DIAGNOSTIC STUDY OF HANDLOOM

1 SUB-SECTOR
IN MAHABUBNAGAR & NALGONDA DISTRICTS OF
ANDHRA PRADESH.

(Draft Submitted to EGMM For Comments)

Submitted to
Employment Generation Marketing Mission (EGMM), Department of
Rural Development, Govt. of Andhra Pradesh
Submitted by

ACCESS Development Services,

1
 1-8-450/1, B 18, Indian Airlines Colony, Prakashnagar, Begumpet,
Hyderabad 500003, Andhra Pradesh

DIAGNOSTIC STUDY OF HANDLOOM SUB-SECTOR IN MAHABUBNAGAR,

NALGONDA DISTRICTS OF ANDHRA PRADESH

Section Content Page

No No

Cover Page, Contents, List of Abbreviations 1-4

1.0 Introduction 5
1.1 Background 6
1.2 Observations in pre-diagnostic survey 6
1.3 Understanding of the project 7
2.0 Overview of the Sector 8
2.1 All India 9
2.2 Andhra Pradesh 10
3.0 Diagnostic Study Methodology 11
3.1 Profile of the Cluster 12
3.2 Production Process and Turnover 13
3.3 Cluster History 15
3.4 Background, Factors leading to Cluster Emergence 16
4.0 Diagnostic Study Findings 16
4.1 Household Information 16
4.2 Analysis of Business Operations 17
5.0 Value Chain Analysis and Flow Chart 20
5.1 Cluster Value Chain Actors and their Roles 21
6.0 Inter- Enterprise Linkages 25
7.0 SWOT Analysis 26
8.0 Cluster Level Support Institutions 29
9.0 Key Issues in Thematic Area 31
10.0 Institutional Matrix 32
11.0 Proposed Action Plan 32
11.1 Vision, Goal & Objectives 32
11.2 Project implementation strategy 33
11.3 Service Delivery Framework 34
11.4 Expected Outputs and Project Deliverables 34
11.5 Marketing Strategy for Handloom Products 35
11.6 Exit Plan & Empowering Institutions & Cluster Consortia
12.0 Budget & Project Duration 35/36
Annexure :
Annexure1 List of Respondents 43
Annexure 2 Questionnaires 51
Annexure 3 List of Stakeholders met during the survey 65

2
List of Abbreviations:

ADS : ACCESS Development Services

APCO : Andhra Pradesh State Cooperative Handloom Weavers Society
AIHCS : All India Handloom Cooperative
BDSP : Business Development Service Provider
BIDA : Bhadohi Industrial Development Authority
BoB : Bank of Baroda
BMOs : Business Management Organizations
BHU : Banaras Hindu University
CEPC : Carpet Export Promotion Council
CC : Cluster Consortium
CC : Cash Credit limits
CAD : Computer Aided
CFC : Common Facility Center Center
C&F : Carrying and Forwarding
DFID : Department for International Development
DSR : Diagnostic Study Report
DHs : Dye Houses
Diz : Designers
DIC : District Industries Center
DC-H : Development Commissioner, Handicrafts
EOR : End of Project Report
ETP : Effluent Treatment Plant
EDP : Entrepreneurship Development Programme
EGMM : Employment Generation Marketing Machine
FI : Financial Institutions
HO : Head Office
HDFC : Housing Development Finance Corporation
HRD : Human Resource Development
IICT : Indian Institute of Carpet Technology
IDBI : Industrial Development Bank of India
ICICI : Industrial Credit Investment Corporation of India
ICAI : Indian Chartered Accountancy Institute
IHCDP : Integrated Handloom Cluster Development Progrmme
IKP : Indira Kranti Pathkam
IREDA : Indian Renewable Energy Development Agency
IIT : Indian Institute of Technology
KVIC : Khadi & Village Industries Commission
M&E : Monitoring and Evaluation
MSME-DI : Micro Small and Medium Enterprises-Development Institute
MOU : Memorandum of Understanding
MAFs : Manufacturing Export Firms

3
MT : Metric Ton
MSE-CDP : Micro Small Enterprises-Cluster Development Programme
M&SEC : Marketing and Service Extension Center
MAFs : Merchant Export Firms
M/Cs : Machine suppliers
MMS : Mandal Mahila Samakya
NABARD : National Bank for Agriculture and Rural Development
NGO : Non Government Organization
NIFT : National Institute of Fashion Technology
NID : National Institute of Designing
PCB : Pollution Control Board
PMRY : Prime Minister Rojgar Yojna
PFs : Principal Firms
PMEGP : Prime Minister Employment Guarantee Programme
PMD : Project Management Division
PBDs : Private BDS providers
QC : Quality Control
R&D : Research and Development
RD : Rural Development
RMs : Raw Material suppliers
SHG : Self Help Group
SSI : Small Scale Industries
SWOT : Strengths, Weaknesses, Opportunities and Threats
SMEs : Small & Micro Enterprises
SPV : Special Purpose Vehicle
SME : Small and Medium Enterprises
SIDBI : Small Industries Development Bank of India
TMFs : Tiny Manufacturing Firms
TDS : Total Dissolved Solid
TC : Textile Committee
TETC : Technical Education and Training Centers
USD : United State Dollar
US : United State
USA : United State of America
UK : United Kingdom
UCO Bank : United Commercial Bank
UNIDO : United Nations Industrial Development Organization
VO : Village Organization
WSC : Weavers Service Center
WDWP : Who Does Who Pays Matrix
ZMS : Zilla Mahila Samakya

4
 DIAGNOSTIC STUDY OF HANDLOOM SUB-SECTOR IN MAHABUBNAGAR,
NALGONDA DISTRICTS OF ANDHRA PRADESH

1.0 Introduction:
The districts of Mahbubnagar and Nalgonda have large handloom weaving community
manufacturing handloom textiles for many decades. The SHGs in handloom clusters in these
districts have been supported by the Government for many years and the progress has been
significant. However, the cluster approach to scale up infrastructural and production chain
of SHG clusters in Handloom Textiles, has not kept pace with the modernization and
development taking place in the sector. Consequently, there has not been any addition of
fresh impetus of development and optimum realization of output in the sector, which is
the backbone of long traditional weaving heritage and cultural linkages. The prospects of
Handloom sector lie in infrastructure up gradation, modernization of the machinery,
product diversification, innovative manufacturing as well as design know-how,
supplemented by brand building of the native products that would lead to niche market
for the products manufactured by the clusters.

In order to understand the present status of Handloom sub-sector in these districts a study was
undertaken with the support of Ministry of Rural Development, Govt of Andhra Pradesh. The
Handloom clusters covered include two mandals each in Mahbubnagar, Nalgonda , seventeen
Gram Panchayats covering 19 clusters and 119 enterprises. The total artisans involved in the
clusters are 1324. The list of mandals/villages included in the study is enclosed in Annexure
1. The clusters are at a distance of approximately 40 Km from the district headquarters in both
the districts. The district clusters are 100-130 Km from Hyderabad the state capital.
Mahbubnagar and Nalgonda are part of Telangana region in Andhra Pradesh. Mahbubnagar
lies between 15 Degrees 55’and 17 Degrees 29’ N latitude 77 Degrees 15’and 79 Degrees
15’ E longitude, while Nalgonda lies between 17 Degrees 06’’ N latitude and 79 Degrees
18’’ E longitude.

Nalgonda

5
 Details Mahbubnagar Nalgonda Andhra Pradesh
Area (Sq Km) 18432 14200 275069
Mandals (No) 64 59 1104
Villages (No) 1475 1119 26613
Population (Lakh) 35.14 32.48 762.10
Male (Lakh) 17.82 16.52 385.27
Female (Lakhs) 17.81 15.96 376.83
Density/Sq Km 191 228 277
Rural(%) 89.43 86.72 72.69
Literacy (%) 44.4 65.0 60.47
Male(%) 56.63 75.0 70.32
Female(%) 31.89 55.0 50.43
Gross Crop Area (Lakh Ha) 8.77 4.78 138.38
Rain Fall in mm(Normal) 604 751 934

Source: AP Online, AP Govt website.

1.1Background:
Government of Andhra Pradesh, over the years, through Rural Development Department
(DRDA) supported Self Help Groups (SHG) members, converting them in to rural
entrepreneurs. Enterprises have come up in non-farm livelihood sectors- like Textiles,
Handicrafts, Jewellery, Toys, and Chemical and Mineral, Forest based, Leather, Food
products, Agro/ Horticultural based, Fisheries etc. The sector components could be
further split into 100 different subsectors. The SHGs are formed by Society for
Elimination of Rural Poverty (SERP) a body under Rural Development Department of
Government of Andhra Pradesh. The other organization under the Department,
Employment Generation and Marketing Mission (EGMM) creates employment for SHG
member’s families, and supports non-farm livelihoods.
Over one Lakh SHGs exist in the state consisting of 120 Lakh women members. These
SHGs are federated at the village, sub district and district level. They carry out number of
livelihood/ social activities. About 1.5 Lakh persons are employed in over 30,000
enterprises in the villages. The entrepreneurs have developed market linkage with local
and district level retail and whole sellers to sell their products. They have also developed
links with raw material suppliers for the products manufactured by them. The EGMM is
promoting subsector based livelihood clusters in the state by strengthening the SHG
enterprises, building infrastructure, linking markets, providing credit, technology, skills,
design, institutional development etc. The units have been able to sell products in the

6
local and district level markets. However, their penetration to larger markets is limited in
terms of fine tuning of their skills for better product development & quality, improved
management, infrastructure progress, superior tools and machinery, easy access to credit
(since they are not legally registered bodies), wider market reach , better packaging,
branding etc.

1.2Observations in Pre-Diagnostic Survey:

As a pre-cursor to commencement of the assignment, the team from ACCESS undertook
a brief pre-diagnostic assessment of clusters/enterprises and sub-sectors in Amarchinta
village in Atmakur Mandal, Mahbubnagar district. The objective of this pre-diagnostic
study was to understand the ground realities of the present situation of
clusters/enterprises, involvement of SHGs/enterprises in respective value chains, current
income levels of enterprises, artisan needs, present as well as future, existing financing
structure and availability.

 Atmakur mandal has a population of 55,686. The Mandal has literacy of 43% and
about 1000 families are involved in handloom industry. Currently only 50% of the
families are pursuing the trade and the remaining shifted to other livelihoods. The
families that discontinued the traditional livelihood are from silk sari manufacturers.
A combination of factors like increase in raw material cost, inadequate returns, lack of
marketing avenues, stiff competition contributed to their exit from the handloom
sector. The actual figures on the families could not be collected.
 Most of the families are involved in full value addition – converting thread to yarn
and thereafter to fabric and finished products like saris (including Zari work), dhotis
and shirts. Each family, on an average, has a sales turnover of Rs.One Lakh per month
with a 10% net income. Of this turnover, 60% is contributed by weaving and 40% is
through trading. About 60 such families operate on this model in the village. These
families apart from producing their own saris also collect from other producers for
marketing in twin cities of Hyderabad and Secunderabad. Data on turnover, costing of
the product, margins, sales information at the SHG level was not available.
 There are about 200 SHGs with about 3000 members covered by 5 Village Officers
(VO) from SERP. Each VO, on an average, supervises 40 SHG. There are only 3
SHGs exclusively involved in handlooms, rest have mixed businesses models as
diverse as dairy, pottery, carpentry, blacksmith, kirana shop, bidis, , bamboo weaving,
paper plates, etc. Again Information on Handlooms at the SHG level is not available
as most of the SHGs are involved in diverse activities.
 Of the total loans availed by SHGs, 40% are defaulters, of which only 5% is
accounted by weavers. The SHG members also borrow from other sources like
micro-finance institutions, money lenders etc. There is no information on the total
exposure of credit of the members.
 It takes about 15 days to weave a silk sari, 4 days for cotton sari, 1 day for polyester
sari. The designing cost is between Rs.1000-50,000/-. This is entirely spent by the
producer and they have to sell about 50 saris to recover the cost. If the finished
product of a particular design does not sell, the producer has to offer a discount of 5-
10% to the shop owner.

7
 General impressions of SHG members involved in handloom business was: i) design
inputs required to get more variety in the finished product ii) power looms give better
productivity & finish iii) Support for market outreach for higher returns in handloom
products iv) branding, advertising & publicity for handloom products.

As comprehensive information on the handloom business was not available at the SHG
level a detailed diagnostic study was proposed in the districts of Nalgonda and
Mahbubnagar (Annexure 1).

1.3Understanding of the Project:

EGMM had invited applications for a ‘knowledge partner’ for undertaking Promotion of
Non- Farm based livelihood clusters with SHG enterprises (group/individual), over a
period of three years. ACCESS Development Services had submitted an application as it
has standing in the sector/industry, capacity to work with empathy with the rural poor,
ability to sustain till the profit from the unit is received, and have enough manpower with
required skills to support the units. The preliminary survey was followed up with a
proposal for detailed Diagnostic Study for ‘Cluster and Enterprise Development’ in
Mahbubnagar and Nalgonda districts. As a knowledge partner ACCESS would follow
a holistic approach towards the clusters and strengthening both backward and forward
linkages with various Govt departments. ACCESS will work in close proximity with
SERP/EGMM manpower and will provide necessary handholding in the clusters. Project
aims at increasing the profitability of the enterprise units by at least 50% within the given
time frame. Average profitability of the units could be in the range of Rs 2 Lakh a year.
The main objectives of the proposed study are:

i. Double the income of the enterprises.

ii. Double the number of employees in the enterprises

To achieve the above key objectives, it is necessary

 To enhance the competitiveness of selected handloom clusters in Mahbubnagar and

Nalgonda in terms of increased market share and ensuring increased productivity by
higher unit value realization of the products.
 To ensure effective integration of scattered artisans, building their grass roots
enterprises and linking them to SMEs in the sector to build critical mass for
customized interventions and ensure economies of scale in operations. This will build
a supply system that is geared to responding to large-scale orders, adhering to quality
and product standardization, which are pre-requisites of national markets.
 To generate additional livelihood opportunities to the people through specific
intervention in segmental sub sector industry and increase the incomes to the
artisans/craftsmen already engaged in this sector.
 To provide requisite support/ linkages in terms of adequate infrastructure, technology,
product diversification, design development, raw material banks, marketing &
promotion, social security and other components that are vital for sustainability of
artisans/craftsmen engaged in the handloom sector.

The core elements of the strategy would include convergence of the resources available
under various ongoing schemes of the Central/State Government, Public Private

8
Partnership (PPP) model in the form of collaboration between the Central/State
Governments, beneficiary artisans & their groups, financially creditworthy &
commercially linked marketing enterprises and the financial institutions and a Proactive
and strong technical and program management assistance for capacity building, designing
of the interventions and their implementation, through the knowledge partner. Further the
knowledge partner would ensure continuous measurable improvement in turnover of the
units supported under the programme, organise workshops, exposure visits and trainings
to increase awareness, evolve its own management system and in consultation with
EGMM develop monitoring and evaluation methodology.

2.0 Overview of the Sector:

The textile industry has been the backbone of Indian economy, in view of its significant
contribution to GDP (4%), industrial output (14%), foreign exchange earnings (1/3rd of
total foreign exchange). In the global scenario of handlooms capacity of 4.60 millions,
India is in number one position with 3.90 million (85% of total world capacity). The
Indian textiles is one of the oldest industry in the country, renowned for their fineness and
captivating colours for over 5000 years and have attracted connoisseurs from all parts of
the world.

