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ORGANISATIONAL ACTION COMPONENT

DEVELOPMENT OF A HANDICRAFT ENTERPRISE FOR THE


WOMEN OF JYOTISAR (KURUKSHETRA)

By

Anjali Godyal (25059)

Organisational Traineeship segment


PRM 25

Submitted to

Prof. Smita Mishra Panda

August , 2005

INSTITUTE OF RURAL MANAGEMENT, ANAND

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ACKNOWLEDGEMENT

This project reports marks the end of my Organization Traineeship Segment (OTS) of
Postgraduate program in rural management. I take this opportunity to express my deep sense
of gratitude to my faculty guide Prof. Smita Mishra Panda, Institute of Rural Management,
Anand for her valuable guidance.

I am grateful to Mr. Jay Sehgal, CF/CEO of S M Sehgal Foundation for giving me the
opportunity to work on this project for S M Sehgal Foundation.

My sincere thanks to Mr. Rajesh Sinha, Ex. Program Leader, Income Enhancement, for his
suggestions, guidance as well as his abiding inspiration all through the project period to
accomplish my work successfully.

I express my thanks to Ms. Anjali Makhija, Group Leader, Ms. Ellora Mubashir, Program
Leader (Communication) and Ms Lalima Srivastava, Assistant Program Leader (FLE) of S M
Sehgal Foundation for their keen interest and constant encouragement to complete my
project.

I also express my thanks to Mr. Mahipal Singh, member of Project Implementation Team, S
M Sehgal Foundation for his help in the initial stages of the project.

I am thankful to all the staff members of S M Sehgal Foundation for their kind cooperation.

Last but not least I express my sincere gratitude for those crafts-women and other villagers
for their kind cooperation and suggestions without which this project would not have taken
this shape.

July 30, 2005


Anjali Godyal

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EXECUTIVE SUMMARY
I Title : Development of a Handicraft Enterprise for the women of
Jyotisar
II Organization : S M Sehgal Foundation, Gurgaon
III Reporting Officer : Ms Ellora Mubashir
IV Faculty Guide : Prof. Smita Mishra Panda
V Student’s Name : Anjali Godyal
The ministry of Tourism and UNDP have launched Endogenous Tourism Project linked to the
Rural Tourism Scheme of the Government. With this scheme the government is aiming at
generating livelihood options for the local people in terms of revenue generated though
tourism.
The objectives for undertaking this study were (a) To identify village women interested to
become handicraft entrepreneurs. (b) To suggest a suitable institutional mechanism for the
success of the project. (c) Identification of Markets. (d) Preparation of a Project Proposal to
solicit funds under a suitable scheme.
The methodology was carried out in three phases. First Phase consisted of the identification
of the producer group and assessment of their skills and needs. Second Phase consisted of the
identification and selection of the partner organizations. Third phase consisted of visits to the
established handicraft shop to assess the customers the potential of such an enterprise.
The findings of the study were that a group of women were interested to become
entrepreneurs but they lacked skills to make marketable products. Also the women being
illiterate or semiliterate were apprehensive of their abilities to run an enterprise. Partner
organizations were identified like NIFD for skill enhancement training, Ministry of Textiles
to financially support the project through a scheme called Ambedkar Hasthshilp Vikas Yojna.
Target markets were identified as people coming to Jyotisar most of them being pilgrims.
Visits to the established stores revealed that women are the major buyers of handicraft.
The suggested Recommendation in this regard is the mechanism to develop the enterprise.
The enterprise should be a producer’s cooperative society. Initially there will be 15 women as
members. Only women can be members of this cooperative. The women will make
embroidered handicrafts like bags, ladies garments, wallets, small pouches. The designs will
be depicting the mythological importance of Jyotisar as a pilgrimage, so that the visitors can
buy these products as souvenirs. Once the business gets established the cooperative has the
potential to have a brand name.

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TABLE OF CONTENT

ACKNOWLEDGEMENT..........................................................................................................i
EXECUTIVE SUMMARY........................................................................................................ii
TABLE OF CONTENT............................................................................................................iii
LIST OF TABLES.......................................................................v
ABBEREVIATIONS.................................................................................................................vi
1.0 INTRODUCTION...............................................................................................................1
1.1 Government of India/UNDP project on endogenous Tourism and Government of
India’s Rural Tourism Scheme...............................................................................................1
1.2 About Jyotisar: One of the 31 Sites Selected For the Project...........................................2
1.3 Implementation of the Project.........................................................................................2
2.0 BACKGROUND OF THE STUDY....................................................................................3
2.1 Socio-Economic Profile of the Village.............................................................................3
2.2 Backing Women as Entrepreneurs ..................................................................................4
3.0 OBJECTIVES......................................................................................................................5
4.0 METHODOLOGY..............................................................................................................5
5.0LIMITATIONS......................................................................................................................6
6.0 EXPECTED OUTCOME OF THE STUDY.......................................................................6
7.0 INTRODUCTION OF THE CLIENT.................................................................................6
7.1 Characteristics ...............................................................................................................7
7.2 Need for Organisation.....................................................................................................7
8.0 IDENTIFICATION AND SELECTION OF THE PARTNERS.......................................8
9.0 MECHANISM FOR THE DEVELOPMENT OF THE HANDICRAFT ENTERPRISE...9
9.1 INSTITUTION BUILDING............................................................................................9
9.2 SKILL ENHANCEMENT TRAINING........................................................................11
9.3 ENTREPRENEURSHIP TRAINING...........................................................................12
10.0 INSTITUTIONAL MECHANISMS...............................................................................13
10.1 Board of Directors.......................................................................................................13
10.2Structure of the Group...................................................................................................14
10.3 Profit Sharing..............................................................................................................15
10.4 Outsourcing of Work....................................................................................................15
10.5 Conflict Resolution.....................................................................................................15
10.6 Expulsion of Member..................................................................................................16
10.7 Induction of New Member..........................................................................................16
10.8Sustainability.................................................................................................................16
11.0 PROFILE OF THE BUSINESS......................................................................................17
11.1 Business Idea...................................................................................................................17
11.2 Business Name............................................................................................................17
11.3 Business Goal..............................................................................................................18
11.4 Business Location........................................................................................................18
11.5 Type of Business..........................................................................................................18
11.6 Competitive Advantage ..............................................................................................18
11.7 Business Activities.......................................................................................................19
11.8Production......................................................................................................................19
11.9Costing...........................................................................................................................19
11.10 Pricing........................................................................................................................20
11.10Products.......................................................................................................................20

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12.0MARKETING ..................................................................................................................20
12.1 Identification of Markets.............................................................................................20
12.2 Advertising..................................................................................................................21
12.3 Souvenirs Selling.........................................................................................................21
13.0 FUTURE PROSPECTS..................................................................................................22
13.1 Segmentation...............................................................................................................23
13.2 Positioning in the Market ...........................................................................................25
13.3 Creating a Strong Brand .............................................................................................25
14.0 SCHEME FOR PROJECT FUNDING...........................................................................26
14.1 Ambedkar Hasthshilp Vikas Yojna (AHVY)................................................................26
14.2 Proforma for Submission of Proposal under AHVY....................................................28
15.0 CONCLUSIONS.............................................................................................................28
REFERENCES ........................................................................................................................29
ANNEXURE 1.........................................................................................................................30
ANNEXURE 2.........................................................................................................................35
ANNEXURE 3.........................................................................................................................36
ANNEXURE 4.........................................................................................................................37
ANNEXURE 5.........................................................................................................................43

iv
LIST OF TABLES

Table 1: Products and the Tentative Range............................................................................22


