A Study on

ROLE OF HANDICRAFT ASSOCIATION ON

EXPORT PROMOTION OF THANKA

By

BHAIRAB PD. PANDEY

T.U. Registration number: 7-1-246-5-2004

College Roll No: 174/063

Exam Roll No : 310796

A Field Work Report

Submitted to

Public youth Campus

Paknajol, Kathmandu

In partial fulfillment of the requirements for the degree of

Bachelor of Business Studies

August 204

Faculty of Management Tribhuvan University Public Youth Campus

Recommendation

This is certify that the field work assignment report: Submitted by:

BHAIRAB PD. PANDEY

Entitled

Role of Handicraft Association on Export Promotion ofThanka

Has been prepared as approved as by this departmentThis fieldwork assignment report is forwarded for examination

Date:-. Supervisor

Head of DepartmentPublic Youth Campus

ACKNOWLEDGEMENT

This field work report has been prepared under Small Business as partial fulfill requirement of Bachelor of Business Studies (BBS) programs of faculty of management T.U. I hope this study will help those who wish to study about Hand Made Paper Product in the future.

A detailed list of authors, books & other sources which were used as fundamental sources in course of preparation of this report has been included in Bibliography which will be useful to those enthusiastic to enter the source.

I would heartily like to thanks to our Lecturers of Public Youth Campus(Campus Coordinator), and all other respected lecturers of the college.I am also grateful to the staff of Handicraft Association of Nepal, especially towards manager for their efforts to conduct this study by providing necessary data.

Lastly, I would like to extend sincere gratitude to the known and unknown writer of the books and references that has been taken during the preparation of this field report. Also my thanks goes to all of my friends for their regular motivation, support and help to make this report possible.

BHAIRAB PD. PANDEY Public Youth Campus

Contents

Page No.To Whom It May Concern ii Recommendation iii Acknowledgement iv List of Table & Figures vList of Abbreviation Used vi

Chapter I 1-12

1.1Background of the Study1

1.1.1 Handicraft2

1.1.2 Introduction to Handicraft Association on Nepal3

1.1.3 Export Procedure of Handicraft5

1.1.4 Introduction of Thanka6

1.1.5 Organization Structure of Handicraft Associaition81.2Statement of the problem91.3Objective of The Study91.4Significance of the Study101.3Research Methodology101.5Research Methodology10

1.5.1 Research Design10

1.5.2 Nature and Sources of Data11

1.5.3 Data Collection Technique11

1.5.4 Data analysis tools121.6Limitation of the Study12

Chapter II DATA PRESENTATION AND ANALYSIS 13-21

2.1 Relationship of Thanka export with total export of handicraft 132.2 Tendency of Thanka export 172.3 Country wise Export of Thanka 19

Chapter III SUMMARY, CONCLUSION & RECOMM. 22-26

3.1 Summary223.2 Conclusion243.3 RecommendationBibliography25

List of Tables and Figures

List of Tables 6-25

Table No. Title of Table

Page No

1Total Handicraft Export and Export of Thanka132Calculation of Coorelation Coefficient163Estimation of Trend line by least square method184Country wise Export of Thanka20

List of Figures 14-26

1Bar Diagram Showing Total Handicraft Export142Bar Diagram Showing Thanka Export143Trend of Thanka Export194Country Wise Wise Export of Thanka20

List of Abberviations Used

BBS : Bachelor of business study

C.V. : Coefficient of Variation

FY : Fiscal Year

HAN : Handicraft Association of Nepal

USA : United State of America

URL : Universal Resource Locator

CHAPTER-I INTRODUCTION

1.1 Background Of The Study

Due to the rapid development in the field of science and technology, the economy of the any nation is highly affected. Due to the globalization, the organizations are getting borderless and the world has become very small. No nation can remain isolated from one another due to the digital revelation in technology. International trade had flourished worldwide. In fact it has become a part of economic activities in all nations.

Now a day the International trade is regarded as a key factor to measure the economic growth of a nation. Any country needs foreign currency of its economic prosperity. Both developed & underdeveloped countries can gain much more benefits from foreign trade. It can be very good source for earning foreign exchange. So, the developing countries like Nepal has no such satisfactory industrial products to export. But some distinct products which it produces the best and has high demand and export phisibility in the international market. One of the most common product having good export phisibility is handicraft. So the study of this product regarding export and its promotion is being essential.

