Internship report on

INDUSTREE CRAFTS PVT LTD

Submitted in partial fulfillment in the requirement for the degree

Of

Masters in Fashion Management

Submitted by:

Kumud Kant Bilhatia

Mitakshara Sharma

Sharique Siddiqui
 Declaration

This is to certify that this project of “Sales Analysis” done in Industree Crafts
pvt ltd. is our genuine work which has been done in the partial fulfillment in
the requirement for the award of degree in Masters in Fashion Management.
If found otherwise, renders the work null and void.

Kumumad Kant Bilhatia

Mitakshara Sharma

Sharique Siddiqui
 Acknowledgement

Among the many people to whom we are indebted for assistance and
encouragement during our internship, we would especially like to thank

MS.GULNAZ BANO, Dr. SANJEEV KUMAR and MS. NETRAVATHI who

have mentored us during our internship.

We would like to offer our infinite, heartfelt thanks and admiration to Mr.
Nihal, who is the designing head in MOTHER EARTH, for his support and
guidance.

Above all, and as ever, we would like to thank GULNAZ MAM for her support
and help us to get internship in a place which has proven to be a great learning
place for us.

And we would like to thank the whole INDUSTREE CRAFT’S MANAGEMENT

and our faculty for their love and affection and timely support.
CONTENTS

 EXECUTIVE SUMMARY
 ORGANISATIONAL OVERVIEW
 ORGANISATIONAL STRUCTURE
 VISION
 MISSION
 CORE VALUES
 TARGET MARKET
 THE RETAIL CUSTOMERS
 BRIDGING SERVICES BETWEEN SMALL PRODUCERS AND RETAILERS
EXPORTERS
 BUSINESS MODEL
 BENEFITS OF THE SELF HELP GROUP MODELS
 GROWTH OF INDUSTREE
 THE ENTRY OF FUTURE GROUP
 STRATEGIC DECISION FOR ORGANISATIONAL ADAPTATION
 SWOT ANALYSIS
 PROJECT
 CONCLUSION
EXECUTIVE SUMMARY

For thousands of artisans and farmers in India with low incomes and partial employment,
Industree provides market opportunities, backed by design inputs, skill and organizational
training to enable artisans to work in groups, producing products saleable in urban and global
markets. This brings much needed livelihood opportunities, increasing income, enabling them to
raise their nutrition and children’s education standards. This is achieved not by a top down, but
by a bottom up approach, wherein they are encouraged to invest their savings in and become
owners of their production units, in ways which increase productivity and profits for them.
Rural artisanal and local economy, value addition skills are significant as rural income providers
in India. India is estimated to have anything between 6 million to 40 million artisans. This
includes what has so far been called the handicraft and handloom sector. The prospective
numbers involved in value added organic food in India, would increase these estimations
considerably. Industree’s focus is on raising the level of rural involvement in modern Indian
organized retail which is growing at a scorching pace. The value-added production that rural
India provides to this organised sector will currently be a small percentage, of the total volume
and will mostly be in the sector of food. India is witnessing an unprecedented domestic retail
boom, with expansion in home, food and apparel markets, being tapped by mostly imported
goods in furniture and home, and easily accessible urban producers with larger production
systems in place. These production units are built on a rural workforce which migrates to urban
centers. This indicates a huge market opportunity for the millions of under compensated
handloom weavers, handicraft artisans, and poor farmers who represent a large traditionally
skilled rural workforce, which is unorganized and unadapted, suffering from poor production
infrastructure, access to working capital, and contemporary entrepreneurial skills.
As a company Industree hopes to set benchmarks for sharing urban prosperity with rural India
Through mainstream business. It visualizes a large opportunity in linking micro finance with the
development of these producers into production units, which when provided with appropriate
markets, designs, production infrastructure and appropriate management tools, can help bridge
the urban rural divide. Urban Indian economy is growing in double digits while the rural
agricultural economy lags behind in the lower single digit. India has the largest number of poor
people in the world. Industree’s approach, as differentiated from a typical micro finance
approach, is that individuals in a group save, towards a group livelihood activity. Rural
Production can come of age, if it moves towards group enterprise, wherein a group of
artisans/farmers or a collection of groups come together, pool theirs savings into working capital
and towards overhead expenditure, such as rental of a common work shed, maintenance of their
Production center, their manager, their transportation costs, etc. For this Industree provides the
market pull, by establishing new brands and the supply chain to support the same. It will tap
Supply chains being set up as well as existing supply chains, and its very presence will catalyze
the creation of more such supply chains. Rural India, not getting the opportunities, is migrating
to urban India. A crucial link between the two needs to be established. Urban consumption needs
can be well-served by rural Indian skills, for essentially more and more urban consumers are
rising from small town and semi-rural backgrounds and their roots and tastes are thus very
Indian. It is a question of narrowing the taste division, by adapting the vast pool of traditional
skills and production methods that exist in abundance.

