Call Us


Welcome to Corpseed. Please type your query, and we shall provide immediate assistance.


How To Start A Business In Manufacturing Leather Bags In India


Overview: Leather Bags Manufacturing Business

Leather Bags come in a variety of styles and brands with each passing year. People who are passionate about fashion design continue to provide consumers with innovative and appealing ideas. When it comes to a small Leather Bag manufacturing firm, the startup costs are modest, and the raw materials needed to continue the manufacturing process are readily available, as most of them are synthetic. This is only one of the many advantages of beginning a small leather bag manufacturing business.

--------------Blog Contact Form-------------

The first and most important step in beginning a new business is to have a thorough understanding of the sector you are entering. When it comes to leather bags, there is a vast range of diversity and designs that organizations can explore. They include laptop bags, handbags, purses, wallets, and other accessories, giving them a wider variety of visibility and potential business.

Having the statistics in your head increases your motivation to get your business up and running straight away. The market for leather or apparel accessories is worth more than 41 million dollars. This clearly demonstrates the scale and potential of this industry; we are only talking and examining a small portion of this area, which accounts for a significant portion of sales and profits.

People's demand for leather things, as well as the artistic work and design that goes into them, creates a significant market. Leather bags or other leather items, according to reports, also meet international market demands by being exported to numerous other countries. Let us delve deeper into all of the specifics surrounding the leather bag manufacturing industry.

License Required for Leather Bags Making Business 

  • GST Registration: GST stands for goods and services tax, and it was implemented on July 1, 2017 in India, replacing approximately 15 additional cascading taxes imposed by the Central and State governments. Goods and services are taxed at varying rates under GST, depending on the categories established by the Indian government. 0 percent, 5%, 12%, 17%, 18%, and 28% are the various tax slabs. Rough precious and semi-precious stones are taxed at a special rate of 0.25 percent, while gold is taxed at 3%. In addition, a 22 percent CESS on top of a 28 percent CESS Aerated drinks, luxury autos, and tobacco goods are all subject to GST. GST replaced other indirect taxes, reshaping the country's 2.274 trillion-dollar economy considerably. GST registration is required for all enterprises doing business in India, whether they are purchasing, selling, or delivering services.
  • Firm Registration: Incorporating your company is the first step in making it a legal entity in India. This not only delivers a flood of advantages, but also ensures that you are shielded against future legal issues. Furthermore, choosing the business structure to register as is the most important stage in incorporating your company. Due to the advantages it provides, partnership business registration has grown in popularity in recent years. In addition, a partnership firm in Delhi is appropriate for organizations with fewer founders or owners.
  • Trade License: A trade license is a certificate or document that authorizes a corporation to conduct business or trade within the municipal limits for which it is issued. The Municipal Corporation of Delhi (MCD) issues Commercial Licenses to traders and companies in Delhi to monitor and control various trade operations at the city level. The purpose, procedure, and paperwork required for getting a Delhi trade license are discussed in this article.
  • Current Account: Setting up a bank account is one of the most crucial activities you must complete when beginning a business. It's critical that you maintain your company and personal banking operations distinct. Having a current account for your business allows you to keep track of all of your expenses while also making the taxation process easier.
  • IEC Code: The Directorate General of Foreign Trade (DGFT) issues a 10-digit unique number to a corporate entity for the purpose of import and export in India. The Import and Export Code assists the company in expanding its global market. Before beginning the import of products, the trader must check that the importing entity has an IE code and is registered for GST. If an importer does not have both an IE code and a GST registration, the products will be delayed at the port, resulting in demurrage charges or the possibility of destruction. The IE Code is valid for the duration of the entity's existence and does not need to be renewed.
  • Trade Mark: It takes a lot of time, effort, and money to build a brand. As a result, you must ensure that you have the legal right to use your brand's logo, motto, product shape and packaging, sound, aroma, color combinations, and everything else that distinguishes it. A trademark is a sort of intellectual property that distinguishes your product or service from those of your competitors. The Trademark Act of 1999 in India allows you to register a trademark. It gives the registered mark's owner exclusive ownership rights and prevents others from using the mark, favoring the mark's owner.

Investment required For Leather Bag Making Business

Although the raw materials needed to make Leather Bags are readily available, this reduces your investment costs in this industry to some extent. However, the majority of it will be determined by the types of creative and aesthetic work you intend to do. The following is an estimate of the required investment.

Profits that can be Expected from a Small Leather Bag Manufacturing Firm

Individuals in the Leather Bag Making industry can expect to make anywhere from 50,000 to 1.2 lakhs in profit, based on the demand that has been established, the market that has been acquired, and the brand value that has been developed by your firm.

Raw Materials Required for Leather Making Business     

  • Cloth 
  • Silk Lining Cloth 
  • Tanned Goat leather 
  • Threads 
  • Popline Lining Cloth  
  • Decorative 
  • Adhesives 
  • Zip, buttons  
  • Other Synthetic materials 

Equipment Required 

The majority of your investment would go toward purchasing the various types of machines required to manufacture leather bags. However, depending on the different sorts of bags, you'll need one of the machines listed below.

  • Skiving Machine 
  • Cutting Machine 
  • Snap Button 
  • Hook Attach machine 
  • Die cutting Machine 
  • Mini Compressor 
  • Ball Press machine  
  • Board Cutting Machine 
  • Zinc Bloc  
  • Miscellaneous Equipment

Manpower Required 

The amount of manpower required for a leather bag manufacturing business will vary based on the products you produce. Manufacturing many products at the same time necessitates even more labour than is required.

  • Two skilled workers, a manager, and, if you don't know much about design, a design controller are all you'll need to start a small-scale Leather Bag manufacturing business.
  • Three to four skilled workers, a manager, and a design handler or controller are necessary for a medium or large-scale Leather bag manufacturing business. Again, the quantity of people needed will vary depending on the amount of products you're producing.

Target Consumers 

  • Gift shops: This is a key location where your handcrafted leather bags, wallets, and purses will be sold in large quantities. These items are frequently purchased as gifts from a variety of gift shops. Once you've become familiar with the proprietors of gift shops, they can become regular customers.
  • Stores in Malls: Some malls have small or large boutiques that sell leather products with distinctive and unusual designs. The sales you make in these stores may be infrequent, but the profit margins will be substantial. To have your leather products displayed here, you would need to build some brand value.
  • Local Bag stores: You can tie up or approach all of the neighbourhood establishments that specialise in bags and leather-related items. Once again, they would be more likely to agree if your product's designs are appealing to customers.
  • Exhibitions: You can exhibit your new line of brands at trade shows. Exhibitions are a fantastic place for a new brand to start because they allow you to show off your whole product line while also attracting some first customers.
  • Boutiques and Fashion Stores: Finally, local or regional boutiques and fashion retailers should be one of your main focuses. For a good commission rate, they will promote and sell your product in their stores. All you have to do now is make an impression on them and instil confidence in your goods.

Profit Margin in Leather Bags Market

The profit margin in the Leather Bag Manufacturing business varies depending on the sort of bag you're making and selling. However, if you consider a typical Leather bag, you may easily anticipate generating a profit margin or percentage in the range of 20% to 35%. Depending on the product, the figures may differ.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.


Get help from an experienced legal adviser. Schedule your consultation at a time that works for you and it's absolutely FREE.


I have worked for many internet blog pages and news portals. currently, I am working as a content writer for Corpseed Pvt. Ltd. I like to write blogs and articles in the field of different services.

Learn More >>