DEVELOPMENT OF BRASSWARE
INDUSTRY OF MORADABAD
DISSERTATION
SUBMITTED FOR THE AWARD OF THE DEGREE OF
Mnittv of $f}tlos(opiip
IN
COMMERCE
BY
MOHAMMAD SAJID
Under the Supervision of
Dr. S. Shane Haider Naqvi
DEPARTMENT OF COMMERCE
ALiGARH M U S L I M U N I V E R S I T Y
ALIGARH (INDIA)
1989
m ^''-m^y,
\ ^
•».,»-
A C K N O W L E D G E M E N T
A C K N O W L E D G E M E N T
I wish t o express my extreme g r a t i t u d e t o my
eminent s u p e r v i s o r . Dr. s . Shane Haider Naqvi, Reader in
the Department of Commerce, Aligarh Muslim U n i v e r s i t y ,
A l i g a r h , for I had the proud p r e v i l e g e of having his a b l e
guidance t o complete t h i s d i s s e r t a t i o n .
I t gives me g r e a t p l e a s u r e t o acknowledge my profound
indebted t o Prof, samiuddin, chairman. Department of commerce
and the Dean, Faculty of commerce, Aligarh Muslim U n i v e r s i t y ,
Aligarh who was a r e a l source of i n s p i r a t i o n t o me and he
s h a l l ever remain an i n s p i r a t i o n t o me.
I am highly thankful t o Prof. I . H . Farooqui, Ex-Chairman,
Department of Commerce, Prof. Nafees Baig and [Link] Farooq
Khan who encourage me t o carryout t h i s work.
I t gives me a p l e a s u r e t o mention the a d v i c e , and
cooperation by Dr. Mahfoozur Rahman, Reader, in the Department
of commerce, Aligarh Muslim u n i v e r s i t y , A l i g a r h , who d e s p i t e
his preoccupation could spare time t o help me in t h i s work.
I am a l s o g r a t e f u l t o Mr. Ziaul Ghani, Reader in
Department of commerce for extending h i s support and co-opera-
tion.
li
I thank the following Braasware Manufac|turers/
Exporters specially for furnishing the informations
relevant to my research wcrK.
Mr. Khan, secretary, U.P. state Brassware Cooperation,
Moradabad, Mr. Dinesh Gupta, Secretary, Manufacturers/
Exporters Association, Moradabad; M/s Kamil Bhai, Ismailji,
M/S Interdeco, M/s Progressive Trade Linkers and, M/s
Zaroof Exporters, Moradabad.
I am also thankful to Mr. Rashid Husain, Seminar
Librarian Department of commerce, Mr. Shahzad, Mr. Ali Hasan
ar^ Mr. Anees, who helped me time to time to complete this
work.
The dissertation is the fruit of constant inspira-
tion and encouragement by my loving mother, Esq. Qaiser
Jahan, Dr. Sharafat Ullah, Dr. Nisar Ahmad, Mr. Abdul
Khaleeq, Mr. Mohd. Faheem, Mr. Mohd. Mohsin, Mr. Asad
Khaleeq/ Mr. Mohd. Rashid, Mr. Mohd. Majid and Mr. Mohd.
Danish. Their love and effections remains with me in
the course of completion of my dissertation for [Link],
without scholarship.
iii
I am thankful to all the research scholars in the Depart-
ment, specially, Mr. Mohd. Haseeb Khan, Mr. Mohd. Zakaria
Ansari, Mr. Mehmood Alam, Mr. Imtiaz Ahmad, Mr. Imran Saleem
and Mr. Mohd. Asif Khan for cooperation and mutual academic
discourse.
At last, I am thankful to Mr. Akhlaque, who typed my
dissertation at such a short notice*
( MOHAMMAD SAJID )
C O N T E N T S ^
Page No.
1. INTRODUCTION ... ... • • 1 — lV
2. CHAPTER - 1
ORIGIN AND GROWTI-I OF DRASSWARE
INDUSTRY OF MORADADAD ... • • 1 — llT
3. CHAPl'TJIR - II
ROLE OF VARIOUS AGENCIES FOR
THE DEVELOPMENT OF DRASSWARE
INDUSTRY ... ... • . It, — 3 o
4. CHAPTER - III
ROLE OF BRASSWARE INDUSTRY IN
THE ECONOMIC DEVELOPMENT ... • • ?>1 - ^ M
5. CHAPTER - IV
DATA ANALYSIS AND INTERPRETATION . . ^ S " - 7o
6. CHAPTER - V
PROBLEMS OF BRASSWARE INDUglRY ... • • 11 —<^1
7. CHAPTER - VI
CONCLUSIONS AND SUGGESTIONS ... •• * - | l - l o o
OF THE STUDY
8. BIBLIOGRAPHY ... ... •• \ — \^
9. .APPENDIX ... ... •• 1 —•X\J\
INTR O D U C T I O N
Drassware i n d u s t r y of Moradabad i s an old t r a d i t i o n a l
i n d u s t r y having gained i n t e r n a t i o n a l r e p u t a t i o n for the
elegance and e x q u i s i t e beauty of i t s d e c o r a t i v e a r t i c l e s .
With the dawn of independence/ the i n d u s t r y tes retiiarkably
progressed and i s p r e s e n t l y placed second among other Indian
handicraft i n d u s t r i e s . Being a labour i n t e n s i v e industry*
i t has v a s t promises t o provide employment t o thousands of
peoples. Recently, the brassware i n d u s t r y of Moradabad has
a l s o emerged as a prominent source of foreign exchange
earnings'-.for the country t o meet development requirement.
The present study e n t i t l e d , "The Development of
.Brassware I n d u s t r y of Moradabad" i s an humble attempt t o
b r i n g i n t o focus the various problems r e t a r d i n g the growth
of t h i s i n d u s t r y . Since d e t a i l s regarding various a s p e c t s
of t h i s i n d u s t r y appeared to be fragmentary, i t was found
d e s i r a b l e to c o l l e c t the r e l i a b l e information in i t s full
p e r s p e c t i v e by r e s o r t i n g t o a sample s u r v e y .
The study has been divided i n t o s i x c h a p t e r s . While
the f i r s t chapter deals with the o r i g i n and gro^/th of the
brassware i n d u s t r y of Moradabad. The second chapter i s
il
devoted to the analysis of the role of various agencies
for the development of the industry. Third chapter tries .
to analyse the role of Brassware Industry in the Economic
development. The fourth chapter brings out to data analyses
and interpretations of the industry. The fifth chapter
attempts to analyse problems faced by brassware industry of
Moradabad. Chapter sixth being the concluding chapter-;
I believe that this study will prove a catalyst for
further researches on different aspects of this industry.
I shall deem my efforts as rewarded if, this study could
contribute towards formulation of effective policies by
the relevant authorities for the future development of
the industry.
Methodology
Sampling Technique:
Keeping into consideration different constraints
such as# time and resources it is not possible to take a
very large sample size or to distribute the questionnaire,
randomely. Hence/ selection is made on the basis of conve-
nience sample. I would iiake it clear that some of the forms
are improperly filled and left incomplete.
iii
Data Collection?
The collection of data was done through personal
interviews/ with the help of a questionnaire that was
designed for this purpose. The collection of data has
been tnade by interviewing the owners of enterprises* In
case a owner was not available then a close relative of
the owner associated with the enterprise was interviewed.
In course of conducting interview/ met with the respondents
in face to face situation, which resulted in a reliable
and more acurate responses. Moreover during the interview
and in course of getting the questionnaire filled it was
made clear to the respondents that the information provi-
ded by them would be kept strictly confidential and that
the study was for purely academic purpose. This facili-
tated them to give true responses.
Objectives of Study?
The objective of the study is a diagnostic one that
iS/ to find the types of industries in the area and to
evaluate their role in providing employment to and genera-
ting income among the artisans and workers. The study
also aims at studying problems of finance* raw material/
marketing and technique of production and suggests possi-
bilities of their improvement.
iv
In other words / the present study is an atterupt t o j -
i) An evaluation of the operative condition of
the Industries in the unorganised sector.
ii) Assessment of the specific problems inhibiting
t h e i r growth and expansion.
iii) To suggest an alternative* as far as p r a c t i -
cable / for making them economically viable so
that they may provide gainful employment to
the a r t i s a n s / workers and entrepreneurs.
C H A P T E R -_I
" O R I G I N AND GROWTH OF BRASSWARE INDUSTRY OF MORADABAD"
ORIGIIsf AND GRO'^JTH OF BRASSWARE INDUSTl^
OF MORADABAD
Introduction-
Brasaware industry has its concentration in Moradabad
which is one of the districts of western Uttar Pradesh. It
is not only famous for its unique features in India but is
widely known all over the world since the time immemorial.
The brassware industry of Moradabad is not only important
from International point of view as a great foreign exchange
earner but it is more important from national point of view
as of the greatest source of employment and income to the
local people. Brassware Industry of Moradabad being an old
traditional industry of the country earned international
reputation to fulfil the needs and changing tastes of con-
sumers over different periods.
At Moradabad about one third of the total population
of the city is dependent on direct employment in these
establishments. Brassware Industry is scattered all over
the city/ almost in every street, lane and bylane« They
play a dominant role in the economic life of the tcwn. If
these establishments are counted/ together with dealers,
traders/ middlemen and others engaged in the distribution
of the products, the proportion of the people depending
upon on t h e s e amall i n d u s t r i a l u n i t s i s much l a r g e r . A
t y p i c a l workshop i s located in the same house where the
worker and his family r e s i d e . In some cases the family
owns the house but mostly in rented b u i l d i n g .
In the brassware i n d u s t r y / the system of o r g a n i s a t i o n
i s very d i f f i c u l t . I t i s seldom t h a t a small u n i t i s e n -
gaged in a l l the processes needed to produce the finished
products. Usually i t e n t e r s only a t one s t a g e and forms
a l i n k in a chain c o n s i s t i n g of s e v e r a l small u n i t s each
Performing one or another of the p r o c e s s . As a r e s u l t of
t h i s combination and d i v i s i o n of p r o c e s s e s , one product
turned out by one eatabiiahment becomes the m a t e r i a l for
working in a n o t h e r , and t h i s goes on u n t i l the e s t a b l i s h -
ments a t the end of the chain turn out the finished product.
Usually small u n i t does not cMn the raw m a t e r i a l or the
finished product. 90% of them have no manufactiaring e s t a -
blishment of t h e i r own. The raw m a t e r i a l i s supplied by the
dealers. They a l s o supply one the c r e d i t . Usually they
do not place orders from any one e s t a b l i s h e d manufacturer
of a finished products as a whole but take i t s s e r v i c e s for
one car more p r o c e s s e s . Following a r e the establishments
s t a g e s of manufacturing the finished p r o d u c t s :
1. Stanly & Morse, Modern small Industry for developing
c o u n t r i e s , London, p . 3 0 5 .
TABLE No. 1
ESTABLISHMENTS BY STAGE OF MANUFACTURING
[Link]. Particulars No. . of Establishments
1. Making o£ Gulli 145
2. Making of Patterns 36
3. Sheet work 69
4. Moulding 491
5. soldering 227
6. Scraping 709
7. Engraving 73
8. Ijacquening 1358
9. Electropla ting 126
10. Polishing 138
Total 3/3 72
source: Data collected by District Industry Office"
Moradabad, and compiled by the author.
' The labour force of Moradabad"*s Small Scale Industry
is mostly generated in the house-hold units- Children
begin to learn the craft of their parents from a very early
age. Apart from this in many of the brassware establiah-
ments young boys enter as apprentices to learn a craft that
is not carried on in their home or to work under a master-
craftman. This system is in vague particularly with regard
to training in the art of engraving. The most common aqe
for beginning apprenticeship is from 11 to 13 years. Appren-
tices are unpaid in the beginning and receive increased
wages as their skill develops.
Socio-Economic Facts :
1. The Brassware industry has two major lines of
production:
a) Manufacturing of Brass utensils and other utility
i terns /
b) Brass/electroplated nickle silver art wares.
The items in category (a) are mostly for home
consumption but they have potential for export to African
countries Malasia, Indonesia where People of Indian origin
live. Items in category (b) are primarily meant for export.
2. This industry is organised on cottage industry basis,
however the 'Karkhandari' system is fundamentally
prevalent where Karkhandar is not a trader but an
actual organiser of production, i.e. entrepreneur
manufacturer.
3. Division of labour is prevalent at all centres where
processes are dooe by differerjt sets o£ people- There
are pattern makers, moulders/ scrappers, solders,
engravers, polishers and electroplaters.
4. The supply of essential raw material and the sale of
finished product is controlled by private traders and
middlemen. The raw material supply is controlled by
the big businessmen who have the financial capability
of large investments in the manufacturing.
5. There is a wide gap between capital investment and the
working capital needs of the Karkhandar engaged in
production activity vis-a-via the loan facilities
available through institutional financing agencies. The
natural result is dependence on private source, who
charges exorbitant rates of investment.
6. In this industry men, women and children all contribute
their gh£ire of labour in different ways.
7. The artisans in the industry are mostly illierate.
They aire devoid of! the sense of decent and clean
living, family planning and a balanced habit of spen-
ding. This adversely affects their socio-economic
condition, which is pitiable. At Moradabad more than
70% artisan live and wcark in unhygienic condition
which has resulted in high incidence of serious ail-
ments like T.B. which naturally affects the working
capacity of the artisans adversely*
Establishment and Growth of the Industry:
There is no authentic information available regarding
the establishment of brassware industry of Moradabad/ but
it is believed to be a few centuries old. At the beginning/
the industry is reported to be in the hands of a class of
Persons known as 'potters*. Their range of production was
limited to utensils only. However, soon afterwards brass-
ware industry was truely set up with the entry of few enter-
prising Muslim families. They introduced new tools and
diversified production. The iiarket for the handicrafts items
of Moradabad was widened with the impact of their knowledge
of Muslim culture as well as the need of the foreign countries*
Different varities and shapes of house-hold articles that Were
in demand in the foreign markets were produced at Moradabad.
Brass -ware Industry of Moradabad today ranks second
among the handicraft items exported from India. Though this
craft is spread over so nany parts of the country, but Uttar
Pradesh is the most important centre in India. Moradabad,
Mirzapur, Hathras, Aligarh, Jalesar are some of the important
centres of brassware in the state* Among these/ Moradabad
is the biggest centre of brassware industry. The share of
Moradabad in total production and export of brass-ware in
the country is about 80% and 75% respectively. In the
export of novelties and fine art wares/ share of Moradabad
2
is more than 85%.
The following Table shows the growth of t h e i n d u s t r y ;
TABLE :Mo. 2
GROT^H OF THE BRASSWARE INDUS TRY
Process 1940 1950 i960 1970 1980 1988 Total
Making of
Gulli 14 17 24 33 42 15 145
Making of
Patterns 3 4 6 8 11 4 36
Sheet work 8 8 12 11 18 12 69
Moulding 48 57 81 108 128 69 491
Soldering 23 29 41 56 58 20 227
Scraping 70 86 123 147 195 88 709
Engraving 7 8 11 21 16 10 73
Lacquering 149 179 253 326 342 109 1/358
Electro-
plating 12 15 22 29 30 18 126
Polishing 13 15 21 30 33 26 138
Total 347 418 594 769 873 371 3/372
Percentage 10.29 12.40 17.62 22.80 25.89 [Link] 100
S o u r c e * D a t a c o l l e c t e d b y t h e c o u r t e s y of D i s t r i c t I n d u s t r y
O f f i c e r / Moradabad and P e r c e n t a g e c a l c u l a t e d by t h e
author.
1. Infortration c o l l e c t e d by the c o u r t e s y of Brassware Manufac-
t u r e r s / E x p o r t e r s A s s o c i a t i o n / Moradabad.
