DEVELOPMENT BANK OF ETHIOPIA

APPLIED RESEARCH DIRECTORATE

RAW DATA ON LEATHER SHOES MANUFACTURING AND MARKETING

Prepared By:

Mekonnen Fekadu loan Officer

Anteneh Beziye Sr. loan Officer

Revised By:
Anteneh Mulugeta Team Manager
Million jarso Technical Team Manager

Approved By Commodity and market study Review and Approval Committee

September, 2023

Table Of Content
s

lists of Tables.....................................................................................................................iii

lists of Figures...................................................................................................................iv

1. Introduction............................................................................................................1

1.1 BACKGROUND..........................................................................................................1

1.2 OBJECTIVE...............................................................................................................1

1.3 METHODOLOGY.......................................................................................................1

1.4 SCOPE AND LIMITATION...........................................................................................1

2. Product Description................................................................................................2

2.1. DEFINITION..........................................................................................................2

2.2. CLASSIFICATION..................................................................................................2

3. Raw Materials and Inputs Data...............................................................................4

3.1. MAJOR RAW MATERIALS FOR LEATHER FOOT WARE...........................................4

3.2. ACCESSORIES MATERIALS....................................................................................4

3.3. PACKAGING MATERIAL........................................................................................5

3.4. SUPPLY, SOURCE AND DEMAND OF MAJOR RAW MATERIAL................................5

3.5. Demand For Raw Material..........................................................................................6

3.6. MARKET ARRANGEMENT OF RAW MATERIAL AND INPUT............................................7

3.7 Raw Material Price.......................................................................................................8

4. Footwear Production and Technology Selection....................................................9

4.1. PROCESS OF SHOE MANUFACTURING.................................................................11

4.2. LIST OF MACHINERY & EQUIPMENT REQUIREMENT..........................................40

5. market data............................................................................................................44

5.1. MARKET SEGMENTATION...................................................................................44

5.2. WORLD MARKET................................................................................................44

5.3. ETHIOPIAN MARKET...........................................................................................46

5.4. MARKET ARRANGEMENT AND STRATEGY..........................................................48

5.5. CURRENT PRICE AND PRICE TREND....................................................................49

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6. problemsand key success factors..........................................................................49

6.1. PROBLEMS AND CONSTRAINTS..........................................................................49

6.2. SUCCESS FACTORS.............................................................................................49

7. parameters, technical coefficients and assumptions.............................................50

7.1. BASIC ASSUMPTION...........................................................................................50

7.2. REVENUE ESTIMATION.......................................................................................50

table 21: raw material /quantity consumed for cementing- sport shoes...........................56

7.3. INVESTMENT COST.............................................................................................57

7.3.1. machinery and equipment.............................................................................57

7.3.2. vehicles.........................................................................................................57
7.4. OPERATIONAL EXPENSES...................................................................................58

7.4.1. current price of major raw materials.............................................................58

7.4.1. current price of major raw materials used for sole manufacturing...............58
7.4.2. current average price of auxiliary materials.................................................59
7.4.3. current average price of packing materials...................................................60
7.4.4. uniform & cloths...........................................................................................60
7.5. OVERHEAD EXPENSES........................................................................................61

table 27: fuel consumption................................................................................................61

7.6. INSURANCE........................................................................................................62

7.7. WORKING CAPITAL............................................................................................62

8. Reference..............................................................................................................63

LISTS OF TABLES

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Table 1: Source of raw material........................................................................................10
Table 2: Production trend of leather upper and sole.........................................................11
Table 3: Imported quantity of Leather Upper and Sole (Ton)..........................................11
Table 4: Production performance of end-users that consumes leather (2013-2017)........12
Table 5: Export of leather Upper and sole........................................................................12
Table 6: Stages in the Production of Leather/Canvas/ Synthetic-Upper Cement Shoes
with Cemented-On Unit Soles..................................................................................18
Table 7:Stages in the Production of Leather/canvas/synthetic-Upper, Cement-Lasted
Shoes with Directly Moulded-On Soles...................................................................34
Table 8: Stages in the Production of Leather-Upper, Tack-Lasted Shoes with Stitched-
On Leather Soles.......................................................................................................36
Table 9: Equipment Specifications for leather-upper cement lasted shoes with
cemented-on unit soles (Type-1)..............................................................................45
Table 10: Equipment Specifications for Leather-Upper, Cement-lasted Shoes with
directly Moulded-On Soles (Type 2)........................................................................46
Table 11: Equipment specification of Leather-upper, tack lasted shoes with machine-
sewn leather soles (Type-3)......................................................................................47
Table 12: Auxiliary machineries and equipment’s required for all type of shoes............48
Table 13: World top ten Import of Leather Footwear under HS Code of 640420(In pairs)
..................................................................................................................................49
Table 14: World top ten export of Leather Footwear under HS Code of 640420 (In pairs)
..................................................................................................................................50
Table 15: Projected Population (In '000s) Of Ethiopia (2007-37)....................................51
Table 16: Ethiopia leather footwear export performance by product type (In pairs).......52
Table 17: Lists of Operational Factories with their production capacity.........................52
The production trend of Leather Footwear is obtained from Central Statistics Agency
(CSA). Table 18: Domestic production of leather shoes and boots (2013 – 2017). .53
Table 19: average price of products..................................................................................56
Table 20: Basic components of leather footwear and Raw material /Quantity
consumedper pair of shoes........................................................................................57
Table 21: Raw material /Quantity consumed for Cementing- sport shoes.......................62
Table 22: Type of required vehicles and their respective purpose...................................63
Table 23: price of major raw materials.............................................................................63
Table 24: average price of major raw materials...............................................................64

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Table 25: Average price of auxiliary materials and inputs...............................................64
Table 26: average price of packing materials..................................................................66
Table 27: Fuel consumption.............................................................................................67
Table 28: Insurance Charges (Rates)................................................................................68
Table 29: Working capital determination.........................................................................68

LISTS OF FIGURES

Figure 1: Anatomy of a shoe............................................................................................15

Figure 2: Exploded View of a shoe...................................................................................15
Figure 3: Stages in the manufacture of Type 1 footwear..................................................17
Figure 4: Swing Beam Press and Travelling Head Press.................................................20
Figure 5: Typical Work Flow during Preparation and Stitching......................................21
Figure 6: Types of stitching machines..............................................................................24
Figure 7: Alternative Cement-Lasting Sequences............................................................29

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 1. INTRODUCTION
1.1 Background
The manufacturing sector growth was higher than the growths’ of the other two sectors
due to the fact that the country is looking for the transformation of its economy to
industry. Though, the manufacturing sector of Ethiopia constitutes a small section of the
economy, it has shown significant growth and diversification in recent years.

DBE one of governmental financial institution established to provide financial support

for viable projects. In line with the newly vested responsibility by the management, the
Directorate avail raw data and information that facilitate financing of a given project on
leather footwear manufacturing.

This is a document which comprises consolidated basic raw data and information on
Leather Shoe manufacturing and marketing in the country.
1.2 Objective

The main objective of this document is to meet the expectation of the concerned units
and decision makers through provision of comprehensive and relevant raw data and
information; thereby enable them to make an appropriate decision.
1.3 Methodology
The document was prepared through collection of both primary and secondary data from
different organizations, concerned stake holders, browsing internet, reviewing an
appropriate publications. The main instruments for primary data collection were
structured questionnaire and interview with appropriate stockholders.
1.4 Scope and limitation
The document Focused on leather based footwear production including all types of shoes
that are produced using leather and leather products. The main limitation of the
document is Absence of historical price, both for raw material and products to trace
trend could also be mentioned as a limitation of the document.

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 2. PRODUCT DESCRIPTION
2.1. Definition
Leather Footwear is an item of clothing made by humans that covers and protects the
foot, including the soles of the feet. Leather footwear is made of tanned hide and skins. It
allows people to walk on the rough surfaces such as gravel roads without hurting their
feet. It consists of garments worn on the feet, for fashion, protection against the
environment, and adornment.

Shoes are a type of footwear that protects the foot and the soles of the feet. Shoe, outer
covering for the foot, usually of leather with a thick sole and heel, and generally
(distinguishing it from a boot) reaching not higher than the ankle. A shoe is an item of
footwear intended to protect and comfort the human foot while doing various activities.
Shoes are also used as an item of decoration

2.2. Classification
The major types of leather footwear classified based on product type as follows.

 Gents shoe
 Ladies
 children’s
 Safety shoe
 Military and worker shoe Military
 Sport shoe
 Sandals
 Gents shoe
The design of shoes has varied enormously through time and from culture to culture,
with appearance originally being tied to function. Dress shoes are made for people to
wear when they are wearing formula clothes such as a suit and tie. Dress shoes are
normally made from dark-colored leather that is shined using shoe polish. People
working in professions such as business, law and politics wear dress shoes. People
working in restaurants or retail stores may also wear dress shoes.

 Ladies Heeled footwear is footwear that raises the heel of the wearer’s foot
significantly higher than the toes. When both the heel and the toes are raised equal
amounts, as in a platform shoe, it is technically not considered to be a high heel;
however, there are also high-heeled platform shoes.

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 Safety shoe a pair of safety boots (also known as safety shoes) is personal protective
equipment for foot protection at work arena. It prevents from getting foot injuries
due to chemicals or even bad weather, sharp object edges, hot objects, wet slippery
surface, heavy objects falling, falling rolling objects, pinch points, rotary machinery
etc. Occupational Safety and Health Administration (OSHA) requires the employers
to assure that the employees use protective footwear while working in the areas
where there are dangers of foot injuries.

 Military and worker shoeare boots designed to be worn by soldiers. This boots are
worn by the soldiers during training, with soldiers who serve on tanks and tracked
vehicles, and also in jungle warfare or in hot, wet and humid environments. They are
made of hardened and waterproofed leather. Work shoes are designed for people
who work in construction or factory jobs. Work shoes often have a steel toe cover to
protect the person's toes. Work shoes are usually made of strong leather, to protect
the person's foot from sharp objects or dangerous chemicals.

 Sport shoe Sport footwear is an item of footwear designed for sports and worn when
we engaged on different kinds of sporting activities. There can be different styles of
sport footwear depending on the different kinds of sports i.e. athletic and
football .Athletic footwear is a name given for the footwear primarily designed for
sports or other forms of physical exercise. In recent years such type of footwear is
used for causal everyday activities. It is typically used for running. Football footwear
is an item of footwear worn when playing a football.
 Sandals are a type of footwear that consists of a covering for the sole of the feet and
straps or ties which hold the sandal onto the foot. Sandals are worn in warm
countries. Sandals are an open type of outdoor footwear, consisting of a sole held to
the wearer's foot by straps passing over the instep and, sometimes, around the ankle.
While the distinction between sandals and other types of footwear can sometimes be
blurry, the common understanding is that a sandal leaves most of the upper part of
the foot exposed, particularly the toes. People may choose to wear sandals for several
reasons, among them economy (sandals tend to require less material than shoes and
are usually easier to construct), comfort in warm weather, and as a fashion choice.

