supply chain of rural artisan in India content

1. Supply Chain Of Produces Of
Rural Artisans
Presented By:
Umang Suthar(16MMCC26)
Vignesh Tamakuwal(16MMCC27)
Parth Thakar(16MMCC28)

3. 1) Needlework:
• Needlework of Gujarat is famous world over for its
elegance and accuracy.
• It’s includes ari bharat, abhala, Embrorodery Works.
• Toran is the most common embroridered doorway
decoration with hanging flaps which is supposed to
ventilates good luck.
2) Bandhani:
• Bandhani is famous for their intricate design and
patterns.
• It’s produce on superfine cotton mulmal muslin
sometimes combine with gold checks motifs worked in
the jamdani technique.
• It’s famous of Jamnagar, Bhuj, Mandvi.

4. 3) Bead work
• Motifs and patterns are dictated by the technique of
putting two and three beads together. Beadwork objects
are used in wall decorations, potholders, etc.
• The best beadwork is produced by the ‘Kathis' (tribal).
• specialty from Khambhat and Saurashtra.
4) Patola
• One of the finest handwoven sarees from Gujarat. The
famous Patola of Patan is known for its colourful
geometrical pattern, which are strikingly beautiful.

5. 5) Jewellery
• The art of making jewellery and precious stone-cutting
and processing is a traditional handicraft of Gujarat.
• The folk jewellery of excellent designs, characteristic of
each village and each community is a typical art of
Gujarat. Gold, Silver, Iron and brass works are antiquity of
Gujarat.
• 6) Furnishings
• Gujarat offers a wide range of furnishings from simple
and elegant cushion covers to quilts and bedcovers in a
wide range of styles. Pleasantly embroidered and with
micro mirrors, they have geometrical or animal motifs,
patch worked, etc
• The traditional floor spread ‘namdas’ and ‘dhurries’ from
Kutch, is woven with camel and goat hair and even wool
and cotton.

6. 7) Pottery
• The oldest ancient craft and famous Pottery from Gujarat
is popular as it achieve excellence with traditional crafts.
• Clay utensils are made which are used by village homes
even today. Terracotta toys are another craft of the
potters of Kachchh, but it is in the Aravallis and Chhota
Udepur tribal lands that potters make the famous long
necked terracotta figurines of the Gora Dev (tribal horse
God), said to protect crops, villages and families from evil
spirits, evil intentions and natural calamities.
8) woodworks:
• Woodcarving is an ancient art of the state, which has
attained a very high standard of technical skill.
• Some of the best examples of woodcarvings are found in
temples and houses in many parts of Gujarat. Saurashtra
and Sanked in the Vadodara district are also known for
their lacquer work.
• It is famous in Sankheda near Vadodara, Rajkot, Kutch

7. 9) Textile culture:
• Gujarat has a unique dress culture which evolves the
Textile culture with its extravagant quality with
traditional and modern design patterns.
• The Rogan, zari, Tye and die and exclusive Patolas are
the state’s graceful textile culture patterns. Peacock
motifs, geometrical patterns, ikat weaving, akrakh
work are some of the excellent influence with
traditional and modern designs.
10) Zari:
• The Zari industry of Surat is one of the oldest
handicrafts whose origin can be traced to the Mughal
period.
• The history of the 'zari' industry of Surat dates back
to the Mughal period.
• 'Chalak', the 'Salama', the 'Kangari', the 'Tiki', mainly
the Ring and the 'Katori'

8. Problem facing artisans
• While crafts received royal and aristocratic patronage during pre-
Independence days, they have slowly lost relevance with the advent
of industrialization. Over the past 30 years, the number of Indian
artisans has decreased by 30%.
• It is estimated that in 2003, around 50% of household heads of
crafts-producing families had no education whatsoever, and more
shockingly, around 90% of the women in these households were
completely uneducated.
• The vast majority of artisans operate in informal work settings.
According to one study, only 9% of craftspeople benefited from
formalized employment, while 42% worked out of their homes.

9. Benefits
• Investing in the crafts sector offers tremendous opportunity to improve the
economic, environmental and social conditions of rural communities:
• Economic growth: The global market for crafts is USD 400 billion, of which
India's share is below 2%, representing a significant growth opportunity.
• Environmental benefits: Production processes used in crafts typically have
a low carbon footprint and promote the use of locally available materials as
well as natural and organic materials where possible.
• Social empowerment: Crafts production represents an opportunity to
provide a source of earning and employment for otherwise low-skilled,
home-based women, improving their status within the household.

