It is about Indian carpet industry and problems faced by it and the suggested business stategies to improve its current situation.

1. INDIAN CARPET INDUSTRY

2.  One of the oldest industry in India
 Major centers are at Bhadohi, Agra, Jaipur & Kashmir and Panipat
 Types of Carpets :There are various kinds of carpets available in India-
• Hand-knotted Woolen Carpets
•Tufted Woolen Carpets
• GABBE Woolen Carpets
• Handmade Woolen Dhurries
• Pure Silk Carpets
• Staple or Synthetic Carpets
• Chainstich Rugs
 Indian carpets are famous and known worldwide for its magnificent designs and heart-winning
workmanship.
Nakaash
Person who designs the carpet
Kalimba
Person who do the weaving
Ranger
Person who do the dying

3.  Export-Oriented- 90 per cent of the carpets manufactured in India are exported
 Key Markets and Export destinations:
 Indian Handmade Carpet Industry is ranked No. 1 in the
international market having market share of around
35% of total world import of Handmade Carpets
 In 2012-13, exports of hand-made carpets stood at
US$ 1,080.90 million
 Indian hand-made carpets are exported to over 100
nations and the US accounts for the largest share.
For instance, around 60 per cent of the total carpet
exports in 2012-13 were to the US and the European
Union (EU)
 Carpets Export Promotion Council(CEPC)
 It is the apex body of exporters of hand-made carpets and other floor coverings in India. The
Council provides assistance to exporters by identifying new markets, providing financial aid,
sponsoring participation in worldwide events, arranging buyer-seller meets and resolving trade
disputes

4. Procuring
Raw Material
-Natural Fibers, Wool,
Silk etc
INDIAN CARPET INDUSTRY
Manufacturing Process
-Wool sorting &
Washing
-Carding
-Spinning
-Dyeing
-Carpet Knotting
-Trimming
-Washing and Drying
-Final Touches
-Packing
Distribution to traders
-Indian Retailers
-Export to foreign
Countries

5.  Lack of reforms in the production system hampering productivity, organized production
and supply of carpets
 Shortage of carpet grade wool - Indian carpet industry imports a large quantity of wool,
prices of which increased substantially in the recent years. However, due to increased
competition it is not possible to pass it onto the final prices.
 Lack of modern production facilities particularly dyeing, washing, processing, designing
etc.
 Indian Carpet industry is getting a intensified competition from the major carpet
producing countries viz. Iran, Pakistan etc.
 Problems due to decentralized and unorganized sector(lack of management)
 Facilitate adequate infrastructure, communication channels for marketing, proper
finance assistance to Indian exporters for the quantitative and qualitative improvement
of Indian carpet industry

6.  Looms are scattered: Looms scattered in the villages & no such production time on a
particular loom for a particular quality of carpet so if the looms are installed in shed
under the campus then not only it will improve productivity but also help to monitor
and plan the production and keeping the secrecy of design
 Shortage of Indian carpet grade wool : It is important not only to increase wool production but
also maintain wool quality. For this purpose breed improvement through selective breeding
should be done.
 Quality consistency is essential to remain competitive in the overseas market which can
be maintained by use of required quality wool, proper blend proposition, weaving by
the skilled weaver and improved processing, finishing etc.
 Emphasis should be given on the R&D activities in terms of raw material, machine
development/modification or process development/modification.
 Financial institution can help by providing adequate finances to carpet industries for
technology updradation and put low interest rate on export finance in order to help in
revive the carpet industry.

7.  The pie-chart shows that India commands 3rd position
in the world market of handmade carpets
 India is preceded by Iran & China.These countries are
posing a strong competition to India because of her
highly efficient production techniques
 Owing to cheap prices of carpets fromTurkey, China
etc , the demand for kashmiri carpets have dropped
down by approx 20%
 For example-prices of kashmiri carpets range from
Rs 1000 to Rs 2000 but on the other hand Chinese
carpets of same type range from Rs 150 to Rs 400
posing a tough competition

8. Strengths
• Artistic Skills
• Labour cost low as compared to Iran,
Turkey etc
• Innovative designs. Countries like china
which produce low-cost carpets lack in
innovation
• Flexibility in terms of wide range of
carpets
Weaknesses
• Unorganized markets leads to delayed
deliveries also high production costs
• Lack of proper marketing channels
• Very poor infrastructure leading to
higher time for production and costs
• Outdated technology
• Unhealthy Internal Competition
• Intellectual Property Rights
Opportunities
• Home Furnishing market for low-end
carpets
• Youth Market
• Advantage over china(by
differentiation)
• Increased demand through cutting
prices using modern technologies
• Big retailers and organized market can
offer new and large market
Threats
• Low end carpets from china- a tough
competition
• Backlash because of issues like child
labor etc
• Unhealthy competition

9.  Improving the market channels- Use of E-Commerce-can eliminate the middleman and hence
increased benefits to manufacturers
 Better technology- Increased use of computer aided design cutting methods
 Flexible price range so as to attract a wide variety of customers
 Give training to artisans to enable them to produce and manufacture better products
 Continuous innovations based on various countries culture which will attract more foreign
consumers
 Making them easily available by removing extra duties-Sales tax/VAT etc
 Improving the situation of raw material which is the major hindrance in its growth

10. THANK YOU