Rapid Assessment Study on Handloom Sector

RAPID ASSESSMENT REPORT

ON HANDLOOM SECTOR

1|Page TNRTP- Salem District

 Rapid Assessment Study on Handloom Sector

Introduction:
Introduction
The Indian textile and clothing industry is one of the mainstays of the national economy having
established itself as a leading export sector and with a large consumption base domestically. The
sector has made significant contribution to the economy accounting for 6% of GDP and 13% of
exports. The strength of the sector lies across its entire value chain from natural to man-made fibre
to apparel to home furnishings. Besides, the sector is the second largest provider of employment
after agriculture, employing nearly 51 million people directly and 68 million people indirectly.
These numbers clearly indicate that growth and all-round development of the textile industry will
have a direct bearing on and lead to improvement of the Indian economy.

The textile sector is currently estimated at around US$ 150 billion3 and is expected to reach US$
250 billion by 2019. The industry’s manufacturing setup is second largest in the world, following
China. The industry has an installed capacity of 512 lakh spindles, 8.6 lakh rotors, 0.68 lakh looms
in organized sector, 25.23 lakh power looms and 23.77 lakh handlooms.

The textile sector comprises four important segments – modern textile mills, independent power
looms, handlooms and garments. The sector involves large number of artisans from rural and semi-
urban areas, most of which are women and people from economically disadvantaged groups. Some
of the strengths of this industry are availability of cheap and abundant labour, use of local
resources, low capital investment, unique craftsmanship in manufacturing of the products and
increasing appreciation by international consumers.

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 Rapid Assessment Study on Handloom Sector

Handloom
HandloomSector in TamilNadu:
Industry in Tamilnadu:
Tamil Nadu was the 3rd largest industrial state in the country. The gross output of its
industrial sector was Rs.37,986 crores, accounting for 10.3% of the national output. Handloom
industry in Tamil Nadu plays an important role in improving economic conditions of the rural poor
by providing employment about 65 lakh people are directly or indirectly employed in the
Handloom Sector as weavers and allied workers. Tamil Nadu has identified 22 locations for
establishing handloom clusters with financial assistance from the Centre.

The average annual production of handloom cloth in the State is about 2500 lakh metres,
of which, contribution made by handloom cooperatives is around 1200 lakh meters. Average
annual sales of handloom cloth are Rs.1500 crore, of which, the sales by handloom cooperatives
accounts for Rs.700 crore. The average annual export of handloom cloth by Tamil Nadu is Rs.600
crore, of which export sales by Handloom cooperatives through Merchant Export is around Rs.260
crore.

Handloom
HandloomIndustry
IndustryininSalem:
Salem:

The handloom industry is one of the most ancient cottage industries in Salem
district of Tamil Nadu. Sari, dhoti and angavasthram are made out of silk yarn and cotton yarn. In
the recent past, home furnishing items are also woven, mainly for export purposes. More than
75,000 handlooms are working and the total value of cloth produced per annum is estimated at
Rs.5,000 crores

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Salem
SalemSilk
SilkDhoti
Dhotis:
Salem is famous for its handloom weaving which is found in Rasipuram, Namakkal and
Thiruchengode. It is believed that the name of Salem itself was derived from the name of the
“Salya” weaving community. In the 17th century, the mercantile companies of England and France
competed with each other to buy the products of the Salem Handloom. Sri Anandharangam Pillai,
the Pondicerry dhvibashi (interpreter) for the French Government, described in his diary how the
French competed with the British in buying textiles from Salem weavers.

Salem Silk Dhotis are produced from time immemorial by the local traditional weaving
community known as “Sourashtra” Community. The Silk dhotis of Salem are justly famed for their
luster, whiteness, technical excellence and novelty of border designs viz., Nagachattai, Kammal,
Diamond with Roja, muthu with gold pettu etc. At the time of manufacturing Salem silk dhotis are
white in color. After washing they will be gradually changed to light sandal color and thereafter
deep yellow color as it was in the beginning state of silk yarn before bleaching.

The chief attraction of the Salem silk Dhoti is its luster. it is believed that the water used
in the region is responsible for enhancing lusture to raw silk and may be one of the reasons for the
whiteness and shining of silk dhoti. The jari in the border and pallu in the form of kambi is also
unique. In Tamil Nadu, Silk Sarees are generally produced in places like Kancheepuram,
Thirubhuvanam, Arni etc, however, white silk textiles are unique to Salem Region.

