AN OBSERVATION STUDY ON

HIRENCE LEATHERS
By

HEMA KRISHNA.B

Reg. No: (510615631015)

SUMMER INTERNSHIP TRAINING REPORT

Submitted to the

FACULTY OF BUSINESS ADMINISTRATION

In partial fulfillment of the requirements

For the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY

Chennai – 600 025

JULY 2016
 C.ABDUL HAKEEM COLLEGE OF
ENGINEERING & TECHNOLOGY

Melvisharam. Vellore District.

BONAFIDE CERTIFICATE
Certified to the project titled “A STUDY ON OVER ALL OBSERVATION
towards HIRENCE LEATHERS” is the Bonafide work of HEMA KRISHNA B (Reg. No:
510615631015) that carried out the work under my supervision. Certified further, that to the
best of my knowledge the work reported herein does not form part of any other project report
or dissertation on the basis of which a degree or award was conferred on an earlier occasion
on this or any other candidate.

------------------------- -------------------------

(Dr). S. KUMARAPERUMAL (Dr). E. GNANASEKARAN

(HOD) (Faculty guide)

 DECLARATION

I Under gone a summer training in HIRENCE LEATHERS submitted to the Anna

university in partial Fulfillment of the requirements for the award of degree in Master of
Business Administration, is a record of original work done by me under the guidance of
(Dr). E. GNANASEKARAN, Asst. Prof. School of management department, C. Abdul
Hakeem College of Engineering & Technology, Melvisharam.

Place: HEMA KRISHNA B

Date: (Reg.No:510615631015)
ACKNOWLEDGEMENT

First of all, I wholeheartedly thank almighty for given me good opportunity and
strength to successfully complete my project.

I extend my heart-felt gratitude to our beloved chairman JANAB HAJI

S.ZIAUDDIN AHMED SAHIB,B.A and dynamic JANAB HAJI V.M.ABDUL
LATHEEF SAHED,B.E for giving me this opportunity.

I forward my respectful thanks to our principal Dr., who allowed me to undergo the
project.

I am very much thankful to (Dr). S.KUMARAPERUMAL, Head of the Department

and Management Studies for permitting me to do this project.

I am extremely thankful to my internal guide (Dr). E. GNANASEKARAN Asst.

Prof., Department of Management Studies for his untiring help and care evinced during my
project work.

I am thankful to all the staff members of Department of Management Studies who

played a great role to make my project successful.

I am thankful to all my respondents for spending their valuable time and cooperation.
With immense pleasure I thank my beloved Family Members and Friends for their unfailing
enthusiasm, moral boosting and the encouragement they offered me while doing this project.

HEMA KRISHNA B
CONTENT

S.NO DESCRIPTION PAGE

NO

1 COMPANY PROFILE 1

2 INDUSTRY PROFILE 5

3 HUMAN RESOURCE DEPARTMENT 11

4 FINANCE DEPARTMENT 21

5 ACCOUNTING & AUDITS 25

6 PRODUCTION DEPARTMENT 28

7 CONCLUSION 36
COMPANY
PROFILE
HIRENCE LEATHERS

 Ever since its inception, the HIRENCE LEATHERS has followed the principle of
putting enterprise, innovation and integrity above everything else.

 Established in the year 1995, Chennai Tamilnadu, in India, the group has expanded
and diversified its activities and currently controls the operations through two tanneries.
The group exports its products over 10 countries.

 HIRENCE LEATHERS is situated at Sidco Industries, Ranipet Was established in the

year 2005. The installed capacity is 2000 products per day. It engages about 95
employees. The major customers are from GERMANY and USA.

 The company has been functioning with established systems, procedures and
manufacturing practices. It is accountable to the society with regard to the ethics
that are to be followed like 'No Pollution', 'No overworking' and 'No exploitation'.

