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Table of Contents

I Executive Summary 1 - 4
II Industry Scenario 5 -11
III Historical Evolution of The Cluster 12 - 14
IV Sketch Of MSMEs & Other Actors 15 - 23
V Analysis of Business Operations 24 - 30
VI Inter-Firm Industrial Organisation 31 - 37
VII SWOT Analysis 38
VIII Vision 39 - 41
Annexures
Annexure 1 Cluster Map (Pre-Intervention)
Annexure 2 Cluster Map (Post -Intervention)

Annexure 3 Value Chain Analyses (Pre-Intervention)

Annexure 4 Value Chain Analyses (Post-Intervention)

Annexure 5 Case Study

I. Executive Summary
Bhagalpur is a divisional town of historical importance situated on the southern bank of the
Ganga river. The Bhagalpur. Weavers history traces back to over 100 years. It was a family
tradition among the lower income group of people to take up the weaving job.
There are about 30,000 (Approx) handloom weavers found in Bhagalpur, out of which 95% are
jobworkers with 25,000 Handlooms. The product mix being produced in Bhagalpur is as
follows:
1 Sarees
2 Dress Materials (Salwar Suits, Dupatta,Kurta- Pyjama)
3 Home Furnishings (Cushion Covers,Bed Sheets,Curtains,Throws,Table Covers,Napkins,
Runners).Out of these majority of the products made are of Home furnishings (50%)&
Dress material (35%)and rest 15% are sarees.
The Raw material used in this cluster are tussar silk, Matka silk, Eri.Mulberry,Staple,Viscose &
Chinese silk.. The price fluctuation of most of the raw materials is on higher side.
The annual production of Handloom tassar silk is 200 MT, 50% of the silk Tassar fabric is being
exported by the exporters located in Bhagalpur, Kolkata, New Delhi and Mumbai. The balance
50% of the fabric is converted into Sarees and other dress materials.
The total value of the trade from Bhagalpur cluster is around 100 crores annually and 50 % of
the turnover is from domestic market and the balance 50 % is from export market. The export
of 50 crores annual turnover is controlled by the exporters located in Bhagalpu, Kolkata,
Mumbai and New Delhi and the remaining 50 crores domestic turnover is controlled by the
traders.
Bhagalpur weavers are not having the access to the good printing, dyeing, designing facilities
which are required for the production of good quality product mix for export market as well as
for domestic market.
Weaving is mainly dominated by male in Bhagalpur Women are not able to do the weaving job.
Health status of the weavers is poor. Some of the famous silk weavers of Bhagalpur face
starvation and disease. Due to the lack of infrastructural facility available most of the people
are dying of malnutrition and hunger.
The support institutions in the cluster are the Weaver service centre (GOI),District Industry
Centre (DIC , GOB) ,Directorate of Handlooms (Industries Department, GOB),Central Silk
Board.Exporters at Bhagalpur, Kolkata and New Delhi,Designers at Bhagalpur,Indian Silk Export
promotion Council,Financial Institution,Lead Bank,Co-operative Banks ,NABARD. Except Weaver
service centre the support to the weavers by other institutions is very little.
The Value chain analysis of the cluster regarding the costing of Tassar Silk saree from the
stage of silk yarn then going through the process of dyeing, weaving , Finishing, dry cleaning
and packing is higly uneven.
The Strengths of the Cluster are Traditional preference for silk saris by the higher income
group,Availability of skilled Handloom weavers,High demand of value added handloom silk
sarees in metro cities like New Delhi, Kolkata, Patna,
Weaknesses: highly unorganized Cluster,Inadequate infrastructural Facilities at
Bhagalpur,Lack of upgraded and improved Technology.,Irregular work for weavers.,Low credit
from financial ,Lack of printing and dying facilities,Costlier products can only affordable by
higher income group.,Lack of strong market network for domestic as well as international
market.,Lack of latest design availability for value additional products.
The Opportunities are very good export potential for home furnishing value added made ups
in the selected overseas countries.,Brand building for Handloom silk value added products in
the domestic market as well as in the international market.Product diversification like that of
home furnishing value added made ups.&very large Indian market for branded silk products as
the present high growth of retail sales in India .
The Threats are biggest threat from the power loom sector,that from silk products from china
and Mulberry silk products from Karnataka and other southern states, weavers are day by day
taking up other profession due to inadequate weaving job and wages.
Aseeds Intervention strategy:
Technology: under technology approach there is a need for the up gradation and the use of
improved looms. There is great need for upgrading the technology for Dyeing. Instead of hand
dyeing, they should use chamber dyeing as in the case of most of the panipat.
Printing: in the area of printing proper training should be given to the master community
facilitator in screen printing, block printing, mud printing, offset printing, etc
There is also need to train the local designer teams in order to catch up fast changing fashion in
every season in the domestic market as well as international market..

