Prepared by: ARVIND CHAUDHARY CLUSTER DEVELOPMENT EXECUTIVE

Under Guidance:

Sri K.N.N. Singh DIRECTOR

GOVERNMENT OF INDIA MINISTRY OF SMALL SCALE INDUSTRIES SMALL INDUSTRIES SERVICE INSTITUTE E-17,18 INDUSTRIAL ESTATE, NAINI, (U.P.) PH: 2697468, 2696810, FAX: 2696809 E.MAIL: [email protected]

he diagnostic study report of the pottery industry cluster in Chunar presented in T the following section:

The report is based on interaction and deliberation with the key SME actors in the cluster, the entrepreneurs with which the key SME actors do business, SME association and technical institution. The secondary information was collected from various sources like books, articles, statistics collected from various libraries, documentation centres, association office, etc. Information interviews were also conducted with some intelligent and experienced entrepreneurs who have a very rich knowledge in the pottery manufacturing work.

The report is prepared in the following way:

01 Description of cluster

1.1.1. Defining the products. 1.1.2. Defining the various sub-activities 1.1.3. Current out put 1.2 Geographical location 1.3 Core Cluster Actors 1.4 Other Cluster actors 1.5 Current Institutions 1.6 Present Cluster Map

02 Value Chain Analysis 03 Problems identified 04 Vision of the cluster 05 Strategy 06 Future cluster Map 07 SWOT 08 Action Plan 09 Proposed Activity 10 Budget estimation

01 DESCRIPTION OF THE CLUSTER

Chunar under district is known for ceramic activity for long and State Government has developed sheds and common facility centers as a supportive measures. Decorative pieces and potteries (cup, plate, jar, toys) have attracted good market prospect and provide highly rewarding to artisans associated with this industry. But of late due to tough competition and free flow ceramic articles from other region in this area and changing test of customers is showing downward trends. State Government support in the frame of skill Moulder/designers has also been withdrawn ceramic industry Chunar, therefore, requires immediate attention for revival of expansion.

If proper support in the form of appropriate technology, marketing infrastuctural facilities is provided to this traditional ceramic industry of Chunar, it will immensely help in providing employment to unemployed youth of this region besides earning substantial revenue for Government exchequer.

The cluster of pottery industries existed in Chunar since time of Mughal period when artisans living here were mostly engaged in building fronts etc using terracotta. The famous fort of Chunar built during the period of Qutubuddin Aibak, was built by these artisans who used this skill. With passage of time, these artisans who transferred their skills from one generation to another started producing sculptures/pottery. In the beginning of the 18th century these artisans introduced the work of glazing the pottery were which added glow and shine to their products. All these times, the clay used for this purpose was Gangatic clay which is readily available all the times as Chunar is situated right on the banks of .

Keeping in view the number of artisans in this area, U.P. Government set up a U.P. State Pottery Centre in 1953 for the development of pottery Clusters in Chunar. But with passage of time, now about 75% of these artisans are engaged in sculpture making using plaster of paris as raw material.

1.1.1. DEFINING THE PRODUCT

Chalking out subtle differences In India the Pottery Industries are located in the State namely Gujarat, West and . Thangarh in Gujarat is famous for glazing products, West Bengal is famous for flooring tiles and sanitary wares and in Uttar Pradesh, four major clusters of ceramic products, such as, Khurja for domestic items, Chinhat (Lucknow) for domestic items, Nizamabad (Azamgarh) for decorative pieces and Chunar ceramic products are different from other area. Glazing on terracotta products are exclusively done only at Chunar traditionally.

Broad Product Grouping

In Chunar (Mirzapur) Pottery Industry can be classified under the following categories. Glazing on red clay like decorative pieces, toys, jars, etc. China clay products like toys, cups, plates, jars, etc. Bone china products, such as, cups, plates, dinner sets, etc. Plaster of paris products like statue of God and Goddess, decorative pieces, etc.

Throughout the exact number of products manufactured in Chunar cluster is not known. The products manufactured here only are demand based products.

Global Presence

The pottery products in Chunar finds its presence in the overseas markets. Since 1948 Chunar also emerged on the industrial map of India due to pottery industry. This place is now known for glazing of terracotta. This has come out due to excellent craft ship available in this region in the field of mould making, designing, baking and policing. As the products manufactured here are quite cheap, so economically weaker section of population used these products in abundance. The products are marketed by local traders who are also exporting the products to Nepal and Bangladesh indirectly via middle man.

The Genesis of Development

The development of pottery industry in Chunar existed before the independence. After the independence State Government set up the Pottery Development Centre. Through the Centre the State Government is providing sheds, raw material and quality testing facilities to the artisans. Due to these facilities new entrepreneurs started manufacturing china clay products and about 50 units emerged in this area. To cater the consumers demand these entrepreneurs/artisans are using plaster of paris in their products. In this work investment part is very low. Only rubber mould is required. Most of the artisans diverted in this side and adopted this work. Presently 75% entrepreneurs are using plaster of paris as a raw material and approximate demand of plaster of paris in Chunar is near about 500 trucks per annum. The only draw back is this that to market these products only one-month period prior to Deepawali are available to them. In the side of red clay and china clay product getting whole year market. Red clay work is based of Chunar pottery. Presently 7 units are engaged in this work and most of them are having traditional system of work.

