Exhibit 4.2 - SIPPOC 1.

The Whole Process of Paithani Manufacturing

C1 C2

Performe
Supplier Input Process Output Customer
r

Silk Silk yarn Sorting of Silk

Traders of of warp / in warp / weft Weaver Silk
Yeola / weft bundles Dyer
bundles
Bangaluru
Zari
Jari Zari winding for Dyer
Traders or warp / weft Dyed Silk
Yeola / Chemical bundles
dyes Worker's Weaver
Surat
family
Dyeing member 2 / 3 ply
Dyers of Dyed Silk s
Yeola silk
bundles threads /
Silk winding for Loom
warp / weft bobbins Paithani
2 ply / 3 workers Trader
Weaver's of weft
ply silk of Yeola
family Loom
threads / / Paithan warped
members Preparation -
bobbins Warping loom
Loom of weft End
workers Weaver Paithani Custome
of Yeola / Warped r
Weaving Saree
Paithan loom

Customer Specifications – As per modern way, the customer specifications are added at the
SIPOC. We have added the customer specifications at the following SIPOCs of single
process of manufacturing of Paithani.

Controls – The arrows before and after the Process (C 1 and C 2) are of controls established
pre and post the Process. The controls are also discussed in details in the following SIPOCS
of single processes of manufacturing of Paithani.
Exhibit 4.3 - SIPOC 2. The Process of Silk Dyeing performed by the Dyer

C1 C2

Supplier Input Process Output Customer

Silk yarn of warp /

weft Degumming

Chemical dyes and Dyed Silk

Weavers other Chemicals bundles of
of Yeola / Dyeing Weaver
Vessels / warp /
Paithan
Equpments weft

Hot water / Cold Drying

water

 Customer Specifications – Color combination of warp and weft for saree, border and
pallav
 Process –
o Degumming: The gum is removed from silk threads by submerging silk in the
hot water. This reduces the weight of silk bundle to 75% and assures the
quality of dyeing.
o Dyeing: The silk is submerged in the desired color dye for stipulated time.
o Drying: Proper Washing and Drying of silk assures the quality of silk dye and
saree too.
 Controls –
o C1- the silk yarn is weighed before dyeing.
o C2 – the silk yarn is weighed after dyeing. One kilogram of silk yarn weighs
0.75 Kg after degumming because of loss of gum from the silk. This works as
quality control of degumming process. Proper degumming gives better results
of shine and quality of dyeing of silk.
Exhibit 4.4 - SIPPOC 3. The Process of Preparation (Pre-Weaving activities) for Paithani
weaving

C1 C2

Custom
Supplier Input Process Performer Output
er

Sorting of Dyed 2 / 3
Zari Silk yarn ply silk
Jari for warp Family threads
Traders / weft mebers of
or Yeola Weavers
/ Surat Cones / Reels
of silk for
Dyed Silk warp
bundles Silk Weaver
winding Reels and
Bobbins of
Loom silk for weft
Cones / workers
Dyers of
Reels of of Yeola
Yeola
silk for Warping /Paithan Loom with
warp New warp

 Customer Specifications – Quantity Reels for weft and warp cones are prepared by
the color and design specified by the customer / weaver.
 Process –
o Sorting of Silk: Warp threads are separated from dyed silk yarn and given for
winding on ‘Asari’ or reeling machines and silk cones / reels are produced for
warp.
o Winding of Silk: Weft threads are separated from dyed silk yarn and winded
on cones and then on bobbins.
o Warping and Sizeing: Warping is manual fixing of the warp reels on the warp
frame ‘Tansaal’. New warp is joined to previous warp with gum.
 Controls –
o C1- Simple test of burning silk thread is conducted for quality assurance of
silk yarn. C2 - NA
Exhibit 4.5 - SIPPOC 4. The Process of Weaving of Paithani

C1 C2
Supplier Input Process Performer Output Customer

Zari reels Shedding

Weaver's
family Paithani
members Trader
Reels /
bobbins Paithani
Picking Weaver
of weft Saree
Loom
workers End
of Yeola / Warped Customer
Paithan loom Beating

