Detailed Project Report on leather goods

LEATHER GOODS

[EIRI/EDPR/4208] J.C.: 2373XL

INTRODUCTION

The Indian Leather, Leather Products and Footwear Industry holds a prominent place in the Indian economy. This sector is known for its consistency in high export earnings and it is among the top ten foreign exchange earners for the Country.

The export of footwear, leather and leather products from India was to the tune of US $ 3.68 billion during 2020-21.

The industry is bestowed with an affluence of raw materials as India is endowed with 20% of world cattle & buffalo and 11% of world goat & sheep population. Added to this are the strengths of skilled manpower, innovative technology, increasing industry compliance to international environmental standards, and the dedicated support of the allied industries.

The leather industry is an employment intensive sector, providing job to about 4.42 million people, mostly from the weaker sections of the society. Women employment is predominant in leather products sector with about 30% share.

India is the second largest exporter of leather garments, third largest exporter of Saddlery & Harness and 4th largest exporter of Leather Goods in the world.

The major production centers for footwear, leather and leather products in India are located in the States of Tamil Nadu – Chennai, Ambur, Ranipet, Vaniyambadi, Vellore, Pernambut, Trichy, Dindigul and Erode; West Bengal – Kolkata; Uttar Pradesh – Kanpur, Agra, Noida, Saharanpur; Maharashtra – Mumbai; Punjab – Jalandhar; Karnataka Bengaluru; Telengana Hyderabad; Haryana – Ambala, Gurgaon, Panchkula, Karnal and Faridabad; Delhi; Madhya Pradesh – Dewas; Kerala – Kozhikode and Ernakulam / Cochin; Rajasthan; Jaipur; Jammu & Kashmir; Srinagar.

COST ESTIMATION

Plant Capacity            600 Nos./Day  

Land & Building (300 sq.mt.)    Rs. 37.50 Lac    

Plant & Machinery                    Rs. 35.30 Lac 

Working Capital for 2 Months    Rs. 54.57 Lac 

Total Capital Investment          Rs. 1.38 Cr 

Rate of Return                          66%

Break Even Point                      41%

CONTENTS

INTRODUCTION

INDIAN LEATHER INDUSTRY – OVERVIEW, EXPORT PERFORMANCE & PROSPECTS

STRENGTHS OF INDIAN LEATHER SECTOR

EMERGING STRENGTHS

HIGHLIGHTS OF PRODUCT SEGMENTS OF INDIAN LEATHER AND FOOTWEAR INDUSTRY

TANNING SECTOR –

FOOTWEAR SECTOR –

INDIA’S EXPORT OF LEATHER & LEATHER PRODUCTS 2019-20 VIS-A-VIS 2020-21

% SHARE OF LEATHER & LEATHER PRODUCTS FY 2020-21

MAJOR MARKETS:

% SHARE OF INDIA’S EXPORTS OF LEATHER & LEATHER PRODUCTS IN TOP 12 COUNTRIES IN US$ MN FY 2020-21

INDIA’S EXPORT OF LEATHER & LEATHER PRODUCTS TO VARIOUS COUNTRIES FOR LAST 5 YEARS

FUTURE OUTLOOK:-

USES & APPLICATION OF LEATHER

B.I.S. SPECIFICATION

BUREAU OF INDIAN STANDARDS GUIDELINES ON BIS CERTIFICATION FOR FOOTWEAR MANUFACTURERS

LIST OF FOOTWEAR PRODUCTS UNDER MANDATORY BIS CERTIFICATION

MARKET POSITION

INDIA’S EXPORT BASKET:

TANNING SECTOR

FOOTWEAR SECTOR

LEATHER GARMENTS SECTOR

THE LEATHER INDUSTRY: BACKGROUND

THE INDIAN LEATHER INDUSTRY:

INDIAN LEATHER PRODUCTION CENTRES:

THE BREAK-UP OF LEATHER EXPORTS VALUE IN FY2018-2019 IS AS FOLLOWS:

