CHAPTER PRODUCTION OF FOOTWEAR IN INFORMAL SECTOR...
42
CHAPTER - V PRODUCTION OF FOOTWEAR IN INFORMAL SECTOR OF ATHANI, AGRA AND MADRAS
Transcript of CHAPTER PRODUCTION OF FOOTWEAR IN INFORMAL SECTOR...
CHAPTER - V
PRODUCTION OF FOOTWEAR IN INFORMAL SECTOR OF ATHANI, AGRA AND MADRAS
CHAPTER - 7 TOOTWEAR PRODUCTION IN INFORMAL SECTOR OF ATIIANI, noRn nnonns
5 . 0 INTRODUCTION
In t h i s c h a p t e r , an a t t e m p t is mode to c r l t i c , 3 ~ l y
analyse
(11 t h e f a c t o r s contributed for s e t t l n g up prod, ,c t lon
u n i t s ;
( 2 ) t h e n a t u r e o f work i n t h e u n i t s ;
( 3 ) t h e s u b - c o n t r a c t i n g methods of product ion;
( 4 ) sources, mode o f procurement and payments f o r raw
n a t e r i a l s ;
( 5 ) t h e l e v e l o f mechanlsat lon of t h e units
(6) changes I n t h e p r o d u c t i o n process;
( 7 ) p l a n s f o r expansion of t h e units;
( 8 ) c o s t o f p r o d u c t ~ o n o f malor i tems of footwear: and
( 9 ) l a b o u r p r o d u c t i v i t i e s i n a l l t h e t h r e e c e n t r e s .
The s t u d y r e s u l t s an a l l t h e s e a s p e c t s r e l a t i n g t o
Athanl, Agrs and Madras a re presented l n t h i s c h a p t e r .
5 .1 FACTORS CONTRIBUTING FOR SETTING UP OF FOOTWDAR UNITE
he owners of t h e household units/workshops i n g e n e r a l
c o n s i d e r t h a t f a c t o r s l i k e h e r i t a g e , a v a i l a b i l i t y a f f a n l l y
s k i l s / h i r e d s k i l l e d l a b o u r , market p r o s p e c t s f o r f i n i s h e d
footwear and availability of raw m a t e r r a l s have prompted them t o
s e t up p r o d u c t i o n u n i t s . he weightage accorded t o t h e s e f a c t o r s
i n se t t ing up of t h e units are shown In Table 5.1.
of t h e 221 total responses p u t f o r t h by 105 household
unl t in setting up of t h e u n i t s , t h e f a c t o r s of h e r i t a g e
and a v a i l a b i l i t y o f ~ k i l l . 6 f a m i l y workers have t o g e t h e r c la imed
958 i n Madras, 86% i n A q r a and 6 9 9 111 ~ t . i , ~ , , i . i n t h e ca+p
h o u s e h o l d w o r k s h o p s , t h e h e r i t a g e and a v a i l a b i l i t y O P h l r r , j
workers c la imed u p t o 8 2 % ~n Madras, 7 9 % i n hgra 68%
in iithiini. About 2 5 % o f t h e responses rn ~ a c h cateqory tt,.
u n i t s i n A t h a n l r e l a t e d t o t h e f a v o u r a b l e m a r k e t
prospects. I n t h i s c o n n e c t i o n , I t may be r e c a l l e d t h a t m i g r a t i o n
~ n d s e t t l n g up of new units i n Athani were mainly because of t h e
~ssured m a r k e t i n g s u p p o r t provided by t h e Charmalaya, a market
o u t l e t of K V I C , and t h e LIOKAR procurement c e n t r e , ~ence, i t may
be concluded t h a t t h e Informal s e c t o r of t h e footwear u n i t s have
establ ished s t r o n g l i n k a g e s wi th t h e r n s t i t u t i o n a l s u p p o r t . They
also respond q u i c k l y t o t h e development programmes i n i t i a t e d f o r
t h e i r b e n e f i t . Hence, t h e r o l e of these d e v e l o p m e n t ~ l
a r q a n i s a t i a n s i n the development of footwear industry i s q u i t e
s i g n i f i c a n t and t h i s h a s been examined i n Chapter V I I .
5 . 2 CLAISIPICATION OF UNITE ACCORDING TO NATURE OF WORK
It has been a common not ion t h a t household u n i t s and
household workshops would c o n f i n e t h e i r produat ion activities i n
their own u n i t s . s u t t h e f i e l d f i n d i n g s showed t h a t i n a d d i t i o n
t a own p r o d u c t i o n work, some u n i t s under take job work t o o . There
were a l s o units u n d e r t a k i n g exclusively l o b w o r k . The
c l a s s l f i c a t i a n of " n i t s according t o awn work, job work or both
has been p r e s e n t e d i n able 5 . 2 . f he d a t a presented i n Tnhlr 5 . 2
show t h a t 7 4 % t h e h o u s e h o l d u n r t s and 8 9 % Of h o u s e h o l d
workshops u n d e r t o o k their own product ion and 17% and 7 % o f t h e
respective categor ies of u n i t s found under taking bath awn work
and job work . flowever, t h e e x t e n t of under taking job work by
these u n i t s v a r i e d from c e n t r e t o c e n t r e dependlng upol,
s~ason6 and a l s o an t h e e x t e n t oT l>nksgns Pstahluhed w , t l , r , t l ,n,
units. F o r i n s t a n c e , 19 b t h a n i w h i l e 669; o f tile
household units c o n f i n e d t o t h e m awn product ion, 9% e x c l r i s l v n i y
e t tended t o j o b work and 2 5 % found under taking bath job wnr): ,,,d
,wn work. A l l t h e household workshops i n a thai i l a t tended to + h a i r
,"n work. These workshaps a re ins t rumental i n providing j o b work
t o t h e household u n i t s where both men and hornen were involved i n
"ar iaus o p e r a t i o n s on p i e c e r a t e b a s i s .
I n Agra 91% of the household u n i t s and 8 6 % of t h e
household workshops were found engaged i n t h e i r own work and 9 %
and 7 % o f t h e r e s p e c t i v e t y p e s a l u n i t s were undertakinq jar
work. About 7 % of t h e household workshops and 14% of t h e non-
household workshops engaglng mare than 10 workers \rere depending
e n t i r e l y an t h e j o b work p r o v l d e d by t h e l e a d i n g marketing
agencies l i k e Bata and Carona. These o r g a n l s a t i o n s through t h e i r
well e s t a b l i s h e d nat lanwide networK of wholesale and r e t a i l
o u t l e t s , c o n t r i b u t e d g r e a t l y f o r t h e growth of smal l workshops hy
placing work o r d e r s . ilowever, t h e household enterprises could n o t
get t h i s b e n e i l t jn g e n e r a l from t h e s e agencies a s they were >lot
able t o w i t h s t a n d t o t h e r i g i d ~ ~ e c l f i c a t i o n s i n s l s t e d by wqy o f
raw material inputs, q u a l i t y o f end products and delayed payments.
T ~ I S 6 t r a n g l i n k a g e between t h e i n f o r m a l s e c t o r o f t l lp
production u n i t s and t h e e s t a b l i s h e d Wholesale t r a d e r s l i k e Bata
and camna have p a i ; i t l v e and negat ive inf luences on t h e farmrJr.
~t hab been found t h a t as long a s t h e informal s e c t o r footwear
u n i t s produce shoes i n ~ c c a r d a n c e w i t h t h e r i g i d q u a l i t y
specif ics t ionS ins is ted by the t r a d i n g agencies they could g e t
,,ntinuous o r d e r s and v i ce -ve r s a . under t h i s system, altl,ough
shoes are made i n t h e informal s e c t o r units, they a re branded nr
the p roduc t s o f l e ad ing t r a d e r s . lience, ~n t h e lanq run, thIE
~ys t em works aga rne t t h e i n t e r e s t s of t he productlon units.
