Locally Synthesized Leather Enzymes
Proprietary alkaline protease enzymes for dehairing and bating operations. Designed to replace imported products, lowering chemical loading and operational costs by up to 50%.
The Import Dependency Problem
Bangladesh's tannery sector (primarily centered at Savar Leather Industrial City, Chittagong, and Narayanganj) exports finished leather and footwear worth USD 1 Billion annually. Enzymes are non-negotiable inputs, replacing harsh chemicals in the dehairing stage to improve hide quality and satisfy ESG compliance for Western buyers.
Currently, 100% of these enzymes are imported (primarily from Germany and India) at BDT 100–140 per litre. This drains BDT 200–400 Crore in foreign exchange annually and exposes local tanneries to import lead times, global logistics disruptions, and currency fluctuations.
Strategic Advantages
- •Structural Cost Edge: Saves BDT 30–70 per litre compared to competitors using imported enzymes.
- •Supply Security: On-site production eliminates import shipping lag and custom clearances.
- •Eco-Compliance: Milder enzymatic treatments lower sulfide discharge in Effluent Treatment Plants (ETP) by up to 40%.
Imported vs. Local Cost Structure
Analysis of cost components per litre (in BDT) demonstrating local production efficiency.
| Cost Component (per Litre) | Imported Enzyme (Low - BDT/L) | Imported Enzyme (High - BDT/L) | Saud Prime Biotech Local (BDT/L) |
|---|---|---|---|
| Production / Purchase Price | 100 | 140 | 50 |
| Technology Royalty | — | — | 20 |
| Import Duties & Freight | Included | Included | 0 |
| Effective Total Cost per Litre | 100 | 140 | 70 |
| NET SAVINGS per Litre | BDT 30/L (vs. low import) | BDT 70/L (vs. high import) | BDT 50/L (Average Savings) |
Note: Production cost of BDT 50/L reflects fully loaded raw materials, utilities, labor, and depreciation inside the bioprocessing unit. The BDT 20/L royalty covers technology licensing, process know-how, and complete operational management.
Investment & Savings Analysis by Production Tier
Tanneries can select an investment tier matching their annual enzyme consumption. Payback is achieved purely through cost savings.
| Production Tier Capacity | Annual Volume (L) | Required Capital | Annual Import Cost | Annual Local Cost | Annual Net Savings | 5-Year Net Savings | Payback Period |
|---|---|---|---|---|---|---|---|
| Tier 1 - 100 Ton/Month | 1,200,000 Litres | BDT 10 Crore | BDT 14.40 Cr | BDT 8.40 Cr | BDT 6.00 Cr | BDT 30.00 Cr | 1.67 Years (20 Months) |
| Tier 2 - 300 Ton/Month | 3,600,000 Litres | BDT 30 Crore | BDT 43.20 Cr | BDT 25.20 Cr | BDT 18.00 Cr | BDT 90.00 Cr | 1.67 Years (20 Months) |
| Tier 3 - 500 Ton/Month | 6,000,000 Litres | BDT 50 Crore | BDT 72.00 Cr | BDT 42.00 Cr | BDT 30.00 Cr | BDT 150.00 Cr | 1.67 Years (20 Months) |
| Tier 4 - 1,000 Ton/Month | 12,000,000 Litres | BDT 100 Crore | BDT 144.00 Cr | BDT 84.00 Cr | BDT 60.00 Cr | BDT 300.00 Cr | 1.67 Years (20 Months) |
Additional Revenue: Commercial Enzyme Sales
An investor who builds capacity beyond their own requirements can supply enzymes to other third-party tanneries. Because Bangladesh's entire tannery cluster is currently import-dependent, demand for locally synthesized, competitively priced enzymes is substantial.
Partnership Structure & Responsibilities
The franchise model is designed to give the investor maximum financial savings with zero operational headache.
Investing Tannery's Role
- Provide capital investment (per selected tier) to establish the unit.
- Provide land / space inside or near the tannery for the bioprocessing unit.
- Off-take committed volume of enzymes per agreed manufacturing schedule.
- Pay BDT 70/L for enzyme received (which includes BDT 20/L technology royalty).
- Retain full legal ownership of the physical bioprocessing plant asset.
- Retain rights to sell surplus enzymes commercially to third-party tanneries.
Saud Prime Biotech's Role
- Complete plant engineering, design, and commissioning end-to-end.
- Supply all proprietary fermentation technology and process know-how.
- Procure high-grade raw materials and coordinate global supply chain.
- Manage day-to-day production operations, quality control, and testing.
- Handle all regulatory compliance, ETP operations, and waste disposal.
- Manage employee recruitment, technical training, and HR operations.
- Provide ongoing R&D to improve enzyme activity and reduce production costs.