Back in early July we asked via our website for feedback from the leather industry as to who are currently the most important and influential tanners on the planet. The task seemed quite straightforward at first but once we started getting some responses back from everyone suddenly a top 50 might have been a better idea! Below is the final list of 20, which we have run in alphabetical order relating to surname.
When looking through the list I am sure that you'll agree that all are major players in our industry and have been leading the way with new technologies, fashion and design, environmental control and modern working techniques and practices for many years. All are true entrepreneurs and should be celebrated as a success for the tanning industry.
In making the final selection we on the magazine looked at simple, straightforward criteria and choose what we considered to be the most worthy recipients to the inaugural Leather International magazine Power List Top 20. However, there are a number of individuals who may well be missing from this list but have just missed out this time around. As we intend to publish the Power List on an annual basis from now on there will be further opportunities to suggest suitable personalities in the future.
It is now up to you ‘the reader' to choose your own personal tanner of tanners from the list below. A debate, which I am sure, will vary greatly from one person to the next.
The criteria when choosing the Power List final 20:
The most senior member of a large tanning group that has day-to-day involvement in the business.
International tanners/groups with plants in different countries and regions.
Company/group managing director level and above.
Suppliers to the major brands (volume and/or luxury).
Owners/senior person of single site mega-tannery's with high production volumes.
People who have business power in the leather industry, decision makers and political influence where appropriate.
Major suppliers of either or all of the following: upholstery, footwear, garment and leathergoods leathers.
Who are the major players on the world stage: from Asia, South & North America, Europe, Africa & Middle East and the Indian sub-continent.
We were NOT looking for senior figures from any parent companies not connected to tanning nor chemical/machinery suppliers, traders, associations or those connected to trade fairs, research associations or other trade bodies.
Thomas Bader, Bader Leder
Marcel Branaa, Zenda Leather Group
Jonathan Clark, PrimeAsia
Chris Daniel, Tyson Foods Inc
Andres Galperin, Sadesa
Mohammad Hashim, K H Group
O K Kaul, Tata International Ltd (TIL)
Michael Lu, Henan Prosper Skins & Leather Enterprise Co Ltd
Bruno and Santo Mastrotto, Mastrotto Group
Rino Mastrotto, Rino Mastrotto Group
Robert B Moore Jr, Shanghai Richina Leather (SRL) a subsidiary of Richina Pacific Ltd.
Panos Mytaros, Ecco Leather BV
Pin Yong Phua, HTL (Hwa Tat Lee) International Holdings
Magister Schmidt, Boxmark World Leather (subsidiary of H Schmidt Holding GmbH)
Thomas Schneider, ISA Tan Tec
Muhammad Naseem Shafi, Shafi Group of Industries
Leonardo Swirski, Bertin Group SA, Leather Division (Bracol)
Ongart Thumrongsakunvong, Interhides Public Co Ltd (IHL)
Jen Yang, Tyche Leather Group and co-owner of Sun Lots and Tonghong tanneries
Zhu Zhang-Jin, Zhejiang Kasen Industrial Co Ltd
Ongart Thumrongsakunvong, Interhides Public Co Ltd (IHL)
Position: Managing director
Headquarters: Bangpoo district, Samutprakarn province, Thailand
Tanneries and locations: IHL have a total of six production sites all located in the Bangpoo district of Samutprakarn province, Thailand. Of the six sites two are tanneries, two are finishing plants and the remaining two factories are cutting and sewing facilities for automotive upholstery leather seats and components.
Production: IHL take wet-blue and wet-white tanned material and process 3,500-4,000 hides a day into finished leather mainly for the OEM automotive upholstery business. The finished leather is cut, sewn and tested on site before shipment to the customer.
Tannery employees: 1300
Key customers/brands: Toyota, Nissan, Honda, Ford, General Motors, Mazda, Mitsubishi
Other information: Interhides were established in 1945 as the Srinakorn Tannery making furniture upholstery and Ongart Thumrongsakunvong is the third generation of his family to run the business. A pioneer in the Thai tanning industry he recognised early on to transform the business into an OEM automotive upholstery tannery and changed the company name to Inter-Hides & Leather in 1992. He then floated the business on the Thai stock exchange in 2005 and the present day business Interhides Public Co Ltd was formed.
Interhides are also a leading tanner in terms of worker welfare, which is viewed as a valuable asset. Employees at the company have access to a child nursery, free food and drink at the company canteen and free transport to and from the six factory sites.