I t h a s also been established t h a t tilgh drorpc
has been t ak ing place by t h e marketing aqnn r i e s
r e su l t i ng i n l e s s margins t o t he informal s e c t o r u n i t s , WI,O
~ c t u a l l y produce t h e shoes. The marketing techniques used by
informal s e c t o r u n i t s and i t s consequences an t h e overall
develol,mrnt o f t h e i n d u s t r y h a s been ana ly sed i n t h e n e x t
chapter . I n Madras, 6 6 % of t h e household u n l t s and 80% of t h e
household workshops were engaged In t h e i r own production, w h i l e
25% and 11% of them were engaged both i n own work and job work
r e s p e c t i v e l y The s t r o n g l i nkages with export a r l en t cd mecllanisetf
footwear sectar provided favourable op po r tun i t i e s f o r a new s e t
of workshops i n t h e informal s ec to r a h lob work u n i t s .
The i n s t r t u t i o n a l support grvexi by TALC0 under t h e
programme "Free D l s t r r b u t i a n of chappals fo r School Chi ldren"
played a s j g n ~ f i c a n t role i n job work and t he r eby
c r ea t i ng employment t o t h e informal s ec to r u n l t s ~n Madras. Among
the small e n t e r p r i s e s of t h e informal s e c t o r u n i t s , those l a ck ing
s t i t ch ing /bu f f i ng machines, and screen p r l n t i n g t o o l s provided
job work t o o t h e r units on p i ece r a t e ba s i s . The cliarges normally
range from Rs.2 t o 4 p e r dozen (12) p a i r s depending upan t he
nature of o p e r a t i o n .
~n r e c e n t years, same household workshops and non-
household workshops (mare t h an 10 worker;] s t a r t e d ob t a in ing jot
.,,k from factory units. A Eerlas of work~~iops E ~ ~ J ~ ~ ~ , , ~ vomo,,
have been emerged nearer to the r n ~ c h a n ~ s o d ci icpnr I O Q ,,, ~ ~ r n i l n a d u to act as sub-contractinq units. ~ h i i - . , the m e r ~ i a l i l - r r i
factories not only provided dlrect employment to wornell t o tilp
,%tent o f 80% In thelr premises hut also r o n t ~ - ~ b ~ ~ t o ~ l f o r
lndlrect employment to the women by way of ,ah wotk. his q i v r r n
clear indication that in the footwear industry there has bee,?
,trong linkages between informal and farms1 sectors.
5 . 2 . 1 IMPACT OF SUB-CONTRACTING WORK ON THE PRODUCTION UNIT8
The term "sub-contractlng/job work" 1s a production
in whlcli producers/artisans undertake to produce and
the principals/awners agree to buy the finished products or
cappanents at a pre-agreed prlce. The quantity of the order and
model/design/specificatian of the praduots are agreed to in
the producer is responsible sametlmes for procurement of
r a w materials (although the principal may provlde materials, cash
advance for this purpose and may also rpeoify where they are to
be purchased). ~ f t e r the initial advance transaction, the
producer is not involved in further marketing or the products.
he fundamental basis of sub-contracting relationship in
manufacturing industries 1s on the one hand the principle of
division of labour or specralisation and on the other the
prevalence of lower wages and lower overhead costs in the
informal sector units.
rmp,tting out!, a wage relationship between employer
and employee in which the employee p~oduces products Or
components in his/hec own home or work place, using materials
awned by the and wages are paid on piece-rate basis. The
p ~ o d ~ ~ t ~ a r e thus from the beqznnlng t h e of
emplayer. T o o l s , machines o r other rquipment be ily t , , ~
..player who Puts out the work. Although l n practice it i s
d,ifi~u~t to dlstlng~i~h precisely between sub-contract>ilq n l l l
putting-out relations, the esaentinl difference 1s that puttitlq-
,ut ~ n v o l v e s transactions ~n labour, while ~ u b - ~ ~ n t r n c t ~ , , q
involves transactions i n products of labour. several forms or
types of sub-contracting are distinguished in the literature on
the subject UNIDO' Provides the following classification:
(1) Full capacity sub-contracting or peak load sub-
contracting, wherein due to insufficient capacity in
the priilclpal's firm, a percentage of total output is
regularly sub-contracted
(ii) Specialised sub-contracting wherein sub-contractors
manufacture and supply parts or components on the more
or less permanent basis including the use of
speclallsed machinery or equipment or techniques.
(lii) Marglnal sub-cantractlng, wherein infrequent or slaall
orders are passed on to sub-contractors.
(iv) Cast saving sub-contracting, whereln costs of
productian of sub-contracted rtems are much lower in
sub-cantractor units because of lower overheads, lower
taxes and lower expenses in wages ard other paymerlts to
labour.
--------------....------..--- S.Nanjundan, 31Small and Medium Enterprise. - Some Basic Development I S S ~ ~ ~ ~ C ,
and ~svelapment", No.20, 1987,
UNIDo, vienna.
Various definitions stated above also hold
sublect o f sub-contractinY/lob work among the footwear prnri,,rtinn
units of informal sector ~n Indla The data shown .sable
reveal that in Athanl centre. 3 1 t of tile hol~soholrl l l ~ l ~ + s
undertake job work from the household worknbops especially f o r
the operations wherein skills of the women rile
payments are made on Plece rate has r s which generally varies
depending on the nature o f operations and designs. sametimes, the
principal workshop owner provides raw matsrlals and specifies t h e
designs, sizes, date o f dellvery and place orders to the
household units towards fabricatlam of footwear far which the
labour cost is pald at mutually pre-ayzeed rate 1n additioo,
about 65% of the units in Athanl either yet orders from
Charmalaya (KVIC) or 1,IDKAR for maklng full chilppals.
In Agra, undettak~ny sub-contract work 1s prcdnmlnant
in household workshops 113%) as ayalnst 0% in lhousehald units. As
the household workshops are better equipped with necessary
machines and hired manpower, the wholesale dealers of the !ling-
kl-mandi rnnrket, the leadmy giants of Bata and Carona and the
Government In~titutions like uttar Pradesh Leather Development
and Marketing Corporatlan (LAMCO), the Cliarma Kuteer af W I C ,
Bharatlya Charmadyoy Sangh (BCS - a registered unit of KVICI,
place orders to the workshops for full shoe maklng. In case of
Bata, it either provides raw material* or insists specifications
on the materials to be used. The BCs and charma Kuteer (KVIC)
after inspecting the p o d s issue cheques immediately (upta
R6.2.000 and wco takes two or three week6 in clearing the
bills. payments from are delayed by two to three months. In
t h e case of w h o l e s a l e d e a l e r s of Hinq-kl-mandi payments i raCnd
on "Purcha s y s t e n " wherein two or t h r e e r n o ~ ~ l l ~ ~ ~ , , t ~ , ~ - ; t ,,,, illr
value of t h e bill is deducted as conmission hy tile fl,lal,rlr,- w ~ , n
,,ts as a middleman between t h e Droducer and t h e wj,olesalnr
I n Madras, more t h a n 50% o r t h e two categar i r4 , , , l , t +
.re u n d e r t a k i n g j a b work e i t h e r Irom TAI.co i h i c h s u p p l i ~ c
~arnponents , or i r o n t h e r e t a i l p la t form shops ~n a d d i t i o n to
p r ~ ~ i d l n g c u t c o m p o n e n t s TALC0 pays t h e l a b o u r c a s t f o r
assembling a t Rs.2.60 P e r p a i r a t t h e t lme of procurement . he
~ l a t f a r m s h o p s a lways keep an amount of RS.500/- as a balance due
t o be p a l d t o t h e Producer . The wlde prevalance o f purcha system
reveals t h e n a t u r e of I n t e r l a c k e d markets and ~ t s adverse e f f e c t s
an t h e l a b o u r . F u r t h e r , it i s a l s o g r e a t l y inf luel iced t h e c r e d i t
methods. The s t r o n g interlocked markets h3.j c o n t r i b u t e d f o r t l le
o r r g i n and development o f u n d e s i r a b l e practices m t h e lnfar inal
s e c t o r u n i t s .
5.3 IMPACT OF JOB WORK ON EMPLOYMENT
~ l t h o u g h t h e informal s e c t o r of t h e footwear u n i t s
u n d e r t a k e j o b r :OrR, i t s i m p a c t an t h e emp10)~ment v a r i e s
significantly. he r e s u l t s of such lmpact on l o b work are shown
In Table 5.3. The d a t a given i n able 5.3 r e v e a l t h a t i n ~ t h a n i ,
818 of t h e household u n i t s under taking job work are s a t i s f i e d
with t h e e x i s t i n g system and 76s of t h e u n i t s informed t h a t t h e
sub-contract ing work h a s n o t only provided employment f o r the
lnfarmai artisans in c e r t a i n o p e r a t i o n s b u t a l s o they g e t r e g u l a r
work and a s s u r e d earnings.
