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Meadow: Power to You

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Individual Group Cluster Corporative

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y To orient towards entrepreneurship.

y To increase earnings.

y To create avenues of self employment.

y To ensure regular supply of goods & services.y To develop entrepreneurship with improved methods

of production.

y To preserve craftsmanship & art heritage.

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y Project identification

y Information Accessibility

y Ideas

y Capital Organizationy Support System

y Market Assessment

y

Market Researchy Feasibility Report

y Registration Procedure

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y Catering to local needs for goods and services withinthe village through local enterprise

y Establishing links for supplies of goods and services to

towns without the necessity of migrationy Generating wage employment in non-farm enterprises

which are not owned by the poor but employ them ,

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y Generating wage employment in the public sector by creating and managing publicly ownedproperties/infrastructure

y

Establishing linkage-intensive industrial activities inrural areas

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y Identifying market opportunities

y From Experimentation to Adaptation to

Commercializationy Managing linkages

y Responding to changing markets

y

Capital requirements

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The Dharmapuri district in Tamil Naduadjoining Bangalore on the southernside is drought prone.

As part of an 'industrial dispersionprogramme, the State Governmentpromoted industrialization of the Hosurarea of this district.

The resulting rapid industrializationcreated a demand for both labour as

well as services which became aredeeming feature for the district'spopulation.

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In 1989-90 PL AN International entered into a partnership withMYRADA in Dharmapuri district to promote child-centredcommunity development programmes.

The project area expanded to cover six blocks and 300 villages.

In 1990-91 MYRADA became the nodal agency in Dharmapuridistrict to collaborate with the Tamil Nadu Women's DevelopmentCorporation on an IFAD-funded programme of credit support.

This put the project's focus f irmly on working with rural womenfrom poor households.

The project's direct intervention expanded to cover nine blocksand 580 villages.

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In 1983 MYRADA began working in around 60 villages of Thally block of Dharmapuri district with the support of HOPEInternational Development Agency, on programmes related to

land-based livelihood improvement.

The area around Hosur- a village where it worked-is dotted with more than 400 small, medium, and large industrialenterprises.

In 1991-92, at the request of MYRADA, students from IRMA did a small project to explore possible collaborations betweensome of the industries in Hosur and the rural populations with

whom MYRADA was working.

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TITAN (Tata Indus tries, Tami l Nadu) - a major watchmanufacturing company - was one of the companies to respond very positively.

The collaboration between TIT AN and the women organised by MYRADA into SHGs first began in 1992.

A contract given to a group of women in Denkanikotai block tolaunder uniforms of the TIT AN factory workers.

This collaboration gave both MYRADA and TIT AN the conf idence to work together on more programmes that could employ the rural poorproductively .

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y 1995:- Discussions between MYRADA and TIT AN for apossible collaborative venture to engage young womenfrom poor households in the assembly of watch straps.

y 1996:- Management of Enterprises and Developmentof Women (MEADOW) started informally in 1996

with a small group of young women selected by MYRADA.

THE INTERVENTION

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y Issue of who to make payments to.

y MYRADA encouraged TIT AN to deal directly with the young women, including entering into contracts andmaking payments.

y TIT AN's auditors objected strongly once again thatpayments were being made informally to groups withno legal status.

y To take care of this problem, in September 1998,MEADOW was registered as MEADOW RuralEnterprises Private Limited .

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y 1996: 24 women working in three task groups; only bracelet lineassembly.

y 1997- 1998 : Hand-pressing of bracelet components .

y 1999 : Table-clock assembling, Silver and gold rope-making,precious-stone fixing.

y 2000 : Loop fixing Calendar main plate sub-assembly

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Expansion of the MEADOW workforce has been gradual,based both on the expansion of existing activities and on theintroduction of new activities

For the selection of workers the following process isfollowed:

MEADOW and TIT AN agree on the number of workersneeded in order to meet the work quotas

MEADOW contacts MYRADA-PL AN Dharmapuri Projectand informs them of the need to recruit more workers

The project uses its field staff to pass on messages to self-help groups (through the cluster level SHG federations)

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y Potential recruits must be young women from poor households.

y They must have at least high-school level of literacy and education (8thstandard).

y They must be willing to reside at or travel to the work premises.

y They must be willing to commit to at least three years of service.

y They must not already have any immediate family member working inMEADOW.

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y TIT AN screens the potential candidates for sharp eyesight, nimble fingers,

attention to detail, patience, and their motivation to help their families. Those who complete the training successfully go on to become full-timeemployees.

y In recent months, the training focus has been making each workermulti-skilled, so that task groups with slack quotas can help those withhigh quotas.

y New recruits are usually in the age range of 17 to 24.

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INVESTMENT DETAILS

MEADOW was initially supported by MYRADA-PL AN DharmapuriProject to the extent of Rs 15 lakhs (1995 to 1998).This was invested inthe following area :

y Purchase of 1.7 acres of land

y Construction of a workshed for 100 young women (for this, Rs 2.5 lakhs was alsocontributed by MEADOW)

y A borewell on the landy 24 (out of the 36) hand-press machines

y A magnifier

y A generator

y Start-up set of small tools

y Basic set of furniture

y Initial training costs (stores management and material accounting)

y Payment to MEADOW's Chief Executive Officer up to 1998

All the above investments from MYRADA were made prior to theindependent registration of MEADOW.

