The Indian handloom industry is one of the country’s oldest and largest cottage industries, having a long history of exceptional craftsmanship stretching back thousands of years and embodying the lively Indian culture.
More than 4.3 million people work in the handloom industry. With India’s demographic dividend upon us, we acknowledge the handloom industry in India as a rich talent resource and an essential source of employment for women and the oppressed.
If you’re looking to start a handloom business in India, you’re at the right place. Let’s look into the company more closely, along with essential factors like acquiring an easy business loan.
The scale of handloom in India
With over 2.41 million looms of various designs and constructions, the sector has a robust infrastructure and enormous manufacturing capacity.
Handloom items from India are known for their distinct designs and panache. The current trend is to combine vintage models with cutting-edge technology to create unique products for sale.
In the fiscal year 2019, India’s handloom exports totalled upto US$ 343.69 million. The commodity was valued at US$ 226.05 million in FY20 (till November 2019).
Handloom production accounts for around 15% of all textile production in India. In 2019-20, India produced 63,348 square meters of cloth. India has 95 percent of all hand-woven fabric in the world.
What are the government initiatives for the handloom sector?
Several projects are getting developed, and the Indian government has a solid organizational support network for the handloom industry.
This handloom company in India has resisted competition from the mill sectors due to efficient government participation through financial aid and other implementation of various developmental and welfare programs. It makes it easy to acquire a textile MSME loan.
The National Handloom Development Programme offers low-interest loans and marketing help and support for many block-level cluster programs.
In addition, the government has numerous supply schemes, export promotions, Geographical Indication of Goods, the E-Dhaga app, and other programs and initiatives.
You can utilize a business loan EMI calculator to understand the liabilities upon you after taking the loan.
Significance of starting a handloom business
Handloom weaving is presently India’s second-largest industrial hub, behind agriculture, employing nearly 3 million weaver families directly and indirectly.
Indian handloom has carved out a niche for itself both in India and overseas. With so many diverse types of handloom from various states, India has amassed a valuable treasury of invention. As a result, India has become one of the world’s most culturally diverse countries.
Tips to start a handloom business in India
1. Increase your product knowledge
If you’ve worked in the apparel industry before, you won’t start from zero. You might want to enrol in a short continuing education course to learn about the fundamentals of textiles, how they get created, and how power looms differ from handlooms. (For CE programs, go to your nearest NIFT centre.)
2. Clear all documentations
Every business has a legal aspect in addition to a clear goal and capital. There will be a legal aspect to establishing a fabric business, whichever medium you choose.
Obtaining a trade license or owning or renting business premises are examples. The regulations and requirements will vary depending on your geographic location and the size of your firm, but they will all be necessary. Also, clear out an easy business loan to assist you financially.
3. Locate handloom dealers and manufacturers
You can locate several handloom vendors with the assistance of government agencies under the Ministry of Textiles (they go out of their way to help). Numerous cluster projects can provide you with high-quality, certified products.
4. Recognize the preferences of the market
People’s tastes change over time, so keep an eye out for popular variations of conventional designs. You might want to look over some fashion week data to see what colours, themes, and materials are trending.
It will assist you in curating inventory based on market demands and investing in the appropriate products.
5. Examine the current market’s trends.
The market is a constantly changing dynamic, and as a businessperson, you should be aware of these shifting dynamics. Every facet of the business, from pricing to consumer behaviour, must be continuously monitored and studied.
Having a thorough understanding of the market will also be advantageous in the long term. It will assist you in adapting to future trends.
6. Begin by selling a tiny sample batch
In worst-case scenarios, make sure you’re investing an amount you can afford to lose. Engaging in branding and package actions is a good idea to help your items stand out in a crowded market.
Form a partnership with a local store that sells handlooms and begin trading on consignment.
It will keep you from having to invest in a shop space immediately. Also, try dealing in flea markets that focus on handcrafted items, as the chances of reaching your target audience are higher there.
7. Collect and act on customer feedback
Try to figure out why a consumer chooses a product from you. As previously stated, the handloom industry has become crowded.
Therefore it’s critical to understand why someone decides to buy from you and what will entice them to do so again. It’s crucial to crack this component to keep the business developing.
8. Focus on marketing.
Whether it’s B2B or B2C, promoting your brand is critical. Marketing is a broad term, and with the expansion of the digital arena, we now have a plethora of options.
There’s a lot to accomplish, from successfully pitching your USP to being active on social media to investing in an offline promotion.
The preceding principles are merely the tip of the iceberg; starting your own fabric business entails a variety of considerations. Finding the correct mix between strategic planning and creativity is essential for a successful handloom business.
Ziploan offers you a textile MSME loan for up to Rs. 7.5 Lakh if you’re looking for an excellent and easy business loan! Get in touch with the team and start your dream handloom business today.
Frequently Asked Questions
What is positive about this sector is its global business potential, social and climatic impact, quality and uniqueness. Handloom is one of the most promising industries and is going through a lot of transformation right now.
The production of handlooms in 2018 to 2019 was 49,476 crore, and Indian handicrafts and handlooms are INR 24,300 crore industry as of 2021 March. As per the Fourth All India Handloom Census, the number of households engaged in handloom activities was 31.45 lakhs.
Handloom includes weaving of fabric using hand and a tool or a loom made from wood while Handicraft includes anything that is handcrafted or made by using hands or with minimum use of any hand tool which includes handloom too.
The Textile industry is basically concerned with the design, production and distribution or marketing of yarn, Fabrics or readymade clothing. This industry is considered as a profitable for new and aspiring entrepreneurs.
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