need assessment survey report swarna bazaar cluster...

Need Assessment Survey Report

SWARNA BAZAAR CLUSTER

GOLD JEWELRYVIJAYAWADA

Prepared for

MSME – NID DESIGN CLINIC SCHEME

By

Srinivasarao Pattur

Principal Designer - studio Greenrich

March- 2013

Acknowledgements:

This report would not have been possible without the guidance and support provided by the Caring MSME Nodal agency Team at NID:

• Mr. Shashank Mehta

• Mr. Purandar Das,

I would like to thank Ms. Sukanya Beranjee, Mr, Sharma and Mr. Parvinder Pal at MSME Foundation New Delhi for their support.

Thanks are also extended to each of the entrepreneurs at Vijayawada, Sri Dhanala Kota Srinivasarao The president of the association for his unconditional support and hospitality, Sri Somala Sudhakar rao, Sri Teki Venkateswara rao, Sri Goli Sivakumar and Sri Janjanam Chandrashekar Rao whose valuable inputs on innumerable issues helped me to understand the industry better to craft a more meaningful report.

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Table of content:

1) Acknowledgements-------------------------------------------------------------- 022) Background/ history/ Present situation-------------------------------------- 043) Survey Summary------------------------------------------------------------------ 054) Implications/ issues/ opportunities/ threats--------------------------------- 065) Surveyed facts, figures and evidences-------------------------------------- 086) Unit- 1 ------------------------------------------------------------------------------- 087) Unit- 2 ------------------------------------------------------------------------------- 108) Unit- 3 ------------------------------------------------------------------------------- 119) Unit- 4 ------------------------------------------------------------------------------- 1310) Unit- 5 ------------------------------------------------------------------------------ 1511) Swarna Bazar---------------------------------------------------------------------- 16 12) Commonly Used Tools and Machines --------------------------------------- 1813) Solution/ options with implications/ effects/ results----------------------- 2014) Recommendations and actions with input and outcomes values------ 21 15) Conclusions------------------------------------------------------------------------- 22

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Background/ History/ Present situation:

Vijayawada is a flourishing town of great historic importance. It was one of the important cities early in the Christian era, and was the religious centre for the kingdom of Vengi. Quite a number of antiquities found in and around Vijayawada confirm the city’s existence since ages. The Epic of Mahabharata refers to Indrakiladri hills as the place where Arjuna secured “Pasupathastra” from Lord Siva. This historical town has originated on the northern bank of the river Krishna and, by 1855 AD the town was in the form of small settlement on the eastern side of the Indrakiladri hills.

The growth of the town picked up momentum after the construction of a barrage and three irrigation canals namely Eluru, Ryves and Bandar canals in 1855 and, the rail bridge over the river Krishna in 1892. The city experienced a modest growth in the pre-independence era; however, after independence the construction of road bridge over the river Krishna, establishment of South-Central Railway terminal, setting up of divisional headquarters, major government offices including district court, major institutions for higher education, major commercial and distributive trading activities, wholesale establishments, agricultural marketing centre and Jawahar auto nagar industrial estate have brought a tremendous effect on the city’s growth.

Vijayawada, the third largest city in the state of Andhra Pradesh after Hyderabad and Visakhapatnam, also it is one of the important commercial and transport centers of the state. The city happened to be the headquarters of the taluk for a long time and acted as a point of centrality to many of the districts of the state. Over years the city has grown as a major economic, cultural and administrative nerve centre of coastal Andhra due to its nodal location as an important railway junction of and, also because of National Highway-5 and National Highway-9 traversing the city. The city also has a few places of historic importance. The city is situated at the foot of a low range hills on the northern bank of the river Krishna with its cardinal points as 16° 31’ North latitude and 80° 37’ East longitude, around 70 km away from the coast.

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Survey Summary:This report summarizes the Need Assessment Survey (MSME Design Clinic Scheme Initiative) conducted by Srinivasarao Pattur, Principal Designer at studio GREENRICH, Hyderabad.

Information collected between 26th to 27th December 2012, visit to every manufacturing unit and by interviewing the owners/ principals of these companies.

The purpose of this survey was to:

• Increase awareness about the value of implementing design process and to establish design thinking in MSMEs.

• Improve competitive edge of MSME manufacturing processes of products and services through design thinking.

• Understand the present design development and production process.

• Dig in for the scope to improve process design

Objectives of the survey are to evaluate MSME accomplishments in terms of:

• Create a sustainable design ecosystem for the MSME • Promote use of design though process by MSMEs for developing and improving

products design & development, manufacturing processes and services that are market led.

