Document79

Diagnostic Study for Development of Zari Embroidery WorksCluster at Budge Budge-II Block and Surrounding areas of

South 24 Parganas District of West Bengal under.

Small Industries Cluster Development Programme.(SICDP)

Prepared bySri Dipak Kumar Kundu

Cluster Development Executive&

Manager (Credit) District Industries Center, South 24 Parganas.

1. THE CLUSTER AND ITS PRODUCTS

Budge – Budge – II Block, the centre for zari embroidery works Cluster is situated in

the district of South 24 Parganas and is neary 40 KM away from Kolkata. There is

wide network of roads with in the Block H.Q. of Budge – Budge – II is at vill. & P.O.

Dongaria, dist. South 24 Paraganas which is about 14 KM away from the nearest rail

station at Budge-Budge. Zari embroidery industries are located at all the

Grmpanchayat area of Budge – II dev Block but it is mainly concentrated at

Gajapoali, Dongaria Raipur & Kashipur Alampur Grampanchayat. It has also spread

over at the contiguous Block of Budge – Budge – I Bishnupur –I, Bishnupur – II and

Falta Block.

Cluster Product :- The embellishing handicraft work of zari embroidery is being done

on the following dress materials in the cluster.

(i) saree (80%) (ii) salwar / Kameez

(iii) Langar / Ghagra (iv) Churidar

(v) Punjabi (vi) Curtains

(vii) Other dress materials like Scarf Etc.

Among the above products zari embroidered Saree is the main product of the

Cluster. Zari embroidered dress materials have very good potential in the domestic

market as well as in the export market. The distinguishing features of the products of

the Cluster in its low price in compare to other Cluster.

2. HISTORICAL EVOLUTION OF CLUSTER AND ITS TURNING POINTS

From the description of Indian we have learnt that use of zari embroidery was an

indispensable part of the dress work by the king & queen. The history of this industry

dates back to past several centuries. Over the years the industry has fared

numerous problems including the threat of extinction but the strong will of crafts

person and the enterprising spirit of some of the people has kept the industry alive in

the face of many onslaughts.

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Before 1968, there was no existence of zari embroidery industry within Budge – II

block area. The economy of this Block was fully based on agriculture. The common

people had to face absolute poverty due to uncertainty of rain and other natural

incidents. Theft, dacoity was the regular event of that area. In 1960, one Sk Samser

Ali of vill. Baratala fled away to Ajmer, Rajasthan due to bad relation with his kith and

kin and took shelter in a family whose members were engaged on zari embroidery

work. He learnt this craft attentively and came back home on 1968. His footstep in

the soil of Budge-Budge had made a revolutionary change in the socio-economic

condition of Budge –

Budge-II. He imparted training to a few people of this locality along with his family

members and started his new venture at Baratala. On account of his previous

linkage with the market his factory was going to flourish day by day. A few years later

he shifted his factory to Kolkata for better prospect. But this event did no harm to the

growth of zari embroidery craft as its root had already started to spread into deep.

Thereafter his brother Sk Naosher Ali and some other disciples had been continuing

this work. From this time this craftsmanship had been growing day by day without

any declining trend and became popular means of lively-hood among the people of

Budge-Budge-II, Bishnupur_I & Bishnupur-II and Falta Block area centering Baratala

& Poali as its nucleus. But the growth of the industry became faster since 1998 due

to major boom of demand in the domestic as well as in export market.

Gradually house hold units emerged on account of low Investment in plant and

machinery and increasing no of crafts person. Master crafts person became the

traders and the main linkage to the market. Now they are supplying design and

saree to the household units and pay for the charges incurred by them as per

previous contract. Despite low wages the house holds units are interested to do the

job work as it can be done with the help of all members using sparable time and to

raise their income level to some extent. They don’t have to think over marketing

issues. At present 4000 house hold units involving 12000 crafts persons and 500

enterprises involving 8000 workers are in operation. Still now the household units do

not take the help of modern technique of manufacturing process. With the

introduction of contemporary design inputs, strategies market positioning, the

gearing up of the institutional infrastructure the cluster with its unique job work can

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face global competition by becoming competitive on account of its tremendous

potential in niche market.

3 NATIONAL AND INTERNATIONAL SCENARIO

Introduction

The handicrafts sector is one of the most vital sectors of our economy, both for

generating employment as well as earning foreign exchange for the country. Zari &

embroidery cluster is also an important part of this sector. It is not only highly labour

intensive but decentralized, having a spread all over the country in the rural & urban

areas. It sustains weaker section of the society, including women.

Raw Material Production Centre

Surat is the home of zari industry in India. It makes embroidery materials for machine

and hand embroidery viz zari thread / kesab, nakshi, salmo, sadi, kangri and badle.

Woven trimmings, flat trimmings, metallic trimmings, fringes, metallic fringes in

different colour and different widths are made. Sequin collar and motifs in elegant

colours and designs are also made. These enhance the beauty of garments.

Accessories are also made for a variety of uses.

There are three types of Zari. Real Zari is made of silver and electro plated with gold.

Zari thread made from this precious metal is used for sarees embroidered apparel

etc. Imitation zari is made from copper. A third variety of zari is called plastic zari

which is made from metallic yarn.

Production Zari in Surat

Year Products Value

2001-02 450 crore

2002-03 380 crore

2003-04 335 crore

2004-05 275 crore

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At present total production of zari raw material in India is about Rs. 500 crore. About

55% of these zari raw materials is catered by Surat. Excect Surat zari raw materials

are produced at Barielley, Varanasi, Agra, Jaipur & Barmer.

Typologies of Zari produced at Surat

Type Percentage of production

Imitation zari 85%

Real zari 10%

Metallic/Plastic zari 5%

Principal production centre in India

Principal production centre of zari embroidery dress materials are the surrounding

area at Chennai. Mysore, Bangalore, Salem, Madurai, Kanzivaram Kumbhokonam in

South, Jaipur, Delhi, Amritsar, Varanasi, Lucknow in North, Kolkata in east and

Mumbai, Nagpur, Surat in the west. 80 to 85% of raw materials produced at Surat is

consumed at these area within the country and about 15% to 20% is sold abroad.

