8/12/2019 Lather Industry http://slidepdf.com/reader/full/lather-industry 1/108 PRODUCT : PU LAMINATED SPLIT LEATHERPRODUCT CODE :QUALITY STANDARD: At present, no particular specification is available for this product. But for export order, various specifications are provided by the buyers only. The PU Laminated Leather should have good drape, smooth surface, uniform thickness throughout the area and colour should be light & water fast. MONTH AND YEAR : MARCH, 2011 PREPARED BY: GOVT. OF INDIA, MINISTRY OF MSMEBr. MSME – DEVELOPMENT INSTITUTE CHANDPUR INDUSTRIAL ESTATE, VARANASI – 221106. A. Introduction:PU Laminated Split Leather is the modern development in the leather industry. This leather has gained great popularity in the fashion world. It is used for making a wide variety of fancy leather products. Considering the low market price of the split from cow and buffalo hides, its huge availability in the local market and substantial market potential, the project on manufacturing PU Laminated Split Leather have very bright prospect. B. Market Potential:There exists a very good market potential for the PU Laminated Split Leather both in the international market as well as internal market. This leather is used to make fashionable leather product is increasing day by day. There is a good scope in the international market like USA, CANDA, UK, Germany, Italy, Australia, Japan etc. are a number of shoes, garments and goods manufacturing units through out the country who demand nubuck leather due to good export market for products made by nubuck leather.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
QUALITY STANDARD : At present, no particular specification is available for thisproduct. But for export order, various specifications are provided by thebuyers only. The PU Laminated Leather should have good drape, smoothsurface, uniform thickness throughout the area and colour should be light& water fast.
MONTH AND YEAR : MARCH, 2011
PREPARED BY : GOVT. OF INDIA, MINISTRY OF MSME Br. MSME – DEVELOPMENT INSTITUTE
CHANDPUR INDUSTRIAL ESTATE,
VARANASI – 221106.
A. Introduction:
PU Laminated Split Leather is the modern development in the leather industry. This leather has gainedgreat popularity in the fashion world. It is used for making a wide variety of fancy leather products. Consideringthe low market price of the split from cow and buffalo hides, its huge availability in the local market and
substantial market potential, the project on manufacturing PU Laminated Split Leather have very brightprospect.
B. Market Potential:
There exists a very good market potential for the PU Laminated Split Leather both in the internationalmarket as well as internal market. This leather is used to make fashionable leather product is increasing day byday. There is a good scope in the international market like USA, CANDA, UK, Germany, Italy, Australia, Japanetc. are a number of shoes, garments and goods manufacturing units through out the country who demandnubuck leather due to good export market for products made by nubuck leather.
1. The Project Profile has been prepared on the basis of Single Shift of 8-hrs. a day and 25-workingdays in a month at 75% efficiency.
2. It is presumed that 1st year, the capacity utilization will be 70% followed by 85% in the next year and100% in the subsequent year.
3. The rates quoted in respect of salaries and wages for skilled worker and others are on the basis ofMinimum rates in the State of U.P.
4. Interest rate for the fixed and working capital has been taken @ 15% on an average whether financedby the Bankers or Financial Institutional.
5. The margin money required is minimum (25% of the total capital investment).6. The rate quoted in respect of machineries, equipment and raw materials are those prevailing at the
time of preparation of the Project Profile and are likely to vary from place to place and suppliers tosuppliers. When a tailor made project profile is prepared, necessary changes are to be made.
7. The pay back period may be 5-years after the initial gestation period.8. The gestation period in implementation of the project may be to the tune of 6 to 9 months which
includes making all arrangements, completion of all formalities, market surveys and tie-ups etc. Once allthe above arrangements are made and quality/standards achieved the 100% project capacity may beachieved at the end of three years. However, a detailed PERT/CPM/chart with implementation periodhas been given in the report.
D. Implementation Schedule:
The implementation of the project includes various jobs/exercises such as procurement oftechnical know how, transfer of technology, market surveys and tie-ups, preparation of project reportselection of site, registration, financing of project, procurement of machinery and raw materials etc.,recruitment of staff, erection/ commissioning of machines, trial production and commercial productionetc.
E. TECHNICAL AUSPECT:
1. Manufacturing Process:
The split taken out from the chrome tanned wet blue leather (buffalo or cow) are used for making PULaminated split leather. The process of PU Laminated Split Leather are as under :
At first, the wet blue split leathers are shaved in the shaving m/c. the thickness is kept at 0.9 to 1.0mm. then the weigh of shaved splits are taken. The weight will be used for measuring the quantity ofchemicals to be added in the subsequent process.
Acidification:
The blue splits are taken into the drum and acidified as follows:Acetic Acid - 0.25%Water - 200%The drum is run for 15 minutes.
Re chroming: The re-chroming is done in the same bath and the process is done as follows:Basic Chrome sulphate - 3% run for 40 minutesAdd Soda Bi Carb - 0.5% run for 30 minutesThe pH of the bath is adjusted to 4 and then re-chromed wet blue splits are washed in running water for10 minutes
The neutralization of the wet blue splits is done as follows:Soda bi carb - 0.5%Sodium Formate - 0.5%Water - 200%The drum is run for 40 minutes.The neutralization is checked with bromocresol green and the pH is adjusted at 5. the bath is thenwashed for 10 minutes. And the new float of water is taken in the drum.
Retanning:
This process is followed as:Cationic Fat liquor - 2% the drum is run for 30 minutes.Add Water extract - 2%Basyntan DI (Syntan) - 1% the drum is run for 30 minutes.The retanned splits are washed in running water for 5 to 10 minutes and then fresh water is taken intothe drum.
Fat Liquoring:
The Fat Liquoring is done as follows:Water - 200%Sulphited Vegetable oil - 4%Synthetic Oil - 2%Preservative - 0.25%
The oil emulsion is added to the drum which is run for about one hour. The exhaustion of the fatis checked. Then 0.5% Acetic Acid is added for fixing the fat after which the drum is run for 30 minutesAdd Preservative - 0.25% the drum is run for 20 minutes.
The materials are then washed for 10 minutes. In the running water and then drained out and piledup in the horse for over night. Next day, the splits are sammed, set and dried. Then the dried splits crustare conditioned in the wet saw dust, toggled and staked in the staking m/c. the staked splits are thentrimmed off. Then buffing and snuffing of the splits are done on the flesh side and the grain siderespectively followed by dusting off operation. The splits are now ready for finishing operation formaking PU Laminated Split Leather.
Finishing:
At first, a coat of latex solution or polyurethane coat is applied on the surface on the grain side and
dried. A hair cell print is applied on this surface by the hydraulic press. Then PU foil is put over thegrain side surface of the split leather and plated by the hydraulic press under controlled temp. andpressure. The colour of the spilt leather varies which is to be selected according to the choice of thecustomer. The PU Laminated split leather thus produced is finished at the edges by trimming the excessPU film. Finally, the area of the leather is measured and the leather are packed for dispatch.
2. Quality Control and Standard :
At present, no particular specification is available for this product. But for export order, variousspecifications are provided by the buyers only. The PU Laminated Leather should have good drape,smooth surface, uniform thickness throughout the area and colour should be light & water fast.
(a) Quantity : 90,000 side of PU Laminated Spilt Leather (13,50,000 Sq. Ft.)(b) Value : Rs. 3,64,50,000/-
4. Motive Power : 100 H.P.
5. Energy Conservation: The following steps may be taken for the conservation of energy.
1. Machinery & Equipments parts which are revolving and reciprocating should be properlylubricated from time to time with suitable lubricant oil.
2. Lay out of the unit should be in such a way in that no back tracking of material is there.3. All electric switches may be kept off, when not required.4. The entire transmission belt will be tightened before starting the work is where ever
Applicable.5. Fluorescent tube with electronic Chokes may be used for energy saving. Further recently
developed compact fluorescent tubes called (CFT) of 10, 15, watts Philips/Glaux made maybe used for energy saving and decoration. These self ballasted fluorcent lamps are highefficiency replacements for ordinary bulbs. For same light output, CFLEBs consumeabout one fifth the power consumed by ordinary bulbs, thereby saving a lot of energy. Thesavings get further multiplied when CLEBs are used in air conditioned areas, since the savingof energy by using CLEBs also corresponds to less heat dissipation reducing load on airconditioners.The life of CFLEBs is about 8000/10000 hours i.e. about 10 times that of ordinary bulb.The typical pay-back period in terms of savings of energy bills and cost of ordinary lamps isabout 6 months operation. Unlike ordinary bulbs, these CFLEBs provide choice of threecolours designated A, B & C, to suit individual requirements.Electronic Ballast, with protection against high voltage spikes, along with high quality CFLsmake these composite CFLEBs (or self ballasted CFLs) Slim, light weight, efficient andreliable units.
6. As far as possible Solar Energy and day light will be used keeping all the other lights off.7. As far as possible inductive load of motor will be reduced and high power factor will be used
with the aid of capacitors of appropriate sizes.
6. Pollution Control:
The pollution control now a days one of the most important environmental issue. This isbecause, the effluent coming out from the tanning process are very toxic and they are likely toaffect the flora and faunae of water, if dispose of else where or in the river. Hence, for runningsuch tanning unit, a No Objection Certificate (NOC) has to be obtained from the pollutioncontrol board. The unit requires a common effluent Treatment Plant.
