CHAPTER 4: CASE STUDY: THE BRASS MANUFACTURING ENTERPRISES OF MORADABAD

THE BRASS INDUSTRY: A HISTORICAL PERSPECTIVE

Brass is an alloy of copper and zinc, called “silly and “gully” colloquially, approximately mixed in the proportion of 2:1 along with varied proportion of other metals. Copper mining dates back to the pre-Harappa era and utensils, coins statues from this period can be traced to the 1st century BC, during the regimes of Dandadeva and Arayaverma in Ayodhya.

India is the largest brass-making country in the world, and this art has been practiced for over 5 million years. The major cluster of brass industries in India are:

a) Northern & North Eastern cluster: Moradabad, Aligarh, Hathras and Varanasi in Uttar Pradesh; Mayurbhang, Dhenkenal, Keonjhar and Sundergarh in Orissa; Jaipur and Jodhpur in Rajasthan; Jagadhari and Rewari in Haryana; Udhampur, Sambha and Bhansali in Jammu & Kashmir; Kurkhihar in Bihar; Hazo and Sarthebari in Assam; Purulia, Bankura, Birbhumi, Murshidabad in West Bengal and Delhi.. b) Southern and Western: Pembertha and Hyderabad in Andhra Pradesh; Bidar, Negamangala, Mysore and Gadag in Karnataka (Bidriwar); Swamimalai, Nachiarkoil, Madurai, Kumbakonam, Tirupur and Tanjore in Tamil Nadu; Ambarnath, Thana, Kalyan and Nasik in Maharashtra; Trichur in Kerala; Jamnagar in Gujarat and Pondicherry.

The different types of brass as per their utility and the proportion with which the metals are mixed can be identified as:

1. Yellow brass is an American term for copper and zinc mixed in the ratio of 65:35. It is used for making flashlight shells, lamp fixtures, radiator cores and tanks, fasteners, screws, springs, grill work, stencils, locks, hinges, plumbing accessories, pins, rivets, etc. 2. White brass contains more than 50 % zinc and is too brittle for general use. 3. Red brass is an American term for gunmetal, an alloy made of copper zinc and tin. It can be used for weather-stripping, conduit, sockets, fasteners, fire extinguishers, condenser and heat exchange tubing, plumbing pipes, radiator cores, etc. 4. Forging Brass contains copper, zinc and lead in the ratio of approximately 60:38:2. It has excellent hot workability and can be used for forging and pressing of all kinds. 5. Cartridge brass is 70% copper and 30% zinc brass with good cold working properties. Application of this brass is in radiator cores and tanks, flashlight shells, lamp fixtures, fasteners, screws, springs, grill work, stencils, plumbing brass goods locks, hinges, ammunition components, plumbing accessories, pins, rivets, etc. 6. High brass contains 65% copper and 35% zinc, has a high tensile strength and combines excellent machinability with moderate cold workability. It is used for

clock plates and nuts, clock and watch backs, gears, wheels and channel plates, bearing cages, book dies, hinges, hose coupling, keys, lock parts, lock tumblers, strike plates, templates, type characters, washers, and wear plates. 7. Low brass is a copper-zinc alloy containing 80 % copper and has a light golden colour, excellent ductility, cold workability and fabricating characteristics that is used for making flexible metal hoses and bellows, battery cap bellows, musical instruments, clock dials and pump lines. 8. Free cutting brass contains about 3% lead. It is fabricated by machining, roll threading and knurling and used for gears, pinions, automatic high speed screw machine parts. 9. Naval brass contains 60% copper, 39.2% zinc, 0.8% tin. It is fabricated by blanking, drawing, bending and upsetting, hot forging, pressing. It is used for construction of aircraft turnbuckle barrels, balls, bolts, marine hardware, nuts, propeller shafts, rivets, valve stems, condenser plates and welding rods. 10. Admiralty brass contains 30% zinc and 1% tin that inhibits dezincification in most environments. 11. Silicone red brass contains about 80% copper, 4% tin and the rest is made of zinc. It has excellent hot formability and is fabricated by forging. It is used for screw machine operations and in valve stems where corrosion, resistance and high strength are critical. 12. Alpha brass with less than 35% zinc, is highly malleable, can be worked cold, and is used in pressing, forging, or similar applications. They contain only one phase, with cubic crystal structure. Prince’s metal or Rupert’s metal is a type of alpha brass containing 75% copper and 25% zinc. Due to its beautiful yellow colour, it is used as an imitation for Gold. 13. Alpha-beta brass (Muntz metal), also called duplex brass, is 35-45% zinc and is suited for hot working. It contains both α and β' phase; the β'-phase is body-centered cubic and is harder and stronger than α. Alpha-beta brass is usually worked hot. 14. Beta brass, with 45-50 % zinc content is less ductile than the alpha types and generally must be worked hot or cast in order to be fabricated into useful articles. It has less corrosion resistance than alpha in-spite of having low copper content. Marine hardware, heat exchange tubing and architectural panel sheets are often made from beta brass. 15. Aluminum brass is a high corrosive resistant brass containing 2% aluminum and 78% copper and has excellent cold workability for forming and bending. Condensers, tubing plates, distiller tubing, and ferrules are often made of aluminum brass. 16. Arsenical brass contains traces of arsenic and aluminum and is used for boiler fireboxes. 17. Manganese brass is a brass most notably used in making golden dollar coins in the United States. It contains roughly 70% copper, 29% zinc and 1.3% manganese with excellent cold formability, fabricated by blanking, bending, forming, stamping, welding.