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 3. RAW MATERIALS AND INPUTS DATA
3.1. Major raw materials for leather foot ware
- Upper leather/Finished Leather
- Lining
- Sole (It vary according to the shoe type)
3.2. Accessories materials
- Textile Fabric
- Brush for p.u
- Counter
- Insole board
- Nails and tack
- Needle
- Nylon thread 40
- Nylon thread 60
- Primer sole cleaner
- Roughing ring
- Zipper
- Moccasin thread
- Rivet, metal trim /Ornament
- Eyelet
- Foam
- Shoe lace
- Silver/refill
- Steal shank
- Shank board
- Toe puff
- Toe steel for safety shoe
- EVA sheet
- Adhesives and glue
- Shoe polish/Cream
- Eroder
- Zelebet

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 3.3. Packaging material
- Shoe box
- Poly bag
- Tissue paper
- Plaster
- Carton box
Remark: Tissue paper and Poly bag are alternative packaging materials rather not used
simultaneously

3.4. Supply, source and demand of major Raw material

3.4.1. Source of raw material

Table 1: Source of raw material

SN Input Material Description UOM Availability of Material

Local Imported
1 Upper leather Sq.ft x
Leather lining Leather Sq.ft x
2
Cambril Sq.mt x x
3 Toe puff Sq.mt x
4 Stiffener (Counter) Sq.mt x
Collar foam Sq.mt x
5 Foam
Socks foam Sq.mt x
6 Reinforcement (interlining) Sq.mt x
7 Shank Board Sq.mt x
8 Shank steel Prs x
9 Insole (daban) Sq.mt x
10 Shank Board Sq.mt x
11 Out sole (TR/PU/PVC/TPR) Pr x x
12 Sewing threads Cone x
13 Eyelets Pcs x
14 Buckler prs x
15 Shoe Lace prs x
16 Elastic Mt x x
PU Kg x x
17 Adhesive Neoprene and Kg x x
Latex adhesive Kg x
18 Finishing Abrasive wax Kg x

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 Polish cream Kg x
Materials
Top spray Lt x
TISSUE X
PAPER Kg
Packaging SCOTCH TAPE MT X
19
Materials SHOE BOX PCS X
CARTON BOX PCS X
Source: Ethiopian Leather Development Institute

3.4.2. Supply of major raw material

 Domestic Supply of major raw material

Table 2: Production trend of leather upper and sole

Description 2018 2019 2020 2021 2022

Leather
Upper 60,774.00 11,527.00 50,043.00 454,055.00 -
Leather Sole - 13,671.00 59,807.00 - -
Source: Ethiopian Leather Development Institute

 Import of major raw material

Table 3: Imported quantity of Leather Upper and Sole (Ton)

Description Hs Uni
code t 2018 2019 2020 2021 2022
Leather upper 4113 Ton 0 0 4 1
Leather Sole 640620 Ton 842 1395 876 1916 1064
Source: ITC Trade map

3.5. Demand for raw material

3.6.1. Demand for Leather

The demand of finished leather arises from both local and foreign market. The major
demanders of finished leather in the domestic markets are leather products producing
industries i.e., existing leather footwear, leather garment, leather belts & bags, and other
leather goods using leather. In the following Tables 4, historical production data, which could
demand leather as major raw material over the past five years, and operational leather foot
wear producing firms with their respective performance tabulated.

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 Table 4: Production performance of end-users that consumes leather (2013-2017)

Description Unit 2013 2014 2015 2016 2017

Leather ('000 Sqr. 81,325 84,232 21,10 8,404 15,923
garment Ft)
Leather Shoes Pairs 2,473,27 3,371,75 4,610,43 38,789,3 4,582,99
and Boots 4 3 5 31 7
Source: CSA, Large and Medium Scale Manufacturing Reports

 List of operational leather foot wear producing firms and their respective
Capacity
Lists of operational leather foot wear producing firms with their respective performance
are depicted in the marketing part of this document

- Multiplier

A pair of shoes requires 3.5 square feet of finished leather (2 square feet for leather upper and
1.5 square feet for lining) and the average amount of wastage during cutting of pattern for all
finished leather producer industries (leather footwear, leather garment and leather goods) is
around 15 % of the total finished leather (Source: Previous leather foot wear commodity
study).

3.7. Export raw material

Table 5: Export of leather Upper and sole

Description Unit 2018 2019 2020 2021 2022

Leather 64061 Ton
2 25 0 0 22
upper 0
Leather 64062 Ton
6 3 2 2 1
Sole 0
Source: ITC Trade Map

3.6. Market Arrangement of Raw material and Input

The market arrangements follow these paths: some inputs are purchased from local
market exclusively and while others are purchased from international market through
agreement or negotiation with the global supplying companies. For international
purchasing process, there are several procedures from opening of LC (Letter of Credit)
to post clearing up on the delivery of ordered goods. The supplier of goods held on CIF
( Cost insurance and Freight) and the purchaser is entitled to cover all land insurance,

7
VAT (Value added tax), warehouse fee, in land transportation cost, transit charge and
custom clearing, post clearing charge, service charge and other cost which cover from
port to the factory gate.

3.7. Raw material price

Current purchasing price of raw material stipulated on the parameter of this document
though historical trend was not obtained during data collection.

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 4. FOOTWEAR PRODUCTION AND TECHNOLOGY
SELECTION
Before directly go through the production process of footwear it is essential to discuss
about the component parts (Anatomy) of shoes.
The footwear can be manufactured by a number of parts and components, but every time
we can differentiate these functions into two parts:-
 Shoe uppers (upper parts and components)
 Shoe bottoms (bottom parts and components)
A shoe consists of sole, insole, outsole, midsole, heel, and vamp (upper). They are the
basic parts of a shoe that are mostly included in all types of shoes. Other parts of a shoe
are lining, tongue, quarter, welt and backstay. These parts are included as per the design
of the shoes.
i. Sole: The exterior bottom part of a shoe is the sole.
ii. Insole: The interior bottom of a shoe, which sits directly beneath the foot, is its
insole. They can be removable and replaceable too. In some of the shoes, extra
insoles are often added for comfort, health or other reasons, such as to control the
shape, moisture, or smell of the shoe.
iii. Midsole: The layer that lies between the sole and the insole for shock absorption
is the midsole. Some special shoes, like running shoes have other materials for
shock absorption, that usually lie beneath the heel where one puts the most
pressure down. Materials used for midsoles depend on the shoe manufacturers.
Some shoes can be made even without a midsole.
iv. Heel: The rear part at the bottom of a shoe is the heel. It supports the heels of the
feet. Heels of a shoe are often made from the same material as the sole of the
shoe. It can be high for fashion purpose or for making a person look taller. They
are also flat for comfort and practical use.
v. Shank - part of sole under arch of foot
vi. Vamp or upper: The upper part of a shoe that helps in holding the shoe onto the
foot is the vamp or simply called the upper. This part is often embellished or
given different styles to make shoes attractive. Various visible parts of upper
(and also on the upper) are:

The Quarter - member of the 'back part' of the shoe, horseshoe shaped piece of
leather, cradles heel of foot

9
Tongue - leather flat under laces
Vamp - technically whole forepart of shoe upper, but more commonly top
surface of the ball
Toe Cap - reinforcement piece over toe of shoe
Counter - reinforcement for back of shoe, stiffened fiber material, shaped to
contour to sides and back of heel, helps to keep the shape of the shoe
Sock Lining - covering all or part of the top surface of the insole

Figure 1: Anatomy of a shoe

Figure 2: Exploded View of a shoe

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The different types of footwear, which are based on the Technological Process of the
Shoe Bottom Assembly, to be discussed here are:

Type 1: Leather/Textile/Synthetic -Upper, Cement-Lasted Shoes with Cemented-on

Soles,
Type 2: Leather/Textile/ Synthetic -Upper, Cement-Lasted Shoes with Moulded-on
Soles,
Type 3: Leather/Textile/ Synthetic - Upper, Tack-Lasted Shoes with Stitched-on
Leather Soles,
4.1. Process of Shoe Manufacturing
In footwear manufacturing industries it is common to see the following tasks besides the
major activities.
I. Product Development
The development is the process of designing new styles of shoes or adapting existing or
previous ones and then specifying the materials and components, detailing the materials
and processes to be followed in order that the styles of shoes can be produced in bulk
and then satisfies the needs of consumer when purchased.

II. Designing & Pattern Cutting

According to the samples of shoes, design or requirement of the customer the model last
is selected by the shoe designers then patterns are developed and sample shoe is
manufactured in the sampling room under the supervision of the shoe designer by the
craftsmen/artisan. When the samples are approved by the buyer/customer the patterns are
graded by hand or machines in required sizes and handed over to the production division
for manufacturing the shoes. The designers also specify the materials required for
making the shoes.

4.1.1. Leather/Canvas/Synthetic -Upper, Cement-Lasted Shoes with

Cemented-on Soles
Stages in the manufacture of this type of shoe are shown in Figure 3. In summary,
manufacture first involves cutting out the upper components from
skins/Canvas/Synthetic material and the linings and insoles from leather or fabric and
man-made sheets. Next, the edges of the upper components are tapered, or skived, to
reduce the bulk of seams. The eyelets are then inserted in lacing styles and the various
upper components are stitched and cemented together.

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 Figure 3: Stages in the manufacture of Type 1 footwear

The stitched upper of a plain lacing style is shown at “I”. The insoles are then attached
temporarily to the bottom of the last by tacks, and the heel stiffeners and the toe puffs
(which respectively help shape the backs and toes) are located. At “II”, a toe puff, a heel
stiffener, and an insole ready for assembly with the upper on a wooden last, are
illustrated. Cement lasting involves stretching the edge of the upper round the last
bottom and attaching it to the insole bottom with cement. After removing the tacks
holding the insole to the last, the shoes are conditioned, the shanks which stiffen up the
waist of the shoe are attached to the insoles, and the sole units are stuck on to the bottom.
“IV “shows a shank and sole unit, and “V” a finished shoe after the removal of the last.
The final manufacturing stages involve cleaning, inspecting and packaging.

Table 6: Stages in the Production of Leather/Canvas/ Synthetic-Upper Cement Shoes

with Cemented-On Unit Soles

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 Production Stages Op. Operations Major Materials
Ref
Upper-cutting 1. Cutting upper components Skins/Canvas/Synthetic
and lining materials
Upper preparation 2. Leather splitting
3. Lining marking
4. Stitch marking
5. Hole punching
6. Sock embossing
7. Skiving
8. Edge folding and cementing
Upper stitching 9. Stitching of uppers Threads, tapes
Stitched Upper 10. Seam reducing
finishing
11. Taping Tapes
12. Eyelet reinforcing
13. Punching and eyelet Eyelets
insertion
14. Temporary lacing String
15. General fitting and puff Trim, puffs
attaching
16. Upper trimming
Bottom component 17. Insole preparation Insole sheeting
preparation
18. Sole cementing and Sole units
Drying
Making 19. Insole tacking
20. Stiffener insertion Heel stiffeners
21. Upper conditioning
22. Cement lasting
23. Tack removal and
inspection
24. Heat setting
25. Bottom roughing
26. Shank attaching Shanks
27. Bottom cementing
28. Bottom filler insertion Felt
29. Sole laying
30. Last removal
Upper finishing 31 Upper finishing operations Packing materials
and packing

4.1.1.1. Uppers Manufacturing

The manufacture of shoe uppers is wage intensive and requires almost three quarters of
the manufacturing time allotted for the entire shoe. For each stitching process, sewing
machine factories developed special machines or additional attachments for stitching the

13
upper leather, lining leather and thread used. So that the upper, lining and reinforcement
components are stitched for making the shoe uppers.
A. Cutting Uppers

1) Cutting upper components

The way in which upper components are cut, or 'clicked' can have a considerable
influence on the cost, appearance, comfort and wear resistance of finished shoes and on
how well they retain their shape in use. Since inefficient cutting practice results in
increased production cost, it is important that they are cut in the most economical
manner, thus providing cut components of the required quality while minimizing the
amount of waste leather. Cutting can be manual in those small scale footwear industries
and mechanized at those medium to large industries.
Mechanized cutting should be used in some of the operations in medium to larger scale
footwear industries. It commonly uses cutting presses and strip steel knives cold bent to
the shape of the pattern. Some high speed automatic processes using lasers or water jets
are available for cutting stacked man-made materials but such equipment is only
economical if output volumes are very large.
Basically two types of cutting machines are in use
1. Swinging head cutting machine
2. Beam head cutting machine
a. Fixed beam head
b. Travelling beam head

Normally the swinging head cutting machines are used for cutting leather and Beam
head cutting machines are used for cutting synthetics and Fabric.