 Customer Specifications – Interlocking weaving / Tapestry weaving is done manually

depending on the design specified by the customer.
 Process –
o Shedding: With each movement of paddles, shedding is made and shuttle is
crossed within the shed to continue weaving. Centre shed is used to weave the
body of saree and Bottom shade is used to weave butti of Paithani.
o Picking: The weft (Pick) is passed across the warp threads through the shed.
o Beating: Once the single weft silk thread is passed through the shed, the shed
is changed by pushing the newly woven weft back into fell using the reed.
 Controls –
o C1 - NA
o C2 – The design of motifs and butti
Exhibit 4.9 Value added, Processing Cost and Returns (Actual) in Rupees and % to Input cost
at various levels of Manufacturing
Silk & Jari Trader - Adds value in terms of convenience and availability of silk at local
market place of Yeola
Input cost - Output cost Returns - % returns
Rs 1500 - Rs 2000 Rs 500 - 33.33%

Pre Weaving 1 - Silk sorting, silk cleaning and Silk winding done by weaver's family
Input cost - Output cost Returns - % return
Rs 2000 - Rs 2000 Rs 0 - 0%

Dyeing - Dyeing of silk to give beautiful colors to Paithani, which is one of important USP
Input cost - Output cost Returns - % return
Rs 2000 - Rs 2100 Rs 100 - 5%

Pre weaving 2 - other sundry expenses like loom joining, transport, electricity, rent of place
etc
Input cost - Output cost Returns - % return
Rs 2100 - Rs 2200 Rs 100 - 5%

Weaving 1 - Weaving body of Paithani

Input cost - Output cost Returns - % return
Rs 2200 - Rs 2700 Rs 500 -23 %

Weaving 2 - Weaving single pallu of Paithani by master weaver

Input cost - Output cost Returns - % return
Rs 2700 - Rs 3200 Rs 500 - 19%

Weavers' enterprise profit - working and functioning of Paithani weaving unit and selling to
trader by master weaver
Input cost - Output cost Returns - % return
Rs 3200 - Rs 4000 Rs 800 - 25%

Trading - purchase from weaver, stock and sell to customer, marketing, advertising
Input cost - Output cost Returns - % return
Rs 4000 - Rs 6000 Rs 2000 - 50%
Exhibit 4.10 Value added, Processing Cost, actual Returns as well as Expected (by weavers)
at various levels of Manufacturing
Silk & Jari Trader - Convenience and availability of silk at local market place of Yeola
Actual Input Output Expected Input Output
Cost (Rs) 1500 2000 Cost (Rs) 1500 1700
Returns (%) 500 33.33% Returns/ (%) 200 13.33%

Pre Weaving 1 - Silk sorting, silk cleaning and Silk winding done by weaver's family
Actual Input Output Expected Input Output
Cost (Rs) 2000 2000 Cost (Rs) 1700 1850
Returns (%) 0 0% Returns/ (%) 150 9%

Dyeing - Dyeing of silk to give beautiful colors to Paithani, which is one of important USP
Actual Input Output Expected Input Output
Cost (Rs) 2000 2100 Cost (Rs) 1850 2050
Returns (%) 100 5% Returns/ (%) 200 11%

Pre weaving 2 - expenses like loom joining, transport, electricity, rent of place etc
Actual Input Output Expected Input Output
Cost (Rs) 2100 2200 Cost (Rs) 2050 2300
Returns (%) 100 5% Returns/ (%) 250 12%

Weaving 1 - Weaving body of Paithani

Actual Input Output Expected Input Output
Cost (Rs) 2200 2700 Cost (Rs) 2300 2800
Returns (%) 500 23% Returns/ (%) 500 22%

Weaving 2 - Weaving single pallav of Paithani by master weaver

Actual Input Output Expected Input Output
Cost (Rs) 2700 3200 Cost (Rs) 2800 3400
Returns (%) 500 19% Returns/ (%) 800 29%

