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Diagnostic Study Report of

Trichy Handloom Cluster

Diagnostic Study

Trichy Handloom Cluster

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Contents

S No Topics Page Nos.

Executive Summary

1 Textile Industry Scenario

2 Historical Evolution of the Cluster

3 Core Cluster Actors and Institutions

4 Analysis of Business Organisations

5 Inter Firm Industrial Organisations

6 SWOT Analysis of the Cluster

7 Vision of the Cluster

8 Problems and Gaps

9 Implementation Strategy

10 Action Plan

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EXECUTIVE SUMMARY

The Handloom Industry in India offers livelihood to masses all over the

country. Despite the government schemes, the Handlooms in many parts of

the country are struggling to survive. Trichy is one such place where the

handloom industry is in the declining trend for the past 5 years.

The ancient 300 BC Chola capital called Woraiyur, is the today’s Trichy. The

handloom industry situated in and around the district tells the pathetic tale of

the surviving weaving communities. The reasons are many fold.

Globalization, changing market trends, growing production of these varieties

in powerloom, highly fluctuating yarn market, lethargy of the weavers

towards the activity, mismanagement of the cooperative institutions and

misuse of the government rebate scheme are some of the reasons attributed

to the state of affairs of the handloom industry. Due to these reasons about

50 % of the weavers left the area in search of livelihood to other districts and

even to the nearby state Kerala.

The chapter 1 deals with the global textile industry scenario to the present

handloom industry in Trichy district and the market share of the major cluster

product, saree.

INCOMPLETE. FULL FORM WILL BE SENT IN DUE COURSE

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1.0 TEXTILE INDUSTRY SCENARIO

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1.1 Global Textile Industry Scenario

Global Textile Market today is worth more than $500 billion and it is still growing

every year. Textile and apparel trade represents nearly 6% of total world exports.

Textile Trade has exploded eighty-fold during the past forty years, from under $6

billion in 1962 to $453 billion in 2004. The more labor-intensive apparel export

sector has grown more rapidly than textile exports. The recent globalization of the

textile trade has opened up highly demanding and evolving requirements for

outsourcing of textiles. During the last quarter of the previous century, the share of

developing countries in world textile exports improved from 15 to 50 per cent.

1.2 Textile Agreements Pre & Post MFA

The Trade in Textiles from 1974 – 1994 was controlled under MFA (Multi-Fiber

Agreement) through which a particular country is restricted to export its textile

products beyond a certain level to European and US markets. It is clear, efforts to

liberalise trade and textiles has been tough. The key players from the developed

countries took protective measures and made heavy investments in textile, and the

result, the developed countries became the most capital-intensive nations within

the textile manufacturing segment. At the same time, developing countries were

subject to quantitative restrictions, thus keeping a strong hold on textile exports,

keeping the edge by optimum textile production. The MFA was terminated with

entry into force of the World Trade Organization (WTO) and its Agreement on

Textiles and Clothing (ATC) on 1 January 1995. The WTO renewed the MFA with an

Agreement on Textiles and Clothing (ATC), which agreed that all quotas on textiles

and clothing would disappear between member countries on January 1, 2005. The

expiration of ATC marked the end of quotas, limiting textile and clothing trade

between the WTO members. While India and China are likely to emerge as winners,

the main losers after quota will be quota-restricted countries who have enjoyed the

benefits and protection for more than 40 years. Costs remain the driving factor in

the post-quota world but now the advantage will be greater as retailers are bound

to raise the bar higher on the responsiveness and flexibility from their suppliers.

1.3 Competitiveness and the Future

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Manufacturers in developed countries are more likely to adapt by relocating

operations to production centers in low wage countries. Those who choose nearby

locations will also benefit from market proximity and speed of response. Textile

manufacturers supplying regional and domestic apparel producers have survived by

investing in technology. It allows them to achieve some of the highest productivity

in the world. Innovative approach has helped manufacturers to differentiate their

products and maintain an edge over competitors. Quota elimination has its flip side

as well. It will force down clothing prices further and will also help retail buyers to

concentrate upon the most competitive suppliers in terms of cost, quality and

productivity. It will be a race and emerging winners would include companies who

will be able to deliver large volumes from integrated structures through partnership

and other ventures. The quantum leap in exports of textiles from developing

countries occurred despite high tariffs and quantitative restrictions imposed

particularly by economically developed countries. It is important to highlight the

role of the multifunctional textiles, intelligent textiles, eco-textiles, e-textiles and

customized textiles in the future of the textile-apparel sector to cope up with the

changing face of textile industry.

