Children Shoes

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Product Code 291101003 (Leather shoe)
Quality and Standards As Per Buyer's Specification
Production Capacity Qty. : 1,80,000 pairs (per annum) Value : Rs. 49200000
Uploaded on March 2007


Children Shoes are used for protecting the children foot from injuries from stones, nails, broken glass pieces fallen on the road, infection from the dust, dirt, mud, water and to feel comfort during different climatic conditions. Children shoes in particular, are very important in order to save the foot not only from above incidents 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 as well as public schools and these are mainly of a specific style i.e. derby with black colour. The shoes worn by the children 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 be well designed in order to have enough space inside the shoe, flexible, light weight, descent look in addition to correct fitting. In this project, it has been proposed to manufacture both children school shoes and children fancy shoes. Although these products are available with different materials like coated fabrics, textile, and a combination of variety 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 and the fancy shoes can be made with different styles such as boots, trainers and other descent look models by using single or multi coloured leather components and PVC or TPR soles.

Market Potential

The demand of the Children shoes is increasing day by day in tune with the growth of population, their economic standards, education system and fashion consciousness every where in the country. The increasing number of public schools vis-a vis the number of school going children and foot care awareness along with the fashion 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 export worthiness of such products from our country is bright, seeing the present trend. Shoe units aiming to manufacture children shoe of different types, can, therefore, sustain viably by catering to the increasing needs.

Basis and Presumptions

This project profile has been prepared based on the following assumptions

Working Hours Double shift of 8 hours each i.e 16 hours a day for 300 working days in a year
Capacity Utilisation 60% during first year
70% during second year
80% during 3rd year and onwards
Entrepreneur Preferably by one or group of promoters having knowledge/experience in leather and footwear field and /or venturing to start leather based units.
Location Any where in India, preferably near any township.
Land and Building Cost is calculated as per prevailing market rates
Important Raw Materials Chrome tanned cow softy upper leather, flexible insole and PVC/TPR Soles.
Salary and Wages All the employees are paid on monthly basis.
Transportation and Taxes on purchase Included in purchase price
Power Charges Rs.4 per KWH from power supply source
5% on building and civil construction
10% on plant and machinery
Depreciation 25% on Tools and equipments
20% on furniture and fixture
10% on other fixed assets
Margin Money 30% of total capital investment
Interest Charges 12% has been calculated on total capital investment.
100% insurance, interest and depreciation
40% of total salary and wages
Fixed Cost for BEP Analysis 40% of total utilities and other Contingent expenses excluding insurance

Implementation Schedule


Period (in months)

Site selection, negotiation with land lord, market survey, Preparation of project report and other formalities 2
Seeking quotation of machines, purchase and installation and power connection 2
Trial production, arranging working capital, Procurement of raw material and market tie-up 2
Total period required for commencing commercial production 6

Technical Aspects

Process of Manufacture

In this project, the children shoes are proposed to be manufactured in two different types i.e.:

(i) Children school shoes, and (ii) Children fancy shoes. The former is derby type and is normally made from black coloured chrome tanned cow softy upper leather and the later is of fancy type with single or brilliant 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 master patterns are developed. Then these patterns are graded into different sizes and dies are prepared.

Clicking: The upper, lining and sock components are cut from suitable materials by the help of dies with the clicking press. While clicking, it is essential to consider the importance of the components and the corresponding portion of leather, directional properties of components and that of leather portion, degree of defects, and the best possible inter lock to have minimum wastage. The components are to be necessarily marked with sizes and sides are kept separately to avoid the confusion.

Closing: The cut components are checked to sizes and defects, skived to the edges, folded and other edge treatments are done as per 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 next operation.

Bottom components preparation: Bottom components such as the insole, toe-puff and stiffeners are cut from suitable materials and 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 insole is fixed on the last and the upper is mounted (Lasting) onto it by pulling the toe part, back part and finally the side portion. The edges are hammered for smooth feather edge. The bottom filling is done into the cavity formed due to lasting. The surface is then scoured and roughened to get levelled but rough surface is then cleaned with solvent like MEK and dried. Both the sole and lasted upper surface are then applied polyurethane adhesive and allowed to dry completely. The dried surfaces are then reactivated to gain adhesion properties and then the sole is fitted on the lasted upper accurately and pressed under sole attachment machine for strong and permanent bond. In this condition the shoe is kept for few hours for a permanent shape.

Finishing:The upper and sole is then cleaned and finished with the wax and other finishing chemicals. The shoe is then de-lasted, cleaned from inside, inserted with stamped sock lining, the laces are attached, inspected and packed for dispatch.

Quality Control and Standards

The quality of children shoe has to be maintained as per buyer's specification. However, the main criteria for quality control are selection of suitable materials (especially the leather with required thickness, shade, strength and softness) cutting components from suitable portions of leather, assembling, regular stitching with suitable thread with specified stitch length and finishing, lasting, alignment, sole attachment, finishing and packing.