14
 Figure 4: Swing Beam Press and Travelling Head Press

B. Upper Preparation
Manufacturing leather/Canvas/Synthetic uppers involves preparation, stitching and
finishing operations. They consist of a relatively large number of short operations
ranging from visual inspection at a bench to assembling the various components on a
stitching machine. In terms of work content, stitching is usually the most important of
the three types of operations involved, in upper manufacture. Usually, a greater
proportion of the workforce is engaged in stitching than in any other activity. Even in its
most capital-intensive form, stitching is still a labor-intensive process.
Figure 6 shows an example of the sequence of operations necessary to produce uppers
for an elaborate style of men's leather upper. The sequence of operations required to
prepare components prior to stitching and finishing may vary widely from style to style.
In large factories, each type of work may be carried out in a separate department and,
sometimes, stitching of different types of upper is divided between a number of
departments.

15
Figure 5: Typical Work Flow during Preparation and Stitching

16
 2) Leather Splitting
Cut leather components that are thicker than required or have uneven thickness due to
loose flesh adhering to their underside can be split on a band knife machine. The
machine has a continuous strip knife blade running horizontally between two large
rotating wheels using the principle employed in a band saw. The components to be
reduced are fed between a pair of feed rolls which move the work past the knife blade.
The whole area of the component is reduced to the pre-set thickness and the waste is
collected in a box.

 If the Footwear manufacturing enterprises do not find it necessary to invest in

band knife splitters (i.e. enterprises operating at lower scale of production) may
depend on other tanners to supply leather of the required thicknesses.

3) Lining Marking
It is common for details of each pair of shoes to be marked on the uppers. Marking helps
identify pairs of shoes at subsequent stages of manufacture, and facilitates the ordering
of repeats by trade customers. Details usually include style number, size, and width
fitting and last number. On unlined shoes, the information is sometimes printed on top of
the tongue, but in the majority of cases it is marked on the quarter linings.

Three techniques may be used for lining marking:

 Details may be written by hand with ball point pens if one wishes to convey an
expensive individual appearance,
 Use of an inkpad and rubber stamp,
 Specially designed stamping machines that can be mounted on a bench, are
available for large-scale production. These machines have stamping heads, and
use automatically dispensed foil embossing strips. The type is mounted on the
circumference of adjustable wheels.
4) Stitch Marking
Guide marks help stitching machinists to accurately overlap upper sections, and to
correctly position fancy stitches, buckles, eyelets and trims. Two techniques may be used
for stitch marking, depending on the adopted scale of production:

17
  Use of Press Cutting Knives: This method may be adopted for scales of
production up to 200 pairs per day per single shift.
 Treadle and Hand-Operated Marking Machines: For scales of production of
1000 pairs per day per single shift and higher, enterprises may use treadle and
hand-operated marking machines. These machines use a printing die consisting
of a sheet of pattern board to which raised metal or plastic ribs of the desired
seam configuration are attached.
5) Hole Punching (Perforating)
Some leather upper design styles require decorative perforations round the edge of toe
caps. Hole punching can be performed using Manual Punching machines.

6) Sock Embossing
Brand names and trademarks are usually embossed onto the plastic coated fabric or thin
leather socks that are cemented over the seat or the whole of the insole once the sole has
been lasted.
Semi-automatic embossing machines are available for this operation. Slower, manually
operated machines are less expensive but less convenient to operate.
7) Skiving
Skiving is the term used to describe the tapering required on the flesh side of some edges
of upper components made of leather/synthetic. The objectives of this important
operation are to permit easy assembly, good appearance and wearer comfort.
8) Edge Folding and Cementing
This operation may be carried out on unassembled components or on partly stitched
uppers.
C. Upper Stitching

9) Stitching of upper components

Stitching may be carried out by hand or by stitching machines. However, manual
stitching is rarely used in the construction of uppers except in the stitching of moccasins
for the production of decorative effects.
 Types of Stitching Machines

18
 o Post Bed Machine
o Twin Needle Flat Bed Machine
o Cylinder Arm Machine
Machines having flat beds are used for a wide range of work, such as stitching in
eyeletreinforcing strips and other work that can easily be stitched on a flat surface.
In post bed machines, the bobbin is located at the top of a vertical post below the needle.
The small working platform at the top of the post enables sprung seams to be constructed
more easily than on flat bed machines, since the material can hang down clear of the area
being stitched. Machines are available with a choice of the post located to the left or
right of the needle.

a) Post Bed Machine b) Twin Needle Flat Bed Machine c) Cylinder Arm
Machine
Figure 6: Types of stitching machines

Once uppers have been closed down the back seams, they can be stitched on cylinder
arm machines in which the bobbin is located at the end of a horizontal arm cantilevered
out from the main vertical column. Long boots are also closed on cylinder arm
machines. Special purpose treadle driven machines which are designed so that the work
can be fed in any direction during stitching are still popular for repair work in developed
countries.
 Moccasin Seams
Moccasin seams are variants of open seams and are most often used to attach moccasin
aprons to their vamp wings. They may be formed on an arm-type coarse stitching
machine or by hand. Covered moccasin seams, in which the edge of the apron is doubled

19
over the vamp, are more weather-proof than open seams, but hand stitching of the latter
takes less than half as much time as on the former.
D. Stitched Upper Finishing
Between stitching operations, and after stitching is completed, it is usually necessary to
perform several additional operations in order to prepare uppers for the lasting stage.
These operations are briefly described below:
10) Seam Reducing
The first operation is seam reducing. It involves cutting down the bulk of stitched back
seams by removing the excess material on the seam and then flattening what is left under
pressure. These two operations are combined when performed by special purpose seam
reducing machines.
11) Taping
As an alternative to a stitched silked seam, woven tape or paper tape can be cemented to
the inside of the closed back seam either with the aid of a special purpose machine or by
hand.
12) Eyelet reinforcing
13) Punching and Eyelet Insertion
There are wide varieties of techniques available for the punching of eyelet holes and the
insertion and clinching of metal eyelets.
For large outputs various machines may be used for punching and eyelet insertion. The
most elaborate machines punch a hole, insert and clinch an eyelet, then advance the work
to the position of the next eyelet where the cycle is repeated. Depending on the type of
shoe and the number of eyelets, these machines can process up to about 1,500 pairs per
shift.

14) Temporary Lacing

This operation can be carried out by machine or by hand. Temporary laces are tied
through the eyelets on lacing shoes so that the uppers maintain their shape during lasting.
When casual styles of shoe have elastic gussets rather than laces, fabric tabs are sewn in
at the same time as the gussets. The tabs are cut out after lasting.
15) General Fitting and Puff Attaching
When toe puffs are assembled to the upper at this stage rather than during lasting, they
may be attached with the help of a mechanical cement applicator or by hand. Decorative
trims may be stapled or stuck on after lasting to reduce the risk of their being damaged.

20
In large enterprises in developed countries there is a trend towards the use of puffs
consisting of cotton impregnated with thermoplastic resins which are heat printed onto
the upper and reheated before lasting to soften them. Thermoplastics are being
increasingly used in the same way on stiffeners of leather-board and fabric.
16) Upper Trimming
The final trimming of loose threads from the uppers is carried out by hand with scissors.
Although a flame is sometimes used to burn off threads, no powered machine is
available for this operation. Where the lasting allowance on uppers requires cementing
prior to lasting, the cement can be applied by brush or with the aid of an automatic
supply unit. If hot melt adhesives are used for cement lasting this operation is
unnecessary.
Linings and toe puff edges usually require trimming back to expose the lasting margin or
allowance of the upper. Machines are available which can carry out this simple operation
and to also roughen up the margin of the upper in preparation for cementing. However,
these two operations may also be carried out efficiently by hand.

E. Bottom Component Preparation

Insole: The Insole is one of the most important prefabricated shoe bottom components
and requires last conformity, Shank stability, and a high degree of precision during
assembly. The Insole is inner sole of the shoe. It is next to the foot under the socks.
17) Insole Preparation
The operation includes the following sub-processes:
 Cutting
Insoles are cut to shape from sheets of leather board, cellulose board, blended strip or,
exceptionally, leather. Cutting can be done manually with knives and templates of the
required shape. Large enterprises often use heavy cast steelknives to cut several
thicknesses of board with one stroke of a mechanical beam press. A heavy
dutypress/ used to cut stacks of up to four boards at once, can produce 2,400 pairs of
insole blanks per shift. Swing arm mechanical presses, identical to those used for cutting
upper leather, can usually cut two thicknesses of insole material.
 Size Stamping

21
To enable the various sizes and widths of insoles to be identified, numbers and letters are
normally stamped onto them. This operation may be carried out with a stamping
machine or manually with stamps and a hammer.
 Seat Beveling
The edges of the back part of the insoles are beveled to help the fit of the upper round
the edge of the insole. This operation may be carried out either manually or with the help
of a machine.
 Slotting
Insoles for high heeled shoes may need a series of shallow slots cut across the undersides
of their foreparts to assist flexing. These slots may be cut by hand or with the help of a
rotary cutter.
 Insole Molding
The omission of an insole molding operation at this stage can adversely affect the quality
of the finished footwear. The operation involves shaping the insole into an exaggerated
copy of the last bottom contour. During lasting, the molded insole springs back to the
last contour. The objectives are to achieve a close fit between the last and the insole (and
thus prevent the insole from curving up round its edge during lasting) and to obtain a
good shape retention and appearance.
 Shank Grooving
Metal shanks can be laid in a groove specially cut into the insole and then riveted into
position. The groove is cut out before molding by hand or with a rotary cutter.

 Cementing
Insoles that will be attached to the lasting margin of uppers by means of contact adhesive
require to be cemented round their edges. Neoprene cement or pressure sensitive latex
adhesive is usually used. Cement dispensing machines are available or the operation can
be performed manually with a brush. Drying may be in air on a rack or in a heated
cabinet.

