Swot Analysis

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Handicrafts Industry In India: SWOT Analysis - Presentation Transcript

1. Handicrafts Industry in India An Integral Part of Indian Economy.. A SWOT

Analysis Resource : www.india-crafts.com By: Priyanshu Shrivastava

2. Strengths of Indian Handicrafts Industry Large, diversified and potential market.

There is large product variety and range is available because of diversified

culture. It has strong, diversified and supportive retail infrastructure. Diversified

product range that service different market. Cheap labor rates that result to

competitive price. Need low capital investment. There is flexible production

flexibility. Low barriers of new entry.

3. Critical Success Factors of Indian Handicrafts Industry Easy creation and

development of production centers. There is no need for macro-investment.

Industry provides potential sources of employment. Products are high value

added, and handicrafts have various applications. It is the potential source of

foreign revenue because of higher export.

4. Weaknesses of Indian Handicrafts Industry Lack of infrastructure and

communication facilities. Unawareness about international requirements and

market. Lack of co-ordination between government bodies and private players.

Inadequate information of new technology. Inadequate information of current

market trends. Less interest of young people in craft industry. Lack of skilled

labor. Still confined to rural areas and small cities and untapped market. Lack of

promotion of products.

5. Opportunities in Indian Handicrafts Industry Rising demand for handicraft

products in developed countries such as USA, Canada, Britain, France, Germany,

Italy etc. Developing fashion industry requires handicrafts products.


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Development of sectors like Retail, Real Estate that offers great requirements of

handicrafts products. Development of domestic and international tourism sector.

e-Commerce and Internet are emerged as promissory distribution channels to

market and sell the craft products.

6. Threats for Indian Handicrafts Industry Competition in domestic market.

Balance between high demand and supply. Quality products produced by

competing countries like China, South Africa. Better Trade terms offered by

competing countries. Increased and better technological support and R&D facility

in competing countries.

7. Get more comprehensive information on Arts, Handicrafts and Paintings of India

from ; www.india-crafts.com www.ethnicpaintings.com Buy quality

Handicrafts from India through Our Online Shopping Store;

www.indiahandicraftstore.comwww.craftsinindia.com

Indian Handicrafts Industry

India is one of the important suppliers of handicrafts to the world market. The

Indian handicrafts industry is highly labour intensive cottage based industry and

decentralized, being spread all over the country in rural and urban areas.

Numerous artisans are engaged in crafts work on part-time basis. The industry

provides employment to over six million artisans (including those in carpet trade),

which include a large number of women and people belonging to the weaker

sections of the society.


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In addition to the high potential for employment, the sector is economically

important from the point of low capital investment, high ratio of value addition,

and high potential for export and foreign exchange earnings for the country. The

export earnings from Indian handicrafts industry for the period 1998-99 amounted

to US$ 1.2 billion.

Although exports of handicrafts appear to be sizeable, Indias share in world

imports is miniscule. It is a sector that is still not completely explored from the

point of view of hidden potential areas. India, a country with 26 states and 18

languages and more than 1500 dialects offers an enormous range of handicrafts

from each of the states. Major centres in Uttar Pradesh are Moradabad also known

as the "Peetalnagari" (City of Brass), Saharanpur for its wooden articles, Ferozabad

for Glass. The North Western state of Rajasthan has to offer the famous Jaipuri

quilts, Bagru and Sanganer printed textiles and wooden and wrought iron furniture

from Jodhpur. The coastal state of Gujarat comes with embroidered articles from

Kutch. Narsapur in Andhra Pradesh is famous for its Lace and Lace goods. But this

is only a small part of the total product range. India offers much more.

Handicrafts are classified into two categories:

1.Articles of everyday use

2.Decorative items


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The craftsmen use different media to express their originality. The diversity of the

handicrafts is expressed on textiles, metalsprecious and semi-precious, wood,

precious and semi-precious stones, ceramic and glass.

Textile based handicrafts:

Hand printed textiles including block and screen printing, batik, kalamkari (hand

printing by pen) and bandhani(tie and die) are used in products ranging from bed-

covers to sheets, dress material to upholstery and tapestry. The famous

embroidered articles of silk and cotton, often embellished with mirrors, shells,

beads, and metallic pieces are also found in India. Embroidery is done too on

leather, felt and velvet etc. This segment of the industry accounts for almost half a

million strong employment in addition to a large number of designers, block

makers, weavers and packers involved in the trade.

Clay, Metal and Jewellery:

Brass, copper, bronze, bell metal are used for a variety of wares and in a variety of

finishes. Scintillating ornaments are available in a wide range of patterns, styles

and compositions. Made from precious metals, base metals, precious and semi-

precious stones; these ornaments have traditional as well as modern styles.

Woodwork:

Wooden articles in India range from the ornately carved to the absolutely simple.

One can find toys, furniture, decorative articles, etc. bearing the art and


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individuality of the craftsman. India is known particularly for its lacquered wood

articles.

Stone Craft:

The intricately carved stoneware made of marble, alabaster or soapstone, etc.,

inlaid with semiprecious stones carry on the heritage of Indian stone crafts.

Glass and Ceramic:

Glass and ceramic products are a fast upcoming segment in the handicrafts fromIndia. The age-old production process of mouth-blowing the glass instills a

nostalgic feeling. The varied shapes of ceramic and glass in a number of colours,

would appeal to Western aesthetics while retaining the Indian touch.

Craft concentration Areas:

A wide range of handicrafts are produced all over Indian artmetalware / EPNS

ware, wood carvings and other wooden artwares, imitation jewellery, handprinted

textiles, shawls as artwares, embroidered goods, lace and lace goods, toys, dolls,

crafts made of leather, lacquerware, marble crafts etc. Although it is difficult to

limit a specific place for the particular craft, the following places are listed for their

particular crafts.

Artmetalware : Moradabad, Sambhal, Aligarh, Jodhpur,

Jaipur, Delhi, Rewari, Thanjavur, Madras,

Mandap, Beedar, Kerala & Jagadhari,


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Jaselmer

Wooden Artwares : Saharanpur, Nagina, Hoshiarpor, Srinagar,Amritsar, Jaipur, Jodhpur, Jagdalpur,

Bangalore, Mysore, Chennapatna, Madras,

Kerala & Behrampur (WB)

Handprinted Textiles

& Scarves

: Amroha, Jodhpur, Jaipur, Farrukhabad,

Sagru & Sanganer

Embroidered goods : Kutch (Gujarat), Jaisaimer, Baroda,

Lucknow, Jodhpur, Agra, Amritsar, Kullu,

Dharmshala / Chamba & Srinagar

Marble & Soft Stone

Crafts

: Agra, Madras, Baster, Jodhpur

Papier Mache Crafts : Kashmir, Jaipur

Terracotta : Agra, Madras, Baster, Jodhpur


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Zari & Zari Goods : Rajasthan, Madras, Baster

Imitation Jewellery: : Delhi, Moradabad, Sambhal, Jaipur,

Kohima (Tribal)

Artistic Leather

Goods

: lndore, Kolhapur, Shanti Niketan (WB)

Selected crafts pockets for achieving export goal:

Although each crafts pockets has its particular problems, a few selected craft

pockets are identified based on their past performance for immediate remedial

attention to stimulate a quantum in exports of handicrafts in the coming years.

Moradabad(UP) : For Artmetalwares and imitation jewellery

Saharanpur (UP) : For Wooden handicrafts & Wrought iron

handicrafts

Jodhpur (Raj.) : For Wooden, Wrought Iron and Sea Shell

handicrafts


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Narsapur (A.P.) : For Lace and Lace goods

COUNTRY-WISE EXPORTS OF HANDICRAFTS

The major buyers for handicrafts (other than carpets) are as under:

Art Metalwares : U.S.A., Germany, U.K. & Italy

Wood Wares : U.S.A., U.K., Germany & France

Hand Printed &

Textiles & Scarves

: U.S.A., U.K. , Germany & Canada

Embroidered &

Crochetted Goods

: U.S.A., Saudi Arabia, U.K., Germany

Shawls as Artwares : Saudi Arabia, U.S.A. Japan & U.K

Zari & Zari goods : U.K. U.S.A., Japan & Saudi Arabia


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Imitation Jewellery : U.S.A., U.K., Saudi Arabia & Germany

Miscellaneous

Handicrafts

: U.S.A., Germany, U.K. & France

Australia2%

Canada3%France

5%Germany

11%

Italy4%

Japan4%

Netherlands3%

Saudi Arabia2%

Switzerland1%

U.S.A.32%

U.K.11%

Others22%

Major Destinations for Indian Handicrafts(% share in 1998-99)


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Value Adding Chain in Handicrafts

Identification of market opportunities

Prototype design and development / adaption and refinement

Test marketing

Upgrading equipping facilities

Securing inputs

Entrepreneurial hiring, training, managing

Production, quality control and packaging


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Costing and pricing

Physical distribution

Export market development

In the changing world scenario, craft products exported to various countries form a

part of lifestyle products in international market. The impact is due to the

changing consumer taste and trends. In view of this it is high time that the Indian

handicraft industry went into the details of changing designs, patterns, product

development, requisite change in production facilities for a variety of materials,

production techniques, related expertise to achieve a leadership position in the fast

growing competitiveness with other countries.

