Leather Shoes and Sandals (1000 Pairs/Day)

LEATHER SHOES AND SANDALS

[EIRI/EDPR/4583] J.C.: 2800XL

INTRODUCTION

The footwear sector is a very significant segment of the leather industry in India; rather it is the engine of growth for the entire Indian leather industry.

India is the second largest global producer of footwear after China, accounting for 13% of global footwear production of 16 billion pairs. India produces 2065 million pairs of different categories of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million pairs and non-leather footwear - 1056 million pairs). India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand.

The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulam. About 1.10 million are engaged in the footwear manufacturing industry.

Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals,  Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials.

Indian shoes and footwear industry which occupies an important place in the list of important industries today has come out of its infancy and the industry to which was only a cottage oriented one, has not only moved into the small sector, but also gradually into the medium sector.

Footwear which was a luxury item has become more than essential one of daily life, influencing the development of the industry.

COST ESTIMATION

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%

CONTENTS

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 – 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)