Marketing: There is a need of creating awareness about the product of Bhagalpur silk at
domestic as well as at international side level. Brand building efforts will also be carried out.
There is also need for organizing buyer seller meet in our country and abroad.
capacity Building: under capacity building approach there is a great need for developing the
core skill and capabilities of the selected 5000 handloom silk weavers.
Institutional Development: In order to develop the silk industry of Bhagalpur, there is a great
need for developing and coordinating the activities of the silk traders, Exporters, Bankers,
Common bulk raw material procurement and weavers in order to develop a strong institutional
approach.
Information centre on the cluster will also be taken up in order to develop the silk industry of
Bhagalpur.
There could be separate consortium for exporters , traders and other associated organizations
who will co-ordinate each other to make the Bhagalpur cluster development a success.
By implementing above interventions with the help of DC, Handlooms, a definite growth can be
achieved in Bhagalpur cluster under Integrated Handloom Clsuter Development Programme
II. Industrial Scenario
Introduction about Silk:
Man is inquisitive of silk products. Silk as we all know is called queen of textile because of the
shine and glamour associated with it. The combination of these two (Shine and Glamour) have
made silk popular to all parts of India. Silk with his simmer and luster, no other fabric can match
the quality of this rich fabric. Since centuries mankind has loved this sparkling fibre of unparallel
grandeur. Silk has faced many scary challenges from the other fibres but it remained undoubted
Queen of Textiles since Centuries. Chemically speaking, silk is made of proteins secreted in the
fluid state by a caterpillar, popularly known as silkworm. These silkworms feed on the selected
food plants and spin cocoons as a 'protective shell' to perpetuate the life. Silkworm has four
stages in its life cycle viz., egg, caterpillar, pupa and moth. Man interferes this life cycle at the
cocoon stage to obtain the silk, a continuous filament of commercial importance, used in
weaving of the dream fabric.
History of Silk:
Silk, what we called sericulture, has a long history. Some say that silk was first originated or
discovered in China about 10,000 years ago. In china people say that Empress Si Ling Chi of
China discovered silk 5000 years ago. The history of silk is that Empress Si Ling Chi was sitting
under the Mulberry tree in her palace and she was taking her tea. A cocoon fell from the
Mulberry tree in her hot tea cup and when she watched strong white thread unraveled itself.
Types of Silk:
There are about 5 main types of silk found in India and they are as follows
1 Mulberry
2 Tasar
3 Muga
4 Eri
5 Matka
Mulberry Silk: Mulberry silk are found in the states of Karnataka, Andhra Pradesh, West
Bengal, Tamil Nadu, and Jammu & Kashmir. These four states accounts for 92% of the total
Mulberry silk production. Mulberry silk comes from Bombyx mori L silkworm, which totally feeds
on the mulberry plant.
Tasar Silk: Tasar silk is mainly found in the states of Jharkhand, Chattisgarh and orissa besides
Maharashtra, west Bengal, and Andhra Pradesh. Tassar is copperish in colour and this silk is
mainly used for furnishing and interiors. Tasar silk is less shiny than mulberry silk, but Tasar silk
has it own feel and appeal.
Oak Tasar: It is mainly found ion the state of the sub Himalayan belt of India covering the
states of Manipur, Himachal Pradesh, Uttar Pradesh, Assam, and Mehgalaya, Jammu and
Kashmir.
Eri silk : Eri silk is mostly found in the north eastern states and Assam. It is also found in the
states of Bihar, Bengal and orissa.Eri silk is mainy used for making chhadars.
Muga Silk : The Muga silk is golden yellow in colour. Muga silk is generally found in Assam so
it is called as pride of Assam. Muga silk is generally used in making products of Sarees and
Chaddars. The name of the silkworm from where we get muga silk is Antheraea assamensis
and the plants on which they feed are Som and soalu .
Matka : Matka is generally found in the states of Bengal, orissa and karnatka. This fabric is
formed mostly in natural colour and can be used for home furnishing made ups.
Silk Industry at Bhagalpur cluster:
In Bhagalpur the weavers service centre (GOI) was established in the year 1974. with a view to
developing handloom silk industry in the state of Bihar. There have been partially successful in
providing training to weavers and in the area of designing, printing and dyeing.
There are about 30,000 (Approx) handloom weavers found in Bhagalpur and 25,000
Handlooms found in Bhagalpur. The major product mix being produced in Bhagalpur are:
2 Silk Dress material.
3 Saree
4 Salwar Suits, Dupatta
5 Kurta- Pyjama
6 Cushion Covers
7 Bed Sheets
8 Shawls
9 Scarves
10 Curtains
11 Throws
12 Table Covers, Napkins, Runners
The production of Handloom tassar silk in the form of fabric is 200 MT annually, 50% of the silk
Tassar fabric is being exported by the exporters located in Bhagalpur, Kolkata, New Delhi and
Mumbai. The balance 50% of the fabric is converted into Sarees and other dress materials.
The total value of the trade from Bhagalpur cluster is around 100 crores annually and 50 % of
the turnover is from domestic market and the balance 50 % is from export market. The export
of 50 crores annual turnover is controlled by the exporters located in Bhagalpur , Kolkata,
Mumbai and New Delhi and the remaining 200 crores domestic turnover is controlled by the
traders .
The silk sarees produced in Bhagalpur were popular in the domestic market during 1970-90s.
However the saree industry gradually suffered a setback in production as well as in marketing
these sarees in the domestic market. The present share of the sarees is around 5% of the total
market of the silk sarees in the country. Presently the silk Sarees produced in the South like
Kanchipuram, in Tamil Nadu and Dharmavaram in A.P , Banaras in U.P along with the specific
brand like Nalli sarees have become very popular and captured the market in India.
In the area of home furnishing made ups, Bhagalpur produces 100 crores silk made ups as
against the total production of 3,300 crores of silk made ups from India. With the few selected
improvements suggested elsewhere in this report, Bhagalpur cluster can produce good quality
home furnishings made ups, which can be exported.
Primarily, the weavers and co-operative societies are not in a position to buy bulk raw material
of silk yarns/cocoons due to lack of sufficient funds available with them. The supply of silk yarns
and cocoons are mainly in the hands of very few business tycoons who are powerful in terms of
money and influence. They are dictating terms to the silk industry at Bhagalpur. Hence there is
an acute need to create the raw material bank in the proposed common facility center at
Bhagalpur.
In addition to the above problems, Bhagalpur weavers are not having the access to the good
printing, dyeing, designing facilities which are required for the production of good quality
product mix for export market as well as for domestic market.

The Bhagalpur cluster is the second highest in silk fabric production and exports after the
Karnataka state. Bhagalpur silk home furnishing made ups are slowly becoming popular in the
overseas markets
III. HISTORICAL EVOLUTION OF THE CLUSTER
GEOGRAPHIC LOCATION:
Bhagalpur is a divisional town of historical importance situated on the southern bank of the
Ganga river. Situated 220km east of state capital Patna and 410 km north west of Calcutta is
well connected by rail and road.
HISTORICAL BACKGROUND
Early civilizations have fostered along the fertile coasts of the river Ganges. Bhagalpur has often
been referred to as Bhagaddat-Puram in ancient Sanskrit literatures such as the Ramanaya,
Mahabharatha and Panchtantra. "Vishaili Puja" or the worship of the snake queen traces its
roots to hundreds of years and is still celebrated every year with thousands of believers and
snake charmers offering milk to the Nag(the snake King) and Nageen (The snake Queen).
Bhagalpur is a town and the administrative headquarters of Bhagalpur district Bihar state in
the eastern part of India .. References to Bhagalpur can be found in Indian epics like the
Ramayana and the Mahabharata where Bhagalpur has been described as the kingdom of Anga.
The main language of Bhagalpur is Angika.The gangetic plain of Bhagalpur is very fertile. The
main crops that are grown in Bhagalpur is Rice, Wheat,Maize, Barley and oilseeds. The
economy of Bhagalpur is dependent mainly on agriculture and silk. The area of Bhagalpur is
spread over 2570 km. Total population of Bhagalpur is 19,09,967, out of this 15,66,518 resides
in rural area and 3,43,449 resides in urban area. The total schedule caste and schedule tribe
population of Bhagalpur is 2, 30,618. In Bhagalpur there are 16 blocks. The names of the
blocks are: Pirpainti, Kahalgoan, Sanhaula, Sabour, Nathnagar, Jagdishpur, Sultanganj, Sahkund,
Bihpur, Navgachia, Gopalpur, Kharik, Narayanpur, Gauradih, Ismailpur, Rangrachowk. The main
rivers of Bhagalpur are Ganga, Badua, Chanan .
Bhagalpur is known as silk city as it is famous worldwide for its silk production. The silk industry
in this city is 200 of years old and a whole clan exist that has been producing silk for
generations. There is a Silk Institute and Agricultural college here, as well as a University, and
Engineering, Medical and homeopath colleges.
Bhagalpur is well known for its sericulture, manufacture of silk yarn and weaving them into
lovely products. This silk is of a distinct and special type. It is known as tussah or tusser silk.
Bhagalpur silk is a household name in India and the lovers of Bhagalpur Silk fabrics is found
allover the India. Silk weaving is an age-old traditional household industry of Bhagalpur.

