NURPUR SILK MILLS

A HERITAGE SILK MILLS SINCE 1964

A Unit of Himachal Pradesh General Industries Corporation Ltd.
Index

 History Snapshot
 Process at NSM
 SWOT analysis
 Factual analysis
 Manpower & Machinery Index
 Hurdles and their way outs
HISTORY SNAPSHOT
 History Snapshot of Nurpur Silk Mills, Nurpur
 During 1964 Government of Punjab set-up this unit under Industry department of
Government of Punjab with sole purpose to make this as Silk centre of “North” Like
Bangalore as Silk Centre of South. The benefit of this area as Train, Road and Air
Connectivity nearby and good water availability. It was made by purpose of Silk From
Himachal, Punjab , J & K and Upper parts of UP collected here and sold from 1 roof and
left out silk cocoon convert into Silk Yarn and sold across nation. Central subsidy as well
as entire support of Government available to unit.
 Latter on 1977, it was given to Himachal Pradesh Government, Department of Industries
and then on early 80’s it went to MIDC and on 1988 it went to HPGIC for working. This
unit was producing Silk Yarn, Carpets and Silk Cloth. During late eighties carpet section
was closed and latter during early 2000 yarn manufacturing also closed as factory was in
huge loose since 1988. Around 250 workers were placed in this unit during eighties.
 Current Scenario
 During early 2000, 2/3 part of factory was taken aback by Industry department (Sericulture
wing) on lease to run training and demonstration centre on main building campus, where
reeling happen and 1/3 part is left with HPGIC where silk fabric weaving and selling
happens.
 While 1/3 part where 5 looms are placed, currently HPGIC is running is utilizing on 20% of
capacity as to liquidate old piled stocks of fabric both printed and un-printed. Around 50 – 54
lakhs rupees of fabric stock available ( Subjected to Audit)
 1/3 part , which was run by HPGIC having 3 regular staff, 2 regular worker and 4 peace
rated worker with 1 part time sweeper.
 “ Here important to understand that 1 factory is run by 2 stakeholders, which give signal to
people of state that factory is not working properly and spoil the Name of the Heritage
Industry”
PROCESS OF NSM
Process Flow from Yarn to Silk Saree at Nurpur Silk Mills

Soaking & Sorting

Degumming of Grey
of Silk Filament Weaving Loom finished Fabric
yarn

Finished fabric or
Twisting of yarn for
Section Drafting for SKU to Customer
Weft & doubling &
warp beam after printing &
re-reeling for Warp
dying
Silk Fabric variety Produced in Factory

 Chiffon (40 +/- 4 Gms) pure silk – Sarees, Dupatta

 Chinnon (40 +/- 4 Gms) pure silk – Sarees, Dupatta & Dress material
 Crepe (60 +/- 5 gms) pure silk – Sarees, Dupatta & dress materials
 Tabby Silk (30 +/- 2 gms) Pure Silk – Scarfs , Dupattas
 Chiffon & Chinnon Pure Silk Zari Sarees
 Satin Silk fabric – 40 to 50 gms for dress materials
 Silk Wool Fabrics – for Shawls, Suits , jackets & mufflers
 Silk Modal fabrics – For dress material , Sarees, kurta pajama & Shirts
SWOT ANALYSIS
SWOT Analysis
Strengths
• Hill State has best climate to
Bivolten Mulberry Silk.
• Low Labor Cost intensive state.
• Traditionally into handloom business
of Textile fabric like wool, so putting
silk is easy.
Opportunities
• Northern market expect Kashmir never
focus on silk as business, thus can be
first to lead in Silk business like in south.
• FDI as well as retail expansion in Nation
as well as State is opportunity.
• GOI schemes like start-up extra will help
to develop HP art in Silk across Globe.
Weakness
• Lack of proper technological and skill
development support in field of Silk.
• Market is not supportive to silk business
due to colder region.
• Integrated business line like Reeling to
weaving is not available.
• Lack of Business markets
Threats
•Shifting of Youth interest from Silk
business as well as low cost to
farmers will tends to close sericulture
activity.
•Technological unawareness leads to
develop outdated products defame
image.
•Chinese as well as Southern India
Low-cost product is major threat to
build market.
FACTUAL ANALYSIS
 Analysis of Sale & Stock Vs manpower & purchases in lakhs

