Establishing a small-scale leather processing unit with an approximate capacity of 2,800 sqft.
Product/Service description
To start a small-scale leather processing factory to process the skin of different animals and supply the finished product to different leather goods manufacturing units. The factory will have an approximate capacity of 2,800 sq ft and can process around 140 animal skins per day.
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Product/Service description
To start a small-scale leather processing factory to process the skin of different animals and supply the finished product to different leather goods manufacturing units. The factory will have an approximate capacity of 2,800 sq ft and can process around 140 animal skins per day.
Market scope/potential
Leather processing is an old business in India. It is highly profitable because there is a huge demand for high-quality leather goods in the market. Apart from the domestic demand, leather goods also enjoy a demand in the international markets. From a long time, India has been exporting high-quality leather and leather goods to countries like Korea, Germany, China, and many others. However, there are places in India where the amount of animal skin produced is still not being optimally utilized. Therefore, a leather processing business can not only utilize the animal skin optimally but also do a good business and add to the country’s revenue.
Opportunities
1. Good business scope is available in our country due to a huge demand in the Indian as well as the international markets.
2. Animal skin is available in huge quantities in our country.
3. Introduction of new technologies has helped in the improvement in the quality of the leather.
4. Favorable government policies have helped in enhancing the leather processing business.
Risks
1. The availability of land in an industrial area is a must.
2. Since a leather processing unit produces a lot of waste, an effluent treatment plant must be established along with the processing unit.
3. Permission from the Pollution Control Board is required before starting the business.
4. The process of leather tanning has health hazards.
5. Transportation facility is a must.
Entrepreneurial qualities
A person who wants to establish a leather processing unit must have a good capital. He/she must have the knowledge of all the government policies required to start this business. Good contacts can help in the procurement of umpteen raw materials. Thorough market research is required to sell the finished product at reasonable profits.
Conclusion
A leather processing unit is a profitable business idea if there is an availability of proper land, good amount of raw materials and skilled employees. Appropriate waste management is also crucial in this field.