Weavers' enterprise profit - working and functioning of Paithani weaving unit and selling
to trader by master weaver
Actual Input Output Expected Input Output
Cost (Rs) 3200 4000 Cost (Rs) 3400 4500
Returns (%) 800 25% Returns/ (%) 1100 32%

Trader - purchase from weaver, stock and sell to customer, marketing, advertising
Actual Input Output Expected Input Output
Cost (Rs) 4000 6000 Cost (Rs) 4500 6000
Returns (%) 2000 50% Returns/ (%) 1500 33.33%
Exhibit 4.15 Gandhi Road of Kanchipuram
Quality Assurance of Silk and Jari at Kanchipuram by Weaver’s Co-operatives

When we took a walk across Gandhi Road of Kanchipuram city, we come across all major silk
trading shops of Kanchipuram silk. Out of 34 ‘Authorised Users’ recently (in the year of 2009 &
2012) registered under Kanchipuram GI (application no 15), 24 are the weaver’s co-operatives
and 10 are private traders. Out of active 24-25 weavers co-operatives, 5 are the giants with more
than 1000 weavers. The giants are Murugan Silk Co-op, Arignar Anna Silk Co-op, Pallavar Silk
Co-op and few more. We can see the ‘Silk Mark’, ‘Handloom Mark’, and Co-op Society Marks
are used on products, on the packaging and even on the receipts. Customers are also provoked to
ask for Silk mark for the quality assurance of the silk. Jari testing certificate is mentioned in the
shop. The use of such marks is followed more strictly by weaver’s co-operatives than the private
traders. Handloom Co-operatives are not allowed to sell anything other than handloom.

Petni (joining) of Kancheepuram silk sari and Weaver’s Co-operative Logo

Display of Silk Mark, Handloom Mark, Co-operatives Mark on the Saree, Receipt and Packaging.

Source: Photos taken by the researcher at the market of Gandhi Road, Kanchipuram.
Exhibit 4.7 Trimurty Paithani Center, Paithan, Maharashtra.

The Maharashtra Small Scale Industries Development Corporation Ltd., popularly known as MSSIDC,
was established on October 19, 1962 with a view to give a new orientation and strength to the
development of Small Scale Industries in the State of Maharashtra. A Paithani Training and production
center was established at Paithan in 1968 with a view to promoting the weaving of the Paithani.
MSSIDC took over its management in 1973.

The activities conducted at Trimurty Paithani center are training of Paithani weaving to the new
weavers, Paithani production and sales of the self woven Paithanis at the center counter.

At present the number of looms at the center is 38 and about a hundred and fifty Paithanis, both
traditional and brocade are produced annually. All the fabrics produced at the center are marketed by
MSSIDC through its Marhati emporia at Mumbai and New Delhi.

MSSIDC is doing its best to improve the living and working conditions of the weavers, by making
available to them raw material and looms. Besides, if they wish to work at the looms in the shed of the
weavers’ complex they are allowed to do so. The new Paithani training scheme evolved by MSSIDC has
attracted the younger generation. The training period was for 16 months, a higher stipend was
offered, and the trainees were absorbed in the production programme on completion of training.

On 20th September 2011, Industries minister Narayan Rane had decided to promote the traditional
Paithani saree with its new name 'Marhati Paithani saree'. Paithani saree which has won worldwide
recognition as ancient handicraft has now been renamed by the Maharashtra government as 'Marhati
Paithani'. The State textile ministry has directed that the textile product associated with the ancient
Paithan town should be popularized and promoted at various exhibition centers with its new brand
name. The ‘Trimurty Paithani Center’ is renamed as ‘Marhati Paithani Center’.

The MSSIDC runs Paithani sales centers at Paithan, Mumbai and Delhi. These centers too have
been renamed as ‘Marhati Emporium’.