18) Sole Cementing and Drying

To prepare their surfaces for sole attaching adhesives, sole units made of PVC or
polyurethane is washed with solvents. Those made of resin rubber are scoured with wire
brushes, while units of leather to be cemented on can be roughened with needle sharp
saw toothed rotary cutters. Application of a synthetic rubber or polyurethane adhesive to

22
the upper surface of the sole unit can be done by brush or under pressure from a nozzle.
The cemented units are normally stored on wire racks while drying.
F. Making/Lasting

19) Insole Tacking

Insole tacking is one of several operations carried out before lasting, whereby insoles are
temporarily fastened onto the bottom of the last. This operation may be carried out
manually or with the help of special purpose Insoletacking machines.
At high levels of output, the use this machine may be justified. In some systems, steel
studs are permanently fixed in the bottom of the last, and insoles are pushed onto them
by a machine. Although expensive, this approach has the advantage that tacks cannot be
inadvertently left in the shoe.
20) Stiffener Insertion
Where stiffeners do not have to be inserted immediately before lasting, and there is a
sufficient volume to justify the operation being separated from lasting, heel stiffeners
may be manually placed into the pocket between the quarter lining and the quarter. At
this point, French chalk may be applied to the seat of the upper, and last slip paste may
also be applied to the toe of the last. Both substances assist in the removal of the last
from the lasted shoe.
21) Upper Conditioning
The absorption of moisture by leather uppers before lasting, and their subsequent drying
after lasting greatly enhance the shape retention properties of leather uppers. But
synthetic upper materials do not absorb water. They may therefore be heated either with
or without moisture prior to lasting and then dried in the normal manner after lasting.
A variety of moisture conditioning techniques are available. For small scales of footwear
production water mixed with a soapy wetting solution may be sponged on the uppers.
For the same scales, a more satisfactory result may be obtained if the upper are
suspended over a tray of boiling water so that steam permeates the leather. The
introduction of this relatively simple and inexpensive system can markedly improve
appearance and shape retention.
A method which is unlikely to be appropriate at the lower levels of production, but
which could be suitable for larger scale (1000 pairs per day and above), involves
suspending the uppers (until required for lasting) in a closed room where atomized water
droplets are sprayed at ambient temperature. This approach is unsuitable when

23
thermoplastic heel stiffeners and toe puffs requiring activation by heat before lasting are
used. In a more sophisticated version of this approach, the uppers may be placed in a
cabinet in which the temperature and moisture content of the air are controlled at
predetermined levels. In this case, uppers require spending a short period in the
conditioning cabinet.
22) Cement-Lasting
Although many systems of lasting are available, they all involve pulling the upper over
the last and fastening it over the bottom edge of the insole. Cement is now used in the
majority of lasted shoes but the whole shoe is not always cement-lasted since tacks may
be used to last the sides. A major benefit of cement-lasting a whole shoe is the
elimination of the risk of having a loose tack injuring the wearer. Figure 8 shows several
alternative lasting systems.

Figure 7: Alternative Cement-Lasting Sequences

Cement lasting can be accomplished either manually or with the help of mechanized
cement lasting machines. Manual cement lasting is generally inappropriate at high levels
of production. This operation is therefore carried out with the help of special purpose

24
machines at larger scales (200 pairs and above). A wide range of machines are available
for cement lasting foreparts, sides and seats. Machines are also available that combine
pairs of these operations. Consequently, there is a wide spectrum of complete systems
that can either toe or seat-last first.
a) Simple Lasting Machine
Lasting systems consisting of a pair of manually powered machines are available. One
operator using the two machines can generally cement last a shoe in less than two
minutes. In one such system, the upper is drafted onto the last and the forepart is secured
by impact adhesive to the insole on the first machine. In the second machine, wiper
plates sweep the lasting margin in over the insole. The wiper plates can be changed over
so that toes and seats can be lasted on the same machine.
b) High Output Lasting Machine
One type of high output lasting machine uses thermo-activated stiffeners. Before lasting
proper, the back parts containing the stiffeners are pre-heated and then moulded to shape
in special purpose machines off the last. During this operation the seat can be hot melt
cemented to the insole between the internal mould (which is chilled to accelerate setting)
and inflatable external seat supports. The last is then inserted into the upper and a tack
placed at the toe to hold it in position.

A simpler and less expensive version of this technique involves as a first step back
moulding and seat lasting on the last. The next step is to last the forepart. In
sophisticated machines, adjustable pincers grip the lasted margin of the upper and wipe it
over the bottom of the insole following the automatic application of hot melt adhesive.

In one widely used type of side lasting machine, the operator holds the shoe so that the
lasting margins on the side and in the waist are in turn fed through a pair of rollers. As
with other cement lasting techniques, the upper and insole can be pre-cemented or
immediately cemented manually, (prior to lasting) with the help of a hand gun.
Alternatively, the adhesive can be applied automatically during lasting.

A lasting unit consisting of a back-part moulding and seat lasting machine, a forepart
laster and a side laster with an operator on each machine, might be able to produce a
lasted shoe in approximately ten seconds.

23) Tack Removal and Inspection

Tacks inserted to temporarily hold the insole to the last are removed after lasting.
Usually hand held saw toothed tack lifters are used. For large scales of production, high

25
speed tack extracting machines are also available. The operator removing tacks may also
check on the quality of the lasting.
24) Heat Setting
Allowing uppers that were conditioned with moisture before lasting to dry naturally has
an important disadvantage: it increases the investment in work-in progress and the
number of lasts in circulation. It may also lead to the development of mildew and rust
stains may be caused by steel plates fitted to last bottoms. Artificial drying may therefore
be used in order to avoid the above problems. Infra-red and other forms of radiant heat
constitute one artificial drying source. However, they may result in uneven drying.
Blown air should, on the other hand, produce more satisfactory results. One expensive
method now available involves passing the shoes through a heating chamber on a
conveyor belt. In the first half of the chamber moist air is circulated at high speed to
stress-relieve the surface. The air circulating in the second half is hot and dry to remove
all moisture and set the upper firmly. Hot air blown from a hair dryer can carry out the
same operation.
25) Bottom Roughing
The object of this operation is to provide a good keying surface for the adhesive used to
attach the lasted margin of the upper to the sole unit. The operation removes the finished
outward facing surface of the upper material and flattens the pleats round the forepart
and seat.
For small scales of production, up to 200 pairs of shoes per day, small electric portable
drilling machines may be used. They are fitted with a wire brush or emery covered wheel
and may be clamped to a bench top. Some skill is necessary to ensure that a clean
"feather" edge is produced where the sole and upper meet.

A variety of similar machines working on the same principle as the electric drill
arrangement are available. Some of these are fitted with wide scouring bands and
powerful dust extractors.

For large production scales (1000 pairs and above), fully automatic roughing machines
are also available. They require the operator to simply fix the lasts carrying the shoes on
fixtures, and remove them once the bottoms have been scoured. The cost of these
machines is however high and they should not be adopted unless it may be shown that
they are more profitable than simpler machines.

26) Shank Attaching

26
Shanks not riveted to the bottom of the insole before lasting are attached at this stage.
They can be stapled in position with a manually powered or pneumatic powered staple
gun, or can be attached with adhesive applied by brush.
27) Bottom Cementing
A brush or cement applying machine can be used to spread adhesive onto the roughened
lasted margin on the bottom of the shoe. Cement applying nozzles fed from drums
pressurized by a hand pump via a flexible tube are available. The adhesive may be dried
naturally or by heat.
28) Bottom Filler Insertion
Pieces of felt or scraps of thick leather are attached to the elliptical area in the middle of
the forepart of the insole, and to the exposed part of the seat inside the lasting margin.
Usually, the operation is performed manually. The cement can be applied to one side of
the component with a manually fed, electrically powered machine.
29) Sole Lying
Before placing the sole unit on the shoe bottom, the adhesive on both surfaces must be
activated. This is often done by infra-red or quartz-halogen radiant heating.
The next step is to attach the sole unit to the shoe bottom. A number of techniques are
available for this operation.
Manual sole lying is often used by certain small enterprises. It consists of hammering
the units to affect adhesion after careful positioning of the components. Unless care is
taken, hammering may cut the upper at the feather edge.

Another technique consists in applying a steady pressure for an extended period of time,
so that the cement is allowed to permeate into the lasting margin. This technique is likely
to be superior to hammering. It may be adopted for scales of production up to 200 pairs
of shoe per day using manually operated machines that may exert pressures of over a
tonne. In this type of machines, the load is applied through a large hand wheel which, by
means of a reduction gear, raises and lowers a pair of hold-down posts under which the
lasted shoe sits. The sole unit is pressed into a hard rubber pad set in a metal box.

For larger scales footwear manufacturing enterprises, elaborate hydraulically powered

machines, which can apply loads of about three tones, are widely used. Less expensive
machines using compressed air to apply the load through a flexible rubber diaphragm are
also available.

30) Last Removal

27
Once the sole is attached, the last is removed or slipped from the shoe. This can be done
manually using a lasting jack to support the last, or with the help of a pneumatically
powered last-slipping machine. Whether lasts are slipped by hand or machine, top lines
and seams can be damaged if care is not taken. At this stage, the shoes are ready for
finishing operations.
G. Upper Finishing and Packing

31) Shoe Finishing and Packing operations

 Crease Removal: Crease removal is the first operation of the finishing stage. It
involves the removal of any creases on fine grained upper leathers. Various types of
machines may be used for this purpose.
Hot air treeing machinesproduce a blast of steam as well as one of hot air. They are
appropriate only at higher levels of output. These machines are available at various
levels of sophistication.
 Upper Repair: The next step is to repair damages to the surface of the upper
material. This may be done with the help of wax crayon to cover blemishes and with
cement to fix down cuts.
 Sock Insertion: A sock (which may have a backing pad of foam cemented to it) can
be cemented either manually, with a brush, or by passing it through an electrically
powered cement applying machine. The sock is then inserted into the shoe.
 Upper Dressing: The sequence of this operation includes the following:
o Cleaning of upper with a detergent, e.g. a proprietary cleaning fluid or a spirit
based solvent,
o Application of a creamy dressing by hand,
o Application of a liquid dressing with a sponge or a sprayer.
o An alternative to liquid dressing is the brushing of uppers. This may be done
with hand held brushes; bench mounted power drills fitted with mops, and
specially designed brushing machines.

 Lacing: In lacing styles, laces are inserted into the uppers by hand.
 Final Inspection and Packaging: Information on shoe styles and sizes are written or
printed on labels which are attached to packaging.

28
Shoe boxes can be assembled either on machines or cemented or stapled by hand. Shoes
rejected at the final inspection are returned to the repair section.

4.1.2. Leather/ canvas/synthetic-Upper, Cement-Lasted Shoes with Directly

Moulded-On Soles
The molding-on process occurs in a single operation. It is a development of the
vulcanizing method of forming a rubber blank by heat and pressure while bonding its top
surface to the shoe bottom.
The principal materials used for this type are Ethylene-Vinyl-Acetate
(EVA),Thermoplastic Rubber, Polyvinyl Chloride (PVC) and Polyurethane (PU).
Table 8 lists the manufacturing stages for this type of footwear. Operations unique to this
type are listed without asterisks and are discussed below.

Table 7:Stages in the Production of Leather/canvas/synthetic-Upper, Cement-Lasted

Shoes with Directly Moulded-On Soles

Production Stages Op. Operations Major materials

Ref
Upper cutting 1* Cutting upper components Skins and lining
materials
Upper preparation 2* Leather splitting
3* Lining marking
4* Stitch marking
5* Hole punching
6* Sock embossing
7* Skiving
8* Edge folding and cementing
Upper stitching 9* Stitching of uppers Threads and tapes
Stitched upper 10* Seam reducing
finishing
11* Taping Tapes
12* Eyelet reinforcing
13* Punching and eye-let Eyelets
insertion
14* Temporary lacing String
15* General fitting and puff Trim, puffs
attaching
16* Upper trimming
Bottom component 17* Insole preparation Insole board
preparation
Making 19* Insole tacking

29
 Production Stages Op. Operations Major materials
Ref
20* Stiffener insertion Heel stiffeners
21* Upper conditioning
22* Cement lasting
23* Tack removal and
inspection
24* Heat setting
25* Bottom roughing
26* Shank attaching Shanks
32 Scrim attaching Scrim paper
33 Heel core attaching Heel cores
34 Bottom solutioning
30* Last removal
35 Direct sole moulding on Sole raw materials
Finishing 31* Upper finishing operations Packing materials
and packing
Note: The operations marked (*) are discussed in the section dealing with leather-upper,
cement-lasted shoes with cemented-on soles.
1) Scrim Attaching (Operation Reference No. 32)
To prevent soling material from stocking to the insole and filler, it is necessary
sometimes to cement a paper scrim to the forepart of the lasted shoe so that its edge
overlaps the lasted margin. This paper scrim, which is pre-cut to be a little smaller than
the sole bottom, also prevents the plastic from forcing its way between the upper and
insole.
The equipment required for this operation is a cement pot, brushes and a lasting jack to
hold the shoe while attaching the scrim.