Most of the work on tissue fabric is done mainly in Jhansi, Jaipur, Bareilly,

Farukabad and Kutch.

3.1 International Scenario

Growing use of zari embroidery on western attire has made Indian zari goods

popular in Europe and the U.S. as the rise in exports of these embellishing products

indicate. Data given by Export promotion council for handicrafts (EPCH) is as

follows.

Export to the During the year During the year % of increase

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Country 2004-05 2005-06

Rs. In crore Rs. In crore

U.S.A. 52 94.79 82%

Italy 18.60 24.46 31.5%

U.K. 50.47 64.05 26.9%

Total export of zari products from India since 2000-01 is given below.

Years Total export Percentage

2000-01 262.07 crore -------------

2001-02 264.46 crore 00.91%

2002-03 304.46 crore 15.05%

2003-04 210.54 crore (-)30.81%

2004-05 252.28 crore 19.83%

2005-06 347.05 crore 37.57%

From the above table it is clear that the tendency to wear Indian zari embroidery

product among western women is increasing rapidly. According to EPCH Executive

Director Rakesh Kumar the Indian handicrafts, including zari and imitation jewellery

can become more popular if the American & Europe customers come face to face

with Indian artisans. Hence it may concluded that artisans of zari & embroidery

product are to be taken to western as well as middle East countries and Japan to

participate in road shows and trade fair for the sake of yielding better export

potential.

3.3 Benchmark Cluster Analysis

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On the basis of information availed from an entrepreneur of central Mumbai zari

embroidery cluster a comparative benchmark analysis is being prepared as follows.

Central Mumbai Zari embroidery cluster Budge-budge-II Zari embroidery cluster

1. Generally skilled labour earns Rs.

225/- to 275/- per day and semi skilled

labour earns Rs. 120/- per day.

2. Higher value added products are being

made.

3. Maximum enterprises use computer

aided design.

1. Generally skilled labour earns Rs. 80/-

to 120/- per day & semi skilled labour

earns Rs. 30/- to 40/- per day

2. Lower value added products are being

made more in compare to lower value

added products.

3. Use of CAD is minimum.

4. Exporters are directly linked with the

cluster.

5. Production is mainly export oriented.

6. Contemporary designs come through

exporters, Pvt. Ltd. Company etc.

7. Diversified product range.

8. Raw materials of high quality are used.

9. Presence of large no of B.D.S.

providers.

4. Exporters are not directly linked with

the cluster.

5. Production in mainly domestic market

oriented.

6. This facility does not exist.

7. Limited product range.

8. All kinds of raw materials as available

in the market are used.

9. Absence of B.D.S. providers.

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As information of Central Mumbai Zari embroidery cluster is limited another cluster of

similar type of products required for benchmark analysis. However, as Chanderi

handloom cluster is an artisan based cluster it has been choosen as benchmark. A

comparative statement regarding different aspects is as follows.

Chanderi Handloom Cluster

1. It is older cluster weaving in Chanderi

is reported ever since the Mughal regime

of Jahangir.

2. Master craftsmen / traders are

marketing the finished product.

3. There are 10 cooperative societies.

Budge-Budge-II zari embroidery cluster

1. It is newly born cluster. It has been in

operation since 1968.

2. Here also master craftsmen / traders

are marketing the product.

3. There is only one co-operative society.

4. There is association of weavers.

5. B.D.S. provider has taken a leading

role.

6. Federation of S.H.G’s manage their

own production & marketing directly.

7. Different technological institution such

as NIFT, NID are linked with the Cluster.

4. There is no association of artisan.

5. There is no B.D.S. provider.

6. No federation of S.H.G’s is there.

7. No technological institution is linked

with the cluster.

.

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Major learning from Bench mark analysis

From the above two benchmark analysis the shortcomings of Budge-Budge-II zari

embroidery cluster is revealed and the following steps may be taken for the

improvement of the cluster.

(i) Skill of the artisan is to be upgraded through training.

(ii) Cluster is to be linked with direct exporters.

(iii) CAD and other contemporary design are to be introduced.

(iv) Product ranges are to be diversified.

(v) Raw materials of high quality are to be used.

(vi) More S.H.G’s and federation of S.H.G’s are to be formed.

(vii) Different technical institution, B.D.S providers, association are to be linked.

4. CORE CLUSTER ACTORS

4.1 Principal Firms

These are two type of principal stake holders in the cluster:

(a) House hold enterprise:- About 4000 no. of house hold unit exists with 12000

craftsmen involved in these units. In these type of unit only the members of families

are engaged as worker. Lower value added products are produced here. They are

acting as sub-contractors. These craftsmen belonging to the Muslim community

(60%) and the Hindu (about 40%) largely lives at subsistence level. Only a very

small percentage of them have been able to provide good living standard to their

families ie providing education or necessary consumables. They generally manage

to earn lively hood using one or two Hadda. Average monthly income of the artisan is

Rs. 1200/-. They can engage themselves in the trade for 9 month in a year. Off-

season of the trade is from 15th May to 15th August.

(b) Tiny Enterprise:- About 500 no. of units are in operation engaging about 8000

workers. In this type of unit separate premises are used employing workers from out

side the family. These units generally produce higher value added product of high

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quality. Among these 500 units about 50 units are linked with state/national level

buyer for marketing and they have good sense of design innovation and a self built

capital base. Rest of units continue their work on sub-contracting basis. Average

income of the workers of this type of unit is from Rs. 1500/- to Rs. 3000/- per month

as per their skill. Total value addition of 38 crores takes place in the cluster on about

4.7 lakh sarees & other dress materials. Major value addition takes place on saree in

about 80%. Other important finished products are Salwar Kameez, langar (Ghagra),

Churidar, Punjabi, Curtains, other dress materials like scarf etc. these products have

a very good domestic market as well as export market. Main markets of these

products are in Rajasthan, Gujrat,U.P. Mumbai and Kolkata. These products are sold

to Kolkata based state level and national level buyer. They send these products in

the different corner of the country. About 10% to 15% of total production is exported

to foreign countries.