History

Product designers Neelam Chhiber, Poonam Bir Kasturi, and social investor Gita Ram first
worked together in the early 1990s on a string of government-sponsored projects to enhance
artisanal skills in rural India. The siloed nature of government programs frustrated them for two
reasons. First, although the government supported skill building and manufacturing efforts in
rural areas, it failed to generate market demand for the products that were being made. Chhiber
says, “Without a free market model there will be over supply.” The result was that Chhiber and
the artisans she worked with had no access to consumer input to improve their design process,
and artisans’ products stagnated on a government shelf rather than being sold to consumer
markets. Second, and more importantly, rural artisans remained poor; they were being taught
new craft skills, but without market demand for their products, artisanal incomes remained well
below the poverty rate .Chhiber, Kasturi, and Ram agreed that the best way to improve the lives
of struggling artisans in rural India was to start a for-profit trading company that could generate
market demand for artisanal products and give rural artisans access to urban markets. Chhiber
describes their approach as “using market mechanisms to create a contemporary face to Indian
craft.” Industree Crafts was incorporated in 1994 with financial backing by Ram, who remains
one of Industree’s most valued advisors and trustees and an influential member of the Craft
Council of India. The first Industree store was opened in a residential part of Bangalore in 1996,
and the company began exporting products to the US and Europe in 1998. In 1999, Kasturi sold
her shares in the company. Chhiber recalls a significant turning point when she realized that
Industree couldn’t be a successful social enterprise functioning only as a for-profit. The
additional costs of reaching, engaging, and training rural artisans were too substantial to support
a strictly for-profit model. Government funding was available to build rural capacity, but not
granted to for-profit companies. And so, Industree Crafts Foundation (ICF) was established in
2000. The Foundation supports artisan skill development in rural areas and provides craft
training, small enterprise skills development, and technical assistance to rural artisan producer
groups. The Foundation achieves financial sustainability by way of a consultancy model and
earned nearly $35,000 in 2007 through consulting contracts from the Indian government.

ORGANIZATION OVERVIEW

Industree so far has been a hybrid model, with the ‘for-profit’ involved in retail, design,
sourcing and warehousing as well as direct artisanal production enhancement, with direct work
in four rural village centers across Tamil Nadu and Karnataka. The ‘not for profit’ is engaged in
capacity development and skill training for rural artisanal groups. For Industree the customer is
the consumer who purchases the artisanal product and the client or beneficiary is the producer or
artisan. The company is ably mentored by Mrs. Gita Ram, who has 30 years voluntary
experience in the artisanal sector. Neelam Chhiber, the Executive Director, oversees the day to
day operations. An able team of dedicated staff, is in place for the last 12 years. Design,
merchandising, account, production and warehousing heads are in place. Currently the
organisation directly employs 160 people in Bangalore. It has four stores under the Mother
Earth brand in Delhi, Bangalore, and Kolkata and Mumbai. It has been networking effectively
with some of the leading retailers in India such as Shoppers Stop, Future Group, Fabindia, Ebony
as well as small boutique buyers, large global companies such as IKEA, Interface, Crate and
Barrel. It is a member of IFAT, and has a Fair Trade certification. It networks with the related
government departments, and the Office of DC Handicrafts, Ministry of Textiles, has awarded
the prestigious AHVY, Natural Fiber Theme Cluster project to the non-profit, wherein the GOI
will invest up to 10 million USD on the training and production facilities for 7,500 producers
across India.

