resolve the bigger issues," he said.

"Large commercial importers might absorb these costs, but small and mid-sized tanneries operating under strict compliance frameworks are disproportionately burdened," added the association chairman.

Mizanur Rahman, general secretary of the association and director of Samata Leather Complex Ltd, said that earlier reductions in duty, such as those on chromium sulphate, were eventually reversed, eroding industry confidence.

"Only seven products now receive marginal benefits, while duties on many essential chemicals remain unchanged," he told The Daily Star. "A 4 percentage-point concession is too little to offset the rising compliance and administrative costs we face."

According to Rahman, lowering chemical costs allows tanners to pay higher prices for raw hides, which in turn encourages internal competition and improves market dynamics.

He said that without meaningful reforms, many small and medium-sized tanneries could be forced to shut down.

"If current conditions persist, international buyers will increasingly turn to more cost-efficient suppliers elsewhere," he said.

"If the government genuinely intends to support the leather sector, the duty structure must be redesigned to reflect practical, on-the-ground needs," he added.

Speaking at a Dhaka Chamber of Commerce & Industry (DCCI) event on Sunday, Syed Nasim Manzur, president of the Leather Goods and Footwear Manufacturers & Exporters Association of Bangladesh, said the country produces around 350 million square feet of leather annually. Of this, nearly 40 percent is collected during the Eid-ul-Azha season.

Yet only 20 percent to 25 percent is processed locally, mainly for shoes and bags. The rest is exported, with 65 percent passing through Chinese middlemen who offer lower prices than direct international buyers, said Manzur.

For the industry, Manzur cited infrastructure and compliance issues as key setbacks.

"The Central Effluent Treatment Plant (CETP) at Savar is still non-functional, and we do not have critical global certifications like Leather Working Group (LWG) approval. Without these, we cannot enter premium international markets," he said.​

Slight relief? These idiots should forego ANY tariff on tanning chemicals. I mean let's revive the leather sector first, then slowly impose tariffs to get back revenue.

If you have no revenue from a dying sector that was bustling even a decade ago, then what use are tariffs?

This stupidity boggles the mind...

 

[Saif]

Slight relief? These idiots should forego ANY tariff on tanning chemicals. I mean let's revive the leather sector first, then slowly impose tariffs to get back revenue.

If you have no revenue from a dying sector that was bustling even a decade ago, then what use are tariffs?

This stupidity boggles the mind...

Correct observation

 

[Saif]

Rawhide in Dhaka sold at Tk 700–900, below govt rate

Traders were purchasing cowhides for Tk 700–900 Tk each. Most sacrificial animals are medium-sized cows, and their hides are sold for 700–800 Tk.

en.prothomalo.com

Rawhide in Dhaka sold at Tk 700–900, below govt rate
Staff Correspondent Dhaka
Published: 07 Jun 2025, 22: 03

Hides of sacrificial animals are being sold at the Science Laboratory area in Dhaka on 7 June 2025. Prothom Alo

Rawhides are not being sold at government-fixed rates. The government raised Tk 5 per square foot of rawhide.

This has been learned after visiting the capital’s Mohammadpur, Science Laboratory, and Posta in Old Dhaka on Eid-ul-Azha, Saturday, and speaking with both buyers and sellers.

The price of cowhides is largely similar to last year's, whereas buyers have shown reluctance to purchase goat hides as they did in previous years.

Visiting these areas, raw cowhides were seen being sold between Tk 700-900. Smaller hides were being sold for up to Tk 600. Last year, cowhide prices were largely the same. Besides, goat hides were sold for Tk 5-10 each—similar to last year’s prices.

According to the Department of Livestock Services, there was a demand for approximately 10.38 million of sacrificial animals this year, while about 12.45 million animals, including cows and goats, were prepared for sacrifice. Tannery owners set a target to collect 8-8.5 million of hides during this year’s Eid season.

On 26 May, the Ministry of Commerce fixed the prices for sacrificial animal hides. In Dhaka, salted cowhide was priced at Tk 60–65 per square foot (up from 55–60 last year).

Outside Dhaka, the price was set at Tk 55–60 per square foot (up from 50–55). The minimum price for rawhide in Dhaka was set at Tk 1,350 and Tk 1,150 outside Dhaka. Additionally, salted hide of castrated goats was priced at Tk 22–27, and goat hide at Tk 20–22.

The wholesales in Posta area of Lalbagh, Old Dhaka, is one of the biggest areas for rawhide processing. Visiting the area around 4:00 pm on Saturday, seasonal traders and madrasa officials were seen arriving with rawhides on rickshaws, vans, and trucks. Warehouse owners were seen bargaining and buying the hides, and wholesale traders were also seen buying hides while sitting on chairs on the roadside.

Several warehouse owners and wholesalers said they were purchasing cowhides for Tk 700–900 each. Most sacrificial animals are medium-sized cows, and their hides are sold for Tk 700–800.

Trader Shahidul Islam was seen sitting on a plastic chair and buying hides in Posta. He purchased more than a hundred hides until 4:30 pm. He told Prothom Alo that seasonal traders often overpay when buying hides without knowing the market. However, the market is not doing well. He said they were buying hides for Tk 700–900.

Md Sharif, owner of Suman and Sons, was seen overseeing the hide purchases. He said they were purchasing each cowhide for Tk 700–900. According to him, processing each hide, including salt and labour costs, would cost around Tk 350–400. Since the market sees slump, they are purchasing hides at slightly lower prices than last year.

Seasonal trader Kawsar Ahmed brought 13 raw cowhides from the Kalabagan area to Science Laboratory for sale in the afternoon. He had bought them at Tk 600–700 and was asking for Tk 1,200 per hide. However, no warehouse owner or tanners was willing to pay more than Tk 750. Finally, he sold them all at that rate.

Kawsar Ahmed said the hides he brought should have sold for at least Tk 850–900 each. But he had to sell them at a loss. After paying van fares and a helper's wage, he would be left with nothing.

Sajedul Khair, director of Kalam Brothers Tannery, was purchasing hides from seasonal traders. This tannery plans to collect 100,000 to 150,000 salted hides this year. They aim to collect at least 10,000 raw hides within the two days of Eid.

Sajedul Khair said they bought most cowhides today from seasonal sellers at Tk 750–850, and they are paying per hide about Tk 30–50 more than last year.

