BY: POONAM VERMA

MBA-1ST YEAR

Content Introduction of the Industry

Economic Contribution

Objectives of the study

Need of the study

Key facts of Indian Handicraft Industry

Overview of export

Types of Handicraft

Exports of Indian Handicraft

Major Importers

Major player

Major Objectives of the Industry

Pestel analysis

Five forces

SWOT Analysis

Findings consecution

Thank you

INTRODUCTION

DEFINATION ACCORDING TO GOVT. OF INDIA :

“Handicraft can be defined, which is made by hand; should have someartistic value; they may or may not have functional utility.”

Handicrafts are made from raw materials and can be producedin unlimited numbers. Such products can be utilitarian, aesthetic,artistic, creative, culturally attached, decorative, functional, traditional,religiously and socially symbolic and significant.

INDIAN HANDICRAFT INDUSTRY:The Handicraft Industry is one of the important productive

sectors. Various attempts have been made to define this broad and diversified industry. Crafts are unique expressions that represent a culture, tradition and the heritage of a country. India is well known for its exotic crafts legacy and tradition. It is the land of art and crafts, a country of rich culture, history and

CONTD.-and traditions.•A wide range of Indian Crafts represents the diversity of crafts tradition in India.•Variety of designs and finishes are available in Indian market that reflects excellent artistic skills of craftsmen are great in demand globally.•India is one of the important suppliers of handicrafts to the world market.•This sector is economically important from the point of low capital investment, high ratio of value addition, and high potential for export and foreign exchange earnings for India.•As per the latest updates, there are more than 23 million craftspeople in India today engaged in the growth of Indian handicrafts industry

CONTD.

•Basically 9 handicraft items are mostly exported fromIndia that are metal ware, wood ware, hand-printedtextiles, hand-knotted and embroidered textiles, leathergoods, stoneware, carpets and floor coverings.

ECONOMIC CONTRIBUTION

CONTD.

1. Industry is playing a major role in the development of Indian economy.

2. As per the latest updates, there are more than 23 million craftspeople in India today engaged in the growth of Indian handicrafts industry.

3. Second largest employment sector in India, just after Agriculture.

4. 63% of exports turnover.5. The industry is spread allover the country mainly in rural and

urban areas.6. Most of the manufacturing units are located in rural and

small towns, and there is huge market potential in all Indian cities and abroad.

CONTD.

7. The Indian Handicraft Industry is showing continuous growth rate of 20%every year. Handicrafts industry is one of the important segments of decentralize sector in India.

8. According to the national census of handicrafts, undertaken by the National Council for Applied Economic Research the value of handicrafts produced last year were of Rs.26,213 Crore.

9. The Indian Handicraft Industry is a $100 billion industry worldwide.10. India’s contribution in world market is 1.2%11. The total exports of crafts items: - Rs. 13412.92 Crore.12. Industry’s share in India's exports:- 1.51 %

Objectives of the study

The main object of the study is to know about the handicraft industry.

Another object is to know the specification of the work and its branches.

Need of the study

There is a need of study because it was help inanalysing the actual condition of handicraft industryin India.

And also for the analysing the needs of the HandicraftItems.

Another factor for need of study is that to be evaluatethe impacts of the handicraft in different place.

KEY FACTS OF INDIAN HANDICRAFT INDUSTRY India’s rich cultural diversity and heritage provides a unique and huge

resource for developing craft products. Handicrafts industry is one of the important segment of decentralized

sector in India. According to the national census of handicrafts, undertaken by the

National Council for Applied Economic Research the value ofhandicrafts produced last year were of Rs.26,213 Crore.

Provides huge employment opportunities to artisans that includewomen and people belonging to backward and weaker society (6million artisans).

The Indian Handicraft Industry is a $100 billion industry worldwide. India’s contribution in world market is 1.2% The total exports of crafts items: - Rs. 13412.92 Crore. Industry’s share in India's exports:- 1.51 %

Overview of export

TYPES OF HANDICRAFTHandicrafts products can be distinguished into following:

Metal ware Wood ware Hand printed textiles, Embroidered goods & Shawls Carpets Bamboo products Zari goods Imitation jewellery Paintings & Earthenware Jute products, Marble Sculpture Bronze Sculpture, Leather Products and Other miscellaneous handicrafts

Handicrafts are classified into two categories:

•Articles of everyday use

•Decorative items

The craftsmen use different media to express their originality. The diversity of

the handicrafts is expressed on textiles, metals – precious and semi-precious,

wood, precious and semi-precious stones, ceramic and glass.