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y Women - guided by the Chief Executive Officer - took an early decision tosurrender a part of their wages to build up a fund for the company.

y Payments by TIT AN are made on piece rates, based on the jobs executed.

y

In 1995-96, for every rupee received in payment, the young women surrender55 paise to MEADOW and take home 45 paise, subject to a minimum take-home wage packet of Rs 900 per worker per month (actually, they were able totake home up to Rs 1,200).

y By 1998-99 for every rupee earned, they would surrender 15 paise and take

home 85 paise subject to a minimum take-home wage packet of Rs 1,200 per worker per month.

y At present the minimum wages for a full month's work is Rs 2,500. At peak

production the young women are even able to take home up to Rs 3,500.

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y Part of the costs of constructing the workshed (Rs 2.5 lakhs)

y Purchase of a second-hand jeep, a new motorcycle, and a moped

y Purchase of 12 handpress machines

y An air-conditioner and an air-compressor (for the table-clock section)

y A computer, UPS, and printer

y Rent deposit (Rs 1.6 lakhs) for a second workshed

y Telephone deposit

y All furniture and fittings like fans, emergency lights, table lights, etc.

y Rs 40,000 spent on ensuring regular supply of 40 HP power

y Water and electricity connections.

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y

Payment of salaries and allowances

y Telephone rental and call charges

y Electricity bills

y Rent for building

y Vehicle maintenance and running costs

y Office expenses

y Travel bills

y Hospitality and guest expenses

y Training of young women

y Donations and social activities(MEADOW often engages in socialactivities).

MEA DOW annually transacts

business worth Rs 40 lakhs. It has

accumulated assets in excess of Rs

50 lakhs, held in the form of land,

building, machineries and

equipment, bank deposits, etc.

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y Initially one Chief Executive Officer-Paid by MYRADA apart from young women

y At Present-11 Staff members apart from young women

workersy Chief Executive Officer (1)

y Accountant -Cum-System Operator (1)

y Technical Supervisors (3)

y

House-keeping staff (2)y Driver (1)

y Security (3)

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y Board of Directors of MEADOW -Three young women

y S election-By other young women

y T enure-one year

y Replacement S election-In Annual General Body meeting

y Ex-officio member of the Board- Project Co-ordinator of MYRADA-PL AN Dharmapuri Project

y Board Meetings are held once a month and attended by one representative each from all the 16 task groups thatpresently make up MEADOW.

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y Attracted number of interested visitors ranging fromgrassroots level NGO workers to Swiss Ambassador toIndia and the President of the World Bank's

International Finance Division.y As an impact of this both MYRADA and TIT AN are

regularly approached with requests to see 'theexperiment'.

y TIT AN received an international award for socialdevelopment that it attributes at least in part to its

involvement with MEADOW.

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y Very much motivated & enormously encouraged by beinginvolved in every step of the way in building and running theircompany.

y Built the capabilities to directly negotiate with TIT AN in theannual revision of y piece-ratesy handling all purchasesy controlling the movement of their vehiclesy drawing up work schedulesy calculating paymentsy follow up on receivables

y Doing the base work for meeting all statutory requirements etc.y Improvement in their incomey In most of the cases the women workers had become the most

important wage earner in the family

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y Improvement in their social status within theirfamilies and communities

y They were not pressurised for early marriage

y Improvement in the social space with the freedom tolead a better social life

y Paying off the debts, contributing to purchase assets,educating their siblings, picking up medical bills, and

making savings in cash and gold.y Increased involvement in the family as now they are

consulted on all family decisions

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y MYRADA's first experience of promoting a private limited company asan institutional base for the poor.

y Young People

S

hares and shareholders:y A private limited company has to have less than 50 shareholders,

y So how can all 212 young women own MEADOW? And how tosafeguard shares from being sold away to outsiders?

y After a lot of thought, it was decided that shares would be held by thetask groups rather than individuals.

y Thus, the shareholders would be 16 groups rather than 212 young women. So each group selected a representative and shares wereallotted in her name.

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Y outh and inexperience:

y The girls are young and without formal work experience.

y There was an anticipation that they would not be taken very seriously in discussions of any consequence.

y People dealing with MEADOW still prefer to deal with the Chief Executive Officer.

y Communication in English is also a major problem.

Critical Analysis

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Ownership issues:

y Do all young women feel that they actually own the company?

y Coming from a background where they have not been exposed to theconcept of shares, shareholding, and company

Age and dexterity:

y Sharp eyesight and nimble fingers deteriorate with age.

y Where earnings are linked to levels of production, workers whoseproduction levels decrease due to the natural consequences of agingaffect the company's profit margins.

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Exclusive dependence on TIT AN:

y Most major weakness. The survival of MEADOW hinges onTIT AN

Macro-economic influences:

y Cheap watch bracelets from China are soon expected to f lood theIndian markets, posing a threat to the watch industry in India, whichincludesTIT AN.

y The consequence is threatening to MEADOW as well.

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y Collaboration between NGOs, rural communities andthe corporate sector

y To build a successful institution owned and managedby the poor themselves requires the heaviestinvestment of time and energy in the area of capacity building.

y What needs to be built up along with incomes are anadequate asset base, knowledge and skills that can

stand the poor in good stead even under conditions of risk.

y Breadth versus Depth

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