This RTI exposed the reality of KVIC .


Read the RTI document first ;

A & B ) Points to note, that 42.46 % of the artisans of KVIC are not Aadhaar Linked . Despite court orders and the orders for making cashless payments to Artisans , KVIC continued to make cash payments

Also, in absence of the Aadhar linked bank accounts , we don’t know how many artisans are genuine and how many are Ghost artisans ?  I tweeted the same to the PMO on 25th September , 2017

Now , most of the people know why i am feared and avoided at KVIC by the corrupt and the inefficient. As a sitting member of the Commission , i took the hard decision to tweet the PM / PMO . How many can do it in Modi Government !!!

C) When in January 2018 Commission meeting i asked the Chairman / Commission ; do we have the record of how many artisans died in the past three years . There were blank faces all around and i was told, we don’t know how many people have died in the past three years . My next question was ; then how are we making payments ( including cash payments ) and to whom ? Now , people should know why a false complaint was filed against me ?

D) Lastly , KVIC has been making tall claims of creating lakhs of jobs , but this RTI shows that neither lakhs of jobs were created nor there were any plans till Feb 28th, 2018 to add more artisans, but plans were under formulation . This is precisely the reason that i am not being sent any minutes or invited for meetings post Feb, 2018. I am not going to accept fudged data or false statements,  and lastly , i don’t get bullied with name dropping from people. I hope, i have put the facts with proof.

 

rti.png

When i put my foot down on KVIC buying three expensive flats for Rs.23 crores in Delhi


From: “Prof. Rajendra Pratap Gupta ” <emailrajendra>

Subject: Purchase of 3 expensive flats by KVIC for Rs. 23 crores

Date: 8 March 2018 at 8:43:41 AM IST

To: chairman kvic , commission cell , arunk3042 >, narayan.borkataky”`g. chandramouli`, vikasbharti1983  drsangeeta.manihina bhat <>, “`dr.sheila rai`” , cvo@kvic. ceo cell mumbai , chief executive officer , usha suresh >, ushasuresh ushasuresh , b h anil kumar Joint Secretary>, “`d. p. s. negi msme`”`satya narain shukla dy ceo kvic` >, “Rajendra P. Gupta” 

When I had read the agenda papers for the Commission meeting held on 6th March at Mumbai , one of the agenda items was,  purchase of  expensive three flats at Commonwealth Games Village for RS.23 crores by KVIC and the need for the  purchase was not justified.

I have the following submissions for the commission :

1. KVIC is not into the business of real estate

2. Our head quarters and flats for employees are already in Mumbai and hence I see no reason for this proposal to buy flats at Delhi

3. Public / tax payers money has to be used rationally and for the purpose defined in KVIC act . We must therefore invest in rural areas and for promotion of Khadi and Village industries and not invest for purchasing expensive flats

4. If we are in desperate need of three flats . We could rent them and that works out much cheaper

5. This money be spent for rural artisans / training’s / R& D and other important activities that help in increasing the income of artisans

6. I am given to understand that this proposal was approved in the commission meeting. Since I was not present , I must submit my views . The Commission should reconsider the decision .

Rajendra Pratap Gupta

Member , KVIC

SFC meetings were a sham at KVIC till i took a tough stand


From: ram narayan  

Subject: Re: SFC meetings

Date: 2 June 2017 at 12:53:04 PM IST

To: Rajendra Pratap Gupta  

Reply-To: ram narayan  

Respected Sir,

The directives/instructions as given by your kind-self vide e-mail dtd. 01.06.2017 has been noted and would be complied with accordingly in future.

the Action Plan of the Marketing is being sent to you separately for your kind guidance and direction. The same is proposed to be place before the SFC in the ensuing meeting to be held on 8th June, 2017 at Mumbai after your kind approval.  

With regards,

(Ram Narayan)

Asstt. Director Incharge (Marketing)   

On Thursday, 1 June 2017 2:11 PM, Rajendra Pratap Gupta < > wrote:

The Concerned officials of KVIC :

1.Please make note that henceforth , before the agenda is placed before the commission , the i/c of the department / project should make a 10 minute presentation

2. SFC agenda should never be placed before the Commission without providing for adequate time for discussion

3. Any agenda with regards to marketing should be brought to my notice ( with all the relevant details ) before presentation to the Commission

In hope of compliance

Rajendra Pratap Gupta

When you point mistakes , instead of correcting the mistakes , egoistic dumbhead got upset .