Table 2: ISVD Integrated Sustainable Village Development Program....................................31

v
ABBEREVIATIONS

AHVY Ambedkar Hasthshilp Vikas Yojna

NGO Non Governmental Organisation

NIFD National School of Fashion and Design

SHG Self Help Groups

UNDP United Nations Development Programme

WTTC World Travel and Tourism Council

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1.0 INTRODUCTION
1.1 Government of India/UNDP project on endogenous Tourism and
Government of India’s Rural Tourism Scheme

The Tenth Plan has identified tourism1 as one of the major sources for generating
employment and promoting sustainable livelihoods in India. By 2007, direct and indirect
employment from tourism in India is slated to rise to 66 million from 41 million at present.
The tourism multiplier per Indian Rupee one million invested creates 47 jobs or virtually four
times the 12 jobs for equivalent investment in other sectors, exemplified in the Indian
provinces such as Kerala and Rajasthan through visitor services. This income route holds
special possibilities for the most disadvantaged segments of the society including
unemployed youth, women and the physically challenged while also bridging the shoulder
period to the lean season with regular income from a variety of tourism products. Since rural
India has a rich tradition of arts, crafts, and culture, rural tourism is seen as a major avenue
for generating livelihoods and enriching the indigenous heritage. The Ministry of Tourism
and UNDP have thus launched the Endogenous Tourism Project linked to the Rural Tourism
Scheme of the Government. The project will promote experimentation and exploration to
develop alternative models in rural tourism. Thirty-one sites across the country have been
identified with a view to developing a range of models in endogenous tourism.

Community ownership and management will be central to the project strategy. At


every stage in the implementation of the project, care will be taken to ensure the participation
of women, youth and other disadvantaged groups.
The UNDP project would establish common facility centers for crafts persons and village
“Kala- Kendras” to showcase the arts and crafts, history and culture, nature and heritage of
the identified sites. Wherever, the project will facilitate the construction of “Vishramsthals”
that will make use of locally available materials and traditional skills and knowledge of
building and construction. In order to provide services of international standards, the
communities will be trained in different aspects of the hospitality trade reception, lodging,
cuisine etc.
1
In 2003, India's travel-and-tourism industry is expected to have generated 529.4 billion rupees ($10.5 billion),
or 2% of the country's GDP, according to a World Travel and Tourism Council report. It adds that the broader
travel-and-tourism economy--that includes the railways, domestic air travel, tourism infrastructure building, and
the like--is expected to total $24.3 billion, which is 4.8% of GDP. If things stay on course, tourism is set to
flourish. The WTTC report says that over the next 10 years, India's travel-and-tourism industry is expected to
achieve annualized real growth of 7.9% to bring in $28.4 billion in 2013. By then the travel-and-tourism
economy overall is expected to hit an annual $68.3 billion.

1
The project would forge strong community-private sector partnerships and will bring
together on a common platform a host of players such as local communities, artisans, local
and state authorities, NGOs and private entrepreneurs.

1.2 About Jyotisar: One of the 31 Sites Selected For the Project

There is a marble chariot under the tree. The Jyotisar tank is 325m by 165m. There is
an old Siva temple in the area, which is sheltered by a banyan tree. Jyotisar village lies some
12 km from Kurukshetra on the Pehowa road.

Kurukshetra is a very holy place where the battle of Kurukshetra took place. This
event is described in the Mahabharata. It is believed that all the holy waters of India flow into
the Kurukshetra tank at the time of an eclipse. At that time, one million people come to bathe.
It is said that those who visit this area, reside here, take bath in the tanks here, or die in
Kurukshetra go to heaven after death. The Mahabharata states that one who dies at
Kurukshetra attains salvation. Kurukshetra is 160 km north of Delhi. The Kurukshetra area
covers a 160km (100 miles) area and is home to many places of pilgrimage related to the
Mahabharata events. It is said that after performing a great yagna, Lord Brahma created the
universe from here. It is said that Manu wrote his Manu-smriti here, and that the Rig and
Sama Vedas were compiled in this place. Kurukshetra is named after King Kuru, who also
performed a great sacrifice here. Bhisma Kund is where Bhisma lay on a bed of arrows. Ban
Ganga was created by Arjuna shooting an arrow into the earth there, and the now
subterranean Saraswati River once flowed at this place. The astronomical meridian goes
through Kurukshetra, Mathura, and Ujjain. Gita Jayanti is a major event celebrated in
December. This is the anniversary of the speaking of the Bhagavad-Gita.

1.3 Implementation of the Project

For the implementation, the Jyotisar project has been divided into two parts the
Software and the Hardware.

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Software: This relates to the activities for capacity building of the village community in
general and women and youth in particular to achieve the objectives of the project. Rs 20,
00,000 has been allocated for the software part. As this amount is not enough to carry out all
the software activities effectively, the organizations implementing the activities have been
asked to coordinate with other government schemes to fund their activities.
Hardware: This relates to developing of physical infrastructure supporting the software
activities. Under this the Government is planning to upgrade a natural pond near the temple
into a boating resort, build a tourism complex, which will house shops for cuisine,
Handicrafts etc. Something on the lines of Chokhi Dhani2, Rajasthan. Rs. 50, 00,000 has been
allocated for the hardware part.

S M Sehgal Foundation is looking after the software part of the project. Under this the
foundation will undertake the following activities:
1) Baseline data collection with focus on Tourism assets and resources.
2) Awareness generation and orientation among local population on endogenous tourism.
Identification and training of guides.
3) Establishment of community based institutions for tourism management and capacity
building.
4) Formation of a Village folk troupe to entertain the visitors.
5) Identification of women, for the cuisine group and group formation.
6) Development of a Women Handicraft Enterprise.

2.0 BACKGROUND OF THE STUDY

2.1 Socio-Economic Profile of the Village

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Chokhi Dhani: The only 5 Star ethnic village resort in India. An ethnic village resort with a blend of
rustic environment and modern amenities making it an important destination in Pink City.

3
Around 700 people visit Jyotisar Temple everyday. A one hour artistically designed
‘light and sound’ show3 is held every evening. This show boosts a presence of around 200
people everyday. Even though there is a sizable amount of people coming, still the people of
Jyotisar are not getting any benefit out of it. Now under the Endogenous Tourism Project the
government is trying to tap this potential of Jyotisar.
At present in the village around 58% of the population has per capita income below Rs.360
and only 2% of the population has per capita income more then Rs. 2390 (Source: Base line
Survey, S M Sehgal Foundation). The employment rate in the village is 39.5%. The women
employment rate being 26.3% (Source: Sensex data, 2001). The literacy rate among women
is 57.4% In the Jyotisar village 67% of the household are landless and out of these 73%
belong to the SC/ST and other backward castes (Source: Base line Survey, S M Sehgal
Foundation). While poverty affects households as a whole, because of the gender division of
labor and responsibilities for household welfare (acute in the rural areas) women bear a
disproportionate burden, attempting to manage household consumption and production under
conditions of increasing scarcity. Poverty particularly affects Women's and is directly related
to the absence of economic opportunities and autonomy, lack of access to economic
resources, including credit, land ownership and inheritance, lack of access to education and
support services and their minimal participation in the decision-making process.

