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.
Aseed’s 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

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 . Himachal Pradesh. Silk Industry at Bhagalpur cluster: In Bhagalpur the weavers service centre (GOI) was established in the year 1974. Eri silk : Eri silk is mostly found in the north eastern states and Assam. orissa and karnatka. Oak Tasar: It is mainly found ion the state of the sub – Himalayan belt of India covering the states of Manipur. Bengal and orissa. The balance 50% of the fabric is converted into Sarees and other dress materials. west Bengal. Tasar silk is less shiny than mulberry silk. Muga silk is generally used in making products of Sarees and Chaddars.Pyjama 6 Cushion Covers 7 Bed Sheets 8 Shawls 9 Scarves 10 Curtains 11 Throws 12 Table Covers. The major product mix being produced in Bhagalpur are: 2 Silk Dress material. Uttar Pradesh. Assam. Tassar is copperish in colour and this silk is mainly used for furnishing and interiors.Eri silk is mainy used for making chhadars. Mulberry silk comes from Bombyx mori L silkworm. Kolkata. Tasar Silk: Tasar silk is mainly found in the states of Jharkhand. Chattisgarh and orissa besides Maharashtra. Mumbai and New Delhi and the remaining 200 crores domestic turnover is controlled by the . Andhra Pradesh. Jammu and Kashmir. These four states accounts for 92% of the total Mulberry silk production. New Delhi and Mumbai. This fabric is formed mostly in natural colour and can be used for home furnishing made ups. Tamil Nadu.000 Handlooms found in Bhagalpur. Kolkata. West Bengal. 3 Saree 4 Salwar Suits. and Mehgalaya. Napkins. 50% of the silk Tassar fabric is being exported by the exporters located in Bhagalpur. Runners The production of Handloom tassar silk in the form of fabric is 200 MT annually. with a view to developing handloom silk industry in the state of Bihar. Matka : Matka is generally found in the states of Bengal. Dupatta 5 Kurta. and Andhra Pradesh. It is also found in the states of Bihar. There are about 30. 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.3 Muga 4 Eri 5 Matka Mulberry Silk: Mulberry silk are found in the states of Karnataka. Muga Silk : The Muga silk is golden yellow in colour. which totally feeds on the mulberry plant.000 (Approx) handloom weavers found in Bhagalpur and 25. There have been partially successful in providing training to weavers and in the area of designing. and Jammu & Kashmir. printing and dyeing. Muga silk is generally found in Assam so it is called as pride of Assam. The export of 50 crores annual turnover is controlled by the exporters located in Bhagalpur . but Tasar silk has it own feel and appeal.

P . They are dictating terms to the silk industry at Bhagalpur. However the saree industry gradually suffered a setback in production as well as in marketing these sarees in the domestic market. Bhagalpur produces 100 crores silk made ups as against the total production of 3.traders . The silk sarees produced in Bhagalpur were popular in the domestic market during 1970-90s. Hence there is an acute need to create the raw material bank in the proposed common facility center at Bhagalpur. 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. In addition to the above problems. The present share of the sarees is around 5% of the total market of the silk sarees in the country. Bhagalpur weavers are not having the access to the good printing. Primarily. In the area of home furnishing made ups. With the few selected improvements suggested elsewhere in this report. 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. in Tamil Nadu and Dharmavaram in A. Bhagalpur cluster can produce good quality home furnishings made ups. dyeing. which can be exported. The Bhagalpur cluster is the second highest in silk fabric production and exports after the Karnataka state. Presently the silk Sarees produced in the South like Kanchipuram. Bhagalpur silk home furnishing made ups are slowly becoming popular in the overseas markets III. HISTORICAL EVOLUTION OF THE CLUSTER GEOGRAPHIC LOCATION: . designing facilities which are required for the production of good quality product mix for export market as well as for domestic market.P along with the specific brand like Nalli sarees have become very popular and captured the market in India. Banaras in U.300 crores of silk made ups from India.

Ismailpur. Wheat. Narayanpur. Kahalgoan.. Barley and oilseeds. 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 total schedule caste and schedule tribe population of Bhagalpur is 2.449 resides in urban area. Sabour. Mahabharatha and Panchtantra. out of this 15.618. In Bhagalpur there are 16 blocks. Badua. The main language of Bhagalpur is Angika. The names of the blocks are: Pirpainti. Chanan . Bhagalpur is known as silk city as it is famous worldwide for its silk production. The main crops that are grown in Bhagalpur is Rice. Nathnagar.The gangetic plain of Bhagalpur is very fertile. The economy of Bhagalpur is dependent mainly on agriculture and silk. Bihpur. Sultanganj. The area of Bhagalpur is spread over 2570 km. HISTORICAL BACKGROUND Early civilizations have fostered along the fertile coasts of the river Ganges. Gauradih. 30. Jagdishpur.66. Bhagalpur is a town and the administrative headquarters of Bhagalpur district Bihar state in the eastern part of India . Gopalpur. Navgachia. "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). Total population of Bhagalpur is 19. Sahkund.518 resides in rural area and 3. Kharik.967.Maize. Rangrachowk. Sanhaula. The main rivers of Bhagalpur are Ganga. Bhagalpur has often been referred to as Bhagaddat-Puram in ancient Sanskrit literatures such as the Ramanaya. Situated 220km east of state capital Patna and 410 km north west of Calcutta is well connected by rail and road.09. The silk industry in this city is 200 of years old and a whole clan exist that has been producing silk for .Bhagalpur is a divisional town of historical importance situated on the southern bank of the Ganga river.43.

