T R I C H Y
H A
Diagnostic Study
N D
Trichy Handloom Cluster
L O O M
C L U S
Diagnostic Study Report of
T E
Trichy Handloom Cluster
R
T R I
Contents
C H
S No
Topics
Page Nos. Y
Executive Summary 1
Textile Industry Scenario
2
His isto torric ical al Ev Evol olut utio ion n of th the e Cl Clu ust ste er
3
Cor ore e Clu Clust ster er Act ctor ors s and and In Inst stit itut utio ions ns
4
Ana naly lysi sis s of Bu Busi sine ness ss Org rgan anis isat atio ions ns
H A N D
5
Inte In terr Fir Firm m In Indu dust stri rial al Org rgan anis isat atio ions ns
6
SWOT An Analysis of of th the Cl Cluster
7
Vision of the Cluster
8
Problems and Gaps
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9
Implementation Strategy
M
10
L O
Action Plan C L U S T E R
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EXECUTIVE SUMMARY
I
The Handloom Industry in India offers livelihood to masses all over the
C
country. Despite the government schemes, the Handlooms in many parts of the country are struggling to survive. Trichy is one such place where the
H
handloom industry is in the declining trend for the past 5 years. Y
The ancient 300 BC Chola capital called Woraiyur, is the today’s Trichy. The handloom industry situated in and around the district tells the pathetic tale of the
surviving
weaving
communities.
The
reasons
are
many
fold.
Globalization, changing market trends, growing production of these varieties in powerloom, highly fluctuating yarn market, lethargy of the weavers towards the activity, mismanagement of the cooperative institutions and
H A N
misuse of the government rebate scheme are some of the reasons attributed to the state of affairs of the handloom industry. Due to these reasons about
D
50 % of the weavers left the area in search of livelihood to other districts and even to the nearby state Kerala.
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The chapter 1 deals with the global textile industry scenario to the present
O
handloom industry in Trichy district and the market share of the major cluster product, saree.
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INCOMPLETE. FULL FORM WILL BE SENT IN DUE COURSE C L U S T E R
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1.0 TEXTILE INDUSTRY SCENARIO 1.1
Global Textile Industry Scenario
Global Textile Market today is worth more than $500 billion and it is still growing
I C H
every year. Textile and apparel trade represents nearly 6% of total world exports. Textile Trade has exploded eighty-fold during the past forty years, from under $6
Y
billion in 1962 to $453 billion in 2004. The more labor-intensive apparel export sector has grown more rapidly than textile exports. The recent globalization of the
H
textile trade has opened up highly demanding and evolving requirements for outsourcing of textiles. During the last quarter of the previous century, the share of
A
developing countries in world textile exports improved from 15 to 50 per cent.
1.2
Textile Agreements Pre & Post MFA
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The Trade in Textiles from 1974 – 1994 was controlled under MFA (Multi-Fiber Agreement) through which a particular country is restricted to export its textile
L
products beyond a certain level to European and US markets. It is clear, efforts to liberalise trade and textiles has been tough. The key players from the developed
O
countries took protective measures and made heavy investments in textile, and the result, the developed countries became the most capital-intensive nations within the textile manufacturing segment. At the same time, developing countries were subject to quantitative restrictions, thus keeping a strong hold on textile exports,
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keeping the edge by optimum textile production. The MFA was terminated with entry into force of the World Trade Organization (WTO) and its Agreement on
C
Textiles and Clothing (ATC) on 1 January 1995. The WTO renewed the MFA with an Agreement on Textiles and Clothing (ATC), which agreed that all quotas on textiles
L
and clothing would disappear between member countries on January 1, 2005. The expiration of ATC marked the end of quotas, limiting textile and clothing trade between the WTO members. While India and China are likely to emerge as winners, the main losers after quota will be quota-restricted countries who have enjoyed the benefits and protection for more than 40 years. Costs remain the driving factor in the post-quota world but now the advantage will be greater as retailers are bound to raise the bar higher on the responsiveness and flexibility from their suppliers.
