ACKNOWLEDGEMENT

A successful project is a result of team work and co- ordination that includes not only the group
of developers who put forth the ideas, logic and efforts but also those who guides them. So, at
the completion of the Learning Diary, I feel obliged to extent gratitude towards all those who
made valuable contributions throughout the project. I am thankful for all the knowledge,
guidance, and support imparted by Dr. Krithika G K, MFM, NIFT Bengaluru.
What is handloom?
“Handloom” refers to the wooden frames, used by skilled artisans to weave fabrics like cotton, silk, wool,
jute among others. It is a cottage industry in India, dating back to the Indus valley civilization. Even in ancient
times, Indian fabrics were exported to countries like Rome, Egypt and China. Since colonization by
European nations, India had turned into an exporter of raw cotton and an importer of machine-made finished
goods.

A handloom is a type of loom used to weave cloth or patterns on cloth and is operated manually without the
aid of electric power. What started as a mechanism to furnish necessities has become a specialized tool for
the hand craftsman specializes in furnishing art and luxury fabrics. The growing textile industry has created
a vast demand for the handloom weavers which shaped the much of the 19 th century cotton industry. No
one exactly knows how or when weaving began, but the idea of weaving clearly predates the loom by at
least thousands of years. However, the once commodity-generating sector is dying owing to the rise of
more efficientmodernlooms.

Difference between Handloom and Powerloom

Indian Handloom Industry

The Indian handloom industry is one of the oldest and largest cottage industries in the country. The industry
is a hallmark of India’s centuries old traditions and culture with huge variety of designs, printing techniques,
weaving art and materials renowned globally. Almost every state of India has something unique to offer in
terms of handloom products. Phulkar from Punjab, Chanderi from Madhya Pradesh, Ikats from Andhra
Pradesh, Tie and Die from Rajasthan and Gujarat, Daccai from West Bengal, Brocade from Banares and
Jacquard from Uttar Pradesh are some of the examples of the intricate work done by Indian artisans and
weavers which are appreciated globally.

The operations of the industry are generally household based, wherein various members of the family
come together and contribute to the production process. These activities are spread across the length and
breadth of the country and involve transfer of skills from one generation to the next. The sector is largely
unorganised, and the workers are mainly from the economically and socially weaker sections of the society,
who weave for their household needs and also contribute to the production in the textile sector. The
weavers of this industry are keeping alive the traditional craft of different states. The level of artistry and
intricacy achieved in the handloom fabrics is unparalleled and certain weaves are still beyond the scope of
modern machines. Most of the handloom units are run either as sole proprietors or on partnership basis.
Amongst the many strengths of the sector include minimal use of capital and power, environment-friendly
production processes and flexibility to innovate and offer products as per market requirements.

The sector is one of the largest unorganized economic activity in the country providing employment directly
and indirectly to over 43.31 lakh weavers.5 It is an integral part of the livelihood of many people in the rural
areas of the country. Moreover, the quantity of cloth production by the sector has increased from 6.91
billion square meters in the year 2010-11 to nearly 8.01 billion square meters during the year 2016-17,
accounting for 17.4% of total cloth production.

Year Cloth Production – Handloom Sector (Billion Sq. Metres)

2010-11 6.91
2011-12 6.90
2012-13 6.95
2013-14 7.10
2014-15 7.20
2015-16 7.64
2016-17 8.01
Source: Office of Textile Commissioner, Government of India / EXIM Bank

Some of the key numbers / indicators as brought out by the Third Handlooms Census carried out by the
Government of India are presented in the table below. It is important to note that women constitute as much
as 77% of the adult weavers and allied workers in the handlooms sector.

Number of looms 23.77 lakh

20.66 lakh looms – rural areas, 3.11 lakh looms –
 urban areas
Number of persons engaged in weaving and 43.31 lakh
allied activities
36.33 lakh workers – rural areas, 6.98 lakh workers –
urban areas
Number of adult weavers and allied workers 38.47 lakh (77% - female, 23% - male)

10% - SC, 18% - ST, 45% - OBCs, 27% - Others

Man-days worked per weaver per annum 234 days

Large female workforce

The operations of this industry are primarily household based. The sector is one of the largest, albeit
unorganized, economic activity in the country providing employment directly and indirectly to over 43.31
lakh weavers1 from rural and semi-urban areas, most of which are women and people from economically
disadvantaged groups with as much as 77% of the adult weavers and allied workers in the sector being
women. Strengths of the sector include minimal use of capital and power, environment-friendly production
processes and flexibility to innovate and offer products as per market requirements.

Geographically diversified with a rich bouquet of product offerings

As per the Third Handloom Census, Government of India, nearly 27.83 lakh handloom households are
engaged in weaving and allied activities, out of which 87% are in rural areas and the remaining 13% are in
urban areas. A vast majority of the handlooms are located in the North Eastern Region (NER) of India,
which accounts for nearly 65.2% of the total handlooms that are operational in the country. NER accounts
for 49.8% of the total weavers in the country with Assam leading the share of handloom workers.

Top 6 states by number of

handlooms

Andhra
Prades Other
h s
5% 15%
Tripur Assa
a m
6% 47%
Tamil
NaduWest
6%Bengal
Manipur13%
8%

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.