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. This silk is of a distinct and special type. Sketch of MSMEs SOCIO-ECONOMIC CONDITION There are about 30. There is a Silk Institute and Agricultural college here. Bhagalpur is well known for its sericulture. and Engineering. The socio-economic conditions of the weavers of Bhagalpur was improving until the outbreak of communal riots in 1989 but after the riots.000 Handloom weavers found in Bhagalpur and there are about 25. Medical and homeopath colleges. Weavers history traces back to over 100 years. manufacture of silk yarn and weaving them into lovely products.generations. Silk weaving is an age-old traditional household industry of Bhagalpur. The Bhagalpur. Others took up lower income and less high-profile jobs such as tailoring or construction activity. 80% of the weavers reside in the rural sector and rest 20% resides in the urban sector. Weavers were uprooted from their place and livelihood and it severely affected the silk trade in the Bhagalpur. G. The situation remained stand still after communal riots and affected the cluster adversely.000 Handlooms in Bhagalpur. the condition of weavers became miserable and it resulted in the destruction of the famous silk industry gradually. . 85 %of the weavers are Muslims and rest 15 % belong to other communities. as well as a University. After the Bhagalpur communal riots the growth of Bhagalpur silk industry was affected a lot. Bhagalpur silk is a household name in India and the lovers of Bhagalpur Silk fabrics is found allover the India. IV. Due to this many weavers switched to handlooms to power looms. During 1941. Many weavers abandoned their looms and fled to the cities. the turnover has been reduced form 400 crores to 100 crores and triggered weaver’s migration and change of profession. 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. It is known as tussah or tusser silk.

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.Urban Country Composition 80 % of the weavers reside in the rural sector and rest 20 % resides in urban sector. Home Furnishing made ups . In fact. to improve the overall productivity in the weaving job. Education: Bihar has the lowest literacy rate of 47. And due to this reason there is decline in the silk industry of Bihar. Such work amounts to be 8% to 10 % of the total weaving job.45 % of the population belong to BPL group (Below poverty Line) . Bhagalpur one of the District of Bihar has also the lowest literacy rate. Bhagalpur one of the districts of Bihar which has a population of around 20 lacks . Mostly the backward communities from the BPL group are engaged in Handloom weaving occupation. they undertake the weaving jobs at very low rates as dictated by the chain of master weavers/ traders /Exporters. But women in the weavers family generally assist male weavers in reeling and Bobbin –filling work. since weavers do not have the sufficient education and knowledge of entire silk trade in India as well as about the exports . Most of the weavers in Bhagalpur District are mostly illiterate because of the inadequate educational infrastructure facility available in the district of . cotton.58 %. cotton work Length fabric silk. An increasing number of them have contracted tuberculosis and other malnutrition-related diseases. khadi. male weavers may not be willing to give training to their women force. Saree Home furnishing and length fabric.Moreover. 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. Saree Saree. 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. There have been no aid or rehabilitation measures from any quarters. Due to the lack of infrastructural facility available most of the people are dying of malnutrition and hunger. Dupatta. In Bhagalpur most of the silk weavers are losing their battle against the poverty. This is a thinking of male regarding their women that they should undertake the weaving job as done by the males. Shawl. There is a practice in the weavers’ community that the women are not able to do the weaving job . The are no women weavers engaged in the weaving job. 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. Health: Some of the famous silk weavers of Bhagalpur face starvation and disease. joblessness and hunger. Male /Female status: weaving is mainly dominated by male in Bhagalpur. Perhaps a separate training can be given to women force of the weavers family. Since weavers have to earn their daily wages for feeding themselves and their families. 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. Joblessness and subsequent poverty have plagued them since. There could be possibility of increasing the productivity in weaving by encouraging women for taking up the weaving job in the respective places. there is a possibility of training in the weaving job. Dupatta and length fabric. Name of the specific Area Ambabhagh and Hasnabhagh (Urban area) Puranini and surroundings 18 (villages) Nathnagar and Champanagar (Urban area) Amarpur (Village ) Maharana Hatt ( Village ) Mirjafari and surrounding village Type of the Job being done Home furnishing made ups Length fabrics.