2. Ibid.
8
The t a b l e shcjws t h a t the 347 crores 1029 percent
u n i t s were e s t a b l i s h e d in 1940. During t h e subsequent decade
in 1950, 418 or 12.40 per cent u n i t s were s e t up with t h e
average r a t e of 1.2% Per annum-. In thefolowing decade/ i960,
t h e r e were 594 or 17.62 per cent u n i t s / r a i s i n g the r a t e of
1.8 Per annum. During 1970 as many as 769 or 22.80 per cent
new e s t a b l i s h m e n t s were found with annual r a t e of 2'3% Per
annum. The next decade/ 1980 witnessed the f u r t h e r 873
establishments accounting for 25.89 per cent of the e x i s t i n g
u n i t s w i t h average r a t e of 2.6% per annum. During the Period
of 1988, the s e t t i n g up 371 or 11.00 per cent u n i t s , lowered
t h e r a t e of growth t o 1.6% per annum. I t i s therefore*
evident from the above t a b l e t h a t over decades the i n d u s t r y
has recorded a ten fold developnent/ which i s i n d i c a t e d by
t h e i n c r e a s i n g number of e s t a b l i s h m e n t s in each decade s i n c e
1940. The process wise d e t a i l s r e v e a l t h a t t h e growth has
been more pronounced p a r t i c u l a r l y in l a c q u e r i n g , scraping
*
and moulding. The grcwth may largely be attributed to the
expansion of the foreign market for Indian brasswares.
ORGANISATIONAL STRUCTURE OF THE INDUSTRY
Pattern of Proprietorship:
Mostly units engaged in the production of brassware
have been organised on single ownership basis. This is the
dominant form of o r g a n i s a t i o n . Only 15% of the u n i t s were
run on the p a r t n e r s h i p b a s i s . I t may be emphasized t h a t the
i n d u s t r y organised mainly on the p r o p r i e t o r y b a s i s , connotes
t h a t i t i s not only providing employment t o s e v e r a l thousand
of craftmen a t Moradabad but as a l s o provided an e f f e c t i v e
instrument for mobilising the p r i v a t e resources i n t o produc-
t i v e channels/ which otherwise might have remained hoarded.
Although s o l e - p r o p r i e t o r y form of o r g a n i s a t i o n i s
t h e dominant form of o r g a n i s a t i o n of the brassware i n d u s t r y
a t Moradabad, yet a l a r g e majority of u n i t s have t o depend
f o r supply of both work and m a t e r i a l s on d e a l e r s . Their
mode of operation i s , u s u a l l y speaking, of s e r v i c i n g n a t u r e
r a t h e r than o r g a n i s a t i o n of t h e i r own independent p r o d u c t i o n .
Almost 65%.2 of the e x i s t i n g u n i t s s o l e l y operate a s
servicing units rather as independent manufacturing units-
These units have to depend on dealers both for work and
3
materials. 20% of the units presently engaged in the pro-
duction of brasswares undertake the work on their own account.
A negligible Percentage of such units also carry out work
on their cwn account as well as on contract or on wages.
1. Information collected by the courtesy of District Industry
Office, Moradabad.
2. Ibid.
3. Ibid.
lO
There I s a s p e c i a l c l a s s of workers a t Moradabad,
known as c o n t r a c t o r s . They do not have workshops of t h e i r
own nor do they undertake the r i s k s of p r o d u c t i o n . Mainly
they function as a middleman taking orders from the d e a l e r s
of e x p o r t e r s and forming out the work t o small manufac-
t u r i n g u n i t s on c o n t r a c t b a s i s .
Venue of Workt
I t i s observed t h a t the one~third of the u n i t s c a r r y
out work a t the r e s i d e n t i a l premises. This i s p a r t i c u l a r l y
s o with regard t o scraping work, and t o c e r t a i n e x t e n t i n
r e s p e c t of engraving p r o c e s s . There a r e conmon sheds a l s o
which a r e u t i l i s e d on a r e n t s h a r i n g b a s i s . About half of
the u n i t s engaged in e l e c t r o p l a t i n g work a r e located in
common s h e d s , such a sharing of common sheds for production
purposes i s not so common in other processes of the i n d u s t r y .
About more than o n e - t h i r d of the u n i t s have t h e i r individual
p l a c e of work s e p a r a t e l y from t h e i r r e s i d e n t i a l p l a c e s .
Period of Work;
Except the weekly holidays and f e s t i v a l s , the u n i t s
a r e engaged in production for whole of the y e a r . Except
during r a i n y season, the production a c t i v i t y maintains the
tampo throughout the y e a r . People working in the moulding.
11
polishing and engraving sectors find work for about nine
months in the year. While workers engaged in making gulli
and lacquering find work for about eight months. In the
remaining sectors the number of work days does not exceeds
275 days.
Motive Power t
In the brassware industry, much of the work is done
by hand. Nearly 9C^ of the units carry out their work
manually. It is only in polishing, sheet-work, scraping,
electroplating where we find the use of electric power. A
big majority of the units are not registered under any act
And very few units come under the Factories Act.
Wages to the workers '•
The peice rate system is prevalent in the industry.
The average daily wages of a worker range between Rs. 15/-
and Rs. 40/- . Labour charges for each manufacturing process
is mostly predetermined by prevailing trade practices and
also by Karkhanedars, engravers, manufacturers. In fact,
wages for the similar work also differ according to weight
and size of the article made and the skill of the artisans.
1. Information collected by the courtesy of District Industry
Office, Moradabad.
2. Information collected by the courtesy of District Labour
Office, Moradabad.
12
Government Policy Tcjwards t h i s I n d u s t r y :
The Government of Uttar Pradesh i s a s s i s t i n g the
promotion of the brassware i n d u s t r y a t Moradabad. Various
Government agencies a s s i s t i n g the development of brassware
i n d u s t r y a t Moradabad a r e » -
1. U.P. s t a t e Brassware Corporation Ltd.
2. S t a t e D i r e c t o r a t e of I n d u s t r i e s *
3. All India Handicrafts Board-
4. U.P. Government's q u a l i t y marketing Centre^
5. Small I n d u s t r i e s development O r g a n i s a t i o n s .
The p r i n c i p a l agency r e s p o n s i b l e for the development
of small and c o t t a g e i n d u s t r i e s i s the S t a t e D i r e c t o r a t e of
I n d u s t r i e s in U.P. I t r e g i s t e r s u n i t s / checks and enforces
various r u l e s and r e g u l a t i o n s formulated by U.P. Government
from time t o t i m e .
U.P. s t a t e Brassware Corporation L t d . / i s another s t a t e
l e v e l agency which solves t h e various problems faced by the
brassware i n d u s t r y a t Moradabad.
Quality marketing c e n t r e working a t Moradabad i s
under the S t a t e D i r e c t o r a t e of i n d u s t r i e s keeper. This
c e n t r e has been s e t up t o t e s t q u a l i t y of t i n p l a t i n g on
brass-•ware*
13
All India handicrafts board looks after the design
and development requirements of certain industries in U.P.
including brassware industry at Moradabad. Keeping in view
that export potentialities of the brassware industry of
Moradabad/ it is desirable that the design and development
centre of all India handicrafts board should devote more
attention to this export oriented industry.
On the basis of the above discussion it can be
concluded that no authentic information regarding the esta-
blishment of the brassware industry is available/ but it is
generally believed to to few centuries old. The number of
units engaged in the production of brass-ware at Moradabad
is 3/372 which are mostly organised in tlie form of sole
proprietory concern and only 15% of the units are run on
partnership basis. About 65% of existing units sole^ly operate
as servicing units rather as independent manufacturing units.
And 20% units engaged in the manufacturing of brass-ware
undertake the work on their own account.
One-third of_ the units carry out work at the residential
premises. There are common sheds which are utilised on a
rent sharing basis and serve as a joint place of work. More
than one-third units have their individual place of work
separate from their residential places.
14
A l l the u n i t s remain engaged almost the whole y e a r .
The average number of days work n e a r l y 275 d a y s .
In the brassware industry^ much of the work i s done
by hand. Nearly 90% of the u n i t s c a r r y out t h e i r work
manually* Only for p o l i s h i n g / sheet work, s c r a p i n g , e l e c -
t r o p l a t i n g / the e l e c t r i c power i s used.
Piece wage system i s p r e v a l e n t i n t h e i n d u s t r y as
moat of the processes involved in the production of b r a s s -
wares a r e undertaken on c o n t r a c t b a s i s . The average d a i l y
wages of a worker range between [Link]/- t o 4 0 / - , Wages for
the s i m i l a r work a l s o d i f f e r according t o s i z e and weight of
the a r t i c l e s made and s k i l l of a r t i s a n s .
The Government of India has been persuing the develop-
ment of c o t t a g e and small i n d u s t r i e s and a number of measures
have been taken t o a s s i s t the growth of such i n d u s t r i e s in the
country.
The U.P. s t a t e Brassware Corporation L t d . / the S t a t e
D i r e c t o r a t e of I n d u s t r i e s , the All India Handicrafts Board/
U.P. Government's Quality Marketing c e n t r e and the small
I n d u s t r i e s Development O r g a n i s a t i o n s , a r e the p r i n c i p a l
agencies a s s i s t i n g t h e development of brassware i n d u s t r y '
of Moradabad.
15
Having examined the establishment and growth, organisa-
tional struct^ure. Government policy towards the brassware
industry of Moradabad/ the next chapter deals with the various
agencies for the development of Brassware Industry.
C H A P T E R - I ^
"ROlJE OF VARIOUS AGENCIES FOR THE
DEVELOPMENT OF BRASSWARE INDUSTRY"
ROLE OF VARIOUS AGENCIES FOR THE
DEVBLOPMENT OF BRASSWARE INDUSTRY
The inevitability of export promotion for the country,
the Government of India has established an elaborate insti-
tutional structure for the same. A number of organisations
and commodity Boards specialising in selected commodities.
have been set up by the Government to augment exports from
India. A series of organisations like State Brassware
corporations of India* Export Promotion Council/ Trade Fair
Authority of India, Trade Development Authority, A H India
Handicrafts Board.':, Handicrafts and Handloom Export Corpora-
tion of India, etc. have come up to assist the export promo-
tions and to fetch the increasing foreign exchange resources
for the accelerated pace of our economic development.
U.P. state Brasawarej corporation Ltd:
[Link] Brassware Corporation Ltd., plays a very
important role- It was established in 1974 under the company's
Act 1956 in Moradabad. The main object for which the company
is established are :-
l) To aid, counsel, assist, finance, protect and
prpmote brassware and E P N S small Industries in the
State of Uttar Pradesh whether owned or run by company^
16
17
firm or individual and to provide them with capital
credit/ means/ resources/ raw materials and technical
and managerial assistance.
2) TO enter into contract with Government of India
and the State Government in all their departments and
corporations and other subsidiaries and branches and
from agency or offices these of having the necessary
powers for fabrications, manufacture/ assembly and
supply of brass and E P N S goods/ materials and articles
and to arrange for the Performance of such contract.
3) To take all the necessary and requisite steps to
utilise the potential productive capacity of plants
operated by small industrial concerns in brassware
and E P N S moulding, shaping, scraping, engraving, fini-
shing and electroplating.
4) To certify the appropriate Government Officers
with respect to the competence as to capacity and credit
of any small industrial concern or group of such concern
to Perform in specific government contract.
5) To obtain from any Government Ministry departmental
establishment or agency such reports concerning the
giving of contracts and sub-contract marking of loans to
business concerns.
18
6) To e f f e c t c o - o r d l n a t i o n between l a r g e i n d u s t r i e s
and small i n d u s t r i e s by s u i t a b l e methods# enabling
small i n d u s t r i e s t o manufacture s a t i s f a c t o r i l y such
p a r t s / a n c i l l a r i e s and components and other a r t i c l e s
as may be required by l a r g e i n d u s t r i e s .
7) To promote and operate schemes for development of
small i n d u s t r i e s of brassware i s the S t a t e of U.P. for
t h a t purpose to prepare or get prepared r e p o r t s , blue
p r i n t s , s t a t i s t i c s and other informations.
8) To c a r r y on the biasiness of dealders in brassware
and t o o l s and machinery, b u i l d e r s hard--ware and d e s c r i p -
t i o n s for the development of brassware i n d u s t r y .
9) TO manufacture, buy, s e l l , import, e x p o r t , i n s t a l l ,
work and g e n e r a l l y d e a l in any p l a n t , machinery, t o o l s
m a t e r i a l s goods or things or any d e s c r i p t i o n which in
the opinion of the company, may be conveniently d e a l t
w i t h by the company in connection with any of i t s o b j e c t s .
10) To e n t e r i n t o any p a r t n e r s h i p of arrangement for joint
working in b u s i n e s s , s t o r i n g of p r o f i t s , pooling of any
i n d u s t r i a l u n d e r t a k i n g , with any of the company, firm,
a Person.' c a r r y i n g on or engaged in manufacture or b u s i -
ness with in the object of t h i s company.
19
11) To e s t a b l i o h , p r o m o t e / s u b s i d i a r i e s and otherwise
a s s i s t any company or companies for the purpose of
s e t t i n g up any i n d u s t r y or running any i n d u s t r i a l under-
t a k i n g , a c q u i r i n g any p r o p e r t y .
12) To s e l l / dispose of, h i r e or t r a n s f e r the business
property and undertaking of the company or any p a r t
thereof for cash, stocks or shares of any other company
or for any other c o n s i d e r a t i o n which the company may see
f i t to accept.
The f i g u r e of Raw m a t e r i a l sha^^r t h a t the Brassware
Corporation Ltd. of Moradabad s i n c e l982~83 has been achieving
much more than t h e i r s e t t a r g e t s . Their performance g r a d u a l l y
picked up i n l 9 8 2 - 8 3 . The t a r g e t was s e t a t 200 lakhs but the
achievement was 2O1 lakhs whereas in 1986-87 the t a r g e t was
800 lakhs whereas the achievement was more than double i . e «
1,650.52 l a k h s .
As far as export t r a d e i s concern the perfoririance of
the corporation i s not s a t i s f a c t o r y . In 1982-83 the t a r g e t
of export was 50 lakhs while the achievement was mere 6.40
lakhs and s i n c e then the trend sho^;s t h e d e c l i n i n g t a r g e t s
as w e l l as achievements. In the year 1986-87 the t a r g e t as
w e l l as the achievement came down sharply as the t a r g e t was
2.00 lakhs and achievement was only [Link] l a k h s .
20
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21
The Performance of U.P. S t a t e Brassware Corporation
Ltd. r e g a r d i n g inland t r a d e i s a l s o not s a t i s f a c t o r y . Except
the year 1982-83 the achievements a r e d e c l i n i n g . During t h i s
year (1982-83) the t a r g e t was 30 lakhs whereas the a c h i e v e -
ment was 31.51 l a k h s , whereas during the year 1986-87 the
t a r g e t was 15 lakhs and the achievement was low a t 9.50
lakhs.
As far as the f i n a n c i a l a s s i s t a n c e t o the exports and
a r t i s a n s i s concerned, no conclusion can be drawn as t h e data
i s a v a i l a b l e for only one year - 1982-83. The t a r g e t of
a s s i s t a n c e was 1 l a k h , whereas the r e a l a s s i s t a n c e provided
was only 0,60 l a k h s .
The same i s the case with supply of machinery on h i r e
purpose scheme. Data i s a v a i l a b l e only for the year 1982-83.
In t h i s p a r t i c u l a r year the t a r g e t s e t was 1.50 lakhs and the
achievement was Rs. 6.52 lakhs but as t h e data i s a v a i l a b l e
only for one year we can not np>noralioe t h i s t r e n d .
Working of the U.P. s t a t e Brassware
corporation Ltd.:
U.P. s t a t e Brassware corporation of India with the
a s s i s t a n c e of Government of U.P. i s working on t h e following
lines :-
22
1) U.P. S t a t e Hras£3warG Corj^oration look up tho matters
o£ providing b a s i c raw m a t e r i a l a t i n t e r n a t i o n a l p r i c e s t o
e x p o e r t e r s with the Government of I n d i a , i t i s heartening to
note t h a t the Government of India appears to be s e r i o u s l y
considering implementations of t h i s s u g g e s t i o n .
2) To provide l a n d - f r e e m e t a l , i t has put a non-ferrous
r o l l i n g m i l l which has s t a r t e d supplying brass and EPNs
s h e e t s from 14th A p r i l , 1983 to the t r a d e . The m i l l has been
s e t up with an investment of Ks. 3.73 c r o r e s a t Moradabad.