• Focus on building the design capability of MSMEs to enable them to improve business performance as well as compete in the global market.

Like any other growing towns Vijayawada gold jewelry making has been existing for countries in the city. How ever the intent is to check what kind of unique opportunities, threats, what are the missing missing links in the jewelry making process.

The survey is intended to find the gaps to improve upon, develop competitive edge so that the cluster gains the market share in the city and competes or becomes the trusted vendor with or to the branded chain of jewelry stores.

A very sporadic infrastructural development is in place; however the workspaces, process and methods are very traditional.

Photography documentation and interviewing techniques are been employed to survey the cluster to establish the facts and figures.

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Implications/ issues/ opportunities/ threats:Vijayawada gold jewelry cluster has great advantage for the simple reason, Vijayawada city is the biggest fast growing cities in the state of Andhra Pradesh. VIjayawada surrounded by very big townships and traditional villages which are very wealthy and these landlords from villages are having huge agricultural, dispensable income. The culture around is to invest heavily in Gold ornaments, most of these are gifted during festivals and marriages. The city has been showing exponential growth in trade and education business. The city become no exception in embracing new shopping culture and paved roads to many super malls and multistoried branded jewelry stores. In these rush hours, the traditional jewelry maker ended up taking backseats and slowly fading out into history.

Age old manufacturing tricks and trade practices are very much in use, some of these techniques are very primitive, cumbersome, slowing down the production rate, root cause for health issues and certainly posing big problem in finding willing human resource. Adapting contemporary jewelry manufacturing methods would mean certain investment in infrastructure building, plant and machinery, process development techniques. By investing in these areas, they may become preferred vendors for these ever growing Chain of jewelry stores.

Vijayawada jewelry making association, come up with a unique jewelry selling concept, which has the potential to become Chain stores across the country. “SWARNA BAZAAR”, is a gold jewelry showroom that promotes small time jewelry craftsmen and promises to offer high standards of Gold jewelry to it’s patronage. The jewelry manufacturers association wishes to educate the gold customers on issues such as gold quality and to find weights. Through this initiative the Gold smiths would have better opportunity to brand their produce and access to better income with out spending lot their time in dealing with customers.

Issues involved in making the ultimate move to bring in the modernization in are:• Conducting workshop to inform the goldsmiths new cost effective possibilities

in improving the present production processes.• Adaptation of Automated/ semi automated manufacturing machines • Branding adaptation into product design and development process (How to

let people around the country to know these jewels are manufactured only Vijayawada not else where, to get the design recognition)

• Brand Identity implementation into packaging and other display collaterals• Skills in design thinking to develop future design strategies

Availability of motivated and skilled human resources are becoming the biggest concern at Vijayawada, The Vijayawada Gold jewelry Manufacturers association is put in best efforts in motivating, handholding and encouraging youth by nurturing their entrepreneurial spirit and setting a showroom “Swarna Bazaar”, not only to improve the market share in terms of revenues/ wages but also improve the economic situation by increased employment and happiness index.

The Goldsmith industry in around Vijayawad is already come under bigger threat, possibly losing out the market share to the open modern bulk manufacturers or design labels from Mumbai, Surat, Kolkotta and Tamilnadu.

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The Jewelry association must Organize the goldsmith industry by paving the paths to generate healthy links with the big branded chin stores, take up the new challenges of modernizing common facility centers at subsidized costs of their tools, technologies and services. Professionally established vendor development and conducting periodical induction training programs to increase human resource will improve the situation and bring profits for small scale units.

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Surveyed facts, figures and evidences:

Gold Jewelry Making cluster units surveyed at Vijayawada:

Unit- 1

Name and address of the MSME unit: Basha Jewelry Works

Mahendra complex, shop no 5, Dumma Vaari street, governor pet. Vijayawada -2

Contact person name: Ameen Basha/ B Nagwswara Rao

Designation: Partners

Contact details: 0866 6647770

Product range: Haaram, Neck less, Bangles chains and all types of Jewels

Nature of work: Production for trade

Turnover: weekly 1 kilogram gold is processed

Infrastructure set up: traditional work stations/ wire and sheet extrusion machines

Employee strength: 10 members

The typical Age old workspace... the modern dressing and living conditions may need some modernization in way these craftsmen work and produce the jewelry.

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Opportunities for Design intervention:

The typical workstation where the craftsmen work are come from age old indian traditional Goldsmiths' culture.

Basha Jewelry Works must redesign their workstations, methodology to maximize space utilization and require modernization in tool adaptation and work comfort.