the weavers work on the meager wages received from the master weavers. poverty and malnutrition and non availability of the weaving job regularly. Active weavers force. the weakest link is the weaver. the reason behind this is hunger.with the result the weavers change over to some other master weaver/traders/exporters. they give sometimes in advance money to the weavers. master weaver and exporter/ traders. 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. There has been practically there is no increase for the last 10 years in the wages of the . 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.giver. working capital. It is rather hurting to hear that the wages of the weaver have only raised by small percentage for the last one decade. To keep the weavers on the role of a particular wage giver in the long run. 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. Weavers Income: The income of weavers who works on job work basis earns only an average wage of Rs 30 per day per weaver. 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. Job work: Most of the weavers in Bhagalpur cluster undertake only job work of weaving from the master weavers /traders/exporters. Hence. In order to improve the productivity of the weavers. drainage systems in the Bhagalpur district and in the villages where the weavers are located are in pathetic condition. there is a need to improve these basic amenities and the living conditions of the weavers. drinking water. He does not exchange designs given by the master weavers /traders/exporters and keeps confidential as far as possible. marketing expenses etc.000 active weavers among the broad total estimate of 30. Moreover pit looms are much cheaper when compared to frame looms. In the whole chain of wage negotiation. delayed payment and such other reasons culminate into a change .: during the study of the Bhagalpur weavers. This is very common practice between the weavers. 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. Some of the weavers have switched over to the power looms and some of them have shifted to some other odd jobs. Hence they are using pit looms for weaving silk fabrics.Bhagalpur. Basic Amenities: The basic amenities like electricity. 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 . sale price realization is poor. women and weavers themselves. there are only 20. Sometimes the discontent weaver due to inadequacy of work. The weaver generally works for two or three master weavers from whom they are expecting regular and continuous weaving job. For example the average cost of frame looms is around Rs 5000 as against the Rs 1500 of the cost of the pit looms. The condition of other infrastructural facility like roads. roads and drainage system are in very poor condition in the district of Bhagalpur. There is an urgent need of providing primary and secondary educational facilities to the children. 000. Sometimes the wagegiver even revises down wards the committed weaving charges on the ground that the market condition. Weaver’s wages: In the process of negotiating wages for weavers . It is a dynamic human relationship which keeps changing both ways. There are also penalties for the defective weaving done by the weavers. it has been found that presently.

Looms Ownership No Of Looms Working Looms Looms Provided Looms Folded/ with weavers By Traders/ stacked /put others 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 75 75 0 Weavers The overall number of looms would work out to be 158 looms . there is a game play in price negotiation by the middle men like traders .46 weavers per each family.22 From the above (table Table 3) there is an weighted average of 0. Table 3.weavers. on the other hand there is reasonable increase in market prices. which means to say . master weavers etc.10 looms per each interviewed weavers.46 From the above table table 2 there is an weighted average of 2. They also blame the lack of infrastructural facility which is not available to them. Hired Weaving Workers Hired Workers Weavers 0 63 1 9 2 2 3 1 4 0 Total 75 Weighted weavers.22 hired workers per weavers . Other Observations The weavers of Bahagalpur generally blame policy maker and bad industrial policy of Bihar. 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. Weavers Survey Analysis Table no 1. 0. which denote an average of 2. 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.

.family.

61Kg Eri : 11.Table 4 .86 59 out of 75 reporting families are engaged in saree weaving.64 19.02 The weavers. Per family Table No: 6 Product made during last the three years Sari No.families reported the following yarn consumption during the last three years (Table 5) Tassar : 20.46 8.36 per family in last three years.63Kg Noel : 14.63 14.02Kg The total average consumption of the silk putting together all varieties comes to 74. ( table no : 6) . It means to say that average consumption in a year comes to 24.46Kg Others : 8. Mode of Working Mode Of Working Own yarn Job work on lab our payment Mixed Total No Of Weavers 4 68 3 75 68 out of 75 reporting weavers’ families work as job workers.78 kgs. 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 Tassar Eri Matka Noel other last three years in Kgs 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. 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 37.64Kg Matka : 19.61 11.

66 66 out of 75 weavers are undertaking the job of home furnishing fabric. 21 Total 75 Weighted average 337. 23 301 to 400 Mt.06 per weaver as shown in the table 8 Table No 9: Voluntary Closure During the Year Closure Loom Days 30 to 60 Days 61 to 90 days 91 To 120 days 121 to 150 days 151 to 180 Days Total Weighted average No Of Weavers 38 31 5 1 0 75 62.18 .) 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. the woven dress material @ 5.) No Of Weavers Nil 9 100 to 200 Mt.) No Of Weavers Nil 0 100 to 200 Mt.33 metres per weaver as shown in the table 7 Table No 8: Product made during last three years Home Furnishing fabric (Mt.Table 7: Product made during last three years Dress Material (Mt. 25 301 to 400 Mt.84 The working looms days at the disposal of the weavers family are 57670 /year (no of looms 158 * 365 days. 8 Total 75 Weighted Average 245. 19 401 to 500 Mt. 16 201 to 300 Mt. 26 401 to 500 Mt. The woven home furnishing fabric is @ 6. 3 201 to 300 Mt.14 On other hand all the 75 weavers are pursuing weaving of dress material .

000 More than 1. Table 14: Benefit from WSC Benefit Received Training Design Others Yes 52 18 15 No 23 57 60 Total 75 75 75 70 % of the weavers have undergone training from weavers center out of the total weavers of 75 (Surveyed) as shown in the table 14.000 to 75000 1 75001 to 10.25.25. 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.87%) in other words a loom was voluntary not worked for. Table 11: Earning During last one –year own Yarn. Table: 12 Earning During last one-year job work Wages Received( Rs ) Nil Up to 24. 000 per annum.this means 97 % of the weavers are working on job work basis .70 7 weavers who have been interviewed and buying their own yarn .They were force to remain close for 3963 loom days (6.000 Do not want to tell Stop Weaving Total Weighted Average Weavers (No) 2 21 26 22 2 1 1 0 75 40707 Total 73 weavers are working on job work basis .000 3 10. 25 days in a year.000 per annum for only one weaver.0001 to 1.Work Sales Proceeds Weavers (No) Nil 68 60. 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 . And a maximum average earning of 1.80.000 2 More than 2.29 % of the weaver are getting an average wages of Rs 24.000 1 Total 75 Weighted Average 9666.50.000 24001 to 48000 48001 to 72000 72001 to 96 .

