eda india bds ma report-part 1.pdf - Value Chains

Preface & Acknowledgements

This market assessment of business development services (BDS) obtained by artisans in the leather sub-sector of the Jaipur region of India is the first component in the development of a demand driven and commercial BDS market for enterprises in the leather sub-sector. The information obtained and the understanding developed from this exercise would help design suitable interventions for the leather sub-sector to develop a commercial BDS market. EDA Rural Systems Pvt Ltd would like to convey its gratitude to the SEEP Network for the support provided to this project. The market assessment team also would like to thank Jimmy Harris, Manager, Practitioner Learning Programme (PLP), SEEP Network for his efforts in support of our work. PLP Facilitator, Aly Miehlbradt provided continuous support and invaluable inputs and comments to the entire market assessment exercise and to the draft report. Our thanks are due to her and to all the PLP participants who provided us insights and shared their views on various aspects of the BDS markets through the list-serve discussions. The assessment team would like to thank Sanjay Sinha, Executive Director, EDA for his continuous guidance and inputs to the project and for finalising the report. Above all, the team is grateful to all the leather artisans and BDS providers in the sub-sector who spent time with us, answering questions and sharing information and their views. We very much hope that the information and views reflected in this report will serve the purpose of developing a commercial and vibrant BDS market for the sub-sector. EDA Rural Systems Pvt Ltd 107 Qutab Plaza, DLF City-1 Gurgaon 122002 INDIA Market Assessment Team

Ashok Kumar, Team Leader, Enterprise Promotion and BDS Sanjay Bharati, Management Executive

Swetan Sagar, Senior Executive

March 2003

EDA Rural Systems Pvt Ltd 11 March 2003

1

Table of Contents

Page Sectio

n

Summary

One Introduction

1.1 Background 1.2 Goal 1.3 Overview of the BDS in the sub-sector 1.4 BDS market assessment: Demand assessment 1.5 BDS market assessment: Supply assessment 1.6 Assessment of demand for BDS 1.7 Limitations

1 1 2 4 7 9 9

Two Training and technical assistance

2.1 Introduction 2.2 Training in leather goods production 2.3 Training in producing jootis with new designs and patterns or different

types of footwear 2.4 Technical assistance in developing patterns for different types of jootis 2.5 Sources of supply for this service 2.6 interaction with BDS suppliers with artisans 2.7 Supply status 2.8 Extent of commercialisation 2.9 Conclusions

11 11

12

12 12 21 21 24 25

Three Market linkage and information

3.1 Introduction 3.2 Market linkages 3.3 Market information 3.4 Market channels and markets 3.5 Market linkage and related information 3.6 Sources of supply for the service 3.7 Interaction of BDS suppliers with artisans 3.8 Extent of commercialisation 3.9 Conclusion

26 26 27 27 30 35 36 36 37

Four Sources of input supply

4.1 Introduction 4.2 Information about sources of raw material and assistance in

developing links 4.3 Information about accessories used in production of mojaris 4.4 Information about accessories for leather goods and sources to procure

them 4.5 Existing sources of input supply

38

39 39

40 40 44

EDA Rural Systems Pvt Ltd March 2003 2

4.6 Sources of supply for inputs 4.7 Interaction of BDS suppliers for artisans 4.8 Supply status of service 4.9 Extent of commercialisation 4.10 Conclusion

47 48 48 49

Five Technical support for better designs and new products

5.1 Introduction 5.2 Different patterns and designs for jootis 5.3 Suitable polymer lasts to match different patterns of jootis 5.4 Machines 5.5 Sources of supply 5.6 Interaction of BDS suppliers with artisans 5.7 Status of supply of the service 5.8 Conclusion

50 50 51 52 52 59 59 62

Six Servicing of tools and equipment

6.1 Introduction 6.2 Servicing and repair of equipment 6.3 Sharpening edges of various tools 6.4 Sources of supply of the service 6.5 Interaction of BDS suppliers with artisans 6.6 Supply status of the service 6.7 Conclusions

64 64 65 65 68 68 69

Seven Assistance in complying with formalities

7.1 Introduction 7.2 Registration with DIC, DCH and other organisations that organise exhibitions/fairs 7.3 Assistance in obtaining loans from banks and financial institutions 7.4 Sources of supply of the service 7.5 Interaction of BDS suppliers with artisans 7.6 Supply status of the service 7.7 Conclusions

71

72 72 72 76 77 77

Eight Cross-sector services

8.1 Introduction 8.2 Findings 8.3 Future plans

78 78 79

Annexes


Glossary of Terms Babool: A medium-sized tree with thorns on its branches. Abundantly found in the villages of Rajasthan, it is also known as Acacia. Its bark is powdered and used for vegetable tanning of skins/hides. Chrome tanned leather: Leather obtained by the chrome tanning process in modern tanneries using chromium salts, primarily chromium sulphate. Chrome tanned leather is softer and has a better quality and finish. Mostly used for making the uppers of jooti. Country tanned leather: Vegetable tanned leather using vegetable materials derived from the bark of a tree (babool) and various other plants along with small portions of other agents to assist in the tanning process; modify the leather without changing the essential vegetable character of the leather. The leather is hard and the quality and finishing is inferior to that of chrome tanned leather. It is mainly used for making the soles of jootis. Country tanned leather is used for both soles and uppers in traditional jootis. Designs: of jootis refer to the different forms and shapes on the uppers of jootis. Stitches, embroidery, punches, weaving and strips of leather are used to provide designs. In mojaris small wooden beads and discs are also used for designs on the upper. Embedded services: Any services offered with core products by an enterprise or a supplier are called embedded. Usually these services are not the core products of these suppliers. For example, assistance or inputs on improving designs of jootis provided by a jooti retailer to an artisan is an embedded service whereas the retailer’ core products are jootis. Haats: Small village markets – organized mainly on a weekly basis and also in some villages where hides, tanned leather and leather items are traded. Jaipur-based wholesalers: They usually operate from Jaipur and collect jootis from production centres in villages. Jaipuri jootis: Traditional slip-on leather shoes with pointed toe and no heel. Jootis produced have small variations in designs and shapes and are often specific to a village. Last: A solid form of wood or plastic or metal in the shape of a foot. Jooti makers insert lasts in the jooti after stitching the upper and sole to provide proper shape to the jooti. Leather goods: The term refers to all items other than jootis. These items include leather bags, purses, key rings, diary covers and ladies bags. Mojari: These are improved versions of traditional jootis produced during the Operation Mojari programme launched by RUDA. The jootis are more appealing to urban buyers as they are of better quality and finishing, and available in various designs. Panchayat samiti: The lowest level administrative unit often consisting of a cluster of village settlements. Pattern: Indicates a complete sketch of the upper and the sole of jooti developed on a piece of cardboard or a thick plastic sheet. Leather to be used in the jootis is cut using the pattern. Based on the sizes and the types of jootis, patterns vary. Some of the patterns used in mojari production are SMD, Dolma, Pakeeza, Kowa and Myul. Polymer lasts: are mostly used in mojari production and are made of solid plastic. They are durable and do not deform with use unlike wooden lasts. Shapes of jootis made using these lasts are much better. Raigars: Traditional leather workers of Rajasthan. The community belongs to the lowest level of the Indian caste system and is involved in major activities in the leather sub-sector such as tanning and the production of leather items.


Rubber milk: A white liquid used as adhesive for pasting various parts of jootis. Sisam: An Indian rosewood tree (Dalbergia sisu). Its wood is used for making wooden lasts. Stand-alone service: Any services offered separately as core products by an enterprise or a supplier is called a stand-alone service. For example, a trainer who provides training services to artisans to enable them to make leather goods provides a stand-alone service for which either a fee is charged or a specific subsidy is obtained. Tehsil: A sub-division of a district and made up of upto 100 panchayat samitis Upper of jooti: It is the upper part of a jooti that is stitched onto the sole. Village retail shops: Such shops are generally of two types – exclusive retail shops for leather accessories or general stores in the village stocking accessories for jooti production. Village tanneries: Village tanneries are the major source for the supply of vegetable-tanned country leather to the Jaipur haat. Village wholesalers: operate from villages and deal in small volumes. They buy jootis directly from the producers and take these to the retailers/wholesalers in various towns. Wooden lasts: Made of solid wood and used by artisans in particular by traditional jooti producers. The most commonly used raw materials for making these lasts are babool, sisam and pras wood.