Textile based handicrafts:

Hand printed textiles including block and screen printing, batik, kalamkari (hand

printing by pen) and bandhani (tie and die) are used in products ranging from

bed-covers to sheets, dress material to upholstery and tapestry. The famous

embroidered articles of silk and cotton, often embellished with mirrors, shells,

beads, and metallic pieces are also found in India. Embroidery is done too on

leather, felt and velvet etc. This segment of the industry accounts for almost

half a million strong employment in addition to a large number of designers,

block makers, weavers and packers involved in the trade

Clay, Metal and Jewellery:

Brass, copper, bronze, bell metal are used for a variety of wares

and in a variety of finishes. Scintillating ornaments are available in

a wide range of patterns, styles and compositions. Made from

precious metals, base metals, precious and semi-precious stones;

these ornaments have traditional as well as modern styles.

Woodwork:

Wooden articles in India range from the ornately carved to the

absolutely simple. One can find toys, furniture, decorative articles,

etc. bearing the art and individuality of the craftsman. India is

known particularly for its lacquered wood articles.

Stone Craft:

The intricately carved stoneware made of marble, alabaster or

soapstone, etc., inlaid with semiprecious stones carry on the

heritage of Indian stone crafts.

Glass and Ceramic:

Glass and ceramic products are a fast upcoming segment

in the handicrafts from India. The age-old production

process of mouth-blowing the glass instills a nostalgic

feeling. The varied shapes of ceramic and glass in a

number of colours, would appeal to Western aesthetics

while retaining the Indian touch.

Craft concentration Areas:

A wide range of handicrafts are produced all over Indian

artmetalware / EPNS ware, wood carvings and other

wooden artwares, imitation jewellery, handprinted textiles,

shawls as artwares, embroidered goods, lace and lace

goods, toys, dolls, crafts made of leather, lacquerware,

marble crafts etc. Although it is difficult to limit a specific

place for the particular craft, the following places are listed for their particular crafts.

Moradabad(UP) : For Artmetalwares and imitation jewellery

Saharanpur

(UP)

: For Wooden handicrafts & Wrought iron

handicrafts

Jodhpur (Raj.) : For Wooden, Wrought Iron and Sea

Shell handicrafts

Narsapur (A.P.) : For Lace and Lace goods

Selected crafts pockets for achieving export

goal:

Although each crafts pockets has its particular problems, a

few selected craft pockets are identified based on their past

performance for immediate remedial attention to stimulate a

quantum in exports of handicrafts in the coming years.

EXPORT OF INDIAN HANDICRAFT

Indian Handicrafts and Gifts Industry : a rapid growingindustry with a turnover from US $ 1.2 million to US$ 1.9billion in the last decade.

A consistent annual growth rate of more than 15 per centover a 10-year period, from 3.6% to a respectable 10% sharein global handicraft exports.

In 2005-2006 the exports of Indian handicrafts has shownan increase of US$ 298.87 million, i.e. the exports increasesby 10.02% over the similar period during 2004-2005.

The industry is expected to triple its export turnover to Rs.39,000 crore by 2009-10

Create around 20 lakh new job opportunities.

