3 min
18-April-2025
The leather industry is one of India’s oldest and most established sectors, contributing significantly to the economy through exports, employment, and domestic consumption. With India being the second-largest producer of footwear globally, the industry benefits from abundant raw materials and skilled labour. In addition, the government’s focus on modernising leather manufacturing and its various initiatives, such as the Indian Footwear, Leather, and Accessories Development Programme (IFLADP), have bolstered the sector’s growth.
Investing in leather stocks offers opportunities to capitalise on this thriving industry. Companies in the space range from premium leather footwear manufacturers to synthetic leather producers, catering to both domestic and global markets. In this guide, we’ll dive into the popular leather stocks in India, their market performance, and the factors to consider before investing.
These stocks are attractive due to the industry’s resilience and strong growth potential. Many companies, such as Metro Brands, Bata India, and Relaxo Footwears, have consistently shown strong financial results, reflecting their market leadership and innovation.
Export dependency: Companies reliant on international markets may see reduced revenues during global slowdowns.
Operational agility: Firms with diversified offerings, such as synthetic leather and budget products, often perform better.
Cost optimisation: Companies that effectively manage operating costs can sustain profitability during challenging times.
Growing domestic market: Rising disposable incomes and lifestyle upgrades boost demand for leather products.
Export potential: India’s leather exports account for a significant share of global trade, ensuring consistent growth.
Government support: Subsidies and incentives for leather manufacturing reduce operational costs and enhance profitability.
Diverse portfolio opportunities: Leather stocks span premium, mid-range, and budget segments, offering diversification.
Sustainability trends: Many leather companies are adopting eco-friendly practices, appealing to environmentally conscious investors.
Cyclical nature: The sector’s performance often depends on economic stability, making it vulnerable to recessions.
Global competition: Countries like China and Vietnam pose significant competition in the global leather market.
Regulatory hurdles: Stringent environmental regulations can increase operational costs for tanneries and manufacturers.
Currency fluctuations: Companies heavily reliant on exports may suffer due to rupee depreciation or forex volatility.
Investing in leather stocks offers opportunities to capitalise on this thriving industry. Companies in the space range from premium leather footwear manufacturers to synthetic leather producers, catering to both domestic and global markets. In this guide, we’ll dive into the popular leather stocks in India, their market performance, and the factors to consider before investing.
Popular leather stocks
Leather stocks represent shares of companies engaged in manufacturing, exporting, and retailing leather products, including footwear, garments, and accessories. India’s leather sector stands out due to its competitive pricing, quality products, and vast export market.These stocks are attractive due to the industry’s resilience and strong growth potential. Many companies, such as Metro Brands, Bata India, and Relaxo Footwears, have consistently shown strong financial results, reflecting their market leadership and innovation.
List of leather stocks in India
Here is a list of leading leather companies in India. These firms are key contributors to the country’s thriving leather industry, known for their diverse product portfolios and market presence. They present excellent investment opportunities for those looking to capitalise on the growth potential of this dynamic sector. Their performance reflects the strength of India’s position in the global leather market.| Company Name | Market Cap (Rs. crore) |
| Metro Brands Ltd | 30,100 |
| Relaxo Footwears Ltd | 28,000 |
| Bata India Ltd | 25,500 |
| Liberty Shoes Ltd | 700 |
| Khadim India Ltd | 400 |
| Sreeleathers Ltd | 350 |
| Mirza International Ltd | 1,800 |
| Super House Ltd | 90 |
| Phoenix International Ltd | 75 |
| Mayur Uniquoters | 3,000 |
| Bhartiya Intl. | 400 |
| Lehar Footwears | 55 |
| Zenith Exports | 50 |
| Super Tannery | 45 |
| AKI India | 80 |
| Amin Tannery | 40 |
| NB Footwear | 10 |
Overview of leather stocks in India
India’s leather stocks represent businesses with diverse offerings, from premium footwear to synthetic leather manufacturing. These companies have thrived on India’s rich resources, skilled workforce, and export advantages. Government initiatives like the Leather Development Programme and favourable policies have further boosted their growth.Metro Brands Ltd
Metro Brands Ltd is a leading Indian footwear retailer known for its wide range of high-quality shoes, bags, and accessories. With a strong retail presence across the country, Metro caters to diverse customer needs, from premium to affordable footwear. The company’s consistent focus on quality and innovation has helped it establish a loyal customer base. It has also collaborated with renowned international brands, enhancing its portfolio. As one of the most recognised names in the Indian retail footwear sector, Metro Brands enjoys a strong reputation for reliability and style, making it a popular choice among investors and consumers alike.Relaxo Footwears Ltd
