INDUSTRY PROFILE

Indian leather industry is the core strength of the Indian footwear industry. It is the

engine of growth for the entire Indian leather industry and India is the second largest global

producer of footwear after China.

Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks,

Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan

are manufactured under license in India. Besides, many global retail chains seeking quality

products at competitive prices are actively sourcing footwear from India.

While leather shoes and uppers are produced in medium to large-scale units, the

sandals and chappals are produced in the household and cottage sector. The industry is poised

for adopting the modern and state-of-the-art technology to suit the exacting international

requirements and standards. India produces more of gent’s footwear while the world’s major

production is in ladies footwear. In the case of chapels and sandals, use of non-leather

material is prevalent in the domestic market.

Leather footwear exported from India are dress shoes, casuals, moccasins, sport

shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear exported from India are

Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials.

With changing lifestyles and increasing affluence, domestic demand for footwear is

projected to grow at a faster rate than has been seen. There are already many new domestic

brands of footwear and many foreign brands such as Nike, Adidas, Puma, Reebok, Florsheim,

Rockport, etc. have also been able to enter the market.

The footwear sector has matured from the level of manual footwear manufacturing

methods to automated footwear manufacturing systems. Many units are equipped with In-

house Design Studios incorporating state-of-the-art CAD systems having 3D Shoe Design

packages that are intuitive and easy to use. Many Indian footwear factories have also

acquired the ISO 9000, ISO 14000 as well as the SA 8000 certifications. Excellent facilities

for Physical and Chemical testing exist with the laboratories having tie-ups with leading

international agencies like SATRA, UK and PFI, Germany.

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One of the major factors for success in niche international fashion markets is the

ability to cater them with the latest designs, and in accordance with the latest trends. India,

has gained international prominence in the area of Colours & Leather Texture forecasting

through its outstanding success in MODEUROP. Design and Retail information is regularly

made available to footwear manufacturers to help them suitably address the season's

requirement.

The Indian Footwear Industry is gearing up to leverage its strengths towards

maximizing benefits.

Strength of India in the footwear sector originates from its command on reliable

supply of resources in the form of raw hides and skins, quality finished leather, large installed

capacities for production of finished leather & footwear, large human capital with expertise

and technology base, skilled manpower and relatively low cost labor, proven strength to

produce footwear for global brand leaders and acquired technology competence, particularly

for mid and high priced footwear segments. Resource strength of India in the form of

materials and skilled manpower is a comparative advantage for the country.

The export targets from 2007-08 to 2010-11 as tabulated below reflects the fact that

footwear sector is the most significant segment of the Leather Industry in India.

The export targets from 2007-08 to 2010-11

(In Million US$)

Product 2006-07 2007-08 2008-09 2009-10 2010-11

Actual Export

Leather 688.05 726.85 785.00 847.80 915.63

Footwear 1212.25 1967.88 2597.60 3428.83 4526.05

Garments 308.98 358.53 372.87 387.78 403.30

Leather Goods 690.66 733.34 798.69 870.06 948.04

Saddlery & Harness 81.85 105.66 127.85 154.70 187.19

Total 2981.79 3892.26 4682.01 5689.17 6980.21

 

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India has emerged in recent years as a relatively sophisticated low to medium

cost supplier to world markets –The leather industry in India has been targeted

by the Central Government as an engine for economic growth. Progressively, the

Government has prodded and legislated a reluctant industry to modernise. India was noted as

a supplier of rawhides and skins semi processed leather and some shoes.

In the 1970’s, the Government initially banned the export of raw hides and skins,

followed this by limiting, then stopping the export of semi processed leather and

encouraging local tanneries to manufacture finished leather themselves. Despite

protestations from the industrialists, this has resulted in a marked improvement in

the shoe manufacturing industry. India is now a major supplier of leather footwear

to world markets and has the potential to rival China in the future (60% of Chinese

exports are synthetic shoes).

India is often referred to as the sleeping giant in footwear terms. It has an installed

capacity of 1,800 million pairs, second only to China. The bulk of production is

in men’s leather shoes and leather uppers for both men and ladies. It has over 100 fully

mechanised, modern shoe making plants, as good as anywhere in the world (including

Europe). It makes for some upmarket brands including Florsheim (US), Lloyd (Germany),

Clarks (UK), Marks and Spencer (UK).

India has had mixed fortunes in its recent export performance. In 2000, exports of

shoes were US$ 651 million, in 2001 these increased to 663 million but declined

in 2002 to 623 million dollars (See Statistics).

