CONTENT

CHAPTER PAGE NO
CHAPTER-1 PAGE NO
INTRODUCTION
1.1 ODISHA AND THE STUDY AREA
1.2 MEANING AND CONCEPT
1.3 IMPORTANCE OF THE TOPIC
1.4 ECONOMIC IMPACTS OF THE TOPIC
1.5. STATEMENT OF THE PROBLEM
1.6 OBJECTIVE OF THE STUDY
1.7 RESEARCH METHODOLOGY
1.8 CHAPTERIZATION
CHAPTER-2 PAGE NO
REVIEW OF LITERATURE
2.1 SYSTEMATIC REVIEW OF LITERATURE
2.2 RESEARCH GAP( NON-EXPLORATION STUDY)
CHAPTER-3 PAGE NO
STUDY AREA, STUDY METHODOLOGY AND DATA COLLECTION
3.1 STUDY AREA
3.2 STUDY METHODOLOGY
CHAPTER-4 PAGE NO
DATA ANALYSIS AND INTERPRETATION
4.1 IMPORTANCE OF HANDICRAFTS
4.2 HANDICRAFT TYPES
4.3 CHANGING PATTERNS IN THE APPLIQUE CRAFT OF PIPILI
4.4 MAKING PROCESS
4.5 APPLIQUE CRAFTS ITEMS
4.6 MARKET POTENTIAL
4.7.DATA ANALYSIS

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 4.8 FINANCIAL ASPECTS
4.9 WORKING CAPITAL ANALYSIS
CHAPTER-5 PAGE NO
MAJOR FINDINGS OF THE STUDY
CHAPTER-6 PAGE NO
SUMMARY, CONCLUSION & SUGGESTION
6.1 SUMMARY
6.2 CONCLUSION
6.3 SUGESSTIONS

*****

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Page | 3
INTRODUCTION
Skill development has never been in the discourse across the country as it has been in the
last few years. It stems out of the realization that the skill base in the country is not
strong and India will not be able to reap the benefits of its demographic advantage if this
area is not strengthened. As per the Annual Report to the People on Employment
(Ministry of Labour, Government of India, 2010), it is estimated that only 2 percent
persons in the age group of 15-29 years having received formal vocational training and
around 8 percent reported to have received non-formal vocational training, indicating
thereby that higher proportion of youth population actually enter the world of work
without formal vocational training. In order to enhance the employability of the youths,
concerted efforts have to be made to enhance the skill development infrastructure in
Skill development has never been in the discourse across the country as it has been in the
last few years. It stems out of the realization that the skill base in the country is not
strong and India will not be able to reap the benefits of its demographic advantage if this
area is not strengthened. As per the Annual Report to the People on Employment
(Ministry of Labour, Government of India, 2010), it is estimated that only 2 percent
persons in the age group of 15-29 years having received formal vocational training and
around 8 percent reported to have received non-formal vocational training, indicating
thereby that higher proportion of youth a manner that all those who enter the labour force
acquire relevant skills beforehand. Odisha has gradually evolved as a knowledge-based
economy due to the abundance of capable and qualified human capital) With the
constantly rising influence of globalization, Odisha has immense opportunities to
establish its distinctive position in the world. However, there is a need to further develop
and empower the human capital to ensure the nation's global competitiveness. Despite
the stress laid on education and training in this country, there is still a shortage of skilled
manpower to address the mounting needs and demands of the economy. As an
immediate necessity that has arisen from the current scenario, the government is
dedicatedly striving to initiate and achieve formal/informal skill development of the
working population via education/vocational education/skill training and other upcoming
learning methods. The skill development of the working population is a priority for the
government. This is evident by the exceptional progress India has witnessed is to expand
on outreach, equity and access to education and training, which it has aimed to fulfill by
establishing several industrial training institutes (ITIs), vocational schools, technical
schools, polytechnics and professional colleges to facilitate adult leaning,
apprenticeships,

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 sector-specific skill development, e-learning, training for self-employment and
other forms of training. The government therefore provides holistic sustenance
through all its initiatives in the form of necessary financial support, infrastructure
support and policy support.

1.1. ODISHA AND THE STUDY AREA:

The state of Odisha (earlier called Orissa) was established in the year 1936.
There were 13 districts which were increased to 30 in the year 1992. It is the
ninth largest and eleventh most populated state of the country with a population
of three crores of which more than 22 percent are tribals. The state has over
51000 villages. Its official language is Odia but there are several dialects. The
state shares boundaries with Jharkhand in the north, West Bengal in the north-
east, Chhattisgarh in the west and Andhra Pradesh in the south.
The climate of the state is hot and moist. The state is also prone to natural
calamities flood, cyclones and drought which have caused a lot of damage to the
people. The state has ample natural resources. The landscape has forests, lakes,
rivers and rich flora and fauna. The landmass is 1, 55,707 sq km. It has an
uninterrupted coastline of about 480 km and a mountainous area in many
districts. Almost one third of its land is covered with forests. Odisha is known for
its rich culture, art and craft. The Jagannath temple, Konark and Simlipal wild
life sanctuary are some important and well known tourist destinations.

FIGURE: MAP OF ODISHA

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1.2. MEANING AND CONCEPT:
MEANING:
Skill development means a process which enables trainees and the
working age people to gain access to dexterity, knowledge and ability, career
ethics and good working attitude by skill training, establishing skill standards,
and other relating activities.
DEFINITION:
Skill Development is for determining the skill gaps and overcome them.
Skills are required to define one's ability and this ability is the sole reason behind
the successful implementation of plans.

