CLUSTER DEVELOPMENT PROGRAMME_ INDIA by malj

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     Diagnostic Study        N

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Trichy Handloom Cluster
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Diagnostic Study Report of
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Trichy Handloom Cluster      E

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                               Contents
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       Executive Summary

 1     Textile Industry Scenario
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 2     Historical Evolution of the Cluster
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 3     Core Cluster Actors and Institutions
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 4     Analysis of Business Organisations

 5     Inter Firm Industrial Organisations                D

 6     SWOT Analysis of the Cluster                       L

 7     Vision of the Cluster                              O
 8     Problems and Gaps
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 9     Implementation Strategy
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10     Action Plan


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                          EXECUTIVE SUMMARY
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The Handloom Industry in India offers livelihood to masses all over the
country. Despite the government schemes, the Handlooms in many parts of            C
the country are struggling to survive. Trichy is one such place where the
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handloom industry is in the declining trend for the past 5 years.

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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.   H
Globalization, changing market trends, growing production of these varieties
in powerloom, highly fluctuating yarn market, lethargy of the weavers              A
towards the activity, mismanagement of the cooperative institutions and
misuse of the government rebate scheme are some of the reasons attributed          N
to the state of affairs of the handloom industry. Due to these reasons about
50 % of the weavers left the area in search of livelihood to other districts and   D
even to the nearby state Kerala.
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The chapter 1 deals with the global textile industry scenario to the present
handloom industry in Trichy district and the market share of the major
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cluster product, saree.
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       INCOMPLETE. FULL FORM WILL BE SENT IN DUE COURSE
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                 1.0 TEXTILE INDUSTRY SCENARIO
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1.1   Global Textile Industry Scenario
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Global Textile Market today is worth more than $500 billion and it is still growing
every year. Textile and apparel trade represents nearly 6% of total world exports.       H
Textile Trade has exploded eighty-fold during the past forty years, from under $6
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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
textile trade has opened up highly demanding and evolving requirements for               H
outsourcing of textiles. During the last quarter of the previous century, the share of
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developing countries in world textile exports improved from 15 to 50 per cent.

1.2   Textile Agreements Pre & Post MFA                                                  N

The Trade in Textiles from 1974 – 1994 was controlled under MFA (Multi-Fiber             D
Agreement) through which a particular country is restricted to export its textile
products beyond a certain level to European and US markets. It is clear, efforts to      L
liberalise trade and textiles has been tough. The key players from the developed
countries took protective measures and made heavy investments in textile, and the        O
result, the developed countries became the most capital-intensive nations within
the textile manufacturing segment. At the same time, developing countries were
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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
Textiles and Clothing (ATC) on 1 January 1995. The WTO renewed the MFA with an
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Agreement on Textiles and Clothing (ATC), which agreed that all quotas on textiles
and clothing would disappear between member countries on January 1, 2005. The            L
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,          U
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       S
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.      T

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1.3   Competitiveness and the Future
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Manufacturers in developed countries are more likely to adapt by relocating
operations to production centers in low wage countries. Those who choose nearby            C
locations will also benefit from market proximity and speed of response. Textile
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manufacturers supplying regional and domestic apparel producers have survived by
investing in technology. It allows them to achieve some of the highest productivity
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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    H
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           A
will be able to deliver large volumes from integrated structures through partnership
and other ventures. The quantum leap in exports of textiles from developing                N
countries occurred despite high tariffs and quantitative restrictions imposed
particularly by economically developed countries. It is important to highlight the         D
role of the multifunctional textiles, intelligent textiles, eco-textiles, e-textiles and
customized textiles in the future of the textile-apparel sector to cope up with the        L
changing face of textile industry.
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1.4   Indian Textile Industry Scenario
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The Indian Textile Industry has an overwhelming presence in the economic life of
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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,
and the export earnings of the country. Currently, it contributes about 14 percent         C
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
Textile sector is the second largest provider of employment after agriculture. Thus,
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the growth and all round development of this industry has a direct bearing on the
improvement of the economy of the nation. The Indian textile industry is extremely         S
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