U S T E R
T R
1.3
Competitiveness and the Future
Manufacturers in developed countries are more likely to adapt by relocating
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operations to production centers in low wage countries. Those who choose nearby locations will also benefit from market proximity and speed of response. Textile
H
manufacturers supplying regional and domestic apparel producers have survived by investing in technology. It allows them to achieve some of the highest productivity
Y
in the world. Innovative approach has helped manufacturers to differentiate their products and maintain an edge over competitors. Quota elimination has its flip side as well. It will force down clothing prices further and will also help retail buyers to concentrate upon the most competitive suppliers in terms of cost, quality and productivity. It will be a race and emerging winners would include companies who will be able to deliver large volumes from integrated structures through partnership
H A N
and other ventures. The quantum leap in exports of textiles from developing countries occurred despite high tariffs and quantitative restrictions imposed
D
particularly by economically developed countries. It is important to highlight the role of the multifunctional textiles, intelligent textiles, eco-textiles, e-textiles and
L
customized textiles in the future of the textile-apparel sector to cope up with the changing face of textile industry.
1.4
Indian Textile Industry Scenario
The Indian Textile Industry has an overwhelming presence in the economic life of
O O M
the country. Apart from providing one of the basic necessities of life, it also plays a pivotal role through its contribution to industrial output, employment generation,
C
and the export earnings of the country. Currently, it contributes about 14 percent to industrial production, 4 percent to the GDP, and 16 percent to the country’s export earnings. It provides direct employment to about 35 million people. The
L U
Textile sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the
S
improvement of the economy of the nation. The Indian textile industry is extremely varied, with the hand-spun and hand woven sector at one end of the spectrum, and the capital intensive, sophisticated mill sector at the other.
T E R
T R 1.5
Indian Handloom Industry Scenario
Handlooms constitute the rich cultural heritage of India. The handloom weaving, as an economic activity, provides livelihood to the people. The element of art and craft present in Indian handlooms makes it a potential sector for the upper segments of
I C H
market in domestic as well as global. The sector accounts for 13% of the total cloth produced in the country. Innovative weavers with their skillful blending of myths,
Y
faiths, symbols and imagery provide their fabric an appealing dynamism. The strength of Handloom lies in introducing innovative design, which cannot be
H
replicated by the Powerlooms. In spite of the Government intervention through financial assistance and implementation of various development and welfare schemes, the number of handlooms is continuously reducing all over the country. The reasons are manifold. New generation are not readily joining the weaving activity. Low wages, continuous increase in yarn prices, obsolete technologies,
A N D
unorganized production system, low productivity, inadequate working capital, conventional product range, weak marketing link, overall stagnation of production and sales and, above all, competition from powerloom are the factors forcing the
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handloom sector difficult to survive.
1.6
Tamil Nadu Handloom Industry Scenario
Handloom industry in Tamilnadu plays an important role and provides employment
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for more than 4.29 lakh weaver households and about 11.64 lakh weavers. According to the Director of Handlooms & Textiles, about 2.11 lakh handlooms are
C
functioning in 1247 handloom weavers’ co-operative societies and the remaining looms are outside the co-operative fold. The handloom weavers’ co-operative societies mostly exist in Rural and Semi-Urban areas, where there is large concentration of handloom weavers. The handloom weavers co-operative societies have produced 1083.26 lakh metres of handloom cloth valued at Rs.559.72 crore
L U S
and sold to the extent of Rs.696.58 crore during the year 2004-05. There is an increase of sale of handloom cloth worth Rs.122 crore in 2004-05 over previous year 2003-04. The number of handloom weavers societies working on profit has
T E
been increased from 527 to 601 during the year 2004-2005. Marketing is the major factor for the performance of the handloom weavers co-operative societies.
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T R 1.7
Trichy Handloom Industry Scenario
I
Trichy Handloom cluster consists of many sub-clusters with in a radius of 50 km.
C
They are Manamedu, Musiri, Paithamparai, Thathiengarpet, Kottathur, Thuraiyur, Poovalur, Mettupalayam, Samayapuram etc., 5 years before, there were more than 10000 looms were operating in the cluster.
H
Due to the price competition from
powerloom sector, the trend is continuously declining. To day 1/4 th of the business
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only is happening. 3/4 th of the master weavers, and merchant manufacturers left the business. As the survival becomes difficult, most of the weavers left the area and migrated to Tirupur, Karur and Kerala in search of jobs. Most of the weaver members are unhappy about the functioning of the societies, as there is no continuous employment provided by the societies. The main products of the cluster are Cotton sarees, cotton voile fabrics cotton dhotis and uppers. The total turnover
H A N
of the cluster estimated to be around Rs. 10 crores, in which 70 % are woraiyur cotton sarees, 20 % are voile fabrics and 10 % are of dhotis and uppers.