China clay products are developed by State Pottery Centre. The State Pottery Centre provide raw material, workshop facilities, furnace facility, testing facility and design mould facility to the artisans. 50 units have started their manufacturing work set up by the State Pottery Centre. But, presently State Government stopped the commercial budget and diverted staff to another place due to his policy. The dependent units are facing problems in getting raw materials from the State Pottery Centre and due to this reason 20 units have closed their works. Now, two units started manufacturing bone china products and they require improvement in their finished products.

State Government developed sheds in pottery centre and Industrial Estate at Chunar and these sheds and plots are allotted to the entrepreneurs/artisans. In the Industrial Estate most of the units are non- functioning. The basic requirement is that the State Government may cancel the allotment of non- functioning units and re-allot the same to local potters.

1.1.2. Defining the various sub-activities

Chunar ceramics activities may be classified in three major group: Red clay products China clay products Plaster of Paris products Bone China Products

The manufacturing process of each group are different than other.

Red Clay Product Process Mixing clay manually R Casting R Baking R Glazing R Baking R Painting and Finishing

China Clay Product Process Mixing in Ball Mill R Casting R Dry & Washing R Glazing R Baking R Painting R Finishing & Packing

Plaster of Paris Product Process Water Mixing Manually R Casting R Finishing R Painting R Packaging

Bone China Unit Mixing

Grinding

Filtering on Screen

Casting

Dried

Biscuit Firing

Glazing

Dried

Glossed Firing

Decoration

Transfer Firing

Finishing

1.1.3. Current Out Put

The economy of Chunar is based on cement factories, stone mines and ceramic industries. Presently cement factory are closed since last 8 years and stone chips mines work are also had sluggish growth due to government policies. So the all people those who are engaged in above work diverted in plaster of paris work. At present 70-75% persons are adopting plaster of paris work and rest 20% china clay and 5% are doing red clay work. The reason for popularity of plaster of paris, is due to easy manufacturing process system and no sales tax on this item. Total turn over of the cluster is approximately 3 crores per year. Nearly 10000 persons are engaged in pottery work directly and indirectly.

1.2 Geographical location

Chunar situated on the bank of holy river Ganga which finds mention even in the pages of history and literature due to strategic geographically situated sturdy fort and mystical stories associated with it. It is at an equal distance from city and Mirzapur and well connected by rail, road and water ways. It is situated on - main line as a junction station and 130 kilometer away from Allahabad. Chunar is one of the tehsil of Mirzapur.

Availability of Raw Materials

Raw material used in ceramic industry at Chunar is collected from different places. In the red clay product, raw material used by the potter is clay. It is very easily available at the bank of Ganga and local ponds. China clay used by the pottery, come from Chandia, District Umaria, M.P., Rajmahal from Bihar and Tori from Bihar. Plaster of paris is being purchased from Bikaner (Rajasthan). In the ceramic industry different types of chemical are used by potters and they are purchasing chemical on high rates due to working capital problem and bulk purchasing. Mostly they purchase raw material on credit base and after the sale of products they return the money.

Skill Man power availability

Skill workers are also easily available in this cluster because low level of agricultural development and non-availability of alternative occupations in this area. The people are learning the skill of pottery manufacturing work in very easy way. The cost of employing labour is also on nominal rates.

Flexible Specialization

Here the pottery skill is very strong. They had developed their own design and product. They have able to watch the public demand and given to him as per requirement of consumer. A lot of product range is available in Chunar Pottery market.

Entrepreneurship

In the Eastern Uttar Pradesh the entrepreneurship is very poor and risk-taking attitude of the local people is negligible. The same condition in this cluster is also available. Only reason to run this cluster is that no alternative job is available here. Due to this reason the local people have adopted the ceramic work as main job.

Transportation Facility

Chunar is situated on main Delhi –Howrah railway line and well connected by road, but there is no transporter in this Tehsil. If the entrepreneur or traders require the facility of transportation it is taken by neighboring Varanasi district. Small Entrepreneurs are here and not interlinked, so they are facing lot of problems. Previously Cement and Stone chips loaded unloaded trucks provided cheaper transport facility. Presently this work is totally closed and no alternative source is available.

Patronage from Government of Uttar Pradesh

The Industry Department of Uttar Pradesh develop here Government Pottery Development Centre and through the Central Government provided shed, material and furnace facility to local potters and the

Government also developed here Industrial Estate at Chunar. In this Industrial Estate Government provided land, sheds, road, electricity and water facility to entrepreneurs.

1.3 Core Cluster Actors

Pottery Industries- main stay of chunar

The Economy of Chunar is based on Pottery Industry. The Pottery items covered market of Eastern part of India and Central Part of India. Due to non available of market consortia the potters of Chunar are not getting enough price of products but the production of pottery items have increased day by day. During 2002-03 around Rupees Three corers business has been done by the potters. Most of the potters have diverted the work from red clay and china clay to Plaster of Paris.

Structure of Industry

The players of pottery cluster can be categorized as under: 1 Red clay unit (Terracotta Work) The clay of terracotta is obtained either form the bank of ganga of local ponds which is then mixed with Geru (Terracotta) keeping in mind that the granules of clay are very fine and there are no thick granules. After that the final shape of the objects are given either by the pottery wheel or by using dies. Then they are either sun baked and then heated in the Deshi oven in temperature of 700 degree Centigrade or above. This product is referred as a Terracotta. The 50% china clay and 50% Flesfar mixed liquid lapping on the Terracotta. After lapping again dried in the sun. This work is known as glazing work. This product is again baked in the deshi furnace on 750 to 800 degree Celsius temperature. The size of the furnace is 4”x6”x5” in square shape. The glaze is prepared by mixing glass mesh 50% Borex 49% and red clay 1% about 20 hours in ball mill. For getting different colour the potters use different type of chemical like manganese oxide, iron oxide, copper oxide, chromium oxide and cobalt oxide.