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1.5   Indian Handloom Industry Scenario
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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   C
present in Indian handlooms makes it a potential sector for the upper segments of
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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
replicated by the Powerlooms. In spite of the Government intervention through           H
financial assistance and implementation of various development and welfare
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schemes, the number of handlooms is continuously reducing all over the country.
The reasons are manifold. New generation are not readily joining the weaving            N
activity. Low wages, continuous increase in yarn prices, obsolete technologies,
unorganized production system, low productivity, inadequate working capital,            D
conventional product range, weak marketing link, overall stagnation of production
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and sales and, above all, competition from powerloom are the factors forcing the
handloom sector difficult to survive.                                                   O
1.6   Tamil Nadu Handloom Industry Scenario
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Handloom industry in Tamilnadu plays an important role and provides employment
for more than 4.29 lakh weaver households and about 11.64 lakh weavers.                 M
According to the Director of Handlooms & Textiles, about 2.11 lakh handlooms are
functioning in 1247 handloom weavers’ co-operative societies and the remaining
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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              L
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
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and sold to the extent of Rs.696.58 crore during the year 2004-05. There is an
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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
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.              E

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1.7   Trichy Handloom Industry Scenario
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Trichy Handloom cluster consists of many sub-clusters with in a radius of 50 km.
They are Manamedu, Musiri, Paithamparai, Thathiengarpet, Kottathur, Thuraiyur,         C
Poovalur, Mettupalayam, Samayapuram etc., 5 years before, there were more than
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10000 looms were operating in the cluster.      Due to the price competition from
powerloom sector, the trend is continuously declining. To day 1/4th of the business
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only is happening. 3/4th 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        H
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      A
are Cotton sarees, cotton voile fabrics cotton dhotis and uppers. The total turnover
of the cluster estimated to be around Rs. 10 crores, in which 70 % are woraiyur        N
cotton sarees, 20 % are voile fabrics and 10 % are of dhotis and uppers.
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The total market size of the cotton saree in India, according to the Textiles
Committee’s consumer house hold survey, is 330 million pieces. The Cotton sarees       L
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.
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The total handloom cotton sarees produced in Tamil Nadu, according to the
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Statistical Hand Book of the Department of Economics and Statistics for year 2005,
is 59, 21,167. The Trichy cluster contributes 5 % of the handloom cotton saree
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production in Tamil Nadu.


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             2.0 HISTORICAL EVOLUTION OF CLUSTER
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2.1    History of Trichy Handloom Cluster
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Woraiyur, a part of present day Tiruchirappalli, was the capital city of Cholas since
300 B.C. Later, Woraiyur came under        the control of Mahendra Varma Pallava I,              H
who ascended the throne in AD 590. Till AD 880, this region was under the
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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    area    H
was occupied by the Hoysulas. Afterwards, it came under the rule of later Pandyas
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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.                The Nayaks, the
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Governors    of    Vijayanagar   Empire,   ruled this area till    AD     1736.         It was
Viswanatha Nayaka who built the present day Teppakulam and the Fort.                             D
The Muslims rules this region again with the aid of either        the    French     or    the
English armies.     For some years, Tiruchirappalli was under the rule     Chanda Sahib
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and Mohamed Ali. Finally the English brought Tiruchirappalli and other areas under
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their control.    The district was then under the hegemony of British for about 150
years till the independence of India. As the sarees woven in and around the ancient              O
Cholas capital Woraiyur, since then it is called Woraiyur sarees.
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2.2    Present day Trichy Handloom Cluster
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To day it is estimated that about 2500 handlooms operate in both Co-operative and
Private sector. As per the statistics available with the Assistant director of                   L
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                         U
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               S
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
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registered and one is dormant. Though the number of profit making societies is 19
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in number, the accumulated loss of these societies runs into more than 5 crores.
M/s. Thathiengarpet Weavers Co-operative Society, once popularly known for its            I
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          C
voile fabrics produced on handlooms reduced from 5 lakh metres to about 1 lakh
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metres. The competition from powerlooms forced few master weavers to switch
over to powerlooms.
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2.3   Social Profile of Trichy

