Leather Sandal with P.U. Sole

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Product Code 2913
Quality and Standards There are no BIS standards for all raw materials
and grinderies. However, IS 6493:1971 may
Production Capacity Qty. 72000 pairs (per annum)
Value : Rs. 27360000
Uploaded on March 2007


Leather Sandals and Chappals in different designs and forms are made of leather which is a natural protective material for the foot. The purpose of using sandals is mainly to protect the feet from injury, thorn, insects, heat and cold. With the rapid increase of population and civilization more and more people are using footwear. It may be either chappal or sandal or shoe.

The term footwear covers mainly

  • Chappal
  • Sandal
  • Shoe and
  • Boot

The project profile deals with sandals with top made of upper leather and the bottom made of PU sole, which are available in the market readily. PU sole, being more durable, will eliminate a number of operations.

Market Potential

Footwear in India is manufactured in cottage, small and large units. About 90% of the total output of footwear is made by cottage and small-scale sector.

Sandals are in more demand from the countries, which have moderate climate or hot climate. Sandals will be more useful than the chappal in populous cities like Kolkata, Mumbai, Delhi, Chennai, Bangalore and many other cities/towns because due to buckle/strap sandals will not come out of feet as the chappal does in a crowded bus or train. Hence from the utility point of view the sandals have also very good market in our country as well as abroad where climate is not cold.

Basis and Presumptions

  • Efficiency and working Hours: 240 pairs of Gents sandal with leather upper and P.U. sole per day on double shift basis, where single shift is of 8 hours and 25 working days in a month. Or, 72,000 pairs of sandal/year.
  • Time period for achieving full/envisaged capacity utilisation: The project may take 12 months to achieve the full capacity utilisation.
  • Labour wages: On monthly basis including perquisites.(at prevailing rates of market)
  • Interest rate: Assumed at 12% per year on capital investment.
  • Margin money: The entrepreneurs share is 20-25% of the capital.
  • Operative period of the project: 10-15 years
  • Land and Construction Cost: Own
  • Moratorium Period: 3-5 years.

Implementation Schedule


Period (in month)

Registration and other formalities 1
Allotment of shed 2
Machinery procurement and installation 3
Recruitment of personnel 1
Arrangement of electric supply 3
Trial production 1
Commercial production 1
Total 12

Technical Aspects

Process of Manufacture

The upper components i.e. leather straps, split lining leather for outside straps and inside straps are cut. The straps are skived wherever necessary and pasted with latex or rubber solution. The front straps, which are having selflining, are folded and stitched. The outside and inside straps are pasted and nicked at the deep carved portion to facilitate folding. The split linings are pasted and attached with the outside and inside straps. The buckle holder pieces are also cut and buckles are fixed. The buckle holder piece, which is carrying the buckle, is fixed on the outside by rivets. The ends of the straps are fitted between outside strap and lining, and inside strap and lining. The upper is secured by stitching.

The bottom surface of synthetic insoles (PVC) is buffed lightly. These are temporarily fixed under the bottom of the sandal last. The uppers are fitted on the last and lasted under the insole by pasting. Adhesive is applied under the buffed surface of the PVC insole and lasted upper. Mock welts (4 to 5 mm width) are attached on the PU soles all round the edges.

The top surface of PU soles treated by primer and then halogenated by chemical. Slight heat treatment is given on PU. The top surface of PVC insoles are buffed lightly and adhesive (SR-NL) is applied and slight heat treatment is given. After proper drying, both the surfaces are stuck together by cementing press. The upper complete with sole is removed from the last. The sandals are cleaned, polished and packed.

Quality Control and Standards

Quality and specifications are as per buyer's specification and for export, certain quality and specifications are maintained, but for local market, no strict quality standards are followed.

IS 578:1971 and IS 3890:1966 can be seen for chrome tanned upper leather and lining leather respectively.

The upper leather should be uniform in thickness and colour and should have water fastness property. Very good quality adhesive and chemicals are to be applied for fixing sole and insole. Proper care should be taken while doing final inspection before packing.

