T E Narasimhan / Chennai September 21, 2010, 0:23 IST A sizeable number of small and medium units in the leather industry in Tamil Nadu have closed shop. Regulatory issues such as environmental standards and a lack of tax incentives has hit the tanning industry in the major districts of Dindigual and Tiruchy and other tanning hubs in Tamil Nadu. According to industry sources, the number of units in Dindigual has come down by 80 per cent, while in Tiruchy it has fallen by 85 per cent. Likewise, Ambur, Vaniambadi and other clusters have also reported closure of tanneries. Until three or four years back, Tamil Nadu accounted for 78 per cent of the pan-India tanning industry, which is estimated to be around Rs 8,000-9,000 crore in size. This has now come down to 55 per cent, said Rafeeque Ahmed, president of the All India Skins & Hide Tanners Merchant Association (AISHTMA), a 93-year-old association that represents tanners.