The 6 million craft persons who are the backbone of Indian Handicraft Industry as

provided with inherent skill, technique, traditional craftsmanship but that is quite

sufficient for primary platform. However, in changing world market these craft

persons need an institutional support, at their places i.e. craft pockets for value

addition and for the edge with other competitors like China, Korea, Thailand etc.


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The German handicrafts and Giftware Market

With over 82 million inhabitants, Germany is the largest market for giftware and

handicrafts items in Europe. A member of and situated within the European

Union, Germany is supplied with giftware and handicrafts from Germany as well

as the surrounding European countries such as France, Italy, Switzerland and the

United Kingdom and from all other parts of the world: Russia, Latin America,

Africa and Asia.

The size of the total German giftware and handicrafts market varies according to

the definition of giftware and handicrafts. With its present size around DM 29.5

69

151

205

466

164 171 117

108 57

1440

453

954

79

177 235

536

190 195135 122

68

1642

539

1139

0

200

400

600

800

1000

1200

1400

1600

1800

Rs.

inCrores

Countrywise Export of Handicrafts

1997-98

1998-99


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billion it corresponds to a broad definition of giftware and handicrafts that includes

the following items: home furnishings, artmetalware, table accessories, Christmas

decoration, woodware and furniture, imitation jewellers, artificial flowers/plants,

scents/cosmetics, sweets, toys/computer games, books, discs/videos,

watches/jewellery, certain apparel/textile items and others. The German giftware

and handicrafts market grew from DM 29.1 billion in 1998 to DM 29.5 billion in

1999, but experienced a slight decline in the first quarter of 2000.

The substantial supply of giftware and handicrafts has transformed the German

giftware and handicrafts market into a fiercely price-competitive market place.

Nevertheless, innovative and new to market giftware and handicrafts items place

still have good market prospects. It is essential for the German giftware and

handicrafts marketers to find new products to stay competitive. Although German

consumers may be willing to pay a high price for exclusive items they are very

price conscious and want value for money. Among traditional gift items, candles,

festive items, including Christmas decoration, exclusive gift boxes and gift-wrap,

ribbons, nostalgic calendars and all types of scented items have best prospects. The

German market shows a strong demand for low-priced candles. Thus imports from

Poland and China have increased substantially. The average growth for the overall

giftware and handicrafts is estimated at 1-2 percent over 1999-2000.

Competitive Situation


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German giftware and handicrafts consumption is growing more or less in line with

the relatively slow growth rate of income during the last years. Thus, expectations

for additional growth are not very high. Annual growth rates of between 1.5-2

percent are forecast for the next few years for the overall giftware and handicrafts

market. In general the market shows good business opportunities if prices and

quality are competitive and delivery schedules are fulfilled.

Apart from its own producers, Germany is supplied by giftware and handicrafts

from nearly all of the European countries. German firms often import specific

product groups from a particular country. Major suppliers of pottery are, forexample, Spain and Portugal; fine exclusive stationery comes from Italy, France

and Switzerland; candlesfrom Poland, China and Portugal; dried flowersfrom the

Netherlands etc.

Fierce price competition in Germany is intensified by the increasing quantity of

Chinese and Asian made products on the market. For India this situation coupled

with the relatively strong Indian rupee which means that firms proving to be most

successful in the recent past have offered niche market giftware and handicrafts,

i.e., exclusive to Indian handicrafts items or new-to-market products.

A few well-established German manufacturers of giftware and handicrafts items

are:

Koziol GmbH, Erbach Krebs-Glas-Lauscha GmbH,

Ernstthal


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Barti GmbH, Garching Margarete Steiff GmbH, Giengen

Duni GmbH & Co. KG, Bramsche WMF AG, Geislingen

Rastal, Hoehr-Grenzhausen Rosenthal AG, Seib

Fartak, Lahr W. Goebel Porzellanfabrik,

Roedental

GIES Kerzen, Glinde Walther-Glas GmbH, Bad Driburg

Jet Papier GmbH, Bernau

Sales volume of specific sub-sectors (estimates):

Some estimates of individual giftware and handicrafts subsector volume sales are

provided as follows:

Seasonal: Market insiders estimate the total volume of the seasonal items market,

including Christmas, Easter, Valentines Day and the German counterpart of

Thanksgiving, at DM 7.7 billion. In 1997, about DM 3 billion were spent alone forChristmas decoration, Christmas floristic items and Christmas trees only.

Christmas items are usually imported from China, Taiwan, Thailand, Philippines

and India. However, Indian Christmas decorations as candle stands or Christmas


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tree hangings and soft toys find a ready market in Germany if they are moderately

priced.

Hobby and art supplies: The present market volume of hobby and art supplies in

Germany is estimated at about DM 3 billion, while the total European market

should amount to DM 12 billion. Insiders believe that this specific market segment

still offers some potential for new products. A recent survey shows that apart from

their school days, most of the Germans who do regular DIY or hobby work are

between 60 and 69 years (10.8 percent of the German adults) old. With the fastageing of the German population a stronger demand for hobby and crafts is likely.

Incentive items: From 1992 to 1998, the total German market for incentives

increased from nearly DM 3 billion to DM 6 billion.

Toys: In 1998, annual sales of licensing products amounted to about US$ 4.2

billion in Germany. Also in 1998, the toys market volume expanded to DM 6

billion. Total annual sales for computer games and learning games alone, increased

to DM 2 billion in 1998 compared to the pre-year level of DM 1.7 billion.

Market Access


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EU member states and Asian countries, China and India in particular, are major

suppliers of giftware and handicrafts to the German market. Indian firms making a

first approach to the German market are advised to have comprehensive product

literature and data sheets professionally translated into German. Although English

is widely understood, a well-prepared translation gives an important marketing

edge, particularly in the initial presentation. Indian firms should preferably appoint

an agent or distributor who can maintain a stock sufficient to answer short-notice

orders.

Customs Duties

Customs duties vary according to material and product. Though duties are high for

a few items, i.e., dried flowers, potpourri (16.7-20 percent), T-shirts (12.0-13.2)

and hand- woven, woollen blankets (13.4 percent), the majority of customs duty

rates falls in the range of 5-8 percent. For example:

Customs Duties (in percent)

Ceramics : 4.1 - 7.5

Toys : 5.6 - 6.3

Stationery : 8.4

Plush animals : 6.0


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Quilts/blankets : 7.5

Candles : 2.8

Silver jewellery : 2.5

In addition, there is a 16 percent sales tax, which is eventually passed on to the

consumer in form of the value-added tax (VAT). But the VAT has to be paid when

entering the German market by the exporter/German importer.

Items that originate from certain animal species, i.e., snakeskin or hides of some

animal, it must be ensured that the export of these products complies with the

Convention on Endangered Species (CITES). Regarding sample orders, exporters

should be aware that one sample with a maximum value of DM 50 each or, five

identical samples of one product group not exceeding a total value of DM 50, are

usually customs free.

Product Standards

In view of the wide field of products that could be considered as giftware and

handicrafts, it is difficult to name standards. Compliance with EU standards andregulations is strongly suggested. There are, however, only few product groups in

the giftware and handicrafts field that have to follow standards. It is essential that

CE-labelling be observed where required. The CE-mark (including conformity

statement and technical documentation) is mainly required for toys (88/378/EEC


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standard). While the quality regulations for candles are obligatory assuring a

certain level of quality, the toy regulation and the electronic standards have to be

observed because of safety considerations:

Major Distribution Channels

In Germany, giftware and handicrafts is distributed through five major channels:

Wholesalers

Importers/distributors

Commission agents/sales representatives

Department stores

Mail-order

Internet sales

Tele-shopping

The individual channels are described in detail in the following.

Wholesalers:

Besides offering wide range of goods to retailers for direct sales, this channel alsosupplies large quantities of individual articles. They are very particular in

maintaining consistency in the kind of products and their quality. One of the

distinguishing features of wholesalers is to provide distribution and storage

facilities. Specialised wholesalers deal in sales to retailers as well as to final


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consumers. They maintain high quality standards and but have a narrower and in-

depth range of arts and crafts.

Importers/distributors:

Most Indian giftware and handicrafts companies use importers/distributors to

market and sell their giftware and handicrafts lines. They buy and sell on their

own account. Thus, the companies take advantage of the distributor's expertise, his

sales force and his existing distribution channels. Distributors call on giftware and

handicrafts retailers, purchasing groups and supermarkets. The distributors' mark-

up varies depending on the giftware and handicrafts item, but at least 50 percent.While the mark-ups vary according to the distributor; they usually also depend on

the exclusivity of a product and on its competitiveness in the overall giftware and

handicrafts market.

