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KHADI AND VILLAGE

INDUSTRY COMMISSION

The Khadi
Industries
(KVIC) is a:

and Village
Commission

Statutory body
Established by an Act of
Parliament (No. 61 of 1956,
as amended by act no. 12
of 1987 and Act No.10 of
2006.
In April 1957, it took over
the work of former All India
Khadi
and
Village
Industries Board.

Objectives
The broad objectives that
the KVIC has set before it
are...The social objective of
providing employment.
The economic objective of
producing saleable articles.
The wider objective of
creating
self-reliance
amongst the poor and
building up of a strong rural
community spirit.

FUNCTIONS
Plan and organize training.
Supply raw materials or arrange raw
materials (common service facilities)
Promote Sale and Marketing.
To provide
directly
or
agencies.

Financial
through

To
promote
and
cooperative efforts.

assistance
specified

Suggestions
Capacity building to those persons
who engaged or likely to be engaged
in production of handspun yarn or
khadi or village industries.
Will organize more number of Fair
(Khadi Mela) for e.g. Ranchi khadi
fair
http://articles.timesofindia.indiatimes.com/2011-12-2
2/ranchi/30546230_1_stalls-ranchi-gears-village-indus
tries-commission

encourage

To encourage and promote research


in the technology used in KVI.

Engage more number of NGOs in


the training and implementation of
programs.
Convergence of all stake holders,
directly or indirectly.

Organizational set up
KVIC is functioning under the administrative control of the
Ministry of Micro, Small and Medium Enterprises
The Commission is having its Head Office at Mumbai and six
Zonal Offices located in Delhi, Bhopal, Bangalore, Kolkata,
Mumbai and Guwahati.
29 State Offices to facilitate speedy implementation of KVI
programmes.
At the Head Office, different Directorates have been
established in order to coordinate the functions like training,
marketing, funding, economic research and Rural Employment
Generation Programme (REGP) etc.
http://planningcommission.nic.in/plans/planrel/fiveyr/10th/vol
ume2/v2_ch5_4.pdf

GROUPING OF INDUSTRIES
While the khadi programme comprises hand spun and
hand woven cotton, woollen, muslin and silk varieties,
the village industry programmes have been classified
into seven broad groups. These are:
Mineral Based Industry;
Forest Based Industry;
Agro Based and Food Processing Industry;
Polymer and Chemical Based Industry;
Rural Engineering and Bio Technology Industry;
Hand Made Paper & Fibre Industry; and
Service Industry.
http://msme.gov.in/Chapter%205-Eng_200708.pdf

BUDGETARY SUPPORT TO
KVIC
ONLY ONE
RESOURCE.?
The
Union
Government through
the Ministry of Micro,
Small and Medium
Enterprises, provides
funds to KVIC for
undertaking
its
various activities
http://planningcommiss
ion.nic.in/plans/planrel
/fiveyr/10th/volume2/v2_

SUGGETIONS
Stop making strategies on
providing direct funds to
entrepreneur.
Involve NGOs and marketing
institution.
Link with private big players
like Pantaloon, ITC, HUL, P&G,
Big Bazaar, Reliance etc,,
NAFED
Organize events on the basis
of PPP model.
Link with corporate and work
through CSR activities.

CHALLENGE

LLAGE INDUSTRY PRODUCTS T


URBAN
MORE ENTREPRENEURAL
DEMANDING PRODUCTS

VILLAGE INDUSTRY
PRODUCTS

URBAN

URBAN
EXISTING CHANNEL
Training activities through its 38
departmental and non departmental
training centres.
Marketing is taken up through 12
departmentally run Khadi Gramodyog
Bhawans located in urban areas and
7050 institutional/retail sales outlets
spread over different parts of the
country.
KVIC also makes available quality raw
material to khadi institutions through
its six Central Sliver Plants (CSP)

SUGGETIONS

YOU ARE NOT LIKE PANTALOON.

YOU ARE NOT LIKE ITC..

YOU ARE NOT HAVING FUND LIKE RELIANCE.....