2 China Clay Unit China Clay is found in two forms one in big crystal and second is powder form. Firstly the china clay stone is crushed in ja-crusher or manually and get in small size. After that the Powder is brought in Ball mill in the ratio of 40 liter water for 100 Kg china clay which is mixed for 08 hours. After mixing the china clay in Ball mill the mixed liquid are given final shape of product by using dies and jigger jali. If the product is developed in jigger jali or chalk the water is removed from the mixed clay.

Casted product is then cleaned by water and cloth. After cleaning glazing work is done on the product. Glazed prepared by china clay quarz, felsfar and other chemical are mixed in ball mill for about 100 hours. After glazing the product is dried in sun in open place. After drying the product is placed in sagger safely and sagger is then shifted in furnace for baking. The product

is baked in oven for 36 hours in the temperature of 1120 degree Celsius. After baking cleaning and painting work is done on product and it is ready for sale.

3 Plaster of Paris product In the present time plaster of Paris is the main work of Chunar. This work has provided more work to local entrepreneur. Easy and mannual process system is the popularity of this work, as no investment is required in plant and machinery. In this work fixed investment of capital is very low.

Firstly plaster of Paris liquid is prepared in tubs or buckets. The prepared liquid is put in rubber moulds. After 45 or 50 minutes cast items are removed from mould and dried in open area. Dried item is well cleaned and then painted by brush or spray and there after the product is ready for sale. Presently about 200 units are functioning in this area.

4. Bone china Unit Crushed Calcide Quarze, Phelisphor and Bone ash are grinded at 250 mes to 300 mes in Ball Mill. After grinding it is filtered and passed over the Magnetic separator. While passing over the Magnetic separator iron particles are removed from the prepared liquid. After mixing water as per requirement it is blunged in the high speed blunger for 5 hours, and again passed through the Magnetic separator and is kept in agitator. Then shifted in filter press. The product is gained in the form of cake from the filter press by using Jigger Jali or Slip Casting. After drying the product biscuit-firing work is done at 1200 degree centigrade. After biscuit firing the product is glazed for shining and again it is Glossed Fired in Shuttle furnace. After Glossed Firing Gold decoration and paper decoration work is done on the product and again it is transferred fired at 650 degree Celsius. The product is now ready for sale.

The Indian Standard Bureau has specified for Bone China Crockery Standard IS: 6988-1973.

5 Mould Unit It is basic work of pottery industry and 5 to 6 moulders are available here. As per the unit requirement moulders develop the pattern in Plaster of Paris and through the patterns they have made dies and provided it to the unit.

6 Sagger Making It is a type of box used in furnace for baking the product. It is made by the unit himself by mixing 50% old sagger powder and 50% fire clay.

Backward and Forward linkage

One of the most important attribute of Chunar Pottery Cluster is the existence of the backward and forward linkage. Adjoining Chunar Pottery is the most popular work in village area. The villagers doing pottery work in spare time and unfinished products are supplied to local organised unit, but the main point is here that there is no contact between them. They are totally free to supply anywhere. So the basic requirement is to develop linkage between them. The result will be better for both side. The Raw Material are working independently and the entrepreneurs are purchasing raw material independently from the raw material suppliers, whereas the entrepreneurs are not having any linkage among themselves due to which the raw material suppliers are selling raw material at different rates to different entrepreneurs. The same thing is prevailing in the market due to which the entrepreneurs are not getting the right price for their products.

1.4 Other Cluster Actors a) Institution having direct stake on the cluster-

AASHRIT PATRAKAR SAMITI, CHUNAR

This Association is developed by the dependent of the Governemnt Pottery Centre. They are fully dependent on the Centre, Centre provided Raw Material on credit base, workshop facility on subsidized rate, Furnace on hours base. Presently 30 units are functioning under this association. Sri Akhil Parsuram Joshi is the President of this Association. Due to non functioning of the Center those units are facing lot of problems. They want to start Government Pottery Center immediately and the matter is pending at State Sectrariate, Lucknow.

CHUNAR POTTERY ASSOCIATION, CHUNAR

This Association is framed by rest of China Clay Unit those are not dependent upon Government Pottery Centre. There are seven members and working in good condition. They are having their own shed, furnace and ball mill. Mr. Vijay Kumar Verma, President and Sri Ajai Ram Joshi is Secretary of this Association. They are working independently and there is no proper linkage among the members.

BONE CHINA UNIT.

Two Bones China based Units are functioning here, one is M/s Anand Ceramics owner. Sri Anand Prakash Agrawal and second is M/s Oriental Ceramics run by Sri Anand Prakash Joshi. They are working independently having no linkage between them.

MANAV SEVA SAMITI CHUNAR

Sri G.P.Upadhaya and Smt. Renu Srivastava and other young members are framed in the field of social work in non governmental organization named as Manav Seva Samiti. This NGO worked in different field for upgradation of weaker section. They adopted pottery activities as a measure of economy upgradation of weaker section. In this field they are providing furnace, raw materials, godown facility to the weaker section.

