PRE-FEASIBILITY REPORT · 2016-11-14 · M/s Liberty Shoes Limited Pre-Feasibility Report...

M/s Liberty Shoes Limited Pre-Feasibility Report Manufacturing of sole with direct injection at Village: Raipur, District: Haridwar, State: Uttrakhand

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PRE-FEASIBILITY REPORT

for

Manufacturing of Shoes, soling with Direct PU

Injection Technology

at

Village: Raipur,Tehsil: Bhagwanpur,

District: Haridwar,State:Uttarakhand

APPLICANT

M/s LIBERTY SHOES LIMITED


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CONTENTS

Chapter Particulars Page No.

1. Executive Summary 14

2. Introduction of the Project 17

3. Project Description 19

4. Site Analysis 26

5. Planning Brief 28

6. Proposed Infrastructure 29

7. Rehabilitation and Resettlement (R&R) Plan 30

8. Project Schedule & Cost Estimates 31

9. Analysis of Proposal 32


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1. EXECUTIVESUMMARY

1.1 PREFACE

The leather industry is one of the oldest traditional industries. It has several components like

tanning, footwear & leather products including garments. Modern leather industry began with

British governments direct encouragements. First modern tanning was established in 1857 (Kumar,

1997). The first modern footwear industry was started in 1887. However, the footwear industry was

largely based on traditional artisan mode. In the industrial policy of 1967, the leather industry

including footwear was reserved for small scale sector. In late 1970s and early 1980s, 100 per cent

export-oriented footwear industries in larger scale were promoted and that allowed larger scale

industries to get established afresh. Only in the month of June in 2001, the leather industries were

de-reserved.

The Indian footwear industry has developed substantial links in the global production network. But,

this industry is still dominated by firms that cater largely to the domestic market through the

artisanal production system. Specific footwear centers and sections of firms in traditional footwear

clusters have established strong relations with the export market. Still, there are only few firms that

are directly involved in the global production chain of multinational corporation (MNC) in the sports

footwear category.

M/s Liberty shoes Limited has been in the footwear business for more than 55 years now with 75%

of the market share in the India. Its total turnover is Rs. 450 crores which comes from domestic

institutional and export markets. Liberty shoes had a strong brand image and are one of the largest

shoe manufacturers in the world.

Promising business developments have taken place in the organization and this has led the

management to think out of the box and install more production capacities outside the present

manufacturing cluster. Though already having 4 manufacturing units in India, Liberty is short of

production capacities. Keeping in the mind special proposals from the state governments for tax and

social benefits, it would be advised that further units being installed should either be in such states

or social economic zones (SEZ), where the business can flourish at the times of increasing

competition from other countries and avail tax benefits.

Cost reduction is the major factor for capturing the market, for the last 8-10 years with all input

costs going up every year there is hardly any scope for further reduction of input cost. The other

major cost reduction is excise Duty. Sales tax which amounts to almost 17% of MRP. This is being

availed by unorganized sectors. We understood that in Uttaranchal state the excise Duty, Sale tax


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and Income tax exemption has been granted, as soon we are planning to set-up a unit for

manufacturing of shoes of high value items so that we could avail this cost reduction.

M/s Liberty Shoes Limited is setting up a production facilities for direct PU-injected shoe – Single

density and double density, which will substantially increase the production capacity and create new

thought horizons. Capacity is 18000 Pairs of leather shoes Per Day. The plant is located at Village:

Raipur Tehsil- Bhagwanpur, District- Haridwar, State- uttarakhand.

This pre-feasibility report includes a brief introduction of the company, need and justification of the

project, manufacturing process description, required and available resources, proposed

Environment Management Systems, existing land-use and proposed infrastructure, project

schedule and cost estimate, and proposed Terms of reference for conducting the EIA studies.

The industry has engaged Vardan Environet as their Environment Consultants to conduct the EIA

studies for obtaining EC for the proposed project. Vardan Environet is a NABET accredited (QCI

approved) Environmental Consultant (NABET/EIA/1316/IA001).

