SIDBI - Chakchaka Cane and Bamboo Cluster, Barpeta, Assam

Diagnostic
Study Report
Chakchaka Bamboo
Cluster, Assam
Submitted to: Small Industries
Development Bank of India
December 2021
Diagnostic Study Report of Chakchaka Cane and Bamboo Cluster, Barpeta 1

22 December 2021
Small Industries Development Bank of India (SIDBI),

Promotion & Development (P&D) Vertical,
3rd Floor, Atma Ram House,
1 Tolstoy Marg, Connaught Place
New Delhi - 110001
Dear Sir/Ma’am,
As part of our engagement for Diagnostic studies- mapping financial & non-financial gaps for selected
MSME clusters under Pocket 2 & 3, we hereby submit the Diagnostic Survey Report (DSR) of
Chakchaka Cane and Bamboo Cluster for your kind perusal. The deliverable has been prepared in
accordance with our engagement agreement with Small Industries Development Bank of India (SIDBI)
dated 23 December 2020, and our procedures were limited to those described in that agreement.
This Diagnostic Study Report is based on studies of and discussions with:
► Artisans
► Industry experts
► Secondary research
Our work has been limited in scope and time and we stress that more detailed procedures may reveal
other issues not captured here. The procedures summarized in our Diagnostic Study Report do not
constitute an audit, a review or other form of assurance in accordance with any generally accepted
auditing, review or other assurance standards, and accordingly we do not express any form of
assurance. This Diagnostic Study Report is intended solely for the information and use of Small
Industries Development Bank of India (SIDBI) and is not intended to be used by anyone other than
specified party.
We appreciate the cooperation and assistance provided to us during the preparation of this report. If
you have any questions, please contact the undersigned.
Sincerely,
Amar Shankar
Partner – Business Consulting

Disclaimer
This Diagnostic Study Report on Chakchaka Cane and Bamboo Cluster in Assam has
been prepared by Ernst & Young LLP (hereinafter referred to as ‘EY’ or ‘Ernst & Young’
or ‘Us’) and delivered to Small Industries Development Bank of India (SIDBI),
(hereinafter referred to as ‘the Client’).
The inferences and analyses made by EY in this report are based on information
collated through primary research, secondary research, discussions with the client
personnel and key stakeholders and our knowledge with respect to the cluster
development initiatives undertaken by various Central/state government schemes and
its objectives. EY has taken due care to validate the authenticity and correctness of the
information from various sources, however, no representations or warranty, expressed
or implied, is given by EY or any of its respective partners, officers, employees or
agents as to the accuracy or completeness of the information, data or opinions provided
to EY by third parties or secondary sources.
Nothing contained herein, to the contrary and in no event shall EY be liable for any loss
of profit or revenues and any direct, incidental or consequential damages incurred by
the Client or any other user of this report.
In case the report is to be made available or disclosed to any third party, this disclaimer
along with all the limiting factors must be issued to the concerned party. The fact that
EY assumes no liability whatsoever, if for the reason any party is led to incur any loss
for acting upon this report, must be brought to the notice of the concerned party.
© EY, 2021

Acknowledgement
We would like to express our sincere gratitude to Small Industries Development

Bank of India and its officials for their involvement and valuable inputs during the
preparation of this report.
We would like to extend our sincere gratitude to the DICC Barpeta for their involvement
and for providing inputs regarding Chakchaka Bamboo Cluster.
We would like to extend our sincere gratitude to the officials of Bank of India and Union
Bank, Simlaguri Branch for their valuable time and for providing inputs regarding the
Chakchaka Bamboo Cluster.
We would also like to extend our sincere gratitude to all the MSMEs, and other key
stakeholders present in the cluster for participating, cooperating and providing much
needed input which were very helpful in the preparation of this DSR. Without your
support, it would not have been possible to capture the industry insights and prepare
this report.

Abbreviations
AOBO Analysis of Business Operations
ARTFED Assam Apex Weavers & Artisans Co-operative Federation Ltd
ASI Annual Survey of Industries
ASRLM Assam State Rural Livelihood Mission
BDS Business Development Services
BDSPs Business Development Service Providers
BMO Business Membership Organisation
BRAWFED Bodoland Regional Apex Weavers & Artisans Cooperative Federation Ltd
CAGR Compound Annual Growth Rate
CDE Cluster Development Executive
CDP Cluster Development Programme
CFC Common Facility Centre
CGTMSE Credit Guarantee Fund Trust for Micro and Small Enterprises
CLCSS Credit Linked Capital Subsidy Scheme
CSR Corporate Social Responsibility
DC Handicrafts Development Commissioner for Handicrafts
DIC District Industries Centre
DICC District Industries & Commerce Centre
DPR Detailed Project Report
DSR Diagnostic Study Report
GDDP Gross District Domestic Product
GDP Gross Domestic Product
GSDP Gross State Domestic Product
GSVA Gross State Value Added
GVA Gross Value Added
HRD Human Resource Development

IID Integrated Infrastructure Development Centre
IIE Indian Institute of Entrepreneurship
KVIC Khadi and Village Industries Commission
MFIs Microfinance Institutions
MSME Micro, Small, Medium Enterprises
MSME-DI MSME Development Institute
MUDRA Micro Units Development and Refinance Agency
NIC National Informatics Centre
NID National Institute of Design
NSDP National State Domestic Product
PMMY Pradhan Mantri MUDRA Yojana
RGVN RashtriyaGramin Vikas Nidhi
SBI State Bank of India
SFURTI Scheme of Fund for Regeneration of Traditional Industries
SIDBI Small Industries Development Bank of India
SMEs Small & Medium Enterprises
SPV Special Purpose Vehicle
SWOT Strength, Weakness, Opportunities, Threats
UAM Udyog Aadhar Memorandum
USA United States of America
USD United States Dollars

Revision history
Amendment
Version Issue date Prepared by Reviewed by
description
Soumen Das
Samrendra Singh
Prasenjit
Sachin Akhria
30 September
1.0 - Chakraborty
2021
Ilina Talwar
Nasib Ali
Naini Dahra
22 December Incorporation of Ilina Talwar

2.0 Samrendra Singh
2021 feedback from SIDBI Naini Dahra

Table of contents
Executive summary ...............................................................................................................................14

Introduction ....................................................................................................................................27
1.1 About the project ...................................................................................................................27
1.2 Introduction of the cluster ......................................................................................................28
1.3 Methodology of the study ......................................................................................................29
Economic context ..............................................................................................................................34
2.1 State overview .......................................................................................................................34
2.2 District overview ....................................................................................................................35
Sector scenario ...................................................................................................................................38
3.1 Global scenario ......................................................................................................................38
3.2 India scenario ........................................................................................................................38
3.3 State Relevance ....................................................................................................................40
Profile of cluster ecosystem ............................................................................................................43
4.1 History and evolution of the cluster .......................................................................................43
4.2 Regional overview .................................................................................................................45
4.3 Nature of the Cluster .............................................................................................................45
4.4 Vital Statistics of the Cluster ..................................................................................................47
4.5 Products of the cluster ...........................................................................................................48
Clusters Diagnostics ..............................................................................................................................54
5.1 Cluster stakeholder ................................................................................................................54
5.2 Raw material availability in the cluster ..................................................................................59
5.3 Production process ................................................................................................................61
5.4 Machinery/technology used ...................................................................................................65
5.5 Product quality, testing and certification ................................................................................67
5.6 Access to finance ..................................................................................................................67
5.7 Cluster marketing & branding ................................................................................................68
5.8 Cluster employment and skill assessment ............................................................................69
5.9 Value chain and job roles mapping .......................................................................................71
5.10 Environment and Occupational Health& Safety (OHS) .........................................................71
5.11 Infrastructure..........................................................................................................................72
5.12 Status of previous interventions ............................................................................................73
5.13 Present cluster map ...............................................................................................................75
Need assessment and gap analysis ......................................................................................................77
6.1 Need assessment ..................................................................................................................77
6.2 Gap assessment ....................................................................................................................99
6.3 Leading practice study .........................................................................................................101

Strategic interventions .........................................................................................................................104
7.1 Non-financial interventions ..................................................................................................104
7.2 Financial interventions .........................................................................................................118
Economic and Social impact ...............................................................................................................123
8.1 Cluster map after intervention .............................................................................................123
8.2 Expected impact after intervention ......................................................................................125
Way forward ........................................................................................................................................131
9.1 Action plan ...........................................................................................................................131
Annexures............................................................................................................................................137
10.1 List of stakeholders interacted with .....................................................................................137
10.2 Sample Questionnaire .........................................................................................................138

List of figures
Figure 1: Cluster Map ............................................................................................................................ 14

Figure 2: Key Stakeholders of the Cluster ............................................................................................. 15
Figure 3: Value chain analysis .............................................................................................................. 16
Figure 4: Contribution of the sectors to the GSDP of Assam ................................................................ 34
Figure 5: Barpeta district ....................................................................................................................... 35
Figure 6: Industry- wise break up of Barpeta District ............................................................................ 35
Figure 7: Bamboo and Cane Trade ....................................................................................................... 38
Figure 8: Top five bamboo bearing states ............................................................................................. 39
Figure 9: Bamboo statistics Assam ....................................................................................................... 40
Figure 10: Cluster history and evolution ................................................................................................ 43
Figure 11: Location of the cluster .......................................................................................................... 45
Figure 12: Nature of the cluster ............................................................................................................. 46
Figure 13: Bamboo mats ....................................................................................................................... 49
Figure 14: VIP Furniture ........................................................................................................................ 49
Figure 15: VIP Sofa Furniture Set and lamp stand ............................................................................... 49
Figure 16: Bamboo Dining Table and bed arm rest .............................................................................. 49
Figure 17: Tripod furniture set, and Center Table set ........................................................................... 50
Figure 18: Standing Flower Vase and Mounted Flower Vase ............................................................... 50
Figure 19: Bamboo chairs and tray set ................................................................................................. 51
Figure 20: Key Cluster Actors................................................................................................................ 54
Figure 21: Product Packaging in Cartons .............................................................................................. 56
Figure 22: Packaged Product ready for dispatch .................................................................................. 56
Figure 23: Bamboo poles in the cluster ................................................................................................. 60
Figure 24: Bamboo slivers used for weaving ........................................................................................ 61
Figure 25: Production Process .............................................................................................................. 62
Figure 26: Pre-Processed Bamboo ....................................................................................................... 62
Figure 27: Bamboo Treatment Tank ..................................................................................................... 62
Figure 28: Product Designing ................................................................................................................ 63
Figure 29: jointing Technique of Bamboo Poles ................................................................................... 63
Figure 30:Use of Cane Slivers in Joints ................................................................................................ 64
Figure 31: Bamboo and Cane Slivers used for Weaving ...................................................................... 64
Figure 32: Weaving Pattern ................................................................................................................... 64
Figure 33: Finished Product with Jointing and Weaving ....................................................................... 65
Figure 34: Varnishing of Finished Goods .............................................................................................. 65
Figure 35: Circular saw and sanding machine ...................................................................................... 65

Figure 36: Drilling machine .................................................................................................................... 66
Figure 37: Basic Hand Tools ................................................................................................................. 66
Figure 38: Credit Facility Availed ........................................................................................................... 67
Figure 39: Source of credit demand ...................................................................................................... 67
Figure 40: Current Market of the Cluster Products ............................................................................... 69
Figure 41: Skill Level Assessment of Cluster ........................................................................................ 70
Figure 42: Infrastructure of micro units .................................................................................................. 72
Figure 43: Infrastructure of household units .......................................................................................... 72
Figure 44: CFC present in the cluster ................................................................................................... 73
Figure 45: Present cluster map ............................................................................................................. 75
Figure 46: Infrastructure within the cluster units.................................................................................... 86
Figure 47: Infrastructure for Household Artisans .................................................................................. 87
Figure 48: CFC Infrastructure in the Cluster ......................................................................................... 87
Figure 49: Financial Value Chain Analysis ............................................................................................ 89
Figure 50: Current Source of Finance for Cluster Artisans ................................................................... 90
Figure 51: Reasons for Procuring Informal Source of Finance ............................................................. 91
Figure 52: Sources of Credit Demand ................................................................................................... 93
Figure 53: Proposed Facilities in the CFC ........................................................................................... 105
Figure 54: Vacuum Pressurized Tank ................................................................................................. 106
Figure 55: Vacuum drying tank ........................................................................................................... 107
Figure 56: Bamboo splitting machine .................................................................................................. 108
Figure 57: Bamboo Slicing Machine .................................................................................................... 108
Figure 58:Bamboo Polishing Machine ................................................................................................. 108
Figure 59: Bamboo sizing machine ..................................................................................................... 108
Figure 60: Cluster map after intervention ............................................................................................ 124

List of tables
Table 1: Summary of challenges and interventions .............................................................................. 18

Table 2: Cluster pockets identified by SIDBI ......................................................................................... 27
Table 3: Credit demand analysis methodology ..................................................................................... 30
Table 4: Credit Supply Analysis Methodology ....................................................................................... 31
Table 5: Banks in Barpeta District ......................................................................................................... 36
Table 6: Bamboo products exported by India in 2018 ........................................................................... 39
Table 7: Bamboo products imported by India in 2018 ........................................................................... 39
Table 8: Connectivity of the cluster ....................................................................................................... 45
Table 9: Vital Statistics of the Cluster .................................................................................................... 47
Table 10: Occupational Breakup of the Cluster Households ................................................................ 47
Table 11: cluster Household engaged in Bamboo Crafts ...................................................................... 48
Table 12: Products of the cluster ........................................................................................................... 51
Table 13: Source of Raw Material and Accessories ............................................................................. 59
Table 14: Cluster Job Role Mapping ..................................................................................................... 71
Table 15: Value Chain Analysis of VIP SOFA Set ................................................................................ 77
Table 16: Value Chain Analysis of Lamp Shade ................................................................................... 78
Table 17: Value Chain Analysis of Bamboo Bottle ................................................................................ 79
Table 18: WDWP Matrix ........................................................................................................................ 80
Table 19: Cooperation Matrix ................................................................................................................ 82
Table 20: AOBO of the Cluster .............................................................................................................. 83
Table 21: Working Capital Estimates .................................................................................................... 91
Table 22: Working Capital Requirement ............................................................................................... 92
Table 23: Credit Demand in the Cluster ................................................................................................ 93
Table 24: Credit Supply available in the cluster .................................................................................... 95
Table 25: SWOT Analysis ..................................................................................................................... 96
Table 26: Key non- financial gaps of the cluster ................................................................................... 99
Table 27: Financial Gaps in the Cluster .............................................................................................. 100
Table 28: Proposed Machinery for the Cluster .................................................................................... 107
Table 29: Proposed Training for Big Units .......................................................................................... 109
Table 30: Proposed Training for Household Units/ Artisans ............................................................... 110
Table 31: Financial Inclusion and MSME Schemes ............................................................................ 119
Table 32: Qualitative Impact Post Intervention.................................................................................... 125

Executive
summary
Executive summary
Assam has 60% of India’s growing stock of bamboo. Bamboo and cane are used to make various
products such as furniture, houses, incense sticks, baskets, mats, ladders, household articles and
other applications. Cane and bamboo craft are an integral part of the rural economy and a vital source
of livelihood for a large population. The cane and bamboo cluster in Chakchaka is spread across four
adjacent villages, namely Raipur, Bhaluki, Dhugpuri and Joshihatigaon which are located in
Chakchaka block, Barpeta District of Assam. A majority of the cluster activity takes place in Raipur
and Bhaluki village.
The cluster is primarily a bamboo cluster and the use of cane is minimal and mostly used for weaving.
There are 250 households and 10 micro units engaged in cluster activities. The households are
involved in the production of bamboo utility products such as bamboo trays, wall decorative, flower
vase, pen stands etc. The 10 micro units in the cluster are engaged in the production of bamboo utility
items along with certain premium products such as bamboo bottles, lamp shades, wall lamps, VIP
furniture, center table set etc. These 10 units employ the artisans of the cluster, either full-time or part-
time and undertake marketing and selling of the products produced by the household units in the
cluster. The household units have an average turnover of INR 2.5 lakhs to 4 lakhs while micro units
have an average turnover of INR 12 lakhs to INR 15 lakhs a year.
Figure 1: Cluster Map
There are several stakeholders that provide support to the cluster units. The principal stakeholders in
the cluster are the micro units of the cluster along with the household artisans. The other stakeholders
include raw material suppliers, transporters, support institution like local NGO, technical institution like
IIE, financial institutions like Assam Gramin Vikas Bank, State Bank of India and Bank of India,
government institutions such as District Industries and Commerce Centre, Khadi and Village Industries
Commission, DC Handicrafts along with the CDE appointed during the SFURTI intervention in the
cluster. The figure below mentions the key cluster stakeholders.

Govt. Bodies
DC handicrafts, DICC,
KVIC, MSME-DI,
ASRLM
Banks/FIs
Assam Gramin Household units and
Bikash Bank, BoI, micro units
SBI
Key
actors
BDS Providers
Technical Education Raw material suppliers,
Institute traders, transporters,
IIE Anchalik Gram Unnayan
Parishad
Figure 2: Key Stakeholders of the Cluster
Based on the discussions, the production process of the cluster was mapped highlighting the key
activities undertaken.
The first step in production process is cleaning the raw bamboo poles. This is followed by peeling the
external epidermis of the bamboo skin using knives and long dao. After peeling, sanding machine is
used to even tone the poles. The bamboo poles are then cut into various sizes according to the
product. These smaller pieces are sun dried for about three days and then the poles are immersed in
a concrete treatment tank with hot water and boric powder. It is done to increase the longevity. After
treating the bamboo, it is cut and sliced based on the design requirement of the products to be
produced. During this stage, the artisans mostly rely on handheld tools like hex saw, long dao and
knives for chiselling off the poles. The poles are then joined together either in the vertical horizontal
orientation or in cross sectional mode using bamboo or cane slivers to make a rigid structure. After
this, bamboo is weaved to give an aesthetic look to the product. The cane or bamboo slivers are
arranged in a flat oval structure, where one side is flat and the other is round. These strips are
attached on the canvas of the product with nails and then woven to form an interlaced network at right
angles in a horizontal and vertical pattern. After finishing weaving, sandpaper or sanding machine is
used for sanding the surface to remove irregularities or sharp projections of bamboo pieces. The
insecticide and varnish are applied before selling the product.
The final products are sold through aggregators who are the major players in the cluster who also
have units and produce in bulk. These aggregators collect the products from the small artisans and
market them, fair and expos, retail and bulk buyers and directly to the customers in local market.

Supplier Manufacturing Process Sales & Marketing
Production
Raw Material Suppliers Aggregators
Raw material (bamboo poles)

Transp Retailers and bulk
Machinery Suppliers ortation
purchasers
Seasoning and treatment of of
bamboo poles finishe
d
Transporters product Fairs and expos
Cutting, slicing and designing
Jointing and weaving
Chemical treatment and

product finishing
Finished products
Activities within the cluster Activities outside the cluster
Figure 3: Value chain analysis
Based on the present scenario and need assessment, key gaps in the cluster were to identified
► Lack of storage facilities for raw materials in the cluster causing bamboo poles to become
infested with fungus or termites over time
► Lack of availability of proper treatment tank for artisans
► Use of outdated machinery and lack of usage of advanced machines and tools by the artisans
which affects the quality and productivity
► As the products are made using conventional tools, there is a lack of standardisation.
► Lack of use of CFC in the cluster due to lack of funds, transportation inconvenience, access to
finance
► Lack of awareness of latest market designs and customer preferences.
► Lack of knowledge of marketing strategies
► Lack of proper waste disposal and a result, the waste is burnt, causing air pollution.
► Lack of awareness on government schemes and policies and limited role of bank/FIs in
reaching out to the cluster units.
Based on the challenges identified, key interventions have been proposed for cluster development:
► Establishment of a raw material bank

► Establishment/ expansion of CFC with raw material bank, marketing centre, training centre,
storage facility, design centre etc. in the CFC
► Establishment of bamboo treatment tank

► Installation of modern machines/ technology including installation of vacuum pressurized
treatment tank and vacuum drying tank
► Training of artisans and skill development of the artisans through collaboration with technical
institutions, experts and other support institutions
► Linkages with technical institutions for development of new products
► Creation of marketing linkages and brand promotion of cluster products

Table 1: Summary of challenges and interventions
Implementation time
Area Concerns Key Interventions Benefits
horizon
Non-Financial Challenges and Interventions
Raw Material ► Currently, cluster units are ► Policy / Field Level

procuring raw materials from ► Establishment of a raw
the local market with no ► Long term ► Faster access and
material bank within the
credit purchase facility. dispatch of raw material
CFC to provide easy access
to the cluster artisans.
► For procuring premium to use the material bank at
► Fair prices to be charged
quality bamboo poles, units fair prices.
for the use of raw
travel to areas nearby ► The raw material bank to be ► Long Term
material
Bhutan Border thereby operated and maintained by ► Availability of credit
increasing procurement cost the government agencies purchase of raw material.
► Lack of proper treatment like DICC, CBTC or on PPP ► Raw material bank to be
and storage of raw material basis operated and maintained
within the cluster, leading to by the government
fungal and termite attack agencies or on PPP to
causing wastage ensure time to time
► Due to lack of proper inventory and quality
bamboo treatment facilities, check of the raw material
the production time procured.
increases substantially.
Furthermore, they are
unable to increase sales due
to poor quality of bamboo as
it gets infected

Implementation time
horizon
Designated workspace Policy/Field Level: ► Provision of designated

Infrastructure
workspace will increase
► At present, artisans do not ► Long Term
productivity
have a designated ► CFC with facilities such as ► Better socio-economic
workspace display centre, marketing life.
► Lack of work shed and centre, raw material bank, ► Improved business
► Medium Term
advanced tools and storage room, for finished ► Access to latest
equipment products, design centre, technology
► Artisans work in the streets SPOC, training centre. ► Ease access to raw
adjacent to their household ► Formation of dedicated SPV material.
premises. and support of external ► Market linkages through
► CFC is available but is agency to manage CFC CFC
inoperative due to logistical ► Designated place for
inconvenience. storage of raw material
and finished product
► Most machineries in the
reducing inconvenience
CFC need repair and
of artisans
maintenance
► Retail unit
Technological ► Outdated tools are used by Field Level: ► Medium Term ► Rejection rate will be
Intervention artisans which affects the ► Up-gradation of existing reduced
productivity of artisans hand tools with modern ► Increased productivity
► Lack of standardization due equipment/ technology ► Production capacity
to use of traditional increased
► Organize workshops/
handheld tools thereby
capacity building ► Enhanced product quality
leading to product rejection
programmes on latest ► Improve the
by the customers
technology in handicrafts. competitiveness of the
► Treatment process of
► Provision of artisan tool kits cluster.
bamboo poles causes delay
in the production process. ► Knowledge on the current
► Training on seasoning of
trends in the technical
bamboo and installation of
knowhow of the industry.
vacuum pressurized

Implementation time
horizon

treatment tank and Vacuum ► Awareness on use of new
Drying tank machinery to operate in
the CFC and linkages with
► Training on use of new
machinery suppliers
machinery and tools
► Complete utilization of
bamboo pole to produce a
diversified pool of
Policy Level: ► Medium Term products ranging from
► Procurement and furniture to disposable
installation of advanced plates and bio fertilizer
machineries under the ingredients such as
Assam Bamboo and Cane bamboo saw dust.
Policy,2019 ► Better quality products
► Avail subsidy under policy in and enhanced market
capital investment made in reach
procuring modern
machineries and also
upgrading the exisiting tools
and equipment
Skilling of ► Artisans are unaware of Field level: ► Short-medium term ► Enhancement of technical
workforce latest techniques. ► Training of artisans/units: and interpersonal skills
Providing trainings on
► Artisans are skilled in ► Improved productivity and
marketing skills, new
designing a few products quality of output by
product development, latest
only deploying latest
designs, latest machinery,
techniques
► Degree of customization is entrepreneurship, e-
limited. commerce, tools and ► Development of new
► Short-medium term
techniques product with designs in
► Weak marketing skills
demand

Implementation time
horizon

► Integrated training of the
► Bottlenecks in the supply
entire cluster actors to
chain
understand the entire ► Increase in digital literacy
bamboo value chain. and marketing
► Collaboration with technical ► Retention of Labour
institutes and local bodies to
provide trainings ► Entrepreneurship
► Long Term
► Engaging youth of the
Development among the
cluster by providing youths.
vocational courses and ► High Stakeholder
training on bamboo Engagement
treatment , processing and
► Building Capacity for the
crafting
entire value chain.
► Exposure visits to
successful clusters
Product ► Lack of awareness on value- Policy level: ► Medium term ► Development in skills for
Diversification added products manufacturing of value-
► Regular awareness added products
► Catering to niche market
programs on creation of
► No exposure to latest ► Product diversification will
value-added products, new
market trends lead to new market
product development
creation both domestic
► Producing limited variety of ► Setting up of Design center and international
products. in collaboration with NID or
► New product development
IIT Guwahati.

