five star leathers

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CHAPTER - 1

INTRODUCTION


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1. INTRODUCTION:

Five Star Leather, Established in the year 2000, is a leather trading agency engaged in

selling of leather located in Erode - India. Erode stands second in leather processing, next only to

Ambur of Vellore District. Erode-Bhavani, a 10 km long belt is completely occupied by Leather

processing industries and Tanneries, integrating the town ofBhavani with Erode. Five star

leather trade durable, perfect quality leather which is available in various sizes and grades as per

the clients requirements. Five star leather has been appreciated by its clients for offering

premium quality Leather.

The Leather Industry holds a prominent place in the Indian economy. This sector is known for its

consistency in high export earnings and it is among the top ten foreign exchange earners for the

country. The Government of India had identified the Leather Sector as a Focus Sector in its

Foreign Trade Policy 2004-09 in view of its immense potential for export growth prospects and

employment generation. Low cost and technical skills offer India a distinct competitive

advantage in this industry.

Indias leather industry is concentrated in a handful of locations. The industry is dominated by a

large number of small firms. Only a handful of firms are large. The small firms have very limited

financial capability to introduce environmentally friendly technologies and production methods.

Five star leather strive to earn customer trust through the quality of their products and through

their responsiveness and accountability to customers.


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CHAPTER - 2

INDUSTRY PROFILE


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2. INDUSTRY PROFILE

The leather and its related downstream industries can claim to be the world's largest industrial

sector based upon a by-product. Most of the leather producing countries are developingcountries, while developed markets such as the US are major consumers of leather products. The

industry is buyer-driven, with producing countries manufacturing in line with specifications,

guidelines and technical advice provided by the buyer countries. China and Italy are the leading

producing and exporting nations in the world with exports .Global trade in leather and related

goods has grown tenfold during the last 20 years. The trade in leather goods and leather products

is particularly important for a number of developing countries. In the case of leather, the raw

material is a by-product of the meat industry. It is an important source of both employment and

foreign exchange.

Recent years have seen a large shift of leather industries from industrialized to developing

countries. This has been prompted by both cheaper labour costs and stringent environmental

regulations in the former. As the environmental regulations in industrialized countries become

stricter, and the cost of compliance increases, leather and many other polluting industries have

moved to developing countries. The developing countries ability to produce and export

environmentally friendly goods depends on a number of factors. These include the cost and

availability of environmentally friendly technologies and production methods. Developing

countries can increase their leather exports by catering to consumer preference in developed

countries by exporting leather produced with cleaner technologies.

2.1. INDIAN LEATHER INDUSTRY

Indias leather industry plays an important role both as an earner of foreign exchange and

provider of employment. India has strength in raw material, trained manpower and technology.

Indias Status Changed from a country exporting finished Leather to finished products.

Leather Industry occupies a place of prominence in the Indian economy in view of its

massive potential for employment, growth and exports. There has been increasing emphasis on


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its planned development, aimed at optimum utilization of available raw materials for maximizing

the returns, particularly from exports. India is largest livestock holding country. Apart from the

process of its conversion into leather and, later, of the design, product development and process

of manufacture, the quality of raw material, of products play a key role in adding value to it.

Leather industry has been identified as one of the thrust areas of exports. Nearly 60 per

cent of the capacity is used for exports and India has emerged as a key player in the global

leather trade. The industry has been experiencing strong export performance and it is among the

top 10 export earners of the country. The key markets for leather products exported from India

are Germany, UK, USA and Italy, which together consume about 49 per cent of Indian exports.

This sector is known for its consistency in high export earnings and it is among the topten foreign exchange earners for the country. With an annual turnover of over US$ 7 billion, the

export of leather and leather products increased manifold over the past decades and touched US$

3.40 billion in 2009-10, recording a cumulative annual growth rate of about 5.43% (5 years).

