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Topic: Handicrafts: - PESTLE Analysis
No serious and lasting achievement or success one ever achieves without the
friendly guidance and co-operation of so many people involved in work.
Foremost of all, I express my gratitude to the Almighty for his blessings and for
vesting wisdom in all my wishes.
I am also thankful to my Subject Teacher Miss Maneet kaur, who has helped me
a lot each and every time when I had some difficulty. Words are not sufficient to
register my sincere regards to my loving parents for their deep affection and
unabated inspiration that really kept me going. They were and unending source of
strength and perseverance during the course of the study. I place my thanks to all
those who spared their time and made it convenient for me to complete the
research. I deeply acknowledge their concern for my research. Last but not the
least, I also wish to red cord my gratitude for any person(s), my memory has failed
to recall, who rendered his/her/their support and services.
Yours faithfully
(Priya Kapil)
TABLE OF CONTENTS
(K) Conclusion 26
Bibliography 27
Besides, trading in the local markets, Indian handicrafts are also exported across
the globe. Each work of art reflects the adroitness and emotions of the craftsmen
which have made the work more close to heart apart from being an exclusive show
piece.
India is one of the important suppliers of handicrafts to the world market. The
Indian handicrafts industry is highly labor intensive cottage based industry and
decentralized, being spread all over the country in rural and urban areas.
Numerous artisans are engaged in crafts work on part-time basis. The industry
provides employment to over six million artisans (including those in carpet trade),
which include a large number of women and people belonging to the weaker
sections of the society.
INTRODUCTION:-
Handicrafts are unique expressions and represent a culture, tradition and heritage
of a country. The Handicraft Industry is one of the important productive sectors.
Various attempts have been made to define this broad and diversified industry. The
following definition strives to cover diversity and complexity of Handicraft
Industry.
DEFINTION:
Handicraft can be defined, which is made by hand; should have some artistic
value; they may or may not have functional utility.
Importance of Handicrafts:
• The Cultural Importance: Handicrafts play very important role in
representing the culture and traditions of any country or region. Handicrafts
are a substantial medium to preserve of rich traditional art, heritage and
culture, traditional skills and talents which are associated with people’s
lifestyle and history.
Industry Analysis
India is a country of rich culture, history and traditions. India is one of the
major producer and supplier of Handicrafts products in the world. India has
been major producer and supplier of handicrafts products since very long time.
Before the industrial development, this art and industry was a potential
economic advantage for the country.
During recent years, the importance of handicrafts has been surged due to their
cultural and financial values. The small-scale industries including handicrafts
can play a major role in the development of the economy of both developed
and the developing countries equally. The 90-95% of the total industrial
products of the world is produced in small workshops run by less than 100
people. For instance, Japan, which is at the peak of the economic
development, has considered 84% of its industries as small and medium scale
industries. In countries such as India and China, handicrafts are as high as the
mechanized products in quality and volume, and are a major source of their
foreign earnings. These countries are focusing on the development of
handicraft industry, in order to strengthen the economy.
The Indian handicrafts industry is highly labour intensive, cottage based and
decentralized industry. The industry is spread all over the country mainly in
rural and urban areas. Most of the manufacturing units are located in rural and
small towns, and there is huge market potential in all Indian cities and abroad.
Handicraft industry is a major source of income for rural communities
employing over six million artisans including a large number of women and
people belonging to the weaker sections of the society.
The Handicraft sector is highly creative sector and produces large variety of
crafts products. This industry is localized segment of the domestic and
international market. In India the production of craft products are done on both
large and small scale. Because of low capital investment people can start their
business on small scale. Through this flexibility the demand and supply can be
managed Hough Indian Handicraft industry is considered a cottage industry,
but it has evolved as one of the major revenue generator over the years. There
has been consistent growth of 15% over few years and the industry has
evolved as one of the major contributor for export and foreign revenue
generation.
There is huge demand for the Indian Handicraft products in both national and
international market. To match the demand and supply with quality, there is need
to have greater technological support and innovativeness with the uniqueness in
industry.