1.4 Indian Textile Industry Scenario

The Indian Textile Industry has an overwhelming presence in the economic life of

the country. Apart from providing one of the basic necessities of life, it also plays a

pivotal role through its contribution to industrial output, employment generation,

and the export earnings of the country. Currently, it contributes about 14 percent to

industrial production, 4 percent to the GDP, and 16 percent to the country’s export

earnings. It provides direct employment to about 35 million people. The Textile

sector is the second largest provider of employment after agriculture. Thus, the

growth and all round development of this industry has a direct bearing on the

improvement of the economy of the nation. The Indian textile industry is extremely

varied, with the hand-spun and hand woven sector at one end of the spectrum, and

the capital intensive, sophisticated mill sector at the other.

1.5 Indian Handloom Industry Scenario

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Handlooms constitute the rich cultural heritage of India. The handloom weaving, as

an economic activity, provides livelihood to the people. The element of art and craft

present in Indian handlooms makes it a potential sector for the upper segments of

market in domestic as well as global. The sector accounts for 13% of the total cloth

produced in the country. Innovative weavers with their skillful blending of myths,

faiths, symbols and imagery provide their fabric an appealing dynamism. The

strength of Handloom lies in introducing innovative design, which cannot be

replicated by the Powerlooms. In spite of the Government intervention through

financial assistance and implementation of various development and welfare

schemes, the number of handlooms is continuously reducing all over the country.

The reasons are manifold. New generation are not readily joining the weaving

activity. Low wages, continuous increase in yarn prices, obsolete technologies,

unorganized production system, low productivity, inadequate working capital,

conventional product range, weak marketing link, overall stagnation of production

and sales and, above all, competition from powerloom are the factors forcing the

handloom sector difficult to survive.

1.6 Tamil Nadu Handloom Industry Scenario

Handloom industry in Tamilnadu plays an important role and provides employment

for more than 4.29 lakh weaver households and about 11.64 lakh weavers.

According to the Director of Handlooms & Textiles, about 2.11 lakh handlooms are

functioning in 1247 handloom weavers’ co-operative societies and the remaining

looms are outside the co-operative fold. The handloom weavers’ co-operative

societies mostly exist in Rural and Semi-Urban areas, where there is large

concentration of handloom weavers. The handloom weavers co-operative societies

have produced 1083.26 lakh metres of handloom cloth valued at Rs.559.72 crore

and sold to the extent of Rs.696.58 crore during the year 2004-05. There is an

increase of sale of handloom cloth worth Rs.122 crore in 2004-05 over previous

year 2003-04. The number of handloom weavers societies working on profit has

been increased from 527 to 601 during the year 2004-2005. Marketing is the major

factor for the performance of the handloom weavers co-operative societies.

1.7 Trichy Handloom Industry Scenario

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Trichy Handloom cluster consists of many sub-clusters with in a radius of 50 km.

They are Manamedu, Musiri, Paithamparai, Thathiengarpet, Kottathur, Thuraiyur,

Poovalur, Mettupalayam, Samayapuram etc., 5 years before, there were more than

10000 looms were operating in the cluster. Due to the price competition from

powerloom sector, the trend is continuously declining. To day 1/4th of the business

only is happening. 3/4th of the master weavers, and merchant manufacturers left the

business. As the survival becomes difficult, most of the weavers left the area and

migrated to Tirupur, Karur and Kerala in search of jobs. Most of the weaver

members are unhappy about the functioning of the societies, as there is no

continuous employment provided by the societies. The main products of the cluster

are Cotton sarees, cotton voile fabrics cotton dhotis and uppers. The total turnover

of the cluster estimated to be around Rs. 10 crores, in which 70 % are woraiyur

cotton sarees, 20 % are voile fabrics and 10 % are of dhotis and uppers.

