Bhadoi DS

DRAFT DIAGNOSTIC STUDY REPORT
FLOOR COVERINGS CLUSTER BHADOHI, UP

SUBMITTED TO
PMD DIVISION SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

BY
HYDERABAD JULY 2009
CONTENTS
Chapter Executive Summary Introduction Background Methodology Framework The Cluster Production process History of the Cluster International, National Scenario and Benchmark Cluster Vital Statistics, Business Development Service(BDS) Providers , Who Does Who Pays (WDWP) Matrix Analysis Value Chain Analysis BDS Analysis Analysis of Business Operation (AOBO) and Pressure Points Derivation Strengths Weaknesses Opportunities and Threats(SWOT) Cluster Map Vision of the cluster Long & Short run objectives Suggestive Action Plan Annexures Location Map Process Flow Chart Proposed Interventions with Tentative Time lines List of Respondents Questionnaires Contents Page No i - iv 13 1 1 4-13 4 5 6 8 11 14-35 14 15 28 36-44 36 40 42 42 43
1.0 1.1 1.2 2.0 2.1 2.2 2.3 2.4 2.5 3.0 3.1 3.2 3.3 4.0 4.1 4.2 4.3 4.4 4.5 1 2 2 3 4
Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi
List of abbreviations
APITCO NABARD AICMA AICYSDA BDS BIDA BoB BMOs BHU CEPC CC CAD CFC C&F DFID DSR DHs Diz DIC DC-H EOR ETP EDP FI HO HDFC HRD IICT IDBI ICICI ICAI IHCDP IREDA IIT KVIC M&E MSME-DI MOU MAFs MT MSE-CDP M&SEC MAFs M/Cs NGO NIFT NID PCB
: Andhra Pradesh Industrial & Technical Consultancy Organization : National Bank for Agriculture and Rural Development : All India Carpet Manufacturers Association : All India Carpet Yarn Spinners and Dealers Association : Business Development Service : Bhadohi Industrial Development Authority : Bank Of Baroda : Business Management Organizations : Banaras Hindu University : Carpet Export Promotion Council : Cash Credit limits : Computer Aided Designing : Common Facility Center : Carrying and Forwarding : Department For International Development : Diagnostic Study Report : Dye Houses : Designers : District Industries Center : Development Commissioner, Handicrafts : End of Project Report : Effluent Treatment Plant : Entrepreneurship Development Programme : Financial Institutions : Head Office : Housing Development Finance Corporation : Human Resource Development : Indian Institute of Carpet Technology : Industrial Development Bank of India : Industrial Credit Investment Corporation of India : Indian Chartered Accountancy Institute : Integrated Handloom Cluster Development Progrmme : Indian Renewable Energy Development Agency : Indian Institute of Technology : Khadi & Village Industries Commission : Monitoring and Evaluation : Micro Small and Medium Enterprises-Development Institute : Memorandum of Understanding : Manufacturing Export Firms : Metric Ton : Micro Small Enterprises-Cluster Development Programme : Marketing and Service Extension Center : Merchant Export Firms : Machine suppliers : Non Government Organization : National Institute of Fashion Technology : National Institute of Designing : Pollution Control Board PMD-Division
PMRY : Prime Minister Rojgar Yojna PFs : Principal Firms PMEGP : Prime Minister Employment Guarantee Programme PMD : Project Management Division PBDs : Private BDS providers QC : Quality Control R&D : Research and Development RMs : Raw Material suppliers SSI : Small Scale Industries SWOT : Strengths, Weaknesses, Opportunities and Threats SMEs : Small & Micro Enterprises SPV : Special Purpose Vehicle SME : Small and Medium Enterprises SIDBI : Small Industries Development Bank of India TMFs : Tiny Manufacturing Firms TDS : Total Dissolved Solid TC : Textile Committee TETC : Technical Education and Training Centers USD : United State Dollar US : United State USA : United State of America UK : United Kingdom UCO Bank : United Commercial Bank UNIDO : United Nations Industrial Development Organization WSC : Weavers Service Center WDWP Matrix: Who Does Who Pays Matrix
PMD-Division
Executive Summary
With a view to enable BDS market development and make Indian SMEs to enhance their competitiveness, SIDBI has initiated project to provide need-based and demand driven BDS in the areas of technology, markets, skills, ICT, energy and environment etc. in select clusters. The project funded jointly by World Bank, DFID, KFW and GTZ, aims at providing BDS through professional organisations with proven track record in extending demand driven BDS and implementing cluster development interventions. APITCO has been chosen by SIDBI-PMD Division as the facilitating agency for the development BDS markets in Bhadohi floor coverings cluster. The basic objective of conducting diagnostic study is to identify the key issues and interventions required in areas of process, technology, finance and marketing with specific reference to BDS.
As a part of pre-implementation phase the core team of APITCO, comprising of cluster manager, network expert and subject expert, besides HO team officials, have conducted a detailed diagnostic survey in Bhadohi cluster, through detailed questionnaire survey of core cluster firms and BDS providers, interviews with support institutions and focus group discussions with associations, workers. The primary and secondary data thus collected was compiled and a comprehensive analysis was made regarding status of the cluster, BDS providers, key issues and required interventions. Based on the compiled data and analysis a draft DSR was thus prepared as per the specification given by Monitoring & Evaluation Agency which is to be submitted to SIDBI. Status of the Cluster The floor coverings cluster is mainly concentrated in Bhadohi and Mirzapur Districts of Uttar Pradesh. The type of firms in the cluster can be divided in to four categories viz. Merchant Export Firms (MEFs), Manufacturing Export Firms (MAFs) Tiny
Manufacturing Firms (TMFs) and weavers. Majority of the TMFs and weavers are operating on job work basis supplying to the MEFs.
PMD-Division
The snapshot of the Bhadohi cluster is given as below: Cluster Snapshot Parameter Spread of the Cluster (r) Total Units (Nos.) Manufacturing Export Firms (MAFs) Merchant Export Firms (MEFs) Tiny Manufacturing Firms(TMFs) Weavers Aggregate Employment (Nos.) Direct Indirect Aggregate Investments (Rs.Crores) Estimated Turnover (Rs.Crores) Product Mix Major Stakeholders 50 km (Bhadohi, Mirzapur Districts)
20 800 1000 290000
345000 30000 760 1480 Knotted(60%), Shaggy(10%), Tufted(25%) and Durries (5%) Merchant Export Firms Manufacturing Export Firms Tiny Manufacturing Firms Weavers/ Job Workers Government & support Institutions Raw material suppliers, M/C suppliers, Support Firms & Financial Institutions and bankers
Major BDS Providers
IICT, Designers, Dye Houses, Shipping Agents, Transporters, CAs, Testing Labs, NIFT, Training & Educational Institutions etc.
Overview of BDS Services The cluster firms need a range of BDS to enhance their operational efficiency, evolve appropriate product and process, process strategies and enhance collective competitive advantage. In the present setup, there are a number of BDS providers both private and institutional, who cater to the cluster requirements especially in the domains of product designing, knotting, and tufting. Nevertheless the range of services offered are stereo type and supply driven with little focus on innovation and customization. Further, the skill PMD-Division
ii
sets of the BDS providers are narrow, limited and out of time with the emerging requirements of the users. Some of the demand and supply side constraints are given as below: Demand side constraints Manufacturing firms are not in a position to afford the services Lack of information about the service providers Poor networks among the firms and weak associations resulting in lack of collective utilization of services Most of the firms do not foresee the value of the BDS services Awareness of buyers regarding technical BDS Complicated policies and procedures of banks and other FIs Most of the BDS providers are in contact with cluster firms through agents leading to poor direct linkage Supply side constraints Weak penetration due to poor marketing techniques Apprehensive about new markets like foray in to manufacturing firms Weak penetration of BDS promotion agencies like DC-H, Carpet training centre, CEPC due to poor awareness about their activities and schemes Limited capabilities to cater larger markets Key issues and suggested interventions Area/ Key Issues Suggested Interventions Raw Material Interactive meet with raw material suppliers for common procurement No direct linkage with woollen suppliers by majority of the firms Sensitization and formation of raw material Price fluctuations consortia Propagation of alternative raw materials like No collective purchase mechanism synthetic fiber, nylon acrylic and poly propylene Non availability of raw material on time through raw material suppliers and BIDA Technology Interactive meets with M/C suppliers Limited access to advanced technologies in Exposure visit to China & Iran weaving, Chemical & Mechanical Finishing Interface with technical experts Limited knowledge about the technological Technological demonstration of advanced Dyeing, advancements and processing techniques Finishing machines and broad looms Marketing Organising buyer seller meets Poor emphasis on domestic market Participation in international trade fairs with the help Exploitation by buying agents of CEPC Limited e-commerce by small exporters Participation in domestic exhibitions & trade fairs Creation of web portal & Web Directory Limited direct market linkages Sensitization to establish common display cum warehouse centre
PMD-Division
iii
Area/ Key Issues HRD lack of awareness on legal/regulatory issues lack of Training facilities for weavers Limited entrepreneurial capabilities
Quality Lack of awareness on quality control in dyeing, weaving and finishing Limited awareness on quality certification Finance Inadequate/ lack of working capital finance High labour advance payments Lack of awareness on Government Schemes like PMEGP, Scholarships for weaver families etc Energy & Environment Irregular power supply Poor utilization of generators leading to high fuel consumption High pollution levels in Dye Houses utilised by cluster firms Poor Ergonomics ICT Low computer literacy levels Lack of awareness on advanced design development software Associations Poor cohesiveness among association members Lack of association for TMFs/ weavers
Suggested Interventions Organising work shops on legal & regulatory norms Organising training programmes on advanced practices on weaving & finishing for weavers/ Skilled workers Sensitization programmes for establishment of training centre Conducting training programme for Women in Semimechanised Motorised ratt. Conducting EDP programmes through NGOs/ IICT/ MSME-DIs by promoting agencies like NABARD/ DCH Conducting awareness programmes on Quality control norms Piloting ISO certification in MEFs and MAFs Organising bankers meet with awareness on Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) of SIDBI and GoI Conducting loan melas Organising awareness programmes on Schemes promoted by SIDBI and other Government departments/ Ministries Awareness programmes on renewable energy systems Organising workshops on energy efficiency Conducting sensitizing programmes on pollution control Sensitization programmes on Ergonomics Piloting of upgradation of ergonomics in 10 TMFs Organising computer basic courses Organising training programmes on computer aided Design and Concept development Capacity building of associations by organising awareness work shops and seminars
PMD-Division
iv
Chapter 1 Introduction
1.1) Background
BDS markets in developing countries are mostly underdeveloped, and this is a result of an insufficient articulation of demand on the part of SMEs as well as weaknesses in supply. SMEs are mostly not convinced of the impact these services can have on their businesses. They are at times unaware of BDS availability, with many being unable or unwilling to pay for existing services. On the other hand, BDS providers mostly offer supply-driven services or services that are unaffordable for SMEs. Therefore, there is a need for intervention to stimulate BDS market development. With a view to enable BDS market development and make Indian SMEs to enhance their competitiveness, SIDBI has initiated a project to provide need-based and demand driven BDS in the areas of technology, markets, skills, ICT, energy, environment etc. in select clusters. The project funded jointly by World Bank, DFID, KFW and GTZ, aims at providing BDS through professional organisations with proven track record in extending demand driven BDS and implementing cluster development interventions. APITCO has been chosen by SIDBI-PMD Division as the facilitator for the development of BDS markets in the Bhadohi Floor Coverings cluster. The project is to be implemented over 32 months has 4 phases viz. a) pre Implementation, b) implementation, c) sustainability and d) Exit 1.2) Methodology As part of the pre-implementation phase the Core Team of the Bhadohi Floor Coverings Cluster with the support of HO team, has completed the cluster diagnostics and prepared the Diagnostic Study Report as per guideline given by SIDBI and Foundation for MSME clusters. For carrying out the cluster diagnostics, the following methodology was adopted: a) Collection of secondary data b) Collection of primary data c) Data processing and analysis d) Preparation of study report a) Collection of secondary data
PMD-Division
Secondary data was collected from Government institutions and line departments like IICT,BIDA, DIC, DC-Handicrafts,LDM- U.B.I. CEPC, CSTRI etc. Some of the data was also collected from reports and news letters published by IICT, CEPC, news papers etc. Data was also collected through related web sites like Ministry of Commerce, Ministry of Textiles, Uttar Pradesh State Government Portal, portals maintained by technology suppliers etc.
Besides BIDA with the help of Director of Industries, Government of UP has initiated Cluster Development Programme at Bhadohi. The information given in the Diagnostic Survey Report of BIDA was also duly incorporated. b) Collection of primary data Primary data was collected by adopting a three pronged strategy given as below: i) Through Questionnaires : With MAFs, MEFs, TMFs, Weavers/ Job Workers, dyers, designers etc and key contacts of the cluster. For this purpose, a random sample of 160 units of various types, representing different regions of the cluster i.e Bhadohi, Varanasi, Mirjapur and Chanduali based on the size, scale of investments, Turnovers, product lines were considered etc. However due to higher concentration of cluster firms more emphasis was given to Bhadohi Mirjapur Belt. ii) Through Interviews: The Government Organisations and line departments like DCHandicrafts, DIC, BIDA, IICT, Textile Committee,CEPC, NABARD, WSC, IIHT etc. were contacted and information on various aspects relevant to the cluster growth was collected through detailed interactions and discussions. iii) Through Focus Group Discussions : The core team comprising of Cluster Manager and Net Work Expert with the help of the Subject Expert and Project Manager have organized focus group discussions of association members, weavers, labour, skilled workers and tufting firms. Energy and environment consultants from APITCO have also participated in some of the focus group discussions to elicit key issues related to waste management and pollution control.
c) Data Processing & Analysis The primary and secondary data collected was compiled and a comprehensive analysis was made with the help of Strategic Advisor and other HO officials regarding status of the cluster, BDS provision, key issues and required interventions. PMD-Division
d) Preparation of Study Report Based on the compiled data and analysis a draft DSR was thus prepared as per the template suggested by Foundation for MSME clusters. The draft report will be discussed and validated by Cluster Co-ordination Committee(CCC) comprising the following:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
Assistant General Manager, SIDBI Representative from BIDA Representative from DIC, Bhadohi Representative from DIC, Mirzapur Lead District Manager, Bhadohi Representative from DC-Handicrafts Representative from AICMA Representative from AICYSDA Representative from AICEA Representative from CEPC Representative from IICT Representative from MSME - DI Secretary- Cluster Manager, APITCO Limited, Bhadohi
PMD-Division
Chapter 2 Framework
2.1: The cluster
