Kashmiri Carpet Industry

By Shashank TripathiSymbiosis Institute of Management Studies

Preamble• Kashmiri carpets dates back from 1341-1385AD• The technology came from Persia and since then

it has been transferred from fathers to their Son’s• Over all Industry worth is Rs.5000 Cr. • The Major Centers for Carpet Manufacturing in

India are Kashmir belt, Haryana belt, Panipat belt, Agra belt and Bhadohi belt

• Due to stiff domestic and International competition this art is dying

Indian Carpet Industry• Indian carpet industry is majorly export based USA &

Germany being the main importer• Indian home made carpet Industry is ranked no. 1 in

the international market having 35% market share• Total of 1215 manufacturing units , out of which 190 are

in the organized sector and rest are small scale industry• It has seen two major set backs in the year 1996-2000

due to child labour involvement and recession in 2008• Most of the young generation is leaving this art due

less wages

Indian Carpet Industry Contd.• Seven types of hand-made carpets are produced in the country:

– Hand-knotted woollen carpets– Tufted woollen carpets– Gabbe woollen carpets– Hand-made woollen dhurries– Pure silk carpets– Staple/synthetic carpets– Chain stitch rugs

• The Apex body which helps for the Export of Carpets is CEPC (Carpet Export Promotion Council)

• Kaleen, Care and Fair, STEP are the few initiatives for the standardization of the carpet industry

Competition• Domestic Competition from Badohi, Agra,

Panipath and other Belts• International Market

– China – Produces at Low manufacturing cost– Iran – Ranked 3rd as an Ideal supplier for carpets by OTF,

It has a reputation of Supply driven producer– Pakistan- Shares the same technology an keeps direct

contact with the end customer– Afghanistan – Producers from there are forming direct

link with the customers

Solution• Govt. Policies

– Subsidies on Bank Loans– Lower Interest rates on raw material– Establishment of R&D centers for innovative production

process– Geographical Indicators for Kashmiri carpets– Allow FDI in the sector– Establishment of manufacturing centers in USA and

Germany– Increase min. wage cap for this Industry to attract young

generation

Solution Contd.• Marketing and Distribution Channel– Tie ups with e- retailers like Amzon, Flipkart etc.– Promote the USP of Kashmiri carpet i.e high knottage

strength(800-2500 per square inch)– Come up with new low cost products to increase the

market reach– Automation in the low cost products– Govt. owned hubs for better pricing to manufacturer and

customers

SWOTThreats1. Stiff competition from neighboring

country2. Translation of skills to young

generation3. Huge cost of raw material

Strength1. Huge Domestic and

International Market potential

2. Cheap and trained labour3. Established brand name

Opportunity1. New low cost Products2. Use of E-commerce distribution

channel3. Tourism development of J & K

Weakness1. Infrastructure2. Unorganized manufacturing sector3. Dying interest among youths4. Lack of global exposure

Thank you