The main markets for Indian leather shoes are UK and USA, which between them

take about 55% of total exports.

India has not yet reached its full potential in terms of a world supplier. This is due

mainly to local cow leather that although plentiful, has a maximum thickness of 1.4

– 1.6mm, and the socio / political / infrastructure of the country. However, India

is an excellent supplier of leather uppers. Importation of uppers from India does not infringe

FTA with Europe or the USA.

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The potential is set to change albeit slowly, but with a population rivalling China for

size, there is no doubt the tussle for world domination in footwear supply is

between these two countries.

Few Interesting Facts:

- The Indian footwear retail market is expected to grow at a CAGR of over 20% for the

period spanning from 2008 to 2011.

- Footwear is expected to comprise about 60% of the total leather exports by 2011 from over

38% in 2006-07.

- Presently, the Indian footwear market is dominated by Men's footwear market that accounts

for nearly 58% of the total Indian footwear retail market.

- By products, the Indian footwear market is dominated by casual footwear market that makes

up for nearly two-third of the total footwear retail market.

- As footwear retailing in India remain focused on men's shoes, there exists a plethora of

opportunities in the exclusive ladies' and kids' footwear segment with no organized retailing

chain having a national presence in either of these categories.

- The Indian footwear market scores over other footwear markets as it gives benefits like low

cost of production, abundant raw material, and has huge consumption market.

- The footwear component industry also has enormous opportunity for growth to cater to

increasing production of footwear of various types, both for export and domestic market.

In a Nutshell:

There are nearly 4000 units engaged in manufacturing footwear in India. The industry

is dominated by small scale units with the total production of 55%. The total turnover of the

footwear industry including leather and non-leather footwear is estimated at Rs.8500-9500

crore (Euro 551.3-1723.1 Million) including Rs.1200-1400 crore (Euro 217.6-253.9 Million)

in the household segment.

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India's share in global leather footwear imports is around 1.4% Major Competitors in

the export market for leather footwear are China (14%), Spain (6%) and Italy (21%).

The footwear industry exist both in the traditional and modern sector. While the

traditional sector is spread throughout the country with pockets of concentration catering

largely to the domestic market, the modern sector is largely confined to select centres like

Chennai, Ambur, Ranipet, Agra, Kanpur and Delhi with most of their production for export.

Assembly line production is organized, and about 90% of the workforces in the

mechanized sector in South India consist of women. In fact, this sector has opened up plenty

of employment opportunities for women who have no previous experience. They are trained

to perform a particular function in the factory itself.

The Indian footwear retail market is expected to grow at a CAGR of over 20% for

the period spanning from 2008 to 2011. Footwear is expected to comprise about 60% of the

total leather exports by 2011 from over 38% in 2006-07. The major production centres are

Chennai, Ranipet, Ambur in Tamil Nadu, Agra and Delhi.

By products, the Indian footwear market is dominated by casual footwear market that

makes up for nearly two-third of the total footwear retail market. The Indian footwear market

scores over other footwear markets as it gives benefits like low cost of production, abundant

raw material, and has huge consumption market.

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COMPANY PROFILE

The Bliss Shoe manufacturing company established in the year 2007 specialized in

ladies, men’s and children’s shoes. They have three upper and three full Shoes convey. We

have the capacity to produce 1500 pairs per day. We have Italian technician, Who looks after

the quality of production they have specialized designer from Italy who visits to make

collections for every seasons.

ORGANIZATION STRUCTURE

DEPARTMENTS OF BLISS SHOE MANUFACTURERS

GENERAL MANAGER

Reporting to the Board of Directors, the general manager is responsible for enforcing

the policies and governance set forth by the Board in the operation of the business.

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GENERAL MANAGER

MARKETING MANAGER

CUSTOMER SERVICES

FINANCE DEPARTMENT

SALES DEPARTMENT

NETWORK ADMIN DEPARTMENT

PRODUCTION DEPARTMENT

TECHNOLOGY DEPARTMENT

R & DINTERNATIONAL SHIPPING TEAM

100% GURANTEE WARRANTY

CUSTOMER CARE

ACCOUNTING

PAYMENT

FACTORY

QA/QCD DEPARTMENT

QC PASS

The GM is directly authorized to implement policies to maximize revenues and minimize

operational costs, which generally translates into direct Profit & Loss responsibility.

