Top Leather Sector Stocks in India

Overview of the Leather Industry in India

India’s leather industry is a key player in the global market, contributing 13% of the world’s total leather production. The sector is divided into Tanning, Footwear, Leather Garments, and Accessories, with India being the second-largest producer and consumer of leather footwear. 

The country also holds a strong export position, ranking second in leather garments, third in saddlery & harnesses, and fourth in leather goods globally. In 2024-25 (April-June), leather garments accounted for 6.8% of total leather exports, while footwear dominated exports, reaching $1,152.27 mn in the same period. With increasing demand for premium leather products and sustainable manufacturing processes, companies in the sector are continuously innovating to maintain their competitive edge.

Union Budget 2025-26 Update on Leather Sector

1. 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 crore turnover, and drive exports beyond ₹1.1 lakh crore, boosting India’s global presence.

2. 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. These exemptions lower costs for exporters, making Indian leather more competitive in global markets.

How to Invest in Leather Stocks

Investing in leather stocks involves purchasing shares of publicly traded companies that manufacture or trade leather and leather-related products. The easiest way to start is by researching leather stocks in NSE, identifying the key players in the market, and analysing their financial health and business outlook.

Here’s how to invest in leather industry shares:

1. Identify Leather Companies: Look for listed companies involved in leather manufacturing, footwear, and accessories.
2. Analyse Financials: Evaluate revenue growth, profit margins, debt levels, and market trends.
3. Check Leather Share Price: Track leather company share price movements to identify the best entry points.
4. Review the Leather Shares List: Shortlist stocks based on industry performance and individual company fundamentals.
5. Use Stock Market Platforms: After you open a Demat account, you can invest in leather stocks through different online trading platforms like smallcase and Tickertape.

You can also invest in a basket of leather stocks via smallcase. Simply go to smallcase.com or the smallcase app, and login via your phone number. Then, go to ‘Discover‘ and enter ‘leather’  in the search bar and hit enter. You’ll find an array of stock portfolios that have leather companies. Just pick the one that fits your investment criterion.

Advantages of Investing in Leather Stocks

Investing in leather stocks in NSE has several advantages:

1. Steady Demand: Leather products have a consistent demand both domestically and internationally, ensuring stable revenues for companies in the sector.
2. Export Potential: With India being a global supplier, fluctuations in domestic demand are offset by strong exports.
3. Government Support: The Indian government actively promotes leather exports and production, which benefits listed leather companies.
4. Growing Market: Increasing fashion consciousness and the rise of luxury brands contribute to higher demand for leather goods.

Who Should Invest in Leather Stocks?

Leather industry shares are suitable for various types of investors, including:

• Long-Term Investors: Those looking for gradual wealth accumulation through capital appreciation.
• Sector-Focused Investors: Investors interested in the consumer goods and manufacturing sectors.
• Growth-Oriented Investors: Individuals seeking companies with expansion potential in global markets.
• Export-Oriented Investors: People who prefer industries with high export dependence for diversification benefits.

Risks Associated With Investing in Leather Stocks

While investing in leather stocks has potential, it comes with certain risks:

1. Market Fluctuations: The leather share price can be volatile, impacted by economic conditions and global trade policies.
2. Regulatory Risks: Environmental regulations and compliance requirements for the leather industry can affect profitability.
3. Raw Material Costs: Fluctuations in the price of raw hides and chemicals used in tanning can impact margins.
4. Competition: Domestic and international players compete aggressively, affecting market share and pricing power.
5. Export Dependence: Global demand changes, trade restrictions, or currency fluctuations can impact revenues.

Factors to Consider Before Investing in Leather Stocks

Before investing in leather stocks, consider the following:

1. Company Fundamentals: Look at revenue, earnings growth, and debt-to-equity ratios.
2. Leather Company Share Price Trends: Analyse past performance and future potential.
3. Industry Growth Prospects: Study market trends, global demand, and technological advancements in leather production.
4. Government Policies: Stay updated on policies affecting the leather sector, including subsidies and trade agreements.
5. Diversification Strategy: Avoid investing solely in one sector; instead, balance your portfolio with other industries.

Wrap It Up

The Indian leather industry presents a compelling investment opportunity due to its global standing, steady demand, and government backing. Whether you are a long-term investor or looking for short-term gains, leather industry shares can offer substantial returns if chosen wisely. However, it’s essential to conduct thorough research, monitor the leather shares list, and track leather stocks in NSE to make informed investment decisions. By understanding the risks and market trends, investors can strategically invest in leather stocks to capitalise on the industry’s growth potential.