Implementation time
horizon

► Household utility items like Institutional level:
trays and baskets, pen
► Joint research projects with
stands are primarily
IIT Guwahati on new
produced by the majority of
product development
the artisans.
Marketing ► No export linkage Institutional level: ► Short term to medium ► Cluster turnover increased
► Non-availability of marketing term ► Presence on e-commerce
Field level:
expert websites
► Lack of knowledge of export ► Development of dedicated
► Awareness program on
procedures website for cluster
marketing schemes, e-
► Lack of knowledge of commerce, online portal. ► Market expansion
government schemes Tie-ups with e-commerce ► Export promotion
providing support for platforms like Flipkart, ► Creation of marketing
exposure visits Amazon etc. linkages
► Lack of tie ups with e- ► Awareness on sales through
commerce partners GeM and support listing
products on dedicated
Bamboo page, “Green Gold
Collection”
► Linkages with CBTC outlets
and other local brands.
► Setting up of dedicated
online platform for products
of the region

Implementation time
horizon

► Appointment of a branding
and marketing consultant
► Participation fairs/
exhibitions
► Development of a brand
catalogue and dedicated
website for cluster
► Linkages with tourism sector
including product placement
at kiosks in airports and
souvenir shops
► Awareness on export
schemes and aassistance
for exports through
helpdesk in CFC
► Awareness on usage of
Craftmark
► Marketing tie ups with
ARTFED, BRAWFED,
government emporiums etc.
Artisan ► No basic benefits are Field level: ► Short term ► Increase standard of living
welfare/ provided to the artisans like for artisans
► Awareness and
benefits medical services, insurance
sensitization of health and ► Advanced tools kits for
etc.
social security benefits like ease of production.
► Tendency of the youth of the insurance, ESI, social
► Enrolment under different
cluster to move out in security, group insurance
► Long term MSME Schemes.
search of better career etc.
prospects ► SPOC to avail the artisans
► SPOC will serve as a Help
with KYC documents.
► No advanced hand tool kits. Desk sensitize the artisans
on welfare benefits, market

Implementation time
horizon

linkages, financial
assistance
Environmental Air pollution (due to burning of Institutional level: ► Reduce the pollution
Concerns waste raw material) within the cluster due to
Field level: ► Short Term burning of bamboo poles
► Long Term ► Establishing the conscious
► Waste disposal system in of an environment friendly
Common Facility Centre in cluster.
the cluster ► Using any material waste
► Treatment of the wastage to as a fertilizer n cultivation.
be used as fertilizers in crop ► Properly shredded wasted
cultivations and floor saw dust mixed with
lamination adhesives and
compounds can be used
as floor laminates.
Financial challenges and Interventions

Implementation time
horizon
► Units have attempted to Field level ► Medium term ► Increased applicants for
avail loans but have been Institutional level Central/state Schemes
rejected due to lack of
► Loans from banks for term
proper documentation,
► Awareness of central state, loan and working capital
project report etc.
FI/ banks schemes increased
► Banks are not willing to
► Handholding support for ► Loans and advances from
provide them loan without
loan application banks improved and
collaterals ► Medium term increased for cluster units
► Most of the units do not ► Linkages with FIs/ banks/
apply for the bank loan as MFIs
the documentation process ► Awareness and
is very slow. handholding support for
► Most of the units are GST filing and registration
unaware of various schemes through SPOC in CFC
and subsidies ► Long term
► Activating the district help
► Most of the artisans have centres of initiatives like
MSME Artisan Cards but are ‘standup mitra’ of SIDBI for
not aware of the benefits handholding artisans for
bank loan, etc.
► Rate of credit default is high
in the cluster ►

01
Introduction
Introduction
1.1 About the project

Small Industries Development Bank of India (SIDBI) established under the Small Industries
Development Bank of India Act, 1989, acts as the principal Financial Institution for promotion, financing
and development of the MSME sector and is also responsible for co-ordination of the functions of the
institutions engaged in similar activities in the country. SIDBI has reoriented its focus on MSMEs by
adopting SIDBI Vision 2.0. As part of this, the financial institute has taken an initiative towards
strengthening the MSME clusters at select locations in specific sectors. The strategic initiative is
dedicated to meet both, credit and non-credit needs of MSMEs.
Considering this, SIDBI has taken an initiative to undertake diagnostic studies for select 30 MSME
clusters across the country, with the objective to identify detailed non-credit and credit related issues in
the given cluster, in-depth analysis of needs and gaps and possible interventions. Clusters will be across
13 states, categorised under 5 pockets as mentioned in the table below.
Table 2: Cluster pockets identified by SIDBI
Pocket # States/UTs Covered
Pocket 1 Jammu & Kashmir, Ladakh & Uttarakhand
Pocket 2 Delhi, Haryana & Rajasthan
Pocket 3 Uttar Pradesh & Assam
Pocket 4 Gujarat, Maharashtra and Karnataka
Pocket 5 Andhra Pradesh and Tamil Nadu
SIDBI has engaged EY to help SIDBI carry out the diagnostic studies mapping for Pocket 2 and Pocket
3 clusters. The EY team has prepared this DSR for the Chakchaka Cane & Bamboo Cluster, Barpeta,
under Pocket 3, covering financial and non-financial need assessment, gap analysis, strategic
recommendations including cluster vision and action plan as per the scope of the study.
MSME sector and cluster development
The MSME sector in India is the engine of economic growth as it contributes 30% to GDP, 48% to
exports and employs around 110 million people. There are estimated 63.38 million MSMEs in the
country and 2.5 million units have been registered under UAM as on March 2021 1. A large proportion of
MSMEs are concentrated in the form of clusters – which is an agglomeration of enterprises producing
similar product, facing common opportunities and threats.
The cluster-based approach for strengthening the MSME ecosystem has been well proven for economic
development across the world. It helps in realising the collective benefits by addressing common
challenges and capitalising on opportunities together. As a whole, clustering results in cost savings,
better efficiency/productivity and enhanced sales through activities such as joint procurement, sharing
of market information, technology, best practices etc. owing to distribution of common costs. The
development of clusters in India was first highlighted by the Abid Hussain Committee on Small Scale
Industry set up by the then Ministry of Small-Scale Industry in its report in 1997. Over the years, the
1
https://www.financialexpress.com/industry/sme/msme-tech-msme-registration-crosses-25-lakh-mark-on-modi-govts-udyam-
portal-grows-130-in-nearly-five-months/2222324/

cluster development approach has been widely adopted by several state and central governments for
fostering the MSME ecosystem in the country. Today, India has more than 10,000 clusters
However, MSMEs in clusters, still lack an effective collaborative ecosystem which in-turn impacts their
growth and productivity. They face several challenges with respect to financial and non-financial needs
despite the presence of various stakeholders like support firms, support institutions, technical
institutions, financial institutions etc offering service to principal firms. Some of the major challenges
include lack of access to credit, technology, skilled manpower, infrastructure, markets and other
resources which impact their productivity and overall competitiveness. Further, as per the 2018 IFC
Report, there is an overall INR 20 – 25 trillion estimated credit supply gaps for the MSME sector from
the formal financing sources.
The main problem faced by MSMEs is their isolation despite being located in close proximity to each
other and producing similar products. They perceive each other as competitor and as a threat and
therefore, always scared of collaborating among each other/themselves. As a result, they face several
financial and non-financial challenges in the form of high raw material and labour cost, usage of obsolete
technology, availability of finance, weak ecosystem etc despite presence of different stakeholders within
the cluster. Further, as per the 2018 IFC Report, there is an overall INR 20 – 25 trillion estimated credit
supply gaps for the MSME sector from the formal financing sources. Thus, a balanced approach
supporting both credit and non-credit needs is required to strengthen the ecosystem.
With the emergence of COVID-19 pandemic, the MSMEs have been further chocked as they reel under
immense financial duress. MSMEs have faced an acute cashflow constraint due to lockdown and
closure of businesses for several months during 2020. Payments to MSMEs from Original Equipment
Manufacturers (OEMs)/Public Sector Undertakings/other large enterprises was halted, which created a
liquidity crunch for MSMEs. This effected the overall business operations of the MSMEs right from
paying wages to sales/exports. Unlike large firms, MSMEs do not have surplus or reserves to handle
shocks. With the collapsing demand, and little reserves, MSMEs have been struggling to bounce back
from the slowdown.
Therefore, a project was designed by SIDBI for conducting diagnostic studies to understand the financial
and non-financial issues and challenges faced by the cluster and preparing a suggestive action plan in
consultation with the cluster stakeholders to bridge the gap.
1.2 Introduction of the cluster

Chakchaka bamboo cluster is an industrial cluster developed naturally in the Barpeta district of Assam.
The artisans of the cluster have been engaged in the production of bamboo products since the 1960-
70s.The cluster is spread across four villages, Bhaluki, Raipur, Dhupguri, and Joshihati, that fall under
Chakchaka block. However, the major bamboo crafting activity is done in Raipur and Bhaluki village.
The households primarily take up the primary production activities in the cluster, with men and women
sharing equal responsibilities. Over 70% of the households are engaged in cluster activities, and there
are ten micro MSMEs in the cluster located in the Raipur and Bhaluki village. Out of the ten micro-units,
five units are registered under DIC Barpeta. The key products of the cluster include bamboo craft items
like bamboo mats, decorative items, furniture, etc.
The majority population of the cluster is Muslims who originally carried out bamboo crafts in the cluster
for livelihood. The cluster functions both in the formal and informal structure. The formal structure of the
cluster has two significant components viz-household units and private firms. The first component of the
formal sector includes the household artisans who have registered individually with the Office of DC
Handicrafts and have an identity card issued by the office. The second component of the formal sector
includes private firms owned by individuals and are registered under DIC Entrepreneur Memorandum-
II.
The informal structure comprises of the household artisans who have no such artisan registration under
DC Handicraft of the region.

1.3 Methodology of the study
For preparation of the DSR, a three staged approach has been adopted, aligned to the scope of work
of the engagement. The three stages have been detailed below.
Stage 1: Preliminary Study Off-field work
► Resource planning: Resource planning for collecting information and preparing the diagnostic
study
► Stakeholder identification: Study the stakeholder universe right from leading MSME players,
BMO or industry association, state government departments, government support institutes,
technical or research institutes, BDS providers, banks, financial institutes etc.
► Secondary research: Understand the economic and social context of product at the global,
national, state and district level; benchmark clusters, review previous studies/ literature
► Questionnaire: Prepare questionnaire for collecting primary information on financial and non-
financial challenges
Stage 2: Data Collection: On-field
► Cluster mapping: Prepare the cluster map and visiting the locations to map the number of
MSMEs in the cluster.
► Stakeholder mapping: Map the relevant cluster stakeholders like Business Membership
Organizations (BMOs), raw material providers, transporters, water suppliers, Business
Development Service Providers (BDSPs), financial and technical institutions, support firms etc.
► Stakeholder consultation: Conduct meetings with cluster stakeholders and fill the
questionnaire
► Focused group discussions: Conduct focused group discussions like participatory
assessment of competitive advantage.
Stage 3: Diagnose/ Recommendations: On/Off- Field

► Analyse: Analyse the information provided by MSMEs and stakeholders using tools like
Analysis of Business Operations (AOBO), who does who pays matrix, co-operation matrix,
cluster map before and after intervention, SWOT analysis, value chain analysis and action plan.
► Recommendations: Propose financial and non-financial interventions
► Validation: Conduct validation workshops to consult with various stakeholders to gather
feedback/ additional suggestions before finalisation of the report
1.3.1 Credit gap assessment methodology

For assessing the credit gap in the cluster, a questionnaire was prepared covering the financial and
non-financial needs of the cluster. Various units were surveyed to gain an in-depth understanding of
financial challenges faced by the units. The sample questionnaire is provided in the Annexure 10.2.
The methodology adopted for estimating credit demand and credit supply for preparation of the DSR is
detailed below:
Credit demand estimation methodology:
The demand for credit comprises of both working capital requirements as well as long-term investment
requirements. Working capital credit demand for the MSME clusters under the current study has been
estimated by applying the Nayak Committee method to the cluster turnover estimated on the basis of
the cluster survey. Term Credit requirements have been estimated by applying fixed asset growth
forecasts to current ‘Investments in Plant and Machinery’, which in turn has been estimated based on
the cluster survey using D&B method.

► Nayak Committee: The Reserve Bank of India constituted a Committee under the
Chairmanship of Shri P.R. Nayak, Deputy Governor during 1991 to examine the difficulties
confronting the MSMEs in the country in securing finance. The main agenda of the committee
was to examine the adequacy of institutional credit for the MSE sector. According to the
Nayak Committee's working capital method, the working capital requirement of the MSME unit
is calculated at 25% of annual projected turnover as per the ‘forecasted sales approach’. The
25% of the forecasted sales for the enterprise could be considered as the requirement for
working capital. Out of the working capital requirement, 5% requirement will be met by the
borrower from his own sources and the balance 20% will be financed by the lending bank.
► D&B Survey: D&B India conducted primary and secondary research that included the study of
reports prepared by various committees (constituted by RBI), Diagnostic Study Reports
prepared by various cluster implementation agencies, the Arjun Sengupta Committee report
on unorganized sector and various other sources. The questions in the questionnaire included
queries on financial information (such as assets, turnover, profit etc.), nature of credit
requirement, and perception/experience with the banking system. D&B approach is based on
growth in fixed capital.
Table 3: Credit demand analysis methodology
Item Value/Units Remark/Assumption
1 Total Number of Units Surveyed # Field survey
Micro
Small
Medium
Estimated Turnover of the Surveyed Units

2 INR Cr Field survey
for FY2020
3 Total Number of Units in the Cluster # Field survey
Micro
Nayak Committee Approach -Working Capital
Small
Medium
Extrapolated using total

4 Estimated Cluster Turnover for FY2020 INR Cr
units in the cluster
Expected growth rate is
Average growth in Index of Industrial
5 % estimated from National IIP
Production (IIP) for the Industry
growth rates
Average growth in turnover of Surveyed
6 %
Units for the last 2 years
Estimated Cluster Turnover for FY2021
7 INR Cr
(based on 5 & 6)
Working Capital Demand Estimation for the
8 INR Cr 20% of cluster turnover
cluster

Estimated Investment in Plant & Machinery
9 INR Cr
of Surveyed Units - FY2020
10
of Surveyed Units - FY2019
D&B India Approach – Term Capital

11 of Cluster (based on total units in cluster)- INR Cr
FY2020
Growth rate in Fixed Capital of the Industry Based on Annual Survey of
12 %
State-Wise Industries
Forecast of Investment in P&M -FY2021
13 (based on 12 & growth rate of fixed INR Cr
Investment)
Term Credit Requirement (difference of
14 INR Cr
P&M in FY2021 FY2020)
Term Credit Funding Requirement (80% of
15 INR Cr
Term credit requirement)
Total Credit Demand (WC Demand + Term
16 INR Cr
Credit Demand: 8 + 15)
Credit supply estimation methodology:

For the estimation of credit supply, the estimated outstanding working capital and outstanding term
credit of the surveyed units for FY 2020 is calculated based on the response received from the
questionnaire. The outstanding working capital and outstanding term credit of the surveyed units is
used to extrapolate estimates of the credit demand of the cluster in FY 2020. State Total Advances
Growth Rate based on RBI Quarterly Basic Statistical Returns is further used to estimate the credit
supply at the industry cluster.
Table 4: Credit Supply Analysis Methodology
S.No Item Units Remark/Assumption
1 Total Number of Units Surveyed #
Micro
Small
Medium
Estimated outstanding Working Capital of the INR From the

2
Surveyed Units for FY2020 Cr questionnaire
Estimated Outstanding Term Credit of the Surveyed INR From the
3
Units for FY2020 Cr questionnaire
4 Total Number of Units in the Cluster #
Micro
Small

Medium
INR
5 Estimated outstanding WC of the Cluster-FY2020
Cr
Estimated outstanding Term Credit of the Cluster- INR
6
FY2020 Cr
Estimated total credit outstanding of the cluster- INR
7
FY2020 Cr
State Total Advances Growth Rate (based on RBI RBI -Basic Statistical
8 %
BSR^^) Returns of SCB
Estimated Credit Supply at the Industry Cluster INR
9
(based on 7 and 8, FY2021) Cr
Credit gap estimation:

Credit gap has been estimated by calculating the difference between working capital demand and
working capital supply and term loan demand and term loan supply.

02
Economic
context
Economic context
2.1 State overview
Assam is situated in the heart of the north-eastern region of India, sharing its boundary with Bhutan
and Arunachal Pradesh in the north, Nagaland and Manipur in the east, West Bengal in the west, and
Meghalaya, Tripura, Mizoram and Bangladesh in the south. The state’s geographic location gives a
strategic advantage, and it is well connected to the rest of India. It has a geographical area of 78,438
sq. km and is the second largest state in the north east after Arunachal Pradesh. The state has two
distinct natural regions: the Brahmaputra Valley and the Barak Valley (also known as Surma valley).
The Brahmaputra Valley comprises a total area of 71,516 sq. km and the Barak Valley is spread over
6,922 sq. km2.
Assam has the largest economy in the North East in terms of GDP. The Gross State Domestic
Product (GSDP) of Assam for 2019-20 was INR 335 thousand crores which grew at a CAGR of 12%
from 2011-12. The primary sector contributes about 17% to of Gross Value Added, while the
secondary and tertiary sector contribute 39% and 44% respectively 3.
400
350
300
Primary
INR 000 crore
250 17%
200
Tertiary
150 44%
100
50 Secondary
0 39%
Figure 4: Contribution of the sectors to the GSDP of Assam
MSMEs
MSMEs occupy a vital role in industrial development in Assam’s economy. There are 12.14 lakh
MSMEs in the state out of which over 99% are micro and less than 1% are small and provide
employment to 18.15 lakh persons4. In 2018-19 alone, 1,123 units registered as MSMEs with a total
investment in plant and machinery of INR 19,075.35 lakhs. They have employed 8,543 workers.
Assam is one of the fastest growing investment destinations in India. The state also enjoys a
geographic advantage as it gives access to the mainland of India as well as South Asian Markets. The
growing investment climate and the state’s investment policy, such as NEIDS 2017(North East
Industrial Development Scheme) provided attractive incentives and subsidies for national and global
investors.
The primary occupation in the state of Assam is agriculture, accounting for 69% of the total workforce.5
The major agricultural products are rice, pulses, jute, tea and fruit cultivation. Apart from agriculture,
2Statistical Handbook Assam, 2019

3 MOSPI
4 https://msme.gov.in/sites/default/files/MSME-ANNUAL-REPORT-ENGLISH%202020-21.pdf
5https://neist.res.in/stiner/assam.php

traditional crafts such as pottery, terracotta works, brass craft, cane and bamboo craft and weaving
are also a source of major employment for the people of Assam.
2.2 District overview

Barpeta is one of the Aspirational Districts
6selected by the NITI Aayog. It is an
administrative district in the state of Assam

with the district headquarters at Barpeta. The
Barpeta district of Assam is bordered by
Kamrup and Goalpara districts in the south,
Nalbari district in the east, and Kokrajhar and
Bongaigaon districts in the west country of
Bhutan in the north. The district has a
geographical area of 3245 sq. km and a
population of 16,93,622. A majority of the
population live in rural areas with only 8.7% of
people in urban areas.
Barpeta is well connected by both rail and

road with Guwahati as well as with the rest Figure 5: Barpeta district
of the country. The national highway, NH-
31 also runs through the district and there is a state highway connecting Barpeta town, the district
headquarters in the town of Howli, a commercial centre in the district.
The GDP of the district was INR 11,12,804 lakhs in 2016-17 at current prices and the district ranked
8th highest in the state7. The district does not have any major public sector industries and there are a
few small-scale industries in the district. However, it is rich in cottage industries like pottery, black
smithy, gold and silver smithy, cane and bamboo and cane work, furnisher, bricks etc.
The government is working to improve the condition of all cottage industries and the Industries
Department has provided financial
assistance and knowledge support under Bell Metal
their 20-point programme through training Industry,
programmes and provision of machinery to 6%
young entrepreneurs.
Bamboo
Lifestock and Cane
Trade and commerce are an important
Firework farms, Industries,
economic activity of the people of the 16%
Units, 2% 32%
district. Barpeta town and Barpeta Road,
Howli, Pathsala etc are the main centers of
trade and commerce in the district .In the
Sericultur
past places such as Barpeta town, e Units,
Tarabaari (Bahari), Mandia etc were used 14%
to transport merchandize in large boats and Agro
ships in the river. But due to construction of Handloom Fisheries, Based
embankments that has been virtually Units, 9% 7% Industries,
14%
stopped. Trade primarily takes place
through rail and road in the district. jute,
paddy, rice, timber, raw fish, vegetables Figure 6: Industry- wise break up of Barpeta District
are the important products dealt in and
exported in and outside the district.
6Aspirational district programme by NITI Aayog aims to transform districts within states that are developmentally
challenged across sectors such as health, education, infrastructure, financial inclusion and skill development.
7
Statistical Handbook Assam 2019

The major industries operating in the district of Barpeta are highlighted as follows 8.
The district administration also provides digital literacy to the each and every rural household under
the PMGDISHA Scheme. There are a total of 1,317 registered MSME in the district out of which 91%
are Micro and 8% are small and about 1% are medium as per the District Wise Udyog Aadhar
Registration details.9
Banking and Finance

There is a wide network of banks in the district. There are 60 branches of scheduled commercial
banks and 20 branches of the regional rural banks in the Barpeta district. The credit deposit ratio is
58% in commercial banks. AGVB is a regional rural bank and the lead bank in the district with 20 bank
branches. Among the commercial banks, the State Bank of India (SBI) has 14 branches in the district.
Also, three cooperative banks and seven private banks are operational in the district.10
The table below shows details of the banking infrastructure.
Table 5: Banks in Barpeta District
District Scheduled Commercial Bank Regional Rural banks
No of Amount in INR Cr CD No of Amount in INR Cr CD

reporting Ratio reporting Ratio
offices (%) offices (%)
Deposit Credit Deposit Credit
Barpeta 60 2755 1597 58 20 489 42.09 71
8
District Census Handbook, Barpeta
9
dashboard.msme.gov.in
10
www.nabard.org

03
Sector
scenario

Sector scenario
Bamboo and cane are a Non-Timber Forest Produce and are an integral part of many communities
across the world providing employment to millions of people. Bamboo and cane have a variety of uses
and there are more than 1,500 documented applications of bamboo. Traditionally, they were used for
fuel, food, housing etc. and over time, they have become a key economic activity and are used
commercially for pulp and paper, construction, furniture, handicrafts, flooring, charcoal, mats/screens,
and woven products etc. Bamboo and cane have several socio-economic benefits and are
increasingly preferred over timber as they are easy to harvest transport, cheaper and more eco-
friendly.
3.1 Global scenario

According to data from the UN COMTRADE database, in 2018, international trade of bamboo and
cane commodities stood at USD 3.25 billion. Out of this, bamboo products accounted for USD 2.9
billion, while cane products accounted for USD 350 million. Asia accounted for 80% of the total global
exports and China was the world’s largest producer, consumer and exporter of bamboo and rattan
products. 11
Key Exporting Countries (In Million USD) Key Importing Countries (In Million USD)
Thailand 33 India 41
USA 52 Canda 46
India 68 South Korea 51
Vietnam 77 Australia 52
Canada 155 Japan 305
EU 337 EU 895
China 2,057 USA 1,007

0 400 800 1,200
0 500 1,000 1,500 2,000 2,500
Figure 7: Bamboo and Cane Trade

China was the largest exporter of bamboo products globally and export of bamboo products stood at
USD 2,057 million in 2018. Apart from China, EU, Canada, Vietnam and India also contributed
significantly to the global export of bamboo products in 2018. During the same period, USA was the
largest importer of bamboo products and imports of bamboo products stood at USD 1,007 million.
3.2 India scenario

India is abundant is bamboo and cane resources. Cane is largely used to make furniture while
bamboo is used to make decorative items. India has the second largest bamboo reserves in the world
after China and the country accounts for 30% of the world’s total bamboo resources. The total bamboo
bearing area is 1,60,037 sq. km and there are a total of 125 indigenous and 11 exotic bamboo species
found in the country. Bamboo is found in nearly all states in the country with more than 50% of the
bamboo species occurring in the north east. The top five states in India with largest bamboo bearing
area are Madhya Pradesh, Maharashtra, Arunachal Pradesh, Odisha, Chhattisgarh. 12
11
Trade-Overview-2018-International——final.pdf (inbar.int)
12
https://fsi.nic.in/isfr19/vol2/isfr-2019-vol-ii-assam.pdf

Despite the large reserves of bamboo, industrialization of bamboo is at a nascent stage. In India,
Bamboo is primarily used for personal/domestic consumption while industrial use is still limited with
minimum value addition. The total market size of the bamboo industry in India is estimated to be INR
62.5 billion however only contributes 4% of the market for bamboo products 13. In 2018, India exported
bamboo products of worth USD 68.4 million and imported bamboo products of worth USD 41.4 million.
14
Figure 8: Top five bamboo bearing states
Table 6: Bamboo products exported by India in 2018
Product category Export value (In million USD)

Bamboo articles of daily use 61.1
Bamboo tableware and kitchenware 5.4
Bamboo raw materials 0.9
Bamboo-based panels 0.5
Woven bamboo products 0.4
Bamboo furniture 0.1
Total 68.4
Table 7: Bamboo products imported by India in 2018
Product category Import value (In million USD)

Bamboo raw materials 30.7
Bamboo articles of daily use 4.6
Woven bamboo products 1.6
Bamboo tableware and kitchenware 1.5
13
https://worldbamboo.net/wbw_india2019/Subramony,%20TP%20Industrial%20and%20Global%20Market%20Potential%20of
%20NE%20India.pdf
14
Trade-Overview-2018-International——final.pdf (inbar.int)

Bamboo-based panels 1.3
Bamboo pulp and paper articles 0.9
Bamboo charcoal 0.3
Bamboo furniture 0.3
Bamboo shoots 0.2
Bamboo panels for construction 0.1
Total 41.4
3.3 State Relevance

Bamboo and cane craft are primarily a household industry and occupies an important place among the
handicrafts of Assam. It provides employment to the cultivators and full-time occupation to the highly
skilled artisans who produce fine decorative baskets, furniture and mats, etc. on commercial scale.
There are 480 units undertaking cane and bamboo works in 26 districts of Assam with an investment
of INR 371.34 lakh and employing 2,212 people15.
Assam has 60% of India’s growing stock of bamboo. It produces 51 different varieties of bamboo
and 14 species of cane. Bamboo and cane are used to make various products such as furniture,
houses, incense sticks, baskets, mats, ladders, toys, fans, cutlery, houses, fences, agricultural and
fishing implements, storage, basketry, household articles and other applications. The state has a
bamboo bearing area of 10,525 sq. km and it makes up 6.58% of India’s total growing stock of
bamboo16. Bamboo is primarily found in the districts of Cachar, Karbi Anglong, North Cachar Hills,
Nagaon and Lakhimpur.
The Government of Assam has undertaken several initiatives to promote and support the development
of bamboo and cane sector in the state. The Assam Bamboo & Cane Policy aims to promote
bamboo cultivation, develop latest technology to harvest bamboo, establish post-harvest and
treatment facilities, and development of bamboo clusters. The Assam Bamboo Development Agency
(BDA) was established under the National Bamboo Mission to promote bamboo products including
furniture, tiles, flooring, cladding, handicrafts in line with the National Bamboo Mission. They have
developed six bazaars and seven retail outlets in the state till now. Apart from this, the state
government has developed the Cane and Bamboo Technology Park (C&BTP) at Chaygaon under the
Infrastructure Upgradation Scheme with the objective to develop bamboo cluster and provide
infrastructure facilities to MSMEs and entrepreneurs.
Assam has been traditionally rich in bamboo, but the bamboo craft from the state does not hold a
prominent place in the handicraft market of India and Assam’s share in the export trade is negligible.
The table provides key statistics on bamboo in Assam 17.
Figure 9: Bamboo statistics Assam
Indicator Details
Bamboo bearing area inside recorded forest area 10,525 sq. km
Percentage of India’s growing stock of bamboo 6.58%
15
https://assam.gov.in/citizen/428
16
17

Total number of culms 3,829 million

04
Profile of the
cluster
Profile of cluster ecosystem
4.1 History and evolution of the cluster
Cane and Bamboo craft are an integral part of the rural economy and a vital source of livelihood for a
large population. Originally, minority communities carried out cane and bamboo crafts in the cluster for
personal consumption or local needs. Over the years, the cluster has developed naturally, and
commercial production in the cluster has grown substantially. The evolution of the cluster is detailed out
below:
Figure 10: Cluster history and evolution
Diagnostic Study Report of Chakchaka Cane and Bamboo Cluster, Barpeta
43
Before 1980
Before 1980’s the villagers in the cluster were engaged in various economic activities, and cane and
bamboo crafts were a part-time activity primarily for domestic use. Products made included items like
bamboo baskets and bamboo hat (japi), primarily used by the farmers.
1980-1985
In 1980, a local entrepreneur by the name of Sushil Das started training villagers on bamboo
manufacturing. He was trained in cane and bamboo product manufacturing in Japan and was a pioneer
in the commercial production of bamboo products. Das started training the people of Dhupguri village
to produce diversified cane and bamboo items like trays, candle stands, etc. He introduced various
designs to commonly produced product ranges such as baskets, japis (head gear), and other household
utilities with limited design and style variations.
The training provided by Mr. Das gained popularity over the years and more and more artisans from the
nearby villages like Raipur, Bhaluki and Josistha started producing bamboo and cane crafts.
1987-1997
Mr. Das trained several people in the cluster included Mr. Sohrab Ali, who established his unit M/s
Salma Bah-Bet udyog in 1987-88 for commercial production and sales of bamboo products. He
started producing bamboo products like baskets, trays, pen stand, wall decorative etc. and
participated in several local melas and fairs to sell his products. He made his first visit to Delhi in the
year 1996-97 to participate in the International Mela organized by IIT-Delhi in the Pragati Maidan
where he put up a stall for product display and sales. During his visit to Delhi, he established contact
with traders in Delhi, Murshidabad and Hyderabad and thus started selling his products to other
states. During this period, he also started selling his products to Assam Emporium in Guwahati.
2000-2010
The first major intervention in the cluster was conducted in 2004 by a local NGO, “ Anchalik Gram
Unnayan Parishad” in collaboration with the Industrial Design centre of IIT Bombay who organized a 7
day training course on the designs, treatment and finishing in Bamboo Craft.
This was followed by a significant contribution in 2006-07 when the SFURTI Scheme was
implemented in the cluster by the local NGO Anchalik Gram Unnayan Parishad as the Implementing
Agency under KVIC Nodal and IIE, Guwahati being the Technical Agency.
The NGO also facilitated credit support by providing 180 cluster artisans Credit Card Loan from AGV
Bank of the region. Each artisan could avail credit support up to IINR 25,000 for procuring raw material
and portable machineries.
2010-2012
A few cluster artisans namely Md. Aziz and others went to Cairo in Egypt and Kunming City in China to
participate in the international trade fair. The travel arrangement was facilitated by the NGO under the
support of KVIC and the rural development ministry.
2015-18
In December 2015, NID Ahmedabad intervened through its Design Clinic Scheme in Balabhita, Raipur,
Bhaluki and imparted design training to 35 artisans. Some interesting designs prevalent in the cluster
were introduced by NID.
44
2018- Present
In May 2018 Bamboo and Cane Development Institute (BCDI), Tripura implemented a 4-week product
and design development training for 20 artisans in Barpeta town area under supervision of national
award winner Mr. Manendra Deka. The program was sponsored by EXIM bank CSR fund. Only 4
artisans from the cluster participated in this training programme.
4.2 Regional overview

The cane and bamboo cluster at Chakchaka is spread across four adjacent villages, namely Raipur,
Bhaluki, Dhugpuri and Joshihatigaon which are located in Chakchaka block, Barpeta District of
Assam. However, majority of the cluster activity takes place in Raipur and Bhaluki village. The villages
are well connected with road and railways. The nearest National Highway, NH-17 is 5 km away from
the cluster and the nearest railway station, Barpeta Road, is about 15 km away. The cluster is also
well connected to the commercial towns of Barpeta and Howly that are located at a distance of around
15 km. The banks and financial institutions are located at Barpeta road, Simlaguri, Howly and Barpeta
town, which is at 15 km distance.
Figure 11: Location of the cluster
Table 8: Connectivity of the cluster

Distance from
S. No Particulars Details
cluster
1 National Highway NH 17 5 km
Lokpriya Gopinath Bordoloi
2 Nearest Domestic/International Airport International Airport, 140 km
Borjhar, Guwahati
3 Nearest Railway Station Barpeta Road 20 km
4.3 Nature of the Cluster

The cluster has around 340 households of which nearly 73% of the families are engaged in the
bamboo and cane crafts. However, the cluster is primarily a bamboo cluster and the use of cane is
minimal and is mostly used for weaving. The households observe equal participation from the male
45
and female members of the family in the production of bamboo utility products such as bamboo trays,
wall decorative, flower vase, pen stands etc. In addition to the household units , the cluster has ten
micro MSME units engaged in the production of bamboo utility items along with certain premium
products such as bamboo bottles, lamp shades, wall lamps, VIP furniture, center table set , tripod
furniture set etc.
These ten units employ the artisans of the cluster, either full-time or part-time and undertake marketing
and selling of the products produced by the household units in the cluster.
The units of the cluster can be categorized as follows:
Household units
(Registered individually
with the Office of DC
Handicrafts)
Formal
Private firms /Micro Units

(Registered with DIC EM-II
Cluster
No structural framework
Informal and authorised support
from the Government
Figure 12: Nature of the cluster
Private Firms/ Micro Units:

At present, there are ten micro-units in the cluster located in Raipur and Bhaluki Village. These units
primarily manufacture high-value products such as ‘VIP sofa’, lamp shades, tripod furniture set,
hanging lamp shades, bamboo bottles, and household utility items such as stools, dustbins, trays, pen
stands and baskets. These ten units also employ about 40-50 artisans of the cluster, with an average
turnover of INR 12Lakhs to INR 15Lakhs in a year. Out of these ten units, five units have EM-II
registration.
.
Household Units
There are 250 household units which have an average turnover of INR 2.5 lakhs to 4 lakhs and have
an average investment of around INR 25,000 to 30,000. About 90% of households are registered with
the office of DC-Handicraft and have MSME artisan card. They procure the raw material either
independently or from the MSME units mentioned above. They manufacture utility items like bamboo
trays, chairs, baskets, wall decorative, pen stands etc. The product made by the units are either sold
by them directly or handed to the Cluster Development Executive (CDE) appointed during the SFURTI
intervention in 2006-07 who participates in several national and international exhibitions for the
promotion and selling the cluster products. The CDE is in overall responsible for the development of
the cluster and works to establish linkages with the concerned agencies and institutes for the
promotion of the cluster.
46
4.4 Vital Statistics of the Cluster
The vital statistics of the cluster are provided below.

