KVIC to effectively market Khadi and village industry products through PPP mode

Mumbai, Feb 18 (KNN) In order to make Khadi industry more productive and competitive, under the Khadi Reform and Development Programme (KRDP) and develop a market for village industry products, KVIC will set up a Marketing Organization (MO) under Public Private Partnership Model.

The Khadi and Village Industries Commission (KVIC), a statutory body attached to the MSME Ministry is implementing the Khadi Reform and Development Programme (KRDP) in association with Asian Development Bank.

“In a marketing perspective, the Khadi sector is still placed at a nascent stage in the maturity curve and offers a significant opportunity for revitalizing the sector.

“The sector requires a paradigm shift from its current supply side focus to demand side focus. One of the focus areas under the KRDP program is to set up a MO along with KVIC under a PPP mode to fully realize the untapped potential of sales and marketing of the KVI sector,” said a KRDP notification.

As part of KRDP, KVIC will set up a MO for bringing effective marketing of Khadi and village industry products.

“The MO is envisaged for a radical re-positioning of Khadi Textiles and Village Industry products and creating a demand pull from both domestic as well as the international markets. The MO would be formed under a public-private partnership mode with a majority stake holding by the private sector partner.”

The concept of the programme is to set up MO as a Joint Venture Company between KVIC and a selected private partner.  With this view, KRDP seeks bids from private marketing organizations to form a joint venture.

The MO would be incorporated with an initial issued and paid up equity of Rs20 crore.

Both KVIC and the strategic partner will contribute as per their shareholding of 49 per cent and 51 per cent respectively.

KVIC would also lease out its own Departmental Sales Outlets (DSOs) to the MO. Currently KVIC also operates a number of DSOs. MO would establish and operate 20 new sales outlets which are to be opened at strategic locations in a phased manner in the next 3 years.

The MO would operate in the business of KVI products. It will source its stock of Khadi from institutions / units having Khadi Mark and Village Industry products from institutions or entrepreneurs recognised by KVIC and State KVIBs.

The marketing firm would also focus on potential markets for exports and may consider various channels of marketing including shop in shop, Business to Business, Business to Customer, online web medium electronic and other innovative marketing channels.

The MO would monitor changing consumer preferences and would give feedback/product and designs inputs to the supplying units from time to time.

The focus will also be given on facilitating “skill enhancement of the artisans and workers in tune with on the ongoing / emerging market trends and designs.”

MO would assist in branding, advertisement and overall promotion of Khadi Mark, it added.

“With an objective to create a distinct identity of Khadi, KRDP envisages development of a Khadi Mark which would guarantee the genuineness and quality of Khadi such as hand spun and hand woven nature of Khadi cloth and use of natural fibre (i.e. cotton, wool and silk) in Khadi,” KRDP said.

 

 

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