The total market size of the cotton saree in India, according to the Textiles

Committee’s consumer house hold survey, is 330 million pieces. The Cotton sarees

produced in Trichy cluster for an year is estimated to be 3,00,000 pieces of value

around 7.5 crores, which works out to be only 0.1 % of the country’s requirement.

The total handloom cotton sarees produced in Tamil Nadu, according to the

Statistical Hand Book of the Department of Economics and Statistics for year 2005,

is 59, 21,167. The Trichy cluster contributes 5 % of the handloom cotton saree

production in Tamil Nadu.

2.0 HISTORICAL EVOLUTION OF CLUSTER

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2.1 History of Trichy Handloom Cluster

Woraiyur, a part of present day Tiruchirappalli, was the capital city of Cholas since

300 B.C. Later, Woraiyur came under   the control of Mahendra  Varma Pallava I,

who ascended  the throne in AD 590. Till AD 880, this region was under the

hegemony of either the  Pallvas or  the Pandyas.  It was in AD 880, Aditya  Chola

brought a downfall to the Pallava dynasty. From that time onwards Tiruchirappalli

and its region became a part of Greater Cholas.  In AD 1225 the area

was occupied by the Hoysulas. Afterwards, it came under the rule of later Pandyas

till the advent of Mughal Rule. Tiruchirappalli was for some time under the Mughal

rule, which was put to an end by the Vijayanagar rulers.  The Nayaks, the Governors

of Vijayanagar Empire, ruled this area till    AD 1736.   It was Viswanatha Nayaka

who built the present day Teppakulam and the Fort. The Muslims rules

this region again with the aid of either   the   French   or  the English armies.

For some years, Tiruchirappalli was under the rule Chanda Sahib and

Mohamed Ali.  Finally the English brought Tiruchirappalli and other areas under

their control.   The district was then under the hegemony of British for about 150

years till the independence of India. As the sarees woven in and around the ancient

Cholas capital Woraiyur, since then it is called Woraiyur sarees.

2.2 Present day Trichy Handloom Cluster

To day it is estimated that about 2500 handlooms operate in both Co-operative and

Private sector. As per the statistics available with the Assistant director of

Handlooms Trichy, the total number of handlooms in the cooperative sector is 4255

in which 1461 are working looms and the remaining are idle. The value of

production during March, 2006 was around 45 lakhs only. The current population

dependant on weaving and allied works living in Trichy district is estimated to be

around 25,000 0nly.The weaving communities are Padma Saliyars, Devangas and

Mudaliars. Out of 29 Co-operative societies, 27 are working, and one is just

registered and one is dormant. Though the number of profit making societies is 19

in number, the accumulated loss of these societies runs into more than 5 crores.

M/s. Thathiengarpet Weavers Co-operative Society, once popularly known for its

quality dhothies, is almost at the verge of closure and presently no activity. The

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handloom industry in the cluster comes down drastically in the last 5 years. The

voile fabrics produced on handlooms reduced from 5 lakh metres to about 1 lakh

metres. The competition from powerlooms forced few master weavers to switch

over to powerlooms.

2.3 Social Profile of Trichy

Trichy is one of the biggest industrial city of Tamil Nadu state. The population of

Trichy district is about 22,00,000 according to the data available for 1991 census.

Out of which 11,08,016 are male population and female population 10,88,457.

There are about 145 large scale industries and 802 small industries are working in

the outskirts of Trichy. Bharat Heavy Electricals Ltd, a successfully run popular

public sector large scale industry is situated in Trichy. Trichy is well connected with

other cities by train routes and flight routes. Airport is situated about 3 km from the

city. Direct flight to Columbo, Sri Lanka is available. The river Cauvery flows through

the city. Besides Trichy is a famous tourist centre of Temples viz Srirangam

Ranganathar Temple, Samayapuram Mariamman Temple and Tiruvanikkaval

Temple.

