§1What this business is
A portfolio bag is a leather bag for papers, pens, a tiffin box and personal things; medical representatives use it to carry medicine samples. The bags are made from vegetable-tanned or semi-chrome leather. Workers cut patterns, lay them out on the leather to save material and cut the parts by hand, checking for holes and flaying cuts. Edges are skived and coloured, the parts are assembled and stitched, and the handle is fixed on the central portion. Zips, locks, buckles and rivets are fitted, and the bag is cleaned, polished and packed. The profile says the same plant can also make briefcases, suitcases, other bags and industrial hand gloves.
Capacity: 18,000 bags a year: 8,000 first-quality bags at ₹575 each (₹46,00,000) and 10,000 second-quality bags at ₹475 each (₹47,50,000), total ₹93,50,000. One 8-hour shift, 300 working days; the raw material table is for 1,500 bags a month.
§2Is it right for you?
Who it is for
Someone trained in leather goods making who can sell to bag shops, companies that gift or issue bags, and exporters.
Who it is not for
Someone who cannot judge leather or has no buyers lined up for 1,500 bags a month.
Advantages
- The profile says the machines and raw materials are easily available in India and the technology is simple
- The same plant can make briefcases, suitcases, other bags and industrial gloves
- The profile says this kind of leather goods unit does not pollute
- Low power need — 5 HP
Drawbacks
- Leather is ₹3,60,000 of the ₹5,16,000 monthly raw material bill
- Components are cut by hand, so output depends on a good master cutter
- The profile expects only 60% efficiency in the first year
- Working capital (₹19,23,000) is about three times the fixed capital (₹6,00,000)
Skills you need
- Judging leather and laying out patterns with little waste
- Skiving, edge colouring and stitching on flat-bed and cylinder-bed machines
- Fitting locks, zips, rivets and handles neatly
- Designing models that buyers and exporters accept
Why difficulty 3/5: Simple machines, but the bags sell only if the cutting, stitching and finish are good.
§3Market
Who buys
- Office-goers and business people, through bag and luggage shops
- Medical representatives and the companies that issue bags to them
- Leather goods wholesalers
- Export buyers
How it sells
- Supply to bag and luggage shops
- Bulk orders from companies
- Export orders made to the buyer's specification
Good to know
- The profile says the leather goods trade is centred in Kolkata, Mumbai, Delhi, Chennai, Kanpur and Bangalore.
- The profile says India exports portfolio bags and similar items to Bangladesh, Nepal, the Middle East, Germany and Canada.
- Quality is as per the buyer's specification; the profile names no Indian Standard.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Flat-bed stitching machine | 2 | ₹20,000 |
| Cylinder-bed stitching machine (imported) | 1 | ₹1,00,000 |
| Skiving machine | 1 | ₹50,000 |
| Splitting machine | 1 | ₹2,00,000 |
| Punching machine | 1 | ₹20,000 |
| Roughing, buffing and polishing machine | 1 | ₹20,000 |
| Cutting table for components | 2 | ₹10,000 |
| Tools and equipment | — | ₹50,000 |
From: DC-MSME project profile — Portfolio Bag (2003)
- Vegetable-tanned finished leather or semi-chrome leather, brown, coffee brown or black, 1.2 mm to 1.5 mm thickabout 1,800 kg a month at ₹200 per kg = ₹3,60,000 (2003 prices)
- Grinderies — locks, D-rings, zips, rivets, adhesive and thread₹100 per bag = ₹1,50,000 a month
- Packing₹4 per bag = ₹6,000 a month
From: DC-MSME project profile — Portfolio Bag (2003)
§5Licences & registration
- Udyam registration
- GST registration
- Trade licence from the local body
- Factory licence if the number of workers crosses the Factories Act limit
- Import Export Code (IEC) if you export
Start it in your state
Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.
§6Schemes & subsidies
At 2003 prices the project is ₹25,23,000, under the PMEGP ceiling of ₹50 lakh for manufacturing — but work out today's cost and check it against that ceiling. CGTMSE can back a loan without collateral.
§7Money
How the investment is worked out: The shed is rented. Fixed capital ₹6,00,000 (machinery, tools, office equipment, furniture and electrification ₹5,51,000 + pre-operative expenses ₹49,000) + working capital for 3 months ₹19,23,000 = ₹25,23,000.
Working capital: Recurring cost is ₹6,41,000 a month: raw material ₹5,16,000, salaries and wages ₹90,000, utilities ₹5,000 and other expenses ₹30,000 (including rent). The profile keeps 3 months of this, ₹19,23,000, as working capital.
Prices from 2003 — machinery, rent and wage costs will be much higher now.
§8Export potential
Export council / board: Council for Leather Exports
- The profile prints no HS code. Look up the correct code for leather bags and cases in the DGFT ITC-HS list before you export.
§9Risks — where people fail
- Leather price rises and uneven hide quality
- Cheaper non-leather bags taking the same buyers
- Export buyers rejecting lots — the profile asks for rigid quality control for export
- Bulk buyers paying late
§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 portfolio bags (office and executive bags) 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 registration), 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
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Leather Portfolio Bags (Office and Executive Bags)?
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.