UNNAYAN SANSTHAN, CHUNAR

This is social organization for women name UNNAYAN SANSTHAN situated in Chunar, Mirzapur based on non-profitable and non- political. This organization arrange to create opportunities to work for women development issues from the last 12 years. The Unnayan has been engaged in implementing the various types of project and programme covering the entire development activities like Education, Health, Rural Energy, Capacity Building and Income-generating etc. This organization was formed in May, 1991 by a Group of Seven Young people from different background having a common object to uplift the economic and social status of women from the weaker society/section residing in an around the area. It is a registered body under the Society Act-1860 and also allotted with FCRA No. 136590029.

Economic empowerment is a crucial port of women’s development Unnayan promotes entire entrepreneurial activities and value- added goods services and professional careers to empower women from poor areas. Unnayan aim to enhance traditional skills as well as new and adapt them to today’s market with contemporary design input and marketing, some activities are: i. China clay pottery ii. Red clay pottery iii. Woolen durry weaving iv. Hand Knotted Carpet Weaving v. Idol making (Plaster of Paris) vi. Silk Weaving.

In the field of China Clay Pottery the Unnayan Sansthan is providing training to 50 women under NABARD Scheme and doll making (Plaster of Paris) they have provided training to 49 women under DWCRA scheme. They have also provided shed, furnace and godown facility to the trainees engaged in production work.

b) Institutions having indirect relations with the Cluster

GOVERNMENT POTTERY DEVELOPMENT CENTRE

Government of Uttar Pradesh has set up a common facility center at Chunar under the auspices of state Directorate of Industries. This Centre is developed in 9.06 Bigha land. In this land 4.0 Bigha is covered and rest is5.068 Bigha is open. Government has also developed 5 sheds of 40’x25’ and shed is allotted to entrepreneurs @ Rs. 480/- per month. In the year 1996 State Government has stopped the commercial budget and in the year 2000 the Centre was locked by the orders of Labour court. The Centre reopened on 2002, but the staff has been deployed at other places.\ and till date the Government has not provided Commercial Budget, only the furnace installed in open area the dependent units are availing furnace facility on own expenses.

Initially the Centre was equipped with workshop and following facilities: 1 Ball Mill of existing size 04 nos. 2 Water tank and mixing plant 01 no. 3 Filter Press to remove moisture 01 no. 4 Pug mill 01 no. 5 Tool and accessories as per size

In addition to above the common facility centre was also provided with baking facility for moulded ceramic product and for which for set up of cold fire down drought furnace were created (presently one is operative) The centre was controlled by Ceramist.

CENTRAL GLASS AND CERAMICS RESEARCH INSTITUTE, KOLKATTA, BRANCH AT KHURJA

The Central Glass and Cermaics Research Institute is working in the field of Research and Technological Development of Ceramic Industry in our country. They are doing lot of work in Ceramic industry located in West Bengal and Khurja (Bulendshar), Chinhat (Lucknow) (U.P.).

Unfortunately CGCRI never worked in Chunar but their R&D facility can definitely be utilized to solve the technical problems of the cluster. What if requires in presenting the problem of industry to the management in CGCRI and convincing the Government to a branch of CGCRI at Chunar.

GLASS AND CREMAICS INSTITUTE OF TECHNOLOGY, BHU, VARANASI.

Glass and Cremaic Institute, BHU, Varanasi is working in the field of education and R&D. They have provided B.Tech and M.Tech degree to the students and lot of R&D work are done by the teacher and students. But they never supported the Chunar Ceramic Industry. The need of the hour is that the Institute should give technological support to Chunar Cermic Industry and guide them with latest technology.

EXPORT PROMOTION COUNCIL, BHADHOI

Export Promotion Council, set up at Bhadhoi under the sponsor ship of Ministry of Commerce, Government of India. The main objective of the Council is the promotion of Export.

There is an immense need to develop BDS in chunar and all the association has to network and play a pro-active role in order to insure growth and sustainability of the Cluster.

1.5 Institutional support

SMALL INDUSTRIES SERVICE INSTITUTE, NAINI, ALLAHABAD

This is a Central Government Organisation coming under the control of the Development Commissioner, Small Scale Industries, and in turn under the Ministry of Small Scale Industry,

Government of India. This is the body, which disseminates information about the Central Governments policies and schemes and also conducts training programmes in various disciplines. Under the aegis of UNIDO, this organization also has a subcontracting exhange for vendors. This organization has been mandated to play a role as a cluster development agency in the Pottery cluster at Chunar. It can cater the needs of the industries in skill up gradation programme. It lso offers consultancy services on ISO 9000 certification at competitive rate. It also recommends to DC(SSI) for reimbursement scheme for ISO certified industries.

NATIONAL SMALL INDUSTRIES CORPORATION

This is a Government of India Agency, which had been set up to promote, aid and foster the growth of Small industries in the country. The organization is involved in Hire Purchase and leasing schemes and also has a Raw Material Assistance Scheme for supplementing the availability of raw materials to a large number of units. Hire purchase scheme can be utilized in the cluster for technology up gradation.

SMALL INDUSTRY DEVELOPMENT BANK OF INDIA

This is a financial Institution had been set up with the objective of assisting the development of the Small Scale Sector in India. This Institution has a number of Schemes for the SSI Sector of which CREDIT LINKED CAPITAL SUBSIDY SCHEMES. This Institutions also assists in many developmental activities especially on HRD front and will has a major role to play in for the implementation of the cluster approach in the pottery sector at Chunar.

