WP242 - Centre For Development Studies
Transcription
WP242 - Centre For Development Studies
H R N T E X : 6n Economic 4ppraisal Hridut Eapen Centre f o r Developrwnt Studies Thiruuananfhapurau Sept e9ber. 2991. Most ~overnments in Yhird countries have dorld promoted cciopsrati ves i n th+? ?t-adit iunal sector a with view e to disecanomiesi ovarcoming -ihe ctf o+ activa3y the economy srna1,l size. ~ h a r a c t a r i s e da-;.J ' ths9e s i e c t ~ r sA!-@ by numerous small producers at of' t r a d e r s t h e mercy cwparative form b a t h ir.1 wpears orgaisi sat i o n of patentiel S G ~ increased products on by and manager1 a: prabl ems number of sludaes have and output markets;, t h e input. a+ horizontal to hold a tremendous overcoming t h e technical integration. However a s h a m t h a t c o n t r a r y t o expectations. the performance! of mo3t e 0 ~ 3 ~ e rve5 ~ t ii n particular those initiated by the state ha3 Seer: rather disntal' to be tt?r tendency ,kowarclss bui-eaucratlc skrurture w i t h . R major causal f a c t o r appears impasition a state type p o s s i b l e political interference, mast such caoperativea d i s t a r ~ r i n gthem .from aficcts t h e i r of t h e i r members, which terms of motavation f u n r t i i a n i n g both i n or! as a l v c increased nvsrhead cu.sts. The: present study is a l s o ah enquiry i n t o the +unctitrr~lrii:o i a - statc'sponsore6 cooperative s o c i e t y primarily on arl scbnornf c analysis, i t Cinding. for An and though cur does corrabora.ke thc obviaus p a l i c y i m p l i c a t i o n rsstr'ucturing cooperatives to focus i z t h e n would- b e improve 5Lcl.e {.is& o e w G thei :- woi..?ing. t h i s c o n t e x t the collectibn a+ essays i n DuW. and B. S. Baviskar (ad) %D!a-.- -St~ares~ ~;Q.wR.@c*L~ i-~~~i~r!~d~.f3~r~eX4.evel~~!m~n.t~, DUP De I. h i , 1 Ci 88. See i n kttwood si nca tiowev2r str.uctur.es th i:5 waul d 6 n\;.;1 the broxjening and have n o t orqanisati one, we at? r ndepth sf,~vi'vof e!< isting ; : ': .i -2 J 3?.tsempt e d t k e 1 . t , ~ t . + + : - *:I.! L. apex :key, bcit merely G: .. , indicated i n whier'~ i t the ways .i-r!t- ,:'clnctior~ingof irrcpi1.1q95 The eral la S t a t e Handlourn W&avers' Caunursti\..c: 3ociety Ltd. (hereaqter H a n t e x ) was 5et up b y the % v e : - n e i ? i o!: tlcr ala in 1961 as body w i t ? \ the an apes o ~ j e c . t . i v eof i n d u s t r y i n t h e s t a t e a n aoound continuing losses 9ar- t h e past organislrrg the handloom commercial drjradr rtr so despite considerable a n d i ts i n a b i 1 i t y f inanci b l support g ~ v e n b y t h s Government d i scharye i t5 cause far I. The pi-abIi*m to puskt Lhrr,.t.\gh i . c l l y in the .Failure of Hantex rii at. iw> i !.+?t- b353 t i he.r?dlcc;~;ic l o t h sii+f i c i e n t l y . ef-Fortc. !-ti do so, 5 . :; baiifr7t. 2 . : ~ mar'C:et~nqsL~-ucLuT'u,, !*!A produce t h e dc-sirec 5 . , . . ( . r i ~ c vi ~e ~>ale+ ~~i ii:!~!~'!.sn . 2 of cloth. 5 1-1 . n<)yt-a%.ai.~s:jta cotnmi t ker': pr Ocu~-ei!tat72; LGA pracuretncnt as iiccun~ulatifiy 1 c l r ' ~ r i y abpsa:' m,iri::ef,xrtq L ? 1os;=d~. i to be: straf:i-\q? L! iL.... :: w a y I : . some rii' rw.Jucinq the ti3 up i tr; The .. consequent st:ork ei:tent by a socially to a cut back in casts an the 4 ace of i n w i t a b l y lad (31-1 policy, did ccrntrary by pushing sales side :;a> the absence i.r.ik5.j Its x ? . s y c4er.c err b u i 1 dirtq up an elaborate . ~ - ~ v e r k c a dc o s t s , ~ . 3 i ! t ~ ~ r : . i ! . L t i i .kk~-.tgrab1 ~ f i . p il irig ta sssi sti ng -primary weavers iiocie'kicr s a t i s i : . e c t o r i i y creates serious coopet-ative CQriCerl .;ur~c.kiar! of priatary ~ & w e v c r ,Its basis. of a t h e conc,tra~nts well-thaught uut reuri enti ny the production p a t tc)r.t-i rrpp%ers .to be: (a> i t s a m dynamics growttr r3.F an apex . bw-eeucl-ati c.. .,adna mr&mis&tion acquf r ing a a+ s ~ t . ~ +ve t i structurej and tb) tha'grawing debt. bkrdazn, .tzrtdcug.i:ak~i-ito a f arqu e x t a n t by The 'st,udy is avgnniswd irs ', psi-tdkul~r tire .. . of dues, nu&payrnen'. .. . . i r i iv2h:i. ... &nd trace . the armwit6 in ~ t y i~narr..a q ~ a w t h rcidtran,'tu itu: priincar.9 objscat.vea. viz, . .: 1, we fn Section ' t h ~ couparntiva sector g r o w t h of cbrnerqjentre! a+ Hentex .five:sections. . . organl RQ t h e handlaurn ta .. .. b a s i s and to markat ~r. s!a soiind cacpmlercial .industPy in the ' ~ . t : i s I f t~e~haridlaorn Q a b i iis pr.adciced b y is'c~xaminod .. 'in Set4iar1'2, liqitaticns. perf craaore ;;a% to.I?B2.-E3'7 .... . primary. weaveris ' societic s , . -. . I n .Sse*:bon 3, w e study Tks, f x n ~ o ca1 r period 1978-79 t:tte ~f in same dkpth the campany been analysed f er ' i n Sectiern ' 4 the to . . cvsluate its recc~f-d i:rw . m a p t c Itnk ' < . +t e:~mfi>a~'~,tal p e r ~ a p e c t i v e . An attempt is skpenditure cri t h e gr;jwiny 1~ljyt3iurratic .;F% ~ t p , Firtii'!:ly in .ssctinn nppk~iruelwe cSissu:sa G a r .:', . f t fiqy bs .:i<<iidi tl are f :'cc>..d -1;:. ~ t a . b l i r h n n to t 5 in t h e light of t h i s f.~c>kicysuggestions. khs outset Chat t h i 5 Lnal ysis dsss - not;.'@ur.dort t a be ii~%tibdY its b+ tt'\+thwncll.ocrm industry. In . 30 f ~ i -as . . to Next ~ O i r , h a n d l ~ o r n s i~ the second iiscoor-Ira:.!.t most traditional industry in k e r a l a , employing a little avnc wprkars directly. (1987-88) the . . -.ab.;i L? eC Hnwavkr, t h e l a t e s t all-India k(andii.oi+ ':~.ri.!sr!s 2 1 indicates asharp decline i n employment a:id:.ci!majs.k Ln (. industry. Mhile.employment h a s :. fallen from about laki? :'1 w ~ r k c r sin 1976(~) to aboutbB,000 in 1987-88, the o~trnbcr at looms shows a reduction Estimates of . $ r a m 90,03(i3 laoms in ' employment ~ n dc a p i t a l ,54,2GG~lcitms. 1976 to traditional , equi pmant i rs household industries are ai wwys subject to large v w r i a . k i ail& aver and between sources, because of time i n d u s t r i e3. t h e nature of w x : : rn such Hawsvsr, t h a t an. exadus of male wark+:f-:-!; has eccurred in t h i s industry,rcf I e c t s d i n t n c sharu incr-ease ?.il'r/..~ W ; J Y ket. ratio is not improbable giver7 the Face L l 1 . 3 ~a v w weaver hausehold have remained r el atr vel :r. l o w . I% as sharp @%is s u ~ g e ~ t e by d ' the Handlaams., Kerala 2 had of u Ibtt~tzt!er Cheextent' a Survey o!. .t51e P r i m a r y urtdertaken by tk;e estimated kdY'Ril7Q.X 9Sgur-es requirt.r+~tv.that.-. pro bin^ sincce a 4kw .years earlier, in 1905-84, Wemvsrs ' Caoparativa Societies age. PBX . about Df vec.kwate of 64,0@0 looms in the C=,e.rl!rl!s_~a.,~3-Handl~~~~ - -i.r?_ .--. 2ndi~,..2-?.!3Z~QB~ D ~ v aopment l Camrnissiancv S o r Handlooms, Government oC I n d i a . Minjetry f Textiles, cmopcrat,ive ' ~ e c t o ralone, and 95,80B total l hlfhough t h e historically i t tcnde?d ta . almost throu~hout t h e 3::a:z. indi!stry e x i s t s has t4 1 cancentrate Cannanrrs in 3i:;li - These . .t w o d i s t r i c t s continue to dominate?'t h e i i i a d s ' ~ : - * ~ ~ Trivandrum. . Crnnanore wi$h a share : ( i n 1983-84). =partent number ,of looms . and . of 40 percent of the Ioms anci . . . Hweverc, Trivandrum weavers in the Cr-5. . . ' z : c f i l has :-ha W:I, .;.ac-$seL c o a p w a t i v e secri-;r, rr.nic5.r hirtocirally struck strong& roots i n the e r s t w h i le prince: ystatc of Travancare. The cooperati vwcorgani sat i o n of the handlooinirrdustry i.n t h e country . had barem f e v o u v ~ from years early tu pl-otoct .the . urrorgani~edweaver markets. EarJ y internittent. involvernant -from middl emen bath attempts A on1y irc ' cacperati v i saki ~n eustained'ef-kart was made particular f ram at in the with very cloth yarn artd , h u w ~ v n ~ were state 1c2:ive t h e pbst-.Ir,dependn.nce per: ad, the mid-30's when t h e t~i?.ndluurni r~Jue"cry, conctituent o.f the decentral i s s d ;sector o.F thcl te;.Lii 1 5 in (as.a industry) w e assigned a major r o l e in plnr.tled nzltianai d ~ v s l c p n ~ n t. .Since then, t h e cooperative r ' s o r g a n i ~ a t l o nof major supportive p o l icy the industry has been the of t h e W~vernrnent af I n d i a through which have been channel isedat the s t a t e I eve1 planned ef f ~rt;(s . Notonly have t h e State govsrnments participated d i r e c t l y by contributing . . t o the share c a p i t a l af c~opsr'ativcsandproviding other .Financial 4 . R~.P~c%,.cI.~~ - ,'cae., . .$H~'v-eyAn,,, ~ @ .. i. . P~i-rna~~Adb.tJ.c~~@c~: Handlnoma, V i k c s Bhsvhn, Kerala, 1983-84 Director of assistance through loans and cash credit arrangements, they also intervened i n the yarn and deal f o r the weavers. These have better product markets toensure a e f f o r t s , were between s t a t e s and diifering intensity success. However, despite the generally have implemented m e t with with varied low r a t e o+ success o+ " o f f i c i a l M cooperatives, governments continua t o advocate them, e s ~ e c i a lyl for traditional household industries, because of their tremandaus p o t e n t i a l for increased production. In Kerala too, attempts at organising handloom weavers i n Travancore p r i m a r y cooperatives 3 0 * s (S ) . Hawaver i n t h e course of t i m e most of Rs early as cooperative society was set up, w i e r assist primary cooper-atives marketing t h e i r Handlaom outpbt. Weavers Cantral Thkc theme p r i m a r y in 1947 thare+ore, a not central a larger financial base t o Travancore Sfee Cooperative Society, societies were set ather two e r ~ j t w h i i eregionsaf K e r a l a S t a t e in Travancore region the was the Subsequent1 y , c e n t r a l c o o p e r a t i v e .----a- the an adequate capital base, or l a c k e d t h e necessary mcna~erial enpertisc. the in Perhaps they werr societies f a i l e d to f u n c t i o n p r a f itably. orqanised w i t h are recorded State into -- Moolan Trivnndrum. up i n the Cochin and Malabar - -...---..- ..-----..... See V. R a j agogal an, ? h g . _ C 4 a n d l ~ d m ~ .Ad ~ . . ~ ~ h ~ c L ! L - . % e r a l a -A_. - % t ! W f .f , . P . r R d Y ~ a ~ & ! J a r ~ . Str_uc~~~rfcs-~Centc-e +or Development: Studa M, 1986, M. P h l l Thesi5. The Cachin Central CocmeraCive Handl aomweavers ' Soci ety and the Society, C a l icut (7 1 . b r a 1 5 Handlaom Weavers However, even t h e s e prrblema , ~richur' regional societies ran i n t o financial - bythe l a t e fifties, t h e Travancore Sree M o o l ~ f nS o c i e t y was seeking a t emporaryaccolr~mudati on from the governmenttc;. anabl e i t t a continue its activities(B). Since t h i s was aractnd t h e time rf unisication of t h e thrern r . e g i o n s i n t u the State .=rf Eer-ala, the Gmvernmcnt took the d e c i s i o n to merge the t h r e e s o c i e t i e s i n t o an apex arqanisntion c o v e r i n g t h e whale state. t h e Kcrala State Wavt.;ion) CS S p e r i a1 Ei l l called Handloom Weavers ' Ccioperative Soci e % y (Speci a1 B i l l 1960, was passed by the legislature in Mwrizt) 1960 rnd Hrtntex came into baifig i n Jc!l y 1961, The membership oF Hanteic is open tc in) primary h a n d l ~ o m wravarii coaperativs soci s t i as Spinning mills^ and ( c ) Bovernmant of )r:arala (as per the Bye-laws ' ' ' (hersuf.t s r F'lrlS) 8 (b) Cooper-at$,ve t h e centrs.1 cooperative society i n Cochin included handi cr8.Ft 6 t)s~t:i cjes hand1ooms and was called the Cochin Cottage Industrial Narketirrg Society. Itwas later bj f ~ i r ~ c a t e idn t o two. Earlier In H a l a b a r the COODt ex. primaries were originally attached to see ~ _ r _ ~ . e e . &-+ d ~ nhe ~ -...s e.F Q ~ . C ~ . - ~ ~ ~ - ~ - ~ ! . C ~ - - . O ~ . Q ~ - I ~ ! O L ~ ~ ~ ~ ~ p : . , p . r ? ~ . ~ . H ~ n d . ~ ~ ~qeserve o . [ ! ? . - ERank ~ ~ n ~of~ rI.n?d.i ~a,e ~ Bombay 1961. amended upto 31.12.883.. WS.ttt l a t t e r accoun-kinq + o r aver 30 the rt percent of t h e share capital when Hantex i s , what was set up, in cooperative literature, wuttlcl be tet-mad an ' o f f i c i a l ' or s t a t e spansored cooperative. ' local ' d l d attempt quvsrnmerrt to f osteir initiativeby p e v m l t t i n g PWS to own4[E per-cenL a ~ fthe .share c a p i t a l and p r i m e capital The importance had been given ta from member- societies, AS A way mobilising share uS r a i s i n g resources t o achieve its o b j c c t i v e a ( 9 ) H u w ~ v e r , over t h e years, ,the p a t t e r n of cwnership changed arastiral l y i n f avaur cf theynvernment which now owns &almost C?S percent w 9 the share c a p i t a l theFWB actaunt for on its a meagre 4percent. awn, H ~ n t e xhas t e n d e d ta :See Table 1) , while, Hence rather than standinq depend heavily on governmamt s u p p o r t aver t i m e , For a11 then, p r a c t i c a l cturpmetti H a n t ~ sis a government organisati en, though thecomposi tticr! aC the Board af Directors does allow it relati veaukanony, However, s r r u c i a l functionary of the organisation .