Market Assessment of Business Development Servic assessment of BDS... · This market assessment of business development services ... to be at the lowest level of the social caste

Study sponsored by

The Small Enterprise Education and Promotion Network , Washington DC, USA

Publication sponsored by

Swiss Agency for Development and Cooperation , New Delhi, INDIA

Implementing agency

EDA Rural Systems Pvt Ltd, Gurgaon, INDIA

Market Assessment of Business Development Servic

among leather artisans in the Jaipur region of I

March 2003

Preface & Acknowledgements

This market assessment of business development services (BDS) obtained by artisans in the leather sub-sector of the Jaipur region of India is the firstcomponent in the development of a demand driven and commercial BDS market for enterprises in the leather sub-sector. The information obtained andthe understanding developed from this exercise would help design suitable interventions for the leather sub-sector to develop a commercial BDSmarket.

EDA Rural Systems Pvt Ltd would like to convey its gratitude to the SEEP Network for the support provided to this project. The market assessmentteam also would like to thank Jimmy Harris, Manager, Practitioner Learning Programme (PLP), SEEP Network for his efforts in support of our work.PLP Facilitator, Aly Miehlbradt provided continuous support and invaluable inputs and comments to the entire market assessment exercise and to thedraft report. Our thanks are due to her and to all the PLP participants who provided us insights and shared their views on various aspects of the BDSmarkets through the list-serve discussions.

The assessment team would like to thank Sanjay Sinha, Executive Director, EDA for his continuous guidance and inputs to the pro ject and forfinalising the report. Above all, the team is grateful to all the leather artisans and BDS providers in the sub-sector who spent time with us, answeringquestions and sharing information and their views. We very much hope that the information and views reflected in this report will serve the purposeof developing a commercial and vibrant BDS market for the sub-sector.

Market Assessment TeamAshok Kumar, Team Leader, Enterprise Promotion and BDSSanjay Bharati, Management ExecutiveSwetan Sagar, Senior Executive

EDA Rural Systems Pvt Ltd.107 Qutab Plaza, DLF City-1Gurgaon 122002 INDIA

March 2003

Section Page

Summary i

One Introduction 1

Two Training and technical assistance 8

Three Market linkage and information 19

Four Sources of input supply 28

Five Technical support for better designs and new products 37

Six Servicing of tools and equipment 46

Seven Assistance in complying with formalities 50

Eight Cross-sector services 55

Glossary of terms 56

Annexes 58

Appendix 67

Contents

Summary of findings

Introduction

This project proposes to facilitate the BDS market for small and micro-enterprises in the leather sub-sector in the Jaipur region of the state ofRajasthan in India. These enterprises include units undertaking vegetabletanning of leather and the production of traditional leather jootis (slip-onshoes) using mostly locally tanned hides. There are a large number of vil-lages mainly in the districts of Jaipur, Ajmer and Dausa where these enter-prises exist and provide employment opportunities to a significant ruralpopulation. The leather artisans are poor and belong to a specific commu-nity called Raigar who are considered to be at the lowest level of the socialcaste structure.

There are a limited number of BDS providers that provide services to arti-sans to enable them to increase value addition in the production of leathergoods thereby increasing their income levels. Although some BDS (mainlytraining for skill development) are being provided to them through state-sponsored programmes, these do not seem to have been appropriately de-signed. In the absence of other necessary services, entrepreneurs do not usetheir newly acquired skills effectively.

Goal of the project

The goal of this project is to develop a demand driven and commercial BDSmarket for the enterprises in the leather sub-sector by involving BDSproviders from the private sector. The project mainly focuses on enterprisesundertaking jooti production and leather goods production that is verylimited at present.

The first component of the project is the BDS market assessment andfindings from the assessment are discussed below.

Assessment of BDS demand and supply

The demand assessment of BDS � undertaken by EDA Rural Systems � isbased on responses from 134 artisans from 12 villages in two districts ofRajasthan � Jaipur and Dausa. The respondents are involved in jooti-mak-ing activity and leather goods production; with a majority of respondentsundertaking the former. About 14�15% of the total number of units wascovered in each village included in the study.

In order to undertake the supply assessment study of BDS, a total of 50 BDSsuppliers � institutional private providers were interviewed.

This study shows that an artisan undertaking jooti/leather goods produc-tion has business/ transaction relationships with a number of stakehold-ers such as fellow artisans, institutions (government as well as NGOs),suppliers of different raw materials and accessories and buyers of finishedproducts. Figure 1 presents a broad overview of these relationships. With

Figure 1 Business relationship of an artisan with stakeholders

Fellow artisansSuppliers· Raw material

· Accessories· Machine and spare

parts· Lasts

Market· Village level agents· Jaipur-based wholesalers/

retailers· Delhi-based wholesalers· Buyers from other states· Exporters

Institutions· RUDA, DIC, KVIC, DCH· Banks and financial institutions· NGOs working for the sub-sector

Leatherartisan

EDA Rural Systems i

Business Development Services: Market Assessment

the help of these business relationships, artisans obtain or try to obtaindifferent kinds of BDS for their business enterprises. Some of the BDS aresupplied in an embedded form without a fee whereas some, such as mar-keting services, are based on fees or commissions.

1 Types of BDS required by artisans

Different kinds of BDS required by leather artisans involved in jooti makingcan be divided into the following six categories

· Training and technical assistance· Market links and information· Sources of input supply· Technical support for better designs and new products· Servicing of tools and equipment· Assistance in compliance with norms/formalities· Cross-sector services � adequate supply of these services, so artisans

do not consider this a very crucial issue at this stage.Categories of BDS required by artisans is given in Table 1.

Table 1 Categories of BDS required by artisans

BDS type and specific services Comments

Training and technical assistance

· Training in leather goods production· Training in producing jootis with new designs and different types of

footwear· Technical assistance in developing patterns for different types of jootis

· These services are important to develop skills for making leather goods other thanjootis or jootis with different shapes and designs.

· Artisans feel that training in leather goods production would enable them toundertake the production of goods that have a regular demand and have a largemarket than jootis. This activity would also enable them to reduce the fluctuationsin income flow that are a normal phenomenon in jooti-making

· Training in better-designed jootis is required for accessing more profitable mar-kets.

· Service is required to increase market penetration and tap profitable markets.

· Mainly for raw materials and accessories so that they can reduce the cost ofproduction and can improve the quality of products. Presently, most of theartisans use either country leather (vegetable tanned) or inferior qualitychrome leather.

· Information about all the different types of accessories that are or could be usedin leather goods and mojaris

· Mainly to introduce new designs in jootis and undertake production of leathergoods. Machines for buffing, punching, dyeing and colouring

Market link and information

· Market link with exporters, wholesalers and retailers in and outside Jaipur· Market information about wholesalers and retailers in different cities and

information about exhibitions and trade fairs organised by differentorganisations

Sources of input supply

· Information about sources of quality raw materials, particularly leather,and assistance in developing links

· Information about accessories used in mojari production· Information about accessories used in leather goods

Technology for better design and new products

· Different patterns and designs of jootis· Suitable lasts (polymer) to match different patterns· Machines

i i EDA Rural Systems


BDS and their sources Features

Servicing of tools and equipment

· Sharpening the edges of various iron tools· Servicing and repairing of machines

· Primarily for small tools used in production process and for stitching andbuffing machines

· Sewing machines are commonly used by artisans in jooti making

· Availability of other machines is restricted to a few villages that are few innumber. This service is needed in nearby locations to avoid the loss of work.The tools used by artisans require sharpening of edges once in 10�15 days.They need timely and quality service

Assistance in compliance with norms/ formalities

· Registration with DIC, DCH and other institutions that organise exhibitions/fairs for such artisans

· Assistance in obtaining loans from banks and financial institutions

· Mainly to obtain bank loans for the business/enterprise and obtaining cards toenable them to participate in state-sponsored exhibitions and fairs.

Cross-sector services

· Transport· Packaging· Telecommunication, postal/courier

· Transport services are used by artisans to move jootis to haats and other mar-kets whereas packaging is used mainly by village market agents to pack jootis incartons

· Telecommunication services are used by artisans to interact mainly with buy-ers and institutions involved with the promotion of the sub-sector.

2 Availability of services

Table 1 Categories of BDS required by artisans

BDS type and specific services Comments

Table 2 Availability of BDS


· Institutional suppliers: RUDA, DIC, KVIC, Artisan-cum- trainers and localNGOs

· On-the-job training by artisans· Fellow artisans· Exporters· Wholesalers of products

· Institutional suppliers seem to have a limited outreach both geographically andnumerically

· Outreach of other suppliers too is limited

Table 2 presents information on the availability of these services

EDA Rural Systems i i i

Summary of Findings


Market linkage and information

· Institutional suppliers: RUDA, DIC, KVIC, DCH, mainly through exhibitions and NGOs

· Fellow artisans and relatives


· Village tanneries and traders in the Jaipur haat, traders from Agra (verylimited) mainly for chrome leather

· Small and medium retail shops in Jaipur mainly for accessories

Information on sources· Fellow artisans · Exporters and wholesalers (limited)

Technical support for better designs and new products

· Institutional supplier: RUDA under the Operation Mojari programme· Artisans � mainly pattern supply, polymer lasts· Exporters, wholesalers


· Jaipur-based servicing centres

· Village-based servicing centres and village-based blacksmiths

Assistance in compliance with norms/formalities

· Institutional suppliers: DIC, KVIC, Local NGOs, district administration,DCH, RUDA, banks and financial institutions

· A few private bodies mainly assist in participating in exhibitions/fairs· Fellow artisans


· Private transporters· Government and private suppliers for telecommunication, postal and

courier services· Private shops for packaging

· The linkage of artisans with institutional as well as individual suppliers isvery low.

· The supply of the service is either stand-alone or embedded

· Very limited information about sources of supply of better raw materials, mostlyin embedded form

· Limited number of sources of supply of quality inputs

· Outreach of RUDA is limited· Services by wholesalers and exporters occasionally and mainly in embedded

form (mainly to those artisans who are in contact with exporters and wholesal-ers)

· Service is by and large available but the time involved is more than artisanswould like

· Service is usually commercial-ised and fee based· Service of village blacksmith is not of good quality and not available in many key

villages

· This service is limited to a few artisans· Sometimes fees are paid for the service· The service by fellow artisans are provided on informal basis

· Sometimes fees are paid for the service These services are obtained by a limitednumber of artisans who are very progressive

· Appears to have a very limited overall demand

BDS and their sources Features

Table 2 Availability of BDS

iv EDA Rural Systems

Figure 2 presents the levels of demand for various BDS. Analysis of the surveyresults indicates that market information has the highest demand followedby training and technical assistance, and technology for better designs andnew products. This data includes artisans who have access to the serviceand want to continue along with those who do not but would like to.

4 Significant findings from the study

Against these levels of demand for different BDS, their supply is not en-couraging and is very low for some of the services. Table 3 presents thesignificant findings of the study related to the demand-supply gap, deliv-ery mechanisms, and scope for commercialisation.

Figure 2 Levels of demand for BDS3 Demand levels for broad categories of BDS

% of respondents

Table 3 Significant findings from the study

Status of BDS demand and supply


· Despite a demand by about 66% of therespondents, only 9% managed to obtain thismainly from institutional sources.

· Provision of this service by suppliers other thaninstitutions is not regular and the service pro-vided by them most often does not meet theartisans� requirements.


· About 87% of the artisans are restricted to Jaipurand rural haats

· The number of exhibitions and fairs organisedby institutions does not meet the demand forthis service

· Due to the lack of market information artisansare compelled to sell their products only in placesthey know of but where margins are low

· Supply of this service is very lowcompared to the existing demand

· Involvement of suppliers from the pri-vate sector is almost nil

· Quality of the service provided by ex-isting suppliers is inadequate

· Only a few artisans who are in contactwith these institutions use this service

· A significant portion of artisans are un-aware of markets outside their region

· Provision of the service by suppliers other than institutional ismostly in embedded form

· The supply of the service is in stand-alone form by institutions andin the embedded form by other suppliers

· Government-sponsored training programmes seem to act as bar-riers to the potential providers from the private sector

· A significant number of artisans are willing to pay a fee in therange of Rs 300�500 for the service but are unaware of alternatesuppliers

· About 50% of respondents are willing to pay for the service

· The rest of the respondents feel that this service is presently pro-vided either free of cost or with government subsidies, so thispractice should continue in the future

Associated problems/ issues Remarks

0 20 40 60 80 100

M arket lin kag e a nd inform ation

Techno log y fo r b ette r des ign s

Trainin g & technical assis tance

Sou rce s of in pu t supp ly

Servic ing of too ls & equ ip me nt

Ass istance in co mp liance with norm s

77

67

66

45

38

16

Summary of Findings

EDA Rural Systems v


Table 3 Significant findings from the study

Status of BDS demand and supply Associated problems/ issues Remarks

Sources of input supply· This service is mainly provided through infor-

mal business relationships with fellow artisansand traders dealing in raw materials

Technical support for better designs and newproducts· About 80% of artisans work with inadequate

patterns and lasts. Supply of polymer lasts is verylow and mainly from the Operation Mojariprogramme.

· Very few artisans use machines.Servicing of tools and equipment

· Mostly adequate supply of this service

Assistance in compliance with norms· Service is available mostly from institutions but

in a limited way

Cross-sector services· Limited demand but adequate supply

· Limited working capital with artisans does not allow them topurchase raw materials from outside Jaipur

· Artisans mainly purchase raw materials from the Jaipur haatwhere they sell their products

· Artisans are willing to pay for patterns· Very few artisans can afford to purchase lasts at a commercial

rate but a good number of artisans are willing to pay at least forstitching machines

· Fee-based service· Scope for promoting the service at the village level in about 40%

of villages

· Service can be packaged with main services

· Services are provided in the stand-alone form and fullycommercialised and paid for by artisans or traders

· Quality raw material mainly for leathergoods production is not available locally

· Machines and polymer lasts donatedunder the programme are mostly ac-cessible to artisans in a limited numberof villages

· Negligible supply of polymer lasts andpatterns by providers from the privatesector

· Service is available mainly in Jaipurcity and nearby towns

· Lack of awareness among artisans re-garding the sources of the service

· There do not seem to be any problemsin obtaining these services

5 In-house capacity and perception the major BDS supplier about each service

Training and technical assistance· RUDA seems to have an adequate administrative set up and professional

expertise to co-ordinate training programmes in leather goods as well asjootis with new designs and patterns.

Market linkage and information· RUDA has a good understanding of the market for jootis and exhibitions.

It has a high level of awareness about artisans

· According to RUDA, there is a demand for training and technical assistanceamong artisans and there is a possibility of commercialising these services .

· RUDA thinks there is high demand for the service and it could be commercialised

In-house capacity (strength and weakness) of major supplier/s Perception about services

Table 4 In-house capacity and perception the major BDS supplier about each service

vi EDA Rural Systems

Summary of Findings

EDA Rural Systems vii


· Suppliers providing such services often feel that it is not their core prod-ucts, it is more as a business strategy to gain advantage over competitors

Technology for better designs and new products

· RUDA seems to have an understanding of the demand for this service amongartisans. It also has adequate linkage with institutions/suppliers to ensurethese services to artisans


· Ability to provide quality services· A strong and loyal customer base comprising leather artisans from

different villages· Publicity and service promotion by word of mouth

Assistance in compliance with norms/formalities

· DIC has a strong network of offices in the districts· Lack of adequate initiatives to create awareness among artisans about

registration procedures


· There seems to be adequate capacity among providers

· Most service providers feel that this is a very important service and could beoffered to artisans to improve the overall sub-sector and artisan�s level. A majorityfeel that there is a possibility of offering this service in stand-alone form as well andartisans do not mind paying a fee.

· RUDA has a very high demand among artisans producing mojaris· Artisans realise the importance of keeping pace with the latest designs and

patterns to gain market advantage

· Service centres do not perceive their operating environment to be competitive.They do not seem to have much understanding about the demand potential forsuch services

· According to blacksmiths, the service (sharpening of edges of tools) is also not amajor priority of artisans and they continue working even with blunt instru-ments.

· DIC does not hold any view about the possibility of commercialisation of thisservice. A majority of artisans are unaware about the need for this service

· According to them things are working fine � mainly because services are offeredcommercially and artisans pay full costs

The above table indicates that despite various supply issues with respectto some of the services, there are also some strengths in supply. However,geographical coverage and numerical outreach are limited, indicating a,by and large, weak BDS market.

6 Artisans’ priority for various BDSThe preference and priority of artisans for BDS varies significantly acrossvillages. An attempt to understand the reasons behind this preference wasmade. The following seem to be the reasons

� Levels of artisans� awareness� Exposure to markets other than Jaipur and to exhibitions/ fairs� Type of jootis being made and skill levels� Level of interaction with support and promotional institutes� Level of support services providedWhile artisans have a marked preference for one kind of BDS, they do notcompletely exclude other services from their requirements. In fact most ofthe artisans realise that all services are necessary and complement eachother. Table 4 (following page) presents the preferences for services by arti-sans in the various major villages covered by the survey.

In-house capacity (strength and weakness) of major supplier/s Perception about services

Table 4 In-house capacity and perception the major BDS supplier about each service


Udaipuria

· High level of awareness· Access to markets beyond Jaipur· Provision of machines, lasts, patterns, and market linkage under the

Operation Mojari programme· Skills to produce jootis with different patterns and designs

Savardha, Maanpura Macheri, Chaksu, Ramjipurakalan,Kishengarh Rainwal· About 15% of artisans have skills to make jootis of various designs· Nearly 20% of the artisans making mojari/jootis are aware about the mar-

ket and only a small portion of them have access to markets beyond Jaipur· The majority of artisans lack patterns and lasts to produce different kinds of

jootis

Kharkhara, Booj, Chavandia, Gudeliya, Kundal, Pipalkheda· Majority (85%) of the artisans of the village are unaware of markets beyond

Jaipur

· The majority of them lack skills, lasts and patterns to produce differentkinds of jootis

· Technology and product development � supply of patterns and polymer lasts

· Market linkage and information

· Training in leather goods production

Mojari producers

· Market access beyond Jaipur· Technology and product development � introduction of mojaris with

new patterns· Suitable lasts· Training in leather goods production

Traditional jooti producers

· Training and technical assistance � in making mojaris· Training and technical assistance � in producing leather goods· Market access � for new products after training

· Training and technical assistance � in making designed jootis or leathergoods

· Market linkage and information for new products they would makeafter training

Table 5 Preference and prioritisation of BDS

Village and features of artisans BDS (in order of preference)

viii EDA Rural Systems

7 ConclusionsTable 5 contains information on some of the market issues related to different services, market opportunities that they offer and major lessons learned fromthe BDS assessment.

Summary of Findings

EDA Rural Systems ix

Table 6 Market issues, opportunities and lessons learned from the BDS assessment

Training and technical assistance· The majority of the training programmes seem to have been poorly organised

with varying degrees of impact. Hence, artisans most often become suspi-cious of the utility and impact of such training.


· Although the demand for the service is high among artisans, products suchas traditional jootis may act as limitations to potential BDS providers.Improvements in the quality of existing products as well as the developmentof new products may be required to enable artisans to buy these services ona commercial basis.

· The existing practice of government institutions � DIC, RUDA, DCH � ofsubsidising the service acts as a barrier to the entry of potential BDS providersfrom the private sector.


· Information about sources of quality raw materials alone may not be suffi-cient to meet the artisans� requirements. This service should be coupled withinformation on their uses for various products.


· Artisans normally use only those patterns of mojaris that have assuredmarkets. However, they may be interested in innovations.

· The supply of polymer lasts at a commercial price may be a limitation as itwould require a high level of investment by artisans.

· The institutional suppliers of the service, such as DIC and KVIC, do not seem tohave given a priority to market linkages after the training. Therefore, it is importantto package the service properly to meet the expectations of the service users.

· There is scope for commercialising the training services in the future by addingappropriate features to the service and by adopting proper delivery mechanisms.

· It is obvious that there is a high demand for this service and a section of artisans arewilling to bear the full costs of participating in exhibitions and fairs.

· The provision of this service would be more meaningful if jootis were upgraded interms of patterns and designs. The traditional jootis in the existing form are onlysuitable for the rural market which seems to be shrinking. Hence training inproducing new-design jootis with different patterns and the production of otherleather goods could be the first step.

· Service provision in an embedded form is what seems to work well. This servicecould be packaged with other services such as market linkage, training and techni-cal assistance.

· There is scope for supplying lasts to match the patterns available with artisans.· There is a growing demand for mechanising some activities such as stitching the

uppers of traditional jootis and mojaris and shining the uppers of mojaris,cutting ofsoles, and finishing of jootis.

· Information on the potential uses and benefits of machines that could be used byleather artisans should precede the availability and supply of those machines.

Market opportunities and lessons learnedMarket issues

· Artisans usually travel about 20 km to obtain the service.

· Artisans are willing to pay a slightly higher price (5�10%) for these services ifdelivered at the village level.

· Wherever this service is not available, blacksmiths could profitably become estab-lished to provide the service of sharpening tools at the village level. There is asubstantial demand for this service.

· Service related to registration for exhibitions have a good demand potential andcould be offered as a separate BDS but the service related to bank loans couldprobably be packaged with some other services such as training and technicalassistance.

Table 6 Market issues, opportunities and lessons learned from the BDS assessment

Market opportunities and lessons learnedMarket issues


· Service providers prefer to be based in Jaipur/small towns where spareparts can be easily procured when needed. Even if service centres are estab-lished in villages the service time probably cannot be reduced drasticallybecause of their dependence on Jaipur suppliers for spare parts.

· Servicing of tools with machines requires an initial investment of nearlyRs25,000 and an electricity supply � irregular supply of electricity in mostvillages acts as a restraining factor.

Assistance in compliance with formalities· Services related to bank loans may be difficult to commercialise due to a low

demand level.

x EDA Rural Systems


1 Introduction

1.1 Background

The purpose of this project is to develop a market for business developmentservices (BDS) for small and micro-enterprises in the leather sub-sector inthe State of Rajasthan in India. In this state there are a number of touristattractions that draw visitors from all over the world. These tourists lookfor ethnic products from the state including leather products�traditionaljootis and other leather items.

These enterprises include units undertaking vegetable tanning of leatherand production of traditional leather jootis (slip-on shoes) that mainly us-ing locally tanned hides. There are a large number of villages mostly in thedistricts of Jaipur, Ajmer and Dausa where these enterprises exist and pro-vide employment to a significant rural population. The leather artisansbelong to a community called Raigar who are considered to be at the lowestlevel of the social caste structure. The entrepreneurs undertaking theseactivities are poor as well as underserved. Their average monthly incomeranges from Rs1,500 to Rs2,500 (US$30�50).

It is estimated that nearly 90% of the leather artisans in Jaipur and Dausadistricts undertake the production and sale of traditional leather jootis. Veg-etable or country tanning of leather, which was once a predominant activityin the sub-sector, is now limited to less than 10% of the artisans. The mainreasons for this are low returns from this activity and leather supplied tochrome tanneries offer relatively better prices.

Traditional jootis also known as Jaipuri jootis use country-tanned leather forthe sole. The upper portion of the jooti uses either chrome- or vegetable-tanned leather. The market penetration of such jootis is mainly restricted torural areas of Rajasthan. The rural market for jootis has been shrinking be-cause of the competition from low-cost polyvinyl chloride (PVC) soled shoesand slippers.

There are a limited number of BDS providers who provide services to en-able artisans to add value to the production of leather goods in order toincrease their income levels. Although some BDS (mostly training for skillsdevelopment) are being provided to them through state-sponsoredprogrammes, these do not seem to have been appropriately designed. Inaddition, in the absence of other essential services, entrepreneurs do notuse their newly acquired skills effectively.

A detailed map showing the linkages between the various stages ofproduction and marketing in the sub-sector is presented as an Appendix tothis report.

1.2 Goal

The goal of this project is to develop a demand-driven and commercial BDSmarket for enterprises in the leather sub-sector by involving BDS providersfrom the private sector. The project focuses on enterprises undertaking theproduction of jootis as well as those producing (or interested in producing)leather goods. The latter is a very limited activity at present.

The first component of the project is an assessment of the existing BDSmarkets that entail assessments of the demand and supply of BDS in thissub-sector. This report presents the findings of this BDS market assessmentof the leather sub-sector of Rajasthan.

