Term Paper

On

Business Environment

Topic: Handicrafts: - PESTLE Analysis

Submitted To: Submitted By:

Mrs. MANEET KOUR PRIYA KAPIL

MBA I – LIM

RT1901A-14

R.N.-10902091

Date: 10/12/2009

ACKNOWLEDGEMENT

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

S.No. Particulars Page No.

(A) Concept of Handicraft in India 4-6

(B) Introduction and Definition of

Handicraft

7-8

(C) Importance of Handicrafts 8-9

(D) Industry Analysis 9

(E) Key role of Handy crafts Industry 9-10

(F) Classification of Handicrafts

Industry

10-1i

(G) Swot Analysis of Handicrafts

Industry

11-15

(H) Role in Indian Economy 16-19

(I) Objective of the survey 19-24

(J) Pastle Analysis of Handicraft

Industry

25-26

(K) Conclusion 26

Bibliography 27

CONCEPT OF HANDI CRAFTS INDUSTRY:

The concept of Indian Handicrafts has emerged from one of the oldest civilizations

called the Harappa Civilization and the Indus Valley Civilization. The exclusive

items carved by the India Handicraft Industry comprise of vast cultural and ethnic

diversity that has imbibed an array of unique themes, techniques, and crafts. India

Handicraft Industry has been globally popularized as the rich and cultural heritage

of India for its unique appeal. Handicrafts of India use brass, metal, wood, stone,

and beads to carve its products ranging from masterpieces to plain household

items.

Paintings, furniture, sculptures, artificial jewelry, animal figures, figurines of

deities and idols, baskets, and many more items have been complimented as the

pride of India.

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:

According to United Nations Educational, Scientific and Cultural

Organization/Information Technology Community (UNESCO/ITC) International

Symposium on “Crafts and the International Market: Trade and Customs

Codification”, Manila, Philippines, October 1997:

Handicrafts can be defined as products which are produced either completely by

hand or with the help of tools. Mechanical tools may be used as long as the direct

manual contribution of the artisan remains the most substantial component of the

finished product. Handicrafts are made from raw materials and can be produced in

unlimited numbers. Such products can be utilitarian, aesthetic, artistic, creative,

culturally attached, decorative, functional, traditional, religiously and socially

symbolic and significant.

According to Govt. of India:

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.

The Economic Importance: Handicrafts are hugely important in terms of

economic development. They provide ample opportunities for employment

even with low capital investments and become a prominent medium for

foreign earnings.

In addition to the high potential for employment, the sector is economically

important from the point of low capital investment, high ratio of value addition,

and high potential for export and foreign exchange earnings for the country. The

export earnings from Indian handicrafts industry for the period 1998-99 amounted

to US$ 1.2 billion.

Although exports of handicrafts appear to be sizeable, India’s share in world

imports is miniscule. It is a sector that is still not completely explored from the

point of view of hidden potential areas. India, a country with 26 states and 18

languages and more than 1500 dialects offers an enormous range of handicrafts

from each of the states. Major centers in Uttar Pradesh are Moradabad also known

as the "Petal nagari" (City of Brass), Saharanpur for its wooden articles,

Firozabad for Glass. The North Western state of Rajasthan has to offer the famous

Jaipuri quilts, Bagru and Sanganer printed textiles and wooden and wrought

iron furniture from Jodhpur. The coastal state of Gujarat comes with

embroidered articles from Kutch. Narsapur in Andhra Pradesh is famous for its

Lace and Lace goods. But this is only a small part of the total product range. India

offers much more.

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.

Key Facts of Indian Handicrafts Industry:-

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.

Handicrafts industry is one of the important segments of decentralized sector

in India.

Major parts of industry operates in rural and semi urban areas throughout the

country and has potential Indian and International market with around 67000

exporters to tap the market.

According to the national census of handicrafts, undertaken by the National

Council for Applied Economic Research the value of handicrafts produced

last year were of Rs 26, 213 Crores.

This Industry provides huge employment opportunities to artisans that

include women and people belonging to backward and weaker society. This

is one of the major sources of income there.

India’s contribution in world market is 1.2%

The total exports of crafts items: - Rs. 134129.2 millions.

Industry’s share in India's exports:- 1.51 %

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 poor promotion for craft products in national market.

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:

Handicrafts industry comprises diversified products portfolio and there is large

variety available in market. Handicrafts products can be distinguished into

following:

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.

Textile based 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:

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:

Large, diversified and potential market.