A ~ ~ ~ , 63% of t h e household w o r k s h o p s h a d
s a t l s f a c t a r y aplnion an t h e e x i s t i n g system of sub-contracting
,,d 50% of them cialmed t h a t t h e j o b work h a s p r n v 7 r i e , l
In o f Madras, I B S o f LI,O ,,,, i l i ,,,,I
5 6 % of household workshops expressed s a t ~ s r ~ ~ t ~ ~ y afll , io, , n t , r , , , ~
t h s l o b work. Hence, t h e predominance of l ob work systenl o v r n i,,
the lofnrmnl s e c t o r h a s g r e a t l y cootrlbutecl fo r t h e gelrerntloll ,,f
and enhanced e a r n l n g s
5.4 REASONS FOR PROVIDING Jon WORK
As h a s been mentioned e a r l i e r t h e main reasons f a r
j o b work was t o mainta in t h e d e l i v e r y s c h e d u l e , t o
reduce t h e overheads , l a b o u r c a s t s , lack of necessary machines ,
t h e p r e v a i l i n g p r o d u c t i o n process on d i u i s l o n or l a b o u r b a s i s and
s p e c i a l l s a t i o n o f s k i l l s among t h e a r t i s a n s i n s p e c l f i c
o p e r a t i o n s . The level o f i n f l u e n c e of t h e s e reasons i n providing
jab work are shown i n Table 5 . 4 . I t can be deduced from t h e d a t a
given I" T a b l e 5 . 4 t h a t 9 3 % of t h e household workshops i n A t h s n i ,
60% i n Madras and 5 3 % i n Agra provided j o b work t o household
uni ts /household workshops. I n c o n t r a s t t o t h i s , 71% o f t h e
household u n ~ t s i n A t h a n l , 4 8 % i n Madras and 37% i n agra have
provided l o b work f o r c e r t a i n specific o p e r a t i o n s of footwear .
Of t h e t o t a l responses quoted by both t h e c a t e g o r y of
u n i t s far providing l o b work, 33% i n Athani, r e l a t e t o more
turnover f o l l o w e d by 3 1 % towards t imely d e l i v e r y . Among t h e u n i t s
of Agra, a b o u t 2 2 % of t h e responses reflect f o r mare turnover.
21% accounted f o r l e s s investment and 1 3 % accorded f o r low wages.
The reasons f a r p r a v i d ~ n g lob wor t among the u n i t s i n Madras
camprise in terms produot ion turnover ( 2 4 % ) , l a c k of s u i t a b l e
machines far c e r t a i n o p e r a t i o n s ( 2 1 % ) and to manage the
product ion w i t h less investment claimed 19%
5 . 5 SOURCE8 AND MODE OF R A W NaTERInl PRDCUREMEN~
The data on the sources elf procutiltl~cl~t of raw
by the footwear units and the node of paymnnt s,,awn l . n ~ , ~ p ,, ,,
indicate that more than 80% of L l l e respansps quoted by i,,>ei,
household unlts and worl~shaps in Atlranl c la ln l fd that they i,,r,.l,rr
,,w materlals from the local bag tanning units or f m m TI,.
market held in Atllanl on every Sunday. &bout 15% of the
responses i n athani related to purchase of raw materials from
far-aif towns llke Miral, KalhaPUr and Belgaum by incurring high
tran~port Costs.
In A q r a , about 958 of the responses quoted by bath
category of units related to procurement of raw materials from
local Hing-kl-rnandi market. One of the advalltages for shoe units
in Agra has been that all the raw materials and accessories of
wide ranging qualities and pr l ce s are available to match the
requirements of all types of shoe manufacturers
Among the household units covered in Madras,
procurement of raw materials ln their respective local areas
claimed 59% of tho responses and the remaining 41% related to the
cut components provided by the TALCO or the wholesale market o f
Perlamet I n Madras. It is worth mentlanlng here that "Periamet"
in Madras (~amilnadu), the biggest leather market in the whole
o f Asia, also bas wholesale shops for non-leather items (Wain,
M.c. ~ubber, ~ c c e s ~ o r l e s , adhesives etc.). he unlts located far
away from this market has to incur considerable amount for
transportation. The artisan familles depending mainly on the cut
components of the TALCO has to face lot of problems in procuring
the cut components and m i l e submitting the finished footwear. To
come t h e Problem of strain and t o reduce t h e t ranspor t
I n V O 1 ~ e d , t h e a r t i s a n s c o l l e c t ~ v e l y enc lac je ,,,to
and s h a r e t h e e x p e n s e s p ~ u ~ ~ a r t i a n a t ~ ~ ~ .
1 , 5 1 ~ MODE OF PAYMENT
The d a t a P r e s e n t e d In Taljle 5 .9 st,ow t l l a t 1 2 ~
the r e s p o n s e s p u t f o r t h by t h e household u n ~ t s and 5 7 8 by t i ln
~ ~ r k s h o p i i i n A t h a n i c l a i m e d t h a t t h e raw m a t e r i a l s were o b t a i n e d
,, c a s h p a y m e n t , f a l l a w e d by 2 2 % h o u s e h o l d u n i t s and 38%
household workshops r e l a t e d t o b o t h on cash and c r e d i t . I t s h o u l d
be noted t h a t i n case of c r e d i t purchase t h e wholesa le d e a l e r s
add t h e i n t e r e s t on t h e v a l u e of t h e purchases I" ~ g r a , y e %and
i a % of t h e responses q u o t e d r e s p e c t i v e l y by t h e household u n i t s
and workshops r e l a t e d t o c a s h payment and t h e r e s t accorded f o r
both c a s h and credit. The c r e d i t s a l es h a s on a c c o u n t of t h e
"Purcha System" t h a t prevailed i n t h e Hing-ki-mandi market . Some
o f t h e w h o l e s a l e s h o e d e a l e r s l n t h l s m a r k e t h a v e t h e raw
mater ia l s h o p s . They p r o c u r e t h e f i n i s h e d s h o e s and p r o v i d e raw
m a t e r i a l s a g a i n s t t h e a d ~ u s t m e n t of b i l l s . I n Madras, a l l t h e
responses quoted by t h e u n i t s clalmed t h a t t h e y procure t h e raw
m a t e r i a l s on c a s h payment only .
5.5.2 WIDE RANGE OF RAW MATERIAL8
*he t y p e a of raw m a t e r i a l s used i n t h e f a b r i c a t i o n of
footwear m a l n l y depends an t h e product-mlu which t h e l n f o r m a l
sector units are fabricating. For i n s t a n c e , i n Athilnl bag t a n n e d
l e a t h e r s a n d *.I. t a n n e d l e a t h e r t i t - b i t s a re used In t h e
manufacture of ~ ~ l h ~ ~ ~ ~ i happ pals rrhereas f u l l y f l n i s h e d l e a t h e r s
far uppers, sale leathers , l e a t h e r boards , N.C. r u b b e r s h e e t s ,
PVC, PU, and other a c o e s s a r i e s like c o u n t e r s ,
, t i i f e n e r e , b u c k l e s , a d h e e l v e s a r e extensively u s e d t he
o f S h o e s i n Agra.
S u b s t i t u t e s f a r l e a t h e r , namely t h e rexi", foam, bnl,lsl,
f o a m , l e a t h e r b o a r d , micro c e l l u l a r rubber sheets and bun.ar f o r
sales end p a s t i n g adhesives l i k e Super band, M ~ C ~ O band are ust.d
i n the f a b r i c a t i o n o f n i x e d l e a t h e r footu,ear i n l a d r a s . ~ e n c ~ , a
" ~ d e range o f r a w m a t e r i a l s depending on product ion of v a r i o u s
categor ies of f o o t w e a r and d e s i g n s are used i n t h e informal
sector of t h a footwear i n d u s t r y . The c o s t e f f e c t i v e n e s s of t h e
raw m a t e r i a l fornls t h e Prlrne f a c t o r i n purchasing end using such
materials i n t h e p r o d u c t i o n . I t is g r a t i f y i n g t o n o t e t h a t t h e
informal s e c t o r footwear u n i t s of Agra and Athani p l a y a v e r y
s i g n i f i c a n t r o l e i n c o n v e r t i n g t h e t a n n s r y w a s t e s v i r . t h e
l e a t h e r t i t - b i t s a n d t r i m m i n g s i n t o w e a l t h . The l e a t h e r c u t
pieces o b t a i n e d from t h e tanneries a re used f o r Inner l i n i n g s ,
preparat ion o f s t i f f e n e r s and c o u n t e r s t h a t go i n shoe naklng.
