INTERNATIONAL MARKETING OF KHADI

PROJECT OBJECTIVE
One of the most daunting challenges faced by countrys
planner is that we Indians have not understood the significance and importance of the
traditional sector of Khadi.
This project aims at understanding the Khadi Industry in India,
various factors effecting he growth and success of Khadi industry in India, the
challenges and

opportunities which the market offers and the upcoming trends in the

Khadi Industry.
K h a d i ma j o r l y d e p i c t s I n d i a n c u l t u r e a n d o u r m o t i v e i s t o promote
it and create awareness about i

SUMMARY
As explained in the Objective page, our main motive is to spread awareness about Khadi,
and the tool chosen here is international marketing.
The project report consists of the evolution of Khadi, the strengths, weaknesses,
opportunities and threats i.e. in short the SWOT analysis of Khadi which is explained point
by point later.
This gives us a holistic view about Khadi as a marketable entity. The report also consists of
a review where it is explained that in spite of Khadi being a new entrant in the export
market, it has an edge over other clothing materials, which may prove beneficial in many
ways to many people.
The project report also consists of technical marketing terms like the 4 Ps, Segmentation,
positioning, Khadis life-cycle etc.

OBJECTIVES OF THE STUDY

The study about the Khadi and Village Industries is conducted by considering various objectives in
view. So the main objectives are:To study the organizations production, Marketing and the channels of distribution is conducted.
To know about the techniques used in the Labour intensive industries.
To know about Low well the departments in the organization are co-ordinate.
To study the Khadi Industry adopt various strategies to meet the specific situation.
To study the steps in the production of quality products in Khadi and the determination of cost of
production.
To know about the various problems faced by the Khadi Industry.
The study helps to determine the causes of problems faced by the Khadi and Village Industries.
To know the real reason for fixing high prices for Khadi products.
The capital and labor supply in the Industry.

RESEARCH METHODOLOGY

OBSERVATION
The data and information is conducted to collected by visiting the company. An in depth observation
and mere watching helps to obtain and understand the facts in the industry.

UNSTRUCTED INTERVIEW
A normal conversation is conducted to collect information from employees. The labours are ready to
share the ideas and each and every functioning of the industry.
Free and sincere approach of the labours helps clearly understand all the details of the organization. The
data collection methods are mostly very much useful and suitable to know more details and working of
the industry.

The Khadi spirit means fellow-feeling with every human being on earth. It means
a complete renunciation of everything that is likely to harm our fellow creatures, and if we
but cultivate that spirit amongst the millions of our countrymen, what a land this India
of ours would be! And the more I move about the country and more I see the things for
myself, the richer, the stronger is my faith growing in the capacity of the spinning wheel
(Charkha)

-M. K. Gandhi

GANDHI ON KHADI
Khadi in India was the symbol of freedom struggle. In 1920 at Nagpur session Indian National Congress
decided to encourage Khadi. First Khadi production centre was started at Khthiawad in Gujarath.
Mahatma Gandhi refilled Khadi as the Livery of freedom. It was a weapon and best instrument for
giving concrete expression to the Swedeshi spirit to boyott foreign goods, and rendered an opportunity to
every man; women and child to cultivate self discipline and self scarifies as a part of non-cooperation .

Gandhiji presented a best gift as a device to produce Khadi THAKLI spinning wheel which can be
operated by handeyes. It was aMahasudarshana Chakkra in the history of freedom struggle. It occupied
very important place in our life and provided employment to lakhs of people. The spinning wheel
rotated through decades. Now it, by evolution, changed into 6 spindle 8 spindle charkhas which help to
enhance the production considerably. All charkhas however are hand operated.

MISSION
The convenor of Khadi Mission, Wardha Khadi is a symbol of ournational freedom struggle and of our
commitment to Maximum possibleself-reliance. The Khadi Gramodyog institutions are engaged in
providinglivelihood to Millions of spinners, weavers and artisans in rural areas. Tosurvive, these
institutions need active Government support, by way of provision of credit, access to technology and
Market support. In the Midfifties, a comprehensive plan was drawn up by the Government of Indiasin
consultation with the leaders of Khadi movement, to revitalize this important segment of our economy.
However, no effective action has been taken to tackle the problems faced by Khadi and other village
industries.As a result, unemployment in the rural areas is increasing day by day. To draw the countrys
attention to the problems faced by Khadi, the convenorof Khadi Mission, Shri Balvijayji, who was a
close associate of Acharya Vinoba Bhave, has expressed his determination to go on fast from 17 th
August. I call upon the Government to take urgent steps to attend to the grievances of the Khadi industry
so that we can all request Shri. Balvijayjinot to undertake the fast.