3) A design and development c e n t r e s i s being s e t up. This
c e n t r e / in a d d i t i o n t o evolving new design would a l s o make
prototypes t o be given the t r a d e a t subsidised r a t e s .
4) To boosfc exports and t o give s p e c i a l a t t e n t i o n s t o i t
Government of U.P. has created an export promotion development
department as a s e p a r a t e department of the Government of U.P.
5) Government of U.P. i s considering a proposal t o provide
improved t o o l s and p l a n t s to tho a r t i s a n s a t the subsidised
rates.
6) The U.P. S t a t e Brassware c o r p o r a t i o n , in c o l l a b o r a t i o n
with a l l India Handicrafts Board, i s p u t t i n g up a metal h a n d i -
c r a f t s e r v i c e c e n t r e a t Moradabad a t a estimated cost of
Rs. 1,5 c r o r e s . This w i l l have e l e c t r o p l a t i n g and p o l i s h i n g
23
units/ artisans can avail its service on reasonable payment.
It will also have a section imparting the training to the
artisans in these trades •
7) The industrial estate would be an'ideal place for
bonded proceeding complex where in the imported raw material
at international price could be made available to users/
exporters obviously it will result in some control over
production and utilisation of imported raw material. This
would again be an ideally suited place for the completion
of formalities at a single point.
8) Technological improvements would be provided by the
design development centre.
9) The problem of excise duty on handicraft good is also
taken up by the U.P. Government with the Government of India.
10) Minerals & Metals Trading Corporation t)f India has opened
its depot at Moradabad recently whichwill be managed by U.P.
State Brassware Corporation.
11) It is proposed to establish an export complex at
Moradabad providing all the facilities to the exporters at
one place•
12) U.P. State Brassware corporation is establishing a
big industrial estate for such artisans adjoining to the city.
24
This in fact will be a new tcjwnship for the artisans
equipped with all modern facilities in healthy surroundings.
The artisans will be provided with residence cum workshed
in open area with parks, wide streets, all the infrastruc-
ture, such as electricity, water supply e t c The industrial
estate will also consist of an electroplating plant and a
lacquiring plant. Banks, administrative officers of the
exporters. Post Office will also be located. There will
be a hospital for the artisans and also educational facili-
ties. The U.P. state Brassware corporation intends to
extend township to accommodate more and more artisans and
thus in due course of time a model town for the brass arti-
sans of Moradabad will come into existence. This will not
only improve the lot of the artisans but will also result
in preservation of the artistic tradition and bulk production
of the required items.
Following table shows the achievements of U.P. state
Brassware Corporation.
TABLE No. 2
TI-TREE YEAR ACHIEVEMKNTS_ 0P_ INDUSTRIAL ESTATE
(Peetal Nagari)
[Link]. Details 1986-87 1987-88 1988-89 Total
1. c o n s t r u c t i o n of
residential complex 305 259 - 564
2. Construction of
workshop 88 10 98
3. Distribution 80 112 133 325
4. Possession - 66 8 74
source; Data collected by the courtesy of U.P. State Brassware
Corporation, Ltd., Moradabad.
75
The above table reveals that the Corporation construc-
ted 564 residential complex and 98 workshops for the artisans
in which [Link] complex, constructed in 1986-87 and
2,59 in 1987-88, while the construction of 88 and 10 work-
shops has been completed in the same years (1986-87 and
1987-88). Among these the corporation distributed 80 residen-
tial complex and workshops (both) in the year 1986-87, 112
in the year 1987-88 and 133 in the year 1988-89. while the
artisans occupied only 66 compJox and v/orknhops in 1987-88
and 8 complex and workshops in 1988-89. It shows that the
artisans possessed the total 74 residential complex as well
as workshops as against the both distributed 325. It shows
that the artisans are occupying the both in the Industrial
Estate gradually, or not interested to go, perhaps, because
the Industrial Estate is far from the city and in the isolated
place *
Export Promotion council:
Export Pranotion Council plays a very important role
for the development of Brassware industry of Moradabad. At
present there are 19 councils in India. Of these. Handlooms
and handicrafts exports promotion council is looking after
the export promotions of brasswares. This council was set
up with the objective of creating export consciousness in
26
t h e country promotional a c t i v i t i e s abroad/ general p u b l i c i t y /
establishment of o f f i c e s abroad, implementation of export
a s s i s t a n c e scheme e t c . The council c o l l e c t s the commercial
information for export of a r t b r a s s w a r e . The Information
c o l l e c t e d includes imports and productions of different
c o u n t r i e s / consumer p r e f e r e n c e s , m ^ k e t i n g opportunifes, media
of p u b l i c i t y a v a i l a b l e in tho country/ p r i c e s , d i s t r i b u t i o n s
channels e t c . I t a l s o makes a v a i l a b l e t o the e x p o r t e r s the
l a t e s t Government r u l e s and procedures about the various
a s p e c t s of e x p o r t s .
Trade Fair Authority of India :
I t organises Indian p a r t i c i p a t i o n in e x h i b i t i o n s and
t r a d e f a i r s abroad for d i s p l a y a t t h e d i f f e r e n t universal
e x h i b i t i o n s and f a i r s . The Trade F a i r Authority of India
i t s e l f buys e x h i b i t s on behalf of the Government of India
in the nature of h a n d i c r a f t s and d e c o r a t i v e s . In r e s p e c t
of export e f f o r t s through p a r t i c i p a t i o n s in f a i r s and e x h i -
b i t i o n s abroad/ Trade F a i r Authority of India i s playing a
dynamic r o l e t o a c c e l e r a t i n g the export abroad.
All India Handicrafts Board :
The A l l India Handicrafts Board/ which was s e t up i n
1952/ undertakes a number of measures for the export promo-
27
tion of India handicrafts including brasswares. Such as
participation in trade fairs exhibitions, publicity through
documentry films/ calendars, special illustrated catalogues
on different crafts. It also publishes posters at the time
of exhibitions and other important occasions. It also gives
National Awards to exporters of handicrafts for outstanding
Performance in exports on the occasion of the Annual National
Awards Ceremony to honour outstanding masters - craftsmen.
Trade Development Authority:
Trade Development Authority of India is promoter of
India's exports. It gives help to individual exporters,
especially to those in the small Scale Sector. It is the
only national organisation which renders,under one roof, a
complete package of service to an entrepreneur. It locates
and contacts foreign departmental stores and import houses.
The Trade Development Authority also helps in arranging
necessary foreign exchange for the clients for export
promotion travels and publicity purposes. It also dissemi-
nates informations to exporters and other interested jxirties
and publishes abroad Indian products and their supply-sources
Handicrafts & Handloom Export corporation
of India Limited;
The Handicrafts and Hand loom Export corporation of
India Limited is a fully ovmed subsidiary of the State
28
Trading Corporation of India Ltd. I t undertakes/ among
other t h i n g s / the exports of brass--wares of Moradabad./
which have l a r g e export p o t e n t i a l i t i e s abroad. In order
t o p r o j e c t a good image of I n d i a ' s craftsmanship in foreign
c o u n t r i e s / the Handicrafts and Handloom Export corporation
has s e t up show-rooms a t New York, Japan/ Nairobi and P a r i s .
The Handicrafts and Handloom Export Corporation has e s t a -
b l i s h e d a p r e s t i g e image in the U.S.A. and V/est European
markets for Indian b r a s s - w a r e s . The Corporation's offices
in India a r e equipped t o handle a vast range of merchandise
of exportable q u a l i t i e s produced anywhere in the c o u n t r y .
Abroad/ the net work of o f f i c e s / show-rooms/ shops and ware-
houses t h a t have been developed in France* West Germany/
U.S.A./ Japan e t c . / are in touch with the leading importers/
departmental s t o r e s / wholesalers e t c . and hence c o n t r i b u t i n g
towards the eve^ i n c r e a s i n g exports of brass-wares from
Moradabad.
From the foregoing d i s c u s s i o n i t can be concluded
that U.P. S t a t e Brass-ware Corporation of India L t d . / a s s i s t
finance and p r o t e c t these u n i t s and provide them c a p i t a l
c r e d i t / means/ r e s o u r c e s / raw m a t e r i a l / t e c h n i c a l and
managerial a s s i s t a n c e and t o promote and operate schemes
for development of small i n d u s t r i e s of Brass-wares. They
a l s o e n t e r i n t o any p a r t n e r s h i p of arrangement for joint
29
working in business/ sharing of profits, with any other
company or firm. The corporation is collaboration with All
India Handicrafts Board is putting up a metal handicraft
service centre at Moradabad at a estirrated cost ofRs.1.5
crores.
U.P. state Brass-ware Corporation has established a
big industrial estate for such artisans at a place adjoining
to the city. It is a new township. The artisans are provi-
ded with residence-cum-workshed in open area with all the
infrastructure, such as electricity, water supply etc. The
corporation constructed 564 residential complex and 98 work-
shops for the artisans* whereas corporation distributed 325
residential complex and workshops.
At present there is l9 promotion councils in India
which play an important role for the development of brassware
industry at Moradabad. These councils were set up with the
objective of creating export.
The Trade Fair Authority of India is playing a dynamic
role/ it organises Indian participation in exhibition and
trade fairs abroad by displaying the Moradabad handicrafts
at different universal exhibitions and fairs.
lO
Of these/ All India Hanaicrafto Bcxird/ Trade Develop-
ment Authority-/ Handicrafts and Handloom Export Corporation
have played a prominent role in promoting the exports of
Moradabad brasswares.. After studying the role of various
agencies in this chapter, the third chapter has been devoted
towards the role of Brassware Industry in the economic
development.
2 I i A . P T E R - III
"ROLE OF BRASSWARE INDUSIRY IN THE ECONOMIC DEVELOPMENT"
ROI.E OF D R A S S W A R E TNnlJSTRY TN
THE ECONOMIC "" DT-n/ELOPMENT '
The b r a s s w a r e i n d u s t r y o c c u p i e s a u n i q u e position
a n d i m p o r t a n c e i n t h e economy of t h e c o u n t r y . In t h e r e c e n t
years* this i n d u s t r y has been e n c o u r a g e d by t h e Government
t o improve i t s P e r f o r m a n c e . The v o l u m e a n d r a n g e of products
nanufacturedy e m p l o y m e n t p r o v i d e d and t h e v a l u e of e x p o r t s by
brassware i n d u s t r y h a v e grown s u b s t a n t i a l l y d u r i n g t h e last
d e c a d e a s i s e v i d e n t f r o m t h e f o l l o w i n g e x p l a n a t i o n of the
important variables of growth.
Incortie Generation:
The a r t i s a n s of b r a s s w a r e i n d u s t r y of Moradabad c a n b e
classified i n t o two c a t e g o r i e s •*
One, c o n t r a c t wage w o r k e r s who w o r k w i t h t h e i r o^/n tools
and g e t raw m a t e r i a l s e i t h e r from t h e d e a l e r s or S t a t e Brass-
w a r e C o r p o r a t i o n of I n d i a L i m i t e d . The w a g e - r a t e i s b a s e d on
c o n t r a c t s y s t e m p e r k e l o g r a m of m e t a l w o r k e d o r p i e c e rate
system.- The c h a r g e d e p e n d s u p o n t h e g u a l i t y a n d q u a n t i t y of
the articles.
A n o t h e r t y p e of a r t i s a n s a r e t h o s e who a r e h i r e d by
t h e f a c t o r y o w n e r s or K a r k h a n e d a r f o r m a n u f a c t u r i n g of t h e '
31
32
products. Usually/ the skilled labour is paid at the rate
of Rs. 50/- to 80/- Per day and the unskilled labour at the
rate of Rs, 15/- to Rs. 40/- per day.
The following table reveals the monthly income of
artisans t
TABLE No-. 1
Industry {[Link] sample8No. of {Wage paid{ Average wage
{units {workers { { Per worker (in Rs)
Brassware
Industry 50 400 4/72,500 1/181
Moradabad
sourcet Field Investigation made by the author.
The above table shows the monthly income of both skilled
and unskilled workers for 50 sample units. in these units 400
workers are employed who got Rs. 4/72/500/- and the average
income of a worker is Rs. 1/181/- per month.
Employment:
3
The brassware industry provides employment to [Link] lakhs
Persons. The majority of the workers are hired labourers and
1. Information collected by the courtesy of District Labour
Office/ Moradabad.
2. Ibid.
3. Information collected by the courtesy of Manufacturers/
Exporters Aosociations , Moradaba(3.
33
family wcrkera a r e r e l a t i v e l y less. The l a b o u r mix of the
i n d u s t r y i n c l u d e s m a l e s , f e m a l e s and c h i l d r e n . Of this
a b o u t 76% c o n s t i t u t e m a l e w o r k e r s , w h i l e a b o u t 19% c o n s t i t u t e
c h i l d r e n b e l o w t h e a g e of 15 y e a r s . A l i t t l e more t h a n 5%
of t h e w o r k e r s a c c o u n t e d w o m e n ' s a t t e n d e d m a i n l y t o gully
making and s c r a p i n g workers.
The f o l l o w i n g t a b l e shows tt>e e m p l o y m e n t of the
industry :
TABLE NO. 2
DISTRIBUTION OF TOTAL EMPLOYMENT DY TYPE OF WORKERS
Type of w o r k % Family % Hired % T o t a l No.
workers workers workers
Making of
Gulli 56.13 5,253 43.86 4,104 100 9,357
Making of
Pattern 73.45 5,240 26.54 1,894 100 7,134
Sheet work 44.73 4,574 55.26 5,650 100 10,224
Moulding 46.99 6,993 53.00 7,886 100 14,879
soldering 36.02 3,047 63.97 5,410 100 8,457
Scraping 44.08 7,328 55.91 9,295 100 16,623
Engraving 49.67 3,347 50.32 3,391 100 6,738
Lacquering 50.98 9,616 [Link] 9,246 100 18,862
Electro-
plating 58.80 4,560 41.19 3/194 100 7,754
Polishing 41.50 4,139 58.49 5,833 100 9,972
49.17 54,097 50.82 55,903 lOO 1,10,000
Source! Data c o l l e c t e d by the courtesy of D i s t r i c t Labour Office,
Moradabad.
J4
On the whole the lacquering process employed the
largest number of i/^orkers relatively with other processes.
Engraving and scraping employed about 6/738 and 16,623
Persons respectively. About 7/134 persons are estimated
to be engaged in making of patterns. It may be observed
that children predominate among the gully makers through
their role iS/ as helpers only. Moulding as well as engra-
ving work also employed a large number o£ children.
Looking from another point of view, it may be observed
that more than half of the employed persons were hired for
•work on some wage rate basis, whereas the rest constituted
members from the families which own the establishments.
Pattern making is almost exclusively confined to the family
workers, conversely/ sheet worker, lacquering as well as
polishing depended mainly on the hired labour. The average
employment per establishment works out to be about 8 persons,
of which nearly half constitute family workers and the rest
hired labour•
Production;
In Moradabad, since the medieval period/ artisans have
been producing various art pieces of distinctive quality
mainly consisting of decorative items. They produce both
35
p l a i n as w e l l as engraved metal a r t wares. The items t h a t
a r e more popular and bear a d i s t i n c t i v e c h a r a c t e r i s t i c s of
t h e a r t t r a d i t i o n s of Moradabad a r t i s a n s a r e flower cases
in various s i z e s / b e a u t i f u l t a b l e t a p s / t r a y s and candle
stands. Items l i k e a s h t r a y , bear-niugs, pag t a b l e s # bookend
e t c . of c o n s i d e r a b l e v a r i e t y a r e a l s o produced by the
artisans, some of the engraved items a r e enamelled by
coloured l a c thus giving a l u s t r e and c o l o u r f u l appearance
t o the d e c o r a t i v e p i e c e s , such items a r e mainly popular in
the middle e a s t and some European c o u n t r i e s .
Moradabad i s a l s o a c e n t r e for the production of
electroplated nickle silver (EPNS) planes and c o n s i d e r a b l e
q u a n t i t y of these items a r e exported t o the various c o u n t r i e s
The t o t a l production i s estirrated a t around Rs. 2 0 0 / -
2
c r o r e s out of t h i s over 50;^ in exported and the remaining
c o n s i s t i n g of h a n d i c r a f t s and u t e n a i l s a r e for home consump-
tion.