MARKETING MANAGER

Researching and reporting on external opportunities

Understanding current and potential customers

Managing the customer journey (customer relationship management)

Developing the marketing strategy and plan Management of the marketing mix

Managing agencies

Measuring success

Managing budgets

Ensuring timely delivery

Writing copy

Approving images

Developing guidelines

Making customer focused decisions

SALES TEAM

The communications in a shoe

The communication in the Sale

Exercise of reflection

The oral and nonverbal communication

The oral communication

Key features of SHOES and oral communication

Standards for effective oral communication

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Rules to speak well in public

The non-verbal communication or body language

Finance Department

Accounts Department

Production & Shipping Department

R & D

Quality Control

Customer Services & Care Department

CURRENT ACTIVITIES

Currently they are exporting full shoes /uppers to various

European countries like Italy, Germany, France, Spain, Greece, Finland, United Kingdom etc.

They have one more factory named harming leather exports in that they are working with

various customers like humane/base London etc. They are specialized in making moccasins

and we also make cemented/other constructions as well.

NUMBER OF EMPLOYEES:

Supervisor 10

Production manager 04

Store in charge 24

Electrician 02

Workers 65

FUNCTIONS OF DEPARTMENTS

PRODUCTION DEPARTMENT

Production is the functional area responsible for turning inputs into finished outputs

through a series of production processes. The Production Manager is responsible for making

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sure that raw materials are provided and made into finished goods effectively. He or she must

make sure that work is carried out smoothly, and must supervise procedures for making work

more efficient and more enjoyable.

Five production sub-functions:

In a manufacturing company the production function may be split into five sub-

functions:

1. The production and planning department will set standards and targets for each section

of the production process. The quantity and quality of products coming off a production line

will be closely monitored.

2. The production department will be responsible for providing the materials, components

and equipment required to keep the production process running smoothly. A vital aspect of

this role is ensuring stocks arrive on time and to the right quality.

3. The stores department will be responsible for stocking all the necessary raw materials and

equipment required to service the manufacturing process.

4. The design and technical support department will be responsible for researching new

products or modifications to existing ones, estimating costs for producing in different

quantities and by using different methods.

5. The works department will be concerned with the manufacture of products. This will

include the maintenance of the production line and other necessary repairs. The works

department may also have responsibility for quality control and inspection

HUMAN RESOURCE DEPARTMENT

Human Resource Department is responsible for hiring members of staff this will

involve attracting employees, keeping them in their positions and ensuring that they perform

to expectation. It also clarifies and sets day to day goals for the organization. The human

aspect of resources within an organization contributes approximately eighty percent of the

organization’s value.

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Human Resource Department’s main objective is to bring out the best in their

employees and thus contribute to the success of the Company.

These roles come with certain positive and negative aspects. However, the negative

aspects can be minimized by improvements to their roles and functions.

FINANCE DEPARTMENT

The most part, the duties include all things related to budgeting. From appropriations

to control of expenditure and auditing duties, the finance department of any given company

has an array of duties.

A finance department basically has three main functions:

To provide strategic financial support regarding operational and general business

planning

To provide daily financial services functions

To meet and surpass the internal and external needs and financial reporting

requirements of the company at large

The finance department generally focuses on providing relevant information

necessary for upper level management. Such information is crucial in determining how a

company can make better financial decisions.

When it comes to reviewing a company’s overall practices and efforts, the finance

department is the key. Finance department will work cohesively with the company to build a

corporate environment that will be able to use the financial resources of the company in order

to ensure that the desired level of customer satisfaction is met.

The role of the finance department is very important to every business and according

to the financial position of the company the purchases and other development process will be

done.

The overall structure of the finance department, there are four key point people that

may come to mind:

The finance director

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Deputy finance director

Accountant

Finance specialist

Finance Director

The finance director is the head of the finance department. This individual will have

the supreme responsibility to ensure that all financial reports are accurate and up to date. The

finance director is tasked with giving a financial forecast for the company.

Deputy Finance Director

The deputy finance director is usually responsible for putting together the company’s

annual budget. In this position, the deputy finance director will be responsible for developing

an overall financial strategy. Sometimes referred to as the finance manager, the deputy

finance director is also responsible for managing the finance department’s team of

employees.

Accountant

The next position of importance in the department of finance is the accountant.  The

accountant is responsible for handling the accounts payable and accounts receivable.

Accountants also process payroll. Other duties include putting together financial-related

documents such as reports, auditing, and closing out accounting books.

Finance Specialist

The finance specialist basically handles capital investments. This position may also

require a bit of analytical work such as reconciliations, maintaining the general ledger and

keeping a close eye on the funds of the company.

MARKETING DEPARTMENT

The marketing departments act as a guide and lead the company's other departments

in developing, producing, fulfilling, and servicing products or services for their

customers.