1.3 Overview of BDS in the sub-sectorGovernment-sponsored programme interventions

In order to develop the leather sub-sector in India, UNDP in associationwith the Government of India initiated a programme called the NationalLeather Development Programme (NLDP) in a number of states including

EDA Rural Systems 1


Rajasthan. In Rajasthan, this programme is called Operation Mojari andhas been implemented by a state government organisation called the RuralNon Farm Development Agency (RUDA). To widen the market base forjootis, the programme has taken a number of initiatives includingintroduction of new patterns in jootis and mechanisation of the productionprocess by introducing machines for leather stitching, buffing, punchingand dyeing.

Operation Mojari has been implemented in 5 districts including Jaipurwhere it reaches 13 villages. Artisan groups have been formed for thepurpose of providing support under the programme. Although the overallimpact of the programme across villages varies, it has been able to create animpact in the sub-sector by providing a new dimension to the productionprocess, improving the quality of jootis and providing the producersexposure to a larger market.

Status of BDS provision to artisans making leather jootis

A preliminary observation in the sub-sector indicates that some BDS suchas skill development training, market links and design inputs are beingprovided to artisans under the Operation Mojari of NLDP and by some ofthe state agencies such as District Industries Centre (DIC), the Khadi andVillage Industries Commission (KVIC) and RUDA which strive for thedevelopment of small and micro-enterprises in different sub-sectors in thecountry.

These agencies seem to have a limited outreach in terms of the number ofartisans receiving their BDS. Besides, artisans receiving these services arenot able to utilise them efficiently and effectively in the absence of otheressential services and follow-up support. For example, the skill developmenttraining programmes in shoe production organised by DIC do not seem tohave produced adequate results because the artisans are not receiving otherservices including market support and information on sources of supply ofraw materials and accessories. Presently, such services although available

are largely subsidised and artisans are not accustomed to paying fees formost BDS.

Jootis are losing their rural market share to rubber sole rexine shoes andplastic jootis which are gaining popularity among the rural youth. In orderto expand the market for jootis, it is important for the artisans to be able toproduce innovative designs, have proper market links and obtain adequateknowledge about the sources of raw material/accessories. The level ofcompetition in jootis also opens the scope for diversifying into leather goodswhich has a larger market size. Under these circumstances, it is importantto ensure the provision of BDS as required by artisans in order to enablethem to respond adequately to market conditions.

Overall status of the Indian leather industry and future pros-pects

There has been a quantum jump in the export of leather and leather goodsfrom Rs28 crore in 1956-57 to Rs9,000 crore in 2000-01, reflecting a realincrease (inflation-adjusted increase) of a factor of 14. In recent years, since1990-91, leather exports have grown at a nominal rate of 13% per annum(translating to a real rate of growth of 4% per annum). Today, the industryranks eighth in the exports of the country.

The composition of the export of leather and leather products from Indiahas undergone a structural change during the past three decades, frommerely an exporter of raw materials in the 1960s to that of value-addedproducts in the 1990s. Finished products now constitute 81% of the totalexports of the industry, compared to a mere 7% in 1956-57.

India is endowed with about 10% of the world�s raw materials and exportsconstitute about 2% of world trade. India exports leather products to coun-tries such as the USA, Germany, the UK, Italy, Spain, Hong Kong, France,Canada, Russia, Australia amongst others.

· Leather footwear � casual shoes, sport shoes, safety boots, chappals

2 EDA Rural Systems

Table 1.1 Export of Leather and Leather Products from India

Category 1999-2000 2000-2001 % growth(million US$) (million US$)

Finished leather 239.8 381.9 59.2

Leather footwear 377.4 384.5 1.9

Footwear components 215.1 238.1 10.7

Leather garments 347.3 460.6 32.6

Leather goods 376.5 443.9 17.9

Saddle and harness 34.1 42.7 25.2

Non-leather footwear 14.1 19.5 38.1

Total 1,604.4 1,970.9 22.8

US$ rate 43.3 45.7

and sandals· Footwear components � shoe uppers, soles, sandal uppers, insole

and sock lining· Leather garments � jackets for men and women, overcoats, motor-

bike jackets, garments for children and adults· Leather goods � wallets, purses, handbags, belts, key chains, pass-

port folders, spectacle cases, hand gloves, portfolios, suitcases, har-ness and saddle items.

Although relevant data related to the demand for jootis is not available,there is a feeling among major stakeholders including exporters and sellersof jootis (mainly mojaris) that the domestic and export demands for mojarisis witnessing an increasing trend. Similarly, the demand for leather goodsand leather garments is increasing in the domestic and export markets.Table 1.1 contains information on the export performance of major leatheritems.

The above table indicates that there is reasonable growth in the export forleather goods and leather garments.

Future prospects and key opportunities

· The world trade in leather products is growing with regard to increasein demand for products made of leather.

· Domestic demand is also expected to rise with growing GDP espe-cially for products such as footwear, leather goods, etc.

· Developed countries depend on imports for meeting their requirementsfrom developing countries such as India.

· The Indian leather sector is fully geared to meet high-end consumermarkets by upgrading technology and machinery.

· The Government of India plays a proactive role to enhance the exportof leather products considering the industry�s inherent strengths andprospects.

· Keeping in view the past performance and the current trend, Indianexports from the leather sub-sector are projected over the next five yearsto reach a level of US$3.6 billion by 2005-06, envisaging a 5% share ofglobal trade.

It is in this context that EDA�s initiative in the leather sub-sector has beenundertaken. The market assessment study was divided into two segments�demand assessment and supply assessment. Detailed information aboutthe objectives and methodology used for the study is presented below.

1.4 BDS market assessment: Demand assessment

The demand assessment of BDS was undertaken to· understand the relationship of jooti-making artisans with all stake-

holders in the sub-sector and explore the provision of any BDS in suchrelationships in various forms

· estimate the demand levels for various BDS· understand the perception of artisans about the quality and availabil-

ity of BDS· understand the scope for providing BDS on a commercial basis.

EDA Rural Systems 3

Source: International Trade Centre, 2002. World Statistics - Geneva : ITC. based on calendar year datafor India‘s export

Introduction


Study approach

· Selection of villages from Jaipur and Dausa districts· Selection of artisans/respondents· Selection of assessment tools

Selection of villages

A total of 12 villages were covered from Jaipur and Dausa districts.

Jaipur

The selected villages are Udaipuria, Savardha, Manpura Macheri,Chaksu, Ramjipurakalan, Kishengarh Rainwal, Kharkhara, Booj andChavandiya

Villages in Jaipur district were selected for the assessment based on

· the total number of jooti-making and/or leather goods producing units· representation of villages from major panchayat samitis (6 out of 9

samitis)· the level of impact created by developmental interventions/agencies

in the sample villages

Table 1.2 Villages selected in Jaipur district

Villages No. of No. of Jooti No. of goodsartisans making units producing units*

Udaipuria 400 150 4Savardha 300 90 4Manpura Macheri 400 100 -Kharkhara 100 40 -Booj 100 35 -Chavandiya 150 50 -Chaksu 300 125 -Ramjipurakalan 300 100 -Kishengarh Rainwal 200 125 -

Preliminary discussions with artisans from villages in the leather clusterindicate that there are 28 villages in Jaipur with about 35 or more jooti-making units. The above criteria were used to select 9 of these villages asshown in Table 1.2. Other villages were not covered due to the small num-ber of artisans/jooti-making units there.

Dausa

Three villages selected from Dausa district are Gudeliya, Kundal,Pipalkheda. The jooti-making activity in Dausa district is restricted to 7�8villages, considerably lower than the level of activity in Jaipur district.Table 1.3 presents information on the number of units in the villages se-lected in Dausa district.

Table 1.3 Villages selected in Dausa district

Name of Villages No. of No. of Jooti No. of leather goods

artisans making units producing units

Gudeliya 125 80 -Kundal 150 50 -Pipalkheda 40 25 -

The approach for selecting villages for the assessment was based on

· a large number of production units in the villages. This will encouragepotential BDS providers to offer services because of the scale of thebusiness opportunity

· different panchayat samitis (clusters of villages). Researchers will beable to understand the variation in demand pattern of various services

· cost effectiveness in promoting BDS. Especially during the initial pe-riod when providing BDS to villages with more production units.

Selection of artisans/ respondents

The selection of artisans/ respondents was based on

· age: selection was from different age groups (18�50 years)

· levels of assistance/ support received from development organisationsand programmes, so far: artisans who have received various services

4 EDA Rural Systems

* The artisans do not produce leather goods regularly but occasionally.

from different organisations and those who have not· types of enterprise: involved in the production of jootis and/or leather

goods production· scales of operation/activity.

Based on these parameters, a random sampling approach was adopted toselect artisans from different villages. About 14�15% of the total number ofunits was covered per village and a total of 134 respondents/artisans wereinterviewed for the study.

This approach was adopted for the following reasons

· During the testing phase of the BDS demand assessment, it was foundthat young entrepreneurs were able to give better responses as com-pared to their older counterparts; although responses from older arti-sans gave a broad overview of the sub-sector.

· Artisans more exposed to development organisations and their inter-ventions were able to relate better to the study questions.

· Artisans with different scales of operation were able to identify differ-ent BDS requirements thereby providing a broader outlook of the BDSrequired.

Use of study tools

The tools used for the study were

In-depth interviews with the help of a checklist of questions (Annex 1).Artisans from different villages in Jaipur and Dausa districts of Rajasthanwere individually interviewed. The checklist was developed in order toobtain qualitative as well as quantitative information on the various aspectsof BDS.

The interviews focussed primarily on

· existing business practices for procuring materials and various ser-vices required by artisans

· delineating all transaction and business-related relationships ofartisans with all stakeholders in the sub-sector

· levels of exposure of artisans to state-sponsored programmes and otherBDS providers

· issues related to BDS supply

· understanding the usage pattern of BDS wherever required

· the importance attached by artisans to various kinds of BDS and theirwillingness to pay a fee for these services

· expected benefits from BDS and desired features

· level of demand for different BDS.

Focus group discussions with 7�10 artisans involved in the production ofjootis was organised in all the villages covered in the study. Separate groupdiscussions with artisans involved in leather goods production wereorganised. The group discussions were conducted with the help of achecklist of questions (Annex 2).

The purpose of the focus group discussions was to

· collect qualitative information on the supply status of BDS· understand the shift in the designs of jootis, the use of raw materials

and factors facilitating the shift· seek artisans� opinions on the factors hampering their business growth· understand artisans� expectations on features that BDS should cover· determine their willingness to pay for BDS

Observation of business transactions

In addition, an attempt was made to understand the exchange of informationbetween artisans and service providers/raw material suppliers byobserving actual business transactions. For this purpose, 5 visits to theJaipur haat (a small market place where jootis as well as raw materials andaccessories are traded) were made. During the visit, the exchange ofinformation was closely observed between wholesalers of jootis andartisans, and between traders of raw material and artisans. Theseobservations provided a good insight into the dynamics of the relationshipthat existed between stakeholders.

Introduction

EDA Rural Systems 5


1.5 BDS market assessment: Supply assessment

The study of the supply assessment of BDS was undertaken to understand

· the various sources of supply of services· the operational aspects of providing BDS· suppliers� viewpoint on services· the outreach of BDS

Study approach

· Selection of suppliers of BDS· Selection of appropriate tools

Selection of suppliers of various BDS

A total of 50 BDS suppliers were interviewed for the study. The sample ofsuppliers for the supply assessment study were based on

· services provided

· type of suppliers: institutions (government organisations) and NGOsproviding subsidised services, private commercial suppliers provid-ing services in embedded form and suppliers mainly from the privatesector providing services in stand-alone form

· operational base: village, tehsils (small towns near village) in Jaipurand Dausa

The demand assessment study revealed that artisans obtained BDS mainlyfrom three categories of suppliers�institutions (government agencies/NGOs) providing subsidised services, private commercial suppliers offer-ing services both in embedded form and stand-alone form. In order to get acomprehensive view of BDS suppliers, the study sample included differentcategories of suppliers.

Sampling strategy

The sampling strategy adopted was based on

· the number of institutions (government and non-government) involved

with leather artisans. It was found to be small and therefore all of themwere covered in the study.

· if the number of providers of services was large and located in thesame place (village, tehsils in Jaipur and Dausa) a random samplingstrategy was adopted to select them

· the scale of business. Suppliers providing similar services in embed-ded form with the core products (for example a retailer of jootis provid-ing inputs on design along with his core product, jootis).

· emerging commercial service providers who were included based oninformation from the demand assessment study.

Table 1.4 presents information on the number of suppliers selected for thesupply assessment study.

Note: There are suppliers who provide more than one service. For exampleRUDA provides a number of BDS to artisans.

Selection of tool

In-depth interviews with the help of a checklist of questions (Annex 3, 4and 5) were undertaken with suppliers of services. Three checklists of ques-tions were developed for three different kinds of suppliers � institutions,private commercial suppliers providing services for a fee for stand-aloneservices, and suppliers of embedded services.

Table 1.4 Suppliers selected

BDS Total number of suppliers

Institutions Private Totalcommercial

Training and technical assistance 3 4 7Market links and information 3 2 3 2 6

Sources of input supply - 1 7 1 7

Technology for better designs 1 2 3 2 4 and new products

Servicing of tools and equipment - 5 5Assistance in compliance with 5 1 norms/formalities

suppliers

6 EDA Rural Systems

1.6 Assessment of the demand for BDS

The demand for BDS was assessed based on responses from artisans. BDSwas considered to be in demand by artisans when the response was

· �I would like to obtain the service.�

· �Without this service, I would face difficulties in business and thelevel of income would be low. Therefore, I would like to have this ser-vice.�

· �If this service is made available to me, I can certainly improve mybusiness and income levels.�

· �This is the service I have been using and know of its importance; I willcontinue to obtain this service.�

BDS was considered not in demand by artisans, when the response was

· �At this stage, I am not sure about the utility of the service.�

· �I need to think more about obtaining this service.�

· �I do not want to obtain this service.�

Apart from the above responses, they also indicated, in most cases, theirwillingness to pay for services provided the services were useful and gavethe required results. However, they were unable to say how much theywould be willing to pay mainly because they had never used such servicesby paying a fee.

These services are mostly offered either in a subsidised form or an embed-ded form. However some services such as repair and maintenance of toolsand equipment are available in a stand-alone form, but artisans have topay for these services.

1.7 Limitations

· In the weak BDS market in the sub-sector, obtaining substantive infor-mation on various aspects such as the scope for commercialisation, thewillingness of artisans to pay for individual services and a compari-son of the quality of services was difficult.

· The study findings were based only on the responses from artisansinvolved in the production of jootis and not from the very small num-ber of artisans presently involved in the production of leather goods.

· Respondents were sometimes unable to comprehend the questions.

· As the findings were based on qualitative information, the judgementof researchers may be subjective. However, this was reduced to theextent possible by cross checking the responses.

· Due to lack of experience some artisans could not relate to the possibil-ity of a useful BDS being offered/supplied to them like any other ser-vice for a fee. The researchers had to make additional efforts to explainthe possibility and obtain a relevant response from them.

· As the orientation of the institutional suppliers was different�gov-ernment agencies on several occasions lacked an understanding of thecommercial approach to BDS. So it was often difficult to get their re-sponses on BDS in relation to the scope for the commercialisation ofservices.

· There were one or two representatives from each of the institutionalsuppliers covered. It may be possible that the views expressed by themwere their personal views and not those of the organisation.

· Some of the private commercial suppliers were reluctant to discuss thesituation openly for fear of revealing commercial information to anexternal agency.

The levels of demand estimated for various services reflect the total

demand including those that are already being met to some extent in the

sub-sector.

Introduction

EDA Rural Systems 7

2.1 Introduction

The BDS demand assessment study indicates that 66% of the respondentswould like to obtain various kinds of training and technical assistance for

· Training in leather goods production

· Training in producing jootis with new designs and patterns or differenttypes of footwear

· Technical assistance in developing patterns for different types of jootis

is apparent that the demand for the services related to training in leathergoods is very high whereas the services related to technical assistance indeveloping patterns for jootis have a lower demand. The details arediscussed in this section.

2.2 Training in leather goods production

This study suggests that there is a high demand for this service in the sub-sector. This service seems to be a major priority among artisans whoselivelihood is solely dependent on making traditional jootis. However,artisans from the older generation (above 60 years of age) are not keen toacquire skills for a new set of products. They feel it is difficult for them toacquire new skills at this stage of life.

Expected benefits

· Artisans mainly producing mojaris who want an additional source ofincome. They can undertake the production of leather goods in casethere is a slack in the market for mojaris in the future.

· Artisans who are involved in the production of traditional jootisperceive it as an alternate livelihood which could provide them with abetter source of income as compared to the earnings from traditionaljooti making.

2.3 Training in producing jootis with new designs and patterns for different types of footwear

The major demand for this service is from artisans who have not beenaffected by the benefits of the Operation Mojari programme. These artisansfeel that mojaris have a relatively better market potential than traditionaljootis. They also feel that familiarity with the production of traditionaljootis will easily help them acquire the skills needed to produce mojaris.

2 Training and technical assistance

Figure 2.1 Demand levels for training and technical assistance

Figure 2.1 shows the demand levels of these individual services. Out of66% of the total respondents who would like to obtain services related totraining and technical assistance; 80% would like to obtain service relatedto the training in the leather goods production, 45% would like to obtaintraining in new designed jootis and footwear and only 8% would like servicerelated to the technical assistance in developing patterns for jootis. Thus it

8 EDA Rural Systems

0

20

40

60

80

100

Tra in ing in leather goods

Tra in ing in producingnew des igned

jootis / footwears

Technica l ass is tancein develop ing patterns

for jootis

80% (53% overall)

45% (30% overall)

8% (5% overall)

Expected benefits

· Able to compete in the existing rural market

· Attract more rural customers particularly the youth with the help ofnew designs

· Access to a more profitable market beyond rural Rajasthan

2.4 Technical assistance in developing patterns fordifferent types of jootis

This service is in demand by those artisans who produce mainly mojarisand have links with exporters, and Jaipur-based wholesalers and retailers.In order to process their orders, these artisans first develop the patterns ofjootis.

As these exporters/retailers/ wholesalers have strict specifications for theirsamples, the artisans have to experiment continuously to develop aparticular pattern. Such experimentation requires time as well as material.The non-availability of a sufficient variety of lasts with the artisans furtheraggravates the problem. Sometimes artisans adjust the lasts available withthem to suit the needs of the patterns to be developed.

The demand for this service is based on the artisan�s confidence in hisability to convert this design capability into value addition in the market.Most artisans are �market takers� rather than �market makers�.

Expected benefits

· Ability to produce patterns so that the orders of exporters/retailshowrooms/wholesalers can be easily processed.

· Saving of time and material needed in the development of patterns.

2.5 Sources of supply of this service

In the leather sub-sector, services related to training and technical assistanceare available through institutional suppliers, suppliers providing servicesin the embedded form and the supplier providing training for a fee.

Institutional suppliers

· Rural Non Farm Development Agency (RUDA)· District Industries Centre (DIC)· Khadi and Village Industry Commission (KVIC)

Suppliers providing services in the embedded form

· On-the-job training by artisans· Exporters· Fellow artisans

Supplier providing training for a fee

· Artisan-cum-trainer

RUDA

RUDA is one of the leading government agencies involved with leatherartisans that provides training in

· the production of leather goods

· the production of jootis with new designs and patterns of the uppers ofmojaris

Training in the production of leather goods

RUDA has organised or sponsored about 15�20 training programmes sofar in the production of leather goods in Rajasthan.

Delivery mechanism

For organising training in the production of leather goods, RUDA engageslocal NGOs or other organisations that have strong community links. Theseinclude Mata Sri Gomati Devi Foundation (MGDF) and EDA Rural Sys-tems Pvt Ltd. (EDA) that have organised training in leather goods fundedby RUDA. The training is organised in the artisans� villages for a durationof 2�2.5 months (usually 4�5 hours a day).

The selection of trainees is the responsibility of the training organisation.In most cases, the trainees are selected in meetings with artisans of thevillage where the training is to be imparted. Willingness to learn skills and


EDA Rural Systems 9


then to use those skills for production is the main criterion . The progress ofthe training is monitored by the NGO and RUDA by paying regular visitsto the venue and interacting with the trainees and trainers.

Features

· Training is conducted with the help of a trainer who has experience inthe production of leather goods. Usually the master craftsperson actsas a trainer.

· Skills are imparted in making tumblers, purses, ladies bags, wallets,and key cases of different sizes. Cutting patterns of various leathergoods are also taught. Knowledge of different kinds of leather hidesand accessories to be used in producing the goods is also imparted.

· Artisans are usually paid a stipend at the end of the training and/orprovided some tools.

Training in producing jootis with new designs & patterns

Under the Operation Mojari programme, RUDA extended support to arti-sans in 13 villages in Jaipur district to upgrade their skills in producingmojaris.

Delivery mechanism

In the initial phase of Operation Mojari, artisans were formed into villagelevel groups in different parts of Jaipur district. Patterns of mojaris alongwith polymer lasts were provided to them, but leather for the sole andcotton thread for stitching uppers and soles of jootis were not provided.RUDA paid artisans Rs120 for each pair of mojaris produced.

Features

· Artisans were given a first-hand experience of making mojaris andalso explained the use of polymer lasts for standard sizing and left�right foot distinction.

· Trainers in the Operation Mojari programme closely monitored thetraining by making frequent visits to the individual trainees and pro-viding appropriate advice.

Perception of RUDA

According to RUDA, there is a demand for training and technical assis-tance of artisans in leather goods and better designed jootis. However,artisans hesitate to take this training because of a lack of understandingmarket dynamics.

Strengths

· Appears to have an adequate administrative set up and professional expertise to co-ordinate trainingprogrammes in leather goods as well as making jootis with new designs and patterns

· New patterns and designs along with suitable polymer lasts are provided to artisans supplying mojaris· A systematic approach, in a few cases, in conducting training in leather goods (Rajgrah in Alwar district

of Rajasthan). Assistance was taken from professionals to design a suitable training programme afterassessing the existing skills of participants.

· Besides training in basic skills�cutting patterns and stitching leather�participants trained on newdesigns developed by professional designers based on the latest trends in designs of leather goods

Weaknesses

· Inadequate follow-up related to market exposure and links after training programmes but attemptedto ensure market linkages to some of the artisan groups.

· Master craftsperson as trainer (artisan communityor other community); preference for those artisansto be master craftspersons who have undergonesome of RUDA�s previous training programmes

· Professional designers� (in some cases) assistance,mainly for leather goods, in providing design inputduring the training programme

· Local NGOs funded by RUDA to arrange traininglogistics

Rural Non Farm Development Agency

In-house capacity Links

10 EDA Rural Systems

RUDA also feels that there is the possibility of commercialising these servicesprovided artisans are convinced of their utility. Artisans have a markedpreference for a stipend because of the a tradition of such a provision formany years. Besides, the stipend compensates them for the loss of incometo some extent during the training period. These services should be madecommercial and artisans should be motivated to make a contribution.

DIC

DICs are government bodies that work for the promotion of small and micro-enterprise industries in most of the districts of the country. DIC Jaipurprovides training to two kinds of leather artisans among trainingprogrammes in other sub-sectors

· Training in leather goods

· Training in the production of shoes

Delivery mechanism

DIC organises training in villages where a substantial number of leatherartisans reside. For this training, DIC officials call a meeting of artisanswith the help of panchayat officials and select artisans for training. Thetraining is imparted in the villages for 2 months in a batch size of 25�40.

Features

· Training conducted with the help of a footwear technologist

· Artisans paid a monthly stipend of Rs300 and tools worth Rs 800-1,200 at the end of training

Perception of DIC

Every year DIC organises training in some of the villages and finds that asignificant number of artisans are willing to attend. Thus, there exists ademand for this service among artisans. The DIC feels that a stipend givento trainees acts as an incentive to them. As most artisans are poor, it feelsthey may be unable to pay a training fee.

KVICKVIC is a government body working for the promotion of village industries.It provides training to leather artisans in the production of leather shoes/slippers.

Delivery mechanism

For the training, KVIC selects artisans from a particular village and impartstraining in the village in a batch of 15�20. The training continues for 2�2.5months.

Weaknesses

· Outreach in villages through a network of panchayat level offices. The network of DIC officesdoes not seem to be optimally used to develop an understanding of the training demands ofartisans and designing appropriate training programmes.