There is large product variety and range is available because of diversified

culture.

It has strong, diversified and supportive retail infrastructure.

Diversified product range that service different market.

Cheap labour rates that result to competitive price.

Need low capital investment.

There is flexible production flexibility.

Low barriers of new entry.

Easy creation and development of production centres.

There is no need for macro-investment.

Industry provides potential sources of employment.

Products are high value added, and handicrafts have various applications.

It is the potential source of foreign revenue because of higher export.

Weaknesses:

Lack of infrastructure and communication facilities.

Unawareness about international requirements and market.

Lack of co-ordination between government bodies and private players.

Inadequate information of new technology.

Inadequate information of current market trends.

Less interest of young people in craft industry.

Lack of skilled labour.

Still confined to rural areas and small cities and untapped market.

Lack of promotion of products.

Opportunities:

Rising demand for handicraft products in developed countries such as USA,

Canada, Britain, France, Germany, Italy etc.

Developing fashion industry requires handicrafts products.

Development of sectors like Retail, Real Estate that offers great

requirements of handicrafts products.

Development of domestic and international tourism sector.

E-Commerce and Internet are emerged as promissory distribution channels

to market and sell the craft products.

Threats:

Competition in domestic market.

Quality products produced by competing countries like China, South Africa.

Better Trade terms offered by competing countries.

Increased and better technological support and R and D facility in competing

countries.

Centres:

Artmetalware :

Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Rewari, Thanjavur, Madras,

Mandap, Beedar, Kerala & Jagadhari, Jaselmer

Wooden Art wares:

Saharanpur, Nagina, Hoshiarpor, Srinagar, Amritsar, Jaipur, Jodhpur, Jagdalpur,

Bangalore, Mysore, Chennapatna, Madras, Kerala & Behrampur (WB)

Handprinted Textiles & Scarves:

Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru & Sanganer

Embroidered goods:

Kutch (Gujarat), Jaisaimer, Baroda, Lucknow, Jodhpur, Agra, Amritsar, Kullu,

Dharmshala / Chamba & Srinagar

Marble & Soft Stone Crafts : Agra, Madras, Baster, Jodhpur

Papier Mache Crafts : Kashmir, Jaipur

Terracotta : Agra, Madras, Baster, Jodhpur

Zari & Zari Goods : Rajasthan, Madras, Baster

Imitation Jewellery: Delhi, Moradabad, Sambhal, Jaipur, Kohima

(Tribal)

Artistic Leather Goods: lndore, Kolhapur, Shanti Niketan (WB)

Selected crafts pockets for achieving export goal:

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.

Moradabad (UP) : For Artmetalwares and imitation jewellery

Saharanpur (UP) : For Wooden handicrafts & Wrought iron handicrafts

Jodhpur (Raj.) : For Wooden, Wrought Iron and Sea Shell handicrafts

Narsapur (A.P.) : For Lace and Lace goods

COUNTRY-WISE EXPORTS OF HANDICRAFTS

The major buyers for handicrafts (other than carpets) are as under:

Art Metal wares: U.S.A., Germany, U.K. & Italy

Wood Wares : U.S.A., U.K., Germany & France

Hand Printed & Textiles & Scarves: U.S.A., U.K. , Germany & Canada

Embroidered & Crocheted Goods : U.S.A., Saudi Arabia, U.K., Germany

Shawls as Artwares: Saudi Arabia, U.S.A. Japan & U.K

Zari & Zari goods: U.K. U.S.A., Japan & Saudi Value Adding Chain in Handicrafts

Value Adding Chain in Handicrafts

Identification of market opportunities

Prototype design and development / adaption and refinement

Test marketing

Upgrading equipping facilities

Securing inputs

Entrepreneurial hiring, training, managing

Production, quality control and packaging

Costing and pricing

Physical distribution

Export market development

Other forms of Handicrafts Industry:

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:

Bhilwara Spinners Ltd. (LNG Group) – polyester, viscose, wool-blended

fabrics and high-end products like Lycra and linen. BSL Suitings and Mayur

Suitings are the two brands under Bhilwara Spinners Ltd.

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.

Sangam (India) Ltd. (Sang am Group of Companies) – Largest producer of

dyed yarn in India with a capacity of 64032 spindles in one location.

Ajay Group of Industries – Manufacturer and seller of polyester viscose,

polyester woolen and uniform 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

India Woodwork Industry is one of the fastest growing industries in India's

economy. India possesses around 100,000 registered wood ware units and more

than 200,000 artisans along with countless other woodworking related units in the

sector. Wood has always been a major part of Indian handicrafts and various

beautiful things are crafted out of it. India takes pride in manufacturing exquisite

and handsome wooden handicrafts in diverse motifs.