Table 9: Vital Statistics of the Cluster
S. No. Parameters Details
1. Number of villages in the cluster 4
2. No. of artisans in the cluster 600
3. No. of Households in the cluster 340
4. No. of household engaged in Bamboo Crafts 250
5. Micro units 10
6. Employment (per unit) 5-6 artisans
7. Total no of Registered Units 5
INR 20,000-25,000
8. Average cluster investment
9. Average Cluster Turnover INR 150-230 Lakhs
Table 10: Occupational Breakup of the Cluster Households
S. No Occupation/ Activities Primary Occupation of the Cluster Households
1 Artisan works 73%
2 Agriculture 15%
3 Employed in Local Shops and Outlets 5%
4 Self Employed 5%
5 Labour 2%
The percentage of household in the four villages currently involved in the bamboo crafts activity is as
presented below:
47
Table 11: cluster Household engaged in Bamboo Crafts
S. No Occupation/ Activities 1 2
No of HH 3
No. of Artisan % of Artisans
1 Raipur 180 450 75%
2 Bhaluki 50 100 17%
3 Joshihatigaon 15 30 5%
4 Dhupguri 5 20 3%
5 Total 250 600 100%
Approximately 75% of the artisans are located in Raipur, 17% in Bhaluki, while only 8% are located in
Joshihatigaon and Dhupguri.
4.5 Products of the cluster
The Chakchaka Bamboo and Cane Cluster is primarily a bamboo cluster. The use of cane is mostly
found in the jointing and weaving stage of the production process where the thin cane slivers are used
for holding the bamboo joints and for weaving the product to highlight its aesthetics. Thus it can be
said that the product so produced by the cluster uses bamboo as the primary raw material while the
use of cane slivers is seen but at a minimal level.
The products of the cluster can be categorized into two segments:
► Higher Value Products such as VIP sofa sets, lamp shades, mounted lamps, tripod furniture
sets, dining and centre table, bamboo armrest sofa etc.
48
Figure 14: VIP Furniture
Figure 13: Bamboo mats
Figure 15: VIP Sofa Furniture Set and lamp stand
Figure 16: Bamboo Dining Table and bed arm rest
49
Figure 17: Tripod furniture set, and Center Table set
► Household Utility Items such as bamboo bottles, coffee mugs, chairs, wall decorative,
designer flower vase, pen stands , trays , baskets etc.
Figure 18: Standing Flower Vase and Mounted Flower Vase
50
Figure 19: Bamboo chairs and tray set
Table 12: Products of the cluster
Average
S. No Quantity produced
Selling
Product Name Product Type annually within the
Price (in
cluster (in pieces)18
INR)
1 VIP Sofa set High Value Product 100 25,000
2 Lamp stands High Value Product 300 2,700
3 Mounted Lamps High Value Product 250 2,000
Dining Table
4 High Value Product 150 35,000
Set
Center Table
Set
6 Arm Rest Sofa High Value Product 500 1,800
Tripod Furniture
Set
18Approximate figures based on stakeholder discussions
51
Standing Flower Household Utility
8 1,500 600
Vase Product
Mounted Flower Household Utility

9 Product 1,200 800
Vase
10 Wall Decorative Household Utility 3,000 500

Product
11 Bamboo chair Household Utility 200 3,500

Product
12 Coffee Mug Household Utility 5,000 150

Product
13 Bamboo Bottle Household Utility 6,000 250

Product
14 Trays Household Utility 4,000 300

Product
The table shows the different types of products produced within the cluster. The products are
categorized as high-value and household utility items depending on the price at which they are either
sold locally or traded in other states.
The high value products such as the VIP Sofa, Bamboo Furniture Sets, Lamp shades etc are
produced by the micro units in the cluster. The total quantity of
higher value products made on an average throughout the year Household utility items
forms around 7% of the total products produced in the cluster. form 93% of total annual
production of the cluster
In addition to this, the household utility items such as trays,
baskets, decorative, bamboo bottles and flower vases etc are
produced by all the units including the household units forms about 93% of the total annual production
of the cluster.
52
05
Clusters
Diagnostics
53
Clusters Diagnostics
5.1 Cluster stakeholder
There are several stakeholders that provide support and enable growth of the cluster. The principal
stakeholders in the cluster are the micro units of the cluster along with the household artisans. The other
stakeholders include raw material suppliers, local NGO, machinery suppliers, transporters, support
institutions like the local NGO, technical institution like IIE, financial institutions like AGVB, SBI and Bank
of India, government institutions such as ASRLM, District Industries and Commerce Centre, Khadi and
Village Industries Commission, DC Handicrafts along with the CDE appointed during the SFURTI
intervention in the cluster. The figure below mentions the key cluster stakeholders.
Govt. Bodies
DC handicrafts, DICC, KVIC,
MSME-DI, ASRLM
Banks/FIs
Key Household units and
Assam Gramin Bikash Cluster micro units
Bank, BoI, SBI
Actors
BDS Providers
Technical Education Raw material suppliers,
Institute traders, transporters,
IIE Anchalik Gram Unnayan
Parishad
Figure 20: Key Cluster Actors
5.1.1 Micro Units

There are ten micro units in the cluster engaged in the production of bamboo products. Among these
ten units, eight are present in the Raipur village while the other two units are present in the Bhaluki
village. These micro units are the major contributors to the overall turnover of the cluster. The units
have an average annual turnover of around INR 12-15 lakhs. These units also have a considerable
amount of investment around INR 2-2.5 lakhs in machineries and employ the cluster's artisans in the
production process. An average unit employs around 5-6 cluster artisans.
5.1.2 Household Artisans

There are around 250 households in the cluster that are engaged in bamboo craft activities. Out of these
250 households, 90% of households are registered with the office of DC-Handicraft and have MSME
artisan card. An average household has 3-4 members engaged in the bamboo craft, spending 300 days
or more in a year to make bamboo products. Every household has at least one skilled artisan and the
average family turnover is around INR 20,000-35,000 per month.
54
5.1.3 Raw material suppliers
Bamboo is the major raw material available locally within the cluster. The artisans of the cluster usually
procure raw materials from the local market in and around Barpeta road and Howly market. Traders
supply raw materials to all the villages in the cluster as per the requirement of the units. There are
several bamboo dealers in the local market and cluster artisans have individual preferences in selecting
their suppliers. Some of the common raw material suppliers are Saman Ali, Sadik Ali, Abdul Haque and
Rahmat Ali.
The micro-units of the cluster and the local bamboo dealers also prefer procuring a particular species
of bamboo named “Dendrocalamus Giganteus” from the Kumarikata region in the adjoining Nalbari
district. This particular species can grow upto a height of 20-30 m and is typically used in the production
of the premium products like bamboo furniture sets, ‘VIP sofa’ by the cluster units.
In the case of the household units, the micro units in the cluster may also supply raw materials for
specific orders.
5.1.4 Machinery and Equipment Suppliers

The cluster units use basic handheld tools like hex-saw, bill-hooks, pliers, cutters, hammers etc along
with certain portable electric tools like circular saw, drilling machine, lathe machine, polishing machine,
jigsaw machine, slicing and sizing machine procured from dealers present in Guwahati and Barpeta
Road. The use of modern machineries started in the cluster post SFURTI intervention in 2006-07 and
when the local NGO invited Bosch dealers in 2010 to provide the cluster artisans with portable electrical
machineries.
Thus, over the years, almost every household in the cluster have purchased a few such portable
electrical machines like cutting and drilling machine from local dealers in Barpeta such as Brahmaputra
Machineries in Barpeta road, Jamal Hardware etc.
5.1.5 Traders
There are around 25 traders cum artisans operating in the four villages who procure bamboo products
from the cluster artisans and sell them to big dealers or bulk purchasers in Guwahati, Siliguri, Kolkata,
Delhi, Bangalore, etc. These traders also practice the bamboo craft in addition to selling the cluster
products to the bulk purchasers from other cities and states place orders in advance and visit the
clusters weekly to pick up the products from the artisans. Thus, these 25 traders can be said to be the
major aggregators who help in selling the cluster products in and outside the region. There are two
major aggregators who have linkages with a larger number of bulk purchasers throughout the country.
5.1.6 Packaging Providers
As per the discussions with the stakeholders, the products of the cluster do not require any packaging.
During the transportation of the products, the artisans use normal packaging such as carton boxes for
decorative and utility items, procured from Barpeta Road market at the rate of INR 110. For the bigger
items as sofa set etc., the packaging is done by wrapping newspaper on the product body with threads
and then placing the items in gunny bags which are locally available at the rate of INR 100 per kg. The
packaging materials are generally procured from the market in Howly, Barpeta Road and Barpeta town.
55
Figure 21: Product Packaging in Cartons
5.1.7 Transporters
No special transportation arrangement is noticed in the cluster. The local traders collect a majority of
the products from the cluster artisans. In case products have to be delivered to the buyers from other
districts of the state, they are transported through auto, vans or public transport such as inter-district
buses as roadways are well connected to state and national highways.
For selling products in Guwahati, the products are collected by the major aggregators from the
artisans, and they sell it in Guwahati to their respective dealers. The individual aggregators bear the
transport expenses while selling the products, and the same mode of transportation is used as
mentioned above.
For products sold in the markets outside the North Eastern Region, railway is used. The aggregators
load the packaged products either in Guwahati or Bongaigaon Station, located roughly 50-70km from
Barpeta Road. The average cost of transporting the products via roadway through hired semi-DI
trucks or vans and loading and freight charges of the railway is approximately INR 6,000- INR 8,000
per instance.
Figure 22: Packaged Product ready for dispatch
56
5.1.8 Industry Associations
The cluster does not have any industry associations as found during the survey. The cluster
members are working independently and even though SHGs were formed by the local NGO, these
SHGs are non-existent today. The implementing agency of the cluster used to facilitate with KVIC and
DRDA to make traveling and accommodation arrangements for the artisans to participate in national
exhibitions and fairs. However, over the years such support from these institutions is limited in the
cluster. At present, the artisans participate in fairs and exhibitions at their own expense.
5.1.9 Government organization and Institution

► MSME-Development Institute, Guwahati (MSME-DI Guwahati)
The Micro, Small and Medium Enterprise Development Institute of the Government of India with
regional office at Guwahati has developed several MSME clusters in Assam and other North Eastern
states. In addition to this the department has various provisions for the promotion and development of
individual enterprises through a wide spectrum of services to the MSMEs including entrepreneurship
development training, technical and managerial consultancy services to MSMEs, export assistance
and provision of facilities for testing and toll making. In addition to this the centre also has provision for
promotion of enterprises through its Market Promotion Schemes wherein it provides financial
assistance for participation in fairs and exhibitions. The institute facilitates and supervises the
generation of Udyog Aadhaar Number though the centre at Guwahati and other branch offices and
also has provision of generating the same from the District Industries and Commerce Centres of the
Department of Industries, Government of Assam.
However, no assistance to date has been observed from the organization in the development of the
cluster.
► District Industries & Commerce Centre (DICC), Barpeta
DICC Barpeta facilitated conducting training on new product development in the Balabhita region of
Barpeta District by inviting subject matter experts on bamboo treatment and product design from IIT
Bombay back in 2010. The cluster artisans attended this training session. The DICC of Barpeta district
has also aided the cluster artisans by providing training on design tools, use of portable electric
machineries, bamboo treatment and product finishing around 2015-16 within the district. In addition to
this, DICC in collaboration with the DC-Handicraft and EPCH conducted a two-day workshop session
on Export Promotion, Packaging and Design Development of North Eastern Handicraft in 2015-16.
The DICC helps promote schemes like Pradhan Mantri Rojgar Yojana (PMRY), organizing training,
exposure visits, providing support for participation in fairs and exhibitions, transport subsidies, etc.
However, the cluster villages have not availed avail any schemes from the DICC.
► Khadi and Village Industries Commission (KVIC)

KVIC provides financial support under its various schemes and provides marketing support through
fairs and exhibitions and training entrepreneurs under PMEGP scheme, MUDRA Loans etc.
KVIC Barpeta was the nodal agency of the first major SFURTI intervention implemented in the cluster.
The organization provided all the handholding support right from appraisal of the DPR received from
the Technical Agency to analysing the cluster's project viability, outcomes, impact, and sustainability. It
was under the support of KVIC that a common facility centre (CFC) was set up in the Raipur Village of
the Cluster back in 2006-07.
KVIC Barpeta also provided training on upgrading existing product design and new product
development by an impanelled KVIC designer, Sri Ranjit Gogoi.
In 2008-10, KVIC Barpeta made necessary travel and accommodation arrangements for the cluster
artisans to participate in national and international trade fairs and exhibitions conducted in New Delhi,
Mumbai, Bhopal, Indore, Agra, Nainital etc. KVIC also paid the expenses of the stalls used by the
artisans in such trade fairs.
57
► Assam State Rural Livelihood Mission (ASRLM)
ASRLM is implementing National Rural Livelihood Mission (NRLM) in Assam with the objectives laid
by NRLM for enhancing the social and economic empowerment of the poor rural of Assam. It focuses
on stabilizing and promoting existing livelihoods of the poor in the state.
5.1.10 Support Institutes

► Indian Institute of Entrepreneurship (IIE) Guwahati
IIE Guwahati provided the following services in the development of the cluster
o Initiated cluster development in 2006-07 and provided support in developing the cluster and
rendering benefits to the artisans.
o Capacity and skill development: This involved cluster development, training on modern
machinery, diversification of products, market-led production, SHG development and
management, and market access
o Training on entrepreneurship development and assisting with finance from banks
IIE Guwahati is currently the nodal agency of several schemes of the MSME Ministry and can play a
pivotal role in the development of the cluster.
► Anchalik Gram Unnayan Parishad
Anchalik Gram Unnayan Parishad is a non-profit grassroot NGO focused on rural development and
livelihood generation for marginalized communities. At present, Anchalik Gram Unnayan Parishad, is
the only institution offering support to the cluster villages. The NGO was the Implementing Agency (IA)
of the SFURTI Scheme in the cluster in 2006-07. This institute has played a significant role in the
development of the cluster. Some of the functions exhibited by the NGO in the cluster is discussed
below:
► Established a product showroom on the Barpeta Road to showcase the product of the cluster.
► Since 2008, the institute has played an active role in making all necessary travel and
transport arrangements for the cluster artisans to participate in national and international level
trade fairs and exhibitions.
► It was the first institute to arrange credit facilitation support for the cluster artisans by
arranging credit card loan facility up to INR 25,000 for about 180 cluster artisans from Assam
Gramin Vikas Bank in 2009-10.
► The concept of Self-Help Group and establishing a framework of internal lending among the
cluster artisans was first explained by this NGO.
► Construction of a Bamboo treatment Tank within the cluster
► Played a pivotal role in the electrification of the cluster units in 2005-06 and getting a
commercial load line for the CFC constructed within the cluster.
However during discussions with the NGO it was observed that over time, minimal support is provided
to the cluster artisans by the NGO as it has been carrying out activities from its own finance with no
support from any organisation or government department.
5.1.11 Financial Institutions

The key Financial Institutions (FI) nearest to the cluster artisans are Bank of India, Union Bank and State
Bank of India, and Assam Gramin Vikas Bank in the Simlaguri region, located about 2km from the
cluster. In addition to the banks mentioned above, the district also has micro finance institutions such
as Rashtriya Grameen Vikas Nidhi (RGVN), which has two branches in the district, on Barpeta Road,
and in Barpeta Town. Despite the presence of the three FIs, access to finance is very limited.
► Bank of India (BOI)
58
The bank has a branch in the region, about a kilometre away from the cluster. As per the discussions
with the bank officials, the artisans had approached the branch for availing term loan assistance,
but due to the failure to provide appropriate KYC documents the loan application was rejected by
the bank. In addition to this, the branch also stated the risk of credit default associated with the
cluster as the artisans were unable to provide the detailed plan for the utilization of the credit to be
provided.
► State Bank of India (SBI)

SBI is the primary bank in the district. The bank is implementing various schemes under
Government of India for generating self-employment such as PEMGP, PMAY, MUDRA Loan.
From field visits it was found that very few members of the cluster have approached the bank for
support but due to the lack of availability of PAN Card, Aadhar Card and ITR statement, the credit
application was rejected by the bank.
► Union Bank
The branch is located in the Simlaguri region about 2km away from the cluster. The interactions with
the bank authorities revealed that some artisans approached the bank for a personal loan, but due
to error in documentation and failure to produce valid documents, the loan was rejected.
Other banks near the cluster are Punjab National Bank, Assam Gramin Bikash Bank, Canara Bank,
Bandhan Bank, Syndicate Bank etc.
Some of the micro units of the cluster have availed personal loan amounting to a maximum of INR 1
Lakh from Syndicate Bank. However as per interactions with the bank authorities, it was observed that
the units keep defaulting on making the regular EMI payments.
5.2 Raw material availability in the cluster

Chakchaka Cluster is primarily a bamboo cluster and bamboo are the major raw material procured
from the local market. The cluster artisans procure the following varieties of bamboo available in the
cluster: Bhaluka, Makol, Keko and Bijuli. Moreover, a special variety of bamboo called Raja Baah is
procured from places near Bhutan border, about 50 km away from the cluster.
Apart from bamboo, cane strips are also procured from the local market but, the use of cane is
minimal and is used mainly for weaving and aesthetics purposes in their higher-value products like
bamboo furniture sets and bamboo beds.
In addition to bamboo and cane, Kerosene, Varnish, sandpaper, nails, and other adhesive
materials are also the secondary materials required by artisans of the cluster. The source,
price and quantity of raw material procured are listed below.
Table 13: Source of Raw Material and Accessories
Cost per
Average Length Quantity procured
Raw material piece Source
(in feet) (in pcs)
(in INR)
Bamboo Variant
Bhaluka 40 250 Local Market
Makol 32 200 Local Market

As per product
Requirement
Keko 50 500 Local Market
Bijuli 30 100 Local Market
59
Kumarikata, Near
Raja 100 700
Bhutan Border
1 Bundle with 100-

Cane Strips 14-15 Feet 800-1200 Local Market
120 sticks
INR 70 per 2-3 Litre on an

Kerosene Local Market
litre average by a unit
Sandpaper INR 1200 Local Market 12 sheets
Varnish INR 1000 Local Market 4 Litre
Nails INR 150 Local Market 500gm
Fevicol INR 150 Local Market 500gm
Boric Acid
INR 80 Local Market 200gm
Powder
USTAD
INR 300 Local Market 500ml
Insecticide
As far as the raw materials for the cluster are concerned, the status can be summarized as under:
► The primary raw material is bamboo,

and the different variants of bamboos
are used depending on the type of
products. This is adequately
available throughout the year. Most
artisans procure it from the traders
supplying it to the villages as well as
from Barpeta road and Howli market.
► For procuring the Raja Baah variety,

the artisans need to travel about 50 km
to Bhutan border where there are local
plantations of the variety. The cost of
procuring, transporting by road and
labour charges make it very costly and
is about INR 1,200 for a single piece so
it is procured in lesser quantity.
► In the case of the household units, the

micro units in the cluster may also
supply raw materials for specific
orders.
Figure 23: Bamboo poles in the cluster
► Cane strips are also procured in bundles from the local market and the supply is adequate
throughout the year.
► As far as availability is concerned, the cluster has easy access to supply in the local market.
However, since they buy in smaller quantities, the price is higher
60
► Though some SHGs were formed
by the local NGO back in 2006-
07, it is noticed that the artisans
are procuring raw materials
independently as per their
requirement. There is possibility
of bulk purchase; but as the
artisans lack finance as well as
storage facility this has not
been possible. There is also a
sense of price competition
among the cluster artisans so
unity among the artisans in
Figure 24: Bamboo slivers used for weaving
terms of common price for
similar product is rarely observed.
5.3 Production process

The production process followed in the cluster can be divided into the following three phases
explained below:
► Pre-processing of raw bamboo poles
Raw bamboo poles are procured and first cleaned with a cloth. The uneven projections at the
external knots are chopped off preferably using a dao (bill hook) or with a hex saw. This is
followed by peeling off the epidermis of the bamboo skin using a knife or long dao. The bamboo
poles are then immersed in a concrete tank filled with water and boric powder and then sun dried
to increase the durability of the product. It has been noticed that pre-processing operations take
nearly 45-50% of the production time, including cross cutting, peeling, splitting, slicing for tray or
handcrafted decorative items or cross cutting, treatment of bamboo with chemical, drying for
furniture or lampshades.
► Product Design
In this phase, the different pre-processed bamboo varieties are first segregated according to the
product profile. They are cut according to the required size with the help of hex-saw or with the
sawing machine. The products are designed as per the clients’ preferences. This phase of
production requires a skilled set of artisans working to shape the bamboo in the required product
profile. For fine crafting, the artisans use machines such as slicing and sizing machines to
accurately slice and sized the poles. This phase of production requires about 25-30% of the
production time.
► Product Finishing
The output of the design phase gives a skeletal product structure, but most of the value addition is
done in the finishing stage, reflecting the exact structure of the product. A majority of the value
addition is done in this phase. The phase begins with joining the bamboo edges in the product.
The product edges are smoothened with a sandpaper or with a sanding machine to remove the
irregular projections. The cluster artisans use cane strands as thin as a needle bundled together to
bind the joints and for weaving the product. This phase is completely labor intensive and uses
about 30-35% of the production time. After the weaving and jointing process is done, varnish is
used to provide a shine to the product.
The phases explained above can be broken into five substages. These stages are detailed below
to provide and overall understanding of the production process.
61
Pre Processing of Bamboo Product Designing Product Finishing
Poles
Figure 25: Production Process

Figure 1: Production Process
► Cutting and Peeling of Raw Bamboo Poles
This is the first process in the production of bamboo

handicrafts and furniture. The stage begins by cleaning
the raw bamboo poles with a sandpaper or coconut fibre
to remove the silica dust attached to the surface during
plantation or transport. The bamboo's external knots are
first removed manually by using handheld tools like hex
saw, long dao, big knife, etc. However, the cluster has a
lathe machine in the CFC, which the artisans
occasionally use to chop off the external knots from the
bamboo poles. This is followed by peeling the external
Figure 26: Pre-Processed Bamboo
epidermis of the bamboo skin using knives and long
dao. The peeling stage creates uneven irregularities in
the processed poles, so the sanding machine is used to tone the poles. The artisans also use
sandpaper to minimise the uneven projections to smoothen the bamboo's skin.
► Seasoning and Treatment of Bamboo Poles
The bamboo poles are cut into different sizes

according to the product to be produced. They are
segregated into various sizes and stacked together.
These smaller pieces are then sun-dried for about
three days to get an even tone. After the sun drying,
the poles are immersed in a concrete treatment tank
with hot water and boric powder. This is done to pull
out any quantity of starch inside the poles and prevent
any fungal growth on the bamboo. In short, treatment is
done to enhance the longevity of the bamboo. These
poles are pulled out of the tank in 7 10 days and are
sun dried before being used for production.
Figure 27: Bamboo Treatment Tank
► Cutting, Slicing and Designing of Bamboo
Product
62
The next process is cutting and slicing of bamboo based on the design requirement of the products to
be produced. The bamboos are cut to pieces and slices are made according to shape and size
required for the different products. During this stage, the artisans mostly rely on handheld tools like
hex saw, long dao and knives for chiselling off the poles. However, the CFC has a slicing machine to
be used by the artisans as per their requirement. Based on the product type, the design is made. For
decorative items bamboo are cut and sliced into various shapes depending on the design. To give a
different look to the sliced bamboos, peeling is done in a Criss cross manner for which small knives
are mostly used. The artisans do not use any artificial colour to highlight the product's texture or make
the product appear more attractive. The bamboo poles are burnt in the gas stoves to give it a reddish
brown or brownish black hue to highlight the aesthetics. This is visible in most of their products like
VIP Sofa, lamp shades, Furniture sets, bamboo bottles etc. This type of slicing is mostly observed in
the bamboo mats as shown below.
Figure 28: Product Designing
► Jointing and Weaving
The poles are then joined together either in the vertical horizontal orientation or in cross sectional
mode using bamboo or cane slivers to establish and rigid foundation of the skeletal bamboo structure
so formed. This jointing process is shown with the help of a diagram to explain the technique used by
the artisans for giving a foundation structure of the entire product. The joints are then wrapped with
either cane or thin bamboo slivers to affix the product all together. For a rigid structure, nails are also
pounded or adhesives like fevicol are used for holding the bamboo furniture or other products all
together.
Figure 29: jointing Technique of Bamboo Poles
63
Figure 30:Use of Cane Slivers in Joints
Figure 31: Bamboo and Cane Slivers used for Weaving
Weaving is important as it gives the product a high aesthetic value and also provides the desired
customization. For weaving, the cane or bamboo slivers are arranged in a flat oval structure, where
one side is flat and the other is round. These strips are attached on the canvas of the product with
nails and then woven to form an interlaced network at right angles in a horizontal and vertical pattern
where the slivers pass in under and over fashion. This is labour-intensive and requires accurate
precision. It is a hand-woven process and artisans use pliers for cutting off the extra lengths after the
strands are fitted into the body of the product.
Few weaving patterns followed in the cluster are shown in the pictures below.
Figure 32: Weaving Pattern
64
► Product Finishing
For product finishing, sandpaper or sanding machine is used for sanding the surface to remove
irregularities or sharp projections of bamboo pieces. It is followed by applying an insecticide such as
USTAD which is an acronym for cypermethrin used to prevent termite and insect breeding on the
product. This chemical is laid on the piece of cloth and uniformly rubbed on the entire canvas of the
product. This is followed by sun drying the product for a day and then using a thin layer of touchwood
liquid to varnish the surface for providing durability to the product and helps in sealing pores that can
later become prone to termite attacks
Figure 34: Varnishing of Finished Goods Figure 33: Finished Product with Jointing and
Weaving
5.4 Machinery/technology used

In most of the households, the technology used in the cluster is traditional. The cluster households use
basic hand tools such as hacksaw, long dao, knives of different sizes, hammers, etc for the bamboo
crafts. However, some mechanization is observed in the micro units of the cluster as they have
purchased some electric machines such as cutting, slicing, drilling and sanding machine etc from the
local dealers at Barpeta Road or from Guwahati. Some of the cluster units have also procured
portable electric machine such as circular saw, hand drills, polishing and sanding machine etc from
Bosch dealers at Guwahati back in 2009-10 who were invited to the cluster, as an initiative undertaken
by the IA of the cluster to mechanize the production process at the unit level. Thus, wastage of raw
material is minimal at the unit level as observed during the field visit.
Some of the common electrical machines observed in the cluster units during cluster visit are listed
below.
► Circular Saw:
This is used for cutting and slicing of bamboo poles. Circular Saw
This is mainly used to make straight and uniform cut
and slices with precise finishing with a moving
circular blade.
► Polishing and Sanding Machine:
This machine is used for smoothening, cleaning or

polishing the surface and is typically used during the Sanding Machine
product finishing stage. It also removes the uneven,
rough edges which occur after the product structure
is created. However, the artisans also sandpaper for
doing the same.
Figure 35: Circular saw and sanding machine
65
► Drilling Machine:
This is used for pounding holes in the bamboo poles

through which later cane or bamboo slivers can be
passed to assist in the jointing and weaving process. The
use of hand drills replaces the traditional screw and nut
twisting drills which required more man hours in doing the
same activity.
Some of the common handheld tools available at all the
households and cluster units used in production process
are detailed below.
Figure 36: Drilling machine
► Hammers used for pounding nails on the bamboo body for holding the poles together.
► Dao (Bill hooks), hex-saw, pickaxe and knives for cutting and slicing of the bamboo poles
► Pinchers for drilling holes in the bamboo body.
► Measuring Tapes for cutting and slicing of the bamboo poles into desired lengths by placing it
into the frames.
► Pliers used for gripping twisting and cutting bamboo and cane slivers into the desired profile.
► Traditional Drills used for pounding holes in the bamboo body.
Sandpaper, Measuring
Tape, Fevicol
Long Dao, Knives,
Scissors
Hex Saw
Pliers, Hammer, Steel Wool
Figure 37: Basic Hand Tools
However at the cluster households, wastage is seen mostly during the use of cane for binding and
tying works as due to the unavailability of slicing machine in the artisan’s households for making thin
slivers of cane, wastage to the tune of 40% in occurs in slicing and peeling the cane strands. For
cutting and peeling of bamboo, small knives are used which also leads to wastage as large chunks of
usable bamboo skin also gets peeled off during the initial treatment. Further since all work is done with
hand tools there are problems in finishing and uniformity. It was observed that the tools and equipment
cost ranges between Rs.400 to Rs. 800. As far as repairing of tools and machineries is concerned,
since it is a traditional activity major issues are taken care of by the artisans themselves. As far as
other equipment is concerned, these are available in the market at Barpeta road and Howli at a radius
66
of 5 km. The artisans select the equipment and the accessories on their own as per requirement of
the product to be made.
The cluster also has Common Facility Centre (CFC), established under the SFURTI intervention
around 2006-07. The CFC has installation of modern machineries such as cutting, grinding, drilling,
sanding machine along with a bamboo treatment and dyeing tank, plus other accessories which is
used by the cluster artisans who dwell nearby to the CFC.
The list of machines used in the production of bamboo products in the CFC of the cluster is given
below:
► Belt type sanding machine ► Portable sanding machine

