HIDE AND SKIN PROCESSING BUSINESS PLAN

TABLE OF CONTENTS

1.     Executive Summary

2.     Business Description

2.1    Background

2.2    Legal Status and Ownership

2.3    Location and Justification

2.4    Products and Services

3.     Industry Overview

3.1    Local Industry Outlook

3.2    Global Market Potential

3.3    Competitive Landscape

4.     Vision, Mission, and Objectives

4.1    Vision Statement

4.2    Mission Statement

4.3    Core Values

4.4    Business Objectives

5.     Market Analysis

5.1    Market Segmentation

5.2    Market Needs

5.3    Target Market Profile

5.4    SWOT Analysis

6.     Marketing Strategy

6.1    Branding and Positioning

6.2    Pricing Strategy

6.3    Promotion and Awareness

6.4    Sales Strategy

7.     Operational Plan

7.1    Raw Material Sourcing

7.2    Processing Stages

7.3    Facilities and Equipment

7.4    Staffing Plan

8.     Financial Plan

8.1    Startup Capital Requirements

8.2    Revenue Forecast (Year 1)

8.3    Operating Costs (Monthly)

8.4    Profit Projection (Year 1)

9.     Risk Analysis and Mitigation

10.    Appendices

Appendix A – Detailed Startup Budget

Appendix B – Machinery & Tools List

Appendix C – Sample NEPC Export Requirements

Appendix D – Sales and Distribution Channels

Conclusion

1. Executive Summary

Northern HideWorks Ltd. is a proposed medium-scale enterprise that will specialize in the processing, grading, preservation, and sale of cow hides and goat/sheep skins for both domestic and international leather industries. Kano State, historically known as a leading center for leather and hide trade in Sub-Saharan Africa, provides the perfect location for such a business due to its strategic location, abundant livestock population, and established trade networks.

The business aims to tap into Nigeria’s enormous potential in the global leather market, which remains largely underexploited. We plan to start operations with a daily processing capacity of 500 cow hides and 300 goat/sheep skins, scaling with demand and international partnerships.

The business will create employment for over 35 direct workers in its first year and aims to export to Morocco, Italy, and India, where Nigerian leather has historically had high demand due to its fiber density and texture. The enterprise will ensure quality through the use of basic tannery-grade equipment, skilled labor, and modern preservation methods.

With an initial investment of ₦42 million, Northern HideWorks Ltd. projects a Year 1 revenue of ₦110 million, breaking even in month 10. Our long-term goal is to expand into semi-finished leather tanning and finished leather product exports.

2. Business Description

2.1 Background

Hides and skins, especially cow hides (popularly called "pomo") and goat/sheep skins, are valuable agricultural by-products of Nigeria’s meat processing industry. These materials serve as the raw material for the global leather industry, which is valued at over $400 billion globally.

Kano has historically been a leather hub, dating back to the 14th century with trade networks reaching Timbuktu, Tripoli, and Cairo. Despite a rich heritage, modern Nigeria processes less than 10% of its leather to export-grade standards, with most hides deteriorating due to poor preservation.

This business intends to bridge that value gap by collecting hides and skins from abattoirs, preserving and grading them, and then selling to leather processors and exporters. The venture also targets supplying "pomo" for local culinary markets, a secondary but highly profitable revenue stream.

2.2 Legal Status and Ownership

Northern HideWorks Ltd. will be incorporated as a Limited Liability Company (LLC) with the Corporate Affairs Commission (CAC) Nigeria. It will also be registered with NEPC (Nigerian Export Promotion Council) for compliance and export licensing, as well as relevant sanitary inspection bodies.

Ownership will be 100% private, with Abubakar Musa Yahaya as the founder and CEO, while provisions are made for equity partnerships with logistics and international leather players in the future.

2.3 Location and Justification

Kofar Ruwa Industrial Layout in Kano is strategically selected due to:

• Proximity to major abattoirs like Kofar Dawanau and Bachirawa
• Easy access to skilled tannery labor and chemical suppliers
• Existing leather goods markets (Kantin Kwari, Kurmi Market)
• Access to export logistics through Mallam Aminu Kano International Airport and road networks to Lagos Port

The location also benefits from State Government industrial development support, including electricity subsidies and tax holidays for agro-allied processors.

2.4 Products and Services

Our core offerings include:

a) Raw Hide and Skin Processing

• Cow Hide: Fresh and preserved, Grade A & B
• Goat/Sheep Skins: Air-dried or salted
• "Wetin Pomo": Food-grade cow hide for culinary sale

b) Preservation and Grading

• Salting, sun-drying, air-drying
• Fiber and blemish-based grading into Grade A–C
• Chemical pre-treatment for improved shelf life

c) Custom Supply & Export Packaging

• We provide OEM packaging and labeling for export clients
• Export support services such as NEPC licensing and documentation