F I N A N C I A L A U S P E C T S
1. Fixed Capital(Land and Building) :
Total area 1000 sq. mtr. : Rs.10,50,000/-
Build up Area 1. Office & Stores etc. 150 Sq. meter : Rs. 5,25,000/-2. Working Sheds 600 Sq. meters : Rs.21,00,000/-
Total : Rs.52,000/- 7. Working Capital (Per Month):
1. Salary & Wages : Rs. 1,15,000/-2. Raw Material : Rs.22,50,000/-3. Utilities : Rs. 47,500/-4. Other Contingent Expenses : Rs. 52,000/-
Total : Rs.24,64,500/-
8. Working Capital for three months : Rs. 24,64,500 X 3= Rs. 73,93,500/-
9. Total Capital Investment:
1. Fixed Capital : Rs. 66,85,150/-2. Working capital for 3 months : Rs. 73,93,500/-
Total : Rs.1,40,78,650/-
10. MACHINERY UTILIZATION: Anticipated utilisation of machinery is about 75 to 80%.
FINANCIAL ANALYSIS
H1. Cost of Production (per annum): (a) Total Recurring Cost per year : Rs. 2,95,74,000/-(b) Depreciation on Machinery & Equipment @ 10% : Rs. 2,77,515/-(c) Depreciation on Building @ 5% if any : Rs. 1,31,250/-(d) Depreciation on Office Equipments @ 25% : Rs. 52,500/-(e) Interest on Total Capital Investment @ 15% : Rs. 16,91,238/-
By sale of 13,50,000 sq. ft. of PU Laminated Split Leather @ Rs.27/- per sq. ft. : Rs. 3,64,50,000/-
3. Net Profit per annum before Income Tax [H2 - H1] : Rs. 47,23,500/-
Net Profit per year 47,23,500
4. Net Profit Ratio = ----------------------- X 100 = --------------- X 100 = 12.96%
Turnover per year 3,64,50,000
Net Profit per year 47,23,500
5. Rate of Return = ----------------------- X 100 = -------------- X 100 = 33.55%
Total Capital Investment 1,40,78,650
6. Break Even Point (Percentage of Total Production envisaged):
1. Fixed Cost (Per Annum) :
(a) Depreciation on building : Rs. 1,31,250/-(b) Depreciation on m/c. & equipment : Rs. 2,77,515/-(c) Depreciation on furniture : Rs. 52,500/-(d) Interest on Total Capital Investment : Rs. 16,91,238/-(e) Insurance : Rs. 60,000/-(f) 40% of salary/utility/other expenses : Rs. 10,29,600/-
QUALITY STANDARD : At present, no particular specification is available for this productBut for export order, various specifications are provided by the buyersonly and also as per BIS Specification.
MONTH AND YEAR : MARCH, 2011
PREPARED BY : GOVT. OF INDIA, MINISTRY OF MSME Br. MSME – DEVELOPMENT INSTITUTE
CHANDPUR INDUSTRIAL ESTATE,
VARANASI – 221106.
A. Introduction:
Eco - friendly Shoe upper Leather is generally manufactured from cow hides & skins by using eco-
friendly chemicals and by reducing polluting materials during its manufacturing process. It is used for themanufacturing of leather footwear. Footwear made out of eco-friendly upper leather are exported to differentcountries to fulfill the demand of global market as well as demand of local market. Apart from footwear, thisleather is also used for the manufacturing of sports goods items such as sports shoes, traveling kits etc. whichare also exported to different countries. Products made out of eco-friendly leather are evergreen and there is agood demand for these items by every category of the people.
B. Market Potential:
There are number of footwear manufacturing units in tiny, small scale, medium scale and large scale
sector throughout the country which consume shoe upper leather for manufacturing quality footwear. Thefootwear manufactured by eco-friendly shoe upper leather are popular amongst the people of all countries, allages and income group. There is a good demand for the footwear and other leather products from the foreigncountries, leather footwear and leather based sports goods. Leather goods and other leather manufacturingindustries are one of the main industries, earning the major share foreign exchange for our country. The eco-friendly shoe upper leather is in great demand both within the country and from abroad.
1. The Project Profile has been prepared on the basis of Single Shift of 8-hrs. a day and 25-workingdays in a month at 75% utilization efficiency.
2. Time period for achieving fully envisaged capacity within three years after production.3. The rates quoted in respect of salaries and wages for skilled worker and others are on the basis of
Minimum rates in the State of U.P.4. Interest rate for the fixed and working capital has been taken @ 15% on an average whether financed
by the Bankers or Financial Institutional.5. The margin money required is minimum (25% of the total capital investment).6. Pay back period for the project after one year from its production and total repayments of fixed
Capital within 10 years.7. The cost of land and building has been calculated as per the rates of state concerned.8. The sale prices are ex-godown including packing, sale commission up to 33 % has to be added by the
entrepreneurs before fixing the price.9. The gestation period in implementation of the project may be to the tune of 6 to 9 months which
includes making all arrangements, completion of all formalities, market surveys and tie-ups etc. Once allthe above arrangements are made and quality/standards achieved the 100% project capacity may beachieved at the end of three years.
10. Only eco-friendly shoe upper leather, which has sufficient demand, have been included in the scheme.The entrepreneur can also include other types of finished leather if demand arises.
11. Value of the machinery and equipments are estimated on the basis of prevailing cost of the market. It isproposed to utilize the facility of leather splitting and pressing of leather in hydraulic machine from themarket, as these facility are available easily.
D. Implementation Schedule:
The implementation of the project includes various jobs/exercises such as procurement oftechnical know how, transfer of technology, market surveys and tie-ups, preparation of project reportselection of site, registration, financing of project, procurement of machinery and raw materials etc.,recruitment of staff, erection/ commissioning of machines, trial production and commercial productionetc.
E. TECHNICAL AUSPECT:
1. Manufacturing Process:
• Raw materials : Wet salted cow hides lower quality average weight 15 Kg each.
• Desalting Salting : Remove the salt by mechanical method to reduce the pollution.
• Soaking : the hides are soaked in pits containing 1 to 2% Lime with 10 % Water. Soaked well,washed and soaked weight is noted.
•
Liming (Paddle Liming) : Water – 100%, Clarizyme – 0.5%, Sodium Sulphate – 2%, Lime –10%, Time – 18 to 20 Hrs.Unhaired, fleshing and then fleshed weight noted.
• Deliming in drum : First of all the limed hides are washed in plain water and then delimed withfollowing chemicals in a drum :-Water – 100%, Ammonium Sulphate – 1% to 1.05%- Run the drum for 30 to 45 minutes and checked pH. Drain and wash well.
• Pickling : The delimed pelts are pickled in a drum by using following chemicals :- - Water – 100%- Add Sulphuric Acid – 1% dilute with 10% water- Formic acid- 0.25%
should be properly checked and maintained. Miss use of the fuel in the form of Wood, PetrolKerosine, Diesel etc. should be avoided. The common drive system to run the paddles anddrums may be adopted.
6. Pollution Control :
As the project is envisaged to set up in industrial estate for tanneries with commoneffluent plant, separate pollution control plant is not considered in the project. However, acost of about Rs. 10,000/- will be incurred per month for maintenance of CEPT.
F I N A N C I A L A S P E C T S
1. Fixed Capital ( Land and Building ) :
Sl. No. Item Area Rate (Rs.) Total (Rs.)
1. Land 2 000 Sq. meter 1,00,00/- per Acre 2,00,000/-2. Working Shed, Boundry wall etc. 1000 sq. mtrs 1500/- per sq. mtr. 15,00,000/-3. Office, Lab, Stores etc. 120 sq. mtrs. 4000/- per sq. mtr. 4,80,000/-
PREPARED BY : GOVT. OF INDIA, MINISTRY OF MSME Br. MSME – DEVELOPMENT INSTITUTE
CHANDPUR INDUSTRIAL ESTATE,
VARANASI – 221106.
A. Introduction:
Children Shoes are used for protecting the children foot from injuries, stones, nails, broken glass piecesfallen on the road, infection from the dust, dirt, mud, water and to feel comfort during different climateconditions. Children shoes in particular, are very important in order to save the foot not only from aboveincidents but also from the deformation of foot in the childhood because of their softness and growing tendency.Now-a-days, the children shoes are very common part of school uniforms introduced by many Governments aswell as public schools and these are mainly of a specific style i.e. derby with colour. The shoes warn by thechildren are multifunctional such as to serve the purpose of uniform as well as for feeling comfort during
sitting, walking, playing and so to say for every casual and rough uses. Therefore, these type of shoes need to bewell designed in order to have enough space inside the shoe, flexible, light weight, decent look in addition tocorrect fitting. In this project it has been proposed to manufacture both children shoes and children fancy shoes.Although these products are available with different materials like coated fabrics, textile and a combination ofvariety of materials, yet leather shoes are having popularity due to comfort, durability, aesthetic look and up-manship. The children school shoes are suggested to be made black coloured derby style with PVC soles andthe fancy shoes can be made with different styles such as boots, trainers and other decent look models by usingsingle or multi coloured leather component and PVC or TPR soles.
