1

WELCOME KHADI : A HAND SPUN AND HAND WOVEN

CLOTHESAND

VILLAGE INDUSTRIES

KHADI AND VILLAGE INDUSTRIES COMMISSIONMICRO, SMALL AND MEDIUM ENTERPRISES

(GOVT. OF INDIA)3, GRAMODAYA, IRLA ROAD, VILE PARLE (W), MUMBAI-56

2

Overview of Khadi

3

Overview of Khadi

Khadi’ is the proud legacy of the Father of the Nation.Khadi is ethical as well as ethnic. The USP of Khadi is that

It is natural, hand crafted, bio-degradable, non-exploitive and having zero carbon footprint.

KVIC was established to leverage these unique characteristics of Khadi for economic up-liftment of rural artisans.

4

The assistances provided through various schemes of KVIC are enabling Khadi institutions in providing employment opportunities to over one million traditional artisans living in the rural areas.

Around 80 % of Khadi artisans are women and every third Khadi artisan belongs to socially backward communities.

Overview of Khadi

5

Overview of Khadi

Performance - last 5 years

Year

Production Sales(Rs.in crore)

Emp.(lakh

persons)

Earnings

(Rs. in crore)

Qty.(in million sq.mtrs.)

Value(Rs.in crore)

2010-11 85.95 673.01 917.26 10.15 436.572011-12 88.73 716.98 967.87 10.45 449.032012-13 90.98 761.93 1021.56 10.71 459.182013-14 93.25 811.08 1081.04 10.98 469.562014-15 95.19 879.98 1170.38 11.06 519.20

6

Status of Khadi SectorNumber of KIs 2,223No. of Weavers 1.42 lakh personsNo. of Spinners 8.62 lakh personsNo. of Charkhas 9.60 lakh approx.No. of Looms 1.51 lakh approx.No. of artisans covered under Janashree Bima Yojana 2.93 lakh artisans coveredNo. of artisans opened bank accounts 3.42 lakh artisansNo. of outlets 7050Central Sliver Plants (CSPs) 6

Overview of Khadi Contd.

7

Location Production SalesQty. Value Qty. Value

Kuttur, Kerala 2.86 620.86 297274 652.37Chitradurga, Karnataka 7.15 1291.35 646949 1166.27Sehore, Madhya Pradesh 8.08 1288.63 780844 1209.24Raebareli, Uttar Pradesh 4.45 657.34 412695 628.83Etah, Uttar Pradesh 3.05 551.41 287739 518.01Hajipur, Bihar 1.36 306.74 97372 224.51

Total 26.95 4716.33 2522873 4399.23

Sliver/roving production and sales during 2014-15 (Qty. in lakh kg., Value: Rs. in lakh)

Raw Material Godown Facilities : CSP, Sehore: Dausa (Rajasthan), Surendranagar (Gujarat)CSP, Etah: Bijnour (UP), Kanhewali (UK), Kurukshetra (Haryana)CSP, Chitradurga: Metpally (AP)CSP, Kuttur: Trivandrum (Kerala), Murshidabad (West Bengal)

Overview of Khadi

8

New Initiatives

9

New InitiativesInitiatives for enhancing production of KhadiRaw material supply and management :

KIs have been advised to procure their required raw material from KVIC’s Departmental CSPs only and approach outside agency if the raw material required by them is not produced by CSPs.

KVIC has advised the Project Managers to provide sliver/roving as per the requirement schedule of KIs. The CSPs are now running in three shifts.

10

Higher capacity utilization of CSPs have brought down the price of roving about 8 to 10%.

KVIC have requested Ministry to approve a proposal for refurbishment of CSPs out of KRDP fund. The refurbishment of the plants will increase their installed capacity and also bring down conversion charges further in the range of 10 to 15%.

11

New Initiatives

Contd.

Funding - KVIC has simplified the system of Khadi budgeting to

assign target of production and sales to the institution. The State offices have been authorized to assign the Annual Budget and Central office only ratifies their action. This system has cut down the time lag in budgeting.