- managiqg dlrszkot' - xca government nominee. Ofthe 16 members, 221re r a p r ~ ? ' ; ~ n t a t i v of~ stheprimacy cooperatives *ram the dif f er-ent disjti-i ct5 ancl +uur are government: numi nees,af which anais the managing director-. a n t t h s r i s Diractuv of Handlaorns, and t h e remaining t!~oar-ar - e ~ r c s s n t e t i v e sa+ pal 3 t i c a l p a r t i e s , i m p o r t a n t to notethat t h ~ r aare at Z%ast thrcebuf It of the organisation which can i m p i n q e an busi ness/cammerci al ent i t y r .--....-.--..---. -. ,.-.....,.-.--.-... See t h e Society's Dye-Laws. 8 - It: is i n 4eatures its functioning as a (a) Beingan o f f i c i a l coapcrrative, itsadmit~Sstra?rivcstrurture and fctnstioi'lir?g clasel y of medt qsvsrnment arganisat.ion which rt?aem~:e t h a t ntakes Aecision a+ a bureaucratic making ccrmbersome involving elaborate prucedc\u?5 iwhi 1% raising eritabl t shmcnt casts; Ib) Atthe %ame t i n ~ eyi ven t h a t c o n s i c c o n t r o l can be w i ' e l ded by member socie-2-,ies. non msrket. pressu.-sa ,an be made to beer on procurement/distr i bution am plans based rwrorsentatian on on the Trf vandrctm r e g i o n , GC rlr~:h market Board Iniri~ica?.to t h e a t - g n n i s a t i o n ' s trends; i s heavily which happens La (c) and that given i n favnur weighed have t h e 1 arge2.t G+ number 04 primary weavers c;oc3.et~rc~,suri1 pressures can also have n regional bias. stt-anal) suggests the bdhile our. a n a l y s i s f i r s t , the i n f e r e n t i a t recent whom is the t.vxcforrse an ;b) and :c) indicates t h a t i n years pressures aupeat- tfi have cloth ogerati~nclf procc\red r.atl.tev' operated on what and from that> the total quantum a+ procurement. Since t h e setting dp a+ Hankax, there has c e r t a i n l y been a gruwth uf t h e cooparativs 'handloom s e c t o r , thocrgh coverage hes been subject its extent and to vastly di.F#erirrg estimates. While earlier tigures suggested that almost 37 percent of t h e laamfi had been brcupht undarths e u o p c r ~ : ~ l v ss e t t o r by the l a t e # f f t i e s , the 1976 Census revealed that only23 percent 05 t h e loomswere covered by cooperati vas t r . e I . s t i v e ly :ow a g a i n s t the all-India average a+ percent i n mid seventies!'' about 33 covet-age. were Qf i n t h e c o o p e r a t i v e sectar, suggeslinq c o v e r i n g 60 , oy 1993-B4, the the estimated 93,000 looms t h a t year almost 64,000 the industry had percent 1s 27,000 loornswere isCT7-88 the t h a t over two t h i r d s of been covered bnc) the State gcrvernntent t a r g e t of: of t h e i n d u s t r y b y t h e end af the S i x t h P l a n (59130-85) also acl-tleved. In Howevor j. Almost. 42.3 percent of tl-le looms, that: in Trivandrum and only0 percent in Cannanore. Census eskimatcs t h a t about of the 52 percent weavers were covered b v the cooper&tives. Concomitantly, the number a$ societies has r e p i s t w e d an impressive irtcreasc (See T a b l e 2) tttauah i n the years i m m c d i a t e l Y f a1 lowingthe set k i n g up sf Hzntes ,the grawth was r a t h e r s l u g g i ~ h . f t really accelerated i n t h e e a r l y under gr-avc suspicion, ow ever, etnd A eighties, which in + a c t came numbst- af tihem suspected to be 'bogus'*- numbers alone do n ~ give t a c o r r e c t p i c t u r e of growth of household the coopeflative industry is not sector. like t h a t of Working a+ looms looms in a rarely are laoms di%cai..dsd i 4 nat b e i n g used. number a+ looms indicator U+ the actualiv working is s i z e uf t h e i n d u s t r y . the s i z e more mill - in a vtrY T h e r s f ~ c ethetotal appropriate as an In 1976, almost. 9 percent of t h e looms were idle; in1983-U4 the p r o p o r t i o n was higher at 53 10 S ~ ~ R ~ R Q -? ~ I +fkh-e-. ,- . H i ~-.P~owrdGkg@yh 1- oh t h e i _ P ~ o A ~ . ~ ~ t ~ .Industry, --- - ------ ..-1-92.4Government oC Inda a, Ministryof C a m m a r c @ popu.1a r l y k:nawn as t h e Si varaman Commi t t e e . percent and 5 Imms out OC percent of 64,eQG 1au:n% idleness in if?87-EB i 5 t h a t is 38,000 t i : a lazrtna weve damaged, t ! ~ t .here i ~ active. ' TI>e e s t i m a t e ef t h e 54.,000 laams w e t - e ~ d l ev l z aniy 4 4 , 2 ~ 0loam+ Simi l a r l y mure ti-~an ?ima11 i n s i n e w i t h 10-id@ *f those working I..,?,:! i. 0.1: tile caopcrat i v e rj; 18 percent were working. societies are l ~ c i n s . R 1ii1-qe nuinbet ar.e dormant, end mg~.c1-1 less t~ii*nna14 m a k e a bhile three f o u r t h s - for. t h e wh.ro3.e r,andlaon~sector of t h e 5.35 p r o f it. In r?8J-.84 sacletles in existence were working, t h a t is 4 3 5 I n nurrrbar, Leas t h ~ nh a l f , . w 183 societies mnfy .were runninq xi; a pv of it. u u e under 1iquidati Q ~ I . rcnartcrd to be .dormant!. smcirtier ). CSbo~t: 1Lt percent or. 92 societies societies were !I\liine of- t ha, tactot-y type Et mayalso re~orteS1BC, t . r o r . k i n ~were be ~aintedout that BE. ~roducingcloth but oGt:-le had no And a1 t h o a q b over h a l f thewlxkere in t h e induatrv a r e crslcred b y the cctopera.t$.ve rrlrietics, o n l y near 4 u l l t i me emplo',fme;lt, that is about 50 gel-cent. p e t more than 25t3 day:; j.n a jrr;l,rr; more than h a l f have work, f o r b a r e l y 2a0 days. Hence i t sector in would appear terms of that the growth of the ccr;~ps!--atjlve has 1oclms/saci st i es/ernpl oymsnt quantrtative than r e a l . When w e e x a ~ i n ep r o d u c t i o n t h i s cannot be said w i t h g r e a t confidence. a+ lonq termtrends because of It 15. 04 been 5or.e cloth, evm ddif T:c:,ilttt, 2aik sharp changes in production f i q~\t-e% i n certain years, reflecting t h e probl cnts of rasti ~ o t nqprodrlt-Li'3rt i ---.---- -...--- 'I --- 1983-84 Survey, u p - ~ i t . in the handloom sector (I2 1 . Ontha hole p r o d u c t i o n h a s s t a g n a t e d around 300 1aC:h metres and i n f a c t d n ~ l i n e df n eighties to 254, l a k h metres. early the seventies and (However, an ear 1i er ser i es .from thesame source g i v e s suwewl>at higher estimates of production +or the yeara table;. 1379-80 to 1983-.-ti4whlth is a l s o included in the Sance 1983-84 pradurtion has shown a c o n s i d e r a b l e upward t r e n d reaching a pea,k uf 40Blakh metres in 1988-89, but given the findings eS the 1987-08 Censua i n respect a$ working laoms, i t is likely that these cstifnatta.; are tu same e x t e . r t overstated. However, in r.elzti >.#eterms the raaperative sector must have grown s i n c e p r ~ d ~ i t i ~ in f ? the private sector has declined f a ~ t c r and t h e cotlperativw+ nnw sdcco!~nt +or a little over h a l f the tatel ~ r ~ d u c t i o n .Product i unin value terms has shown a d i s t i n c t upward trend, p a r t l y on acccrunt oS changes in product m i x towards the hiqhorvalusd itarns and p a r t l y .because o.C: rising prices especially s i n c e the late seventies {as w e observe I n t e r ) . %n b r i e f then, t h e p e r + ~ r m a n c eo+ t h e caapsrative sector Mas +av +romenviable and the i n d u s t r y can h a r d l y be s a i d %a have been -----.----.-.-l2 ..-.- .-- Estimates of hand1aom production a r c general l y derived estimates based on assumptions regardir~gno. af looms working teetimated only at! d i . s c r . e t r t i m e inter-vals), quantity af yarn consumed and average d a i l y production. f n the case a+ cooperatives inSormatsan is supposed t o be d i r e c t l y collected from t h e production unita through a quarterly r e t u r n . However a l l d i s t r i c t s d a not regularlycallect data nor is it certain t h a t the direct The estimate beingextremely sensitive to the assumption regarding number o f active looms, qiverr t h e sharp +aZl in ?oomstretwecrt lQE35-84 and 1987-80, i t is pert;inent .to azk on what b a s i s have t h e @st.i nates s i nccp 1783-€34 heen made.? method is a1 ways +ol Lowed. wgeniaed on a sourid commercial Froblems sltch as basis. nm- availability a+ yarn at, reasonabie prices, stocks of unsold clotti leading to cindct- en\playmer.t, ~sudi!c, .& maleworkws, low earnings, yersisk. What is.v a r y d i s t u r b i n g is . .the ~ n f . o r m a t i o nthrown UP by the 1987-8R census act-ordinq~ ta t.rhichtl,e average monthly earnir~gs per cueaver in Ksf-att? is Icss khan Ra.2Q0 per month i t h e fowcsk in I n d i a ) , iompared :oEs. 346 The state of the? L!I Aridhi-a Fradesh, Rs.315 in 'Tamil Nadu - to some reflects r extent the inabi: ityof H a c t ~ ; : -LC Lni,=u vene e3 fectivelyin tho pr~curernentand marketing a+ h a n c i l o ~ mci nth, as su?ply to n!enber si.riciies, also t h e purchase of- yarn This i a revealedby T a t i e 3. for Mast crj+ ' t h e data watiave an prwcurarvunt', sales and stacksir, in value t e r m 5 which.Cails .ka b r i n g out t!>e g ~ n w t h r e c o r daf Hantax in real. terms. Hence using t h e implicit p r i c e series getberated i n Table? 2 ( t o t s 1 value of pt-uductisn d i v i d e d b y the quantity o f c.lutll produced) to drf late 'procurernmt by Hsrrtex i n value terms, w e deri vecl a c ~ i e rs an procurement in i n t e r m t i nq r e s u l t fwward quantity terns. , demo1 i shi ng oy the! Harltex o f f prinaril y due to d&er throws up a very to a lat-gc e x tent theargument put irials that: accumulation of a t s r k s was aver procurement, on the method t~sec: by Hanter: This It also raises severe d a i b t s far evelilating stutks. H o w e v ~ r .!.re discussion ~n t h i s till afterart a n a l y s i s c+ 'its a c t i v i t y i n the yarn m a r k e t . That procurement and s a l e s of y a r n b ~H a r ~ t t ?ha= ~ S Y and large accaunted for a small p r ~ p u r ~ont i of t h e ytrrrr requirements of w a v e r s , bacomi nq almost n e y l igi ble i n r e c e n t y e a r s , is we1 1known. Mhile sixties irt the and . ; e v e ~ - ~ k i c s , s a l e s UT y4rt1 increased siqnif i c a n t l y f r o m about Rs.27 l a k h s i n 2 9 6 A - 6 7 to over Rs. 2 crares b y 1979-80, i n the elghtsers t h e r e nas vary $luctuared between Rs. 2.6 Rs. 86 l s k h s i n 1989-239. annual consulnpti on oC - 2.50 It little progress. craves declining La as low as I t isnot easy to ~ b t a estimates i ~ af t h e yarn b y . t h e ectopzlrati v r hand1oam sactar. Sarneparigdic es.timates r , z v s ? i that z+;was v a i ued at: around Rs.S. 00 crwrm .in L97&; 1Fi crat-es i n 1903.-84 and r e c a n t estimates put i t at Hs.lb crares or 3.75mn kg. s a l e s to Pd3 we .Eind tttat Camparing t h i s broad1ywit.h Hantex' z t p r ~ v i d s dabout a auartcr of t h e i r requirerncntsi i n 1976, w h l r h d s c i i t ~ r dto 2tE p e r c e n t i n 1983-84 and In recent years it was as low as 5 percent. Hawa.,/er, t h i s pear perit=crmar!ce o f against the anomalous yarn si ?:uation can b a summed almost 75 ctrl , ti?e Let us t h e state. t h e ycirrt i be viewed 1 . n the s t a t e , w h i c h !.tank f o p m ) w l r , s v ~ e ? -dii~pt31'1d ~ l a r g e 1y required by which a l : ~ a s ti4 - f ~ v ea r e cooper-ative the on yarn from outside elaborate i t + L t r t h e ~ , There are the state o-F qavernrnent mil 1 s existinq ta tne -statameriek t h a t t h o u g h t h e S t a t e p r a d ~ ~ c e s aevcent csf handloon! sects!- sills i n ii-I Hsnkex k35 50 spinning are govcrnn!ent or quasi spinning mills, +our ape under Kerala State T e x t i l e Carporsti gn, +our w i t h National T e x t i l e Corporation entirely and one with t h e gmvprnment. Jepandsnt an raw cattan from All the! m i l l s are outside the s t s t e . Thes~ .ills produce almost 21 mlr kgof y a r n annually vaf ued at Rs.90-IQJ0 erwes. O f t h i s 26 ~ a r c c n t o r 5 . 5 rnn k g i s yarn in hank form (incidentally much belaw t h e Texti leC~mn!~is(iiioner's5tf p u l s t i a n af 38 percent). The ruoper&t!ve sector as we noted e a r l i e r requires kg o f yarn and about 3.75 mr: i f ws assume a s i m i l a r quantum of consumption b y the p r i v a t a sactbr the t o t a l hank yarn requirement of the state wculd oe kg v a l u e d 7 . 5 rirr aggregate terms t;lerefors, the a t Rs.32 crores. mills are producing only about In 25 percent lass thanwhat i s t-squired f o r t h e entire handloom sector. Nowever of t h e tcrtal RJ. haina produced o n l y 1.37 mn kg or hank varcb 5.8 c r o r e s worth, i5 sold ?.nsidm t h e s t a t e and t h e rest moves out of tho state pv-ima:-i'..ytucheckpasts connectec! withPkharashtrn and the nsighbour-lng state o f Tamil rerouted back t a If;srsic), hank yarn meets Nadu ( a p o r t i o n of which is It implies t h a t i n t e r n a l less than ZO percent o f the prodccction of requirements af t h e weavere and airno5.i: 6 mn k g af varn or over 25 c r o r e s worth of yarn has t o come i n +ram o u t s i d e t aggregate terms, t h e I. Hence w e note t h a t although in praductim of hank yarn by m i l l s within the sthteis o n l y marginally inadequate, thedeficit is mngni+ied sir?ce more then 75 p e r c e n t 09 t h i s hank yarn is movinqaut o t t h e skate. A major reason cited f o r t h e movement of yarn abt o.fthe s t a t e war tha differential r a t e of sales t a x on yarn between Kerala and TamilNadu. While t h e sale tax on yarn w i t h r n Kerala fs 2; percent ----I' Data 09 i n t e r s t a t e movement of goods into and out of Kerala, p r e p ~ r e d b y the! Pureau af Economics and Stat1 sti cs f o r 1975-76 and 1930-81 cunf i r m such' atrade. sales t a x oC 25pertlen.t on sales t a x (that: plus adrlj:kiot?al p e r c e t i t )which adds up to 3.73 percent ,in Tamil Nnd!r 4:hc @.75 t o t a l tax T h i s wrirld make yarn f ram fami 1 Nadu cheaper 2 pet-cent. i 9 only Itr; out o.