Investment in Plant & Machinery

Typology Name of Machinery Total investment in

Plant & Machinery

House hold unit 1 to 2 no. of wooden frame/ Rs.2000/- to Rs.4000/-

Hadda & Needle, Scissors, iron

etc.

Tiny enterprise 3 to 15 no. of wooden frame/ Rs.5000/-toRs.25000/-

Hadda & needle, scissors, iron

etc.

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Growth of other Cluster actors ( in numbers)

Typology 2001-02 2002-03 2003-04 2004-05 2005-06

Big traders 7 7 8 8 8

Medium & Small

Traders 30 34 37 45 50

Sub-agent 45 55 70 80 100

Raw material

Supplier 35 38 42 48 50

Machinery

Supplier 15 15 18 18 20

Technical

Institution X X X X X

Financial

Institution 10 10 10 11 11

Association/

Network X 2 6 12 17

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Turn over of the Cluster

Name2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

QuantityPiece

ValueCrore

QuantityPiece

ValueCrore

QuantityPiece

ValueCrore

QuantityPiece

ValueCrore

QuantityPiece

ValueCrore

House Hold Units

324000 10.53 360000 12.6 378000 13.23 39600 14.85 432000 16.4

Tiny Enterprises

27000 14.85 31500 18.00 32850 19.08 33750 20.25 36000 21.60

Total 25.38 30.60 32.31 35.10 38.00

EXPORT OF THE CLUSTER ( Rs in crore)Typology 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

House Hold Nil Nil Nil Nil NilTiny Enterprises 1.5 2.5 3 3.5 4

Total 1.5 2.5 3 3.5 4

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EMPLOYMENT SCENARIO OF THE CLUSTER

YAER

HOUSE HOLD UNIT TINY ENTERPRISESkill Artisan Semi Skilled Artisan Skilled Artisan Semi Skilled Artisan

Male Female Total Male Female Total GrandTotal

Male F Total Male F Total GrandTotal

2001-02 2000 500 2500 2000 4500 6500 9000 5000 X 5000 1000 X 1000 60002002-03 2200 600 2800 2500 4700 7200 10000 5600 X 5600 1400 X 1400 70002003-04 2300 600 2900 2600 5000 7600 10500 5700 X 5600 1600 X 1600 73002004-05 2400 700 3100 2700 5200 7900 11000 5800 X 5800 1700 X 1700 75002005-06 2500 800 3300 3000 5700 8700 12000 6000 X 6000 2000 X 2000 8000

N.B. The above reports are based on the interaction with the different type of cluster stake holders during the period of diagnostic study.

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4.2 OTHER CLUSTER STAKEHOLDER

Big traders / Master craftsmen :- There are eight nos. of big traders in the cluster.

They are presently an affluent class of the cluster. Three decades back, this

category was itself engaged in the occupation of handicraft worker but today they are

mainly traders who undertake the overall responsibility of taking orders and getting

them executed. They supply the craftsmen with saree, design and sometimes raw

materials directly or through subagents. They pay for the charges incurred by the

craftsman as per previous contract.

The traders however seem to be oblivious to the hardships of the craftsman and are

largely concerned with their own survival and growth. They also remain secretive

about their designs and trading activities. Nevertheless, this group of core actors can

prove to be instrumental in bringing about capacity building of the craftsmen

provided their outlook is made more holistic.

Besides these eight big traders there about 50 more small & medium traders in the

cluster who are trying to stand in the marketing directly with state level buyer.

Sub agent

There are about 100 sub agents in the cluster. They generally distribute & collect job

work in the different corner of cluster on behalf big & medium traders on commission

basis. Big traders generally deprive the craftsmen through these sub-agents.

Raw material supplier

Big traders supply the saree to the craftsmen. Craftsmen purchase other zari

embroidery raw material from the nearby exclusive zari embroidery shop. Credit

facilities are available in these shops. There are about 50 no. shops only for the

purpose. These raw materials suppliers procure their required raw materials through

the merchants of Barabazar which are actually produced at Surat, Gujrat.

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Machinery Supplier

No imported machineries are used in this cluster. A wooden frame called Hadda

costing Rs.1500/- (approx) is supplied by local furniture house or carpenter. There

are about 20 nos. furniture house/carpenter engaged in the work. Other tools like

needle, scissors iron etc. are supplied by the raw materials providers.

4.3 Support institutions

District Industries centre

District Industries centre is the organization which is contributing for the development

of cluster. They extend loan under PMRY of the central Government, provide training

to the rural artisan and women under the scheme R.S.V.Y. in cooperation with

district administration & zilla parisad.

Financial Institution

There are eight nationalized bank and two Gramin Bank within the cluster. They

have extended credit to the craftsmen under different priority sector scheme. Due to

poor recovery of loan, they are not so interested to further extend their credit support

to the craftsmen. For this purpose the service of SIDBI & NABARD may be

channelised and customized to meet the needs of the craftsmen. WBMDFC also

extended its credit support of Rs.5 lakh to the cluster. The master craftsmen have

built their own capital base and the small craftsman inevitably turns to the former for

his credit needs. This requires capacity building of local weavers and their families

on issues like credit creation and management of savings and innovative instruments

of financing wherever needed.

Technical Institution

There is no technical institution within the cluster. However, assistance of NIFT,

Jadavpur engineering college, Calcutta youth self employment centre (CYSFC) may

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be sought for CAD/CAM. This institution may be linked with the cluster actors for

upgrading their skills regarding innovative design, production management and

marketing management. Assistance of master craftsmen may be taken to upgrade

the skill of general craftsmen as the rejection of job may be minimized and the

quality of product is improved.

Association

Only one co-operative society in the name of Budge-Budge Block-II Zari Silpa

Samabay Samity Ltd. is formed in the month of September-2006 with 13 members.