ORGANISATIONAL STRUCTURE

Gita Ram, Co-founder

Mrs. Gita Ram, co-founder, craft activist, mentors the company, and has been its principal social
investor providing it with loans of up to 150,000 USD without collateral, at less than market
interest. She is the leading light in Industree’s quest to uphold a tradition of volunteerism. This is
essential to keep the balance of this venture that hopes to benefit the economically under
privileged, through a for profit enterprise where often the discrepancies of free market wages,
between urban management and rural producers can be quite extreme.

Neelam Chhiber, Co-founder

Neelam Chhiber is co-foundering Industree, a social enterprise that connects rural producers to
urban markets. Industree has obtained investment from Future Group, India's largest retail chain
to build a retail brand called Mother Earth, which is part producer owned, 14%. Industree is
converging backwards to create a complete solution to fair and equitable distribution of returns
from consumer to producer. The next company in the chain is Industree Transform that will be a
supply chain company, with 26% producer ownership with the formation next year of an NBFC,
into which thrift cooperatives set up by Industree Transform will take shareholding up to 49%.
This will provide much needed working capital to small producers, at lowest possible interest
rates.

Neelam is an Industrial Designer from National Institute of Design and alumnus of Social impact
International, as well as Global Social Benefit Incubator, Santa Clara University, USA. She
believes that the strong marketing platform that Mother Earth will provide for Food, Fashion and
Home will drive producer incomes upwards, increase potential of ownership in their own
enterprises, which in turn will drive efficiency. The basic production module that Industree
Transform develops is a group of SHG's who invest their own working capital in their enterprises
and who are provided assures orders, on new designs created by Transform, along with access to
improved infrastructure, working capital, and business development skills.

She is of the firm view that Design education has been key to 360 degree thinking. Neelam
believes Industree's biggest challenge and reward has been to facilitate and enable producers to
manage themselves in changing scenarios

Raminder Singh Rekhi, CEO

Mr. Raminder Singh Rekhi has over 13 years of exposure to rural enterprise development,
forging marketing linkages, supply chain management, sourcing, logistics, vendor development,
media management etc. This involved community mobilization, training, empowerment and
capacity building etc. During his stint with Pantaloon Retail India Ltd, Raminder had been
instrumental in the opening of 12 new stores totaling 3, 78,000 sq. ft. (Prior to Jun ’01
Pantaloons had just one store of 12,500 sqt) and increasing turnovers from Rs.20 crores to
Rs.250 crores. During the course of his career, Raminder has interacted with a variety of NGOs
and CSOs including those working with farmers and linked them up to markets and retailers as
well as sensitizing consumers on their products.
 INDUSTREE CRAFTS PVT. LTD.
MANAGING DIRECTOR

CHIEF EXECUTIVE
OFFICER

HUMAN
FINANCE CATEGORY DESIGNERS WAREHOUSE SALES MARKETING
RESOURCE

WAREHOUSE SR.
FINANCE HR MGR. TEXTILE STORE MANAGER
MGR. MARKETING
MANAGER MANAGER HOME DISIGNER
MANAGER

MGR. DEPT. ASST.

FURNITURE WAREHOUSE
APPAREL MANAGER MARKETING
ACCOUNTS DESIGNER EXECUTIVE
EXECUTIVE MGR

MGR.
FOOD WAREHOUSE SALES GRAPHIC
ASSISTANTS EXECUTIVE DESIGNER
CASHIER

DRIVERS
OFFICE
ASSISTANT
Vision

Connecting rural livelihood skills to urban markets in an equitable way.

Mission

To enhance and create rural artisanal livelihoods through marketing of contemporary designed
artisanal produce, such as food, apparel and home products, for urban markets, wherein
producers own equity, in the production and retail brands.

