Empowering Women - Case Study

TCJ-10-2021-0198
Avaneetha Textiles: empowering women

through education
Satya Nandini Arjunan, Minu Zachariah and Mathew J. Manimala
Authorised for educator review use only by Faraz Ali Shah, Capital University of Science and Technology Islamabad. Expiry date 4-Jan-2024
Satya Nandini Arjunan and Introduction
Minu Zachariah are both
Any visitor who walks in to the premises of Avaneetha Textiles is sure to experience a sense
Usage permitted only within these parameters otherwise contact info@thecasecentre.org

based at the Department of
Management Studies and of pride for they will sight only young women workers operating on the shop floor of a textile-
Research Centre, BMS spinning mill. “Education narrows gender discrimination and empowers women.
College of Engineering, Empowerment in turn bridges the socio-economic differences in the country and this was
Bangalore, India. the idea behind Avaneetha Textiles Pvt. Ltd.,” [1] said Kalpana Anand, the Executive
Mathew J. Manimala is Director of the firm. The company was established in the year 2004 in Coimbatore and is
Professor (Retd) at
currently being managed by two sisters Uma (Managing Director) and Kalpana (Executive
Department of OB-HRM,
Educational material supplied by The Case Centre
Director). Women dropouts belonging to economically weaker sections were recruited as

Copyright encoded A76HM-JUJ9K-PJMN9I
IIM Bangalore, Bangalore,

India. blue-collar workers to do spinning work. This business model is currently supporting around
900 young women. In addition to regular wages, the company provided them with
accommodation and an opportunity to learn while they earn. Although the firm aimed to
empower women workers through education, the value of this initiative was not understood
by many women workers. Among the new recruits, every year on an average only 30% of
women workers aspired to pursue their education. Moreover, around one third of them
dropped out before completing their courses. Kalpana realized that such a conduct on the
part of their employees would hinder the goal of empowering women. Therefore, the
challenge before her was to motivate more women to enroll for different courses and
thereby improve the quality of their life and career.
Founding of Avaneetha textiles

Kalpana’s and Uma’s father, KP Ramasamy (popularly known as KPR), Chairman of KPR
Mills, mentored his daughters for starting a new business unit similar to KPR Mills. This was
how Avaneetha Textiles (named after Kalpana’s son, Avaneeth), a private limited company,
came into existence. The groundwork for building the required infrastructure started in 2004
under the supervision of Mr Senthil Kumar, who was appointed initially to take care of these
activities. Now, as one of the three Directors, he handles operations and human resources
(HR), whereas the two sisters Uma (Managing Director) and Kalpana (Executive Director)
handle finance and marketing respectively (Exhibit 1).
Origination of the business model

Disclaimer. This case is
intended to be used as the KPR was the inspiration behind the “women-only” employees’ business model. He was a
basis for class discussion pioneer in the textile business with more than four decades of experience in the field.
rather than to illustrate either
effective or ineffective handling Despite achieving great success today, he was not so fortunate enough to complete
of a management situation. The
case was compiled from
graduation due to family responsibilities and financial difficulties. However, in 1984, KPR,
published sources. with a minimum investment that came from the family savings, started a power loom with
PAGE 506 j THE CASE JOURNAL j VOL. 18 NO. 3 2022, pp. 506-530, © Emerald Publishing Limited, ISSN 1544-9106 DOI 10.1108/TCJ-10-2021-0198
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TCJ-10-2021-0198
eight spindles and manufactured yarn with his personal investment. As the capacity of his
looms expanded to 100 spindles, he started his first spinning unit in 1995, KPR Mills, in
Sathyamangalam (a small town in Tamil Nadu). This unit initially had male and female
workers on the shop floor which were supported with hostel facilities. During that time, there
were two incidents that caused KPR to reflect upon and revise his business model.
He observed that while the male workers were actively involved in union activities, the
female workers were hardly concerned about them. The other incident occurred during one
of his routine factory visits. He noticed a young female worker on the shop floor, who came
to him with tears in her eyes. As he had a natural concern for his employees, he could not
stop enquiring about the reason for her unhappiness. Talking to her, he understood that the
girl was unhappy because she could not continue her studies in spite of getting good marks
in her 10th standard, as her family was poor and depended on her earnings for sustenance.
She requested him if he could help her continue with her studies while being employed.
KPR was deeply moved by the girl’s situation, which he thought could be the plight of many
other girls working in his mill.
Such incidents ignited a thought-provoking question for KPR, “Can I do something to
educate such underprivileged young women?” His genuine concern for his workers made