Top 6 states by number of

workers
The handloom sector offers a variety of products, which can be
broadly classified under four broad categories – clothing, fashion Othe
accessories, made-ups and floor coverings. rs
Manipur Assa
5% 17%
m
Uttar 39%
Pradesh
6% West
Andhra Beng
Pradesh al
8% 17%
Tamil
Nadu 8%
 Sarees, Dress material, Dhoti,
Clothing Shirts, Trousers

Scarves, Stoles, Gloves, Mitts,

Fashion Accessories Mittens, Hankerchiefs

Bed linen, Table linen, Kitchen

Made-ups linen, Upholstery

Floor Coverings Carpets, Mats, Mattings

Product Classification in Handloom Sector

Major Handloom Cluster in India

As mentioned earlier, different parts of the country have different and unique offerings of handloom
products. A review of the products and specialities on offer and the main centres of production / clusters
is provided in the following table.

Region State(s) Product / Speciality Work Major Clusters

North India Jammu and Pashmina Weaving Srinagar
Kashmir
Uttar Pradesh Brocade, Jangla, Tanchoi, Vaskat, Varanasi
Cutwork, Tissue and Butidar
Haryana, Punjab Panja Weaving Panipat, Jaisalmer, Barmer
and Rajasthan Bandhej, Lehariya Jaipur, Jodhpur, Alwar,
Ajmer
Kota Doria Kaithun, Magrol, Siswali
North East India Assam Sualkuchi Guwahati
Mizoram Mizo Puan Weaving Thenzwal, Aizwal
Nagaland Loin Loom Weaving Dimapur, Kohima
East India Odisha Sambalpuri Weave Sambalpur, Kalahandi,
Phulbani, Bolangir
Koraput Weave Koraput
West Bengal Carpet Weaving Darjeeling
South India Kerala Coir Work Allapuzha
Dhurrie Weaving Warangal, Kothawada
Andhra Pradesh Pochampalli Weave Pochampalli
Mangalagiri Mangalagiri
Tamil Nadu Kanchipuram Kanchipuram
West India Gujarat Patola Weaving Patan
Mashru Weaving Patan
Maharashtra Paithani Yeola, Paithan
Central India Chhatisgarh Pata Weaving Bastar
Madhya Pradesh Maheshwari Weaving Maheshwari
Chanderi Weaving Chanderi

The handloom industry is undergoing a lot of changes to match up to the new requirements as per the
changing preferences and tastes of consumers. There is focus on upgrading the quality of products as well
as trying to reach out to new markets and consumption centres. Many private organisations and large
retailers have also engaged with the traditional weavers and artisans and are supporting them in marketing
their products to consumers worldwide. Also, e-commerce platforms are playing an important role in
providing new markets and customers to handloom weavers. For instance, e-commerce players like
Amazon and Flipkart have taken initiatives to promote Indian handloom products.
 Trade Performance of the Handloom Industry
Exports

The exports of Indian handloom products are valued at US$ 353.9 million 6 in 2017-18 making India the
second largest exporter of such products in the world. However, despite the huge demand of Indian
handloom products, the sector has not been able to increase footfall in the global market as there has been
a consistent decline in the exports during the last five years. This is largely due to increased competition
from neighbouring economies such as Pakistan, Sri Lanka and Bangladesh post removal of preferential
duty by Europe in 2014. Also lack of modernization, changing consumer preferences, high production costs
and market dynamics have contributed to the overall decline in the exports.

India's exports of handloom

products
37
5 370.
37 2 367.
0 4
36
5 36
36 0
355.
0 353.
35 6
9
5
35
0

34 2013- 2014- 2015- 2016- 2017-

5 14 15 16 17 18
Value of exports(in US
$ mn)

The major export destinations of the Indian handloom industry include US (26.3%), UK (7.4%), Spain
(7.0%), Italy (5.1%) and Germany (5.0%). Over 125 countries globally are buying handloom products from
India.

Source: TARI Research Team, based on DGCIS / EXIM Bank data

Major Export Destinations for Indian Handloom Products – 2017-18

Country Value (US$ mn) Share (%)

US 93.1 26.3
UK 26.1 7.4
Spain 21.2 6.0
Italy 18 5.1
Germany 17.8 5.0
UAE 16.7 4.7
France 16.3 4.6
Netherlands 13.7 3.9
Australia 11.6 3.3
Japan 11.6 3.3
World 353.9 100
Source: DGCIS / EXIM Bank
 Major Handloom Export Items from India – 2017-18

Product Value (US$ ‘000) Share (%)

Other made-up textile articles; sets; worn clothing 197563.3 55.82
and worn textile articles; rags
Carpets and Other Textile Floor Coverings 122249.2 34.54
Articles of apparel and clothing accessories, not 14820.9 4.19
knitted or crocheted
Woven fabrics of silk or of silk waste; of handloom 11973.1 3.38
Coon fabrics; of handloom 7125.3 2.01
Woven Handloom Fabric of Wool, fine or coarse animal 168.5 0.05
hair, horsehair yarn
Special Woven Fabrics, tufted textile fabrics; lace; 21.6 0.01
tapestries; trimmings; embroidery
Total 353921.8 100
Source: DGCIS / EXIM Bank

Carpets and other textile floor coverings were the second largest export segment, at 34.54%, while articles
of apparel and clothing accessories, not knitted or crocheted were the third largest segment of the exports,
with a significantly smaller share of mere 4.19%.