Germany hosts more than 45,000 giftware and handicrafts retailers. Several

retailers import directly from the United States and sell to the German customer.

Usually these are small companies looking for items new to the market and

handling small orders only.

Commission agents:

Commission agents provide Indian companies with direct access to the German

market and direct control. Independent commercial agents are normally working

on a 15 percent commission and operate on a regional basis. They concentrate on

specialist retailers, purchasing groups and department stores. Commission agent

contracts are based on stringent EU and German regulations. An Indian firm

wishing to appoint an agent should make sure that such standard contracts meet its

expectations. In order to facilitate market entry efforts by the agents their initial


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commission is often a few percent higher than the "usual" commission. These

additional payments are to reimburse the agent for substantial advertising and any

special efforts facilitating the new product's market entry.

Department Stores:

Indian companies interested in establishing business contacts with major

department stores, mail-order houses and retailers may also choose the direct

approach. Department stores in particular, prefer to deal directly with

manufacturers. Their buyers are very specialized and only handle a limited range

of products. At some occasions department stores also buy through independentcommercial agents. Quite often they have their own buyers as well as a few agents

that usually work with them and who know their assortments. If a department

store decides to import a particular giftware and handicrafts item, it places bulk

rather than small orders.

Mail Order:

On an average, each German consumer buys products totaling to DM 500 each

year from mail-order houses. There are about 200 mail order companies in

Germany. In Europe, Germany is the largest mail order market, followed by Great

Britain and France. The total European market volume for mail order products is

estimated at approximately DM 90 billion. Of the 20 major mail order companies

in Europe, 12 have their headquarters located in Germany. Among them are the

world's largest mail order companies: Otto Versand in Hamburg and Quelle

Schickedanz AG & Co. in Fuerth. In addition, several German mail order

companies operate in other European countries, as well.


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Internet Sales:

Germany will become market leader among the EU countries with regard to sales

over the Internet by the year 2000. It is anticipated that by then German electronic

sales, which are estimated to reach a volume of DM 500 billion worldwide in

2000, become second in the worldwide ranking after the United States and before

Japan. A typical German Internet user and a major German mail-order publication

is between 20-39 years old, is highly educated and earns more money than the

average German consumer. This age group consists of about 4.5 million Germans.

Seventy percent of these consumers are male. Already today, the Internet is a

major sales channel for German mail-order houses.

Teleshopping:

QVC and HOT are the two tele-shopping channels in Germany. They operate all

over Germany and offer various types of giftware and handicrafts; jewellery,

fashion, health, beauty; household consumer goods; collectibles and home

accessories.

Birthday36%

Christmas17%

Visit to

friends/family10%

No SpecialOccasion9%

Easter7%

Thank You4%

Others17%

Occasions for which gift items are oftenpurchased


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SWOT Analysis of the Indian handicrafts industry

Opportunities

Rising appreciation for

handicrafts by consumers in

the developed countries

Widespread novelty seeking

Large discretionary income at

disposal of consumer from

developed countries

Strengths

Abundant and cheap labour

hence can compete on price

Low capital investment and

high ratio of value addition

Aesthetic and functional

qualities

Wrapped in mist of antiquity

Hand made and hence has

few competitors

Variety of products which

are unique

Exporters willing to handle

small orders

Increasing emphasis on

product development and

design upgradation

Threats

Decline in Indias share

due to:

Better quality product

produced b

competitors from


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Growth in search made by

retail chains in major

importing countries for

suitable products and reliable

suppliers. Opportune for

agencies to promote

marketing activities

Use of e-commerce in direct

marketing

Weaknesses

Inconsistent quality

Inadequate market study and

marketing strategy

Lack of adequateinfrastructure and

communication facilities

Capacity to handle limited

orders

Untimely delivery schedule

Unawareness of

international standards by

many players in the market

Europe, South Africa

South Asia, etc.

Better terms of trade by

competing countries

Consistent quality an

increasing focus o

R&D by competin

countries

Better packaging

Stricter internationastandards

REG.NO-10810337


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REG.NO-10810337

Handicrafts IntroductionHandicrafts are unique expressions and represent a culture, tradition and heritage of acountry. The Handicraft Industry is one of the important productive sector. Various attemptshave been made to define this broad and diversified industry. The following definition strives

to cover diversity and complexity of Handicraft Industry.Defining Handicrafts:Definition According to United Nations Educational, Scientific and CulturalOrganization/Information Technology Community (UNESCO/ITC) InternationalSymposiumon Crafts and the International Market: Trade and Customs Codification,Manila, Philippines, October 1997:Handicrafts can be defined as products which are produced either completely by hand orwiththe help of tools. Mechanical tools may be used as long as the direct manual contribution ofthe artisan remains the most substantial component of the finished product. Handicrafts aremade from raw materials and can be produced in unlimited numbers. Such products can be

utilitarian, aesthetic, artistic, creative, culturally attached, decorative, functional, traditional,religiously and socially symbolic and significant.Definition according to Govt. of India:Handicraft can be defined, which is made by hand; should have some artistic value; theymayor may not have functional utility.The Importance of Handicrafts: The Cultural Importance:Handicrafts play very important role in representing the culture and traditions of anycountry or region. Handicrafts are a substantial medium to preserve of rich traditionalart, heritage and culture, traditional skills and talents which are associated withpeoples lifestyle and history.

The Economic Importance:Handicrafts are hugely important in terms of economic development. They provideample opportunities for employment even with low capital investments and become aprominent medium for foreign earnings.Handicrafts:An OverviewIndia is a country of rich culture, history and traditions. India is one of the major producerand supplier of Handicrafts products in the world. India has been major producer andsupplierof handicrafts products since very long time. Before the industrial development, this art andindustry was a potential economic advantage for the country.During recent years, the importance of handicrafts has been surged due to their cultural and

financial values. The small scale industries - including handicrafts can play a major role inthe development of the economy of both developed and the developing countries equally.The90-95% of the total industrial products of the world are produced in small workshops run byless than 100 people. For instance, Japan, which is at the peak of the economicdevelopment,has considered 84% of the its industries as small and medium scale industries. In countriessuch as India and China, handicrafts are as high as the mechanized products in quality and


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volume, and are a major source of their foreign earnings. These countries are focusing onthedevelopment of handicraft industry, in order to strengthen the economy.The Indian handicrafts industry is highly labor intensive, cottage based and decentralizedindustry. The industry is spread all over the country mainly in rural and urban areas. Most ofthe manufacturing units are located in rural and small towns, and there is huge marketpotential in all Indian cities and abroad. Handicraft industry is a major source of income forrural communities employing over six million artisans including a large number of womenand people belonging to the weaker sections of the society.The Handicraft sector is highly creative sector and produces large variety of crafts products.This industry is localized segment of the domestic and international market. In India theproduction of craft products are done on both large and small scale. Because of low capitalinvestment people can start their business on small scale. Through this flexibility thedemandand supply can be managed.The Handicraft industry is a major source of income for rural communities and providesample employment opportunities to over 63.81 lakh artisans, which include a large number

ofwomen and people belonging to the weaker sections of the society.Though Indian Handicraft industry is considered a cottage industry, but it has evolved asoneof the major revenue generator over the years. There has been consistent growth of 20%overfew years and the industry has evolved as one of the major contributor for export andforeignrevenue generation.The exports of Handicraft Goods during 2005-06 were Rs. 15,616 crores and upto theJanuary 2007 it was Rs. 16,117.38 crores. For the growth and development of the sectorIndian Govt. has launched following schemes: Baba Sahab Ambedkar Hastshilp Yojna Design and Technical Upgradation Scheme Marketing & Support Services Scheme Export Promotion Scheme Bima Yojna for Handicraft Artisans Credit Guarantee Scheme Gandhi Shilp Bazaar SchemeThere is huge demand of Indian Handicrafts Products in domestic & international market. Itis estimated that Handicraft Industry in India would grow with rapid rate in future andcontributes its share towards economic developmentThough Indian Handicraft industry is considered a cottage industry, but it has evolved as

oneof the major revenue generator over the years. There has been consistent growth of 15%overfew years and the industry has evolved as one of the major contributor for export andforeignrevenue generation.There is huge demand for the Indian Handicraft products in both national and internationalmarket. To match the demand and supply with quality, there is need to have greatertechnological support and innovativeness with the uniqueness in industry.


