Term Paper

On
Business Environment
Topic: Handicrafts: - PESTLE Analysis

Submitted To: Submitted By:

Mrs. MANEET KOUR PRIYA KAPIL
MBA I – LIM
RT1901A-14
R.N.-10902091
Date: 10/12/2009
 ACKNOWLEDGEMENT

No serious and lasting achievement or success one ever achieves without the
friendly guidance and co-operation of so many people involved in work.
Foremost of all, I express my gratitude to the Almighty for his blessings and for
vesting wisdom in all my wishes.
I am also thankful to my Subject Teacher Miss Maneet kaur, who has helped me
a lot each and every time when I had some difficulty. Words are not sufficient to
register my sincere regards to my loving parents for their deep affection and
unabated inspiration that really kept me going. They were and unending source of
strength and perseverance during the course of the study. I place my thanks to all
those who spared their time and made it convenient for me to complete the
research. I deeply acknowledge their concern for my research. Last but not the
least, I also wish to red cord my gratitude for any person(s), my memory has failed
to recall, who rendered his/her/their support and services.

Yours faithfully

(Priya Kapil)
 TABLE OF CONTENTS

S.No. Particulars Page No.

(A) Concept of Handicraft in India 4-6

(B) Introduction and Definition of 7-8

Handicraft

(C) Importance of Handicrafts 8-9

(D) Industry Analysis 9

(E) Key role of Handy crafts Industry 9-10

(F) Classification of Handicrafts 10-1i

Industry

(G) Swot Analysis of Handicrafts 11-15

Industry

(H) Role in Indian Economy 16-19

(I) Objective of the survey 19-24

(J) Pastle Analysis of Handicraft 25-26

Industry

(K) Conclusion 26

Bibliography 27

CONCEPT OF HANDI CRAFTS INDUSTRY:

The concept of Indian Handicrafts has emerged from one of the oldest civilizations
called the Harappa Civilization and the Indus Valley Civilization. The exclusive
items carved by the India Handicraft Industry comprise of vast cultural and ethnic
diversity that has imbibed an array of unique themes, techniques, and crafts. India
Handicraft Industry has been globally popularized as the rich and cultural heritage
of India for its unique appeal. Handicrafts of India use brass, metal, wood, stone,
and beads to carve its products ranging from masterpieces to plain household
items.

Paintings, furniture, sculptures, artificial jewelry, animal figures, figurines of

deities and idols, baskets, and many more items have been complimented as the
pride of India.

Besides, trading in the local markets, Indian handicrafts are also exported across
the globe. Each work of art reflects the adroitness and emotions of the craftsmen
which have made the work more close to heart apart from being an exclusive show
piece.

India is one of the important suppliers of handicrafts to the world market. The
Indian handicrafts industry is highly labor intensive cottage based industry and
decentralized, being spread all over the country in rural and urban areas.
Numerous artisans are engaged in crafts work on part-time basis. The industry
provides employment to over six million artisans (including those in carpet trade),
which include a large number of women and people belonging to the weaker
sections of the society.

INTRODUCTION:-
Handicrafts are unique expressions and represent a culture, tradition and heritage
of a country. The Handicraft Industry is one of the important productive sectors.
Various attempts have been made to define this broad and diversified industry. The
following definition strives to cover diversity and complexity of Handicraft
Industry.

DEFINTION:

According to United Nations Educational, Scientific and Cultural

Organization/Information Technology Community (UNESCO/ITC) International
Symposium on “Crafts and the International Market: Trade and Customs
Codification”, Manila, Philippines, October 1997:

Handicrafts can be defined as products which are produced either completely by

hand or with the help of tools. Mechanical tools may be used as long as the direct
manual contribution of the artisan remains the most substantial component of the
finished product. Handicrafts are made from raw materials and can be produced in
unlimited numbers. Such products can be utilitarian, aesthetic, artistic, creative,
culturally attached, decorative, functional, traditional, religiously and socially
symbolic and significant.

According to Govt. of India:

Handicraft can be defined, which is made by hand; should have some artistic
value; they may or may not have functional utility.