DISTRICT INDUSTRIES CENTRE, MIRZAPUR

This Department deals with the Small Scale Industries in the State, and apart from the regular development work done by the Department like registering the SSI units in the District, it also implements a number of Government Incentive Schemes like PMRY and also provide develop sheds and land to entrepreneurs.

KVIC

KVIC is giving encouragement to the traditional artisian and employment in the rural areas. The implementation of KVIC programmes in the district are carried by KVIB, they are running Margin Money Scheme and Interest Subsidy Scheme.

UTTAR PRADESH FINANCIAL CORPORATION

It is a Government body which provides term loans to entrepreneurs as per norms.

NABARD

It is a financial institution which provides loans to weaker section of the society through commercial banks. In Chunar they have work for the development of pottery industry in collaboration with the Unnayan Sansthan.

NATIONALISED BANK

In Chunar State Bank of India, Allahabad Bank and Bank of Baroda are functioning and are providing term loan and working capital to the entrepreneurs as per norms for pottery industries.

1.6 Present Cluster Map:

In the present cluster map there is no link among cluster actors they are doing their job independently and facing lot of problem.

Institutional support and Government Department Coordination for Chunar cluster is nil. BDS are not functioning in the cluster. Open market is available to all potters and marketing network is zero.

SISI DIC KVIC CGCR BHU NSIC SIDBI

Financial

Out side Institution market

Local 7 Red Plaster of Govt. Pottery market clay unit Paris unit Development 100 Nos. Centre

30 No. 2 Bone China clay China Unit unit

Raw material Raw material EPC suppliers suppliers

02 VALUE CHAIN ANALYSIS (IN %)

Red Clay Clay preparation Baking Glazing Baking 15% 30% 20% 25%

Painting and Packing

10%

China Clay Clay Preparation Casting and drying 10% 5%

Glazing Baking Finishing and Packing 20% 60% 5%

Plaster of Preparation of Liquid Casting Paris 65% 10%

Finishing & Painting Packing 20% 5%

Raw Material Casting 5% Bone China Unit preparation 15%

Biscuit Firing 25% Glazing 10%

Gloss Firing 20%

Gold Decoration Transfer Firing Packing 5% 10% 10%

03 PROBLEMS

The Following section present an analysis of Business Operation for the Pottery Cluster. The analysis is built on the following factors viz; 1 Raw Material 2 Furnace 3 Marketing 4 Background of the Entrepreneur 5 Finance and working capital 6 Man power requirement 7 Infrastructure facility 8 Closed Pottery Centre 9 Poor Transportation Facility 10 Business Development Services 11 Unified Association

Raw Material

The local Ceramists face Raw Material problem due to Non-availability of Government Depot and stockiest, therefore Raw Material comes from Khurja. The major Raw material used by Ceramists i.e., China Clay Chemicals, Plaster of Paris and different type of chemicals are used in Ceramic Industry, and are brought as per their requirement, for which they have to pay heavy amount.

The China Clay is transported from Rajmahal, Bihar to Khurja, whereas Rajmahal, Bihar is nearer to Chunar. Due to non-availability of stockiest at Chunar the pottery industry is facing lot of problem. M/s Kanodia Chemicals, Renukoot, Sonbhadra manufactures different type to chemicals which are used in pottery industry, whereas Sonbhadra is the adjoining district of Chunar, but all the chemical comes from Kanpur or Varanasi due to non-availability of dealer.

Near about 500 trucks of Plaster of Paris is consumed by Ceramists in a year. Plaster of Paris is purchased from Bikaner by local money holders and they are providing to Ceramists on credit base and charging high price.

Furnace

Presently Coal Furnace is used by Chunar Potters. It is a very old and traditional method. So they are not getting quality product and getting high price of coal. In this side major changes is required if the baking process is changed by oil or gas system. The total product quality is improved and production capacity is also increased.

Marketing

No marketing facility is available here, only seasonal market is available in the month of September,- October and March-April. During this period big Industrial Fair is organised at Chunar which attracts buyers from entire country. The producer sells the products at a very low price to the purchaser and these purchasers sell these products at high price in their own area. Marketing network is the basic need of Chunar Potters. By the network they have sold the product outside Chunar and got more benefited.

Back Ground of Entrepreneur

A majority of Cermic Industry is governed by family members. The owner and other family members are the Manager, Operator, Marketer, Technician. There is hardly any qualified person recruited from outside. As a result no fresh idea come up and the process of manufacture remains traditional. One needs to understand that there are several functional area in an enterprise, where qualified experienced persons are required. The level of awareness of the entrepreneurs especially in technical and marketing areas is not high due to low level of education and lack of knowledge of English.

Finance and Working Capital

Finance is the key problem of Chunar Cluster. Three Nationalized Banking are working i.e., State Bank of India, Bank of Baroda, and Allahabad Bank, who are not cop orating with the ceramists. They say your work is a seasonal work, for which as per Bank norms they cannot provide working capital. In this situation they take money from local money lenders @ 5% per month interest (60%per annum). The money lenders exploit these poor ceramists. Bank cooperation is the main requirement for Chunar Ceramic Industries in respect of working capital.

Manpower

Traditional manpower is available here. Shortage of Technocrats, the improvement of ceramic industry like production, baking, packing, marketing and finance side needs improvement in Chunar Cluster.If the retired technocrats or technical NGOs will be providing services to Chunar Potteries result will be naturally high.