Note: In textiles production is inversely proportional to cost of goods, here ideal manpower cost increase while production decreases
Sales Vs P&L Account

Year Profit/Loss Sale

2009-10 (-) 08.76 30.37

2010-11 (-) 28.75 29.73

2011-12 (-) 24.47 35.85

2012-13 (-) 14.74 30.67

2013 -14 (-) 06.12 43.29

2014 -15 (-) 07.14 31.68

2015 -16 (-) 20.46 34.88

Note: Aggressive sales campaign with in state as well as outside state with government support in
2013 -14 boost the sales.
Where as Ideal wages in lower in production with marginal sales in 2015 -16 increases losses.
 Campus Depth analysis
 Total land of NSM with residential block is 32
Kanal 12Marla (All Free Hold from Govt.)
 Factory has following area:
 Reeling Shed cum main office complex – lease out
to sericulture
 Weaving shed Residential Complex
 Preparatory shed & showroom
 Chokidar Hut cum rest house & 2 room new office

 Residential Complex
 Single room set – 12
 Double Room set – 5
 Three room set – 1
 Four room set - 1

 Factory own water supply through well

 Factory own street lighting system
 Residential Complex – Other income sources

Type NSM Other Govt. Vacant Type Income Income Loss due
employee employee NSM Other to vacant
occupancy Occupancy
Type 1 424 7000 1000

Type 1 4 7 1 Type II 0 1600 6400

Type II 0 1 4
Type III 0 2000 0
Type III 0 1 0
Type IV 1 0 0 Type IV 898 0 0

Note:
1. If fully Occupied – Income = Rs. 19322 / Month & Annual Income = Rs. 2.32 lakhs (Approx)
2. Residential complex last maintenance held in 1988, when GIC take over, hence forth no repair and
complex is in bad shape.
3. If maintained & repair, it can fetch better revenue.
4. Few staff left accommodation due to worst staying conditions.
CPF Liability of Secondement Staff & Worker

Department Staff Strength from 1999 Due till 31/3/17

Health Department 28 Rs. 39,98,550/-
Industries Department 4 Rs. 29, 426/-
Revenue Department 1 Rs. 18,730/-
Total CPF recoverable from various department Rs. 40,46,706/-

Here we want to highlight that, we are paying up current around 3 to 4 lakh rupees every
year as CPF contribution of employer share of the employees who are borrowed by
other department and it leads to loss at NSM account, where as we send individual
letters to department many times and request HO to follow-up on same.
MANPOWER & MACHINERY INDEX
Manpower Status

Piece
Regular PT -
Staff Rated
worker Worker
Sales Assistant weaver
Manager – Safai
/ Preparatory Weaver - 3
regular (1) karamchari - 1
worker -1

Clerk – Regular Preparatory Warper cum

(1) worker -1 weaver-1

Peon – regular
(1) Staff & worker on Secondment = 11
1. If production needs to execute, we need technical support
2. Else Ideal wages contribute Rs. 1.5 Lakhs per month, which creates loss.
 Manpower Index
Staff Position Date of Work & alternative
retirement
Lokesh Kumar, Manager 2042 Manages factory work and do marketing & sales initiation across state. Should
D.Tech, B.tech, MBA used for other assignments too.
Smt. Shashi Bala, Clerk 2035 Assist in accounts, Writing books & assist in office work
10+2
Smt. Asha Devi Peon 2025 Office work only. Should be utilized effectively

Regular workers
Smt. Kanta Worker 2021 Preparatory section worker. May be use alternatively in other places too

Smt. Devi Rani Worker 2029 Preparatory section worker & Sales assistant at Showroom .

