CLUSTER

REPORT
MAHESHWAR
 A B ST R AC T

The Maheshwari Cluster has been one of the major Handlooms of India.
It has been growing with the upcoming of the Rehwa Society which has
helped many workers get their livelihoods. There are about 130 workers
who are an active part of this society & have put their hardwork in
making the Maheshwari handloom a success. There has been an
introduction of E-Commerce for the Maheshwari Cluster which
increased their sales but also led to an increase in the copying and
replication of their designs. After many attempts there is still a lack of
recognition and knowledge about the Maheshwari Cluster. In this report
a Business E-Commerce Model has been proposed which will help in
Intellectual Property Rights, Company and Brand official Registration.
This will eventually get the Maheshwari Cluster get the recognition it
deserves due to which sales and overall growth will incease.

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 INTRODUCTION
1.1 History of Maheshwari Handloom
Maheshwar, a small ancient town which is the capital of Malwa lies near the banks of
river Narmada. It has been a major hub of handlooms since the 5 th century. Under the
regime of Rani Ahilyabai Holkar in 18th Century; the Maheshwar saris came into
existence. The royal family of Holkar’s readily encouraged the craftsmanship of the
maheshwar sarees. An exclusive nine yard sari was always presented as a gift to those
who visited the royal palaces of Rani Ahilya Bai. For this, a special team of craftsmen
who belonged to Surat, Varanasi, Chennai and Malwa were employed to design this
nine yard long graceful garment. The red turbans for traders, yellow ones for the army
men and the royal saris were produced to be gifted to the peshwa kings’ royal
household and nobilities were specially commissioned. The saris originating from the
town were named after the town itself. The Queen Ahilya Bai herself designed the very
first sari which became a huge hit in the royal circle. The designing being unique, with
exquisite motifs derived from the architecture, carvings and striped pallu personified
the gracefulness of Rani Ahilya Bai. This led to rigorous production of the saris and
them becoming very much popular in the women of the state of Madhya Pradesh
among all ages.

Fig. 1 The view of Ahilyabai Holkar Fort from across the Narmada River

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Maheshwar Weaving: belonging to a small town located in the west Nimad district
of the state of Madhya Pradesh, the Maheshwar weaving became prevalent in the 2 nd
and 3rd century BC. The township of Maheswar is known to be the home of production
of the most exquisite Maheshwari Saris. The whole civilization of weavers was
encouraged to settle near the township and the cultural heights of this famous weaving
were achieved only during the rule of Rani Ahilya Bai who patronized the art of weaving
Maheshwar saris. Along with gifting the town of maheshwar; an amazing art of
weaving Maheshwar saris, Rani Ahilya Bai, who was a worshipper of lord Shiva, adorned
the town with many beautiful building, several public works, temples, a fort the
riverfront Ghats. The Maheshwar fort became the major source of creativity for the
weaving techniques, motifs inspiring the weavers via the detailing of walls and niches of
Maheshwar Fort.

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1.2 Inspiration

The design of the famous sari which was to be prepared for the royalty was inspired by
the engravings on the fort walls. The borders come as Zari Patti, Kahar Kinar, Chatai
Kinar, Bugdi Kinar, Bajuband Kinar, Rui Phool Kinar, Phool Kinar and so on. Weavers
from Surat worked under the reign of Rani Ahilya Bai for making this fabric for royalty.

Fig. 2 Motifs on the Ahilyabai Fort

Till date the motifs of this weaving art remains geometrical and the design repertoire
remains traditional. The most common ones include chatai (woven mat pattern),
heera (diamond pattern) and chameli ka phool (Jasmine flower pattern). Subtle
colours are used to make these elegant saris of cotton and silk –blends whilst creating
a variation in the warps and wefts of the fabric. Elaborate borders, uncomplicated
patters and subtle colours are the focal point during the creation of these personified
elegant royalties. The saris contain exotic motifs done in zari and pleasing colours,
both inspired by the hues and forms in nature.

Fig.3 Motifs on the Maheshwari Sarees 4

1.3 The Weaving Process

Originally made of pure cotton, with the modernization, the saris began to be
produced using pure cotton threads and yarns or with a mixture of silk and cotton
(silk yarn in the warp and cotton in the weft). Wool is also being utilized in the
production of Maheshwari saris nowadays.