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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.       A
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        N
the outskirts of Trichy. Bharat Heavy Electricals Ltd, a successfully run popular
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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      O
Ranganathar Temple, Samayapuram Mariamman Temple                  and Tiruvanikkaval
Temple.
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2.4       Woraiyur Cotton Saree
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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   C
being used to make these varieties. The cotton yarn is bought from Coimbatore
area mills through NHDC.         The approved dyer for Co-operative Societies operate   H
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
and other varieties is as below:-                                                       H

  S.No.      Variety      Warp     Weft       EPI / PPI   Width      Length             A
      1      Saree        100s     100s       80/76-80    47-50”     6-9 Yds
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      2      Saree        80s      100s       80/76-80    47-50”     6-9 Yds
      3      Saree        80s      80s        80/76-80    47-50”     6-9 Yds            D
      4      Saree        100s     2/120s M   80/72-76    47-50”     6-9 Yds
      5      Saree        60s      60s        72/64-68    47-50”     6-9 Yds            L
      6      Voile fab.   80s      80s        80/68-76    46-48”     P Length
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      7      Dhoti        100s     100s       88/76-80    50”        4 yds
      8      Dhoti        80s      80s        88/76-80    50”        4 yds              O
      9      Uppers       80s      80s        80/76-80    36”        2 yds
      10     Uppers       100s     100s       80/76-80    36”        2 yds              M


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       3.0 CORE CLUSTER ACTORS AND INSTITUTIONS
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3.1   Core Cluster actors
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The core cluster actors are weavers of both cooperative and private, Handloom
Weavers Co-operative Societies, Master weavers, Merchant Manufacturer / Traders,          H
Co-optex, Textile Showrooms, Dyers, NHDC, Yarn Dealers, Cooperative Banks,
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Integrated Cooperative Development Organisation.



3.2    Office of the Asst.Director of Handlooms & Textiles                                H

The Weavers Co-operative societies come under the Administrative Control of The           A
Asst. Director, Handlooms & Textiles, Govt. of Tamilnadu. Since no elected board is
functioning in any of the society, the officials from Asst.Director of Handlooms &        N
Textiles function as Special Officers and control the societies in day-to-day
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activities. Welfare and developmental schemes of Central & State Govt. are also
implemented and monitored by this office. NID has been entrusted to develop new           L
designs for Woraiyur sarees.
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3.3   Financial Institutions
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3.3.1 The Trichy Dist. Co-operative Bank
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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
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the year 2005-06 has been Rs.417 lakhs. Out of which Rs.383 lakhs availed. Since
about 50% of the societies are working under loss, there is no credit facility
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extended to these societies.
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3.3.2 The Commercial Banks
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The commercial Banks like Lakshmi Vilas Bank offers loans to women handlooms
SHGs in Manamedu sub cluster. Apart from this, there is no evidence of banks
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offering loans to the handloom industry.
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3.3.3 Integrated Co-operative Development Project
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The Integrated Co-operative Development Project is a programme under National
Co-operative Development Corporation (NCDC).            They identify co-operative       C
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       H
given working capital under this project.
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3.4   Weavers’ Service Centre

The Weavers’ Service Centres (WSC) impart training to weavers to upgrade their
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skill and increase productivity. They play a vital role in conducting research and
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development evolving new designs and reviving traditional designs. The WSCs are
functioning under the Office of the Development Commissioner for Handlooms, New          N
Delhi. The WSCs primarily render extension services, which involve transfer of
design inputs, skills and technology evolved to the weavers at their cottages.           D

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3.5   Bharathidasan Institute of Management (BIM)

The BIM is a reputed Management Institution in Trichy, offers MBA Course                 O
to students. The resources of the Institute may be used for training needs of the
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handloom industry personnel in management aspects.