(Comments of Rajendra Pratap Gupta , Expert Member (Mktg) , KVIC on the proposed Khadi D’vidend project )

 

01st, Feb, 2018

Hon’ble Members, KVIC, CEO, F.A. & Deputy CEOs.

 

CC:
PS to Hon’ble Union Minister (I/C), Ministry of MSME, Govt. of India
Secretary, Ministry of MSME
JS- ARI
FA – MSME

—————————————————————————————————————————————-

Dear Colleagues,

This is with regards to the document, ‘Khadi D’vidend’, handed over to us before lunch, during the Commission meeting on 23rd January, 2018. With no time left to discuss, we were asked to share our inputs, and a one day separate session was promised to discuss this project.

I have gone through the document, and I wish to submit the following comments for the consideration of the Commission. I seek your pardon in advance, for any inadvertent remarks:

Document flow / structure:

  1. Credits Section, Page 4: Inspiration has to be Mahatma Gandhi and Hon’ble PM Modi ji. It was Gandhi Ji’s vision for Gram Swaraj which had a Khadi component in it and it is the vision & support of the Hon’ble PM that Khadi has grown so much . I am surprised, that the reference to the founder of this movement and the Hon’ble PM is missing in the start, and the reference to Mahatma Gandhi is totally missing from this document itself. The highest official who vetted this document must resign on moral grounds or should be sacked for not mentioning the name of Mahatma Gandhi & the Hon’ble PM in this document’s introduction.
  2. Vision and Development be owed to the Hon’ble Minister, Shri Giriraj Ji, who has been tirelessly working and supporting the entire work of the Commission. The document talks about the vision of the Hon’ble Minister on page 13 & 19, but does not give credit to the Hon’ble Minister for the vision. It is a shameful act, people should refrain from stealing someone’s ideas and presenting it as theirs!!!
  3. Administrative and Financial diligence be owned up by the Chairman and his team who are responsible for making this document and doing the due diligence
  4. Page 13 refers to the discussions with experts and due diligence, but a cursory glance at the first few pages gives an impression of an inexperienced (on how KVIs operate) consultant who worked on this project and who does not even think appropriate to refer to Mahatma Gandhi, the founder of this movement!! Looks like, s/he does not know the history of KVIC. Please make a detailed presentation of the people / experts consulted and the inputs received from each of them.
  5. The intent of this ‘Khadi D’VIDEND’ document is similar to ‘Khadi Focus’ & the ‘Vision 2022’ documents, and hence, one has to carefully look at the direction we are taking. Another project in a few weeks after ‘Khadi Focus’ and ‘Khadi Vision 2022’, makes me a little concerned. Firstly, we need to see the outcome of the phase -1 of ‘Khadi Focus’ and ‘Khadi Vision 2022’ documents.

 

       6. I see that, wherever there is a financial involvement (money to be spent), there is always a rush to breeze past the Commission and start buying Charkha’s or looms . SFC meetings need to be given more time and taken more seriously.

To the best of my knowledge, charkha / loom distribution is one thing and utilization is another, and this point was raised by myself in the Commission meeting held at Ahmedabad on 23rd January.

We must see: a) How much capex has been spent on buying equipment in the past year, and what is the productivity gain per man hour or man day and more importantly, the income of the artisan. Please refer my note on the document ‘Khadi Focus’. The very basis of the Khadi Focus was wrong. It lacked basics and according to ‘Khadi Focus’, the income of the artisans would reduce by about 17 % despite a five- fold increase in Khadi turnover. With such faulty planning, why are we coming out again and again with some program or the other. Such activities (launching one program after another to make news!) will tarnish the image of the Government, which aspires to do real work. These half-baked programs to self-promote do no good to anyone and one day, will embarrass the PMO, when they learn the ground reality behind such moves. Actually, there should be one long term plan and that’s it, and its outcome must be closely monitored for its impact on a bi-monthly basis; which includes, Khadi, Village Industries, Bee Mission.