Production Capacity

i) Children school shoes 90,000 Pairs of Rs. 19200000
ii) Children fancy shoes 90,000 Pairs of Rs. 30000000
Motive Power 20 HP.

Pollution Control

Although shoe industry does not discharge any pollutants, the following precautions are to be considered for a better environment:

The adhesives prescribed are mainly solvent based and are inflammable and toxic in nature. It can cause problems, if inhaled. Therefore, a solvent extraction system is required in adhesive application area. Further the dust developed during scouring and roughing or even during finishing are necessarily to be collected through an exhaustion system attached to the concerned machine for making the work place dust free.

Energy Conservation

All machines are power driven and are run individually, whenever required.

Financial Aspects

Fixed Capital

(i) Land and Building
Land 500 sq. mtr @ Rs 3500/- per 1750000
Office building, Lab. Store @ 7000/mtr. 700000
Floor area construction ,factory shed, Boundary wall etc. 300 @ 5000 1500000
Total 3950000

(ii) Plant and Machinery

Name of the Machine and Specification

Ind/ Imp

Qty (Nos.)

Price (Rs)

Total (Rs)

Swing arm hydraulic clicking press, 16 ton Ind 1 220000 220000
Pneumatic stamping machine-stamping wheel (0-9 Nos,) (A-Z) -do- 1 110000 110000
Upper Skiving machine -do- 2 60000 120000
Flat bed single needle sewing machine -do- 3 30000 90000
Post bed single needle sewing machine -do- 3 54000 162000
Roughing and Scouring machine -do- 1 4,000 45000
Reactivation chamber -do- 1 22000 22000
Pneumatic Sole attachment machine -do- 1 70000 70000
Combined finishing machine -do- 1 36000 36000
Pneumatic de-lasting machine -do- 1 30000 30000
Spray booth and spray gun -do- 1 13000 13000
Air compressor and distribution system -do- 1 23000 23000
Lasting jack -do- 10 60000 60000
Cost of tube well, OHD, Water Supply system       100000
Excise, sales tax & erection and installation charges 40% of total of 1 to 13       400400
Total 1501400

(iii) Tools and Equipments and Other Fixed Assets

Name of the Equipments

Ind/ Imp

Qty (Nos.)

Price (Rs)

Total (Rs)

Shoe designer's tool kit Ind 2 set 5000 10000
Shoe maker's tool kit -do- 10 sets 2500 25000
Machine maintenance and electricians tool kit -do- 1 set LS 5000
Clicking dies-2 sets each -do- 20 sets 7200 144000
PVC last -do- 200 prs. 600 120000
Clicking pads, spray gun, and other misc. equipment -do- LS   48000
Testing equipments-thickness gauge, measuring scales etc. -do-   LS 30000
Workshop tables, racks etc. -do-   LS 100000
Office furniture and equipments -do-   LS 200000
Total 682000
(iv) Total Plant and Machinery, Tools and Equipments, Furniture and fixture and Other Fixed Assets (ii + iii) 2183400

(v) Pre-operative Expenses



Preparation of project report and consultancy 100000
Administrative expenses 20000
Travelling, Market development and tie-up 50000
Other formalities and expenses prior to production 50000
Total 220000

Total Fixed Capital Requirement



Land & Building 3950000
Plant & Machinery 1501400
Tools & other Equipments 682000
Other Pre-Operative Expensive 220000
Total 6353400

B. Working Capital (per month)

(i) Raw Materials (Including Packaging Materials) (per month)

Name of the Materials



Price (Rs.)

Total (Rs.)

Chrome tanned cow softy upper leather Black colour (1.2 mm) 10000 Sq.ft. 60 600000
Chrome tanned cow softy upper leather Fancy colour (1.2 mm) 13000 Sq.ft 70 910000
Lining leather (1.0 mm) 7500 Sq.ft 28 210000
Drill Cloth for lining 600 meters 40 24000
Cellulose Board 750 sheets 125 93750
PVC soles Children school Shoes 8000 pairs 34 272000
PVC/ TPR soles for fancy shoes 8000 pairs 50 400000
Adhesive- rubber Solution 150 liters 120 18000
Adhesive- polyurethane 300 liters 180 54000
Adhesive- polychloroprene 150 liters 120 18000
Eyelet, lace and thread and other grindery 10 Per pair 15000 150000
Packing materials 8 Per pair 15000 120000
Total 2869750

(ii) Salary and Wages (per month)

Personnel For Workshop

Name of the Post


Salary (Rs.)

Total (Rs.)