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3.6   District Rural Development Agency (DRDA)

The DRDA is a State Government Body working and implementing schemes for the
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rural development.    There is no specific scheme for handloom weavers under
DRDA.    However, they work with SHGs (Self Help Groups) of women and men                L
directly and through NGOs.
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3.7   Self Help Groups ( SHGs)
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There are about 6 SHGs identified in the cluster engaged in Handloom weaving.
They have obtained loan from the local private bank, produced own handloom               T
products and participated in the Exhibition for marketing their products.
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3.8    Trichy Zilla Handloom Textile Producers Association
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Associations play an important role in the development and sustainability of the
industrial clusters. Trichy handloom cluster also has many associations in the          C
business. But none of the associations are actively involved in the development of
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the business now. Woraiyur handloom merchant manufacturers are having an
association in the name of Trichy Zilla Handloom Textile Producers Association. It is
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a registered association with a membership base of about 50 members. It was
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            H
market for handloom sarees. The association runs a marriage hall. They organize
meetings in every six months to discuss the issues of importance. They also             A
distribute free school books and uniform cloth to the poor and needy students. Now
a days they discuss the handloom business very rarely. Their last meeting took          N
place two years before when the cenvat tax was imposed on cotton yarn.
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3.9     The Manamedu Warping Association
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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.
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The Manamedu warpers have an association. It is not a registered association. The
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warpers in Manamedu area assemble on the new moon day, discuss any issue
related to their warping and do the chit fund activity.
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3.10    The Manamedu Sizing Association

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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             L
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.                     U

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            4.0 ANALYSIS OF BUSINESS OPERATIONS
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4.1   Cotton Yarn Supplier
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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                 H
local yarn dealers. The raw material is supplied from Coimbatore and Rajapalayam.
The cotton yarn counts of 80s, 60s, 100s and 120s are being used for weaving               Y
sarees, dhotis, and export voile fabrics.         There is no yarn dealers presently
operating in Trichy.        A yarn dealer M/s. K.R.Velayudha Mudaliar Company,
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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
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the market for the sarees reducing continuously.

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4.2   Dyeing
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The dyeing activity is carried out only by few small dyers in Trichy. There is no
approved dyer in Trichy. The cotton yarn for societies being dyed at Jeyankondam
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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.        O
Mostly, Napthol and Vat dyes are used for dyeing.           Direct dyes with some after
treatment are also followed to some extent.            The dyeing charges per bundle of    O
2.25 kg ranges from Rs. 120/- to Rs. 250/-.
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4.3   Warping

Warping is a process to convert the cotton yarn in hank form / cone form to ball /         C
sheet ball form suitable for sizing and weaving on handlooms. There were about
400 warpers working all over Trichy Dist. five years back. At present, their number        L
reduced to about 100.        The warping charges are made on No. of knots basis.
Rs.2.40 per knot is charged as warping charges. 50% of this i.e Rs.1.20 goes for           U
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    S
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.

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4.4   Street Warp Sizing
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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     C
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              H
gets Rs.5/- to Rs.20/- depending upon the quantity for 1 to 4 warps. The length of
the warp for sizing is around 35 yards. The accessories used for sizing process are          Y
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
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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
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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.                     N
                         Sizing Ingredients & wages per warp
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                       S No   Ingredients            Expenses Rs
                         1    Charges for 5 warps           345.00                           L
                         2    Rice extract                    5.00
                         3    Coconut oil 25 ml              12.50                           O
                         4    Raw rice flour                 20.00
                         5    Wages @ 10 for 5              250.00                           O

4.5   Weaving
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Weaving is a process of interlacement of two series of threads warp and weft to
form fabric. Cotton yarn is used for weaving the sarees, export pieces and dhotis.           C
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
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weavers are of above 50 years age the productivity per weaver and earning also
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slow down.

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4.6   Handloom

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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
                                                                                             E

                                                                                             R
                                                                                       T

                                                                                       R
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      I
and around the Trichy Handloom Cluster.
                                                                                       C
4.7   Weavers
                                                                                       H
Weavers have own looms and operate from their households.           There are two
categories of weavers viz., weavers under cooperative fold and weavers under           Y
master weavers or private weavers.

4.7.1 Weavers under Cooperative fold                                                   H

The cooperative society weavers receive the sized warp from cooperative societies,     A
weave the sarees or dhotis or export pieces and return back the said products to
societies for marketing to Merchant Manufacturer, Co-optex and direct sales to         N
consumers. They receive wages for this activity. The continuous employment is not
ensured to the weavers of the cooperative societies. The cooperative weaver gets
                                                                                       D
20 % more wages compared to the private weavers. The same cooperative weaver
                                                                                       L
when weaves for a master weaver accepts the 20 % less wages.