Other types of brass are common brass, tonval brass, and free-machining brass. India is the largest producer and exporter of brass and bronze in the world.

(Quantity in Tonne; Value: Rs. in ' 000)

Country 2005-06 2006-07 2007-08 2008-09

Qty. Value Qty. Value Qty. Value Qty. Value

Countries 52233 9956356 52361 13605797 39548 10407066 31967 8639392

United States of

America

9811 2031336 8484 1908178 5566 1386918 4673 1230941

Germany 1640 364042 2166 588380 2316 719577 2246 645734

United Arab Emirates 5871 1031587 3371 840186 2824 736621 2161 594775

United Kingdom 2610 643233 2661 791437 2201 648038 1717 500190

Canada - - - - 2431 383971 3060 470392

Saudi Arabia - - - - 1105 324688 1159 354108

Italy 937 208449 1724 544872 1333 397217 1268 336849

Malaysia - - - - 1012 285853 954 279564

Taiwan - - - - 2032 501432 785 202304

Hong Kong 4458 711612 4920 1401350 1978 564553 200 52835

Other Countries 16463 3408324 20789 5400900 16750 4458198 13744 3971700

Australia 1090 221295 1471 426084 1060 285398 - -

China 4187 554352 2321 532865 1713 409399 - -

Chinese Taipei 3271 473345 2878 714595 2032 501432 - -

France 1895 308781 1576 456950 949 273810 - -

Source: Indian Bureau of Mines, Govt. of India. (ON173)

TABLE 4-1: SELECTED COUNTRY-WISE EXPORTS OF BRASS AND BRONZE FROM INDIA (2005-06 TO 2007-08)

MORADABAD

Moradabad is an industrialized town in Uttar Pradesh situated on the banks of the river Ramganga, a tributary of the Ganges, at a distance of 167 km from the capital New Delhi. It lies between Latitude 28.20’ and 29.16’N and Longitude 78.4’ and 79.0’ E. Established in 1600 by Murad, the son of the Mughal Emperor Shahjahan, the city is also nicknamed as Pital Nagri, ("City of Brass") for its famous brass handicraft industry.

Items Sex Slum Urban

Total Households 11150 102477

Total Population (Including

Institutional and Houseless

Population)

Person 70945 641583

Male 37680 340314

Female 33265 301269

Population in the Age Group 0-6 Person 13876 99980

Male 7417 52537

Female 6459 47443

Scheduled Castes Population Person 20686 62247

Male 11089 33322

Female 9597 28925

Scheduled Tribes Population Person 14 183

Male 7 102

Female 7 81

Literates Person 27257 330180

Male 17083 188730

Female 10174 141450

Total Workers Person 17602 170643

Male 16060 157964

Female 1542 12679

Main Workers Person 14777 155456

Male 13742 145307

Female 1035 10149

(i) Cultivators Person 1330 3465

Male 1195 3119

Female 135 346

(ii) Agricultural Labourers Person 615 1647

Male 549 1482

Female 66 165

(iii) Household Industry Workers Person 400 9206

Male 326 8410

Female 74 796

(iv) Other Workers Person 12432 141138

Male 11672 132296

Female 760 8842

Marginal Workers Person 2825 15187

Male 2318 12657

Female 507 2530

(i) Cultivators Person 93 416

Male 54 159

Female 39 257

(ii) Agricultural Labourers Person 354 854

Male 161 588

Female 193 266

(iii) Household Industry Workers Person 115 1277

Male 61 831

Female 54 446

(iv) Other Workers Person 2263 12640

Male 2042 11079

Female 221 1561

Non-Workers Person 53343 470940

Male 21620 182350

Female 31723 288590

SOURCE: CENSUS (2001)

TABLE 4-2: DEMOGRAPHIC PROFILE OF MORADABAD

The uniqueness of Moradabad metalcraft is in the sand of the Ramganga River and used in the moulds during metal casting. The sand is so fine and soft that it is the perfect binding material for the metal casting process. It was said that many Muslim craftsmen after independence migrated to Pakistan but returned to Moradabad as their business could not flourish in Pakistan since the sand in Pakistan was not as effective in creating the moulds.