Some very large hides were seen selling for as much as Tk 1,500. For instance, seasonal trader Rafiqul Islam was buying hides in the Mohammadpur Town Hall area in the afternoon. He said he bought over 60 hides since the morning. He paid Tk 3,000 for the hides of two cows that were purchased for Tk 3.2 million.

Sakhawat Ullah, senior vice chairman of Bangladesh Tanners Association (BTA), said there were more small cowhides this year. However, overall supply of hides is good.

According to him, the price per hide is Tk 100–150 higher than last year. He also said that tannery companies aim to collect 500,000 to 600,000 raw hides this year. These companies typically buy hides directly to help stabilise the rawhide market.​

 

[Saif]

Rawhides of sacrificial animals being sold at govt-fixed price

Commerce Adviser Sheikh Bashir Uddin has said the rawhides of the sacrificial animals are being sold in the country at government-fixed price. He also said a special team of the Ministry of Commerce has been working to make effective the price of rawhides set by the government. The Commerce Advis

thefinancialexpress.com.bd

Rawhides of sacrificial animals being sold at govt-fixed price

FE ONLINE DESK
Published :
Jun 09, 2025 00:06
Updated :
Jun 09, 2025 01:10

Commerce Adviser Sheikh Bashir Uddin has said the rawhides of the sacrificial animals are being sold in the country at government-fixed price.

He also said a special team of the Ministry of Commerce has been working to make effective the price of rawhides set by the government.

The Commerce Adviser made the statement after visiting the operations of fair management of rawhides of sacrificial animals at Posta under Lalbagh area of the capital on Sunday.

Replying to a question on the prices of rawhides, he said that they had earlier fixed the price of rawhides with salt. But, the prices of rawhides being sold in between Taka 700 to Taka 800 are without salt. “The prices of rawhides this time are higher than the prices witnessed over the years,”

Replying to another question on the seasonal rawhides trader, Bashir said that most of the seasonal rawhides traders lack due experiences and knowledge in preservation of rawhides and to some extent they are getting lesser prices of rawhides due to bad condition of rawhides. But, they are getting fair prices of rawhides with better condition ranging between Taka 1,200 to Taka 1,300.

The Commerce Adviser said that following directives from the Chief Adviser, they have been able to strike a balance between the demand and supply side while the district and upazila administrations have been working to ensure fair management of rawhides.

Besides, a control room has been opened at national level to ensure round the clock monitoring of fair management of rawhides.

He mentioned that in most of the cases, rawhides with salt are being sold at government fixed prices.

Bashir also urged all to remain alert about the activities of some unholy businessmen to bring a havoc in the rawhides sector.

Highlighting some of the measures taken by the interim government centering the Holy Eid Ul Azha, he said that the government has withdrawn ban on export of wet blue leather while some Taka 220 crore incentives have been disbursed. Besides, salt has been provided to the district and upazila level and even up to the mosques.

He said that the price of rawhides has increased today compared to yesterday while the price of rawhides with salt is expected to rise further tomorrow.

The Commerce Adviser said that the capacity of preserving rawhides has increased in the country while it is now possible to preserve rawhides for two to three months, he said urging all not to sell rawhides until fair price is ensured.

Commerce Secretary Mahbubur Rahman, Additional Secretary M Abdur Rahim Khan and Bangladesh Tanners Association President Md Shahin Ahmed were present, among others, on the occasion.​

 

[Saif]

Govt determined to break leather industry syndicates: Commerce Adviser

Commerce Adviser Sk Bashir Uddin on Monday said the government has been working to dismantle the powerful syndicates formed over the past 15 years centring the leather industry. Speaking to journalists after inspecting preparations for managing sacrificial animal hides at the largest leather marke

thefinancialexpress.com.bd

Govt determined to break leather industry syndicates: Commerce Adviser

FE Online Desk
Published :
Jun 09, 2025 20:30
Updated :
Jun 09, 2025 20:30

Commerce Adviser Sk Bashir Uddin on Monday said the government has been working to dismantle the powerful syndicates formed over the past 15 years centring the leather industry.

Speaking to journalists after inspecting preparations for managing sacrificial animal hides at the largest leather market in the southwest region at Rajarhat in Jashore, the Adviser emphasised the government’s commitment to protecting the interests of orphanages and madrasas involved in the leather trade, reports UNB.

He said the country’s leather industry has suffered from extensive mismanagement and chaos over the past 15 years, leading to its significant decline.

“Our efforts prioritise the welfare of madrasas and orphanages, while also focusing on the overall recovery and future of the leather sector. The government is taking nationwide action to break illegal syndicates and revive the industry,” Bashir said.

To ensure fair pricing and preservation of raw hides, the government has distributed 7.5 lakh maunds of salt across the country, the Adviser said, criticising seasonal traders for mishandling hides due to a lack of knowledge, which resulted in financial losses.

The Adviser also mentioned that the government released Tk 220 crore in incentives to tannery owners ahead of Eid to boost their capacity and is taking steps to expand market management.

He expressed optimism that these initiatives would help re-establish Bangladesh’s leather industry in international markets. “Although the government has been blamed for the disorder, our unprecedented efforts to protect the leather industry need everyone’s cooperation to succeed,” he said.

Jashore’s Deputy Commissioner Azahar Islam and Superintendent of Police Rownak Jahan were present during the visit.​

 

[Saif]

Adilur visits Savar tanneries to see rawhide preservation

Industries Advisor Adilur Rahman has said rawhides of more than 3.5 lakh sacrificial animals have so far been preserved in the tanneries of BSCIC Industrial City in Savar this year. Moreover, hides of over 7.50 lakh sacrificial animals would be reached to the tanneries very shortly, he said while

thefinancialexpress.com.bd

Adilur visits Savar tanneries to see rawhide preservation

FE ONLINE DESK
Published :
Jun 09, 2025 18:06
Updated :
Jun 09, 2025 18:06

Industries Advisor Adilur Rahman has said rawhides of more than 3.5 lakh sacrificial animals have so far been preserved in the tanneries of BSCIC Industrial City in Savar this year.

Moreover, hides of over 7.50 lakh sacrificial animals would be reached to the tanneries very shortly, he said while addressing a meeting with tannery owners at BSCIC Savar.

Adilur Rahman said this year the government has tried to ensure the proper storing of the rawhides and allow the sellers getting price of the rawhides as fixed by the government, reports BSS.

He said the government has given about 30 thousand metric tons of salt to tanneries for proper processing of the rawhides.

Adilur said the present government is making all efforts for development of the tannery industries. Action will be taken against the persons who are responsible for current miseries of the industry, he said adding that the Anti-Corruption Commission (ACC) has already summoned them.