4.7.2 Private Weavers                                                                  O

The private weavers mostly receive the dyed yarn from master weavers and get it        O
warped and sized outside; weave the sarees, dhotis and export pieces and return
back the woven products to the master weavers / merchant manufacturer.          The    M
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
                                                                                       C
cooperative weavers.

4.8   Co-operative Societies
                                                                                       L

There are about 27 Handloom Cooperative societies operating in Trichy District with    U
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
                                                                                       S
spinning mills through NHDC. The cotton yarn is dyed according to the requirement
                                                                                       T
of colours with the approved dyers.    Then it is issued to the warping and sizing
people before issued to the weaver members.
                                                                                       E

                                                                                       R
                                                                                         T

                                                                                         R
4.9   Master Weavers
                                                                                         I
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        C
and supply to warpers and sizers then to weavers and get the woven sarees,
dhotis, export pieces and gives back to merchant manufacturers/ exporters.               H

4.10 Merchant Manufacturers / Traders                                                    Y

There are about 25 merchant manufacturers operating in the Trichy region.        Their
yarn requirements are met through the yarn dealer of Jayankondam situated about          H
95 km from Trichy.         They dye the yarn according to the requirements of the
market.    They supply the dyed yarn to warpers and sizers before issued to the
                                                                                         A
individual weavers and small master weavers of different areas in Trichy.         The
                                                                                         N
weavers weave the sarees and returns back to them. There is a wage difference of
about Rs.100/- between private and cooperative societies.             They supply the
                                                                                         D
finished   sarees   to   throughout   Tamilnadu,   Andhra   Pradesh   and   Karnataka.
Presently, their market size reduced about 75%         in the past 10 years due to       L
competition from powerloom sector.          There is an association of Trichy Zilla
Handloom Textile manufacturers with a membership of about 50. Presently about            O
10 merchant manufacturers are actively involved in Handloom saree business.
                                                                                         O
4.11 Co-optex
                                                                                         M
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.         C
The Co-optex procures handloom products from co-operative societies throughout
Tamilnadu.    They place production plan in advance to the societies and monitor         L
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         U
from co-operative spinning mills are being sold to co-operative societies through
their yarn sales depot.     As the co-operative spinning mills do not produce finer      S
count yarn, and the Trichy consumes only the finer counts of yarn, Co-optex does
not have yarn sales depot     in Trichy.                                                 T

                                                                                         E

                                                                                         R
                                                                                             T

                                                                                             R
4.12 Textile Showrooms
                                                                                             I
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   C
showrooms. The master weavers take orders from these showrooms and get it
woven by weavers and supply back to the showrooms.                                           H

                                                                                             Y
4.13 Role of Women and family members

The women in the cluster play an important role in weaving the sarees, voiles,               H
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           A
done by household ladies.      The winding of bobbins for warping process, is also
                                                                                             N
carried out by the women folk. For the sizing process, the size paste is collected
from households by old ladies.
                                                                                             D

                                                                                             L

                                                                                             O

        Warping Process in Progress                    Sizing Process in Progress            O

                                                                                             M


                                                                                             C

                                                                                             L

                                                                                             U

                                                                                             S

                                                                                             T

                                                                                             E

                                                                                             R
                                                                 T

                                                                 R
       5.0 INTER FIRM INDUSTRIAL ORGANISATION
                                                                 I
5.1   Handloom Saree Production Process Map
                                                                 C
                            Raw Material
                            Cotton Yarn                          H

                                                                 Y

                              Dyeing
                                                                 H
        Warp Preparation                      Weft Preparation
                                                                 A

                                                                 N
            Winding
                                                  Winding        D

                                                                 L
            Warping
                                                                 O
                                                Pirn winding
                                                                 O
             Sizing

                                                                 M

          Warp Joining
                                                                 C

                                                                 L

          Warp Gaiting                                           U

                              Weaving                            S

                                                                 T

                                                                 E

                                                                 R
                                                                                 T

                                                                                 R
5.2   Cluster Map
                                                                                 I

                                                                                 C

                                BIM                                              H
        NHDC
                                                Coop Tex            Textile
                                                                    Show         Y
                                                                    Rooms