PERCENTAGE BREAK-UP OF TOTAL LEATHER EXPORTS FROM INDIA:

AMOUNT OF INDIAN LEATHER EXPORTS SENT TO VARIOUS COUNTRIES IS AS FOLLOWS:

INVESTMENT OPPORTUNITIES IN INDIA:

FDI POLICY:

GOVERNMENT INCENTIVES:

KEY AGENCIES IN INDIA:

COUNCIL FOR LEATHER EXPORTS (CLE):

CENTRAL LEATHER RESEARCH INSTITUTE (CLRI):

FOOTWEAR DESIGN AND DEVELOPMENT INSTITUTE (FDDI):

TRADE FAIRS IN GERMANY:

INDIA LEATHER DAYS:

THE ILM INTERNATIONAL LEATHER GOODS FAIR:

THE GALLERY SHOES:

CONSULATE ACTIVITIES:

THE INDIAN LEATHER SHOW 2019:

THE INDIA LEATHER DAYS 2019:

MAJOR INDIAN COMPANIES IN THE LEATHER INDUSTRY

LIST OF FOREIGN COMPANIES IN THE LEATHER INDUSTRY

MANUFACTURING PROCESS

1. CURING

2. SOAKING

3. PAINTING

4. LIMING

5. FLESHING

6. DE-LIMING

7. BATING

8. PICKLING

9. DE-GREASING

10. TANNING

11. SPLITTING

12. SHAVING

13. NEUTRALIZATION

14. DYEING

15. FATLIQUORING

16. SAMMING

17. SETTING OUT

18. FINAL DRYING

19. STAKING & DRY DRUMMING

20. BUFFING & BRUSHING

21. FINISHING

22. FINAL GRADING

23. MEASUREMENT

MANUFACTURERS/SUPPLIERS/EXPORTERS LIST OF MACHINERYAND RAW MATERIAL SUPPLIERS

NAME & ADDRESS OF CHEMICAL AND FINISHING MATERIAL

LEATHER GOODS & ACCESSORIES SUPPLIERS

PLANT & MACHINERIES SUPPLIERS ADDRESS

RAW-MACHINERY SUPPLIERS:

WEIGHING MACHINES

PACKAGING MACHINE

D.G. SET

LABORATORY TESTING EQUIPMENTS

PRINCIPLES OF PLANT LAYOUT

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. TERM LOANS:

8. TOTAL LOAD:

9. LAND AREA/MAN POWER RATIO:

UTILITIES

POWER

WORKING

TOTAL MANPOWER AND PAYROLL

UTILITIES

STEAM

POWER

EFFLUENT TREATMENT AND DISPOSAL

THE WASTE FROM THE FOOD PROCESSING OPERATIONS MAY BE CLASSIFIED ON THE BASIS OF:

STANDARDS

TOLERANCE LIMITS FOR INDUSTRIAL EFFLUENT DISCHARGE

WASTE TREATMENT

PRIMARY TREATMENT

ANAEROBIC TREATMENT

ANAEROBIC TREATMENT HAS THE ADVANTAGES OF

SECONDARY TREATMENT

TERTIARY TREATMENT

SOLIDS CONCENTRATION

TYPICAL WASTE SOLIDS CHARACTERISTICS

EQUIPMENT REQUIREMENT

EQUIPMENT REQUIREMENTS

LEATHER PRODUCTS “A SNAPSHOT”

LEATHER FOOTWEAR

LEATHER GOODS

LEATHER GARMENTS

ORGANIZATION CHART

PLANT LAYOUT

TURNKEY CONSULTANT

SWOL ANALYSIS

STRENGTHS

OPPORTUNITIES

WEAKNESS

LIMITATIONS

IMPLEMENTATION SCHEDULE

PLANT LOCATION

KANPUR CITY- AN INTRODUCTION

CONNECTIVITY

DISTANCES FROM SOME DESTINATIONS IN THE REGION:

KANPUR HISTORY & LOCATION

APPENDIX – A:

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)