Core values

Transform the lives of rural producer communities, by integrating them sustainably into the
larger consumption economy through a for profit institutional model of ownership integrated
with design, production and marketing, thereby ensuring

1. Improved earning capacities of rural families, thereby bringing them into the consuming
economy

2. .Reduced pressure on cities and urban centers, by creating opportunity to improve one’s
life in rural settings

3. Reduction of environmental load of economic activities and Increase in sustainable

economic practices such as organic farming, use of natural materials ,dyes, and proper
disposal of effluents, survival of traditional production practices and sensitivities,( in
contemporary forms) energy efficient and low carbon footprint manufacturing processes,

4. Servicing customers who through their purchase, provide markets and are chief enablers
of the above.
TARGET MARKETS

Industree’s customer is the retail consumer buying artisanal and organic products, while its
Primary clients are producers. These producers have to manage their ‘business’ in buyer-driven
Value chains, of which national high and middle value markets and export markets represent the
Highest earning potential for artisans in developing economies. India currently exports 17,000
crores of handicraft merchandise alone, but this is just 3% of existing global markets. Minor
Portions of the same trickle down to the rural artisan. This sector has thrived because of the
Infrastructure and capital infusion provided by urban, mostly north and West India based
Exporters, in towns and cities. There is very little data available on domestic markets for these
Artisanal products. In order to access these markets and to improve their income situation, small
producers need to upgrade their value chains. Upgrading basically means that clients will earn
higher returns when they value-add their contribution to the value chain.
Higher returns can be obtained:

 By changing production processes or techniques (process upgrading);

 By producing new products and designs that respond to changing trends (product
upgrading);

 By taking on additional functions or tasks that are performed by other actors in the chain
(Functional upgrading); self managing the enterprise, self checking and supervision, and

 By entering a new market channel of the value chain.eg, building a brand, investing in
retail and the brand.
The Retail Customer

The 2 main markets for client producers are mainstream and fair trade markets. Industree has
thus far catered only to mainstream markets, believing that thereby it has honed its knowledge
and experience base to handle fair trade markets that are relatively simpler. The concept of a Fair
Trade market, so far is a western concept, which has not taken root in India. Industree believes
that there is huge potential in establishing an Indian version of Fair trade, which is what the
Brands it will establish will stand for. This basically is the mainstream market. Mainstream
Markets can further be distinguished into high-volume mainstream markets, mostly global
buyers and high-value mainstream markets, currently mainly symbolized in India by the
designer/high fashion market which depends a lot on traditional artisanal skills. The fourth is the
tourism market, which has high growth potential. This is partly served by government retail
outlets, stores within5 star hotels, and the like. Industree currently markets out of 4 of its own
brand stores- Mother Earth in Bangalore, Delhi, Kolkata and Mumbai. These stores are located
in malls and prime retail locations. In addition it markets product lines through shop in shops
with leading chains such as Shoppers Stop, Home Stop, and Centrals & Home Towns across
metros in India. It supplies to smaller stores in over 12 cities in the country. It has supported its
growth through tapping export markets, participating in some of the leading International fairs,
trying to access global markets. It has received access to some of the most difficult fairs to
participate in, due to the unique flavor of its product line, such as Heimtextile, Ambience and
Tendence. It has participated in Sources New York and has been supplying to global retailers
such as Pier Europe, Ikea, Crate and Barrel.

Bridging services between small producers and retailers/importers

Small producers in developing economies either work self-employed in the informal sector or
have ongoing or short-term contracts with aggregators. In such a manual system of production,
small producers typically need a bundle of specific business services. Industree ensures that the
right services are provided. It needs to build up cost-effective ways of providing these services,
and manage the overall organization of the service provision. In other words, it organizes
complex small producer supply chains to meet sophisticated client needs.
Industree provides the essential ‘bridging’ services between small producers (becoming a value
adding and problem solving distributor) and retailers/importers in the value chain. Small
producers who want to access higher value markets generally need the following key services
 Marketing and market access;
 Design and product development;
 Supply chain management & quality control;
 Access to infrastructure and updated/appropriate production techniques
 Financing.
Industree thus far has been very successful at the first two, moderately successful at the third &
Lags behind in the last two. Small producers in India generally do not have the resources to
afford fee-based business services. In addition, producers living in remote and rural areas are not
an attractive target group for professional business providers operating from urban centres.
Consequently, small producers have little experience in seeking and contracting for such
services. Thus those not geographically placed suitably to become part of market pulled value
chains get totally ignored by this market system. Secondly the largest weakness in the role of the
above intermediaries is that mostly none of the incomes or profits generated by their services is
ploughed back into the supply chain, enabling any substantial increase in the wages of those right
at the bottom of the value chain. Industree has so far impacted this, and it hopes to scale up this
impact. This is its mission.