► Tools grinding machine ► Hand splitter
► Table buffing machine ► Manual slivering machine
► Stand drill machine ► Manual stick making machine
► Hand drill machine ► Bamboo holding device
► Jig saw machine for design ► Wood turning lathe
► Table vice ► Mitre saw
► Clamps/carpentry vice ► Table saw
► Pneumatic nailer ► Drill bits with carbide tips
► Air compressor ► Manual press machine
► Spray gun ► Treatment tank
► Gas torch ► Dyeing tank
5.5 Product quality, testing and certification

There is no standard certification and product quality testing of the bamboo and cane products made by
the cluster units. The products from the cluster are well known in the market as the cluster artisans are
very popular for their craft in the nearby areas. The artisans themselves take up treatment of the bamboo
to make it durable and long lasting. Further since the units are producing as per order and design given
by buyers, they adhere to specific product specification given by the respective buyers. There is also no
such testing centre either private or government owned in the entire district.
5.6 Access to finance

A primary survey was conducted for assessing the credit requirement and challenges faced by the
cluster units based on interaction with the cluster stakeholders. Various aspects of financial needs
such as sources for demand for credit, type for credit requirement, existing credit delivery mechanism,
facilities available in the cluster for accessing credit, etc. were analysed.
100%
80%
No,20% 80% 65%
60% 50%
40% 30%
20%
Yes,80% 0%
Working Capital Raw Material Personal Loans Procuring
Loan Procurement for Modern
Infrastructure Machineries
Improvement
Figure 39: Source of credit demand
Figure 38: Credit Facility Availed
During interaction with the ten units in the cluster, it was observed that 80% of the units have applied
to avail credit facility within the cluster. However, the individual artisans or household units prefer to
take credit from the big units or friends or relatives. There is a lack of institutional sources of credit.
67
During 2009- 10, the local NGO also helped around 180 cluster artisans to avail credit by providing
them with Credit Card from AGVB with a limit of INR 25,000. However, the cluster artisans have not
yet cleared the EMI instalments.
The primary reason for availing credit within the cluster is to meet the gap in working capital shortage
and personal loan for repairing the infrastructure available with the artisans. Apart from this, around 15
artisans have availed credit facility through PMEGP scheme.
5.7 Cluster marketing & branding

Currently, the artisans of the cluster sell products directly to retailers in the local market or B2B
through the local aggregator or bulk purchasers in other states.
Products sold directly to retailers are sold by the artisans directly to the end consumers in the daily
bazaar or in weekly haats that take place in Barpeta Road and Howli. Both the male and female
household artisans visit the bazaar and sell it to the respective retailers or sit along the roadside to sell
the products.
Products sold B2B are either through the local aggregator or to bulk purchasers from other states that
have linkages with major units in the cluster. Some of the common bulk purchasers from other states
identified during discussion with the cluster units are from Hyderabad, Delhi, Murshidabad, Chennai,
Madhya Pradesh, Dehradun. The units sell approximately 60% of their produce to the local
aggregators or to the bulk purchasers
These cluster units receive orders with designs and measurements from the bulk purchasers and
distribute the order to the household artisans on a piece rate basis. Sometimes they engage skilled
artisans at their premises on contract basis to deliver the orders. The micro units provide the artisans
with raw material, accessory items etc. This type of contractual agreement is generally observed for the
higher value products like furniture and lamp shades. Final finishing and packaging of the products are
done at their premises before delivering the orders.
Apart from this the cluster unit owners participate in several handicraft product exhibitions in Delhi,
Bangalore, Jaipur in anticipation to get orders from new buyers. The units also participate in several
trade fairs across the state and the nation, in assistance from the IA to sell their products. However,
none of the units participated in any fair in the past one year due to the pandemic.
The marketing and promotion of the cluster products is also done by Mr. Abdul Ajiz who is the CDE
appointed during the SFURTI intervention. Based on interaction with Mr. Ajiz, it was noted that he
participates in several national and international trade fairs and exhibitions held around the country
throughout the year where he sells the cluster products. The major exhibition attended by him over the
years for selling the cluster products are listed below.
► Participation in international trade fair in China in 2010 and Switzerland in 2011 where he sold
cluster products such as flower vase, hair clips, trays, baskets etc.
► Participation in trade fair in cities like Chennai, Indore, Bhopal, Mumbai, Bangalore under
assistance from DC- Gauripur since 2010.
► Participation in SARAS Fair in 2016-17 conducted by District Rural Development Agency
(DRDA).
At present, cluster units are not selling the products under a brand name. Further, there is no
showroom in and around the cluster for the promotion of the cluster products.
The major market and sales channels are summarized below:
► Directly to customers: Products are directly sold to the end consumers in local market and
haats.
► Fairs and expos: The Cluster members participate in fairs and exhibitions organised by both
government and private players. For exhibitions organised by Government they have special
incentives in the form of free stall, travelling allowances, daily allowances during the fair days.
This is sponsored by KVIC, DICC and DRDA. However, major participation in such fairs are by
the CDE or by the micro units in the cluster.
68
► Retailers and bulk buyers: Products are sold to retailers and bulk purchasers such as shops
in Guwahati, bulk buyers in Delhi, Haryana, Bangalore, and Mumbai etc.
► Aggregators: These aggregators are the major players in the cluster who also have units and
produce in bulk. These aggregators collect the products from the small artisans and market
them.
The states in which the cluster's products are currently being sold or traded are marked on the map.
Figure 40: Current Market of the Cluster Products
5.8 Cluster employment and skill assessment

Based on the stakeholder interaction, the job roles of the artisans with the production and marketing of
the products are mapped. Cluster members are traditionally skilled and have experience in bamboo
activities. Artisans generally have minimal formal training. The residents of the cluster can be divided
into three categories based on their skill level
► Micro Unit Owners

They are skilled artisans aware of the different production stages and skilled enough to make
modifications in the production phase as per the desired customization. These artisans have
attended several training programs on design interventions, seasoning and treatment of
bamboo and product finishing and have in-depth knowledge of the crafting activity. These unit
owners also participate in several trade fairs and exhibitions throughout the year to promote
and sell their products. These unit owners are about 10-12% of the cluster population and has
the major production of the cluster. During the field visit, it was observed that the ten micro
units employ around four to five artisans either on full time or on product basis. Therefore, on
average, 50-60 cluster artisans are employed by these units. Thus, in addition to providing
69
employment, the unit owners also provide training to the household artisans and allow them to
learn and practice the craft. There are two artisans from the cluster who have received an
award by the Ministry of MSME in 2016 for their craftsmanship. A cash reward of INR 25,000
was distributed to each artisan.
► Household Artisans
The majority of the cluster residents are the artisans who practice the bamboo craft in their
household. They are skilled artisans and have attended a few training programs conducted
during the SFURTI intervention. These artisans either prepare the product independently or
work under the micro unit owners. They are paid either monthly or on a product basis by the
unit owners. These artisans make about 80% of the cluster population and earn on an
average INR 1.5-2 Lacs on an annual basis either by working under the units or by selling the
products directly in the market.
► Daily Wage Earners
They are unskilled residents and take up different activities daily, either in bamboo craft or in
masonry activities and support the artisans in the production process. They carry out
secondary activities like peeling and drying the cane sticks, cleaning the work shed, etc. They
are unskilled artisans and are about 5-10% of the total residents of the cluster. The daily wage
earners earn, on an average, around INR 500-800 on a weekly basis.
Seasoning and Designing Product

Treatment of and
Cane Weaving Sales
• Cluster units • Cluster
• Micro Units • Cluster • Household • Cluster Units
Units • Aggregators
• Household Artisans Units • Househo / Unit
Raw
Artisans • Artisans Cutting and • Househol ld Product Owners
Material • Daily Slicing of d artisans artisans
Procureme finishing
Wage Cane
nt earners
Figure 41: Skill Level Assessment of Cluster
The unit owners and the household artisans procure the raw material as per their preference and
requirements. These unit owners are the skilled artisans and are aware of the different stages of the
crafting process. The household artisans are also skilled and either work on an individual basis or under
the micro units. The marketing and sales of the cluster products are done by the aggregators who are
also the unit owners of the cluster and have established linkages with the local trader or bulk purchasers
from other states. However, the household artisans either sell the product to the unit owners or directly
in the local market to the retailers or to the end consumers by setting up a roadside stall in the local
bazaar or haats.
70
5.9 Value chain and job roles mapping
The ten micro units in the cluster employ approximately 50-60 artisans. The household artisans work
individually or under the micro units. Both the unit owners and household artisans are skilled in the
crafting process. However, the unit owners have gained enough experience in the said activity by
participating in various training workshops or events and participating in various trade fairs and
exhibitions. As discussed with the stakeholders, the minimum number of workers required at each stage
of production process is mentioned in the table below:
Table 14: Cluster Job Role Mapping
Skill level Amount

Amount paid
Total paid to per
Stages of production workforce Wage
Semi- month
required Unskilled Skilled
Skilled Earners to
artisans
Cutting and Peeling of

2 1 1 0
Bamboo
INR 500
Seasoning and Treatment
5 1 3 1
of Bamboo Poles
INR
8,000-
Cutting, Slicing and
5 0 3 2 12,000
Designing
Jointing and Weaving 3 0 2 1
Product Finishing 2 1 1
Total 17 2 10 5
The units in the cluster, usually employ one to two unskilled and semi-skilled workers for peeling, cutting,
and initial processing of bamboo poles and other support activities. For cutting, slicing and slivering of
bamboo poles and cane strands three semi-skilled workers are hired who work under the guidance of
skilled artisans. The principal value addition is done during the product design in which 3 semi-skilled
workers are engaged in preparing standard products with minimal variation such as baskets, trays,
dustbins, etc. They work under the supervision of the skilled workers artisans. In addition to producing
standard household utilities, the skilled artisans are also engaged in producing higher value products
like VIP sofa, lamp shades, bamboo furniture and designer tables.
For peeling, cutting, drying the bamboo poles, the daily wage earners are employed who earn about
INR 500 per day. The artisans engaged in the profiling, designing and finishing of the product are paid
on a product basis or every month. They earn about INR 2,000-3,000 per week depending on the market
demand and raw material availability. The artisans work for around six to eight hours per day to finish
the product. However, from July to February, the cluster witnesses a high demand as most trade fairs
and exhibitions are conducted during this period of the year. Also, from September onwards the festival
season begins in the region. Therefore, there is a high demand of the products during this period and
artisans work overtime in finishing their product. However, the unit owners do not pay the artisans for
working overtime.
5.10 Environment and Occupational Health& Safety (OHS)

The following point was observed with respect to environment and occupational health safety:
71
► The production process involves peeling off the bamboo epidermis, a waste, and then treating
the processed bamboo with boric powder, which releases no effluents harmful to the
environment.
► As per the discussions with the stakeholders, the peeled skin of the raw bamboo and unused
bamboo sticks are discarded. The unused bamboo sticks are later burnt and released heavy
smoke into the surrounding. This burning of the waste is commonly observed throughout the
cluster. The smoke released contains oxides and monoxides of carbon which is harmful for
the environment
► The high quantity of carbon released can lead to asphyxiation and choking due to
overexposure to such gases.
► It was also observed that the cluster units use mechanized equipment like circular saw,
bamboo splitting and cutting machine, hand drills etc, which require electricity to operate. The
artisans are using such machines without any protective headgear and hand gloves to protect
from any fire flames that are ejected when the metal blades are dragged on the bamboo
surface.
► Cluster artisans are reluctant to switch to renewable sources of energy due to high
procurement cost.
► There are no proper sanitization facilities in the work shed inside the cluster because these
work sheds are constructed inside the artisan’s household, so sanitation facilities are minimal.
► The cluster artisans have negligible knowledge regarding the several MSME scheme and
artisan’s welfare schemes like PMEGP, PMAY, Atal Pension Yojna, PPF etc.
5.11 Infrastructure
The cluster village is well connected to
the district headquarter with well-built
concrete and block roads. Also, the
cluster is around 50 km from the
Barpeta Road Station which connects
it to the other district and states. The
cluster has an adequate supply of raw
material in the local market of Barpeta
road and Howli market. The artisans
usually procure machineries and
equipment from these markets. During
the cluster visit, it was observed that
the units are working with a minimal Figure 42: Infrastructure of micro units
infrastructure. The work premises are
constructed within the household of
the artisans and span around 40-50
sq. feet. Some of the units have
concrete flooring in the work shed,
whereas most units have installed
bamboo poles as bases to support a
tin roof. The raw material and finished
goods are also stored together in the
working area which gets crammed.
The cluster villages have irregular

power supply and there are frequent
power cuts about 2-3 times a day.
Electricity is consumed primarily for Figure 43: Infrastructure of household units
lighting and using specific electric tools
like a circular saw, polishing, and sanding machine. The units are running their crafting activity on
domestic load line and the average monthly electricity consumption is around INR 500-700.
The cluster village has a common facility centre spread across 2400 square feet; however, there is no
proper management to manage the expenses on power consumption and consumables. The CFC has
a wide variety of bamboo processing machines and tools, which the nearby dwellers initially used for
72
processing the bamboo poles, but over time due to non-payment of electricity bills by the artisans, the
connection has been suspended by the electricity board.
Figure 44: CFC present in the cluster
5.12 Status of previous interventions

The details of the previous intervention taken in the cluster are as follows:
► Training on New Design Tools, Small Technologies, Treatment and Finishes in Bamboo Craft
conducted by Industrial Design Centre, IIT Bombay. This event was organized by the local NGO
“Aanchalik Gram Unnayan Parishad” in the year 2004-05 in the Raipur village. This training
session was attended by majority of the cluster artisans who were trained on the treatment of
bamboo by using boric powder and the use of portable tools like cutting, slicing machine for pre-
processing of bamboo poles.
► The first major intervention that took place in the cluster was around 2006-07 when KVIC as the
Nodal Agency, IIE Guwahati as the Technical Agency and Aanchalik Gram Unnayan Parishad
as the Implementing Agency implemented the SFURTI intervention in the cluster. Due to this
intervention major changes were observed in their product line as they started producing a wide
variety of products like bamboo mats, VIP Sofa, Bamboo Furniture Set, Lamp shades, Pen
Stands, Baskets, Trays, Wall Decorative etc. KVIC empanelled designers were invited to
conduct design training, IIE aided in conducting training program on modern tools and
technologies to ease the production process. The IA assisted in construction of the CFC where
the artisans were trained on both modern technologies, design intervention that helped in the
skilling of the artisans and built capacities in production. The IA helped in identifying prospective
suppliers of raw material and in collaboration with IIE established market linkage with other
states by participating in various trade fairs and exhibition across the country to promote the
cluster product. Some of the major exhibitions participated by the cluster artisans includes the
International Trade Fair conducted by IIT Delhi in Pragati Maidan around 2009-10. The IA also
helped in getting credit linkage to the cluster artisans by inviting AGVB Simlaguri Branch to avail
180 cluster artisans with credit card loan to the tune of INR 25,000. The IA also made travel
and accommodation arrangements for the cluster artisans in collaboration with KVIC and DICC
Barpeta for participating in international trade fair and exhibition in Cairo and China around
2010-11.
► During 2010-11, the IA arranged Training on New Design Tools, Small Technologies, Treatment
and Finishes in Bamboo Craft conducted by Industrial Design Centre, IIT Bombay. This event
was organized by the local NGO “ Aanchalik Gram Unnayan Parishad” in the year 2004-05 in
the Balabhita region around 2km from the cluster. This training session was attended by the
73
micro unit owners who were trained on the treatment of bamboo by using boric powder and the
use of portable tools like cutting, slicing machine for pre-processing of bamboo poles.
► Around 2012-13, the IA invited the Bosch dealers from Guwahati to organize a sales meet where
the cluster artisans were informed about several portable electric machine that are used for
bamboo crafting. Some of the unit owners purchased machine like circular saw, hand drills,
polishing machine etc.
► Around 2015-16, the IA invited NID Ahmedabad to provide a design training on new product
and contemporary designs. In this training, the subject matter expert taught the art of adding
value to the processed bamboo by burning the poles in a gas stove to give it a reddish black
hue thereby enhancing its aesthetic and market value. Thus, the cluster artisans started using
this method to naturally colour their product.
► The CDE appointed during the SFURTI intervention also helps in promoting and selling the
cluster products by participating in national trade fair across the country. The arrangements for
such visits were by DC Handicraft of the region. Recently, the CDE has participated in the
SARAS fair conducted by DRDA and the assistance in terms of travel arrangement and booth
expense was given by the DC Handicraft and the Chakchaka Block Development Board.
74
5.13 Present cluster map
Figure 45: Present cluster map
Diagnostic Study Report of Chakchaka Bamboo Cluster, Barpeta 75

06
Need assessment
and gap analysis

Need assessment and gap analysis
6.1 Need assessment
A need assessment has been undertaken on the bases of the as-is assessment and baseline study
conducted for the cluster. Various analytical tools have been used to capture specific challenges,
needs and gaps prevalent in the cluster including value chain analysis has, SWOT analysis, Who
Does Who Pays Matrix (WDWP), co-operation matrix, analysis of business operations etc.
6.1.1 Value chain analysis – operations
The table below shows the value chain analysis of a “VIP SOFA” set.
Table 15: Value Chain Analysis of VIP SOFA Set
Value Percentage
Cost break-up Per
Activity Addition of the total
(Calculation) Unit
(INR) cost %
Raw Material
4.2%
Bamboo Poles
INR 700 per pole 700
(Raja Baah)
Per Pole average cost INR 3%
500
Transport Cost via DI
(10 poles in a DI Truck at 500
Trucks
INR 7000 for a distance of
70km)
0.3%
Carriage plus labour cost Average Thela and Labour
Charge of INR 50 for each 50
to Individual Units
pole
6%
Labour Charge for INR 250 per week for 1000

Cutting, Seasoning and unskilled labour for four
Treatment weeks. 1 Piece
0.1%
Boric Powder Treatment Approx. 20gm @INR 10 10
Cutting, Slicing and 2 Skilled Artisans @ 3500 41.8%
7000
Designing Charges per piece
23.9%
2 Skilled Artisans @ 2000 4000
per piece
Jointing and Weaving 2.4%
Cane Strips approx. 400
20pcs@INR20
Product Finishing 2 Skilled Artisans @ 1500 17.9%
3000
Charges per piece
Chemical Treatment 0.2%
Approx. 50mL 30
(USTAD)
0.1%
Varnishing plus Polishing Approx. 10mL 20
0.1%
Consumables Sandpaper, Fevicol, Nails 20

100%
Total production cost 16,730
Profit margin 49%
Sale value at unit 25,000
On interaction with the cluster artisans, it was observed for making a “VIP SOFA” Set having a centre
table with three pieces of adjoining sofa , there is a requirement of 1 Bamboo Pole of approximate
length of 100 feet procured from the nearby areas of Bhutan Border. The procurement cost is around
INR 700 for each pole and the transport cost to the cluster along with carriage and labour charges for
transporting the pole to the unit is around INR 550. The poles are then seasoned and then treated with
boric powder followed by sun drying for 14-20 days by the unskilled labour which is around 6% of the
total production cost. The seasoned bamboo poles are then used by the artisans for cutting and slicing
into the required product profile. The artisans, on an average, earn about INR 6,000-8,000 for making
the sofa set. Thus, the cluster units earn a profit margin of around 49% from the sales proceeds of
“VIP SOFA” Set.
The value chain analysis of Lamp Shades is shown below:
Table 16: Value Chain Analysis of Lamp Shade
Value Percentage
Cost break-up
Activity Per Unit Addition of the total
(Calculation)
(INR) cost %
Raw Material
INR 270 per pole 6.3%

Bamboo Poles
(Around 3 Lamp Shades 90
(Bulka Baah) from 1 Pole)
3.5%
Carriage plus labour Average Thela and Labour
cost to Individual Units
pole
3.5%
Labour Charge for 50

INR 25 per week for
Cutting, Seasoning and
unskilled labour for 2 weeks.
Treatment
Boric Powder 0.3%
Approx. 10gm @INR 5 5
Treatment 1 Piece
Cutting, Slicing and 2 Skilled Artisan @ 250 per 34.9%
500
Designing Charges piece
7%
1 Skilled Artisan @ 100 per 100
piece
Jointing and Weaving 14%
Cane Strips approx. 10 pcs 200
@INR 20
Product Finishing 1 Skilled Artisan @ 400 per 27.9%
400
Charges piece
Chemical Treatment 1.4%
Approx. 20mL 20
(USTAD)
Varnishing plus 0.7%
Approx. 2mL 10
Polishing
0.6%

100%
Total production cost 1433
Profit margin 40%
Sale value at unit 2,000
On interaction with the cluster artisans, it was observed for making a lamp shade; bamboo poles are
locally procured and from a single pole of average length of 40feet, around three lamp shades are
made. These poles are transported by a cart to the cluster units and the cost of transportation along
with labour charge is around INR 50 for each pole. The poles are then seasoned and then treated with
boric powder followed by sun drying for 7-10 days by the unskilled labour for which they charge
around INR 50. The seasoned bamboo poles are then used by the artisans for cutting and slicing into
the required product profile. The artisans, on an average, earn about INR 700-800 for making a lamp
shade. Thus, the cluster units earn a profit margin of around 40% from the sales proceeds of a lamp
shade.
The Value Chain analysis of Bamboo Bottle is shown below
Table 17: Value Chain Analysis of Bamboo Bottle
Percen
Value tage of
Activity Cost break-up (Calculation) Per Unit Addition the
(INR) total
cost %
Raw Material
8%
Bamboo Poles INR 100 per pole
( Approx. 5 Bottle per Pole) 20
(Bulka Baah)
20%
Carriage plus labour Cost Average Thela and Labour
to Individual Units
pole
8%
Labour Charge for Cutting, INR 20 per week for unskilled 20

Seasoning and Treatment labour for 1 week.
2%
Boric Powder Treatment Approx. 10gm @INR 5 5
Cutting, Slicing and 1 Skilled Artisan @ 40 per 1 Piece 8%
20
Designing Charges piece
4%
1 Skilled Artisan @ 20 per 10
piece
Jointing and Weaving 2%
Cane Strips approx. 1 pcs 5
@INR 5
1 Skilled Artisan @ 40 per 8%
Product Finishing Charges 20
piece
Chemical Treatment 3%
Approx. 5mL 8
(USTAD)
3%
Varnishing plus Polishing Approx. 2mL 8
4%

Total production cost 176 100%
Profit margin 42%
Sale value at unit 250
On interaction with the cluster artisans, it was observed for making a bamboo bottle; bamboo poles
are locally procured and from a single pole of average length of 30feet, around five bottles are made.
This pole transported by a cart to the cluster units and the cost of transportation along with labour
charge is around INR50 for each pole. The poles are then seasoned and then treated with boric
powder followed by sun drying for 4-5days by the unskilled labour for which they charge around
INR20. The seasoned bamboo poles are then used by the artisans for cutting and slicing into the
required product profile. The artisans, on an average, earn about INR 80-100 for making a bamboo
bottle. Thus, the cluster units earn a profit margin of around 42% from the sales proceeds of a lamp
shade.
6.1.2 Who Does Who Pays Matrix
Table 18: WDWP Matrix
Services Who does Who pays Payment Mechanism
► Aggregators/ ► Direct by the

Cluster Units Aggregators/ KVIC/ aggregators
Market development
► NGO DICC / DC Handicraft ► Indirect by
► CDE government body
Raw Material Cluster Units

Local Suppliers ► Direct
Supply Household Artisans
Locally available in Cash paid by unit ► Direct

Labour supply
the cluster owners
Product IIT-B / NID NGO ► Indirect

Development
Capacity Building IIE / KVIC / NGO Government Agency ► Indirect
Banks, DIC and DC Credit Support via ► Indirect

Financial Support
Handicraft Govt. Schemes
Business Development service providers across major business segments were identified to understand
who pays for their services. Some BDS providers offer services which are fully subsidized while others
are borne by the MSME units. The table indicates for raw material supply, labour supply, the units pay
directly.
It was observed that major interventions are through government schemes and schemes of the
implementing agencies. The role of FIs is limited. Though support has been received to some extent, it
is fragmented. There is a need for integration of support structure.
6.1.3 Cooperation Matrix

The current institutional matrix depicts the relationship among the various stakeholders in the cluster.
The nature of relationship between the cluster actors is not always very clear and direct. Based on the
role of these various support institutions, associations and strength of their inter-linkages and
cooperation, they are given a full point scale. The score ‘1’ indicates there is very weak linkage

between these cluster actors while score ‘5’ indicates there is a strong inter-linkage between the
cluster actors. This cooperation may be expressed in terms of joint planning, purchase of raw material,
solving other’s problems, organizing seminars, using services of transports etc.
A strong relationship and inter-linkage among the stakeholders can not only solve problems of the
cluster but also could source technology, finance, and marketing etc. for overall growth of the cluster.
It is therefore necessary that interlinking among the stakeholders be strengthened by organizing
meetings and motivating each other. It is also necessary that relationship between individual
enterprises be strengthened for success of the cluster.
The present status of cooperation among the stakeholders shows that there is little intervention going
on at present, though some initial interventions as mentioned have been done. It is noticed that there
is lack of joint intervention by different agencies, which otherwise could have made a greater impact.
The cooperation matrix is as presented in the table the higher the score the higher is the cooperation.
The present status of cooperation among the stakeholders shows that there is little intervention going
on at present. The cooperation matrix is as presented:

Table 19: Cooperation Matrix
Buyers
Raw Equipment
Cluster IIT/ DC FI/ Local Local from MSME- Local
Stakeholder IIE DICC Material
Units NID Handicraft Banks Transporters Suppliers Retailers other DI NGO
Suppliers
States
Cluster Units 2 2 4 4 2 5 4 3 5 5 3 5
IIE 2 4 4 4 3 0 0 0 0 0 4 2
IIT/ NID 2 4 3 3 3 0 0 0 0 0 4 2
DICC 4 4 3 3 3 0 0 0 0 0 5 3
DC Handicraft 4 4 3 3 3 0 0 0 0 0 3 3
Financial
2 3 3 3 3 0 0 0 0 0 3 3
Institutions
Raw Material
5 0 0 0 0 0 0 0 0 0 0 1
Suppliers
Local
4 0 0 0 0 0 0 0 0 0 1 1
Transporters
Equipment
3 0 0 0 0 0 0 0 0 0 1 1
Suppliers
Local
5 0 0 0 0 0 0 0 0 0 2 2
Retailers
Buyers from
5 0 0 0 0 0 0 0 0 0 2 3
Other States
MSME-DI 3 4 4 5 3 3 0 1 1 2 0 1
Local NGO 5 2 2 3 3 3 1 1 1 2 3 1

6.1.4 Analysis of Business Operations
This section analyses various challenges and issues pertaining to the business operations carried out
by MSMEs in the cluster. Analysis of business operations are below:
Table 20: AOBO of the Cluster
Present Status Challenges

► Procure from local market and ► Artisans cannot procure high
Raw Materials
traders supplying in the villages volumes
► Premium quality bamboo poles ► No storage facility
are procured from border areas ► Cannot take bulk orders due to non-
near Bhutan availability of funds
► Transportation cost is high for
premium quality poles
► Chemical treatment is done to ► Treatment facility needs to be
Process
enhance bamboo longevity improved.
► Sun drying is done to increase ► Sun drying is a time-consuming
durability process
► Treatment process is traditional ► Poles contracts and shrink on sun
and takes 10-14 Days to treat drying
the bamboo poles thereby ►
increasing production cycle
► Minimal infrastructure in every ► Lack of proper work-shed in the
Infrastructure
household household.
► CFC is not utilized by the ► No storage space for raw material
artisans to its full capacity ► No personnel to look after the
► No electrification in the CFC maintenance of the CFC
► No technology to utilise the ► Artisans reluctant to visit the CFC
peeled skin to make utility due to inconvenience to transport
products. raw material to the CFC
► Traditional tool for cutting and ► Uniformity in quality and design

Technology
slicing of bamboo leads to cannot be maintained as all are
wastage of around 30% handcrafted
► Limited knowledge on the use ► Wastage of materials due to use of
of modern tools and equipment. hand tools.
► Machineries in the CFC ► Technology up-gradation is
requires servicing required
► No spare parts available for ► Specific spare parts of the available
machines in CFC machine in the CFC not locally
available in the cluster
► Majority of the cluster artisans are
not trained on the use of modern
machineries.
► Main product is household ► Product diversification is limited.
Product
utilities and decorative items ► Household artisans implement little
which are produced by 100% of or no design variation
the artisans in varying scales. ► Majority of the cluster artisans have
► Sofa sets are the major high no knowledge regarding the design
value items which are produced trends in the bamboo segment
mainly by the micro units ► VIP Sofa and other high-end
furniture not made by household
units
► Aggregators buy products from ► Household artisans have limited
Marketing
the units mostly and sell to access to market and rely mostly on
other regions. the micro units for product sales.