Kondalampatti
KondalampattiSarees:
Sarees:

Kondalampatti is a small census town in the district and it is famous for its silk handloom
products. Kondalampatti handlooms are well known for the durability of the colors used in the
yarn. The mixture of color gives the durability. The count of the threads in a square inch used in
weaving gives the softness and hardness of the fabric. In Kondalampatti sarees 60 to 65 threads
are used in a square inch in warp. The width of the saree comes to 51 inches. Each and every thread
of the Kondalampatti handloom saree is hand woven. It requires approximately 4–8 days of effort
for weaving a saree.

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 Rapid Assessment Study on Handloom Sector

ElampillaiSarees:
Elampillai Sarees:
Elampillai is a small village situated in the district of Salem in India.It is around 25 KM
from Salem town. It is a thinly populated village. The people here are engaged in agriculture and
handloom weaving. Elampillai silk sarees which are very famous and is available at wholesale and
retail in the market and one can easily purchase Elampillai silk sarees.

Elampillai is well known for handloom products in silk, cotton, polyester. The specialty of
Elampillai Saree is the Butta designs in the pallu and border

Elampillai handlooms are well known for the durability of the colors used in the yarn. The
mixture of color gives the durability. The count used in weaving gives the softness and hardness
of the fabric.

District Executive Officer on Field Visit at Mecheri- Handloom Weaving

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 Rapid Assessment Study on Handloom Sector

Total No. of Villages where

Handloom activities has been
Present Marketing
carried out (With Village Total No. of Families
S & Trading Tie-
Block Name) involved in Handloom
. NO ups/ Selling
production
Methods

No Name

1 Kaamalaapuram 3

2 M. Chettipatty 27

3 Sikkampatti 11

4 Kottai Mariyamman Koil 3

5 Panchampatti 7 Direct Selling from

house, procured by
1 Omalur 6 Periya Eripatti 12 Vendors from
Elampillai, Salem &
7 Thindamangalam 25 Erode

8 Tholasampatti 30

9 Pa. Maramangaalam 30

10 Pagalpatti 21

1 Pallipatti Panchayat

Kaalandiyur
Nariyanur 87
Kaarapattiyan Street
Burudaiyan sreet
Kaminayakkanpatti
Yelumathiyan Nadu

2 Mallikuntham Panchayat

Kuppakalipatti
Mallikuntham Direct Selling from
Maakkalpatti 95 house, Vendors

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 Rapid Assessment Study on Handloom Sector
Pallakkadu from Elampillai,
Vellalapatti Salem, Mecheri &
2 Mecheri Theeppathanpatti Erode

3 Olaipatti Panchayat

Vazhadhasampatti
Chinthamaniyur 153
Akkaraiyanur
Olaipatti
5th mile

4 Paanapuram panchayat

Nadar Thoppu
Koolivalavu 55
Veerappanur

5 Virudhasampatti

Mallappanur
Kuppanur
Kundri Valaivu 380
Kattur
Puthur
Mottukkadu

6 Koppampatti panchayat

Malaiyanur
Kambilikaranvalaivu 24
Pollachi Valaivu

7 M. N. Patti panchayat

Kovilur Wages,
Mottur 20 Getting orders from
vendors
8 Thethigiripatti panchayat

Thethigiripatti
Aarikoundanur 25

9 Vellar Panchayat

Vellar

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 Rapid Assessment Study on Handloom Sector
Vellappampatti 35

10 Bukkampatti Panchayat

Bukkampatti 30

1 Kurukkupatti 35

2 Ramireddipatti 190

3 Pappampatti 65

4 Mallikuttai 200
Direct Selling, By
5 Maanathal 195 orders

6 Amarakundhi 98

3 Tharamangalam 7 Azhagusamudram 23

8 Karukkalvadi 65

9 Kongappadi 92

10 Selavadai 41

11 Arurpatti 46

12 Thesavilakku 15

13 Aiyampatti 21

14 Thuttampatti 2

Total 2161

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 Rapid Assessment Study on Handloom Sector

Study at Mecheri:

Think silk, and for the average person in Tamil Nadu, Kanchipuram comes to mind. But
when it comes to weaving pure silk saris, Salem is no behind. Traditional weavers at
Chinthamaniyur, Panchukalipatty and Semmandapatty villages in the district have carved a niche
for themselves with saris that bear the ‘silk’ mark. They say a little-known fact is that many shops
in Kanchipuram sell saris made in Salem.