The adviser also said the government has taken initiatives to modernize the tannery's central waste treatment plant.

Later, he inspected the rawhide preservation activities of the some tanneries.

Leaders of tannery association and other organizations related to leather industry were present.​

 

[Saif]

Record leather prices this year: Bashir Uddin

Trade Advisor Sheikh Bashir Uddin stated that leather prices this year were the highest in a decade and are likely to rise further next year. He emphasised the need for collective efforts and trade expansion to boost the economy. Speaking at a meeting with leather traders in Natore's Chakbaidyanat

thefinancialexpress.com.bd

Record leather prices this year: Bashir Uddin

FE ONLINE DESK
Published :
Jun 10, 2025 18:12
Updated :
Jun 10, 2025 18:12
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Trade Advisor Sheikh Bashir Uddin stated that leather prices this year were the highest in a decade and are likely to rise further next year. He emphasised the need for collective efforts and trade expansion to boost the economy.

Speaking at a meeting with leather traders in Natore's Chakbaidyanath area on Tuesday, he mentioned that while 620 hides were spoiled by seasonal traders in Chattogram, no such incidents occurred in Dhaka, according to local media.

The government has supplied tannery owners with salt samples to ensure proper leather preservation and distributed 750,000 maunds of salt nationwide. Bashir Uddin stressed inclusive business practices and expanding international trade to strengthen the market.

Local officials and business leaders also attended the event.​

 

[Saif]

Raw hide procurement in disarray

Raw hide trade, following the Eid-ul-Azha, is facing serious disruptions, sending distress signals not only to those directly engaged in the business but also to the leather industry as a whole. Seasonal traders, who collect raw hides from across the country during the Eid season, are finding it in

thefinancialexpress.com.bd

Raw hide procurement in disarray

Published :
Jun 13, 2025 00:59
Updated :
Jun 13, 2025 00:59

Raw hide trade, following the Eid-ul-Azha, is facing serious disruptions, sending distress signals not only to those directly engaged in the business but also to the leather industry as a whole. Seasonal traders, who collect raw hides from across the country during the Eid season, are finding it increasingly difficult to sell their stocks. The core issue lies in the disconnect among the collectors, wholesale buyers (aratdars), and tannery owners. While seasonal traders accuse aratdars of offering prices far below expectations, the latter complain that tannery owners are unwilling to pay the government-fixed rates. Allegations abound that tanners have, for several years now, maintained a syndicate to artificially suppress prices in order to maximise profits.

This year, prices of cowhides reportedly dropped 30-40 per cent below the government-fixed minimum retail price (MRP). The government had set cowhide prices at Tk 1,350 in the capital and Tk 1,150 outside, or Tk 60-65 per square foot, up from Tk 55-60 the previous year. Tannery owners have set a target of collecting 8.0 to 8.5 million pieces of hides during the current season. However, as regards their reluctance to buy at government-set prices, they argue that in the wake of the continuing slump in international prices and stocks already available with them from last year's collection, they are not prepared to risk purchases at uncompetitive prices. Reports say, so far, collection of raw hides and skins has been far below the expected level. As a result, many seasonal traders, especially in the northern districts, are reportedly stockpiling unsold hides, anticipating better prices. In the case of goatskins, the situation is even worse. Many collectors, unaware of the prevailing market rates, purchased goatskins in bulk only to find that aratdars were offering throwaway prices, rendering their collections almost worthless.

Observers view this scenario as a troubling sign for the country's leather sector, which is already grappling with various challenges. They fear that in the absence of proper preservation, the raw stuff now lying with the traders unsold may get wasted. At the same time, there is the looming threat of large-scale smuggling to neighbouring countries. If the hides are not disposed of locally well within time, then smuggling becomes the only probable outlet. Informed sources say every year business people from across the border pay substantial amounts in advance to local collectors prior to Eid-ul-Azha to make sure that the illicit cross-border operation succeeds, despite 'watchful eyes' of the border forces on both sides.

To prevent such outcomes, the government must act promptly. Law enforcement and relevant agencies should intensify vigilance along border areas. A coordinated effort involving local administration, industry stakeholders, and security forces is essential to stabilise the raw hide market and protect the interests of both traders and the leather industry. Without timely intervention, the fallout could be severe-economically and reputationally-for a sector that holds significant export potential and employment prospects for the country.​

 

[Saif]

Loan release for leather sector falls short of target

The Bangladesh Bank’s initiative to inject Tk 232 crore into the leather sector for procuring rawhide during Eid-ul-Azha has fallen significantly short, with only Tk 125 crore disbursed to businesses, according to industry insiders...

www.newagebd.net

Loan release for leather sector falls short of target
United News of Bangladesh . Dhaka 12 June, 2025, 23:01

The Bangladesh Bank’s initiative to inject Tk 232 crore into the leather sector for procuring rawhide during Eid-ul-Azha has fallen significantly short, with only Tk 125 crore disbursed to businesses, according to industry insiders.

Bankers cited a lack of interest among leather traders in taking out new loans as a reason for the shortfall, while the industry insiders highlighted a sharp rise in loan defaults, which has made banks more reluctant to extend credit to the sector.

As a result, tannery owners and seasonal leather suppliers have been unable to purchase sufficient quantities of rawhide during the peak Eid-ul-Azha season.

Stakeholders are now calling for easier loan terms and relaxed documentation requirements ahead of what is typically the country’s largest rawhide collection period.

Although nine banks initially approved Tk 232 crore in loans for rawhide procurement this year, only Tk 125 crore was disbursed, leading to a funding shortfall that entrepreneurs say has hampered both the collection and processing of rawhide.

According to sources, the Tk 125 crore disbursed this Eid season marked a steep decline from previous years — down from Tk 270 crore in 2024, Tk 259 crore in 2023, Tk 443 crore in 2022, Tk 735 crore in 2021 and Tk 1,800 crore in 2019.

Md Shaheen Ahmed, chairman of the Bangladesh Tanners Association, told UNB, ‘Since leather is a perishable product, it needs to be collected and stored quickly. Cash is needed to buy leather collected from various warehouses across the country.’Bangladeshi cuisine recipes

‘For this, the warehouses collect leather from part-time traders during the Eid season. But even though tannery owners do business with their own capital throughout the year, special financing is needed for additional cash during Qurbani. This time, the banks had a demand of Tk 300–350 crore. They gave only Tk 125 crore, which is not enough,’ he added.

