Apparel September 2019 Apparel September 2019 issue | Seite 82

INDUSTRY INSIGHTS
KVIC’S RECENT SUCCESS
IS LARGELY DUE TO ITS
LUCRATIVE PARTNERSHIPS
WITH GOVERNMENT-OWNED
ORGANISATIONS.
As a result, while most retail players have
struggled to grow, KVIC has recorded a 25 per
cent increase in sales for all khadi products,
reaching R75,000 crore in the past year. To put
it in context, this amount is more than twice that
of India’s largest consumer goods company—
Hindustan Unilever (HUL), which capped R38,000
crore in sales this year. One thing is clear—khadi
is in vogue and the consumer has spoken.
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I APPAREL I
September 2019
This rise in KVIC sales includes myriad non-
apparel goods—such as papad, honey, and
cosmetics—as well. To drill it down further, we
can see that of the total sales of R75,000 crore,
khadi alone has achieved over R3,215 crore over
the past year, which demonstrates a growth figure
of 28 per cent. Reports from KVIC estimate that
the coming year will result in a further 20 per cent
overall growth for khadi goods, taking the total
sales to about R85,000 crore.
Vinai Kumar Saxena, Chairman, KVIC,
has publicly said that the aim of KVIC “is to
create employment, not generate profit”, and
that increased demand will lead to increased
production, thereby resulting in increased
employment. Since KVIC approaches the
khadi sector through the mandate of social
welfare—while exercising complete authority
over the sector’s operation—its activities are
funded by public monies. However, this alone
has not propelled the industry. A key factor in the
massive success of KVIC has been its near-total
monopoly on ‘brand khadi’, which has allowed
the organisation to become the sole khadi
supplier for major retail houses such as Raymond,
Arvind Mills, and Aditya Birla Fashion and Retail.
One thing that is abundantly clear is that the
khadi industry will continue to operate completely
within the ambit and heavy-handed support of
Government-supported initiatives—KVIC’s recent
success is largely due to its lucrative partnerships
with government-owned organisations. The likes
of India Post, Oil and Natural Gas Corporation
(ONGC), and Oil India have played a role in the
evolution of the fabric by using KVIC-sanctioned
khadi for employees’ uniforms and gifts.