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Indian Institute of Management Ahmedabad IIMA/MAR0490
Prepared by Professor Sanjay Verma and Shubhi Thakuria, Research Associate, Indian Institute of
Management, Ahmedabad. The authors are thankful to Ms. Alka Talwar and Mr. Premal Pandya
from Tata Chemicals Limited for their support in writing the case study.
Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for classroom
discussion. They are not designed to present illustrations of either correct or incorrect handling of
administrative problems.
© 2017 by the Indian Institute of Management, Ahmedabad
Okhai-Centre for Empowerment:
Refashioning the Lives of Rural Women
The Okhamandal region in Gujarat, painted in earthy shades of brown, simmers in the hot sun
perennially. The vast expanse of barren land is interrupted only by scattered villages, thorny shrubs
and the occasional camel cart. In this mono-hued scenery, sitting outside their humble dwellings are
small groups of tribal women. They create a stark contrast to the austere surroundings with their
brightly coloured pieces of cloth, over which they are bent, fingers swiftly employing needle and
thread to weave an intricate and traditional tale on fabric…..
Source: Article - Tales told in tapestry, Tata Website1
INTRODUCTION
Okhai was the name attributed to the people of the Okhamandal region2 that covered the
area from Dwarka to Okha town in the Gujarat state of India. Okhai-Centre for Empowerment
(see Exhibit 1) was conceived by the Tata Chemicals Society for Rural Development
(TCSRD) (see Exhibit 2) in 2002 as an innovative social enterprise to empower women of
Okhamandal by providing them opportunities to work and earn. In FY 2015, Okhai
recorded revenue of nearly INR 10 million (see Exhibit 3 and Exhibit 4). The management
team of Okhai now wanted to achieve a turnover of INR 1 billion by FY 2025. Was this target
achievable? What could be the best strategy for Okhai to move to the next level? These were
the key concerns of the leadership team at Okhai.
The head of community development at Tata Chemicals Limited (TCL), Alka Talwar,
shared:
We want to project Okhai as a brand representing the artistic skills of rural Indian artisans,
especially women. Many NGOs working in the handicraft sector in India struggle with
quality, design, procurement and marketing issues despite having a broad base of artisans
with them. We intend to collaborate with the artisans associated with them by sharing our
best practices to scale Okhai. It can be a win-win situation for all the stakeholders. At the end
of the day, the artisans should make money.
1www.tata.com/article/inside/biLqJvOGapA=/TLYVr3YPkMU= (accessed on September 20, 2015)
2www.census2011.co.in/data/subdistrict/3812-okhamandal-jamnagar-gujarat.html;
(accessed on September 20, 2015); See Exhibit 5 for map.
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THE INDIAN HANDICRAFT INDUSTRY
Anything made by hand with some artistic value, with/without functional utility is termed
as handicraft.3 Owing to its rich culture, history and traditions, India is one of the major
producers and suppliers of handicraft products in the world.4 According to a study
conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM),
India's handicraft exports were expected to cross the INR 240 billion mark by FY 2020-21.5
The Indian handicraft industry is fragmented, with more than seven million regional
artisans and more than 67,000 exporters/export houses promoting regional art and
craftsmanship in the domestic and global markets. The handicraft sector is important for the
Indian economy as it is one of the largest employment generators and accounts for a
significant share of the country’s exports.6
ORIGIN OF OKHAI
In 1995, a team from TCSRD led by Vivek Talwar, then head of CSR at Tata Chemicals,
conducted a socio-economic survey of 42 villages of the Okhamandal region. It was the
home of economically penurious tribals, who were dependent on agriculture as their
primary source of income. The region received scanty rainfall and mere agricultural output
was not sufficient to earn a livelihood. The women of the region had handicraft skills unique
to their region. The walls of their huts were decorated with unique applique7 work and
embroidered hangings. Their work depicted human figures, birds and animals and reflected
their association with nature, lifestyle, rituals and legends. The style of work was popularly
known as Okhai.
TCSRD identified the need to provide a platform to the women of Okhamandal to showcase
their talent and provide them with an alternative source of income. They started a
programme in the handicrafts section at Mithapur8, using the artistic skills of 35 women
from 14 villages of Okhamandal. In 2001, the programme had 200 women. The initiative
provided a wider market to the Okhai products and a constant source of income to the
women artisans, thus simultaneously helping to preserve the traditional crafts of the region.
In 2003, handicraft development activities under TCSRD were branded under the name
‘Okhai’ to promote better market linkages. Extension activities were taken up to ensure that
the 150-200 women associated with the initiative earned at least INR 2,000 per month. In
2004, Okhai doubled its sale to INR 600,000 from the previous year, which further motivated
the team to scale up production capacities significantly. Over the years, the quality and the
outreach of Okhai products has kept on increasing. In 2007, 400 women artisans were
associated with Okhai, earning a monthly income in the range of INR 500-5,000.
3www.india-crafts.com/business-reports/indian-handicraft-industry/handicraft-introduction.htm (accessed on
September 20, 2015)
4www.india-crafts.com/business-reports/indian-handicraft-industry/handicraft-overview.htm (accessed on
September 20, 2015)
5www.business-standard.com/article/news-cm/indian-handicrafts-exports-may-cross-rs-24k-crore-mark-by-
2020-study-115062900334_1.html (accessed on September 20, 2015)
6 www.ibef.org/exports/handicrafts-industry-india.aspx (accessed on September 20, 2015)
7Ornamental needlework in which pieces of fabric are sewn or stuck on to a larger piece to form a picture or
pattern; en.wikipedia.org/wiki/Appliqu%C3%A9 (accessed on September 20, 2015)
8Mithapur is a town situated in extreme tip of lower jaw of Gujarat, India. It has the oldest plant of TCL and is
regarded as the birthplace of Tata Chemicals.
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Okhai was registered as a separate trust in 2008. It was from here on that Okhai started
focussing on profits, self-sustainability and scalability. The year 2008 also saw a focus on
product development, design, procurement, quality assurance, brand promotion and sales
activities. The city of Ahmedabad located in Gujarat was regarded as one of textile hubs of
India. Tata Chemicals had a vacant office space in the city which was allocated to Okhai in
2009 and named as Okhai Studio. Premal Pandya, a former sales and marketing executive in
TCL, was assigned the responsibility of heading and revamping Okhai. He said:
Understanding the nature of the garments business, viz. cash flow, retail presence, customer
preferences, with continuous training and upgradation, was a daunting task for me.
However, the hope of doing something exciting in Okhai persuaded me to take up this
initiative. It was challenging to start something from zero and take it to another level.
Nusrat Dayamakumar, sales and marketing manager at Okhai Studio, was quoted as saying,
“We tried to market the culture of Okhamandal so that its rich heritage is known to people across
India and abroad.” Embarking from Okhamandal, Okhai gradually expanded its scope and
incorporated women from Haldia9 in 2010 and Babrala10 in 2011 under its spectrum. Haldia
promoted jute craft while Babrala promoted the traditional Mughal art of Karjobi.
Depending upon the skills of artisans, at each location, products were innovated, designed
and marketed under the single umbrella of ‘Okhai-Centre for Excellence.’
PRODUCTION PROCESS
The production process of Okhai products is shown in Exhibit 6. The major steps involved in
the production process are elaborated below along with the issues associated with them.
1. Procurement of Raw Material
Okhai’s production centre was located in Mithapur. The fabric was mainly outsourced from
the nearby states. Initially, one person from the Okhai team went personally to purchase the
fabric, but later the process was digitalised using online applications. Pandya recapitulated:
These days, even small suppliers from villages use technology. Once, when I went to Bagru
village of Rajasthan to purchase the material, the seller installed the application on my mobile
so that I can digitally access the designs... Now, we don’t go personally to the supplier’s place.