 The manufacturing unit is managed by a team of qualified personnel who look

for continual improvements in technology, operations and products. The
management has defined and documented its Quality Policy and Objectives. These
are made known to every employee through training programmers’, posters and cards
and ensure its commitment to achieve Quality Policy by following the
Quality Management Systems.

 The group today reiterates its commitment to leather industry. The years of
dedication, pursuit of excellence and strong belief in keeping pace with international
standards and quality expectations have helped it reach its present heights. Backed
by their rich experience, the group now focuses its vision on tomorrow's
changes, challenges and demands.
THE VISION:

Through teamwork and partnership, to meet the challenge of the future and
achieve excellence in quality service.

THE MISSION:

Townsend Leather is a company of specialized craftspeople, in partnership

with customers, suppliers, and other fellow partners dedicated to producing and marketing
superior quality products and services to ensure the success and fulfillment of all partners.

QUALITY POLICY:

Every step of HIRENCE LEATHERS manufacturing process undergoes meticulous

testing at computerized labs that are equipped to eliminate even the mildest flaws. With
finished leather and shoe uppers being made in our own facilities, quality is well within our
control. Our tannery is also one of the tanneries to get the ISO 9001 certification way
back in 1998 and was certified again in 1997 and 2000. Because our tannery started in
1995.

RESEARCH AND DEVELOPMENT:

In order to ensure a consistent standard of quality, year after year, The

Company's R and D Lab maintains and executes adequate measures for pollution
control and institutes processes to ensure 100% quality.

INFRASTRUCTURE:

This is focused on the future and believes that the key to growth lies in the
application and use of state-of-the-art infrastructure. With a continuous process of
innovation, HIRENCE LEATHERS constantly enhances and upgrades existing
technologies and equipment to present global practices.
CARING FOR ENVIRONMENT:

This is an environment-conscious group with a serious commitment

towards bettering their immediate surroundings and taken several measures to control
pollution and provide a hazard-free working environment for their employees.

Chart- 1: ORGANIZATIONAL CHART

Managing director

Director HR Production manager

MAINTENANCE STORE

TECHNICIAN TECHNICIAN FINISHED

FINAL INSPECTION STORE

QUALITY CONTROL STORE

INDUSTRY
PROFILE
OVERVIEW OF LEATHER INDUSTRY:

The leather industry holds a predominant place in the India economy with
respect to its enormous potential for employment, growth and exports. Emphasis has been
laid on the planned development, aimed at optimum utilization of available raw materials for
maximizing the return, particularly from exports the leather industry is the 7th largest foreign
exchange earner for the country. Besides it is a large employment provider –direct and
indirect employment is about 3.5 million-mostly from weaker section of the society. Women
employees constitute more than 80 percent of the workforce in the leather products sectors.

STRENGTH OF THE INDUSTRY:

The annual availability of 45 million pieces of hide’s and 130 million pieces
of skins is the main strength of the industry some of the goat, calf or sheepskins available in
India are regarded as specially products commanding a good market. According to the latest
census, India ranks first among the livestock holding countries in the world. Abundance of
traditional skill in training, finishing and manufacturing downstream products and relatively
competitively wage levels are the two factors that allow on India a comparative advantage.

STRUCTURE OF THE INDUSTRY:

The leather industry is divided into different segment, such as tanning and
footwear component, leather garments, leather goods as including saddler and harness. The
major production centers for leather products are located at Chennai, ambur, pernambu,
Ranipet, Vaniyampadi, Trichy and Dindigul in Tamilnadu, Kolkata in west Bengal, Kanpur
and Agra, uttarpradesh, jallandhar in Punjab, Bangalore in Karnataka, Delhi and Hyderabad
in andrapradesh.
Product Capacity

Leather
Hides 64 million pieces

Skins 166 million pieces

Footwear & Footwear Components

a) Shoes 100 million pairs

b) Leather shoe uppers 78 million pairs

c) Non-leather shoes/ chappals etc 125 million pairs

Leather Garments 6 million pieces

Leather Products 70 million pieces

Industrial Gloves 40 million pairs

Saddlery 6000 pieces

RAW MATERIAL SUPPLIES:

The leather industry, one of the major foreign exchange earners of the country
recorded significant growth since the beginning of the decade. Today the share of the value
added finished products in the total exports from leather sector.