VISION
Khadi is a symbol of over national freedom, struggle and of our commitment to maximum possible self
reliance. The Khadi Gramodyoginstitutions are engaged in providing livelihood to Millions of spinners,
weavers and Artisans in the rural areas. To survive, these institutions needactive government support, by
way of provision of credit, access to technology and Market support. In the Mid fifties, a comprehensive
planwas drawn up by the government of India, in consultation with the leadersof Khadi movement, to
revitalize this important segment in our economy.
GANDHI SAID AS FOLLOWS

Know that after my death, you will burn my Khadi from the housetops. Have to set up
common service centre and training facilities for training promoters to organize new

institutions take up Khadi and village industries activities in hitherto untouched area so that
intensive area development on self reliant basis for full employment through Khadi and
village industries become possible.

Every production and sale centre of Khadi should establish close contact through seminars
and one day camps without least 100 new customers of Khadi.

The workers of institutions should be oriented in the philosophy of Khadi. So that they
understand better its relevance and importance in the represent national and international
context.

The bigger institutions should treat the smaller institutions in brotherly spirit and guide them
in developing Khadi work.

The freedom and initiative of the Khadi institution and their workers should be preserved.

I believe that where there is pure and active love for the poor there is God also. I see god in every thread
that I draw on the spinning wheel.(Young India, 20-05-1926).
The spinning wheel represents to me the hope of the masses. The masses lost their freedom, such as it
was, with the loss of the charkha. The charkha supplemented the agriculture of the villagers and gave it
dignity. It was the friend and the solace of the window. It kept the villages from idleness for the charkha
included all the interior and posterior. Khadi is the Sun of village Solar System.
The planets are the various industries which can support Khadi in return for the heat and sustenance they
derive from it. Without it other industries cannot grow.
But during mylast tour discovered that, without the revival of other industries, Khadi, could not make
further, progress for the villagers to be able to occupy their spare time profitability, the village must be
touched at all points (Harison16-11-1934).

INDUSTRY PROFILE
Classification of Rural Industry
Rural IndustryCottage Industry Small Scale Industry Agriased IndustryHandloom Handicraft Sericulture Khadi and VillageIndustryTiny Industries Rural Artisa
ns Ancillary Industry

R U R A L I N D U S T RY

COTTAGE INDUSTRY

HANDLLOOM

SMALL SCALE INDUSTRY

HANDICRAFT

TINY INDUSTRIES

AGRI BASED INDUSTRY

S E R I C U LT U R E

RURAL ARTISANS

KHADI AND VILLAGE

ANCILLARY INDUSTRY

Reflecting Gandhijis preoccupation with cloth and his linking of it to rural development in 1957, the
government of India established Khadi and village industries commission (KVIC).
For the extensive development of Khadi and Village industries programme, Kerala Khadi and Village
industries association came into existence in the year 1955.Khadi and Village industry plays a significant
role in the development of the economy.
It contributes significantly to the national income and provides employment opportunities to the large
number of the rural economy. Hence it seemed relevant to study the economic aspect of the Khadi.

KHADI AND VILLAGE INDUSTRIES IN INDIA

India, a country with diversity is famous for its rich cultural heritage. Khadi industry is a part of Indian
culture and tradition. About 70% of people live in villages. Any planning for the development of India
could not be complete without embracing the rural aspects.
Khadi and Village industries are traditional sub-sector of rural introduction in India. Gandhiji had
appropriately realized the dual made in the rural society and its economy by the machine economy. He
advocated Khadi andVillage industries and self-sufficiency of the villages nad worked for the removal of
the stigma untouchability and low status of the artisans.
So thatthe artisans could not get his due place and pleased not to hear imported textile and their emerged a
SWADESHI MOVEMENT. Gandhiji underlines the importance of rural India by saying that India
lives in Villages. Gandhiji wanted to make every village self-sufficient by creating employment
opportunities to them during the off season. For this he advocated Khadi and spinning wheel for clothing
which forms the need of people.

The industrial policy resolution of 1956, while emphasizing the role of cottage and small scale industries,
started they provide immediate large scale employment, they offer a method of ensuring a more
equitable distribution of national income and they facilitate an effective mobilization of capital and still
might have either wise remain unutilized.India was known to the world for extensive use of cotton and
silk goods. From about 1500 BC to 1500 AD for nearly 30 centuries India held the world monopoly in
the manufacturing of cotton goods. India has a large pool of skilled labour.
Capital is scarece and we havevast manpower, which must be utilized. Our steps must be labour
intensive and not capital intensive. Khadi industry employs 32 million people (both full-time and parttime), accounting for about 80 percentage of the employment in the manufacturing sector. In the
statement of textile policy announced by the govt.