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India Handicraft IndustryThe concept of Indian Handicrafts has emerged from one of the oldest civilizations calledthe Harrappan Civilization and the Indus Valley Civilization. The exclusive items carvedby the India Handicraft Industry comprise of vast cultural and ethnic diversity that hasimbibed an array of unique themes, techniques, and crafts. India Handicraft Industry hasbeen globally popularized as the rich and cultural heritage of India for its unique appeal.Handicrafts of India use brass, metal, wood, stone, and beads to carve its products rangingfrom masterpieces to plain household items.Paintings, furniture, sculptures, artificial jewelry, animal figures, figurines of deities andidols, baskets, and many more items have been complimented as the pride of India.Besides, trading in the local markets, Indian handicrafts are also exported across the globe.Each work of art reflects the adroitness and emotions of the craftsmen which have madethe work more close to heart apart from being an exclusive show piece.To know more about various types of India Handicraft Industry please browse thefollowing links: India Spinning Industry India Weaving Industry India Pottery Industry India Metalworks Industry

India Woodwork IndustryIndia Spinning IndustryIndia Spinning Industry has gone from strength to strength since a very long time nowas it was the hub of cotton manufacturing. Cotton is not only consumed to the highestextent in India but it has also become one of the most profitable textiles in the exportindustry.Spinning in India can be classified into 2 categories: medium and long staple. But therewas a shortfall in the extra-long category that continued for many years. There was amassive downfall in the cotton spinning in India during 2004-2005. The production rate ofcotton was about 4 lakh bales that was less by 5 lakh bales from the required rate whichwas 9 lakh bales. Mr. P. D. Patodia, the Chairman of the Standing Committee on Cotton,CITI-CDRA said that the manufacturing of cotton will rise to 11-12 lakh bales in 2010.The present downfall in the cotton production has witnessed a 50% increase in the price ofIndian varieties of ELS, which is detrimental for the spinning industry in India. Spinningmills require domestic accessibility of ELS cotton in increased quantity and of better fiberqualities.To survive this downfall in the cotton trade which is a highly profitable textile in the IndiaSpinning Industry, CITI-CDRA is conducting a conference with various researchorganizations such as CICR (Nagpur), JNKVV (Khandwa), UAS (Dharwad), andRegional Textile Mills' Association in R&D activities. It conducted a discussionpertaining to the development of new varieties of seeds and adopting the advancedprocedure of cultivation which will add to the profit in the cotton textile sector of thespinning industry. The most important and efficient step towards the resurgence of cotton

manufacturing would be to develop the ELS varieties with lesser duration crops and yieldto cost-effectiveness and consistency in cultivation. This will not only motivate thefarmers but will also make them stick to the desired sector of cotton crop.The yarn spinning industry covers almost 25 percent of the total industrial production ofone of the world's 10 largest economies. Trends are reviewed every year in accordancewith the need and fashion. An elaborate and detailed assessment is made on varioussectors of the yarn spinning such as, production, consumption, and materials. Thelegislative and the political consequences are also reviewed at the same time. In additionto it, other areas that are being reviewed in the yarn spinning sector are exports, imports,


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prices, advertising, and sales promotion patterns.Some of the popular companies engaged in the India Spinning Industry are listed below: Bhilwara Spinners Ltd. (LNG Group)polyester, viscose, wool-blended fabricsand high-end products like lycra and linen. BSL Suitings and Mayur Suitings arethe two brands under Bhilwara Spinners Ltd. Nitin Spinners Ltd. - manufactures single and multi-fold yarns in the range fromNe 4 to Ne 40 appropriate for various applications such as Knitted Fabrics, WovenFabrics, Terry Towels, Denims, Furnishing Fabrics, carpets and other IndustrialFabrics. Sangam (India) Ltd. (Sangam Group of Companies)Largest producer of dyedyarn in India with a capacity of 64032 spindles in one location.Ajay Group of IndustriesManufacturer and seller of polyester viscose, polyesterwoolen and uniform fabrics.The Spinning Industry in India is on set to hit the global market with other fabrics as welllike the cotton textiles with its enthusiasm and consistency in work. It has already reacheda phenomenal status in India by beating the obstacles that caused a downfall since pastfew years and is now on its way to cover a wider area in the spinning sector.

India Weaving IndustryIndia Weaving Industry is one of the most significant industries in Indian economy. In2004, the Textile government officials conducted a program for the advancement of thesuburbanized powerloom sector.One of the steps taken for it is the alteration of the main instrument called TUFS used in theweaving sector of India. The second hand machines used for weaving are likely to bereplacedwith more modernized ones. This will enable the beneficiary to have its take on the 12percentsubsidy in combination with the credit. This modification is implemented by the PowerloomService Centers that are being modernized to facilitate this alteration. A group of 16 leadingpowerloom clusters have been given the responsibility to work together for themodernizationof Indian powerloom sector. Besides, the center had also decided upon the setting up ofhitechweaving mills and unified textile mills in India for the small scale weavers.Weaving is an ancient handicraft and has several categories, some of which are as follows: Silk weaving Cotton fabric weavingWool weaving Shawl weaving Carpet weavingWeaving in India has been setting the trend for the past hundreds of years. Before it was

handweaving and now various machineries have been implemented for a quicker and moreadvanced production of textiles. The North-eastern part of India is famous for weaving ofbaskets and mats. These are designed in various styles. Border weaving in baskets is aspecialized style which is again classifies under three commonly used styles, namely, treestrand warp border, simple wrapped border and fastened twine. Functional baskets are alsoweaved largely in the Southern part of India. 'Kohari' basket is one such example which isweaved to provide the facility of water drainage while washing rice or fish in the basket.Manipur, a state in India weaves all kinds of baskets. Bengal also weaves a wide variety of


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baskets in different styles. Mat weaving is also popularly practiced in Bengal. Mat weaving apopular Indian handicraft in Pondicherry, a state in India. Mat weaving follows severaldesigns such as horizontal and vertical stripes and also floral ones. Sugar cane andbambooare used as materials for weaving of mats. The traditional weaving art is still followed bymany states in India such as Himachal Pradesh and Meghalaya.Shawl weaving is one of the most eminent handicrafts that is enormously practiced in IndiaWeaving Industry and are not only sold all over India but also exported across the globe.Fewvariations in shawl weaving are as follows: Kashmiri Shawls Pashmina Shahtoosh Jamawar Kullu Shawls DhablaCarpet weaving industry is one of the most leading export oriented handicraft industry in

India. There is a great demand for the expensive silk carpets from Kashmir in the traditionalhouseholds in India. Woolen and non-woolen carpets are also highly adored in varioushomesin India.These are some of the popular weaving mills in India: Gurupal Silk Mills Naik Weaving Mill Nilesh Silk Mills Potabatti Weaving Mill Rajasthan Spinning and Weaving Mills Ltd. Sanjay Weaving Mills Santigo Textile Mills Someshwar IndustriesIndia Weaving Industry is expected to do better with the setting up of automatic air-jet orwater-jet looms which are of vintage kind and have a life span of 10 to 15 years. A series ofprogressive actions also are to be implemented for the betterment of the weaving pattern inIndia soon.Indian Pottery IndustryIndian Pottery Industry has its origins in the earliest era of civilization. Tradition of potteryin India is an age-old handicraft which was claimed to be the expression of human emotionsat the beginning.Indian Pottery Industry speaks volumes about the culture, traditions, architecture, and in-built

talent of Indian artisans who have manufactured innumerable pottery pieces across thelengthand breath of the country. This is one of the most sensual arts in the Indian handicraftindustry.Indian Pottery Industry came into existence with the Indus Valley Civilization and theartwork has been continuing in various areas such as pottery, earthenware, and porcelainforages. Pottery and earthenware are utilitarian and also decorative while porcelain and studio


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pottery belong to the sphere of art. Pottery making are both handmade and wheel-madethat ispracticed all over India. Ever since the Harappan Civilization, pottery making in India hasbeen a significant craft and the potters were always esteemed at that time. They were thebestmasters of their trade. Seals and grains and water are always supplied in lumps so as tofacilitate the efficient use of it while making pottery.Potteries in India are called as the 'lyric of handicrafts' because of its lyrical and universalcharm. It is an amalgamation of concept, design and execution. The making of Brahma isoneof the most esteemed legends in Indian Pottery Industry.The potteries are of various kinds which are listed below: The common earthenware Kullar (cup-like container) Lamps for Diwali Toys for Dussehera Pots for seedling at Sankranti

ainted pots for marriages_ Karigari PotteryAshtrays Flower vases Tea sets Paper weights Decorative animal figuresBlue Pottery is one of the most famous of its kinds in the Indian Pottery Industry. Delhi isfamous for Blue Pottery in India. Such a distinctive name is entitled to the pottery so as tohighlight its eye-catching outlook and differentiate it from other potteries. The specialty inBlue Pottery is that, a Persian blue dye is used to color the clay from which the potteries aremade. This is the exclusive attribute of Blue Potteries it is also equally famous in Jaipur, astate in India. Some of these potteries are transparent and are adorned with animal and birdthemes. The Jaipur Blue Potteries are made of Egyptian paste and are kept at a very lowtemperature after it is made.Religion has also made its presence in the Indian Pottery Industry with the making potteriesof various deities and idols of worship. These are categorized under 3 heads: Figurines of Divinities Ceremonial Pottery Votive OfferingsToday, in the villages of India, around 15 lakhs of potters are trading their talent and about95% of them are involved in traditional red or local clay pottery work. With thisinnovativeness and hard work combined with enthusiasm, Indian Pottery Industry will keep

on ruling not only its own country but also the globe.Indian Metalworks IndustryMetal work is an age-old tradition in India. Indian Metalworks Industry has been reigningsuccessfully since last 5000 years from now. The beautiful image of the dancing girl fromMohanjodaro is one of the most outstanding works of the Indian Metalworks Industry.Metal works in India had used a wide array of metals, such as, iron, copper, silver, andalloyslike bronze, bell metal, white metal, and etc to manufacture items like pots, pan, utensils,photo frames, figurines of deities, mythological characters and animals.


