Chitrika 10 Yr Perspective Plan

Chitrika – Artisan Development Foundation

Perspective Plan (Yr 2010 – 2020)

Perspective Plan 2010 -20 2010

Chitrika - ADF Page 2

TABLE OF CONTENTS Executive Summary of ProposalA. Introduction................................................................................................. 4

A. Introduction ................................................................................................................................................. 6

A1 - Artisan Sector in India ............................................................................................................................ 6

A2 - Artisan Sector in Andhra Pradesh ........................................................................................................... 7

B. About Chitrika .............................................................................................................................................. 8

B1 – Chitrika’s Objectives .............................................................................................................................. 8

B2. Strategies and Approach ........................................................................................................................ 9

B3 - Performance of Chitrika (Yr Aug 2005 – Mar 2010) ................................................................................. 9

C. Goal (Yr 2010 to Yr 2020) – ......................................................................................................................... 12

D. Objectives (Yr 2010 to Yr 2020) - ................................................................................................................ 12

E. Operational Area – (Change the map with new clusters) - ........................................................................... 13

F. Artisan Development Institutional Model - .................................................................................................. 14

G. Program Innovations .................................................................................................................................. 16

H. Program Components – .............................................................................................................................. 17

H1. Development of Self-Managed and Self Sufficient Artisan Collectives ................................................... 18

H1a. Developing Cooperatives ................................................................................................................ 18

H1b. Developing Chambers of Artisan Enterprises - Association............................................................... 19

H1c. Conversion of Traditional Cooperatives ........................................................................................... 19

H1d. Developing Artisan Marketing Company ......................................................................................... 20

H1e. Develop Collaborations with Government Schemes ........................................................................ 20

H2. Linking Collectives to Vectors................................................................................................................ 21

H2a. Developing Viable Value Addition Units ........................................................................................... 22

H2b. Market Development ...................................................................................................................... 22

H2c. Financial Resources – Artisan Bank .................................................................................................. 23



H2d. Technology Up gradation and LABs ................................................................................................. 23

H2e. Artisan Design School...................................................................................................................... 24

H2f. Production Management ................................................................................................................. 24

H3 – Educating Value Chain Actors .............................................................................................................. 25

H4 - Greening Artisan Value Chain Process .................................................................................................. 30

I – Human Resources at Chitrika ..................................................................................................................... 31

J - Financial Resources at Chitrika ................................................................................................................... 33

J1 – Program Costs of Chitrika (10 Year Plan) .............................................................................................. 33

J2 - Program Support Costs for Chitrika ....................................................................................................... 33

J21 – Human Resource Costs of Chitrika .................................................................................................. 34

J22 – Institutional Processes & Establishment Costs of Chitrika................................................................ 34

J3 – Overall Financial Requirement for 10 Years .......................................................................................... 35

J4 - Sources of Grant Finances for 10 Years ................................................................................................. 36

Annexure 1 - Board of Directors ...................................................................................................................... 37

Annexure 2 – Consultancies & Studies of Chitrika ........................................................................................... 38

Annexure 3 – Donor Organizations Supporting Chitrika ................................................................................... 40

Annexure 4 - Performance of Artisan Institutions Promoted by Chitrika .......................................................... 41

I. Sri Umachandra Sekhara MACS (SUCCS) (Origin : November 2006) ....................................................... 41

II. Sri Nava Durga MACS (Origin: August 2008) ......................................................................................... 42

III. Etikoppaka MACS (Origin: October 2008)............................................................................................ 43

Annexure 5 - Difference Made by Chitrika in the cooperatives ........................................................................ 45



EXECUTIVE SUMMARY OF THE PLAN

Name of the organization: Chitrika Location: Andhra Pradesh

Sector: Crafts Proposal: Working with 10,000 artisans in five crafts

Duration: 2010-2020 Outlay: Grant: Rs.15.35 Crores

Chitrika is an artisan development foundation working in Andhra Pradesh since October 2005. The Perspective Plan of Chitrika has been prepared on a larger canvas to multiply the positive effects of the model that it has been working on in the last 4 years. Crafts sector requires adequate dose of investment in its infrastructure, processes as well as building human capacity to interact with the market. Particularly in artisan livelihoods balancing markets, aesthetics and producer concerns is a key challenge. The proposal presents a well-integrated plan for improving the income and human capital in the crafts sector as that is what will sustain and help in scaling-up the interventions for the artisans.

The programme aims to work across the value-chain and strengthen the market, production and institutional base of the crafts sector in Andhra Pradesh. The programme aims to reach out to 10,000 artisans across AP and support them to set-up and manage their own institutions. In Andhra Pradesh, with more than 8 lakh artisans, there is a need to integrate learnings from experiments in different crafts and states.

The programme has been divided into the following components – Develop Self-Managed and Self Sufficient Artisans Collectives, Linking Collectives to Vectors, Educating Value Chain Actors and Greening Artisan Value Chain Processes. Working on creating artisan institutions that are networked with value-addition locally with marketing function handled by federations will not only increase the realization to the artisans but will also reduce the cost of production. In the next 10 years Chitrika’s primary focus shall remain on development of artisan collectives. Chitrika will develop artisan collectives through various program activities – developing cooperatives, developing chambers of artisan enterprises, conversion of traditional cooperatives, developing artisan marketing company and developing collaborations with government schemes. All these will form networks across districts and state.

Each of the components has been further divided into sub-components and detailed plans have been presented. The key innovations in the programme lie in developing local economic clusters, developing the capacities of artisans to manage business and offering integrated services to the artisan institutions. The plan proposes to cover 11 key artisan clusters in Andhra Pradesh including weaving, lacware, pottery, powerloom and one craft in urban area. The plan requires grant funding of Rs. 20.06 crores and loan funding of Rs. 71 crores. Per artisan one time cost of building the capacity, collectivisation, advocacy and business development is coming to be Rs. 15,000 per artisan.

Though Chitrika is a young organization and experimenting with a model of integrated collective for the handloom artisans, it has the potential to scale-up its learning and improve returns for the artisans as well as show better cost-benefit ratio for its services. With a professional team and well-



functioning cooperatives, there is need to scale-up this intervention, which aims to work at the artisan, collective, and sub-sector level all at once.



A. INTRODUCTION

A1 - ARTISAN SECTOR IN INDIA

The rich and diverse cultural heritage of India finds expression in both tangible - handicrafts, art forms and literature; and intangible forms- festivals and traditions. They have been a source of pride for the country and in the current era of expanding global trade, artisan products have become an attractive business segment for their ethnic trademark. The handcrafted product market (including the handlooms) has emerged as a major market both nationally and internationally. The handcrafted market has been growing at the rate of 12% in the past few years. Apart from the traditional handcrafted products, in the past two decades, combination of contemporary touch in design, colours and materials have come to demand a premium price within the handcrafted product market.

Transitioning traditional livelihoods and their role from being fulfilling the basic needs to becoming a

marketable commodity have pushed some of the livelihoods to extinction. Aspirations and perspectives

regarding the craft-based livelihoods too have undergone a sea change. With some crafts becoming extinct to

others becoming the preserve of rich, these livelihoods need to be seen from the perspective of the

producer/maker who is directly affected by such transitions. With expanding market, controlling the value-

chain is physically impossible. This gives rise to middlemen controlled chain and in the process pushing up the

cost of distribution and marketing.

Definition of crafts has to be changed with shift in the way products are made nowadays. Though the common

definition of manual labour, tradition and beauty are the attributes attached with crafts, many activities in the

production are becoming semi-mechanized to reduce the cost, increase productivity and lack of resources for

following elaborate traditional processes. The moot point is whether the sector is ready to broaden the

definition of the crafts in the modern context.

