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Leather, Leather Goods and Leather Tanning, Finished Leather for Footwear and Leather Goods, Products, Industries, Leather Tannery, Leather Accessories Projects

The leather industry occupies a place of prominence in the Indian economy in view of its massive potential for employment, growth and exports.  Endowed with the largest cattle population in any country of the world and cheap and abundant manpower, India is well-equipped to have the comparative advantage in the production of leather and leather goods.

The country is among the top four producers of finished leather apart from countries like Italy, Korea and China accounted for 40% share of the total world leather production. There has been a shift with the industry moving to low-cost labour countries such as China, Indonesia, Thailand and India; and yet, the Indian share in the total market has remained low. India and China are entering into a cooperation phase in certain areas of leather industry, such as technology, training and tackling environmental and other global issues.

The Indian leather industry suffered from the handicap of low investment and sub-standard technology.  As a consequence, India's share in the global market remains at a low of 3%. Of late, the country has emerged as a significant exporter with more sophisticated and value-added products.  In fact, it is fast changing from a raw material exporter to an exporter of more upgraded finished products.  The product range has got widened and with greater innovation a substantial value addition is being secured.

To exploit the full potential of the industry, the government launched the Leather Technology Mission with twin-objectives with the first one aiming at restructuring and streamlining the industry to make  it  internationally competitive, and secondly protecting  the interests of the small scale and tiny sectors.

The leather industry is spread in different segments, namely, tanning & finishing, footwear & footwear components, leather garments, leather goods including saddler & harness, etc. The product variation covers semi and finished leather, footwear and footwear components,  garments for ladies and gents, handbags for ladies and gents, wallets, diaries and cardholders, gloves and fashion accessories, tableware, upholstery (for houses, offices and vehicles), and luggage and portfolio bags. 

Apart from manpower required in the collection of hides, the industry claims an employment of 2.5 million, most of which is engaged in the small and informal sector making up for 75% of the total industry. The size of the leather industry is estimated at around Rs 300 billion today. The leather industry is targeting an 8-10% share in global trade by 2010-11. The industry is aiming at doubling export turnover to $ 4 billion. This would call for an investment of at least Rs 120 billion in plant and machinery and infrastructure development.

Some of the major leather exporters include Tata International Ltd., Florind Shoes Ltd., Punihani International, Farida Shoes Ltd., and Mirza Tanners Ltd.etc. The major markets of Indian leather products are the USA, the UK, Germany, Italy and France.

 

 

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Leather Binder (Resin Based) - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue

Leather binders are used to join leather to leather, crepe rubber soles to leather, felt to leather, rubber to fibres and as binders for inorganic fillers. Binders are used in Housing, furniture, carpets, bookbindings, shoe and other feather based industry, disposable goods and airplanes etc. Laminated sheets are being used increasingly which increases the use of synthetic binder. Multiplayer packaging make use of synthetic binder. Consumption in pressure sensitive tapes in packaging, in medicine, in electrical products etc is increasing. Most of the consumption for synthetic binder exists in the leather and packaging industry. Demand for synthetic binder is estimated to increase at 18 % per annum. Compared to current supply and future demand, there seems to be huge scope of new investment in this project. The quality can be further improved by using polyurethane based synthetic binder or cynoacrylate based binders. With improving availability of raw material, the scope of investment in this industry is quite bright.
Plant capacity: 2 MT/DayPlant & machinery: Rs. 25 Lakhs
Working capital: Rs. 110 LakhsT.C.I: Rs. 171 Lakhs
Return: 39.70%Break even: 41.76%
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Leather Finishing - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue

Leather making in India is spread right from backward tanning unit to sophisticated modern unit in view of the versatility of leather product in modern times, the demand of finished leather is increasing day by day. The demand is more than the production. So to cater to the outgrowing demand of finished leather the imperative need of the hour is to install many more new units for finished leather.
Plant capacity: 1000 Pcs/DayPlant & machinery: Rs. 80.00 Lakhs
Working capital: Rs. 198 LakhsT.C.I: -
Return: 35.00%Break even: N/A
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Leather Tanning - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Layout