him talk to a few people in the education industry and finally he could get trainers on to his
campus to teach the girls who wanted to continue their studies after their work hours. They
were helped to register as private candidates with the boards of secondary and higher
secondary education and appear for the exams. KPR also spoke to the officials in the Open
University system and helped the girls to enrol themselves for graduate studies also. The
strategy was successful and the girls were able to learn while they earn.
The deep interest of his young female employees in pursuing further education and their
sincerity at work without being distracted made KPR think of helping them and come out
with an innovative business model for combining work and education. He decided to recruit
girls for his factory, who were school dropouts so that he could provide them employment
as well as education. He was convinced that the education they acquire while on this job
would support their lives in general and future careers in this company or elsewhere. This
was how the “women-only” employees’ business model came into existence and was
applied by Avaneetha Textiles as well.
Avaneetha textiles’ business model and growth

With the infrastructure in place, Kalpana started directly with only women workers. They
recruited 300 young women (20% were 16 to 18 years of age and 80% were above 18) and
commenced production with 12,000 spindles in 2006, during which the textile business was
at its peak. They expanded to 36,000 spindles in 2008 with a staff-strength of 600 women.
Then it took them almost 10 years to reach 60,000 spindles with an employee-strength of
900 women workers. In terms of output, they had a capacity to produce 50,000 kilograms of
yarn per day (Exhibit 2). The yarn produced by the company was supplied to garment
companies in Tiruppur [2]. The company recorded steady growth in its output with a
turnover of INR4,126.3m (US$54.78m) for the year 2019–2020 (Table 1).
Human resources practices at Avaneetha textiles

Most of the women were recruited from the villages in South Tamil Nadu. People in these
regions were dependent on rain-fed agriculture and faced difficulties in earning their living
in the aftermath of frequent monsoon failures. As a result, the farmers were not able to attain
financial stability, thereby causing their children to reluctantly drop out of school or college
and undertake odd jobs to run the family.
In view of this situation, the HR policy at Avaneetha Textiles aimed to recruit, retain and
educate women. The authorized staff of the firm visited villages to explain and promote the
VOL. 18 NO. 3 2022 j THE CASE JOURNAL j PAGE 507

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Table 1 Revenue earned

Year Revenue in millions (INR) Revenue in millions (USD)
2015–2016 2786.5 42.06

2016–2017 3145.2 48.53
2017–2018 4082.9 62.74
2018–2019 4199.3 60.38
2019–2020 4126.3 54.78
Source: Anand, Kalpana. “Re: Information required.” Received by Sasikala HR, 08 February 2021.
Email interview
facilities and the work environment at Avaneetha Textiles by playing videos. The recruitment
process was conducted every month, initially, from the rural areas of Tamil Nadu. Later, as
the company’s recruitment policies became well-known among the villagers, the referral
system was further extended to neighbouring states. For instance, the mill hired women
from the Northeast who came through contacts. At any point in time, the mill had about 900
women workers available, of which about 850 were allotted work. The company preferred to

have the cushion of an excess of 50 workers to manage any contingencies of some who
discontinued abruptly. In addition to the shop floor workers, the mill had men and women
who formed the administrative staff, the maintenance staff and drivers.
Although women of 16 years of age were recruited, the company largely preferred those
above 18. If the potential job candidates were below the age of 18, the mill required to get a
fitness certificate from the Government. Furthermore, the firm was obligated to employ such
recruits only in the day shift. In terms of educational qualifications, the firm absorbed both
dropouts and those who successfully completed Grades 10 or 12. However, these
candidates were further enquired about whether or not they would be interested in
continuing their education. Those interested in higher education were given more
preference because it was easy for the company to enrol them for the respective higher
levels of education. The company aimed to improve their career prospects regardless of
their decision to stay in or quit the job.
Kalpana did not insist on getting any bond signed by the workers in return for the training
imparted to them for their job or education. Right after joining, the women were trained for a
month in the specific processes involved in their respective jobs, after which they would be
deployed on their actual jobs. There were six main processes involved in making yarn from
cotton (Exhibit 3). Some processes were to be performed on tall machines, which could be
operated only by relatively tall women. Hence, women workers were assigned to different
tasks based on physical requirements for a particular job.
Residential facilities to support the ‘‘earn and learn’’ model