During 1941, G. Griyarson who id District Majistrate under British Regime has taken a sample of
Bhgalpur Product to UK and popularized the brand globally
After Communal Riots in the city during 1989, the turnover has been reduced form 400 crores
to 100 crores and triggered weavers migration and change of profession.
The situation remained stand still after communal riots and affected the cluster adversely.
IV. Sketch of MSMEs
SOCIO-ECONOMIC CONDITION
There are about 30,000 Handloom weavers found in Bhagalpur and there are about 25,000
Handlooms in Bhagalpur. 85 %of the weavers are Muslims and rest 15 % belong to other
communities. 80% of the weavers reside in the rural sector and rest 20% resides in the urban
sector. The socio-economic conditions of the weavers of Bhagalpur was improving until the
outbreak of communal riots in 1989 but after the riots, the condition of weavers became
miserable and it resulted in the destruction of the famous silk industry gradually. Weavers
were uprooted from their place and livelihood and it severely affected the silk trade in the
Bhagalpur. After the Bhagalpur communal riots the growth of Bhagalpur silk industry was
affected a lot. Many weavers abandoned their looms and fled to the cities. Others took up lower
income and less high-profile jobs such as tailoring or construction activity. Due to this many
weavers switched to handlooms to power looms. The Bhagalpur. Weavers history traces back
to over 100 years. It was a family tradition among the lower income group of people to take up
the weaving job during the early days of 19th centuries.
Urban Country Composition
80 % of the weavers reside in the rural sector and rest 20 % resides in urban sector. The map of
concentration of weavers is given below:
Some of the weavers and selected co-operatives are undertaking the job work of weaving from
the master weavers / traders/ exporters. since weavers do not have the sufficient education and
knowledge of entire silk trade in India as well as about the exports , the middle man like master
weavers come into play as they are closely associated with the traders and exporters and have
the practical tactics to manage the weavers. Since weavers have to earn their daily wages for
feeding themselves and their families, they undertake the weaving jobs at very low rates as
dictated by the chain of master weavers/ traders /Exporters.
The concentration of the weavers in different parts of the Bhagalpur cluster are given blow in
the tabular form along with the type of job which they undertake.
Name of the specific Area Type of the Job being done
Ambabhagh and Hasnabhagh (Urban
area)
Home furnishing made ups
Puranini and surroundings 18 (villages) Length fabrics, Home Furnishing made
ups , Dupatta, Saree
Nathnagar and Champanagar (Urban
area)
Home furnishing and length fabric.
Amarpur (Village ) Shawl, Saree
Maharana Hatt ( Village ) Saree, Dupatta and length fabric, cotton
work
Mirjafari and surrounding village Length fabric silk, cotton, khadi.
BPL (Below Poverty Line) weavers: Bihar is the most populous state of the country and
economically also it is one of the most backward states of the India. Bhagalpur one of the
districts of Bihar which has a population of around 20 lacks ,45 % of the population belong to
BPL group (Below poverty Line) . Mostly the backward communities from the BPL group are
engaged in Handloom weaving occupation.
Male /Female status: weaving is mainly dominated by male in Bhagalpur. The are no women
weavers engaged in the weaving job. But women in the weavers family generally assist male
weavers in reeling and Bobbin filling work. Such work amounts to be 8% to 10 % of the total
weaving job.
In fact, to improve the overall productivity in the weaving job, there is a possibility of training in
the weaving job. There is a practice in the weavers community that the women are not able to
do the weaving job .Moreover, male weavers may not be willing to give training to their women
force. This is a thinking of male regarding their women that they should undertake the weaving
job as done by the males.
There could be possibility of increasing the productivity in weaving by encouraging women for
taking up the weaving job in the respective places. Perhaps a separate training can be given to
women force of the weavers family.
Health: Some of the famous silk weavers of Bhagalpur face starvation and disease. Due to the
lack of infrastructural facility available most of the people are dying of malnutrition and hunger.
Joblessness and subsequent poverty have plagued them since. There have been no aid or
rehabilitation measures from any quarters. An increasing number of them have contracted
tuberculosis and other malnutrition-related diseases. And due to this reason there is decline in
the silk industry of Bihar. In Bhagalpur most of the silk weavers are losing their battle against
the poverty, joblessness and hunger. Numbers of the weavers have changed their job to some
other lines in order to survive.
In the long run there is a need to provide Handloom weavers Health Insurance Scheme.
Education: Bihar has the lowest literacy rate of 47.58 %. Bhagalpur one of the District of Bihar
has also the lowest literacy rate. Most of the weavers in Bhagalpur District are mostly illiterate
because of the inadequate educational infrastructure facility available in the district of
Bhagalpur. There is an urgent need of providing primary and secondary educational facilities to
the children, women and weavers themselves.
Housing: Most of the weavers are living in the low roof height huts/ with tiled roof or
asbestos /tin sheets/ terracota tiles in which the frame looms cannot be accommodated. Hence
they are using pit looms for weaving silk fabrics. Moreover pit looms are much cheaper when
compared to frame looms. For example the average cost of frame looms is around Rs 5000 as
against the Rs 1500 of the cost of the pit looms.
In the long run there is a need of providing suitable houses or providing financial assistance to
built pucca houses for the weavers and their families. The condition of other infrastructural
facility like roads, drainage systems in the Bhagalpur district and in the villages where the
weavers are located are in pathetic condition.
Basic Amenities: The basic amenities like electricity, drinking water, roads and drainage
system are in very poor condition in the district of Bhagalpur. In order to improve the
productivity of the weavers, there is a need to improve these basic amenities and the living
conditions of the weavers.
Active weavers force.: during the study of the Bhagalpur weavers, it has been found that
presently, there are only 20,000 active weavers among the broad total estimate of 30, 000.
Some of the weavers have switched over to the power looms and some of them have shifted to
some other odd jobs, the reason behind this is hunger, poverty and malnutrition and non
availability of the weaving job regularly.
Job work: Most of the weavers in Bhagalpur cluster undertake only job work of weaving from
the master weavers /traders/exporters. The basic reason for this is that they do not have
sufficient market knowledge and information about the relevant trade and they do not have
investing capability for the purchase of raw materials, working capital, marketing expenses etc.
Weavers wages: In the process of negotiating wages for weavers , usually weavers do not
have much of choice as the prices are more or less dictated by the master weavers who in turn
guided by the exporters/traders . In the whole chain of wage negotiation, the weakest link is the
weaver. Hence, the weavers work on the meager wages received from the master weavers.
The weaver generally works for two or three master weavers from whom they are expecting
regular and continuous weaving job. It is rather hurting to hear that the wages of the weaver
have only raised by small percentage for the last one decade. Which means to say that there is
no increase in the wages of the weavers at least for a decade
The weaver is usually loyal to the wage- giver. He does not exchange designs given by the
master weavers /traders/exporters and keeps confidential as far as possible. Sometimes the
discontent weaver due to inadequacy of work, delayed payment and such other reasons
culminate into a change .with the result the weavers change over to some other master
weaver/traders/exporters.
It is a dynamic human relationship which keeps changing both ways. Sometimes the wage-
giver even revises down wards the committed weaving charges on the ground that the market
condition, sale price realization is poor. There are also penalties for the defective weaving done
by the weavers.
To keep the weavers on the role of a particular wage giver in the long run, they give sometimes
in advance money to the weavers. This is very common practice between the weavers, master
weaver and exporter/ traders.
Weavers Income: The income of weavers who works on job work basis earns only an average
wage of Rs 30 per day per weaver. This means to say that they are getting wages much below
the wages mentioned in minimum wages act of Rs 80 per person.
The producer weaver or where there are weavers themselves are members of the co-operative
society which receives direct export and domestic orders are able to get around 30% better
wages when compared to the weavers working on job work basis.
There has been practically there is no increase for the last 10 years in the wages of the
weavers, on the other hand there is reasonable increase in market prices. which means to say ,
there is a game play in price negotiation by the middle men like traders , master weavers etc.
Other Observations
The weavers of Bahagalpur generally blame policy maker and bad industrial policy of Bihar.
They also blame the lack of infrastructural facility which is not available to them. It was also
observed that the market condition is also one of the reasons for the decline in the growth of
the silk industry in Bhagalpur.
Weavers Survey Analysis
Table no 1. Looms Ownership
No Of Looms Working Looms
with weavers
Looms Provided
By Traders/
others
Looms Folded/
stacked /put
away
0 0 73 0
1 21 0 0
2 33 1 0
3 13 1 0
4 8 0 0
5 or more 0 0 0
Total No of
Weavers
75 75 0
The overall number of looms would work out to be 158 looms , which denote an average of
2.10 looms per each interviewed weavers.
Table No. 2 Family Weavers
Working Family Weavers Weaver Family
1 12
2 43
3 9
4 2
5 2
6 3
7 1
8 1
9 1
10 and Above 1
Total 75
Weighted Average 2.46
From the above table table 2 there is an weighted average of 2.46 weavers per each family.
Table 3. Hired Weaving Workers
Hired Workers Weavers
0 63
1 9
2 2
3 1
4 0
Total 75
Weighted weavers. 0.22
From the above (table Table 3) there is an weighted average of 0.22 hired workers per weavers
family.
Table 4 . Mode of Working
Mode Of Working No Of Weavers
Own yarn 4
Job work on lab our payment 68
Mixed 3
Total 75
68 out of 75 reporting weavers families work as job workers. Just 5 % of them buy their own
yarn as shown in the table 4
Table: 5 Yarn Consumption in Last three years (No of Weavers)
Yarn Consumption in
last three years in Kgs
Tassar Eri Matka Noel other
s
1 to5 Kg 5 40 14 30 52
5 to 10 Kg 4 6 15 12 6
11 to 20 Kg 31 9 13 9 8
21 to 30 kg 24 15 10 10 3
31 to 40 Kg 7 3 13 11 3
More than 40 Kg 4 2 10 3 3
Total 75 75 75 75 75
Weighted Average 20.61 11.64 19.63 14.46 8.02
The weavers- families reported the following yarn consumption during the last three years
(Table 5)
Tassar : 20.61Kg
Eri : 11.64Kg
Matka : 19.63Kg
Noel : 14.46Kg
Others : 8.02Kg
The total average consumption of the silk putting together all varieties comes to 74.36 per
family in last three years. It means to say that average consumption in a year comes to 24.78
kgs. Per family
Table No: 6 Product made during last the three years
Sari No. Of Weavers
None 16
1to 25 20
26 to 50 10
51 to 75 16
76 to 100 9
More than 100 4
Total 75
Weighted average 37.86
59 out of 75 reporting families are engaged in saree weaving. ( table no : 6)
Table 7: Product made during last three years
Dress Material (Mt.) No Of Weavers
Nil 0
100 to 200 Mt. 3
201 to 300 Mt. 25
301 to 400 Mt. 26
401 to 500 Mt. 21
Total 75
Weighted average 337.14
On other hand all the 75 weavers are pursuing weaving of dress material . the woven dress
material @ 5.33 metres per weaver as shown in the table 7
Table No 8: Product made during last three years
Home Furnishing fabric (Mt.) No Of Weavers
Nil 9
100 to 200 Mt. 16
201 to 300 Mt. 23
301 to 400 Mt. 19
401 to 500 Mt. 8
Total 75
Weighted Average 245.66
66 out of 75 weavers are undertaking the job of home furnishing fabric. The woven home
furnishing fabric is @ 6.06 per weaver as shown in the table 8
Table No 9: Voluntary Closure During the Year
Closure Loom Days No Of Weavers
30 to 60 Days 38
61 to 90 days 31
91 To 120 days 5
121 to 150 days 1
151 to 180 Days 0
Total 75
Weighted average 62.84
The working looms days at the disposal of the weavers family are 57670 /year (no of looms 158
* 365 days.) on the voluntary basis they did not work for 2213 loomdays as shown in the table 9
Table No 10 : Food closure During the year
Closure Loom Days No Of Weavers
Nil 45
30 to 120 days 18
121 to 210 days 9
211 to 300 days 3
300 to 390 days 0
391 to 730 days 0
Over 1000 days 0
Total 75
Weighted average 87.18
They were force to remain close for 3963 loom days (6.87%) in other words a loom was
voluntary not worked for, 25 days in a year.
Table 11: Earning During last one year own Yarn- Work
Sales Proceeds Weavers (No)
Nil 68
60,000 to 75000 1
75001 to 10,000 3
10,0001 to 1,80,000 2
More than 2,50,000 1
Total 75
Weighted Average 9666.70
7 weavers who have been interviewed and buying their own yarn .
Table: 12 Earning During last one-year job work
Wages Received( Rs ) Weavers (No)
Nil 2
Up to 24,000 21
24001 to 48000 26
48001 to 72000 22
72001 to 96 ,000 2
More than 1,25,000 1
Do not want to tell 1
Stop Weaving 0
Total 75
Weighted Average 40707