Production and marketing is done by itself. However, it is a newly born co-operative

and couldn’t spread over the entire cluster. About 14 networks in the form of self help

groups are there although most of them are non functioning due to improper

nurturing. For the sake of improvement of socio-economic condition of the house

hold units and workers a union in the name and style of Dakshin-24 Parganas Zilla

Zari Silpi union is formed in the month of February-2006 with 106 no. of its member.

Its activity also do not spread over the entire cluster.

N.G.O.

There is an N.G.O. in the name & style of Baratala Human Welfare & Education

Society. They are working in the field of zari embroidery works. They have vast

knowledge & expertise and are already working for the socio economic development

of artisan.

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5. VALUE CHAIN ANALYSIS

Value Chain Analysis of a Saree of consumer price of Rs.900/-

The master craftsmen/traders and the General craftsmen in case of Budge-Budge-II

cluster are very important in the overall value addition process. The contribution of

different actors in the production of a plain sari of consumer price of Rs.900/- in

value is as under.

Step Activity Value (%) addition

1. Cost of cloth 22.22

2. Design 2.22

3. Other raw material for Zari

Embroidery work 8.89

4. Job-work/Handicrafts work 33.33

5. Commission of sub-agent 3.33

6. Profit of traders/master

Craftsmen 8.89

7. Transportation 0.56

8. Profit of State/national

Level trader 3.33

9. Profit of retailer 17.23

Value Chain Analysis of a Saree of Production cost Rs.9500/-

Sl no. Activity Value addition (%)

1. Cost of cloth 26.32

2. Design 2.11

3. Wages given to artisan 8.42

4. Profit of tiny enterprise 15.79

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Zari embroidery saree have been the main product of Budge-Budge-II cluster. This

has always been a favoured choice of middle and upper class women of northern

India and of the women of Muslim community throughout India. Now a days it is

turned into automatic choice of all classes of women for occasional wear, wedding

wear all over the country.

(See annex 1, 2 for diagrammatic presentation)

INTERPRETATION

From the above analysis the following interpretations are derived.

(i) Value addition due to design input is minimum. It may be increased to some

extent to make the product more competitive in the Global market.

(ii) Value of the product goes up only due to high profit margins fixed by the

traders. The reasons giving by the traders for charging such high profit

margins are:-

(a) High rate of rejections and return of goods due to poor workmanship.

(b) Frequent changes in fashion and designs.

6. ANALYSIS OF BUSINESS OPERATION

Back ground of the entrepreneur / Artisans

Big traders are presently the affluent class of the cluster, Three decades back the

category was it-self engaged in the occupation of handicraft worker, but today they

are mainly traders. Their knowledge regarding design and marketing linkage is the

soul of the cluster.

A few Tiny enterprises have some design skill and marketing linkages. But the house

hold units are the most deprived section of the cluster. They largely live at

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subsistence level. Only a very few percentage of them have been able to provide

good living standard to their families i.e. providing education or necessary

consumables. They hardly manage to earn Rs. 1200/- per artisan per month,

whereas an artisan of a tiny enterprise earns Rs. 1500/- to Rs. 3000/- per month as

their skill. Contribution of women workers ( 50 % of house hold artisans) are not

properly valued. Hence sufficient no. of skill up gradation training programme are to

be organized to raise the income level of these families. A few EDP training course

and a few awareness programme for education of the children, health are also to be

organized to sustain the development of the cluster.

Another big problem of the cluster is lack of mutual trust among the stake holders.

Campaign and some strategic soft intervention is required to build up mutual trust.

RAW MATERIALS

There are three type of raw materials used in Zari embroidery industry. Real Zari is

made of silver and electroplated with gold, Zari thread made from these precious

metals is used for Sarees embroidery apparel etc. Imitation Zari is made from

copper. A third variety of Zari is called plastic Zari which is made from metallic yarn.

Real Zari is used in costly product, but its use is minimum in the cluster Use of

imitation Zari and plastic Zari is maximum in the cluster. Sequin collar and motifs in

elegant colours and design are also made. These enhance the beauty of garments.

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The important raw materials and consumables used in the cluster are as follows:-

(a) Silk, Tasar, Zarjet, Siphon, Crape, Laser plain cloth.

(b) Resom. (h) Rambo Katdana, Katori.

(c) Solma. (i) Art Paper.

(d) Dopka. (j) Drawing Pencil.

(e) Mote. (l) Fresh Trek.

(f) Lava Powder. (m) Anker

(g) Aplic. (n) Kasob.

Among the above raw materials used in the cluster no investment is required for

plain Cloth / Saree on behalf of principal firms as these are supplied by the state

level buyer through the big traders of the cluster. Separate channel of marketing may

be opened if financing for the said purpose is arranged. Total requirement of raw

materials in the cluster is in the tune of Rs. 5 Core per annum. A lot of amount may

be saved if a common raw materials Bank is made in the cluster through a self help

group formed by the raw material suppliers. Bulk purchase may be made from Surat,

Barielly, varanasi, Agra, Jaipur & Barmer. The savings may contribute the cost of

production to be more competitive as well as increment of wage component of

artisan.

Working Shed

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Generally tiny enterprises use a hall of 300 sqft.to 600 sqft. area as working shed.

20 to 60 workers are working in this shed. The entrepreneurs provide musical

system in the factory shed for the workers to get rid of monotony. But the condition of

working shed of household unit is miserable. They use one room of their residence

as working shed which is not properly covered. External agents like rain, dust etc.

may damage the saree at any time. In most of the time they have to use this

working shed as bed room or other wise. Extreme poverty does not allow them to get

it repaired. Financial assistance in this regard is the urgent need of the cluster

because we cannot expect high quality competitive product of higher value addition

with higher productivity level without a spacious, airy & brightened working shed.

Area wise common working shed may also be helpful to get better results.

Technology & Production

Machinery

This is an artisan based cluster. Investment in plant and machinery is minimum. The

following tools and implements are being used by the cluster.

(a) Hadda (wooden frame) (d) Iron

(b) Needle (different type) (e) weighing balance

(c) Scissors.