Roy (1999) writes that brassware in this town (Moradabad) is an old industry, but the pre-seventeenth-century history is undistinguished. Growth came later through a combination of brass casting, beginning initially with firearms, engraving on coins, and an attempt to reproduce a zinc hukko made in Bidar. Groups of artisan families, courtiers at Delhi, and their patrons are credited with the development of these skills here. In the eighteenth century, Moradabad traded with, and probably received engraving designs from countries like Persia, Turkey, and Egypt. The brassware industry bloomed in the early 19th century when the British took the art to the foreign markets. Within a few decades, two crucial railways intersected here, the East Indian towards Calcutta and Aligarh, and the Avadh-Tirhut with access to the hills. Other immigrating artisans from Benares, Lucknow, Agra and many other places formed the current cluster of the brassware industry in Moradabad. Moradabad wares went to 226 towns, with no single destination being dominant, spread all over the north from Karachi to Calcutta. In 1924,the town had about 8000 full-time brass workers, which grew in 1945 and 1960 to about 10,000 and in the late 1970s to 13,500.

In the 1980's various other metalwares like brass; iron, aluminum etc. were introduced to new technologies such as electroplating, lacquering, powder coating etc, which. also found its way to this industry. There is also a special industry in ornamental brassware, sometimes plated with lac or tin and then engraved. Cotton weaving and printing are the other activity that is carried on here.

The government is investing a lot of money to improve infrastructural facilities to promote the industrial activities at Moradabad with 24-hour uninterrupted power supply and the construction of a bypass road. About 450 acres of land has been acquired to develop a new industrial area for export-oriented units at the Pakbara to Dingarpur road.

Modern, attractive, and artistic brassware, jewelry and trophies made by skilled artisans are the main crafts. The brassware is exported to countries such as USA, Britain, Canada, Germany and the Middle East, and retailed at stores such as Wal-Mart. There are about 600 export units and 5000 industries in the district. Moradabad exports goods worth Rs. 2500 crore every year.

Haji Kallan was the first exporter of metalware from Moradabad in the 1950s. He began by exporting brass trays to the Arabian countries for carrying attar (perfume) bottles and

brass containers for carrying Domdom (Holy water of Mecca), on which hojib (prayers from the Holy Koran) were engraved.

Moradabad now, is one of the seven industrial corridors declared by the state government in the industrial policy of 1999-2002. Due to the increase in popularity and exports, recent years have seen the mushrooming of export units. The Brass industry has developed as a small scale industry in Moradabad and workers have small workshops in their homes. The center of this industry is in Sambhal, a tehsil of Moradabad district. Attractive goods generated by this small scale industry are in great demand in many countries. There are about 1500 families involved in the production of these items, which provides jobs to around 5000 people.

No. of Running Factories Registered under the

Industrial Act 1948 (2007-08)

495

Small Scale Industries (2010-11) 7137

Workers (2010-11) 36915

SOURCE: ZILA SANKHAKIYA PATRIKA

TABLE 4-3: SOME OF THE INDUSTRIAL STATISTICS OF MORADABAD

METHOD OF PRODUCTION:

The metals are mixed in a big pot called "GHARIA" and heated in a furnace. The molten mix is then poured into a mould of the desired shape & allowed to cool. First & foremost, the design of the utensil to be made, is sketched on a piece of a paper, followed by a wooden frame, which is later on used to make the metal prototype. Molten metal is then poured into these moulds; and after cooling, the utensils are then taken out for repair and refurbished with utmost care. These brass utensils are then polished. If needed, exotic designs are etched on these polished utensils according to customer specifications. These utensils are then ready to be sold in the domestic market or are exported to various countries. The expert artisans who prepare moulds for different brass utensils are known as DHALIYAS.

The manufacturing process has three parts: Melting, Casting and Polishing.

Copper is melted at 900-940°C and then mixed with zinc and other metals. Metal handicraft items are made from sand based metal casting process. A mould cavity is made with the sand mixture and molten liquid is poured in it. It is then allowed to cool and solidify, and then separated from the mould. The use of sand mixture in sand casting is known as “binder”. The impression of the pattern to be etched is taken over the binding metal or alloy. The binder is made using Ramganga sand (80o% to 95%), black clay (2% to 4%), mustard oil (5%) and molasses (2% to 10%). Sand is used as a refractive material in the sand moulding system. Molasses is used as the binding material.

The flask used for the casting is made of steel, aluminium or wood and are of different sizes and shapes and slightly bigger in size than the pattern. It generally has two parts, the cope (upper part) and the drag (lower part). In casting, a sprue is the passage through which the molten metal alloy is introduced into the mould cavity. The uniqueness of the flask used in

Moradabad is its side sprue. The mould is known as pattern as it carries the replica of what is to be made by casting.

The pattern designing is done using computer based designing software like Computer-Aided Design (CAD). A slightly over-sized master pattern is made of wood, wax, metal, plastic or other material. Both the Computer Aided Machine (CAM) manufacturing and the manual manufacturing of pattern are common in Moradabad. From the master pattern, multiple patterns are made. The Moradabad metal industry generally uses wooden patterns. The pattern needs to incorporate suitable allowances for shrinkage which is known as contraction allowances. The exact value of contraction allowance depends on the alloy being cast.