Importance of Handicrafts:
 • The Cultural Importance: Handicrafts play very important role in
representing the culture and traditions of any country or region. Handicrafts
are a substantial medium to preserve of rich traditional art, heritage and
culture, traditional skills and talents which are associated with people’s
lifestyle and history.

• The Economic Importance: Handicrafts are hugely important in terms of

economic development. They provide ample opportunities for employment
even with low capital investments and become a prominent medium for
foreign earnings.

In addition to the high potential for employment, the sector is economically

important from the point of low capital investment, high ratio of value addition,
and high potential for export and foreign exchange earnings for the country. The
export earnings from Indian handicrafts industry for the period 1998-99 amounted
to US$ 1.2 billion.

Although exports of handicrafts appear to be sizeable, India’s share in world

imports is miniscule. It is a sector that is still not completely explored from the
point of view of hidden potential areas. India, a country with 26 states and 18
languages and more than 1500 dialects offers an enormous range of handicrafts
from each of the states. Major centers in Uttar Pradesh are Moradabad also known
as the "Petal nagari" (City of Brass), Saharanpur for its wooden articles,
Firozabad for Glass. The North Western state of Rajasthan has to offer the famous
Jaipuri quilts, Bagru and Sanganer printed textiles and wooden and wrought
iron furniture from Jodhpur. The coastal state of Gujarat comes with
embroidered articles from Kutch. Narsapur in Andhra Pradesh is famous for its
Lace and Lace goods. But this is only a small part of the total product range. India
offers much more.

Industry Analysis

India is a country of rich culture, history and traditions. India is one of the
major producer and supplier of Handicrafts products in the world. India has
been major producer and supplier of handicrafts products since very long time.
Before the industrial development, this art and industry was a potential
economic advantage for the country.

During recent years, the importance of handicrafts has been surged due to their
cultural and financial values. The small-scale industries including handicrafts
can play a major role in the development of the economy of both developed
and the developing countries equally. The 90-95% of the total industrial
products of the world is produced in small workshops run by less than 100
people. For instance, Japan, which is at the peak of the economic
development, has considered 84% of its industries as small and medium scale
industries. In countries such as India and China, handicrafts are as high as the
mechanized products in quality and volume, and are a major source of their
foreign earnings. These countries are focusing on the development of
handicraft industry, in order to strengthen the economy.

The Indian handicrafts industry is highly labour intensive, cottage based and
decentralized industry. The industry is spread all over the country mainly in
rural and urban areas. Most of the manufacturing units are located in rural and
small towns, and there is huge market potential in all Indian cities and abroad.
Handicraft industry is a major source of income for rural communities
 employing over six million artisans including a large number of women and
people belonging to the weaker sections of the society.

The Handicraft sector is highly creative sector and produces large variety of
crafts products. This industry is localized segment of the domestic and
international market. In India the production of craft products are done on both
large and small scale. Because of low capital investment people can start their
business on small scale. Through this flexibility the demand and supply can be
managed Hough Indian Handicraft industry is considered a cottage industry,
but it has evolved as one of the major revenue generator over the years. There
has been consistent growth of 15% over few years and the industry has
evolved as one of the major contributor for export and foreign revenue
generation.

There is huge demand for the Indian Handicraft products in both national and
international market. To match the demand and supply with quality, there is need
to have greater technological support and innovativeness with the uniqueness in
industry.

Key Facts of Indian Handicrafts Industry:-

• India’s rich cultural diversity and heritage provides a unique and huge
resource for developing craft products.

• The Indian Handicraft Industry is showing continuous growth rate of 15%

every year.

• Handicrafts industry is one of the important segments of decentralized sector

in India.
• Major parts of industry operates in rural and semi urban areas throughout the
country and has potential Indian and International market with around 67000
exporters to tap the market.

• According to the national census of handicrafts, undertaken by the National

Council for Applied Economic Research the value of handicrafts produced
last year were of Rs 26, 213 Crores.

• This Industry provides huge employment opportunities to artisans that

include women and people belonging to backward and weaker society. This
is one of the major sources of income there.

• India’s contribution in world market is 1.2%

• The total exports of crafts items: - Rs. 134129.2 millions.