Infrastructural Facility

Two Government Industrial Estate are developed by State Government one is Chunar Pottery Centre and second is Industrial Estate. All the sheds and land has been allotted to prospective entrepreneurs. Chunar Ceramists are demanding sheds and plots for industrial activities. If the Government Authorities re-allot the closed sheds and develop new sheds in pottery centre the ceramists will be benefited.

Government Pottery Development Centre

State Government stopped the commercial budget in 1996 and deployed the staff at other places. Units which were dependent on the Government Pottery Development Centre are facing lot of problem. Previously they have taken quality Raw Material on Credit base, workshop facility on job based and testing facility from the centre. Are now facing problem due to which some of the units have been closed.

Dependent units are regularly demanding from the Government for reopening the Pottery Development Centre and release the commercial budget, and 5.098 Bigha open land is available at the centre . They have also demanded that the Centre should develop 53 shopping centre and new sheds in 5.098 Bigha open area.

TRANSPORTATION FACILITY

In this cluster tiny industry is set up by entrepreneur, hence the requirement is also less. They are not capable to purchase full truck or railway wagons. Local road transport facility is not available in this area, if anybody requires this facility they will arrange from Varanasi.

Previously the Chunar Cement factory and stone mine trucks were providing, transport facility to Ceramics Industry in cheaper rate. Presently the Chunar Cement Factory and stone mines work has been winded up by the Government due to which the ceramic industry is facing transportation problem. The major requirement of the ceramic industry is transportation network.

BUSINESS DEVELOPMENT SERVICES

The Business Development Services has not grown in Chunar as it has been in other Industrial Cluster. There is no technical training institution, no R&D laboratory, no management institution, no testing facility, no marketing expertise, no design development institute in Chunar. Probably the requirement of the cluster is properly projected, therefore, there is a need to have a networking and consortium among the actors in the cluster.

ASSOCIATION

In this cluster no common association is functioning for all cluster actor. Due to non functioning of association they are not united and are functioning independently and are facing problem at every step. Only one association (dependent unit of pottery centre) is functioning whose function is limited for dependent unit. The major requirement is to form a common association for all cluster actors for constructive work.

04 VISION OF THE CLUSTER

As we are well aware of this fact that pottery cluster in the place like thangarh (Gujrat), Jadavpur (W.Bengal), Khurja in Bulandshar, Chinnat (Lucknow in U.P.) are of world class. This is only because the technique adopted in this cluster are quite modern and the furnace used in these places are oil based instead of coal based which produces inferior quality products.

Hence, in the first place to improve in quality of Pottery products, these furnaces have been changed, hence the financial institutions/banks/KVIC have to come forward to provide active financial support to these articians.

Secondly these traditional artisans/pottters may also physically visit these units to see the manufacturing process themselves.

Thirdly various Entrepreneur Development Programmes/Management Programme based on Financial/Marketing may be organized which may go a long way helping the artisans.

Keeping the above points in view it is hoped that projected targets are fulfilled in the coming five years.

05 STRATEGY

The Pottery cluster in Chunar has enough growth potential strategic intervention is made in certain key areas. The clustering phenomena is a natural process and it should be realistic in terms in countering various problems in the past.

The key areas in which the strategic intervention are needed is given below:

- Technological up gradation - Networking among cluster actors - Developing BDS - Liberalize Government rules and regulations

These are discussed in detail in the Action Plan, moreover for making the cluster development initiatives sustainable in the long run it is imperative to insure capacity building of the cluster actors. An outside organization intervention cannot produce desired result, especially in the long unless efforts are made for capacity building for the cluster actors. The cluster actors should relies the need to change (in the changing scenario) and initiate action in order to solve their problems and making themselves competitive. What is important here is that the process of change should be nationalized whether than imposed.

06 FUTURE CLUSTER MAP

SISI DIC KVIC CGCR BHU NSIC SIDBI

Financial

Institution

Marketing 7 Red Plaster of Govt. Pottery Consortia clay unit Paris unit Development 100 Nos. Centre

30 No. 2 Bone BDS China clay China Unit unit

Raw material Raw material EPC consortia consortia

07 SWOT ANALYSIS

The SWOT Analysis is based upon the interactions during the interviews and the insights developed thereon are highlighted below:

STRENGTH Easy availability of trained and skilled man power. Easy availability of Raw Material (Terracotta) Strong presence in domestic market. Fixed capital investment is nil Traditional artisans. Easy process system.

WEAKNESS Low Level of trust.

Low level of labour productivity Quality is poor and rejection rate are high Absence of sufficient testing facility Weak linkage among actors. No commonality of goals. Technology up gradation nil. Nil research and development efforts. Inadequate flow of market information Size of firm is very small Scattered production. High rate of interest for loans Poor working conditions No effective agency to help for export market High Tax and duties structure.

OPPORTUNITIES Growing domestic and international market Product Diversification Abundant scope to cater to foreign majors setting up shop in India Ability cater to small batch sizes. Product linked with religious believe

THREATS Slow incorporation of quality Implementation of WTO Government Policies Plastic industries

08 ACTION PLAN

1 Technology Up gradation

There is no change in technology of manufacturing process since beginning and the same traditional process is adopted by the potters. The new idea of “oil furnace” has been developed in baking side which has been adopted by few entrepreneurs. Major change in required in Ball mill, casting, glazing and baking field due to which the potters are not getting quality product and the cost is also too high.