D
The total market size of the cotton saree in India, according to the Textiles
L
Committee’s consumer house hold survey, is 330 million pieces. The Cotton sarees produced in Trichy cluster for an year is estimated to be 3,00,000 pieces of value around 7.5 crores, which works out to be only 0.1 % of the country’s requirement. The total handloom cotton sarees produced in Tamil Nadu, according to the Statistical Hand Book of the Department of Economics and Statistics for year 2005,
O O M
is 59, 21,167. The Trichy cluster contributes 5 % of the handloom cotton saree production in Tamil Nadu. C L U S T E R
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2.0 HISTORICAL EVOLUTION OF CLUSTER 2.1
I
History of Trichy Handloom Cluster
C
Woraiyur, a part of present day Tiruchirappalli, was the capital city of Cholas since 300 B.C. Later, Woraiyur came under
H
the control of Mahendra Varma Pallava I,
who ascended the throne in AD 590. Till AD 880, this region was under the
Y
hegemony of either the Pallvas or the Pandyas. It was in AD 880, Aditya Chola brought a downfall to the Pallava dynasty. From that time onwards Tiruchirappalli and
its region became a part
of
Greater
Cholas.
In
AD
1225
the
H
area
was occupied by the Hoysulas. Afterwards, it came under the rule of later Pandyas
A
till the advent of Mughal Rule. Tiruchirappalli was for some time under the Mughal rule, which was put to an end by the Vijayanagar rulers. Governors
of
Vijayanagar
Empire,
ruled this area till
The Nayaks, the
AD
1736.
It was
N D
Viswanatha Nayaka who built the present day Teppakulam and the Fort. The Muslims rules this region again with the aid of either English armies.
the
French
For some years, Tiruchirappalli was under the rule
or
the
Chanda Sahib
and Mohamed Ali. Finally the English brought Tiruchirappalli and other areas under their control.
L
The district was then under the hegemony of British for about 150
O O
years till the independence of India. As the sarees woven in and around the ancient Cholas capital Woraiyur, since then it is called Woraiyur sarees.
M
2.2
C
Present day Trichy Handloom Cluster
To day it is estimated that about 2500 handlooms operate in both Co-operative and
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Private sector. As per the statistics available with the Assistant director of Handlooms Trichy, the total number of handlooms in the cooperative sector is 4255 in which 1461 are working looms and the remaining are idle. The value of production during March, 2006 was around 45 lakhs only. The current population dependant on weaving and allied works living in Trichy district is estimated to be
U S T
around 25,000 0nly.The weaving communities are Padma Saliyars, Devangas and Mudaliars. Out of 29 Co-operative societies, 27 are working, and one is just
E
registered and one is dormant. Though the number of profit making societies is 19 in number, the accumulated loss of these societies runs into more than 5 crores.
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T R
M/s. Thathiengarpet Weavers Co-operative Society, once popularly known for its quality dhothies, is almost at the verge of closure and presently no activity. The handloom industry in the cluster comes down drastically in the last 5 years. The
I C
voile fabrics produced on handlooms reduced from 5 lakh metres to about 1 lakh metres. The competition from powerlooms forced few master weavers to switch
H
over to powerlooms. Y 2.3
Social Profile of Trichy
Trichy is one of the biggest industrial city of Tamil Nadu state. The population of Trichy district is about 22,00,000 according to the data available for 1991 census. Out of which 11,08,016 are male population and female population 10,88,457. There are about 145 large scale industries and 802 small industries are working in
H A N
the outskirts of Trichy. Bharat Heavy Electricals Ltd, a successfully run popular public sector large scale industry is situated in Trichy. Trichy is well connected with other cities by train routes and flight routes. Airport is situated about 3 km from
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the city. Direct flight to Columbo, Sri Lanka is available. The river Cauvery flows through the city. Besides Trichy is a famous tourist centre of Temples viz Srirangam Ranganathar Temple,
O
Samayapuram Mariamman Temple and Tiruvanikkaval
Temple.