· Training is treated as an isolated intervention and does not seem to focus on providing marketlinks after the training. As the DIC very often lacks interface with markets, relevant trainingprogrammes based on the prevailing market conditions do not seem to be organised.

· A master craftsperson is paid a stipend of Rs1,500 per month. This is a lowfigure and might affectthe quality of training.

· Footwear technologists

· Master craftspersons train artisans in leather goods (leathertoys). Master craftspersons to train artisans in leather toysare often invited from Indore, which is a well-known centrefor producing leather toys.

Distric Industries CentreIn-house capacity Links

EDA Rural Systems 11



Feature

Stipend paid to artisans at the end of the training

KVIC organised a few training programmes for the production of shoes inDausa district a few years ago. Presently, training in the leather sector is not apriority. KVIC could not comment on any aspects of the service.

On-the-job training by artisans

Delivery mechanism

A few artisans provide on-the-job training (mojaris as well as traditionaljootis) by employing other artisans. Initially, these artisans are given smalltasks such as polishing, peeling and cutting leather. As they acquire skillsthey slowly graduate to stitching soles and uppers together as well as inpreparing the uppers of jootis. They work in a shed provided by their em-ployer, which helps control the quality of the products. When the expertiseof the trainees reaches a satisfactory level, the employer allows them to takejob work even to their respective homes with mutual consent.

Features

· Artisans are paid on the basis of job work which is fixed depending onthe prevailing rates in the village

· Knowledge of markets, sources of accessories and leather is alsoimparted

Perceptions of artisans

Artisans providing on-the-job training in making traditional jootis feel thatthe demand for this service is not much because younger artisans are notvery inclined to producing jootis and work only because of the lack ofoptions.

By contrast, artisans involved in the production of mojaris feel that suchtraining has a good demand potential. A large number of artisans haveacquired the skills to produce mojaris through this method. Fellow artisansconsider it a social taboo to charge for such services from their relatives/friends.

Exporters

Delivery mechanism

Exporters collect information about skilled artisans either through RUDAor contact directly at the Jaipur haat. Representatives of exporters visit theJaipur haat and select suitable artisans by observing their quality of workand interacting with them. If artisans agree to work with the exporter, theyare then trained by the exporter to meet the specification of orders.

Exporters provide training to artisans in the production of jootis but in avery limited way as they train artisans to suit the specific orders they process.The duration of the training is limited and just enough to initiate the artisaninto the production process.

Features

· Training in cutting sole patterns for the upper, adjusting lasts withjootis, finishing and stitching the soles with the uppers, only if re-quired

· Duration of training is 5�7 days· Artisans are given job work at the end of the period· Uppers and lasts provided by exporter· No service fee charged from artisans


Strengths

· Substantial knowledge of production processdue to involvement with it

· Better opportunity to learn various activitiesbecause of the large scale of operation

· Acquiring high levels of skill in an informalsetting

· RUDA· Other artisans

On-the-job training by artisans


Perceptions of exporters

Exporters feel that artisans have the basic skills for making jootis/mojarisbut they do not put much emphasis on the quality of the end product. Inorder to tap the export market, it is essential to improve quality. Artisansfeel that by receiving services related to improvements in the quality of theirproducts, they will be able to penetrate beyond the markets of Rajasthan.

Exporters also feel that there is the possibility of offering training on aspectsof quality in a stand-alone form. However, artisans would be willing to payfor such services only if they are assured of regular export orders.

The exporters also indicated that since most of the orders are time bound,delays in shipment or sub-standard products lead to substantial losses/rejection.

Delays occur mainly due to the additional time spent on training artisansto maintain quality and due to the low mechanisation of productionprocesses. Exporters are open to the idea of hiring artisans who are welltrained at a relatively higher price.

Fellow artisansDelivery mechanism

Artisans seek the support of fellow artisans in acquiring the required skillsneeded to produce mojaris. They approach their relatives/friends makingmojaris and learn the process of mojari production mainly through informaldiscussions. If required, artisans also work under the guidance of theirmojari producing relatives/friends for a few days.

After acquiring the desired level of skills, these artisans undertake mojariproduction on a trial basis in their respective villages. In case they face anyproblems, they re-establish contact to obtain further assistance from fellowartisans.

Features

· In order to initiate the production of mojaris, artisans also get patternsand polymer lasts from their relatives/friends

· This relationship helps them in acquiring knowledge about markets,accessories and other technical aspects related to production

· No fee (usually) is charged either for acquiring skills or for providingpatterns and lasts

During the demand assessment study, the practice of imparting trainingby fellow artisans on the basis of a relationship was found in all the vil-lages. It seems that a substantial number of artisans acquire skills in pro-ducing mojaris in this way. An illustration of the process is provided inBox 2.1 on the next page.

Artisan-cum-trainer

Artisans from the community often act as trainers to provide training inleather goods on behalf of organisations such as RUDA . Theseorganisations pay the artisans to work as trainers in a particular trainingprogramme organised by them.

There are 3�4 such trainers mainly from Udaipuria village of Jaipur dis-


Exporters

Strengths

· Have the required in-house capacity toprovide training

· Only skilled artisans are selected to guidethem to undertake their job work in abetter way

Weakness

· Skills imparted are not comprehensive andoften restricted to exporters� requirements

· Problem identifying skilled artisans

· RUDA providesinformation aboutskilled artisans indifferent villages

· Designers providedesign inputs




Chavandia village in Jaipur has about 150 leather artisans and 50 unitsinvolved in the production of jootis. Three years ago, artisans in this villagewere making traditional jootis with designs made out of strips of leatherjoined together in the form of a heart stitched on the uppers. Two artisansof the village came across jootis in the Jaipur haat made by artisans ofKesupura village with different patterns of the upper.

The pattern of the upper of these jootis resembled a mat in which strips oftwo different colours of leather were woven together. Impressed by thisdesign, the two artisans of Chavandia village approached the artisans ofKesupura village at the Jaipur haat to learn the skills. They were given ashort discourse on producing such jootis at the haat.

The artisans bought one pair of that type of jooti and attempted to make iton their own using the sample piece. They achieved partial success in thefirst attempt. On the next visit to the Jaipur haat, they met the artisans ofKesupura village again and sought their feedback on the jootis prepared bythem. In this way, they acquired the required skills for making jootis withthis design.

Gradually, they started producing such jootis in their own village. Slowly,other artisans from Chavandia village started approaching the first two tolearn their skills. The skill was disseminated through informal discussions.The extent of dissemination can be gauged from the fact that now nearly60% of the artisans have shifted production from traditional jootis to thiskind of jooti.

trict. None of them have explored the possibility of training artisans ontheir own. Due to their perceived inability to develop a market for training,they continue with jootis/leather goods production and work as trainersonly when hired by institutions. One case of a skilled artisan with plans tobecome an independent trainer is presented in Box 2.2.

Perceptions of artisan-cum-trainers

As trainers, they feel that there is a substantial demand for the service in the

Box 2.1 Training by fellow artisans in the production of jootiswith new patterns

Box 2.2 Artisan-cum-trainer

Prakash, a highly skilled artisan from Udaipuria village in Jaipur district, hasbeen engaged as a trainer for a number of RUDA�s programmes. As RUDArequires groups of 15�20 artisans, to organise a programme, he finds itdifficult to mobilise and motivate sufficient numbers in a viable manner totake the training and, thereby, to enable him to earn a better income as atrainer.

For this reason, Prakash is working towards becoming an independenttrainer in the future. After training in the leather goods productionprogramme organised by EDA in the village of Udaipuria, he acted as atrainer for a women�s group in Rajgarh on behalf of RUDA. His six-monthtenure as a trainer gave him the opportunity to interact with an expertdesigner to enhance his skills as an independent trainer.

PlansPrakash plans to submit proposals to various agencies involved with leatherartisans to obtain funds to work as an independent trainer. His firstassignment as an independent trainer will be to impart training to a groupof 20 artisans in the village of Alooda in Dausa district. MGDF is helping himto obtain funds under the government�s District Poverty InitiativesProgramme (DPIP). Presently, he is also exploring the possibility ofimparting training in Gudeliya village (Dausa) with support from EDA bycharging a fee.

Internal capacity and constraintsPrakash feels that market links should be an integral component of suchtraining programmes because artisans judge the efficacy of the programmebased on positive responses from the market. Presently, he wants to remainassociated with organisations such as RUDA because of his inability to providemarket links to artisans trained by him.

Prakash feels constrained because of the lack of rapport and interactionamongst artisans from different villages.

leather sub-sector. They also feel that artisans would be willing to pay forthe service if market links after training were provided. Market links shouldbe an integral component of the service.


Strengths

· Exposure to latest designs and market trends

· Adequate skills in imparting training in leather goods production

Weakness

· Excessive dependence of the average artisan on institutional suppliers to provide training· Lack of financial resources and adequate skills to undertake promotional activities and become established

as independent trainers· Inability to mobilise artisans and motivate them to pay fees.

· Association with RUDA, NGOs and also witha few designers in some cases

Supplier Number Duration of interaction Contents/nature of interaction

RUDA 20�25 artisans per training Extensive training for 2 months Staff of RUDA, an NGO partner and a masterand around 2�3 programmes per year trainer provide training

Some artisans are provided assistance in participatingin exhibitions after the training programme

DIC Same as above Usually, the training duration is around 15 days Master craftsperson and a footwear technologist(Not as effective as RUDA)

Exporter 15�20 artisans at the time of a job order 7 days to a month depending on the type of Training on quality parameters and finishing providedproducts by in-house trainers

Fellow 4�6 artisans (on the job)artisan 1�2 artisans (informal) Minimum of 1 year for on- the-job training and Basic skills

1�7 days (2�3 hour/day) for informal trainingdepending on convenience

2.6 Interactions of BDS suppliers with artisansInformation on the number of artisans a supplier interacts with for the service and the duration of interaction and contents/nature is givenbelow.


Artisan-cum-trainer

Interactions of BDS suppliers with artisans




2.7 Supply status

Availability includes outereach, quality and demand of services. Table 2.1 describes the overall outreach of the various training programmes in the sub-sector organised by institutional suppliers. The quality of the services offered mainly by institutional suppliers has been found to be inadequate byrespondents. Table 2.2 provides details about the quality of services being provided by different suppliers. Table 2.3 indicates the likely features and deliverymechanism related to demand.

Table 2.1 Outreach of services related to training and technical assistance (all suppliers taken together)

Service Geographical outreach Numerical outreach

Training in leather goods production · Out of 12 sample villages training in leather goods has · The study indicates that only 7% of the respondentsmainly by RUDA and DIC been organised by RUDA only in 2 villages have attended training in leather goods production.

Training in producing designed jootis · Out of 12 sample villages, 6 have had access to this · Only 6�7% of respondents have attendedand footwear mainly by RUDA, DIC service training in shoe making.and KVIC · Only 11% of respondents have undergone training

in mojari production under the Operation Mojariprogram.

Training in developing patterns of · The demand for this service is very limited and it is not · Negligiblejootis available to artisans in any form.

Suppliers Comments on delivery Impact of training

RUDA · Respondents who attended the training sponsored by · Artisans have shifted to mojari production in aRUDA do not find any problems. number of villages but several did not because

of inadequate market links· Proper identification of participants by NGOs who · Due to a lack of adequate marketing support, the

monitor the programme artisans who received training in leather goodsproduction will not ta�ke up regular production

DIC · Emphasis on quality is less as the number of · Training provided in four villages but none of thetraining programmes is more important, hence artisans took up subsequent productiondoes not address artisans� requirements

· Inadequate methods of selecting trainees � without · Low levels of skills acquired by a majority of theassessing the genuine willingness of trainees artisans

· Lack of effective monitoring of the training programme

· No follow-up services such as market links

Table 2.2 Quality of the training


Table 2.2 Quality of the training



Suppliers Comments on delivery Impact of training

KVIC · Trainers not very suitable · Artisans do not seem to have undertaken shoe productionin any of the villages where training was organised

· The training is not monitored properly and does not · Lack of adequate marketing support from KVIC

happen for the entire stipulated duration · Low level of skill acquired by artisans

On-the-job training · Adequate delivery of the service · Adequate level of skills acquired but low outreach due tolimited spread of mojari production

Exporters · Adequate delivery of the service · High level of skill acquired but limited opportunities

Table 2.3 Features and delivery of the service

Service Features of the service Delivery machanism

Training in production of · Basic skills of cutting and stitching leather, making various · Group size: 15�20leather goods utility products such as bags, wallets and applying designs · Venue: Village

through punching, dyeing and embroidery · Duration: 3�4 hours per day for 2 months· Knowledge of leather and accessories along with its source · Enrolment: Only interested artisans. Every artisan should

for procurement be made aware of the programme· Knowledge of potential markets · Monitoring: Regular monitoring by the supplier institu-· Administration by an experienced trainer tion to ensure proper delivery � if the training is being

provided by hiring a craftsperson or external trainer(s).· Market linkage after training

Training in producing · Training in cutting the uppers and the sole of jootis with · Group: 15�20new-designed jootis the help of patterns, stitching the sole and the upper of jootis, · Venue: Village

use of polymer lasts and creating designs on the upper of · Duration: 3�4 hours for 7�10 daysjootis · Regular monitoring

· Knowledge of accessories used in the new-design jootis · Market linkage after training· Knowledge about markets· Administration by qualified artisans with knowledge of

various designs

Technical assistance in · Training in making patterns from the samples of jootis · Service on an individual basis by expertsdeveloping a pattern ofthe jooti

2.9 Conclusions

Market issues

· The majority of the training programmes seem to have been poorlyorganised with varying degrees of impact. Hence, artisans most oftenbecome suspicious of the utility and impact of such training.

· There is a lack of further follow up for market links and this limitscommercial production after training.

· Most of the institutional suppliers provide a stipend of about Rs300�500 per month in order to motivate artisans to enrol for the trainingprogramme. Many artisans want this practice to continue as they donot otherwise earn incomes during the training.

Market opportunities and learning

· Nearly 50% of respondents have expressed an interest in being trainedand are even willing to pay Rs300�500 for the training services.

· The institutional suppliers, such as DIC and KVIC, of the service donot seem to have given a priority to market linkages after the training.Therefore, it is important to package the service properly to meet theexpectations of the service users.

· There is a scope for commercialising the training services in the futureby adding appropriate features to the service and by adopting properdelivery mechanisms.

· The service could have the following features:

· Facilitating participation in exhibitions/fairs in and outside Jaipur

· Assistance in complying with norms for attending exhibitions

· Market exposure

· Knowledge of the sources of supply and links for procuringaccessories and tanned leather

· Support in establishing market linkages.

2.8 Extent of commercialisation

Table 2.4 presents the extent of commercialisation of this service.

Source of supply Extent of commercialisation

Table 2.4 Extent of commercialisation

· RUDA, DIC, KVIC · Cost of service borne by the institutions· Artisans paid a stipend and tools, in some

cases, after the training programme

· On-the-job training · Commercial: no public money involved

· Exporters · Commercial: exporters meet the training cost

· Fellow artisans · Services are provided based on informalrelationship and without any obvioustransactions; unsubsidised



3.1 Introduction

The BDS assessment study indicates that about 77% of the respondentswould like to obtain market-related services through

· development of linkages with markets and buyers of final products

· market-related information.

Figure 3.1 shows the demand levels of these services. Out of the 77% of thetotal respondents who would like to obtain services related to marketlinkages and information; 69% would like to obtain market linkage servicesand 53% would like market-related information. Thus both types of servicesappear to have good demand potential.

plying to village wholesalers that direct links with retail showrooms inJaipur will fetch them better margins; while artisans supplying to retailshowrooms in Jaipur feel that the linkage with Delhi-based wholesalerswill assure them better sales. Artisans willing to take up training in leathergoods production and new-designed jootis perceive market links as anintegral component of the training.

Expected benefits from the service

· Artisans would have greater opportunities for value-added productionand would thus expect to earn higher incomes

3.3 Market information

About 40% of the respondents would like to obtain market information onexhibitions and trade fairs. Nearly 20% of the respondents would like toobtain only information about wholesalers, retail showrooms in big andmetro cities so that they can develop market links with them. These artisansmainly involved in making mojaris feel capable of developing links if theyare provided with the required information. Artisans producing traditionaljootis would also like to have this service but they are often not sure aboutthe saleability of their products in these markets.

Expected benefit

· Attending exhibitions will enable them to sell their products more easilyand provide them with an understanding of new markets, designs,customers� preference and wholesalers of the product from differentplaces.

The following section discusses market channels and markets whereartisans sell their products before discussing the availability and quality ofmarket linkage services.

3 Market linkage and information

Figure 3.1 Demand for market linkages and market information

3.2 Market linkage

About 69% of the respondents would like to have market links beyond theirexisting market channels. There is a common feeling among artisans sup-

0

20

40

60

80

100

Market linkage Market information

69% (53% overall)

53% (41% overall)



3.4 Market channels and markets

The Jaipur haat

This is one of the main market channels for a majority of jooti producers.The Jaipur haat is held every Saturday in Jaipur city although activitiesstart from late Friday night onwards when artisans start occupying theirspace. Trading activities take place during midnight and the early hours ofthe morning. The haat is not limited to jooti producers/wholesalers onlyfrom Jaipur district. They come all the way from Dausa, Alwar and Ajmerdistricts. Similarly, traders come not only from within the city but also fromBharatpur, Alwar and even Delhi. However, the majority of buyers of jootisare wholesalers from Jaipur city.

Mostly, traditional jootis are traded in the haat. Shoes and slippers withPVC soles are also traded in the haat but in relatively small quantities ascompared to jootis. The overall volume of trade in the haat is not readilyavailable. Discussion during the assessment suggests that each bigwholesaler buys about 200�250 jootis from the weekly haat.

The purchase price of jootis varies depending upon the buyers, bargainingpower and types of jootis and also the volume of purchase. On average theprice per traditional jooti is around Rs80 with Rs10�15 more or lessdepending on the supply and demand situation on a particular day, andpeak and lean seasons.

Jaipur-based wholesalers

There are some 15 wholesalers of jootis based in Jaipur.These wholesalersprocure jootis· from artisans in the Jaipur haat· from artisans directly supplying to their shops in Jaipur· by placing orders with artisans in villages· from wholesalers from other districts of RajasthanOut of these, the first two methods are the most common.

Jaipur-based retailers

There are 50�60 exclusive retail shops for jootis (traditional and mojaris) inJaipur. These shops are located in Ghatgate, Ramgunj, Bapu Bazar, BadiChaupad and Station Road areas of Jaipur These retail shops procure jootisin two ways either

· directly from artisans; or· from Jaipur-based wholesalers

About 70% of jootis are procured by the first method. There are two types ofartisans who supply to these retail shops.

· Artisans who supply regularly based on retailers� orders

· Artisans occasionally visiting retail shops to sell their jootis

As the design of the jootis varies slightly across villages and are specific toa village, retailers associate the designs with jooti producers from differentvillages. One or two producers of jootis from different villages supplyregularly to these retail shops. This supply is based on an order placed byretailers in terms of the number of jootis, sizes and designs. Usually anartisan supplies about 20�30 jootis per week to a retailer.

For the jootis that are supplied regularly, an artisan gets a fixed price agreedbetween a retailer and an artisan. The price is determined by the prevailingprices of such jootis in the market. Once a price is fixed, retailers procurethem at the same price irrespective of any fluctuation in the market priceand irrespective of festivals or seasons. Such contracts last as long as bothparties are satisfied with each other.

The payment by retailers to artisans is highly irregular and only partpayments are made. For example, 50�70% of payments are made at thetime of supply and the balance in the second transaction but again somebalance is withheld by retailers. As a result, the artisan effectively financessome of the business of the retailer.

As wholesalers stock various designs of jootis, retailers procure from them


in case they need a particular design. Retailers usually pay in instalments.The amount of each instalment is fixed by mutual agreement. No interest is,however, charged for the period over which payments are made; the periodmay vary from a week to a month.

Retailers prefer to keep a profit margin of 25% on the cost price. The saleprice varies depending on the type of customer; in most cases customersresort to bargaining. This in-turn affects the profit margin, which could bein the range from 5% to 25% for a pair of jootis. The average sales turnoverof these retailers is about Rs2,000 per day during the lean season and aboutRs6,000 per day during the peak season.

Village agents

There are around 20 village agents in the villages of Udaipuria, Savardhaand Ramjipurkalan in Jaipur district who procure jootis from artisans di-rectly and sell them either at the Jaipur haat or supply to retailers and/orwholesalers at various places.

In Udaipuria village where mojaris are made, village agents are morecommon, efficient in their functions and have access to the Delhi market.Box 3.1 (following page) provides information on village agents inUdaipuria.

In Savardha, the village agents do not limit themselves to a few artisans forjootis. Orders are mainly obtained from village-level retailers based invillages of Rajasthan and bordering areas of Gujarat. Once an agent obtainsan order, he looks for artisans who do not have too much work during thatparticular week and places an order with them. No advance payments aremade to artisans for processing this type of order.

In Ramjipurkalan, there are a few part-time village agents. They sometimesprocure jootis from fellow artisans at a margin of Rs5 per jooti and sell themto traders at the Jaipur haat or Jaipur-based retailers/wholesalers.

Exporters

Exporters supply the uppers of jootis which are stitched to the soles madeby artisans. Artisans are paid as per the cost of material used in the soleand labour charges. The cost of each pair of jooti is predetermined by artisansand exporters based on labour charges and materials provided by theformer. This type of association between exporters and artisans is not on aregular basis and based on specific orders. Artisans are contacted onlywhen the exporter has a particular order.

The following table presents information on the proportion of respondentsusing various marketing channels for the sale of their products. It incorpo-rates multiple responses from individual artisans

Source % of respondents

Delhi through village agents 19

Jaipur haat 87

Other local village haats (Dausa, Mahua) 5

Jaipur retail showrooms/wholesalers 15

Exhibitions and fairs 8

NLDP (funded by the UNDP) 2

It is evident from the table that most of the artisans use the Jaipur haat asthe main market channel because it is a very big market for selling tradi-tional jootis. Mojaris are largely sold in other markets including Delhi.Accessibility of the Delhi market through village agents is available to al-most all the artisans in Udaipuria village and to some of the artisans inMaanpura Macheri village who are producing mojaris. Mojari producersin other villages who do not supply to the Operation Mojari programmesell their jootis to Jaipur-based retailers/wholesalers. The number of arti-sans associated with UNDP-NLDP is gradually decreasing because of thestrict quality checks, which according to the artisans, are arbitrary.




Box 3.1 Village agents in Udaipuria

Under the Operation Mojari programme, a few artisans from Udaipuria got a chance, afew years ago, to attend an exhibition in Delhi. The exhibition also provided them anopportunity to interact with Delhi-based wholesalers and based on this interaction theartisans realised the demand potential for mojaris. Some of the artisans started visitingthe Delhi-based wholesalers and selling mojaris to them. As a result of the increasingdemand for mojaris in Delhi over a period of time, some of the artisans became regularsuppliers of mojaris to these wholesalers and even became village level marketingagents. There are now about 10 such agents, all of whom belong to the artisan community.

Working methods

Village agents obtain orders for jootis from Delhi-based wholesalers and contact artisansin the village to place orders with them. Artisans are provided with some advancemoney to process the order, often equal to one-fourth of the total value of the order.However, agents generally do not provide any advance to those artisans who makeinferior quality jootis. Once the order is complete, village agents supply jootis to Delhi-based wholesalers. The wholesalers normally make immediate payments to theseagents after receiving thegoods. After returning from Delhi, village agents make thebalance payments to artisans in the village. Most of the time artisans receive paymentswithin 3 days of supplying jootis to agents. The combined sales turnover of these villageagents to Delhi is about 5,000 pairs of jootis per week.

Each village agent has a contact with one or two Delhi-based wholesalers to whom theysupply on a weekly basis. All agents hire a truck to go to Delhi and the cost oftransportation is shared by them in proportion to the number of cartons of jootis theytransport. Agents have an informal association with village artisans to get their ordersprocessed. This association is not binding on any artisan. The artisans prefer to work fora particular village agent until payments become irregular. A village agent often tries toattract skilled artisans, currently not working for him, by offering some extra money(Rs 3-5 per pair of jootis). However, the incidence of shifting to another agent for extramoney is very rare�probably due to social reasons.

