Table of Contents
I
Executive Summary
1-4
II
Industry Scenario
5 -11
III
Historical Evolution of The Cluster
12 - 14
IV
Sketch Of MSMEs & Other Actors
15 - 23
V
Analysis of Business Operations
24 - 30
VI
Inter-Firm Industrial Organisation
31 - 37
VII
SWOT Analysis
38
VIII
Vision
39 - 41
Annexures
Annexure – 1
Cluster Map (Pre-Intervention)
Annexure – 2
Cluster Map (Post -Intervention)
Annexure – 3
Value Chain Analyses (Pre-Intervention)
Annexure – 4
Value Chain Analyses (Post-Intervention)
Annexure – 5
Case Study
I. Executive Summary
Bhagalpur is a divisional town of historical importance situated on the southern bank of the Ganga river. The
Bhagalpur. Weavers history traces back to over 100 years. It was a family tradition among the lower income
group of people to take up the weaving job.
There are about 30,000 (Approx) handloom weavers found in Bhagalpur, out of which 95% are
jobworkers with 25,000 Handlooms. The product mix being produced in Bhagalpur is as follows:
1 Sarees
2 Dress Materials (Salwar Suits, Dupatta,Kurta- Pyjama)
3 Home Furnishings (Cushion Covers,Bed Sheets,Curtains,Throws,Table Covers,Napkins, Runners).Out
of these majority of the products made are of Home furnishings (50%)& Dress material (35%)and
rest 15% are sarees.
The Raw material used in this cluster are tussar silk, Matka silk, Eri.Mulberry,Staple,Viscose & Chinese
silk.. The price fluctuation of most of the raw materials is on higher side.
The annual production of Handloom tassar silk is 200 MT, 50% of the silk Tassar fabric is being exported by
the exporters located in Bhagalpur, Kolkata, New Delhi and Mumbai. The balance 50% of the fabric is
converted into Sarees and other dress materials.
The total value of the trade from Bhagalpur cluster is around 100 crores annually and 50 % of the turnover is
from domestic market and the balance 50 % is from export market. The export of 50 crores annual turnover
is controlled by the exporters located in Bhagalpu, Kolkata, Mumbai and New Delhi and the remaining 50
crores domestic turnover is controlled by the traders.
Bhagalpur weavers are not having the access to the good printing, dyeing, designing facilities which are
required for the production of good quality product mix for export market as well as for domestic market.
Weaving is mainly dominated by male in Bhagalpur Women are not able to do the weaving job. Health
status of the weavers is poor. Some of the famous silk weavers of Bhagalpur face starvation and disease.
Due to the lack of infrastructural facility available most of the people are dying of malnutrition and hunger.
The support institutions in the cluster are the Weaver service centre (GOI),District Industry Centre (DIC
, GOB) ,Directorate of Handlooms (Industries Department, GOB),Central Silk Board.Exporters at Bhagalpur,
Kolkata and New Delhi,Designers at Bhagalpur,Indian Silk Export promotion Council,Financial Institution,Lead
Bank,Co-operative Banks ,NABARD. Except Weaver service centre the support to the weavers by other
institutions is very little.
The Value chain analysis of the cluster regarding the costing of Tassar Silk saree from the stage of silk
yarn then going through the process of dyeing, weaving , Finishing, dry cleaning and packing
is higly
uneven.
The Strengths of the Cluster are Traditional preference for silk saris by the higher income
group,Availability of skilled Handloom weavers,High demand of value added handloom silk sarees in metro
cities like New Delhi, Kolkata, Patna,
Weaknesses: highly unorganized Cluster,Inadequate infrastructural Facilities at Bhagalpur,Lack of upgraded
and improved Technology.,Irregular work for weavers.,Low credit from financial ,Lack of printing and dying
facilities,Costlier products can only affordable by higher income group.,Lack of strong market network for
domestic as well as international market.,Lack of latest design availability for value additional products.
The Opportunities are very good export potential for home furnishing value added made ups in the
selected overseas countries.,Brand building for Handloom silk value added products in the domestic market
as well as in the international market.Product diversification like that of home furnishing value added made
ups.&very large Indian market for branded silk products as the present high growth of retail sales in India .
The Threats are biggest threat from the power loom sector,that from silk products from china and Mulberry
silk products from Karnataka and other southern states, weavers are day by day taking up other profession
due to inadequate weaving job and wages.
Aseed’s Intervention strategy:
Technology: under technology approach there is a need for the up gradation and the use of improved
looms. There is great need for upgrading the technology for Dyeing. Instead of hand dyeing, they should
use chamber dyeing as in the case of most of the panipat.
Printing: in the area of printing proper training should be given to the master community facilitator in
screen printing, block printing, mud printing, offset printing, etc
There is also need to train the local designer teams in order to catch up fast changing fashion in every
season in the domestic market as well as international market..
Marketing: There is a need of creating awareness about the product of Bhagalpur silk at domestic as well
as at international side level. Brand building efforts will also be carried out.
There is also need for
organizing buyer seller meet in our country and abroad.
capacity Building: under capacity building approach there is a great need for developing the core skill and
capabilities of the selected 5000 handloom silk weavers.
Institutional Development: In order to develop the silk industry of Bhagalpur, there is a great need for
developing and coordinating the activities of the silk traders, Exporters, Bankers, Common bulk raw material
procurement and weavers in order to develop a strong institutional approach.
Information centre on the cluster will also be taken up in order to develop the silk industry of Bhagalpur.
There could be separate consortium for exporters , traders and other associated organizations who will coordinate each other to make the Bhagalpur cluster development a success.
By implementing above interventions with the help of DC, Handlooms, a definite growth can be achieved in
Bhagalpur cluster under Integrated Handloom Clsuter Development Programme
II. Industrial Scenario
Introduction about Silk:
Man is inquisitive of silk products. Silk as we all know is called queen of textile because of the shine and
glamour associated with it. The combination of these two (Shine and Glamour) have made silk popular to all
parts of India. Silk with his simmer and luster, no other fabric can match the quality of this rich fabric. Since
centuries mankind has loved this sparkling fibre of unparallel grandeur. Silk has faced many scary challenges
from the other fibres but it remained undoubted Queen of Textiles since Centuries. Chemically speaking, silk
is made of proteins secreted in the fluid state by a caterpillar, popularly known as ‘silkworm’. These
silkworms feed on the selected food plants and spin cocoons as a 'protective shell' to perpetuate the life.
Silkworm has four stages in its life cycle viz., egg, caterpillar, pupa and moth. Man interferes this life cycle at
the cocoon stage to obtain the silk, a continuous filament of commercial importance, used in weaving of the
dream fabric.
History of Silk:
Silk, what we called sericulture, has a long history. Some say that silk was first originated or discovered in
China about 10,000 years ago. In china people say that Empress Si Ling Chi of China discovered silk 5000
years ago. The history of silk is that Empress Si Ling Chi was sitting under the Mulberry tree in her palace
and she was taking her tea. A cocoon fell from the Mulberry tree in her hot tea cup and when she watched
strong white thread unraveled itself.
Types of Silk:
There are about 5 main types of silk found in India and they are as follows
1
Mulberry
2 Tasar
3 Muga
4 Eri
5 Matka
Mulberry Silk: Mulberry silk are found in the states of Karnataka, Andhra Pradesh, West Bengal, Tamil
Nadu, and Jammu & Kashmir. These four states accounts for 92% of the total Mulberry silk production.
Mulberry silk comes from Bombyx mori L silkworm, which totally feeds on the mulberry plant.
