INDUSTRIAL VISIT REPORT

Vidyasagar University

REPORT SUBMITTED BY

BIDISHA DAS

ROLL NO: PG/VUOAP01/MBA-IS/147

BENGAL INSTITUTE OF BUSINESS STUDIES

COMPANY VISITED: BANTALA LEATHER INDUSTRY

THIS REPORT IS SUBMITTED FOR THE PARTIAL FULFILMENT OF MASTERS OF

BUSINESS ADMINISTRATION FROM VIDYASAGAR UNIVERSITY
 CONTENTS

TOPIC PAGE

OBJECTIVE OF INDUSTRY VISIT 4

INTRODUCTION 5-9

COMPANY PROFILE 10

KEY PRODUCT OF THE COMPANY 10

MAIN COMPETITORS OF THE COMPANY 11

12-15
ACTIVITIES IN THE COMPANY ON THE
DAY OF THE VISIT

ANALYSIS OF THE MARKETING OF THE 16

COMPANY

OVERALL LEARNING FROM VISIT 17

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SOURCE

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 VISITED TO THE BANTALA LEATHERS TANNERY

“CHANG HING TANNERY”

(CLC ZONE -5 PLOT 396)

ON 8TH NOVEMBER 2022

Our institute (BIBS) organized an industry visit for us (PGPIBM-224)

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 OBJECTIVE OF INDUSTRY VISIT

1. Importance of west management.

2. How they complying social obligations because it related with animal.

3. Authorized way to procuring animal skin

4. Raw skin preserving technique.

5. Article segregation

6. Division of integrated departments.

7. Equilibrium use of old and new equipments

8. Skill development of employees.

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 INTRODUCTION

INDIA’S CURRENT LEATHER INDUSTRY SCENARIO -

The Leather industry has a significant impact on the Indian economy. This industry is among the top ten
foreign exchange earners of the country.

The industry is bestowed with an affluence of raw materials as India is endowed with 20% of the world’s
cattle & buffalo and 11% of the world’s goat & sheep population. Added to this are the strengths of
skilled manpower, innovative technology, increasing industry compliance with international
environmental standards, and the dedicated support of the allied industries.

With the leather industry being among the oldest trade in the country, India has a strong skilled
manpower and innovative technology. The country has a strong and eco-sustainable tanning base and
modern manufacturing units. It also has strong support from the leather chemical and auxiliary industries.
The industry employs about 4.42 million people in the country. It is a prominent source of employment in
the rural parts of India with women employment at about 30% in the sector.

India has four main leather sectors: Tanning, Footwear, Leather Garments and Leather garments and
Accessories. The country accounts for 13% of the world’s total leather production. It is also the second
largest producer and consumer of leather footwear.

Major footwear and leather products producing states in India are Tamil Nadu, West Bengal, Uttar
Pradesh, Maharashtra, Punjab, Karnataka, Madhya Pradesh, Haryana, Kerala, Rajasthan and Jammu &
Kashmir.

India is the second-largest exporter of leather garments, the third-largest exporter of saddler & harness
and the fourth-largest exporter of leather goods in the world. The garments sector accounted for 7.03% of
the country’s total leather export in 2021-2022.

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HISTORY OF THE LEATHER INDUSTRY IN KOLKATA-

Kolkata, the capital of West Bengal state in India, has always been an important leather hub of India.
Kolkata’s leather industry would cover the entire leather manufacturing process, right from the treatment
of raw hides to the manufacture of finished goods.

Kolkata’s tanneries, numbering 500, were situated mainly in Tanagra, Tiljala and Topsia areas of the city.
These areas, which were once on the outskirts of Kolkata, in the course of time, with the rapid expansion
of the city, found themselves in densely populated areas. As a result, the tanneries in these areas could
neither expand, modernize, nor implement an effective solid and water waste management system. This
caused serious problems for the tanneries as well as for the people living in these neighbourhoods.

Calcutta Leather Complex

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To tackle this problem, in 1992, the Govt of West Bengal took the decision to relocate all tanneries in the
city to a new complex. This complex would be built with modern technology and would be equipped with
a CETP (Common Effluent Treatment Plant) which would manage and treat the water and solid waste
released by the tanneries.

A plot of land measuring 438 hectares and situated outside the eastern limits of the city was identified for
this purpose. Thus was born the Calcutta Leather Complex.

The Calcutta Leather Complex is a self-sustained facility which meets all the needs of the tanneries
situated within it. This includes providing electricity, water, and taking care of the waste discharged from
the tanneries.