Handicraft Sector in India

# Head Numbers

1 Number of Craft persons in India 8.4 million

2 Women 14%

3 Rural dwellers 50%

4 GDP $ 2.5 billion

5 Industrial Employment 20%

6 Size of the export Market $ 2.0 billion

7 Size of domestic market $ 4.0 billion

8 Major states North-east, Uttar Pradesh, Rajasthan, J & K

Source - Handmade in India, 1994-95



A2 - ARTISAN SECTOR IN ANDHRA PRADESH

In Andhra Pradesh, weaving is the largest craft sub-sector. Data, institutions and schemes of government are

more comprehensively designed for the weavers. Data is not available for other crafts. APCO – federation of

handloom primary cooperatives and Lepakshi – marketing arm for handicrafts are the two key institutions

working on marketing of the crafts. The traditional route of master craftsperson as a key design, marketing and

finance channel exists even to this day. The issues plaguing the sector are similar across all the crafts but vary

in degrees. The market for most of the handicrafts in AP is export oriented and has good margins. In the case

of handlooms, the market is declining for some of the clusters.

Crafts Sector in Andhra Pradesh is well entrenched in rural areas. Each district in Andhra Pradesh boasts of

some form of craft. Also if one looks at the variety of handlooms and handicrafts, AP offers rich diversity. The

famous crafts of Andhra Pradesh can be divided in the following broad categories: Metal, wood, leather, stone

and cloth-based crafts. The key figures related to AP craft sector are presented below:

Key Figures in Crafts Sector

# Head Figure

1 Number of looms/Weavers 8 lakhs

2 Number of handicraft artisans (1995-96) 1.2 Lakhs

3 Key Districts All across Andhra Pradesh

4 Estimated Production Handlooms: Rs. 1500 million

Handicrafts: Not available

5 Key Organizations APCO, Lepakshi, Dastkar Andhra, CHIP

Past interventions in Crafts sector were able to contribute in a limited way for the growth of the sector. The

interventions were not so successful because of the following reasons-

a. Lack on integrated services covering the entire value-chain,

b. Lack of registered institutional structures managed by producers,

c. Control of market by intermediaries,

d. Lack of market information on changing consumer needs,

e. Lack of concerted efforts to work on improvements in technology and

f. Inadequate financial flows (supporting long term investment and working capital needs) into

the sector.

Though there is infrastructure, relevant schemes and existing best practices in marketing by private sector,

there is a systemic failure in improving crafts livelihoods. Particularly in artisan livelihoods balancing markets,

aesthetics and producer concerns is a key challenge. Both modern replacements and traditional articles coexist

and compete in the market. Does saying no to modern replacements means saying no to natural technological

progression? Are we protecting the dated techniques? Or is it only the issue of correcting the market

structures? The main challenges in the crafts sector are:

1. Making crafts viable at producer’s level so that it meets the growing aspirations.



2. Developing value-addition units to support improvement in realization of the producer and to control

costs of end products.

3. Integrating complementary technologies to improve productivity and working conditions.

4. Integrating market information systems so that the producer is aware of changing market and consumer

needs.

5. Developing viable institutional structures addressing the issues of distributive justice in favour of artisans

and making them the key player in the value-chain

B. ABOUT CHITRIKA

Chitrika is an artisan development foundation working in Andhra Pradesh. The organization was founded to

support artisans in improving their realization, reducing drudgery and increasing productivity, reducing risks by

improving social security measures and developing self-sustaining artisan business institutions. Transferring

the marketing skills, building market intelligence network and providing access to technology are crucial to

translate market knowledge into marketing skills. When such kind of systems are created where the artisans

are in direct contact with the dynamic scenarios, a way to sustainable artisan livelihoods will emerge and this

sums up Chitrika’s core philosophy.

Chitrika will primarily work in Andhra Pradesh covering five artisan livelihoods by the year 2015. Chitrika’s

mission is to enhance the livelihoods of the artisans in Andhra Pradesh. In the next 10 years it will improve the

livelihoods of 10,000 artisans in Andhra Pradesh. By reaching out to 10,000 artisans it will emerge as the

largest development agency, within civil society, working for artisans in India. Apart from support to artisans in

their current livelihoods, Chitrika will also help artisans in accessing other employability opportunities.

B1 – CHITRIKA’S OBJECTIVES

1. Improving the financial returns, economic benefits and contributing towards social well being of artisans.

2. Developing and resurrecting self sustaining institutions of artisans

3. Providing artisans access to technology, finance, design and market inputs

4. Developing human resources for enhancing artisan livelihoods – service providers, professionals and

volunteers

5. Extending support services to other organizations and institutions working with artisans across the

country

6. Creating and developing common platforms to bring together artisans, their organizations, professionals,

service providers and other institutions

7. Developing alternatives livelihoods for the artisans

8. Advocating better legal and policy environment to support the livelihoods of artisans.



B2. STRATEGIES AND APPROACH

Chitrika will concentrate its efforts on Artisan rather than the Art. The basic idea is to provide better living to the artisan either through the existing livelihood or through alternative livelihoods as per the choice of the artisans. In the existing artisan livelihoods and for exploring new livelihoods, “youth” will be the main focus.

The organization will work with different players in the value-chain. Interventions fail to benefit the artisans or reach only partially due to inefficiencies in the delivery channel. These inefficiencies range from incorrect identification of beneficiaries to corruption. In the long run, the underlying point will be to rectify the channels through which the benefits flow to the artisans.

Experimenting with different institutional forms will also be the focus of Chitrika. Strengthening the producer business institutions and where ever need be form appropriate institutions like producers’ companies, artisan common interest groups, partnerships, private companies in each of which artisan stake and control will be the central focus. In terms of finances, the organization will try to build in the stakes of the artisans in every possible intervention to minimize dependency and for the long-term sustainability of the interventions. Building a marketing channel that is owned by the artisans is one of the crucial interventions to create space for producers in the market.

Technology focus will be built into the intervention from management of institutions, tools of the artisans,

market intelligence, to connecting with various players.

Chitrika will reach out to the artisans through direct implementation and through partnering with other artisan

NGOs/Government/CBOs. It will support and groom professionals at each cluster level either through its own

pool of human resources or through partnerships where hand-holding support will be provided to the staff of

the NGOs. The emphasis will be to develop local professionals. Teams will be developed at the headquarters to

provide support in the direct implementation.

B3 - PERFORMANCE OF CHITRIKA (YR AUG 2005 – MAR 2010)

Domain Progress

1 Business Institution Management

1. Promotion & Support services to three producer enterprises

a. Audit Services – 4 times in an year

b. Marketing Services - Sales worth Rs.. 30 lakhs in 2.5 years

c. Financial Services – Up to Rs. 10 lakhs working capital loans

d. Legal Support – Affiliation to institutions/registrations under MACS Act

e. Technology Services – Repair/replacement of equipments, introduction of new pre-loom equipments

f. Training of the cooperative employees in finance, audit, marketing and production management

2 Knowledge Management 1. Studies



Domain Progress

a. Cotton Yarn Price Volatility, IISD, 2007-08

b. Pan Andhra Pradesh Marketing Study, SDTT, 2008-09

c. Women in Weaving, Oxfam India, 2009-10

d. Rajoli Weavers – Post Flood Situation Report 2009 - 10

2. Articles

a. Cover story on weaving in “Transforming India”

b. Serious of articles on cotton yarn and lac-ware products in “Transforming India”

3. Capacity Building material for Producers – 4 Manuals in Telugu

3 Marketing Management 1. Marketing Support to cooperatives

2. Developing Trader Database on handlooms – Over 100 traders in AP

4. Developing institutional tie-ups for the cooperatives – 3

4 Financial Management 1. Raising finance through grants/consulting/loans

a. Grants – Rs. 15 Lakhs

b. Loans for Cooperatives – Rs. 20 Lakhs

c. Consulting – Rs. 10 Lakhs

2. Developing Financial systems for the producer institutions

3. Financial services to the cooperatives – access to finance, audit

5 Human Resources 1. Recruitment of Staff – 15

2. Development & implementation of HR policy for Chitrika

3. Development of HR policy for the cooperatives in Telugu

4. Training and skill development of 100 artisans, 24 board of directors, 4 employees of cooperatives

6 Technology & Design Management

1. Development of nearly 200 new designs

2. Exploration of technologies for dyeing and pre-loom work

3. Improving loom quality through technological modifications

4. Introducing better technologies for dyeing, production and marketing



Domain Progress

7 Consulting Assignments 1. Study on “Deccani Wool in Andhra Pradesh”, Anthra, 2005-06

2. Designing Production Management Systems for “Vasundhara Gramothan Samithi”, Urmul, Rajasthan, 2006-07

3. Registration of cooperative society and training of women involved in Banjara Needle Craft, Crafts Council of AP, Yellamatanda, AP, 2006-07

