Overview
INDUSTRIAL GLOVE MAKING BUSINESS
Overview
It is on the basis of these two considerations, if undertaken by a business, that defines the quality of its products and justifies its quantity:
· Health and safety measures adapted by the firm for its employees and workers
· The quality-oriented measures adapted by the firm in terms of their product to be defect-free I.e contamination-free, bacteria and fungus-free etc
It is because of these two considerations that a firm will be able to increase their productivity, through employee safety and increase their sales, through product safety which has boosted the market for industry gloves, globally.
An industrial glove is a protective wear for hands which ensures employee safety against cuts, burns, sharp metals heat and avoid the spreading of germs, bacteria in a production/manufacturing/healthcare space.
These safety measures which are undertaken through the use of industrial gloves is what has made this market value at $6.9 billion in 2019, globally.
India, currently doesn’t hold a major market share in terms of industrial glove manufacturing but with its pace at manufacturing and production it might surely have to and you can make it happen, this is how
I. Market potential and uses
The categorical segmentation of the industrial gloves on the basis of its material and the end consumption across the industries is what has increased the existing potential of this very industry.
Let’s see how.
Segmentation of the industrial glove market:
Ø By usability
· Disposable
· Useable
Ø By Material ( disposable )
· Natural rubber
· Nitrile
· Vinyl
· Neoprene
· Polyethylene
· Others
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Ø By protection
· General purpose/ mechanical protection
· Chemical/ liquid protection
· Product protection
Ø By Glove type
· Dipped gloves
· Knitted gloves
· Supported knitted gloves
· Others
Now let’s see how this segmentation differentiates the uses of industrial gloves across different industries
Ø By uses / applications
· The solvent resistant and odour free properties of industrial gloves are used in food, hospital, medical devices
· The rubber gloves are used in chemical production avoiding infusion of chemicals in the skin
· Being bad conductor of electricity, less elastic these gloves are used in factories against and technical and electrical operation
· Because of its ability to reduce injuries and strengthen the grip of workers used heavily in machinery orientated industry
· The durability, sweat absorbing, abrasion resistant and superb puncture quality, the supported knitted gloves are used in manufacturing and factory spaces
II. Licenses required
The licenses required to run an industrial glove making business would be :
· Registration under Product certification scheme of BIS
· MSME registration
· GST registration
· Factory license
· PAN and Aadhar card
III. Investment required
| CONTENT | AMOUNT | |
| 1. Fixed capital investment | ₹ 2lakhs – ₹ 5 lakhs | |
| 2. Working capital investment | ₹ 5 lakhs |
IV. Profits made
| CONTENT | AMOUNT | |
| 1) Net profit per year | ₹ 6 lakhs | |
| 2) Return on investment | 74 % |
V. Target consumers
The material, usability, glove type segmentation of the industrial gloves has made the implementation of these gloves across all the industries possible, making the entire industrial market as its target consumers.
So, The consumers on whom you’ll be targeting the production of your industrial gloves would be :
· Machinery oriented workplaces : Make use of these industrial gloves as a safety against heat, cuts and sores while equipment and machine handling procedures involved in their respective production processes
· Metal fabrication : The workers of this industry are provided with these gloves to ensure their safety against burns, metal cuts and scars etc
· Automotive industry : The demand from this industry for industrial gloves come from its properties of excellent grip, oil and grease resistance while dealing with the car bodies, tools etc
· Chemical industry: They require industrial gloves to prevent any infusion of chemical to the worker’s skin avoiding all sorts of skin anomalies, diseases etc
· Food processing industry: The food industry makes use of industrial gloves because of its odour free, solvent resistant properties and to practise health and hygiene which is particularly essential in a food industry
· Healthcare industry: The health care industry requires and demands for disposable industrial gloves so as to avoid any virus and infectious transmission among patients, staff etc
· Cleaning industry: They make use of industrial gloves to avoid handprints and ensure effective cleaning of equipments, glasses at commercial and industrial spaces
VI. Area required
The area required to set up an industrial glove making business is 500 sq m- 1000 sq m
VII. Raw materials required
The raw materials required to run an industrial glove making business:
· Chrome tanned split leather
· Thread
· Dyes
· Rubber, latex etc
· Measuring scales (14” 16” 18” common sizes)
· Packing material
VIII. Machinery required
The machinery required to run an industrial glove making business:
· Flat bed single needle industrial sewing machine
· Dyers
· Material fabrication machinery
· Coolers and boilers
IX. Manpower required
The manpower required to run an industrial glove making business would be :
· 6- unskilled workers
· 5- stitchers
· 3- clickers
· 5- salesmen
· 1- accountant
· 1- production manager
Moreover, training to these workers in terms of equipment usage, machine handling and safety and precautions measures must also be provided with
X. Business model and growth
The business model of an industry glove manufacturing unit can be defined using 4 variants which is as follows :
A. Value proposition: The unique selling point and the value which an industrial glove making business is likely to provide you with is :
· Firstly, the productivity and the sale of every industries lies in the hands of their workers, which is not possible without the industrial gloves. Increasing the demand thereby because of its essentialism and affordability
· Secondly, the purchase of these gloves across every industry is made in bulk, giving you the advantage of high inventory turnover and increased sales
B. Target consumers: The consumers at whom your industrial glove production can be targeted are :
· Healthcare industry
· Cleaning industry
· Food processing industry
· Oil and gas industry
· Chemical industry
· Metal fabrication industry
· Automotive industry
C. Competitor review: The competition in this business is less because of the innumerable target customers, you can choose the ones you want to cater to without worrying about the barriers to entry.
However the big sharks of this industry are :
· Ansell ltd
· RFB Latex ltd
· Primas gloves pvt ltd
· Barun Melsungen AG
· Medline industries ltd
D. Marketing strategy: The marketing strategy for an industrial glove making business whose buyers are usually bulk purchases would be as follows :
· Sales promotion: Selling quotas highlighting the cash and trade discounts along with incentives of free delivery, sample gloves etc on bulk orders
· Advertising: Justifying the Quality of gloves, clinical proves, backed by R&D reports and certificates and highlighting the utility of the glove type to the specific industry you are targeting at ex : Rubber property to chemical industry, grip and strength properties : automotive and manufacturing industries etc
Growth
The industrial glove industry has an immense potential and has witnessed efficient growth as follows:
· The Indian disposable glove market generated $303 million in 2017 and is expected to reach $760 million by 2025
· The demand for industrial gloves in manufacturing spaces, health care has increased because of the safety and health regulation laid down by the government for their operations to take place
· The driving factor for the growth in industrial glove market is also because of every industry’s efforts to become technologically independent and setting up their own production plants and units
XI. Profit margin
An industrial glove making business is likely to yield you a profit margin of 17 %
XII. Suggestions
Becoming a part of this huge industrial glove market surely requires a thorough decision making, let us help you, here are some fact checks
· Firstly, this industry caters to a huge target market, the use of industrial gloves is implemented across every industry and if not it will soon because of the health and safety regulations which have now become a must more than ever
· Secondly, because of the virus outbreak, COVID-19, the demand for disposable industrial gloves has been widespread to ensure hygiene and safety, so this is probably the best time to get into this business
· Lastly, because of India’s initiative of “ Local is vocal “ the production and manufacturing at home is going to take place at a wider range, thereby reducing imports, generating employment which in turn generates demand for industrial gloves
XIII. Contact details
What are you waiting for ? Put your gloves on and contact us at :
Name – StartupYo
Contact – +91 8886666821
Email – contact@startupyo.com