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 DEMAND AND SUPPLY OF HANDLOOM INDUSTRY Darohar of North-East: Assam(Jorhat) GYANODAYA-V PROJECT REPORT SHAHEED SUKHDEV COLLEGE OF BUSINESS STUDIES SOURCE: Mr. Hiralal Kalita

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TEAM MEMBERS

1)  Aman Budhiraja………………………………………………………………………….

2) 

Devesh Revankar………………………………………………………………………… 

3)  Priya Agrawal……………………………………………………………………………. 

4)  Siddhant Arora…………………………………………………………………………... 

5)  Simran Soni………………………………………………………………………………. 

6)  Shubham Gupta………………………………………………………………………….. 

7)  Shubham Gupta………………………………………………………………………….. 

8)  Vartika Agarwal…………………………………………………………………………. 

9)  Vibhor Goel………………………………………………………………………………. 

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Contents 

TEAM MEMBERS ......................................................................................................................................................... 1

ACKNOWLEDGEMENT .............................................................................................................................................. 3

OBJECTIVES ................................................................................................................................................................. 4

INTRODUCTION ........................................................................................................................................................... 5

METHODOLOGY ADOPTED ..................................................................................................................................... 6

FIELD VISITS ................................................................................................................................................................ 7

INFORMATION GATHERED ..................................................................................................................................... 9

PROBLEMS FACED ......................................................................................................................................................... 9

OPPORTUNITIES IDENTIFIED FOR FURTHER PROPOSALS ........................................................................ 10

SUCCESS STORIES .................................................................................................................................................... 11

1) Story of jaishree Mohento .................................................................................................................................. 11

2) Story of Hiralal kalita- Head of All India Handloom Cooperative Society ........................................................... 11

PROPOSAL 1: E-COMMERCE-FLIPKART PLAN ............................................................................................... 12

Need of Ecommerce in handloom industry ................................................................................................................ 12

Problems faced in implementation of e commerce model in handloom industry ..................................................... 12

PROPOSAL 2: FASHION DESIGNING ................................................................................................................... 13

1.  Capturing the uncaptured market ............................................................................................................................ 13

2.  Design development ................................................................................................................................................ 13

3.  Product diversification ............................................................................................................................................ 14

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ACKNOWLEDGEMENT 

The journey of Gyanodaya V did not begin on 18th but much before it, and would not end on 29 th but

much beyond it. The learning from the entire process- pre journey, journey, and post journey –  would

remain etched in our memories and experiences. This project would not have taken such a concrete

shape without the guidance and motivation of many.

We would like to thank the University of delhi for providing us the opportunity to be a part of

Gyanodya:V and work on the project ‘ Demand and Supply of Handloom Industry’. We would also

thank our college in-charge for being so supportive since the very initial stages of gyanodaya proposals.

Grateful acknowledgement to Rehman Malik sir, project coordinator, for keeping us updated about all

relevant informations; Mr. Pattnaik for being extremely helpful with assamese language classes, and

introduction to assam.

We would also like to thank our mentor- Onkar sir, for being by our side all the time; group incharge-Baljeet Kaur madam and Tiwari sir; Pranjal Sir for providing us invaluable information whenever

needed;

Last but not the least we would like to thank all the officials, individuals involved in gyanodaya 5, for

making our journey comfortable, knowledgeable and memorable.

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OBJECTIVES 

•  To understand the culture of Assam depicted by the handloom sector.

•  To Study the dynamics of demand and supply dynamics of handloom sector of Assam

•  Proposing feasible solutions to the govt. bodies and DU consisting of indexes, detailed

methodology and graphical illustrations.

•  To collect contacts of various people which would help us in the project.

•  To identify the problems arising while observation of methods used there for manufacturing and

trading silk.

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INTRODUCTION

The handloom industry of the north east region is one that has yet not been utilised up to its potential.

The amalgamation of tradition and commercialisation is a boon for the entire handloom industry

particularly in Assam. However, in the race of modernisation and globalisation, we must not forget to

preserve the cultural identity and traditional significance attached to them.

The North Eastern States have a long tradition of handloom weaving, handicraft and sericulture. The

region accounts for more than 50 per cent of the handlooms in the country. However, most of the looms

produce for domestic consumption. The textile sector in the region has tremendous potential for growth

and creation of employment opportunities.

Handloom industry plays a dominant role in the cultural and economic development of the rural masses

in majority of the North Eastern States. Almost all tribes and communities in the hills and the plains of

the region are actively engaged in this activity.