4. Strengthening the cooperative of Kondapalli Toy Producers, LANCO-LIGHT, 2008-09

5. Business planning for Endogenous Tourism Sites in Jaipur, Kullu, UNDP, 2008-09

6. Training Coordinators of Jeevika Project (Bihar Rural Livelihoods Project),2008 – 09 and Asian Heritage Foundation on “Developing Artisan Livelihoods” in collaboration with ALC India

7. Business Planning and Institutional Development training to artisans of Partners of Oxfam Australia in collaboration with ALC India

Note - Detailed activities of Chitrika and Performance of the cooperatives have been presented in the

Annexure 1 – 5



C. GOAL (YR 2010 TO YR 2020) –

Chitrika - Artisan Development Foundation will promote self-managed and self-sustaining institutions of artisans, supporting livelihoods of 10,000 artisan households directly and 100,000 households indirectly. Towards achieving the goal Chitrika recognizes importance to collaborate and work with various stakeholders across the value chain of weaving and artisan production subsectors using partnerships at various levels.

D. OBJECTIVES (YR 2010 TO YR 2020) -

Chitrika, would improve the economic status of the artisans through a variety of interventions. The main objectives of the next 10 years are mentioned below –

D1. Develop Self-Managed and Self Sufficient Artisans Collectives – 100 village level cooperatives, 10 Federations, 10 trade unions and 1 marketing company owned by artisans. These institutions will cover 10 clusters spread across three different regions of Andhra Pradesh resulting in improved income of 10,000 artisan households by 30%.

D2. Linking Collectives to Vectors - To develop strong forward and backward linkages across the value-chain – 300 value addition units : raw material, dyeing, garmenting and packaging, learning schools (for knowledge up gradation and market information development), technological labs, marketing units (100 local shops, 100 institutional buyers and 500 retailers), finance (550 Crores investment/working capital).

D3. Educating Value Chain Actors – To educate 10,000 artisans, consumers, market intermediaries and political representatives on the need to promote artisan products. Artisan products are reliable, pro environment and generate large employment. Including promotion of brands (weaves, hand-crafts) for the products.

D4. Greening Artisan Value Chain Processes – To develop ecological and sustainable production practices across the value chain, contributing 10% of the total production and sales of artisans. Address issues related to production, processing, marketing, reducing chemical and plastic inputs and increased regeneration of natural resources.



E. OPERATIONAL AREA – (CHANGE THE MAP WITH NEW CLUSTERS) -

These clusters identified in the maps account for almost 50% of the total artisan population in Andhra Pradesh. Exact locations within the cluster identified will be done after preliminary base line studies to be conducted by Chitrika before venturing in to the location. However, based on the secondary data we have shortlisted following 10 clusters as priority based on the number of artisans in the cluster.

The main clusters where Chitrika wants to work are listed below:

# Cluster District Craft

1 Ponduru, Rajam, Laveru Clusters Srikakulam Weaving

2 Etikoppaka Vishakapatnam Lacware

3 Bandaru Lanka East Godavari Weaving

4 Kothapet Warangal Durries

5 Ikkat Weaving Clusters Nalgonda Weaving

6 Epurupalem, Jandrapeta Chirala Weaving

7 Bobbili Vizayanagaram Weaving

8 Rajoli Mahbubnagar Weaving

9 Madanapalli Chittoor Pottery

10 Urban Craft

11 Powerloom Cluster



F. ARTISAN DEVELOPMENT INSTITUTIONAL MODEL -

The institutional structure of the “artisans network institution” has been developed after much debate and internal reflection processes from the experience gathered in the last few years. Chitrika had the privilege and opportunity to get associated either through voluntary work or through consulting assignments with majority of well-known craft sector base development agencies. During years exposure to Kalaraksha – Kutch, Kutch Mahila Vikas Sangathan & Khameer – Kutch, Asian Heritage Foundation – New Delhi, Rangsutra – New Delhi, Urmul Bunkar Vikas Samithi – Vasundhara – Bikaner, Mitan Producer Company – Belgaum, Maya Organic – Bangalore, DESI – Bangalore, Crafts Council of Andhra Pradesh – Hyderabad and Dastakar Andhra – Hyderabad has helped Chitrika to formulate and design robust institutional model to ensure that the weavers and artisans are centre to all the interventions and they derive the maximum benefit. Learnings from these various programs and institutions have helped Chitrika to sharpen its own intervention model.

For the handicrafts sector the member level services will vary in terms of inputs and outputs. While the basic service model will remain the same, the product specific needs may evolve over the period of time. The cluster level marketing federation proposed will be more a commission agent focused on marketing aspects rather than value addition. All value addition units are to be streamlined at the village level itself.

Specific functional clarity of the different tiers of the institutional model is presented below in the table –

# Functional Tier Specific Roles & Activities

1. Primary Village Level Units

a. Responsible for member level services related to inputs, outputs, processes and also overall welfare

b. Responsible to manage backward linkages through development of yarn bank, learning centre, technology & design, financial services, lend tools and develop pre-processing units.

c. Responsible to manage the forward linkages through establishment of garmenting and other value addition units, development of local shops,

d. Develop unit for loom-less weavers and asset less artisans.

2. Cluster Level Units a. Develop marketing network of whole sellers, retailers, commission agents, export market orders and other possible sources

b. Develop the brand and build consumer networks

c. Coordinate with government and other stakeholders as per needs of the primary village level units.

Registration of these primary village level units will be done in Andhra Pradesh Mutually Aided Cooperative Societies Act, 1995. At the cluster level the units will be registered either in the liberal cooperative societies act or producer companies act.

Chitrika proposes to replicate such a model in each of the three clusters of its operations. These three clusters will be chosen each in one of the three major regions of Andhra Pradesh - Coastal Andhra, Telengana and Rayalaseema.

In the following page the intervention model is given –

G. PROGRAM INNOVATIONS

This institutional program has been developed with certain central ideas in mind. The central ideas in itself are based on certain basic principles –

G1. Artisan Local Economic Clusters – Most artisans including weavers are organized in a cluster of villages. Economic services and models are developed in that area with first level aggregation being the master craftsperson or master weaver. So keeping this time-tested model in view, the primary level units at the village will be aggregating services to artisans. When several such units, at least 5 exist within the local economy, the realizations of the rest of artisans (those who are not part of the network) due to existence of alternate chain and through improvements in the time tested existing chains will add value to their livelihoods

G2. Single Window Integrated Services – Master Crafts-persons and Master Weavers specialized in integrating services at the producer household level. The convenience and bouquet of services related to inputs and outputs management will be provided to the artisan.

G3. Technological Solutions to Preproduction Activities – Improved technological solutions have been evolved in better performing clusters. Those technologies related to weaving and other crafts will be made available to the artisan improving overall productivity and realizations.

G4. Local Value Addition Units – Value addition units at the village level for the artisans is an important aspect for improving realization of artisans and sustaining the changed market scenario. So keeping this in view - Development of value addition units – garmenting, block printing, embroidery, market information systems, design innovation learning centers and input banks will be done across the network at the primary and secondary levels..

G5. Greening Production Practices – Wherever possible the more organic and greener solutions for the production and marketing practice will be developed, including related to inputs, colours, designs and energy practices. These will help artisans look at sustainable production and marketing solutions to be evolved with a triple bottom line focus.