The weaving process of this beautiful motif adorned saris are a tedious task. For
making these nine-yard Maheshwari saris, mainly two types of handlooms are
used. The older pit looms which are heavy and fixed and the newer versions of
frame loom which have lightweight metal frames and are more popular nowadays.
Fine cotton yards contained in its weft and silk in its wrap makes the saris very light
in weight offering utmost comfort even during summer.

The fabric is light and airy which makes it perfect for Indian weather. Be it weft or
warp, the thread has to be free from tangles and stretched to make them tighter for
the weaving. Big motorized charka is generally used for the wrap and a small hand
drove charkha is used for the weft for making bundles of small rolls and bobbins. It
is then passed on to the master weavers when the yarn is dyed and untangled.

Fig. 4 Dyeing of yarn before the weaving process

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 Fig. 5 Detailed view of the Maheshwar pallu

The Maheshwari sari is not made by one person or a particular community, the
entire town is involved in making these nine-yards of Royalty. The fabric once
ready, is dyed with natural colors.

Colors & Embroidery: Maheshwari saris which

were initially produced only in the darker shades like
red, maroon, black, purple and green; nowadays are
also being made in lighter shades and the use of zari
with gold and silver threads are very much in the
designs. In local dialect, the most popular colors used in
Maheshwari sarees are Angoori (grape green), Dalimbi
(deep pink), Gul Bakshi(magenta), Jaamla (purple),
Tapkeer (deep brown), Aamrak (golden), Rani(deep
pink), Dhaani (green) and Kaashi (light purple). Usually,
natural vegetable dyes are used in the preparation of
these saris. Zari, gold and silver threads and gemstones
are used to further embellish the Maheshwari saris
adding shimmer in the designs. Nowadays gold and
silver threads are replaced with artificial threads and
the zari thread is replaced by a cheaper copper coated
nylon wire.
Some special features of the sari make this weave and
design to stand out from others. Understating the
elegance, sophistication in its charm and the glossy
finish given by a natural luster make this sari an
absolute favorite at any occasion for women of all age.

Fig. 6 Maheshwari Saree

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Done in bright colors like maroon, pink, mauve, violet, red, magenta, yellow, green
and blue, the pallu is the center of attention and make the sari exceptional. The pallu
contains five alternative stripes, two white and three colored ones. The sari is mainly a
plain fabric with geometrical designs or decorative motif borders. Sometimes the sari
contains checks or stripes in it with the motif designs derived by the local architecture,
flowers, and leaves.

The art of weaving Maheshwari Sari

dates to about 1500years back. It
was after Independence, that the
Maheshwari handloom industry saw
a major downfall. The traditional
Royal art of intricate hand woven
textile was dying as the weavers
were left without a market. In the
hopes to revive this dying craft of
weaving in 1979, a non-profit
organization named as the “Rehwa
Society” was established by the heirs
of the royal Holkar family of
Maheshwar with the grant of Central
Welfare Board.
Today, this fabric is highly in demand
by the topmost fashion designers
worldwide. To keep this art alive
various consistent efforts are done
by the government in the form of
schemes and benefits which will also
encourage weavers to work and also
keep alive the tradition by passing on
their knowledge to the next
generation, Today, Rehwa is
associated with the major brands
like Fabindia, Good Earth, hello India,
Anokhi, Abraham & Thakore, and
many more.
Fig. 7 Weaving Process of the Maheshwari Saree

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1.4 Current Scenario of Maheshwar Weavers

Maheswar weavers are putting their hard work in the production of these beuatiful
saris but still conditions aren’t improving for them because of all these problems:

• Exploitation by the middlemen

• Poor market reach
• Bad health and lack in education facilities
• Lack of alternative livelihood
• Poor civic amenities
• Broken government infrastructure

Fig. 8 Stretching of yarn

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 1.5 E-Commerce in India
The e-commerce has very easily transformed the way business is run in India. The
e-commerce market in India is expected to grow to US$ 200 billion by 2026 from
US$ 38.5 billion as of 2017. The growth of the industry has been amazingly
increasing due to the usage of internet and the smartphone penetration. As of
September 2018, the digital transformation ongoing in the country is likely
expected to increase India’s total internet user base from 560.01 million to 829
million by 2021. The internet economy in India, majorly backed by e-commerce is
expected to double from US$125 billion as of April 2017 to US$ 250 billion by 2020.
A jump in India’s E-commerce revenue is expected from US$ 39 billion (2017) to
US$ 120 billion (2020), growth estimated at an annual rate of 51 per cent, the
highest in the world.