Salient features of the project are given in the table below:

Table – 1: Salient Features of the Project

S.No. Particulars Details

1 Nature & Size of the Project Particulars Production Capacity

Upper sole Leather

Shoes

18000 Pairs per day

2 Category of the Project As per EIA Notification dated 14.09.2006 and as

amended from time to time, the project falls in

Category ‘B’, as unit is located in notified industrial area

(Raipur Industrial Area). But the unit is not covered as it

is falls in Green Category as no synthesis of organic

chemical involved.

3 Location Details

Plot no. 234,241, 242, 243, 244, 245 & 262 of Raipur Industrial Area.

Village Raipur

Tehsil Bhagwanpur

District Haridwar

State Uttralkhand

Topo-sheet Nos. 53G13, 53G9, 53F16 & 53F12

Latitude 250 56’ 58.9”N

Longitude 77047’ 47.3”E

4 Area Details


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S.No. Particulars Details

Total Plant Area 27000 m2

Greenbelt / Plantation Area

(ha)

16455 m2.i.e.approx.60% of total plant area has already

been developed in greenbelt.

5 Environmental Setting Details (with approximate aerial distance & direction from

plant site)

Nearest City Nearest Town: Bhagwanpur,1.9 Km

Haridwar(District Headquarter), 35.5 Km, E.

Nearest National Highway

/State Highway

NH-73 at distance of 0.4 Km in NW

Nearest Railway station Churiyala Railway Station,8.2 Km in SW

Nearest Airport Dehradun Airport,Dehradun 45 km,NE

National Parks, Wild Life

Sanctuaries, Biosphere

Reserves, Tiger/ Elephant

Reserves, Wildlife Corridors

etc.within 10 km radius

None, within 10 km radius.

Reserved Forests (RF) /

Protected Forests (PF) etc.

within 10 Km. radius

None, within 10 km radius.

River / Water Body (within 10

km radius)

Solani River (Seasonal River) – 2 Km in East

6 Cost Details

Total Cost of the Existing &

Modernization Project

2896.47 Lakhs

Cost for Environment

Management Plan

25.00 Lakhs

Total Water Requirement

(KLD)

50 KLD

Power Requirement (KW) 425 KVA

Man Power Requirement 350


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2. INTRODUCTION OF THE PROJECT

2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT

M/s Liberty Shoes Limited is setting up a production facilities for direct PU-injected shoe – Single

density and double density, which will substantially increase the production capacity and create

new thought horizons. The capacity of manufacturing unit is 18000 + 1500 Pairs of leather shoes

Per Day.

M/s Liberty shoes Limited is having following people on its Board of Directors:-

1. Adesh Kumar Gupta

CEO & Executive Director

2. Mr. Ashok Kumar

Occupier cum Director

Corporate Office:- Liberty Complex, 17th Milestone, G.T. Road, Gharaunda, Distt. Karnal -132114.

Factory Address:- Liberty Polyurethane, Plot No. 234, 241 to 245 & 262, Raipur Industrial Area,

Bhagwanpur, Roorkee, District: Haridwar (Uttarakhand).

2.2 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND REGION

The leather industry is one of the oldest traditional industries. It has several components like

tanning, footwear & leather products including garments. Modern leather industry began with

British governments direct encouragements. First modern tanning was established in 1857 (Kumar,

1997). The first modern footwear industry was started in 1887. However, the footwear industry was

largely based on traditional artisan mode. In the industrial policy of 1967, the leather industry

including footwear was reserved for small scale sector. In late 1970s and early 1980s, 100 per cent

export-oriented footwear industries in larger scale were promoted and that allowed larger scale

industries to get established afresh. Only in the month of June in 2001, the leather industries were

de-reserved.

The Indian footwear industry has developed substantial links in the global production network. But,

this industry is still dominated by firms that cater largely to the domestic market through the

artisanal production system. Specific footwear centers and sections of firms in traditional footwear

clusters have established strong relations with the export market. Still, there are only few firms that

are directly involved in the global production chain of multinational corporation (MNC) in the sports

footwear category.