10% of the adult are non –working and 39 % of them are children. 11% of the adult are non –working . Alone 20 Traders Alone 7 None 2 Govt. 40 % of the adults are working. 51% of the adult are working. 27 % of the weavers feel that the government alone is responsible .) Table 16: Plan to move to other occupation Plans to move to other occupation Yes No Do not Know Total No of weavers 8 67 0 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. From the female category . As shown in the table 18. As shown in the table 18 . 49 % of them are children. as shown in the table 17 Table 18 : Family AdultAdult NonTotal working working Children Male 235 68 289 592 Female 292 59 226 577 Total 527 127 515 1169 From the Male category. 43 Govt. 9% of the weavers feel that the traders alone responsible .Table 15 : Future Of Handloom Weaving Occupation (No Of Weavers ) Future Weavers Bright Bleak Do Not Know 38 27 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. 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.

Some comments of the weavers: 1 2 3 4 No timely payment of the wages Government should help them in marketing No option available for shifting to any other work 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.Table 19: Assets Premises No of weavers Own Hired Total 75 0 75 100 % of the weavers have their small huts and tiled /Sheeted roof houses. Tassar × Matka. The prices of other qualities like Tassar × Dupion. Matka × Noel. Tassar × Ghicha lie between the maximum and minimum prices as indicated above. and the highest price of Rs 243 per metre of Matka × Matka quality. 2 All of them have undergone short duration training courses in designing from the weavers service center Bhagalpur . Indicative quality wise yarn price : .per metre . it can be seen that the lowest price of Tassar × Tassar quality is Rs 160. 3 None of the 4 designers is aware of success or failure of their designs . Analysis of Business Operations Price v/s fabric quality variation bar graph 225 228 243 160 190 166 Tassar* Matka Price/m Matka * Matka 300 250 200 150 100 50 0 Tassar* Dupion Price/m Price V/s Fabric Quality Variation Quality of the Fabric From the above bar graph . 4 None of the 4 designers have met designers from other cities /institutions . V.

4 PS ANALYSIS 1. tassar lie between the maximum and minimum as indicated above. matka. it can be seen that products are one of the important factor influencing cluster marketing strategies. And the highest quality is of Eri at Rs Rs 2000 per Kg. Mulberry. The yarn qualities of Tassar. Some of the important product proposed to manufacture in Bhagalpur cluster are : . The prices of other yarn quality like Chinese. Katya. dupion ghicha. Matka and Dupion amounts to the share of 70 % of the total consumption and the share of the remaining qualities amounting to balance 30 %. Product : From the above 4 ps diagram .n Price/Kg Li ne ch a Er i G hi hi n C M at ka 2500 20001600 1600 2000 16001300 1400 1500 1200 850 1000 400 500 0 es e Price per Kg quality wise Indicative yarn prices Quality of yarn It can be seen from the above bar graph the lowest price of the yarn quality is of Linen at Rs 400 per Kg.

Some of them could be with Dobby design. Apart from Nalli sarees. 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. 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 . and Banaras silk sarees and Murshidabad ( Bengal ) are also being sold in the domestic market. . 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 . Even in the SAARC countries the Indian quality saris are accepted as they are. Of late. 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. the handloom silk sarees from Kanchivaram (Tamil Nadu) and Dharamavaram (A. Napkins.P) . Accordingly. Sarees : In case of silk sarees there is a growing demand in the domestic market for silk sarees in the higher income market segment. even the higher income layer of the middle class consumers are going in for such high priced silk sarees.  Cushion Covers  Curtains  Saree  Salwar Suits  Bed Sheets  Throws  Shawls  KurtaPyjama  Scarves  Table Covers. 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 . Other silk sarees from Kanchipuram are being sold mainly with border dyed or zaried along the borders. Usually the gram age of the fabric varies from 70 GSM to 250 Depending on the GSM the weight of the sarees also varies. Design: In India very few branded sarees are sold similar to that of jacquarde design of Nalli brand quality. 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. Runners  Domestic Turnover (In Laks) Estimated Turnover 100 200 500 End of the financial year 2007-08 2008-09 2009-10 It can be seen from the above table . Silk Dress material. Quality of Sarees t varies depending on the size of the yarn . the price of the srees also grows up with the overall weight of the saris.