Tasar Silk: Tasar silk is mainly found in the states of Jharkhand, Chattisgarh and orissa besides
Maharashtra, west Bengal, and Andhra Pradesh. Tassar is copperish in colour and this silk is mainly used for
furnishing and interiors. Tasar silk is less shiny than mulberry silk, but Tasar silk has it own feel and appeal.
Oak Tasar: It is mainly found ion the state of the sub – Himalayan belt of India covering the states of
Manipur, Himachal Pradesh, Uttar Pradesh, Assam, and Mehgalaya, Jammu and Kashmir.
Eri silk : Eri silk is mostly found in the north eastern states and Assam. It is also found in the states of Bihar,
Bengal and orissa.Eri silk is mainy used for making chhadars.
Muga Silk : The Muga silk is golden yellow in colour. Muga silk is generally found in Assam so it is called as
pride of Assam. Muga silk is generally used in making products of Sarees and Chaddars. The name of the
silkworm from where we get muga silk is “ Antheraea assamensis “and the plants on which they feed are
Som and soalu .
Matka : Matka is generally found in the states of Bengal, orissa and karnatka. This fabric is formed mostly in
natural colour and can be used for home furnishing made ups.
Silk Industry at Bhagalpur cluster:
In Bhagalpur the weavers service centre (GOI) was established in the year 1974. with a view to developing
handloom silk industry in the state of Bihar. There have been partially successful in providing training to
weavers and in the area of designing, printing and dyeing.
There are about 30,000 (Approx) handloom weavers found in Bhagalpur and 25,000 Handlooms found in
Bhagalpur. The major product mix being produced in Bhagalpur are:
2 Silk Dress material.
3 Saree
4 Salwar Suits, Dupatta
5 Kurta- Pyjama
6 Cushion Covers
7 Bed Sheets
8 Shawls
9 Scarves
10 Curtains
11 Throws
12 Table Covers, Napkins, Runners
The production of Handloom tassar silk in the form of fabric is 200 MT annually, 50% of the silk Tassar fabric
is being exported by the exporters located in Bhagalpur, Kolkata, New Delhi and Mumbai. The balance 50%
of the fabric is converted into Sarees and other dress materials.
The total value of the trade from Bhagalpur cluster is around 100 crores annually and 50 % of the turnover is
from domestic market and the balance 50 % is from export market. The export of 50 crores annual turnover
is controlled by the exporters located in Bhagalpur , Kolkata, Mumbai and New Delhi and the remaining 200
crores domestic turnover is controlled by the traders .
The silk sarees produced in Bhagalpur were popular in the domestic market during 1970-90s. However the
saree industry gradually suffered a setback in production as well as in marketing these sarees in the domestic
market. The present share of the sarees is around 5% of the total market of the silk sarees in the country.
Presently the silk Sarees produced in the South like Kanchipuram, in Tamil Nadu and Dharmavaram in A.P ,
Banaras in U.P along with the specific brand like Nalli sarees have become very popular and captured the
market in India.
In the area of home furnishing made ups, Bhagalpur produces 100 crores silk made ups as against the total
production of 3,300 crores of silk made ups from India. With the few selected improvements suggested
elsewhere in this report, Bhagalpur cluster can produce good quality home furnishings made ups, which can
be exported.
Primarily, the weavers and co-operative societies are not in a position to buy bulk raw material of silk
yarns/cocoons due to lack of sufficient funds available with them. The supply of silk yarns and cocoons are
mainly in the hands of very few business tycoons who are powerful in terms of money and influence. They
are dictating terms to the silk industry at Bhagalpur. Hence there is an acute need to create the raw material
bank in the proposed common facility center at Bhagalpur.
In addition to the above problems, Bhagalpur weavers are not having the access to the good printing,
dyeing, designing facilities which are required for the production of good quality product mix for export
market as well as for domestic market.
The Bhagalpur cluster is the second highest in silk fabric production and exports after the Karnataka state.
Bhagalpur silk home furnishing made ups are slowly becoming popular in the overseas markets
III. HISTORICAL EVOLUTION OF THE CLUSTER
GEOGRAPHIC LOCATION:
Bhagalpur is a divisional town of historical importance situated on the southern bank of the Ganga river.
Situated 220km east of state capital Patna and 410 km north west of Calcutta is well connected by rail and
road.
HISTORICAL BACKGROUND
Early civilizations have fostered along the fertile coasts of the river Ganges. Bhagalpur has often been
referred to as Bhagaddat-Puram in ancient Sanskrit literatures such as the Ramanaya, Mahabharatha and
Panchtantra. "Vishaili Puja" or the worship of the snake queen traces its roots to hundreds of years and is still
celebrated every year with thousands of believers and snake charmers offering milk to the Nag(the snake
King) and Nageen (The snake Queen). Bhagalpur is a town and the administrative headquarters of
Bhagalpur district Bihar state in the eastern part of India .. References to Bhagalpur can be found in Indian
epics like the Ramayana and the Mahabharata where Bhagalpur has been described as the kingdom of Anga.
The main language of Bhagalpur is Angika.The gangetic plain of Bhagalpur is very fertile. The main crops
that are grown in Bhagalpur is Rice, Wheat,Maize, Barley and oilseeds. The economy of Bhagalpur is
dependent mainly on agriculture and silk. The area of Bhagalpur is spread over 2570 km. Total population of
Bhagalpur is 19,09,967, out of this 15,66,518 resides in rural area and 3,43,449 resides in urban area. The
total schedule caste and schedule tribe population of Bhagalpur is 2, 30,618. In Bhagalpur there are 16
blocks. The names of the blocks are: Pirpainti, Kahalgoan, Sanhaula, Sabour, Nathnagar, Jagdishpur,
Sultanganj, Sahkund, Bihpur, Navgachia, Gopalpur, Kharik, Narayanpur, Gauradih, Ismailpur, Rangrachowk.
The main rivers of Bhagalpur are Ganga, Badua, Chanan .
Bhagalpur is known as silk city as it is famous worldwide for its silk production. The silk industry in this city is
200 of years old and a whole clan exist that has been producing silk for generations. There is a Silk Institute
and Agricultural college here, as well as a University, and Engineering, Medical and homeopath colleges.
Bhagalpur is well known for its sericulture, manufacture of silk yarn and weaving them into lovely products.
This silk is of a distinct and special type. It is known as tussah or tusser silk. Bhagalpur silk is a household
name in India and the lovers of Bhagalpur Silk fabrics is found allover the India. Silk weaving is an age-old
traditional household industry of Bhagalpur.
During 1941, G. Griyarson who id District Majistrate under British Regime has taken a sample of Bhgalpur
Product to UK and popularized the brand globally
After Communal Riots in the city during 1989, the turnover has been reduced form 400 crores to 100 crores
and triggered weaver’s migration and change of profession.
The situation remained stand still after communal riots and affected the cluster adversely.
IV. Sketch of MSMEs
SOCIO-ECONOMIC CONDITION
There are about 30,000 Handloom weavers found in Bhagalpur and there are about 25,000 Handlooms in
Bhagalpur. 85 %of the weavers are Muslims and rest 15 % belong to other communities. 80% of the
weavers reside in the rural sector and rest 20% resides in the urban sector. The socio-economic conditions of
the weavers of Bhagalpur was improving until the outbreak of communal riots in 1989 but after the riots, the
condition of weavers became miserable and it resulted in the destruction of the famous silk industry
gradually. Weavers were uprooted from their place and livelihood and it severely affected the silk trade in the
Bhagalpur. After the Bhagalpur communal riots the growth of Bhagalpur silk industry was affected a lot.