In the sand casting procedure, the mould is first placed on a board. Sand binder material is sifted over the pattern until the mould is covered by a few inches of sand. The outer circumference of the same is covered by a round metal ring. Then, it is reversed and put into the moulding box (cope) and covered with the binder sand and pressed. This process creates an impression on the binder material filled in the mould. This process completes the upper portion of the sand mould. Similarly the lower mould (drag) is prepared by making the impression on the sand binder material. The upper half of the mould (cope) is placed over the lower half of the mould (drag). Both carry their respective mould impressions on the sand binder material. The bowl like opening known as sprue, is the inlet for the molten metal to be poured inside the mould and to fill-up the space (cavity) created by the mould impression. The metal from which the desired sand casted item is to be made is melted and poured in the mould box through the sprue. The mould box is left in the open to cool down and provide time for the molten metal to solidify and take the desired shape. After cooling, the mould box is opened and the binding material is removed to secure the item prepared by the sand casting technique.

Granules appear on the surface of the casted items and the surface too is rough. This surface is finished by scratching the surface with a chiseling tool which has a flat steel blade and a cutting edge. In the chiseling process the upper crust of the surface is peeled-off and unwanted material is removed. This makes the surface of the item smooth and bright. The turning machine and chiseling tool are also used for making curves and threading in the items to achieve the desired texture in the surface of these items.

The Grinding or Buffing machine is used to polish the surface of the finished goods. The items which do not require colouring are sent directly for silica polishing or else are first coloured. Different techniques are used for colouring. First and the foremost, there are items on which some kind of carving (especially hand carving) has been done. After the carving, the carved portion of the item is coloured. For colouring, it is dipped into a container filled with hot colour for some time. This process provides colours the surface of the dipped items and then the heating process is applied to the items to fix the colour. The process of powder coating is also in practice as also the use of the electroplating technique for colouring the items. Electroplating is a process of using electrical current to reduce captions of a desired material from a solution and coat a conductive object with a thin layer of material, such as a metal. Electroplating is primarily used for depositing a layer of material on an object. The process used in electroplating is called electro-deposition. The part to be plated is the cathode of the circuit. The anode is made of the metal that is used

for plating on the part. Both components are immersed in the electrolyte containing one or more dissolved metal salts that provide ions that permit the flow of electricity. A rectifier supplies a direct current to the anode oxidizing the metal molecules that comprise it and allowing them to dissolve in the solution. At the cathode, the dissolved metal ions in the electrolyte solution are reduced at the interface between the solution and the cathode such that they plate out onto the cathode. The rate at which the anode is dissolved is equal to the rate at which the cathode is plated, vis-à-vis the current flowing through the circuit. In this manner, the ions in the electrolyte bath are continuously replenished by the anode. Nickel, Copper or aluminium are used for electroplating. Antique finish metal handicrafts are also made depending on customer request by painting and plating.

Unique items like brass made light lamp covers for ships are made in Moradabad purely due to excellent craftsmanship and superb knowledge of the metal craft. The finished goods are then packaged. The master craftsmen transfer the knowledge and skills to the new artisans. There is no formal training involved in the process.

From the knowledge management perspective, we examined the Family business in three stages:

1. Start up phase 2. Consolidation phase 3. Growth and Succession phase

Our focus was to examine the case of sustainability evolving through transition and selected six prominent families in the cluster for further detailed investigation. The enclosed table shows the development of the case study in each phase and across each generation. The turnover of these businesses is evidence that they have been profitable and have sustained themselves.

Start up phase Consolidation

phase

Growth

phase

Started Turnover Members

interviewed

Case 1 Lalit

Chaudhary

(Father)

Puneet

Chaudhary (Son)

Deepak

Chaudhary

(Grandson)

1972 7-9 crores 3

Case 2 Somanth

Gandhi (Father

still active)

Joginder Gandhi Brother SJ

Gandhi

1968 4-6 crores 3

Case 3 Late Shri Wazir

Chand

(Grandfather)

Lall S Dhall

(Father)

N S Dhall

(Son)

1967 15-17

crores

4

Case 4 Kamal Munjai

Surinder

Munjai (Uncle)

Saket Munjai

Prafull Munjai

Prateek

Munjai

1980 8-9 crores 5

Case 5 Muskul Hussain

(Late)

Mobeen Hussain Son (too

young)

1972 4-5 crores 2

17

TABLE 4-4: MORADABAD FAMILY CLUSTER STUDY

KNOWLEDGE IN SUSTAINING THE BUSINESS

In the above three phases, based on the various submissions by the family members and the artisans, the following could be viewed as significant reflections:

START UP PHASE

This industry has been in existence since the early 1900s and hence is difficult to be looked at from a start up phase for the overall business. The first stage of the business was perhaps evolved from an experimentation of various metal formations at a small scale level where metal making was a family art and occupation. In terms of initiation of the new generation into the business as part of this start up, folklores are more often used as a medium of communication for development of the knowledge base. There is also an attempt at storytelling by the parents or older generation even though they are directly linked to the business.