Each manufacturing process has i t s own cycle of p r o -
d u c t i o n / from t h e i n i t i a l s t a g e t o . the f i n a l stage of
production/ i t takes a t o t a l time of about 6 weeks.
In each processing stage through which m a t e r i a l p a s s e s ,
adds some value t o the c o s t of raw m a t e r i a l . The highest
1. Information collecyed by the courtesy of Manufacturers/Expor-
t e r s Association/ Moradabad.
2. Ibid.
36
percentage of added value of product is shared by the
processes of pattern making, moulding, soldering and scra-
ping which takes together works out to 54 percent helps it
to acquire its actual shape. The next highest percentage
of added value is contributed by engraving process being
about 2 5 percent which gives the product its article beauty.
The third process is polishing \*hich adds about 13 Percent
to the value of the product. And the remaining 8 percent is
contributed by the processes of lacquering and electroplating.
Development of New Product:
Development of product usually involves six stages :
1. New ideas
2. Screening of ideas
3. Business analysis
4. Product development
5. Test imrketing
6. commercialisation of the product.
The main source of inflow of ideas may be professional
designers, customers, dealers etc. at present the sources of
inflow of ideas for product development of Moradabad are the
foreign buyers, local artisans and design development centres
of the state and central Governments. After evaluation the
37
ntiarket p o t e n t i a l of t h e p r o d u c t , c a p i t a l i n v e s t m e n t / rate
of r e t u r n on c a p i t a l , the product ideas i s duly converted
into physical product. After t e s t marketing necessary
m o d i f i c a t i o n a r e rrade i n t h e p r o d u c t t o u n d e r t a k e mass p r o -
d u c t i o n s , and d i s t r i b u t i o n s of t h e p r o d u c t . In t h e B r a s s -
ware I n d u s t r y of Moradabad, where most of t h e a r t i s a n s are
i l l i t e r a t e and e c o n o m i c a l l y weaker a r e u n a b l e t o u n d e r t a k e
a s c i o i t i f i c p r o c e s s of p r o d u c t d e v e l o p m e n t . Although some
m o d i f i c a t i o n s i n t r a d i t i o n a l d e s i g n and s h a p e s of b r a s s w a r e s
r e c e n t l y been w i t n e s s e d i n t h e i n d u s t r y .
The f o l l o w i n g t a b l e shows t h e p r o d u c t i o n of b r a s s w a r e
d u r i n g t h e l a s t one d e c a d e :
TABLE No. 3
Year Value of P r o d u c t i o n ( i n C r o r e s )
1977-78 20.86
1978-79 41.6
1979-80 135.69
1980-81 110.92
1981-82 130.45
1982-83 112.12
1983-84 106
1984-85 134.1
1985-86 156.82
1986-87 177
s o u r c e t Data c o l l e c t e d by t h e c o u r t e s y of A l l I n d i a
H a n d i c r a f t Board, R e s e a r c h S e c t i o n , N.D.
(From 1977-78 t o 1 9 8 6 - 8 7 ) .
38
The t a b l e shows t h a t t i l l 1979-80, the production
had been i n c r e a s i n g g r a d u a l l y but i t f e l l suddenly i n during
1980-81 as a r e s u l t of communal r i o t s , which continued a t
Moradabad from August l980 - t o November 1980. The production
has c o n s t a n t l y kept on i n c r e a s i n g except in 1983-84.
Foreign Exchange Earnings :
I t i s an a t a b l i s h e d fact t h a t the export of Art Metal
Wares i s a very important source of foreign exchange t o the
country and i t should not be allowed t o d i m i n i s h . I t i s the
s p e c i a l i t y with t h i s i n d u s t r y alone t h a t t h e export mainly
depends upon the hand work of the craftsmen who a r e engaged
day and night in manufacturing and i n t r o d u c i n g new design
and p a t t e r n s which s u i t s the market of every country in t h e
world. These a r t i s a n s have got h e r i d e t o r y knowledge/ work-
manship, s k i l l and know-how required for developing the
designs arid p a t t e r n s and manufacturing them a c c o r d i n g l y . The
e x p o r t e r s c o l l e c t these samples and designs from these a r t i -
sans and send t o the foreign buyers for the approval and
acceptance.
The i n d u s t r y of Moradabad c o n t r i b u t e s n e a r l y 80% of
exports from the c o u n t r y . The t o t a l export of handicrafts
from India i s Rs. lOO c r o r e s .
1. Data c o l l e c t e d by the courtesy of Brassware Manufacturers/
Exporters A s s o c i a t i o n , Moradabad.
39
At present/ brasswares of Moraddbad are being exported
to more than hundred countries of different economic regions.
Our brasswares are being derranded both by developed as well
as developing countries. Among the developed countries,
U.S.A./ U.S.s.R./ U.K./ France/ West Germany, Japan, Austra-
lia, Canada etc. Among developing countries, Saudi Arabia,
Kuwait, U.A.E., Hong Kong, Iran, Libya, Taiwan, Nigeria,
Tanzania etc. are our customers. In fact, India stands in a
position to compete with rival countries as she passes good re-
sources potential. Moreover, global developments such as
rising trends in the cost of production of principal compe-
ting countries and the developmont boom particularly in the
developing countries of the Gulf and the Middle East region
provide us golden opportunities to minimise the impediments
and boost up exports of brass wares from Horadabad.
It is, therefore, certain that our brasswares with
competitive prices will continue to find increasing accep-
tability in these important established markets. As such
our exporters are at on ease to make concerted efforts to
explore new markets to fetch increasing foreign exchange
earning for the rapid pace of our socio-economic development.
The grcv;th in the export of brasswares during the
last one decade is revealed by the following figures?
40
T/vHLE NO. A
EXPORT (In Or o r e s )
Year % ^^^^^ % ^^f^" % T^^al
wares }-'lated
nlckle
s 1 Iv er
1977-78 84.39 37.10 15.60 6.86 lOO 43.96
1978-79 85.71 51.67 14.28 8.61 lOO 60.28
1979-80 87.65 63.90 12.34 9.00 lOO 72.09
1980-81 88.22 53.22 11.77 7.10 100 60.32
1981-82 81.18 66.38 18.81 15.38 lOO 81.76
.1982-83 77.38 57.91 22.61 16.92 lOO 74.83
1983-84 75*11 55.00 24.88 18.92 lOO 73.22
1984-85 72.03 64.40 27.96 25.00 lOO 89.04
1985-86 [Link] 73.50 28.98 30.00 lOO 103.05
1986-87 68.50 87.00 31.49 40.00 lOO 127.00
77.50 610.08 22.49 177.09 lOO 787.17
source; Data c o l l e c t e d by t h e c o u r t e s y of U.P. State Brassware
Corporation, Moradabad.
The t a b l e under study clearly reveals that upto 1979-80
the export of Moradabad brasswarn EPMS, was increased' year
after year but suddenly decreased in 1980-81. It is the
impact of the communal r i o t s which continued for about four
months, during the peak soason Tc^r t h e industry. liov/ever.
41
the p o s i t i o n v;as expected t o be improved as the l e v e l of
export of brassware could only cross t h e 1979-80 f i g u r e s
but the export of EPNS products increased g r a d u a l l y a f t e r
1980-81.
The fact from t h e point of view of the export market
can be suimriarised as below:
(a) The brass artware i n d u s t r y has earned a niche for
itself in the i n t e r n a t i o n a l market, because of the
e x c e l l e n c e of hand engraving ware.
(b) The hand engraving has been such an a s s e t t h a t i t
has helped the i n d u s t r y in i t s groufth d e s p i t e being
i n c o m p e t i t i v e in terms of p r i c e and q u a l i t y .
(c) The appeal of the hand engraving a r t i s g r a d u a l l y
dwindling and the trend i s now more towards q u a l i t y
of f i n i s h and the e x c e l l e n c e of forms. In t h i s
context i t would not be out of place to sunirarise
the consumer preference under the following c a t e -
gories :
i) Items of purely d e c o r a t i v e and p r e s t i g e v a l u e .
ii) Items with same u t i l i t y value but s u b s t a n t i a l l y
decorative.
iii) Itenis of purely u t i l i t y .
42
In export I t has g o n e r a l l y bor»n observed t h a t items
1 2
in ( i ) p a t e r for hardly 10% of the market while about 85%
of taken care by items in the category ( i i ) and t h e balance
by the category ( i i i ) .
^This trend r e f l e c t s t h a t t h e products f e a t u r e such
as a cornbination of u t i l i t y and beauty i s playing the
daiiinant r o l e in the marketing of the product. This of
course has t o be combined with the p r i c e c o n s i d e r a t i o n .
From the above d i s c u s s i o n following conclusions
emerge i
There a r e two c a t e g o r i e s of workers one/ who a r e o^/n
account c o n t r a c t wage workers and another who hired by owners
of the f i r m s . Usually they pay t o u n s k i l l e d and s k i l l e d
labourers liJ^. 1 5 / - t o 4 0 / - and ll-. 5 0 / - t o 8 0 / - per day r e s p e c -
tively.
Brassware i n d u s t r y provided n e a r l y l . l O lakh employment
where the family workers a r e l e s s in comparison t o hired
workers. As a whole the lacquering process employed l a r g e s t
number of worker r e l a t i v e l y with other p r o c e s s . I t may be
1. Information c o l l e c t e d by the courtesy of Bartan Udhyog
S o c i e t y , Moradabad.
2. Ibid.
43
f e l t tliat children predoi Inate among ttie g u l l l maker though
t h e i r r o l e i s , as a helper only. Average employment per
establishment i s 8 persons of which nearly half constitute
family workers and the r e s t hired l a b o u r .
The items t h a t a r e more popular of the a r t t r a d i t i o n
of Moradabad a r t i s a n s a r e flower v a s e s , b e a u t i f u l t a b l e t a p s ,
t r a y s and candle s t a n d s . Items l i k e a s h t r a y , beermug, pag
t a b l e s , bookend e t c . of c o n s i d e r a b l e v a r i e t y a r e a l s o p r o -
duced by the a r t i s a n s .
Moradabad i s a l s o a c e n t r e of E l e c t r o p l a t e d Nickle
Silver products. The t o t a l productions of the i n d u s t r i e s
estimated of Rs. 2OO c r o r e s out of t h i s 50% i s e x p o r t e d .
Production of brasswares take a t o t a l time of about
6 weeks. In case of the moulded a r t i c l e s , the highest percen-
tage of added value of product i s shared by the processes of
engraving, s c r a p i n g , p a t t e r n making and moulding. Followed
by p o l i s h i n g , lacquering and e l e c t r o p l a t i n g .
No s c i e n t i f i c process i s followed by the i n d u s t r y in
r e s p e c t of the developinent of new p r o d u c t s . The main sources
of inflow of ideas for product development of Moradabad a r e
t h e foreign b u y e r s , design e x p e r t s and l o c a l a r t i s a n s .
Although some modifications i n t r a d i t i o n a l shapes and design
tiave r e c e n t l y been witnessed in the i n d u s t r y .
44
The expcjTt of t h i s i n d u s t r y rnainly del>ends upon the
hand work of the a r t i s a n s who a r e engaged day and night in
manufacturing and introducing new d e s i g n s . The e x p o r t e r s
c o l l e c t the design and send to foreign buyers/ for approval
and acceptance* Industry c o n t r i b u t e s n e a r l y 80% of export
from the country and the t o t a l export from the country i s
about Rs. 100 c r o r e s .
Brasswares of Moradabad are being exported to more
than hundred c o u n t r i e s . They are U.s-A*/ U . s . S . R . / U.K.,
France/ West Germany, Japan, A u s t r a l i a , Canada, Saudi Arabia,
Kuwait, Hong Kong, Taiwan, e t c . In f a c t , India stands in a
p o s i t i o n t o compete with r i v a l c o u n t r i e s as she possess good
resources p o t e n t i a l .
The export of the i n d u s t r y t i l l 1979-80 increased,
but decreased in 1980-81 due t o communal r i o t which continue
for about four months which was t h e peak season for the
industry.
C H A P T E R - TV
"DATA ANALYSIS AND INTERPRETATION"
DATA ANALYSIS AND INTERPRETATION
Type of Business:
The f o l l o w i n g t a b l e shows t h e f c r m s of business
o r g a n i s a t i o n found i n t h e b r a s s w a ; r e i n d u s t r y of Moradabad
TABLE NO. 1
Nuttiber of R e s p o n d e n t s t 50
[Link]. Particulars A c t u a l number of Percentage
Respondents
1. Proprietorship 40 80
2. Partnership 10 20
3. Private company
source : Field Investigation made by the author.
Analysis:
The above montionod t a b l e shows t h a t 00% respondents
r e v e a l e d t h a t they were doing b u s i n e s s in the form of
p a r t n e r s h i p while only 2C% run t h e i r own b u s i n e s s . So i t can
be concluded t h a t majority of businessmen run t h e i r business
in the form of s o l e p r o p r i e t o r s h i p .
46
L o c a t i o n of Plant»
The f o l l o w i n g t a b l e shows t h e l o c a t i o n a l pattern
of t h e b r a s s w a r e industry:
TABLE No.. 2
Nuniber of R e s p o n d e n t s : 50
[Link]. Particulars A c t u a l Number of Percentage
Respondents
1. Congested Market 34 68
2. Near t h e M a r k e t 8 16
3. Near t h e s o u r c e of
personnel 8 16
4. Near t h e s u p p l y of
Raw m a t e r i a l — —
source: Field I n v e s t i g a t i o n made b y t h e author.
Analysis?
The a b o v e t a b l e shows t h a t 68% b u s i n e s s p l a n t s are
located i n c o n g e s t e d m a r k e t , w h i l e 16% n e a r t h e m a r k e t a n d
r e m a i n i n g 16% n e a r t h e s o u r c e of p e r s o n n e l , so i t can be
concluded that t h e m a j o r i t y of b u s i n e s s p l a n t s a r e located
in congested markets.
47
Qualification Possess:
The following table shows the proprietors engaged in
brassware Industry:
TABLE NO. 3
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Graduate 30 60
2. Non-Graduate 4 8
3. Professional
qualification 6 12
4. Technical qualification 10 20
5. Others __
source: Field Investigation made by the author.
Analysis:
The above table shows that 6C% owners of the firms
are graduate while 20% possess technical qualifications/
12% professional qualifications and remaining 8% are
non-graduates.
The classification of data clearly shows that the
educational segment of the society is actively involved in
the business •
48
Bus ines 3 Exper lence '•
The follc3wing table shows the type of business carried
out by brassware industry:
TABLE NO. 4
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Year of experience
in general 4 8
2. Year of experience in
line of business 46 92
3. No experience
Source- Field I n v e s t i g a t i o n irade by the a u t h o r .
Analysis:
The above data shows t t o t 92% respondents possess
experience in the l i n e of business but only 8% have year of
experience in g e n e r a l .
s o , the data i n d i c a t e t h a t the brassware industry-
employs experienced p e r s o n s .
49
ijll-'ilcultloa in G'oH-in<] Kaw MaLct: iain :
The following table shows the degree of difficulty
expressed by respondents in procuring raw materials.
TABLE No. 5
Number of Respondents s 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Yes lO 20
2. No 40 80
s o u r c e : Field I n v e s t i g a t i o n made by the a u t h o r .
Analysis;
The above data clearly reveals that only 20% of the
respondents experience difficulty in procuring raw materials
whereas there la no such difficulty in case of 80% respon-
dents. From the data, it may be concluded that rav; materials
is not a najor problem in brassware industry, so far as its
procurement is concerned.
50
Raw Material Easily Available'
The following table shows the degree of convenience
with which the raw materials is available to the proprietors
TABLE No. 6
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Yes 40 80
2. No 10 20
source: Field Investigation made by the author.
Analysis:
The above table shows that 80;^ respondents has no
problem in getting the raw material while only l^A respon-
dents do not get it easily, so it can be concluded that
the majority of respondents acquire raw uaterials easily.