There exists a large raw material base. This is on account of population of 194
million cattle, 70 million buffaloes and 95 million goats. According to the latest census, India
ranks first among the major livestock holding countries in the world. In respect of sheep with
48 million sheep’s, it claims the sixth position. These four species provide the basic raw
material for the leather industry.
 The annual availability of 166 million pieces of hides and skins is the
main strength of the industry. This is expected to go up to 218 million pieces by the end of
year 2000. Some of the goat/calf/sheep skins available in India are regarded as specialty
products commanding a good market. Abundance of traditional skills in training, finishing
and manufacturing downstream products and relatively low wage rates are the two other
factors of comparative advantage for India.

TANNING AND FINISHING CAPACITY:

With tanning and finishing capacity for processing 1192 million pieces of
hides and skins per annum spread over different parts of the country, most of which is
organized along modern lives, the capability of India to sustain a much larger industry with
its raw material resource is evident. In order to augment the domestic raw material
availability, the Government of India has allowed duty free import of hides and skins from
anywhere in the world. It is an attraction for any foreign manufacturer who intends to shift
his production base from a high cost location to low cost base.
EXPORT PERFORMANCE:

There has been phenomenal in leather exports of leather and leather products,
from 3 crore in the year 1957-58toRS.9,000 crore in the 2000-2002. The exports of leather
and leather products during 1998-99 reached. 6,955 crores against the previous year’s
performance of RS.7,157 crore’s, recording positive growth rate a 12.97 percent in rupees
terms. However in dollar terms, the exports declined by1.70 percent. The major importing
countries Germany 22.23%, us 15.56%, ITALY12% and UK 14%.

POSITIONING OF INDIA IN THE GLOBAL MARKET:

India has been slowly but steadily transforming her traditional leather industry
over past more than 10years. To begin with India was a major exporter of hides and skins to
the advanced west but right from the middle of the 1970’s India has been following the policy
of adding the value to its raw material before export. This exports oriented modern
production sector co-exists with a network of traditional production base for leather and
leather products.
NATIONAL LEATHER DEVELOPMENT PROGRAMME:

The National leather development programmed is being implemented by

government of India in association with united nation development programme (UNDP).
UNDP had contributed 15.05 million US dollars for the programme. The Government of
India has provided Counterpart funding of about 10 million US dollars. The programme
seeks strengthen the industry in the areas of education and technical. Training, research and
development, efficient control, export enhancement and co-ordination. The Programme is
aimed at integrated development of leather industry through select institutuions/agencies is
the country. A good deal of experience from advanced western countries is expected to flow
into the industry besides a number of India professionals being to the western institutions and
organization for training. Many training institutions in India are being modernized and
updated to fall in with those working in the west. The programmed commenced in April
1992.

FUTURE PERSPECTIVE:

The Global Trade in leather products has grown manifold and has reached
a level of US $ billion in 1997, from mere US $ Billion in 1972. The Government India has
given special at attention to leather and leather product sector at various levels with a view to
boost Export, keeping in view its inherent strength and prospective features.

FEATURE OF LEATHER SECTOR IN INDIA:

 Employees 15 lakhs persons directly.

 A large part of nearly, (60-65%) of the production is in the small sector.
 A small capital investment can generate a high turnover of the two/three
time’s investment.
 Export oriented amongst top 5- export earner for India.
 India has 10% of the world Raw Material, but only 4% of the world trade.
 In footwear and Garments, which Constitute over, 40%, 35% respectively of
the world trade India has less than 1% of the world trade.
 HUMAN
RESOURCE
DEPARTMENT
  ROLES AND RESPONSIBILITIES:

 Recruitment of selection of employee Training.

