§1What this business is
You cut dry-milled or printed leather, skive and stitch it on heavy-needle machines, fit straps, rivets and locks, and finish briefcases in sizes such as 18"×10" or 14"×6". Buyers are luggage and leather shops, corporate gift buyers and wholesalers. Leather quality and fittings decide the price.
Capacity: 4,800 briefcases a year (cost of production about ₹1,356 a piece, ₹65.10 L at full capacity).
§2Is it right for you?
Who it is for
A leather-goods maker or trader with contacts among luggage shops and corporate buyers.
Who it is not for
Someone without leather experience or a sales network.
Advantages
- A small team of 5 can run it
- Each briefcase sells for a good price, so volume needs are low
- Corporate and institutional bulk orders are possible
- Machines cost only ₹4.34 L
Drawbacks
- Office bags are moving to backpacks and synthetic cases
- Leather stock ties up most of the money
- Bulk buyers bargain hard and pay late
- Locks and fittings must be bought in
Skills you need
- Pattern cutting and leather selection
- Heavy-needle stitching and fitting hardware
- Quality checking of finish
- Bulk and corporate selling
Why difficulty 3/5: The craft is learnable, but demand is narrowing and needs active selling.
§3Market
Who buys
- Luggage and leather-goods shops
- Corporate and institutional buyers
- Wholesalers
How it sells
- Supply to retail shops
- Bulk orders for companies and offices
- Online sales under your own brand
Good to know
- The profile describes it as a consumer item made in many sizes to customer demand.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Flat-bed single-needle industrial stitching machine (31K) with motor | as per profile | — |
| Cylinder-bed heavy-needle industrial stitching machine with motor | as per profile | — |
| Skiving, strap-cutting, shearing and riveting machines | as per profile | — |
| Work tables (3 ft × 8 ft, steel frame, ply top), steel racks, workshop tools | 1 lot | — |
| Total equipment incl. electrification and office furniture | 1 lot | ₹4.34 lakh |
From: KVIC Project Profile — Leather Briefcase (PMEGP)
- Natural dry-milled (NDM) or printed dry-milled (PDM) leathernamed in the profile; raw material ₹55.00 lakh a year at full capacity
- Locks, rivets, handles, lining and threadbought-in fittings
- Labels and packing material₹75,000 a year in the profile
§5Licences & registration
- Udyam registration
- GST
- Trade licence from the local body
- Trademark for your brand (optional)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP fits (KVIC profile); MUDRA covers loans up to ₹20 L; CGTMSE gives a collateral-free guarantee; Stand-Up India for SC/ST or women founders.
§7Money
How the investment is worked out: KVIC profile: equipment ₹4.34 L (flat-bed 31K and heavy cylinder-bed stitching machines, skiving, strap-cutting, shearing and riveting machines, work tables, racks, electrification, office furniture) + working capital ₹10.70 L = ₹15.04 L. Land own, work shed rented (no cost in the project).
Working capital: Working capital is ₹10.70 L of ₹15.04 L — leather and fittings cost ₹55.00 L a year.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Council for Leather Exports (CLE)
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Shift in demand to backpacks and synthetic bags
- Leather price swings
- Late payment on bulk orders
- Unsold stock of old designs
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working leather briefcase unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
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 Leather Briefcase?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.