Total 73 weavers are working on job work basis .this means 97 % of the weavers are working on
job work basis .29 % of the weaver are getting an average wages of
Rs 24, 000 per annum. And a maximum average earning of 1,25,000 per annum for only one
weaver.
Table 13: weaver service centre (No of weavers)
Awareness Weavers
Yes 59
No 16
Total 75
79 % of the weavers are aware of the weaver service center as shown in the table 13 and the
rest are not aware.
Table 14: Benefit from WSC
Benefit Received Yes No Total
Training 52 23 75
Design 18 57 75
Others 15 60 75
70 % of the weavers have undergone training from weavers center out of the total weavers of
75 (Surveyed) as shown in the table 14.
24 % of the weavers have undergone training in designing from weavers center out the total
weavers of 75 (Surveyed) as shown in the Table 14
20 % of the weavers have undergone training in Dyeing and other areas from weavers service
center out the total weavers of 75 (surveyed) as shown in the table 14
Table 15 : Future Of Handloom Weaving Occupation (No Of Weavers )
Future Weavers
Bright 38
Bleak 27
Do Not Know 10
Total 75
51% of the weavers find the future of weaving occupation bright while 36% believe the future of
the weaver bleak and rest 13 % belong to do not know group as shown in the (table 15.)
Table 16: Plan to move to other occupation
Plans to move to other occupation No of weavers
Yes 8
No 67
Do not Know 0
Total 75
11 % of the weavers plan to move to other occupations as shown in the table 16:
Table 17: Reasons for the Decline (No of Weavers)
Reasons No of weavers
Traders and Govt. 43
Govt. Alone 20
Traders Alone 7
None 2
Govt. Weavers and Fate 1
Do Not Know 2
Total 75

57% of the weavers feel that the combination of traders and government are responsible for
the decline in the Handllom industry, 27 % of the weavers feel that the government alone is
responsible , 9% of the weavers feel that the traders alone responsible . as shown in the table
17
Table 18 : Family
Adult-
working
Adult Non-
working

Children
Total
Male 235 68 289 592
Female 292 59 226 577
Total 527 127 515 1169
From the Male category, 40 % of the adults are working, 11% of the adult are non working , 49
% of them are children. As shown in the table 18. From the female category , 51% of the adult
are working, 10% of the adult are non working and 39 % of them are children. As shown in the
table 18
Table 19: Assets
Premises No of weavers
Own 75
Hired 0
Total 75
100 % of the weavers have their small huts and tiled /Sheeted roof houses.
Some comments of the weavers:
1 No timely payment of the wages
2 Government should help them in marketing
3 No option available for shifting to any other work
4 Presence of power looms are effecting the Handlooms
Comments from the local designer
We have met with 4 designers whose background and comments are as follows:
1 All the Bhagalpur local designers are not having any formal education in designing and
there education background is of only matric pass.
2 All of them have undergone short duration training courses in designing from the
weavers service center Bhagalpur .
3 None of the 4 designers is aware of success or failure of their designs .
4 None of the 4 designers have met designers from other cities /institutions .
V. Analysis of Business Operations
Price v/s fabric quality variation bar graph
Price V/s Fabric Quality Variation
225 228
243
160
190
166
0
50
100
150
200
250
300
T
a
s
s
a
r
*
D
u
p
i
o
n
M
a
t
k
a

*
M
a
t
k
a
T
a
s
s
a
r
*
M
a
t
k
a
Quality of the Fabric
P
r
i
c
e
/
m
Price/m
From the above bar graph , it can be seen that the lowest price of Tassar Tassar quality is Rs
160.per metre . and the highest price of Rs 243 per metre of Matka Matka quality. The prices
of other qualities like Tassar Dupion, Matka Noel, Tassar Matka, Tassar Ghicha lie
between the maximum and minimum prices as indicated above.
Indicative quality wise yarn price :
quality wise Indicative yarn prices
1600
1300
1200
1400
2000
1600
850
1600
400
0
500
1000
1500
2000
2500
C
h
i
n
e
s
e
M
a
t
k
a
E
r
i
G
h
i
c
h
a
L
i
n
e
n
Quality of yarn
P
r
i
c
e