1.3. IMPORTANCE OF THE TOPIC:

This study on handicraft industry assumes a great significance from the
point of view of generating huge self employment opportunities. This handicraft
industries has also great significance in contributing to the country's GDP.Pipili's
applique handicraft products commands great significance in European market
and other western countries all over the world. Hence study of this applique
handicraft industry has great importance in finding out problems, issues and
challenges associated with growth of this sector in the state of Odisha.

1.4. ECONOMIC IMPACTS OF THE TOPIC:

It is important to understand that knowledge doesn't guarantee skill,
practice does. Theory knowledge can give an imaginative structure but only
practical knowledge can give a real exposure. Books are sufficient to throw light
through someone else thought process but if you need to create own empire
student need to come out of their comfort zone and implement their knowledge
into the real world. This study on handicraft industry assumes a great
significance from the point of view of generating huge self employment
opportunities. This handicraft industries has also great significance in
contributing to the country's GDP.Pipili's applique handicraft products
commands great significance in European market and other western countries all
over the world. Hence study of this applique handicraft industry has great
importance in finding out problems, issues and challenges associated with
growth of this sector in the state of Odisha.

1.5. STATEMENT OF THE PROBLEM:

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 The statement of the study was followed to arrive at the incremental
demand-supply gap in. Along with data analysis some key policies related to the
state were also examined to get a perspective about the future growth plans. The
Handicraft sector is highly creative sector and produces large variety of crafts
products. This industry is localized segment of the domestic and international
market. In Odisha the production of craft products are done on both large and
small scale. Because of low capital investment people can start their business on
small scale. Through this flexibility the demand and supply can be managed.

1.6. OBJECTIVE OF THE STUDY:

i To study the skill development in Pipili Handicraft in the state of Odisha.
ii To describe the changing
patterns in the appliqué craft of Pipili.
iii To identify the current and future skills requirements and estimate the gap.

1.7. RESEARCH METHODOLOGY:

The study is based on secondary data, which have been collected from
different journals, papers, bulletins, magazines, annual reports and through
internet also. They have been analyzed with the help of important table and
graphs. Therefore the data have been interpreted accordingly.
1.8. CHAPTERIZATION:
This study is organized with Six chapters from introduction to conclusion
parts.

The 1st Chapter is the introductory section comprising meaning and

Concept, importance, economic impacts, significance of the study, objectives of the
study, research methodology of the study and the chapterization. The 2nd chapter deals
with Review of Literature. The 3rd Chapter deals with study area and methodology of
data collection. The 4th chapter emphasize the Data

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Analysis and Govt. initiatives. The 5th chapter emphasize the Major Findings of the Study.
Lastly chapter six concludes as well as summarizes all the chapters and
provides suggestions for having policy implications and References.

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 CHAPTER-2
2.REVIEW OF LITERATURE:

2.1. SYSTEMATIC REVIEW OF LITERATURE:

For conducting any research in a scientific manner, a comprehensive and
systematic review of literature is a pre- requisite. A reference to the previous
study provides guidelines not only to frame some overarching research questions
to be explored in the proposed research theme but also a critical review of the
earlier studies provides a great deal of scope to systematize logical presentation
of facts without much ambiguity. In order to make the research question, the
research methodology and the scientific research, in general, many a literature
relevant to this field is studied and assessed critically. It gives wider knowledge-
base to work with, besides, facilitating a systematic and smooth presentation.
Mohapatra, (1987) in his book has given a clear picture about Orissa and focuses
on the Orissa handicrafts elaborately.
Rao, (1990) in his book "Marketing of Handicrafts" observed that "Handicrafts
offer solution to India, which is characterized by unemployment and foreign
exchange crunch"
Mitra's (1980) book "The Antiquities of Orissa" has been the earliest reference
about the craft. Among other aspect of Orissa antiquities he has briefly dealt with
the patta painting. He has said that the painters are a hereditary sub caste of
Chitrakaras and that most of the pictures painted on cloth are produced in Puri
itself.
Chattopadhyaya, (1963) in her book " The glory of Indian Handicrafts" has
vividly described about handicraft of different states of India. National Institute
for Social Development and Applied Research, Bhubaneswar hasdone a research
work on technology, firm size and performance of three popular crafts of Orissa.
Kannungo, (1964) in "Utkalana Chitrakara" (the art and craft of Orissa) has
briefly describes the patta painting as one of the old paintings is typical in its
style where the theme basically depicts the religious tradition of India. It is
closely associated with the culture of Jagannath.
Mention may be made of "The Philosophy behind temple art of Orissa by Panda,
(1986), "Kansaris of Orissa" by Mohanty, (1980), "Traditional Patta Paintings of

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Orissa" by Mohapatra, "Architectural Wealth of Orissa" by Parida etc. All the
above books and articles are no doubt eye openers to many who are ignorant
about the aesthetic and cultural richness of different handicrafts practised in the
state of Orissa.
Samal, (1994) has done her research work in "Applique craft tradition of Orissa
and change".
Upadhyaya in the book "Economics of handicraft industry" feels that without
design development, technology advancement and quality improvement, we
cannot think of healthy growth of such industry. It has been agreed in responsible
quarters that even in the field of handicrafts a certain amount of mechanization
ought to be introduced in order to obtain the two-fold objective of better finish
and rationalization.
Bharati, (1973) in an article "Eastern India Handicrafts: A Preliminary Survey"
published in Floklone a journal of anthropology states I just from lines that the
tailor artists of pipili have become specialized in giving gorgeous look to their
appliqué works.
Ahmed, (1980) in his book entitled "Problem and Management of Small Scale
and Cottage Industries" expresses that the satisfactory performance in marketing
of handicrafts could be possible due to the special interest taken by central as
well as state governments to boost up the export of handicraft articles.