2.2 Backing Women as Entrepreneurs

Micro enterprise development projects serve the objectives of poverty reduction, the
empowerment of women (in case of women entrepreneurs), employment generation and
enterprise development as an end in itself. Through women micro enterprise, the productive
3
Light and sound show: This ‘show’ tells visitors the story of the Mahabharata with all its dramatic
features, and also transmits the message of the Gita by way of gripping narrations and captivating visuals.
Through one such visual, Krishna unfolds the Cosmic Spirit which he represents and tells Arjuna, “Behold my
forms! Behold now the entire universe, animate and inanimate, all unified in My body! But you cannot see Me
with your eyes. Eyes divine I give you. Behold My divine power” (Gita, 11.7, 11.8). Herein lays the core of the
Indian thought which perceives Non-Dual Reality behind the smoke screen of ‘Surface-Duality’; a pattern of
existence which constitutes an organic web and in which every item of life is inextricably enmeshed with every
other item – a phenomenon of being ‘One in All and All in One’.

4
capacity of women can be increased through access to capital, resources, credit, land,
technology, information, technical assistance and training so as to raise their income and
improve nutrition, education, health care and status within the household. The release of
women's productive potential is pivotal to breaking the cycle of poverty so that women can
share fully in the benefits of development and in the products of their own labor. Sustainable
development and economic growth that is both sustained and sustainable are possible only
through improving the economic, social, political, legal and cultural status of women.

3.0 OBJECTIVES

The objectives of the study are:

• Identification of the village women interested to become handicraft entrepreneurs


• Identification of the handicrafts feasible to be promoted in this area
• Suggesting a suitable institutional mechanism for maximizing the success of the
project
• Identification of markets
• Preparation of a Project Proposal to solicit funds under a suitable scheme

4.0 METHODOLOGY

The study was carried out in three phases:


First Phase: consisted of the identification of the producer group and assessment of their
skills and needs. For this a series of meetings were carried out with the village women, where
the project was explained to them. Emphasis was on women who belong to the SC/ST
category or whose per capita income is less then Rs.360. The existing skill set of the women
was assessed by looking at the products they have made.
Second Phase: Consisted of the identification and selection of the partner organizations as
per the needs of the producer group.
Third Phase: Consisted of visits to the established handicraft shops like Fab India, Women to
assess the potential of such an enterprise. It was found that generally women frequent these
stores. These women look for comfort and style.

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5.0 LIMITATIONS

This report is based on my limited understanding of enterprise development so it may


not cover all the aspects of enterprise development.
While defining the markets, there is an assumption that all the people visiting Jyotisar will
visit the shop. Also the hardware component that the government is developing will ensure
greater flow of people.

6.0 EXPECTED OUTCOME OF THE STUDY

This project completed under the S M Sehgal Foundation is expected to provide the
NGO a framework for developing a women handicraft enterprise in the village of Jyotisar.

7.0 INTRODUCTION OF THE CLIENT4

4
Client: Client refers to those women who will be benefited by this Handicraft Enterprise Development project

6
The women who showed interest in the project mainly belonged to the BPL families
with no fixed source of income. Most of the women were illiterate or semiliterate. These
women are mainly agricultural laborers or are house wives. The women who have lands also
work in the fields besides doing the household chores. They are engaged in handicraft
activities like embroidery, kroatia, duarry making, toy making etc. but the kind of product
they make are meant for household purpose and lack the level of creativity and value that can
be sold in the market. The women are not skilled enough to make marketable products.

7.1 Characteristics

a) Women are less exposed to different environments and innovations, since they have
fewer opportunities for mobility.
b) Women face many cultural barriers like, married women have to wear a veil on her
face, they can not take decisions in the family, and they are not seen as bread winners.
All this undermines the confidence of women
c) The women are isolated and lack the confidence to change their present state of
affairs. They are apprehensive about their abilities to run an enterprise.

7.2 Need for Organisation

Also in developing rural women as entrepreneurs their perception of risk is a critical


factor in their taking up any activity. As already mentioned women have low confidence and
are apprehensive about taking up any business activity. Being in a group will enhance the risk
taking abilities of these women. Also these women have minimal entrepreneurial skills
required to run an enterprise. There is a pattern to entrepreneurial skills that can be explained
by reference to the following four dimensions (Gerber, 1995; Lichtenstein & Lyons, 1996),
like:

a) Technical Skills: ability to perform the key operations of that business;


b) Managerial Skills: ability to organize and efficiently manage the operations;
c) Entrepreneurial Skills: ability to identify market opportunities and create solutions that
capture those opportunities; and
d) Personal Maturity: self-awareness, willingness and ability to accept responsibility,
emotional development and creative ability.

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For a single women to develop all these skills may be difficult given their socio-
economic background of these women , but these skills can be developed in a group as roles
and responsibilities can be shared. Being in a group adds to the bargaining and negotiation
power of women as well. Women are known to be able to operate very well in group in the
public domain (SHGs and Mahila Mandals)

8.0 IDENTIFICATION AND SELECTION OF THE PARTNERS5

1. Financial Support6: This project can be financed under the Babasheb Ambedkar
Hastshilp Vikas Yojna as it fulfills all the eligibility criteria mentioned in the scheme.
5
Partners: All the institutions or schemes that will help in the Handicraft Enterprise Development
6
Ambedkar Hasthshilp Vikas Yojna: Annexure 1

8
This is a sample program; there can be other government schemes which can be
explored further. Sehgal Foundation will be the implementing agency and all the
funds for the establishment of the handicraft enterprise will be channelised through
the Foundation.

2. Infrastructural Support7: Under the Endogenous Tourism Project, common facility


centers for crafts persons and village “Kala Kendras” will be established, to showcase
the arts and crafts, history and culture, nature and heritage of the identified sites.

3. Institution Building and Entrepreneurship Training8: S M Sehgal Foundation


Gurgaon. The Sehgal Foundation was registered as a Trust in India in 1999 to further
the well-being of rural Indian communities. The Foundation assists programs that are
designed to promote sustainable development at the village level. The work of the
Foundation is supported be Sehgal family Foundation based in United States.
Currently, the Foundation its programs in the state of Haryana, India.

4. Skill Enhancement Training9: NIFD, Kurukshetra, will impart the skill enhancement
training to the women. NIFD the premier fashion design institute of India was first
opened at Chandigarh in July 1995. They are dedicated to infuse creativity and
professional out look in their design conscious students. Their faculty is highly
professional. They have 110 centers in India and 10 centers abroad.

9.0 MECHANISM FOR THE DEVELOPMENT OF THE


HANDICRAFT ENTERPRISE

9.1 INSTITUTION BUILDING

Formation of A Women’s Group:

7
Concerned Person: R K Anil, Project Support Officer, UNDP
8
Concerned Person: Anjali Makhija, Group Leader, S M Sehgal Foundation
9
Concerned Person: R K Aggarwal, Director, NIFD Kurukshetra

9
For developing this handicraft enterprise, a women’s group will be formed. This
group will have 15 members. The no of women in this group has been limited to 15, after
consultation with NIFD. NIFD feels that if the strength of the group will be more than 15 it
will be difficult to train them, as each member requires personal attention during the training
period, especially in this kind of training.
The members for this group will be selected from the group of interested women in the
village. The criteria for selection will be:

• Skill assessment test10: This test will be designed by NIFD in consultation with the
Sehgal Foundation. This will test the level of embroidery and stitching skills the
women have. The test will be conducted by the S M Sehgal Foundation.

