Industry

Leather and Footwear

Ranipet, Vellore, Ambur and Vaniyambadi tan hides, finish leather and make footwear, much of it for export.

Profit depends on how much saleable leather each hide gives, and on work passed between tanneries and footwear units.
It also depends on money that comes back months after it goes out.

Where money usually leaks

Which of these happen in your business?

Ten seconds. Nothing is sent unless you choose to send it.

A hide is bought by weight or by piece and sold by area. The margin is decided by how much of it reaches the finished grade.Hides go out for tanning or finishing, and uppers for stitching. Each movement needs a rate that covers its real cost, and a record of where the material is.In footwear, two styles at the same price can leave very different margins.Leather is bought months before the buyer pays, and the price is fixed in a foreign currency.

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Tick any that apply.

1 Where money leaks 2 The rules for this industry 3 What we do about it

What we check for you

We measure yield from raw or wet blue to finished area, lot by lot.
We compare wastage with a standard, by lot and by grade, and chemical consumption with the recipe.
We work out conversion cost per process, as a basis for job-work rates.
We track material sent to job workers, received back and still lying with them.
We cost each article per pair: upper leather, soles, components, lasting, finishing and rejects.
We cost export orders with duty drawback and RoDTEP (Remission of Duties and Taxes on Exported Products) credits counted in, and plan cash for the cycle.

The rules for this industry, in detail →

Our promise

We work from your own records, and we show you how each figure was worked out.