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Demand- Supply Gap & Imports vs. Indigenous production

As a whole in India, more than one lakh employment is found in leather footwear manufacturing. Three

states namely Uttar Pradesh, Tamil Nadu and West Bengal contribute sizable proportion of employment

of footwear industry contributing four-fifth of total employment. These three states present quite

different structure of employment across employment size class. Employment in Uttar Pradesh is fairly

spread out in middle and upper size class of firms along with employment share of one-fourth in

informal sector of DME. In Tamil Nadu, the employment is virtually limited to size class of firms

employing 100 workers or more. In West Bengal, we can observe the classical case of missing middle

with concentration of employment in informal sector of DME or in firms that employ 1000 workers or

more. For India as a whole, the missing middle phenomenon is less prominent with considerable

presence of firms in the middle segment.

2.3 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT

Direct and indirect employment will be generated due to the project. The total manpower requirement

for the proposed Modernization project will be 350 persons (inclusive of on roll employees and on

contract employees).


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3. PROJECT DESCRIPTION

3.1 PROJECT LOCATION

Figure 3.1 Location map of Project


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Figure: 3.2 Key Plan of project Site


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Figure: 3.3 Layout Plan of project Site


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3.2 SITE ALTERNATES

Since this is an existing Industrial area where no additional land acquisition or civil construction is

proposed, site alternates were not discovered.

3.3 RESOURCE REQUIREMENT

To carry out production activities various resources like raw materials, power, fuel, water, manpoweretc.

will be utilized.

3.4 SIZE OR MAGNITUDE OF OPERATION

M/s Liberty Shoes Limited is proposing manufacturing of Sole with direct PU injection with capacity of

18000 Pairs of leather shoes Per Day at Village- Raipur, Tehsil-Bhagwanpur, District-Haridwar, State-

Uttarakhand.

Although it is a shoes manufacturing unit and it is not covered under EIA notification, Uttarakhand

Environment protection & pollution board desired that proponent should obtain Environmental

Clearance as chemicals are used in manufacturing process.

As per EIA Notification dated 14.09.2006 and as amended from time to time, the project falls in Category

‘B’, as unit is located in notified industrial area (Raipur Industrial Area).

The process includes basic raw material requirement, sizing of equipment, utilities & services,

infrastructure facilities & sources of waste generation, their quantity, treatment & safe disposal of the

waste.

3.5 MANUFACTURING PROCESS:

Process Description:

Shoe manufacturing is broadly divided into two sections upper & sole. Process for both upper & sole

manufacturing is explained below.

UPPER PREPARATION:

Upper preparation includes cutting & closing of footwear components of upper portion.

1. CUTTING SECTION

1.1 Cutting of footwear components

Finished Hides/Sides or synthetic material is received from main store against plan. In case of lather

Sides/Hides 7 cutting dies are issued to cutters for cutting in hydraulic cutting machines regarding

synthetic items material are issued to beam cutting machines according to daily cutting plan. All cut

components are directed to quality checks as per specification/pattern.

1.2 Stamping

Cut components are received from passing table for the stamping of size on each pair with the help

of foil & hot stamping machine.


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1.3 Splitting

Pair wise cut components are received from stamping for splitting to get the desired thickness of

cut component.

1.4 Skiving

Pair wise components are received from splitting section for the trimming of edges in the required

components. (Note: In case of synthetic components stamping & splitting is not done after cutting it

directly goes for skiving.)

1.5 Packing & dispatch

All the cut component; are packed in polyethene bags pair wise, Eachpolyethene bag contains 10

pairs. Packed polyethenes are sent to cutting stone.

2. CLOSING SECTION

2.1 Preparation of Baskets

Cut components are received from cutting store & other material like thread, adhesive etc. are

received from main store according to plan. After counting basket for 10 pairs of cut components &

granaries for feeding in conveyor.

2.2 Coloring& marking

Edge coloring is done on the required components with the help of dye &Marking for thr fitting &

stitching is done on the required components with the help of pencil & Marking Pattern.

2.3 Fitting

As per the process sheet & marking on the components are fixed with each other with the help of

adhesive & passed on to next stage for stitching.

