Problems faced by Silverware manufacturing units in Salem city, Tamilnadu

 

 

ABSTRACT:

In developing countries, small scale industries and cottage industries are important for increasing employment opportunities, equal distribution of income, to increase standard of living, developing rural and semi-urban areas. Silver manufacturing units plays a major role in creating employment opportunities for the people especially women. Silverware products and ornaments made in India has a significant export market and also popular throughout the country. Silverware manufacturing units faced problems related to operational patterns and exporting the products. This study focuses on such problems and suggests effective remedies for the welfare of the industry.

 

 

 

INTRODUCTION TO SILVERWARE INDUSTRY:

“Poor man’s gold” is best associated with the precious metal silver, at least with respect to India. It was rather an idiomatic expression introduced by someone who less understood the importance played by silver in society. To this point of view, the volume of silver jewellery consumed is irrespective of economic class or background. The silverware or an article held at home is a symbol of prosperity and use in regular life increases pride and prestige. India is on the margin of a high growth market in the use of silver (Sudheesh, 2016).

 

Jewellery and Silverware:

Silver’s medical properties have been highly appreciated in India for centuries. The metal plays a greater role than simply as a fashion item.

 

The anklets, toe ring or ring irrespective of the economic class of the society, is worn widely due to its medical significance and fashionable designs are indeed just an addition to the medical benefits. The silverware, silver idols and articles market is another key segment that has seen volumes surge in recent times. The rise can be credited to two main factors. The rise in income levels and the second is fall in silver prices which increase the affordability. Despite the price decline it is still a symbol of wealth and prosperity to have a silver artefact displayed at home and office.

 

Silverware demand in India:

Silverware and Jewellery segments consumed 3,100 tonnes last year compared to just 1,333 tonnes in 2005. The jewellery market volumes have increased by 188% while silverware (silverware, articles and the idols market) has risen by 70% over this time frame. Comparing it with global demand, India’s share in the fabrication of silverware has increased from 31% in 2005 to 59% in 2014. Similar was the growth in the jewellery fabrication segment, rising from a global share of 12% to 29% in 2014. On the other hand though, exports in value terms has gained multi-fold due to the rising prices, while in regards to absolute volumes, these have been steady at approximately 200 tonnes. And in case of silverware and related products exports has fallen from $15.4 million in 2005 to $2.63 million last year.

 

Review of Literature:

A literature review is the critical analysis of a part of a published body of knowledge through summing up, classification and comparison of prior research studies and theoretical articles. The aim of literature review is to show that "the writer has studied existing work in the field of insight".

 

In his research paper studied the financial requirements of small industry and growth in the 1990s. The researcher compared the small industry demand for finance in the twenty-first century to the twentieth. He evaluated the structure and growth of small industry in terms of organized and unorganized sector. Data was analyzed by using information/statistics provided by the Small Industries Development Organization. Thus, it was suggested to set up some more financial institutions like Small Industry Technology Finance Corporation and Small Industry development Investment Corporation for the overall development of small industry in India (Balasubrahmanya, 2000).

 

The research paper measured the contribution of small scale industries in India from different perspectives. They studied role played by SSIs in the development of the Indian economy, employment generation and export promotion and so on. Findings revealed that SSIs helped in balanced industrial development and facilitated better utilization of resources. It was also found that annual growth rate of export earning of small scale sector was decreased from 28.10 per cent in 1992-93 to 9.08 per cent in 1999-2000. On the basis of findings, it was suggested that government should provide proper supply of raw materials, timely finance and help in technology up gradation in SSI sector to improve export performance (Anantha, Jayasheela and Vishwanatha, 2004).

 

In this article analyzed the personal and infrastructural problems faced by the small scale entrepreneurs in SIDCO industrial estates of Madurai region. Primary data was collected from 144 small scale entrepreneurs through filling up of questionnaire. The personal problems has been studied in terms of family problems due to the business, lack of awareness of latest technology, deficient managerial skills and lack of awareness 46 about financial assistance schemes. On the other hand, infrastructural problems have been studied in terms of power shortage, transportation problem, scarcity of drinking water, etc. In addition, miscellaneous problems of small scale entrepreneurs have also been studied in terms of problem in availing government subsidies and opinion towards government assistance to SSI. Therefore, it was suggested that awareness programs should be conducted by the government of Tamil Nadu for Small Scale Entrepreneurs to create awareness (Kalyani and Brinda, 2010).

 

STATEMENT OF THE PROBLEM:

Silverware products have a wider scope for export from India. Silverware products have been exporting to other countries, but not up to the mark. It is because of several problems faced by the manufacturers. Manufacturers do not export the products directly. They sell the products to the agents or the persons who involves in exporting silverware products. If the manufacturers export the products directly they enjoy more benefits and it facilitate the silver industry to grow better and faster. This research is an attempt to study and identify the various operational problems and issues in exporting the products. The identification of which may be helpful for the manufacturers to take remedial measures for the problems arises and the growth of exporting silverware products.