The E.I. l e a t h e r t l t - b l t s a r e used f a r u p p e r s , v e n i e s a n d
s t i t c h i n g m a t e r i a l s i n Xolhapurl footwear .
5 . 6 PROBLEMS I N PROCUREMENT OF R A W MATERIALS
The f o r e g o i n g a n a l y s i s show t h e problems encountered by
the e n t r e p r e n e u r s o f t h e t h r e e c e n t r e s i n procur ing t he raw
mater ia ls .
*he d a t a shown i n able 5 . 6 i n d i c a t e t h a t about 40% of
the responses i n b o t h of u n i t s i n Athanl r e l a t e d t o
h l g h c o s t o f bag t a n n e d l e a t h e r s f o l l o w e d by i n a d e q u a t e
a v a i l a b i l i t y of raw . a t e r l a l s ( 3 0 % ) . The o t h e r problems faced by
the a r t i s a n s i n t h i s c e n t r e were non-availability o f q u a l i t y raw
B a t e r i a l s i n t i m e and high t r a n s p o r t c o s t s involved.
In Agra, o f t h e t o t a l rcqponses p l l t r u r t h by ti,r ,,,,,,. regarding raw m a t e r l a l Procurement prablce., *bout lo%
,,sponses r e l a t e d t o h i g h c o s t of flnlsbed l e a t h e r s , Mc ,,,,,,,,,, sheets and o t h e r a c c e s s o r i e s follok,ed by lnndequate a v a i l a h i i i t y
( z o ~ ) . 7 9 % o f t h e r c s p o n s e s among tlln ho4achold iln,ts and r r f
household workshops a c c o r d e d t h a t t h e f l n l s l l f d l e a t h e r s purrl,ncpfl
,re under measured as against t h e normal measurements marked
the l e a t h e r s .
Among t h e h o u s e h o l d u n i t s i n Madras , 3 1 % of t h e
responses q u o t e d on t h e problem r e l a t e d t o high cas t of
leather i t e n s l i k e s Y n t h e t i c / r e u l n , foam and adhesives fa l lowed
by lack of f i n a n c e 21% and high t r a n s p o r t c o s t 18%.
5 . 1 USE OF TOOLS IN THE FOOTWEAR UNITS
The a r t i s a n s i n a l l t h e t h r e e c e n t r e s of f o o t w e a r
production use t h e o l d t o o l s l i k e Awl, Rapi , Hammer, P ince r ,
Fooden l a s t , 3 l e g g e d rron l a s t , Number s e t s . Kurpi , C u t t i n g
knives , N a i l p u l l e r s , Wooden l a g , cuddaph s l a b , Scissors,
Grinding s t o n e e t c . A11 t h e s e t o o l s of iridlgenous n a t u r e are
local ly a v a i l a b l e In t h e r e s p e c t i v e c e n t r e s . ow ever, during t h e
recent years, t h e s e informal u n i t s s t a r t e d us ing some improved
tools l i k e edge d e s i g n i n g , chimta , improved punching s e t s and
screen p r i n t i n g t o o l s . he advantages of t h e s e improved t o o l s are
that they can be e a e l l y handled, reduce t h e s t r a i n , improves t h e
qualrty and f i t t i n g and enhances p r o d u c t i v i t y .
5 . 8 PBODUCT~ON UNITS ACCORDING I 0 LEVEL OF HECXANIGATION
~ n t r o d u c t i o n o f machines i n footwear product ion u n i t s
depends m a i n l y on t h e type of footwear made and t h e financial
Position o f t h e entrepreneurs. ~n t h e product lo" of Kolhapuri
chappals e x c e p t serr lng machine o t h e r o p e r . i t ~ o n s are c.rri.d ,,,,, by hand with t h e use o f l o c a l and Improved tools . ~h~ ,i,in
presented i n T a b l e 5 . 7 show t h a t 1 9 % of t h e t o t a l responcp., i l l
,,,, of household t i n i t s and 3 2 % a m n g t h e sorkshaps in
t h a t t h e y use sewing machines f o r tipper s t i t c b i l , s
The s h o e p r o d u c t i o n I n Agra irlvalves machines l i k e
b u f f i n g , s t a n p i n g , P a s t i n g , s k i v i n g and a i r compressors .
5 2 8 of t h e responses among t h e household workehops i n ngrn
~lai ined t h a t t h e s e u n i t s use same of t h e s e machines whereas
household u n i t s use o n l y t h e sewing and b u f f i n g machines. h he
~ t h e r o p e r a t i o n s are done by hand only. In t h e same way, t h e
household w o r k s h a p s i n Madras possess s e w i n g , b u f f i n g and
stamping machines whereas household u n i t s manage with sewing
machine. The u n l t s l a c k i n g even t h e b a s i c machines l l k e sewing
depend on l a b work f o r such o p e r a t i o n s . The emerglng t r e n d s of
m s a r t i n g t o use new t o o l s by some of t h e u n i t s amply demonstra te
t h e t e c h n o l o g y t r a n r f o r m a t l a n and m o d e r n ~ s a t l o n . T h e r e new
methods a r e g a i n i n g p o p u l a r i t y i n a l l t h e c e n t r e s i n r e c e n t
y e a r 6 T h u s , t h e f o o t w e a r i n d u s t r y 1 s an t h e t h r e s h o l d o f
technological change and a w a i t i n g s o c i a l changes which w i l l have
far r e a c h l n g e f f e c t s on t h e informal s e c t o r .
9 CH&NDEG IN PRODUCTION PROCESS AND IMPACT ON EMPLOYMENT
Both household u n i t s and household workshops c o n t a c t e d
in t h e t h r e e c e n t r e s have e f f e c t e d changes i n t h e product ion
process and designs in with t h e changes i n oonsumer
t a s t e s . The survey r e s u l t s presented i n Table 5 . 8 reveal t h a t 54%
of t h e household u n ~ t s and 8 6 % of household workshops i n Athani ,
6g% and 7 3 % o f r e s r l e c t l v e u n i t s ul Agra and about 7 0 % bob,, it,-
, , tegar ies o f u n i t s In Madras reForted that they have int ror l , ,c i .~
y a i i o ~ ~ c h a n g e s during t h e l a s t 10 yea r s i n t h e p r o d l l c t l o l l
sys tem 80% of t h e workshops i n Athanl, 2 7 % i n ~ g r a and 53% j,,
~ ~ d ~ a s have r e p o r t e d t h a t t h e s e changes c o n t r i b u t e d ror phe
a d d i t i o n a l employment of a r t l s n n s S p e c i f l c changes i n ht i tani
centre comprise u t i l i s a t i o n o f l e a t h e r t i t - b l t s obta ined from t h e
tanneries f a r conversion i n t o uppers and use of vegetable tanned
BoIe l e a t h e r i n p l a c e a f t r a d i t i o n a l beg t a n n e d
l e a t h e r I n A g r a , s u b s t i t u t e s of n a n - l e a t h e r i t e m s l i k e
m i c r o c e l l u l a r r u b b e r sheets, ready made PU/PVC so le s , l e a t h e r
boards and s y n t h e t i c c l o t h fo r uppers have been t h e prominent
~ h a n g e s . The p r o d u c t l o " o f l i g h t moccasin t y p e of shoes for g e n t s
in preference t o heavy l e a t h e r shoes has been another change
i n t r o d u c e d Converslan o f l e a t h e r j l h a t h e r b o a r d s c r a p s i n t o
s t i f f e n e r s and c o u n t e r s h a s been another l ine of development
dur ing t h e l a s t 1 0 y e a r s . The p h y s i c a l s t r a i n and d r u d g e r y
involved i n n a r l i n g and s t i t c h i n g t h e s a l e s by hand has been
replaced by i n t r a d u c i n g p a s t i n g methods uslrlg q u a l i t y adhesives
and compressors .
