Themes: Corporate Restructuring
Period : 1985-2003
Organization : Minister for Small Scale Industries
Pub Date : 2003
Countries : India
Industry : SSI
- Vasundhara Raje, Minister for Small Scale Industries, 2001.
- Ritu Kumar, Fashion Designer.
- B.S.Nagesh, CEO, Shoppers' Stop.
Khadi1, which symbolized self reliance and emancipation during the freedom struggle in India2 has lost its sheen over the years. And there are several reasons for the same. Post 1947, India opted for state led large scale industrialization. |
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However, there were a few problems. According to designers, the production of Khadi was inconsistent and the cloth was prone to shrinkage and fabric stretch. Besides, fabric colours in khadi were also limited. Red tapism and bureaucracy prevalent in the Indian system, further hampered the growth of the Khadi sector. Inspite of having a wide distribution network, there were problems, especially middleman. Corruption was rampant. There were many bogus Khadi units operating in the country, which made it extremely difficult to claim rebates from the Government of India (GoI).
KVIC received huge financial assistance from the GoI in the form of subsidies and rebates. In May 2000, the Ministry of Small Scale Industries, announced a special package of Rs.12.16 billion to the industry. In order to face the challenges of globalization and strengthen its position in the market, KVIC launched two separate brands, Sarvodaya and Khadi in August 2001. Sarvodaya comprised consumer goods like incense sticks, spices, honey, and pickles.
1] Khadi is a cloth produced by interlacement of handspun yarn. The soft twist imparted by the hand gives the yarn 'hairiness' which gives maximum comfort to the wearer. The loom used in weaving of Khadi interlaces the threads in a manner that allows maximum air to permeate to body and soothes the body. Khadi is acknowledged to be one of the coolest and the most comfortable fabric.
2] Instead of exporting raw cotton and importing fine Manchester-made cloth, freedom fighters in India led by Mahatma Gandhi wanted all Indians to spin their own cloth and boycott imports to weaken the British rule in India and make India self-reliant.
3] Khadi Bhandars are exclusive outlets opened by the KVIC to retail all its products.