10. Various action taken to encourage
artisans
• Harnessing the potential of this sector requires different types of
investments to preserve traditional crafts, strengthen the sector, and
improve the incomes of artisans. Dasra has identified the following four
key areas of investment: Handholding the artisan through the value
chain: Strengthening individual artisans engaged in production by
generating awareness among artisans about the value of their skill, and
training artisans continuously to upgrade their skills and product offerings.
• Increasing demand for crafts and strengthening market linkages: Reviving
consumer interest in crafts, and making crafts relevant to increasingly
urban lifestyles; strengthening branding efforts to enable Indian crafts to
compete in global markets, and developing new business models that
blend social and commercial goals.
• Strengthening the decentralized production model: To overcome the
fragmented supply chain, lack of organization and seasonal production
nature of the crafts sector, there is a need to provide business support and
leverage technology for information and process innovations to increase
efficiencies in craft production and enable artisans to produce more.
• Building a multi-stakeholder approach: The crafts sector needs increased
participation by different stakeholders such as government, financial
institutions, non-profits and academia in their areas of specialization.
Building a collaborative ecosystem will align the roles of different
stakeholders, each of whom can support artisans in different ways.

11. How can you
support the cause?
• Fund high-impact organizations that
have been identified by Dasra after
an assessment of 260 organizations
relevant to the report.
• Contact one of these organizations
to explore opportunities to partner.
• Share this page with people you
know to direct more support to the
cause.

12. Various programs to encourage artisians
1)Future Group ropes in rural artisans for Ethnicity in Gujarat

13. 2) The League Of Extraordinary Artisans In
Nirona, Kutch:

14. 3) Okhai:

17. Commissionerate of Cottage
and Rural Industries
• The majority of the population of the state live in rural areas. State
Government is firm to generate employment in large scale to literate
/illiterate unemployed artisans with less investment.
• Cottage and Rural Industries department is monitored by
Government’s Industries and Mines department and implementing
various schemes through subordinate offices.
• Employment generation scheme for individuals and artisan clusters
through Industrial cooperative societies is being implemented by
commissionerate of Cottage and Rural Industries.
• More over schemes are also running to give training in different
trades through training centres and to improve the skill of artisans
by adopting new updated technology.

18. Dattopant Thengadi Artisan Interest Subsidy Scheme
1)Purpose:
• The Handloom and Handicrafts artisans of Cottage industries,
Gujarat state require financial assistance for purchase of
machinery or raw materials for development of their business.
• For this, artisans have to depend on financial
institutions/private money lenders.
• Since their interest rates are high, it becomes difficult for the
artisans of Cottage industry to sustain themselves in the
present market.
• Under these circumstances, this scheme has been introduced
with an aim to provide working capital at low interest rates to
the workmen in urban and rural areas registered as artisans
with the Index-C of Cottage and Rural Industries Department.

19. 2)Maximum limit of loan:
• A beneficiary can avail a maximum credit
limit of Rs. 1,00,000/- for machinery or
working capital (for purchase of raw
materials) or both under this Scheme.
3) Interest Subsidy:
• Under the scheme, Interest subsidy will be
available at the rate of 7%, which shall be
credited in the beneficiary’s account, on half
yearly basis after receipt of the subsidy
claim from the Bank
4) Financial Institutions:
(i) Nationalized Banks (ii) All Regional Rural
Banks (iii) Co-operative Banks (iv) Public Sector
Banks (v) Private Banks

20. (5) The Artisans of Cottage Industries can get financial assistance
for the following purposes to develop existing or new business.
(1) To purchase raw material (2) To purchase equipment, tools and
machinery.
(6) Repayment of Loan:
• The instalments of loan shall be effective after disbursement of
loan, as fixed by the Bank. The loan, along with its interest, will
be repaid regularly within a period of minimum of one year (12
monthly instalments) and a maximum of three years (36 monthly
instalments), and this shall be binding upon the beneficiary.

22. Company
overview
Product Mix

23. Retail
Strategy
Store Mix
•Premium
•Regular
•Concept
•Online
Type of
Stores
•Self owned & leased Stores
•Joint Venture in Italy
•Franchisee in other Foreign Countries
Ownership
•Heritage Landmarks, Destination Stores
•Aesthetics connection to all things natural
Location &
Ambience
•Uniforms conveying their ideology
•Routine Visits to supplying weavers and training
programs
Staff

24. Business
stratergy
• Fab India’ s Regional Business Programs
• Rapid Expansion into newer cities
• Diversification
• Global Expansion
• Infusion of Funding

25. Business
Model
• FabIndia’s Strategy
• Business Model
• Fab India’s SCM Model

26. Distribution
Channel
Supply Chain
Management
Fabindia manages a direct and
effective SCM with more than
40000 weavers and artisans

