DEPARTMENT OF FASHION MANAGEMENT STUDIES

SUBJECT : FASHION MARKETING

TOPIC : CSR ACTIVITIES OF FABINDIA

Submitted to :
Submitted by :
Dr Ruchika Dawar
Nidhi Chadha
Asst. Prof.
Kratika Jadwani
NIFT JODHPUR
(MFM, SEM-1)
 FABINDIA- Fabric Of Our Lives

 Fabindia is India's largest private platform for products that are made from
traditional techniques, skills and hand-based processes.
 Fabindia links over 55,000 craft based rural producers to modern urban markets,
thereby creating a base for skilled, sustainable rural employment, and preserving
India's traditional handicrafts in the process.
 Fabindia's products are natural, craft based, contemporary, and affordable.
 It was founded in 1960 by John Bissell to market the diverse craft traditions of
India. In 1976, its 1st retail store was inaugurated in Delhi.
FABINDIA’S Vision :
1. At Fabindia we celebrate India, and endeavor to bring all that we love about India to customers around the world.
2. In addition to making profits, our aims are constant development of new products, a fair, equitable and helpful
relationship with our producers, and the maintenance of quality on which our reputation rests.“

FABINDIA’S Mission:
1. They harness the transformative power of a well-run business committed to profitable growth in support of
Fabindia’s Vision.
2. They believe in strengthening and supporting the community of customers, designers, artisans, farmers, makers and
entrepreneurs inspired by India.
3. They give customers the products that delight them by interpreting our rich heritage and traditional knowledge,
while protecting the natural environment.
FABINDIA –Product Range
FABINDIA’S Business Model

ARTISAN MICRO FINANCE FUND

 To strengthen their Supply chain, William

Bissell thought of adopting a new model
wherein 17 SRC were opened.

 To fund these community owned companies

(SRC's) they created a fully owned subsidiary
Artisan Micro Finance Pvt Ltd, a venture fund.
Benefits of the Fund:
 Creating 100,000 sustainable rural jobs across India

 Direct interface with artisans

 Closer to sourcing – shortening the supply chain, better quality and pricing

-Enables the purchase of materials in bulk to get the best price

 Reduced logistics costs

 Less intermediaries resulting in more profit - The company is seen as the most profitable in the retail apparel companies
with a focus on profits and cash flow. Its net margin has been around 8%, three times that the industry averages

 Strengthened supply chain

FABINDIA’S SUPPLY CHAIN

7 Important SRC (supplier regional company):

 Desert Artisan Handicrafts, Jodhpur

 Desert Artisan Handicrafts, Bhuj
 Bijnor Artisans
 Deccan Crafts and weavers, Karnataka
 Krishna Weavers & Artisans, Andhra Pradesh
 Rang sutra, Rajasthan
 DAH Chanderi, Madhya Pradesh
 FABINDIA’S CSR Policy
CSR PHILOSOPHY

 Need for a vehicle that markets the vast and diverse craft traditions of India

 Blending indigenous craft techniques with contemporary designs to bring aesthetic and affordable products.

 Maximize the hand made element in their products, whether it is hand-woven textiles, hand block printing,
hand embroidery or handcrafting home products.

 Work closely with artisans by providing various inputs including design, quality control, access to raw
materials and production coordination.
 Triple Bottom Line
(People-Planet-Profit)
CSR Mission
AREAS OF APPLICATION :

1) Promotion of educational and Vocational skills

2) Social Welfare

3) Empowerment of Women

4) Sanitation and Health Care

5) Conservation of Environment

6) Rural Development Projects

7) Disaster Relief

8) Conservation of National Heritage, Art, Culture and other related

activities
9) Reducing environmental footprint

10) Minimum water wastage & protecting water resources across the globe

11) Reduce maximum exposure of plant operations

12) Protecting natural resources

13) Ensuring that no animals are harmed

14) Ethical means of marketing its products.

15) Promotes and supports small business ventures through inclusive business support and funding.

16) Establishing the green supply chain

CSR Activities & Implementation
The CSR activities to be undertaken by the Company shall be in line with the CSR mission stated in the CSR
policy and shall include activities prescribed under schedule VII of Companies act, 2013. The identified CSR
implementing partners will be Bhadrajun Artisans Trust, a registered society and Centre for Science and
Environment, a registered Society. We may further identify and collaborate with other organisations, registered
trusts, registered societies or companies incorporated under Section 25 of Companies Act or Section 8 of
Companies Act 2013 to implement our CSR Mission. We shall either directly or through BAT implement the mission of
Providing disaster relief to victims of natural calamities or force majeure events like floods, cyclones and earthquakes etc.,
by way of contribution to the Prime Minister’s National Relief Fund (PMNRF) or any other fund set up by the Central Government
For socio-economic development. The Company may also help in rehabilitation of persons affected by
natural calamities in any other approved form.

CSR Funds
The Company for the purpose of carrying on the CSR activities would spend at least 2% of the average Net Profits made during
three immediately preceding Financial Years. Any surplus arising out of the contribution made for CSR Activities, shall not
form a part of the business profit of the Company and shall be redeployed for such activities.
 CSR Activities
1. Activities of Bhadrajun Artisans Trust (BAT)

 BAT was established as a not-for-profit Society in 1988 by John and William Bissell.
 AIM : To build social development programs with a focus on education and crafts.
 BAT supports various NGOs & charitable companies, trusts working for the upliftment of
weaker sections of the society with a specific focus on areas like:
Education,
Provision of scholarships,
Employment,
Sanitation, healthcare,
Empowerment of women
Animal welfare, clean environment etc.
2. The Fab India School

Established in 1992
Provides cross-
in the village of
cultural exposure
Bali, Rajasthan

Non-religious, non- 49% of the enrolled

profit, co-ed students are girls
private school for
boys and girls

Providing equal Scholarships

educational
offered: Annual
opportunity for girls
through The John Scholarship and 12
Bissell Scholars Fund Year Scholarship
The Fabindia School partners with like minded organizations who provide support in kind as well as
financial support towards its mission of empowering the youth of rural Rajasthan, especially girls, through
high quality primary and secondary education.