Most of the raw material is finalised digitally. There are no intermediaries in procurement.
The timely and appropriate procurement of the raw materials was very challenging. Jayant,
master designer at Okhai, explained:
Today, if I order raw material for 9-10 designs and all of it comes at the same time, it occupies
large space. Designing fabrics takes its own time; till then the fabric is lying with us, but the
clock starts on the supplier’s side for the recovery as soon as it is procured. Our credibility is
lost, if we do not pay on time. Meanwhile, if the stitching unit is closed, the artisans get a
wrong perception that we have no work to do. There is a constant pressure to engage all the
units.
Okhai appointed its artisans as part-time workers, who worked from home at their pace and
leisure. This system had its set of advantages and disadvantages.
9Haldia is a town in West Bengal state of India where the manufacturing unit of TCL is located.
10Babrala is a town in Uttar Pradesh state of India where the manufacturing plant of TCL is located.
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For the close-knit community of tribals, social functions were given priority over
professional work. Anupama Vaghela, the manager of the Okhai store at Mithapur,
narrated:
Once we were given a large consignment. One large roll of cloth material was to be
embroidered for export as curtains. Working on this was challenging as the cloth was white,
and conditions in the village were not conducive to keeping it clean. Women were unable to
complete the order according to the required quality and timeline. From this experience, we
learnt that we should take only those orders that can be managed.
2. Designing
Designing was done at the Ahmedabad Okhai studio. A team of four people, headed by the
master designer provided designs and the colour combinations to stitch fabrics. A single
batch consisted of nearly ten designs, each with a few colour variations. The ideation of a
pattern took a day, and the consideration of embroidery, color combination, etc. took
another two days. It took approximately three days for a design to get finalised and the
designing of an entire batch took almost a month.
A. Sample Preparation and Design Finalization
The designing team at Okhai prepared samples at the Okhai Studio according to the
latest market trends and skills of the Mithapur artisans. The sample prepared at the
studio was sent to Mithapur, a semi-stitched sample was prepared by the women at
Mithapur and returned to the studio. After the designer approved the semi-stitched
sample, the bulk cutting and the stitching process began at the tailoring unit at
Mithapur. Per design, approximately 200 pieces were made. The appropriate quality
checks were done at every stage to ensure that the product fulfilled the quality
parameters. It took a processing cycle of nearly one month for each design to get
processed and two to three months for the complete batch to get processed. Jayant
added:
There is a constant pressure on us to expedite the production process. When the
product goes into the market, it gets an exposure when people come, see and buy it.
The feedback helps us to prepare the next design appropriately. As of now, our target
is 60 days, in which we want to complete 2,000 pieces.
Established benchmark data was not available, and hence Okhai was unable to
determine the time taken to produce the given number of products in the given duration
by the competitors in the market. Hence, it decided to understand the necessary
indicators of production and processes by collaborating with educational and research
institutes.
B. Bulk Cut and Distribution
The cut-cloth was then sent to the women at their homes for embroidery, along with a
work kit. “It allows them to work in their village environment, at a time of their choice,” said
Alka. A member of the Okhai team prepared kits for the artisans. Each kit contained the
required fabric, thread, mirrors and other items required for the product. Another
member distributed kits to the women and explained the design, quality parameters and
stipulated timelines.
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C. Final Stitching
Once the embroidery was completed, the batch went through another quality check after
which the final stitching was done at Mithapur. The quality checks were conducted at
every step, starting from the ideation to the final production. Jayant said, “At every stage
of production and product development we need to check for quality. During procurement, we
need to ensure that we procure the right raw material. While designing, we ensure that the
colour, motifs and textures work.”
D. Tagging and Packing
After the final stitching of the product, another round of quality check was done; the
products were tagged and packed for delivery. Colour bleeding continued to be a
teething problem. Light colors were considered safe as they did not bleed. Every product
of Okhai had a tag that provided washing instructions. Afterward, the photo-shoot was
done to prepare a catalogue of the products. Talwar said, “We realised that giving
incentives for on-time delivery and good quality works better than deducting payments for bad
quality.”
3. Marketing
In India, the handicraft industry was not as well organised as other sectors. It did not have a
well-established distribution system. Dayamakumar added:
We try to optimise every possible idea which comes to us. Only if the market grows for Okhai,
can we increase the number of artisans and their average income. Streamlining the supply
chain process along with the production process continued to remain a challenge for Okhai.
How could the production process be optimised?
Initially, people purchased Okhai products with the notion of charity. It was difficult to
decide whether to change that perception or not. Talwar said, “We want people to buy our
product as a choice, not as a favour.” Was that the appropriate decision? What could have been
the marketing strategy to ensure this? About the advertising policy, Pandya said, “We have to
work very cautiously here. If we do not see quick, tangible returns, we do not spend any money.”A
major challenge in the garment business was to understand the pulse of the market. Some
designs flew off the shelf instantaneously, other times they lay in the store for months.
Jayant stated, “Liquidation of some of our stocks is challenging for us. The success rate of our
designs is in the range of 70%-90%. The leftover products had to be sold at discounts.”
SELF HELP GROUPS (SHGs)
A self-help group (SHG11) was a village-based financial intermediary committee usually
composed of 10–20 local women or men. The members made small but regular contributions
over a few months until there was enough capital in the group to begin lending. Funds
could then be lent back to the members or others in the village for any requirement. In India,
many SHGs were associated with banks for the delivery of micro-credit12.TCSRD promoted
Okhai through SHGs in the Okhamandal region.
11www.yourarticlelibrary.com/india-2/self-help-group/self-help-group-shg-of-india-meaning-need-and-
objectives/66718/ (accessed on September 20, 2015)
12 www.microworld.org/en/about-microworld/about-microcredit (accessed on September 20, 2015)
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Each SHG comprised one head, called pramukh (head) who distributed the work amongst
the group members, kept records, performed quality checks and handled the payment
distribution. The group members provided mutual support to each other to achieve mutual
goals. Milind Gajjar, deputy manager at TCL Mithapur, elaborated, “Due to the male
dominated society and the low literacy rate of women, initially it was difficult to convince them to
form SHGs. Patience and perseverance were required to tackle these issues with sensitivity.”
The TCSRD team helped in forming the SHGs to bring together women who had earlier
lived in virtual isolation from the rest of the world, with limited facilities. The women of
Okhamandal became SHG members after paying an annual fee of INR 25. TCSRD provided
them training after assessing their competency level using a skill-based test. Under SHGs,
women were classified into three categories, A, B and C, based on their skill level. A was
regarded as the most skilled and C was considered to be the least skilled. The focus was to
enhance the skill of women members (see Exhibit 6).
PORTFOLIO OF PRODUCTS
Every design consisted of collections pertaining to spring, summer, winter and festivals.
Pandya added:
For the last five to six years, we had been focusing only on cotton fabric and vegetable dyes,
now we plan to add other fabrics and dyes as well. Women are being trained to work on
several fabrics like silk, linen, etc. These products will also come out very soon. We are
thinking of coming up with formal dresses having an Indian and ethnic touch. We have
designed handmade blazers, trousers and suits for office. Our product range is different from
the traditional black suits available in the market.
Okhai products achieved the Craftmark certification13 in 2012. The Okhai store in Alpha-One
Mall of Ahmedabad commenced operations on January 1, 2012. The year also marked the
association of Okhai with several domestic and international brands. It got associated with
retail outlets in Mumbai (Suruti & Karigar), Pune (Good Home Store) and Kolkata (Sasha).