p
e
r

K
g
Price/Kg
It can be seen from the above bar graph the lowest price of the yarn quality is of Linen at Rs
400 per Kg. And the highest quality is of Eri at Rs Rs 2000 per Kg. The prices of other yarn
quality like Chinese, Mulberry, matka, Katya, dupion ghicha, tassar lie between the maximum
and minimum as indicated above.
The yarn qualities of Tassar, Matka and Dupion amounts to the share of 70 % of the total
consumption and the share of the remaining qualities amounting to balance 30 %.
4 PS ANALYSIS
1. Product :
From the above 4 ps diagram , it can be seen that products are one of the important factor
influencing cluster marketing strategies. Some of the important product proposed to
manufacture in Bhagalpur cluster are :
, Silk Dress
material.
, Saree , Salwar Suits , Kurta-
Pyjama
, Cushion Covers , Bed
Sheets
, Shawls , Scarves
, Curtains , Throws , Table Covers, Napkins,
Runners
,
Domestic Turnover (In Laks)
Estimated Turnover End of the financial year
100 2007-08
200 2008-09
500 2009-10
It can be seen from the above table , the objective of the marketing plan of the Bhgalpur
cluster are to make a modest beginning of 100 lacks turnovers in domestic trade by the end of
financial year 2007-08 and to reach the target of 500 lacks by the end of 2009-10 .
Export turnover (In Lacks)
Estimated Turnover End of the financial year
50 2007-08
100 2008-09
300 2009-10
It can be seen from the above table , the objective of the marketing plan of the Bhgalpur
cluster are to make a modest beginning of 50 lacks turnovers in export turnover by the end of
financial year 2007-08 and to reach the target of 300 lacks by the end of 2009-10 .
Sarees : In case of silk sarees there is a growing demand in the domestic market for silk sarees
in the higher income market segment. Of late, even the higher income layer of the middle class
consumers are going in for such high priced silk sarees.
Quality of Sarees t varies depending on the size of the yarn . Usually the gram age of the fabric
varies from 70 GSM to 250 Depending on the GSM the weight of the sarees also varies.
Accordingly, the price of the srees also grows up with the overall weight of the saris. Even in the
SAARC countries the Indian quality saris are accepted as they are.
Design: In India very few branded sarees are sold similar to that of jacquarde design of Nalli
brand quality. Other silk sarees from Kanchipuram are being sold mainly with border dyed or
zaried along the borders. Some of them could be with Dobby design.
Similarly with there help of good designers we can produce good quality value added Handloom
silk sarees for the domestic as well as international market.
Silk sarees which are branded and value added like Nalli sarees are being sold in the domestic
market as well as the export markets of SARRC countries. Apart from Nalli sarees, the handloom
silk sarees from Kanchivaram (Tamil Nadu) and Dharamavaram (A.P) , and Banaras silk sarees
and Murshidabad ( Bengal ) are also being sold in the domestic market.
With the branding and value addition on the Bhagalpur silk sarees we are hopeful that the
market share of Bhaglpur silk sarees can go up drastically.
Packaging: The packaging of silk sarees in India is not up to the mark as compare to the
standard of packaging at international level. Generally Indians silk sarees are folded and kept
in the low quality polythene bags and packed in low quality cotton and wooden boxes.
As per the international standards sarees are to be packed in good quality HDPE sheets and
they are to be in turn packed in 7/9 ply corrugated boxes so that they become transport6
worthy by road , by Sea and by Air. Bar code markings along with brand name to be printed on
the polythene sheets used for packing the sarees.
The brand name stickers can also be put on the sarees.
Sizes : Normal Indian sizes of sarees varies from 5to 6 meters in length and around 1 metre in
width .
Warranty: there should be a proper system of replacing the defective sarees so that
consumers gets confidence on the brand and demand in the long run increases
Silk Suits: In case of silk suits there is a large market for entire salwar suits throughout the
country .out of the total market 20 % of the higher income segment consumers will go for silk
suits. Hence relatively there is a large potential domestic market.
Quality of silk suits: The quality of the silk suits depends on the count of the yarn and gram
age of the silk fabric. The suits can be made with ranging from 60 GSM to 120GSM fabrics the
variation of the weight the prices will also go up.
Design of silk suit: there are several types of silk fabrics. Usually in India, the Jaquarde and
Dobby weaving is commonly weaved in the fabric itself. One can create various designs by
printing over the fabric. Some of the popular printing methods are screen printing, block
printing, Mud printing and offset printing. Various other designs can also be produce by
embroidery work with computerized embroidery, sewing machine embroidery and hand
embroidery. In Bhgalpur cluster in our CFC we are proposing embroidery design center
consisting of sewing machines and hand embroidery facilities.
Presently, there are several branded and unbranded suits and suit fabric being sold in the
domestic market. In the recent past several large retail showrooms like Life style, west side etc
have come up in the country.
The silk suit material from Bhagalpur can be sold as suit length of fabrics and also ready made
suits with Bhagalpur brand can also be sold in large retail showrooms. In case of suit material
the main competition in the domestic market is from mill made sector, power loom sector.
The suit material and ready made suit can also be exported to neighboring SAARC, Middle East
countries.
Packaging: The packaging of silk suits in India is not up to the mark as compare to the
standard of packaging at international level. Generally Indians silk suits are folded and kept in
the low quality polythene bags and packed in low quality cotton and wooden boxes.
As per the international standards silk suits are to be packed in good quality HDPE sheets and
they are to be in turn packed in 7/9 ply corrugated boxes so that they become transport6
worthy by road, by Sea and by Air. Bar code markings along with brand name to be printed on
the polythene sheets used for packing the silk suits.
The brand name stickers can also be put on the suits
Size: The suit length varies from 5 to 5 and half meter in India. And when they are made as
readymade garments the normal sizes of small, medium, large and extra large have standard
dimensions. usually blow 13 inch chest size are called small size, between 30 t0 34 chest size
are called medium and than 34-40 in chest size are called large. about 40 inch size chest they
are called extra large.
Warranty: There should be a proper system of replacing the defective suits so that consumers
gets confidence on the brand and demand in the long run increases
Home Furnishing made ups : There is a new trend in the domestic market , home Furnishing
made ups like Bed sheets , Cushion covers, Curtains, sofa covers, table covers etc are being
sold through large retail showrooms through out the country. For example in the city of Delhi,
we have very good Showrooms of Home Furnishing like Life Style, Shyam Ahuja, Jag dish ,
Seasons , Maspar etc . These showrooms are opened in other cities of our country.
Home Furnishing made ups also faces competition from the mill made sector like Vimal,
Bombay Dyeing, Shamken etc and made ups from power looms sectors. But there is a very
good demand within the country if these made ups are produced with value addition and
keeping in view the international quality.
It is proposed to market the Home Furnishing Made ups from Bhagalpur clusters to sell in the
most of the cities and towns by creating a good network of Distributors/Agents/ Dealers and
Retailers .
Quality of home furnishing made ups: the quality of Home Furnishing made ups depends on the
exact count of the yarn and Gram age of the fabric. Usually, 80 to 100 GSM are used for
manufacturing Home Furnishings made ups and these fabrics and made ups are checked for
quality at raw material stage that is cocoons/fabrics , fabric stage and at the end product of
the readymade garments . The quality is checked in terms of parameters like count of the yarn,
GSM of the fabrics , Dyeing and printing quality in terms of color fastness . Finally, the made up
are checked for the quality of stitching, sizes etc.
Design of Home furnishing made ups: in case of Home furnishing made up the Design aspect is
very important from the angle of consumer. The designing can be made at the level of weaving
fabric by using the techniques of Jacquard, Dobby etc.

