Job work or Marketing: Dilemma of Bagh Printers
Bagh is a small tribal village of Kukshi tehsil in Dhar district of Madhya Pradesh in India. It is almost 150 kilometers away from Indore city which is known as the industrial capital of the state. The village was named Bagh after a famous temple in the village called “Maa Bagheshwari”. . This place is also famous for its 6th century Budhhist caves “Bagh Caves” which are known for its rock painting. These attractions made Bagh a famous tourist destination but due to insufficient infrastructure and inadequate public transport system it has been neglected since last 10 years.
Bagh is also known for world famous hand blocks printing art known as “Bagh Print”. Some 5-6 years ago there were more than 35 master craftsmen and more than 750 artisans were working in this business. Craftsmen sold 70% of their produce in Bhopal market and 30% to the rest of the world. But there are not more than 15 master craftsmen and around 300 artisans earning their livelihood from business of hand block printing.................
Job Work – Process
For the craftsmen involved, job work meant providing production facility to intermediaries and charging the labor cost involved in it. Middlemen would know the market, the customers and would have all the resources but would not have the required skills to produce. On the other hand craftsmen have skills but lacks in resources and market..........
Bagh Print – Marketing
Master craftsmen, involved in the production and marketing of hand block print fabrics, adopted an entrepreneurial marketing strategy to sell their products in the market.
These micro level entrepreneurs mainly produced dress material, ladies garments (unstitched suits and Sarees), bed sheets and pillow covers to sell it to retail customers through their factory outlet, craft melas (Fairs) and exhibitions and also to supply it to big retailers in major cities within India............
Export of Handprinted Fabrics
India’s contribution to the export of handicrafts is less than 2% in the world market but still it is providing livelihood to many in India. USA, UK, UAE, Germany, Australia, Netherland, Canada and Latin America are the major importers of Indian handcrafts all over the world. For hand printed textiles category, countries like USA, Germany, UAE, UK and France are the major importers in terms of revenue generation and percentage-wise contribution for the year 2012-13 and 2013-14 (Exhibit IV)..........
Bagh Printers’ Dilemma
Rural handicraft sector is mainly an unorganized industry and comes under the unregulated market4. There were total 34 craftsmen working in Bagh independently, following different quality standards, raw materials and pricing strategy. For instance, Bagh printed cotton fabric can be available from INR45 per meter to INR100 per meter which would vary in quality standards............
Assignment Questions
I. What should Mr. Ankit do in this situation?
II. .............
Exhibits
Exhibit I: Pricing Details of Job Work
Exhibit II: Pricing Details of Craftsmen cum Entrepreneurs
Exhibit III: Market-wise Sales Share (in %)
Exhibit IV: Exports of “Hand Printed Textiles”(In INR crores)
Exhibit V: Break-up of Job Work and Entrepreneurship in 2005
Exhibit VI: Break-up of Job Work and Entrepreneurship in 2012