in March1981. It was started that the Govt. is committed to encourage production of textiles and textile
products in Khadi sector considering its large employment potential, it would be the endeavor of the
govt. to make the product of this sector more competitive and of better quality.Gandiji always felt that,
all cannot be absorbed in agricultural and non-agricultural alternative employment is to be found. The
main basis of Khadi program was its economic value, which is not divorced from human values.Khadi
and Village industries presupposed the formation of skills relevant to rural area and the development of a
well designed and broad based supporting system, capable of assisting the new class of artisans,craft
man, Industrialists and entrepreneur at all crucial stage. Khadi andVillage industries programs forced on
the poorest status of the society
Khadi and village industries have been developed under two periods one before 1947, and the other after
1947. Before 1947, the development of Khadi and village industries was entirely a non-governmental
effort under the inspired guidance of Gandiji. After 1947, the govt. of India and the planning commission
assumes the responsibility for fitting Khadi and village industries within the frame work of the 5 year
plan. The history of Khadi and village industries can be analyzed under two headings.
Kahdi and Village industries in the pre-independence period.
Khadi and Village industries in the post independence period.

PRE-INDEPENDENCE PERIOD
Mahatma Gandhis attempt to receive hand spinning commenced in1915, when he first began to weave
cloth out of mill-made foreign year. After 3 years of patience and strenuous effort he was able to see a
spinning wheel at work in 1918.Khadi was a part of Swedeshi movement.
It gave Indias a national identity and became a weapon for over throwing the British rule. Once
Independence was achieved, the relevance of Khadi started declining.
The all India congress committee held in Baswoda in1921 called upon the people to turnout 20 working
charkhas during an era of flourishing textile mill.The congress committee setup a Khadi development
in the year 1922.It was converted into All India Khadi Board in the year 1923 then into, All India

10

Spinners Association (AISA) in 1925. Till the attainment of independence the AISA was actively
engaged in receiving Khadi
POST INDEPENDENCE PERIOD
The Govt. of India assumed responsibility for initiating assisting andfinancing Khadi under the auspices
of the Govt. of India. All India Khadiand Village Industries Board was established in 1953. It was late
convertedin to a statutory body called Khadi and Village Industries commission inthe year 1957.In the
statement of textile policy announced by the Govt. in March1981.
It was stated that Government is committed to encourage production of textile products intact Khadi
sector considering its large employment potential, it would be the endeavor of the Government to make
the products of this sector more compensative and of Better quality. Khadi and Village industries play a
significant role in the development of the Indian economy.
It contributes significantly to the national income and provides employment opportunities to a large
numberof the rural economy. However, the main basis of Khadi program was its economic value which
is not divorced from human values.So these two periods really splits the Khadi industry clearly. These
periods clearly draws the picture of Khadi and Village industries

SALIENT FEATURES OF KHADI INDUSTRY IN AVINISSERY

The Association is one of the major Institution directly aided by Khadi and Village industries
commission in the Kerala state. AvinisseryKhadi is the pioneers in the field of Muslin Khadi.Kuppadam
weaving is an art of Kerala Khadi weaving. Then all theseproducts attract and conquer the market all
over India. Main activity of these Khadi industry is to production, Marketing. A small type of dyehouse
and printing section is working in the Head Quarters Complex inAvinissery. Apart from Khadi, the
institution is engaged in village oil industry with 4 power Ghanies, Laundry soap, production and honey
processing in the Avinissery complex.
A fully equipped carpentry workshop is functioning at Avinissery for the manufacture and repairs of
charkhas, looms and other implements and furniture and wooden Handicrafts.

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The Avinissery Khadi industry is the pioneers of 8 spindle woolen Muslin charkhas, approved by the
Khadi and VI commission and acclaimed by the institutions all over India.
In 2010-11 the institution head a production of Khadi worth Rs. 4.37Crores and village industries
products valued at Rs. 3.50 Crores. Total sales 8.80 Crores. There are 110 regular employees and 1500
rural Artisans.
The main production areas of the industry in Avinissery are;
Silk Khadi Production
Carpentry and Blacksmithy
Agmarked Honey Production
Ghani Oil
Cane Furniture etc
A small type of Dye House and printing section is located in the HeadQuarters complex at Avinissery.
There are 31 production centres and 15 sales centres under theinstitutions spread over the districts of
Malappuram, Palakkad, Thrissurand Eranakulam.
The institution has its own land and building worth Rs. 100.00 Crores located in 37 places in 24
panchayaths. The association has been working continuously on profit in the last twenty two years.

OBJECTIVES OF THE KHADI AND VILLAGE INDUSTRIES

The Khadi and Village industries are established in certain objectives in view. These objectives are:To rise out the unemployment and under employment problem in the country.
To promote the Khadi products more and more.