► Unit owners participate in trade ►
fairs and exhibition with support ► Price competition for similar
of the local NGO products among units.
► No product showroom in the ►
cluster. ► Lower margins for higher value
► CDE procures product from the products
artisans and sell in trade fairs ►
and expos
► No quality checking of the raw ► Developing means to assess quality
Testing /
material procured of raw material procured.
Certification
► No quality checks are done for ► No such certification / testing
the finished product. agency or authority in the district.
► Return products are discarded ► Need to check the tensile strength,
and its parts are not durability and potential to resist
disassembled to be used later. abrasion in finished products
►
► Peeled bamboo skin and ► Transforming waste material as a
Environment and
unused raw material is burnt in bio fertilizer or floor laminates.
Artisan Welfare
open. ► Majority of artisans are not aware of
► Use of chemicals for treatment the banking system and
releases no harmful effluents. procedures.
► No proper garbage disposal ► Majority of the household artisans
system don’t possess KYC documents.
► No proper sanitation facility in ► No awareness regarding
the units. government welfare scheme and
► No medical, health and benefits.
insurance benefits to the
artisans
6.1.4.1 Raw Material

The quality and supply of raw material available within the cluster is adequate and there are several
traders supplying it to the cluster artisans. The primary raw material procured is raw bamboo poles of
different varieties from different traders. The cluster artisans also use cane strands for joining and
weaving purpose, and it is purchased in small quantities.
During the cluster visit, following points were observed regarding the procurement and usage of
bamboo.
► The price of the bamboo poles is mainly determined by the local suppliers, so the cost of
procurement is high
► No credit to the units or artisans is given by the suppliers.
► Due to the low margins earned from the sale proceeds, household artisans rely on the micro
unit owners to avail them with bamboo poles for the crafting process.
► Post pandemic, due to unavailability of labour, a drop in the supply of bamboo is observed in
the local market
► The higher priced bamboo poles are procured by the units, while the household units
purchase the low-priced poles for making utility products like trays, baskets, pen stands , hair
clips etc.
► Storage of the raw material procured is an issue observed throughout the cluster as raw
material stock is required to meet orders given by the clients. Without proper storage facilities,
over time 10-15% of the bamboo pole becomes infested with fungus or termites, thereby
causing wastage. Moreover, during the rainy season, due to lack of proper storage, bamboo
poles get infected by fungus
► High moisture content in bamboo causes cracks when sun dried which is a problem especially
during the rainy season

► Not all household artisans have a proper treatment tank in their premises, so they rely on the
units and purchase well treated and chopped poles. At times some units have created
treatment tanks in their homes without much knowledge of the proper infrastructure required
to treat bamboo. This also reduces the workspace of the household artisans. Moreover, due
to lack of proper bamboo treatment facilities, production time increases substantially.
6.1.4.2 Production/ Technology

Most of the cluster artisans are using conventional/traditional technology for activities such as cutting,
slicing, etc. The production process is mainly done on traditional equipment such as, big knife, small
knife, power operated cross cutting hand tool, hand drill, hand grinder, brush, screwdriver, curved
chisel, file, hammer, hand saw, clamp, cutting pliers, are used by artisans for making craft items and
furniture products. Negligible technology development has taken place in the cluster and even though
the CFC has been set up, its use is minimum. The production process for various items is as given
below:
Bamboo furniture: Cross cutting, treatment with chemicals, drying, peeling of upper surface, split
making, drilling, cutting into required sizes and fixing with nails, sanding, accessory fitting, cane
binding, making surface design with blow lamps, surface finishing with varnish.
Lampshades: Cross cutting, treatment with chemicals, peeling of upper surface, split making, sliver
making, weaving, drilling, cutting into required sizes and fixing with nails or adhesive, sanding, cane
binding, surface finishing with varnish, electrical fittings.
Tray: Cross cutting, peeling of upper surface, split making, sliver making, thin split making, colouring
of sliver with chemicals, weaving, cane binding, drilling, fixing with adhesives, making surface design
with blow lamps, surface finish with wood finish chemicals
Pen Stand: Cross cutting, peeling of upper surface, split making, thin split making, drilling, fixing with
adhesives, making surface design with blow lamps, and surface finish with wood finish chemicals
Handcrafted decorative items: Cross cutting, peeling of upper surface, split making, cutting the split
into smaller pieces, cane binding, fixing with adhesives, making surface design with blow lamps,
surface finish with wood finish chemicals, drawing with acrylic paint etc
It has been noticed that pre-processing operations take nearly 55-60% of the production time including
cross cutting, peeling, splitting, slicing, cross cutting, treatment of bamboo with chemicals, drying etc.
About 25-30% of the production time is spent on making or weaving the bamboo product while only
10-15% time is spent providing on final finishing and packaging.
Issues:
► The cluster artisans used handheld tools like hacksaw, hammers, pliers and bill hook etc. for
cutting, slicing and peeling of bamboo poles which leads to creation of rough edges. Due to the
absence of proper finishing tools like sanding machines in the households, it hinders the quality
of finished products. Further, some household artisans use hand drills, but the design and
finishing stages are purely manual with no level of mechanization. There is no advanced and
modern technology used for cutting, slicing and designing with the household artisans.
► Currently the cluster artisans are not able to make use of the peeled skin of the bamboo to make
utility products like disposable plates, bio fertilizers, floor laminates due to the absence of training
on such technologies.
► Machines and equipment in the cluster have not been used by the artisans for a long time and
require proper servicing before they can be operated.
► The artisans could use different parts of the bamboo pole for making different bamboo products
with the right technology.
► There is no uniformity in quality as all products are made using hand tools by the household
artisans.

6.1.4.3 Product Design
The artisans of the cluster are skilled in replicating designs of products sent to them by their clients via
WhatsApp. However, due to lack of skill training of the artisans, units are manufacturing a limited
range of products. Although the products of the cluster have a steady demand in the local market and
other states, in the long run, the units need to diversify the product range to maintain a competitive
advantage. In the handicraft industry, consumer preferences and tastes regarding the product
designs are very dynamic and changes rapidly. Therefore, it is essential to up-skill the artisans as per
the latest market designs and trends.
The cluster products have a wide market across the country but there is little diversification in range
and variety. This may lead to a problem soon.
► Lack of awareness of latest market designs and customer preferences.
► Since all products are hand made with conventional tools, there is variation in designs and
finishing of the products. This is one of the reasons for lack of exports from the cluster
► The unit owners participate in trade fairs and exhibition to establish new contact with clients and
design products according the desired customization required by the clients. However only a few
big units participate while remaining cluster artisans do not attend
► There is also price competition among the unit owners as to capture the clients by providing
products at lower rates leading to frequent disputes amongst them.
► There is an ardent need to provide design interventions to the household artisans as they have
no direct access to larger markets and rely on the training, they get from the unit owners in
making the product.
6.1.4.4 Infrastructure availability in the cluster
The cluster units have set up their work sheds in their household premises using bamboo poles
supporting a tin roof. Only a handful of units have a concrete base to do the crafting work. A typical
unit spans 40-50 square feet and holds workspace, storage room, tool room to use the cutting and
slicing machine and a concrete treatment tank with a moderate bathtub to treat bamboo poles. This
decreases the mobility, efficiency, and productivity of labour and reduces the stakeholder involvement
required for the cluster's growth.
Figure 46: Infrastructure within the cluster units
The household artisans, on the other hand, have minimum infrastructure and either do the crafting
work in their household or in the open roads inside the cluster.

Figure 47: Infrastructure for Household Artisans
The CFC is constructed over an area of 2,400 square feet; however it observes hardly any footfall
from the unit owners who were trained by IIE Guwahati during the SFURTI Intervention in 2006-07.
The reason being the CFC is constructed at a distance of around 800 m to 1km to unit owner’s
household and commuting to the CFC along with bamboo poles requires an additional cost of
transportation and labour charge to process the bamboo for the entire day. Unit owners prefer to
procure the bamboo poles their premises and work on it according to their convenience. The artisans
who dwell nearby to the CFC use the facilities at a minimal level as they are well skilled in using the
machines installed.
Figure 48: CFC Infrastructure in the Cluster
It was also observed that neither the unit owners nor the household artisans are interested in taking up
the management of the CFC. The CFC was previously managed by the local NGO “Anchalik Gram
Unnayan Parishad”, but over time due to the absence of any support from government agencies, the
NGO stopped the maintenance of the CFC.
The cluster villages have irregular power supply and there are frequent power cuts about 2-3 times a
day. Electricity is consumed primarily for lighting and using specific electric tools like a circular saw,

polishing, and sanding machine. The units are running their crafting activity on domestic load line and
the average monthly electricity consumption is around INR 500-700. Moreover, due to non-payment of
electrical dues, the connection of the CFC has been suspended by the local electricity board.
During the field visit to the CFC, it was observed that most of the machines installed have developed a
coating of iron rust over the body and would require servicing and replacement of parts before being
operated at a full scale.
6.1.4.5 Marketing of the Products
Although the products are popular in the market, the artisans have not been able to capture new
markets as the marketing of the products is primarily done by the aggregators of the cluster without
proper training and support from other organizations.
Although the unit owners participate in the trade fairs and exhibitions, it does not improve the condition
of the cluster as these unit owners are competing amongst themselves to establish contact with more
bulk purchasers and capture the existing and new markets.
Moreover, the artisans get lower margins by the product sales, as there is a lack of adequate logistics
or supply chain framework within the cluster. There are intermediaries like agents/dealers who charge
commission for selling the products. Although the aggregators sell the product of the individual
artisans, they deduct their charges and then pay the household artisans. Thus, without support
institutes like CBTC, EPCH, IIE, DICC and MSME-DI, it would not be possible for the artisans to
explore a new market and increase margins from product sales.
At present, there are no well-established marketing policies and strategies implemented for product
promotion and sales. The CDE also procures the artisan’s products and sells them in fairs and
exhibition, but the margins are very less to the artisans for the product sold. The CDE has sold several
items in international fairs conducted in China, Singapore and Malaysia. The DICC made the travel
and stall installation arrangements in collaboration with DC Handicraft and the Block Development
Officer of the region. However, as the artisans do not have proper KYC documents, it isn't easy to
make such arrangements for the government agencies of the region
Thus, without proper branding and marketing of the product, it would be difficult for the artisans to
explore and connect with newer markets. The current infrastructure and marketing support facility is
minimal, with no provision to showcase the cluster's products.
Furthermore, due to lack of proper bamboo treatment facilities, bamboo get infected which affects the
sale of the products adversely.
6.1.4.6 Environment, Occupational health and Safety

Around 30% of the raw material is wasted during the cutting and slicing of bamboo poles. This
wastage is mainly due to traditional tools used in the production process. There is no proper disposal
mechanism of the raw material wastage generated during the initial stages of production. The raw
material that is wasted or cannot be used is burnt in the open, causing air pollution. These pollutants
released into the environment, in the long run, would affect the health of the artisans primarily of the
children. The heavy smoke released from the burning of cane consists of carbon monoxide, carbon
dioxide, sulphur oxides, and nitrogen oxides, which may cause health hazards to the cluster's residents
and the surrounding regions. Thus, there is a need for imparting capacity development for undertaking
sustainable business practices.
6.1.5 Value chain analysis – Financial

Institutional Credit Delivery
The financial value chain analysis has been done to understand the stages involved in the loan
disbursal process and the key issues with the loan processing process.

Selecting the
Eligibility
bank for Need Identification of
criteria of
favourable assessment of the desired
the selected
offerings ( 2-3 the applicant product
product
days)
Document KYC Current assets

Evaluating the
collection (10-15 verification of and liabilities of
CIBIL score
days) the applicant the applicant
Submission of Major Marketability Financial Assessment

Feasibility
project report (7- stakeholder of the projections of risk
report
8days) involved product analysis involved
Applicants
Document are informed Final
verification regarding the scrutiny of
(7-8 days) shortcomings documents
in the report
Assessment of
completed
documents ( 5 -7
days)
Establishment
of credit
eligibility (3-5
days)
Loan approval
( 2-7 days)
Loan disbursal
( 2-7 days)
Figure 49: Financial Value Chain Analysis
From the above figure, it is evident that it takes around 45-60 days to approve loan from banks. Banks
consume maximum time in collecting necessary documents, physical verification of collateral and
assessment of creditworthiness of the applicant. Most of the unit’s face challenges related to
documentation requirements since the document filing process is very complex and lengthy. Without
proper documents, banks cannot assess the credit worthiness of units and evaluate so many
documents, making it a high-cost affair for banks. Due to this, generally banks are reluctant to provide
loans to micro units considering high acquisition cost compared to the business generated by micro
units for banks. Hence, micro units are either not able to get the loan approved or the banks approve
only a certain percentage of the total requirement.
Following are the insights of the survey conducted to identify the various issues faced by the
stakeholder to avail credit facility.
Barriers to lending:
Bank loan products:
► Most of the units in the cluster require credit predominantly for working capital. However,
banks are hesitant to provide funding primarily due to the fear of default.

► Banks provide both government schemes as well as bank schemes. However, banks in the
cluster are unwilling to provide loans through a government scheme as it involves subsidy or
tax rebate.
Documentation and collateral requirement:
► Absence of proper financial statements and other documentation related to business
operations such as inventory record, raw material purchase etc. are a major concern
for micro level firms which hinders in availing credit from formal sources
Time consuming process:

► Bank loan products: Most of the units find the process of availing loans from
banks lengthy and cumbersome. As seen from the financial value chain analysis, it
takes around 1.5- 2 months to obtain a loan from the bank. The maximum time is
spent by banks in collecting necessary documents and conducting physical
verification of collateral.
On interaction with the IA, it was learnt that back in 2009-10, the agency helped around 180 cluster
artisans and unit owners get credit card loan from Assam Gramin Vikas Bank with a credit limit of INR
25,000, however a decade has passed and several circulars and notices from the bank have been
sent to the cluster artisans, but no positive response and willingness to return the credit provided is
seen among the unit owners and artisans.
On interaction with the Bank of India officials, it was noted that beside the risk of credit default, the
other reason for non-approval of loans for the cluster is the lack of a presentable project report to
demonstrate the usage of funds provided and the current suitable business plan.
Thus, the artisans take loans from the friends and relatives to manage their working capital
requirement for purchasing raw material. A few retailers in the market also provide personal loans
amounting up to INR 50,000 to the artisans without the need for documents at a higher rate of 5-10%
per month.
The current source of finance to the artisans is expressed by a chart as follows. The chart displays a
lack of institutional sources of finance.
60%
55%
50%
40%
30%
30%
20%
20%
10%
0%
Cash From Sales Friends and Realtives Money Lenders
Friends and Relatives
Figure 50: Current Source of Finance for Cluster Artisans
The reasons for preferring the informal sources for procuring credit rather than the FI among the
artisans are as follows

Previous credit
default by some
individual of the
region, 30% Reluctancy
of Bank
Authorities,
35%
Only Option
Available to
meet demand, Rigid Loan
25% Documentation
Process in
Bank, 55%
Faster disbursal Requirement of

process among Project Report,
the local 15%
lenders, 40%
Friends and Relatives do not
charge interest, 65%
Figure 51: Reasons for Procuring Informal Source of Finance
Moreover, the banks do not have any scheme or policies to provide financial assistance to these units.
The following are the various observations related to access of finance in the cluster:
► The source of finance is either retained earnings of the firm or loans and advances obtained
from the local lenders or friends and relatives.
► There is always a shortage of working capital for procuring an adequate amount of raw
material. Thus, bulk orders from the market cannot be processed by these units.
► Unavailability of proper record regarding the source and use of finance
► Besides these three banks, there is a lack of MFIs or NBFCs operational in the cluster
6.1.6 Credit gap assessment

Estimation of current demand for credit
Credit demand in the is primarily for working capital. The working capital requirement for a three-month
period is calculated considering the cluster units who are involved in the activity. For calculating working
capital, the raw material required for each product, the number of days required to complete a product
with involvement of two persons is considered.
Table 21: Working Capital Estimates
Unit Type Particulars Working capital
Units producing Sofa set 9 sofa sets 80,730/-
Units producing Arm Chair 75 nos 53,250/-

Units producing Misc. household
85 working days 73,950/-
utilities and decorative items
Total working Capital 2,35.410/-
Table 22: Working Capital Requirement
Total WC
requirement
S No Particulars Amount Required Villages HH INR
Raipur 180 1,33,11,000
Rs. 73,950 per unit Bhaluki 50 36,97,500

Working capital for a
1. period of 3 months on the average
Joshihatigaon 15 1109250
Dhupguri 5 369750
Credit gap can be defined as unfulfilled credit requirement of MSMEs, other than the available access
to the credit from formal institutional sources of finance such as banks.
Credit demand estimation
Credit demand is defined as capital required for running the business – both for carrying out daily
operation as well as in the longer term. The need for credit in case of MSEs arises from the following
activities conducted by them
Sources of credit demand
Credit demand for MSEs is broadly divided into two parts viz. working capital and term capital
demand.
Working capital is primarily demanded by units in the cluster. Working capital is required for managing
day to day business operations m raw material procurement etc. Term capital is required for procuring
modern machinery and infrastructure improvement. The major sources for credit demand are
explained below:

90%
80%
80%
70% 65%
60%
50%
50%
40%
30%
30%
20%
10%
0%
Working Capital Loan Raw Material Personal Loans for Procuring Modern
Procurement Infrastructure Machineries
Improvement
Figure 52: Sources of Credit Demand
Thus, it is observed based on interaction with the cluster units, the major requirement for credit within
the cluster is for working capital loan which is required for maintaining the day-to-day business
operations like payment to skilled and daily wage earners, payment to the transporters etc. In addition
to this, a major part of working capital requirement is for procuring raw material so that the business
cycle is not stalled due to unavailability of raw material.
Credit demand:
A detailed demand side analysis to assess credit requirements of the cluster units has been
summarized below:
Table 23: Credit Demand in the Cluster
S. No Criteria Details Unit
Total Number of Units Surveyed 12 Nos.
1. Micro Units 5 Nos.
Micro Household Units 7 Nos.
2. Estimated Turnover of the Surveyed Units for FY2019-20 1.36 Crore INR
Total Number of Units in the Cluster 260 Nos.
3. Micro Units 10 Nos.
Estimated Cluster Turnover (extrapolated using total units in the

4. 3.12 Crore INR
cluster) for FY2020

Average Turnover of the ten micro units is INR 16.2Lakhs and
that of the seven household units surveyed is INR 0.6Lakhs
Average growth in Index of Industrial Production (IIP) for the

5. 4.2 %
Industry19
6. Average growth in turnover of Surveyed Units for the last 2 years 3 %
7. Estimated Cluster Turnover for FY2021 (based on 5) 3.25 Crore INR
Working Capital Demand Estimation for the cluster

8. 0.65 Crore INR
(Approximately 20% of cluster turnover)
Estimated Investment in Plant & Machinery of Surveyed Units -

9. 3.13 Lakhs INR
FY2020
Estimated Investment in Plant & Machinery of Surveyed Units -

10. 3.06 Lakhs INR
FY2019
Estimated Investment in Plant & Machinery of Cluster (based on

11. 22.5 Lakhs INR
total units in cluster)-FY2020
12. Growth rate in Investment in Plant & Machinery in the cluster 1.2 %
Forecast of Investment in P&M -FY2021 (based on 12 &growth

13. 22.77 Lakhs INR
rate of fixed Investment)
14 Term Credit Requirement (difference of P&M in FY2021 FY2020) 27000 INR
Term Credit Funding Requirement (80% of Term credit

15o. 21,600 INR
requirement)
Total Credit Demand (WC Demand + Term Credit Demand: 8 Lakhs

15 65.22
+ 14) INR
There are 260 units in the cluster. To estimate the cluster turnover the number of units is multiplied with
its estimated turnover. The estimated growth rate of cluster is 3% as discussed with stakeholders. The
cluster turnover is multiplied with this growth rate. This gives the expected increase in cluster turnover
in 2020-21.
As per the Nayak Committee guidelines for working capital loan, it is expected that working capital
requirement is 20% of the total turnover of the year. Therefore, 20% of the expected turnover of 2020-
21 gives working capital requirement for 2020-21. The Working Capital Demand Estimation for the
cluster is estimated to INR 65 lakhs.
The total investment in plant and machinery for different enterprises in 2019-20 is estimated based on
discussion with stakeholders. Investment in plant and machinery by the units in the cluster is INR 22.5
Lakhs
As per the discussions with cluster stakeholder there has been a 3% growth in the cluster in the last 2
years and the amount of total investment in plant and machinery for the year 2020-21 is approximately
INR 22.77lakhs. Therefore, the difference in plant and machinery is INR27,000.
The total estimated demand based on 80% term credit requirement for all the units in the cluster is INR
21,600. These represent the term credit required for existing tools and equipment in the cluster. Up-
gradation of machineries will require significant finance.
19
National IIP for manufacturing of handicraft for 2020-21

The total credit demand in the cluster including working capital demand and term credit demand is INR
65.22 Lakhs.
Credit supply
The units currently do not avail any loans from any financial institutions for capital expenditure or
working capital requirements. Units fulfil their financing related needs from their own financial
resources such as retained earnings, the amount obtained from sale proceeds or from informal
sources such as friends, relatives etc.
However, five micro units availed personal loan amounting to INR 1 lakh each in 2019-20 from the
various banks operating in the region. The units used the credit facility provided for procuring raw
materials and improvement of infrastructure and purchase of modern tools required for production in
the ratio 60:40 (working capital and term loan). Out of the availed credit, about 10% has been repaid
and rest amount is still outstanding. Based on the above data, an approximate credit supply for the
cluster is calculated as follows.
Table 24: Credit Supply available in the cluster

Total Number of Units in the Cluster 260 Nos.
1 Micro 10 Nos.
Estimated Outstanding Working Capital of the cluster for FY
2
2020-21 2.7 Lakhs INR
Estimated Outstanding Term Credit of the cluster for FY 2020-
3 Lakhs INR
21 1.8
Estimated Total Credit outstanding of the cluster for FY 2020-
4
21 4.5 Lakhs INR
5 State total advance growth rate (based on RBI BSR) 6 %
Estimated Credit Supply at the cluster (Based on 7 and 8, FY
6
2020-21) 4.77 Lakhs INR
7 Total Estimated Credit Supply for FY 2020-21 4.77 Lakhs INR
As seen from the above table, the total estimated outstanding Working Capital of the cluster for FY
2020-21 is INR 2.7 Lakhs and the estimated outstanding term credit of the cluster for FY 2020-21 is
INR 1.8 Lakhs. Therefore, the total credit outstanding of the cluster for FY 2020-21 is INR 4.5 Lakhs.
The state total advance growth rate (based on RBI BSR) is 6 %. Therefore, the estimated credit
supply at the cluster for FY 2020-21 is INR 4.77 Lakhs.
In addition to this, based on stakeholder interaction, almost all of the cluster units have availed
financial assistance from friends and relatives. The average amount obtained by each unit of the
cluster is roughly around INR 25,000. Thus, the overall lending procured from informal sources for the
250 units of the cluster is around INR 6.25 Lakhs.
Credit Gap
Thus detailed analysis of credit demand and supply indicates that the total credit demand of the
cluster is around INR 65.22 Lakhs considering the traditional tools and equipment’s and the available
supply from formal sources is about INR 4.77 Lakhs. Thus, the credit gap is INR 60.45 Lakhs, and the
available supply is only 7.3% of the total credit requirement of the cluster units.

6.1.7 SWOT
A SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of the Chakchaka Bamboo cluster at Assam has been carried out keeping in
mind the technology, marketing, product quality, skills, inputs, innovation, business environment and energy/environment compliance of the units. The
SWOT analysis is provided in the table below:
Table 25: SWOT Analysis
Current situation Future

Area
Strengths Weaknesses Opportunities Threats
► Handicraft products have ► Market is mainly dependent ► Easy access to digital ► Irregular bulk / wholesale
Market
a good market in almost on bulk purchasers and marketing and e-commerce order from outside cluster
all parts of the country intermediaries ► Product diversification can ► Better quality products from
► Arrangement for ► Lack of collective marketing lead to expansion of market other cluster areas could
participations in fairs and ► Branding of products is ► Intervention of Banks / FIs / pose a challenge
exhibitions gives good absent MFIs. to meet the growing
exposure market demand
► Ability to manufacture ► Export market potential
products as per the ► Create better awareness of
manufacturer’s government schemes .and
specifications regulations
► Some units create their
own designs and sell
these
► Availability of CFC ► Lack of capability in ► Adopt new technology with ► Non-up gradation of
Technology/
► Quality of product is understanding technical support from CBTC technology may lead to
Product satisfactory and has analysis vis-à-vis design ► Innovate new designs and creation of alternatives of the
Quality acceptability in the inputs products products that could flood and
market ► No innovation in technology ► Produce for export market capture the market
► Majority of the artisans is present which is affecting ► Increase in awareness of
have familiarity with the product quality people on quality
working of cutting, slicing ► Lack of standardization of certifications shall lead to
and splitting tools. products losing out to business /
► Use of obsolete implements requirement for more
takes longer time to produce
preventing artisans from
meeting the growing demand

Area
► Availability of skilled ► No skill development training ► Customized training ► Inability of the artisans to
Skill/
artisans and craftsman has been taken up of late programs on required skills meet the emerging demand
Manpower ► Inherited craftmanship ► Lack of interaction between (operations, soft skills etc.). if skill upgradation is not
► Skills acquired on-the-job SMEs and technical ► Engage technical institutes taken up
by all members of the institutes for providing for skill development ► Young generation from
family technical training. programs. skilled artisan family not
► Artisans are quick in ► Illiteracy among the artisans ► Availability of various skill taking interest in this craft
adapting to new design ► No mechanism to mobilize development and activity
► Cooperation among regional youth for training in upgradation programs
artisans and they help in the sector conducted by government
developing skill agencies
► Easy availability of raw ► No storage facility for raw ► Promotional steps by Govt. ► Increase in cost raw material
Raw material
materials. materials and so have to buy on cane and bamboo prices after COVID-10 and
and other ► Quality of raw material is in high prices ► Steady growth in domestic limited earnings of artisans
inputs good due to the agro ► The raw materials are demand. ► Unavailability of graded
climatic conditions of the procured from traders and ► Increasing awareness on mature raw material supply
region intermediaries commercial bamboo chain
► Buyers sometimes ► Poor work conditions of plantation ► Unavailability of bamboo
specify dealers from majority of the artisans resource mapping
whom they want ► Absence of commercial information
materials plantation of raw materials
as cane and bamboo
►
►
► Intervention of design ► Lack of education on design ► Product range can be ► Could lose business to more
Innovation
innovation done by NID & innovation & product increased price competitive artisans
BCDI development ► The traditional technology ► Imported machine/
► Generic design products can be improved equipment from China,
► Structured processes for Vietnam, Taiwan
information sharing among
Members in the cluster.
► Shift towards sustainable
resources at national level by

Area
limiting use of non-
sustainable product

6.2 Gap assessment
Based upon the diagnostic study and intense discussions with various cluster stakeholders the following
are the gaps identified in the cluster:
6.2.1 Non-financial gaps

Table 26: Key non- financial gaps of the cluster
S.No Area Gaps Identified
► Though raw material is available locally, the supply and price are
Raw Materials
dependent on the suppliers
► Lack of provision of bulk purchase which could reduce cost of
production
► Absence of storage facility to store bamboo
► Due to low margins, the household artisans are unable to procure
high quality bamboo poles.
► No credit facility is provided by the suppliers to the artisans while
1 purchasing the raw material
► Transportation of Raja Baah from Bhutan Border is high and is thus
procured in smaller quantities and used for higher-value products
like “VIP Sofa”
► High moisture content of bamboo causes it to crack when sun-
dried.
► Lack of proper bamboo treatment facilities increases the production
time substantially. Furthermore, they are unable to increase sales
due to poor quality of bamboo as it gets infected
► Lack of branding activities for expansion of market
Products
► Limited design patterns
► Same set of products are being produced since 2006-07 with little
2 or no variations.
► Lack of knowledge and awareness on value added products
► Lack of testing facilities. There is minimal quality check and testing
of products
► Usage of traditional and obsolete technology
Technology
► Minimal mechanisation in the production process of majority of
household units
3 ► Low utilization of CFC facilities and few of the machines in the CFC
needs repair
► Unawareness of recent trends in technology to make use of entire
bamboo pole.
► Cluster units are dependent on aggregators for marketing. Direct
Marketing
marketing is done only through trade fairs and expos.
► Product market limited to Assam and key Indian cities
4 ► No initiative undertaken for conducting buyer seller meets.
► Lack of product catalogue for marketing of the products
► Lack of knowledge of online marketing
► Lack of awareness of latest market trends
► Poor infrastructure
Infrastructure
► Unorganized way of manufacturing
► Work sheds of the artisans lack adequate infrastructure.
5
► Household artisans either work in their household premises or in
the open street adjacent to their premises.
► Lack of maintenance of the existing CFC by artisans
► Lack of formal training of the household artisans
6 Skills
► Lack of skills for quality check and testing facilities