Sand quality for the mould was an attraction for the business to sustain in the city of Moradabad and this story has been doing the rounds as to how post partition people migrated to Pakistan from Moradabad and wanted to continue the business but could not due to the poor quality of the sand and had to resettle in Moradabad. “The quality of the finished products took a beating and hence there was reverse migration as the families did not want to give up their family business. This was the view of the founders of Eden Export, whose 2nd generation. is involved in the business and who have acquired this dimension of knowledge from their owner managers. They also take steps to ensure that the supply of this quality of sand is never disturbed because their families want their family business to grow in strength. This is the knowledge acquired, retained and transferred to the 2nd generation from the first generation by the process of knowledge transfer. They will also transfer this knowledge to the next generation to sustain their business and ensure the pride of Moradabad.

“Being part of the Moradabad cluster, when we thought of starting a business, brass manufacturing was the first thing which came in our mind and the rest was learned from the market”… Kapoor International, 1st generation, partner. Hence it was naturally instinctive for the next generation to sustain a profitable business.

“My father was into the utensils business in Pakistan. He often had to visit Moradabad for business. After he decided to come to India, he started this business and then we got settled here”… Uday Chand Export, 2nd generation. The failure in Pakistan brought him back to India to sustain his family business.

At this stage, it is of paramount importance that the incumbent capitalize on their social capital, try to learn the nitty-gritty of the business from the experts on the field, who have been doing this business for several generations. The reciprocal trust having been part of some social capital plays a significant role in the sharing of knowledge.

“At the time of the start of business, there was need of conducting research on what would be selected as “our” product. We visited the Moradabad market and just interacted with the manufacturers. It was very obvious that since we were new people they were not ready to

help us initially. Our personal contacts came to our rescue often like he [the partner] was a very good cricket player… we used these contacts and some contacts from my parental business. A couple of them showed an interest in us. They started sharing sample designs and product knowledge with us. Thus we arrived”, Kapoor International, 1st generation, partner.

“My father was well known in Moradabad for the social service he used to do. So, when he started this business, the goodwill he enjoyed was critical to our success. My association with the top politicians of the State, some of the religious gurus also helped me to enjoy the status of respect amongst my competitors.” Eden Export, 2nd generation.

The risk taking ability, understanding of the socio-economic environment, knowledge of success stories associated with the business, are the intrinsic motivating factors for individuals doing a particular business and critical thinking helps in the sustainability of the business at this juncture.

“So, when at each stage we used to get stuck, such as in the finishing process, we didn’t now know how it was done, but we had the passion and the madness to learn new things so we kept going. Accordingly we got similar kind of people also…. We found people who could do a particular kind of finishing, so we achieved that, and then lacquer was also learnt. Another challenge was to do a leak proof hand welding. …We did some experiments and succeeded. That was one of the main milestones in our business. We finally made our first shipment successfully with a very good customer. That order was worth twenty thousand dollars.

“We could crack a small order of 1.5 lac containers from a customer from Singapore, though we didn’t have good infrastructure. We had to complete the order in 30 days; it was very less time, but we didn’t want to lose that work, so we worked day and night. Now when I look back, I feel the kind of decisions you take makes a lot of difference in your progress. I have always kept in mind what was told by my father when I started the business- ‘more risk more gain’.”

Sometimes we feel that entrepreneur education would give us the confidence to proceed in the business in a more organized manner using the latest technology and will ensure that costs come down.

“After his post-graduation, he [partner] wanted to do service [civil services under the Union Public Service Commission] and I too had completed .M.Com…. We used telephone directories to get customer information. Other sources of customer details were collected through internet search, and personal contacts. We started promoting our business through snail mails describing the items we manufacture. At that time though the product categories were very few, when the customer replied and showed interest we had to show them that we have big collection…. So we used to send them the photographs of the items and take the orders and specifications. So, instead of investing money in samples we use to click pictures and send them. It was very economical for us. Then we started collecting pictures and started making catalogues and albums of pictures.” Kapoor International, 1st generation, partner.

Parents may not be directly involved in the business, but they can play a significant role by being the role model, displaying leadership quality, showing trust on the entrepreneur and encouraging the entrepreneur to take risks of venturing into a new business. He can also transfer tacit knowledge of business acumen and skill.