G6. Establishing Viable Enterprise Solutions – One of the key elements to learn from the traditional market chain of artisans, is that each player in the value chain had a viable business model in place and so the new generation enterprises for artisans will also be viable and profitable business enterprises.

G7. Development of Artisan Brands – “Weaves” and “Hand – Crafts” As brands have already been developed by Chitrika and the cooperatives, it will register the brand as a trademark for the network of weavers & artisan institutions. These brands will be sold across the local and international markets through appropriate tie-ups and arrangements.



H. PROGRAM COMPONENTS –

The ten-year Artisan Development Plan has been created keeping in view the overall mission and vision of Chitrika. For achieving the desired goals as, specified earlier, the work has been divided into four major program components and program activities. These are as mentioned below in the table –

# Goal Components Program Activities

a. Developing Cooperatives

b. Developing Chambers of Artisan Enterprises

c. Conversion of Traditional Cooperatives

d. Developing Artisan Marketing Company

d. Developing Collaboration with Government Schemes

a. Developing Viable Value Addition Units

b. Market Development

c. Financial Resources - Artisan Bank

d. Technological Upgradation & LAB

e. Artisan Design School

f. Production Management

a. Producers

b. Intermediaries

c. Political Representatives & State Government

d. Consumers

a. Production Process Improvements

b. Market Development

Linking Collectives to

Vectors

Development of Self

Managed and Self

Sufficient Artisan

Collectives

Educating Value

Chain Actors

Greening Artisan

Value Chain Process

A

B

C

D

Promote Self

Sustaining

Institutions of

Artisans



H1. DEVELOPMENT OF SELF-MANAGED AND SELF SUFFICIENT ARTISAN COLLECTIVES

In the next 10 years Chitrika’s primary focus shall remain on development of artisan collectives. Chitrika will develop artisan collectives through various program activities – developing cooperatives, developing chambers of artisan enterprises, conversion of traditional cooperatives, developing artisan marketing company and developing collaborations with government schemes. All these will form networks across districts and state.

Through this network of collective enterprise it proposes to reach out to 10,000 artisan households. The important outcome indicators on which Chitrika will work in the next 10 years are mentioned below in the table -

Indicators Coverage Explaination

a. Number of Collectives

Developed 121

100 Cooperatives, 10 Chambers of Artisan Enterprises,

10 Federations, 1 Marketing Company

b. Number of Artisans Covered 10,000 100 Cooperatives, 10 Clusters

c. % Income Enhanced 30%

Current average income is Rs 50,000 per annum per

household

d. % Increased Access to

Government Schemes 100%

Access to 5 Important Schemes - Identity Card, Credit

Card, Health & Life Insurance & Pension

e. Number of Traditional

Cooperatives Converted 40

Number of Traditional Cooperatives converted to New

Generation Cooperatives

H1A. DEVELOPING COOP ERATIVES

The growth projections on the number of artisans, clusters, villages and other federations are mentioned below for reference.

# Parameter Base Yr 1 Yr 3 Yr 5 Yr 7 Yr 10

Out Reach

1 Number of Weavers 92 500 2,000 5,000 7,500 10,000

2 Number of Weaver Households 46 250 1,000 2,500 3,750 5,000

3 Number of Cooperatives 2 5 20 50 75 100

4 Number of Villages 2 5 20 50 75 100

5 Number of Clusters 1 1 3 5 7 10

From a base of 92 artisans, Chitrika proposes to reach out to 10,000 artisans. It would by then operate in 100 villages and 10 clusters across Andhra Pradesh. While the growth rates of the cooperative and the number of households looks small compared to total artisan population in Andhra Pradesh (2 Lakh Households) in terms of business volumes and overall sales it will be Rs 180 Crores per annum. This will ensure that each artisan household per capita per year realizes Rs 72,000. Consolidated business figures are presented in the table below –




Out Reach

1 Number of Artisans 92 500 2,000 5,000 7,500 10,000

2 Number of Cooperatives 2 5 20 50 75 100

Production Details

3 Production in Rs Lakhs 7.59 137.50 825.00 2,850.00 5,343.75 9,000.00

Sales and Marketing Details

4

Sales in Rs Lakhs (assuming 80%

Production will be Sold) 6.98 126.50 759.00 2,622.00 4,916.25 8,280.00

H1B. DEVELOPING CHAMBERS OF ARTISAN ENTERPRISES - ASSOCIATION

In order to ensure that the artisans and artisan enterprises are able to effectively interact with the government, negotiate better terms for practicing their livelihoods and for earning adequate returns, favourable policy in terms of raw material prices, permits and export/trade incentives can be negotiated by these chambers.

For each cluster there will be one chamber association will be formed, so that in the next 10 years Chitrika will have 10 chamber associations promoted in the clusters. These chambers will not only have the newly promoted cooperatives but also have the old cooperatives (part of the AP Handlooms Cooperative Marketing Federation (APCO) network), master weavers and other artisan related enterprises operating in the area. The Chamber will be operating at District Level and will have to be networked at State Level.

H1C. CONVERSION OF TRADITIONAL COOPERATIVES

In Andhra Pradesh, there are 1135 primary handloom cooperatives serving the needs of more than 60,000 weaver members. These cooperatives serve the needs of the members but are largely dependent on the government subsidies and support. These do not function as true cooperatives where members are in control of the business operations and take responsibility for the profit and loss of the transactions. As government resources are getting meagre the support being extended has also largely come down. At the same time, changing market scenario requires these cooperatives to change their management and governance practices in order to effectively meet the needs of artisans.

For conversion of the cooperatives Chitrika will undertake systematic process. It will involve taking the members through an exposure visit, reflective discussions and legal modifications. The general bodies of these cooperatives have to pass a special resolution for change of registration. The AP Mutually Aided Cooperative Societies Act 1995 (APMACS Act 1995) is liberal in its framework giving the responsibilities and control to members.

This pioneering effort of Chitrika will require management and sensitive facilitation of different stakeholders like APCO, Andhra Pradesh Handlooms and Handicrafts Department officials, AP Cooperative Department and the central stakeholders - governing boards and general bodies of various cooperatives across state.

The only such attempt made earlier is in the dairy sector. Many district milk producer cooperatives have opted out of AP Cooperative Societies Act 1964 and converted themselves into APMACS Act 1995 after having understood the advantages of being in liberal cooperative act. Post conversion the cooperatives today are



performing much better and meeting the needs of producers than when they were part of AP Dairy Development Co-operative Federation Limited (APDDCF).

In the next 10 years Chitrika will be able to educate 40 traditional cooperatives to convert themselves in to new liberal cooperative societies act.

H1D. DEVELOPING ARTISAN MARKETING COMPANY

In the next 10 years Chitrika will be able to network federations of artisan cooperatives in a cluster to come together and promote a state level marketing company. The marketing company will be owned by federations while they will also invite private investment from various possible sources. It might also be useful to consider possibility of promoting public limited company so that large number of consumers of artisan products become owners or share holders of the marketing company. At the state level a marketing company will be formed.

H1E. DEVELOP COLLABORATIONS WITH GOVERNMENT SCHEMES

In the next 10 years, Chitrika will improve the outreach of government schemes by 100%. Currently the government through its various schemes like artisan identity cards, artisan credit cards, artisan insurance (both life and asset) and various other subsidies attempts at supporting the livelihoods of artisans. However, the outreach of these schemes is very poor. Not more than 30% of the artisans are able to access them as these schemes are channelled through the cooperatives. There is a need to integrate artisans to the government services in order to improve the livelihoods security.



