How to Start Leather Belt Making Manufacturing Business

The leather belt manufacturing process is simple. The manufacturing operation doesn’t demand a lot of space. Leather belts are made in different widths and lengths to suit customers of all age groups and builds.

The leather used is plain or chrome-tanned cowhides of even substance in different colors and shades of mainly black and brown. The buckles used are in different attractive designs and plated. They are detachable and fitted as per the customer’s choice.

A leather belt manufacturing unit with a single-shift operation and taking 25 working days in a month is a financially viable project for entrepreneurs.

Here are the 8 Steps to Start Leather Belt Manufacturing Business

1. Research the Market

The first step before starting any manufacturing business is to find out the local demand for the finished product. The other factors that must be considered are competition from other manufacturers, pricing of a similar item, etc. It is advised to do exhaustive market research and explore the feedback to your advantage.

2. Create a Business Plan

After you receive the market information, it is time to draft a business project plan. If you can’t do it yourself, hire a competent plan writer to do the job. Some of the basic chapters your plan document must include are the following:

• Mission & Vision
• Industry Profile
• Products & Services
• Pricing Plan
• Financial Plan
• Manpower Plan
• Operational Plan
• Marketing Plan

3. Registration & Licenses

Starting a small-scale leather belt manufacturing unit where the raw material is finished leather doesn’t require so many licensing formalities. You will need to obtain the following registrations and licenses:

• Business registration with ROC
• Trade License from Municipal Authority
• Udyog Aadhaar MSME Registration
• GST Registration
• IEC Number or Export License from the Directorate General of Foreign Trade (DGFT) if you want to export leather belts from India.

Leather belt manufacturing unit does not create any kind of pollution and as such, there is no need to take any preventive measures for pollution control.

4. Name Your Business

It is important for a manufacturing business to have a catchy and attractive name. This is because a relatable name helps in identifying the company with its products. Check our detailed guide on how to name a business name to know more.

5. Buy Leather Belt Manufacturing Machine & Raw Material

• Strap-cutting machine power-operated
• Upper Leather skiving machine
• Single Needle flatbed Industrial Sewing Machine 31 ND 15 Merrit
• Side creasing machine
• Hand tools and other necessary equipment.

The major raw materials are chrome-tanned upper leather and split upper. Other required materials are the buckle, thread, solution, etc. Additionally, you will also need to arrange the packaging consumables.

6. Arrange Funds

The approximate cost of starting a medium-scale leather manufacturing unit is around 15 to 20 Lacs in Indian Rupees. If you do not have the required funds, make a plan to arrange so. There are various ways to arrange funds for starting a business. You can apply for government loans, government subsidies, etc. For small expenses, carrying a business credit card can be immensely helpful for new manufacturers.

7. Learn Leather Belt Manufacturing Process

After selecting the right leather, cut the belts of different sizes with a strap-cutting machine. Additionally, skive it from the edges. Similarly, cut the lining of the same sizes of required leather.

Then, fold the skived edges. Then the lining is attached by paste. After pasting the belts, stitch them with help of a stitching machine. Additionally, trim the excess lining properly. Then carry out the other operations like buckle attaching edge setting punching according to the design.

You must maintain quality control and standards in leather belt manufacturing. Basically, you must procure good-quality raw materials, select appropriate designs, and perform strict supervision during the manufacturing process.

Finally, inspect the belts properly and then pack them.

8. Have a Marketing Plan

If you do not have a good and effective marketing strategy, it will be difficult to make your leather belt manufacturing business successful. Reach out to local gift shops, retail stores, and distributors to make an effective distribution network for your leather belt products. Do not forget to create a website. It is observed that more and more people are buying products online at present.

Frequently Asked Questions

Is Leather Belt Manufacturing Business Profitable?

In India, the leather industry is in a predominant position with substantial export revenue generation and thereby providing economical growth. Indian leather industry is one of the top 8 industries for export revenue generation in India, holding 10% of the global raw material, and 2% of the global trade.

India enjoys competitive benefits such as the availability of abundant raw materials, cheap and skilled labor, supporting institutions for industrial development, and a supportive domestic market.

A recent survey states that India has the largest livestock in the world. Moreover, the country possesses the largest population of buffaloes, goats, and sheep. India also has the world’s largest technically trained manpower in leathercraft, which enables it to surpass its competitors in the global market.

The major markets for Indian Leather & Leather Products are Germany with a share of 12.32%, the USA at 11.83%, the U.K. at 11.57%, Italy at 7.76%, France at 5.72%, Hong Kong at 6.50%, Spain at 5.41%, Netherlands 3.46%, China 2.99%, Denmark 1.29%, UAE 4.3%, Belgium 1.68%.

What is the Cost of Starting a Leather Belt Manufacturing Business?

The investment needed will majorly depend on the scale and size of the manufacturing unit. At present, the cost of a single unit leather belt manufacturing machine will cost in the range of Rs 2 to 4 Lacs. On a small scale, the cost of starting a small-scale leather belt manufacturing unit will be around Rs. 10 Lacs.

What is the Profit Margin of Leather Belt Items?

If planned properly, a manufacturer can make a 25% to 30% profit margin easily selling leather belt products.