Chapter 1

Introduction 1.1 Background The purpose of this project is to develop a market for business development services (BDS) for small and micro-enterprises in the leather sub-sector in the State of Rajasthan in India. In this state there are a number of tourist attractions that draw visitors from all over the world. These tourists look for ethnic products from the state including leather products—traditional jootis and other leather items. These enterprises include units undertaking vegetable tanning of leather and production of traditional leather jootis (slip-on shoes) that mainly using locally tanned hides. There are a large number of villages mostly in the districts of Jaipur, Ajmer and Dausa where these enterprises exist and provide employment to a significant rural population. The leather artisans belong to a community called Raigar who are considered to be at the lowest level of the social caste structure. The entrepreneurs undertaking these activities are poor as well as underserved. Their average monthly income ranges from Rs1,500 to Rs2,500 (US$30–50)1. It is estimated that nearly 90% of the leather artisans in Jaipur and Dausa districts undertake the production and sale of traditional leather jootis. Vegetable or country tanning of leather, which was once a predominant activity in the sub-sector, is now limited to less than 10% of the artisans. The main reasons for this are low returns from this activity and leather supplied to chrome tanneries offer relatively better prices. Traditional jootis also known as Jaipuri jootis use country-tanned leather for the sole. The upper portion of the jooti uses either chrome- or vegetable-tanned leather. The market penetration of such jootis is mainly restricted to rural areas of Rajasthan. The rural market for jootis has been shrinking because of the competition from low-cost polyvinyl chloride (PVC) soled shoes and slippers. There are a limited number of BDS providers who provide services to enable artisans to add value to the production of leather goods in order to increase their income levels. Although some BDS (mostly training for skills development) are being provided to them through state-sponsored programmes, these do not seem to have been appropriately designed. In addition, in the absence of other essential services, entrepreneurs do not use their newly acquired skills effectively. A detailed map showing the linkages between the various stages of production and marketing in the sub-sector is presented as an Appendix to this report. 1.2 Goal The goal of this project is to develop a demand-driven and commercial BDS market for enterprises in the leather sub-sector by involving BDS providers from the private sector. The project focuses on enterprises undertaking the production of jootis as well as those producing (or interested in producing) leather goods. The latter is a very limited activity at present. 1 US$ is roughly equivalent to Rs50


The first component of the project is an assessment of the existing BDS markets that entail assessments of the demand and supply of BDS in this sub-sector. This report presents the findings of this BDS market assessment of the leather sub-sector of Rajasthan. 1.3 Overview of BDS in the sub-sector 1.3.1 Government-sponsored programme interventions In order to develop the leather sub-sector in India, UNDP in association with the Government of India initiated a programme called the National Leather Development Programme (NLDP) in a number of states including Rajasthan. In Rajasthan, this programme is called Operation Mojari and has been implemented by a state government organisation called the Rural Non Farm Development Agency (RUDA). To widen the market base for jootis, the programme has taken a number of initiatives including introduction of new patterns in jootis and mechanisation of the production process by introducing machines for leather stitching, buffing, punching and dyeing. Operation Mojari has been implemented in 5 districts including Jaipur where it reaches 13 villages. Artisan groups have been formed for the purpose of providing support under the programme. Although the overall impact of the programme across villages varies, it has been able to create an impact in the sub-sector by providing a new dimension to the production process, improving the quality of jootis and providing the producers exposure to a larger market. 1.3.2 Status of BDS provision to artisans making leather jootis A preliminary observation in the sub-sector indicates that some BDS such as skill development training, market links and design inputs are being provided to artisans under the Operation Mojari of NLDP and by some of the state agencies such as District Industries Centre (DIC), the Khadi and Village Industries Commission (KVIC) and RUDA which strive for the development of small and micro-enterprises in different sub-sectors in the country. These agencies seem to have a limited outreach in terms of the number of artisans receiving their BDS. Besides, artisans receiving these services are not able to utilise them efficiently and effectively in the absence of other essential services and follow-up support. For example, the skill development training programmes in shoe production organised by DIC do not seem to have produced adequate results because the artisans are not receiving other services including market support and information on sources of supply of raw materials and accessories. Presently, such services although available are largely subsidised and artisans are not accustomed to paying fees for most BDS. Jootis are losing their rural market share to rubber sole rexine shoes and plastic jootis which are gaining popularity among the rural youth. In order to expand the market for jootis, it is important for the artisans to be able to produce innovative designs, have proper market links and obtain adequate knowledge about the sources of raw material/accessories. The level of competition in jootis also opens the scope for diversifying into leather goods which has a larger market size. Under these circumstances, it is important to ensure the provision of BDS as required by artisans in order to enable them to respond adequately to market conditions.


1.3.3 Overall status of the Indian leather industry and future prospects There has been a quantum jump in the export of leather and leather goods from Rs28 crore in 1956-57 to Rs9,000 crore in 2000-01, reflecting a real increase (inflation-adjusted increase) of a factor of 14. In recent years, since 1990-91, leather exports have grown at a nominal rate of 13% per annum (translating to a real rate of growth of 4% per annum). Today, the industry ranks eighth in the exports of the country. The composition of the export of leather and leather products from India has undergone a structural change during the past three decades, from merely an exporter of raw materials in the 1960s to that of value-added products in the 1990s. Finished products now constitute 81% of the total exports of the industry, compared to a mere 7% in 1956-57. India is endowed with about 10% of the world’s raw materials and exports constitute about 2% of world trade. India exports leather products to countries such as the USA, Germany, the UK, Italy, Spain, Hong Kong, France, Canada, Russia, Australia amongst others.

• Leather footwear – casual shoes, sport shoes, safety boots, chappals and sandals • Footwear components – shoe uppers, soles, sandal uppers, insole and sock lining • Leather garments – jackets for men and women, overcoats, motorbike jackets,

garments for children and adults • Leather goods – wallets, purses, handbags, belts, key chains, passport folders,

spectacle cases, hand gloves, portfolios, suitcases, harness and saddle items. Although relevant data related to the demand for jootis is not available, there is a feeling among major stakeholders including exporters and sellers of jootis (mainly mojaris) that the domestic and export demands for mojaris is witnessing an increasing trend. Similarly, the demand for leather goods and leather garments is increasing in the domestic and export markets. Table 1.1 contains information on the export performance of major leather items.

Table 1.1

Export of Leather and Leather Products from India in 1999-2000 and 2000-01

(Value in million US$)

Category 1999-2000 2000-2001 % growth Finished leather 239.82 381.86 59.2% Leather footwear 377.39 384.47 1.9% Footwear components 215.09 238.06 10.7% Leather garments 347.28 460.55 32.6% Leather goods 376.52 443.83 17.9% Saddle and harness 34.11 42.72 25.2% Non-leather footwear 14.12 19.50 38.1%

Total 1,604.35 1,970.98 22.8% US$ rate 43.33 45.68 (Source: World Statistics - ITC, Geneva - based on Calendar year India 's Export - DGCIS, Calcutta.) The above table indicates that there is reasonable growth in the export for leather goods and leather garments.

Future prospects and key opportunities


• The world trade in leather products is growing with regard to increase in demand for products made of leather.

• Domestic demand is also expected to rise with growing GDP especially for products such as footwear, leather goods, etc.

• Developed countries depend on imports for meeting their requirements from developing countries such as India.

• The Indian leather sector is fully geared to meet high-end consumer markets by upgrading technology and machinery.

• The Government of India plays a proactive role to enhance the export of leather products considering the industry’s inherent strengths and prospects.

• Keeping in view the past performance and the current trend, Indian exports from the leather sub-sector are projected over the next five years to reach a level of US$3.6 billion by 2005-06, envisaging a 5% share of global trade.

It is in this context that EDA’s initiative in the leather sub-sector has been undertaken. The market assessment study was divided into two segments—demand assessment and supply assessment. Detailed information about the objectives and methodology used for the study is presented below. 1.4 BDS market assessment: Demand assessment The demand assessment of BDS was undertaken to • understand the relationship of jooti-making artisans with all stakeholders in the sub-sector

and explore the provision of any BDS in such relationships in various forms • estimate the demand levels for various BDS • understand the perception of artisans about the quality and availability of BDS • understand the scope for providing BDS on a commercial basis. 1.4.1 Study approach • Selection of villages from Jaipur and Dausa districts • Selection of artisans/respondents • Selection of assessment tools

Selection of villages A total of 12 villages were covered from Jaipur and Dausa districts of Rajasthan, namely

• Jaipur: Udaipuria, Savardha, Manpura Macheri, Chaksu, Ramjipurakalan, Kishengarh Rainwal, Kharkhara, Booj and Chavandiya

• Dausa: Gudeliya, Kundal, Pipalkheda

Jaipur Villages in Jaipur district were selected for the assessment based on

• the total number of jooti-making and/or leather goods producing units • representation of villages from major panchayat samitis (6 out of 9 samitis) • the level of impact created by developmental interventions/agencies in the sample villages

Preliminary discussions with artisans from villages in the leather cluster indicate that there are 28 villages in Jaipur with about 35 or more jooti-making units. The above criteria were used to select 9 of these villages as shown in Table 1.2. Other villages were not covered due to the small number of artisans/jooti-making units there.


Table 1.2

Villages selected in Jaipur district

Villages No. of artisans No. of jooti-making units

No. of leather goods producing

units* Udaipuria 400 150 4 Savardha 300 90 4 Manpura Macheri 400 100 nil Kharkhara 100 40 nil Booj 100 35 nil Chavandiya 150 50 nil Chaksu 300 125 nil Ramjipurakalan 300 100 nil Kishengarh Rainwal 200 125 nil

* The artisans do not produce leather goods regularly but occasionally.