1.1.1 Handicraft

Generally, a producer solely made by human hands without using any kinds of complicated machinery and equipment is called handicraft. A simple dictionary meaning of handicraft is an art or craft needing skill with the hands. It is the practice of making decorative of functional objects, wholly or partly by hand, an requiring both manual and artistic skillAccording to Encyclopedia Britannica; Handicraft is the occupation of making by hands usable products graced with visual appeal. Handicraft includes such activities as needlework, lace-making, weaving, printed textile decoration, basketry, pottery, ornamental, metal working, jeweler, leather working and wood working and such crafts as glass blowing and the making of stain glass that requires complex facilitiesTherefore, we can say that handicrafts is an occupation that involves making usable or decorative products by hand. For e.g. Origami (Japanese for paper folding). Developed in Japan, Origami is the art of making/creating different kinds of objects by folding a sheet of paper. They created forms range from simple figures to complex designs complete with handicraft enjoyed worldwide. It has been popular especially as an art from and hobby in Spain and Latin America.

Handicraft have been a valuable part of Nepalese heritage. They express the great tradition and proud culture of this great Himalayan Kingdom. Their origin can be traced back to the Stone Age when human beings were devoid of tools of any king. The history of articles of everyday use

may be as old as the history of man living in Nepal itself. But the history ofartistic handicrafts probably can be traced only since the 5th century A.D. When one looks back to the Nepalese handicrafts design, materials, tools,craftsmanship and product development he/she finds them as old as the human civilization.

1.1.2 Introduction to Handicraft Association of Nepal

Handicraft Association of Nepal was established on 1971 to enhance and promote handicraft trade and industry. It was registered under Institutional Registration Act of Nepal. As a service oriented, non-profitable organization of private sector business and artisan community, it helps its members to improve their productivity, explore markets and introduce them to the international arena. It also works as a liaison between the members and the Government / Non-Government organization. The Association has more than 1400 members and three branches within Nepal. Today HAN has its own web site for the seekers of information about handicraft.

Aims & Objectives of Handicraft Association of Nepal

Broadly, Associations aims and objectives are as follows,

To work towards steady growth of handicraft trade industry.

To encourage Nepalese artisans to adopt handicraft promotion s their profession by reserving Nepalese Cultural Heritage and to popularize it in the world.

To Provide pragmatic suggestion and advice to His Majestys Government and its related agencies to formulate policy/programs for the betterment of Handicraft Trade & Industry. To popularize and promote handicraft products. To strive towards enhancing the quality of handicraft goods and its productivity.

ActivitiesTo attain its aim and objectives, the Association has been undertaking the

following activities.

Organize seminars, symposiums and conferences on various topics relevant to strengthening of the handicraft trade and industry. Explore additional markets for the handicraft products.

Organize Exhibition and Trade Fairs to highlight handicraft products and create public awareness in its usage. Activate and increase contacts with national and international

Agencies for the growth of handicraft trade and industry.

Institute award in recognition of highest Export and best craftsmanship. Arrange participation in international trade fairs and organize exhibition for its members. Publication of news bulletins, books, catalogues, directory and the materials relevant to handicraft trade and industry. Act as catalytic agent for management of training program for the benefit of its members.

Issuance of valuation certificates for handicraft and silver products.

Certification of products made from the parts of domestic animals. Documentation & Dissemination of information regarding handicraft trade industry.

1.1.3 Export Procedure of Handicraft

1. An export should have:

a. Registration of Firm/ Company/ Industry b. Registration in Local tax officec. Current account in commercial bank

II. An export order could be affected

a. If a letter of credit is opened on the exporters name, or

b. Advance payment is deposited, in convertible currency, in the

exporters bank account, or

c. Samples, up to the value of US $ 150 could be exported without the condition stated in II. a and b

III. Documents required for Export

a. Commercial invoice certificate by Handicraft Association of Nepal. b. Packing list.c. Certificate of origin.

d. Nepal Rastra Bank Declaration form.

e. Certificate from Handicraft Association of Nepal.

f. Advance Payment or Letter of Credit. g. Authorized letterh. A copy of Firm registration/Income tax registration i. A copy of customs agent registration.j. Museum pass certificate.

k. G.S. (Generalized System of Preference) form A.

l. No objection letter from Handicraft Association of Nepal.

m.Recommendation letter from Depart of Forestry for forest based products.n.Recommendation letter from Department of Mines for some mineral products.