Skill of the artisan is the inherent strength of this cluster. They have to replicate a

design on a saree manually with zari embroidery raw material. It required patience of

the artisan and long time. As artisan has to put labour for 12 hours per day. Working

with ‘Hadda’ is as such that it may create eye problem as well as spinal problem.

Technical assistance from Mechanical Engineering Department, Jadavpur University

may be sought for up-gradation of Hadda to get rid of the artisan from occupational

hazard.

At present the cluster is facing threat from the product made of hand embroidery

machine and China made computerized embroidery machine. But the quality of this

product is not comparable with that of the cluster. Some state level buyers also

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installed China made computerized embroidery machine to manufacture cheaper

products. In near future it may reduce inflow of job work to cluster. Hence

introduction of these machineries in the cluster in near future may be the need of era

to increase the volume of production. A blend of machine embroidery & hand

embroidery may be launched to make the product more competitive.

Design

Capability of making design is largely concentrated to large traders/master craftsmen

and a few tiny enterprise. House hold units have to depend on those for getting

design. Generally the design makers make the designs on paper and it is copied on

saree by means of some chemicals. A paper design may be used for 5 to 10 times.

After that it has to throw to dustbin. But to make a design is a time taking process.

They draw a design on paper and then perforate it. But they cannot use it fully. Use

of computer aided design may solve this problem. Tiny enterprises and house hold

units are to be self reliant on design. Skill development training on design and

installation of a common design center with all facilities in the cluster is the only

remedy to overcome these problems.

Products

The following products are manufactured in the cluster.

(a) Saree 80% (e) Punjabi

(b) Salwar / Kameez (f) Curtains

(c) Langar / Ghagra (g) Other dress materials like Scarf etc.

(d) Churidar

Among the above products Saree is the main products of the cluster. Zari

embroidery Saree have good demand in the country and the other products have

very good export potential as well as domestic market. But most of the units are

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engaged if production of Saree they have not attempted to diversify the product to

face the global market.

Although the success of Zari embroidery industry purely depends upon its orientation

towards adapting to fashion trends, no efforts have so far been taken by the cluster

to develop new designs or products due to a lack of technical and design support.

The importance of testing and quality control is not fully-known to the tiny enterprises

and house hold units. They have to pay for any kinds of complain of damage raised

by the traders. Establishment of a testing center may solve these problems. If the

quality of product is ensured then it may be sold in the market at its own identity.

Marketing

Most of the tiny enterprises and all house hold units are fully dependent on big

traders/master craftsmen for marketing their product. Basically they are doing their

activities on sub-contracting basis. Some tiny enterprises tried to develop direct

marketing linkage with Barabazar but they could not be able to get the desired result.

Another problem of house hold unit is that the volume of production is too small to be

linked up to the whole sale market. This problem may be solved by forming self help

group among the house hold units. As this is an artisan based cluster the most of

principal firms have no idea about marketing management. They didn’t conduct

market survey in India & abroad for their product. Actually they have no idea about

the actual position and actual price of their product in the global market. Entire

cluster is fully dependent on Barabazar for marketing their product. Actually state

level and national level buyer at Barabazar regulate the cluster through some big

traders/master craftsmen of the cluster. To improve the market linkage with the

cluster the following intervention may be made.

(i) Training on marketing management

(ii) Market survey in India and abroad

(iii) Participation in trade fair

(iv) Buyer- seller meet

23

At present master craftsmen / big traders of the cluster are the key persons to link

the cluster with the national market. They have already built up good capital base but

they are ignorant of export market. They have not sufficient courage to invest their

capital base in the export market. They are only interested to gain more from the

cluster. Primarily these stake holders have to be trained about export procedure and

to be linked with export council on handicrafts. Seminar, buyer- seller meet with local

export house are also to be organized for the betterment of present scenario. A few

B.D.S. providers are to be linked with the cluster immediately. If a business resource

center with all ultra-modern facilities is set up in the cluster, that will be a landmark to

the cluster to get the global market within the cluster.

Institutional Linkage

Major problem of the cluster is lack of institutional linkage. Although there are eight

no. of Nationalized Bank and two no. of Gramin Bank within the cluster, yet their

existence is not properly utilized by the cluster due to lack of knowledge. The loan

already disbursed to house hold unit is turned into bad debt due to absolute poverty,

lack of knowledge regarding basics of financial management & lack of monitoring.

With these Bank the service of SIDBI & NABARD, WMDFC etc. are also to be

channelized to meet the needs of the artisan. A few seminars are to be organized

regarding the different assistance scheme of financial institution.

There is no technical institution within the cluster. The technical institution outside

the cluster viz, NIFT, Jadavpur Engineering College, NID, CYSEC etc. are to be

linked for sustained growth of the cluster. These institution may gear up the growth

of cluster providing support regarding innovative design, upgrading skill etc.Export

promotion council on handicrafts and some B.D.S. providers are to be linked with the

cluster to boost up the export market.

PRESENCE OF NETWORKS AND INTRA INTER STAKE HOLDER GROUP

DYNAMICS

24

A registered co-operative society in the name of Budge-budge Block-II Silpa

Samabaya Samity Ltd. has been formed in the month of September-2006 with 13

members. The members of the society have engaged themselves in production

process as well in marketing. They use common working shed and employ some

artisans if necessary. This society is directly linked with Barabazar for marketing.

Only 14 networks of artisan in the form of S.H.G are there in the cluster. But

performances of most these S.H.G’s are not good enough as expected due to

lack of proper nurture. However, 4 nos. of groups are performing well. Mutual trust

among the members of these 4 nos. of groups is high enough. They are trying to do

production jointly in-spite of lack of infrastructure. But they also have to be

dependent on big traders for marketing their product. This is due to lack of

knowledge in marketing, insufficient capital base, low volume of production etc.

These problems may be solved through formation of SHG’s which can take leading

role in terms of marketing, purchase of bulk raw materials introduction of innovative

designsetc.