The Bhadohi floor covering cluster is concentrated in Bhadohi, and Mirzapur Districts of Uttar Pradesh. The main products of the cluster are Knotted Carpets (60%),Tufted Carpets (25%), Shaggy carpets(10%) and Durries (5%). The principal cluster firms are Merchant Export Firms (800), Manufacturing Export Firms (20), Tiny manufacturing firms (1000) and weavers (290000). 2.1.1 : Introduction of the Cluster Products:(A) Knotted Carpet :- Knotting is a process of introducing the pile yarn into the carpet during weaving by means of tying the knot. The nature of a knot and its insertion ensures that the pile lies at a very acute angle to the back. Knotted carpet looks attractive and antique than any other carpet. The price of knotted carpets ranges between Rs. 20,000 to 150000 based on size, design and quality ( knotting done by a skilled weaver ) (B) Tufted Carpet:- Tufted Carpet is producing on a frame type stand up loom. Weaver tufts the weft material into the already traced design through manual or tufting gun. Tufted carpet is cheaper than the Knotted carpets and attractive but less durable than
knotted carpet. The price range of tufted carpet varies between Rs. 1000 to (Tufting by manual gun) 20000 based on based on size, design
PMD-Division
(C): Shaggy Carpet :- Shaggy carpets are of two varieties i.e. 1- Loop Piles and 2- Cut Piles. Shaggy carpets are made on Punja Loom and Pit Loom. The quality of shaggy carpet depends on the number of picks and piles per inch. It is durable but not attractive like knotted or tufted carpet. The price range of tufted carpet varies between Rs. 5000 to 35000 based on size, design, quality and number of piles per inch. (Weaving process of Shaggy carpet) (D): Durries :- Durries are generally made on the pit looms with low quality warp and wefts. It is made of simple designs and cheaper than other type of carpets. Durability of durries is more than tufted but less than the knotted carpet. The price range of tufted carpet varies between Rs. 300 to 5000 based on size, design and quality.
2.2 Process Technology & Flow Chart The major product manufactured in the cluster is knotted carpet. Tufted carpet, Shaggy carpet and Durries are the other products manufactured in the cluster. The typical production process of knotted carpet is given as below:
(A): Dyeing of yarn: Different dyes and chemicals are used in yarn dyeing process. Cabinet or carrier type dyes are used as per the requirement of the buyer. Reactive, mordant and vat dyes, sulphuric acid , Soda Ash etc., are the major dyes and chemicals used in the process.
( Yarn dyeing in the cluster )
PMD-Division
(B): Warping It is an operation where warp is brought from one rod to other. At the end of this operation all the warps will be on the rod. The warps which are laid on the thick iron rod are transferred to a thin steel rod. After transferring the warp into thin steel rod it is folded and carried to the Loom for Mounting on loom which is followed by Shedding of warp. (Warping) (C): Knotting & Weaving Itis a process of introducing the pile yarn into the carpet by means of tying the knot. There are two types of knots viz. Ghiordes or Turkish knot and Sehna or Persian knot. The nature of a knot and its insertion ensures that the tuft lies at a very acute angle to the back (or the dia of the pile as it is called). Because each tuft is quite separate from the next, the weaver has an unlimited field, both in the choice of pattern that may be produced, and in the number of colour that can be used. (D): Washing (Chemical Finishing) The main objective of washing is removal of dust particles, swelling of fibers and removal of soft fiber and finally achieving the required softness and lustre. (E): Quality Checking & Packing: Each carpet is carefully inspected for color uniformity, type and quality of material used, piles per inch, height and strength of the pile, dimensional changes etc. After quality checking the carpet is then rolled and wrapped separately in polythene sheets and finally wrapped with jute fabric before shipping. The detailed flow chart is given as annexure-1
2.3: History of the cluster 2.3.1 Milestones/ Turning Points PMD-Division
Bhadohi & Mirzapur has over 400 years of history in carpet Industry. During 1775 1780, The East India Company started a manufacturing unit for knotted carpets followed by OBEETEE, GMP and E-HILL during the same period. During mid 20th century the cluster diversified from knotted to tufted, shaggy and durries. This Carpet belt has grown and diversified to other areas during the period 1970 to 2006. The cluster is going through a declining trend from 2007-08 onwards and declined by more than 50 % to Rs. 1480 crores in the year 2008-09 due to global economic recession and severe competition from China, Pakistan and Nepal. The All India Carpet Manufacturers Association (AICMA) was formed in the year 1985 by manufacturing and export firms for promotion of exports and handling of buyers who play with price by quoting lower price of competitors. 2.3.2 Overview of Past & Ongoing Interventions The following table shows the past and ongoing interventions in the cluster by various Government/ Private Agencies: Table 2.1 : Past and ongoing interventions Intervention Relocation of dyeing units Organised Buyer Seller Meets Institutions involved BIDA/ Pollution Control Board CEPC/ DIC Outcome/ Status 3 dye houses were relocated. Organising meets on regular basis at Varanasi and Delhi 2 lakh weavers covered under the scheme 20 firms participated in international trade fairs Scope for Intervention 47 dye houses are yet to be relocated Organising meets within the cluster for higher inductivity 90000 weavers need to be covered under the scheme Tiny firms need to participate in international fairs Need more such programmes covering entire cluster Interventions need to be initiated at the earliest
Distribution of artisan credit/ health cards
DC-Handicrafts
Participation in trade fairs and exhibitions
CEPC/ AICMA
Skill Upgradation programme for Weavers DSR preparation on Bhadohi Floor Covering and implementation under MSECDP
IICT/ DCH
500 weavers trained in weaving practices DSR prepared and submitted to DCMSME
BIDA/ DIC/ DCMSME
PMD-Division
Establishment of modern dye house under MSECDP Enhancement of job work charges for weavers Managerial Training
BIDA/ DIC/ DCMSME
Proposal submitted by DIC/BIDA to DCMSME 10% hike in weaver wages
Interventions need to be initiated at the earliest
AICMA/ Export Firms
Lead Bank UBI
30 Candidates trained / year
Increase more number of candidates
2.4: National, International Scenario and Features of Benchmark Cluster 2.4.1: International Scenario: Global production of floor coverings during 2007 was 0.15 million tonnes of tufted carpets, 0.10 million tonnes of hand knotted carpets besides 0.10 million tones of shaggy and synthetic carpets with an estimated value of US$ 17 billion of tufted carpets, US$ 22 billion of knotted carpets and US$ 5 billion of other carpets respectively. Germany, US, France, Canada, Italy, Saudi Arabia, Switzerland are major floor coverings importing countries. China, India, Nepal, Pakistan, Afghanistan, Iran, Belgium are major exporting countries of floor coverings which include carpets, mats and rugs. (Source : Woodhouse Publishers) The global demand for flooring coverings is expected to increase by 4% per annum due to growth in building construction in Western Europe, Latin American Countries and North America besides increase in global motor vehicle production. While the demand for knotted and tufted carpets is declining, the demand for shaggy and synthetic carpets is showing increasing trend due to change in customer tastes and affordability. India is the major exporter of knotted carpets followed by Iran and together they contribute 50% of the global knotted carpet production. However there is 5% reduction in global exports from 2004 to 2009 due to competition from synthetic carpets, economic recession and changing market trends. 2.4.2: National Scenario: The major carpet producing belts include Bhadohi Mirzapur, Agra in Uttar Pradesh, JaipurBikaner in Rajasthan, Panipat in Haryana and Srinagar in Kashmir. The floor coverings manufactured in India are mainly exported. Domestic market for carpet is small in India. This is mainly because of the purchasing power of local players. Also, there is no proper PMD-Division
channel for marketing these products in India leading to lack of awareness in the Indian market. Presently, India exports floor coverings worth over Rs. 2700 crores. The domestic market size is about Rs. 200 crores. Table 2.2 : Category wise Exports of Floor Coverings from India
Value in Rupees Crores PRODUCTS 200607 Handmade Woollen Carpets, Rugs, Druggets, Durries etc. including Cotton Carpets excluding Handmade Woollen Tufted Carpets Handmade woollen tufted carpets Handmade Silk Carpets Handmade Staple/ Synthetic Carpets Total 1161.10 1156.70 983.22 212.47 66.66 221.87 69.59 210.58 63.65 255.25 46.71 14.65 287.40 55.12 17.29 875.71 217.81 46.65 14.10 600.06 2234.63 2076.57 1451.28 491.33 515.90 321.50 200708 200809 Value in U.S. Dollar Million 2006-07 @45.4810 2007-08 @40.2513 2008-09 @45.1410
3674.86 3524.73 2708.73 807.94
(Source: CEPC) More than 95% of the Indian floor coverings are exported to various European and North American Countries, Germany and US being the major importers. In fact 50% of the total export market for Indian Carpets accounted for USA. India also import floor coverings of cheaper quality and price mainly synthetic carpets from China, Nepal and Pakistan as the Indian floor coverings are costly and do not meet expectations of the Indian customers. Details of synthetic floor covering imports in to India given as below: Table: 2.3 Imports of Carpets and Other Floor Coverings in to India
Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Value (in Rs. Lakhs) 8,632.87 11,920.19 15,507.19 22,171.69 21,821.61 18,231
(Source: Ministry of commerce) PMD-Division
Major Issues The floor coverings sector in India is at presently going through a major change. Traditional markets are saturated while new markets are offering opportunities for growth. Modern designs and low end floor coverings like hand-tufted carpets are attracting new customer base. Nevertheless, total sales of the sector have been stagnant in terms of value. Hence, traditional model of floor covering business needs to adapt to such changes. Product mapping with the consumer preferences is necessary for future growth. Indian carpet industry is finding it difficult to compete with Chinese industry in terms of volumes and prices. (See value chain for details)
2.4.3 Description of Benchmark Cluster
The Bijar Hand Knotted Carpet cluster of Iran may be considered as benchmark cluster for knotted carpet making, because of its ethnic value, skill, technology, organized planning with composite manufacturing. Some of the important issues which reflects why Bijar is pioneer in knotted carpet manufacturing are given as below: Local availability of high quality wool and natural colour leading to low input price when compared to Bhadohi. While in Bhadohi wool comes from far of BIkaner and imports from New Zealand leading to 10 to 20% increase in cost of production Availability of traditional craftsman with traditional skills in making of Persian carpets while in Bhadohi the weavers are diversified in to cheaper varieties and lost the ethnic touch leading to shrinkage of high end export market Most of the Bijar Carpet Manufacturers use hand spun yarn which gives good texture and lustre and beauty to the carpet leading to high price realization Execution of bulk work orders in an organised way where units will come together in group mode leading to on time execution and lower economics of scale PMD-Division
10
The carpet federation of Iran facilitates in procurement of bulk orders, where as in Bhadohi the carpet manufacturers have to depend on self marketing Availability of traditionally skilled manpower, use of hand spun yarn and natural colours, bulk order procurement by federation are the major features in Bijar cluster which are found lacking in Bhadohi cluster. There is a stiff competition from coir based floor coverings in the domestic market. As such cluster firms need to adopt synthetic / acrylic yarn, which is suitable for local climatic conditions. Manufacture of low end carpets at competitive price to compete with non resilient floor coverings (viz., Coir, Bamboo etc) can also be considered to foray into domestic market.
2.5 Vital Statistics The firms in the cluster can be divided into four categories viz. Manufacturing Export Firms, Merchant Export Firms, Tiny Manufacturing firms and weavers. The firms having entire production process and exporting carpets are defined as Manufacturing Export Firms (MAFs), The firms deal with trading and exporting are defined as Merchant Export Firms(MEFs). While Tiny Manufacturing Firms(TMFs) and Weavers are confined to only production process and supply to MEFs. Majority of the TMFs and weavers are operating on job-work basis. The ownership pattern, capacity, average investment and production details of these firms are given in the following table: Table 2.4: S. No Type of Firms Types of firms, their average investment and production Nature of Ownership Number Avg. Total Employment Turnover of firms Investment production (In Nos.) (Rs. In on P & M (in Sq. Crores) (in lakhs) Yds) p.a 800 50.00 4800000 40000 1150
I.
II.
III.
IV
Proprietary/ Partnership, Limited Company Manufacturing Proprietary/ Export Partnership, Firms(MAFs) Tiny Proprietary/ Manufacturing Partnership Firms(TMFs) Weavers Proprietary PMD-Division
Merchant Export Firms (MEFs)
20
100.00
240000
3000
59
1000
5.00
2400000
9000
98
290000
0.10
3480000
173
11
Concentration of Units In the cluster all type of firms are wide spread across Mirzapur and Bhadohi districts but majority of the MEFs are concentrated in the Bhadohi town, Nai Bazar, Khamaria, Kacchwa in Bhadohi district and Mirzapur. The MAFs and MEFs are mainly concentrated in the Bhadohi District. The TMFs and weavers are widely spread across all four districts (Bhadohi ,Mirzapur, Varanasi & Chandauli ) The location wise details of different types of firms (excluding weavers) are given as below: Table 2.5: Area wise details of units S. No 1 2 3 4 5 6 Area Product Range No. of Units 500 250 370 300 250 150 1820
Bhadohi Town & surrounding Knotted ,Tufted, Shaggy, Durries etc. Areas Nai Bazar & surrounding areas Knotted, Tufted, Shaggy, Durries etc. Gyanpur, Aurai, Gopiganj etc. Mirzapur , Kacchwa Varanasi Chandauli , Saidraja Knotted ,.Tufted, Shaggy, Durries etc. Knotted & Tufted Hand loom Durries, Tufted & Shaggy etc. Shaggy, Jute Carpets & Pit loom Durries Total
2.5.2: Business Development Service Providers (BDPs): Strategic BDS is provided by strategic and embedded BDS Providers. Strategic BDS Providers can be a) public b) private organised and c) private unorganised (i.e., individual BDS providers). Distribution of strategic BDS providers appears below: BDS providers
Generic BDS 1) Auditing/ Accounting firms(25) 2) NGOs (2) 3) IT firms (3) 4) Transporters (50) 5) Shipping agents(100) 6) contractors(200) 1) 2) 3) 4) 5) 6) 7) 8)
Strategic BDS Designers (250) Testing Labs/ QC Institutions (2) Banks & FIs (18) IICT CAD/ CAM Firms (4) NIFT/ NID TETC(2) Textile Committee
PMD-Division
12
The embedded BDS providers are the value chain partners but only some of them do provide such services. A list of the other value chain partners is as below: 1) 2) Buying Agents(60) RM Suppliers a. Yarn suppliers (60) b. Cotton Cloth suppliers (30) M/C Suppliers(5) Spinning mills (20) Dye houses(300)
3) 4) 5)
2.5.3 Who Does Who Pays (WDWP) Matrix Table 2.6 : Who Does Who Pays Matrix Who Does Who Pays Remarks Auditing Firms 100% by MEFs, Besides auditing firms are also MAFs providing services like filing of tax returns and project preparations DC-Handicrafts 70% grant 30% by beneficiaries 100% by MAFs, MEFs, DHs 100% grant 100% by trainees 100% by trainees 100% by bank 100% by trainees 100% by MEFs and MAFs 100% by MAFs, MEFs 100% by Buyer 50% grant 50% by MAFs, MEFs 100% by MAFs & Dye houses At present catering to weaver community IICT having NABL Certification Awareness programmes on pollution control Running short term courses for students in IT Running short term courses for designers/ Dyers/ Accounting Management training programmes Running short term courses for students
BDS Access to finance
Testing Capacity Building
IICT/ CSTRI PCB Jana Sikshana Samsthan IICT Union Bank Private training Institutions Free Lance Designers IICT Buying Agents CEPC
Product Development
New Design and concept development
Market Development
For participation in trade fairs and exhibitions Providing land and infra facilities at subsidized price
Infra Structure
BIDA
There are no BDS providers in the areas of Technology Up-gradation, Technology Transfers, Quality control, Energy and Environment management. There is an ample scope for these providers in the cluster.
PMD-Division
13
Chapter 3 ANALYSIS
3.1: VALUE CHAIN ANALYSIS
COMPARATIVE VALUE CHAIN OF HAND KNOTTED CARPET KNOTTED CARPET: SIZE = 5 X 8 (4 GAUGE)
QUANLITY: 7/52
Table 3.1 Comparative Value Chain of medium quality knotted carpet (between Bhadohi and Bijar, Iran)
Process Qty (KG/ Gauge) Cost (in Rs)/ unit Bhadohi 80 130 Bijar 80 100 Total Cost (In Rs.) Bhadohi 160 2080 Bijar 160 1600 Cumulative Cost (In Rs.) Bhadohi 160 2240 Bijar 160 1760