Panda, (1984) in "Textiles" of Arts and Crafts of Ganjam Districts, Orissa says
that the appliqué craft is of 500 years old. The history of appliqué is
commensurable with operas, festivals and processions.

2.2. RESEARCH GAP (NON-EXPLORATION STUDY):

After reviewing the above mentioned published literature I find that no
research or study is made and conducted on applique work of Pipili. Hence, I an
attempt to explore this unexpected area of appliqué handicrafts industry in Pipili.

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 CHAPTER-3

STUDY AREA, STUDY METHODOLOGY AND DATA COLLECTION

3.1. STUDY AREA:
My study area is Pipili and the data is about applique handicraft industries in
Pipili. The village of Pipili is well known for its appliqué work. Appliqué comes
from the French word appliquer, meaning "to put on".
Puri has a very wide and distinctive selection of handicrafts. Best
known is probably the gorgeous applique work of Pipili. Pipili is on the way
from Puri to Bhubaneswar. It is 40 kilometres from Puri, at the junction where
the konark road branches from the Bhubaneswar to Puri road. It is a small
village. On the main road at Pipili there are many shops selling Applique work
products, tourist visiting Puri buy these products from Pipili. It is famous in
Odisha as well as in India for it's applique craft. Each and every family of the
village engaged themeselves in this applique craft.

3.2.STUDY METHODOLOGY:
DATA COLLECTION:
The study is based on secondary data, which have been collected from
different journals, papers, bulletins, magazines, annual reports and through
internet also.

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 CHAPTER-4
DATA ANALYSIS AND INTERPRETATION

4.1. IMPORTANCE OF HANDICRAFTS:

Handicraft sector occupies a prime position in the economy of India. It is
the largest employer, next only to agriculture. The sector, while providing
livelihood for thousands of artisans, provides avenues for realization of social
and cultural potential of millions of people. The mythological, religious, social,
historical and artistic expressions in crafts symbolize the strengths of Indian
heritage while combining in these crafts both utility and beauty. High
employment potential, low per capita investment and high value addition,
involvement of women and weaker section, ecofriendliness and the potential to
stimulate creative talents make the sector one of the most preferred sectors in the
process of economic development.
India which consist of a variety of ethnic traditions and culture, is also a
treasure house of handicrafts. Exquisite handicrafts using diverse raw materials
are produced in different parts of the country. This include art metal ware, wood
ware, hand printed textiles and scarves, applique, leather crafts, pattachitra, hand
knotted and embroidered goods, shawls as art ware, stone carvings, zari and zari
goods, imitation jewellery, filigree and miscellaneous other handicrafts. One of
the unique feature of the handicrafts is that more often the same item of the
handicraft, produced in different regions, are different from each other in terms
of the craftsmanship, style, colour combination and finish.

4.2. HANDICRAFT TYPES:

India is rich in handicrafts. There are about 3500 handicraft items produced in
the country and the sector employs 60 lakh artisans who work independently or
in small co-operatives or firms. Similarly Government of Orissa has identified
and approved 49 categories of handicrafts which employ more than one lakh
artisans. These crafts have been divided into four groups in terms of
development potential as follows:
i. Crafts with high development potential
ii. Crafts with declining development potential
iii. Languishing craft
iv. Newly emerged craft

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 There are two variants to this technique: appliqué, where a fabric shape is
sewn over a base layer, and reverse applique, wherein two layers of fabric are
laid down, and a shape is subsequently cut out from the upper layer, exposing the
lower layer, before both are stitched together. It is one of the product who have
got Geographical Indication (GI) by govt of India (Application No. 86 and 108).
Most of the people of the village depend on this applique craft for their
day to day life. Applique, a French term, is a technique by which various cutting
pieces of coloured fabrics are applied to the surface of another foundation fabric.
Applique works of Pipili is also known as patching cloth design and in local
language this handicraft is known as ‘chandua’.

Chhatris(umbrellas) that bear magnificent appliques and designs of great artistic

skill are manufactured at pipili and Puri. It is a hereditary craft. Brightly coloured
patches of fabric, cut into animal and flower shapes, are sewn onto bed covers,
cushions, wall hangings etc. The art form typically depended on four basis
colours, red, white, black and yellow to produce a striking effect. In recent years,
green too has been applied vigorously enlivening the craft even more.

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 Any type of worship or sacrificial work is incomplete without pipili
chandua. Canopies, chhatries and tarasas made in applique process are
increasingly finding place in festivities. In every religious geity be it the car
festival or the minor event of festive, shamiana or the canopies are displayed
significantly. Wide scale use of shamiana are seen in the various festival of Lord
Jagannath. Since the Lord's rituals are more of the nature of the daily routine of
human being, fan, umbrella of applique work are in rampant use to save the deity
from the scorching heat of Sun or the rough weather. In chandan yatra the entire
procession is taken out displaying and covering the deities with chattris of
applique work. Further, the chandua another marvel of applique work has
become a household commodity in almost every religious work.

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 Besides used in the religious function, with the touch of a little modernity,
garments of varied designs are also made with it. Ladies item like frock, blouse,
purse, handbags etc. are in great demand among tourists. Screens of bigger size
with applique touch are also been made depicting the different characters of
religious myth for interior design or decoration of houses.

