organization study on leather

8/11/2019 Organization Study On Leather

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REPORT ON LAB HOURS PROJECT

OF

Aysha Sabeel Leathers Ltd

Submitted in partial fulfilment of the requirement of the

Masters in Business Administration Programme

Offered by Jain University during the year 2013-14

BY

MOHAMMED SHAIQ

2nd

Semester MBA

UNDER THE GUIDANCE OF

PROF.Sharath Kumar

# 319, 17thCross, 25thMain, JP Nagar 6thPhase Bangalore560 078

Phone : 080-43430400, Fax : 080-26532730

E-mail :[email protected],Website :www.bschool.cms.ac.in
mailto:[email protected]:[email protected]:[email protected]://www.bschool.cms.ac.in/http://www.bschool.cms.ac.in/http://www.bschool.cms.ac.in/http://www.bschool.cms.ac.in/mailto:[email protected]


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Contents

Chapter-1 : Introduction to the study & Industry Profile

Chapter-2 : Company Profile

Chapter-3 : Organisational Design

Chapter-4 : Business Level Functions and Processes

Chapter-5 : Findings & Conclusions


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Declaration

I, hereby declare that this Lab Hours / Project ( Organization study ) for

Aysha Sabeel Leathers Ltd is prepared by me during the academic

year 2013-14 under the guidance of prof. Sharath Kumar.

This project is not based on any previously submitted project for the

award of any degree or diploma offered by any university.

It is the result of my own effort.

Name: MOHAMMED SHAIQ

Sem: 2ndSec: C

Reg.No: 13MBA63051

Date :2/19/2014

Place: BangaloreSignature


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Chapter 1Introduction to the study and industry profile

INDIAN LEATHER INDUSTRY

Size of the

Industry

Indian leather industry has capacity to

produce l776 million pairs; 112 million

pairs of Shoe Uppers; Non-leather footwear

- 960 million pairs

Geographical

distribution

Tamil Nadu - Chennai, Ambur, Ranipet,

Vaniyambadi, Trichy, Dindigul ; West

Bengal - Kolkata ; Uttar Pradesh - Kanpur,

Agra & Noida ; Maharashtra - Mumbai ;

Punjab - Jallandhar ; Karnataka -

Bangalore ; Andhra Pradesh - Hyderabad ;

Haryana - Ambala, Gurgaon, Panchkula

and Karnal; Delhi

Output per annumHas an annual turnover of approximately

US$ 5,000,000

Percentage in

world market

Indian Leather Industry currently is one

among the top 8 industries for export

revenue generation in India, holding 10%

of the global raw material, and 2% of theglobal trade

Market

capitalization

India produces approx 700 million pairs of

leather footwear every year and accounts

for an 18% share of the total Indian leather

export.

History

Over the years the Indian Leather Industry has

undergone drastic change from being a mereexporter of raw materials in the early 60's and 70's

to an exporter of finished, value-added leather

products. The main reason behind this good

transformation is the several policy initiatives taken

by the government of India. Indian proactive

government initiatives have yielded quick and

improved results. Today the Indian leather industry


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has attained a prominent place in the Indian export

and has made the industry one of the top 7 industries

that earns foreign exchange for the country.

Since 1991 as India adopted the globalization and liberalized economic policies, the leatherindustry has flourished consistently in several ways and has contributed heavily to the

Indian exchequer. Investing in Indian Leather Industry is advantageous because the

industry is poised to grow further and achieve a major share in the global trading market.

The post liberalization era has opened up a great plethora of opportunities for the Indian

Leather Industry. As the global players looking for new sourcing options while in addition

to China, India stands to gain a bigger share of the global market. Leading brands from

the US and Europe have plans to source leather and leather products from India.

Indian Leather Industry currently is one among the top 8 industries for export revenue

generation in India, holding 10% of the global raw material, and 2% of the global trade.India has become biggest livestock producer in the world, with the capacity of 1.8 billion

square feet of leather production annually. Global Footwear of 13% production comprising

of 16 billion pairs are made in India. India today produces 2065 million pairs of various

categories of footwear. It exports 115 million pairs, thus having 95% of its production to

meet its own domestic demand.