2) Heel Core Attaching (Operation Reference No. 33)

Heel core attaching is an unskilled cementing operation. Heel cores, also called filler
blocks, are often cardboard blanks. These cores are attached to the underside of the seat
before moulding and are buried in PVC during moulding.

Advantages - these cores speed up cooling, make the soles cheaper, lighter and reduce
their elasticity. Heel cores replace the seat fillers used on cemented-on sole shoes.

3) Bottom Solutioning (Operation Reference No. 34)

A polyurethane (PU) solution is applied to the lasting margin to ensure that the PVC
adheres to it. The following operation is last removal. It has already been dealt with in
Type 1 shoe manufacturing process.

30
4) Direct Sole Moulding-on (Operation reference No. 35)
The soling material, usually PVC, is supplied in bags of granules. The bags are loaded
into a hopper feeding a heating chamber. A revolving screw or plunger forces the
softened plastic through a nozzle into a cavity. This cavity's upper surface is formed by
the shoe bottom. During moulding, the shoes are mounted on last-shaped foot forms of
steel or aluminum. Average moulding stations can complete a full mould-on cycle in less
than three minutes.
An increasing number of footwear manufacturers in developed countries produce
directly injected molded-on soles of PU which has better wear resistance than PVC but
has only one third of its density.

The PU molding process is similar to that of PVC except that a hardener and a resin in
liquid states are injected into the mould. They react in the mould and expand into a
cellular structure which fills the mould cavity and solidifies. Small enterprises in
developing countries will probably find PU molding unattractive because the process is
relatively complex. Furthermore, the technical back-up from chemicals and equipment
suppliers may be inadequate and could be responsible for frequent disruptions of
production.

Processing stages after sole molding are the same as those used for type 1
footwear, namely finishing and packing. These operations are described there and need
not be further elaborated here.

4.1.2. Leather/Textile Fabric-Upper, Tack-Lasted Shoes with Machine-Sewn

Leather Soles (Type 3)
Table 8 shows the operation sequence that can be used to construct these shoes. The
operations marked by an asterisk have been dealt with in type 2 and are thus not
discussed below.

1) Insole preparation (Operation reference No. 36)

Insoles used on tack-lasted shoes required to be stouter than cemented insoles. The best
insole material for this type of shoes is leather. Leather insoles are cut in the same way
as leather soles, as described below. An often used substitute material is fiberboard.
Insoles made with this material are cut according to the same techniques as those
described for cemented-on soles. Insoles are further processed in the same way as
fiberboard and composition soles used in cemented-on sole shoes.
Table 8: Stages in the Production of Leather-Upper, Tack-Lasted Shoes with Stitched-On

31
Leather Soles

Production stages Op. Ref. Operations Major

materials
Upper cutting 1* Cutting upper components Skins and
lining
Upper preparation 2* Leather splitting
3* Lining marking
4* Stitch marking
5* Hole punching
6* Sock embossing
7* Skiving
8* Edge folding and
Cementing
Upper stitching 9* Stitching of uppers Threads and
tapes
Stitched upper 10* Seam reducing
finishing
11* Taping Tapes
12* Eyelet reinforcing
13* Punching and eyelet insertion Eyelets
14* Temporary lacing String
15* General fitting and puff attaching Trim, puffs
16* Upper trimming
Bottom component 36 Insole preparation Insole board
preparation
37 Sole Cementing
Making 38 Insole tacking
20* Stiffener insertion Heel stiffeners
21* Upper conditioning
39 Tack lasting
23* Tack removal, inspection
40 Bottom pounding
24* Heat setting
26* Shank attaching Shanks
41 Bottom cementing
28* Bottom filler insertion
42 Sole laying
43 Last removal
44 Sole stitching
45 Sole leveling
46 Seat nailing
47 Heel attaching Heels
48 Re-lasting
49 Heel trimming
50 Edge trimming
51 Bottom finishing
30* Last removal
Upper finishing 31* Upper finishing operations and Packing

32
Production stages Op. Ref. Operations Major
materials
packing materials
The operations marked with (*) are discussed in the section dealing with
leather/canvas/synthetic-upper, cement-lasted shoes with cemented-on soles.
2) Sole Cementing (Operation Reference No. 37)
The upper, flesh side of the soles can be cemented at this stage with a neoprene or a resin
based latex solution, and then dried.
3) Insole Tacking (Operation Reference No. 38)
Insole tacking is carried out in a similar fashion as for cemented-on sole shoes, except
that the last bottom has a steel plate over it which clenches the tips of the lasting tacks
back into the top surface of the insole. Holes are left in the plate at the seat, waist and on
the forepart so that insoles can be temporarily attached by tacks driven into the wood.
Some experience in placing the tacks is required since the holes in the plate cannot be
seen during the operation.

4) Tack Lasting (Operation Reference No. 39)

Although many shoes of this type are now lasted by other methods (e.g. cement-lasting
or combinations of cement-seat, tack-side and cement-forepart lasting), this section
describes techniques and equipment for tack-lasting the complete upper. Tack-lasting
combined with stitched-on soles results in stiff and rather inflexible foreparts. To
compensate for this, additional 'toe spring' is often allowed for in the last used for this
construction. Lasting is carried out either manually or with machine, both techniques are
elaborated below.
 Manual Lasting Techniques

Back Tacking: Footwear is usually hand tack-lasted with a round vertical steel peg, or
lasting jack, inserted into the socket on top of the last. In this position, the bottom of the
insole provides an upwards facing surface ready for tacking. Pincers, incorporating a
hammer head, similar to those used for cement-lasting, are normally used for this
operation. After lining up the back-seam, the upper is tacked to the seat of the insole by
one or two tacks.
Pulling Over: Any lining material must always be pulled tight before pulling on the
upper itself. Normally, the first lasting pull is straight over the toe. The pincers lever the

33
lasting allowance of the upper over the toe of the insole. The thumb of the free hand
holds the material while the pincers push a tack into position. The tack is then hammered
down. This is basically the method used to insert all tacks, although in some cases it is
necessary for the pincers to pleat and twist the margin to obtain a smooth feather-edge
line. When soles are to be stitched-on, tacks are placed well back from the insole edge to
leave room for the stitching. Tacks are inserted on either sides of the toe to stretch the
upper forward from the heel over the toe. The seat and forepart just ahead of the waist
are then tacked.
Seat Lasting: Strains are taken and tacks inserted alternatively at approximately 5 mm.
intervals round one half, and then the other half of the seat. Small pleats are produced
between each tack.
Toe Lasting: The same procedure as for seat lasting is also used for toe lasting. More
skill is generally required to remove puckers over the toe and to pleat the material neatly
than is needed for seat lasting.
Side Lasting: Tacks are generally spaced at about 10 mm. intervals down the sides.
Much less force is required for this operation than for lasting the seat and toe.
 Tack Lasting Machinery
A type of machine which is used for side and waist lasting by large-scale enterprises can
also be used to completely tack-last shoes. In these machines, the operator holds the
work up to the machine so that the lasting margin is gripped by a pincer. A knee
operated lever can twist the pincers to the left or right as required and a wiper holds the
margin while a tack is automatically driven. Simplified versions of these machines are
available for tack side-lasting.

5) Bottom Pounding (Operation Reference No. 40)

The lasting margins of stitched-on sole shoes do not need to be scoured. However, after
cutting off any excess material inside the tack line, the pleats around the seat and the toe
must be flattened. Special purpose machines are available but the operation can be
carried out with a hammer having a large, slightly-domed face. To avoid damaging the
feather-edge, the blows should be directed so that they have a slight inwards component.
6) Bottom Cementing (Operation Reference No. 41)
The purpose of this operation is to hold the sole against the shoe bottom during sole
stitching. This is done through the application of a latex solution usually applied by

34
brush. The soles can then be loaded onto racks where the cement dries naturally. (See
operation reference Nos 18 and 27 for Type 1 footwear).
7) Sole Laying (Operation Reference No. 42)
The object of this operation is to attach the sole to the shoe bottom by adhesive and to
form the sole round the lasted bottom so that they are in close contact during stitching. It
is important that leather-soles are mellow during this operation.

Sole presses identical to those described for attaching cemented-on soles can be used.
Alternatively, soles can be tacked or stapled in position with the fasteners positioned
near the edge of the channel. Thus, they can be avoided during stitching and will not
leave visible holes in the finished shoe once they are removed after stitching.

8) Last Removal (Operation Reference No. 43)

The methods available for last-removal were dealt with in connection with cemented-on
shoes. However, in this case, there is no sole to provide support to the bottom and the
lasts used are normally of the hinged type so that they 'break' at the waist. The use of
such lasts reduces the risk of damaging insoles, particularly when they are made of
fiberboard.
9) Sole Stitching (Operation Reference No. 44)

 Channel Opening
The channels round the edge of the soles are opened up at this stage. Machines are
available, but opening can be carried out by hand after the top surface of the lip has been
moistened with a sponge to increase its plasticity.

 Stitching

 Stitching Techniques
All stitching machines have a swiveling horn placed inside the shoe and through which
waxed thread is fed. The wax, which may be pre-heated, helps waterproof the sole. In
chain stitching machines, the needle is hook shaped so that it can catch the thread when
at the bottom of its stroke. It then pulls the loop through the layers of insole, upper and
sole on the upstroke. It then links the loop into the chain with the proceeding
loop.Considerable skill is required to keep stitches vertical and the line of stitching in the

35
bottom channel, particularly around the toe curve. After traversing from the waist round
to the other side of the sole, keeping about 3mm from the edge of the insole, the operator
cuts off any excess thread.

 Equipment
Although machines have been used in this operation for over a hundred years, they are
still expensive. Both chain stitching and lock stitching machines are available.
10) Sole Leveling (Operation Reference No. 45)
In this operation, the channel and lip are cemented, usually with brush applied latex.
After drying, the lip is moistened to soften it and is then rubbed down with a metal bar.
The shoes may require re-lasting before this operation, using a last smaller than the
making last. The metal bar should be rust proof since iron can leave rust stains on the
damp leather. Alternatively, this operation may be carried out with machines fitted with
a rotating indented wheel. These machines reduce considerably the time needed for this
operation.
To restore the curve of the waist, the shoe can then be mounted in a sole press with a
female mould to compress the layers of material on the shoe bottom. Special purpose
presses are available for this purpose whereby the shoe is mounted on a cast iron foot
form. It is then forced into a concave mould made from a non-corrosive alloy. Any press
with a force of about four tonnes which may be gradually applied may be used for this
operation.

11) Seat Nailing (Operation Reference No. 46)

The back of the sole is attached to the shoe by a semi-circle of nails driven from the
outside. The nails pass through the sole, the lasted margin of the upper and the insole and
are finally clenched on a flat topped iron horn on which the inverted shoe rests. The
operation can be carried out by hand or on a special purpose nailing machine.

Surplus material is then trimmed from the edge of the sole around the seat. This rough
rounding operation can be done manually with a knife. Alternatively, the excess material
may be ground away with an abrasive covered wheel or on a special purpose disc knife.
The wheel or the disc knife may be incorporated into a seat nailing machine so that both
operations are carried out simultaneously.

36
 12) Heel Attaching (Operation Reference No. 47)
When heels are built from stacked leather or leather board, they can be cut and built by
hand with nails. However, the best results are obtained if a heavy load is used to
compress the stack before nailing.