Meanwhile, the Mithapur centre also recorded a rise in production along with an
improvement in the quality of the products and in the earnings of its women. As the
production quantity increased, it became difficult to maintain quality standards.
Subsequently, Okhai reduced its offerings. Pandya shared:
If our product goes to Bangalore from Gujarat, we do not want it to get rejected and come
back to us due to quality issues. Therefore, we decided to work selectively on selected
products. We chose to focus mainly on women’s garments like kurta14, shawls, skirts and
aprons. We have a small stitching unit, from where we generate 1,500-2,000 pieces a month;
we need to double the capital. Many women want to be Okhai artisans, but we are limited by
the fact that we are pushing only 2,000 pieces for processing due to the limited capacity of our
stitching unit.
Initially, accessories and carry bags were made mainly from pieces of cloth that were left
after the garments were stitched.
13Craftmark is an initiative of the All India Artisans and Craft workers Welfare Association, which helps denote
genuine Indian handicrafts, develop sector-wide minimum standards and norms for labeling a product as a
handicraft product, and increase consumer awareness of distinct handicraft traditions.
14 It is a popular upper garment for men and women in India with several variants. See Exhibit 7 for the design of
a Kurta.
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Later, there was an enormous demand for bedcovers, cushion covers, wall hangings,
tablecloths, curtains, etc. mainly as corporate gifts. Okhai started making such products
exclusively. The traditional designs and colour combinations were also evolved to cater to
the taste of the urban population and give a modern contemporary look to the products.
Exhibit 8 shows the portfolio of Okhai products in 2015.
PRODUCT MERCHANDISE
1. Retail Outlets and Exhibitions
In July 2008, the first retail outlet of Okhai was launched in Himalaya Mall of Ahmedabad.
Pandya shared, “In Himalaya Mall, the Okhai store was located in the right most corner of the third
floor. After some time we realised that this was a poor choice for a retail store to operate in. We
understood that the first preference of customers is to see the left side in the retail segment.”
In January 2012, the retail outlet was shifted to Alpha-One Mall, which was one of the
famous Malls in Ahmedabad. Pandya added:
The environment and audience of the Gujarati shopping market in Alpha-One was most
suited for Okhai. There were shops available on the first floor, but their rent was five times
our turnover. It was not possible for us to rent it. Hence we rented an outlet on the third
floor. Eighty percent of people who entered the store, ended up buying our product. After
three years, now we feel the need to shift from the top floor to the second floor to attract more
customers.
The Okhai store at Ahmedabad won the best store award for two consecutive years for its
overall performance, décor, merchandising and sales pattern. Over a thousand consumers
were queried in a survey to ascertain their comprehensive opinion towards Okhai’s flagship
store. It was evaluated on the basis of the customer’s perception towards the store and also
on the sales generated in the last financial year.15 Dayamakumar elaborated:
Since we are an NGO, operated through a trust, funding is a key challenge in opening retail
stores directly. We choose to tie up with different partners and boutiques in various metro
cities of India to sell Okhai products. We also sell Okhai products through our corporate
network. So, keeping in mind our limited resources and money, we are planning to expand
slowly.
The Pune outlet of Okhai was launched in January 2014. The third store of Okhai, Okhai-
Karigar started in June 2014 at Jamshedpur. It was a joint venture with Tata Steel that
included products made by the rural artisans of Jharkhand. Okhai products were also
available in multi-brand outlets of metro cities in India. Besides selling the products through
the retail outlets, Okhai primarily sold its products in various exhibitions held in different
cities via renowned NGOs. Pandya shared:
Cash flow is vital to us, and thus, apart from exhibitions, we go to Tata group offices. It serves
as a good market for us as we don’t have to spend much. If our sales person stays at a hotel,
the entire earning at the exhibition might be spent in transport. If we have access to a Tata
guest house, I prefer to make his staying arrangements there. Besides, we are also looking for
collaborating with different NGOs from the Tata group itself.
15www.tata.com/article/inside/V2F8gdhMB!$$$!E=/TLYVr3YPkMU=(accessed on September 20, 2015)
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2. Online Portal16
In June 2014, Okhai’s e-portal was launched. Speaking at the launch of the website, Talwar
quoted:
It is an extremely positive development for Okhai and the members of the SHGs, who will
now be able to witness their handicraft and its growing demand on an interactive online
platform. By taking these applique handicrafts online, it will not only help in furthering the
cause but also spread awareness about the traditional craft of this region, thus helping us to
preserve a rich part of our cultural heritage. We aim to keep up with such positive
developments and brighten the life of thousands of women from Okhamandal as well as the
millions who've never been there.
The portal had started showing its impact online as it is accessible 24*7, where people could
browse, view and purchase the products anytime. Pandya added:
Slowly and gradually Okhai’s portal is going to pick up popularly. We have also become
active on Facebook. We want to push our portal rather than going on other online shopping
sites. We prefer not to tie up with other e-sellers, primarily because our products are priced a
bit higher as compared to products present on those portals due to the intricate handwork.”
Was that a good idea? Alka shared:
We need to ensure that a certain minimum number of pieces of each design and size are with
them. On the e-commerce platforms, inventory is tied up and often left unsold which blocks
money. For us, it is important to ensure the rotation of funds. If someone orders and we do
not fulfill, it is not good for us and the e-commerce website as well. In our portal, products are
linked up to our store.
INCOME OF ARTISANS
After successful completion of the training, the women received a card with a code number
that recorded details of all the work done by them. The card recorded the payment status of
each woman. The monthly income of artisans ranged between INR 500-5,000. It depended
on the number of pieces prepared by the artisans, the time taken and the intricacy of the
embroidery involved.
The designing team decided the embroidery. The cost of stitching was communicated to
each SHG leader by the production team before the distribution of work and the artisans
negotiated the payment rate.
COMPETING WITH COMPETITORS
Fabindia17 and Biba18 were two important competitors of Okhai. Biba exclusively catered to
the demand for female apparel and accessories. Fabindia produced diverse products like
clothing for men, women and children, accessories, furniture, cosmetics and organic-food
amongst others. Most of the competitors in the handicraft business usually operated through
two different units.
16www.Okhai.org (accessed on September 20, 2015)
17 www.fabindia.com/ (accessed on September 20, 2015)
18 www.biba.in/ (accessed on September 20, 2015)
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Pandya explicated:
Initially, we worked as suppliers to the key players in the market, who are now our
competitors. We feel that the price is the primary differentiating criterion of Okhai with
popular premium competitors. We purchase the raw materials from the same vendors, our
material is also vegetable die block printed, and our product has more handwork than theirs.
We tried pitching our products slightly higher, but it was not too successful. Also, some of
our competitors have numerous stores. If some designs do not sell at one place, then they have
the option to sell at some other store. But this is not so in our case; if our product doesn’t sell
in our primary store, we can’t push it to other stores.
Embroidery was a slow paced and skilled job and hence hand-made products were costly.
To make the customers understand this was again an issue. Machine embroidery was faster
than the hand work that artisans did. The local machine-made products which were
available in the market at the extremely low prices also posed serious competition to Okhai.
TRAINING PROGRAMS
The parent trust TCSRD conducted the training programs at Okhai. The lead designer at
Okhai identified the particular type of craft in which artisans were required to be trained.