Indian leather industry has the credit of being one of the oldest manufacturing industries

catering to the global market from the 19th century. The age of the industry has linked it

with social and organizational structure, and emerges as a complex one with elements of

continuity and traditional structures. The ultimate quality of the Indian leather combined

with efficient craftsmanship has secured a sturdy place for Indian leather goods in theglobal market. Indian leather industry is getting more organized, with a springing capacity

for expansion.

Brief Introduction

Indian Leather Industry has developed to a large extent

and is the second largest producer next to China. The

industry is equipped mostly with a potential for

employment generation, growth and exports, with the

annual exports touching 2 billion USD. The industryexperienced a positive metamorphosis from being a

transporter of raw materials to an established exporter

of value added and finished leather products. Currently

it is on an ever increasing phase with optimum utilization

of available raw materials and maximum returns from

exports.


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India has less than 3% share in the global trade in leather compared to China's 20%.

Government of India realizing the growth potential of the leather industry has been

making significant efforts to promote rapid advancement of the industry. On June 30,

2005, the Cabinet Committee on Economic Affairs (CCEA) decided to implement an Rs 2.9

billion scheme for the integrated development of the Indian Leather Industry. Under thescheme, existing tanneries will be modernized and new units will be set up for footwear,

components and leather products. This scheme is expected to result in gains in terms of

productivity, right-sizing of capacity, cost-cutting, and design-development. The leather

and leather products industry is one of the oldest manufacturing industries in India. The

Indian leather industry provides employment to about 2.5 million people in the country

and has an annual turnover of approximately US$ 5,000,000.

Indian leather Industry occupies a prominent place in the Indian economy in view of its

massive potential for employment, growth and exports. There has been an increasing

emphasis on its planned development, aimed at optimum utilisation of available raw

materials for maximising the returns, particularly from exports. The exports of leather andleather products gained momentum during the past two decades. There has been a

phenomenal growth in exports from Rs.320 million in the year 1965-66 to Rs.69558 million

in 1996-97. Today Indian Leather Industry has attained well merited recognition in

international markets besides occupying a prominent place among the top seven foreign

exchange earners of the country.

Market capitalization

Among all the industries the footwear industry

in particular holds greater potential for

investments in India. Today India produces

approx 700 million pairs of leather footwear

every year and accounts for an 18% share of the

total Indian leather export.

Size of the industry

Indian Leather industry Today has capacity to produce l776 million pairs; 112 million

pairs of Shoe Uppers; Non-leather footwear - 960 million pairs of non-leather footwear's

which includes shoes made of rubber, moulded PVC and other material.

Total contribution to the economy/ sales


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In 2009-10 with an annual turnover of over US$ 7 billion, the export of leather and leather

products increased manifold over the past decades and touched US$ 3.40, with recording a

cumulative annual growth rate of about 5.43% (5 years).

Though India is the second largest producer of footwear and leather garments in the world,

India accounts for a share of close to 3% in the global leather import trade of US$ 137billion (2008).

Leather Production centers for leather products are located in Tamil Nadu - Chennai,

Ambur, Ranipet, Vaniyambadi, Trichy, Dindigul ; West Bengal - Kolkata ; Uttar Pradesh -

Kanpur, Agra & Noida ; Maharashtra - Mumbai ; Punjab - Jallandhar ; Karnataka -

Bangalore ; Andhra Pradesh - Hyderabad ; Haryana - Ambala, Gurgaon, Panchkula and

Karnal; Delhi

Domestic and Exports Share

Main leather exports comprise of skins and hides such as cow, sheep nappa, goat skin and

wet blue. Footwear, garments, handbags, leather gloves, purses, wallets, and briefcases are

some of the products exported. Ranipet, Ambur, and Chennai in Tamil Nadu, Mumbai in

Maharashtra, Kanpur in Uttar Pradesh, Agra, Delhi, Ludhiana, Sonepat, Pune, Kolkata,

Calicut and Ernakulum are the major production centre in India.

To develop the footwear industry the Indian Government has come up with numerous

initiatives. Footwear Industry is now de-licensed and de-reserved, providing expansion of

capacities on modern lines with state-of-the-art machinery. Government has also permitted

100% Foreign Direct Investment through the automatic route for the footwear sector.

