Introduction Groundnut (Arachis hypogaea ) is a member of the legume or bean family. It is widely used as a source for oil, food, lubricants etc. Groundnut is a major source in bridging the vegetable oil deficit in India and hence, is cultivated extensively in the country. India produces around 6 million tons of groundnut annually ( Madhusudhana , 2013) and is the second largest producer in the world. Apart from groundnuts, the byproducts of the groundnut industry which include groundnut husk, kernels, cake, Haulms etc. have several useful applications. Groundnut husk has great potential for commercial use and is used as fuel, filler in cattle feed etc. The chemical composition of groundnut shell is 38.31% cellulose, 21.10% hemicellulose and 27.62% lignin ( Bano and Negi , 2016), making it a viable raw material for cellulose. Similar to groundnut, sugarcane ( Saccharum officinarum ) is also extensively produced in India. India is estimated to produce around 341.2 million tons in 2017/18. Sugarcane is mainly used for the production of sugar. The major byproduct of the sugar industry is sugarcane bagasse, which is used in alcohol production, paper industry, and generation of electricity. Bagasse consists around 35.2% cellulose, 24.5% is hemicellulose, and 22.2% is lignin and ash 20.9% ( Rezende et al., 2011). Cellulose can be extracted from these sources in a cost-effective manner due to the relatively low cost and high availability of raw materials. Cellulose is used in many industries like paper, fuel, leather and pharmaceutical. Cellulose has been applied as a filler in many products like thermoplastics ( Boldizar et al., 1987), adhesives ( Veigel et al., 2011). Currently, cellulose derivatives are being used in the leather finishing like nitrocellulose ( Gumel and Dambatta , 2013), methylcellulose, carboxymethyl cellulose ( Sarkar , 2005) and ethyl cellulose (Koch, 1937). Globally, leather is manufactured in a huge quantity and India is one of the major exporters of leather. The leather exported from India was estimated to be valued around 1.42 billion US$ in April-June quarter, 2017. In this present study, cellulose was extracted from the renewable wastes using acid hydrolysis followed by alkaline hydrolysis and bleaching, and ACCEPTED MANUSCRIPT 4 then the extracted cellulose was applied as a component in the intermediate coat of leather finishing. Leather finishing is the final process in leather manufacture which provides aesthetic property to the leather products. Finishing primarily involves three steps viz , base, intermediate and top coat. Base coat chemically modify the surface property of the crust (post tanned) leathers to fix the finishing chemicals. Finishing formulation for base coat consist of solvents. Intermediate coat majorly consists of binders for filling and enhance the physical properties. It also acts as a carrier for pigments and dyes to be fixed on leather. In addition, depending on the choice of binders and fillers, the finishing properties can be controlled for final application. Fillers in the finishing composition influence the uniform texture and levelling of dyes and pigments on the surface. Top coat is comprising of lacquers based on polyurethane and cellulose derivatives to provide protection to the leather finish. In the present study, the extracted cellulose is used as an ingredient in the intermediate coat in the leather finishing. The prepared formulation has been sprayed on the crust leathers and prepared as a films to understand the physical characteristics