• A qualitative assessment of the interested woman in terms of behavioral


characteristics like:
o Initiative
o Positive self esteem
o Inclination to accept challenge
o Problem solving attitude
o Risk taking attitude

Training Fee

The women member finally selected will have to deposit a Training Fee 11 the amount
of which can be decided in consultation with the women. Depending upon the socio-
economic conditions of the women, the training fee should be Rs.1000 but in no case it
should be less then Rs. 500.This training fee will decrease the drop out rate, the women will
take the training more seriously and also this is a way to mobilize corpus for the business. A
woman will become a member of the group only if she deposits the training fee amount.

10
Skill Assessment Test: Annexure 1
11
Training Fee: This is the initial amount every member will have to deposit. After completion of the training
this amount will be converted as the reserve capital of the group. If any member leaves the training in between
her fee will be forfeited. The amount will be given back only under circumstances like: medical problems or
family not allowing her to continue.

10
Motivational Training of the Group

After the selection of the group members, the Sehgal Foundation will have to ensure
the cohesiveness and sustainability of the group. They will have to work on two aspects, the
first is the process of preparing the individual and the second is preparing a group within
which exist mutually reinforcing individuals. The woman will have to make learn, with
conviction, that as a member of a wider in which women cooperate with each other, she has a
better chance of survival and a more viable from which to manage the economics of her
activities and the links of resources and markets. The woman should see themselves as a
group with common interests. The responsibility of the foundation will be to make them
realize, that a great deal of help can be obtained in overcoming technical problems if they
work together as a group. Once the women will start their enterprise they can divide functions
amongst themselves. Some women can look after the purchasing of the raw material, some
can take up the role of quality controllers and yet others can take up the role of selling the
finished products. In the preparation of the individual and the group the technical and the
economic learning of the individual is important, but more important is the preparation of an
individual to work in a group since mutual reinforcement can reduce risk perception of the
individual. Motivational training can be given for a week, before the skill enhancement
training starts. Then it can go along with skill enhancement training.

9.2 SKILL ENHANCEMENT TRAINING

A Tailor Made Professional Course

NIFD, Kurukshetra, will provide skill enhancement training to the women. As the
women are illiterate or semiliterate, NIFD has agreed to design a course catering to the needs
of these women. The course will be designed in consultation with the S M Sehgal foundation
and the group.

This will be a year long Course covering all the contents of NIFD’s Professional Fashion
Design Course12. S M Sehgal Foundation and NIFD can decide on the payment to be made to
NIFD for the training.

12
Professional Fashion Design Course: Annexure 2.

11
Design and Product Development

• NIFD along with Sehgal Foundation, UNDP, Ministry of Tourism and the group
members will develop special designs and products. Designs showcasing the history
of Jyotisar and Kurukshetra which will make the products unique. This will add value
to the products and will attract customers. Designs like Conch, Chariot, Peacock
Feather, Sudarshan Chakra, Flute, Shesh Nag, etc. or simple writing like Hare
Krishna, Radha Krishan and teachings of Geeta etc.

Sehgal Foundation will monitor this training.

9.3 ENTREPRENEURSHIP TRAINING

Developing entrepreneurs means increasing the entrepreneurs’ ability to achieve their


goals—specifically, to successfully engage in the kinds of work required to identify and
capture opportunities. Development is a competency, an ability to deal with new
circumstances. “It is an increase in capacity and potential, not an increase in attainment”
(Ackoff, 1981).

The entrepreneurship training is very important for the selected Group as the members
have no business exposure and they are low on confidence. The Ambedkar Hasthshilp Vikas
Yojna supports a project for three years, so the support of the Partner NGO will be there for
the period of three years, after that the group will have to carry out their business activity on
its own so this training should aim at making the group competent enough to run their
business.

This training should not be like classroom training, but the women should learn
entrepreneurship by actually being an entrepreneur. After the skill enhancement training,
Sehgal Foundation will help the women establish their business and for the first two years
will be actively involved in the business. Working under the guidance of Sehgal Foundation
will make the women learn the basic business concepts like:

Finance, Marketing, Costing, Production, Product, Packaging, Selling and Quality etc

Also, about the market in which, the business is operating. How competitive it is? Who are
the major competitors?

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Role of Sehgal Foundation Once the Business Is Established

Sehgal Foundation is the implementing agency for this project so assuring the smooth
running and sustainability of the project lies with the Foundation. As already mentioned for
the first two years after the establishment of the business Sehgal Foundation will be actively
involved in the business.

• SIGNATORY POWERS: As all the funds for the project are being channelised through
the Sehgal foundation so it will have the signatory powers for the first two years.
• FACILITATOR: Sehgal foundation will get the group registered as a Producers
Cooperative Society13 and also get them a trading license. The co-operative society is
the only alternative to protect the weaker sections of the society and to promote the
economic interest of the people. In situations when it is not possible to achieve the
target by individual effort, collective effort in the form of a co-operative society is the
best way.

For two years it will act as a facilitator, for the capacity building of the group.

An employee of Sehgal Foundation will look after the business of the group. The
foundation will ensure a proper institutional mechanism to carry out the business smoothly.

10.0 INSTITUTIONAL MECHANISMS

10.1 Board of Directors

The group will be registered as a Producer’s Cooperative Society. As there are only 15
members in the group, initially there will be three members in the board. The board will look
after the day to day functioning of the business. The election for the board members will be
held ever year. The number of board members can be increased once the number of members
increases as per the requirements.
13
Producers Cooperative Society: More about this is given in Annexure 4

13
10.2 Structure of the Group

The group will have women members only. Men can only be paid employees 14. There
will be a Group Leader who will be elected democratically. She will be a board member also.
Any member can contest for this post. Election will be held every year. There will be four
sections, finance, production, marketing& selling and design. One member from the group
will be accountable for each section. She will be the section head and her selection will also
be on democratic basis. Being a group leader or the section head will not confer any power to
the women member; she will be like the other members. This is being done to make a
member responsible for a business activity so that the business as a whole runs smoothly.

Group Leader will ensure that all the sections are functioning smoothly. The group
leader will represent the group in all the external dealings.

The production section will look after the procurement of raw materials, stitching,
embroidery, and packaging and also will ensure quality. Fabric for stitching and threads
&needles for embroidery will be the major raw material. This will make the major amount of
variable cost. So to keep costs low the raw material will have to be procured at the least cost
possible, while maintaining quality of the fabric.
The fabric can be procured from any big cloth house, as these houses have fabrics available
as cut-pieces which are of very less value to them. The group can get these cut-pieces at
reasonable rates. This will be doubly beneficial as the group will get both quality and variety
at reasonable rates.
The designs section will look after the development of new designs and products. As
the fashion changes after every three months so this section will have to ensure that their
products and designs are in sync with the changing fashions. For this they will have to
network with institutes like NIFT, NIFD etc to keep themselves updated with latest trends.

The marketing and selling section will look after the awareness generation like putting
of hoardings, placing of ads in the newspaper etc. This section will also be responsible for the
sales outlet.