The launch of 4G networks along with rising smartphone penetration and an

increase the consumer wealth, the Indian e-commerce situation is expected to
change to US$ 200 billion by the year 2026 from US$ 38.5 billion in 2017. Online
retail sales in India has shown a growth rate of 31 per cent touching US$ 32.70
billion in 2018. The leading e commerce like Flipkart, Amazon India and Paytm Mall
have aided to the situation.
During 2018, apparel was the second biggest contributor with a share of 29 per
cent to the online retail sales in India with the electornics topping the list with 48
per cent.

Fig. 9

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Some of the initiatives have been made by the Indian government regarding the e
commerce in India
• Under the Digital India movement, government launched various initiatives like
Udaan, Umang, Start-up India Portal etc.
• Under the project ‘Internet Saathi’, the government has influenced over 16
million women in India and reached 166,000 villages
• Udaan, a B2B online trade platform that connect small and medium size
manufacturers and wholesalers with online retailers and also provide them
logistics, payments and technology support, has sellers in over 80 cities of India
and delivers to over 500 cities.
• According to the UN’s eGovernance index, India has jumped 11 positions to 107
in 2016 from 208 in 2014.
• The government introduced Bharat Interface for Money (BHIM), a simple mobile
based platform for digital payments.
The micro, small & medium enterprises (MSME) in India are directly being impacted
by the e-commerce industry which is providing them means of financing,
technology and training with a favourable effect on other industries as well. An
upward growth trajectory has been observed in the Indian e-commerce industry and
there is an expectancy that India will surpass the United States to become the
second largest e-commerce market in the world by 2034. digital payments, analytics
driven customer engagement, hyper-local logistics and digital advertisements are
some of the technology enabled innovations which will likely support the growth in
this sector. A boost in employment, increase revenues from export, increase tax
collection by ex-chequers will be seen due to the growth in e-commerce sector,
leading to better providing of products and services to customers in the long-term.

fig. 10 Datailed view of the loom

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1.6 E-commerce in Indian Handloom
• An e-commerce portal named TRIFED and an E-commerce portal called ‘Tribes
India’ were launched by the Government of India which enabled about 55,000
tribal artisans to get access to the international markets.
• The limit of foreign direct investment (FDI)was hiked by the government of India
in the e-commerce filed in order to increase the participation of foreign players.
The hike was up to 100 percent (in B2B models).

Fig. 11 Spools of white weaving threads

Total handloom handicraft e-commerce business turnover in India

An estimate value according to data in Feb 2017, the market size of this sector in India
was recorded around $5 billion dollars annually.
E-Commerce presents a great marketing platform to all the domestically produced
products. With the total worth of US $ 100 billion, the Indian handicraft industry has a
market share of India is 1.2% across the globe. Carpets, wood ware, paintings, bamboo
products, marble sculpture, bronze sculpture, leather products, zari goods,
embroidered goods and jewelry are few of the most desired handicraft products from
India.
Tie ups of the Department of Handlooms and Textiles, Government of India with nine
e-commerce players and about 70 retailers have been done to increase the reach of
handlooms products in the Indian market.
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The top e-commerce websites
which engage in handloom &
handicraft and their turnover
• In March 2018, Textiles ministry
engages 21 e-retailers for handloom
items.
• As on December 31, 2017, these web
portals had generated handloom sales
of Rs 9.54 crore in the current
financial year. This figure was Rs 7.07
crore in the corresponding period of
2016-17, and Rs 1.06 crore in 2015-16.
Thus, more than Rs 17 crore of sales
of handloom products have been
generated since 2015, the minister
added.
• Amazon India expanding its footprint
in India’s Handloom Industry has now
added pure handloom and handicraft
items of Weavesmart – an online
handloom store supported by the
Government of India – on its platform.
Weavesmart stores more than 20,000
products which will now be made
available to millions of Amazon
customers, as per the media
statement.

