The Hindu Business Line : KVIC in revamp mode; to focus on marketing, improving quality

A NEW YEAR, new clothes, new ideas. That's the action plan Khadi Village Industries Commission (KVIC) is due to follow in 2004, with the help of its marketing arm, Confederation for Promotion of Khadi and Village Industries (CPKVI).

According to Mr Haresh Shah, member, KVIC, the organisation is in a revamp mode, placing emphasis on marketing, upgrading products and improving quality.

Khadi represents only about Rs 500 crore of KVIC's annual turnover of over Rs 10,193 crore turnover for the year ended 2003 — an imbalance that is important to rectify.

It planned to change this, Mr Shah said, through a computerised design data bank, raising quality parameters, setting up swatch banks and strengthening backward linkages.

It is providing greater thrust to the `Khadi' brand, through a range of new products, a series of exhibitions and fairs and co-operative foreign ventures. For example, a four-member team was earlier invited by the South African Government to study whether the khadi village industries model could be applied there.

The outcome: A shop is due to open in Durban this month, under the aegis of the Durban Metropolitan Authority, which if successful could generate employment for South Africans. `Khadi' products such as soaps and natural shampoos have a good retail presence in the US.

The CPKVI is also working with young designers to change khadi's image.

Mr Shah said a recent survey revealed that a large percentage of young people favoured khadi as an eco-friendly clothing option, but considered it dowdy.

CPKVI is a sponsor of the Femina Young Designers Contest in January in Mumbai. There will be 340 designers participating, 30 of whom will be shortlisted. Each of the contestants will have to create a range of designs in khadi, most of which will be stored in the design bank. The winners will be given floor space to showcase their designs.

The emphasis now for khadi prêt, Mr Shah said, would be on cuts and silhouettes. The collections would be displayed at the corporation's premium captive spaces in the heart of Mumbai's business district.

But this range is not going to go the rebate way. The average khadi buyer is an annual buyer, who waits for the rebate period and is over 50 years of age. All of this consumer's khadi purchases are well planned.

The new range will be aimed at clientele as young as 16-23 years, where impulse buys worth about Rs 400 to Rs 1,200 are not an uncommon phenomenon.

CPKVI is also in talks with large retailers to stock the new collection.

The corporation had recently launched a range of products called `Khadi,' which include natural soaps and shampoos, honey, papads and masalas. They are also being sold at 16 large retailers, among them are Shoppers' Stop, Crossroads, Premsons and Haiko.