2.4 Woraiyur Cotton Saree

The main product of the cluster is Woraiyur Cotton saree. About 70% of the cluster

production is sarees only. Finer cotton counts 60s, 80s, 100s, 120s, 2/120s are

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being used to make these varieties. The cotton yarn is bought from Coimbatore

area mills through NHDC. The approved dyer for Co-operative Societies operate

from Jeyankondam situated 95 km from Trichy. Only few small dyers are working in

Trichy Woraiyur area. The dyeing is also carried out in Coimbatore, Salem,

Tiruchengode areas for export quality voiles. The quality of particulars of the saree

and other varieties is as below:-

S.No. Variety Warp Weft EPI / PPI Width Length

1 Saree 100s 100s 80/76-80 47-50” 6-9 Yds

2 Saree 80s 100s 80/76-80 47-50” 6-9 Yds

3 Saree 80s 80s 80/76-80 47-50” 6-9 Yds

4 Saree 100s 2/120s M 80/72-76 47-50” 6-9 Yds

5 Saree 60s 60s 72/64-68 47-50” 6-9 Yds

6 Voile fab. 80s 80s 80/68-76 46-48” P Length

7 Dhoti 100s 100s 88/76-80 50” 4 yds

8 Dhoti 80s 80s 88/76-80 50” 4 yds

9 Uppers 80s 80s 80/76-80 36” 2 yds

10 Uppers 100s 100s 80/76-80 36” 2 yds

3.0 CORE CLUSTER ACTORS AND INSTITUTIONS

3.1 Core Cluster actors

The core cluster actors are weavers of both cooperative and private, Handloom

Weavers Co-operative Societies, Master weavers, Merchant Manufacturer / Traders,

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Co-optex, Textile Showrooms, Dyers, NHDC, Yarn Dealers, Cooperative Banks,

Integrated Cooperative Development Organisation.

3.2 Office of the Asst.Director of Handlooms & Textiles

The Weavers Co-operative societies come under the Administrative Control of The

Asst. Director, Handlooms & Textiles, Govt. of Tamilnadu. Since no elected board is

functioning in any of the society, the officials from Asst.Director of Handlooms &

Textiles function as Special Officers and control the societies in day-to-day

activities. Welfare and developmental schemes of Central & State Govt. are also

implemented and monitored by this office. NID has been entrusted to develop new

designs for Woraiyur sarees.

3.3 Financial Institutions

3.3.1 The Trichy Dist. Co-operative Bank

The Trichy Dist. Co-operative Bank offers credit facility to the Co-operative societies

including their working capital needs. For societies, the cash credit sanctioned for

the year 2005-06 has been Rs.417 lakhs. Out of which Rs.383 lakhs availed. Since

about 50% of the societies are working under loss, there is no credit facility

extended to these societies.

3.3.2 The Commercial Banks

The commercial Banks like Lakshmi Vilas Bank offers loans to women handlooms

SHGs in Manamedu sub cluster. Apart from this, there is no evidence of banks

offering loans to the handloom industry.

3.3.3 Integrated Co-operative Development Project

The Integrated Co-operative Development Project is a programme under National

Co-operative Development Corporation (NCDC). They identify co-operative societies

of all sectors and provide working capital to the viable selected societies. Some of

the loss making handloom co-operative societies in Trichy cluster was also given

working capital under this project.

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3.4 Weavers’ Service Centre

The Weavers’ Service Centres (WSC) impart training to weavers to upgrade their

skill and increase productivity. They play a vital role in conducting research and

development evolving new designs and reviving traditional designs. The WSCs are

functioning under the Office of the Development Commissioner for Handlooms, New

Delhi. The WSCs primarily render extension services, which involve transfer of

design inputs, skills and technology evolved to the weavers at their cottages.

3.5 Bharathidasan Institute of Management (BIM)

The BIM is a reputed Management Institution in Trichy, offers MBA Course

to students. The resources of the Institute may be used for training needs of the

handloom industry personnel in management aspects.