12

To provide job opportunities to the weaker sections of the society especially women, windows and less
educated in rural areas.
Khadi programs main provides a source to earn the daily bread of artisans.
To help in achieving better std of living and culture in the country.
To provide Gandian attitudes to the society as a part of social objective.
To ensure the maximum utilization of locally available raw materials in the country.
To achieve the regional balance in the country.
To ensure the eco-friendly products to the consumers in the country that means its a function of
preserving ecological stability and providing healthier products.
To promote the export of the country and to reduce poverty and achieve the economic stability.
To establish a prestigious position among other countries in the world.
The main basis of Khadi programme was its economic value which is not divorced from human
values.
To preserve craftsmanship and Art heritage of the country.
To spread Sarvodaya ideology amongst the people through establish libraries, hold meetings,
conference, exhibitions etc.
To organize and establish village industries

13

H I S T ORY O F I N D I A ' S F R E E D O M

T h e h i s t o r y o f I n d i a ' s f r e e d o m s t r u g g l e i s i n t e r w o v e n w i t h t h e Charkha
the unusual weapon, employed by Mahatma Gandhi tospread the message of
Swadeshi. Gandhi gave the art of Khadi, a special status through this movement.
Khadi simply means cotton, usually handspun.
Khadi i s I n d i a n h a n d s p u n a n d h a n d - w o v e n c l o t h . T h e r a w
materials may be cotton, silk, Polyester or wool, which are spun into threads on a
spinning wheel called a charkha.
Khadi's earliest avatar was fashioned some 5,000 years ago in India, the original home of
cotton, hand spun and hand woven by crafts persons who in all likelihood followed the
precise instructions on weaving, spinning and dyeing laid out in the Vedas.
The Mahabharata and Ramayana rhapsodize over the intricacies of gold shot woven cloth.
Khadi is a versatile fabric, cool in summers and warm in winters. Being a cruder form of
material, it crumples much faster than other preparations of cotton. In order to improve
the look, Khadi is often starched to have a stiffer shape. It is widely accepted in fashion
circles these days.

14

STRENGTHS

WEAKNESSES

Eco Friendly
Reflects Indian
Culture
Versatility of
Khadi
Tax Exemptions
Economic Growth
Low cost
Employment
generation
Fashion

Opportunities

Lack Of
Appreciation
Labor-Intensive
Lack of
infrastructure
Lack of training
in business
methodologies
Lack of
awareness

Threats

Potential for
exports
Emerging trend
Capturing an
untapped
markets
Generation
of employment
Growing
consumer prefer
ence

Competition
Survival in fastgrowing
technology
Legislative
impact

SWOT
ANALYSIS
STRENGTHS:
The basic mot
to is to gener
ate employme
nt within thec

ountry and promotion of Indian culture abroad. Khadi hasc

ertainly come of age and the Indian and International market bothare becoming more
aware about this traditional fabric. It is classic,eco-friendly and natural. Moreover, brand
India is specially soughtafter these days. Khadi is one fabric that is never really in or out
of fashion. It has a great international appeal as well, as Khadi is a brand which
speaks for itself.
WEAKNESSES:
The

exclusivity

of

Khadi

is

that

it

is

hand-made.

And

thus,t h e w e a k n e s s i s t h a t i t i s l a b o u r o r i e n t e d . T h e p r o d u c t K h a d i operates at the root level, which majorly lacks

infrastructure. When the west realizes the importance of Khadi that is when we Indians
have appreciated it. Also it lacks awareness.

15

OPPORTUNITIES:
Khadi

as

product

is

societal

concept,

which

generatese m p l o y m e n t . A l s o , t h e r e l i e s a g r e a t p o t e n t i a l t o c a p t u r
e t h e untapped foreign market. Since, concept of Khadi originally was within
India. India as a brand is gaining popularity. As Khadi now has become a trend, Indians
as well as foreigners prefer it. Thus, there lies a great potential for growth.4)
THREATS:
Khadi still is in the introduction stage and, is now becoming a brand. Many
people and regions are still not aware about Khadi and also people who are
aware

of

Khadi

still

prefer

the

mill

cloth b e c a u s e o f t h e p r i c e -

f a c t o r . T h u s , K h a d i h a s t o f a c e a g r e a t c o mp e t i t i o n
o t h e r c l o t h e s , a l s o b e c a u s e K h a d i l a c k s i n technology