 Wages administration.
 Selection of right person for a right job.
 Safety for employee.
 Motivate to employee.
 Solving the problem of employee.
 Taking an exit test of employee.
 Re-Correct a drawback of a firm.

 FUNCTIONS:

Managerial Functions:
a) Planning.
b) Organizing.
c) Directing.
d) Controlling.

Operative Functions:

a) Procurement
I. Job Analysis.
II. Human Resource Planning.
III. Recruitment.
IV. Selection.
V. Placement.
VI. Induction.
VII. Transfer.
VIII. Promotion.
IX. Separation.
 b) Development
I. Performance Appraisal.
II. Training.
III. Executive Development
IV. Career Planning and development.

c) Compensation
I. Job Evaluation
II. Wage and Salary Administration.
III. Bonus and Incentives
V. Payroll

d) Integration.
I. Motivation
II. Job Satisfaction
III. Grievance Redressal
IV. Collective Bargaining
V. Conflict Management
VI. Participation of employees
VII. Discipline

e) Maintenance
I. Safety
II. Social security
III. Welfare Schemes
IV. Personnel Research
V. Personnel Audit.

Employee Provident Fund (EPF):

EPF means calculation of salary components under employer’s contribution

towards recognized provident fund too we need to consider the same salary components of
HRA i.e. Salary, dearness allowances (DA), travelling allowances (TA). Total contribution
for EPF is 20.33%.
Salary:

Previously in EPF scheme salary is about basic + DA, so 12% of contribution was
considered for EPF from employees and employers. But from now on words it includes basic
+ DA + allowances

House rent allowances (HRA):

House rent allowances is given by an employer to an employee. The sole purpose of

this is to meet the cost of renting a home.

Travelling allowances (TA):

Travelling allowances refers to a sum allowed for travel. It can also be referred to as a
sum granted as reimbursement for travelling expenses. It is also any allowances paid or
advanced to an employee in respect of travelling expenses for business purpose.

Employees pension scheme:

By the labor provident funds laws provision was made for the creation of an
employees’ Family pension fund and family pension scheme. BY the employees’ provident
fund and miscellaneous provision ordinance, 1995, the family pension scheme has been
replaced by pension scheme.

Family pension scheme (FPS):

It is provided for the family in case of death. The contribution for family pension
scheme is 3.67%.

Medical officer:
Once in six months the blood check up, body check up will be made to the
employees. It is used to check the health condition of the employees. And the checking will
be made in canteen, drums etc. The company will pay for every employees check up from
Rs400 to Rs500.
 RECRUITMENT PROCESS:

“Recruitment is the process of searching for prospective

employees and stimulating for prospective employees and stimulating them to apply
for jobs in the organization”
- Edwin B. Flippo

Recruitment Planning

Strategy Development

Sources of recruitment

Screening

Evaluation and Control

 SELECTION:

Selection is the process by which candidates for employment are

divided into clause those who will be offered employment and those who will not.

- Yoder
 Process:

Screening of Applications

Selection Tests

Preliminary interview

Reference check

Medical examinations

Final interview

Approval

Placement

 TRAINING:

"Training is the continuous, systematic development among all levels of

employees of that knowledge and those skills and attitudes which contribute to their welfare
and that of the company"

-M.C Lord and Efferson

On The Job:

 Job Rotations
 Coaching
 Experience
 Temporary Promotions

Off The Job:

 Lecture
 Conferences
 Case studies
 Business Games
 In basket method

 WELFARE AND SAFETY:

Labor health:

The world Health Organization has defined health as “a state of complete physical,
mental and social- well- being and not merely the absence of disease or illness or infirmity”.
Health refers to the outcome of the interaction between the individual and his environment.