The Handloom sector plays a vital role Indian Handloom sector during the 10th plan period
in the country’s economy. It is one of Year wise Cloth Employm Export
the second largest providers of statistics production ent in
employment after agriculture and it is (million sq Lakh
estimated that it provides direct met.
employment to 65 Lakh people who are 2004 -05 5493 70 No data
engaged in weaving and allied activities 2005 -06 5722 65 No data
through 33 Lakh looms (approx) in the 2006 -07 6108 65 No data
country. This sector annually produces 2007 -08 6541 65 No data
cloth around 6541 million sq. meters 2008 -09 6450 65 No data
which contributes nearly 20% of the Tab -1, Source: Office of Development
total cloth produced in the country and Commissioner (Handlooms), Ministry of Textiles
also adds substantially to export
earnings.

2.1All India:
Indian handloom products range from coarse cloth to very fine
fabrics from a variety of fibres such as cotton, silk, tassar,
mecesrage, jute, wool, and synthetic blends. Each region has
handcrafted textiles that are unique in design and style.
Handloom is unparalleled in its flexibility and versatility,
permitting experimentation and encouraging innovations. The
strength of handloom lies in the introducing innovative designs,
which cannot be replicated by the Power loom sector. Thus, the
handloom forms a part of the heritage of India and exemplifies
9
the richness and diversity of our country and the artistry of the weavers . There are
independent weavers, weavers organized into co-operatives, and there are those working
under master weavers.

The present scenario of the sector in India is having largest number of handlooms units in
the world, around 33 lakh, which produces approximately 6541 million sq m of handloom
cloth annually. While the total production of cloth has increased by about 30% between
1996–97 and 2004–05, the production of handloom sector has declined by about 23%.
Between 2000 and 2005, the average annual growth rate of handloom production has been
6.99%. This has hit the livelihoods of the handloom weavers. The states of West Bengal,
Tamil Nadu, Uttar Pradesh, Andhra Pradesh, Assam, and Manipur are the major
handloom cloth producing states accounting for 75% of handloom weaving in the
country. As per the second handloom Census, Andhra Pradesh (5.29 lakh), Assam (2.00
lakh), Tamilnadu (5.56 lakh) UP (5.09 lakh) West Bengal (2.56 lakh), and Manipur (3.14
lakh) together accounted for 71% of the handloom units. Almost all handloom production
in India is for domestic markets. According to the Directorate General of Handlooms,
though handlooms account for 10% of our textile exports, only 1.3% of working looms
produce fabric for export markets 1. Europe is the largest destination, accounting for nearly
half of the total exports in 1999–2000. In the terminal year of the Tenth Plan, handloom
cloth production was 6541 million sq m with exports at Rs 4605 crores as indicated in the
table no1 (tenth Plan performance)
Hope Looms
With the phasing out of quota and the Though handloom is regarded by many as a sunset
opening up of markets, ‘Handloom’ cloth industry, there are enough success stories across the
and designs are being produced cheaply by country—Self Employed Women’s Association (SEWA)
mills and power looms both in India and in in Lucknow, Kutch Mahila Samiti in Gujarat, and Dastkar
China. As the market is shrinking, weavers in Andhra Pradesh which expose this myth and show the
way forward for this sector.
are becoming manual labourers or in
extreme cases committing suicide. This has Pochampally, a small town in Nalgonda district of Andhra
Pradesh, is known for its unique Ikat design. About 50%
led many to label this industry as a sunset
of the population here depends on handlooms. In
sector. This, however, is far from the truth. December 2003, Pochampally became the first traditional
Health- and environment-friendly hand Indian craft to get a Geographical Indication (GI)
woven fabrics have a huge international registered. Less than two years later, the proprietors of the
demand and have the potential to generate GI found that a retailer in Hyderabad was selling sarees
produced by a Mumbai-based manufacturer under the
domestic demand. In the post-Multi-Fibre
false GI of ‘Pochampally’. They immediately filed a case.
Agreement era, weavers can capture new Both the retailer and the manufacturer accepted the case
markets. of infringement and agreed to an out of court settlement.
They also gave an undertaking not to sell any products in
2.2Andhra Pradesh: the name of Pochampally.
Andhra Pradesh is renowned for its fine
range of silk brocade and cotton handlooms
and exclusive designs. The looms of Venkatagiri, Pochampalli, Dharamavaram and
Narayanpet are famous for their cotton and silk sarees. In fact, Andhra Pradesh has a rich
treasure of Kalamkari style of printing. This style is carried out with the help of blocks.
Another example of this state’s individuality is seen in Gadwal saris. These saris,
generally, have the body of cotton and pallu or border in silk. This style is known
worldwide for the perfect blend of cotton and silk. One can also see gold and silver zari
work on the dress materials and saris from the state. . Another jewel in the handlooms of
Andhra Pradesh is Chirala Textile. Chirala is a place in the state which is well known for
1
National Market scheme, a study on Business plan by IL&FS for Bihar

10
producing best fabrics, dyed in different colors for giving them a distinctive look and
creativity of the weavers.
There are over 2.75 lakh functioning handlooms in the state, providing livelihood to
around 5 lakh families including dyer, sizers, warp winders, tool makers etc. The State
Government has taken several steps for the overall development of handloom industry.
Some of them are:

 Photo identity cards issued to 38 handloom weavers in Pochampalli for providing

development schemes / services directly to weavers.
 Establishment of houses and work sheds to 500 weavers supported by Eenadu group
and Agarwal foundation jointly.
 Pensions for aged weavers.
 Health insurance for the each weaver family members up to four numbers & up to
Rs.15000/- per year.
 Artisan credit cards loan up to 38 weaver in Pochampalli
 Implementing PAVALA VADDI scheme to meet the requirements of the artisans
 Sanctioned Pochampalli Handloom Park at Pochampalli, where facilities for common
production as well as domestic and export marketing are provided.

In addition to the above mentioned state government schemes, the following schemes are
also implemented by Govt. of India.2
 Project package Scheme: This will provide working capital, training for up
gradation of artisans skills in showroom and warehouse management (marketing).
 Deen Dayal Hathkarigarh Protsahan Yojana: This will support and assist training
the weavers in any new techniques of weaving and total range of handloom activities.
 Health Package Scheme: This will assist in treatment of artisans in l diseases
resulting from the profession..
 Integrated Handloom Village Development Scheme: This scheme enable to
provide common facility centers, training, purchase of new looms, housing etc.,
 Handloom Development Centre: This scheme provides Quality dyeing unit and
Training to the weavers.
 Bunkar Insurance Scheme: This scheme is for the weavers life and asset insurance.
 Economic research and Market Intelligence Unit: To organize the collection and
dissemination of information for the benefit of all for effective planning and strategy
to overcome the competition in the international market.
 Nodal Centre for up gradation of Textile Education (NCUTE): The organization
is engaged in mapping present textile education scenario at various levels of human
resource requirement, identifying the quantitative and qualitative gaps and prepares an
action plan supported by the required information to fill these gaps based on sector
wise felt needs.
 National Centre for Textile Design (NCTD): This center has been set up with
website to provide colour and trend forecasts, designs, motifs and database of
different kinds of handloom weavers, designers, exporters, machine suppliers etc.,

2
RTI information - National Handloom Development Corporation

11
 National Centre for Design and product Development for Handicrafts: This
Centre caters to the design and technology related needs of the handicrafts sector and
provide the services of reputed national and international design experts to the small
scale and cottage handicraft industry to enable them to compete in the world market.

3.0 Diagnostic Study-Methodology:

As a first step towards cluster mapping &
diagnostic study, a detailed guide note and
frame work has been prepared based on the
previous experiences in the handloom study
conducted at Amarachinta village of
Atmakur mandal in Mahaboobnagar district.
Basing on the Terms of Reference (ToR)
with EGMM, a scope of work has been
developed to conduct a diagnostic study,
which is consisting geographical area and
artisan sample size of the study in both
districts of Nalgonda and Mahaboobnagar.
The specific tools, questionnaires and EGMM sample in ToR
interview schedules prepared for the primary
data collection from artisan producers / weavers and master weavers (Annexure2&3)
were used while interviews, FGDs. This tool contains information related to the
demography, production, productivity, and value chain, and product
diversification/addition, method of processing, marketing, employment and further steps.
However, the data for the study has been collected from both primary and secondary
sources. The primary data has been collected through field research and with intensive
interaction with 271 (21%) of artisans out of the total target of 1324 EGMM beneficiaries
in 11 villages of 4 mandal of both the districts (sample is shown in the above table). Apart
from this primary data collected from literature and other published documents, electronic
news source were also referred. The number of respondents surveyed under each category
and location are summarized below in the table:

The secondary data has Stakeholder Details Numbers EGMM

been collected from the Covered Beneficiaries
handloom department, from Nalgonda , Mahaboobnagar 2 2
the old news published in Mandals 4 4
internet, magazines, news Villages 12 17
papers, journals and Weavers / Artisans 271 1324
research organizations Master Weavers 15
which deal with the Co-operative Societies 12
development of handloom Designers & Card makers 3
industry. Dyers / Traders 4
Banks (Lead Bank) 2
3.1Profile of the Cluster: Business Service providers 6
The districts of Mahbubnagar Government /NGO’s 8
and Nalgonda are having
large number of handloom weaving communities, manufacturing handloom textiles for many
decades. Historically both the districts weavers are well known to the world, due to indigenous
artisanship handloom sarees produced in Pochampalli – Ikat design it’s very unique in the

12
nature and they had the certificate of Geographical Indicator (GI) which registered under the
Intellectual Propriety Right (IPR) for Pochampalli saree. Weaving is the major livelihood in
Pochampally village. About 5000 families are currently depending on the weaving.
Weaving is the single largest livelihood occupation in the village accounting for 69% of
the total families.. In the village 2000 families are earning their livelihood as weaving
wage labourers, 800 families are having their own weaving facilities, others are working
under master weavers, traders. Also few families are working in the saree shops and
retail houses. However, all the surrounding village of Pochampalli and Ramannapet
mandal weavers are dependent on the brand of Pochampalli. Hence the master weaver
solely depend and market their product through Pochampalli traders. The sample village
details are shown in the table.

In the same way , Gadwal is one of the most famous handloom centres in
Mahaboobnagar district for the zari silk sarees. The cities of Bangalore, , Pune, Chennai,
Hyderabad, Vijayawada and Visakhapatnam are the main market hubs for Gadwall silk
sarees, There are about 1100 weaving families from 5 villages of Gattu mandal & 1500
weavers from Rajoli village/ mandal of Mahaboobnagar directly producing Gadwall
sarees and marketing as mentioned in the above cities. During the floods in the year 2010
most the loom washed-away, therefore, the Eenaadu group and Agarwal Foundation
jointly supported the looms and work-shed for 500 artisans, free of cost and they are
going to support further 500 looms in the current financial years. The proposed cluster
sample size and the details of the geographical area, weavers population, looms, master
weavers, EGMM beneficiary list for diagnostic study furnished in the following table3.

Village wise baseline data of handlooms in four mandals of Mahaboobnagar and

Nalgonda districts
District Selected Village (weaving) Looms Remarks
Mandal (No)
Mahaboobnagar Gattu Gattu 60 1020/820
Gorlakandoddi 250 Present 200 looms working
Arki doddi 350 Present 250 looms working
Macherla 350 Present 300 looms working
Penchelapadu 10
Waddepalli Rajoli 1500 During the floods 50%
looms washed out, Eenadu
group & Agarwal foundation
supported 500 looms along
with work sheds
Nalgonda Ramannpet Vellanki 400 385 looms Fabric work on
bottom for dress materials
Siripuram 400/800 100 looms working presently
Pochampalli Bogaram 100 Present 50 looms working
Ramannapet 50 Present 35 looms working
Kommaygudem 5
Munipappala 10 Present 6 looms working
Janampalli 200 Present 50 looms working
Thummaigudem 50 Present 10 looms working
Pochampalli 5500 Presently working 3500
3
Consolidated Information from cooperatives, interactions with master weavers and govt. institutions like
NABARD/LBM/DIC

13
 looms
Muktapur 50
Julur 20
Revanapalli 50
Jalalpur 60
Sivareddygudem 30
Vankamamidi 50
Allinagar 15
Bhimanpalli 35
Sivayapalli 15 6240
Total 24 9560

3.2Production Process & Turnover :

Type of products and volume in both the districts (4 mandals)
Products Looms Annual Sale Price each piece Average Annual
(No) Production (Minimum – Turnover
(No) Maximum) (Rs) (Rs. )
Pochampalli Silk Saree 4250 153000 2500 – 6500 688500000
Pochampalli Mecesrage 450 500 -1500
Cotton Saree 16200 16200000
Gadwal Silk Saree 1300 46800 2000 – 7000 210600000
Gadwal Cotton Saree 190 6840 1200 -1800 10260000
Cotton Bed sheet 40 11520 250 – 750 5760000
Dress Materials 50 19200 120 – 250 3552000
Towels 10 480
Dupattas 100 No data No data
Fabric works (bottom) 300 254040
Total turnover of the Cluster in four Mandals & 2 Districts 934872000

The annual business turnover of the cluster in four mandals of Mahaboobnagar and
Nalgonda is approximately Rs. 94 Crore. Out of which Raw materials cost is the major
portion around 72% and the rest 28% is on wage labour. (See the graphs). Raw material
for Silk Sarees includes Yarn, Colours, Zari, border, soda, soaps, Tinopal (Whitener),
bleaching powder and starch. The Zari required for Sarees is procured from Bangalore,
Dharmavaram, Pochampalli in Andhra Pradesh, Surat in Gujarat and Pune in Maharashtra.

The yarn requirement for a set of

eight silk sarees of 5.5 yards each is
approximately 5.250 Kg (silk &
wept). For warp (lengthwise)
threads approximately one
Kilogram is required where as for
wept (across) threads
approximately 4.250 Kg is required.
Traders charge a margin of Rs.70
per Kg over the mill prices of yarn.
In Karnataka Bangalore is the main
mulberry silk yarn production
center. All the silk supplied to
Nalgonda, Gadwal is from Bangalore. But the channel through which it reaches
Pochampally is different. There are three channels that supply silk – SERIFED,
Karnataka Silk Board, both situated in Pochampally and the private traders located in

14
Bangalore. Approximately 300 Kgs of silk yarn comes into Pochampally everyday from
Bangalore. Of this 20% i.e. 60 Kgs of yarn is used locally in Pochampally and rest 80%
goes out to different silk production centers in Nalgonda and Mahaboobnagar districts.

Colours are procured from

Secunderabad traders, who in
turn procure them from
Mumbai. Colour traders come
to the villages directly to sell
the material; also some of the
colour sellers are located in
Pochampally itself. The cost of
colour varies between Rs.400 to
Rs.800 depending on the
colour/grade. Each silk saree
requires approximately Seventy
rupees worth of colours and the
reaming part is artisan work.

The weaver proceeds step

wise like dying, colouring;
thread rolling, sketch
marking, rubber rolling,
designing, quality check
and weaving in the
production process. It is
observed that in
manufacturing process
48% of job is confined to
weaving on the loom and 30% of time is spent on dyeing & colouring. The products reach
the market though various channels and the middlemen form a major part and play
different kind of roles. On one hand they act as a backward linkage through supply of
yarn and on the other hand they explore the markets for the weavers and master weavers.

3.3Cluster History:
The historical perspective of the cluster weaves around the cooperative societies
promoted by the state and the artisans themselves in both the districts. The cooperative
movement mainly contributed to the evolution of the cluster in the present form. Details
of the cooperative societies in the district are given in the following table.