3.6 District Rural Development Agency (DRDA)

The DRDA is a State Government Body working and implementing schemes for the

rural development. There is no specific scheme for handloom weavers under DRDA.

However, they work with SHGs (Self Help Groups) of women and men directly and

through NGOs.

3.7 Self Help Groups ( SHGs)

There are about 6 SHGs identified in the cluster engaged in Handloom weaving.

They have obtained loan from the local private bank, produced own handloom

products and participated in the Exhibition for marketing their products.

3.8 Trichy Zilla Handloom Textile Producers Association

Associations play an important role in the development and sustainability of the

industrial clusters. Trichy handloom cluster also has many associations in the

business. But none of the associations are actively involved in the development of

the business now. Woraiyur handloom merchant manufacturers are having an

association in the name of Trichy Zilla Handloom Textile Producers Association. It is

a registered association with a membership base of about 50 members. It was

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learnt from them that more than 50 % of their members have already left the

handloom saree business due to competition from powerlooms and the declining

market for handloom sarees. The association runs a marriage hall. They organize

meetings in every six months to discuss the issues of importance. They also

distribute free school books and uniform cloth to the poor and needy students. Now

a days they discuss the handloom business very rarely. Their last meeting took

place two years before when the cenvat tax was imposed on cotton yarn.

3.9 The Manamedu Warping Association

The warping is a sub process before weaving. There were about 400 warpers were

working before 5 years. But now there are only 100 throughout the Trichy district.

The Manamedu warpers have an association. It is not a registered association. The

warpers in Manamedu area assemble on the new moon day, discuss any issue

related to their warping and do the chit fund activity.

3.10 The Manamedu Sizing Association

The sizing people have an association in Manamedu. It is also not a registered

association. These people meet on every full moon day and discuss issues of

importance and run the chit fund activity. They donate Rs. 1000/- when a member

dies. These people help the handloom industry, but a neglected lot.

4.0 ANALYSIS OF BUSINESS OPERATIONS 4.1 Cotton Yarn Supplier

The raw material for the handloom industry is cotton yarn. The cotton yarn is

supplied to both cooperative and private handloom weavers through NHDC and

local yarn dealers. The raw material is supplied from Coimbatore and Rajapalayam.

The cotton yarn counts of 80s, 60s, 100s and 120s are being used for weaving

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sarees, dhotis, and export voile fabrics. There is no yarn dealers presently

operating in Trichy. A yarn dealer M/s. K.R.Velayudha Mudaliar Company,

Jeyankondam is the only supplier of cotton yarn to the master weavers of this

region. There were many yarn dealers operating from Trichy have been closed as

the market for the sarees reducing continuously.

4.2 Dyeing

The dyeing activity is carried out only by few small dyers in Trichy. There is no

approved dyer in Trichy. The cotton yarn for societies being dyed at Jeyankondam

situated 95 km from Trichy. For private master weavers and merchant

manufacturers, the dyeing of cotton yarn is carried out at Trichy by about 5 dyers.

Mostly, Napthol and Vat dyes are used for dyeing. Direct dyes with some after

treatment are also followed to some extent. The dyeing charges per bundle of 2.25

kg ranges from Rs. 120/- to Rs. 250/-.

4.3 Warping

Warping is a process to convert the cotton yarn in hank form / cone form to ball /

sheet ball form suitable for sizing and weaving on handlooms. There were about

400 warpers working all over Trichy Dist. five years back. At present, their number

reduced to about 100. The warping charges are made on No. of knots basis.

Rs.2.40 per knot is charged as warping charges. 50% of this i.e Rs.1.20 goes for

winding bobbins. The winding is a household activity carried out by ladies in a no. of

houses in the same area. A warper gets Rs.15/- per warp as wages. The warping

frame can accommodate 2 ½ warp per cycle. 3 cycles can be done per day.

Therefore the warper gets Rs.45/- for a full day.