In order to eradicate these problem there is an urgent need to start closed pottery centre and furnace of the centre should be replaced by the latest technology say as “oil furnace”. The above technology will help in minimizing rejection rate improving productivity and quality, saving of labour, time and making the cluster competitive.

2 Networking among cluster actors

The networking among cluster actors are very limited. Moreover the role of the association ends organizing periodical meetings. Only when the entrepreneurs face pressing problems, they do interact in group.

A strong network has to be created among cluster actors so that they can jointly solve each other problem, pressurize Government in liberalizing the rules and regulations. They even can jointly market their products in the global market in order to compete with “the economies-of-scale” approach of Chinese manufacturers. The industry associations need to be made proactive and networking has to be strengthened. This can be taken up as a part of capacity building exercise. The benefits of networking have to be explained to them.

3 Developing BDS

Growth of Business Development Services especially in technical and marketing areas, are very limited. There is no technical training institute, no R&D and testing laboratory. As a result, the technology and the process of manufacturing has remained unchanged. Moreover, there is no consultant/experts who can guide them in international marketing, export procedures and documentation, etc. Whatever the entrepreneurs learnt, they learnt it by doing it or from other entrepreneurs.

Therefore, Business Development Services have to be developed in the cluster. This will be an effective instrument of ensuing sustainability of the desired initiative.

4 Liberalizing Government rules and regulations:

The entrepreneurs are finding it difficult to comply with the rules and regulations of several Government departments. Most of their time is spent in filling up forms and submitting papers as per their requirements.

Therefore, Government rules and regulations have to be liberalized. The role of the Government department should be a facilitator rather than regulator. An awareness workshop for the Government officials in the form of “department-enterprise interface” can be organised.

5 Developing Markets

Plaster of Paris work of Chunar is in growing age, if the entrepreneur of Chunar entered in the Maharashtra and West Bengal market on the occassion of Ganesh Puja and Sarswati Puja there is a huge demand of idols during these festivals.

09 PROPOSED ACTIVITIES FOR CHUNAR CLUSTER IS DESIGNED TO MEET THE GOAL AND BROAD OUT LINE OF THE PLAN IS AS UNDER

Time Amount S.No. Activities Period Required (Rs.) 01 Awareness Programme on 4/2004 10,000/- Cluster Development (02 days) 02 Study Visit at Khurja 5/2004 50,000/- (only for Clay unit 05 days) 03 Quality Upgradation 5 /2004 25,000/- Programme Coloboration with C.G.C.R.I., Khurja (05 days) 04 Skilled Development 6-2004 50,000/- Programme (Two Weeks) 05 One Month EDP on Glass 6 or 7/2004 35,000/- Ceramics (for new entrepreneurs) 06 Working Capital, Management 7/2004 15,000/- Programme with Local Finance Institution (10 days) 07 Buyer Seller Meet 8/2004 50,000/- 08 Marketing Management 8 or 9/2004 15,000/- Programme on Market Development (10 days) 09 Packaging of Pottery Product 11 or 15,000/- (03 days) 12/2004 10 How to form a Consortia 1 & 2/2005 15,000/- Collaboration with local N.G.O. & co-operative department (05 days) 11 Seminars on Quality control 4 & 5/2005 10,000/- Association with Glass & Ceramics Department BHU (3 days) 12 Study Visit to Develop Cluster 6/2005 50,000/- 13 Waste Minimization and 6 & 7/2005 10,000/- pollution control (3 days) 14 Impact of W.T.O. on SSI 8/2005 10,000/- Sector (03 days) 15 How to reduce cost 9/2005 15,000/- 16 Energy Audits in Furnaces (3 10/2005 10,000/- days) 17 Buyer Seller Meet 11/2005 50,000/- 18 Common Marketing Office on 11 & 15,000/- Consortia (5 days) 12/2005

19 Production Management 1 & 2/2006 15,000/- Raw Material Management & Labour Management (5 days) 20 How to enter in International 4 & 5/2006 15,000/- Market (5 days) 21 Developing network among 6 & 7/2006 15,000/- cluster actor (5 days) 22 Buyer Seller Meet 10/2006 50,000/- 23 Marketing Management on 10 & 15,000/- Export (5 days) 11/2006 24 Buyer Seller Meet 1 or 2 /2007 50,000/-

10 BUDGET REQUIREMENT FOR CLUSTER DEVELOPMENT WORK AT CHUNAR

S.No. Year Items Amount (Rs.) 01 2004-05 Different programme shown in 2,80,000/- Action Plan 02 - do - Computer, Computer stationary, 1,50,000/- Internet, Telephone connection 03 - do - Strengthening of Association 1,20,000/- 04 - do- T.A., D.A. for SISI officers 3,00,000/- 05 - do - Office Expenses 2,00,000/- 06 2005-06 Estimated 7,00,000/- 07 2006-07 Estimated 7,50,000/-

LIST OF RED CLAY UNIT AT CHUNAR

01 M/S Baccha Babu Prajapati, Teri Neem, Chunar, Mirzapur 02 M/s Shyam Ji Verma, Nakkhas Chunar, Mirzapur 03 M/s Somnath Kannu Red Clay works Bharpur, Chunar, Mirzapur 04 M/s Iqbal Red Clay Works, Bharpur, Chunar, Mirzapur 05 M/s Riyaz Red Clay works, Bharpur, Chunar, Mirzapur 06 M/s Bacchu Lal Shanker Red Clay works Bana road, Bharpur, Chunar, Mirzapur 07 M/s Somnath Prajapati Red Clay Works, Chera Ka Para, Janai Road, Chunar, Mirzapur

