Court Shoe

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Quality and Standards
  • Footwear IS 2051
  • Chromed Leather IS 578
  • Leather Shoe IS 11543
  • Glazed Kid IS 576
  • Lining Leather IS 3840
Production Capacity Quantity : 1,80,000 Pairs (per annum) Value : Rs. 2,40,00,000
Uploaded on March 2007


Footwear is the most common and utility-wise important end product of the Leather industry. India, which is one of the largest leather producing countries, is fast getting into shoe trade. Most European Business Executives are formal in their dress, unlike the somewhat casual dress code in the business sector of certain other countries. The location also influences the degree to which formal dress is required, for instance whether it is in the capital or the provinces and, accordingly, the style of footwear has changed. Court Shoe is used mainly in the developed countries and varies the heel height and design.

Market Potential

The manufacture of footwear is one of the traditional industries of India and Leather Footwear has meanwhile became an important product for the Indian and Export markets. Footwear serves to protect the human foot from all kinds of injury and is conveniently classified into open footwear and closed footwear.

The past five years have been a period of rapid growth for the Indian Shoe Industry. Many structural changes have occurred over the years in the footwear industry. More than 90% of footwear is produced by small scale and cottage units, which also accounts for 65% of all exports of leather footwear. 90% to 95% of the total output of the small and cottage industry are produced by manual or semi-mechanised methods.

According to the estimate, the degree of capacity utilisation in the footwear sector was around 60 to 65%. No official statistics exists for production capacities and actual production in the small scale units. However, approximately there are around 2,00,000 units existing in India producing around 400 million pairs of footwear.

Footwear exports have been encouraging during the past few years. The major importers of Indian footwear are the U.S.A, The Federal Republic of Germany, U.K., France and the other EC countries. Many other countries have also expressed interest in purchasing Indian Footwear because of the high quality of the calf and kid leathers. The Indian products also have a price advantage and lower wage costs that means the manufacturing costs are not too high. Other production factors, such as environmental pollution problems in the above countries may lead to greater imports of shoe from developing countries such as India.

Basis and Presumptions

Working hours/shift 8hours
No. of shift/day 3
Working days/year 300
Total no. of working hours 7200
Working efficiency 75%
Time period for achieving max. cap. Utilisation 3rd year from the date on which production will be started
Labour charges As per the existing rates in the region
Margin Money 30% of capital investment
Rate of interest on fixed and working capital 12%
Land & Building Own
Water Plant Own(tube well or Borwell)
Rate of Electricity Rs 4 per unit
Pay Back Period 5 years

Implementation Schedule

The implementation schedule is anticipated to be about one year which is necessary considering the time required for preparation of project report and appraisal, registration, obtaining loan, acquiring land, building, plant and machinery, organising working infrastructure, establishing contacts with buyers and market agencies etc.

Technical Aspects

Process of Manufacture

Presently, there is a tremendous change in the manufacturing of shoes. Various new processes have come up like cemented direct moulding, direct injecting etc. Besides this, unit soles are readily available in the market in different designs and standards with latest shapes for production.

Quality Control and Standards

Following BIS specifications for manufacturing shoes are

Footwear IS 2051
Chromed Leather IS 578
Leather Shoe IS 11543
Glazed Kid IS 576
Lining Leather IS 3840

Production Capacity

It is proposed to manufacture 1,80,000 pairs of Court Shoes @ Rs. 500 per pair, total value Rs. 1,30,00,000

Motive Power 5 k.Vs

Pollution Control

In particular, a Leather Shoe unit does not create any environmental hazards, the performance of Production System is through waste minimisation/utilities. It is observed that the waste emanating from 70% of the unit is utilised by the small leather goods (Tiny Sector) industries i.e. Chappal Manufacturing, Small Coin Purses manufacturing and Key Chain Purse Manufacturing units.

Energy Conservation

The Energy is spent in the factory in the form of electricity and fuel. The workers should be properly trained to operate the machines as and when required. They should be cautioned to yield maximum units during the machine operation and should not allow the machine to run by motive power unnecessarily. The electrical lines should be properly made and checked at
regular intervals.

Financial Aspects

Fixed Capital

Land and Building
Land 700 sq. mtr @ Rs 3500/- per 2450000
Office building, Lab. Store @ 7000/mtr. 700000
Floor area construction ,factory shed, Boundary wall etc. 400 @ Rs 5000/per sqmt 2000000
Total 5150000

Machinery and Equipments


Imp./ Ind.

Qty. Nos.

Rate (Rs.)

Value (Rs.)

