Most Profitable Leather Business Ideas In 2021

Most Profitable Leather Business Ideas In 2021

The leather industry occupies a place of notability in the economy of most countries. The demand for the leather goods industry has grown with customer demands for new designs and creative fashionable leather products. Due to the huge potential for employment, growth, and exports, the demand for the leather business is growing rapidly. According to IBEF, The Indian leather industry accounts for around 12.93 % of the world’s leather production. The leather industry is spread across different segments namely tanning and finishing, footwear and footwear components, leather garments, leather goods including harness, etc. Leather business ideas can be developed as a profitable venture on a small and medium scale basis as well.

Facts about the Leather Industry in India
Strengths of Indian leather Sector
Most Profitable Leather Business Ideas


Profitable leather business with low investment

Facts about the Leather Industry in India

According to the Department for Promotion of Industry and Internal Trade (DPIIT), India's leather industry has attracted $ 215.21 million in foreign direct investment equity inflows from April 2000 to March 2021.

If the question on your mind is, "Is the leather business profitable?", here are some facts about the industry to help you decide:

  • Footwear export accounts for a 45.82% share. India has produced 1.8 billion units and is expected to produce 3 billion units by 2024.
  • India’s total leather export stood at US$ 5.07 billion in 2019-20. From April 2019 to March 2020.
  • The tanning industry accounts for an annual production of about 3 billion sq. ft.
  • India is the second-largest exporter of leather garments, third-largest exporter of Saddlery & Harness in the world and 4th largest exporter of Leather Goods in the world.

The global leather goods market size has reached USD 407.92 billion in 2021. Total leather and leather products exported from India stood at US$ 5.07 billion in 2019-20. India shares 9% of the world’s footwear production. India is the second-largest footwear producer after China. India is also the second-largest consumer of footwear after China. This article will help you in finding out the most trending leather business opportunities.

Share of Leather Products (2020-21)
Share of Leather Products (2020-21)

Strengths of Indian leather Sector

  • Own raw material source – About 3 billion sq ft of leather produced annually
  • Some varieties of goat/calf/sheep skins command premium position
  • Strong and eco-sustainable tanning base
  • Modernized manufacturing units
  • Trained / skilled manpower at competitive wage levels
  • World-class institutional support for Design & Product Development, HRD and R & D.
  • Presence of support industries like leather chemicals and finishing auxiliaries
  • Presence in major markets – Long Europe experience
  • Strategic location in the Asian landmass

Most Profitable Leather Business Ideas

Leather Watch Band Making

The leather watchband is considered especially as a B2B product. It takes around 45-60 mins to complete each strap depending on the level of expertise and comfort of working with leather. If you care for your leather strap watch carefully, it is likely to last longer and maintain its value.

The main things you will need to start making leather watch bands are :

  • Leather
  • Cutting mat
  • Cutting tool
  • Cutting edge
  • Leather punch
  • Needle
  • Suitable thread
  • Watch hardware (buckle and spring bars)

Leather Garment Making

Fashion consumers are becoming more conscious of the environment. Consumers are rapidly aligning towards new designs and innovative leather offerings to ensure they are in sync with challenging fashion trends. Leather manufactures are trying to produce more sustainable products by prohibiting harmful dyes and chemicals.

They prefer the following facilities before starting a leather garment:

  • Eco-friendly material
  • Conservative use of resources
  • Reduced emission pollutants
  • Greater social commitment
  • Fair treatment of employees

Leather Bag Making

The leatherback making business can be started with little capital and from home. Once the bag has been completed it is given a coat of mustard seed oil, which helps nourish the leather, helps waterproof it, and further deepens the rich tan color. You can come up with a variety of designs that you can get into manufacturing or retailing.

Basic leatherworking tools and materials are as follows:

  • Some 2mm veg-tan leather
  • Swivel knife
  • Stamp tools
  • Quality 2mm lacing
  • Linen
  • Lacing needles
  • Leather dyes
  • Hardware(rivets, buckles, keepers, and a closure)
  • Contact adhesive

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Leather Shoe Making

Ladies footwear is an essential item in women’s apparel. The variety includes slippers, sandals, sports shoes, high-heels, etc. You can start a ladies' footwear manufacturing business from home. By finished leather as raw material, any individual can initiate this business on small scale basis.

