KHADI & Village Industries

Placement Training Report

INTRODUCTION OF KHADI INDUSTRIES

Khadi and Village Industries plays an important role for creating employment opportunities in the rural areas and there by strengthening the rural economy. Khadi is a part of our conscience and the symbol of our self-respect and self-reliance. Khadi spinning is also a very effective medium for and commercial harmony and nations unity. A wheel ties each person of nation with one thread called Khadi spinning when helped country to fight against exteme poverty and made India producing Khadi, Independently, which helped country in dvpt of textile. In India the Khadi and Village Industries have now gained permanence. Actually this Industry is deeply ingrained in Indian culture. In our freedom struggle the Khadi’s role is an unforgettable one. So all Indians must our great Mahatma’s Vision, Mission, attitudes about the khadi industry. Today khadi productions are more popular. Peoples all over the world purchase khadi products because of the quality and comfort of these products. All Khadi products become fashion symbol in today’s fashion world also. So Khadi and Village Industries have an important and well established place in the Indian industries.

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GANDHI ON KHADI Khadi in India was the symbol of freedom struggle. In 1920 at Nagpur session Indian National Congress decided to encourage Khadi. First Khadi production centre was started at Khthiawad in Gujarath. “ Mahatma Gandhi refilled Khadi as the Livery of freedom.” It was a weapon and best instrument for giving concrete expression to the Swedeshi spirit to boycott foreign goods, and rendered an opportunity to every man; women and child to cultivate self discipline and self scarifies as a part of non-cooperation . Gandhiji presented a best gift as a device to produce Khadi “THAKLI” spinning wheel which can be operated by handeyes. It was a “Mahasudarshana Chakkra” in the history of freedom struggle. It occupied very important place in our life and provided employment to lakhs of people. The spinning wheel rotated through decades. Now it, by evolution, changed into 6 spindle 8 spindle charkhas which help to enhance the production considerably. All charkhas however are hand operated.

MISSION The convenor of Khadi Mission, Wardha Khadi is a symbol of our national freedom struggle and of our commitment to Maximum possible self-reliance. The Khadi Gramodyog institutions are engaged in providing livelihood to Millions of spinners, weavers and artisans in rural areas. To survive, these institutions need active Government , by way of provision of credit, access to technology and Market . In the Mid fifties, a comprehensive plan was drawn up by the Government of India’s in consultation with the leaders of Khadi movement, to revitalize this important segment of our economy. However, no effective action has been taken to tackle the problems faced by Khadi and other village industries. As a result, unemployment in the rural areas is increasing day by day. To draw the country’s attention to the problems faced by Khadi, the convenor of Khadi Mission, Shri Balvijayji, who was a close associate of Acharya Page 2



Vinoba Bhave, has expressed his determination to go on fast from 17th August. I call upon the Government to take urgent steps to attend to the grievances of the Khadi industry so that we can all request Shri. Balvijayji not to undertake the fast.

VISION Khadi is a symbol of over national freedom, struggle and of our commitment to maximum possible self reliance. The Khadi Gramodyog institutions are engaged in providing livelihood to Millions of spinners, weavers and Artisans in the rural areas. To survive, these institutions need active government , by way of provision of credit, access to technology and Market . In the Mid fifties, a comprehensive plan was drawn up by the government of India, in consultation with the leaders of Khadi movement, to revitalize this important segment in our economy.

GANDHI SAID AS FOLLOWS Know that after my death, you will burn my Khadi from the housetops. Have to set up common service centre and training facilities for training promoters to organize new institutions take up Khadi and village industries activities in hitherto untouched area so that intensive area development on self reliant basis for full employment through Khadi and village industries become possible.  Every production and sale centre of Khadi should establish close through seminars and one day camps without least 100 new customers of Khadi.  The workers of institutions should be oriented in the philosophy of Khadi. So that they understand better its relevance and importance in the represent national and international context.  The bigger institutions should treat the smaller institutions in brotherly spirit and guide them in developing Khadi work.  The freedom and initiative of the Khadi institution and their workers should be preserved. Page 3



I believe that where there is pure and active love for the poor there is God also. I see god in every thread that I draw on the spinning wheel. (Young India, 20-05-1926) The spinning wheel represents to me the hope of the masses. The masses lost their freedom, such as it was, with the loss of the charkha. The charkha supplemented the agriculture of the villagers and gave it dignity. It was the friend and the solace of the window. It kept the villages from idleness for the charkha included all the interior and posterior. Khadi is the Sun of village Solar System. The planets are the various insudtries which can Khadi in return for the heat and sustenance they derive from it. Without it other industries cannot grow. But during my last tour discovered that, without the revival of other industries, Khadi, could not make further, progress for the villagers to be able to occupy their spare time profitability, the village must be touched at all points (Harison 16-11-1934).

INDUSTRY PROFILE Classification of Rural Industry

Rural Industry

Cottage Industry

Handloom

Tiny Industries

Small Scale Industry

Handicraft

Sericulture

Rural Artisans

Agri-based Industry

Khadi and Village Industry

Ancillary Industry

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Reflecting Gandhiji’s preoccupation with cloth and his linking of it to rural development in 1957, the government of India established Khadi and village industries commission (KVIC). For the extensive development of Khadi and Village industries programme, Kerala Khadi and Village industries association came into existence in the year 1955. Khadi and Village industry plays a significant role in the development of the economy. It contributes significantly to the national income and provides employment opportunities to the large number of the rural economy. Hence it seemed relevant to study the economic aspect of the Khadi.

KHADI AND VILLAGE INDUSTRIES IN INDIA India, a country with diversity is famous for its rich cultural heritage. Khadi industry is a part of Indian culture and tradition. About 70% of people live in villages. Any planning for the development of India could not be complete without embracing the rural aspects. Khadi and Village industries are traditional sub-sector of rural introduction in india. Gandhiji had appropriately realized the dual made in the rural society and its economy by the machine economy. He advocated Khadi and Village industries and self-sufficiency of the villages nad worked for the removal of the stigma untouchability and low status of the artisans. So that the artisans could not get his due place and pleased not to hear imported textile and their emerged a “SWADESHI MOVEMENT”. Gandhiji underlines the importance of rural India by saying that “India lives in Villages.” Gandhiji wanted to make every village self-sufficient by creating employment opportunities to them during the off season. For this he advocated Khadi and spinning wheel for clothing which forms the need of people.

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The industrial policy resolution of 1956, while emphasizing the role of cottage and small scale industries, started “they provide immediate large scale employment, they offer a method of ensuring a more equitable distribution of national income and they facilitate an effective mobilization of capital and still might have either wise remain unutilized.” India was known to the world for extensive use of cotton and silk goods. From about 1500 BC to 1500 AD for nearly 30 centuries India held the world monopoly in the manufacturing of cotton goods. India has a large pool of skilled labour. Capital is scarece and we have vast manpower, which must be utilized. Our steps must be labour intensive and not capital intensive. Khadi industry employs 32 million people (both full-time and part-time), ing for about 80 percentage of the employment in the manufacturing sector. In the statement of textile policy announced by the govt. in March 1981. It was started that “the Govt. is committed to encourage production of textiles and textile products in Khadi sector considering its large employment potential, it would be the endeavor of the govt. to make the product of this sector more competitive and of better quality.” Gandiji always felt that, all cannot be absorbed in agricultural and non-agricultural alternative employment is to be found. The main basis of Khadi program was its economic value, which is not divorced from human values. Khadi and Village industries presupposed the formation of skills relevant to rural area and the development of a well designed and broad based ing system, capable of assisting the new class of artisans, craft man, Industrialists and entrepreneur at all crucial stage. Khadi and Village industries programs forced on the poorest status of the society.