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.

Kerala - Specializes in arena handicrafts that along with representing their

customs and beliefs also portray their spiritual values and emotions.

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 Handicraft Industrial Overview:

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.

According to the classification of Indian industries, a small scale industry is

defined as an industry that is:

Not registered under the Factory Act.

Investment in fixed assets does not exceed Rs 60 lakhs.

Small scale industries are classified into two categories:

Modern small scale industries like power looms etc.

Traditional industries like handlooms, sericulture, khadi, coir, and

handicrafts.

Wooden handicrafts fall in the category of small scale traditional industries.

Role in Indian Economy

The wooden handicrafts industry plays an important role in the Indian economy.

This industry requires low capital investment and other resources. The wooden

handicraft sector provides a high ratio of value addition, and has emerged as one of

the major sources of foreign exchange earnings for India.

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.

Objective of the survey

To know about the market potential for the handicraft

To analyze the handicraft manufacturing, its competition, customer

preferences and their satisfaction level.

To find out the major players in the market

Source of Information

Primary (Market Survey) and Secondary data

Methodology Adopted:

Research plan was developed through conclusive research design using descriptive

research analysis methods by survey as detailed below:

Research Approach:

1. Primary data for gathering information regarding manufacturing

requirements and facilities available at Shekhawati region was collected by

personal interview with different manufacturers selected on the basis of

random sampling survey method.

2. Secondary data regarding world demand and supply positions, Indian

Handicraft status and other relevant information were gathered from

different websites.

PESTLE Analysis:

PESTLE analysis stands for "Political, Economic, Sociological, Technological, legal, and environmental analysis" and describes a framework of macro environmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.

PESTEL Analysis is a simple, useful and widely-used tool that helps us understand the "big picture" of our Political, Economic, Socio-Cultural Technological, Legal and Environmental Factors. As such, it is used by business leaders worldwide to build their vision of the future.

PESTLE analysis is concerned with the environmental influences on a business. Identifying PESTLE influences is a useful way of summarizing the external environment in which a business operates. However, it must be followed up by consideration of how a business should respond to these influences.

It is important for these reasons:

First, by making effective use of PESTEL Analysis, we ensure that what we are doing is aligned positively with the powerful forces of change that are affecting our world. By taking advantage of change, we are much more likely to be successful than if your activities oppose it;

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:

Political / Legal Economic Social Technological

- Environmental regulation and protection

- Economic growth (overall; by industry sector)

- Income distribution (change in distribution of disposable income;

- Government spending on research

- Taxation (corporate; consumer)

- Monetary policy (interest rates)

- Demographics (age structure of the population; gender;

- Government and industry focus on

family size and composition; changing nature of occupations)

technological effort

- International trade regulation

- Government spending (overall level; specific spending priorities)

- Labour / social mobility

- New discoveries and development

- Consumer protection - Policy towards unemployment (minimum wage, unemployment benefits, grants)

- Lifestyle changes (e.g. Home working, single households)

- Speed of technology transfer

- Employment law - Taxation (impact on consumer disposable income, incentives to invest in capital equipment, corporation tax rates)

- Attitudes to work and leisure

- Rates of technological obsolescence

- Government organization / attitude

- Exchange rates (effects on demand by overseas customers; effect on cost of imported components)

- Education - Energy use and costs

- Competition regulation

- Inflation (effect on costs and selling prices)

- Fashions and fads - Changes in material sciences

- Stage of the business cycle (effect on short-term business performance)

- Health & welfare - Impact of changes in Information technology

- Economic "mood" - consumer confidence

- Living conditions (housing, amenities, pollution)

- Internet!

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:

Employees NumberSalary (Rs.)

Per day Per month Annually

Production Supervisor

1 - 5000 60000

Accountant 1 - 5000 60000

Skilled Workers

5 150 450054000*5 = 2,70,000

Semi skilled Workers

8 125 375045000*8 = 3,60,000

Unskilled workers

3 100 3,00036000*3 = 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

On time payment is a best retention strategy. So I will give on time

payments to retain my skilled worker.

Medical facility to all worker and employees.

Occasional bonus to skilled workers.

Housing facility: I will provide labour quarter to skilled worker who are not

from local areas.

I will provide employment to their spouses based upon their ability.

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