Business in LEATHER FOOTWEAR Sector

Small or medium sized business in Leather Footwear sector offers many opportunities in Pakistan. But it is important that those who want to select & pursue such business should have some knowledge, experience and most importantly passion for the Leather footwear  sector. Otherwise, the probability for failure may be high.

Below are some of the selected businesses in Leather footwear sector.  SMEDA has also made very good pre-feasibility studies on this sector.

For the complete detailed pre-feasibility reports, you will first have to register with SMEDA and then you can download it FREE.

For registration, you may click the link:  SMEDA Registration

Below are the summarized versions of the pre-feasibility reports by SMEDA on Business in Leather footwear sector for you to get an idea before you download the full version.

1 - Ladies Shoes Manufacturing Unit 

Region: Punjab
Investment Size: PKR Between 5-10 Million

This pre-feasibility study is for setting up of a semi-mechanized shoe manufacturing unit exclusively for ladies. Footwear manufacturing is a process of manufacturing shoes according to the market need in respect to design and size, trends etc. The unit is assumed to be set up in any city with already established units, such as Karachi, Faisalabad, Hyderabad, Sahiwal, Gujranwala and Rawalpindi. Shoe manufacturing industry can be broadly categorized into two main segments i.e. organized and unorganized sector. The organized sector comprises of fully mechanized shoe manufacturing units. These mainly include Bata Pakistan Limited, Servis Industries Limited, Footlib Limited, Firhaj Footwear (Pvt) Limited, and a few other units. The unorganized sector comprises of labour intensive units having semi-mechanized manufacturing facilities, with relatively modest capital investments, as compared to fully mechanized plants. The total project cost for setting up this workshop is estimated at Rs. 7.801 million. The project is financed through 50% debt and 50% equity. The project NPV is around Rs. 56.885 million, with an IRR of 56% and payback period of 3.60 years. The legal business status of this project is proposed as ‘Sole Proprietorship’. The unit is proposed to operate 8 hours everyday. The proposed maximum capacity of the unit is 600 pairs per day. During the first year 40% capacity is assumed, which increases at a rate of 10% each year and assumes maximum capacity of 95% in seventh year of operations.

2 - Leather Garments Manufacturing Unit 

Region: Punjab
Investment Size: PKR Between 5-10 Million

The proposed project presents an investment opportunity in Leather Garments Manufacturing Unit. Major products will include Leather Jackets, Biker Jackets and Over-coats for men, women and children. However, the product line can be extended to manufacture all kinds of leather garments.

3 - Leather Gloves Manufacturing Unit (Fashion Gloves) 

Region: Punjab
Investment Size: PKR Between 10-20 Million

This document provides details regarding setting up a fashion leather gloves manufacturing unit. The unit will be capable of producing on average 1,250 pairs of fancy/fashion gloves per day. For this purpose 50 stitching machines will be acquired. The manufacture of fancy / fashion glove is less complex as compared to sports gloves, therefore, more quantities of these gloves can be manufactured daily. The proposed unit is also capable of manufacturing sports & working gloves.

4 - Leather Goods Manufacturing Unit (Wallets) 

Region: Punjab
Investment Size: PKR Between 1-2 Million

The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs to facilitate investment and provide an overview about leather garments manufacturing unit. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective, the document covers various aspects of leather goods (wallets) manufacturing start-up, production, finance and business management. The document also provides sectoral information, brief on government policies and international scenario, which have some bearing on the project itself. This particular pre-feasibility is regarding “Leather Wallets” which comes under “Leather” sector. Before studying the whole document one must consider following critical aspects, which form the basis of any investment decision. This proposed project presents details about the investment opportunity in the area of leather goods manufacturing. The product being focused is leather wallet. However the unit is also capable of manufacturing leather key rings, credit card holders, ladies bill folders and other small articles of leather without any addition of machinery



For the complete detailed pre-feasibility reports, you will first have to register with SMEDA and then you can download it FREE.

For registration, you may click the link:  SMEDA Registration



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