Dausa

Three villages were selected from Dausa district. The jooti-making activity in Dausa district is restricted to 7–8 villages, considerably lower than the level of activity in Jaipur district. Table 1.3 presents information on the number of units in the villages selected in Dausa district.

Table 1.3

Villages selected in Dausa district

Name of village No. of artisans No. of jooti-making units

No. of leather goods producing units

Gudeliya 125 80 nil Kundal 150 50 nil Pipalkheda 40 25 nil

The approach for selecting villages for the assessment was based on

• a large number of production units in the villages. This will encourage potential BDS providers to offer services because of the scale of the business opportunity

• different panchayat samitis (clusters of villages). Researchers will be able to understand the variation in demand pattern of various services

• cost effectiveness in promoting BDS. Especially during the initial period when providing BDS to villages with more production units.

Selection of artisans/respondents

The selection of artisans/respondents was based on

• age: selection was from different age groups (18–50 years) • levels of assistance/support received from development organisations and programmes, so far: artisans

who have received various services from different organisations and those who have not • types of enterprise: involved in the production of jootis and/or leather goods production • scales of operation/activity.


Based on these parameters, a random sampling approach was adopted to select artisans from different villages. About 14–15% of the total number of units was covered per village and a total of 134 respondents/artisans were interviewed for the study. This approach was adopted for the following reasons

• During the testing phase of the BDS demand assessment, it was found that young entrepreneurs were able to give better responses as compared to their older counterparts; although responses from older artisans gave a broad overview of the sub-sector.

• Artisans more exposed to development organisations and their interventions were able to relate better to the study questions.

• Artisans with different scales of operation were able to identify different BDS requirements thereby providing a broader outlook of the BDS required.

Use of study tools

The tools used for the study were In-depth interviews with the help of a checklist of questions (Annex 1). Artisans from different villages in Jaipur and Dausa districts of Rajasthan were individually interviewed. The checklist was developed in order to obtain qualitative as well as quantitative information on the various aspects of BDS. The interviews focussed primarily on

• existing business practices for procuring materials and various services required by artisans

• delineating all transaction and business-related relationships of artisans with all stakeholders in the sub-sector

• levels of exposure of artisans to state-sponsored programmes and other BDS providers • issues related to BDS supply • understanding the usage pattern of BDS wherever required • the importance attached by artisans to various kinds of BDS and their willingness to

pay a fee for these services • expected benefits from BDS and desired features • level of demand for different BDS.

Focus group discussions A group discussion with 7–10 artisans involved in the production of jootis was organised in all the villages covered in the study. Separate group discussions with artisans involved in leather goods production were organised. The group discussions were conducted with the help of a checklist of questions (Annex 2). The purpose of the focus group discussions was to

• collect qualitative information on the supply status of BDS • understand the shift in the designs of jootis, the use of raw materials and factors

facilitating the shift • seek artisans’ opinions on the factors hampering their business growth


• understand artisans’ expectations on features that BDS should cover • determine their willingness to pay for BDS

Observation of business transactions In addition, an attempt was made to understand the exchange of information between artisans and service providers/raw material suppliers by observing actual business transactions. For this purpose, 5 visits to the Jaipur haat (a small market place where jootis as well as raw materials and accessories are traded) were made. During the visit, the exchange of information was closely observed between wholesalers of jootis and artisans, and between traders of raw material and artisans. These observations provided a good insight into the dynamics of the relationship that existed between stakeholders. 1.5 BDS market assessment: Supply assessment The study of the supply assessment of BDS was undertaken to understand • the various sources of supply of services • the operational aspects of providing BDS • suppliers’ viewpoint on services • the outreach of BDS 1.5.1 Study approach

• Selection of suppliers of BDS • Selection of appropriate tools

Selection of suppliers of various BDS A total of 50 BDS suppliers were interviewed for the study.

The sample of suppliers for the supply assessment study were based on

• services provided • type of suppliers: institutions (government organisations) and NGOs providing subsidised services,

private commercial suppliers providing services in embedded form and suppliers mainly from the private sector providing services in stand-alone form

• operational base: village, tehsils (small towns near village) in Jaipur and Dausa The demand assessment study revealed that artisans obtained BDS mainly from three categories of suppliers—institutions (government agencies/NGOs) providing subsidised services, private commercial suppliers offering services both in embedded form and stand-alone form. In order to get a comprehensive view of BDS suppliers, the study sample included different categories of suppliers.

Sampling strategy The sampling strategy adopted was based on • the number of institutions (government and non-government) involved with leather artisans. It was

found to be small and therefore all of them were covered in the study. • if the number of providers of services was large and located in the same place (village, tehsils in Jaipur

and Dausa) a random sampling strategy was adopted to select them


• the scale of business. Suppliers providing similar services in embedded form with the core products (for example a retailer of jootis providing inputs on design along with his core product, jootis).

• emerging commercial service providers who were included based on information from the demand assessment study.

Table 1.4 presents information on the number of suppliers selected for the supply assessment study.

Table 1.4

Suppliers selected

BDS Total number of suppliers Institutions Private commercial

suppliers Total

Training and technical assistance 3 4 7 Market links and information 3 23 26 Sources of input supply nil 17 17 Technology for better designs and new products 1 23 24 Servicing of tools and equipment nil 5 5 Assistance in compliance with norms/formalities 5 1 6

Note: There are suppliers who provide more than one service. For example RUDA provides a number of BDS to artisans.

Selection of tool

In-depth interviews In-depth interviews with the help of a checklist of questions (Annex 3, 4 and 5) were undertaken with suppliers of services. Three checklists of questions were developed for three different kinds of suppliers – institutions, private commercial suppliers providing services for a fee for stand-alone services, and suppliers of embedded services 1.6 Assessment of the demand for BDS The demand for BDS was assessed based on responses from artisans. BDS was considered to be in demand by artisans when the response was

• “I would like to obtain the service.” • “Without this service, I would face difficulties in business and the level of income

would be low. Therefore, I would like to have this service.” • “If this service is made available to me, I can certainly improve my business and

income levels.” • “This is the service I have been using and know of its importance; I will continue to

obtain this service.” BDS was considered not in demand by artisans, when the response was

• “At this stage, I am not sure about the utility of the service.” • “I need to think more about obtaining this service.” • “I do not want to obtain this service.”


Apart from the above responses, they also indicated, in most cases, their willingness to pay for services provided the services were useful and gave the required results. However, they were unable to say how much they would be willing to pay mainly because they had never used such services by paying a fee. These services are mostly offered either in a subsidised form or an embedded form. However some services such as repair and maintenance of tools and equipment are available in a stand-alone form, but artisans have to pay for these services. The levels of demand estimated for various services reflect the total demand including those that are already being met to some extent in the sub-sector. 1.7 Limitations • In the weak BDS market in the sub-sector, obtaining substantive information on various

aspects such as the scope for commercialisation, the willingness of artisans to pay for individual services and a comparison of the quality of services was difficult.

• The study findings were based only on the responses from artisans involved in the production of jootis and not from the very small number of artisans presently involved in the production of leather goods.

• Respondents were sometimes unable to comprehend the questions. • As the findings were based on qualitative information, the judgement of researchers may

be subjective. However, this was reduced to the extent possible by cross checking the responses.

• Due to lack of experience some artisans could not relate to the possibility of a useful BDS being offered/supplied to them like any other service for a fee. The researchers had to make additional efforts to explain the possibility and obtain a relevant response from them.

• As the orientation of the institutional suppliers was different—government agencies on several occasions lacked an understanding of the commercial approach to BDS. So it was often difficult to get their responses on BDS in relation to the scope for the commercialisation of services.

• There were one or two representatives from each of the institutional suppliers covered. It may be possible that the views expressed by them were their personal views and not those of the organisation.

• Some of the private commercial suppliers were reluctant to discuss the situation openly for fear of revealing commercial information to an external agency.


Chapter 2

Training and technical assistance

2.1 Introduction The BDS demand assessment study indicates that 66% of the respondents would like to obtain various kinds of training and technical assistance for • Training in leather goods production • Training in producing jootis with new designs and patterns or different types of footwear • Technical assistance in developing patterns for different types of jootis Figure 2.1 shows the demand levels of these individual services.