The artisans were then nominated for the training and taught the standard Indian cuts and
fits of kurtas. Pandya added, “We identified that we need to increase the production of bed-sheets
from 300 to 500 per month; thus we required 30 more women to do the applique work. Accordingly,
TCSRD trained these people.” In 2008, Okhai sent 50 women to the reputed National Institute
of Fashion Technology (NIFT)19 for training.
Pandya shared:
Getting them out of home to the stitching unit was tough, taking them from Mithapur to
NIFT, Gandhinagar for three months was a difficult task. Training them helped us in
ensuring quality cuts and stitching. One of the things that we learned was that our main
competitors could make a kurta in 2.3 metres of cloth while we were using 3 metres. We
realised that we were wasting a lot of material. As far as cutting is concerned, we are perfect.
But, a lot of materials get stuck in inventory or work in progress; we are still trying to
address these issues.
OKHAI IMPRINTS
An article published by Geetu Vaidh20 quoted:
Empowerment enterprise, entrepreneurship, profit and annual turnover may be common
sounding words in an urban set up and coming from a B-school graduate, but one does sit up
and take note when the person using these is a simple tribal with not much education, and
more so when the person happens to be a woman from one of the most backward areas in the
country.But this is true in the cases of Ramiben and Laxmiben from the hinterland of Gujarat
The women were proud to be associated with Okhai. It had become a status symbol for them
to belong to the Okhai family.
19 www.nift.ac.in/ (accessed on September 20, 2015)
20 www.tribuneindia.com/2014/20140309/spectrum/society.htm (accessed on September 20, 2015)
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The Okhai website quoted,“Okhai brand has become a powerful statement by the women of
Okhamandal villages over the years. A statement that empowers them, a statement that gives them
and the region an identity, a statement that makes people notice this beautiful form of art and
patronise it.” Ramiben, one of the Okhai artisans, shared,
I have built a pucca house and educated my children from the income I got from Okhai. People
approach me now and request me to advise them on improving their lives, and I get a lot of
respect from the villagers. I have travelled to other places for exhibitions, even travelled to
Bangalore alone. What I did not get within the four walls of my home, I have received from
Okhai. It is my wish that my children, a girl and a boy, receive the best education. My
husband also supports my view. We faced opposition from my mother-in-law who said it was
a waste of money to educate our daughter. I replied that I would spend my own money on
educating my daughter.
THE WAY FORWARD
Pandya shared:
Okhai is like a start up with no funds. TCL initially gave us some seed capital to start, and it
was an interest-free loan. We were supposed to return the money to them. Five years back the
turnover of Okhai was about INR 2.5 million, and now it is around INR 10 million; the scope
is still phenomenal. The model is now good enough to be easily replicated at different
locations. Once the local trade/abilities of the artisans are identified, and its gradation is
done, plans can be made and implemented efficiently.
Is it the right time to expand Okhai’s product portfolio or not? Should Okhai be like Biba
which solely focusses on female apparel or Fabindia which has diversified into apparel,
furniture, eatables and other products? Where should Okhai position itself? Should it go in
for marketing or not and how should it go about it? Is it appropriate to open more retail
outlets or to promote the selling of Okhai products via exhibitions? What could be the
strategy to deal with local and global competitors in the same field? Should Okhai continue
making its products or should it take on the trading route? These were some of the
significant concerns for Okhai. It had started exploring different locations and mediums for
expansion. Jayant added:
When I got to know that we have a target of INR 1 billion over the next ten years, I was
nervous and doubtful. But Premal explained to me that after being in the market for so long,
we had understood the whole business of this field. Now for expansion, we have to focus on
increasing our outreach and adding more people. We have to develop our strategy
accordingly. How can we improve our product and processes? Have we understood the
market correctly or not? Are we selling the product at the right price? Are we able to deliver
our product in time? These are questions that we constantly try to analyse to have a better
understanding of this business; it also helps us to perform better.
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Exhibit 1(a): Okhai Logo
1(b) Display at ‘Okhai-Centre for Empowerment’ at Mithapur
Source: Okhai Mithapur Office
Exhibit 2: Tata Chemicals Society for Rural Development (TCSRD)
Tata Chemicals Limited (TCL) set up the Tata Chemicals Society for Rural Development (TCSRD) in
1980 to promote its social objectives for the communities in and around Mithapur, where its facility is
located. This service was further extended to the communities in and around its Babrala and Haldia
facilities. The Society works to protect and nurture the rural populations in and around TCL's facilities,
and helps people achieve self-sufficiency in natural resource management, livelihood support and the
building of health and education infrastructure.
Taking into account the different geographical spread of the three regions and their individual
subcultures, different agricultural, economic and development programmes have been implemented
in these regions. Tata Chemicals Limited was one of the first organizations to hold an Impact camp,
which was held at Mithapur in the year 1982, providing eye care to hundreds of patients at the
Mithapur Hospital. Tata Chemicals Limited was also the first organization to run world’s first hospital
on wheels – the Life Line Express, through Jamnagar district for the first time between November 21,
2004 and December 21, 2004.
Source: TCSRD Website
12 of 15 IIMA/MAR0490
Exhibit 3: Okhai Revenue, In Indian Rupees(INR)
Financial Year Turnover
2001-2002 1,34,000
2002-2003 1,64,000
2003-2004 3,40,000
2004-2005 6,00,000
2005-2006 9,02,000
2006-2007 14,25,00
2007-2008 23,35,00
2008-2009 21,09,00
2009-2010 36,00,00
2010-2011 42,91,00
2011-2012 2,889,463
2012-2013 57,83,715
2013-2014 60,27,647
Source: TCSRD and Okhai Annual Reports
Exhibit 4: Comparative study of Mithapur, Okhai- Centre for Empowerment Balance Sheet
(In INR)
Year/Parameters 2011-2012 2012-2013 2013-2014
Total Liabilities/Assets 12,301, 467 1,24,42,268 1,31,77,666
Total Expenditure/ Income 5,714,790 64,90,420 84,19,312
Loan, received from TCL 1,500,000 15,00,000 15,00,000
Loan, received from TCSRD, Mithapur 3,200,000 32,00,000 32,00,000
Loan, received from TCSRD, Babrala NA 1,27,701 18,701
Source: TCSRD and Okhai Annual Reports
5(a): Present statistic of women artisans and staff at Okhai
Locations No. of Women artisans No. of SHG No. of Permanent staff
Mithapur(Gujarat) 300 23 8
Babrala (Uttar Pradesh ) 31 9 Nil
Haldia (West Bengal) 16 3 Nil
Ahmedabad studio NA Nil 13
Source: Okhai team
13 of 15 IIMA/MAR0490
Exhibit 5 (b): Map of various Indian places showing operational areas of Okhai
Source: TCSRD 2011-2012 Annual Report
14 of 15 IIMA/MAR0490
Exhibit 6: Production Process at Okhai
Source: Okhai Mithapur Office
Exhibit 7: Depicting Female and Male Kurta
Source: Okhai Website
15 of 15 IIMA/MAR0490
Exhibit 8: Porfolio of products at Okhai (FY15)
Source: Okhai Website and Okhai Office
No Category No Category No Category
A Apparels B Home Furnishings C Lifestyle Accessories
Women 1 Bed Cover Collection 1 Shopping /Jhola Bags
1 Long Kurta 2 Cushions 2 Purses
2 3/4th Kurti 3 Wall Hangings 3 Sling Bags
3 Top 4 Curtains 4 Mobile Pouch
4 Dupattas 5 Toran 5 Coin pouch
5 Shawls 6 Runners 6 Spec pouch
6 Stoles 7 Jewellery Pouch
7 Patiala Dupatta Set 8 Files/Folders
8 Patialas 9 Notepads
9 Salwars 10 Key rings
10 Leggings 11 Name tags
Men 13 Laptop Bags
1 Long Kurta 14 Laptop Sleeve
2 Short Kurta
3 Ties

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Okhai iima case study