• India’s rich cultural diversity and heritage provides a unique and huge
resource for developing craft products.
• In spite of having diversified products, some part of Indian market are still
untapped and market is price sensitive.
• Products are high priced in big and metro cities, which are beyond, reach of
people belonging middle and lower middle class.
• Craft producers have to compete on price, quality and delivery for different
segments.
• There is lack of awareness about new traditions and among craftsmen and
there is need of technological support and training.
Handicrafts are classified into several categories:
Metal ware, Wood ware, Hand printed textiles, Embroidered and crocheted goods,
Shawls, Carpets, Bamboo products, Zari goods, Imitation jewellery, Paintings,
Earthenware, Jute products, Marble Sculpture, Bronze Sculpture, Leather Products
and other (are u going to produce all these ) miscellaneous handicrafts.
Hand printed textiles including block and screen printing, batik, kalamkari (hand
printing by pen) and bandhani (tie and die) are used in products ranging from bed-
covers to sheets, dress material to upholstery and tapestry. The famous
embroidered articles of silk and cotton often embellished with mirrors, shells,
beads, and metallic pieces are also found in India. Embroidery is done too on
leather, felt and velvet etc. .
Woodwork:
Wooden articles in India range from the ornately carved to the absolutely simple.
One can find toys, furniture, decorative articles, etc. bearing the art and
individuality of the craftsman. India is known particularly for its lacquered wood
articles.
Stone Craft:
The intricately carved stoneware made of marble, alabaster or soapstone, etc.,
inlaid with semiprecious stones carry on the heritage of Indian stone crafts.
Glass and ceramic products are a fast upcoming segment in the handicrafts from
India. The age-old production process of mouth-blowing the glass instills a
nostalgic feeling. The varied shapes of ceramic and glass in a number of colours,
would appeal to Western aesthetics while retaining the Indian touch.
SWOT Analysis
Strengths:
Opportunities:
Artmetalware :
Embroidered goods:
Although each crafts pockets has its particular problems, a few selected craft
pockets are identified based on their past performance for immediate remedial
attention to stimulate a quantum in exports of handicrafts in the coming years.
Jodhpur (Raj.) : For Wooden, Wrought Iron and Sea Shell handicrafts
The major buyers for handicrafts (other than carpets) are as under:
Hand Printed & Textiles & Scarves: U.S.A., U.K. , Germany & Canada
Zari & Zari goods: U.K. U.S.A., Japan & Saudi Value Adding Chain in Handicrafts
Major Destinations for Indian Handicrafts
(% sh are in1998-99)
U.S.A. U.K.
32% 11%
Switzerland Others
1% 22%
Australia
Saudi Arabia
2%
2%
Canada
Netherlands JapanItaly
Germany France 3%
3% 4% 4% 11% 5%
1. Spinning Industry
India Spinning Industry has gone from strength to strength since a very long time
now as it was the hub of cotton manufacturing. Cotton is not only consumed to the
highest extent in India but it has also become one of the most profitable textiles in
the export industry.
Spinning in India can be classified into 2 categories: -Medium and long staple. But
there was a shortfall in the ‘extra-long’ category that continued for many years.
There was a massive downfall in the cotton spinning in India during 2004-2005.
This will not only motivate the farmers but will also make them stick to the desired
sector of cotton crop.
Some of the popular companies engaged in the India Spinning Industry are listed
below:
Nitin Spinners Ltd. - manufactures single and multi-fold yarns in the range
from Ne 4 to Ne 40 appropriate for various applications such as Knitted
Fabrics, Woven Fabrics, Terry Towels, Denims, Furnishing Fabrics, carpets
and other Industrial Fabrics.
The Spinning Industry in India is on set to hit the global market with other fabrics
as well like the cotton textiles with its enthusiasm and consistency in work. It has
already reached a phenomenal status in India by beating the obstacles that caused a
downfall since past few years and is now on its way to cover a wider area in the
spinning sector.