                                                                                 H
                                                                     Design
                                                                    Institutes
         AD
                                                 Weaver                          A
        office              Society
        Trichy                                   Coop
                                                                                 N
                                                                    Merchant
                                                                      Mfr
                                                                                 D
                                                 Weaver
                      Warping                    Private
                                                                                 L

        WSC                           Sizing                                     O

                                                                    Handloom     O
                                                 Master               Assn
                                                 Weaver
            Warping                                                              M
             Assn               Sizing
                                 Assn
                                                                                 C

                                                                                 L

                                                                                 U
Before Intervention                            After Intervention
                                                                                 S

                                                                                 T

                                                                                 E

                                                                                 R
                                                                        T

                                                                        R

                                                                        I

                                                                        C

                                                                        H
                   6.0 SWOT ANALYSIS THE CLUSTER
                                                                        Y
6.1     Strength
                                                                        H
6.1.1       Finance
           Availability of Credit facilities from Co-operative Banks   A
           Availability of banks for private sector
                                                                        N
6.1.2       Production
           Traditional Weaving skill
                                                                        D
           Availability of Raw material
                                                                        L

6.1.3       Marketing                                                   O
           Woraiyur Cotton sarees have very good market
                                                                        O
           Private master weavers have good market linkages

                                                                        M
6.2     Weakness

6.2.1       Finance                                                     C
           Working capital not available to loss making societies
                                                                        L
           No proper working capital management
           Lack of professional management                             U

                                                                        S
6.2.2       Production
           Feeling of disgust on weaving                               T
           Wages remain stagnant in spite of inflation
                                                                        E

                                                                        R
                                                                  T

                                                                  R
           Inconsistent supply of raw material to weavers
           Weavers are aged. Young generation not encouraged     I
           Lack of Innovation in designs
                                                                  C
           Reducing Production every year
           Absence of yarn dealer and approved dyer in Trichy    H

                                                                  Y
6.2.3       Marketing
           Societies have Weak Marketing linkages
           Selling only on rebate ( cooperative )                H
           Lack of own showrooms
                                                                  A
           No dynamic marketing activity

                                                                  N
6.3         Opportunity
                                                                  D
6.3.1       Finance
           To avail the schemes of new generation banks          L
6.3.2       Production
                                                                  O
           To go for new value added products
           To go for new innovations                             O
6.3.3       Marketing
           To go for direct export
                                                                  M
           To explore newer markets

                                                                  C
6.4         Threats
                                                                  L
6.4.1       Finance
           No support for Handloom Industry from FIs             U

                                                                  S
6.4.2       Production
           Stiff competition from power looms                    T
           Ineffective enforcement of handloom reservation act
                                                                  E

                                                                  R
                                                               T

                                                               R
6.4.3       Marketing
           Growing misuse of rebate scheme                    I
           Emerging new marketing with Big Retail showrooms
                                                               C

                                                               H

                                                               Y
                        7.0 VISION OF THE CLUSTER

                                                               H

                                                               A

                                                               N

                                                               D
    THE HANDLOOM WEAVERS IN TRICHY CLUSTER WILL
                                                               L
                BECOME DYNAMIC AND SELF SUFFICIENT
                                                               O
              TO PRODUCE MARKET - DEMAND VARIETIES
                                                               O
               BY CONTINUOSLY FOCUSSING ON QUALITY
                                                               M
                   AND INNOVATIVE DESIGNS FOR THE
                                                               C
                        NICHE HIGHER END SEGMENT
                                                               L
                            OF THE SAREE MARKET
                                                               U
                                     BY 2010.
                                                               S

                                                               T

                                                               E

                                                               R
                                                                                      T

                                                                                      R
                        8.0 PROBLEMS AND GAPS
                                                                                      I
8.1   The mind set of the weaving community is highly disturbed. Their very
      survival is at stake.                                                           C

                                                                                      H
8.2   Due to tough competition from powerlooms, the handloom sarees and dhotis
      market has reduced to 1/4th in the last 5 years. Similarly, the no. of looms,
                                                                                      Y
      weavers, master weavers, merchant manufacturers, traders has also been
      reduced.