Nearly 75% of the leather products exported from India goes to EU and US.


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Top leading Companies

Acme, Clarks, ColeHann, Deichmann, Nautica, Nike, Nunn Bush,Ecco, Elefanten, Hush

Puppies, Double H, Florsheim, Gabor, Hasley, Justin, Marks & Spencer, Reebok,

Salamander, Stacy Adams, Tony, Lama, Next, Bally are the prominent brands sourcedfrom India. Lakhani, Metro, Action Red Tape, Bata, Liberty, Khadims, are some Indian

brands that have a well established market in India. Aldo, Bally, Clarks, Ecco, Florshiem,

Ferragammo, Hush Puppies, Lee cooper, Lloyd, Marks & Spencer, Nike, Nine West, New

Balance, Reebok, Rockport, Stacy Adams are a few notable leather product brands sold in

India.

Top 10 leather exporters

Tata International Ltd.

Florind Shoes Ltd.

Punihani International

Farida Shoes Ltd.

Mirza Tanners Ltd.

T. Abdul Wahid & Company

Hindustan Lever Ltd.

Super House Leather Ltd.

RSL Industries Ltd.

Presidency Kid Leather Ltd.

Employment opportunities

The Indian Leather industry categorizes under organized sectors and produces garments,

leather merchandise besides tanning and finishing, with major manufacturing hubs in

Chennai, Kanpur and Kolkata. Indian leather industry is set to boom with bright career

opportunities in both technical and designing areas. The Indian corporates together with

foreign multinationals in this industry have made it possible to look forward to exciting

employment options. There are opportuntieis as designers, human resources and all the

finance & marketing related jobs. The industry employs 2.5 million persons presently.


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Latest developments

The Indian federal government has earmarked a Rs 4.5 billion grant to be made

available to the industry to boost the country's leather industry over a span of five

years, the fund availability is conditional upon the sector's attracting an annual

investment of Rs 2.2 trillion.

In 2002, the investments in the Indian Leather Industry stood at Rs 410 million.

Footwear and their components account for about 25 %of India's total leather

products exports. These two markets also offer Indian leather industry vast scope

for exports of saddler and harness.

India is the world's second largest producer of footwear; its production estimated

over 700 million pairs per annum. At about US $ 300 million per year, footwearaccounts for 18 percent share of total exports of leather exports.

Products exported from India include dresses, shoes, casuals, moccasins, sports

shoes, horacchis, sandals, ballerinas, and booties. Major production centres are at

Chennai (Madras), Delhi, Agra, Kanpur, Mumbai (Bombay), Calcutta and

Jalandhar.

The government of India for it 200-2009 Foreign Trade Policy has identified the

leather sector as a focus sector in view of its immense potential for export growth

and generation of employment generation prospects.

India is one of the best destinations in the world for investing in the leather industry

because India is endowed with abundant raw materials required for the industry to

grow. India has a huge population of cattle. India accounts for 21% of the world's

cattle and buffalo and 11% of the world's goat and sheep population.

The Government is also making efforts to implement various Special Focus

Initiatives under the Foreign Trade Policy for the growth of leather sector. Leather

industry is aimed to augment the production, thereby to enhance export upto US$

7.03 billion by 2013-14 which shall create additional employment opportunities for

overall one million people.


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PEST Analysis

Political

Ecological/environmental issues

Regulatory bodies

Government policies

Trading policies

Wars and conflicts

Government terms and changes

Home market pressure

Economic

Home economy situation

Home economy trends

Overseas economies and trends

General taxation issues

Market and trade cycles

Customer/end-user drivers

International trade/monetary issues

Interest and exchange rates


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Social

Consumer attitudes and opinions

Eco friendly Law changes affecting social factors

Consumer buying patterns

Fashion and role models

Major events and influences

Buying access and trends

Lifestyle trends

Demographics

Technological

Competing technology development

Installing modern equipment

Associated/dependent technologies

Replacement technology/solutions

Maturity of technology

Manufacturing maturity and capacity

Information and communications

Consumer buying mechanisms/technology


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Porters 5 forces analysis

Bargaining power of Suppliers

A supplier comprises all sources for inputs that are needed in order to provide

goods or services.