Viability issue: Profits

  1. There are many existing Khadi Institutions (KIs) that are gasping for breath and our first priority should be to revive the ones that can be revived and then, any new investment should happen for greenfield projects. Off and on, we get negative publicity in newspapers for the ‘dead’ or the ‘abandoned’ KIs. We must first survey the ‘weak’ KIs in the 115 districts and revive them. Surprisingly, this project calls for an end to the subsidy for Khadi and KIs (page 5). Without having any ‘risk mitigation’ strategy, this will put an end to the Khadi era in the next 5 years
  2. Also, during the last commission meeting, I have raised the issue of how many KVIC artisans have died in the past two years and no one has a record!! Then how genuine is our payment to artisans. And now, as per this plan, we are going to add more 80,000 charkha’s & 16000 Looms, empaneling new artisans? Are we building on a payment / MDA scam? Why are the artisans not Aadhar linked? Let us geo-tag all the Charkhas and Looms and Aadhar link all artisans.
  3. Also, during the last commission meeting, I have raised the issue of profitability of khadi institutions. This document mentions about 2000 KIs on page 10, and also talks about ‘Unwavering motivation to develop sustainable self-reliance among rural communities’. But there is no report available on how many of the 2000 KIs are making profits. My other commission members regularly post pictures of defunct KIs and not much is being done to help them revive.The first program should be to revive them and make them self-sustainable and then, make them earn decent profits
  4. Page 11. Please provide the a) institution wise b) product category wise and c) district –wise break-up of Rs.51,997 crore turnover mentioned here and what is the profit ?
  5. What is the basis of the claim that KVIC – the patron, and ‘original’ promotor, will recover 25% of the net margin generated. If the Charkha and looms are so profitable a proposition, we must discuss why our KIs are cribbing for lack of profits in this business.
  1. Page 27 states that the government will recover the investment costs @ 25% of the annual net income from the project, BUT, on page 24 it is stated, that the net profit will be 20 % on the figures quoted. I also understand that the 20 % net profit  will mean that people will have expenses to take care of, and loans to repay? I somehow feel a need for a complete actual model rollout to believe these numbers- we need a test pilot for this program.
  2. Data sets are confusing. A simple calculation of investment by mother institutions to the tune of Rs. 1.63 Crore for working capital (page 15) and capex of Rs.48 lac (40 looms @ Rs.45000 = Rs. 18 Lac & 200 Charkhas @ Rs.15000= Rs. 30 Lac) per village (and this does not include training and other associated costs), creates an employment for 250 persons (page 20), which means an investment of Rs. 84,400 per person (refer the document, page 15); whereas, the scenario quoted on page 25 is quite different. It quotes, per capita investment of Rs. 21,001.78 can yield a return of Rs. 7,320.00. Either I have got some numbers wrong or something is amiss

Plan and business Model

  1. The web of partnerships mentioned on page 14-15 makes me believe that some consultant has prepared this document without the basic understanding of how KVIs function, which markets they operate , and the legalities involved in making these web of partnerships work!!!
  2. Khadi Gaon Sansthan would be a legal entity? Please explain the structure.
  3. The document mentions on page 15 that, “400 villages from across the country will be selected though a participatory process involving different agencies and your letter no D.O. NO.CS/01-III/2018 dated 29th January, 2018 mentions it as a ‘Prestigious Project’, and requests the Commission members to identify the villages. These are quite confusing. Was the rural development member, Padamshree Ashok Bhagat ji involved in drafting the D’VIDEND document ?
  4. Please explain the need of KIP (Khadi Institutional Partner) and what is the financial and administrative relationship, refer Page 15.
  5. What is the criteria used to identify the KIs under KRDP. “Please detail out the ‘Set of criteria” as mentioned on page 15.

19. What do you mean by ‘Actual’ Khadi Business Partner (KBP), and why is this needed when there is a KIP? Please refer page 16 and point above on KIP. Also, as per page 27, KBP will have the responsibility of raising the working capital of Rs.1.63 crore. What is the basis? Any discussion with the potential KBP be shared with the Commission.

20. Organogram on page 28 is about Patronage and governance which rests with the Commission. KIP takes care of Administrative management, KBP takes care of Business Management and KGVS takes care of Production Management!!! Now, with over two decades of my board experience and running corporates, I am at a loss to understand why we need different entities for a) Governance b) Administrative Management c) Business Management d) Production Management? Looks like someone who made the document never ran a company as a CEO / MD / Chairman!!