There are two types of employee health they are as follows:

 Physical health

 Mental health

Importance of Health:

In long and short, employee health is important because it helps:

 Maintain and improve the employee performance both quantitatively and

qualitatively.

 Reduce employee absenteeism and turnover.

 Minimize industrial unrest and indiscipline.

  Improves employee morale and motivation.

 It increases the longer working period of an employee.

Occupational Hazards:

Employees in certain industries are exposed to certain occupational hazards and

diseases. Occupational hazards has classified in to four categories:

 Chemical Hazards

 Biological Hazards

 Environmental Hazards

 Psychological Hazards

The welfare provisions impose upon the managers has certain obligation are:

1. To protect workers, unway as well as negligent, from accidents and

2. To secure for them in employment, conditions, conductive to their health, safety

and welfare.

It includes:

1. Washing facilities
2. Facility for storing and drying clothes
3. Provision for seating arrangement for workers
4. first-aid appliances
5. Canteen facility
6. Shelters, rest rooms and lunch rooms provided with adequately lighted and
ventilated.

Welfare measures are concerned with general wellbeing and efficiency of workers. In
the early stages of industrialization, welfare activities for factory workers did not receive
adequate attention.

Employee safety includes the condition of state of being safe; freedom from danger or
hazard; exemption from hurt, injury, or loss.
Statutory provisions concerning safety:

 Fencing of machines
 Work on or near machinery in motion
 Employment of young person’s on dangerous machinery
 Self-acting machinery
 Pressure plant
 Floors, stairs and means of access
 Protection of eyes
 Precautions against dangerous fumes, inflammable, dust, gas etc.
 Precaution in case of fire
 Safety of building and machinery
 Maintenance of building and machinery
 Safety officers.
 FINANCE
DEPARTMENT
 ROLES AND RESPONSIBILITIES:

 Internal and external reporting

 Production of annual statutory accounts
 Receipting and depositing all revenues
 Accounting for all assets and capital project expenditures
 Controlling expenditure and obligations ( including operating expenses, dept, payroll)
 Budgeting and cash flow forecasting
 Managing the investment of all moneys
 Payment of salaries and wages including statutory deductions
 Communicates and responds to issues raised by other departments within established
timelines
 Records and reports on capital assets apply established accounting procedures
 Provide feedback to Finance on proposed changes to financial policies

CHART - 2
 DEPARTMENT STRUCTURE:

Finance
Director

Project
Financial Management
management Treasurer
accountant accountant
support

Accounts Accounts Credit Cost

payable receivable controller accountant
  FUNCTIONS:
 Providing management information
 Fund allocation
 Fund raising
 Preparing Final Accounts
 Profit planning
 Book keeping procedures
 Understanding capital market
 Management of wages

STRATEGIC FINANCIAL MANAGEMENT:

Refers to study of finance with a long term view considering

the strategic goals of the enterprise. Financial management is nowadays increasingly referred
to as "Strategic Financial Management" so as to give it an increased reference. The objective
of the Financial Management is the maximization of shareholders wealth. To satisfy this
objective a company requires a "long term course of action" and this is where strategy fits in.

FINANCIAL STRATEGIES:

Controller group:

The controller group maintains a company book and ensures that all business transaction are
properly recorded and managed. The general ledger is the main source for all of the company
financial reports, so it is important that the financial controller and other staff accounts keep an
organization record of all credit and debit

Account payable & receivable:.

The ap group simply put manages and payroll of the company bills .They are responsible for
keeping the lights on and ensuring that all creditors are paid in full time.

Budgeting & forecasting:

The budgeting and forecasting group produces and assesses the budget, calculating the variance
between planned and actual cost. It also forecast the revenue and expanses of certain group or
functions, allowing budget owners to plan and prioritize spending.
Treasury:

Also known as cash management, the treasury group managers all of the company assets to
maximize liquidity and reduce risk .the group is responsible for ensuring that a company has a
steady cash flow and also for securing any funding that may be needed.