Some of the big names globally such as Ikea, Target Corporation, Walmart, Habitat, Town and Country
Linen are major clients of Indian handloom exports.

Government initiatives and schemes for Clusters

The Indian handloom industry is critical for the growth of the economy owing to its high potential for export,
foreign exchange earnings for India and its employment potential. The sector also plays a critical role in
women empowerment given that a very large proportion of weavers involved in this industry are women.
Given the importance attached to this sector, the Government has also played its role in supporting growth
of the sector through a series of policy measures introduced in the recent past. The budget outlay for the
sector in the Twelfth five-year plan was ₹ 4314.31 crores.

The Indian government has introduced various schemes and made interventions to preserve the rich
heritage of the Indian handloom industry and promote its culture. A brief analysis of the some of the major
programmes introduced over the years by the government is provided below. It may be noted that the
various initiatives taken by the government are directed towards areas such as cluster development,
availability of credit, promotion of exports, supporting environmental compliances, provisions of social
welfare schemes for weavers, infrastructure development, availability of raw materials, brand building,
marketing and R&D.

The following table provides an update on the Government of India’s development programs / schemes and
their impact.

Scheme Objective Progress/Outlay/Funds Progress/Beneficiaries Impacted

Released
Weaver Mudra Scheme Concessional ₹ 271.62 crores * 52059 weavers*
Credit
Block Level Cluster Financial ₹ 22.87 crores** 43 block clusters
projects Assistance sanctioned in the country**

Handloom Marketing Marketing 126 domestic marketing events

Assistance sanctioned ***
 E-Commerce Marketing 21 companies involved*** ₹ 16.77 crores of sales
achieved***
Indian Handloom Marketing 1007 registrations ₹ 296.69 crores of sales
Brand issued*** achieved***
Handloom Mark Marketing 9.85 crore labels sold and
19663 registrations
issued***
Yarn Supply Scheme Raw Material ₹ 162.07 crores**
Availability
Export Promotion Enhancing exports Participation in 18
international events during 2016-
17****
Geographical Indication of Legal protection 57 handloom products registered
goods and prevention of under GI*
unauthorised use
Handloom Weavers Welfare Scheme 5.32 lakh weavers enrolled
Welfare Scheme under MGBBY
144294 weavers enrolled under
HIC****
* - till date, ** - Period of 2017-18, ***-upto December 2017, ****-Period of
2016-17
Source: TARI Research Team, based on data from Annual Report 2017-18, Ministry of Textiles, GOI

1. National Handloom Development Programme (NHDP)

The objective of the programme is holistic and integrated development of handloom industry and welfare of
weavers. The programme supports weavers, both within and outside the cooperative fold including Self
Help Groups, NGOs etc. towards credit design inputs, technology upgradation, marketing support and skill
upgradation. The major components of the scheme are as follows:-

(i) Concessional Credit for handloom sector through the Weaver Mudra SchemeThe scheme was launched
in September 2015 with the aim to provide loans at concessional interest rate of 6% for a period of three
years. Also, money margin assistance to a maximum of ₹ 10000 per weaver and credit guarantee for a
period of three years is provided by the scheme. The scheme has benefitted over 52059 weavers and a
loan of ₹ 271.62 crores was sanctioned under the name of Weaver Mudra Scheme.

(ii) Block level cluster projects A cluster in the block is eligible to avail financial assistance up to ₹ 2.00
crores for Common Facility Centre (CFC) including Common Service Centre (CSC), engagement of
textile designer cum marketing initiative, construction of common and individual work shed, appointment
of Cluster Development Executive (CDE), technological and skill upgradation. Also financial assistance
up to ₹ 50.00 lakh is available for setting up of dye house at district level. 43 block clusters have been
sanctioned in the following states during the year 2017-18:-

S. no. State No. of block level Funds released as on No. of beneficiaries

clusters 31.12.2017 (in ₹ lakh) covered
sanctioned
1 Andhra Pradesh 3 141.7 665
2 Bihar 2 100.91 701
3 Chhattisgarh 2 52.40 529
4 Himachal Pradesh 1 31.20 200
5 Kerala 1 35.20 450
6 Madhya Pradesh 1 156.44 9603
7 Jammu & Kashmir 1 39.10 205
8 Karnataka 1 28.13 386
9 Tamil Nadu 4 128.86 1473
10 Uttar Pradesh 4 133.49 952
11 Arunachal Pradesh 2 69.50 1154
12 Assam 21 1370.95 19022
Total 43 2287.45 35300
 Source – Annual Report 2017-18, Ministry of Textiles, GoI

2. Mahatma Gandhi Bunakar Yojana:-

Provision of Insurance cover to weavers between 18 to 59 years. If Rs.40/- of Insurance Premium is borne
by weaver beneficiaries, then Rs.40/- by state government, Rs.150/- by Central Government and Rs.100/-
by LIC of insurance premium will be borne.Rs.60,000/- for natural death of members of
weavers,Rs.1,50,000/- for accidental death or permanent disability and for partial disability,Rs.75,000/- of
insurance benefit will be provided. Scholarships of Rs.1,200/- per annum will be provided to students
studying in 9,10,11,12 standards.