In Madras, t h e u n i t s whioh were f a b r i c a t i n g o i l chrome
lea ther c h a p p a l s moved towards rexin upper and bunwar s a l e
footwear and p r e s e n t l y I n prodt lc lng law c o s t mixed
leather f o o t w e a r us ing ~ y n t h e t i c m a t e r i a l s i n v a r i o u s desigl ls
Viz. J u b i l e e , Quowadies and Walker.
5.10 DEQION CHANGES IN THE PRODUCTION U N ~ T ~
In Athanl, 7 0 % of t h e household units and ah%
workshaps have changed t h e i r d e s i g n s cram ordinary Xapsi type to
d ~ f f e r e n t d e s i g n s o f u p p e r s w i t h decorations as shown In
3 . 2 .
The CharmalaYa I X V I C I I l as a i m developed and prnvtded
f a s t moving d e s i g n s t o t h e informal u n i t s . ~t has
fabrication of h i g h P r i c e d quality footwear wl th f i n i s h e d chrome
leather a s u p p e r and Pressed v e g e t a b l e tanned l e a t h e r f a r s a l e s .
with a view t o I n c u l c a t e advanced s k i l l s ~n t h e f a b r i c a t i o n of
specia l t y p e s of f o o t w e a r , group of a r t l e a n s s e l e c t e d f a r t h i s
purpose were k e p t cans t an t ly under t h e c a n t ~ l , o o u s s u p e r v i s i o n of
highly s k i l l e d workers bought from Bombay and Kanpur
In Agra. 78% of t h e household u n r t s and 8 2 % n f t h e
household workshops have changed t h a n designs iiom old and heavy
types o f O x f o r d . Derby, Ambassador s h o e s t o l i g h t moccaein,
I n q u i l a b , N O " - l e a t h e r Gola t y p e s and 1 ,adies B e l l a r i n a s o f
attractive hand k n i t t l n g s wi th d i f f e r e n t colaured l a c e s . 'The
s u b s t i t u t e s f a r l e a t h e r soles v l r . PVC, PU and a r i s t o c r a t sales
are being u s e d w i t h s imple p a s t i n g methods.
Among t h e h o u s e h o l d u n i t s / w o r k s h o p s o f Madras , a
complete change of mare t h a n 90% r n t h e d e s l g n s and product ion
process had t a k e n p l a c e . he l e a t h e r footwear production has beer1
replaced by mixed l e a t h e r low cost footwear by us ing r e x i n ,
banlan foam, l e a t h e r bohrd and rubber s o l e materials . By u s l n g
these m a t e r i a l s different designs v i z . Jub i l ee , ~ u o w a d i e s , cup
sandals, walker and walkman as popular ly known in the P l a t f o r m
sales are being made. ~ l t h o u g h t h e s e i t e m s are l e s s
durable, the producers Preferred to make them due to the hig),-,
p l ~ d l l ~ t m n and enhanced returns wtth less workzng
these changes in the Production Process or footwear ~n lnformnl
units have v e r y signlficantiy contributed towards
d ~ ~ e ~ o p m ~ n t of new designs, use of wide range or raw
introauctjan of innovative tools and techni~ues in production atld
reached to a stage of initiating madernisation. ~ h e s ~ c~langes
h.ve opened up new vistas of development ln the footwear units
sector in India.
1.11 UNITS SHIFTED FROM LEATHER TO MIXBD LEATXER IOOTWEB.R
Non-leather materials such a s reuin, banian foam,
canvas cloth, leather board, rubber sheets and PU sales play a
v e r y significant role in the informal sector of footwear
a s substitutes to leather because o f their cost
&dvantage. Some of the production units have shifted from the
product ion of leather footwear to law coat mixed leather footwear
due to the advantages and reduction i n worklng capital, higher
productivity and leS6 strain in fabrication and high demand from
the low income groups. The number of units shifted to mixed
leather footwear production and the reasons thereof are presented
In Table 5.g. he data given in Table 5 . 9 spell out that in
Madras, 83% of the household units and 60% of the warkshops had
already shifted to mixed leather law cost footwear production as
mentioned earlier. 1" ~ g r a too, 13% of the workshops and 14% of
the household units had changed to mixed leather shoe production.
me rapid ~hifts in the production of leather footwear
to mixed leather footwear is the net rersult of the operation of
several cruoial factors such as cost effectiveness, employment
for women ( f e r n i n i s a t i o n ) and high demand from middle and law
income group" F u r t h e r , t h e s e s h i f t s r n p r o d u c t i o n met),ods
s t rengthened t h e P r o c e s s of s t r u c t u r a l changes, modernisat ion and
i n t e r l o c k e d markets i n t h e i n f o r n a l sector. Hence, i t can be
~ ~ n ~ l u d e d t h a t t l i e r e h a s been very significant change I n t h o
p r ~ d ~ ~ t i o n p r a c t i c e s and raw m a t e r ~ a l s usage in t h e i , , fo l ln l l
,,=tor of t h e footwear u n i t s i n a l l t h e t h r e e c e n t r e s o f t h o
study.
5.12 PLANE FOR EXPANSION AND DIVERSIFICATION OF PRODUCTION
The f u t u r e expansion plans of t h e production u n i t s by
way o f i n f r a s t r u c t u r a l development , d i v e r s i f i c a t i o n and
enhancement a t p r o d u c t i o n h a s a d e f r n i t e r o l e t o p l a y i n
i n c r e a s i n g t h e employment and t h e growth of ~ n d u s t r y i n t h i s
s e c t o r . The r e s p o n d e n t s vlews on t h e n a t u r e of such development
plans a s shown i n Table 5.10 r e v e a l t h a t 57% of t h e household
u n i t s i n A t h a n l , 4 0 % In Agra and 6 6 % i n Madras are i n t e r e s t e d i n
expanding t h e l r p r o d u c t i o n a c t i v i t y ln c o n t r a s t t o 7 3 9 of
household workshops ~n Athani , 53% i n Agra and 61% 11) Madras. Out
of t h e t o t a l r e s p o n s e s expressed by both t h e c a t e g o r i e s of u n i t s
i n r e l a t i o n t o t h e n a t u r e of p l a n s more than 80% of t h e unlts i n
a t h a n i a n d a g r a h a v e been t o w a r d s d i v e r s i f i c a t i o n and f o r
enhancing p r o d u c t i o n whereas about 90% of t h e u n i t s i n Madras
r e p o r t e d f a r e n h a n c i n g p r o d u c t i o n and t l i e need t o b u i l d up
l n f r a s t r u c t u r a l f a o l l l t i e s .
5.13 COST OF PRODUCTION OF FOOTWEAR
The deal wi th t h e s t r u c t u r e of
the coat 09 of d i f f e r e n t t y p e s of footwear in t h e
informal s e c t o r .
TABLE 5 . 1 1
COST OF PRODUCTION PER PAIR OF FAPSI FOOTWT.~,R IN --- ........................................................... 8.~0. Items Gents Ladins ................................................................. 1 2 3 4 .................................................................
1. Upper leather 3.00 3.011
2. Lining leather & venies 7.00 2.00
3 . Sole leather 17.00 15.00
4 . Labour 6.00 5.00 ..... ..... Total cost 28.00 ----- 25.00 ----- Unit's selling price to 30.D0 Charmalilya
27.00
oiling cost 1.00 1.00
Stamping 0.25 0.25
Packing 0.25 0.25 ..... --.-. Total cost for Charmalaya 31.50 ----- 2B.50 ----- charmalaya's selling price . . 36.00 32 00 price at consumer level . . 49.25 44.25 % increase of price/pair . . 76% 77% aver cost of production
................................................................. source : Field Survey.
he cost of production per pair of Kalhapuri (Kapsil
chappals for gents works out to Rs.28.00 and for ladies ctlappal
R~.25.00. The raw materials in the total cast canstltute 80% and
the labour content 20%. on an average, the artiaan uolts earn
around ~ 9 . 7 to 8 per pair of chappals by way of labour and profit
margin. average artisan unit having a male and female member
with three children makes around 10 pairs a day. The
collective earnings of the family per day works out to Rs.60-80.