The buyers have high profitability

Variation of cost among the competitors

Have regular or loyal customer/buyer.


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Threat of new entrants

Cost advantage

Protected by license and patents

Supply channel is under existing players Scarce of resources and labour

Threat of substitutes

Relative trends

Variation in cost

Customer relationship

Competitive rivalry within the Industry

Its hard to exit or shut down

Similar strategies among all competitors

Low market growth

Very less distributer Contracted base with penalty clause.

Bargaining power of a Customer

The bargaining power of customers determines how much customers can impose

pressure on margins and volumes.

They buy in large volume

Customers have low margin

Price sensitive

They can produce their own raw material


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Chapter 2Company Profile

Full nameAysha Sabeel Leathers Ltd.

Legal Address87/1 , B-2 Valyampet , Vaniyambadi635735

Company Logo

Aysha Sabeel Leathershas been in the service of the clients since 1987. The company works with

the mission of bringing innovative Leather Goods, making them durable and trendy at the same

time. It manufactures, exports and supplies designer collection of Leather Goods, which are changing

the trend of the market. Under the guidance of Mr. Shakeel Ahmed, the director, the team feels

motivated to bring forth innovative range with quality. He has done his MBA from Cardiff University,

UK & Post Graduation in Management Studies . He owns two huge factories in vaniyambadi . Once

the wet leather is undergone all the necessary requirements it is further taken to a another factory

which is a Dry one for further production.

He has appointed his younger brother Mr.Shabbir Ahmed to undertake the operations of

management , And the name Aysha has been named after her wife .

Status:Listed

Legal Form:Public Limited Company

Operational Status:Operational

Incorporation Date:March 13, 1987

Total Employees:121


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SWOT analysis

Strengths

Ecofriendly and natural Ergonomical Ethnic Fashion appeal for youth

Weaknesses Internal

Image of low low production Fewer raw material supply

Not very comfortable in trusting employees Industry uses conventional manufacturer

Threats

Shrinking Gradual move toward theof a century old cottage High budget advertisingby competitors

Opportunities External

Improving the product standardizing the end use Enhancement ofproductivity with the new technology Tap newer marketsplatform for wider distribution Introduction of variety

CAD/CAM


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Vision And Mission

The visionTo be the pioneer manufacturer of leather throughout the world and help in economic

development of the country through increased exports and providing employement oppurtunities.

The missionAysha Sabeel Leathers works hard to satisfy consumers needs by making high quality products,

provide the highest level of customer service and continues improvement in administrative,human and technical resources.

Values

- Commitment

- Integrity

- Passion

- Discipline

Products which are made out of the leather manufactured by the company are

Bags
http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=FdRrUkqj2VnsfM&tbnid=i_loIqtaGQJQgM:&ved=0CAUQjRw&url=http://www.asia.ru/en/ProductInfo/704685.html&ei=iKMDU9iHAYXniAf_-YHYDA&bvm=bv.61535280,d.aGc&psig=AFQjCNFVIIOg6AkZDks8Eu9gVrU9Y1lNnA&ust=1392833773575638


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Belts

Jackets
http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=pCizjbEFS8rsaM&tbnid=Dj236vnqFjNXDM:&ved=0CAUQjRw&url=http://www.alibaba.com/product-detail/TAILOR-CUSTOM-MADE-DESIGNER-LEATHER-JACKET_114424710/showimage.html&ei=PKQDU6WbG6SaiAe124D4BQ&bvm=bv.61535280,d.aGc&psig=AFQjCNFa-K3bTUpREjDiLEc4nhpbypyrvQ&ust=1392833926609493http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=o-y2OsShxZ4V6M&tbnid=ngmWe_-NFHHijM:&ved=0CAUQjRw&url=http://www.diytrade.com/china/pd/6026694/genuine_leather_belts_made_in_China.html&ei=4aMDU4CPLfGYiAffqYCYAQ&bvm=bv.61535280,d.aGc&psig=AFQjCNFVIIOg6AkZDks8Eu9gVrU9Y1lNnA&ust=1392833773575638http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=pCizjbEFS8rsaM&tbnid=Dj236vnqFjNXDM:&ved=0CAUQjRw&url=http://www.alibaba.com/product-detail/TAILOR-CUSTOM-MADE-DESIGNER-LEATHER-JACKET_114424710/showimage.html&ei=PKQDU6WbG6SaiAe124D4BQ&bvm=bv.61535280,d.aGc&psig=AFQjCNFa-K3bTUpREjDiLEc4nhpbypyrvQ&ust=1392833926609493http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=o-y2OsShxZ4V6M&tbnid=ngmWe_-NFHHijM:&ved=0CAUQjRw&url=http://www.diytrade.com/china/pd/6026694/genuine_leather_belts_made_in_China.html&ei=4aMDU4CPLfGYiAffqYCYAQ&bvm=bv.61535280,d.aGc&psig=AFQjCNFVIIOg6AkZDks8Eu9gVrU9Y1lNnA&ust=1392833773575638