“Like all parents, our fathers wanted us to do something different and something better on our own, that which motivated us. Our inspiration originated from that place. My father was in the domestic business so he wanted me to expand the customer base, and to internationalize it…. Lucky to have such encouraging parents .… I am the only son of my father, ideally I should have joined his business. But since childhood there was something or some words which became the driving force for me. Once I heard my father telling my mother that money is not the issue ‘even if he does not do anything in life (I was average in my studies) I have earned enough to sustain him. I just desire that he stands on his own feet’. Since then, I wanted to do something of my own. After completing my studies … I told my father that I will work in his business for a short time and then I will open something of mine own. My father agreed and told me that in Moradabad many people are into the export business, he wished that I could also do the same.” Kapoor International, 1st generation, partner.

In the manufacturing industry, in the initial learning phase there are several instances when the business calls are actually not converted into business and orders. But every experience adds to the knowledge.

“There was one more customer who didn’t give an order but he encouraged us to design various products. We worked for him for about 2 years, he used to send us pictures and we would manufacture items worth almost 1-1.5 lac INR. Family was a great support then. We did a lot of sampling, we learned what was involved in the manufacturing process, and how the moulds of wood, wax, were made; what is casting and how it is done. We actually experienced “learning by doing.”

POINTS EMERGING FROM THE ABOVE

• That Family and Family business were two parts of the process. • That the Family business can be taken through several generations. • Family businesses are resilient and can bounce back strongly if the family is together.

CONSOLIDATION PHASE

For business consolidation, the manufacturers agreed that for sustainability of the business in the long run, focus on quality should be the priority.

“We have maintained a stand that whatever we have offered as a product, we will not give below the committed quality and if possible give them better, so we were prepared that if any quality check is done, no mistakes should be found in our products”

Mohammad Yaar Khan, a merchant manufacturer of Moradabad in the UP, introduced standardization and quality control in the engraved brassware export trade (Chaturvedi, 1950); Kailer, (1990)) found that attitude towards training was determined by several

factors, including the innovativeness of the firm, the specificity of vision and length of the planning horizon, the profile and qualification of the employees, and the age of the employer and his own past experience with education. In the industrial belt of Moradabad there is little scope of formal training available for the artisan. The Lucknow School of Arts and Crafts, started in 1911, was the only institution with a course in metal-ware designs and recently a training centre for brassware designing was also introduced. With high competition, and technology advancement, the sustainability of the industry largely depends on the adaptability to new customer demands.

“Every day we would go to Delhi looking for buyers who were in search of vendors. We would catch the train early in the morning and return late at night. It was a test of both our persuasive skills and perseverance. No one will come and give you work at home. It was all self training. There were no formal training institute’s which could teach us basics of the business. Intellect and education were our only support. Frequent visits to the buying agencies bagged us some work, which were given either to test our capability, or to just avoid us. Sample designs were given to us, which we were required to replicate. Every night at 8 pm, we planned and started work at 5 am the next morning. One of us would sit with the artisan and get the sample prepared and once it was ready one of us would go deliver the product to the buying agents. This went on for almost 6 months. So we started with this kind of work in Oct – Nov 1998, in April 1999 we cracked our first order from a major customer (18-20 thousand dollar)”.

One strategy adapted by the industry was large scale production (Roy, 1996). “High Design, Deltaman & Sons, Uplabh Metals etc., want orders with higher quantities like 50k and 1 lac but on a very low margin. In this kind of work if you can do very good calculation, then you can make your money. If you are also very good in your administration then you can make your money.”

Our research also substantiates findings of Roy (1996) that most dynamic units in Moradabad town are those between the smallest (three to five workers) and the large factories. Such units face higher mortality, but they were also more adaptable to sudden changes in demand than the larger factories. As manufacturers point out:

“Businesses that began in 1998-2000 have survived and are still doing well. In the last ten years not even 10 new units have come up. There is a lot of struggle in this business.”

“Success strategy differs from enterprise to enterprise. If someone outsources most of the work he can do a turnover of 50 crores, but those who are doing the work in-house for a very small increase in turnover, have to bring in a lot of changes in the business.”

“Most successful businesses were those which had turnover of less than 10 crores; business worth more than 100 crores had suffered losses. Businesses in between did not follow any specific trend”.

According to the Census data, the number of employees in the brass industry increased from about 125,000 in 1891 to 145,000 in 1901, then declined in 1921 to 106,000, was 120,000 in I931, and thereafter, in the next three decades it remained stationary at a little over a hundred thousand.

Roy (1996) contributed it to following reasons: (a) productivity improved in the industry via use of new technologies and work-processes, and (b) the very growth of trade created new constraints for the artisans. In our study, we have found that technology has improved the quality of work and also the scale of operation. Due to the loyalty of the employees they have been retained.

“In this industry semi automation has been introduced. For powder coating, earlier we used to do the coating manually and used to put pieces in the oven manually. Conveyer belts and large size ovens are the new additions in most manufacturing units. Loyalty is given its due weightage in the deployment of labourers. Over the years it is not that the productivity has improved. They are with us because our thinking matches with each other. They understand us and we understand them”.