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Khadi and village industries have been developed under two periods one before 1947, and the other after 1947. Before 1947, the development of Khadi and village industries was entirely a non-governmental effort under the inspired guidance of Gandiji. After 1947, the govt. of India and the planning commission assumes the responsibility for fitting Khadi and village industries within the frame work of the 5 year plan. The history of Khadi and village industries can be analyzed under two headings.  Kahdi and Village industries in the pre-independence period.  Khadi and Village industries in the post independence period.

PRE-INDEPENDENCE PERIOD Mahatma Gandhi’s attempt to receive hand spinning commenced in 1915, when he first began to weave cloth out of mill-made foreign year. After 3 years of patience and strenuous effort he was able to see a spinning wheel at work in 1918. Khadi was a part of Swedeshi movement. It gave India’s a national identity and became a weapon for over throwing the British rule. Once Independence was achieved, the relevance of Khadi started declining. The all India congress committee held in Baswoda in1921 called upon the people to turnout 20 working charkhas during an era of flourishing textile mill. The congress committee setup a Khadi development in the year 1922. It was converted into All India Khadi Board in the year 1923 then into, All India Spinners Association (AISA) in 1925. Till the attainment of independence the AISA was actively engaged in receiving Khadi.

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POST INDEPENDENCE PERIOD The Govt. of India assumed responsibility for initiating assisting and financing Khadi under the auspices of the Govt. of India. All India Khadi and Village Industries Board was established in 1953. It was late converted in to a statutory body called Khadi and Village Industries commission in the year 1957. In the statement of textile policy announced by the Govt. in March 1981. It was stated that “Government is committed to encourage production of textile products intact Khadi sector considering its large employment potential, it would be the endeavor of the Government to make the products of this sector more compensative and of Better quality. Khadi and Village industries play a significant role in the development of the Indian economy. It contributes significantly to the national income and provides employment opportunities to a large number of the rural economy. However, the main basis of Khadi program was its economic value which is not divorced from human values. So these two periods really splits the Khadi industry clearly. These periods clearly draws the picture of Khadi and Village industries.

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ORGANISATION PROFILE Brief History:The Kerala Khadi and Village Industries Association Avinissery, Thrissur. In Kerala the Khadi works begins in 1920’s. The political climate of the state was also favourable for the organization of the work. Then finally they co-ordinated and formed the Cochin Village Industries Association in 1937. Financial Assistance is provide by the Cochin Government at that time. It’s works continued upto 1941 and merged with All India Spinners Association continued the work till 1945, all Cochin Khadi Trust was formed and continued the work upto 1955. The endeavors of some eminent Gandian workers of the state, the KERLA KHADI AND VILLAGE ASSOCIATION was existence in 1955. Among the prominent personalities who worked for the formulation of the institution include veterans like messes. E. Ikkanda Warrier (former prime Minister of the Cochin state), R. Krishna Iyer, V.R. Krishnan Ezhuthassan a Gandian of Avinissery, K.P. Madhavan Nair formal general secretary of the All India Congress Committee and his wife Smt. Pavizham M.N, C.K. Rama Iyer, K. Kochu Kuttan Ex. Minister of Kerala State, P.K. Krishnan Ex. MLA, Amrithlal Govardhanlal, V.Krishna Iyer and C.S. Panicker. These Institutions was ed under the Cochin Literary Scientific and charitable Societies Act No. 1 of 1955. Shri. R. Krishna Iyer and Shri. Ekkanda Warrier was the first president and secretary of this association.

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The association started work with 150 Traditional charkhas spinners and 6 staff . Khadi cloth worth Rs. 25000 was produced in the first year. Khadi industry has been implemented in Kerala by the Board as a solution for rural unemployment rather than of under employment. Though spinning and weaving activities are run as shed based program with scheduled working hours and holidays not many people are attracted to this sector. The total numbers of job seekers ed at employment exchanges in Kerala during the year 2000 was nearly 42 lakhs of which 55% were women. Inspire of mounting unemployment the state Khadi sector is unable to attract enough workers to operate even their existing charkhas and 100 ms. In state like are compared to that of any developed. Countries of the work, people prefer to be unemployed rather than to seek jobs in Khadi. Cotton Khadi is the main variety produced in Kerala above 50% of sale in 6th state is constituted of Musilm and silk items. The huge pile of stock with the board includes yarn and cloth made of cotton.

KHADI GRAMODYOG BHAVAN There are 7500 big and small Khadi gramodyog bhavans throughout the country. These are run by Khadi autonomous body under the ministry of Agro and Rural industry, Govt. of India. At present, the Khadi is involved in the production of a large number of items that include Khadi (Cotton, silk, Muslin and Woolen) and a wide range of village industry products such as honey, handmade paper, Agarbathi, Soap, Leather goods, Herbal Shampoo, Oils, processed cereals and pulses etc.

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The KVIC Act was amended in the year 1987 and “Rural Area” and Village Industries were defined under this Act. This created a very wide scope for village industries and service industries to be setup in rural areas only. Due to large number of a new products coming up for scale in the open Market it has not only increased the Market, it has not only increased the profitability of the show-room but also generated employment in rural areas. KVIC has made a strategy to adopt all the Marketing techniques, especially in the business of retailing, computerization in sales, bar-coding of products, renovation of old Khadi bhavans, Improving product quality, branding of products etc. To ensure wide acceptability among consumers, KVIC has started branding its products, at first savodaya brand was launched through private channels of distribution and Mumbai by Yaswanth Singh, the union finance Minister in October 2001 and initially toilet soaps, honey, agarbathis, pickles and spices were selected. Products under Khadi brand have been developed and it has been decided to develop a new range of products such as berbals, essentials, designer garments etc was formally launched for test Marketing at excluding Khadi stores in New Delhi.

SALIENT FEATURES OF KHADI INDUSTRY IN AVINISSERY The Association is one of the major Institution directly aided by Khadi and Village industries commission in the Kerala state. Avinissery Khadi is the pioneers in the field of Muslin Khadi. Kuppadam weaving is an art of Kerala Khadi weaving. Then all these products attract and conquer the market all over India. Main activity of these Khadi industry is to production, Marketing. A small type of dye house and printing section is working in the Head Quarters Complex in Avinissery. Apart from Khadi, the institution is engaged in village oil industry with 4 power Ghanies, Laundry soap, production and honey processing in the Avinissery complex.

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A fully equipped carpentry workshop is functioning at Avinissery for the manufacture and repairs of charkhas, looms and other implements and furniture and wooden Handicrafts. The Avinissery Khadi industry is the pioneers of 8 spindle woolen Muslin charkhas, approved by the Khadi and VI commission and acclaimed by the institutions all over India. In 2010-11 the institution head a production of Khadi worth Rs. 4.37 Crores and village industries products valued at Rs. 3.50 Crores. Total sales 8.80 Crores. There are 110 regular employees and 1500 rural Artisans. The main production areas of the industry in Avinissery are;  Silk Khadi Production  Carpentry and Blacksmithy  Agmarked Honey Production  Ghani Oil  Cane Furniture etc A small type of Dye House and printing section is located in the Head Quarters complex at Avinissery. There are 31 production centres and 15 sales centres under the institutions spread over the districts of Malappuram, Palakkad, Thrissur and Eranakulam. The institution has its own land and building worth Rs. 100.00 Crores located in 37 places in 24 panchayaths. The association has been working continuously on profit in the last twenty two years.