Fig. 12 Maheshwari Saree

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1.7 Handlooms and Maheshwar Cluster
Maheswar cluster can be seen as a traditional skill-based cluster with
traditional artform. Adopting a holistic approach to meticulously integrate with
digital tools and connectivity in each segment of the ecosystem, it can enjoy
the sustainable economic and cultural transformations as well. A lot of
government initiated and various private labels also work on the e commerce
sector of Maheshwari saris. Although there haven’t been much benefits
coming from the same and the workers have been living in the same bad
conditions.
Master artisans of Maheshwar still work on an average profit margin of 5%-
20% despite putting all their hard work. This is because the brands take almost
all the profits and people of Maheshwar end up living in almost similar
conditions. The end customers aren’t in their reach on their own. For example,
a sari with the production costing of about INR1000 goes to the brands for INR
1100-1200 eventually to be sold to the end customers at INR2500-INR4000
depending on the brand. This problem of middleman who takes away
maximum profit can be solved through the direct reach to the customers i.e.
Retail. As physical retail willnot be feasible to the master weavers since it
requires a lot of capital; hence e-commerce retail is the only option which
poses as a practical and beneficial wayout to the Maheshwar master artisans.
They can set up a collaborative e-commerce channel or a separate e-
commerce channel since it is not that costly.

Fig. 13 Weavers working on the looms

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LITERATURE REVIEW

•  A study on the spatial structure of Maheshwar , IPS Academy INDORE: With

the advancement of architecture and urban planning as a vital measure of
growth. The advancement of semi-rural states should be looked upon for the
overall growth of the country. The town of maheshwar is culturally rich and has
a lot of scope for growth. In this report the physical, physiological and urban
impact of heritage of Maheshwar on the present development was looked upon.

• Ecommerce in India: Handloom & Handicraft Market , Ekta Singh:  Rise in the
usage of the internet is expected to lead to huge growth in ecommerce specially
for the handloom sector.  The e-commerce market of handicraft handloom and
industry is not in a great situation as per the current scenario, There are lot of
upcoming opportunities for the e-retailers. The craftsmen should think about
take their products on a global level.

• Indian Weaving Industry, Indian Mirror: Indian weaving industry provides

employment to a large fraction of the Indian population. The approx. number is
12.5 million people, thus making this industry the largest employment provider
for the rural workforce. A growth of 25% is expected in this section of creation
of work for the rural workers.

• Handlooms Are Dying , The Wire: The Indian handicrafts and handlooms are
dyeing because we have failed to protect them . Poor implementation of
protection policies over the years again and again and the popularity of power
loom has led to this slow downfall of the weaving sector of India.

• Analysis of E-Commerce -Advantages, Limitations and Security issues: Now

that e-commerce is on the rise there are a lot of other aspects that should be
looked upon like the security in the online payment etc. E-commerce security
is basically the protection of e-commerce assets from unauthentic access,
usually resulting in a loss.

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RESEARCH METHODOLOGY

3.1 Objectives
• To study the present scenario of retail for the weavers of Maheshwar
• To provide a business plan for e commerce , it’s introduction and implementation .

3.2 Research Design

Qualitative Descriptive research design is a scientific method which involves observing
and describing the behaviour of subjects of a specific area without influencing it in any
way. It focuses on discovering the nature of the specific events under study.

3.3 Research Scope

• Data has been collected from a single craft cluster of Maheshwar
• Interviews were taken from the groups of local weavers
• The research has been done in a short period of time.

Fig. 14 Workers at REHWA Society

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3.4 Data Collection Method
Primary data has been collected only for the purpose of understanding the needs
and the present situations of retail buying and selling in the maheshwar craft
cluster.

3.5 Sampling Technique

Personal interviews of the local weavers of maheshwar have been taken. The
interview was approximately given by 5 to 6 artisan groups.

3.6 Limitations
• Sample Size - The interviews have been taken is small selective groups because of
convenient sampling; this will eventually lead to inaccuracy in the results. Smaller
sample sizes do not represent the entire population which causes errors such as
large variability, biasness or uncoverage.
• Interview profile-interviewees of the research do not comprise of various profiles
due to time constraint.
• Time - Due to the time limitation, it was not in our favor to cover all the possible
points which were required in the research report.

Fig. 15 Weavers weaving at their home Fig. 16 The weavers start at young age

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 E-COMMERCE
M o d e l f o r M a h e s h w a r We a v e r s

MAHESHWAR WEAVERS CAN USE B2C

(Business to Consumers) e-commerce model to avoid
middlemen and to increase their profitability)

MAHESHWAR
MASTER ARTISAN

SUPPLIES

ORDER
PROCESSING

E-COMMERCE
CUSTOMERS MARKET
PLACE
ORDERS

E-commerce model for Maheshwar master weavers

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STEPS FOR SETTING UP ONLINE BUSINESS:

1. Company Registration
Company registration is the first step of starting any online business. Most of
the master weavers are already registered as sole proprietors or in a
partnership firm. So, they don’t have to worry about this step. However the
steps are given below if a new entrepreneur want to register himself as a
sole proprietor. Sole Proprietorship is the easiest form of business done in
India since it isn’t governed by any specific law. Under sole proprietorship
firm, the compliances are minimal and easy to manage.

