{"id":36081,"date":"2021-10-01T14:29:55","date_gmt":"2021-10-01T08:59:55","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=36081"},"modified":"2022-02-26T10:48:52","modified_gmt":"2022-02-26T05:18:52","slug":"setup-tannery-business-processing-unit-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/setup-tannery-business-processing-unit-in-india\/","title":{"rendered":"How to Setup Tannery Business (Processing Unit) in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Establishing a tannery processing facility\nis a profitable business in India. Here in this write-up, we aim to render a\ncomprehensive tannery business plan to the startups willing to make their mark\nin the leather sector.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/setup-tannery-business-processing-unit-in-india\/#What_is_tannery\" >What is tannery?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/setup-tannery-business-processing-unit-in-india\/#An_Insight_on_the_Tannery_Market_Potential\" >An Insight on the Tannery Market Potential<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/setup-tannery-business-processing-unit-in-india\/#Legal_Compliances_for_Tannery_Business\" >Legal Compliances for Tannery Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/setup-tannery-business-processing-unit-in-india\/#GST_Registration\" >GST Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/setup-tannery-business-processing-unit-in-india\/#Setup_Machinery_for_the_Tannery_Production_Unit\" >Setup &amp; Machinery for the Tannery Production Unit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/setup-tannery-business-processing-unit-in-india\/#Typical_Equipment_used_in_the_Tannery_Business_processing_unit\" >Typical Equipment used in the Tannery Business (processing\nunit)&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/setup-tannery-business-processing-unit-in-india\/#Process_Relating_to_the_Finished_Leather_Manufacturing_Technology\" >Process Relating to the Finished Leather Manufacturing\nTechnology<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/setup-tannery-business-processing-unit-in-india\/#Raw_Materials_used_for_running_Tannery_business_processing_unit\" >Raw Materials used for running Tannery business processing\nunit&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/setup-tannery-business-processing-unit-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_tannery\"><\/span>What is tannery? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A tannery refers to a skin processing\nfacility that produces high-quality leather, which the leather products\nmanufacturing companies further utilise. Moreover, leather tanning is one of\nthe oldest form industries in India.&nbsp;<\/p>\n\n\n\n<p>The livestock industry in our nation adheres\nto immense potential. That is the reason why hide and skins are available in\nample volume here. And hide and skins is the primary product of the meat\nprocessing facility.&nbsp;<\/p>\n\n\n\n<p>Smaller animals are said to have skins\n(sheepskin, goatskin) &amp; large animals are said to have hides (buffalo hide,\ncowhide). State likes WB, Punjab, Tamil Nadu, UP, UP, Karnataka are the leading\nleather producing states in India.&nbsp;<\/p>\n\n\n\n<p>Most of the world\u2019s leather is produced from\ngoatskin, cattle hides, &amp; sheepskins. Hides &amp; skins encounter an array\nof processing phases before turning into final products.&nbsp;<\/p>\n\n\n\n<p>As per your investment potential &amp; the raw material availability, you can get started with the tannery business unit anywhere in the country.<\/p>\n\n\n\n<div class=\"mt-3 mb-3 embed-responsive embed-responsive-16by9\"><\/div>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/process-of-startup-india-registration-online\/\">Process of Startup India Registration: A Step by Step Guide <\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_Insight_on_the_Tannery_Market_Potential\"><\/span>An Insight on the Tannery Market Potential<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Typically, the growth of the\ntannery business is somewhat proportional to the market demand for the finished\nleather. And the demand pertaining to the finished leather is rising not only\nin the local market but also in the overseas market. India holds a batch of\nprominent leather exporters in the world. The primary exporting nations for\nIndian Finished Leather are Spain, Germany, China, Italy, the USA, and\nKorea.&nbsp;<\/li><li>Moreover, there are various\nparameters for stimulating the growth of the industry. The availability of a\ncost-effective workforce and the presence of good quality skins and hides are\nthe fundamental reason for the comprehensive development of the leather\nindustry.&nbsp;<\/li><li>Moreover, the advent of the\nchrome tanning process and the technical aid from the Central Leather Research\nInstitute are stimulating the growth.