2.4 Stitching

Fitted components are stitched as per the marketing pattern. Post bed or single bed stitching

machine is used as per the requirement of the article.

2.5 Punching

Stitched uppers are punched for fixing of eyelets/D-rings etc. with the help of punch machine or

manually with hammer & punch.

2.6 Buckle/Eyelet fitting

Eyelets/buckles are fixed to upper with the help of machine & moved further for thread burning &

cleaning.

2.7 Thread burning, cleaning & pairing

Extra threads are burnt with the help of hot blower & upper is cleaned for extra adhesive with MEK,

crape & paired according to lot size & moved to upper store.


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3. STROBLE AND MOULDING (PRE SOLING)

3.1 Moulding

Closed uppers are received from upper store for the toe & counter moulding to give proper shape

to toe and counter area.

3.2 Strobling

Moulded uppers are received and strobling is done to provide inner socks to upper & sent to upper

store. (In case eyelets are not fixed to the closing section then first eyeleting is done in this section).

1. INJECTION

PU system:

Following materials are required for PU formation

ISO-cynate

Polyol +catalyst+additive

Pigments

All the materials are charged into different tanks in different ratios as per the product specification

& requirement.

1.1 Lasting

Srobled uppers are received from upper store & lasted on machine & proper hammering is done

with the help of wooden hammer for proper setting of upper on last.

1.2 Marking & Grinding

Lasted uppers are set in to the mould to get the marking on upper for grinding. Grinding is done

with the help of grinding tool. It is operated pneumatically.

1.3 Injection & Demoulding

As per the set parameters grinded upper is set for injection &moulds are sprayed with release

agents. After injection shoe is removed from the machine & trimming is done to remove flashers of

PU from sole & loaded into trolley for finishing.

2. FINISHING

Injected shoes are received from Injection machine. Inner socks is inserted in to shoes, & cleaning is

done for extra adhesives & moved to finishing spray booth for spraying finishing chemical as per

required finish & moved to passing stage.

3. SORTING AND PASSING

First lacing is done & after that shoes are inspected for visual defects & accordingly decided for first

& second quality, & sorting is done pair wise & moved for packing.

4. PACKING

Passed shoes are packed in specific boxes & move for carton packing according to size roll. Packed

cartons are sent to finished goods store.


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3.6 RAW MATERIAL REQUIREMENT:

The details of raw material required for the proposed manufacturing unit is given in below table:

Table 3.1: Details of Raw Materials

S.No. Material Description Unit Qty/ Year

1 Leather Uppers Pair 571262

2 PU Chemical (Iso cynide & Polyol) + Additive

Kgs 334733.75

3 Pigment Kgs 6905.00

4 Leather FT2 276850.30

5 Toe Caps Pair 242628

6 Addhesive Kgs 12998

7 Cloth Strobel M2 31123.35

8 Laminated Fabric M2 35434.56

9 Eyelets PCS 17224484

10 Laces Pair 657079

11 Boxes PCS 718083

12 Cartons PCS 61276

13 Other Chemicals Kgs 16946.11

14 Foam PU M2 9378.41

15 Insole Pair 370506

16 T P Sheet M2 4504.20

3.7 WATER REQUIREMENT

The requirement of makeup water including domestic & Agriculture purposes will be 50 KLD. The

requirement will be met from ground water. Permission for the same will be obtained from concerned

authority.

3.8 POWER REQUIREMENT

Total power required for the proposed project will be 425 KVA, which will be sourced from State

Electricity Board & D.G. set for emergency.