Many weavers abandoned their looms and fled to the cities. Others took up lower income and less highprofile jobs such as tailoring or construction activity. Due to this many weavers switched to handlooms to
power looms. The Bhagalpur. Weavers history traces back to over 100 years. It was a family tradition among
the lower income group of people to take up the weaving job during the early days of 19th centuries.
Urban Country Composition
80 % of the weavers reside in the rural sector and rest 20 % resides in urban sector. The map of
concentration of weavers is given below:
Some of the weavers and selected co-operatives are undertaking the job work of weaving from the master
weavers / traders/ exporters. since weavers do not have the sufficient education and knowledge of entire
silk trade in India as well as about the exports , the middle man like master weavers come into play as they
are closely associated with the traders and exporters and have the practical tactics to manage the weavers.
Since weavers have to earn their daily wages for feeding themselves and their families, they undertake the
weaving jobs at very low rates as dictated by the chain of master weavers/ traders /Exporters.
The concentration of the weavers in different parts of the Bhagalpur cluster are given blow in the tabular
form along with the type of job which they undertake.
Name of the specific Area
Ambabhagh and Hasnabhagh (Urban area)
Puranini and surroundings 18 (villages)
Nathnagar and Champanagar (Urban area)
Amarpur (Village )
Maharana Hatt ( Village )
Mirjafari and surrounding village
Type of the Job being done
Home furnishing made ups
Length fabrics, Home Furnishing made ups ,
Dupatta, Saree
Home furnishing and length fabric.
Shawl, Saree
Saree, Dupatta and length fabric, cotton work
Length fabric silk, cotton, khadi.
BPL (Below Poverty Line) weavers: Bihar is the most populous state of the country and economically
also it is one of the most backward states of the India. Bhagalpur one of the districts of Bihar which has a
population of around 20 lacks ,45 % of the population belong to BPL group (Below poverty Line) . Mostly the
backward communities from the BPL group are engaged in Handloom weaving occupation.
Male /Female status: weaving is mainly dominated by male in Bhagalpur. The are no women weavers
engaged in the weaving job. But women in the weavers family generally assist male weavers in reeling and
Bobbin –filling work. Such work amounts to be 8% to 10 % of the total weaving job.
In fact, to improve the overall productivity in the weaving job, there is a possibility of training in the weaving
job. There is a practice in the weavers’ community that the women are not able to do the weaving job
.Moreover, male weavers may not be willing to give training to their women force. This is a thinking of male
regarding their women that they should undertake the weaving job as done by the males.
There could be possibility of increasing the productivity in weaving by encouraging women for taking up the
weaving job in the respective places. Perhaps a separate training can be given to women force of the
weavers family.
Health: Some of the famous silk weavers of Bhagalpur face starvation and disease. Due to the lack of
infrastructural facility available most of the people are dying of malnutrition and hunger. Joblessness and
subsequent poverty have plagued them since. There have been no aid or rehabilitation measures from any
quarters. An increasing number of them have contracted tuberculosis and other malnutrition-related diseases.
And due to this reason there is decline in the silk industry of Bihar. In Bhagalpur most of the silk weavers are
losing their battle against the poverty, joblessness and hunger. Numbers of the weavers have changed their
job to some other lines in order to survive.
In the long run there is a need to provide Handloom weavers Health Insurance Scheme.
Education: Bihar has the lowest literacy rate of 47.58 %. Bhagalpur one of the District of Bihar has also the
lowest literacy rate. Most of the weavers in Bhagalpur District are mostly illiterate because of the inadequate
educational infrastructure facility available in the district of Bhagalpur. There is an urgent need of providing
primary and secondary educational facilities to the children, women and weavers themselves.
Housing: Most of the weavers are living in the low roof height huts/ with tiled roof or asbestos /tin sheets/
terracota tiles in which the frame looms cannot be accommodated. Hence they are using pit looms for
weaving silk fabrics. Moreover pit looms are much cheaper when compared to frame looms. For example the
average cost of frame looms is around Rs 5000 as against the Rs 1500 of the cost of the pit looms.
In the long run there is a need of providing suitable houses or providing financial assistance to built pucca
houses for the weavers and their families. The condition of other infrastructural facility like roads, drainage
systems in the Bhagalpur district and in the villages where the weavers are located are in pathetic condition.
Basic Amenities: The basic amenities like electricity, drinking water, roads and drainage system are in very
poor condition in the district of Bhagalpur. In order to improve the productivity of the weavers, there is a
need to improve these basic amenities and the living conditions of the weavers.
Active weavers force.: during the study of the Bhagalpur weavers, it has been found that presently,
there are only 20,000 active weavers among the broad total estimate of 30, 000. Some of the weavers have
switched over to the power looms and some of them have shifted to some other odd jobs, the reason behind
this is hunger, poverty and malnutrition and non availability of the weaving job regularly.
Job work: Most of the weavers in Bhagalpur cluster undertake only job work of weaving from the master
weavers /traders/exporters. The basic reason for this is that they do not have sufficient market knowledge
and information about the relevant trade and they do not have investing capability for the purchase of raw
materials, working capital, marketing expenses etc.
Weaver’s wages: In the process of negotiating wages for weavers , usually weavers do not have much of
choice as the prices are more or less dictated by the master weavers who in turn guided by the
exporters/traders . In the whole chain of wage negotiation, the weakest link is the weaver. Hence, the
weavers work on the meager wages received from the master weavers.
The weaver generally works for two or three master weavers from whom they are expecting regular and
continuous weaving job. It is rather hurting to hear that the wages of the weaver have only raised by small
percentage for the last one decade. Which means to say that there is no increase in the wages of the
weavers at least for a decade
The weaver is usually loyal to the wage- giver. He does not exchange designs given by the master
weavers /traders/exporters and keeps confidential as far as possible. Sometimes the discontent weaver due
to inadequacy of work, delayed payment and such other reasons culminate into a change .with the result the
weavers change over to some other master weaver/traders/exporters. It is a dynamic human relationship
which keeps changing both ways. Sometimes the wage- giver even revises down wards the committed
weaving charges on the ground that the market condition, sale price realization is poor. There are also
penalties for the defective weaving done by the weavers.
To keep the weavers on the role of a particular wage giver in the long run, they give sometimes in advance
money to the weavers. This is very common practice between the weavers, master weaver and exporter/
traders.
Weavers Income: The income of weavers who works on job work basis earns only an average wage of Rs
30 per day per weaver. This means to say that they are getting wages much below the wages mentioned in
minimum wages act of Rs 80 per person.
The producer weaver or where there are weavers themselves are members of the co-operative society
which receives direct export and domestic orders are able to get around 30% better wages when compared
to the weavers working on job work basis.
There has been practically there is no increase for the last 10 years in the wages of the weavers, on the
other hand there is reasonable increase in market prices. which means to say , there is a game play in price
negotiation by the middle men like traders , master weavers etc.
Other Observations
The weavers of Bahagalpur generally blame policy maker and bad industrial policy of Bihar. They also blame
the lack of infrastructural facility which is not available to them. It was also observed that the market
condition is also one of the reasons for the decline in the growth of the silk industry in Bhagalpur.
Weavers Survey Analysis
Table no 1. Looms Ownership
No Of Looms
0
1
2
3
4
5 or more
Total
No
of
Weavers
Working Looms with
weavers
0
21
33
13
8
0
75
Looms Provided By
Traders/ others
73
0
1
1
0
0
75
Looms Folded/
stacked /put away
0
0
0
0
0
0
0
The overall number of looms would work out to be 158 looms , which denote an average of 2.10 looms per
each interviewed weavers.