Tanning is effected by treating the conditioned hides and skins with organic, inorganic or synthetic tanning agents. The most important among them being vegetable tanning materials and basic chromium sulphate. Basic salt of aluminium, zirconium, iron, formaldehyde, quinone, aliphatic sulphonyl chlorides, fish oils and synthetic polymerized materials (Syntans) are used for the production of special leathers. India is rich in cattle wealth. Buffalo, calf leather in India’s speciality leather. In India, there is abundance of traditional skills for the manufacture of leather products. Tanned and half-tanned leather are used for- shoe making, Belt, bags, Cycle seats, Suitcase, Decorative items, PVC leather clothing etc. The leather industry occupies a unique position in the country as one of the major export earners-presently exporting to a tune of Rs. 1250 Crores and expected to be about 1800 Crores by the end of the current plan period. Leather has also a very good export market. India is one of the biggest exporter of raw leather and leather goods to most of the European, African Middle East and Asian countries. There is a fair scope for new entrepreneurs to entre in this field.
Plant capacity: 2100 sq. MT/DayPlant & machinery: 110 Lakhs
Working capital: -T.C.I: 547 Lakhs
Return: 46.00%Break even: 36.00%
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GLUE FROM LEATHER WASTE - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue

Animal glue was the most common woodworking glue for thousands of years until the advent of synthetic glues such as polyvinyl acetate (PVA) and other resin glues in the 20th century. Today it is used primarily in specialty applications such as lutherie, pipe organ building, piano repairs, and antique restoration. Most animal glues are soluble in water, useful for joints which may at some time need to be separated. Alcohol is sometimes applied to such joints to dehydrate the glue, making it more brittle and easier to crack apart. Specific types include hide glue, bone glue, fish glue, rabbit skin glue. Significant amount of solid waste are produced including trimmings, degraded hide and hair from the beam house process. The solid wastes can represent up to 70 % of the (wet) weight of the original hides. Large amounts of sludges are also generated. Solid wastes can be utilized to manufacture utilizable products like dog toys, gelatin, glue, shoes etc. An animal skin consists of about 61% water, 34% fibrous proteins, 1% globular proteins, 2% lipids, 1% natural salts and some other ingredients including pigments. Out of three layers, the epidermis, dermis and the hypodermis it is the dermis which is later transformed into leather. The epidermis primarily composed of keratin has hair which is removed and the hypodermis has flesh and blood vessels which are also removed. In leather processing, the basic operations revolve round cleaning the skin of unwanted inter fibril material through a set of pre-tanning operations in the Beam House, processing the leather permanently by means of tanning and adding aesthetic value during the post tanning process. The starting material in most cases is raw hide or skin which has been preserved temporarily by the addition of common salt. There is a good scope and market potential for this product. New entrepreneurs should venture into this field.
Plant capacity: 750 MT/AnnumPlant & machinery: 139 Lakhs
Working capital: -T.C.I: Cost of Project : 335 Lakhs
Return: 43.00%Break even: 68.00%
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LEATHER FINISHING FOR SOFA & AUTOMOTIVE UPHOLSTERY - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunity

Leather is the fastest growing upholstery material used today due to its strength, supple feel, wear ability, and ability to breathe. With an average lifespan four times that of fabric; leather represents a tremendous value to the consumer. Upholstery Leather for furniture and automotive is manufactured from hides that are a by-product of the beef and dairy industries. Leather is a beautiful product and is durable, hygienic, stylish and easy in maintenance. It provides an interior with warmth and shows the beauty of nature. Leather finishes are merely used to protect and beautify natural belle of leather. Leather is widely popular in market due to its high richness, strength and durability. Leather finishes prevent and seal leather from external environmental pollution and surroundings. Leather Finishing is a process undertaken for enhancing and protecting the natural beauty of the hide. The leather is re-tanned and dyed, ready for finishing to the highest possible standards. Automotive upholstery leather is very different from furniture leather. Auto Leather is more durable than furniture-grade leather because it goes through different tanning and finishing processes. Automotive leather upholstery has a stronger finish than that used for domestic leather furniture. All leather comes from one source; the hides of animals. Different animal skins are used to produce a variety of looks in leather. Automotive leather upholstery used was high quality top grain full grain leather with a pigmented solvent-based Nitrocellulose lacquer coating, which required oil-based products that contained solvents to keep them from becoming brittle and cracking. Only the highest quality top grain (the top 0.05 inches of the hide) was selected for their use, this grade of leather is now only used in less than 10% of automobiles. Over time they acquired a patina and a soft hand that was typical of this kind of leather hide. All of which requires old world skills and products to maintain them. Leather, once the exclusive domain of the wealthy, has become an attainable luxury for an expanding market segment. Increased affluence as well as increased awareness of leather's unique properties has both been credited with the upswing in the popularity and attainability of leather. The opportunity to specialize in an upholstery niche market is often overlooked by upholstery shops, because in trying to welcome all potential customers shops miss out on customers who are looking for an expert in a niche. Upholstery work is profitable because it is hard and not everyone wants to do it. The Automotive industry is the key driver of any growing economy. A sound transportation system plays a pivotal role in a country’s rapid economic and industrial development. The well-developed Indian automotive industry ably fulfils this catalytic role by producing a wide variety of vehicles. India’s automotive industry is now worth $34 billion and expected to grow $145 billion in another ten years. The Indian automotive industry is growing at a very high rate with sales of more than one million passenger vehicles per annum. The overall growth rate is 10-15 per cent annually. India is the world’s second largest manufacturer of two-wheelers, fifth largest manufacturers of commercial vehicles as well as largest manufacturer of tractors. It is the fourth largest passenger car market in Asia and home to the largest motorcycle manufacturer. Automotive is decidedly the fastest growing market for leather upholstery in the world. The growing trends in the automotive sector are directly related to upholstery leather because there will be a lot of demand and supply for automotive upholstery leather for finishing of such products for this sector. In a similar fashion, as in many emerging markets, India is experiencing a rapid phase of urbanization with a change in lifestyles, a growing demand for engineered wood panel products, and a high infrastructure; industry sources expect positive growth for wood furniture’s sector. The upholstery leather furniture is somewhat related to the luxurious life style of rapid urbanization and improved spending power. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income are some of the key social drivers thus giving a strong signal to the possibility of Indian upholstery leather industry realizing its huge potential in the near future. There is a very good scope in this sector and new entrepreneurs should venture in this segment. Cost Estimation: Capacity : 18000 Pcs. Upholstery for Furniture/Annum 18000 Pcs. Upholstery for Automotive/Annum Each Pcs. Avg. 25 Sq.Ft.
Plant capacity: -Plant & machinery: 91 Lakhs
Working capital: -T.C.I: Cost of Project : 249 Lakhs
Return: 43.00%Break even: 55.00%
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Synthetic Tannin Powder For Leather Industry - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities

The term tannin refers to the use of tannins in tanning animal hides into leather; hence the words tan and tanning for the treatment of leather. However, the term tannin by extension is widely applied to any large polyphenolic compound containing sufficient hydroxyls and other suitable groups (such as carboxyls) to form strong complexes with proteins and other macromolecules. Synthetic tannins are used in tanneries as replacement to compliment the tanning action made by the natural tanning extracts. They are used as auxiliaries for pre-tanning, re-tanning and combined tanning and as dispersing agents for vegetable tannins and dyestuffs. Tannins are incompatible with alkalis, gelatin, heavy metals, iron, limewater, metallic salts, strong oxidizing agents and zinc sulfate, since they form complexes and precipitate in aqueous solution. Uses & Applications They have a property to tan animal skin to convert to leather or hide. Conversion imparts resistance to water, heat and abrasives. They can be extracted using water-acetone/alcohol mixture. They have a property to precipitate gelatine & heavy metals. Market Survey In the wattle bark trade, one could process stick bark, bale it and sell it, or process wattle bark, extract tannin and sell it. Sale is normally by export. There are only two companies in East Africa, which extract tannin, namely EATEC AND KTE. These are business concerns that are profit driven. Two other concerns, the sotik wattle bark and the MWB, were the only two other concerns dealing with wattle bark within east Africa. These were owned by farmers and dealt only with processing stick bark and marketing it. The sotik wattle bark company has since gone under and it is only the MWB that remains as the sole flagship of black wattle farmers. Tannin extract is traditionally produced from black wattle trees but there is now stiff competition from tannin extract produced from chestnut and Quebracho trees from South America. Locally there is stiff competition with synthetic tannin. It is this synthetic tannin that is used by all shoe making companies in Kenya. Synthetic tannin is made using sulphur, which adversely affects the environment, the ozone layers and the users. Synthetic tannin produces poorer quality leather than natural tannin and it is much cheaper than tannin extract from black wattle, which makes the best quality leather. ? There are three conventional types or grades of tannin extracts from black wattle. These are: 1. Solid Mimosa Extract. 2. Green sulphited mimosa powder, commonly called GS powder. 3. Spray dried ordinary mimosa powder. Solid mimosa extract is the cheapest and poorest quality tannin extract. It is made out of stick bark alone. Its demand worldwide appears to be waning and the profit margin is lower than the other two types of tannin extract. Spray dried mimosa powder is the next cheapest tanning extract. It is of higher quality than the solid mimosa extract. Spray dried mimosa powder is made out of stick bark, green bark or the combination of the two. GS powder is the highest quality tannin extract, has the highest demand and the profit margin. It is made only from green bark. The green bark that is used to GS powder must be processed within a maximum of 24 hours after being stripped.
Plant capacity: 3000 MT/ AnnumPlant & machinery: 159 Lakh
Working capital: -T.C.I: Cost of Project: 506 Lakh
Return: 25.00%Break even: 53.00%
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Leather Tanning - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Layout