 

  1. Execution (page 17) is an unrealistic scenario and ridden with complexities and I am little puzzled with the terminology as well like; ‘ Execution Agreement’ & ‘Enterprise Agreement’. I am sure we will need training on both these
  2. Of the total 6,38,596 villages, we have chosen 400 villages for this new model. What is the basis of 400 villages. Please detail out how you would identify the ‘Economically backward villages”, as mentioned on page 14 (what is the objective criteria)?
  3. Description on page 18 makes it very complex when the document talks about participation of Ministries, KIs, corporate entities, State Governments, and district administration. If we relate the mention of KIP (page 19) liaise with various ministries, state governments and district administration to initiate making sufficient provisions for the amenities in villages; such as the approach road, electricity, water, sanitation etc., all leading to a Khadi Gaon, and needs to be done till August 2018, then the project is quite un-realistic in its assumptions, and doesn’t take into consideration the inter-ministerial issues.

Timelines :

  1. Timelines are unrealistic and we can see from page 29, all deadlines mentioned for January are missed, so this project appears to be a ‘paper based concept’ that is not realistic and needs going back to the drawing board, and working with people with reasonable understanding of retail and Indian market.
  2. Page 29 mentions that bank will give working capital. What is the collateral? Which bank is giving Opex? What is the rate? Will it affect the 20 % profit margin? All these are unanswered from a hypothetical model quoted in this Khadi D’VIDEND
  3. The mention of the employment statistics on page 20 will hold good as long as the end product is profitable enough for people to meet their daily needs. What is the different thing in this model which is not there in the KIs model for the artisans to make profit. I am always wary of the numbers thrown, as these don’t stand the test, like the numbers in Khadi FOCUS document didn’t add up at all!
  4. Page 25 mentions spinners rate @ Rs.7.5 per hand. Does this need any approval, as when the Commission increased the rate in the Sabarmati meeting, it was not approved by the Ministry
  5. Page 13 of the document says that the 31 % of the rural artisans are women, but the note No: DK(KPM)/Five year plan/ Gen/2017-18 dated 08-01-2018 says, ‘most of the rural artisans are women’. The facts and figures have to be double-checked before being presented to the Commission

Scalability:

  1. W.R.T. the ‘Organizational Wealth’ of training institutes as mentioned on page 21, Dr. Sheila Rai’s inputs would be important. Though I have my own doubts on training 2000 people and the costs involved-given the timelines, but I will let the expert member (Training) comment
  2. Page 23 mentions production of 512 lakh meters fabric annually. But do we know how much fabric is produced by the existing 2000 KIs? Please make a presentation on the same. Also, during the last Commission meeting, the director (Mr. Khandelwal) looking after Raw Materials, had indicated that we have a crisis of procuring raw material for the existing production needs. How come we serve the demand of raw materials for the additional 80,000 charkha’s and 16000 looms? Has this challenge been factored?
  1. Page 38 does not give any assumptions and the basis for the numbers like 60 % will be converted into premier shirting, 40 % will be converted into ladies salwar, chudidars etc. ?
  2. Page 42 mentions about zonal distribution. What about the North East? We have seen the issues raised by the Commission member from NE about the shortage of staff. Despite this, all such paper projections have been made without a plan? West with a much larger population has projected only 45 ‘Khadi Goans’ and N.E. has 38? We know that the west is amongst the worst performing region as per the presentation made in the last commission meeting. This is not justifiable
  3. Page number 26 talks of three definitive phases i.e.; establishment, development and sustainability. This is a confusing statement. Need a detailed presentation on this.
  4. There is no data to support how much a typical village earns and how it spends and what are its needs? Given all these facts, this project, in my view is just a photo-op and a press-release. If some elements of this project are to be taken, they must be backed by a test pilot and then a scaled up pilot, iterations included in the phase II and then, a full blown roll out. Taxpayers money cannot be blown away on the whims and fancies of few, based on a concept paper with no experience of ground reality

I would suggest that you have a look at the way the marketing department has initiated the projects. There is a lot to learn on how there was an overall vision, backed by a rationale and a thinking and then, we took up some key initiatives.

This plan is devoid of any field work or realistic experience and is too bookish in context and over-complicated with no clear plan, and over-complicated structure.

