How to Start Leather Belt Making Manufacturing Business – Complete Guide

Do you want to start a leather belt manufacturing business? If yes, you are in the right place. Here in this article, we have listed all the steps to follow to start a successful leather belt-making business with costs, licenses, machinery, and more.

Why Start a Leather Belt Manufacturing Unit in India?

Some of the main reasons for starting a leather manufacturing business in India are listed below:

⇒ Abundant Raw Material Availability

India is one of the largest producers of raw leather globally, with access to a diverse range of hides and skins from cattle, buffalo, goat, and sheep. This abundant raw material availability ensures a steady supply for leather manufacturing businesses.

⇒ Skilled Workforce

India has a rich tradition of leather craftsmanship, with skilled artisans proficient in various techniques such as tanning, dyeing, cutting, stitching, and finishing. Employing this skilled workforce can ensure high-quality craftsmanship and product excellence.

⇒ Cost-Effectiveness

The cost of labor and production in India is relatively lower compared to many other countries, making it a cost-effective destination for leather manufacturing. This cost advantage enables leather manufacturers to offer competitive pricing while maintaining profitability.

⇒ Growing Domestic and Export Markets

India has a sizable domestic market for leather products, including belts, footwear, bags, and garments. Additionally, there is a growing demand for Indian leather products in international markets due to their quality, craftsmanship, and affordability.

⇒ Government Support

The Indian government provides various incentives and subsidies to promote the leather industry, such as the Leather Development Programme, Technology Upgradation Fund Scheme (TUFS), and Export Promotion Capital Goods (EPCG) Scheme. These initiatives support the growth and competitiveness of leather manufacturing businesses.

⇒ Infrastructure and Clusters

India has established leather manufacturing clusters in several states like Tamil Nadu, Uttar Pradesh, West Bengal, and Maharashtra, providing access to specialized infrastructure, technology, and logistics facilities. These clusters offer a conducive environment for setting up and scaling leather manufacturing units.

⇒ Integration with the Fashion Industry

India’s thriving fashion industry and evolving consumer preferences create opportunities for leather manufacturers to collaborate with designers, brands, and retailers. By staying abreast of fashion trends and offering innovative designs, leather manufacturers can capitalize on this integration and expand their market reach.

12 Steps to Start a Leather Belt-Making 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 and 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

A manufacturing business needs 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 a Leather Belt Manufacturing Machine and 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. Select a Location

Choose a suitable location for your manufacturing unit. Consider factors such as proximity to raw material suppliers, transportation facilities, and availability of skilled labour. Ensure that the chosen location complies with zoning regulations.

7. 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.

8. 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 the 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. 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.

9. Hire Skilled Workforce

Hire skilled craftsmen with experience in leatherworking. Look for individuals with expertise in cutting, stitching, and finishing leather belts. Provide training if necessary to ensure that your workforce meets the quality standards expected by your customers.

10. Product Development

Develop a range of leather belt designs that cater to different customer preferences. Consider factors such as belt width, buckle styles, and leather finishes. Experiment with different colours, textures, and patterns to create unique and attractive designs.

11. Have a Marketing Plan

Develop a marketing strategy to promote your leather belts. Utilize online platforms such as e-commerce websites, social media, and your website to reach a wider audience. Participate in trade fairs, exhibitions, and fashion events to showcase your products. Establish partnerships with retailers, boutiques, and fashion outlets for distribution.

12. Customer Feedback and Adaptation

Listen to customer feedback and adapt your products and services accordingly. Stay updated on market trends and consumer preferences to remain competitive in the industry.

Frequently Asked Questions

Is the leather belt manufacturing business profitable?

In India, the leather industry is in a predominant position with substantial export revenue generation thereby providing economic 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 labour, 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.

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 be in the range of Rs 3 to 5 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.

What are the key factors to consider before starting a leather belt manufacturing business?

Before starting a leather belt manufacturing business, it’s essential to consider factors such as market demand, competition analysis, location selection, sourcing of raw materials, equipment procurement, and legal requirements.

What are the typical challenges faced in the leather belt manufacturing business?

Some common challenges in the leather belt manufacturing business include fluctuating raw material prices, maintaining consistent quality standards, keeping up with changing fashion trends and competing with low-cost imports.