4.4 Street Warp Sizing

Sizing is a process to add strength to the cotton single yarn warp by applying size,

paste uniformly throughout the length and breadth of warp. The size solution

locally called Kanji (The liquid extract of boiled rice) is collected by old ladies in the

nearby households for meager amount of Re.1/- The person who collects the Kanji

gets Rs.5/- to Rs.20/- depending upon the quantity for 1 to 4 warps. The length of

the warp for sizing is around 35 yards. The accessories used for sizing process are

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locally called pillu (Brush), Dhambu- a frame to hold both sides of warp, Kayiru – a

rope used to tie the frame to the ground, Kolu –wooden lease rod. The sizing

charges works out to be Rs.4.30 per knot. For each warp, about 16 knots are used.

So the cost of sizing works out to be Rs.69/- per warp. About 5 to 7 people are

required to perform the sizing process. 4 to 6 warps can be sized in a day. So the

wages of an individual sizer works out to be Rs.40/- to Rs.50/- per day.

Sizing Ingredients & wages per warp

4.5 Weaving

Weaving is a process of interlacement of two series of threads warp and weft to

form fabric. Cotton yarn is used for weaving the sarees, export pieces and dhotis.

There are few silk weavers also noticed in the cluster. The wages per day for the

weaving activity for a weaver ranges from Rs. 50 to 75. As more than 50 % of the

weavers are of above 50 years age the productivity per weaver and earning also

slow down.

4.6 Handloom

The process of weaving is done with the help of the loom. As it is operated by hand

by the weaver, it is called Handloom. The accessories used in the handloom are

sley, shuttle, picker, warp beam, cloth beam, reed, healds, lease wooden rods, pirn.

Raised Pit Looms are used to weave the sarees, dhotis and export voile fabrics in

and around the Trichy Handloom Cluster.

4.7 Weavers

S No Ingredients Expenses Rs

1 Charges for 5 warps 345.00

2 Rice extract 5.00

3 Coconut oil 25 ml 12.50

4 Raw rice flour 20.00

5 Wages @ 10 for 5 250.00

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Weavers have own looms and operate from their households. There are two

categories of weavers viz., weavers under cooperative fold and weavers under

master weavers or private weavers.

4.7.1 Weavers under Cooperative fold

The cooperative society weavers receive the sized warp from cooperative societies,

weave the sarees or dhotis or export pieces and return back the said products to

societies for marketing to Merchant Manufacturer, Co-optex and direct sales to

consumers. They receive wages for this activity. The continuous employment is not

ensured to the weavers of the cooperative societies. The cooperative weaver gets

20 % more wages compared to the private weavers. The same cooperative weaver

when weaves for a master weaver accepts the 20 % less wages.

4.7.2 Private Weavers

The private weavers mostly receive the dyed yarn from master weavers and get it

warped and sized outside; weave the sarees, dhotis and export pieces and return

back the woven products to the master weavers / merchant manufacturer. The

weavers also receive the warped and sized ball warps for weaving directly from

master weavers. The private weavers get nearly 20 % less wages compared to the

cooperative weavers.

4.8 Co-operative Societies

There are about 27 Handloom Cooperative societies operating in Trichy District with

about 1200 working looms. Their consumption of cotton yarn per month works out

to be 15 Bales of 90 kg each. The yarn is supplied mostly from Coimbatore cotton

spinning mills through NHDC. The cotton yarn is dyed according to the requirement

of colours with the approved dyers. Then it is issued to the warping and sizing

people before issued to the weaver members.

4.9 Master Weavers

The master weavers of about 50 Nos. operate in handloom area from all over Trichy

District. They procure cotton yarn from dealers, merchant manufacturers and dyers

and supply to warpers and sizers then to weavers and get the woven sarees, dhotis,

export pieces and gives back to merchant manufacturers/ exporters.

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4.10 Merchant Manufacturers / Traders

There are about 25 merchant manufacturers operating in the Trichy region. Their

yarn requirements are met through the yarn dealer of Jayankondam situated about

95 km from Trichy. They dye the yarn according to the requirements of the

market. They supply the dyed yarn to warpers and sizers before issued to the

individual weavers and small master weavers of different areas in Trichy. The

weavers weave the sarees and returns back to them. There is a wage difference of

about Rs.100/- between private and cooperative societies. They supply the

finished sarees to throughout Tamilnadu, Andhra Pradesh and Karnataka.