To register a sole Proprietorship, the following documents are required:

• Aadhar Card
• PAN Card
• Bank Account
• Registered office proof
Although sole proprietor doesn’t require any specific registration, still
master weavers are advised to obtain a few registrations to make this
business function smoothly.
• Registering as SME
• Shop and Establishment Act License
• GST Registration

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2. Brand Registration
It is mandatory step to register your brand under which you want to sell your products,
Maheshwari sarees in this case. Trademark registration of the brand name means nothing
but brand name registration. It means, “this brand name is yours and if anybody try to copy
it to sell their products, you can take legal actions against them!”
In India, you can trademark any of the following or even a combination of these things as
your brand name: Letter, Number, Word, Phrase, Logo, Graphic, Smell, Sound Mark or a
Combination of Colours.

PROCEDURE OF REGISTERING A TRADEMARK

Step 1: Search for a brand name - Maheshawar master artisans can come up
with a brand name which can represent Maheshwar and Maheshwar products. Before
narrowing it on one name, you might want to do a quick search to make sure it is not
already taken.

Step 2: Making the trademark application - Now that brand name is

finalized , fill in the trademark application i.e. Form- TM 1. The application costs only INR
3500 .Along with the application, a couple of supporting documents are need to be
submitted:
1. A Business registration concern: Depending on what type of a registered business you
have, say sole proprietorship, etc. (mentioned earlier) you will need to submit an identity
proof of the directors of the company and an address proof.
2. An image of your brand logo in a standard size of 9 cms x 5 cms.
3. If required, proof of claim of the proposed mark being used before in another country.

Step 3: Filling the brand name registration application - It can be done

by manual filing or e-filing. In case of manual filing, you will need to personally go and
submit the application for registration to any one of the offices of the Registrar of Trade
Marks located in Mumbai, Delhi, Kolkata, Chennai and Ahmedabad. After which you
receive the acknowledgement of the application and the receipt, usually within 15-20 days
of the filing. Manual filing isn’t advisable to master artisans. They can use e-filing instead.
In e-filing system, the acknowledgement of the application is issued immediately and after
you receive the acknowledgement, you can start using the (TM) symbol next to your brand
name.

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Step 4: Examining the brand name registration application -
After receiving the application, the Registrar will check whether the brand name
complies with the law and does not conflict or dispute with other registered or
pending brands. That’s why, unique brand names are required.

Step 5: Publication in the Indian Trade Mark Journals -

After examination, the logo or brand name will be published in the Indian Trade
Mark Journal. If no one raises any opposition within 3 months of applying i.e. 90
days or in some cases 120 days, from the date of publication, the brand name will
be proceed to acceptance.

Step 6: Issuance of the trademark registration certificate -

If no one raises any opposition, within the stipulated 90 days period of time, the
Registrar accepts the trademark application and issues a Certificate of Registration
under the seal of Trademark Registry.
You may now be allowed to use the registered trademark symbol (®) next to the
brand name, once the certificate has been issued by the registrar.

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3. Costs involved in online selling
Selling online in India or in any other country, involves various costs. It’s
important to first find out if you can make good profits after considering all
those costs. Some of the important costs are:

• Shipping Cost – Visit your nearest courier or shipping company and find out
how much it would cost to ship your product in various parts of India. Make a list of
states and shipping fee. Normally this cost hovers between 5% to 15% of the product
cost depending on the size and weight of the product. E-commerce portals charges
INR30-100 depending on the order destination. For Maheshwari products it is less
than 10%.

• Packaging Cost – Depending on the type of product you are planning to sell,
you will need to consider the packaging cost. Check the different packing material
and calculate how much you will need for one product. Calculate the total cost per
product accordingly. Normally it’s around 0.5% to 2% of the product cost.