► Lack of knowledge of using waste raw materials and discarded
products
► Lack of knowledge of using latest machines
► Waste and unused raw material are burnt in open
Environment
► No initiative undertaken to reduce carbon discharge caused due
7 to burning of waste
► No knowledge of recycling the bamboo waste as biofertilizers and
floor laminates
► Artisans are not enrolled under ESI, Insurance Schemes.
Social Security
► No health Camps conducted within the cluster.
► Lack of awareness of availing the benefits the artisan card
8 ► Majority of the artisans have no KYC documents and thus have no
bank accounts, especially the female artisans
► No awareness among the artisans regarding PMEGP, PMAY,
PPF, Atal Pension Yojana, Bima Suraksha Yojana etc.
6.2.2 Financials gaps

Access to finance is a significant challenge, and only a few artisans have availed financial assistance
from banks and FIs. The financial gaps and reasons for lack of finance flow to the cluster as observed
from stakeholder consultation is given in the table below:
Table 27: Financial Gaps in the Cluster
S.
Reason Low Medium High
No
The loan application formats, assessment formats and

1
approval process are cumbersome
Artisans are not in a position to make expenses for pre

2
sanction formalities
Lack of facilitation for financial schemes by local bodies

3
and authorities
Lack of awareness of various government support

4
schemes
Limited role of banks and FIs to reach out to the cluster

5
members
Perceived role of middlemen in providing support in

6
availing finance
There is a risk in lending due to high evidence of NPAs,

7
reason being inability to pay and unwillingness to pay
Assessment of credit worthiness of bamboo product is a

8 difficult task due to lack of record of financial
performance of the business
Higher turnaround time evidenced from the stakeholder

9
consultations for disbursing the loans to units
During interactions with the household artisans, it was observed that raw material procurement is a
significant challenge, especially during the peak season starting from July due to working capital
crunch. Thus, artisans are unable to take up bulk orders from the markets. These artisans are also
refused credit from the raw material suppliers while purchasing the raw materials and rely on some
micro units for carrying out the activities. Although some artisans have MSME Artisan card, but they
are not sensitized regarding the benefits and subsidies that can be availed through these cards. As
per the discussions with the artisans, banks and financial institutions do not entertain their request for
credit facilitation support and are asked by the bank authorities to contact certain brokers or agents in
the district to avail credit support. It was also observed that most household artisans do not have KYC
documents like PAN Card, Aadhar cards, Voter ID cards etc required for loan processing. Therefore,
only a few artisans in the cluster have been able to avail credit facilities from the banks
Thus, the household artisans prefer to take loans from friends and relatives and sometimes from the
micro units amounting to a maximum of INR15, 000-20,000 to sustain their livelihood through the
bamboo craft. Also, informal money lenders are present in the market who provide small loan amounts
of INR 25,000-50,000 to the artisans at a very high-interest rate of 5-10% per month. The artisans
prefer to take loans from the money lenders rather than the banks as it is easier to procure loan from
them because money lenders do not require documentation. Also, the loan provided by money lenders
are free from hidden charges.
6.3 Leading practice study
Angamaly, Kerala
The Angamaly cluster has some peculiar features in relation to the general features of bamboo
economy in other parts of the country, and a number of important components relevant for a
strategy of ‘flexible specialization. An important feature of the bamboo industry in Angamaly is how
it transformed from a traditional means of livelihood for the poor people around the forest to an
organized industry. Traditionally, the bamboo workers, mostly belonging to backward communities,
have been subsistence workers gathering all forest products including bamboo for their livelihood.
Since the 193Os, bamboo-based items began to attract a wider market. Around the time of World
War II, it acquired the status of an industry following significant structural changes. Two major
features of this change were the employment of wage labour and the production for a wider market.
With the introduction of bamboo as an industrial raw material, the production process of the industry
was widened with the involvement of a number of households who were not traditionally dependent
on them. Gradually, although bamboo cutting and weaving were concentrated around the forests,
the hub of activities shifted to the central areas of new clusters. Thus, Angamaly emerged as a
centre of bamboo activity in the industrial map of the country.
Challenges Faced:
► In efficient Production Process
► Lack of Working Capital
► Lack of Government Support
► Quality of life of the artisans and retention of labour
Interventions
► Use of bamboo dust to make bamboo bricks

► Bamboo products of the cluster procured by government department like tourism, tribal
welfare, rural development and forestry department.
► Multi skilling of artisans to have a trained human resource.
► Extracting the bamboo silica to be used in shampoo and hair conditioner.
Key Learnings
► Bamboo Products are a sustainable alternative to plastics.

► Bamboo extracts along with aloe vera can protect the skin from acne.
► Innovative design concepts to enhance value addition of bamboo
► Use of bamboo dust as bio composites
07
Strategic
interventions
Strategic interventions
To address the gaps and needs identified in the sections above, strategic interventions for
development of the cluster have been suggested. Both non-financial and financial needs have been
mentioned in this section. The interventions have been derived based on stakeholder consultations
conducted on field, expert consultation carried out during the course of the report preparation.
Non-financial interventions will majorly include following:
7.1 Non-financial interventions
The major non-financial interventions suggested for the growth and development of the cluster are listed
as follows:
► Common facility centre with Raw material bank

► Training on seasoning of cane
► Modernization of cluster units by installing modern machineries
► Training on new technologies to make contemporary products
► Providing vocational and training courses on bamboo for engagement of youth
► Product diversification and market expansion
► Provision of artisans benefits
7.1.1 Procurement of Raw Material
The artisans in the cluster are purchasing raw materials at an individual level from the suppliers
available locally. As the purchase is at an individual level, they are not able to negotiate bulk pricing. A
Raw Material Bank (RMB) for the cluster is proposed which would be maintained by government
agencies such as DICC, DC Handicraft, etc. or be operated in PPP mode. The raw material bank and
would help artisans easily access bamboo, especially the variety from Nalbari district which is required
from the VIP sofa. The RMB will also help solve logistic issues in inconvenience transportation of
materials/ bamboo poles from artisan households.
The RMB can be located in the CFC mentioned below. The RMB will have the following characteristics
► All types of raw material required by the MSME units will be made available by the
government agencies.
► Availability of credit for purchase of raw material
► Faster dispatch of raw material
► Procurement planning for purchase of raw material
► Availability of material at affordable prices
► No restriction on quantity for purchase of raw material
The government will have a control price for the artisans and quality raw material would be available
throughout the year. Artisans would also be able to purchase raw material as and when required.
7.1.2 Common Facility Centre
A CFC already exists in the cluster in Raipur village; however, it is not utilised by artisans due to
several issues including electricity, inconvenience in transportation of raw material and finished
product from the CFC, lack of initiative among artisans to take up the responsibility of the CFC,
absence of a retail outlet/showroom, lack of a dedicated SPV to operate the CFC in a structured
manner. Interventions for expansion of a CFC have been proposed below:
Common Facility Centre
Dedicated SPV
Design Center Raw Material Bank Display and Marketing Centre
Single Point of Contact Centre Storage Facility Training Centre
Figure 53: Proposed Facilities in the CFC
► Dedicated SPV
A dedicated SPV needs to be established which will instil a feeling of belongingness within the
artisans. The SPV members can be nominated from the cluster household through a general cluster
voting program. The members will help motivate the artisans to work for a common goal and support
in procurement of raw material, marketing etc. This should be done by an external agency which will
help bring together artisans until the cluster is self-sustainable.
► Display and marketing centre
A common display centre can be established in the CFC to display the cluster products. The display
centre can showcase the range of products sold by units and new products which can be developed
(prototype and virtual designs). Additionally, a catalogue can be prepared for the customers to give an
insight to different products of the cluster. This will help in sales and market expansion of the cluster
units and the SPV will be responsible for developing marketing linkages. The unit will have a digital
display unit where new designs/product can be searched and then the product/design can be sent to
the design centre which further can go to NID/IITG for testing the feasibility of manufacturing.
► Storage unit
The CFC will also have a storage area for finished products which will reduce inconvenience of
transporting products back to the artisan’s home. As artisans lack space for keeping stock of products
at home, the storage unit will be helpful for artisans selling in bulk.
► Training centre
A training centre can be developed in the CFC which will provide a space for units in the cluster to
learn and develop new skills. SPOC management, micro units and technical agencies may use this
space to host workshops, seminars and other trainings to enhance and upgrade workers skills.
► Design Centre
At present, the cluster units are manufacturing a limited range of products with minimal modification.
Moreover, the artisans are unaware of latest market trends and designs. Therefore, there is a need for
design intervention in the cluster. For this a design centre can be setup in the CFC in collaboration
with National Institute of Design Jorhat or Department of Design IIT Guwahati. The centre will have a
basic design centre which can be empanelled with the above-mentioned institute. The empanelling
institute can check the manufacturability of the new designs and then send the final manufacturable
design to the CFC and the artisans there can then produce the products. This will help artisans to
design new product more efficiently and also to bring prototypes of new products which will further
help the cluster to improvise on product development and shorten the process of bringing new product
to market. The biggest challenge in marketing bamboo products is logistic as the products are bulkier,
so development of modular products could be focused on which would help in in exporting products to
international market.
An example of design led production is the Design and Product Development Cell set up by Tripura
Bamboo Mission to facilitate new product development, product value addition and product
diversification. The cell has appointed dedicated team of designers, master artisans and marketing
experts has been deployed to develop market-oriented prototypes.
► SPOC ( Single Point of Contact Centre) centre
The SPOC centre will be a common platform for customers and artisans to interact. This platform can
be proposed in both in digital and physical mode. The customers will place the order at the SPOC
centre, and it would be distributed to the artisans. This will help in the efficient order management and
ensure that the product is produced at a minimal time period from the time the order is placed. The
SPOC will also have a catalogue which will have the name of the artisans, their portfolio and
availability. Moreover, the centre will also spread awareness on government schemes and policies to
the artisans. The SPV members, in collaboration with technical and support institutes will promote the
SPOC centre. Upon placing orders, the SPOC will regularly update the customers regarding the
artisans selected to execute the work order, current stage of production and time taken to deliver the
product. Thus, the SPOC centre managed by the SPV members will be crucial in development of the
cluster.
7.1.3 Training on seasoning of bamboo for improving quality and finishing
Presently, the seasoning is mainly done through treatment of water and boric acid. Although the
process involved for initial processing and treatment is environment friendly, but it is time consuming
and increases the lead time in the production
process. In addition to this, due to the treatment being
traditional and requires an additional phase of sun
drying the treated bamboo poles for another 7-10
days which causes the bamboo to crack if over
exposed to sunshine, thus mechanization in this
stage is very important to maintain the quality of the
bamboo poles.
A vacuum pressurized bamboo treatment tank is

proposed for the seasoning of bamboo. This machine
is fully automatic and is used for treating the raw
bamboo poles before they are used in the production
process. The poles so procured are susceptible to
different fungal and insect attack. To increase the
longevity, the poles procured can be coated with
borax or boric acid and placed inside the tank for a
period of two to three days. The benefit of using this Figure 54: Vacuum Pressurized Tank
machine is listed below:
o Extended durability and life of bamboo

o Resist degradation of the bamboo
o Preserve the dimensional stability and tensile strength
o Impart aesthetic values like lustre and prevent abrasion etc
Once properly treated, these poles can be dried in a vacuum tank to
the optimum level followed by rubbing the poles with sandpaper to
remove the amorphous silica grains that might still remain stacked on
the bamboo poles. This vacuum drying reduces the risk of cracks
caused on the bamboo poles due to over exposure to sunshine.
Figure 55: Vacuum drying tank
7.1.4 Production/technology upgradation
► Modernization of the cluster units by installing advanced machineries
Under the Assam Bamboo and Cane Policy,2019, the cluster can upgrade the existing tools and can
avail subsidies. The financial assistance provided under the scheme is given below:
o Capital Investment Subsidy @50% of the cost of plant and machinery along with
electrical installations can be availed under the policy.
o For innovative ideas on the development on bamboo products, the cluster can avail a
onetime grant of INR 5 lakhs
o For the distribution of tools and machineries related to the production of bamboo
furniture, the state government will also provide 100% grant to the artisans of the
cluster.
In this context, the following machineries are suggested for the modernization of the Chakchaka
Cluster.
Table 28: Proposed Machinery for the Cluster
S.No Machine Name Purpose

To split the bamboo sticks in the desired size
1 Bamboo Splitting Machine
and profile
2 Bamboo Slicing Machine To thin slice the bamboo strands
To cut the bamboo strips into the desired
3 Bamboo Cutting Machine
lengths
4 Bamboo Treatment Tank To season the raw bamboo strips
Bamboo Semi-Automatic Drying
5 To remove moisture from the bamboo strips
Oven
6 Bamboo Polishing Machine To polish the surface of the bamboo strips
7 Bamboo Sizing Machine To stick size the bamboo strips.
The characteristics and specifications of the machine proposed and the benefits that will occur upon
installation of such machine are highlighted as follows
• Bamboo Splitting Machine

This machine is used to split the bamboo into different lengths. The machine can split the
bamboo poles at once into delicately fine strands which can be then moulded into the desired
profile. This machine will reduce the dependency on the
traditional tools like dao (bill hooks), pickaxe, hex-saw
which is currently used for initial splitting of the poles. The
machine will have splitter grills with blades of different
sizes and will use mechanical power for splitting the
bamboo strips.
Figure 56: Bamboo splitting machine
• Bamboo Slicing Machine
The bamboo slicing machine is useful to slice the

bamboo strands into slices of desired thickness
which can vary from 1mm to 30mm. It is an
automated machine with blades of varying
thickness for smooth slicing of the bamboo poles.
The thick slices can be used to make the bamboo
products while the thin slices can be used for
weaving the thick slices together. This machine will
eliminate the tedious process of first splitting the
cane strips and then slicing the same into fine strands Figure 57: Bamboo Slicing Machine
at once and will save substantial amount of time
involved in doing the same.
• Bamboo Polishing Machine
This machine can be used by the

artisans to polish the pole surface to
remove irregularities and minute
projections and depressions on the
processed bamboo body and for
smoothening the pole surface before
using it for making the product. This
will also reduce the time spent by the
artisans in sanding the bamboo body
with steel wool, coconut fibre or
sandpaper. Introduction of this
machine will provide better results
compared to the current manual
means used for product finishing.
Figure 58:Bamboo Polishing Machine
• Bamboo Sizing Machine
The sizing machine is used to make different sizes of the pole

strips as per the requirement of the product. The machine comes
with a cutter which can size the pole into various diameters
ranging from 115 mm to 350 mm. This machine will help size the
pole very precisely to fit the product profile and which cannot be
done manually using handheld tools to accurately size the sticks.
Figure 59: Bamboo sizing machine
Provisioning of artisan’s toolkits
In addition to the proposed machineries, under the proposed interventions some other tool kits can be
suggested that the artisans can avail to mechanize their means of production. This tool kits are better
designed and can perform the cutting, slicing, stripping and sanding of the raw material with a high
precision level. Provision of tool kits may also be availed under the Assam Cane & Bamboo Policy
2019, National Bamboo Mission with support from DIC, Barpeta.
7.1.5 Skill development of the artisans
It is crucial to have a skilled workforce working on the job in the cluster to maintain the quality standard
of the products. But due to lack of adequate skills, the units have been struggling with market
expansion and product diversification. They are not aware of the latest market trends and techniques,
which hamper their growth in the domestic market.
By upskilling the artisans in bamboo craft, the cluster and the community can be integrated profitably,
since bamboo generates large scale rural employment in the management of bamboo forests,
harvesting, collection, transport, storage and processing. Skill training at large scale is necessary to
generate employment opportunities for both rural and urban workers for the industrial applications of
bamboo.
A comprehensive structured skill development program, combining basic education and

vocational courses for various technologies related to Bamboo could establish this vital
link to connect and bring the entire stakeholders of the demand supply chain onto a single
platform.
This section focuses on recommendations for skilling the work force of units/ artisans. The details of
the proposed intervention are discussed below.
Field Level:
Up-skilling/skilling interventions for the big unit owners
Unit owners they lack formal training and are unaware of the latest market trends and design
developments. To up-skill these unit owners and expand the unit’s customer base, trainings can be
provided on new product design and product diversification.
Local bodies and technical institutions can be leveraged to support in skill development and income
generation of units. Furthermore, exposure visits can also be organized to nearby clusters such as
Chakchaka cluster developed under the support of IIT Guwahati. Further, under the Assam Bamboo
and Cane Policy, 2019, there is a provision for availing 100% sponsorship for training in ITI and skill
development centres.
Based on primary and secondary research, key areas identified for training of unit owners are:
Table 29: Proposed Training for Big Units
Potential Partners/
Skill set/competency for
Type of training Benefit programmes that
training
can be leveraged
► Comply with
Local CAs, Tech
Accounting skills ► Basic accounting skills financial
start-ups
► GST compliances
► IT Return
► Maintaining Cash
Book
► Enhance technical
and interpersonal
skills
► Increase
► Exposure visits to awareness on
benchmarked units industry best Large/benchmarked
Exposure Visits
(National/International) practices and industries (National
on machine handling regulations and International)
► Hands-on
experience on
operations within
large/benchmarked
industries
► Expansion of cluster IA, New tech start-
► Marketing and market up companies like
promotion techniques, ► Dependence on SME,
Marketing branding and e- brokers Connect2India,
marketing, digital reduced/eliminated CBTC, Bamboo
media, export ► Export regulations Tech Park,
► E-commerce Chaygaon
► Strong workforce
► Human capital ► Increased
Human ITIs, polytechnics,
development, management
Resource technical, start-ups,
Management capabilities and
Development BDS providers
Entrepreneurship entrepreneurship
development
► Improved
production practices
in the cluster
► Master craftsmen ► Knowledge on
exposed to latest market trends
Training the COHANDS,
market trends, ► Indirect upskilling of
Trainers EPCH, CEPC etc.
designs, technology artisans
and ► Quality
enhancement/
product
improvement
Training for skilled artisans/ household artisans and big units
Thus the artisans of the cluster can be trained on the following skill set to increase the skill set of the
artisans. A list of such training programs is listed below:
Table 30: Proposed Training for Household Units/ Artisans
Duration Annual
SN Trade Course name
(months) Intake
1 Handicraft Entrepreneurship development program 6M 200
On job training for skill enhancement for
2 Handicraft 6M 200
respective nature of work
3 Handicraft Training on raw material usage and utilization 6M 150
Training on the use of eco-friendly product

5 Handicraft 3M 50
packaging
7 Handicraft Training for diversification of product designs 6M 100
8 Handicraft Training on new product development 6M 50
9 Handicraft Training on the use of modern technologies 6M 100
Training on the concept of contemporary

10 Handicraft 3M 50
designs
Training Courses for the engagement and retention of youth of the cluster
Bamboo Application Technology courses by CGBMT

CGBMT (Centre for Green Building Materials and Technology, Bangalore) has developed different
types of courses in Bamboo Application Technology for different levels of education and eligibility of
the candidate. The eligibility starts from 7th standard class to UG level students. Various courses
offered by CGBMT are mentioned below:
► Post Graduate Diploma in Bamboo Application Technology

► Diploma course in Bamboo Application Technology Course
► Modular Course in Bamboo Application Technology- Certificate course
► Short term courses/field training in Bamboo Application Technology course
► Customised training program - CGBMT undertakes and organizes education and training
programs in different disciples for different target groups ranging from the level of artisans,
technicians to managers for national and international students.
► Introducing Bamboo as a material in technical organizations: CGMBT conducts design/ build
workshops for 3/5/7/15 days on Bamboo Application Technology for various architecture,
engineering and design colleges as per their request, all over india and abroad. It also
conducts such workshops regularly at its headquarters in Bangalore for awareness and
capacity building
► There are several successful examples of skill training for MSMEs including Bamboo Craft
cluster in Kenmynsaw, Meghalaya. The Kenbah–Kenmynsaw Handicraft Multipurpose
Cooperative Society, with support from the Indian Institute of Technology Guwahati,
Government of Meghalaya, and the Asian Development Bank (ADB), skilled 200 artisans in
producing diversified, contemporary bamboo products such as laundry baskets and other
household items.
7.1.6 Product Diversification & New Product Development
The cluster is continuing to produce the same products over the years. The furniture, e.g. VIP Sofa is
attractive and strong, but due to non-modularity in nature it is bulkier for transportation and increases
the logistical cost, therefore it is difficult to export such items. Thus, it is necessary to make modular
designs in the existing furniture and produce products as per the demand in the market. Further, as
the products are mostly hand crafted with little use of machineries, there is lack of standardisation
which affects the image of the cluster nationally and internationally in the long run. Thus it is proposed
to empanel the cluster with Design Institutes such as Department of Design, IIT Guwahati and
National Institute of Design, Jorhat for design improvement and new product design. A dedicated
market research project can be undertaken by these institutes to analyse the product demand and
asses the skill of artisans for development of such projects.
Policy/Institution Level:
Design intervention
Organizing awareness workshops and training programs for artisans on the importance of new design
development through a Design Expert. The Design Clinic Scheme of Ministry of MSME can be leveraged
which is implemented by the National Institute of Design. It helps in creation of sustainable design eco
system for the MSME sector through continuous learning and skill development. Under the scheme,
design awareness seminar and design workshop are also conducted to spread awareness of the value
of design and establish design learning in the cluster.
Financial assistance under Design Clinic Scheme-
Funding support of (1) INR 60,000 per seminar and 75% subject to a maximum of INR 3.75 lakhs per
workshop, (2) To facilitate MSMEs to develop new Design strategies and or design related products
and services through project interventions and consultancy.
(Government of India contribution at 75% for micro, 60% for SMEs for the project range INR 15 lakh to
INR 40 lakh.)
New product development
Artisans can further diversify their product range depending on the market demand. Some of the new
products that could be developed in the cluster are shown below:
► Higher Value Products
Outdoor dining set Outdoor dining set
Living room sofa set Outdoor sofa set
► Kitchenware
Kitchen utensils and storage containers
► Office products
Bamboo Blinds Bamboo Desktop Storage box

► Toiletries
Bamboo hairbrush Bamboo toothbrush
7.1.7 Marketing Initiatives
Marketing efforts have become crucial with the cluster market declining due to limited market access
and product diversification. Below are suggested interventions to support the cluster in carrying out
marketing activities.
Institutional level:
► Appointment of a Consultant
As the market demand for the Chakchaka cluster is limited and the cluster has no exports, a marketing
and branding consultant shall be appointed to conduct a branding campaign for the cluster finished
products. The consultant will be responsible for formulating the branding strategy and implementation
of interventions proposed.
► Establish market linkages

Micro units are well connected to aggregators or bulk B2B purchasers and have sales orders
throughout the year, however individual households have weak marketing linkages and sell much
smaller quantities. In this context, it is proposed to link the SPV of the CFC to the domestic market and
export market via several agencies like EPCH , IIE, IIT-G, Ministry of Textiles who can share their
expertise and connect the CFC to the national and international market. In this regard, private players
can be engaged as some of the local export handicraft houses like M/s Bamboowala are one of the
largest exporters of bamboo products and export the products in the NER to neighbouring countries
like Nepal, Bhutan, Bangladesh and Myanmar etc. Linkages can also be made with handicraft
emporiums such as Pragjyotika. Furthermore, retail outlets can be established at urban centres near
the cluster to promote sales of cluster products. The SPV will play a pivotal role in marketing and
promotion of cluster products.
► Packaging procurement
The present packaging is with gunny bags and wrapping up the product with corrugated papers. A
facility which can provide attractive and strong packaging that will protect the products from damage
can be established. Linkages cane be made with trades for bulk procurement of packaging with
support from the SPV.
► Government procurement of bamboo through GeM
Government e-Marketplace (GeM) is a one stop shop for online procurement of goods & services
required by various Government Departments / Organisations / PSUs. The National Bamboo Mission
GeM are developing a dedicated window, “The Green Gold Collection” on the GeM portal for
marketing and sale of the bamboo products. Products are across a wide range of categories including
furniture, lifestyle, office & home décor, kitchenware, plaits, panels and screen, roof floor tiles, etc.
Units can form an SHG or MSME to sell on the portal an increase their market reach. MSME-DI could
conduct awareness programs and trainings on selling and registration through online GeM portal.
► Exhibition and fairs

Exposure visits and participation in other national and international trade fairs like Delhi Haat,
Guwahati Haat, trade fairs in Maniram Dewan trade centre in Guwahati, India Art Fair etc.
In this regard, to ensure wide participation from the household artisans, the SPOC created can divide
the cluster artisans into batches and these batches can participate in trade fairs into selected regions
unanimously decide among these batches through a general election. In addition to this, under a tie up
with EPCH and IT companies, interventions can be undertaken to conduct online fairs through the
website of the cluster where the SPV members can display the products online for promotion and to
induce sales. For this a dedicated digital platform under the SPOC can be used to place orders. Each
artisan will have customer review for their previous products, so whoever is buying a product can
choose artisan of their choice. The platform will also showcase each artisan, their experience,
products they are developing, availability of artisan and time they will take to develop a product, etc.
► E-commerce portals
A large number of e-commerce portals such as Amazon, Flipkart, Indiamart, etc. are now selling cane
and bamboo products online. Amazon Karigar is a dedicated platform where artisans can showcase
their handmade crafts. Many state governments have tied up with Amazon for the programme
including Telengana and Uttar Pradesh. However, awareness of such sales channel is not there
among the artisans of the cluster. The artisans of the cluster need to be sensitised and trained.
► Linkages with Tourism sector
Linkages with Ministry of Tourism can be established to promote the handicraft sector. Cluster
products can be placed in “Souvenir Shops” in key tourist attractions all over the country. This will
help increasing the product visibility and promote the products of the cluster. Furthermore, products
can be sold at airports in key locations such as Guwahati International airport and Delhi International
airport
► Export promotion
Currently no cluster units are directly involved in exports. In order to assist more and more units to
explore the export markets it is essential to address the prevalent gaps related to export procedures
discussed the previous chapter.
o Provide export assistance through SPOC in CFC in collaboration with the DIC and
MSME-DI to help interested/aspiring exporters understand the procedural
requirements, information related to obtaining necessary compliances, providing
connects to concerned organization or authority which may provide specific export
related support on various aspects such as quality assurance, custom clearance,
buyer links etc.
o Export promotion through government subsidy schemes such as interest equalization

scheme and through collaborations with Federations of Indian Export Organizations
under assistance of MSME-DI.
o Provide export assistance through help desk in CFC in collaboration with the DIC and
MSME-DI to help interested/aspiring exporters understand the procedural
requirements, information related to obtaining necessary compliances, providing
connects to concerned organization or authority which may provide specific export
related support on various aspects such as quality assurance, custom clearance,
buyer links etc.
An example of successful cane, bamboo and handicrafts export from NER is Heirloom Naga and
Cane Concept that were able to sell their products globally to over 20 countries and cater to clients
such as Massimo Dutti and FabindiaCane Concept is a brand selling bamboo and cane products
including furniture, table ware, basketry etc. while Heirloom Naga sells home décor and textile
products. Their success can be attributed to adopting a cluster-based approach, design innovation,
involving mixing contemporary and traditional styles/motifs, strong network and market links both at
the national and international level through participation in export fairs and understanding of export
processes/ regulations.
► Craftmark logo
Application of Craftmark should be encouraged in the cluster. All India Artisans and Craftworkers
Welfare Association (AIACA) gives the Craftmark to the artisans for use on their product created by
handcrafted processes. Craftmark has developed a sector-wide, process-specific standards and
norms for labelling a product as hand-made. It increases consumer awareness of distinct handicraft
traditions and will help in promoting the products of the cluster.
Policy level:
At present, the cluster units are unaware of latest market trends and designs and do not have
knowledge on marketing techniques. Most of the household units are dependent on micro units and
aggregators for sale and marketing of the products.
Under Bamboo and Cane Policy of Assam, the state bamboo and cane development agency can
take the following steps to provide market linkage for the cane-based units:
► Bamboo and Cane Products can be promoted through advertisements in the print and
electronic media.
► Zonal and state level seminars and exhibitions on cane products can be organized.
► Participation of bamboo and cane-based units in different exhibitions under the state
marketing promotion “ Biponi” scheme.
► Establishment of “Souvenir Shops” of bamboo and cane products in the places of tourist
attraction (50% Subsidy on Fixed Capital Investment including Civil Works for establishment of
“Souvenir shops” for bamboo and Cane products in the places of tourist attraction with a
maximum ceiling of INR 5 Lakh whichever is lower)
► Marketing tie up with ARTFED, BRAWFED, AGMC etc can be facilitated.
► Sponsorship can be provided to the cluster artisans to take part in the regional, national and
international trade fairs within and outside the country.
► Buyers-seller meets can be conducted either in physical or in online mode to connect with the
dealers around the country.
► Marketing tie up with NEHHDC can be facilitated.
► Development of online portal (50% Subsidy on the cost of development of online portal for
marketing of bamboo and Cane products with a maximum ceiling of Rs 5.0 Lakh whichever is
lower)
Moreover, the Government of Assam offices can be encouraged to utilise the cluster bamboo and
cane products. As per the state bamboo and cane policy, the Government of Assam would encourage
government agencies to utilize bamboo for door frames, doors, window frames, windows, indoor and
outdoor furniture, flooring, wall cladding and outdoor decking in all government projects and also in
Private Projects. Bamboo products are environment friendly, and bamboo can be grown within 3-5
years in comparison to traditional timber which takes about 20-25 years to get fully mature.
7.1.8 Provisioning of employee/workforce benefits
Institution/Field Level:
► Provision of benefits like insurance, ESI, social security to be provided to encourage workers
to work in this industry. The micro units can support the artisans in getting their ESI by
uploading all the necessary documents on the online portal of Ministry of Labour and
Employment. This will further help in labour retention.
► Group insurance facility can also be introduced which might be cost effective for various
unskilled/skilled activities in the cluster.
► The SPOC will also work as a Help Desk. The Help Desk will help connecting the artisans of
the cluster with the important stakeholders to understand the different state/ local schemes of
the government of India available to the cluster. In addition to this, the help desk will also
facilitate communication with the technical institutions such as CBTC, Bamboo Tech Park at
Chaygaon etc so that the artisans are aware of various technological interventions in the
sector. The Help Desk will also link the cluster with financial institutions in the region and
provide them information about relevant financial products, central and state schemes that can
be availed.
► For artisan’s welfare campaigns can be conducted to create awareness regarding state and
central government MSME schemes such as ESI, medical and health Insurance, enrolment
under Aam Aadmi Bima Yojna for Artisans, Janashree Bima Yojana, Rajiv Gandhi Silpi
Swasthya Bima Yojana,etc.
o Aam Aadmi Bima Yojna for Artisans
The objective of “Aam Aadmi Bima Yojana (AABY) for Handicrafts Artisans” is to
provide life insurance protection to the Handicrafts Artisans. All crafts persons will be
eligible to be covered under the “AAB “Yojana for Handicrafts artisans subject to the
conditions laid down by LIC from time to time. The artisan should not be less than 60
years of age on the date of application. The assistance from the government may be
either in the form of monthly allowance or lumpsum grant or both not exceeding INR
3,000 per month.
o Janashree Bima Yojana
This Scheme by the Government of India and LIC provides insurance cover to the
individuals below poverty line and across 45 occupational groups. The artisans of the
cluster can enrol under this scheme as they belong to the handicraft sector. This
scheme provides insurance cover of INR 30000 to the nominee in case of normal
death of the beneficiary and an insurance coverage of INR 75000 in case of
accidental deaths or in the event of permanent disability.
o Rajiv Gandhi Silpi Swasthya Bima Yojana
This scheme under the Ministry of Labour and Welfare Department can be availed
under the DC Handicraft of the region. This scheme offers assistance to the artisans
to avail the best healthcare facilities across the country. This scheme offers annual
financial assistance of INR 30000 for IPD and INR 7500 for OPD patients. The
contribution pattern for the artisans under this scheme is INR 200 annually while the
government contributes an annual sum of INR 900.
7.1.9 Addressing Environmental Issues
The key pollutant that might damage the public health and safety are the solid waste in the form of
unused raw material, primarily the bamboo strips that are discarded along the roadside and then burnt
openly. The burning releases harmful gases like oxides and monoxides of carbon and sulphur oxides
which may cause breathing issues among the residents of the cluster and also affect the surrounding
area and environment. In this regard, a proper waste disposal system within the CFC has to be
undertaken. In addition to this, the unused raw material can also be shredded into pieces and when
mixed with certain phosphates and nitrates can act as fertilizers in crop cultivation. The unused
bamboo strips can also be grained to dust and mixed with adhesives, resin and formaldehyde to
create floor laminates.
As per the provision of NBM, the government has proposed management of bamboo waste in primary
processing units for making of value-added products like pellets and activated carbon. 60 % of the
cost will be covered.
7.2 Financial interventions