(: K o r a l a ' bcca~rsc. of: Igwer and induce tr-adsrr; to move y 8 r n demand, thi 4 year 's KEY a1 aBudget ~f t o r repeated rrqu,estc, t h e ( 13 govnrnaent has agreed k a s c n l e r t d i S + e r s n t i a l . r a t e a+ moves out 05 the dirjrussiuits & t h down to 2 percent). Hov)cver, the sales t a x i s not and is state t h e o n l y reason ~ h yyarn n o t cansumed a'? cur wf+ici.als at Hantex, Diir~?cS;oraCc u:rf Handlc)bms, #erala State Textile Corporation (KSTC) and t:l?e S e w visitecl, In within. prirnar.J.~swe leasttht-.ea .important iscasons manti~naclwere: tci) very little production by out- m i l l s r?rFcer.tain high raurite of yarrr l i k e 80.4, 1805, 124)s :,.rid virtually na price un average b e i n g hiqher a+ (c) production of combed yarn; (h) y a m produced indiqcnously; and poorquality of y a r n produced try m ~ , a+ ~ t t h e ' ~ e ~ . ~ mills l i l . with a few exceptions. af production While t h e r z i s a rnimts<:ch b e t w e ~ n t3a p a t t e r n (in c ~ u r ~ t ~b yj l mil 1s ar\d khc ~ a t . t e r l -uf , cansumptian it is; not primarily in terms by the caoperativs sector, af the Alt..t?auqh it is %ruet h i i t plcaductian of very Sine cauntf; af yarrr. cta~rntsabave 80s is r t 2 11 on1 y to the extent: a+ 3 percerrt (and af combed yarn aimact: neglfgxble) while the coaperativcs requirea\#er 7 percent nf such yarn, t h e the majar counts Q$ yarn 409.Totsl prudtrctl.nrc of d e f i c i t i s much consumcd by such yarn larger in respect of t h e handlooms viz. upto is about Lwo-thir-da . uhile its In .hue chwtaga i n produced. respect of 1-10s This count of Similarly t h e r e is a is a 11-28s is being over yarn appaar-s tc, have r e l a t i v e bvcr production although the Hence, There fcurths(''l 1 . and 21-40s;. a market etutslde; which too has match. over t h r e e consumption i s r! market outside. 0.F counts t n e requirement deiirit in O+ 41-60a, 6i-B0s almost counts 21-4Q)s i s much Irrgcrr ,shortape of +,hef irter c o u n t s t e n d s t o get exaqgerated s i n c e (a) i t forms a hiah p r a p s r t i s n of the yarn baing consumed by the socimties i n Trivandrum district, in particular Neyyattinkara and hence a t t r a c t s immediate a t t e n t i o n $ and (b) p r i c e s of these yarns . have general.ly increased st much +aster counts (IS rates than of the lower . Aa rerqards t h e ? r i c e of vat-n pr-oaucecl indigenously being on averagehigher than t h e yarn prorj*~cedinTamil Ncrdu or Meharashtra. some data w i t h the K S T t .:ol?f .md M e produced estimated to t h a t w i t ; > Lha I4 Tamil ~adu(" ). Harave, additian esf t r a n s p a r t it is and other mor9 economical. f o r societies t o purchase the yarn 0r.1closer enqujryi t appears that the pr-oblm comingf rom outside. - A 1 so average p r i c e oq 40s i n k n t ccapsrntita spinning mills i n Kerala are be higher than in still surpriril-,g charges i t is i I-ms this. . -.---- -.. Data un P a t t e r n at Production is from f l ~ ~ & S ~ t ~ - ~ t j , . ~ i BUU-!L-~_~.. Southat-n India M i 11 Owners ' FSssociatian, Cai m b ~ t o r e . This ir. Hnnt e x . revealed by data on yarn p r i c e s supplied by 6 e a R e p w t of the 611 India ~ e d e A t i o no f Cooperative Spinning Mills, (RIFCOSPIN) Bombay, 1984-83. is not so much higher p r i c e s in i s a general which a+ i n d i yenous yarn, r a a l l y acrious AS poor qua1 ity There a r e r;hc.rtccsiny. c e k t a i n ~ t h e rregion specific prub1~;ms. The s o c i e t i e s i n t h e n o r t h i n t e r a c t mc!ch more with the d i r e c t l y and however, the societlesin the sauth are well paying withautdelay. known a p i n n ~ n gr n ~ l l sbuyirtg defaulters; a l s o t h e frtismatch i n counts ss r e l a t i v e l y more serious in t h i s r e g i o n . some depth on We h a t e dwelt i n questian is, why cannot su.ff icient goad qua1 ity of t h e yarn problem s i n c e the : i n d i q a n o ? ~ s mills produce hen\: yartl upto 48s. the productian s t r u c t u ~ ei n the at least By a reavqanisintion at l e a s t some m i l 1s to meet the yarn u p t a 4Gs (without f o r g e t t i n q the need far e n t i r e demand for- rais!. n q a s i s t i n g qua1 i t--y standards) arid g r e a t e r mutual interaction among a1 1 t h e orQanlsations c;onrlec:ted with yarrt production and t h e .Former sgrseing to produce gaod quality yarn of consumption, required counts and the Zatteragr-seing tu make payments promptly, it should not be i i n p a s s i b l e t . ~maks , another but more serious attempt t o P-ect i f v ttii 3 :..noma1V . Prices of dif+arcnt increasing con+i r m s . f a s t in up recent years, Theof f i ci a!. t h a t prlces have v w i a t i e s af handloam . as our cloth have siubsequent at Harttezx p l e a d helplcesrres?r. discussion They argue to be raised s i n c e procurement prices are and the Latter are? i n c r e a s i n g been going primarily b e c a u s e of high wage east and' high yarn cost. While it is true t h a t wagerates per i t e m Produced or perkg ctf yarn are on averagehigher in t h e cooperative sector and ot'h'hsrbenefits too a r e g i v e n , the iranyof t h m s i t u a t i o n is that tni Keral.a weaver, r e!!laxr.rs sm +ar as yarn corrceurrer! j.5, fluctuations in i t s there is tna cast aS ydr-n r a l a i n the yarn mat-ke*; a Cact thrown iri ti^ rta daubt. p r i c e , w z t h an lipward respect af tne f ineu v a r i e t i n s . reduke t 1 . i ~ Quarest i n t h e cottn.try. regarding thc trend, p a r t i c u l a r l y i n Hence our ab j e c t i v e ~jhould be to by m a k i i i g adequate hank yarn available La !?~hatc\lerthe? p z ~ texper-iencts). t!-~ecciursa CIS CILI~- s t u d y , whict? HCW~VPI., has a l s o contributed to inr-r.eas;~rrap r ' i c e s needs to be taken coynizarbce And t h a t i s , Cha ad hor:fixatj.on Xrr of marqins oat. on different itants arrd varieties of ~ 1 9 t hL y Haritex i n an af.fart: t.0 Irrcreaae total .sales rwanue which w e will diacus.3s l 3 t e r . S~~E?~S~.~J-Q~~~~-.~!:!!:S~\~~. .-kk??M?Unlike procurement it. inargtnal intervsntil3n and sales af c l c t h is the in mclrE:et, yarn t h e majar a c t i v i t y of Wantax. Nnt aniy harjthe p r o p a r t i an o+ soti eties from which pcaccrrcmcr~t i s made increased aigni t ' i c a n t l y stateas much wider. , xF.5 g a a g r a p h i cal spread w i t h i n t h e However, t h e societies in Trivandrum continue t o daminate n o t o n l y bstausa their share at 44)-42 percrertk i n k n t a 2 procurement Table 4) b u t i s t h e h i y h s a t though axso because a production i s procured (I7 l7 ? . lt has declined o - v e r t i m * : (See much larger prsparticir? a? t h ~ i r For inetanre in 1983-84 t h e p r n p a r t i ~ r r oC rsl-udu.ction prccur'edin each region (i.n valiie terms1 i s giver) bclcw: F'rocut.emcnt 8.1 ~ F ? I * C E ? C ~ ~ : oF Production f i r ; X ; Tri vendrucn In valita t e r m 5 kt-ere has teen ail ~ m p r e s s i v eincrease in the valumaof c; 0 t h pr ocured f r a m e\m- Rs. 50 l ~ k h 5i n 1966-67 t o about Rs.350 l a k h s i n the l a t e seventies (as g i v s n in Table 3 ) and then a sharp rncr-edse Frt she e~.rlyei?.lgnties to over Rs.750 l a k h s l s i n c e therl it h a s titaat~ated arr3ur:d Rs. 650 - R5.74l0 lakhs exceptin 1986- 87 nhnrl it almost t..e&.ched ti?e :cvel of 1982-83. i-tante" wz;.s 3tc9~~trethcnt increased t.2 dl-ourrci 15 percent abou-t: 25 p e r c e n t by t h e dec: incd. I p e r c e n t ; hC~eve:- i ~ In t h e S S #,\id seventies; there wins a e a r l y eighties srmre since the sixties; seventies pr.i mari l y Geca~tse shat-p i ncv.ease I r\ ths l a t t c r . ha1f of s r ~ d u citan in then i t was i s stagnant around 40 I nrbund 25 percent. However. whenwe luuw at t h e s e r i e s on pro~uremento f c l o t h i n real terms the p i c t i 1 . r ~is r a t h e r an increa.;ring trend. 67, it r e a c h e d 5). A f t e r titartinq q r o m about 4Q l a k h metre* in 19643- abrjt.tt 8 1 d l a k h mett-cas quantum procured has 1380-83. s t a r t l i n q (See T a b l e i n 1973-74, fluctuated between 80-85 The Increases i n since the13 the latch meLres i981-82 and 1982-83 u~to are a ~ e r r a t i o n s Qui lon Kcsttayan~ Ernnt:ula m T r i chur Palghat Kozhi kode Cannanore Source: Der i ved f ramSurvey Report 1983-84 FI!~,c.c~.l.--R@u~r.*,.*,, 1W3-94. gp-,q& ba.nd "anten because 04 ourmathodnZagy a - a dccl ifie i n p r o d t t c t i a n w i t h more than proportionate! decline i n v a l u e , results i n a 'fa31 ' I t rsnot p o e s i b l e 'thn,L actual pyicas have Callen. 1907-60 too, i n price. In 1956-87 and production has i n r , r ~ ? a s e d but: \lalue increases smaller p r o p o r t i o n ana i~enceimplicit p r l c a aqair~ 'falls'. by a Hence nr f i n u thatp:-a~w-emunt has re~nainedsluggisl? sraund a quantum or e#-85 ra 90 lakh metres $or airnostthe last: one and a halfdscades. A iew aspects sf Tabla 5 snowld b e nstsd : I T for camouting prcrcuremerrt estimates i.7 The methodology q u a n t i t w t t v r t e t - m s can o n i y g i v e t h e dawnward b i a s s i t ~ c eprocurement an upwzrd h i a s and ao prices, which are irtclbal-v'2u.f s. margin c.f aroundi2-15 percent f a r the societies, are h i g h e r t h a n ~roductiongrices. argued t h a t .the p a t t e r n a+ pcocc~rement may vary from t h e p a t t e r n of production, since .the slow m v i n g items soci.ekies may be d i s p o s i n g t u !-!antex. Jef 'Lator shou\d be usen, t h e p a t t e r n of #rotre, klowever. pr ocuremend.r.4-01 +raaflit a b l e 6, w e can i o w s vrwy closely the . . morecwer, v e r y few societies maeared financial pdsi t i urr There? is as t .:, undcr.ta.l:e! msrb:atinq on we irlenkini,c:d low v a l u e d , a wezghted i m p l i c i t wattern; (3) (2) It: c o u l d be A earlier, sdme price see t h a t production ta be in a sound 1arge scale. problem w f t h the ~ ~art h and 'ta t h a t e x t e n t estimates of product ian of h ~ . r l c l l o ~cl aLtr V a r j . ~ t-~i.z@. ~. I=lc~duct-i.m-.-~+ ..Y~ I # ? . hQ .._nd .-1-es ,t!3.mAQh. t ~ ~ n X ~ -: v- .19Q-S.-.03 . ( i n parcent) ----------.-- --..-.-- ...----.---.---.-aduc t i Sai es t hrrl 14ant ex@ -- -.--. - ------...-- ----- - -- Pr -----.--- -------------... ..--------.- -.)-.----.--.----------- -.------C------ 9t1 .- 29. : 6.4 12.4 t3.9 4.4 11.5 21.3 bhot r as Sari s Cungis end K a i lies 51.1i r t i ng arld Coat.i ng Bed street 5 Towel L; Others - - -. --------.---------- Total - - - - - - - . - - - - - - - - - - - . C - - . . - - . - . . - - - . - I - 33.,S 6.1 11.2 7.4 -r.. 3 25.7 263. Lli -- ----...-.-------. -- ---- i09.0 .G? -- -- .--.---.-.- .--...-...10--0..---. .--.-.----I----....---a_. . Source r 19R3-84 PWS Sur vev w .sJ-~. C Salesthrouyh Hsntex by t h e Societies is Yroccri-erneft', b y . HanteSm series can v a r y . declares a v e r y liowevcr , unless drastic revisiori in estimates are valid. (41 t h e s e figufas, the M i th0u.t procr;remeot, very ttrv e i t h e r because questionable (See table atgnif i r a ~ . r t chanc)t-s value of derivd Given such a s i t u a t i o n t h e - r s l i d i t ~ stock estimates given b v Hante.:aec high1 3). Hendl oomh G~rectcv of the irt the have :-rean ctocke could q ~ ~ a n t u n of so r a o i d l y , the a t o t k s are beirra cvervalued ( o f which there i s @ v i d e n c ~O ) r the product nti k nas chartged a ~ e r w h e l ~ t i nyg li n 4avour 0f (5' h i g h e r valued + a b r i c s , wflir,h does clot appaal ts have happened. These data stt-enpthen our. arquncnt that i t is not too much procuremant b u t inadequate s a l e s which h a v e ~ugmentedstocks. However SUpges; i t is possiuie t h a t &hat t h a t it d i d I~appec~ irt i; was procul0ed was b a w d an fct-~y e w s irt favour of TrivandrW large ui o p c j r t i or1 an over w h u l m i ngl y s r c i e t i c ~ which praauce of Ihatis. The l a t t e r is genet-~1Xyacceptedas a slow movang item anti shauld be the f i r s t tobe [-educed in a year of reduced proc,t.:.remer.t . Hmnevw, t h i s isnot alrvays t r u e i n actual practice. Fr-on -Lhs c?ata i n Table 7 which g i v e s t h e annual absolute c h ~ n g einpru~9rhifiertt-- ryirn wise, i n each region i n an attempt t c r capture the p r o p o r t i o r l a t e s k t i ~ f s ~ incr-ease or decrease &I\ - we see that: i n c u r t s i r ? ymus when procurement decl irted sharplv, the share o.F f t l l much less oras I--89, 3 0 1937-88 it in f a c t rncreased. we do f inc! a 1 argo ilie.