&nbsp;<\/li><li>The worldwide demand for\nleather items continue to rise every passing day. Additionally, there are\nvarious Government-backed schemes for assisting the entrepreneur in the leather\nindustry. Such schemes aim to help businesses in terms of marketing, export and\nlicensing.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Legal_Compliances_for_Tannery_Business\"><\/span>Legal Compliances for Tannery Business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Tannery business seeks different types of\nlicenses and permits from the Government authority. But, it also depends on the\ntype of operation. It is recommended to concern with a small business expert\nbefore venturing into this domain. Here, we mention some of the fundamental\nrequirements.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Firm incorporation<\/h3>\n\n\n\n<p>The first and the foremost requirement are\nto determine the form of your firm &amp; register the business. It is\nrecommended to start a tannery business as one of the following business forms:<\/p>\n\n\n\n<ul><li><strong><em>OPC (One Person Company)\n(Govern by Company Act, 2013)<\/em><\/strong><\/li><li><strong><em>Private Limited Company\n(Govern by Company Act, 2013)<\/em><\/strong><\/li><li><strong><em>Limited Liability\nPartnership (Govern by LLP Act, 2008)<\/em><\/strong><\/li><li><strong><em>Partnership Firm (Govern by\nPartnership Act, 1932)<\/em><\/strong><\/li><\/ul>\n\n\n\n<p>All of these business forms revolve around a different set of provisions and bylaws when it comes to incorporation. Presently, the <em><strong>Ministry of Corporate Affairs<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Ministry_of_Corporate_Affairs\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> and ROFs serve as a centralised authority that grants incorporation certificates.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Factory License&nbsp;<\/h3>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/factory-license\"><strong>Factory license<\/strong><\/a> is granted by the Labour authority of the concerned state against a duly filed application and a standard fee.&nbsp;<\/p>\n\n\n\n<p>While applying online, the applicant must\nsubmit the following documentation for validation purposes.&nbsp;<\/p>\n\n\n\n<ul><li><strong><em>Firm registration List of\nPartners\/Directors<\/em><\/strong><\/li><li><strong><em>List of Employees&nbsp;<\/em><\/strong><\/li><li><strong><em>List of machinery&nbsp;<\/em><\/strong><\/li><li><strong><em>Address proof of the\nestablishment&nbsp;<\/em><\/strong><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Consent from the State Pollution Control Board<\/h3>\n\n\n\n<p>Leather processing unit generally emits solid and liquid waste in a considerable amount. Hence, such entities cannot perform their undertaking without a legal permit granted by the State Pollution Control Board. The leather processing unit must have an Effluent Treatment Plant to reduce pollution as per the guidelines of the SPCB.&nbsp;<\/p>\n\n\n\n<p>The application for the same can be filed on\nthe local authority website accompanied by the following documents;&nbsp;<\/p>\n\n\n\n<ul><li><strong><em>List of machinery (along\nwith the power output and rating)&nbsp;<\/em><\/strong><\/li><li><strong><em>Availability of DG (power\noutput and rating)<\/em><\/strong><\/li><li><strong><em>Floor plan sanctioned by\nthe relevant personals and authorities<\/em><\/strong><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Authorization under  Hazardous And Other Wastes (Management and Transboundary Movement) Rules, 2015 <\/h3>\n\n\n\n<p>Tannery business emits considerable amount  of pollutant into the environment in the form in solid, liquid, and gases. Therefore, these entities are mandated to acquire authorization under the said rules via prescribed application from the competent state authority. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_Registration\"><\/span>GST Registration <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a><strong> is a mandate in the following conditions:&nbsp;<\/strong><\/em><\/p>\n\n\n\n<ul><li>If the business generates an\nannual revenue of more than Rs 40 lakh (Rs20 lakhs for entities in the hilly\nand NE region).<\/li><li>If the business conducts\ninter-state transactions of goods and services&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Setup_Machinery_for_the_Tannery_Production_Unit\"><\/span>Setup &amp; Machinery for the Tannery Production Unit <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Location selection is the\nprimary factor in establishing up a tannery processing facility. It is\nrecommended to commence the tannery business in an industrial zone. If you set\nup the facility in the domestic area, you probably come across some objections\nfrom nearby residents. Typically, one can establish a small scale tannery in an\narea of 5000 Sq Ft. Moreover, you must have an additional open sky area within\nthe facility.