Providing hostel facilities for workers was not new for textile mills situated in Coimbatore.
The pioneer in this policy was a company called Premier Mills, which had introduced hostel
facilities for their employees, both men and women. When KPR introduced a “women-only”
production unit as his business model, the Premier Mills model of providing accommodation
at the worksite became all the more necessary to make the women workers feel secured at
the workplace.
Currently, KPR Mills and Avaneetha Textiles are the only two mills in India that exclusively
employed women workers in the production unit and also provided them with hostel
facilities. Kalpana created full-fledged hostel facilities for the female workers to attract
people coming from distant places. Moreover, the probability of absenteeism was low, so
the mill could function smoothly and efficiently. The residential facilities also provided the
firm sufficient time to conduct classes for the women workers. As the premise provided
varied facilities and was safe and protected from trespassers, the pleased parents
PAGE 508 j THE CASE JOURNAL j VOL. 18 NO. 3 2022

TCJ-10-2021-0198
permitted their daughters to stay, work and continue their education at the firm.
Furthermore, satisfied women workers spread the word about their work, training and
accommodation facilities which in turn attracted more and more women to this type of job
and life.
Life @ Avaneetha textiles

Hostel facilities
Kalpana ensured that the hostel compound had electrical fencing for the safety and security
of women. Mobile phones were allowed on the campus, so that residents could contact
their friends and relatives when necessary. This was in sharp contrast with the practice in
other spinning units, where mobile phones were not permitted on the campus. The hostel
mess had a big dining hall and a fixed menu for each day (Exhibit 4).
A food committee was constituted with residents as members particularly responsible for
deciding on what a healthy and balanced diet must contain. Based on the suggestions of
the residents, changes were periodically incorporated to the menu. As the production unit
was functioning for 24 h, the mess served different meals for different parts of the day. For

instance, light and digestible food was served at night. In addition to the regular mess, there
were pay-and-eat counters that served snacks and ready-to-eat food items. Purified
drinking water facilities were made available at different locations on the campus. The
hostel had a separate washing area. There were TV rooms and an auditorium with 200
seating capacity. Movies were played in the auditorium using a projector at specified
timings.
The new recruits were allotted to hostel rooms in such a way that there were senior workers/
students in each room to guide them. Each floor had an in-charge who worked along with
the wardens and the volunteers. Although facilities such as a grievance team and a
suggestion box were made available for the residents, they did not report any major
problems or issues till date.
The hostel also had a recreational area for extra circular activities with necessary equipment
and trainers to coach women workers on sports and games of their interest. Moreover,
competitions were organized every year by the KPR Group, and employees of Avaneetha
Textiles competed with the employees of the various units of KPR Mills. Besides sports and
games training, the company was providing Yoga lessons for its workers. The other facilities
available on the campus were a library, a super market and a bank with ATM facility. The
campus was always bustling with activities, which included the celebration of all the local
festivals.
However, during the COVID-19 pandemic, all the women workers were instructed to remain
in the hostel and follow social distancing norms to the maximum extent possible. Although
work at the mill was halted during the lockdown due to the pandemic, all women workers
were paid regularly.
Work shifts and leave rules

The women workers were allotted in three shifts. The shift timings were from 7 a.m. to
3.30 p.m., 3.30 p.m. to 12 a.m. and 12 a.m. to 7 a.m. The 12 a.m. shift was shorter, as it was
a night shift. Nevertheless, the women employees were assigned to different shifts every
now and then. All the shifts had 30 min of break. Classes were conducted between 9 a.m. to
12 p.m. and 6 p.m. to 9 p.m. (Exhibit 5). The women employees were grouped into batches,
and all girls enrolled for a particular course belonged to the same batch and shift, so that
attending classes was easy for them. A student enrolled for any course has around 8 h to
work, 8 h to rest and 8 h to attend classes and self-learn (3 h of class and 5 h to self-study).
No overtime is permitted. Labor laws were followed strictly and wages were paid according