27. MARKETING
MIX Product
1
Place
2
Price
3
Promotion
4

28. ONLINE
STRATEGY
FOCUS

29. • “The farmers know how to do farming but did not know the
technique to enhance production and didn’t have a market.”
• The purpose of it’s to accomplished by re-engineering the (vegetable
& fruit) supply chain by directly connecting the market place and the
producers.
• Once the business model is established, It is capable of creating
livelihood opportunities to ensure economic empowerment of
hitherto marginalized farmers in Bihar and in India.
• Kaushlendra Kumar, Founder and M.D. of Knids Green Pvt. Ltd.
Samriddhii: Redesigning the Vegetable Supply
Chain in Bihar

30. • In 2007, Kaushalya Foundation, a non-government, non-
profit organization, was created by Kaushlendra in the
name of his mother Kaushalya, to address managerial
issues related to poverty elevation by working closely with
the people at the grassroots level.
• Specific goals and objectives of the Foundation included:
• Organizing and professionalizing small and marginal
farmers towards market oriented farming activities
• Organizing and professionalizing street vendors and linking
them to the main stream economic activities of the society
• Economic empowerment of street vendors and vegetable
growers
• Connecting street vendors and growers to the mainstream
market operations
• Generating livelihood opportunities, and creating market
space for the poor farmers to provide them an identity and
hence life with dignity.

31. Bihar Economics Scenario
• Although the state of Bihar is blanketed with fertile ground and
fed with abundant number of rivers and streams, it continued to
remain as one of the poorest states in India
• It was the 12th largest state in India
• Close to 85% of its population lived in villages.
• However, the agricultural productivity was low.
• They were caught in a vicious (poverty) cycle as they did not have
the necessary resources to get rid of poverty, which in turn
manifested into many disadvantages for them.
• These disadvantages collectively worked in a cyclic process
making it virtually impossible for these farmers to break the
cycle.

32. • The economic condition of vegetable and
subsistence crop growers in Bihar was much
worse.
• They were virtually at the bottom end of a long
supply chain nested with intermediaries.
• In fact, there were at least six intermediaries
between the original farmer and the final
consumer.
• Village- level aggregator,
• Transporter,
• Commission agent,
• Wholesale seller,
• Semi-wholesale-seller,
• roadside vegetable vendor

33. Traditional
Supply Chain
Of bihar

34. • Most of these intermediaries did not add any value to the final
produce but earned a huge profit for just connecting the local
farmer with vegetable vendors and their consumers.
• By the time the farm produce was purchased by vegetable
vendors, the prices were so high that there was very little
room for any final mark up.
• In addition, as they operated in unauthorized spaces without
appropriate vending licenses they were held ransom by the
local police and civic administration.
• Most of these vendors worked as long as 16 hours a day. Their
profit margins were small. Also, they were forced to pay
weekly taxes to the local mafia.
• As their produce began to perish at the end of the day in their
open and unrefrigerated stalls, they were often left with no
option but to slash prices.

35. Managing Challenges
• First, vegetable farmers as well as the vegetable vendors in
Bihar were much unorganized and bringing them to a
common platform would not be easy
• Second, the informal and fragmented vegetable supply
chain needed complete reorientation with professionalism.
• This led to the third challenge, which proved to be the most
difficult to handle. He needed people to own his “dream”
and turn it into reality.

36. • One of the biggest challenges that he faced was that he
needed to win the trust of farmers without anything
tangible to demonstrate to them
• Firstly, the farmers were not ready to trust him and share
information. They were more comfortable to trade with
known “Biharis”.
• Secondly, the vendors were hesitant to leave their
established suppliers and switch over to Samriddhii as their
trading partner.
Managing Challenges

37. Business Model
• It was widely believed that the vegetable
supply chain in India suffered from endemic
problems, such as fragmentation and
manipulation by traders
• In India, an average vegetable vendor
bought his vegetables from middlemen,
who retained a margin of up to 50% of the
consumer’s price
• Kaushlendra wanted to break the monopoly
of these intermediaries, by creating a
business opportunity by organizing an
unorganized vegetable market segment.
• In order to fulfill these objectives, he
founded Knids Green Private Limited (KGPL)
in 2008.
• At the source centered in the rural areas of
Bihar, the company coordinated with
hundreds of farmers and farming clubs for
procurement.

