This document provides an overview of Khadi, a hand-spun and hand-woven cloth, and the Khadi and Village Industries Commission (KVIC) in India. It discusses that Khadi employs over 1 million artisans, 80% of whom are women. It outlines Khadi's production and sales figures over the last 5 years, showing increases. It also describes new initiatives to enhance production, funding, and marketing of Khadi. Challenges include a decentralized sector, low wages, and competition. The road ahead includes doubling production/earnings, retail outlet expansion, and strengthening the brand.

1. 1
WELCOME
KHADI : A HAND SPUN AND HAND WOVEN
CLOTHES
AND
VILLAGE INDUSTRIES
KHADI AND VILLAGE INDUSTRIES COMMISSION
MICRO, SMALL AND MEDIUM ENTERPRISES
(GOVT. OF INDIA)
3, GRAMODAYA, IRLA ROAD, VILE PARLE (W), MUMBAI-56

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Overview of Khadi

3. 3
Overview of Khadi
Khadi’ is the proud legacy of the Father of the Nation.
Khadi is ethical as well as ethnic.
The USP of Khadi is that
It is natural, hand crafted, bio-degradable, non-exploitive and having
zero carbon footprint.
KVIC was established to leverage these unique characteristics of
Khadi for economic up-liftment of rural artisans.

4. 4
 The assistances provided through various schemes of KVIC are
enabling Khadi institutions in providing employment opportunities
to over one million traditional artisans living in the rural areas.
 Around 80 % of Khadi artisans are women and every third Khadi
artisan belongs to socially backward communities.
Overview of Khadi

5. 5
Overview of Khadi
Performance - last 5 years
Year
Production
Sales
(Rs.in crore)
Emp.
(lakh
persons)
Earning
s
(Rs. in crore)
Qty.
(in million
sq.mtrs.)
Value
(Rs.in crore)
2010-11 85.95 673.01 917.26 10.15 436.57
2011-12 88.73 716.98 967.87 10.45 449.03
2012-13 90.98 761.93 1021.56 10.71 459.18
2013-14 93.25 811.08 1081.04 10.98 469.56
2014-15 95.19 879.98 1170.38 11.06 519.20

6. 6
Status of Khadi Sector
Number of KIs 2,223
No. of Weavers 1.42 lakh persons
No. of Spinners 8.62 lakh persons
No. of Charkhas 9.60 lakh approx.
No. of Looms 1.51 lakh approx.
No. of artisans covered under Janashree
Bima Yojana
2.93 lakh artisans covered
No. of artisans opened bank accounts 3.42 lakh artisans
No. of outlets 7050
Central Sliver Plants (CSPs) 6
Overview of Khadi Contd.

7. 7
Location
Production Sales
Qty. Value Qty. Value
Kuttur, Kerala 2.86 620.86 297274 652.37
Chitradurga, Karnataka 7.15 1291.35 646949 1166.27
Sehore, Madhya Pradesh 8.08 1288.63 780844 1209.24
Raebareli, Uttar Pradesh 4.45 657.34 412695 628.83
Etah, Uttar Pradesh 3.05 551.41 287739 518.01
Hajipur, Bihar 1.36 306.74 97372 224.51
Total 26.95 4716.33 2522873 4399.23
Sliver/roving production and sales during 2014-15
(Qty. in lakh kg., Value: Rs. in lakh)
Raw Material Godown Facilities :
CSP, Sehore: Dausa (Rajasthan), Surendranagar (Gujarat)
CSP, Etah: Bijnour (UP), Kanhewali (UK), Kurukshetra (Haryana)
CSP, Chitradurga: Metpally (AP)
CSP, Kuttur: Trivandrum (Kerala), Murshidabad (West Bengal)
Overview of Khadi

8. 8
New Initiatives

9. 9
New Initiatives
Initiatives for enhancing production of Khadi
Raw material supply and management :
KIs have been advised to procure their required raw material from
KVIC’s Departmental CSPs only and approach outside agency if the
raw material required by them is not produced by CSPs.
KVIC has advised the Project Managers to provide sliver/roving as
per the requirement schedule of KIs. The CSPs are now running in
three shifts.

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 Higher capacity utilization of CSPs have brought down the price of
roving about 8 to 10%.
 KVIC have requested Ministry to approve a proposal for
refurbishment of CSPs out of KRDP fund. The refurbishment of
the plants will increase their installed capacity and also bring
down conversion charges further in the range of 10 to 15%.