2. Woodwork Industry
The wooden handicraft of India is draped with a vast cultural and ethnic diversity
which is applied to a range of themes, techniques and crafts. These wooden
handicrafts are unique in their own style and are claimed to be an absolute
personification of the Indian heritage. India Woodwork Industry has not only
specialized in serving architectural purpose but also manufactures furniture both in
traditional as well as ultramodern style.
In the rural areas of India, furniture and other household utensils are carved out of
wood in different shapes and styles. These simple objects are so uniquely blend
that they in no way look like daily use stuffs. Animal figures are also an excellent
example of India's ethnic woodwork. These wide ranging exclusive styles adopted
by the India woodwork industry to carve out various tape flying objects are
prepared in different parts of India. Some of the most well-known states of India
are Gujarat, Kashmir, Saharanpur (UP), Hoshiyarpur, Kerala, West Bengal, and
Bihar.
Gujarat - Famous for woodwork in carved chests, admirals, and wooden swings.
The wooden swings vary from plain Hewn wood to lavishly embellished ones.
There is also a tradition of embedding indigenously made gold, silver, and bronze
hues on wood in a place called Snakehead village in Gujarat. Surat, another place
in Gujarat, is well-known for its marquetry-work which is called as 'Sadeli' by
local people.
Kashmir- Famous for its exclusive Kashmir houseboat made out of a specially
mollified wood that does not soak in water. Also, the houses in Kashmir are made
of wood with latticework windows and geometrically patterned ceilings.
Hoshiarpur (Punjab) - Gained immense popularity for carving inlaying ivory
which is now replaced with plastic to cut down on the cost. Wooden furniture,
trays, and mirror frames are usually crafted using intricate designs that were
claimed to be the royal patronage ages back.
Saharanpur (U.P) - The leading place for commercial purposes. Sheesham and
Teak are the chief woods used for manufacturing traditional as well as
contemporary designed products-screens, cigarette boxes, tables, trivets, bookends,
and so on. Of late, Saharanpur is dealing with wood seasoning only.
Other areas - West Bengal, Bihar, Orissa and Andhra Pradesh are also engaged in
carving out various uniquely designed items out of wood.
India Woodwork Industry uses various kinds of woods, for example, Walnut,
Sandalwood, Teak, Sheesham, Deodar, Ebony, Redwood, Rosewood, Red, Cedar,
Sal, and many more. Recently, embedding of brass wires (Tarkashi) has gained lot
of attention worldwide. India has set up over 3,000 woodworking units and the
number is increasing with the passage of time.
3. Metalworks Industry
Metal work is an age-old tradition in India. Indian Metalwork’s Industry has been
reigning successfully since last 5000 years from now. The beautiful image of the
dancing girl from Mohanjodaro is one of the most outstanding works of the Indian
Metalwork’s Industry.
Metal works in India had used a wide array of metals, such as, iron, copper, silver,
and alloys like bronze, bell metal, white metal, and etc to manufacture items like
pots, pan, utensils, photo frames, and figurines of deities, mythological characters
and animals.
Indian Metal works Industry has reached the level of excellence in craftsmanship
with its exclusive works. One of such example is the iron pillar at Mehrauli (Delhi)
which belongs to the Mauryan. The craftsmen during Cholas period mastered at
bronze sculptures.
Traditional vessels of iron and brass are the specialty of Ladakh in Kashmir.
Kashmir is also well-known for other metal works, especially the richly graven
traditional household items such as, bowls, samovars, plates and trays. In 'Naqasi',
epicurean floral and calligraphic designs are embossed on copper and silver pieces.
Figurines of deities and household utensils are some popular metal works in
Banaras.
A nomadic tribe called Godiya Lohar in Rajasthan crafts iron utensils for regular
use and those who mastered in craftsmanship makes idols, lamps, and curios.
Jaipur prides its craftsmanship in brass engraving and lacquering. Items carved out
of these metals are photo frames, bowls, plates, boxes, and etc. The art of
Koftagari or damascening work is practiced at Alwar. Other states that bears fame
for beautiful and ethnic metal works are Madhya Pradesh, Andhra Pradesh, Orissa
and Tamil Nadu.