Endowed with the largest cattle population in the world and cheap and abundant manpower, India is well-equipped to have the comparative advantage in the production of leather and leather goods. The Indian leather industry is the 8th largest foreign exchange earner for the country. Handbags, footwear and leather garments have the largest export growth potential in the leather sector, according to a study undertaken by the Export-Import Bank of India. Tamil Nadu is one of the largest centers of Indian leather industry. The country is among the top four producers of finished leather, others being Italy, Korea and China. The relative large markets for Indian leather products include Germany, USA, Italy, UK, Hong Kong and France. Towards strengthening the leather sector, the Government is setting up an International Leather Complex in Andhra Pradesh, a Footwear Park in Chennai, a Leather Goods Park in Kolkata and Footwear Components Parks in Agra and Chennai. There is good domestic and export potential for leather products. New entrepreneurs can well venture into this sector. Few Major Players are named as under: A V Thomas Leather & Allied Products Pvt. Ltd. Aarifi Tanners Ltd. Avanti Leathers Ltd. Crew B O S Products Ltd. Crew R O R Products Ltd. Domino Leathers Ltd. Euro Leder Fashion Ltd. Faizan Shoes Pvt. Ltd. Ghari Industries Pvt. Ltd. Indarma Prime Inds. Ltd. Iqbal Leathers Ltd. J & J Leather Enterprises Ltd. Kiran Overseas (Exports) Ltd. Leayan Global Pvt. Ltd. Malanpur Leathers Ltd. Maypar Leather Mfg. Co. Pvt. Ltd. Metro Exporters Pvt. Ltd. Mokul Overseas Ltd. Moolchand Leathers Ltd. Nadia Leather Ltd. Neelamber Enterprises Ltd. Presidency Shoe International Ltd. Royal Cushion Vinyl Products Ltd. Tata International Ltd. Tejoomals Industries Ltd. Villa B O S Leathers Ltd.
Plant capacity: 27000000 Sq. Ft./AnnumPlant & machinery: Rs.660 Lakhs
Working capital: -T.C.I: Cost of Project: Rs.2367 Lakhs
Return: 31.00%Break even: 64.00%
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Leather Tanning - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Layout