• Payment Gateway Cost – If you planning to setup your own store, you will
need a payment gateway. These sites normally charge between 1.5% to 5% of the
total transaction. There could be one time setup fee and recurring annual
maintenance fees. Last time when I checked, most payment gateway providers had
waived off these fees. You can negotiate the transaction fee if you have higher
volume. For e-commerce portal it is generally included in their overall margin which
is 15%-20% for everything.

• Storage Cost – Depending on the product, you might need to rent warehouse or

some storage space for your products. Find out this cost as well. Some online
marketplaces like Amazon let you use their warehouses at a small fee. For master
artisan it will not be an issue as they are already maintaining the inventory of their
products.

• Marketing Cost – Like any other business, you will have to tell the world that
you have arrived. Surely, there are free ways to promote your business but at some
point of time you will have invest in paid marketing channels. Google’s Ad Words is a
good platform to start with online ads and it also offers tools to calculate the costs.
E-commerce portals like flipkart, amazon and snapdeal offer their own marketing
services for additional 15%-20% or more.
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4. Product Photo shoots & Product Information
Assuming you passed the profit margin test, it’s time to take the next step. Master
artisans will need to create a list of products in a spread sheet. Later they will be able
to import that list to ecommerce marketplaces or self-hosted shopping cart. This list
should contain Product Code (or SKU), Product Name, Description, Category, Selling
Price, Discount (If any), Brand, Colour and other applicable attributes.
Once this is done, they have to take 3-4 good quality photographs of the product from
different angles, preferably in white background. Product images play a vital role in
online selling, so it’s recommended to take help from a professional. In this case, we
can get these photos from the interns from fashion communication students of NIFT
at very less cost and can help students with this also.

5. Registration on different E-commerce Platforms

All you have to do is to visit seller-registration pages of these portals (flipkart, amazon,
myntra, jabong & snapdeal etc.) by clicking on the links above and submit your
business details. You will need to keep VAT registration number, PAN number and
Bank details handy. Some sites need address proof as well. You can upload scanned
copies of these documents. Verification is completed normally in couple of days and
then business can be started.

6. Inventory & Business management

As master weavers will be dealing with inventory every day, it might become painful
to manage inward and outward stock movement manually for them. Start using
a good inventory management software to track their inventory. Some of the
software's even provide inventory sync option with your shopping cart or marketplace
account. They can lay out a process describing steps from getting an order to shipping
the goods.

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7. Be discoverable online
Your customers are more likely to search for your business before they make any
purchase. If they can’t find product reviews or any other information about your
business, they might drop off. So, it’s important to have online presence in the
form of company website, social media account on instagram, facebook or any
other channel.

8. Order handling
Customer places an order in your ecommerce system
Order details are extracted from your ecommerce system and entered into your
business software
Order is passed to the warehouse to be processed
Order is placed for fulfilment

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SWOT A N A LYS I S

STRENGTH
 Large, diversified and potential market
 Product variety and range is available because of diversified culture
 Strong, diversified and supportive retail inner infrastructure
 Techniques and beautiful designs
 Authenticity of the product
 Employment to a large number of people
 

WEAKNESS
 Lack of proper infrastructure and outside communication
 Unawareness about the international demands
 Lack of coordination between the government bodies and private
producers
 Lack of latest technology and designs in trend
 Still confined to rural areas, need to go global
 Lack of promotional activities

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OPPORTUNITY
• Rising demand if handicraft products
• Developing of sectors that require handicraft products
• Development of domestic and international tourism sectors
• Designers approaching the craftsman
• E-commerce and internet
 
THREAT
• Competition in domestic market
• Balance between the demand and supply
• Quality products manufactured through power looms
• Increased and better technology support
• Cheaper pricing by power looms

Fig. 17 The Ahilyabai Fort

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 C O N C LU S I O N
E-commerce is not simply the switching of one business model for
another. The positive impact of technology, expanded reach, lower
transaction costs and efficiency improvements lead to real economic
gains. Consumers are better off with greater variety and more
competitive prices. Maheshwar producers can experience greater
stability, increased reach and better competitive dynamics that drive
innovation. Simplification of domestic policies and processes to
enable Internet-based businesses are a vital first step. Strong, efficient
and highly competitive domestic e-commerce markets are essential.
This will help in on-boarding of a large number of sellers and more
sale per seller. It can prove to be a win-win solution for both the
buyers as well as Maheshwar suppliers. The marketplace can help
provide a strong sense of security to the buyers with the existing
institutionalized logistics supply chain offered by the e-commerce
planning and also offer safe modes of receiving the payments.

