Industry Overview
The footwear sector is one of the most important segments of the Indian leather industry and serves as a major driver of its overall growth. India is the world's second-largest footwear producer after China, accounting for approximately 13% of global footwear production. The country manufactures a wide range of footwear categories, including leather footwear, leather shoe uppers, and non-leather footwear, with the majority of production serving domestic demand while a significant quantity is exported to international markets.
Major footwear manufacturing hubs in India include Chennai, Ranipet, Ambur, Mumbai, Kanpur, Jalandhar, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut, and Ernakulam. The industry provides employment to around 1.10 million people and supports a diverse manufacturing ecosystem.
India exports a broad portfolio of footwear products, including dress shoes, casual shoes, moccasins, sports shoes, horrachies, ballerinas, boots, sandals, and chappals manufactured from leather, rubber, plastic, PVC, and other materials. Over the years, the industry has evolved from a predominantly cottage-based activity into a well-developed small- and medium-scale manufacturing sector. As footwear has transformed from a luxury item into an essential everyday product, increasing consumer demand has continued to support the expansion and modernization of the industry.
Cost Estimation
| Particular | Value |
|---|---|
| Plant Capacity | 1000 Pairs/Day |
| Land & Building (5600 sq.mt.) | Rs. 2.31 Cr |
| Plant & Machinery | Rs. 58 Lac |
| Working Capital for 3 Months | Rs. 2.23 Cr |
| Total Capital Investment | Rs. 5.23 Cr |
| Rate of Return | 42% |
| Break Even Point | 49% |
Content Index
- INTRODUCTION
- TYPE OF FOOTWEAR
- BRANDS SOURCED FROM INDIA
- PROPERTIES OF FOOTWEAR
- USE & SCOPE
- HOWEVER, DEMAND OF FOOTWEAR DEPENDS UPON THE FOLLOWING FACTORS.
- B.I.S. SPECIFICATIONS
- MARKET SURVEY
- STRUCTURE OF THE INDUSTRY
- TABLE 1 - PRODUCTION BASE OF LEATHER AND LEATHER PRODUCTS
- HISTORICAL REVIEW
- TABLE 2 - PERFORMANCE OF INDIAN LEATHER INDUSTRY (IN US$)
- CURRENT OUTPUT AND EXPORTS
- TABLE 3 - CURRENT EXPORT BASKET OF INDIAN LEATHER INDUSTRY
- INDIA’S FOOTWEAR EXPORT GROWTH OVER THE LAST FOUR DECADES
- MAJOR MARKETS:
- A STATEMENT SHOWING INDIA’S EXPORT OF FOOTWEAR TO DIFFERENT COUNTRIES:
- FUTURE TRENDS:-
- INDIAN FOOTWEAR INDUSTRY POISED FOR GROWTH
- LEATHER FOOTWEAR INDUSTRY IN DHAKA
- LOCATIONAL CONCENTRATION
- GROWTH OF LEATHER FOOTWEAR INDUSTRY
- MARKET POSITION OF LEATHER SHOES IN ETHIOPIA
- DOMESTIC PRODUCTION, IMPORT AND EXPORT OF LEATHER SHOE (`000 PAIRS)
- DEMAND PROJECTION
- DEMAND PROJECTION FOR LEATHER SHOES (‘000 PAIRS)
- PRESENT MANUFACTURERS OF SYNTHETIC SANDALS AND LEATHER FOOTWEAR
- MANUFACTURING PROCESS OF FOOTWEAR (LEATHER)
- DESIGNING
- SELECTION OF THE RAW MATERIAL
- CLICKING
- STAMPING AND EMBOSSING
- SKIVING
- PUNCHING AND EYELETTING
- PERFORATING
- CLOSING
- LASTING
- SOLE ATTACHMENT
- FINISHING
- PROCESS FLOW DIAGRAM
- PROCESS IN DETAILS
- SOLE MAKING
- SOCK INSERTION
- FLOW SHEET
- 1ST STAGE PROCESS:- PREPARATION OF UPPER PORTION OF THE SHOE.