Village agents claim that they earn a margin of Rs5 per pair of jootis. Payments made todifferent artisans for making similar pairs of jootis vary. This variation is based on thequality of jootis made by the artisan. For a particular jooti that is supplied to a Delhi-based wholesaler at the cost of Rs75 per pair, payment to artisans could vary betweenRs60 and Rs72.

3.5 Market linkage and related information

Details of the services are discussed below

RUDA

As indicated above, RUDA provides services related to marketlinkages and market information. RUDA sends information aboutexhibitions, mainly venues and dates by post to artisan groupsformed under the Operation Mojari programme. Artisans are ex-pected to bear the cost of food, transportation of goods and othertravel expenses. It provides them with free stalls for the exhibi-tions. RUDA is either invited to or buys stalls at exhibitionsorganised across the country and usually pays nearly Rs10,000per stall.

Market access under Operation Mojari

Artisan groups, under the Operation Mojari programme, areprovided with market access as well as other services. They aresupplied with the upper of jootis by UNDP-NLDP but use theirown leather and other materials required to prepare the sole.Artisans are paid on the basis of labour charges and cost of thematerials used. Depending upon various patterns, they are paidbetween Rs60 and Rs100 per pair.

An artisan normally supplies about 30 jootis per week. Artisanshave to pay Rs5 per pair to UNDP-NLDP for the finishing of thejootis. The payments are made by cheque a week after the supply.Strict quality control is observed and an inferior quality of jootis isrejected. Of the rejected jootis, the cost of the upper is deductedfrom the total payment made to the artisans.

Artisans feel that the criteria for rejection are vague and they arenot aware of these criteria. They find it extremely difficult to sellthe rejected jootis in the market and usually sell them at a loss. Thenumber of artisans supplying jootis to UNDP-NLDP is rapidly


reducing due to

· vague reasons for rejection and also the increasing rates of rejections

· irregular payments

The table above summarises RUDA�s work in promoting market links inthe sub-sector

Perception of RUDA

RUDA realises that there is a high demand for services related to marketlinks and information from all sections of leather artisans. In the case oftraditional jootis, the product is limited in its penetration into marketsbeyond rural Rajasthan. In order to access the lucrative markets beyondrural Rajasthan, artisans would like to receive market information andfacilitation to develop links with wholesalers, retailers and exporters.

RUDA thinks that there is a strong possibility of commercialising the ser-vice. Although the provision of a free stall by RUDA acts as an incentive toartisans wanting to attend exhibitions there is a section of mojari-produc-ing artisans who are willing even to pay for the stalls. This is because theyhave realised the benefits of attending exhibitions in terms of better sales,

better profit margins and developing links with wholesalers/retailers/exporters.

DC(H)

DC (H) requires artisans to be registered with it in order to participate inexhibitions organised by it. The registration of artisans is done first withthe District Industries Centre (DIC) and then with DC (H). The registeredartisans are informed about exhibitions by post. An artisan attending anexhibition generally gets another chance only after six months. The stallsat exhibitions are provided free of cost .

DIC

Exhibitions organised by DIC are meant for artisans from small and micro-enterprises in the district. These are usually organised once a year. DICplaces advertisements in local newspapers and sends letters to artisansregistered with it. DIC also sends invitations to agencies/organisationsworking with artisans who, in turn, send their groups to the exhibitions. Insuch cases, the organisation pays Rs7,500 for a stall to DIC for an exhibi-tion of 15�20 days. Until 2002, artisans were charged only Rs 1,000 for astall.

Strengths

· Understand the market for jootis. In order to cater to the market demand in terms of changing patterns and designsof jootis, RUDA constantly innovates in patterns and designs with the help of experts.

· Understanding of exhibitions Its direct involvement with organising exhibitions coupled with informal feedbackfrom artisans participating in various exhibitions across the country has helped RUDA develop an understanding ofexhibitions. RUDA has a good understanding of sales potential, types of products in demand and the profile ofconsumers in these exhibitions. In a year, RUDA participates in about 25�30 exhibitions through artisans associatedwith it.

····· High level of awareness about RUDA among artisans. The majority of leather artisans, particularly in Jaipur district,are aware of RUDA and its activity in the leather sub-sector. Even though there is discontent among a section ofartisans who have not been given a chance by RUDA to attend any exhibition, they regard RUDA as the preferredchoice for obtaining services related to participation in exhibitions.

· RUDA gets information about exhibitionsthrough DIC and DC(H)

· With government and non-governmentorganisations all across the country

· With exporters

Rural Non Farm Development AgencyIn-house capacity Links




The organisation has around 15 members and it has been established in order to· promote artisans making handicraft products· provide marketing support to the artisans by organising exhibitions and fairs· provide skill development training· provide information on new designs and technology to the artisans

Till now, the NGO has mainly focussed on making markets accessible to artisans for their products through exhibitions.The support is not, however, limited to a particular sub-sector and various kinds of artisans � artisans making productssuch as leather toys, jootis/mojaris, hand embroidery, artificial jewellery, soft toys, terracotta and handmade paperproducts � have benefited.

The decision to organise an exhibition is taken by members of the organisation in their monthly meeting and a tentativebudget is allocated. They also mobilise funds through donations. On the basis of the allocated budget, the number ofparticipants is decided and research for identifying a suitable venue and date is undertaken. Once the venue and datesare finalised, the artisans from various handicraft sub-sectors are informed through letters and invited to participate.Artisans usually confirm their participation by telephone. Finally, advertising in newspapers and distribution of pam-phlets is done to popularise the event in order to attract potential customers/buyers to exhibitions.

The NGO makes the stay arrangements for the participants in a dharamshala or a guesthouse and the cost is sharedamong the participants. Artisans are provided guidance on salesmanship and display of products. A contribution of 15-20% of sales is taken from the artisans. For those with very poor sales, the organisation even the contribution andprovides a travel allowance.


Strengths

· A good network and administrative set up

Weakness

· Limited role in the leather sub-sector

· Most leather artisans unaware about its role as service provider for market information on exhibitions. Only 3% ofartisans covered by the survey knew about DC (H).

· Inability to register with DC (H) because of the lack of knowledge of the procedures involved

· Artisans registered with DC (H) get information about exhibitions only once in six months

· Although artisans are provided with all facilities such as travel allowances and free stalls they find the frequency to bevery low

· DIC provides detailed informationabout exhibitions to RUDA andother organisations.

Distric Industries Centre/ Develoment Commissioner (Handicrafts)

Box 3.2 Market support provided by Kala SrishtiPerception of DIC and DC (H)

As these organisations are not exclu-sively involved only with leather arti-sans, they could not comment muchabout the demand for this service fromleather artisans. However, they agreedthat the demand for attending exhibi-tions is very high across all types of arti-sans in Rajasthan.

NGOs

A few NGOs working for artisans helpthem participate in exhibitions with thesupport of RUDA or the Small IndustriesDevelopment Bank of India (SIDBI).RUDA and SIDBI provide informationabout these exhibitions to NGOs�usu-ally those funded by them. This infor-


mation is passed on by NGOs to artisan groups associated with them. Inthis case, the cost of stalls is borne either by RUDA or by SIDBI and othercosts such as travel expenses, transportation of goods and food are borneby artisans. A local NGO, the Will and Way Foundation in Jaipur, in par-ticular, provides this kind of support.

Box 3.2 on the previous page provides a description of the work done byKala Srishti, a Delhi-based NGO, that helps artisans attend exhibitions.

Perception of NGOs

The experience of NGOs suggests that there is a demand for this service. Inall exhibitions organised by Kala Srishti, artisans have made contributionsbased on the level of sales generated. The study team estimates that at least50-60% of the costs of organising the exhibitions is recovered in this way.This indicates that there is a good possibility of commercialising theseservices.

Artisans/ relativesArtisans who receive information about exhibitions from any source butare unable or unwilling to participate pass on the information to theirfellow artisans. Information about retailers and wholesalers of jootis is

obtained during these exhibitions and from the Jaipur haat. During exhibi-tions wholesalers, retailers and exporters who like particular products col-lect detailed information about artisans and contact them at a later stage toplace orders if required. This practice is also found in the Jaipur haat on alimited scale.


Strengths

· Local NGOs have strong links with artisans· Credibility among artisans because of the voluntary objective of Kala Srishti· Good understanding of handicraft markets by Kala Srishti who keep themselves updated with the latest developments in

the market scenario, designs and technology. Preliminary research before finalising venues and dates for an exhibition iscarried out. Research during exhibitions is also done to know customer preferences, design patterns and target market.

Weakness

· The dependence on RUDA and SIDBI for information about exhibitions by Will and Way Foundation· Small budgets restrict identification of better venues and large scale organisation

· RUDA and SIDBI provideinformation about exhibitions tothe Will and Way Foundation

NGOs

The market linkage service provided by institutional suppliers such as RUDA,DIC and DC (H) through exhibitions and fairs is limited. During the assess-ment, more mojari producers from Udaipuria reported this type of linkagethan artisans from other villages. None of the respondents involved in tradi-tional jooti production have ever attended any exhibitions/trade fairs.

3.6 Sources of supply for the serviceTable 3.1 given on the next page summarises the sources and modes ofsupply of market-linked services.

3.7 Interactions of BDS suppliers with artisansTable 3.2 on the next page presents the number of artisans a supplier inter-acts with for the service and the contents/nature and duration of the inter-action.




Suppliers of service Mode of supply

RUDA · Either to groups of artisans or individual artisans· Market links under the Operation Mojari programme · Artisans are informed about the venue and dates of exhibitions· Market information about exhibitions and fairs · RUDA pays for the stall in exhibitions on behalf of the artisans

DIC · Places advertisements in local newspapers and also sends letters to artisans registered· Market information about exhibitions with it to provide information about exhibitions

· Till about 2002, artisans were provided with stalls at a subsidised rate of Rs1,000 per stall

DC (H) · Artisans registered with DC(H) are informed about exhibitions through letters· Market information about exhibitions · Free stalls in exhibitions organised by DC (H), for artisans registered with them

NGO · RUDA and SIDBI provide information about exhibitions to NGOs that are usually· Market information about exhibitions funded by them. The information in turn is passed by NGOs to artisan groups associ

ated with them.· The cost of stalls is borne by either RUDA or SIDBI but other costs such as travel,

transportation of goods and food are borne by the artisans

Artisans/relatives · Artisans receiving information about exhibitions from any source but not wanting to· Market information about exhibitions participate pass on the information to their fellow artisans· Market links · Artisans also obtain market linkage support from their relatives and fellow artisans �

but this is limited· The service is provided based on informal relationships; unsubsidised.

Number of artisans Duration of interaction Contents/ nature of interaction

RUDA · Usually 10�15 minutes; time required is less for · Information about venue, date and· Exhibitions: 100�125 artisans contacted every year artisans who regularly attend exhibitions through directions to reach the venue· Direct market linkage through outlets : 100�150 artisans RUDA

DIC and DC (H) · Mostly through NGOs or direct contact · Information on venues and dates of· 10�15 artisans per year · Duration of interaction is about 5 minutes exhibitions

Fellow artisans · Not more than 10�20 minutes for providing · Knowledge about dates and the venue· 1�3 artisans information on exhibitions

Table 3.2 Interaction of BDS suppliers


Table 3.1 Services and modes of supply


Table 3.3 presents the extent of commercialisation of the service. It is evi-dent from the table that the service provided to artisans mainly by institu-tional suppliers contains subsidy to varying degrees.


· Public money involved to varying extents

· In most cases public money is involved to varyingde- grees so differential fees are charged

· Services are provided based on informalrelationship and without any obvious transac-tions; unsubsidised


3.9 ConclusionIssues related to the marketing service

· Although the demand for the service is high among artisans, productssuch as traditional jootis may act as limitations to potential BDS providers.Improvements in the quality of existing products as well as thedevelopment of new products may be required to enable artisans to buythese services on a commercial basis.

· Attending exhibitions is a major priority for artisans irrespective of thequality of their products. The existing practice of government institutions� DIC, RUDA, DC (H) � of subsidising the service acts as a barrier to theentry of potential BDS providers from the private sector. However, theseinitiatives have made artisans realise the utility and importance of theservice for their enterprises.


· It is obvious that there is a high demand for this service. The servicesshould be specific to meet the requirements of various artisans�market

links and information services for producers of traditional jootis maynot suit those producing mojaris.

····· A section of artisans are willing to bear the full costs of participating inexhibitions and fairs. More than 50% of the artisans are willing to paythe entire amount for the service. The remaining artisans are willing topay partially in the initial phase.

····· The provision of this service would be more meaningful if jootis wereupgraded in terms of patterns and designs. The traditional jootis in theexisting form are only suitable for the rural market which seems to begradually shrinking. Hence training in producing new-designed jootiswith different patterns and the production of other leather goods couldbe the first step.

····· Importance and performance of village agents in Udaipuria in marketingmojaris suggests that the promotion of such agents in other villageswould be productive. Capacity building of potential agents could beundertaken to enable them to provide this service to other artisans moreeffectively.

RUDA/ DIC / DCH

NGOs

Artisans/ relatives




4.1 Introduction

The results of the BDS assessment survey show that about 45% of therespondents would like to obtain input supply services such as

· Information about sources of quality raw materials, particularly leather,and assistance in developing links with suppliers

· Information about accessories used in mojari production· Information about accessories used in leather goods production.

The demand levels of these services are presented in Figure 4.1. Out of 45%of the total respondents who would like to obtain input supply services;63% would like to have information about sources of quality raw materials,particularly leather, and assistance in developing links with them; 36%like information about accessories for leather goods; and 23% would likeinformation about accessories for mojaris. It is apparent that there is a gooddemand for information about the sources of supply of quality leather com-pared to other types of services in this category.

Table 4.1 presents the raw materials and accessories used for the productionof jootis and leather goods.

Raw materials· Traditional jootis · For upper - chrome leather, country leather

For sole - country leather

· Mojaris · For upper - chrome leather, country leatherFor sole - country leather

· Leather goods · Country as well as chrome leather

Accessories

· Traditional jootis · Coarse thread, fine thread, nails, rubbertube, canvas, rubber milk, leather board,polish andcream

· Mojaris · Foam, rexine, thread, rubber sheet, rubbermilk, polish, wooden discs, wooden beads,colours, liquid for removing stains from leatherand other items for decorating the uppers ofjootis

· Leather goodsa · Buckle, Zip, wrought iron frames

aAs the level of leather goods produced is relatively low, therefore the knowledge among artisans aboutvarious accessories used was found to be low.

Figure 4.1 Demand levels for sources of input supply

Table 4.1 Raw materials and accessories used

4.2 Information about sources of raw material andassistance in developing links

Artisans use either smaller pieces of chrome leather rejected from the leatherindustry across the country or vegetable-tanned country leather to preparethe uppers of jootis. Artisans feel that good quality chrome leather in largerpieces would ensure better returns because of the improved quality of jootis.The demand for this service is greater from artisans who are still making

0

20

40

60

80

100

Inform ation aboutsources of qua lity

leather

63% (28% overall)

Inform ation aboutaccessories for leather

goods

36% (16% overall)

Inform ation aboutaccessories for m ojari

23% (10% overall)

4 Market linkage and information

traditional jootis. Artisans who are willing to be trained in producing leathergoods are also interested in this service so that they can produce a range ofgood quality products with different designs.

Expected benefit

· Better returns from existing production of jootis and leather goods

4.3 Information about accessories used in theproduction of mojaris

Accessories used in mojari production are different from those used intraditional jootis. In mojaris artisans use foam and rubber, country-tannedleather, chrome-tanned leather, rexine, and wooden beads and discs ofvarious shapes and colours to provide variety in design. In traditionaljootis, usually country-tanned leather is used both for the soles and theuppers (in some places artisans also use chrome leather for the uppers).The uppers of traditional jootis could be either simple or incorporate designsthat use embroidery work or small leather pieces.

Artisans who want to produce mojaris would like to obtain information onthe sources of supply of these accessories so that they can start theproduction of mojaris.

Expected benefit

Information on accessory suppliers would enable artisans to procure theseaccessories if they undertake the production of mojaris.

4.4 Information about accessories for leather goodsand sources to procure them

Artisans who are willing to learn skills to produce leather goods andundertake its production would like to obtain this service. A smallproportion of respondents (5%) who occasionally undertake leather goodsproduction want such information.

Expected benefit

· Help artisans in sourcing accessories once they start large-scaleproduction of leather goods.

Before discussing various aspects of the BDS under discussion, the followingis a brief description of the existing sources of input supply for makingtheir products.

4.5 Existing sources of input supply

Jaipur haat

Chrome leather and country leather are traded in the weekly Jaipur haat.Out of 100 traders, more than 80 either come from Agra or procure leatherfrom Agra. Most of the others come from Kanpur � the latter with a largeraw hide market as also a concentration of tanneries. The leather is soldmostly in the form of rejects and leftover pieces.

The haat is a very competitive market because of the presence of largenumbers of buyers as well as traders. Based on a rough estimate, about4,000 artisans visit the haat on a given day. While 90% of artisans purchasea small quantity of leather (2�5 kg) to meet their weekly requirements, theremaining 10% with relatively large levels of operation purchase 15�20 kgof leather.

Nearly 95% of the artisans who procure country leather pay by cash. Creditsales are restricted to artisans who are known to the suppliers and have aregular business relationship. Artisans buying on credit are charged Rs50�100 per piece more than the average price of Rs1,200�1,700 per piece.

Village tanneries

Artisans also buy country leather directly from village tanneries. Villagetanneries are the major sources of supply for country leather to the Jaipurhaat.




Dausa haat

Vegetable-tanned country leather istraded in this haat, which is held everyMonday in Dausa. The price of leather inthe Dausa Haat of the same quality leatheras in the Jaipur Haat is slightly higher.Therefore, only a small number of artisanswho are unable to go to the Jaipur haatand often sell their jootis in Dausa haatbuy leather from there. About 30% of therespondents from Dausa districtpurchase country leather from this haat.Artisans feel that leather which does notsell in the Jaipur haat is brought to Dausa.

Agra haat

In the villages of Dausa, the artisanswhose scale of production is as high as75-125 jootis per week go to the Agra haatto procure chrome leather once in twomonths and purchase nearly Rs15,000-20,000 worth of leather. Leather of thequality available in Jaipur is moreexpensive by about Rs10�15 per kg ascompared to that available at Dausa.

Village level retail shops

There are some retail shops in a fewvillages that mainly sell chrome leatherand accessories required for theproduction of jootis. These shops arelocated in Kishengarh Rainwal, Chaksuand Chavandia villages of Jaipur district.

There are three retail shops in Kishengarh Rainwal that aremanaged by people from the artisan community.

Procurement and pricing of leather

A shop procures leather worth Rs2,000-3,000 from the Jaipurhaat on a weekly basis by paying cash. The amount of stock inthe shop varies according to the season. During the rainy season(August-September), the value of the stock is as low as Rs1,000-1,200. The price of leather is in the range of Rs100-125 per kgwith a margin of 10-15%. However, artisans in the villageperceive the margin to be around 20-30%.

Sale of leather

These shops have two types of customers

· Artisans making cash purchases to meet any shortfall intheir weekly requirements purchased from the Jaipur haat

· Artisans making regular credit purchase

The second category of artisans contribute to about 50% of thesale of the shop that has a turnover of Rs1,000-1,500 per week.Credit sale is a strategy to attract artisans and ensure a betterturnover.

Usually, medium- and small-sized production units (needingless than 2�3 kg of chrome leather per week) buy leather fromthese shops. Large production units (needing more than 10 kgof chrome leather per week) prefer the Jaipur haat.

Relationship with artisans

In these shops, credit sales are based on a customer�s loyalty.Those artisans who prefer credit purchase compromise on costby paying a 10�15% higher price than those making cash pur-chases. With credit purchases, a portion of their previous duesare paid and further purchases are made. Shopkeepers followup regularly with artisans to recover their dues.

Four village retail shops have started dealing inaccessories for jootis in Udaipuria during thelast two years. The village retail shops are either

· exclusive retail shops for leather accessories· general stores in the village stocking

accessories for the production of jootis.

Artisans have helped the shopkeepersunderstand their demand and requirements ofaccessories. Stocks are procured from the Jaipurmarket in cash. These shops have a margin of15�20% on the cost price, which covers theirprofit margin as well as the cost oftransportation.

These shops have two types of artisans ascustomers

· Artisans making credit purchases· Artisans meeting a shortfall in their weekly

requirements by making a cash purchase

In order to increase the limited customer baseof these retail shops, they often promote creditpurchases. Artisans obtain accessories fromthese shops when the need arises and makepayments when they have the requisite cash.The accessories retailers in Udaipuria do notsee any major problems with their businessbecause they have a close relationship with theircustomers and feel their money can be easilyrecovered. Only in a very few cases haveretailers resorted to stringent measures torecover their money.

Competition amongst these village level retail-ers is intense.

Village level retail shops

Shops in Kishengarh Rainwal Shops in Udaipuria


Vendors of accessories

Table 4.1 presents the percentage of respondents using various sourcesto obtain raw materials, particularly leather

*Mainly artisans from Dausa district

Table 4.1 shows that the Jaipur haat is the major source for procuring bothcountry and chrome leather. Artisans prefer to purchase from villagetanneries to meet any shortfall in their weekly requirements or to makecredit purchases village shops. A small percentage of artisans from villagesin Dausa district buy country leather from the Dausa and Agra haats.Artisans from a few villages in Dausa district such as Pipalkheda purchasechrome leather only from Agra haat.

Collective purchase of raw materials

In Chavandiya village, a group of 20 artisans have come together. The groupis divided into four sub-groups, each with a representative with a good under-standing of the quality of leather. Each of these representatives collects infor-mation on the individual requirements of the group members. The groupleader consolidates the requirements and makes a bulk purchase from theJaipur haat at a slightly reduced price. Thus, each member of the group is ableto save about Rs100 per week as a result of the collective purchase.

Shops in Jaipur are a major source of accessories for artisans from Jaipurdistrict. Only a very small percentage of artisans meet their requirement ofaccessories from village retail shops. Artisans from Dausa district meettheir accessory requirements from shops there. When artisans from Dausadistrict visit the Jaipur haat to sell their jootis they procure their accessoryrequirements from shops in Jaipur.

There are also a few collective initiatives for procuring raw materials. Thefollowing box provides an example of one such initiative

4.6 Sources of supply of BDS for inputs

Table 4.3 on the next page presents the sources of supply for the serviceand other details. The process of information and skill in the sub sector isillustrated by the information in the boxes that follow Table 4.3.

Table 4.2 shows the percentage of respondents using various sources toobtain accessories.

Weekly visit of vendors to Udaipuria village

Realising the market potential for decorative items such as wooden beadsandwooden discs, a retailer from Jaipur started sending vendors to this villagethree months ago. Every Sunday 2-3 vendors arrive in the village on amotorcycle to sell these items at the artisan�s doorsteps. This provides toughcompetition to the village retail shops that sell at prices slightly higher thanthose in Jaipur. Each vendor sells accessories worth Rs1,000�1,200 in cash pervisit.

% of respondents

Country Chromeleather leather

· Jaipur haat 93 88

· Village tanneries 12 -· Other local village haats (in Dausa district) 7 -· Village level retail shops - 3· Agra* 14

Table 4.1 Use of various sources by artisans


· Shops in Jaipur 89· Village level retail shop 3· Shops in Dausa 11

Table 4.12 Use of various sources for accessories

Source




Suppliers Service Observations

Exporters and · Information about sources of quality raw material · The service is provided to artisans with business relationships. Itwholesalers of jootis is intended to enable artisans to make jootis using a particular

kind of leather. The service is provided mostly in embedded form· At the time the order is placed, either the leather is supplied or

information about the sources is given· Exporters seem to have a better understanding of these sources in

comparison with wholesalers· Dissemination to fellow artisans by those who have gathered this

information while working with wholesalers/exporters

Artisans/relatives · Information about sources of good quality raw material · Informal exchange among artisans on a mutual basis· Information about accessories used in the production of

Trainers · Information about sources of good quality raw material · Information desseminated at skill development training programmes· Information about accessories used in the production of · A good master craftsperson imparting skills provides such informa

mojaris and leather goods. tion but depends mainly on the knowledge level of the trainer

RUDA · Information about sources of quality raw materials, · Progressive artisans associated with RUDA seek this serviceparticularly leather · Service is mainly provided on an individual basis

· Information about accessories used in the production ofmojaris

Retail shops for supply · Information about accessories for jootis · Whenever artisans buy accessories, they enquire about certain kindsof accessories and leather goods of accessories that could be used for some specific purpose. Most of

the accessory shops have a variety of goods that might meetvarious requirements. Once a trading relationship is developed anexchange of information on different types of accessories take place.

