Portfolio Bag

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Product Code 293999007/293101000
Quality and Standards As Per Buyer's Specification
Production Capacity Qty. 36000 Pieces (per annum)
Value: Rs. 22080000
Uploaded on April 2007


Portfolio bags made of leather are used generally by office goers as well as by business people to carry papers, pen, pencils, tiffin box and personal belongings etc. These types of bags are also widely used by medical representatives because they need to keep a large number of samples of medicines.

Portfolio bags are made of vegetable tanned leather/semi-chrome leather. All the machines and raw materials used for its manufacture are easily available from indigenous sources and not much technology is involved in manufacturing.

Market Potential

The scope of manufacturing this item is increasing due to the growing demand of Portfolio bags in cities from the increasing number of consumers. Hence, the market of portfolio bags required by the office-goers and travellers is very bright. Portfolio bags industry is located mainly in Kolkata, Mumbai, Delhi, Chennai, Kanpur and Bangalore. The item has demand not only in India but also abroad. India is exporting portfolio bags and similar types of items to Bangladesh, Nepal, Middle East, Germany, Canada etc.

Basis and Presumptions

  • The production is based on double shift basis of 16 hours per day and 25 working days in a month i.e. 300 working days in a year.
  • The unit is expected at 60% efficiency in the first year and 90% efficiency will be achieved within 3-4 years.
  • Time period for achieving envisaged capacity utilization is 3 months after trial run.
  • Interest rate is calculated @ 12% per annum on average.
  • Payback period is 4-5 years.
  • Labour will be engaged on monthly basis, which is more than the minimum wage declared by the State Govts.

Considering the product and usage, the project can work for more than 20 years.
Land & Building Own

Implementation Schedule


Period (in month)

Registration and other formalities 1
Acquisition of land and shed 3
Arrangement of electricity and water supply 2
Machinery purchasing and installation 4
Trial Production 1
Total 11

Technical Aspects

Process of Manufacture

These articles are manufactured by different methods. However, the main operations are

  • Pattern cutting
  • Economical layout of pattern
  • Clicking of components
  • Skiving
  • Colouring of edges
  • Assembling
  • Stitching
  • Fitting
  • Cleaning and finishing.

The components are cut as per the patterns of various sizes and designs, from the leather by hand after duly checking of the leather keeping in view holes and flaying cuts. The components are then stitched after skiving, wherever necessary. After completion of stitching, handle is fixed and stitched on the central portion of the bag. Zips, buckles, rivets and other fittings are attached. The bags are cleaned, polished, finished and packed.

Quality Control and Standards

Specific standards are to be followed as mutually agreed upon between the manufacturers and the buyers. In case of export, rigid quality control is to be maintained. The quality of product depends upon the purchase of right raw material, grinderies and strict supervision. Final inspection is a must before packing.

Production Capacity




Value (Rs.)

Portfolio Bag (1st Quality) 16000 Pieces 680 10880000
Portfolio Bag (2nd Quality) 20000 Pieces 560 11200000
Total 22080000
Motive Power 5 HP.

Pollution Control

These types of leather goods industries do not pollute. Hence, no arrangement is necessary to check the pollution.

Energy Conservation

Energy conservation in this type of unit is on the lower side since low power motors are used in the production line. The staff of the unit should be made aware of the need to conserve energy by switching off the energy sources when not required.

Financial Aspects

Fixed Capital

Land and Building
Land 300 sq. mtr @ Rs 5000/- per sq.mtr 1500000
Office building, Lab. Store 100sq.mtr. @ 7000/mtr. 700000
Floor area construction ,factory shed, Boundary wall etc. 200 sq.mtr. @ Rs 5000/per sqmt 1000000
Total 3200000

Machinery and Equipments


Total H P

Imp./ Ind.



Amount (Rs.)

Flat-bed Stitching machine 1 Ind. 2 15000 30000
Cylinder-bed stitching machine 0.5 Imp. 1 160000 160000
Skiving machine 0.5 Ind. 1 70000 70000
Splitting machine 1 Ind. 1 280000 280000
Punching machine 0.5 Ind. 1 30000 30000
Roughing, Buffing and Polishing machine 0.5 Ind. 1 30000 30000
Cutting table for components     2 10000 20000
Tools and Equipments     L.S.   80000
Office equipment and furniture,     L.S.   100000
Taxes , Erection Electrification and Installation charges @ 40%
upto Sl. No. 6
Total 1040000
Pre-operative Expenses 50000
Total Fixed Capital 4290000

B. Working Capital (per month)

(i) Personnel (per month)



Salary (Rs.)

Total (Rs.)