The Leather industry is bestowed with an affluence of raw materials as India is endowed with

21% of world cattle & buffalo and 11% of world goat & sheep population. Added to this are the

strengths of skilled manpower, innovative technology, increasing industry compliance to

international environmental standards, and the dedicated support of the allied industries.

The leather industry is an employment intensive sector, providing job to about 2.5 million

people, mostly from the weaker sections of the society. Women employment is predominant in

leather products sector with about 30% share.

2.1.1 Features of Indian leather industry

y The Government policies on leather and leather product export started changing from1974. Priorities were given for export of value added goods.

y From the year 1991 onwards only finished leather were exported and export of raw orsemi finished leather was banned

y Many tanners started setting up factories for manufacturing leather products after 1991-92 like shoe uppers, shoes, garments and leather goods.


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y Similarly many shoe and garment manufacturers began to seek backward linkage, bytaking on lease or setting up tanneries. This is a unique development in India, a tanner

becoming product maker and the product sector setting up tanneries or leasing out

tanneries

y Until 2002, the leather sector was reserved for small scale sector and this may haveprevented Foreign Direct Investment (FDI) in this sector.

2.1.2 Strengths of Indian leather sector

y Own raw material source 2 billion sq ft of leather produced annuallyy

Some varieties of goat / calf / sheep skins command premium positiony Strong and eco-sustainable tanning basey Modernized manufacturing unitsy Trained / skilled manpower at competitive wage levelsy World-class institutional support for Design & Product Development, HRD and R & D.y Presence of support industries like leather chemicals and finishing auxiliariesy Presence in major markets Long Europe experiencey Strategic location in the Asian landmass

2.1.3 Emerging strengths

y Design development initiatives by institutions and individualsy Continuous modernization and technology up gradationy Economic size of manufacturing unitsy Constant human resource development programme to enhance productivityy Increasing use of quality componentsy Shorter prototype development timey Delivery compliancey Growing domestic market for footwear and leather articles


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2.1.4 Government Support Measures:

y Leather sector is one of the Focus Sectors under Foreign Trade Policy of the Govt.y Funding support provided towards export promotion & market development activities.y Funding support provided towards technological upgradation and modernization of

production units, leather industry infrastructure strengthening, environmental safeguard

measures, Human Resource Development and other development projects.

y Entire leather sector is de-licensed facilitating for expansion on modern lines with state-of-the-art machinery and equipments. 100% Foreign Direct Investment permitted

through automatic route.

y Duty free import of raw hides and skins, wet blue chrome tanned leather, crust leatherand finished leather of all kinds including splits and sides thereof.

y Duty free import of specified critical inputs for manufacturers of leather garments andother leather products including footwear under Duty Free Import Scheme (DFIS).

y Basic customs duty exempted on machinery or equipment for Effluent Treatment Plantsin leather industry.

2.1.5 Future Outlook:

In the Foreign Trade Policy 2004-09 , The Government of India had identified

the Leather Sector as a Focus Sector . Accordingly, the Government is also implementing

various Special Focus Initiatives under the Foreign Trade Policy for the growth of leather sector

aimed to enhance export to US$ 7.03 billion by 2013-14, and resultantly create additional

employment opportunities for overall one million people.


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2.2 Structure of the Industry

For a number of years the leather sector was reserved for small-scale sector in India. This was

done primarily to promote employment. A number of policy instruments such as tax exemption,

licensing restrictions and reservation policy were used to encourage the growth of the leather

industry in the small scale and cottage industry sector.

In India, the fact that this industrial sector remained, by and large, reserved for the small scale

sector as 2002, is reflected in its structure. The leather industrial sector comprises of:

a) tanneries (where raw hides and skins are converted into wet blue leather)

b) factories transforming leather into a variety of consumer products such as footwear, garments

and outerwear, and assorted leather goods such as wallets, passport cases, key chains, handbagsand brief cases.

