? ?
?
Revival of Khadi & Village Industries
Quotes
?
"Khadi is a natural fabric and unique. The rustic, no machine look of the fabric is both sophisticated and bohemian." - Ritu Kumar , Fashion Designer "If the supply chain and production can be streamlined , the potential for khadi is high." ? B . S . Nagesh , CEO , Shoppers' Stop "Khadi has fallen to disrepair . It had to be repackaged , upgraded, cleaned up." - Vasundhara Raje , Minister for Small Scale Industries -
? ?
? ?
? ?
Research Objective
Revival of Khadi & Village Industries ? Post Liberalisation
? ?
? ?
Introduction
Khadi and village industries (KVI), originally promoted by Mahatma Gandhi in 1920s for rural self employment, form a significant subsector of the “The rural nonfarm sector “ (RFNS)
?
?
The 11th Five Year Plan identifies the KVI subsector as having significant prospects for employment, primarily because it provides employment to women, minorities, and the socioeconomically marginalized.
?
? ?
(i )
Khadi is hand spun and hand woven cloth. The raw materials (cotton, silk, or wool) are spun and woven on hand-spinning wheels called charkha and woven on handlooms.
? ?
(ii) A village industry is based on know-how and skills of artisans and rural raw materials and/or markets—pottery, blacksmithing, handmade leather goods, carpentry, various processed foods and condiments, cane and bamboo craft, goods made from various plant fibres, among others.
Background
§ During the Freedom Struggle, the development of Khadi and Village Industries had two objectives §
? self-reliance through local production ? seeking active participation of the poor in the struggle for Independence through removal of hunger and unemployment.
?
§ Accordingly, the Khadi and Village Industries Commission (KVIC) was created by an Act of Parliament to plan, promote and organise their systematic development and expansion.
Khadi – In 20 th Century
Khadi Goes For a Facelift
KVIC August 2001 Sarvodaya Khadi
goods Products like sticks, spices, , honey, and pickles. , face scrubs, dry f like incense essential oils herbal oil & soaps
Khadi –
st 21
Century
Research Process
§ Formulating the research problem
?
§ Extensive Literature survey
§ § § § § § § § § § § § §
Preparing the research design Data Collection Determining the sample size Execution of the project Analysis of data Preparation of the report
Literature Survey
§ Website o www.KVIC.org.in o www.khadi.com § Reports o Fibre 2 Fashion o Planning Commission o Khadi and Village Industries Commission o SSRN o ICMR
? ? ? ?
Preparing the Research Design
Design and Development of Survey Instruments Questionnaire DevelopmentSurvey Design Interview Schedule Development Sample Selection
Data Sources
Data Collection
Quantitative
Initial Analysis
Qualitative
Analysis
Data Analysis
Results
Discussion and Development of Model
Data Collection
§ Primary Data o Interviews ? face to face ? Telephonic o with shop owners and khadi buyers § Secondary Data o Online Papers o Online Reports
Determining the Sample Size
Since there are large number of entities we picked up handful of locations, namely
§FabIndia §KVIC §Khadi
site
Gramodyog
Execution of the Project
§ Finding information from different sources based on the following questionnaire
?
o Background ? Origin and need ? o Present Scenario ? Market Share, Competitors, Sales, Production, Employment ? o Future Prospects ? Financial sanctions by Government of India ? Uplifting village based employees.
?
Analysis of Data
§ Under Analysis of data we covered
?
o Inspecting, transforming, and modeling data with the goal of o o Suggesting conclusions and supporting decision making o o Taking advice from entrepreneurs related to Khadi directly or indirectly
Thank You
Problem Identification
§ According § § § designers, the production of Khadi was inconsistent and the cloth was prone to shrinkage and fabric stretch. Besides, fabric colours in khadi were also limited. Red tapism and bureaucracy prevalent in the Indian system, further hampered the growth of the Khadi sector. In spite of having a wide distribution network, there were problems, especially middleman . Corruption was rampant. There were many bogus Khadi units operating in the country , which made it extremely difficult to claim rebates from the Government of India (GoI). Issues pertaining to the product, its supply, its image perception and competition.
?
to
§
§ §
Issues & Concerns
§ An urgent need to remove supply constraints in the sector and make international networks to exploit the already existing export demand. § Inadequate quality testing capabilities at the Khadi Institution for cotton/sliver. § Inadequate training & raw material supply § Lack of proper pre-processing, and non-standardization of spinning equipment, packaging and pricing § Working capital shortage is a major problem for khadi institutions. § Competition faced due to: § mill-made fabrics § mill-made textiles and imported fabrics
? ?
§
Historical Sales Trend
Rs in Crores
?
Potential : Sales Domestic Sales
Agriculture and allied activities contributed only 20% to the overall GDP – FY 2009 The KVI production and sales grew by 19% and 22.6%, respectively during FY2008. Overall sales of KVI goods stood at Rs 228 billion and production at Rs 173 billion in FY2009. Village industries are responsible for nearly 90% of the sales and production FY 2009.