1.1.4 Introduction of Thanka

The most popular paintings on canvas (coarse cotton) and on thick paper are often called thankas or pauvas based on the Tibetan influence are mostly introduced by the Tibetan refugees settled in Nepal and by the Sherpas and tamang tribes of the northern regions. Amongst a sect in northern Nepal, as in Tibet, the second son in every household be sent to a gumba (monastery), where he is trained to be a lama. Fine arts are one of the subjects for those students, who gradually turn into masters. This tradition is the chief reason for the profusion of paintings, (mainly on especially prepared and smoked cloth, but also on various other surfaces) that fill up all the gumbas in lama lands. This tradition is embued to the present generation as well, that these thankas based on traditional symbols, forms styles, and color arrangements and are carried out in gouache. Some for the artistic religious and historical paintings are also done by the Newars of Kathmandu Valley.

Varietis of the Buddhists and Hindu deities, secret philosophes and illustrative scenes full of narratives are painted by traditional methods. Mostly such paintings contain horror provoking images, the wheel of life, images of different gods and goddesses, illustrations of stories, various shaktis (erotic figures), imaginary representations of the great thinkers, etc. some of these paintings were originally made to fulfill certain purposes, such as (a) to serve as a guide out of chaos of the unconscious and the entanglements of the world. (b) As a support of concentration, meditation and ritual aids on the way towards the centre of the consmos and self and(c) as a magical instruments were merely looking at a painting the faithful might achieve what is desired.

While painting on coarse cotton of the ground with a mixture of chalk and glue, the colour, being likewise mixed with glue, become one with the ground. The finished painting is varnished with glue, become one ducks egg mixed with water. Thanka is specially prepared on cloth of paper or left bright subdued by some treatment are competitive to those in any other country. The artistic and decorative oriental value of these exotic works of art can blend tastefully and can be conversation piece in any modern drawing room.

1.1.5 Organization Structure of Handicraft Association of Nepal

Federation of Handicraft Association of NepalOrganization Chart

General Addembly Of members

Executive Board

Precident

IP Precident

1st Vice Precident

2nd Vice Precident

General Secretary

Executive members 16

Secreatariat(20)Officers(7)Sr. Assiastants(4)Asst.(2)Jr.Asst(1)Messengers(6)

Functional Committees 8

Product Development Committees 12

1.2 Statement of The Problem

For the economic growth of a country like Nepal, there is a great role of handicraft goods. Nepal is a country with rich cultural and traditional value. There is a reflection of old age tradition and rich Nepalese culture in Nepalese handicraft. So we can earn foreign currency by export promotion of handicraft goods. In Nepal Handicraft association is established to promote production and export of handicraft goods. Thanak is one of the exportable handicraft product. So in this project work the answer of the following research question is tried to find.

(I) What is the tendency of thanka export?

(II) What is the relation between total handicraft export and Thanka

Export?

(III) Which country is in the top priority regarding export of thanka?

1.2 Objective Of the Study

Following are the objectives of the Study

(I)To examine the relationship of thanka export with total export of handicraft(II) To observer the trend of thanka export

(III) To analyze the country wise export of thanka.

1.3 Significance of the Study

This study is carried out to fulfill the requirement of BBS 3rd year. So this is significant for me to fulfill the requirement of BBS 3rd year. Also the detailed methodology applied to carry out this research is described in this and all the name of the writer and their publication are included in the bibliography. So this project wor will be helpful to those who want to carryout the study regarding the product of handicraft association in the future.

1.4 Research Methodology

Thanka, being one of the important exportable handicraft goods, should be studied extensively for its export promotion. The main objective of this report is to carry out comparative study regarding total Handicraft export condition and Total thanka export condition of Nepal. Also to fine the trend of thanka export is another objective of the study. For this the detailed methodology adopted is discussed under the following headings. Research design, nature and sources of data collection techniques and data analysis tools.

1.5.1 Research Design

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is the

plan, structure and strategy of customer service conceived so as to obtain answers to research questions. Descriptive and analytical research design for the study has been applied as it gets two aspects. At first, it has the description of the situation and secondly, it has the interpretation of data.