Weavers:

These fourth-generation weavers had been selling silk saris across the world. "In those
days, there were no weavers in Kanchipuram," M Saravanan, a weaver at Chinthamaniyur, told.
He says Kanchipuram is famous more for selling silk than for weaving it. Silk saris woven in
Chinthamaniyur, Panchukalipatty and Semmandapatty villages are being sold in almost all major
cities across the country and exported to many countries, including Singapore, Malaysia, Australia,
USA, UK and UAE.

Travelling on the Salem-Mettur state highway, just after Omalur, huge advertisement hoardings
welcome you. Panchukalipatty village comes first. Its streets are lined with shops selling silk saris.
Chinthamaniyur is 4km away and Semmandapatty, another 3km.
These villages have more than 20 big shops. Over 10,000 families weave silk saris round the clock.
Wholesale shops will be buzzing with activity round the year, especially in marriage seasons.

A variety of saris are on sale - soft silk sari, pure jute silk sari, dupeon silk sari, pure Kanchipuram
silk sari, wedding designer sari, party design sari, half-half design sari and brocade design. These
cost anywhere between Rs 2,000 and Rs 2 lakh.
The shops at Chinthamaniyur, Semmandapatty and Panchukalipatty sell saris at wholesale prices.

Seller: C P Saravanan

"Retail shops will price our sarees at least 40% more," said C P Saravanan, owner, K
Perumal Silks, at Chinthamaniyur, whose family has been in the business since 1967. He says
people flock to the village from across the state to buy saris because of the attractive prices and
good quality.

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 Rapid Assessment Study on Handloom Sector

Buyer: S Jamuna

S Jamuna came to Chinthamaniyur from Salem to buy saris for a function at her house. She
said she had been coming to the village for more than a decade to buy saris as they were pure –
the saris had ‘silver’ woven with the silk thread. "They also have ‘silk mark’ to confirm its
authenticity," she said. Besides, all the shops stock fresh supplies.

Awareness of handloom products

:  Handloom products are known to all but usage is significantly nominal
 Handloom/ khadi products gives a different but mature look and hence was found
suitable for elders only
 Handloom products conceptualized as something which is coarse, not fine, with
different but limited designs and color
 Publicity of handloom products were too poor to recall
 To gain popularity, handloom products have to be better designed, more abundantly
available, and maintenance free.
Reason for using handloom products:
:  To look dignified
 For going to temples / religious places
 Only to look simple and matured
 Home décor stuff made of handlooms are very beautiful and they add a value to the house
 Handloom products look unique and people cannot easily copy the style. It’s basically a class
apart.
 Very comfortable during the summer months
 Suitable for festival and occasions at home, likewise while visiting friends and relative places
 Great attire for Office meetings
Promotion Methods:
 Social Media
:  E- Marketing
 Unique Brand Creation
 Advertisement with Brand Ambassador

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 Rapid Assessment Study on Handloom Sector

E-
Marketing

Social Media

Unique Brand Creation

Advertisement with Brand
Ambassador

Product Classification in Handloom Sector:

The handloom sector offers a variety of products, which can be broadly classified under
:
four broad categories – clothing, fashion accessories, made-ups and floor coverings.

Sarees, Dress material, Dhoti,

Clothing
Shirts, Trousers
Handloom

Fashion Scarves, Stoles, Gloves, Mitts,

Accessories Mittens, Hankerchiefs

Bed linen, Table linen,

Made - ups Kitchen linen, Upholstery

Floor Coverings Carpets, Mats, Mattings

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HandloomProducts:
Handloom Product Pros & Cons:
Fabric related attributes of handloom products are well acknowledged by the target group
but
: at the same time limited designs, colors and high maintenance leads to limited usage of the
same within the young generation of the country. The pros and cons of using handloom products
are listed below:
PROS CONS
 Fabric quality  High Maintenance
 Softness  Lack of contemporary designs
 Comfortable  Lack of different color combinations
 Unique design  Price very high
 Durability  Lack of availability
 Traditional designs  Not suitable for all occasions/climatic conditions

Feasibility:

:
Establish weaver cooperative societies
exclusively for women

Common Facility Centre- Raw Material

Bank

Enterprise Group based on Products

Providing Skill Training through CSS

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SWOTAnalysis:
SWOT Analysis:

