PU Laminated Split Leather

Home » Technology » Project Profiles » Leather » PU Laminated Split Leather
Product Code N.A.
Quality and Standards As per customer's specification
Production Capacity 1,80,000 sides of PU Laminated Split Leather equivalent to approximately 2*1350000 sq.ft. (per annum)
Quantity Value: Rs.
Uploaded on April 2007


development in leather manufacturing field which has presently a great demand in the market. This leather has gained wide popularity in the fashion world and is used for making a wide variety of fancy leather products. Considering the low market price of the splits from cow and buffalo hides, its huge availability in the local market and a substantial market potential, the project on manufacturing the PU laminated Split leather can be said to have a very bright prospect.

Market Potential

There exists a very good market potential for the PU laminated Split Leather both in the internal market as well as in the overseas markets. The use of this leather in making fashionable leather products is increasing day by day. There is an enormous export potential in the international market for this leather specially in the developed countries like USA, Canada, Great Britain, Germany, Italy, Australia, Japan and many other countries. Although the exact demand figure of export for this leather is not available now, there is a great hope for an expanding market for this kind of leather throughout the globe. India has got very rich resources in terms of availability of skilled manpower, advanced technical know-how and highest raw-material resources i.e. raw-hides and skins. With this back ground India is now among the top four global players in the leather trade, according to a recent FAO survey.

Basis and Presumptions

  • The unit would work on double shift basis of 16 hours for 25 days in a month and 600 days per annum.
  • Full capacity utilization is envisaged to be achieved within a period of one year.
  • Wages and salary is considered on the basis of prevailing local rates.
  • Rate of interest on investment 12%
  • Margin money 25%
  • Pay-back period of the product: About 3 years.

Implementation Schedule

The implementation schedule is considered to be about one year. This will be necessary taking into account the possible time required for obtaining NOC from the State Pollution Control Board, Provisional Registration, preparation of Project Report and its appraisal, permanent registration, taking loan/ finance from the bank, arrangement of land, building, machinery and equipments and other working infrastructure, establishing rapport with the trade, industries associations, trial run operation etc.

Technical Aspects

Process of Manufacturing

The splits taken out from the chrome tanned wet blue leathers (buffalo or cow) are used for making the PU Laminated Split leather. The process of manufacture of the PU Laminated Split leathers from the wet blue splits is given below:

At first, the wet blue split leathers are shaved in the shaving machine. The thickness is kept at 0.9 to 1.0 mm. Then the weight of the shaved splits are taken. This weight will be used for measuring the quantity of chemicals to be added in the subsequent processes.

Acidification: The wet blue splits are taken into the drum and acidified as follows

Acetic Acid 0.25%

The drum is run for 10-15 minutes.

Re-chroming: The re-chroming is done in the same bath and the process is run as follows

Basic chrome sulphate 3% – 40 mins
Add: Sodi-bi-carb 0.5% – 30 mins

The p H of the bath is adjusted to 4.0 and then the re-chromed wet blue splits are washed in running water for 10 min.

Neutralisation: The neutralisation of the wet blue splits is done as follows:

The drum is run for 40 minutes.

The neutralisation is checked with bromocresol green and the p H is adjusted at 5.0. The bath is then washed for 10 mins. And a new float of water is taken in the drum..

Retanning: This process is followed as given below

Cationic Fat liquor 2%
The drum is run for 30 mins.  
Add: Wattle extract 2%
Basyntan DI (Syntan) 1%
The drum is run for 30 mins.  

The retanned splits are washed in running water for 5 to 10 mins and then fresh water is taken into the drum.

Fat Liquoring: The fat-liquoring is done as follows

Water 200% ( 55º – 60ºC)
Sulphited vegetable oil 4 %
Synthetic Oil 2%
Preservative 0.25%

The oil emulsion is added to the drum which is run for about one hour. The exhaustion of the fat is checked. Then 0.5% Acetic Acid is added for fixing the fat after which the drum is run for 30 mins. more.

Add: Preservative - 0.25%

The drum is run for 20 mins.

