Table of contents

Chapter no: 1 Particulars Primary Objective Secondary Objective Introduction Economic Activities Products available in the cluster

Description of present business process and supply chain Value Chain Analysis Intervention by NGOs and Govt. in the Burdhwan District Problem identification SWOT analysis Conclusion References

4 5

6 7 8 9

Objectives
O Primary objective:

To gain insight through a diagnostic study into specialties, resources, environment, demography and specific realities of the targeted craft cluster
O Secondary objectives:

To study the existing and potential supply chain formats

of the clusters To understand the value chain analysis To be able to find out strength, weakness, opportunity and threat in context of the targeted craft cluster

Sodepur
O It is a part of Panihati Municipality under Barrackpore

sub-division and North 24 Parganas district of the state of West Bengal.

O Economic activities:

It is the hometown of great artisans of Indian handicraft,

The leather craft is also the only source of income for

many residence. Other occupation is agriculture

Product of the cluster

Problem facing
Raw Material
O Absence of Raw

Machinery and Production

O Low Productivity

Material Dealer in the Cluster causes High Inventory requirement O Intermediary dealers have monopolistic control over the Raw materials O High Working Capital Procuring Raw Material from Tamil Nadu

O Inconsistent Finishing
O Low Quality of Raw

Material O Lack of Knowledge and Awareness O Major Operations are Manual O Lack of Application of Sophisticated Machinery

O Lack of Order from

Exporters O Low Participation in Local Market O Absence of Direct Export Initiative O Inadequate Exploring Alternative Channels of Marketing like trade fairs Products & Marketing

O Minimum Machinery

Application in design O Lack of Knowledge in design diversification Design & Production

O Man power requirement Inadequate skilled manpower Low Productivity Low Wage Rate

Remained a Traditional Family Business

Lack of Knowledge and Awareness

Finance and working capital:

High Working Capital Requirement High Cost of Raw Material Shortage of finance Background of the Entrepreneurs and their Enterprises

MarketTechnologyInputInnovative capability

Skill Business environment Market Input available-

S T
Competition Skill base Financial constraint-

O
MarketTechnologyInput availableInnovative capability

Source: Final DSR, leather cluster- kolkata

Source: Final DSR, leather cluster- kolkata

Reasons for adapting the potential supply chain format

O Better support to the artisans

O Better financial help

O Larger exposure of the market demand O Better supply chain O More revenue

Behala
Situated in South West Kolkata officially known as South Suburban Municipality until it was merged with the Kolkata Municipal Corporation (KMC) on January, 1984.

O Economic activities:
Stores: Clothes, jeweler, electronic items, sports

goods, books and footwear can be found in stores from Taratala to Manton. Hawker: Shopping malls and factory outlet

Products:

Behala in West Bengal is known for Tangail and Baluchari Sarees.

Absence of support system

City Economy

Problem facing

Market Dynamics

Financial facility

Brand equity Product diversification Linkage with supportive Institute, Absence of marketing platform of state apex body Infrastructure Quality of dye

Scope of product diversification Website for cluster catalogue Large volume of buyers- buying house, ITC etc.

Emergence of power loom competition

Existing format in supply chain

Source: http://nopr.Niscair.Res.In/bitstream/123456789/6270/1/IJT K%208(4)%20502-509.Pdf

VALUE CHAIN ANALYSIS

SOURCE:

Burdhman district

O Economic activities:
Agricultural based economy Known for hand-woven fabrics, textiles and sarees, Cooperative, consortium encourages waiving, Many people specially women are placed at the cottage

industry.

Products :

dupattas, stoles, sarees and dress materials.

Labor problem

competition

Problem facing
Delay in supply raw material

Quality of raw material

-Product development -Human resources -Financial support

-Raw material supply -absence of alternative marketing channel -labor problem

S O
-Scope for product diversification -exposure visit - Geographical Indication

W T

- Competition
-decline demand
- Increase demand for low cost power loom products

Existing format of the supply chain Existing format in supply chain

Source:: http://nopr.niscair.res.in/bitstream/123456789/6270/1/IJTK%208(4)%20502-509.pdf

O
O O O O

Removal of the mahajan system Better revenue Organized supply chain format Artisans gain better knowledge A consortium gives a better exposure and helps the artisans in gaining the raw materials at a lower cost. It helps in getting them a better exposure too

REASONS FOR IMPLEMENTING THIS PROTENTIAL FORMAT

Value chain analysis

Source:

NHDC
O National Handloom Development Corporation Limited

(NHDC) was set up in February 1983 as a Public Sector Undertaking by the Government of India.
O MISSION : To be a National Level Agency for the

promotion and development of the Handloom Sector.

O OBJECTIVES:

1. To carry on in India or elsewhere, the business of buying, stocking, marketing or otherwise controlling the distribution of all types of yarn for the benefit of handloom sector. 2. To procure, stock distribute and sell all types of raw materials, dyes & chemicals needed by the handloom sector.