Tax:

The tax function is responsible for managing and planning for all tax-related expenses. The
circumstances that surround tax management can be complicated, especially for company that
operates globally.

Internal audit:

The internal audit groups overseas a company financial operation to ensure that they are in line
with internal and external policies and regulations.

Payroll:

The payroll group, which is commonly outsourced or carried out within the hr group is
responsible for the administration and documentation of all salaries, wages, bonuses and deductions
received by employees.
ACCOUNTING
AND
AUDITS
 ACCOUNTING:

Accounting is the systematic process of recording, storing and presenting company

financial data. Accountants maintain complex records of all financial transactions, including
things like sales revenue and expenses in addition to costs such as payrolls and taxes. The
accounting cycle begins with transaction receipts and other original financial documents.
Accountants make entries for all financial events in individual accounts, most often using a
software accounting program.

AUDITING:

Auditing is the process of reviewing and investigating any aspect of a business,

whether financial or nonfinancial. Auditors are fully trained to spot areas of needed
improvement, potential dangers and incidents of unethical conduct in their area of expertise.
Audits can disrupt the normal flow of business in a company, but the ability to spot and
address potential weaknesses can outweigh any temporary losses of productivity.

Roles of Accounting Department:

While some people may have a differing opinion, the essential roles and duties of virtually
any accounting department should include the following:

 Money out – making payments and keeping the bills paid

 Money in – processing incoming payments
 Payroll – make sure everyone gets paid (including the government)
 Reporting – preparing financial reports, e.g. P&L, Balance sheets and budgets
 Financial Controls – to avoid errors, fraud and theft
Responsibilities of Accounting Department:
1. Accounts Payable (money out) – In order to maintain great relationships with
vendors making sure that everyone gets paid on time is a vital role. The role of the
accounting department includes keeping an eye on opportunities to save money, for
example, determining if there are discounts or incentives available for paying certain
vendors more quickly. At the very least, AP should be scheduled to assure that the
least amount of money has to go out per payment, i.e., no late payment charges!

2. Accounts Receivable and Revenue Tracking (money in) – Another critical duty of the
accounting department is to account for and track receivables, including outstanding
invoices and any required collection actions. Accounts receivable is responsible for
creating and tracking invoices. The responsibility here includes assuring that
customers pay those invoices on time, so a system of friendly reminders is crucial.

3. Payroll – Payroll is a critical function of the accounting department and includes

making sure all employees are paid accurately and timely. In addition, proper tax is
assessed and tax payments are on time with state and federal government agencies.

4. Reporting and Financial Statements – The primary reason you collect data properly in
your accounting software is to prepare financial reports that can be used for
budgeting, forecasting and other decision making processes. In addition, these and
other reports are needed for communication to investors, banks and other
professionals that play a role in the growth of your business.

5. Financial Controls – Financial controls include reconciliations, dividing the

responsibilities and following the GAAP standards of accounting principles, all of
which are implemented with view toward compliance, fraud and theft prevention.
The role of the Controller is to ensure procedures are set up properly to manage that
process without errors.
PRODUCTION
DEPARTMENT
INTRODUCTION :

Production is a main function of an organization. Where goods are received and

manufactured to meet the firm’s objective. Employees working in this department are guided
by well qualified, well experienced technicians. The material used by the production
department is wet leathers they are purchased from nearby places.

ROLES AND RESPONSIBILITIES:

 Research and Development

 Production (Manufacturing)
 Quality Control (Testing)
 Shipping
 Customer Support
 Marketing
 Sales

NO. OF EMPLOYEES:

In production department more than 95 workers are working. All the labors are
well trained and skilled. Jobs are assigned on the basis of their skill.

Wet blue section:

It is the place where the semi finished leathers are purchased and stored for
further process. Goods are purchased from nearby places like Ambur, Vaniyambadi and
Ranipet. Based on the customer’s requirements leathers will be purchased.