Economic crisis in the United States has resulted in global economic slowdown anddecline in total production of automotive industry around the world. However, in Asia the auto industry has recovered earlier than any other continents and gradually rose significantly in the 3rd quarter of this year. That reflects the fact that the economic foundation of Asia is quite different from other continents and that make the Asia’s economic recovered faster than what has been expected. When considering the automotive market of Thailand for the next year it is expected that it will grow around 5-10% from the year 2009.
It is expected that the sales of Interhides Public Company Limited. for next year will increase approximately 10-20% from the year 2009 due to the economic recovery of Asian market. Our products are well accepted by local automobile companies and we continue to receive increasing orders. The main objective for year 2010 will be to achieve cost reduction level that will strengthen our profit outlook.
Lastly, the Board of Directors would like to thanks all parties involved, shareholders, customers, partners, employees, and financial institutions for their constant supports. The company will maintain the policy of constant development and transparency in operation and provide maximum benefits to the society.
(Mr. Thira Wipuchanin) Chairman of the Board
(Mr. Ongart Thumrongsakunvong) Managing Director
The Company principally engaged in the manufacture and distribution of leather coverings for car seat using processed cow or buffalo raw hides bleached and dyed, then cut and/or sewed to produce finished products. The complete cycle of products and services is implemented according to the customer’s order. Products and services can be divided into seven major groups:
Cut part - Tanned leather will be cut in shape of the tailor-made drawing as ordered by the customer.
Trim cover - It is for leather car seats and other leather accessories, mostly receiving order from first tier suppliers.
Steering Wheels and Gear knobs - Sewing service for steering wheels and gear knobs
Finished Leather - For produce car seat and other leather accessories such as Steering wheel and Gear knob. The leather will be cut and sewed in a shape of car seat by customer.
Finishing service - Supplier provide all materials related to production in finishing process. The Company will produce the finishing product according to supplier’s order and process.
Tannery service - Supplier provide all materials related to production in Tannery process. The Company will produce the tannery product according to supplier’s order and process.
Other Product - By product from production process such as lime split from tanning process and scrap leather from cutting process
The Company's product is certified with ISO/TS 16949:2002 in terms of production and the overall operating system from TUV Rheinland Group, Germany, a certification that is well accepted in the automotive industry. Most of the Company’s production is made to order from both domestic and foreign customers. Each customer can order leather products in various shapes and usage types such as cleaning leather and Chrome free leather. The Company, able to produce all various leather products and meet every need, will attentively work with carmakers to come up with the design leather products for each car model. The Company's advantages are the strong management team and high technology machinery and equipment which allow the Company to produce up to 30 million square feet per year or around 900,000 pieces per year. In 2009, the Company had the actual production of 24.2 million square feet which accounted for 81% of the total capacity.
Revenue Proportion for Each Product Line or Business Unit
Table of the Company’s Revenue Structure from 2007 – 2009
(Unit: Million Baht)
Revenue by product
Operated by
% of Shareholding
2007
2008
2009
Amount
%
Amount
%
Amount
%
Cut part
IHL
100%
715
47%
894
52%
619
47%
Sewing
IHL
100%
595
39%
636
37%
467
36%
Steering wheel and gear knob
IHL
100%
57
4%
32
2%
20
1%
Finished leather
IHL
100%
86
6%
83
5%
65
5%
Service
IHL
100%
27
2%
Other products
IHL
100%
66
4%
74
4%
115
9%
TOTAL
1,519
100%
1,719
100%
1,313
100%
The company’s main customer is the producer of car seat leather and interior leather parts for car accessories (First Tier Original Equipment Manufacturers or 1st Tier OEM) of the leading carmakers such as Toyota, Honda, Nissan, Ford, Mitsubishi, Isuzu, Mazda, Subaru, and so on. However before receiving the order, the Company has to be chosen from these carmakers to be the second tier original equipment manufacture (or 2nd Tier OEM) because they have to research and develop the products together before they can sell each model of the car in each country so that the Company is trusted for the quality of the products.
Moreover, the Company has to show confidence in the capacity of the production, the standard of the products, and the punctuality in delivering products to the customers because the nature of the Company’s operation is planning well ahead in advance in order to deliver car seat leather and other accessories to the First Tier OEM punctually for the later production line. As the Second Tier OEM, the Company can present the products to other manufacturers of car seat leather and accessories of any car’s model directly around the globe, not only in Thailand, within the model life of that car’s model. In general, each car’s model has the model life of 4-8 years.
The Company has to bid for the product’s price which is the business practice with other manufacturers. The Company can export its products through two channels which are
indirect export in which the seat makers using the Company’s products export to other countries
direct export in which the Company itself would present the products to the customers in other countries. Hence, selling products in other countries is considered only the direct export from the Company.