“New technology comes with a newer set of workers and the old ones learn the new technology. Old ones are not replaced. There is no threat to them that they will be replaced”.

Since Moradabad has created a brand value, they are approached by technologists and customers, who introduce them to new technology, products, designs and processes.

“Our sources of knowledge are the engineers and company representatives who approach us with new knowledge. We learn from them what is new in the industry and what others are doing. Even our customers tell us that other exporters have the upper hand on you because of this technology, so we get the new technology”.

Market-information improved sufficiently for the consumers to discriminate before buying and the customers have become more vigilant. Roy (1996) points out that 'Karkhana', workshops of the manufacturers have long been (a) a shed containing the most capital-intensive processes (furnace), (b) a shed containing the most labour-intensive processes (moulding), (c) a shed for the merchant owner for inputs/storage of products, and (d) a unit subcontracting work contracted by merchants. Customers want that labour laws, like minimum wages, leave and welfare benefits as per the factory regulations are followed by the manufacturers. Customers also check the background of the exporters to find their commitment to their work. It is of significant importance to the manufacturers.

“Plight of the labourers in the firms was reported. Middlemen were making money at the cost of the labourers. So this brought about a general awareness amongst their society and it pressurized the retailers and wholesalers and the exporters to improve the working conditions. Today if one wants to work with US clients, the first thing they ask is are you ‘socially compliant”? If you say yes, they will ask to spell out the areas. Social compliance also means that one has the infrastructure. And infrastructure means that you have a running business with respectable turnover. So by asking one question they get answers to three questions.” “The buyers have become so demanding that the risk of a container getting rejected is very high.”

“This business is based on commitment. Once your reputation is ruined you will not be able to work further. Some people do this, and they feel how long I can fool the customer. Some people make false commitments but then they cannot survive long.” The choice of

alternatives when you have several alternatives available is very important for business sustainability.

“Nirmal [partner] and I got an opportunity to travel to the US as Rotaract members, but at the same time we got a business enquiry to visit Singapore. We chose to go to Singapore. We didn’t have much money but somehow managed to buy tickets for Singapore. We took money on credit from one of our relatives for the trip. We could manage in Singapore with only 50 dollars (Rs. 2500) and saved the rest. The good thing is that we could bag the project, and continued with the customer for next two years.”

In the brass industry of Moradabad, the business begins at home in small sheds, and then as the business grows there is gradual need of expansion of the infrastructure.

“We started our operation from my residence, then after marriage moved my office to one of the rooms in an old ancestral property that was in the heart of the city. We were there for three years. After the Singapore project, we did not have many orders in hand. So we realized that the place where we were sitting was not the right place. So in early 1998, immediately after coming from Singapore we hired one hall with rent of Rs. 50,000/- per month. This we had done without any regular income flow.”

Familial support is very important during the business consolidation stage.

“We were not giving any money at home at the time. Our families were managed by our parents. Only Arvind [partner] was married at that time. I was unmarried. But there was no regular income. It was the learning phase. Because we were not giving any money at home we used to plough back money in the business. We were not concerned that there is no food at home, “business first” was the objective. Though it looks like a very simple thing but without our family support we would not have been able to do this business”.

POINTS EMERGING FROM THE ABOVE

• That technology absorption is well accepted, and is critical. • That death of the entrepreneur is a blow to the knowledge process but the employees do make the Family Business successful. • Most of the time, knowledge transfer is tacit with minimal documentation. • Networking and knowledge transfer through networking is an important element of Family Business development.

GROWTH AND SUCCESSION PHASE

Most critical aspect of knowledge transfer is the business succession stage in family run small businesses. Case-to-case differences were observed in knowledge transfer in the third generation. This generally depended on the inter-generational relationship, sibling relationship, owner’s attitude and how the business was transferred.

Lalit K Behl, 71 years, of Uday Chand Export was only six years old when his father (who initiated the business) passed away. He missed the hand-holding of his father in the business. He began going to the firm regularly along with his older brother from the age of twelve. Though his brother did clear his doubts whenever he asked for help, he still felt that he could have learned more business tricks from his father, whom he missed. Joining the

business was not his first choice. “I wanted to pursue my career in medicine, but could not clear the pre-medical exam.”

Though joining the business was not out of choice, he was highly motivated and tried to acquire knowledge through externalization. He had completed his graduation and gained knowledge by interacting with foreign customers and competitors during the trade fairs and meetings with export houses.

“I was first one from the family to have gone abroad. Later on I took my family abroad to introduce my family to the foreign markets”

But he had proper succession planning for the children. All his three sons are doing this business after completing their graduation. He looks after the financial matters of the business, whereas the sons look after production and marketing of the products.

Sukhvir of Deltaman & Sons, 43 years, is a 2nd generation businessman. He joined the business at a very early age of 18 years after completing his high school. There was a large communication gap with his father, “we were not allowed to speak to our fathers in our younger days”. Having joined the business at a very young age, Sukhvir learned the details of the business, by observing his father handling the business.