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Indian Metalworks Industry has reached the level of excellence in craftsmanship with itsexclusive works. One of such example is the iron pillar at Mehrauli (Delhi) which belongs tothe Mauryan. The craftsmen during Chola period mastered at bronze sculptures.Traditional vessels of iron and brass are the specialty of Ladakh in Kashmir. Kashmir is alsowell-known for other metal works, especially the richly graven traditional household itemssuch as, bowls, samovars, plates and trays. In 'Naqasi', epicurean floral and calligraphicdesigns are embossed on copper and silver pieces. Figurines of deities and householdutensilsare some popular metal works in Banaras.< A nomadic tribe called Godiya Lohar in Rajasthan crafts iron utensils for regular use andthose who mastered in craftsmanship makes idols, lamps, and curios. Jaipur prides itscraftsmanship in brass engraving and lacquering. Items carved out of these metals arephotoframes, bowls, plates, boxes, and etc. The art of Koftagari or damascening work is ispracticed at Alwar. Other states that bears fame for beautiful and ethnic metal works areMadhya Pradesh, Andhra Pradesh, Orissa and Tamil Nadu.Indian Metalworks Industry is growing at leaps and bounds in the steel manufacturing with

aninstallation capacity of 36.12 million tonnes. Ore miners is one of the most well-establishedsector in this industry. Few companies that are engaged in iron mining are National MineralDevelopment Corporation, Kudremukh Iron Ore Co., and Essel Mining & Industries Ltd.India is also quite well-known for manufacturing coal based sponge iron. It has occupied 15percent of the global output and Jindal Steel & Power Ltd. is the largest producer of thesamein India with an installation capacity of 650,000 TPA.Flat metal products are highly manufactured by SAIL, Tata Steel, Ispat Industries, JindalGroup of Industries, and Uttam Steel and Bhushan Steel.Indian Metalworks Industry has acquired a commendable status not only in India but also inforeign states by selling its unique products in the local as well as in the global market.India Woodwork IndustryIndia Woodwork Industry is one of the fastest growing industries in India's economy.India possesses around 100,000 registered woodware units and more than 200,000artisansalong with countless other woodworking related units in the sector. Wood has always beena major part of Indian handicrafts and various beautiful things are crafted out of it. Indiatakes pride in manufacturing exquisite and handsome wooden handicrafts in diversemotifs.The wooden handicraft of India is draped with a vast cultural and ethnic diversity which isapplied to a range of themes, techniques and crafts. These wooden handicrafts are uniquein their own style and are claimed to be an absolute personification of the Indian heritage.

India Woodwork Industry has not only specialized in serving architectural purpose butalso manufactures furniture both in traditional as well as ultramodern style.In the rural areas of India, furniture and other household utensils are carved out of wood indifferent shapes and styles. These simple objects are so uniquely blend that they in no waylook like daily use stuffs. Animal figures are also an excellent example of India's ethnicwoodwork. These wide ranging exclusive styles adopted by the India woodwork industryto carve out various stupefying objects are prepared in different parts of India. Some of themost well-known states of India involved in woodwork are as follows: Gujarat - Famous for woodwork in carved chests, almirahs, and wooden swings.


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The wooden swings vary from plain Hewn wood to lavishly embellished ones.There is also a tradition of embedding indigenously made gold, silver, and bronzehues on wood in a place called Sankheda village in Gujarat. Surat, another place inGujarat, is well-known for its marquetry-work which is called as 'Sadeli' by localpeople. Kashmir- Famous for its exclusive Kashmir houseboat made out of a speciallymollified wood that does not soak in water. Also, the houses in Kashmir are madeof wood with latticework windows and geometrically patterned ceilings.Hoshiarpur (Punjab) - Gained immense popularity for carving inlaying ivorywhich is now replaced with plastic to cut down on the cost. Wooden furniture,trays, and mirror frames are usually crafted using intricate designs that wereclaimed to be the royal patronage ages back. Saharanpur (U.P) - The leading place for commercial purposes. Sheesham andTeak are the chief woods used for manufacturing traditional as well ascontemporary designed products-screens, cigarette boxes, tables, trivets, bookends,and so on. Of late, Saharanpur is dealing with wood seasoning only. Kerala - Specializes in arena handicrafts that along with representing their customs

and beliefs also portray their spiritual values and emotions. Other areas - West Bengal, Bihar, Orissa and Andhra Pradesh are also engaged incarving out various uniquely designed items out of wood.India Woodwork Industry uses various kinds of woods, for example, Walnut, Sandalwood,Teak, Sheesham, Deodar, Ebony, Redwood, Rosewood, Red, Cedar, Sal, and many more.Recently, embedding of brass wires (Tarkashi) has gained lot of attention worldwide.India has set up over 3,000 woodworking units and the number is increasing with thepassage of time.

Handicraft ExportsHandicraft Industry has evolved as one of the major contributors for Export and foreignearnings:- Exports of handicrafts including hand knitted carpets during 2005-06 wereRs.13412.92 Crore. Export items- Art Metal wares, Wood wares, Hand printed textiles, Embroidered andCrocheted goods, Shawls as art wares, Zari goods, Imitation jewelry, Carpets, Leatherproducts, Jute products, Paintings, Bamboo products, Earthen ware, Marble Sculpture,Bronze Sculpture etc. India's major export markets are USA, Germany, UK, France and Japan, Saudi

Arabia, Canada, and Italy etc.(Rs. in Crores) US $ Million

Handicrafts PoliciesIndian Handicraft Industry contributes very important role in Indian economy. For the properfunctioning and operation of industry it is very essential to have some policies andregulationin place. In India, the Ministry Of Textile is responsible for the formulation of policy,planning, development, export promotion and regulation of the Handicraft Industry. Thereareseveral other bodies and organizations which help to formulate and execute these policies.

Allpolicies should be implemented for the greater development of the whole industry so that it


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can help to strengthen the economy.Industrial Policy: There are no restrictions regarding location for establishing manufacturing units.All producers of handicrafts are exempt from obtaining Industrial License tomanufacture. The delicenced undertakings, however, are required to file an IndustrialEntrepreneur Memoranda (IEM) in Part 'A' with the Secretariat of Industrial

Assistance (SIA), and obtain an acknowledgment. No further approval is required.Trade Policy: Handicraft products fall under the ITC (HS) code 97. Paintings, drawings and paintings, domestic articles of wood etc. which come under9701 Original engravings falling under 9702 Original sculptures categorized under 9703 Products under the code 9704 are freely importable. Imports of items in 9705 are restricted.Characteristics of Indian Handicrafts for exports; as defined by Govt. of India are: They are quota free and neutral to fiber content or composition, barring 100% silk.

They include Garments, Made-up and clothing accessories.Are produced in cottage industries. Should not have zippers. Must be ornamented using any one or more of the following Indian folk styles. Hand painting, Hand printing, Batik, Tie and Dye, Kalamkari. Hand embroidery, Crocheting.Appliqu work of sequins, wooden or glass beads, shells, mirror, ornamental motifs oftextiles materials. Extra wrap of welt ornamentation of silk, art silk or zari threads. Should conform to shape and styles of each item as defined in the agreed list ofdifferent countries. Should satisfy the dimensional aspects.Tariff-non-tariff Policy:Except for 9704, all the items under 97 attract a total import duty of 35.2 per cent. Thisincludes a basic duty of 35 per cent and a special additional duty of four per cent. Itemsunder9704 do not attract any import duty.