Business Model

Industree employs a Market Intermediary Model3 to increase rural income by generating market
demand for goods produced by rural artisans. Its nonprofit arm helps individual artisans
Collectivize into self-governed producer groups called Self-Help Groups (SHGs). SHGs receive
Capacity-building support, technical assistance, and entrepreneurial skills training (including
training on how to run a group, group dynamics, cash management and loan repayment).Once
formed, each SHG functions as a mini-enterprise—producing and trading goods with Industree
and other vendors. Each group elects leaders to serve as term-based officers. These members are
responsible for managing the group’s bank account (to which all Industree payments for products
are made) and distributing payments to group members on a monthly basis.
.

Benefits of the Self-Help Group Model

• Scaleable: As Industree grows, it expands its network of SHGs to meet capacity needs.
• Empowers artisans: Artisans’ involvement and ownership of the model builds integrity and
self-determination within the group.
• Earning potential: SHG members can earn more as a group than individually through order
size and security.
• Peer Support: SHG members provide peer-to-peer training, emotional support, and financial
support in the form of peer-to-peer micro loans.
• Accountability: Group members hold one another responsible for order completion and quality.
• Greater quality control: Group leaders check all completed

Growth of Industree
After 12 challenging years of operating a for-profit with the goal of reducing poverty among
rural artisans, Ram and Chhiber took stock in 2007. They commissioned a social audit report on
the company’s activities, and found that Industree had in some places successfully increased
rural incomes by almost threefold. For every Rs 100 in sales, Rs 56 were returned directly to the
producer community. Yet the problem persisted: most rural artisan still earned a meager $1 per
day. Ram andChhiber realized several gaps in their model: There was no formal mechanism to
support artisans investing their own savings in equity and working capital to create an artisan-
owned enterprise; working with government programs was slow and often not aligned with
realities in the field; artisans were unable to scale up production in order to achieve economic
security and asset accumulation. The result was that artisans were unable to challenge existing
power relationships in the market, move up the value chain, or lift themselves out of poverty.
The crucial learning to date highlighted the advantages of group production to increase rural
incomes, where traditional practices established craft as largely an individual occupation.
Artisans engaged in Industree’s model were ready for the advantages of economies of scale
achieved through the group production model. Despite their best efforts, Ram and Chhiber
recognized that Industree needed a new tack, and decided that scaling the domestic market was
the best option for addressing their social problem—Industree needed a bigger brand and an
expanded product line to create sufficient market pull to bring rural producers up the value chain
in a sustainable way. Additionally, Chhiber was convinced that there had to be a viable
mechanism for building artisanal equity into the venture—artisans should both buy into the
process by investing their own capital and reap the benefits of holding an equity stake in
Industree’s model.

THE ENTRY OF FUTURE GROUP

Industree had been operating shop in shop outlets at Future Group stores and Biyani was familiar
with Industree, its approach, and its unique selling point. Chhiber and Ram saw the advantage of
working with a successful multi-brand retailer, supporting the growth of other social brands and
building synergies between them. While an unlikely fit at first glance, Biyani and Future Group
recognized the potential for a multi-brand retail chain positioned to reach the growing “green”
consumer segment and invested $1.5 million USD for a 43% equity stake in Industree’s for-
profit company. Industree’s new CEO, Mr. R. Singh Rekhi, was recruited via Future Group for
his extensive experience in retail as well as his commitment to issues of rural unemployment.
To further support the scale-up process, an additional $500,000 USD in debt financing was
provided by Oikos Credit (a firm specializing in equity and debt financing for social enterprises),
in addition to the $100,000 USD in debt financing, already provided by Gita Ram The proposed
scale-up plan begins with the launch of a new “Mother Earth” retail store in the coming months
(Figure 2). This, the first of 40 stores slated over the next five years, will build on a “green”
brand image, carrying primarily organic and natural products ranging from textiles and home
décor to apparel, food, and gifts. The store will be positioned slightly below major competitors in
similar markets (includingFabIndia and Anokhi, which specialize in apparel) and hopes to
maintain equivalent levels of quality at a lower price by targeting a slightly lower net profit
margin—currently set for 2%. Unlike FabIndia, which uses regional sourcing centers (RSCs) to
source store products (sacrificing a portion of profit margin), Industree sources directly from
producers whenever possible, giving as much of the margin to rural artisans while maintaining
company margin requirements.