51
Effect o£ N o n - A v a i l a b i l i t y of Raw K i a t e r i a l
on Prcxjuctlyity;
The f o l l o w i n g t a b l e i s i n d i c a t i v e of t h e e f f e c t of
non-availability of r a w m a t e r l l s on p r o d u c t i v i t y .
TABLE N o . 7
Number of R e s p o n d e n t s : 50
[Link]. P a r t i c u l a r s A c t u a l Number of Percentage
Respondents
1. Yes 50 100
2. No
r -r- - • -* r - . - - , , • i , ,, , . , • • , • — . .. i • m... „ i 11 • i -. T i .n i i • i - • . . . . - . -
sources Field Investigation made by the author.
Analysis i
The above t a b l e shows t h a t a l l the lOO^^ r e s p o n d e n t s
feel that there is effect of n o n - a v a i l a b i l i t y of raw
m a t e r i a l on t h e p r o d u c t i v i t y .
52
Materials Control:
The folloi%rlng t a b l e shows t h e f o r m s of r a w material
control.
TABLE NO. 8
Number of R e s p o n d e n t s s 50
[Link]. P a r t i c u l a r s A c t u a l Number of Percentage
Respondents
1. Through effective
Purchasing 42 84
2. Scientific storing
3. Economic consumption 4 8
4. No 4 8
source J Field Investigation made by the author.
Analysis :
The above table shows that 84% owners of the business
control their material through effective purchasing while
8% control through econanlc consumption but 8% owners have
Performed no such type of activity to control the material.
so, it can be concluded that majority of the respondents
control the materials through effective purchasing.
53
Labour Problem;
The following table provides informations relating to
labour problem in brassware induetry.
TABLE NO. 9
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Yes 10 20
2. No , 4 0 80
source• Field Investigation made by the author.
Analysis i
The above data shows t h a t only 20% respondents has the
labour problem and the 80/, respondents has no such type of
problem, s o , the rrajority of respondents has no labour
problem, which supports the idea that the handicrafts and
small s c a l e i n d u s t r y enjoy c o r d i a l labour management
relation.
54
Operational Problem;
The following table shows the intensity of factors
which cause operational problem in the brassware industry.
TABLE No. 10
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Break down
electricity 40 80
2. Lack of technical
skill
3. Both 10 20
source '• Field Investigation made by the author.
Analysis '•
The above table shows that 80% respondents face the
problem due to break down of electricity while 20% face both
the break down of electricity as well as lack of technical
skill. It is clear that majority of respondents face the
problem of break down of electricity in their undertaking.
55
The Production of such Type of Goods which
Requires High Trained & Qualified Persons:
The following table shoivs the proportion of highly-
trained and qualified personnel.
TABLE NO. 11
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Highly Trained
Persons 40 80
2. Highly Qualified
Persons lO 20
Source! Field I n v e s t i g a t i o n s nade by the a u t h o r .
Analys i s :
The above table shows that 80;^ owners feel the require-
ments of highly trained persons while only 20% require highly
qualified persons.
The above classifications show that the majority of
the respondents required highly trained persons.
56
Wage R a t e S y s t e m ;
The € o l l o w i n g t a b l e shows t h e method of wage payment
in brassware industry.
TABLE NO. 12
Number of R e s p o n d e n t s : 50
[Link]. P a r t i c u l a r s A c t u a l Nuiriber of Percentage
Respondents
1« Piece r a t e system 2.8 56
2. M o n t h l y w a g e s systoiii — —
3. Weekly w a g e s s y s t e m ' 22 44
source' Field I n v e s t i g a t i o n made b y t h e a u t h o r .
A n a l y s i s ••
The above table shows t^at 56% businessmen adopt the
piece rate system while 44% businemen pay the wages to their
workers on weekly basis. So, the majority of businessmen
adopt the pice rate system of wage payment in their firms.
57
Bonus and other incentives to the workers i
The following table indicates the incentive plans
being £ollowec3 in brassware industry.
TABLE NO. 13
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Yes 38 76
2. NO 12 24
source? Field Investigation iiade by the author.
Analysis i
The above table shcr.-js that 16% of respondents gives
the bonus and other incentives to the workers while 24%
do not pay the bonus and other incentives to their workers
58
Rate of Over Time to the Workers '-
The following tables shows the rate of over time
payments for workers in brassware industry.
TABLE No. 14
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Below the daily wages 2 4
2. Equal to daily wages 2 4
3. More than daily wages 38 76
4. No 8 19
sourcei Field Investigations made by the author.
Analysis i
The above d a t a uhows t h a t 76?^ owners of t h e firms
pay t h e o v e r t i m e e q u a l t o more t h a n d a i l y w a g e s . l 9 ^ pay
no o v e r t i m e and 4% e a c h pay e q u a l t o and below t h e d a i l y
wages t o t h e w o r k e r s , s o , i t i c obvious t h a t m a j o r i t y of
owners Pay more t h a n d a i l y wages t o t h e i r w o r k e r s .
59
Technique of Management '•
The follcjwing table shows the technique of management
by proprietors of brassware Industry.
TABLE NO. 15
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
Traditional way 42 84
Follow the b a s i c
p r i n c i p l e s of
management 8 16
sourcei Field Investigation made by the author.
Analysis:
The above d a t a shov; t h a t 84% respondents manage t h e i r
firms in t r a d i t i o n a l way while the 16% follov;s the b a s i c
p r i n c i p l e s of rmnagement. So, the c l a s s i f i c a t i o n revealed
t h a t the majority of respondents manage the firms in a t r a d i -
t i o n a l way.
60
Institutional Finance?
The following table shows the sources of finances
available to Brassware industry of Moradabad.
TADLE NO. 16
Number of R e s p o n d e n t s : 50
[Link]. Particulars A c t u a l Number of Percentage
Respondents
1. c o m m e r c i a l Bank 40 80
2. IDBI
3. ECGC
4. EXIM BANK
5. Private sources 10 20
source'• Field Investigation made by the author.
Analysis:
The above data r e v e a l t t a t the commercial bank provide
the finance to 80% owners of the firms while only 20% owners
a c q u i r e the finance through p r i v a t e source* s o , i t can be
concluded t h a t the commercial banki. provide the finance in
the majority form.
61
Period of Credit;
The following table indicates the feelings of borrowing
requirements enqaqod in brassware industry.
TABLE No. 17
Number of Respondents - 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Yes 38 76
2. No 12 24
source'' Field Investigation made by the author*
Analysis t
The above table shows that 76% proprietors feel that
the Period of credit is satisfactory. But 24% think that
the Period of credit is not satisfactory, so, the majority
of proprietors satisfied with the Period of credit.
62
Types of Security:
The following table shows the type of security needed
for borrowing in brassware industry.
TABLE No. 18
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Hypothecation
2. Bank Guarantee 50 100
3. Pledge
4. Any other
source? Field Investigations made by the author.
Analysis:
The above table reveals that all the 100% of the
respondents get finance against bank guaranteed.
63
Problems In Bank Credit:
The following table highlights the nature of problems
in Bank finances by brassware industry.
TABLE No» 19
Number of Respondents '• 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. High interest 32 64
2. Too many formalities 12 24
3. Delay in sanctioning
credit 6 12
4. Any other — ——
sourcet Field Investigations made by the author.
Analysis ;
The above mentioned data shows that 64% respondents
face the problem of high interest in bank credit and 24% face
the problem of too many formalities and only 12% such respon-
dents face the problem of delay in sanctioning the credit. So,
majority of respondents face the problem of high interest in
bank credit.
64
Type of Brass Goods Produced:
The following table shows that the type of products
turned out by branswaro Induntry.
TABLE No« 20
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Decorative 20 40
2. House hold purposes 10 20
3. Miscellaneous 20 40
Source'' Field Investigations made by the author.
Analysis ;
The above t a b l e shows t h a t the 40^^ owners procluced the
d e c o r a t i v e items and another 40^^ produced miscellaneous items
while 20% turned out household i t e m s .
SO/ the c l a s s i f i c a t i o n shows t h a t the n a j o r i t y of the
respondents produce d e c o r a t i v e and miscellaneous items in
their firms.
65
Basis of Product Designing;
The following table shows the basis for designing the
brassware products of Moradabad.
TABLE NO, 21
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Indegeneous design 8 16
2. Imported design 6 12
3. As Per the instructions
of the buyer 36 72
4. Any other
source •• Field I n v e s t i g a t i o n s made by the a u t h o r .
Analysis:
The above table shows that 72% respondents design the
products as Per the instructions of the buyer and 16% use
indegeneous designs/ while 12% follow imported designs. So,
it can be concluded that the majority of respondents design
their products as per the instructions of the buyers.
66
Nature of Foreign Buyers :
The following table shows type of foreign buyers for
brassware products.
TABLE No. 22
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Private 10 20
2. Government
3. Departmental store 40 80
4. Defence Department
sources Field Investigations made by the author
Analysis ;
The above d a t a shows t h a t 80% owners of the firms sell
t h e i r products t o the dopnrtmental s t o r e s abroad while 20%
sale to private buyers. So, t h e majority of t h e respondents
sold the products t o the Departmental S t o r e s .
67
Type of Competition:
The following table shows the type of competition being
faced by brassware industry of Moradabad.
TABLE No. 23
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Price competition 34 68
2. Quality Competition 16 32
3. Packing Competition
4. Any other
Source' Field Investigations made by the author.
Analysis:
The above data reveals that 68?^ respondents face the
price competition while 32% respondents face quality compe-
tition. Thus/ the majority of respondents face the problem
of price competition.
68
Product competitive in the world Market:
The following table shows the business carried out by
brassware Industry of Moradabad.
TABLE No. 24
Number of Respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1. Yes 50 100
No
sourcet Field Investigations made by the author.
Analysis*
The above mentioned d a t a shows t h a t a l l t h e r e s p o n d e n t ' s
q u a l i t y of proiKicts competitive in the World market.
69
Facilltieg Provided by the Governrnent:
The following table shows the extent of facilities
being provided by the Government for brassware industry of
Horadabad.
TABLE No. 25
Number of respondents : 50
[Link]. Particulars Actual Number of Percentage
Respondents
1• Yes 42 84
2. No 8 16
source '• Field Investigations made by the author.
Analysis :
The above table shows that 84% respondents revealed
that the Government provided the facilities like subsidies,
duty drawback/ etc. to them to run their business while only
16% has no such type of facilities. So, it can be clear that
the majority of respondents get the facilities provided by
the Government, to run their business.
70
GovernnriGnt P o l i c i e s a r e Favourable?
The f o l l o w i n g t a b l e shows i m p a c t of Government policies
on t h e b r a s s w a r e r t a n u f a c t u r e r s •
TABLE NO. 26
Number of R e s p o n d e n t s : 50
[Link]. Particulars A c t u a l Number of Percentage
Respondents
Yes 50 100
2. No
source i Field Investigations made by the author.
Analysis:
The above t a b l e revealed t h a t the Persons engaged in
brassware t r a d e / find t h e Government p o l i c i e s favourable for
t h e development of the t r a d e *
No doubt t h i s i n d u s t r y play s i g n i f i c a n t r o l e in the
economic development of Moradabad. Yet i t suffer from a
number of problems wlilch have hindered in attainment of r e a l
goal. In t h i s connection the next chapter i s devoted with
the problems of Brassware I n d u s t r y .
C H A P T E R - V
PROBLEMS OF BRASSWARE INDUSTRY
PROBLEMS OF BRASSWARE INDUSTRY
In spite of the vital role which the brassware
industry plays in the national economy, this industry
faces a variety of problems. Most of the problems of
the Brassware Industry of Moradabad arise from its being
small in size. The industry seems to be caught in a vici-
ous circle. Small size of establishments prevents them
from taking advantages which accrue only to large units,
lack of these advantages prevent them from moving up the
ladder. With this prefactory note, we discuss in the
following pages the various problems being faced by the
Brassware Industry of Moradabad.
(a ) Financial Problems;
The availability of adequate finance in time is
essential for the smooth functioning of an industry. Brass-
ware Industry at Moradabad requires large amount of working
capital because raw material alone constitute about 60% of
1
the total cost of productions. The Small K^rkhanedars and
artisans face this problem due to indifferent bank practice
which demand security for loan whereas they do not own such
security.' consequently, the Small Scale entrepreneurs fail
1. Information collected by the courtesy of Vorba Manufac-
turers /Expor ters , Mora(3abad .
71
72
to get the bank finance for working capital. Banks are
required to finance loan upto 50^000/- on easy terms and
concessional rate of interest. The small entrepreneurs
at Moradabad continue to face this problem even now as
they did earlier. Keeping in view the significance of
this export oriented as well as labour intensive industry,
it is necessary on the part of the Government to extend
financial assistance for this industry at liberal terms
and conditions without emphasising on security for loan.
(b) Raw Material Problem;
Brassware Industry face another major problem of
non-avallability of quality raw materials at reasonable
rates. In the existing set up, availability of quality
raw material at reasonable rates continue to be a problem
for small manufacturers. Small Kharkhanedar with limited
financial resources have to resort to open rrarket purchase
at very high prices. The wealthy traders, who invest their
funds in purchasing and storing the raw naterial for retail
selling, afterwards try to exploit the small Kharkhanedar
by charging exorbitant prices of riaterials against the
credit sale. If these small entrepreneurs try to import
raw material, they fail to do so because their orders for
small quantities are not accepted by exporters.
73
copper and zinc are the nHin items of raw rraterials
which are imported. The price of these raw materials have
considerably gone up in the international market. -In order
to enable the small scale producers to procure the raw mate-
rials at reasonable rates it is desirable that the State
Government should intport it in bulk and made it available
to the small units at fair rates.
(c) Traditional Production Methods:
The small scale producers still use the traditional
methods of production which have failed to improve the qua-
lity of production and raise labour productivity. There
are only a few units which have installed machines for
scraping and polishing work. The processes of casting/
soldering, scraping, polishing, electroplating and lacque-
ring can further be modernised to improve upon the effi-
ciency and output of workers. But due to lack of finance
they are not in a position to invest their own capital,
considering the growing market and to meet the need of
foreign buyers, there is pressing need to further mecha-
nise and introduce improved technology in process of moul-
ding and casting, soldering and scraping, polishing, electro-
plating and lacquering to increase output and for better
finish.
74
It is also essential to provide an opportunity to
the artisans to learn the process of work not yet known
to them.
(d) Shortage of Power;
Shortage and interrupted power supply is another
problem which adversely affects the production. The pro-
ducers find it very difficult to adhere to production
schedules to execute the foreign orders on tin\e. The State
Government should allot more pa.^rer supply to the district
Moradabad in view of its industrial character which consists
mostly handicrafts and small scale units.
so, the uninterruped supply of power is very much
essential for the smooth functioning of the industry to
fulfil the requirements of the customers.
(e) Marketing Problems'
In the international market, exports in brassware
have been meeting tough competition from countries like
Taiwan, Korea and even Pakistan. Incidentally, the compe-
tition is not in respect of the handicrafts rranufactured
in India but in respect of such items v/hich can be manu-
factured mechanically. Most of the planters and functional
75
items are produced cheaper and at a greater sPeed by
mechanical means in Taiwan and Korea and some other coun-
tries who have flooded the international rtarket with their
products. There has been a tendency to concentrate on the
manufacture and export of such items that are typically
the products of Individual artistic traditions.
While India is supplying the articles 86 countries,
the largest share being that of Saudi Arabia, U.S.A./ U.K.,
U.S.S.R./ Fiji, Canada, Israel and Nitherland, followed by
Behrain, Brazil, Egypt, Kuwait, Norway, Poland, Sweden,
Yemen Arab Republic - our competitions are with markets
of Japan, south Korea, Hong Kong, Taiwan, Italy and Pakis-
tan. Though each of these countries have its own clientele
because of different characteristics of their products; Yet
the competition is there duo to problem of close substitutes
The worst part is that even amongst Indian exporters there
is an intense competition. In order to maintain prices,
the quality standards are lowered- The nature and extent
of competitions offered by Taiwan, Pakistan and Korea are
explained below:
TAIWAN;
Taiwan offers competition to India especially in
respect of plain and heavy items. The extent of advantages
76
in respect of their items are:
a) Qaulity of brass - such as the metal used by
Taiwan is considered to be better.
b) Taiwan enjoys distinct price advantage in plain
and heavy items -
c) The country is able to respond well to change
required in shapes and forms.