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OBJECTIVES OF THE KHADI AND VILLAGE INDUSTRIES The Khadi and Village industries are established in certain objectives in view. These objectives are: To rise out the unemployment and under employment problem in the country.  To promote the Khadi products more and more.  To provide job opportunities to the weaker sections of the society especially women, windows and less educated in rural areas.  Khadi programs main provides a source to earn the daily bread of artisans.  To help in achieving better std of living and culture in the country.  To provide Gandian attitudes to the society as a part of social objective.  To ensure the maximum utilization of locally available raw materials in the country.  To achieve the regional balance in the country.  To ensure the eco-friendly products to the consumers in the country that means it’s a function of preserving ecological stability and providing healthier products.  To promote the export of the country and to reduce poverty and achieve the economic stability.  To establish a prestigious position among other countries in the world.  The main basis of Khadi programme was its economic value which is not divorced from human values.  To preserve craftsmanship and Art heritage of the country.  To spread Sarvodaya ideology amongst the people through establish libraries, hold meetings, conference, exhibitions etc.  To organize and establish village industries.

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THE DISTINGUISHING FEATURES AND MAJOR ADVANTAGES OF KHADI AND VILLAGE INDUSTRIES  In an economy like India more abundant labour supply and the concomitant unemployment and under employment and rapidly rising labour force, Khadi, Village and small industries assume special significance because of its high employment potential.  Another major advantage is their ability to provide employment in the off-season. To a large number of people, agriculture provides only seasonal employment. Khadi, Cottage and some other village industries provides employment opportunities during the off-season and help many household to Miligate their problems during the offseason.  Khadi, Cottage and certain other village industries provide vast scope for employment of special categories of people like women, children, old-ages, physically handicapped etc. It is also an avenue for part time employment for those who are employed elsewhere either full time or part time.  Some of the industries provide employment opportunities within the household premises and some others near the place of residence. The locational advantages of these industries are thus very great.  A major advantages of these industries is that the capital output and capital labour ratio’s are comparatively very low. That is the amount of capital investment required per unit of employment and the capital investments required per unit of output are comparatively very low. In other words, the Khadi and Village industries in particular and the small scale units in general maximize employment

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and output for a given amount of capital. This is of particular importance to a labour abundant and capital scare economics.  Because of the low capital output ratio and low gestation period they promote Non-inflationary growth.  Khadi and Village industries have been found to be of particular help to the leaker sections of the society. The participation of the scheduled castes, scheduled tribes, women and other weaker sections of the society in this sector is significant.  These industries promote economizing of resource utilization and conservation of resources. They are expected to ensure maximum utilization of locally available raw materials by adopting easily adaptable techniques. In some cases, non-conventional raw materials are used, thereby converting waste in to wealth.  These industries can develop in almost all areas including backward, tribal, hilly and inaccessible areas.  The small industries have acquired more attention in recent years due to the very less ecological problems they create, compared to the large industries.  As Khadi and Village industries do not use or use only very little electric power or oil, they do not cause energy crisis and foreign exchange crisis.

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The Units working under this association are

PRODUCTION UNITS Sl. No.

Name of Production Centres

1

Avinissery

2

Choorakkattukara

3

Erumapetty

Kadavallur 4

5

Kodakara

Sub-centres

Spinning/Weaving

Kuttumukku Poothole Avinissery Arimbur Peuvanam Choorakkattukara Puranattukara Choolossery Varadiyam Attoor Puvathur Choorakkattukara Peramangalam Pazhunnana Thonalur Erumapetty Arikanniyur Kiraloor Mundathi code Kadavallur Peringode Othaloor Karukaputhur Pathepadam Poolani Koovakkattukunnu Kuttikad Alathur

Spinning / Weaving Spinning / Weaving Spinning / Weaving Spinning Spinning Spinning Spinning Spinning Spinning Spinning Spinning Spinning Weaving Weaving Weaving Weaving Spinning / weaving Weaving Weaving Spinning Spinning / weaving Spinning / weaving Spinning Weaving Spinning Spinning Spinning Spinning

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Mayannur. P.C

6

Mayannur Thonoorkkara Pazhayannur Panjal Trikkur Mukkattukara Kuttanellur Kolazhy Vettukad Marottichal

Spinning / weaving Spinning / weaving Spinning / weaving Spinning Spinning Spinning / weaving Spinning / weaving Spinning Spinning Spinning

7

Trikkur

8

Peringottukara

Peringottukara

Spinning

9

Chirakkal

Chirakkal

Weaving

10

Trichur

Trichur

Spinning/weaving

KHADI AND VILLAGE INDUSTRIES PRODUCTS Khadi means any cloth woven on handlooms in India from Cotton, Silk or woolen yarn handspun in India or from mixture of any two or all such yarns. Industries coming under the preview of village and Khadi industries include (i) Bee Keeping (ii) Cottage Match, Manufacture of fireworks and Agarbatties (iii) Cottage pottery (iv) Cottage soap (v) Flaying curing and tanning of hides and skins and ancillary industries connected with the same and cottage leather industry (vi) Ghani oil (vii) Handmade paper (viii) Manufacture of cane-gur andKhandasari (ix) Palm-gur making and other palm products (x) Processing, packing and Marketing of cereals, Pulses, spices, condiments, massalas etc. (xi) Manufacture and use of manure and methane gas from cow drug and other waste products (Such as flesh of dead animals, night soil etc.) (xii) Lime stone, lime shell and other lime products (xiii) Manufacture of shellac (xiv) Collection of forest plants and fruits for medicinal purposes (xv) Fruit and vegetable processing, Page 17



preservation and canning including pickles (xvi) Bamboo and cane work (xvii) Black-smithy (xviii) Carpentry (xix) Fibre other than coir. (xx) Manufacture household utensils in aluminium (xxi) Manufacture of Katha (xxii) Manufacture of gums and resins (xxiii) Manufacture of polyvastra (xxiv) Processing of Maize and Ragi.

PROMOTIONAL MEASURES A number of measures have been taken by the Governments, Central and state, to protect this sector from the onslaught of the large sector and to promote the growth of Khadi and Village industries. Measures taken by the Govt. from time to time, include reservations, upward revision of investment ceilings in the definition, reservation of products for the SSI’s, Increasing credit flows, preference in Govt. purchases, Modernisation, technology, upgradation and improving export performance. Infrastructural and institutional s are provided through industrial estates, District Industries Centres (DICs), Small Industries Service Institute, Khadi and Village Industries Commission (KVIC) and other specialized institutions which provide technical Assistance, testing facilities etc. The National Small Industries Corporation (CNSIC) arranges supply of machines on hire purchase to small scale units. Marketing Assistance including export promotion assistance are provided by institutions such as the NSIC, The Small Industries Development Organization (SIDO), Handicrafts and Handlooms Export promotion corporation, KVIC etc.

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Financial Assistance is provided at concessional by commercial banks, State Level financial Institutions etc. In order to setup the flow of assistance to the small sector and to provide a focal point to co-ordinate at the apex level the availability of both financial and Non-financial inputs required for the orderly growth of this sector, the Small Industries Development Bank of India (SIDBI) was established in 1990. Among all the Assistance provided by the various institutions. KVIC plays an important role.

KHADI AND VILLAGE INDUSTRIES COMMISSION (KVIC) The Khadi and Village Industries Commission is a statutory organization engaged in the task of promoting and developing Khadi and Village Industries with a view to creating employment opportunities in the rural areas and thereby strengthening the rural economy. It was established in 1975 by an Act of parliament. It is an autonomous body which took over from its predecessor, the All India Khadi and Village Industries board setup in 1953. Objectives:The broad objectives of KVIC has set before it are: The social objective of providing employment.  The economic objective of providing saleable articles and  The wider objective of creating self-reliance amongst the people and building up a strong rural community spirit. The KVIC is a service organization to render following service. 1. KVIC has setup multi disciplinary training centres at different place of the country. 2. KVIC also arranges development of technology and provides technical supervision for installation and operation of machinery and equipment. They also supply plant and machinery, tools etc in kind.