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C L U S T E 2.4
Woraiyur Cotton Saree R
T R
The main product of the cluster is Woraiyur Cotton saree. About 70% of the cluster production is sarees only. Finer cotton counts 60s, 80s, 100s, 120s, 2/120s are being used to make these varieties. area mills through NHDC.
The cotton yarn is bought from Coimbatore
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The approved dyer for Co-operative Societies operate
from Jeyankondam situated 95 km from Trichy. Only few small dyers are working in
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Trichy Woraiyur area. The dyeing is also carried out in Coimbatore, Salem, Tiruchengode areas for export quality voiles. The quality of particulars of the saree
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and other varieties is as below:H
S.No. 1 2 3 4 5 6 7 8 9 10
Variety Saree Saree Saree Saree Saree Voile fab. Dhoti Dhoti Uppers Uppers
Warp 100s 80s 80s 100s 60s 80s 100s 80s 80s 100s
Weft 100s 100s 80s 2/120s M 60s 80s 100s 80s 80s 100s
EPI / PPI 80/76-80 80/76-80 80/76-80 80/72-76 72/64-68 80/68-76 88/76-80 88/76-80 80/76-80 80/76-80
Width 47-50” 47-50” 47-50” 47-50” 47-50” 46-48” 50” 50” 36” 36”
Length 6-9 Yds 6-9 Yds 6-9 Yds 6-9 Yds 6-9 Yds P Length 4 yds 4 yds 2 yds 2 yds
A N D L O O M
C L U
3.0 3.1
CORE CLUSTER ACTORS AND INSTITUTIONS
Core Cluster actors
The core cluster actors are weavers of both cooperative and private, Handloom
S T E
Weavers Co-operative Societies, Master weavers, Merchant Manufacturer / Traders, R
T R
Co-optex, Textile Showrooms, Dyers, NHDC, Yarn Dealers, Cooperative Banks, I
Integrated Cooperative Development Organisation.
C 3.2
Office of the Asst.Director of Handlooms & Textiles H
The Weavers Co-operative societies come under the Administrative Control of The Asst. Director, Handlooms & Textiles, Govt. of Tamilnadu. Since no elected board is
Y
functioning in any of the society, the officials from Asst.Director of Handlooms & Textiles function as Special Officers and control the societies in day-to-day activities.
H
Welfare and developmental schemes of Central & State Govt. are also
implemented and monitored by this office. NID has been entrusted to develop new
A
designs for Woraiyur sarees. N 3.3
Financial Institutions
D
3.3.1 The Trichy Dist. Co-operative Bank
L
The Trichy Dist. Co-operative Bank offers credit facility to the Co-operative societies including their working capital needs. For societies, the cash credit sanctioned for the year 2005-06 has been Rs.417 lakhs. Out of which Rs.383 lakhs availed. Since
O O
about 50% of the societies are working under loss, there is no credit facility M
extended to these societies.
3.3.2 The Commercial Banks
C
The commercial Banks like Lakshmi Vilas Bank offers loans to women handlooms
L
SHGs in Manamedu sub cluster. Apart from this, there is no evidence of banks U
offering loans to the handloom industry.
3.3.3 Integrated Co-operative Development Project S
The Integrated Co-operative Development Project is a programme under National Co-operative Development Corporation (NCDC).
They identify co-operative
societies of all sectors and provide working capital to the viable selected societies. Some of the loss making handloom co-operative societies in Trichy cluster was also given working capital under this project.
T E R
T R 3.4
Weavers’ Service Centre
I
The Weavers’ Service Centres (WSC) impart training to weavers to upgrade their skill and increase productivity. They play a vital role in conducting research and development evolving new designs and reviving traditional designs. The WSCs are
C H
functioning under the Office of the Development Commissioner for Handlooms, New Delhi. The WSCs primarily render extension services, which involve transfer of
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design inputs, skills and technology evolved to the weavers at their cottages.
3.5
Bharathidasan Institute of Management (BIM)
The BIM is a reputed Management Institution in Trichy, offers MBA Course to students. The resources of the Institute may be used for training needs of the
H A N
handloom industry personnel in management aspects. D 3.6
District Rural Development Agency (DRDA) L
The DRDA is a State Government Body working and implementing schemes for the rural development. There is no specific scheme for handloom weavers under DRDA.
O
However, they work with SHGs (Self Help Groups) of women and men directly and through NGOs.
