Photo essay: COVID second wave cripples Dharavi’s popular leather market

SUMMARY

In the heart of Mumbai, Dharavi is home to over 20,000 small and medium businesses and units, especially a once-thriving leather industry here. From bags and jackets to shoes and boxes, a whole host of leather products are manufactured in small units here in Dharavi, which attract customers from across the globe. But one set back after another – second COVID-19 wave being the latest – is threatening the survival of this small-scale industry.

By Shilpa Ranipeta May 21, 2021 3:26:37 PM IST (Published)

Tajuddin Shaikh’s Lotus Leather has seen no orders for the past 2.5 months. Ever since fresh curbs were imposed in Mumbai, his store had to remain closed. Shaikh, who has customers from across the country, also had to shut down his factory as he had no orders to service. Tajuddin has already incurred major debt trying to meet fixed costs such as rent and is unsure if he can stay afloat if the situation doesn’t improve.

For the many leather manufacturers here like Tajuddin, the past few years haven’t been easy. In 2016, the industry was hit badly by demonetisation, then came GST woes, followed by a slowdown and then the first wave of COVID19 in 2020. Now, a second wave and yet another stringent lockdown has dealt a massive blow to the city’s famous leather market.

Most manufacturers and workers returned to their hometowns even before the restrictions in Mumbai were imposed. Those who stayed back are now leaving as they struggle to pay for food, house rent and bills with no income. While nearly 70% of the factories are currently closed, many don’t intend to return to Mumbai and so a majority of these units are likely to shut down for good.

Unlike the 2020 lockdown, factories can remain open under the current curbs in Mumbai. But even though people are allowed to work in the small units in Dharavi, lack of workforce and whatever orders they have been receiving have proven hard to fulfill amid shortage of raw materials like canvas, and the fittings and runners that go on their products.

Some manufacturers are adopting online platforms hoping to make their business pandemic and lockdown-proof, and to be able to reach a wider audience. While some have been selling through online platforms like Flipkart and Amazon, many are now trying to sign up. But the process hasn’t been smooth amid the restrictions. For those already selling online, order volume are scant and don’t give them good margins, they say.

Leather manufacturers are now hoping for some financial support for the industry from the state government or are hoping for waivers on fixed costs such as rent and electricity. Though business could resume once restrictions ease, leather manufacturers say consumer demand will take a lot longer to recover this time and don’t see their business picking up pace anytime soon.