Details of Existing Cooperatives in Four mandals Mahbubnagar & Nalgonda

Mandal Village Name of the Cooperative Members Present Status
(No)
Mahaboobnagar :
Waddepalli Rajoli Rajoli Handloom Weavers 613 Defunct
Cooperative Society
Gattu Macherla Macherla Handloom Cooperative Defunct
Society

15
 Gattu Arigedda Aragidda Handloom Weavers Defunct
Cooperative society
Gattu Gattu Mixed fabric Handloom Weavers Defunct
Cooperative society
Gattu Gattu Sri.Neelakanteshwara Handloom Defunct
Society
Nalgonda:
Ramannapet Ramannapet Terri Cotton Handloom weavers 25 Un registered
Cooperative Society
Ramannapet Ramannapet Chetana Colour Weavers Society 5 Supported by
Oxfam
Ramannapet Ramannapet Lakshmi Silk Weavers Co- 10 Un registered
operative Society
Ramannapet Vellanki Handloom Weavers Cooperative 325 Un registered
Society
Ramannapet Janampalli Markendya Silk Weavers 120 Un registered
Cooperative Society
Ramannapet Janampalli Venkatamana Handloom Cotton 80 Un registered
Weavers Cooperative Society
Pochampalli Pochampalli Pochampalli Handloom Weavers 950 Handloom
Cooperative Society park

3.4 Background Evaluation, Factors Leading to Cluster Emergence:

There are around twelve identified cooperative societies in four mandals in both the
districts, out of which three are registered and in operation over many decades.
Approximately 4500 loom holders and artisans are members in these cooperative
societies. The remaining weavers are working for private sector (master weavers). The
three functioning co-operative societies in Pochampall, Gattu are marketing their products
through the apex society (APCO). The problems of the cooperative societies begin with
the APCO, which has the sole responsibility of promoting and assisting the handloom
weaving societies in the state, especially in marketing the cloth produced by primary
societies. In the initial years APCO functioned quite well, with sales reaching Rs 85
crores during 1996-97. But there has been a steady decline since then, and in 2006-08 the
total sales of APCO amounted to only Rs 60.38 Crore (data supplied by APCO) 4.The
trends in terms of number of societies, number of members, number of looms and
productivity declined. The major problems that severely affected the cooperatives are
non-availability and accessibility of timely inputs like yarn and dyes as well as their rising
costs.

4.0 Diagnostic Study Findings:

4.1Household Information:
Primary data collected from the selected mandals and villages during the diagnostic study
is presented below.

Household Details

4
Information from the officials of APCO staff’s at Pochampalli

16
 Average Average Average Average Average
Male /Income
HH Level
Education
Housing
Household
Income DetailsFemale Pattern
Level
/ Details
HH Children / HH Members/ HH Member in
Illiterates 1-5th class 5th-10th4class
Average27679
income
Intermediate13% 3% Average
1% 2RCC income
Degree SHG / HH
Mud Thatched Asbestos
(primary)/
1 HH 1 (secondary)/ HH 1
1 11% 3% 1 2 4 1
27679 29% 40% 2063
2063
The average members per household
27% 71%
Primary secondary are four and the household has at least
one member in the SHG and two
members in productive category
working on looms.
It was noticed that 40% of the households have mud houses, whereas 29% have RCC
roofs and 27% lived in thatched roofs. About 4% of the
families have asbestos roofs

In the income levels per household, it was observed, on an average, primary income of the
household, through weaving is Rs 27,679 per annum and the average income through secondary
sources Rs 2063.

Educational Illiterates 192

profile of 1-5th class 31
the 5th-10th class 36 It was seen during the survey that 71% of the total
Artisans Intermediate 8
Degree 4
population was illiterate, while only 2%
of the total sample was holding a
degree with the rest having basic
education.

Particularly, Pochampalli mandal,

Nalgonda district, 18 household have no Housing Mud 109
ration cards. All 100% of household in Pattern Thatched 74
the four mandals have BPL cards. RCC 79
Asbestos 9

17
 4.1 Analysis of Business Operation:
Employment:
Keeping in view potentiality and feasibility, EGMM has promoted handloom cluster in
Mahaboobnagar and Nalgonda, speared over in 17 villages, four mandals. In the
Diagnostic study 1322 artisan families were covered, with 2838 individuals directly
employed in 1332 looms. Of these 680 (52%) weavers are working with eleven Co-
operative Weavers Societies and the rest working in association with 15 master weavers
and traders. The practice prevailing in the area is that Master Weaver supplies dyed cotton
/ silk yarn, zari etc to weavers directly and collects the end product. Basically the Master
Weaver pays the wages based on the skill and productivity of the weaver, ranging from
Rs 1500/- to 4000/- per month.

Product:
Pochampalli, Ramanpet, Rajoli and Gattu Zari and Silk Sarees are the original branded
product of the cluster, made by using 51mts x 480 thread count. Nearly six varieties of
Sarees viz Mallemogga, Rajasthan Box, Teegapushpam, in Pan Pattern anchu were
produced and marketed throughout Andhra Pradesh, Maharashtra, Karnataka and Odisha.
Apart from the silk and mecesrage Sarees, the cluster weavers also produce cotton dress
materials, cotton bed sheets. Later on the weavers have switched over to production of
100 x 100 Zari fancy Sarees to suit the market trend and sustain business. Though master
weavers and the co-operatives are marketing these products for the last few decades they
have not ventured to export the product in spite of feasibility.

Source of Raw Material:

The weavers of Rajoli, Gattu, Waddepalli and Macherla village are badly in need of good
quality silk/cotton and Zari yarn, dyes, chemicals, material for warping, sizing and other
loom accessories but all these are not locally available. The weavers have been getting all
the above material from outside to meet demand of silk yarn in selected colors from
Bangalore, Sholapur, Dharmavaram, Janagaon and Pochampalli . It is found that the weavers
of the area are also visiting Pochampalli and Ramannapeta where dyed cotton yarn in
required size, warp at affordable price is available to produce quality product. However,
frequent increase in raw material price due to uncertain markets forcing weavers and
master weavers to seek dyed yarn from Bangalore, Sholapur & Dharmavaram markets.

Markets:
The weavers in this cluster area are not Retail
Retail directly Export,
Export,
Niche
Outlets, Niche
involved in marketing the Sarees but the Outlets, master Market
Market
Consume
Consume
weavers and co-operatives are directly rs
rs
involved in
the marketing of the products but they are adopting
old traditional tactics because of which there
is no gainful-beneficial margin. The master weavers and co-
operative also facing sometimes adverse market
condition leading to increase in inventory levels. Since the
cluster area villages are well connected
Hyderabad and Bangalore for
Trad Wea Weave
Weave APEX
the Wea rr Co-
APEX
er ver Co- (APC
(APC
generating ver op
op O)
O)
Societi
good market links and also Societi
es
es
potential for collective marketing. But the weavers of this Cluster area
have not developed their mindset to acquire technological revolution for product

18
diversification to improve marketability of the product. New design with computer
technology has not been used in spite of the availability of such facilities in the market.

Technology Up-gradation:
The skills and practices of artisans’ are inherited and passed on from generation to
generation in the villages. Because of ancestral skills and production practices of the
weavers it was not possible to achieve breakthrough in production contributing to
restricted future growth. Though there were efforts for technology up-gradation, for
instance from pit-loom to frame loom, the weavers acceptability was poor, and they
wanted less skills and more comfortable management style.

Consumer Awareness:
The consumers in all the leading handloom states are well aware of Pochampally products
and silk sarees from other handloom centers like Rajoli, Gattu, Ramannpet marketed
through Pochampalli traders. However, the customer feels that there must be new, cost
effective designs, patterns & finer count sarees. To meet the consumer demand, the
artisans required to work on product diversification for which they need to invest on
changing the jacquard.

Financial Sources:
The co-operative weavers societies in Pochampalli and Rajoli are financed by NHDC &
APCO, and the artisans in Gattu, Ramanpet, Macherla villages are linked to IKP credit
facility through SHG/VOs under Pavalavaddi scheme. Credit available to weavers is
highly inadequate to meet production cost as well as further value addition to the
handlooms. Other financial institutions like banks & MFIs are not showing interest to
render services to weaver communities due to lack of collateral securities, non availability
of Business Development Plans (BDPs) and several other reasons.

Sl.
No Cost Benefit Analysis for One Batch of Silk Sarees ( 8 with Buta).
A Fixed Cost        
Raw Material Requirement Cost Total Cost Cost
  (Kg) ( INR) (8 Sarees) /Saree
i. Silk Yarn 1 3200 3200 400
ii Wept Yarn 4 2500 10625 1328
iii Butas Zari Yarn 4 380 1520 190
Colors (Soda, Soap ,Color
Shine , Hydro Shine & Fire
iv wood ) 500 63
  Total A 15845 1981
Cost / Cost
B Labour cost Days Day Total Cost /Saree
i. Dyeing 20 100 2000 250
ii. Rolling 2 100 200 25
iii. Reading 2 100 200 25
iv Sketch making 1 100 100 13
v. Rubber Tying / rolling 2 100 200 25
vi Joining all piece of work 2 100 200 25
vii. Design Setting 8 hr 1 120 120 15

19
viii Thread Rolling to Kandis 4 100 400 50
ix Weaving on Loom 32 100 3200 400
  Total B     6620 828
i. Cost before waste calculation     22465 2808
ii. Wastage @ 5% of Total Cost     792 99
  Total Cost including waste     23257 2907
C Ratio    
Price @ Master Weaver Level
i. (8 Sarees)     28000 3500
ii. Total Cost (for 8 Sarees)     23257 2907
iii. Profit Before Tax     4742 592

5.0 Value chain cost analysis for one batch silk saree production

One Batch(8 Saree) of Silk saree (with Buta) production

1 kg. Silk Yarn / Price 3200/-

4.250 kg. Wept Yarn / Price Rs. 2500

Raw
Raw Material

per Kg = 10625/-
Material

4 butas Zari yarn = price per buta Rs.

380/- X 4 = Rs. 1520/-

Colours (soda, soap, colour shine,

hydro shine and firewood)Price Rs.
500/-
Net Profit :
Rs 5535/- for 8
sarees
Dyeing : 20 man days required, wage
per day is Rs 100/- = Rs.2000/-
Gross production Gross sale value for 8
cost for 8 sarees : sarees : Rs. 28000/- at
Rolling : 2 man days required, wage Rs 22465/- Master weaver level
per day is Rs 100/- = Rs.200/-

Reading : 2 man days required, wage Packing & Transfer : to Master weaver
per day is Rs 100/- = Rs.200/- at local

Stretch marking : on Chitiki with graph 20

Weaving by loom : 32 days per 8
paper , required 1 man day, Wage Rs. saree, Rs.100 per day wage = 3200/-
100/- = Rs.100/-
 Rubber tying / rolling : required 2 Thread rolling to Kandis : 4 man days
man day, Wage Rs. 100/- = Rs. 200/- Wage Rs. 100/- = Rs. 400/-

Joining all piece work : required 2 Design setting : 4 hrs. for 2 persons,
man day, Wage Rs. 100/- = Rs. 200/- Wage Rs. 60/- = Rs. 120/-

Value Chain Flow Chart:

Wept & silk Yarn (Hank)

Scouring - Boiling water containing

Caustic soda and soap
Oil, rinsing and squeezing
Cleaned Yarn (Hank)

Dyeing - Dyestuff & Chemicals

Boiling Squeezing, drying

Dyed Yarn (Hank) Market

Hank Dyed Yarn Reeling Yarn reeled on

Done by family Bobbins / Dabbas/ Khandis
Members
Yarn Reeled Warping yarn on Bobbins can be warped
Done by professionals warping machine
6 Sarees done by warping
Unit.

Warp Sizing and beaming Warp can be sized ready to beam & Weave
Done by family Members

Ready to Weaving Sarees

Weaving Done by Weavers

With Ornamentations like Pete, Buta, Pallu,

Mogga, Rajasthan box work etc.
 Scouring: Silk, wept, zari yarn has to be scoured in boiled water and then to be
squeezed.
 Wept yarn:

21
 Dyeing: Squeezed scoured yarn has to be dyed with dyestuff and chemicals, which
has to be washed, squeezed, and dried. Then the cost of the dyeing has to be added at
11% on the cost of the Grey yarn for each lady. If the material on above functions are
done at competitive rates the cost of the dyeing may be less.
 Reeling: Since the reeling of the dyed yarn is being done by the family members on
bobbins or dabbers for warping. There is no labour cost or wages involved.
 Warping: Wrapping is being done on wrapper drum by the professional with low
cost.
 Sizing: Since the sizing is being done by individual weaver members they are not
getting good quality of sizing. If the same is done by the professionals the weaver
may get good quality sizing for easy weaving.
 Weaving: Though the Consumption of weft yarn is less then warp yarn the wages
being paid to the weaver is on high side. Unless by diversify the product to other
means it may not be permit to more wages.

Existing Value Chain Map

Local Yarn Market

Dyeing,
Yarn Market bleaching etc

Designing
Master Weavers

Job works
(wrapping, reeling
and Threading
Weavers

Local Cloth
Merchant / Market
Traders

Support Institutions (Co-op Societies, NHDC, APCO,

Govt. Institutions, CFCs etc) NGOs

The economics of handloom weaving is shrouded in a web of contradictions between

subjective perceptions and objective realities. For policymakers, handloom weaving is a
holy cow, too reminiscent of nationalist ideals to be rejected. At the same time, it is seen
as inherently unviable in competition with the modern sector, and while many policy

22
statements were made to support the sector after independence, these have not been
implemented with any degree of success. After liberalization, textile policy is more
openly slanted towards higher productivity (the power loom sector) and export potential,
implicitly relegating the handloom sector to a secondary status.

The more widespread perception is that handloom weaving is an activity in deep crisis,
caught in a vicious circle of low productivity and wages unable to retain a competitive
edge in the face of struggle with power looms, rising costs of inputs and production,
shrinking markets and lack of adequate state support. This, in fact, is the perception of the
various stakeholders in handloom sector itself. Yet, at the macro level, the handloom
sector has maintained a steady 20 to 25 per cent share of total textile production,
notwithstanding the increase in the number of power looms across the country. In order to
reconcile the questions arising out of contradictory perceptions and secondary
information, the diagnostic study looks at the brighter side of the sector based on the data
collected from Nalgonda and Mahaboobnagar districts of Andhra Pradesh (AP).

5.1Cluster Value Chain Actors & their Role:

Weavers:
At the base of the value chain are skilled and semi-skilled craft workers who work for
daily wages or a fixed wage per finished product. These weavers differ in their skill
levels, with a small number being highly skilled and a majority being moderate to low-
skilled workers. A majority of the weavers fall around the poverty line and belong to
marginalized caste groups.
 Independent Weavers: These weavers are having the loom by their own and buy the
yarn themselves and produce according to the needs of market and sell to the master
weavers or traders.
 Cooly Weavers: These weavers also have their own loom, do the weaving for the
master weavers (Sahukar) and weaver’s co-operative societies and receive wages for
the cloth produced by them.
 Shed Weavers: These weavers do the weaving for the master weavers alone and
receive wages for the cloth produced by them. These weavers do not have their own
loom and residential house as they have come from other places of the same district or
other districts of Andhra Pradesh.