2.2.1 Production centers:

India has a well established leather industry that is present across three regions. A large part

(nearly 60-65 per cent) of the production is done by the small/cottage sector. Leather and leather

products production is centered in southern, northern and eastern India. The industry uses

primarily indigenous natural resources with little dependence on imported resources. Key

production units are located in Tamil Nadu, West Bengal, Uttar Pradesh, Punjab, Karnataka,

Andhra Pradesh, Haryana and Delhi.

The main production centers for leather and leather products are the following:

y Tamil Nadu Chennai, Ambur, Ranipet, Erode, Vaniyambadi, Trichy and Dindigul.y West Bengal Kolkatay Uttar Pradesh Kanpur, Unnao, Banther, Agra and Noiday Punjab Jallandhar


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Tamilnadu :

Tamil Nadu is the biggest leather exporter in the country with the south accounting for 43 per

cent of the countrys share and has about 60% of tanning capacity.

2.2.2 Institutional set up:

The industry has a very strong institutional set up. The following are the major institutions cater

to the industry:


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CLE Council for Leather Exports (Under Ministry of Industries and Commerce);

CLRI Central Leather Research Institute

AISHTMA, All India Skin Hide Tanners Merchants Association

ISF, Indian Shoe Federation

IFLMEA, Indian Finished Leather Manufacturers and Exporters Association

CFTI Central Footwear Training Institute

ILIFO, Indian Leather Industry Foundation

2.2.3 Regional Tanners Associations

Common Effluent Treatment Plants

Special Purpose Vehicles promoted to implement certain infrastructure projects

IILP, Indian Institute of Leather Products

UPLIA, Uttar Pradesh Leather Industries Association

CLCTA, Kolkata Leather Complex Tanners Association

AFMEC, Agra Footwear Manufacturers and Exporters Association

2.3. Competitive Advantages

The leather industry can benefit from several characteristics of the Indian market and the

corresponding advantages they offer. Some of these advantages are:

2.3.1 Supply side advantages

2.3.1.1 Availability of low cost, skilled labour:

Indias advantage as a source of low cost, skilled labour is quite relevant to industries such as

manufacturing of leather goods and footwear that are relatively labour intensive. India has

among the lowest cost of labour among key footwear producing countries. In addition to low

costs, India also has the worlds largest technically trained manpower in leather craft.

The twin advantages ofLabor availability

y Population between 15 to 59 yrs. is about 60%y 9.1 % of the population unemployedy Work force understands English


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y Adequate social security measures are in-builty Validated by low employee turnover of 4%

2.3.1.3 Availability of Raw Materials

India is the largest livestock holding country with 21 per cent of the large animals and 11 per

cent of small animals in the world. The large population of cattle, buffaloes, goat and sheep that

the country possesses ensures that India has ten per cent of the worlds raw material base. In

addition, some of the leather available in India is premium quality and much sought after.

2.3.1.4 Availability of supporting institutions

India has institutions that support the leather industry in specific areas such as product

development, design and R&D. These institutions enable capability building in the industry and

help it become competitive.

2.3.1.5 Product development/ design

A design development centre for leather garments and leather accessories is under the joint

efforts of the Council for Leather Exports and the National Institute of Fashion Technology

(NIFT). The design development centre functions from the NIFT campus in New Delhi.

2.3.1.6 Research and Development capabilities

The Central Leather Research Institute (CLRI) is the worlds largest leather research institute.

CLRI today, is a central hub in Indian leather sector with direct roles in education, research,

training, testing, designing, forecasting, planning, social empowerment and leading in science

and technology relating to leather. State-of-art facilities in CLRI support innovation in leather

processing, creative designing of leather products and development of novel environmental

technologies for the leather sector.

2.3.2 Demand side advantages

Large domestic market India has a large and growing consuming class that constitutes the largest

segment of the population today.


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2.3.3 Government Regulation & Support

The Government of India has announced various initiatives to make the leather industry more

competitive.