B. Market Potential:
The demand of the children shoes is increasing day by day in tune with the growth of population, theireconomic standards, education system and fashion consciousness every where in the country. The increasingnumber of public schools vis-à-vis the number of school going children and foot care awareness along with thefashion orientation increases the demand of such products every day.
Thus it is felt that there is an ample requirement of children shoes in every locality. Moreover, the exportworthiness of such products from our country is bright, seeing the present trend. Shoes units aiming tomanufacture children shoe of different types, can, therefore sustain viably by catering to the increasing needs
C. Basis & Presumption: This project profile has been prepared based on the following assumptions:-
1. The Project Profile has been prepared on the basis of Single Shift of 8-hrs. a day and 25-workingdays in a month at 60% during first year, 70% during second year and 80% during 3rd year.
2. Time period for achieving fully envisaged capacity within three years after production.3. The rates quoted in respect of salaries and wages for skilled worker and others are on the basis of
Minimum rates in the State of U.P.4. Interest rate for the fixed and working capital has been taken @ 15% on an average whether financed
by the Bankers or Financial Institutional.5. The margin money required is minimum (30% of the total capital investment).6. The cost of land and building has been calculated as per the rates of state concerned.
D. Implementation Schedule: The implementation of the project includes various jobs/exercises such as procurement of technical
know how, transfer of technology, market surveys and tie-ups, preparation of project report, selection of site,registration, financing of project, procurement of machinery and raw materials etc., recruitment of staff,erection/ commissioning of machines, trial production and commercial production etc. Probably totalimplementation period required is 6 to 8 months for commencing the commercial production.
F. TECHNICAL AUSPECT:
1. Manufacturing Process: In this project, the children shoes are proposed to be manufactured in two different types i.e
Children School Shoes and Children Fancy Shoes. The former is derby type and is normally made fromblack coloured Chrome Tanned cow softy upper leather and the later is of fancy type with single orbrilliant multi colour. Both types are made in different sizes and fittings.
The manufacturing process outline is as follows:-Designing and Pattern Cutting :
As per the selected designs, the patterns are prepared, checked for accuracy and then masterpatters are developed. Then these patters are graded into different sizes and dies are prepared.
Clicking :
The upper, lining and sock components are cut from suitable materials with the help of dies inclicking press. While clicking, it is essential to consider the importance of the components and thecorresponding portion of leather, directional properties of components and that of leather portion, degreeof defects and the best possible inter lock to have minimum wastage, The components are to benecessarily marked with sizes and sides are kept separately to avoid the confusion.
Closing : He cut components are checked to sizes and defects, skived to the edges, folded and other edge
treatments are done as per buyer’s specification. These are then assembled together initially with
adhesive and finally with stitching. The eyelets are fixed, the upper is checked and then sent for nextoperation.
Bottom Components Preparation:
The bottom components such as the insole, toe-puff and stiffeners are cut from suitable materialsand skived as per specification. The PVC sole is cleaned with the solvent like methyle-ethyle-ketone(MEK) and the TPR sole is cleaned and applied with chemical primer (Halogen) and dried.Construction and Shoe Making:
The toe-puff, stiffeners are inserted between upper and lining at the toe and back part. The insoleis fixed on the last and upper is mounted (Lasting) on to it by pulling the toe part, back part and finallythe side portion. The edges are hammered for smooth feather edge. The bottom filling is done in to the
cavity formed due to lasting . The surface is then scoured and roughened to get leveled but the roughsurface is then cleaned with solvent like MEK and dried. Both the sole and lasted upper surface are thenapplied polyurethane adhesive and allowed to dry completely. The dried surfaces are then reactivated togain adhesive properties and then the sole is fitted on the lasted upper accurately and pressed under soleattachment machine for strong and permanent bond. In this condition the sole is kept for few hours for apermanent shape.
Finishing:
The upper and sole is then cleaned and finished with wax and other finishing chemicals. Theshoe is then de-lasted, cleaned from inside, inserted with stamped sock lining, the laces are attachedinspected and packed for dispatch.
2. Quality Control and Standard:
The quality of children shoe has to be maintained as per buyer’s specification. However, the maincriteria for quality control are selection of suitable materials (especially the leather with requiredthickness, shade, strength and softness) cutting components from suitable portions of leather,assembling, regular stitching with suitable thread with specified stitch length and finishing, lastingalignment, sole attachment, finishing and packing.
3. Production Capacity (P.A.):
(a) Children School Shoes : 30,000 Pairs of Rs. 60,00,000/-(b) Children Fancy Shoes : 30,000 Pairs of Rs. 69,00,000/-
4. Motive Power : 10 H.P.
5. Energy Conservation:
All machines are power driven and are run individually, whenever required.
6. Pollution Control :
Although shoe industry does not discharge any pollutants, the following precautions to beconsidered for the better environment.
The adhesives prescribed are mainly solvent based and are inflammable and toxic in nature. Itcan cause problems if inhaled. Therefore, a solvent extraction system is required in adhesive applicationarea. Further the dust developed during scouring and roughing or even during finishing are necessarilyto be collected through an exhaustion system attached to the concerned machine for making the workplace dust free.
Uttar Pradesh is one of the largest states in India. It is the state, which is abundant in theareas of water resources, climate and fertile land. Agriculture is the mainstay of economy ofUttar Pradesh and it engages about 70% manpower and contributes to about 45% of the totalGross Domestic Product of the state. Also, the main rivers of the India subcontinent like Ganga,Yamuna, Gomti, Saryu, ghaghra etc. flows through the state which provides more than adequate
water resources, which is one of the important resources for setting up of industries apart fromabundant land and cheap & skilled human resources. In the last few years’ IndustrialDevelopment has been given huge impetus but the required level of growth had not yet beenrealized. Currently, the total contribution of industry in the GDP of the state is near about 20%Also, the total percentage of workers in industry is mere 8% of the total human resources in thestate. Also there has been unbalanced Industrial Development between Western U. P. andEastern U. P. According to Planning Commission, the population density in Western U. P. is762 persons per Sq. Km., in Eastern U. P. it is 779 persons per Sq. Km. Despite more density inpopulation in Eastern U. P. per persons gross income from agriculture is Rs. 2,152/- where as in
Western U. P. it is Rs. 3,592/-.In the case of registered industries 622 persons per lakh getemployment in Western U. P. where as 296 persons get employment in Eastern U.P. in thissector.
Small Scale Industries is the economic backbone of the Indian Society. It accounts fornearly 40% of gross value of output in the manufacturing sector and 35% of total exports fromthe country. Through over 32 lakh units, the SSI’s sectoris providing employment to about 18Million people. However the SSI contribution to the economy largely goes un noticedespecially in the area of export and technology absorption.
Since the last 45 years, Indian Industry of Eastern U.P. has operated under the protectedeconomy and it becomes seller market, whatever was released in the market got sold one theother hand. WTO measures reduction in tariff, lack of availability of finaqnces has forced ourSmall Scale Industries to become sick. With appropriate policies and safeguard manners toshield from unequal competition on the one hand and proper dissemination of information onbusiness opportunities, training counseling, guidance, monitoring etc.
DISTRICT OF EASTERN U.P. & JURISDICTION OF MSME – DI,
ALLAHABAD & ITS BRANCH :
Small Industries Service Institute, Allahabad and its Branch at Varanasi covering 27 districts of EasternUttar Pradesh and also having geographical area of 85,844 Sq. Kms. Eastern U. P. adjoins in East Biharstate, in West jurisdiction of SISI, Kanpur, in North Nepal Country and in South Madhya Pradesh.According to Census of 1991, the total population was 527.20 lacs. Out of which 466.26 lacs resides in
Rural Areas and 60.94 lacs resides in Urban Areas. Male population was 274.03 lacs and Female populationwas 253.17 lacs.
ADMINISTRATIVE SET UP OF EASTERN UTTAR PRADESH :Sl. No. Particulars Year Numbers
GLOBAL SCIENARIO :The Global Import Profile of the Leather Industry has been very impressive over the past
few decades, particularly in the current decade. With a Global turnover of US $ 52,374.80Million for Leather and Leather products in 2000 compared to a mere US $ 4,000 Million in1980, the market of Leather Products has achieved a very extra ordinary growth rate. TheFootwear and its allied components/products has accounts for US $ 35,714.08 Million.However, India’s share in the Global Market is still around the Global Turnover. India’s Export
constitutes 40% of the Global Import of Leather and Leather products. The rising demand forvarious leather products at competitive prices forced to the movement of this industry fromadvanced countries to a low cast locations. A number of leather footwear industries in Koreaand Taiwan are shifting to China because of cheap labour and other factors. Some of them havegone in collaborative ventures and are migrating to Indonesia., Singapur and Vietnam. India isalso now adopting strategic measures to attract such entrepreneurs to give boost to the leatherproduct industries. It may be noted that the shoe manufacturer in Asia are manufacturing twoout of every three pairs of shoes produced in the World and China accounts for half of the Asiantotal manufacture. As this industry is moving to low cost labour countries, India is also trying toavail the opportunity. With regards to Import Profile of leather garments in the World market,India is maintaining at an average of 7.0%. Major consumers of leather garments are fromEurope, United States, Italy, France, Denmark, Neitherland etc.
