Leather Stocks in India 2025

What are Leather Stocks?

Leather stocks in India refer to shares of companies that operate in the leather and leather products industry, including the manufacturing of footwear, bags, belts, gloves, jackets, and other accessories.

Overview of Top Leather Stocks in India

• Bata India Ltd: Founded in 1931, Bata India Ltd is a subsidiary of the global Bata Corporation. With its headquarters in Gurugram, Haryana, Bata India has grown into one of the largest footwear retailers and manufacturers in India.
• Metro Brands Ltd: Metro Brands Ltd was founded in 1977 and is headquartered in Mumbai, Maharashtra. It is one of India’s leading footwear retail companies, operating well-known brands like Metro Shoes, Mochi, Walkway, and FitFlop
• Relaxo Footwears Ltd: Founded in 1976 and headquartered in New Delhi, Relaxo Footwears Ltd is one of India’s largest footwear manufacturers, both by volume and revenue. The company offers a wide array of footwear under various brands, including Relaxo, Sparx, Flite, Bahamas, and Schoolmate
• Campus Activewear Ltd: Campus Activewear Ltd was established in 2005 and is headquartered in Gurugram, Haryana. Known for its sports and athleisure footwear, Campus Activewear is one of the largest and fastest-growing brands in India.
• Mayur Uniquoters Ltd: Founded in 1994 and headquartered in Jaipur, Rajasthan, Mayur Uniquoters Ltd is a leading manufacturer of synthetic leather in India. The company specialises in producing artificial leather for various industries, including footwear, automotive, and upholstery

Union Budget 2025 Update on the Leather Sector

• Focus Product Scheme for Footwear & Leather: The government introduced a Focus Product Scheme to enhance the productivity, quality, and exports of the leather and footwear industry. This initiative aims to create 22 lakh jobs, achieve a ₹4 lakh cr. turnover, and drive exports beyond ₹1.1 lakh cr.
• Export Promotion Measures: To strengthen exports, the Basic Customs Duty (BCD) on Wet Blue leather has been fully exempted, while Crust leather is now free from the 20% export duty.

How to Invest in Leather Sector Stocks?

Here is how you can invest in the best leather shares in India:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Conduct thorough research into the top leather sector stocks in India using Tickertape Stocks Screener. The screener offers over 200 built-in filters, allowing investors to select parameters and generate a list of stocks.
3. Place a ‘Buy’ Order on the top leather stocks in India that align with your investment thesis.

Benefits of Investing in Leather Stocks

• Significant Export Earnings: India’s leather exports reached about $5.26 bn in the 2022-23 fiscal year, making it one of the top 10 foreign exchange earners. With global demand rising, Indian leather companies stand to benefit from expanding international markets.
• Focus on Sustainable Production: Many leather companies are adopting sustainable practices, like using eco-friendly leather and ethical production methods. This trend helps improve a company’s reputation and meets the growing demand for sustainable products among consumers.
• Growing Domestic Market: The Indian leather goods market was valued at $15.13 bn in 2023 and is expected to grow to $25.48 bn by 2030, at a rate of 7.7% annually. Additionally, both genuine and vegan leather products are gaining popularity, which will further boost the sector.

Risks of Investing in Leather Stocks in India

• Leather Supply Chain Disruptions: The leather industry depends on raw materials like animal hides and synthetic alternatives. Any fluctuations in their prices or disruptions in supply can increase production costs and reduce profit margins for companies.
• Environmental Concerns: Leather production often involves tanning processes that use harmful chemicals, which can lead to environmental pollution. Companies not adopting eco-friendly practices may face legal issues, fines, and damage to their reputation.
• Cyclic Demand: The leather industry is affected by economic cycles. During slowdowns or recessions, people spend less on non-essential goods like leather products, which can reduce sales and affect a company’s revenue and growth.

Factors to Consider Before Investing in Leather Stocks in India

• Industry Growth and Demand Trends: The leather industry benefits from global demand, with India being a top exporter. However, shifting consumer preferences for sustainable and synthetic alternatives may affect traditional leather demand, influencing long-term growth prospects.
• Environmental and Regulatory Risks: The leather industry faces environmental challenges, especially with tanning processes. Stricter regulations and increasing demand for sustainable practices mean companies must adapt to avoid fines and reputational damage, influencing long-term profitability.
• Technological Advancements and Innovation: Technological innovations in manufacturing, such as 3D printing and synthetic materials, are transforming the leather industry. Companies that adopt new technologies and sustainable practices are likely to stay competitive and meet shifting consumer demands.