“I have seen my father suffering a huge cash crunch in the initial years. What I have learned from the business is that ‘you must give people their money when it is due”

The basic strategy followed by Sukhvir’s father, Alokenath Gautam for succession has been gradual disassociation from the business. “My brother and I take business decisions by arriving at a consensus. My father does not take part in every day decision making. We, both [me and my brother] look after production, finance and marketing”,

The firm offers exquisite products ranging from classic stainless steel bowls to brass pots and vases of different shapes. They are one of the biggest exporters of fire pits in India. Apart from this, they also manufacture Garden Accessories, Metal Table Wares, and Christmas decoration items.. Their total people strength is around 1000 during the peak season (July to august). This includes the sales and marketing team, HR department, artisans, skilled, unskilled workers and admin staff.

“My father, Alokenath Gautam, is excellent at people handling. At 70 years he still looks after employee welfare. We are one of the few firms in this region to have invested in employee training in the non-usage of liquor, paan and tobacco on the shop floor. We have always trained employees on the statutory laws relating to Provident Fund, Gratuity etc”.

The basic business strategy of Deltaman & Sons is high volume and low margin. So to sustain the business they understand machinery and technology which are imported from China. But, the beauty of hand moulded articles created by the artisans lose their glory. Moreover, they realized that the artisans would need to be trained to operate the new machineries.

Sukhvir and his brother were not keen on their children joining the same business. “Both my and Dharamvir’s [brother] daughters are studying fashion designing. We would want them to start their own venture in fashion apparels”

Infact, similar views were expressed by the first generation entrepreneur, Arvind Kumar of Kapoor International while speaking about the industry in general.

“In the last 12-15 years, people want their kids to get an education and most of the people have tried to send their kids for higher education. Castingwala wants his kids to become a supplier and supplier’s kid wants to become exporters.”

Many exporters are turning to diversifying the business into manufacturing fashion accessories as it considered as a safe business in times of economic and political instability.

“Moradabad manufactures fashion products. During times of economic recession, lower and middle income groups are the ones who are affected. Our major customer is the European market. They also have an up-market store in US. They were not affected by recession because of this up market store. Secondly they do not buy goods in bulk. He never gives bulk orders. He is a very conservative buyer and gives an order for 2400 pieces or 3600 pieces. And being a fashion oriented store, the designs are exclusive, are bought by other importers, wholesalers, retailers. So he was generally never affected by the recession, hence we were also not affected by the recession as well.”

It was observed that the successor’s level of formal education, whether joining the business was a conscious decision, i.e., their opinion was taken into consideration while pushing them into the business, would determine their intrinsic motivation and involvement in the business, perceived sustainability of the business and succession planning.

Mubeen Khan, 50 years, of Khan Metal Export was pushed into the business at the age of sixteen. With more than thirty years in the business, whatever he learned was through on-the-job training under his father’s guidance. He feels that his father should have given him an opportunity to choose his career. Though he wants to see the business expand with minimum investment, he does not see a future for his son in the business, and would be happy if he does something else for his career.

On the other hand the Mehtas of Synergy businesses are the second generation in the business. It was begun by three paternal cousins in 2000. The second generation, sons of the three cousins, in their late twenties, have joined the business recently after completion of their graduation. They are highly motivated and gaining knowledge about the business from their parents, by participating in trade fairs in Delhi and Bangalore and through designs available on the internet.

Trade fair is an essential source of knowledge for this industry. Maskell et al (2004), Bathelt and Schuldt (2008) describe trade fairs as temporary clusters through which information and knowledge buzz take place informally through face-to-face communication. It provides an opportunity for interaction between the traders, firm owners, engineers and designers. It also provides manufacturers the feel of ethnic design preferences of different cultures: colours, prototypes, combination of metal alloys for various requirements. Most of these exporters have their distinct websites. The trade fair also helps in direct marketing of their websites.

POINTS EMERGING FROM THE ABOVE

• That availability of knowledge sustained the business • That non-availability of Father/first level entrepreneur and his mentoring delayed the process of the Family Business development. • That motivation and consent to be in the Family Business was critical for the sustainability of the business

CONCLUSION

Entrepreneurship especially in a manufacturing set up was not an easy concept in the pre 1991 eras. There were several impediments to cross in the license raj system. The competitiveness of post 1991 era posed different challenges.

This study gave us the following learning:

1. Knowledge was critical to sustain the business. (one business man came back to India from Pakistan because the sand quality in Moradabad was better. He is settled and doing well currently. 2. Networking support knowledge development. The death of the father in one business allowed him to secure knowledge from others through networking and sustain himself. 3. Most of the studies were around the 2nd generation of the business families with the 3rd generation watching from the sidelines. In some cases the 1st generation was also present. 4. Ability to impact one’s personal environment with a high degree of self confidence was evident. 5. There was not much effort on R&D and there are strong past business process orientation.