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3.7
Self Help Groups ( SHGs)
There are about 6 SHGs identified in the cluster engaged in Handloom weaving.
C
They have obtained loan from the local private bank, produced own handloom products and participated in the Exhibition for marketing their products.
3.8
Trichy Zilla Handloom Textile Producers Association
Associations play an important role in the development and sustainability of the industrial clusters. Trichy handloom cluster also has many associations in the
L U S T
business. But none of the associations are actively involved in the development of the business now. Woraiyur handloom merchant manufacturers are having an
E
association in the name of Trichy Zilla Handloom Textile Producers Association. It is a registered association with a membership base of about 50 members. It was
R
T R
learnt from them that more than 50 % of their members have already left the handloom saree business due to competition from powerlooms and the declining market for handloom sarees. The association runs a marriage hall. They organize
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meetings in every six months to discuss the issues of importance. They also distribute free school books and uniform cloth to the poor and needy students. Now
H
a days they discuss the handloom business very rarely. Their last meeting took place two years before when the cenvat tax was imposed on cotton yarn. 3.9
Y
The Manamedu Warping Association H
The warping is a sub process before weaving. There were about 400 warpers were working before 5 years. But now there are only 100 throughout the Trichy district. The Manamedu warpers have an association. It is not a registered association. The
A N
warpers in Manamedu area assemble on the new moon day, discuss any issue related to their warping and do the chit fund activity.
D
3.10
L
The Manamedu Sizing Association
The sizing people have an association in Manamedu. It is also not a registered association. These people meet on every full moon day and discuss issues of importance and run the chit fund activity. They donate Rs. 1000/- when a member dies. These people help the handloom industry, but a neglected lot.
O O M
C L
4.0 ANALYSIS OF BUSINESS OPERATIONS
U S
4.1
Cotton Yarn Supplier T
The raw material for the handloom industry is cotton yarn.
The cotton yarn is
supplied to both cooperative and private handloom weavers through NHDC and
E
local yarn dealers. The raw material is supplied from Coimbatore and Rajapalayam. R
T R
The cotton yarn counts of 80s, 60s, 100s and 120s are being used for weaving sarees, dhotis, and export voile fabrics. operating in Trichy.
There is no yarn dealers presently
A yarn dealer M/s. K.R.Velayudha Mudaliar Company,
I C
Jeyankondam is the only supplier of cotton yarn to the master weavers of this region. There were many yarn dealers operating from Trichy have been closed as
H
the market for the sarees reducing continuously. Y 4.2
Dyeing
The dyeing activity is carried out only by few small dyers in Trichy. There is no
H
approved dyer in Trichy. The cotton yarn for societies being dyed at Jeyankondam situated
95
km from Trichy.
For private master
weavers
and merchant
manufacturers, the dyeing of cotton yarn is carried out at Trichy by about 5 dyers. Mostly, Napthol and Vat dyes are used for dyeing. treatment are also followed to some extent.
Direct dyes with some after
The dyeing charges per bundle of
A N D
2.25 kg ranges from Rs. 120/- to Rs. 250/-. L 4.3
Warping O
Warping is a process to convert the cotton yarn in hank form / cone form to ball / sheet ball form suitable for sizing and weaving on handlooms. There were about
O
400 warpers working all over Trichy Dist. five years back. At present, their number reduced to about 100.
The warping charges are made on No. of knots basis.
M
Rs.2.40 per knot is charged as warping charges. 50% of this i.e Rs.1.20 goes for winding bobbins. The winding is a household activity carried out by ladies in a no. of houses in the same area.
A warper gets Rs.15/- per warp as wages.
The
warping frame can accommodate 2 ½ warp per cycle. 3 cycles can be done per
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day. Therefore the warper gets Rs.45/- for a full day. U 4.4
Street Warp Sizing S
Sizing is a process to add strength to the cotton single yarn warp by applying size, paste uniformly throughout the length and breadth of warp.
The size solution
T
locally called Kanji (The liquid extract of boiled rice) is collected by old ladies in the nearby households for meager amount of Re.1/- The person who collects the Kanji
E
gets Rs.5/- to Rs.20/- depending upon the quantity for 1 to 4 warps. The length of R
T R
the warp for sizing is around 35 yards. The accessories used for sizing process are locally called pillu (Brush), Dhambu- a frame to hold both sides of warp, Kayiru – a rope used to tie the frame to the ground, Kolu –wooden lease rod.