• Industry’s share in India's exports:- 1.51 %

• In spite of having diversified products, some part of Indian market are still
untapped and market is price sensitive.

• Products are high priced in big and metro cities, which are beyond, reach of
people belonging middle and lower middle class.

• Craft producers have to compete on price, quality and delivery for different
segments.

• There is poor promotion for craft products in national market.

• There is lack of awareness about new traditions and among craftsmen and
there is need of technological support and training.
Handicrafts are classified into several categories:

Handicrafts industry comprises diversified products portfolio and there is large

variety available in market. Handicrafts products can be distinguished into
following:

Metal ware, Wood ware, Hand printed textiles, Embroidered and crocheted goods,
Shawls, Carpets, Bamboo products, Zari goods, Imitation jewellery, Paintings,
Earthenware, Jute products, Marble Sculpture, Bronze Sculpture, Leather Products
and other (are u going to produce all these ) miscellaneous handicrafts.

Textile based handicrafts:

Hand printed textiles including block and screen printing, batik, kalamkari (hand
printing by pen) and bandhani (tie and die) are used in products ranging from bed-
covers to sheets, dress material to upholstery and tapestry. The famous
embroidered articles of silk and cotton often embellished with mirrors, shells,
beads, and metallic pieces are also found in India. Embroidery is done too on
leather, felt and velvet etc. .

Woodwork:

Wooden articles in India range from the ornately carved to the absolutely simple.
One can find toys, furniture, decorative articles, etc. bearing the art and
individuality of the craftsman. India is known particularly for its lacquered wood
articles.

Stone Craft:
The intricately carved stoneware made of marble, alabaster or soapstone, etc.,
inlaid with semiprecious stones carry on the heritage of Indian stone crafts.

Glass and Ceramic:

Glass and ceramic products are a fast upcoming segment in the handicrafts from
India. The age-old production process of mouth-blowing the glass instills a
nostalgic feeling. The varied shapes of ceramic and glass in a number of colours,
would appeal to Western aesthetics while retaining the Indian touch.

SWOT Analysis

Strengths:

• Large, diversified and potential market.

• There is large product variety and range is available because of diversified
culture.
• It has strong, diversified and supportive retail infrastructure.
• Diversified product range that service different market.
• Cheap labour rates that result to competitive price.
• Need low capital investment.
• There is flexible production flexibility.
• Low barriers of new entry.
• Easy creation and development of production centres.
• There is no need for macro-investment.
• Industry provides potential sources of employment.
• Products are high value added, and handicrafts have various applications.
• It is the potential source of foreign revenue because of higher export.
Weaknesses:
 • Lack of infrastructure and communication facilities.
• Unawareness about international requirements and market.
• Lack of co-ordination between government bodies and private players.
• Inadequate information of new technology.
• Inadequate information of current market trends.
• Less interest of young people in craft industry.
• Lack of skilled labour.
• Still confined to rural areas and small cities and untapped market.
• Lack of promotion of products.

Opportunities:

• Rising demand for handicraft products in developed countries such as USA,

Canada, Britain, France, Germany, Italy etc.
• Developing fashion industry requires handicrafts products.
• Development of sectors like Retail, Real Estate that offers great
requirements of handicrafts products.
• Development of domestic and international tourism sector.
• E-Commerce and Internet are emerged as promissory distribution channels
to market and sell the craft products.
Threats:

• Competition in domestic market.

• Quality products produced by competing countries like China, South Africa.
• Better Trade terms offered by competing countries.
• Increased and better technological support and R and D facility in competing
countries.
Centres:

Artmetalware :

Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Rewari, Thanjavur, Madras,

Mandap, Beedar, Kerala & Jagadhari, Jaselmer

Wooden Art wares:

Saharanpur, Nagina, Hoshiarpor, Srinagar, Amritsar, Jaipur, Jodhpur, Jagdalpur,

Bangalore, Mysore, Chennapatna, Madras, Kerala & Behrampur (WB)

Handprinted Textiles & Scarves:

Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru & Sanganer

Embroidered goods:

