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What is the News?
Khadi and Village Industries Commission(KVIC) has created a unique business model to empower women Agarbatti artisans in Assam and strengthen the local Agarbatti industry.
What is the model adopted by KVIC?
KVIC has engaged 70 tribal women belonging to 7 self-help groups (SHGs) under the Prime Minister’s Employment Generation Program(PMEGP).
These tribal women were supported to set up their own Agarbatti manufacturing units in Assam.
KVIC has also roped in a business partner that will provide raw material and take back all the Agarbatti produced by these 70 women entrepreneurs by paying labour charges.
Why is this business model unique?
This Agarbatti business model is unique in the sense that these women entrepreneurs will be free from the hassle of selling or marketing their finished goods.
On the other hand, the business partner will enhance his production of Agarbatti without incurring any capital cost on purchasing new machines.
Why was this business model designed?
The model has been designed in wake of the two major decisions – import restriction on Raw Agarbatti and increase in import duty on Bamboo sticks – taken by the Ministry of Commerce and Ministry of Finance respectively to support the local agarbatti industry.
Source: This post is based on the article “KVIC Rolls Out Unique Business Model to Handhold 70 Women Agarbatti Artisans in Assam” published in PIB on 2nd December 2021.