Economic Empowerment Economic Empowerment of Rural Womenof Rural Women

A Case Study from ITCA Case Study from ITC

Presentation at FICCI’s ‘Indian Rural Business Summit’New Delhi, 8th October 2007

Mission Sunehra KalMission Sunehra KalTransforming Lives & LandscapesTransforming Lives & Landscapes

• Natural resources managementNatural resources management– Wasteland development– Integrated watershed development– Improved agricultural practices

• Sustainable livelihoodsSustainable livelihoods– Breed improvement programme– Women’s economic empowerment

• Improving employabilityImproving employability– Universalising primary education– Skills training & upgradation

Forging Multi-Stakeholder PartnershipsForging Multi-Stakeholder Partnerships

ITC Limited

Civil Society Government

Community(Farmers, women and children)

Scale TodayScale Today• 74,427 hectares of wastelands

converted into productive agro-forestry

• 27,714 hectares brought under soil & moisture conservation

• 1.08 lakh milch animals covered under animal husbandry programme

• 13,171 women organized into micro-credit groups

• 86,000 primary school goers provided additional coaching

Women’s Economic Women’s Economic EmpowermentEmpowerment

Activity UnitTo date

Micro-credit programmeSHGs (cumulative) No 887 Members (cumulative) No 13,171 Savings (cum) Rs (lakhs) 72.05

Internal loans disbursed Rs lakhs 86.43

External loans leveraged Rs lakhs 130.94

Self EmploymentSHGs covered No 362 IG beneficiaries No 3,921

Micro-enterprisesSHGs covered No 221 IG beneficiaries No 2,923

Skills training No of women 1,321

Achievement

Women’s ProgrammeWomen’s ProgrammeMicro-enterprisesMicro-enterprises

Activity Unit Volume WomenTurnoverNo (Rs Lakh)

Agarbatti (Munger, Saharanpur, Hardoi)Tonnes 73 750 50.91

Chunari (Saharanpur) 120 0.64 Chikan (Hardoi) 280 34.00 Vermi-compost (Munger) Pits 105 123 0.83

FMCG Sales (Hardoi) 110 1.40 Mushroom cultivation (Saharanpur) Qtls 150 210 2.99 Total 1,554 90.77

Chikankari in HardoiChikankari in HardoiAA Case studyCase study

Promoting Rural Women Entrepreneurs

Low Productivity Trap of Chikankari Low Productivity Trap of Chikankari WorkersWorkers

• Unorganised• Extreme poverty• Illiteracy• Stranglehold of money lenders• High interest rates on loan• Long chain of intermediaries• Labour model for work• Social stigma• Lack of skills and competency• Gender bias

Changing the Rules of the Changing the Rules of the GameGame

Microfinance and

Micro-enterprises as

“Silver Bullets”

Micro-financeMicro-finance

1. Extensive mobilisation of women 2. Formation of micro-credit groups3. Capacity building to handle cash

transactions, bank accounts, government office, etc

4. Promotion of savings to create corpus 5. Internal lending to meet consumption

needs6. External loaning for productive purposes

Micro-enterprise: ChikankariMicro-enterprise: Chikankari

1. Organisation of women into production groups

2. Introduction of revolving fund3. Skills training & up-gradation to

enhance employability4. External consultancy for modern

designs5. Capability building for value addition in

work6. Marketing channel for finished goods

Enterprise Coordinator

Designer

Sanchalika

Production Group (50 women)

SHG SHG SHG

Member Member MemberMember

NGOITC

Info flow

Structure of micro-enterpriseStructure of micro-enterpriseFund flow

Only women as members

10-12 women as members

Revolving fund model for sustainabilityRevolving fund model for sustainability

NGOITC

Production Group “A” (50 women)

Production Group “A1” (50 women)

Production Group “A2” (50 women)

Revolving fund (Rs.6 lakh)

Installment payback

Revolving fund (Rs.6 lakh)

Installment payback

Revolving fund (Rs.6 lakh)

Chikankari value chainChikankari value chain

Production group

orders

orders

orders

orders

Finished goods

ITCNGO

Partner

Customers

Finished goods

Micro-finance and Micro-Micro-finance and Micro-enterprise enterprise Scale TodayScale Today

Inception 2004Inception 2004• No. of SHGs 193 • No. of members

2,725• Savings (lakhs)

10.32 • No. of women in Chikankari

250• Sales turnover (lakhs)

34• Wages distributed

15

Vision 2010Vision 2010•No. of SHGs 600•No. of members 10000•Savings to be generated Rs 1 crore•No. of women in Chikankari 600•Sales turnover Rs 2 crores

Micro-finance and Micro-enterprise Micro-finance and Micro-enterprise Vision for TomorrowVision for Tomorrow

Home Makers to EntrepreneursHome Makers to Entrepreneurs

• Creates women entrepreneurs• Eliminates long chain of

intermediaries• Creates various capitals-social,

economic, human• Provides regular source of income• Captures greater value chain

Value Creation for SocietyValue Creation for Society

• Better nutrition, health care & education for children

• Poverty alleviation• Brings gender equality• Improvements in food security and

quality of diets• Induces wider movements of women

for social, political and social change

Lessons for replicationLessons for replication

• Tripartite relationship model for inclusive growth

• Working model based on revolving funds• Micro-finance as the backbone• Choice of market oriented enterprise• Market linkages• Development through business model• Capacity building for continuous

improvements

Thank You