25

7. PRESENT CLUSTER MAP

7.Present Cluster Map of Zari Embroidery Cluster at Budge-Budge-II Block and surrounding areas of South 24 Paragana District.

Nationalized Bank-8, Gramin Bank-2, DIC, WBMDFC Zilla Parishad Panchayat Samity & GP. District & Block administration.

State level Buyer

Master craftsmen / Big traders (8)

Sub-agent (100)

Tiny unit (500) with 8000 workers

House hold unit (4000) with 12000 artisan

14 SHG with 150 H.H. unit Sub-agent (100)

Big traders/ Master

craftsmen (8)

State level Buyer

Raw material supplier (50)

Machinery supplier (20)

26

8. SWOT ANALYSIS

STRENGTH

In terms of artisan:-

(1) Concentration of huge no. of skilled & semi skilled artisan.

(2) No labour problem.

(3) The readiness of new generation to enter this trade.

In terms of infrastructure & inputs:-

(1) Easy accessibility to level market.

(2) High capacity of investment of a few no. of entrepreneur.

WEAKNESS

In terms of artisan:-

(1) Lack of mutual trust.

(2) Deprivation of artisan by traders.

(3) Artisans are socially, financially, educationally & market wise back ward.

(4) Lack of network formation.

(5) Poor knowledge regarding design & fashion dynamics/limited no. of dsigns.

(6) No formal training.

(7) Occupational hazard like eye & spinal problem.

In terms of technology & production:-

(1) Inconsistency in quality.

(2) Limited production capacity.

(3) Non-diversification of product.

(4) Lack of awareness about the need for testing & quality control.

(5) Non-use of ultra modern machinery.

In terms of inputs and infrastructure:-(1) No direct purchase of raw material from manufacturer.

(2) No linkage with technical institution.

(3) No linkage with B.D.S. providers.

(4) Poor condition of working shed.

27

(5) Lack of common working shed.

(6) Poor flow of credit.

(7) Poor recovery of loan already disbursed.

In terms of market:-(1) Seasonality in demand.

(2) No direct link with global markets and fashion dynamics.

(3) Poor knowledge of artisan regarding marketing.

(4) No market survey had ever been conducted.

OPPORTUNITY

(1) Strong domestic market as well as growing export market.

(2) Good scope of product diversification according to fashion dynamics.

(3) Good banking source.

THREAT

(1) Cheaper product made of ultramodern embroidery machine.

(2) Competition from similar type of industry outside cluster.

9. VISION

“To improve the present market share in national & global market at least up to 30% & 20 %

respectively and to increase the income level of artisan up to at least 50% through increasing value

addition in the product by upgrading the quality, design, human resource skills and technology

levels within three years.”

10. LONG RUN OBJECTIVE

(1)The cluster will be directly linked with the export market through its website, the business

resource center and the exporter within the cluster.

2) Consortium for purchasing raw materials, Design center & business resource center, common

facilities center with ultra modern embroidery machine & dyeing unit, testing center will be there

in the cluster for the production of higher value added competitive product.

28

(3) Income level of artisan will be increased to such extent so as to meet the minimum

requirement of their families.

(4)The health and social needs of the artisan would be given an ongoing attention.

11. STRATEGY

(1) The main strategy required for development of the cluster is changing the mindsets of the

core actors in tiny enterprises & house hold units. They should be encouraged to form self

help groups amongst themselves and federation of SHG’s in order to undertake necessary

developmental initiatives, including the establishment of necessary infrastructures facilities.

(2) Technical support for improving the quality, design, productivity and linkages with the

technical institutions and B.D.S providers will be provided to build the cluster’s capacity to

diversify the products, enhance the productivity and raise the income level of artisan.

(3) Sustained growth of the cluster will be ensured through different training programme in the

areas of up-gradation of skill, design, quality awareness, marketing , EDP & export and

linking the cluster with the export market.

29

12.1 ACTION PLAN FOR FY 2007-08

Sl No.

Typologies of activities Objectives Duration/Quarter

Implementing agency

Total Budget Rs.’000

Central Govt. Rs’000

State Govt. Rs.’000

Stake holder Rs.’000

Out come/ Benefited firms

1

(1.1)

Trust Building

Study visit to other cluster (Mumbai/Bareilley)1 no. With 10 person

To share experience regarding diversified Production, design,marketing

10 days/2nd N.G.O./SHG 150 120 20 10

1) Get ideas of joint activities.2)Formation of network by interested firms for each activity.Direct-10I - Total

(1.2) Study visit to different raw material production center(Surat) with 10

no. Raw material supplier.

To get knowledge regarding various kinds of raw material &bulk purchase.

10 days/2nd N.G.O/DIC 150 120 10 20

Identification of various raw materials with scope for joint/direct purchase & estimated cost reduction and CDC formed. D - 10I – Total cluster

(1.3) Seminar/workshop (2 nos) on SICDP

General awareness building regarding cluster development

2 days/1st & 2nd

N.G.O/DIC25 20 5

XArtisan & other stake holders will take part in cluster dev programme spontaneously. Role clarity of various stake holders will be established.D – 200I – Entire cluster

1.4 2 meetings of CDCC Monitoring of activities

Q2 & Q4 N.G.O/DIC 6 4 2Entire Cluster, Streamlining of activities

30

Sl No

Typologies of Activities Objectives Duration/Quarter

Implementing Agency


Central Govt. Rs.’000

State Govt. Rs.’ 000


Out Come Benefited Person

2.

(2.1)

Market Development

Exporter-seller meet(1 no.)

To gather knowledge regarding various aspects of export & Marketing linkage

1 day/3rd NGO/DIC 20 16 4 XDemand for exportable quality & delivery requirements will be understood and new export linkage may occur.D –50I – Entire Cluster

(2.2)Participation in national trade fair (2 nos.) ,10 person in each trade fair

To get experience regarding sales display & marketing

15 days/3rd & 4th

SHG/NGO 200 160 20 20New marketing channel will be opened and business will take place.D – 50

(2.3) Brochure preparation.To prepare document regarding product for marketing

30days/2nd NGO 50 35 10 5

It will help different buyer to know about the different product range of cluster.I – Entire Cluster

(2.4) Training on marketing (Selling & merchandising) (2 no.) 40 person in each programme)

To build up knowledge about various aspects of marketing .