14
Paid Employees are to ensure that the business is not taken over by the male relatives of the members.

14
The finance section will look after the finances. All the transactions will be done in a
transparent manner and all the members will have an access to the financial records.

Group Leader

Design Finance Marketing & selling Production

All the decisions like the delegation of responsibilities to members will be taken by
consensus.

10.3 Profit Sharing

All the profits will be shared equally by the group. There will not be any salary for the
group members. This is so because all the members will be patronizing equally for business.
Whatever profit the group will make, 1/3 part of it will be kept as reserve for the development
of business and the rest will be shared by the group members. There can be a different
mechanism for profit sharing.

10.4 Outsourcing of Work

In case the members are not able to meet the demand they can outsource the work on
contractual basis and to women only. But the women will have to work at the Creative Center
under the supervision of a trained member. This will ensure quality. The person will be paid
on per piece bases. Different arrangements could be made as per the requirements of the
business.

10.5 Conflict Resolution

The emphasis should be on avoiding conflicts.


• Transparency in business transactions. All the financial records should be kept open
for every member to see
• Every member should be clear of her roles and responsibilities

15
• All decisions should be taken by consensus
• All the members to be equal partners in the business
Even after all this, if there is a conflict, a meeting of all the members should be held
where every member should put her viewpoint. The members should come to a consensus to
resolve the conflict amicably. If the members fail to resolve the conflict, the monitor from the
Sehgal Foundation should resolve it.

10.6 Expulsion of Member

If a member is not discharging her duties to the satisfaction of the group she can be
expelled from the group. To expel a member two third majority will be needed. So if there are
15 members, 10 members should vote for expulsion.

10.7 Induction of New Member

If there is a consensus in the group, new members can be inducted. But only women
will be inducted. The interested women will have to go through the same selection test, which
the present members went through. For six months, she will be a trainee and her work will be
assessed. If for six months she works satisfactorily then she will be inducted in the group. As
a trainee she will get a salary, which the group can decide.

10.8 Sustainability

It has to be ensured at two levels:

Group Level: The group must stay together. All the conflicts latent or obvious have to be dealt
at the earliest. The group should realize that staying together only will reap them benefits. All
the members are complementary to each other.

16
Business Level: To remain in business the planning process has to be very dynamic.
Management of inventory both the raw material and the final products will be crucial to the
success of the business. Production must take care that there is no piling of inventories.

11.0 PROFILE OF THE BUSINESS

11.1 Business Idea

This is a handicraft business where a group of women will make embroidered


garments and other handicraft items and sell them. The manufacturer will directly sell to the
customer through an outlet.

11.2 Business Name

Geeta Dham

17
11.3 Business Goal

• Creation of wealth in a collective manner


• Empowerment of Women

11.4 Business Location

In the Endogenous Tourism Project for Jyotisar, it is proposed to build a theme village
at Jyotisar as part of the Hardware component. This theme village will be managed by the
Village Tourism Committee15. In the theme village there will be common facility center for
crafts development. This center will be given to the group of women who are being
developed as handicraft entrepreneurs under the software part of this project.

11.5 Type of Business

The business is a Producer Cooperative Society with 15 members to start with.

11.6 Competitive Advantage

• Support of the Partner Organizations: The group is being supported by UNDP,


Ministry of Tourism, Sehgal Foundation and NIFD. Success of this group enterprise is
a prestigious issue for these organizations, so they will provide all kind of support
required to make this a success story. Ideally the group should be registered with these
organization and get invitation for trade fairs and other promotional activities
(beneficial for the groups business) held by these groups.
• Trained at NIFD: The group is being trained by NIFD a premier fashion designing
institute. Geeta Dham is a new name but people know NIFD and so in the advertising
campaigns, trained at NIFD will be mentioned. This way the group will not face
identity crises, at least it will make people curious about the business offering and
people will visit the outlet. NIFD also holds annual fashion shows for its students
where the group can participate; this will help them in marketing themselves.
• Uniqueness of the Concept: Through the Endogenous Tourism Project, the
government is aiming at promoting traditional rural handicrafts. But as Jyotisar does
not have any ethnic handicraft art of its own, so this gives a room to create a new art
style, which is a blend of traditional and modern as well as rural and urban styles.

15
Village Tourism Committee: This is a committee of villagers entrusted with the responsibility of managing the
tourism related activities in the village.

18
Making this project a base, rural women are being trained to set up their own business
enterprise.
• First Movers Advantage: At the proposed business location there is no shop dealing in
handicraft items at present.
• Mythological Importance: Jyotisar holds a special place in Hindu mythology. With
the help of NIFD, special embroidery designs can be created to cash on that aspect.

11.7 Business Activities

The major business activities will be procurement of raw material, Stitching,


embroidery, packaging, marketing and selling. The selling will be done by the members of
the Geeta Dham Enterprise themselves, through their own outlet.

The women can also take up order from business houses, Professional organizations,
Educational Institutes, etc. to embroider their logos.

11.8 Production

There will be basically two major activities stitching and embroidery so there will be
two units one for each. There will be freedom to switch between the units provided the
quality is not hampered. Stitching, embroidery and packaging will be done at a center called
the “Creative Center”, to ensure quality and professional working conditions. The timings can
be decided by the women as per their convenience.

11.9 Costing

Costs will have two components; Fixed Costs and variable cost.

Fixed Costs: Fixed costs are costs necessary to operate a business that stay the same over the
range of the sales the business makes. This will include
• Lease Amount
• Bills like Telephone, electricity
• Salary of paid employees
• Tools and machinery cost
• Marketing and Advertising costs

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Variable costs: Variable costs are costs depending on the volume of sales. This will include
• Wages of the group members and women who are doing work on contract
• Packaging Cost
• Raw material Costs

11.10 Pricing

While doing the costing, the group’s labor hours has not been accounted for, so
markup on products will have to take care of that. At least 75 to 100 % markup should to be
there.

11.10 Products

Embroidered Garments – Ladies Kurtas, Ladies Tops, Skirts, Pants, Salwar-Kameej,


Saree, Pyjama, Jackets, Stols, Dupatta, Lingerie etc.
Furnishings like Durri, Asan, Telephone mat, embroidered cushion covers, embroidered bed
sheets
Other items like bags, wallets, mobile cases, Spectacle cover, Stuffed Toys etc

12.0 MARKETING

Marketing is an organizational function and a set of processes for creating,


communicating, and delivering value to customers and for managing customer relationships
in ways that benefit the organization and its stakeholders.

12.1 Identification of Markets

Initially the market for the business will be:

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• People coming to Jyotisar: These are devotees, foreign Tourist, people who just come
for the light and sound show, people who are attracted by the mythological
importance of this place etc.
• Kurukshetra University (KU) Students: KU is 4Km from Jyotisar.
• Professional Organizations and educational Institutes
Professional Organizations and educational institutes have logos. They generally get
their logos embroidered on caps, shirts, blazers etc. The group can take orders for
embroidering logos from them. Initially the Sehgal Foundation can use its own
network of organizations to give business to the group. The group also can have a
brochure or pamphlets, offering their services and these can be sent to institutes or
they can also place ads in the newspapers.

