The approach we tend to take is cluster supply chain, in Rajasthan to formalize the way

artisans work, and we can regulate quality.

Backward linkages:

Raw material suppliers, machinery suppliers, and accessories suppliers. Rajasthan has a lot of
leather clusters, Khinchan and Jalore are prominent amongst them. Goat skin is available
readily from these areas and also from Gujarat, Kuchch Region.

Costing and Price:

The skin cost ranges from 200-250 Rs (Contacted local manufacturer through India Mart).
Approx. 2-3 skins for a bag and 1 for a small wallet costing around 500-900 Rs. An artisan based
on his/her work mostly makes around 2-3 bags per day. They earn around 10000-15000 Rs per
month. The price ranges from 600-4000 for the retailers. Premium bags can command price as
high as 10000 Rs.

Financing:

The Banks are readily available to help these artisans along with the funds from SIF. Co-
operative Banks and others banks are helping the artisans so that they can get funds. Take help
of government schemes like AHVY (Ambedkar Hastashilp Vikas Yojana (AHVY)). For this
purpose, we should register the company under section 25 of company act 2013. CSR can be
used to train the artisans so that they can have the finesse in the product, a similar model has
been employed in Jharcraft which is very successful in this domain.

The designers can also be contacted as India’s top designers are interested in rural handicraft
with their design been designed by poor artisans. As, responsible and social marketing for their
products is a win-win for both.

Forward linkages:

The leather market for products in India and abroad both are strong. Retailers in Jaipur,
Jodhpur and Delhi are prominent buyers of leather products manufacturer. Amazon as an
online retailer is a great platform for both domestic sales and exports. For export we can use
fulfillment by Amazon.
Typical cluster supply chain for leather industry:

Commercial Service Providers

Backward Linkages Forward Linkages

Designers

Financiers

Import Export Agents

Cluster of artisans Retailers – Brick and

Raw Material Suppliers Mortar and Online

Machinery Suppliers Industries

Accessories Suppliers Development Partners Distributors

Other Suppliers Universities Exporters

Training Centers

Government

CSR from companies

Self-help groups, NGOs

Support and service institutions

Social Impact Assessment and Other suggestions:

The typical cluster artisan earns around 4000-15000 Rs. Jharcraft, Rang sutra are examples
where this model has worked and changed lives of artisans. Moreover similar to other crafts
here women and men work together, so these initiatives also encourage women empowerment.
We can use a given percentage of sold bags in improving the school facilities. Moreover on our
own website people could be voluntarily asked to buy the product at premium rate of his own
choice, which will be completely used for community transformation. (Paytm uses a similar
strategy). So we can measure social impact by the amount of increase in the wages of artisans.
The number of children affected through improvement in school facilities. Number of women
employed as a women empowerment initiative and overall employment generated.

Also, we can make the artisans apart of company as in a co-operative, this not only makes them
a stakeholder in success, but also makes us eligible for a lot of government schemes like Dastkar
Shashktikaran Yojana (Community empowerment for mobilization of artisans into self-help
groups (SHGs) /Societies). (Rangasutra used the same approach). Crowd funding is also valid
option, with crowdfunding, they will be able to reach out to a wider, more international
demographic, and in turn, bring in more income to help the villagers. Social entrepreneurs are
helped by 20000 Rs under NHDP to hire designers. Master crafts person (state shilp award
winner) can avail the training benefits under NHDP, which they can impart to others using self-
help groups.