Flat metal products are highly manufactured by SAIL, Tata Steel, Ispat Industries,
Jindal Group of Industries, and Uttam Steel and Bhushan Steel.
Indian Metalworks Industry has acquired a commendable status not only in India
but also in foreign states by selling its unique products in the local as well as in the
global market.
Wooden handicrafts are specialized skills passed on from one generation to the
next. The term 'wooden handicrafts' refers to a wide range of wooden items
carrying utilitarian and artistic value that are made by hand, or with the use of
simple tools.
Indian wooden handicrafts are much sought after the world over, and form an
important export commodity of India. Although India's handicraft exports show a
consistent increase of fifteen percent every year, its share in the international
market is not more than two percent.
The Indian wooden handicraft sector is the second largest employment provider
(after agriculture). It employs about six million artisans. Women constitute a large
section of the handicrafts industry, including people belonging to the weaker
sections of society.
Source of Information
Methodology Adopted:
Research plan was developed through conclusive research design using descriptive
research analysis methods by survey as detailed below:
Research Approach:
PESTLE Analysis:
Second, good use of PESTEL Analysis helps us avoid taking action that is doomed
to failure from the outset, for reasons beyond your control; and
Third, PESTEL is useful when you start operating in a new country or region. Use
of PESTEL helps us break free of unconscious assumptions, and helps us quickly
adapt to the realities of the new environment.
The table below lists some possible factors that could indicate important
environmental influences for a business under the PESTEL headings:
Labour Requirements
Handicraft is a labour intensive product and it is all depend upon labour only and
all kind of labour requirements are there like in this we need skilled , semi
skilled and unskilled workers. So total requirements are as follows:
Salary (Rs.)
Employees Number
Per day Per month Annually
Production
1 - 5000 60000
Supervisor
Accountant 1 - 5000 60000
Skilled 54000*5 =
5 150 4500
Workers 2,70,000
Semi skilled 45000*8 =
8 125 3750
Workers 3,60,000
Unskilled 36000*3 =
3 100 3,000
workers 1,08,000
Peon 1 - 2,500 30,000
Guard 1 - 2,500 30,000
Total 20 9,18,000
Strategy to appoint & retain employees
Housing facility: I will provide labour quarter to skilled worker who are not
from local areas.
SALES FORECASTING
SALES FORECAST
Year 2009 2010 2011
Sales 3288000 3562000 3836000
Conclusion:
The Indian Handicraft Industry stands a unique place among all other industries. It
represents the rich culture, tradition and heritage of India. India’s rich cultural
diversity and heritage provides a unique and huge resource for developing craft
products. The Indian Handicraft Industry is showing continuous growth rate of
15% every year and it is one of the most important segment of decentralized sector
in India.
Most of the part of industry operates in rural and semi urban areas throughout the
country and have large and potential in Indian & International market. Indian
Handicraft Industry provides wide range of products because of country’s
diversified culture, traditions and heritage. There is huge demand of Indian
Handicraft products in international market. Industry provides ample opportunities
for employment to people belonging to backward and weaker classes of society.
However, Indian Handicraft Industry has the status of cottage industry in India, but
it has shown promising growth and evolved as one of the major revenue generator
over the years. It has shown continuous growth at the rate of 15-20% over the
years and contributes major role for export and foreign earnings.
Low capital investment, Cheap and skilled labour, Diversified product portfolio,
Flexible Production are few important features of Indian Handicraft Industry.
However, Lack of Infrastructure & Technological support, Lack of awareness of
international and new trends and Poor Promotional campaigns are a few drawbacks
of industry which needs to be overcome. It is estimated that Handicraft Industry in
India is all set to grow with rapid rate in future and contribute its share towards
economic development handsomely.
Bibliography:-
• www.handicrafts.np.org
• http://www.Articlesbase.com
• Search In Index
• www.indianhandicraftexporter.com
• www.google.co.in
• www.wikipedia.com
• www.yahoo.com
• www.ori.nic.in
• www.answers.com
• www.handicraftdpr.htm