The Hindu Business Line : Gurjari showroom in Mumbai to close down

This is the second showroom being closed by the corporation that has provided thousands of artisans in Gujarat an occupation and put its traditional embroidery and handicrafts on the commercial map. The Lucknow showroom was closed down last year.

The 25-year-old Mumbai outlet, once a popular destination for original Gujarati fabric and handicrafts, was located at the busy Churchgate area.

According to an official of the corporation, the showroom, which employs 15 people, will be closed on March 24. The corporation will absorb at least five employees and the rest will be offered VRS. Countrywide, Gurjari has 350 employees.

According to the official, the owner of the premises that housed the showroom wanted it vacated. Gurjari is losing sales because the exclusivity once associated with it is now on the decline with look-alikes being sold everywhere. In addition, the Maharashtra Government levies a tax of 15 per cent on handicrafts, which Gurjari has to absorb to stay competitive in the market.

When contacted, Mr P.G. Trivedi, Managing Director, Gujarat State Handloom and Handicrafts Development Corporation, told Business Line that the board of directors had decided to close the Mumbai showroom and would not open another in the city as the corporation was facing an acute funds shortage. He added that it was considering closing financially unviable showrooms.

According to an official, the Mumbai outlet needs to have an annual sales turnover of Rs 1.5 crore just to break even, but last year it was able to make sales of only Rs 50-60 lakh. Gurjari Mumbai saw its best years between 1991 and 1995, grossing its highest turnover of Rs 2 crore in 1993-94 — when the Gujarat handicraft's was on a high.

The scenario, say some industry members, is much the same for handloom and development councils of the different States. The decline has been attributed to competition from cheaper products and even the artisans doing business with other parties on the side. Ironically, buyers usually approach the artisans at State-sponsored `melas'.

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