Source: http://www.sakaaltimes.com/NewsDetails, https://mssidc.maharashtra.gov.in/, field visit by

author.
Exhibit 4. 13 PGI (Protected GI) and other logos used in European Union

Source: http://ec.europa.eu/agriculture/quality/schemes/logos/index_en.htm
Exhibit 4.14 Case of Khadi Trademark by Germany
Trademark War: Government’s battle against Khadi Naturprodukte

After turmeric, basmati and neem, Government of India is preparing for trademark battle
against Germany’s company ‘Khadi Naturprodukte’. MSME Ministry has noticed that ‘khadi’ is
registered as trademark in Germany, Spain and Hungary. Government is taking this issue to
European authorities as IPR Infringement evidence as Khadi is being registered in Indian under
KVIC Act, 1956. In India there are around 90 trademarks which have been registered by several
entities which includes brands and labels such as 'Khadi', 'Khadi Gramodyog' and 'Khadi Bharat'.

The Khadi & Village Industries Commission (KVIC), an arm of the ministry of micro, small & medium
enterprises, has sought cancellation of the trademark given to the company by Belgium-
headquartered Office for Harmonization in Internal Markets, an organisation responsible for trademark
and design registration in EU. The Department of Industrial Policy and Promotion has urged KVIC to
register the khadi brand for its range of products in the US and the EU. The international trademark
system is governed by two treaties: the Madrid Agreement Concerning the International Registration of
Marks (1891) and the Madrid Protocol Relating to the Madrid Agreement Concerning the International
Registration of Marks (1989).

The department of industrial policy and promotion has suggested that KVIC should seek an international
trademark under the World Intellectual Property Organization's Madrid Protocol. But for that KVIC and
the government need to ensure that the brand is not registered elsewhere. The GI application of Khadi is
also pending at GI office.

Effective capture of potential IPRs of India within the country and abroad hence has become the need of
an hour.

Source:http://timesofindia.indiatimes.com/business/india-business/Trademark-war-Khadi-registered-in-Germany-
Spain/articleshow/45029601.cms
http://articles.economictimes.indiatimes.com/2014-11-04/news/55757826_1_trademark-battle-kvic-khadi-village
Exhibit 4.16 Case of Tamil Nadu Zari Limited, Kancheepuram

Tamil Nadu Zari Limited, Kancheepuram, an ISO 9002 company, is a Public Limited concern established
in 1971 by the Government of Tamil Nadu, under the Companies Act 1956 with the objectives to
produce and supply Zari to cooperative handloom weavers of the silk industry in the State and to
provide protection to the silk handloom weavers cooperative societies in the State engaged in the
weaving of silk by making available the required quality of zari at the reasonable rates to save them
from stiff competitions of the monopoly of the zari merchants in and outside of the State. The Institute
also carry out issue of certificates by testing zari by conducting three separate tests for silk, gold, silver
and copper contents in the zari.

Source: http://www.tn.gov.in/hhtk/dht/zari/zari-home.htm

Photos by researcher.
 Exhibit 4.17 Case of TANSILK, Kancheepuram

Tamil Nadu Co-operative Silk Producers Federation Ltd., Kancheepuram was registered on 17.4.1978 as
a State level Co-operative Society and it started functioning with effect from 9.9.1978.

Objectives :
The main object of the federation is to procure raw silk yarn and twisted silk and market the
same to its members like weavers co-operative Societies and other bulk consumers in the quasi-
government sector such Khadi and Village Industries Board and Sarvodaya Sanghs. The
federation is unique in its set up, in which both producers and consumers are members.

Activities of the Federation

TANSILK purchases raw silk of the silk reelers through the Anna Silk Exchange at Kancheepuram
and supplies to its twister members for further process of twisting. Such twisted silk (Ready silk)
is purchased from the twisters and supplied to the silk handloom weavers co-operative
societies, Khadi and Sarvodaya Sanghs according to their requirements. The Govt. of TamilNadu
have directed in G.O.Ms.No.174, Handlooms, Handicrafts, Textiles and Khadi Department dated
24.12.85 that all the silk handloom weavers co-operative societies in TamilNadu should
purchase their silk requirement only from TANSILK. TANSILK is also expected to buy all the silk
coming to the Anna Silk Exchange that is not bought by the regular buyers. Thus it provides
support to the reeling industry of the State.