This region has the highest concentration and a rich heritage of handlooms in the country. Hence,handloom sector plays a significant role in the economy of the region.

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METHODOLOGY ADOPTED

STAGE 1

• Conducting Preliminary Research at homethrough internet and identifying what all

governement schemes.

• It also incudes getting a beforehand idea

about the handloom industry in the north

east to prepare our questionnaire andconduct a survey based on it

STAGE 2

• Collection of data - Surveys , field interviews,telephonic interactions and personal

interactions- field work.

• Analyzing the data collected through

statistical and graphical tools.

STAGE 3

• Making proposals, suggesting solutions andconcluding results

• An overall analysis will be presented of theobservations taken in step 2 and the

proposals for rectifying and improving the

situation will be presented in this last stage.

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FIELD VISITSDAY-1 

SIBASAGAR

1) 

We interacted with the people ofSibasagar and got to know many facts

our project.

2)  We also noticed that most of the women

here had worn sarees unlike the changing

trends in the metropolitan cities.

3)  We came across a science teacher whom

we were really pleased to interview. He

told us about the violence that happened

recently because the locals were agitatedon the sale of duplicated silk garments

 brought from Banaras (UP) at cheaper

rates than the local products.

DAY-2

MAJULI

•  We also noticed that there was a

traditional hand woven cloth known as“gamosa” which was worn by the priests

and the disciples around the neck.

•  We also went to a house where we met a

lady and her daughter-in-law and came to

know that the skill sets and techniques of

handloom are passed on to the younger

generation. Also the handloom products

at the place are mostly used for self-

consumption purposes. Any extra

 production is sold to the nearby market at

a minimal price.

DAY-3

JORHAT 

•  After having our lunch at saffron hotel, we visited a shop where we met a lady who was a handloom

weaver. He told us that there is an excess demand and a very minimal supply in the market.

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DAY-4

KAZIRANGA

•  Teachers arranged a Bihu dance performance for us

given by some local trained dancers to make us feel

more connected to the place and tradition of Assam.

On interviewing them, we learnt about the silk ‘mekhla

sadar’ worn by them and its importance in the danceform.

DAY-5

TEZPUR

•  We first visited the Tezpur University where we were addressed by the registrar, the placement officer

and other officials of the college.

•  One of our members asked a question whether there are any courses in the university related to the

handloom designing or textiles

• 

The University is looking for introducing specialization courses soon in the field of handloom.

•  We interacted with an Assamese student over there to know whether the modern generation is

interested in handlooms or not.

•  The findings were as such- they said that they wear silk sarees or Kurtis on occasions only because

they are very expensive and also they cannot wear it in daily use as it cannot be washed every day

 because the cloth is such that it will get spoiled if you wash them every day.

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DAY-6

GUWAHATI

•  We were given a news that we won’t be able to visit sualkuchi, the silk village of Assam where the

epicenter of our project was located.

•  We changed our research methodology from taking surveys physically to gathering information on

call.

•  We did a lot many calls to support our research work and complete our stage 2 of finding the ground

reality statistics and comparing it with the research data we found on the internet.

INFORMATION GATHERED 

SOURCE 

STATISTICS (Source: Mr . Hi ralal Kali ta: Head of Al l I ndia Handloom Cooperative Society)  

  There are a total of 5672 silk handlooms in sualkuchi.

•  There are 3393 mulberry silk handlooms.

• 

There are only 93 looms based on muga silk.

•  There are 93 makela sadar looms.

•  There are 1896 pafar looms in sualkuchi.

PROBLEMS FACED

1.  Unavailability of raw material at affordable price leading to greater prices and lower profit margin

2.  Unavailability of skilled labor

3.  Unawareness among the producers, retailers as well as the consumers about the silk mark.

42

TELEPHONIC

INTERVIEWS

10 SURVEYS

27 FIELD

INTERVIEWS

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4.  There is lack of a marketing platform.

5.  A very wide market remains untapped

6. 

Financial weakness is there since the Government schemes are not implemented

7.  Loans are not readily available since there are no proper bank accounts

OPPORTUNITIES IDENTIFIED FOR FURTHER PROPOSALS

•  Bank accounts of retailers and the heads of manufacturing department are available

•  There is an upcoming trend of internet in the area

 

Product diversification

•  Design development

•  Scope for technology development

•  Globalization 

During our research work we also came across some success stories of people which helped us to base

our proposals and played a significant part in moulding our project.