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3. KVIC conducts Market study and provides marketing to the artisans/Societies for sale of their products through the gramodyog sales report and exhibition. The KVIC has created an organizational base for further development with many state KVI boards, a large number of ed institutions and industrial co-operatives. KVIC has a very large number of sales outlets in the country. This is a unique national organization in the country which has its roots in the villages and has wide organizational linkages. It activities cover numerous villages in the country. A substantial number of beneficiaries belong to the scheduled caste and scheduled tribes and inhabitants in hill and border areas. The participation of women in the activities is also very high.

FUNCTIONS AND DUTIES OF KVIC The functions of the commission shall to be plan, promote, organize and assist in the establishment and development of Khadi and Village Industries in the rural areas in co-ordination with other agencies engaged in rural development wherever necessary. 1. To buildup reserves of raw material and implement and supply them to persons engaged or likely to be engaged in production of handpunyarn or Khadi or Village industries of such rates as the commission may decide. 2. To plan and organize training of persons employer or desirous of seeking employment in KVIs. 3. To encourage and assist in the creation of common service facilities for the processing of raw-materials or semi-finished goods and for otherwise facilitating production and marketing of Khadi products.

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4. To promote the sale and marketing of Khadi or products of village industries for the purpose to forge links with established marketing agencies wherever necessary and feasible. 5. To encourage and promote research in the technology used in Khadi and Village Industries, including the use of Non-conventional energy and electronic power with a view to increasing productivity, eliminating drudgery and otherwise enhancing their competitive capacity and to arrange for dissemination of salient results obtained from such research. 6. To undertake directly or through other agencies studies of the problems of Khadi and Village Industries. 7. To promote and encourage co-operatives efforts among the manufactures of Khadi or persons engaged in village industries. 8. To establish and maintain separate organizations for the purpose of carrying out any or all of the aforesaid matters. 9. These industries promote economizing of resource utilization and conservation of resources. To ensure maximum utilization of locally available raw-materials by adopting easily adaptable techniques.

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OBJECTIVES OF THE STUDY The study about the Khadi and Village Industries is conducted by considering various objectives in view. So the main objectives are: To study the organizations production, Marketing and the channels of distribution is conducted.  To know about the techniques used in the Labour intensive industries.  To know about Low well the departments in the organization are coordinated.  To study the Khadi Industry adopt various strategies to meet the specific situation.  To study the steps in the production of quality products in Khadi and the determination of cost of production.  To know about the various problems faced by the Khadi Industry.  The study helps to determine the causes of problems faced by the Khadi and Village Industries.  To know the real reason for fixing high prices for Khadi products.  The capital and labour supply in the Industry.

RESEARCH METHODOLOGY (i) Observation The data and information is conducted to collected by visiting the company. An in depth observation and mere watching helps to obtain and understand the facts in the industry. (ii) Unstructed Interview A normal conversation is conducted to collect information from employees. The labours are ready to share the ideas and each and every functioning of the industry. Free and sincere approach of the labours helps clearly understand all the details of the organization. The data collection methods are mostly very much useful and suitable to know more details and working of the industry. Page 22



REGISTRATION The Khadi and Village Industries Commission (KVIC) is a statutory body created by an act of parliament (No: 61 of 1956). It came to existence in April 1957. The KVIC took over the work of erstwhile All India Khadi and Village Industries board. The original Act of 1956 has been subsequently amended during the year 1987, 1989 and 1994. The istrative Ministry of the KVIC is ministry of Agro and Rural Industry Govt. of India.

TRADE UNION PRESENCE Under Khadi and Village Industries Association in Avinissery unit there is two trade unions namely. 1. Kerala Khadi workers union – INTUC, CITU 2. Kerala Khadi staff Association – Independent Unit A trade union is any combination of persons, whether temporary or permanent primarly of the purpose of regulating the relation between workers and employees, or between workers and worker and for imposing restrictive condition on the conduct of any trade or business and includes the federation of two or more trade unions.  Trade unions are an association of or independent workers.  Trade union is ready to adopt according to environment.  of a trade union have common interests and problems, which motivate them to unite.

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COMPETITORS Competition means the act of competing a contest and competitor is one who competes. It refers to rivalry among various firms operating in a particular market that satisfy the same customer needs. The industry structure affects long run profitability. Therefore the competitors should be understood and monitored. Their actions can spoil an otherwise attractive industry, their weakness can be a target for exploitation, and their response to a firms marketing initiatives. Can have impact on its success. Competitive information can be obtained from marketing research surveys, recruiting competitors employees. Competitors are those companies who are producing technically similar products are considered to be in the competition. The two means of competitive advantage of low cost of delivery and differentiation, when combined with competitive scope of broad activities results in four generic strategies: Differentiation  Cost Leadership  Differentiation Focus  Cost Focus The company in facing severe competition from the competitors and the industry is now following a price at trend. The main competitors of Khadi village industries are:• Kitex • Bombay dying • Mafathlals

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MARKET SHARE Our company Khadi and village industries possess 20% of share and the rest of the market is captured by Bombay dying Kitex Mafathlal

-

40% 25% 15%

Chart 40.00%

25.00% 15.00%

Bombay dying

Kitex

Mafathlal

WORKFORCE There are 110 permanent office staffs and 1500 artisans in Khadi and Village Industries Association.

BANKERS Camera Bank State Bank of India District Co-operative Bank

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SCOPE OF THE STUDY The analysis of financial statements provides indepth knowledge regarding the financial position of the Khadi and Village industry. It may be considered as one of the principal component of the planning system.

FUTURE PROSPECTUS & GROWTH PLANS To encourage production of textiles and in each Khadi sector considering its large employment potential, it would be the Endeavour of the government to make the products of this sector more competitive and better quality.

Growth Plans    

Charkha and loom installation. Introduce of industrial units. New marketing outlets. Welfare measures to the workers.

LOCATION OF THE STUDY The present study is confined to Avinissery panchayat of Thrissur District were the central office of Khadi and Village Industries Association is situated. LIMITATION OF THE STUDY Lack of time or limited time is available to complete the study. So time constraint is an important obstacle to collect data’s in detail.  Lack of complete information.  The labours are in work so they are not able to share their ideas in detail.  The officers busy works etc are the important limitations of the study.

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ORGANIZATION STRUCTURE

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BOARD OF DIRECTORS The Governing body consists of 16 including 2 Artisans and they are as follow. Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Name C.N. Balakrishnan V.Kesavan M.N. Krishnan Kutty K.K. Divakaran M. Mohandas T.S. Muralidharan C.A. Nandakumar C.K. Nandakumar T.R. Vasudevan M.S. Sivarama Krishnan T.R. Elsy Sarama Matheppan P. Rajendran Indira Radha Krishnan

15

A.K. Chandramathy

16

P.K. Rathanmala

Post President Secretary tSecretary Treasurer Member Member Member Member Member Member Member Member Member Member Artisan Member Artisan Member

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PRODUCTION DEPARTMENT The function of this department is very much important. This department is headed by the production Manager. Under this unit manager, Supervisors, workers are working. The main important aspects of this department are to ensure about the quality assurance of the each product that were making at their own premises. Production is the bigger picture of various functions that affect the overall process and quality of an organizations service or manufacturing. The production management deals with processes, resource allocation, and quality to run the business day to day in an efficient and effective manner production management techniques are used in both manufacturing and service industries. The production manager are responsible for managing both physical materials doing a wonderful job to make their effort worthfulness.