3.9 SOLID WASTE GENERATION AND MANAGEMENT

Type of waste Quantity Mode of Disposal

Leather Upper waste 1200 Pairs/ annum Sold to local market

Burnt oil from DG 0.360 MT/ Year Sold to Authorized recycler

Waste from Polyol+ Isocynide 0.010 MT/Year Sold to local market

Adhesive (Latex, Neufix and Rubber Adhesive)

21.66 Kg/Year The left over adhesive with container return to Supplier/Manufacturer.

Empty barrels 0.450 MT/Year Sold to Authorized recycler

Cloth Strobel 300 m2/Year Sold to local market


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4. SITE ANALYSIS

4.1 CONNECTIVITY

The site is well connected to NH-73 at distance of 0.4 Km in East direction. Churiyala Railway Station is

8.2 Km away in south west direction. Dehradun Airport is 45 Km away in north east direction from the

site. The site is well connected with communication facilities like telephone, fax, and wireless and as

such, no constraints are envisaged in this aspect as the Tehsil and District headquarters are near to the

site.

4.2 LAND FROM LAND USE AND LAND OWNERSHIP

This is an existing Industrial area and Modernization will be within the existing area.

Table 4.1: Land Use Pattern

S.No. LAND USE AREA (M2) PERCENTAGE (%)

1. Green Belt 16455 60.95

2. Road Paved Area 2034 7.53

3. Rooftop Area of buildings/shed 8511 31.52

Total 27000 100.00

4.3 TOPOGRAPHY

The topography is undulating in the northern part and more or less plain towards south. The altitude

ranges from 869 to 232 m. In the vicinity of Siwalik Hills, the gradient is steep. Geomorphologically,

Hardwar district can be divided into four geomorphic units. These are flood plain, lower piedmont plain,

upper piedmont plain and structural hills. The flood plain area is relatively flat, low lying and adjacent to

Solani River. It comprises unconsolidated, coarse to fine sand with silt and clay. The area is repeatedly

inundated during the floods. The lower piedmont plain is flat to undulating with gradient towards

southwest having micro relief. The sediments vary from fine clastic to coarse clastic manifesting in

variable runoff and infiltration.

Table 4.2: Environmental Settings of the Area

S. No. PARTICULARS DETAILS

1. Nearest City Nearest Town:-Bhagwanpur, 1.9 Km Haridwar (District Headquarter), 35.5 Km, E.

2. Nearest National Highway NH-73 at distance of 0.4 Km in East direction

3. Nearest Railway station Churiyala Railway Station, 8.2 Km in SW

4. Nearest Airport Airport: Dehradun Airport, Dehradun 45.00 Km, NE

5. .

National Parks, Wild Life Sanctuaries, Biosphere Reserves, Tiger/ Elephant Reserves, Wildlife Corridors etc. within 10 km radius

There are no such important or sensitive areas within 10 Km area of the unit.


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6. Reserved Forests (RF) / ProtectedForests (PF) etc. within 10 Km. radius

No Reserved Forests (RF) / Protected Forests (PF) etc. within 10 Km. radius

7. River / Water Body (within 10 km radius)

Solani River -2 Km in East (Seasonal River) Ganga River - 33 Km in EES.

8. Inter-state Boundary Interstate boundry of Uttarakhand and Uttar Pradesh at distance of 5.4 Km in NW.

9. Seismic Zone The area falls in Zone IV, according to the Indian Standard Seismic Zoning map.

10. List of Industries Attached as Annexure 3.

(v) Existing Infrastructure

Proposed project is an Modernization project. A shoe manufacturing unit already exists.

(vi)Climatic data from secondary sources

In Raipur, the climate is warm and temperate. The summers here have a good deal of rainfall, while the

winters have very little. The climate here is classified as Cwa by the Köppen-Geiger system. The average

annual temperature in Raipur is 23.7 °C. In a year, the average rainfall is 1170 mm.

(vii) Social Infrastructure available

There are primary schools, dispensaries, small hospitals, places of worship in nearby area of the project

site.


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5. PLANNING

i) Planning Brief:

This is an existing Shoe manufacturing plant. The land is owned by M/s Liberty shoes Limited Land use

has been converted accordingly.

ii) Population Projection:

As discussed previously, 350 people are likely to be employed after commissioning of the Modernization

project.

iii) Land Use Planning

Total Plant area is 27000 m2 Proposed Modernization Project will be set up in the Premises. No

additional land will be required. About 60 %(i.e. 16455 m2) of the total project area is being covered

under green belt & plantation in order to reduce dust & noise pollution levels & to increase aesthetic

beauty of the area.