TCJ-10-2021-0198
to the Tamil Nadu Minimum Wages Act. The cost-to-company (CTC) was INR 14,500
(approximately US$200) per month per employee inclusive of PF, ESI, and bonus. However,
education was free of cost and was not included in the CTC. However, the company made it
mandatory that the women paid 50% of the examination fees with a view to ensuring their
commitment towards studies.
Although the women were given a one-day weekly off, those above 18 were permitted to
leave the premises between 6 a.m. and 6 p.m., and those between 16 and 18 years of age
could leave the premises only if they were accompanied with their parents. The yearly
leaves amounted to a total of 25 days of which 16 days were optional and could be availed
at the rate of 8 days every 6 months. The remaining 9 days were kept aside for national and
local holidays. In addition to these, the women enrolled for various courses were granted
study leave of 5 days before their examinations as well as leave for the exam-days.
Medical facilities
The hostel also had a nursing station that was open for 24 h, where a doctor was available
on alternate days (Exhibit 6). Sanitary napkins were available in vending machines and

medicines for any illness were given at free of cost. Severe illnesses that could not be
treated in the in-house nursing station, arrangements for their treatment were made in
external hospitals; however, so far no such cases have been reported. Moreover, the
production unit has so far been accident-free, due to strict adherence to the safety
standards enforced by the company. Living and working far away from their hometown and
their parents, it was but natural that these young women workers may feel homesick. To
relieve them of any stress of homesickness, the company organized motivational talks and
mentoring sessions by expert counsellors.
Educating women workers

Courses, faculty, exams and placement
On joining Avaneetha Textiles, the women were guided to enrol for different courses based
on the level of their prior qualifications. For all the previous years, the highest enrolment has
been for undergraduate programs, followed by Grade 12, and Grade 10, in that order.
Grade 10 and Grade 12 students were given training on the campus, and they would write
their exams as private candidates under the Secondary and Higher Secondary Boards of
Tamil Nadu. Grade 12 students mostly opted for specializations in Commerce and
Accountancy streams.
Interestingly, a few women workers also enrolled for graduate programs. The graduate and
undergraduate students were enrolled in the Tamil Nadu Open University for MBA/MCA/
Commerce/Business Management/Arts and were trained on the campus. Although six
teachers were permanently employed, the company also appointed part-time teachers
based on the requirement for an external faculty and taught specific courses. In addition to
organizing coaching classes on the campus, the company enrolled the higher-education
level students for evening classes at KPR College of Arts and Science. The graduating
students were also given training to attend placement interviews. One such recent visitor
was Just Dial Limited, which hired a few candidates for positions in HR and Finance in their
organization.
Challenges in motivating the women to enrol for courses

As Kalpana aimed to employ only women dropouts in the production unit, she made sure to
obtain an undertaking from women candidates during the recruitment process that they
would resume their education and enrol themselves for a suitable program. However, there
were many instances of women workers flinching or withdrawing from registering for the

TCJ-10-2021-0198
academic courses. For instance, some of the new recruits who dropped out in primary or
middle school chose not to continue their studies even though there was a provision for
them to get directly enrolled for Grade 10. Therefore, to Kalpana’s dismay, only around 30%
of the recruits enrolled themselves for further studies (Table 2). Among those registered,
about one third opted for vocational training programs related to tailoring, handicrafts, etc.
instead of academic courses. Kalpana tried to encourage them to enrol for academic
courses but she could not force them, as she was afraid if they would choose to quit.
Although only a few women workers that selected academic courses of their interest were
successfully able to complete their education, there were about one third of students who
discontinued. This was due to the inability to cope up with work and academic stress while
others were forced into marriage by their parents before they could complete their courses.
Motivating women workers

The company adopted various measures to motivate the women towards education. These
were mainly in the form of gifts and cash-prizes. Gifts were given to all those securing 100%
attendance in classes. Besides, there were cash-prizes based on the percentage of marks