:
STRENGTH
Exclusive products with traditional
technology not replicable in power
looms.
Large skilled, semi-skilled work force in
the sector.
Hourly labor cost less than most of the
other competitors and have low product
cost.
Little or no demand for energy.
Diversified products at different clusters
of India
WEAKNESS
Inadequate and qualitative raw material
provision to weavers through out year
Lack of market intelligence
Slow process on product diversification
and technical innovations
No control on overheads, pricing, heavy
inventory, damaged stocks
No BEP analysis and maintaining MIS
Government only takes care for 30% of
weavers under co-operative fold

OPPORTUNITIES
Good domestic market and scope for
export market
Govt policies in favor of the sector
Institutional finance through NABARD
Cluster Development Program
Service through WSC, IIHT, NHDC,
Textile Committee and HEPC
New Textiles policies and Handloom
reservation Act
Export
THREATS
Migration of weavers to other trades
Imitation of products, design by
composite and power loom industry
Import of goods at cheaper price after
globalization
Resistance in adopting eco-friendly
process
Income level of weavers is going lower
day by day
99% of rural producers are not aware of
impact on LPG

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The production of handloom products involves multiple phases from procurement of raw
materials to marketing of the products. In case of the master weaver system, the master weaver
undertakes the procurement of raw materials, recruits weavers and also engages in obtaining orders
from customers. In this arrangement, the employees recruited by the master weaver design and
produce the product and receive payments from the master weaver for their service. However, it
has been observed that the master weaver system has been contracting in the present times driven
by an increase in the price of raw materials and fall in prices of finished handloom products.

Raw material Design & Production Distribution & Market

Export

Independent Weavers Craftsman/ Artisan

Craftsman Local mela

Master Weaver Govt. set up design Govt org & Co-

Banks Operative Society

Co- Operative society Co- Operative society Pvt. Ltd companies

Pvt. Ltd companies Pvt. Ltd companies Handloom & Export

promotion council

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Major Challenges faced by the Handloom Business Holder:
Concerns and Challenges
:
Shortage of inputs and
problem of working capital
Lack of credit
Marketing Issues
Greater competition from
power looms and mill sector
Technological backwardness
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Description
The high costs of inputs such as yarn, cotton, silk, art silk, chemicals
& dyes and zari and irregular supply of working capital affects the
operations and continuity of the industry thereby leading to a decline
in the production of handloom products.
Shortage of credit facilities and expensive cost of obtaining credit is a
key concern for handloom sector. Also, lack of financial literacy
increases credit related challenges among the weavers.
Some of the concerns regarding the low volume of sale of finished
handloom products stem from the fact that weavers lack awareness
and information on customer preferences, there are at times
inconsistency in quality of the product as well as inefficiencies in the
supply chain.
The modernization of the textile industry with increased usage of
advanced technology in production of cloth has led to serious threat
to the traditional handloom industry.
The looms deployed in the production of handloom products are old,
worn out and unproductive which require more labour to operate.
TNRTP- Salem
 Rapid Assessment Study on Handloom Sector

Suggestions and Promoting Handloom Business in Ssalem TNRTP Block:

Area for Intervention Suggestions

:
Providing Market Providing marketing linkages and intelligence to the weavers will
Intelligence to Weavers help them earn a sustainable earning from the craft and produce
market relevant products.

Regular Supply of Raw Good quality yarn is the basic raw material for weavers who are
Materials spread across the country. NHDC is responsible for providing /
supplying yarn to the weavers but currently only 15% of the yarn
needed by weavers is provided by NHDC.
Introduce New Design While preserving the traditional designs, there is a need to
Elements simultaneously evolve with the time. Weavers should be engaged
in design workshops and guided to experiment to improve
marketability of new products.

Leverage e-commerce E-commerce platforms must be used to increase the outreach to newer
platforms customers and markets.

Use of multi-channel Tie-ups can be promoted with large malls, fast food joints to earmark some
marketing space of display and sale of handloom products. As these places see good
footfalls, it will help in promoting handlooms sales.

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Conclusion:
CONCLUSIONS:
Presently, various components under National Handloom Development Program all
: India has given a new direction through holistic approach for stabilization and development
over
of small and medium enterprisers involved in various trades with ‘Make in India’ concept.
As per provision under cluster development program, diagnostic study is being
conducted first with the broad objectives to identify the critical issues, developing capsules for
different issues linked with business cycle at various handloom clusters, strategy for application
of the capsules, vision building of each cluster and provide sustainable livelihood to the weavers
including all the remedies for the identified weaknesses and threats to that business concerns. Here
is a clear and conducive atmosphere in the study area Mecheri for growth in Textile and Handloom
Sector as an Enterprise Group activity.

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