THEN, HOW CAN YOU SOLVE ISSUES LIKE:
Branding of product
Product quality and its importance in marketing
strategy
Distribution strategies of product companies IF
NOT
THEN WHY URBAN CONSUMER WILL BUY YOUR
PRODUCTS?
THATS WHY

NEED TO CHANGE THE MARKETING


STRATEGY.

NEED TO LINK YOUR PRODUCTS WITH URBAN


MORE DEMANDING RETAIL SHOPS, GO WITH
ITC, HUL etc., for BRANDING, PACKAGING
AND MARKETING.

TARGET ARMY CANTEENS AND OTHER


PUBLIC CANTEENS

MORE ENTREPRENEURAL
EXISTING SCHEMES:
RURAL EMPLOYMENT
GENERATION
PROGRAMME (REGP)
Main
objective:
To
generate
additional
employment
opportunities in rural areas
through
setting
up
micro
enterprises
Eligible beneficiaries: Individuals
(rural
artisans/entrepreneurs),
and
institutions,
cooperative
societies, trusts & Self Help
Groups (SHGs) for projects
costing up to Rs. 25 lakh.

EXISTING SCHEMES:
REBATE SCHEME
Main objective: make khadi & khadi
products more competitive than
other textiles.
Normal rebate (10 per cent) all through
the year and an additional special
rebate (10 per cent) for 108 days in
a year, is given to the customers
from funds made available through
budgetary support of the Ministry.
The rebate is allowed only on the sales
made by the institutions/centres run
by the KVIC/State KVIBs

MORE ENTREPRENEURAL
EXISTING SCHEMES:
PRODUCT DEVELOPMENT, DESIGN
INTERVENTION & PACKAGING (PRODIP)
SCHEME
Main Objective: For the improvement in product
quality, introduction of new designs and
better packaging.
Under this scheme, financial assistance is
provided to the institutions or entrepreneurs
affiliated to the KVIC or State KVIBs up to Rs.
2 lakh per project per year or 75 per cent of
the project cost whichever is less.
As an add-on benefit without
any extra premium
Up to two school going children of insured
artisans studying in class nine to twelve are
also eligible to get a scholarship of Rs. 100/each per month, under the scheme.

EXISTING SCHEMES:
RURAL INDUSTRIES SERVICE CENTRES (RISC)
SCHEME

Main Objective: To provide infrastructural support


and services to selected units to upgrade their
production
capacity,
skills
and
market
promotion.
Under this scheme, financial assistance for
establishing projects up to Rs. 5 lakh is
provided to KVI units.
KHADI KARIGAR JANASHREE BEEMA YOJNA
(JBY)
Main Objective: To provide insurance
cover to khadi artisans in group.
Formulated by KVIC in association with the
Life Insurance Corporation of India (LIC) with
annual premium of Rs. 200/- per beneficiary.

SUGGETIONS
Stop compromising with the
products,
Stop providing subsidies,
Provide value added services,
For making competitive products,
work on the quality of the product,
Cost cut strategies,
Link products to those who
individually produce same products.

DEMANDING PRODCTS
INCREASE QUALITY WITH LOW
COST

ATTRACTIVE
MARKETING

In order to improve the quality of


raw material in khadi sector, KVIC
has been operating its 6 CSPs at
Kuttur,
Chitradurga,
Sehore,
Raibareilly, Etah and Hajipur.
Suggestions:
Increase CSPs in Maharashtra, AP
& TN.
Adopt new technologies with
good training.
Stop providing subsidies.
Educational trips to learn new
techniques
and
knowing
consumer choice.

Apart from promoting sales of khadi


and village industries products
through its network of Khadi
Gramodyog Bhavans (KGB) and
retail sales outlets, efforts have
been made to organise a number of
exhibitions, in different parts of the
country as a cost effective publicity
and market promotion instrument.
Suggestions:
online promotion with purchasing
option.
Collaboration
with
famous
designers.
Maximum use of Television.

Always doing..in low level.

THANK YOU
Mohammad Azhar
MBA-Rural Management
Class of 2012
C-block, 4th floor Sector-125
Amity University - Noida201301UP,India
+91 9953151810
Blog:
http://blogs.siliconindia.com/AZHAR
Facebook:

http://www.facebook.com/mohamm
adazahar89
Twitter:
http://twitter.com/#!/AzharAmity

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