OBJECTIVES OF PRODUCTION DEPARTMENT Production is an organized activity in a manufacturing organization. Each organized activity must spell out its objectives so that its existence can be justified on the basis of the degree of attainment of these objectives. 1. The unit cast of the product should be estimated carefully and efforts should be made to stick to the cost standards. 2. The industry’s production department should take utmost care in maintaining quality levels. 3. Setting of proper manufacturing quality levels. 4. Setting of proper manufacturing schedules to ensure time lines. 5. Optimum utilization of inputs of production like men, material and machines.

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PRODUCTION PROFILE AND ITS PROCESS.

PRODUCTION MANAGER

SUPERVISOR

OTHER STAFFS

ARTISANS

The supply of cotton to the Kerala Khadi and Village Industries Association is mainly from the cotton growers co-operative Society in Pollachi and Thripura in Taminadu. This cotton is processed at KVIC Central Silver Plant at Kuttor and silver roving supplied to Khadi institutions. However, cotton for NMC ( Non Metric Charka) 50 count is processed at Avinissery silver unit of Kerala Khadi and village Industry Association for other societies, silvers are supplied by KVIC Kuttur. Association is also purchasing silvers from KVIC Kuttur directly. Silver are converted in to yarn by spinners of the association and spinners of other societies. Kerala Khadi and village industries association have a mini warping unit at Avinissery. However this unit is not able to meet the warp requirements fully chemicals for the dying unit are brought mainly from Kannur and bleaching of cloth is done in the Avinissery complex.

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PRODUCTION PROCESS There are two main processes in production of Khadi. They are  Spinning  Weaving

SPINNING Spinning process includes cleaning of cotton, lap making and making ravings/ silvers. These silvers are then converted in to yarn.

WEAVING In weaving there are two motions, primary potions and secondary motions. Primary motions include shedding, picking and beating motions are performed in successions, which are in total called as weaving. Secondary motions are let off of warp and taken up of cloth. For every insertion of the pick, the cloth length grown up. The cloth woven is wound on the cloth roller continuously or immediately to keep the fall of the cloth in constant position. This called take – up of cloth. The preparatory processes chiefly employed for the warp may be classified into winding, warping, sizing and looming.

a) WINDING This is the process of connecting the yarn from one packages form to other convenient package form. The object of this process is to convert the packages containing less length yarn in to packages longer length yarn. Normally for the Khadi industry, the yarn is received in the form spinning mills and converted in the form of bobbin / cone / cheese winding machines.

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b) WARPING In the warping process, the individual yarn form the longer length packages combined and drawn together as a sheet containing certain number of threads of definite length. The individual thread in the warp sheet is called ENO. The sheet of warp is either converted in to ball form or directly wound on to another packages called warp beam as per the next sequence of process.

c) SIZING Sizing is the most important process in the preparatory sequence while weaving lave yarn is subject to more stress and strain than weft yarn. Hence yarn used in warp should have more strength than the weft. If folded yarn is used in warp, there is no necessity of sizing because folded yarn has got more strength than the single yarn. When single yarn is used in wrap, it is most to size it to make smoother, round, stronger yarn. For the khadi industry, sizing is carried in the yarn or bank or wrap sheet form.

d) LOOMING The end from the wrap beam is either ed with old wrap by twisting I knotting of old draft is continued or it is ed through the heated and reed of the loom if the new draft is required. The operation is called “Drafting and Denting” respectively. Then the wrap sheet kept in proper alignment and tension between wrap beam and cloth by the process called “gaiting”. Now the wrap is ready in the loom for weaving.

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WEAVING When a fabric containing size is received at the gye house the through removal of size is essential to make the fabric easily and completely wet. During scouring and bleaching which are regular features of the processing, the size cannot be removed. The presence of size in the fabric reduces the efficiency of the subsequent purification processes and hinders the dying apart from making the material water impermeable. Hence resizing process in very important with cotton fabrics. As the dying activity is to be undertaken on a very pollution can be assessed only when the dying unit becomes operational.

PROCESSING AT STREET WEAVER LEVEL Spinners get readymade silvers. This silver is converted into hanks and hanks are supplied to the society. The yarn hanks are first socked in water for 2 days and stumped to remove the yellowness / impurities from the yarn. This process is repeated for few days. Some of the weavers boil the yarn in water to quicken the process of soaking. Then the yarn is dries and run on the warping machine for definite length and number of threads and sizing is done with starch outside the worksheet (street warping). The preparatory work is either done by the weaver in the area a job work basis. The whole process takes 7 – 8 days. The prepared warp is then knotted (ting). After weaving, the final product is taken to the society.

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MACHINERY / EQUIPMENT / LOOM CHARKA There is different type of charkas used for spinning viz 6 spindles, 8 spindles. LOOMS Mostly frame looms are in operation in the organization. In the case of Kuppadam, a single design box (Pettu) is used. FRAME LOOM A loom with all the required accessories kept together is a frame. Normally this loom will be place on the ground without any fittings or foundation bolt. The loom remains stable on the variety of cloth to be woven. The loom will have a rest, slay, and head to sit. In most cases the loom is used to weave coarser verities of fabric.

PRODUCT LINE A product line is an expression used to describe a group of closely related products. It is a part of the product strategy to determine whether an organization will have a single product or more than one product. It is a group of products that are related in the same way be being alternatives to fulfilling the same customer need by being marketed to the same target markets on through the same distribution network or by being in common price category. A product line is able to satisfy a class of need to be used together to be sold to the same customer groups, to be moved through the same distribution channels or fall within given price changes. The product line of khadi industry include Muslin Khadi, Medium Khadi, polyvastra, silk, weaving machinery, new model charka-muslin and poly thread, cane furniture, honey, soarp, oil. Page 34



TYPES OF PRODUCTS The Khadi and village industry (K. V. I.) sector products a wide range of exclusive products, which are having distinct characteristics. These products are as under.

a) KHADI Handspun and hand woven khadi is very comfortable to wear compared to the artificially made synthetic fibers like Nylon, Rayon and Terylen etc. The products are cotton, woolen, silk and polyvastra khadi. Cotton khadi is 100% of cotton, which was a great demand abroad, and it is available in different shades and colours. Attractive readymade garments are being designed in the form of Kurta – paijama, shirt, ghagra, choli, salvar – kammis and other attractive garments.

TYPES OF KHADI (i) Cotton Khadi It is one of the types of Khadi, which include 100% of cotton. Dhothies. Lungies, towels, shawls etc are included in this category. (ii) Silk Khadi Silk khadi comes in various categories like tussar, matka etc.Silk khadi can be converted into shirting, into attractive saris with sari boarder or printed sari such as balucuchari saris, which has rich embroidery or Kanjeepuram with its intricate designs woven in silver or golden. (iii) Woolen Khadi

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Woolen khadi items consisting of sweaters, mufflers, blankets and socks.

(iv) Polyvastra khadi Polyvastra hadi consisting of shirting and suiting in attractive shades and designs including dress materials and saris. (v) Muslin Khadi This type of khadi is very thin, which comes under 90s, 150s and 100s.

b) FIBER Fiber utility items are made out of sisal banana, pineapple, palm and other fibers. Some of the products include bags, table mats, wall hanging, carpets, floor mats, floor plot, holdersets. Palm fiber products like fancy bags, baskets, mats etc. are in great demand.

c) LEATHER Leather products range include footwear, like Kolapury chappals, sandals, shoes, purses, brief case, jewels bags, attractive readymade garments etc.

d) CANE AND BAMBOO Fancy utility articles by using cane and bamboo as raw materials are produced in the north eastern parts of country. The items like furniture, sofa sets, partition wall, mats, handy crafts items etc. can be supplied in bulk quantity.