· The service is provided mainly in the embedded form

Village level market · Information about leather · Service is provided to artisans associated with them due to theiragents · Information about accessories for jootis and leather goods links with a number of people in the sector and exposure to Delhi

markets· Service is provided in embedded form

Table 4.3 Sources of supply of BDS for inputs


Table 4.3 Sources of supply of BDS for inputs

Suppliers Service Observations

Traders and raw material · Information about leather · Artisans visiting Jaipur haat and other shops make observations onsuppliers in the haat and · Information about accessories for jootis and leather goods different kinds of inputs that are traded. Artisans acquireaccessory suppliers in Jaipur information on various sources of raw material by interacting withand villages traders and observing materials being traded.

leather. The resulting higher profit margin motivated them to continueproducing these jootis.

In the initial phase, they hired other artisans to undertake job work and meetthe market demand. Other village artisans were reluctant initially to do so dueto a feeling that it might require a different set of skills. They were provided on-the-job training to make the uppers of jootis with chrome leather.

Wholesalers were initially hesitant to buy these jootis although such jootis wereavailable in the market. They were persuaded to experiment with 3�4 jootis perweek. The chrome jootis were offered at a slightly below the market price. Theinitial market response to the jootis was good and demand gradually increased.The price of jootis increased from Rs70 to Rs110 in a span of four years.

Slowly the artisans working on a job work basis learnt the entire process ofmaking jootis with chrome leather uppers and started their own independentunits in the village.

The dissemination of knowledge about leather products has also taken place inthis way in the villages of Chaksu in Jaipur district and Kundal and Pipalkhedain Dausa district. In all these villages artisans adopted different kind of productsbased on the suggestions of fellow artisans/wholesalers.

Information about leather from exporters

Some of artisans from Chavandia village in Jaipur district were working for Jalaj International on a job work basis. The exporter placed an order for jootis using aparticular kind of leather. The artisans were unable to arrange for this leather from any of the sources known to them so the exporter accompanied them to New Delhifrom where the leather was purchased. In addition, artisans were also shown other places in Delhi from where cheap leather could be purchased.

Gudeliya village in Dausa district has about 125 artisans who make traditionaljootis with uppers made of chrome leather. About 12 years ago, the entirevillage was making jootis with uppers made of vegetable-tanned country leather.The price of country leather was increasing but they were unable to raise theselling price of the jootis. At that time, four artisans from the village, unable togenerate adequate returns from independent production, approached a whole-saler at Dausa for job work. This wholesaler was involved in the productionand sale of traditional jootis with chrome leather uppers.

The process of imparting knowledgeAs the relationship between artisans and the wholesaler grew, he started takingthem to Agra from where he usually purchased chrome leather. Each of thefour artisans got a turn by rotation to go to Agra and learn about the types andprices of chrome leather available there. In the process, the artisans realised themarket potential and profit margins in producing chrome leather jootis.

Use of knowledge by the artisansAs the artisans gained confidence with the production of jootis with chromeleather uppers they started returning to their village and producing these jootis.The first lot of jootis with chrome leather uppers, ten years ago, fetched them aprice of Rs75 against the prevailing price of Rs40�45 of jootis made with country

Use of chrome leather facilitated by a wholesaler




As discussed above, information about accessories is available in throughfellow artisans and suppliers of accessories. The information is exchangedinformally. The extent and impact of this service in the embedded form canbest be understood through the following example.

Information provided by suppliers of accessories

Growing market competition forced the artisans of Udaipuria village, in Jaipurdistrict, to look for cheaper substitutes and introduce new designs. About 2years ago, SMD (a type of mojari) was being made using country leather withplain uppers and a few wooden beads and discs. Now it contains chromeleather in uppers, rexine in upper and sole, foam and rubber in the sole. Itsuppers have stitches and wooden beads to provide differentpatterns.

The shift from country leather upper to chrome leather was a gradual process.Wholesalers in Delhi demanded that the jootis be made with soft leather in theuppers. Village agents conveyed this to artisans and the latter initially re-sponded to this by using vegetable-tanned country leather of the cow, calf orgoat. As the wholesalers demanded even softer leather, the artisans startedusing chrome leather for the uppers. In addition, artisans took the initiative tofind alternative cheaper substitutes for leather. Accessory suppliers in Jaipurprovided them information on rexine, foam, rubber and a cheaper variety ofwooden beads and discs meant for purposes other than jooti production. Ini-tially, just a few artisans used these materials in jootis. As the jootis wereacceptable to Delhi-based wholesalers, the use of the cheap accessories in-creased.

4.7 Interactions of BDS suppliers with artisans

The number of artisans a supplier interacts with for the service and thecontents/nature and duration of the interaction is summarised on the nextpage in Table 4.4

4.8 Supply status of the service

Availability

Services related to information about leather, accessories used in jootis and

leather goods are available from various sources mostly in the embeddedform. This service is available to those artisans who visit haats and shopsdealing in these products. Artisans whose operations are restricted torural haats and rural markets usually do not receive these services.Progressive artisans interested in making leather goods other than jootisneed information on the sources of high quality raw materials, which theyoften do not receive from the above sources.

Quality

According to artisans, the quality of services offered is not very good.Although traders have information about the sources of supply of qualityraw materials they usually do not pass this information on to artisansprobably for commercial reasons. Other suppliers do not offer qualityservices due to a lack of the required knowledge.

In-house capacity

As the service is provided in the embedded form, suppliers do not have anyin-house capability to improve the quality of service. Suppliers providingsuch services often do not feel that this is an important service; it is rathertheir business strategy to have a competitive advantage in the business.

Perception of service providers

Most of the service providers feel that this is a very important service andcould be offered to artisans to improve the overall sub-sector and the qualityof products produced. A majority of them feel that there is a possibility ofoffering this service in a stand-alone form as well as the embedded form.They do not mind paying a fee for this service.


The supply of all the services through all the above sources except RUDAis made on a commercial basis and no public money is involved.


Supplier Number Duration of interaction Contents/ nature of interaction

Exporters · Around 20�40 artisans are mainly · Difficult to estimate in the context of · The interaction on various parameters is limited basedinvolved in processing job orders the job order on the job orders

Fellow · Normally 10�15 artisans who have a close · 10�15 minutes · Mainly information on sources of supply andartisans/ relationship pricesrelatives

Trainers · 15�25 artisans · 1�2 months · Mainly information on sources of supply,average price

RUDA · Very limited service · 5�10 minutes · Mainly on sources of supply if it has the relatedinformation

Retail · Jaipur-based retailers interact with 10�50 · 5�10 minutes per artisan · Different accessories and knowledge aboutshops of artisans per day on an average and cheaper substitutesaccessories around 100�200 on Saturday

· Village-based retailers interactwith 15�20 artisans per day

Village · 10�30 artisans · 10�15 minutes · Mainly information on sources of supply if theylevel knowmarketagents

Traders in · Around 4,000 artisans interact with · 6�7 minutes of interaction · Information on different kinds of leatherthe Jaipur 100�125 traders available with the tradershaat fromAgra andKanpur

Table 4.4 Interaction of BDS suppliers with artisans



4.10 Conclusion

Market issues

· About 65% of the respondents willing to obtain this broad service wouldlike to have information about the sources of quality as well as the cost-effective availability of raw materials. Most of the artisans surveyedare constrained by limited working capital availability, and access toplaces other than the Jaipur haat which may be difficult unless theymake a collective purchase in a large quantity in a group. Nearly 8% ofthe respondents were found even to be unaware of sources of rawmaterial other than Jaipur haat.

· Information about sources of quality raw materials alone may not besufficient to meet the artisans� requirements. This service should becoupled with information on their uses for various purposes.Information on the existing use of materials by artisan groups in placesother than the Jaipur region may increase the utility of such services.


· The level of demand for different kinds of leather and accessoriessuggests that in about 50% of the sample villages the weekly demandfor leather exceeds Rs1 lakh. The weekly requirement for accessoriesalso exceeded Rs15,000 in about 40% of the sample villages (Annex 6).

· Service provision in an embedded form is what seems to work well.This service could be packaged with other services such as marketlinkage, training and technical assistance. The price for providing thisservice could be incorporated by the service provider in the main BDS.



5.1 Introduction

The BDS assessment study indicates that about 67% of respondents wouldlike to obtain this service in the following forms

· Varied patterns and designs of jootis

· Suitable polymer lasts to match different patterns of jootis

· Machines

Figure 5.1 shows the demand levels for these services. Out of 67% of thetotal respondents who would like to obtain services related to the technol-ogy for better designs and new products; 60% would like to obtain differentpatterns and designs of jootis, 41% would like to obtain suitable polymerlasts according to patterns of jootis and about 24% would like to procuremachines for different production activities. This indicates that there isgood demand potential for patterns and designs of jootis as well as forsuitable polymer lasts. The demand for machines is not so high.

5.2 Different patterns and designs of jootis

The terms � patterns and designs � as applied to the production of jootisare· Pattern: A complete sketch of the upper and the sole of jootis developed

on a piece of cardboard or a thick plastic sheet. Leather to be used inthe jootis is cut using this pattern. Based on the sizes and types ofjootis, the patterns may vary. Some of the patterns used in the productionof mojaris are named SMD, Dolma, Pakeeza, Kowa and Myul.

· Designs: The different forms and shapes on the uppers of jootis. Stitch-ing, embroidery, punches, weaving and strips of leather are used tomake designs. Small wooden beads and discs are also used for designsof mojaris on the upper.

About 80% of artisans involved in the production of mojaris have less thantwo patterns. Only a few artisans supplying to UNDP-NLDP have asizeable number (10�15) of patterns. Other artisans have to borrow thepatterns from these artisans.

Producers of traditional jootis usually have only one pattern that is commonin a village. Artisans involved in mojari production want more patterns toproduce a variety of mojaris. Producers of traditional jootis would like toobtain patterns to undertake mojari production.

Expected benefits

· Products with new patterns and designs help to sustain the market

· Enable penetration of profitable urban markets

5.3 Suitable polymer lasts to match different patternsof jootis

There are two types of lasts used by artisans in the sub-sector

5 Technical support for better designs and new products

0

20

40

60

Patte rns & designsof joo tis

Su itab le po lym er las ts M ach ines

60% (40% overall)

41% (27% overall)

24% (16% overall)


Figure 5.1 Demand for technical support


· Wooden lasts These are the most common lasts used by artisans, inparticular, by producers of traditional jootis. The most commonly usedraw materials for making these lasts are babool, sisam or pras wood.However, sisam is used only when the lasts are required for left andright jootis. Usually, the orders are only for a single last of a specificsize as in the traditional jootis where there is no difference between theleft and right jooti. Wooden lasts deform with use and affect the qualityof jootis. With continuous use they also develop cracks and eventuallybreak during the process of hammering the lasts inside jootis.

· Polymer lasts These are mostly used in the production of mojaris andare made of hard plastic. They are durable and do not deform with use.Jootis produced with lasts have a better finish.

Artisans like to obtain suitable lasts to match the patterns in use. About80% of artisans involved in the production of mojaris do not have anadequate number of lasts and this limits the use of different patterns. Someof the artisans do not have any lasts and depend on fellow artisans forthese. Artisans� willing to start production of mojaris would also like toobtain suitable lasts.

Expected benefit

· Production of mojaris with different patterns and better finishedproducts

5.4 Machines

Artisans feel that the production of jootis is labour intensive and some ofthe processes should be mechanised. A very small number of artisans haveknowledge of any machines suitable for this purpose � even this knowledgeis not adequate. Some suitable machines are those for buffing, punching,dyeing and colouring.

Expected benefit

· Efficient production processes and better quality jootis/mojaris.

5.5 Sources of supply

Table 5.1 shows the sources of supply of technology for better designs andnew products

Different patterns and designs of jootis

The main sources of supply of information related to patterns and designsare· Rural Non Farm Development Agency (RUDA)· Fellow artisans· Retailers, wholesalers and exporters

RUDA

Under the Operation Mojari programme, patterns of mojaris were distrib-uted among artisan groups. These patterns brought about the concept ofstandard sizing with the distinction of the right/left jooti. Presently, arti-sans who supply mojaris to UNDP-NLDP are provided with ready-madeuppers of mojaris and artisans stitch them to the soles. Strengths and weak-ness of RUDA are mentioned in the box on the next page.

Perception of RUDA

According to RUDA, this service has a very high demand among artisans.Artisans producing mojaris realise the importance of keeping up with thelatest designs and patterns to gain an advantage in the market. RUDA feelsthat patterns are adequately available with artisans in different villagesand they willingly share these among themselves according to need.

Artisans and women in their families are adept at making designs as theyare very creative. The designs on the patterns are made mainly with thehelp of embroidery, punches, weaves and small leather strips.

Artisans tend to produce only those patterns of mojaris which have anassured market. Only three patterns � SMD, Dolma and Myul � are com-monly used by artisans. The level of interest of artisans in other patterns ofmojaris is extremely low.


Suppliers Service Mode of supply

RUDA · Patterns for mojaris · Mainly to artisan groups formed in and around 13 villages in Jaipur· Polymer lasts conforming to the patterns of mojaris · The supply of the service is subsidised to varying extents· Supply of machines · The supply of the service is subsidised to varying extents

Artisans-cum- producers · Wooden lasts to traditional jooti makers · Based on orders placed by artisans. Supply of the wooden last isof wooden lasts generally made within 5�7 days.

· The service is totally commercial and artisans pay for it

Artisans · Polymer lasts on rental basis · Lasts are rented only when not in use by the owner (artisan)· Supply of the service is commercial in nature and Rs5 is charged for

each pair of jooti made

Fellow artisans · Patterns for mojaris · The artisans supply patterns and corresponding polymer lasts for· Polymer lasts mojaris on a mutual basis within and across

groups or to relatives and friends· The supply of these services are on an informal basis

Retailers, wholesalers · Patterns and new designs of jootis/mojaris · Retailers/wholesalers provide ideas about new patterns andand exporters · Lasts designs with the help of new samples of jootis obtained by them

from various sources. Instances of the supply of lasts are very few

· Exporters develop their own patterns of jootis and provide themalong with suitable lasts to those artisans who process their orders

· This service is provided in embedded form.

Table 5.1 Suppliers of technology services for better designs and new products

RUDA Links

Strengths· Understanding by RUDA of the demand · Links with for new

for this service among artisans patterns and designs· Adequate links with institutions/suppliers · Links with designers

to ensure these services to artisansWeakness· Lack of adequate systems�the technology

and tools provided to artisan groups are notavailable to all group members

Fellow artisans/ relatives/ friends

All artisans involved in the production of traditional jootis have their ownpatterns. The availability of patterns of mojaris is limited to a few villagesin Jaipur and artisans share them. Artisans often get these patterns fromtheir relatives or friends in other villages involved in the production ofmojaris. Most patterns are shared among the artisans.

However, some artisans who feel that patterns give them an advantage inthe market do not share them with their friends/relatives. This is morelikely to happen when artisans make the patterns themselves.




The artisans� feedback suggests that though they would like to obtain newdesigns and patterns they hesitate to ask retailers/wholesalers. This is be-cause if they express willingness to produce new designs or patterns then theretailers/wholesalers will deliberately quote a lower price for such jootis. Ifthe demand for a jooti with a different design comes from retailers/whole-salers then they have a better chance of bargaining to get a better price.

Fellow artisans/ relatives / friends Links

Strengths· Association of artisans with RUDA · Links with RUDA,· Close interaction with fellow artisans retailers, wholesalersWeakness and exporters for· Lack of an adequate number of patterns obtaining information

/designs on patterns & designs

Perception of fellow artisans

There are a substantial number of artisans who get this service from friendsand relatives.

Retailers/ wholesalers and exporters

Retailers/wholesalers often provide sample jootis to artisans to get aparticular type of jooti made. Artisans develop patterns on their own basedon samples. Retailers/wholesalers sometimes provide their inputs/feedback during pattern development. They provide new designs to artisansmainly on the basis of a continued business relationship. The design inputsof wholesalers are provided on the basis of feedback from final consumers.The in-house capability of retailers and wholesalers to develop new designsis almost negligible.

In contrast to retailers/wholesalers some exporters do have the capabilityto develop patterns and hire expert designers for this. These exporters sup-ply uppers and also patterns to artisans for stitching with soles. In thisway, artisans get access to varied patterns. In some cases, however, export-ers only provide a sample jooti and artisans develop the patterns on theirown. The following box illustrates the process

Perception of retailers, wholesalers and exporters

A majority of retailers/wholesalers share the view that though artisans areskilled enough to make jootis/mojaris with new designs, they are rarelywilling to do this. Artisans feel that new designs/patterns would requireextra time and effort, which would reduce their productivity thereby affect-

ing their overall earnings.

Supply of patterns and lasts by an exporter

Savardha village (Jaipur) has nearly 90 production units of jootis. They pro-duce mojaris as well as traditional jootis. They need patterns along withsuitable lasts to produce jootis. They do not seem to have any idea of sourcesof supply (other than RUDA) to obtain patterns. Most of the artisans haveonly one pattern of mojari.

In the Jaipur haat, one of the artisans of the village came across an exporter(name of the exporter not known even to artisans) who liked the quality oftraditional jootis produced by him. The exporter had bulk orders for ethnicallydesigned traditional jootis. The artisan agreed to do the job work for theexporter who supplied him with three different patterns of the uppers. Sincethe artisan did not have suitable lasts, the exporter ordered the requisite lastsfrom a last maker in the village. As the demand for the jootis increased, moreartisans (about 40) from the village joined the work and eventually thesepatterns became available to all the artisans in the village.

Strengths· Direct interface with buyers and other

market players help them in developinggood understanding of the latest trendof designs and patterns of jootis

Weakness· The majority of retailers/wholesalers

have negligible in-house capacity todevelop new designs and patterns

Wholesalers and exporters Links

· Direct links with finalconsumers and buyersfor feedback on designs

· Association with de-signers


Exporters were unable to comment on the demand potential of the serviceprobably because they each have interaction with a limited number of arti-sans.

Retailers/wholesalers feel that there is scope to commercialise this serviceso that artisans can access more designs and patterns on a continuousbasis. Exporters are willing to pay a higher price to artisans for productswith innovative and unique designs/patterns.

Suitable polymer lasts to match different patterns of jootisThe main sources of supply are

· RUDA· Village-based artisans

RUDA

Under the Operation Mojari programme, RUDA distributed polymer laststo artisans from 13 villages in Jaipur. At least one set of lasts for a pattern ofmojari was supplied to each artisan group. One set of lasts consists of anumber of lasts in different sizes. RUDA charged Rs250 per set of lastsfrom artisans (80�90% subsidised).

RUDA Links

Strength· Association with manufacturers of polymer · Links with technical

lasts expertsWeakness· Lack of adequate systems � the technology

and tools provided to artisan groups are notaccessed by all group members

Perception of RUDA

Artisans from different villages of Jaipur constantly approach RUDA foracquiring polymer lasts. A majority of these artisans are also willing to payfor the lasts. RUDA believes that the growing demand for lasts is mainly

due to the increasing market demand for mojaris. RUDA�s experience sug-gests that the level of demand for lasts from different villages varies inaccordance with the scale of production of mojaris in the village, which inturn depends on the nature of market links of artisans.

Village-based artisans

The three ways in which lasts are supplied by village-based artisans are

· sharing of lasts among artisans

· artisan-cum-manufacturer of wooden lasts

· supply of polymer lasts on rent

Sharing of lasts among artisans

As the availability of polymer lasts with artisans is less in comparison tothe requirement, lasts are shared among them.

Artisan-cum-manufacturer of wooden lasts

A small number of village-based artisans supply wooden lasts for traditionaljootis. They operate from the village and cater to the demands of nearbyvillages (5�6). A few of them also visit local haats occasionally but the salefrom haats is very limited. Artisans place orders by personally visiting thelast maker and collect the lasts after a few days. The price of a pair of lastsranges from around Rs50 to Rs70.

Supplier of polymer lasts on rent

Most of the artisans of Ramjipurakalan produce Dolmas (a pattern of jooti).At present there are only three jooti producers in the village who havesuitable polymer lasts for such patterns. Because of the inadequate supplyof lasts, three producers cashed in on the business of renting out the lastsavailable with them. The details about Tarachand are presented in the boxon the next page.

Perception of village-based artisans

· Artisans feel that there are a substantial number of artisans who obtainthis service from friends and relatives by sharing lasts.




Mr Tarachand, a jooti producer from Ramjipurakalan village of Jaipur dis-trict, is also a supplier of lasts. He started supplying lasts to fellow artisansfrom his village around 5 months ago. He got the idea of renting out lastsfrom a fellow artisan in his village who had started renting lasts after procur-ing them from RUDA. Earlier he used to rent out the Dolma lasts for only Rs1per jooti. Subsequently he increased the price to Rs5 per jooti as he realisedthat he was the only supplier with separate lasts for both men�s and women�sjootis. The other two suppliers had mixed kind of lasts.

Lasts are rented out only when Tarachand does not use them himself. Whenthe lasts are given on rent to artisans, they return these only after the work isover. Tarachand does not bother them even if he needs the lasts. The rent ispaid only after the sale of jootis.

Artisans prefer to take the lasts from Tarachand because of his cordialbehaviour. For the benefit of the new artisans Tarachand even takes specialcare to explain the way to use the lasts and sometimes provides suitablepatterns too (service offered in the embedded form). Presently, Tarachandhas 12 pairs of polymer lasts that he can rent out twice a month, therebyearning around Rs1,200 per month (assuming that each last is used for 10pairs of jootis).

· The wooden last makers believe that the demand for wooden lastsfrom the producers of traditional jootis is not very significant. The mainreason for this is that the wooden lasts used in traditional jootis aremore durable (2�20 years). Moreover, a last maker receives orders foraround 80�100 lasts a year which is not sufficient for it to be a full-timeoccupation.

· The demand for polymer lasts is very high and artisans are willing topay for this service.

· Sharing of polymer lasts among artisans hampers the production ofquality products � jootis need to be kept in the lasts for a certain mini-mal duration.

Other sources

Other sources of supply of lasts, not so common, are exporters and thesuppliers from Delhi and Agra

Links

Artisans sharing lastsStrengths

· Close contact with artisans

Weakness· Most of them do not have an adequate num-

ber of patterns and suitable lasts

Artisan-cum-wooden last maker

Strengths

· Good understanding of wood used in mak-ing wooden lasts

· An additional source of income

Weakness

· Adequate skill levels; however needs fur-ther improvement

Supplier of polymer lasts on rent

Strengths

· Renting of lasts is done only when it is notbeing used by the supplier

· There exists a demand for this service

· RUDA for obtainingpolymer lasts

· With sawmills for ob-taining wood. How-ever, information onthe quality of woodsuitable for last makingis handed down bytheir predecessors

· RUDA for obtainingpolymer lasts

In-house capacity

Exporters

Exporters supply lasts to artisans, if needed, for processing their orders butare taken back after production.

Suppliers from Delhi and Agra

A few artisans have started purchasing polymer lasts from Delhi and Agra.

MachinesAt present the only source of supply of machines is RUDA. RUDA hasprovided leather stitching machines and finishing machines to a numberof artisan�s groups.


Most of the processes involved in the production of jootis are manual. A largenumber of artisans usually use cloth-stitching machines by replacing theneedle (a few leather stitching machines are also used) for stitching leather.Machines are bought from shops in Jaipur for Rs. 3,000�4,000. Several artisansbuy second-hand machines for Rs1,000�1,500 but a number of artisans do nothave machines. Those without machines get their stitching done by payingRs2.50�3.00 per pair of jooti to artisans with machines.

Perception of RUDA

RUDA recognises that the availability of different types of machines in thesub-sector is low in comparison to the number of artisans involved in theproduction of jootis. Artisans are willing to introduce machines into theirproduction process only if these are provided at subsidised prices by thegovernment.