Piece rate Workers / Weavers

Sh. Ram lal PR weaver 2018 Utilized as weaver if activity pertain else as chowkidar

Sh. Lekh raj PR weaver 202`1 May be utilized in other unit if required as ideal here

Sh. Ramesh Chand Warper 2022 His work pertain if looms working else ideal

Sh. Rajinder Kumar PR weaver 2029 May be utilized in other unit if required as ideal here

1 PT Safai Karamchari working since 2003 at factory

Machinery Index

 5 power looms – 2 no’s - 1990s make & 3 no’s - 2000’s make through aid of CSB
 1 Pirn winding machine – 1990’s make
 2 twisting machines – 1980’s make
 1 re-winding machine – 1980’s Make
 1 sectional warping machine – 1990’s modified assembled
 1 doubling machine – Modified assembled
 1 heating chambers – assembled – 1990’s
 1 winding machine – 1980’s make
 1 showroom – Southern style of Silk Selling
HURDLES & THEIR WAY OUTS
 Hurdles & way outs
1. Marketing Concern: Due to lack of front end and back end integration, Low exposure of national markets,
technological unawareness, not in main stream of business as wool & “LACK of Marketing” process is biggest reason
of this factory failure.
1. Silk fabric: We are producing quality of silk fabric and only problem is that we don’t have proper selling venues and marketing
support. If we got selling space at Shimla, Manali , Dharmshala ,Chandigarh and Delhi with proper marketing support or gelling with
Handloom & Handicraft, we can make our fabric to available sell in market with proper profits.
2. Lack of Brand Building :Proper marketing & branding set-up need to opt here with 360 degree of approach
3. B2B approach : We don’t able to set any b2b sales channel like Civil supply, police or other govt. depts. Due to this even we cant
link with privates as costing concern here thus our price exceed than market.
4. Social marketing is big scope area and thus our team will focus and work to sell garments / end products on same with proper
brand awareness.

2. Skill development : New & unexplored area

1. Integrated with National schemes of Skill development, Make In India, Ministry to Minorities and CSB will help to make this as best
set-up in state with profit.
2. We can have 1 month – 3 month special source in weaving of Silk or wool at Campus as we have train staff here. This is also for
Traditional weaver to develop their skills and new designs in fabric as well as for start –up and youth from ITI’s. Youngster from ITI
having these courses will offered priority in employment through our exchanges in Private textile sector in state as well as
government sectors in Handloom & handicrafts, Khadi , Wool fed, Himbunkars and even Jail training operations too. Based upon
response this course can enhance up-to 6 months also. NIFT as well as JNEC- Sundernagar textile Stream help can be in-
corporate in same.

3. Team of marketing will participate and exhibit in all state, nation fairs with help of government
on FOC bases initially and when it will self sustain, then pay charges.
4. Technological & manpower upliftment is biggest need of hour to revive this unit as all are on absolute now.
 Few Initiatives & way outs for create brand awareness
• Started promotion and selling through social networking. With span of past 2 years engage more and
more customers. https://www.facebook.com/nurpursilkmill/
• Aggressive sales campaign at State fairs and festivals through participation but cost to participate is
biggest hurdle as to create sales we need to first educate and then convert sales. Big fair like shivratri,
dusherra, minjar and lavi with summer & winter festival creates brand awareness & sales.
• 2013 -14, government gifting helped us a lot, while after that we are not getting support. That
segment will be of great potential.
• Linkages with big designers & Big business houses. We tried to link with big business houses like
Aditya Birla group & designers. But costing and delivery lines become hurdles.
• maximum staff is un educated and above 50. for marketing dynamic sales staff is required thus used
interns route for brand promotion. Weavers doesn’t want to adopt for change.
• Try to introduce new styles and segments, but market reach at Nurpur limited to Army customers
where outside shops from local market spoil the truff.
• Glamour and promotions through high segment of fashion helps to create some awareness through
International winter carnival 2015
 Activities Charter
Open Air promotion
International Exhibition
Winter carnival

Social media

Staff welfare Product diversification with NIFT

THANKS