The weavers of Varanasi

25.02.2010
PVCHR, Varanasi , India
 What does PVCHR want to attack

• Sustainable improvement of the working conditions

• Sustainable improvement of the living conditions and the daily implementation of

labor/human rights

• Strengthen the local community by strengthen every member

• Financial support via (foreign) corporate investment

 What does Varanasi need?

One Solution: Foreign capital to stabilize the local weaver industry

Idea 1: (short-run) social projects Idea 2: (long-run) commitment of a a

sponsored by a (foreign) investor
(Foreign) company’s view:
-high attraction due to low maintenance,
low cost but great media impact
- potential for significant image
improvement
Weaver’s view:
-no assured long-term stabilization of the
weaver industry
- hazard of illusion promises and high
degree of disappointment in the long-run
- in absolute terms: improvement of the
situation
(foreign) investor to install fabrication
(Foreign) company’s view:
-attraction depends on long-term
profitability (see Is Varanasi attractive?)
-extra effort required to convince western
customer of responsible action ( Label still
shows “Made in India”)
Weaver’s view:
see discussion on the following page
 The impact of long-term capital investment

[+] [-]
- Absolute wealth increase due to job creation - Question: Hazard of long-term development

- Potential for improved employment conditions due - Does the company keep its ‘social’ intention? Is the
to corporate Code of Conduct implementation fair on its day to day basis?

- Empowerment by employment of women - Hazard of an power misuse of the company

( overtaking the market, misuse the trust towards
- Artisan competencies of the Weavers (up to a profitability)
certain extend) can be used
- Environmental impact of a production side
- Higher standard of working conditions ( insurance, ( especially stressing already unstable water
situation)
employee safety , work-contracts )

- Multiple positive effect on the regional economy - Debate: Fairness of distribution of working spots
and especially related industries through new job ( Who is allowed to profit and work in a factory?)
creation Please see the following slide
Multiple positive effects on weavers are
possible
 Challenges of both ideas
Idea 1: (short-run) social projects
sponsored by a (foreign) investor
-Which kind of project is helpful for the
community?
- What happens when the program is
finished? Attempt to long-term partnership!
- More than simple media attention is
required to improve situation on a
sustainable level.
Idea 2: (long-run) commitment of a a
(foreign) investor to install fabrication
-Behavior of the companies in the long-run
is crucial
- Problem: large textile companies usually
use suppliers only (due to low specificity)
and are not interested in building own
fabrication sides.
- Is Varanasi actually interesting for a long-
run commitment?
(see discussion next slide)
 Is Varanasi attractive?

[+]
• High percentage of high skilled
weavers who are passionate about
their work ( 100.000 weavers in
Varanasi)
• Close to Nepal border ( ease of
resources from China)
[-]
• Big Issue: Transportation -
- clean transportation is hardly possible
- no direct connection to harbors
- underdeveloped train system

• Problematic of already existing production side!

Within its CSR, the company can gain
great international press! How many costs is the investor willing to bear?
 Idea 3: Attract Indian Investor

• Companies like e.g. Welspun could act as a partner

• Advantages: Varanasi wins a central position ( Triangle: Mumbai, Delhi, Calcutta)

Closeness to Nepal border (resources from China)

Varanasi’s weaver competencies are well known within India

Indian companies know how to position in the Indian environment (time

and cost advantage)

 Idea 4: Creating non-profitable link

NGO functions as link between weavers and the international market

• NGO Tasks:
Creating online shop (traditional and modern products, home ware) /Domestic
organization of orders/Advertising( gain trust and show ‘reality’)/Supply of
material for the weavers/Delivering of products to customer ( logistic partnership
required!, Receipt shows all prod. inform.)
• Requirements to Weavers:
deadline conform, regular communication with the NGO, consistent work results,
• Extra ideas:
personification of the product ( brief letter, personal story, message, signature), use
environmental friendly package,

Inspiration: http://www.arzustudiohope.org
 11 Cluster Scheme ( not complete)

• (Idea: development in an collective manner)

• Integrated Handloom Cluster Development Scheme

• Different clusters: Shantipur cluster, handloom cluster

• MSME cluster:

• NMDFC Cluster: possibility of loans and marketing support via SCA’s

• Micro credits can be attained via NGO’s)