Usually in India. Mud printing and offset printing. Bar code markings along with brand name to be printed on the polythene sheets used for packing the sarees.out of the total market 20 % of the higher income segment consumers will go for silk suits. 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 . 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. In the recent past several large retail showrooms like Life style. Various other designs can also be produce by embroidery work with computerized embroidery. power loom sector. block printing. The brand name stickers can also be put on the sarees. by Sea and by Air. In Bhgalpur cluster in our CFC we are proposing embroidery design center consisting of sewing machines and hand embroidery facilities. the Jaquarde and Dobby weaving is commonly weaved in the fabric itself. The brand name stickers can also be put on the suits . sewing machine embroidery and hand embroidery. west side etc have come up in the country. The suit material and ready made suit can also be exported to neighboring SAARC. by Sea and by Air. Middle East countries. One can create various designs by printing over the fabric. 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. Generally Indians silk suits are folded and kept in the low quality polythene bags and packed in low quality cotton and wooden boxes. Quality of silk suits: The quality of the silk suits depends on the count of the yarn and gram age of the silk fabric. In case of suit material the main competition in the domestic market is from mill made sector. Generally Indians silk sarees are folded and kept in the low quality polythene bags and packed in low quality cotton and wooden boxes. Some of the popular printing methods are screen printing. there are several branded and unbranded suits and suit fabric being sold in the domestic market. Sizes : Normal Indian sizes of sarees varies from 5to 6 meters in length and around 1 metre in width . Presently.Packaging: The packaging of silk sarees in India is not up to the mark as compare to the standard of packaging at international level. 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 . Hence relatively there is a large potential domestic market. Packaging: The packaging of silk suits in India is not up to the mark as compare to the standard of packaging at international level. 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. Bar code markings along with brand name to be printed on the polythene sheets used for packing the silk suits.

Design of Home furnishing made ups: in case of Home furnishing made up the Design aspect is very important from the angle of consumer. Usually. And when they are made as readymade garments the normal sizes of small. Packaging: packaging of home furnishing made ups comprises of polythene. Dobby etc. the made up are checked for the quality of stitching. between 30 t0 34 chest size are called medium and than 34-40 in chest size are called large. These showrooms are opened in other cities of our country. Dyeing and printing quality in terms of color fastness . 180*220 cm . their in turn placed in a good quality 7/9 ply cartons. Maspar etc . For example in the city of Delhi. sofa covers. The designing can be made at the level of weaving fabric by using the techniques of Jacquard. The latest design can also be produced by value addition in dyeing. 18*18”. table covers etc are being sold through large retail showrooms through out the country.Size: The suit length varies from 5 to 5 and half meter in India. medium. Finally. Bombay Dyeing.250*250 cm . large and extra large have standard dimensions. Cushion covers. Curtains. 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 . home Furnishing made ups like Bed sheets . Shyam Ahuja. printing and embroidery work. fabric stage and at the end product of the readymade garments . The quality is checked in terms of parameters like count of the yarn. We are proposing the design centre with the above facilities to be set up at CFC of Bhgalpur cluster. about 40 inch size chest they are called extra large. Some times the brand tags is also attached with the product. 24*24” 120*180 cm . wrapping and enclosing the various made ups in the good quality LDP / HDP qualities. Size Made Ups Cushion Covers Bed Shets Usual sizes 12*12 “. GSM of the fabrics . 220* 220 cm . 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 . 16*16”. sizes etc. 22*22”. 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 . 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. The bar code instructions and labeling instructions from the buyer are also arranged on the product or polythene bags as per buyers’ requirements. Home Furnishing made ups also faces competition from the mill made sector like Vimal. Shamken etc and made ups from power looms sectors. 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. we have very good Showrooms of Home Furnishing like Life Style. Seasons . usually blow 13 inch chest size are called small size. After packing the made ups in polythene bags. Jag dish .

A. dealers and distributors while making the sale price list the factors like total cost of the product. 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.  Table Covers. Export sales would be promoted by appointing specialized overseas business promotion agents in the selected countries like U. 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. producing and exporting around 50 crores of turnovers which amounts to 12. 5. By creating new design with the help of qualified designer in order to increase the sales in the domestic as well as international market. 2. 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. 6.P terms. 4. Participation in the domestic exhibitions at various levels of district. count of the yarn and value addition work. Participation in the international exhibitions for promotion of export silks. D. Germany. Appointment of the selected overseas agents in the selected overseas countries. 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. suits and home furnishing made ups and the final price list is to be made for the use of consumer. 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 . France.. 135*150cm. 3. Export Marketing: The total India’s Handloom product exports including fabrics is around 4000 crores. states and national. Appointing local distributors/dealers/retailers for the promotion of sales in the domestic market. Price The prices are to be worked out for each product of Sarees.125*125cm.5%. Australia. the Bhagalpur cluster presently.A. 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. 3. U.S. 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. Japan and other European Union countries. Curtains 3*6  Throws 50*60 “. Out of the total Handloom exports silk fabrics and made ups contribute a share of around 40 % of total export of 1600 crores. 1. D. .K. Participation in the buyers’ seller meets in domestic market as well as international market. 2. Out of the total 1600 crores silk and silk products exports from India. 100*100cm.

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 b. Metro cities of Kolkata and New Delhi can be explored as the initial sales exploration sales location. 1. District Industry Centre (DIC . Delhi and Kolkata 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. Australia. 8. 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. c. and fabrics. Weavers service centre (GOI): The weaver’s service centre at Bhagalpur was set up in the year 1974 for the development of Handloom silk industry in the state of Bihar. Exporters at Bhagalpur. Patna .Govt. As envisaged in the action plan we propose to create permanent infrastructure for showrooms at Bhagalpur . e. and Non. counts and strength of yarns. d. Designers at Bhagalpur. Japan and other European Union countries. 5. Weavers service centre (GOI) 2. 7. Germany. Many training progammes are organized at Bhagalpur to develop awareness among the Handloom silk weavers of Bhagalpur. For promoting export sales. encouragement and support for the export of Handloom silk of Bhagalpur abroad.A.K. U. Directorate of Handlooms (Industries Department. 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. Central silk Board : The main objective of central silk board is to promote the development . It also provides assistance to solve different textile industry’s related problems by interacting with various Govt. Appointments of specialized overseas agents in U. By creating a very good website with the details of the product and prices the sales through internet can be promoted. Kolkata and New Delhi 6. Financial Institution. analysis of blended yarns and fabrics.7. GOB) : 3. Central Silk Board. 1. 1 Lead Bank 2 Co-operative Banks 3 NABARD 1. organizations. France. Indian Silk Export promotion Council. Places a. GOB) 4.S. Since Bhgalpur is situated 220km east of state capital of Bihar the markets like Patna. The weaver’s service centre of Bhagalpur have different facilities for analyzing fabric construction .