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e) AGARBATTI Incense sticks with fragrance are available in different verities, which has good demand in India and abroad. Women workers make incense sticks. In foreign country, agarbatti is used as incense in place of artificial air purifier.

f) PROCESSED FRUIT PRODUCTS This is one of the activities taken up by the institutions and cooperative societies and financed by the commission. Products like mango pulp, juices, chatni etc are exported in large quantity. The products are covered by FPO (Food Product Organization) license.

g) HANDMADE PAPER This is a beautiful product which was the cloth rags and waste paper as raw material for production, thus contributing in saving the trees and hence preservation of ecology. The strengths of handmade paper are as follows; • Long product life (100 years or more) • Uniqueness in texture • Eco friendly, does not use wood pulp as raw materials and hence save trees. • Convert waste into wealth, through recycling nature. Handmade paper product range from stationary items like files, letter pads, envelops, fancy bags, visiting cards, greeting cards, watermark, certificate and decoration materials, photo album etc. There is a market for this product in particular.

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h) HONEY Honey is natural syrup collected y honey bees. There are two types of honey produced. One by the bees produced in forest and another apiary honey produced by installing colonies of bees and maintaining this in systematic manner. Honey is also used as cough syrup, blood purifier and as a general tonic. The honey in India is costlier than in the International market. However, this can be overcome by minimizing wastage and increasing the productivity.

i) POTTERY AND STONE WEAR ITEMS Clay articles produced in rural areas by potters known a prajapaties are in great demand in the country as well as abroad. In market, fancy pottery items and terra cotta are in great demand.

j) PAPAD AND MASALAA Papad and Masala are in great demand in India and abroad. Mahila Hriha Udyog Lijjat Papad of Khadi and Village Industry, exports papd and masala to UK, USA, Gulf Countries and Newsland.

k) HERBAL PRODUCTS K. V. I. produce a number of herbal products like herbal shampoo, tooth powder, health tonic like Chyavana prash and Churnas.

PRODUCTION UNITS The main production units are situated at Choorakkatukara, Erumapetty, Kadavallur, Kodakara, Thrikkur, Peringottukara and Thrissur.

Avinissery, Mayannur,

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FUNCTIONS AND RESPONSIBILITIES OF PRODUCTION MANAGER FUNCTIONS The important functions of production manager are:1. Manage and control the logistic function to ensure supplies of rawmaterials, finished goods, parts and accessories are available within required time frames and budgets. 2. With the planning and controlling production manager, develop, direct the implementation of production business strategies and activities to enable the production to achieve output and quality objectives. 3. With the R & D Engineering Manager, develop, direct the research and development/engineering activities to ensure products and Techniques achieve business needs within the standard. Set by the market and the regulatory standards bodies. 4. With the warehouse and Distribution Manger, develop, direct and control the workhouse and distribution activities to ensure the efficient and economical utilization of facilities for storing and distributing the finished goods. 5. The Production Manger, develops, directs the implementation of manufacturing sustainability strategies / action plans and continues improvement programs. 6. The Production Manger must also monitor operations to ensure that planned output levels, cost levels and quality objectives are met. 7. The maintain and efficiency production process with a a workforce that can readily adapt to new equipment and schedules.

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RESPONSIBILITIES 1. Responsible for directing the production activities to ensure the current and future plans of the organization are met. 2. Report to the Managing Director on major production issues and results. 3. Participates in group corporate planning and budgeting workshop. 4. Responsible for establishing production organization structure / management process. 5. Responsible for implementation of policies or procedures throughout the production department. 6. Responsible for recruitment / selection / orientation training of seniors personnel of the production department. 7. Responsible for purchase of capital goods / production operation equipment. 8. Responsible for production planning / budgeting 9. Responsible for cost control programs. 10.Responsible for individual relation or union negotiation 11.Responsible for building maintenance 12.Assist in creation of efficient process through hands – on development and training.

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PRODUCTION DEPARTMENT STRUCTURE

CHAIRMAN VICE CHAIRMAN SECRETARY PRODUCTION MANAGER UNIT MANAGER SUPERVISOR WORKERS

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ANALYSIS AND INTERPRETATION Analysis and interpretation are the integral parts of the study. The important objective of analysis of data is to provide answers to the questions activated in study. After processing of data the next step is the analysis of data. Analysis of data means studying the material in order to determine in herent facts or meanings. In other words analysis means the searching for pattern of relationship that exists among data groups. Interpretation refers drawing inferences from the collected facts after analytical study. So, the interpretation has two major aspects namely establishing continuity in study through linking the results of a given study with those of another and the establishment of some relationship with the analysis data. So we can conclude that, the analysis and interpretation are like the two sides of a coin. Analysis is not complete without interpretation and viceversa. So, both are interdependent. In this study about the Khadi and Village industries, the analysis and interpretation stages convey an important role. To get a clear cut idea about the industry is obtained by the process. This analysis and interpretation stages move through important aspects of an organization. So these study clearly wipeout all the doubts about the Khadi and Village Industries. So, Analysis and interpretation process is an unavoidable thing because of its tremendous advantages and good results. To know clearly about the Khadi and Village industries it’s really suitable to start from its route that means start from small scale industries. Classification of small scale industry gives a clear view about the Khadi and Village Industries.

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CLASSIFICATION OF SMALL SCALE INDUSTRY Small Scale Industry

Traditional 1. 2. 3. 4.

Khadi and Village Industries Hand loom Coir Industry Sericulture

Modern Small Scale 1. 2. 3. 4.

Export Oriented Units Ancillary Units Tiny Units Service Units

VILLAGE INDUSTRIES PRODUCTS Honey, Pickles, Edible Powders, Appalam, Vadamvathal, Soap and Bathi varieties and Bakery Products, Badam, Pista, Cashew, Kashmir Saffron, Amala, Honey, Dhall and Navdanyam verities etc. All these products are natural, pure and offer a high amount of quality: Not even an artificial blend is included in the product. In this highly competitive world customer can purchase any kind of product without any fear. That means these products are completely natural, eco-friendly and healthy. Khadi and Village industry plays a significant role in the development of the economy. It contributes significantly to the national income and provides employment opportunities to the large number of the rural economy. Hence it seemed relevant to study the economic aspect of the Khadi. There are many variety products offered by Khadi and Village industries. Because of its variety and differentality the customers mostly are from foreign countries. So these essential pieces of Khadi cloths are:-

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KHADI COTTON Printed and Woven furnishing, Door carpets, Kalins, Bed sheets and Bed spreads both woven and printed, printed screen, Kalamkari Prints, Jaipur and Bombay prints, Jacquard designs etc., Dothies, Lungies, Towels, Turkish and Shawls. READYMADES FOR GENTS AND LADIES Cotton and polyvastra, Shirts, Slacks, Jubbas, Pyjamas etc, Churidhars, Salwar Kammis, Midi, Nighties, Fancy market bags, Pillow Covers, Mirror Work square and Round Cusin Covers etc. Mattresses, Pillows, Quit, Square Cushion, Bloster with pure Silk cotton. WOOLEN Blankets, Shawols, Sweaters, Muffler and Caps etc. SILK Kancheepuram, Jari-Sarees and Printed Silk Sarees. HANDICRAFTS Jewellery, Rosewood s, Teapoys and Brass, Pooja Articles, Sandalwood and Leather Articles, Dolls and Gift Articles, Steel upboard, Costs and Wooden furniture. All these items of Khadi are rare pieces and it’s an eye appealing scene. Window displaying is so cute and simple. The neatness of the atmosphere forces the customers to purchase the products from Khadi. So, by all means Khadi’s variety products toucher each customers wants, needs and ideas.