Kutch (Gujarat), Jaisaimer, Baroda, Lucknow, Jodhpur, Agra, Amritsar, Kullu,

Dharmshala / Chamba & Srinagar

Marble & Soft Stone Crafts : Agra, Madras, Baster, Jodhpur

Papier Mache Crafts : Kashmir, Jaipur

Terracotta : Agra, Madras, Baster, Jodhpur

Zari & Zari Goods : Rajasthan, Madras, Baster

Imitation Jewellery: Delhi, Moradabad, Sambhal, Jaipur, Kohima

(Tribal)

Artistic Leather Goods: lndore, Kolhapur, Shanti Niketan (WB)

Selected crafts pockets for achieving export goal:

Although each crafts pockets has its particular problems, a few selected craft
pockets are identified based on their past performance for immediate remedial
attention to stimulate a quantum in exports of handicrafts in the coming years.

Moradabad (UP) : For Artmetalwares and imitation jewellery

Saharanpur (UP) : For Wooden handicrafts & Wrought iron handicrafts

Jodhpur (Raj.) : For Wooden, Wrought Iron and Sea Shell handicrafts

Narsapur (A.P.) : For Lace and Lace goods

COUNTRY-WISE EXPORTS OF HANDICRAFTS

The major buyers for handicrafts (other than carpets) are as under:

Art Metal wares: U.S.A., Germany, U.K. & Italy

Wood Wares : U.S.A., U.K., Germany & France

Hand Printed & Textiles & Scarves: U.S.A., U.K. , Germany & Canada

Embroidered & Crocheted Goods : U.S.A., Saudi Arabia, U.K., Germany

Shawls as Artwares: Saudi Arabia, U.S.A. Japan & U.K

Zari & Zari goods: U.K. U.S.A., Japan & Saudi Value Adding Chain in Handicrafts
 Major Destinations for Indian Handicrafts
(% sh are in1998-99)

U.S.A. U.K.
32% 11%
Switzerland Others
1% 22%

Australia
Saudi Arabia
2%
2%
Canada
Netherlands JapanItaly
Germany France 3%
3% 4% 4% 11% 5%

Value Adding Chain in Handicrafts

Identification of market opportunities

Prototype design and development / adaption and refinement
Test marketing
Upgrading equipping facilities
Securing inputs
Entrepreneurial hiring, training, managing
Production, quality control and packaging
Costing and pricing
Physical distribution
Export market development

Other forms of Handicrafts Industry:

1. Spinning Industry

India Spinning Industry has gone from strength to strength since a very long time
now as it was the hub of cotton manufacturing. Cotton is not only consumed to the
highest extent in India but it has also become one of the most profitable textiles in
the export industry.

Spinning in India can be classified into 2 categories: -Medium and long staple. But
there was a shortfall in the ‘extra-long’ category that continued for many years.
There was a massive downfall in the cotton spinning in India during 2004-2005.

This will not only motivate the farmers but will also make them stick to the desired
sector of cotton crop.

Some of the popular companies engaged in the India Spinning Industry are listed
below:

 Bhilwara Spinners Ltd. (LNG Group) – polyester, viscose, wool-blended

fabrics and high-end products like Lycra and linen. BSL Suitings and Mayur
Suitings are the two brands under Bhilwara Spinners Ltd.

 Nitin Spinners Ltd. - manufactures single and multi-fold yarns in the range
from Ne 4 to Ne 40 appropriate for various applications such as Knitted
Fabrics, Woven Fabrics, Terry Towels, Denims, Furnishing Fabrics, carpets
and other Industrial Fabrics.

 Sangam (India) Ltd. (Sang am Group of Companies) – Largest producer of

dyed yarn in India with a capacity of 64032 spindles in one location.

 Ajay Group of Industries – Manufacturer and seller of polyester viscose,

polyester woolen and uniform fabrics.

The Spinning Industry in India is on set to hit the global market with other fabrics
as well like the cotton textiles with its enthusiasm and consistency in work. It has
already reached a phenomenal status in India by beating the obstacles that caused a
downfall since past few years and is now on its way to cover a wider area in the
spinning sector.