&nbsp;<\/li><li>While choosing the space,\ndetermine the viability of transportation and skilled labourers. Additionally,\nwater &amp; electricity sources are the primary concern in setting up the\nleather processing facility. Also, arranging a groundwater supply is another\nessential requirement for establishing such a plant.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Typical_Equipment_used_in_the_Tannery_Business_processing_unit\"><\/span>Typical Equipment used in the Tannery Business (processing\nunit)&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can commence a tannery processing facility in two ways. One is semi-automatic &amp; the other is fully automated. But, it is advisable to set up a facility on a fully automatic basis. Make sure the procure machinery from a trusted machinery manufacturer. Here we mention a list of some fundamental equipment that propels the tannery processing plant.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"998\" height=\"981\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/10\/Typical-Equipment-used-in-the-Tannery-Business-processing-unit-1.png\" alt=\"Typical Equipment used in the Tannery Business (processing unit) \" class=\"wp-image-36089\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/10\/Typical-Equipment-used-in-the-Tannery-Business-processing-unit-1.png 998w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/10\/Typical-Equipment-used-in-the-Tannery-Business-processing-unit-1-300x295.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/10\/Typical-Equipment-used-in-the-Tannery-Business-processing-unit-1-768x755.png 768w\" sizes=\"(max-width: 998px) 100vw, 998px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_Relating_to_the_Finished_Leather_Manufacturing_Technology\"><\/span>Process Relating to the Finished Leather Manufacturing\nTechnology<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Step I: Procure skins from reliable sources.&nbsp;<\/em><\/strong><\/p>\n\n\n\n<p>First of all, you need to arrange the wet\nblue skins from reliable sources. But you can also arrange raw skins and hides.\nAfter the procurement of the said items, you have to classify the skin.&nbsp;<\/p>\n\n\n\n<p><strong><em>Step II: Re-tanning<\/em><\/strong><\/p>\n\n\n\n<p>This entails re-treatment of the wet-blue\nskins.&nbsp;<\/p>\n\n\n\n<p><strong><em>Step III: Pre-finishing&nbsp;<\/em><\/strong><\/p>\n\n\n\n<p>In this phase, skins are \u201chorsed up\u201d, dyed,\nstretched, dried out via hot air, and finally ironed.&nbsp;<\/p>\n\n\n\n<p><strong><em>&nbsp;Step IV: Finishing:<\/em><\/strong><\/p>\n\n\n\n<p>This phase entails classification &amp;\ncutting, spraying &amp; final conditioning. It includes buffing, staking, &amp;\nmilling. The final operations are executed dry.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Raw_Materials_used_for_running_Tannery_business_processing_unit\"><\/span>Raw Materials used for running Tannery business processing\nunit&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The primary raw material required to run a\ntannery processing unit is Wet blue hides. Apart from that, you have to procure\nSodium bicarbonate, Lacquer emulsions, Formaldehyde, Sodium acetate, and Dyes\n(different colours).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In the purview of the past and recent trends, the tannery business (processing unit) will continue to experience positive push owing to massive domestic demand. Although the tannery production business seeks considerable investment, it can act as a stable source of revenue for the business owners for years to come.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/benefits-of-startup-india-registration-in-india\/\">Benefits of Startup India Registration in India <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Establishing a tannery processing facility is a profitable business in India. Here in this write-up, we aim to render a comprehensive tannery business plan to the startups willing to make their mark in the leather sector.&nbsp; What is tannery? A tannery refers to a skin processing facility that produces high-quality leather, which the leather products [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":36087,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[968],"tags":[1978],"acf":{"service_id":"250"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":7818,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/36081"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=36081"}],"version-history":[{"count":20,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/36081\/revisions"}],"predecessor-version":[{"id":40573,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/36081\/revisions\/40573"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/36087"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=36081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=36081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=36081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}