4.3. CHANGING PATTERNS IN THE APPLIQUE

CRAFT OF PIPILI:
The applique craft of pipili is an attractive
product in the world handicraft market. Pipili, the
small town situated on the golden triangle,
Bhubaneswar- Puri Konark, attracts the tourists,
who stop for a while at Pipili.) Very often guides
are heard persuading tourists: 'Here is something
for you to carry as a token of remembrance for
your visit to Orissa." Applique works of Pipili,
filigree works of Cuttack, horn works of Cuttack
and Parlakhemundi and patta paintings of
Raghurajpur are offered as objects of gift by the
people of Orissa. Jagannath Pattanaik, a leading
historian of Orissa, dates the origin of the
applique works to 850 years back. The process of making the products remained
unchanged for the past few centuries but during the last two to three decades, the
applique products and their style have undergone a tremendous change. Darjis
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who make this craft for generations, now attribute two reasons for such change
in the applique works. The first reason is the changing taste of the customers and
the second is the commercialization of the products. Most of the Darjis are of the
opinion that it is the customers who are primarily responsible for bringing about
change to the traditional applique works. They are of the opinion that when the
very survival of the applique work owes it to the tourists, it is rather the choice of
the tourists that has imposed a change on the products and its making style.
Customers want the products to be cheaper and attractive. Artisans go for more
profit, at times ignoring the quality.
Among the traditional applique
work, Chandua, Chhati, Trasa, Alata, Adhoni,
Mandant and Bana, used at the time of Dola
Jatra for deities are quite well known. The use
of all these products are associated with the
religious ceremonies. But there are some other
products which are prepared for the domestic
and individual use. Two such products are
Batua and Pasa-Pali. Since betel is commonly
chewed in Orissa, a special type of bag called
Batua is prepared to carry betel leaf and the
accessories.It is very much popular among the
tourists from Eastern parts of the country. Pasa
Pali or the dice-mat is another popular ancient
products sold among the natives.
All these products are fast disappearing from the applique market.
Instead, wall hangs, garden umbrellas, lamp sheds, cushion covers and letter
bags are now prepared as they are very much in demand by the tourists. Several
tourists have special choice for monochrome art, for which monochrome garden
umbrellas are prepared. Attractive motifs like Surya Mukhi Parrot, Dancing
Peacock, Elephant are gradually getting withdrawn and more of monochrome
and patch work is now in use.
It may appear reasonable that it is either the changing choice of the
customers or the commercial attitude of the artisans or may be, the combination
of both, that has brought about a radical change in the traditional work. But
perhaps there is another factor, which is more responsible for bringing about a
change in the traditional and classical applique works. Applique works, which
was a secondary source of income for Darjis for centuries, has become their
principal source of income today. Earlier, applique work gave them subsidiary
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income by prouding them part-time engagement. All the principal applique
products were used for religious purposes and during festivals. Rest of the year
Darjis were earning their livelihood by way of mending umbrellas and mattresses
moving in and around the township. Now as there is a growing demand by the
tourists for more of the utilitarian products. Darjis are engaged full-time with
their entire family and it became their principal source of income. The cost of
labour and the return for investment have diverted their attention from the
classical work to commercial work.
Earlier, locally prepared colour used to be added to the white cloth
and applique products were prepared. But these days applique products are
prepared out of coloured cloth. As a result, cheaper cloth is used and at times due
to the nonavailability of suitable matching colored cloth in the local market,
traditional works are suspended and alternative new products are prepared.
Competition amongst the artisans, use of low quality inputs and use of
readymade and machine made items have often brought down the standard of the
work. It is now slowly drifting from cottage industry to small scale industry.
Something exceptional in the market that may be liked by the tourists initiated
change in the applique works. It is now seen that every day some new product is
exhibited on the forewall of the showroom to attract tourists. Since most
products are common in the market, some artisans take pain to create new
products with a sole aim of monopolising the item for getting more profit by
fixing the price at his own accord. But after some days the same product is
copied by others and it becomes available in all the shops. With this process, new
products appear in the market, which disappear after a brief spell.
Although, the applique craft of Pipili is undergoing a change,
octogenarian artisans still prefer to produce antique and classical work. With the
demand for more of utilitarian products, changes may come but principal
applique products like Chandua, Chati and Trasa will continue to live as it is
associated with religion and culture. Pipili has earned a name because of the
famous applique works.

4.4. MAKING PROCESS:

PROCESS-PIPILI APPLIQUE WORK
The specially prepared motifs may be coloured or white. The base cloth
is usually coloured. Some of the specially prepared motifs have exclusive
embroidery work and some have mirror work. In heavy canopies, a backcloth for

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 strength additionally supports the base cloth. Appliqué items are also being used
in combination with other handicrafts to produce composite products.

STITCHING PROCESS:
The stitching process varies from item to item and come under six broad
categories Namely:
1. Bakhia: It is a simple running stitch which is used either for keeping the
patches in position temporarily on the base cloth till they are finally stitched to it.
2. Taropa: Under the stitching process the appliqué patches are stitched with the
base cloth where the edges of the patches are turned in and then stitched. In the
process the stitch is almost concealed underneath the patch.
3. Ganthi: The Ganthi stitch that is similar to blanket stitch and buttonhole stitch
is used for attractive embroidered motifs.
4. Chikana: The chikana stitch that is also called chain stitch is popular in
appliqué work. It is an embroidery stitch built up by looping of threads and is

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used in binding the edges of the appliqué patch without turning, as well as for making textual
and ornamental effects on motifs.
5. Button hole: The buttonhole stitch is used for mudias (rings) fixed to large
canopies for hanging and for fixing round-shaped small mirrors pieces for
decoration. It is similar to blanket stitch although the needle is inserted form
outer edge in this stitch.
6. Ruching: The ruching stitch is used for gathering a strip of cloth to make an
appliqué motif like malli.

