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Future Outlook

Introduction

This chapter covers the growth prospects and future plans of the small and medium enterprises (SMEs) operating in the leather and textile industry of the Kolkata cluster.

Future plans

According to the survey results, majority of the surveyed companies from both the leather goods and textile sectors in the Kolkata cluster is planning to increase installed capacities to meet future demand.

According to the surveyed companies from both the leather and textile sectors in the cluster, training on marketing, technology, design and quality control is the most important factor that is likely to boost the growth of MSMEs in the cluster.

Section A: Leather Industry

Majority of the companies expect industry to grow by less than 10% in next 5 years

D&B India attempted to understand the views of the players on the growth prospects of the industry as a part of the survey. The leather industry participants were found to be quite optimistic about the growth prospects in the survey. Around 57% companies in the cluster expected the leather industry to grow between 0-10%, around 20% projected the industry to grow by more than 20%, while around 17% respondents projected the industry to grow between 11-20%.

Future plans

Most of the surveyed companies in the leather industry plan to go in for capacity expansion in future.

Majority of the companies in the leather goods sector feel that training on marketing, technology, design and quality control is the most important factor that will boost the growth of MSMEs.

Section B: Textile Industry

40% textile SMEs expect the industry to grow by more than 20% in the next 5 years
Even though majority of the surveyed companies (about 40%) expect the industry to grow by more than 20%, 33% companies expect the industry to grow by 0-10% and 17% companies expect growth to be stagnant.

Future plans

According to the survey results, most respondent companies in the textile industry are primarily planning to enter new markets, and then expand their existing capacity to meet market demand in the future.

Most of the surveyed textile companies feel that the future growth of the MSMEs in the cluster will be driven by access to adequate infrastructure support. Besides, training on marketing, technology, design and quality control could also boost the growth of SMEs, according to the surveyed textile companies.