Table No. 2 Family Weavers
Working Family Weavers
Weaver Family
1
12
2
43
3
9
4
2
5
2
6
3
7
1
8
1
9
1
10 and Above
1
Total
75
Weighted Average
2.46
From the above table table 2 there is an weighted average of 2.46 weavers per each family.
Hired Workers
0
1
2
3
4
Total
Weighted weavers.
Table 3. Hired Weaving Workers
Weavers
63
9
2
1
0
75
0.22
From the above (table Table 3) there is an weighted average of 0.22 hired workers per weavers family.
Table 4 . Mode of Working
Mode Of Working
Own yarn
Job work on lab our payment
Mixed
Total
No Of Weavers
4
68
3
75
68 out of 75 reporting weavers’ families work as job workers. Just 5 % of them buy their own yarn as shown
in the table 4
Table: 5 Yarn Consumption in Last three years (No of Weavers)
Yarn Consumption in last
Tassar
Eri
Matka
Noel
others
three years in Kgs
1 to5 Kg
5
40
14
30
52
5 to 10 Kg
4
6
15
12
6
11 to 20 Kg
31
9
13
9
8
21 to 30 kg
24
15
10
10
3
31 to 40 Kg
7
3
13
11
3
More than 40 Kg
4
2
10
3
3
Total
75
75
75
75
75
Weighted Average
20.61
11.64
19.63
14.46
8.02
The weavers- families reported the following yarn consumption during the last three years (Table 5)
Tassar
:
20.61Kg
Eri
:
11.64Kg
Matka
:
19.63Kg
Noel
:
14.46Kg
Others
:
8.02Kg
The total average consumption of the silk putting together all varieties comes to 74.36 per family in last
three years. It means to say that average consumption in a year comes to 24.78 kgs. Per family
Table No: 6 Product made during last the three years
Sari
No. Of Weavers
None
16
1to 25
20
26 to 50
10
51 to 75
16
76 to 100
9
More than 100
4
Total
75
Weighted average
37.86
59 out of 75 reporting families are engaged in saree weaving. ( table no : 6)
Table 7: Product made during last three years
Dress Material (Mt.)
No Of Weavers
Nil
0
100 to 200 Mt.
3
201 to 300 Mt.
25
301 to 400 Mt.
26
401 to 500 Mt.
21
Total
75
Weighted average
337.14
On other hand all the 75 weavers are pursuing weaving of dress material . the woven dress material @ 5.33
metres per weaver as shown in the table 7
Table No 8: Product made during last three years
Home Furnishing fabric (Mt.)
No Of Weavers
Nil
9
100 to 200 Mt.
16
201 to 300 Mt.
23
301 to 400 Mt.
19
401 to 500 Mt.
8
Total
75
Weighted Average
245.66
66 out of 75 weavers are undertaking the job of home furnishing fabric. The woven home furnishing fabric is
@ 6.06 per weaver as shown in the table 8
Table No 9: Voluntary Closure During the Year
Closure Loom Days
30 to 60 Days
61 to 90 days
91 To 120 days
121 to 150 days
151 to 180 Days
Total
Weighted average
No Of Weavers
38
31
5
1
0
75
62.84
The working looms days at the disposal of the weavers family are 57670 /year (no of looms 158 * 365
days.) on the voluntary basis they did not work for 2213 loomdays as shown in the table 9
Table No 10 : Food closure During the year
Closure Loom Days
No Of Weavers
Nil
45
30 to 120 days
18
121 to 210 days
9
211 to 300 days
3
300 to 390 days
0
391 to 730 days
0
Over 1000 days
0
Total
75
Weighted average
87.18
They were force to remain close for 3963 loom days (6.87%) in other words a loom was voluntary not
worked for, 25 days in a year.
Table 11: Earning During last one –year own Yarn- Work
Sales Proceeds
Weavers (No)
Nil
68
60,000 to 75000
1
75001 to 10,000
3
10,0001 to 1,80,000
2
More than 2,50,000
1
Total
75
Weighted Average
9666.70
7 weavers who have been interviewed and buying their own yarn .
Table: 12 Earning During last one-year job work
Wages Received( Rs )
Nil
Up to 24,000
24001 to 48000
48001 to 72000
72001 to 96 ,000
More than 1,25,000
Do not want to tell
Stop Weaving
Total
Weighted Average
Weavers (No)
2
21
26
22
2
1
1
0
75
40707
Total 73 weavers are working on job work basis .this means 97 % of the weavers are working on job work
basis
.29
%
of
the
weaver
are
getting
an
average
wages
of
Rs 24, 000 per annum. And a maximum average earning of 1,25,000 per annum for only one weaver.
Table 13: weaver service centre (No of weavers)
Awareness
Weavers
Yes
59
No
16
Total
75
79 % of the weavers are aware of the weaver service center as shown in the table 13 and the rest are not
aware.
Table 14: Benefit from WSC
Benefit Received
Training
Design
Others
Yes
52
18
15
No
23
57
60
Total
75
75
75
70 % of the weavers have undergone training from weavers center out of the total weavers of 75 (Surveyed)
as shown in the table 14.
24 % of the weavers have undergone training in designing from weavers center out the total weavers of 75
(Surveyed) as shown in the Table 14
20 % of the weavers have undergone training in Dyeing and other areas from weavers service center out the
total weavers of 75 (surveyed) as shown in the table 14
Table 15 : Future Of Handloom Weaving Occupation (No Of Weavers )
Future
Weavers
Bright
Bleak
Do Not Know
38
27
10
Total
75
51% of the weavers find the future of weaving occupation bright while 36% believe the future of the weaver
bleak and rest 13 % belong to do not know group as shown in the (table 15.)
Table 16: Plan to move to other occupation
Plans to move to other occupation
Yes
No
Do not Know
Total
No of weavers
8
67
0
75
11 % of the weavers plan to move to other occupations as shown in the table 16:
Reasons
Traders and Govt.
Govt. Alone
Traders Alone
None
Govt. Weavers and Fate
Do Not Know
Total
Table 17: Reasons for the Decline (No of Weavers)
No of weavers
43
20
7
2
1
2
75
57% of the weavers feel that the combination of traders and government are responsible for the decline in
the Handllom industry, 27 % of the weavers feel that the government alone is responsible , 9% of the
weavers feel that the traders alone responsible . as shown in the table 17
Table 18 : Family
Adult-working Adult NonChildren Total
working
Male
235
68
289
592
Female
292
59
226
577
Total
527
127
515
1169
From the Male category, 40 % of the adults are working, 11% of the adult are non –working , 49 % of them
are children. As shown in the table 18. From the female category , 51% of the adult are working, 10% of the
adult are non –working and 39 % of them are children. As shown in the table 18
Table 19: Assets
Premises
No of weavers
Own
Hired
Total
75
0
75
100 % of the weavers have their small huts and tiled /Sheeted roof houses.
Some comments of the weavers:
1
2
3
4
No timely payment of the wages
Government should help them in marketing
No option available for shifting to any other work
Presence of power looms are effecting the Handlooms
Comments from the local designer
We have met with 4 designers whose background and comments are as follows:
1 All the Bhagalpur local designers are not having any formal education in designing and there
education background is of only matric pass.
2
All of them have undergone short duration training courses in designing from the weavers service
center Bhagalpur .
3
None of the 4 designers is aware of success or failure of their designs .
4
None of the 4 designers have met designers from other cities /institutions .
