§1What this business is

Leather or synthetic leather is cut into parts, which are stitched into the upper. The upper is pulled over a wooden last and the sole is attached; after the last is removed the shoe is finished. Chappals are made the same way. One worker with a helper can run the unit, which also repairs shoes.

Capacity: 125 pairs of shoes or chappals a month (the sales line counts 150 pairs).

§2Is it right for you?

Who it is for

A trained cobbler or footwear artisan who wants an own workshop.

Who it is not for

Someone without footwear-making skill — buyers notice poor lasting and stitching at once.

Advantages

  • Very small investment
  • Repairs bring daily cash even in slow months
  • Handmade shoes can be made to a customer's size

Drawbacks

  • Factory-made shoes and chappals are cheap and everywhere
  • Output is limited to what two people can make by hand
  • Income depends on the owner's own skill

Skills you need

  • Cutting leather with little waste
  • Stitching uppers
  • Lasting and sole fixing
  • Repair work

Why difficulty 2/5: Small and simple to start, but income rests on hand skill and steady local demand.

§3Market

Who buys

  • Village and small-town customers
  • Local footwear shops

How it sells

  • Sales and repairs at the workshop
  • Supply to nearby shops and weekly markets

Good to know

  • The profile says shoes and chappals are mostly produced in small and cottage industry.
  • Monthly sales in the profile are ₹25,500.

§4Raw material & machinery

ItemQtyCost
Industrial stitching machine1₹6,600
Buffing machine1₹3,300
Wooden lasts8₹1,120
Hand tools and equipmentlot₹2,500

From: MSME-DI Hyderabad project profile — Shoe Making (Hand Made) and Repairing

  • Leather foam15 m a month at ₹325 a metre
  • Soles125 pairs a month at ₹22 a pair
  • Lining material15 m a month at ₹160 a metre
  • Other materials (adhesive, thread, fittings)₹2,750 a month

From: MSME-DI Hyderabad project profile — Shoe Making (Hand Made) and Repairing

§5Licences & registration

  1. Udyam registration
  2. Trade licence from the local body
  3. GST registration once turnover crosses the limit
  4. Check the BIS Quality Control Order for footwear — it covers many leather and rubber footwear types

We can do this registration for you

§6Schemes & subsidies

A MUDRA Shishu loan covers the ₹30,000 cost; PMEGP also funds village footwear units.

§7Money

How the investment is worked out: Fixed capital ₹13,520 (industrial stitching machine ₹6,600, buffing machine ₹3,300, 8 wooden lasts ₹1,120, hand tools ₹2,500) + working capital for one month ₹16,475 = total capital investment ₹30,000 as printed. Workshop 300 sq ft rented at ₹1,500 a month.

Working capital: ₹16,475 a month: 15 m of leather foam at ₹325 a metre, 125 pairs of soles at ₹22, 15 m of lining at ₹160 a metre, other materials ₹2,750, helper, rent and sundries.

Year not printed on the MSME-DI Hyderabad profile; the prices are old — check current machinery and material prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

6403.99Other footwear with outer soles of rubber, plastics or leather and uppers of leather

Export council / board: Council for Leather Exports (CLE)

  • A two-person village unit rarely exports directly; this code helps if you supply an exporter.
  • Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Competition from factory-made footwear
  • Leather price rises
  • Slow sales off-season
  • Footwear quality rules (BIS) tightening

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working handmade shoe making and repair unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, Trade licence from the local body), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Handmade Shoe Making and Repair?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. MSME-DI Hyderabad project profile — Shoe Making (Hand Made) and Repairing

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.