1.5.2 Nature and Sources of Data

This study is conducted on the basis secondary data only. The data related to the study are collected from the following sources:1. Annual reports of Handicraft Association Nepal,

2. Various booklets and journal concerned with foreign trade, Handicraft Association of Nepal and Thanka.3. From the official URL of Handicraft Association of Nepal:

www.nepalhandicraft.com

4. From the site of Thanka: www.yomari.com.np

1.5.3 Date Collection Technique

The information regarding to this study are mainly collected from the office of Handicraft Association of Nepal from the published annual reports relating to the Export of different Handicrafts items. Also the Internet is used to find some literature and other necessary data regarding this study. A prospectus published by HAN is much more useful to collect the data regarding Introduction, Aim and Objectives, Promotion function. Also other books regarding foreign trade are also studied to collect the data regarding this Study.

1.5.4 Data Analysis Tools

Presentation of Data: The collected data were presented with the help of

Simple bar diagrams. Multiple bar diagrams etc.

Statistical tools used: The analysis tools used in this study are Mean, Standard deviation, Trend analysis, Coefficient of Correlation analysis and Coefficient of Variation analysis.

1.5 Limitation of the Study

1. This study is mainly carried out to attain the partial fulfillment of

BBS III year, which is also a limitation of the study.

2. The study is only focused on Export of Thanka and necessary data is collected from only published source provided by Handicraft Association of Nepal.3. The study includes only five years data from FY 2060/61 to FY

2064/2065

4. Only top 5 export countries are selected to carryout study about country wise export of Thankas.5. The study has time and economy bond.

CHAPTER-II

DATA PRESENTATION AND ANALYSIS

2.1 Relationship of thanka export with total export of handicraft

Data Presentation

Table 1 shows the figure relating to total handicraft and thanka export for the five years form FY 2060/061 TO 2064/065

Table No 1Total Handicraft Export and Export of thanka

FYTotal Handicraft ExportTotal Thanka Export2060/612719636490175435292061/622552952543157619352062/632571841423150025572063/642849476340210091082064/65288064484815411112Sources: Handicraft Association Nepal.

The data relating to the total Handicraft export is presented in the following multiple bar diagram

30002900280027002600250024002300 Figure No.1Bar Diagram Showing Total Handicraft Export

Total Handicraft Export

Total Handicraft Export

2060/061 2061/062 2062/063 2063/064 2064/065

Source: Table No.1

The data relating to the total Handicraft export is presented in the following multiple bar diagram

2500 Figure No.2Bar Diagram Showing Thanka Export

Total Thanka Export

2000

1500

1000

Total Thanka Export

500

02060/061 2061/062 2062/063 2063/064 2064/065

Source: Table No. 1

According to the above table and figure the export of total handicraft and thanka in the year 2060/61 is Rs. 2719636490 and Rs 1,75,432 respectively. Similarly the export figure of total handicraft in the year 2061/062, 2062/63,2063/64 and 2064/65 is Rs. 2552952543, Rs. 2571841423, Rs. 2849476340 and Rs. 2880644848 respectively and that of thanka in the same year is Rs.15761935, Rs. 15002557, Rs 2, 10, 09,108 and Rs. 15411112 respectively.

Data Analysis

Properties:

1. Correlation coefficient is denoted by r and lies between -1 and +1

2. When r=1, there is perfectly positive correlation between the two variables3. When r=-1, there is perfectly negative correlation between the two variables.4. When r=0, there is no correlation between the variables.

If the value of r is near to +1 or -1 the relationship between two variables are closer and nearer the value of r to 0, lesser will be the relationship.FYHandicraft ExportThanka ExportX=X-xY=Y-yX2 Y2

(X)(Y)

20602719.6364917.5435294.72616120.59788122.340.3574614

Table No. 2

2061 2552.952543 15.761935 -161.9577858 -1.18371 26230.32 1.401176

2062 2571.841423 15.002557 -143.0689058 -1.94309 20468.71 3.7756034

2063 2849.47634 21.009108 134.5660112 4.06346 18108.01 16.511705

2064 2880.644848 15.411112 165.7345192 -1.53454 27467.93 2.3548013

= 16574.55164 = 84.728241 = 92297.32 = 24.40074

Calculation of Correlation Coefficient

SOURCE: Table No. 1

Here = = = 2714.910328; e = = =

16.9456482

Now, r =

=

=

= = 0.50

Hence the coefficient of correlation r=0.50

From the computation of coefficient or correlation between thanka export and total handicraft export is r = 0.50 which shows positive moderate correlation between the total handicraft export and thanka export.