The sizing
I C
charges works out to be Rs.4.30 per knot. For each warp, about 16 knots are used. So the cost of sizing works out to be Rs.69/- per warp. About 5 to 7 people are
H
required to perform the sizing process. 4 to 6 warps can be sized in a day. So the wages of an individual sizer works out to be Rs.40/- to Rs.50/- per day.
Y
Sizing Ingredients & wages per warp S No
4.5
Ingredients
Expenses Rs
1
Charges for 5 warps
345.00
2
Rice extract
3
Coconut oil 25 ml
12.50
4
Raw rice flour
20.00
5
Wages @ 10 for 5
5.00
250.00
H A N D L
Weaving
Weaving is a process of interlacement of two series of threads warp and weft to
O
form fabric. Cotton yarn is used for weaving the sarees, export pieces and dhotis. There are few silk weavers also noticed in the cluster. The wages per day for the weaving activity for a weaver ranges from Rs. 50 to 75. As more than 50 % of the weavers are of above 50 years age the productivity per weaver and earning also
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slow down. C 4.6
Handloom L
The process of weaving is done with the help of the loom. As it is operated by hand by the weaver, it is called Handloom.
The accessories used in the handloom are
U
sley, shuttle, picker, warp beam, cloth beam, reed, healds, lease wooden rods, pirn. Raised Pit Looms are used to weave the sarees, dhotis and export voile fabrics in
S
and around the Trichy Handloom Cluster. T 4.7
Weavers E R
T R
Weavers have own looms and operate from their households.
There are two
categories of weavers viz., weavers under cooperative fold and weavers under master weavers or private weavers.
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4.7.1 Weavers under Cooperative fold
H
The cooperative society weavers receive the sized warp from cooperative societies, weave the sarees or dhotis or export pieces and return back the said products to
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societies for marketing to Merchant Manufacturer, Co-optex and direct sales to consumers. They receive wages for this activity. The continuous employment is not
H
ensured to the weavers of the cooperative societies. The cooperative weaver gets 20 % more wages compared to the private weavers. The same cooperative weaver
A
when weaves for a master weaver accepts the 20 % less wages. N
4.7.2 Private Weavers D
The private weavers mostly receive the dyed yarn from master weavers and get it warped and sized outside; weave the sarees, dhotis and export pieces and return back the woven products to the master weavers / merchant manufacturer.
The
weavers also receive the warped and sized ball warps for weaving directly from master weavers. The private weavers get nearly 20 % less wages compared to the cooperative weavers. 4.8
O O M
Co-operative Societies
There are about 27 Handloom Cooperative societies operating in Trichy District with about 1200 working looms. Their consumption of cotton yarn per month works out to be 15 Bales of 90 kg each. The yarn is supplied mostly from Coimbatore cotton spinning mills through NHDC. The cotton yarn is dyed according to the requirement of colours with the approved dyers.
L
Then it is issued to the warping and sizing
C L U
people before issued to the weaver members. S 4.9
Master Weavers T
The master weavers of about 50 Nos. operate in handloom area from all over Trichy District. They procure cotton yarn from dealers, merchant manufacturers and dyers
E
and supply to warpers and sizers then to weavers and get the woven sarees, dhotis, export pieces and gives back to merchant manufacturers/ exporters.
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4.10
I
Merchant Manufacturers / Traders
There are about 25 merchant manufacturers operating in the Trichy region.
Their
yarn requirements are met through the yarn dealer of Jayankondam situated about 95 km from Trichy. market.
C H
They dye the yarn according to the requirements of the
They supply the dyed yarn to warpers and sizers before issued to the
individual weavers and small master weavers of different areas in Trichy.
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The
weavers weave the sarees and returns back to them. There is a wage difference of about Rs.100/- between private and cooperative societies. finished sarees to throughout Tamilnadu, Andhra Pradesh Presently, their market size reduced about 75% competition from powerloom sector.