Bhadohi Warp Pile 2 kg. 3.5 kg/ gauge(16KG) 3 KG/ Gauge
Bijar 2 kg. 3.5 kg/ gauge(16KG) 3 KG/ Gauge
Woolen Yarn for tufting Thari & Lachi Dyeing Charges Weaving Charges Washing(Chemical finishing) Finishing (Mechanical) Packing Charges Transportation charges Production cost Export Cost (40%)
130
80
1755
1080
2070
1323
5 KG 16 KG 4.5 Gauge 4.5 gauge 4.5 gauge
5 KG 16 KG 4.5 Gauge 4.5 gauge 4.5 gauge
80 30 550/ Gauge 30/ Gauge 50/ Gauge 50/ Pc 100/ Pc
60 80 400/ Gg 25/Gg 40/Gg 50/Pc 80
400 480 2475 135 225 50 100
300 1280 1800 113 180 50 80
2640 3120 5595 5730 5955 6005 6105 6105 8547
2060 3340 5140 5253 5433 5483 5563 5563 7789
The above value chain reflects the following advantages in Bijar cluster of Iran when compared to Bhadohi Cluster of India:
PMD-Division
14
1- The price of raw material is 10% higher in Bhadohi than the Bijar because of collective procurement of raw material in Bijar. 2- The dyeing charges are higher in bijar cluster because of use of natural colors while in Bhadohi the charges are less because of use of synthetic colors. But use of natural colours will give ethnicity and attract more international buyers. 3- Transportation charges is more in Bhadohi while in Bijar cluster is less due to execution of bulk orders with the help of Federation. 4- Though the production cost is almost similar in both the clusters but due to use of natural colors, hand spun yarn and ethnicity of the carpets the profit margins are higher in Bijar cluster than Bhadohi cluster. 3.2: BDS analysis The Strategic BDS providers in the cluster can be categorised in to three types viz. Institutional BDS Providers (Public and Private), Associations and Private Unorganised BDS Providers. 3.2.1 Institutional BDS Providers (Public & Private) A. Public Providers: i) Indian Institute of Carpet Technology (IICT) The Indian Institute of Carpet Technology Bhadohi, only of its kind in Asia, was set up to provide support to the carpet industry in the area of human resource development, research and development and common facility services. Human Resource Development: HRD is done through academic courses, which the institute undertakes. These include :- 1) Short term certificate courses of 4 Months in CAD Designing, Dyeing and Computer Accountancy 2) Distance learning diploma programme of 3 years (IDLP) in weaving, carpet manufacturing, chemical processing, carpet designing and maintenance of carpet 3) B.Tech. in carpet technology of four years duration. These courses will cover training in
computer aided designing colour matching, physical and chemical testing of various parameters of various types of yarn used in manufacture of carpets and floor covering, standardization of dyeing techniques including vegetable dyes. Standardization of washing and finishing technique and weaving on improved looms. Research and Development: The institute conducts research work in the areas of : 1) blending of fibres for different quality yarns, 2) colour matching and standard recipes for different colours/shades, 3) dyestuff and eco friendly dyes, 4) types and systems of weaving and different knots included improvement in looms, 5) modern systems of carpet finishing/
PMD-Division
15
washing/standardization of technology and 6) development work on designs. Besides any other area of concern to industry is also attended to. Common Facility Services: The institute provides common facility services to the industry on payment in the following fields:- 1) testing of various parameters of fibres and yarns, 2) testing of various parameters of carpets and floor covering, 3) colour matching and recipes of dyes, sale of designs, colour shade cards, 4) testing of eco friendly dyes, 5) provide documentation and library facilities including creation of museum of carpet and floor coverings, 6) arrange exhibitions, seminars, conferences to provide facilities of photo studio, business centres etc,. 7) arrange lectures of national and international specialties and 8) Inviting foreign designers, experts, professionals for continuous flow of exchange of knowledge and expertise. At present the services rendered by IICT for Bhadohi cluster is limited to testing and HRD for Merchant Export firms and few Manufacturing Export firms. The cost of the services rendered by IICT is borne by the users and there is no grants/ subsidies involved. There is a good demand for testing, short term courses of in CAD/ CAM designing of 3 months duration, dyeing and finishing and R&D services, offered by IICT in the cluster. ii) CEPC The CEPC provides necessary information about the buyers, market trends and support to participate in exhibitions and trade fairs. There is a good demand for the support scheme to participate in exhibitions and trade fairs. 50% of the cost of the service is provided in the form of grant from Govt. of India. All the cluster Merchant Export Firms and Manufacturing Export firms are the members of the CEPC. The linkage of CEPC with these firms is found to be strong. However the tiny manufacturing firms (TMFs) are missing out this opportunity. iii) Weavers Service Centre (WSC) The local WSC is imparting three types of training programmes viz. weaving, designing and dying. However in the cluster the services of WSC are mainly confined to handloom sector. There is a good demand for short term courses in dyeing, designing and weaving. The fee for the services rendered is to be paid by the user. However, children from weaver families can avail 50% grant given by DC-Handlooms for short term courses in the designing, dyeing and
weaving. Office of WSC is located in Varanasi.
PMD-Division
16
iv) Indian Institute of Handloom Technology (IIHT) IIHT is located in Varanasi providing diploma and post diploma courses in handloom and textile chemistry. Few students of IIHT have joined local dye houses as managers and supervisors.Linkage with majority of the cluster firms is weak. v) Textile Committee(TC) The linkage of Textile Committee with the Exporters and Manufacturers is limited. Most of the international buyers are insisting for certification from internationally accredited laboratories like IICT, CSIRT and SGS etc. Though the cost of the service is cheaper than the private testing laboratories, most of the export manufacturers/buying agents/buyers prefer private testing laboratories due to their global existence and accreditation with international firms. vi) SIDBI SIDBI has been assisting the entire spectrum of SSI Sector including the tiny, village and cottage industries through suitable schemes tailored to meet the requirement of setting up of new projects, expansion, diversification, modernization and rehabilitation of existing units. The local SIDBI office is located at Varanasi and headed by Assistant General Manager. So far cluster firms have not availed the services of SIDBI vii) Banks & FIs The details of the Banks operating in the cluster are given in the following table: Table 3.2: List of Banks with in Bhadohi cluster S.No. 1 2 3 4 5 6 7 8 9 10 11 14 15 16 17 Name of the Bank Punjab National Branch State Bank of India State Bank of Bikaner Central Bank Jammu and Kashmir Bank UCO bank Axis bank Bank Of Baroda ICICI bank HDFC bank Union Bank Canara Bank Sanyukt Khsetriya Gramin bank Allahabad Bank Maharashtra Bank No. of Branches 1 2 1 1 1 1 1 1 1 1 2 1 2 1 1
PMD-Division
17
Union Bank of India is the lead bank in Bhadohi District. There are no special packages available for floor coverings sector. Nevertheless the lead bank is running a training centre viz. Rural Self Employment Training Institute for providing vocational courses in stitching, Embroidery and computers besides EDPs.
At present the MEFs and MAFs are having good linkage with the banks in availing term loan, cash credit and other non-fund based limits. However, only 10% of the manufacturing firms have availed Term Loan and CC limits mainly due to lack of awareness on banking procedures.
viii) Central Silk Technological Research Institute (CSTRI), Varanasi The CSTRI is having state of art laboratory facilities catering to the needs of handloom and floor coverings sub sector. CSTRI is mainly targeting eco friendly bendamines1 and dye testing which were not offered by other testing labs. However the linkage with the cluster firms is limited as most of the international buyers are insisting for laboratories like SGS., IICT etc. certification from internationally accredited
ix) National Institute of Fashion Technology (NIFT), New Delhi NIFT Provides regular programmes in fashion designing, textile designing, knitwear designing etc. NIFT graduates are providing their services as full time or as freelancers to the cluster. The fee for the services rendered is to be paid by the user.
x) National Institute of Design (NID), Ahmedabad NID Provides design consultancy services apart from running regular PG courses in designing. They are also in to Research & Development in designing and concept making. There is a good scope for conducting customised design development programmes for the designers operating in the cluster. At present linkage with NID is very poor.
xi)Government Indutrial Training Centre(ITC) I.T.C is situated one each in Mirzapur and Bhadohi. At present there are no courses offered by ITC related to floor coverings sector. However there is a good demand for skill based training programmes in knotting, finishing and quality checking. Support Institutions
Bendaminse is Benzene group of dye used due to its fast dyeing and cheaper price. But use of Bendamine is hazardous as it leads cancer, tuberculosis and breathing problems.
PMD-Division
18
i) District Industries Center (DIC), Gyanpur, Bhadohi & Mirzapur At present the services of DIC are confined to Entrepreneurs Memorandum - 2 for cluster firms and duty draw back for only export firms. However providing other services like implementation of Government promotional schemes, coordination with banks, conducting awareness programmes on Government Schemes are found wanting in the cluster. Recently DIC, Gyanpur in coordination with BIDA has started Cluster Development Programme under MSECDP Scheme of DC-MSME to implement soft and hard interventions. ii) District Rural Development Agency (DRDA), Bhadohi and Mirzapur SHG formation, Capacity building of SHGs, Providing Scholarships, conducting skill upgradation programmes are the major services offered by local DRDAs. Skill up-gradation programmes in weaving, knotting and finishing have good scope for rural artisans in the cluster. iii) Micro, Small and Medium Enterprise Development Institute (MSME DI) The local MSME DI is located at Varanasi. The services offered by MSME-DI are conducting Market Surveys, financial support for infrastructure development and Common Facilities Centres. The quantum of grant varies from 40 to 60% based on size of the firms and nature of facilities required. The Tiny Manufacturing Firms and weavers have no linkage with MSME-DI. There is good scope for availing grant for any Common Facilities Centre proposed to be established under MSECDP Scheme. iv) National Bank for Agriculture and Rural Development (NABARD) The NABARD office is situated in the Varanasi Headed by Assistant General Manager. There is good demand for skill upgradation programmes for weavers in the cluster. NABARD will provide 100% grant for these programmes but no activity have been done in the cluster so far. v) DC, Handicrafts (DC-H) Health Insurance cards and artisan credit cards were provided to more than 70% of the weavers. However the linkage was found to be poor with carpet training centre of DC-H is located at Varanasi.. Though the department has various schemes in areas related to HRD, cluster development, Market Research and R&D, however there is a good scope for skill based training programmes, EDPs and other training programmes sponsored under HRD Scheme. The quantum of grant varies from 70 to 100% based on the nature of the programme.
PMD-Division
19
vi) Bhadohi Industrial Developmenr Authority (BIDA) BIDA has developed 50 plots for relocation of dyeing units in Carpet City at Bhadohi. However due to poor infrastructure development only 3 dye houses are in operation in the relocated area. Other dye houses are also willing to relocate if necessary facilities were provided. Recently BIDA has undertaken Cluster Development Programme under MSECDP Scheme of DC-MSME. They are also proposing to establish a common dyeing plant in the cluster for which in principal sanction was given by DC-MSME. vii) Pollution Control Board (PCB) The UP State Pollution Control Board will monitor water and air pollution levels with specific reference to the local dye houses. The PCB has issued notices to majority of the dye houses as they are flouting the pollution control norms in the areas of safe water disposal and effluent treatment. There is a good scope to organise awareness programmes on pollution control to be sponsored by PCB. B. Private Organised BDS providers: i) Loom Suppliers:
All the loom suppliers are located at Varanas. Most of the cluster firms are in contact with loom suppliers through agents. Lack of loom suppliers with in the cluster is effecting maintenance problems leading to low productivity. There is a good scope for linking of loom suppliers for adoption of advanced looms like Broad Looms which increases productivity.
ii) NGOs: There is 1 NGO namely M/s. Manav Vikas Seva Samithi providing services in the areas of skill upgradation, computer trainings and Entrepreneurship Development Programmes in the cluster. This NGO is getting grants from Ministry of Textiles, ministry of MSME and Ministry of HRD. They are also facilitating artisans in obtaining artisan credit/ health cards from DC-Handicrafts. ii) Designing Institutions: There is one private design institution viz. Chinmoy Kalaniketan, Varanasi providing training programmes in CAD / CAM designing located at Varanasi.. The cost of the training has to be born by the trainees. The traditional designers working in Export Manufacturers require software based training programmes in design development. The fees can be borne either by the designers, BDS promoters like DC-Handicrafts, NABARD or by the cluster firms. PMD-Division
20
iii) Dye houses: There are 500 dye houses in the cluster catering to both handloom and floor coverings sectors. Out of these 150 units are operating manually and remaining 350 are mechanized. 300 dye houses provide services exclusively to floor coverings sector. Wool dyeing, polyester dyeing, cotton dyeing, acrylic dyeing are the different services offered by the dye houses. The capacity of the mechanized dye houses ranges between 2 Tonne to 40 Tonne per day whereas for manual dye houses it is limited from 100 kg to 1 Tonne per day. Dye houses with in-house testing facilities are very few in the cluster but which are having very good demand. iv) Transporters: There are 100 transporters and transport agencies operating in the cluster. Container service is the main service provided by the transporters. v) Shipping Agents: An estimated 100 shipping agents are located in the cluster catering to the needs of floor coverings sector. Clearing & forwarding, Stevedoring, warehousing are the services having good demand. vi) Auditing Firms: An estimated 30 auditing firms are operating in the cluster. The services ranges from preparation of annual balance sheets, sales tax, service tax, vat refund, excise duty, tax audits, project report preparations, TDS, etc. Preparation of bankable reports, linkages with banks, EXIM services are having good demand. C. Associations: There are four associations dealing with carpet industry in the cluster, as detailed below: All India Carpet Manufacturers Association (AICMA), Bhadohi. All India Carpet Yarn Spinners & Dealers Associations(AICYSDA), Bhadohi All India Carpet Exporters Association (AICEA), Mirzapur Mirzapur Carpet and Durries Export Associations (MCDEA) , Mussaffarganj, Mirzapur The major activities undertaken by the important associations are given as below: i) All India Carpet Manufacturers Association (AICMA), Bhadohi: The All India Carpet Manufacturing Association caters to the MEFs and MAFs and established in 1985. The association is having own office at Kaleen Bhavan, Maryadapatti, Bhadohi. The
association has employed 2 persons for looking after association activities. The association helped to increase job work charges for workers/ weavers by 10%. PMD-Division
21
ii) All India Carpet Yarn Spinners and Dealers Association (AICYSDA), Bhadohi: The All Carpet Yarn Spinners and Dealers Association (AICYSDA) are the associations of the yarn spinners and dealers. The association is having own office at Hotel Shiraz, Station Road, Bhadohi. The association has employed 1 person for looking after association activities. The major activities of the association are price fixation of the raw materials, conducting annual meetings to address common issues. iii) All India Carpet Exporters Association (AICEA), Mirzapur:AICEA was established in 1990, to cater the needs of Mirjapur MEFs. Most of the association members are also members of AICMA and CEPC. The major activities of the association are to provide market related information, working of the problems of the MEFs in the areas of production, timely realization of money from buyers etc. However since last four years the operations of the association became limited due to lack of cohesiveness among members and economic recession.