5.6 Interactions of BDS suppliers with artisansThe number of artisans a supplier interacts with for the service and the

Number of suppliers Duration of interaction Content/ nature of interaction

RUDA · Not applicable · Providing sets of lasts to each group along with suitable patterns· With groups of artisans (about 200�300

artisans)

Village-based artisans supplying wooden lasts · 5�10 minutes per artisan · Interaction on the number of wooden lasts to be made, sizes and the· 80�100 artisans per year types of wood to be used

Artisans renting polymer lasts · 5�15 minutes depending on the skill · Information on how to use the polymer lasts and the rent amount· 2�3 artisans per month level of artisans· Retailers/ wholesalers/ exporters · 5�6 minutes per artisan for small · Information on new designs Extensive discussions takes place· 8�10 artisans for retailers, 15�20 for variations in design 20�30 minutes when a completely new design or pattern is to be made

wholesalers and around 20 for exporters for completely new designs orpatterns

Fellow artisans· Not less than 4�5 artisans · From a few minutes to an hour · Sharing of designs, patterns and lasts

depending on the number of mojari producers depending on the nature of input


contents/ nature and duration of interaction is provided in Table 5.2

5.7 Status of supply of the service

Different patterns and designs of jootisAvailability of service

Table 5.3 presents the availability of patterns in sample villages. The tablesuggests that nearly 80% of respondents have only two patterns of mojaris.SMD and Dolma patterns are predominantly used because of their highdemand in the market. Artisans supplying to the Operation Mojariprogramme have access to more than 10 patterns. Artisans linked withexporters, retailers and wholesalers develop their own patterns and have5�7 patterns each.

Table 5.4 shows the percentage of respondents using different sources toobtain new patterns for mojaris. RUDA is the major supplier of patterns.Nearly 85% of respondents received at least one pattern each from RUDA




Table 5.4 Use of different sources

Source % of respondents % of respondents(mojari producers) (traditional jooti producers)

RUDA 85 -

Retailers/wholesalers 17 1 / exporters

Fellow artisans 25 10*

*A few artisans started producing mojari after obtaining patterns from fellow artisans.


Table 5.6 Use of different sources

Source % of respondents % of respondents (tradi(mojari producers) tional jooti producers)

RUDA 50 nil

Sharing among artisans 60 nil

Village-based artisans nil 100

RUDA provides polymer lasts to artisans producing mojaris. About 50% ofthe respondents have obtained lasts from RUDA while lasts from fellowartisans are another major source of supply. In Udaipuria, about 85% ofartisans have lasts for SMD and Dolma but a few artisans have lasts forMyul and therefore share these lasts among themselves.


RUDA Subsidised; public money involved

Retailers/wholesalers Commercial; no public money involved/exporters

Fellow artisans Services are provided based on informalrelationship and without any obvious transactions;unsubsidised

Suitable polymer lasts to match different patterns of jootis

Table 5.6 presents the percentage of respondents using various sources toobtain suitable polymer lasts for jootis.

Village Number of mojari producers Availability of patterns (% artisans)

2 3-5 >5

Udaipuria 400 (~ 85) (~12) (~3)Maanpura Macheri 100 (~ 90) (~5) (~5)Chaksu 30 (~ 80) (~5) (~15)Savardha 30 (~ 85) (~5) (~10)Ramjipurakalan 40 (~ 85) (~5) (~10)

Kharkhara, Booj, · No patterns are available, Majority of artisans have only one pattern of traditional jootisChavandiya, Kundal, · Majority of artisans have only one pattern of traditional jootisPipalkheda, Gudeliya · In Chavandiya, some artisans have one pattern of traditional jooti while a few have another pattern

Table 5.3 Availability of patterns in sample villagesto start mojari production.About 25% of respondentsalso received patterns fromfellow artisans.

Extent ofcommercialisation

Table 5.5 presents the extentof commercialisation of thisservice.



RUDA 11

Shops in Jaipur 60

Extent of commercialisation

Table 5.7 presents the extent of commercialisation of this service.

Machines

Table 5.8 presents the percentage of respondents using various sources toobtain machines.

Nearly 40% of respondents do not have access to any kind of machine.Most of the artisans who have obtained machines from RUDA also havetheir own stitching machines bought from Jaipur. Although machinesprovided by RUDA are for all the group members, they find it difficult toaccess machines � probably because of poor cohesiveness and weak bondsamong group members.


Table 5.9 presents the extent of commercialisation of this service



RUDA Charges Rs 250 for one set of lasts(subsidised up to 90%)

Sharing among artisans Commercial

Village based artisans Commercial: Rs50�70 per pair of wooden lasts

Table 5.8 Procurement of machines from various sources


RUDA Often free of cost; public funds involved

Shops in Jaipur Commercial; Rs2,000�3,000 for stitching machines


5.8 Conclusion

Market-related issues

· Artisans normally use only those patterns of mojaris that have assuredmarkets. However, they may be interested in innovations.

· The supply of polymer lasts at a commercial price may be a limitationas it would require a high level of investment by artisans. Some cheaperalternate besides polymer needs to be found. Suppliers from the privatesector provide polymer lasts on rent.

· In a similar way, services for various machines could be offered for afee � such efforts do not seem to have been made in most of the villages.


· About 50% of respondents are willing to pay for patterns and designs.· There is scope for supplying lasts to match the patterns available with

artisans.

· There seems to be a growing demand for mechanising some of theactivities such as stitching the uppers of traditional jootis and mojarisand shining the uppers of mojaris, sole cutting, and finishing of jootis.

· Lasts and patterns appropriate for jootis with greater market demandare required

· In some villages, artisans have started charging a fee for providingpolymer lasts to fellow artisans. This service can be offered on acommercial basis.

· Leather artisans need to be provided information on machines suit-able for their work followed by demonstration and supply of thosemachines.



6.1 Introduction

The BDS assessment study indicates that about 38% of the respondentswould like to obtain this service in terms of

· servicing and repairs of equipment such as sewing machines

· sharpening the edges of various tools used by artisans

Figure 6.1 depicts the level of demand for these individual services from theartisans who responded positively. Out of 38% of the total respondentswho would like to obtain BDS related to servicing of tools and equipment;68% would like to obtain service related to the sharpening of tools andabout 54% BDS related to the servicing and repairing of tools. There is amoderate but significant overall demand for services related to the sharp-ening of tools and servicing and the repair of equipment.

6.2 Servicing and repair of equipment

Most artisans replace the needles in ordinary cotton textile sewing ma-chines with stronger needles and use these for stitching mainly the uppers

6 Servicing of tools and equipment

Figure 6.1 Demand for the servicing of tools and equipment

of leather jootis. These machines � manufactured for much lighter work �naturally require continuous servicing and repairing.

Expected benefit

· The availability of this service at the village level saves the artisans�time and minimises optimises productivity.

6.3 Sharpening edges of various tools

The front edge of steel tools used by artisans becomes blunt and, as a result,does not cut leather effectively. Therefore, sharpening of the edge at regularintervals of 10�15 days is required. This service is provided to artisans byvillage blacksmiths.

Expected benefit

· Availability of quality service at regular intervals at the village leveloptimises their work and facilitates production activity.

6.4 Sources of supply of the service

Table 6.1 provides a brief description of suppliers of services related toservicing of tools and equipment.

Servicing of machines

The major suppliers of this service are about 8-10 small servicing centreslocated in Jaipur and small towns near the artisans� villages.

Delivery mechanisms

Artisans go to these centres when the machines break down. Dependingon the nature of the problem, the service centre could take two hours to aweek to rectify the machine. Artisans pay in cash for these services.

The pricing of the service usually depends on the type of problems andspare parts used to rectify them. The components of pricing are

0

20

40

60

80

Sharpening edgesof iron tools

Servicing and repairingof equipment

(27% overall)68%

(20% overall)54%


· a fixed charge of Rs50�75 to open up themachine and identify the problem

· the cost of spare parts � usually chargedby service centres with a margin of 5-10%of the cost price

· a charge for the time and effort requiredto rectify the problem.

Suppliers Services Mode of supply

Small servicing centres based in Jaipur and small · Service and repair of equipment, · Commercialtowns near artisans� villages mainly stitching machines

Blacksmiths based in villages or Jaipur or · Sharpen edges of various iron tools · Commercialnearby towns

Table 6.1 Suppliers of services related to servicing of tools and equipment

Business level

The servicing of machines of leather artisans constitutes 20-50% of theoverall business of the service centres. The average sales turnover of theseservice centres ranges between Rs3,000 and Rs8,000 per month.


All service centres have a customer base of their own from different vil-lages. The demand assessment study found that a majority of the artisansfrom one village went to a particular service centre to obtain the service.Knowledge about a particular service centre spreads mainly by word ofmouth.

A few service centres provide artisans with old machines to work with for theperiod during which their machines are being serviced. Some of these servicecentres also give a verbal guarantee of six months for their service to theirregular customers. In case a machine breaks down within the guarantee pe-riod, the machine is rectified without any service charge. Only the cost of spareparts is charged from artisans in such cases.

In house capacity Links

Strengths· Ability to provide quality parts and · Links with suppliers of

services machines spare lubricants for· A strong and loyal customer base comprising servicing

leather artisans from certain villages · With larger workshopsWeakness· Service promotion only by word of mouth

Small servicing centres

Delivery mechanism

Artisans approach blacksmiths based either in the village, or Jaipur ornearby towns for the service. Usually a fee of Rs5-15 is charged dependingupon the size of the tool. There are some blacksmiths with sharpeningmachines who provide this service. The quality of their work is found to besuperior to that of manual sharpening. In this case the effect of sharpeningdoes not wear off as soon as that for manual sharpening. The charge formachine sharpening is Rs10�30 depending on the size. In a few villages,blacksmiths make occasional visits (once in two months) to artisans butthis is not regarded as a reliable service because the visits are irregular.

Business level

Service providers who use machines for sharpening edges have a fixedoperational base from where they provide services to artisans. Besidessharpening the edges of tools used by artisans, they also sharpen edges ofhousehold scissors and agricultural implements. Such service providers

Perception of small servicing centres

Servicing centres do not perceive their operating environment to becompetitive. They are usually satisfied with the business level and do notseem to have much understanding about the demand potential for suchservices.

Sharpening the edges of tools

This service is available through blacksmiths based in villages or Jaipur ornearby towns.





Strengths· Ability to provide quality · Links with coal suppliers

Weakness· Inability to penetrate the market for the · Waste iron stores for

service in nearby villages obtaining raw materials· Word of mouth publicity

attract customers from 8�10 villages situated in their vicinity. Dependingon their capacity, they can sharpen the edge of one tool in 1�1.5 hours.Insufficient electricity supply often hinders the full capacity utilisation ofthe machines. Service providers using the manual method also have a fixedoperational base but they pay occasional visits to different villages andhaats for providing services.


No concerted effort is made by service providers to build a sustained rela-tionship � probably because this service can be obtained from differentsources depending upon the convenience of artisans.

Perception of blacksmiths

Quite a large number of service providers are available in Jaipur and someof the villages in the district. As this service is a time-consuming activity(requiring over an hour) for sharpening the edges of one tool, the amount ofwork gets distributed among all the service providers in the area. The num-ber of service providers using machines are very few but they dominate themarket and have good market share for the service.

According to both types of service providers, artisans in most villages usethis service at an interval of 1.5�2 months not the 15 days claimed by arti-sans. The service is also not a major priority for artisans who continueworking even with blunt edges. The actual demand potential for this ser-vice could only be realised if artisans take up this service regularly.

6.5 Interaction of BDS suppliers with artisans

Table 6.2 describes the number of artisans a supplier interacts with for theservice and the contents/nature and duration of interaction.

6.6 Supply status of the serviceAvailability

Table 6.3 summarises information on the availability of the service. In ad-dition to the places indicated in the table, the service related to the servic-ing of tools is also available in the haat. About 4-5 blacksmiths in the haatprovide this service.

It is evident from the above that artisans in most of the villages do not getthis service at the village level; they lose working time and have to spendsignificant sums of money to reach the service centres.

blacksmiths

Number of artisans Duration of interaction Content/nature of interaction

Service and repair of machines · 10�15 minutes per artisan · Information on the type of problem, requirements of certain· 20�80 artisans per year depending on the location spare parts and service charges

Village blacksmith · 1�1.5 hours per artisan · Information on service charges

· Not fixed, artisans take this service as per requirement.If a blacksmith is based in the village, around 80% of theartisans approach him for the service



takes place for the service. Working with blunt edges reduces productiveefficiency.


The transaction of this service is done on a commercial and cash basis.

6.7 ConclusionsMarket issues

· In order to provide this service, the service centres depend on shopssupplying spare parts. The number of spare parts is very large and thislimits the service provider�s ability to stock them because of limitedworking capital. Therefore, service providers prefer to be based inJaipur/small towns where spare parts can be easily procured whenneeded. Even if service centres are established in villages the servicetime probably cannot be reduced drastically because of their depen-dence on Jaipur suppliers for spare parts.

· Servicing of tools with machines requires an initial investment of nearlyRs25,000 and an electricity supply � irregular supply of electricity inmost villages acts as a restraining factor.


· In about 50% of the sample villages (Annex 7), the demand for repairsand servicing of machines is more than Rs25,000 per year. Artisansusually travel about 20 km to obtain the service.

· In about 55% of sample villages, the demand for servicing of tools isworth Rs5,000 per month (Annex 7). The service is available at thevillage level in only three sample villages.

· Respondents are willing to pay a slightly higher price (5-10%) for theseservices if delivered at the village level.

· The service is available adequately but needs to be delivered at thevillage level. However, artisans do not seem to give very high priorityto this service.

· Wherever this service is not available, blacksmiths could profitablybecome established to provide the service of sharpening tools at thevillage level. There is a substantial demand for this service.

Quality of the service

Servicing of machines

The artisans seem to be satisfied with the quality of service but dissatisfiedwith the time it takes, 3-7 days. Sometimes service providers also delay inrectifying problems because of other pending jobs.

Servicing of tools

As the service is not available in the village, they have to wait until a haat

Table 6.3 Availability of services

Village Servicing of machines Servicing of tools(Distance from the village in Km) (Distance from the village in Km)

Udaipuria · Jaipur (40) · Tigaria (18)· Chomu (8) · Jaipur (40)

Savardha · Jaipur (65) · Jaipur (65)· Dudu (15)

Maanpura Macheri · Jaipur (55) · Tigaria (40)· Chomu (17) · Jaipur (55)

Kharkhara · Jaipur (60) · Jaipur (60)

Booj · No machine in the village · Jaipur (50)

Chavandiya · Jaipur (50) · Jaipur (50)· Village blacksmith

Ramjipurakalan · Chomu (30) · Village blacksmith· Jaipur (60)

Kishengar Rainwal · Kishengrah Rainwal · Village blacksmith(1)

Chaksu · Jaipur � (65) · Village blacksmith

Gudeliya · Dausa � (30) · Dausa � (30)· Village blacksmith

Pipalkheda · No machine in village · Dausa � (60)

Kundal · Dausa � (15) · Dausa � (15)



7.1 Introduction

Artisans need to be registered with the District Industry Centre (DIC) andDevelopment Commissioner (Handicrafts) DCH � governmentorganisations � for purposes such as participation in exhibitions and fairs.In some cases artisans are also required to register with the DIC for obtainingbank loans under government-sponsored schemes. The registration processwith these organisations requires formalities like filling up suitable formsand subsequent follow up with these organisations. The process ofobtaining bank loans also involves filling forms, submission of projectfeasibility reports and a number of other documents related to collateral tobe offered to banks for the loans. In a majority of cases, perhaps due to theirlow education level and worldly exposure, artisans are hesitant to approachthese organisations on their own.

The BDS assessment study indicates that only 16% of the respondentswould like to obtain services for

· registration with DIC, DCH that organise exhibitions and fairs

7 Assistance in compliance with formalities

Figure 7.1 Demand levels for assistance in compliance with norms/formalities

· assistance in obtaining loans from banks and other financialinstitutions

Figure 7.1 presents the levels of demand for these individual services.

Out of 16% of the respondents who would like to obtain the service ofassistance in complying with norms and formalities; about 58% wouldlike assistance in registering with organisations for attending exhibitionsand fair whereas 44% would like assistance in complying with norms andformalities for obtaining loans from banks and financial institutions. Thisindicates that there is some demand potential for services related to regis-tration with DIC and DCH for exhibitions and for obtaining loans frombanks and financial institutions.

7.2 Registration for exhibitions/ fairs

Organisations like DIC, DCH and others offer such participation. Themarket links provided to artisans by RUDA through exhibitions has createda demand for this service. Artisans have realised the potential of exhibitionsin assuring them of a bulk sale and in developing links with wholesalersand retailers from distant locations. Mojaris sold in exhibitions fetch higherprofit margins than through the existing market channels. Information onexhibitions is easily available to a majority of artisans involved in mojariproduction. Therefore, artisans would like to obtain assistance in complyingwith norms to register with organisations that hold exhibitions and fairs.

Expected benefit

· A chance to attend exhibitions and trade fairs in cities all over thecountry for developing links with buyers of the products

· Generating more profit from selling products in these exhibitions

· Understanding demand potential and consumer preference

· Getting an exposure to other similar products sold in these exhibitions

0

10

20

30

40

50

60

70

Registration forattending exhibitions

Obtaining loans frombanks/ financial institutions

58%(9% overall)

44%(7% overall)


Suppliers and Services Mode of supply

DIC · DIC recommends the names of small and micro-entrepreneurs in cluding leather artisans to banks to provide· Assistance in compliance with loans under government-sponsored schemes such as Swarnjayanti Gram Swarojgar Yojna (SGSY � Golden Jubilee

norms for obtaining bank loans Village Self-Employment Programme), Prime Minister�s Rojgar Yojana (PMRY)· Registration with DIC · DIC provides information on registration to artisans on an individual basis

KVIC · KVIC, through banks, provides loans to small and micro-enter prises including leather enterprises. The offices of· Assistance in obtaining bank loans KVIC at the panchayat samiti provide information on various procedures.

Local organisations and NGOs · Under the Rural Industries Program (RIP) of SIDBI, local NGOs assist a small number of leather artisans in obtaining· Assistance in obtaining bank loans bank loans· Registration with DIC, DCH · Local NGOs assist artisan groups associated with them to get registration with DIC, DCH.

Banks/ financial institutions · Banks provide information on different schemes of bank loans to artisans· Assistance in obtaining loans

Table 7.1 Supply of services related to compliance with norms/ formalities

7.3 Obtaining loans from bank & financial institutions

A large number of artisans are unaware of bank procedures involved inobtaining a loan. The demand for this service is mainly from artisans whosebusinesses are expanding or want to increase the scale of their business.

Expected benefit

· To obtain a bank loan and develop a banking relationship to meet thecapital requirements of the business

7.4 Sources of supply of the serviceTable 7.1 presents the sources of supply services related to compliancewith norms and completion of formalities

Registration with DIC, DCH and other organisationsThe major sources of supplier of this service are

· District Industries Centre· Local organisations and NGOs· Fellow artisans

District Industries Centre (DIC)

DIC is a government agency that, as one of its activities, recommends thenames of small and micro-entrepreneurs to banks to provide loans undergovernment-sponsored schemes such as SGSY, PMRY. These recommen-dations are made based on applications received from entrepreneurs andinterviews with them. The information cell of the DIC in each district pro-vides information, individually, on DIC registration to artisans who con-tact them.


Strengths· Strong network of offices in the districts · Strong links with adminisWeakness trative bodies and policy· Lack of adequate initiatives to create makers

awareness among artisans aboutregistration procedures.

· Time-consuming process of registration

District Industries Centre


Assistance in compliance with formalities


Perception of DIC

In order to use various government-sponsored schemes for small and micro-enterprises in village industry, it is mandatory to register with DIC. This isthe reason why there is a high demand for this service. The organisationdoes not hold any view about the possibility of commercialising this service.A majority of artisans are unaware about the requirement of this service.

Local organisations and NGOs

Local NGOs assist artisan groups associated with them to register withDIC, DCH.

Perception of local organisations

Demand for services related to registration with DIC, DCH and otherorganisations that organise exhibitions and fairs is greater among artisansinvolved in mojari production. The demand for this service is moreprominent in Udaipuria village. There is a possibility of commercialisingservices related to registration.

Fellow artisans

Fellow artisans are an important source for assisting in these matters.Artisans who have received such services in the past often provide guidanceand advise fellow artisans based on informal relationships.


Strengths· Ability to gather information from various · Links with DIC and local

government offices (DIC, DCH) regarding administration for infortheir process of registration. mation on various schemes

· Ability to assist artisans in complying withvarious norms for registration withorganisations

Weakness· Limited outreach


Strengths· Strong network of offices at the district and · Strong links with

block levels admin istrative bodiesWeakness and policy makers· Lack of adequate initiative to create awareness

among artisans about the procedures forobtaining loans.


Obtaining loans from bank and financial institutions

The major sources of supplier of this service are

· KVIC

· Local organisations and NGOs

· Fellow artisans

· Banks and financial institutions

KVIC

The KVIC, provides loans to small and micro-enterprises through banks.The offices of KVIC at panchayat samiti level provide information on theprocedures involved.

Khadi and Village Industry Commission

Perception of KVIC

There is huge demand among all sections of artisans for services related toobtaining loans under various schemes of KVIC. Many artisans visit itsoffices at the panchayat samiti level to get information regarding the processof getting loans. The organisation does not hold any view about thepossibility of commercialising this service. Though the demand for theservice is very high a large number of artisans are found to be ineligible forgetting loans because of default on previous loans either by family membersor fellow artisans. In case of default by a section of villagers banks usuallyhesitate to provide loans to the rest of the village as well.



Under the Rural Industries Programme (RIP) of the Small Industries Devel-opment Bank of India, local NGOs assist a small number of artisans inobtaining bank loans.



Strengths· Ability to identify suitable and creditworthy · Links with local administra

artisans because of close working tion, banks and financialrelationships with artisans institutions

· Effective interaction with banks to facilitateloans

Weakness· Limited outreach

Perception of local organisations

The experience of these organisations suggests that there is a demand forbank loans among all sections of artisans. The procedure for obtaining abank loans is time-consuming because of the large amount ofdocumentation that is required. Banks do not seem to favour artisans andoften reject their loan applications on various grounds.

Fellow artisans

Artisans who have received such services in the past often provide guidanceand advice to fellow artisans.

Banks and financial institutions

Banks often provide information on various schemes to artisans.

Perception of banks and financial institutionsThe economic condition of artisans is often not good. They need bank loansto meet consumption as well as business requirements. A number of artisansvisit banks to seek information about the process of obtaining bank loans.

Banks could not comment on commercialising the service. As the amountof loan required by artisans is in relatively small amounts ranging fromRs25,000 to Rs50,000 � banks hesitate to process such loan applications.The annual target of loans often prompts the banks to target clients whorequire big loans. Banks also believe that the increase in the number ofsmall loans leads to increase in administrative work in terms of follow upfor repayment and other formalities. The poor track record of loanrepayments by artisans (under the older government schemes) also acts asa limiting factor to sanction new loans to other potential borrowers in thecommunity.

7.5 Interactions of BDS suppliers with artisans

Table 7.2 presents the number of artisans a supplier interacts with for theservice and the contents/nature and duration of interaction.

7.6 Supply status of the serviceAvailability of the service

This study shows that only 12 out of 134 respondents are registered withany organisation to obtain information about exhibitions. Nearly 7% ofrespondents registered with DIC have not received any information onexhibitions/trade fairs so far.

Only 7 of the 134 respondents have obtained bank loans. Out of these, 5


Strengths· Strong presence · Links with localWeakness administration, other· Lack of systems for providing information to banks and financial

artisans in a manner that will enable them to institutionsunderstand the process

· Unfavourable attitude towardssmall and micro-entrepreneurs

Bank and financial institutions


Assistance in compliance with formalities

Number of artisans Duration of interaction Content/nature of interaction

DIC/KVIC · Around 10 minutes per artisan · Knowledge about the process of registration, documents required· Less than 10% of the artisans have registered· and government schemes

Panchayat Samiti · 10�15 minutes per artisan · Information on procedures for obtaining loans, knowledge of· Around 1�3 artisans per day schemes for getting subsidies and documents required

Local NGOs · On a regular basis until the artisan · Knowledge on how to meet documentary requirements· 15�20 artisans per year to obtain loans obtains loan or is registered with DIC · Knowledge about the process of registration . documents required· DIC/KVIC · Around 10 minutes per artisan registered and government schemes· Less then 10% of the artisans have

Panchyayat samiti · 10-15 minutes per artisan · Information on procedures for obtaining loans. knowledge of· Around 1-3 Artisans per day schemes for getting subsidies and documents required

Fellow artisans · 15-30 minutes per artisan depending · Knowledge of procedures, contact offical and documents required.· Not uniform on the mutual relationship

received assistance in obtaining loans under SIDBI�s RIP programme. Theremaining two received loans in their personal capacity.