Single Needle Flat Bed Sewing Machine Imp 8 25000 200000
Post Bed Sewing Machine Single Needle Imp 3 50000 150000
Single Needle Cylinder Bed Sewing Machine Imp 1 80000 80000
Hydraulic Sewing Arm Upper Clicking Imp 1 300000 300000
Upper Leather Skiving M/c. Imp 1 50000 50000
Zig-Zag Sewing Machine Imp 1 48000 48000
4 Station Stuck on Press with Compressor Ind 1 35000 35000
Finishing and Polishing Machine Ind 1 15,000 15,000
Strap Cutting Machine Ind 1 20000 20000
Stamping Machine(Power) Imp 1 100000 100000
Tools and Equipment   LS 50000 50000
PVC Shoe Last   400 pairs 600 240000
Office cum Workshop Furniture   LS   200000
Heat Activator Ind 1 1500 15000
Excise, sales tax & erection and installation charges 40% of total of 1 to 14       601200
Water systemt (including tube well & over head tank)       200000
Total 2304200

Total Fixed Capital


Land and Building 5150000
Plant and Machinery 2304200
Total 7454200

B. Working Capital (per month)

(i) Raw Material (per month)




Rate/unit (Rs.)

Value (Rs.)

Upper Leather, Goat, Softy and Auliva etc. 270000 Dcu 5.50 1485000
Lining Leather Softy Fabric 60000 SGF 26 1560000
Lining Cloth 1500 mtr 25 37500
Lusole, Toepuff, Stiffness Adhesives etc. 15000 pairs 33 495000
P.U. Adhesive and Grinderies, Decorative Emblishments 15000   55 825000
Unit Soles P.U., PVC, TPR 15000   50 750000
Packing Material 10000   14 140000
Total 5292500

(ii) Staff and Labour (per month)



Salary Rs.

Total (Rs.)

Manager 2 20000 40000
Designer-cum- Production Manager 2 10000 20000
Supervisor 6 8000 48000
Accountant-cum-Clerk 2 7000 14000
Skilled Worker 30 7000 210000
Semi Skilled Worker 15 5000 75000
Peon/Watchman 2 3000 6000
Sweeper 2 2500 5000
Total 418000
20% Perquisites on Total Salary     83600
Total 501600

(iii) Utilities (per month)


Amount (Rs.)

Power and Water 50000

(iv) Other Contingent Expenses (per month)


Amount (Rs.)

Postage and Stationery 12000
Consumable Stores 30000
Telephone 10000
Packing and Transportation Charges 20000
Advertisement and Publicity 20000
Insurance 7000
Misc. Expenses 15000
Total 114000

(v) Total Recurring Expenditure (per month)


Amount (Rs.)

Staff and labour 501600
Raw Material 5292500
Utilities 50000
Other Contingent Expenses 114000
Total 5958100

(vi) Total Working Capital (for 1 ½ Month )

Rs. 5958100 x 1.5 = 8937150

C. Total Capital Investment

Fixed Cost 7454200
Working Capital for 1.5 months 8937150
Total 16391350

Financial Analysis

Cost of Production (per annum)

Amount (Rs.)

Total Recurring Expenditure 71497200
Depreciation on Machinery @ 10% 99800
Depreciation on tool and Equipments @ 20% 10000
Depreciation on furniture @ 20% 40000
Depreciation on Building @ 5% 257500
Interest on total Capital Investment @ 12% 1966962
Total 73871462

Turnover (per year)



Rate Rs.

Value (Rs.)

By sales of Court Shoes pair 180000 500 90000000

Net Profit (per annum)

  Annual Turnover – Cost of Production
  90000000 – 73871462

Net Profit Ratio


Net Profit x 100

Turnover per annum


Rate of Return


Net Profit x 100

Total Capital Investment


Break-even Point

Fixed Cost (per annum)


Amount (Rs.)

Depreciation on machinery, tools and furniture 109800
Interest on Total Investment 1966962
Depreciation on Building 257500
40% of Salary 2407680
40% of Other Contingents and Utilities 513600
Insurance 84000
Total 5339542
B.E.P Fixed Cost x 100
Fixed Cost + Profit

Addresses of Machinery and Equipment Suppliers

  • M/s. Prototype Dev. Training Centre
    B/24. Guindy Estate,
    Chennai –9
  • M/s. Cochin Leathers Pvt. Ltd.
    Industrial Dev. Area,
    Muppathadam P.O.,
    Cochin - 683 102
  • M/s. Solar
    Atur House,
    Worli Naka,
    Mumbai-400 018
  • M/s. Chandra Chemical Ent. Ltd.
    5, Naval Hospital Road,
    Ist Floor, Periamet,
    Chennai -3
  • M/s. Valliappa Leather Corporation
    3/5, Narayana Chetty Street,
    Chennai -3
  • M/s. Omega Polymicrons (P) Ltd.
    Meerut Road, Mawana - 250401
    Distt. Meerut (U.P.)

For further information please contact

Information Manager
TIMEIS Project