2.3.3.1 Key policy initiatives include:

y De-licensing of integrated tanneries that convert raw hides and skins into finished leather.Several leather goods have been reserved from the Small Scale sector.

y Free import of raw hides & skins, semi-finished and finished leather.y Concessional duty on imported machinery and chemicals.y Free export of raw hides & skins, semi-finished and finished leather and leather products.y Policies to facilitate modernization / upgradationy Setting up of leather parks

2.3.3.2 Licensing policy

Some of the items of the leather industry, viz. industrial leather gloves, leather suitcase and travel

goods, leather purses and hand bag, fancy leather goods and novelty items, watch straps and

leather straps of all types are still reserved for exclusive manufacture by the small scale sector.

Small scale sector units are defined in terms of investment in plant and machinery. Non-small

scale units can manufacture these items after obtaining industrial license, which is granted

subject to an export obligation of 50 per cent of the production each year.


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CHAPTER - 3

COMPANY PROFILE


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3. COMPANY PROFILE:

This company was established in the year 2000. Five star leather provide leathers including the

wet blue leather of the desired size, quality and at reasonable rates. A special feature of this

company is that it has not received a single complaint since the year of establishment.

Representing the end-buyers, they maintain a close watch on the production rate and keep the

buyers regularly updated on the status of production of their placed orders.

Year of Establishment : 2000

Legal Status of Firm : Sole Proprietorship (Individual)

Number of Employees : Upto 50 People

Turnover : Rs. 10 Crore Approx

3.1. Why Five star leathers?

Five star leatherare the preferred choice of their clients because of the following reasons:

y Qualitative rangey Wide experiencey Competitive pricesy Easy payment modesy Wide networky Quality assurancey Delivery on timey Constant supply throughout the year


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3.1.1 Vision:

Strive for excellence in all they do through socially and environmentally acceptable means.

3.1.2 Mission:

They will be a responsible corporate citizen and share the benefits with society. They will make

their customers, employees, suppliers and shareholders feel proud of their association and want a

long-term relationship with them.

3.1.3 Supplier Base

Serving the industry as one of the prominent company, it is imperative for them to have a wide

base of reliable suppliers to efficiently meet the requirements of their clients.

The parameters on the basis of which they make selection of their vendors are listed below:

y Strong ethical standardsy Qualityy

Ability to undertake bulk ordersy Adherence to delivery deadlinesy Financial conditiony Past clients servedy Compromise prise according to their supply

Following such strict measures, Five star leather have been able to establish cordial relations

with some of the most renowned and trusted vendors both in the domestic markets.


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CHAPTER - 4

PRODUCT RANGE


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4. PRODUCT RANGE:

These include Leather of Buffalo Skin and Cow Hides converted into Wet Blue. Their entire

array of wet blue Leather is available in various sizes, thickness and grades as required by their

clients

Five star leather offer a comprehensive range of Wet Blue Leather using high quality raw skin

procured from their global vendors. These are widely used in garments and footwear industries.

Their range is appreciated for glossy finish, crack resistance, durability and can be availed in

various sizes, thickness, grades and shapes that suits perfectly for their products. Classification ofthe skins according to their grades is done prior to customers examination, for their

convenience. The sorting of leather is done by experts who has more than 20yrs of experienced

in this field. The size of each leather is measured using a special machine. Measurement is done

once after the assortment of grades. The price varies according to the grade of the skin as shown

in the table.

Grade Price per sq.mt

(in Rupees)

1 80-90

2 70-80

3 60-70

4 50-60

5 40-50

6 30-40

7 20-30

8 15-20


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CHAPTER - 5

THE ORGANIZATION STUDY


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5. THE ORGANIZATION STUDY:

The study on Five star leather which engaged In trading of various leather products and to study

activities related to all its functional departments like HR, Production, Marketing, Finance, etc.

The various objectives of the study were:

To experience and understand real life situations in industrial organizations To understand the formal and informal relationships in an industrial organization

so as to promote favorable human relations and teamwork.

To gain to select the optimal solution in handling a situation, to learn the acceptedsafety practices in the industry and to develop a sense of responsibility towardsthe society.