30 days/1st

& 3rd NGO 200 140 40 20

Marketing (Selling & Merchandising) skill will be developed.D – 80 , I – 240

(2.5) Training on export development with 20 person (1 No.)

Export Development 30 days/2nd EPCH / NGO /

DIC.100 70 10 20

Creation better understanding of export procedure.

D – 20I – All

(26) Market Survey for up-market national client at Delhi & Mumbai

To identify market potential. 60 days/

2ndReputed Agency.

500 400 100 X

Selection of appropriate product & target buyer for future growth.

I – Entire Cluster

31

Sl No


Implementing Agency


Central Govt. Rs.’ 000


Stake holder Rs.’ 000

Out ComeBenefited Person

3.

(3.1)

Technology Up gradation.

Demonstration of modern machinery, testing equipments etc. for stitching, pattern making.

Awareness building regarding utility of modern machinery.

5 days/3rd NGO / DIC 50 40 5 5

Clusters actors will be able to decide regarding acceptance of modern technology based on price & productivity.I - Entire Cluster

(3.2) Assistance from technological institution for improving posture for working on wooden frame.

To get rid of occupational hazard. 90 days/

1stNGO 100 80 10 10

Creation of suggestive posture and improved machinery.

I – All

(3.3) 1 month design development

training with 40 person (2 no.)

Skill up gradation to make latest design.

30 days/1st & 3rd NIFT / NGO 200 160 20 20

D – 80I – 200Higher value product will be made in the cluster

(4)

(4.1)

Capacity Building for Net Work.

Formation of SHG’s (30 Nos).(With Principal firms, raw material suppliers)

To build mutual trust & joint working

1 year1st to 4th N.G.O. 150 120 15 15

Direct -150Joint production & marketing will take place

Sl No


Implementing Agency






5.

5.1

Common Facility Centre

Preparation of feasibility report for setting up of CFC with computerized embroidery machine & dyeing unit, testing centre, raw material Bank.

To provide common facilities.

2nd to 4th Expert/NGO 100 80 20 X I-EntireClusterIt will help the cluster to manufacture high quality diversified range of product of latest design to make the product more

32

. competitive.

6.(6.1)

Others

3 months skill development training on stitching with 40 person. (2 course)

To build up skill among the artisan of household unit to raise income level.

90 days/1st & 4th

NGO / master / Crafts man

400 320 40 40D – 80I – 200Higher value product will be made in the cluster

Grand Total 2401 1885 329 187

Notes:

1. DC = DCSSI, SG = State Government of West Bengal, SH = Stakeholders

2. Action plan for the year 2008-09 is provisional but indicative of likely budget for approval. Based on the learning received during implementation for the year 2007 -08, a modified action plan for 2008-09 will be submitted for activity based approval towards the end of the year 2007-08.3. Action plan for the year 2009-10 is provisional but indicative of likely budget for approval. Based on the learning received during implementation for the year 2007-08 and 2008-09, a modified action plan for 2009-10 will be submitted for activity based approval towards the end of the year 2008-09.4. Detailed DPR for CFC will be submitted for consideration as per Action Plan.5. Various local, state and national level technical and financial institutions as well as consultants/ consultancy organisation will be involved in implementing these activities. Some names are also mentioned against some activities. However these names are not exhaustive.

12.2 Action Plan for FY 2008-09

Sl No.


Implementing agency

Total Budget

Central Govt.

State Govt.

Stake holder


33

Rs.’000 Rs’000 Rs.’000 Rs.’000

1.1Trust BuildingSeminar/workshop (2 nos). To increase

productivity & Product diversification

1 days/3rd

N.G.O/DIC 20 16 2 21)Selection of appropriate product.2) Enhanced productivityD – 200I – Entire cluster

(1.2)Exposure visit to Bombay To get

preliminary knowledge regarding export market

7 days/2nd Association/NGO

150 105 15 30 Exposure to export marketD-10I- All

1.3) 4CDCC meetings Review of action plan & monitoring

Each Quarter

DIC/Association

12 8 2 2 1)Action plan will be reviewed.2)Evaluation of previous work.I :- Entire cluster

Sl No.


Implementing agency






34

2.

(2.1)

Market Development

Buyer-seller meet(2 no.)

To gather knowledge regarding various aspects of Marketing linkage

1 day/3rd NGO/DIC 40 32 4 4Present market trend, quality & delivery requirements will be understood and new domestic market linkage may occur.D –50I – Entire Cluster

(2.2)10 No. joint design development Introduction of

latest fashion oriented design.

30 days/2nd Federation/NGO

100 80 10 10 Introduction of 10 no. of latest fashion oriented design

2.3Participation in national trade fair (3 nos.) ,10 person in each trade fair

To get experience regarding sales display & marketing

15 days/3rd & 4th

SHG/NGO 300 240 30 30New marketing channel will be opened and business will take place.D – 30

(2.4) Website launching Market linkage 30 days/4th Federation 40 32 4 4 Market linkage with national & international market.

Sl No


Implementing Agency






35

3(3.1)

Technology UpgradationDemonstration of new model of machinery invented by technological institution for improving posture for working on wooden frame.

To get rid of occupational hazard.

6 days/2nd

NGO 10 8 X 2

Creation of suggestive postureand improved machinery.

I – All

(3.2) 1 month CAD training with

40 person (2 no.)Skill up gradation to make latest design.

30 days/1st & 3rd NIFT /

NGO100 70 10 20

Wide range of higher value added product will be made in the clusterD – 40I –100

(4) Capacity Building for Net Work.