16

with

the

TAPPING THE GLOBALMARKETS

There are various aspects of the marketing but we nee
d t o understand that in order to market internationally we need t
o understand the following questions:
Deciding whether to go aboard ?
Deciding which markets to enter ?
Deciding how to enter the markets ?
Deciding on marketing programs?
(1)Deciding whether to go aboard ?
Generally companies would prefer to remain domestic only if the d o m e s t i c
m a r k e t s a r e l a rg e e n o u g h . t h a t i s w h y t h e c o mp a n i e s p r e f e r t o g o
i n t e r n a t i o n a l . t h e f o l l o w i n g r e a s o n s d r a w mo r e a n d more entrepreneurs the
company discovers that some foreign markets present higher profit opportunities
that the domestic market h e c o m p a n y n e e d s a l a g e r c u s t o me r b a s e t o a c h i e v e
e c o n o m i e s scale the company wants to reduce its independence. A l s o t h e r e a r e
m a n y n e g a t i v e a s p e c t s w h i c h a f fe c t t h e m a n g e r s decisions like the foreign
customers and fail to offer comparative prices. the managers realize that the managers lack
the managerialskills.Most of the companies and their respective countries also supports
them because they earn foreign markets.

(2) Deciding which markets to enter ?

Most companies start small when they venture abroad. Some argueto stay small while
others have bigger plans. companies enter when the market entry and market control
costs are high . product and c o m m u n i c a t i o n c o s t s a r e h i g h . p o p u l a t i o n
17

a n d i n c o m e s i z e a n d growth are high in the initial countries chosen.

dominant foreign firms can establish high barriers to entry.

Also there are various regional free trade zones like

t h e N A F TA , T H E E U R O P E A N M A R K E T S , M E R C O S U L , A P E C e t c . a t t
h e s a m e t i m e t h e r e a r e p o t e n t i a l m a r k e t s w h i c h d o n o t belong to
this regions but still have unique features which need to be understood.
3) Deciding how to enter the markets ?
Once we decide a particular country we determine the best mode o f e n t r y . i t s
b r o a d c h o i c e s a r e a r e i n d i r e c t e x p o r t i n g , l i c e n s i n g , direct exporting, direct
investment and joint venture.
(4) Deciding on marketing programs?
International companies must decide how much to adapt their marketing strategy
to local condition. tandardiztion of the product and distribution channels promises the
lowest

costs.

Also

cultural

differences

can

often

be

pronounced

across

countries.M a r k e t e r s m u s t m a k e s u r e t h a t t h e i r m a r k e t i n g r e l e v
a n t t o consumer in every market

18

CONCEPT OF MARKETING:
The Concept of marketing for Khadi is that of
HUMANISTIC ANDECOLOGICAL CONCEPT.
One of the most important objectives of producing and promotingKhadi is that it provides
rural employment. The welfare of the poorest of the poor is concerned.
Other important objectives of Khadi are:
Khadi is Eco-friendly.
The Dyes used to colour KHADI clothes are vegetable dyes. The vegetables or fruits in
this case are grown for the colouring purpose specially. In case of Khadi, chemicals are not
used and thus, skin diseases are prevented.
Protection of Environment
Khadi is SPUN by HAND, WOVEN by HAND, and PROCESSED by HAND. Industries other
than KHADI, whilemaking clothes use machines which automatically leads to
POLLUTION but since the Khadi products are made by hands the pollution levels are
negligible

SELECTION OF TARGET MARKETS

For large-scale exports, suitable foreign markets must be discovered and selected. In fact,
selection of suitable markets is the first stage in international marketing. Foreign
markets are many but not all are suitable or equally promising for exporting. It is also not
possible to export goods to many foreign markets at one time.

19

Naturally, detailed study of potential foreign markets is necessary for the selection of
most promising and profitable foreign markets.
This is exactly what is done in the process of exploring external markets for Indian goods.

Exploring external markets for Indian goods means making detailed study of potential
external markets for Indian goods ands electing one or few which are most promising and
profitable. The foreign market selected will be treated as TARGET MARKET
for initial entry.
Such selection of promising market is the basic requirement of successful selling in
foreign markets. Appropriate selection of foreign market or markets prepares proper base
for large-scaleexports over a long period.

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MARKETING MIX
THERE ARE 4 PS OF MARKETING ARE PRODUCT, PRICE, PLACE & PROMOTION.
As we mentioned our product is Khadi & our the market or the place is spread over various
countries. our pricing strategy are as follows.

PRODUCT
DUPATTA

INDIAN PRICE (RS.)

350-800

INTERNATIONAL PRICE(RS.)
450-900

TIE

150-250

450-700

SHIRTS

250-1000

350-1500

KURTA

175-350

250-450

BED SHEET

450-1500

1000-2500

TASSAR SILK

300-350

450-650

MATHA SILK

450-550

550-850

WOOLEN KHADI

200-250

450-650

PURE SILK SAREEE

850-1250

1500-2500

BALUCHARI SAREE

4000-4500

6000-7500

KATHA WORK SAREE

3650-4000

4500-7000

SAREE

Note:- charges goes high up to 25% - 30% taking into consideration all the transportation & other
charges as per rules & regulation of other countries.