It is a simple running stitch which is used either
for keeping the patches in position
temporarily on the base cloth till their finally
stitched to it.
Under the stitching process the applique
patches are stitch with the base cloth where
the edges of the patches are turned in and
then stitch. In the process the stitch is almost
concealed underneath the patch

4.5. APPLIQUE CRAFTS ITEMS:

PRODUCT DIVERSIFICATION:
The growing demand of the Pipili appliqué craft and the recent trends has
prompted the Artisans of Pipili to go for product diversification. As a result, the
artisans and the master artisans are able to include some new products into the
appliqué craft. The artisans are producing new products like Bed cover, Cushion

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 cover, Sofa cover, T.V. cover, Refrigerator cover, Door screen, Round gate, &
Flat gate (used on festivals like marriage for decorating the Pandals), etc. The
consumers from domestic and external market are also appreciating these
products.
FAMOUS ITEMS:
1. Chattri (Traditional Umbrella): Chattri is a traditional umbrella used specially
for festivals and religious processions.
2. Alata: It is generally used for the religious purposes for decorating and using
as manual fan for the Lord Jagannath and other deities.
3. Troas (Tarasa): It is used during the religious procession of lord Jagannath and
other deities.
4. Batua: Batua is a unique Orissa cloth pouch that has usually a semi circular
shape with the top being straight.
5. Lamp Shade: The most admired & popular product of the artisans of Pipili is
lamp stand.
6. Jhalar: It is another popular item sort of frill, which is used as boarder to
canopies and also independently used as decorative pieces.

Chattri is a traditiona umbrella used It is generally used for the religious

specially for festivals and religious purposes for decorating and using as
procession manual san for the Lord Jagannath
and other deities

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4.6. MARKET POTENTIAL:
Applique works are decorative items and are used in decorating walls,
covering instruments, household articles, luxurious goods etc. Those appliqué
works have nowadays good export demand. They are produced by export
craftsman and using sewing and zigzag machines. Most of the works are done by
hand and the market demand is good due to its handicraft designing.
Though most of the appliqué works are concentrated in Pipili and
surrounding areas of Puri district but the demand is felt every wherein common
market of Orissa and outside Orissa. Some skilled workers are nowadays
preparing other varieties of appliqué works in Bhubaneswar, Cuttack and other
towns. These items like Chandua, Screen cover, TV cover, computer cover, have
good demand in local market of Orissa and in neighbouring states. These items
are nowadays largely procured by tent house owners on large scale. The unit is
likely to be set up in nearby village of Choudwar which is about ten km away
from Cuttack. So the wholesellers of tent items in Pithapur, Choudhury bazaar,
will procure the prepared items and the unit will do good business in that respect.
Moreover, if required it can provide the products to export agents and can earn
more profit. Different kinds of clothes like velvet, silk, terrycot, cotton, polyester
are purchased from wholesale market and cut into pieces as per designing. These
pieces are sewed at their sides and then on it different figures or art are drawn by
tailor chalk. On that drawing different glazed items like fluorescent tin, foil,
coloured plastic items etc. are sewed by hand and cut pieces are tagged to draw
specific shape and specific design. Finally these items are washed and dried and
pressed. The technology differs from craftmen to craftmen depending upon the
designing and the way of applying the decorating items on it. Expert labour,

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 professional skilled workers are helpful in this line and they can train other
workers in this regard.
MARKET SEGMENT:
Handicrafts have been a traditional craft and the skill of making handicraft
has passed in families from generation to generation. Being an ancient skill it has
take traditional culture and religion a the subject for the depiction in the craft
forms. Our preliminary survey shows that handicrafts cover two important facets;
i. Predominance of the skill of hands.
ii. The products should be artistic and unique.
Though machines can produce large quantities of uniform products within
a short span of time, "hands" have won the time war. Handicrafts are produced at
lesser pace but it is a combination of artistic functional value.
Handicrafts have always been a basic activity in human society. Crafts are
an integral part of our life. Orissa offers a striking selection of decorative and
utilitarian art and crafts. The beauty and charm of its crafts has always been a
source of attraction to many Indian and Foreign tourists. Mainly the handicraft
items are used for interior decoration of houses in urban areas and as a symbol or
culture and tradition. Moreover, it was found that the handicraft items are mainly
available in urban areas for its demand by the urban household. Market segments
for handicrafts can be either put in term of Geographical boundaries or in terms
of categories of products or as per the buyers needs and requirements.
Geographical and products segments are however most commonly used for the
purpose of understanding the marketing 0f handicraft.

INTERVENTIONS SUGGESTED IN VARIOUS GOVERNMENT REPORTS

AND ALSO BY ARTISANS IN DIFFERENT FUNCTIONAL AREAS
In different functional areas such as production, marketing, finance,
design and development and training, attempt was made to compile possible
interventions as suggested by the government's Directorate of Handicrafts and
Cottage Industries in their various reports and also by the artisans. The
compilation is presented in Table.