=rease ir, t 1 v.xvs.nilrr!m in Hui.!aver. the amalrr, t pt-ocuced from Tr i vmdrurn. IJc now turn to Hantex t h e procurement p r i c e of c l o t h , Fente?: put.; 2a percent On ipvolvct!\e~tiic m a r k e ~ i r c qa.(: e l o . t h . ' ilrn , ~ \ : ~ Y . ~ . c ! Einargil? A 3C .b>!eI ? L A Y . S ~ T-.is.t'.j& $ S Y Q ( I I 10 a t w h i c h p r i c e f !: i s c,c.lcj. pcrcmnt on small items such -\a' thur"::,c.!' to about 3 @ . . f fparcecit ? czn prlycstw material. 3c:-ca;l!-.o;: and evert 4R average maruin has recs;~.Liybeei> rai =ed Sale8 of handlaom c l u t h b), proqrrssed rapid1 y f v-omeouut \;:i. . ln~. The pet-~~?t?L. ( i ~ i V.?~LI.E. ? : c ? t - m ~ l 2.180 58 l al..hu in 1L?ti6-57to a 1 ~ 1 ~ Rs. i ~ t 5 crmres by the end of t h e seventies. 1980-81 the rate tu 2". ~ A S ~ V iM te A f re!.- sharp increase 3.n o f growth i7;.; be.zornz .-luqjisi-,. Scrbseq~entlyin f a c t i t was n e g a t i ~ e f o t .a .Few)yearc it? tl?e eighties. 111 relatlon tr tmtal s a l e s af handlourn 1-10th Hafitex ' s h q r a r. ncrsaseci cu aln\ost percent i n 5782--83 i'iho Cmmittee, though it is nat value w quantitv terms). tat.qe'i l;r?vis;dasd by v e r y c i a a r whether t h e y the Siuaraman mean!: it 1 r! Si!.!c-s, t ; i a r ~ , 5. t dec3 i;led sharply to 25- i 30 percent, Summing up: T h w c i s no d e n ' y i n ~t h a t Hentex' a c t i v i t i e s have decelerated since t h e earl y eighties bath i n terms of procurement and salesi appsars to (in v a l u e terms; ; pr.tacur.emant of ~ B V Pstag!\ated Gince c l o t h in real terms the'secund ha14 of the segenties. However, the sharp431 l I n it& r e l a t i v e share ( t h a t is i n relation to total production and sales i n the r o o p e r r t i v e sector) i s a b i t p e r p l s x i r t ~ : . At-ethe societies able to beartfie burder! of di5pasinq of a I ~ . r p r of i pruduction , therebyaccounting f us erltn05t 70-75 oercent c$$ t h e sales. Given t h e overall performance &these societies; t . h i s dues not: seem possible. over estimated as also sales? Clr, is productiMI bein@ While data an looms from the 1987r 88 Census skggests that production could in f a c t bamuch less than what is claimed naw. 84 couid v e r y estimateso+ total sales from 1979-80t0 1983- well be exaggerated, s i n c e fo c o n j u n c t i o n w . i t h production figures t h e y im:y l:.ttlr Hence, w e can conclude, thatthere appears *Lo be a rjkagnar:cy/+.@* a l . e r - d t i o n in Hantex' activities brought out i n the cripl7ties. though rrof: s ; t i i t i ' r . t i c s sirrcc b y published .the averstate t h e growth ui t h e cuoperw'ci ve sc_ac+;ot-, as shat-u as is latter tend to Xnfihe r u l l awing eicctian we ewami ne t h e mat-k.et ii+rg 8 t t - k ~ t c t r a and aol icy o+ tictn t e x , s ~ p p a r t c dby a f i e l d v i s i t kc; . . 1 I th2 s a l e s dcpatrj in the I* we compere Sale3 ( i n quanti'ry) w i t h production :in quatity! there is v e r y little sr.ack.: as estimated urrcfer P r o b a b l e Seuc!: . ..---. .-.- ------. . I . 1 . . . . . . " --- t:r-odb.c ki G!? ', L! -.' t i r ! l a k ! ~ t i i t F;s. metres) ---..)---Llr--1- 1979-80' 1980-8 1 1981-82 1982-BJ 1983-84 . . I _ _ . . . - Sales Zmali.r,Ft i Lakh) --- --- ---.- t ...-. .--- ....- -.---... -.----. ... 230.67 t 2 S . 73 4.0 2454,53 242. a2 r P73.82 7-86 223.96 225.37 1684.65 7.38 252.54 242.46 IS71,SS h.48 216.74. . 29"j.'~~23@I;.3 3 7.33 293.28 ---.---.--__.I......-- *.-.".-- --I-------.-- . . a - -- Probable Stuck Q D V* ( I n l a k h t i n 1.akh (in 13s. metres) metres) lakh) .r---.-.----l-.."-..--.--.--.--.--.- 6.12 t8.66 -27.15 25.72 2.64 36.74 147.09 (113. Ih6.67 -------------...-...--.--28.56 Source: Survey Report SC?O3-a4. Value o f q u a n t i t y ncik said i s e s t i m ~ t c dby multipLyinq w i t h * i m p l . i c i t price, Hante~rorganises the m c r kef: i r ~ qof c l o t h i t pr ocures f ram t h e menbet- societies primari i y throuqh i,,bocrt 2413 are irtterstatei tat^ tdlbich has been d i v i d e d a; 1 c.errr the 5pread which 14 de?pot-s i n t o eight r e q i o n s ( i n t e r s t a t e d r ~ w t sc u n s t i tuta the ninth r e g i m The Larger majority a f t h e depots which w e have not s t u d l e d ) . one-person (or snd each r e g i o n has at 2 peraan) estsbl ishncnts least one cmparlun and now r3om. .are There is a l s o an i n t e r n a t i o n c l ready made garmf2nts show r-dun\ eittacl~edtoi:te Tri velndrum show room mat-ketinq t h e p r c t d ~ t c t r of han4:ex Lncernat iunal . Besides these salesare also done t h r a ~ t y hagcr.sies(not many) open a i r s t a l l s and at exhibittons 2tc. Ea:h depot stocks q a b r i c s it-, accordance w i t h t h e 'insurance wcnourtt. f i x e c l 4i.r ~t m d a m ! r , l c ; r ~ ~ ? r - t m c m t(s t h e 1stter to goverrtmerit ser vanta sclbstanti . ~ 1 ~ a r t cit.! i a?-1 over three f o u r t h s of t h e period adding gpto T'P1 13 . ~rivar~dr.um; ca.n be q ~te i we1 1 known t h a t 1t i t h a rebate s ~ l e e ii n a )reat- are Oul-ing davs (earlier c o v e r s t h e maaor f c s t i v c i l s , Of ~ a l r sare in cash w c r e d i t it was + o r days! which Oncm aloila accounts f crr 40-45 t h e sales followed b y C l t r i s t m e l ; , Deepava!. i , Viahu and Fal:r.id= The propoftion of sales dut- i n g rebat<.?apnears to have increased I n r e ~ e n tye&r5. It was about 75 percent in 1007-438 and 87 p e t . ~ e n t in 1980-89. E a r l i e r t h e dcpclii; mannqerr, oceparcd quarter1 y i n d e n t w$ items t h e y required ;.rhict; was forwarded to the Regional the Managers sent them to .the Head Office. who i n turn consolidated these and The latter than region wise the consalzdated classiCying t h e m ir,\to two broad categaries (a) r region; and ~;peci.$icati,or?ls~ c l o t h raqirirred by ( b ) c l o t h required f ram a region. The l a t t e r was then sent bazk ta t n e regional, managers in the forma+ p~acurcrnent orders, to bedistributed ta t h e coop~ratives j o c i s t i e e r ~ l t h i n their ragfan. Some ~ z h e c k was produced and nnce Central d e p o t k e p t an whe+her the ready were brought f r a m 3;ttached tc 9ach despatched to othcrr+gianrr a5 fhe p r ~ b l e m sw i t h this Det- goads were being the ~ c x i e t i e 5LC? the regional manager's of;fice and their requests i n c a t e g o r y la). lay primwr-tly i n the Lead ti:!~e g i v e n Car production and matcC~ing o f s ~ ~ p p lwyi t h what the depots had asked f a t ( 13 . problem Whxla .from t h e s i d e o+ - o f ten t terns nut:based t q make up the morm on on at-i gi nal requests waul dbe given in~uranceamount;Srafi Wantex ' ~ i d at h e probiem wars account of the ?ormet-. very close to t n e deoots, the l a t t e r was .a big The t-eq~testsw ~ u l c f coma perhaps rebate per.iud, leading t c r a scramble to g e t things produced and despatched. becauseof d e l a y Cis Car 8s the? sac19tie9 system was not base3 on kmors b a s i c problem was any scientiric detarmining/predicting runsumel- pr-afercrtcea. depended on impressicrn~ of: the dcpat demand. c~ncerned, in processi rig procurementarders, very 1 i ttls time war given to them to uxscl,(.t..r the: w d e r r , that t h e Herb The weavers l e r g e l y prtlducad system of The whale exercise managers r e g a r d i n g market what they had been always little producing and tkntexrnncict ile;rv togain c o n t r o l over attenrpt whatshauld be p r s d u c e d I n Ixnewirh m a r k e t demand i f not directly, then at recent1 y the PWS. least through i ntr-aduced, While some t - + : q l ~ i r i n geach depot statement showloy t h e i r ' zkuck i n hand, stream lining manager war ta give a anticipated stack a f t e r 3 finerr,ths and a montnly r s q c - i i r ~ t n e n ta f t c r t ! ~ a tf w the next b months kn a.n attampttc. pt-c.cur+,ewh;zi: was reouir.ed ontima, there was still no basic change in the prccudur% fcr aetermininq wilat is required which we brinq have e LiC latar. a reqzarr :-;i se list oS t.he depots ~i t h c a r t s i n perCormsnceindicatcvs 1 i k e saZcs ,expenditure, and pra.Fit/locs f o r t h e laat fouryeat-s t?66-a7, 1987-80, wise 1988-89 a . ! ~ d1989-90. The age rflstu.ibu+;ion lsf the depn'l.5 (See T a b l e 8 ) shahs that almost h a l f are ' o l d ' whi l J a being s a t q~tartot-nun!bering about 53 up on 21.7. t51 khan Hantex are v e r y 016, was established; the largest number, 31 was belwceri 1?&7-69. Q r a ~ ~ n56 d of n@nf. t h e depots were opened durinpthe seventies; opening a5 new depots was rather slt.tqgish i n the 80s - csnl y around 30 Hantex ' growiirg i i n a n c l a l difficulties. - prcsumabl y b e c a ~ i s c0 4 . Aae D i . ~ ~ i , ~ i . b ~ t i f i _ - i q f ..-3i;i?-- 2 . e E.s~i.&&ke~-..gf,.Focc ~-~~~ .. cr-~li>i.j,p*-S.. $ ~ $ ~ ~ ~ . - ~ ~ ~ - Q ~-.+gE. ~ - - o - Y -------------..-----"... --..-- ... -- ..-- ...... .--.-..-Year of agmninq Ho.of Ah Depots 1 2; a: XC.~); C.sttits aewin.; p:of A t s - -. -.-----I--------------------- As 7. 04 i4a. a i O e a ~ t r A s ;: o i T~t4i s a i c ~ n q loss Total ?-a&::&ng 1906;87-89/?!2 L-~a~inq SeooLii DGQOLJ ..-..- ._..--...- - .-----. -----..--. -----------------a----..- us. ! ...--A- i7 93.2 4; b4.d 17 i-a&a;Ai961 52 Li.5 27 4O. G 8 . - - - - - - - - - - L - - - . . - - - - - - " - - - " . . - - - - r - ~ - . T~trl 186 3 6 mi. ---------------..---------.-r-r---. #8tts: '*r . L L-C..--.C..- ... .---.--)--.---C-----^--- 1. lTi@i 1. Ue3~. 44.7 St. ..--..-..------ 1Q8.8 -..- ---------.-I 38 ----.----------.-------C--L--------C------- + Total i s tarcen 4s 1 7 1 r i s e . inciutinq 7 i o r uhlcir no d a t e o i openlnq i s giveni r - ..- -.---. I0LT.i) ---- fin a n a l y s i s oiF t!t~+l i s t a f ( J e f ~ ~ ths~, w e v e rshows t h a t o f t h e s e 193 state-wide a ~ a o k s , uc~frs, & s u t .a "se.f:\~.uryeat-.-5 styd z l ? a ~ i43 ~ J~CUP-P'LICJf vstiir\ a l l f ocrr p r o f i t i n al: .te ~.es+.t,t h a t ; s &*out ?4 dkpats a3 tef-natcd b e t ~ e e n p r oift year .3, *at I and li.!c.s ysais '?l atr 38 percent were making i l f he ;j : . z t t h e at; ! e ; l % k , t;lc t h e last .twa .dc&?ats'itaking fjroCit far !. F: :I;L).IYI~C.\:~ marqj, rsa; ;y enhanced ta 7 6 ) . T e d v a i l a b l , ~i n f ~ r m a t i ~on n tho .four'-yrat- ;,rtsfzk iiiab.!.rt!~ t h r ' g l d ' ones set tp !.;-i are ' v u r y o l d ' , t h a t 4:hLr-rJ - e s t a b l , isher? unly in 19b2; ' m i d d l e -aged', tnr'ee percertt in trte e - g l - j t i e s tisee 1 owest gjroi>uf-ti . ~ r. LI)T: t h e total number cieaots o i bepats ) disccrrt t h e a little 1-5 than one t h a t is set up in the in the ,See Tat1 a 93 .that are ' young' region). i cs in Trdci!ur, account far masr . 1s tilase table 0 ) : (ti) ~iut-pt-.i.~i-n~j'l): ti?c l.:hs:?e proqit: mak.iny d e p o t s K ~ l l a m , Ernakulm and Kozhikade making e n a b l e s cs to .)Jhc~~ i : < x i e s &r~d , a+ these mui-e than ha1.C i s 39t up 32 p r r c c e t are seventies ar;d cileputs wh-h%- '!.~L.V.Z?!I~~~U~II K~ti;i..yam, oC the pr'.?+ii Hcwever F t nlust- tie r-emenrbercd thatthis furns on averaqe not murethan 35-53 firrccnt cC t h e total nunber of depots in @ach af these regiarrs. Tri.v a r i c l u - ~ ! f i ~s' h a r e i n i n + a c t . ideell y , our iielci c,urvrsv should h a + i n c l udeql a isi it: to the dacgts it? at least: OF!^ 2 5 x h ~ s eregion4 perhaps Ks,,rtsik w e , to c a o t u r i r ! , ~ r t h - S c ~ u ~ -rh li j +~rancer. mJ show rooms have ir? general them we includedin tni s qr3up: i n the list a+ W m t s fa11 , -, c~l l i l i - r.t.!f-u 3.. ..;t+.ii ct ctres? depots S e t a1 ! not I tlrd : ,- 5: . ? sufficient one f c.r c e n i f i t i r;n bi.tt~i +cr 9r.r.i; t:. LuL earnir:g p r o - f i t ~ i eSi!it.y earr~lng high ogci l ~ r 5!7 Thissuggests t h a t h t gtrer s n l es i s bnece~si~ar :r zr'.?! l-y a suff icierrt - t h e ' c ~ t a ?numot-r a*.: L I P ~ # ~ L'LS= 19B-';.-5'(?, 3.1p:..jc+. to? 85 w i t h i n Che <dl r , :-:<",A,. :. S ~ Q W ro~m/empc.r TI!!.:i i ~ a k i n gueuvts. to s a l c s i r t ranked according Q nc amortg .tne h i q h e ~ ~ tI.+ depots are ranking. loss 4 i/eclv -. per+crn?sd i4ai 1 : cl1:nrj:;t rtot iii?tf c. red~!ce c axprndi ture counts. Wfwe w e draw some axplain how p r o f i t 1ess::lans i s calr~i.:at~c+ l on 'dtp8t i s per-cers!: gene-ated through aa: r.5. why - t i m e 5 1 Can incur say A bet- Zhu * t I - :-::;~t J i !!!=rti:.is~~ed . a 20 s e r t s r ~ t ii; boric-z $ o r each . CY.C-: !.!.'! s~')oc~~u E?, >he :,r!rpluzj .< 1 3 3 w ~ g ~ 6nd e , ! ~eductcd. -9 Depot G hcvf ncj :4igher s a l e + kt1211 anather Deoot loss; i"ls sales not high enough. 54lm r?:IJ.: L . Fr-ctm th'.5 urluiapr, rent and i n t t z r e - ; ~e . i I.c.ltitPu.: L I ~ + ~. . . - , L. ~ Y : ~ C I 1 J.I t . . ..