KOREA t
competition pattern of Korea is similar to that of
Taiwan.
PAKISTAN;
a) Pakistan enjoys a price advantage of 10% to 20%
in respect of sheet items, plain brass items and
a few cast item. The difference in engraving is
of the order or l9:20 compared to India.
b) Its quality is considered better in respect of
durability.
The handicraft items can be divided into three cate-
tories based on their use :
l) Items which are considered purely decorative
having prestige value.
1. Data collected by the courtesy of Manufacturers/
Exporters Association/ Moradabad.
77
2) Items which have some utility value with substan-
tial decorative features.
3) Items which are pririarily utilitarian.
While the product features play an important role/
the over riding marketing consideration seems to be the
retail price range of the items/ influencing the buying
decision of the consumers.
As Per the report of Indian Institute of foreign trade
market share by price range is indicated below :~
1) If the retail value of an item is less than
2.50 $ it is considered an expensive-
2) If the retail price is 2.50 $ to 7.50 $ or even
upto lO $ it is considered acceptable.
3) If the retail price is beyond lO $ buying
considerations are more exacting.
A. CHANNEL OF DISTRIBUTION:
a) Established Importers
b) Whole-salers
c) Departmental Stores
d) Other retail outlets.
78
Established importer/ who comprise a few t h e Indian
and P a k i s t a n i s e l l e r s account for about 85% of the imports.
Some lTnporterf3/wholp»3alers have t h e i r own r e t a i l o u t l e t s in
prominent business c e n t r e s * Whole-salers a c t as l i n k b e t -
ween the importers and r e t a i l o u t l e t s .
B. LACK OF ADVERTISING;
Lack of a d v e r t i s i n g a t n a t i o n a l and i n t e r n a t i o n a l
l e v e l i s an important problem being faced by the manufacturers
and s e l l e r s of the handicrafts p r o d u c t s . The r o l e of Govern-
ment in t h i s connection has been insignificant.
C SALES TAX:
The artisans - manufactures find the present sales
tax and its registration troublesome. The registration
system had undergone a change since 1952 and the present
tax rates are as follows :-
a) Those having one Bhatti Rs. lOO/- per year
b) Those having tv/o Bhatties Rs. 300/- per year
c) Those having three Bhatties 1^. 500/- per year
d) Those having four Bhatties Rs. 800/- per year
e) Gulli and para Bhatties Rs. 2 5/- per year.
1. InforfTBtion collected by the courtesy of u.P. State
Brassware Corporation Ltd., Moradabad.
79
The making or dismantling of Bhatti takes very little
time and money and therefore/ assessment on their basis does
not appear to be justified. Either a flant rate of tax
should be charged from all artisans - iianufacturers or this
tax should be totally done away with.
The sales tax on basic raw material and brass and
nickle sheets is 4% whereas it is only 1% is adjoining area
such as Delhi.
°* CUSTOM AND EXCISE DUTY:
The most important point that has been a thorn to the
importers of basic raw material is the custom and excise
duty. Since 1.4.l98l^ the custom and excise tariff has been
revised and new duty is being levied in cash at fixed rates
2
i.e. for copper alloys Rs. 3/300/- per Metric tone/ Zinc
3
Rs. 4/662/- per Metric tone, obviously, the charging of
this duty on scrape has increased the price of Brass silli
and this is adversely affecting the export trade. It is
felt that exporters should be charged duty at lower rates
on scraps so that they are encouraged to produce more and
compete successfully in brass art-wares.
1. Information collected by the courtesy of U.P. State
Brassware Corporation Ltd., Moradabad.
2. Ibid.
3. Ibid.
80
(f) Managerial Problem:
Brassware I n d u s t r y a l s o faces the problem of manage-
ment. This i n d u s t r y i s mostly tmnaged by owner-iranagers
who do not possess any formal t r a i n i n g . I t i s observed
t h a t the owner-nnnagers are fine craftsmen but they lack
e f f i c i e n c y in the management of business a f f a i r s of t h e i r
undertaking. i t i s u n f o r t u n a t e that governmont s t r e s s e s
the need of t r a i n e d a r t i s a n s for i n c r e a s i n g productions
but i t does not r e a l i s e s the n e c e s s i t y of t r a i n e d rianage-
r i a l s k i l l i s developed in Moradabad. The Small I n d u s t r i e s ,
Service I n s t i t u t e should organise nanagerrient courses for
owner-managers of these i n d u s t r i e s / who a l r e a d y possess
p r a c t i c a l knowledge and experience of running the i n d u s t r y .
Therefore/ the t r a i n i n g course should be for s h o r t d u r a t i o n
because the owner-managers of those firms a r e not in a
p o s i t i o n to leave t h e i r firms for long.
(g ) Some ptj.\pr. i^ri^l^Jril!?. *
i) Te le -commun i ca t i on :
There is great handicap on account of communication
service between the exporters and foreign buyers. The lack
of efficiency of the tele-communications has been causing a
81
serious loss to our export trades at Moradabad. Unfortu-
nately/ the tele-communication service available at
Moradabad is lacking to render efficient service for dissi-
rninating the inforrtations wliich are required by the foreign
buyers on regular basis.
The existing telephone exchange at Moradabad is out-
dated and obsolete to render even and efficient service
within the country itself. The STD service allowed at
Moradabad is linked via Dareilly exchange where only 30
circuits are available out of which 5C% remain out of order
with the result that the STD calls often do not materialise.
It would not be out of place to mention that even the
Telex Service too is short of the expectations of the export
trade. Generally, the Telex Instruments remain out of order
for long period and that the machine go out of order very
frequently.
The problem at Moradabad can be overcome with improved
tele-communication and telex communications because our
exports are being challenged by other competitive countries
in the international rmrket. On order to promote export
from Moradabad it is advisable that the communications
facilities may be improved as early as possible*
82
11) Fluctuation In Price Index J
The foreign purchase orders are negotiated betv/een
the Indian exporters and the foreign buyers 3 to 4 months in
advance from the date of shlpnent of the merchandise. It
implies that the exporters/ while negotiating the deal deter-
mine the selling price taking into account the price Index of
the Minerals and Metils Trading corporation of India Limited
(M.M.T.C.) prevailing at that time.
It is observed that the M.M.T.C. announces price hike
abruptly and suddenly owing to which the exporters find
themselves in a tight corner for honouring the purchase orders
already negotiated.
To overcome this difficulty it is necessary that the
M.M.T.C. should be instructed to announce the revision of the
price Index each after 4-irionths period Instead of revised the
same every month.
ill) visa;
It has been observed for the last few years that
great difficulties are faced by the exporters in obtaining
visa from the countries of Europe like Italy/ France/ West
Germany and also from the Gulf countries. Their conservative
83
a t t i t u d e tcfwards the exporters Is soiiiething a g a i n s t the
i n t e r e s t of t h e export promotion.
In case of donylncj tlif> viaa to tho oxi'ortora, i t ia
impossible to promote the exPort without contacting the
foreign buyer because tl^at the i n t e r n a t i o n a l market be
t o t a l l y captured by the other Asian c o u n t r i e s such as Taiwan,
Korea/ Hong Kong e t c Thus/ i t i s e s s e n t i a l t h a t v i s a should
be granted t o t h e exporterc t o promote t h e i r e x p o r t .
•^^ ^ Change in Weekly Hest :
At present the weekly r e s t t o labour and s t a f f
employed in i n d u s t r i a l u n i t s a t Moradabad i s allowed on
Thursday or in some cases on F r i d a y , whereas t h e Government
o f f i c e s , banks and t r e a s u r y remains closed on Sunday. In
a d d i t i o n general market under Shop Act remains closed on
Tuesday.
As a r e s u l t of the above the production as well as
commercial a c t i v i t i e s of export oriented b r a s s handicrafts
i n d u s t r y a t Moradabad a r e d i s t u r b e d on s e v e r a l days in a
week.
B a s i c a l l y , t h i s s i t u a t i o n a r i s e s because of t h e power
cut imposed on Moradabad r^rasware Industry on Thursday and
84
in some cases on Friday. In case the U.P. Government
observes uniform policy of imposing power cut applicable
to industrial units on Sunday the above situations may be
got rid of.
V) Vayudoot Service'
The lack of the travel facilities create the
problem for foreign buyers/ who come to Moradabad to buy
merchandise. Railway do not provide any air conditioned
service between Delhi and Moradabad for the journey by
foreigners at convenient timing nor the road tracks between
Delhi and Moradabad is good enough/ for playing delux
coaches, AS a result of this the exporters from Moradabad
have to "go to New Delhi by road with a small lot of samples
for negotiating the deal with foreign buyers who stay in
city where there are 5 star hotels.
The introduction of Vayudoot service at Moradabad is
essential for foreign buyers. As a matter of fact, it is
the demand of the foreign buyers to make them available
air journey to and from Moradabad.
vi) High Freight Charges :
The export of handicrafts produced by Moradabad
Brass Industry has been suffering from the set back caused
85
by the competition from other Asian countries. Which have
been able to sell their merchandise in the international
market on cheaper rate by allov/ance of availing subsidy on
freight from their Government- The foreign buyers continue
to complain about the higher rate of freight both by sea
and air in respect of import made by them from India. The
shipping lines as well as air lines do charges higher freight
rate from Indian ports owing to some of their specific prob-
lems like detention of vessels at Indian ports.
The shipping lines are actively considering further
1
rise in shipping rates at Indian ports by 10%. it is the
miserable position for the Indian export trade. The foreign
buyers n\ay not accept to pay higher freight rates on Indian
goods when they are in a position to buy similar goods from
other countries at cost of lesser of freight payment.
so, it would reasonable that in order to boost up
export the difference in freight structure should be sub-
sidised by the Government either by direct refund to the
exporter or in any other way which may be found feasible.
vii) Change in International priced
Moradabad Brassware Industry produces artistic,
decorative/ gift articles inclusive of tablewares etc. for
1. Information collected by the courtesy of C L . Gupta & Sons,
Moradabad.
86
Performance of af3ded value exports. Since India is not self
sufficient in respect of the reauirement of non-ferrous
metals/ the import of the same is permitted under open general
licence (O.G.L.).
However, the import duty is charged on the basis
leading to serious problems for export trade, such as the
abrupt changes in international price and sudden and frequent
hike in rate of import duty upsets the planning in supplying
merchandise to foreign buyer because the rate of the duty
draw back is not compensated correspondingly.
In view of the above, it would be rational to change
the pattern of imposing import duty. The import duty should
be levied on weight basis and not on value basis. It would
solve the imbalance affecting marketing.
The U.P. state Brassware corporation Limited/ iray be
authorised to make import of brass sheets/copper sheets of
higher quality from foreign in bulk to sell the same in
piece meal to manufacturers/exporters at Moradabad to cover
their net demand.
Having examined in the foregoing pages, the various
problems faced by the industry. The following conclusion
nay be drawn from the above discussion :
87
The stnall manufacturers and artisans face the problem
of finance very much. When they approach to back or financial
institution for assistance they are asked to give property
guarantee. Such units usually have no property of their own
so they fail to avail of the financial assistance* It is
necessary on the part of the Government to extend financial
assistance to this industry for the groivth and production.
Availability of quality raw material at reasonable
rates continue to be being problem for small manufacturers.
The healthy traders exploit snail Kharkhanedar by charging
much price of raw material. There is urgent need to esta-
blish a recognised channel for regular supply of raw material
to small manufacturers at the reasonable price.
The production processes and techniques adopted by
the industry at Moradabad are very old, laboured and time
consuming there is pressing need to further mechanise and
introduce improved technology is processes to increase out-
put and for better finish.
Shortage of power is also an important problem which
creates the hurdle in the way of production which adversely
effect the export. The interrupted supply of power is
essential for smooth functioning of the industry.
88
In the International market export in brassware has
been meeting tough competition from countries like Taiwan,
Korea and Pakistan. Most of the planters and functional
items are produced cheaper and fast mechnical means in
other countries. The worst part is that even amongst Indian
exporters there is interse competition. The nature and
extent of competitions offered by Taiwan and Korea and to
India specially in respect of plain and heavy items, and
Pakistan enjoys a price benefit of lO% to 2C% in respect of
sheet items* plain brass items and a few cast items.
The channel of distribution is - established importers/
whole-salers/ DeEartmontal stores and other retail outlets.
Lack of advertising is also an important problem which
the industry faced at the national and international level.
The role of Government is insufficient in this connection.
The artisans manufacturers face the sale tax problem
also. The making or dismantling of Bhatti takes very little
time and money and therefore* assessment on their basis does
not appear to be justified. The sale tax on raw material is
4% while it is merely 1% in adjoining areas. There is also
the problem of custom and excise duty. It is felt that
exporters are exempted from payment of so much duty to com-
pete the international market.
89
Brassware Industry a t Moradabad a l s o face t h e mangerial
problem. I t i s observed t h a t the owner# managers a r e f i n e
craftsmen but they lack e f f i c i e n c y in t h e rmnagement of
business a f f a i r s , s o , i t i s necessary t h a t managerial s k i l l ,
i s developed in Moradabad. The Small I n d u s t r i e s Service
I n s t i t u t e should organise management course for owner mana-
gers of these i n d u s t r i e s / who a l r e a d y possess p r a c t i c a l
knowledge and experience of running the i n d u s t r y .
There a r e some other important problems which c r e a t e
the hurdle i n the v;ay of smooth functioning such a s / t e l e -
communication which i s old and o b s o l e t e t o render even an
e f f i c i e n t s e r v i c e within the country i t s e l f . I t would not
be out of place t o mention t h a t when t h e Telex s e r v i c e too
i s s h o r t of the e x p e c t a t i o n s of the export t r a d e . It is
necessary to improve tele-communication and telex-communi-
c a t i o n s t o promote the export from Moradatod.
I t i s observed t h a t Minerals and Metals Trading
corporation announces p r i c e hike a b r u p t l y and suddenly owing
to which tliG e x p o r t e r s find themselves in a t i g h t cornor. I t
i s necessary t h a t M.M.T.C should be i n s t r u c t e d t o announce
the r e v i s i o n of the p r i c e Index a f t e r 4 months period i n s t e a d
of every month.
90
There is also a problem before the exporters in
obtaining the visa, xvith this problem it shall not be possi-
^ble to promote to export without contacting the foreign
buyers and the international market be totally captured by
the other Asian countries such as Taiwan, Korea, Hong Kong
etc* So, it is essential to granting the visa.
There is a problem of weekly rest which is allowed on
Thursday and in some case on Friday while the Government
offices remain closed on Sunday as a result of it, the
commercial activitties disturbed on several days in a week.
This situations arise because of power cut imposed on
Moradabad Industry on Thursday and Friday. To rid of this
situation it is felt that uniform policy of imposing power
cut should be applicable to these industrial units on Sunday
Per week.
With the lack of travle facilities, there is the
problem to foreign customers to come Moradabad, so it is
essential to introduce Vayudoot service at Moradabad to
foreign buyers. Actually, it is the demand of foreign buyers
to make them available air journey to and from Moradabad.
There is the problem of higher rate of freight charges
both by sea and air to the foreign buyers who import the
91
goods from Inrlia. They may not accept to pay hiqher freight
because they are in a position to buy similar goods from
other countries at cost of lesser freight payment, so, it
v/ould be reasonable that the difference in freight .structure
should be subsidised by the Government.
The abrupt charges in international price and sudden
hike in rates of import duty upsets the planning in supplying
merchandise to foreign buyers because the duty is not coriipen-
sated correspondingly, so, it would be rational to charge
the pattern of imposing import duty.
£ ]1 il F- 1 3. Bi ~ Y I
"CONCLUSIONS AND SUGGESTIONS OF THE STUDY"
CONCLUSIONS AND SUGGESTIONS 01=' THE STUDY
Conclusions :
This concluding chapter has been devoted to draw the
rrain conclusions of the study on the development of brass-
ware industry of Moradabad and to suggestions with reference
to specific problems being faced by the industry.