 

OBJECTIVES OF THE STUDY:

The following are the broad objectives of the study

1.      To identify and analyze the profile of silverware manufacturing units.

2.      To find out the operational pattern of manufacturing units that produces silverware products.

3.      To analyze the problems of manufacturing units related to exporting of silverware products.

 

RESEARCH METHODOLOGY:

The study carried out by the researcher is descriptive research. The sample size is 50 silverware manufacturing units. The sampling method used in this research is cluster sampling method. The study has used both primary and secondary data. Primary data is collected from the manufacturers of silverware products from various places in Salem city like Shevapet, Gugai and Maniyannur using questionnaire through interview method. The tools used for analysis are descriptive analysis and Garrett ranking method.

 

FINDINGS:

70% of the respondents feel that power cut is very frequent. 62% of the respondents agree that cost of using the generator is very high. 45% of the respondents are highly satisfied towards availing subsidy from the government. 70% of the respondent’s opinion about the price of raw materials is very high. Most of the respondents are highly satisfied towards quality of raw materials, transport facilities. 25% of the respondents are satisfied with support from professional bodies. 63% of the respondents are not satisfied with support from banks and financial institutions and tax concession. By using Garrett ranking method the factor not interested in taking risk ranks first for not exporting the product and least rank is fear of meeting the standards of quality.

 

Suggestions:

·        A separate co-operative bank can be established for financing silverware industry. The bank could advance loans and advances to silverware manufacturing units at lower rate of interest.

·        One of the major problems is frequent power shut down. In order to eradicate this problem subsidy can be provided for the purchase of generator or uninterruptible power supply (UPS).

·        The government should liberalize the rules and formalities for procuring the silver and machineries.

·        Since silverware manufacturing industry is operating as cottage industry in most of the regions they are not aware of the marketing strategies to sell or promote their products.  The government should promote marketing agencies for silverware products.

·        Manufacturers must be the exporters of their products. In order to export their products directly the government must organize awareness programs to the manufacturers about the procedures and opportunities for exporting the products.

·        Proper training programs should be conducted for the unskilled and skilled labourers. Practices must be given for making artifact and handicrafts. So that demand will be more for such products and increases the opportunities for exports.

 

CONCLUSION:

Silverware manufacturing industry contributes a reasonable percentage to gross domestic product in ensuring economic growth, employment opportunities, reduces poverty and creates fashion and culture. But recent times most of these enterprises are not successful due to scarcity in finance. In regards to various problems such as power shut down, poor financial assistance, high rate of interest for loans from banks, lack of subsidies and concessions, burdensome formalities, lack of skilled workers, inadequate guidance for marketing, unavailability of raw materials, difficulties in export procedures and unaware of export opportunities. In overseas markets demand for Silverware products are increasing day by day. This can be reached by means of exporting the products by implementing the suggestions effectively.

 

REFERENCE:

1.       Anantha, K. H., Jayasheela and Vishwanatha. (2004). Small Scale Industries in India: Are They Contributing Enough. Small Enterprises Development Management and Extension Journal, 341, 73-80.

2.       Balamurugan, S. and Tasnim, S. (2016). An Insightness of women Empowerment through self help groups in Tamilnadu India. Global Journal of Research Analysis, 5 (7), 246-248.

3.       Balasubrahmanya, M. H. (2000). Small Industry Modernization in India: A perspective of emerging dimensions of needs for finance. Small Enterprises Development, Management and Extension Journal, 27 (3), 33-43.

4.       Brijesh, P. and Kirit, C. (2013). Rural Entrepreneurship in India: Challenge and Problems. International Journal of Advance Research in Computer Science and Management Studies, 1 (2), 28-37.

5.       Francis, C. (2002). Youth Entrepreneurship: Meeting the Key Policy Challenges. England: Oxford University.

6.       Hannah, O. B. (2012). Evolution and Theories of Entrepreneurship: A Critical Review on the Kenyan Perspective. International Journal of Business and Commerce, 1 (11), 81-96.

7.       Jain, S. (2010). Indian Textile Industry A Growth Perspective. Singapore: Vardhman Group.

8.       Jaskaran, S. and Davinder, S. (2014). Problems Related to the Financing of Small Firms in India. Internation journal of innovative research and development, 3 (1), 317-321.

9.       Jaya, M. and Baskar, D. (2015). A pragmatic study on Innovative technique in teaching. Global Journal for Research Analysis, 4 (9), 194-195.

10.     Kalyani and Brinda. (2010). The Personal and Infrastructural Problems of Small Scale Entrepreneurs. SuGyaan, Management Jouranl of Siva Sivani Institute of Management, 11 (1), 83-98.