Despite the availability of various sources for the service, artisans tend toseek such information mainly from fellow artisans.


The service is provided mainly by government agencies so only publicmoney is involved.

7.7 Conclusions

Market issues· As the service is in demand by only 16% of respondents, its

commercialisation may be difficult.

· Banks and financial institutions do not seem to have a positive attitudetowards the artisan community because of the default on repayment

by members of the community. Therefore, services related to bank loansmay not yield much return in the near future.


· A large number of respondents (mainly mojari producers) are willingto bear all the costs involved in attending exhibitions. Therefore, thisservice could be offered on a commercial basis.

· Service related to exhibitions have a demand potential and could beoffered as a separate BDS but the service related to bank loans couldprobably be packaged with some other services such as training andtechnical assistance.

Table 7.2 Interactions of BDS suppliers with artisans



8 Cross-sector services

8.1 Introduction

The BDS assessment study also made an attempt to assess cross-sectorservices such as transportation, packaging and telecommunication, postal/courier and money transfer services. A brief interaction with a small numberof respondents was made to understand the demand for these services. Thefindings on these services are discussed in this chapter.

8.2 Findings

Transportation and packaging services are used mainly by village levelmarket agents from Udaipuria village to pack jootis in cartons and transportthem to Delhi for sale to wholesalers based there. These market agents hirea truck from a nearby place (preferably from Chomu, a small town around15 km from Udaipuria) and transport cartons to Delhi. The charges forhiring the truck are shared among the village agents based on the numberof cartons of each agent.

There are very few artisans (not more than 2�3) only in Udaipuria who selltheir mojaris directly to Delhi-based wholesalers. These artisans transporttheir jootis to Delhi through village agents.

Artisans from other villages transport their jootis to the Jaipur haat in thingunny bags; they do not pack them in any carton. These gunny bags areobtained mainly from local shops. Artisans use public transport to sendtheir jootis. There is an established system of transporting jootis to theJaipur haat. About 8�10 artisans from a village join together and hire a jeep(a small vehicle) and transport their jootis to the Jaipur haat. Thetransportation cost is shared among them. In villages where jeeps are notavailable, artisans transport their jootis by public buses.

Telecommunications also seems to be a service that is obtained mainly byvery progressive artisans (limited in number) to contact different entities in

the sub-sector � mainly institutions (RUDA and NGOs) involved with thepromotion of the leather sub-sector and buyers. Village level market agentsalso use the telephone service to interact with their buyers to finalise theorders for their products. These services are mainly used by artisans andvillage market agents from Udaipuria village. There are public telephonebooths in almost all the villages from where the service is obtained. Inaddition, there a number of artisans who have their own telephone connec-tions.

A few artisans (2�3) and village level market agents use postal/courierservices and also the money transfer service to obtain information on speci-fications and designs of jootis from Delhi-based buyers and for transfer ofmoney to banks for payments of goods by buyers.

Therefore, the demand for the packaging service is mainly from villagelevel market agents whereas demand for transportation, telecommunica-tion and courier/postal is from both village level agents and artisans. How-ever, artisans give these services less priority mainly because of well estab-lished, commercially viable systems for the provision of these services.

8.3 Future plans

Since these the availability of these services appears to be adequate in rela-tion to the demand, the services will be covered in more detail at a laterstage. The importance of and need for other cross-sector services such asbook keeping, working capital management, costing and pricing of prod-ucts and entrepreneurship development would also be covered. Depend-ing on the requirements and demand levels of these services, they could beincluded during the support and facilitation phase of this programme.

An attempt would be made to explore other possible services these serviceproviders, in particular transport owners, could provide to artisans inembedded or stand-alone forms.


Babool: A medium-sized tree with thorns on its branches. Abundantlyfound in the villages of Rajasthan, it is also known as Acacia. Its bark ispowdered and used for vegetable tanning of skins/hides.

Chrome tanned leather: Leather obtained by the chrome tanning processin modern tanneries using chromium salts, primarily chromium sulphate.Chrome tanned leather is softer and has a better quality and finish. Mostlyused for making the uppers of jooti.

Country tanned leather: Vegetable tanned leather using vegetable materi-als derived from the bark of a tree (babool) and various other plants alongwith small portions of other agents to assist in the tanning process; modifythe leather without changing the essential vegetable character of the leather.The leather is hard and the quality and finishing is inferior to that of chrometanned leather. It is mainly used for making the soles of jootis. Countrytanned leather is used for both soles and uppers in traditional jootis.

Designs: of jootis refer to the different forms and shapes on the uppers ofjootis. Stitches, embroidery, punches, weaving and strips of leather areused to provide designs. In mojaris small wooden beads and discs are alsoused for designs on the upper.

Embedded services: Any services offered with core products by an enter-prise or a supplier are called embedded. Usually these services are not thecore products of these suppliers. For example, assistance or inputs onimproving designs of jootis provided by a jooti retailer to an artisan is anembedded service whereas the retailer� core products are jootis.

Haats: Small village markets � organized mainly on a weekly basis andalso in some villages where hides, tanned leather and leather items aretraded.

Jaipur-based wholesalers: They usually operate from Jaipur and collectjootis from production centres in villages.

Jaipuri jootis: Traditional slip-on leather shoes with pointed toe and noheel. Jootis produced have small variations in designs and shapes and areoften specific to a village.

Last: A solid form of wood or plastic or metal in the shape of a foot. Jootimakers insert lasts in the jooti after stitching the upper and sole to provideproper shape to the jooti.

Leather goods: The term refers to all items other than jootis. These itemsinclude leather bags, purses, key rings, diary covers and ladies bags.

Mojari: These are improved versions of traditional jootis produced duringthe Operation Mojari programme launched by RUDA. The jootis are moreappealing to urban buyers as they are of better quality and finishing, andavailable in various designs.

Panchayat samiti: The lowest level administrative unit often consisting ofa cluster of village settlements.

Pattern: Indicates a complete sketch of the upper and the sole of jootideveloped on a piece of cardboard or a thick plastic sheet. Leather to beused in the jootis is cut using the pattern. Based on the sizes and the typesof jootis, patterns vary. Some of the patterns used in mojari production areSMD, Dolma, Pakeeza, Kowa and Myul.

Polymer lasts: are mostly used in mojari production and are made of solidplastic. They are durable and do not deform with use unlike wooden lasts.Shapes of jootis made using these lasts are much better.

Raigars: Traditional leather workers of Rajasthan. The community belongsto the lowest level of the Indian caste system and is involved in majoractivities in the leather sub-sector such as tanning and the production ofleather items.

Rubber milk: A white liquid used as adhesive for pasting various parts ofjootis.

Glossary of Terms


Sisam: An Indian rosewood tree (Dalbergia sisu). Its wood is used for mak-ing wooden lasts.

Stand-alone service: Any services offered separately as core products byan enterprise or a supplier is called a stand-alone service. For example, atrainer who provides training services to artisans to enable them to makeleather goods provides a stand-alone service for which either a fee is chargedor a specific subsidy is obtained.

Tehsil: A sub-division of a district and made up of upto 100 panchayatsamitis

Upper of jooti: It is the upper part of a jooti that is stitched onto the sole.

Village retail shops: Such shops are generally of two types � exclusiveretail shops for leather accessories or general stores in the village stockingaccessories for jooti production.

Village tanneries: Village tanneries are the major source for the supply ofvegetable-tanned country leather to the Jaipur haat.

Village wholesalers: operate from villages and deal in small volumes. Theybuy jootis directly from the producers and take these to the retailers/wholesalers in various towns.

Wooden lasts: Made of solid wood and used by artisans in particular bytraditional jooti producers. The most commonly used raw materials formaking these lasts are babool, sisam and pras wood.


Glossary of Terms


· Name of the artisan/ enterprise· Location· Age of the artisan· Years in operation

· Details of different activities and operations/functions related to the enterprise

· Kind of products you make – jootis (type of jootis – traditional or mojaris; orleather goods or both)

· Kind of leather and accessories that you buy for making products; method ofprocuring raw materials. Do you go on your own? Frequency of buying rawmaterials? (Ask for samples of products they make, see the raw materials usedand ask these questions based on the raw materials used. An estimate ofrequirement in peak and lean seasons).

· Markets where you sell your products – sale price; methods of marketing. Doyou go to the market on your own or send your products with some fellowartisans; how frequently you go to market for the sale of products? (Try tounderstand all the market channels the artisan use for the sale of products andwhich one he uses regularly and why).

· Kind of tools and equipment you use for the production? If you do not haveequipment for stitching leather how do you get this work done? (Observe varioustools they are using in the production process and ask related questions aboutthem.) Also ask about other equipment related to the production processesthey may have in the house and work on them.

· From where do you obtain tools and equipment? Do these tools and equipmentrequire servicing of any type? Where do you get the servicing done?

· Scale of operation

· Monthly sales turnover (if the respondents do not give this information thendon’t insist; it could be known indirectly.)

· Monthly production capacity or number of jootis produced in a week

· No. of workers/artisans employed, if any (how many family members?)

· Investment in fixed and working capital

· Seasonality in sales, if any. How does it affect employment and sales turnover?

Obtain more information on the following aspects(with initial few respondents in a village)

· Alternative source available for the procurement of raw materials/accessories/tools

· Comparison of regular and alternative sources on following parameters

Checklist of questions for interviewing individual artisans

A Leather sub-sector – BDS assessment

· Any other qualitative benefit/s offered by the alternative source(s) (credit sale,relationship with artisans, payments as per artisans’ convenience, etc.)

· An estimate of the number of suppliers working as regular and alternate sources.

· Is the artisan satisfied with the quality/type of raw materials/accessories supplied tothem? If no, then why?

· Is the artisan satisfied with the existing modes of raw material supply? If yes, why?If no, then reason for dissatisfaction. Suggestions if any about the alternative modeof supply.

· Understanding the reasons behind their inability to access quality raw material/accessories/tools as per their requirement. (Inability could be due to lack of aware-ness of the sources, high cost, etc.)

Annex 1

Regular Source Alternative source (1) Alternative source (1)

Cost

Quality

Availability


Annex 1

Wherever needed, help the artisan explore relationships with them including institutions withwhom he interacts occasionally or on a limited level. These may be institutions such as RUDA(a government agency involved in promotion of the leather sub-sector in the state of Rajasthan),fellow artisans, institutional buyers in exhibitions and fairs, banks, District Industries Centre(DIC), Khadi & Village Industries Commission (KVIC) – both are government agencies work-ing of the small and micro-enterprises. Also give examples – “if you face a particular problemin your business whom do you approach for solutions?” “If you want some inputs and sugges-tion on improving designs of your jootis whom do you approach for this?” These examples willprobably help identifying relationships that may not be so obvious. And the artisan might comeout with some more such relationships.

B Identification of relationships the artisan has with all the per-sons he interacts with for business purpose

Based on the above previous discussions, ask the artisan about all the persons/stakeholders in the sub-sector and institutions he interacts with for different businessactivities. The interviewers should help the respondents in identifying all the businessrelationships.

It would be helpful to the artisans if the interviewers start by saying that “You havebusiness relationships with a number of people such as raw material suppliers, buyers,and tool suppliers. Now we would like you to identify other such relationships.” Thiswould help artisans to focus and explore relationship with other people.

C After identifying all the business relationships, explore eachrelationship in detail

The objective should be to explore all kinds of BDS that the artisan obtains from thesebusiness relationships either in an embedded form with core products or in a stand-aloneform. Also try and understand if he makes a payment to receive these BDS.

The interviewers should discuss each relationship identified by the artisan and try tounderstand all the possible BDS that are being offered and could possibly be offered. Ifneeded, give a few examples to enable the artisan to focus on this aspect of discussions.For example, are your buyers of final products providing some inputs on improvingdesigns of jootis and making some changes in earlier designs? Buyers may also beproviding some information on possible sources for obtaining accessories and specificleather that could possibly improve the design or reduce the cost of production of jootis.

In order to understand the factors that have contributed to their business and income growth over aperiod of time, the following questions should be asked.

· How did your business grow over a period of 5 years? (If a respondent has been in the businessfor say 5 years).

· What inputs (in the form of guidance, information and assistance) have you received and in whatmanner have you received them? (for example an artisan might be receiving some inputs onimproving designs of jootis while supplying jootis to a retailer and interacting with him.)

Responses to these questions will provide an in-depth understanding of services that have mademost significant impact on his business.

Then ask the artisan to identify all such services in the form of guidance, information,business development inputs or help that the artisan obtains from all the business rela-tionships.

Developing a list of BDS based on artisans’ perception in terms of importanceto their enterprises The above discussion will help develop a list of BDS that theartisan receives. Also ask the artisan about services other than the ones listed that hewould like to obtain in order to develop his business or increase the income level from theenterprise. Then, ask the artisan to prioritise these BDS based on the their importance tothe business. Make an attempt to understand the reasons behind the prioritisation.

Then ask the artisan whether he would like to obtain these services. There could be twopossibilities – one when he already is receiving some services and the other when he isnot receiving some particular services but would like to obtain them. (What servicesdemanded by the artisan are available/not available to the artisan?). Ask his responseson both kinds of services so that demand for these services could be estimated.

D Obtain responses on various aspects of BDS identified andcategorise

The discussion should also cover important aspects for each of the services discussed.They are as follows

· Modes of BDS delivery and BDS transaction: For example, are they delivered atthe villages or other places, individually or on a group basis (understand whether




Suitable questions should be asked to obtain responses on the above aspects. In a number ofoccasions, suitable examples could be developed based on other activities in their daily life andasked so that they can easily relate our questions and respond to our questions relating to theirbusiness contexts.

If the response on any questions are not clear, request the artisan to give some practical examplesor ask to explain again. However, this should not be done if the response is clear.

The interviewer should decide, based on the appropriateness and timing and the interest of therespondent, about the sequence of the above aspect for asking related questions. If needed, theinterviewers should also crack some jokes without hearting anyone’s feelings to keep the interviewprocess interesting.

in embedded or stand-alone form; fees paid by the artisan [if applicable])

· Payments for these BDS: Do the artisans make a payment for the service?

· Information on how respondents feel about the quality of services: Is the artisan satisfiedwith the services currently available to him? (Perception of artisans should be sought onaspects like frequency, appropriateness, adequacy and delivery of the services.)

· What improvements could be made in terms of quality and delivery mechanisms of aBDS?

· Willingness to pay fees for BDS: How much if he can tell?

· Awareness about other alternate sources for a BDS

· Expected benefits from each service identified


Discuss in brief on the following

· Which are your preferred sources of procuring raw materials/accessories and toolsand machinery?

· Do you know any alternative sources for procuring these things? From where doyou obtain this knowledge?

· How is your relation with the suppliers? Do they provide necessary suggestionsabout the quality/source of the things they supply to you? Do they seek yourfeedback on the goods they wish to sell? How often do you find them coming up withnew and innovative products and providing you suggestions about using it in yourproduction process?

· Are there any suppliers who provide you the facility of credit purchase? Do youhave any marked preference for credit purchase? Why? What are their terms andconditions? Any disadvantage/advantage in making credit purchase? How manyartisans are availing the facility of regular credit purchase? Why do they prefercredit purchase?

· What are your major expectations from these suppliers in terms of product youneed?

· Any attempt by village artisans to increase their bargaining power by making bulkpurchase? If yes, then give details about the outcome? If no, why?

· What is the existing level of demand of raw material/accessories/tools/machinery inthe village? If artisans show their willingness to get different kinds of raw material/accessories then an attempt would be made to understand the demand potential ofthose things.

A Procurement of raw material/ accessories/ tools/ machinery

Checklist of questions for the focus group discussions with artisans

Discuss in detail the following aspects

B Business Development services (BDS)

Before discussing the following, set the context by saying “we have discussed individuallywith you a number of business relationships you have with a number of people for yourbusiness enterprise and we also discussed with you different kinds of services (in differentforms such as guidance, inputs, advice and information) that help you in your business in someway or the other. Now we are going to discuss some of those aspects with you in a group.”

Annex 2

· What are the support services that you need to develop your business? Just indicate allthe BDS identified and various sources/relationships from where they are obtained –based on the individual interview with artisans.

· Are these services available to you? If yes, then what are the sources?

· Whether the available services are reaching to all the artisans of the village or is itrestricted to only a few? If restricted to only a few, then what are the reasons?

· If there are more than one sources of the service, then what are the relative advan-tages and disadvantages of various sources? (Understand the quality, availabilityof the service and features of those services). Of these sources for different ser-vices which do you prefer most? And why?

· What changes in terms of raw material, accessories and design, pattern have youobserved in your jooti? In your opinion what facilitated these changes and why didyou bring out those changes?

· What problem do you see with the existing modes of delivery of these BDS?

· What improvements do you suggest to make the services more effective? (Try andunderstand what features do they like to have in these services.)

· How many artisans of the village have procured services provided by government/non-government organisations. What is their experience? (Attempt to understandthe impact that has been created through these interventions)

· Do services, which are not available to you, affect your business prospects? Inwhat way will your business grow if those services are provided to you?

· If you feel that the services are important to your business then why did you notmake attempts to obtain them?

· If these services were made available to you as per your requirements then wouldyou be willing to pay a fee for these services? If no, then why? If yes, how much areyou ready to pay? (Where ever possible the respondent’s willingness to pay inabsolute amount would be understood – for example an artisan may say that he iswilling to pay Rs500 to learn the skills for making leather goods.)

Wherever required, facilitate the discussions to ensure that responses and answers toquestions are obtained. Quote suitable examples to enable artisans to respond to yourquestions by relating those examples to their business enterprises and situations.



Checklist of questions for BDS suppliers - Institutions (government/non-government) providing services in stand-alone or embedded forms

A Basic information about the supplier

· Name

· Type of enterprise: private, government, NGO and technical institute

· Working for profit or non-profit

· Main sources of income – fees, grants from governments and other sources

B Types of services offered in general and to the leather artisansin particular

· What services does your organisation offer?

· What specific services/products do you offer to the leather sector in general and tothe rural leather artisans in particular?

· Are services to the leather sub-sector your main activity or supplementary/comple-mentary activities. If supplementary, then what are your main activities?

C Transaction-related information (focus on BDS related to theleather sub-sector and leather artisans in particular)

Focus on BDS related to the leather sub-sector and leather artisans in particular

· How do you offer these services – try to understand delivery mechanisms fordifferent services/BDS? (Try and obtain information on involvement of other per-sons/organisation in the process of delivering services.)

· What has been the outreach of various services provided by you? Are you satisfiedwith the outreach? If yes or no, why? What do you feel about the impact created bythe provision of various services by your organisation for artisans? How can theservices be offered to create the desired impact?

· How many artisans visit you (ask by giving a time-frame such as daily, weekly,monthly or yearly depending upon the type of BDS)?

· Do you charge fees for these services? What are the fees for different services?What are the payment options available for these services?

Perception on services

· According to you, which service is more in demand? Why?

· Is subsidisation of services important or could these services be offered on a com-

Annex 3

mercial basis. If yes, why? If no, why?

· Why do a majority of artisans fail to use the services provided by you?

· Do you see the role of commercial service provider for leather artisans? If yes, whatare the services that have potential to be commercialised? What suggestions wouldyou make to commercialise these services?

· In your opinion, what are the constraints in the BDS market for micro-enterprises ingeneral and leather artisans in particular?

· In your view what are the problems/factors that might hamper the development of avibrant BDS market for micro-enterprises in general and rural leather artisans inparticular? What needs to done to remove those problems?

· What changes in terms of features and delivery is needed to make the servicesmore effective?

In-house capacity

· What kind of technical support do you obtain from other sources to serve micro-enterprises in general and leather artisans in particular? (Understand the linksproviders have with others to improve the quality of services)

· Are there any systems in your organisation by which you obtain feedback fromartisan about the services you offer? If yes, how do you use these information andfor what purposes?

· Do you undertake some market surveys and market research to improve the qualityof service and to develop new products? If yes, how frequently?

· Do you have any future plans to provide other services to the leather artisans?What are they?

· Number of staff members involved with respective services

· Qualification of staff members for respective services


Annex 4Checklist of questions for BDS suppliers offering services in embedded form


· Type of enterprise: private, government, NGO, technical institute, trader, raw materialsupplier, professional, artisan, others

· Years in business/operation

· Number of staff members

· Level of qualification of staff members and the promoter

· Working for profit or non-profit

· Scale of operation – level of investment in fixed and working capital


B Types of services offered in general and to the leather artisans inparticular

· You main activity and products (list down all the main services/products offered bythe supplier)

· Are these products meant exclusively for leather sub sector?

· What is the delivery mechanism of your main products/service?

Try to understand BDS offered in an embedded form with the core products

· Can you recall any incidents when you have provided artisans any services (suchas information about market, knowledge about quality raw materials, informationabout source to procure better quality leather) other than your main core services/products you regularly offered by you? If yes, why did you provide such services?(information, advance money, etc.) Try to understand the reasons.

· Now can you recall any other such services (BDS) that you provide? (Explorewhat related services he could provide to artisans.) Do you attach any importanceto maintaining good business relationships with artisans? If yes, how do you ensurethis? (There is a possibility that in order to ensure continuous business relationship,service provider might be providing useful BDS either in stand-alone or embeddedforms)

· How do you offer these services – try to understand delivery mechanisms fordifferent services/BDS? (Try to obtain information on involvement of other personsin the process of delivering services.)

· Do you feel that artisans are capable in their personal capacity to utilise the servicesprovided by you? Do they need any additional support to properly avail the ser-vices offered by you? What are they?

· Are you observing any change in pattern of demand for your products/services byartisans? If yes, what are those changes? In your opinion, what facilitated thosechanges? Do you feel that change was necessary? If yes, then why? How do youaddress changing demand pattern of artisans?

· Do you feel that your role as service provider is important for artisans? Mention afew roles that artisans feel important for themselves?

· Do you think that your business prospects depend on the business prospect ofartisans? If yes, then what steps do you take to ensure the better prospect for theirbusiness?

· How often do you make attempts to familiarise artisans with new types of raw mate-rial/accessories? How artisans react to new materials/ accessories shown to them?

· Do you charge artisans in any way for the additional services provided by you in aninformal manner?

· What kind of capacity building support would you need to act as BDS supplier?

· How many artisans visit you (ask by giving a timeframe of daily, weekly, monthly oryearly depending upon the type of BDS)

Perception on the services

· Do you see the role commercial service provider for leather artisans? If yes, thenwhat are those services that have the potential to be commercialised? What sugges-tions would you make to commercialise these services?

· In your opinion, what are the constraints in the BDS market for micro-enterprises ingeneral and leather artisans in particular?

In-house capacity

· In case an artisan asks you for some information and guidance and if you do notknow, do you try to obtain them from others? Who are they? (Try and understandthe linkages the providers have with others related to BDS he offers)


Checklist of questions for BDS suppliers offering services in stand-alone form by charging fees


· Name

· Type of enterprise: private, government, NGO, technical institute, trader, raw mate-rial supplier, professional, artisan, others

· Years in business/operation

· Number of staff members

· Level of qualification of staff members and the promoter

· Scale of operation – level of investment in fixed and working capital


B Types of services/products offered by the supplier

· List down all main services/products offered by the supplier.

· Are these services meant exclusively for the leather sub-sector?

· Who are your customers? A brief profile of the customers using different servicesand also information on the

· locations (name of the villages from where artisans come). If possible, distributionof the customer base across different villages.

Transaction-related questions

· Delivery modes of service – in a village or some other places; on individual orgroup basis. Are you satisfied with your delivery mechanisms? If no, how do youwish to make improvements to make the delivery mechanisms of your servicesmore effective?

· Any problems faced while delivering services?

· What are the cost for various services you offer? Gather information for all theservices

· Frequency of purchase of services by artisans; cash or credit purchase.

· Do you attempt to have a sustained relationship with customers? If yes, how? If no,why?

· Do regular buyers get any preferential treatment? In what way? (It could be in theform of credit sale, special rate or some additional/complementary services beingprovided to them)

Annex 5

· Do you undertake any promotional activities to promote your service among arti-sans? If no, then why? If yes, then how? (Sometimes the services/ products arepromoted in subtle way by encouraging credit purchase or secretly offering dis-counts to few customers. The interviewers should attempt to explore such prac-tices.)