The Indian Leather Goods are playing a very important role in the fashion circle all overthe World and the Indian entrepreneurs are in touch with Global Trends. A clear understandingof World market enables them to cater their demand in the selective product categories.Compared to the Global competition, the Indian markets are in better position at lower pricesand this help them to fight against the other countries.
DOMESTIC MARKETING & EXPORT PERFORMANCE :
Mostly the leather products and its allied industries in Eastern U. P. areproduced in Small and Cottage sector. The Indian Leather Industry has attained avery prominent place in the Indian Economy by virtue of its unique performance inthe International Arena. Its inherent strength lies in strong raw material base, skilledlabour and technical manpower. This has resulted in remarkable growth rate inExports of leather products during this current decade. The value of output ofleather industry has grown from base level. The leather footwear sector occupies18% share and the share of footwear components sector is 14%. In this sector,
Germany ranks as the Major Importer followed by USA and UK.The cost factor being the principal criteria in the export scenario, countries which
produce products cost-effectively are dominating the international market. It is estimated thatWorld demand for footwear will continue to increase in next few years. To satisfy therequirements Indian Footwear Manufacturers’ are supplying the items to Europe and USAThey are gearing up to meet the increasing demands for higher quality and friendlyenvironmental products. India with various advantageous factors like availability of richmaterial base, lower wages, modern production facility, trained personnel and aided by
supportive policies of the Government, the leather industry in the country is poised for a greatleap forward in the coming years.
Indian leather industry today has attained well-merited recognition in theinternational market. From a level of 20 percent during the seventies, the export ofvalue added leather products accounts for 80% of the total leather exports. Theleather industry is among the top foreign exchange earners for the country. Inaddition, this type of industry is having the scope for major employment generationwith nearly two million people involved either directly of indirectly. In order tofurther catalyst the growth of this key sector, the Government has initiated anumber of steps to enhance investments in the leather industry as well as encouragethe setting up of modern production facilities.
EXPORT PERFORMANCE OF LEATHER INDUSTRY(Value in Million rupees)
Non-Leather shoes/sandals/chappals 125 Million Pairs Per Annum
Various types of shoes exported from India are Dress shoes, Casuals, Moccasins, Sports
shoes, Horacchis, Sandals, Ballerinas, Booties etc. Major production center for this type of shoeindustry are concentrated at Chennai, Delhi, Agra, Kanpur, Mumbai, Kolkata, Jalandhar etc.
PROJECTION OF FOOTWEAR IN 2002 AD BASED ON DEMAND
Footwear Made from Leather Million Pairs
Leather Footwear 180
Chappals 380
Sandals 102
Footwear Made From Other Materials
Plastics (All Types) 130
Thongs 370
Rubber/Canvas (Including Hi-Tech) 175
TOTAL 1337
• As estimated by NLD Panel CLE
Most of the Modern Footwear manufacturers in the country are already working for wellestablished brands in Europe and USA in the Men’s, Women’s dress shoes. There has been a
rapid growth in the Casual Shoes and Sports Shoe sectors. Growing domestic market forfootwear has also shown the growth in this segment.
ATTRACTIVE DESTINATION FOR TECHNOLOGY AND
INVESTMENTS
With the size of India’s large market and the low production and labour costs,India provides a fascinating destination. For setting-up manufacturing units, themanpower training, supply of machinery & components and materials are the mainareas to the leather industry all over the globe. The Industrial Policy Reformsintroduced by the Government of India in 1991 have improved the flow of ForeignDirect Investment in the country. During the period 1991-98, the number ofapprovals for Foreign Direct Investments for Leather, leather goods and Prickerswere 148. Of these 30 were for technical collaboration, while 118 approvals were fofinancial nature. The amount of Foreign Direct Investment approved in the LeatherSector was Rs. 2431.7 million which was 15% of total FDI approved during 1991-98.
India is a leading importer of finished leather and leather machinery. Duringthe year 1997-98 India imported footwear components worth Rs. 791 Million (US19.78 million). Certainly, India is an attractive proposition for any foreignmanufacturer who intends to relocate his production facility to a low-cost andefficient production base.
LIST OF THE IMPORTERS OF LEATHER FOOTWEAR ANDFOOTWEAR COMPONENTS
(APRIL – FEBRUARY 1997-98 & 1998-99)
(In US Million)
Leather Footwear Footwear ComponentsCountry
1997-98 1998-99 1997-98 1998-99
USA 69.74 66.56 14.31 13.15
U.K. 56. 68 48.04 44.59 51.17
GERMANY 37.02 32.76 52.04 50.79
ITALY 08.76 11.44 49.83 51.51
RUSSIA 23.28 10.09 01.41 00.72
FRANCE 06.27 07.23 08.14 07.61AUSTRALIA 06.58 04.37 05.56 04.77
To implement leather sector programme of UNDP in Uttar Pradesh MOU wassigned between U.P. Export Corporation (UPEC) and National LeatherDevelopment Programme (NLDP) in July 1997. In the first phase of the
programme, computcrized shoe design center was set up in Agra which was startedits activities in December 1997. The programme under phase-I were implementedby UPEC successfully from December 1997 to September 1988.
Based on the results achieved up to September 1998, the activities of AgraCenter have to be strengthened and activities in footwear sector and saddlery sectorat Kanpur have to be started. The activities in footwear sector and saddlery sectorhave started at Kanpur in August 1989.
For implementing the programme, the State Government has providedguidance and financial support.
ACTIVITIES
The objective of Agra and Kanpur center is to act as a catalyst to bring aboutthe change required in terms of quality up gradation, to enable the manufacturer toexceed consumer expectations both in India and Abroad. The Key activities of thecenters are as under:
1. LAST DEVELOPMENT
The center develops the design for new last with the latest demand. NewFashion trends are also received from Italy regularly. At Agra standardized PVClast are provided to artisans and micro enterprises at subsidized rates.
2. PRODUCT DEVELOPMENT
Artisans, Micro enterprises and Exporters are offered complete package including last,design & shoe . Fashion information about future trends is received regularly. This information
is disseminated and passed to the industries by organizing special seminars and workshops.
3. DESIGN AND PATTERN ENGINEERING
A team of designers provide design support to the artisans. The patterns are engineered tofacilitate easy lasting, reduced consumption of leather and better aesthetics. Sample makingfacilities are also provided to artisans. The center displays latest catalogues in the library forartisans. The artisans are using these as a guide and a bench mark for developing the productsExpert designers from Abroad are also visiting the centers to disseminate the information aboutlatest International Design Trends.
The centers provide accurate grading services to the artisans using latest Computer AidedGrading Software and Precision Cutter. The artisans are being provided these services atconcessional rates.
5. TECHNICAL SUPPORT
To upgrade product quality, technical support is being provided by team of TechnologistThe support focuses on key areas like shoe finishing, sole adhesion systems, lasting and closingSeminars and demonstrations are frequently organized to apprise the artisans with latesttechnology.
6. DECENTRALISED COMMON FACILITY CENTRE
Simple machines like Flash Activator, Sole Press, Skiving Machine etc., are provided inclusters of artisan on rental basis. This helps artisans to improve their quality of production.
7. SHORT TERM TRAINING
Short term training programmes of one week to one month are organized in basic shoedesigning and shoe making. These cources are conducted by professionals of the center and acertificate is provided by UPEC on completion of the programme.
8. MARKETING SUPPORT
Artisans are encouraged to participate in Shoe Fairs where one to one meetings areorganized with the buyers. Range building services is also provided to the artisans.
PRESENT POSITION OF LEATHER BASED INDUSTRIES INEASTERN UTTAR PRADESH
After Agra, Kanpur and NOIDA in Uttar Pradesh Faizabad, Gorakhpur, Ballia andAllahabad stands in position for manufacturing of Leather Shoes, Chappals, Sandals. The units
engaged in production of these items are mainly artisans type and run by members of the samefamily. The details of main places of concentration of such units, their numbers, number offamily members engaged in production & other artisans engaged is shown as under:
S.No. Name of
Districts
Production
Manufactured
No. of
Units
No. of
Family
Engaged
Other
Artisan
Engaged
01 Varanasi Chappal/Sandal/Shoes 49 226 356
02 Allahabad -do- 211 463 611
03 Bahraich - do - 67 147 19404 Ballia - do - 201 441 582
05 Gorakhpur - do - 197 432 570
06 Mau - do - 188 413 545
07 Ghazipur - do - 92 202 266
08 Faizabad - do - 384 844 1114
09 Pratapgarh - do - 96 210 277
TOTAL 1485 2978 4515
As we can see, main places of concentration of leather artisans in Eastern Uttar Pradesh isaround Varanasi, Allahabad, Bahraich, Ballia, Gorakhpur, Mau, Faizabad, Ghazipur andPratapgarh. There are about 1485 units which employ about 7493 artisans and also providesindirect labour to about 545 women workers.
Presently there are many dealers for supplying the raw materials to the artisans. Thecomponents like leather, P.U., Neoprin adhesive, threads, etc., are supplied from Kanpur andAgra and the artisans of Eastern Uttar Pradesh are also purchasing the required items fromKanpur & Agra. Due to cheaper price of the product, local dealers are also importing Rexineand adhesive from Taiwan and Korea also.