Production Capacity

Quantity 72000 pairs
Value Rs. 27360000
Motive Power 3 HP.

Pollution Control

There is hardly any pollution except a little noise pollution on account of running of the machine.

Energy Conservation

Normally it is not required.

Financial Aspects

Fixed Capital

Land and Building
Land 300 sq. mtr. @ Rs. 5000 per sq. mtr including registration 1500000
Total built-up area 200 sq. mtrs. as follows
Administrative office,factory hed 200 sq. mtrs. construction cost @ Rs. 6000 per sq. m 1200000
Water System (including Bore Well + over head tank etc) 200000
Electricity backup(generator and others equipment) 100000
Total civil cost= cost of land + building 3000000

Machinery and Equipments


Imp./ Ind.



Amount (Rs.)

Flat bed single-needle stitching machine, power operated with 0.33 H.P. Motor Ind. 3 18000 54000
Strap cutting machine, power operated with 0.5 HP Motor Ind. 1 35000 35000
Upper leather skiving machine complete with table, stand with 0.5 HP motor. Ind. 1 100000 100000
Hand operated strap folding machine Ind. 1 12000 12000
Buffing and roughening machine with 0.5 HP motor Ind. 1 20000 20000
Polishing Machine with 0.25 HP motor Ind. 1 10000 10000
Sole cementing press-4 bed operated with Air compressor 1 HP motor Ind. 1 40000 40000
Trademark embossing machine hand operated Ind. 1 15000 15000
Wooden sandal last Ind. 100 pairs 250 25000
Tools, equipment etc. Ind. L.S.   30000
Office equipment, furniture etc. Ind. L.S.   100000
Taxes ,Electrification and Installation charges @ 40% Ind. L.S.   124400
Total 565400
Pre-operative Expenses 50000
Total 3615400

B. Working Capital (per month)

(i) Personnel (per month)



Rate (Rs.)

Total (Rs.)

Manager 1 20000 20000
Designer-cum-Supervisor 1 10000 10000
Accountant-cum-Store Keeper 1 7000 7000
Clerk-Cum-Typist 1 5000 5000
Clickers 4 6000 24000
Upper assembly and preparation 4 6000 24000
Semi-Skilled Workers for bottoming 4 4500 18000
Machine Operators 14 6000 84000
Unskilled Workers 4 4000 16000
Watchman 1 3000 3000
Sweeper 1 3000 3000
Total 214000
Add. 22% perquisites 47080
Total 261080

(ii) Raw Materials (6000 pairs) (per month)


Ind./ Imp.



Rate (Rs.)

Value (Rs.)

Chrome upper leather lower quality Ind. 6000 sq. ft. 55 330000
Split lining leather (approx. 1/2 sq. ft. to be used for buckle strap and side strap only) Ind. 3000 sq. ft. 30 90000
PVC readymade insole Ind. 6000 pairs 38 228000
P.U. Sole Ind. 6000 pairs 140 840000
Grinderies like Mock welt, Adhesive, Thread, Buckle etc. Ind. L.S. Per pair 20 120000
Packing Ind. L.S. Per pair 8 48000
Total 1656000

(iii) Utilities (per month)


Amount (Rs.)

Power and fuel 20000
Total 20000

(iv) Other Contingent Expenses (per month)


Amount (Rs.)

Postage and Stationery 10000
Telephone 10000
Consumable stores 15000
Repair and Maintenance 10500
Transport charges 20000
Advertisement and publicity 100000
Insurance 8000
Sales Expenses 10000
Misc. Expenses 20000
Total 203500

(v) Total Recurring Expenditure (per month)


Amount (Rs.)

Salary and Wages 261080
Raw Materials 1656000
Utilities 20000
Other Contingent Expenses 203500
Total 2140580

vi) Working Capital for 1.5 months

( 2140580 x 1.5) 3210870

C. Total Capital Investment

Total Fixed Capital 3615400
Working capital for 1.5 months 3210870
Total 6826270

Financial Analysis

Cost of Production (per annum)

Amount (Rs.)