LIST OF PLASTER OF PARIS UNITS

01 Santosh Prajapati Dargha Saharif, Chunar 02 M/s Vijay Murti Kala Kendra, Dargha Saharif, Chunar 03 M/s Sita Ram Om Prakash Murti Kala Mandir, Belvir, Chunar. 04 M/s Prajapati Murti Kala Mandir, Station Road, Chunar. 05 M/s Durgesh Murti Kala Mandir Station Road , Chunar 06 M/s Mahendra Prasad Murti Kala Kendra, Station Road , Chunar 07 M/s Patel Pottery work, Manufacturer of Plaster of Paris Idols. Station Road , Chunar 08 M/s Khurja Murti Kala Kendra Station Road , Chunar 09 M/s Master Murti Kala Kendra, Station Road , Chunar 10 M/s Ajit Murti Kala Kendra, Station Road , Chunar 11 M/s Dev Murti Kala Kendra, Bharpur, Chunar 12 M/s Ram singh Murti Kala Kendra, Bharpur, Chunar 13 M/s Devkashi Murti Kala Kendra, Station Road , Chunar 14 M/s Santosh Kumar Murti Kala Kendra, Usmanpur, Station Road, Chunar. 15 M/s Ganga Devi Murti Kala Kendra, Station Road , Chunar 16 M/s Santosh Kurti Kala Kendra, Station Road , Chunar 17 M/s Rakesh Murti Kala Kendra, Station Road , Chunar 18 M/s Shalu Murti Kala Kendra, Station Road , Chunar 19 M/s Ram Singh Murti Kala Kendra, Acharyaji Road, Chunar. 20 M/s Mannu Devi Murti Kala Kendra, Station Road , Chunar 21 M/s Jai Das Murti Kala Mandir, Acharyaji Road, Chunar. 22 M/s Hira Murti Kala Kendra, Acharyaji Road, Chunar. 23 M/s Brij Mohan Murti Kala Kendra,

Station Road , Chunar 24 M/s Girdhari Murti Kala Kendra, Station Road , Chunar 25 M/s Fancy Murti Kala Kendra Station Road , Chunar 26 M/s Mohan Murti Kala Kendra Station Road , Chunar 27 M/s Naresh Murti Kala Kendra Station Road , Chunar 28 M/s Babu Lal Kala Kendra, Station Road , Chunar 29 M/s Shiv Murti Kala Kendra Station Road , Chunar 30 M/s Jagdish Murti Kala Mandir, Station Road , Chunar 31 M/s Ritesh Murti Kala Kendra, Station Road , Chunar 32 M/s Mithai Lal Murti Kala Kendra Dargha Sharif, Chunar. 33 M/s Verma Murti Kala Kendra, Station Road , Chunar 34 M/s Narayan Murti Kala Kendra Station Road , Chunar 35 M/s Bharat Murti Kala Kendra, Station Road , Chunar 36 M/s Phool Chandra Murti Kala Kendra Station Road , Chunar 37 M/s Vijay Bhadur Murti Kala Kendra, Station Road , Chunar

LIST OF CHINA CLAY UNIT

S.No. Name of the Unit Proprietor 01 M/s Sarita Pottery Works, Sri Siddh Nath Prajapati Station Road , Chunar 02 M/s Bharat Pottery Works Sri Pardeshi Prajapati Station Road , Chunar 03 M/s Chunar Pottery Si Akhil Joshi Shed No. 3, Pottery Centre, Chunar 04 M/s Girdhari Pottery Works, Sri Girdhari Lal Station Road , Chunar 05 M/s Hind Pottery Works, Sri Mannu Yadav Station Road , Chunar 06 M/s Durgesh Pottery, Sri Durgesh Kumar Shed No. 2, Pottery Centre, Chunar 07 M/s Raj Pottery Works, Sri Rama Nand Prajapati Station Road , Chunar 08 M/sBabu Pottery Works, Sri Sultan Babu

Station Road , Chunar 09 M/s Munnuwar Pottery Works, Sri Munnuwar Ali Station Road , Chunar 10 M/s Om Pottery Works, Sri Chandra Prakash Station Road , Chunar 11 M/s Gopal Potter Works, Sri Videshi Prajapati Shed No. 4 Pottery Centre, Chunar 12 M/s Mahendra Pottery Works, Sri Mahendra Prasad Station Road , Chunar 13 M/s Mazdoor Pottery Works, Sri Lallan Yadav Station Road , Chunar 14 M/s Gupta Pottery Works, Sri Suresh Gupta Station Road , Chunar 15 M/s Vikas Pottery Works, Sri Santosh Kumar Station Road , Chunar 16 M/s Star Pottery Works, Sri Hafiz Ali Station Road , Chunar 17 M/s Patel Pottery Works, Sri Rajendra Prajapati Station Road , Chunar 18 M/s Dhara Pottery Works, Sri Mani Dhara Joshi Station Road , Chunar 19 M/s Shiv Nath Pottery Works, Sri Shiv Nath Prasad Station Road , Chunar 20 M/s Prakash Pottery, Sri Om Prakash Shed No. 1, Pottery Centre, Chunar

LIST OF BONE CHINA UNITS

S.No. Name of Unit Proprietor Name 01 M/s Anand Ceramic Works, Sri Anand Agrawal Chunar 02 M/s Oriental Ceramic Works, Sri Anand Agrawal Chunar