There si no branch of Indian silk Export promotion council at Bhagalpur. CSB is not contributing any training or any other activity to promote the Handloom silk industry . Development. exhibition of handlooms silk made by the weavers of Bhagalpur.E in silk technology and textile technology.and growth of sericulture and handloom silk industry . The overall condition of the institute is pathetic. 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. The role of banks for providing financial assistance to the Weavers of Bhagalpur is nominal.Pyjama 8 Cushion Covers 9 Bed Sheets 10 Shawls 11 Scarves 12 Curtains 13 Throws . The main work of Indian silk Export Promotion Council is to promote the right contact in silk business abroad. But at the Bhagalpur . It also provides assistance. 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. Bihar institute of silk and Textile Bhagalpur : The institute offer 4 years of B. support and backing for the Research. Extension and training to the weavers of Handloom Silk. Punjab National Bank. and also undertakes directly as well as jointly with the state sericulture departments. The Bhagalpur central Co-operative bank has given 25 credit cards to Individual weavers in puraini village of Bhgalpur. There has been no financial assistance given to the weavers by NABARD. Bhagalpur Central Co-operative Bank Limited and NABARD. This department is not active in providing any assistance to handloom silk industry . It was suppose to organize various fairs. It organizes buyer and seller meets for the silk products. It helps in the participation in international textile fairs. 5 Saree 6 Salwar Suits 7 Kurta. Supply chain and value proposition Analysis Economics and cost data of typical products being manufactured by Bhagalpur weavers 4 Silk Dress material. They are presently assisting power loom sector. There are about 70 staff and 30 students in the Bihar Institute of silk and textile Bhagalpur. Besides. Presently there is no contribution or assistance to the Bhagalpur Handloom silk Industry from this institute. the CSB organizes production and supply of quality silkworm seed. the implementation of various sericulture projects. Indian Silk Export Promotion Council: The main objective of Indian silk export promotion council is the promotion of silk export from India. mulberry and tassar cuttings etc. State Bank of India. Central Bank of India. They have also given 1 lack cash credit facility to Puraini weaver’s co-operative society. 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).

Finishing. Napkins. it can be seen the costing of Tassar Silk saree from the stage of silk yarn then going through the process of dyeing. 3. and finally reaches retailer as shown in the above diagram.14 Table Covers. The Finally packed saree would go to Master weaver/ trader and then passes to distributor /dealer . From the above diagram . The price mark ups at each stage are shown in the above diagram up to the consumer level. And then retailers sells the sarees to the ultimate consumer. Trader/Master /Master Trader Weaver (7%ofof Weaver (7% Rs1103)==Rs Rs Rs1103) 77 77 Distributor/ Distributor/ Dealer Dealer (10%%ofof (10 Rs1180) Rs1180) Rs118 ==Rs118 Retailer Retailer (20%ofof (20% Rs1298 Rs1298 Rs259 )=)=Rs259 qualities of silk fabric with which sarees can be weaved : Tassar × Matka Tassar × Dupion Tassar × Noel Matka × Noel Matka × Matka Price range will vary from Minimum of 1500 / saree to 3000. 5. Fabrics (Matka * Noel . dry cleaning and packing . 183/m) GSM 270 . Runners Value chain Analysis for Bhagalpur silk sarees (Tassar × Tassar 80 GSM including Blouse total length 6. 2. 4. weaving .) Dry DryCleaning Cleaning And packing And packing 30 30Rs Rsper per saree saree Finishing Finishing 20 20Rs Rsper per saree saree Weaving Weaving250 250 Rs per saree Rs per saree Dyeing Dyeing(pallu) (pallu) 100 100gms gmsyarn yarn dyeing @ 30 dyeing @ 30 Rs Rsper perkg kg ==33 Silk SilkYarn: Yarn:500 500 gms @ gms @ 1600/kg 1600/kg== Rs Rs 800 800 80 80GSM GSM Other 1.25 metre.