The latest design can also be produced by value addition in dyeing, printing and embroidery
work. We are proposing the design centre with the above facilities to be set up at CFC of
Bhgalpur cluster.
Packaging: packaging of home furnishing made ups comprises of polythene, wrapping and
enclosing the various made ups in the good quality LDP / HDP qualities. After packing the made
ups in polythene bags, their in turn placed in a good quality 7/9 ply cartons. The bar code
instructions and labeling instructions from the buyer are also arranged on the product or
polythene bags as per buyers requirements. Some times the brand tags is also attached with
the product.
Size
Made Ups Usual sizes
Cushion Covers 12*12 , 16*16, 18*18, 22*22, 24*24
Bed Shets 120*180 cm , 180*220 cm , 220* 220 cm ,250*250
cm
__ Curtains 3*6
__ Throws 50*60 ,
__ Table Covers, 100*100cm,,125*125cm, 135*150cm, 150*150 cm
Warranty: There should be a proper system of replacing the defective made ups so that
consumers gets confidence on the brand and demand in the long run increases.
Export Marketing: The total Indias Handloom product exports including fabrics is around
4000 crores. Out of the total Handloom exports silk fabrics and made ups contribute a share of
around 40 % of total export of 1600 crores.
Out of the total 1600 crores silk and silk products exports from India, the Bhagalpur cluster
presently, producing and exporting around 50 crores of turnovers which amounts to 12.5%.
2. Price
The prices are to be worked out for each product of Sarees, suits and home furnishing made ups
and the final price list is to be made for the use of consumer, dealers and distributors while
making the sale price list the factors like total cost of the product, competitors prices and the
market prices are to be kept in mind.
The domestic prices for Bhgalpur Handloom silk sarees will vary from Rs 1500 to Rs 5000
depending on the Gram age of the fabric and value addition. Similarly the prices of silk suits in
the domestic market will vary from Rs 1500 to 4000 depending on the exact quality of the
fabric, count of the yarn and value addition work.
Payment Period and Credit Terms: payment period in India usually extends from 60 days to
90 days and the payment on abroad of 60 to 120 days of L/C , D.A, D.P terms. While extending
the credit terms to the customers there is a need to check up the credentials of the customer in
terms of credit worthiness.
3. Promotion
We propose to appoint 4 to 5 sales executive /consultants for domestic markets who will create
a network of distributors/dealers agents and retailers . There would be monthly monitoring of
sales and it would be our endeavor to achieve the projected sales target of 100 lacks in the
financial year 2007-08 in the domestic market and 50 lacks in the financial year 2007-08 in the
international market.
Export sales would be promoted by appointing specialized overseas business promotion agents
in the selected countries like U.S.A, Germany, U.K, France, Australia, Japan and other European
Union countries.
For sarees and salwar suits the target would be Indians settled abroad and we propose to adopt
some of the following strategies and tools in order to achieve the projected targets.
1. Participation in the domestic exhibitions at various levels of district, states and national.
2. Participation in the international exhibitions for promotion of export silks.
3. Participation in the buyers seller meets in domestic market as well as international market.
4. Appointing local distributors/dealers/retailers for the promotion of sales in the domestic
market.
5. Appointment of the selected overseas agents in the selected overseas countries.
6. By creating new design with the help of qualified designer in order to increase the sales in
the domestic as well as international market.
7. By creating a very good website with the details of the product and prices the sales through
internet can be promoted.
1. Places
a. As envisaged in the action plan we propose to create permanent infrastructure for
showrooms at Bhagalpur , Patna , Delhi and Kolkata
b. Creation of marketing network for promoting sales in domestic market through
distributor/dealers and retailers up to the level of all major district in India initially.
c. Appointments of specialized overseas agents in U.S.A, Germany, U.K, France, Australia,
Japan and other European Union countries. For promoting export sales.
d. Since Bhgalpur is situated 220km east of state capital of Bihar the markets like Patna,
Metro cities of Kolkata and New Delhi can be explored as the initial sales exploration sales
location.
e. For transport of the fabrics and made ups suits and sarees there are established and
recognised transport companies through which textile trade already is being carried out
VI. Inter-Firm Industrial Organisation:
Analysis of Cluster Map
Facilitating and promotional Agencies
The following organizations are associated directly or indirectly with the basic weavers and their
cooperative societies located in Bhagalpur Cluster.
1. Weavers service centre (GOI)
2. District Industry Centre (DIC , GOB) :
3. Directorate of Handlooms (Industries Department, GOB)
4. Central Silk Board.
5. Exporters at Bhagalpur, Kolkata and New Delhi
6. Designers at Bhagalpur.
7. Indian Silk Export promotion Council.
8. Financial Institution.
1 Lead Bank
2 Co-operative Banks
3 NABARD
1. Weavers service centre (GOI): The weavers service centre at Bhagalpur was set up
in the year 1974 for the development of Handloom silk industry in the state of Bihar.
The main activity of WSC (weaver service centre) at Bhagalpur are imparting training to
the weavers in the following areas
Product Development
Design Development
Printing and dyeing
These activities are generally done for the promotion, encouragement and support for the
export of Handloom silk of Bhagalpur abroad. Many training progammes are organized at
Bhagalpur to develop awareness among the Handloom silk weavers of Bhagalpur. It also
provides assistance to solve different textile industrys related problems by interacting with
various Govt. and Non- Govt. organizations.
The weavers service centre of Bhagalpur have different facilities for analyzing fabric
construction , counts and strength of yarns, analysis of blended yarns and fabrics, and fabrics.
Central silk Board : The main objective of central silk board is to promote the development
and growth of sericulture and handloom silk industry . It also provides assistance, support and
backing for the Research, Development, Extension and training to the weavers of Handloom
Silk. Besides, the CSB organizes production and supply of quality silkworm seed, mulberry and
tassar cuttings etc. and also undertakes directly as well as jointly with the state sericulture
departments, the implementation of various sericulture projects.
But at the Bhagalpur , CSB is not contributing any training or any other activity to promote the
Handloom silk industry . They are presently assisting power loom sector.
Directorate of Handlooms DOH
(Industry Department Government of Bihar)
Directorate of Handloom help out the co-operative societies in various works monitors the work
of co-operative societies. It was suppose to organize various fairs, exhibition of handlooms silk
made by the weavers of Bhagalpur. This department is not active in providing any assistance
to handloom silk industry .
Indian Silk Export Promotion Council: The main objective of Indian silk export promotion
council is the promotion of silk export from India. The main work of Indian silk Export Promotion
Council is to promote the right contact in silk business abroad. It organizes buyer and seller
meets for the silk products. It helps in the participation in international textile fairs.
There si no branch of Indian silk Export promotion council at Bhagalpur.
Bihar institute of silk and Textile Bhagalpur : The institute offer 4 years of B.E in silk
technology and textile technology. There are about 70 staff and 30 students in the Bihar
Institute of silk and textile Bhagalpur. The overall condition of the institute is pathetic. Presently
there is no contribution or assistance to the Bhagalpur Handloom silk Industry from this
institute.
District Industry centre Government of Bihar: District Industry centre is a state
Government unit functioning at district level for the development of Handloom silk Industry of
Bhagalpur.
This department also does not offer any assistance or promotional measures to the Handloom
silk industry at Bhagalpur
Financial institution: The major financial institutions are Lead Bank (UCO Bank), Punjab
National Bank, State Bank of India, Central Bank of India, Bhagalpur Central Co-operative Bank
Limited and NABARD. The role of banks for providing financial assistance to the Weavers of
Bhagalpur is nominal. The Bhagalpur central Co-operative bank has given 25 credit cards to
Individual weavers in puraini village of Bhgalpur. They have also given 1 lack cash credit facility
to Puraini weavers co-operative society. There has been no financial assistance given to the
weavers by NABARD.
Supply chain and value proposition Analysis
Economics and cost data of typical products being manufactured by Bhagalpur weavers
4 Silk Dress material.
5 Saree
6 Salwar Suits
7 Kurta- Pyjama
8 Cushion Covers
9 Bed Sheets
10 Shawls
11 Scarves
12 Curtains
13 Throws
14 Table Covers, Napkins, Runners
Value chain Analysis for Bhagalpur silk sarees (Tassar Tassar 80 GSM including Blouse total
length 6.25 metre.)
Other qualities of silk fabric with which sarees can be weaved :
1. Tassar Matka
2. Tassar Dupion
3. Tassar Noel
4. Matka Noel
5. Matka Matka
Price range will vary from Minimum of 1500 / saree to 3000.
From the above diagram , it can be seen the costing of Tassar Silk saree from the stage of silk
yarn then going through the process of dyeing, weaving , Finishing, dry cleaning and packing .
The Finally packed saree would go to Master weaver/ trader and then passes to distributor
/dealer , and finally reaches retailer as shown in the above diagram. And then retailers sells
the sarees to the ultimate consumer. The price mark ups at each stage are shown in the above
diagram up to the consumer level.
Fabrics (Matka * Noel , 183/m) GSM 270
Dry Cleaning
And packing
30 Rs per
saree
Dry Cleaning
And packing
30 Rs per
saree
Finishing
20 Rs per
saree
Finishing
20 Rs per
saree
Weaving 250
Rs per saree
Weaving 250
Rs per saree
Dyeing (pallu)
100 gms yarn
dyeing @ 30
Rs per kg = 3
Dyeing (pallu)
100 gms yarn
dyeing @ 30
Rs per kg = 3
Silk Yarn: 500
gms @
1600/kg = Rs
800
80 GSM
Silk Yarn: 500
gms @
1600/kg = Rs
800
80 GSM
Trader /Master
Weaver (7% of
Rs1103) = Rs
77
Trader /Master
Weaver (7% of
Rs1103) = Rs
77
Distributor/
Dealer
(10 % of
Rs1180)
= Rs118
Distributor/
Dealer
(10 % of
Rs1180)
= Rs118
Retailer
(20% of
Rs1298
)= Rs259
Retailer
(20% of
Rs1298
)= Rs259
From the above diagram, it can be seen the costing of Matka *Noel silk fabric from
the stage of silk yarn then going through the process of dyeing, weaving , Finishing,
dry cleaning and packing
The Finally packed saree would go to Master weaver/ trader and then passes to
exporter on one side and the other side it passes to traders, and finally it passes to
distributor and through distributor to retailer.
Home Furnishing Made ups, Cushion covers , 250 GSM , Matka Matka
Dry Cleaning
and
packing=Rs 10
Dry Cleaning
and
packing=Rs 10
Master
Weaver
(5% of
Rs177)=Rs9
Master
Weaver
(5% of
Rs177)=Rs9
Weaving @
16 Rs per
metre =Rs 16
Weaving @
16 Rs per
metre =Rs 16
Finishing Rs
5 per metre
Finishing Rs
5 per metre
Exporter
10% of Rs186
= Rs19
Exporter
10% of Rs186
= Rs19
Trader
10% of
186= Rs19
Trader
10% of
186= Rs19
Distributor/Dealer
10% of Rs 205=21
Distributor/Dealer
10% of Rs 205=21
Dyeing 270
gm @30 Rs
per Kg = Rs
11
Dyeing 270
gm @30 Rs
per Kg = Rs
11
Retailer 20% of Rs
226=Rs 45
Final price =Rs
251per metre
Retailer 20% of Rs
226=Rs 45
Final price =Rs
251per metre
Silk yarn
Noel :140gm
@Rs 310 per
kg =Rs 43.50
Matka Mill
Made 130 gm
@Rs 700 /Kg
=Rs 91
Total =Rs 135
Silk yarn
Noel :140gm
@Rs 310 per
kg =Rs 43.50
Matka Mill
Made 130 gm
@Rs 700 /Kg
=Rs 91
Total =Rs 135
Dry Cleaning and
packing
Rs 15 per piece
Finishing
Rs 5 per piece
Master Weaver (7%
of Rs 189 = Rs 13
From the above diagram , it can be seen the costing of home furnishing made up , (Cushin
covers) from the stage of silk yarn then going through the process of dyeing, weaving ,
stitching, Finishing, dry cleaning and packing .
The Finally packed saree would go to Master weaver/ trader and then passes to distributor
/dealer , and finally reaches to the exporters.. The price mark ups at each stage are shown in
the above diagram up to the consumer level.
Generally the FOB price of particular made ups is less by 3 to 4 times when compared to
international retail price.
Silk yarn 125 gm
@Rs 1200 per kg
=Rs 144
Dyeing Rs 2 per
piece @ Rs 30 per
Kg
Weaving Rs 8 per
piece @Rs 16/m
Stitching
Rs 15 per piece
Exporter 20 % of
202= Rs 40
FOB price = Rs242
Or
US$ =5.5 per piece
Suit length ( 90 GSM , Tassar Dupion , Lengrh 5 metre.)
Pre-Intervention
From the above diagram , it can be seen the costing of silk suit from the stage of silk yarn
then going through the process of dyeing, weaving , Finishing, dry cleaning and packing .
The Finally packed suit would go to Master weaver/ trader and then passes to distributor
/dealer , and finally reaches retailer as shown in the above diagram. And then retailers sells
the suit to the ultimate consumer. The price mark ups at each stage are shown in the above
diagram up to the consumer level.
Dry Cleaning and
packing Rs 30
per suit @ Rs 6
per metre
Dry Cleaning and
packing Rs 30
per suit @ Rs 6
per metre
Dry Cleaning and
packing
Rs 15 per piece
Dry Cleaning and
packing
Rs 15 per piece
Finishing Rs 25
per suit @ Rs 5
per meter
Finishing Rs 25
per suit @ Rs 5
per meter
Weaving @
20 /m = Rs 100
Weaving @
20 /m = Rs 100
Yarn dyeing Rs
13.50 per suit @
Rs 30 per Kg
Yarn dyeing Rs
13.50 per suit @
Rs 30 per Kg
Silk yarn = 450
gram (weight) @
1800 /kg =Rs
810
Silk yarn = 450
gram (weight) @
1800 /kg =Rs
810
Trader/Master
weaver Rs 979 of
7 % =Rs 69
Trader/Master
weaver Rs 979 of
7 % =Rs 69
Distributor/Dealer
Rs 1048 of 10 %
= 105
Distributor/Dealer
Rs 1048 of 10 %
= 105
Retailer =rs 1153
of 20 % = Rs 231
Retailer =rs 1153
of 20 % = Rs 231
Consumer Price=
Rs 1384
Consumer Price=
Rs 1384
Suit length ( 90 GSM , Tassar Dupion , Lengrh 5 metre.)
Post -Intervention
Dry Cleaning and
packing Rs 30 per
suit @ Rs 6 per
metre
Dry Cleaning and
packing Rs 30 per
suit @ Rs 6 per
metre
Dry Cleaning and
packing
Rs 15 per piece
Dry Cleaning and
packing
Rs 15 per piece
Finishing Rs 25 per
suit @ Rs 5 per
meter
Finishing Rs 25 per
suit @ Rs 5 per
meter
Weaving @ 20 /m =
Rs 100
Weaving @ 20 /m =
Rs 100
Yarn dyeing Rs
11.25 per suit @ Rs
25 per Kg
Yarn dyeing Rs
11.25 per suit @ Rs
25 per Kg
Silk yarn = 450 gram
(weight) @ 1600 /kg
=Rs 720
Silk yarn = 450 gram
(weight) @ 1600 /kg
=Rs 720
Trader/Master
weaver Rs 860 of 7
% =Rs 60
Trader/Master
weaver Rs 860 of 7
% =Rs 60
Distributor/Dealer Rs
920 of 10 % = 90
Distributor/Dealer Rs
920 of 10 % = 90
Retailer =Rs 1010 of
20 % = Rs 200
Retailer =Rs 1010 of
20 % = Rs 200
Consumer Price= Rs
1210
Consumer Price= Rs
1210
VII. SWOT Analysis
Strength Weakness
_ Traditional preference for
silk saris by the higher
income group.
_ Availability of skilled
Handloom weavers.
_ High demand of value
added handloom silk sarees
in metro cities like New
Delhi, Kolkata, patna.
_Highly unorganized Cluster.
_Inadequate infrastructural Facilities at
Bhagalpur.
_Lack of upgraded and improved
Technology.
_Irregular work for weavers.
_Low credit from financial
_Lack of printing and dying facilities .
Costlier products can only affordable by
higher income group.
__
Unavailability of raw materials like cocoons,
and yarns at reasonable prices.
__
Lack of strong market network for domestic
as well as international market.
__
Lack of latest design availability for value
additional products.
Opportunity
, Very good export potential for
home furnishing value added
made ups in the selected
overseas countries.
, Brand building for Handloom
silk value added products in
the domestic market as well
as in the international
market.
, Product diversification like
that of home furnishing value
added made ups.
, Very large Indian market for
branded silk products as the
present high growth of retail
sales in India
Threat
, Biggest threat from the power loom sector
, Threat from silk products from china and
Mulberry silk products from Karnataka and
other southern states.
, weavers are day by day taking up other
profession due to inadequate weaving job
and wages.
Sign wave diagram of SWOT Analysis
VIII. Vision of Bhagalpur Cluster
To reach out 5000 weavers in order to improve and enhance the living condition and
productivity by 2010
How
By re-launching the brand image of Bhagalpur cluster in domestic as well as
international market, to bridge the gaps in the area of technology , marketing,
capacity building and institutional development.
Diagnosis study: It can be seen from the diagram of the methodology and approach for
diagnostic study of Bhagalpur weavers can be broadly divided into two sides, one is the Supply
side, the other is the Demand side.
Supply Side
Identification of MCFs:
In the supply side the first step is the identification and the selection of the MCFs (Master
Community Facilitator.) from the grass root level of 5000 weavers. We would select 25 weavers
from the grass root weavers. Further Mcfs would be divided into four functional small groups of
5-6 persons from among 25 selected weavers.
Each of these 5-6 MCFswill be trained by the specialist from the respective areas like dying,
printing, social intervention and group coordination.
These trained Mcfs in the different specialized area will be looking after the facilities to be
installed in the common facility centre and in turn they will also arrange to train the grassroots
level handloom weavers in the respective area.
Strengthening and Developing MCFs: The specialist from the respective areas of printing,
dyeing, social intervention and group coordination will be deputed to Bhagalpur for arranging
training and coaching of MCFs (Master community Facilitator.)
Technical Assessment: Once the MCFs are trained in the respective areas their capabilities
would be technically assessed by the experts in the respective areas of Dying, printing, social
intervention and group coordination. This is only a check function so that MCFs are very clear in
their mind and ready to impart training to the basic Handloom weavers and to be ready for
maintaing respective departments of in the proposed CFC setup.
CFC Establishment: A common facility centre with the improvements in various areas as
required would be established for the use of basic weavers and co-operative societies located in
the Bhgalpur cluster. The proposed common facility centre comprises of raw material bank,
improved frame looms, improved dying facilities, printing facilities, sampling and design centre,
embroidery section, stitching and fabrication, finishing and packaging and labeling, business
information centre including domestic and Export marketing activities.