Types of leathers:

Various types of leather are purchased to meet customer’s requirements. They are like

 Goat
 Cow
 Sheep
 Buffalo
CHART - 3

LEATHER CHART:

PREPARTORY STAGES

PRETANNING TANNING POST TANNING

CURING
CRUSTING
CHROME TANNING

SOAKING

DYEING
ALUMINIUM
LIMING
TANNING

FINISHING

DELIMING VEGETABLE

TANNING

PREGRAINING

BATTING

PICKLING
PRODUCTION PROCESS:

The leather manufacturing process is divided into three fundamental

sub-processes: pre tanning stages, tanning, and post tanning. All true leathers will
undergone these sub-processes. A further sub-process, surface coating can be added into the
leather process sequence, but not all leathers receive surface treatment. Since many types of
leather exist, it is difficult to create a list of operations that all leathers must undergone.

It’s initially divided into three stages they are

 First stages - pre tanning.

 Second stages - tanning.
 Final stages - post tanning.

PRE TANNING:

The pre tanning stages are when the hide/ skin is prepared for tanning. During
the preparatory stages many of the unwanted raw skin components are removed. Many
options for pretreatment of the skin exist. Not all of the options may be performed.
Preparatory stages may include.

1. Preservation:

 The natural fibers of leathers will break down with the passage of time.
Acidic leathers are particularly vulnerable to red rot. Which causes powdering
of the surface and a change in consistency? Damage from red rot is
aggravated by high temperatures and relative humidity’s and is irreversible.
 Exposure to long periods of low relative humidity (below 40%) can cause
leather to become desiccated, irreversibly changing the fibrous structure of
leather.
 Various treatments are available such as conditioners, but these are not
recommended by conservators since they impregnate the structure of the
leather artifact with active chemicals, are sticky, and attract stains.
 2. Soaking:
 Water for purposes of washing or rehydration is reintroduced.

3. Liming:
In limit for parchment or leather processing the hides are soaked in an alkali
solution by a drum / paddle or pit – based operation where four main objectives are met.

The objectives are :

 Removal of interfibrillary proteins.

 Removal of keratin proteins.
 Collagen swelling due to the alkaline pH.
 Collagen fiber bundle splitting.
 Liming operations of cattle hides usually last 18 hours and are generally
associated with alkaline phase of beam house operations.
 Unwanted proteins and “opening up“is achieved.

4. Unhairing:
 In the tanning industry the unhairing stage concerns the removal of animal hair from
the skin by chemical burning of the hair root or chemical degradation of the hair shaft
 Historically, scalding and singeing were other methods used to remove hair from
hides. These methods are skill used today to some extent, in hides not destined to be
used for leather.

5. Fleshing:
 Subcutaneous material is removed.

6. Splitting:
 The hide/ skin is cut into two or more horizontal layers.

7. Reliming:
 The hide / skin is further treated to achieve more “opening up “or more
protein removal.
 8. Deliming:
 Liming and unhairing chemicals are removed from the pelt.
9. Bating:
 Proteolytic proteins are introduced to the skin to remove further proteins and
to assists with softening of the pelt.

10. Degreasing:
 Natural fats / oils are stripped or as much as is possible from the hide/skin.

11. Pickling:
 Lowering of the pH value to the acidic region. Must be done in the presence
of salts. Pickling is normally done to help with the penetration of certain
tanning agents e.g. chromium (and other metals), aldehydic and some
polymeric tanning agents.

TANNING:

Tanning is the process that converts the protein of the raw hide or skin into a stable
material which will not putrefy and is suitable for a wide variety of end applications. The
principal difference between raw hides and tanned hides is that raw hides dry out to form a
hard inflexible material that can putrefy when re-wetted (wetted back), while tanned material
dries out to a flexible form that does not become putrid when wetted back. A large number of
different tanning methods and materials can be used; the choice is ultimately dependent on
the end application of the leather.