They supply the and
H
Karnataka.
in the past 10 years due to
There is an association of Trichy Zilla
Handloom Textile manufacturers with a membership of about 50. Presently about 10 merchant manufacturers are actively involved in Handloom saree business. 4.11 Co-optex
A N D L
Co-optex is an Apex Handloom fabrics marketing organization of Tamilnadu run by The Tamilnadu Handloom Weavers Cooperative Societies Ltd., which sells Rs.400 crores worth handloom products in a year through their showrooms all over India.
O O
The Co-optex procures handloom products from co-operative societies throughout Tamilnadu.
They place production plan in advance to the societies and monitor
M
their production quality control and procure and supply to showrooms throughout India. The co-optex also runs yarn godowns in other parts of Tamilnadu. The yarn from co-operative spinning mills are being sold to co-operative societies through their yarn sales depot.
C
As the co-operative spinning mills do not produce finer
count yarn, and the Trichy consumes only the finer counts of yarn, Co-optex does not have yarn sales depot
in Trichy.
L U S
4.12 Textile Showrooms T
Besides the sarees woven in and around Trichy area are also sold through popular retail outlets like Thaila Silks, The Chennai Silks, Nalli Silks and Sharatha Silk textile
E
showrooms. The master weavers take orders from these showrooms and get it woven by weavers and supply back to the showrooms.
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T R I 4.13 Role of Women and family members
C
The women in the cluster play an important role in weaving the sarees, voiles, dhotis and uppers. Without their assistance, the weaving activity is not possible. For weaving, continuous flow of weft is necessary. The winding of weft on pirns is done by household ladies.
H Y
The winding of bobbins for warping process, is also
carried out by the women folk. For the sizing process, the size paste is collected H
from households by old ladies.
A N D
Warping Process in Progress
Sizing Process in Progress L O O M
C L U
5.0 INTER FIRM INDUSTRIAL ORGANISATION 5.1
Handloom Saree Production Process Map
Raw Material Cotton Yarn
S T E R
T R I
Dyeing
Warp Preparation
C
Weft Preparation
H Y
Winding Winding
H A
Warping N
Pirn winding
D
Sizing L O
Warp Joining O M
Warp Gaiting C
Weaving L U
5.2
Cluster Map
S T E R
T R
BIM
NHDC
Coop Tex
Textile Show Rooms
I C
AD office Trichy
Design Institutes Society
Weaver Coop
Y
Merchant Mfr Weaver Private
Warping
WSC
H A N
Sizing Master Weaver
Warping Assn
H
Sizing Assn
Handloom Assn
D L O O M
Before Intervention
After Intervention
C L U S T E R
T R
6.0 SWOT ANALYSIS THE CLUSTER 6.1
Strength 6.1.1
C
Finance
•
Availability of Credit facilities from Co-operative Banks
•
Availability of banks for private sector
6.1.2
Production
•
Traditional Weaving skill
•
Availability of Raw material
6.1.3
I
Marketing
•
Woraiyur Cotton sarees have very good market
•
Private master weavers have good market linkages
H Y
H A N D L
6.2
Weakness 6.2.1
O
Finance
•
Working capital not available to loss making societies
•
No proper working capital management
•
Lack of professional management
O M
C
6.2.2
Production
•
Feeling of disgust on weaving
•
Wages remain stagnant in spite of inflation
•
Inconsistent supply of raw material to weavers
•
Weavers are aged. Young generation not encouraged
•
Lack of Innovation in designs
•
Reducing Production every year
•
Absence of yarn dealer and approved dyer in Trichy
L U S T E R
T R
6.2.3
Marketing
•
Societies have Weak Marketing linkages
•
Selling only on rebate ( cooperative )
•
Lack of own showrooms
•
No dynamic marketing activity
Opportunity
6.3
6.3.1 •
Finance
I C H Y
H A
To avail the schemes of new generation banks
6.3.2
Production
•
To go for new value added products
•
To go for new innovations
6.3.3
Marketing •
To go for direct export
•
To explore newer markets
N D L O O
Threats
6.4
M
6.4.1 •
Finance
No support for Handloom Industry from FIs C
Production
L
•
Stiff competition from power looms
•
Ineffective enforcement of handloom reservation act
U S
Marketing
6.4.3 •
Growing misuse of rebate scheme
•
Emerging new marketing with Big Retail showrooms
T E R
T R
7.0 VISION OF THE CLUSTER
I C H Y
H
THE HANDLOOM WEAVERS IN TRICHY CLUSTER WILL
A
BECOME DYNAMIC AND SELF SUFFICIENT
N
TO PRODUCE MARKET - DEMAND VARIETIES
D
BY CONTINUOSLY FOCUSSING ON QUALITY
L
AND INNOVATIVE DESIGNS FOR THE
O
NICHE HIGHER END SEGMENT
O
OF THE SAREE MARKET
M
BY 2010. 8.0 PROBLEMS AND GAPS 8.1
The mind set of the weaving community is highly disturbed. Their very survival is at stake.