Export prospects of handicraftsfrom Indiahandicrafts sector occupies animportant place in the Indian economy as it contributessignificantly to employment generation and export earnings. The economic importance ofthe sector also lies in its high employment potential, low capital investment, high value

addition and continuously increasing demand both in the domestic and overseas markets.Thesector provides employment to more than 60 lakh craft persons mostly from rural areas.industry is highly labour intensive and decentralized, being spread all over the country inrural and urban areas. Details of concentration of major handicrafts at different places inIndia appear at Annexure I. The Office of Development \Commissioner (Handicrafts) underthe Ministry of Textiles, Government of India is the nodal Government Department at thenational level for the development of handicraft sector in the country. Through its variousagencies like Export Promotion Councils for Handicrafts, State Handicrafts Development


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Corporations, Apex Societies and (17.28%), UK (13.69%), Japan (7.85%), and Sweden(4.38%). On the other hand, the countries showing a significant growth during the periodincluded: Korea Republic (54.74%), Canada (37.34%), France (25.41%), and Netherlands(25.03%)., it has been supplementing the efforts of the state governments by implementingvarious developmental schemes of the Government of India. The handicrafts sector hasbeenidentified by the Ministry of Commerce and Industry, Government of India, as a thrust areafor export promotion. The Export Promotion Council for Handicrafts (EPCH) functioningunder the aegis of Office of Development Commissioner (Handicrafts) and governed bythe policies of the Ministry of Textiles, Government of India, since its inception in 1986, hasbeen playing an important role to promote exports of Indian handicrafts. To boost exports ofhandicrafts, the Council undertakes various activities like participation in national andinternational trade fairs, arranging buyer-seller meets, organizing workshops, seminars andtraining programmes. The various handicrafts promoted by the Council inter alia includeartmetalwares/EPNS wares, hand printed textile and scarves, wood carvings and otherartwares, embroidered and crocheted goods, zari and zari goods,shawls as artware, imitation jewellery and several other handicrafts, namely artistic leather

goods, papier machie products, lace and lace goods, toys, dolls, lacquerware, marblecrafts,etc. For knowing latest developments in the exports of handicrafts and also participation intrade fairs both in India and abroad, access its website: www.epch.com.During the year2004-05, the Council undertook various export promotion activities. Some of the important onesincluded: (i) Participation in many trade fairs abroad, viz. FAME trade fair at Manila from19-22 April 2004; Impex- Gift & Homeware International at Melbourne (Australia) from18-20 May 2004; Gifts & Premium Show held at Hong Kong from 28 April to May 1(i) World Imports. World imports in 2003, as may be seen from Table 1,registered a decline of 8.94 per cent when the same reached a level of US$10,046million as against US$11,032.7 million in the previous year. USA continues to be thelargest importing country. However, during the period, its imports registered adecline of 15.92 per cent when the same nosedived to US$4,352.8 million fromUS$5,172.2 million. The countries registering a declining trend during the periodincluded: Italy (66.33%), GermanyWORLD TOTAL 11,367.0 11,032.7 10,046.0 (-)8.94Source: United Nations, 2003 International Trade Statistics Yearbook, Volume II,Trade by Commodity, New York, 2004.Source: Office of the Development Commissioner (Handicrafts), Ministry ofTextiles, Government of India, New Delhi.Category wise Indias exports of handicrafts to major markets in 2003-04 and 2004-05 and their exports in select markets during this period appear at Annexures II and

Export Promotion Councils1) The All India Handicrafts Board : (West Block VII, R.K. Puram, New Delhi- 110022).This board acts as a Commodity Board for handicrafts and has an Export Section with aDeputy Director (Exports) in charge. The Board collects and disseminates information,arranges exhibitions, sponsers sales and study teams, and invites foreign buyers. Theregionaloffices of the Board handle registration and process requests for any specific exportpromotion measures.2) The Gem and Jewellery Export Promotion Council : (D-15, Commerce Centre, 4th


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Floor, Tardeo Road, Bombay- 400001) The council aims at providing facilities andincentivesregarding the exports of pearls, precious and semiprecious stones, diamonds and sytheticstones; to assist in improving and modernising of the jewellery craft of the country.3)The Handloom Export Promotion Council : (123, Mount Road, Madras- 600006) Itsuperintends the export promotion of INdian Handlooms in the country.4) The Handicrafts and Handlooms Export Corporation of India:(Jawahar VyaparBhavan, Anex-I, Tolstoy Marg, New Delhi 110001). A government of India undertaking, itsupplements the export efforts of the private sector, besidesexporting directly. It undertakesvaroius exort promotional and developmental measures such as publicity and Indianparticipation in foreign exhibitions, and invites reputed designers for advise and assistence.Italso has branches, showrooms and warehousing depots abroad.5) The Indian Institue of Foreign Trade : (Ashoka Bhavan, 93 Nehru Place, New Delhi-110024). Besides training courses for export executives, this Instiute carries out surveys ofvarious markets and publishes them.6) The Trade Development Authority of India : (Bank of Baroda Building, 16 Parliament

Street, New Delhi- 110001). Handicrafts and garments are included in it's trade promotionactivities among other items. It also has offices in New York, Frankfurt and Tokyo. Besidesinviting buyers, it arranges buyer- seller meets in selected markets.7) The Export Credit Gaurantee Corporation : (Head office : Express Towers, 10th Floor,Nariman Point, Bombay-400001). It provides export credit intelligence and issues, coversagainst risks. It also has branches in Delhi, Calcutta, Chennai and Cochin.8) The Export Inspection Council : (14/1-b Erza Steet, World Trade Centre, Calcutta-700001). This Council has especially been set up to ensure the quality control andPreshipment

Act. The Council has also set up a number of Export Inspection Agencies.9) The Federation of Indian Export Organisation : (Allahabad Bank Building, 17Parliament Street, New Delhi-110001). It is a non profit servicing institution, set up jointly bythe Government, industry and trade. FIEO is an apex forum coordinating and supplimentingthe insitutions. It also gives special attention to the export promotional activites of smallsector including crafts.10) The Trade Authority of India : (Pragati Maidan, New Delhi-110001) The TFA is anautonomous organisation established by the Government of India as a company. Started inMarch 1977 it has today become a highly effective organisation giving a new orientation tothe country's trade promotional activities. It unifies policy direction, controls and implementsprogrammes of India's participation in fairs and exhibitions, both in India and abroad.Handicrafts continue to recieve the special attention of the TFAHandicraft MaterialsIvory Craft Supplier China

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Trade only, latest products,inspiration, news and advice www.CraftFocus.comIndia is a treasure trove of the most exquisite handicrafts available. Various raw Materialshave lent themselves to an array of exotic items that are instantly captivating. The amazingdiversity in Indian cultures and traditions, ensures variety in the transformation of everysingle material to a handicraft item. The deft hands of the craftsman breathes life into theseMaterials shaping them into beautiful pieces of art. Click on to read about the different


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Materials used in different parts of India, and the various handicraft items made out of them.Silver Rose BeadsExquisite Gemstone and Pearl Beadsdiamonds, sapphires, and rubieswww.SilverRoseBeads.comMetal Spinning MEXICOCustom made Products up to 60'' diaAluminum, Mild Steel, Copper, Brass www.rytmsa.comHandmade 3D Mural TilesHandmade Ceramic Mural Art Tiles,Rooing Tiles,Ceramic Glazed Jaalis! www.rajatiles.com/Ads by GoogleAluminum CraftsSplendid designs with panache, Indian artisans produce marvelous work of aluminum craftseach unique in their own way blending perfectly the antique & contemporary art work.Bead Crafts

Beads of transparent & semi transparent nature are pleasingly used to give shape to variedaesthetically appealing products helping in enhancing the overall impact on the onlookers.Brass CraftsBrass craft ornamentations always have a spell bounding effect on people with their minute

&detailed engravings highlighting the effortless beauty put into them by the dexterouscraftsmen.Cane/Bamboo Crafts

Add feathers to the surrounding's beauty by incorporating fragilely designed cane &bambooitems in the decor, thus, depicting the rich Indian artistry in the most sophisticated style.Ceramic CraftsExpress imaginative thoughts & add magnetism to the milieu with these artistically designedceramic products projecting the artist's mastery over one of the finest Indian artwork.Coir

Intoxicate the senses with the finely crafted coir fiber poducts. Bring the Indian rural touch tothe rich & suave drawing rooms & highlight the intricate formation of eye catching coirartifacts.GemsGive concreteness to imaginations by imparting exclusive shapes with refinement to gemproducts. Enhance the frailness of gem jewelry products by incorporating equally fragilepatterns.GlassGlassware depicts the richness & sophistication of the traditional art craft coupled withelegance& frailness. An ultimate decorative item, glassware products have never lost theenigmatic spell.Paper Crafts

Bring color to life by decorating the environment with attractively handcrafted paperproductsavailable in unique range of designs, vibrant hues & variety.IronmongeryThe raw appeal imparted to the varied products through engravings done on forged ironMaterials adds a classy touch to any setting projecting the rich tradition of ironware.IvoryGrace the pristine beauty of a living space with the extraordinarily crafted ivory ware


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products, thus, reminder of the rich past culture & tradition with their masterful cuts,carvings& designs.JuteElaborate & intricate designs make the most appealing environment friendly jute productsperfect for decorating any setting, leaving an aesthetic & pristine touch.Leather CraftsLeather crafts have always enamored people with their soft & royal sheen & rich material.