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Shoes

Wallet

Car Seats cover ( Made out of cows skin )
http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=cO-d2RfDBCH_1M&tbnid=sU9IjgM60KErWM:&ved=0CAUQjRw&url=http://sp.quebarato.com.br/sao-paulo/carteira-tommy-hilfiger-wallets-oxford-slim-billfold-wallet-black__9C4A04.html&ei=VKoDU-ufMqSpiAf-lYHQBQ&bvm=bv.61535280,d.aGc&psig=AFQjCNGyrjW0hKPqgBSkwiJLO9FPgSPk_g&ust=1392835458898628http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=vsvisfuNu5QdYM&tbnid=4I6IR4q1TS2uUM:&ved=0CAUQjRw&url=http://www.highershoes.com/luxury-waxed-leather-tailor-made-high-end-mens-elevator-shoes-75cm.html&ei=gKQDU7TSK--ViAes04GwDw&bvm=bv.61535280,d.aGc&psig=AFQjCNFa-K3bTUpREjDiLEc4nhpbypyrvQ&ust=1392833926609493http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=cO-d2RfDBCH_1M&tbnid=sU9IjgM60KErWM:&ved=0CAUQjRw&url=http://sp.quebarato.com.br/sao-paulo/carteira-tommy-hilfiger-wallets-oxford-slim-billfold-wallet-black__9C4A04.html&ei=VKoDU-ufMqSpiAf-lYHQBQ&bvm=bv.61535280,d.aGc&psig=AFQjCNGyrjW0hKPqgBSkwiJLO9FPgSPk_g&ust=1392835458898628http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=vsvisfuNu5QdYM&tbnid=4I6IR4q1TS2uUM:&ved=0CAUQjRw&url=http://www.highershoes.com/luxury-waxed-leather-tailor-made-high-end-mens-elevator-shoes-75cm.html&ei=gKQDU7TSK--ViAes04GwDw&bvm=bv.61535280,d.aGc&psig=AFQjCNFa-K3bTUpREjDiLEc4nhpbypyrvQ&ust=1392833926609493


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Sofa ( Cows Skin )
http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=7teLhr50_sIk5M&tbnid=o2FXWhEdC8jv7M:&ved=0CAUQjRw&url=http://www.dimensionsinfo.com/leather-sofa-size-guide/&ei=06UDU9nCAaa9iAfRw4DIBg&bvm=bv.61535280,d.aGc&psig=AFQjCNFKyUGxdjJFjEQRlIBc5hrFhm1ezA&ust=1392834338179772http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=woqzmxqg9r6cDM&tbnid=uCG12nfMqqvRnM:&ved=0CAUQjRw&url=http://www.carsingh.com/car-accessories/hyundai-i20-leather-car-seat-covers&ei=w6QDU8n8Cae0iQeXr4DICw&bvm=bv.61535280,d.aGc&psig=AFQjCNGr507Coi8Y9hAJ1yey7aTISzQ62A&ust=1392834107722684http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=7teLhr50_sIk5M&tbnid=o2FXWhEdC8jv7M:&ved=0CAUQjRw&url=http://www.dimensionsinfo.com/leather-sofa-size-guide/&ei=06UDU9nCAaa9iAfRw4DIBg&bvm=bv.61535280,d.aGc&psig=AFQjCNFKyUGxdjJFjEQRlIBc5hrFhm1ezA&ust=1392834338179772http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=woqzmxqg9r6cDM&tbnid=uCG12nfMqqvRnM:&ved=0CAUQjRw&url=http://www.carsingh.com/car-accessories/hyundai-i20-leather-car-seat-covers&ei=w6QDU8n8Cae0iQeXr4DICw&bvm=bv.61535280,d.aGc&psig=AFQjCNGr507Coi8Y9hAJ1yey7aTISzQ62A&ust=1392834107722684