§ § § §
§ ?Export § Market size of textile sector in India is projected to be US$35 Billion from domestic market and US$30 Billion from exports by 2011. § Opening of the Indian economy to world markets § New opportunities for the khadi sector in enhancing its exports in the booming textile export growth of India in the post-multi-fibre agreement regime § Indian textile exports: US$ 7.85 Billion,< 4% of world textile exports
?
(14% of total Indian exports)
§ §
Indian clothing exports: US$ 8.29 ,< 3% of world textile exports
Government Support
§ KVIC allotted huge funds into research and development to improve the quality of Khadi. § § It allotted around Rs . 0 . 4 billion for promoting the fabric emphasizing its Unique Selling Proposition (USP), eco friendliness .
Solutions production centres and quality testing § Efficient use of existing
§ § § § § § § §
§ §
laboratories, through development of “Common Facility Centers”(CFCs) Implementation of new technology Effective Marketing through Private Sector Participation Market linked pricing instead of cost based pricing. Verifiable standards, like ISO, ISI, AGMARK have to be laid down. Guarantee “Hand spun and Hand Woven” trademark Formulate and publish Khadi Mark Scheme Training to Khadi institutions for product pricing and implementation Replacement of Rebate with Export Incentive (EI) for the selected export oriented khadi institutions will be a solution. The export incentive to be released on the submission of the export order as a 10 or 20% percentage of export order. Shift from Freedom Fabric to Fashion Fabric
Leveraging the Research Findings
§ The first and foremost requirement is thorough overhaul of the marketing strategy for khadi products. § Product development and marketing needs a professional approach. § The khadi and village industries programme holds great potential for o generating gainful employment opportunities for the rural poor o arresting migration of rural unskilled workers to urban areas o for promoting the strategy of sustainable development. § The Khadi Commission may be brought under the Ministry of Textiles while the Village Industries Commission may continue to work under the Ministry of Small Scale and Agro and Rural Industries.
? ? ?
SWOT Analysis
Strength ?Eco friendly ?Indian culture ?Versatility ?Tax exemption ?Economic growth ?Low cost ?Employment generation ?Fashion Weakness ?Lack of appreciation ?Labour – intensive ?Lack of infrastructure ?Lack of training in business methodologies ?Lack of awareness
Opportunity ?Potential for exports ?Emerging trend ?Capturing an untapped market ?Generation of employment ?Growing consumer preference
Threat ?Competition ?Survival in fast growing technology ?Legislative impact
doc_244774604.pptx
?
Revival of Khadi & Village Industries
Quotes
?
"Khadi is a natural fabric and unique. The rustic, no machine look of the fabric is both sophisticated and bohemian." - Ritu Kumar , Fashion Designer "If the supply chain and production can be streamlined , the potential for khadi is high." ? B . S . Nagesh , CEO , Shoppers' Stop "Khadi has fallen to disrepair . It had to be repackaged , upgraded, cleaned up." - Vasundhara Raje , Minister for Small Scale Industries -
? ?
? ?
? ?
Research Objective
Revival of Khadi & Village Industries ? Post Liberalisation
? ?
? ?
Introduction
Khadi and village industries (KVI), originally promoted by Mahatma Gandhi in 1920s for rural self employment, form a significant subsector of the “The rural nonfarm sector “ (RFNS)
?
?
The 11th Five Year Plan identifies the KVI subsector as having significant prospects for employment, primarily because it provides employment to women, minorities, and the socioeconomically marginalized.
?
? ?
(i )
Khadi is hand spun and hand woven cloth. The raw materials (cotton, silk, or wool) are spun and woven on hand-spinning wheels called charkha and woven on handlooms.
? ?
(ii) A village industry is based on know-how and skills of artisans and rural raw materials and/or markets—pottery, blacksmithing, handmade leather goods, carpentry, various processed foods and condiments, cane and bamboo craft, goods made from various plant fibres, among others.
Background
§ During the Freedom Struggle, the development of Khadi and Village Industries had two objectives §
? self-reliance through local production ? seeking active participation of the poor in the struggle for Independence through removal of hunger and unemployment.
?
§ Accordingly, the Khadi and Village Industries Commission (KVIC) was created by an Act of Parliament to plan, promote and organise their systematic development and expansion.
Khadi – In 20 th Century
Khadi Goes For a Facelift
KVIC August 2001 Sarvodaya Khadi
goods Products like sticks, spices, , honey, and pickles. , face scrubs, dry f like incense essential oils herbal oil & soaps
Khadi –
st 21
Century
Research Process
§ Formulating the research problem
?
§ Extensive Literature survey
§ § § § § § § § § § § § §
Preparing the research design Data Collection Determining the sample size Execution of the project Analysis of data Preparation of the report
Literature Survey
§ Website o www.KVIC.org.in o www.khadi.com § Reports o Fibre 2 Fashion o Planning Commission o Khadi and Village Industries Commission o SSRN o ICMR
? ? ? ?
