Presented by, Palash Saikia Pooja Verma Ramasubramania Raja Satheesh Kumar Varun Rakesh

CLUSTER TIMELINE OF ACTIVITIES

DATE 17.12.2011 19.12.2011 PLACE OF VISIT Murugan Co-op Silk Society Murugan Co-op Silk Society Processing Area ACTIVITY First day Reporting & Registration Learnt about the Society Business Structure Learnt about the Silk Processing

20.12.2011 21.12.2011

Murugan Co-op Society Understood the Sales & Store Marketing part of the society Murugan Co-op Society Found problems faced by the store and Recommended suggestions for Improvisation

22.12.2011

INTRODUCTION

Year of establishment 1957 Members at the Initial Stage 12 members Salary type Fixed Salary by Society Management President Election Elected by the Core Committee group Members Initial Share Price Rs.5 per share ( Buy 10 Share to be a Member of the Society ) Current Share Price Rs. 5 per share ( Buy 1000 Shares to be a Member of the Society ) Dividend 14% Society controlled under Deputy Director of Silk Societies Society Turnover 11crores Loan Rs. 6, 55, 00,000 Interest Rate 12.5% Subsidy Levied 4% Additional Money Borrowed from Central Bank No. of Branches in Tamilnadu 26 Registered looms - 2550 Looms actively in current production - 850

WAGE STRUCTURE & MEMBER BENEFITS

Fixed wage per saree Rs. 100 TIFT Fund 10% of the fixed wage Silk Scheme 8% of the Fixed Wage Central Government subsidy 4% of the fixed wage TN Government Savings & Securities fund Interest 6.5% of the Fixed wage Casual Death Rs. 60000 + Rs.50000 under spot death Members under any difficulties Rs.1, 50,000 After Family Member death Family will receive Rs.1000 / month

TECHNICAL DETAILS OF THE SAREE

JARI CONTENT 0.67 % - Gold 57 % - Silver 1 Hank 5000 Ends for Warp 52 Width will have 2500 Pairs (5000 Ends) Approx 1 kg of Jari approximately costs Rs. 2500 /DIFFERENT TYPES OF SILK SAREES 36 x 35 Ordinary Saree 36 x 42 Long Saree 38 x 42 / 41 x 35 / 33 x 35 Designer Saree 33 x 35 Blouses Length of Normal Saree 5.50 Meters Length Saree with Blouse 6.20 Meters

PROCESS FLOW PICTURES

SILK YARN

YARN GROUPING

YARN TYING

DYE MEASUREMENT

STEAM CHAMBER

DEGUMMING

RINSING

DRYING

REELING

WEAVING

ZARI INSERTION

JACQUARD CARD PUNCHING

SWOT ANALYSIS

STRENGTH A well established Society have 55 long years of Experience in Silk Sarees field incorporated with a large no of Member & Shareholder base A huge Inflow of Investment as well Subsidies from the Shareholders & State Government of Tamilnadu A large pool of Artisans are still active members of the society A monthly sales of Rs. 7 Crores add up a strength to the company Received a large No. of Awards & Accolades from Government for consistent performance in offering High Quality Silk products The member base of the society still remains at 2550 The working environment has been improvised by the softwares implemented specially for the Designing, Sales & Marketing departments Umpteen No. of designs in Silk Sarees

WEAKNESS Usage of conventional Rearing, Reeling, Throwing & dyeing technologies were Time consuming, Require more Human resource requirement They are witnessing acute shortage of Skilled Weavers has shooting up due to Wage competency with other Industries Poor Advertising skills to promote the society due to in sufficient funds from the government side OPPORTUNITIES State government order on waiving Weavers Loans Proper utilization of fund towards Improvising & Implementing state of art manufacturing technologies There is a huge potential for organic materials and Traditional type silk sarees in other countries THREATS Private silk saree shops (Eg: Prakash Silks for Murugan co-op Society) are the major threats for the co-op societies. Low and middle level customers are looking for lower price range that can be achieved by altering the standards of silk saree making done by private shops Intense advertising and marketing campaign from the private shops as well the large no human resource for a single store

KEY PERFORMANCE INDICATORS

S.NO 1 2 3 4 5 6 7 8 9 PERFORMANCE INDICATORS NO. OF ACTIVE MEMBERS SHARE VALUE ISSUED (RS.) TURNOVER (Rs) TOTAL SALES VALUE GROSS PROFIT NET PROFIT EXPENDITURE TOWARDS WAGES (Rs) BONUS ISSUED FROM PROFIT (Rs) BONUS PERCENTAGE % 2006 2599 15015150 79387678 90687678 10469725 8367969 22251519 4183281 18.80% SOCIETY GROWTH STRUCTURE 2007 2008 2009 2588 2578 2564 14891260 14686700 14435100 80723319 110952312 14701117 5759278 19697192 2875790 14.60% 72383914 113979870 15558679 7474904 18753243 3731845 19.90% 80065556 117269530 19606497 12097610 19322960 6048086 31.30% 2010 2555 14280475 82303478 104453539 15463547 7153001 18333914 3575113 19.50%

INFERENCE A less No. of Active Members have gone out because since a Big time growth in Industrial area of Kanchipuram A government subsidy scheme have helped some extent to protect members going out the society

INFERENCE There is a decrease in Value of the shares issued due to the

INFERENCE Due to poor performance in sales because of unanticipated market dumpness the Turnover has come down

INFERENCE A reasonable mark has been registered in Net Profit Levels since last year have shown peak in profit levels due to rush in Tax Auditing

INFERENCE A decrease in Expenditure because of a part of senior employees have surrendered their membership

PROBLEMS
Slow adaptability to innovative approaches in

promoting handloom products. Mass shift in workforce from handloom weaving to other tertiary sector activities. Number of skilled weavers coming down Poor Advertising skills to promote the society due to in sufficient funds from the government side

SUGGESTIONS / RECOMMENDATIONS
To Improvise Marketing and promotions Promotion / Advertising Visual Aspects Labelling Product Designing Selling Skills Customer Relationship (Store & Exhibitions) Trade show and Exhibitions

CONCLUSION

The strength of Kanchipuram saree is its strength, vibrant colors etc., It is one of the inimitable arts of India and its legitimacy should be defended Since the Market demand and artifact changing the tradition remains intact it is vital that authorities start preparing for confronts and keep this industry from fading The future of the silk industry is not clear The industry, has to diversify and move to valueadded products, particularly as the use of silk sari is falling

SPECIAL THANKS TO
Mr. Munusamy, general Manager, Murugan

Co-op Silk Society, Kanchipuram Special officer, Kanchipuram Silk Society Development Board, Kanchipuram