  • 1. Indian Institute of Management Ahmedabad IIMA/MAR0490 Prepared by Professor Sanjay Verma and Shubhi Thakuria, Research Associate, Indian Institute of Management, Ahmedabad. The authors are thankful to Ms. Alka Talwar and Mr. Premal Pandya from Tata Chemicals Limited for their support in writing the case study. Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for classroom discussion. They are not designed to present illustrations of either correct or incorrect handling of administrative problems. © 2017 by the Indian Institute of Management, Ahmedabad Okhai-Centre for Empowerment: Refashioning the Lives of Rural Women The Okhamandal region in Gujarat, painted in earthy shades of brown, simmers in the hot sun perennially. The vast expanse of barren land is interrupted only by scattered villages, thorny shrubs and the occasional camel cart. In this mono-hued scenery, sitting outside their humble dwellings are small groups of tribal women. They create a stark contrast to the austere surroundings with their brightly coloured pieces of cloth, over which they are bent, fingers swiftly employing needle and thread to weave an intricate and traditional tale on fabric….. Source: Article - Tales told in tapestry, Tata Website1 INTRODUCTION Okhai was the name attributed to the people of the Okhamandal region2 that covered the area from Dwarka to Okha town in the Gujarat state of India. Okhai-Centre for Empowerment (see Exhibit 1) was conceived by the Tata Chemicals Society for Rural Development (TCSRD) (see Exhibit 2) in 2002 as an innovative social enterprise to empower women of Okhamandal by providing them opportunities to work and earn. In FY 2015, Okhai recorded revenue of nearly INR 10 million (see Exhibit 3 and Exhibit 4). The management team of Okhai now wanted to achieve a turnover of INR 1 billion by FY 2025. Was this target achievable? What could be the best strategy for Okhai to move to the next level? These were the key concerns of the leadership team at Okhai. The head of community development at Tata Chemicals Limited (TCL), Alka Talwar, shared: We want to project Okhai as a brand representing the artistic skills of rural Indian artisans, especially women. Many NGOs working in the handicraft sector in India struggle with quality, design, procurement and marketing issues despite having a broad base of artisans with them. We intend to collaborate with the artisans associated with them by sharing our best practices to scale Okhai. It can be a win-win situation for all the stakeholders. At the end of the day, the artisans should make money. 1www.tata.com/article/inside/biLqJvOGapA=/TLYVr3YPkMU= (accessed on September 20, 2015) 2www.census2011.co.in/data/subdistrict/3812-okhamandal-jamnagar-gujarat.html; (accessed on September 20, 2015); See Exhibit 5 for map.
  • 2. 2 of 15 IIMA/MAR0490 THE INDIAN HANDICRAFT INDUSTRY Anything made by hand with some artistic value, with/without functional utility is termed as handicraft.3 Owing to its rich culture, history and traditions, India is one of the major producers and suppliers of handicraft products in the world.4 According to a study conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), India's handicraft exports were expected to cross the INR 240 billion mark by FY 2020-21.5 The Indian handicraft industry is fragmented, with more than seven million regional artisans and more than 67,000 exporters/export houses promoting regional art and craftsmanship in the domestic and global markets. The handicraft sector is important for the Indian economy as it is one of the largest employment generators and accounts for a significant share of the country’s exports.6 ORIGIN OF OKHAI In 1995, a team from TCSRD led by Vivek Talwar, then head of CSR at Tata Chemicals, conducted a socio-economic survey of 42 villages of the Okhamandal region. It was the home of economically penurious tribals, who were dependent on agriculture as their primary source of income. The region received scanty rainfall and mere agricultural output was not sufficient to earn a livelihood. The women of the region had handicraft skills unique to their region. The walls of their huts were decorated with unique applique7 work and embroidered hangings. Their work depicted human figures, birds and animals and reflected their association with nature, lifestyle, rituals and legends. The style of work was popularly known as Okhai. TCSRD identified the need to provide a platform to the women of Okhamandal to showcase their talent and provide them with an alternative source of income. They started a programme in the handicrafts section at Mithapur8, using the artistic skills of 35 women from 14 villages of Okhamandal. In 2001, the programme had 200 women. The initiative provided a wider market to the Okhai products and a constant source of income to the women artisans, thus simultaneously helping to preserve the traditional crafts of the region. In 2003, handicraft development activities under TCSRD were branded under the name ‘Okhai’ to promote better market linkages. Extension activities were taken up to ensure that the 150-200 women associated with the initiative earned at least INR 2,000 per month. In 2004, Okhai doubled its sale to INR 600,000 from the previous year, which further motivated the team to scale up production capacities significantly. Over the years, the quality and the outreach of Okhai products has kept on increasing. In 2007, 400 women artisans were associated with Okhai, earning a monthly income in the range of INR 500-5,000. 3www.india-crafts.com/business-reports/indian-handicraft-industry/handicraft-introduction.htm (accessed on September 20, 2015) 4www.india-crafts.com/business-reports/indian-handicraft-industry/handicraft-overview.htm (accessed on September 20, 2015) 5www.business-standard.com/article/news-cm/indian-handicrafts-exports-may-cross-rs-24k-crore-mark-by- 2020-study-115062900334_1.html (accessed on September 20, 2015) 6 www.ibef.org/exports/handicrafts-industry-india.aspx (accessed on September 20, 2015) 7Ornamental needlework in which pieces of fabric are sewn or stuck on to a larger piece to form a picture or pattern; en.wikipedia.org/wiki/Appliqu%C3%A9 (accessed on September 20, 2015) 8Mithapur is a town situated in extreme tip of lower jaw of Gujarat, India. It has the oldest plant of TCL and is regarded as the birthplace of Tata Chemicals.
  • 3. 3 of 15 IIMA/MAR0490 Okhai was registered as a separate trust in 2008. It was from here on that Okhai started focussing on profits, self-sustainability and scalability. The year 2008 also saw a focus on product development, design, procurement, quality assurance, brand promotion and sales activities. The city of Ahmedabad located in Gujarat was regarded as one of textile hubs of India. Tata Chemicals had a vacant office space in the city which was allocated to Okhai in 2009 and named as Okhai Studio. Premal Pandya, a former sales and marketing executive in TCL, was assigned the responsibility of heading and revamping Okhai. He said: Understanding the nature of the garments business, viz. cash flow, retail presence, customer preferences, with continuous training and upgradation, was a daunting task for me. However, the hope of doing something exciting in Okhai persuaded me to take up this initiative. It was challenging to start something from zero and take it to another level. Nusrat Dayamakumar, sales and marketing manager at Okhai Studio, was quoted as saying, “We tried to market the culture of Okhamandal so that its rich heritage is known to people across India and abroad.” Embarking from Okhamandal, Okhai gradually expanded its scope and incorporated women from Haldia9 in 2010 and Babrala10 in 2011 under its spectrum. Haldia promoted jute craft while Babrala promoted the traditional Mughal art of Karjobi. Depending upon the skills of artisans, at each location, products were innovated, designed and marketed under the single umbrella of ‘Okhai-Centre for Excellence.’ PRODUCTION PROCESS The production process of Okhai products is shown in Exhibit 6. The major steps involved in the production process are elaborated below along with the issues associated with them. 1. Procurement of Raw Material Okhai’s production centre was located in Mithapur. The fabric was mainly outsourced from the nearby states. Initially, one person from the Okhai team went personally to purchase the fabric, but later the process was digitalised using online applications. Pandya recapitulated: These days, even small suppliers from villages use technology. Once, when I went to Bagru village of Rajasthan to purchase the material, the seller installed the application on my mobile so that I can digitally access the designs... Now, we don’t go personally to the supplier’s place. Most of the raw material is finalised digitally. There are no intermediaries in procurement. The timely and appropriate procurement of the raw materials was very challenging. Jayant, master designer at Okhai, explained: Today, if I order raw material for 9-10 designs and all of it comes at the same time, it occupies large space. Designing fabrics takes its own time; till then the fabric is lying with us, but the clock starts on the supplier’s side for the recovery as soon as it is procured. Our credibility is lost, if we do not pay on time. Meanwhile, if the stitching unit is closed, the artisans get a wrong perception that we have no work to do. There is a constant pressure to engage all the units. Okhai appointed its artisans as part-time workers, who worked from home at their pace and leisure. This system had its set of advantages and disadvantages. 9Haldia is a town in West Bengal state of India where the manufacturing unit of TCL is located. 10Babrala is a town in Uttar Pradesh state of India where the manufacturing plant of TCL is located.