The system is being further simplified giving boost to the KIs in doubling Khadi production, utilizing their resources to the maximum extent.

Pro-active arrangement has been made in providing khadi plan fund and KVIC in turn released the interest subsidy portion of the bank finance availed by KIs timely.

12

New InitiativesContd.

Khadi Marketing -Earlier, Khadi Institutions were pricing their product as per cost chart. The cost chart method was coming in the way of market linked pricing of product to earn requisite surplus for sustainability of khadi activities.

KVIC had issued guidelines allowing institutions for flexible pricing of their product at all level so that the institution can earn sufficient surplus to enhance earning of their artisans as much as possible. Youth Centric Khadi apparel such as Denim Jeans, Jackets, Skirts, T-shirts etc. developed. Artisans of Khadi Institutions are being trained to further increase in the volume of such products.

13

New InitiativesContd.Khadi Marketing -

KVIC have advised khadi institutions to take care about the up-keeping of their bhandars. KVIC is also making arrangement to institute award system to motivate khadi institutions in their endeavor.KVIC is working with the reputed retailers to offer suitable platform to khadi institution for retailing their products through digital marketing.KVIC have also taken up ambitious programme for mapping of Khadi and Khadi products throughout India which will enable necessary information about availability of product both in quality and quantity. KVIC have issued a format seeking information from field offices and KIs.

14

New Initiatives Contd.

Implementation of Khadi Mark -KVIC have introduced ‘Khadi Mark’ wherein producers of Khadi has to obtain Khadi Mark Certificate for attaching Khadi Mark label with the Khadi and Khadi product to be sold by them in the market. KVIC have prescribed a one page application form, to facilitate KIs to apply easily.

So far, 1244 KIs have obtained Khadi Mark and Khadi Mark Labels are helping them in better marketing of their products.

15

Challenges

CHALLENGES Decentralized sector and lack of adequate database

relating to Khadi artisans, spinners, weavers etc.

Lack of uniformity for institutional/bulk supply.

Low wages and low productivity discouraging new entrants to Khadi

16

CHALLENGESAbsence of market intelligence and information relating to latest fashion trend prevalent in domestic and international markets.

Opening up of market and global competition in the domestic market offering tough competition to Khadi & Village Industries products.

17

PROVIDING GENUINE KHADI TO CUSTOMER

Many shops sell textile attaching name Khadi while those are not hand spun hand woven.

Earlier KVIC did not have any regulatory power to restrain those and in many cities such shops mushroomed.

This situation has been eating away the market of genuine Khadi and its share is sizable.

18

PROVIDING GENUINE KHADI TO CUSTOMER

KVIC under KRDP arranged implementation of Khadi Mark Regulations 2013, which provides every trader/seller of Khadi should obtain Khadi Mark and attach Khadi Mark label on all Khadi products.

Stringent action needs to be initiated against sales outlets or commercial establishments that sale spurious khadi.

KVIC is making all efforts to plug sale of spurious textile in the name of Khadi.

19

20

Road Ahead

ROAD AHEAD

Doubling Khadi production and sales, doubling earning of spinners and weavers.

Modernization of existing “Khadi Retail Outlets”. 

Opening of ten new ‘Khadi Retail Outlets’ across the country.

Display of large size ‘Charkha’ at Terminal -3 of New Delhi Airport to inculcate the ideology of Khadi.

ROAD AHEAD Opening of ‘Khadi Retail Outlets’ at New Delhi and Mumbai

Airports.

Strengthening of Government Supply.

Creation of Data base of KIs, artisans and all sales outlets.

Coverage of all eligible Khadi artisans under social security benefit schemes viz. Prime Minister Suraksha Bima Yojana (PMSBY) & Prime Minister Jeevan Jyoti Bima Yojana (PMJJBY).

ROAD AHEAD Launching of e-commerce and introduction of franchisee

scheme to market KVI products.

Development of Khadi brand and engage professional consultant to create and promote brand publicity.

Develop uniform eco-friendly packaging for KVI products with logo and specified colour, size, etc.

Development of solar charkha.

THANK YOU

24