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SUCCESS STORIES 

1) 

Story of jaishree Mohento

She owns a silk factory. She produces mekhla sadar,saree, muga silk, masa suta . She sells her stock and

inventory in the local market of Morigaon district which is near tezpur. She performs a B2C selling model

where things are sold to the customers directly via shops or through their own housing shop. She purchasesthe raw materials through local wholesalers from the nearby marketplaces. She claimed that her design is

unique and different from that of the weavers in the silk village of Assam i.e., sualkuchi, which is situated

near Guwahati. She started with this business 9 years ago with only 2 looms and sold all of her produce to

the big wholesalers leading to a convincing start-up. Now, she owns 10 looms and is able to sell all her

 produce to the regular customers without even visiting the marketplace. Most of her customers are in Assam

state and constitutes of a diverse potential market. Customers themselves approach her with different

designs and stylesheets which they want to wear and the product is delivered to them within 1.5 months.

She agreed upon the fact that she should also sell her product outside Assam but her production capacity is

restricted due to some reasons. Some major reason is non- Availability of skilled labour, less number of

looms, limited space and lack of finances for expansion. Furthermore she explained that the weavers insualkuchi produce upto 100 units at a time whereas she produces only 2-3 units due to the above mentioned

reasons. She told that there is ample demand for her products but she is able to supply less than the required

level. Though she was aware of the fact that she can sell her products via e-commerce sites but explained the

reason of not doing so due to limited produce. However she is confident that she will extend her distribution

channels to internet related services such as e-commerce as soon as she owns 50 looms. She exclaimed that

although she has not sold her produce through internet still she has a global reach as customers from

countries like USA, England, etc, buy products from her. She even takes the advantage of social networking

apps on which she communicates her designs directly to the customers before the final order is made.

We asked her whether she has got any quality standard mark or silk mark from the government, she told us

that the she is in talks with ministry to get the quality mark or silk mark soon. On asking whether she gotany kind of help from the government, she replied initially the government did not provide any support to

her business but later her business grew and a person from the ministry analysed her work, she was provide

with HRID training.

She was also awarded chief minister award and various government schemes were provided to her. The

ministry has also made a documentary of her work and contribution to handloom industry

2)  Story of Hiralal kalita- Head of All India Handloom

Cooperative Society His company’s name is Harman fashion house. Founded at 1999, makela sadar was his first product. Hiralal

kalita at present have 10 handloom weavers working under him. His business is based on traditional designs

where in he manufactures makela sadar ,sarees, khadi cloth, mulberry silk and muga silk.

He has inherited the skills from his father and his designs are based on their ancestral history. He is currently

on a venture of surveying and documenting weavers of sualkuchi for a conference at tezpur university and

has been conducting this survey under tezpur university for a very long time.

Some of his findings are:-

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There are a total of 5672 silk handlooms in sualkuchi. There are 3393 mulberry silk handlooms. There are

only 93 looms based on muga silk. There are 93 makela sadar looms. There are 1896 pafar looms in

sualkuchi.

He told us that no weaver has a bank account there.

There are a few weavers but maximum of them are outstation weavers. People of sualkuchi know about

internet and are quiet aware about e-commerce and e-commercial markets.

There is a storehouse or a warehouse in construction.

According to Mr. kalita, internet age has just begun in sualkuchi and its just been a month for them. Selling

of their produce is done by showrooms and retail shops owned by him. Highest sale of the season occurs

 between Novembers to April of the year basically because this is the time when maximum of the foreigners

come for tourism. He is very satisfied and happy with his business prosperity and profit making. He told us

that the profit margins depend on quality. He has a handloom mark given to him by the handloom office. He

have achieved first prize in pure silk making. There is no need of any training programs for weavers as they

all use their paternal designs. He has showrooms at places like Mumbai, Delhi and Madras.

10,000-13,000 is the average amount of salary a typical weaver can earn monthy.

PROPOSAL 1: E-COMMERCE-FLIPKART PLANE-commerce is the buying and selling of goods and services over the internet. E-commerce is the integration

of World Wide Web and the commercial market sector of the society.

Need of Ecommerce in handloom industry

1)  To bridge geographical gap between the buyers and sellers.

2)  Matching demand and supply in the handloom industry.

3) 

To promote product diversification.4)  Wider reach of the product.