3. Health Insurance Scheme:-

Provison of health facilities to handloom weavers by collaborating with Health and Family Welfare
Department in the model of National Wellness Bima Scheme.

4. Training to Handloom weavers (stipend):-

Providing scholarships to Karnataka students studying in Indian Institute of Handloom Technology of
venkagirikote, selam and kannur.

5. Refund off unreal expenses of weaver’s death (handloom):-

If death occurs by members of weavers of co-operative society, then funeral expenses of Rs.5,000/- will be
given to those family members. First amount will be released to weaver’s family where death has been
occurred by co-operative society who has membership, then amount can be claimed from government.

6. Interest Subsidy on working capital borrowed by PHWCS under NABARD Refinance Scheme:-
The scheme provides reimbursement of interest @ 3% on CC limit borrowed by Primary weavers co-
operative societies from the District Central Banks through NABARD refinance scheme.

7.New Designs and Trends (Tour):-

Under this scheme assistance will be provided to the Primary societies for adoption and implementation of
latest designs as per the market trends and demands. Study tours are also organized to the weavers under
the scheme. Construction of “Garment design center” by collaborating with National Institute of Design.

8.Thrift Fund Scheme for Handloom Weavers:

For the year 2017-18, a budget of Rs.75.00 lakhs has been allocated for implementing the scheme, as
Government matching contribution. Under the scheme 8% of the wages earned by the weavers are
collected as subscription to thrift fund. An equal matching contribution by Government will be remitted to
the fund account maintained in Taluk Treasuries. 12% interest is being paid by the Government. The
scheme is operated through the Treasury.
The beneficiary can draw advances to meet expenses in connection with marriage, house construction,
medical expenses and education for children. The final amount becomes payable, along with interest, after
completion of 15 years as subscriber to the fund (or) on his/her becoming totally incapacitated to work due
to old age (or) after attaining the age of 60 years.

9. Interest subsidy on 1% and 3% loan provided by Co-operative banks:-

Weavers co-operative societies/Non-Agricultural credit Co-operative societies/Urban Co-operative banks
provides loan under 1% interest price upto Rs.2.00 lakhs and providing interest subsidy under 3% interest
price from Rs.2.00 lakhs to Rs.5.00 lakhs by state government.

10.Interest under Thrift Fund Scheme:-

Under Thrift fund Fund Scheme, 12% of interest will be paid by government to the amount in weaver’s
account.

11.Marketing of handloom products (20%Rebate):-

The object of the scheme is to increase sale of Handloom products there by increasing production and
continuous employment.
For the year 2017-18, Rs.700.00 lakhs budget provision has been made, which will be released to Co-
operative Societies, Cauvery Handlooms, Woollen federation, Bangalore and Non-Khadi woollen
federation, Challakere towards reimbursement of 20% rebate provided on sale of Handloom products
during selected 180 days in the year.

12.Kaimagga Vikasa Yojane

Now a days handloom are decreasing , in order to continue the handloom weaving activity and to develop
the sector and to attract the young weavers towards handloom weaving government is providing 50%
assistance on purchase of cotton/ silk/ woollen handlooms by the beneficiaries and 75% assistance for the
handloom co-operative societies.

13.Organizing of District level handloom Expo:-

State government, yearly during state’s important festivals and National Day’s organizes marketing of
Handloom products under 20% discount price for 8 days in respective districts in the period where business
is high from 180 days fixed period.

14.One time assistance to Handloom Co-Operative societies

In order to provide continuous employment to the handloom weavers of the co-operative societies & to
provide the marketing support to the handloom products produced by the weavers. State Government will
provide one time assistance to the handloom co-operative societies that can be utilized by the society as
the working capital or to deposit the amount in the bank to increase the borrowing capacity of the society.
This will be provided based on the last three years average turnover of the society to the maximum extent
of Rs.5.00 lakhs.

15.Pneumatic/Motorized Jacquard Kit

In order to decrease the stress of the handloom weavers and to increase the production capacity
government is intended to provide pneumatic / Motorized jacquard kit.
Of the total project cost government will provide 75% grant for the general weavers and 90% SC/ST
weavers.

16.Providing Electronic Jacquard for upgrading the Handloom Design.

In order to develop the market demand designed handloom products, the Government is intended to
provide electronic jacquard to the existing handlooms weavers. By this production will be increased and the
cost and time of designing will be reduced.

Source: http://www.karnatakadht.org/english/handlooms-schemes.php
Organisation and institution working in Handloom industry

Handloom Clusters in Karnataka

http://www.craftclustersofindia.in/site/Cluster_Directory.aspx?mu_id=3&idstate=12

This is the list of all the registered clusters of Karnataka.

YELAHANKA CLUSTER BRANDING METHODOLOGY

With reference to some of the popular Cluster case studies of India along with the Primary
research and conversation with respective stake holders of YHL cluster and Karnataka cluster
society stake holders, we came to following learning and the suggestions to go about.