- ... average, as i . L s pr-of i % . - 20 . : j ~ i:!.ip earlier ,or! the procr.!rentsr?t: o r i c : oicl ~ cdh wqin : ? . . s ~ = i : - ;ie ;e t!!z-; *t-cjnt t?aca;.tae its e:,.u!?naittrre Since ?daycrcu;t~..&1-:lc! %hes*two daputz and i n t a r e s t w i l l be hlq:. ,;.J wrtiy. is higher ur at: Kure or- less the 3,-e oileut- i w :,?rst>n JepsLs, s t a c k s a r e high ior s l t ~ r n a t c t l y rearm, rsduclnq pro$it. i n the case ~f t cf.egot v+iu.h higher One of the reasons why3 lac-gu t:unb.=;~'.of t h e ' sales- very =*Id' deputs are making e pra+it wakld be the c,avil?q We1 1 Ln r e n t . located, rcasenabl y b i g shop spaces, are Secomi ng i n c r e a s i n g i v p r a h i b i ti ve Hsncs in respect o f rent andl in terms of the rerrtal,. t h e r e is not much scope o4 reducinq the taka1 volume at' 1argr;r amai:.rlt; hcjwovcr 8 per ;.tnit cs, will b r i i ~ q ddwrli.rcuat saJL.-.. redtrcirrq stocks wage cost and b y Empori a and i nfrerest c e ) ~ tew?n 4urtttet". s h o ~t-aofcts nave per-farmed b e t t e r 1st-qelv due to such economics of si x e . 04 course other th&.racter-i% t ic 5c.f e!npcrrF a vi;: mare spa.ci our and a t t r a t z t i v e s l - r ~ w runms, bekteln +aci l itics number uf larper j. ten19 f o r display, and v a i v i c t i ~ s , wauld a l s o nruch i n t e t - ~ c t te The o v e r r i d l nz i.~api>i~ twnce .r{ ah arpe ual ume a+ btisinesscannot making d e p o t s (in al; -Fuui- ;1rar.5; - tcwnging . far .!-r-om Rs.3?,ClflFJ .-. Qn t h e to a ine:;irnl;in titr-,at- Firriid: t h e 71 graf it nlac:bi.\q i s the smnL I. sireof their sales a-f ahatit; Rs.2.5 1:he 1c.cr;rst sale5 d c ~ c j t swas lakhs fsen, f i g u r e recorded over H s , S lakF.15. Hence, as suggested earl ier- , ~ r ~i ? e ! ' . ~.;.a s?wogl . d gener a1 l y rcs~tl ti n a 9ro.f it. However, another. m y tu makc; profrt in s u c h a s i t u a t i o n i s t e increase t h e mcrrsir! i t ie one &-F t h e measures ~resut-tedta in i t s a t t e r n ~ k stu increase s a l e s i-evanue. ha+ t h e average m & r ~ i n incrrc-raficd to 25 percen-l: ir: 3989-90, it has P-aised maruins vet- y Hantex tias Not 91,rly the la3t year sharp1 y an at, least ofie f a s t w v i n g i tm - p o l yecter shirting t2' rf m inelastic demand. It was perhaps on suchan assumption a l s o that theBengal S a r i s , very paoular rates exarbitant incmrrect presumably cn the assumpiiw, ) (almost i n Kerala alra, were ~ r i c c dat Rs.2SQ per asrjumpti.an i% barnc Sari ) . That it was an the large u n s o l d stacks of out by tlrcst saris i n rr1rnos.t every depot we? visited. The intricacies of Mntm p r i c i n g p o l i c y a r e still notvery clear to LIQ but one thing which struck us was the very sharp increases i n prices sametimes evm twice in ayear for almost a11 item5 and varieties. Kerrla ' t o r t h u ' of the cheap variety shawrd an Even the increase'+ ram R3.3.30 two years back: ta Rs.6.38 now: a double dhoti (I@@ x 1003) was priced a t Rrs. 75 i n 1989 Orram; Rs. Rs.96. . casting CI Knsava sari which Rs. 4501 nawj price of 85 at S ast Unam and ncrwrosts was p r i c e d at Rs. 345 l a s t year was Lcrnqi material had lncrceased from Rs. 13 toRs.22 per metre; satin sheets (9G? i: I Q B ) c o s t Rsrr. 19B last h a m and wars p r i c e d now at Rs.214. Theirtct-eases d i d not ssm have any pattern and were apparentlv very ad hoc in nwly designad ti,e and d i e c a t t a n wlcome e f f o r t a t similar type of n a t ~ l r t . The sarierr, ( w i t h blouse pieces) a d i v e r s i f icatian of priced a t Rsi245 and to t h e product were however above campletel y out: af l i n e with non-handloom cattan fjarces. Thouoh prices we 0.F have compiled a t a b l e on prices af Hantex c l o t h , both procurement ZPP) ---,.. 21' -.- I n f a c t H a n t e ~has indulgedin an ' u n f a i r ' practice which could a l s o be described as a shrewd s a l e s policy by stamping w new prr r e o f Rs. 42 an e x i s t i n g stocks af p o l y e s t e r ~ ; h i r t i n gpriced ear-iier at Rs.36, a 13percent increase. and selling prices (sea increase in PF and SF mgvs similar-ly ( h e n c e a n l y increase i n SP i s g i v e r ! ) t i 1 1 1908-G9. SF few varieties Evcnsa i t does q i v e a feel o-fthe fast: changing prices T a b l e 10). - (SP) it ral.ates t~ a very because uf Irl t h e lacst: year t h e change is higher in the increase i n the margin (SP/PP :.( 1168) to 25 percent. A t t h i s j u n c t ~ ~ r -when a there isalready a tendency f o r handlaom prices ta increase r a p i d l y each year such adhac p r i c i n g measurer we .feel a r e cshc3rtsighted and liable to boomerang as was suggested very forcefully- t o us; i n the course o f our f i e l d v i s i t . f t is no . .. wondw t h a t t h c r c i s further bunching of s a l e s around rebate time. U l s c ~ though , sales i~n vatiis) haveincreased f ctr almost a1 l d c ~ o t ~ , it was g e n e r ~ l l y conceded t h a t t h i s was more due to prices than increases in q u a n t i t i e s sold. movement w i t h . theCcsnsumsv price index as increasing We compared t h i s p r i c e B p a i n t a f rc.ference: the! ratas of cttangain t h e latter- ars much lowerthan in handloom cloth p r i c e s ( 2 21 . Rnd f r o m a quicksurvey we,could sinultaneausly do prices of same comparable millitarnsi, 1 i ke d h o t i , scttrnund, on c~ttan s a r i , p o l ~ e s t a r shirting and sari, it w ~ sevident that the increase i n handloom pricgs was h i g h e r . 22 Consumer Price Index f o r DifSeren.1: Centres in Kernla ---....-.-.. ----------..-- 1983 1986 1907 l?B8 -----.----------- t 3.97'0-71 = 100) 1989 -.--I----.---.--IC-C)-----------------.-----..----CI---------- T r i vandrum Percentage Change 32 1 350 378 4-9.0 48.8 ---------------...----.---...---.-.---------.*..--- 3 ~ 5 4.5 420 +6.3 . . . I - So~trcee Kerala €canensic Review, Vari oucl Issc-les. It may bc of.frcts o$f season saTo!.i. d the -frequent nnted t h a t ?'tiis as; is, there r s r,o Cons~tmer.p s ~ c h o l o g y , being denying the f e c t t h a t cunsctmer-s wait f o r the rmbate peri odtc D L t r c r * a s e hand1 uotn -f iibr ics. a l 5 ~rational and hendloorn cloth in handleom t h e a+$ 'khev season. c l o t h , a r e rrs w ~ r e v i e w eroded - pi..~.rchasr; man preCar to Tlsc handlbam is f a s t being and of betier- quality e x p c r i e n c ~that their But coi-isumcrs are i t r.; 5 e ~ a t . 1 k r~m~ earl iw- n o t i a n o+ clmth being cheaper through prices a l s o ccoitld qathav-, in the course WE our v i a i t s i s a c;t;ri.ous problem. nhrt it change i n increases i n prices of a majar c t s n ~ t r a i n ton promoting salrs. Our, survey con.t.ic.ni~dt ; .rjespiciori ~ that have gone i n t o niaking t!te h c r d l y any ef f arts attractive. pr.3du.c-k snleab.\c and There is almast a complete. absenceci8 c-hanga in design, c o l w t - o r pattern i n traditional items oC prodtt..ct~an, a d d ~ d t okrhich quality. . is a d e c l - i n s in Hence, Where apyei.ai-rj .to be l ~ c kof variety even ir: i t s The chdn2es s h p l r products, k i n e f ntraduced in c e r t a i n newer i tmms are wal come but: inaoequatc, 5csi de5 O s i rrg h ~ r dy l pub1 i cised tttlrse . are a1 so sa!ne.t,i m o s inatancc even zn respect a L 1i a fast 9.l; wi t b mar k a t trends. r;or;ing i tern i i ke Far polyester s h i r t i n g , c h e c k f s t r i p e desriigns which nray have bornin .Fashion s'ome years back are campletei y c*luurad material. cut now f n favour of p l a i n sirlgle The mles ofprintad sheate which appear 3.0 e ~ o p u l a pi tern can cst-ke.i ,?I y be boosted w i k1.r goaddesigns. 11- the basic problem w.i.tl-; t h e marketing system. infrastructitre f a r rc.ar!.:etir\q i n t e r m s of shop apace and b~? Hcrsi n 'While the lcrcatian of depots i s quite :npres.ive tthaugh not . entirely f a u l t l ~ s ) ~ ~ there is -no i nnovati vc 3 a l e s p o l icy based on market research and sustained e f f o r t a t product d e s i g n . at p l a n n i n g Hantex has nade same a t t e m p t what t h e societies should orodtice throuqh its Demand . Ori e n t d Product ion ~ r a ~ r a r n r n e ~ However, ~ t h i s is neta sustained a++ort, had a f f e c t s less than 2-3 percent af praduction; it has h e l p e d 1argel y I n stream1 eninq procurement by t h e depots. Summing up; t h i s a n a l y s i s af t h e marketing network af Hantax our reiniorces empbael s as t h e expenditurs avganisatian. only on increasing way 5f sales generating T h e attempts at increasing and r e d u t i ng surpluses +or the margins, and frequent changes i n prices .to-..sustaircqrialac~ revenues a r e seen to be short si ghtedand ad hoc w i t h pasai b1edel.sterious ef Sect on sales, w h i lc same attempts made at product d l v s r s i ~ C i c a t i c j r .a r e welcome but inadequate. R&orc wc at.tempt ta anal ysethe f inanci a1 perf ~rntanceof the organisation, we digress a bit 'to answer a question t h a t may v e r y well be raised; 'Is it +easible ta siq;lrzi.ficant:.y ir'lrreasrthe s a l e s af hahdloom f a b r i c s in K9rala7 The handlaom sector as we knaw 23 F w instance, i n a bustling, commercial town like A t t i r r g a l t h e depot, wa% too ~ n t a l la n d . badly i n need of venovatiun or i n Chirayanki 1 , c j i ven I t s insuranceamaunt was too small, WE wer-e t o l d t h a t t h e s e problems were already taken cupnj.zance o f . Anathcr d e f e c t we noticed was the campleteabssnce a9 same notice baardta announce new i t s n r s / v a ~ i e t i e 5 . Also rn0l.rj.t of: t h e depats d i d not have any display space a r p r a v i s i o n a+ geed show cases- 24 See F_epPp_ct,-. .-sa- F L e L t ~ r - ~ ~ a r l ~ ; ~ - ~ - E . v _ a ~ - ~ e _ t j , ~ n ~ . a d prepared by Hantcx, lYH9-90. trernendcsus compstitiun -From cheaper mil l crntinues to face pmrrloom c l o t h despite .the pr-atection i t enjoys. and ( I n Kerata, i t frees competition from the clieaper hanctl~omc l o t h from Tamil Nadu tw). Powerlmms,as is wsi 1 known have, brazen1y v i o l a t e d orders m reJtrvation i terns clf to 5% axc'tusivsly praduced . list has {the recently been otc handlooms . enhanced). And all this i n an tnviranmer.rtin which nan-cotton and blended+ a b r i c ~have made a b i g mavkct, production a+ which on ha~-tdl.oomsis st.ill entry i n t o the very small, and per capita consumption of cloth has tended to rcmainlsl~tgqish. Hence, there i san i n-bui 1t constraint to r a i s i n g sales uf haandlaamcloth substantial ly. as~umethat t h e s e p o s ~ i b il i t y oi. Hawever whet prompt3 crs to Hantanincraasinc; i t r s share o i t h e market is t h e v a s t p c t e n t i a l t h a t e x i s t s in t h e s t a t e on account of r (a) a h i g h propensity t o cansum cloth as rndicated by a nru.ch higher than a11 India ave!-age of proportionate per capita expendit~treonc l o t h i n p , and ( b ) t h e l a r g e s c a l e movsfient a+ cotton $ieca goods i n t o tl-re state (since Kcrula h a r d l y praduces any mill clath).and even handlaam cloth,from outside, primarily Tamil Nadu md Maharashtra. F, Large amount af clnthcomes i n t o Kerala tllrauqh informalchannels too, p a r t i c u l a r l y throtighthe Gulf and att?er rmn- rrsidentKeralites returning horns on 1 eavesr atherwi sa. There are a290 itinerantsellers + r a m otl.rcr p a r t s oS I n d i a p r t m a t - i l y dealing with handloam satcees a+:those stateamore v i s i b l e of course rn the cities - suggestinq a growing t a s t e towards c o t t o n sarecc;. bt larst a pat-t 09 t h i s could be substituted by )?antex t7and3aoms. While i n 1975-76 t h e value o4 c o t t o n p i e c e goods coming i n t o K @ r a f a through the farmal channsls handlaom goods w ~ Rs s . , L575 was Rs.2261.72 l a k h s Ial.strs (by road alone) Han.tcx in that. year wereRo.2h0 and m+ fibs sales of lakhs or 16 percen't ofthe incamin, handloom cloth and 4,7 p e r c e n t of a l l clu'kh, By 1,980-81 t h e value of c o t t o n piece goods had risen to Rs.3076 l a k h s and oS handlo- Swles through Hantew that cloth on1y marginal l y t o Rs. 1078 1 al;hs. year had r i i ; e n to hs. 673 l a k h s o r 4 Q 'percent a+ handloom 'imports' aione percent a+ and 14 conclude t h e t a t a l 2s To that: Hantcw has curneracl the 'imparts-'may be -Far inare thari a year. largeness a+ t h e market;). some extent market. w e ma? ( O f course these The data o n l y indicates t h e Hence there does exist a p o t e n t i a l m a r k e t that can be tapped b y Hantcx. $-ecj>-qr~. -4 F.insn-c:-~&P-erLo_~,m,m~-nc:~~~a-f-~.b~~~~c In examining t h e 4 inanccs o+ the Society we can s t e t e witnout that considerable windaw dressing mincinq matters with stoc;..