Munich Personal RePEc Archive

Feasibility of a Leather Manufacturing Unit

-, Yaman (2023): Feasibility of a Leather Manufacturing Unit.

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The leather garment manufacturing sector is one of the fast developing industries of Pakistan and there are high hopes that this industry will be growing further. According to an estimate by the board of investment, the requirement for investment in the industry ranges US $175 to US $370 million. Being a major foreign exchange earner leather and leather products are known and recognized all over the world because of its fine and durable quality. This industry is too profitable that it has become the focus of many educational institutions where different kinds of skills and techniques are taught to create a competitive edge in the international market of leather goods. The skill developed by these educational institutions are utilizes to the maximum because this industry is highly labor intensive and skilled labor can bring even more earnings as foreign exchange. One of the main reasons for success and growth of this industry is the fact that raw hides and skins are available in abundance and it is exported in the form of leather products and value added leather goods which include items like leather jacket, gloves and sporting goods. The local market for leather is limited to roughly 10% because of the climatic conditions of our region the weather here is too hot and humid to wear leather garments. This industry is highly export oriented and about 90% of total production is exported to foreign markets. Being an established market a lot of emphasis is given on quality of the product and it is ensured that sophisticated and trendy design are made to capitalize the full potential of foreign market Also great important is given to ensure that all toxic chemical waste is disposed off properly because it can highly hamper the environment. In this report I have analyzed the feasibility of investing in the leather sector particularly leather garment manufacturing sector. I have covered the varies aspect of the amount of investment required the growth potential of this market and the skills required to bring out quality leather products

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