Since the shoes are un-lasted at this point, they can be attached by nails driven from
either inside or outside the shoe. Usually, the nail heads are on the inside of women's
shoes and on the outside of men's shoes.

The nails attaching the heel can be driven manually or by special purpose machines.
Heel attaching nails usually have rows of corrugations round them which helps provide a
firm grip. Top pieces can be nailed or stapled onto the heel.

13) Re-Lasting (Operation Reference No. 48)

In this operation, lasts are put back into the shoes. Hinged lasts smaller than the making
lasts are usually used to simplify their subsequent removal
14) Heel Trimming (Operation Reference No. 49)
The uneven edges of built heels can be smoothed and shaped by rough scouring on an
emery covered wheel. Alternatively, a special purpose cutting machine called a heel
parer can be used. The latter is preferred when heels with backward sloping concave
curves are required on women's shoes.

Heel paring machines are fitted with rotating cutters consisting of a pair of knives
shaped to the required contour. These cutters rotate at a very high speed. The top piece
and the sole top edge act as guides for the shoe on either side of the cutter blades during
paring.

15) Edge Trimming (Operation Reference No. 50)

The edge of the sole around the forepart is trimmed, back in preparation for the finishing
operation. The edge is moistened to aid the operation.

Excess sole leather can be removed manually with a knife. Alternatively, special purpose
machines are available. These machines have a guarded rotating knife. The operator
guides the edge of the upper past this knife.

16) Bottom Finishing (Operation Reference No. 51)

37
Unless soles and heels are prefinished, a substantial amount of work remains to be
carried out on them. The operations involved are described in some detail, since the view
that a consumer form of the quality of leather soled shoe is possibly influenced as much
by the finish on the sole as by that on the upper.

A comprehensive sequence of bottom finishing operations is described below.

Heel Scouring
This operation removes marks left after heel paring, and polishes the surface. Usually,
rough and fine grades of scouring paper are used. The work can be done by hand, or,
preferably with a rotating wheel fitted with a felt backing on which is placed the
scouring paper.

A number of machines, equipped with steel wheels that open into two halves to permit
the ends of the felt and paper to be gripped are available. Sometimes, felts and paper are
contoured to the heel shape and cut to a width that corresponds to the heel height. Square
heels require only flat papers and felts. These can be cemented to the circumference of a
wooden wheel, belt driven by a small motor.

Heel Dyeing
A spirit based dye of the required color is applied with a fine hair brush. Sometimes, a
wide brush is used for the heel and a narrow one for the top edge of the sole. Since the
heel fibres open when wetted by dye, a second coat containing a small quantity of filler
may be applied.
Fine Heel Scouring
Very worn fine scouring paper can be used at this stage to restore the surface roughened
as a result of swelling during dyeing.

Edge Inking
A soft toothbrush may be used to ink the top, flesh and surface of the sole next to the
upper. The ink has more filler than that used for dyeing. To avoid the inadvertent
application of ink to the upper, this operation is sometimes carried out before sole
attaching.

Edge Setting

38
This is an important operation since unset leather sole edges are very porous. Hand edge
setting involves applying melted stick wax or wax in an emulsion with water to the sole
edge. It is then rubbed with a pre-heated iron back and forth to polish and force the wax
into the edge. Often, the process is repeated to obtain the desired degree of smoothness
and water resistance. Flat edges can be set using any hard and smooth round object.

Heel Burnishing
Heel burnishing involves a number of operations, including: applying a hard wax to the
heel with a rough cloth, producing a dull polish with a finer fabric; and finally producing
a high polish with a brush or mop. Alternatively, a simple machine with three driven
wheels carrying progressively finer cloths may be used for these operations.

Seat Wheeling
This is a traditional operation that only performs a decorative function. It is now only
applied to expensive men's shoes. The result of the operation is a narrow line of small
vertical indentations round the seat at a level that overlaps the sole and heel. It is carried
out with a handle carrying a freely rotating wheel with a milled edge. A lip to register
against the upper edge of the sole acts as a guide.
Bottom Scouring
The purpose of this operation is to produce a smooth clean surface in preparation for
finishing the sole bottom. Two grades of scouring paper are used. They can be either
mounted on the circumference of a driven wheel or wrapped round flat wooden blocks.
When scouring by hand, a circular motion should be applied in order to avoid a grained
effect. On some machines, the rotating cylinders reciprocate from side to side to produce
a similar effect to hand scouring. If the leather is dry during this operation its surface
structure can be damaged.
Naumkeaging
The purpose of naumkeaging is to scour the curved waist of leather soles. The equipment
for this operation is often mounted on a vertical shaft at one end of proprietary finishing
machines. It consists of a conical wheel round which scouring paper is secured. For hand
scouring, the scouring paper can be wrapped around a suitably shaped piece of wood.
Bottom Staining

39
Staining is one of the several shoe bottoms finishing operations. In small enterprises, the
stain - which can contain some wax - is painted on with two or three strokes of a soft
wide brush.
Bottom Burnishing
Once the stain has dried, the bottom of the sole is burnished with wax and cloth in a
manner similar to that employed to burnish heels.
Bottom Inspection
Some rectification of the bottom finishing work may be required. Melted wax and heated
irons can be used to hide minor defects. After last removal, the soles may be branded on
the waist or forepart. As described in the context of insole marking, the impression can
be produced directly with a heated metal die or with embossing foil.
4.2. List of Machinery & equipment requirement
Table 9: Equipment Specifications for leather-upper cement lasted shoes with cemented-
on unit soles (Type-1)

S/ Major Machineries and Equipment

Purpose
No. Items
Cutting knives
1 Mechanical swing arm clicking/Cutting For cutting upper
press
2 Band knife splitting machine For leather splitting
Clicking bench
3 Marking bench For lining marking
Lining stamping machine
Clicking bench
Preparation bench
4 Marking bench For stitch marking
Manually operated stitch marking
machine
Bench
5 Hand held punches For hole punching
Perforating machine
6 Semi-automatic sock embosser For sock embossing
7 Skiving Machines For skiving
Edge folder for vamps & leathers
8 For edge folding and cementing
Edge binding machine
Stitching Machine (Flat, post and cylinder
9
bed) For stitching uppers
10 Seam reducing machine For seam reducing
Bench
11 For taping
Tape dispensing machine
12 Eyeletting bench For eyelet reinforcing

40
 Tape dispensing machine
13 Punching and eyeleting machine For punching and eyelet insertion
14 Lacing bench For temporary lacing
Fitting bench For general fitting and puff
15
Loose upper roughing machine attaching
Powered trimming machine
16 For upper trimming
Bench
Insole Cutting Machine
Press knives
Sole bench
Skiving Machine
17 Shank Grooving Machine For insole preparation
Shank Riveting Machine
Insole bevelling machine
Levelling and trimming machine
Insole Moulding Machine
Cement dispensing Machine
18 For sole cementing and drying
Drying equipment
19 Insole Tacking Machine For insole tacking
20 Conditioning bench For stiffener insertion
21 Steamer Machine For upper conditioning
Side Lasting Machine
Seat Lasting Machine
22 Pull toe lasting machine For cement lasting
Back part moulding machine
Lasting conveyor
23 Tack extracting Machine For tack removal and inspection
Heat setter
24 For heat setting
Hot Air Blower and Ironing Machine
Bottom roughing machine with dust
25
Extractor For bottom roughing
26 Shank Riveting Machine For shank attaching
27 Cement dispensing Machine For bottom cementing
28 Welt Applying Machine For bottom filler insertion
Hydraulic Sole Press Machine
29 For sole laying
Heat activator
30 De-lasting Machine For last removal
Hot air/blast treeing machine
31 Spray booth and guns For shoe finishing
Mopping and polishing machine
Table 10: Equipment Specifications for Leather-Upper, Cement-lasted Shoes with
directly Moulded-On Soles (Type 2)

Major Machineries and Equipment

S/No. Purpose
Items

41
1-
26,30&31 See Type 1 footwear production above
Cement Pot, Brushes and a Lasting jack
32 For scrim attaching
Scrim bench
33 Core bench For heel core attaching
34 PU dispensing Machine For bottom solutioning
Sole Injection Moulding-On soles
Sets of moulds and foot forms
35 For mould-on sole
Pre-heater
Granulator

Table 11: Equipment specification of Leather-upper, tack lasted shoes with machine-
sewn leather soles (Type-3)

Major Machineries and Equipment

S/No. Purpose
Items
1—16 See Type 1 footwear Production process
Mechanical swing arm clicking press
Press knives
36 Insole Moulding For insole preparation
Sole conforming machine
Insole beveling machine
Tempering tank
Paring and channeling knives
Mechanical swing arm clicking press
37 Sole evening machine For sole preparation
Sole rounding machine
Manually powered channel cutter
Mechanical swing arm clicking press
38 Insole Tacking Machine
For insole tacking
20-21 See Type 1 footwear production process
Manually operated drafting machine
Manually operated lasting machine
Back part moulding machine
39
Pulling and lasting machine For tack lasting
Tack side lasting mach.
Tack seat lasting mach.
23 See Type 1 footwear production process
Scouring buff
40
Bottom roughing machine For bottom pounding
24,26,28 See Type 1 footwear production process
41 Manually powered sole press or twin
station hydraulic sole press For sole laying
42
 42 De-lasting machine For last removal
Manually powered sole press using sole
43 levelling plates or Twin station sole press For sole levelling
with sole levelling plates
44 Seat Nailing machine For seat nailing
45 Heel nailing machines for heel building For heel attaching
and heel and top piece attaching
46 Lasting Machines For re-lasting
47 Heel paring machine For heel trimming
Sole trimming machine
For edge trimming
48 Edge trimming machine
Bottom finishing machine with edge irons
scouring wheels, mops and brushes
Hand work bench for drying, inking and For bottom finishing
49 staining
30-31 See Type 1 footwear production process

Table 12: Auxiliary machineries and equipment’s required for all type of shoes

Auxiliary
S/
Machineries and Purpose
No.
Equipment Items
Laboratory test Machinery and equipment for quality control laboratory
1 equipments (physical and chemical test) of shoes and their
components.
Blades and knives Metal tools with a sharp edge for cutting. Manual
2 working tool used in splitting machines, skiving, cutting
tables, etc..
Tools, cutters, Tools with a rotating surface equipped with multiple
3 moulds, shoe last cutting edges
and punches
Needles Small steel tools in a cylindrical shape with a pointed end
4 and the other side with an oval hole in which one passes
the thread for sewing.
Nails and tacks Used to fix provisional or final way the parts those are
5 utilized for leather article.
Pre-forming Moulds for shaping insoles, counters, soles in different
6
moulds materials and types.
7 Compressor To supply compressed air for the machine
8 Generator To supply electric power when power is interrupted
9 Packaging machine For packing final products

43
 5. MARKET DATA

5.1. Market Segmentation

The market for Leather Footwear can be segmented based on the destination of market
as domestic and export market.

5.2. World market

The world trade signifies the product’s export and import interaction across the nations
and this in turn give a clear image on the international demand and supply experience
about the product. With the alignment of global population growth, the growth and
development of global economy, the advancement of human knowledge and awareness
and other similar factors the world consumption of Leather Footwear shown a
significant change. The world Import and Export data trends are shown in the
following Tables.