V. Analysis of Business Operations
Price v/s fabric quality variation bar graph
Price V/s Fabric Quality Variation
225 228 243
160 190 166
Price/m
M
r*
D
up
at
k a io n
M
at * N
ka
oe
Ta * M l
ss
at
a
k
Ta r*Ta a
ss
ss
a
a
Ta r* M r
ss
at
ar
k
*G a
hi
ch
a
Ta
ss
a
Price/m
300
250
200
150
100
50
0
Quality of the Fabric
From the above bar graph , it can be seen that the lowest price of Tassar × Tassar quality is Rs 160.per
metre . and the highest price of Rs 243 per metre of Matka × Matka quality. The prices of other qualities like
Tassar × Dupion, Matka × Noel, Tassar × Matka, Tassar × Ghicha lie between the maximum and minimum
prices as indicated above.
ne
n
Price/Kg
Li
hi
ch
a
G
Er
i
hi
ne
s
C
M
at
ka
2500
20001600
1600
2000 16001300 1400
1200
1500
850
1000
400
500
0
e
Price per Kg
quality wise Indicative yarn prices
Quality of yarn
Indicative quality wise yarn price :
It can be seen from the above bar graph the lowest price of the yarn quality is of Linen at Rs 400 per Kg.
And the highest quality is of Eri at Rs Rs 2000 per Kg. The prices of other yarn quality like Chinese,
Mulberry, matka, Katya, dupion ghicha, tassar lie between the maximum and minimum as indicated above.
The yarn qualities of Tassar, Matka and Dupion amounts to the share of 70 % of the total consumption and
the share of the remaining qualities amounting to balance 30 %.
4 PS ANALYSIS
1.
Product :
From the above 4 ps diagram , it can be seen that products are one of the important factor influencing
cluster marketing strategies. Some of the important product proposed to manufacture in Bhagalpur cluster
are :
Silk Dress material.
Saree
Salwar Suits
Cushion Covers
Curtains
Bed Sheets
Throws
Shawls
Table Covers,
Runners
Napkins,
KurtaPyjama
Scarves
Domestic Turnover (In Laks)
Estimated Turnover
100
200
500
End of the financial year
2007-08
2008-09
2009-10
It can be seen from the above table , the objective of the marketing plan of the Bhgalpur cluster are to
make a modest beginning of 100 lacks turnovers in domestic trade by the end of financial year 2007-08 and
to reach the target of 500 lacks by the end of 2009-10 .
Export turnover (In Lacks)
Estimated Turnover
End of the financial year
50
2007-08
100
2008-09
300
2009-10
It can be seen from the above table , the objective of the marketing plan of the Bhgalpur cluster are to
make a modest beginning of 50 lacks turnovers in export turnover by the end of financial year 2007-08 and
to reach the target of 300 lacks by the end of 2009-10 .
Sarees : In case of silk sarees there is a growing demand in the domestic market for silk sarees in the higher
income market segment. Of late, even the higher income layer of the middle class consumers are going in for
such high priced silk sarees.
Quality of Sarees t varies depending on the size of the yarn . Usually the gram age of the fabric varies from
70 GSM to 250 Depending on the GSM the weight of the sarees also varies. Accordingly, the price of the
srees also grows up with the overall weight of the saris. Even in the SAARC countries the Indian quality saris
are accepted as they are.
Design: In India very few branded sarees are sold similar to that of jacquarde design of Nalli brand quality.
Other silk sarees from Kanchipuram are being sold mainly with border dyed or zaried along the borders.
Some of them could be with Dobby design.
Similarly with there help of good designers we can produce good quality value added Handloom silk sarees
for the domestic as well as international market.
Silk sarees which are branded and value added like Nalli sarees are being sold in the domestic market as well
as the export markets of SARRC countries. Apart from Nalli sarees, the handloom silk sarees from
Kanchivaram (Tamil Nadu) and Dharamavaram (A.P) , and Banaras silk sarees and Murshidabad ( Bengal )
are also being sold in the domestic market.
With the branding and value addition on the Bhagalpur silk sarees we are hopeful that the market share of
Bhaglpur silk sarees can go up drastically.
Packaging: The packaging of silk sarees in India is not up to the mark as compare to the standard of
packaging at international level. Generally Indians silk sarees are folded and kept in the low quality
polythene bags and packed in low quality cotton and wooden boxes.
As per the international standards sarees are to be packed in good quality HDPE sheets and they are to be in
turn packed in 7/9 ply corrugated boxes so that they become transport6 worthy by road , by Sea and by Air.
Bar code markings along with brand name to be printed on the polythene sheets used for packing the sarees.
The brand name stickers can also be put on the sarees.
Sizes : Normal Indian sizes of sarees varies from 5to 6 meters in length and around 1 metre in width .
Warranty: there should be a proper system of replacing the defective sarees so that consumers’ gets
confidence on the brand and demand in the long run increases
Silk Suits: In case of silk suits there is a large market for entire salwar suits throughout the country .out of
the total market 20 % of the higher income segment consumers will go for silk suits. Hence relatively there is
a large potential domestic market.
Quality of silk suits: The quality of the silk suits depends on the count of the yarn and gram age of the silk
fabric. The suits can be made with ranging from 60 GSM to 120GSM fabrics the variation of the weight the
prices will also go up.
Design of silk suit: there are several types of silk fabrics. Usually in India, the Jaquarde and Dobby
weaving is commonly weaved in the fabric itself. One can create various designs by printing over the fabric.
Some of the popular printing methods are screen printing, block printing, Mud printing and offset printing.
Various other designs can also be produce by embroidery work with computerized embroidery, sewing
machine embroidery and hand embroidery. In Bhgalpur cluster in our CFC we are proposing embroidery
design center consisting of sewing machines and hand embroidery facilities.
Presently, there are several branded and unbranded suits and suit fabric being sold in the domestic market.
In the recent past several large retail showrooms like Life style, west side etc have come up in the country.
The silk suit material from Bhagalpur can be sold as suit length of fabrics and also ready made suits with
Bhagalpur brand can also be sold in large retail showrooms. In case of suit material the main competition in
the domestic market is from mill made sector, power loom sector.
The suit material and ready made suit can also be exported to neighboring SAARC, Middle East countries.
Packaging: The packaging of silk suits in India is not up to the mark as compare to the standard of
packaging at international level. Generally Indians silk suits are folded and kept in the low quality polythene
bags and packed in low quality cotton and wooden boxes.
As per the international standards silk suits are to be packed in good quality HDPE sheets and they are to be
in turn packed in 7/9 ply corrugated boxes so that they become transport6 worthy by road, by Sea and by
Air. Bar code markings along with brand name to be printed on the polythene sheets used for packing the silk
suits.
The brand name stickers can also be put on the suits
Size: The suit length varies from 5 to 5 and half meter in India. And when they are made as readymade
garments the normal sizes of small, medium, large and extra large have standard dimensions. usually blow
13 inch chest size are called small size, between 30 t0 34 chest size are called medium and than 34-40 in
chest size are called large. about 40 inch size chest they are called extra large.
Warranty: There should be a proper system of replacing the defective suits so that consumers’ gets
confidence on the brand and demand in the long run increases
Home Furnishing made ups : There is a new trend in the domestic market , home Furnishing made ups
like Bed sheets , Cushion covers, Curtains, sofa covers, table covers etc are being sold through large retail
showrooms through out the country. For example in the city of Delhi, we have very good Showrooms of
Home Furnishing like Life Style, Shyam Ahuja, Jag dish , Seasons , Maspar etc . These showrooms are
opened in other cities of our country.
Home Furnishing made ups also faces competition from the mill made sector like Vimal, Bombay Dyeing,
Shamken etc and made ups from power looms sectors. But there is a very good demand within the country
if these made ups are produced with value addition and keeping in view the international quality.