2.2 Tendency of Thanka export

If the rate of change of export is positive, the trend of the thanka export will be in rising trend and it will be failing trend if the change of export is negative.

Table No. 3

Estimation of Trend Line by Least Square MethodYear (X)Thana Export (y)X=X-2061X2Xyyc2060/6117543529-24-3508705816749180.42061/6215761935-11-1576193516847414.32062/631500255700016945648.22063/6421009108112100910817043882.12064/6515411112243082222417142116

0

Source: Table No.1

Let, n=5=No. of years

2061 = middle of the year

yc = computed value of y or trend value a = average of loanb = rate of change We have yc = a+bx Since ,a =

b =

Hence, for year 60, yc = a +bx = 16945648.2+ -196467.8 = 16749180.4 for year 60, yc = a +bx = 16945648.2+ -98233.9 = 16847414.3 for year 60, yc = a +bx = 16945648.2+ 0 = 16945648.2 for year 60, yc = a +bx = 16945648.2+ 98233.9 = 17043882.1 for year 60, yc = a +bx = 16945648.2+ 196467.8= 17142116

Since the rate of change (b) is positive, the tred value will show a rising trend. Also with the help of yc calculated above we can build the graph of trend line as shown in the figure 3 below

Figure No. 3Trend Of Thanka Export

25000000 Trendlineof Thanka Export

20000000

15000000

10000000

5000000 Trend line of Thanka

Export

060/061 61/062 62/063 63/064 64/065

Source: Table No. 3

According to the above figure No. 3 it is clear that the trend of thanka export is in rising trend.

2.3 Countrywise Export of Thanka

The following table shows the figure relating to country wise export of

Thanak to thetop major 5 countries for the five years starting from FY

2059/2060 to 2063/2064

Table No. 4Countrywise Export of Thanka

Rs. 000

FYUSAGERMANYJAPANINDIAFRANCE060/616390.2672175.43997.113957.676391.141061/626146.0961178.463706.564946.785252.883062/635184.3451477.297609.281414.103350.226063/645659.6622422.8342035.5911419.075774.33064/654764.51825.197990.3431430.077957.419Source: Handicraft Association Nepal.

The above data are also presented in the following figure.

Figure No. 4

Country Wise Export of Thanka

7000

6000

5000

4000

3000

2000 USA GERMANY JAPAN INDIAFRANCE

1000

060/61 61/62 62/63 63/64 64/65

Source: Table No. 4

According to the above table and figure the export of thankas in USA fromFY 2065/60 to FY 2063/64 is Rs. 6390.267, 6146.096, 5148.345

5659.662 and 4764.5 thousands respectively. Similarly the export figure of Germany if Rs. 2175.43, 1178.463, 1477.297, 2422.834 and 1825.197 is Rs. 997.113, 946.785, 1414.103, 1419.075 and 1430. 077 thousands respectively and that in the India compraises of Rs. 957.676, 946.785,1414.103, 1419.075 and 1430.077 thousands respectively. At las the export figure for the same period for France includes Rs. 391.141, 252.883,3 5 0 . 2 2 6 , 7 7 4 . 3 3 a n d 9 5 7 . 4 1 9 r e s p e c t i v e l y .

Export country in top priority according to variability

Properties:

Less the C.V. the data will be more uniform and that will be less uniform if C.V is more i.e. The Country having moir uniformity in thanka export is in the top priority for export and other hold succeeding priority.

CHAPTER-III

SUMMARY, CONCLUSION & RECOMMENDATION

3.1 SUMMARY

Handicraft have beena valuable part of Nepalese heritage. They express the great tradition and proud culture of this great Himalayan Kingdom. The history of articles of everyday use may be as old as the history of man living in Nepal I itself. But the history of artistic hadicrafts probably can be traced only since the 5th century A.D. When one looks back to the Nepalese handicrafts design, materials, tools, craftsmanship and product development he/she finds them as old as the human civilization.