Figure 2.1

Demand levels for training and technical assistance

% of respondents

80

45

0102030405060708090

Training in leathergoods

Training in producingnew designed

jootis/footwears

Tein

l

l

l

Out of 66% of the total respondents who would like to obtaintechnical assistance; 80% would like to obtain service relatedgoods production, 45% would like to obtain training in new donly 8% would like service related to the technical assistance jootis. Thus it is apparent that the demand for the services relis very high whereas the services related to technical assistancjootis have a lower demand. The details are discussed in this 2.2 Training in leather goods production This study suggests that there is a high demand for this servicseems to be a major priority among artisans whose livelihoodtraditional jootis. However, artisans from the older generation

EDA Rural Systems Pvt Ltd 15

5% overal

53% overal

30% overal

8

chnical assistancedeveloping patterns

for jootis

services related to training and to the training in the leather esigned jootis and footwear and in developing patterns for ated to training in leather goods e in developing patterns for section.

e in the sub-sector. This service is solely dependent on making (above 60 years of age) are

March 2003

not keen to acquire skills for a new set of products. They feel it is difficult for them to acquire new skills at this stage of life. Expected benefits • Artisans mainly producing mojaris who want an additional source of income. They can

undertake the production of leather goods in case there is a slack in the market for mojaris in the future.

• Artisans who are involved in the production of traditional jootis perceive it as an alternate livelihood which could provide them with a better source of income as compared to the earnings from traditional jooti making.

2.3 Training in producing jootis with new designs and patterns or different types of

footwear The major demand for this service is from artisans who have not been affected by the benefits of the Operation Mojari programme. These artisans feel that mojaris have a relatively better market potential than traditional jootis. They also feel that familiarity with the production of traditional jootis will easily help them acquire the skills needed to produce mojaris. Expected benefits • Able to compete in the existing rural market • Attract more rural customers particularly the youth with the help of new designs • Access to a more profitable market beyond rural Rajasthan 2.4 Technical assistance in developing patterns for different types of jootis This service is in demand by those artisans who produce mainly mojaris and have links with exporters, and Jaipur-based wholesalers and retailers. In order to process their orders, these artisans first develop the patterns of jootis. As these exporters/retailers/ wholesalers have strict specifications for their samples, the artisans have to experiment continuously to develop a particular pattern. Such experimentation requires time as well as material. The non-availability of a sufficient variety of lasts with the artisans further aggravates the problem. Sometimes artisans adjust the lasts available with them to suit the needs of the patterns to be developed. The demand for this service is based on the artisan’s confidence in his ability to convert this design capability into value addition in the market. Most artisans are “market takers” rather than “market makers”. Expected benefits • Ability to produce patterns so that the orders of exporters/retail showrooms/wholesalers

can be easily processed. • Saving of time and material needed in the development of patterns. 2.5 Sources of supply of this service


1

In the leather sub-sector, services related to training and technical assistance are available through Institutional suppliers • Rural Non Farm Development Agency (RUDA) • District Industries Centre (DIC) • Khadi and Village Industry Commission (KVIC) Suppliers providing services in the embedded form • On-the-job training by artisans • Exporters • Fellow artisans Supplier providing training for a fee • Artisan-cum-trainer 2.5.1 RUDA RUDA is one of the leading government agencies involved with leather artisans that provides training in • the production of leather goods • the production of jootis with new designs and patterns of the uppers of mojaris

2.5.1.1 Training in the production of leather goods RUDA has organised or sponsored about 15–20 training programmes so far in the production of leather goods in Rajasthan.

Delivery mechanism For organising training in the production of leather goods, RUDA engages local NGOs or other organisations that have strong community links. These include Mata Sri Gomati Devi Foundation (MGDF) and EDA Rural Systems Pvt Ltd. (EDA) that have organised training in leather goods funded by RUDA. The training is organised in the artisans’ villages for a duration of 2–2.5 months (usually 4–5 hours a day). The selection of trainees is the responsibility of the training organisation. In most cases, the trainees are selected in meetings with artisans of the village where the training is to be imparted. Willingness to learn skills and then to use those skills for production is the main criterion . The progress of the training is monitored by the NGO and RUDA by paying regular visits to the venue and interacting with the trainees and trainers.

Features

• Training is conducted with the help of a trainer who has experience in the production of leather goods.

Usually the master craftsperson acts as a trainer. • Skills are imparted in making tumblers, purses, ladies bags, wallets, and key cases of different sizes. Cutting

patterns of various leather goods are also taught. Knowledge of different kinds of leather hides and accessories to be used in producing the goods is also imparted.

• Artisans are usually paid a stipend at the end of the training and/or provided some tools.


2.5.1.2 Training in producing jootis with new designs and patterns

Under the Operation Mojari programme, RUDA extended support to artisans in 13 villages in Jaipur district to upgrade their skills in producing mojaris.

Delivery mechanism In the initial phase of Operation Mojari, artisans were formed into village level groups in different parts of Jaipur district. Patterns of mojaris along with polymer lasts were provided to them, but leather for the sole and cotton thread for stitching uppers and soles of jootis were not provided. RUDA paid artisans Rs120 for each pair of mojaris produced.

Features

• Artisans were given a first-hand experience of making mojaris and also explained the use of polymer lasts

for standard sizing and left–right foot distinction. • Trainers in the Operation Mojari programme closely monitored the training by making frequent visits to the

individual trainees and providing appropriate advice. In-house capacity of RUDA for training in leather goods and new patterns In-house capacity

Links

Strengths • Appears to have an adequate administrative set up

and professional expertise to co-ordinate training programmes in leather goods as well as making jootis with new designs and patterns

• New patterns and designs along with suitable polymer lasts are provided to artisans supplying mojaris

• A systematic approach, in a few cases, in conducting training in leather goods (Rajgrah in Alwar district of Rajasthan). Assistance was taken from professionals to design a suitable training programme after assessing the existing skills of participants.

• Besides training in basic skills—cutting patterns and stitching leather—participants trained on new designs developed by professional designers based on the latest trends in designs of leather goods

Weaknesses • Inadequate follow-up related to market exposure

and links after training programmes but attempted to ensure market linkages to some of the artisan groups.

• Master craftsperson as trainer (artisan community or other community); preference for those artisans to be master craftspersons who have undergone some of RUDA’s previous training programmes

• Professional designers’ (in some cases) assistance, mainly for leather goods, in providing design input during the training programme

• Local NGOs funded by RUDA to arrange training logistics


Perception of RUDA According to RUDA, there is a demand for training and technical assistance of artisans in leather goods and better designed jootis. However, artisans hesitate to take this training because of a lack of understanding market dynamics. RUDA also feels that there is the possibility of commercialising these services provided artisans are convinced of their utility. Artisans have a marked preference for a stipend because of the a tradition of such a provision for many years. Besides, the stipend compensates them for the loss of income to some extent during the training period. These services should be made commercial and artisans should be motivated to make a contribution. 2.5.2 DIC DICs are government bodies that work for the promotion of small and micro-enterprise industries in most of the districts of the country. DIC Jaipur provides training to two kinds of leather artisans among training programmes in other sub-sectors • Training in leather goods • Training in the production of shoes Delivery mechanism DIC organises training in villages where a substantial number of leather artisans reside. For this training, DIC officials call a meeting of artisans with the help of panchayat officials and select artisans for training. The training is imparted in the villages for 2 months in a batch size of 25–40.

Features

• Training conducted with the help of a footwear technologist • Artisans paid a monthly stipend of Rs300 and tools worth Rs800-1,200 at the end of training In-house capacity

Links

Weaknesses • Outreach in villages through a network

of panchayat level offices. The network of DIC offices does not seem to be optimally used to develop an understanding of the training demands of artisans and designing appropriate training programmes.

• Training is treated as an isolated intervention and does not seem to focus on providing market links after the training. As the DIC very often lacks interface with markets, relevant training programmes based on the prevailing market conditions do not seem to be organised.

• A master craftsperson is paid a stipend of

• Footwear technologists • Master craftspersons train artisans in

leather goods (leather toys). Master craftspersons to train artisans in leather toys are often invited from Indore, which is a well-known centre for producing leather toys.


Rs1,500 per month. This is a lowfigure and might affect the quality of training.

Perception of DIC Every year DIC organises training in some of the villages and finds that a significant number of artisans are willing to attend. Thus, there exists a demand for this service among artisans. The DIC feels that a stipend given to trainees acts as an incentive to them. As most artisans are poor, it feels they may be unable to pay a training fee. 2.5.3 KVIC KVIC is a government body working for the promotion of village industries. It provides training to leather artisans in the production of leather shoes/slippers. Delivery mechanism For the training, KVIC selects artisans from a particular village and imparts training in the village in a batch of 15–20. The training continues for 2–2.5 months. Feature • Stipend paid to artisans at the end of the training

KVIC organised a few training programmes for the production of shoes in Dausa district a few years ago. Presently, training in the leather sector is not a priority. KVIC could not comment on any aspects of the service.

2.5.4 On-the-job training by artisans

Delivery mechanism

A few artisans provide on-the-job training (mojaris as well as traditional jootis) by employing other artisans. Initially, these artisans are given small tasks such as polishing, peeling and cutting leather. As they acquire skills they slowly graduate to stitching soles and uppers together as well as in preparing the uppers of jootis. They work in a shed provided by their employer, which helps control the quality of the products. When the expertise of the trainees reaches a satisfactory level, the employer allows them to take job work even to their respective homes with mutual consent.

