Issue: #2 | May 2014

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Fab India The journey from a
Lab to Fab
ICT: Bridging the Gender Divide Fiinobservaon of Internaonal
Days
In this issue:
Seminar on The Companies Act,
2013
ROAD TO
ENDLESS OPPORTUNITIES
Hear the inuencers talk

The role of corporaons should be innovave and

hel p devi se cost eecve, i mpl ementabl e
strategies that work on the ground. The quest for
numbers for corporaons should align with ethical
social responsibility.
The world is beset with enormous problems. And
as a nonprot, NGO, foundaon, impact investor,
or socially responsible company, your organizaon
is on a mission to solve them.
- Marc Epstein,
Author of Measuring and Improving Social Impacts
Keepi ng the CSR and busi ness separate has
resulted in a general percepon that in business
one would do something commercially, potenally
not so producve and useful , perhaps even
damaging and pay a lile bit through CSR.
-Nachiket Mor,
Reserve Bank of India
Fiinovaon and FKCCI collaborate for the
'The Companies Act, 2013' seminar
01
We thought small schools were the answer but it
turns out that it doesn't really maer what size the
class is, you need a great teacher in front of the
classroom.
- Melinda Gates,
Bill and Melinda Gates Foundaon
New Delhi: Fiinovation collaborated with the Federation of Karnataka
Chambers of Commerce & Industry (FKCCI) and the Institute of
Company Secretaries of India (ICSI), Bangalore Chapter for a
seminar on 'The Companies Act' on May 2, 2014 at Bangalore. The
event was attended by over 200 participants that included audit
professionals and corporate representatives who remained
engrossed through the event that was hosted at Hotel Le Meridien,
Bangalore. The inaugural session had ofce bearers of FKCCI and
ICSI who helped 'dissect the Companies Act'.
Mr. S. Chakraborty, Fiinovation, a speaker at the conference
reiterated for an increased 'focus on whom instead of what' while
looking at businesses today. He highlighted the importance of
incorporating the perspective of the consumer who should associate
with the brand. The need for an equilibrium which is 'socialistic
capitalism' is important said Mr Chakraborty who also suggested 'the
role of corporations should be innovative and help devise cost
effective, implementable strategies that work on the ground.' He
ascertained 'the quest for numbers for corporations should align with
ethical social responsibility.'
Speaking at the occasion, K Ravi, Chairman, Corporate Laws, CSR &
Capital Markets Committee, FKCCI shared his view of The
Companies Act 2013 being 'simpler and shorter with all clauses in
309 pages'. He advocated employing it to for an advantage. Linking
corporate social responsibility (CSR) to individual social
responsibility, Mr. K G Raghavan explained it as 'old wine in new
bottle.'
The Chief Guest M.R. Bhat, Registrar of Companies (ROC) for
Karnataka explained how the Ministry of Corporate Affairs is now
looking into the 'deluge of representations' received from companies
and their auditors about the new clauses of the law. Clearing doubts
about the prescribed penalties, imprisonments and sections on the
prosecution by special courts, Mr. Bhat viewed them as a medium to
'avert or reduce corporate scams.'
Addressing the issue of Independent Directors & Women Directors in
India, Prof. Vasanthi Srinivasan, IIM-B described the situation as one
of 'shame and altruism.'
Lawyers from S.R. Batliboi & Associates and Amarchand Mangaldas
thoroughly examined separate clauses of the Act specically those
related to Accounts & Audits and SFIO.
The seminar helped create a platform for Chartered accountants to
understand the Act and its provisions. It reiterated the signicance of
CA's to uphold nancial probity and bring corporate governance on a
-Aditi Tewari
- S. Chakraborty,
Fiinovaon
Fab India The journey from a Lab to Fab
John Bissell in 1960 established Fab India to develop India's potential in the
emerging textile industry. The objective was to amalgamate the best practices of
East and West. The model posed an opportunity to showcase India's handloom
textiles to the global market that provided equitable livelihood opportunities to rural
artisans.
William Bissell, the son of John Bissell gave shape to his father's vision. He was a
believer of social entrepreneurship and deemed it as a key for development. He
started his journey with over a 1000 weavers of the village Chanderi in Ashok Nagar
district of Madhya Pradesh. His interactions with them made him understand the
challenges they face with regard to low rainfall in the region and the slow
disappearance of the cherished fabric of Chanderi. William worked with the
people, motivated them and convinced them of his vision. The process included
introducing the community to the concept of shares in a Community Owned
Company (COC). The community became shareholders, the essence of which was
explained to the people. This paved the path for Fab India which had started as an
experiment. The parallel timeline explains the journey from 1960 to the end of 2010.