T h e c o s t o f production m e n t i o n e d above may rhR,rqr
s , f g h t l y depending upon t h e nature of desiqrts of tile fo0tWP7,
Far instance t h e p r o d u c t i o n cost ~n case of s a n d a l and ~~~d tor
footwear works o u t t o R5.45 p e r p a i r . Eveit ~n t h e household
~ o r k s h o p s , t h e c o s t of production P e r p a i r of c h a p p a l s r e m ~ i n s
the same. However, t h e p r o p r i e t o r earns more because of t i j e
larqee turnover. Data g i v e n i n T a b l e 5.12 p r o v i d e t h e c o s t of
by i t e m - w i s e p e r p a i r of l e a t h e r s h o e s .
TABLE 5.12
COST OF PRODUCTION OF PER PAIR OF ALL LEATHER IOCCABIN SHOB(ADRIIJ .~.~-...~~~-----------------------------------..-.-.~~~--~..~.~~. s.lo. Items Produced i n
Household u n i t Household workshop ..~~.---.---..--....--.-...--------.--------...~...~~~~.~~~..~.. - 1 2 3 4
1 . Chrome u p p e r l e a t h e r 30 .00 42 00
2 . L i n i n g l e a t h e r 1 0 . 0 0 1 5 00
1. L e a t h e r b o a r d 1 .50 2.00
4 Sole l e a t h e r 18 .00 20 .00
5. Heel t o p 3 .00 4 .00
6 . o t h e r material c a s t s 8 .00 1 0 . 0 0
7 . Labour 16.00 .----
2 0 . 0 0 .-----
T o t a l c a s t 88.50 116.00 U n i t ' s s a l e p r i c e 100.00 135.00 P r i c e a t oonsumer level 170.00 210.00
---...~.~~~.~.~~-~.~~.~--~.------~.------------------------------ Source : F i e l d survey
The c a s t aP production p e r p a l r of a l l l e a t h e r moccns in
shoe works O U ~ to around ~ s . 9 0 per palr ~n household u n i t s
compared to ~ ~ . 1 1 5 in household w o r k s h o p s The l a b o u r c o n t e n t In
t h e c o s t of of shoes i n both t y p e of units works O u t
t o 18% a n d t h e ba lance casts . he difference i n :he c o s t
,f production Per Palr of shoes between these types of u,,its
an account of quality of materials used. The household wo,kc;hops .,, better quality materials to satisfy the spnclficiitini,s by the traders. Although the cost of production and the prices
per palr of shoes at every stage "re mace for the shoes i n
hailsehold worksiiops, they move fast in the market brr;ruce of
their durability, comfortable fitting according to foot sizes and
due to the brand names.
The cast of production of shoes vary from design to
design and depends more on the quantity and quality of the
raw materials used. Even in moccasin shoes if rubber/PVC sales
are used instead of leather, the cost will come down
considerably. In the case of derby shoe or ankle shoe, the
production cost goes up due to usage of more finlshed leather as
upper. ~h~ cost of production of mxed leather footwear by
itemwire is presented in Table 5.13.
TABLE 5 . 1 3
COST OF PRODUCTION PER PAIR OF MIXED LEATHER CHIIPPALS IN MADRAS
S.No. Items ~ c n t s chappals Ladies chappals ~~-~~-.........~.~-~.-~~-~~-~~~~~~~~-------------------------
4
Upper (Rexin) Lining leather Insole (Rexin) Leather board Rubber sole other grinderies Labour cost
Total cast 22.50 18.00 ----- ----- Unit's sale price 24.00 20.00
price at consumer level 30.00-15.00 25.00-30.00 .-.__._______._____--..----..-..--------------------------------- ;ouroe : ~ i e l d ~urvey.
A s m e n t i o n e d e a r l i e r , tile cos t production mi red
lea ther f o o t w e a r i n t h e i n f o r m a l s e c t o r of t h e production ullits
works o u t t o Rs.23 f a r g e n t s chappala and ~ ~ . 1 8 f a r l a d i e s
happ pals OE t h e t o t a l c o s t , l a b o u r constitute and the
, a t e r i a l s t h e r e s t . These law c o s t footwear sold to local
pla t form s h o p s by k e e p i n g t h e margln c i ~ s . 2 p e r p a i r . ~ i l e
adi,antage i n making t h e s e f a o h e a r i s t h a t ~r i n v o l v e s o n l y
p a s t i n g a n d t h e P r a d u c t i v r t y per worker to
l e a t h e r f o o t w e a r . A s k i l l e d worker wi th an a s s i s t a n t can make 1 2
pirs a day and earn a b o u t Rs.70 per day iihlch i n c l u d e s t h e
labour oost and p r o f i t marg in . ilaweuer, t h e a r t i s a n s s u f f e r fnom
lack 0: o r d e r s and I r r e g u l a r rarli. I n such t i r e s , e s p e c i a l l y l a
rainy season, t h e y have t o depend an r e p a i r works o r t o move t o
o ther p l a c e s i n s e a r c h of work.
T h e f l u c t u a t i o n s ln t h e p r o d u r t i o n of f o o t w e a r ~n
h o u s e h o l d u n r t s a n d w o r k s h o p s h a s beer) due t o t h e s e a s o n a l
i n f l u e n c e s of t h e v i t a l f a c t o r s such as demand f a r foo twear , raw
n a t s r i a l availability a n d c l i m a t i c c o n d l t l o n s . The n e g a t i v e
l n f l ~ l e n c e of t h e s e f a c t o r s have a d e t r l n e n t a l e f f e c t on normal
product ion , which u l t i m n t e l y p l a y s a decisive r o l e i n p r o v i d i n g
regular employment t o t h e n r t i s a n s . According t o t h e f i e l d s u r v e y
r e ~ u l t s , a b o u t 60% of t h e u n i t s i n a l l t h e t h r e e c e n t r e & have
repor ted t h e increasing s e a s o n a l v a r i a t r o n s I n t h e i r p r o d u c t i o n .
I" of t h e t o t a l responses p u t f o r t h by t h e
respondents OE b o t h household un i t s /vorkshaps t h r f a c t o r s l i k e
l e s s demand and unfavourable c l i m a t e t o g e t h e r acoounted for 8 0 %
in t h e r e d u c t i o n of foo twear product ion i n r a w saason, *hereae
goad demand for the foo twear , condus ive c l i m a t e and a d e q u a t e
a y a l ~ a b i l i t ~ o f m a t e r i a l s ( t o t h e e x t e n t o f g o t 1 i.rre
r , spanslble For higher Product lo" ~n w ~ n t . ~ and sllmn,er sp,crr, l .
",sever, i n t h i s c e n t r e during t h e rnlny season a l s o t h e a,tic,,,c
do make s o l e s , h e e l s and uppel-5 and k r e p them r e a r i y f o r .
assenbliny i n w i n t e r senson.
In Aqra t o o , 8 5 % of t h e r e s p o n s e s , towordc
i n r a i n y season was claimed by uniavourahle demand and
~ l i m a t e The p r o d u c t i o n of shoes I n Agra reach i t s peak l e v e l i n
winter d u e t o h i g h e r demand from a l l p a r t s of t h e country . Far
children's s h o e s t h e demand e x l s t s b e f o r e r e o p e n i n g o f t h e
ech001s In May and June. I n Madras, 70% of t h e responses were due
t o c l i n a t e and l e s s demand and 2 9 % expressed due t o l a c k of raw
m a t e r i a l s (TALCO c u t components) i n ra iny season. I n c o n t r a s t t o
t h i s , more t h a n 85% r e p o r t e d higher pindliction In w i n t e r and
=umqer ~easons because of s teady demand, c l imate and adequate
a v a i l a b i l i t y of raw materials.