It is proposed to market the Home Furnishing Made ups from Bhagalpur clusters to sell in the most of the
cities and towns by creating a good network of Distributors/Agents/ Dealers and Retailers .
Quality of home furnishing made ups: the quality of Home Furnishing made ups depends on the exact count
of the yarn and Gram age of the fabric. Usually, 80 to 100 GSM are used for manufacturing Home
Furnishings made ups and these fabrics and made ups are checked for quality at raw material stage that is
cocoons/fabrics , fabric stage and at the end product of the readymade garments . The quality is checked in
terms of parameters like count of the yarn, GSM of the fabrics , Dyeing and printing quality in terms of color
fastness . Finally, the made up are checked for the quality of stitching, sizes etc.
Design of Home furnishing made ups: in case of Home furnishing made up the Design aspect is very
important from the angle of consumer. The designing can be made at the level of weaving fabric by using the
techniques of Jacquard, Dobby etc.
The latest design can also be produced by value addition in dyeing, printing and embroidery work. We are
proposing the design centre with the above facilities to be set up at CFC of Bhgalpur cluster.
Packaging: packaging of home furnishing made ups comprises of polythene, wrapping and enclosing the
various made ups in the good quality LDP / HDP qualities. After packing the made ups in polythene bags,
their in turn placed in a good quality 7/9 ply cartons. The bar code instructions and labeling instructions from
the buyer are also arranged on the product or polythene bags as per buyers’ requirements. Some times the
brand tags is also attached with the product.
Size
Made Ups
Cushion Covers
Bed Shets
Curtains
Usual sizes
12*12 “, 16*16”, 18*18”, 22*22”, 24*24”
120*180 cm , 180*220 cm , 220* 220 cm ,250*250 cm
3*6
Throws
50*60 “,
Table Covers,
100*100cm,,125*125cm, 135*150cm, 150*150 cm
Warranty: There should be a proper system of replacing the defective made ups so that consumers’ gets
confidence on the brand and demand in the long run increases.
Export Marketing: The total India’s Handloom product exports including fabrics is around 4000 crores. Out
of the total Handloom exports silk fabrics and made ups contribute a share of around 40 % of total export of
1600 crores.
Out of the total 1600 crores silk and silk products exports from India, the Bhagalpur cluster presently,
producing and exporting around 50 crores of turnovers which amounts to 12.5%.
2. Price
The prices are to be worked out for each product of Sarees, suits and home furnishing made ups and the
final price list is to be made for the use of consumer, dealers and distributors while making the sale price list
the factors like total cost of the product, competitors prices and the market prices are to be kept in mind.
The domestic prices for Bhgalpur Handloom silk sarees will vary from Rs 1500 to Rs 5000 depending on the
Gram age of the fabric and value addition. Similarly the prices of silk suits in the domestic market will vary
from Rs 1500 to 4000 depending on the exact quality of the fabric, count of the yarn and value addition
work.
Payment Period and Credit Terms: payment period in India usually extends from 60 days to 90 days and
the payment on abroad of 60 to 120 days of L/C , D.A, D.P terms. While extending the credit terms to the
customers there is a need to check up the credentials of the customer in terms of credit worthiness.
3. Promotion
We propose to appoint 4 to 5 sales executive /consultants for domestic markets who will create a network of
distributors/dealers agents and retailers . There would be monthly monitoring of sales and it would be our
endeavor to achieve the projected sales target of 100 lacks in the financial year 2007-08 in the domestic
market and 50 lacks in the financial year 2007-08 in the international market.
Export sales would be promoted by appointing specialized overseas business promotion agents in the
selected countries like U.S.A, Germany, U.K, France, Australia, Japan and other European Union countries.
For sarees and salwar suits the target would be Indians settled abroad and we propose to adopt some of the
following strategies and tools in order to achieve the projected targets.
1.
2.
3.
4.
5.
6.
7.
1.
a.
b.
c.
Participation in the domestic exhibitions at various levels of district, states and national.
Participation in the international exhibitions for promotion of export silks.
Participation in the buyers’ seller meets in domestic market as well as international market.
Appointing local distributors/dealers/retailers for the promotion of sales in the domestic market.
Appointment of the selected overseas agents in the selected overseas countries.
By creating new design with the help of qualified designer in order to increase the sales in the
domestic as well as international market.
By creating a very good website with the details of the product and prices the sales through internet
can be promoted.
Places
As envisaged in the action plan we propose to create permanent infrastructure for showrooms at
Bhagalpur , Patna , Delhi and Kolkata
Creation of marketing network for promoting sales in domestic market through distributor/dealers and
retailers up to the level of all major district in India initially.
Appointments of specialized overseas agents in U.S.A, Germany, U.K, France, Australia, Japan and
other European Union countries. For promoting export sales.
d.
Since Bhgalpur is situated 220km east of state capital of Bihar the markets like Patna, Metro cities of
Kolkata and New Delhi can be explored as the initial sales exploration sales location.
For transport of the fabrics and made ups suits and sarees there are established and recognised
transport companies through which textile trade already is being carried out
e.
VI. Inter-Firm Industrial Organisation:
Analysis of Cluster Map
Facilitating and promotional Agencies
The following organizations are associated directly or indirectly with the basic weavers and their cooperative
societies located in Bhagalpur Cluster.
1. Weavers service centre (GOI)
2. District Industry Centre (DIC , GOB) :
3. Directorate of Handlooms (Industries Department, GOB)
4. Central Silk Board.
5. Exporters at Bhagalpur, Kolkata and New Delhi
6. Designers at Bhagalpur.
7. Indian Silk Export promotion Council.
8. Financial Institution.
1 Lead Bank
2 Co-operative Banks
3 NABARD
1.
Weavers service centre (GOI): The weaver’s service centre at Bhagalpur was set up in the year
1974 for the development of Handloom silk industry in the state of Bihar. The main activity of WSC
(weaver service centre) at Bhagalpur are imparting training to the weavers in the following areas
Product Development
Design Development
Printing and dyeing
These activities are generally done for the promotion, encouragement and support for the export of
Handloom silk of Bhagalpur abroad. Many training progammes are organized at Bhagalpur to develop
awareness among the Handloom silk weavers of Bhagalpur. It also provides assistance to solve different
textile industry’s related problems by interacting with various Govt. and Non- Govt. organizations.
The weaver’s service centre of Bhagalpur have different facilities for analyzing fabric construction
and strength of yarns, analysis of blended yarns and fabrics, and fabrics.
, counts
Central silk Board : The main objective of central silk board is to promote the development and growth of
sericulture and handloom silk industry . It also provides assistance, support and backing for the Research,
Development, Extension and training to the weavers of Handloom Silk. Besides, the CSB organizes production
and supply of quality silkworm seed, mulberry and tassar cuttings etc. and also undertakes directly as well
as jointly with the state sericulture departments, the implementation of various sericulture projects.
But at the Bhagalpur , CSB is not contributing any training or any other activity to promote the Handloom silk
industry . They are presently assisting power loom sector.
Directorate of Handlooms DOH
(Industry Department Government of Bihar)
Directorate of Handloom help out the co-operative societies in various works monitors the work of co-
operative societies. It was suppose to organize various fairs, exhibition of handlooms silk made by the
weavers of Bhagalpur. This department is not active in providing any assistance to handloom silk industry .
Indian Silk Export Promotion Council: The main objective of Indian silk export promotion council is the
promotion of silk export from India. The main work of Indian silk Export Promotion Council is to promote the
right contact in silk business abroad. It organizes buyer and seller meets for the silk products. It helps in the
participation in international textile fairs.
There si no branch of Indian silk Export promotion council at Bhagalpur.