India is not a poor country, it is a
poorly run country.
In two to three years, al l our
employees and suppliers will be
shareholders in Fab India.
William Bissell
02
- Rahul Choudhury
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Fab India Founded by John Bissell
First Store in Delhi
William Bissell returns to India after
nishing college in Wesleyan
University
William Joins Fab India
Second Store in Delhi
First store outside Delhi (Bangalore)
John Bissell passes away
William Bissell takes over as MD
Fab India Launches its Home
Furniture Range
Rs 24 cr to 100 cr in 2 years. Opens
its rst store in a Mall (Spencer
Plaza, Chennai)
Organic Food Introduced
William again decides to increase
revenue upto Rs 240 cr in 4 years,
meets target in two years.
Launches personal care products
William plans to create 1 lakh jobs,
sets up AMFPL to invest in 17
community owned companies
Handcrafted Jewellery Launched
Fab India acquires 25 percent in
EAST, UK based retail brand
Over 120 St ores, i ncl udi ng 6
overseas, Revenue Rs 300 crores
1. 2. 3. 4. 5. 6.
Over the years Fab India has shifted its focus from being an export house to
becoming a successful retail business that presents Indian textiles in a variety of
natural bers. This ingenious model reaped many benets for the rural artisans
which did not restrict themselves to just economic terms. The value of their shares
increased and provided them enhanced dividends. The artisans are provided loans
arranged through banks. The artisans use the credit to buy new looms or expand
production.
The biggest difference Fab India made through its entry was that it started sourcing
fabric worth Rs 1 crore from Chanderi itself. Today its annual turnover is over Rs
300 crore that includes 90 per cent of domestic sales.
As of today, Fab India sources its products from over 15000 craft persons and
artisans across India. They support the craft traditions of India by providing a
market and thereby encourage and sustain rural employment. Today they have
retail outlets in all major cities of India (120 at last count) in addition to international
stores in Rome, Italy, Dubai, UAE and Guangzhou, China.
ICT: Bridging the Gender Divide
03
- British companies would contribute as much as 100 million pounds per year for Corporate Social Responsibility (CSR) going in
India by The Companies Act, 2013.
- India is now ADB's fourth largest shareholder. Since the start of its lending operations in 1986, ADB has approved 210 loans
amounting to $31.5 billion, $173.8 million for 10 grants and $262 million for 348 technical assistance projects as of 31 December
2013.
- India's share in R&D spending to the total global R&D spending stands at 2.1% while the share of China is 12.5%.
- In 2007, there were 380 parts per million of carbon dioxide in the atmosphere, which exceeds the natural range of the past
650,000 years.
- India's total expenditure on health per capita was $157 in the year 2012.
Food For Thought...
The informal sector in India accounts for 90% of women who indulge in
economic activities. These women specialize in an array of
occupations ranging from weaving, sewing, vending, rolling cigarettes
and handicrafts. It is well known that the nature of their employment is
not regularized barring them from any benets. Thus, their struggle to
earn a livelihood makes them susceptible to vulnerabilities. In this
regard poverty alleviation programmes prove to be viable solutions
which help address their life challenges. Alternative models of poverty
redressal like Information, Communication and Technology (ICT) is
gaining relevance.
For the last 20 years, India has actively used ICT for development
across all its programmes. Women's empowerment has been a core
issue for India considering the current grim scenario. ICT is being
utilized as medium to encourage and promote interaction within the
women community. It functions by highlighting their situation and
creates awareness by identifying possible solutions. Few examples of
programmes running under ICT are India Shop, an ecommerce
website in Tamil Nadu, designed to sell products made by rural women
cooperatives, Sewa's community learning centres, school of science
and technology and the Theli Phone Project have had positive
impacts. Due to such interventions women have been successful in
selling their home produced goods at competitive prices in domestic
and foreign markets.
Sewas ICT school for women empowerment emphasizes upon
building the skills of the rural women through various vocational
courses. Text boxes on the side explain the nature and location of the
initiative.
This programme has empowered more than 8,000 rural women and
communi t y members by t eachi ng t hem comput er ski l l s.