Relaxo Footwears Ltd is one of India’s largest footwear manufacturers, offering products that combine comfort, durability, and affordability. The company caters to a broad customer base with brands like Relaxo, Sparx, Flite, and Bahamas, which are household names in the country. Known for its robust distribution network and focus on quality, Relaxo is a trusted name in the mid-market segment. It has a significant market presence, especially in tier-II and tier-III cities, ensuring a consistent demand for its products. Relaxo’s affordability and mass appeal make it a dominant player in India’s footwear industry.Bata India Ltd
Bata India Ltd is a household name in the footwear industry, known for its durable, stylish, and affordable shoes. A subsidiary of the global Bata Shoe Organisation, it has been a trusted brand in India for decades. The company operates a vast network of retail stores and offers a wide range of footwear catering to all age groups. With an emphasis on innovation and quality, Bata India has successfully expanded its product lines to include formal, casual, and sportswear segments. Its strong brand equity and widespread recognition make it a preferred choice among Indian customers.Liberty Shoes Ltd
Liberty Shoes Ltd is a prominent Indian footwear company recognised for its diverse product range, catering to men, women, and children. Established with a vision to provide quality footwear at affordable prices, Liberty has built a strong reputation for comfort and style. The brand is especially known for its formal and semi-formal shoes, which appeal to working professionals. With an extensive retail and online presence, Liberty has positioned itself as a trusted choice for customers seeking value for money. Its commitment to innovation and customer satisfaction underpins its strong position in the market.Khadim India Ltd
Khadim India Ltd is a leading footwear retailer and manufacturer, particularly known for its value-for-money products. The company operates through two primary segments: retail and distribution. Khadim is well-known in eastern India and has been expanding its presence nationwide. Its product range includes casual, formal, and sports shoes that cater to a wide audience. The company’s focus on affordability and accessibility has made it a popular choice among middle-income consumers. With an evolving brand strategy, Khadim aims to strengthen its position in the highly competitive Indian footwear market.Sreeleathers Ltd
Sreeleathers Ltd is an iconic Indian footwear brand celebrated for its affordability and durability. It primarily targets value-conscious consumers, offering a diverse range of products, including shoes, belts, and wallets. Sreeleathers is particularly popular in eastern and northern India, with a robust retail presence in tier-II and tier-III cities. The company’s emphasis on quality and competitive pricing has helped it build a loyal customer base. Known for its consistent performance and reputation, Sreeleathers continues to play a significant role in India’s growing footwear sector.Mirza International Ltd
Mirza International Ltd is one of India’s leading exporters of leather footwear, primarily catering to international markets. The company owns popular domestic brands like Red Tape, known for its stylish and premium products. Mirza International combines traditional craftsmanship with modern designs, appealing to a global audience. It has a strong presence in both domestic and export markets, driven by its quality-focused approach. With its flagship brand Red Tape gaining traction in India, the company is strengthening its position in the leather industry.Super House Ltd
Super House Ltd is a versatile leather company involved in the manufacturing and export of footwear, leather goods, and finished leather. Known for its quality and craftsmanship, Super House serves a global clientele while maintaining a strong domestic presence. The company specialises in premium leather products and has diversified into segments like safety footwear. Its robust supply chain and focus on sustainable practices enhance its appeal among modern consumers. Super House continues to be a prominent name in India’s leather industry.Phoenix International Ltd
Phoenix International Ltd is a reputed name in the leather manufacturing sector, known for its high-quality leather goods and accessories. The company primarily focuses on exports, serving a diverse global market with its innovative and stylish offerings. Phoenix is recognised for its commitment to quality and its ability to cater to premium segments. By maintaining strong relationships with international clients, the company has solidified its position as a reliable player in the leather industry.Mayur Uniquoters
Mayur Uniquoters is a leading manufacturer of synthetic leather, catering to industries like footwear, automotive, and furniture. The company is renowned for its innovative approach and ability to provide cost-effective alternatives to genuine leather. Mayur Uniquoters is a preferred supplier for many domestic and global brands, reflecting its commitment to quality and sustainability. With a strong focus on R&D, the company has carved a niche in the synthetic leather market, making it a key player in India’s leather industry.What are leather stocks in India?