8.2
L U S
Due to tough competition from powerlooms, the handloom sarees and dhotis market has reduced to 1/4
C
th
T
in the last 5 years. Similarly, the no. of looms,
weavers, master weavers, merchant manufacturers, traders has also been
E
reduced. R
T R
8.3
The traditional method of manufacturing is only followed despite ever changing market.
I C
8.4
The aged weavers are not ready to change the varieties to earn more wages.
H
8.5
No proper linkages with designers or textile institutions.
Y
8.6
There is no innovation in the handloom sarees and so the market is shrinking H
every year. 8.7
Lack of professional management in the working of handloom co-operative societies.
8.8
A N
Absence of designer for the societies with technical skills D
8.9
Lack of approved dyers in Trichy. Waste of time due to transportation to approved dyer situated 95 km away.
8.10
The system of allocation of yarn by DH office through AD office and NHDC makes inordinate delay which affects their operation.
8.11
More than 50% of the cotton yarn meant for distribution to the handloom society members are diverted to the local private weavers.
8.12 Improper linkages with raw material supply and marketing results in low
L O O M
C
quality & defective goods and unmarketable products. L
9.0
IMPLEMENTATION STRATEGY U
9.1
Awareness Programme S
More awareness programmes will be organized amongst the sub-cluster weavers, master weavers, and society managers, self help groups separately to bring
T
confidence and commitment for the successful implementation of the programme, within a period of six months.
E R
T R 9.2
Project Launch Programme
I
The project Launch Programme will be organized inviting all the stake holders viz., weavers, master weavers, merchant manufacturers, traders, Govt. and Non-Govt. organizations, self help groups involved in handloom weaving, training institutions,
C H
textile colleges, students, yarn dealers, dyers etc., Y 9.3
Exposure visits to various clusters H
Exposure visits to successful clusters will be organized among the dynamic weavers, master weavers, and other stake holders to study the Good Manufacturing
A
Practices (GMP) as a trust building activity. N 9.4
Training Programmes D
Training Programmes on personality development, skill development, designing, management, products diversifications will be identified and organized in subclusters. 9.5
L O
Establishment of Raw material Bank O
A raw material bank will be established at Trichy where all kinds of inputs for handloom weaving made available for effective and timely distribution to weavers.
9.6
Product & Design Developments
M
C
New innovative concepts, New Products will be developed using new fibres in line
L
with the existing cluster products with the help of students from textile institutions. 9.7
Formation of Consortiums
Consortiums of co-operative societies, master weavers, dyers
U
will be formed to
S
reduce the cost of inputs and improve the collective efficiency. T 9.8
Establishment of market linkages E
The Trichy Handloom Cluster will be linked with proper marketing channels of Textile Retail showrooms all over India.
R
T R 9.9
Participation in Exhibitions and Buyer - Seller Meets
The consortiums will be assisted in marketing their produce in the national and
I C
international exhibitions and Buyer - Seller Meets. H 9.10
Formation of a Cluster Development Co-ordination Committee Y
A District level Cluster Development Co-ordination Committee (CDCC) amongst the stakeholders will be established for monthly review of the functioning of all the cluster related activities.
H
9.11 Establishment of Common Facility Centre
A
A Common Facility Centre consisting of a modern dyeing unit, a testing laboratory,
N
a training hall will be established to serve the handloom industry needs. D 9.12 Establishment of Web-portal
A Web-portal containing customized products development information and on-line sales through internet will be established.
L O
9.13 Exposing cluster to Exporters & Buyers
O
The Export quality voile fabrics produced in Manamedu will be exposed to foreign
M
buyers for direct export 9.14 Establishment of Brand
C
A Brand name for Trichy Handloom Cluster products will be established and popularized through Fashion Shows in important cities.
L U S T E R