12.2 Advertising

Geeta Dham Enterprise will be a new name in the handicraft business. The main
purpose of advertising will be to make the people aware of the business and its offering.
• Hoardings can be put at the entrance of the proposed complex and at the Kurukshetra
University gates.
• Ads can be placed in vernacular press.
• Can have display center with organizations like Sehgal Foundation, UNDP etc
• UNDP is making a website to promote the 31 Tourist destinations selected under the
Endogenous Tourism project. Add can be placed at that site.
• Participation in craft and fashion exhibitions.
• To attract customers’ especially foreign tourist can be asked to visit the Creative
center where they can embroider souvenirs for themselves.

12.3 Souvenirs Selling

Jyotisar is religious place and the government is promoting it in a big way. Being the
only handicraft shop in the area would ensure that some people coming to Jyotisar will visit
this shop. Hence the initial strategy would be that if a person comes to the shop then he/she
must buy something from the shop. As the products will have designs depicting the
mythological importance of Jyotisar the visitors can buy them as souvenirs from their visit to

21
Jyotisar. To ensure buying, the price range for the products will be between Rs. 20 to Rs.
500.

For every month target for production and sales should be made very clear and all
through the month effort should be made to achieve those targets. In case the group fails to
meet those targets, a group meeting should be held to discuss the cause for failure. This is a
start-up business so revenue generation should be central to the business.

Table 1: Products and the Tentative Range

Price Range Products


Rs. 20 to Rs. 150 Mobile case, Spectacle Case, Wallets,
Bags, Small toys, etc.
Rs 150 to Rs. 500 Ladies Kurtas, Suits, Duppatas, Stols, etc.

13.0 FUTURE PROSPECTS

Once Geeta Dham gets established as a profitable business organization then they can
have an exclusive range of embroidered garments for women only. This can be done may be,
after two years, as by that time the business will be established and also the members will
have mastered embroidery and stitching so that they will be able to make quality designer
embroidered garments for women.

The marketing strategy for this will be based on segmentation, targeting and
positioning.

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13.1 Segmentation

A market segment consists of a group of customers who share a similar set of wants.
Thus we would distinguish between cloth buyers who are primarily seeking low cost
everyday wear and those seeking party, or outings dresses. It is important not to confuse a
segment and a sector. A car company might say that it would target young, middle- income
car buyers but the problem is that this group of buyers will differ about what they want in a
car. Some will want a low cost car and others will want an expensive car. Thus young,
middle-income car buyers are a sector not segment.

Segmentation can be done on the following basis:

Demographic segmentation can be on the basis of variables like age, family size,
gender, income, occupation, education, religion, race etc. Demographic segmentation is
effective as consumer wants, preferences and usage rates are often associated with
demographic variables.

Other segmentation variables are geographic, psychographic and behavioral.

As it is clear that the target customers will be women only, now these women can be
segmented on the bases of their occupation because occupation plays a great role in the way
people dresses.

Characteristics of the three segments:

a) Students: This group looks for trendy and “out of the box” kind designs and cuts. They like
to experiment with their clothes and they want to look different from others.

b) Professionals: This group looks for very sober designs, and cuts. They prefer subdued
colors. They want their clothes to be comfortable and sophisticated.

c) Housewives: This group wants value for money more than any other group. This is the
group who will generally shop for furnishings.

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Which Segments to Target?

In evaluating different market segments, it is necessary to look at two factors: the


segment’s overall attractiveness and the company’s objectives and resources. Does a potential
segment have characteristics that make it generally attractive, such as size, growth,
profitability, scale economies and low risk? Does investing in the segment make sense given
the firm’s objectives, competencies and resources? Some attractive segments may not mesh
with the company’s long run objectives, or the company may lack one or more necessary
competencies to offer superior value.

Having evaluated different segments, the company can consider five patterns of target market
selection:

• Single Segment Concentration: Through concentrated marketing, the firm gains a


strong knowledge of the segment’s needs and achieves a strong market presence.

• Selective Specialization: The firm selects a number of segments, each objectively


attractive and appropriate. There may be little or no synergy among the segments, but
each promises to be a moneymaker.

• Product Specialization: The firm makes a certain product that it sells to several
segments.
• Market Specialization: The firm concentrates on serving many needs of a particular
customer group.

• Full Market Coverage: The firm attempts to serve all customer groups with all the
products they might need.

Product Specialization seems to be an appropriate segmentation strategy considering


Geeta Dham may not have the production capacity to target any single segment effectively. It
may not play a mass-market game as the embroidery takes time.

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13.2 Positioning in the Market

Positioning is the act of designing the company’s offering and image to occupy a
distinctive place in the mind of the target market. The end result of positioning is the
successful creation of a customer focused value proposition, a cogent reason why the target
market should buy the product.
An important point to remember about positioning is that it is not what is done to a product.
Positioning is done to the mind of the prospect.

The basic strategies in positioning which a firm can follow:

• Attribute Positioning: The Company positions itself on an attribute, such as size or


number of years in existence.

• Benefit Positioning: the product is positioned as the leader in a certain benefit.

• Application Positioning: positioning the product as best for some use or application.

• Competitor Positioning: the product claims to be better in some way than a named
competitor.

• Quality or Price Positioning: The product is positioned as offering the best value.
• Product Category Positioning: the product is positioned as the leader in a certain product
category.

Geeta Dham can follow the Product Category Positioning stating that it excels in the
product category of embroidered garments for women. The company can follow claim itself
as a pioneer in offering a whole range of embroidered garments

13.3 Creating a Strong Brand

Geeta Dham can create a brand in Ladies embroidered garments. Brand name of the
company should take forward the positioning stand and strengthen it.

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Following is the Brand Name and Punch line that Geeta Dham should have on its boards,
advertisements etc:

PANCHJANYA
Embroidery in-vogue

We Offer Highly Fashionable Embroidered garments. Our products


include Ladies Kurtas, Ladies Tops, Skirts, Pants, Salwar, Saree,
Pyjama, Jackets, Stols, Dupatta, etc.
Special Craft Accessories also Available

Communicating the Company’s Brand Positioning

To communicate a company’s brand positioning, a marketing plan should include a


positioning statement.
Following can be the positioning statement of PANCHJANYA:
To the women who like to be modern with a traditional touch to it, Panchjanya is the brand
to look for

14.0 SCHEME FOR PROJECT FUNDING

As in the Endogenous Tourism Project it is envisaged that the NGO looking after the
Software part should coordinate with other Government Schemes for the better
implementation of the programs.

14.1 Ambedkar Hasthshilp Vikas Yojna (AHVY)

For the Enterprise development program the NGO can seek financial assistance under
the AHVY scheme of the Ministry of Textiles, Government of India.

26
Objectives of the Scheme

• To organize artisans to enable them to take up economic activity for sustainable


development through a participatory mode.
• To empower artisans by making them active entrepreneurs cum primary stake holders
in the process of development and bringing them to a visible platform for easy access
to domestic and overseas market
• To upgrade artisan’s skill through appropriate Design & Technological Intervention so
as to enable to produce value-added items.
• To provide adequate infrastructure support for improved quality and productivity and
to enable artisans’ access to a larger market segment, both domestic and international.
• To ensure effective collective participation of all members involved in production and
marketing process for optimal growth in human resource, production, business and
income.

Eligibility

Financial assistance under this scheme can be given to/ through the reputed
NGOs/Cooperatives/Trusts/ State Handloom and Handicraft Development Corporations/
Federation of NGOs/ DRDA/ NIFT/ NID/ University Department etc. registered under proper
statute for sustainable development of artisans.

