No.07/EXH/MIPEL-SEP-2010                                                                                                                            April 20, 2010
 
Members of the Council, (Exporters of Leather Goods / Accessories)
                                                                                                                                                   IMPORTANT & IMMEDIATE
Dear Members,  

Sub: 98th MIPEL – The Bag Show, Milan , Italy , September 19-22, 2010  

As members are aware MIPEL – The Bag Show, Milan, Italy,  is the largest and leading  international Fair specialized for  for leather-goods, bags, luggage, sacks, wallets and the full spectrum of leather accessories. It is held twice in a year - March and September in the futuristic Fieramilano Trade Fair and exhibition complex in Milan, a global fashion and design capital. The 98th Edition of MIPEL-The Bag Show will be held in September 2010. For more details please visit website of the fair organizer at www.mipel.com 

Display Product: Leather Goods, Bags, Luggage, Sacks, Wallets, Purses and  
                             Accessories. (Spring-Summer Collections 2010-11)

Dates :                 19th – 22nd , September 2010 (Sunday to Wednesday)
Venue:                 Fiera Milano in Rho, Milan Italy .  

About the Italian Market :

Italy is the 3rd largest importer in global leather trade with total imports of about US$ 9469.67 Million (2007). Italy has a strong traditional trade relationship with India in Leather sector.

Italy is the second largest importer of Indian leather and leather products, accounting for 12.82% of its export share during 2008-09. India’s Share in Italy’s total import of leather and leather products was 5.18% (2007).

Italy is the sixth largest importer of leather goods and accessories in the world with total imports to the tune of US.881.88 million, accounting for a share of 5.52% in the global imports of leather goods and accessories valued at US.$.15974.27 million (2007).

India’s export of leather goods and accessories to Italy has been increasing over last 5 years and reached US.$.67.51  million in 2008-09. However, India’s share in Italy’s total imports of Leather goods and accessories is only 6.46% only. Hence there is enormous scope for Indian leather products sector to further increase exports of leather goods & accessories to Italy. 

Council’s participation:   The Council has been participating in MIPEL Fair since March 2002 in both edition of March & September every year. 

In March 2010 edition, the exhibition has closed with a positive results. 427 exhibitors participated and 16163 buyers attended the Show, out of which 8148 from abroad and 8015 from Italy.    

Considering the high cost of participation especially due to space rent of about Euro 396 per sq mtrs , the small exporters find it difficult to participate in this fair. It is the highest among all European Fairs. Added to this, there are other charges such as Registration fee, catalogue fee, Insurance fees payable to fair organizer, which works out to Euro 1000 per company.

Taking into account all these payments and including Stand Construction and other organisation expenses, the cost works out to about Rs.31,500/- per sq.mtr.(approx) 

Facilitation of Members participation under Market Access Initiative Scheme (MAIS):
 In order to support the Indian manufacturers/exporters of leather goods & accessories, who are predominantly from the SME sector, to take part in this important specialized fair for leather goods & accessories in Europe, the Council had approached Dept of Commerce to provide necessary funding support to organize the participation in Mipel Fair September 2010 edition under MAI Scheme.  

The Council’s proposal for facilitation of members participation in Mipel Fair September 2010 edition was favorably considered by Dept of Commerce under MAI scheme. The Council has planned to organize participation of member exporters in 98th MIPEL scheduled from 19-22, September 2010 at reduced participation cost to the maximum extent.

Tentative Participation cost:  According to cost of space, construction other services etc the tentative participation cost works out to Rs. 3,78,000/- for a minimum stand size of 12 sq mtrs. The final participation cost will be worked out after the event. 

Since the participation in the Mipel Fair has been planned to be organized with funding support under MAI scheme, the subsidized cost of participation will be about Rs.2,20,000/-  for a minimum size of 12 sq mtr stand.

Members may kindly note that in view of participation in this Fair is being organized with funding support under MAI scheme, no assistance under MDA scheme will be available to individual exporters. 

Hence member-exporters are requested to avail the opportunity and take part in the Mipel Fair, September 2010 edition. Please send the duly filled in Application form along with the initial participation cost of Rs.2,20,000/- by Cheque/DD drawn in favour of Council for Leather Exports. 

Thrs may be sent to either Council’s Head office in Chennai or Regional Offices at Delhi , Kanpur , Mumbai, Kolkata & Agra on or before 10th May 2010.   

It may kindly be noted that Stands to individual participating companies are allocated by MIPEL Fair organizer themselves, considering the size & dimensions of stands.  Hall layout & other technical aspects.  Hence, the stands are not allotted by the Council in MIPEL Fair.

Please also note that participants will have to arrange the Italian Visa on their own. However, the Council will arrange for the invitation letter from the fair organizer to facilitate obtaining of visas to participants.  Kindly note that non-issuance of Visa will not be considered as a valid ground for withdrawal subsequent to confirmation of participation. Hence, withdrawal from participation after confirmation will not be allowed.  

With best regards,
Yours sincerely,

Ali Ahmed Khan
Executive Director  

Note:  
1.   Kindly note that support under MAI scheme is admissible only for 12 sq mtr booth to ensure equal availing of assistance under this scheme by all participants. Hence no additional booth for group companies will be allotted.  

2. In case additional booth is required for companies in the same group, the same will be allotted at the actual cost based on various payments made towards Space cost, Registration fee, other charges payable to Fair organizer including stand construction charges and other organizing expenses. (In other words participation cost will be without funding support under MAI scheme).

3.Similarly, members willing to have more than 12 sq mtr space will be required to pay additional space and construction cost which will be without funding support of MAI scheme. This will again be based on actual payments made.

4.According to the estimates, the space cost per sq.mtr works out to Rs.31,500/-. Hence, those who desire to have more than 12 sq.mtr space have to remit Rs.2,20,000/- plus additional space cost at Rs.31,500/- per sq.mtr. For eg: for 16 sq.mtr booth, the participation fees will be Rs.2,20,000/- (for minimum of 12 sq.mtr) plus Rs.1,26,000/- (for additional 4 sq.mtr), thus totaling to Rs.3,46,000/-.

5. For your ready reference, about the Cost of Participation for different size of booths, the information is appended below:

Stand Size (in Sq.Mtrs)	Basic Subsidized cost of 12 sq mtrs	Additional Cost	Total Cost
12	Rs.2,20,000	Nil	Rs.2,20,000
16	Rs.2,20,000	Rs.1,26,000	Rs.3,46,000
20	Rs.2,20,000	Rs.2,52,000	Rs.4,72,000
24	Rs.2,20,000	Rs.3,78,000	Rs.5,98,000

6. Since the MIPEL Fair organizer always been insisting for earliest confirmation of space booking, the Council is required to make final space booking for CLE India Pavilion at the earliest possible.   Hence, the members are requested to send their space confirmation along with full payment of stipulated contribution before the prescribed date of 10th May 2010, without fail.  Based on the confirmation of payment received by 10th May 2010 the Council will book the space with MIPEL Fair organizer and will seek better location for the participating companies.

7. Those members participating for the first time (New Companies) there are certain formalities /procedures prescribed by the MIPEL Fair Organizer.  Based on compliance to such formalities, the MIPEL Fair organizer will be allotting stands to such new companies.  The details of formalities/procedures will be informed to interested New Companies on receipt of their confirmation of participation /remittance of payment.

 

Application