• The Khadi and Village Industries Objectives Commission (KVIC) is a: • The broad objectives that the KVIC has set before it are...The Statutory body social objective of providing employment. Established by an Act of Parliament (No. 61 of 1956, as • The economic objective of amended by act no. 12 of 1987 producing saleable articles. and Act No.10 of 2006. • The wider objective of creating In April 1957, it took over the self-reliance amongst the poor work of former All India Khadi and building up of a strong and Village Industries Board. rural community spirit.Resource:http://www.kvic.org.in/index.php?option=com_cont ent&view=article&id=257&Itemid=147
FUNCTIONS• Plan and organize training. Suggestions • Capacity building to those persons• Supply raw materials or arrange raw who engaged or likely to be engaged materials (common service facilities) in production of handspun yarn or khadi or village industries.• Promote Sale and Marketing. • Will organize more number of Fair (Khadi Mela) for e.g. Ranchi khadi fair• To provide Financial assistance http://articles.timesofindia.indiatimes.com/2011-12- directly or through specified 22/ranchi/30546230_1_stalls-ranchi-gears-village- agencies. industries-commission• To promote and encourage • Engage more number of NGO’s in the cooperative efforts. training and implementation of programs.• To encourage and promote research in the technology used in KVI. • 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/volume 2/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:Ø Mineral Based Industry;Ø Forest Based Industry;Ø Agro Based and Food Processing Industry;Ø Polymer and Chemical Based Industry;Ø Rural Engineering and Bio Technology Industry;Ø Hand Made Paper & Fibre Industry; andØ Service Industry.• http://msme.gov.in/Chapter%205-Eng_200708.pdf
BUDGETARY SUPPORT TO KVICONLY ONE RESOURCE…….? SUGGETIONS• The Union Government • Stop making strategies on through the Ministry of providing direct funds to entrepreneur. Micro, Small and Medium • Involve NGO’s and marketing Enterprises, provides funds institution. to KVIC for undertaking its • Link with private big players various activities like Pantaloon, ITC, HUL, P&G, Big Bazaar, Reliance etc,, • NAFED http://planningcommission. • Organize events on the basis nic.in/plans/planrel/fiveyr/1 of PPP model. 0th/volume2/v2_ch5_4.pdf • Link with corporate and work through CSR activities.
……CHALLENGE……VILLAGE INDUSTRY PRODUCTS TO URBAN MORE ENTREPRENEURAL DEMANDING PRODUCTS
URBANEXISTING CHANNEL SUGGETIONS• Training activities through its 38 • YOU ARE NOT LIKE PANTALOON…. departmental and non departmental • YOU ARE NOT LIKE ITC….. training centres. • YOU ARE NOT HAVING FUND LIKE RELIANCE..... THEN, HOW CAN YOU SOLVE ISSUES LIKE: Branding of product• Marketing is taken up through 12 departmentally run Khadi Gramodyog Product quality and its importance in marketing strategy Bhawans located in urban areas and Distribution strategies of product companies ……IF NOT THEN WHY URBAN CONSUMER WILL BUY YOUR• 7050 institutional/retail sales outlets PRODUCTS? spread over different parts of the THAT’S WHY…… country. • NEED TO CHANGE THE MARKETING STRATEGY…. • NEED TO LINK YOUR PRODUCTS WITH URBAN MORE DEMANDING RETAIL SHOPS, GO WITH• KVIC also makes available quality raw ITC, HUL etc., for BRANDING, PACKAGING AND material to khadi institutions through MARKETING…. its six Central Sliver Plants (CSP) • TARGET ARMY CANTEENS AND OTHER PUBLIC CANTEENS
MORE ENTREPRENEURALEXISTING SCHEMES: EXISTING SCHEMES: RURAL EMPLOYMENT REBATE SCHEME Main objective: make khadi & khadi GENERATION PROGRAMME products more competitive than (REGP) other textiles.Main objective: To generate additional employment opportunities in rural Normal rebate (10 per cent) all through areas through setting up micro the year and an additional special rebate (10 per cent) for 108 days in enterprises a year, is given to the customersEligible beneficiaries: Individuals (rural from funds made available through artisans/entrepreneurs), and budgetary support of the Ministry. institutions, cooperative societies, trusts & Self Help Groups The rebate is allowed only on the sales made by the institutions/centres (SHGs) for projects costing up to Rs. run by the KVIC/State KVIBs 25 lakh.
MORE ENTREPRENEURALEXISTING SCHEMES: EXISTING SCHEMES: PRODUCT DEVELOPMENT, DESIGN RURAL INDUSTRIES SERVICE CENTRES (RISC) INTERVENTION & PACKAGING (PRODIP) SCHEME SCHEME Main Objective: To provide infrastructuralMain Objective: For the improvement in product support and services to selected units to quality, introduction of new designs and upgrade their production capacity, skills and better packaging. market promotion.Under this scheme, financial assistance is Under this scheme, financial assistance for provided to the institutions or entrepreneurs establishing projects up to Rs. 5 lakh is affiliated to the KVIC or State KVIBs up to Rs. provided to KVI units. 2 lakh per project per year or 75 per cent of the project cost whichever is less. KHADI KARIGAR JANASHREE BEEMA YOJNA (JBY) As an ‘add-on’ benefit without Main Objective: To provide insurance any extra premium cover to khadi artisans in group.Up to two school going children of insured Formulated by KVIC in association with the artisans studying in class nine to twelve are also eligible to get a scholarship of Rs. 100/- Life Insurance Corporation of India (LIC) with each per month, under the scheme. 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 PRODCTSINCREASE QUALITY WITH LOWCOST ATTRACTIVE MARKETING• In order to improve the quality of • Apart from promoting sales of raw material in khadi sector, KVIC khadi and village industries has been operating its 6 CSPs at products through its network of Kuttur, Chitradurga, Sehore, Khadi Gramodyog Bhavans (KGB) Raibareilly, Etah and Hajipur. and retail sales outlets, efforts have been made to organise a number ofSuggestions: exhibitions, in different parts of the• Increase CSPs in Maharashtra, AP country as a cost effective publicity & TN. and market promotion instrument.• Adopt new technologies with Suggestions: good training. • online promotion with purchasing• Stop providing subsidies. option.• Educational trips to learn new • Collaboration with famous techniques and knowing designers. consumer choice. • Maximum use of Television.