                                                                                      H
8.3   The traditional method of manufacturing is only followed despite ever
      changing market.                                                                A

8.4   The aged weavers are not ready to change the varieties to earn more wages.      N

8.5   No proper linkages with designers or textile institutions.                      D

8.6   There is no innovation in the handloom sarees and so the market is shrinking    L
      every year.
                                                                                      O
8.7   Lack of professional management in the working of handloom co-operative
      societies.                                                                      O

8.8   Absence of designer for the societies with technical skills                     M

8.9   Lack of approved dyers in Trichy. Waste of time due to transportation to
      approved dyer situated 95 km away.                                              C

8.10 The system of allocation of yarn by DH office through AD office and NHDC         L
      makes inordinate delay which affects their operation.
                                                                                      U
8.11 More than 50% of the cotton yarn meant for distribution to the handloom
      society members are diverted to the local private weavers.                      S

8.12 Improper linkages with raw material supply and marketing results in low          T
      quality & defective goods and unmarketable products.
                                                                                      E

                                                                                      R
                                                                                          T

                                                                                          R
                  9.0 IMPLEMENTATION STRATEGY
                                                                                          I
9.1   Awareness Programme
                                                                                          C
More awareness programmes will be organized amongst the sub-cluster weavers,
master weavers, and society managers, self help groups separately to bring                H
confidence and commitment for the successful implementation of the programme,
within a period of six months.                                                            Y

9.2   Project Launch Programme
                                                                                          H
The project Launch Programme will be organized inviting all the stake holders viz.,
weavers, master weavers, merchant manufacturers, traders, Govt. and Non-Govt.             A
organizations, self help groups involved in handloom weaving, training institutions,
textile colleges, students, yarn dealers, dyers etc.,                                     N

                                                                                          D
9.3   Exposure visits to various clusters
                                                                                          L
Exposure visits to successful clusters will be organized among the dynamic
weavers, master weavers, and other stake holders to study the Good Manufacturing          O
Practices (GMP) as a trust building activity.
                                                                                          O
9.4   Training Programmes
                                                                                          M
Training Programmes     on personality development, skill development, designing,
management, products diversifications will be identified and organized in sub-
clusters.
                                                                                          C

9.5   Establishment of Raw material Bank                                                  L

A raw material bank will be established at Trichy where all kinds of inputs for           U
handloom weaving made available for effective and timely distribution to weavers.
                                                                                          S
9.6   Product & Design Developments
                                                                                          T
New innovative concepts, New Products will be developed using new fibres in line
with the existing cluster products with the help of students from textile institutions.   E

                                                                                          R
                                                                                       T

                                                                                       R
9.7    Formation of Consortiums
                                                                                       I
Consortiums of co-operative societies, master weavers, dyers       will be formed to
reduce the cost of inputs and improve the collective efficiency.                       C

9.8    Establishment of market linkages                                                H

The Trichy Handloom Cluster will be linked with proper marketing channels of           Y
Textile Retail showrooms all over India.

9.9    Participation in Exhibitions and Buyer - Seller Meets                           H
The consortiums will be assisted in marketing their produce in the national and
                                                                                       A
international exhibitions and Buyer - Seller Meets.

                                                                                       N
9.10 Formation of a Cluster Development Co-ordination Committee

A District level Cluster Development Co-ordination Committee (CDCC) amongst the        D
stakeholders will be established for monthly review of the functioning of all the
                                                                                       L
cluster related activities.

9.11 Establishment of Common Facility Centre                                           O

A Common Facility Centre consisting of a modern dyeing unit, a testing laboratory,     O
a training hall will be established to serve the handloom industry needs.
                                                                                       M
9.12 Establishment of Web-portal

A Web-portal containing customized products development information and on-line        C
sales through internet will be established.
                                                                                       L
9.13 Exposing cluster to Exporters & Buyers
                                                                                       U
The Export quality voile fabrics produced in Manamedu will be exposed to foreign
buyers for direct export
                                                                                       S
9.14 Establishment of Brand
                                                                                       T
A Brand name for Trichy Handloom Cluster products will be established and
popularized through Fashion Shows in important cities.
                                                                                       E

                                                                                       R

								
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