Bihar institute of silk and Textile Bhagalpur: The institute offer 4 years of B.E in silk technology and
textile technology. There are about 70 staff and 30 students in the Bihar Institute of silk and textile
Bhagalpur. The overall condition of the institute is pathetic. Presently there is no contribution or assistance to
the Bhagalpur Handloom silk Industry from this institute.
District Industry centre Government of Bihar: District Industry centre is a state Government unit
functioning at district level for the development of Handloom silk Industry of Bhagalpur.
This department also does not offer any assistance or promotional measures to the Handloom silk industry at
Bhagalpur
Financial institution: The major financial institutions are Lead Bank (UCO Bank), Punjab National Bank,
State Bank of India, Central Bank of India, Bhagalpur Central Co-operative Bank Limited and NABARD. The
role of banks for providing financial assistance to the Weavers of Bhagalpur is nominal. The Bhagalpur central
Co-operative bank has given 25 credit cards to Individual weavers in puraini village of Bhgalpur. They have
also given 1 lack cash credit facility to Puraini weaver’s co-operative society. There has been no financial
assistance given to the weavers by NABARD.
Supply chain and value proposition Analysis
Economics and cost data of typical products being manufactured by Bhagalpur weavers
4 Silk Dress material.
5 Saree
6 Salwar Suits
7 Kurta- Pyjama
8 Cushion Covers
9 Bed Sheets
10 Shawls
11 Scarves
12 Curtains
13 Throws
14 Table Covers, Napkins, Runners
Value chain Analysis for Bhagalpur silk sarees (Tassar × Tassar 80 GSM including Blouse total length 6.25
metre.)
Dry Cleaning
And packing
30 Rs per
saree
Trader /Master
Weaver (7% of
Rs1103) = Rs
77
Finishing
20 Rs per
saree
Weaving 250
Distributor/
Dealer
Other qualities of silk fabric with which sarees can be weaved :
1. Tassar × Matka
2. Tassar × Dupion
3. Tassar × Noel
4. Matka × Noel
5. Matka × Matka
Price range will vary from Minimum of 1500 / saree to 3000.
From the above diagram , it can be seen the costing of Tassar Silk saree from the stage of silk yarn then
going through the process of dyeing, weaving , Finishing, dry cleaning and packing .
The Finally packed saree would go to Master weaver/ trader and then passes to distributor /dealer , and
finally reaches retailer as shown in the above diagram. And then retailers sells the sarees to the ultimate
consumer. The price mark ups at each stage are shown in the above diagram up to the consumer level.
Fabrics (Matka * Noel , 183/m) GSM 270
Dry Cleaning
and
packing=Rs 10
Master
Weaver
(5% of
Rs177)=Rs9
Finishing Rs
5 per metre
Weaving @
16 Rs per
metre =Rs 16
Exporter
10% of
Rs186
= Rs19
Trader
10% of
186= Rs19
From the above diagram, it can be seen the costing of Matka *Noel silk fabric from the stage of
silk yarn then going through the process of dyeing, weaving , Finishing, dry cleaning and
packing
The Finally packed saree would go to Master weaver/ trader and then passes to exporter on one
side and the other side it passes to traders, and finally it passes to distributor and through
distributor to retailer.
Home Furnishing Made ups, Cushion covers , 250 GSM , Matka × Matka
Dry Cleaning and
packing
Rs 15 per piece
Finishing
Rs 5 per piece
Stitching
Rs 15 per piece
Master Weaver (7%
of Rs 189 = Rs 13
Exporter 20 % of
202= Rs 40
FOB price = Rs242
Or
US$ =5.5 per piece
Weaving Rs 8 per
piece @Rs 16/m
Dyeing Rs 2 per
piece @ Rs 30 per
Kg
Silk yarn 125 gm
@Rs 1200 per kg
=Rs 144
From the above diagram , it can be seen the costing of home furnishing made up , (Cushin covers) from the
stage of silk yarn then going through the process of dyeing, weaving , stitching, Finishing, dry cleaning and
packing .
The Finally packed saree would go to Master weaver/ trader and then passes to distributor /dealer , and
finally reaches to the exporters.. The price mark ups at each stage are shown in the above diagram up to the
consumer level.
Generally the FOB price of particular made ups is less by 3 to 4 times when compared to international retail
price.
Suit length ( 90 GSM , Tassar × Dupion , Lengrh 5 metre.)
Pre-Intervention
Dry Cleaning
and packing Rs
30 per suit @ Rs
6 per metre
Trader/Master
weaver Rs 979
of 7 % =Rs 69
Dry Cleaning
and packing
Rs 15 per piece
Distributor/Deale
r Rs 1048 of 10
% = 105
Finishing Rs 25
per suit @ Rs 5
per meter
Weaving @ 20
/m = Rs 100
Retailer =rs
1153 of 20 % =
Rs 231
Consumer
Price= Rs 1384
Yarn dyeing Rs
13.50 per suit @
Rs 30 per Kg
Silk yarn = 450
gram (weight) @
1800 /kg =Rs
810
From the above diagram , it can be seen the costing of silk suit from the stage of silk yarn then going
through the process of dyeing, weaving , Finishing, dry cleaning and packing .
The Finally packed suit would go to Master weaver/ trader and then passes to distributor /dealer , and
finally reaches retailer as shown in the above diagram. And then retailers sells the suit to the ultimate
consumer. The price mark ups at each stage are shown in the above diagram up to the consumer level.
Suit length ( 90 GSM , Tassar × Dupion , Lengrh 5 metre.)
Post -Intervention
Dry Cleaning and
packing Rs 30 per
suit @ Rs 6 per
metre
Trader/Master
weaver Rs 860 of 7
% =Rs 60
Dry Cleaning and
packing
Rs 15 per piece
Distributor/Dealer
Rs 920 of 10 % = 90
Finishing Rs 25 per
suit @ Rs 5 per
meter
Weaving @ 20 /m =
Rs 100
Yarn dyeing Rs
11.25 per suit @ Rs
25 per Kg
Silk yarn = 450 gram
(weight) @ 1600 /kg
=Rs 720
Retailer =Rs 1010 of
20 % = Rs 200
Consumer Price=
Rs 1210
VII. SWOT Analysis
Strength
Weakness
Traditional preference for silk
saris by the higher income
group.
Availability of skilled
Handloom weavers.
High demand of value added
handloom silk sarees in metro
cities like New Delhi, Kolkata,
patna.
Opportunity
Very good export potential for
home furnishing value added
made ups in the selected
overseas countries.
Brand building for Handloom silk
value added products in the
domestic market as well as in the
international market.
Product diversification like that of
home furnishing value added
made ups.
Very large Indian market for
branded silk products as the
present
high growth of retail
sales in India
Highly unorganized Cluster.
Inadequate infrastructural Facilities at Bhagalpur.
Lack of upgraded and improved Technology.
Irregular work for weavers.
Low credit from financial
Lack of printing and dying facilities .
Costlier products can only affordable by higher
income group.
Unavailability of raw materials like cocoons, and
yarns at reasonable prices.
Lack of strong market network for domestic as
well as international market.
Lack of latest design availability for value
additional products.
Threat
Biggest threat from the power loom sector
Threat from silk products from china and
Mulberry silk products from Karnataka and other
southern states.
weavers are day by day taking up other
profession due to inadequate weaving job and
wages.
Sign wave diagram of SWOT Analysis
VIII. Vision of Bhagalpur Cluster
To reach out 5000 weavers in order to improve and enhance the living condition and
productivity by 2010
How
By re-launching the brand image of Bhagalpur cluster in domestic as well as international
market, to bridge the gaps in the area of technology , marketing, capacity building and
institutional development.
