Empowering Women: A

Case Study of Swawlambi

Sakhi Producer Company
(OFPO)

Dr. Pallavi Ingale1, Ms. Sonal Kadam2

Associate Professor, pallavingale7207@gmai.com, 9850861405, Vaikunth Mehta National Institute of
1

Cooperative Management, Pune, Maharashtra

Research Officer, kadamsonal02@gmail.com, 8446187951, Vaikunth Mehta National Institute of
2

Cooperative Management, Pune, Maharashtra

Introduction to Famers Producer Organization in
India
• Cooperatives, one of the oldest forms of producer collectives,
have not been able to grow into strong member-controlled and
self-sustainable business entities (Shah 2016) because of
excessive dependence on government funds, political
interference, bureaucratisation, and corruption (GoI 2000).
• In 2000, the concept of producer companies was recommended
by a committee chaired by Y. K. Alagh.
• These companies were designed to bring together desirable
aspects of the cooperative and corporate sectors for the
benefit of primary producers, especially small and marginal
farmers (Alagh 2019; GoI 2000).
Introduction to Famers Producer Organization in
India
• In 2002, the Companies Act of 1956 was amended to allow
for a new form of corporate entity, namely producer
companies
• The Farmer Producer Organization/ Companies (FPOs/
FPCs) model has the potential to become sustainable in
terms of its significance to the livelihood of members
(Trivedi, P.et al, 2022).
• FPO collective actions are key factors in enhancing
farmers’ access to markets. Farmer organization is a critical
factor in making markets work for the poor (Hellin, J. et al,
2009).
Introduction to Famers Producer Organization in
India
• FPO can help smallholder farmers participate in emerging high-value
markets, such as the export market and the unfolding modern retail
sector in India. In the environment of greater instability and
competition, organization and collective action can help to enhance
farmers' competitiveness and increase their advantage in emerging
market opportunities (Trebbin, A. et al. 2012).
• The data provided by the Union Ministry of Corporate Affairs shows
that, as of February 2023, there are a total of 16,000 FPCs in India.
In the last three years: 2020-21, 2021-22, 2022-23, the largest
increase in the number has been observed, when 65 per cent of the
FPCs were registered (DTW, 2023).
Status of Non Farm activities
• The 2019 Situation Assessment of Agricultural Household, data,
highlights a significant shift in farm household income sources.
• On average, agricultural households now earn 47.35% of their income
from non-agricultural activities, up from 40% in 2012-13.
• This emphasizes the growing importance of non-agricultural income. To
enhance farm household income rapidly, it is imperative to harness both
agricultural and non-agricultural avenues.
• Agriculture offers valuable insights for India's 2047 development vision.
Dairy, poultry, and fishery sectors show promising growth rates for this
transformation.
• Horticulture and agro-forestry have untapped potential, requiring
liberalization.
• While non-farm sectors promise high growth, agriculture remains vital for
inclusive development, employment, renewable energy, and sustainability,
integral to achieving the vision of a developed "Viksit Bharat" during the
 Vital role of National Bank for Agriculture and
Rural Development (NABARD)
• “Off-Farm Producer Organizations are legal entities formed by producers like
artisans, weavers, craftsmen etc. which provides for sharing of profits/ benefits
among members” (nabskillnabard.org).
• Promotion and formation of off-farm producer companies is of utmost importance
to encourage young entrepreneurs to move towards other sectors such as handloom.
• This is supposed to arrest large-scale migration of small and agricultural
labourers to the urban areas in search of livelihood opportunities due to
unemployment/ disguised employment in the agriculture sector (Business Today,
2020).
• The data available states that, till 31st March 2020, there were 33 OFPOs that have
been supported with grant assistance of ₹12.88 Crore which covered around 11,678
beneficiaries across 19 states.
• Under Companies/Societies Act, 18 OFPOs have been registered which are engaged in
aggregation, marketing and input distribution operations (nabskillnabard.org)
Deshpande Foundation in India
• The Deshpande Foundation in India has been dedicated to
understanding and tackling the challenges faced by rural and semi-
urban communities.
• Their core focus areas include Agriculture, Micro-Entrepreneurship,
Skilling, and Startups.
• They operate as a unique social enterprise, combining business
expertise with the compassion of not-for-profits.
• To date, they have built over seventy thousand farm ponds benefiting
one lakh farmers, supported over 4,900 micro-entrepreneurs, and
aided more than 300 startups across India.
(deshpandefoundationindia.org)
The Micro Entrepreneurship Development Program
• This Program, initiated by the Deshpande Foundation in 2011, is dedicated to
empowering entrepreneurs with the skills needed for successful businesses.
• The primarily targets at the grassroots level, offering essential mentorship,
resources, and support to boost their annual earnings.
• This holistic program serves as a robust platform, creating a nurturing
environment for entrepreneurs. Its overarching objective is to foster growth
among individuals from rural and peri-urban areas by delivering mentorship,
credit access, marketing support, and invaluable business guidance.
• The MEDP operates in two distinct sandboxes, covering a total of 12 districts across
two states: Hubballi Sandbox in Karnataka and Kakatiya Sandbox in Telangana.
• This program offers a comprehensive package comprising four key elements:
business coaching and mentoring, skill training and development,
networking events, and marketing and sales support. These combined
efforts empower women to enhance their skills and excel in entrepreneurship.
 Micro-
Entrepreneurship Empowerment of
Deshpande
Development Program women through
Foundation
(MEDP) skill development