- 2ND STAGE:- PREAPARATION OF THE SOLE
- COMPELETE FORMATION OF SHOE
- MANUFACTURING PROCESS OF SYNTHETIC SANDALS
- PROCESS FLOW DIAGRAM
- MANUFACTURING PROCESS OF PU SOLE FOOTWEAR
- MANUFACTURING OF UPPER
- POURING OF PU LIQUID INTO MOULDS
- FINISHING AND PACKING
- PROCESS FLOW DIAGRAM
- ANALYSIS OF PRODUCTION COSTS IN FOOTWEAR MANUFACTURE
- TERMINOLOGY
- COSTS MAY BE CLASSIFIED BY THEIR BEHAVIOR AS
- THE PRICE AND COST STRUCTURE HAS THE FOLLOWING COMPONENTS:
- COSTING METHODS
- MATERIAL COSTING
- LABOUR COSTING
- SHOE SPECIFICATION
- COSTING GUIDELINES
- PRINCIPLES OF PLANT LAYOUT
- STORAGE LAYOUT:
- EQUIPMENT LAYOUT:
- SAFETY:
- PLANT EXPANSION:
- FLOOR SPACE:
- UTILITIES SERVICING:
- BUILDING:
- MATERIAL-HANDLING EQUIPMENT:
- RAILROADS AND ROADS:
- MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:
- PLANT LOCATION FACTORS
- PRIMARY FACTORS
- 1. RAW-MATERIAL SUPPLY:
- 2. MARKETS:
- 3. POWER AND FUEL SUPPLY:
- 4. WATER SUPPLY:
- 5. CLIMATE:
- SPECIFIC FACTORS
- 6. TRANSPORTATION:
- A. AVAILABILITY OF VARIOUS SERVICES AND PROJECTED RATES
- 7. WASTE DISPOSAL:
- 8. LABOR:
- 9. REGULATORY LAWS:
- 10. TAXES:
- 11. SITE CHARACTERISTICS:
- 12. COMMUNITY FACTORS:
- 13. VULNERABILITY TO WARTIME ATTACK:
- 14. FLOOD AND FIRE CONTROL:
- EXPLANATION OF TERMS USED IN THE PROJECT REPORT
- 1. DEPRECIATION:
- 2. FIXED ASSETS:
- 3. WORKING CAPITAL:
- 4. BREAK-EVEN POINT:
- 5. OTHER FIXED EXPENSES:
- 6. MARGIN MONEY:
- 7. TOTAL LOAD:
- 8. LAND AREA/MAN POWER RATIO:
- PROJECT IMPLEMENTATION SCHEDULES
- INTRODUCTION
- PROJECT HANDLING
- PROJECT SCHEDULING
- PROJECT CONSTRUCTION SCHEDULE
- TIME SCHEDULE
- SUPPLIERS OF RAW MATERIALS
- SUPPLIERS OF LEATHER
- SUPPLIERS OF SHOE ACCESSORIES & CONSUMABLES
- SUPPLIERS OF PLANT AND MACHINERIES
Appendix
- 01. PLANT ECONOMICS
- 02. LAND & BUILDING
- 03. PLANT AND MACHINERY
- 04. OTHER FIXED ASSESTS
- 05. FIXED CAPITAL
- 06. RAW MATERIAL
- 07. SALARY AND WAGES
- 08. UTILITIES AND OVERHEADS
- 09. TOTAL WORKING CAPITAL
- 10. TOTAL CAPITAL INVESTMENT
- 11. COST OF PRODUCTION
- 12. TURN OVER/ANNUM
- 13. BREAK EVEN POINT
- 14. RESOURCES FOR FINANCE
- 15. INSTALMENT PAYABLE IN 5 YEARS
- 16. DEPRECIATION CHART FOR 5 YEARS
- 17. PROFIT ANALYSIS FOR 5 YEARS
- 18. PROJECTED BALANCE SHEET FOR (5 YEARS)
Frequently Asked Questions
The Indian footwear industry has significant growth potential across domestic and export markets.
India is one of the world's leading footwear producers with a diversified manufacturing base serving leather and non-leather segments. Growing consumer demand, expanding retail channels, and export opportunities continue to make footwear manufacturing an attractive industrial sector for entrepreneurs and investors.
The project covers the manufacture of multiple footwear categories.
These include leather shoes, synthetic sandals, PU sole footwear, sports shoes, casual shoes, dress shoes, boots, sandals, and other footwear products. The manufacturing methods vary according to the product type, materials used, and desired quality standards.
Footwear manufacturing follows a structured multi-stage production process.
Typical operations include designing, raw material selection, clicking, stamping, skiving, punching, perforating, closing, lasting, sole attachment, finishing, packing, and quality inspection. Depending on the product, additional processes such as PU moulding or sole making may also be included.
Efficient operations depend on proper planning, location, and production management.
Important considerations include raw material availability, skilled labour, transportation, utilities, plant layout, quality control, regulatory compliance, storage, market access, and effective cost management throughout the manufacturing process.
Cost analysis helps manufacturers improve profitability and operational efficiency.
Understanding material costs, labour costs, overheads, working capital requirements, and production expenses enables businesses to determine competitive pricing, manage resources effectively, evaluate investment decisions, and monitor financial performance over time.
Entrepreneurs should carefully assess technical, financial, and market requirements before investing.
A comprehensive project evaluation should include market demand, production technology, plant capacity, machinery selection, availability of raw materials, project economics, regulatory requirements, infrastructure, manpower, and implementation schedules to support long-term business success.
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