As artisans of Eastern U.P. had emerged as major supplier of sandals, sleeper, chappals,shoes etc. in market of Eastern Uttar Pradesh and some parts of Bihar state and neighboringcountry i.e, Nepal. The average demand is about 1.59 crores pair of shoes/chappal/sandal etc.per annum and the cost of which comes around Rs. 1,69,600/- lakhs. The break up of the aboveis given as under:
During the course of survey and discussion it was detected that the main problems facedby the artisans are finance, low quality of product and lack of knowledge of latest technique ofshoe making. Hence, there is need for standardization of the product and also to train the manpower involved in this line.
TOOLS & EQUIPMENTS:
As stated earlier, the main concentrations of leather units are of artisans typed and the
tools and equipments used by them is of traditional type. On an average, the cost of tool kitsvaries from Rs. 1200/- to Rs. 1800/- . Artisans also has to keep shoe-making lasts made ofseasoned teak wood. Now-a-days other locally available woods are also used for making shoelast which caused many problems. Most of the tools are available in the local market.
AVAILABILITY OF RAW MATERIALS:
Uttar Pradesh has rich in live stock population. According to the latest study, the totalavailability of hides and skins in the state is around 180 lakhs whereas in Eastern Uttar Pradeshcovering 27 districts according to live stock population of 1993, it is 2,15,89,686 cattles.
The break-up of the availability of hides and skin in the Uttar Pradesh is given as under:
In the study report, it is estimated that due to delayed and unscientific flaying, non -utilization of bye - products, poor storage of hides, U.P. state is loosing about Rs.25 croresevery year.
In the study report, it is also mentioned that the mortality rate is 48.6% for cattle and13.4% for buffalo. 4.3% million hides of fallen carcasses may be available annually in the stateThere are about 40 numbers of buffalo slaughter houses in the state slaughtering approximately
2,000 numbers of buffalo’s per week.
From the above table some of the places of Eastern U.P. are involved in the production ofleather chappals, shoes and sandals by the finished leather. Let us have a quick look as howfinished leather goes through various leather manufacturing process in a systematic ways.
in Faizabad and other places for carrying their products directly to markets of Eastern UttarPradesh. They first had to send their products to either Kanpur or Lucknow and then only itreaches its destination in Eastern U.P. and some parts of Bihar.
It is suggested that U.P. Government should intervene and provide the infrastructure formarketing of the finished products as well as procurement of the raw materials for the artisans tosolve the marketing problems.
FINANCE
As stated earlier, there are about 1114 artisans unit in Faizabad, 611 artisans units in andaround Allahabad, 356 units at Varanasi, 582 units in Ballia, 570 units in Gorakhpur and 545units in and around Mau are mostly situated in the rural areas. Hence, about 55% to 60% of theseare financed by Khadi & Village Industries Board. Previously when the rate of interest was 7%for the units financed by KVIB, then artisans were attached towards them. Now since last fewyears, the rate of interest has been enhanced to 14.5%. Therefore, now-a-days artisans generallydo not prefer to get the loan from them.
There are three main schemes under which units/samitti are financed by KVIB and theyare :
• Bank Cansoriam Scheme
• Interest Subsidy Scheme
• Bank Credit Margin Money Scheme
It is suggested that Government should come forward and introduce some sort of packagelike the single window scheme where artisans may get all the facilities for procurement of rawmaterials, sale/marketing of their finished products and availability of finance alongwithsubsidy, if possible. The gestation period for the repayment of loan may also be extended forthe period allotted at present because this type of industry is totally artisans based industries.
DEMAND
As stated in earlier columns Faizabad, Gorakhpur, Allahabad etc., had emerged as majorsuppliers of sandals/chappals/ladies chappals/children shoes/gents shoes etc. in the market ofEastern U.P., some parts of Western Bihar and also some places of Nepal. The average demandof these items is about 1.59 crore pair of shoes/chappals/sandals, the cost of which comesaround Rs.1,69,600 lakhs.
At present there is an annual increase of about 7% to 10% in demand of these products.About 65% of the products manufactured are being sent outside the district while rest 35% isconsumed locally. Hence, there is a good scope for this type of industry in Eastern U.P.
• Leather Technology Parks were proposed to be set up at Kanpur and Agra in the ExportPolicy of Government of U.P.. In Kanpur (near Jajmau) about 280 acres of land has already
been identified and acquisition process initiated by UPSIDC. A detailed feasibility report hasalready been prepared by CLRI and booking of Plots has also started recently.
• Computer Aided Design (CAD) facility for leather footwear and other products has beenavailable in CFTI, Agra, FDDI, NOIDA and CLRI Kanpur.
• Inland container Depot (ICD) has become functional at Kanpur and Central WarehousingCouncil is the Executive Agency.
• Foreign Post Offices are also functioning at Kanpur & Agra.
• Certification for the purpose of Export is being done by CLRI in which Director (Leather) ofSISI, Kanpur and Assistant Director (Leather) of SISI, Allahabad is a member in thecommittee for their jurisdictions’ unit.
• Small Industries Service Institute, E-17,18 Industrial Estate, Naini, Allahabad and Br. SISIVaranasi are rendering technical consultancy, other technical inputs and providing varioustraining to the needy entrepreneurs.
Leather is a natural raw material with its three dimensional fibre structure and inherentunique properties the disadvantage in that is comparatively non-uniform and varies in sizeshapes etc. With the advant of synthetics, which are making in roads into the variousapplications which leather has been put so far, leather has to face challenge in its conventionalmarkets like footwear and leather goods. Synthetics have the obvious advantage of uniform
surface increased cutting value etc., although they lack in some of the important physicalcomfort and hygienic properties in comparison with leather. It is to face the challenges ofsynthetics and to extend customer satisfaction that quality control and standardization in leatherassume great significance. The most important inspections during processing of leather are thefollowing:
01 SOAKING It should become like green hide/skin02 LIMING Proper swelling, plumping and un-hairing should be ensured.
03 DELIMING Proper deliming should be checked with Phenophthalein.
04 PICKLING The pH of pickling should be checked (2.8 to 3.0 for chrometanning).
05 CHROMETANNING
Complete penetration of chrome should be assured beforebasification.
06 THICKNESS The uniformity of thickness all over the area should be assured.
07 NEUTRALISATION The uniform pH throughout the cross section for the leather should beassured. The pH may differ for different quality of leathers. Thesuitable indicator must be used to check the pH.
08 DYEING The dyeing should be through and through and uniform bath shouldbe completely exhausted before fixing.
09 CRUSTINGOPERATIONS
All mechanical operation for crusting should be observed carefully.
10 FAT LIQUORING The emulsion should be proper and the bath should be exhaustedbefore adding acid to it for breaking.
11 FINISHING The finishing is the operation where aesthatic appeal is imparted toleather. One should be very much careful that whatever is applied onthe leather surface should be uniform. Upgradatio0n of the leathershould be aimed at finishing operations and sequence of theoperations should be decided accordingly for each lot.
12 PACKING The handling and packing of leather is also very important.
13 pH VALUE The pH value is a term which is very important for leather processing.It is defined as ‘negative logarithm to the base 10 of the hydrogen ionconcentration.
There are many solutions which are used to find out the PH of leather and bath during
processing and these chemicals are called PH indicators. Besides the chemicals, PH paper forvarious range are also available in market. The common indicators used in tannery are listed inthe table given below:
COMMON INDICATORS
S.
No.
Indicator Effective
pH range
Colour Change Concentration of
Solution01 Thymol blue 1.2 – 2.3 Red – Yellow 0.1% in 20% alcohol
02 Dimethyl yellow 2.9 – 4.0 Red – Yellow 0.1% in 90% alcohol
03 Bromophenolblue 3.0 – 4.6 Yellow – Blue 0.1% in 20% alcohol04 Congo Red 3.0 – 5.2 Blue – Red 1.0% in water05 Methyl orgnage 3.1 – 4.4 Red – Orange
Yellow
0.1% in Water
06 BromocresolGreen
3.8 – 5.4 Yellow – Blue 0.1% in alcohol 50%
07 Methyl Red 4.4 – 6.2 Red – Yellow 0.2 % in alcohol08 P- Nitrephenol 5.0 – 7.0 Colourless Yellow 0.1% in water
09 Litmus paper 5.0 – 8.0 Red – Blue 0.3% in 90% alcohol
10 BromocresolPurple
5.2 – 6.8 Yellow – Purple Blue 0.04% in 90% alcohol
11 BromothymolBlue
6.0 – 7.6 Yellow – Blue 0.1% in 20% alcohol
12 Neutral red 6.8 – 8.0 Red – Yellowish Orange 0.1% in 70% alcohol13 Phenol Red 6.8 – 8.4 Yellow – Red 0.02% in 90% alcohol14 Ocresol red 7.2 – 8.8 Yellow – Purple Red 0.1% in 20% alcohol15 Tropacoline 7.6 – 8.9 Yellowish Green pint –