Manager 1 17000 17000
Supervisor 1 8000 8000
Cashier-cum-Accountant 1 6,000 6,000
Store keeper-cum-typist 1 4500 4500
Master Cutter 2 7000 14000
Machine Operators 10 6000 6000
Skilled Worker 4 6000 24000
Semi-skilled worker 4 4000 16000
Helper 4 3000 12000
Peon 1 3000 3000
Watchman 1 3000 3000
Sweeper 1 3000 3000
Total 170500
Add. 22% perquisites 37510
Total 208010

(ii) Raw Materials 3000 Nos. Portfolio Bag.





Value (Rs.)

V.T. finished leather/Semi-chrome leather-brown/coffee brown/black colour (1.2 mm to 1.5 mm) 3600 Kg. (Approx.) 250 900000
Grinderies, Lock, D-ring, Zip, rivets, adhesive, thread etc.) L.S.(3000 pieces)   100 300000
Packing L.S.   6 per piece 18000
Total   1218000

(iii) Utilities (per month)


Amount (Rs.)

Power requirement including lighting, fan etc. 15000
Total 15000

(iv) Other Contingent Expenses (per month)


Amount (Rs.)

Postage and Stationery 4000
Telephone 5000
Consumable stores 10000
Repair and Maintenance 10000
Transport charges 15000
Advertisement and publicity 20000
Insurance 6000
Sales & Marketing Expenses 20000
Misc. Expenses 10000
Total 100000

(v) Total Recurring Expenditure (per month)


Amount (Rs.)

Salary and Wages 208010
Raw Materials 1218000
Utilities 15000
Other contingent expenses 100000
Total 1541010

vi) Working Capital for 1.5 months

Rs. 1541010 X 1.5 = 2311515

C. Total Capital Investment

Total Fixed Capital 4290000
Working capital for 1.5 months 2311515
Total 6601515

Machinery Utilisation

Initially there will be 50% utilization of major machines which will increase thereafter @ 10% per year and consequently 90% utilization will be achieved in course of time, say, between 4-5 years.

Financial Analysis

Cost of Production (per annum)

Amount (Rs.)

Total recurring cost 18492120
Depreciation on machinery @ 10% including installation charges 86000
Depreciation on tools and equipment @ 25% 20000
Depreciation on office equipment and furniture @ 20% 20000
Depreciation on building @ 5% 160000
Interest on Total Capital Investment @ 12% 792182
Total 19570302

Turnover (per annum)


Qty. in No.


Price (Rs.)

Portfolio bags 1st quality 16000. 680 10880000
Portfolio bags 2nd quality 20000 560 11200000
Total 22080000

Net Profit (per year) (before Income Tax)

Turnover 22080000
Cost of Production 19570302
Total 2509698

Net Profit Ratio


Net Profit per year x 100

Turnover per year

  2509698 x 100

Rate of Return on Total Investment


Net Profit per year x 100

Total Investment

  2509698 x 100

Break-even Point

Fixed Cost


Amount (Rs.)

Depreciation on machinery @ 10% including installation charges 86000
Depreciation on tools and equipment @ 25% 20000
Depreciation on office equipment and furniture @ 20% 20000
Depreciation on building @ 5% 160000
Interest on Total Capital investment @ 12% 792182
Insurance 72000
40% of salary and wages 998448
40% of utilities 72000
40% of other Contingent expenses (Excluding insurance) 451200
Total 2671830
B.E.P Fixed cost x Profit
Fixed cost + Profit
  2671830 x 100
  2671830 + 2509698

Additional Information

With the same plant and machinery, it is possible to manufacture different types of leather goods namely industrial hand gloves, suitcases, briefcases, bags etc.

Addresses of Machinery and Equipment Suppliers

  • M/s. Benson Industries,
    96, Shri Aurobindo Road,
    Salkia, Howrah.
  • M/s. Bengal Machinery Co. (P) Ltd.
    9-A, New Tangra Road,
    Kolkata-700 046.
  • M/s. PTDC (Under NSIC)
    Industrial Estate,
  • M/s. Bharat Sales Agency
    Gesham Assurance House,
    3rd Floor, Sir P.M. Road,
  • M/s. Leather and Packaging
    Machinery Corpn.,
    1/23-B, Asaf Ali Road,
    New Delhi-110001.

Raw Material Suppliers

  • M/s. Modern Leather Stores
    1, Biddhan Sarani,
    Kolkata-700 012.
    (Misc. Items)
  • M/s. Vallappa Leather Corporation
    Narayana Chetty Street,
    (Misc. Items)
  • M/s. Asia Tannery (P) Ltd.
    1/A, Jazmau,
    (Leather only)
  • M/s. Zaz Tannery
    150, Feet Road,
    (Leather only)
  • M/s. Kazi Khilafat Hussain and Co.
    Lower Chitpur Road,
    Kolkata-700 001.
    (Leather only)
  • M/s. T.A. Abdul Wahid and Co.
    26, Vepery High Road,
    Chennai-600 003.
    (Leather only)

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com