Total recurring cost 25686960
Depreciation on Building @ 5% 150000
Depreciation on machinery @ 10% 31100
Depreciation on office furniture and equipment @ 20% on Rs. 50,000 20000
Depreciation on tools and equipment @ 25% of Rs. 35,000 7500
Interest on Total Capital Investment @ 12% 819152
Total 26714712

Turnover (per annum)




Price (Rs.)

Gents sandal with P.U. Sole 72,000 380 27360000
Total 27360000

Net Profit (per year) (before Income Tax)

  Turnover - Cost of Production
  27360000- 26714712

Net Profit Ratio


Net Profit per year x 100

Turnover per year

  645288 x 100

Rate of Return on Total Investment


Net Profit per year x 100

Total Investment

  645288 x 100

Break-even Point

Fixed Cost (per annum)


Amount (Rs.)

Depreciation on Building @ 5% 150000
Depreciation on machinery @ 10% 31100
Depreciation on office furniture and equipment @ 20% on Rs. 50,000 20000
Depreciation on tools and equipment @ 25% of Rs. 35,000 7500
Interest on Total Capital Investment @ 12% 819152
40% of salary and wages 1253184
40% of utilities 938400
Insurance 96000
Total 3315336
B.E.P Fixed cost x 100
Fixed cost + Profit
  3315336 x 100
  3315336 + 645288

Addresses of Machinery and Equipment Suppliers

  • M/s. Benson Industries
    96, Sri Aurobindo Road,
  • M/s. Bengal Machinery Co. (P) Ltd.
    9-A, New Tangra Road,
  • M/s. PTDC (Under NSIC),
    Industrial Estate,
    P. O. Ekkaduthangal,
    Chennai-600 097.
  • M/s. Indian Leather Machines
    6, Sangita Indl. Estate.,
    Pokkram Road, No. 1, Upwan,
    Thane, Mumbai - 400 606.

  • Sandal Last

  • M/s. Alison Singh and Co.
    174, Baluganj,
  • M/s. Sanghavi Shoe accessories Pvt. Ltd.
    11, Harikripa, 10th Road,
    Mumbai-400 071.
  • M/s. Footform,
    30, Banerjee Para Road,
    Kolkata-700 061.

Raw Material Suppliers

  • M/s. Modern Leather Stores
    1, Bidhan Sarani,
    (Misc. items)
  • M/s. Kohinoor Leather Co.
    P-14, Bentinck Street,
    (Misc. items)
  • M/s. Valliappa Leather Corporation
    3/5 and 6, Narayana Chetty Street,
    Chennai-600 003
    (Misc. items)
  • M/s. Bengal Tanning Company
    11/2, Harshi Street,
    (Leather only)
  • M/s. Super Tannery (India) Ltd.
    Jajmau, Kanpur.
  • M/s. Omega Polymicrons Pvt. Ltd.
    Meerut Road,
    Mawana-250 401.
  • M/s. Sethu Exports Agencies
    114, Vepery High Road,
    Chennai - 600 003.
  • M/s. Saxon India
    59/2, Cockburn Road,
    Bangalore-560 051.
  • M/s. Chemet,
    Taj Building, 1st Floor,
    P. B. No. 195,
    Dr. D. N. Road, Fort,
    Mumbai-400 001.
  • M/s. Peoples Enterprises Pvt. Ltd.
    16/1, G. C. Avenue,
    Kolkata-700 013.
  • M/s. Pidilite Industries Ltd.
    Ramkrishna Mandir Road,
    Andheri (E), P. B. No. 17401,
  • M/s. Nanavati Engineering Co. Pvt. Ltd.
    A-195, 4th Cross Road,
    Peanya Indl. Estate,
    Bangalore-560 058.
  • M/s. Atlas Trading Corporation
    7627, (P) Daroga Street,
    Resham House, Sadar Bazar,
    New Delhi-110 006.
  • M/s. Star Processors Ltd.
    3, Chingrighata Lane,
    Kolkata-700 015.
  • M/s. Bharani agencies
    126, Thambuchetty Street,
    3rd Floor,
    Chennai-600 001.

For further information please contact

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