Approximately 800 women have started their own micro enterprise initiatives in a range of activities like hardware repairing
photography, screen printing and data entry. About 1100 women have been recognized as master trainers. This programme has
generated employment for 1764 trainees in ICT sector and 926 in non-ICT sectors.
Even though this initiative has had a signicant impact yet there are some loopholes of accessibility in ICT initiatives. This
inaccessibility is detrimental for its holistic success. Women's accessibility to these initiatives is determined by various social
determinants such as gender, education and livelihood among others. Therefore, future research for ICT must look at making
technology accessible and suitable for women.
- Ankita Dash
Vocaonal courses available at ICT school for
Women Empowerment
Locaon of Sewas ICT school for Women Empowerment
Journalism, Telly Caller Training, Voice & Video Eding, GIS, DTP & Web
Designing, Accounng, Screen Prinng,Language Training & Computer
Training.
04
Fiinobservation of International Days
WHO ear mar k ed 7t h Apr i l as
International World Health Day to attain
the echelon of health with happiness.
The day draws attention globally
towards specic health issues existing
and percolating in the system.
This year's WHO theme was Vector
Borne Diseases- particularly Malaria.
According to the WHO epidemiology
report of 2013 there were approx. 207
mi l l i on cases of mal ari a and an
estimate of 627,000 malarial deaths
reported. This is indicative of the fact
that despite considerable advances in
t er ms of pr event i on & cont r ol
measures, there is still lot to be
achieved in order to reduce and control
the spread of the disease. Malaria has a
large impact in poor countries because
of its interaction with malnutrition.
Worl d Heal th Day ai ms to rai se
awareness about the threat posed by
vectors and vector-borne diseases and
to stimulate families and communities
to take preventive measures.
World Health Day
7th April
The International Mother Earth Day came
into force in 2009, after the United Nations
General Assembly passed a resolution that
was endorsed by over 50 member nations.
It is celebrated on the 22nd April. This day
is celebrated as a platform to give
everyone a chance to promote harmony
with nature and to safeguard earth.
Mankind have been relatively slow to
respond to the crisis posed by global
warming looming over our head and the
damage that has been caused due to
anthropogenic activities. The day marks
the interdependency of all living species
and the planet that we all inhibit. The theme
for this year is Green Cities and focus is
on mobilizing millions of people to create a
sustainable, healthy environment by
greening communities worldwide.
Economi c gr owt h associ at ed wi t h
unsustainable patterns of consumption
and production is hindering the quest for
harmony, both wi thi n and between
societies, as well as between humankind
and the natural environment. The effective
i mpl ementati on of the outcomes of
scientic research can support, among
other thi ngs, efci ent uti l i zati on of
resources, environmental protection and
poverty eradication.
Internaonal Mother Earth Day
22nd April
6t h Apr i l , 2014 was t he r s t
I nt er nat i onal Day of Spor t s f or
Development and Peace. Sports is
viewed as a common denominator
which breaks down all barriers. Ban Ki-
moon, the UN Secretary-General,
advocates for sports as a worldwide
industry that is a powerful tool for
progress and development. It is an
important component for the holistic
development of youth as they promote
their physical, mental and emotional
well being. Sports also helps build
social connections and promotes world
peace and harmony. It teaches the
values of effort, victory and defeat. It is
also about bridging the cultural and
ethnic divides.
Sports could serve as a practical tool to
s uppor t t he ac hi ev ement s of
Mi l l enni um Devel opment Goal s.
Research suggests the use of sports as
a tool for social mobilization and
advocacy. Sports has been utilized in
countries like Liberia, South Korea,
South Africa etc and has worked well in
promoting social and global integration
About Fiinovaon
Fiinovation, a research based organization, is an integrated solution enabler in the CSR and sustainability domain. It is focused towards enhancing quality across
organizational value chain through meaningful innovation thereby ensuring sustainability. It is Asia's rst proposal research laboratory wherein research is focused
primarily on four sectors, which include Health, Education, Livelihood and Environment. Work is done through different practices namely: CSR-CSO partnership,
CSR Policy design, programme design & management, impact assessment, and sustainability assessment and sustainability reporting.
Fiinovation
24/30, Ground Floor, Okhla Industrial Estate, Phase III New Delhi - 110020, Delhi
Phone: 011-42332200 | Fax : 011-42332205
To know more please visit our website: www.inovation.co.in | Email: [email protected]
Internaonal Day of Sports
for Development and Peace
6th April
- Kumar Anshuman - Rahul Choudhury - Dr. Shilpa Jain