2. Woodwork Industry

India Woodwork Industry is one of the fastest growing industries in India's

economy. India possesses around 100,000 registered wood ware units and more
than 200,000 artisans along with countless other woodworking related units in the
sector. Wood has always been a major part of Indian handicrafts and various
beautiful things are crafted out of it. India takes pride in manufacturing exquisite
and handsome wooden handicrafts in diverse motifs.

The wooden handicraft of India is draped with a vast cultural and ethnic diversity
which is applied to a range of themes, techniques and crafts. These wooden
handicrafts are unique in their own style and are claimed to be an absolute
personification of the Indian heritage. India Woodwork Industry has not only
specialized in serving architectural purpose but also manufactures furniture both in
traditional as well as ultramodern style.

In the rural areas of India, furniture and other household utensils are carved out of
wood in different shapes and styles. These simple objects are so uniquely blend
that they in no way look like daily use stuffs. Animal figures are also an excellent
example of India's ethnic woodwork. These wide ranging exclusive styles adopted
by the India woodwork industry to carve out various tape flying objects are
prepared in different parts of India. Some of the most well-known states of India
are Gujarat, Kashmir, Saharanpur (UP), Hoshiyarpur, Kerala, West Bengal, and
Bihar.

Gujarat - Famous for woodwork in carved chests, admirals, and wooden swings.
The wooden swings vary from plain Hewn wood to lavishly embellished ones.
There is also a tradition of embedding indigenously made gold, silver, and bronze
hues on wood in a place called Snakehead village in Gujarat. Surat, another place
in Gujarat, is well-known for its marquetry-work which is called as 'Sadeli' by
local people.

Kashmir- Famous for its exclusive Kashmir houseboat made out of a specially
mollified wood that does not soak in water. Also, the houses in Kashmir are made
of wood with latticework windows and geometrically patterned ceilings.
Hoshiarpur (Punjab) - Gained immense popularity for carving inlaying ivory
which is now replaced with plastic to cut down on the cost. Wooden furniture,
trays, and mirror frames are usually crafted using intricate designs that were
claimed to be the royal patronage ages back.

Saharanpur (U.P) - The leading place for commercial purposes. Sheesham and
Teak are the chief woods used for manufacturing traditional as well as
contemporary designed products-screens, cigarette boxes, tables, trivets, bookends,
and so on. Of late, Saharanpur is dealing with wood seasoning only.

Kerala - Specializes in arena handicrafts that along with representing their

customs and beliefs also portray their spiritual values and emotions.

Other areas - West Bengal, Bihar, Orissa and Andhra Pradesh are also engaged in
carving out various uniquely designed items out of wood.

India Woodwork Industry uses various kinds of woods, for example, Walnut,
Sandalwood, Teak, Sheesham, Deodar, Ebony, Redwood, Rosewood, Red, Cedar,
Sal, and many more. Recently, embedding of brass wires (Tarkashi) has gained lot
of attention worldwide. India has set up over 3,000 woodworking units and the
number is increasing with the passage of time.
3. Metalworks Industry

Metal work is an age-old tradition in India. Indian Metalwork’s Industry has been
reigning successfully since last 5000 years from now. The beautiful image of the
dancing girl from Mohanjodaro is one of the most outstanding works of the Indian
Metalwork’s Industry.

Metal works in India had used a wide array of metals, such as, iron, copper, silver,
and alloys like bronze, bell metal, white metal, and etc to manufacture items like
pots, pan, utensils, photo frames, and figurines of deities, mythological characters
and animals.

Indian Metal works Industry has reached the level of excellence in craftsmanship
with its exclusive works. One of such example is the iron pillar at Mehrauli (Delhi)
which belongs to the Mauryan. The craftsmen during Cholas period mastered at
bronze sculptures.

Traditional vessels of iron and brass are the specialty of Ladakh in Kashmir.
Kashmir is also well-known for other metal works, especially the richly graven
traditional household items such as, bowls, samovars, plates and trays. In 'Naqasi',
epicurean floral and calligraphic designs are embossed on copper and silver pieces.
Figurines of deities and household utensils are some popular metal works in
Banaras.