Available in a wide range of products, leather has been in usage since ages without losingitstimeless charm.Metal CraftsMetal crafts have lured the customers with their refined artwork. Be it copper, bronze or nonferrous elements, all appeal the eyes when coupled with inlay work & embellishments.Papier Mache Crafts

Alluring crafts made of waste paper Materials, papier mache crafts have created a nichemarket for themselves successfully with wild imaginations carved out beautifully on these

Materials.PotteryThe age old tradition of pottery has been kept alive by craftsmen blending the antique withmodern designs. Adorn the setting with these ethnic crafts available in wide range ofdesigns.Stone Crafts

Stone crafts find place in any setting due to their extreme functional aspect. Be it kitchen,garden, office or a public place, stone crafted products have immense importance.Silver CraftsOwing to the unique appeal and intricate craftsmanship of adept Indian craftsmen, there is ahuge demand of aesthetically created silver crafts.Terracota CraftsTerracotta work has always enhanced the decor with their appealing beauty leaving peopledumbstruck. Giving shape to varied figurines & plaques, these earthenwares are worthpossesing.TextileVibrant colors with intricate & interesting patterns impart a definitive character to the variedfacets of Indian textile, thus, constantly introducing the customers to the rich Indian textiletradition.Wood CraftsRedefine the appearance of the home furnishing area by incorporating distinct decorativeitems in wood Materials. Shaped with fine cuts, intricate detailed work, imaginative designsmake them look unique.

Wrought Iron CraftsThe raw appeal of wrought iron crafts is still intact with people dazed by the antique &fabulous artwork perfect to impart individuality to a milieu with their flawless beauty.Competitive SituationGerman giftware and handicrafts consumption is growing more or less in line with therelatively slow growth rate of income during the last years. Thus, expectations for additionalgrowth are not very high. Annual growth rates of between 1.5-2 percent are forecast for thenext few years for the overall giftware and handicrafts market. In general the market showsgood business opportunities if prices and quality are competitive and delivery schedules are


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fulfilled.Apart from its own producers, Germany is supplied by giftware and handicrafts from nearlyall of the European countries. German firms often import specific product groups from aparticular country. Major suppliers of pottery are, for example, Spain and Portugal; f ineexclusiv e stationery comes from Italy, France and Switzerland; candles from Poland,Chinaand Portugal; dried flowers from the Netherlands etc.Fierce price competition in Germany is intensified by the increasing quantity of Chinese and

Asian made products on the market. For India this situation coupled with the relativelystrong Indian rupee which means that firms proving to be most successful in the recent pasthave offered niche market giftware and handicrafts, i.e., exclusive to Indian handicraftsitemsor new-to-market products.A few well-established German manufacturers of giftware and handicrafts items are:Koziol GmbH, Erbach Krebs-Glas-Lauscha GmbH, ErnstthalBarti GmbH, Garching Margarete Steiff GmbH, GiengenDuni GmbH & Co. KG, Bramsche WMF AG, Geislingen

Rastal, Hoehr-Grenzhausen Rosenthal AG, SeibFartak, Lahr W. Goebel Porzellanfabrik, RoedentalGIES Kerzen, Glinde Walther-Glas GmbH, Bad DriburgJet Papier GmbH, BernauSales volume of specific sub-sectors (estimates):Some estimates of individual giftware and handicrafts subsector volume sales are providedasfollows:Seasonal: Market insiders estimate the total volume of the seasonal items market,includingChristmas, Easter, Valentines Day and the German counterpart of Thanksgiving, at DM 7.7billion. In 1997, about DM 3 billion were spent alone for Christmas decoration, Christmasfloristic items and Christmas trees only. Christmas items are usually imported from China,Taiwan, Thailand, Philippines and India. However, Indian Christmas decorations as candlestands or Christmas tree hangings and soft toys find a ready market in Germany if they aremoderately priced.Hobby and art supplies: The present market volume of hobby and art supplies inGermanyis estimated at about DM 3 billion, while the total European market should amount to DM 12billion. Insiders believe that this specific market segment still offers some potential for newproducts. A recent survey shows that apart from their school days, most of the Germanswhodo regular DIY or hobby work are between 60 and 69 years (10.8 percent of the German

adults) old. With the fast ageing of the German population a stronger demand for hobby andcrafts is likely.Incentive items: From 1992 to 1998, the total German market for incentives increased fromnearly DM 3 billion to DM 6 billion.Toys: In 1998, annual sales of licensing products amounted to about US$ 4.2 billion inGermany. Also in 1998, the toys market volume expanded to DM 6 billion. Total annualsales for computer games and learning games alone, increased to DM 2 billion in 1998compared to the pre-year level of DM 1.7 billion.Market Access


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EU member states and Asian countries, China and India in particular, are major suppliers ofgiftware and handicrafts to the German market. Indian firms making a first approach to theGerman market are advised to have comprehensive product literature and data sheetsprofessionally translated into German. Although English is widely understood, awellpreparedtranslation gives an important marketing edge, particularly in the initialpresentation. Indian firms should preferably appoint an agent or distributor who canmaintaina stock sufficient to answer short-notice orders.Customs DutiesCustoms duties vary according to material and product. Though duties are high for a fewitems, i.e., dried flowers, potpourri (16.7-20 percent), T-shirts (12.0-13.2) and hand- woven,woollen blankets (13.4 percent), the majority of customs duty rates falls in the range of 5-8percent. For example:Customs Duties (in percent)Ceramics : 4.1 - 7.5Toys : 5.6 - 6.3

Stationery : 8.4Plush animals : 6.0Quilts/blankets : 7.5Candles : 2.8Silver jewellery : 2.5In addition, there is a 16 percent sales tax, which is eventually passed on to the consumerinform of the value-added tax (VAT). But the VAT has to be paid when entering the Germanmarket by the exporter/German importer.Items that originate from certain animal species, i.e., snakeskin or hides of some animal, itmust be ensured that the export of these products complies with the Convention onEndangered Species (CITES). Regarding sample orders, exporters should be aware thatonesample with a maximum value of DM 50 each or, five identical samples of one productgroupnot exceeding a total value of DM 50, are usually customs free.Product StandardsIn view of the wide field of products that could be considered as giftware and handicrafts, itis difficult to name standards. Compliance with EU standards and regulations is stronglysuggested. There are, however, only few product groups in the giftware and handicraftsfieldthat have to follow standards. It is essential that CE-labelling be observed where required.The CE-mark (including conformity statement and technical documentation) is mainly

required for toys (88/378/EEC standard). While the quality regulations for candles areobligatory assuring a certain level of quality, the toy regulation and the electronic standardshave to be observed because of safety considerations:Major Distribution ChannelsWholesalersImporters/distributorsCommission agents/sales representativesDepartment storesMail-order


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Internet salesTele-shoppingThe individual channels are described in detail in the following.

Wholesalers:Besides offering wide range of goods to retailers for direct sales, this channel also supplies

large quantities of individual articles. They are very particular in maintaining consistency inthe kind of products and their quality. One of the distinguishing features of wholesalers is toprovide distribution and storage facilities. Specialised wholesalers deal in sales to retailersaswell as to final consumers. They maintain high quality standards and but have a narrowerand in-depth range of arts and crafts.

Importers/distributors:Most Indian giftware and handicrafts companies use importers/distributors to market andselltheir giftware and handicrafts lines. They buy and sell on their own account. Thus, thecompanies take advantage of the distributor's expertise, his sales force and his existing

distribution channels. Distributors call on giftware and handicrafts retailers, purchasinggroups and supermarkets. The distributors' mark-up varies depending on the giftware andhandicrafts item, but at least 50 percent. While the mark-ups vary according to thedistributor; they usually also depend on the exclusivity of a product and on itscompetitiveness in the overall giftware and handicrafts market.Germany hosts more than 45,000 giftware and handicrafts retailers. Several retailers importdirectly from the United States and sell to the German customer. Usually these are smallcompanies looking for items new to the market and handling small orders only.

Commission agents:Commission agents provide Indian companies with direct access to the German market anddirect control. Independent commercial agents are normally working on a 15 percentcommission and operate on a regional basis. They concentrate on specialist retailers,purchasing groups and department stores. Commission agent contracts are based onstringentEU and German regulations. An Indian firm wishing to appoint an agent should make surethat such standard contracts meet its expectations. In order to facilitate market entry effortsby the agents their initial commission is often a few percent higher than the "usual"commission. These additional payments are to reimburse the agent for substantialadvertisingand any special efforts facilitating the new product's market entry.

Department Stores:Indian companies interested in establishing business contacts with major departmentstores,

mail-order houses and retailers may also choose the direct approach. Department stores inparticular, prefer to deal directly with manufacturers. Their buyers are very specialized andonly handle a limited range of products. At some occasions department stores also buythrough independent commercial agents. Quite often they have their own buyers as well asafew agents that usually work with them and who know their assortments. If a departmentstore decides to import a particular giftware and handicrafts item, it places bulk rather thansmall orders.


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Mail Order:On an average, each German consumer buys products totaling to DM 500 each year frommail-order houses. There are about 200 mail order companies in Germany. In Europe,Germany is the largest mail order market, followed by Great Britain and France. The totalEuropean market volume for mail order products is estimated at approximately DM 90

billion. Of the 20 major mail order companies in Europe, 12 have their headquarters locatedin Germany. Among them are the world's largest mail order companies: Otto Versand inHamburg and Quelle Schickedanz AG & Co. in Fuerth. In addition, several German mailorder companies operate in other European countries, as well.

