KHADI AND VILLAGE INDUSTRY COMMISSION

Objectives• The broad objectives that the

KVIC has set before it are...The social objective of providing employment.

• The economic objective of producing saleable articles.

• The wider objective of creating self-reliance amongst the poor and building up of a strong rural community spirit.

• The Khadi and Village Industries Commission (KVIC) is a:

Statutory body

Established by an Act of Parliament (No. 61 of 1956, as amended by act no. 12 of 1987 and Act No.10 of 2006.

In April 1957, it took over the

work of former All India Khadi and Village Industries Board.

Resource:http://www.kvic.org.in/index.php?option=com_content&view=article&id=257&Itemid=147

FUNCTIONS• Plan and organize training.

• Supply raw materials or arrange raw materials (common service facilities)

• Promote Sale and Marketing.

• To provide Financial assistance directly or through specified agencies.

• To promote and encourage cooperative efforts.

• To encourage and promote research in the technology used in KVI.

Suggestions• Capacity building to those persons who

engaged or likely to be engaged in production of handspun yarn or khadi or village industries.

• Will organize more number of Fair (Khadi Mela) for e.g. Ranchi khadi fair

http://articles.timesofindia.indiatimes.com/2011-12-22/ranchi/30546230_1_stalls-ranchi-gears-village-industries-commission

• Engage more number of NGO’s in the training and implementation of programs.

• Convergence of all stake holders, directly or indirectly.

Organizational set up• KVIC is functioning under the administrative control of the Ministry of

Micro, Small and Medium Enterprises• The Commission is having its Head Office at Mumbai and six Zonal

Offices located in Delhi, Bhopal, Bangalore, Kolkata, Mumbai and Guwahati.

• 29 State Offices to facilitate speedy implementation of KVI programmes.• At the Head Office, different Directorates have been established in order

to coordinate the functions like training, marketing, funding, economic research and Rural Employment Generation Programme (REGP) etc.

• http://planningcommission.nic.in/plans/planrel/fiveyr/10th/volume2/v2_ch5_4.pdf

GROUPING OF INDUSTRIES While the khadi programme comprises hand spun and hand

woven cotton, woollen, muslin and silk varieties, the village industry programmes have been classified into seven broad groups. These are:

Ø Mineral Based Industry; Ø Forest Based Industry; Ø Agro Based and Food Processing Industry; Ø Polymer and Chemical Based Industry; Ø Rural Engineering and Bio Technology Industry; Ø Hand Made Paper & Fibre Industry; andØ Service Industry. • http://msme.gov.in/Chapter%205-Eng_200708.pdf

BUDGETARY SUPPORT TO KVIC

ONLY ONE RESOURCE…….?• The Union Government

through the Ministry of Micro, Small and Medium Enterprises, provides funds to KVIC for undertaking its various activities

http://planningcommission.nic.in/plans/planrel/fiveyr/10th/volume2/v2_ch5_4.pdf

SUGGETIONS• Stop making strategies on providing

direct funds to entrepreneur.• Involve NGO’s and marketing

institution.• Link with private big players like

Pantaloon, ITC, HUL, P&G, Big Bazaar, Reliance etc,,

• NAFED• Organize events on the basis of PPP

model.• Link with corporate and work

through CSR activities.

……CHALLENGE……

VILLAGE INDUSTRY PRODUCTS TO URBAN

MORE ENTREPRENEURALDEMANDING PRODUCTS

VILLAGE INDUSTRY PRODUCTS

URBAN

URBAN

EXISTING CHANNEL• Training activities through its 38

departmental and non departmental training centres.

• Marketing is taken up through 12 departmentally run Khadi Gramodyog Bhawans located in urban areas and

• 7050 institutional/retail sales outlets spread over different parts of the country.

• KVIC also makes available quality raw material to khadi institutions through its six Central Sliver Plants (CSP)

SUGGETIONS• YOU ARE NOT LIKE PANTALOON….• YOU ARE NOT LIKE ITC…..• YOU ARE NOT HAVING FUND LIKE RELIANCE.....THEN, HOW CAN YOU SOLVE ISSUES LIKE: Branding of productProduct quality and its importance in marketing strategyDistribution strategies of product companies ……IF NOT

THEN WHY URBAN CONSUMER WILL BUY YOUR PRODUCTS?