(iv) Assessment of infrastructure demand (Physical & Social)

M/s Liberty Shoes Limited has assessed the demand of infrastructure (Physical & Social) in nearby area

of the plant site and development activities are being undertaken under corporate social responsibilities

program for rural development initiatives for the upliftment of the nearby communities from time to

time.

(v) Amenities/Facilities

M/s Liberty Shoes Limited has constructed dispensary, canteen etc for the permanent and contract

employees.

M/s Liberty Shoes Limited will develop the Amenities/Facilities in nearby area of the plant site as per

requirement of local people of the nearby area under corporate social responsibilities programme.


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6. PROPOSED INFRASTRUCTURE

(i) Industrial Area (Processing Area)

No additional infrastructure will be required for the proposed Modernization project as the proposed

project will be set up in the existing plant premises.

(ii) Residential area (Non Processing area)

Residential colony is not proposed for this project. The local labor will be preferred to provide

employment opportunities.

(iii) Green Belt

Greenbelt is developed in 60% of the total area of the proposed project.

(iv) Social Infrastructure

Proposed project will result in growth of the surrounding areas by increased direct and indirect

employment opportunities in the region including ancillary development and supporting infrastructure.

(v)Connectivity

The site is well connected with communication facilities like telephone, fax, and wireless as such, no

constraints are envisaged in this aspect as the Tehsil and District headquarters are near to the site.

(vi)Domestic water

17.5 KLD water will be required for domestic purpose.

(vii) Sewage system

Sufficient and suitable toilet facilities of proper standard and hygiene have been provided. Domestic

waste generated will be treated in the proposed STP.

(viii) Industrial waste management

Type of waste Mode of Disposal

Leather Upper waste Sold to local market

Burnt oil from DG Sold to Authorized recycler

Waste from Polyol+ Isocynide Sold to local market

Adhesive The left over adhesive with container return to Supplier/Manufacturer.

empty barrels Sold to Authorized recycler

Cloth Strobel Sold to local market

STP Treated water Used for Horticulture after treatment

(vii)Power requirement and source

The power required for the proposed project will be 425 KVA, which will be sourced from State Electricity

Board & D.G Set (for emergency).


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7. REHABILITATION AND RESETTLEMENT (R & R) PLAN

Proposed Modernization will be done within the existing plant premises. No additional land is required

for proposed Modernization project. Therefore there will not be displacement of people and hence

Rehabilitation & Resettlement is not applicable.


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8. PROJECT SCHEDULE AND COST ESTIMATES

(i) Likely date of start of construction and likely date of completion

The project has already started manufacturing of Sole by PU injected technology.

(ii) Estimated project cost along with analysis in term of economic viability of the project.

Total cost of the Project: Rs. 2896.47 Lakhs (Existing & Modernization)

Cost for Environment Protection Measures: Rs.25.00 Lakhs (Capital Cost)

Cost for Environment Social Responsibility: Rs. 5.00 Lakhs/year

Cost for OH&S: Rs. 2.00 Lakhs/year.

Table 8.1: Cost of Project

Sl. No. PARTICULARS AMOUNT (Rs. In Lakhs)

1 Land 330

2 Civil Cost 705.86

3 Plant & Machinery 1614.61

4 Utilities 246

Total 2896.47


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9. ANALYSIS OF PROPOSAL

Proposed project will result in growth of the surrounding areas by increasing direct and indirect

employment opportunities in the region including ancillary development and supporting infrastructure.

Special emphasis on Financial and Social benefits will be given to the local people in the area.

Development of social amenities will be in the form of medical facilities, education to underprivileged

and creation of self help groups.

Business opportunities for local community will be available like, maintenance & house-keeping contract

work.

PRE-FEASIBILITY REPORT · 2016-11-14 · M/s Liberty Shoes Limited Pre-Feasibility Report...

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Transcript of PRE-FEASIBILITY REPORT · 2016-11-14 · M/s Liberty Shoes Limited Pre-Feasibility Report...