A nomadic tribe called Godiya Lohar in Rajasthan crafts iron utensils for regular
use and those who mastered in craftsmanship makes idols, lamps, and curios.
Jaipur prides its craftsmanship in brass engraving and lacquering. Items carved out
of these metals are photo frames, bowls, plates, boxes, and etc. The art of
Koftagari or damascening work is practiced at Alwar. Other states that bears fame
for beautiful and ethnic metal works are Madhya Pradesh, Andhra Pradesh, Orissa
and Tamil Nadu.

Flat metal products are highly manufactured by SAIL, Tata Steel, Ispat Industries,
Jindal Group of Industries, and Uttam Steel and Bhushan Steel.

Indian Metalworks Industry has acquired a commendable status not only in India
but also in foreign states by selling its unique products in the local as well as in the
global market.

Wooden Handicraft Industrial Overview:

Wooden handicrafts are specialized skills passed on from one generation to the
next. The term 'wooden handicrafts' refers to a wide range of wooden items
carrying utilitarian and artistic value that are made by hand, or with the use of
simple tools.

According to the classification of Indian industries, a small scale industry is

defined as an industry that is:

• Not registered under the Factory Act.

• Investment in fixed assets does not exceed Rs 60 lakhs.
Small scale industries are classified into two categories:

• Modern small scale industries like power looms etc.

• Traditional industries like handlooms, sericulture, khadi, coir, and
handicrafts.
Wooden handicrafts fall in the category of small scale traditional industries.

Role in Indian Economy

The wooden handicrafts industry plays an important role in the Indian economy.
This industry requires low capital investment and other resources. The wooden
handicraft sector provides a high ratio of value addition, and has emerged as one of
the major sources of foreign exchange earnings for India.

Indian wooden handicrafts are much sought after the world over, and form an
important export commodity of India. Although India's handicraft exports show a
consistent increase of fifteen percent every year, its share in the international
market is not more than two percent.

The Indian wooden handicraft sector is the second largest employment provider
(after agriculture). It employs about six million artisans. Women constitute a large
section of the handicrafts industry, including people belonging to the weaker
sections of society.

Objective of the survey

• To know about the market potential for the handicraft

• To analyze the handicraft manufacturing, its competition, customer

preferences and their satisfaction level.

• To find out the major players in the market

Source of Information

Primary (Market Survey) and Secondary data

Methodology Adopted:

Research plan was developed through conclusive research design using descriptive
research analysis methods by survey as detailed below:
Research Approach:

1. Primary data for gathering information regarding manufacturing

requirements and facilities available at Shekhawati region was collected by
personal interview with different manufacturers selected on the basis of
random sampling survey method.

2. Secondary data regarding world demand and supply positions, Indian

Handicraft status and other relevant information were gathered from
different websites.

PESTLE Analysis:

PESTLE analysis stands for "Political, Economic, Sociological, Technological,

legal, and environmental analysis" and describes a framework of macro
environmental factors used in the environmental scanning component of strategic
management. It is a part of the external analysis when conducting a strategic
analysis or doing market research and gives a certain overview of the different
macro environmental factors that the company has to take into consideration. It is a
useful strategic tool for understanding market growth or decline, business position,
potential and direction for operations.

PESTEL Analysis is a simple, useful and widely-used tool that helps us

understand the "big picture" of our Political, Economic, Socio-Cultural
Technological, Legal and Environmental Factors. As such, it is used by business
leaders worldwide to build their vision of the future.

PESTLE analysis is concerned with the environmental influences on a business.

Identifying PESTLE influences is a useful way of summarizing the external
environment in which a business operates. However, it must be followed up by
consideration of how a business should respond to these influences.

It is important for these reasons:

First, by making effective use of PESTEL Analysis, we ensure that what we are
doing is aligned positively with the powerful forces of change that are affecting
our world. By taking advantage of change, we are much more likely to be
successful than if your activities oppose it;

Second, good use of PESTEL Analysis helps us avoid taking action that is doomed
to failure from the outset, for reasons beyond your control; and

Third, PESTEL is useful when you start operating in a new country or region. Use
of PESTEL helps us break free of unconscious assumptions, and helps us quickly
adapt to the realities of the new environment.