PROMOTIONAL STRATEGY
21

1. We market Khadi by participating in trade exhibitions. As it was done last year

in places which were Italy, Britain, Switzerland, France and Poland which was orgenised
by International Trade promotion Offer(ITPO). So as to promote Khadi in such Well
reputed fairs.
2.We market Khadi by giving export incentives. We give 5%incentive on FOB
given to those industries who export directly. The industries need to submit paper and
other documentary evidence
3.Buyer and seller And buyers and dealers are various such meets that can be attended
4. Using a global web strategy is one of the best ways to initiate or extend export activities
used to be to exhibitat an overseas trade show. with the web , it is not even necessary top
attend trade shows to show ones wares with the helps of electronic communication i.e. via
internet.

PRODUCT LIFE CYCLE FOR KHADI

INTRODUCTION STAGE
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Introduction of KHADI came during 1920 when GANDHIJI proposed the

idea of SWADESHIMOVEMENT in the Nagpur session of Congress. KHADI according to him
would act as weapon in fighting for our FREEDOM.

GROWTH STAGE
The proposal started taking its growth. The demand for KHADI products
started increasing and demand for FOREIGN products started declining.

MATURITY STAGE
Pre-independence SWADESHI MOVEMENT started taking shape seriously.
People totally preferred KHADIPRODUCTS and avoided FOREIGN goods. The demand for
KHADI reached to its MATURITY level.

DECLINE STAGE
After the independence the demand for KHADI suddenly started declining.

SEGMENTING TARGETING AND POSITIONING SEGMENTATION

DEMOGRAPHIC SEGMENTATION
23

The product Khadi is segmented into various product lasses, according to age gender
and income . It caters to all the age groups For eg. The sarees are women shirts are foe
men and also there are cheaper as well as costlier products targeting various income
groups.

GEOGRAPHICAL SEGMENTATION
IT means that basically the segmentation of the Khadi as a product is according to the
specifications of the particular country and to cater their demands. Switzerland which has
cool weather , they have a great demand for Khadi.

TRADE UNION PRESENCE

Under Khadi and Village Industries Association in Avinissery unit there is two trade unions
namely.
1.Kerala Khadi workers union INTUC, CITU
24

2.Kerala Khadi staff Association Independent Unit

A trade union is any combination of persons, whether temporary or permanent primarily of the purpose
of regulating the relation between workers and employees, or between workers and worker and for
imposingrestrictive condition on the conduct of any trade or business and includes the federation of two
or more trade unions.
Trade unions are an association of or independent workers.
Trade union is ready to adopt according to environment.
Members of a trade union have common interests and problems, which motivate them to unite.

COMPETITORS
Competition means the act of competing a contest and competitor is one who competes. It refers to
rivalry among various firms operating in particular market that satisfy the same customer needs. The
industry structure affects long run profitability. Therefore the competitors should be understood and
monitored. Their actions can spoil an otherwise attractive industry, their weakness can be a target for
exploitation, and their response to a firms marketing initiatives. Can have impact on its success.
25

Competitive information can be obtained from marketing research surveys, recruiting competitors
employees.
Competitors are those companies who are producing technically similar products are considered to be in
the competition. The two means of competitive advantage of low cost of delivery and differentiation,
when combined with competitive scope of broad activities results in four generic strategies:Differentiation
Cost Leadership
Differentiation Focus
Cost Focus
T he company in facing severe competition from the competitors and the industry is now following a
price at trend. The main competitors of Khadi village industries are: Kitex
Bombay dying
Mafathlals

SCOPE OF THE STUDY

The analysis of financial statements provides indepth knowledgeregarding the financial position of the
Khadi and Village industry. It maybe considered as one of the principal component of the planning
system.
FUTURE PROSPECTUS & GROWTH PLANS
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To encourage production of textiles and in each Khadi sectorconsidering its large employment potential,
it would be the Endeavour of the government to make the products of this sector more competitive
andbetter quality.
Growth Plans
Charkha and loom installation.
Introduce of industrial units.
New marketing outlets.
Welfare measures to the workers.
LOCATION OF THE STUDY
The present study is confined to Avinissery panchayat of ThrissurDistrict were the central office of Khadi
and Village Industries Associationis situated.
LIMITATION OF THE STUDY
Lack of time or limited time is available to complete the study. Sotime constraint is an important obstacle
to collect datas in detail.
Lack of complete information.
The labours are in work so they are not able to share their ideas in detail.
The officers busy works etc are the important limitations of the study.