Art Metalwares : U.S.A., Germany, U.K. & Italy

Wood Wares:

U.S.A., U.K., Germany & France

Hand Printed &Textiles & Scarves

:U.S.A., U.K. , Germany & Canada

Embroidered & Crochetted Goods

:U.S.A., Saudi Arabia, U.K., Germany

Shawls as Artwares

:Saudi Arabia, U.S.A. Japan & U.K

Zari & Zari goods:

U.K. U.S.A., Japan & Saudi Arabia

Imitation Jewellery:

U.S.A., U.K., Saudi Arabia & GermanyMiscellaneousHandicrafts

:U.S.A., Germany, U.K. & France

COUNTRY-WISE EXPORTS OF HANDICRAFTS

The major buyers for handicrafts (other than carpets) are as

under:

MAJOR IMPORTERS

MAJOR

PLAYERSCrafts Areas

Art Metal-ware

Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Rewari, Thanjavur, Madras, Mandap, Beedar, Kerala & Jagadhari, Jaiselmer

Wooden Crafts

Saharanpur, Nagina, Hoshiarpor, Srinagar, Amritsar, Jaipur, Jodhpur, Jagdalpur, Bangalore, Mysore, Chennapatna, Madras, Kerala & Behrampur (WB)

Embroidered goodsKutch (Gujarat), Jaisaimer, Baroda, Lucknow, Jodhpur, Agra, Amritsar, Kullu, Dharmshala / Chamba & Srinagar

Marble & Soft Stone Crafts Agra, Madras, Baster, Jodhpur

MAJOR

PLAYERS

Crafts Areas

TerracottaAgra, Madras, Baster, Jodhpur

Zari & Zari Goods Rajasthan, Madras, Baster

Hand printed Textiles & Scarves

Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru & Sanganer

Imitation JewelleryDelhi, Moradabad, Sambhal, Jaipur, Kohima (Tribal)

Artistic Leather Goods lndore, Kolhapur, Shanti Niketan (WB)

MAJOR OBJECTIVES Providing commercially useful information and assistance

to members in developing and increasing exports.

Offering professional advice and services to members inareas of technology upgradation, quality and designimprovement, standards and specifications, productdevelopment, innovation etc.

Organizing visits of delegation of its members abroad toexplore overseas market opportunities.

Organizing & Participating in specialized InternationalTrade Fairs of handicrafts & gifts.

To create an environment of awareness through Workshopson "Export Marketing, Procedures and Documentation",Packaging, Design Development, Buyer Seller Meet, OpenHouse etc. interaction with Central and State Govt. andvarious other similar programmes.

Rashmi Verma IBR 5006

S AW NO AT L

YSIS

Weaknesses:

• Lack of infrastructure and

communication facilities.

• Unawareness about international requirements and market.

• Lack of co-ordination between government bodies and private players.

• Inadequate information of new technology.

• Inadequate information of current market trends.

• Less interest of young people in craft industry. • Lack of skilled labor. • Still confined to rural areas and small cities and untapped market. • Lack of promotion of products.

Strengths:• Large, diversified and potential

market.

• There is large product variety and range is available because of diversified culture.

• It has strong, diversified and supportive retail infrastructure.

• Diversified product range that service different market.

• Cheap labor rates that result to competitive price.

• Need low capital investment.

• There is flexible production flexibility.

• Low barriers of new entry.

Threats :

• Competition in domestic market.

• Balance between high demand and supply.

• Quality products produced by competing countries like China, South

Africa.

• Better Trade terms offered by competing countries.

• Increased and better technological support and R&D facility in competing

countries

Opportunities:

• Rising demand for handicraft products in developed countries such as USA, Canada, Britain, France, Germany, Italy etc.

• Developing fashion industry requires handicrafts products.

• Development of sectors like Retail, Real Estate that offers great requirements of handicrafts products.

• Development of domestic and international tourism sector.

• e-Commerce and Internet are emerged as promissory distribution channels to market and sell the craft products.

FINDINGS

&

1. In small units only 14% units go for outsourcing.

2. Most of the marketing people, which are from their family itself only go and meet the existing customersnobody is searching for new buyers extensively.

3. Max. no. of units are making only traditional items, they are not making any new innovative items like- rotating dining table, decorative coffee grinders, CD racks etc.

4. Handicraft Industry of Jodhpur is one of the biggest industries of Jodhpur dealing in export With a yearly export of more than 1000 Cr.

5. This industry is not investing in machinery even after knowing that the main concept behind success in this industry is bulk supply and this is the point where other countries exceeds.

6. most of the exporters are not going for marketing and even if any firm is going then also they are sending only their relatives there instead of any

Bibliography websites.

Newspaper.

Reference books (culture and value of Indian terms).

Magazines.