Recap

Our product Silk Yarn & Finished Fabrics

Area of operation Bilaspur (H.P)
Conceptualization of business High Turnover
Intervention: Collective with Cocoon Rearers and Weavers as
members
There is 76.39% increase in the income after intervention
(per acre)
Members profile- The cooperative would start functioning
with 200 Silk farmers & 20 Weavers.
The state government & Regional Silk Resarch station
provide a lot of support to sericulture which could be used as
an advantage by the Bilaspur Silk Cooperative.
ACTIVITY MIX
CORE ACTIVITIES-
Cocoon procurement
from farmers and
storage
Reeling of Cocoons
Yarn production
Input supply to the
local weavers
Sale of Yarn to
factories

PERIPHERAL ACTIVITIES-
Supply of good quality
silkworm eggs to the farmer
Help in mulberry cultivation
Training support to the
silkworm rearers, reelers &
weavers
Exploring & offering new
technology options for efficient
& better quality production of
Silk yarn.
Quality Assessment &Control
COCOON
Procurement of high quality cocoon- only Grade A & Grade B. Thus fetching
higher prices.
In case of low quality- Cooperative would assist the farmers by giving
technical support.

YARN- The process of reeling needs to be properly monitored.
Size development and evenness- The average cocoon number per thread must
be adjusted by checking to produce silk thread in the same size
Defects- Defects occur due to improper reeling conditions, Therefore reeling
conditions need to be perfect for high quality yarn production.
Cohesion- Good cohesion raw silk is needed for the warp of silk fabrics.
Factors improving the cohesion are temperature, amount of reeling tension,
and good drying of raw silk
Color - The water consistency and temperature of groping end part and
reeling part affect the color of raw silk.
Quality Assessment & Control
SILK FABRIC-
Thrive to attain the Silk Mark certification by Silk Marks
Organization of India by quality checks at all times. Silk Mark is an
assurance label which protects the interests of consumers who are
being cheated by traders by selling spurious products in the name of
silk.
Verification against the yarn supplied to the local weaver
Good quality Fabrics to be marketed & sold


Compliance Ensuring Mechanisms
1. Set Performance indicators- For procurement (grading), Reeled Yarn
& weaved fabrics
2. Implementation of the monitoring Process
3. Individual Job descriptions and accountability
4. Members would be involved in decision making process
5. Financial statements open at all times for checking & review by the
members
6. Returns to members on the basis of patronage
7. 3rd party audit for financial activities


Governance structure
BOARD OF DIRECTORS
MANAGING DIRECTOR
FINANCE
(MANAGER)
OPERATIONS &
PROCUREMENT
(MANAGER)
MARKETING
(MANAGER)
SUPERVISORS &
FIELD STAFF
Membership Criteria
Member Cocoon producers -
A Cocoon Producer should have the capacity to produce 30
kg/month of cocoons.
Preferably a women member of the Household

Member Weavers-
Minimum age for a member should be 18 years & should
know the Fundamentals of weaving.

Revolving fund of Rs. 1000 paid as joining fee by each
member


Constitution of the Board
1. Size
The board constitutes of 5 members including the Managing Director
2. Duration
Tenure of the Board: 2 years
3. Chairman
Shall be elected by the Board of Directors
Tenure of 2 years
No. Of Max. Terms 3
Should be voting member of the cooperative for at least 3 years
immediately preceding the election.
4. Accountability
The Board & the chairman are accountable to the members and will
address the members at quarterly meetings and GBMs
The members of the Board shall elect from among themselves a
Chairman and a Treasurer.
Eligibility Criteria for
Voting
One member-one vote.
No due payment to the
society.
No proxy vote.

Eligibility Criteria for
Contesting
At least a member for two
years.
He should not have been a
defaulter and presently
should not have any dues.
Cannot be a paid employee of
any other cooperative.

Regular meetings of the Board of Directors should be held at least
once in 3 months.
Special meeting can be called upon the call of the President or the
majority of members of the board anytime.
Separation of Powers Checks And Balances
Board of Directors- Involved in strategic planning, direction
setting and policy formation of the Bilaspur Silk Cooperative.

Managing Director would look after the day to day working
of the Bilaspur Silk Cooperative & remains answerable to the
Board of directors who in turn would be answerable to the
members of the Bilaspur Silk Cooperative.
All the technical & management decision would be looked by
the management team comprising the Finance, marketing &
procurement manager.
Managers would submit financial report every month to the
Managing Director who would then submit these reports to the
Board of Directors after Careful scrutiny.

LIABILITY OF MEMBERS - RISK MITIGATION
Maintain timely supply and
grade of cocoons by rearers





Quality standard by weavers
to meet market demand
More yarn to be produced
when cocoon production is
higher.
Yarn stored to iron out the
fluctuations in supply.
Provide extension services

Provide training and arrange
workshops to skill local
weavers to meet quality
assurance

Critical Decisions & Insular Mechanism
Voting rights : one vote per member
Equal representation of Farmers and Weavers
Proportional Patronage Refund- tying capital provision to
delivery rights.
Assured demand of yarn to weavers
Assured market to farmers and weavers.
Minimum annual transaction required in order to avail the
benefits of membership.



Capital Structure
Initial Capital Requirement
Reeling Unit- 27 lakhs
Degumming- 5 Lakhs
Working Capital- 9 Lakhs
(2 in number, capacity- 10
weavers each)
Dyeing & finishing- 4.5 lakhs
Workshed - 3 lakhs
Total Requirement- 48.5
lakhs
INVESTMENT CAPITAL
FINANCING
1.Project Goldmine provides
machinery & reeling unit on lease
hold basis and also provides up to Rs
20 lakhs as loan.
2. NABARD loan- 30 lakhs
3. Venture Capital 20 lakhs


Surplus Sharing- On the basis of Patronage.
80% to be distributed to members in proportion to their contribution.
20% as retained earnings

Deficit sharing-
1. Utilization of Reserves
2. Financing by members (as per need)

Self reliance
Autonomy in governing the organization.
Increased bargaining power through common sales of silk Fabrics and
common purchase of inputs.
Dependence
Member dependence for procurement
Locus of control
Member control in decisions making through democratic governance
Management control over technical issue related to Reeling plant,
Weaving machinery ,marketing and sales


Performance Indicators
Rearer Local Weavers
Membership Level Production Capacity
Quality of cocoon
Quality of Finished
Product
Usage of Yarn
Time taken to produce a
product
Collective Level

New members added
Capacity utilisation of
reeling machines
Total Cocoons Transacted
New weavers added
Timely Delivery of orders
Total turnover of Products
After sale service

Collective as a Social
Institution
Number of Transactions
Patronage Given
How many members
attend Meetings
Regularity of Meetings
Patronage Given