§1What this business is
Chrome-tanned wet-blue splits from cow or buffalo hides are shaved to 0.9–1.0 mm, rechromed, neutralised, retanned, fat-liquored, dried, staked, buffed and dusted. A latex or PU coat is applied to the grain side, a hair-cell print is pressed on, and a polyurethane foil is plated over it in a hydraulic press under controlled heat and pressure. Edges are trimmed, the area is measured and the leather is packed. Makers of fancy leather goods in India and abroad buy it; the profile counts 15 sq ft per side.
Capacity: 90,000 sides a year — about 13,50,000 sq ft — valued at ₹3.38 crore.
§2Is it right for you?
Who it is for
A tanner or leather trader in a cluster such as Kolkata, Kanpur or Chennai with buyers for fancy leather goods.
Who it is not for
Someone outside a tannery cluster or without a CETP connection.
Advantages
- Turns low-value splits into a saleable fashion leather
- Splits are plentiful in tannery clusters
- Starts from wet blue, so no beam-house work
- Colours and prints can follow buyer choice
Drawbacks
- Rechroming and retanning still produce effluent
- Product competes with full synthetic leather
- Quality of splits varies a lot
- Hydraulic press is a big single cost
Skills you need
- Wet-blue processing
- Laminating and press control
- Colour and print matching
- Selling to leather-goods makers
Why difficulty 4/5: Tannery process and effluent rules, though it starts from wet blue.
§3Market
Who buys
- Fancy leather goods makers (bags, wallets, belts)
- Footwear makers
- Leather traders
- Overseas buyers
How it sells
- Direct supply to manufacturers
- Leather markets in clusters
- Export orders
Good to know
- The profile names the USA, Canada, Britain, Germany, Italy, Australia and Japan as export markets.
- It says exact export demand figures were not available when it was written.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Hydraulic press for printing and laminating | 1 | ₹10,00,000 |
| Tanning drums 8' × 6' with 15 HP motor | 2 | ₹3,60,000 |
| Single-width shaving machine, 5 HP | 2 | ₹1,20,000 |
| Reversible setting-out machine, 1500 mm | 1 | ₹1,65,000 |
| Single-width buffing machine, 5 HP | 2 | ₹1,10,000 |
| Toggle chamber with 10 plates | 1 | ₹1,25,000 |
| Measuring machine | 1 | ₹2,00,000 |
| Generator set | 1 | ₹1,50,000 |
From: DC-MSME project profile — PU Laminated Split Leather (2002)
- Wet-blue splits (cow or buffalo)7,500 sides (about 1,12,500 sq ft) a month at ₹12 per sq ft
- Processing chemicals and PU foil₹6 per sq ft
From: DC-MSME project profile — PU Laminated Split Leather (2002)
Suppliers in Building Business Bazaar
Allied Resin Chemicals Ltd · Kolkata →Annapurna Enterprises · Kolhapur →Asia Tannery · Kanpur →Atlanta Trading Company · Mumbai →BASF Chemicals (Pvt.) Ltd · Kanpur →Indofil Chemical Ltd · Mumbai →Leather Chemical and Industries Ltd. · Kolkata →Prototype Development · Chennai →Solai Engg. Works · Mumbai →Zaz Tannery · Kanpur →Alam Tannery · Kolkata →Bharat Udyog · Kolhapur →
§5Licences & registration
- Udyam
- GST
- State Pollution Control Board consent (tanneries are in the Red category)
- Membership of a common effluent treatment plant or your own ETP
- Factory licence
§6Schemes & subsidies
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
Above PMEGP's ₹50 lakh limit; CGTMSE (collateral-free guarantee) and Stand-Up India (₹10 lakh–₹1 crore for SC/ST and women) fit.
§7Money
How the investment is worked out: DC-MSME profile: land and building ₹35.00 L + machinery and equipment ₹28.43 L (hydraulic press ₹10.00 L) + pre-operative ₹0.25 L = fixed capital ₹63.68 L; working capital for 3 months ₹66.96 L; total ₹130.64 L.
Working capital: ₹66.96 L for 3 months; wet-blue splits (7,500 sides a month at ₹12 per sq ft) are the main cost.
Prices from 2002 — machinery, land and raw-material costs will be much higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Council for Leather Exports (CLE)
- The right heading depends on the coating thickness; check with DGFT or a customs broker.
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
§9Risks — where people fail
- Split supply and price
- Competition from synthetic leather
- Effluent compliance
- Changing fashion colours
§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 pu-laminated split leather unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, 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 PU-Laminated Split Leather?
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.