Presently, their market size reduced about 75% in the past 10 years due to

competition from powerloom sector. There is an association of Trichy Zilla

Handloom Textile manufacturers with a membership of about 50. Presently about

10 merchant manufacturers are actively involved in Handloom saree business.

4.11 Co-optex

Co-optex is an Apex Handloom fabrics marketing organization of Tamilnadu run by

The Tamilnadu Handloom Weavers Cooperative Societies Ltd., which sells Rs.400

crores worth handloom products in a year through their showrooms all over India.

The Co-optex procures handloom products from co-operative societies throughout

Tamilnadu. They place production plan in advance to the societies and monitor

their production quality control and procure and supply to showrooms throughout

India. The co-optex also runs yarn godowns in other parts of Tamilnadu. The yarn

from co-operative spinning mills are being sold to co-operative societies through

their yarn sales depot. As the co-operative spinning mills do not produce finer

count yarn, and the Trichy consumes only the finer counts of yarn, Co-optex does

not have yarn sales depot in Trichy.

4.12 Textile Showrooms

Besides the sarees woven in and around Trichy area are also sold through popular

retail outlets like Thaila Silks, The Chennai Silks, Nalli Silks and Sharatha Silk textile

showrooms. The master weavers take orders from these showrooms and get it

woven by weavers and supply back to the showrooms.

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4.13 Role of Women and family members

The women in the cluster play an important role in weaving the sarees, voiles,

dhotis and uppers. Without their assistance, the weaving activity is not possible.

For weaving, continuous flow of weft is necessary. The winding of weft on pirns is

done by household ladies. The winding of bobbins for warping process, is also

carried out by the women folk. For the sizing process, the size paste is collected

from households by old ladies.

Warping Process in Progress Sizing Process in Progress

5.0 INTER FIRM INDUSTRIAL ORGANISATION

5.1 Handloom Saree Production Process Map

Raw MaterialCotton Yarn

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5.2 Cluster Map

Warping

Dyeing

Winding

Sizing

Winding

Pirn winding

Warp Joining

Warp Gaiting

Warp Preparation Weft Preparation

Weaving

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Before Intervention After Intervention

WeaverCoop

MasterWeaver

Society

Merchant Mfr

Coop Tex

Warping

WSC

AD officeTrichy

NHDC

Weaver Private

Sizing

Textile Show

Rooms

BIM

Handloom Assn

Design Institutes

Warping Assn Sizing

Assn

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6.0 SWOT ANALYSIS THE CLUSTER

6.1 Strength

6.1.1 Finance

Availability of Credit facilities from Co-operative Banks

Availability of banks for private sector

6.1.2 Production

Traditional Weaving skill

Availability of Raw material

6.1.3Marketing

Woraiyur Cotton sarees have very good market

Private master weavers have good market linkages

6.2 Weakness

6.2.1Finance

Working capital not available to loss making societies

No proper working capital management

Lack of professional management

6.2.2Production

Feeling of disgust on weaving

Wages remain stagnant in spite of inflation

Inconsistent supply of raw material to weavers

Weavers are aged. Young generation not encouraged

Lack of Innovation in designs

Reducing Production every year

Absence of yarn dealer and approved dyer in Trichy

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6.2.3Marketing

Societies have Weak Marketing linkages

Selling only on rebate ( cooperative )

Lack of own showrooms

No dynamic marketing activity

6.3 Opportunity

6.3.1 Finance

To avail the schemes of new generation banks

6.3.2 Production

To go for new value added products

To go for new innovations

6.3.3 Marketing

To go for direct export

To explore newer markets

6.4 Threats

6.4.1 Finance

No support for Handloom Industry from FIs

6.4.2 Production

Stiff competition from power looms

Ineffective enforcement of handloom reservation act

6.4.3 Marketing

Growing misuse of rebate scheme

Emerging new marketing with Big Retail showrooms

7.0 VISION OF THE CLUSTER

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8.0

PROBLEMS AND GAPS

8.1 The mind set of the weaving community is highly disturbed. Their very

survival is at stake.