Communication is vital.

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The marketing department has a better understanding of the market and customer

needs, but should not act independently of product development or customer service.

Marketing should be involved, and there should be a meeting of the minds, whenever

discussions are held regarding new product development or any customer-related

function of the company.

The goals and guidelines set by the marketing department should, by design, be in

line with the vision and mission of the company.

Marketing is a team effort. Individuals may have their own goals and priorities, but if

they don't also consider the goals and greater need of the company, they may hinder

efforts and make you’re carefully planned marketing efforts fail.

The marketing department studies the market and the customers, determines the best

way to reach those customers, and works with the rest of the company to help

determine the new product needs of the market and represent the company in a

consistent voice.

MARKETING OBJECTIVES

Customer Relationship Management.

Sales Forecasting.

Vendor Management.

Market Research.

Sales Analysis.

Price Analysis.

Sales Reporting.

Inventory Maintenance.

Shoe Making- How Shoes are made

Shoes and Shoe making Shoes are further divided into many categories such as

athletic shoes also known as sneakers, galoshes, high heels, Stiletto heels, kitten heels, lace-

up shoes, high-Tops, loafers, school shoes and many others. Shoemaking can be considered a

traditional handicraft profession. However, now it has been largely taken over by industrial

manufacture of footwear. A variety of materials is used for making shoes- leather fabrics,

rubber, fabrics, wood, jute fabrics and metal. More than 200 operations are required for

making a pair of shoes.

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However, with the development of modern machines, a pair of

shoes can be made in very less time as each step in its manufacturing is generally performed

by a separate footwear making machine.

Parts of a Shoe

A shoe consists of sole, insole, outsole, midsole, heel, and vamp (upper).

They are the basic parts of a shoe that are mostly included in all types off shoes. Other parts

of a shoe are lining, tongue, quarter, welt and backstay. These parts are included as per the

design of the shoes.

Clicking or Cutting Department

In this department, the top part of the shoe or the "upper" is made.

The clicking operative is given skins of leather, mostly cow leather but not restricted to this

type of leather. Using metal strip knives, the worker cuts out pieces of various shapes that

will take the form of "uppers". This operation needs a high level of skill as the expensive

leather has to be wasted at the minimum level possible. Leather may also have various

defects on the surface such as barbed wire scratches which needs to be avoided, so that they

are not used for the uppers.

Closing or Machining Department

Here the component pieces are sewn together by highly

skilled machinists so as to produce the completed upper. The work is divided in stages. In

early stages, the pieces are sewn together on the flat machine. In the later stages, when the

upper is no longer flat and has become three-dimensional, the machine called post machine is

used. The sewing surface of the machine is elevated on a post to enable the operative to sew

the three dimensional upper. Various edge treatments are also done onto the leather for giving

an attractive look to the finished upper. At this stage only, the eyelets are also inserted in

order to accommodate the laces in the finished shoes.

Lasting & Making Department

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The completed uppers are molded into a shape of foot with

the help of a "Last". Last is a plastic shape that simulates the foot shape. It is later removed

from the finished shoe to be used further in making other shoes. Firstly, an insole to the

bottom of the last is attached. It is only a temporary attachment. Sometimes, mostly when

welted shoes are manufactured, the insole has a rib attached to its under edge. The upper is

stretched and molded over the last and attached to the insole rib. After the procedure

completes, a "lasted shoe" is obtained. Now, the welt- a strip of leather or plastic- is sewn

onto the shoe through the rib.

The upper and all the surplus material is trimmed off

the seam. The sole is then attached to the welt and both are stitched together. The heel is then

attached which completes the "making" of the shoe. That was the process for heeled shoes.

When a flat shoe is in the making, there are considerably fewer operations. The insoles in this

case are flat and when the uppers are 'lasted', they are glued down to the surface of the inner

side of the insole. The part of the upper, which is glued down, is then roughed with a wire

brush to take off the smooth finish of the leather.

This is done because rough surface absorbs glue to give a stronger

bond. The soles are usually cut, finished and prepared as a separate component so that when

they are glued to the lasted upper, the result is a complete and finished shoe. Soles can also be

pre-molded as a separate component out of various synthetic materials and again glued to the

lasted upper to complete the shoe.