iv) Mirzapur Carpet and Durries Export Associations , Mussaffarganj, Mirzapur This is the association based in Mussaffarganj, Mirzapur district and related to the durries manufacturers and exporters. At present the association is inactive due to differences among the members. Table no 3.3: Status of existing associations in the cluster Type of Firms BMO Members (in numbers) News letter / website Separate office Staff for association activities Joint activities ( price / wage fixation) Yes No Yes Yes
MEFs & MAFs
AICMA, Bhadohi MCDEA, Mirzapur
250 30 44 389
Yes No No Yes
Yes Yes No Yes
Yes No No Yes
Exporters RM Suppliers
AICEA, Mirzapur AICYSDA, Bhadohi
PMD-Division
22
D. Private un-organised BDS providers: i) Sub-Contractors: Most of the Exporters procure orders from the international buyers and get the work done from sub contractors who in turn give the job to weavers/ job workers operating in different villages. The contractors collect raw material from the MEFs, MAFs and after the weaving, they re- collect the pieces from weavers and return back to exporter. Exporters pays the charges to the agents, who in turn pay the wages to the respective weavers after deducting his margin which ranges from 5 to 10%. As per the field survey estimations there are 250 sub-contractors in the cluster. ii) Freelance Designers: There are about more than 50 freelance designers providing their design development services to the cluster. Majority of the export firms are also availing the services of designers based at Varanasi and Delhi also. On an average a designer charges a minimum of Rs. 500 per design. However the charges are based on the complexity of design and brand image. iii) Buying Agents Buying agents are appointed by the international buyers for timely execution of orders, quality checks, monetary transactions etc. Most of these agents are located at Gurgaon, New Delhi and Varanasi. An estimated 60 agents deal with carpet exports in the cluster. The supply side analysis of BDS with respective to the degree of usage of the available BDS is given as below: Table 3.4: Usage level of supply side BDS Providers Business Development Services BDS Providers Raw Material Suppliers 1 0 0 0 0 0 3 Technology Marketing HRD QUALITY Finance Logistics
IICT CEPC BIDA WSC IIHT Textile Committee CSTRI Private Organised Dye Houses Testing Lab CAD/ CAM Firms
4 1 0 2 4 1 2
0 4 0 3 0 0 0
4 0 0 0 1 0 0
4 1 0 1 2 0 5
0 0 1 1 0 0 0
4 1 1 0 3 1 0
4 3 0
3 3 4
2 0 1
0 0 0
4 3 2
0 0 0
0 0 3
PMD-Division
23
Raw Material suppliers M/C Suppliers Transporters Quality Controll Institutions Spinning mills Testing Labs Shipping agents Auditing/ Accounting firms IT firms NGOs Private UnOrganised Designers Dyers Labour contractors Buyers Agent
4 0 2 1 4 2 0 0 0 0
0 4 0 3 2 4 0 0 4 0
3 4 1 0 3 0 0 0 3 0
0 0 0 1 0 0 0 0 0 0
3 0 0 4 3 3 0 0 3 0
2 1 1 0 2 0 0 4 2 0
0 0 0 0 0 2 3 2 2 3
0 4 2 0
3 3 0 0
2 2 0 4
0 0 0 0
3 4 2 3
0 0 3 2
3 1 0 0
Note: 0: Not Applicable 1: Very Less 2: Moderate 3: Good 4: Excellent of services by the firm
The major behavioural problems on supply side based on the above discussions Weak penetration due to poor marketing techniques Apprehensive about new markets like foray into manufacturing firms Weak penetration of BDS promotion agencies like DC-H, Carpet training centre, CEPC due to poor awareness about their activities and schemes Limited capabilities to cater larger markets The issue wise demand side problems are given as below: Table 3.5: Demand Side Problems Demand Side The firms are not aware of the services Manufacturing firms are not in a position to afford the services Lack of information about the service providers Poor networks among the firms and weak associations resulting in lack of collective utilization of services Most of the firms do not foresee the value of the BDS services Awareness of buyers regarding technical BDS Complicated policies and procedures of banks and other FIs
PMD-Division
24
Status of existing BDS providers: A. Govt. Institutions: Table 3.6 : Status of cluster specific Government Institutions S.No. Name Services Annual fee (Rs. In laks) No. of Units availing \services 1150
DIC
Registration / trainings / Free awareness programmes
IICT
Testing
lab
training/ No annual fee/ courses on fee basis term No annual fee/ courses on fee basis Quality checking on charge basis
350
Short term courses 3 WSC Training courses 4 TC Testing lab / short
Nil
Nil
5 6
Govt. ITI MSME-DI
Training
NA
NA
Trainings / Market survey Grant varies from 50 Nil / technology transfer / to70% based on type market survey of scheme Trainings / Market survey Grant varies from 50 to 2 lakh / technology transfer / 100% based on type of market survey scheme Allotment of plots Finance Finance / Trainings NA NA 100% grant 150 Nil Nil
DC-H
8 9 10
BIDA SIDBI NABARD
NA = Not Available
PMD-Division
25
B. Private BDS Providers Table 3.7: Status of private BDS Providers S.No. Name Services Average service No. of Fees (In Rs.) Units availing services 500 onwards 800 1500
1 2
Designers CAs
Design development
Tax returns, 1000 to 4000 auditing, financial statements, project reports Production the carpet Testing lab Yarn dyeing Logistics C&F
3 5 6 7 8
Sub-contractors IICT / TC Dye houses Transporters Shipping Agents
of 10000 to 15000 250 per month 350 to 1000 20 to 40 per KG 25 to 30 per Km 50 10 300
Rs. 40 to 70 per 300 Roll
C. Embedded Service Providers: Table 3.8: Status of Embedded Service Providers S.No. 1 Name Dyes Chemical suppliers No. of Units availing services & Providing dyestuffs 1000 and chemicals Product development, trainings, workshops, R&D Market trends, 800 design development, End user requirements Services
Buyers
Demand Assessment Based on the value chain the major demand side service providers with potential to create substantial impact on performance were identified and the following assessment has been made:
PMD-Division
26
Table 3.9: Demand Side Assessment Type f the Service Provider Designers Auditing Firms Services Offered Type of Firms using the service MEFs, MAFs MEFs, MAFs Present Status (of usage) Medium Medium High
Design Development Imparting Training Preparation of financial Statements Filing of Tax Returns Preparation of Project Reports Testing of various parameters Quality Certifications Consultancy on QC norms Production of the carpet On time production Supply of Weavers Dyeing of yarn
Testing Labs/ QC Institutions SubContractors Dye Houses
MEFs, MAFs MEFs, MAFs TMFs MEFs, MAFs TMFs MEFs, MAFs TMFs MEFs, MAFs TMFs
Medium Medium High Low High Low High Low Medium High Low Medium High Low
IT firms
Selling of software packages Annual Maintenance Selling of customized soft ware Providing capital & term loan
Financial Institutions & Banks
Conclusions: Poor awareness on services offered. Weak penetration levels. Limited accessibility. Awareness on quality consultants, energy/ environment consultants/ institutions is very poor for cluster firms. IIHT, WSC, Textile Committee and NABARD are mainly catering to handlooms sector and their penetration in floor coverings is limited. The affordability of qualified designers/ design firms, technical training institutions is beyond the reach of Tiny manufacturing firms. The weavers, job workers and dyers are not aware of Government Schemes offered by KVIC, DIC and DRDA.
PMD-Division
27
Energy and Environment consultants, loom suppliers, Banks and Financial Institutions are the critical BDS providers for the cluster. Non availability of loom suppliers within the cluster is leading to high procurement and maintenance costs.The State Pollution Control Board has issued notices to dye houses due to high pollution levels and lack of ETP facilities which may lead to closure of units, as such the services of environment
consultants is very critical. The cluster is facing acute power shortage, which is vital for dye houses and Manufacturing export firms. To adopt alternative energy resources and effective utilisation of fuel the role of energy consultants is vital. IT firms, Quality consultants, loom Suppliers are the major BDS providers who are not available within the cluster. As such establishment of linkage with these BDS providers is vital for the growth of the cluster. Environmental consultants, Qualified Trainers in weaving & finishing, Software vendors are the major BDS providers required immediately to meet the pressure points. 3.3 Analysis of Business Operations 3.3.1 Raw Material The major raw material used for the production is Wool, Viscose/ synthetic yarn(Polyester, Acrylic, Nylon, jute etc.) and other chemicals for washing. The indigenous yarn is procured from local spinning mills besides from Bikaner and Surat through traders. The yarn is also procured from New Zealand by traders operating at Varanasi. More than 90% of the yarn is purchased, dyed and supplied to weavers/ tiny manufacturers by Merchant Export Firms (MEFs) and Manufacturing Export Firms (MAFs). Price fluctuation of yarn is high due to seasonality and fluctuations in demand. The cotton yarn is purchased by manufacturing firms form the local yarn suppliers which is used as a warp. The chemicals used in chemical and mechanical finishing are supplied
through dealers and distributors operating in the cluster. No collective purchase mechanism is observed in the cluster. 3.3.2 Technology Knotting process is the major manufacturing process observed in the cluster. The type of machinery & equipment used in the production process are hand looms, broad looms, dyeing machine, Finishing Machine, Washing Equipments. Majority of the machinery suppliers exist outside the cluster. Limited access to advanced technologies in Chemical & Mechanical finishing are the major constraint observed in the cluster. PMD-Division
28
3.3.3 Marketing
The MEFs and MAFs are supplying the raw material and designs to the tiny manufacturers/ weavers through sub contractors on job work basis. The payment mechanism for tiny manufacturers is 1 month credit period while for weavers either cash or on weekly basis. During the field survey it was observed that only MEFs and MAFs are doing direct marketing through buying agents while tiny manufacturers and weavers are exclusively depending on export houses. The buying agents will be appointed by the buyers to check the quality of the finished goods with parameters as given by the buyer and timely execution of the order. Poor emphasis on domestic market and its requirements, exploitation by buying agents, late delivery of the goods affecting the repeated orders are the major constraint observed in marketing. The present supply chain prevailing in the cluster is given as below: Existing Supply Chain in the Cluster
3.3.4 HRD PMD-Division
29
The availability of trained craftsmen in weaving, finishing process is very limited leading to low productivity and high wastage. Though there are institutions/ organizations who are providing training/ courses in designing and dyeing on long term basis, however no institutions are offering short term courses in weaving, designing and Finishing (Chemical & Mechanical). More than 80% of the Tiny manufacturing units are not following best management practices due to lack of awareness leading to poor accounting practices, limited marketing efforts, poor quality and ergonomics. 3.3.5 Quality No quality control measures/ Checks were identified in weavers and tiny manufacturing firms leading to poor quality and higher rejection rate with cutting in job work charges and delay in payments as it effect the entire value chain. More than 50% of the Merchant Export firms are not aware of quality certifications or quality specifications of international buyers leading to limited direct marketing. 3.3.6 Finance
Poor bank linkage was observed for the tiny manufacturing firms and weavers during the field market survey. More than 80% of the MEFS and MAFs are having good linkage with the banks. The tiny manufacturers and weavers are mainly depending on money lenders or own sources of funds for purchase of equipment and working capital including labour payments. The money lenders are charging anywhere between 15 to 20% based on the entrepreneurs credibility and net worth. The MEFs and MAFs have their own accountants/ Auditing firms to maintain the financial transactions, where as the Tiny Manufacturing Firms are not following any systematic accounting procedures. 3.3.7 Energy & Environment
Many dyeing units in the cluster use dyes that release aromatic amines (e.g., benzidine, toluidine). Dye bath effluents may contain heavy metals, ammonia, alkali salts, toxic solids and large amounts of pigments - many of which are toxic. Out of 300 only 5% of the dye houses are having ETP facilities while the remaining firms are releasing in to the open fields and canals leading environmental hazards.
PMD-Division
30
Energy Related : The requirement of power in the manufacturing firms and export houses is minimal. But the dye houses require a minimum of 10 to 20 HP of power. However irregular power supply and usage of generators is leading to higher overhead costs. The continuous use of generators is also creating environment related problems.
(Effluents from Dye houses polluting the agricultural fields)
Ergonomics: The working conditions in tiny manufacturing firms, weaver house holds is found to be very poor in the areas of ventilation, floor space, hygeinity etc. leading to severe back pains, bronchitis and other breathing related problems. 3.3.8 Information and Communication Technology About 50% of the MEFs and MAFs are having their own web portals and doing e-commerce in a limited way, where as small export firms and tiny manufacturing units are not doing any ecommerce due to lack of awareness, affordability and lack of local software developers for
creation and maintenance. The computer literacy levels are also found wanting in majority of the tiny manufacturing firms and are still manually maintaining books, ledgers and other operations leading to employee drudgery. Most of the designers are not trained in advanced designing software like CAD/ CAM as such cluster firms are offering lower fees for their service.
PMD-Division
31
3.3.9 Associations
The MEFs and MAFs are either members of All India Carpet Manufacturers Association (AICMA) or All India Carpet Exporters Association (AICEA)/ Mirzapur Carpet Durries and Exporters Association(MCDEA). However the cohesiveness among the association members of AICEA and MCDEA is found to be poor. The tiny Manufacturing Firms are not having any association.
The major issues, the suggested solutions and the required BDS providers for upgrading the business operations in the cluster are given as below:
PMD-Division
32
Table 3.10 : Analysis of Key Issues and Suggested Solutions in Business Operations
BDS Areas Merchant Export Firms (MEFs) Lack of direct linkage with woollen suppliers by majority of the firms Major Issues Manufacturing Export Firms (MAFs) High price fluctuations No collective purchase mechanism Suggested Solutions Tiny Manufacturing Firms (TMFs) No collective purchase mechanism High price fluctuations Non availability of raw material on time Required BDS providers / Facilitators Raw material suppliers from Bikaner, Malda and Banglore Association DIC, DCMSME, DC-H and Banks Raw Material Suppliers, Associations
Raw Material
Interactive meet with raw material suppliers for common procurement Sensitization and formation of raw material consortia
Awareness workshops on alternative raw materials like synthetic fiber, nylon acrylic etc
Interactive meets with Machinery suppliers Exposure visits to Iran & China Interface with technical experts Technological demonstration of advanced Dyeing, Finishing machines and broad looms
Technology
Limited access to advanced technologies in Chemical & Mechanical Finishing
Limited access to advanced technologies in Chemical & Mechanical Finishing Limited knowledge about the technological advancements and processing techniques
Limited access to advanced technologies in weaving (Looms) Limited knowledge about the technological advancements and processing techniques
Machinery suppliers, IICT, IIHT, BIDA, MSME-DI, DC-H DIC, MSME-DI, Machinery Suppliers, IICT
Marketing
Poor emphasis on domestic market and its requirements Exploitation by buying agents Limited e-commerce by small exporters
Poor emphasis on domestic market and its requirements Exploitation by buying agents Late delivery of the goods affecting the repeated orders
Limited direct market linkage
Organising buyer seller meets
Participation in international trade fairs with the help of CEPC