Branding, Packaging, Reviving the traditional Jewelry to attract period jewelry buyers as unique selling proposition.

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Unit 2:

Name and address of the MSME unit: Satyanarayana Gold Works

Contact person name: Satyanarayana

Designation: Owner

Contact details: 09966823535

Product range: nalla poosala golusulu...

Nature of work: Beads and gold...

Turnover: 800 grams per month

Infrastructure set up: Traditional set up


Lack of space planning and good workstation is making these two craftsmen to share the same worktop. the small worktop is no good in terms of stability or usability.



Satyanarayana Gold Works must redesign their workshop and workstations, methodology to maximize space utilization and require modernization in tool adaptation and work comfort.

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Unit 3:

Name and address of the MSME unit: Art of gold

Contact person name: Mandarapu SRINIVASARAO

Designation: owner

Contact details: 09246478733 0866 6622241

Product range: Rings, neckless, bangles, nose rings, navaratna stones diamond settingNature of work: stone setting, gold processing. Close setting work

Turnover: 1 kg gold

Infrastructure set up: traditional setup


Traditional methods are exotic, but the modern jewelry making methods make the work process safe, also make the craftsmen to be productive. Higher amount of productivity could be accomplished in the same time resulting in higher returns on the same wages and the same amount of time.

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Not enough space between two craftsmen and use of non standard flame generation equipment poor working space resulting poor motivation and finesse.



Art of Gold must redesign their workstations, methodology to maximize space utilization and require modernization in tool adaptation and work comfort.

The way Gas stored to use for flame is dangerous and require specialized handy system to store the gas tank.

Branding, Packaging, Reviving the traditional Jewelry to attract period jewelry buyers as unique selling proposition.

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Cluster 4:

Name and address of the MSME unit: Bondada Srinivas Gold Works

Contact person name: Bondada Srinivas

Designation: owner

Contact details: 09292953165

Gayatri complex shop no 3Dunnavaari streetVijayawada

Product range: Fancy jewelry/ sootrala golusulu, rings bigimpudu chekkudu...

Nature of work: Gold processing.

Turnover: 400 grams per month/ rs. 10000/- per member

Infrastructure set up: traditional setup


Lack of use precision tools and making/ crafting methods are resulting in poor quality jewelry.

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Type of tools and the way they are organized, the working conditions, the way they handle the jewelry making does not stimulate the craftsmen to bring the pride into what they are doing. these days the jewelry is loosing its sheen on craftsmanship front, the branded/ corporate jewelry is indeed become vogue due to the adaptation of modern manufacturing methods.


Bondada Srinivas Gold Works must redesign their workstations, methodology to maximize space utilization and require modernization in tool adaptation and work comfort.

Here the gas tanks are stored better way and the supply has been channelized however, improved tool storage, adapting modern production workstation systems will impact the unit’s production process and the quality & rate of production. Branding, Packaging, Reviving the traditional Jewelry to attract period jewelry buyers as unique selling proposition.

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Cluster- 5

Name and address of the MSME unit: Sri Kanaka Druga workshop.

Contact person name: Taki Venkateswara Rao

Designation: Owner Contact details: 0866 6612435 Shop no7, SVR complex Gavernarpet Vijayawada

Product range: Murugulu, Todalu (children bangles), Golusulu, Nalla Poosala Golusulu, Voddanaalu

Nature of work: job work , gold processing.

Turnover: monthly 1kg gold processing

Infrastructure set up: Traditional and power assisted machines


The Craftsmen generally sit on the floor mat with folded legs and do their work with minimal clothing. The reason is for this is the summer heat and their own work oriented heat.


Sri Kanakadurga Workshop must update their workstations, production methodology to maximize space and tool utilization and require modernization in tool adaptation and to improve working comfort.

Branding, Packaging, Modern Jewelry design inputs, Reviving the traditional Jewelry to attract period jewelry buyers as unique selling proposition.

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Swarna bazar: The CO-OPERATIVE GOLD STORE by Vijayawada Gold Jewelry Manufacturers association

Product Range: Kanta Haaram, bantipoola Haaram, Chanda Haaram, kaasula Haaram Chandravankala, Besari( mukkapudaka) Kammalu, duddulu, Addika kanta

Gold Jewelry Association Governing members body at the showrrom run by the association.

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Swarna Bazar Board of directors Gold Chains

Swarna Bazar Ear- Jewelry

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Commonly Used tools and Machines making Jewelry:

Cluttered workspace

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Cramped up machines

Wire and sheet Drawing Machine is not installed as per workshop standards to have good working conditions.

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Most of the tool are installed as they could find some space to keep then in place than as per workflow or ease of use.