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 Market

segment
Geographical Segments Product Segments

 MetalCraft/iron
craft(Art Metal Wares)
National marketing  Wood craft
products across the borders to  Fashion Jewellery
( it is marketing with the various other Export marketing
 Traditional
country) Textile
(marketing of countries) Items
 Furniture
and
Furnishing
 Lace &
Embroidery
 Alabaster &
Drafted
Stone
 Pottery/Eart
Intra state/regional Intra state/ regional marketing (
henware
marketing ( marketing of marketing of products in the  Products
product in the same same region on the same state  Miscellaneo
region on the same state in which they are made us Crafts
in which they are made)

Page | 25
INTERVENTIONS SUGGESTED BY AGENCIES AND ARTISANS:

Report of Report of Directorate of According to

Directorate of Handicrafts & Cottage Artisans (Based
Report of Industries (2004-2009) on Survey of
Directorate of (Action Plan) artisans by Dr.
Handicrafts & M. Dash)
Cottage
Industries 2003

To provide Craft wise Put the right

infrastructure documentation of price for each
support for existing tools and item.
improvement of analysis for the scope of
quality and further advancement Time period for
productivity. and applications. delivering the
Demonstration Cum product should
To ensure Learning Workshop. be in time.
participation of
all members Organizing exposure Artisans should
Production involved visits. make the
production product in such
Strengthening/creation a way every
of common Facility body will attract
Centres. towards it.

Govt. should
open shops for
raw materials.

Should be
scientific
quality control
for some crafts.

Page | 26
 To organise design Different and various
assistance Skill upgradation. new product and
programme. design should be
Organizing Training introduced.
To conduct for Master Craftsmen
demonstration and Institutional Design registration
programmes for Training. should be done.
the improved tools
Design and equipments . Design Development Govt. should set up
strong rule and heavy
To organise Test marketing of the penalties to copy of the
Design and product design.
Technical
Development Documentation and
Workshop Dissemination of
Design

To set up craft Organizing The Govt, should

schools and sensitization/Awarene arrange workshop for
training centres at ss Camp. maser craftsperson for
different places. design development
Training Adequate training to and make new product.
To organise artisans for sustained
training camps. self-employment.

To provide direct Organizing marketing Govt. should take

marketing facility events. necessary action
throughout the regarding the
year and eliminate Participation in Trade marketing problem.
the middle Fair/Exhibitions.
agencies. To open websites and
Marketing Developing business through advertisement.
To ensure effective linkage with govt.
participation of all marketing agencies. Marketing should be
members. properly organized.

Page | 27
 To ensure Developing Regular exhibition
effective increase number should be
participation of of market organized.
all members in complex
marketing.
Involvement of
private and
corporate house
for market
promotion.
To increase the Arrangement of Loan should be
capital base of finance for provided to the
handicrafts. S.H.Cs for artisan in time.
production and
Financial marketing. Loan at low
assistance for Linking to banks interest rate should
export for credit. be provided.
promotion
activities. Introduction of To provide capital
artisan credit to modernize the
card. craft.
To provide Daily wages of the
Finance financial artisan should be
assistance to old fixed by the
craft. government.

Sales tax should be

exempted by the
government on
some items
Should provide old
age pension to
crafts men.

Page | 28
 4.7. DATA ANALYSIS:
The various crafts , falling in different categories, are shown in Table.
TABLE:1
49 CRAFTS OF ORISSA STATE OF INDIA CLASSIFIED IN TERMS OF
INCREASING,DECREASING,LANGUISHING AND NEWLY EMERGING
DEVELOPMENT POTENTIAL

SI Crafts with SI Development SI Languishing SI Newly

NO. Development NO. potential in NO. Craft NO. Emerged
potential Declined craft
trend
1. Stone Carving 1. Wooden 1. Horn Work 1. Coconut
painted toys Shell
2. Brass and Bell 2. Artistic 2. Lacquer Work 2. Root Craft
Metal Footwear
3. Dhokra 3. Artistic Mat 3. Solapith 3. Straw
Casting Craft
4. Silver Filigree 4. Batik Printing 4. Bettle-nut 4. Carpet
Craft Weaving
5. Cane and 5. Cloth Flower 5. Art Leather 5. Artificial
Bamboo Bonsai
6. Applique and 6. Durry Carpet 6. Clay Toys 6. Soft Toys
Patchwork
7. Pottery & 7. Embroidery 7. Theatrical
Terracota Dress
8. Wood carving 8. Gopa craft 8. Paddy craft

9. Palm-leaf 9. Sea shell 9. Jai khadi

Engraving Works
10. Art Textiles 10. Keora Leaf

11. Tribal 11. Metal craft

Jewellery
12. Fiber craft 12. Palm leaf
Decorative
13. Coir craft 13. Paper Mache

14. Costume 14. Sabai Grass

Jewellery Craft
15. Gem stone 15. Wooden craft
processing
Page | 29
16. Golden grass 16. Zari works

17. Patta & Tasar

Painting
18. Jute craft

INTERPRETATION:
i. Handicrafts play very important role in representing the culture and
tradition of any country or region.
ii. n the above table it shows about classification in term of increasing,
Languishing and newly emerging development potential.
iii. The craft sector has the potential to provide a stable employment and
income generation opportunities to diverse communities.