WEST-BENGAL CURRENT LEATHER INDUSTRY SCENARIO-

West Bengal, particularly Kolkata and its suburbs has developed tremendously into a highly successful
Leather & Leather Goods Export Hub from India within a short span of three decades. The following
factors have helped immensely

 Easy availability of good quality raw materials in considerable quantity.

 Strong tannery and leather processing base.

 Availability of the special soft quality cow Nappa leather that most German Brands prefer. This
particular type of leather processing uses "soft" river water available abundantly in the state.

 Ample availability of skilled labour.

 Good connectivity through road, sea ports and air ports.

 Presence of reputed educational institutions for training in design, manufacturing processes and
technology further strengthens the skilled workforce in the state.

 Duty free import of raw material for manufacturing of finished products meant for export to
neighboring countries as per present Foreign Trade Policy.

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  Proximity of the region to the other South East Asian countries is an opportunity to export to
these ever-growing markets.

 Investors in West Bengal will enjoy duty free import of raw material for manufacturing of
finished products meant for export to neighboring countries as per present Foreign Trade Policy.

West Bengal is the hub of Leather Goods Exports from India, having about 50% share of total exports in
this category. Out of the total 2020 tanneries in India, West Bengal has about 538 tanneries, which is
26.6% of the total. The number of Leather Footwear units is about 230 and the number of Leather Goods
Units is about 436, holding a total percentage share of 30% of the entire sector .

COMPANY PROFILE

“CHANG HING TANNERY” as the name suggests they are mainly deductively focuses on leather
tanning. Since their journey and activities relate the name of the company. This is their 4 th generation to
continuing this business. Mr. Lee is the owner as well as the only chairperson of this business. He leads
this business quite successfully. As an ambitious person like Mr. Lee have strong intentions for growth &
long-term sustainability.

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 KEY PRODUCT OF “CHANG HING”
“CHANG HING TANNERY” as the name suggests they are mainly dedicated to leather tanning. Since
their journey and activities relates the name of the company. As a leather tanning and processing unit they
well efficient to produce raw material for leather merchandises like (purse, shoes, jackets, etc). They are
more into developing the raw animal skin to (RM) to manufacture article. But with the new changes in the
market they well understand the demand. According to the changes the effectively adopt and put step into
manufacturing Finished Goods (card case, jackets etc).

COMPETITORS OF “BUFFALO KING”

India is the second largest exporter of leather garments, third largest exporter of Saddlery & Harness and
4th largest exporter of Leather Goods in the world.

Some major competitors of “Buffalo King” as follows:

Classic Point Leather:

Classic Point Leather, Kolkata is a leather goods manufacturer exporter of quality leather products factory
- leather handbags, leather wallets.

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Classic Point was established in 1987, is a privately company run by family ownership and specialises in
the finishing of leather goods. The medium-sized Indian company (from the South Parganas district of
Karaidanga near Bantala on the Lower Kolkata, West Bengal) with around 110 employees serves
international clients, focusing on leather handbags (60%) and leather wallets (40%).

K. H. Leather Industries

K H Leather Industries Private Limited is a Private incorporated on 06 August 1976. It is classified as

Non-govt Company and is registered at Registrar of Companies, Chennai. Its authorized share capital is
Rs. 5,000,000 and its paid up capital is Rs. 2,496,500. It is involved in Tanning and dressing of leather,
manufacture of luggage handbags, saddlery & harness.

Nadeem Impex

Nadeem Impex is known to produce intricate hand crafted bags for women in soft, light weight, drum
dyed polished leather. For men’s it specializes in producing overnight luggage bags, briefcase, and
messenger and sling bags.

Asian Leather Limited

Incorporated in 1992, Asian Leather has evolved into a company of more than one thousand employees
producing international quality leather handbags, purses and wallets.

ACTIVITIES IN THE COMPANY ON THE DAY OF THE VISIT

We seen lot of activities during our visit, in one day within couple of hours it’s little difficult for us to
understand their functionalities. Within the duration that we spent time over there we tired observed and
learnt. The important thing that specially I like the most which is the importance of social responsibility
that the organisation should follow and they are aware of that not only aware of that they strictly
following the norms on their end.

The operation I divided it into 4 parts as per my understanding.

1. Waste Management.
2. Procurement.
3. Processing.

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4. Converting into final articles.

1. Waste Management:
Professionally removing the skin from the dead animal ensures less waste when the skin is
made into leather. Lobes, cuts, holes and strong indentations reduce the surface yield. Cutting
damages in the middle part of a skin make it impossible to use the skin for larger leather
products such as sofas.