Master Weavers:
Master-weavers are highly skilled weavers who play the role of sub-contractors, take job
orders from the traders and then manage a group of 30-35 weavers in fulfilling production
targets. They also supply raw material and pay wages to the weavers. They themselves
take the marketing. The Master Weavers generally supply yarn to the weavers and some
basic inputs occasionally about the color, design and pattern based on the market trends
and information that they receive from their customers.

Specialized Job Workers:

23
The Reed Fillers, Winders and the Designers etc. Together they form a specialized group
but they are also a part of the weaver's family. They perform the pre-weaving tasks, which
are not only laborious but also time consuming like wrapping, reeling and threading.

Traders:
Historically, local traders have been an important part of the value chain through which
products from these districts reach extra-local markets. Traders play a key role in
aggregating production, working with 100 to 150 weavers and few master weavers
through the master-weavers. The traders establish linkages in new geographic markets
and provide raw materials and financing to craft workers.

Input Suppliers:
Small businesspersons who provide yarn, thread, dyes, loom parts and other weaving
machinery and tools to master weavers and directly to individual weavers.
 Bangalore Supplies: Most of the societies and the Private yarn traders procure the
yarn from Bangalore and Dharmavaram through post, sometimes by courier service
and sometimes by transport. They communicate through phone and place their orders
to certified parties/suppliers on panel of SERIFED, a Karnataka Silk federation etc.
 Yarn Retailers: As such in the clusters there are no wholesale yarn traders, but there
are retailers doing the retail business apart from the above stated doing their retail
business of yarn supplies and also involved in the collection cum trading of finished
produce.

N.H.D.C:
This is a central government undertaking under the D.C. Handlooms for the supply of the
basic raw material to the weavers of the handloom sector at the Mill gate prices without
charging any transportation charges and the other local taxes. But as on date very few
weavers take supplies through this institute as it was told the private parties are able to
sell at a lesser price than the NHDC and in terms of quality they find the product to be
inferior.

APCO:
The Andhra Pradesh State Handloom Weavers Cooperative Society Ltd., (APCO) is the
APEX Handloom Weavers Cooperative Society of Andhra Pradesh. The Society was
registered in the year 1976 with registered No.T.P.W.44 under the Andhra Pradesh
Cooperative Societies Act 7 of 1964 with the following main objectives, inter alia, among
others
 Purchases raw materials and appliances, tools and machinery including spares as may
be required for the area and to sell the same to the member of the societies.
 Purchase or receive for sale, the finished products of the member/ weavers of the
societies by opening Sales Units, go-downs, Exhibitions etc.

Governmental and non-governmental association

24
It is obvious that one weaver service center at Hyderabad, Vijayawada, Chennai which
are equipped with mechanism for extending all assistance in all aspects are available
which can be utilized. There is also one Indian Institute of Handlooms Technology
available, which is imparting training in handlooms industry which services can be
utilized.

Chetana Colour Weaver Society:

It is further stated that one Non-Government Organization has been working and also has
undertaken several programmes under the support of Oxfam fund for the welfare of the
Weavers Community like Training in Weaving, dyeing and marketing etc. The services
of this organization can be utilized for cluster programme implementation and imparting
training to weavers.

Participation by Agencies:
It is obvious that Master Weavers and Cooperative Organisations have not established any
training centers for imparting training to weaver in designing, dyeing, sizing, warping but
they have been using skills already available and inherited from ancestors. Since there is
no agency undertaking such activities, the Master Weavers, Co-operatives other interested
weavers may be encouraged for skill up-gradation, designing, weaving and dyeing etc.,
by utilizing the services of Indian Institute of Handloom Technology, Handloom Export
Promotion Council, Weavers Service Centers, DRDA., Professionals etc
6.0 Inter Enterprise Linkages :
Product linkage:
The EGMM promoting clusters in both the districts are well connected to major business
hubs like Hyderabad-Bangalore, Sholapur and Chennai. The cluster is now the most
advantageous position for improvement of Marketability of their products. Pochampalli
it’s just 45kms away from Hyderabad and Gadwal is radius of 220km away to Hyderabad
and 350Km to Bangalore, where all the entrepreneurship based services will be accessed
like wholesalers, retailers, shopping malls, traders, yarn suppliers, design makers,
jacquard manufacturing units and technology input providers. In addition to this there
support service agencies like Department of Handlooms & Handcrafts and Ministry of
Textiles are delivering services for the growth of the sector. Master Weavers and
Cooperative Society representatives may enhance the marketability of the product by
seeking assistance requirements from these two Institutions. Technology and all other
service aspects the representatives representing weaving community may also approach
and seek guidance from the Indian Institute of Handloom technology for changing
jacquard design technology and daily market updates etc. also there is a possibility to
producing export oriented fabrics they must have tie-up with the export promotion
council at Chennai which is just 600kms.

LINKAGES:
------------------------------------------------------------------------------------------------------------
BACKWARD LINKAGES FORWARD LINKAGES
------------------------------------------------------------------------------------------------------------
Raw material suppliers Purchases
(Yarn + Zari) (APCO)

WEAVER
Dyeing, Reeling,

25
Warping, Sizing

Loom accessories Consumer and

Dobby – Jacquard Trader

------------------------------------------------------------------------------------------------------------
Forward Linkage Relations:
The main downstream actors that provide linkages to markets are wholesale dealers in
urban areas like Hyderabad. These wholesale dealers have informal relationships with
traders and master-weavers from these districts for the supply of products. Some traders
from these districts also operate as itinerant salesmen, visiting major cities and selling
products door to door. These two channels still account for a significant portion of sales
from the region.

7.0 SWOT Analysis of Handloom Cluster:

Generally SWOT analysis gives an understanding of the growth of the industry. This will
include the financial position, skill of the person, technology, marketing linkages,
integrity among the artisans, traders and master weavers etc. Accordingly for
understanding the handloom cluster in both the districts SWOT analysis is highly useful
to make understood the cluster, which is follows.

Strengths: Weakness
Finance: Finance:
1. Existence of bankers and MFI 1. Low profitability & margins of enterprise
2. CGTMS scheme on board and which result in bankers being worry
3. Good Government support schemes supporting of small units.
4. IKP program SHG/VO credits 2. No financial product / business plans for the
5. Cooperatives enterprises
Market: 3. No collateral securities with artisans
1. Pochampalli brand established across the 4. Lack awareness on CGTMS scheme
world 5. SMEs largely do not come together for bulk
2. Cluster product registered under GI purchase of inputs as to benefit from quantity
3. Increased domestic & oversees market discounts.
4. Wholesale & retail houses at Hyderabad 6. About 10 to 15 percentage of weavers are
5. Good connectivity with market hubs / trade migrated to this sector.
fairs/ exhibition 7. Lack business attitude and entrepreneurship
6. Scope for product diversification skills.
7. Perennial Customer relation established Market:
8. HEPC for import & Export 1. Volatile market
Production : 2. Detrimental price and non-innovation and
1. Availability of traditional weavers. differentiation based competition amongst
2. Availability of modern technology manufacturers.
3. Quality raw material basis. 3. Lack efforts for value added products.
4. Cluster attributed to the deft 4. Insufficient market promotion effort for
weaving skills possessed by the weavers. export.
5. Good infrastructure facility. 5. Production of the same variety in bulk
6. Availability of backward and quantity.
forward linkages. 6. Non-adoption of innovative designs in
7. Service provider availability within keeping with changing market expectations.
the reach. 7. Depending on Government support by co-
8. Scope for MSME support schemes operative societies.

26
Employment / Human Resource: 8. Lack of national information and knowledge
1. Availability of educated unemployed on international market.
youth 9. Unavailability and non use of e marketing and
2. Training institutions like ITI, for forecasting fashion trends and colour
Polytechnics, designers, NIFT. schemes.
3. Skilled man power like Master weavers Product:
4. Weaving can be a professional course 1. Narrow product range.
2. Bulk production of limited varieties.
3. Low maintenance of quality (yarn, dyeing &
weaving).
4. Dependency on limited product range.
5. Inferior quality of dyeing.
6. Fewer linkages with service providers.
7. The weavers undergo a lot of drudgery and
suffer from low productivity because of
seasonal climatic conditions.
8. Lack of testing facility
9. Raw material dependency
Employment / Human Resource:
1. Non availability of skilled labour
2. Low wages in the sector
3. Lack of institutional training centers
4. Lack of R&D for the growth
5.
Opportunities: Threats:
Finance: Finance:
1. Common financing to facilitate cheaper 1. Policy level implications
institutional finances. 2. Global financial inflations
2. Linkage with SHG/VOs Market:
3. CGTMS 1. Saturated market.
4. Common facility centers and common 2. Decline in demand of saree.
raw material bank / purchase. 3. Competition from other clusters.
5. Designing financial product Production:
Market: 1. Old and traditional technology
1. Participation in trade fairs and buyers 2. Threat from power looms
and sellers meets. 3. Bulk production of similar
2. Common product display centre. varieties
3. Potential buyers in untapped market. 4. Non-implementation of effective
4. Exploration of new market. management systems to improve business
5. Scope for export market. performance.
6. BDS directory 5. Absence of private and public
7. E marketing partnership to promote R&D value added
8. Scope for training intervention among production and new markets.
artisans on collective marketing Employment / Human resource:
9. Promotion of collective brand / supplier
brand would enhance opportunities. 1. Wages in the sector is not flourished
Production : 2. Less scope for the growth of individual
1. Common Facility production carrier, unless institution mode
center / raw material bank to reduce
costs.
2. Scope for diversification into
value added products.
3. Scope for training, intervention

27
 among SMEs.
4. Brand building.
5. Product / Design patenting.
6. Ensured quality
Employment / Human resource:
1. Training institute
2. Support from EGMM / Ministry of
Rural Development
3. NHDC / MSME – DI support for
cluster initiatives
4. NSCDC for technical support
5. Cooperative / SPV preparations

28
 Cluster Map Pre Intervention
29

Support organization / institutions and service providers

NGO / MFIs Banks SIDBI / DC Handicrafts Handloom

IKP / SHG /
NABARD NHDC / Ministry Export
EGMM
of Textiles Promotion F
Council o
B
A r
C w
K a
W Yarn Supplier Audit firms / Tax r
A Consultant d
R Markets L
D Weavers Co- i
players
Local Operative n
Local Traders
L Designer Societies k
i a
APCO g
n Designers
k e

WEAVERS
a

WEAVERS
g Pochampalli
Dyer Traders out Side
e Handloom ark
Pochampalli /
Rajoli
Local loom Chetana colour
Manufacturer Weaver society
Master Weaver
Training institution /
poly technical & . ITI
TradMaster
Weaver Packaging
ers Suppliers

Handloom Park at Yarn depts. Transporters Accessories

Gadwal & Suppliers
Pacmpalli
er

ce

er

nt

er

S)

ce

er

nt
m

es

es
vi

vi

er

ig

vi

vi
D

el

D
BB

sisi

BB
PP
dd

SS

dd

pp

SS

pp

nn

uu
er

oo

ce

er

nt

nn

er

oo

S)

ce

er

nt

oo

vv
rr

ee
m

es

rr

ee
m

ee

es
ss

vi

vi

er

ig

ss

vi

vi

ss
D

el

D
((

29
8.0 Cluster Level Support Institutions :

The Handloom Specific Government Agencies:

The following support institutions are playing vital role in the cluster for the development of
handloom sector. Particularly organizing the exhibitions, direct sale discount schemes, rebates
are being supported through weave cooperatives by the mentioned agencies.
 Directorate of Handloom (DOH)
 Weaver Service Center (WSC)
 Institute of Handloom Weaving Technology
It registers and assists co-operative societies and monitors their work. It manages rebate
schemes, if any, on handloom sale and organizes handloom exposition; (sale-cum-exhibition).
DoH manages schemes of assistance for handloom weavers. These include loom up-gradation,
work shed-cum-housing, design development, skill upgrading, publicity, market development
assistance, support for export, group insurance, health package, etc. The institute also offers a
three years diploma in weaving.

Handloom Park, Pochampally, (Nalgonda District):

 Government of India have approved the Project (SITP) with an outlay of Rs. 19.8 crores of
which GOI share is Rs.7.40 crores
 Entrepreneurs have formed into an SPV and purchased 21.8 Acres of land in Kunumukkala
(V) Pochampally (M).
 An amount of Rs. 12.24 crores have been released by Govt. of India and a sum of Rs. 100.00
lakh by Govt. of Andhra Pradesh.
 An amount of Rs. 100.00 lakh was sanctioned under ASIDE Scheme for external
infrastructure in the form widening and strengthening of single lane road x 2 lane road
connecting to main lane of Pochampally Handloom Park and of which Rs. 50.00 lakh
released.
 An expenditure of Rs. 26.31crores had been incurred on infrastructure development.
 200 handlooms are set up and 300 weavers are trained on improved looms and employed.
 The producer Company is securing orders from overseas.

Handloom Park at Gadwal (Mahaboobnagar District)

 50 acres of land acquired at Pudur Village of Gadwal Mandal in Sy.No.368 located at 8. KM
to Gadwal Town for setting up of Handloom Park.
 The Park has been handed over to the APIIC on 2-4-2008 by the Park Administrator and an
amount of Rs. 50.00 lakh was also given to APIIC in March, 2008 but so far APIIC has not
commenced any works.

Yarn Availability in the Cluster:

Yarn Depots Sanctioned By Government of India (NHDC)
Name of the District Name and Address of the of yarn Dept/ Agency / Remarks
Society
Nalgonda ALLWIN Handlooms, Siripuram (M), Ramannapet-
508113, Nalgonda Dist.
HWCS Ltd., Siripuram, Nalgonda.
Koyyalagudem Handloom Weavers Co-operative

29
 Production & Sale Society Ltd., Koyyalagudem,
Nalgonda
Manimaya Exports, Puttapaka Narayanpur, Nalgonda
Dist- 48021.
Savitha Handlooms, Choutuppal (M) - 508252, Via
Hyd. Nalgonda Dist
Sri Venkateswara Saree House, Handloom Market,
Choutuppal - 508252, Nalgonda Dist
Sundeep Handlooms, D.No.556/2 Vellanki Village, This belongs to the
Ramannapet, Nalgonda Dist – 508113 EGMM DSR study
area
Mahaboobnagar Rajoli HWCS Ltd., Regd.No.TF-2374, Rajoli Post, This belongs to the
Waddepally (M) - 509126, Mahaboobnagar EGMM DSR study
area

Co-operative Societies:
There are 12 handloom weaver cooperative societies in these four mandals (DSR study) of
both the districts. The society organises work in a manner a weaving contractor does and
engages with the trade channels in an identical way. The weaver members are focussed on
wage payment.

District Administration:
Within district administration, there are District Industries Center, Joint Director of Industries
and District Rural Development Agency. Women weavers from the cluster are enrolled into
SHGs under IKP program. Hence, most of the loom based entrepreneur SHG member’s
availed credits from the VOs & SHGs.

Banks:
Poor bank linkage was observed for the tiny firms like weaving units More than 80% of the
weaving units having good linkage with the SHGs and VOs. The tiny manufacturers and
weavers are mainly depending on money lenders or own sources of funds for purchase of
equipment and working capital including labour payments. The money lenders are charging
anywhere between 15 to 20% based on the entrepreneurs credibility and net worth.

The lead bank Managers has facilitating credit linkages with respective area banks for the
fostering rural based entrepreneurship activities. The key issues in formal lending is banker
doesn’t have trust on the weaver due to their previous history, on other hand weaver don’t have
any business records or collateral securities for getting the loan from the banks. Weaver is not
aware of the new schemes like CGTMS to avail the loans without any securities up to 5 lakh
for the entrepreneurship activities.