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\

Chapter 3 - ORGANISATIONAL DESIGN
http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=qAzJ3hZHibL_JM&tbnid=5vZokPrq74WaCM:&ved=0CAUQjRw&url=http://education-portal.com/academy/lesson/functional-structure-of-an-organization-advantages-disadvantages-example.html&ei=5agDU9byFObOiAeKt4CQDQ&bvm=bv.61535280,d.aGc&psig=AFQjCNFQaVXRMf8r-FpJCODqehi5PvK4xQ&ust=1392835149272088


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CHAPTER 4 -

BUSINESS LEVEL FUNCTIONS AND PROCESSES

The leather manufacturing processis divided into three sub-processes: preparatory stages,tanningand

crusting. All true leathers will undergo these sub-processes. A further sub-process, surface coating may

be added into the sequence. The list of operations that leathers undergo vary with the type of leather

MethodologyThe study was aimed at gathering information from different sources that play role in leather

manufacturing and are affected by the after effects of the production. In order to assess the level oftechnology used in leather production and waste disposal technology, tanneries located in

vaniyambadi were selected since most of the small scale and large scale tanneries are concentrated inthis area. Some odd leather units are located in vaniyambadi area. These units, which use many toxicchemicals, are the single largest contributor to the pollution of the surface as well as groundwater of

vaniyambadi area in tamil nadu.

Preparatory stages

The preparatory stages are when the hide/skin is prepared for tanning. During the preparatorystages many of the unwanted raw skin components are removed. Many options for pretreatment

of the skin exist. Not all of the options may be performed. Preparatory stages may include:
http://en.wikipedia.org/wiki/Tanninghttp://en.wikipedia.org/wiki/Tanninghttp://en.wikipedia.org/wiki/Tanninghttp://en.wikipedia.org/wiki/Tanning


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Soaking

Under soaking, salted skins are soaked in pits and paddles to remove the salt fromthe skin and to rehydrate the skin. Paddles are used to give agitation to skins and thereby toequalise the soaking process when the skins are soaked in huge quantities

LimingIn liming, unwanted hair and flesh is removed from the skin. Limestone powder is

mixed with the water in pits and paddles to loosen the hair from the skin. Unwanted hair isremoved manually using knifes without damaging the grain5

DelimingDeliming involves preparing the skin for the tanning process by removing theliming and unhairing chemicals. It is carried out in rotating drums (wood/steel) using

. Unwanted flesh is also removedusing fleshing machines

5 Grain is the topper part of the skin, where hair is present.

It takes around 1-1.5 hours to complete the process.Pickling, lowering of the pH value of the skin, is also done to help with the penetration ofcertain tanning agent using salt and acids


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TanningTanning is a process under which, the protein structure of skin is permanently

altered, so that it can never return to rawhide. There are two types of tanning, Mineral tanningand Vegetable tanning. Under Mineral tanning, chromium salt is added in the rotating drumsto process the skin and the output will be light blue in colour. While under Vegetable tanning,natural materials such as bark, wood, roots, leafs, etc. are used and the output will be light

brown in colour

Adjusting the thickness Thickness of the leather is adjusted by using shaving machines. Incase of very thick skins, splitting machine is used to split the leather into two slices, the

bottom layer called as Split can be used for making lesser value leather products. The sliced

skin again goes into the shaving machine to complete this process

DyeingDyeing of leather is done in rotating drums by mixing water, dyes and some specialoils (soluble fat). Special oil is mixed to lubricate and to give flexibility and softness.Additional materials for filling the fibre structure can also be added (re-tanning). Penetrationof colour will take minimum 6 hours. There are hundreds of varieties of colours and dyeing

process that can be used to enrich the product. After dyeing, leather is dried in frames to keepthem straight.