Leather stocks in India represent companies involved in producing, exporting, or retailing leather products such as footwear, apparel, and accessories. These companies play a crucial role in India's leather industry, which is a significant contributor to exports and employment. Investing in these stocks allows individuals to capitalise on the growth and global demand within this thriving sector.Features of popular leather stocks in India
Investing in leather stocks offers multiple advantages:- High growth potential: Rising domestic consumption and strong export demand drive the sector's growth.
- Government support: Incentives like subsidies and tax benefits enhance profitability.
- Product diversity: Companies cater to various market segments, from luxury to budget.
- Global presence: Many firms have significant export footprints, tapping into international demand.
Factors to consider when investing in leather industry stocks in India
Key factors to evaluate before investing include:- Financial health: Analyse revenue, profit margins, and debt levels.
- Market positioning: Assess the company’s brand strength and competitive edge.
- Export dependency: Be cautious with firms overly reliant on global markets.
- Government policies: Verify available incentives and how they impact profitability.
How to invest in leather stocks in India NSE?
Follow these steps to invest in leather stocks on the NSE:- Research: Study financial reports, market trends, and sector analysis.
- Open a Demat account: Essential for trading stocks in India.
- Analyse valuation: Use tools like P/E ratio to gauge stock value.
- Monitor market trends: Time your investment based on market conditions.
Impact of government policies on leather stocks in India NSE
Government policies significantly benefit leather stocks. Initiatives like the Indian Footwear Leather and Accessories Development Programme (IFLADP) offer financial support, enhancing efficiency. Export-friendly policies further boost revenues for top companies. Additionally, subsidies for manufacturing and infrastructure development strengthen India’s position as a global leather hub, increasing the growth prospects for listed firms.How leather sector stocks perform in economic downturns?
The leather sector is cyclical, which makes it sensitive to economic downturns. During recessions or financial crises, consumer spending tends to drop, impacting the demand for leather products like footwear and luxury accessories. However, not all segments are equally affected. Companies catering to essential or affordable footwear markets often maintain steady sales, whereas premium and export-oriented segments face sharper declines.Export dependency: Companies reliant on international markets may see reduced revenues during global slowdowns.
Operational agility: Firms with diversified offerings, such as synthetic leather and budget products, often perform better.
Cost optimisation: Companies that effectively manage operating costs can sustain profitability during challenging times.
Advantages of investing in leather stocks
Investing in leather stocks offers various benefits, particularly for Indian investors:Growing domestic market: Rising disposable incomes and lifestyle upgrades boost demand for leather products.
Export potential: India’s leather exports account for a significant share of global trade, ensuring consistent growth.
Government support: Subsidies and incentives for leather manufacturing reduce operational costs and enhance profitability.
Diverse portfolio opportunities: Leather stocks span premium, mid-range, and budget segments, offering diversification.
Sustainability trends: Many leather companies are adopting eco-friendly practices, appealing to environmentally conscious investors.
Risks of investing in leather stocks
While leather stocks present lucrative opportunities, they come with certain risks:Cyclical nature: The sector’s performance often depends on economic stability, making it vulnerable to recessions.
Global competition: Countries like China and Vietnam pose significant competition in the global leather market.
Regulatory hurdles: Stringent environmental regulations can increase operational costs for tanneries and manufacturers.
Currency fluctuations: Companies heavily reliant on exports may suffer due to rupee depreciation or forex volatility.
Leather sector stocks GDP contribution
The leather sector significantly contributes to India’s GDP by being a major employment generator and foreign exchange earner. India is one of the world’s largest exporters of leather products, with the industry accounting for nearly Rs. 40,000 crore in annual exports. Additionally, the sector provides direct employment to over 4 million people, with 30% being women. This contribution underscores its importance in driving both economic growth and social development.Who should invest in leather stocks in NSE?
Investing in leather stocks may suit specific investor profiles:- Long-term investors: Those seeking steady returns from companies with a proven track record in the leather sector.
- Risk-tolerant investors: Given the cyclical nature, it is ideal for investors who can handle market volatility.
- Ethical investors: Many leather companies are adopting sustainable and environmentally friendly practices.
- Diversification seekers: Leather stocks can balance portfolios due to their mix of premium and affordable product offerings.