Internet Sales:Germany will become market leader among the EU countries with regard to sales over theInternet by the year 2000. It is anticipated that by then German electronic sales, which areestimated to reach a volume of DM 500 billion worldwide in 2000, become second in theworldwide ranking after the United States and before Japan. A typical German Internet userand a major German mail-order publication is between 20-39 years old, is highly educatedand earns more money than the average German consumer. This age group consists of

about4.5 million Germans. Seventy percent of these consumers are male. Already today, theInternet is a major sales channel for German mail-order houses.

Teleshopping:QVC and HOT are the two tele-shopping channels in Germany. They operate all overGermany and offer various types of giftware and handicrafts; jewellery, fashion, health,beauty; household consumer goods; collectibles and home accessories.

MODE OF TRANSPORTATION CHOOSEN BY US.Our study is basically to show the richness of India in Handy Craft. India is huge producerand exporter of handy craft products such as clothes , gems , jewellaries , leather products ,paintings etc. Gems and jewelleries are exported through ariel route ( shown by red

line)whereas all other products are transported through sea route ( shown by black line )because they are transported in bulk.

CONCLUSIONAs we conclude the whole data we can see the result that India enjoy theMonopoly in this sector and every handycraft industry is influenced by Indiabecause India is the largest producer and exporter of handycraft and supplychain management and logistics play the important role in this this particularsector, this is the backbone of this industry . An effecent supply chain givesthe competitive advantage to this industry.

Referencehttp://www.india-crafts.com/business-reports/indian-handicraft-industry/handicraft-policies.htmlhttp://www.terpconnect.umd.edu/~mstanto1/world-map.jpghttp://www.india-crafts.com/business-reports/indian-handicraft-industry/handicraftintroduction.htmhttp://www.india-crafts.com/business-reports/indian-textile-industry/handicraft-textileindustry.htm


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http://business.mapsofindia.com/india-industry/spinning.htmlhttp://www.india-crafts.com/business-reports/indian-handicraft-industry/handicraftexports.Html

European Union: A promising market for Indian handicraftexporters

Writuparna Kakati | 19 Sep, 2008

Often considered as a cottage industry, the

Indian handicraft industry has outgrown its

image to evolve into one of the major

contributor for export and foreign revenue

generation. Today, it is the second largest

employment-generating sector in the country

providing employment to more than six million

people.

The handicraft industry in India has witnessed aconsistent growth of 15 per cent over a decade

turning itself into an important suppliers of handicrafts to the world market. The industry

is expected to achieve an export turnover of Rs. 39,000 crore by 2009-10 that, in turn,

will also create around 20 lakh new job opportunities.

Although India's exports of handicrafts appear to be sizable, the country's share in the

USD 100 billion international handicrafts market is just about 2 %. Despite the existence

of a strong production base and a massive workforce, India has not been able to encash

the existing opportunities in the handicraft sector. Analyzing the cause behind the small

share on Indian handicrafts in the global market, the main factor which comes out is the

Indian exporters inability to identify potential overseas market. Indian handicrafts are

highly acclaimed all over the world for their large variety and diversified range. But still

most of the Indian exporters in this field are unaware about international requirements

and current market trends.

Current export statistics

The India handicraft industry was worst hit by the sudden rupee appreciation during the

last year. Following rupee appreciation of over 13% against the value of US dollar in the

last financial year, the handicraft sector of the country lost revenues of around $500

million and could export only around $3 billion, as against the target of $3.5 billion.

During 2007-08 (April to March), the exports of handicrafts have shown a decrease of

Rs.3276.09 crore, from Rs. 17288.14 to Rs. 14012.05 crore, a decrease of 18.95% inrupees term. In dollar terms, the exports have shown the decrease of US $ 330.12

millions i.e. the exports decreased by 8.66% over the similar period in 2006-2007.

During 2008-09 (April to August), the exports of handicrafts have shown an increase of

Rs. 130.31 crore, from Rs. 4302.04 to Rs. 4432.35 crore, an increase of 3.03% in rupees

term. In dollar terms, the exports have shown the increase of US $ 8.03 millions i.e. the

exports increased by 0.77% over the similar period in 2007- 2008.


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During the period, the exports of woodware, embroidered & crocheted goods, shawls as

artware, imitation jewellery and misc. Handicrafts showed the increasing trend

11.82%,8.55%,5.36%,4.95% and 3.09% in rupees terms respectively and

9.36%,6.17%,3.06%2.64% and 0.83% in us$ terms respectively whereas art metal ware,

hand printed textiles & scarves, zari & zari goods decreased by 0.81%,2.02% and 2.15%in rupees terms respectively and 2.99%,4.17% and 4.31% in us$ term respectively.

Overall an increase in the rupee term was 3.03% and in the US $ term was 0.77% .

European Union: A promising market

In 2005, the total EU consumption of wooden gifts and handicrafts amounted to 1,251

million. According to different market research firms, the wooden gifts and handicrafts

market in the EU is likely to increase by 2-3% annually until the end of the decade.

In 2005 the period total production of wooden gifts and handicrafts in the EU amounted to

936 million. The frames market accounted for 64% of consumption of wooden giftsand

handicrafts in 2005 while the statuettes and caskets market accounted for 36% of

consumption of wooden gifts and handicrafts during the period.

In 2006, the total value of wooden gifts and handicrafts imported into the EU amounted

to

717.2 million. Imports from developing countries grew almost 5% from 2004 to 2006.

Almost 46% of total imports into the EU come from China. The rest of the imports from

developing countries are supplied by Indonesia 10.8%, Thailand 9%, India 5% and others

0.2%.

The best opportunity for the India exporters of handicraft items exist in the low-end of the

market, as labour costs are generally lower in India. While preparing the export plan, it is

important to keep in mind that the trade structure of the handicraft market in the EU ishighly complex in the sense that handicrafts and wooden gifts are distributed through

many different intermediaries and retailers. There are hardly any shops selling only

wooden gifts and handicrafts.

Market segmentation

The EU gifts and handicraft market can be segmented roughly into upper, middle, and

lower segments. This segmentation applies both to the retail and other levels (such as

wholesalers and importers) in the market.

Upper segment: 5-10%

Upper-middle segment: 20-30% Lower-middle segment: 30-40%

Lower Segment: 20-40%

Distribution intermediaries

While exporting, choosing the right trading partner is very important. As mentioned

earlier, the trade structure of the handicrafts and wooden gifts market in the EU is very

complex. Therefore it is a must for exporters willing to export to the EU to find out the


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best trading partner according to their specific profile, product range and goals. Some

main distribution channels exporter may consider are -

Agents Importers-wholesalers

Buying Groups Retailers

Export marketing organisations.

Some most promising EU markets:

Germany: Consumption of the wooden gifts and handicrafts in Germany was 180

million (approximately ) in 2005 of which the frames market amounted to 67 million

(37%) while the statuettes (54%) and caskets (46%) market amounted to 113 million.

Researchers has predicted that the German handicraft, wooden and gift article market will

slowly increase until 2009, by approximately 1.8% annually.

France:Consumption of the wooden gifts and handicrafts in France was 134 million

(approximately) in 2005 of which the frames market (59%) value amounted to 79

million while the statuettes (46%) and caskets (54%) market amounted to 55 million.

According to market researchers, the total gifts and decorative articles market in France is

expected to increase by approximately 1.4% annually during the period 2006-2009.

United Kingdom:Consumption of the wooden gifts and handicrafts in United amounted


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to 430 million (approximately) in 2005 of which the frames market (68%) value

amounted to 104 million while the statuettes (30%) and caskets (70%) market

amounted to 47 million during the period. Researchers forecast 7% annual increase the

consumption of the UK wooden gifts and handicrafts market.

Italy: Consumption of the wooden gifts and handicrafts in United was 152 million(approximately) in 2005 of which the frames market (76%) value amounted to 325

million while the statuettes (50%) and caskets (50%) market amounted to 104 million

during the period. Researchers forecast that Italy will show steady growth in GDP and

population in the coming years and the consumption of the wooden gifts and handicrafts

will also increase in the country.

Spain: In 2005, the apparent consumption of wooden gifts and handicrafts in Spain

amounted to 201 million of which the frames market (65%) value amounted to 131

million while the statuettes (64%) and caskets (36%) market amounted to 70 million

during the period. The population of the country is projected to increase to 45.3 million

by 2015 in parallel with annual increase in GDP of around 7% for the next few years.

Therefore, it can be expected that the consummation of the wooden gifts and handicrafts

will grow in the coming years.

The Netherlands:In 2005, approximate consumption of wooden gifts and handicrafts in

the Netherlands amounted to 30 million of which the frames market (67%) value

amounted to 20 million while the statuettes (60%) and caskets (40%) market

amounted to 9 million during the period. Researchers forecast that Dutch wooden gifts

and handicrafts market will grow by 1.5% in the coming years.

Belgium: In 2005, approximate consumption of wooden gifts and handicrafts in Belgium

amounted to 13 million of which the frames market (62%) value amounted to 8

million whil

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