Features

• Artisans are paid on the basis of job work which is fixed depending on the prevailing rates in the village • Knowledge of markets, sources of accessories and leather is also imparted In-house capacity Links

Strengths • RUDA


• Substantial knowledge of production process due to involvement with it

• Better opportunity to learn various activities because of the large scale of operation

• Acquiring high levels of skill in an informal setting

• Other artisans

Perceptions of artisans Artisans providing on-the-job training in making traditional jootis feel that the demand for this service is not much because younger artisans are not very inclined to producing jootis and work only because of the lack of options. By contrast, artisans involved in the production of mojaris feel that such training has a good demand potential. A large number of artisans have acquired the skills to produce mojaris through this method. Fellow artisans consider it a social taboo to charge for such services from their relatives/friends. 2.5.5 Exporters Delivery mechanism Exporters collect information about skilled artisans either through RUDA or contact directly at the Jaipur haat. Representatives of exporters visit the Jaipur haat and select suitable artisans by observing their quality of work and interacting with them. If artisans agree to work with the exporter, they are then trained by the exporter to meet the specification of orders. Exporters provide training to artisans in the production of jootis but in a very limited way as they train artisans to suit the specific orders they process. The duration of the training is limited and just enough to initiate the artisan into the production process.

Features

• Training in cutting sole patterns for the upper, adjusting lasts with jootis, finishing and stitching the soles

with the uppers, only if required • Duration of training is 5–7 days • Artisans are given job work at the end of the period • Uppers and lasts provided by exporter • No service fee charged from artisans In-house capacity Links

Strengths • Have the required in-house capacity

to provide training • Only skilled artisans are selected to

guide them to undertake their job work in a better way

Weakness

• RUDA provides information about skilled artisans in different villages

• Designers provide design inputs


• Skills imparted are not comprehensive and often restricted to exporters’ requirements

• Problem identifying skilled artisans Perceptions of exporters Exporters feel that artisans have the basic skills for making jootis/mojaris but they do not put much emphasis on the quality of the end product. In order to tap the export market, it is essential to improve quality. Artisans feel that by receiving services related to improvements in the quality of their products, they will be able to penetrate beyond the markets of Rajasthan. Exporters also feel that there is the possibility of offering training on aspects of quality in a stand-alone form. However, artisans would be willing to pay for such services only if they are assured of regular export orders. The exporters also indicated that since most of the orders are time bound, delays in shipment or sub-standard products lead to substantial losses/rejection. Delays occur mainly due to the additional time spent on training artisans to maintain quality and due to the low mechanisation of production processes. Exporters are open to the idea of hiring artisans who are well trained at a relatively higher price.

2.5.6 Fellow artisans Delivery mechanism Artisans seek the support of fellow artisans in acquiring the required skills needed to produce mojaris. They approach their relatives/friends making mojaris and learn the process of mojari production mainly through informal discussions. If required, artisans also work under the guidance of their mojari producing relatives/friends for a few days. After acquiring the desired level of skills, these artisans undertake mojari production on a trial basis in their respective villages. In case they face any problems, they re-establish contact to obtain further assistance from fellow artisans. Features • In order to initiate the production of mojaris, artisans also get patterns and polymer lasts

from their relatives/friends • This relationship helps them in acquiring knowledge about markets, accessories and other

technical aspects related to production • No fee (usually) is charged either for acquiring skills or for providing patterns and lasts During the demand assessment study, the practice of imparting training by fellow artisans on the basis of a relationship was found in all the villages. It seems that a substantial number of artisans acquire skills in producing mojaris in this way. An illustration of the process is provided in Box 2.1.


Box 2.1: Training by fellow artisans in the production of jootis with new patterns

Chavandia village in Jaipur has about 150 leather artisans and 50 units involved in the production of jootis. Three years ago, artisans in this village were making traditional jootis with designs made out of strips of leather joined together in the form of a heart stitched on the uppers. Two artisans of the village came across jootis in the Jaipur haat made by artisans of Kesupura village with different patterns of the upper. The pattern of the upper of these jootis resembled a mat in which strips of two different colours of leather were woven together. Impressed by this design, the two artisans of Chavandia village approached the artisans of Kesupura village at the Jaipur haat to learn the skills. They were given a short discourse on producing such jootis at the haat. The artisans bought one pair of that type of jooti and attempted to make it on their own using the sample piece. They achieved partial success in the first attempt. On the next visit to the Jaipur haat, they met the artisans of Kesupura village again and sought their feedback on the jootis prepared by them. In this way, they acquired the required skills for making jootis with this design. Gradually, they started producing such jootis in their own village. Slowly, other artisans from Chavandia village started approaching the first two to learn their skills. The skill was disseminated through informal discussions. The extent of dissemination can be gauged from the fact that now nearly 60% of the artisans have shifted production from traditional jootis to this kind of jooti.

2.5.7 Artisan-cum-trainer Artisans from the community often act as trainers to provide training in leather goods on behalf of organisations such as RUDA . These organisations pay the artisans to work as trainers in a particular training programme organised by them. There are 3–4 such trainers mainly from Udaipuria village of Jaipur district. None of them have explored the possibility of training artisans on their own. Due to their perceived inability to develop a market for training, they continue with jootis/leather goods production and work as trainers only when hired by institutions. One case of a skilled artisan with plans to become an independent trainer is presented in Box 2.2.

Box 2.2: Artisan-cum-trainer

Prakash, a highly skilled artisan from Udaipuria village in Jaipur district, has been engaged as a trainer for a number of RUDA’s programmes. As RUDA requires groups of 15–20 artisans, to organise a programme, he finds it difficult to mobilise and motivate sufficient numbers in a viable manner to take the training and, thereby, to enable him to earn a better income as a trainer. For this reason, Prakash is working towards becoming an independent trainer in the future. After training in the leather goods production programme organised by EDA in the village of Udaipuria, he acted as a trainer for a women’s group in Rajgarh on behalf of RUDA. His six-month tenure as a trainer gave him the opportunity to interact with an


expert designer to enhance his skills as an independent trainer. Plans Prakash plans to submit proposals to various agencies involved with leather artisans to obtain funds to work as an independent trainer. His first assignment as an independent trainer will be to impart training to a group of 20 artisans in the village of Alooda in Dausa district. MGDF is helping him to obtain funds under the government’s District Poverty Initiatives Programme (DPIP). Presently, he is also exploring the possibility of imparting training in Gudeliya village (Dausa) with support from EDA by charging a fee. Internal capacity and constraints Prakash feels that market links should be an integral component of such training programmes because artisans judge the efficacy of the programme based on positive responses from the market. Presently, he wants to remain associated with organisations such as RUDA because of his inability to provide market links to artisans trained by him. Prakash feels constrained because of the lack of rapport and interaction amongst artisans from different villages.

In-house capacity Links

Strengths

• Exposure to latest designs and market trends • Adequate skills in imparting training in

leather goods production Weaknesses

• Excessive dependence of the average artisan on institutional suppliers to provide training

• Lack of financial resources and adequate skills to undertake promotional activities and become established as independent trainers

• Inability to mobilise artisans and motivate them to pay fees.

Association with RUDA, NGOs and also with a few designers in some cases

Perceptions of artisan-cum-trainers As trainers, they feel that there is a substantial demand for the service in the leather sub-sector. They also feel that artisans would be willing to pay for the service if market links after training were provided. Market links should be an integral component of the service. 2.6 Interactions of BDS suppliers with artisans Information on the number of artisans a supplier interacts with for the service and the duration of interaction and contents/nature is given below.


Supplier Number Duration of interaction Contents/nature of interaction

RUDA 20–25 artisans per training and around 2–3 programmes per year

Extensive training for 2 months

Staff of RUDA, an NGO partner and a master trainer provide training Some artisans are provided assistance in participating in exhibitions after the training programme

DIC Same as above Usually, the training duration is around 15 days

Master craftsperson and a footwear technologist (Not as effective as RUDA)

Exporter 15–20 artisans at the time of a job order

7 days to a month depending on the type of products

Training on quality parameters and finishing provided by in-house trainers

Fellow artisan 4–6 artisans (on the job) 1–2 artisans (informal)

Minimum of 1 year for on- the-job training and 1–7 days (2–3 hour/day) for informal training depending on convenience

Basic skills

2.7 Supply status Availability Outreach Table 2.1 describes the overall outreach of the various training programmes in the sub-sector organised by institutional suppliers.


Table 2.1

Outreach of services related to training and technical assistance (all suppliers taken together)

Service Geographical outreach Numerical outreach

Training in leather goods production mainly by RUDA and DIC

• Out of 12 sample villages training in leather goods has been organised by RUDA only in 2 villages

• The study indicates that only 7% of the respondents have attended training in leather goods production.

Training in producing designed jootis and footwear mainly by RUDA, DIC and KVIC

• Out of 12 sample villages, 6 have had access to this service

• Only 6–7% of respondents have attended training in shoe making.

