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| Sunday, 4 September 2005 |
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Business |  |
| News Business Features Editorial
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Project to help SME leather producers by L. S. A. Wedaarachchi A project which helps small and micro level leather producers to create a market and upgrade their products, was launched recently by the Industrial Development Authority (IDA) in collaboration with the Moratuwa University and DSI Group, a leading local shoe house. A one day workshop was held in this connection last week at Homagama where thirty-five small and micro level leather producers, representatives of IDA, DSI and Moratuwa University participated. Production and technical difficulties faced by small and micro level leather producers were explained at length at the workshop. The scarcity and high prices of raw materials and lack of machinery and equipment were highlighted by the leather producers. The workshop noted that the leather products made by them cannot be sold at a reasonable price due to the non-availability of a proper marketing strategy for them. To give a helping hand to village based small and micro level leather producers the DSI group agreed to supply machinery and equipment to the Godagama Common Service Centre run by the IDA. The DSI group also agreed to reach a 'buy back' arrangement with the IDA and producers for their leather products. A sales centre will be set up at the Godagama Common Service Centre of the IDA where the raw materials are also available at concessionary rates. Explaining the main objective of the project, the IDA chairman Vasanta Jayasinghe said the facilities and concessions provided by the IDA, DSI Group and Moratuwa University encourage newcomers and small scale industrialists with entrepreneurial qualities with little investment, to succeed as promising entrepreneurs. The IDA plans to implement similar programs in the field of ornamental fish, flower exports and drinking water with the assistance of leading private sector companies. The IDA has signed an MoU with the Moratuwa University in regard to this project. Quality control, product development, arranging computer aided designs and other facilities for small and micro level producers are the main areas being concentrated by the Moratuwa University under the MoU. IDA's novel concept is to tie up small scale producers with large scale private sector companies to enable them to be stakeholders in the relevant trade. As the official Authority the IDA expects to have the managing authority of small and micro level producer companies for only two to three years by which time the producers themselves would be trained to take over the management of their companies. |
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