STRATEGIC DECISION FOR ORGANISATIONAL ADAPTATION

Adaptability as it relates to stakeholder engagement must be considered on multiple levels. First,

Industree sources its goods from over 3,000 individual artisans in a highly distributed model.
SHG sure spread across multiple states, separated geographically by hundred of miles, yet are
often times working to fill one order. How does Industree allow for adaptability and
decentralized decision making throughout its value chain? One way is through the development
of the SHGs themselves. Rather than working directly with thousands of producers, the
collective nature of the SHGs means that Industree works instead with only hundreds of groups.
In line with Industree’s spirit of entrepreneurialism, each of these groups is encouraged to
function as its own mini-enterprise, with the freedom to solicit orders from other vendors and
choose the most profitable offer. Likewise, this arrangement gives Industree the freedom to offer
orders to the most productive, high quality SHGs—it should be noted that Industree has not
pursued this option, as it continues to guarantee markets for all producing SHGs, but it could be
a strategic decision moving forward. Additionally, Industree’s model must adapt to a wide range
of skill levels across producer groups. Longstanding groups, for example, will have experience
with Industree’s quality standards, payment and delivery process, etc. They will also likely have
been commissioned to work on more technically challenging orders over time, mixing complex
dye requirements with alternative weave styles and processes with the help of Industree’s
product training support. To date, Industree’s model for accommodating this range of skills
levels has simply been to adapt as needed. As stated earlier, all products are guaranteed for
purchase, and so Industree simply adjusts its product specifications in response to the materials it
receives. While a generous accommodation to meet the needs of rural producers, this model
produces high levels of material waste and may not be sustainable on a large-scale. Adaptability
can also be seen on a larger scale in how Industree engages its various stakeholder groups.
Industree dialogues effectively with its wide range of stakeholders on both the supply and
demand sides of the market equation, using its hybrid structure to expand the dialogue broadly.
As illustrated in Figure 5, Industree gathers inputs and feedback from stakeholders via both of its
functional entities, which are then processed, assessed, and used by Industree’s top management.
INSTITUTIONAL ASSESSMENT & STRATEGIC ENVIRONMENT

SWOT Analysis (Strengths, weaknesses, opportunities, threats & barriers)

Strengths

Traditionally developing economies have not had strong domestic markets to create strong
market pulls. Exports have played this role so far. Export customers have been under no pressure
to effect change down the value chain, initiating more investment of profits into increasing
incomes at the bottom of the pyramid. India is currently poised at an interesting threshold, where
its domestic markets are growing, enabling the establishment of market pulls, which if backed by
Suitably thought and planned production linkages could substantially increase rural incomes.
In Viravannalur, Arikesavannalur, Patamadai cluster of villages in Tirunelveli district of
Tamilnadu, Industree Foundation has mobilized 600 women into self help groups and works with
200 of them currently on livelihood. These 200 are traditional Muslim grass mat weavers.
In its three years of work with this cluster, it has raised the average income of half of these
weavers to three times their original income. Through this activity its chief conclusions have
Been, that Producers must invest in their own working capital. Ownership in the enterprise is key
for long-term sustainability and the reduction of in between layers of supervison that actually
stand in the way of further increase in their incomes. This will also make the entire value chain,
more inclusive such as creating supervisory, managerial and even design positions open to
people from within community resources, ensuring long term sustainability and pride in
traditional occupations. To enable producer ownership, steady markets are required, which is
possible through retail domestic sales initially and eventual scale up of these producer
organizations can then be achieved through global markets.