4.8. FINANCIAL ASPECTS:

Fixed capital Investment:
Land and building: 2000 sq. ft. with 1000 sq. ft.shed
On rented basis Rs.3,000 PM
INTERPRETATION:
i. Investment on cottage and handicraft industries is very negligible in
last few years.
MACHINERY:
TABLE-2

Page | 30
S.no. specification No. & rate VALUE

1. Sewing machine foot operated (Usha make) 4 @ 3500 14,000

2. Sewing machine power operated (0.25 HP 1 @ 7000 7,000
motor) Usha
3. Interlock machine 10.25 HP 1 @ 14,000 14,000
4. Other necessary equipment like scissors, LS 5,000
equipments, etc.
5. Office furniture, cutting table etc. 10,000

6. Transport and installation of machinery. 2,000

52,000

INTERPRETATION:
i. The table reveals that the sewing machine (Usha Make) and interlock
machine half same value of Rs. 14,000 but the office furniture, sewing
machine (0.25 HP motor) transport machine take Rs. 10,000, Rs. 7,000,
Rs. 5,000 and Rs. 2,000 respectively.
PRE-OPERATIVE EXPENDITURE:
TABLE-3

Preparation of project profile 200

Transport/travel 2000

Stationery 500

Telephone 2000
Other necessary expr. 2000

TOTAL 6700

Page | 31
 Preparation of project profile
Transport/travel
Stationery
Telephone
Other necessary expr.

Fixed capital investment = 52,000+6,700 = 58,700/-

4.9. WORKING CAPITAL ANALYSIS:

RAW MATERIALS (P.M):
TABLE-4
Item Qty. & rate Value
Cloth 1500 meters @60/mt 90,000
(cotton,silk,velvet,etc.)
Cloth -cotton,terylene,etc. LS 5,000
Decorative item 10,000
(Electroplated
articles,shining
particles,etc.)
Packing items(polythene 2,000
bags)
1,07,000/-

INTERPRETATION:
i. In the above discussion cloth I used as highest raw material of Rs. 90,000 and
the packing is Rs. 2,000 which is very lowest cost and the another materials are
used cotton, terrylene of Rs. 5,000 and the decortion price is Rs. 10,000.
Page | 32
ii. Handicrafts play very important roles in representing the culture
and tradition of any country or region.
Crafts productions present an opportunities to otherwise low skilled, home-
based woman to improve their status within the household by providing a source
of earning and employment.
iv. The result shows that the skilled labours are 12,000, unskilled labours are
6,000 and the peons are 1,500. The total number of staff and labour are 17,500.
TABLE-5

Skilled labour 6 12,000

Unskilled labour 4 6,000
Peon 1 1,500
17,500

15,000

10,000

5,000

Skilled labour
Unskilled labour
peon

UTILITY:
TABLE-6
Electricity 400 KWH 1280
Water LS 100
1,380

Page | 33
OTHER EXPENDITURE(PER MONTH):
TABLE-7
Rent 3,000
Travel 1,000
Transport 2,000
Telephone 300
Advertisement 500
Stationery 500
Other misc.Expenditure 1,000
8,300

3,500

3,000

2,500

2,000

1,500 3,000

1,000 2,000

500 1,000 1,000

300 500 500
0

Working capital (per Month)

=1,07,000+17,500+1,380+8,300=1,34,180/-
Total capital Investment:
Fixed capital 58,700
Working capital (one month) 1,34,180
1,92,880
Cost of Production:
Total working capital 16,10,160

Page | 34
 Depreciation on machinery@10% 4,000
Depreciation on furniture@20% 2,000
Interest on invt.@12% 23,146
16,39,306
Turnover(per annum):
(Assuming 5% loss in cloth)
Different Applique work 17,280m.@100/m.(avg,rate)Rs.17,28,000
Net profit (per annum) = Rs.17,28,000-16,39,306=88,694/-

Profit x 100
Net profit ratio= =5%
Turnover
Profit x 100
Rate of return= =46%
Investment

BREAK EVEN ANALYSIS:

Fixed cost (per annum):
1.Total depreciation 6,000
2.Interest 23,146
3.40% salary 84,000
4.Rent 36,000
5.40% other expr. Except rent 25,440
1,74,586
FC x 100 1,74,586
B.E.P = = = 66%
FC + 100 2,63,280

Page | 35
INTERPRETATION:
i. The result shows that total expenditure (per month) Rs. 8,300, total cost
of production Rs. 16,39,306, turnover (per annum) 17,28,000 and the
break even analysis shows 66%.
ii. The results shows that, Net profit was 5% and ROR was 46% and Break
even analysis shows that 1,74,586.
iii. From the above analysis we found that marketing of Handicraft product
is a major bottleneck. Except marketing, the finance and labour shortage
and two other problem encounted by the handicrafts sector in the state.

Page | 36
 CHAPTER-5
5. MAJOR FINDINGS OF THE STUDY:
The following are the major findings which I have drawn from the
data analysis made in the previous chapter
i. The result shows that total expenditure (per month) Rs. 8,300, total cost of
production Rs. 16,39,306, turnover (per annum) 17,28,000 and the break even
analysis shows 66%.
ii. The result shows that the skilled labours are 12,000, unskilled labours are
6,000 and the peons are 1,500. The total number of staff and labour are 17,500.
iii. highest raw material of Rs. 90,000 and the packing is Rs. 2,000 which is very
lowest cost and the another materials are used cotton, terrylene of Rs. 5,000 and
the decortion price is Rs.10,000.
iv. The sewing machine (Usha Make) and interlock machine half same value of
Rs. 14,000 but the office furniture, sewing machine (0.25 HP motor) transport
machine take Rs. 10,000, Rs. 7,000, Rs. 5,000 and Rs. 2,000 respectively.
V. Handicrafts play very important role in representing the culture and traditions
of any country or region.
vi. Handicrafts are hugely important in terms of economic development.
vii. The crafts sector has the potential to provide a stable employment and
income generation opportunity to diverse communities.
viii. Crafts production presents an opportunity to otherwise low skilled, home-
based women, to improve their status within the household by providing a source
of earning and employment.
ix. Investment on cottage and handicraft industries is very negligible in last few
years.
X. The trend value and the value of coefficient determination show that the
growths of these industries have decreased significantly.
xi. From our study it is also found that marketing of handicraft product is a major
bottleneck. Except marketing, the finance requirement and labour shortages are
two other problems encountered by the handicrafts sector in the state.