Secondary Research( case studies) source: SIDBI

1. Bargarh Handloom Cluster

Bargarh Ikat Handloom Cluster of Orissa is home of more than 35,000 weavers and allied handloom
workers. 12500 looms are working (as per 2009 handloom survey report) in 299 different villages spread
over Bargarh, Attabira, Bijepur and Sohella block of Bargarh District. The main products of the cluster are
cotton sarees of tie and dye and small amount of dress materials, lungis and napkins, etc. The annual
production of the cluster is more than 15 crores rupees. The products of this area are mostly marketed in
Orissa and National market and a substantial portion is also exported. The cluster represents Orissa in
quantitative and qualitative tie and dye Ikat fabrics which is nowhere else available.

The principle stakeholders of the cluster are the weavers, master weavers and the National/ State
Awardees. The evolution of the weavers into master weavers and then of some of the master weavers into
the awardees tells about the organic relations that these core cluster actors enjoy amongst themselves.
This further shows how the growth of the cluster has provided opportunities to a weaver to develop into a
fine craftsperson and also an entrepreneur. Growth of the cluster today is primarily shared by the awardees
and the master weavers, who have moved out of the state to seek better markets for their fine products.
They have been able to earn reputation for the traditional craft at various levels and can be considered to
be the saviors of the Ikat tradition in the cluster.
Ikat, or Ikkat, is a style of weaving that uses a resist dyeing process similar to tie-dye on either the warp or
weft before the threads are woven to create a pattern or design. A Double Ikat (in Oriya, Baandha) is when
both the warp and the weft are tie-dyed before weaving.

Entrepreneur weavers (E-Weavers) are those weavers who buy their own raw material, work on their own
designs and market products on their own. Since they have an entrepreneurial element in their production
their earnings are much higher that labour weavers (c-weavers) who work for others, usually a trader or
mater weavers and get only wages for conversion. Master weavers those who buy raw material, and give it
to the labour weavers along with design or contractual weavers to get the weaving done and do the
marketing on their own.

Usually, directly or indirectly, each master weaver controls anything from 10-15 looms to about 35-40
looms. There are about 100 weavers who prepare exclusively tie & dye design and sell them to the
weavers/master weavers and also in the market. Most of these weavers, especially the tie and dyers are
from a particular community called “Bhulia Meher” community.
There are more than 40 traders who take care of marketing of Bargarh handloom fabrics in the cluster. Out
of these 25 traders procure fabrics directly from weavers in addition to procurement from the master
weavers. Some of these traders have retail outlets in Barpalli, Bijepur and Bargarh town. In addition to
selling local handloom fabrics, these traders also sell the handlooms of other states like Chhattisgarh,
Madhya Pradesh and Andhra Pradesh. More than 20 traders have business contacts in other cities like
Delhi, Kolkata, Mumbai with the wholesalers.
There is one association of Women Tie and Dyers and Weavers in Barpali called Maitree Bunakar Sangha.
Apart from this, there are 3 consortiums namely 1) Gangadhar Meher Ikat Club, 2) Sambalpuri Ikat Bunkar
Sangh, 3) Jhilimunda Traditional Weavers Group Jhilimunda Traditional Weavers covering total 42Master
weavers and Cooperative societies/SHGs.

Branding Strategy:

Brand Awareness and Branding Standards: For G.I. based clusters, the unique identity for which the
cluster has begged G.I., itself is a brand. However, how the brand is being used, determines the success of
the cluster. For successful enforcement of the brand there is a need of a central entity that can not only
popularize the brand but also ensure that the rules and regulations including quality and design standards
are followed by the stakeholders. The establishment of the smooth working operations among the relevant
stake holders associated with the brand, the ability to achieve a continued adherence to quality norms and
the processes like certifications/attestations enforces to ensure them are necessary to make use of the G.I.
as a brand. These need to be initiated with creation of right platform of stakeholders. Though there are
many functional associations in the cluster, but there is no single entity at the cluster level who takes all the
above initiatives at the cluster level, therefore the first step would be creation of such legal entity.

Brand endorsement and promotion: In many international G.I. based clusters, it is learnt that brand
endorsement plays a crucial role in not only popularizing the brand also establishing necessary credentials
of the same. Like in 1904 president Theodore Roosevelt of United States visited construction site of
Panama Canal and was pictured wearing Panama Hat, which increased the popularity of hats globally.
Celebrities promoted panama hats by wearing it during press conferences, events and in films. In 1925,
Turkey made panama hats their official headgear. Soon after, Panama Hats became symbol of masculine
elegance around the world and became one of the Ecuador‟s main export. Similar brand endorsement by
legends/ celebrities could help Bargarh Ikat gain popularity in the national and international market.