H2. LINKING COLLECTIVES TO VECTORS

INPUTS PREPARATORY POST-PRODUCTIONPRODUCTION

Reduced Costs

Improved

Product

Mix

Higher

Revenues

•RM Depots

•Credit

•Risk Management

•Quality Standards

•Decentralized

Process

•Equipments

Supply

•CAD

•Energy Efficiency

•Eco Processes

•Quality Standards

•Value-addition

•Marketing

•Risk Management

•Market

Intelligence

•Warehouse

•Trademark

As depicted in the figure above the artisans require various services across the value chain in order to improve the business prospects. The competitive advantage for the artisans is derived through reduced costs, improved product mix and higher revenues. These three outcomes can be derived through various services across the vectors. Some of the important outcomes across the vectors are mentioned below in the table –


a. Number of Viable Value

Addition Units 420

Dyeing, Garmenting, Technology Centre, Artisan School

and Printing Units

b. Total Sales Supported Rs 90 Crores

Rs 1.8 Lakhs worth products to be sold per artisan

household (total 5,000 artisan households)

c. Total Finance Mobilized Rs 50 Crores Mobilization of Grants, Loans, Debts and Others

d. Number of New Technologies

Introduced 10

Change in Production Process - Decentralized

Spinning, Designs and others

The growth in the value addition units has to keep pace with the growing volumes of sales and production volumes. At the same time growth cannot be at the cost of loss of quality standards. The critical challenges in this particular component are to develop the skill base and production quality in line with the changing trends and consumer demands. Improving the quality of production through better market information access, learning centre and technology up gradation in few traditional processes will be the key in developing the long term competitive advantage for the business enterprises. The envisaged growth in the value addition units are mentioned below –




Value Addition Units

1 Number of Yarn Banks 2 5 20 50 75 100

2 Number of Dyeing Units 2 5 20 50 75 100

3 Number of Handloom Units 2 5 20 50 75 100

4 Number of Garmenting Units 2 5 20 50 75 100

5 Number of Technology Centres 1 1 3 5 7 10

6 Number of Artisan Design Schools 1 1 3 5 7 10

H2A. DEVELOPING VIABLE VALUE ADDITION UNITS

As mentioned above the value addition units yarn banks, dyeing units, handloom units and garmenting units will be set up across the newly promoted cooperatives, while the technological lab and design schools will be established 1 in each cluster. The usual approach is to see them as support services to the cooperatives. In general, there is cross subsidization from the margins obtained in the marketed material. However, it is important that each unit is treated as separate strategic business unit and they are viable. Chitrika will strive to make them viable and independent profit centres. The units will evolve service models, which will pay the investment and also the running costs of the unit. Similarly, all the people associated with the units will also be given membership in the cooperatives.

H2B. MARKET DEVELOPMENT

At the end of Year 10 the newly promoted and developed artisan cooperatives together will market Rs 82.80 Crores worth end-products. These will be value added products. Various marketing channels will be developed in order to spread the risks. Traditional development agencies are concentrated either in export markets or high-end niche markets. These markets are not sufficient to support the large volumes of production that artisans make. So in order to support large number of livelihoods it is important that the cooperatives spread their market channels as shown in the pie charts above and not just for volumes but also in order to accomodate varied skills levels, multiple products and channels.



H2C. FINANCIAL RESOURCES – ARTISAN BANK

The financial resources required for artisan livelihoods development is Rs 65 Crores. Of the Rupees Sixty Five Crores - Rupees Fifty Crores (Rs 50 Crores, 50% of total production value) is required for managing the working capital needs and Rupees Fifteen Crores (Rs 15 Crores, Rs 5 Lakhs per Value Addition Unit, 420 Units) for development of the various value addition units. This amount has to be raised by the units through loans (both soft and commercial loans) from individuals, financial agencies, government departments and local credit institutions (SHGs & their federations).

Still at its formative stage, Chitrika is also looking at the feasibility of artisan owned bank, which can mobilize financial resources from the local area to leverage large external loans. It is very clear that given the quantum of the fund required, just depending on the grants is insufficient. So for Chitrika it will become important to deal with mainstream financial agencies including specialized banks like SIDBI to support the collective enterprises.

H2D. TECHNOLOGY UP GRADATION AND LABS

Over the years, Chitrika has realized that the support services which existed (both at the pre production and post production sides) are fast depleting. In the last two decades nearly 50% of the artisans have been forced to move out of profession due to poor realizations and reduced market acceptability of the products. Given this mass exodus, the households involved in support services have also depleted. So in the near future, technological solutions to mechanize simple pre production and postproduction processes will improve sustainability of the profession.

At the same time it is important to innovate on the basic production tools like looms and lathes used by artisans. Either combining with newer machines or developing improved tools will help enhance the productivity and compete with the alternate products emerging in the market. In Chitrika’s own studies across Andhra Pradesh’s well performing clusters, have always identified better technologies to support the changing needs of the market, improving productivity and product nature.

Specific to the weaving profession is the development of clothes with dyes where colour does not deteriorate with the age. Similarly, simple things like preshrinking of clothes add to marketability of the fabric. Such technological changes have to be introduced across the value chain.

With the advent of information technology, the possibility of developing information centres in each cluster having computer aided designing facilities will help a lot. Interactions with designers and other external experts will also happen with such changes.



H2E. ARTISAN DESIGN/MANAGEMENT SCHOOL

Artisan design/management school will be created in each cluster. These design schools will act as the core learning centres for artisans. Designing products that are acceptable in the changing market scenario is the key challenge. At the same time rapid technological development has happened in design development like computer aided designing. If these technologies have to reach the artisan the design schools should be accessible to the cooperatives that are going to be promoted. Apart from designs, management aspects related to collectives – systems, monitoring, costing, market assessment, projections, etc will be taught to the artisan collectives.

H2F. PRODUCTION MANAGEMENT

Development of productivity improving technology especially for preproduction processes is important. Unlike, traditional practices where the artisan himself/herself does a variety of activities at all stages - pre & postproduction mechanised alternatives are emerging. Studies in well functioning clusters indicate that mechanized processes helps improve the productivity and also ensures higher returns to the artisan.

At the cooperative societies level it is important to develop production plans optimizing the resources, meeting the varying skill levels, improving the product mix and adding value to artisan livelihoods. Another key intervention to be undertaken is related to inventory management.



H3 – EDUCATING VALUE CHAIN ACTORS

If the business enterprises have to sustain in the long run a lot depends on the nature of social capital Chitrika is able to nurture. Nurturing the social capital requires commitment of major resources towards development of skills, technical knowledge and attitude in the weavers and artisans. At Chitrika, for sustaining the business enterprises the following stakeholders have been identified to be trained.

The figure above indicates the various value chain actors in the artisan sector. It is important to engage with all these stakeholders in order the support better realization for artisans. These stakeholders need to be engaged through various forums, platforms and media. Chitrika proposes to develop a variety of media tool kits including – video – short films, television series, photo books, e-network and other things in order to engage with these stakeholders. The indicators for which Chitrika, will be accountable at the end of 10 years in this component are mentioned below -


a. Number of Value Chain Actors Educated 10,000 All actors put together

b. Number of Policies/Legislations/Rules/Orders 2 Changes in Policies/Legislations

Various strategies to be used under this component are outlined below –

1. Annual Value Chain Actors Forum – This is the forum through which annual meets of the various players involved in the handlooms and handicrafts subsector to discuss relevant issues will be developed. These forums can over the period become important platforms to advocate for change. Handloom and Handicraft Chambers will be developed in these forums. Each year, around a particular theme these meetings will be held.



2. Annual Advocacy Event – During the year Chitrika would undertake research on a particular subject of concern to large number of artisans and present the same in a nurtured policy advocacy event. This event will be hosted for the likeminded and progressive Ministers in both the State and Central Government levels. Few Ministers will be provided with regular technical support so that they get inputs to raise issues in the Assembly and Parliament.

3. Annual Meet of Artisan Trade Unions and Cooperative Leaders - Meetings of trade union and cooperative leaders of artisan groups from the civil society will be called together and provided a platform, for them to discuss and articulate the current realities and the sector development needs.

4. Mobilizing Consumer Opinion – Mobilizing the opinion and also resources from the not so poor for the sake of artisans will happen through variety of initiatives like workshops, learning tours, media tool kits and live demonstrations at various outlets. As mentioned earlier common brand names will also be developed for identifying the true and genuine artisan products.

5. Artisan Directory – First of its kind Artisan Directory will be developed so that there is “common use” information by various stakeholders.