Formation
of OFPO

Swawlambi Sakhi
Producer Company
Ltd

Active Board Women skill

Supervisor team
members development
Genesis of Swawlambi Sakhi Producer Company Ltd
• The Micro Entrepreneurship Development Program by Deshpande
Foundation recognized the need for innovation and solutions. Deshpande
Foundation made these 200 women from twin cities of Hubballi-Dharwad
join hands, turning the threat into an opportunity that evolved into a
livelihood option and decided to supplement the family income through
a new venture while their husbands were laid off or facing salary cuts
amidst the lockdown.
• Swawlambi Sakhi Producer Company Ltd. (SSPCL) was registered on 9th
October, 2020. It is registered at Registrar of Companies, Bangalore. Its
authorized share capital is Rs. 1,500,000 and its paid-up capital is Rs.
103,500.
• This community owned Off-Farm Producer Company lending a helping
hand to the women to earn sustainably and become self-reliant. The
working of SSPCL has expanded its presence to encompass two urban
centre’s in Karnataka: Dharwad and Hubli.
Evolution of ‘Authentic Karnataka’- the
Brand
• SSPCL has an all women unit under the embroidery wing who are Aari
embroiderers, kantha embroidered products (like quilts, cushion
covers etc.) and tailors.
• With the support of a collective of Deshpande Foundation and
NABARD, a collective of 200+ Aari artisan members is working with
vigorous efforts to set up production and a marketing wing for all the
products of the members and Aari artisans as an OFPO.
• Aari embroidery is known to be done primarily during festive times, and
during other times the women might not receive enough orders. Thus,
the concept of creating a collective for these women emerged. As a
group, they are now producing products with beautiful Aari embroidery
instead of merely focusing on seasonal personalized orders. It has been
dispersed across Dharwad and Hubli, two urban areas in
Karnataka.
Evolution of ‘Authentic Karnataka’- the Brand
• This company has formed a brand ‘Authentic Karnataka’
with the help of NABARD and has opened many stores in
Karnataka to sell their handmade products.
• In Northern Karnataka, this is the first producer company that
was owned by women.
• The brand provides the elegance of handcrafted Products as
well as the mindfully curated products.
• With a traditional purse for everyday use or unique jewellery
for special occasions, Authentic Karnataka gives the best
options to complete the style.
Evolution of ‘Authentic Karnataka’- the Brand