National Agriculture Bank for Rural Development (NABARD)

NABARD9.0 is preparing PLP for
Key Issues inthe feasibility for
Thematic the growth
Area : of the sector.

ISSUES IN HANDLOOM SECTOR IN MBNR & NALGONDA

CLUSTER

30
Poor market
accessibility

Labor intensive
industry
 development manpower

No/ less education

Low productivity Artisans under

Lack of quality / OldMatrix
10.0 Institutional design (Existing Scenario) Poverty / BPL
No scale of volume
Unhygienic work condition
APE HEP T
  SMES DH & T X WSC DCH DCCB Non NIFT
DRDA access of
C the Govt
C Mills Fin.Int.
facility / Schemes
SMES
Poor  information
H L L L H L N L N L L
exchange system

ons.
associati
ve/
cooperati
of
function
Non
DH & T H   M M H H L N N N M L

APEX L M   H H H M Low
M bargain
L M M L
Old & obsolete
WSC technology
L / looms
M H   H N N M L M N N
/ Jacquards
DCH L H L H   N L M L H L L
No coordination
DCCB M H M N N   L N N among
N NArtisansL

DRDA L L N N L L   N N N N L
Too much dependency on
NIFT Master
N weavers
L and M N M N N   L M N N
traders
HEPC N N L N L N N material
Raw L Price  increased
M L N

TC N L L L H N N L M   L L
Poor institutional linkages Lack of working capital
Mills L D
like R& N L N N N N N N L   N

Fin.Int. L L L N N L L N N N L  
Non availability of formal Not easily accessible to
credit lending (Finance) financial institution

11.0 Proposed Action Plan:

Un healthy
competiChartered
11.1 Vision, Goal & Objectives:
Accountant/ Tax
Vision: Lack of institutional structure
The EGMM Consultant
proposed cluster in Mahbubnagar and Nalgonda will establish a niche market , both
tioDesigners
domestic and international level, with an annual turnover of about Rs. 150 crores by end of 2013,
with a thrustieron doubling, both household income and employment for the target beneficiaries.
oom sector
Goal & Objectives:
At least 50% increase in income to more than 2000 poor weaving artisan families who are
already members in SHGs. This is to be achieved by ensuring higher wages, skill up-gradation,
cost reduction through common purchase and common production center, product
diversification, direct export marketing and increased employment.

Objective:
The overall objective of the project is to develop the Handloom Clusters that are in close
proximity and to provide effective service delivery to weavers who are SHG members. The
project aims at establishing close linkages, coordination among key players in the cluster through
technology up gradation, improving and accessing infrastructure facilities in terms of better
storage, pre-loom/on-loom/post-loom operations, skill up-gradation, design inputs, health
facilities etc. which would eventually meet the discerning and changing market demands both at

31
domestic and international level thereby improving living standards of thousands of weavers
engaged in the handloom sub sector.

The specific objectives are as follows.

 To increase production and productivity with cost effective, quality products to compete
with domestic and international market.

 To up-grade the skills of handloom weavers/workers to produce diversified products with

improved quality to meet the market requirements.

 To fetch higher wages and higher income for weaving households by establishing raw
material bank, yarn dept, mobile van and providing capacity building in product design.

 To facilitate collectivization of handloom weavers and service provides for procurement,

production, marketing and other support activities to promote sustainable growth and
diversification.

 To involve professional marketing chains and marketers to identify the items of

production to meet the changing demands of the market and linking with institutionalized
markets.

11.2 Project Implementation Strategy:

ACCESS will facilitate formation of weavers’ consortium from existing members of SHGs in
both the districts, Nalgonda and Mahaboobnagar. The artisan members will be organised into
clusters at Mandal level and all the clusters apex bodies are affiliated to the Cluster Consortiums
(CC). Currently, the proposed intervention consists of approximately 2000 weaver member in
SHGs from 32 villages in 5 mandals in both the districts. The Cluster Consortium (CC) at the
apex level is an affiliation of clusters constituted at each Mandal. The Clusters will have
Weaving Business Groups (WBGs) formed from the existing members of SHG at village level.

During the project period ACCESS will facilitate to formation of the Cluster Consortium (CC) at
project level and subsequently it would be registered under the Cooperative / Producer company
act, which is having legal entity, by-laws and business operative plan as whole. To develop
sustainable business plans and access required services, CC will be provided one Consortium
Executive (CE) who would be required to interact with the weavers and tie up linkages with the
connected organizations and BDSPs (Business Development Service Providers) like
banks/financial institutions, market institutions/marketing experts, marketers, master weavers,
traders, legal experts, designers and designing institutions, Technological innovators, machine
suppliers, raw material manufacturing mills, and Government institutions along the schemes etc.
The consortium will ultimately takeover the activities of the cluster after the 24 months and run
it, thereafter on a self sustainable basis.

32
 11.3 Service Delivery Frame work:

Support Institutions (Govt. (state & Central)

B F Skill
Skill Up-
Up-
a Cluster
Cluster Consortium
Consortium (CC)
(CC)
Raw
Raw at o gradation
gradation
material c at project
project level
level Registered
Registered
material Apex r
Silk/cotto Apex body
body
Silk/cotto k w
n/
n/ wept
wept CFC
Yarn
w a CFC
Yarn && (Common
Colours
Colours a r (Common
r Production
Production
Firewood
Firewood d
d Center
Center ))
Mandal
Mandal level
level Mandal
Mandal level
level Mandal
Mandal level
level Mandal
Mandal level
level Mandal
Mandal level
level L
L Clusters
Clusters Clusters
Clusters Clusters
Clusters Clusters
Clusters Clusters
Clusters i
Mobile
Mobile (Apex) Domestic
Domestic //
Van i (Apex)
(Apex) (Apex)
(Apex) (Apex)
(Apex) (Apex)
(Apex) (Apex) n Export
Van Export
(supply
(supply n k Marketing
Marketing
of
of raw
raw k a
materials
materials a WBGs
WBGs at WBGs WBGs
WBGs at
g Financial
Financial
)) at WBGs at at WBGs
WBGs at at WBGs
WBGs at at at
g village
village level
level village
village level
level village
village level
level village
village level
level village
village level
level e linkages
linkages
e (7
(7 Villages)
Villages) (8Villages)
(8Villages) (5
(5 Villages)
Villages) (6
(6 Villages)
Villages) (6
(6 Villages)
Villages) s
s Mobile
Mobile
van
van
(collection
(collection
of
of final
final
Weaver
Weaver from
from SHGs
SHGs of
of 32
32 villages
villages 55 mandal
mandal in
in 22 districts
districts Product
Product

Business
Business Development
Development Service
Service Providers
Providers (Tech/designer/yarn/loom
(Tech/designer/yarn/loom supplier/
supplier/
MW/Packing
MW/Packing // Printing
Printing etc
etc

Based on the above mentioned strategy, ACCESS encourages convergence of schematic

assistance and support services from various schemes and programmes of Central/State
Government, other agencies in the cluster to optimize resource utilization for betterment of the
livelihoods, improving the quality of life and increase in income levels of the weavers. On other
side the project will strive to promote Public Private Partnership (PPP) model in the form of
collaboration between the Government, beneficiary weavers groups, commercially linked
marketing enterprises and financial Institutions.

11.4 Expected Outputs & Project Deliverables:

The strategy in project clusters would be to break isolation amongst the producers/ master
weavers and weavers, between weaving community and the support institutions and ensure a
positive policy environment. This is a pre-requisite for accessing markets and developing

33
competitiveness. In other words developing the social capital and developing strong inter
linkages between the key players would be the underlying theme of all interventions
 Sustenance of employment __no of the weavers in the handloom cluster
 Increase the ___number of working days in a year;
 Encourage diversification in production to suit the changing market demand both at domestic
and international levels
 Substantial increase in production
 Reduced the cost of production by way of improvement in infrastructure and augmenting
inputs supply through establishing CFC, yarn/ raw material bank and mobile van
 Increase the level of earnings of the handloom weavers
 Improve standard of living of the handloom weavers
 Foreign exchange earnings through export market

11.5 Marketing Strategy for Handloom Products:

The Cluster Consortium (CC) provides marketing support to weaving communities in the
selected clusters of Andhra Pradesh through the creation and promotion of innovative marketing
strategies. Objective of market promotion strategy is to provide continuous employment to
weavers and improving their household incomes significantly through institutionalized agencies
in wholesale/ retail network and ensuring assured marketing linkages.

Initially the Cluster Consortium (CC) will target the potential domestic market. Huge,
Prosperous middle class represents a large market segment and that could easily support the
produce of weaver societies. Cluster Consortium (CC) also supplies a small part of the produce
to niche market for the upper class/export segments in order to establish visibility for cluster
products in market place.
As part of its marketing strategy, Cluster Consortium (CC)/Cooperative Societies will be
encouraged to market their products under a brand name (suggestive names could be
APLOOMS, CHENETA, MOTHER LOOMS- the brand name will be decided in consultation
with the members) to establish in major markets domestic as well niche markets. The brand
name will be popularized through web-portal, E-marketing and existing chain of Cooperative
Society's outlets at various districts in Andhra Pradesh and major handloom hubs of the country.
Subsequently, the Cluster Consortium (CC) will be strengthened under the brand umbrella, to
become a lead brand in the country, having set of objectives to meet overall goal of the project to
improve the turnover and employment in the handloom sector. The market related objectives are.

 To Market the handloom products through weaver business groups to existing mainstream markets
 To expand market share by producing diversified and innovative handloom products and distribution
marketing mechanisms as opportunities arise
 To establish a systems to have updated market information through SMS/WEB/E- Marketing on each
product and provide product wise pricing.
 Keep abreast with market changes in order to provide the best possible marketing support to the
handloom industry.

To achieve the set of marketing objectives as mentioned the above, the following supplementary
strategies will also be put in place during the execution of the project.
34
1. Linking with wholesale & retailed houses (caters mainly to boutique/shop/chain selling)
2. Home selling /corner shop network (for the middle class housewife who wears handloom sarees and
salwar suits etc).
3. Mobile marketing through vans that supply raw material as an additional activity to receive finished
goods from the weavers and market enroute.
4. Web & E – based marketing
5. Exhibitions (direct customer contact and promotion of new products) and
6. Exports marketing by the Cluster Consortium under the brand name.
7. The range of varieties of handloom products exhibited under the brand name in exhibitions, trade
fares, showrooms includes, Silk and Cotton Sarees, Chudi dar, Silk and Cotton Dhoties,
Angavasathrams, Shirtings, Lungies, Home Textiles such as Bed Spreads, Furnishings, Napkins,
Kerchiefs, Towels and Foot mats.
8. Improving sales through exhibitions/ road shows in the state as well as outside the state apart from
counter sales through its 189 sales outlets in and outside Andhra Pradesh.
9. Obtaining orders for uniform cloth from State and Central Government establishments (APSRTC,
Singareni colonies etc) , schools, and other private institutions (Pharmaceuticals, Fertilizer
manufacturers etc)
10. Organize exhibitions to expand the business in untapped areas like software companies etc.
11. Linking the Rebate Subsidy as the Government provides 20% rebate on the sale of Handloom cloth
throughout the year.
Marketing framework to be designed while execution of the project and few of the wholesale & retail
chain outlets are been mentioned below.

 Chanderi/Gwalior: Lifestyles, NewDelhi, Raw mango, Jaipur,PANTALOON, N.Delhi, SHADES

OF INDIA, N.Delhi, Tehliani Designs,N.Delhi, CCIC, N.Delhi, Chennai, Mumbai, Mrignayani,
N.Delhi, Ahilya Creations, Mumbai ,Lucknowi chiken, Ahemdabad
 Chirala: All India Handloom Fabric Marketing co op. society ltd, Salem
 Gadag: Desi, Bangalore
 Imphal:Smt Bimolata Devi, M/s. Ningthidi colllection, Imphal, unjamani Devi,Secretary,
Turoiromba Muga and silk co operative Society ltd Imphal.
 Kullu: H.P State Handloom and Handicraft Development Corporation Lt, Simla
 Kurinjipadi, Jayam Exports, Chennai, Chopkursi Trading Company, Chennai ,Tirumal Handloom ,
chinnai
 Madhavaram: Bommana Brothers,Showrooms at Hyderabad,
Rajahmundry,Kakinada,Guntur,Vijayawada and Vizag, Chandana Brothers, Hyderabad Thummidi
Brothers Vijayawada, Rajahmundry and Kakinada
 Mubarakpur:Sutra Handicraft, New Delhi,Biba, Mumbai,Kamayani, N.Delhi,Meena Bazar,
Delhi,AND Designs, Mumbai
 Shantipur:CCIC, New Delhi,Westside, Kolkatta,Fabindia , Starsh, Kolkatta, Ranjana Fabrics,
Pune,Reliance Retail, Banglore.

11.6 Exit Plan & Empowerment of Institutions/Cluster Consortium:

The success of project is always measured by the outcome of its programme implementation.
The planning of project implementation is important but exit plan is also equally important as the
continuity of the success depend on it. If the exit plan is excellent then impact will be
sustainable. Our exit plan is based on the following

 Promotion and strengthening of Cluster Consortium (CC)

All the Mandal level associations and Cluster Consortium (CC) are already registered and will be
able to avail the Government support in building their infrastructure. They will be able to
35
negotiate with various organizations and recognized as the unit of mass representative. They will
be able to render the facilities to their member to get all sorts of cooperation in marketing and
technology fronts. They have to create their asset base for sustainability. The regular board
meeting will be backed by annual general body for making strategy for the future of the
organization. It has to be seen that the democratic process is followed with regular election for
the managing committee as per the bye law. So a strong association will be there to take over
the responsibility after we exit from the sector

 Creation of well trained team of management executives

The elected or selected managing committee members/executives will undergo specialized
training to acquire adequate competency to manage the day to day practices independently. This
will also ensure good governance and emergence of good leaders at base level. The capacity
building on advocacy, planning and execution of business strategy will make them confident to
take appropriate decisions. A strong team is the indication to accept higher responsibility.

12.0 Budget & Duration:

The project will be implemented over a period of two years (24 Months) and ensures active
participation of cluster stakeholders in increasing the turnover as well employment in the
villages involved in handloom sub-sector.