The likely programs under this component are outlined below in the table –

# Stakeholder Wise Activities Explanation

1 Value Chain Actors

a . Directory of AP Handlooms Containing Details of All Actors in Handloom Industry - Yellow Pages of Handlooms

b. Value Chain Actors Forum Promotion Meetings for Value Chain Actors

c. Regular Yearly Meetings Regular Annual Congregation of the Value Chain Actors

2 Political Representatives & MLAs

a. Annual Meet on Issues of Weavers MLAs and Political Representatives 2 Day Meet

b. Technical Support for MLAs, MPs 4 Regular Reports and Meetings Every Quarter for few MLAs

3 Sensitizing Non Poor

a. School Workshops Workshops with Children on Weaving Products and Livelihoods

b. Photo Exhibitions Value Chain Based, Livelihoods of Artisans

c. Television Series Challenges and Hope in Weaving Sector - 12 Episode Series

d. Books Books on Livelihoods of Artisans

e. You Tube Channel for Weavers Video Channel on Weavers and Livelihoods

f. Weavers E Network Promote and Maintain Network of Weavers



# Stakeholder Wise Activities Explanation

4 Trade Unions and Cooperatives

a. Trade Union Leaders Meet Meet of Trade Unions of Weavers

b. Handholding Support to Trade Unions

Few Trade Unions Handholding Support for 3 days Every Quarter

c. Cooperative Leaders Meet Meet of Cooperative Leaders of Weavers/Artisans

d. Handholding Support to Cooperatives

Few Cooperatives Handholding Support for 3 days Every Quarter

5 Government Programs Collaboration

a. Assessment of Government Programs

I. Artisan Credit Cards Study and Report Publication

II Artisan Insurance Study and Report Publication

III Artisan Identity Cards Study and Report Publication

b. Collaboration Workshops Meet Every Year to Collaborate with Government

Within the cooperative network that will be promoted, following key stakeholders need to be educated. Systematic and serious efforts will be undertaken for trainings and skill development of the artisans and their representatives in the cooperatives.

Based on the experience gained in the last four years and also from the examples of other successful interventions the following needs assessment has been carried out –



These needs will be addressed through variety of capacity development programs. The projected number of programs and their nature is summarized below in the table given in the annexure. The numbers of programs are many and it would require utilizing well-established infrastructures already available at different locations to conduct these programs. In some cases the existing business enterprises themselves can act as training centres and their experienced members as the resource persons for the program.

Keeping the challenge in view Chitrika will develop a pool of Artisan Trainers and Leaders who will undertake these trainings on regular basis. Chitrika’s own staff will also be trained in various skills and knowledge aspects. Chitrika proposes to use variety of strategies –

1. Development of Models – For each critical process and output, models will be developed in the existing business enterprises. These models will be developed within the clusters at appropriate levels and numbers.

2. Learning by Doing – Skill training centers will be developed where most of the training will happen as the practice is developed directly. Instead of classroom based training sessions direct experiential learning will be focused upon.

3. Exposure Visits – Various sites within the country and the state would be identified and the appropriate notes, discussion points and learnings will be documented and shared across.

4. Communication – Audio-video-print Material, Campaigns using a variety of media. Communication material will widely be used to develop tools, which will be useful to train even semi literate members of the artisan business enterprises.

The variety of programs to be used for nurturing the social capital will vary according to the need and improvisation. But broadly Chitrika is looking at conducting induction, sensitization, skill training, orientation and knowledge development programs. The programs envisaged for developing capacities of the stakeholders in the cooperative network are enlisted below in the table –



# CB Program Explanation

1 Member Capacity Development Process

a. Business Economics Training 2 Training of 1 Day, 25 Batch Size

b. Legal Compliances 2 Training of 1 Day, 25 Batch Size

c. Technology & Design Up gradation 2 Training of 4 Days, 25 Batch Size

2 Board Of Directors Development Process

a. Management of Cooperative Enterprise 1 Training of 5 Days , 12 Members

b. Legal Compliances 1 Training of 2 Days , 12 Members

c. Conflict Resolution 1 Training of 1 Day, 12 Members

d. Government Collaborations 1 Training of 1 Day, 12 Members

3 Enterprise Employees Development Process

a. Management of Cooperative Enterprises 1 Training of 10 Days, 2 Members

b. Management Systems & Business Rules 1 Training of 7 Days, 2 Members

4 Technical Trainings

a. Managing Garmenting Units 1 Training of 10 Days, 20 Members

b. Managing Local Shops 1 Training of 10 Days, 20 Members

c. Natural Dying Process 1 Training of 10 Days, 20 Members

d. Design Development 2 Trainings of 7 Days, 20 Members

e. Computing Systems 1 Training of 10 Days, 20 Members



H4 - GREENING ARTISAN VALUE CHAIN PROCESS

In the long run sustaining the weaving and handicrafts sector depends on the way green processes are adopted across the value chain. Several studies have shown that clothing and other essentials form important component in contribution towards the ecological footprints.

14% of the total ecological footprint due to human life is contributed by Clothing. With increasing awareness of climate change and the need to lead harmonious lifestyle compatible with the environment, the need to explore organic processes across the value chain of artisans is important. Some of the elements that will be explored are mentioned below in the table –

# Stage Ecological Process

1. Raw Material Organic Inputs – Cotton, Wood & Metals. This requires backward integration with farmers for organic cotton production, tribals for wood, and other producers.

2. Dyeing Organic Dyeing technology needs to be developed, documented and artisans trained. This will also involve developing supplier database and contacts for the natural dyes. Currently very few players are operating in this area. Wider network and research is central to developing this area.

3. Energy Where ever energy and electricity is used in the production and marketing process the possibility of using renewable energy technology will be explored. One definite possibility is usage of solar lamps at weaving and artisan production sites.

4. Water Reprocessing

Dyeing, shrinking and softening fabric are the major stages within the weaving value chain where water is used. This water can be recycled and cleaned to reduce the water consumption. Similarly, in handicrafts production if there are stages water is consumed the greener processes will be experimented with.

5. Marketing Reducing the overall transportation costs/distances means concentration on the local markets. So developing retail chains locally so that the total distance of product travel, that is artisan product miles is reduced.

In the next 10 years, Chitrika will be accountable for the following indicators –


Products produced after green processes are

adopted across value chain.

Total Sales of Eco Friendly

Products

Rs 20

Crores



I – HUMAN RESOURCES AT CHITRIKA

# Human Resource Level Base Salary Per Annum

Yr 1 Yr3 Yr 5 Yr 7 Yr 10 Rs

1 Chief Executive Officer 1 1 1 1 1 1 4,80,000.00

2 Senior Manager 0 2 4 5 7 8 4,08,000.00

3 Manager 1 1 3 5 5 5 3,00,000.00

4 Senior Executive 1 2 4 4 4 4 1,80,000.00

5 Executive 2 2 2 4 4 4 1,20,000.00

Sub Total 5 8 14 19 21 22

Per Head Per Year

Capacity Building Fund for Staff 8 14 19 21 22 5,000.00

Staff Get Togethers and Retreats 2 2 2 2 2 15,000.00

Staff Recruitment Process 6 1 0 0 1 5,000.00

One Time Communication Subsidy 10 0 0 1 2 15,000.00

Physical Number Present

Chitrika’s human resource philosophy is derived more from the development agenda it has set for itself. Artisan producers’ empowerment and development being central it would operate with as much minimum human resource as possible. Professionally qualified to understand business and technically sound to improve technical effectiveness and efficiencies will not be compromised on. Leveraging externally available resources through internships, volunteering and through consulting associates will ensure the overall costs to be low. Therefore keeping these basic principles in view, at the end of 5 years Chitrika will not have more than 12 employees. That works out as 1 employee for every 133 artisans supported by Chitrika directly.