Preparing the Research Design
Design and Development of Survey Instruments Questionnaire DevelopmentSurvey Design Interview Schedule Development Sample Selection
Data Sources
Data Collection
Quantitative
Initial Analysis
Qualitative
Analysis
Data Analysis
Results
Discussion and Development of Model
Data Collection
§ Primary Data o Interviews ? face to face ? Telephonic o with shop owners and khadi buyers § Secondary Data o Online Papers o Online Reports
Determining the Sample Size
Since there are large number of entities we picked up handful of locations, namely
§FabIndia §KVIC §Khadi
site
Gramodyog
Execution of the Project
§ Finding information from different sources based on the following questionnaire
?
o Background ? Origin and need ? o Present Scenario ? Market Share, Competitors, Sales, Production, Employment ? o Future Prospects ? Financial sanctions by Government of India ? Uplifting village based employees.
?
Analysis of Data
§ Under Analysis of data we covered
?
o Inspecting, transforming, and modeling data with the goal of o o Suggesting conclusions and supporting decision making o o Taking advice from entrepreneurs related to Khadi directly or indirectly
Thank You
Problem Identification
§ According § § § designers, the production of Khadi was inconsistent and the cloth was prone to shrinkage and fabric stretch. Besides, fabric colours in khadi were also limited. Red tapism and bureaucracy prevalent in the Indian system, further hampered the growth of the Khadi sector. In spite of having a wide distribution network, there were problems, especially middleman . Corruption was rampant. There were many bogus Khadi units operating in the country , which made it extremely difficult to claim rebates from the Government of India (GoI). Issues pertaining to the product, its supply, its image perception and competition.
?
to
§
§ §
Issues & Concerns
§ An urgent need to remove supply constraints in the sector and make international networks to exploit the already existing export demand. § Inadequate quality testing capabilities at the Khadi Institution for cotton/sliver. § Inadequate training & raw material supply § Lack of proper pre-processing, and non-standardization of spinning equipment, packaging and pricing § Working capital shortage is a major problem for khadi institutions. § Competition faced due to: § mill-made fabrics § mill-made textiles and imported fabrics
? ?
§
Historical Sales Trend
Rs in Crores
?
Potential : Sales Domestic Sales
Agriculture and allied activities contributed only 20% to the overall GDP – FY 2009 The KVI production and sales grew by 19% and 22.6%, respectively during FY2008. Overall sales of KVI goods stood at Rs 228 billion and production at Rs 173 billion in FY2009. Village industries are responsible for nearly 90% of the sales and production FY 2009.
§ § § §
§ ?Export § Market size of textile sector in India is projected to be US$35 Billion from domestic market and US$30 Billion from exports by 2011. § Opening of the Indian economy to world markets § New opportunities for the khadi sector in enhancing its exports in the booming textile export growth of India in the post-multi-fibre agreement regime § Indian textile exports: US$ 7.85 Billion,< 4% of world textile exports
?
(14% of total Indian exports)
§ §
Indian clothing exports: US$ 8.29 ,< 3% of world textile exports
Government Support
§ KVIC allotted huge funds into research and development to improve the quality of Khadi. § § It allotted around Rs . 0 . 4 billion for promoting the fabric emphasizing its Unique Selling Proposition (USP), eco friendliness .
Solutions production centres and quality testing § Efficient use of existing
§ § § § § § § §
§ §
laboratories, through development of “Common Facility Centers”(CFCs) Implementation of new technology Effective Marketing through Private Sector Participation Market linked pricing instead of cost based pricing. Verifiable standards, like ISO, ISI, AGMARK have to be laid down. Guarantee “Hand spun and Hand Woven” trademark Formulate and publish Khadi Mark Scheme Training to Khadi institutions for product pricing and implementation Replacement of Rebate with Export Incentive (EI) for the selected export oriented khadi institutions will be a solution. The export incentive to be released on the submission of the export order as a 10 or 20% percentage of export order. Shift from Freedom Fabric to Fashion Fabric
Leveraging the Research Findings
§ The first and foremost requirement is thorough overhaul of the marketing strategy for khadi products. § Product development and marketing needs a professional approach. § The khadi and village industries programme holds great potential for o generating gainful employment opportunities for the rural poor o arresting migration of rural unskilled workers to urban areas o for promoting the strategy of sustainable development. § The Khadi Commission may be brought under the Ministry of Textiles while the Village Industries Commission may continue to work under the Ministry of Small Scale and Agro and Rural Industries.
? ? ?
SWOT Analysis
Strength ?Eco friendly ?Indian culture ?Versatility ?Tax exemption ?Economic growth ?Low cost ?Employment generation ?Fashion Weakness ?Lack of appreciation ?Labour – intensive ?Lack of infrastructure ?Lack of training in business methodologies ?Lack of awareness
Opportunity ?Potential for exports ?Emerging trend ?Capturing an untapped market ?Generation of employment ?Growing consumer preference
Threat ?Competition ?Survival in fast growing technology ?Legislative impact
doc_244774604.pptx