The project seeks support from EGMM Rs 51.77 lakh programme cost, Rs 37.35 Lakhs in
programme support cost and Rs 7.35 Lakhs towards institutional overheads. The summary of the
budget is given in the following table and further detailing was done in the following tables

36
Budget Summary for Cluster Development Programme of Handloom Subsector by
ACCESS Development Services in the Districts of Mahaboobnagar & Nalgonda
Sl No Particulars Project Support from
EGMM
Amount
1 Programme Cost   5,177,500.00
2 Programme support cost includes, HR, Travel 3,735,000.00
and Admin)
Total 8,912,500.00
3 Institutional Overhead @8% of programme cost 713,000.00
  Grand Total 9,625,500.00
 
N.B : Taxes will paid in addition to the proposed budget as per rules
 

37
Handloom Subsector in Two Districts Mahaboobnagar & Nalgonda, Budget Plan for Two Years:

(Rs) Lakhs for 2

Stakeholder

project Funding ofPercentage of

Project Funding

beneficiary firmsNumber of
  Major Thematic Implementation Period (Quarterly)

Beneficiary

GoI & Others (Rs)

Output/Outcome
Contribution by
Area/Activity Area /

Total (Rs)
Sub-Activity

Expected
Contribution (Rs)
years
  Major Initiatives of the Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr              
I II III IV V VI VII VIII
Project

A Trust Building                              
01.0 Formation and                 50,0 55,00 91 2000 Registered
00.00 0.00
1 registration of Cluster 5,000.00 - I Cluster
Consortium at Project Consortium
Level/ Mandal and 5 Mandal
Village level level clusters
32 Village
level Apex
01.0 Awareness on                 67,5 7,5 75,00 90 500 Initially 500
00.00 00.00 0.00
2 Consortium approach at - weavers
Mandal level Apex from 32
bodies and Trust WBGs are
building the oriented on
entrepreneurship activity the
(One day) X 5 mandals consortium
Rs. 15000/- each approach
01.0 Mega Program               60,0 60,00 100 30 30% of the
00.00 0.00
3 launching workshop to - - MSMEs will
sensitize all the cluster adopt the
level stakeholders (2 best
program in two districts practices in
including broacher) each their units.
Rs. 30000  
37
       -    
B Raw Material                  
(Backward Linkages)
02.0 Preparation of DPR for                 300,0 300,00 100 2000 15% of
00.00 0.00
1 Raw material Bank - - existing
(Depot. Silk/wept / Zari MSMEs
Yarn cotton) linked with
Consultation fee export and
import
houses.
02.0 Facilitation for                 450,0 3,600,000 4,250,00 11 500 500 Artisan
00.00 .00 0.00
2 Establishment of Raw 200,000.0 will be
Material Bank in the 0 accessed
cluster (Depot. daily raw
Silk/wept / Zari Yarn materials
cotton), colours and (Yarn /
Firewood colors /
firewood’s)
02.0 Facilitation of Mobile                 300,0 50,0 250,000.00 600,00 50 300  
00.00 00.00 0.00
3 van (purchase) to supply
of raw material and
collection of final
products from the
weavers
02.0 Training on                 50,0 50,00 100    
00.00 0.00
4 Management of Raw - -
Material Bank / Yarn
depot and Mobile Van
(2 spells ) for 30
members (2 days each X
Rs 25000 per batch
           
C Skill Up Gradation                  
200,0 30,0 300,000 530,000.00    
3.0 Training on Weaving,                  
00.00 00.00 .00
designing and
computerized designs,
dyeing for 2 months
each batch through
(NIFT)

38
 3.01 Training on Value                 160,0 160,00      
00.00 0.00
addition and Product - -
diversification for two
batch for 10 days in 40
persons
3.02 Exposure Visit to                 200,0 30,0 100,000 330,00      
00.00 00.00 .00 0.00
Handloom Technology
centers at state and
National level 3 batches
D Marketing Linkages                              
4.0 Market Survey on                 400,0 400,00      
00.00 0.00
demand of designed - -
products and linking
with Retail chains /
Wholesale and Export
Markets
4.01 Training on Collective               60,0 6,0 66,00      
00.00 00.00 0.00
marketing approaches -
and dynamics 100
people (3 batch) each
batch 30000 for 2 days  
4.02 Participation of Trade               200,0 10,0 200,000 410,00      
00.00 00.00 .00 0.00
fairs & Exhibitions,
Buyers & sellers at state
and national level 4
events (100000 each
aprox.)  
4.03 Promoting common                 200,000 200,00      
.00 0.00
brand - -
4.04 E marketing - Website                 250,0 250,00      
00.00 0.00
creation and registration - -
and Maintains for 5
years
4.05 Publishing materials                 150,0 150,00      
00.00 0.00
Advertisement - -
broachers, information
catalogs etc

39
E Quality enhancement                            
-
5.0 Training &                 60,0 6,0 66,00 91    
00.00 00.00 0.00
Demonstration on -
Quality Testing / check
parameters on Raw
material purchase &
Finished products 2days
for 50 person (2 spells)
Each Rs. 30000/-
5.01 Facilitation of mini               150,0 150,000 300,00 50    
00.00 .00 0.00
Testing Center at the -
cluster level  
D Financial linkages                            
-
6.0 Revolving fund support                 1,000,0 1,000,00 1    
00.00 0.00
for the Cluster level - -
Consortium in ( 2
spells ) 7 lakh & 3 lakh
6.01 Bankers interface along                 60,0 60,00      
00.00 0.00
with the stakeholders to - -
sensitize on CGTMS &
credit linkages 3 times
(each Rs.20000
E Institution Building                            
-
7.0 Strengthening of Cluster                 360,0 60,0 420,00  
00.00 00.00 0.00
Consortium (CC) -
through appointing
Consortium Executive
and office etc
7.01 Exposure visit to Bench               350,0 25,0 375,00    
00.00 00.00 0.00
mark clusters at -
National level 1 batches
(15 board members ) for
4 days  
7.02 Social Security                    
measures through   - - - -

40
 insurance product 1000
looms (Group
insurance)
F Workshop on Policy             60,0   60,00    
00.00 0.00
Advocacy     -
8.01 Stakeholder                 120,0 120,00      
00.00 0.00
Convergence meeting - -
G Publishing Cluster News                 120,0 120,00      
00.00 0.00
bulletin - -
  Total                 5,177,50 429,50 4,800,000.0 10,407,000.0  
0.00 0.00 0 0

Handloom Subsector in Two Districts Mahaboobnagar & Nalgonda, Budget Plan for Two Years:

Annexure - Programme Support Cost for the Cluster:

SL Name of the Position Type of Number of Proposed Proposed Total Cost Remarks
No Position Positions Consultancy for Consultancy for
exists Year1 Year 2 (10% hike)

Consultancy           There is an
A Cluster Development Manager Full Time 1 450,000.0 495,000.0 945,00 increment of 10%
0 0 0.00 hike in the first
Network Development Expert Full Time 1 350,000.0 385,000.0 735,00 year consultancy
0 0 0.00 fee of each
Project Coordinator Full Time 1 250,000.0 275,000.0 525,00 individual
0 0 0.00
Accounts & Administration Part time 1 180,000.0 198,000.0 378,00
0 0 0.00
  Sub total 1,230,000.00 1,353,000.00 2,583,000.00  
Travel Cost & Per-diem            
B Cluster Development Manager travel   1 Vehicle hire cost,
cost per month Rs 12000/- X 24 144,000.00 144,000.00 288,000.00 expenses will
months inure on the basis
of actual

41
 Network Development Expert travel   1 Expenditure will
cost per month Rs 5000/- X 24 months 60,000.00 60,000.00 120,000.00 incur on the
basis of actual
Project Coordinator travel cost per   1 Expenditure will
month Rs 2000X 1 X 24 months 48,000.00 48,000.00 96,000.00 incur on the
basis of actual
Sub total 252,000.00 252,000.00 504,000.00  
Administrative Cost            
C House rent & Electricity bill per month    
Rs 7000X 24 months (District level ) 84,000.00 84,000.00 168,000.00

Expenditure will incur on the basis of actual

Communication (including telephone,    
Internet, Fax & Courier) per month Rs 60,000.00 60,000.00 120,000.00
5000X 24 months
Documentation charges (Printing,    
Stationary, Xerox, photo) per month 18,000.00 18,000.00 36,000.00
Rs 1500X 24 months
Support staff cost office boy per month    
Rs 5000X 24 months 60,000.00 66,000.00 126,000.00
Office expenses (Cleaning, Guest    
refreshment, staff meeting etc) per 24,000.00 24,000.00 48,000.00
month Rs 2000X 24 months
ASSETS : One Lap top, One Desktop     -
and Printers, 2 Table and 10 Chairs Rs 150,000.00 150,000.00
  Sub total 396,000.00 252,000.00 648,000.00  
  TOTAL (A+B+C) 1,878,000.00 1,857,000.00 3,735,000.00  

42
Annexure 1: List of the Respondents:
Sl. No Name of the Name of the Mandal Name of the Name of the Age
District Panchayat & Artisan
Village
Achugadla
3 MBNR WADDEPALLY RAJOLI Ashabhi 46
Kothatalpadu
4 MBNR WADDEPALLY RAJOLI Abdul Raheemabee 48
5 MBNR WADDEPALLY RAJOLI Maheshwaramma 49
6 MBNR WADDEPALLY RAJOLI Kenchu Renuka 23
7 MBNR WADDEPALLY RAJOLI Batagiri Jayamma 43
Basodi
8 MBNR WADDEPALLY RAJOLI Yellammma 27
9 MBNR WADDEPALLY RAJOLI Salamma 49
10 MBNR WADDEPALLY RAJOLI S.Nagalaxmi 46
Batkiri
11 MBNR WADDEPALLY RAJOLI Kamakshamma 60
12 MBNR WADDEPALLY RAJOLI Dugthi Neelamma 49
13 MBNR WADDEPALLY RAJOLI Kake Laxmi 29
14 MBNR WADDEPALLY RAJOLI K.Savithramma 64
Konthlapandu
15 MBNR WADDEPALLY RAJOLI shekinabee 24
16 MBNR WADDEPALLY RAJOLI K.Sujathamma 29
17 MBNR WADDEPALLY RAJOLI Kake Jayamma 32
Kurva
18 MBNR WADDEPALLY RAJOLI Parvathamma 45
19 MBNR WADDEPALLY RAJOLI Kurva Laxmidevi 60
20 MBNR WADDEPALLY RAJOLI A.Ahmedbee 35
Ganapa
21 MBNR WADDEPALLY RAJOLI Padmavathi 45
22 MBNR WADDEPALLY RAJOLI Surya Sujatha 27
Madhugundu
23 MBNR WADDEPALLY RAJOLI Anjamma 34
24 MBNR WADDEPALLY RAJOLI Surya Anasuya 50
Madhugundu
25 MBNR WADDEPALLY RAJOLI Sheshamma 34
26 MBNR WADDEPALLY RAJOLI Buduge Anasuya 29
27 MBNR WADDEPALLY RAJOLI Diviti Subhadra 24
28 MBNR WADDEPALLY RAJOLI Avula Padmavathi 35
29 MBNR WADDEPALLY RAJOLI Kurva Saraswathi 25
Aknuru
30 MBNR WADDEPALLY RAJOLI Someshwari 26
Budagaisangamu
31 MBNR WADDEPALLY RAJOLI Pushpalatha 34
32 MBNR WADDEPALLY RAJOLI Kurva Jayamma 42
33 MBNR WADDEPALLY RAJOLI Lokamma 52
34 MBNR WADDEPALLY RAJOLI K.Sharadha 32
Kamarthi
35 MBNR WADDEPALLY RAJOLI Padmavathi 34

43
36 MBNR WADDEPALLY RAJOLI Yelapula Lakshmi 34
Kenchugundu
37 MBNR WADDEPALLY RAJOLI Shanthamma 34
38 MBNR WADDEPALLY RAJOLI Jujari Jayalaxmi 25
Madugundu
39 MBNR WADDEPALLY RAJOLI Ambika 26
40 MBNR WADDEPALLY RAJOLI B.Venkatalaxmi 37
Kenchugundu
41 MBNR WADDEPALLY RAJOLI Eeramma 26
42 MBNR WADDEPALLY RAJOLI J.Govindamma 47
43 MBNR WADDEPALLY RAJOLI B.M.Radhika 35
44 MBNR WADDEPALLY RAJOLI Kedar Jayalaxmi 30
45 MBNR WADDEPALLY RAJOLI Mansura Begum 27
46 MBNR WADDEPALLY RAJOLI Aguna Sandhya 23
47 MBNR WADDEPALLY RAJOLI Parveen Begum 22
Thunduru
48 MBNR WADDEPALLY RAJOLI Laxmidevi 39
49 MBNR WADDEPALLY RAJOLI K.Savithri 40
Kuruva
50 MBNR WADDEPALLY RAJOLI Savaramma 55
51 MBNR WADDEPALLY RAJOLI T.Susheelamma 59
52 MBNR WADDEPALLY RAJOLI Agnuru Laxmidevi 36
53 MBNR WADDEPALLY RAJOLI G.Devamma 35
54 MBNR WADDEPALLY RAJOLI K.Padmavathi 30
55 MBNR WADDEPALLY RAJOLI Tarude Savithri 55
Madugundu
56 MBNR WADDEPALLY RAJOLI Dhanamma 69
57 MBNR WADDEPALLY RAJOLI Kake Rukmini 23
58 MBNR WADDEPALLY RAJOLI Taude Jayalaxmi 34
59 MBNR WADDEPALLY RAJOLI B.Padmamma 50
60 MBNR WADDEPALLY RAJOLI B.Padmavathi 26
61 MBNR WADDEPALLY RAJOLI M.Sahadevi 45
62 MBNR WADDEPALLY RAJOLI J.Laxmi 32
63 MBNR WADDEPALLY RAJOLI A.Manjula 30
Rodda
64 MBNR GHATTU ARAGIDDA Shanthamma 46
65 MBNR GHATTU ARAGIDDA Kaki Jamulamma 49
Gadige
67 MBNR GHATTU ARAGIDDA Shanthamma 55
Madugundu
68 MBNR GHATTU ARAGIDDA Lakshmamma 42
69 MBNR GHATTU Macharla Gadiga.saroja 30
70 MBNR GHATTU Macharla Kanike.madamma 85
71 MBNR GHATTU Macharla PG.Shankaramma 36
72 MBNR GHATTU Macharla N.Lingamma 32
73 MBNR GHATTU Macharla Kaki.Jamulamma 49
74 MBNR GHATTU Macharla Maona.Laxmi 39
Mone.Govindamm
75 MBNR GHATTU Macharla a 40
44
 76 MBNR GHATTU Macharla Nageli.sharada 29
77 MBNR GHATTU Macharla Kanike.Jayalaxmi 28
78 MBNR GHATTU Macharla Thata.Jayamma 53
Thata.shankaramm
79 MBNR GHATTU Macharla a 50
kanike.Parijatham
80 MBNR GHATTU Macharla ma 36
81 MBNR GHATTU Macharla PG.shanthamma 36
Patagouda.Mahesh
82 MBNR GHATTU Macharla wari 27
83 MBNR GHATTU Macharla K.Padma 29
84 MBNR GHATTU Macharla Nagelli.Narsamma 40
85 MBNR GHATTU Macharla Doddoli Jayamma 51
Kurni.Anasuyamm
86 MBNR GHATTU Macharla a 41
87 MBNR GHATTU Macharla Kanike.Susilamma 37
88 MBNR GHATTU Macharla Jogi.Jamuna 21
89 MBNR GHATTU Macharla Mili.Laxmi 44
Jogi.Ramalingamm
90 MBNR GHATTU Macharla a 40
91 MBNR GHATTU Macharla Joga.Sharada 33
92 MBNR GHATTU Macharla PG.Susilamma 50
93 MBNR GHATTU Macharla K.Shakuntala 35
94 MBNR GHATTU Aragidda Kakki.Mnikyamma 44
95 MBNR GHATTU Aragidda G.Saraswathi 36
Pyata Goud.Halima
96 MBNR GHATTU Aragidda bee 70
97 MBNR GHATTU Aragidda Rodda.Madavi 25
98 MBNR GHATTU Aragidda Gadiga.Jayamma 55
99 MBNR GHATTU Aragidda Pulipati.Devamma 65
100 MBNR GHATTU Aragidda Gadiga.Renuka 38
101 MBNR GHATTU Aragidda Gadiga.Sujatha 24
102 MBNR GHATTU Aragidda G.parvathi 28
Bapaldoddi.shashik
103 MBNR GHATTU Aragidda ala 25
104 MBNR GHATTU Aragidda Muslim.Rabiya 64
105 MBNR GHATTU Ghattu Kurni.Rukmini 38
106 MBNR GHATTU Ghattu Kurni.suvarna 25
107 MBNR GHATTU Ghattu B.Shakunthalamma 33
108 MBNR GHATTU Ghattu Sistala.Hemalatha 28
109 MBNR GHATTU Ghattu Saraswathi 27
110 MBNR GHATTU Ghattu Kurni.NB.Saroja 31
111 MBNR GHATTU Ghattu Kune.Somwshwari 41
112 MBNR GHATTU Ghattu Kurninesha.sudha 24
Kurni.Sharadhamm
113 MBNR GHATTU Ghattu a 52
114 MBNR GHATTU Ghattu Budarapv.Nirmala 29
115 MBNR GHATTU Ghattu Sityala.Shashikala 32
45
 Kurni.parwataham
116 MBNR GHATTU Ghattu ma 42
117 MBNR GHATTU Ghattu J.Chittema 30
118 MBNR GHATTU Ghattu Kurni.Padma 45
Madvhvndv.Shashi
119 MBNR GHATTU Gorlakhadoddi rekha 28
120 MBNR GHATTU Gorlakhadoddi M.Jayamma 25
121 MBNR GHATTU Gorlakhadoddi M.Jayamma 50
122 MBNR GHATTU Gorlakhadoddi M.Sujatha 31
123 MBNR GHATTU Gorlakhadoddi B.Chittemma 30
124 MBNR GHATTU Gorlakhadoddi M.Jayamma 23
125 MBNR GHATTU Gorlakhadoddi Budharpu.Padma 30
Mandhugundu.Jaya
126 MBNR GHATTU Gorlakhadoddi mma 42
127 MBNR GHATTU Gorlakhadoddi M.Polamma 61
128 MBNR GHATTU Gorlakhadoddi Butta.Laxmi 30
Madhugundu.Parva
129 MBNR GHATTU Gorlakhadoddi tamma 43
130 MBNR GHATTU Gorlakhadoddi M.Anasuyamma 28
Madhugundu.Janak
131 MBNR GHATTU Gorlakhadoddi i 30
Madhugundu.Lax
132 MBNR GHATTU Gorlakhadoddi mi 45
133 MBNR GHATTU Gorlakhadoddi G.Neelamma 16
134 MBNR GHATTU Gorlakhadoddi Butta.Buchamma 53
Madhugundu.Shant
135 MBNR GHATTU Gorlakhadoddi amma 54
Madhugundu.Shara
136 MBNR GHATTU Gorlakhadoddi da 32
Madhugundu.Yela
137 MBNR GHATTU Gorlakhadoddi mma 51
138 MBNR GHATTU Gorlakhadoddi M.Saroja 30
139 MBNR GHATTU Gorlakhadoddi G.Sujatha 22
140 MBNR GHATTU Gorlakhadoddi K.Kotlamma 28
141 MBNR GHATTU Gorlakhadoddi Maheshwari 22
142 Nalgonda Ramannapet Vellanki Bolla.Baskar 34
143 Nalgonda Ramannapet Ramannapet Boda Srinivasulu 48
144 Nalgonda Ramannapet Ramannapet Badugu Neeraja 33
Chalamalla
145 Nalgonda Ramannapet Ramannapet Ramesh 43
146 Nalgonda Ramannapet Ramannapet Aluru Sreenu 43
147 Nalgonda Ramannapet Vellanki Nakka Andalu 40
Miryala
148 Nalgonda Ramannapet Vellanki Chakrapani 50
149 Nalgonda Ramannapet Vellanki Thati Ambabai 40
150 Nalgonda Ramannapet Vellanki Ganji Balamani 32
151 Nalgonda Ramannapet Vellanki Chikka Swami 44
152 Nalgonda Ramannapet Vellanki Bolla Anjaiah 55