Departmentation:

y HUMAN RESOURCES DEPARTMENTy PRODUCTION DEPARTMENTy FINANCE DEPARTMENTy MARKETING DEPARTMENT

5.1. HUMAN RESOURCE DEPARTMENT:

Human resources or Personnels main responsibility is the recruitment, selection, training and

development of staff. This will involve developing staff to maximise their potential in a manner

that furthers the organisations objectives.

Human resources may also need to comply with legislation applicable to the country in which

they are based. Human resources often adopt a welfare role which includes looking after

employees whilst they are at work. They may also create policies that balance organisational

needs with those of the employee. They will also interpret employee welfare legislation and

ensure that the organisation is complying with the applicable legislation.


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5.1.1 People and Values:

Delivering on our vision requires people who are energetic, enthusiastic andpassionate about their work, and who share and embody the following values:

y Excellencey Leadershipy Goal Obsessiony Integrity

Each one of these values has specific attributes which the company fosters in thefabric of its culture and performance systems.

They say, machines can only be as good as the people who make them. Perhaps that's

why Five star leather sees people as its most important assets. A feature that is all the

more substantiated by the fact that Five star leather has not lost a single man-day

since its inception.

Some of the operational aspects of Five star leather that directly contribute to theirpeople are -

y An objective system of appraisal, reward and promotions that revolve aroundthe achievement of quality parameters.

y A system of reality check that scans the environment regularly and ensuresthat the quality parameters are identified and the system of appraisal is indeed

in line with the respective requirement.

y Focus on systematic communication to ensure free, transparent, all round andrelevant information flow.

y Developing leadership qualities to evolve professionals who can handlebusiness and growth opportunities independently.


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5.2. MARKETING DEPARTMENT:

The marketing department will research customer needs to develop strategy and product to

satisfy that customer need. In its research, the marketing department will investigate the market

they are aiming at the type of consumer making up the market and the preferences of the

consumer within that market. The marketing department will then need to marry consumer

preferences with producing a product that is profitable. Once the product has been designed by

the production department marketing will then need to package, advertise, and promote the

product. Sales are responsible for persuading the consumer to purchase the end product,

manufactured through marketings research.

Their Clients: -

y N.M.Zakriah & Company, Aambury Florence Shoe Pvt ltd, Aambury PAB Leather Exportsy T.Abdul Wahid & Companyy Sukoor Leather Exportsy AMN Leather

5.3. FINANCE DEPARTMENT:

The financial section of the organization will keep manual/electronic records of money received

and paid out by the organization. This information will then be used to produce various financial

statements for tax purposes and to comply with legal requirements. The information will also be

used to produce management accounts to enable senior managers to plan and review business

strategy.

The finance department or unit may also be responsible for administering employee expenses

and salaries. For payment of wages the finance department will need to take into account

statutory deductions such as tax, and employee contributions such as pension or loan

repayments.


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5.3.1 Books maintained by the company:

Five star leathers maintains the following books

Purchase register. Salary account. Closing Stock Outstanding ledger. Bank book. Cash book. Trading and Profit/Loss account. Balance sheet. Trial Balance.

a. Purchase register:The Details of all the purchases made by Five star leathers are maintained in this register.

b. Salary Account:This account shows the expenditure of the company by providing monthly salaries.

c. Closing Stock:It represents the business's remaining stock at the end of an accounting period.

d. Outstanding Ledger:This account contains the details about the bills which the company has to pay.

e. Bank Book:In this book, Five star leathers enters all banking transactions, including cash withdrawals

from bank and cash deposits with bank, and issue of cheque/demand draft/pay orders to creditors

and receipts cheque/demand draft/pay orders.


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f. Cash book:It holds various transactions regarding inflow or outflow of cash. It holds all the cash

transactions when the cash is brought into the business or received from customers or withdrawn

from bank etc.

g. Trading and profit and loss account:It keeps a record of the trading and profit and loss. Company uses this to estimate the

profit or loss.

h. Balance sheet:This is prepared half yearly and yearly. Assets and liabilities position of the concern can

be known from the balance sheet. It shows the present condition of the firm.

i. Trial balance:It is prepared for particular period with all ledgers like general ledger, creditor ledger etc.

