Industry Overview
The Indian Leather, Leather Products and Footwear Industry holds a prominent position in the Indian economy, with consistent export earnings that place the sector among the country's top ten foreign exchange earners. Exports of footwear, leather and leather products from India were valued at US $ 3.68 billion during 2020-21.
India has a strong raw-material base, supported by approximately 20% of the world's cattle and buffalo population and 11% of the world's goat and sheep population. The industry is further supported by skilled manpower, innovative technology, increasing compliance with international environmental standards and allied industries.
As an employment-intensive sector, the leather industry provides jobs to about 4.42 million people, largely from weaker sections of society. Women account for about 30% of employment in the leather products sector. India is the second largest exporter of leather garments, third largest exporter of Saddlery & Harness and fourth largest exporter of Leather Goods globally.
Major production centres are distributed across Tamil Nadu, West Bengal, Uttar Pradesh, Maharashtra, Punjab, Karnataka, Telangana, Haryana, Delhi, Madhya Pradesh, Kerala, Rajasthan and Jammu & Kashmir, including important centres such as Chennai, Kanpur, Agra, Kolkata, Mumbai, Bengaluru, Hyderabad, Delhi and Jaipur.
Cost Estimation
| Particulars | Value |
|---|---|
| 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% |
Content Index
- 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
- 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)
Frequently Asked Questions
The Indian leather industry has strong potential because of its raw-material availability, skilled workforce, established production centres and export orientation. India has a substantial livestock base and a developed ecosystem covering tanning, footwear, leather goods and garments. The sector also benefits from technological development and increasing compliance with international environmental standards. These factors provide a foundation for continued participation in domestic and international leather markets.
Major leather and footwear production centres are spread across several Indian states, with important clusters in Tamil Nadu, Uttar Pradesh, West Bengal, Maharashtra, Punjab, Karnataka, Telangana, Haryana, Delhi, Madhya Pradesh, Kerala, Rajasthan and Jammu & Kashmir. Notable centres identified in the report include Chennai, Ambur, Ranipet, Kanpur, Agra, Kolkata, Mumbai, Jalandhar, Bengaluru, Hyderabad, Delhi, Jaipur and Srinagar. These clusters support manufacturing, processing, employment and related supply-chain activities.
The main stages in the reported leather manufacturing process range from curing and soaking through tanning, finishing and final measurement. The process includes operations such as liming, fleshing, de-liming, bating, pickling, de-greasing, tanning, splitting, shaving, neutralization, dyeing, fatliquoring, drying, staking, buffing, brushing and finishing. Each stage performs a specific function in preparing hides or skins and developing the required physical, visual and performance characteristics of finished leather.
A suitable leather manufacturing plant location should provide reliable access to raw materials, markets, utilities, labour, transportation and waste-disposal facilities. The report also identifies climate, regulatory laws, taxes, site characteristics, community factors, flood and fire control, and the availability and projected rates of services as location considerations. Evaluating these factors together helps a project developer select a site that supports efficient operations, regulatory compliance, logistics and long-term industrial performance.
Effluent treatment is important because leather processing generates wastewater containing process-related contaminants that require controlled treatment before discharge or reuse. The report addresses industrial effluent standards and treatment stages including primary, anaerobic, secondary and tertiary treatment. Appropriate treatment helps reduce pollutant loads, manage solids and support compliance with applicable environmental requirements. The actual treatment configuration should be selected according to the process, wastewater characteristics, applicable standards and site-specific operating conditions.
Leather can be used to manufacture footwear, leather goods, garments, saddlery and harness products and other finished leather articles. The report specifically identifies leather footwear, leather goods and leather garments as major product segments. Manufacturing requirements vary according to the product, leather grade, finishing specifications, machinery, accessories and quality standards. A project therefore needs to define its target product mix before finalizing production processes, equipment requirements, plant layout and operating requirements.
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