• Only 11% of respondents have undergone training in mojari production under the Operation Mojari program.

Training in developing patterns of jootis

• The demand for this service is very limited and it is not available to artisans in any form.

• Negligible

Quality The quality of the services offered mainly by institutional suppliers has been found to be inadequate by respondents. Table 2.2 provides details about the quality of services being provided by different suppliers.

Table 2.2

Quality of the training

Suppliers Comments on delivery Impact of the training

RUDA • Respondents who attended the training sponsored by RUDA do not find any problems.

• Proper identification of participants by NGOs who monitor the programme

• Artisans have shifted to mojari production in a number of villages but several did not because of inadequate market links

• Due to a lack of adequate marketing support, the artisans who received training in leather goods production will not take up regular production


Suppliers Comments on delivery Impact of the training

DIC • Emphasis on quality is less as the number of training programmes is more important, hence does not address artisans’ requirements

• Inadequate methods of selecting trainees – without assessing the genuine willingness of trainees

• Lack of effective monitoring of the training programme

• No follow-up services such as market links

• Training provided in four villages but none of the artisans took up subsequent production

• Low levels of skills acquired by a majority of the artisans

KVIC • Trainers not very suitable • The training is not monitored

properly and does not happen for the entire stipulated duration

• Artisans do not seem to have undertaken shoe production in any of the villages where training was organised

• Lack of adequate marketing support from KVIC

• Low level of skill acquired by artisans

On-the-job training

• Adequate delivery of the service • Adequate level of skills acquired but low outreach due to limited spread of mojari production

Exporters • Adequate delivery of the service • High level of skill acquired but limited

opportunities Demand Table 2.3 indicates the likely features and delivery mechanism.


Table 2.3

Features and delivery of the service

Service Features of the service Delivery mechanism

Training in production of leather goods

• Basic skills of cutting and stitching leather, making various utility products such as bags, wallets and applying designs through punching, dyeing and embroidery

• Knowledge of leather and accessories along with its source for procurement

• Knowledge of potential markets • Administration by an experienced

trainer

• Group size: 15–20 • Venue: Village • Duration: 3–4 hours per day for

2 months • Enrolment: Only interested

artisans. Every artisan should be made aware of the programme

• Monitoring: Regular monitoring by the supplier institution to ensure proper delivery – if the training is being provided by by hiring a craftsperson or external trainer(s).

• Market linkage after training Training in producing new-designed jootis

• Training in cutting the uppers and the sole of jootis with the help of patterns, stitching the sole and the upper of jootis, use of polymer lasts and creating designs on the upper of jootis

• Knowledge of accessories used in the new-design jootis

• Knowledge about markets • Administration by qualified artisans

with knowledge of various designs

• Group: 15–20 • Venue: Village • Duration: 3–4 hours for 7–10

days • Regular monitoring • Market linkage after training

Technical assistance in developing a pattern of the jooti

• Training in making patterns from the samples of jootis

• Service on an individual basis by experts

2.8 Extent of commercialisation Table 2.4 presents the extent of commercialisation of this service.


Table 2.4

Extent of commercialisation

Source of supply Extent of commercialisation

RUDA, DIC, KVIC Cost of service borne by the institutions Artisans paid a stipend and tools, in some cases, after the training programme

On-the-job training Commercial: no public money involved Exporters Commercial: exporters meet the training cost Fellow artisans Services are provided based on informal relationship

and without any obvious transactions; unsubsidised 2.9 Conclusions 2.9.1 Market issues • The majority of the training programmes seem to have been poorly organised with varying

degrees of impact. Hence, artisans most often become suspicious of the utility and impact of such training.

• There is a lack of further follow up for market links and this limits commercial production after training.

• Most of the institutional suppliers provide a stipend of about Rs300–500 per month in order to motivate artisans to enrol for the training programme. Many artisans want this practice to continue as they do not otherwise earn incomes during the training.

2.9.2 Market opportunities and learning • Nearly 50% of respondents have expressed an interest in being trained and are even

willing to pay Rs300–500 for the training services. • The institutional suppliers, such as DIC and KVIC, of the service do not seem to have

given a priority to market linkages after the training. Therefore, it is important to package the service properly to meet the expectations of the service users.

• There is a scope for commercialising the training services in the future by adding appropriate features to the service and by adopting proper delivery mechanisms.

• The service could have the following features: Facilitating participation in exhibitions/fairs in and outside Jaipur Assistance in complying with norms for attending exhibitions Market exposure Knowledge of the sources of supply and links for procuring accessories and tanned

leather Support in establishing market linkages.


Chapter 3

Market linkage and information

3.1 Introduction The BDS assessment study indicates that about 77% of the respondents would like to obtain market-related services through • development of linkages with markets and buyers of final products • market-related information. Figure 3.1 shows the demand levels of these services .

Figure 3.1

Demand for market linkages and market information

% of respondents

0

10

20

30

40

50

60

70

80

M

l

Out of the 77% of the total relinkages and information; 69%like market-related informatiopotential. 3.2 Market linkage About 69% of the respondentchannels. There is a commondirect links with retail showrosupplying to retail showroomwill assure them better sales. and new-designed jootis perc

EDA Rural Systems Pvt Ltd

53% overal

69

arket linkage M

l

spondents who would like to would like to obtain mark

n. Thus both types of servic

s would like to have market feeling among artisans suppoms in Jaipur will fetch the

s in Jaipur feel that the linkaArtisans willing to take up teive market links as an integ

15

41% overal

53

arket information

obtain services related to market et linkage services and 53% would es appear to have good demand

links beyond their existing market lying to village wholesalers that m better margins; while artisans ge with Delhi-based wholesalers raining in leather goods production ral component of the training.

March 2003

Expected benefits from the service • Artisans would have greater opportunities for value-added production and would thus

expect to earn higher incomes 3.3 Market information About 40% of the respondents would like to obtain market information on exhibitions and trade fairs. Nearly 20% of the respondents would like to obtain only information about wholesalers, retail showrooms in big and metro cities so that they can develop market links with them. These artisans mainly involved in making mojaris feel capable of developing links if they are provided with the required information. Artisans producing traditional jootis would also like to have this service but they are often not sure about the saleability of their products in these markets. Expected benefit • Attending exhibitions will enable them to sell their products more easily and provide

them with an understanding of new markets, designs, customers’ preference and wholesalers of the product from different places.

The following section discusses market channels and markets where artisans sell their products before discussing the availability and quality of market linkage services. 3.4 Market channels and markets 3.4.1 The Jaipur haat This is one of the main market channels for a majority of jooti producers. The Jaipur haat is held every Saturday in Jaipur city although activities start from late Friday night onwards when artisans start occupying their space. Trading activities take place during midnight and the early hours of the morning. The haat is not limited to jooti producers/wholesalers only from Jaipur district. They come all the way from Dausa, Alwar and Ajmer districts. Similarly, traders come not only from within the city but also from Bharatpur, Alwar and even Delhi. However, the majority of buyers of jootis are wholesalers from Jaipur city. Mostly, traditional jootis are traded in the haat. Shoes and slippers with PVC soles are also traded in the haat but in relatively small quantities as compared to jootis. The overall volume of trade in the haat is not readily available. Discussion during the assessment suggests that each big wholesaler buys about 200–250 jootis from the weekly haat. The purchase price of jootis varies depending upon the buyers, bargaining power and types of jootis and also the volume of purchase. On average the price per traditional jooti is around Rs80 with Rs10–15 more or less depending on the supply and demand situation on a particular day, and peak and lean seasons. 3.4.2 Jaipur-based wholesalers There are some 15 wholesalers of jootis based in Jaipur.These wholesalers procure jootis • from artisans in the Jaipur haat • from artisans directly supplying to their shops in Jaipur


1

• by placing orders with artisans in villages • from wholesalers from other districts of Rajasthan Out of these, the first two methods are the most common. 3.4.3 Jaipur-based retailers There are 50–60 exclusive retail shops for jootis (traditional and mojaris) in Jaipur. These shops are located in Ghatgate, Ramgunj, Bapu Bazar, Badi Chaupad and Station Road areas of Jaipur These retail shops procure jootis in two ways either • directly from artisans; or • from Jaipur-based wholesalers About 70% of jootis are procured by the first method. There are two types of artisans who supply to these retail shops. • Artisans who supply regularly based on retailers’ orders • Artisans occasionally visiting retail shops to sell their jootis As the design of the jootis varies slightly across villages and are specific to a village, retailers associate the designs with jooti producers from different villages. One or two producers of jootis from different villages supply regularly to these retail shops. This supply is based on an order placed by retailers in terms of the number of jootis, sizes and designs. Usually an artisan supplies about 20–30 jootis per week to a retailer. For the jootis that are supplied regularly, an artisan gets a fixed price agreed between a retailer and an artisan. The price is determined by the prevailing prices of such jootis in the market. Once a price is fixed, retailers procure them at the same price irrespective of any fluctuation in the market price and irrespective of festivals or seasons. Such contracts last as long as both parties are satisfied with each other. The payment by retailers to artisans is highly irregular and only part payments are made. For example, 50–70% of payments are made at the time of supply and the balance in the second transaction but again some balance is withheld by retailers. As a result, the artisan effectively finances some of the business of the retailer. As wholesalers stock various designs of jootis, retailers procure from them in case they need a particular design. Retailers usually pay in instalments. The amount of each instalment is fixed by mutual agreement. No interest is, however, charged for the period over which payments are made; the period may vary from a week to a month. Retailers prefer to keep a profit margin of 25% on the cost price. The sale price varies depending on the type of customer; in most cases customers resort to bargaining. This in-turn affects the profit margin, which could be in the range from 5% to 25% for a pair of jootis. The average sales turnover of these retailers is about Rs2,000 per day during the lean season and about Rs6,000 per day during the peak season.