Seeing huge gaps in the value chain, in the production of products that were essential for
Increasing markets for producers it has been working with, Industree experimentally set up some
Production facilities in Bangalore. Learning through this activity over the last two years has been
instrumental in its conclusions that such enhanced value chains need to be created in rural hubs,
for farmers/artisans to be able to access, so as to service sophisticated markets, better. It has
through this experience, enough data to show, how incomes of producers go up substantially
When they are moved up the value chain.

Weaknesses

Mother Earth here has noticed the problems when producers and their decision makers become
too dependant on a captive market. They lose alertness and complacency sets in. This is to be
avoided at all costs.

Opportunity

According to a McInsey report, the Indian consumer of the year 2025, does not even exist today.
Looking at Global trends, this consumer will be an educated, aware, green consumer, concerned
with India’s social divides and the environment. Because of the technology and ICT, job boom in
India, the modern consumer is well traveled and exposed to the concept of Fair trade and
environmental issues. Hence a large market potential for the establishment of an organic, natural,
green, socially aware brand exists. Traditional livelihoods are intrinsically largely green in
nature, taking inspiration from nature, and need to be projected as such. With the huge growth in
micro finance, in India, opportunities for partnerships with rural organizations looking towards
workable livelihood intervention models are also growing.

Barriers and Threats

Costs of retail are growing in India. Very few retailers are actually showing profits, and are in for
the long haul. Industree too needs partnerships prepared for the same. The supply side though
has great potential, but actualizing this potential is going to be a challenge.
The intermediaries developed are not behaving like private sector businesses or cannot
Access different market channels and pursue multiple buyers in order to exploit the
Capacity of the small producers.
Only one intermediary is developed and linked to the producers (hence creating a service
monopoly and buyer dependency).
Embedded business services are not based on commercial terms (they have to make good
business sense for the intermediaries, meaning they can either reach higher value
markets by providing embedded business services (EBS) to producers, or in general get
more business).

Work done during internship

1. Stock Ageing Analysis
2. Design Analysis of Ritu Wears, Sabhayata and Globus in Delhi.
3. Sales Analysis of Delhi, Mumbai, Mantri, and Kolkata stores.
4. MRP range Analysis
5. Stock Balance Analysis
6. Problem Solving at Central and Domlur Store.
 Conclusion

By taking an integrated approach to social enterprise, INDUSTREE we can begin to understand

the benefits of Industree’s model as it relates to all stakeholder groups involved:

Customers benefit from access to high quality, fashionable, affordable, and ethically sourced
products that reinforce their convictions and support fair trade values.

Rural artisans benefit from a consistent supply of product orders, working capital and
infrastructure loans, ongoing training for product innovation, increased earnings, and the
potential to take ownership in an integrated business.

Investors benefit from financial returns (with Industree targeting 7.5% profit within the next
five years, these could be substantial) as well as social returns in the form of measurable
social impact.

The Indian Government benefits from the opportunity to invest development funding into
training and employment programs that connect rural artisans to consumer markets, moving
them up the value chain and out of poverty.

Industree itself and the retailers that source its products benefit from a consistent supply of
innovative products in step with changing consumer trends.

Chhiber, Ram, Rekhi, and the rest of Industree’s team benefit from the satisfaction of having
created both a viable business and a reputable NGO that, first and foremost, succeeds at
increasing the welfare and livelihoods of rural artisans across India.
Likewise, Industree’s activities in resource mobilization have supported the organization’s
growth and success to date. It has effectively leveraged potential resources from both the for-
profit and nonprofit sectors, leading to its ability to create truly blended economic and social
value. Industree’s use of knowledge development systems is potentially its weakest lens, leading
to some areas for improvement in the organization’s operational efficiency. However, with the
scale-up underway, Chhiber and her team have substantial plans to increase both resources
allocated and emphasis placed on knowledge development systems across the board.
Finally, Chhiber and Ram’s ability to manage organizational culture at Industree has laid the
foundation for success across all the performance indicators analyzed here. Their masterful
balance between a for-profit, no-nonsense business approach and a genuine, company-wide
concern for the social mission at hand is no doubt responsible for much of Industree’s success to
date. Looking ahead, Industree is faced with an exciting phase of growth, evolution, and
potential large scale success.

Sample of Industree Products