Since this program is about villages, inputs should have been taken from Mr. Ashok Bhagat and other members who are working in the villages

My genuine concerns are around the following, and am sure the team will clear them in the meeting and make this project simpler, financially sound and fool-proof in implementation:

A. Concept
B. Planning and business model C. Timelines
D. Viability & Scale

In fact, this program should have been started in the first 3 months of re-constituting the commission and not at the fag-end, given the timelines. It will only lead to buying of equipment, spending and thereafter, it will be tough to find any business continuity and outcome.

Lastly, on page 30 in the conclusion, the document says, “Khadi D’VIDEND’ is also an integral part of the Khadi Vision 2022’. If so is the case, why this has been presented as a separate program with a vision etc.? This confounds the confusion. This ideally should be subsumed into Vision 2022, and not as a separate program.

 

My suggestions on the way forward:

  1. Under Vision 2022; segregate-zone-wise, and pick up 2022 villages across 115 backward districts identified by NITI Aayog
  2. Scan them for existing KIs which are ‘Weak’ or ‘Dysfunctional’
  3. Adopt a ‘Zonal Level- Cluster Approach’ for leverage and logistics. Also, this can help in various other functions like group-sourcing, marketing and logistics
  4. Prepare a revival plan with Solar Charkha’s & Looms with forward linkages
  5. Such KIs should be allocated 25 % of the KVIC ‘exhibitions’ (subject to their willingness to participate), so that they can sell and promote their products
  6. Their quota for government supplies be mapped, and accordingly incentivized to supply the government contracts and have a consistent source of income

Please refer the note No: DK(KPM)/Five year plan/ Gen/2017-18 dated 08-01-2018 that states that Khadi is facing stiff competition from other sectors of textile industry and its market share (production) has been 0.5 % of the overall textile market in the country. This issue needs to be discussed as an overall strategy of Vision 2022.

Further, in the same note, the break-up of the 2011 KIs is given which states that;

  • 4 have a turnover of more than 15 crore (0.19 %)
  • 6 have turnover between 10-15 crore (0.29 %)
  • 27 have turnover between 5-10 crore (1.34 %)
  • 1662 (82.64 %) have a turnover of less than a crore.We have to turnaround these KIs and take them to the new level. Answers don’t lie in sitting in Bombay or Delhi offices, but those members who are willing, are free to join me to meet KIs across the spectrum, and evolve a robust plan to turnaround these institutions which are having a turnover of less than Rs. 1 crore. We need to get them to be Rs.5 crore. Those with Rs.15 crore turnover need to cross Rs. 50 crore. Else, someone will come with a new 3D printing technology and kill this Khadi forever. Those members who are willing to join me, please contact me. Let us do our groundwork in March-April and present the turnaround report in May–June to the Commission. Above all, we need to add more youth to the KIs movementCommission cell is requested to provide the list of all 2011 KIs with turnover, address, phone number and mobile numbers of the key officials of these KIs. This must be made available within 10 days of the receipt of the email. I believe this data is available with the HQ and must be ‘emailed’ ASAP – Mr. S.N.Shukla, please do the needful .Lastly, all documents like ‘Khadi Focus’, ‘Vision 2022’, and ‘Khadi D’VIDEND’ should be first placed before the Commission members, so that such glaring lapses can be avoided

    Thanks & regards

    Rajendra Pratap Gupta
    Expert Member – Marketing, KVIC , &
    Member , National Khadi & Village Industries Board

  • P.N: I am out of country till 6th Feb, but available on email / phone

 

Why the corrupt & incompetent at KVIC are so upset with me :-)


Date           :         April 02, 2017

From           :         Rajendra Pratap Gupta , Expert Member (Mktg). KVIC

To               :         Chief Executive Officer, Khadi & Village Industries Commission

CC              :         Chairman, Commission Members, Deputy CEO’s & other

concerned officials

Reference :        Following up on e-mails sent on Dec 28th 2016, 26th Jan 2017,  March 01 2017, April 01 2017 & Next steps

________________________________________________________________

The following may be noted and a time bound action plan be submitted to the Commission in the next meeting. Views of other members may be incorporated as and when received.

Data

The following data needs to be collated and presented in the next meeting. I understand that most of the data has already been collected post my email dated 28th December, 2016.

  1. a) How many stores are owned by KVIC b) how many are not owned by KVIC.

Details with location needed.

  1. What is the turnover per store (city-wise)
  2. How many average footfalls per day – store-wise
  3. Average bill value per customer – store-wise
  4. Number of staff per store
  5. Turnover per employee for each store (total turnover of the store divided by

the number of employees in a store).