The table below lists some possible factors that could indicate important
environmental influences for a business under the PESTEL headings:

Political / Legal Economic Social Technological

- Environmental - Economic - Income - Government

regulation and growth (overall; distribution (change spending on
protection by industry in distribution of research
sector) disposable income;

- Taxation (corporate; - Monetary policy - Demographics - Government and

consumer) (interest rates) (age structure of the industry focus on
population; gender; technological effort
family size and
composition;
changing nature of
occupations)
- International trade - Government - Labour / social - New discoveries
regulation spending (overall mobility and development
level; specific
spending
priorities)

- Consumer protection - Policy towards - Lifestyle changes - Speed of

unemployment (e.g. Home technology transfer
(minimum wage, working, single
unemployment households)
benefits, grants)

- Employment law - Taxation - Attitudes to work - Rates of

(impact on and leisure technological
consumer obsolescence
disposable
income,
incentives to
invest in capital
equipment,
corporation tax
rates)

- Government - Exchange rates - Education - Energy use and

organization / attitude (effects on costs
demand by
overseas
customers; effect
on cost of
imported
components)

- Competition - Inflation (effect - Fashions and fads - Changes in

regulation on costs and material sciences
selling prices)
 - Stage of the - Health & welfare - Impact of changes
business cycle in Information
(effect on short- technology
term business
performance)

- Economic - Living conditions - Internet!

"mood" - (housing, amenities,
consumer pollution)
confidence

Labour Requirements

Handicraft is a labour intensive product and it is all depend upon labour only and
all kind of labour requirements are there like in this we need skilled , semi
skilled and unskilled workers. So total requirements are as follows:

Salary (Rs.)
Employees Number
Per day Per month Annually
Production
1 - 5000 60000
Supervisor
Accountant 1 - 5000 60000
Skilled 54000*5 =
5 150 4500
Workers 2,70,000
Semi skilled 45000*8 =
8 125 3750
Workers 3,60,000
Unskilled 36000*3 =
3 100 3,000
workers 1,08,000
Peon 1 - 2,500 30,000
Guard 1 - 2,500 30,000
Total 20 9,18,000
Strategy to appoint & retain employees

 On time payment is a best retention strategy. So I will give on time

payments to retain my skilled worker.

 Medical facility to all worker and employees.

 Occasional bonus to skilled workers.

 Housing facility: I will provide labour quarter to skilled worker who are not
from local areas.

 I will provide employment to their spouses based upon their ability.

SALES FORECASTING

SALES FORECAST
Year 2009 2010 2011
Sales 3288000 3562000 3836000
Conclusion:

The Indian Handicraft Industry stands a unique place among all other industries. It
represents the rich culture, tradition and heritage of India. India’s rich cultural
diversity and heritage provides a unique and huge resource for developing craft
products. The Indian Handicraft Industry is showing continuous growth rate of
15% every year and it is one of the most important segment of decentralized sector
in India.

Most of the part of industry operates in rural and semi urban areas throughout the
country and have large and potential in Indian & International market. Indian
Handicraft Industry provides wide range of products because of country’s
diversified culture, traditions and heritage. There is huge demand of Indian
Handicraft products in international market. Industry provides ample opportunities
for employment to people belonging to backward and weaker classes of society.
However, Indian Handicraft Industry has the status of cottage industry in India, but
it has shown promising growth and evolved as one of the major revenue generator
over the years. It has shown continuous growth at the rate of 15-20% over the
years and contributes major role for export and foreign earnings.

Low capital investment, Cheap and skilled labour, Diversified product portfolio,
Flexible Production are few important features of Indian Handicraft Industry.
However, Lack of Infrastructure & Technological support, Lack of awareness of
international and new trends and Poor Promotional campaigns are a few drawbacks
of industry which needs to be overcome. It is estimated that Handicraft Industry in
India is all set to grow with rapid rate in future and contribute its share towards
economic development handsomely.

Bibliography:-

• www.handicrafts.np.org

• http://www.Articlesbase.com

• Search In Index

• www.indianhandicraftexporter.com

• www.google.co.in

• www.wikipedia.com

• www.yahoo.com

• www.ori.nic.in

• www.answers.com

• www.handicraftdpr.htm