11.     Lagat, C., Maru, L., Chepkwony, J. and Kotut, C. S. (2012). Youth Enterprise Development Fund (Yedf) and Growth of enterprise. European Journal of Economics, Finance and Administrative Sciences (54), 174-182.

12.     Lawrence, N. K. (2012). Factors Affecting the Success of Youth Enterprise Development Funded Projects in Kenya; A Survey of Kigumo District Muranga County. International Journal of Business and Commerce, 1 (10), 61-81.

13.     Manjusmita, D. and Kulveen, K. (2012). Youth Entrepreneurship as a Way of Boosting Indian Economic. International Review of Management and Marketing, 2 (1), 10-21.

14.     Mohammad, S. and Assel, S. (2008). The Challenges of Entrepreneurship in dynamic society. Central Asia business, 1 (1), 34-45.

15.     Nico, S. and Nicolene, B. (2014). Factors Affecting Entrepreneurial and Economic Growth: The Namibian Case. International Business Research Conference, (pp. 1-18). London.

16.     Palanivelu, V. R. and Manikandan, D. (2015)., A study on Customer Relationship Management a Recruitment Consulting firm- Iconium Group, Chennai. Nehru Journal of Management Research, 1 (10), 98-1.

17.     Palanivelu, V. R. and Manikandan, D. (2015). Concept of Entrepreneurship, Cognitive Discourese. International Multidisciplinary Journal NAS Publication, 3 (3), 8-13.

18.     Palanivelu, V. R. and Manikandan, D. (2011). Economic Environment of Entrepreneurial Development Programme in India. International Recognition Research Journal Golden Research Thoughts Double Blind Peer Reviewed Journal, 4 (11), 1-6.

19.     Paras, J. (2016). A Study About Role of Integrating Thinking Skill in Success. Global Journal for Research Analysis, 5 (10), 344-345.

20.     Prasad, R. K. (2015). SWOT analysis of Indian Apparel and Textile Industry. India.

21.     Prem, S. P. and Nikhil, D. B. (2015). Youth Entrepreneurship: Opportunities and Challenges in India. IOSR Journal of Research and Method in Education, 5 (2), 55-59.

22.     Santhi, N. and Rajesh Kumar, S. (2011). Entrepreneurship Challenges and Opportunities in India. International Journal of Industrial Engineering and Management Science, 1 (special), 14-16.

23.     Subramaniya, B. R. and Jothi, S. (2017). A study on influene of physical related factors on performance of handloom weavers in omalur region salem district tamilnadu india. International Journal of Multidisciplinary Research and Development, 4 (4), 196-200.

24.     Sudheesh, N. (2016). Silver Metal of Opportunities for India.

25.     Textiles, M. o. (2014-2015). Department of Industrial Policy and Promotion, Press Information Bureau. India: Indian Textile Journal.

26.     Timothy, Blair, R., William, Rubley, H. and William, D. N. (2007). The effective teacher of reading: Considering the “what” and “how” of instruction. International Reading Association, 60 (5), 432–438.

27.     Trilochan, s. (2015). Challenges and prospects of youth entrepreneurship in kathmandu. Nepal: University of Nordland.

28.     Venkatesan, R. and Kattti, V. (1999). Indian Textile Policy for the 21st Century. New Delhi: B. R. Publishing Corporation.

29.     Vikram Utamsingh. (2013). SWOT Analysis of the Indian Textile. India: KPMG India Pvt. Ltd.

30.     Yoganandan. (2015). Textile Export Promotion in India-Salient. Bonfring International Journal of Industrial Engineering and Management Science, 5 (1).

31.     Yoganandan, G. (2015). An overview of Tirupur: The Textile city in India. Global Journal for Research Analysis, 4 (3), 55-56.

32.     Yoganandan, G. and Sakthivel, M. (2015). Brand Preference towards Toothpaste in Namakkal District, Tamilnadu. International Journal of Research in Management Studies (IJRMS), 5 (1), 01-09.

33.     Yoganandan, G. and Vetriselvan, V. (2016). Entrepreneurship development in India. Shanlax International Journal of Management, 3 (1), 345-346.

34.     Yoganandan, G. and Vetriselvan, V. (2016). Growth of textile industry in India. Global Journal For Research Analysis, 5 (10), 25-26.

35.     Yoganandan, G. and Vetriselvan, V. (2016). Growth of textile industry in India. Global Journal For Research Analysis, 5 (10), 25-26.

36.     Yoganandan, G. and Vetriselvan, V. (2016). Youth Empowerment and Skill Development. Salem: School of Humanities and Social Sciences.

37.     Yoganandan, G. and Vetriselvan, V. (2016). Youth Empowerment and Skill Development. School of Humanities and Social Sciences (pp. 288-292). Salem: School of Humanities and Social Sciences.

 

 

 

 

 

 

Accepted on 11.08.2017                © A&V Publications all right reserved