Creation of web portal Sensitization to establish common display cum warehouse centre
CEPC, Associations, DC-H, DC-MSME Web portal developers, Export Consultants, Associations, DC-H/ DC-MSME
Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi BDS Areas Merchant Export Firms (MEFs) HRD . Major Issues Manufacturing Export Firms (MAFs) lack of awareness on legal/regulatory issues Suggested Solutions Tiny Manufacturing Firms (TMFs) lack of awareness on legal/regulatory issues lack of Training facilities for weavers Limited entrepreneurial capabilities Required BDS providers / Facilitators Legal Consultants, CEPC, DIC
Quality
Lack of awareness on quality control in dyeing, finishing Limited awareness on quality certification
Lack of awareness on quality control in dyeing, finishing and weaving,
Finance
Inadequate/ lack of working capital finance High labour advance payments
Lack of awareness on quality control in weaving Limited awareness on quality certification Inadequate/ lack of working capital finance High labour advance payments
Organising work shops on legal & regulatory norms Organising training programmes on advanced practices on weaving & finishing for weavers/ Skilled workers Sensitization programmes for establishment of training centre Trainings for Women in semi-automatic motorised ratts Conducting EDP programmes through NGOs/ IICT/ MSME-DIs by promoting agencies like NABARD/ DCH Conducting awareness programmes on Quality control norms Facilitation the MAFs , MEFs in obtaining ISO certification
BHU, BIDA, DC-MSME
NGOs, IICT,MSME-DI, NABARD,DCH and IICT
Quality consultants, BIS, IICT
Organising bankers meet with awareness on CGTMSE Organising awareness programmes on Schemes promoted by SIDBI and other Government departments/ Ministries
Introducing new loan products
Banks/FIs, DIC, auditing firms, Management consultants
PMD-Division
34
Energy & Environment
Irregular power supply Poor utilization of generators leading to high fuel consumption High pollution levels in Dye Houses utilised by cluster firms
Irregular power supply Poor utilization of generators leading to high fuel consumption High pollution levels in Dye Houses utilised by cluster firms
Poor Ergonomics
ICT
Lack of awareness on advanced design development software
Low computer literacy levels Lack of awareness on advanced design development software Poor cohesiveness among association members .
Low computer literacy levels
Associations
Poor cohesiveness among association members
Lack of association
Others
Lack of awareness on Government Schemes like PMEGP, Scholarships for weaver families etc
Awareness programmes on renewable energy systems Organising workshops on energy efficiency Conducting sensitizing programmes on pollution control Sensitization programmes on Ergonomics Piloting of upgradation of ergonomics in 10 TMFs Organising computer basic courses Organising training programmes on computer aided Design and Concept development Capacity building of associations by organising awareness work shops and seminars Organising awareness programmes on Government Schemes
MNRES, TERI, BMOs Energy auditors / TCOs PCB, Environment consultants Architects, Environment Consultants, WSC, IICT
IT firms, NGOs, DC-H, NABARD NIFT, NID, Private design institutions.
Associations, DIC, BIDA, NABARD
NGOs, DIC, DC-H, BIDA, KVIC
The major pressure points observed in the cluster are: o Lack of trained personnel in weaving and finishing for MAFS, TMFs, weavers and dye houses o o o o Limited knowledge for designers situated at Bhadohi on new software tools in design development Non availability of working capital for TMFs Poor adoption of Quality Control norms by dye houses leading to threat for closure of the units Limited use of alternative raw materials like acrylic, poly propylene to capture domestic market PMD-Division
35
Chapter 4 DERIVATION
4.1: SWOT The SWOT analysis of the cluster is given as below:
Sl. No. 1. Parameter Markets Strength Established International brand image Twinning with Panipat cluster firms in marketing Reasonable job work market for tiny manufacturing firms from export houses Weakness Poor emphasis on domestic market and its requirements Exploitation by buying agents Late delivery of the goods affecting the repeated orders Limited e-commerce by small exporters Limited direct market linkage by Tiny Manufacturing Firms Opportunity Good domestic market potential with price as the deciding factor Good potential for Joint market efforts to tap the domestic & International market Threat Shrinking knotted carpet market due to dominance of tufted & Shaggy carpets Competition from Iran, China and Pakistan Competition from machine made carpet industry Changing customer preferences i.e., wool to synthetic/Acrylic. Threat from automated tufting carpet industry Competition from Iran due to use of natural colours, hand spun yarn and ethnicity
Technology
Availability of local fabricated low cost machinery Good networking with raw material suppliers Cluster is famous for its knotting process
Limited access to advanced technologies in Chemical, Mechanical Finishing and weaving Limited knowledge about the technological advancements and processing techniques Limited usage of natural colours and hand spun yarn
Advent of latest technology in weaving, tufting and latexing with the intervention of IICT, IIT and foreign machinery suppliers Prospects for establishing common design cum warehouse center at cluster by association and Government bodies Access to technology transfers from China, Iran, Pakistan and Nepal Cost reduction and quality enhancement by use of appropriate technology/QMS.
PMD-Division
37
Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi Sl. No. 3 Parameter Raw Materials Strength Local Presence of woolen, cotton cloth, dyes and chemical suppliers Weakness Lack of direct linkage with woolen yarn manufacturers by majority of the firms No collective purchase mechanism Lack of standardized dyeing machine suppliers Opportunity Available institutional support like IICT may be exploited. Proactive Government Schemes for common raw material procurement and establishment of raw material bank Threat High price fluctuations in the cost of Woollen yarn, cotton and dyes & chemical prices due to seasonal availability and ban on certain ingredients Cheap quality material flow from the foreign countries Labour Migration to lucrative alternative livelihoods
HRD
Most of the job learnt while doing
Quality
Few export firms are having ISO certification
Finance
Presence of banks and FIs with in the cluster
Minimum energy requirement in the weaving process
Lack of trained personnel in weaving & finishing lack of awareness on legal/regulatory issues lack of Training facilities for weavers Limited entrepreneurial capabilities Limited skill sets of women artisans Lack of awareness on quality control in dyeing, finishing and weaving Limited awareness on quality certification Inadequate/ lack of working capital finance High labour advance payments Lack of awareness on Government Schemes No execution of bulk orders in group mode leading to higher production costs Irregular power supply Poor utilization of generators leading to high fuel consumption High pollution levels in Dye Houses utilised by cluster firms Poor Ergonomics
Proactive Government Schems like HRD Scheme of DC-H for skill upgradation and EDPs
Presence of Government schemes like PMEGP, TUFS etc.
Global economic recession effecting cash flows
Availability of alternative energy resources
PMD-Division
38
Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi Sl. No. 8 Parameter ICT Strength Local presence of IT institutions Weakness Low computer literacy levels Lack of awareness on advanced design development soft wares Poor cohesiveness among the association members Lack of association for tiny manufacturers Limited role of association in raw material procurement and execution of bulk orders Lack of awareness on strategic BDS providers in the areas of QC, Energy & Environment etc by cluster firms Limited local presence of BDS providers Very poor linkage with embedded BDS providers in technology and input supply Opportunity Availability of customised design softwares in design development and general management practices Establishment of infrastructure or common facilities on PPP mode Threat
Associations
Presence associations export firms
of for
10
BDS Providers
Established Market for Generic BDS providers like transporters, shipping agents etc., Willingness of the cluster firms for adopting Demand driven BDS providers
Favourable Government Policies for service providers Growing demand for BDS providers
PMD-Division
39
4.2 Cluster Map
COMMERCIAL SERVICE PROVIDERS