He said that with adequate cash loan support, problems in the leather sector could have been mitigated. ‘The poor and needy would have received cash from the leather. Foreign exchange income would have increased by exporting this,’ he pointed out.

Bangladesh Bank executive director and spokesperson Arif Hossain Khan said that the target for lending to the leather sector this time was Tk 232 crore. ‘It is not possible to say before the bank opens how much loan will be waived in the end,’ he said.

He also acknowledged that a segment of traders failed to repay borrowed funds, which has led to a significant rise in loan defaults in the sector. ‘If they ask for loans and don’t repay them, who will give them new loans? So they have to take loans with the mindset of repaying them. Otherwise, the crisis will not end,’ he said.Bangladeshi cuisine recipes

According to the Bangladesh Bank’s latest report, the outstanding loan balance in the leather industry stood at Tk 12,628 crore as of December 2024. Of this, Tk 4,844 crore has defaulted, accounting for 38 per cent of total loans in the sector.

The Bangladesh Tanners Association represents approximately 800 members, including tannery owners and commercial exporters. There are 1,866 large and medium-sized tanneries across the country.

Besides, many small tanneries collect leather from seasonal entrepreneurs during Eid-ul-Azha.

Tanner Anwar Hossain said that while most rawhide was collected during Eid-ul-Azha, inadequate management led to the wastage of roughly 30 per cent each year.

The leather sector not only contributes to national growth and employment but also earned approximately $1.13 billion in foreign exchange during the last financial year, underscoring the need for focused attention and support.Bangladeshi cuisine recipes

Amjad Ali, a seasonal leather supplier, said, ‘Banks only give loans to tannery owners and exporters. They do not give loans to others involved in the raw leather business. If money had been received according to demand, the spoilage of leather could have been prevented.’​

 

[Saif]

Synthetic footwear exports soar as global demand shifts

Bangladesh’s non-leather footwear sector is emerging as a steering force in the country’s export landscape, driven by global shifts in consumer preferences, strong manufacturing capacity, and competitive pricing

www.thedailystar.net

Synthetic footwear exports soar as global demand shifts

Bangladesh's non-leather footwear sector is emerging as a steering force in the country's export landscape, driven by global shifts in consumer preferences, strong manufacturing capacity, and competitive pricing

While leather footwear still leads with $620.17 million in exports until May of fiscal year 2024-25, up 28.96 percent year-on-year, the non-leather segment is rapidly catching up.

In the first 11 months of the current fiscal year, non-leather footwear exports fetched $494.28 million, marking a 30.25 percent growth compared to $379.48 million in the same period of the previous fiscal year, according to Export Promotion Bureau data.

In May alone, leather footwear fetched $74.82 million compared to $48.37 million a year earlier.

Industry insiders credit this growth to modern production capacity and fewer compliance burdens, making it easier for Bangladeshi manufacturers to meet global standards and attract international buyers.

"The non-leather segment benefits from fewer regulatory hurdles," noted one industry expert.

"Unlike the leather sector, which requires certification from the Leather Working Group (LWG) and faces challenges related to raw material quality and environmental compliance, synthetic footwear producers primarily need to meet factory compliance standards," he said.

As demand for fashionable, affordable, and sustainable footwear grows globally, particularly among younger consumers, the synthetic footwear segment is well-positioned to become a key contributor to Bangladesh's export diversification strategy.

In the decade preceding the end of FY24, non-leather footwear exports ballooned 120 percent, jumping from $189 million to $416 million.

"The young generation in the Western world is shifting from leather to synthetic shoes as they are more comfortable, fashionable, and cheaper," said Riad Mahmud, managing director of Shoeniverse Footwear.

In contrast, leather shoes are worn for formal occasions and have limited design flexibility, causing a global demand decline of around 12 percent annually, he noted.

This shift has fuelled steady growth in synthetic shoe demand over the past five to six years.

Shoeniverse's Mymensingh-based factory, employing around 4,700 workers, supplies footwear to major global brands including Inditex, Aldi, Matalan, and RedTape.

Mahmud said global brands are increasingly placing orders in Bangladesh, drawn by its competitive labour costs and proven expertise in apparel manufacturing.

He emphasised that the non-leather footwear sector holds strong potential due to its labour-intensive nature, giving Bangladesh a cost advantage over countries like Vietnam.

However, challenges persist. Delays in customs clearance for raw materials hamper lead times—a critical factor in the fashion-driven synthetic shoe market that demands quick delivery.

Despite this, demand remains robust. Shoeniverse is fully booked through March next year, with buyers seeking new slots amid potential US tariffs on Chinese goods.

A market assessment by Bangladesh Investment Development Authority (Bida) supports the trend, citing rising non-leather footwear exports due to increased orders from global brands such as H&M, Puma, Decathlon, FILA, and Kappa.

Major export destinations include Spain, France, the Netherlands, South Korea, India, Italy, and Germany.

Maf Shoes Ltd, a TK Group subsidiary exporting to France and Germany, boosted daily output from 50,000 to over 65,000 pairs. "European demand is soaring but structural barriers remain," said Managing Director Hasnat Md Abu Obida Marshall.

Europe remains the top market for Bangladeshi synthetic shoes, yet exporters face customs confusion, weak logistics, and exclusion from RMG-specific waivers.

"During Eid, our containers were stuck, but penalty waivers applied only to the BGMEA," a frustrated exporter said.

Moreover, competing with China is tough. While Chinese exporters enjoy 7 percent to 12 percent incentives and raw material self-sufficiency, Bangladesh battles high import duties, delays, and little policy support.

"We import everything and still try to compete on price," said one exporter.

The country also lags in value-added footwear. Despite paying lower wages than Vietnam, productivity remains much lower in Bangladesh.

"We are burning money just to keep factories running," the exporter added.

Some big global firms are eyeing India for relocation, drawn by availability of land, tax breaks, and better infrastructure in states like Tamil Nadu and Kerala.

"India calls investors—we don't even have an exit policy for foreign investment," said Marshall.

To unlock growth, exporters are calling for swift government action, including a dedicated synthetic footwear policy, equal customs treatment as RMG, access to technology financing, and incentives for backward linkage industries, he said.

Jakaria Shahid, managing director of Edison Footwear Limited, sees the synthetic footwear sector as a crucial driver for future export diversification, thanks to its fast-paced expansion.