5.2.1. World Import

Table 13: World top ten Import of Leather Footwear under HS Code of 640420(In pairs)

2018 2019 2020 2021 2022

Importe Importe Importe

Importers Importe Importe
d d d
d d
quantit quantit quantit
quantity quantity
y y y

5,673,16 12,399,8 21,571,4 5,255,73 6,335,14

United States of America 6 65 50 3 7

1,241,40 1,076,46 1,385,33

Chile 7 853,616 519,433 7 1

Singapore
2,498,55 2,073,84 1,139,93

44
 8 1 750,818 829,654 4

1,926,21
Thailand 8 668,687 298,168 745,712 826,803

Canada 556,463 513,826 373,199 412,437 669,830

1,422,52
Malaysia 6 949,271 463,014 449,172 461,223

Australia 515,702 358,965 350,525 342,300 338,906

Hong Kong, China 771,925 445 312 321,281 155,583

South Africa 907,641 660,396 441,065 280,961 151,509

Bahamas 102,085 140,072 89,623 135,684 149,925

Source: ITC Trade map

5.2.2. World Export

Table 14: World top ten export of Leather Footwear under HS Code of 640420 (In pairs)

2018 2019 2020 2021 2022

Exporte Exporte Exporte Exporte

Exporters Exported d d d d
quantity quantit quantit quantit quantit
y y y y

1,467,30
Thailand 1,332,171 723,690 338,790 717,974 8

1,140,31 1,065,72
United States of America 1,038,366 5 863,289 593,869 6

South Africa

45
 6,284,951 598,557 242,524 318,874 286,925

Singapore 254,790 524,161 227,517 111,572 164,780

Hong Kong, China 72 69 76 230,600 125,715

Canada 35,414 11,708 25,366 14,019 68,036

Australia 30,683 54,160 49,616 46,182 43,883

Sri Lanka - 4,150 1 42,600

Pakistan 91,110 73,469 25,149 42,279 31,950

Chile 8,149 - 13,714 2,922 17,258

Source: ITC Trade map

5.3. Ethiopian market

5.3.1. Demand Side
The demand for leather Footwear comes from the larger population in different age
groups.
Table 15: Projected Population (In '000s) Of Ethiopia (2007-37)
Year Total Population
2007 73,845
2012 84,040
2017 95,223
2022 106,983
2027 118,959
2032 130,875
2037 142,577

Source: CSA, population projection of Ethiopian for Ethiopia (2007-2037)

 Ethiopian Export Performance of Leather Footwear by product type

Table 16: Ethiopia leather footwear export performance by product type (In pairs)

46
Product type Years
2016 2017 2018 2019 2020
Shoe 3,158,635.00 3,613,620.00 3,657,717.00 3,058,465.00 1,490,816.00
Sandal 323,058.00 528,809.00 734,799.00 652,448.00 353,473.00
1,490,816.00
Traditional shoe - 1,080.00 50.00 - -
Source: Ethiopian Leather Development Institute

Note, the team tried to include export performance of leather shoe to 2022 but we can’t
find compiled and organized data from Ethiopian Leather Development Institute and
other concerned bodies.

5.3.2. Supply Side

Existing supply refers to the actual volume of domestic production and imports which
are
available in the market. The Market assessment of the supply side has been examined by
taking
into account the existing source of supply.

 Domestic Production
According to Ethiopian Leather Development Institute data, the 23 firms’ production
capacity is presented in the following table.
Table 17: Lists of Operational Factories with their production capacity

Installed Actual
Capacity
S/no Company Name Capacity Capacity
Utilization
Pair/ / day Pair/ day

1 Anbessa Shoe S.C 10000.00 3397.00 34%

2 ELICO ( Tikur Abay/Fontenina) 6200.00 5890.00 95%

3 Peakok Shoe 1600.00 800.00 50%

4 Ramsey Shoe 2000.00 1200.00 60%

5 New Wing Adiss 5500.00 2933.00 53%

6 Huajian Shoe City

7 Youbang Shoe

47
 8 George Shoe

9 Anderea Shoe 1400.00 550.00 39%

10 Pitards Leather Products 400.00 1000.00 250%

11 Kangaro Shoe 1600.00 1200.00 75%

12 Ras Dashen Shoe 1200.00 160.00 13%

13 Modern Zege Leather Products 800.00 400.00 50%

14 New Feeling Shoe 7500.00 3000.00 40%

15 Mohan Shoe 3000.00 2733.00 91%

16 Aone Shoe 10000.00 2500.00 25%

17 titi shoe manufacturing plc 1000.00 0%

18 Blacky Shoe

19 Bostex Shoe 200.00 6.00 3%

20 Park Shoe 700.00 120.00 17%

21 Iselex Shoe 800.00 500.00 63%

22 venus shoe manufacturing plc 500.00 300.00 60%

23 Damit Out Sole Manufacturing 7500.00 3000.00 40%

Source: Ethiopian Leather Development Institute

 Domestic Production Trend

The production trend of Leather Footwear is obtained from Central Statistics Agency
(CSA).
Table 18: Domestic production of leather shoes and boots (2013 – 2017)
Description Quantity Produced in Pairs
2013 2014 2015 2016 2017
Leather Shoes and 4,582,99
Boots CSA, Large and2,473,274
Source: 3,371,753
Medium Scale 4,610,435
Manufacturing 38,789,33
Annual Reports 7

5.4. Market Arrangement and Strategy

According to the information from existing leather footwear manufacturing firms, the
market outlet of domestic market starts from show room in the factory and the factories
have their own retail shops in different market places to facilitate the channeling.

48
Besides, the factories produce order based different types of shoes through receiving
from different government and private organizations.

Market arrangement of foreign market is determined by the factories performance in

meeting quality assurance policy of importing countries and it is observed somewhat
challenging unless the factory full filed quality assurance and other criteria stipulated by
foreign importers. As a result, the incumbent or existing firm should be well established
to meet all set criteria required by foreign importers. In both scenarios, the transaction
takes place on cash basis.

5.5. Current Price and Price Trend

The current prices of products are depicted in the parameter part, since the price trend of
each types of Footwear were not available.

6. PROBLEMSAND KEY SUCCESS FACTORS

6.1. PROBLEMS AND CONSTRAINTS
o Stiff competition in foreign market: the foreign market of leather shoe is
occupied by limited number of well-known shoes manufacturers as a result; it
is difficult to penetrate by searching foreign market in respect to competition,
brand and meeting of required buyers’ quality assurance policy criteria.
o Shortage of quality raw materials (skin) and skilled man power in the leather
sub-sector as major raw material.
o Shortage of foreign currency for imported raw materials from abroad.
o Competition from imported products
o Electric Power interruption

6.2. SUCCESS FACTORS

o High Demand of the product at local market
o Technology selection
o Professional Management
o Professional man power
o Advertisement
o Quality

49
 7. PARAMETERS, TECHNICAL COEFFICIENTS
AND ASSUMPTIONS

This part is devoted on the assessment of the coefficients and parameters, which are to
be used on the determination of costs and revenue and caution has to be there since the
parameters and coefficients are being an indicative ones where the real coefficients rely
on.

7.1. Basic assumption

o Working days per annum ………….……………………………….270
o Working days per week ………………….…………………………6
o Number of shift in a day ……………………………………………2
o Working hours per shift …………………………………………….8

7.2. Revenue estimation

Table 19: average price of products

Leather Shoes type Unit Price in birr

Safety shoes Pairs 2,775
Military & workers shoes Pairs 2,228
Sport shoes Pairs 1800
Football shoes Pairs 1210
Casual shoes
Gents Pairs 1,425
Ladies Pairs 1,015
Children Pairs 660.00
Sandal shoes Pairs 750.00
Moccasin shoe Pairs 1900

50
 Direct injection shoe Pairs 1300
Source: kangaroo Shoes Factory and Ethio Leather industry plc.
 Conversion factor

In the process of making leather shoes, what we call waste is usually the type of waste
that occurs during cutting. Because the waste occurred in other process can be easily
remedied.

The average waste percentage for genuine leather (upper) and Leather substitute to be
cut in the shoe manufacturing plant (reinforcement) are approximated to 15-17%.
Purchased (e.g. unit soles, laces, thread) have negligible waste as compared to other
components of shoes.

To determine the required amount of raw materials needed to make a shoe, first it has to
be known the size and type of shoes. For example:-

 If we are making a men's dress shoe like a brogue (The brogue is a style of low-
heeled shoe traditionally characterized by multiple-piece, sturdy leather uppers with
decorative perforations), then we would require 3 sq feet of leather to make a pair of
shoes.
 If we are making a ladies sandal then less than 1 sqft, while if we are making a ladies
boot then it could require 6-7 sqft also.

The average pair of shoes requires approximately 3 to 4 square feet of leather. A boot
requires 5 to 6 square feet.
Table 20: Basic components of leather footwear and Raw material /Quantity
consumedper pair of shoes
Description GENTS LADIES CHILD
REN'S
Nor Boo Mocc San Nor Mocc Hal Full Normal
mal ts asin dals mal asin f Boo Shoe
Sho Sho Shoe shoe Sho Shoe Bo ts
e e e ots
Upper 2.9 3.8 3.2 1 2 2.3 3.5 5 2

51
Description GENTS LADIES CHILD
REN'S
Nor Boo Mocc San Nor Mocc Hal Full Normal
mal ts asin dals mal asin f Boo Shoe
Sho Sho Shoe shoe Sho Shoe Bo ts
e e e ots
Leather(Sq.ft)
Lining
Leather(Sq.ft) 3.1 3.3 3.1 1.75 2.25 2.5 3.75 4.5 2.1
Synthetic 0.30 0.07 0.15 0.39
Upper(Sq.mt) 0.23 1 0.253 9 8 0.18 0.28 6 0.158
Synthetic 0.24 0.26 0.244 0.13 0.17
Lining(Sq.mt) 49 07 9 82 77 0.2 0.3 0.38 0.1659
Foam(Sq Colla
.mt) r
Foa 0.01 0.01 0.01 0.01 0.00
m 7 7 0.017 5 0.015 5 99 0.015
Body
Foa
m 0.12 0.07
Sock
s
Foa 0.05 0.05 0.03 0.03 0.03
m 6 9 0.056 0.06 5 0.035 5 5 0.035
Stiffener
( Counter) 0.05
(Sq.mt) 0.04 5 0.04 0.02 0.02 0.02 0.02 0.02
Stiffener
( Counter)(prs) 1 1 1 1 1 1 1 1
Toe puff (Prs) 1
Toe puff (Sq.mt) 0.03 0.02 0.02
0.03 5 6 6 0.02
Reinforcement 0.05 0.09 0.035 0.07 0.04 0.04 0.04 0.04 0.04

52
Description GENTS LADIES CHILD
REN'S
Nor Boo Mocc San Nor Mocc Hal Full Normal
mal ts asin dals mal asin f Boo Shoe
Sho Sho Shoe shoe Sho Shoe Bo ts
e e e ots
(interlining)
(Sq.mt) 9
Shank 0.02 0.02 0.02
Board(Sq.mt) 0.03 0.03 0.03 0.03 6 0.026 6 6 0.02
Shank steel(Prs) 1 1 1 1 1 1 1 1 1
Insole(Sq.mt) 0.05 0.05 0.04 0.04 0.04
6 9 0.056 0.06 5 0.045 5 5 0.036
Sole(Prs) 1 1 1 1 1 1 1 1 1
Threa Thread(
d(Mt) Mt) 55 70 30 40 35 45 25
Thread
Moccas
in (Mt) 3.5 5.5 2.5 2.5
Thread
no.
( 13,20,
40,60) 35 35
Eyelets(Pcs) 20 32 16 20 16 16 32 16
metal trim
/Ornament(Pcs) 2 2 2 8 2 2 2 2 2
Rivet (Set) 4 4 4 4 4 4 4 4
Buckle and
metal ring (Pcs) 2
Straps/mignon
(Mt) 0.8 0.8 0.8 0.8 0.6 0.6 0.6 0.8 0.4
Fitting and 0.25 0.3 0.2 0.3 0.3 0.2 0.16
Fasteners