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In the following table briefly explain the details about production and sales unit in KVIC in the year 2009-10 (Rs. In Lakh)

PRODUCTION DIFFERENT UNITS Name of Units

Production 2009

Sales

2010

2009

2010

Profit/Loss 2009

2010

Silver

72.78

77.37 61.32

61.56

57+

1.83-

Die House

16.61

18.99 -

-

4.98+

8.16+

Warping

7.43

8.08

5.81

0.72+

0.78+

Saranjan

51.78

32.47 56.92

43.87

12.89+ 8.13+

Oil

4.87

5.57

4.18

7.35

0.36-

0.19+

Soap

0.24

0.26

0.37

0.4

0.04-

0.04-

Honey

16.64

18.57 14.83

15.67

5.66+

8.48+

Cane furniture

2.01

1.82

3.8

0.22+

0.12+

51.16

80.01 57.47

80.9

0.98+

3.1+

Readymade manufacturing

7.3

3.58

INTERPRETATIONS From the above table, the total production is increased in the year 2009-2010 compound with the past year, 86.02 (Rs. Lakhs) are increased. But the production of charkhas and furniture are in down position.

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PERFORMANCE OF KHADI AND VILLAGE INDUSTRIES IN VARIOUS PLAN PERIODS (AVERAGE) (RS. IN LAKHS) Khadi P l a n p e r i o d s

Pr od uct ion on val ue

S a l e s V a l u e

Village Industries

Em ploy men t in lakh s

W a g e s

Pr od uct ion Va lue

S a l e s V a l u e

Em ploy men t in lakh s

W a g e s

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PERFORMANCE OF KHADI AND VILLAGE INDUSTRIES IN KERALA (AVERAGE) (RS. IN LAKHS)

Source: Annual reports of Khadi and Village Industries commission 1998-1999 to 2009-2010

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PERFORMANCE OF KVIC DURING PLAN PERIOD

The performance of Khadi and Village Industries in India in various plan periods as shown in the table – 1. Table – 1 shows that the value of the production of Khadi and Village Industries in India stood at Rs. 377 lakhs in the first plan period in eighth plan period 1992-97, resulting in more than 119 fold increase. The value of scales of Khadi by Khadi and Village industries, stood at Rs. 302 lakhs in the first plan period 1953-56. It gradually increased to Rs. 48734 lakhs in the eighth plan period 1992-1997. The employment generated by Khadi and Village industries in India shows a fluctuating trend and it varied between 5.20 lakhs employees in the first plan period 1953-56 and 132.96 lakh employees in the sith plan period 1980-85. Similarly the wages period in Khadi by Khadi and Village industries in India shows a fluctuating trend and it varied between Rs. 266 lakhs in the first plan period 1953-56 and Rs. 20250 lakhs in the eighth plan period 1992-97, resulting in more than 76 times increase in the payment of wages. The value of production of village industries in India stood at Rs. 617 lakhs in the first plan period 1953-56. It gradually increased to Rs. 320569 lakhs in the eighth plan period 1992-97, resulting in more than 519 fold increase. The value of sales of village industries stood at Rs. 72 lakhs in the first plan periods 1953-56. It gradually increases to Rs. 354302 lakhs in the eighth plan period 1992-97, resulting in more than 4920 times increase. The employment generated by village industries in India, which stood at 3.04 lakh employees in the first plan period 1953-56 gradually increased to 40.85 lakh employees in the eighth plan period 1992-97.

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Similarly the wages paid for the employees by village industries stood at Rs. 222 lakhs in the first plan period 1953-56. It gradually increased to Rs. 105875 lakhs in the eighth plan period 1992-97, resulting in more than 476 times increase in the payment of wages.

ACHIEVEMENTS In order to run the bhavans in a most attractive manner, we have introduced modern marketing techniques after careful study of customers preference and fashion trends and to cater to the needs of the customers, we have taken pains to get the proper materials from Khadi institutions all over the country. Our Bhavans is the pioneer among the Khadi Institutions in introducing Khadi readymade garments, which have a name throughout the country and we are giving utmost importance to creativity and innovation in readymade production. Apart from Khadi goods we are selling a wide range of village industries products like honey; edible oils, soaps, pulses etc. in its quest for keeping alive the varied arts and crafts, Khadi bhavans started arranging a number of exhibitions silk saree exhibitions with the display of multi famous verities of Kancheepuram, dharmavaram, puttaparthy, Orissa and Bengal silks, baluchur, pochampalli, azarah, battique, tie and dye etc has become a regular feature every year. Recently exhibition exclusive for woolen Khadi was also introduced. During the Navarathri festive season, a regular dolls exhibitions and sales is emerged in the Bhavan at Annual Sales as well as at our Gramodyog Bazzar at Gopalapuram. This has become a major attraction for thousands of families visiting the exhibition during pooja every year. Besides dolls exhibition we are also arranging exhibitions exclusively for sandal woods and rose wood products, pooja articles, jeweler leather goods, teak wood furniture, herbal honey, etc. In the various areas at Chennai with a view to encourage the artisans as well as their works. These efforts of ours have received a warm welcome from the metropolitan consumers and by which had a sale up to one crore. Page 49



Apart from sales we are regularly conducting functions to commemorate our national leaders we have also built an auditorium at Gopalapuram for propagating Gandhian ideals and are utilizing the auditorium for educational functions and meetings. Wider participation is fundamental to growth and progress for any institution. Khadi Bhavan has drawn in its activities many other voluntary organizations like build of service Seva Smajam for production of vegetarian bakery products, gopalapuram women and artisans combine for production of fan fagran trust for production of readymade garments. In order to activise ghandhian studies among the students we have also started a youth for gandhian studies. The achievements of our Bhavans are not merely due to the efforts of its dedicated workers. The credit also goes to the we have and we continue to have from our valued customer, the KVIC, sister institutions producing village industries board, educational institutions as well as the publicity in India.

SWOT ANALYSIS SWOT Analysis is a comparison of strength, weakness, opportunity and threat. The central purpose is to identify the strategies that will create a firm’s specific business model that will best designs, fit or match company’s resources and capabilities to the demands of the environment in which it operates. Once they become aware of the threats and opportunities in the external environment and the strength and weakness in the internal environment of the organization at comprehensive analysis of these elements. This comprehensive analysis is known as SWOT Analysis. SWOT Analysis is such a Systematic Study and identification of those aspects and strategy that best suit the individual company’s position in a given situation. It should be based on logic and rational thinking. Khadi and village industries are also their strength, weakness, opportunities and threats. Page 50



STRENGTH Every organization has certain strong points which are known as its strength. Khadi and village industries are also has strong points. 1. Skilled Labours. The company have the service of persons having more than 20 to 27 years of experience in this field. 2. Adequate resources. The association have a dye house and Mini warp Unit, honey unit in Avinissery complex. 3. Quality raw material Good quality raw material available from central silver, Kuttur. 4. Steady Market There is a very good and steady market for the Khadi products. 5. Good maintenance system. The association have manufacturing facility of charkas and loans for repairs in Avinissery complex. 6. Flexibility There is flexibility in production volumes and product designs. 7. Quickness. There is quick decision making. 8. Efficient employer – employee relationship. There is an efficient and healthy relationship between employers and employees.

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WEAKNESS Weakness is the in capability, limitation and deficiency in resources such as technical, financial, manpower, skill, brand image and distribution pattern. These factors tend to decrease the competenues of the firm.

1. Lack of artisans The company lacks the service of adequate number of artisans. This creates difficulties in loading and unloading of materials. 2. Low wage. It creates dissatisfaction among workers and hence it reflects in productivity. 3. The charkas and looms are very old it create delays in production and affect quality. 4. Lack of fund The company lacks adequate funds further expansion. 5. Lacks of promotional activities Khadi village industries do not provide any promotional activities. 6. Some other weakness include technological obsolescence, in efficient management and marketing inability.