3.4.4 Village agents There are around 20 village agents in the villages of Udaipuria, Savardha and Ramjipurkalan in Jaipur district who procure jootis from artisans directly and sell them either at the Jaipur haat or supply to retailers and/or wholesalers at various places. In Udaipuria village where mojaris are made, village agents are more common, efficient in their functions and have access to the Delhi market. Box 3.1 (following page) provides information on village agents in Udaipuria. In Savardha, the village agents do not limit themselves to a few artisans for jootis. Orders are mainly obtained from village-level retailers based in villages of Rajasthan and bordering areas of Gujarat. Once an agent obtains an order, he looks for artisans who do not have too much work during that particular week and places an order with them. No advance payments are made to artisans for processing this type of order. In Ramjipurkalan, there are a few part-time village agents. They sometimes procure jootis from fellow artisans at a margin of Rs5 per jooti and sell them to traders at the Jaipur haat or Jaipur-based retailers/wholesalers. 3.4.5 Exporters Exporters supply the uppers of jootis which are stitched to the soles made by artisans. Artisans are paid as per the cost of material used in the sole and labour charges. The cost of each pair of jooti is predetermined by artisans and exporters based on labour charges and materials provided by the former. This type of association between exporters and artisans is not on a regular basis and based on specific orders. Artisans are contacted only when the exporter has a particular order. The following table presents information on the proportion of respondents using various marketing channels for the sale of their products. It incorporates multiple responses from individual artisans

Source % of respondents

Delhi through village agents 19 Jaipur haat 87 Other local village haats (Dausa, Mahua) 5 Jaipur retail showrooms/wholesalers 15 Exhibitions and fairs 8 NLDP (funded by the UNDP) 2

It is evident from the table that most of the artisans use the Jaipur haat as the main market channel because it is a very big market for selling traditional jootis. Mojaris are largely sold in other markets including Delhi. Accessibility of the Delhi market through village agents is available to almost all the artisans in Udaipuria village and to some of the artisans in Maanpura Macheri village who are producing mojaris. Mojari producers in other villages who do not supply to the Operation Mojari programme sell their jootis to Jaipur-based


retailers/wholesalers. The number of artisans associated with UNDP-NLDP is gradually decreasing because of the strict quality checks, which according to the artisans, are arbitrary.

Box 3.1: Village agents in Udaipuria

Under the Operation Mojari programme, a few artisans from Udaipuria got a chance, a few years ago, to attend an exhibition in Delhi. The exhibition also provided them an opportunity to interact with Delhi-based wholesalers and based on this interaction the artisans realised the demand potential for mojaris. Some of the artisans started visiting the Delhi-based wholesalers and selling mojaris to them. As a result of the increasing demand for mojaris in Delhi over a period of time, some of the artisans became regular suppliers of mojaris to these wholesalers and even became village level marketing agents. There are now about 10 such agents, all of whom belong to the artisan community.

Working methods Village agents obtain orders for jootis from Delhi-based wholesalers and contact artisans in the village to place orders with them. Artisans are provided with some advance money to process the order, often equal to one-fourth of the total value of the order. However, agents generally do not provide any advance to those artisans who make inferior quality jootis. Once the order is complete, village agents supply jootis to Delhi-based wholesalers. The wholesalers normally make immediate payments to these agents after receiving thegoods. After returning from Delhi, village agents make the balance payments to artisans in the village. Most of the time artisans receive payments within 3 days of supplying jootis to agents. The combined sales turnover of these village agents to Delhi is about 5,000 pairs of jootis per week. Each village agent has a contact with one or two Delhi-based wholesalers to whom they supply on a weekly basis. All agents hire a truck to go to Delhi and the cost of transportation is shared by them in proportion to the number of cartons of jootis they transport.

Agents have an informal association with village artisans to get their orders processed. This association is not binding on any artisan. The artisans prefer to work for a particular village agent until payments become irregular.

A village agent often tries to attract skilled artisans, currently not working for him, by offering some extra money (Rs 3-5 per pair of jootis). However, the incidence of shifting to another agent for extra money is very rare—probably due to social reasons. Village agents claim that they earn a margin of Rs5 per pair of jootis. Payments made to different artisans for making similar pairs of jootis vary. This variation is based on the quality of jootis made by the artisan. For a particular jooti that is supplied to a Delhi-based wholesaler at the cost of Rs75 per pair, payment to artisans could vary between Rs60 and Rs72.

3.5 Market linkage and related information


• Details of the services are discussed below

3.5.1 RUDA As indicated above, RUDA provides services related to market linkages and market information. RUDA sends information about exhibitions, mainly venues and dates by post to artisan groups formed under the Operation Mojari programme. Artisans are expected to bear the cost of food, transportation of goods and other travel expenses. It provides them with free stalls for the exhibitions. RUDA is either invited to or buys stalls at exhibitions organised across the country and usually pays nearly Rs10,000 per stall. Market access under Operation Mojari Artisan groups, under the Operation Mojari programme, are provided with market access as well as other services. They are supplied with the upper of jootis by UNDP-NLDP but use their own leather and other materials required to prepare the sole. Artisans are paid on the basis of labour charges and cost of the materials used. Depending upon various patterns, they are paid between Rs60 and Rs100 per pair. An artisan normally supplies about 30 jootis per week. Artisans have to pay Rs5 per pair to UNDP-NLDP for the finishing of the jootis. The payments are made by cheque a week after the supply. Strict quality control is observed and an inferior quality of jootis is rejected. Of the rejected jootis, the cost of the upper is deducted from the total payment made to the artisans. Artisans feel that the criteria for rejection are vague and they are not aware of these criteria. They find it extremely difficult to sell the rejected jootis in the market and usually sell them at a loss. The number of artisans supplying jootis to UNDP-NLDP is rapidly reducing due to • vague reasons for rejection and also the increasing rates of rejections • irregular payments The table below summarises RUDA’s work in promoting market links in the sub-sector In-house capacity

Links created

Strengths • Understand the market for jootis

In order to cater to the market demand in terms of changing patterns and designs of jootis, RUDA constantly innovates in patterns and designs with the help of experts.

• Understanding of exhibitions

Its direct involvement with organising exhibitions coupled with informal feedback from artisans participating in various exhibitions across the country has helped RUDA develop an understanding of exhibitions. RUDA has a good understanding of sales potential, types of products

• RUDA gets information about exhibitions through DIC and DC(H)

• With government and non-government organisations all across the country

• With exporters


In-house capacity

Links created

in demand and the profile of consumers in these exhibitions. In a year, RUDA participates in about 25–30 exhibitions through artisans associated with it.

• High level of awareness about RUDA

among artisans

• The majority of leather artisans, particularly in Jaipur district, are aware of RUDA and its activity in the leather sub-sector. Even though there is discontent

among a section of artisans who have not been given a chance by RUDA to attend any

exhibition, they regard RUDA as the preferred choice for obtaining services related to participation in exhibitions.

Perception of RUDA RUDA realises that there is a high demand for services related to market links and information from all sections of leather artisans. In the case of traditional jootis, the product is limited in its penetration into markets beyond rural Rajasthan. In order to access the lucrative markets beyond rural Rajasthan, artisans would like to receive market information and facilitation to develop links with wholesalers, retailers and exporters. RUDA thinks that there is a strong possibility of commercialising the service. Although the provision of a free stall by RUDA acts as an incentive to artisans wanting to attend exhibitions there is a section of mojari-producing artisans who are willing even to pay for the stalls. This is because they have realised the benefits of attending exhibitions in terms of better sales, better profit margins and developing links with wholesalers/retailers/exporters. 3.5.2 Development Commissioner (Handicrafts) DC(H) DC (H) requires artisans to be registered with it in order to participate in exhibitions organised by it. The registration of artisans is done first with the District Industries Centre (DIC) and then with DC (H). The registered artisans are informed about exhibitions by post. An artisan attending an exhibition generally gets another chance only after six months. The stalls at exhibitions are provided free of cost . 3.5.3 DIC Exhibitions organised by DIC are meant for artisans from small and micro-enterprises in the district. These are usually organised once a year. DIC places advertisements in local newspapers and sends letters to artisans registered with it. DIC also sends invitations to agencies/organisations working with artisans who, in turn, send their groups to the exhibitions. In such cases, the organisation pays Rs7,500 for a stall to DIC for an exhibition of 15–20 days. Until 2002, artisans were charged only Rs 1,000 for a stall. In-house capacity (DIC/DC[H]) Links


Strength

• A good network and administrative set up

Weakness • Limited role in the leather sub-sector • Most leather artisans unaware about its role as service

provider for market information on exhibitions. Only 3% of artisans covered by the survey knew about DC (H).