Product innovation: The skill of the tie & dye is very unique. Unlike the Tie-Dye work of other states of
India, the motif and designs of the cluster are infinite and every motif or design is categorized under a
special caption. The richness of the craftsmanship can be known as the number of falicitation and awards
the weavers have begged at national and international level. As mentioned earlier, there are three
Padmashree, One Kabiguru, more than 60 national awardees and hundreds of state awadees in the
cluster. The uniqueness of the craft and huge pool of awardees have created a brand image of the cluster
in the regional and to some extent in national market. However, the brand has limited recognition in
national and international market, especially as a unique and urbanized product for elite mass. This is
mainly due to the fact that Bargarh has confined itself to limited colour and design range and not being able
to innovate constantly as per the taste of the market. Ikat products need to be amenable for diversification
to suit latest fashion trends and thus will be able to create brand loyalty by the customer. The weavers need
to be orient towards this to design product appropriately.
Brand Enforcement: Branding exercise is not a onetime activity. It requires continuous efforts. Once a
brand is established, there are other problems like brand infringement or brand dilution where other
competitors try to take advantage of the brand name and sell their product. Bargarh Ikat has started faciling
similar infringement problems, where other clusters have started producing low quality Ikat and selling it in
the name of Bargarh. The cluster should take necessary steps to stop such dilutions.

Learning from Scotch whisky can be applied in this cluster. The dispute over the nature of Scotch whisky
versus another spirit trying to use the name whisky evolved in 1997. The association in of whisky firms filed
a case against the industry who was not from Scotland but selling the whisky in the name of Scotch.
Finally, the British High Court on March 1997 supported the petition and declared that no firm other than
Scotland can use the brand name of Scotch.

2. Alappuzha Coir Cluster

Alappuzha (also known as Alleppey) is the hub of Kerala's famous Coir

industry. Coconut fibre which is the raw material for coir is mainly supplied
from Tamil Nadu. Coir Industry enjoys the status as the largest Cottage
Industry in the State of Kerala, giving employment to over a million people.
Both men and women work in the industry. While women are mainly involved
in the yarn spinning work, the men do the product-weaving activities. The
cluster has good physical infrastructure. Most of the exports from this
cluster go through the nearby Kochi port which is a major logistic
advantage of the cluster.

Coir products are made from fibre from the husks of coconuts,using
for the most part production techniques that barely changed in the past century. Traditional products have
mainly revolved around the production of mats (largely door mats). Mats are made
from a mix of coir yarn (as the base) and rough fibers (as bristles),and matting (woven matting from coir
yarn is done on handlooms and used in interiors of houses, commercial spaces, and ships). Semi-
automated and fully-automated (or „power‟) looms have been recently introduced around in 2010-12.
Recent additions to the product range such as geo-textiles, rubberized coir, PVC mats and other mixed
products use combination of material like jute, rubber, PVC, other natural fibers like sisal, cotton though
with coir as the pre-dominant component (60%).

The coir value chain includes a wide variety of SMEs, from micro-
enterprises and women‟s self-help groups that spin yarn, to small-scale
businesses that weave matting, to large exporters who sell to global
retailers. At the bottom are the spinners consisting of micro enterprises,
about 46000 in numbers predominantly employed/run by women,
employing 0.1 million persons. Then there are small weavers numbering
9700, about 15 large weaving and tufting units, 265 finishing units out of
which 250 are SMEs and 15 large. Technology used in the small micro
units in spinning and weaving is very old and out-dated. Many of the
smaller, micro firms are organized as societies which number around 850. With a well developed
and established institutional mechanism for labour welfare, Kerala is well organized to provide
high living standards to its workforce, though it has its concomitant problems.

Branding Strategy

Creating and Enforcing a Common Brand: At this juncture, there is no enough interest generated and
sufficient number of firms coming forward to work together for the brand building exercise of the cluster in
domestic market. However, this can be done through strengthening of an appropriate cluster entity and
promoting cluster brand through it. The coir cluster has several associations, BMOs which are quite active.
There is also a federation of all these associations of coir producers. This federation can promote common
branding. However, before establishing it, clarity has to be brought into on several issues, as to how will the
brand be established, how and who would manage it, who would be the beneficiaries, how would it be
used, what would be the standards and norms of firms using the brand. The effects of branding if
appropriately linked to repositioning of product for the export market, it will help the coir cluster as a whole
with substantial value addition and would benefit the entire value chain.

Targeting and Positioning in Domestic Market: There does not seem to be any data on the size of
domestic market. However, it is estimated to be roughly 2 times of the export market, and calculated to be
around Rs 12000 millions. The share of Alapuzha cluster in this is unknown. The cluster has not shown
much interest in domestic marketing. There does not seem to be any major institutional marketing effort
apart from the Coir board, which has a domestic market sale of Rs. 210 millions, though it has an ambitious
th th
plan of increasing it to Rs 30000 millions by end of 12 plan. (The Hindu business line, 6 June, 2013).
Venturing into domestic market is not an easy proposition to the members of the coir cluster as they will not
have the competency or strength individually to set up a marketing channel. However it would be possible
for the cluster as a whole to look at the possibility of leveraging opportunities now being thrown open by
partnership with mega retail chains. A cluster branding effort would certainly prove useful. A market the size
mentioned above certainly cannot be dismissed and has to be exploited. However the industry has not
looked at domestic marketing seriously. A few firms have started marketing to the domestic market through
channels created on their own and seem to have tasted enough success, to look at domestic market more
closely.