Authentic
Karnataka

Wall Corporate Home

Bags Jewellery
Frames Accessories Linens
Women – Intertest base model
• The company has a dedicated training unit exclusively for
women, where they acquire expertise in Aari work.
• Upon mastering this skill, these women become integral to
crafting distinctive handmade products.
• Each woman gets exposure to diverse product manufacturing
processes and subsequently chooses to specialize in areas of
personal interest, enhancing their ability to create high-
quality handmade products that will sell under the "Authentic
Karnataka" brand.
 Way forward for Swawlambi Sakhi Producer
Company Ltd.
• Market Access and Product Positioning
• Comparison between machine-made and handmade products, often leading
to price disparities that burden artisans.
• SSPCL should focus on highlighting the unique value of their handmade
Aari products. These products should be positioned as premium, high-
quality, and reflective of traditional craftsmanship.
• Corporate Tie-Ups
• To get into the corporate gifting market, SSPCL should establish tie-ups
with IT companies and other businesses that provide corporate gifts, especially
during festivals like Diwali.
• SSPCL may consider setting up a dedicated team to liaise with corporate
clients and offer customized Aari products as corporate gifts.
 Way forward for Swawlambi Sakhi Producer
Company Ltd.
• Franchise-Based Mall Chains
• In urban areas, franchise-based mall chains have gained popularity.
• SSPCL can explore collaboration opportunities with these supermall chains to
showcase their exclusive Aari products. Such collaborations can help SSPCL
reach a wider consumer and gain visibility among urban consumers.
• Product Development and Customer Targeting
• Aari products are handmade and often come at a premium price, SSPCL should
target the middle-upper and higher-class segments of society.
• Moreover, the company should constantly innovate its product offerings to
meet the evolving preferences of these consumer groups.
• Understanding the needs and preferences of these segments is crucial to staying
relevant in the market.
 Way forward for Swawlambi Sakhi Producer
Company Ltd.
• E-commerce Platforms
• To expand its reach nationally and internationally, SSPCL should leverage e-commerce
platforms such as Amazon, Flipkart, and Myntra.
• Some Aari products can be repositioned as fashion accessories, such as mobile pockets,
laptop bags, and potli bags, which can appeal to a broader audience beyond traditional
buyers.
• Fashion Shows and Designer Collaborations
• SSPCL can explore collaborations with fashion designers and event organizers to feature
their handmade Aari products in fashion shows.
• This exposure can help the company position its products as trendy and fashionable while
preserving the essence of traditional craftsmanship.
Conclusion
• The case of Swawlambi Sakhi Producer Company Ltd. (SSPCL) demonstrates the
transformative potential of Off-Farm Producer Organizations (OFPOs) in empowering
rural communities, particularly women artisans. SSPCL emerged as a response to the
COVID-19 pandemic, harnessing the skills of women in Aari and Kantha embroidery,
and tailoring to create a sustainable livelihood option.
• Through the support of the Deshpande Foundation and NABARD, SSPCL has
provided economic empowerment to women and established itself as a trailblazing
producer company in Northern Karnataka.
• The success story of SSPCL highlights a unique business model where women are
trained to create each product with exceptional quality.
• Each product has a dedicated supervisor responsible for overseeing the training and
manufacturing. The marketing team focuses on effective promotion, and all these
supervisors are women. Additionally, the board of directors actively participates in all
kinds of communication.
Conclusion
•It is strongly recommended that SSPCL position its products as premium, high-quality, and reflective
of traditional craftsmanship. This strategic approach will help SSPCL address challenges related to
price disparities by specifically targeting customer segments that appreciate the value of artisanal
craftsmanship. Leveraging e-commerce platforms and engaging with the fashion industry will also
play a pivotal role in expanding SSPCL's reach and enhancing the impact of its artisanal products.
•Overall, SSPCL represents a shining example of how OFF Farm Organizations can drive sustainable
and inclusive development in urban and rural areas, contributing to economic growth and the
preservation of traditional crafts. As it continues to evolve and adapt to changing market dynamics,
SSPCL holds the promise of not only improving the lives of its members but also enriching the
cultural heritage of the region.
1. Bags
2. Wall Frames
3. Home Linens
3. Corporate Accessories
4. Jewellery
References
1) Deka, N., Goswami, K., Thakur, A. S., & Bhadoria, P. B. S. (2020). Are farmer producer companies ready to behave as business entities? Insights
from the vegetable-based farmer companies in West Bengal, India. International Journal of Agricultural Sustainability, 18(6), 521-536.
2) Hellin, J., Lundy, M., & Meijer, M. (2009). Farmer organization, collective action and market access in Meso-America. Food policy, 34(1), 16-22.
3) Jose, E., Meena, H. R., & Verma, A. P. (2019). Case studies of dairy based farmer producer companies in Kerala. Int. J. Curr. Microbiol. App. Sci,
8(1), 501-505.
4) Michalek, J., Ciaian, P., & Pokrivcak, J. (2018). The impact of producer organizations on farm performance: The case study of large farms from
Slovakia☆. Food Policy, 75, 80-92.
5) Neti, A., Govil, R., & Rao, M. R. (2019). Farmer producer companies in India: Demystifying the numbers. Review of Agrarian Studies, 9(2369-
2020-1967).
6) Singh, S. (2008). Producer companies as new generation cooperatives. Economic and political weekly, 22-24.
7) Singh, S. (2009, November). Linking small horticultural producers with markets: Indian experiences and lessons. In International Symposium
Postharvest Pacifica 2009-Pathways to Quality: V International Symposium on Managing Quality in 880 (pp. 75-82).
8) Tagat, V., & Tagat, A. (2016). The potential of farmer producer organizations in India. Available at SSRN 2972488.
9) Trebbin, A. (2014). Linking small farmers to modern retail through producer organizations–Experiences with producer companies in India. Food
policy, 45, 35-44.
10) Trebbin, A., & Hassler, M. (2012). Farmers' producer companies in India: a new concept for collective action?. Environment and Planning A,
44(2), 411-427.
11) Trivedi, P. K., Ali, M., & Satpal. (2022). Farmer Producer Organisations in North India: Potentials and Challenges. International Journal of Rural
Management, 0(0). https://doi.org/10.1177/09730052221107730
References
1) https://www.businesstoday.in/industry/agriculture/story/nabard-promotes-non-agri-sectors-to-limit-west-bengal-over-reliance-on-farming-
279371-2020-11-22

2) https://www.downtoearth.org.in/news/agriculture/here-is-how-producer-organisations-evolved-in-india-8886
6#:~:text=Overall%2C%20there%20are%20a%20total,of%20the%20FPCs%20were%20registered
.
3) https://www.nabard.org/about-departments.aspx?id=5&cid=478
4) https://www.newindianexpress.com/states/karnataka/2020/jun/30/200-women-form-startup-to-make-masks-f
or-covid-19-battle-now-deluged-by-orders-2163544.html
5) https://www.zaubacorp.com/company/Swavalambi-Sakhi-Producer-Companylimited/
U01100ka2020ptc139552
6) https://deshpandefoundationindia.org/medp/
7) https://kakatiyasandbox.org/
8) https://www.authentickarnataka.com/
9) Ramesh C. and Jaspal S. (2023) “From Green Revolution to Amrit Kaal­-Lessons and Way Forward for