Shoe Manufacturing Business in India – How to Start (2025)

Start a shoe manufacturing business in India. Learn costs, equipment, suppliers, registrations, and step-by-step process to set up. The footwear industry in India is booming, driven by increasing domestic demand and growing exports. India is already the second-largest producer of footwear in the world, which makes it a fantastic location to set up a shoe manufacturing business.

Unlike reselling or running a boutique, manufacturing allows you to have full control over design, quality, and branding. As a result, you can achieve much higher profit margins. However, success requires planning, investment, and an understanding of the production process.

This guide will help you learn:

Why shoe manufacturing is a profitable opportunity in 2025
Step-by-step process to start your unit or factory
Costs and machinery needed for setup
Legal requirements in India
Challenges and how to overcome them

Why Start a Shoe Manufacturing Business?

There are several reasons why footwear manufacturing is a smart choice:

High demand: India’s growing middle class and youth population create constant demand.
Export opportunities: Indian shoes are shipped to the USA, Europe, and the Middle East.
Quality control: You decide the materials, designs, and production standards.
Stronger margins: Selling under your own label allows 40%–70% profits.
Government support: Programs like the Indian Footwear Leather Development Program (IFLDP) make it easier to scale.

Clearly, manufacturing is a more sustainable and profitable path than simple reselling.

Step-by-Step Process to Start a Shoe Manufacturing Business in India

Step 1 – Choose Your Niche

Selecting the right category helps you target specific customers. Options include:

Leather shoes (formal or luxury)
Sports shoes and sneakers
Women’s footwear (heels, flats, ethnic designs)
Children’s shoes
Industrial and safety shoes

Each category has different demand levels, so research your market before deciding.

Step 2 – Create a Business Plan

A written plan ensures smoother execution. It should cover:

Investment requirements and funding options
Raw material sourcing strategy
Machinery and workforce needs
Target audience (domestic buyers or export markets)
Sales and distribution channels

For example, if you plan to export leather shoes, your plan will focus on global buyers and export compliance.

Step 3 – Register Your Business and Get Licenses

Legal registration protects your business and builds trust. In India, you will need:

Company registration: LLP, Partnership, or Private Limited is best for manufacturers.
GST number: Required for buying materials and selling finished shoes.
Factory license: From your local municipal authority.
Trademark registration: Safeguards your brand name and logo.
Import Export Code (IEC): Essential if you want to export.

Without proper licenses, expanding your business becomes difficult.

Step 4 – Set Up the Manufacturing Unit

Location and infrastructure play a huge role in efficiency.

Location: Agra, Kanpur, Chennai, and Ranipet are established footwear hubs.
Size: Small-scale units need 500–1,000 sq. ft. Large-scale factories require 5,000 sq. ft. or more.
Facilities: Ensure power supply, water, storage, and ventilation are available.

By choosing the right location, you also gain access to skilled labor and suppliers.

Step 5 – Purchase Machinery & Equipment

Core machines include:

Cutting and stitching machines
Lasting machines
Sole attaching machines
Finishing and polishing tools
Quality testing equipment

The cost of machinery ranges between ₹5,00,000 and ₹15,00,000 depending on production capacity.

Step 6 – Source Raw Materials

Quality materials are crucial for customer satisfaction. You will need:

Leather or synthetic uppers
Rubber, PU, or PVC soles
Adhesives and stitching supplies
Accessories like laces and zippers
Packaging boxes and branding material

In addition, suppliers can be found in Agra, Kanpur, Tamil Nadu, or on IndiaMART and TradeIndia.

Step 7 – Hire Skilled Labor

A well-trained team ensures better product quality. Common roles include:

Shoe designers
Cutting and stitching operators
Machine operators
Quality checkers
Packaging staff

Although labor costs vary, investing in skilled workers reduces errors and improves brand reputation.

Step 8 – Build Sales & Distribution Channels

Manufacturing is only profitable if you sell consistently. You can:

Supply to wholesalers and retailers
Sell online via Shopify, Amazon, or Flipkart
Export shoes internationally
Offer private label manufacturing for other brands

Therefore, consider using multiple channels to reduce dependency on a single source of revenue.

Costs of Starting a Shoe Manufacturing Business in India

Expense Type	Estimated Cost
Factory Setup (rent etc.)	₹2,00,000 – ₹10,00,000
Machinery & Equipment	₹5,00,000 – ₹15,00,000
Raw Materials	₹1,00,000 – ₹5,00,000
Labor & Staff	₹50,000 – ₹2,00,000/mo
Marketing & Branding	₹50,000+

👉 A small-scale setup usually requires ₹10–20 lakh, while larger factories can go beyond ₹50 lakh.

Is Shoe Manufacturing Profitable?

Yes, the business can be very profitable when managed well.

Margins: Typically 40%–70%, depending on category and design.
Example: Manufacturing cost = ₹500/pair → Selling price = ₹1,200 → Profit = ₹700.
As a result: Producing 1,000 pairs per month can generate ₹7,00,000+ revenue and ₹3–4 lakh profit.

Challenges in Shoe Manufacturing Business

High investment: Start with limited designs to reduce initial costs.
Quality control: Use strict testing processes and skilled staff.
Intense competition: Differentiate through design, comfort, or eco-friendly materials.
Supply chain delays: Work with multiple vendors to avoid shortages.

By preparing in advance, you can overcome these challenges effectively.

FAQs About Shoe Manufacturing Business in India

1. How much does it cost to start a shoe manufacturing business in India?
Small units require ₹10–20 lakh. Large factories may need ₹50 lakh or more.

2. What machines are required for shoe manufacturing?
Cutting, stitching, lasting, sole attaching, finishing, and polishing machines are essential.

3. Do I need GST for shoe manufacturing?
Yes. GST registration is mandatory for purchasing raw materials and selling products.

4. Which city is best for shoe manufacturing in India?
Agra, Kanpur, Chennai, and Ranipet are top footwear hubs.

5. Is shoe manufacturing profitable in India?
Yes. Margins of 40%–70% make it a very profitable business, especially with exports.

Conclusion

Starting a shoe manufacturing business in India in 2025 offers incredible opportunities. The demand for footwear is increasing every year, both within India and internationally.

To succeed, you should:

Select your niche and prepare a business plan
Register your company and secure licenses
Invest in machinery, raw materials, and skilled workers
Build strong sales channels, including online and exports

In conclusion, with the right strategy, your factory can grow into India’s next leading footwear brand.

👉 Next Steps:

Download the Free Shoe Business Checklist (PDF).
Explore our guide to Shoe Manufacturers in India.
Read the Pillar Guide: How to Start a Shoe Business in 2025.

With the right strategy, your factory could be the foundation of India’s next big footwear brand.