It is estimated that there is an overall credit demand of INR 65 lakhs while, currently, there is a very
limited supply by the financial institution in the cluster. As per the discussions with the stakeholders
during the field visit, it has been observed that:
• Due to the lack of adequate financing sources in the cluster, the household units are
unable to expand the production capacity due to the lack of working capital. The lack of
availability of working capital also affects the initiative to modernize the cluster by adopting
mechanized means of production by majority of the units.
• Due to the lack of financing from the banks, the household units borrow money from the
local lenders. The lenders charge a high rate of interest, thus lowering the profit margins
of the artisans in the cluster
• The suppliers of raw material and other accessories also hesitate to include the household
units with their credit facility arrangement made with the micro units of the cluster.
The financial interventions proposed are as follows:
► Financial inclusion of every artisan in the cluster
There is a need to provide reliable financial solutions to the economically weaker sections of the
society through process transparency and without any hidden costs. At present, the artisans of the
cluster are unable to avail credit assistance as they don’t possess appropriate documents for
declaration of income. Therefore, to eliminate these barriers, GoI has introduced exclusive schemes
for financial inclusion such as PMJDY, APY, PMVVY, stand up India, SIDBI Smile Scheme, CGTMSE
Scheme etc. Under these schemes, the concerned government authorities may ask the banks to
open a savings bank account with facilities like no minimum balance, Aadhar based deposit and
withdrawal, thereby bringing all the artisans under a single window to receive benefits of several
government schemes
► Awareness campaigns
MSME-DI/DICC can organize awareness programs on schemes like CGTMSE, MUDRA, PMEGP etc
► Handholding support
Handholding support can be provided to units in preparing the necessary documents required for a
bank loan, applying for a loan, interaction, and follow up with banks for approving loans by the
banks/FIs.
► To make units fit for loans, GST Registration and filings should be encouraged to access GST
based Loans. Activating the district help centres of initiatives like ‘Stand-up Mitra’ of SIDBI for
handholding artisans for bank loan, etc.
► Refinement in loan process
The number of documents required for processing of bank loans should be decreases and loan
processing for sanctioning a loan after all the documents has been submitted should be reduced from
current 1.5-2 months.
The financial intervention will help all the artisans of the cluster to avail the different schemes of the
government listed below
Table 31: Financial Inclusion and MSME Schemes
Scheme Scheme Supporting GoI Grant or

S. No Benefit
name Highlights Organization assistance
Dependent Scheme
Ambedkar (i) Dastkar on nature of involves
DC
1 Hastshilp Shashktikara the sub- support to
Handicraft
Vikas Yojna n Yojna. scheme Infrastructure
availed and
(ii) Design & technology in
Technology the
Upgradation Handicrafts
(iii) Human sector
Resource including
Development development
(iv) Direct of Urban
Benefit to Haats,
Artisans Emporia’s,
(v) Infrastructure Marketing
and and Sourcing
Technology Hubs in
Support. Urban Areas,
Common
Facility
Centers, Raw
Material
Depot, Crafts
Village,
Integrated
Handicrafts
Park, etc.
To generate
employment in the Max The
rural and urban Assistance of household
areas by setting up INR 25 lakhs artisans can
PM
employment for the avail WC
Employment
1 ventures and to KVIC /DIC manufacturin support and
Generation
provide continuous g sector and take up
Programme
and sustainable INR 10 lakhs entrepreneur
employment to the for service ship
traditional and big sector avenues.
artisans
Capacity
Building in
terms of
Credit procuring
To provide Govt. Of Loans up to
Guarantee modern
2 collateral-free credit India, along INR
Trust fund for machineries
to the MSME with SIDBI 200Lakhs
MSME and
increasing
the scale of
operations.
To increase the Artisans can
Hassle free
credit levels among avail
Commercial documentatio
MSME the small business extended
Banks and n process
Business and entrepreneurs credit support
3 Other and speedy
Loans in 59 and to relax the without much
Lending approval up
minutes rigid lending documentatio
Banks to INR
policies to the n issues.
20Lakhs
needy sectors
Scheduled Procurement
Financial
Banks or of Modern
Credit Linked Assistance for A Maximum
Central/State machinery
Capital Technology up capital Loan
4 Financial and Tools
Subsidy gradation and to of INR
Institutions and
Scheme modernise the 100Lakhs
(NABARD) Equipment to
production
diversify
equipment and product
machineries. designs,
reduce
wastage and
cater new
product
segments
Cheaper
Maximum loans to the
Assistance micro units to
Pradhan Financial Scheduled
upto INR improve the
Mantri Mudra assistance to the Commercial
5 10Lakhs WC situation
Yojana non-corporate, non- Banks / SFB/
and also
farm and MSME. MFI/NBFC
purchase
modern
machineries.
WC
Term Loan assistance to
Scheduled
and WC Loan the women
Stand Up Financing SC/ST Commercial
ranging from artisans of
6 India Scheme and Women Banks / SFB/
INR 10Lakhs the cluster to
Entrepreneurs MFI/NBFC/
to INR take up
SIDBI
100Lakhs entrepreneur
ship
Modernizatio
n of existing
Maximum tools and
To set up a Assistance of equipment
technology and INR 100 and setting
ASPIRE incubation centre to lakhs or up an LBI or
7 MSME / IIE
accelerate 100% the Incubation
entrepreneurship in cost of plant centre to
the agro-industry and promote
machineries entrepreneur
ship in the
region.
Loans for
Soft loans to meet business
the debt-equity ratio expansion by
Maximum
Smile to take up business catering to
8 SIDBI assistance of
Scheme expansion, other regions
INR 25Lakhs
technology up or increase in
gradation etc product line
or segments
08
Economic and
social impact
Economic and Social impact
8.1 Cluster map after intervention

The intervention undertaken would be to establish linkages of the cluster with various government and
non-government institutions/organisation to up-lift the cluster artisans in various aspects. Financial
institutions like – Office of the Development Commissioner (Handicrafts), State Bank of India, Union
Bank of India, NABARD, Central Bank of India, Indian Overseas Bank and other micro credit institution
will be integrated to take part in extending micro credit/loan facilities to the Chakchaka Bamboo
Cluster. Other national level institutions such as Institutes and Organisation under MSME like - IIE,
NABARD, KVIC, and National Small Industries
Under this chapter, an attempt has been made to highlight the tentative major convergence initiative to
develop the Chakchaka Bamboo Cluster. In order to optimise the efforts and maximise impact and
sustainability, it is imperative to ensure the convergence and bring in synergies between different
private initiative and government’ schemes in terms of planning, process and implementation.
The figure highlights the synergies among different organization/institutes needed for overall
development of the cluster.
Figure 60: Cluster map after intervention
8.2 Expected impact after intervention
The economic impact generated from the implementation of proposed financial and non-financial
interventions can be classified under two categories: qualitative and quantitative. The qualitative
impact may result scenarios i.e. enhanced productivity of manufacturing units, improved working
conditions and improved industry competitiveness of the cluster. Whereas the quantitative impact may
increase industrial parameters i.e. manufacturing output, exports of bamboo and cane products,
investment in the cluster and generation of new jobs.
Qualitative Impact
Table 32: Qualitative Impact Post Intervention
Problem area Current scenario Expected impact

► Poor infrastructure ► Improved infrastructure
► A majority of the ► Financial and technological
individuals work in linkages
Working Condition household units ► Registration in ESI Scheme and
► Household artisans work Health Insurance
in the street adjacent to
their premises
► Lack of raw material bank ► Increase in productivity by
High procurement cost installation of latest machines
► Longer production cycles ► Reduction in time required for
► High wastage of raw bamboo treatment with
materials installation of bamboo treatment
tank
► Raw material will be readily
Productivity
available with the establishment
Enhancement
of raw material bank
► Cheaper production cost with
improved tools and machines
► Reduction in raw material
wastage
► Optimum use of inputs
► Reduction in operational cost
► Obsolete technology ► Better market linkage
► Lower scale of operation ► Higher sale proceeds
Industry ► Limited product designs ► Economies of scale
Competitiveness and selected buyers of ► Product diversification
the product ► Expansion of market network
► Lower margins to artisans ► Higher stakeholder involvement
► Non-willingness of new ► Labour trained in the use of
generation to work in this advanced machineries and
industry modern technologies
► Non-willingness of ► Basic benefits would be provided
existing to the workers which would
► workforce to work in improve standard of living
Labour
cluster due to welfare ► Skill upgradation
benefits provided by ► Knowledge on market trends
schemes like PMEGP /
PMAY/ APY/ PPF/NPS
► Lack of knowledge on
latest market trends
► No knowledge of value- ► New product development.
Product Diversification added products ► Focus on products as per
consumer preference.
Problem area Current scenario Expected impact
► Producing a very limited ► Contemporary high utility
variety of premium range products
products ► Production of value-added
► Premium products are products
produced by only a
handful of artisans
► No export linkage ► Cluster turnover increased
► Non-availability of ► Presence on e-commerce
marketing expert websites
providing services to ► Development of dedicated
expand their market website for cluster
further both domestically ► Market expansion
and globally ► Export promotion
► Lack of knowledge of ► Creation of marketing linkages
export procedures ► Presence in retail chains, govt
Marketing ► Lack of knowledge of emporiums etc.
government schemes ► Creation of retail outlet and
providing support for display centre
exposure visits and ► Development of product
participation in national catalogue
and international fairs and
exhibitions.
► Lack of knowledge of
major trends in the
industry
► Creation of SPV which will work
towards the cluster common goal
► Lack of a dedicated
Business Environment and instil the feeling of
industry association
belongingness amongst the
cluster units and artisans
► There is demand for ► Time involved in loan
working capital, but banks disbursements reduced
are not willing to provide ► Loans and advances from banks
them loan due to risk of improved and increased for
credit default cluster units.
► Many unit owners do not ► Increased applicants for
have knowledge of credit Central/state Schemes
Finance rating ► Increased awareness on
► Most of the units do not schemes
apply for the bank loan as ► Increase in loan assistance and
the documentation development and expansion of
process is very slow business operations
► Most of the units are ► Financial inclusion
unaware of various
schemes and subsidies
Quantitative Impact
For analysis of quantitative impacts, historical data related to factors such growth in the number of
units, new investment and employment within the Chakchaka Bamboo and Cane Cluster over three
years was collected through interactions with the cluster artisans. The information obtained are
explained below:
New
New units New employment
FY investment (in
established created
INR)
2017-18 20 60,000 60
2018-19 15 45,000 45
2019-20 5 15,000 15
Average 13 40,000 40
Total 40 60,000 120
Average annual growth rate -37.5% -38% -36%
Thus, the analysis reveals that the average investment primarily in raw material and labour cost has
decreased over the years due to the high cost of raw material procurement along with the cost of
transportation. The employment levels in the surveyed units have also gone down over the years as
the units are cash strapped due to no access to finance and credit facilitation support. Due to this
reason there has been a very little increase in the cluster household taking up the craft over the years.
If the proposed interventions are implemented successfully, the cluster will significantly benefit by
acquiring alternate sources for raw material procurement which, in the long run, will improve the
average turnover to the cluster. In addition to this, the units will also generate huge employment
opportunities among the youths of the cluster. Those artisans engaged part-time due to the lack of
working capital or poor infrastructure facilities can be engaged full time.
After the proposed interventions are implemented to bring in better technology, larger market
coverage, and product diversification, the cluster would expand its market reach and explore the
untapped market segment owing to its highly crafted products. This would lead to better returns of the
artisans and give them higher margins.
Thus, three growth scenarios are proposed namely high growth scenario with an average growth rate
of 16% , moderate growth scenario with an average growth rate of 10% and normal growth
considering the improvement at the industrial growth rate of 4%. It is also assumed that if no
interventions are undertaken the cluster may continue to grow at the historical rates mentioned above.
The table below shows year-wise projected economic impact, which may be generated in the
Chakchaka Bamboo Cluster under normal, moderate and high growth scenario:
Growth
Financial Years
Scenario
Increase in no. of FY 21- FY 22-

FY 20-21 FY 23-24
cluster units 22 23
High (16%) 40 47 54 62
Moderate (10%) 40 44 48 53
Normal (4%) 40 42 43 45
High (16%) 60,000 69,600 80,736 93,653

Investment (in INR)
Moderate (10%) 60,000 66,000 72,600 79,860
Normal (4%) 60,000 62,400 64,896 67,492
High (16%) 120 139 161 187
Employment Moderate (10%) 120 132 145 160
Normal (4%) 120 125 130 135
Number of Cluster Units

70
62
60
55%
50 45
40
40
30
20
10
0
FY 20-21 (Current) FY 23-24 (High Growth) FY 23-24 (Normal Growth)
Investment (in INR)
100000 93653
90000
80000
67492
70000
60000
60000
50000
40000
30000
20000
10000
0
Employment
200 187
180
160
135
140
120
120
100
80
60
40
20
0
Thus, it can be concluded from the above analysis that if the proposed interventions are implemented
in the Chakchaka Cluster, then in the next five years, there will be a growth in the number of cluster
units by 55% under the high growth scenario and the same trend can be observed for the growth in
cluster employment.
09
Way
forward
Way forward
9.1 Action plan
It is necessary that the proposed interventions are implemented timely with due support from the key stakeholders of the cluster along with the
beneficiaries. Thus, an action plan has been suggested with the proposed interventions categorized as per their implementation level such as policy
level, institutional level, and beneficiary/field level. Also, the time horizon over which the proposed interventions have to be implemented are also
marked. By implementing the proposed interventions, the cluster would achieve its goal of a big cluster. However, to achieve this goal, the cluster needs
to work keeping its vision intact and divide overall goals into short term and long-term objectives.
Based on the discussions with various stakeholders in the cluster, an action plan highlighting immediate, medium term and long-term interventions has
been developed to develop the cluster. These actions will comprehensively address the gaps of the Chakchaka cluster units and promote holistic
development of the units. The main actionable points with sub activities are mentioned in table below.
Medium Long Intervention level

S. Strategic Immediate
Key activities Responsibility Term (M7- Term
No intervention (M1-M6)
M12) (>M12)
Organizing in-house
training program for the
artisans for capacity
building, training for
efficient utilization of raw Field/beneficiary level
material, economies of
scale, improving ASRLM, IIE, NID,
Skill development productivity through lean Technical
1 and capacity manufacturing Institutions, Experts,
building
ME DI, DIC
Organizing design
workshops for the Field/beneficiary level
artisans
Training program on
seasoning and treatment Field/beneficiary level
of bamboo
M12) (>M12)
Organizing exposure
visits to similar clusters to
DICC/ DRDA
understand the technical
knowhow
Organizing knowledge
dissemination workshops
to create awareness
about the Raw Material Field/beneficiary level
Bank
2 Raw Material
State Government,
DIC,
Established a dedicated Policy/field level
MoMSME, SPV
Raw Material Bank
Establishment of CFC
including facilitates such CBTC / MSME-DI
SPOC, Design Centre,
3 Infrastructure DICC/ DC Policy/field level
Display and Marketing
Centre, Training Centre, Handicraft
Raw Material Bank etc
State Government,
Awareness and DIC, MoMSME,
sensitization programs on Municipal Field/beneficiary level
waste disposal Corporation,
4 Environment Barpeta
Setting up a standard raw State Government,

material waste disposal DIC, Institutional level
facility in the CFC MoMSME
M12) (>M12)
Research study on use of

State Government,
bamboo skin and
Industries
bamboo saw dust strips Institutional level
Department
to create bio fertilizer and
floor laminate MoMSME
Organizing awareness
workshops and training Technical expert
Product programs for artisans on Field/beneficiary level
the importance of new NIFT, IIT, NID etc.
Diversification
5 design innovations
(development of
new products)
Providing workshops on Technical expert
Field/beneficiary level
new product development NIFT, IIT, NID etc.
Appointment of marketing
and branding consultant SPV Institutional level
Development of brand Marketing expert
catalogue Field level
and SPOC
Creating awareness
program on marketing ASRLM, Marketing
schemes of Government Field/Institutional level
expert and SPOC
6 Marketing of India
Creating awareness on
marketing linkages, e- ASRLM, MSME-DI,
commerce etc and DIC, Marketing Field/Institutional level
facilitating partnerships expert and SPOC
Creating awareness
about participation in ASRLM, Marketing
handicraft exhibitions and expert, MSME DI, Field/Institutional level
events. DIC, SPOC
M12) (>M12)
Development of website Marketing expert,
to sell cluster products Field level
agency/ SPOC
Awareness on sales
through GeM and support ASRLM, Marketing
listing products on expert, DC Field/Institutional level
dedicated Bamboo page Handicraft, SPOC
Linkages with CBTC
outlets, government Marketing Expert,
emporiums and other Field/Institutional level
SPOC
local brands
Conducting research
study on export market Marketing expert
Institutional level
potential and SPOC
Awareness on
international best Field/beneficiary level
practices for technology
Practical training/
seminar on usage of Field/beneficiary level
Technical Institutes,
advanced tools
MSME DI, DICC
Technology Up-
7 Installation of advanced
gradation
machinery in CFC and
Field/beneficiary level
repairs of the existing
ones
Provision of advanced
MSME DI, DICC Field/beneficiary level
tool kits
Awareness workshop on Field/beneficiary level

and welfare campaigns
8 OHS on govt schemes, MSME DI, DICC
medical, health insurance
etc.
M12) (>M12)
Providing benefits like Field/beneficiary level
artisan card, ESI, group MSME DI, DICC
insurance,
Awareness program on
bank procedures for loan
Bank/FI, MSME DI,
approval, different Field/beneficiary level
DIC
schemes like CGTMSE,
MUDRA, PMEGP,
Handholding support for Bank/FI, MSME DI, Field/beneficiary level/

9 Finance
preparation of documents DIC Institutional level
Activating the district help
centres of initiatives like
‘standup mitra’ of SIDBI
Bank/FI/ DICC, Field/beneficiary/
for handholding artisans
MSME-DI Institutional level
for bank loan, etc.
10
Annexures
Annexures
10.1 List of stakeholders interacted with
Name of the
S.No Unit Name Contact Information
Contact Person
M/s Ali Cane &

1 Md. Ali Hussain 8011496096
Bamboo
M/s Dewan Cane

2 Dewan Hasanoor 7002650401
& Bamboo
M/s Green
3 Rajat Ali 7635990730
Bamboo Industry
M/s Janapriya
4 Ramizuddin 8638093264
Bah Bet Udyog
M/s Lal Cane and

5 Lal Miya 6001919966
Bamboo Industry
M/s Hasin Cane

6 and Bamboo Abdul Mazid 9101746891
Industry
M/s Salma Bah

7 Sohrab Ali 9957014721
Bet Udyog
M/s Sultana Cane

8 & Bamboo Somesh Ali 7896301119
Industry
M/s Raki Bah Bet

9 Rakibul Islam 7002036994
Udyog
10 Artisan Jahidul Islam 6002729209
11 Artisan Farmaan Ali 6393369470
12 Artisan Siddik Ali 9101738756
13 Artisan Jeherul Islam 7002247882
14 Artisan Zahirul Islam 6003435946
14 BDO, Chakchaka Bipul Deka 7002498375
GM , DICC
15 RitumoniPachani -
Barpeta
Branch Manager , Diganta Kumar

16 BOI , Barpeta Gogoi -
Road Branch
General
Secretary,
17 Anchalik Gram Abdul Malik malikagup@gmail.com
Unnayan
Parishad
Cluster
Development
18 Executive of Abdul Ajij -
Chakchaka
Bamboo Cluster
10.2 Sample Questionnaire

A. MSMEs
The survey will help in understanding the financial and non-financial challenges faced by MSMEs in the
cluster and provide recommendations to address these issues. The information provided will be
strictly used for the purpose of this study only.
Cluster MSMEs –Non-Financial & Financial challenges
You are:
• Individual weaver/artisan/craftsmen
• Master weaver
• Manufacturer
• Wholesaler/trader
• Exporter
• Any Other _______________
Firm Name: CEO/MD/Owner name:
Address: Name of the place: District Block
Website:
• Yes
Is your firm Do you have d. Udhyog Yes No
registered? • No Aadhar/ EM-II/ Udyam
Registration
Year of establishment
Ownership pattern: Proprietary Partnership Private Limited Public No legal

Limited entity
Are you a part of any

Industry
Association/Business
membership
Organisation (BMO)?
(Yes/No) if yes please
mention the name of
BMO.
Are you part of any Yes If Yes, Which one? If No, why?
Cluster?
How many units are there
No
What are the top 3 1. 2. 3.

products you offer?
Where all do you sell Local Market/trader Government Other Export Other,
your produce/products (State/Central) states outside please
majorly? Please tick in India specify
(✓) all the relevant India
options
No. of employees (or Full time: Permanent: Male:

%)
Part time: Contractual: Female:
Any other business? Yes What is it?
No
Major source of your Formal Sources Informal Sources Internal Other -

financing (%) (Banks/NBFCs etc): (friends/relatives/money Fund Please
lenders): generation specify
/ Own
sources:
Do you avail any Yes Any innovation or R&D Yes If yes,

credit facility in the undertaken on your own which
or in one?
last 12 months?
collaboration/support
from some institute?
No No
If yes, then amount
and bank/lender-
Have you taken any Scheme Program Name the

support – Pvt or Govt organisation -
Do you have PAN Yes Do you have GST No.? Yes

card
No No
Do you have Aadhar Yes Do you file ITR Yes
(In case of proprietor Statements?
or partnership firm)
No No
Do you have CA Yes Do you have Current Yes

certified Financial Account Statement
Statement
No No
Name of the Primary Total Number of

Banker Banking relationships in
terms
accounts/loans/deposits
etc.
Annual Turnover/ Investment in plant &

Range of turnover machinery
(last 3 years)
(last 3 years)
Annual Production Profit margin
Production cost – Raw material Power Labour Other/Misc.

break up
(%)
Email ID: Phone number
Non-Financial Challenges
1. Raw material
a. What are the critical raw materials used for production?
b. What are the sources of supply of major raw material?
• Within the cluster
• Outside state
• Within State
• Outside country
c. Is this best quality raw material? If not where else is better quality material available in India or
abroad?
d. Who are the best suppliers? Are they specialized or general suppliers?
e. Do they advise you on choice of appropriate raw material? Does anybody else support you in
selection?
f. Who advises you on choice of raw material?
g. Are the raw materials available throughout the year? If not, please mention which isn’t and why.
h. How much raw material is procured at once (like for one production cycle)?
i. How much raw material is required per product (if multiple raw materials are there then, provide
break-up)
j. Are there enough RM stockists in the Cluster/catchment area?
k. What forces the cluster enterprises to procure RM from outside – cost or quality or both?
l. What is the stocking cycle for enterprises? What type of RM are stocked by enterprises for longer
durations?
m. What is %age of damaged/unfit for use RM leftover with enterprises?
Name of the raw Procured Quantity/ Cost/ unit available Cost/ unit
from? Percentage in the Cluster/ outside the
used in catchment area Cluster/
manufacturing catchment area
n. Do you procure jointly along with other manufacturers? Is it possible?

o. Do you think somebody will be willing to open an agency on this raw material?
p. Is it possible to rent a premise and create a raw material depot?
• If interested, which are the other/other type of firms who will be interested in this
development?
q. Challenges faced by you

• ____________________________________________________________________
____________________________________________________________________
r. Suggestions/Need/requirement
• ____________________________________________________________________
____________________________________________________________________
• ____________________________________________________________________
____________________________________________________________________
• ____________________________________________________________________
____________________________________________________________________
2. Products
a. What are the different products manufactured in the cluster?
b. What is the main product in the cluster?
c. Price of these products
d. Use of the products made
e. Quantity produced annually
f. Is this the final product which can be used, or it is spare part/raw material for some other
product.
g. Is this product seasonal or manufactured all-round the year?
h. Has the product changed overtime in terms of size/shape/quality?
i. How frequently do you change your product designs to suit the market trends/fashion?
j. Do you appoint designers?
k. What is your source of adopting/gaining knowledge on new designs/market trends?
3. Production process
a. What is the whole process of production?
b. What is the entire value chain? Stages of production?
c. Vertical or horizontal integration?
4. Technology and spare parts

a. Type of machinery/technology used (modern/outdated)
b. Machinery details:
Used for Approx. Approx. Available Bought from Major Major Quality
which average Cost in India dealer or supplier supplier certification
process age or manufacturer name location requirement
imported
from
which
country
Machine/
technology
1
Machine/
technology
2
c. Whose advice did the enterprise take in selecting these.