PTI (2) FLDiz (100) NIFT & NID DHs (300) IICT CSTRI CEPC SC (250) TC IIHT Banks (21) WSC
CORE CLUSTER FIRMS B A C K W A R D L I N K A G E S

AICYSDA Raw Material Suppliers a) Woolen Yarn (20) b) Cotton Yarn (50) c) Cotton cloth (20) d) Dyes & Chemicals (20)
Buyers MCDEA AICMA AICEA
Merchant Exports Firms (800) / Manufacturing Export Firms (20)

Tiny Manufacturing units (1000) Weavers / Jobworkers
F O R W A R D
Buying Agents (40)
Machinery Suppliers (10)
L I N K A G E S
SIDBI
DIC
MSME-DI
NABARD
DRDA
DC-H
PCB
BIDA
ITC (2)
SUPPORT INSTITUTIONS
PMD-Division
40
Abbreviations:
1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) 21) 22) 23) AICMA : All India Carpet Manufacturers Association AICEA : All India Carpet Exporters Association MCDEA: Mirzapur Carpet Durries Exporters Association AICYSDA: All India Carpet Yarn Spinners & Dealers Association SIDBI: Small Industries Development Bank of India MSME-DI : Micro, Small & Medium Enterprise Development Institute DIC: District Industries Centre NABARD : National Bank for Agriculture and Rural Development BIDA : Bhadohi Industrial Development Authority DCH : Development Commissioner, Hanidcrafts PCB : Pollution Control Board DRDA : District Rural Development Agency PTI: Private Training Institute ITC : Industrial Training Centre FLDiz: Freelance Designers DHs : Dye Houses NIFT/ NID: National Institute of Fashion Technology/ National Institute of Design CEPC : Carpet Export Promotion Council CSTRI : Central Silk Testing & Research Institute IICT : Indian Institute of Car[pet Technology WSC/ IIHT: Weavers Service Centre/ Indian Institute of Handloom Technology TC: Textile Committee SC: Sub Contractors
Explanation of Current Cluster Map 1. Arrows with doted line showed the weaker linkage 2. Arrows with continuous line showed the stronger linkage 3. The continuous line with two sided arrow indicated a very strong linkage 4. Solid square between manufacturing firms and export houses, reflects strong linkage
PMD-Division
41
4.3: Vision of the cluster
To position Bhadohi cluster as preferred destination for ethnic floor coverings through enhanced and sustainable BDS and adhering to global quality standards by 2011
For the controlled sample firms with whom the project will work are expected to attend the following objectives: 4.4: Long & Short run objectives Long-run Objectives Penetration into the domestic market Reduction in pollution levels by dye houses Adoption of renewable energy resources Improved international market share Sustainable employment generation and increase in their income levels by 18-20% Increase in cluster turnover by 12-15% Increase in number BDS providers by 16-18% Increase in BDS turnover by 10% Establish raw material bank through DC-MSME/ DC-Handicrafts Establishing a display centre cum warehouse to be funded by DC-Handicrafts/ DCMSME ISO Certification for 30% of Merchant Export Firms. Strong Linkage with Banks & FIs Short-run Objectives (1st year) Creation of web portal and BDS directory Capacity building of skilled workers in weaving and finishing To empower dye houses on compliance of quality control norms Capacity building of designers and dyers to meet cluster requirements Improved linkage with banks and FIs Participation in international trade fairs for direct marketing by cluster firms Facilitating in submission for proposal for Training Centre, Display cum Warehouse centre PMD-Division
42
4.5: Suggestive Action Plan Area Raw Material Key Issues Lack of direct linkage with woollen suppliers by majority of the firms High price fluctuations No collective purchase mechanism Non availability of raw material on time Suggested Interventions Interactive meet with raw material suppliers for common procurement Sensitization and formation of raw material consortia Awareness workshops on alternative raw materials like synthetic fiber, nylon acrylic etc Interactive meets with M/C suppliers Exposure visit to China & Iran Interface with technical experts
Technological demonstration of advanced Dyeing, Finishing machines and broad looms
Target Stake Holders MAFs, TMFs
MAFs, TMFs MEFs, MAFs, TMFs TMFs & weavers TMFs & weavers All cluster firms
Technology
Limited access to advanced technologies in weaving, Chemical & Mechanical Finishing Limited knowledge about the technological advancements and processing techniques
Marketing
Poor emphasis on domestic market and its requirements Exploitation by buying agents Limited e-commerce by small exporters Limited direct market linkages
HRD
lack of awareness on legal/regulatory issues lack of Training facilities for weavers Limited entrepreneurial capabilities
Organising buyer seller meets in cluster Participation in international trade fairs with the help of CEPC Participation in domestic exhibitions & trade fairs Creation of web portal, Web directory and BDS directory Sensitization to establish common display cum warehouse centre Organising work shops on legal & regulatory norms Organising training programmes on advanced practices on weaving & finishing for weavers/ Skilled workers Sensitization programmes for establishment of Common training centre Conducting training programme for women in semiautomatic motorised ratts Conducting EDP programmes through NGOs/ IICT/ MSMEDIs by promoting agencies like NABARD/ DCH
MEFs, MAFs, TMFs CEPC TMFs TMFs & Weavers All cluster firms MEFs and MAFs MEFs and TMFs
All cluster firms Women weavers TMFs and Weavers
PMD-Division
43
Area Quality
Key Issues Lack of awareness on quality control in dyeing, weaving and finishing Limited awareness on quality certification Inadequate/ lack of working capital finance High labour advance payments Lack of awareness on Government Schemes like PMEGP, Scholarships for weaver families etc
Suggested Interventions Conducting awareness programmes on Quality control norms Piloting of quality certifications in 10 firms Organising bankers meet with awareness on CGTMSE Introducing new loan products Organising awareness programmes on Schemes promoted by SIDBI and other Government departments/ Ministries
Target Stake Holders Dye Houses, MEFS, MAFergonS, TMFs TMFs & Weavers TMFs & Weavers All cluster firms TMFs & Weavers
Finance
Irregular power supply Poor utilization of generators leading to high fuel consumption High pollution levels in Dye Houses utilised by cluster firms Poor Ergonomics
Awareness programmes on renewable energy systems Organising workshops on energy efficiency Conducting sensitizing programmes on pollution control Sensitization programmes on Ergonomics Piloting of upgradation of ergonomics in 5 TMFs & 5 Weavers Organising computer basic courses Organising training programmes on Design and Concept development Capacity building of associations by organising awareness work shops and seminars
MEFS, MAFs, Dye houses Dye Houses and MEFs Dye Houses & MAFs TMFs & Weavers TMFs and Weavers TMFs and selected weavers Designers
ICT
Low computer literacy levels Lack of awareness on advanced design development software
Associations
Poor cohesiveness among association members Lack of association for TMFs/ weavers
Associations & TMFs
PMD-Division
44
Annexure - 1 Location Map

Bhadohi district is situated in the planes of the river Ganges, with it's borders touching districts like Allahabad, Varanasi, Mirjapur and Jaunpur. The total area is 1055.99 sq. kms. It's lattitudenal limits are from 25.12o North to 25.32o North and longitudenal limits are from 82.12o East to 82.42o East. The Ganges, Varuna and Morva are the main rivers. Bhadohi is 50 Km. away from the Varanasi city, 80 Kms from Allahabad and 280 Kms. from Lucknow, the capital of Uttar Pradesh. The district is divided into three(03) Tehsils namely Aurai, bhadohi and Gyanpur and six(06) blocks namely Bhadohi, Suriyavan, Gyanpur, Deegh, Abholi and Aurai. Administratively, the district is controlled by Gyanpur division. Bhadohi is well connected by rail and road. The weaving and carpet related work spread in all the villages of the District. Location map of the cluster :The total cluster spread is 50 Kms in the districts of Bhadohi and
Mirjapur.
Map OF BHADOHI
PMD-Division
45
Map of Mirzapur District : Areas of Concentration of Floor covering manufacturing firms
PMD-Division
46
Annexure - 2 Knotted Carpet Production Process Flow Chart

MAKING OF BALL FROM COTTON YARN FIXING OF TWO RODS ON GROUND AT A WARPING ON RODS LIFTING OF WARP FROM ROD TO STEEL ROD CARRYING OF WARP FOR MOUNTING MOUNTING ON LOOM WARP SETTING GULLY KAMANA SETTING SHEDDING
KHATI CHUNNAN
KNOT SETTING MEASUREMENT & CONTROL OF PILE HEIGHT,
WEFT SETTING (THARRI & LACHHI)
DELOOM OF CARPET
CLEANING & WASHING OF CARPET MECHANICAL FINISHING
QUALITY CHECKING
PACKING
PMD-Division
47
Annexure 3
Proposed Interventions with Tentative Time lines

S. No .
1
BDS Areas
Suggested Interventions 1 2
Tentative Time Line (Quarter wise) 3 4 5 6 7 8 9 10
Cluster Associations
Capacity building of associations by organizing awareness workshops and seminars
Raw Material
Interactive meet with raw material suppliers for common procurement Sensitization and formation of raw material consortia Awareness workshops on alternative raw materials like synthetic fiber, nylon acrylic etc Interactive meets with M/C suppliers Exposure visit to China & Iran Interface with technical experts
Technological demonstration of advanced Dyeing, Finishing machines and broad looms
Technology
Marketing
Organising buyer seller meets Participation in international trade fairs with the help of CEPC and Participation in domestic exhibitions & trade fairs Creation of web portal & Web Directory Sensitization to establish common display cum warehouse centre Organising work shops on legal & regulatory norms Sensitization programmes for establishment of training centre Organising training programmes on advanced PMD-Division
HRD
48
Quality
practices on weaving & finishing for weavers/ Skilled workers Conducting EDP programmes Conducting training programmes for women on Motorised ratt Conducting awareness programmes on Quality control norms Piloting of quality certifications in 10 firms Organising bankers meet with awareness on CGTMSE Conducting loan melas and Introducing new loan products Organising awareness programmes on Schemes promoted by SIDBI and other Government departments/ Ministries Awareness programmes on renewable energy systems Organising workshops on energy efficiency Conducting sensitizing programmes on pollution control Sensitization programmes on Ergonomics
Finance
Piloting of upgradation of ergonomics in 10 TMFs