Solution/ options with implications/ effects/ results:

Vijayawada Jewelry cluster has the potential to accomplish the distinction of being one of the successful gold clusters in the country. The Vijayawada Gold Jewelry Manufacturers Association is an enterprising body with better vision to deal with the exponential growth of the branded jewelry manufacturing and build their very own brand. These Gold smiths/ manufacturers to improve the manufacturing processes or find alternate better methods to improve their work environment to be more human friendly.

Around the world the precious jewelry making methods, techniques and technologies are under gone sea of changes and become much matured mass production industry. At Vijayawada the Gold jewelry manufacturing industry is still in its most traditional making mode, baring couple of units adapting few machines and production processes those were 50 years back technologies.

Precious metal Jewelry making process at Vijayawada require sea of change, it is recommended to develop new workspaces (Workshop tables, working methods to improve human factors at work to improves rate of production as well as better safety, both are inter connected and needs immediate attention. Least 10 hours of sitting with folded legged and working certainly has toll on the physical body and its ability to perform certain precision tasks, emotional mood and ability stay focused for longer hours. The restricted nature of workspace does not allow the Goldsmiths/ craftsmen to work with joy and comfort, causing various kind of ailments leading many people losing interest in the profession.

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Recommendations and actions with input and outcomes values:

Vijayawada has the advantage of being Gold jewelry manufacturing center in Andhra Pradesh. The biggest advantage is its geographical location and the city being the fastest growing commercial/ trading city in the state. Cooperative Gold Jewelry production at large scale (be it automated or Semi- automated) as a vendors to branded showrooms as a prime option and as a secondary option, is to strengthen their financial resources and scale up Swarna bazaar presence in the market to.

Vijayawada cluster is recommended to do:1. Build a common ground to generate technically trained human resource pool.2. Embrace modern technological development in the gold jewelry manufacturing

methods and process.3. Train the existing Goldsmiths/ craftsmen to adapt new and more mechanized/

Semiautomated production methods to make the production less cumbersome.4. Must incorporate automated/ semi automated mass manufacturing methods and

process to increase local bulk production.5. Redesign and systemize the production process.6. Common Research and Design development facility will bring in fresh ideas, or tie-

up with jewelry designers or product designers to get periodical design inputs.7. Gold Jewelry Manufacturers Association must initiate development of simple special

purpose machines and demonstrated the benefits to its members to get the overall picture of facts and figures outlining the investment costs and ROI (return on investments).

8. Gold Jewelry Manufacturers Association also initiate conducting periodical design workshops/ seminars focusing on fashion, trend forecasting, Jewelry making, Packaging methods, Manufacturing/finishing methods, Process planning and improvement methods, quality control and management methods of imitation jewelry manufacturing.

9. Must initiate exposure/ training/ implementation of bulk jewelry manufacturing processes.

There is a scope to redesign and upgrade the existing Jewelry crafting/ manufacturing methods, processes and machinery to influence and enhance the rate of production, fit and finish of the end product to gain better value at the market place.

Gold Jewelry Manufacturers Association should be conducting a workshop on “Design, Technology trends in Gold Jewelry manufacturing Industry”, this workshop would bring in new perspectives and discussions to the table to define the future strategies and steps to be taken in the better interest and future of the Gold Jewelry Manufacturing Industry.

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Conclusions: The strategy to be adapted to accomplish the goals for Vijayawada Jewelry Cluster are:

One: Conduct “Awareness workshop” on the topics ‘Design, Technology, Machinery, Process trends in Precious metal Jewelry manufacturing Industry’ to inform, empower and gain the trust of the entrepreneurs/ master craftsmen to understand latest developments and new possibilities.

Two: Develop a system/ body of knowledge to Research, Design and develop simple, semi-automated or automated (special purpose) Bulk production/ manufacturing machines and develop process to handle mass production, enhance the rate of bulk production at better quality.

Three: Conduct series of technology and process development short term courses, training seminars and workshops to build human resource and refresh/ polish the existing workforce.

Four: Design and develop New-age workbenches and induct new tools and techniques to make the Precious metal Jewelry making is more friendly and less cumbersome .

The way forward to survive/ sustain or counter the onslaught of labeled/ branded big corporation run Jewelry stores and manufacturing is by way joining the as organized vendors. The Association must invest time and efforts in the direction discussed the above would certainly bring in the edge of producing the top quality bulk jewelry at relatively economical ways to gain price sensitive trade advantage in the market place and also move up in generating higher monthly income for the crafts persons as the demand and the trust gets increased year after year.

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