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Kashmiri Carpets Fort of the Indian oriental carpets and rugs

Presented by : Aditi Bhatt

C 2 SIMS

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CARPET INDUSTRY OF INDIA

Indian Handmade Carpet Industry is ranked No. 1 in the international market ,market share of 35% of total world import of Handmade Carpets, Employs over 2 million rural workers.

Export oriented , 1215 carpet manufacturing units recorded and of that 190 are in the organized sector and the rest are in small scale industry sector.

Though it experienced a major set back during 1996 -2000 due to the involvement of the child labour, it has over come the jolt by implying special measures like "rugmark" and "kaaleen " labels that ensure the non involvement of child labour.

“Hand made carpet of Bhadohi” have been granted the Geographical Indication (G.I.).

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QUALITY STANDARDS

Kaleen- According to CEPC promotional material, the label signifies that “the user is abiding by the code of conduct adopted by the Carpet Export Promotion Council for the eradication of child labour.

Step- Ensure market opportunities and transparent business,better working condition and remunerations for adult workers.

Care and fair-To ensure the medical, educational and career opportunistic needs of the labours and elimination of child labour.

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CARPET BELTS IN INDIA Bhadohi-

Mirzapur, UP

Market share 90%Medium Quality- 60-70 Knots

Agra Belt, UP

Medium quality, elegant and simple floral patterns

Jaipur- Bikaner Belt, RajasthanMedium quality, 80-120

knots, known for innovativeness

Panipat Belt in Haryana

Majorly produce Durries, superior quality for rough

use

Kashmir Belt

Hand knotted woollen and silk carpets, High quality,

324-600knots

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MAJOR CARPETS OF INDIA

Hand Knotted Woollen Carpets

Hand Woven Woollen Carpets

Hand Tufted Woolen Carpets

Handmade Woollen Dhurries

Pure Silk Carpets

Staple or Synthetic Carpets

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INTERNATIONAL MARKET ANALYSIS

31%

24%

21%

14%

10%

Market Share(%)

USAGermanyUnited KingdomCanada France

Hand knotted woollen carpets

Hand tufted woollen carpets

Hand woven woollen carpets

Handmade woollen carpets

Pure silk carpets

Staple or synthetic carpets

0 2,000,000 4,000,000 6,000,000

1,443,432

5,144,650

1,100,424

266,286

6,471

78,201

Total quantity

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EXPORT ANALYSIS OF INDIAN CARPETSCarpet Type Total

Exported Worth

Export Recipient Country

Hand Knotted Woollen Carpets

USD 120,006,571

US - $34,564,724, Followed by Germany and Turkey $31,648,155 and $ 19,891,092

Hand Tufted Woollen Carpets

USD 133,052,946

US- $107,608,090 ,followed by UAE and UK $6,969,663 and $5,631,964

Hand Woven Woollen Carpets

USD 30,848,584

US -13,114,276 , followed by Australia and United kingdom $3,233,748 and $3,037,270

Handmade Woollen Carpets

USD 8,414,698

UK- $1,845,397, followed by US and Germany $1,759,255 and $1,267,864

Pure Silk Carpets USD 1,847,319

Russia- $748,311, followed by US and Germany 326,537 and USD 231,448

Staple or Synthetic Carpets

USD 4280711US- USD 814,155, followed by Turkey and UAE USD 765,326 and USD 615,944

INFERENCE:

• The Data on the Export carpets shows that United States of America tops the list as the maximum importer of Carpets made in India.

• Kashmir being the major manufacturer of Carpets made of pure Silk lags behind because of the high cost of production .

• Russia is the highest importer of Silk Carpets. Hence, Carpet export promotion corporation must lay more importance on this area to increase the total export .

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COMPETITOR ANALYSIS

Chinese carpets are emerging as the biggest threat in terms of pricing and volumes

Owing to cheap prices of the foreign carpets from Turkey, Belgium and China, the demand for the Kashmiri carpets have decreased by 20 per cent in the domestic market

Prices per square feet of Kashmiri carpet range from Rs 1000 to Rs 2000 while cost of Chinese carpets range from Rs150 to 400 per square feet

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Strengths1.Low labour cost and innovative carpet designs2. Low cost raw material, Availability of skilled labours3. Made up of Pure silk and wool, Hang Woven4. High durability due to its high knottage which makes these carpets stiffer and firmer

Weaknesses 1. High interest rates as compared to neighbouring countries

2. Under-financed handicraft producers and Traders/Exporters3. Cheap prices of foreign carpets 4. Channels for local selling and marketing is very low5. Highly unorganised sector- Access to local as well as foreign customers should be simple and easy

Opportunity1.Improving the productivity and quality of raw materials at reasonable price

2. Improvement in the R&D for improvement of fibre quality

3. Involve US importers, enhance the scope through road shows ,fairs & exhibitions.

5. Tie up with wal-mart and other retailer to have a huge customer base

Threats1. Artisans are forced to quit this industry due to recession

2. Low end carpets, made in China is driving the market and the growth of the carpet industry

3. Stiff competition from Pakistan and China

4. Child Labour has made carpet industry a defamed industry

SWOT

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PRESENT SCENARIO

• Largest financial institution in Kashmir announced an interest-free and mortgage-free 18-month bailout package for carpet industry artisans

• The competition within and between the producing countries have depressed export prices, while competition between importers and retailers have cut into trade margins

• World flooring and carpet demand will rise 4.9 percent yearly to 18.6 billion square meters in 2016. Hence, India must concentrate more on the exports of Kashmiri carpets as it is predicted that the Asia- Pacific region will see the most rapid growth

• Sellers/Traders are into the Profits of the Manufacturers and Artisans

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SUGGESTIONS • GOVERNMENT MUST COME FORWARD TO ASSIST THE INDUSTRY WITH SUBSIDIES TO MAKE

CARPET COMPETITIVE IN INTERNATIONAL MARKET

• REMUNERATION TO WEAVERS AND ARTISANS SHOULD BE SUITABLY INCREASED TO BRING IT TO A LEVEL HIGHER THAN MNEREGA WAGES

• MDA ASSISTANCE SHOULD BE MADE AVAILABLE FOR CARPET EXPORTERS TO UNDERTAKE OVERSEAS VISITS FOR THE PURPOSE OF MARKETING, PARTICULARLY IN NON-TRADITIONAL AND DEVELOPING MARKETS

• PUBLIC- PRIVATE PARTNERSHIP TO IMPROVE INFRASTRUCTURE, POWER SUPPLY ETC.

• ENCOURAGING ORGANISATIONS LIKE CEPC, AICMA TO PROMOTE INDIAN CARPET BY INCREASING THE DEMAND

• INNOVATIVE PRODUCTS RANGE WITH LOWER VOLUME COULD BE A SUCCESS MANTRA FOR INDIAN CARPET INDUSTRY -REGULAR RESEARCH & DEVELOPMENT, PROPER TRAINING TO THE ARTISANS IS REQUIRED

• AGGRESSIVE MARKETING IN EMERGING MARKETS IN DEVELOPING COUNTRIES AND CREATING A STRONG HOLD IN THE DOMINATING BUYERS LIKE USA & GERMANY

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