Production manager (Leather technologist) 1 20000 20000
Designer 2 9000 18000
Supervisors-Technical 2 7000 14000
Skilled worker/ Machine operator 30 6000 180000
Semi skilled worker 20 4500 90000
Unskilled worker 8 3000 24000
Electrician and mechanic 2 5000 10000
Total 356000

Personnel For Administration

Name of the Post


Salary (Rs.)

Total (Rs.)

Accountant cum Cashier 1 8000 8000
Store Keeper 1 4500 4500
Watchman 2 3000 6000
Total 18500
Total Salary and Wages per month (i+ii)   374500
Add 20% perquisites  74900
Total 449400

(iii) Utilities (per month)


Amount (Rs.)

Electricity 15000
Total 15000

(iv) Other Contingent Expenses (per month)


Amount (Rs.)

Repair and maintenance 7500
Other consumable 10000
Insurance 6000
Travelling Expenses 10000
Telephone, fax and other postal expenses 10000
Stationery and printing 10000
Other miscellaneous expenses 20000
Total 73500
(v) Total Recurring Expenses (per month) (i+ii+iii+iv) 3407650

vi) Total Working Capital

Requirement for 1 and half Months Rs. 1.5 x 3407650 5111475

C. Total Capital Investment

Fixed Capital 6353400
Working capital 5111475
Total 11464875

Financial Aspects

Cost of Production (per annum)

Amount (Rs.)

Recurring Expenses 40891800
Depreciation on Machinery @10% 150140
Depreciation on Building@ 5 % 197500
Depreciation on Tools and Equip.@ 25% 170500
Depreciation on Furniture and Fixture @20% 20,000
Interest on Total capital investment @ 12% 1634040
Total 43063980
or Say 43063980

Expected Sales (per annum)

Children school shoes 80,000 pairs @ 250 19200000
Children fancy shoes 100,000 pairs @ 300 30000000
Total 49200000

Net profit (per year)


Expected Sales – Cost of Production

  49200000- 43063980
  = 6136020

Net Profit Ratio


Net Profit (per year) x 100

Turn-over (per year)


Rate of Return on Total Investment


Net Profit (per year) x 100

Total Investment


Break-even Point

Fixed Cost


Amount (Rs.)

Depreciation on building(@5%) 197500
Depreciation on machinery(10%) 158310
Depreciation on office equipment(20%) 20,000
Insurance 48,000
Interest on total capital(12%) 1634040
40% of salary 2157120
40% of other contingencies and utilities 223200
Total Fixed Cost 4,285,670
B.E.P Fixed cost x 100
Fixed cost + Profit

Addresses of Manufacturers and Suppliers of Machines

  • NSIC Technical Service Centre
    Sector B-24, Guindy Indl. Estate,
    Ekkaduthangal, Chennai-32
  • M/s. Atlanta Trading (P) Ltd.,
    ATUR House, Worli Naka,
    Mumbai - 18
  • M/s. Twin Star Engineering,
    No. 98, Pammal Main Road,
    Pammal, Chennai- 75
  • M/s. S.P. Engineering Works,
    Dayal Bagh Road, New Agra-5
  • M/s. Raj Machine Home,
    Opp. New Jyoti building,
    35/44 Karabala Road,

Raw Material Suppliers

  • M/s. Alpha Global,
    445/1, 6th Cross, 7th Block,
    Jayanagar KPM Road,
    Bangalore - 560 082
  • M/s. Amjad Finished leather Co.
    54 maddox street, Choolai,
    Chennai - 112
  • M/s. Arkay Leathers,
    No.-3,Third Floor,
    Crown Court, 34,
    Chathedral Road,
    Chennai- 86
  • M/s. Mow Chung Tannery Pvt. Ltd.
    47, South Tangra Road,
    Kolkata- 46.
  • M/s. Anka India Ltd.
    Vand PO – Kherki Daula,
    Gurgaon, - 122001(Haryana)
    (for soles)
  • M/s. Chem Crown India Ltd.
    Real Chambers, Maddox,
    3rd Floor, Vepery,
    Chennai- 600 012
  • M/s. Enkay HWS India Ltd.
    B-3 S.M.A. Co-op Ind. Estate,
    G.T. Karnal Road,
    Delhi - 110 033
    (for soles)
  • M/s. Flexolle Raman Ltd.,
    Mysore – Ooty Road,
    Thandavapura – 571 325
    (for insole)
  • M/s. Pidilite Industries Ltd,
    J.B.Marg, Nariman Point,
    (for adhesive)
  • M/s. APL Poly Fab Pvt. Ltd.,
    48 C, Matheswar Tala Road,
    Kolkata- 46
    (for lining)
  • M/s.M/s. Coats India Ltd,
    144, M.G. Marg,
    (for stitching thread)
  • M/s. Asia International,
    1523, Qasimjan Street,
    Lal Kuan, New Delhi
    (for fasteners)

For further information please contact

Information Manager
TIMEIS Project