However the detailed structure and composition of the CFC would be discussed separately
under the chapter of vision.
Saving and credit linkage: once the weavers groups are formed and their master craftsmen
are trained in their respective technical trades they would be connected with the commercial
banks , lead bank , NABARD, SIDBI in order to get their micro-financing for purchase of raw
material , working capital and for marketing activities.
BDS programme: MCFs would be thought regarding various Business Development Services
like lime materials as well as associated accessories, trims etc.so that they are organized for
efficient execution of domestic or export orders.
Consortium of traders/ manufacturers: consortium of traders and manufacturers are to be
formed and proper co-ordination should be kept between cluster management and these
consortiums. So that facilities in CFC can be used successfully in order to manufacture and
produce value added products for domestic as well as international market.
Demand Side:
Study of Marketing Strategy: In the demand side the first step is the study of marketing
strategy
1 Goal: we are planning to achieve following turnover in domestic as well as international
markets.
Domestic Turnover (In Laks)
Estimated Turnover End of the financial year
100 2007-08
200 2008-09
500 2009-10
2 Strategy for domestic marketing: we propose to appoint 4to 5 marketing
consultants/agents who will travel throughout the country and select the distributors
/agents/Retailers.
3 Monthly performance and sales results would be monitored by ASEED from second year
onwards (2007-08).
4 It is proposed to participate in domestic exhibitions, in different places as indicated in
the action plan in order to establish the Brand image of the Bagalpur cluster and to
organize sales.
5 To participate in buyer-seller meet in the selected places as mentioned in the action
plan.
Export turnover (In Laks)
Estimated Turnover End of the financial year
50 2007-08
100 2008-09
300 2009-10
Strategy for Export marketing
1 Appointment of specialized overseas agents in the major international markets like
Germany, France, U.K., U.S.A, Australia, Japan and other European countries.
2 To contact and introduce Bhgalpur cluster to all the buying agents located in New Delhi,
Mumbai, and Bangalore.
3 To identify major silk home furnishing overseas buyers and to contact them for export
orders.
4 To participate in international exhibitions as mentioned in the action plan in order to
establish the image of the Bhgalpur cluster and to book the export orders.
5 To participate in buyer-seller meet in the selected places as mentioned in the action plan
Distribution and Channel Development: It is proposed to develop a proper distribution,
agents and retailers with the help of sales executive throughout the country so that the sales
are made on continuous basis and also to establish the Brand image throughout the country.
Capacity Building
Vision of Bhagalpur Cluster to improve the overall working conditions and Productivity of
Bhagalpur Weavers by Re-Launching the Brand Image of Bhagalpur Cluster in Domestic as well
as International Market and to bridge the gaps in the area of Technology, Marketing, Capacity
Building and Institutional Development .
.
Raw Material
Bank,
Cocoons, Yarn
100 MT
Dyeing Centre
Water softening plant,
Chamber Dyeing, Tie-
Die
500 kg per Day
Weaving Centre
Improved -100 Looms
(jacquard/
Dobby/plain)
Sampling and
Designing Centre
-25 sewing
machines
Finishing and
packing centre Business service Centre
MIS, Marketing,
procurement etc
Direct marketing
Channel
Distributor/Dealers/retail
ers
Traders Exporters
Banks/SIDBI/
NABARD
Weavers Service
Centre
Handloom
Directorate
(State Govt
Indian silk
Export
Promotion
Council
Handloom Export
promotion council
Embroidery Centre
-10 M/c
Chartered
Accountant/Tax
Consultant
National Level fashion
Designers
Marketing Consultants
Printing
Centre -
screen, Block,
mud printing
Clusters
weavers