Positioning as Eco-Friendly Natural Fibers: Natural fibers are being increasingly recognized as
favorable substitute to synthetics, which use unsustainable inputs. Besides, technical and cost advantages,
coir products have the added attraction of meeting growing consumer awareness with respect to
environmental, sustainability and social standards. The hard fibers: Acaba, Coir and Sisal, and bast fibres:
Jute and Kenaf, are all natural fibres which have various and multiple end uses. Their versatility and
environmentally friendly characteristics are strong advantages over synthetic alternatives. Each of the
fibres has their particular strengths but all have the benefit of being naturally derived and increasingly
recognised as a sustainable choice. (“Future Fibres” Food And Agriculture Organization, UN). This could be
promoted as USP of the cluster .

G.I. Based Branding: Coir board has already helped the cluster in getting GI-“Allepey Coir” is a
geographical Indication for the coir mats and mattings and carpeting produced in the handloom sector by
the traditional coir workers of Alappuzha and Chertala taluks of the district. Building a brand around this
would be the next logical step. The branding of the product would be amenable to blend nicely with the
“Kerala-God‟s Own Country” tourism promotion of the state.

Market Segmentation and Product Differentiation: Each natural fibre has its own particular advantage.
All products made out of natural fibre need promotion for increased use. The total fibre market is big
enough for products from all natural fibers to co-exist. However what will determine buyer preference is
how the product is positioned.
PRIMARY RESEARCH WITH STAKEHOLDERS

CLUSTER INTERACTION - Mr. Kartik Agali

Session- 5th October 2020, 2:30 – 4:30 PM

 The Govt. has given the weaver’s card to the weavers. There is a weaver’s room near the society, where
all the processes are done.
 A close watch is kept for the weaver’s room safety.
 The weavers are technically very strong with an experience of 40-45 years.

Pictures from the showroom

 This saree was made for National Competition to represent Karnataka. There is Karnataka map, it has
Bhuwaneshwari Devi, Kempogowda design, Shantadevi and Hampi Stone Chariot represented on it.
 Every figure is handcrafted, it depicts dusshera.
 It took 3 months to weave this saree and is naturally dyed.
 Around 1 lack rupees was invested to make this saree. Since a lot of hardwork had been put into the
saree, it is not put for sale.
 Apart from sarees they make dhotis, as the customers who come to shop for weddings also ask for dhotis.
 They are open to manufacture products other than sarees, provided there is a good margin of time and
advance payment.
 The weavers are paid according to the design and work on the saree.
 For bulk order, they will present a sample provided advance amount is given to them for assurance.

CLUSTER INTERACTION - Mr. Ramaiah Chowdappa

Session- 6th October 2020, 2:30-4:30 P.M.

ABOUT
- Established in the year 1983.
- Founder – Mr. Narayan Swami
- 11 Board members- 1 President, 10 Directors
- Mr. Ramaiah working since 1995
- Facebook page- https://www.facebook.com/raghavendrahandlooms5/

Q.1 Working process of yelahanka cluster?

- procurement of raw material from NHDC, local retailers. (10% rebate on raw material by NHDC).
- lead time for entire process 1 Month.
- 10% margin on sale of each Saree.
- Pure silk manufacturing, highest quality, Value for money, authentic products.
- Use of artificial dyes because of faster and cheaper dyeing process.
- organic dyes are not used because they incur high costs and longer lead times.
- defective pieces are sold at discounted rates.

Q.2 Govt Aid for the cluster.

- Medical reimbursement for weavers for Rs. 7500/month per member. (applicable for card holders
only)
- Karnataka Govt loan schemes per loom – 50k (pre covid), amount reduced to 20k per loom (post
covid) for CC Account holders.
-20% rebate on handloom products provided by Karnataka govt.
- Provision to take loan from PMEGP Loan scheme. (PM Employment Generation Programme
Scheme)

Q.3 How do you promote your product?

- Scroll Advertisements, through local T.V channels. (occasionally)
- Paid advertisement for 20K done only once in life time.(Not fruitful)
- Word of mouth
- Mostly local and regional customers.
- Discountinued due to high expenditure.

Q.4 Raw material Cost

- Silk- Rs.4300 yarn
- saree starting range 4500.
- inventory stock- 250-300 sarees

Q.5 Trend spotting and Designing of Sarees.

- President of society, board of society spreads awareness among weavers about the latest
trends.
- Weavers are made to manufacture only the required designs and colors.
- no personal input from weavers is allowed.
- Periodic changes in time as per season and demand.
- upcycling is not in action.
- Orissa pallu – high demand design now diversified to paithani , booti designs.
Q.6 Product Range available at Yelahanka cluster.
- Saree
- Dhoti/Mundu
- raw material (for shirts and blouses)

Q.7 Branding?
- No branding as of now, only sold under pure silk trademark and society name.
- society name- Sri Raghavendra Silk Handloom Weaver cooperative Society.
- location- Yelahanka New town.
- No logo as of now.
- No branding on Packaging of saree, complemented with society’s name on carry bag.
- Approval required for branding of products from board of members of society.

Session- 7th October 2020, 2:30-3:30 P.M.