Finishing Department and the Shoe Room

The finishing of a shoe depends on the material used for

making it. If made of leather, the sole edge and heel are trimmed and buffed to give a smooth

finish. To give them an attractive finish and to ensure that the edge is waterproof, they are

stained, polished and waxed. The bottom of the sole is often lightly buffed, stained and

polished and different types of patterns are marked on the surface to give it a craft finished

look. A "finished shoe" has now been made. For shoe room operation, an internal sock is

fitted into shoe which can be of any length- full, half or quarter. They usually have the

manufacturer’s details or a brand name wherever applicable. Depending on the materials used

for the uppers, they are then cleaned, polished and sprayed. Laces and any tags that might

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have to be attached to the shoes, such as shoe care instructions are also attached. The shoes,

at last, get packaged in boxes.

PROCESS IN SIMPLE

First they see size

Common size is 42 so they make from 35-46 size shoes, they make sample shoe.

Then hand cutting,

Then pattern has been made.

Cutting pieces.

Dying,

Cutting components,

Shoe has three parts front top bottom attachments in that the shoe will go on into

process called attaching, stitching, lamping, marking.

Putted into threaded tapes adhesive creams machinery items off all.

PRODUCT FEATURES

Good quality 

Reasonable price 

High production

Operating speed: 0.5-15m/min.

Extremely long service life.

High efficiency 

Accurate 

Durable...

U shaped rack, preventing boots from slipping down 

PLANT DESIGN

SAMPLE Double-layer infrared shoe production line

PRODUCT DETAILS

Quick Details

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Place of Origin: BLISS Brand Name: rocmachine Model

Number: R-9980C

Function: product line for making shoes

Dimension: 16800*1350*1550Power: 48kw

Packaging & Delivery

Packaging Detail: wooden cases or in accordance with the requirements of customers

Delivery Detail: within 15 days

DOUBLE-LAYER INFRARED ASSEMBLY LINE

1. Technical parameters

Machine size: 16800*1350*1550mm

Power: 48kw

Electric voltage: 380V/50Hz

Capacity: 1800~2000/8h

2. Features

Imported low-glare filters infrared (NIR) lamps to heat the glue evenly inside

and outside, and with hot air circulation for fast drying and activation of stable glue; oven and

gluing bits are equipped with suction and exhaust devices, hidden inside the oven exhaust

system can smell exhaust So effectively excluded, to ensure the physical and mental health

staff; using SCR analog 4-20mmA, high-precision temperature control system so that the

infrared brightness temperature and precise control available; adjustable shoe-laying shelf is

suitable for all kinds of shoes ,and the 25-inch high boots can be hung upside down;

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LEARNING OBJECTIVES

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LIMITATIONS

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OBSERVATIONS

1. There was no proper transportation facility available.

2. Employees are not having proper dress code.

3. No local advertisements to their products.

4. Sports shoes are not manufactured.

5. No promotion of their products communication media like television.

6. No proper fire accident evacuation.

7. Only Muslim peoples are appointed in the admin department that too only men

8. Each department head are guided in a much planned manner.

9. Predictions are made how the future trend may like and exhibited if it works out they

proceed with the production process.

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SUGGESTIONS

Control and reduction of time and cost of inventory.

Traceability of delivery.

Contrasting counterfeit from manufactures in low cost countries and improved.

Automatic control of the raw material of the safety shoes which have a specific ISO.

En class.

Adoption of a system which allows linking internal procedures to the future request of

large and specialized distribution.

Presently the main benefits are for the customers using these solutions are

summarized as follows.

Automatic control system.

Easier pair re-coupling after washing.

Automatic monitoring of exit points for verifying the complete staff evacuation in

case of danger.

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CONCLUSION

In conclusion, it takes more than luck to produce a successful company.

while the reasons why Bliss is the biggest shoe company are numerous, the key

distinctiveness which towers over its competitors lies in the area of marketing, particularity in

the area of consumer brand awareness and brand power. .

Two key attributes of this distinctiveness are its inability to be easily replicated and

the value or benefit it offers to consumers. As bliss becomes a more integrated part of world

culture, its brand power becomes increasingly difficult to replicate. This image is something

that competing companies cannot easily duplicate by simply enhancing the physical

characteristics of their products. After looking at the above data we have come to a

conclusion that presently there is a trend of considerable increase of shopping malls in all the

metro cities, small towns and a large section of middle class, upper middle class people are

coming for shopping because of the following reasons:

1. Customers convenience for shopping. Items from shoes to clothing, grocery to electronics

are available under one roof.

2. Better environment and improved customer service.

3. Competitive price with seasonal discount various gift scheme.

4. Various options to the customer for choosing brand and variety.

5. Ample scope of promoting sales and enhance brand image.

6. Scope of employment at local area for various segment

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BIBLIOGRAPHY

TEXT BOOKS:

MAGAZINES:

WEBSITES:

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