Role of NHDC IN SUPPLY CHAIN:

O Specialty of cluster. Objective is to reduce

raw material problem, now the 60% supply through Govt. contribution and 40% cluster by consortium.

O It is a consortium.

Burdhaman Handlooms developers and producers private ltd,

O No of members are at least 10 to make the facility

center, with facility centre consortium form.

O One cluster is made of 150 people, consists of 200*10

= 2000 artisans work on daily basis.

O Finish product traditional tangi sarees. O Main season for the product- 3-4 months before Durga

Puja upto 1 month after puja. Other seasons of demand are local and international fairs for marketing, Bengali new year.

1.Gets the order from Tantuja and raw material from yarn bank , NHDC.

Getting the order

2. Distribute the order to common facility centers, 3. Common facility centers distribute the order to self improved waivers.

Getting the finish product

Distributed to Tantuja, and sometimes to NHDC

Gram kalan gram samabay samity, samudragar

O It is a cooperative,
O No of members are: 394. Product line:

saree 100% cotton, tangai, Stoll is only for export.

O Role of the cooperation are: business

performance, services to the members, planning for future way of extension, to help earning of waivers.

Supply chain Raw material : source from NHDC, at the rate of 6 % reimbursement duty benefit on tax. Problem facing in raw material: quality, delay in supply of raw material. If raw material collect from other source they have to pay much more than NHDC charges.
O Getting duty drawback in distribution

O It is a part of Panihati Municipality under Barrackpore

sub-division and North 24 Parganas district of the state of West Bengal.

O Economic activities:

It is the hometown of great artisans of Indian handicraft,

The leather craft is also the only source of income for

many residence. Other occupation is agriculture

Product of the cluster

Problem facing
Raw Material
O Absence of Raw

Machinery and Production

O Low Productivity

Material Dealer in the Cluster causes High Inventory requirement O Intermediary dealers have monopolistic control over the Raw materials O High Working Capital Procuring Raw Material from Tamil Nadu

O Inconsistent Finishing
O Low Quality of Raw

Material O Lack of Knowledge and Awareness O Major Operations are Manual O Lack of Application of Sophisticated Machinery

O Lack of Order from

Exporters O Low Participation in Local Market O Absence of Direct Export Initiative O Inadequate Exploring Alternative Channels of Marketing like trade fairs Products & Marketing

O Minimum Machinery

Application in design O Lack of Knowledge in design diversification Design & Production

O Man power requirement Inadequate skilled manpower Low Productivity Low Wage Rate

Remained a Traditional Family Business

Lack of Knowledge and Awareness

Finance and working capital:

High Working Capital Requirement High Cost of Raw Material Shortage of finance Background of the Entrepreneurs and their Enterprises

MarketTechnologyInputInnovative capability

Skill Business environment Market Input available-

S T
Competition Skill base Financial constraint-

O
MarketTechnologyInput availableInnovative capability

Source:Final DSR, leather cluster-kolkata

Source:Final DSR, leather cluster-kolkata

Reasons for applying the potential supply chain format:

O
O O O O

Removal of the mahajan system Better revenue Organized supply chain format Artisans gain better knowledge A consortium gives a better exposure and helps the artisans in gaining the raw materials at a lower cost. It helps in getting them a better exposure too

Case study A diagonostic report on cluster development programme of shantipur handloom cluster, nadia, west bengal

HIGHLIGHTS OF CASE STUDY

Introduction of shantipur cluster
Small town of nadia district Comes under ranaghat sub division Known for jacquard sarees and dhoti Exporter since 17th century Gangajamuna, nilambri, rajmahal

Advantages of cooperative model over traditional model

O More integrated process flow
O Better organisational infrastructure O Cost effective technology O Lack of direct participation of share holder

in administration

conclusion

O The craft cluster study has helped us in gaining

immense knowledge about the various Indian crafts and the working conditions of our craftsmen.
O We were able to interpret various problems faced by

the people working in this field. Personal interviews helped us understand the social, economical and cultural variations. The craft industry is on its verge of extinction due to various factors. People are oriented towards machine made products as compared to hand made items. Other than that, the workers are payed very less wages. We are of firm belief that the government should take quick action in stabilizing the condition and help the workers financially.

bibliography
O Journals O DIAGNOSTIC STUDY

REPORTFORLEATHER GOODS CLUSTER, SANTINIKETAN O Diagnostic Study Report onImplementing BDS in theKolkata Leather Cluster O Diagnostic Study of the Handloom Cluster of Burdhwan District, Under the IHDC Scheme
O Websites O http://nopr.niscair.res.in/bitstream/1234567

89/6270/1/IJTK%208(4)%20502-509.pdf