CARPET INDUSTRY

Group 14

Synopsis
Indian carpet Industry
Major market facts
USA
Germany
South east Asia
Rest of the world

Types of Indian carpets

Handknotted woollen
Tufted woollen
GABBE woollen
Handmade woollen
Pure silk

Synopsis

contds..

Carpet export promotion council

Competition
Iran
Pakistan
China
Nepal

Issues and Problems

Infrastructure
Lack of resources
Non availability of market intelligence
Unattractive tariff structure
Negative Publicity
Non-recognition of carpet industry by the policy framers

Synopsis

contds..

Suggestions
Product
Finance
Marketing and Promotion
Infrastructure

Issues in Indian Carpet Industry

Import Duty structure Domestic industry is highly dependent on
imports but import duty rates are very high.

Issues in Indian Carpet Industry

Import Duty structure of competitors
Australia

New Zealand

Issues in Indian Carpet Industry

Inadequate quantity of domestic wool
Slow growth in sheep population that had grown at a CAGR of 1.1%
during 2003-2008
High sheep mortality, with an average annual mortality rate of 1215%
Lack of development of high wool yielding sheep breeds; inadequate
cross-breeding and selective-breeding practices
More money by using sheep for meat production than wool.
Shepherds earn 15% of total earning from sale of wool and 75% from
sale of meat
Dilution of carpet grade wool producing sheep by inter-mixing with
mutton producing animals, such as goats

Issues in Indian Carpet Industry

Inadequate quality of domestic wool
The system of grading is virtually absent at the sheep breeders
level, which affects the quality of the raw material as also the
finished product
Inadequate processing facilities (both pre-loom and post-loom) such
as scouring, carbonizing, deburring, dyeing, carding, spinning,
handloom weaving and finishing, etc, particularly in the medium and
small-scale level; this affects the quality of the finished product
The handloom industry uses crude form of carding which results in
low productivity
Inadequate testing facilities and quality control measures

Issues in Indian Carpet Industry

Presence of long chain of intermediaries
Grocers are unable to fetch higher price due to long chain of
intermediaries

Issues in Indian Carpet Industry

Carpet Export Promotion Council (CEPC) - Set up by the
Government of India in 1982 to promote the exports of
hand-knotted carpets and floor coverings
View of exporters about CEPC
CEPC export figures do not reflect the true picture
CEPC delegates have their own interest
Do not arrange proper promotional activities

Issues in Indian Carpet Industry

Poor Infrastructure
Bhadohi Carpet city of India
No proper roadways to and from the city
Electricity supply is average 7-8 hours/ day
Continuous use of generators by carpet exporters
Total 5-6 generators are used by middle size exporter
Generators run 14-16 hours per day
Cost of running one generator is Rs. 80/hour
Results in increased cost

Issues in Indian Carpet Industry

Wages for carpet producers Approx amount Rs.
2500/carpet

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YOU