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New Initiatives
Contd.
Funding -
 KVIC has simplified the system of Khadi budgeting to assign target
of production and sales to the institution. The State offices have
been authorized to assign the Annual Budget and Central office
only ratifies their action. This system has cut down the time lag in
budgeting.
 The system is being further simplified giving boost to the KIs in
doubling Khadi production, utilizing their resources to the
maximum extent.
 Pro-active arrangement has been made in providing khadi plan
fund and KVIC in turn released the interest subsidy portion of the
bank finance availed by KIs timely.

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New Initiatives
Contd.
Khadi Marketing -
Earlier, Khadi Institutions were pricing their product as per cost chart. The cost
chart method was coming in the way of market linked pricing of product to earn
requisite surplus for sustainability of khadi activities.
KVIC had issued guidelines allowing institutions for flexible pricing of their
product at all level so that the institution can earn sufficient surplus to enhance
earning of their artisans as much as possible.
Youth Centric Khadi apparel such as Denim Jeans, Jackets, Skirts, T-shirts
etc. developed. Artisans of Khadi Institutions are being trained to further
increase in the volume of such products.

13. 13
New Initiatives
Contd.
Khadi Marketing -
KVIC have advised khadi institutions to take care about the up-
keeping of their bhandars. KVIC is also making arrangement to institute
award system to motivate khadi institutions in their endeavor.
KVIC is working with the reputed retailers to offer suitable platform to
khadi institution for retailing their products through digital marketing.
KVIC have also taken up ambitious programme for mapping of Khadi
and Khadi products throughout India which will enable necessary
information about availability of product both in quality and quantity.
KVIC have issued a format seeking information from field offices and
KIs.

14. 14
New Initiatives Contd.
Implementation of Khadi Mark -
KVIC have introduced ‘Khadi Mark’ wherein producers of Khadi has to
obtain Khadi Mark Certificate for attaching Khadi Mark label with the
Khadi and Khadi product to be sold by them in the market. KVIC have
prescribed a one page application form, to facilitate KIs to apply easily.
So far, 1244 KIs have obtained Khadi Mark and Khadi Mark Labels
are helping them in better marketing of their products.

15. 15
Challenges

16. CHALLENGES
 Decentralized sector and lack of adequate database
relating to Khadi artisans, spinners, weavers etc.
 Lack of uniformity for institutional/bulk supply.
 Low wages and low productivity discouraging new
entrants to Khadi
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17. CHALLENGES
Absence of market intelligence and information relating to
latest fashion trend prevalent in domestic and international
markets.
Opening up of market and global competition in the
domestic market offering tough competition to Khadi &
Village Industries products.
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18. PROVIDING GENUINE KHADI TO
CUSTOMER
 Many shops sell textile attaching name Khadi while those are
not hand spun hand woven.
 Earlier KVIC did not have any regulatory power to restrain
those and in many cities such shops mushroomed.
 This situation has been eating away the market of genuine
Khadi and its share is sizable.
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19. PROVIDING GENUINE KHADI TO
CUSTOMER
 KVIC under KRDP arranged implementation of Khadi Mark
Regulations 2013, which provides every trader/seller of Khadi
should obtain Khadi Mark and attach Khadi Mark label on all
Khadi products.
 Stringent action needs to be initiated against sales outlets or
commercial establishments that sale spurious khadi.
 KVIC is making all efforts to plug sale of spurious textile in the
name of Khadi.
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20. 20
Road Ahead

21. ROAD AHEAD
 Doubling Khadi production and sales, doubling earning of
spinners and weavers.
 Modernization of existing “Khadi Retail Outlets”.
 Opening of ten new ‘Khadi Retail Outlets’ across the country.
 Display of large size ‘Charkha’ at Terminal -3 of New Delhi
Airport to inculcate the ideology of Khadi.

22. ROAD AHEAD
 Opening of ‘Khadi Retail Outlets’ at New Delhi and Mumbai
Airports.
 Strengthening of Government Supply.
 Creation of Data base of KIs, artisans and all sales outlets.
 Coverage of all eligible Khadi artisans under social security
benefit schemes viz. Prime Minister Suraksha Bima Yojana
(PMSBY) & Prime Minister Jeevan Jyoti Bima Yojana
(PMJJBY).

23. ROAD AHEAD
 Launching of e-commerce and introduction of franchisee
scheme to market KVI products.
 Development of Khadi brand and engage professional
consultant to create and promote brand publicity.
 Develop uniform eco-friendly packaging for KVI products with
logo and specified colour, size, etc.
 Development of solar charkha.

24. THANK YOU
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