Green Pink0.1% in Water
16 Phenopthaline 8.0 – 9.6 Yellow – Blue 0.1% in alcohol 20%17 Thymol Blue 8.0 – 9.6 Yellow – Blue 0.1% in 20% alcohol
18 Thymolphohaline 9.4 – 10.5 Colourless Blue 0.1% in 50% alcohol19 Alzarine Yellow 10.0 –
12.00Yellow- Brown Red 0.1% in 50%
20 Trapaeolines 11.0 – 13.0 Yellow- Orange Red 0.1% in water.
The most common indicator which is mainly used in pickling chrome tanning andneutralisation, is bromocresol green. The colour gained in different ranges are as follows:-
As discussed earlier, in processing of leather, the hides and skins are treated with avariety of chemicals. The change in quality of these chemicals have significant effect on thequality of finished leather. It is in fact essential to test the quality of each batch of everychemical before use. BIS has formulated test procedures for testing of many chemicals. But thebitter fact is that most of the chemicals are being used blindly. Few tanneries used to get theirwater tested twice or thrice in a year but this is no sufficient. The hardness of the water and
mineral contents of the water should be tested at least fortnightly. Use of soft water is alwaysadvisable. The basicity of purity of lime and sulfide should be tested before use. The basicity
PH and chrome content of basic chromium sulphate is most important factor for chrometanning operation. If these factors are not upto the specifications the leather produced will beundertanned. Similarly, for fat liquors, fat content, solubility, stability of emulsion in hard and
soft water, and PH should be tested. After knowing all these, the quantity and type of fatliquor can be determined to achieve the desired properties. The light fastness of dyes andpigments, and particle size, solubility in water are the important factors to prevent damage tothe aesthetic appearance of finished leather during wear. Particle size, molecular weight
formation of clear elastic film, viscosity, PH value of emulsion, alcoholic tolerance andmechanical stability are the important characteristics of binders which influence theperformance similarly, for top coat such as lacquer emulsions and silicons etc., the gloss, clarityof film, adhesion to bottom coat, elasticity of film etc., are the important properties whichshould be tested.
Apart from Lab tests the practical tests of all the chemicals also play an important role in judging the quality of various chemicals, leather auxiliaries and finishes.
TESTING OF FINISHED LEATHERS:
Each lot of finished leather should be tested before packing for dispatch. For this bothphysical and chemical properties of leather are measured. But as said earlier, most of thetanneries are not having their own laboratories. So the leather being dispatched is not tested.Few tanneries get their leather tested in Government laboratories once or twice in a year.
BIS has specified the method of sampling of leather in IS: 5868-1969, methods ofphysical testing is IS: 5914-1970 and methods of chemical testings in IS: 582-1970. With theguidelines provided in tanneries provided the necessary infrastructure is available.
Besides the above there are many characteristics which can be observed by practicalexperience only. There are neither standard methods for measuring these properties nor anyspecified standard provide by any institution in India. It is upto the Buyer and seller tocompromise on these properties.These are following:
a. Feelb. Fullnessc. Softnessd. Glosse. Drapef. Break
g. Evenness of finishh. Smoothness.
In most of the cases, in international market, the specifications are provided by the buyersand tanners have to stick to these specifications. Wherever, specifications are not provided bybuyers, the tanners can stick to the specifications set by BIS. The various standards relatedto tanning industry published by BIS are listed inAnnexure ‘B’.
In the Eastern U.P., the major problems faced by the artisans of leather based industriesare as under:
1. INSTITUTIONAL FINANCE.
Most of the Leather based industries in Eastern U.P. are facing Financial problems. Thepresent system for providing loans & assistance by the Financial Institutions is time taking forproposed units. There is also lack of availability of adequate Institutional Financing towardsSmall & Cottage Scale Leather based footwear industries in the State. Hence Governmentshould take initiative to solve this problems.
2. TRANSPORTATION FACILITY.
During the course of survey/discussion with artisans/whole sellers/dealers of the rawmaterials and finished goods, it was observed that they are facing problem regardingtransportation facility. As these is no transport in Faizabad and other place for carrying theirfinished products. So the dealers / whole sellers first has to send their products to Lucknow orKanpur for their onward transmission to the district of Eastern U.P. and other places.
3. MACHINERY, TOOLS AND POWER.
Though the leather footwear industry in U. P. is quite old in the places of Kanpur, AgraFaizabad, Lucknow and some of other place of Eastern U.P but the standard quality of tools forcommon use are not available in excess increase and update the efficiency of the artisansAvailability of equipments and machinery are also not adequate.
The most painful hindrance is a shortage of power. They have to run 50% of theirworking hours without power.
4. MODERN TECHNOLOGY
As stated earlier, the aritsans are engaged in the manufacturing of footwears in theEastern U.P. who are not adequate, educated and trained in this field. They have adopted veryold manufacturing method of footwear and using the poor quality of raw material due to variousproblems. Government should take initiation for proper awareness about the modern shoemaking techniques and use of latest machinery, tools and equipments. Then only they can beable to produce good quality product. It is very much needed for the units to keep constantwatch for technology up-gradation in terms of fashion design.
The recent power hike adversely effects the industry to some extent, which in turnreduces the earning. To get power supply for new units is also becoming difficult due to lengthyand delayed procedures.
6. SHOE LAST
Footwear units of this area as well as of whole U.P. are facing problems due to non-availability of standard shoe lasts. They are still today dependent on hand made wooden lastsfrom Lucknow & Agra. There is need to aware the artisans to use the PVC standard last.Recently one unit has launched manufacturing of Plastic Last in Kanpur and Agra.
7. INSOLE
The present trend of Insoling materials is cellulose based materials and non-woven
impregnated fabrics. These materials are not manufactured in the state even in the countryexcept “Flexole” and there is need to develop this type of industry in the state to fulfill therequirement of footwear manufacturers of Eastern U.P.
8. TESTING FACILITIES
Non-availability of testing facilities of raw materials and products is also responsible formanufacture of poor quality of footwear. It is very much needed for the units to keep constantwatch for technology up-gradation in terms of fashion, design and quality. For themodernization of small scale unit, financial assistance is essential. Modern productiontechniques cannot be implemented without adequate finance. The small scale units are not ableto push their products in the market because of financial constraints.
9. TRAINED MAN POWER
Another major problem for leather based industries in Eastern U.P. is lack of trainedmanpower at skilled & machine operator’s levels.
1. The artisans of Eastern U.P. should form the society and got registered with KVIB. Itshould cater the need of the artisans for imparting training for modernisation, procuringof raw materials and marketing of finished products. This Society should act as NODAL
AGENCY for the promotion and regulation of all developmental activities related with
the leather artisans.
2. The Government should give priority in allotment of land and accord early clearances toenable establishment and expansion of leather and leather products industries.
3. Adequate training facilities are not available for leather and leather based industries in theEastern U.P. This is the major reason that the development of this type of leather basedindustries are not as fast as it should be. This industry is mainly dependent upon Chennai,Western part of U.P. and West Bengal for its requirement of trained manpower.
4. Since this industry is labour oriented, the Government should gove due consideration tothis facts in administering regulatory Acts, like Factories Act.
5. Market yard may be provided at the places where availability of raw materials is moreThese market yards should have necessary facilities for Storage, Preservation andTransportation of raw materials.
6. The development of an integrated strategy for promoting the leather industry andimproving value realization requires the consideration of a number of measures aiming at
the:-
• Maximization of the availability of good quality raw materials and the revitalization ofrural leather work.
• Orientation of the production infrastructure to augment the supplier of machinerycomponents and skilled labour and to improve productivity and quality.
• Promotion of the growth of exports.
• Maximization of the availability of power in excess.
• Function Industrial Estate with common facility services like:
1. Footwear designing pattern development and pattern grading.2. Footwear testing facilities.3. Latest Machinery.4. Marketing support etc.
• Encourage to set up component industry in the state such as for the manufacture of Toepuffs/stiffeners, lasts, unit soles, Moulded insoles, shanks, tacks etc.
7. To meet the finished leather requirement by different sections of the leather productindustry, it is important to adequate availability of raw hides and skins. The following tableprovides a systematic presentation of the policy options and implications accordingly.
01. Selection of Product : a) MSME – Development InstituteGovt. of India, Ministry of MSMEE-17/18, Indl. Estate, Naini, Allahabad.
&Br. MSME – Development InstituteGovt. of India, Ministry of MSMEChandpur Indl. Estate, Varanasi.
02. Registration : District Industries Centre at District Level.
03. Tecxhnical Guidance : a) MSME – Development Institute, Allahabad.b) Br. MSME – Development Institute, Varanasi.c) District Industries Centre at District Level.
04. Land/Building/Shed : UP State Industrial Development Corporation.
05. Finance : a) UPFC for Plant & Machineryb) Nationalised Banks for Working Capitalc) Khadi & Village Industries commissiond) PICKUP, Gomti Nagar, Lucknowe) SIDBIf) NSIC
08. EDP Training Programme : a) MSME – Development Institute, Allahabad.b) Br. MSME – Development Institute, Varanasi.c) District Industries Centre at District Level.d) EDI at District Level.
Pressure die casting in aluminum alloy offers means for very rapid production ofengineering and other related component even or intricate design. The technique has obviousadvantages when a component is required in large quantities. However, for aeronautic spacedefence and automotive applications, mechanical properties and durability are of primaryimportance It is, therefore, essential that the best features of design should be employed andoptimum casting technique with minimum cost be adopted. Pressure die cast products are usedin the form of components of various electrical electronic, mechanical instruments andappliances used in domestic as well as industrial field.