• Inability to register with DC (H) because of the lack of knowledge of the procedures involved

• Artisans registered with DC (H) get information about exhibitions only once in six months

• Although artisans are provided with all facilities such as travel allowances and free stalls they find the frequency to be very low

• DIC provides detailed information about exhibitions to RUDA and other organisations.

Perception of DIC and DC (H)

As these organisations are not exclusively involved only with leather artisans, they could not comment much about the demand for this service from leather artisans. However, they agreed that the demand for attending exhibitions is very high across all types of artisans in Rajasthan.

3.5.4 NGOs A few NGOs working for artisans help them participate in exhibitions with the support of RUDA or the Small Industries Development Bank of India (SIDBI). RUDA and SIDBI provide information about these exhibitions to NGOs—usually those funded by them. This information is passed on by NGOs to artisan groups associated with them. In this case, the cost of stalls is borne either by RUDA or by SIDBI and other costs such as travel expenses, transportation of goods and food are borne by artisans. A local NGO, the Will and Way Foundation in Jaipur, in particular, provides this kind of support. Box 3.2 (below) provides a description of the work done by Kala Srishti, a Delhi-based NGO, that helps artisans attend exhibitions.

Box 3.2: Market support provided by Kala Srishti

The organisation has around 15 members and it has been established in order to • promote artisans making handicraft products • provide marketing support to the artisans by organising exhibitions and fairs • provide skill development training • provide information on new designs and technology to the artisans Till now, the NGO has mainly focussed on making markets accessible to artisans for their products through exhibitions. The support is not, however, limited to a particular sub-sector and various kinds of artisans – artisans making products such as leather toys, jootis/mojaris, hand embroidery, artificial jewellery, soft toys, terracotta and handmade paper products – have benefited. The decision to organise an exhibition is taken by members of the organisation in their monthly meeting and a tentative budget is allocated. They also mobilise funds through donations. On the basis of the allocated budget, the number of participants is decided and research for identifying a suitable venue and date is undertaken. Once the venue and dates are finalised, the artisans from various handicraft sub-sectors are informed through letters and invited to participate. Artisans usually confirm their participation by telephone.


Finally, advertising in newspapers and distribution of pamphlets is done to popularise the event in order to attract potential customers/buyers to exhibitions. The NGO makes the stay arrangements for the participants in a dharamshala or a guesthouse and the cost is shared among the participants. Artisans are provided guidance on salesmanship and display of products. A contribution of 15-20% of sales is taken from the artisans. For those with very poor sales, the organisation even the contribution and provides a travel allowance.

In-house capacity

Links

Strengths • Local NGOs have strong links with artisans • Credibility among artisans because of the voluntary objective of Kala

Srishti • Good understanding of handicraft markets by Kala Srishti who keep

themselves updated with the latest developments in the market scenario, designs and technology. Preliminary research before finalising venues and dates for an exhibition is carried out. Research during exhibitions is also done to know customer preferences, design patterns and target market.

Weakness

• The dependence on RUDA and SIDBI for information about exhibitions by Will and Way Foundation

• Small budgets restrict identification of better venues and large scale organisation

• RUDA and SIDBI provide information about exhibitions to the Will and Way Foundation

Perception of NGOs

The experience of NGOs suggests that there is a demand for this service. In all exhibitions organised by Kala Srishti, artisans have made contributions based on the level of sales generated. The study team estimates that at least 50-60% of the costs of organising the exhibitions is recovered in this way. This indicates that there is a good possibility of commercialising these services.

3.5.5 Artisans/relatives Artisans who receive information about exhibitions from any source but are unable or unwilling to participate pass on the information to their fellow artisans. Information about retailers and wholesalers of jootis is obtained during these exhibitions and from the Jaipur haat. During exhibitions wholesalers, retailers and exporters who like particular products collect detailed information about artisans and contact them at a later stage to place orders if required. This practice is also found in the Jaipur haat on a limited scale.

The market linkage service provided by institutional suppliers such as RUDA, DIC and DC (H) through exhibitions and fairs is limited. During the assessment, more mojari producers from Udaipuria reported this type of linkage than artisans from other villages. None of the respondents involved in traditional jooti production have ever attended any exhibitions/trade fairs.

3.6 Sources of supply for the service Table 3.1 summarises the sources and modes of supply of market-linked services.


Table 3.1

Services and modes of supply

Suppliers Service Mode of supply

RUDA • Market links under the Operation Mojari programme

• Market information about exhibitions and fairs

• Either to groups of artisans or individual artisans

• Artisans are informed about the venue and dates of exhibitions

• RUDA pays for the stall in exhibitions on behalf of the artisans

DIC • Market information about exhibitions

• Places advertisements in local newspapers and also sends letters to artisans registered with it to provide information about exhibitions

• Till about 2002, artisans were provided with stalls at a subsidised rate of Rs1,000 per stall

Development Commissioner (Handicraft) DC (H)

• Market information about exhibitions

• Artisans registered with DC(H) are informed about exhibitions through letters

• Free stalls in exhibitions organised by DC (H), for artisans registered with them

NGO • Market information

about exhibitions • RUDA and SIDBI provide information about

exhibitions to NGOs that are usually funded by them. The information in turn is passed by NGOs to artisan groups associated with them.

• The cost of stalls is borne by either RUDA or SIDBI but other costs such as travel, transportation of goods and food are borne by the artisans

Artisans/relatives • Market information

about exhibitions • Market links

• Artisans receiving information about exhibitions from any source but not wanting to participate pass on the information to their fellow artisans

• Artisans also obtain market linkage support from their relatives and fellow artisans – but this is limited

• The service is provided based on informal relationships; unsubsidised.

3.7 Interactions of BDS suppliers with artisans Table 3.2 presents the number of artisans a supplier interacts with for the service and the contents/nature and duration of the interaction.

Table 3.2

Interaction of BDS suppliers


RUDA Exhibitions: 100–125 artisans contacted every

Usually 10–15 minutes; time required is less for artisans who regularly

Information about venue, date and directions to reach the venue



year Direct market linkage through outlets: 100–150 artisans

attend exhibitions through RUDA

DIC and DC (H)

10–15 artisans per year

Mostly through NGOs or direct contact Duration of interaction is about 5 minutes

Information on venues and dates of exhibitions

Fellow artisans

1–3 artisans Not more than 10–20 minutes for providing information on exhibitions

Knowledge about dates and the venue

3.8 Extent of commercialisation

Table 3.3 presents the extent of commercialisation of the service.

Table 3.3

Extent of commercialisation

Source of supply Extent of commercialisation

RUDA/DIC/DCH Public money involved to varying extents NGOs In most cases public money is involved to varying

degrees so differential fees are charged Artisans/relatives Services are provided based on informal relationship

and without any obvious transactions; unsubsidised It is evident from the above table that the service provided to artisans mainly by institutional suppliers contains subsidy to varying degrees. 3.9 Conclusion 3.9.1 Issues related to the marketing service • Although the demand for the service is high among artisans, products such as traditional

jootis may act as limitations to potential BDS providers. Improvements in the quality of existing products as well as the development of new products may be required to enable artisans to buy these services on a commercial basis.

• Attending exhibitions is a major priority for artisans irrespective of the quality of their products. The existing practice of government institutions – DIC, RUDA, DC (H) – of subsidising the service acts as a barrier to the entry of potential BDS providers from the


private sector. However, these initiatives have made artisans realise the utility and importance of the service for their enterprises.

3.9.2 Market opportunities and learning • It is obvious that there is a high demand for this service. The services should be specific

to meet the requirements of various artisans—market links and information services for producers of traditional jootis may not suit those producing mojaris.

• A section of artisans are willing to bear the full costs of participating in exhibitions and fairs. More than 50% of the artisans are willing to pay the entire amount for the service. The remaining artisans are willing to pay partially in the initial phase.

• The provision of this service would be more meaningful if jootis were upgraded in terms of patterns and designs. The traditional jootis in the existing form are only suitable for the rural market which seems to be gradually shrinking. Hence training in producing new-designed jootis with different patterns and the production of other leather goods could be the first step.

• Importance and performance of village agents in Udaipuria in marketing mojaris suggests that the promotion of such agents in other villages would be productive. Capacity building of potential agents could be undertaken to enable them to provide this service to other artisans more effectively.


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