However, he pointed out that major international brands like Nike and Adidas have yet to enter the Bangladeshi market, mainly because local manufacturers struggle to meet required lead times.​

 

[Bilal9]

Here is a factory overview for Shoeniverse Ltd. in Mymensingh

 

[Bilal9]

Another factory profile for Apex Footwear Ltd. in Gazipur. This is one of the largest state-of-the-art shoe factories in South Asia. They produce both leather-dress and non-leather-sports shoes.

 

[Saif]

Bangladesh needs to accelerate green transformation of the leather industry

Leather industry is one of the oldest industries in Bangladesh. While the global demand for leather and leather goods is constantly increasing, the leather industry of Bangladesh is grappling with challenges that, unless redressed effectively, stand out as hurdles for the sector to unlock its full

thefinancialexpress.com.bd

Bangladesh needs to accelerate green transformation of the leather industry

T I M Nurul Kabir
Published :
Jul 05, 2025 22:06
Updated :
Jul 05, 2025 22:06

Leather industry is one of the oldest industries in Bangladesh. While the global demand for leather and leather goods is constantly increasing, the leather industry of Bangladesh is grappling with challenges that, unless redressed effectively, stand out as hurdles for the sector to unlock its full potential.

According to the global market research reports and consulting firm Fortune Business Insights, the global leather goods market size was valued at USD 498.57 billion in 2024 and is projected to grow from USD 531.07 billion in 2025 to USD 855.36 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.05 per cent during the forecast period.

Leather and leather goods industry of Bangladesh is the second highest export-earning sector after the readymade garments (RMG) industry. Bangladesh's leather is acclaimed nationally and internationally for its high-quality grain, uniform fibre structure, smooth feel and natural texture.

The leather industry of Bangladesh has the advantage of abundant availability of domestic raw materials and low-cost labour. As Bangladesh is rich in key raw materials, the leather and leather goods industry has the potential to be the key sector for export diversification.

Previously exports depended mainly on wet blue leather. However, processed leather and finished leather products can add up to 90 per cent value to leather goods. In recent years, total export of raw hides, skins, and leather shows a downward trend. On the other hand, total export of merchandise made of leather is observed to have an increasing trend, signaling a shift toward higher-value products.

According to the Export Promotion Bureau (EPB) data, total leather exports between July 2024 and May 2025 amounted to 1,057.82 million US dollars, an increase of 12.55 per cent over the same period of the previous fiscal year. Leather footwear exports have demonstrated significant success. According to the World Footwear 2024 Yearbook, Bangladesh has emerged as one of the world's top 10 footwear producers over the past decade.

Export receipts from leather footwear stood at 545.35 million US dollars during the first ten months of FY25, showing 26.08 per cent rise. On the contrary leather goods exports between July 2024 and March 2025 fell by 6.11 per cent to 256.44 million US dollars, and finished leather exports fell by 6.29 per cent to 99.40 million US dollars, on a comparable basis to the same months of the previous fiscal year.

Bangladesh accounts for about 3.5 per cent of the total rawhide produced globally. However, despite ample supply of domestic raw materials the leather and leather goods industry contributes nearly 4 per cent of the country's total exports. The RMG industry, despite significant reliance on imported raw materials on the other hand, contributes 80 per cent to Bangladesh's total export earnings. Main restraints to industry performance of the leather sector include issues such as fragmentation in the sector; inefficient procurement, preservation and processing system of rawhide and animal skins; water pollution and health safety compliance issues, and inadequate finance.

Bangladesh's total supply of rawhide and skins is around 20 million units per year, of which about 50 per cent comes during the main sacrificial festival Eid-ul-Adha. In absence of an integrated network for collecting and preserving rawhides the procurement, preservation and processing system is fragmented and irregular.

Seasonal traders, brokers and wholesalers buy rawhides on the basis of average size. Rawhide is treated with salt for preservation. Workers involved in applying salt lack proper knowledge about preservation, and so, skin quality declines and skins are often permanently damaged. Moreover, per unit preservation cost of goat/sheep skin is higher than the selling price that the traders get. Local collectors and seasonal traders have been discarding goat/sheep skins along roadsides during Eid-ul-Adha. Such inability to sell bovine hides represents financial loss for the traders and a missed opportunity for the leather industry.

Tanners buy salt-cured rawhides from the wholesalers at per square foot price. There are 200 tanneries and 3500 small and medium enterprises (SMEs) producing blue wet leather, crust leather and finished leather from rawhides. According to the Bangladesh Investment Development Authority (BIDA), Bangladesh produces 350 million square feet of leather every year, of which 56 per cent comprise cowhides, 30 per cent goat/sheep hides and skins and 14 per cent buffalo skins. Of the total leather produced 20 to 25 per cent is used to meet domestic demand and 75 to 80 per cent is exported.

To enable compliance in the leather industry and to prevent pollution of the Buriganga river, all the tanneries were relocated from Hazaribagh to the BSCIC Tannery Industrial Estate in Savar. However, the central effluent treatment plant (CETP) has still not been made fully operational and there is no permanent arrangement for a solid waste disposal site or dumping yard. The result is growing pollution in the Dhaleshwari river. Work environment in tanneries is very dirty due to poor management of waste. Most tanneries do not follow the basic health compliance guidelines.

The government is urging the tannery owners to establish their own effluent treatment plant (ETP). According to reports, so far six companies have been given permission to build ETP of their own and another eight to 10 tanneries are in the process of getting approval. However, most SMEs do not have funds to establish ETP of their own.

Issues concerning environmental and health standards leave negative impact on the export of rawhide and leather goods. Having an effluent distribution system is one of the prerequisites for obtaining internationally recognized Leather Working Group (LWG) certification. Tanneries are unable to obtain the LWG certificate due to the lack of fully functional central effluent treatment plant (CETP).

All the developed countries, including the US, Japan and the EU demand transparent and sustainable supply chains. Major global brands stipulate that the products must be made using leather from LWG-certified companies. Using locally produced leather for higher value addition is not possible because majority of the tanneries do not have LWG certificate. Local tanneries are compelled to sell leather to countries such as China and India at approximately 50-60 per cent lower prices than that in Western markets. And Bangladeshi exporters spend approximately $100 million annually to import LWG certified finished leather, although the country has abundant supply of rawhide.

Despite the obvious challenges, the leather industry of Bangladesh has shown magnificent resilience and achieved remarkable growth in recent years. To unlock the full potentials of the leather industry, Bangladesh needs to accelerate green transformation of tanneries, develop integrated network for raw material collection and preservation and engage in public-private collaboration for skills development and green finance to achieve sustainable export growth in the post-LDC era.