Fig. 18 The stock of dyed yarns

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 S U G G EST I O N S
• Maheshwar weavers can use e-
commerce portals flipkart, amazon &
snapdeal for the start and later on go
with jabong, myntra, ajio as they are
restricted e-commerce platforms.
• E-commerce business has some
technical aspects like Search Engine
Optimization (SEO), product ranking
etc. which can help grow business
much better.
• E-commerce business has some
negatives also like order returns,
packaging problems etc., so these
things should be planned and cared of
in prior.
• Product descriptions, photo shoots,
product handling, packaging are
crucial part of e-commerce business
and should be taken care of.
• Maheshwar weavers can select NIFT
students instead of professionals for
the work of content writing & photo
shoots etc. in order to save costing. It
will help both businesses and
students.
• Profit Margin= Selling price –
(Sourcing Cost + Packing & Shipping +
Transaction Fees + Marketing Cost + Fig. 18 Dyeing Process

Variable Costs)
• If your profit margin is positive, you
are good to go ahead and start selling
online. If it’s very low or negative, you
should think about minimising the
costs or shouldn’t start this business
model.
CASE STUDY

27
  
L I F E S K E TC H
NAME- GOVIND
PLACE- MAHESHWAR
MASTER ARTISAN
(MAHESHWARI SAREE)

Govind was born and bought up in

Maheshwar.
He could only complete his secondary
education as the bent was always on
learning the famous weaving techniques of
weaving.
 

His father along with his uncle were already into weaving business
in Maheshwar. His elder brother also joined the business from
childhood itself.
Govind moved to Surat to try his luck in other business but things
didn't work for him. After which he came back to maheshwar
in 2011 and joined his family business .He along with his
brother started managing this business. Currently
they have 30 weaving looms ,from which 20 are
set up in the homes of weavers so, that they
can work from their home. These looms are
set up by Govind & his Brother on their
expenses and hence are enabling people
to earn their livelihood. Most of the
business comes from wholesalers
& the annual turnover is
of around 1 crore.

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They work on a profit margin of around 20 percent for the wholesale orders. But the
period of money circulation is around 6 months & they also work on credit basis so it is
extremely challenging for them. They are not able to expand their business because of
such a long period of payment cycle.
Govind also tried ecommerce through his friend in which he sells his products through
a common website but is able to generate a turnover of 3- 4 lakh per annum only &
profit margin is 40 percent for the same. The website is maintained & run by his friend
& he doesn't have to give any input for this. Despite of a large scale in e-commerce he
has to settle for a turnover of Rs. 3 to 4 lakhs per annum only. As there is involvement of
a middle man, the profit gets divided leaving very little for the weavers who have
actually put in so much of hard work . So to solve this problem of middle men getting
involved into the whole process and thus reducing the profit. We tried to develop an
online business model for him and other weavers so that they are able to get maximum
profit without any manipulation .After the implementation of this proposed e-
commerce plan the local weavers of Maheshwar can expand and grow their business as
well as take pride in the glorious heritage of maheshwar and its weaved sarees.

Left to Right : Sachin, Ravi, Vrinda, Surbhi, Divya, Master Artisan-Govind

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REFERENCES
• http://www.fibre2fashion.com/news/textile-news/textiles-ministry-enlists-21-portals-for-handloom-sales-
240962-newsdetails.htm
• https://inc42.com/buzz/amazon-india-backs-govt-of-india-backed-weavesmart/
• https://www.thehindubusinessline.com/info-tech/handicraft-exporters-take-ecommerce-route-to-tap-domestic-
market/article6905096.ece
• https://inc42.com/buzz/amazon-india-backs-govt-of-india-backed-weavesmar/
• https://www.quora.com/What-is-the-best-website-to-buy-Indian-handloom-and-handicraft-items
• https://www.livemint.com/Industry/N9i3R5ExZpSBIhtuS0CCQJ/Indias-fashion-eretail-market-to-touch-35-
bn-by-2020-Goo.html
• http://brlp.in/documents/11369/1132127/Report+on+Analysing+the+Scope+for+JEEViKA+to+Sell+
HandloomHandicraft+Product+Online.pdf/412a20fb-78a3-4e6b-8c74-ac4b3c5cb170
• https://www.ibef.org/industry/ecommerce.aspx

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