5)  Creating and Developing a brand

6)  Quality improvement through proper feedback

7)  Increased visibility of the product through online marketing

8) 

Increasing Brand Loyalty.

Problems faced in implementation of e commerce model in handloomindustry

1)  Limited internet access

2)  Low level of computer literacy

3)  Lack of financial inclusion

4)  Lack of awareness about ecommerce model

5) 

Resistance to change

a)  Traditional mind set

 b)  Avoid procedural delay

6) 

Lack of legal literacy

7)  Lack of business management skills

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8)  Gaps in the production cycle

Problems faced by handloom weavers while connecting their business with E-Commerce

1)  Flipkart demands their Brand Name to be preserved, and handloom weavers can hinder with their Brand by not

maintaining the product quality, lack in product creativity etc.

2)  Handloom weavers are not ready to face the loopholes in their production cycles which will be exposed through

flipkart’s huge  potential market demand. E.g. handloom weavers produce in gaps or sell their products in

seasons which is not a concept of e-commerce( 24*7 availability of commercial market )

3) 

Flipkart high quality expectations of fulfilling their potential customer’s needs by small scale handloom

weavers.

4)  Rigid Business policy of Flipkart.

5)  Lack of proper education both technical and business as being exposed to work in the very early stage of life.

In order to find the solutions of the above mentioned problems, we conducted a ground level research in different

parts of Assam and found out these possible solutions.

1)  Like Handloom weavers of Karnataka and Andhra Pradesh sell their handloom products to a cooperative fashionhouse or by making of clusters. This model can be replicated for the silk industry of Assam. It will eradicate the

 problem of uneven production capacity of handloom weavers of Assam.2)  Warehousing of silk handlooms and handloom products in the north-eastern region will eradicate the problemof season derived supply of handlooms.

3)  Due to lack of financial literacy in north east handloom cooperative fashion houses, a special technical teamknowing e-Banking, e-commerce will be deployed.

4)  To cater to the degree of flipkart’s Brand popularity and maintaining consistency in the quality of handloomsthrough flipkart.com, Quality Standard marks like Handloom mark, silk mark and GI mark can standardizequality.

5)  To widely provide internet connection in the village of sualkuchi, Wi-Fi systems should be installed in themarketplaces with a well-designed IT hub located at the place of the technical team that was deployed.

PROPOSAL 2: FASHION DESIGNING 

1. Capturing the uncaptured market  To bridge the gap between tradition and contemporary.

  To project tradition in a fashionable way to an uncaptured (unexplored) fashion-conscious market which is eager

to connect with Indian culture in a contemporary manner.

2. Design development  It has been observed that designs, traditions, culture and history are going hand in hand in the assam silk

handloom industry. The designs are dominated by traditional or religious symbols. For a local consumer (or an

aware person) the designs and motifs are pleasant. However, looking at the broad perspective, not all designs

are liked by all- since consumers vary in their needs and preferences. Some prefer bold designs; some are

inclined towards small but delicate designs. Hence, there is a need to not only preserve the traditional designs,

 but also to encourage the stakeholders to innovate newer designs to suit other segments of the market.

For example in West Bengal, some Bengali sarees have bigger and bolder designs depicting elephants, coconut

trees and other such images related to nature which the people from other parts of India might not prefer.

We had a talk with a renowned Fashion Designer, Ms. Sunita Shanker, who has worked a lot in promoting

assam silk and projecting it in a fashionable way. According to her, certain religious designs (or religious

connections) can be removed from the mainstream commercial products such that there is a better designdevelopment without harming the religious sentiments of the people. She said the designs of  ghamosas can be

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used to make newer products like pajamas for ladies and other trendier options. However, care must be taken

to be aware about the designs- whether it has a religious significance or not.

3. Product diversification   Need for product development and product diversification in order to match the era of changing tastes &

 preferences; and globalization.

 

 Need to inculcate a parallel line of products to suit the changing needs and match the demands of a youngermarket.

  Presently, the product lines include mekhela chador   (pronounced as sador),  ghamosa, sari, shawls, scarfs

(stoles), rumaal which have been prevalent since ancient times. There is a need to incorporate modern versions

of products to suit the changing market needs- for example- kurtis, salwar kameez, tops, hand bags etc. the

logic behind this is simple, i.e., any non-assamese person would not be comfortable wearing a mekhela sador.

He or she would be willing to buy the speciality of assam- its famous silk products- but in a form they prefer

the most. Hence with changing times, additional product lines are desired.