14 Nov 2016 160709700Z0QP0QORPFR

M/s Liberty Shoes Limited Pre-Feasibility Report
Manufacturing of sole with direct injection at

Village: Raipur, District: Haridwar, State: Uttrakhand
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 18000 Pairs per day
Shoes
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 16455 m2.i.e.approx.60% of total plant area has already
(ha) 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 NH-73 at distance of 0.4 Km in NW
/State Highway
Nearest Railway station Churiyala Railway Station,8.2 Km in SW
Nearest Airport Dehradun Airport,Dehradun 45 km,NE
National Parks, Wild Life None, within 10 km radius.
Sanctuaries, Biosphere
Reserves, Tiger/ Elephant
Reserves, Wildlife Corridors
etc.within 10 km radius
Reserved Forests (RF) / None, within 10 km radius.
Protected Forests (PF) etc.
within 10 Km. radius
River / Water Body (within 10 Solani River (Seasonal River) – 2 Km in East
km radius)
6 Cost Details
Total Cost of the Existing & 2896.47 Lakhs
Modernization Project
Cost for Environment 25.00 Lakhs
Management Plan
Total Water Requirement 50 KLD
(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 Kgs 334733.75
& Polyol) + Additive
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 21.66 Kg/Year The left over adhesive with container
(Latex, Neufix and Rubber Adhesive) 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 There are no such important or sensitive areas within 10 Km
Sanctuaries, Biosphere area of the unit.
Reserves, Tiger/ Elephant
Reserves, Wildlife Corridors

. etc. within 10 km radius 26 | P a g e
6. Reserved Forests (RF) / No Reserved Forests (RF) / Protected Forests (PF) etc.
ProtectedForests (PF) etc. within 10 Km. radius
within 10 Km. radius
7. River / Water Body Solani River -2 Km in East (Seasonal River)
(within 10 km radius) 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.
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M/s Liberty Shoes Limited Pre-Feasibility Report

Manufacturing of sole with direct injection at

Chapter Particulars Page No.

2. Introduction of the Project 17

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

8. Project Schedule & Cost Estimates 31

S.No. Particulars Details

2. INTRODUCTION OF THE PROJECT

1. Adesh Kumar Gupta

2. Mr. Ashok Kumar

Demand- Supply Gap & Imports vs. Indigenous production

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

Figure 3.1 Location map of Project

Figure: 3.2 Key Plan of project Site

Figure: 3.3 Layout Plan of project Site

3.2 SITE ALTERNATES

3.5 MANUFACTURING PROCESS:

3. STROBLE AND MOULDING (PRE SOLING)

3.6 RAW MATERIAL REQUIREMENT:

3.7 WATER REQUIREMENT

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

Reserves, Wildlife Corridors

(v) Existing Infrastructure

(i) Industrial Area (Processing Area)

(vii)Power requirement and source

7. REHABILITATION AND RESETTLEMENT (R & R) PLAN

8. PROJECT SCHEDULE AND COST ESTIMATES

Table 8.1: Cost of Project

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