  • 4. 4 of 15 IIMA/MAR0490 For the close-knit community of tribals, social functions were given priority over professional work. Anupama Vaghela, the manager of the Okhai store at Mithapur, narrated: Once we were given a large consignment. One large roll of cloth material was to be embroidered for export as curtains. Working on this was challenging as the cloth was white, and conditions in the village were not conducive to keeping it clean. Women were unable to complete the order according to the required quality and timeline. From this experience, we learnt that we should take only those orders that can be managed. 2. Designing Designing was done at the Ahmedabad Okhai studio. A team of four people, headed by the master designer provided designs and the colour combinations to stitch fabrics. A single batch consisted of nearly ten designs, each with a few colour variations. The ideation of a pattern took a day, and the consideration of embroidery, color combination, etc. took another two days. It took approximately three days for a design to get finalised and the designing of an entire batch took almost a month. A. Sample Preparation and Design Finalization The designing team at Okhai prepared samples at the Okhai Studio according to the latest market trends and skills of the Mithapur artisans. The sample prepared at the studio was sent to Mithapur, a semi-stitched sample was prepared by the women at Mithapur and returned to the studio. After the designer approved the semi-stitched sample, the bulk cutting and the stitching process began at the tailoring unit at Mithapur. Per design, approximately 200 pieces were made. The appropriate quality checks were done at every stage to ensure that the product fulfilled the quality parameters. It took a processing cycle of nearly one month for each design to get processed and two to three months for the complete batch to get processed. Jayant added: There is a constant pressure on us to expedite the production process. When the product goes into the market, it gets an exposure when people come, see and buy it. The feedback helps us to prepare the next design appropriately. As of now, our target is 60 days, in which we want to complete 2,000 pieces. Established benchmark data was not available, and hence Okhai was unable to determine the time taken to produce the given number of products in the given duration by the competitors in the market. Hence, it decided to understand the necessary indicators of production and processes by collaborating with educational and research institutes. B. Bulk Cut and Distribution The cut-cloth was then sent to the women at their homes for embroidery, along with a work kit. “It allows them to work in their village environment, at a time of their choice,” said Alka. A member of the Okhai team prepared kits for the artisans. Each kit contained the required fabric, thread, mirrors and other items required for the product. Another member distributed kits to the women and explained the design, quality parameters and stipulated timelines.
  • 5. 5 of 15 IIMA/MAR0490 C. Final Stitching Once the embroidery was completed, the batch went through another quality check after which the final stitching was done at Mithapur. The quality checks were conducted at every step, starting from the ideation to the final production. Jayant said, “At every stage of production and product development we need to check for quality. During procurement, we need to ensure that we procure the right raw material. While designing, we ensure that the colour, motifs and textures work.” D. Tagging and Packing After the final stitching of the product, another round of quality check was done; the products were tagged and packed for delivery. Colour bleeding continued to be a teething problem. Light colors were considered safe as they did not bleed. Every product of Okhai had a tag that provided washing instructions. Afterward, the photo-shoot was done to prepare a catalogue of the products. Talwar said, “We realised that giving incentives for on-time delivery and good quality works better than deducting payments for bad quality.” 3. Marketing In India, the handicraft industry was not as well organised as other sectors. It did not have a well-established distribution system. Dayamakumar added: We try to optimise every possible idea which comes to us. Only if the market grows for Okhai, can we increase the number of artisans and their average income. Streamlining the supply chain process along with the production process continued to remain a challenge for Okhai. How could the production process be optimised? Initially, people purchased Okhai products with the notion of charity. It was difficult to decide whether to change that perception or not. Talwar said, “We want people to buy our product as a choice, not as a favour.” Was that the appropriate decision? What could have been the marketing strategy to ensure this? About the advertising policy, Pandya said, “We have to work very cautiously here. If we do not see quick, tangible returns, we do not spend any money.”A major challenge in the garment business was to understand the pulse of the market. Some designs flew off the shelf instantaneously, other times they lay in the store for months. Jayant stated, “Liquidation of some of our stocks is challenging for us. The success rate of our designs is in the range of 70%-90%. The leftover products had to be sold at discounts.” SELF HELP GROUPS (SHGs) A self-help group (SHG11) was a village-based financial intermediary committee usually composed of 10–20 local women or men. The members made small but regular contributions over a few months until there was enough capital in the group to begin lending. Funds could then be lent back to the members or others in the village for any requirement. In India, many SHGs were associated with banks for the delivery of micro-credit12.TCSRD promoted Okhai through SHGs in the Okhamandal region. 11www.yourarticlelibrary.com/india-2/self-help-group/self-help-group-shg-of-india-meaning-need-and- objectives/66718/ (accessed on September 20, 2015) 12 www.microworld.org/en/about-microworld/about-microcredit (accessed on September 20, 2015)
  • 6. 6 of 15 IIMA/MAR0490 Each SHG comprised one head, called pramukh (head) who distributed the work amongst the group members, kept records, performed quality checks and handled the payment distribution. The group members provided mutual support to each other to achieve mutual goals. Milind Gajjar, deputy manager at TCL Mithapur, elaborated, “Due to the male dominated society and the low literacy rate of women, initially it was difficult to convince them to form SHGs. Patience and perseverance were required to tackle these issues with sensitivity.” The TCSRD team helped in forming the SHGs to bring together women who had earlier lived in virtual isolation from the rest of the world, with limited facilities. The women of Okhamandal became SHG members after paying an annual fee of INR 25. TCSRD provided them training after assessing their competency level using a skill-based test. Under SHGs, women were classified into three categories, A, B and C, based on their skill level. A was regarded as the most skilled and C was considered to be the least skilled. The focus was to enhance the skill of women members (see Exhibit 6). PORTFOLIO OF PRODUCTS Every design consisted of collections pertaining to spring, summer, winter and festivals. Pandya added: For the last five to six years, we had been focusing only on cotton fabric and vegetable dyes, now we plan to add other fabrics and dyes as well. Women are being trained to work on several fabrics like silk, linen, etc. These products will also come out very soon. We are thinking of coming up with formal dresses having an Indian and ethnic touch. We have designed handmade blazers, trousers and suits for office. Our product range is different from the traditional black suits available in the market. Okhai products achieved the Craftmark certification13 in 2012. The Okhai store in Alpha-One Mall of Ahmedabad commenced operations on January 1, 2012. The year also marked the association of Okhai with several domestic and international brands. It got associated with retail outlets in Mumbai (Suruti & Karigar), Pune (Good Home Store) and Kolkata (Sasha). Meanwhile, the Mithapur centre also recorded a rise in production along with an improvement in the quality of the products and in the earnings of its women. As the production quantity increased, it became difficult to maintain quality standards. Subsequently, Okhai reduced its offerings. Pandya shared: If our product goes to Bangalore from Gujarat, we do not want it to get rejected and come back to us due to quality issues. Therefore, we decided to work selectively on selected products. We chose to focus mainly on women’s garments like kurta14, shawls, skirts and aprons. We have a small stitching unit, from where we generate 1,500-2,000 pieces a month; we need to double the capital. Many women want to be Okhai artisans, but we are limited by the fact that we are pushing only 2,000 pieces for processing due to the limited capacity of our stitching unit. Initially, accessories and carry bags were made mainly from pieces of cloth that were left after the garments were stitched. 13Craftmark is an initiative of the All India Artisans and Craft workers Welfare Association, which helps denote genuine Indian handicrafts, develop sector-wide minimum standards and norms for labeling a product as a handicraft product, and increase consumer awareness of distinct handicraft traditions. 14 It is a popular upper garment for men and women in India with several variants. See Exhibit 7 for the design of a Kurta.