Market Potentiality
The popularity of pressure die cast aluminum alloy components areses from the following
advantages it offers compared to other methods of castings.
1- High productivity2. Good as-Cast surface finish and appearance3. Do not require further machining4. Can be cast within close dimensional tolerance5. Very thin section can be cast with ease6. Metal wastage in the casting process in law7. Rejection due to casting defects is lowDemand mainly arises from the following sources.
Demand in the above areas again depends upon the primary market, replacement marketand substitution market.
The primary market is expected to continue as the leading market and, with the trend ofdemand growth to caster to the requirement of more and more new industries coming up in theabove areas of consumption the demand is expected to expand in volume at an average growthrate of 10% to 15% The replacement market is also likely to expand with more marketability ofnew products.
There are very few units in the small scale sector producing pressure die-castcomponents. Hence there is good scope for setting up this industry.
Basis & PresumptionsThe profile is drawn on the basis of following presumption:
Working Hours/shift 8 hours
No. of shift/day 1Working days 300Total No. of working hours 2400Working efficiency 75%Time period for achieving 3rd year from the date on whichmax. capacity utilistation Production will be startedLabour charges As per minimum wage
act of state Govt.Margin money 25% of capital investmentRate of interest on 15%
Fixed & working capitalOperative period of the 10 yearsProject
Value of machinery & equipment is estimated on the basis of prevailing cost of the
market.
Implementation ScheduleProject implementation will take a period of 8 months from the date of approval of the
scheme. Break up of activities with relative time for each activity is shown below:In cold chamber operations the molten metals is usually maintained at constant
temperature in an adjacent holding furnace, where transfer of successive shots to the machinechambers can be accomplished manually. Holding furnaces may be electrically heated types orthe one using immersion heating device, which has a close control over the molten metal.
The die temperature should be maintained so that castings of good quality are produced.The cast components are subjected to fitting operation for removal of getting system and
tins, if any.
2. Quality Specification
Alloys, suitable for pressure die casting and their chemical composition and mechanicalproperties are given below. Alloys 4600 and 4600A are widely used alloys for generalengineering work and are suitable for pressure die casting. These alloys have excellent fluidity,good corrosion resistance, medium strength and can be cast in intricate shapes. The other twoalloys namely, Alloy 4420 and 4520 are also held for die casting purpose depending upon theend-use of the component. The die-cast component should be free from below holes and pinholes porosity, shrinkage, cold shut, etc. They should be free from dimensional inaccuracies. Nopatching or welding shall be allowed to conceal or rectify any defects.
Table 1. Chemical Composition or Aluminium Alloys for Pressure Die Castings
(Clause 4.3)
Nature of activities Time period in month(Estimated)
1. Scheme preparation & approval 0-12. SSI provisional registration 1-23. Sanction of loan 2-54. Clearance from pollution control Board 3-45. Placement of order for delivery of M/c 4-56. Installation of machines 6-7
7. Power connection 6-78. Trial run 7-89. Commencement of production 9 onwards
Technical Aspects1) Production Details & Process of ManufactureBecause of its high melting point, aluminium-silicon alloy is die cast in cold chamber pressurein die casting machine. Metal for a single shot is loaded into a cylindrical chamber through apouring aperture, a piston then forces the metal into the die, the entire operation being
completed in a few seconds so that iron contamination is virtually eliminated. Using thistechnique much higher injection pressure in the range of 70-140MP is feasible enabling lowermetal to be employed land greater intricacy achieved. The castings are less prone to entrappedair and a higher standard of soundness ensues from the smaller amount of liquid andsolidification shrinkage occuring within the die.
Table 1. Chemical Composition or Aluminium Alloys for Pressure Die Casting (Clause 4.3)
Alloy Designation Chemical Composition, Percent (Values Given are in Maximum unless shown in a range)Copper Silicon Manganese Iron Manganese Nickel Zinc Lead Tin Titanium Aluminium
Designation Tensile strength Elongation percenton 5.65 so or 50 mm
Gauge Length
Sand Cast Chill CastMPa MP2 Sand Cast Chill Cast
1 2 3 4 5 6
4420 M - 180 - 1.54520 M 125 150 -1 2 3 4 5 64420 M - 180 - 1.54520 M 125 150 - -4600 M 165 190 5 74600A M 165 190 5 7
3. Production Capacity
Estimated production capacity -9.5M.T./monthThe capacity utilisation will be 80% after three years from the date of connencement of
production.
4. Motive Power RequirementTotal motive power requirement = 40 H.P.
5. Pollution Control NeedsThe industry does create any pollution hazard. The workshop should be well ventilated
and properly lighted fitted with exhaust fans.
6. Energy ConservationThere is little scope for energy conservation in this industry except in the melting practice
where the furnace should be properly insulated to reduce radiation loss and should be fitted withautomatic pyrometric control to maintain the furnace in the proper temperature.Financial Aspects
1. Fixed Capital
Land & Building Rented (Rs.)Covered area - 300 sft. @ Rs. 1.50 sft. p.m. 20000.00
2. Machinery & Equipmentsa) Production unit
SI No. Description Qty.(No) Price (Rs.)1. Horizontal cold chamber pressure die 1 50,00,000
Casting machine with control panel of60T capacity
2. Electrical resistance furnace for melting 1 500000aluminium, 100 kg capacity
i) Fixed capital 6745000ii) Working capital 8007600
14752600Machinery Utilisation
Financial Analysis1. Cost of production (Per year)
Total recurring cost 32030400Depreciation on machinery @ equipment @ 10% 619500Depreciation on moulds, fixture @ 25% 75000Depreciation on office equipments @ 20% 30000Interest on total investment @ 15% 2212890
34967790Say Rs. 34967000
2. Turnover (per year)
Item Qty.in per/MT Rate/Rs. Value (Rs.)per ps/MT
1. Aluminium alloy 91 MT. 435000 39585000Pressure die castcomponents
2. Net Profit per year = Total sale-cost of production(Before income-tax) = 39585000-34967790
= 4617210
4. Net Profit RatioNet Profit per year 100 - 11.6%
Turnover per year
5. Rate of Return- Net Profit per year 100 - 31%
Total investment6. Break even point (% of total production)i) Fixed cost (F.C.)
Rs.a) Depreciation on machines & equipments 724500b) Interest on total investment 2212890c) 40% of salary & wages 596160d) 40% of other contingent exp. 744000
QUALITY AND STANDARDS :MONTH AND YEAR : january, 2011
OF PREPATATION :
PREPARED BY : Branch- M.S.M.E.Development Institute
Chandpur Indl. Estate
Varanasi 221106
IntroductionMild steel Ingots are the basic raw material for the manufacture of various types of
re-rolled products, for e.g. rounds, flats, channels equal and upequal angles etc. A majorpart of this re-rolled products in the form of cold-twisted deformed bars are used in
building construction as reinforecement.
MarketThere are good No of units engaged in re-rolling for production of rounds channels
flats cold twisted deformed bars. M.S. ingots are basic raw materiel of re-rolling millsHence market paternal of M.S. mgot is very bright in future the demand will be inincurring order.
Basic & Presumptions
(1) 75% of the envisaged capacity is taken as efficiency on single working shift of 8hrs duration.(2) One year is required for achieving envisaged capacity utilisation.(3) Labour, wages have been considered based on the prevailing wage practice inAndhra Pradesh.(4) Margin money -25%(5) The estimated life of project is about 5 years.(6) Land cost, construction cost, rent etc. have been considered based on the
prevailing costs in the urban areas.(7) The costs of machinery and equipment ware taken based on the prevailing costsin the market
Implementation ScheduleThe Project can be implemented in a period of 18 to 24 months by performing
the various activities in a systematic planning and simultaneous application of variouscommon activities.
Technical Aspectsa) Production Details & Process of Manufacture
M.S. Scraps of predetermined composition are charged in the inductionmelting furnace, melted and temperature raised to the desired level of pouring. At
the same time duplex type C.I. moulds are also kept ready with appropriate cores forpouring.
b) Quality Specificationsc) Production Capacity
a) Quantity 1140b) Value 57000000
d) Approximate power requirement : 800 HP.e) Pollution Control
No pollution control needs/requirements excepting providing exhaust fans andchimnesy.f) Energy conservation
In the present up energy can be conserved by proper selection and charging ofscrap in a pre-heated condition.
Machinery UtilisationSince the number of operations involved in the process is less, three are less chances of
bottlenecking operations for this product.
Financial Analysis
1) Cost of Production (per year)
Total Recurring cost per year 42972000Depreciation of machinery and equip- 502000ment @ 10%Depreciation of furnaces @ 25% 2125000Depreciation of office equipment 20% 10000Interest on total investment @ 15% 3846750
Grinding Media are cast steel balls with the help of which ores, minerals, vlauable stones andother similar hard materials are converted into powder form in ball mills. Material to be powdered isfed into the ball mill where it comes in between grinding media which are rotated continuously till the
desired size powder of the material is produced. Grinding media is used in the beneficiation of Iron ,Copper, Zinc and aluminium ores, in the cement plant, in the refractory manufacturing units and inother industries where powder from hard materials are required.
