§1What this business is
Jackets go through designing, cutting, sewing, lining and assembly, and finishing. Every needle hole stays in leather, so one wrong stitch can reject a jacket. The report says Indian leather jackets are made almost entirely for export, with home demand only in north Indian towns with hard winters.
Capacity: 60 jackets a day on a 10-hour shift; year 1 at 60% of capacity.
§2Is it right for you?
Who it is for
Someone with export buyer links or a job-work tie-up with an exporter.
Who it is not for
Someone who plans to sell only in the local market.
Advantages
- Export product with high value per piece
- Machinery is only ₹4.50 L
- India has an established leather-garment trade
- Can add coats, waistcoats and other leather wear
Drawbacks
- Thin year-1 margin (2.7%)
- Small home market — mostly cold north Indian towns
- One wrong stitch can scrap a jacket
- Export orders depend on buyers abroad
Skills you need
- Pattern making for leather
- Precise leather stitching
- Export documentation
- Quality inspection
Why difficulty 3/5: Low set-up cost, but export-dependent and unforgiving of mistakes.
§3Market
Who buys
- Importers and buying houses abroad
- Exporters giving job work
- Buyers in cold north Indian towns
How it sells
- Export orders
- Job work for large exporters
- Winter-wear shops in the north
Good to know
- The report cites FY 2014-15 leather-apparel exports of US$604.5 million, of which jackets and jerseys were US$458.7 million (75%).
- The report says the average FOB price of one jacket is about US$200.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Flat-bed single-needle industrial sewing machine | 2 | ₹1,10,000 |
| Cylinder-bed single-needle industrial sewing machine | 1 | ₹96,000 |
| Fabric cutter for leather | 2 | ₹27,000 |
| End / roller cutter | 2 | ₹37,000 |
| Button-hole making machine | 2 | ₹1,80,000 |
From: PMEGP sample project report — Leather Jackets (prepared by Udyami/Samadhan)
- Tanned leatherhides and skins differ in texture and colour
- Zips, buckle belts, buttons and threadstrims
- Treating chemicals, wax, adhesive, brushes and tool kit (scissors, holders, hammers)consumables
From: PMEGP sample project report — Leather Jackets (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
Akay Sales Corporation · Delhi →Atlant Trading Pvt. Ltd · Mumbai →Chandra’s Chemical Ent. Ltd · Chennai →Cochin Leathers Pvt. Ltd · Kochi →Jay Cee Enterprises (P) Ltd · Delhi →Prototype Dev. Training · Chennai →Solar · Mumbai →T. Abdul Wahid and Co · Chennai →Twin Star Engineering · Chennai →Zeb Exports Pvt. Ltd · Bengaluru →
In our raw material database
§5Licences & registration
- Udyam registration
- GST
- IEC for export
- Registration with CLE for export benefits
- Trade licence
§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; MUDRA up to ₹20 L; CGTMSE for collateral-free loans; Stand-Up India for SC/ST or women owners (just above ₹10 L).
§7Money
How the investment is worked out: Samadhan report: plant & machinery ₹4.50 L, furniture ₹1.50 L, working capital ₹4.44 L = ₹10.44 L. Land own or rented, not in the cost.
Working capital: Working capital ₹4.44 L (bank ₹4.00 L); 10 days of stock, 15 days' credit to buyers.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: CLE
- CLE (Council for Leather Exports) runs buyer-seller meets and fairs.
- Exports need an IEC from DGFT.
§9Risks — where people fail
- Order cancellations from abroad
- Leather quality and colour mismatch
- Rejection costs
- Falling export demand (the report notes a 3.25% fall in jacket trade)
§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 jacket making 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 Jacket Making?
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.