Leather is a durable and flexible material created by the tanning of animal raw hide and skin, often cattle hide. It can be produced through manufacturing processes ranging from cottage industry to heavy industry. Processing and tanning cattle hides is a major India’s livestock byproduct industry. Leather Tanning industry serves various sectors like: Footwear sector, leather garments sector, leather goods and accessories including saddler and harness. Endowed with the largest cattle population in the world and cheap and abundant manpower, India is well-equipped to have the comparative advantage in the production of leather and leather goods. The Indian leather industry is the 8th largest foreign exchange earner for the country. Exports of leather and leather products have increased manifold over the past decades, and reached more than USD 2.38 bn. Easy availability of raw material and huge demand are the key drivers for the sustenance of leather and tanning industry in the domestic and global market. Few Major Players are listed below: A V Thomas Leather & Allied Products Pvt. Ltd. Aarifi Tanners Ltd. Avanti Leathers Ltd. Crew B O S Products Ltd. Crew R O R Products Ltd. Domino Leathers Ltd. Euro Leder Fashion Ltd. Faizan Shoes Pvt. Ltd. Ghari Industries Pvt. Ltd. Indarma Prime Inds. Ltd. Iqbal Leathers Ltd. J & J Leather Enterprises Ltd. Kiran Overseas (Exports) Ltd. Leayan Global Pvt. Ltd. Malanpur Leathers Ltd. Maypar Leather Mfg. Co. Pvt. Ltd. Metro Exporters Pvt. Ltd. Mokul Overseas Ltd. Moolchand Leathers Ltd. Nadia Leather Ltd. Neelamber Enterprises Ltd. Presidency Shoe International Ltd. Royal Cushion Vinyl Products Ltd. Tata International Ltd. Tejoomals Industries Ltd. Villa B O S Leathers Ltd.
Plant capacity: 45000000 Sq. Ft. /AnnumPlant & machinery: 2364 Lakhs
Working capital: -T.C.I: Cost of Project: 5196 Lakhs
Return: 42.00%Break even: 38.00%
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Synthetic Tannin Powder for Leather Industry - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities

The term tannin refers to the use of tannins in tanning animal hides into leather. Synthetic tannins are used in tanneries as replacement to compliment the tanning action made by the natural tanning extracts. They are used as auxiliaries for pre-tanning, re-tanning and combined tanning and as dispersing agents for vegetable tannins and dyestuffs. They have a property to tan animal skin to convert to leather or hide. Tannin extract is traditionally produced from black wattle trees but there is now stiff competition from tannin extract produced from chestnut and Quebracho trees from South America. Locally there is stiff competition with synthetic tannin. It is this synthetic tannin that is used by all shoe making companies. Synthetic tannin is much cheaper than natural tannin extract from black wattle. Solid mimosa extract is the cheapest and poorest quality tannin extract. GS powder is the highest quality tannin extract, has the highest demand and the profit margin.
Plant capacity: 3000 MT/ AnnumPlant & machinery: 159 Lakh
Working capital: -T.C.I: Cost of Project: 506 Lakh
Return: 26.52%Break even: 53.71%
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Extraction of Gelatin Glue from Leather Waste - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities

Gelatin or gelatine (from Latin: gelatus meaning "stiff", "frozen") is a translucent, colourless, brittle (when dry), flavourless foodstuff, derived from collagen obtained from various animal by-products. It is commonly used as a gelling agent in food, pharmaceuticals, photography, and cosmetic manufacturing. Substances containing gelatin or functioning in a similar way are called gelatinous. Gelatin is an irreversibly hydrolyzed form of collagen. It is found in most gummy candy as well as other products such as marshmallows, gelatin dessert, and some ice cream, dip and yogurt. Household gelatin comes in the form of sheets, granules, or powder. Instant types can be added to the food as they are; others need to be soaked in water beforehand. Gelatin is a substantially pure protein food ingredient, obtained by the thermal denaturation of collagen, which is the structural mainstay and most common protein in the animal kingdom. Gelatin is a water soluble proteinaceous substance prepared by processes, which involve the destruction of the tertiary, secondary and to some extent the primary structure of native collagens, specifically by the partial hydrolysis of collagen derived from the skin, white connective tissue and bones of animals. Gelatin is used as a stabiliser (yoghurt), thickener (jam), and texturizer and emulsifier (oil-in-water emulsions). Gelatin is used as a foaming, emulsifying, and wetting agent in food, pharmaceutical, medical, and technical applications due to its surface-active properties. Thus, due to demand it is a good project for entrepreneurs to invest.
Plant capacity: Gelatin Glue: 5 MT/DayPlant & machinery: Rs 156 Lakhs
Working capital: -T.C.I: Cost of Project: Rs 733 Lakhs
Return: 28.00%Break even: 49.00%
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  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
  • One Crore is equivalent to ten million (10,000,000)
  • T.C.I is Total Capital Investment
  • We can modify the project capacity and project cost as per your requirement.
  • We can also prepare project report on any subject as per your requirement.
  • Caution: The project's cost, capacity and return are subject to change without any notice. Future projects may have different values of project cost, capacity or return.

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