The first thing you need to start this process is a shoe last. The leather shoe making business is involved in several activities. It is very much important to have adequate knowledge about the process and the current market trend. Today shoe factories handle the various stages of production.

The steps which are involved in shoemaking are below:

  • Designing
  • Shoe lasts
  • Stamping
  • Sewing
  • Assembling
  • Shoe room

Leather Crafts Item Making

India is famous for its leather products and the most profitable leather crafts are manufactured in West Bengal. These products are generally decorated with traditional designs and patterns. The modern-day leather craft in India has become a big industry. Items like shoes, jackets, lampshades, pouches, bags, belts, wallets, stuffed toys, book covers with decoration, ladies’ accessories, hair accessories, wall hanging, clutch or purse, pet collars, key chains, etc. made from leather are exported from India in large quantity. Different regions in India are famous for their unique style and pattern of leather products.

Leather Furniture Making

Leather furniture at a retail store may be out of your price range. With little hard work, you could have custom leather furniture in your home for a fraction of the cost. There are two options for your leather furniture from scratch and reupholstering your existing furniture. Two major segments include this industry. One is the sofa and other furniture or home décor items for domestic purposes. Another is seat or seat covers in the automobile industry. This is an excellent leather business opportunity!

Leather Promotional Product Making

Promotional products are branded with a specific logo that serves the purposes of marketing campaigns. These products are customized for the company especially and have their logo on them. Day by day marketing strategies are improved, the use of promotional products is a new thing now that is expanding rapidly. Some products which are significantly popular in the promotional gift are laptop sleeves, keychains, keyrings, leather portfolios, leather bags, leather briefcases, leather sunglasses cases, leather wallets, leather purses, etc.

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Leather Jewelry Making

Leather is always a stylish choice for designs in jewellery. Jewellery making is another business idea. As leather is already a very pretty popular material in itself and it also makes some awesome jewellery items. Leather jewellery items such as necklaces, bracelets, bangles, earrings, friendship bands, wrapping bracelets, and bangles, etc.

Leather Safety-Shoe Making

Leather is certainly the most important material involved in the production process of safety footwear. Safety shoes are shoes that are made for the safety of the individual that works in extreme conditions.

Types of leather in safety footwear:

  • Full-grain leather - It is part of the most outer layer of the skin, the most elastic and breathable of all.
  • Printed leather - It is the middle layer of the skin. It’s very sturdy but less breathable.
  • Nubuck leather - It is the most outer layer of the skin, slightly brushed and with moderate resistance to scratches and hits.
  • Suede leather - It is part of the middle layer of the skin. It has the best durability and the least water resistance.

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Leather Winterwear

Leather winter wear is the biggest industry. People using leather as jackets is very popular. Various winter wear options are famous in the leather business industry such as jackets, coats, leather high boots, leather pants, etc. Leather gloves have also done significant progress as a business plan. Leather gloves are famous among both men and women and come in different shapes and sizes. There are various types of gloves such as biker gloves for gripping, winter gloves, open finger gloves, closed finger gloves.


The Government of India had identified the Leather Sector as a Focus Sector under the Make in India’ program. The Government is implementing Various Special Focus on Initiatives under the Foreign Trade Policy for the growth of the leather sector. With the past industry performance, the industry’s inherent strengths of skilled manpower, innovative technology, increasing industries, the Indian leather industry increases its production. And if you start this leather business you will get more profit also in the upcoming days the growth in the leather industry will be very much.

We hope this article helped you to get ideas on how to start a leather business in India! Remember, there are several leather-based small scale industries out there too!

Also read: List of Government Schemes To Support Startups


What are the most profitable leather business ideas?

Some of the Most Profitable Leather Business Ideas are:

  • Leather Footwear Manufacturing
  • Leather Bag Making
  • Leather Furniture Making
  • Leather Crafts Item Making
  • Leather Watch Band Making
  • Leather Garment Making
  • Leather Gloves & Mittens Making
  • Leather Export Business

Is leather a good business?

Leather is a durable product and looks stylish. This makes leather business capable of remaining functional and upmarket for many years.

What are the top leather manufacturing companies in India?

Some of the Top Leather Manufacturing Companies in India are:

  • Farida Group
  • Lakhani Armaan Group
  • Liberty Shoes Ltd.
  • Metro Brands Ltd.
  • Mirza International Ltd. ( Red Tape)
  • Relaxo Footwears Ltd.

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