53
Description GENTS LADIES CHILD
REN'S
Nor Boo Mocc San Nor Mocc Hal Full Normal
mal ts asin dals mal asin f Boo Shoe
Sho Sho Shoe shoe Sho Shoe Bo ts
e e e ots
(Velcro)(shatter)
(Mt)
Footw PU 0.03 0.03 0.03 0.03 0.03 0.03
ear 3 3 0.038 8 3 0.033 3 3 0.03
adhesi Granule
ve hot
(Kg) melt 0.00 0.00 0.00 0.00 0.00 0.00
glue 1 7 0.001 1 1 0.001 1 1 0.001
Neopre
ne and
latex
adhesiv 0.03 0.02 0.02 0.02
e 6 0.04 0.04 0.02 6 0.026 6 6 0.022
Harden 0.00 0.00 0.001 0.00 0.00 0.001 0.00 0.00
er 17 17 9 19 17 7 17 17 0.0015
Thermo
rod
polyest 0.01 0.00 0.00 0.00
er 0.01 2 7 0.007 7 7 0.005
Thermo
rod
polyam 0.01 0.01
ide 3 6 0.013 0.01 0.01 0.01 0.01 0.01
Label (Pcs) 1 1 1 1 1 1 1 1
Shoe laces (Prs)
Rubber Sheet
(Sq.mt) 0.06

54
Description GENTS LADIES CHILD
REN'S
Nor Boo Mocc San Nor Mocc Hal Full Normal
mal ts asin dals mal asin f Boo Shoe
Sho Sho Shoe shoe Sho Shoe Bo ts
e e e ots
Packin Tissue
g paper
Materi (for
als rapping 0.01 0.01 0.01
) (Kg) 0.02 0.03 0.02 0.02 5 0.015 5 5 0.015
Tissue
paper
(for lift)
(Kg) 0.03 0.04 0.03 0.03 0.02 0.02 0.02 0.09 0.02
Shoe
box
(Pcs) 1 1 1 1 1 1 1 1 1
corruga
ted
carton
(Kg)
Tacks/ Shoe 0.01 0.01 0.01 0.01 0.01 0.01
nails (Kg) 2 8 0.008 6 2 0.012 2 2 0.01
MFK Cleaner 0.00 0.00 0.00 0.00 0.00
(Lt) 5 0.01 0.005 5 5 0.005 5 5 0.004
Primer (dolente)
(halogen agent 0.00 0.00 0.00 0.00 0.00 0.00
liquid) (Lt) 6 5 0.006 6 5 0.005 5 5 0.004
Pre- forming 0.000
powder (Kg) 05
Priming powder 0.00 0.00 0.000 0.00 0.00 0.000 0.00 0.00
(Kg) 015 015 15 015 015 15 015 015 0.00015

55
Description GENTS LADIES CHILD
REN'S
Nor Boo Mocc San Nor Mocc Hal Full Normal
mal ts asin dals mal asin f Boo Shoe
Sho Sho Shoe shoe Sho Shoe Bo ts
e e e ots
Eyelets facing
reinforcement 0.00 0.02 0.00 0.00 0.00
(Sq.mt) 9 5 0.008 0.12 9 0.009 9 9 0.005
Zipper(Pcs) 2 2 2 2 2 2
welt (Mt) 1.5 1.7 1.5
Stamping foil
(Mt) 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12
Elastic (Mt) 0.16 0.16 0.16 0.16 0.2 0.2 0.2 0.6 0.16
Reinforcement
tape /synthetic
tape/ (Mt) 0.9 0.56 0.2 0.9 0.16 0.16 0.16 0.8 0.16
Hooks (Pcs) 4 12
Alcohol(LT)

Table 21: Raw material /Quantity consumed for Cementing- sport shoes

Material Measurement Quantity consumed /pair

Upper PU leather (synthetic) Sq.mt 0.15
upper stitching thread bobbin 0.01
latex for upper barrel 0.00003
glue for upper (yellow) tin 0.0005
interlining lacost fabric Sq.mt 0.13
nonwoven stitch bond-upper
supporter meter 0.10
chemical sheet-back counter piece 0.02

Ping pong nonwoven-back piece 0.02

56
counter
Lace pair 1.00
Eyelet piece 28.00
upper cementing glue-white tin 0.001
desmedor-glue cross linker bottle 0.0001
In sock glue tin 0.0005
latex-insole board and upper barrel 0.00003
sole wiping chemical-primer bottle 0.0003
insole board board 0.03
staples-last insole board
attacher piece 6.00
Eva for in sock meter 0.03
lacost fabric for in sock Sq.mt 0.03
heel softener Eva piece 0.10
shoe box piece 1.00
carton box piece 0.13
Hanger piece 1.00
Source: Source: Year 2015 commodity study
NB: This conversion rate is a sample one not an inclusive and representative of all other
types of shoes. As a result, the rate can be different in light of types of shoes and their
respective design.
7.3. Investment cost

7.3.1. Machinery and equipment

List of machinery, auxiliary equipment are listed at the end of technical part of the
document.

7.3.2. Vehicles
Table 22: Type of required vehicles and their respective purpose
Type of vehicle Purpose
Automobile For manager and administrative works
Service Bus For employees transportation
Trucks For distribution purpose.
NB: The price and number of vehicles could be determined based on submitted perform
invoice and the scale of project respectively

57
 7.4. Operational Expenses

7.4.1. Current Price of Major Raw Materials

Table 23: price of major raw materials
Major raw material UoM Price /UoM
Upper Leather
Cow leather Sqft Birr 80.00
Sheep leather Sqft Birr 52.00
Goat leather Sqft Birr 53.00
Upper Lining
Cow lining Sqft Birr 58.00
Sheep lining Sqft Birr 34.00
Sole (local) Pair Birr 131.14

Sole (import) Pair Euro 4 4.00

Textile Sqft Birr 65.00
Source: kangaroo Shoes Factory and Ethio Leather industry plc.

7.4.1. Current Price of Major Raw Materials used for sole manufacturing
Table 24: average price of major raw materials
Major raw material UoM Price /UoM
Polyurethane (PU) kg Birr 300
Thermo rubber (TR) kg Birr 180
Thermo plastic rubber kg Birr 130
(TPR)
Polytilevinyl compound kg Birr 280
Inter lining textile mt Birr 140
Foam lining mt Birr 160
Packing plasters mt Birr 2.30
Packing paper pcs Birr 1.65
Finishing creams Pcs Birr 700
Shoe tacks Kg Birr 570
Elastic(gusset) mt Birr 160
Fiber glass Mt Birr 270
Water proof synthetic mt Birr 261
material
In sole material mt Birr 226
Steel toe cap Pairs Birr 95

58
 Hardener Kg Birr 408
rivet Pcs Birr 0.40
Source: kangaroo Shoes Factory and Ethio Leather industry plc.
7.4.2. Current Average Price of Auxiliary Materials
Table 25: Average price of auxiliary materials and inputs
Unit of
Description of raw materials measurement Price in Birr
White Adhesive Sq.mt 332.5

Stiffener meter 255

Nylon Thread 60 cone 393.5

Nylon Thread 40 cone 129.25

Foam pcs 380

Insole Board (texen board) Sheet 268.34

Shoe lace Pair 12

Counter Sq.mt 396.465

Moccasin thread Meter 3.40

Cream (shoes polish) pcs 605.805

Zipper Pair 24.71

Steal shank Pair 3.75

Primary sole cleaner Litter 410
Roughing ring Pcs 80
Shank board Sheet 255.224

Silver/ refill Pcs 20

Toe puff sheet 369.6725

Staffing paper ream 125

Eva sheet Sheet1*1.50 250
Yellow adhesive Litter 285
Zelebet Pcs 0.988975

Shoe décor Pcs 15

Nails Pcs NA

59
Needle Pcs NA

Roughing ring Pcs NA

Rivet, metal trim/Ornament Pcs NA

Eyelet Pcs NA

Toe Steel for Safety Shoe Pair NA

Source: kangaroo Shoes Factory and Ethio Leather industry plc.

7.4.3. Current Average Price of Packing Materials

Table 26: average price of packing materials
Description Unit of Unit price per unit
measurement (Birr)
Shoes box Pcs NA
Poly bag kg 196.5
Tissue paper Pcs 125
Plaster pcs 70
Carton box (Can hold 24 Shoes) Pcs 125
Source: kangaroo Shoes Factory and Ethio Leather industry plc.
7.4.4. Uniform & Cloths
Sr. No. Packing materials UOM Price /UoM in Birr

1. Uniform Pcs Br 1250

2. Glove Pairs Br 300.00

3. Face mask Pcs Br 80.00

4. Shoes Pair Br 1200

Source: ELICO, and Kangaroo Shoes Factory

7.5. Overhead Expenses

A. Utilities
 Electricity Cost/KWh: will depend on the specification of the machinery in the
selected technology.

60
  Water Tariff Rate: For the water tariff rate refer to the “Cross Cutting Project
Supporting Data, 2020’’ updated by Research & Project Data Management
Directorate.
 Fuel cost:
 For Automobile: 13-15 Km per liter
 For Truck:

Table 27: Fuel consumption

Gross Distance Fuel Fuel Consumption per AVERAGE
Vehicle Pay Load travelled in one Consumption Km for each ton of
Weight liter per Km load lit/km/ton

7.5 TON 3.124 ton 5.840 km/lit 0.171 lit/km 0.055 lit/km/ton

12 TON 6.311 ton 5.500 km/lit 0.182 lit/km 0.029 lit/km/ton 0.035

18 TON 10.198 ton 4.540 km/lit 0.220 lit/km 0.022 lit/km/ton

 For Service Vehicle : 0.013559 lit/seat/ km

 The cost of oil and grease: 2% of fuel cost
B. Traveling Expense: - The cost of travel and per diem is found to be on average
1.27% of annual salary.
C. Medical expense: 5% of wage and salaries.
D. Telephone, post & internet: on average 0.12% of annual sales.
E. Promotion cost: on average 0.11% of annual sales.
F. Repair and Maintenance Rate
Building and construction 2%
Machinery and equipment 5%
Furniture and fixture 2%
Vehicles 5%
G. Depreciation Rate
Building and Construction 5% of original cost
Machinery & Equipment 10% of original cost
Furniture and Fixture 10% of original cost
Vehicles 20% of original cost
Generator 10% of original cost

61
 H. Land Lease Cost
It is according to land lease agreement between the project and concerned office from
where the land would be availed.

7.6. Insurance
Table 28: Insurance Charges (Rates)
Description Types of Insurance
Buildings Earthquake and fire
Machinery &equipment’s and Fire and lightning
Furniture
Vehicles Accidents( life and property damage, and third
party insurance)
Life insurance Working hrs and work man composition for
employee and 24 hrs personal and work team for
managers
For the rate of insurance premium refer to the “Cross Cutting Project Supporting Data,
2020’’ updated by Research & Project Data Management Directorate.

7.7. Working Capital

Table 29: Working capital determination
Description Period (Months)
Salary and wages 1
Raw Materials Local 1
Import 4
Utilities 1
Fuel, oil & lubricants 1
Stationary and office supply 1
Travel & per diem 1
Finished products 15-30 days
Working Process 1 day

8. REFERENCE
- Central Statistical Agency data

62
- Ethiopian Leather Development Institute
- ITC Trade MAP
- ELICO Shoe Factory
- Kangaroo Shoe Factory
- Previous Raw data and Information on Leather Shoe Manufacturing

63