T.I.M. Nurul Kabir is Business, Technology and Policy Analyst.​

 

[Saif]

US tariff threatens booming synthetic shoe exports

The country’s growing non-leather footwear industry, which more than doubled its exports in just seven years, now faces a major setback as a steep new tariff from the United States threatens its growth and global competitiveness.

www.thedailystar.net

US tariff threatens booming synthetic shoe exports

The country's growing non-leather footwear industry, which more than doubled its exports in just seven years, now faces a major setback as a steep new tariff from the United States threatens its growth and global competitiveness.

Synthetic shoes, popular worldwide for their comfort and style over leather footwear, helped push export earnings from this segment to $523 million in the recently concluded fiscal year (FY) 2024-25, up from $244 million in FY 2017-18.

Buoyed by increasing global demand, manufacturers had been eyeing $1 billion in annual earnings within the next two to three years.

But that optimism is now fading as Bangladeshi exporters will have to contend with a 50 percent tariff on synthetic footwear shipments to the US from August 1.

The rate includes a newly imposed 35 percent duty on top of the 15 percent they were already paying.

Local shoe-makers fear this could reverse a trend that had seen US buyers increasingly shifting their sourcing from China to Bangladesh. The move is likely to hand the advantage to Vietnam, which faces a much lower 20 percent tariff.

"This sector thrives because global buyers see Bangladesh as a cost-effective alternative to China," said Riad Mahmud, managing director of Shoeniverse Footwear.

"But a 35 percent additional tariff would erase our price advantage and push buyers towards Vietnam, which has to pay a tariff of only 20 percent," he added.

Mahmud said that the sharp rise in duty could wipe out profits, disrupt cash flow, and threaten jobs.

His Shoeniverse plant in Mymensingh alone employs 4,700 workers.

He said, "Around 95 percent of orders from US buyers have been temporarily postponed due to the new tariff. This is not an industry where you can pause for six weeks and simply restart."

Over the years, Bangladesh has been gaining traction in the global synthetic shoe market, thanks to its competitive labour costs and export experience from the readymade garments sector.

The country's Western buyers include leading brands like H&M, Puma, Decathlon, Inditex, Aldi, Matalan, and RedTape. After the pandemic, these brands have been placing more orders to diversify away from China.

According to the Bangladesh Investment Development Authority (Bida), the non-leather segment is rapidly catching up with leather footwear, which earned $672 million in exports in FY 2024-25, a 23.54 percent increase year-on-year.

But while synthetic shoes are cheaper to make, the profit margins are razor-thin.

Mahmud mentioned that labour makes up 20 to 22 percent of production costs, while raw materials account for around 70 percent. On top of that, delays at customs and unclear trade policies are putting further pressure on the sector.

"Without clarity, planning is impossible. Bangladesh has the skills to lead in synthetic footwear, but we urgently need stable trade conditions," said Mahmud.

Hasnat Md Abu Obida Marshall, managing director of Maf Shoes Ltd, which supplies footwear items to brands like Kappa and H&M, said many exporters were already feeling the heat, with US orders either on hold or cancelled.

"European buyers have not objected yet, but those in the US market could suffer badly," he said.

Marshall said the new tariff imposed by the Trump administration adds to long-standing issues.

Unlike China, Bangladesh depends heavily on imported raw materials, often taxed at up to 60 percent, which raises product costs eventually.

"We import everything yet try to compete on price," said Marshall, adding that China not only has local access to raw materials but also offers 7 to 12 percent government incentives.

According to him, even an 8 percent cash incentive offered by Bangladesh fails to make a meaningful impact.

"If I pay 60 percent duty and get 8 percent incentive, there is no real benefit left," Marshall said, adding that many exporters skip the incentive altogether due to the bureaucratic process.

He also identified low productivity as a concern, saying that despite lower wages than in Vietnam, Bangladesh still falls behind in producing value-added footwear.

The shoe-maker also said that the country's graduation from the least-developed country club in November next year further clouds the sector's outlook.

"If we rush into investments, we risk heavy losses and job cuts," he said.

The tariff uncertainty has already rippled into other sectors like garments, he added, and could damage Bangladesh's standing in the global footwear market without strong policy support and investment in capacity.

Ahsan Khan Chowdhury, chairman and CEO of Pran-RFL Group, said the new US tariff would severely disrupt exports to the American market, especially for companies that had made targeted investments there.

He urged the government to expedite negotiations with US authorities to secure continued access and protect the export sector.

"If Bangladeshi exporters fail to remain competitive in the US market, they will have to seek alternative destinations to recover their investments and safeguard the jobs of hundreds of workers," Chowdhury said.

Hasanuzzaman, managing director and CEO of BLING Shoes Ltd, which posted 30 percent export growth last fiscal year, echoed similar concerns.

Hasanuzzaman said he supplies US buyers, including Merrell, Saucony, and Carter, and although none of his current orders have been cancelled, the future is uncertain.

"If the tariff is not reduced, exports will definitely be hampered," he said.​

 

[Bilal9]

US tariff threatens booming synthetic shoe exports

The country’s growing non-leather footwear industry, which more than doubled its exports in just seven years, now faces a major setback as a steep new tariff from the United States threatens its growth and global competitiveness.

www.thedailystar.net

US tariff threatens booming synthetic shoe exports

View attachment 20211

The country's growing non-leather footwear industry, which more than doubled its exports in just seven years, now faces a major setback as a steep new tariff from the United States threatens its growth and global competitiveness.

Synthetic shoes, popular worldwide for their comfort and style over leather footwear, helped push export earnings from this segment to $523 million in the recently concluded fiscal year (FY) 2024-25, up from $244 million in FY 2017-18.

Buoyed by increasing global demand, manufacturers had been eyeing $1 billion in annual earnings within the next two to three years.

But that optimism is now fading as Bangladeshi exporters will have to contend with a 50 percent tariff on synthetic footwear shipments to the US from August 1.

The rate includes a newly imposed 35 percent duty on top of the 15 percent they were already paying.

Local shoe-makers fear this could reverse a trend that had seen US buyers increasingly shifting their sourcing from China to Bangladesh. The move is likely to hand the advantage to Vietnam, which faces a much lower 20 percent tariff.

"This sector thrives because global buyers see Bangladesh as a cost-effective alternative to China," said Riad Mahmud, managing director of Shoeniverse Footwear.