Diagnosis study: It can be seen from the diagram of the methodology and approach for diagnostic study of
Bhagalpur weavers can be broadly divided into two sides, one is the Supply side, the other is the Demand
side.
Supply Side
Identification of MCFs:
In the supply side the first step is the identification and the selection of the MCFs (Master Community
Facilitator.) from the grass root level of 5000 weavers. We would select 25 weavers from the grass root
weavers. Further Mcfs would be divided into four functional small groups of 5-6 persons from among 25
selected weavers.
Each of these 5-6 MCFswill be trained by the specialist from the respective areas like dying, printing, social
intervention and group coordination.
These trained Mcfs in the different specialized area will be looking after the facilities to be installed in the
common facility centre and in turn they will also arrange to train the grassroots level handloom weavers in
the respective area.
Strengthening and Developing MCFs: The specialist from the respective areas of printing, dyeing, social
intervention and group coordination will be deputed to Bhagalpur for arranging training and coaching of MCFs
(Master community Facilitator.)
Technical Assessment: Once the MCFs are trained in the respective areas their capabilities would be
technically assessed by the experts in the respective areas of Dying, printing, social intervention and group
coordination. This is only a check function so that MCFs are very clear in their mind and ready to impart
training to the basic Handloom weavers and to be ready for maintaing respective departments of in the
proposed CFC setup.
CFC Establishment: A common facility centre with the improvements in various areas as required would
be established for the use of basic weavers and co-operative societies located in the Bhgalpur cluster. The
proposed common facility centre comprises of raw material bank, improved frame looms, improved dying
facilities, printing facilities, sampling and design centre, embroidery section, stitching and fabrication,
finishing and packaging and labeling, business information centre including domestic and Export marketing
activities.
However the detailed structure and composition of the CFC would be discussed separately under the chapter
of vision.
Saving and credit linkage: once the weavers groups are formed and their master craftsmen are trained in
their respective technical trades they would be connected with the commercial banks , lead bank , NABARD,
SIDBI in order to get their micro-financing for purchase of raw material , working capital and for marketing
activities.
BDS programme: MCFs would be thought regarding various Business Development Services like lime
materials as well as associated accessories, trims etc.so that they are organized for efficient execution of
domestic or export orders.
Consortium of traders/ manufacturers: consortium of traders and manufacturers are to be formed and
proper co-ordination should be kept between cluster management and these consortiums. So that facilities in
CFC can be used successfully in order to manufacture and produce value added products for domestic as well
as international market.
Demand Side:
Study of Marketing Strategy: In the demand side the first step is the study of marketing strategy
1 Goal: we are planning to achieve following turnover in domestic as well as international markets.
Domestic Turnover (In Laks)
Estimated Turnover
100
200
500
2
3
4
5
End of the financial year
2007-08
2008-09
2009-10
Strategy for domestic marketing: we propose to appoint 4to 5 marketing consultants/agents who will
travel throughout the country and select the distributors /agents/Retailers.
Monthly performance and sales results would be monitored by ASEED from second year onwards
(2007-08).
It is proposed to participate in domestic exhibitions, in different places as indicated in the action plan
in order to establish the Brand image of the Bagalpur cluster and to organize sales.
To participate in buyer-seller meet in the selected places as mentioned in the action plan.
Export turnover (In Laks)
Estimated Turnover
50
100
300
End of the financial year
2007-08
2008-09
2009-10
Strategy for Export marketing
1 Appointment of specialized overseas agents in the major international markets like Germany, France,
U.K., U.S.A, Australia, Japan and other European countries.
2 To contact and introduce Bhgalpur cluster to all the buying agents located in New Delhi, Mumbai,
and Bangalore.
3 To identify major silk home furnishing overseas buyers and to contact them for export orders.
4 To participate in international exhibitions as mentioned in the action plan in order to establish the
image of the Bhgalpur cluster and to book the export orders.
5 To participate in buyer-seller meet in the selected places as mentioned in the action plan
Distribution and Channel Development: It is proposed to develop a proper distribution, agents and
retailers with the help of sales executive throughout the country so that the sales are made on continuous
basis and also to establish the Brand image throughout the country.
Capacity Building
Vision of Bhagalpur Cluster to improve the overall working conditions and Productivity of Bhagalpur Weavers
by Re-Launching the Brand Image of Bhagalpur Cluster in Domestic as well as International Market and to
bridge the gaps in the area of Technology, Marketing, Capacity Building and Institutional Development .
.
PROPOSED STRUCTURE AND COMPOSITION
Chartered
Accountant/Tax
Consultant
Raw Material
Bank,
Cocoons,
Yarn
100 MT
Dyeing Centre
Water softening plant,
Chamber Dyeing, TieDie
500 kg per Day
Sampling and
Designing Centre 25 sewing
machines
Weaving Centre
Improved -100
Looms (jacquard/
Dobby/plain)
Finishing and
packing centre
Exporters
Banks/SIDBI/
NABARD
National Level fashion
Designers
Trader
s
Weavers Service
Centre
Clusters weavers ……
OF CFC
Marketing Consultants
Embroidery Centre
-10 M/c
Printing
Centre screen, Block,
mud printing
Business service
Centre – MIS,
Marketing, procurement
etc
Direct marketing
Channel
Distributor/Dealers/retai
lers
Handloom
Directorate
(State Govt
Indian silk
Export
Promotion
Council
Handloom Export
promotion council
Year
2004-05
2003-04
2002-03
Sales Turnover
15.24
3.64
2.94
Wage Payment to
weavers
1.75
0.39
0.31
Profit/Loss (Rs. In
Lac)
0.39
0.28
0.20
During the year 2004- 05 they have booked better performance due to the opportunity of booking the orders
form Delhi Haat and other market.
Since all the member weavers of 289 strength cannot be engaged by them, some of them are taking of
weaving job form other cooperative societies and traders. However it is reported that weavers are earning
minimum wage of 18000 per year and maximum 30, 000 per year. The average wage of the weavers in the
society works out to be Rs. 24000 per annum. This is a much better paid by other master weavers. A weaver
family
comprising of three members gets only Rs. 90 per day s wages direct form the master
weavers where as the weavers family form
purini society get wages of Rs. 125 per day/family.
This means that the wages being paid by puraini are higher by 28% which is average reasonable.
The weaver of Puraini weaver’s cooperative society availed of the following benefits:
Worksheet
Nil
Health
Nil
Insurance
25
10
ID Card
Nil
Credit
40
Loan
Other
Nil
Card
They had made a beginning by installing at their societies facility center by installing 10 improved frame
looms including Dobby and Jacquard loom
Presently they are organizing dyeing job from out side sources. However Bhagalpur does not have any
printing facility except there was few attempts for developing printing facility at the weavers Service Centre,
Bhagalpur. WSC Bhagalpur had given them training in weaving as well as in designing through local
designers.
This Purani cooperative society is on of the upcoming cooperative society which can o better in future with
the help of WSC and common facility Centre to be produced.
Other noteworthy cooperative societies operating in Bhagalpur cluster area re as follows:
1.
2.
3.
4.
5.
WEAVERFTCO : Bhagalpur proper
The Champanagar Tanti primary weaver’s co-opative society ltd. Moh- Champanagar Bhagalpur.
the sahebganj primary weavers cooperative society ltd, Moh: Sahebganj, Bhagaqlpur,
Dumrama primary weavers cooperative society Ltd., Dumrama , Banka
Daryapur primary weavers cooperative society ltd. Village P.O : Dariyapur, Bhagalpur