Leather Long Boot

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Introduction
Footwear has come a long way from its humble beginning. It is no longer just a functional necessity, but rather, something that is flaunted as a fashion statement. In earlier days, a person was considered well heeled if he had a pair of formal shoes, a pair of chappal and may be one pair of sandal foot casual footwear. Today's average consumer is more conscious of his image and more selective in his preference. He is interested in variety and style all this has helped the boom of the footwear industry. Gents Leather long boot welted with double insole is one of the sophisticated items of footwear industry. Footwear industry is one of the major export oriented industries in India. The raw materials for the manufacture of these boots are indigenously available. There is no dearth of raw material as well as labour for the manufacture of the boot because these are available locally.

Market Potential
Footwear industry is one of the major foreign exchange earners of India. Out of the export of around Rs. 7000 crores today leather goods and footwear constitute about 83% and finished leather about 15%, a real leap forward. In 1999-2000 finished leather fetched Rs. 1035 crores, from leather footwear, Rs. 1,433 crores, from footwear component, Rs. 994 crores from leather garments, Rs. 1380 crores and other leather goods Rs. 155 crores. The demand of the boot is increasing in the overseas market as well as internal market. In international market, the demand is increasing day-by-day as the export of boot is increasing every year.

Basis and Presumptions
Production of the boot is based on DOUBLE shift operation of 16 hrs. duration daily with 25 working days in a month. It has been presumed that the proposed unit will achieve 50% of its capacity in the first year of operation which will raise to 60%, 70%, 80% and 90% in second, third, fourth and fifth year respectively.
Sales revenue has been calculated on full capacity utilisation as given above. In the manpower projection, it has been presumed that the administrative and managerial staff will remain the same. Direct as well as casual labour will be utilized at 60% of their strength in first, second and third and 90% in the fourth and fifth year.
Depreciation has been charged on machinery at 10% on Boot last and tools @ 25%, office equipment @ 20% and interest on capital investment is taken at 12%.