  • 7. 7 of 15 IIMA/MAR0490 Later, there was an enormous demand for bedcovers, cushion covers, wall hangings, tablecloths, curtains, etc. mainly as corporate gifts. Okhai started making such products exclusively. The traditional designs and colour combinations were also evolved to cater to the taste of the urban population and give a modern contemporary look to the products. Exhibit 8 shows the portfolio of Okhai products in 2015. PRODUCT MERCHANDISE 1. Retail Outlets and Exhibitions In July 2008, the first retail outlet of Okhai was launched in Himalaya Mall of Ahmedabad. Pandya shared, “In Himalaya Mall, the Okhai store was located in the right most corner of the third floor. After some time we realised that this was a poor choice for a retail store to operate in. We understood that the first preference of customers is to see the left side in the retail segment.” In January 2012, the retail outlet was shifted to Alpha-One Mall, which was one of the famous Malls in Ahmedabad. Pandya added: The environment and audience of the Gujarati shopping market in Alpha-One was most suited for Okhai. There were shops available on the first floor, but their rent was five times our turnover. It was not possible for us to rent it. Hence we rented an outlet on the third floor. Eighty percent of people who entered the store, ended up buying our product. After three years, now we feel the need to shift from the top floor to the second floor to attract more customers. The Okhai store at Ahmedabad won the best store award for two consecutive years for its overall performance, décor, merchandising and sales pattern. Over a thousand consumers were queried in a survey to ascertain their comprehensive opinion towards Okhai’s flagship store. It was evaluated on the basis of the customer’s perception towards the store and also on the sales generated in the last financial year.15 Dayamakumar elaborated: Since we are an NGO, operated through a trust, funding is a key challenge in opening retail stores directly. We choose to tie up with different partners and boutiques in various metro cities of India to sell Okhai products. We also sell Okhai products through our corporate network. So, keeping in mind our limited resources and money, we are planning to expand slowly. The Pune outlet of Okhai was launched in January 2014. The third store of Okhai, Okhai- Karigar started in June 2014 at Jamshedpur. It was a joint venture with Tata Steel that included products made by the rural artisans of Jharkhand. Okhai products were also available in multi-brand outlets of metro cities in India. Besides selling the products through the retail outlets, Okhai primarily sold its products in various exhibitions held in different cities via renowned NGOs. Pandya shared: Cash flow is vital to us, and thus, apart from exhibitions, we go to Tata group offices. It serves as a good market for us as we don’t have to spend much. If our sales person stays at a hotel, the entire earning at the exhibition might be spent in transport. If we have access to a Tata guest house, I prefer to make his staying arrangements there. Besides, we are also looking for collaborating with different NGOs from the Tata group itself. 15www.tata.com/article/inside/V2F8gdhMB!$$$!E=/TLYVr3YPkMU=(accessed on September 20, 2015)
  • 8. 8 of 15 IIMA/MAR0490 2. Online Portal16 In June 2014, Okhai’s e-portal was launched. Speaking at the launch of the website, Talwar quoted: It is an extremely positive development for Okhai and the members of the SHGs, who will now be able to witness their handicraft and its growing demand on an interactive online platform. By taking these applique handicrafts online, it will not only help in furthering the cause but also spread awareness about the traditional craft of this region, thus helping us to preserve a rich part of our cultural heritage. We aim to keep up with such positive developments and brighten the life of thousands of women from Okhamandal as well as the millions who've never been there. The portal had started showing its impact online as it is accessible 24*7, where people could browse, view and purchase the products anytime. Pandya added: Slowly and gradually Okhai’s portal is going to pick up popularly. We have also become active on Facebook. We want to push our portal rather than going on other online shopping sites. We prefer not to tie up with other e-sellers, primarily because our products are priced a bit higher as compared to products present on those portals due to the intricate handwork.” Was that a good idea? Alka shared: We need to ensure that a certain minimum number of pieces of each design and size are with them. On the e-commerce platforms, inventory is tied up and often left unsold which blocks money. For us, it is important to ensure the rotation of funds. If someone orders and we do not fulfill, it is not good for us and the e-commerce website as well. In our portal, products are linked up to our store. INCOME OF ARTISANS After successful completion of the training, the women received a card with a code number that recorded details of all the work done by them. The card recorded the payment status of each woman. The monthly income of artisans ranged between INR 500-5,000. It depended on the number of pieces prepared by the artisans, the time taken and the intricacy of the embroidery involved. The designing team decided the embroidery. The cost of stitching was communicated to each SHG leader by the production team before the distribution of work and the artisans negotiated the payment rate. COMPETING WITH COMPETITORS Fabindia17 and Biba18 were two important competitors of Okhai. Biba exclusively catered to the demand for female apparel and accessories. Fabindia produced diverse products like clothing for men, women and children, accessories, furniture, cosmetics and organic-food amongst others. Most of the competitors in the handicraft business usually operated through two different units. 16www.Okhai.org (accessed on September 20, 2015) 17 www.fabindia.com/ (accessed on September 20, 2015) 18 www.biba.in/ (accessed on September 20, 2015)
  • 9. 9 of 15 IIMA/MAR0490 Pandya explicated: Initially, we worked as suppliers to the key players in the market, who are now our competitors. We feel that the price is the primary differentiating criterion of Okhai with popular premium competitors. We purchase the raw materials from the same vendors, our material is also vegetable die block printed, and our product has more handwork than theirs. We tried pitching our products slightly higher, but it was not too successful. Also, some of our competitors have numerous stores. If some designs do not sell at one place, then they have the option to sell at some other store. But this is not so in our case; if our product doesn’t sell in our primary store, we can’t push it to other stores. Embroidery was a slow paced and skilled job and hence hand-made products were costly. To make the customers understand this was again an issue. Machine embroidery was faster than the hand work that artisans did. The local machine-made products which were available in the market at the extremely low prices also posed serious competition to Okhai. TRAINING PROGRAMS The parent trust TCSRD conducted the training programs at Okhai. The lead designer at Okhai identified the particular type of craft in which artisans were required to be trained. The artisans were then nominated for the training and taught the standard Indian cuts and fits of kurtas. Pandya added, “We identified that we need to increase the production of bed-sheets from 300 to 500 per month; thus we required 30 more women to do the applique work. Accordingly, TCSRD trained these people.” In 2008, Okhai sent 50 women to the reputed National Institute of Fashion Technology (NIFT)19 for training. Pandya shared: Getting them out of home to the stitching unit was tough, taking them from Mithapur to NIFT, Gandhinagar for three months was a difficult task. Training them helped us in ensuring quality cuts and stitching. One of the things that we learned was that our main competitors could make a kurta in 2.3 metres of cloth while we were using 3 metres. We realised that we were wasting a lot of material. As far as cutting is concerned, we are perfect. But, a lot of materials get stuck in inventory or work in progress; we are still trying to address these issues. OKHAI IMPRINTS An article published by Geetu Vaidh20 quoted: Empowerment enterprise, entrepreneurship, profit and annual turnover may be common sounding words in an urban set up and coming from a B-school graduate, but one does sit up and take note when the person using these is a simple tribal with not much education, and more so when the person happens to be a woman from one of the most backward areas in the country.But this is true in the cases of Ramiben and Laxmiben from the hinterland of Gujarat The women were proud to be associated with Okhai. It had become a status symbol for them to belong to the Okhai family. 19 www.nift.ac.in/ (accessed on September 20, 2015) 20 www.tribuneindia.com/2014/20140309/spectrum/society.htm (accessed on September 20, 2015)
  • 10. 10 of 15 IIMA/MAR0490 The Okhai website quoted,“Okhai brand has become a powerful statement by the women of Okhamandal villages over the years. A statement that empowers them, a statement that gives them and the region an identity, a statement that makes people notice this beautiful form of art and patronise it.” Ramiben, one of the Okhai artisans, shared, I have built a pucca house and educated my children from the income I got from Okhai. People approach me now and request me to advise them on improving their lives, and I get a lot of respect from the villagers. I have travelled to other places for exhibitions, even travelled to Bangalore alone. What I did not get within the four walls of my home, I have received from Okhai. It is my wish that my children, a girl and a boy, receive the best education. My husband also supports my view. We faced opposition from my mother-in-law who said it was a waste of money to educate our daughter. I replied that I would spend my own money on educating my daughter. THE WAY FORWARD Pandya shared: Okhai is like a start up with no funds. TCL initially gave us some seed capital to start, and it was an interest-free loan. We were supposed to return the money to them. Five years back the turnover of Okhai was about INR 2.5 million, and now it is around INR 10 million; the scope is still phenomenal. The model is now good enough to be easily replicated at different locations. Once the local trade/abilities of the artisans are identified, and its gradation is done, plans can be made and implemented efficiently. Is it the right time to expand Okhai’s product portfolio or not? Should Okhai be like Biba which solely focusses on female apparel or Fabindia which has diversified into apparel, furniture, eatables and other products? Where should Okhai position itself? Should it go in for marketing or not and how should it go about it? Is it appropriate to open more retail outlets or to promote the selling of Okhai products via exhibitions? What could be the strategy to deal with local and global competitors in the same field? Should Okhai continue making its products or should it take on the trading route? These were some of the significant concerns for Okhai. It had started exploring different locations and mediums for expansion. Jayant added: When I got to know that we have a target of INR 1 billion over the next ten years, I was nervous and doubtful. But Premal explained to me that after being in the market for so long, we had understood the whole business of this field. Now for expansion, we have to focus on increasing our outreach and adding more people. We have to develop our strategy accordingly. How can we improve our product and processes? Have we understood the market correctly or not? Are we selling the product at the right price? Are we able to deliver our product in time? These are questions that we constantly try to analyse to have a better understanding of this business; it also helps us to perform better.
  • 11. 11 of 15 IIMA/MAR0490 Exhibit 1(a): Okhai Logo 1(b) Display at ‘Okhai-Centre for Empowerment’ at Mithapur Source: Okhai Mithapur Office Exhibit 2: Tata Chemicals Society for Rural Development (TCSRD) Tata Chemicals Limited (TCL) set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980 to promote its social objectives for the communities in and around Mithapur, where its facility is located. This service was further extended to the communities in and around its Babrala and Haldia facilities. The Society works to protect and nurture the rural populations in and around TCL's facilities, and helps people achieve self-sufficiency in natural resource management, livelihood support and the building of health and education infrastructure. Taking into account the different geographical spread of the three regions and their individual subcultures, different agricultural, economic and development programmes have been implemented in these regions. Tata Chemicals Limited was one of the first organizations to hold an Impact camp, which was held at Mithapur in the year 1982, providing eye care to hundreds of patients at the Mithapur Hospital. Tata Chemicals Limited was also the first organization to run world’s first hospital on wheels – the Life Line Express, through Jamnagar district for the first time between November 21, 2004 and December 21, 2004. Source: TCSRD Website
  • 12. 12 of 15 IIMA/MAR0490 Exhibit 3: Okhai Revenue, In Indian Rupees(INR) Financial Year Turnover 2001-2002 1,34,000 2002-2003 1,64,000 2003-2004 3,40,000 2004-2005 6,00,000 2005-2006 9,02,000 2006-2007 14,25,00 2007-2008 23,35,00 2008-2009 21,09,00 2009-2010 36,00,00 2010-2011 42,91,00 2011-2012 2,889,463 2012-2013 57,83,715 2013-2014 60,27,647 Source: TCSRD and Okhai Annual Reports Exhibit 4: Comparative study of Mithapur, Okhai- Centre for Empowerment Balance Sheet (In INR) Year/Parameters 2011-2012 2012-2013 2013-2014 Total Liabilities/Assets 12,301, 467 1,24,42,268 1,31,77,666 Total Expenditure/ Income 5,714,790 64,90,420 84,19,312 Loan, received from TCL 1,500,000 15,00,000 15,00,000 Loan, received from TCSRD, Mithapur 3,200,000 32,00,000 32,00,000 Loan, received from TCSRD, Babrala NA 1,27,701 18,701 Source: TCSRD and Okhai Annual Reports 5(a): Present statistic of women artisans and staff at Okhai Locations No. of Women artisans No. of SHG No. of Permanent staff Mithapur(Gujarat) 300 23 8 Babrala (Uttar Pradesh ) 31 9 Nil Haldia (West Bengal) 16 3 Nil Ahmedabad studio NA Nil 13 Source: Okhai team
  • 13. 13 of 15 IIMA/MAR0490 Exhibit 5 (b): Map of various Indian places showing operational areas of Okhai Source: TCSRD 2011-2012 Annual Report
  • 14. 14 of 15 IIMA/MAR0490 Exhibit 6: Production Process at Okhai Source: Okhai Mithapur Office Exhibit 7: Depicting Female and Male Kurta Source: Okhai Website
  • 15. 15 of 15 IIMA/MAR0490 Exhibit 8: Porfolio of products at Okhai (FY15) Source: Okhai Website and Okhai Office No Category No Category No Category A Apparels B Home Furnishings C Lifestyle Accessories Women 1 Bed Cover Collection 1 Shopping /Jhola Bags 1 Long Kurta 2 Cushions 2 Purses 2 3/4th Kurti 3 Wall Hangings 3 Sling Bags 3 Top 4 Curtains 4 Mobile Pouch 4 Dupattas 5 Toran 5 Coin pouch 5 Shawls 6 Runners 6 Spec pouch 6 Stoles 7 Jewellery Pouch 7 Patiala Dupatta Set 8 Files/Folders 8 Patialas 9 Notepads 9 Salwars 10 Key rings 10 Leggings 11 Name tags Men 13 Laptop Bags 1 Long Kurta 14 Laptop Sleeve 2 Short Kurta 3 Ties