Home Furnishing Made ups. 250 GSM .50 43. it can be seen the costing of Matka *Noel silk fabric from the stage of silk yarn then going through the process of dyeing.50 Finalprice price=Rs =Rs Matka Mill 251per metre Matka Mill 251per metre Made Made130 130gm gm @Rs @Rs700 700/Kg /Kg =Rs =Rs91 91 Total =Rs 135 From the=Rs above Total 135diagram. Cushion covers . weaving .Dry DryCleaning Cleaning and and packing=Rs packing=Rs10 10 Master Master Weaver Weaver (5%ofof (5% Rs177)=Rs9 Rs177)=Rs9 Finishing FinishingRs Rs 55 per permetre metre Weaving Weaving@ @ 16 16Rs Rsper per metre metre=Rs =Rs16 16 Dyeing Dyeing270 270 gm gm@30 @30Rs Rs per Kg = Rs per Kg = Rs 11 11 Exporter Exporter 10% 10%ofofRs186 Rs186 ==Rs19 Rs19 Trader Trader 10% 10% ofof 186=Rs19 Rs19 186= Distributor/Dealer Distributor/Dealer 10%ofofRs Rs205=21 205=21 10% Silk Silkyarn yarn Noel Retailer Noel:140gm :140gm Retailer20% 20%ofofRs Rs @Rs 310 per 226=Rs @Rs 310 per 226=Rs45 45 kg Final kg=Rs =Rs43. Matka × Matka Dry Cleaning and packing Rs 15 per piece Finishing Rs 5 per piece Master Weaver (7% of Rs 189 = Rs 13 . 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. Finishing.

Stitching Rs 15 per piece Exporter 20 % of 202= Rs 40 FOB price = Rs242 Or US$ =5. dry cleaning and packing .5 per piece Weaving Rs 8 per piece @Rs 16/m Dyeing Rs 2 per piece @ Rs 30 per Kg Silk yarn 125 gm @Rs 1200 per kg =Rs 144 From the above diagram . when compared to . Finishing. Generally the FOB price of particular made ups is less by 3 to 4 times international retail price. stitching.. The price mark ups at each stage are shown in the above diagram up to the consumer level. (Cushin covers) from the stage of silk yarn then going through the process of dyeing. The Finally packed saree would go to Master weaver/ trader and then passes to distributor /dealer . it can be seen the costing of home furnishing made up . and finally reaches to the exporters. weaving .

The price mark ups at each stage are shown in the above diagram up to the consumer level.) Pre-Intervention DryCleaning Cleaningand and Dry packing Rs 30 packing Rs 30 persuit suit@ @Rs Rs66 per per metre per metre Trader/Master Trader/Master weaver Rs979 979ofof weaver Rs =Rs69 69 77%%=Rs DryCleaning Cleaningand and Dry packing packing Rs 15per perpiece piece Rs 15 Distributor/Dealer Distributor/Dealer Rs1048 1048ofof10 10%% Rs 105 ==105 Finishing Rs Rs25 25 Finishing persuit suit@ @Rs Rs55 per per meter per meter Retailer=rs =rs1153 1153 Retailer of 20 % = Rs 231 of 20 % = Rs 231 Weaving @ @ Weaving 20 /m = Rs 100 20 /m = Rs 100 ConsumerPrice= Price= Consumer Rs1384 1384 Rs Yarndyeing dyeingRs Rs Yarn 13. dry cleaning and packing . The Finally packed suit would go to Master weaver/ trader and then passes to distributor /dealer . Lengrh 5 metre. . weaving . Tassar × Dupion . And then retailers sells the suit to the ultimate consumer. it can be seen the costing of silk suit from the stage of silk yarn then going through the process of dyeing.50 per suit @ Rs30 30per perKg Kg Rs Silkyarn yarn==450 450 Silk gram(weight) (weight)@ @ gram 1800 /kg =Rs 1800 /kg =Rs 810 From810 the above diagram .Suit length ( 90 GSM . Finishing. and finally reaches retailer as shown in the above diagram.50 per suit @ 13.

25per persuit suit@ @Rs Rs 11.) Post -Intervention DryCleaning Cleaningand and Dry packing Rs 30 per packing Rs 30 per suit @ Rs 6 per suit @ Rs 6 per metre metre Trader/Master Trader/Master weaver Rs860 860ofof77 weaver Rs % =Rs 60 % =Rs 60 DryCleaning Cleaningand and Dry packing packing Rs15 15per perpiece piece Rs Distributor/DealerRs Rs Distributor/Dealer 920 of 10 % = 90 920 of 10 % = 90 Finishing Rs Rs25 25per per Finishing suit@ @Rs Rs55per per suit meter meter Weaving @ @20 20/m /m== Weaving Rs 100 Rs 100 Yarndyeing dyeingRs Rs Yarn 11.25 25 per Kg 25 per Kg Silkyarn yarn==450 450gram gram Silk (weight)@ @1600 1600/kg /kg (weight) =Rs 720 =Rs 720 Retailer=Rs =Rs1010 1010ofof Retailer 20 % = Rs 200 20 % = Rs 200 ConsumerPrice= Price=Rs Rs Consumer 1210 1210 . Tassar × Dupion . Lengrh 5 metre.Suit length ( 90 GSM .