Anna Silk Exchange, Kancheepuram

Development of Silk Reeling Industry was sluggish in Tamilnadu, since raw silk production and
trading was mainly concentrated in and around Bangalore. Further analysis revealed that
difficulty in marketing of raw silk was the main reason for this slow growth of silk reeling sector in
Tamilnadu. The major silk consuming centres like Arani, Kancheepuram, Kumbakonam and
Salem were drawing their silk through traditional customised trading channels from
Bangalore. In order to facilitate marketing of raw silk produced within the State, Anna Silk
Exchange was set up in Kancheepuram and it has been functioning there since 9.1.1991. The
reelers of Tamilnadu bring the silk produced by them to the Anna Silk Exchange for sale. All the
silk lots brought this way are first tested for quality at the Silk Conditioning and Testing House,
Kancheepuram (under the control of Central Silk Board). Then the floor price of each silk lot is
fixed based on the average silk price in Karnataka and the quality of the particular lot. Then the
silk lots are put up for auction. TANSILK, Silk Weavers Co-operative Societies, twisters and other
consumers participate in the auction. The exchange ensures spot payment to the reelers.

The operations of the Anna Silk Exchange has stabilised the silk reeling industry and has
encouraged more investment in the reeling industry by private entrepreneurs. This can be seen
by the increasing transactions in the cocoon markets. It has also eliminated middlemen such as
financiers and commission agents and has been able to establish a direct link between the
producers and the consumers of silk in Tamilnadu.

Source: http://www.tn.gov.in/hhtk/Sericulture/seri-tansilk.htm
Exhibit 4.18 Case study of ‘Bastralaya’ or ‘Sambalpuri Bastralaya Handloom Cooperative Society
Limited’ (SBHCSL)

Community enterprise ‘Sambalpuri Bastralaya’, a traditional knowledge intensive community

enterprise (CE) is one of the largest primary weavers’ cooperative society (PWCS) which works as
production cum sales society, operating in four districts of Orissa state, has 90 affiliated weavers’
societies, 5952 high skilled member weavers, 5345 looms in 43 weaving branches and 42 sales outlets
giving livelihood guarantee to many weavers from socio-economically backward class and women.

‘Bastralaya’ has recorded a turnover of INR 250 million in year 2010-2011.

It provides raw material to weaver members, pays scheduled fair conversion charges, collects finished
goods and markets through own sales outlets and commission agents. It has its own logistics van and
in-house dyeing unit called ‘Rang Ghar’. Bastralaya produces sarees, dhotis, lungis, bed covers and
dress material etc. Promotion is done by expos, fairs and exhibitions. Weavers elect Directors of the
managing board and Secretary is a paid employee.

It has established quality check system with set tolerance levels and deviation levels for acceptance,
acceptance with penalty and rejection for the products. Stock audit is done in month of April.
Weaving and dyeing training programs are also arranged for weavers.
Exhibit 4.19 Actual photos of front and rear side of powerloom imitation product ‘Semi-Paithani’

1. Pallav from front view and rear view (Semi Paithani)

2. Butti from front view and rear view (Semi Paithani)

Source: photos taken by author

Exhibit 4.20 Actual photos of front and rear side of authentic Paithani

1. Pallav motif from front view and rear view (Paithani)

2. Butti motif from front view and rear view (Paithani)

Source: Photos taken by author

 Table 4.67 Indian Sarees registered for GI and their Logos
GI GI Name Goods State Journal Photo (from web) Logo
No No
4 Pochampally Silk AP 2 No
Ikkat

5 Salem Fabric Silk TN 6 No

7 Chanderi Fabric Silk MP 2 No

8 Solapur Chadar Textile Maharashtra 6 No

9 Solapur Terry Textile Maharashtra 6 No

Towel

10 Kotpad Cotton Orissa 4 No

Handloom Fabric

11 Mysore Silk Silk Karnataka 3 No

12 Kota Doria (Logo Silk Rajasthan 5

added Later in
Journal 34)