~ (in value) understatingi ts Inssss. while prefjarlng has been done the accauntrj theraby We haveanal ysed t h e accaunts for roughly the last decade 2978-79 ta 198Q-89 (See Appendices 3 and 4 for a summary o+ t h e P r a $ i t and Loss Accounts and Ral ance Shhht) . In almost every the carry-forward ' year t h e s o c i e t y i n c u r r e d a 10sfs ~ h i c hw i t h loss f.rm the beginning the p e r i o d r e s u l t e d R e p o r t s on Inter State Movement of g o o d s i n t o Ccrala .and n u t af Kerala, 1975-76 and 1980-8:, Bureau a+ Ecanamicr and Statistics, K e r a l a . i n an accumulated ' loss uJ: aver Rs. 3 crorezs b y I n fa r t 1989-89. lms i n c r r t a i n years was a:jse~wed t!:, be higher aspar the audited statement, largely because r l a a i n g 5tocb:s had been overvalued Ihe interest due had basn understated. The audit: statement 1W4-8s f o r instancs painbccl out t h a t t h e l a s s far t h a t R ~ ~ i 4 . 1l 5i ~ k h s , and ths accurnt.rlated lass, Rs.174i.31 or sf ar year was lakbs, while the cmpany's ownaccoitnts r=,hc;;weda current l a s s a+ Re,. 26.94 L a k l ~ s lakhs. 87 This was p a r t i a l Zy ad j u s t s d ever the years 1985-86, and 1987-00: huwevcr 1akhs R5.20 about rutstanding. Althotigl? loss la4t year is seen is still 1986- refriaifis ta hwqc declined, i t nat possible to state this kith can.fidcnc,e wi thou"ctke atldltaa In .Fact a1 lbwint: 8tattmmt. $ 0 t~h e above pending ad j~tstment and perhaps more,' the? accumcil aked l a s s could v e r y we1 1 b e aver. Rs. 3,s crmres thuswiping ou.t the net worth sf the company. In financial t ~ tn h i s would mean t h a t toe campany had become insolvent fZ6 1 . S t is not very di-fiiccr1.t tc, 5ce how tbis has happened: whllt? ~rlms,vrhich constitute t h e roeitty f a i l e d sfqectt vs te grow fast enurrgtr , cxpendi ture { i r t t h e ayqregate) inc;rerrcrd a t a much higher rate. S ~ * S W8S 2' volume af busine?is f r r r 'Cks 5.83 percent per The cornpotrnd r a t e anrum over this periad, oC qrawth .ti1 b u t it was I t may be noted t h a t except f o r t h e meagre amount o f Reserve and C a p i t a l f und, tne yest o f therssarvas, G t ~ i n g i n the nature a+ provir;ianc3 rsSlacting 1 i a b i l i t . i ~l ~i k e g r a t u i t y or v a l uetinn oC assets ec~. depr,ec.iati an aren.qt included in shareha1 clers ' net worth See B.c;f,!t~.ay-.-=,t-~~.k ULcLha_ w re~ O f f f i , c ~ ~ I I . \ ~ T ) i . , r ~ ~Rantbay, $ . ~ r . y . x Vo!. 1 , Ezr p i anat nr y Notes. . between 12-14 percent f a r e s t a b l i s h m e n t charges and administration and other expenses. in four years when t h e r a t e s of neqative, Xn +act between the yearz198J-84 and 1388-89 znnuai percentage chanqe in the expenditure were positive and h i q h . re?tcrccl on investment ,ROI ( t h a t capl-cal empluyed! , sales wan mentiunoc! items Needless to say of r a t e of ttte is n e t p r o f itllcrss a5 a percerit of t h e c e n t r a l p r o 4 j . t a b i l i", f o r rrcost aF the years (See Table 1 1 ) . prof its to s a l e s abave change in r a t i o , was negativm Similarly' %he r a t i o of net t h a t despite a was r t s y a t i - v e which suggests 2@ p a r c m t margin i t provides +or on sales, Hantex has not been able to {:ens?r.etr a s ~ t f . f i c i e n tsurplus s i n c e e n p s n d i t t t r e is t o o h i g h and s a l ss a r e not1 wrge enov.g!l. C e r , t a i n Sactclra whi chhave a dampeninq e f f e c t orr income F r a m s a l e s strouid be nahcd: a i the unnecessarily Aang d e l a y by, t h c oavcrnm@nt i n clearir~q up its dues arganisati~n. 4 b e r e t v r e d u c i n g rhe latker's iiquidity. awes Hactex abaut Hs. i .4 c r o r e s cror-e5 nn credit A C C O U . ~ ~ to ~, a5 T a b l e 1 1 nhaws in r e b a t e to the It and a n o t h e r Rs. still 1.5 g~)ve?rn:f)ei>k ~ : e v v a n t s ~ This r ~ p r e s e n t s almost 3.6 months' sales. Hawevcr the amount Hantexawes t o i t s sundry creditors,vir the p r i m a r y societies fumt w h i c t ~ it p r o c u r e s cloth is milch higher at R s . 5 c r o r e s ; i n v e n t o r y 40 s a l s s r a k i c which increases cbsts income. B9! [b) a. h i g h without adding t a X n v e n t c r y / s a l c s r a t i o vias a v e r 12 months' sales i n 1988- Tho~!gh i!: is not: a.s high as i.t: appears in value terms far r e a r ~ r r r jdis;icus+ed earlier, i r i physical terms there is c e r t a i n l y a. scria~csproblem ~ + s t a c l r so f t.ti.vsaLd cloth which should be d i s p o s e d of. the #v,pendik~\rcside the question On wrre r i s i n g so fast.. We USE " c h e is why and what casts common, s i sttdi ncocrre staternen t: for t h i s a n a l y s i s wherethe vat- iaus i tams o.F awpendi t u r e (uato t h e net prmfit/loss stage) at-eexpressed as a percentage of ss.'les tcken as in. It: shows what pevcsnt:(sr..gs of n e t sale5 i5 ab~siorbed b y each individual cost item and the underlyingtrends (see. Table 1 2 ) . The expendi.ture 15 o+ course majar item of cast D.): purchaamd'since it is a markat i ng 01-ganis a t i a n . iten 'of cost i s ascab1 ishment qocrds Ths n e x t l argent sale.ries), iiwaqes and charges praocctred/ fallewt?d byadminzstratian and athsr expenses (whf ch inctt!de!s r e n t , bmnus,inlrurence and advartlsement/publ ici ty) livmn separately . ' Irltsrest ' has been cast to t h e a r q m i ~ s t i m . Since a large pr-apartianai the! i n t e r e s t due has not brm paid rsince it. is an i m p a r t a n t (on 13over.nmen.t: loans) i?s r l e C l ~ c t e d elso in i t e n t 04 i t s burden is ~ t n d a r % t a t d . T h i s in the Table I1 r a t i o In,tersct and Bank ,Charges as a percentage of t o t a l l o a n s ( s h o r t term andlong terms) which is f a i r l y low at 7 $ercen+;. The pitture is somewhat skewed Muever t h e pr.currmrnt is .. cS eae. broad t r e n d s are seen ta be v e r y rduc? the prapbrtianate because of t h e lar'gc 1 0 5 s ~ ~ . Whi :F? the' expsndi tcrre an high i n the initial. years as t o shares of t h e o t h e r . i terns to v e r y small nun)^^, the larger increases in establ i.shmsnt rherges and other mvWhmads inabsolute quantum, i n parti eul nkastabl ishmcnt charges, has lmd t o 4 - f a i r l y sharp lncreaaas i i ~their r e l k t i v e shares since? Hence there was a sales rbsarbed by sharp decline i n cost of pvocurement/purchase the p r o p a r t i a n a+ in the l a s t two yeat-e,whi 1s establishment charge3 increa5ed t o l l p e r c e n t by 1988- 89, (Crem about: 5.7 parcei\,t i n 1978-79); administration and ather esparrses accourit f a r 8.5 percent and interest: far 7.04 percent. The above analyrris: s u g q e s t ~that inthe f a r e of in saies and a high to ad just by t h e company ha.d r a t e of growth i n ovcrhrads, r-cclrrcirrg its proporti onats a slow growth abeol utc I aker and e x p e n d i t u r e onprocurement, since increasing1 y a 1 arger preportion of its revenidre%were t..eing m e d up adrnini~trstion. What to suppart its Own '3taff and is of interest: to ua i e . h o w rrsrc thc'cunds b e i n g generated tu enable the s o c i e t y to cantinus func.kioning in such a s i t u a t i o n . 'The largely answer is that long t e r m f u n d s of the a+: qovernnisn.? funds? were b e i n g company (made up used pctr pass% w h z ch become?% avi dsrlt f r am at.: anal V ' S ~S Sheet. (See fables 13 & 14). i n respect of short fgr 0-fl th:? term Bal anco While '!'able 17 %how.; the s i t u a t i ~ n working c a p i t a l , T a b l e 14 rndicates t h e Sources & long terms funds and thelr use, From the Carmer it would appear t h a t the warkirtq t a p i t L i l position is v a r y cumfwrtablee current assets exceeding cur-rent. I r istb5 1 i t'f e5 and the cuv-ren-k ratio being overone! almost: throughout t h e p e r i o d . However, it i a e v i d e n t t h a t the r a t i o in t h i s case daea nut i n a i c a t e h i g h l i q i l i d i t y because of t h e existenceaf very non--1l q i i i d , overestimated stacks. The quick r a t i o which indicatcsg more cr?rrect- picture shows a f igure of less than ha1-f -$or recent years. t e r m f inanceand it3 'I'ablc 14, 9j.ver; t h e s a u r c @ S o f long u ~ ii zl a t i on. W e f i n d t h a t ,there is an excess of long t e r m +irbance e x a c t l y e a ~ t a l to the working capital. Hence Img term .Finance; ic b a i n g ~ t m d b t r reve?nuc parposes imp1ying 2 gr~wingdependence n.f the s a l z i e t y on~)ovcrtrmcn.l:Itsans and even mare su m i n c r e a s i r ~ gshare cap1i a1 o a r t i c i p a t i c t n This hes kept t h e c~c?c~E+.~(IY's, From the abuvc srciety is i n . ir cJebt/equityratio low anzl ysi:~ ane can increase in percentage of 1 salras. wbsot-bed - l a s s then one. v i s u a l ise t h e dilemma the its pt-~curementactivity without Any fncreasc in guaranteed by t h e government. by w a ~ r l d immerdietely r a i s e the with the procurement which csmmittedexpendi tures on ostahl. i rhmerrtand administrati on tgrowlr\u year) wauld r e s u l t irr incres9i~g losses. each Wenrc the erpent nate5sity to puskt up sales, and identiqy ather sources of Cunds. the questian is why are ecgfablishfnent chargesgro~i(?ga t such r h i ~ h r a t e ? T h i s , 5.f argmisstian appears t n we Jaok at t h e have b e e n staf*ing pattern i n the grawing due to the tendsncy tmrrds a topha,avy burewitceatic strcrcture i n t h e o r g a r r i r a t i o i ~Srclm the marly eightis5 p r e c i s e l y at: t h e t i m e when t h e rate i n sales decelerated. Let u.5 l o o k at: Tabla l r a+ grawtn which gives us a time series on t h e staff p a t t e r n anclgrawth in Wantax from 19-73-74 In termsaf actual numbers there cmllated from theAnncta1 Reports. appears t o be a c l i y h t deceleration in growth, strength of 380), the number increased ta 480 Framat?out a %%a++ r n L986-87 and t i w n declined t o same extent, h ~ w e v e rsame tategaries (Si.t.ter, c u t t i n y master, garment manager) arcs now included sm the fall in numbers. may b e minimal. i n s i s t e r concerns and However, what is imwdiately gtriking from the t a b l e is t h a t f r o m 19817-82, t h e tap quarter of the chert s t a r t s filling LIP. 43 While i r ? the esrly seventies; tharewau a FLniince O.F.Ei cer-Cum-Sser'eta~y,+rom t h o ear2 y Manager, and a F l ~ ~ n c i akssigtant. l there is a Finance eighties Similarly, t h e Chip+ Marketinq O f f i c a r a f the seventies isrr~laccd by a w t i t l l e team - Marketing Deputy Finance rlanagsr' Cgeneral) and a (trrsrVrniea: ) Assistant, Clffi.cer is which Mansgut-. D e p u t y Mark:et.ing kanager, e n v i s a g e d to M a r k e t l n q Manager-. (on Drtputatiur: In #imam t h e it Deptcty Marketinq Manager f il.!.ed up be 1987--8Bt h e 90017 p t s t a* Gepartmen-t 04 and an ~ 6 e ca1 i 1ndr.rstrieri) war filled up, the ncec! +orwhictt is n o t very c l e a r , ~ i n z e * r , h 9iv.ector e is of Handlooms - already on t h e t h e c r e a t i t n o f new With 30ard. top, tttc l o q i ~aC increase in t h e lower po%ts/upgradation a t . t h e catcgat-ies ha.s a l s o to he leulir>ucd thrcrugh g i v e n the 'Slue print' approach of structure. o+.fitial torsperativcs Hcntc theye Tcck~nlcal Supervisors arid numbered 36 i n 1970-79). the way down ta drivers aye .Far 28-12 senior almost 'YE kn a d d i t i o n and i a s t UDC c3.f. r o r - g a n i s a t i anal S~ipcrinkendents, 11 (the! l a t t e r and L9CI n m b e r s zakes The largest grade w c w k e r s . numbers employed areas Depot l'lar~aqcrs.-. G r a d e il a r ~ d I!. have b e e n ~tsc;i.ful i f the anneal r c p a r t had break up between g r a d e I and I t does appear p l a c e all It would cuntirt~redto give t h t (unlesr its abolished) s i n c e t h e r e to be a terldency at:. times (as i n 1981-32) #or large s c a l e tipgradation u# grade XI ~ a n a q k r s t aGrade I . have occurred aqain - It appears t o very- recun.t'Ly b u t cannot be shown becauss a+ t h e absence o4 a breakup. W e havenot, been a b l e to sti.idy t h e p r o p u r r i o n oG total salary b i l l arcocrnted for b y the cii-F.fer-en?. levels a+ s t a f f 44 a5 a l s o the changra in paysales over time which would haveadded to the costs, 8ur intention here mxprmsion of the intre!aSe i n was to merely indicate arganisat:ion, which in t h e t h e volume 04 bureaucratic the absence uf a business has c r e a t e d rapid large? committed cm~ts. From the above, t h e urqancy to increase sales i n a s i t u a t i o n ef growing overheads, irjithcrut resorting to a qctrther reduction in In the ~ollowinqsection we praturement, comes out very s h a r p l y . examine the marketing netwark and if i e l d Houses;) v i s i t to almost in the owlicy of Hantex, scrppcrrted by a l l thc s a l e s depots (now termed Trivandrtcm region, to understand Ha~tet: passible cmrtraints i n eb+ecting e quantum increase i n sales. Bcctibn 5 P ! ! U - c a - t .9i~ 5 . From t h e s u c i e t y i s in. r above a n a l y s i s cne prcentaga of dilemma t h e Any increase in its procurement a c t i v i t y w i t h ~ u t i rtcreane r n guaranteed can visualise t h e sales sales, absnrbed by immedi ate1y raise wcruld pro~urement which with the thr! committed expenditures onestabl i shment and administration (growj.ng each yeerr) would rasubt i r i i n c r e a n i n g ) n&cssity I ~ s s e s . Hence t h e urgent ta 'push up sales, and rdsntif y other sources of Sunds. Hence, a ma~orpolicy conclusion that emerges is the need f o r c v o ~ v i n ga dynamicmarketi ng pol icy which i 5 +caeiblcand pregmsti c and does not: at t h e same! t i m e , First, of averriding sdd substankially tu costs. imuartance i the clearance o+ accumulated stack:+. However, beCorci? it is done, there is need t o physically which would also g i v e us a f i r m i d e a af what, verify kJ: percentage o f t h e s t o c k is l a s t moving av' s l o w muvin$, a neca.ssary piece c?f ir!facrnati@n *or rnerket, a n a l y s i s . Second, arrd an ' esser!ti ai pf c requi s i ?; f ~ r - s y c ; h ~ . a ~ $ ~-, ~ , !p. g~ ~ sa_Jq,.: ape. . .stnsa1.qc,, 'S.