Proposed structure and composition of CFC
Year Sales Turnover Wage Payment
to weavers
Profit/Loss (Rs.
In Lac)
2004-05 15.24 1.75 0.39
2003-04 3.64 0.39 0.28
2002-03 2.94 0.31 0.20
During the year 2004- 05 they have booked better performance due to the opportunity of
booking the orders form Delhi Haat and other market.
Since all the member weavers of 289 strength cannot be engaged by them, some of them are
taking of weaving job form other cooperative societies and traders. However it is reported that
weavers are earning minimum wage of 18000 per year and maximum 30, 000 per year. The
average wage of the weavers in the society works out to be Rs. 24000 per annum. This is a
much better paid by other master weavers. A weaver family comprising of three members gets
only Rs. 90 per day s wages direct form the master weavers where as the
weavers family form purini society get wages of Rs. 125 per day/family. This means
that the wages being paid by puraini are higher by 28% which is average reasonable.
The weaver of Puraini weavers cooperative society availed of the following
benefits:
Workshee
t
Nil Health Nil Insuranc
e
25 10
ID Card Nil Credit
Card
40 Loan Other Nil
They had made a beginning by installing at their societies facility center by installing 10
improved frame looms including Dobby and Jacquard loom
Presently they are organizing dyeing job from out side sources. However Bhagalpur does not
have any printing facility except there was few attempts for developing printing facility at the
weavers Service Centre, Bhagalpur. WSC Bhagalpur had given them training in weaving as well
as in designing through local designers.
This Purani cooperative society is on of the upcoming cooperative society which can o better in
future with the help of WSC and common facility Centre to be produced.
Other noteworthy cooperative societies operating in Bhagalpur cluster area re as
follows:
1. WEAVERFTCO : Bhagalpur proper
2. The Champanagar Tanti primary weavers co-opative society ltd. Moh- Champanagar
Bhagalpur.
3. the sahebganj primary weavers cooperative society ltd, Moh: Sahebganj, Bhagaqlpur,
4. Dumrama primary weavers cooperative society Ltd., Dumrama , Banka
5. Daryapur primary weavers cooperative society ltd. Village P.O : Dariyapur, Bhagalpur