A few examples are:

1. The Doon School :
Known for raising the best diplomats, politicians and leaders of India, The Doon School is helping the
school to train its teachers and empower them with latest teaching methods, identify learning disabilities in
children and to keep abreast with latest teaching and learning practices. The Fabindia School teachers visit
the Doon School for training and learning.

2. Scindia School :
With its Indian values and rich cultural heritage, the school is a great partner . They host exchanges for
teachers and students. The Fabindia School teachers visit for training and learning.

3. Maharani Gayatri Devi School :

The school hosts exchanges of girls and visits The Fabindia School in exchange.
3. Activities of Centre for Science and Environment (CSE)
• Headquartered in New Delhi, CSE is an independent, public interest registered society or
organization involved in advocacy and knowledge based activism on issues of science,
technology, environment and development

• The Centre’s efforts are built around five board programmes:

 Communication for Awareness
 Research and Advocacy
 Education and Training
 Knowledge Portal
 Pollution Monitoring

• Fab India contributes funds to CSE and support its endeavours . In turn, CSE promotes
Fab India’s involvement in their campaigns.
4. John L Bissel Scholars Fund (JBSF)

• Established in 2001 in memory of John Bissell, the visionary founder of Fabindia and one of the Fabindia School founders.
• JLB Foundation works for promoting education, employment enhancing vocation skills among children, especially girls in the rural
areas.
• The John Bissell Scholarship Fund (JBSF) was set up to provide affordable quality education to girls at The Fabindia School.

Scholarships provided :
1. Annual Scholarships
2. 12 Year Scholarship
3. Permanently Endowed Scholarship
 Key Objectives of JBSF :

1.To help the needy, poor and to grant financial relief, assistance and/or to provide relief to the aged,
needy, destitute, orphans, widows and aged persons in case of emergency & include all kinds of medical
relief and to support Non Government Organizations providing such services without any discrimination.

2. To provide education and Scholarships to the needy & bright students who do not have financial means and abilities but have a desire to study
and acquire academic or professional qualifications and to render other kinds of and to students and others including supply of books, stipend,
awards, and other incentives to study.

3. To provide need based assistance, in times of family crises like untimely death, make provision on individual basis for income generation and
support, help and assist in matters involving Marriage and allied expenses, and to assist in meeting cremation/burial expenses.

4. To encourage and help the Artisans and craftsmen to excel in design, leadership and research; to provide financial and other assistance to
enhance and strengthen the handbook and handicraft industry.
 FABINDIA & CSR-The way forward

https://www.indiatoday.in/magazine/cover-story/story/20170821-fabindia-fashion-business-model-
indian-clothes-rural-workers-1028873-2017-08-11

https://www.forbesindia.com/article/social-impact-special/rural-artisans-stand-to-benefit-from-
fabindias-aggressive-growth-plan/45369/1

https://www.bloomsburyfashioncentral.com/about/featured-content/fabindia-fashion-
with-social-objectives
https://www.hindustantimes.com/mumbai/csr-can-be-a-
company-s-most-profitable-division/story-
ymuPi85jfvNOlpVxUL9T4K.htm
 CSR ADVANTAGES

Employee
motivation
and retention
Socio-
Product
Economic
Differentiation
Development

Advantages

Customer Financial
Loyalty Performance

Brand
recognition
Cost Benefit Analysis
Benefits

FROM COMPANY’S PERSPECTIVE :

 Net margin has been around 8%, three times than the industry average.
 Profit earned from Fabindia School -
• Expenditure on Fabindia school in FY 2015-16 = 98,00,000/-
• Revenue generated from Fabindia school in FY 2015-16 = 3,30,73,000/- 
• Profit = 3,30,73,000 – 98,00,000 = 2,32,73,000/-
 FROM ARTISAN’S PERSPECTIVE

• Employment- FabIndia employs 80,000 artisans providing fixed salary

• Artisans who are shareholders of Jodhpur SRC - Share price increased to three times from Rs.100 to Rs.300

• Paru Bai, an artisan earned fixed salary, 176 shares and owns pucca house through investment in Rangsutra SRC

• Rang sutra's business has grown rapidly from Rs.30 lacs in 2006 to Rs.10 crore in 2015 and the company made a
huge profit.
BRAND RECOGNITION
 Recommendations
• Fabindia must initiate training programmers' that train artisans about sustenance of quality in
their products.

• Fabindia must train artisans involved in cultivation of cotton to initiate organic cotton cultivation.

• Fabindia must bring artisans under the ambit of health benefit policies.

• Fabindia must open a one-stop destination for artisans needs.

• Fabindia must train the artisans about waste management so that resources can be utilised to the
maximum extent which in turn will help both the company and the artisans in profit making.
 Bibliography

• https://www.fabindia.com/about-us
• http://www.fabindiaschools.org/bali/index.html
• https://www.bateducation.org/
• https://www.cseindia.org/
• https://www.fabindia.com/file/general/CSR%20Policy.pdf
• https://en.wikipedia.org/wiki/Fabindia