SofteningSoftening is done through staking machines. The number of times required for

leather to go through the machine depends on its end use. There are exceptions to thesoftening process such as Sole leathers.

BuffingBuffing is done to remove unwanted extra flesh sticking to the leather. This needsto be done without damaging the grains and also without imparting any marks on them.

FinishingColour penetration in dyeing process will happen only to an extent of 60-70% ofthe required level. Hence Auto spray machines are used the complete the colouring process.

They are feeded with colour mixed with wax, binders etc and the same is sprayed using theguns inside the machine while the leather is moved into the machine using the conveyors. The

whole process can be observed through glass windows in the machine. Dryers are attached tothe machine, while the conveyors take the leather into the dryer making it as a continuous

process. Finishing touches are then given to the leather with an objective to cover up the

defects in the leather and also to print design on them.

The leather can be polished using the polishing machine.

Glazing machines with special glass at the end can be used to rub on the surface of

the leather to bring out the gloss.

Press machines to print design on the leather using the design frames can also be

used.

Page 21 of 45Press machines to print design on the leather using the design frames can also be

used.


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Manufactur ing process and support functions

CuttingCutting, also known as clicking, involves trimming and shaping leather or fabric

sections for the upper, marking sections to indicate where to put stitches and working aroundflaws in the raw material that may spoil the finished appearance. Clicking is carried out to cut

different components of footwear or leather goods as per the approved design or size. Whileclicking, it is essential to click the right component from the right area of the leather.Defective portion of leather should be carefully clicked so that the defective portion does not

spoil the appearance of the finished product. Lining material is also clicked in this section.Clicking can be carried out mechanically using clicking press and also manually using

clicking knives. It is the most important process in garment manufacturing. This is a veryskilled job because leather is expensive hence waste must be kept to a minimum.After cutting, certain additional activities may be undertaken. These include skiving (reducingthe thickness of a certain edge of leather with the help of skiving machine/skiving knife toallow seams to be produced without the bulkiness), punching and eyeleting either by machine

or by hand tools (in the case of footwear mainly to punch holes and to fix eyelets for insertingshoe laces and in the case of leather goods for decoration purpose) and perforating (to givethe finished article a pleasing look as well as cover certain defects).


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Stitching/ClosingClosing involves putting together all the different components tocomplete the upper section in case of footwear and complete the product in case of garmentsand other products. Closing is done by stitching by using mainly a semi-automated sewing machine, and

pasting. In few cases of specially designed articles, closing is carried out onlyby pasting. Pasting is generally done with synthetic adhesives. Various edge treatments arealso done to the leather to produce a more attractive look. In the case of footwear, at this stagethe eyelets are inserted to accommodate the laces in the finished shoes. Closing is consideredto be the most complicated process in the manufacture of leather gloves and needs to be

carried out as efficiently as possible

LastingThis operation is carried out only for footwear. In this operation two-dimensional

leather is given a three dimensional shape to fit the shape of the foot and to retain this shapefor rest of life of the shoe. This stage is known as lasting because operatives mould andshape the uppers into the finished form on a wooden or metal pattern called a 'last'. Thereafter

the soles are attached either by stitching, or with adhesive. Soles can also be directly attached

to the upper either by injection moulding or by direct moulding processes.

FinishingThis is the most critical stage of production as it covers the defects that might

have occurred during the production process. In case of footwear heels are attached and thesoles and heels are trimmed to shape, the sole, heel and edges stained and the shoe is waxed

and buffed.

Supply chain

. It regards the various components of the Aysha Sabeel leather industry as stages in a supply chain, from

animal husbandry through to the production and marketing of leather and leatherproducts. The value of this perspective is that it provides an integrated approach to theanalysis of problems throughout the industry. It supports the generation of solutions inspecific components that will positively impact other components, and of solutions in the chain as a wholethat are most cost and resource effective.

Finance

Aysha Sabeel Leathers was formed with the help of Director s own capital and

resources , however the company borrowed funds from SBI Bank when the capital

was scarce .


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Insurance

Company is tied up with national insurance. It offers dual benefits-

protection for any damages in the factory and complete peace of mind.