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OPPORTUNITIES Opportunities are entirely external to the organization and they are present in the environmental situation in which the corporation functions. An opportunity is a major favourable advantage to a company; provide the same can be availed strategically. The external environment analysis may reveal concern certain new opportunities for profit and growth. Such opportunities include. 1. 2. 3. 4. 5. 6. 7.

Skilled and experienced spinners and weavers. Growing demand of its products. Demand for readymade Khadi products of new designs and quality. Judicious purchase of materials, Out sourcing by large units. Overseas market. Expansion and Modernization of all units / high investment.

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THREATS Threats are also external to the organization. Threats are danger signals and these signals should be properly observed. For this the management should revise their strategies and tactic to meet them. Top management should have the capacity to foresee the possible threats in the short term and in the policies and prepare strategies. Threats can be effectively blocked by proper analysis and reappraisal of the existing policies and by developing strategies suitable to meet the situation.

1. Price variation As per prices of raw material changes in accordance of the season, there is a chance of less demand of the product. 2. Govt. policies. Sometimes affect the working of the industry. 3. Competition There is a high competition taking place in the field of cottage industry. Kerala Khadi and village industries complete with other cottage industry in Thrissur.

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Balance Sheet The Kerala Khadi and Village Industries Association Avinissery, Thrichur Balance Sheet as at 31-03-2010 Capital & Liabilities Capital A/C as per last B/S 15126023.39 (+) Memership Subscription 12300.00 (+) Contr for shed Const. perma- ngalam 740298.50 (+) Profit for the year 1271628.02 Differed Liabilities Working Capital & Other CE loans as per schedule-1 KVK prodip Grant K K & V I Board revitalization program Reserve as per schedule-2 Fund for repayment of CE loan Thalappilly Cotton Khadi cluster SFURTI schedule 3 KVIB Khadi grant flagship programme K.V.I.C Risc 375000.00 K.V.I.C GrantWorkshedscheme 225000.00 Current Liabilities : LIC & PF Payable as per schedule – 4 Advances, Deposits as per schedule – 5 Interest & Other payable as per schedule – 6

Rs

17150249.91

19906793.48 64750.00 373660.00 85918123.06

Properties & Assets Premises, sheds, properties(schedule-10) Furniture & Fixture as per schedule – 11 Vehicles as per schedule -12 Electrical fittings, Generator etc as per schedule - 13 Charkkas Looms, equipments, vessels etc as per schedule – 14 Deposits & Advances as per schedule – 15 SFURTI as per schedule – 16 Gratuity Insurance fund with LIC

Dues from KVIC :35370.48 Instrumentation Section Last B/S 49065.00 6689175.00 Grant 75840.21 Interest Subsidy 246514.00 787500.00 Rebate Rebate due from KK & VI 600000.00 Board 2056171.65 KK & VIB Festival allowance 370516.45 133485.40 KK & VIB Incentive 2564974.80 5286775.63 Trade Debtors as per Schedule 914741.97 – 17

Rs 58241720.38 6813226.02 1124229.29 4145199.11

11409467.70 9006793.24 1658365.30 1371800.00

371419.21 12268836.74

4991662.90

7071239.95

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Capital & Liabilities Artisans Welfare fund 34878506.84 (-) CEO, KKWWFB, TVM 20293139.96

Rs

Properties & Assets Cash at Bank as per Schedule – 18

1693436.94

14585366.88 Cash on Hand

Payable to KKWWFB, TVM Provisional Artisans & Artisan Left Service L. H. V. Loan Benefit fund artisans, staff, etc as per schedule – 7 Pension fund & Co-operative society as per schedule – 8 Trade creditors as per schedule –9 Canara Bank OCC A/C State Bank of India Closing Stock Margin Total Rs.

Rs

116981.25

1244295.06 Closing Stock as per 13341071.82 Schedule – 19 251157.87

104229922.57

1720411.44 1811260.65 28433448.30 30249713.25 126804.08 8665513.20 224014300.6 0

Total Rs

224014300.60

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FINDINGS AND SUGGESTIONS  Now the production of charkha is decreased and there is no market. The machines completely conquer the market. The fast and advanced technology really increases the demand of other products.  The production of furnitures of

Khadi and village industries in

Avinissery complex will shown on the down position.  The soap unit of the association is decreased year by year.  One default that the lack of new fresh blood is less. Generally youth are do not prefer Khadi jobs because of the less amount of salaries and incentives. They switch to other jobs.  The Khadi an village industries generally run on traditional lines.  The Khadi and village industries set a fixed price for a whole year. The changes to other industries.  Shortage of inadequate finance can be seen from the records.  Reduction of raw-materials for making oils.  The products made here are not exporting due to this they were trying to sell all the products within the country.  Many office workers are paper works. So its move slowly.

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LIMITATIONS OF THE ASSOCIATION The problems of the association will affect the KVI products. When the problems are less opportunities are more. The limitations of the association are as follows: Lack of capital is the main problem of Khadi and village industries in Avinissery complex.  Machine breakdown is another problem. When the machine is breakdown the work is not completed.  Increasing price of the Khadi product compared to another product.  The employees are not well co-ordinated.

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SUGGESTIONS  Some people do not aware about the Khadi products, so sufficient ment or publicity must be needed in between the people.  Labour is important one, in factors of production inefficient working of labours will affect the working conditions of the organizations. In this case, the soap and silver units of production and sales in association are decreased. The best solution against this, those provide good training facilities to workers and delegate good supervisors to assist them.  Proper recruitments should conduct in time, It will encourage new generated people.  The prices of the Khadi products should change according to their demand and supply.  By exporting the Khadi products the association can make huge profit. The world should bother the importance and needs of Khadi products through exporting.  Now a day all people like to be in modern trend, so they should make changes in their business from traditional line to modern.  To establish various laws to secure the safety and needs of Labours. Only through this the industry can attain all of its needs and objectives.  Many are of suggestions that KVI products are not maintaining old quality. The quality of products can be maintained by encouraging KVI units to adopt standard specifications developed by agencies like BIS, EPO, FDA, AGMARK and ISO (TQM) standardizing the product specifications as per National standards.

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CONCLUTION

Khadi and Village industries commission (KVK) have formulated margin money scheme to create more employment opportunities, in rural sector. This scheme is being implemented to promote more investment in Khadi and Village industries sector with the help of financial institutions. The objective of the scheme is to provide margin money grant to the units approved by KVK for creating more employment opportunities in Khadi and village industries sector. Individuals, co-operative society, charitable institutions, and self-help groups are eligible for the grant. Entrepreneur whose project cast is up to 10 Lakhs is eligible for grant of 25% of the loan amount is sanctioned by the commercial bank or co-operative bank or Kerala financial corporation. Entrepreneur belonging to weaker sectioned. SC / ST / OBC / Women / PH / Ex-Servicemen / Minority community are eligible for grant of 30% of the project cost. KVIC also introduced welfare programmes pension to retirement employees and bonus, fringe benefits etc. for the benefit of the employees. The Khadi and village industries have lot of problems. So ther is a need of discussion to solve the problem. Detail discussion will help to solve the problems. And also take many more new projects and innovative products to the Khadi and village industry. From this research conclude that most of the workers of “Kerala Khadi and village Industry” are satisfied with the welfare facilities provided by the organization with exception of a few facilities.

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BIBLIOGRAPHY

Books:1. “BUSINESS ENVIORNMENT” by Abdul Assis Boroth & K. Venugolapan 2. BUSINESS ENVIRONMENT – Francis Cherunilam.

Websites:www.khadiaccociation.com www.keralakhadi.org www.KVIC.org www.google.com

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