46
 Kongari
153 Nalgonda Ramannapet Vellanki Rammohan 36
154 Nalgonda Ramannapet Vellanki Thati Shobha 37
155 Nalgonda Ramannapet Vellanki Adepu Mallesham 43
Vanam
156 Nalgonda Ramannapet Vellanki Venkatesham 47
157 Nalgonda Ramannapet Vellanki Miryala Ramulu 48
Miryala
158 Nalgonda Ramannapet Vellanki Jagannadam 48
159 Nalgonda Ramannapet Vellanki Ganji Lakshmaiah 36
160 Nalgonda Ramannapet Vellanki Vanam Sakkubai 60
161 Nalgonda Ramannapet Vellanki Ennam Narsimha 60
162 Nalgonda Ramannapet Vellanki Chikka Baburao 33
Kandagtla
163 Nalgonda Ramannapet Vellanki Sumalatha 26
Punna
164 Nalgonda Ramannapet Vellanki Venkatesham 41
165 Nalgonda Ramannapet Ramannapet Goska Padma 40
Maheshwaram
166 Nalgonda Ramannapet Ramannapet Ashok 35
Appam
167 Nalgonda Ramannapet Ramannapet Shankaraiah 38
168 Nalgonda Ramannapet Ramannapet Gurram Saraswati 45
Vanam
169 Nalgonda Ramannapet Ramannapet Satyanarayana 38
170 Nalgonda Ramannapet Ramannapet Vanam Narsimha 67
Sangishetti
171 Nalgonda Ramannapet Janampalli Narayana 48
Sangishetti
172 Nalgonda Ramannapet Janampalli Govardan 53
Sangishetti
173 Nalgonda Ramannapet Janampalli Venkatesh 41
174 Nalgonda Ramannapet Janampalli Gangula Ellappa 60
175 Nalgonda Ramannapet Janampalli Gandhi Vinoda 30
176 Nalgonda Ramannapet Janampalli Surepalli Yadagiri 45
177 Nalgonda Ramannapet Janampalli Karnati Narsimha 60
178 Nalgonda Ramannapet Janampalli Sangishetti 35
Venkatesham
179 Nalgonda Ramannapet Janampalli Ekkaladevi 36
Narsimha
180 Nalgonda Ramannapet Janampalli Sangishetti 60
Srinivasulu
181 Nalgonda Ramannapet Janampalli Surepalli Sudhakar 57
182 Nalgonda Ramannapet Janampalli Kairamkonda 32
Venkateswarulu
183 Nalgonda Ramannapet Janampalli Sangishetti 60
Chandramouli
184 Nalgonda Ramannapet Janampalli Punna Sridhar 39
185 Nalgonda Ramannapet Janampalli Punna Krishnaiah 45
186 Nalgonda Ramannapet Janampalli Sangisetti Narendar 33

47
187 Nalgonda Ramannapet Janampalli Punna Ramakoti 39
188 Nalgonda Ramannapet Janampalli Sangishetti 68
Mallaiah
189 Nalgonda Ramannapet Janampalli Sangishetti 51
Dananjaiah
190 Nalgonda Ramannapet Janampalli Papani Rammurti 36
191 Nalgonda Ramannapet Janampalli Sangisetti Samanta 53
192 Nalgonda Ramannapet Janampalli Karnati Yellaiah 42
193 Nalgonda Ramannapet Janampalli Sangishetti 45
Krishnamurthy
194 Nalgonda Ramannapet Janampalli Sangishetti 65
Radhamma
195 Nalgonda Ramannapet Janampalli Kairamkonda 43
Goverdhan
196 Nalgonda Ramannapet Janampalli Surepally Anila 29
197 Nalgonda Ramannapet Janampalli Vanam 41
Chandramouli
198 Nalgonda Ramannapet Janampalli Karnati Dathu 50
199 Nalgonda Ramannapet Janampalli Kairamkonda 30
Sakuntala
200 Nalgonda Ramannapet Janampalli Sangishetti Ramesh 46
201 Nalgonda Ramannapet Janampalli Sangishetti Ganesh 40
202 Nalgonda Ramannapet Janampalli Sangishetti Padma 34
203 Nalgonda Ramannapet Vellanki Bolla.Baskar 34
204 Nalgonda Pochampally pochampally Patnam Parijaata 46
205 Nalgonda Pochampally pochampally kairamkonda 36
Swarupa
206 Nalgonda Pochampally pochampally k Tukaram 57
207 Nalgonda Pochampally ravenapally Bitla Mamatha 26
208 Nalgonda Pochampally pochampally Injamoori 60
Lakshamma
209 Nalgonda Pochampally pochampally M Venkatesham 35
210 Nalgonda Pochampally pochampally Nagalakshmi 25
211 Nalgonda Pochampally pochampally Bhoga Ramulu 49
212 Nalgonda Pochampally pochampally Khangri 42
Lakshamma
213 Nalgonda Pochampally pochampally Sangepu Antamma 55
214 Nalgonda Pochampally pochampally Chandana 27
215 Nalgonda Pochampally pochampally Musunuri 45
Narsamma
216 Nalgonda Pochampally pochampally Bharathiamma 45
217 Nalgonda Pochampally pochampally Bharath 23
Padamavathi
218 Nalgonda Pochampally pochampally Gundetti 37
Venkateshamma
219 Nalgonda Pochampally pochampally Thati Yashoda 35
220 Nalgonda Pochampally pochampally E Yadagiri 30
221 Nalgonda Pochampally pochampally Gundu Anasuya 45

48
222 Nalgonda Pochampally pochampally Narsamma 47
223 Nalgonda Pochampally pochampally Yamba Nagamani 41
224 Nalgonda Pochampally pochampally Pottabathini Radha 32
225 Nalgonda Pochampally pochampally Thathi Sattamma 55
226 Nalgonda Pochampally pochampally Vijaya lakshmi 31
227 Nalgonda Pochampally pochampally Aadepu 55
Dhatnamma
228 Nalgonda Pochampally Ravenapalle Kongari Nagamani 28
229 Nalgonda Pochampally Ravenapalle Gurrwam 33
Nageshwar
230 Nalgonda Pochampally pochampally Ganji Anjenylu 44
231 Nalgonda Pochampally Ravenapalle Gurram Lakshmi 50
Narayana
232 Nalgonda Pochampally pochampally Padma 31
233 Nalgonda Pochampally pochampally Narahari Sharada 39
234 Nalgonda Pochampally pochampally Reguti Archana 20
235 Nalgonda Pochampally pochampally Pocham Latna 28
236 Nalgonda Pochampally pochampally Sareetha Prasana 39
237 Nalgonda Pochampally pochampally Tadka Vani 37
238 Nalgonda Pochampally pochampally Barata Kalpana 49
239 Nalgonda Pochampally pochampally Pushapala 48
Narsamma
240 Nalgonda Pochampally pochampally Ghangi Chenamma -
241 Nalgonda Pochampally pochampally Gundu Jayamma 45
242 Nalgonda Pochampally Ravenapalle Vijaya lakshmi 30
243 Nalgonda Pochampally Ravenapalle Gurram 50
Chandraiah
244 Nalgonda Pochampally RAvenapalle Kongari Ramesh 41
245 Nalgonda Pochampally pochampally Gunti 50
Ramachandram
246 Nalgonda Pochampally pochampally E Jankiramulu 40
247 Nalgonda Pochampally pochampally Vishwanadula 24
Lakshmi
248 Nalgonda Pochampally pochampally Chinthakipidi 26
Haritha
249 Nalgonda Pochampally Ravenapalle Chiluveru 60
Jagadamba
250 Nalgonda Pochampally Ravenapalle Batula Narasimha 45
251 Nalgonda Pochampally pochampally Krishnaveni 48
252 Nalgonda Pochampally Ravenapalle Khonda Pochaiah 60
253 Nalgonda Pochampally pochampally Barata Shoba 52
254 Nalgonda Pochampally RAvenapalle Vanam Ramesh 39
255 Nalgonda Pochampally pochampally Bharata 52
Laxmamma
256 Nalgonda Pochampally pochampally Pishake Ballama 66

49
 257 Nalgonda Pochampally pochampally Alli Manasa 25
258 Nalgonda Pochampally pochampally Badugu Srikanth 16
259 Nalgonda Pochampally pochampally Chitikila 37
Krishnaveni
260 Nalgonda Pochampally pochampally Chenna Bramarhba 29
261 Nalgonda Pochampally pochampally Elagundula 60
Narsamma
262 Nalgonda Pochampally pochampally Chittipollu 50
Lakshamma
263 Nalgonda Pochampally pochampally Kairamkonda 60
rajamma
264 Nalgonda Pochampally pochampally Chepalli Palavi 48
265 Nalgonda Pochampally pochampally Chitimmila 20
Banupriya
266 Nalgonda Pochampally pochampally Yelagandula 23
Bargavi
267 Nalgonda Pochampally pochampally Pulgam Manimma 48
268 Nalgonda Pochampally pochampally Chenna Sathaiah 60
269 Nalgonda Pochampally pochampally Nomula Karuna 35
270 Nalgonda Pochampally pochampally Umadevi 38
271 Nalgonda Pochampally pochampally Boddulla 35
Krishnaveni
272 Nalgonda Pochampally pochampally Sunchu Sujatha 30

Annexure 2:

Diagnostic Study Questionnaire

(For Artisans and Manufacturing Units
Name of the Artisan Unit
Respondent Name:
Position:
Age: Qualification:

50
 Address:
Village : GramPanchayat:

Mandal District Pin

Ph No: Cell No:
E-mail: Fax No:

General information
a.
Name of the Head of the Household:
b.
Cast: SC/ST/OBC/General/ minority
c.
Type of the house-Thatched/Asbestos/Roof/Multi stored/IAY
d.
Occupation- Main_______________ Secondary _____________Others_______________
e.
Household Category : BPL / APL , if BPL, please mention the number of the BPL
card_________
f. Are you a member of any association- Yes/No
g. If yes, please indicate the association- SHG/VO/MMS/ Artisan Association / any other- please
specify
HOUSEHOLD DETAILS
Member
Rel
Annual of any
atio Occupation
Name of the SEX Ag Educa Income(Rs) associatio
S n
Family Members e tion n
l with
HH M F Primar Seconda Prima Secondar
y ry ry y

A. A r t i s a n / Enterprise Detail:
1. Ownership pattern: (Please tick)
(i) Proprietorship (iv) Partnership
(ii) Co-operative (v) Private Ltd.
(iii) Public Ltd. (vi) Any other (Please specify)
2. Nature of the Unit: (Please tick)
(i) Registered (ii) Unregistered
If register, where it was ___________(DIC/KVIC/ etc)
3. Year of establishment : _____________

4. Factory Premises: Own / Rented (Tick); Floor area: _ Sq. Ft

5. Products Produced:

Production
Product (in Quantities / in Meters) Value (in lakhs)
Monthly Yearly Monthly Yearly
1.Saree

51
2. Dress materials
3. Floor Mating
4. Decorative items
5.Any Others (Specify)

6. Investment in loom/ plant & machinery (Rs. In lakhs) :

(i) Initial :
(ii) Present :

7. Employment:
Category Average Salary /
Type Wages in Rs
Men Women
Managerial
Supervisory
Workers
Contractual
labourers
Domestic/ family
level
8. The unit is doing: Job work / own production (tick mark)
9. Product segment catered to: (Please tick) (i)
Traders
(ii) Large Manufacturers
(iii) Retailers
(iv) Agents
(v) Exporters
(vi) Others

B. Raw Material:
1. Raw material Requirement:
Raw material Products
Silk Yarn Cotton Jerry Mesage Others
Type of Raw material
Requirement of
quantity in
Kg/month
Price/kg
Production/Month
Wastage

2. Raw Material Sourcing: (Please tick)

(i) Direct (ii) Through Traders
(iii) Domestic (iv) Import (vi) Others if any specify___________

3. Trend in Raw Material price (in last 5 years): (Please tick) and give %
a) Increased_______%
b) Decreased______%
c) Remained stagnant_______%

4. Is there any type of technical service provided by the raw material supplier? Yes/No (If specify)

52
 
5. Please mention 3 most important problems related to raw materials/raw material suppliers /
supply chain
a.
b.
c.
d.

6. Does the enterprise has obtained any assistance from the institutions or departments to solve the
above problems? Yes / No (pls. tick)
If yes mention the support & from where and when?