The hierarchy of human resources in Chitrika is as mentioned in the table above. Chitrika will be organized in functional domains or verticals providing a set of services to the cluster level enterprises developed in the field. The domains are –

# Domain Specialisation Codes

a Finance Management & Administration FMA

b Information, Communication and Knowledge Management ICK

c Human Resource Management HRM

d Technology & Design Management TDM

e Marketing Management MKM

f Business Institution Management BIM

g Social Security & Legal Resources SLR

Services for the network of artisan enterprises will be provided by this team of professionals in each of the domain as organized above. Each domain may have a group of employees from different levels working together. The teams will

1. Provide basic services to the enterprises at cost charged as service fee by Chitrika 2. Develop consulting services to other organizations, development agencies and programs - generating

revenue to Chitrika



3. Manage the internal affairs of Chitrika.

Looking into the challenging tasks ahead for Chitrika it proposes to recruit professional staff well qualified in technical or managerial skills. Therefore, while the salaries will be much higher than what regular development agencies pay for similar position, it would like to justify the same with expected benefits to the artisans. A detailed calculation of the cost – benefits of Chitrika’s Program Interventions are presented in the subsequent pages.

Chitrika has developed detailed HR Policy and Practice note outlining qualifications, benefits, performance management system and capacity development processes within the organization. The Policy and Practice note has been approved by the Board of Chitrika. Appropriate modifications to the same will be carried out every year keeping in view the experience and changing needs.



J - FINANCIAL RESOURCES AT CHITRIKA

J1 – PROGRAM COSTS OF CHITRIKA (10 YEAR PLAN)

# Goal Components Budget Nature of Finance

Linking Collectives to

Vectors

Development of Self

Managed and Self

Sufficient Artisan

Collectives

Educating Value

Chain Actors

Greening Artisan

Value Chain Process

A

B

C

D

Promote Self

Sustaining

Institutions of

Artisans

Grant

Rs 10 Crores (Rs 10,000 per artisan) Grant

Rs 3.15 Crore (Rs 75,000 per value

addition unit)Grant

Rs 21 Crores (Rs 5 Lakhs per value

addition unit)Loan

Rs 50 Crores Loan for Cooperatives Loan

Rs 2 Crore (Rs 2,000 per value

chain actor)Grant

Rs 1 Crore (Rs 1,000 per artisan,

1,000 Artisans)

In total Chitrika, Artisan Development Foundation is looking Rs 20.06 Crores grant for undertaking all the programs in the next 10 years. It will in turn raise Rs 71 Crores loan from various formal financial sources. It may tie up with Banks (Nationalized or Private) to mobilize these resources. It shall even consider raising loans at low cost directly from like-minded individuals. In the recent past it has mobilized program costs from Government sources and various other programs also.

J2 - PROGRAM SUPPORT COSTS FOR CHITRIKA

Program Support Costs of Chitrika for the 10 years have been divided in three components. The three components are –

J21 – Human Resource Costs of Chitrika

J22 - Institutional Processes & Establishment Costs of Chitrika



J21 – HUMAN RESOURCE COSTS OF CHITRIKA

For undertaking all these programs Chitrika will incur costs mainly for meeting the human resource and institutional costs. The estimates of Human Resource Costs are presented below –

Yr 1 Yr 3 Yr 5 Yr 7 Yr 10

1 Chief Executive Officer 4.80 4.80 5.28 5.81 6.39 7.03

2 Senior Manager 4.08 8.16 8.98 9.87 10.86 11.95

3 Manager 3.00 3.00 3.30 3.63 3.99 4.39

4 Senior Executive 1.80 3.60 3.96 4.36 4.79 5.27

5 Executive 1.20 2.40 2.64 2.90 3.19 3.51

Sub Total 21.96 24.16 26.57 29.23 32.15

Per Head Per

Year in Rs

1 Capacity Building Fund for Staff 5,000.00 0.40 0.70 0.95 1.05 1.10

2 Staff Get Togethers and Retreats 15,000.00 0.30 0.30 0.30 0.30 0.30

3 Staff Recruitment Process 5,000.00 0.30 0.05 - - 0.05

4 One Time Communication Subsidy 15,000.00 1.50 - - 0.15 0.30

Total 24.46 25.21 27.82 30.73 33.90

Grand Total (Cummulative 10 years) 278.33

Per Artisan Costs (for 10 years - 10,000

artisans in total) in Rs 2,783.28

5 Yrs Salary Bills RsSalary Per

Annum Rs.Human Resource Level#

Figures in Rs Lakhs

The table above indicates that Chitrika needs at least Rs 2.78 Crores as Grant for meeting the human resource costs for 10 years.

J22 – INSTITUTIONAL PROCESSES & ESTABLISHMENT COSTS OF CHITRIKA

Chitrika will run with decent infrastructure. It does not propose to develop own physical infrastructure for itself. With hired central and 10 cluster level offices it will function in the next ten years. If there is some surplus that Chitrika is able to generate it will slowly either invest in developing a corpus or in development of some basic physical assets.

For facilitating better documentation, reporting and communication among the staff members and would be extended subsidy (Rs 15,000 per Employee) to purchase laptop, mp3 recorder, and camera depending on the location. These devices will help the organization information to be updated according to the latest scenarios.

ORGANIZATIONAL LEARNING PROCESSES -

Chitrika will institute learning processes within the organization. Every year Chitrika publishes Annual Learning Document. While generally organizations prepare Annual Reports for Stakeholder Accountability, Chitrika prefers to prepare an Annual Reflections Document called Annual Learning Document.

Similarly in the next 5 years it proposes to conduct some institutional assessment studies to understand and obtain external views. These will be part of the reflection cycle to be established within the organization so that Chitrika at the end of this tenure emerges as a true Institution. There will be four studies related to organizational effectiveness, strategic and program planning & monitoring & learning exercises.



For Chitrika Institutional Processes and Establishment it requires Rs 1.12 Crores as Grant in the next 10 years. The details of which is presented in the table below -

# Parameter Unit Yr 1 Yr 3 Yr 5 Yr 7 Yr 10

1 Overall Learning Process

a. Organizational Effectiveness Study Rs Lakhs 2.00 2.00

b. Strategic and Program Plan Rs Lakhs 2.00

c. Monitoring and Learning Studies Rs Lakhs 2.00 2.00

2 Chitrika Institutional Overheads

a. Chitrika Central Office Rs Lakhs 1.80 3.00 4.20 4.20 4.20

b. Chitrika Cluster Office Rs Lakhs 0.36 1.80 3.60 5.88 8.40

c. Staff Equipment Rs Lakhs 1.20 0.90 0.75 0.30 0.15

Total Rs Lakhs 3.36 7.70 12.55 12.38 14.75

Grant Total for 10 Years Rs Lakhs 112.87

Chitrika Institutional Process & Establishment Costs - 10 Years

J3 – OVERALL FINANCIAL REQUIREMENT FOR 10 YEARS

# Component Rs Amount (In Crores)

1. Program Costs – Grants 16.15

2. Program Costs – Loans 71.00

3. Program Support Costs – Human Resources – Grant 2.78

4. Program Support Costs – Institutional Processes & Establishment – Grant 1.13

GRAND TOTAL (Rs Crores) 90.06

The total funds required are Rs 90.06 Crores. Of which Rs 71 Crores will be raised as loans and Rs 20.06 Crores are grants required.



J4 - SOURCES OF GRANT FINANCES FOR 10 YEARS

# Sources of Finance Unit Amount

A Chitrika Grant Fund Rs Crores 19.01

B

Consulting Income (@20% Time of Employees in

Consulting) Rs Crores 0.56

C

Service Fee Income (@10% of Total Costs as Service Fee

from Cooperatives) Rs Crores 1.90

D

Service Fee Income from Educating Value Chain Actors

(@20% of Total Costs as Service Fee) Rs Crores 0.40

E Service Fee Income (from loans extended to cooperatives) Rs Crores 0.80

E Gap in Grant Funds Rs Crores 15.35

Sources of Grant Finances for Chitrika for 10 Years

Chitrika will mobilize these grants from various other institutional donors to the tune of Rs 15.35 Crores for its work in the next 10 years. This amounts to hardly Rs 15,350 as grant per household (10,000 households will benefit in this process from these cooperatives) without considering the fact that there will be indirect beneficiaries of this process.