-e&l an ' &nnual.l.y; .- of -..he. :ammtnt .pra.e~\.r.e.d., - .-"j n ". t~ . phy'&kai-'t&+h).by i t & r e n i l i ~ r i e f y j~ ~ ~ r l t ; w o ~ 4..: l.is .-.~ , . ~ ~ , e ( ' ..t.Jh e,..*..;n+t~,qc :, . ' , b'f 'an''ex . , p w s t , mk?K&t' surv&t .an:. current kr-ends,,. ,Same khijulb"kl:&b b e .rdll e c t e d : !on prices . items. lrfe -haw rmii ..).-7 inf.0rma.tion o f broad? y . . c.amparab!,p.,.lp,iJ1 to t-he .cure camponant of thi,5 PO$i -C.y- .. -v i ~ . ~ ~ L p ~ ~ d u cde%ign t and d i v e r niS:,,cc>t.t;itzn ~ e l l whxch with ,Seed back on market trends based lar-q~?.Ly 0 ' 1 ' the abave data cul l rlted, wauld relentless1 y b e tfyj.ngout new d e s i g n s , p a t t e r n s and products. On: the basirii a+ this Hante:twould prepare an ex -ante production-curn- sales p l a n which wcrctld saci etiss. p a t t e r n of the d e t e r m i n e t h e praductian There is endless scope f u r creation of deinand area a4 c l a t h in t h e cac~sumptior~ ir! oarticular o f Saris which should be fully e x p l o i t e d . We recommend a gradual d l verui f i c a t i anwhich does n e t a l t e r the character af )<erala handlooms and i5 adaptable to the rhythm of handlaom praduction, b e aveduclion To start w i t h there ~h-~.crM -in the production a+.d h o t i s production of s a r i s . and a shift towitr'cls the Saris h a i d a large p o t e n t i a l , (but ngt. at the p r l c r s now baing C i x e d f o r them). Evidence f r o m o t h e r s t a t e s such a CIndhra Pr-adesh greater buoyancy in and West Pengal, t h e handloom ~ h e c rthere ~ is r e I a t i v @ l y sector, indicate?= that saris con?stitute almost: 31 percent and 36 percent r,..i t o t a l praduction rmspactively; wtrlie 9r! Meraia it i s 6 percent and t h m proportian m i dhotis is a b ~ i i t30 pcrccnt. the %ale of sheets ' increasing There is p o t e n t i a l f o r Even and f~trnishirrgr;, in the case o+ traditional i terns dssi gr-, chanoi.-.zrould substantial l y improve sales; for instance i n - the d h ~ t i sz; rzvc ~ u r etold in many depots - the unattractivebraad one ccllbured ' kava' cauld b e easd 1 y replaced by r thin designed 1i r l e (su cuinmarrly seer? i n mi 1 3 dhutis) D i v e r s i f i c a t i ~ r ?itself i s not s u . f C i c i c n t thrsccond i m p o r t a n t = > I e n ~ n f04 : tLheprr;lyramme. r r r i s or more st'leets icj i ~ o t&at w e cnvIsage . - p r ~ d u c tdesign is ;lust producing marc - new varieties w i t h new dcsigns.patterns and, ca?.cjc-ir catiibtnatians, which are attracti vn w i l l be s a l e a b l e . Tha Har-!tex Process Hause c?.t Bt;l ararnapuram wottld have t o alay an intplsrtar~tr iil-s artd should also he s t r ~ n ~ t h n n e t d . , . This has to be &cc~mpa!liedb), mf a l l the depots in need D.F th~sughadvcrtisenentsi in a massive rsnovatlon pvagrammc i t and a wide p c r b l i c i t y campaign the media, and even at t h e level 0.f. depatsby providing good d i spl,ay yl assspace ' (1 acking i r t most) r.rnall notice new items.' hoard to be put the , and autsicjs announcing t h e a r r i v a l a4 The advantsqes af goad salc?;warnan/man s h i p , tadroj tl y turmurdfng the custatiler net to l e a v e the shop w i thwut making some purchase) should be emphasisacl. There is a general 3mpres;sian ab@ut the lackc& i n t e r ~ ~ t ; e n t t i u s i a s mamartg t h e sales s t a f f of a l l qmvrrnmmt straps urrX i k c in p r i v a t e shops. be rm&@d. Occasi unn'l discussions T h i 3 impression shoceld with depot ma.naper.s for # ? i ~ i o nand ~ suggestf nns waul d creaks move. 9nthus.ias9 and a sense & involvement and cammit..mcnt by all cancernrd i n promoting t h e However a very important aspect o f t h e scheme is the ability to carry f t out without: sharper increases irr prices. Cantralliny the p r i c e and quality of yarnset?ms t n be at l e a s t one wayof dairy it; the other is to keep Hantex ' an a check is suppc?%edto dif9erontfal) margin which averaaE ccver its :.and ~verhead~i. aim at. providing 50 percent 0.f Hantex should in t h e long run th? yarn required by t h e coaperntivc societies and buy back t h e clotb produced according to i t s plans. A s + a r as keeping a control on averheads is ccclcerncd, which makes i t s own demands or\ resources a v a i l a b l e , we feel t h a t the organisation has to c a r e f u . l l y a9sess increases incor;trii w i t h every step it takes and minimisc it., p a r t i c u l w r l y erstab'i ishmentcharc~es, 4s stat'ed earlier, we have n o t made any swqgestions r e g a r d i n g a complete restructuring crS'the o r q a n i t s a t i o n . Howevsr, a n a r e a where costs can be refitrainad is opening af new d e ~ c t s l s h u urooms. ~ whale $ ~ c u s of attention shotild to production infrastructure 0-f shift f r o m bttilding The up marc? attractive, good q u a l i t y it-, bath new and tradit3onal at campetitivc prices. A n important implication the whale question of the of bur atudv is t h e n e e d to revim i n - t e r n e l .arganisatiort o+ .. af f i e i a l cooperatives,so as to mal~cthem less rigici and mare responsive t e producers pertinent i n and consumers ' an economy industrial sector l i ke important role to p l q y . needs. T h l s be+comcs particularly chslractarissd by .a large Kersl a , where cooperatives tcaditidnll will have an CThis paper borrows hcavil y from a r e p o r t erstwhile government a+ Ker'a1.a. f ;l prepared f o r the ~ w i \ Z d like to thank all those. i n Hantex , Div-sctorate af Handloocs, Kcrnla Textile Corporation, mnnaqele.s 0 . F aZL depots in Trivandrum r q f o n 'and o f f ice bearer+ af Ncyyattinkara I v i s i t e d , nothave been passfblr. a ,few State M S W V B ~ ~cooperakites ' wi thaut whose !help t h i s study in would Ttrzfika araduo to Rantan Vcrhadevan for h i s comments onafi ear1 Fer d r z i t : ta G. Narayana and Fynrclai internal semi ear. T wo:~Iti 1i 0r-k L.--LLc rmderad by Prof .R.S. + t i in + Y\ Jaynkumar -for hisrctsear?.;?,sssl st.avza. Sobhana and Ma. Thanks are due to Ms. Ftadhetaani .Foi. fsatiently typing3 rev -r : .- i l v y cc-~ccr$ti-,ej 2iztrict ------.--------....--- ---- ;J-:.O LG-X ; +.erala ;t.iLc -------------.-. !r;tii %st .-LN:..c: ---? 8t. ; I ~ W C%a~:!i;i S Y\I PBNL. 3ili i ; ~ i i ! t S h h f ~ r ~i ~! . ----------------. - ----------------------------"------------.----.-------..-----------_ L ?a?t:rr L: n Srn~t_~ ~f. the ~ ~ - 0 3 e r a t i Sactot ~e . ^---_-___-*-L'__---------------'---------------------------------- So-c.oer.ii3ive PrrC:,ctitiii Yecr * pr.,- 2 - 54 Value ..,, -,-," ,---.. . ..---..-. -..----....,- , , , , , ..- ., 419 : $ i s2s $1 SP SSt;Z* :9t9-70 1'372.-71 1371-?2 423 1973-76 4az 5 5 ; ..62 451.24 63k. 72 637.47 ??T. 32 1~7i-yf 1975-fb t ~2 99;. 3'; 4.j~ 4:;~ +, 2 48 -"; 5 ri 54$ 547 c, L-1 7, n' 7 423 42; 4:2 - lci7e-rc 1979-SE 'r76@-8L !$el-52 t$82-83 1?5.1-64 0 ' 2.3 r J iCh'4-85 t 985 -86 1986-FJ7 1707-58 545 538 593 -390 1980-8'1 592 -----.-..------_-- --._---- ,.. 481. ?ib 197s-77 !?37-,71! Qaanti t.y , , , , , , , , , 1966-47 19&7-63 l?b5-.b? :ff2-7; C l o t h bv Co-worta(ves --"'"-"'-""""'---------- : oB-..!?% 679.3s b8Y. @a =6aS 1264,7? 1293.82 1 bh3.53 jC;?1.4.3 2384;. 38 52t3.Ci 3!45.18 ;25&. '75 8192.92 ----,-,---r..---- . 423 29 379,4! *>?a. 39 -9 3;74,6? 585.6'1 ;55?,48 3:35,92 351. !4 295.06 270.00. 219.30 !?f P.J # a t s . aa 21C.67 2?2,82 225,39 242.47 !;24! CfSZf 295.P4 <574! 38l3.88 (4851 ;ZS, 5 5 5BBs 16 552.23 509.10 --..- --.----...--..------------------------- Saurcet Oirector a+ HendSonms, V i L a s Bhavm, Tri vandrum' Note5 : V a l u e I n Lakhc R ~ : p a ~ s , * I2gC)* :J85) Quantity i n Laehs !=!etres. F i g u r e s ir! b r a c ~ s t sa r i as g i v e n ' b y the Circctorate Q$ Hani!looms e a r l i e r , ...------*-----------------_-------_-----------------.------------------------------------ Total tl?*.>ertx fro: Coi i 3: P Frclc Salhs kt W e h ' ~ Sales Stack5 SK whict, % Co1 3 SY hent as % of t k ~ g has % of of Yrn of Y m of Cloth Frx 8?t Prod !!ant Tot Sales Ye+ CO-OD --------11-------------------------1-.---------------- lW7 1Y74 ;968-6? 1%9-Xi 1vrc: :?l-7 .. iq;').?? , 1,737L lqib-75 ! 639 616 6:6 296 37 1C 620 3132 37 423 628 6S! 46: hC? 5 37 2% ?,?5 662 6 1cn-2 6 2 ?28 1373-79 684 X3 1)Afl 516 !';5-76 19%-Y 535 !35 1380-81 516 IOEl-92 567 E: : 213 $ 2 - 551 I ! 565 1 - 565 3% 366 571 372 30 1985-85 530 lP&-;rb? 1957-1! 11919 520 5S0 3!2 592 $!: k ~ t Sen : s M e 55.26 5?.15 i7.69 1 lt.10 15.8 57.1@ 73.66 4 93.9: .?LC2 il.jh 52.33 56.66 663.52 '2.54 129.43 !q.tC If2 1 9 3.:: 169.05 1?.5r3 22.3 25.29 2Y i;i 22 2:7 261 2 232 2:.; ?6!. 274 2: 2% 24 !:g 86.31 ue.3 35.23 S.22 4i.bO 52.93 81.60 63.E 5!.Ob P1.93 2f7.5: 22.3 253.67 2.35 32G.:1 51.66 ' 55.8; 221.3 206.60 6 666.67 132.9 166.?5 7?.3 C9.Ob 155.37 155.19 72-62 3 0 . 5 ; L2.E 152.26 9 ?50.5b Z6.9 36.16 71.95 71.52 . 27.20 195.67 273.1C 143.39 13.C7 19.5i 25i.20 5T.69 66.36 5 1 1 . 3 10.59 516.13 17.51 656.3s 35.10 6X.F 77.55 749.59 65.00 791.62 7 5 , s m,:& (9.x f6S.T 7 . 650.96 28.n ?23,!4 2.2'1 g 0 . W 79;.5? iJ.05 651.3 . f1!.13 75.45 ?::,43 24.3 565.14 5!.ij 717.36 2 . 1 3 a3.13 50.5: g3.6(. 15.x $59.79 %.QJ 150.57 3:.kC! ?12.&7 156.i0 ?!$.x i3.C n!.!:, 236.56 65.36 55.?@ 3S.M! 3.F 26.69 17.C3 ?!.I11 23.3 232.13 260.26 !.%.,R 253.63 227.58 2f7.58 :69.16 21?.87 i39.G 139.M ?6.:i -27.72 73.13 26.25 1bS.C 33.91 --_----_________-------------------------------------------------------------1 D i i ~ t c rnf Hj~dlocdtr.Vibas h e m . Trivsndrm. ?7.69 67.95 56.18 9.81 54.58 S.27 111.57 91.12 46.N 165.61 194.29 27b.S 138.18 468.7! 5'2.?6 596.33 623.65 630.01 %l.lZ 323.0! 970.63 T6k 4: Ptrcentage Dist; i t h c n of Fccr~u;ement '/t~l znion E!,! Q.W l'v' ;C!G - Regicn ;rise PlM KSH riKD CAM ----------------------------------.--------------s o t ~ ; M!U? ccrvs WI!IJ? %fie: Sae 6s T&le 1. - Mtc : TVR Trivandt-:nBfl SKY~ ~slue S.;C.Y~ value - r ) ~ l KTfR i ~ - Kattwam O(n WYS mlw - Emakula SCCYS - v81ue sxvs~ l o d e wvs TiHR T r i c h ~ ~lvc :able 5; Eatiaatei P r a t e r e ~ e n ta+ C l o t h b y Hantex f ri Pu=sLi t a t i v u T s a s --..--.-.---I.. Year ..----"-.-.----- ? r o c by Kaktez i i : iriiu~! 8 s . i n IdtSc: .i,p9i;cit . --..-.-..I--C-""I-L-.. Price ---.I----- Proc b y venten i n Buantitv ( i n l j k h nstres) Ilis.in lakhsl ?tblc 7: Ammi Absalute Chsl7t in Frocwement - Rvion Uix ...................................... Yezd Wl Q-N KM EM W R W , ~ -------------------------KOZtKD W-------Total va~Les@cvs miue velw value mvvol~ veiue value ~slue ....................... ---------------Icitj7 S K YM~~ W~ Y S WYS SKY~ WVJ ;MY~ SOCYS 1965-66 1754-67 10 li .35 1'363-6c [email protected] 1959-70 -9 -?.65 2 5% 6 9 4 -6 2.29 -3 6.6 167:-72 11 2!.51 2 3.79 2 -2.53 1572-73 -15 -7.S 622.G; 110.27 ,-63.53 197% 197G75 0 21.4! 5 5.!6 2 2.75 1075-76 2-9.65 !I-&.% 1-7-21 1976-77 1. 59.01 -1 r.34 0 2.54 1377-7; -1 0.2? 0 1 2 . ltT3-79 C; 5 D . h -1 -1.2 -1 1.23 la;'?-80 685.96 2lQ.30 ? 3.41 !?P%tl 17 39.46 O 9.75 -1 i.?? 1921-22 9 32.2 -2 3.N 1 -0.46 1982-8 13 3 . 9 -2 11.6? -1 2.37 1°93-66 3 -8.90 0 -9.91 1. -1.90 198;-35 6 *fiw* -1 6.45 -1 3.5 1935-~,5 4.12 1i.n 0.35 1936-8' I 7 2.35 -1Q 4.N - 1 5 % 1997-80 3 9 . N !n"*'* ? ?$.::053-t9 -1 """" h . 1 6 1- 5 . 1 1.30 ? 6.33 -:9 -!2.22 -2 0.25 ! -0.m -1 1.16 , 4 2.52 15 7.71 4 3 -1?.42 !5 15.16 25 25.2L 5 1.41 27 i . 7 9 27 5.57 26 4-05 2 2.32 -2 L.6! -5 6.N 3 2.5: 2 62.93 0 4.S! 1 -?.%? -6 4.?3 -2 -4.54 -17 -17.P7 520.99 C11.67 -3 G.60 4-3.4E -2 57.49 -1 13.50 26 50.75 12 I:.$& 2 1.30 3 -1.!9 7 1 14.20 20 -32.13 i4.61 -1 -7.35 10.99 3 1.m 0 6.72 1 77.73 2 1.5 O1 . -1 1.69 4 1.22 C-2.52 2 1.66 -3 9.96 -3 L.lr 12 7.53 ? 17.21 -1 -2.22 1 2.53 -3 1Z.13 1 :.!5 -;n) -6.q -24 59.94 016.3 -1 4.36 1 0 10.6' 517.20 12 161.15 o 3.24 1 2.57 -3 13.45 1 21.92 12 U.59 SC 152.65 3 5.75 0 4 . -1 9.13 -1 11.69 -2 27.46 L 65.8 O 11.62 b 3.M i 6.27 F 3.23 -3 *xaxt' S 20.S C *""' F 4.41 -1 1 1' -23.56 -0 "'"" 4 3-.I6 ? 3.95 0 -3.i-1.61 -2 6.73 -2 iS.46 3 -10.66 t11Rat 2-72 x*xfXl 15.95 21.57 26.79 6 16.15 -55 !9.b -3 17.75 11 116.61 1 29.3 1 9.57 2 10 44.54 B 4.27 2 4 3 2 -i.E 0 -4.5? 5 ""*' ? 11.72 (3 """ 1 -?3.% 9 2.26 -1 3.75 , Ila. *OR b ;oi rii D 4 o c i v aroiit ZQ. o! Copczr st;.iic?