7. Do you foresee any possibility of creating a raw material bank? Yes / No

If yes, mention how it will helpful:

C. Backward-Forward linkages

Backward Linkage

1. Where from do you get the Machinery & Accessories (tick) and specify the place
 Within the cluster
 Within the State
 Outside the State
Forward Linkages (tick and specify place & distance)
1. Facilities for dyeing? Yes / No __________ Distance________km
2. Facilities for printing? Yes / No __________ Distance________km
3. Facilities for processing / finishing? Yes / No __________ Distance________km
4. Do you have any testing facilities? Yes / No __________ Distance________km

D. Production & Technology:

1. Brief Production Process

2. Production / day (in mtrs.):

3. Capacity utilization: (i) Present: (ii) 5 Years back

4. Reason for lower capacity Utilization:

(i) Power cut (ii) Seasonality factor (iii) Labour shortage
(iv) Raw material shortage (v) Market demand (vi) low input cost (vii) others

5. Details of machinery:
No of machines
Type of Machines / Source of the machines Value of machine
instruments Indigenous Imported (place)

53
 6. I s t h e r e a n y a vailability of following services?
Within the cluster Outside the cluster (specify)
Spares
Servicing

Repairs

7. What are the main problems i n the Process of Production?




8. Has the enterprise diversified / upgraded in the production process? Yes / No. if yes specify


9. Is that the artisans/owners/employees received the basic training or Exposure? Yes / No,
If yes specify the following
Name of the institution
Type of training Place Free / Fee
supported

10. Are there significant problems in availability of skilled labour and imparting skill development
training of the enterprise’s workforce? Yes / No

11. What type of facilities you are providing to the workforce.



12. Please mention ‘2’ most critical challenges in Production & Technology
A

B
13. Is there any threat from power looms or modern technology? Yes / No
If yes are you interested to adopt the technology which is available currently? Yes / No

Finance:
1. W h a t i s t h e a n n u a l c r e d i t r e q u i r e m e n t R s . _ _ _ _ _ _ _ ?
2. What is the principle source of finance for working capital and interest rates?
(i) Own (iv) Customers’ advance
(ii) Bank loan (v) Loan from friends/relatives
(iii) Money lenders (vi) VO (vii) Others
3. Interest rate _______%, No installments for repayment ________outstanding loan Rs___
4. Do you face any problem related to availability of term loan / working capital loan?
Yes / No
If yes, please indicate
(i) Non – availability of term loan / working capital loan
(ii) Procedural complications
(iii) Delay in sanction / disbursement

54
 (iv) Any other

3. a) Do you receive credit facility from Raw material suppliers? Yes / No

If yes, for how many days:

b) Do you need to provide credit to your customers? Yes / No

If yes, for how many days:

4. Please mention ‘3’ most critical challenges in Finance & accounts

5. Is profitability in your business?

a) Increasing b) Decreasing c) Remaining Stagnant

E. Marketing:
1. Where do you sell your products?
Market Percentage
Local
Within the State
Within the country
Export
Total
2. Marketing Channels a)
Direct
b) Master weavers
b) Agents c)
Traders d)
Exporter
e) Any other (please specify)

3. Have you noticed any changes in customer perception about your product? Yes/ No, If yes
a) Please indicate the nature of changes__ _

4. Are you selling products in your own brand? Yes / No, If no, Why?

5. Are you exporting directly or through exporter? Yes / No, If no, Why?

Who are the main competitors? Mention the name

6. Please mention ‘5’ most critical challenges you face in marketing.(Selection / Design/ Prices of
product / Transportation cost / lack of export credit)
7. Do you agree with the idea of joint / collective marketing? Yes / No
F. Human Resources:

1. Do you face any problem regarding availability of skilled workers? Yes / No

If yes, please indicate the nature of problem a)
availability
b) Skill
c) absenteeism

55
 d) others, please specify _

2. Do you envisage requirement of any training facility / program to ensure availability of skilled
worker? (specify)

3. Whether you depute your technical manpower for training / exposure visit? Yes / No
If yes, where?

G. Infrastructure Related:
1. Please give your opinion on the following factors?

Infrastructure Good Average Bad

Road
Power
Water for Industrial use

2. Do you face any problem related to power cuts? Yes / No

If yes, how do you manage?

3. Any presence of common facility in the cluster? Yes / No

a) If yes, please elaborate on the nature of facility

b) If no, please elaborate whether CFC is required in your cluster and why?

Also indicate what kind of facilities / machinery / testing instrument needed in the CFC.

H. Government Schemes:
a) Are you availed any following Central or st at e g ovt. subsidy schemes Yes / No
1. Technology Up-gradation Scheme : Rs
2. Credit Link Capital Subsidy Scheme (CLCSS) : Rs _
3. PMEGP :Rs _
4. CGTMS
5. Others : Rs _
6. Mention difficulties in availing subsidy from the Govt.:

I. Association Related:

1. Is there any artisan association in your cluster? Yes / No

If yes, please mention the name(s) of the association(s).
2. Are you a member of any artisan association / cooperative? Yes / No

3. What help or service you received from them (association)? (specify)

4. How these services are financed/organized?

5. What other support you look forward to from the association?

56
6. I s t h e r e a n y f o l l o w i n g e fforts made by the association (tick and specify)

Services Remarks
Marketing (such as organising buyer-seller meet,

Infrastructure (such as road, water, drainage etc.)

Common Facility Centre (such as training facility,
Technology upgradation (such as new technology,
Awareness program on Govt. policies
Raw material bank
Engaging BDS
Any other, please specify

J. BDS
1. Please inform about the availability of the following types of BDS in your cluster (With name &
Address) :
a) Technology :
b) Marketing : c)
Export : d)
Packaging : e)
Human Resources/ :
Skill Development
f) Transportation :
Design :
g) Tax Related :

h. Energy & environment :

i. Others, please specify

H. mention the inter enterprises relation with handloom sector?




I. General (Interviewer Level)

1. Whether the available services are reaching to all the enterprises of the cluster or are it restricted
to only a few? If restricted to only a few, then what are the reasons?
a) High Price
b) Lack of local presence
c) Not suitable to their requirements
d) Any others

2. What problem do you see with the existing modes of delivery of these BDS? (Please
tick the proper reason)
a) Delayed Delivery
b) Poor Quality
c) High Price
d) Any Others

3. What improvements do you suggest to make the services more effective?

57
 a) BDS utilization on group mode
b) Capacity building of the existing BDS to suit cluster requirements
c) Any others
4. Do services, which are not available to you, affect your business prospects? In what way will your
business grow if those services are provided to you?
a) Improved scale of operations
b) Expanded geographic reach
c) Product Value addition, Diversification
d) Any Others

5. If these services were made available as per the requirements then would they willing to pay a fee
for these services Yes / No

Interviewer’s Comments

Place : Signature of Interviewer

Date : Name & Designation

Village / Cluster level Profile

A. General Information
I. Name of the village :
II. Name of the Gram Panchayat :
III. Name of the Mandal :
IV. Name of the district :
V. Name of the cluster (code) :
VI. Name of the VO (IKP) :
VII. Specify is there any Associations / Cooperatives / CBOs are existed in the village
If yes pls. mention the name _____________________, Total no of member _______ when it
was started___________?
VIII. Existing natural resources are available in the village:
Forest(Sqm) Mines (use tick Water Resources Mention in No Land (Acres )
mark)
Coal Rivers : Irrigated land :
Manganese Up land / Dry land:
58
 Iron ore Streams : Waste land :
Granites Irrigation :

B Sources of Accessibility to the Village

i) Type of roads: Pucca, Semi Pucca, Kacha, Faire weather,
ii) Nearest bus stand in _____Km , Nearest Train facilities :_____ in km
iii) Nearest Airport :_____ in km, Nearest Port :_____in km
iv) Telephone facility Yes / No (use tick mark) : Internet facility Yes / No (use tick
mark)
v) Exposure to mass media like Yes / No (pls. Tick mark)
vi) Postal / telegraph / courier facilities available or not in the village? (if yes put tick
mark)
C Demographic Features of the Village:
1. Total number of the Households in the village:
Category No of House holds No of population
SC
ST
OBC
Minorities
Total

2. Total number of population gender wise

Category Male Female
SC
ST
OBC
Minorities
Total

3. Total number of Household are engaging in handloom sector in the village:

Category No of House holds No of population
Primary Secondary Primary Secondary
occupation occupation occupation Occupation
SC
ST
OBC
Minorities
Total

a. Occupational distribution gender wise:

Category Male Female
SC
ST
OBC
Minorities

59
 Total

D Spread of the Enterprises:

i) Total numbers of enter prise units are existed in the Village : ______
Function No Defunct

ii) Specify the following occupational trend during last 5 years in the village
Trend / Year No enterprise No of artisans
2006
2007
2008
2009
2010
Mention at least 3 major reasons for the change in trend



iii) Classification of enterprises in the village
Category on investment basis No of units
Below then Rs 20,000
Rs. 20,000 to 35,000
Rs. 35,000 to 50,000
More than Rs. 50, 000

iv) Distance between each enterprises on an average km (use tick mark)

1 Km 1 -3 Km 4- 5 Km 5 Km

v) Type of Proprietary : mention the number

Male Female

vi) Mention specific / unique products of the handlooms in the village?

 Decorative item (wall hanging etc..)
 Saree
 Dress materials (male / female)
 Bed sheet
 Others (pls. Specify)
E. Status of existing institutional linkage Vs enterprises in the village / cluster

Name of the Service in nature Fee /free No units Distance

institution based availed from the
If fee mention services village in
60
 Rs. Km
Banks Finance
IICT Testing lab / training/
Short term courses
WSC Training / short term
courses
Dept. Of HC Trainings / Market survey
/ technology transfer /
market survey
TC
DIC Registration / trainings /
awareness programmes
Govt. ITI Training Certificate Training
BIDA Allotment of plots
Insurance companies Claims & risk mitigation
MSME – DI Trainings / Market survey
/ technology transfer /
market survey
NABARD Finance / Trainings
KVIC/KVIB/APCO Subsidy
L
Designers Design
development
CA Tax returns, auditing, financial
statements, project reports
Dye houses Yarn dyeing
Aggregators Raw material
Market
Transporters
If any Others Pls.
add

Signature of the enumerator Signature of the respondents signature of surpanch / secretary

Interview schedule for VO/MMS/MFIs/ cooperatives in the cluster
Basic information
1. Type of institution: VO/MMS/ MFI (tick)
2. Name of organization/ institution :
3. Head / field Office :
4. Operation Area :
5. Legal Form: NBFC / MFI etc. :
6. Date of Initiation :
7. Number of members of :
8. Active clients :
9. Product Methodology : Individual / SHG Lending
10. Services and Products : Savings : Yes/No Credit: Yes/No Insurance:
Yes/No
11. Credit products: 1st Cycle – Rs_______/- per member
2nd Cycle – Rs_______/- per member

61
 3rd Cycle – Rs_______/- per member
Rate of Interest ______% Flat/ reducing
 If IKP loan : Pls. indicate interest rates separately as follows
- MMS to VO : _____%
- VO to SHG : ____ %
- SHG to Individual: ____%
- Other charges if any Rs ______
- Maximum Tenure of instalments for first cycle______
 Activities/ Enterprises – Handlooms, dying , design printing, Tailoring, Fisheries, Goat rearing,
Basket making, Toys, Dairy, Tiffin stall, etc (tick)

12. Outstanding Loan portfolio (Rs lakhs): ___________/- ( each branch)

14. Number of SHGs have bank linkages :__________
12. Amount of loan from banks (Rs lakhs): __________
13. Insurance products: if any (tick mark) : Yes / No , If Yes (life / assets )
- How artisans having insurance for _______life, _______assets
- Annual Premium for Rs _______life, Rs _______assets
Interview Questions:
1. Will your VO/MMS/ MFI Cooperative be interested in lending to artisans as handloom is livelihood
programme? Yes / No

If yes, till now, how many individual artisans are taken loan _______Rs_______

2. What are the expansion plans of your organization in terms of geographical coverage – districts and
blocks – in the state?

3. Do you receive funding for SHG promotion and capacity building? Yes / No, If yes, from which re
the agencies? NABARD / SERP/EGMM / Other ________
4. Specify at least 3 key issues related

Signature of the enumerator Signature of the interviewer

Stakeholders met during the survey:

62
Sl. Name of The Designati Name of Name of the Name of Name Contact
N Stake on the Village the of the Number
o Organizati Mandal District
Holder on

1 Sambashivudu APM MMS Ghattu Ghattu MBNR 87909906

31

2 Raju IKP Mms Ghattu Ghattu MBNR 83743879

05

3 S.Pavani Surpanch PRI Ghattu Ghattu MBNR 99898386

Krishna 96

Gorlakhandod Ghattu MBNR

di
4 Siddappa President GHWCS 99516309
26

5 Pathinti VO IKP Gorlakhandod Ghattu MBNR -

Jayamma di

6 Veeresh VBK IKP Macherla Ghattu MBNR 99639525

65

7 Narsanna Member MHWCS Macherla Ghattu MBNR 99087553

58

8 Rajesh Vo IKP Rajoli Waddepall MBNR 90521589

y 50

9 Nishakh Head Ramoji & Rajoli Waddepall MBNR 94933216

Agarwal y 50
Group
Looms

10 Laxmananna President Ahwcs Macherla Waddepall MBNR 95501309

y 20

11 S.Narayana Chairman RHWCS Rajoli Waddepall MBNR 94411891

y 22

12 Vinod APM IKP Ramannapet Ramannap Nalgond 97059074

63
 et a 46

13 Sridevi VBK IKP Siripuram Ramannap Nalgond 98851468

et a 60

14 Balamani VBK IKP Vellanki Ramannap Nalgond 99122243

et a 67

15 Lakshmi VBK IKP Janampalli Ramannap Nalgond 97054467

et a 58

16 Niraja VBK IKP Ramannapet Ramannap Nalgond 99893182

et a 52

17 Chanrda Productio Chetana Chowtuppal Ramannap Nalgond 98663434

Mouli n Colour et a 73
Manager weavers
association

18 Parvatalu Surpanch PRI Janampalli Ramannap Nalgond 99494475

et a 83

19 P. Narasimha Surpanch PRI Vellanki Ramannap Nalgond 99125556

et a 91

20 Venkataramai Surpanch PRI Ramannapet Ramannap Nalgond 99855657

ah et a 25

21 Narisimhulu Director MSWCo Janampalli Ramannap Nalgond 99895612

et a 95

22 Nagesh VRO PRI Wellank Ramannap Nalgond

et a

23 Koti Reddy Panchyat PRI Ramannapet Ramannap Nalgond

Secretary et a

24 V Nagaraju Secretary Cooperativ Pochampalli Pochampal Nalgond

es li a

64