Startup

Manufacturing Process of the Leather Belt Making in India

Introduction

In India, the Leather business, from time immemorial, has continued to soar from heights to even greater heights. Leather belts are one of the most timeless and versatile fashion choices in the whole world. For decades there has been a steady use of leather belts in many people’s daily life. The leather belt-making industry has been one of the profit-making industries in India. In India, the leather industry is around 13% of the whole world’s leather production. Leather belts are popular not only in India but in many countries around the world. India is amongst the top three exporters of leather belts in the world, along with China and Italy. India exports around 290,226 shipments, while China and Italy export around 82.583 and 74,113 shipments, respectively. The majority of the leather accessories and goods from India are exported to countries like Germany, the United Kingdom and the United States of America. The leather belt industry has a universal appeal which grows their demand day by day. The leather belt industry requires raw materials in abundance, and it requires cheap labour, which are both present in India. In the year 2021-2022, Indian leather industry goods touched around 4.87 billion US dollars.

Manufacturing Process of Leather Belt

Raw Materials and Equipment Required in Opening a Leather Belt-Making Business

Many different types of raw materials can be used in making leather belts. Some of the general raw materials used in the manufacturing process of leather belts are:

• Leather
• Colours
• Decorating items
• Buckles of different types
• Hand tools
• Different threads
• Cloths

Some of the equipment used in a leather belt-making business:

• Different Machinery
• Machinery for cutting
• Decorating tools
• Cutting tools
• Strap cutting machine
• Sewing machine
• Punching holes in machines or tools
• Machines for side creasing
• Skiving machinery
• Materials for packaging
• Scissors

Important Registrations and Licenses Required for Opening a Leather Belt-Making Business

1. Company Registration: It is required to register a business with the Ministry of Corporate Affairs whenever one gets started. When a business is registered, it acquires the status of a legal person that is both able to be sued and to bring legal action against others. There are several forms of company registration, and you must select the one that best fits your needs and those of your business. The first and most crucial stage whenever a company is launched is company registration. The company appears more dependable and trustworthy when it has a registration.
2. Trade License: Put, A trade license is a permit needed to transact in a specific type of product. This kind of license serves as the business owner’s authorization to transact the items for which the license is issued. A trade license is required before you can begin trading. There may be fines or penalties for not having a trade license.
3. Export License: An export license is a specific type of license granted for the export of goods or services. It acts as a permit from the government to export certain goods to various countries. An export license contains the basic information of the exporter and his company.
4. MSME Registration: MSME registration can be availed online for small and medium-sized industries in India. This scheme provides many benefits to entrepreneurs. This registration can provide many tax benefits, exemptions, less cost of patents etc.
5. GST Registration: All businesses operating in India are required to be registered for GST. GST is a kind of tax that is imposed in India on both goods and services. All companies that offer both products and services must register for GST. GST is a single indirect tax that is imposed on all Indian company owners. The business owner is required to register the company for GST and submit all returns within the deadlines specified. The rate of GST:

Goods	GST Rate
Belts made up of leather or composition leather	12%

6. Trademark Registration: When a company is founded, building a brand is essential. A business can grant itself the exclusive right to use its name and brand and stop others from doing the same by registering a trademark. Registration of a trademark is essential in an increasingly competitive marketplace.

Process of Opening a Leather Belt-Making Business

1. Market Research: One of the key steps before starting a business is always to undertake market research on the target sector. The demographics of the company that makes leather belts are different since the people who use leather belts are of different genders and ages. To understand and learn about the market before launching a leather belt manufacturing company, market research is essential.
2. Setting up Capital: A significant portion of your initial capital will be used to hire a simple but functional production facility. The bulk of your investment would go towards the essential machinery needed to complete the production of leather belts.
3. Deciding infrastructure and location: The next step is selecting the infrastructure. The infrastructure can be influenced by the type of unit being created. If the company is to be developed at such magnitude, the infrastructure will be selected on a massive scale. The cost of transporting your finished goods and raw materials to and from your production plant and warehouse can be reduced if you choose a location that is convenient for your leather belt manufacturing company.
4. Buying Machinery and Raw Materials: The necessary equipment and raw materials must then be purchased. Fabric, top leather, chrome leather, leather, ornamental accessories, and other materials like hooks and holders etc., are required if you wish to supply a leather belt. Along with the basic components, certain equipment will also be needed. The business of making leather belts does not require significant investment.
5. Required licenses and registrations: All the necessary licenses and registrations should be availed.
6. Hire Workforce: Hiring a skilled workforce is one of the important steps. This worker will be the main productive unit in the whole manufacturing unit. Skilled and experienced labourers will increase the productivity and quality of goods.
7. Marketing goods and deciding on a sales channel: In the current digital era, a business can be conducted solely on online platforms or on offline and online. You can decide the sales channel which is best for achieving your set goals and market the goods on those platforms so they reach the target audience.
8. Starting the Business: The final step in the process is starting the business. Once all the above steps are covered, the manufacturing is all set to start production and sell the products.

How Important Is The Import Of Leather Products in India?

Leather is reportedly produced and imported in large quantities in India. Indian buyers comprise 3% of all leather imported internationally. The major importers are the United States, Germany, the United Kingdom, Italy, Hong Kong, Japan, France, and South Korea.

How Is The Growth Of Leather Belt By Exporting It To Other Countries?

It has been estimated that the leather industry makes a considerable contribution to export revenue. It is one of the top 8 industries in India for export revenue generation. India has access to more than 10% of the world’s raw resources, which offers the leather belt manufacturing sector tremendous export potential.

Conclusion

To start any business, a detailed plan is required; similarly, for setting up a manufacturing unit for a leather belt, a business plan is required along with raw materials and equipment. The leather belt industry is one of the most profit-making industries in India. A business will only be successful if all the necessary licenses and registration are done and all rules and regulations are in compliance.

Frequently Asked Questions