The basic finding of the study is that being labour
intensive in nature/ this industry at Moradabad not only
absorbs thousands of unemployed Persons but has also enormous
potentialities for fetching the much needed foreign exchange
earning for the accelerated economic developnent of the
country.
The brassware industry at Moradabad/ being labour
intensive and export oriented is an old traditional cottage
industry of U.P. famous all over the v;orld for the beauty of
its decorative as well as utility items. The brassware
industry provides vast employment. This industry has recor-
ded a phenomenal growth during the last few decades.
The production processes are usually carried out in
the residential premises. The entreprises engage in the
manufacture of brassware throughout the year except the
93
r a i n y season. Tho labour forco comprises family workers
and hired workers vrho a r c paid wages.
A wide range of brassv/aro items a r e being produced a t
Moradabad in various shapes and d e s i g n s . A number of p r o -
cesses involved in the manufacturing brassware are undertaken
by i n d i v i d u a l establishments s p e c i a l i s i n g in each of them. No
s c i e n t i f i c process i s adopted by the i n d u s t r y i n r e s p e c t of
the development of new p r o d u c t . The main source of product
development appears t o be the foreign buyers and l o c a l a r t i -
sans. Moreover, the production techniques adopted by the
i n d u s t r y a r e very old and time consuming. Very few e f f o r t s
have been made in t h i s d i r e c t i o n by the governmental agencies
manufacturers and e x p o r t e r s .
Regular and adequate supplies of raw r r a t e r i a l continue
t o be an important problem for the i n d u s t r y d e s p i t e c e r t a i n
e f f o r t s which have been made by the government t o m i t i g a t e
I
t h i s problem. Given the c r e d i t ! f a c i l i t i e s / a l a r g e portion
of SITBII Karkhanedars and a r t i s a n s continue to purchase raw
m a t e r i a l from l o c a l d e a l e r s a t e x o r b i t a n t p r i c e s . While
the merchant-exporters u s u a l l y do not face any problem in
procuring finance from the banks and other f i n a n c i a l insti-
t u t i o n s in time of need.
94
The socio-economic conditions of the worlcers are
unsatisfactory. Most of the artisans family members are
illiterate. The institution of child labour inflicting
illiteracy upon the children as also their exploitation by
Karkhanedars need immediate attention of the authorities
to introduce child welfare schemes at Moradabad.
Health and medical facilities available to the artisans
at Moradabad also appear to be utterly inadequate. The inci-
dents of T-B./ asthana, malaria are to be high among the
brassware workers.
As a measure of export promotion, the government of
India is currently providing 1<>^ financial assistance to
the exporters following by custom duty drawback.
The main competitors in the field of export trade of
brassware are South Korea, Hong Kong, Taiwan and Pakistan.
The articles made by them are produced in mass of modern
machines. Raw n-aterial at those countries are made avail-
able at international pricos, v;hich reduce their cost of
production. The quality of products offered by these
countries is also superior to Indian brasswares.
The industry follows the usual channels of whole salers
and retailers for marketing the brassware in different parts
9q
of the country and the v/orld. Among the whole salers,
individual export houses, manufacturer exporters, U.P.
State Brassware Corporation are prominent while comiriission
agents, local dealders comprise retailers.
Considering the vast export potentialities of brass-
ware industry at Moradabad, the Government of India has
developed a fairly strong institutional structure for the
export promotion in the country. ' A series of service
organisations like Indian Institute of Foreign Trade, Trade
Fair Authority of India, Export Directorate of Development,
Director of Drawback and a number of chambers of commerce
and industry have been quite instrumental in boosting the
export of brassware. Likewise, rmny export marketing orga-
nisations such as Minerals and Metals Trading Corporation,
State Export Corporation have also contributed a lot in
stepping up the exports of brasnware in the international
[nar ket.
Suggestions i
The follov/ing s u g g e s t i o n s a r e put forth:-
l) I t a p p e a r s from t h e s t u d y t h a t t h e n r a j o r i t y of indus-
t r i a l community a t Moradabad s u f f e r s from t h e l a c k of finance•
so, the credit f a c i l i t i e s on e a s y i n s t a l m e n t should be
96
extended to the artisann to facilitate buyinq of: raw material
and marketing of finished goods on his ov/n. This would go a
long way in eliminating the dealer,financer and middlemen
who dominate the industry. The State Government as well as
the local banking institutions should relax conditions of
issue of credit to the artisans. The lead bank of the dis-
trict should be entrusted v:ith the responsibility to survey
industry and the artisans engaged there in with a view to
assist their entrepreneunial attitude. Those willing to
setup their independent enterprises should be provided with
adequate loans at easy and cheap terms.
2) The dealers and exporters should be encoioragod to set
up some big units covering the brassware rmnufacturing as a
whole. For this purpose the State Finance Corporation or a
similar agency should provide adequate finance facilities.
3) Inadeqaute supply of raw material need to be organised
so as to ensure adequate and timely availability at reason-
able prices. In order to overcome the problem of raw mate-
rial supply to small Karkhanedar and artisans the State
Government should either set up a separate organisation
exclusively responsible for procurement and regular supply
of raw material to the small Karkhanedars.
97
4) With a view to increaso the production i t i s d e s i r a b l e
to upgrade the t r a d i t i o n a l production tecliniqeus and process
v/hich would not only Gtronqthon the competitive p o s i t i o n of
the i n d u s t r y abroad but would a l s o help in improving the
e x i s t i n g l i v i n g c o n d i t i o n s of: the a r t i s a n s a t Mora da bad .The
S t a t e Government should s e t up a process development and
t r a i n i n g c e n t r e a t Moradabad, v;hich would experiment and
develop the new production techniques and process and t r a i n
the a r t i s a n s in the new process and techniques so developed.
5) For the s i z e a b l e export of brassv;ares and the a b i l i t y
of i n d u s t r y t o v;ithstand competition in foreign markets, i t
i s highly d e s i r a b l e t o a c c e l e r a t e the design dcvclopnient
a c t i v i t i e s by e s t a b l i s h i n g a well equipped design extension
c e n t r e a t Moradabad.
6) The s i g n i f i c a n c e of q u a l i t y c o n t r o l of maintaining the
e x i s t i n g foreign markets as well as for capturing the new
ones, i t i s imperative on the p a r t of the S t a t e t o cover the
i n d u s t r y under the q u a l i t y iruking scherte. Tlie q u a l i t y nuking
c e n t r e of the U.P. Government should be upgraded with a d d i t i o -
n a l s t a f f and t e s t i n g f a c i l i t i e s for c o n t r o l l i n g the q u a l i t y
of brasswares manufactured for e x p o r t s .
98
7) I t i s obsf^rved t h a t the unhealthy and unsound c o n d i -
t i o n s in which the v;orkers l i v e mostly the a r t i s a n s a t
Moradabad, alrfoct t h e i r v/orkinq and expose thoin to many
t e n s i o n s including hazard to h e a l t h / absence of s o c i a l
security. I t i s suggested tlvit the S t a t e Governtnont should
adopt s u i t a b l e s o c i a l s e c u r i t y and healthy measures in work
houses which d o n ' t come un(3er the purview of f a c t o r i e s Act.
The new labour welfare c e n t r e s should be located a t a place
where the a r t i s a n s a r e c e n t r e d , and should have d i s p e n s a r y ,
rrnternity and c h i l d welfare s e c t i o n / and a d u l t education
f a c i l i t i e s and a l s o young c h i l d r e n should r a t h e r be encouraged
t o get education a t t h e welfare c e n t r e .
8) For enabling the exporters and manufacturers of b r a s s -
wares a t Moradabad to offer t h e i r q u a l i t y goods a t competi-
t i v e p r i c e s in the i n t e r n a t i o n a l markets. The U.P. Govern-
ment may consider the a b o l i t i o n of s a l e s tax on brass scrape
purchased from o u t s i d e the S t a t e for rtanufacturing the b r a s s -
wares t o be exported t o the foreign c o u n t r i e s a t competitive
prices.
9) There i s a l i t t l e p u b l i c i t y for brasswares abroad
excepting through o f f i c i a l c h a n n e l s . The brassware manufac-
t u r e r s a s s o c i a t i o n should be enabled to launch an a d v e r t i s i n g -
cuin-exhibition cami:>aign abroad on c o l l e c t i v e b a s i s .
99
]0) I t i s a i a o auyyoctod LIuiL oti oxporL [Link] cciitrn,
equipped with commercial d i r e c t o r i e s , magazines and p e r i o d i -
c a l s ohould be ofx^n a t Moradal^ad for continuouc; reference
t o the t r a d e .
If i t i s dono/ a new e n t h u s i a s t i c force of entrepreneurs
w i l l develop, which w i l l f l o u r i s h the i n d u s t r y on sound l i n e s .
Finding out s u i t a b l e s o l u t i o n s t o the problems being faced
by i t and nvaking i t f u l l y able t o meet the challenges ahead.
In sum, for the future development of the i n d u s t r y -
1) Raw n a t e r i a l w i l l have t o be arranged a t international
prices.
2) Items should have t o bo introduced t h a t a r e aimed
a t niasG consumption with adequate a e s t h e t i c appeal
without loosing the fundamental of a r t which
r e p r e s e n t s the country,
3) The product development v i s - a v i s t e c h n o l o g i c a l
improvement i s a must. This does not n e c e s s a r i l y
mean displacemont oF labour but with the higher
t a r g e t s of p r o d u c t i o n . This v;ould mean supplemen-
t i n g the human e f f o r t s .
4) Providing b e t t e r e l e c t r o p l a t i n g and lacquering
f a c i l i t i e s , giving colour e f f e c t , where improvements
lOO
could do a l o t t o give new dimensions and appeal
t o the p r o d u c t .
5) In the ni£irketinq f i e l d , e f f o r t s have t o be made t o
contact while s a l e r s or even provide clirect r e t a i l
o u t l e t s t o augment the volume on exports and thus
foreign exchange e a r n i n g .
6) Give l a r g e r p u b l i c i t y thereby generating den^nd.
7) Avoid i n t e r n a l c o m p e t i t i o n s .
8) To some e x t e n t have d i r e c t c o n t r o l over production.
9) completion of export f o r m a l i t i e s a t a s i n g l e p o i n t .
10) To provide b e t t e r l i v i n g and working conditions t o
the a r t i s a n s and v/orkers .
B I B L I O G R A P H Y
B I B L I O G R A 1' II Y
BOOKS:
1. A G R A W A L , A.N. / Industrial Problems of India,
Ran jit Printers, New Delhi, 195?.
2. Agrawal/ C.P., Export Credit and .Financing in India,
Indian Exporters Institute, Chandausi,
1972.
3. BASU, S.K., P l a c e and P r o b l e m s of small-Scale
I n d u s t r i e s , A. M u k e r j e e & Co.,
Calcutta, 1957.
4. CHANDER SHEKAR srTicill ,'Scalo a n d H o u s e h o l d Industrioa
SHETTY i n a D e v e l o p i n g Economy, A s i a Publi-
c a t i o n s , Bombay, 1 9 6 3 .
5. DUA, DHANRAJ, S m a l l I n d u s t r i e s and H a n d i c r a f t s ,
Survcxlya P u o l i c a t i o n s , D e l h i , 1 9 6 7 .
6. DI-iAR, P.N., Role of small Enterprises in India,
An Economic Development, Asia Publi-
shing House/ Bombay, 1958.
7. FAROOQUEE, Q . H . , s m a l l S c a l e and c o t t a g e I n d u s t r i e s as
a Means of P r o v i d i n g B e t t e r Opportu-
nities for Labour in I n d i a , A.M.U.
Publications, Aligarh, 1958.
8. SAMI-UDDIN, Entrepreneurial Dcvelopmont in India,
RAHMAN, M . ,
KHAIROOWALA, Z.U.,
Mittal Publication, New Delhi, 1989.
HIFZUR REHMAN.
Jl
9. GUPTA/ K. , Srrull S c a l e Industries,
D e h a t i P u s t a k B h a n d a r , New D e l h i /
]965.
10. JAIN/ O.P./ Snicill I n c J u s t r y E x p o r t s /
n . ClMnd f^ CO., D o l l i J , 1 9 7 1 .
11. JAIN/ S.C./ Small Scale Industry Hand Book,
Nabhi Publications/ New Delhi/ ]971.
12. KUCHHAL, S . C , The Industrial Economic of India/
Chditanya Publishing House, Allahabad,
1987.
13. KHANNA, S.S', The Brss Industry in Uttar Pradesh,
Asia Publishing House, Bombay, 1963
14. MEMORIA, C.B., Organisations and Financing of
Industries in India, Kitab Mahal/
Allahabad/ 1982.
15. N I S A R AHMAD, P r o b l e m s a n d Mandgefiiont of a m a l l S c a l e
and c o t t a g e I n d u s t r i e s /
Deep & Deep P u b l i c a t i o n s , New D e l h i ,
1 987.
16. NASIR, TYABI/ Tho S i r u l l I n d u s t n ' o n P o l i c y In I n d i a ,
Oxford U n i v e r s i t y I t e s s , C a l c u t t a ,
]989.
17. OLIVER, ROBERT, W., The P o l e of s m a l l S c a l e M a n u f a c t u r i n g
i n Economic D e v e l o p m e n t / V J a s h i n g t o n ,
1966.
I l l
18. RUDDAR DATT f> I n d i a n Economy, [Link] & Co., Ltd.,
SUNDHARAM, K.P.H., New D e l h i , 1 9 8 5 .
19. RAO, R . V . , S m a l l Tndnstri(^r5 f^ t h e D e v o l o p j n q
Economy i n I n d i a ,
c o n c e p t P u b l i s h i n g C o . , New D e l h i ,
1979.
20. SIVAYY, K . V . & I n d i a n I n d u s t r i a l Economy,
DASS, V . B . M . ,
S . Chand & C o . , L t d . , New D e l h i , 1 9 8 5 .
21. SAMI-UDDIN, D e v e l o p m e n t of E n t r e p r e n e u r s h i p in
India, Mittal Publishing House,
New D e l h i , 1 9 8 9 .
22. SINGH, BALJIT, The E c o n o m i c s of s r t H l l S c a l e I n d u s t r i e s
A C a s e S t u d y of s m a l l I n d u s t r i e s E s t a -
b l i s h m e n t s of M o r a d a b a d , A s i a , 1 9 6 1 .
23. SHOUREE, K . D . , Export Incentives i n Jieveloped and
Developing Economics, India.
24. SINGH, N.N., Scientific Management of small Scale
Industries,
Labvania Publishing House, New Delhi,
1956.
25. VASANT DESAI, Indian Industry "Profile and Related
Issue",
Himtilaya I ' u b l i s h i n g H o u s e , New D e l h i ,
1987.
TV
JOURNALS :
1. Commerce (Weekly), Bombay.
2« Indian Journal of commerce (Monthly), New Delhi.
3. Indian and Foreign ".eview (Fortnightly), New Delhi
4. Journal of commerce (Yearly), Aligarh
5. Reserve Bank of India Bulletin (Monthly), Bombay.
6- Yojna (Fortnightly), Now Delhi.
NENs P A P E R S ;
1. Financial Express (Daily)/ New Delhi.
2« Hindustan Times (Daily)/ New Delhi.
3. The Economic Times (Dally)/ Delhi.
4. The Times of India (Daily), New Delhi.
OTHERS :
1. U.P. Brassware corporation Notes on brassware Industry
of India, Limited. of Moradabad/ 1985.
2' Brassware Manufacturers/ constitution of Bragswaro
Exporters Association. Manufacturers/Exporters
A,T30ciat-i on, 1953.
3. U.P. State Brassware Activities of the U.P. State
Corporation of India,Ltd. Brassware Corporation Ltd.,
i'loradabad, 1986.
A P P E N D I X -A
Some o£ t h e i m p o r t a n t M a n u f a c t u r e r s / E x p o r t e r s of
D r a s s w a r e I n d u s t r y of Moradabad :-
[Link]. NAr4E OF FIRMS PLACE
1. M / S A b u l Hasan & S o n s , Daradari/ Moradabad*
2. M/S Allied International I^hbullah Ganj,
Enterprises, Moradabad .