8.2 Due to tough competition from powerlooms, the handloom sarees and dhotis

market has reduced to 1/4th in the last 5 years. Similarly, the no. of looms,

weavers, master weavers, merchant manufacturers, traders has also been

reduced.

8.3 The traditional method of manufacturing is only followed despite ever

changing market.

THE HANDLOOM WEAVERS IN TRICHY CLUSTER WILL

BECOME DYNAMIC AND SELF SUFFICIENT

TO PRODUCE MARKET - DEMAND VARIETIES

BY CONTINUOSLY FOCUSSING ON QUALITY

AND INNOVATIVE DESIGNS FOR THE

NICHE HIGHER END SEGMENT

OF THE SAREE MARKET

BY 2010.

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8.4 The aged weavers are not ready to change the varieties to earn more wages.

8.5 No proper linkages with designers or textile institutions.

8.6 There is no innovation in the handloom sarees and so the market is shrinking

every year.

8.7 Lack of professional management in the working of handloom co-operative

societies.

8.8 Absence of designer for the societies with technical skills

8.9 Lack of approved dyers in Trichy. Waste of time due to transportation to

approved dyer situated 95 km away.

8.10 The system of allocation of yarn by DH office through AD office and NHDC

makes inordinate delay which affects their operation.

8.11 More than 50% of the cotton yarn meant for distribution to the handloom

society members are diverted to the local private weavers.

8.12 Improper linkages with raw material supply and marketing results in low

quality & defective goods and unmarketable products.

9.0 IMPLEMENTATION STRATEGY

9.1 Awareness Programme

More awareness programmes will be organized amongst the sub-cluster weavers,

master weavers, and society managers, self help groups separately to bring

confidence and commitment for the successful implementation of the programme,

within a period of six months.

9.2 Project Launch Programme

The project Launch Programme will be organized inviting all the stake holders viz.,

weavers, master weavers, merchant manufacturers, traders, Govt. and Non-Govt.

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organizations, self help groups involved in handloom weaving, training institutions,

textile colleges, students, yarn dealers, dyers etc.,

9.3 Exposure visits to various clusters

Exposure visits to successful clusters will be organized among the dynamic

weavers, master weavers, and other stake holders to study the Good Manufacturing

Practices (GMP) as a trust building activity.

9.4 Training Programmes

Training Programmes on personality development, skill development, designing,

management, products diversifications will be identified and organized in sub-

clusters.

9.5 Establishment of Raw material Bank

A raw material bank will be established at Trichy where all kinds of inputs for

handloom weaving made available for effective and timely distribution to weavers.

9.6 Product & Design Developments

New innovative concepts, New Products will be developed using new fibres in line

with the existing cluster products with the help of students from textile institutions.

9.7 Formation of Consortiums

Consortiums of co-operative societies, master weavers, dyers will be formed to

reduce the cost of inputs and improve the collective efficiency.

9.8 Establishment of market linkages

The Trichy Handloom Cluster will be linked with proper marketing channels of

Textile Retail showrooms all over India.

9.9 Participation in Exhibitions and Buyer - Seller Meets

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The consortiums will be assisted in marketing their produce in the national and

international exhibitions and Buyer - Seller Meets.

9.10 Formation of a Cluster Development Co-ordination Committee

A District level Cluster Development Co-ordination Committee (CDCC) amongst the

stakeholders will be established for monthly review of the functioning of all the

cluster related activities.

9.11 Establishment of Common Facility Centre

A Common Facility Centre consisting of a modern dyeing unit, a testing laboratory,

a training hall will be established to serve the handloom industry needs.

9.12 Establishment of Web-portal

A Web-portal containing customized products development information and on-line

sales through internet will be established.

9.13 Exposing cluster to Exporters & Buyers

The Export quality voile fabrics produced in Manamedu will be exposed to foreign

buyers for direct export

9.14 Establishment of Brand

A Brand name for Trichy Handloom Cluster products will be established and

popularized through Fashion Shows in important cities.