ANNEXURE 1 - BOARD OF DIRECTORS

# Name Occupation/Designation

1 Mr. V.Madhusudhan

Chairman

M.Com, Development Professional, Director of Access Livelihoods Consulting India Private Limited; has more than 10 years of experience with Producer Business Enterprises

2 Mr. Abhiram Katta

Treasurer

ACA, PGDM –IIM (B) Presently working as a consultant for AT Kearny, India

3 Mrs. Vijaya Switha Grandhi

Secretary

PGDRM IRMA, Development Professional, founder of Chitrika, has more than 5 years experience in artisan livelihoods

4 Mr. Ashis Panda PGDRM IRMA, Development Professional, has 5 years experience in with Producer business enterprises involved in organic farming

5 Mr. Rajendra Shaw Cinema -FTI, Pune, Communication Professional, Founding member of Center for Development Communication (CDC), Hyderabad

6 Mr. Gopi Krishna TISS, Development Professional, is a founder of Mitan – Crafts Company and has more than 20 years experience in artisan livelihoods

7 Ms. Jhansi Post Graduate in Women’s Studies, Development Professional, has more than 13 years experience in working with various livelihood projects across Andhra Pradesh. Currently with Irrigation Department, Govt. of AP



ANNEXURE 2 – CONSULTANCIES & STUDIES OF CHITRIKA

Year Name of the organization Assignment

2005-2006 Sir Ratan Tata Trust (SRTT) Exploration of artisan clusters to carry out interventions in Andhra Pradesh

Anthra Sub-sector study of Deccani wool in AP

Urmul trust Production Management Systems Development for Vasundhara Gramothan Samiti, Bikaner

Crafts Council of Andhra Pradesh (CCAP) Capacity building for Banjara Needle Craft Lambada tribal women

2006-2007 International Institute for Sustainable Development (IISD) A study on price

volatility in cotton yarn industry

Center for Handlooms

Information and Policy Advocacy (CHIP)

Study on Wage status of Weavers in Srikakulam district

NISIET Sessions on “Role of NGOs in Artisan Livelihoods”

ALC India - FAO-IDRC Study on Urban and Peri-Urban Agriculture

Action Aid Asia NREGS Social Audit Documentation

ALC India Training Manual on Livelihoods

Sri Sai Educational Society Proposal writing on training and developing women artisans in Telangana

region under Integrated Cluster Development Approach

ALC India Manual on Collective Action for Enhancing Rural Livelihoods

2007-2008 GERES Evaluation of Wool Transformation Project, Ladhak



Year Name of the organization Assignment

ALC India Training Manual on Financing the Livelihoods of the Poor

Sreenidhi International School Programme on Khadi with students

2008-2009 Lanco LIGHT Strengthening Kondapalli Artisan Cooperative Society

UNDP Business Planning Support to communities under Endogenous Tourism Programme

ALC India – BRLP Training Programme on Promotion of Artisan Livelihoods

Sir Dorabji Tata Trust (SDTT) Pan Andhra Pradesh Cotton Handloom Market Study



ANNEXURE 3 – DONOR ORGANIZATIONS SUPPORTING CHITRIKA

Year Funding organization

2005-2006 Friends of Women’s World Banking (FWWB)

Cooperative Development Foundation (CDF)

2006-2007 Friends of Women’s World Banking (FWWB)

GMR Airport Authority

2007-2008 Humanist Institute for Development Corporation (HIVOS)

2008-2009 Sir Dorabji Tata Trust (SDTT)

GIVE India

Individual Donors/Investors



ANNEXURE 4 - PERFORMANCE OF ARTISAN INSTITUTIONS PROMOTED BY CHITRIKA

I. SRI UMACHANDRA SEKHARA MACS (SUCCS) (ORIGIN : NOVEMBER 2006)

# Head Number Remarks

1 Membership 34 4 new members

2 Production in Meters 30,000 meters 2.5 years

3 Sales Rs. 15 lakhs Cumulative

4 Net Profit Rs.2.5 lakhs 15 % of sales

5 Person Days of Work 200 Per weaver/per annum

6 Member Own Funds Rs. 3.5 Lakhs Deposits, Savings and undistributed profits

7 Chitrika’s Loan Rs. 0.3 lakhs Working capital, Consumption Loans, Market Development Fund

8 Working Capital Loan Rs. 5 lakhs From DRDA

9 Repayment Performance 100%

10 Technology Up gradation Production Beams, Loom settings changes, Warping wheel, winding machine

11 Human Resource available 3 Production in Charge

12 Average Monthly Income Rs. 2100 Per Member from Cooperative

13 Current Bankers 3 Andhra Bank, SBI, ABGVB



14 Board meetings Monthly 100% Attendance

One fixed and another for production planning

15 Member training 5 Cooperative management, quality, marketing

16 Cooperative Employee training 1 Hands on accounts training

17 Current collaboration for loans 2 DRDA, Individuals, Rang de

18 New Initiatives 3 Shop, Setting-up stage in dyeing & garmenting units

II. SRI NAVA DURGA MACS (ORIGIN: AUGUST 2008)

# Head Number Remarks

1 Membership 12

2 Production in Meters 3000 meters 1.5 years

3 Sales Rs. 3 lakhs

4 Profit Rs. 9134 Last year

5 Person days 100 Per weaver in an year

6 Member Funds Rs.5250 Deposits and share capital

7 Chitrika’s Loan Rs.4 lakhs Working capital, fixed and general loan

8 Average Monthly income Rs. 1100 Average of 50 meters in a month

9 Board meetings Monthly, Production Planning



10 Member training 1 Exposure visit to markets

11 Cooperative Employee training 1 Hands on accounts training

12 Repayment Performance 100%

13 Technology Up-gradation Production Beams

14 Human Resource 1 Production cum Marketing in-charge

15 Current Banker 1 Canara Bank

16 Current Collaboration for loans 1 Rang de, Chitrika

17 New Initiatives 1 Dyeing and Garmenting training

III. ETIKOPPAKA MACS (ORIGIN: OCTOBER 2008)

# Head 2008-09 Remarks

1 Membership 11

2 Production value Rs. 1.5 Lakh 12 months production

3 Sales Rs. 2 Lakhs Buyers in Hyderabad, Rs.60,000 worth orders in hand

4 Loss Rs. 25,000 As on February 2010

5 Person days 50 Per Artisan in an year



6 Member Funds Rs.3375 Deposits and share capital

7 Chitrika’s Loan Rs. 13,701 As deposits from all the members have to mobilized

8 Average Monthly income Rs. 500 30% of the capacity

9 Board meetings Monthly & Production planning

10 Member training 2 Chennapatna exposure visit and cooperative management training

11 Cooperative Employee training 1 Accounting, quality



ANNEXURE 5 - DIFFERENCE MADE BY CHITRIKA IN THE COOPERATIVES

# Aspect Then Now

1 Cooperatives 1 3

2 Increase in local wages - 30%

3 Increase in the incomes of the members of the cooperatives

- 30%

4 Pre-loom technology Decentralized processes requiring more manpower, cost, time

1. New warping wheel

2. Winding machine

3. Improve dyeing

5 Skills Weaving 1. New varieties

2. Accounting

3. Computer skills

4. Cooperative management skills

5. Costing

6. Marketing



# Aspect Then Now

6 Product Plain, colour and check weaves 1. Complete change in the colour palette

2. New checks and stripes

3. New self-woven fabric

4. Introduction of new yarn in the region – 2/60s and 2/40s

5. Garmenting

7 Marketing By traders Marketing by cooperatives with the support of Chitrika to three states – Delhi, Karnataka, Andhra Pradesh, cooperative owned shop

8 Income to Producers Through wages Through wages, profit and marketing commission

Documents

Chitrika 10 Yr Perspective Plan