9 ICT
Organising computer basic courses Organising training programmes on computer aided Design and Concept development
PMD-Division
49
Annexure 4
List of Respondents
1. Manufacturing Export firms S.No. 1 2 3 4 5 6 7 8 9 10 Contact person Mr. Ravi Patodia Mr. Abdul Hadi Mr. H.NSrivastava Mr. Avinash Chandra Baranwal Mr.Bholanath Baranwal Mr.Jalil Ansari Md. Ahmad Mr. Rajput Singh Mr. Pradeep Srivastava Mr.Surya Mani Tiwari Name & Address of the Firm Patodia Exports , Bhadohi M/s Hadi Exports Bhadohi Ms ABC Pvt. Ltd., Mirzapur East WQest Trading Corporation Bholanath International,Bhadohi TajMahal Carpets, Bhadohi Best Oriental Carpets,Bhadohi Rajput Carpets, Mirzapur Ram International, Bhadohi Surya Carpets Pvt. Ltd Ugapur, Bhadohi Contact No. 09919802525 09839809929 NA 09335785082 09984600670 NA 09415975344 05442221801 09794889312 05414-268253
2. Merchant Export firms, Tiny Manufacturers & Sub Contractors S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Contact person Mr. Ashok Mishra Mtr. Shadab Ansari Mr. Qamruddin Ansari Mr. Rakesh Kumar Mr. Ashfaque Ansari Mr. Shaukat Ali Ansari Mr. Ranjit Singh Mr. Rajiv Kumar Kothari Mr. Arif Ansari Mr. Akhtar Ali Mr. Mahfuj Alam Mr. Abdul Jalil Mr. Sabir Ali Ansari Mtr. ShADAB Ansari Md. Ali Mr. Faquir Alam Mr. Reyaj Ansari Mr. Najm Ansari Mr Hamid Ansari Mr. Ajam Ahmad Khan Mr. A. Ali Mr. Nasir Ahmad Mr Arshad Mr. Adil Ansari Mr. Payambar Ansari Mr Sachin Jayswal Mr. Shamim Ansari Mr. Jayaswal Mr. Rajesh Bhalla Mr. Fida Ansarri Mr Zaheer Alam Name & Address of the Firm Surya Exports, Ugapur Bhadohi Shadab Exports, Chauri Road Bhadohi Kay International Pvt. Ltd, Bhadohi M.A.Majeed & Sons Pvt, Ltd. Bhadohi Kaji Export, Kajipur Bhadohi Diamond Carpet Corporation, Bhadohi Singh Enterprises, Aurai Varanasi Carpets Arif Export Civil Lines Bhadohi Florex Carpet Manufacturing Parsipur Bhadohi Arshee Exports, Bhadohi Mughal ExportsBhadohi Carpet Exporter, Bhadohi Shadab Exports, Chauri Road Bhadohi Rana Carpet Industries Bhadohi Alam Brothers, Bhadohi Teppich World Pvt Ltd, Bhadohi Aneesa Carpet, Bhadohi Ansari Continental Bhadohi Ejaj Carpet Bhadohi Ansari & Associates Ansari Floor Covers, Bhadohi Art Edge Bhadohi Ansari & Ansari Bhadohi Madni Handicrafts Chandauli Lucky Export Bhadohi Bokhara Palace Bhadohi Kas Carpet Bhadohi Bhalla Carpet, Bhadohi Deluxe Carpets, Bhadohi Decorative Carpet Bhadohi Contact No. 09935322536 09336624425 NA NA 09335774783 05414 243380 05414- 243441 05414 243263 NA NA 05414- 271265 05414 273010 05414 -271255 NA 05414 234625 05414 254553 NA 05414 255853 05414278531 05414 225676 NA NA NA NA 09415294716 NA 05414 226591 A 05414- 225361 05414 225365 05414- 225622
PMD-Division
50
Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi 32 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Mr Danish Ansari Mr. Mahtab Ansari Mr. Ramesh Ohrii Mr. Azmat Siddiqui Mr. Yaseen Ansari Mr. Masoom Siddiqui Mr. Feroz Ansari Mr. Naeem Ansari Mr. Akthar Ali Ansari Mr. Faheem Ahmed Mr. Mumtaz Ansari Mr. Naushad Ahmed Shamsher Ansari Mr. Muzaffar Ansari Mr. Imam Ansari Mr. Dastagir Ansari Mr. Jahid Ansari Mr. Raj Kumar Mr. S. Pal Mr. Mohammad Ameen Mr. Arun Kumar Sharma Ansari Exports, Bhadohi Naeem Carpets, Bhadohi M/s Ram International, Bhadohi M/s Oriental Carpets, Bhadohi M/s Yaessn & Bro, Chanduali, Sub Contractors M/s Siddiqui & Bro Sub Contractors, Chandauli Sub Contractors, Chandauli Sub Contractors, Chandauli Sub Contractors, Chandauli Sub Contractors, Mirjapur Sub Contractors, Chunar Sub Contractors, Naraynpur, Mirjapur Sub Contractors, Chandauli M/s Muzaffar & Sons, Tiny Manufacturer, Chandauli Sub Contractors, Chandauli M/s Shaheed Crpets, Chandauli, Tiny Manufacturer M/s Madni Carpets, Chandauli, Tiny Manufacturer M/s Varanasi Carpets, Tiny Manufacturer M/s Mahesh Carpets, Varanasi M/s Super Carpet, Kachma, Mirjapur, Tiny Manufacturer M/s Sharma Carpets, Babusarai, Maharajgunj NA 09415453120 NA 09369572403 NA NA NA 09793226394 09793433032 09936178535 NA NA 09335533832 09336646277 NA 09936050739 NA 0542242336 NA 05442282247 05414262223
NA= Not Available 3. BDS providers and support Institutions S.No. Contact person Name & Address of the Firm 1 Mr. Shrikanth Guptha M/s Star Dyeing, Bhadohi 2 Mr. SI Mishra M/s Manoj Dyers, Bhadohi 3 Mr. Rajesh Yadav M/s Rajesh Dyers, Bhadohi 4 Mr. SB Yadav M/s S Dyeing, Bhadohi 5 Mr. Tabrej Ansari M/s Allauddin Shipping Sevices Pvt. Ltd., Bhadohi 6 Mr. Afroz Ansari M/s Overseas Cybercafe & Courrier Service 7 Mr. Sanjay M/s Adarsh New Transport Pvt. Ltd., Bhadohi 8 Mr. Rinku Singh M/s Safe Cargo Pvt. Ltd, Bhadohi 9 Mr. Rajbali M/s Rajbali Dyers, Pachuual, Ashtabuja, Bhadohi 10 Mr. Rajesh M/s Rajesh Dyers, Pachuual, Ashtabuja, Bhadohi 11 Mr. S. Jaiswal M/s Raj Dyeing House, Jairampur, Bhadohi 12 Mr. Anand M/s AS Dyers, Jairampur, Bhdohi 13 Mr. Sisir Agarwal M/s Swastic Dyers, Mirjapur 14 Mr HN Srivastav M/s Annapurna Carpets, Mirjapur 15 Mr. Rajesh Jadav M/s Satyam Yarn Dyers, Mirjapur
Contact No. 9305904249 09415375613 NA NA 09336699431 NA 09889122426 09984243488 NA NA NA NA NA NA NA
Type Dyer Dyer Dyer Dyer SA ICT TPS SA Dyer Dyer Dyer Dyer Dyer Dyer Dyer
PMD-Division
51
Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Mr. Jaiswal Mr. Rashid Ansari Mr. Mahendra Kumar Yadav Mr. AK Thukral Mr. Fakhre Alam Mr. S. Ganguly Mr. Shaukat Ansari Mr. Akhlaque Ansari Mr. Naseem Ansari Mr. Sanjay Singh Dr. Gowswami, Director Mr. MK Majumdar Mr. Ramesh Singh Mr. Joginder Verma Mr. Hali Kumar Jain Mr. Sultan Ansari Mr. Vijay Kumar Perwal Mr. Amit Kumar Jain Mr. Shankar Lal Daga Mr. Kishan Kumar Aurora Mr. Qutubuddin Ansari Mr. Jainuddin Ansari Mr. Maniram Mr. Ramesh Kothari M/s BC Yarn Dyers, Bhadohi M/s MAMB Woolens Ltd., Bhadohi M/s Raju Dyers, Bhadohi M/s AK Thukral & Co., Bhadohi Free Lancer Free Lancer, C/o Chinmay Kala Niketan, Varanasi M/s Overseas Shipping Services M/s BK Woolens Pvt. Ltd., Bhadohi Free Lancer, Varanasi M/s Kas Dyeing, Bhadohi IICT, Bhadohi CSTRI, Varanasi M/s Bikaner Woolens, Bhadohi CL Verma & Co, Bhadohi M/s GS Yarn Traders, Bhadohi M/s Sultan & Sons M/s Mahesh Woolen rading Co., Mirjapur M/s Raj Wooltex, Mirjapur Mirjapur M/s Aurora Bro, Bhadohi NA NA 09838819725 05414-225251 NA NA 09307940706 NA NA 09793559714 05414225504 NA 09838644931 05414228220 05414225295 NA 09415231261 09839883637 09839156216 05414225789 Dyer Dyer Dyer AF DZ DZ SA Dyer DZ Dyer TI TL Spinner Spinner Spinner RS RS RS RS RS RS RS RS RS SA
M/s Ansari uppliers, Chandauli 093356437 Chandauli NA M/s Maniram & Bro, Bhadohi NA M/s Bhagwati Trading Co., 09414142805 Bhadohi 40 Mr. Miraj Ansari M/s Overseas Marine & Transport 05414227705 Co., Bhadohi SA=Shiiping Agent: RS = Raw Material Suppliers & Dealers: TL: Technical Labs DZ = Designer 4. BMOs S.No. Contact person 1 Mr. Ravi Patodia, President Mr.Abdu l Hadi, Secretary 2 Mr. Bholath Bharnwal , President 3 Mr. Rajput Singh President 4 Mr. Kamruddin Ansari, President
Name & Address of the Firm AICMA, Kaleen Bhavan Maryadapatti, Bhadohi EUPEA, Varanasi AICEA, Mirjapur AICYSDA, Bhadohi
Contact No. 05414225760 09984600670 05442221801 05414225358
Government & Line Departments 1- Dr. K.K.Goswami, Director , IICT, Bhadohi. 2- Mr. Rajiv Kumar, AGM, SIDBI, Varanasi. 3- Mr. Vijay Sinha, Asst. Director, CEPC, Bhadohi.
PMD-Division
52
Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi 4- Mr. Umesh Singh, GM , DIC, Gyanpur , Bhadohi. 5- MR. B.D. Chaturvedi, A.D.Handicrafts, Varanasi. 6- Mr. B.S.Singh, H.P.O., O/o AD (HC) ,Hukulganj, Varanasi. 7- Mr. S.K.Mishra, H.P.O.,O/o AD (HC) Office,Sonia, Varanasi. 8- Mr. Mohammad Shahid, LDM, UBI, Gyanpur 9- Mr. Pradeep Srivastava, M/S Ram International , Bhadohi. 10- Mr. Rajendra Prasad, representative of AICMA, Bhadohi. 11- Mr. Radheshyam, Officer, GM, DIC, Gyanpur, Bhadohi. 12- M. Amitabh Ranjan Das, Mark. Manager, BIDA, Bhadohi. 13- Mr. Tiwari, Manager, Central Bank of India, Bhadohi 14- Mr. Radhesham Verma, Asst. Manager, DIC, Gyanpur 15- Mr. OP Singh, CDA, BIDA 16- Mr. KD Mishra, GM, DIC, Mirjapur 17- Mr. Bhansidar Pandey, Asst. Manager, DC, Mirjapur 18- Mr. AK Shukla, DD, WSC, Varanasi 19- Mr. KP Verma, ADH, Varanasi 20- Mr. SP Sapatnekar, Director IC, IIHT 21- Mr. BB Singh, Dt. Statistical Officer, Gyanpur 22- Mr. VB Vahan, JD, DOI and CEO, BIDA 23- Mr. Mohammad Azimuddin, RO, Handloom House, Varanasi 24- Mr. SS Sharma, Director, Jana Sikshana Samsthan NOTE:- Besides above stakeholders 50 weavers in Bhadohi, Mirzapur,Varanasi and Chandauli areas have been surveyed through structured questionnaires and focused group discussion.
PMD-Division
53
Annexure 5
Questionnaries
I. Diagnostic Study Questionnaire Floor Coverings (For Export Manufacturers/ Composite Manufacturers / Tufting Firms) Name of the Unit Respondent Name: Position: Age: Address: Ph No: E-mail: Certifications: A. Enterprise Detail: 1. Ownership pattern: (Please tick) (i) Proprietorship (ii) Co-operative (iii) Public Ltd.
Qualification: Cell No: Fax No:
(iv) Partnership (v) Private Ltd. (vi) Any other (Please specify)
2. Nature of the Unit: (Please tick)

(i) Registered (ii) Unregistered Floor area: ___________ Sq. Ft
3. Year of establishment: 4. Factory Premises: Own / Rented; 5. Products Produced:

Product 1.Tufted Carpets 2. Knotted Carpets 3. Floor Mating 4.Any Others (Specify)
Production (in Quantities / in Meters)
Value (in lakhs)
6. Investment in plant & machinery (Rs. In lakhs) :