PROCESSING AT STREET WEAVER LEVEL

Spinners get readymade silvers. This silver is converted into hanks and hanks are supplied to the
society.The yarn hanks are first socked in water for 2 days and stumped tore move the yellowness /
impurities from the yarn. This process is repeated or few days. Some of the weavers boil the yarn in
water to quicken theprocess of soaking. Then the yarn is dries and run on the warping machinefor
definite length and number of threads and sizing is done with starchoutside the worksheet (street
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warping). The preparatory work is either doneby the weaver in the area a job work basis. The whole
process takes 7 8days. The prepared warp is then knotted (jointing). After weaving, the final product is
taken to the society.
MACHINARY / EQUIPEMENT / LOOM
CHARKA
There is different type of charkas used for spinning viz 6 spindles . 8 spindles.
LOOMS
Mostly frame looms are in operation in the organization. In the case of Kuppadam, a single design box
(Pettu) is used
FRAME LOOM
A loom with all the required accessories kept together is a frame. Normally this loom will be place on
the ground without any fittings orfoundation bolt. The loom remains stable on the variety of cloth to
bewoven. The loom will have a rest, slay, and head to sit. In most cases theloom is used to weave coarser
verities of fabric
PRODUCT LINE
A product line is an expression used to describe a group of closely related products. It is a part of the
product strategy to determine whether an organization will have a single product or more than one
product. It is a group of products that are related in the same way be being alternatives to fulfilling the
same customer need by being marketed to the same target markets on through the same distribution
network or by being in common price category. A product line is able to satisfy a class of need to be
used together to be sold to the same customer groups, to be moved through the same distribution
channels or fall within given price changes. The product line of khadi industry include Muslin Khadi,
Medium Khadi, polyvastra,silk, weaving machinery, new model charka-muslin and poly thread,
canefurniture, honey, soarp, oil

TYPES OF PRODUCTS
The Khadi and village industry (K. V. I.) sector products a wide rangeof exclusive products, which are
having distinct characteristics. Theseproducts are as under.
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a) KHADI
Handspun and hand woven khadi is very comfortable to wearcompared to the artificially made synthetic
fibers like Nylon, Rayon andTerylen etc. The products are cotton, woolen, silk and polyvastra
khadi.Cotton khadi is 100% of cotton, which was a great demand abroad, and itis available in different
shades and colours. Attractive readymade garmentsare being designed in the form of Kurta paijama,
shirt, ghagra, choli,salvar kammis and other attractive garments.
TYPES OF KHADI
(i)Cotton Khadi
It is one of the types of Khadi, which include 100% of cotton.Dhothies. Lungies, towels, shawls etc are
included in this category.
(ii)Silk Khadi
Silk khadi comes in various categories like tussar, matka etc.Silk khadi can be converted into shirting,
into attractive saris with sari boarderor printed sari such as balucuchari saris, which has rich embroidery
orKanjeepuram with its intricate designs woven in silver or golden.
(iii)Woolen Khadi
Woolen khadi items consisting of sweaters, mufflers, blankets and socks.
(iv)Muslim khadi
This type of khadi is very thin, which comes under 90s,150s and 100s.

b)FIBER
Fiber utility items are made out of sisal banana, pineapple, palm andother fibers. Some of the products
include bags, table mats, wall hanging,carpets, floor mats, floor plot, holdersets. Palm fiber products like
fancybags, baskets, mats etc. are in great demand

C) LEATHER
Leather products range include footwear, like Kolapury chappals,sandals, shoes, purses, brief case,
jewels bags, attractive readymadegarments etc.
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d) CANE AND BAMBOO

Fancy utility articles by using cane and bamboo as raw materials areproduced in the north eastern parts
of country. The items like furniture,sofa sets, partition wall, mats, handy crafts items etc. can be supplied
inbulk quantity.
e) AGARBATTI
Incense sticks with fragrance are available in different verities, whichhas good demand in India and
abroad. Women workers make incensesticks. In foreign country, agarbatti is used as incense in place of
artificialair purifier.
f)PROCESSED FRUIT PRODUCTS
This is one of the activities taken up by the institutions and co-operative societies and financed by the
commission. Products like mangopulp, juices, chatni etc are exported in large quantity. The products
arecovered by FPO (Food Product Organization) license.
g) HANDMADE PAPER
This is a beautiful product which was the cloth rags and waste paperas raw material for production, thus
contributing in saving the trees andhence preservation of ecology. The strengths of handmade paper are
asfollows;
Long product life (100 years or more)
Uniqueness in texture
Eco friendly, does not use wood pulp as raw materials and hence savetrees.

Convert waste into wealth, through recycling nature.