The most commonly used tanning material is chromium, which leaves the leather,
once tanned, a pale blue colour (due to the chromium), this product is commonly called “wet
blue”.

The acidity of hides once they have finished pickling will typically be between
pH of 2.8-3.2. At this point the hides are loaded in a drum and immersed in a float containing
the tanning liquor. The hides are allowed to soak (while the drum slowly rotates about its
axle) and the tanning liquor slowly penetrates through the full substance of the hide. Regular
checks will be made to see the penetration by cutting the cross section of a hide and
observing the degree of penetration. Once an even degree of penetration is observed, the pH
of the float is slowly raised in a process called basification. This basification process fixes the
tanning material to the leather, and the more tanning material fixed, the higher the
hydrothermal stability and increased shrinkage temperature resistance of the leather. The pH
of the leather when chrome tanned would typically finish somewhere between 3.8-4.2.[7]

POST TANNING:

CRUSTING:

Drying of leather

Crusting is when the hide/skin is thinned, retanned and lubricated. Often a coloring operation
is included in the crusting sub-process. The chemicals added during crusting have to be fixed
in place. The culmination of the crusting sub-process is the drying and softening operations.
Crusting may include the following operations:

 Wetting back - semi-processed leather is rehydrated.

 Sammying - 45-55 % (m/m) water is squeezed out the leather.
 Splitting - the leather is split into one or more horizontal layers.
 Shaving - the leather is thinned using a machine which cuts leather fibers off.
 Neutralization - the pH of the leather is adjusted to a value between 4.5 and 6.5.
 Retanning - additional tanning agents are added to impart properties.
 Dyeing - the leather is coloured.
 Fat liquoring - fats/oils and waxes are fixed to the leather fibers.
 Filling - heavy/dense chemicals that make the leather harder and heavier are added.
 Stuffing - fats/oils and waxes are added between the fibers.
 Stripping - superficially fixed tannins are removed.
 Whitening - the colour of the leather is lightened.
 Fixation - all unbound chemicals are chemically bonded/trapped or removed from the
leather
 Setting - area, grain flatness are imparted and excess water removed.
 Drying - the leather is dried to various moisture levels (commonly 14-25%).
 Conditioning - water is added to the leather to a level of 18-28%.
 Softening - physical softening of the leather by separating the leather fibers.
 Buffing - abrasion of the surfaces of the leather to reduce nap or grain defects.
 Surface coating:

For some leathers a surface coating is applied. Tanners refer to this as finishing.
Finishing operations may include:
CHART - 4

Oiling

Brushing

Padding

Impregnation

Buffing

Spraying

Roller Coating

Curtain Coating

Polishing

Plating

Embossing

Ironing

Combing (Hari on)

Glazing
INVENTORY MANAGEMENT:

Store department is placed nearest to production place. Nag leathers has two different
stores, they are like

 Store for leather

 Store for chemicals

 Store for leathers

Leathers are purchased from nearest place of production area and kept stored. This
section is called as wet blue section where goods are received and weighted for storage.

 Stores for chemicals

There is a separate store for chemical, where all the chemicals required for production
are stored. The various chemicals are like dyeing colors and oils etc…

CONCLUSION:

At the end of this training at HIRENCE LEATHERS. I got the good satisfaction of having
learned the practical application of my field of study. This training immensely benefited me
and I strongly hope that it will help me greatly in pursuance of my career in future

While concluding this report. I would like to thank once again the Managing Directors,
General Manager and all other staffs of HIRENCE LEATHERS, Head of Department
of(management studies), Lecturer and all others Staffs for their immense help and guidance
in making My internship program a grant success.

At last but not least I also thank to my beloved parents for their constant Encouragement and
conditions support during the course of the project.

Finally I should also like to express my sincere thanks to all my friends who extended their
willing co-operating in completing this project.