Page | 37
 CHAPTER-6

SUMMARY, CONCLUSION AND SUGGESTIONS:

6.1. SUMMARY:
One of the most colourful handicrafts in Odisha is the appliqué work in Pipli
Crafts Village, located 40 km away from Bhubaneswar. The craft, locally called
Chandua, is related to the rituals and traditions of Lord Jagannath and his
siblings Lord Balabhadra and Devi Subhadra. Even as there is no history behind
the evolution and origin of appliqué work, it is believed to have started in the
17th and 18th centuries when clothes and decorative pieces were used in the
Jagannath Temple in Puri during religious processions.
Nowadays its usage is more in household, decorative and festival
products. The appliqué items are mainly used during rituals and jatras of the
deities, particularly the colourful appliqué cloth covers of the three rathas of the
deities during Rath Jatra. Apart from differences in colour the basic design of all
three is similar. Appliqué work is also used in making pillows, seats and ritual
dresses for the deities.

6.2. CONCLUSION:
Odisha is famous for its rich culture and tradition all over the world. At
the same time it has the reputation of being one of the poorest state in the
country. The handicrafts of Odisha are well admired and highly accepted in
national and international market. Unfortunately in recent time the handicraft
sectors are facing the challenges and their survival has become a question now.
The artisans who were depending upon the crafts for their livelihood are coming
under heavy pressure because of falling income. The artisans involved in these
trades are now found to be living a very distressful life . Many craftsmen fail to
get craft based employment round the year. Cottage and handicraft sectors are
symbol of Odisha's culture and tradition. Its survival is not only necessary but
also vital for many those who depend upon these sectors for their livelihood. The
state and the central government should come forward to help these sectors for
their growth and survival. These sectors have good market nationally and
globally, the only thing is, and they fail to project themselves. The government
should come forward to make the handicraft product globally competitive. The
state government should also go for developing different clusters for these units.
These clusters should be

Page | 38
 provided with marketing assistance and financial support. Time to time the
government should take steps to exhibit the product through trade fairs and
exhibition. It should be done locally and also at national and international level.
Numbers of units suffer for their poor financial health; steps should be taken to
revive these units through cheaper loan facilities. Subsidies, lower interest rate
and easy credit policy have a greater positive impact on these sectors. Labour
shortage is a major problem today due to migration of labour from the state to
neighboring states for the sake of better wages. This is creating labour shortage
and pushing up the wage. In recent time the different welfare policies made by
the government of Odisha is discouraging the people to do manual work. On the
other hand to work in these handicraft sectors some sort of skill is also required,
so the government should come forward to train unskilled people to learn these
trades to gain employment in these units.. In different ITIS in the state, the govt.
should open new training centers on filigree, pattachitra and appliqué. Training
should also be provided to the existing artisans for developing new designs and
innovative products to attract the customers and to compete with big business
houses. The handicraft sectors require a policy framework that will support the
improvement of their development potential.

6.3. SUGGESTIONS:
Following suggestions are recommended for the improvement and
growth of Handicrafts Industries in the state of Odisha and in India
I. Handicrafts are a substantial medium to preserve of rich traditional art,
heritage and culture, traditional skills and talents which are associated with
people's lifestyle and history.
II. India's rich cultural diversity and heritage provides a unique and huge
resource for developing craft products.
III. The Indian Handicraft Industry is showing continuous growth rate of 20%
every year.
IV. Handicrafts industry is one of the important segment of decentralized
sector in India.
V. There is lack of awareness about new traditions and among craftsmen and
there is need of technological support and training.
VI. Major parts of industry operates in rural and semi urban areas throughout
the country and has potential Indian and International market with around
67000 exporters to tap the market.
VII. There is poor promotion for craft products in national market.

Page | 39
 REFERENCES
i. Chandrasekhar. M, Marketing of handicrafts ,Indian publishers Venugopal . k
and Rao. R.and Distributors, Delhi. 1994
ii. Chattapadhya, Kamaladevi, The glory of Indian Handicrafts, Indian Book
Company, New Delhi.1996.
iii. Das, H.C., Glimpses of Orissa Art and Culture. Golden Jubilee Volume of the
Orissa Historical Research, Journal Vol - XXX (Nos-2, 3 & 4),1984.
iv. Directorate of Handicrafts and Status Report on Handicrafts, Government
Cottage Industries of Orissa., 1990.
V.Enarkshi, Bhavnani, Decorative Designs and Craftsmanship of India, Russi Jal
Taroporevala for D.B. Taraporevala Sons & Co. Pvt. Ltd, Bombay. 1964.
vi. "2011 Census: Odisha - Executive Summary" (PDF). Census of India.
Retrieved 25 May 2015.
vii. "Odisha GSDP to grow 8.78% in 2014-15: Economic Survey". Business
Standard. 16 February 2015.
viii. "Gross State Domestic Product (GSDP) at Current Prices (as on 31-05-
2014)" (PDF). Planning
ix. "Odisha Economic Survey. 2014-15" (PDF). Planning and Coordination
Department, Government of Odisha. Retrieved 25 May 2015.
MAGAZINES & JOURNAL:
Current Affairs
Business Today
Business India
WEBSITES:
www.google.com
www.wikipedia.com
www.moneycontrol.com
www.odisha.gov.in

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