38. • Further, in every village, five to six groups of a dozen or so farmers
formed collection and knowledge sharing groups called
Kisangaclubs.
• Each club elected a coordinator and two assistants who worked with
Samriddhi as collection agents.
• Since most farmers and, in some cases, entire villages grew only one
or two varieties of vegetables.
• Samriddhii extension workers have identified 20 profitable varieties
that can be grown in the region.
• Through the use of mobile technology, they coordinated the
Kisangaclubs and distribution centers to ensure steady demand for
all produce grown by club members.
• Due to effective and streamlined communication between all actors
of the supply chain, costs were kept low, uncertainties reduced,
resulting more cash surplus in the hands of the poor farmers and
vendors.
Business Model

39. Business
Model

41. In additional scenario -
Logistics Partnership
• Plan your business
• Create your own website
• Capital Investment
• Select logistics partner
Effect on six main drives
• Facilities
• Inventory
• Transportation
• Information
• Sourcing
• Pricing

42. Create your own website
Step 4 Put Your Website Plan into Action
Step 3 Decide on a Logo
Step 2 Outline Your Website Content
Step 1 Choose and Register Your Small Business Website’s Domain
Name

43. Select logistics-transportation
partners
• How to connect with them
• Open contact (web-site)
• Schedule a meeting
• Sign a contract
• Starts delivery

44. ORDER FULFILLMEN
• We pick-up and deliver products (ordered online) from our partner
websites to end-customers using automated information systems for
end-to-end order tracking.
• We offer quick remittance and guaranteed Last mile delivery of the
majority of orders anywhere in India within 24 to 72 hours, every day
for 365 days a year - including Sundays/Holidays.
• The services include Pre-paid and Collect-On-Delivery (acceptances of
Cash or Digital payment solutions modes).
What Service logistics partner provides ?

45. REVERSE LOGISTICS
• We offer tailor-made solutions on
Reverse Logistics in which effective
coordination with end-consumers
ensures timely pick-up and delivery of
products back to partner
establishment within 24 to 72 hours of
intimation, every day for 365 days a
year - including Sundays/Holidays so
that end-customers receive their
refunds in a timely manner.
• This unique service is supported by
ready-to-ship packaging with best in
class process capabilities in ensuring
ease of pickup and returns.

46. ECOM FULFILLMENT
SERVICES (EFS)
• We are a Company with immense
warehousing and process capabilities
to provide a wide range of fulfilment
services including warehousing and
order management that meet the
dynamic needs of our customers.
• Our state-of-the-art mega warehouse
facilities, strategically located in key
geographies across the country,
provide tailor-made fulfilment service
solutions supported by technology and
automation.

47. ECOM NETWORK
SERVICES (ENS)
• We offer B2B (hub to hub) goods
transport service through our express
network, specially designed for Co-
loaders, Cargo booking agents and other
B2B players.
• We help the booking partners move their
cargo through our GPS enabled closed
body vehicles (containers) and provide
24x7 goods retrieval at our hubs as they
benefit with the best of transits offered by
Company scheduled network runs.
• The service is supported by our well-
established customer service centre.

48. ECOM CROSS-BORDER
SERVICES (EXS)
• Our uniquely designed service offers end-to-end cross-
border e-commerce logistics solutions both in
managing import and export orders. Under this
service feature, customers shopping on international
e-tailers enjoy the benefit of faster deliveries at their
doorstep thereby offering unmatched access to
international e-tailers looking to expand their footprint
in India.
• Similarly, services are extended to Indian e-tailers
wanting to fulfil the orders placed online by customers
residing in other countries. The services include
Customs clearing, bonded warehousing and deliveries
at the doorstep of end-consumers.

49. VALUE ADDED SERVICES
• Ecom Branded Services (EBS):We offer a unique
provision where our dedicated Pick-up and
Delivery Associates provide services donning our
customers' branded uniform enriching the brand
experience for end-consumers.
• Try & Buy : We enhance the overall experience of
product evaluations by providing a comfortable
and customer-friendly returns management to the
end-consumers. The service featured with
streamlined operations enhance transparency and
strengthen long-lasting relationships with your
valued customers.

50. VALUE ADDED SERVICES
• Switch Deliveries : Today’s customers expect an
exchange of products that they are not satisfied with as
quickly as possible. We help transform return processes
into convenient customer experiences and that’s why
our delivery operations offer the flexibility of exchange
of products with new ones at one go, in accordance
with your exchange policy.
• Valuable Cargo Handling: We offer the highest level of
security and surveillance when transporting valuable
items like gold, precious art pieces, gems and jewellery.
We use secured vehicles and highly protected storage
areas in ensuring safe and secured delivery of your
valuable shipments.

51. Conclusion
• If the rural market has to expand and grow, it is not enough to just concentrate on
marketing of manufactured goods, but it is also necessary to pay adequate
attention to the marketing aspect of the rural product namely, agriculture
produce of rural/cottage industries and rural artisan.
• Such on approach will help rural population in generating adequate displaceable
income for purchase of manufactured goods

52. Thank You