In leather industry price for raw materials is not paid like other product. The payment is

made only after the stock report is made by the production department. The stock report of each

lot contains the number of leather in each grade and the size of the leather. The payment for the

raw material is made considering the profitability of that lot, the prices are negotiated

accordingly.

The customer in this industry normally do business in credit basis, the creditability of

each customer depends on their past records, name in the society and the companies position in

this industry. Only small size customers do payment on delivery .

5.4. PRODUCTION DEPARTMENT:

Production is the functional area responsible for turning inputs into finished outputs through a

series of production processes. The Production department is responsible for making sure that

raw materials are provided and made into finished goods effectively. He or she must make sure

that work is carried out smoothly, and must supervise procedures for making work more efficient

and more enjoyable.


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5.4.1 Leather Production Technology

Leather tanning is the process of converting raw hides or skins into leather. Hides and skins have

the ability to absorb tannic acid and other chemical substances that prevent them from decaying,

make them resistant to wetting, and keep them supple and durable. The surface of hides and

skins contains the hair and oil glands and is known as the grain side. The flesh side of the hide or

skin is much thicker and softer. The three types of hides and skins most often used in leather

manufacture are from cattle, sheep, and pigs.

Tanning is essentially the reaction of collagen fibers in the hide with tannins, chromium, alum, or

other chemical agents. The most common tanning agents used in the U. S. is trivalent chromium

and vegetable tannins extracted from specific tree barks. Alum, syntans (man-made chemicals),

formaldehyde, glutaraldehyde, and heavy oils are other tanning agents. There are approximately

111 leather tanning facilities in the United States. However, not every facility may perform the

entire tanning or finishing process. Leather tanning and finishing facilities are most prevalent in

the northeast and midwest states; Pennsylvania, Massachusetts, New York, and Wisconsin

account for almost half of the facilities.

Source of raw materials:-

Shahail Trading Company Noor Leather, Calicut Muhammad Abdul Samad & Brothers Sadiq Leather, Kollam KP Samad, Thrissur Yehiya Traders, Rajamundri Vijay-X, Ahmedabad

General flow diagram for leather tanning and finishing process:


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Tanning consists of the following process:

y Desalting. The objective of desalting is to remove the excess salt from the raw hides,reducing the total dissolve solids in the effluent stream. A majority of tanneries

including tanneries in erode carry out desalting without the use of mechanical

devices. This leads to only partial removal of salt from the hide/skins. In only a

handful of tanneries was desalting carried out with DODECA wooden frames or

brush desalting. Efficient desalting can lead to 20-25% reduction of TDS and chloride

in the combined effluent stream. Soaking is largely done in pits, and the quantity of

water is not measured. Most tanneries do not reuse water from the second soak.

y Liming. Liming is mainly done in paddles. Most tanneries use sodiumsulphide/hydrosulphide in the liming operation. The effluent from this process is the

most polluted effluent of the tanning process. The skin is left in a pit for three days

with the above mentioned chemicals.

y Fleshing. While a number of large tanneries use machines to carry out fleshing ofhides, most small tanneries do fleshing by hand. Extract from fleshings are not

utilized properly and are disposed off as waste. As sulphide/hydrosulphide are added

to the skin in liming process the flesh becomes useless.

y Washing. Washing before and after deliming is usually done with running water.Batch washing, which is more environmentally friendly, is not practiced. The

unnecessary parts of the skin which cannot be used in future are trimmed out. As the

chemical that is to be used in further stage are expensive.

y Deliming. Ammonium sulphate and proteolytic enzymes is commonly used fordeliming. Only a handful of tanneries use phenolphtalein to control the deliming

process. The pollutants from the process include calcium salts, sulphide residues,

degraded proteins and residual proteolytic enzymatic agents.


