Top Manufacturing Business in India

According to statistics, the Indian leather industry employs nearly 12% of the country’s workers. A study published in 2014 revealed that this sector contributes about 16% to 17% of the country's GDP.

Various government initiatives have been implemented in the past to encourage the best manufacturing company models across multiple industries. Since then, India’s manufacturing sector has been showing promising results.

The Leather Industry Scenario

India’s leather industry is worth USD 13 billion, and it is set to rise to USD 25 billion in the next decade. This industry is buoyant for a few reasons:

1. India is the world’s No. 2 for leather footwear and garments manufacturing.
2. It employs more than 50% of workers below 35 years of age.
3. Market drivers include skilled and trained labour, government incentives, growing demand, rising exports, and the easy availability of raw materials.
4. The government has allowed 100% FDI into this industry.
5. The government is giving a fillip to this industry by providing the latest technology.
6. With the help of the Integrated Development of Leather Sector (IDLS), leather production is likely to double in the coming decade.

Besides, the Indian Footwear Design and Development Institute (FDDI) hopes to make waves in the overseas market by designing smart and beautiful leather objects.

Key Drivers of the Indian Leather Industry

The key drivers of the Indian leather industry include:

• India is the world’s No. 2 manufacturer of leather garments and footwear.
• India is the No. 2 exporter of leather garments.
• We are No. 5 in exporting leather goods and accessories.
• India’s cattle population stands at 20% of the world’s cattle, while it holds 11% of its sheep and goat populations. Therefore, India has an abundance in terms of raw materials.
• India produces about 3 billion square feet of leather annually.
• Our leather products account for 9% of the world’s footwear manufacturing.
• It is one of India’s top 10 forex earners due to its high earnings and consistency.
• 55% of the workforce in India’s leather units is aged 35 years or under, so this industry has the youngest employees in India.

How To Set Up A Small Leather Business In India?

From the critical drivers mentioned above, it is apparent that setting up a small leather business in India can be highly profitable.

So, how do you set up your small leather unit in India? Here are some steps you can follow:

• Decide Which Leather Goods to Sell

There are many products one can make from leather. So, choose the one you want to go with. Also, decide your target customers based on the product you decide to manufacture. A third decision would be to follow the business-to-business (B2B) or business-to-customer (B2C) model. While deciding on the business model and customer profile, check to see what your customers like, where they live, and their basic demographics.

• Finalize a Business Name and Write Up a Business Plan

Think of a unique business name that represents your products well. Verify that this name is unique. You might like to patent your business name. Decide if you will solely own it or take in partners. Now, write up your business plan, which spells out your long-term business goals and ways to achieve them. Information about finances, assets, etc should also be detailed.

• Find Factory Space and Begin Marketing

Locate a leather factory to set up your business. Your unit should be easily accessible and be somewhere you can get a lot of footfalls. Decide if you want to rent the space or buy it. Your marketing operations can begin now that you’ve found a place to start a business. Create relevant marketing materials and put them where your target traffic can see them easily. Also, set up a website and think of the kind of advertising that would help make your business visible.

Now, download a few mobile apps and list your business there. Here, you can also reach out to people in business and sell your leatherware to them. Network heavily now to reach out to as many potential buyers as possible.

Ideas for a Leather Business

India produces a wide range of leather goods. Some of the most popular among them are:

• Shoes for Children

The demand for kids’ shoes is growing every day and depends on the growing population, socio-economic levels, the education system, and people’s overall fashion consciousness. According to the latest trends, the export value of kids’ shoes is also very high. Indian leather units make shoes of all sizes and types. By catering to the demands of the time, these leather units continue to remain viable.

• Leather Bags

India produces handbags, office bags, handbags, laptop bags, and wallets among leather bags. The necessary raw materials to make leather bags are available in the tribal areas of Andhra Pradesh and Orissa. Besides, this industry is highly dependent on the leather tanning business. With the number of fashion-conscious people growing, the demand for leather bags is growing.

• Leather Suitcases

With more and more people traveling both within the country and abroad, there’s a growing demand for leather suitcases. Leather bags for corporate staff are also driving the market to produce goods on an international level. Generally, the middle- and elite classes buy leather suitcases for work and as accessories for social events.

• Leather Garments

The latest fashion trends influence the kinds and patterns of leather garments made every season in India’s leather units. If they are in sync with the current types of leather garments, these units can remain viable. For the same reason, they can also export their items. India exports leather garments to Japan, Switzerland, the U.S.A., France, the U.K., Netherlands, Spain, Austria, Germany, Italy, Hong Kong, Austria, Denmark, Canada, Belgium, Greece, Sweden, Russia, and Poland.

• Leather Furniture

These days, leather furniture units respond to the need for premium leather furniture. Leather upholstery is also tailored to the needs of the elite. Leather furniture is also a very lucrative export item.

• Leather Gloves

Leather products aren't just for the fashion industry; they're also used in the railways, defense, and other important industries. There’s a great demand for hand gloves as protective equipment for industrial staff. With the rapid growth of industries and the railways’ expansion, industrial gloves promise to be more in demand.

• Wristwatch Straps

Almost everyone wears a watch and, of them, many like the idea of wearing a leather watch strap. A watch strap always needs to look polished, smart, and strong. People examine the width, color, and design of watch straps when buying, but they also examine straps for the same criteria when getting replacements. As a leather business, you can make watch straps initially by working from home until you are large enough to move out into a shop.

• Creative Leather Goods

There’s no dearth of skilled artisans and craftsmen in India. With their creativity and knowledge of trending items, they fashion the most beautiful and valuable leather goods that have an international demand. Today, India exports its leather goods to major global markets such as the U.S.A., the U.K., Brazil, Japan, Canada, and Italy. Domestically too, Indian leather goods command a reasonable price and have a good market.

• Leather Aprons

Industries have a high demand for leather aprons as protective gear for their factory staff. Chrome-tanned split leather goes to make these aprons. It is popular because it is cost-effective. Besides, its inherent traits compare well with other kinds of leather.

Conclusion

After you follow the steps to establish your leather manufacturing business, concentrate on the necessary equipment, choose the proper machinery and market your products well. So, go ahead and work hard and make a mark on the Indian leather manufacturing landscape.

FAQs: Beat Manufacturing Business

Q. Which Indian state is the largest leather producer?

Ans. Tamil Nadu ranks No. 1 in the country for producing leather. It produces 40% of India’s total leather production. The chief leather-producing centers in Tamil Nadu are Chennai, Ranipet, Ambur, Vellore, Vaniyambadi, Trichy, Erode, and Dindigul.

Q. How is India’s leather industry classified?

Ans. India’s leather industry falls within the manufacturing sector that produces a vast range of leather products. These include bags, footwear, jackets, garments, and jewellery in the latest and most appealing styles.

Q. How many leather industries does India have?

Ans. The Indian leather industry is pegged at USD 13 billion and is expected to touch USD 25 billion in the next 10 years. There are a total of 2020 tanneries in India that produce 13% of the world’s leather production of hides or skins. This industry also stands out for having very young employees, most of whom are under 35 years.

Q. What type of leather is used in India?

Ans. By and large, Indian leather is made from the skins of goats, buffaloes, sheep, and cows. Once they are made into leather items, they are exported.

Q. What is the future of the Indian leather industry?

Ans. Overall, this industry is set to employ many more men and women, as it is labour-intensive. The leather industry makes profits on its finished goods, such as saddlers, harnesses, and garments.