THAT’S WHY……• NEED TO CHANGE THE MARKETING STRATEGY….• NEED TO LINK YOUR PRODUCTS WITH URBAN

MORE DEMANDING RETAIL SHOPS, GO WITH ITC, HUL etc., for BRANDING, PACKAGING AND

MARKETING….• TARGET ARMY CANTEENS AND OTHER PUBLIC

CANTEENS

MORE ENTREPRENEURAL

EXISTING SCHEMES: RURAL EMPLOYMENT GENERATION PROGRAMME

(REGP)Main objective: To generate additional

employment opportunities in rural areas through setting up micro enterprises

Eligible beneficiaries: Individuals (rural artisans/entrepreneurs), and institutions, cooperative societies, trusts & Self Help Groups (SHGs) for projects costing up to Rs. 25 lakh.

EXISTING SCHEMES:REBATE SCHEME

Main objective: make khadi & khadi products more competitive than other textiles.

Normal rebate (10 per cent) all through the year and an additional special rebate (10 per cent) for 108 days in a year, is given to the customers from funds made available through budgetary support of the Ministry.

The rebate is allowed only on the sales made by the institutions/centres run by the KVIC/State KVIBs

MORE ENTREPRENEURAL

EXISTING SCHEMES:PRODUCT DEVELOPMENT, DESIGN INTERVENTION &

PACKAGING (PRODIP) SCHEMEMain Objective: For the improvement in product

quality, introduction of new designs and better packaging.

Under this scheme, financial assistance is provided to the institutions or entrepreneurs affiliated to the KVIC or State KVIBs up to Rs. 2 lakh per project per year or 75 per cent of the project cost whichever is less.

As an ‘add-on’ benefit without any extra premium

Up to two school going children of insured artisans studying in class nine to twelve are also eligible to get a scholarship of Rs. 100/- each per month, under the scheme.

EXISTING SCHEMES:RURAL INDUSTRIES SERVICE CENTRES (RISC) SCHEME

Main Objective: To provide infrastructural support and services to selected units to upgrade their production capacity, skills and market promotion.

Under this scheme, financial assistance for establishing projects up to Rs. 5 lakh is provided to KVI units.

KHADI KARIGAR JANASHREE BEEMA YOJNA (JBY)

Main Objective: To provide insurance cover to khadi artisans in group.

Formulated by KVIC in association with the Life Insurance Corporation of India (LIC) with annual premium of Rs. 200/- per beneficiary.

SUGGETIONS

• Stop compromising with the products,• Stop providing subsidies,• Provide value added services,• For making competitive products, work on the

quality of the product,• Cost cut strategies,• Link products to those who individually

produce same products.

DEMANDING PRODCTS

INCREASE QUALITY WITH LOW COST• In order to improve the quality of raw

material in khadi sector, KVIC has been operating its 6 CSPs at Kuttur, Chitradurga, Sehore, Raibareilly, Etah and Hajipur.

Suggestions:• Increase CSPs in Maharashtra, AP &

TN.• Adopt new technologies with good

training.• Stop providing subsidies.• Educational trips to learn new

techniques and knowing consumer choice.

ATTRACTIVE MARKETING• Apart from promoting sales of khadi

and village industries products through its network of Khadi Gramodyog Bhavans (KGB) and retail sales outlets, efforts have been made to organise a number of exhibitions, in different parts of the country as a cost effective publicity and market promotion instrument.

Suggestions: • online promotion with purchasing

option.• Collaboration with famous designers.• Maximum use of Television.

Always doing…..in low level.

………THANK YOU………

Mohammad AzharMBA-Rural Management

Class of 2012C-block, 4th floor Sector-125

Amity University - Noida-201301UP, India+91 9953151810

Blog: http://blogs.siliconindia.com/AZHAR

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