5 . 1 4 P R O D U C T I V I T Y PER UNIT AND PER WORKER
The d a i l y p r o d u c t i o n o f f o o t w e a r p e r u n i t and t h e
labour p r a d u c t i v l t y have been worked out f o r t h e two c a t e g o r i e s
of t h e unlts i n a l l t h e t h r e e c e n t r e s and presented i n Table 5 .14
While a r r i v i n g a t t h e product ion and employment f i g u r e s t h e u n i t s
producing ~ a p s i t y p e o f ~ 0 1 h a p ~ ~ i ~ ~ i n Athni , u n i t s producinq
moccasin s h o e s with s o l e s i n Agra and u n i t s producing
mixed l e a t h e r chappals f a r both gents and l a d l e s i n Madras and
the corresponding employment i n t h e s e u n i t s have been taken i n t o
account.
prom t h e d a t a given i n Table 5 . 1 4 , it can be deduced
t h a t t h e a v e r a y e d a i l y per household u n i t i n Athani
y o r k ~ n o t t o 1 1 p a i r 6 of KolhaPurl c!>appnis as a g a i n s t 7 5
i n a household workshop. With a s tandard devlat ia , , oc 8 a,,fi
, , , f f l c ~ e n t v a r l a t l o n o f 738, t h e footwear product ion nmo,,g the
u n i t s o f Athani varies wlthio t h e product ion l j r n 2 t . of
to 11 p a i r s a day. I.lith regard t o household workshops, t h e
oanf idence l i m i t s o f t h e footwear productrarl i n each u n i t works
out t o 25 t o 45 p a l m a day.
I n an a t t e m p t t o know t h e r e l a t i o n s h i p between
footwear p r o d u c t i o n and employment, t h e c o r r e l a t i o n c o e f f i c i e n t
hss been worked ou t . Among t h e household u n i t s of h t h a n i centre,
the c o r r e l a t i o n c o e f f i c l e n t between t h e product ion of footwear
and workers i n v o l v e d was found t o be 0 . 6 . F u r t h e r , t h i s
c o r r e l a t i o n c o e f f i c i e n t h a s b e e n t e s t e d by u s i n g t - t e s t
f o r r t s s i g n i f i c a n c e . As a r e s u l t , i t w s s founri t h a t
t h e r e is s i q n i f l c a n t r e l a t ~ a n s h i ~ betweell t h e p r o d u c t i a n of
footwear and employment among t h e household unlts o€ Athanil
However, I n t h e case of Household workshops, a l t h a u g l l tllere
e x i s t s p o s i t i v e r e l a t i o n s h i p between t h e product ion of footwear
and employment, it 1s n o t t h a t much significant. The rerason f o r
t h l s nay be due t o t h e pl-edamrnance of job workers ( a s domest ic
out-workers) for same labour i n t e n s i v e operat ions and engaging
h i red workers on p i e c e r a t e b a s i s .
I" case of hgra, t h e moccasin shoe product ion P e r
household u n i t a c c o u n t f o r 10 airs per dsy compared t o 26 p a i r s
in household workshops which hired workers and necessary
machines. ~ r n o ~ g the household units o f Agra, with a s t a n d a r d
deviat ion of 3 p a i r s and a c a e i f l c i e n t v a r i a t ~ o n of 3OI, t h e
p r o d u c t i o n v a r l a t l o n works out t o g t o 12 pairs per ""it.
t h e case o f household workshops, t h e confidence l i m i t E the
o f s h o e s r a n g e s between 2 1 t o 31 pairs per uirlt.
The c a r r e l a t i o n c o e f f r c l e n t b e t w e n t h e p r o d u c t ~ o l r
and e m p l o ~ m e n t among t h e household u n i t s of fou,,,l
t o be 0 .6 , whereas In household worksliops it was 0.2 ~ 1 , ~ test..
o u t for t h e i r s i g n l f l c a n c e reveal t h a t t h e r e has t i p ~ n
~ ~ g n i f i c a n t r e l a t i o n s h i p between production o f s h o e s arid
employment amang t h e h o u s e h o l d u n i t s , whereas t h e r e i s no
s i g n x f i c a n t relationship between production and employment i n t h e
household workshops. T h i s may be on account of use 01 xndigenous
machines , p r o v i d i n g o f j o b work t o o t h e r s ~n same s p e c i f i c
operat ions and errploying of c o n t r a c t labour an p i e c e r a t e basis.
s i m i l a r r e l a t i o n s h i p s h a v e a l s o been o b s e r v e d among t h e
productron u n i t s i n Athani a l s o .
1n ~ ~ d ~ ~ ~ , each household u n i t d a l l y produces 1 2 airs
of mixed l e a t h e r c h a p p a l s as a g a i n s t 2 7 p a i r s i n h o u s e h o l d
workshop. h he p r ~ d u c t l v l t y f i g u r e s canf inlng t o t h e u n i t s of
nadras a p p e a r s t o be l o v e r a l t h o u g h t h e y use " o n - l e a t h e r
mater ia ls b e c a u s e of t h e low product ion r h t h e r a i n y season and
i r r e g u l a r i t y o f work.
T h e c o r r e l a t i o n c o e f r ~ c i e n t was found t o be 0 . 1 2
between product ion of m i r e d l e a t h e r footwear and employment amang
household u n i t s and 0 . 4 3 among t h e household work8hops. I n a n
attempt t o test t h e s e r e s u l t s f o r t h e i r s i g n i f ~ c a n o e , it was
found t h a t t h e r e has been no significant r e l a t i o n s h i p between t h e
Production o f mixed l e a t h e r footwear and workers involved i n b o t h
types o f u n i t s . me l o w e r i n r a i n y season, t h e
l r r e g u l a r i t ~ o f o r d e r s from t h e pavevent sllnps of .,,,,, t h e T A L C O a r e t ) l e malor r e a sons f o r t h i s i n s i g n i f i c A l , t
be tween P r o d u c t i o n of footwear ,lid workers inv,,lan,,
in Madras c e n t r e .
T h e l a b o u r P r o d u c t i v i t y i n t i re h o u s e h o l d ",,its o r
~ t h a n i works o u t t o 4 p a r t ; p e r i o rke r per day. whi le
the l a b o u r p r o d u c t i v i t y i n t h e household u n i t s , t h e female f a m i l y
1 ~ b w r i n v o l v e d UPto 4 0 % of t h e o p e r a t i o n s were a l s o taken i n t o
account ~n t h i s c e n t r e . The c h i l d r e n who h e l p i n v s n i making were
not c o n s i d e r e d a s workers. I n t h e case of household workshops tn
Athani, b a t h t h e male menhers o f t h e households and t h e h i r e d
workers were t a k e n i n t o c o n s i d e r a t i o n a s a c t i v e workers a n d
females i n t h e f a m i l y af t h e workshop owner were n o t c o n s i d e r e d
a s t h e i r r o l e was v e r y l l n i t e d . However, t h e d a l l y p r o d u c t i v i t y
per worker i n t h e household workshapsin Athani accounts fo r 6
pai rs of c h a p p a l s . It may be noted t h a t f o r t h e l a b o u r i n t e n s i v e
a p e r a t i a n s , p a r t of t h e work from t h e household workshops is
glven out an job work b a s i s b u t i f such joh workers are a l s o
t r e a t e d a s workers t h e n t h e p r o d u c t i v i t y p e r w o r k e r w i l l
n a t u r a l l y b e l e s s t h a n 6 p a i r s a day.
The d a i l y p r o d u c t i v i t y p e r worker i n t h e household
u n i t s of Agra works o u t to 3 p i r e of shoes a day a s a g a i n s t 4
p a i r s In w o r k s h o p s . t h e shoo p r o d u c t i o l l i n v o l v e s mare
o p e r a t i o n s a n d complicated ~n n a t u r e t h a n c h a p p a l s , t h e
PrOduot iv i ty a l t h o u g h l e s s b u t f e t c h e s h i g h e r l a b o u r c o s t . The
higher p r o d u c t i v i t y per worker In household workshops i n Agra
Compared to t h e hausehold "nit. is on account a f ( a ) u t i l i s a t i o n
,f necessary macilines. (bl Payment of wages on prece rate
to t h e workers Ilel-e a l s o t h e a c t l v f male workers t h e family
,f t h e workshop owner were only considered a s product ive work.rs
but not the o t h e r f a m l l y members.
I n M a d r a s , t h e d a i l y p r o d u c t i v i t y pe r w o r k p r in
household u n i t works o u t t o 7 p a i t s of mined l e a t h e r footwear as
against 6 p a i r s i n household workshops which should normally be
,me due t o t h e use of non-leather m a t e r i a l s . The reason f o r l e s s
p r o d u c t i v i t y i n t h e workshops was on account of wsge payments t o
the h i r e d workers on d a i l y b a i l s but not an p i e c e rate b a s i s .
~ l t h o u g h women In t h e household u n i t s and i n t h e familes of
household workshops a s s l s t i n j u s t folding and adhesive p a s t i n g
operat ions , t h e y were n o t t a k e n as f u l l time workers.