@Ititi t si bar i?ib-E: t5 *t;.tnq loss ,*-a .rri-3? t s 1?5f-FO ,--I) . - - - - ..---- .--I:$:-% . - 1. ?ri~&lu 24 .re.. -.. r---. .-------..--..- . .. *-.L--..-U------------------ iT?.Sj iE 2 +f . :m~u (%.I? .. 1?' lies IJ r B ;la: .* .A t2i8?! ,35,?, b. ?ii#iai :. iT 7, i .) ... a %nux,i I??.;! J 1.n A& -. 15.: - :a0 3 ili.51 ., i1.Z 9,; t 132.2; -------.------.---.---.------------------------------------------.. -. :?i 3;:. ; 43 1afl.C - ;a.;t . I :&*ti -z3ti::: 3.4 .,..t! $.tee. Tr!d J ,*s . & a - ;268& 141. :i khiW~ 9.Z 4 rJ.5 * at : LC na 15,; I :)+.31. X lrirhv 9.5 1 (13,8! (4% 1; c, w u 26.7 7 it. S 3.4; S. 2a.9 5 2.0 ':hA 2. 61lrt Si t af all snots utraq 4 vclr i05n . lo. a( &pats . t z O ~ ~ - - : ~ ~ ~ - ~ S H a llietm 8 ~ ~ M9 tilii 5 w 3 1 . kt: :F:gmrs i n Srrcrri i r e ss gr3jcr:ror t o scisi t r r k = = L = ~ w ~ = drw!s is ircg;r.n. T ~ a ~ ~ - - - - - - ~ - 1995 to 1990. --.----------------------!in Rs.? Tabie 10: P r m t and 9l!ira R i m of Hanter - - - _ _ _ _ _ _ _ - - - I - - - - Varietv 1995 SP sp 1989 1998 1987 !%6 PF 13 '% PP 9' 3 SP Fi 57.m (13.51 67.60 72.m li7.51 60.70 86.m I!5.5! 70.00 61.10 50.90 79.60 19.51 66.46 95.a 79.32 %.GO X.06 9 F; SF P %,Dl 76.S (14.21 tG.1' ------------------_---------------__lf M l e Vaishtv . 100s 65.90 37.80 50.3 41.75 .(ft.S\ b8.R lfund~Sct double 1@Os 6l& Sirale ?b.N Vsishtt 2/10 n. a Furnishim 57;60 !25.?1 68.10 U.@O 26.00 ?1.?b 40.00 ' (5.91 ia. 3; 29.02 (7.71 n. s n. a 23.38 ,,,,,,,,,,,-,,------~-=~=~----,--~Z=rZ~C==u-----..------------ Source: lientex k o r d s - - 9 Selling Rice 2. FP w m t #ice 3. n.8 not wsilsblc 4, F i m s in bracket ' d e r SF refer to anmml chmtse in SF. It was same for Pi. In 190 the change i n R is different md these f i w s are giver, in h k c t urdw PP 1990. .Notes : 1. - (23.61 35.50 38.8 3!,90 (6.11 n.8 60.00 (9.6) --- -- (19.3) n.a 108.M) 8R.W (15.6) (11.ti 10.00 $,f fh.&, t0J 43.00 (7.3) M --t- ________ ------------.------ ____ _ _ 1 w - f 9 i09i-85 lax-?: l:EY--;-W _ _ _ _ l _ - ~ ~ - _ .- .____---_______..--------I%!-!$ i?d?-3L 19Z-i3 193:-52 13.V-31 l - _ - - - ~ - ~ - - - - - ~ i?P-!@ 1976-3 - ~ ~ ~ LCHL?;?jic.L.q: ---.---..-k! ;.7:e r' tt?! hlnc~ .,.iCl tx!s::J y.52 - 3 . 3 5 39.57 25!.!3 5%,?a i75.14 at.$! !*3.23 6.55 I?.!J ii..!: 312.65 693.62 337.;9 S3.13 31J.'17 247.9 32.45 115.32 2i9.51 623.5i F7.27 33.97 37G.3 3t6.Y 27;.6! 25.95 9 ?V.CO 259.54 72.23 20!.24 219.40 hlrti~l%?ICS: . - _ -16.S4 -15.53 -9.9i -8.25 -9.iQ 1.?3 5.3 C.S2 5.E; . 9.95 1.02 !.JTBI! %ti3 1.15 1.15 :.li 1.26 i.23 1 1.35 .L C.LL 9.33 0.62 !I.* 2.5 ? 8.t: 0.83 5. "!t b f i t ?,,lo '1 -3.13 4.e3 -iL.:t -2.72 -2.5; -2.9f C33 b. 1;:31:. ? m nRatio ?.63 3 , 3.61 3 5.3 :.?? 3 . I. !5,% .:::tk~~hoidrp lo I m t h s 3.c: 3.6:. 2.s 2.5; %.:I 6 . 3.2 l.Z.1!:Afh?.taCC/OSbsl.% 9.62 3.31 :I.JC . 19.32 11.M 11.4.~ :.Isl. 4 knk CIX to L m3 7.12 5 . i.40 7 . 3.1 2.r: !b.i::::+*ikltihsldu!r.H.bi 12.1s :1.32 5.73 7.g ? . ~ 5 6.25 6.!5 . , .. !i.:?:.::~.!.':t&4 i d t i 3, 3.75 ?.3i 5 l.:r . . ~ i i.iS 1.75 . , , , , , , , , , .,,,_-_-,,,,_, ,-_,. .,,,..,- - ., ... ..,,----,-.---,-,-----=ZZ==r---j.R41: ?.k2:X:v -9.51 0.73 -- I - - -4.16 1.11 1.66 5.63 -1.23 3.2: 2.95 I:.@ 7.61 .5.$ 2.0% - -3.U 0.91 O.16 O.7 1.99 0.65 !.R 6-59 C.25 1.67 1.G O.?1 0.83 -1.50 3.2? 1.95 1 7.23 5.3 2.22 - "0.m 2.33 i.ei 1D.76 6.7: 6.Ql %."6.2 2.65 1.N 11.37 7.10 6.45 - - - - - - - ---Sales (Ykf ~ F C X ? 1:~.in stock of fin. wodsikii 071 12.01;1 900 105.U15 1122 !tClSm !:I6 !fl?.Kfi: 10: l E . 3 loti iX.GL= 113'2 lX.!Xl ? T.66: 9 P.?% ? 0.72% 1: 1.?t,% 3 2.C?t 3 C.22: l! P.o6% 53 . f.2 i.O? 16 1.Ej'c 4 4 . 6 5 12: 12.33 i23 -11.2.6t 9 : . . 551 1) 6 1 31 !. 539 n ------------------------------~-------------.---------------- 19?2 106.?0% li6f llC.22t 1263 111.96% 1154 l(16.m1102 165.6fS lCf? lbl.E!% 1238 1W.:6% _-------------------_-~---~-_----_-___-___1--_---- -1 2 -4 , - -4.; 3 , - 7 - 1 -2.3 1 3 -7 i. ------___----____________~-~-~----~---~-__-_-_-_-_______._-~__--------~----- t'e t Lor s 1------1---------1----_-~-~---~---~---~-______^____1____^___________._______-____-___-_-___-_~~-------- ------ )um,t Assets --.-Y m 1 14.2: 16.22 12.?1 1.01 9.05 10.05 22.05 2-22 9?3.03 SGf.lJ 530.G1 623.46 5?4.:? 572.31 Lba.76 388.15 271.55 wlcrs ?.?I 12.55 i ? 1:.55 5.6 7.?7 7.26 7 . 2.99 1.66 Frakvt.lr?bwl.reb.1 130.9 53.50 93.06 65.73 lk2.Ol 173.76 117.1 90.21 39.72 31.?1 FF~I kt. ibh. 151.11 161.35 I ? .12.62 ! 236.5? !75.9& 213.90 165.35 109.08 78.83 f ~ l E W t . I m ~ t . d i v . , e t c ~ 3 . 0 ~ 25.7e c.tn O.C? 3 . ~ . C O.?J 0.m 0.00 0.m Mvmw P.13 29.21 27.72 10.52 15.33 N.38 20.70 16.36 14.E 8,52 Slosme a w ~ t :57.5: iZ9.55 126.23 103.Lk e 2 . 3 i26.lr 1!3.6? 7?.Y 9 26.35 Rculvablcs 3G.3 21.J9 32.52 3.5.57 31.58 Zi.76 25.19 14.63 6.65 7.02 WK A~srtf IS.$? 15.99 16.54 13.53 lC.17 c.:! 1.k3 1.20 3.77 5.55 .hbtful &ts 3.9@ 0 . 3 0.M 2.M 0.9 I).N 0.25 0.N 0.m 9.M Ilrtd Cwsi!i 5.1L 5.Q; 5.61 5.61 5.6! 5.16 6.57 ?.55 7.93 L8.05 Wltesh 31.F 21.22 12.29 19..37 26.54 5.3 i.29 1.32 11.3fl 12.95 !.I2 9TO.U Cltlh ---------------------------------------------------------------------- Tctrl C A !I1 15N.X 162.43 12!4.2"Lllh2.5$ !1%.57 6.45 196.8 0.81 7.57 67.57 c.00 0.62 17.29 8.9h 23.29 0.00 R.09 21.16 86!.?1 656.66 516,32 119.31 1.9 i67.66 27.3 3.76 1.56 5iS.g~ 648.76 3i1.76 113.15 53.68 27.59 ?3.52 30.37 23.13 1.38 1.SS 256.87 202.88 60.56 19.62 17.s 1.85 176.56 YJ.15 tU6.M 596.92 429.39 308.85 2Sb.49 1!76.9L 1091.50 ------------------------------------------------------- Llrmt lisbiiitie? ------- 3 r d ~Cnditors 4 8 Utbr Liabilities !ottmt dn h i t 3 kSr !offwino C a OD 506.17 i01.93 25.16 6n.50 :3!.29 1?2.91 1.26 L.36 713.63 697.91 S8.6; 261.55 2C1.61 56.32 51.3 ?9.82 115.43 18.31 101.1: k.21 3.76 3.12 5bZ.17 693.Z 9C.79 256.86 62.45 87.16 2.21 250.63 Z2.89 72.Q - ----------------------------..------------------ kttl a 1111 1377.20 12E7.M [email protected] 923.11 975.59 --II.-----------I--------------------------------------- ktUUklwCaoit8l (I-II\ :-z:., 213.m 153.23 133.22 219.8? 221.25. 273.517 251,M 2M.m 227.25 207.16 16h.52 I------,r;~r::~-z=::======:~---~~~-==r:~~~z~:z=:~~z=:::z~~z==~::=~~z Tablr !6: SALANCE X E T ANALYSIS (IIi -----------.---------------_--_ -.. -_-___ -..-Rskdh --1958-59 ASSETS -Fixed Asjets I~st~ts carry f o ~ l r dLOSS Total kstts iHii 1987-3: 156.: !3.% 6 . 4.22 312.77 2t1.23 673.86 415.66 --- 1'396-67 1955-% 198.5-Pj 198-84 /982-E3 1981-82 1@0-81 1979-80 126.43 H!!-lc C _ _ _ 117.51 111.85 66.27 4 3.97 3.76 3.76 231.33 361.75 168.71 lbo.76 X1.M 136.52 252.17 36.M ?35.58 -26.53 63.16 3.S 57.5? 2.36 52.64 2.36 61.50 %.3@ 179.75 81.26 167.u 166.7: 203.55 197.34 123.23 [email protected]& 156.69 1.31 22.25 9 , 52.9 1t.37 43.6 197.06 187.63 E?.% 473.65 !E7,63 453.55 85.00 50.54 U.U 2.36 !.E 66.06 &ti. 95.96 %,h, Finsnced by: , Shsn-halders' funds -------------- Psih jhcn Csital 361.96 139.9: lt6,i. i.31 12.!C. 35.Z 1.X 9.3 3.S 11).10 35.42 2S.H R e m: R ~ s . fvld E &ID. ES. Gratuity fund Otb?m *cd Lms 1.3 1.31 1.35 25.9 27.35 M.86 28.ie 59.36 . 1.31 26.00 i.31 3 15.69 4 . 1.31 12.57 3-27 1.31 12.17 S3.W 187.63 609.82 323.55 --- @A. of Kerale Total L1 f i m lIVl Excess of 1T f i m n c t O W bets ( I V III! ------- - 218.2 218,:; 686.36 568.69 217,Ob 565.00 197:63 6:Z.S 115.72 IN.? 2!3.@0 153.2 t86.Z 219.$8 221.2 ?73.?0 236.79 36.m 2??.25 207.45 :bl.t? -------=------------------------------=----.-----------------------------,----------,,,,,-,,-----------,------------A ------- ,,,,,".----,,,,,,--- SLCS aut vth sue drlver rl . ar2 61 a 2011 191 194 1711 171 1611 1511 11 * 9 9 13 1: 13 10 :2 3 6 5 3 3 5 1 1 1 2 2 1 35 9 11 1 1 1 2 1 ! 11 1 1 11 1 3 w 1 1 1 11 1 1 1 ! 27 ? 1 : 26 1 1 1 ! 1 1 1 25? 1 1 1 16? 9 1 1 1 1 1 1 1 19? 21 1 1 1 1 1 1 l b i h 466 (625 4BO 162 f6n 1609 1 9 i ! 7! ---------------------------------------------------l SCC ~ ~ 3 r d ---- Totnl Sanstiontd ie ? dahcdar attender 1s uorker c m t u fitter c l i t t h Inasttr ~armcnt mgr 71 1 37@ 376 1660 i459) 235 3% (517) 372 rsn 6 3 s is29 41: sud 456 ~6 sj2 W r6ul --------------------------------------------------------------------[sko <a $ewetax F i m Officer c u $ ~ ~ t a d ,r Cnlef ~ nar3;etiMGffim + Accumts Officer E l , Eegiml kketing Oitic $ Technical Assist :: Ce5SM1 D?wt l'kmlerlbmot I m t o r s I Sales Assistant : Uatchan ? include uatchm Notes md Refmmcs: 1. In 1976-77, wsts smtimed wm regional arketing essistant(31. ptl 2. Nas a wst of Exct ?%notion Offic?rs. - assistant(?). accouotant(1). ~ J O administrative officer Key: fa - ! ! m e wager n - rarketing mmw na RW r?simsl m f a - f i m i a l assistmt dm asst atainistmtive assistcmt ww: 0:fr - munwnt oftictech gffr - techrllcal cfficefsctv suotd fstorv wwrintendcnt CeD w & ~ o tmanaaeveh :up - vehicle suoavisw - - - . - Imerdil; 3: SLYNARY CF A F i i t LOSS ACC@NTS -------------------------------------------------------------------------------------------19V-dQ 1'937-96 l?16-57 1935-26 i386-85 la?!-36 la!?-M 1951-92 1980-91 i979-80 ----------------------------------------------------------------------------------------------- C Rs. hakhs !T6-79 IYIIL: . .- Sl!! , :U& !n#, ;r.in $to& $fin. 9o06kiF. 973.56 i3.3 65.26 QS.26 112!.44 1116.09 1M2.09 lCK6.R 1!32.27 1N.6D '20.15 6.32 8.83 7.63 2.51 10.8 110.13 Q16.61 736.87 6.19 6.63 551.56 6.57 2 % ig.53 1Fl.H 30.Y 1253.42 :i~l.lO 1101.t3 11M2.96 1237.99 1164.18 102i.29 239.lt 5338.72 !25.16 59.18 51.55 15.05 96.9 35.65 -----------------------------------------------1031.52 116:.?2 ------------------------------------~---------------------rr)lflW: -- tmia Osgcs WWe Llria, YaOcs tte. h..d#rr. Em. haislwc, Id. I bk chsm kmciction 62.75 76?.35 !07.7: 1 5.32 69.5! 45.21 5i.S 5S7.55 i?t6.;3 133.54 %.7t 25.96 75.3; 3.N 5.6 SE.53 56.2? J.SC 6.9 3c.N 33.39 BX.94 962.;? 77.!? 72.4 2.G 5.M 9.a 52.63 5.g 50.72 &.?I:. 12.25 65.!5 867.00 lf16.1,9 M.52 55.50 56.45 6 . 56.66 6.t? 5!.1? 3 . 59.86 j.22 15.26 39'3.59 66.2? r7.91 1.15 61.33 3.35 15.?2 13.16. 4 . 2 S!e 33 ?37.?0 5!1.X k1.7i 3.E9 51.25 62.3C 23.69 22.9 1.N 27.X 2.35 S'.l 2 !.EO . 6.2 XO.:! ?.?O E36.S 595.W t.59 -------------------------------------------Z.30 !OQ.Sl 1199.F !311.98 l?l;.64 1!21.6: IN&.19 1236.25' 1157.65 1C21.95 -----------------------------------------------------------------------------------------WCt L@5I f ~ th! r YW -31.63 -67.95 -6i.w [email protected] - 3 . 2 4 -?fi.;3 -;:!.3! -1bi.X -1%. ji -103.71 R.hw adj. for tk ~ e e s -2.Ca -16.03 -1.73 * C~TY fw1 3 s -31.22 -81.26 2.77 5.76 -15.30 -&5.3? - 1 . -!? 2? -C5.% 0.66 -95.N -Jl.Xl 6.1: 5.15 -?.I! -6Z.G -'.F6 -55.6% -k1.36 i1.9t -63.66 -51.21 ------------------------------------------------------------------------------------------------ :a$Wl. to !IS df I& a W k t m t ~ -312.77 -251.3 -231.53 -1c.P. N -!!(.29 -1Q9.74 -133.S -182.77 -.:.26 -55.52 -71.70 105s Itbls: m !W fa tht vw .W kn fOnf&d10% iwh Lus fa tk rear (Ullai~ &Sh 1035 -31.68 -67.06 i s . s b -.!fi.s -2i.f.6 -232.61 -1E4.65 -136.39 -!0j.71 -7i.87 1 . 47.52 3.71, -5.3 2.L1 I.1L - 5 . -39.5@ 43.66 -13.30 ------------------------------------------------------------------------------- -7.18 -36.66 -75.3? -67.G -51.35 -?Z.lt, -g.3j -63.6 -27.98 -6!+.hb -62.06 -23.64 -22.65 -21.23 7.62 -0.35 2.30 9.22 -6.68 ---~---L-=~==~==r---------------------------r----------r----------------------------------------------____-_-_--_--------------------------------------------------------------------------------261.B -232.61 -1U.65 -l!f.OS, -i05.71 Af~exliuI: SCMiIARY OF BALAMCE ShEiTS RsRM -----------------------------------------------------------..I--------.----- 1988-29 1987-88 1986-87 !QE-36 1934-35 1983-56 1982-83 1981-82 1480-81 1971-50 ---------------------------------------------------- liabilities: --..-------------------Share-holders' funds -------------------P a i d - ~Shere ~ Capital Reserves: 31.96 Res. fund & C ~ D ,res. Gratuity fund Others Sscured Loans 1.36 25.92 256.60 236.56 226.13 2?9.6& 197.31 185.23 168.74 Llh.69 139.94 lil!j I --------- Sovt. of Kerala Deposits 1.31 1.51 12.56 i.31 1.31 19.9 12.87 64.78 . .38.?7 12.17 36.66 187.63 le-.63 187.63 118.72 119.10 ?.?I 1.60 1.54 1.31 18.17 65.g6 1.36 27.35 66.% 1.36 ??.I2 66.86 1.6 26.01: 52.99 2?.2e i?.59 b8.6@ 2L8.if 26.54 257.06 lT.?i 127.63 6.26 6.35 4.21 3.76 3.18 506.17 23.14 130.20 713.63 li11.93 60.59 :.31 33.21 I&.? -------- Staff 8 agency Current Liabilities 1.38 1.85 281.68 256.86 250.63 167.46 113.18 51.36 25.82 62.65 32.89 27.38 27.59 115.63 108.3~ 101.12 87.16 72.32 56.M 30.37 563.17 19L.52 550.79 515.56 446.76 31.78 256.87 57.45 23.52 23.13 202.88 ------------------Sundry C r e d i t ~-PUS ~ Other Lidbilitles Interest due Bank Borrowing CC & 00 Assets: ------------ Fixtd Assets Investment Cwnnt Assets Yarn Cloth Others F r m Govt. freb+s~l.reb. From Govt. fhvt. ser) Frcm h v t . (grant. div. ,etcl Advances Su$oence m m t R~eivables Other Assets Doubtful dzbts Fixed O m s i t s BsnklCt~sh Carry torward Loss l??.Ql 697.91 !!.67 56.2'2 261.65 1 It,, 1t.C 179 13.4