The materials are then washed for 10 mins. in running water and then drained out and piled up in the horse overnight. Next day, the splits are sammed, set and dried. Then the dried split crusts are conditioned in the wet saw dust, toggled and staked in the staking machine. The staked splits are then trimmed off. Then buffing and snuffing of the splits are done on the flesh side and grain side respectively followed by dusting-off operation. The splits are now ready for finishing operation for making PU Laminated Split leather.

Finishing: At first a coat of latex solution or Polyurethane coat is applied on the surface of the split on the grain side and dried. A hair-cell print is applied on this surface by the hydraulic press. Then a polyurethane (PU) foil is put over the grain side surface of the split leather and plated by the hydraulic press under controlled temperature and pressure. The colour of the PU Laminated split leather varies which is to be selected according to the choice of the customers. PU laminated Split Leather thus produced is finished at the edges by trimming the excess PU film. Finally, the area of the leather is measured and the leathers are packed for despatch. For the purpose of this Project, an average area of 15 sq.ft. per side of the split leather has been considered.

Quality Control and Standards

As per customer's Specification.

Production Capacity

Quantity: 1,80,000 sides of PU Laminated Split leathers. One side represents half of the full cow or buffalo leather, with an average area of 15 Sq.ft, each side. So, Average total Production = 27,00,000 Sq.ft. (Approx.) (per annum)
Value: Rs.
Motive Power 100 HP.

Pollution Control

The pollution control is now-a-days one of the most important environmental issues and this has to be given utmost attention. This is because, the effluents coming out of the tanning processes are very toxic and they are likely to affect the flora and faunae of water, if disposed off elsewhere or in the river. Hence, for running such tanning unit, a No Objection Certificate (N.O.C.) has to be obtained from the Pollution Control Board. Also, suitable measures have to be taken for pollution control by making arrangement for treatment of effluents through common effluent treatment plant.

Energy Conservation

Conservation of energy is an important area to be looked into with utmost care. Lot of energy is spent in the tannery in the form of electricity and fuel. Hence, there exist a lot of scope for conservation of electricity and fuel which are among the limited resources required for running an industrial unit. In order to take appropriate measures towards energy conservation, the following steps need to be entak

  • Maintenance department will be properly geared up to ensure proper maintenance of all the machines and the electrical system.
  • Common drive system will be made to run the paddles, drums and other machines.
  • Workers are to be properly trained and made aware to save the energy.

Financial Aspects

Fixed Capital

(i) Land and Building
Total land area – 1000 sq.mtr.@Rs 5000 sq Mtr 5000000
Office, stores etc. 150 sq.mtr. @Rs 8000 sq.Mtr 1200000
Working shed 600 sq.mtr.@ Rs 7000 /Sq Mtr 4200000
Water System including bore well & overhead tank 200000
Total 10600000

(ii) Machinery and Equipments



Qty. (Nos.)

Value (Rs.)

Tanning Drums including 15 HP motor, starter etc. Size: 8'x6'. Ind. 2 500000
Single width shaving Machine (300mm Width) 5 HP motor. Ind. 2 150000
Reversible setting out machine, Size:5'-o” (1500 mm) with one Gear Box, Panel Box, Foot switch 5HP. 960 RPM. AC motor, One 15 HP 1440RPM AC Motor, starter etc. Ind. 1 210000
Slocomb staking Machine with 7.5 HP Motor, starter etc. Ind. 2 140000
Single width Buffing Machine with 5HP Motor and starter etc. Ind. 2 150000
One Dusting off M/c. Ind. 1 40000
Toggle chamber with 10 plates. Ind. 1 160000
Measuring Machine Ind. 1 260000
One generator set Ind. 1 300000
One spray booth Size: 9'x5' with top Booth cover, 2 nos. Of 18” exhaust fans and starter Ind. 1 60000
Hydraulic Press Ind. 1 1500000
Tools and equipments Ind. L.S. 60000
Electrification and installation @ 10% of the cost of Machinery     347000
Furniture and fixtures     200000
Total cost of Machinery and equipment     4077000
(iii) Pre-operative Expenses     50000
Total Fixed Capital (i+ii+iii)     14727000

B. Working Capital

(i) Personnel (per month)



Salary (Rs.)

Total (Rs.)