d. Have you received any kind of support - (designs, materials, equipment and processes,
training, etc.) wrt technology or production process?
e. From whom? (own skilled employees, suppliers, other MSMEs, large manufacturers sub-
contracting work, other external buyers such as export-agents and large traders, export
promotion agencies, local R&D or technical institutes, etc?
f. Was it mostly incidental, or deliberately conceived? How, if at all, was it paid for by the
enterprise?
g. Are there any trends in the pattern of upgrading and its support - is it becoming more
continuous and deliberate?
h. Does the enterprise specialize (in whole or part) in one or two stages of a production process?
Does it rely for supplies on other MSMEs? How did the specialization develop? Is it becoming
more intense and important?
i. Spare parts:
i. What are the Principal sources of parts, servicing, and repairs?
ii. Are these sources within or close to the cluster? Location?
iii. Are they general mechanics/dealers, or specialists in these types of equipment?
j. Has the enterprise maintained, right up to the present, a record of upgrading/diversifying its
products and/or processes? What are the major (or typical) examples of this?
i. When did you updated your production facility/machinery last?
ii. How frequently do you do O&M?
k. What are the main problems (if any) with the production equipment or with the processes of
production (ask for separate production phases)? Or any other challenges faced by you
• _______________________________________________________________________
_______________________________________________________________________
• _______________________________________________________________________
_______________________________________________________________________
• _______________________________________________________________________
_______________________________________________________________________
l. Suggestions/Need/requirement
• _______________________________________________________________________
_______________________________________________________________________
• _______________________________________________________________________
_______________________________________________________________________
• _______________________________________________________________________
_______________________________________________________________________
5. Testing & Certification

a. Is there any prescribed quality/standard your product by any national/international standards
agency?
b. Do you have ISO/HACCP/OHSAS/ISI/BIS registration? How many units in cluster have the
such registration?
c. Do the cluster enterprises also need to validate/document the prescribed standards for RM?
d. What is the current modus operandi for testing? List of tests required for the product
e. Do you have a testing facility in your vicinity/cluster/district?
f. Do you have a certification facility in your vicinity/cluster/district?
g. Certifications your firm has
i. …
ii. …
iii. …
h. Suggestions for improvement/additional requirement

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
6. Packaging materials
a. Is packaging required for your product? If yes, what is the packaging technique?
b. Where do you procure packaging material from?
c. Are prices competitive?
d. Challenges/Suggestions for improvement/additional requirement
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
7. Markets and marketing

a. Major markets: Where are the enterprise's main products sold: locally, elsewhere in the country,
export markets? (Obtain volume and/or value percentages if possible, by main product or
product-line)
b. (If the enterprise is a relatively old one in terms of the cluster's history). How do its main products
and markets differ significantly from those of its early days, or of local MSMEs in the same
general line of business, which were well established at that time?
c. What are the main marketing channels used (directly to the public or to other enterprises:
manufacturers, particularly other MSMEs or large manufacturers in the cluster, agents,
intermediary traders, exporters, etc.)? If to other enterprises, are they local, or do they have a
local subsidiary? Is the pattern of marketing channels changing significantly, and if so how?
i. For sale in India: ___________________________________________
ii. For sale outside India: _______________________________________
d. What, apart from orders, do these channels consciously or involuntarily provide (general market
intelligence, designs, market requirements, technical assistance, training, credit in money or
materials, etc.)? Is the pattern of such provision changing, and if so how?
e. Who are the enterprise's main competitors: other MSMEs in the cluster, other enterprises within
the country, importers (distinguish by main product/market if necessary)?
f. What are the main product features used to attract customers (quality, constant upgrading or
modification to customers' needs, assured/rapid delivery, advertising, price, etc.)? Is the
emphasis shifting between these features, and if so how?
g. What (if any) other aids to marketing and market intelligence has the enterprise found to be of
significant use (joint marketing arrangements with other MSMEs including order-sharing,
process specialisation, sub-contracting programmes or schemes, use of private consultants,
export promotion agencies, export credit)? How important are these aids? Are they becoming
more important?
h. Has the enterprise obtained effective help or advice in solving these problems, which is not
already covered by answers to the above? If so, from whom (enterprises and/or institutions)?
What was the nature of this help? How important was it? Is it still needed?
i. Does the enterprise have any plans for product diversification?
j. Do the firms feel that there is need for any typical need for common infrastructure for marketing
purposes? Do you feel that your types of firms will invest for the same?
k. What are the enterprise's main problems in marketing (selection/design/quality/prices of its
products, transport costs, lack of export credit, deficient market intelligence/information, etc.)?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
l. Suggestions
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
8. Manpower
a. Skill /qualification required_______________________________
b. Source location of manpower ______________________________
c. Monthly average pay – Range ______________________________
d. Are different type of work done by men and women. What about wage/fee rate? Is it same or
different?
e. Are they provided with ESI facility, medical insurance?
f. Is any training provided to them?
g. How is the training provided?
i. In house training
ii. Outside Professional training
iii. Government training institutes
iv. Govt. skills program
v. On the job training
h. How frequently are the trainings organised – monthly, quarterly, bi-annually, annually
i. Where did the owners and employees receive their basic useful training (on the job/in former
jobs/from public or private training or educational establishments)?
j. Has the enterprise maintained, right up to the present, a record of upgrading the skills of its
workforce, whether owners or employees? What are the major or typical examples of this?
i. If yes, then from where did it receive support in upgrading skills?
ii. If no, are there significant problems with the skills and training of the
enterprise's workforce?
k. Are any other significant learning/technology upgrading mechanisms used by the enterprise (e.g.
use of private consultants or engineers, consultative meetings or learning groups of MSME
owners, trade publications, public or common testing or design facilities?)? If so, what are their
main uses, and how important are they to the enterprise? How did they originate, and how are
they currently organised?
l. Does the enterprise have reasonably firm and fundable plans for further upgrading the skillset
within the next two or three years? What is their essence? What sources of support (including
cooperation with other enterprises) does it envisage will be most useful? What, aside from
funding limitations, will be the most important obstacles?
m. Challenges/Suggestions for improvement/additional requirement
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
9. Energy/CSR
a. Energy consumption during production process
b. Do you use any renewable energy sources?
c. Environment friendly/efficiency improvement practices adopted
d. Is this industry producing wastage which is hazardous for environment (is it possible to
measure)?
e. Working condition of workers
f. Challenges/Suggestions for improvement/additional requirement
___________________________________________________________________________
____________________________________________________________________________
10. Schemes
a. Have you availed any State and Central Government Schemes? Please tick against your choice
(✓)
(a) Yes (b) No
i. If yes, what are the schemes availed by you in past 2 years?
S. No Name of the scheme State Govt./Central govt.
1.
2.
3.
4.
5.
ii. If No, reasons for not availing

________________________________________________________________________
b. Please specify challenges while availing the above schemes (if any):
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
c. Suggestions
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
11. Infrastructure
a. Do you use any common infrastructure or Govt. facility/institute –

i. CFC
ii. testing lab
iii. certification lab
iv. Trade/export centre
v. Designers
vi. Any other, please mention
b. What are the principal customary sources for the main infrastructural facilities and services
used by the enterprise (electricity, telecommunications, water, gas, transport facilities, waste
disposal and effluent treatment, etc.)?
c. Whether or not these primary sources are publicly owned or regulated utilities, has the
enterprise supplemented them in any significant way by itself, through cooperation with other
SMEs, or through the services of specialist private initiatives (e.g. building/improving access
roads, electricity from private stand-alone generators, common waste disposal services,
common fax or other communications facilities)? How was this financed and organized? How
long have they been operating?
d. Does the enterprise still have any substantial infrastructural problems? If yes, describe the
most serious problems.
i. No
ii. Yes
• licenses, tax law and administration,
• contract/sale/damages law,
• land titles and access, zoning and building development regulations,
• import policies and tariffs,
• safety and labour regulations, work permits for non-nationals, laws on acceptable
loan-collateral, etc.)?
e. Where has the enterprise obtained effective help or advice (if any) in solving these problems
i. consultation and advice from private consultants/professionals
ii. local officials, representations by MSME BMO/industry associations
iii. other, please specify _________________
f. Suggestions for improvement/additional requirement
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
[Names/addresses of significant parties - in this instance, sources of advice/help - should be

noted for possible subsequent interview.]
12. Status of previous interventions if any,

______________________________________________________________________________
______________________________________________________________________________
Financial Challenges
1. Among Formal Sources of financing, what is the percentage of each (in case availed)
a. Public Sector Banks -
b. Private Sector Banks -
c. NBFCs -
d. Others -Please specify -
2. Formal Sources of Finance for FY2020
a. Outstanding Working Capital Loan (WC)
b. Outstanding Term Loan
c. Total Bank Loan
d. Rate of Interest (WC)
e. Rate of Interest (TL)
f. Banks / NBFC Name
g. Own Funds
h. Borrowed from Family, Friends & Moneylenders
i. Other sources of Finance – Please mention
8. Do you have a current account in the name of the firm?
a. Yes
b. No
i. If No, please explain the reason (Not aware / don’t need it / expensive)
______________________________________________________________________
9. Do you avail any credit facility?
a. Yes
b. No
10. What is the nature of the credit facility?
a. Term Loan
b. Working Capital Loan
c. Term Loan + Working Capital Loan
d. Invoice Financing / bill discounting
e. Other - Please specify
11. What are the key reasons which prevents you from even applying for a loan from Bank/FI
a. lack of awareness of bank processes requirements

b. High Interest Rate
c. Longer Processing time
d. Improper documentation
e. No nearby bank branches
f. Others - Please specify
12. What is major source of credit demand
a. Raw Material
b. Salaries
c. Repair & maintenance
d. Long cash cycle
e. Demand due to peak season
f. duties and taxes
g. Others
13. Have you applied for a SME Credit rating with CRISIL, ONICRA, ICRA, SMERA, Brickwork, India
Ratings (earlier known as FITCH) or CARE?
a. Yes
b. No
c. Any Other, ________________
14. If you applied and tried for a loan over the last 12 months, what was the outcome?
a. Applied but the application got rejected

b. Applied and got the loan amount in full
c. Applied but only got partial loan amount
d. Applied but refused as interest rate offered was high
e. Loan approved after a significant delay
15. If the loan was rejected, what was the reason offered for rejection?
a. Substantial collateral not available or collateral was not marketable

b. Financial records / statements were not proper
c. History of operation of the firm was not significant
d. Problems with credit history or credit report
e. Required financial parameters were not achieved
f. Concerns about debt level
g. Others- Please Specify
16. Which type of loan process you will prefer?
a. Traditional - Where physical documents are collected and validated (offline)

b. Digital - Where entire process is done via digital channels (online)
c. Hybrid model - comprising of both physical and digital channels
17. What is the primary issue that deters you from even applying for loans to financial institutions?
a. Lack of awareness of different credit providers and Government schemes

b. Difficulty in understanding different types of credit support
c. Time and effort required in preparation of application
d. Complex Documentation
e. Other - Please specify
18. What are the type of handholding services you have used for availing loan?
a. Accessing Govt Schemes

b. Project plan preparation
c. Documentation finalization
d. Negotiating with the Bank
e. Others please specify
19. What are the key reasons for choosing your Bank?
a. Personal relationship with the institution
b. Interest rate offered
c. Collateral requirement
d. Location of the institution
e. Only option available
f. Have other products from this institution
g. Others- Please Specify
20. What type of Collateral was required by Bank for your loan
a. Land, buildings under ownership of the establishment

b. Machinery and equipment including movables
c. Accounts receivable and inventories
d. Personal assets of owner (house, etc.)
e. Third party Guarantee
21. Are you aware of Credit Guarantee support available from government
a. Yes
b. No
c. Aware but banks don’t approve
d. Reasons for not approving: ______________________________________________
22. Perception of loan processing and disbursement from the time of submission of final prepared
application (Choose from the following options for various FIs)
<2 weeks 2-4 weeks 4–6 6-9 weeks >9 weeks

weeks
a1 SIDBI-Term Loan
a2 SIDBI-Working
Capital
b1 Public Sector Bank-

Term Loan
b2 Public Sector Bank-

Working Capital
c1 Private Bank-Term
Loan
c2 Private Bank-
Working Capital
d1 Corporation Bank-
Term Loan
d2 Corporation Bank-
Working Capital
23. What are your product needs that are not being fulfilled by Banks currently? <Multiple Options>
a. Overdraft / WC
b. Working Capital Demand Loan
c. Collateralized Term Loan
d. Non-Collateralized Term Loan
e. Letter of Credit
f. Peak Season Working Capital / Incremental WC
g. Equipment Finance
h. Project Financing
i. Credit Guarantee for MSE
j. Bank Guarantee
k. Export Financing
l. Others- Please Specify
24. What are the reasons provided by Banks for non-availability or not providing these products?
a. _________________________________________________
b._________________________________________________
c._________________________________________________
25. For these following products please mention your key requirements / and current offer by Banks
# Requirement Received
1 Working Capital
2 Term Loan
3 Letter of Credit
4 Bank Guarantee
5 Others
26. What are your suggestions for banks to ease access of finance to cluster players?
_________________________________________________________________________________
27. Is the enterprise generating a surplus over costs, including a living income for the owners and their
immediate dependants? In real (inflation-adjusted) terms are this profit increasing or decreasing? Why?
28. Where do the owners (intend to) invest the bulk of the surpluses?
a. In expanding this enterprise. If so, in what manner? In other enterprises? If so, in which sectors?
b. In other types of investments (land, houses and other buildings, financial instruments, etc.)?
c. What is the reason for this investment pattern (in the enterprise/in other investments)?
29. What (if any) are the enterprise's main problems with sources and terms of either equity or credit
finance?
_________________________________________________________________________________
_________________________________________________________________________________
B. Financial Institutions (FIs)
1. What is your credit view on the Industry Cluster?
a. Positive
b. Negative
c. Neutral
d. Others - Please specify
2. What is the reason of your above credit view on the Industry Cluster?
_________________________________________________________________________________
3. What are the challenges of MSMEs in the Industry Cluster in getting credit? (more than one option)
a. Most of them are informal enterprises

b. Low Profitability / No Profitability
c. High Leverage
d. Poor quality of financial statements
e. Insufficient Collateral
f. Weak Credit Scores <SME Credit Bureau>
g. small loan size
h. Others - Please specify
4. Do you have appropriate credit appraisal model for this Industry cluster at a Bank level?
a. Yes
b. No
5. What are the key Credit Appraisal Criteria for MSMEs in this cluster? < Please mention top 4>
a.
b.
c.
d.
6. Are you offering non-collagenized loans to MSMEs in this Industry Cluster?
a. Yes
b. No
c. Please specify reasons if No
7. What is the exposure to MSMEs in Industry Cluster as a percentage of your overall loan book?
_________________________________________________________________________________
8. What is your view of credit demand in the Industry Cluster?
a. There is sufficient demand from credit worthy SMEs

b. There is not much demand from MSMEs
c. There is demand but they are not credit worthy
9. What are the percentage of defaulted units in the Industry cluster in your portfolio?
_________________________________________________________________________________
10. What is your view of Bank competition in this Industry Cluster?

a. Many Financial Institutions are lending to this cluster
b. A lot of Financial Institutions are present in Industry cluster but very few are lending
c. Mostly Public / Private sector banks are lending to this segment
d. Mostly NBFCs are lending to this segment
e. Mostly MFIs are lending to this segment
11. Who are the main players in financing in this Industry segment?
a. Small Finance Banks
b. Large Banks
c. Regional / Cooperative Banks
d. NBFCs
e. MFIs
f. Other Informal Networks
12. What is your outlook for lending in this industry segment?
a. Will increase
b. Wil decrease
c. Will remain stable
d. Please specify reasons
13. How can credit access be improved for SMEs in this Industry cluster?
_________________________________________________________________________________
14. In your view, are MSMEs in the cluster aware of govt. financing schemes like guarantee / others
etc?
a. Yes
b. No
15. What are the Banking products being offered to this Industry Cluster?
a. Only deposits
b. Cash Credit Limits
c. Term Loans
d. Bill discounting
e. Letter of Credit
16. Please indicate the most common reasons for rejecting loans in this Industry Cluster.
a. Project feasibility
b. Financial conditions of MSMEs
c. Lack of adequate collateral
d. Lack of business plan
e. Promoter Issues - Management Capability etc
17. What is the average loan value of Micro small and medium firm?
a. a1 Micro unit -term loan
b. a2 Micro unit -WC loan
c. b1 small unit -term loan
d. b2 Small unit -WC loan
e. c1 Medium unit -term loan
f. c2 Medium unit -WC loan
18. What is the average time of processing a loan to MSME?
a. less than 2 weeks
b. 2-4 weeks
c. 4-8 weeks
d. more than 2 months
19. If there is delay in repayment by MSME, what are the main reason of the same
a. Growth of business not as expected
b. Unable to track repayment schedule
c. Cash flow mismatch
d. Others
20. Details of FIs in the clusters – Nos. And Names
a. Public Sector Banks
b. Private Sector Banks
c. NBFCs
d. Corporation Banks
e. Others
21. What are the products that MSMEs in the Industry Cluster need but are currently are a gap with
your Bank/ other FIs?
C. Support Firms/institutes/service providers

1. Name and designation of respondent:
2. Name and address (telephone & email) of firm (or please attach a card)
3. Product typologies
4. Year of establishment
5. Ownership pattern: Proprietary/Partnership/Private Limited/Public Limited/No legal entity/Govt.
6. Status: Investment, turnover, number of pieces of products manufactured, number of machineries,
labour employed (own – who all, technical, non-technical, percentage female)
7. Business done with principal firms as part of total business
8. Business done with types of principal firms’ percentage wise
9. Changing composition with types of principal firms
Note: Business Relations with principal firms in the Cluster
[It may be appropriate to start discussion with reference to comments by SMEs on their relations with
the enterprise; enquire how the enterprise itself sees these relations; and let the discussion flow from
that point. This will be a useful tactic and will also provide the advantage of specifically cross-checking
the SMEs' remarks. However, the primary purpose of the interview is to discuss the topics below, insofar
as they are relevant to this large manufacturer.]
What is the basic business orientation of the enterprise vis-à-vis the SMEs in the cluster (customer,
supplier, technical partner)?
If supplier
1. What are the main items supplied to the SMEs?

2. Is this business expanding/diversifying?
3. How did it start, and how long has it been going on? What is its total sales value now?
4. Along with the core items supplied, what else is supplied (service, parts, advice, training, technical
assistance, credit, etc.?)? Are these "supplements" paid separately by the SMEs?
5. What, if anything, have the SMEs learnt - whether directly from the enterprise, or subsequently by
diffusion among themselves - from this business relation: has it helped them expand, diversify,
upgrade, increase their productivity, etc.?
If customer/technical partner
1. What are the main items and/or services sourced from the SMEs?
2. What is the main motivation for such sourcing (low costs, local supply, convenience, save on
enterprise's own investment, high quality, special MSME capabilities, etc.)?
3. How did it start, and how long has it been going on?
4. What is the annual total value of purchases now?
5. How is the business relation organized (enterprise-enterprise business, with small groups of
MSMEs, via association or sub-contracting exchange)?
6. How many SMEs in total are significantly involved?
7. Along with the orders placed by the enterprise, what else, if anything is provided (designs, advice,
training, equipment, technical assistance, materials, credit, etc.?)? Are any of these "supplements"
(partly) paid the SMEs?
8. What are the main problems experienced with sourcing from the SMEs, and how have they been/are
they being solved?
In either case (i.e. supplier or customer/technical partner)
1. Has there been any significant involvement of, or impact from, other parties in the development and
conduct of the business relation, which is not covered by the responses to the above (government
via taxation, local content, etc., policies; intermediary enterprises or agents, training or technical
institutes, banks, local authorities, training levy boards, etc.)?
2. What has been the nature of the involvement(s) or impact(s) has it been positive or negative, and
is it becoming stronger of weaker?
3. What can be done to intensify support or minimize hindrance? If better support implies deployment
of more resources, where would these come from?
[Names/addresses of significant parties should be noted for possible subsequent

interview.]
4. Does the enterprise have reasonably firm plans for further expansion/upgrading/diversification of its
business relations with the SMEs in the cluster or network within the next two or three years? What
is their essence?
5. Do these plans involve cooperation with third parties; and if so, which and how?
Other service provider/institute (e.g. Govt institute – NIFT, ITI, Packaging/design institute etc.)
1. What are the services provided by your institute organisation?

2. Detailed services (collect brochures),
a. Area, Infrastructure facilities, capacity, other facts
3. How many MSMEs/industries/firms do you cater to annually on an average?
4. How many job orders/work orders/trainees etc. catered to by you?
5. Fee structure
6. Popular services availed
7. Challenges faced while providing services to MSMEs/firms etc.
_____________________________________________________________________________
_____________________________________________________________________________
8. Suggestions on improvement of services
_____________________________________________________________________________
_____________________________________________________________________________
9. Any up-gradation requirement
_____________________________________________________________________________
_____________________________________________________________________________
Common infrastructure facility (Eg. CFC, testing lab, trade centre)
1. What are the services provided by your institute organisation?

2. Detailed services (collect brochures),
a. Area – no of blocks, facilities area
b. Infrastructure facilities – type of machinery, equipment, investment undertaken, level of
sophistication
c. No of trainers, staff
d. Capacity of the centre – trainees, job orders (annually/ per day) etc.
e. Other facts – no of shops, display units etc depending type of facility
f. Revenue model, funding in case any
3. How many MSMEs/industries/firms do you cater to annually on an average?
4. How many job orders/work orders/trainees etc. catered to by you?
5. Fee structure
6. Popular services availed
7. Challenges faced while providing services to MSMEs/firms etc.
_____________________________________________________________________________
_____________________________________________________________________________
8. Suggestions on improvement of services

_____________________________________________________________________________
_____________________________________________________________________________
9. Any upgradation requirement
_____________________________________________________________________________
_____________________________________________________________________________
BMO (Business Membership Organisation) / Industry Associations
(Speak with one office bearer and one office respondent)
Name of Association:
Name/Position of Respondent:
Location:
Sectoral and Geographical
Coverage:
Estimated No of MSME Members:
Estimated No. of Other Members:
Estimated No. of Paid Staff:
Estimated No. of Unpaid but
Active Officials:
Approximate Annual Revenues:
Approximate Total Assets:
Form of Organisation:
Date Established:
Recent Development:
2. Business Relations with and Services to principal firms in the Cluster
[It may be appropriate to initiate discussion with reference to comments by SMEs on their relations with
the association, services provided by it, etc.; enquire how the Association itself sees these relations and
services; and let the discussion flow from that point. This will be a useful tactic and will also provide the
advantage of specifically cross-checking the SMEs' remarks. However, the primary purpose of the
interview is to discuss the topics below, insofar as they are relevant to this association.]
What are the main services the association provides to the SMEs in the cluster?
Production, Technology, and Training
• Common service facilities (specialist production; testing)

• Information and/or training on new technologies/processes
• Providing consultancy or R&D facilities
• Technical skills upgrading
• Business and management training
Markets and Marketing
• Arranging contacts with large manufacturers/buyers

• Securing and allocating orders from these
• Providing new designs or information on design sources
• Providing market information, e.g. export requirements, subcontracting exchanges
Infrastructure
• Negotiating for land access, industrial estate sites, etc.

• Providing or arranging for premises or serviced land
• Providing or arranging other common services (waste disposal, telecommunications, electricity, etc.)
Finance
• Promoting and/or managing savings and loans programmes

• Helping with credit applications to banks, etc.
• Providing credit guarantees
Other
• Bulk purchasing
• Business consultancy, help with business plans, etc.
• Meetings with national and local governments on policy issues (taxation, protection under contracts,
zoning, electricity supply, tariffs, etc.)
Concentrating on the main effective services, as perceived by the MSME informants themselves and/or
the interviewer, for each such service:
• How did it start and develop, and how long has it been going on?
• How many MSMEs in the cluster use it regularly?
• How do they pay for it (if they do)? Does it, overall, pay for itself?
• In providing services, does the association work with other actors (e.g. large enterprises, training or
technical institutes, government)? And if so, how (technically, financially, etc.)?
• What are the main problems, if any, associated with the service (technical, financial, logistical,
organizational)?
• Do the customers have suggestions for upgrading or expanding the service? If so, which? Are they
realistic?
• Have any private enterprises started providing similar services, prompted by the association's
example?
[Names/addresses of significant other parties should be noted for possible subsequent

interview.]
• Does the association have literature (brochures, periodic or special reports, videos, etc.) providing
further information on any of these main services, or on their extent and impact?
[If so, take or borrow copies to provide further input to the cluster diagnosis]
▪ Does the association have reasonably firm and fundable plans for further
expansion/upgrading/diversification of its services to the SMEs in the cluster or network within the
next two or three years? What is their essence?
• Do these plans involve cooperation with third parties; if so, which and how?
Our offices
Ahmedabad Hyderabad
22nd Floor, B Wing, Privilon THE SKYVIEW 10
Ambli BRT Road, Behind Iskcon 18th Floor, “SOUTH LOBBY”
Temple, Off SG Highway Survey No 83/1, Raidurgam
Ahmedabad - 380 059 Hyderabad - 500 032
Tel: + 91 79 6608 3800 Tel: + 91 40 6736 2000
Bengaluru Jamshedpur
12th & 13th floor 1st Floor, Shantiniketan
“UB City”, Canberra Block Building, Holding No. 1
No. 24, VittalMallya Road SB Shop Area, Bistupur
Bengaluru - 560 001 Jamshedpur – 831 001
Tel: + 91 80 6727 5000 Tel: + 91 657 663 1000
Ground Floor, ‘A’ wing Kochi

Divyasree Chambers 9th Floor, ABAD Nucleus
# 11, O’Shaughnessy Road NH-49, Maradu PO
Langford Gardens Kochi - 682 304
Bengaluru - 560 025 Tel: + 91 484 433 4000
Tel: + 91 80 6727 5000
Kolkata
Chandigarh 22 Camac Street
Elante offices, Unit No. B-613 & 614 3rd Floor, Block ‘C’
6th Floor, Plot No- 178-178A Kolkata - 700 016
Industrial & Business Park, Phase-I Tel: + 91 33 6615 3400
Chandigarh - 160 002
Tel: + 91 172 6717800 Mumbai
14th Floor, The Ruby
Chennai 29 Senapati Bapat Marg
Tidel Park, 6th & 7th Floor Dadar (W), Mumbai - 400 028
A Block, No.4, Rajiv Gandhi Salai Tel: + 91 22 6192 0000
Taramani, Chennai - 600 113 5th Floor, Block B-2
Tel: + 91 44 6654 8100 Nirlon Knowledge Park
Off. Western Express Highway
Delhi NCR Goregaon (E)
Golf View Corporate Tower B Mumbai - 400 063
Sector 42, Sector Road Tel: + 91 22 6192 0000
Gurugram - 122 002
Tel: + 91 124 443 4000 Pune
3rd & 6th Floor, Worldmark-1 C-401, 4th floor
IGI Airport Hospitality District Panchshil Tech Park, Yerwada
Aerocity, New Delhi - 110 037 (Near Don Bosco School)
Tel: + 91 11 4731 8000 Pune - 411 006
4th & 5th Floor, Plot No 2B Tel: + 91 20 4912 6000
Tower 2, Sector 126
Gautam Budh Nagar, U.P.
Noida - 201 304
Tel: + 91 120 671 7000
Diagnostic Study Report of Chakchaka Bamboo and Cane Cluster 158

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Diagnostic

Diagnostic Study Report of Chakchaka Cane and Bamboo Cluster, Barpeta 1

Small Industries Development Bank of India (SIDBI),

Diagnostic Study Report of Chakchaka Cane and Bamboo Cluster, Barpeta 2

Diagnostic Study Report of Chakchaka Cane and Bamboo Cluster, Barpeta 3

We would like to express our sincere gratitude to Small Industries Development

Diagnostic Study Report of Chakchaka Cane and Bamboo Cluster, Barpeta 4

ARTFED Assam Apex Weavers & Artisans Co-operative Federation Ltd

ASI Annual Survey of Industries

ASRLM Assam State Rural Livelihood Mission

BDS Business Development Services

BDSPs Business Development Service Providers

BMO Business Membership Organisation

CAGR Compound Annual Growth Rate

CDE Cluster Development Executive

CDP Cluster Development Programme

CFC Common Facility Centre

CLCSS Credit Linked Capital Subsidy Scheme

CSR Corporate Social Responsibility

DC Handicrafts Development Commissioner for Handicrafts

DIC District Industries Centre

DICC District Industries & Commerce Centre

DPR Detailed Project Report

DSR Diagnostic Study Report

GDDP Gross District Domestic Product

GDP Gross Domestic Product

GSDP Gross State Domestic Product

GSVA Gross State Value Added

GVA Gross Value Added

HRD Human Resource Development

Diagnostic Study Report of Chakchaka Cane and Bamboo Cluster, Barpeta 5

IIE Indian Institute of Entrepreneurship

KVIC Khadi and Village Industries Commission

MFIs Microfinance Institutions

MSME Micro, Small, Medium Enterprises

MSME-DI MSME Development Institute

MUDRA Micro Units Development and Refinance Agency

NIC National Informatics Centre

NID National Institute of Design

NSDP National State Domestic Product

PMMY Pradhan Mantri MUDRA Yojana

RGVN RashtriyaGramin Vikas Nidhi

SBI State Bank of India

SFURTI Scheme of Fund for Regeneration of Traditional Industries

SIDBI Small Industries Development Bank of India

SMEs Small & Medium Enterprises

SPV Special Purpose Vehicle

SWOT Strength, Weakness, Opportunities, Threats

UAM Udyog Aadhar Memorandum

USA United States of America

USD United States Dollars

Diagnostic Study Report of Chakchaka Cane and Bamboo Cluster, Barpeta 6

22 December Incorporation of Ilina Talwar

Diagnostic Study Report of Chakchaka Cane and Bamboo Cluster, Barpeta 7

Executive summary ...............................................................................................................................14

Diagnostic Study Report of Chakchaka Cane and Bamboo Cluster, Barpeta 8

Diagnostic Study Report of Chakchaka Cane and Bamboo Cluster, Barpeta 9

Figure 1: Cluster Map ............................................................................................................................ 14