Name- Mohan Sagar

Position- Society Member
Ministry of textile department
About and the role – takes care of the weavers under the yelahanka cluster
 There are 7 clusters in Karnataka
 200-300 artisans
 Schemes and Provisions provided by government
 Training for weaving, designing, colour provided to the weavers
 Schemes for Assets in this case looms

About Yelahanka
 It is a 50-60 year old tradition of weaving silk
 Nothing different as such , just weaving pure silk sarees. Very similar to Kanchivaram
sarees.
Government role
 90% subsidy is given, only 10% is borne by the weaver
 Solar light is provided
 Service centres for training weavers in field of Designing, dyeing, training with a daily
incentive of 210 rupees. Training is for 45 days. It is provided to meet the changing
demands of the market.
  Policies- Insurance schemes are subsidies rates like 80 rupees person, total amount 420
rupees is bourned by the weaver.
 There is no training for marketing or branding of the sarees. All of that is done by the
societies privately
Marketing branding
 Currently there is no brand
 Knowledge about Go-Coop and also sells saress through that
 India Handloom brand ,only for superior quality work and Yelahanka is works in accordance
to it
 Governments supports marketing by organising various exhibitions and stake holder
meetings (national and internationally) (Malaysia ,Singapore) . At least 20 meetings per
year.
 Not eligible for GI tag because Yelahanka weaving isn’t a traditional Karnataka weaving
technique
Suggestions for branding- A lot of awareness and programs on how to presentation, e-marketing
Supply chain and Product Development
 Raw materials procured by NHDC office
 10% subsidy on yarn is provided
 The winding warping process is done in the society itself, usually it takes 20-25 days for a
saree.
 Product development is based on the present market scenario.
 Designing is done by local designers and the same is shown to the weavers
 Not open to collaborate with institutes and famous designers
 Open to try new products like duppatas etc if weavers are trained well

Session- 13th October 2020, 2:30-3:30 PM

Name- Ms. Kalawati

Interaction with Ms. Kalawati of Priyadarshini Handloom Saree. Got to know how tags are attached to the
sarees. Every saree has a tag specifying weaver’s name who made it and its location. This is the benefit of
GI tag.
Branding can be done by providing the cluster with GI tag to provide the cluster recognition in the market.

PHONE CALL

MALLIKARAJUNA SOCIETY – YELAHANKA

1) History of Cluster& Time line?

It started 1 and half years, they had meeting created a group together. Base lens survey was
conducted they visited every weaver’s house and collected data about their weaving
knowledge. After joining dying training was given to 20 people certificates was distributed to
weavers and they were all funded by government

2) Designer?
They have sent a designer to the cluster who has taught them new design elements and how
saree has to be woven and all. He stayed at Mallikarjuna society and taught all the weavers
new design elements.

3) Dyeing?
Dyeing master was sent to yellahanka cluster which was funded by the government. They have
even paid the weavers also, directly the money was transferred weavers’ account. Weavers
have to come by 10m and can leave by 4pm all coaching were given to the weavers. This
training which has two batches
Yelahanka Agrahara layout
Kamakshi palaya , Bangalore – weaving coaching total 60 members.
4) To the weavers they need magma things weaving equipment. Central realse particular money
to cluster and materials like magm, jacquard, corporate. jacquard, acchu, reedu and wat ever
required for weaving was bought. In a month they dropped particular load respectively in both
training institutes. Public elected jillla panchayat head deputy officer cones and they distribute to
the weavers.

5) Products?
 Only silk sarees, in Yelahanka they produce only silk sarees in manufactured. Dharam avaram
and indupur they do lehengas and dhotis and kids wear. 16”, 30”35” are the different sixes of
lehenga.

6) In Yelahanka they only produce normal sarees they do not have enough margin and skillful
laborers are lagging in Yelahanka thus wedding sarees are not produced in this particular
society?

7) They make their own designs as such they have no superior one to do designs. To do one
design it takes 15 days max. according to design and variety of the saree design and color the
price differs. their main is that they have a reception saree, worker chargers are 2000 to 4000
for a reception saree and the saree cost is 15k to 30k and for normal saree labor wages are 600
to 800 saree prices are 3500 to 6000.

8) Struggles to take it to huge steps and the problems faced by cluster?

It all depends on the weavers who wants to learn and how much central funding. After training
some people start to set up their own loom, Whatever loom equipment distributed by Central
won’t be sufficient for the weavers to set up their own loom, so they’ll invest own money and set
up their own loom.

9) About branding?
They work in a society wise. There is no as such as branding and all. Cluster has no showroom
and SRI MALLIKARJUNA SWAMY- Cotton and Silk Handloom society

10) Profit Margin?

It all depends on worker and how much theyre working and how fast they’re producing, 2600
weaving charges 3700 warp 360 zari price – common zari, color charges, dyeing, weaver
labor cost all together cost 6 to 7k. And they when they go bazar to sell the sarees there is a
price fluctuations in the saree if they produced when the time silk price is high but when they
go if the price is less then they face loss.

11) How they do pricing whatever they buy the yarns and all that time what ever cost they’re
working they’ll type a label on that particular day of that day price of a saree.

12) Customers ?
Some are price sensitive
Some are design orientated and they pay price according to that.

13) They have only handloom mark and silk mark. No tags etc.
Suggested Brand LOGO and Packaging for YELAHANKA WEAVERS
INTERACTION WITH STAKEHOLDERS W.R.T LOGO
Mr. Mani liked the logo as well as the customised Jute bag.