15 Kanchipuram Silk TN 4 No
Silk
GI GI Name Goods State Journal Photo (from web) Logo
No No
19 Kullu Shawl Wool HP 7
(Logo Added
later in Journal
52)

21 Madurai Sungudi Cotton TN 7 No

22 Orissa Ikat Silk Orissa 12 No

46 Kashmir wool J&K 13

Pashmina

51 Kani Shawl wool J&K 13 Yes (Logo - not

Available)

55 Muga Silk (Logo Silk Assam 16

added later in
Journal 52)

76 Ilkal Saree Silk Karnataka 17 No

77 Molakalmuru Silk Karnataka 21

Sarees

92 Arani Silk Silk TN 23 No

GI GI Name Goods State Journal Photo (from web) Logo
No No
93 Kovai Cora Cotton TN 23 No
Cotton Sarees

94 Salem Silk Silk TN 23 No

known as Salem
Venpattu

99 Banaras Brocades Silk UP 29

and Sarees (Logo
added later in
Journal 49)

122 Uppada Jamdani Silk, AP 27 NA No

Sarees Cotton,
Sico
127 Tangaliya Shawl Wool Gujrat 29

136 Khandua Saree Silk Orissa 29 NA No

and Fabrics
137 Gadwal Sarees Silk AP 32 No

138 Santipore Saree Silk WB 29 NA No

149 Kinnauri Shawl Wool HP 32 No

150 Paithani Sarees Silk Maharashtra 33 No

& and Fabrics
153

152 Balaramapuram Cotton Kerala 30 NA No

Sarees and Fine
Cotton Fabric
App GI Name Goods State Journal Photo (from web) Logo
No No
167 Gopalpur Tussar Silk Orissa 42 NA No
Fabrics
170 Kasaragod Sarees Cotton Kerala 32 NA No

172 Champa Silk Silk Chattisgarh 34 NA

Saree and Fabrics

173 Baluchari Saree Silk WB 41

174 Kachchh Shawls Wool Guj 40

176 Dhaniakhali Cotton WB 41 NA

Saree

179 Kuthampully Cotton Kerala 32 NA No

Sarees
180 Bhagalpur silk Silk Bihar 45 NA

189 Venkatagiri Silk AP 37

Sarees

197 Maheshwar Silk MP 44

Sarees & Fabrics

198 Mangalgiri Saree Silk AP 45 NA

GI GI Name Goods State Journal Photo (from web) Logo
No No
207 Dhalpathar Parda Cotton Orissa 44 NA
& Fabrics

208 Sambalpuri Silk Orissa 44 NA

Bandh saree &
fabric

214 Narayanpet Silk Telangana 47 NA

Handloom saree

215 Dharmavarm Silk AP 54 NA

Handlooms Pattu
Sarees & Paavdas

217 Bomkai Saree & Silk Orissa 44 NA

fabric

219 Habaspuri Saree Silk Orissa 44 NA

& Fabric

220 Berhampur Patta Silk Orissa 44 NA

(Phoda Kumbha)
Saree & joda

225 Chendamangalam Cotton Kerala 41 NA

Dhoties & Set
Mundu
GI GI Name Goods State Journal Photo (from web) Logo
No No
232 Patan Patola Silk Guj 50 NA

237 Banaras Brocades Silk UP 49 NA

and Sarees
(Logo)

371 Shaphee Lanphee Cotton Manipur 55 NA

372 Wangkhei phee Cotton Manipur 55 NA

373 Moirang phee Cotton Manipur 55 NA

383 Kullu Shwal Textile HP 52 NA

(Logo)

384 Muga silk of Textile Assam 52 NA

Assam (Logo)

-- Orissa Pattachitra Handicraft Orissa -- NA

(Logo)

-- Surat Zari Handicraft Guj -- NA

(Author Compilation from http://www.csb.gov.in/gi-registration/,

http://ipindia.nic.in/girindia/)