(i) (ii) Initial Present : :
7. Employment:
Type Managerial Supervisory Workers Contractual labourers Men Category Women Average Salary / Wages
PMD-Division
54
8. The unit is doing: Jobwork / own production 9. Product segment catered to: (Please tick)
(i) (ii) (iii) (iv) (v) (vi) Traders Large Manufacturers Retailers Agents Exporters Others
B. Raw Material: 1. Raw material Requirement:

Products Woolen Yarn Type of Raw material Requirement of quantity in Kg/month Price/kg Production/Month Wastage Cotton Yarn Others
2. Raw Material Sourcing : (Please tick) (i) Direct (ii) Through Traders (iii) Domestic (iv) Import 3. Trend in Raw Material price (in last 5 years): (Please tick) a) Increased b) Decreased c) Remained stagnant 4. What type of technical service provided by the raw material supplier. 5. Please mention 3 most important problems related to raw materials/raw material suppliers ___________________________________________________________________ 6. Does the enterprise has obtained any assistance from the institutions or departments to solve the above problems? 7. Do you foresee any possibility of creating a raw material bank? ___________________________________________________________________ C. Backward-Forward linkages Backward Linkage
1. Where from do you get the Machinery & Accessories

Within the cluster Within the State Outside the State PMD-Division
55
Forward Linkages
1. 2. 3. 4.
Facilities for dyeing? Facilities for printing? Facilities for processing / finishing? Do you have any testing facilities?
Yes / No Yes / No Yes / No Yes / No
D. Production & Technology: 1. Brief Production Process
2. Production / day (in mtrs.): ______________________________________________ 3. Capacity utilization: (i) Present: _____________(ii) 5 Years back __________________ 4. Reason for lower capacity Utilisation :
(i) Power cut (iv) Raw material shortage (ii) Seasonality factor (v) Market demand/others (iii) Labour shortage
5. Details of machinery:
Type of Machines No of machines Indigenous Imported Source
6. Availability of Spares, Servicing and Repairs

With in the cluster Spares Servicing Repairs Outside the cluster (specify)
7. What are the main problems with the production equipment or with the Process of
Production?
8. Has the enterprise diversified / upgraded its products or process? Give examples with
the role played by the institutions / suppliers / others involved in the activity.
9. Does the enterprise specialize in whole or part of the production process? How did the
specialization developed?
10. Where did the owners / employees receive the basic training? 11. What type of training programmes attended and Name of the institutions / organizations
involved
12. Are there significant problems with the availability of skilled labour and imparting skill
development training of the enterprises workforce.
13. What type of facilities you are providing to the workforce. 14. Please mention 3 most critical challenges in Production & Technology
___________________________________________________________________ PMD-Division
56
Finance:
1. What is the principle source of finance for working capital and interest rates?
(i) Own (ii) Bank loan (iii) Money lenders (iv) Customers advance (v) Loan from friends/relatives (vi) Others
2. Do you face any problem related to availability of term loan / working capital loan?
Yes / No If yes, please indicate (i) Non availability of term loan / working capital loan (ii) Procedural complications (iii) Delay in sanction / disbursement (iv) Any other
3. a) Do you receive credit facility from RM suppliers? Yes / No

If yes, for how many days: ___________________________ b) Do you need to provide credit to your customers? Yes / No If yes, for how many days: ___________________________
4. Please mention 3 most critical challenges in Finance & accounts

___________________________________________________________________ ___________________________________________________________________
5. Is profitability in your business

a) Increasing b) Decreasing c) Remaining Stagnant E. Marketing: 1. Where do you sell your products?
Market Local With in the State Within the country Export Percentage
2. Marketing Channels
a) b) c) d) e) Direct Agents Traders Exporter Any other (please specify) __________________________________________
3. Have you noticed any changes in customer perception about your product?
Yes/ No If yes, a) Please indicate the nature of changes_____________________________________ b) Measures you have taken to match these changes_____________________________ ___________________________________________________________________ Are you selling products in your own brand? Yes / No If no, Why? ___________________________________________________________________ PMD-Division
57
4. Are you exporting directly or through exporter?
Yes / No If no, Why? ___________________________________________________________________ Who are the main competitors? ___________________________________________________________________
5. Please mention 5 most critical challenges you face in marketing.(Selection / Design/

Prices of product / Transportation cost / lack of export credit) ___________________________________________________________________
6. Do you agree with the idea of joint marketing?

___________________________________________________________________ F. Human Resources:
1. Do you face any problem regarding availability of skilled workers?
Yes / No If yes, please indicate the nature of problem a) availability b) skill c) absenteeism d) others, please specify ________________________________________________
2. Do you envisage requirement of any training facility / programme to ensure availability of

skilled worker? ___________________________________________________________________ 3. Whether you depute your technical manpower for training / exposure visit? Yes / No Ifyes,where? _________________________________________________________ Benefits:- _______________________________________________________ G. Infrastructure Related: 1. Please give your opinion on the following factors?
Infrastructure Road Power Water for Industrial use Remarks
2. Do you face any problem related to power cuts?
Yes / No If yes, how do you manage? ___________________________________________________________________
3. Any presence of common facility in the cluster? Yes / No

a) If yes, please elaborate on the nature of facility ___________________________________________________________________ b) If no, please elaborate whether CFC is required in your cluster and why? ___________________________________________________________________ Also indicate what kind of facilities / machinery / testing instrument needed in the CFC. ___________________________________________________________________ H. Government Schemes: PMD-Division
58
a) Awareness on Central Govt. schemes/details of subsidy availed 1. Technology Up-gradation Scheme : ___________________________________ 2. Credit Link Capital Subsidy Scheme (CLCSS) : _________________________ 3. PMEGP : _______________________________ 4. CGTS 5. Others : _______________________________ 6. Difficulties in availing subsidy from the Govt.: ______________________________ b) Awareness of State Govt. & other schemes I. Association Related:
1. Is there any industry association in your cluster?
Yes / No If yes, please mention the name(s) of the association(s). ___________________________________________________________________
2. Are you a member of any industry association?
Yes / No If yes, please specify the name of the association ___________________________________________________________________
3. What help or service you receive from them (association)?

___________________________________________________________________
4. How these services are financed/organized?

___________________________________________________________________
5. What other support you look forward to from the association?

_____________________________________________________________________
6. Efforts made by the association if any, in:

Remarks Marketing (such as organising buyer-seller meet, exposure visit etc.) Infrastructure (such as road, water, drainage etc.) Common Facility Centre (such as training facility, testing facility, etc.) Technology upgradation (such as new technology, technology demonstrations,etc.) Awareness programme on Govt. policies Raw material bank Engaging BDS Any other, please specify
J. BDS 1. Please inform about the availability of the following types of BDS in your cluster (With name & Address) : a) Technology : b) Marketing : c) Export : d) Packaging : e) Human Resources/ : Skill Development f) Transportation : Design : g) Tax Related : 59 PMD-Division
Energy & Environment: h) Others, please specify: 1.1 Awareness Of services a). Have you made use of any of the above services? b). Are their any other services that you are aware of that is not listed above? c) Are you aware where you could purchase these services ?
Yes No 1 2
1.2 Purchase behavior a) Did you pay every time you use these services?
Paid every time Paid sometimes and got free sometimes Free every time Others (specify) 1 2 3 4
b) What benefits did you get for the amount you paid for the service? (mention separately for each BDS) c) How satisfied were you with the service you used the last time? (separately for each BDS)
Extremely dissatisfied Somewhat dissatisfied Somehow satisfied Very satisfied 1 2 3 4
d) From your experience, how satisfied are you with the service provider? (separately for each BDS)
Extremely dissatisfied Somewhat dissatisfied Somehow satisfied Very satisfied 1 2 3 4
1.3 Reasons for using the service 1. Please tell why you decided to use this particular service? (separately for each BDS) 1.1 If more than one reason, Which is the most important reason to you? (Tick the proper answer)
PMD-Division
60
2. If the service is not available to you, what would you do? (separately for each BDS) My business was growing and needed the service I saw a problem in my business that needed outside help It was free A friend/colleague recommended it Others (specify)
2. What kind of improvements would this service need to make to make it more beneficial
to your business? (separately for each BDS) 1.4 General
1. Whether the available services are reaching to all the enterprises of the cluster or is it
restricted to only a few? If restricted to only a few, then what are the reasons? a) High Price b) Lack of local presence c) Not suitable to my requirements d) Any others
2. What problem do you see with the existing modes of delivery of these BDS?
(Please tick the proper reason) a) Delayed Delivery b) Poor Quality c) High Price d) Any Others
3. What improvements do you suggest to make the services more effective?

a) BDS utilization on group mode b) Capacity building of the existing BDS to suit cluster requirements c) Any others
4. Do services, which are not available to you, affect your business prospects? In what way
will your business grow if those services are provided to you? a) Improved scale of operations b) Expanded geographic reach c) Product Value addition, Diversification d) Any Others
5. If these services were made available to you as per your requirements then would you
be willing to pay a fee for these services
Interviewers Comments
Place : Date :
Signature of Interviewer Name & Designation
: :
PMD-Division
61
II. Diagnostic Study Questionnaire Floor Coverings (For BDS Providers) PROJECT: SIDBI-BDS Market Development DATE: Respondent Name: Position: Physical Address: Telephone No: Cell No: Interviewers Name: Length of Interview: A Basic information about the supplier Unit Name (if any) Type of enterprise: Private/ Government / NGO/ Technical Institute Working for profit or non-profit Main sources of income fees, grants from governments and other sources B Types of services offered in general and to the cluster in particular What services does the organisation offer? What specific services/products do you offer to the sub-sector in general and to the cluster enterprises in particular? Are services to the sub-sector your main activity or supplementary/complementary activities? If supplementary, then what are your main activities? C Transaction-related information How do you offer these services? The delivery mechanisms of the service What has been the outreach of various services provided by you? Are you satisfied with the outreach? yes or No If no, why? What do you feel about the impact created by the provision of various services by your organisation for enterprise? How can the services be offered to create the desired impact? How many enterprises visit you on daily/ monthly basis? Do you charge fees for these services? What are the fees for different services? PMD-Division FIELD Questionnaire No:
62
What are the payment options available for these services?
D. Perception on services According to you, which service is more in demand? Why? Is subsidisation of services important or could these services be offered on a commercial basis. If yes, why? If no, why? Why do a majority of enterprises fail to use the services provided by you? Do you see the role of commercial service provider for these enterprises(If respondent id Public Service Provider)? If yes, what are the services that have potential to be commercialised? What suggestions would you make to commercialise these services? In your opinion, what are the constraints in the BDS market for MSMEs in general and enterprises in the cluster in particular? In your view what are the problems/factors that might hamper the development of a vibrant BDS market for MSMEs in general and cluster in particular? What needs to done to remove those problems? What changes in terms of features and delivery is needed to make the services more effective? E. In-house capacity What kind of support do you obtain from other sources to serve MSMEs in general and this cluster enterprises in particular? Are there any systems in your organisation by which you obtain feedback from enterprises about the services you offer? If yes, how do you use these information and for what purposes? Do you undertake some market surveys and market research to improve the quality of service and to develop new products? If yes, how frequently? Do you have any future plans to provide other services to the cluster enterprises? What are they? Number of staff members involved with respective services Qualification of staff members for respective services
PMD-Division
63

Bhadoi DS

Caricato da

Informazioni sul documento

Descrizione originale:

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Bhadoi DS

Caricato da

Copyright:

Formati disponibili

DRAFT DIAGNOSTIC STUDY REPORT

FLOOR COVERINGS CLUSTER BHADOHI, UP

PMD DIVISION SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

HYDERABAD JULY 2009

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

20 800 1000 290000

Major BDS Providers

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

( Yarn dyeing in the cluster )

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

2.3: History of the cluster 2.3.1 Milestones/ Turning Points PMD-Division

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Distribution of artisan credit/ health cards

Participation in trade fairs and exhibitions

BIDA/ DIC/ DCMSME

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

BIDA/ DIC/ DCMSME

Proposal submitted by DIC/BIDA to DCMSME 10% hike in weaver wages

Interventions need to be initiated at the earliest

AICMA/ Export Firms

Lead Bank UBI

30 Candidates trained / year

Increase more number of candidates

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

3674.86 3524.73 2708.73 807.94

(Source: Ministry of commerce) PMD-Division

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

2.4.3 Description of Benchmark Cluster

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Merchant Export Firms (MEFs)

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

BDS Access to finance

Testing Capacity Building

New Design and concept development

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Bhadohi Warp Pile 2 kg. 3.5 kg/ gauge(16KG) 3 KG/ Gauge

Bijar 2 kg. 3.5 kg/ gauge(16KG) 3 KG/ Gauge

5 KG 16 KG 4.5 Gauge 4.5 gauge 4.5 gauge

5 KG 16 KG 4.5 Gauge 4.5 gauge 4.5 gauge

80 30 550/ Gauge 30/ Gauge 50/ Gauge 50/ Pc 100/ Pc

60 80 400/ Gg 25/Gg 40/Gg 50/Pc 80

400 480 2475 135 225 50 100

300 1280 1800 113 180 50 80

2640 3120 5595 5730 5955 6005 6105 6105 8547

2060 3340 5140 5253 5433 5483 5563 5563 7789

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

weaving. Office of WSC is located in Varanasi.

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi

Draft Diagnostic Survey Report Floor Coverings Cluster - Bhadohi