Pochampally Handloom Park
Pochampally Handloom Park is an ITP developed to preserve, improve and market the traditionally rich, high quality and valuable products produced by this natural handloom-weaving cluster, which is one of India’s most popular traditional silk weaving centres.
The park, which was approved by the Ministry of Textiles in 2006 and became operational towards the end of 2008, was created to address major constraints faced by the Pochampally handloom producers, including:
- Largely disorganized, dispersed and decentralized activities;
- Non-conformity to quality standards, a lack of branding of handloom products and a lack of promotional initiatives;
- A traditional mode of production with low technology and a conventional product range;
- Low productivity;
- Inadequate working capital;
- Weak marketing links and untapped foreign markets, resulting in stagnation of production and sales;
- Competition from the power-loom and mill sector.
Addressing these constraints was expected to unlock the production potential and help producers move up the value chain.
Pochampally textiles are woven by using a tie-dye technique, popularly known as ‘Ikat’. Pochampally textiles are one of the first handloom weaving products to have received a Geographical Indication Certificate.
Pochampally Handloom Park has six unified common clusters that combine several activities, including handloom weaving including yarn processing, dyeing and preparation. Located 60 kilometres from Hyderabad, the capital of the state of Andhra Pradesh, the park covers 23 acres. The park has been equipped to provide strong backward and forward linkages for planned and sustained development that will provide employment to the weavers in the region. The park is expected to provide additional employment opportunities and venture into diversified products in domestic and international markets. The total project cost of Pochampally Handloom Park was estimated at INR 340 million. The investment in the park was estimated at nearly INR 476 million, with annual turnover of around INR 350 million.
Approved by the Ministry of Textiles in 2006, the Pochampally Handloom Park was implemented through an SPV, Pochampally Handloom Park Limited (PHPL). The Ministry of Textiles appointed Infrastructure Leasing & Financial Services, one of India’s leading infrastructure development and finance companies, as the project management consultant to oversee the execution of the Pochampally Handloom Park. The progress and the execution of the project was the responsibility of PHPL’s Board of Directors.
In addition to the master weavers who are both promoters and directors of the project, PHPL’s Board of Directors includes nominee directors from the Ministry of Textiles, Government of India, New Delhi; the Department of Handlooms & Textiles, Government of Andhra Pradesh; and Infrastructure Leasing & Financial Services, Mumbai.
More profits for producers
The principal objective of this project is to ensure that modern infrastructure improves the skills of the handloom weavers in Pochampally and enables them to produce trendy, quality products at reasonable prices. Improving product quality is key to increasing exports, thus making the producers more economically viable.
The state-of-the-art Pochampally Handloom Park was designed to facilitate production of high-end products meeting international quality standards that can sustainably penetrate international markets. To meet the park’s objectives, the producers must do several things, including:
- Flexibly diversify products and continuously innovate towards custom-made designs for foreign markets, as well as produce on time and in volume;
- Upgrade technology to develop low-cost and efficient handlooms;
- Obtain maximum cost-benefit ratios through effective operations and management systems;
- Strengthen all aspects of the business, including market information, raw material supply, design, merchandizing, market development, production, inventory management and the entire supply chain.
The park’s promoters adopted a participatory business model making about 5,000 handloom weavers stakeholders through allotment of equity shares. Including the handloom weavers as stakeholders was considered important for creating new job opportunities. As the weavers participated in decision-making, they created systems for regular training and skill development. New skills enabled the weavers to sustain and strengthen their traditional knowledge and skills. New skills also improved the employability of the weaver-artisans.
Strategies for success
Pochampally Handloom Park adopted a three-stage strategy for job creation and economic growth.
This model seeks to provide the handloom weavers with sustainable livelihoods. In the first stage, the weavers are given the necessary training. Once appropriately trained, the weavers are employed in the park. Finally, the weavers receive an ownership interest in the SPV.
The SPV contracted with Infrastructure Leasing & Financial Services to provide domestic and international marketing support. The SPV is also working to modernize the weaving equipment and to market the products in Indian and export markets through participating in trade fairs in India and abroad. To increase the visibility of products, the SPV launched a new brand – ‘Ikat Art’.
Pochampally Handloom Park – accomplishments
Pochampally Handloom Park is well on its way as a model for pro-poor export-led growth. The public-private sector collaboration has been fruitful.
Modernized production. Thanks to the public-private infrastructure investment model, the park has helped businesses improve production by mechanizing pre-weaving, upgrading weaving technology and modernizing dyeing techniques and handlooms.
Pro-poor training programmes in surrounding communities. Poor communities in villages surrounding the park have upgraded their skills through training. Women have been a focus of the training programmes. Public awareness workshops have also been held to disseminate the park concept and publicize the need for upgraded skills. This has led to a growth in enrolment by artisans.
Stronger marketing. By grouping the efforts of firms for critical mass, stronger marketing has been possible. Vendors’ meetings have been held at the National Handloom Development Corporation and the Karnataka Silk Marketing Board. These have led to:
- A contract with one of Asia’s leading designers to establish products in export markets;
- Participation in international trade fairs in Mumbai and Frankfurt, Germany;
- Launch of the ‘Ikat Art’ brand;
- Contracts with Reliance, Shoppers Stop and other chain stores in most of the major cities in India;
- An agreement with Infrastructure Leasing & Financial Services for marketing support in domestic and international markets.