In house capacity

· Do you undertake some market surveys, market research and obtain feedbackfrom your clients to improve the quality of service and to develop new products? Ifyes, how frequently?

· Do you have linkages with other people to improve the quality of services? Who arethey?

· Do you have any future plans to provide other services to the leather artisans?What are they?

· What are your strengths and weakness in the BDS provision? Try to obtain hisviews on this.

Try to understand the capacity of suppliers with regard to a market research to under-stand the need of artisans/service users, new product development, costing and pricingof services. Try to understand methodologies and tools suppliers adopt for the purpose.It may be possible that suppliers do not have the required capacity to undertake theseexercises; however if that is the case then through this project we can develop thecapacity of such suppliers during the intervention phase.

Perception on the services· Do you have knowledge about the similar players in the market offering same

services? How your strategy and operations different from them? Do they haveany additional advantages/disadvantages? Discuss in details.

· Do you feel that the service that you are offering is available by any governmentagencies at subsidized cost? (How does it affect your business and how do youcope with this?

· What kind of capacity building support do you need to increase your businessrelated to BDS?

· What opportunities do you see for yourself in the leather sub-sector?

Annex 6Weekly demand for inputs and sources of supply

Demand Supply

Leather Accessories

Udaipuria 175.0 187.0 50.0 25.0 35.0 10.0 12.0 8.0 10.0 10.0 - - - Jaipur (100) Jaipur (100) Jaipur (85)Village (15)

Maanpura 175.0 150.0 50.0 6.0 9.0 2.5 9.0 5.0 2.5 2.5 - - 0.5 Jaipur (20) Jaipur (100) Jaipur (95)Macheri Village (80) Chomu (5)

Kharkhara 7.0 5.0 2.0 - - - 1.0 0.3 - - - - 0.1 Jaipur (80) Jaipur (100) Jaipur (100)Village (20)

Booj 7.0 3.0 2.0 - 0.4 - - - - - 0.3 - - Jaipur (100) Jaipur (100) Jaipur (100)

Chavandiya 60.0 30.0 60.0 - - - 8.0 5.0 - - - - 2.0 Jaipur (100) Jaipur (100) Jaipur (100)Agra (5)

Savardha 150.0 50.0 125.0 - 8.0 - 10.0 5.0 - - - - - Jaipur (95) Jaipur (95) Jaipur (100)Village (5)

Rajipura- 60.0 10.0 60.0 - - 3.5 6.0 3.0 2.5 - - - - Jaipur (100) Jaipur (100) Jaipur (100)kalan

Kishengarh 38.0 60.0 30.0 - - - 3.0 2.0 2.0 - - - - Jaipur (100) Jaipur (90) Jaipur (100)Rainwal Village (10)

Chaksu 125.0 25.0 - - - - 2.5 1.5 3.0 - - - - Jaipur (100) Jaipur (100) Jaipur (100)

Kundal 30.0 3.0 - - 1.0 - 1.0 1.0 1.5 - 0.25 0.3 2.0 Agra (50) Agra (100) Dausa (100)Dausa (50)

Pipalkheda 12.0 8.0 15.0 - - - 1.0 0.5 - - - - - Dausa (100) Agra (100) Dausa (100)

Gudeliya 40.0 20.0 - - 2.0 - 2.0 2.0 1.5 - 0.40 1.0 - Jaipur (100) Agra (40) Jaipur (100)Jaipur (60)

Village Country tanned Chrome LeatherSo

le

Upp

er

Upp

er

Rex

ene

Rub

ber

shee

t/ t

yre

Foam

Thic

k

Thin

Ru

bber

milk

Woo

den

bead

s an

ddi

scs

Nai

ls

Col

our,

polis

h

Oth

ers*

Cou

ntry

Chr

ome

Acc

esso

riesThread

*Others include canvas, wool, paste and flowers

(Rs in thousands) Sourced from (%)


Demand for servicing of tools and equipment

Village Servicing of machines Servicing of tools

No of Machines Annual value of No of tools Monthly valuedemand (Rs) of demand (Rs)

Udaipuria 200 100,000 1,000 15,000

Savardha 50 25,000 450 6,750

Maanpura Macheri 50 25,000 500 7,500

Kharkhara 10 5,000 200 3,000

Booj 0 0 100 1,500

Chavandia 50 25,000 250 3,750

Ramjipurakalan 50 25,000 375 5,625a

Kishengarh Rainwal 70 35,000a 400 6,000a

Chaksu 70 35,000 250 3,750a

Gudliya 30 15,000 400 6,000

Pipalkheda 0 0 125 1,875

Kundal 10 5,000 250 3,750

a indicate the availability of the service at the village level

Note: A machine normally requires at least one servicing in one month and the average service charge is about Rs250. The edges of tools are sharpened onceor twice a month and the average charge is about Rs 15.

Annex 7


Appendix

The traditional leather workers of Rajasthan are from the raigar community – one of thelowest castes in the social scale. They are involved in all the operations of the leathersub-sector in the state such as tanning (mainly vegetable tanning), production of leathergoods and sale of the goods in local markets. Jaipuri jooti (traditional slip-on leather shoewith a pointed toe and no heel) is the main product of these artisans.

Activities in the sub-sector are mapped in a number of figures on the following pages.Note 1 presents a summary of information on competition and market opportunities avail-able in the sub-sector.

Different terms in use by artisans in their local language for articles/materials have beenused at various places in the map and have been described in Note 2 . In the figures,percentages have been shown at various places to indicate the distribution of activitiesinto different components or channels.

An attempt has been made to make the sub-sector map as comprehensive as possible byproviding the process chart for different activities and also by showing inputs and imple-ments or equipment used at different stages in the process. The sources from wherethese inputs are obtained have also been indicated. The size of each activity in the sub-sector has been quantified, wherever possible, and has been presented in a tabular formin the following pages that contain information on aspects such as the number of units,number of artisans engaged in the activity and quantity and value of production. The sizeof each activity pertains to two districts of Rajasthan state - Jaipur and Dausa. All the dataand the percentages indicated here are approximate and have been obtained fromartisans in a number of villages in both the districts (see Note 3 & 4 ) and is also based oninteractions with other stakeholders in the sub-sector.

Figure 1 presents the inter-linkages between different tasks in the flaying process. Figure2 presents inter-linkages between different activities in the tanning process. Figure 3presents process chart of tanning. Figure 4 presents inter-linkages between differentactivities in leather goods production. Figure 5 presents process chart of production ofjootis. Figure 6 presents inter-linkages between various marketing channels. Figure 7presents market channels for jooti/ leather items. Figure 8 presents Inter-linkages betweenall the activities in the leather sub-sector in Rajasthan.

Map of the Leather sub-sector in Rajasthan

SEEP Network – BDS Market Assessment

Overview Chart The Leather Sub-sector in Rajasthan

Jaipuri jootis Leather goods(other than jootis)

Flaying

Tanning(vegetable)

Production ofleather items

Sale

Jaipurhaat

Local villagehaats

Retailers/ wholesalersin Jaipur

Distant markets in cities



~20%~80%

~80%~8-10%

Figure 1 Flaying of hides and skins in the project area

Carcass collectionfrom villages

Removal of hides and skinsfrom dead animals

Owners of deadanimals

Tanning units invillages

Agents dealing in animal skins(Kasai); haats in Rajasthan

~3-4%~1-2%

~95%

~10%

~90%

~80-90%

Haats in Bharatpur,Baanswara and Chittorgarh

~100%

Outside Rajasthan

~10-20%

Size of flaying activity

Jaipur Dausa Total

Total number of artisans 190 65 2551

1 The artisans normally do not carry out flaying activity on a full time basis. They do labour works and devote only a small portionof their time (two days per week) in flaying. The flaying activity is contracted by the panchayats to the families of harijan communityon a yearly basis.

Figure 2 Tanning of hides and skins in the project area

Skins directly from other placessuch as Hapur in Uttar Pradesh

& Mehsana in Gujarat

Tanning in village tanneries

Skins from haats in Rajasthan

~10-20% ~80-90%

Jooti production unitsin the same village Jaipur haat

Tanned leather usedin own jooti

production units

~10-20%

Sale of tanned leather

Jooti production unitsin other villages

Retailers/ wholesalers of jooti

Appendix

Size of tanning activity

Jaipur Dausa Total

Total number of units 200 25 225Total number of artisans 890 75 965 -full time artisans 530 75 610 -part time artisans 355 - 355 (4 months per year)Quantity of leather tanned 3,045 350 3,395 (No. of animal skins per month)


AppendixAppendixFigure 4 Production of leather items

Supply of tanned leatherby traders

Purchase of tannedleather by unit owners

Production unitsin villages

Jaipuri jootis Leather goods

~10% ~90%

~95% ~5%

Size of production activity (jootis & leather goods)

Jaipur Dausa Total

Total number of units 1,850 520 2,375Total number of artisans 6,500 1,020 7,520Quantity of production of jooti (pairs per week) 46,250 11,500 57,750Value of production in INR (million per week) 3.7 0.9 4.6 in US$ (thousand per week) 76.3 18.6 95.0

Figure 3 Process chart of tanning

Procurement of skins

Inputs: Animal skinsSources: Local flaying units, haats inBharatpur, Chittorgarh in Rajasthan,Hapur in UP and Mehsana in Gujarat

Rubbing skins with salt and washingthem with water after two days

Inputs: Common salt and waterSources: Local villages

Dipping skins into solution of millet flourand milk of oak plants for eight days;

repeating the same process after rubbingsalt on skins

Inputs: Millet, milk of Aak plants andcommon saltSources: Local villages

Dipping dried skins into the solution ofBabool bark to add colour

Inputs: Bark of Babool treesSources: Local villages

Stitching coloured skins into largecylindrical pouches, filling pouches with

the Babool bark solution and hanging themfor two days to obtain tanned leather

Inputs: Bark of Babool treesSources: Local villages

Drying tanned leather and rubbing it witharandi (castor) oil

Inputs: Arandi oil (castor)Sources: Local villages

Removing skins from the solutionand drying



Figure 5 Process chart of production of jootis

Inputs: Tanned leatherSources: Village tanneries, owntanneries, Jaipur haat and Agra

Tanned cow/ goat leather forupper of jootis

Inputs: Common salt and waterSources: Local villages

Softening leather and cutting it accordingto size and shape of upper

Implements: Rapa, Rapi and smallhammerSources: Blacksmiths in villages

Stitching the edges of the upper of jootiImplements: Leather sewing machine(~20% of the artisans; and ~80% eitherhires or uses cloth sewing machine)Sources: Jaipur dealers

Putting designs on upper with the help ofstitches and embroidery

Inputs: ThreadSources: Local village and JaipurImplements : Aar, AryaSources : Blacksmiths in villages

Pasting soft leather preferably goatleather on the lower portion of upper of

jooti

Inputs: Rubber milk and tanned goatleatherSources: Local village and Jaipur

Procurement of tanned leatherand cleaning it with edible oil and water

Tanned buffalo leather forsole of jootis

Implements: Rapa, Rapi and smallhammerSources: Blacksmiths in villages

Softening leather and cutting itaccording to size and shape of sole

Inputs: Rubber sheets and rubber milkSources: Local village and Jaipur

Pasting rubber sheets at the bottom ofback portion of the sole

Inputs: Foam and rubber milkSources: Local village and Jaipur

Pasting foam on the upper portionof the sole

Inputs: ThreadSources: Local village and JaipurImplements : Aar, KatarSources : Blacksmiths in villages

Stitching sole and upper together

Polishing the sole of the shoe anddrying it in shade

Inputs: Sole polishSources: Local villages and Jaipur

Implements: Raapi, Khabira andshoe-frameSources: Blacksmiths andcarpenters in villages

Finishing of jooti and putting it in shoeframes to provide a proper shape

Appendix

AppendixFigure 6 Sale of leather products - Interlinkages between various marketing channels

Leather goods

Sale of leather products

Jaipuri jooti

Local villages/ haats Jaipur haatRetailers/ wholesalers

in JaipurDistant markets in

metro cities Exhibitions and fairs Retailers/wholesalers in Jaipur

~5% ~60% ~25% ~5-10% ~60-65% ~35-40%



Figure 7 Market channels for jooti/leather items

Local village retailers/ haats

Villa

ge p

rodu

ctio

n ce

nter

s

Jaipur/ Dausa haats (artisans/agents)

Village level wholesalers

Retailers in Jaipur/other towns

Distributors in urban centers like Delhi

Metro single product retailers

Village consumers

Jaipur based wholesalers

Urban middle-income consumers

Urban high-income consumers

Metro multi-product retailers

~10%

~5%

~60%

~15%

~5%

~5%

~30%

~70%

~25%

~75% ~100%

~100%

~60%

~100%

~40%

~50%

~10%

~30%

AppendixBusiness Development Services: Market Assessment

~20%


Figure 8 Inter-linkages between all the activities in the leather sub-sector in Rajasthan

Metro single - productretailers

Carcass collection

Flaying

Supply of skin and hides to tanning units

Tanning

Supply of tanned leather

Production units in thesame village

Jaipur haat Own production units

Production unitsRetailers/ Wholesalers

Production of leather items

Chittorgah, Bharatpur andBaanswara haats in

Rajasthan, Hapur in UP andMehsana in Gujarat

Jaipuri/ desi jooti Leather goods (other than jooti)

Jaipuri/ desi jooti Leather goods (other than jooti)

Sale

Metro multi - productretailers

Sale

Local village/ haat

Village wholesalers

Retailers/ wholesalersin Jaipur

Jaipur/Dausa haat

Exhibitions and fairs

Retailers in Jaipur

Rural consumer

Urban high -incomeconsumers

Urban middle -income consumers

Distributors in metrotowns

Appendix

*Continued *Continued

* *



1 Competition

Jooti

There are no medium or large scale companies at least in Jaipur and Dausa district ofRajasthan that produce jootis similar to those produced by artisans. These jootis are producedin various designs exclusively by artisans in Rajasthan and cater to different market segmentsincluding rural and urban consumers of various income groups. There are no importsproducts of this kind that compete with jootis. Further, we have not so far come across anyother inexpensive slip-on shoes other than jootis. Therefore, this is an exclusive product inthis product category.

There is tough competition in the market for the jooti product. Jootis face competition in themarket mainly from modern footwear which is a substitute for jootis. The level of competition isdifferent in different market segments. Rural consumers mainly from the low income categoryhave the choice of using low priced plastic and other synthetic footwear. Urban consumersmainly from middle and upper income groups prefer modern leather shoes or sandals frombranded and unbranded companies. There does not appear to have been any growth in thedemand for jootis in any of the consumer segments including rural consumers.

One of the main reasons for this perceived by the EDA team is that in areas other thanRajasthan and Punjab people wear jootis occasionally and they do not treat this footwear assomething to be used on a daily basis. There is some potential in the export market due toethnic characteristic of jootis but this needs to be explored further. The demand for jootis in allmetropolitan cities can be explored since this product can be attractive to high income groupconsumers as an ethnic fashion accessory.

Therefore, jooti is a product that seems to have a demand potential restricted by fashion trendsand regional preferences rather than being a product for a modern mass market. Presentlyjooti production is associated with the following characteristics

· A low return to artisans from the activity

· A decline in overall market demand; however export potential can be explored

· Market constraints, as discussed above

· The young generation not very keen on using jootis since they prefer modern footwear

Leather goods

Leather goods production in Rajasthan is very limited because artisans do not have adequateskills to produce them even though they have the basic skills of leather stitching. There is amass market for leather goods in domestic and overseas markets. People from all incomegroups use leather goods – such as handbags, wallets/purses and belts – in their daily life.

There is tough competition in this product category. There are a large number of small,medium and large enterprises that produce branded and unbranded leather goods fordifferent consumer segments. There is a general perception that the demand for leathergoods is increasing in the domestic and international markets and it is likely to increase in thefuture also. There is a good level of return to artisans from the production of leather goods.

2 Market opportunity in the sub-sector

Based on the present market trend for jootis and leather goods, at this stage, it seems thatenabling artisans to produce leather goods that have a mass market could be an appropriatestrategy for increasing returns to artisans. Simultaneously, other markets including exportscould be explored for the jooti product. This leads to the identification of appropriate BDS fordifferent stakeholders and players in the market chain so that artisans eventually start producinga variety of leather goods and increase the proportion of leather goods production gradually.BDS could be offered to artisans on technical and design inputs.

The capacity of private suppliers who can provide quality BDS to artisans for leather goodsproduction could be built so that the provision of appropriate services to artisans and otherplayers in the market chain could be ensured. In this way, artisans would serve the increasingdemand for leather goods and generate reasonable return from the activity. For this purpose,appropriate strategies for promoting BDS suppliers for leather goods promotion will need tobe developed.

Note 1

Appendix


Description of the terms used in the sub-sector map

Aar A sharp iron implement to make holes in leather.

Aak plants Small plants grown in villages. Their stems ooze liquid like milk when broken.

Arandi oil Castor oil is locally known as arandi oil. It is thick yellowish oil extracted fromcastor seeds.

Arya A smaller version of Aar.

Katar A thick iron needle with a hole at one end to hold threads and a woodenhandle at the other end. It is used for stitching the sole and the upper of jootis.

Babool A medium sized tree with thorns on its branches. Abundantly found in thevillages of Rajasthan it is also known as Acacia. Its bark is crushed to powderand used in the vegetable tanning of skins/hides.

Haats Small village markets – organized mainly on a weekly basis and also in somevillages where hides, tanned leather and leather items are traded.

Jaipuri jootis Traditional slip-on leather shoe with a pointed toe and no heel. Jootis producedhave small variations in design and shape and are often specific to a village.

Jaipur based wholesalers They usually operate from Jaipur and collect jootis fromproduction centres in villages.

Kasai People from the Muslim community, mainly involved in collecting skins and

hides from villages and selling them at haats in Chittorgrah, Baanswara andBharatpur in Rajasthan and Hapur in Uttar Pradesh.

Khabira A small wooden piece with pointed flat edge on one side. It is used to smoothenand shine leather.

Leather goods The term refers to all items other than jootis. These items include leatherbags, purses, key rings, diary covers and ladies bags.

Raigars The traditional leather workers of Rajasthan. The community belongs to thelowest level of the Indian caste system and is involved in major activities in theleather sub-sector such as tanning and the production of leather items.

Rapa It is an implement made of iron with one side cylindrical and the other flatsharp-edged. The cylindrical portion is partly inserted into a wooden handle.

It is used for cutting and peeling skins/hides.

Rapi A sharp edged implement to cut leather

Rubber milk It is white liquid used as adhesive for pasting various parts of jootis.

Village wholesalers They operate from villages and deal in small volumes. They buy jootisdirectly from the producers and take these to the retailers wholesalers invarious towns.

Note 2

Appendix



Sno. Villages Flaying Tanning Jooti making Leather item production#

Artisans^ Units Artisans Units Artisans Units Artisans1 Udaipuria 5 2 5 100 350 4 82 Savarda 9 3 15 90 300 5 83 Ramjipurakalan 5 - - 80 300 - -4 Mandabhim Singh - 5 30 30 100 - -5 Chaksu 5 1 4 50 300 - -6 Chandwania 3 - - 50 150 -7 Grah * - - 30 35 - -8 Boraj 2 1 3 15 25 - -9 Sakhun 5 2 5 7 25 - -

10 Manpur Macheri 10 30 200 100 400 - -11 Naraina 6 10 40 30 100 - -12 Baskho * - - 50 150 - -13 Jatwara * - - 5 15 - -14 Raisar 5 4 15 20 80 - -15 Aandhi 5 - - 25 75 - -16 Kisan manpura 5 20 50 40 150 - -17 Dudu 8 5 20 50 250 - -18 Bagru 10 7 40 12 50 - -19 Dantry 5 3 12 3 15 - -20 Jhaag 5 2 8 5 20 - -21 Mailah 4 - - 5 20 - -22 Jobner 4 - - 12 50 - -23 Kaalbaad 4 - - 10 40 - -24 Kesupura 4 3 12 5 12 - -25 Gilana 5 10 35 - - - -26 Ramgrah 3 - - 6 20 - -27 Rainwal Manjhi 4 - - 20 100 - -28 Bassi 4 5 20 5 25 - -29 Sunaria 3 1 5 8 25 - -30 Sambhar 5 - - 15 100 - -31 Khowarani 5 1 5 20 100 - -32 Kharkara 5 - - 40 100 - -33 Asalpur 4 1 5 10 30 - -34 Habaspura 3 1 4 7 10 - -35 Harsuli (Ramnagar) 4 3 12 10 35 - -36 Ramnagar * 2 8 6 25 - -37 Kishengrah Rainwal 5 4 15 50 200 - -

Note 3

Leather sub-sector - village wise units and artisans - Jaipur district

Appendix


Note 3

Leather sub-sector - village wise units and artisans - Jaipur district (Contd.)

Appendix


Artisans^ Units Artisans Units Artisans Units Artisans38 Itawah Bopji * 3 15 6 20 - -39 Tigaria * 1 4 4 15 - -40 Dhanauta 5 - - 30 100 - -41 Mundru * 15 60 5 15 - -42 Samod 5 - - 20 80 - -43 Daudsar 4 - - 10 30 - -44 Anopura 4 3 15 50 150 - -45 Manoharpur 6 - - 50 200 - -46 Lakher * - - 25 100 - -47 Triveni Saiwad * 12 50 10 50 - -48 Baarijodi * 12 50 10 50 - -49 Khelna * - - 5 10 - -50 Khoribidara * - - 12 40 - -51 Achrol 4 - - 25 75 - -52 Majipura * - - 12 30 - -53 Raghunathpura 5 25 100 25 100 - -54 Chomp * - - 15 45 - -55 Daulatpura * - - 30 100 - -56 Durga Ka Bas * 2 8 15 50 - -57 Jahota * - - 25 75 - -58 Jairampura * - - 30 90 - -59 Naupura * - - 30 90 - -60 Palawala Jatan * 1 5 15 50 - -61 Tunga * - - 25 75 - -62 Kot khawada * - - 25 80 - -63 Mauzamabad * 1 4 15 50 - -64 Booj * - - 35 100 - -65 Madhorajpura * - - 25 75 - -66 Phagi * - - 25 75 - -67 Manoharpura * - - 40 120 - -68 Hanuthpura * - - 50 150 - -69 Dungri Khurd * - - 50 150 - -70 Gudda Mansingh * - - 30 100 - -71 Bhainsawa * 2 8 30 100 - -72 Bhainsalana * - - 20 80 - -

Sub total (A) 192 203 887 1,850 6,502 9 16




Artisans^ Units Artisans Units Artisans Units ArtisansDausa District

1 Lavan * - 5 10 - -2 Bairawas * - - 25 50 - -3 Badagaon 4 - - 12 25 - -4 Gudliya 4 - - 80 125 - -5 Baswa 8 3 10 50 60 - -6 Kundal 5 - - 50 150 - -7 Bichha * - - 10 20 - -8 Hammas * - - 3 8 - -9 Baniyana 5 - - 2 4 - -10 Govindpura 3 - - 4 8 - -11 Daulatpura * 8 24 10 30 - -12 Bairas * - - 30 50 - -13 Kallawas * - - 20 35 - -14 Kaluwas * - - 18 25 - -15 Peepalkheda 5 5 10 25 40 - -16 Sainthal * - - 15 25 - -17 Nangal * - - 2 6 - -18 Deedwana 5 - - 5 10 - -19 Alooda 5 4 12 30 80 - -20 Lalsot 10 - - 15 30 - -21 Bhaidoli - - - 25 30 - -22 Vishunpura - - - 10 35 - -23 Malwas - - - 4 15 - -24 Bandikui 10 - - 2 6 - -25 Jairampura - - - 2 6 - -26 Bhandarej 6 20 65 140

Sub total (B) 64 26 76 519 1,023 0 0Total (A+B) 256 229 963 2,369 7,525 9 16

Note 4

Leather sub-sector - village wise units and artisans - Dausa District

^ The number indicated refers to the estimated number of members who have received contracts from Panchayat Samitis for undertaking flaying. This also includes other artisans who are occassionally hired by contractorsfrom time to time.* Data not available; and “–” indicates non existence of units and artisans related to the activity.# refer to leather items other than jootis like key rings, diary cover, purses, leather bags and ladies bags.

AppendixBusiness Development Services: Market Assessment


Market Assessment of Business Development Servic assessment of BDS... · This market assessment of business development services ... to be at the lowest level of the social caste

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