This business idea focuses on the production and marketing of leather belts, which are essential accessories made from cowhide or other animal skins. Leather belts serve both functional and decorative purposes, supporting trousers or other apparel while adding style to an outfit. With a high market demand and wide usage among people wearing trousers, leather belts offer a profitable business opportunity.

Production Capacity

The production capacity of leather belts depends on the materials and equipment used in the manufacturing process. The proposed production plan involves 300 working days with a single shift of 8 hours per day, targeting the production of 1,000 belts per day. This translates to an annual production capacity of 312,000 leather belts.

Technology and Process Description

The manufacturing process involves the use of various machines and tools, including strap-cutting machines, stitching machines, riveting machines, punching machines, and other working tools. The process includes strap cutting, stitching, riveting, coloring/dying, pressing designs, fixing fasteners/buckles, and punching to create the finished leather belts.

Scale of Investment, Capital Investment Requirement & Equipment

This business idea is suitable for small-scale investment, and the capital investment required depends on the desired output. Manufacturers can scale their investments based on their target production volume and market demand. The necessary equipment and machinery can be acquired from local hardware shops, while raw materials are sourced locally.

General Costs (Overheads)

To evaluate the financial aspects of the business, it is important to consider general costs and overheads. Production costs are estimated for 312 days per year, with a daily capacity of producing 1,000 leather belts. Depreciation is assumed based on a 4-year write-off period at a rate of 25% per year for all assets. Direct costs include materials, supplies, and other expenses directly related to the production process. A production month is assumed to have 26 workdays.

Market Analysis

Leather belts have a wide market both domestically and internationally due to their good quality. The demand for leather belts remains consistent, making them a popular accessory among consumers. By manufacturing high-quality leather belts, entrepreneurs can tap into this market and cater to the growing demand.

Conclusion

Investing in the manufacturing of leather belts in Kenya presents a promising business opportunity. With a reliable supply of raw materials locally and the availability of necessary equipment, entrepreneurs can produce high-quality leather belts that meet market demands. This venture not only offers profitability but also contributes to the growth of the fashion industry and provides employment opportunities.