Handmade paper product range from stationary items like files, letterpads, envelops, fancy bags, visiting
cards, greeting cards, watermark,certificate and decoration materials, photo album etc. There is a market
forthis product in particular
h)HONEY
Honey is natural syrup collected y honey bees. There are two types of honey produced. One by the bees
produced in forest and another apiaryhoney produced by installing colonies of bees and maintaining this
insystematic manner. Honey is also used as cough syrup, blood purifier andas a general tonic. The honey
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in India is costlier than in the Internationalmarket. However, this can be overcome by minimizing
wastage andincreasing the productivity.

i)POTTERY AND STONE WEAR ITEMS

Clay articles produced in rural areas by potters known a prajapatiesare in great demand in the country as
well as abroad. In market, fancypottery items and terra cotta are in great demand.

j)PAPAD AND MASALAA

Papad and Masala are in great demand in India and abroad. MahilaHriha Udyog Lijjat Papad of Khadi
and Village Industry, exports papd andmasala to UK, USA, Gulf Countries and Newsland.

k)HERBAL PRODUCTS
K. V. I. produce a number of herbal products like herbal shampoo,tooth powder, health tonic like
Chyavana prash and Churnas.

ACHIEVEMENTS
In order to run the havens in a most attractive manner, we have introduced modern marketing techniques
after careful study of customers preference and fashion trends and to cater to the needs of the
customers,we have taken pains to get the proper materials from Khadi institutions all over the country.
Our Havens is the pioneer among the Khadi Institutionsin introducing Khadi readymade garments,
which have a name throughout the country and we are giving utmost importance to creativity and
innovation in readymade production. Apart from Khadi goods we are selling a wide range of village
industries products like honey; edible oils, soaps, pulses etc. in its quest forkeeping alive the varied arts
and crafts, Khadi bhavans started arranging a number of exhibitions silk saree exhibitions with the
display of multifamous verities of Kancheepuram, dharmavaram, puttaparthy, Orissa andBengal silks,
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baluchur, pochampalli, azarah, battique, tie and dye etc has become a regular feature every year.
Recently exhibition exclusive forwoolen Khadi was also introduced. During the Navarathri festive
season, a regular dolls exhibitions andsales is emerged in the Bhavan at Annual Sales as well as at our
Gramodyog Bazzar at Gopalapuram. This has become a major attraction for thousands of families
visiting the exhibition during pooja every year.Besides dolls exhibition we are also arranging exhibitions
exclusively forsandal woods and rose wood products, pooja articles, jeweler leathergoods, teak wood
furniture, herbal honey, etc. In the various areas atChennai with a view to encourage the artisans as well
as their works. Theseefforts of ours have received a warm welcome from the metropolitanconsumers
and by which had a sale up to one crore.

OPPORTUNITIES
Opportunities are entirely external to the organization and they arepresent in the environmental situation
in which the corporation functions.An opportunity is a major favourable advantage to a
company;provide the same can be availed strategically. The external environmentanalysis may reveal
concern certain new opportunities for profit andgrowth. Such opportunities include.
1.Skilled and experienced spinners and weavers.
2.Growing demand of its products.
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3.Demand for readymade Khadi products of new designs and quality.

4.Judicious purchase of materials,
5.Out sourcing by large units.
6.Overseas market
7.Expansion and Modernization of all units / high investment.

FINDINGS AND SUGGESTIONS

Now the production of charkha is decreased and there is no market. The machines completely conquer
the market. The fast and advanced technology really increases the demand of other products.
The production of furnitures of Khadi and village industries inAvinissery complex will shown on
the down position.
The soap unit of the association is decreased year by year.
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One default that the lack of new fresh blood is less. Generally you there do not prefer Khadi jobs
because of the less amount of salaries and incentives. They switch to other jobs.
The Khadi an village industries generally run on traditional lines.
The Khadi and village industries set a fixed price for a whole year. The changes to other industries.
Shortage of inadequate finance can be seen from the records.
Reduction of raw-materials for making oils.
The products made here are not exporting due to this they were trying to sell all the products within the
country.
Many office workers are paper works. So its move slowly.

CONCLUSION
As explained in the Objective page, our main motive is to spread awareness
about Khadi, and the tool chosen here is international marketing.
The report also consisted of a review where it wa
s explained that in spite of Khadi being a new entrant in the export market, it
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has an edge over other clothing materials, which may prove beneficial in many ways
to many people .
T h e p r o j e c t r e p o r t a l s o c o n s i s t e d o f t e c h n i c a l m a r k e t i n g terms like the 4
Ps,

Segmentation,

positioning,

Khadis

life-

cycle etc. which have to be taken into consideration b

ecause of the project

BIBLIOGRAPHY

www.google.com

www.wikipedia.org

www.slideshare.net
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www.scribd.com

www.infobarrel.com

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