Market
Grinding media is mainly required by core-sector Industries and, being a consumable item itsdemand is good wherever it is required in the country. Generally steel Foundries produce this item andpresently there are considerable number of stell foundries in safaris availability of raw materials isconcerned, these are abundantly present within the country.
Basis and presentations1. The unit will run two shifts per day and 15 days in anonth.2. It is proposed to run the unit throughout at 75% capacity. However, for
calculation purposes, cent percent capacity utilisation has been taken into account.3. The salary and wages have been taken together and additional 15% has
been incorporated to meet ESI, CPF and other perquisites.4. Interest rates both for fixed and working capital has been calculated at 5% p.a.5. It is assumed that for all types of loans, a margin of 30% should be borne by
the party.6. Pay back period is only five years with a moratorium of one year.
7. The land and construction cost has been taken into account as prevailing in andaround Rayagada.
Implementation ScheduleIt will take around 11 months to complete each activity of the project till the trial run is
achieved. The details are as under:1. Project report preparation 21 / 2 months2. Selection of site, registraton as SSI 31 / 2 months
3. Machinery procurement 3 months4. Erection and commissioning 1 months5. Procurement of raw materials, 1 months
Recruitment of labours & Trial run. ________11 months________
Technical Aspects
1. Manufacturing ProcessThe process of manufacturing of Grinding Media consists of (1) Pattern making, (2)
Moulding, (3) Melting, (4) Fettling and (5) Inspection.It is presumed that the patterns will be supplied by customers or they will be obtained
from outside pattern makers. The moulding sand is prepared by adding suitable proportion ofvarious ingredients and the moulds are prepared with the help of patterns. The M.S. Scrap is
melted in the Induction Furnace at a temperature of about 1600°C & alloying elements are
added. The molten metal is then taken into laddles and poured into the moulds. After thecastings are solidified, they are knocked out from the mould boxes and runner risers are cut offwith gas cutting setand castings are cleaned by hand grinder. After that castings are annealed inannealing furnace and inspected.
2. Quality ControlGrinding castings are usually inspected for thecasting defects and examined forming to
Is-0079-1980.The castings are usually inspected for the casting defects and examined for hardness,
chemical composition and microstructure etc.Similarly, quality control of moulding sand with respect to sand grain seze and fusion
point, moisture permeability and green compression strength is equally important. A proper
surface in the sand mould most be ensured for soundness and good surface of the casting.
3. Production CapacityQuantity 250 MTValue 17500000
4. Approximate power requirement for the proposed unit would be 7, 000 KWH per
month.
5. Pollution ControlThe unit should usually follw the pollution control measures meant for steel melting and
sand drilling sections by providing exhaust fans, proper ventilations etc.
6. Energy Conservation
a) Gradual heating of the scrap in the crucible provided in the inductionfurnace may save some energy.
b) Usinginsulating bricks touching inside face of outer sheel of the herttretment furnace may also save some energy.
_____________________________________________________________Particulars Qty. Rate per kg. Value (Rs.)_____________________________________________________________
a) Steel scrap 23 MT 30 690000b) Petroleum coke 170 kg. 40 6800c) Fe-Cr,Fe-Si, LS 50,000
Fe-Mn etc.d) Sand 100 kg. 6 6000e) Bentonite dextrine, LS 20000
Equipment @ 10%Depreciation on furnce @ 20% 300000Depreciation on office equipment and 20000other fixtures @ 20%Interest on total investment 15% 1272600Total cost of production 14129500
2. Turnover (per year)______________________________________________________________Item Qty. Rate Value (Rs.)______________________________________________________________Grinding Media 200 MT 70 per kg 17500000
3. Net Profit Ratio- Net Profit p.a. 100 - 19%
Turnover p.a
5. Rate of Return- Net Profit p.a. 100 - 39%
Total investment
6. Break-even Point(% of total production envisaged)i) Fixed Cost
Rs.a) Depreciation (on building, machinery 520000
fixtures, furnace & office equipment)b) Interest on total investment 1272600c) Insurance 120000d) 40% of other contingent expenses 384000
(excluding rent and insurance)e) 40% of Salary & Wages 54370
Total fixed cost 2840320ii) Net profit per year (as at SI. H.3) 3370500
loZizFke iEi ds fMtkbu os Mªkbax ds vuqlkj enq Likr pknj ls 8**Mk;ehVj dk ikbi cukdj e'khfuax dj ysrs gS] blds ckn e`nq Likr ,sxy lsMªkbax ds vuqlkj vk/kkj Qz se cukrs gS rRi'pkr~ ikbi dks csfYMax dh lgk;rkls fQDl dj nsrs gSA bl ikbi es a lD'ku ikbi fQV djus gsrq fjM;wlj yxk nsrs gS
lk/kkj.kr;k lD'ku gsrq ¶ysfDl,cqy IykfLVd iz;ksx es a ykrs gS]lD'ku gsrq fiLVu vko';drkuqlkj e'khfuax dj fQV dj ysrs gS] bl iEi
es a nks vnn pSdoky dh vko';drk iM+rh gS tks cktkj es a miyC/k gksrk gS] bls[kjhn dj fQV dj nsrs gS eksckby iEi cukuk gS rks QkmUMs'k gsrq iEiQs ze es a O;oLFkk dj nsrs gSA ikuh ds fMyojh gsrq e`nq Likr pknj ls Vªs cukdj Åijh
(i) ifj;kstuk ,d eghus es a 35 fnu ,d ikjh es a 75 dk;Z{kerk ds vk/kkj ij rS;kj dh xbZ gSA
(ii) ifj;kstuk es a C;kt dh nj vkSlr :i ls 20 ds vk/kkj ij ekuh xbZ gS] rFkkfi bu vkdM+ks es a ifjorZu ifj;kstuk ds foRrh; ifjO;; ds vfrfjDr ;wfuV dh vofLFkfr ij fuHkZ j djrk gSA(iii) ;kstuk es a larqyu Lrj fcanq dk fglkc lEiw.kZ {kerk dk bLrseky djus ds vk/kkj ij yxk;kx;k gSA(iv) LiSuLkZ ds ,d lsV es a 6 VqdM+ s gksrs gS% lsV ds fuEufyf[kr vkdkj gksrs gSA
IV. ifj;kstuk dk vk/kkj rFkk iwokZuqeku1- ;g ekuk x;k fd ;wfuV es a 300 fnu ,d ikjh vk/kkj ij dk;Z djsxkA2- e'khujh dh dher cktkj dh vkSlr n'kkZrh gSA
V. mRiknu C;kS js vkS j fofuekZ.k dh izfdz;kchtofi= ds eq[; Hkkx gS% Qz se] ifg,] cht j[kus dk fMCck] [kM+ h xksy f>jhaokyk ifg;k vFkok nksgjk ju izHkj.k vkS j dw aM [kksyus okykA Qz se lkekU;r% dks.k dk cuk gksrk gSA vkS j fdukjks ls izcfyr gksrk gSA /kq jhes a ryk gksrk gS ftlds s izR;sd fljs ij ifg, gksrs gS] cht j[kus dk fMCck Åij gksrk gS tcfd dw aM [kksyus okysuhps yVds gksrs gSA /kq jh ds izR;sd fljs ij csyu&/kk:d dk iz;ksx gksrk gSA cht j[kus ds fMCcs ,e-,l- 'khVds s cus gksrs gSA ,d dls gq, <+dus dh O;oLFkk gksrh gS rkfd fMCcs es a o"kkZ dk ikuh izos'k u dj ldsA fMCcs dsvUnj ikoj ls pyus okys foyksMd gksrs gSA nks izdkj dh izHkj.k O;oLFkkvks a es a ls [kM+ h xksy f>jhaokyk ifg;kizHkj.k ljy ekuk x;k gS vkS j lekU;r% blh dk iz;ksx fd;k tkrk gSA bles a izHkj.k osYyd izHkj.k foPNsn vkS jlek;ksT; xsV gksrk gSA izHkj.k osYyd 'ks¶V ls eqM+rk gS vkS j vukt dks xsV ls ckgj /kdsyrk gS tgka ls ;gcht V~;wc es a fxjrk gSA fofHkUu izdkj ds chtks a ds fy, xsV lek;ksT; gS ikoj eq[; /kq jh ls izHkj.k 'ks¶V es
fx;j] narqfjdkvks a vkS j J a[kykvks a }kjk iz sf"kr dh tkrh gSA cht V~;wc cht dk lapkyu] izHkj.k ls lkeku/kkuh es tgka ls og dw aM es a fxjrs gS] djrh gSA dw aM [kksy okys ¼Qq jks vksiuj½ d"kZ.k n.M }kjk cjes a ds Qz se ls yxs gksrsgSA
chtofi=ks a dk fofuekZ.k djus es a ljy lafojpu vkS j leUok;kstu 'kkfey gSA bLikr ds VqdM+ s vkS j pknjs dkV dj Mªkabx ds vuqlkj fgLls rS;kj fd, tkrs gS vkS j tksM+ s tkrs gSA dqN ?kVd tSls narqfjdk,a] J` a[kyk,¼LijksdsV~l psUl½ vkfn [kjhnus gks axsA