"But a 35 percent additional tariff would erase our price advantage and push buyers towards Vietnam, which has to pay a tariff of only 20 percent," he added.

Mahmud said that the sharp rise in duty could wipe out profits, disrupt cash flow, and threaten jobs.

His Shoeniverse plant in Mymensingh alone employs 4,700 workers.

He said, "Around 95 percent of orders from US buyers have been temporarily postponed due to the new tariff. This is not an industry where you can pause for six weeks and simply restart."

Over the years, Bangladesh has been gaining traction in the global synthetic shoe market, thanks to its competitive labour costs and export experience from the readymade garments sector.

The country's Western buyers include leading brands like H&M, Puma, Decathlon, Inditex, Aldi, Matalan, and RedTape. After the pandemic, these brands have been placing more orders to diversify away from China.

According to the Bangladesh Investment Development Authority (Bida), the non-leather segment is rapidly catching up with leather footwear, which earned $672 million in exports in FY 2024-25, a 23.54 percent increase year-on-year.

But while synthetic shoes are cheaper to make, the profit margins are razor-thin.

Mahmud mentioned that labour makes up 20 to 22 percent of production costs, while raw materials account for around 70 percent. On top of that, delays at customs and unclear trade policies are putting further pressure on the sector.

"Without clarity, planning is impossible. Bangladesh has the skills to lead in synthetic footwear, but we urgently need stable trade conditions," said Mahmud.

Hasnat Md Abu Obida Marshall, managing director of Maf Shoes Ltd, which supplies footwear items to brands like Kappa and H&M, said many exporters were already feeling the heat, with US orders either on hold or cancelled.

"European buyers have not objected yet, but those in the US market could suffer badly," he said.

Marshall said the new tariff imposed by the Trump administration adds to long-standing issues.

Unlike China, Bangladesh depends heavily on imported raw materials, often taxed at up to 60 percent, which raises product costs eventually.

"We import everything yet try to compete on price," said Marshall, adding that China not only has local access to raw materials but also offers 7 to 12 percent government incentives.

According to him, even an 8 percent cash incentive offered by Bangladesh fails to make a meaningful impact.

"If I pay 60 percent duty and get 8 percent incentive, there is no real benefit left," Marshall said, adding that many exporters skip the incentive altogether due to the bureaucratic process.

He also identified low productivity as a concern, saying that despite lower wages than in Vietnam, Bangladesh still falls behind in producing value-added footwear.

The shoe-maker also said that the country's graduation from the least-developed country club in November next year further clouds the sector's outlook.

"If we rush into investments, we risk heavy losses and job cuts," he said.

The tariff uncertainty has already rippled into other sectors like garments, he added, and could damage Bangladesh's standing in the global footwear market without strong policy support and investment in capacity.

Ahsan Khan Chowdhury, chairman and CEO of Pran-RFL Group, said the new US tariff would severely disrupt exports to the American market, especially for companies that had made targeted investments there.

He urged the government to expedite negotiations with US authorities to secure continued access and protect the export sector.

"If Bangladeshi exporters fail to remain competitive in the US market, they will have to seek alternative destinations to recover their investments and safeguard the jobs of hundreds of workers," Chowdhury said.

Hasanuzzaman, managing director and CEO of BLING Shoes Ltd, which posted 30 percent export growth last fiscal year, echoed similar concerns.

Hasanuzzaman said he supplies US buyers, including Merrell, Saucony, and Carter, and although none of his current orders have been cancelled, the future is uncertain.

"If the tariff is not reduced, exports will definitely be hampered," he said.​

I think the tariff threats are a bargaining tool by the US Trade office.

Trade reps from Bangladesh are already negotiating actively with US trade reps and there will be agreements reached soon...

 

[Saif]

I think the tariff threats are a bargaining tool by the US Trade office.

Trade reps from Bangladesh are already negotiating actively with US trade reps and there will be agreements reached soon...

US trade representatives have already sent a long list of products on which they need Bangladesh to give duty free access.

 

[Bilal9]

US trade representatives have already sent a long list of products on which they need Bangladesh to give duty free access.

Well we are not in a position to negotiate from any position of strength.

Running to the WTO will not help.

So concede we must.

 

[Saif]

Leather, leather-goods exports see 10pc growth

The export earnings from the leather and leather goods increased by 10.19 per cent to $1.14 billion in the recently concluded financial year 2024-25, according to the Export Promotion Bureau...

www.newagebd.net

Leather, leather-goods exports see 10pc growth
Staff Correspondent 22 July, 2025, 23:31

Two workers arrange hides at a tannery in the capital recently. The export earnings from the leather and leather goods increase by 10.19 per cent in FY25. | Sony Ramani

The export earnings from the leather and leather goods increased by 10.19 per cent to $1.14 billion in the recently concluded financial year 2024-25, according to the Export Promotion Bureau.

The leather sector, one of the major industries after the readymade garment sector, earned $1.03 billion in FY24.

However, despite the domestic supply of raw materials, the leather export earning has been hovering around $1 billion for the last several years.

In FY23, the sector earned $1.17 billion, compared with $1.24 billion in FY22 and $1.03 billion in FY21, as stated in the EPB data.

In FY25, the country earned $48.28 billion from exporting goods, 8.58 per cent higher than the $44.46 billion in FY24, while the earnings from the leather sector accounted for approximately 2.36 per cent of the total export earnings.

Speaking to New Age, Md Nasir Khan, vice-president of the Leather goods and Footwear Manufacturers and Exporters Association of Bangladesh, said that due to a lack of governmental policy support, the leather sector had been unable to break out of the $1 billion cycle for decades.

‘We don’t have any unified policy and incentive facilities for all export-oriented sectors. Despite having domestic supply of raw materials and high-quality products, leather sector is lagging years after years,’ he added.

Sometimes it seemed that policymakers didn’t want the sector to export more, as it didn’t receive sufficient policy support, he added, saying that even the central effluent treatment plant was under-capacity and non-functional, which reflected their reluctance.

‘To diversify products, government must remove the discrimination between RMG sector and all other export-oriented sectors. The government must introduce unified policy, bond facilities and other incentives,’ he added.

He also stated that the leather sector has the capacity to earn $10 billion, as it can add value of up to 90 per cent, thanks to its raw materials. However, the government destroyed this opportunity by transferring the industry to Savar without proper establishment and the required CETP.

He also said that the same principle applies to market diversification — if the government wants, it can also diversify Bangladesh’s market.