1 year1st to 4th N.G.O. 200 160 20 20


4.2)

Federation of SHG ( 1 No) For joint production & marketing

1 month/1st

NGO 20 16 2 2 1) Joint production2) Joint marketing2) Joint procurement of raw material D - 300

4.3)

Appointment of 1 NDA for 6 month

Management of federation

6 month/2nd

Federation

60 42 6 12 1) Strengthening of federation2) Management activities of federation.D-300

4.4)

Registration of SPV & hiring of space for SPV

Smooth functioning of SPV

1 month/1st

Federation

100 72 8 20 Smooth functioning of SPVD- 40I - All

Sl No


Implementing Agency






36

5.

5.1

Common Facility Centre

In accordance with the feasibility report computerized design Centre, testing centre & raw material Bank will be established.


.

2nd to 4th SPV/NGOAs per approved DPR, once submitted and approved by DCSSI office under SICDP

1) It will help the cluster to manufacture high quality diversified range of product of latest design to make the product more competitive.2) Deprivation of artisan will be minimisedD- Entire cluster

6.6.1)

Others

3 months skill development training on stitching regarding diversified range of product with 40 person. (1 course)


90 days/1st


200 160 20 20Diversified range of higher value added product will be made in the clusterD – 40I – 100

Grand Total1495 1186 132 177

37

12.3 Action Plan for FY 2009-10Sl No.


Implementing agency






1.1Trust BuildingSeminar (2 nos) regarding Bank finance with concerned Bank & DRDC.

To increase credit facility

2 days/1st & 2nd

N.G.O/DIC20 16 2 2 1) Credit facility geared up

2)Common working shed/Individual working shed may be built upD – 200I – Entire cluster

(1.2) 4CDCC meetings Review of action plan & monitoring

Each Quarter

DIC/Association

12 6 2 4 1)Action plan will be reviewed.2)Evaluation of previous work.I :- Entire cluster

2

2.1

Market Development

Participation in foreign international trade fair

To get experience regarding sales display & export marketing

7 days/2nd

Federation/NGO 800 560 80 160New marketing channel will be opened and business will take place.D – 4I – Entire Cluster

2.2 Exporter-seller meet(1 no.)

To gather knowledge regarding various aspects of export & Marketing linkage

1 day/3rd NGO/DIC 20 16 2 2Demand for exportable quality & delivery requirements will be understood and new export linkage may occur D –50I – Entire Cluster

2.3 Joint design developmentIntroduction of latest fashion oriented design.

30 days/2nd Federation/NGO

200 144 16 40 Introduction of 20 no. of latest fashion oriented design D – 200, I – Entire Cluster

38

Sl No


Implementing Agency






33.1

Technology Up gradation

1 month CAD training with 40 person (1 no.)

Skill up gradation to make latest design.

30 days/1st & 3rd NIFT /

NGO100 80 10 10

D – 80I – 200Wide range of higher value added product will be made in the cluster

44.1

Capacity Building for Net Work.



1 year1st to 4th N.G.O. 200 160 20 20


4.2 Federation of SHG ( 1 No) For joint production & marketing

1 month/1st

NGO 20 16 2 2 1) Joint production2) Joint marketing2) Joint procurement of raw material D - 300

4.3 Expenses for NDA for 12 month & hire charge of office of SPV

Management of federation & SPV

6 month/2nd

Federation 200 140 20 40 1) Strengthening of federation2) Management activities of federation.D-300

39

Sl No


Implementing Agency






5. Common Facility Centre

In accordance with the feasibility report common computerized production Centre with dyeing unit will be established.


.

2nd to 4th SPV/NGODetailed Project Report and budget of CFC will be finalized later and submitted at an appropriate time as per SICDP norms.

1) It will help the cluster to manufacture high quality diversified range of competitive product.2) Productivity will increaseD- Entire cluster

6.(6.1)

Others

3 months skill developmenttraining on stitching regarding diversified range of product with 40 person. (1 course)


90 days/1st & 4th


200 160 10 301) Diversified range of higher value added product will be made in the cluster2) Consistency in quality.D – 40I – 100

Total 1772 1298 164 310

40

13. FUTURE CLUSTER MAPFuture Cluster Map of Zari Embroidery Cluster at Budge-Budge-II Block and surrounding areas of South 24 Paragana District

Nationalized Bank (8), Gramin Bank (2), DIC, WBMDFC, SIDBI, NABARD, EPCH, FACSI, FOSMI, Zila Parisad & Panchayat Samati, & G.P. District & Block administration.

New market

State level Buyer

Big traders/Master crafts

Sub-agent 120

National level Buyer

Export

Export

Direct sales

Common brand

Consortia for export

Tiny unit- 750 Worker- 12000

House hold unit – 6000Artisan – 18000

Service institution :Design center, Testing laboratory, Business resource center, CFC, NIFT, NID, B.D.S. provide (Technical & Marketing)

Sub-agent 120

Big traders/Mas

ter craftsmen

12

Sub level Buyer

Raw material supplier- 80

Machinery supplier - 20

Raw material Bank

Association

Association

200 SHG of 2500

41

14.1 ANNEXURE – 1 Value Cain Analysis of Saree of Consumer Price Rs. 900/-

Saree received from national level buyer out side the cluster.Rs. 200/-

Saree received by big traders within the cluster.Rs. 200/-

DesignRs.20/-

Raw materials Rs. 80/-

Handicraft work byHouse Hold unitRs. 300/-

Commission of Sub-agentRs. 30/-

Profit of trader / mater craft manRs. 80/-

Inward & Outward Transportation Rs. 5/-

Profit whole SaleRs. 30/-

Profit of retailerRs. 155

Consumer Price

Rs.220/-

Rs.

Rs. 600/-

Rs. 630/-

Rs710/-

Rs. 715

Rs. 745

Rs.900

42

14.2 ANNEXURE – 2 P-40

Value Chain Analysis of a Saree of Production Cost Rs. 9500.00

Cloth received from national level buyer by the big trader / Tiny enterprises of Cluster.Rs. 2500/-

DesignRs. 200/-

Raw materialsRs. 800/-

Wages to artisan for handicraft work.Rs. 4500/-

Profit of Tiny EnterprisesRs. 1500/-

State / National level buyer.

9500/-

8000/-

3500/-

2700/-

43

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