scored in the final examination, which are as given below:
䊏 Cash prize of INR 10,000 (US$137) for those securing 80%–89% marks in the Grade 10
exams.
䊏 Cash-prize of INR 50,000 (US$689) for those securing 90% or more marks in the Grade
10 exams.
䊏 Cash-prize of INR 25,000 (US$344) for those securing marks in the range of
1,100–1,149 out of 1,200 in the Grade 12 exams.
䊏 Cash-prize of INR 1, 00,000 (US$1,378) for those securing 1,150 or more marks out of
1,200 in the Grade 12 exams.
This strategy was very successful in motivating and creating interest in women workers
towards education. For instance, a women worker secured 1,149 marks and requested for
the prize money, although she deserved only INR 25,000 as per norms, the management
was magnanimous enough to give her the higher prize money of INR 1, 00,000.
Transformed lives
Kalpana was pleased to notice the development of positive attitude and behaviors in
women workers after being absorbed into the firm. Being relocated to the hostel from their
rural areas, they were not familiar with the basic etiquette of urban life. They had to be
trained in various aspects of community living including table manners, dressing styles and
the use of restrooms. In general, it was observed that the women were able to quickly
mingle and socialize with each other, and that some understood the value of education for
the development of their personality and identity.
Table 2 Details of women recruited and enrolled for various courses

Year No. of women recruited 10th 12th/Pre-Degree Degree PG Others No. of women dropped out
2015–2016 698 35 24 39 1 30 39
2016–2017 789 13 22 55 4 30 37
2017–2018 587 31 25 87 5 44 58
2018–2019 545 19 15 70 5 34 43
2019–2020 406 12 11 94 6 55 53
Source: Anand, Kalpana. “Re: Information required.” Received by Sasikala HR, 08 February 2021. Email interview

TCJ-10-2021-0198
Graduation
As soon as the women workers completed their courses, Kalpana encouraged them to
search for better job prospects elsewhere. However, they were welcome to continue
working at Avaneetha Textiles for as long as they want. For instance, women workers
continued to work at the mill for around 2–5 years. However, the longest ever term served by
a women worker in the company was 9 years, who was recruited at 19. She pursued an
undergraduate course and MBA during her tenure and is currently working as a caretaker/
manager at the hostel. Usually, the girls would work with the mill up to a maximum of
25 years of age, by when they would be married off. So far, no one continued to work at the
mill after getting married as they would have to shift to different locations. Since 2008,
Avaneetha Textiles has transformed lives of 698 women workers that have successfully
graduated from various courses (Table 3).
Employment
After graduation from their respective courses, the women were given an opportunity to
undergo placement training. Even without such additional training, their newly acquired

qualifications opened up a large number of employment opportunities for them. Many of
them have become nurses, teachers, police personnel, corporate employees, etc. The
company organized an Alumni Meet every year for their graduates, which has become a
special occasion for several women to come back to their alma mater with a great feeling of
pride, camaraderie and gratitude.
Success factors of an innovative business model

Although it may appear that this innovative business model of “stay, work, study, and leave”
was beneficial only to the underprivileged women workers, it was equally lucrative for the
firm. For instance, the “women-only” employees’ business model was largely constructive in
completely eliminating the union activities in the factory.
As far as the efficiency at the mill was concerned, there was no difference between male
and female workers. However, with the innovative business model in place, there were
significant increase in efficiency and productivity due to lack of distractions due to union-
related activities. Another reason for the increase in productivity was the creation of a
residential worksite, which contributed to the minimization (rather than elimination) of
absenteeism at work, as the only reason for being absent was common illnesses. Moreover,
the model of combining work and study had a salutary impact on the attrition rates, as many
Table 3 Women graduates over the years

Year No. of students
2008–2009 20
2009–2010 25
2010–2011 54
2011–2012 33
2012–2013 51
2013–2014 37
2014–2015 68
2015–2016 83
2016–2017 75
2017–2018 107
2018–2019 70
2019–2020 75
Source: Anand, Kalpana. “Re: Information required.” Received by Sasikala HR, 08 February 2021.
Email interview

TCJ-10-2021-0198
were driven to complete their courses. The incentive for quitting abruptly was low even for
those not enrolled for courses, as they were from underprivileged backgrounds in need of a
job.
Furthermore, this business model was efficient in reducing labour-related costs. For
instance, as workers leave within 5 years, a new set of people were appointed at the junior-
most level and therefore, the wages were paid at the lowest rates. The company saved on
salary and increments at higher rates, as only a few continue their term beyond 5 years.
Consequently, their cost on gratuity payments was also minimal. All in all, Kalpana believed
that this business model provided a win–win strategy for both the employees and the
employer. On the social front, it has the salutary impact of promoting women empowerment
and gender equity.
Challenges and the way forward

