A cluster of luxury and quality leather products has developed in Hazaribagh of the capital.
Annual turnover in this cluster is about Tk 60 crore. The SME Foundation is supporting the cluster’s product upgradation, diversification and development of entrepreneurship-employee skills.
This information was revealed at a seminar on ‘Possibilities and Actions of Leather Product Cluster in Hazaribagh Area’ held at the ParjatanBhaban in the capital on Friday. SME Foundation Chariman Professor Dr. Md. Masudur Rahman presided over the seminar while director general of the Department of Environment Dr. Abdul Hamid was present as the chief guest.
Deputy General Manager of SME Foundation Abu ManjurSaif in this keynote presentation showed that according to SME Foundation’s cluster mapping study, various products including leather shoes, belts, wallets, jackets, and official bags are produced in the leather cluster developed in the old tannery village in Hazaribagh of the capital.
There are about 350 to 400 shops, showrooms and small factories of leather goods in the entire area from
Hazaribagh Tannery circle to Leather Technology College, Hazaribagh Bazar, Dhanmondi No. 15 Bus Stand Lane.
Managing Director of SME Foundation Dr. Md. Mofizur Rahman said that the annual turnover of the cluster is around Tk 50 to Tk 60 crore. Apart from supplying high quality leather products to the domestic market, several entrepreneurs of the cluster also export products abroad.
Almost all entrepreneurs of Hazaribagh leather cluster do wholesale and retail directly from their own showrooms. Besides, on contract basis, the entrepreneurs provide leather versatile products for various reputed brands of the country. Besides, several entrepreneurs of the cluster export products abroad. SME Foundation is implementing various programs for the development of the cluster.
The association has already been established with the help of the foundation. Online-marketing training is being provided at Foundation Hazaribagh Cluster with the aim of marketing cluster products online including training in product quality. Besides, the entrepreneurs of the cluster participate in national and regional SME product fairs organized by the foundation. Loans are being distributed to leather goods entrepreneurs under the Credit Wholesaling Programme.
Dr. Md. Masudur Rahman further said that by 2026, Bangladesh may not have duty-free export of manufactured garments in the European market after Bangladesh is upgraded from a less developed country to a developing country. In this case the leather industry can be a potential sector along with readymade garments or as an alternative.
According to entrepreneurs, quality improvement of leather products, diversification of products, removal of policy barriers, compliance follow-up, loans on easy terms, duty and tax exemption and cash incentives along with transport and port logistics facilities, this potential sector contributes to the country's economy and can play an important role in earning more foreign exchange.
Director General of the Department of Environment Dr. Abdul Hamid said that the government is trying to allocate space for entrepreneurs next to the tannery village of Savar besides making it easier to obtain environmental clearance for small leather products factories here.
He also assured that appropriate activities will be taken for the development of the leather products cluster.