  1. Highest moving category per store (break it up into rural / urban / state-wise)
  2. Peak –sales period (festive or discount season) and the categories that sell

during the period

  1. Operational cost per store in various cities
  2. How much is the marketing spend and what are the marketing activities – state and store-wise
.
  3. Is the marketing spend different for each store? What is the rationale for marketing budget allocation
  4. Any stores incurring losses
. Please provide details
  5. What are the product margins category-wise
  6. Do we have any quality-checks for the products. Please detail the quality control and quality assurance initiatives for various product lines. We need to ensure that the customers get the best value for their money spent at KVIC.
  7. Details of in-house institute / lab for quality checks
  8. Complete competitor / market analysis be done in-house to ensure that we are up-to-date on the evolving market dynamics, and our plans are future proof, keeping the competition in mind. If any competitor analysis has been done in the past, the same be presented in the next meeting

Action plan for 2017

For me, marketing is about activities that support sales; Increase our reach, foot falls, bill value, new customer acquisition, customer retention, customer service, increase sales of slow moving stock, as all this helps to improve profitability and enhances the value of the ‘Khadi’ brand . Also, marketing helps sales, and hence, quality of the products that we sell must also be of the best value to the customer. Hence all activities must cover these over-arching ideas.

  1. Details of special promotions / initiatives to increase store foot-fall, boost sales and profitability
for 2017. Success stories of the past should be presented
  2. Details of the new introductions planned 
in 2017.
  3. Marketing plan 
quarter-wise with objectives for each activity
  4. Which innovations are we trying to improve awareness and usage of Khadi products
  5. One dayKVIC Marketing Workshop to be organized in Delhi within the next 2 months. We must invite (a) All Commission members (b) Three representatives  from each Khadi Bhawan ( Incharge / Marketing person / Category head ( if we have ) (c ) Supplier representative of KVIC products across all categories and all partner institutions, and individual experts.  Would welcome suggestions from other members on the list of invitees

This workshop aims to brainstorm on ideating the best of marketing strategies to (a) Make KVIC products a household name (b) to ensure that the marketing is able to support the sales as per the vision of the Hon’ble PM (that every Indian must purchase  one garment of Khadi every year ) (c) Our bouquet of offering must cater to the needs of the household besides just Khadi d) We must explore online channel for wider reach and catering to the latent / potential needs of KVIC products to every household across the nation and beyond

  1. ‘National Khadi Week’ may be observed every year to host events, fashion shows, national essay writing competitions and debates, promote wearing khadi – all activities that rekindle the interest for Khadi . A plan be devised for the same and submitted by 07th Please let me know if the team wishes to sit with myself and discuss the same. We can start Khadi week once a year and seeing the response , we can plan a Khadi week twice a year. We can have a Winter & Summer Khadi week nationally, across zones, states and districts. This week can also lead to much wider visibility and acceptance with the segments that have remained beyond our reach till now
  2. KVIC Earn While you Learn program .We need to widen our outreach. I suggest that the KVIC marketing and sales team work in tandem on engaging the marketing / MBA interns for selling Khadi / KVIC products to various housing societies and corporates during the summer internship, and we can offer them retail margins on the sales of goods (under KVIC Earn while you Learn program). This can be extended around the year and across the country and not be just limited to MBA graduates but extended to all college going students and other people willing to enroll, besides the students. This will have a multiplier effect on our sales without any financial expenditure, and also, this will extend our outreach beyond our imagination. We can use Aadhaar based verification for employing people under this scheme. We may opt for taking a Rs.10,000 deposit and give them products for Rs.13000.00 (on MRP Value). So, they can earn Rs.3000 on the sale. Many such models can be developed by the team, and i will be happy to assist in developing this program. This can create employment opportunities for people ( part-time and full-time ) … SHGs ( Self-help groups) can also be leveraged for this program.
  3. Khadi Stores at major airports & train stations : before the end of this year, we must be present in major train stations and at least four-six major Indian airports . This will not just help in increasing sales, but it will be a marketing opportunity for travellers ( 30 million people travel by train daily, and millions of travelers use air travel and we must target them post the security hold area only ) . Next step would be open our outlets in major tourist cities of the world by early next year. Need a plan for the same and happy to assist the team on this.
  4. We must consider to participate in large corporate conferences with over 1000+ delegates in audience and take a stall for our products. These stalls must have a POS (point of sales) credit card terminal . We must frame a policy for this.