3. M/S A k b a r B r a s s Product, Qayyum H o u s e , D e p u t y Ganj-,
Moradabad.
4. M/S Ajanta Arts, Chauraha G a l i , Moradabad.
5. M/s Aiiiar Wath & s o n s . i'^ndi Bans, Moradabad.
6. M/s A P p o l o l Y a d e L i n k s , Rampur R o a d , Moradabad.
7. M/s Abid & s o n s . Nai s a r a k , Moradabad.
8. M / S Abdul Majid Abdul Naseetn M a n z i l , Nai Basti,
Rashoed , ( s l i o p - Amroha Uate),
Moradabad.
^. M/S Alisons Export Co., J h a b b o o Chav/k, Moradabad.
10. M/s Ahma(3 B r a s s corporation. G a I s ha h e e d , Purana
Barafkhana, Moradabad.
XI
11. M/S A T O Z , G a l s h a h e o d , Uai Abadi/
Moradaioad.
12. M/S Alam B r o t h e r s S i r Yaqoob Read/ P e e r g l i a i b ,
Exporting corporation. Moradabad .
13. M/S Ashu E x p o r t s , Gandhi Naqar, Moradabad
14. M/S Azim & Cotiipany-/ Tobacco s t r e e t , Moraelabad
15. M/s Ahnad S o n s , R a f i House, G a l s h a h e e d ,
Moradabad•
16. M/S Dedi Metal I n d u s t r i e s , c o u r t Road, Moradabad.
l7. M/s B h a t i a Overseas E x p o r t s , G a l s h a h e e d , Moradabad.
18. M/S Brans C o r p o r a t i o n of 3 6 / D - 2 1 / Bara 3hah S a f a ,
Ind ia , Moradabad.
19. M/s cosmic Art P r o d u c t s , Peergha i b , Moradabad
20. M/s C L . Talwar & S o n s ( P ) L t d . , D e l h i Road, I-lajhola,
Moradabad.
21. M/s C i t i z e n Exports, Idgah Road, Moradabad.
22. M/s Coinbined E x p o r t s , Rampur Road, Moradabad.
23. M/s C.L. Gupta ^ S o n s , Rarnpura Road, Moradabad
24. M/s c o t t a g e Art Eni^'orium, Prince Road,
Opp: Ansar Inter College,
Moradabad.
I l l
25. M / S Dauji E x p o r t s , Rampura Road/ Moradabad.
26. M / S Duggal & s o n s . Kothiv/al Nagar, Moradabad.
27. M/s Diamond I n d u s t r i a l corpn.. Sambhali G a t e , P . B . No.223/
Moradabad.
28. M / S Diwan & s o n s . Kothiv;al Nagar, [Link]. 1 5 1 ,
Moradabad.
29. M/S D a u l a t Ram & S o n s , 7 1 / A , P r i n c e Road,
H a r p a l Naqar, P . B . N o . 2 8 2 ,
Moradabad.
30. M/S E v e r e s t o , Ali Manzil, Civil Lines,
c / o s h r i S.A. C h a u d h r i , Moradabad,
31. M/S Emyoo P r o d u c t s , Bhatti Street, Moradabad
32. M/S E a s t e r n N o v e l t i e s C o r p n . , Bhatti Street, Moradabad
33'. M/s Export House, Chaumukhapul, P . B . No.40,
Moradabad'.
34. M/s Evergreen I n t e r n a t i o n a l , P r i n c e Road, Moradabad.
35. M/S E . M . C . International, Thatera s t r e e t , Moradabad
36. M/S F . A . R . Brass P r o d u c t s , P r i n c e Road, P . B . N o . 1 4 9 ,
Moradabad.
37. M/s F a z a l s o n s Handicrafts, Peerzada, Hayatnagar,
P . B . N o . 4 6 1 , Moradabac3
IV
38. M/s Globe Metal I n d u s t r i e s / Kothiwal Nagar/ Moradabad
39. M/s G u l a t i E x p o r t s / A k h i l e s h Chawk, S t a t i o n Rd-,
Moradalxid •
40. M / S Globe E x p o r t s , C-96y Gandhi Nagar,
Moradabad.
41. M/S Gulab n r a s s , QuasJ T o t a , Moradat)ad
42. M/s Goel Art smporium. A - 4 2 , Gandhi Nagar,
Moradabad.
43. M/S H a j i s o n s , Khokaran S t r e e t ,
Moradabad.
44. M/S H a j i Abdul Ahad Bhatti Street, Moradabad
Abdul Rahman,
45. M/S Haq [Brothers, Bhatti s t r e e t , Moradabad
.46. M/s H a j i K a l i a n & S o n s , Bara S h a h s a f a , Moradabad
47. M/s I n t r a Deco c o r p o r a t i o n . Deputy G a n j , Moradabad
48. M/S I n t e r s e a s Traders, Bara S h a h s a f a , Moradabad
49. M/S I n d i a n A r t Industries, Nawabpura, Moradabad
50. M/S J . P . I n t e r n a t i o n a l , Chauraha G a l i , Moradabad
51. M/S J a n s o n s & company. Galshahecd Road, Moradabad
V
52. M/S J . K . lilxi'orta, JwUirjjhahcofJ , liKiIra [Link];,
Moradabad.
53. M/S I<ala Bhawan, C i v i l Lines / MoradabacJ .
54. M/S Kamil Bhai I s r m i l ji. Thatera s t r e e t , Moradabad
55. M/s Kuniud A r t Industries, Lohagarh, Moradabad.
56. M/S K . K . Gupta A s s o c i a t e s , Mufti T o l a , Behind
Moradabad I n t e r C o l l e g e ,
Moradabad.
57. M/S Kailash Kxports, 22-Adarsh Naqar, Idqah Road,
Moradabad.
58. M/S Lecra T r a d i n g corpn.. Opp>: s t a t e Bank, K a t q h a r ,
Barwalan, Moradabad.
59. M/S Mysore E l e c t r o p l a t i n g Galshaheed Road, Moradabad
works,
60. M/s Metal P r o d u c t s of India, P r i n c e Road, P . B . No.49,
Moradabad.
61. M/s M u l t i p l e E x p o r t s , Raj Raj Bhawan, Kothiwal
Nagar, Moradabad.
62. M/S N o v a l t y l e a d i n g Corpn., Bhatti Street, [Link].340,
Moradabad.
63. M/s Nadeem I n t e r n a t i o n a l , Near Ansar I n t e r C o l l e g e ,
P r i n c e Road, Moradabad.
V:L
64. M/S New Rac3icnt: Brans K i a r a u l , P . B . No. 144,
Artwaro/ Moradabad.
65. M/S New Indo F o r e i g n T r a d e r s Naseem K a n z i l , Nai B a s t i /
corporation/ Moradabad.
66'. M/s Overseas Handicrafts, New c i v i l L i n e s , [Link].308,
Moradabad.
67. M/S Overseas E x p o r t s , New c i v i l L i n e s / P . B . N o . 1 3 6 ,
Moradabad.
68. M/S P i o n e e r A r t s India, P r i n c e Road, Moradabad.
69. M / S Paramount T r a d i n g C o r p n . , Tavela S t r e e t , Moradabad
70. M/S Paramount Products(P)Ltd., Ua z i To l a , Nea r I tv/ar -V^ •
B a z a r , [Link]. 2 3 3 ,
Moradabad.
71. M/S P u r i T r a d i n g C o r p n . , Galshaheed Road, Moradabad
72. M/s Paramount E x p o r t s ( P ) L t d . , Mohd. A l i Road, Moradabad.
73. M/S Premier Exterprises. 63-Nai S a r a k , [Link]. 1 3 1 ,
Moradabad.
74. M/S P r o g r e s s i v e Trade L i n k s , Lai Bagh, [Link]. 3 7 6 ,
Moradabad.
75. M/s Ruby B r a s s Industries/ Nai B a s t i , Moradabad.
76. M/s Raj Kamal E l e c t r o p l a t o r s , C h a u r a h a g a l i , Rampur Road,
Moradabad.
vli
77. M/s S t a l w a r t Electroplating Idgah Roa<I, Moradabad .
Works ,
78. M/s Shams on En^terprises / Shamshad M a n z i l , F r i n c e
Road/ Moradabad.
79. M / S shaheen Art Industries, T h a t e r a S t r e e t , Moradabad
80. M/s S p a r k E n t e r p r i s e s , E i a r a d a r i , Moradriba(i.
01. M/s sun R i s e H a n d i c r a f t s , Near Makhan Sliah k i 2:arat,
Kisrau 1, Moradaba* 1.
82. M/s S t a l v / a r t International, Rampur Road, Moradabad.
83. M/s Sun I n t e r n a t i o n a l T r a d e r s , Malviya Naqar, Behind
Kashipur Hus S t a n d ,
Moradabad.
84. M/s Talwar & K h u l l e r , Rampur Road, Moradabad.
85. M/s Talwar T r a d i n g C o . , Kothivral Nagar, Moradabad
86. M/S T^j Metal Handicrafts, Tobacco S t r e e t , Moradabad
87. M/s VORKA E x p o r t e r s ( P ) Ltd., Dalwalan - K a t g h a r ,
Moradabad.
88. M/s Vinod International 2 2 / c - l l / Dallam S t r e e t ,
Products, Moradabad.
89. M/s V a l i B r o t h e r s , T e h s i l S c h o o l , Moradabad
90. M/s Wazir Chand & S o n s , Kothlwal Ifegar, Moradabad
viiJ
yi- M/S Wajid Sons H c i n d i c r a f t s , t l - i n c e Road, [Link]. 79,
Moradabdd.
92- M/s I'/aris Sons & compnay/ Waris M a n z i l , Tavcla St.,
Moradabad.
93. M/s Wajid sons E x p o r t s ( P ) L t d . , P r i n c e Road, Moradabad.
94. M/S Meridian Exports, S h i d i S a r a i , Hadi Road,
Moradabad.
95. M/S G . D . E x p o r t s , S a l u j a Niwas, C i v i l L i n e s ,
Moradabad.
96. M/S Gift International, 2 2 3 -A , La j pa t na gar ,
Moradabad.
97. M/S s u p e r Enterprises, Mughalpura sai\?qa I ,
House NO.52-F/F-20,
Moradabad.
98. M/S Ever Rest Handicrafts, Faizqanj East, [Link],
M a s j i d , Moradabad.
99. M/s New C r a f t s Exports, F a i z g a n j E a s t , PB N O . 4 2 1 ,
Moradabad.
lOO. M/s I n d i a n I n t e r n a t i o n a l , G a l s h a h e e d , Moradabad.
1 0 1 . M/S A j a n t d Haiidicraf t s , 126/D-21 Bagh Bahadur Ganj,
Moradabad.
XX
1 0 2 . M / S Zuroof liiternational. Darul Hanieed, Bara .shah s a f a ,
Moradabad.
1 0 3 . M/S Saleem A r t i s t i c B r a s s 259-A/ Nai B a s t i / G a l i
Products/ Maniharan, Moradabad.
104. M/S R . D . O v e r s e a s / riuft i Tota 1 / Moradabad
-/
Questionnaire:
1. Name and address of your unit :-
2. Year of establishment :-
3. Which type of business you run :-
a) Proprietorship
b) Partnership
c) Private company
4. Where is the location of your plant :-
a) In congested market
b) Near the market
c) Near the source of personnel
d) Near the supply of raw material
5. What qualification you possess :-
a ) Graduate
b) Non-graduate
c) P r o f e s s i o n a l qualification
d) Technical qualification
6. What experience you possess in b u s i n e s s »-
a ) Year of experience in g e n e r a l
b) Year of e x p e r i e n c e in t h e l i n e of b u s i n e s s
c ) No e x p e r i e n c e
7« DO you have any d i f f i c u l t y i n g e t t i n g raw m a t e r i a l 7
Yes ( ) No ( )
Ki
8. la the raw m a t e r i a l e a s i l y a v a i l a b l e 7
Yes ( ) No ( )
9. Is t h e r e any e f f e c t of n o n - a v a i l a b i l i t y of raw m a t e r i a l
on your p r o d u c t i v i t y 7
Yes ( ) No ( )
10. How you control the raw material :-
a) Through effective purchasing
b) Scientific storing
c) Economic consumption
d) NO
11. Do you have any labour problem 7
Yes ( ) No ( )
12. Do you have operational problem on account of break-
down electricity or lack of technical skill 7
13. DO you feel that the production of such type of goods
require highly trained and qualified persons 7
14. What wage system you adopt in production J-
a) Piece rate system
b) Monthly wage systerp
c) Weekly wage system
15. DO you give bonus or other incentives to your workers 7
16. What is the rate of overtime of workers in your unit :-
a) Below the daily wages
b) Equal to daily wages
c) More than daily wages
Xil
17. DO you manage your firm in a t r a d i t i o n a l way or you
follow the b a s i c p r i n c i p l e s of management in carder to
improve the e f f i c i e n c y of working force and improving
the q u a l i t y of products 7
18. Which f i n a n c i a l i n s t i t u t i o n provide finance t o you : -
a) commercial bank
b) IDBI
c) EXIM Bank
d) P r i v a t e source
19. Is the period of c r e d i t s a t i s f a c t o r y s-
Yes ( ) No ( )
20. What type of security is insisted upon '•-
a) Hypothecation
b) Bank guarantee
c) Pledge
d) Any other
21. State the other problems involved in bank credit s-
a) High interest
b) Too many formalities
c) Delay in sanctioning credit
d) Any other
22* What type of b r a s s goods you produce J-
a) Decorative
XJu
b) House hold purposes
c) Miscellaneous
23. What is the basis for designing your products '•-
a) Indegeneous designs
b) Imported designs
c) As per the instructions of the buyer
d) Any other
24. Who a r e your buyers abroad :-
a ) Pr iva t e
b) Government
c) Departmental stores
d) Defence department
25. Which type of competition do you face ?-
a) Price competition
b) QLBlity competition
cO* Packing competition
d) Any other
26. Is the quality of your products competitive in the
world market 7
Yes ( ) No ( )
27. DO you r e c e i v e any f a c i l i t y provided by the Government
in the form of s u b s i d i e s or d u t i e s imposed on imported
materials 7
XIV
28. IS government policies are favourable for the develop-
ment of brasswarp industry ?
Yea ( ) No ( )
yV
BRIEF HISTORY OF MORADABAD
Moradabad c i t y , approxiitetely 160 krtis e a s t of Delhi,
was e s t a b l i s h e d by Subedar Ru.'Stom Khan during the r e i g n of
the Moghal Emperor Shahjahan. The c i t y was named a f t e r
Shahjahan's t h i r d son Murad. I t has remained famous s i n c e
then for handicrafts.
"The t o t a l geographical area of the d i s t r i c t i s 5,9671
square km. I t s climate i s of the extreme kind very hot in
summer and very cold in w i n t e r - The average r a i n f a l l is
between 417 and 113 5 mm."
The population of Moradabad d i s t r i c t , according t o 1981
census/ was 31.9 lakhsr I t has gone up t o 38 lakhs now. Nearly
15 lakhs People l i v e in urban areas while the r u r a l population
i s about 23 l a k h s . More than 50,000 people come every day from
the neighbouring a r e a s t o v;ork in various t r a d i t i o n a l h a n d i -
c r a f t s and brassware u n i t s .
"The l i t e r a c y r a t e of Moradabad i s far from s a t i s f a c t o r y .
I t was j u s t 17.13% in 1971. By now the male l i t e r a c y r a t e has
gone up t o 19.42% as compared t o female l i t e r a c y r a t e of only
10,33%. This i s lower than even the average female l i t e r a c y
r a t e in u t t e r Pradesh."'^
1. The Hindustan Times/ New Delhi, 17 June, 1989, p . 5
2. Ibid.
XV?i
The p e r c a p i t a income ot Moradabad i s unc of t h e liiglioaL
in Utter Pradesh. The Per day income of c r a f t s m e n could be
some where between l?;;. 50 t o Ro. OO. Most of t h e work i n t h i s
i n d u s t r y a r e c a r r i e d out on c o n t r a c t b a s i s .