Tanner-cum-Manager 1 10000 10000
Supervisor 2 7000 14000
Accountant-cum-clerk 1 7000 7000
Watchman 1 5000 5000
Sweeper 1 6000 6000
Skilled Worker 24 7000 168000
Semi-skilled Worker 12 5000 60000
Helper 8 3000 24000
Total     300000
Perquisites @ 22%     66000
Total     366000

(ii) Raw Materials (Including Packing Materials) (per month)



Rate (Rs.)

Value (Rs.)

Wet Blue splits 15000 sides of splits equivalent to 225000 sq.ft. (approx.). 16 per s.ft. 3600000
Processing Chemicals L.S. 8 per sq.ft. 1800000
Total 5400000

(iii) Utilities (per month)


Amount (Rs.)

Power 50,000
Total 50000

(iv) Other Contingent Expenses (per month)


Amount (Rs.)

Postage and Stationery 10000
Transportation charges 20000
Telephone 8000
Consumable stores 15000
Advertisement and publicity 10000
Insurance 6000
Selling expenses 15000
Miscellaneous expenses 20000
Total 104000

(v) Working Capital (per month)


Amount (Rs.)

Personnel 366000
Raw-materials 5400000
Utilities 50000
Other contingent expenses 104000
Total 5920000

(vi) Working Capital (for 1 1/2 months)

Rs. 3 x 5920000 17760000

C. Total Capital Investment

Fixed Capital 10600000
Working capital for 2 months 17760000
Total 28360000

Machinery Utilisation

The machinery utilisation is anticipated to be 75% to 80% of the installed capacity. The effort should be made to maximum utilization of the machinery.

Financial Analysis

Cost of Production (per annum)

Amount (Rs.)

Total Recurring expenses 71040000
Depreciation on Building @ 5% 530000
Depreciation and equipment on Machinery @ 10% 412700
Interest on Capital Investment @ 12% 3403200
Total 75385900

Turnover (per year)


Qty. Sq.ft.

Rate (Rs.) / per sqft

Value (Rs.)

PU Laminated Split Leather 2700000 33 89100000

Net Profit (per year)


Turnover – cost of production

  = 13714100

Net Profit Ratio


Net Profit per year x 100


  13714100 x 100

Rate of Return


Net Profit per year x 100


  13714100 x 100

Break-even Point

Fixed Cost


Amount (Rs.)

Depreciation on building 530000
Depreciation on Machinery and Equipments @ 10 % 387700
Depreciation on furniture @ 20 % 50000
Interest on Capital 3403200
Insurance 72000
40% of salary/wages, utilities and other contingent expenses (Excluding Insurance) 2467200
Total 6910100
(ii) Net Profit (per annum) 13714100
B.E.P Fixed cost x 100
Fixed Cost+Profit
  6910100 x 100
  6910100 + 13714100

Addresses of Machinery and Equipment Suppliers

  • M/s. Prototype Development and
    Training Centre
    Sector – B/84,
    Guindy Industrial Estate,
    Chennai – 600 097.
  • M/s. The Bengal Machinery
    Co.(Pvt.) Ltd.
    9A, New Tangra Road,
    Kolkata – 700 046.
  • M/s. Annapurna Enterprises
    F-10/2, HIDC, Shiroli,
    Kolhapur – 416 122.
  • M/s. Bharat Udyog,
    A-49, MIDC Industrial Area,
    Shiroli, Kolhapur.
  • M/s. Atlanta Trading Co.(P) Ltd.
    Atur House, Worli Naka,
  • M/s. Solai Engg. Works
    48/42-C, North Usman Road,
    T. Nagar, Mehim,
    Mumbai – 400 017.

Raw Material Suppliers

  • M/s. Asia Tannery
    Kanpur (UP).
  • M/s. Zaz Tannery
  • M/s. T. Abdul Walhid and Company
    26, Vepery High Road,
    Chennai – 600 013.
  • M/s. Alam Tannery
    3, Gulam Jilani Khan Road,
    Kolkata – 700 039.
  • M/s. Indofil Chemical Ltd.
    Nirlon House,
    Dr. Annie Besant Road,
  • M/s. Leather Chemical and Industries Ltd.
    4-1, New Alipur,
  • M/s. BASF Chemicals (P) Ltd.
  • M/s. Allied Resin Chemicals Ltd.
    134/1, M.G. Road,
    Kolkata – 700 011.

For further information please contact

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