6 . 1 4 . 1 LABOUR PRODUCTIVITY - COMPARISON8 I n an a t t e m p t t o compare t h e labour p r o d u c t i v i t y i n t h e
f a b r i c a t i o n of shoes i n t h e ~ n f o r m a l sector of t h e Agra shoe
industry , t h e comparat ive f i g u r e s of t h e smal l e i i t e r p r l s e s of
some of t h e developed c o u n t r i e s were considered. The d a l l y l a b o u r
productivity o f 3 p a i r s shoes i n household u n i t s and I p a i r s i n
household workshops of Agra can very wall he compared with t h a t
of 3 . 7 p a i r s i n USA, 3 . 8 p a u s ~n I t a l y , 3 . g p a l r s i n Spain , 4 . 2
p a l m i n France, 3 . 5 p a i r s i n Germany, 2 . 6 palrs i n UK and 2
pairs i n 6 r a r i l 2 .
2 . I.L.0. : 78~epo r t on ~ r n p l ~ ~ r n e ~ > t and Worklilg Condi t ions and C a m p e t l t i v e n e s s i n t h e Leather and Footwear I n d u s t r y " , Report 11, Geneva, 1992, p . 9 7
5 .15 CEnNOE IN PRODUCTION TECilNIQUEs IN TIrE I N ~ O ~ L G ~ ~ T ~ ~
Availability of s k i l l s o r t h e family
, k i l l e d workers, raw m a t e r i a l s and b e t t e r marketlng pmspectq a,o
g e n e r a l l y c o n s i d e r e d as na jo i f a c t o r s f o r t h e informal sector
to3 s e t UP t h e i r footwear u n i t s . The informal sector fontwrnr
,,,,its surveyed i n a l l t h e t h r e e c e n t r e s n o t o n l y c o n f i n e t o t h e i r
own f o o t w e a r p r o d u c t i o n a o t i v l t y b u t a l s o undertake sub-
c o n t r a c t s / j o b work f rom b l g workshops, l e a d i n g w h o l e s a l e
d e s l e r s / t r a d e r s , Government agenoies and a l s o from t h e f o m a l
s e c t o r u n i t s .
The a s s u r e d marketing support and sometimes a s s i s t a n c e
i n raw m a t e r i a l s u ~ p l i e s provided by t h e Government a g e n c i e s like
charmalaya i n Athani . B.C.S. i n Agra and TALC0 i n Madras t o t h e
informal s e c t o r footwear u n i t s have e s t a b l i s h e d s t r o n g l i n k a g e
~ i t h t h e i n s t i t u t i o n a l s u p p o r t . I t has been found t h a t as long
as t h e i n f o r m a l s e c t o r u n i t s produoe footwear i n accordance with
the q u a l i t y s p e c i f i c a t i o n s insisted by t h e marketing a g e n c i e s ,
they c o u l d g e t r e l i a b l e and cant lnuous orders and vioe-versa . The
footwear made i n ~ n f o r m a l s e c t o r u n i t s i n a l l t h e t h r e e c e n t r e s
are most o f t e n branded as t h e products of leading t r a d e r s . This
system i n t h e l o n g run works a g a i n s t t h e i n t e r e s t of t h e
informal u n i t s .
The major ~ r a b l e n s i n procurement aE raw m n t e r l a l s hy
t h e i n f o r m a l s e c t o r f o o t w e a r u n i t s has been t h e i n a d c q u n t e
availability of quality raw m a t e r i a l s a t reasonable p r i c e s , h i g h
t r a n s p o r t c o s t s and under-measurement of l e a t h e r s .
he footwear " " i t s of t h e lnfarmal s e c t o r i n a l l t h e
three c e n t r e s of t h e s tudy are f a m i l r a r wi th t h e use o f w e - o l d
traditional a n d I n d l g e n o u s l y available l o c a l in + , , P i r
P r o c e s s . However, developments t i l l s are
taklnq p l a c e towards t h e use of improved tools Eurh a s edge
deslgnlng, c h i m t a , impraved punohilig s e t s , shoe l a s t r and screen
p r i n t i n g t o o l s . The a r t i s a n s have r e a l l s e d t h e advantage
these improved t o o l s a s they a r e easy t o handle , reduces t h e
drudgery, enhances p r o d u c t i v i t y and q u a l i t y and f a c i l i t a t e s i n
achieving p e r f e c t f i t t i n g i n accordance with f o o t
1 .16 CONCLUBION
The emerging t r e n d of r e s o r t l n q t o t h e use of improved
t o o l s , p r o d u c t i o n t e c h n i q u e s and m a c h ~ n e s i n t h e h o u s e h o l d
workshops o f t h e l n f o r m a l s e c t o r u n l t s i n g e n e r a l and more
i n Agra amply d e m o n s t r a t e s t h e t e c h n o l o g i c a l
t r a n s f o r m a t i o n I" t h e footwear u n i t s . Thus, t h e ~ n f o r r n a l s e c t o r
of t h e footwear l n d u s t r y i n c e n t r e s l i k e Agra i s on t h e t h r e s h o l d
oI t h e technological change and vwaltlng t ransformat ion which
"111 have f a r r e a c h l n g e f l e c t s an t h e informal sector Most of
the household unlts and workshops I" t h e t h r e e c e n t r e s have
in t roduced new d e s r g n s ~n accordance wlth t h e market c o n d i t i o n s
and f n s h i a n changes . ~ a r i n s t a n c e , i n t h e inIormal u n i t s o f h g l ~
centre , t h e o l d and heavy t y p e s of oxford, Derby and Ambassador
shoes were replaced by t h e l l q h t Moccasln, I n q u i l a b , Nan-leather
cola and L a d i e s Bellarinas.
w i t h regard to t h e use of raw m a t e r i a l s , t h e informal
sector u n l t s ~n ~ g r a have replaced l e a t h e r s a l e s by using MCR,
PVC, PU and ~ r i ~ t o c r a t s o l e s . The age old t r a d i t i o n a l methods o f
hand s t i t c h i n g of soles has been disappear ing both i n Agra and
Madras and i n I t s p l a c e p a s t i n g of s o l e s by adhesives has bean
i n t r o d u c e d . T h i s d e v e l o p m e n t h a s r e s u l t e d I" i n c r e a s i n g t h e
p r o d u c t i ~ i t ~ , r e d u o i n 9 t h e drudgery and In providing employment
to t h e women w o r k e r s .
The r a p i d s h i f t s i n t h e product ion l e a t h e r footwear
to mixed l e a t h e r footwear i n Madras c e n t r e has a l s o r e s u l t e d i n
the o p e r a t i o n of several f a c t o r s such as c o s t e f f e c t i v e n e s s ,
employment t o women and h i g h demand fram mlddle and low income
groups.
On a c c o u n t o f t l ie l a t e s t developments t h a t are taki l iq
place i n t e r m s of use o f q u a l i t y raw rnoter la ls , changer it!
p r o d u c t i o n p r o c e s s , use o f improved t o o l s , t e c h n i q u e s anr l
indigenous rnachlnes coupled wlth the s k i l l e d workmanship, t h e
xolhapuri f o o t w e a r produced ln Athnni end t h e shoes made i n Agrn
i n t h e i n f o r m a l s e c t o r unlts a l g a f l n d t h ~ l r way t o t h e e x p o r t
market a p a r t fram c a t e r i n g t o t h e needs of t h e domest ic market.
Although t h e e n t r e p r e n e u r s a re not d i r e c t l y involved m t r a d i n g ,
the merchant e x p o r t e r s and t h e leading wholesale t r a d e r s are
playing a v r t a l role I n promoting t h e footwear made i n t h e
informal s e c t o r .
![[XLS] DIV FOR THE YR 2015-2016... · Web view3 RD FLOOR, 41, THIRUPALLI STREET,MADRAS,MADRAS, FOLIONOLR27247 MANOHARI 32, THANDEV RAIN STREET, NEW,MULLAH SHAI STREET, 1ST FLOOR MADRAS,MADRAS,](https://static.fdocuments.us/doc/165x107/5ae9d3e87f8b9ab24d8c9031/xls-div-for-the-yr-2015-2016web-view3-rd-floor-41-thirupalli-streetmadrasmadras.jpg)
