The Hindu Business Line : Facelift for 350 Khadi outlets

In the first phase, about 150 outlets will be computerised at a cost of Rs 1.5 lakh each, which will include Rs 50,000 to improve their general appearance.

According to Mr Haresh Shah, Member, KVIC, the process could take anywhere between six months and a year. CPKVI (Confederation for Promotion of Khadi and Village Industries), the marketing arm of KVIC, is hoping to increase this number to 350 in a year's time.

The 350 outlets, of about 7,500 countrywide, will be shortlisted on the basis of how well they are poised to make the best of their opportunities.

The computerisation will also put in place a Management Information System, which will help the outlets co-ordinate a back-end-supply procurement system and activity among all its member units.

This, Mr Shah said, would also allow various players within KVIC to have a sectoral view of their areas of business, create a system that stores market intelligence, data and a design bank. These are intended to strengthen operations and create synergies in KVIC.

The KVIC participants have already made some headway in capitalising on internal opportunities. They have targeted Government departments such as the Railways and Defence and Paramilitary as captive sources of business. The CPKVI has managed to get the KVIC units to arrive at competitive costing for products such as blankets, shoes, specific building materials and more, to compete for orders. This opportunity churned up Rs 14 crore in contracts in 2002-03, with Rs 8 crore in orders for white towels alone. The KVIC is hoping to target Rs 50 crore in similar contracts in 2003-04.

As part of enlarging the scope of khadi business, in October 2003, an ITDC retail outlet was set up in the exit lounge of the Indira Gandhi International Airport in New Delhi, and is being run jointly by CPKVI, Trifed and the Development Commission of Handicrafts. If the experiment proves successful, more could come up at other international airports around the country.

Also, to create more business for KVIC, the CPKVI is organising institutions, installing and upgrading quality control measures and taking on a number of consultants to instruct units at all levels. It is also joining hands with financial organisations such as Deloitte & Touche and HDFC to unlock and reassess the true value of KVIC's assets, estimated at more than Rs 1,000 crore.