Although the business model was being perceived as successful and was claimed to be
beneficial to the individuals, the company and the society at large, the company was
experiencing a decline in the number of new recruits (Table 2). Even after having accepted

the dual scheme of work and study, many of the women workers were disinclined to enrol
themselves for the courses when they joined the campus. Apparently, they were excited
about the change of status in their lives and wished to enjoy their leisure time rather than
spend it on attending classes. The Directors felt, one reason for this change may be the
traditional perception about education only as a means to get employment, which would
preclude the need for any studies after getting a job. Another reason, was the acquisition
and use of the mobile phones. For many of these rural women, the smart phone has an
aspirational value, and so they would buy one with their first month’s salary, however, in a
matter of time they got addicted to and distracted from it. It was observed in some cases
that the pressure from the company authorities on the girls about registering for further
studies was causing distress for them, due to which the company felt it was not advisable to
compel them further. Therefore, Kalpana believed that it was not feasible to compel them
any further. The fact that only 30% of the new recruits were opting to continue their studies
and a further 30% of them dropped out after enrolment was quite a worrisome fact for
Kalpana. She did not feel that this was good enough for achieving the lofty goal of
empowering under-privileged women through education they have set for the company.
At the end of a brief discussion on the issue with the company officials, Kalpana stated their
problem in the following words:
“How do we persuade 100% of the girls to opt for continuing their studies? We may also have to
think about the long-term sustainability of this business model. It is possible that in future there
may not be any need for educating the drop-outs, as the idea of universal education gets widely
accepted and implemented when “the learn while you earn program” would no longer be
relevant. How long do we sustain this model? What are the alternatives?” [1]
Notes
1. Anand, Kalpana. Personal Interview. 17 December 2020.
2. Tiruppur is a major textile and knit wear hub contributing to 90% of total cotton knit wear exports
from India.

PAGE 514
j THE CASE JOURNAL j VOL. 18 NO. 3 2022
Plate E1
Figure E1
Exhibit 2. Production Unit

Exhibit 1. Organization Chart
TCJ-10-2021-0198
TCJ-10-2021-0198
Exhibit 3. Spinning process
Figure E2
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Blow-room Feeding and

Carding Combining Drawing Roving
process Twisting
Source: Anand, Kalpana. “Re: Information required.” Received by
Sasikala HR, 08 February 2021. Email interview
Exhibit 4. Dining hall

Plate E2

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j THE CASE JOURNAL j VOL. 18 NO. 3 2022
Plate E3
Exhibit 5. Classes being conducted at Avaneetha Textiles
TCJ-10-2021-0198
Plate E4
Corresponding author
Exhibit 6. Nursing station
Satya Nandini Arjunan can be contacted at: satyanandini@hotmail.com
VOL. 18 NO. 3 2022

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TCJ-10-2021-0198

Avaneetha Textiles: empowering women

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Director). Women dropouts belonging to economically weaker sections were recruited as

IIM Bangalore, Bangalore,

Founding of Avaneetha textiles

Origination of the business model

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Avaneetha textiles’ business model and growth

Human resources practices at Avaneetha textiles

VOL. 18 NO. 3 2022 j THE CASE JOURNAL j PAGE 507

Table 1 Revenue earned

2015–2016 2786.5 42.06

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Residential facilities to support the ‘‘earn and learn’’ model

PAGE 508 j THE CASE JOURNAL j VOL. 18 NO. 3 2022

Life @ Avaneetha textiles

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Work shifts and leave rules

VOL. 18 NO. 3 2022 j THE CASE JOURNAL j PAGE 509

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mentoring sessions by expert counsellors.

Educating women workers

Challenges in motivating the women to enrol for courses

PAGE 510 j THE CASE JOURNAL j VOL. 18 NO. 3 2022

Motivating women workers

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Table 2 Details of women recruited and enrolled for various courses

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Success factors of an innovative business model

Table 3 Women graduates over the years

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Challenges and the way forward

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Exhibit 2. Production Unit

Exhibit 3. Spinning process

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Blow-room Feeding and

Source: Anand, Kalpana. “Re: Information required.” Received by

Exhibit 4. Dining hall

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Satya Nandini Arjunan can be contacted at: satyanandini@hotmail.com

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