Also, besides participating in other conferences, KVIC must consider starting the ‘Ideas from India’ or ‘The Idea of India’ conference, an annual mega thought leadership summit, brain-storming ideas about ‘Global peace and Development’. Being sponsored by Khadi India and attended by leading national and international figures, this will become the most sought after conference based on content, and the official dress code for this conference be ‘Khadi wears’.

  1. KVIC, subject to availability of funds, must explore mobile sales outlets – Mobile vans. May be, a pilot can be explored to start with
  2. I have not seen a discussion in our last three meeting on KVIC efforts in social media. Also, a social media strategy as a part of the marketing strategy be initiated . I would suggest that the entire website be revamped. It looks too ‘administrative’ and over cluttered.  We must ensure that the website is customer oriented and there is ease of navigation, and we must let people register / leave their email id’s for us to create a database of customers for mailing list and promotions (even at the stores we must start doing this and start capturing the mobile numbers ), so that we can send them e-mailers / SMS for the new launches and offers . This will go a long way in connecting with our customers and boosting our sales
  3. We must replace paper carry bags with Khadi reusable bags, which must be branded with KVIC product and other information etc.. Please explore this option with cost / environment / branding perspective
  4. We must explore giving 5% discount to government employees . Please check the financial impact and FA must present a report in the next meeting
  5. EMI based purchase with SBI and other credit cards be initiated
  6. NCC / NSS / Scouts tie up be initiated for Khadi dress material
  7. Tie up with Indian Medical Association for Aprons of doctors and same for nurses and pharmacists – I have already initiated this
  8. Our Tag line needs to be, ‘ Buy Indian . By Indians and Be Indian’.
  9. USP ( unique selling proposition) of Khadi is that it is, “ Eco-Friendly, Skin Friendly and with a Zero Carbon Foot print’. Same be high-lighted in stores and out of store promotions
  10. Explore setting up of ‘Khadi International Division’ for exports, and operating stores internationally within the current KVIC structure as a separate SBU ( Strategic business unit).
  11. Modi Kurta and Modi Jacket ( under NAMO or Modi brand ) be considered for new launches . Also, as a strategy, we must promote both Nehru and Modi / Namo brand, and based on the initial off-take (sales response), we must replenish the stocks, so that consumer’s choice prevails and we don’t get labeled as biased
  12. Commemorative stamp and envelope be launched by KVIC on KVIC foundation day or during the Khadi week OR two stamps ( one for each Khadi week ) be done
  13. Register all charkhas and looms across the country as a part of the overall IT deployment and adoption
  14. We must get the valuation of ‘Khadi’ as brand done through an independent assessor
  15. Loyalty program be initiated when the IT deployment happens across the KVIC system. Also, a lucky draw be initiated for a certain bill value, which might lead to enhancement of the bill value
  16. KVIC must have its own online sales channel before December 2017. We might start with a few select product range and then expand to all by Mid 2018. This can increase our turnover by 2-5 times. Tie up with Post-office be explored. Also, post man could be wearing Khadi Dress. We must explore the same.
  17. Tie up with MBOs (Multi brand outlets) for Shop-in-shops to increase our outreach and sales . We must not just confine to our stores. Similarly, the franchise model be rolled out within 3-5 months with proper safeguards as pointed in the advertisement and agreement ( mail dated Jan 16/17 , 2017) .
  18. All tourist offices be approached for a mutually beneficial association . We can discuss the details
  19. We must have tailors at major KVIC stores, for ‘made to order’ / ‘custom made’ sales and for increasing employment
  20. Organic products must be an essential offering of Khadi
  21. Tribal products be patronized as ‘Heritage Brand / products’ and sold at airport / international stores / online. This will not only provide a good product line for marketing/ sales, but also provide employment and income and help in lifting the tribal economy over the long run
  22. KVIC must sell charkha’s as souvenirs besides artifacts associated with Mahatma Gandhi, including the bust of Mahatma Gandhi
  23. ‘Khadi’ Magazine must be started . It used to be highly popular but seems to have been discontinued . I will take the editorial responsibility
  24. R&D must be given a boost. Need details of all our R&D efforts
  25. During my store visits, I have noticed that proper directions (Neon signs) for trial rooms and product categories are missing in stores .. The same may be attended on priority by April 30th.
  26. Delhi – Regal store merchandizing (in-store arrangement) needs to be redone. Please discuss
  27. All store employees MUST wear Khadi uniform with Jackets having ‘name badge’. This will help customers to identify sales people and seek help, if needed
  28. Given the poor service levels at all stores, a ‘Mystery Shopper’ program be launched with an outsourced agency . Store sales staff should make a note of the product bouncing, and the same be informed to the inventory management team Also, all stores should have a message plate (sign board) prominently displayed behind every billing counter, “For feedback / complaints , please write to customer@kvic.gov.in. An email id be created with access provided to designated commission members and Deputy CEO rank official to address customer service related issues immediately.
  29. Tie up be initiated with NIFT ( National Institute of Fashion Technology) for new designs, and the contest be kept open to young creative minds. Same may be promoted on social media. Best designs be crowd-soured and rewarded
  30. Delhi Regal store is overstaffed ( 91 people)  when on the other side we have 2 staff at KGB Goa and Bhopal ( Are these the numbers of full time KVIC employees only or are there people on contract basis too  ? ). We need to rationalize the staff at each store and see what is the revenue per staff at every store … one of the indicators of bringing productivity at the floor level. Also, the store timing and working days should be as per the local market where it is located.
  31. During my surprise visits to KGB ( Delhi / Mumbai ), I have seen that the staff has been least interested in attending to customers. In fact, at the Regal store, i have seen our sales staff at the basement (cosmetics section, which is a major contributor to sales and profits ) sitting and chatting or playing on their cell phones, counter staff giving wrong information about price and availability to ‘potential’ customers , and the same has been reported to Supervisor / Mr. A.K. Garg .