In Nepal the production, promotion and export of Handicraft is found to be facilitated by an organization called Handicraft Association which was established on 1971 to enhance and promote handicraft trade and industry. It was registered under Institutional Registration Act of Nepal. As a service oriented, non-profitable organization of private sector business and artisan community, it helps its members to improve their productivity, expolore markets and introduce them to the international arena. It also works as a liaison between the members and the Government / Non-Government organization. The Association has moir than 1400 members and three branches within Nepal. Today HAN has its own web site for the seekers of information about handicraft.Thanka, one of the Handicraft products is the most popular paintings on canvas (coarse cotton)and on thick paper based on the Tibetan influence

Is mostly introduced by the Tibetan refugees settled in Nepal and by the Sherpas and Tamang tribes of the northern regions. This tradition is the chief reason for the profusion of paintings, (mainly on especially prepared and smoked cloth, but also on various other surfaces) that fill up all the gumbas in lama lands. Some for the artistic religious and historical paintings are also done by the Newars of Kathmandu valley. In this painting varieties of the Buddhists and Hindu deities, secret philosophies and illustrative scenes full of narratives are painted by traditional methods. Mostly such paintings contain horror provoking images, the wheel of life, images of different gods and goddesses, illustrations of stories, various shaktis (erotic figures), imaginary representations of the great thinkers, etc.

In this study the data concerned with Total Handicraft export and Thanka export is presented. All the data presented relates from FY 2058/059 to FY2063/64. The data are presented by means of Tabulation and also plotted in various types of diagram to make the data presented in cardinal number clear.The data has been presented to analyze the objectives of examining the trend of Thanka export, analyzing the relationship between Total Handicraft export and Thanka Export, ascertaining different export countries on priority basis.The trend analysis of data is brought through least square method. While studying the trend it was found that the average export of thanka for the past5 years was Rs. 16945648.2 and the value of b is found to be

98233.9. Since the value of b is positive the trend of Thanka export is in rising trend.The analysis of coefficient of correlation between Total Handicraft export and Thanka Export found that these two sectors have moderate degree of positive correlation since the value of r calculated was 0.50.

The analysis of coefficient of variation of export between different five countries helped to know ascertain the export countries on the priority basis. On he priority basis the USA is in top priority regarding uniformity on the Export as its CV is found to be smallest i.e. 10.63 where as the C.V. of Export for India, Germany, Japan & France is 20.15, 24.85, 47.54 and 49.87 respectively. Similarly the standard deviation of export for the export countries USA, India, Germany, Japan and France is found to be 598.82,248.60, 451.37, 507.61 and 271.81 respectively and mean of export for the

USA, Germany, India, Japan and France be 5628.98, 1815.848, 1233.55,

1067.78, 545.20 respectively.

3.2 Conclusion

From the analysis it is known that the export of Thanak is in rising trend. It is also known that the total Export of Handicraft and Thanka export have moderate degree of positive correlation. Bye the Study of C.V of different countries concerned with Thanka export it was found that the USA is in the high priority for the export procedure as it has lowest C.V. Similarly the

other countries on the priority basis of export are India, Germany, Japan and

France.

3.3 Recommendation

Based on the findings of the study the following recommendation is formulated.

Quality control is one of the great problems in Nepalese exportable goods. Due to the lack of quality checking system quality less product may be exported which may reduces export in the future. So the effort should be taken by the side of government to establish quality checking department for exportable thanka.

Due to the chief kasmiri product there is high competition in export, which may reduces the export of thanka in the future. So government should be careful to get the patent rights of the Nepalese thanka.

The association should give proper training for its member to produce quality product. Also the member of the association should be careful to maintain the quality of their product.

The association should take its effort to search new export countries and modern means of export by using recent net services.

Bibliography

Agrawal, G.R, Project Management in Nepal, M.K. Publishers andDistributors, Kathmandu.

Annual Report of Handicraft Association of Nepal From FY 64/65 to2065/66

Bajracharya, B.C., Business statistics & mathematics, M.K publishers andDistributors, Bhotahity, Kathmandu, Edition 2057

Brocer published by Handicraft Associaton of Nepal, 2007

URL: www.nepalhandicrafts.org

URL: www.yamori.com