Flag making activity


This is not a usual article: here the Chaitanya client is only an employee. So the article is about the whole business in general.

Ishwar Itagi, 49 years old, is the owner of this flag making business in the village of Garag. His wife is a teacher while their 3 children are students. 

His family started making flags in the year of 1956 with an initial investment of 65 lacs (6, 5 million rupees), and with the support of the KVIC (Khadi and Village and Industries Commission). 

Early on the activity was restricted to only make ISI (Indian Standard Institution, a quality label) marked flag, or flag clothes. But now the same unit is also making khadi  items such as lungis, hankies, towels etc.

They are the only ones making this activity with 2 units in the Garag village, and they also have other units elsewhere : Tadkod, Khanapur, Kotabagi, etc. 

They have an aim of no profit no loss : the goal is to provide employment opportunities to rural people, local ladies including Chaitanya clients, and make the nominal profit to cover its costs. Not earn more profit. 

His employees are at 99% women.

Production steps

The main raw materials are maida, gum, oil and cotton which are supplied by the KVIC and the Chitradurga labour plant. 

The process starts by converting cotton into thread with handloom machine. Then warping, drying and rewinding. Afterward, they make the bobins , then the doles, and finally do the weaving process.

The working hours are from 8am to 6pm, with a lunch break of 1 to 1,5 hours, and the final products are shipped all over India. 

Economics of the activity

Here are presented the daily material costs for each part of the production process:

a)  Thread making : 5 rupees for 1 bundle of 500 meters, and they use 15 of them daily. 15 members are working on it.
b)    Bobin rewinding : 2.70 per bundle, with 25 bundles. This process is done by 3 persons.  
c)    Bobin making : 1.90 rs per bundle times 70 bundles . 4 villagers are needed for it.
d)   Weaving: 13.5 rs per meter * 10 meters. 40 members are working on that part of the production process. 

Which makes a total cost for the raw materials of 75 + 70.2 + 133 + 135 = 413,2 rupees per day.