Mumbai lounge is exceptional in customer service but the Mumbai HQ store is pathetic in customer service. We need to initiate ‘Store staff training program’ and this must be taken up on priority by the marketing team. If in future, i visit a store and find the shop floor people not attending to the customers, i would expect action against the supervisor

  1. ISO certification of Khadi Bhawans and offices must be done before 2017 financial year

 

Administrative issues

  1. We don’t get any time to discuss in detail the ‘Spot agenda’ items added in our monthly board meetings, and hence justice cannot be done with these ‘spot agendas’. No additional agenda be added on spot for the board meeting, except the one circulated to the members in advance ..
  2. Meeting notes be read out in the end, so that the points missed can be incorporated immediately
  3. Internal discussion forum for all employees be started either through an online forum or as an app for people to exchange views , success stories etc.
  4. I have seen that we are investing too much time in routine administrative issues. As discussed, the CVO (Chief Vigilance Officer) needs to bring the files to the commission only twice (Unless there is an exceptional action item for the members of the commission to deliberate / decide ) . Files should ideally be brought before the commission, 1) during seeking approval for inquiry 2) seeking decision on the final inquiry report 3) and all inquires be time bound. Same should be followed for most of the administrative issues. Commission’s time is being consumed majorly on issues other than forward looking and growth oriented / progressive agenda, and this must be addressed on high priority by the CEO
  5. It is observed that the officials need reminders to respond on queries from the Commission and the same be avoided. Whilst I do understand that all senior officials are busy and overloaded, but a response seeking more time would help rather than ‘No Response’. Also, I have seen the minutes of the previous three meetings I have attended. After each item number, there is an end note ‘Action’,  against which the designation of the official is written, which brings forth the accountability of the officials responsible for taking action and this is much appreciated. Also, now onwards, a time for completion (Completion date / completed by and report) be mentioned against each ‘Action’, along with the official responsible for it. Else, it is difficult for the members of the Commission to track what action was taken and when? Also, summary of such decisions of the previous three meetings be placed before the commission on a quarterly basis, so that we know if the organization has worked as per the directions of the commission and timely !.
  6. Commission members need to re-look at the organization structure to make it more efficient and agile, given the pace of high growth . One of the ideas is to move to a ‘Category heads’ organization structure with ‘transformational’ sales target and not just incremental sales growth.

We are a small and a cohesive team and we must ensure that we do the best possible to achieve the vision set for KVIC

Thanking you once again for all your support, and assuring you of the best of attention and support at all times

Best regards

Rajendra Pratap Gupta

Expert Member (Mktg)

Khadi & Village Industries Commission

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