2. Procurement :
They procure animal skin only from the authorized vendor. Where the vendors go through
vendor evaluation process which includes legal compliance fulfilled by the vedor or not. If
the vendors matching the criteria then they will only got selected.

o The company only considers the buffalo skin for processing.

o For good quality reasons they use only slaughter buffalo skin.

3. Processing:

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 The company only focuses on this process because it adds values to the Raw Materials which
procured and move forward.

o The skins are put in to the big boilers with chemicals.

o After collecting from the boilers from the skin they removed grains and asper the skin
layers division is done. Then it’s become ‘Blue Wet’.

o In the ‘Blue Wet’ from they can keep the skins for very long time. Advantage of ‘Blue
Wet’ is that its increases the life span of the skin.

o Now the skins are sent for drying process.

1. Manual Drying – Where skins are directly exposed to the sunlight to dry.

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2. Artificial Drying- Here the skins are drying with the controlled conditions, this process a bit
expensive but don’t have any limitations. Because of this system their production capacity
increases.

o Dried skins are segregated according article as per the order.

o Of the client also .in this process price will set accordingly.

o Plating designing process here designing, pattern, looks are provided with the help of
hydraulic machine.

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3. Converting into final product

In this process skins are more than ready to dispatch. Before dispatch minimum check are done in
here.

o Measurements- measure the article as per square foot.

o Inspiration- certain parameters are checking is done.

o Dispatch- Now the final stage is complete here products are dispatch as per order/article

ANALYSIS OF THE MARKETING OF THE COMPANY

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Target market: The Company’s marketing strategy should include a clear definition of its target market,
including demographic, psychographic, and behavioral characteristics.

Marketing channels: The Company should identify the most effective marketing channels to reach its
target audience, such as social media, email marketing, search engine optimization, and advertising.

Messaging and branding: The company's messaging and branding should be consistent and align with its
target audience's values and preferences. It should communicate the brand's unique value proposition and
differentiate it from competitors.

Sales and distribution strategy: The company should develop an effective sales and distribution strategy
that optimizes its resources and maximizes its reach. This can involve a mix of direct and indirect sales
channels, such as e-commerce, retail, and wholesale.

Customer engagement and retention: The Company should prioritize customer engagement and retention
strategies, such as personalized marketing campaigns, loyalty programs, and excellent customer service,
to build long-term relationships with customers.

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 OVERALL LEARNING FROM VISIT

Every time we face the same allegation that we are creating bad impact to the society by trading
in animal skin. The reply is that every single time to them the dairy product we consume that
impact worse compare to us.

We are only shorted up the mass which created by the dairy industry.

These industries are crueler that is beyond our imagination.

In case of cows milk those cow’s loose ability to produce milk after putting steroids those are sent
for slaughtering.
India is the 3rd country in the world to export red meal.
This statement from the owner Mr. Lee.

As we understand the process of-

Procurement-
Where vendor are required to be evaluated by the different parameters like-
Government rules compliance, Fulfillment of social responsibility, capacity, efficiency, legality
etc.

Efficient labour and adoption of new technologies-

This industry requires more man involvement as well as machinery. The most of the inspection,
shirting, stacking is man involved work.

As their present in the industry for quite ling time with the old machines and they are we adopted
the new technology as well as machineries.

Government Helps- We got to know from the visit from the government they got various helps.
Among them are building bus stops, transportation vehicle dedicated to the plant, financial
benefits, provide business exposure.

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 ACKNOWLEDGEMENT

Vidyasagar University given project of MBA 1st semester is required to industry visit. From the
understanding of the visit we prepare a report. In this visit we learnt so many new things. This industry
visit report happens to be one of the greatest experiences.

I am thankful to the all the industries authority for giving us the opportunity to learn with the prestigious
valuable guidance integrated support and perceptive criticism helped me to conceptualize the precious
and unforgettable experience which help me in my future.

Special thanks to the institute (BIBS) department of PGPIBM for providing me this opportunity for
different ways of learning

Thanks to our teacher Ms. Joyita Basuchatterjee (HOD) and Mr. Deepak Srivastava sir for gave us
excellent platform of doing something in management field at industrial visit.

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 SOURCE

 The reference from the notes which I made.

 https://www.ibef.org/exports/leather-industry-india

 https://leatherindia.org/indian-leather-industry/

 https://wb.gov.in/business-leather-industry.aspx

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