Components

AHVY envisages external intervention of four types:


• Social Intervention : It has two sub groups
a) Diagnostic Survey and formulation of Project Plan
b) Community Empowerment- Mobilization of Artisans

• Technological Intervention
a) Training of the Artisans
b) Design and Product Development

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• Marketing Intervention
a) Publicity
b) Exhibitions and Trade Fairs

• Financial Intervention
a) Margin Money or the start-up capital to the Artisans.
b) Service charge to the Implementing Agency

14.2 Proforma for Submission of Proposal under AHVY

For an organization seeking financial support under this scheme a Performa has to be
submitted to the DC, Handicraft office of its respective State. A filled copy of the Performa
has been enclosed with this report as annexure 1.

15.0 CONCLUSIONS

The Handicraft Enterprise Development a part of “Endogenous Tourism Project” of


the UNDP and the Ministry of Tourism, Government of India, is an opportunity for the
women of Jyotisar. Under the project the women are being provided all kind of support and
training to become entrepreneurs. Here the women will be the manufacturers as well as
marketers. As there is no intermediary involved so all the profits will go to the women. What
will be the profit, it’s difficult to tell at this moment because the scale of business is yet to be
decided. But in this business setup, all the risk will have to be borne by the women only. All

28
the planning will have to be done in a manner so that there is minimum risk involved. Finally
the success of the business will largely depend on the women. It is the women who have to
take advantage of this opportunity.

REFERENCES

Rao T. Venkateswara and Udai Pareek, Developing Entrepreneurship: Ahmedabad:


Sanjiv Printery (1978)

Office of District Commissionar (Handicrafts) Ministry of Textiles, Governemt of


India, Guidelines of Babasaheb Ambedkar Hastshilp Vikas Yojna

Ministry of Tourism and UNDP, Endogenous Tourism Project Guidelines (2004)

29
Bhargava Aruna, Everyday Entrepreneurs: New Delhi: Vikas Publishing House (2001)

Mariotti Steve, The Young Entrepreneur’s Guide to Starting and Running a Business:
New York: Three Rivers Press (1996)

UNDP and Department of Science and Technology, Enterprise Development Education for
Vocational Students, Trainers Manual

www.baif.com/additional_wom2.htm

www.swwb.org/English/2000/why_focus_on_poor_women.htm

www.aidindia.org/publications/ proceedings/india_1999/speaker16.htm

www.hindu.com/thehindu/biz/2003/06/30/stories/2003063000010300.htm

www.nios.ac.in/secbuscour

ANNEXURE 1

PERFORMA FOR SUBMISSION OF PROPOSAL UNDER AMBEDKAR HASTHSHILP


VIKAS YOJNA

1. Organization Profile
(a) Name of the Organization
S M Sehgal Foundation

(b) Address

30
289, Sector 17A, Gurgaon, Haryana, 122001

(c) Ph No. (With the STD code):


+ 91 124 2397621, 5010426

(d) Fax No.


+91 124 2346733

(e) E- Mail
smsf@smsfoundation.org
(f) Name & Designation of Chief Functionary
Dr. Suri Sehgal, Chairman

(g) Name of other key functionary


Jay Sehgal, Executive Director

(h) Registration details Act. Under which registered:


Trust Deed (dated 22nd June 1999)
Office of Registrar
New Delhi

(i) FCRA No.


231660158, Under Secretary to the Government of India
(Ministry of Home Affairs)

(j) Activities in Brief: The foundation is working in Rural Haryana focusing


on four activities:

Table 2: ISVD Integrated Sustainable Village Development Program

31
Water Management Collection
Conservation
Equitable Distribution
Environmental Protection

Rural Health Prevention


Sanitation
Curative Linkages
Traditional Practices
Income Enhancement Agriculture
Self help Groups
Vocational Training
Entrepreneurship
linkages
Family Life Education Literacy
Gender Sensitization
Skills Training
Recreation

(h) Thrust Area

32
ISVD: Integrated Sustainable Village Development

(i) Experience in the area in which funding is sought


Sehgal Foundation has formed women SHGs in the villages.
Sehgal foundation has taught around 500 girls, stitching, basic embroidery and
other handicraft skills

(j) Experience in SGSY or any other Scheme of GOI/State Govt. based on


SHGs
NA
2. PROJECT PROFILE
(a) Title of the project
Geeta Dham

(b) Aims & Objectives


 Capacity building of the women
 Establishment of the women’s enterprise
 Ensuring the sustainability of the enterprise

(c) Duration
3 years

(d) Proposed Budget for the Project


Training of members Rs. 93,500
Design and Product Development Rs. 10, 00,000
Workshop and symposium Rs. 6, 70,000
Brochure Rs. 4, 50,000
Margin Money 16 Rs. 60,000
Total Rs. 22, 23,500

(e) Suggestive: Materials to be included in the project:


 Project goal

16
Margin Money: Rs 4000 per member will be given, as initial investment to start up the enterprise.

33
Creation of wealth collectively
 Project area
Jyotisar, Kurukshetra
 Target group indicating Number of artisans
Initially a group of 15 members will be formed
 Name of the Crafts
Different kinds of embroidery
 Problems to be addressed
Non marketable skills
Low self confidence
Market linkages
 Whether any partner is contributing funds for this project, if so name
of the organization and activity
UNDP is providing infrastructural support for this project

(f) Strategy/Action Plan


Has been dealt in the main report

(g) Monitoring and Evaluation Indicators


Sehgal Foundation will employ a monitor who will look after the business of
the group for two years.
Evaluation indicators for the business will be the Return on Investment (ROI)
Evaluation indicator for the group will be the staying together of the group, the
addition of new members and the personal growth of each member.

(h) Project Sustainability


To ensure sustainability of the project Sehgal foundation is employing a
person who will monitor as well as facilitate the functioning of the group for
two years. This person will look after all the aspects of the business. The
women will be groomed under the guidance of that person to become
successful entrepreneurs.
Other sustainability issues have been dealt in the report.

34
ANNEXURE 2

SKILL ASSESSMENT TEST

This test can be conducted by S M Sehgal Foundation in the presence of NIFD


supervisor. The women can be asked to do embroidery on a piece of cloth or stitch a garment.
All the material for the test will be arranged by the Sehgal Foundation after consulting with
NIFD.

The criteria for assessment should be:


• Creativity
• Quality of work

35
ANNEXURE 3

THE COURSE CONTENT OF NIFD’S FASHION DESIGNING COURSE:

3.1 FASHION CREATION: Consists of Four Subjects


a) Elements of Design- Principles involved in creation of designs
b) Sketching- Sketching of basic croquie (body form) flesh Figure and draping of
different garments on the figure.
c) Design Idea- Creation of different designs of various Garments
d) Computer aided Designing.

3.2 GARMENT CONSTRUCTION: Consists of two subjects


a) Drafting/ Pattern Making
b) Stitching- The subject provides basic skills required to Sew, Press construct and
analyze the basics of high quality garment.

3.3 DECORATION OF GARMENTS:

It consists of two subjects

a) Textile Techniques-lines& shapes, Color theory, Texture & Printing, Fabric Study.
b) Embroidery- various stitches of hand embroidery and Practice of embroidery work on
cloth/garment.