Production management

Theleathermakingprocessis in general restricted tobatchprocessing, but if the surface coatingsub-process is added then some continuous processing can be included. Theoperationflow has

to follow the preparatory tanning crusting surface coating sub-process order without

deviation, but some of the sub-processes can be omitted to make certain leathers (or partiallytanned/ untanned products).

Leadership Style

This includes the leadership style from management head and the overall operating

style of the organization. Style impacts the norms people follow and how theywork and interact with each other and with customer. Autocraticleadership style isfollowed in Aysha Sabeel Leathers

Wages and salary system

The employees get adequate and equitable remuneration for the work done by

them. In Aysha Sabeel Leathers the jobs are evaluated and based on this salary to

be paid is determined. Salary is paid to the employees in the first week of the every

month and few unskilled are paid in wage.
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Induction of new labor

A new labor is assigned to work under a jobber. During the first few months is

under no pressure to reach targets as other employees. His work will be monitored

by the jobber and all his activities will be under the supervision of the jobber. The

employee is given training for first 3-5 months. On- the- job training is only given

only to new employees the training given includes how to operate the machine,

how to clean the machine, how to use the raw material etc.

Employee attendance

Attendance is one of the most important tools of evaluation of an employee. Tech

The employee attendance is maintained manually in a register. Whenever the

employee enters the organization, he needs to enter the name, date, time of

entrance, signature etc in a register that is maintained at the office as well as punch

card machine is used where employees need to punch the card while coming and

going from the organization. At the end of every month the number of days

attended by the employee will be assessed and the salary is calculated accordingly.

Why there is a need for TRAINIG AND DEVOLOPMENT in any

Organization:-


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Organization viability and the transformation process

The primary concern of an Organization is its viability and hence its efficiency

.There is a continuous environmental pressure for efficiency ,and if anOrganization does not response to this pressure ,it may find itself rapidly losing

whatever share of market it has .Employee ,training therefore imparts specific

skills and knowledge to employees in order that they contribute to the

Organizations efficiency ,and be able to cope with the pressures of the changing

environment .

Technological advances

There has been tremendous development in industrial technology. Mechanization

and automation of the plant is necessary for the organizations survival; hence, it

has to train its employees for more skilled positions. New skills are required to

operate new machinery, or familiarity with new processes and production

techniques has to be introduced.

Organizational Complexity

With increasing mechanization, automation and development in technology,many

organizations have emerged as complex organizations that produce a wide range

of products or offer a wide range of services. This had led to complex problems of

coordination and integration of activities. Eventually the need for training

and retraining is felt at the all levels in such organizations.

Human Relations

The growing complexity of organizations has led to various human problems, like

alienation, inter-personal and inter -group problems. Hence, training in


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human relations is becoming extremely important for tackling these problems.

Due to its great relevance in the current automated, mechanized and extremely

competitive business environment, where skills are becoming obsolete faster than

ever, we have chosen to study in detail the training and development needs of

employees.

Chapter-5 : Findings & Conclusions

1 Findings

Employees Co-operation with the staff was found to be good.


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Working atmosphere of organization is very good.

The employees are getting attractive bonus, salary, wages and other

benefits.

There is high concern towards the environment, quality and safety

measures.

The employees are trained into various categories such as management

development program, adoption to modern machineries, technical skills,

safety program, etc.

There is a close interaction between management and workers

Conclusion

Aysha Sabeel Leathers is one of the manufacturers of Leather in Tamil Nadu..

As demand for Leather products are increasing; there is a vast scope for

promotion for their export from India. With this regard, vigorous promotional

measures have to be undertaken for exploring new markets and to consolidate

gains in the existing markets.

The markets that offer great potential growth are USA, European countries, Russia,

Latin American countries, Middle East countries, Japan, South Korea and Canada.


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As a whole; there is a good export potential for leather products. However, its

future depends greatly on technological diversification, as well as aggressive

marketing promotions.

Recommendations

The workers should be motivated for continuous presence through

counseling.

The Manager and other staff of the company should be given training and

development to enhance their skills and update knowledge.

Training should be given keeping in view of changing trend in human

resource management and production technology.

Good incentive should be given for the workers who take minimum number

of holidays.

Company should recruit skilled labors to maintain productivity.


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organization study on leather

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