 Availability of skilled Handloom weavers.  Lack of latest design availability for value additional products.  Irregular work for weavers.  Very large Indian market for branded silk products as the present high growth of retail sales in India Weakness  Highly unorganized Cluster. Sign wave diagram of SWOT Analysis .  Costlier products can only affordable by higher income group.VII. Kolkata. patna.  Lack of upgraded and improved Technology.  Inadequate infrastructural Facilities at Bhagalpur.  Product diversification like that of home furnishing value added made ups. SWOT Analysis Strength  Traditional preference for silk saris by the higher income group.  Unavailability of raw materials like cocoons.  weavers are day by day taking up other profession due to inadequate weaving job and wages.  High demand of value added handloom silk sarees in metro cities like New Delhi.  Lack of strong market network for domestic as well as international market. and yarns at reasonable prices.  Low credit from financial  Lack of printing and dying facilities . Threat  Biggest threat from the power loom sector  Threat from silk products from china and Mulberry silk products from Karnataka and other southern states. 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.

to bridge the gaps in the area of technology . 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. Strengthening and Developing MCFs: The specialist from the respective areas of printing. printing facilities.) 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.VIII. sampling and design centre. Each of these 5-6 MCFswill be trained by the specialist from the respective areas like dying. stitching and fabrication. social intervention and group coordination. We would select 25 weavers from the grass root weavers. finishing and packaging and labeling. improved frame looms. The proposed common facility centre comprises of raw material bank. 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. lead bank . Further Mcfs would be divided into four functional small groups of 5-6 persons from among 25 selected weavers.) from the grass root level of 5000 weavers. BDS programme: MCFs would be thought regarding various Business Development Services . improved dying facilities. NABARD. embroidery section. Supply Side Identification of MCFs: In the supply side the first step is the identification and the selection of the MCFs (Master Community Facilitator. 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. dyeing. one is the Supply side. 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 . 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. business information centre including domestic and Export marketing activities. social intervention and group coordination. the other is the Demand side. However the detailed structure and composition of the CFC would be discussed separately under the chapter of vision. printing. 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. marketing. SIDBI in order to get their micro-financing for purchase of raw material . printing. working capital and for marketing activities. social intervention and group coordination will be deputed to Bhagalpur for arranging training and coaching of MCFs (Master community Facilitator. capacity building and institutional development.

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. . 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. and Bangalore.like lime materials as well as associated accessories. Monthly performance and sales results would be monitored by ASEED from second year onwards (2007-08). Mumbai. in different places as indicated in the action plan in order to establish the Brand image of the Bagalpur cluster and to organize sales. trims etc. 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. 3 To identify major silk home furnishing overseas buyers and to contact them for export orders. 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.A..K. To participate in buyer-seller meet in the selected places as mentioned in the action plan. It is proposed to participate in domestic exhibitions.so that they are organized for efficient execution of domestic or export orders. 2 To contact and introduce Bhgalpur cluster to all the buying agents located in New Delhi. 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. France. Australia. Japan and other European countries. Export turnover (In Laks) Estimated Turnover 50 100 300 End of the financial year 2007-08 2008-09 2009-10 Strategy for Export marketing 1 Appointment of specialized overseas agents in the major international markets like Germany. U.S. 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. Domestic Turnover (In Laks) Estimated Turnover 100 200 500 2 3 4 5 End of the financial year 2007-08 2008-09 2009-10 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. U.

PROPOSED STRUCTURE AND COMPOSITION OF CFC Chartered Accountant/Tax Consultant Raw Material Bank. TieDie 500 kg per Day Sampling and Designing Centre -25 sewing machines Weavers Service Centre Clusters weavers …… Traders Marketing Consultants Weaving Centre Improved -100 Looms (jacquard/ Dobby/plain) Finishing and packing centre Exporters Banks/SIDBI/ NABARD National Level fashion Designers Embroidery Centre -10 M/c Printing Centre screen. . mud printing Business service Centre – MIS. Capacity Building and Institutional Development . Marketing. Chamber Dyeing. procurement etc Direct marketing Channel Distributor/Dealers/retail ers Handloom Directorate (State Govt Indian silk Export Promotion Council Handloom Export promotion council . Yarn 100 MT Dyeing Centre Water softening plant.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. Cocoons. Marketing. Block.

Bhagalpur .24 3. This is a much better paid by other master weavers.64 2. 125 per day/family. 000 per year. Banka 5. The benefits: Workshee t ID Card weaver of Puraini weaver’s cooperative society availed of the following Nil Nil Health Nil Insuranc e Loan 25 10 Credit 40 Other Nil Card 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.94 Wage Payment to weavers 1. WSC Bhagalpur had given them training in weaving as well as in designing through local designers. 3. 24000 per annum.39 0. However it is reported that weavers are earning minimum wage of 18000 per year and maximum 30. A weaver family comprising of three members gets only Rs.31 Profit/Loss (Rs. This means that the wages being paid by puraini are higher by 28% which is average reasonable.O : Dariyapur. Other noteworthy cooperative societies operating in Bhagalpur cluster area re as follows: 1. The Champanagar Tanti primary weaver’s co-opative society ltd. 4. the sahebganj primary weavers cooperative society ltd. Dumrama primary weavers cooperative society Ltd.39 0. Moh: Sahebganj. However Bhagalpur does not have any printing facility except there was few attempts for developing printing facility at the weavers Service Centre. Bhagaqlpur.20 During the year 2004. Village P. The average wage of the weavers in the society works out to be Rs.. Bhagalpur. Moh. some of them are taking of weaving job form other cooperative societies and traders.28 0. WEAVERFTCO : Bhagalpur proper 2.05 they have booked better performance due to the opportunity of booking the orders form Delhi Haat and other market. 90 per day s wages direct form the master weavers where as the weavers family form purini society get wages of Rs. In Lac) 0. 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.Champanagar Bhagalpur. Since all the member weavers of 289 strength cannot be engaged by them. Daryapur primary weavers cooperative society ltd. Dumrama .Year Sales Turnover 2004-05 2003-04 2002-03 15.75 0.