36
3.4 MERCHANDISING:

It consist of one paper i.e. merchandising- It includes marketing management skill,


Business correspondence, Reasoning Skills, fashion terminology, Presentation Skills.

ANNEXURE 4

CHARACTERISTICS OF CO-OPERATIVE SOCIETY

A co-operative society is a special type of business organization different from other


forms of organization you have learnt earlier.

4.1 CHARACTERISTICS

Open Membership

The membership of a Co-operative Society is open to all those who have a common
interest. A minimum of ten members are required to form a cooperative society. The Co–
operative society Act does not specify the maximum number of members for any co-
operative society. However, after the formation of the society, the member may specify the
maximum number of members.

Voluntary Association

Members join the co-operative society voluntarily, that is, by choice. A member can
join the society as and when he likes, continue for as long as he likes, and leave the society at
will.

State Control

37
To protect the interest of members, co-operative societies are placed under state
control through registration. While getting registered, a society has to submit details about the
members and the business it is to undertake. It has to maintain books of accounts, which are
to be audited by government auditors.

Sources of Finance

In a co-operative society capital is contributed by all the members. However, it can


easily raise loans and secure grants from government after its registration.
Democratic Management

Co-operative societies are managed on democratic lines. The society is managed by a


group known as “Board of Directors”. The members of the board of directors are the elected
representatives of the society. Each member has a single vote, irrespective of the number of
shares held. For example, in a village credit society the small farmer having one share has
equal voting right as that of a landlord having 20 shares.

Service Motive

Co-operatives are not formed to maximize profit like other forms of business
organization. The main purpose of a Co-operative Society is to provide service to its
members. For example, in a Consumer Co-operative Store, goods are sold to its members at a
reasonable price by retaining a small margin of profit. It also provides better quality goods to
its members and the general public.

Separate Legal Entity

A Co-operative Society is registered under the Co-operative Societies Act. After


registration a society becomes a separate legal entity, with limited liability of its members.
Death, insolvency or lunacy of a member does not affect the existence of a society. It can
enter into agreements with others and can purchase or sell properties in its own name.

Distribution of Surplus

38
Every co-operative society in addition to providing services to its members also
generates some profit while conducting business. Profits are not earned at the cost of its
members. Profit generated is distributed to its members not on the basis of the shares held by
the members (like the company form of business), but on the basis of members’ participation
in the business of the society. For example, in a consumer co-operative store only a small part
of the profit is distributed to members as dividend on their shares; a major part of the profit is
paid as purchase bonus to members on the basis of goods purchased by each member from
the society.

Self-Help Through Mutual Cooperation

Co-operative Societies thrive on the principle of mutual help. They are the
organizations of financially weaker sections of society. Co-operative Societies convert the
weakness of members into strength by adopting the principle of self-help through mutual co-
operation. It is only by working jointly on the principle of “Each for all and all for each”; the
members can fight exploitation and secure a place in society.

4.2 FORMATION OF A CO-OPERATIVE SOCIETY

A Co-operative Society can be formed as per the provisions of the Co-operative


Societies Act, 1912. At least ten persons having the capacity to enter into a contract with
common economic objectives, like farming, weaving, consuming, etc. can form a Co-
operative Society.

A joint application along with the bye-laws of the society containing the details about
the society and its members has to be submitted to the Registrar of Co-operative Societies of
the concerned state. After scrutiny of the application and the bye–laws, the registrar issues a
Certificate of Registration.

REQUIREMENTS FOR REGISTRATION:

1. Application with the signature of all members

2. Bye-laws of the society containing:

39
(a) Name, address and aims and objectives of the society;
(b) Names, addresses and occupations of members;
(c) Mode of admitting new members;
(d) Share capital and its division.

4.3 ADVANTAGES OF HAVING A CO-OPERATIVE SOCIETY

Having a Co-operative form of business organization has the following advantages:

Easy Formation

Formation of a co-operative society is very easy compared to any other forms of


business. Any ten adults can voluntarily form an association and get it
Registered with the Registrar of Co-operative Societies.

Open Membership

Persons having common interest can form a co-operative society. Any competent
person can become a member at any time he/she likes and can leave the society at will.

Democratic Control

A co-operative society is controlled in a democratic manner. The members cast their


vote to elect their representatives to form a committee that looks after the day-to-day
administration. This committee is accountable to all the members of the society.

Limited Liability

The liability of members of a co-operative society is limited to the extent of capital


contributed by them. Unlike sole proprietors and partners the personal properties of members
of the co-operative societies are free from any kind of risk because of business liabilities.

Elimination of Middlemen’s Profit

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Through co-operatives the members or consumers control their own supplies and
thus, middlemen’s profit is eliminated.

State Assistance

Both Central and State governments provide all kinds of help to the societies. Such
help may be provided in the form of capital contribution, loans at low rates of interest,
exemption in tax, subsidies in repayment of loans, etc.

Stable Life

A co-operative society has a fairly stable life and it continues to exist for a long
period of time. Its existence is not affected by the death, insolvency, lunacy or resignation of
any of its members.

4.4 LIMITATIONS OF HAVING CO–OPERATIVE SOCIETY

Limited Capital

The amount of capital that a cooperative society can raise from its member is very
limited because the membership is generally confined to a particular section of the society.
Again due to low rate of return the members do not invest more capital. Cooperative has to
depend on Government’s assistance which is often inadequate for most of the co-operative
societies.

Problems in Management

Generally co-operative societies do not function efficiently due to lack of managerial


talent. The members or their elected representatives are not experienced enough to manage
the society. Again, because of limited capital they are not able to get the benefits of
professional management.

Lack of Motivation

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Every co-operative society is formed to render service to its members rather than to
earn profit. This does not provide enough motivation to the members to put in their best effort
and manage the society efficiently.

Lack of Co-Operation

The co-operative societies are formed with the idea of mutual co-operation. But it is
often seen that there is a lot of friction between the members because of personality
differences, ego clash, etc. The selfish attitude of members may sometimes bring an end to
the society.

Dependence on Government

The inadequacy of capital and various other limitations make cooperative societies
dependant on the government for support and patronage in terms of grants, loans subsidies,
etc. Due to this, the government sometimes directly interferes in the management of the
society and also audits their annual accounts.

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ANNEXURE 5

NAMES OF THE WOMEN WHO SHOWED INTEREST IN THE PROJECT

Sr. No. Name Husband's name


1 Usha Sishipal
2 Sudesh Mamchand
3 Padmavati Ishwarchand
4 Balvinder Kaur Surendra Singh
5 Suman Devi Hari Ram
6 Prem Devi Ravi Dutt
7 Sukhvinder Kaur Mahendra
8 Satya Raghuvir
9 Joginder Ramji Lal
10 rani Sant Ram
11 Kanta Om Prakash
12 Ram Murti Krishna Murari
13 Bubli Ashok Kumar
14 saroj Punnu Ram
15 Parmal Pala Ram(Father)
16 Prakashi Shiv Kumar
17 Rajni Pala Ram
18 Bimal Ram Nath
19 Balvinder Kaur Lakhvinder
20 Paramjit Sardara
21 Suman Devi Sohan Lal
22 Kusum Amarjit
23 Santosh Surendra Singh
24 Lila Devi Sunder Lal
25 Radha Ashok Kumar
26 Sunita Vinod Kumar
27 Bimla Mohan Lal
28 Sunita Rulwo
29 Lila Devi Bita Ram

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