For almost three decades, Apex Footwear Limited has been in the shoe exporting business, with a footprint in the US, UK, Europe, and Japan.

Omar Faruk, company secretary of Apex Footwear Limited, told New Age that like the overall leather goods sector, they also face some global and internal challenges, including dollar issues and other domestic challenges.

He also said that the recently declared 35 per cent tariff on Bangladeshi exports of goods would further impact the sector.

The businesses also stated that, despite having significant export potential, the leather sector has faced stagnation primarily due to persistent compliance issues.

Global buyers are refraining from importing leather goods from Bangladesh, as the country’s leather industry continues to fall short of meeting compliance requirements, including obtaining a Leather Working Group certificate.

Talking to New Age, M Masrur Reaz, chairman of the Policy Exchange Bangladesh, said that the country didn’t utilise its capacity and potential.

‘The authority didn’t strengthen the seamless connections among different value chains like rawhide collecting, processing, finishing and backward linkage,’ he added.

He also stated that a significant number of companies in the sector lacked standard certificates, such as LWG, which deterred foreign buyers from importing.

‘Despite the potential of reaching $10 billion export annually, we don’t have integrated planning, especially on infrastructure, finance, skill, and attracting foreign investment,’ he added.

The businesses and experts also suggested some key factors, including investing in the environment, product diversification, developing skilled workforces, and sufficient governmental support.

They also urged manufacturers to ensure supply chain traceability, invest in branding and marketing, and continue to adopt advanced manufacturing technologies.​

 

[Saif]

Young entrepreneurs bootstrapping the leather sector

From setting up micro-factories in Hazaribagh to attending international expositions, a new generation of leather entrepreneurs is trying to bring fresh momentum to one of Bangladesh’s most promising sectors for exports.

www.thedailystar.net

Young entrepreneurs bootstrapping the leather sector

Emerging leather entrepreneurs showcase their products at the 9th Bangladesh Leather & Footwear Expo organised by the Bangladesh Tanners Association at the International Convention City Bashundhara recently. The event offered an opportunity for young entrepreneurs to connect with buyers and build export pathways. Photo: Star

From setting up micro-factories in Hazaribagh to attending international expositions, a new generation of leather entrepreneurs is trying to bring fresh momentum to one of Bangladesh's most promising sectors for exports.

With technical expertise, business insight, and a strong sense of commitment, they are transforming the leather goods industry—from one once burdened by environmental and compliance challenges to a sector of new opportunities.

The vibe was evident at the 9th Bangladesh Leather & Footwear Expo, organised by the Bangladesh Tanners Association (BTA) at the International Convention City Bashundhara from last Thursday to Saturday.

Several emerging entrepreneurs stood out with inspiring stories of determination and innovation.

Among them was Forida Yesmin Bithi, chief executive officer (CEO) of Deer Leather Goods and Footwear Ltd.

A leather engineering graduate, Bithi transitioned from a technical background into entrepreneurship in 2020 with just Tk 3 lakh, two machines, and one assistant.

Today, she leads a team of nine and manufactures belts, wallets, office bags, handbags, shoes, and sandals. Her products, once catering mainly to local clients, are now reaching Malaysia and Italy via export intermediaries.

She proudly informed that her company is now capable of producing leather goods worth around Tk 12 lakh per month.

"This business has potential, and I believe it will continue to grow," she said.

This year marked her third appearance at the expo. "This platform is vital for visibility—it helps small entrepreneurs like us connect to bigger markets," she added.

Another inspiring figure is Md Tasnim Alam Shahin, founder and CEO of 3 Tech.

Nearly two decades in the industry, Shahin originally aspired to study leather technology, but family responsibilities pushed him toward business.

With Tk 5 lakh in support from his family, he founded 3 Tech in 2007.

His breakthrough came with an order for jackets from Novartis, followed by partnerships with brands like Bata.

The company now employs 35 workers. Prior to the pandemic, it annually exported goods worth over Tk 2 crore.

"The pandemic slowed us down," Shahin acknowledged. "But with the right policies and quality focus, Bangladesh's leather sector can thrive globally again," he said.

Meanwhile, Tahmina Akter Shammi, managing director of ARLENS Leather, brought with her the experience of an entirely different field.

Previously a World Bank project staffer focusing on export readiness in non-readymade garment (RMG) sectors, she shifted to leather after seeing its global promise.

She launched ARLENS Leather in early 2024 with minimal investment and now operates a small-scale production unit in Hazaribagh.

Her products—backpacks, wallets, and accessories—are sold wholesale and retail, generating modest exports via buying houses. Monthly production is worth around Tk 4 lakh.

"I reinvest all profits. For me, it's about creative freedom and building something of my own," Shammi said.

Golam Mursalin, managing partner of Collagen Bangladesh, is part of the growing community of leather technologists entering the sector.

On attaining BSc and MSc degrees in leather engineering, Mursalin started his career at Reliance, a Chinese company, and later joined a Chinese buying house.

In 2017, he began his own business processing hides for export. "My capital was my knowledge and labour," he recalled.

Collagen Bangladesh now operates with four partners—each a leather technologist—and supplies finished leather to top local exporters while directly exporting to Poland.

In 2023, they expanded into production arrangements specialising in small batches of finished leather goods to align with international buyer demands. "Value addition is the future," Mursalin said.

But challenges remain—rawhide perishability, price competitiveness, and high production costs due to the need to import the chemicals used in the process.

"Imported inputs and lack of bonded warehouse facilities make it difficult to compete with countries like Pakistan," he explained.

"Still, more leather engineering graduates are entering this field, and with the right policy support—such as export-linked chemical subsidies—we can do much better," said Mursalin.

All in all, over 130 local and foreign companies participated in the fair, including exporters of leather goods, footwear, machinery, and raw materials.

The vigour of the exporters gives hope, especially because the sector's earnings from sales abroad have slightly dropped to $345 million in the fiscal year 2024–25 from $353 million in the preceding year.

Md Mizanur Rahman, general secretary of the BTA, expressed optimism over the young entrepreneurs in this sector.

"These young entrepreneurs are innovative and well-educated. They understand quality, global trends, and what the market demands. We support their growth—because they represent the next generation of leadership in our sector," he said.

He said as Bangladesh eyes a bigger stake in global leather exports, the rise of technically trained, self-driven entrepreneurs could be the missing link between potential and performance.

From micro-factories in Hazaribagh to export shipments bound for Europe and Southeast Asia, the transformation is already underway, he added.​