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y Pickling. This is done in a bath of water, salts and sulphurinc acid. Only a fewtanneries measures density of the batch, and most use excess of salt for pickling. This

lead to a wasteful use of salt.

y Tanning. Most of the tanneries undertake chrome tanning, and use BCS. The chromeexhaustion varies between 45% to 55%. This is low compared to the rate of

exhaustion (about 70%), which can be achieved by an improvement of the drum

arrangement, without any change in chemical input. The soft hairs that remains in the

skin are removed by shaving the skin using a knife.

y Dying. Dying is mainly done using azo dyes. It was found that the large firms usedyes supplied by reputed companies (such as BASF, Bayer and TFL) , which were

found to be of high quality.

y Retanning. Most tanneries practice retanning. It was found that the process was notproperly monitored and led to poor exhaustion of chemicals. This was because of the

high quantity of retanning agents.

Tanning Houses in erode where tanning process is carried on:-

A.M.S Tanners S.A.Abdul & Company K.M.R Tanners Kishor Tanners K.M.H tanners

The charges for these tanners are measured according to the number of drums and the

chemicals that is used in them. The chemical consumption depends on the size and

thickness of the leather.


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CHAPTER 6

LEARNINGS


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6. LEARNINGS:

After spending six weeks at different departments of the company and interacting with theemployees, getting their views and observing the organizational structure and design, I am in a

position to understand the organization behavior and the discipline followed by the employees of

the company. I had loads of exposure to the theoretical as well as the practical aspects of the

various departments. I also made interaction with customers and supplier of the company during

this period, understanding the type of relation that exists among us.

From all the observations I made during this period I personally feel there few things that has to

be added to have a better result in this industry. There is need to construct good slaughter houses

for the getting proper hides with minimum damage. Damages on the skin will reduce the skin

grade. There is also a need to undertake thorough study on the prevailing conditions of urban

slaughter houses in the state.

The labour in leather production started to move out of the industry due to the health hazardous

condition in the work environment and many other reasons. There is a possible threat of

insufficient labour force in future.

During the internship I realized following duties.

y Cohesivenessy Ever Ready For Challengesy Broad visiony Always Create Opportunitiesy Open Communication

a. Cohesiveness:A team player can achieve more than an individual. Good coordination and cooperation

with peers and other staff members can impulse a person to perform better in difficult situations.

During my internship I noticed that the degree of cohesiveness among the Five star leather

employees is high, that is why Five star leather is achieving its target quite efficiently.


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Another factor is the traditional conservatism derived from hesitation over process alterations

especially when satisfactory leather is being currently produced. This is particularly the case in

small to medium scale semi-mechanized family owned units. Another barrier is the frequent

remoteness of government-backed R & D facilities from everyday practicalities of leather-

making, together with reluctance on the part of traditional tanner groups where resistance to

change is compounded by political influence.

The cost of introducing a cleaner processing method may be prohibitive and beyond reach of a

small scale tanner: the price of a special drum for hair save unhairing with the necessary

auxiliary equipment may be as much as twice the conventional drum. Enzyme unhairing needs

very accurate control and consistency of all parameters (temperature, float, etc) which is possible

to achieve only in rather sophisticated tanneries and it is associated with higher production costs

(partly off-set by lower wastewater treatment expenses). High chrome exhaustion tanning

requires very expensive specialty chemicals, normally proprietary products.

Challenges for the tannery sector

Increased cost of production per unit area of finished leather due to stringent environmental

norms

Expansion of production capacities issue in Tamil Nadu due to local laws despite compliance

Increasing demand of raw material raw hides, skins and semi finished leathers

Low level of technology in small tanneries

No specific dedicated industrial areas for leather sector in Tamil Nadu

Poor capacity utilization in most tanneries leading higher financial cost and overheads


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BIBLIOGRAPHY:

y www.leatherindia.orgy www.iltaonleather.comy www.ilpaindia.orgy UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

five star leathers

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