Value Chain Analysis of Benarasi

Saree Industry in Mirpur

(Submitted in partial fulfillment of the requirement of BBA Program)

SUPERVISED BY PREPARED BY
Dr. MD. Noor Un Nabi Sami-Ur-Rashedin
Associate professor ID-060347
Business Administration Discipline
Khulna University
Khulna
About the study

oThe study was interesting and insightful

oIt was challenging
oThere were many opportunities for learning and
applying the knowledge I gathered during my 4
years academic life in Business Administration
Discipline.

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Industry in Mirpur
PRESENTATION OUTLINE
Background of the Mirpur Benarasi Saree Industry

Current condition of the Benarasi Saree Industry in Bangladesh

Objective, Limitations and Scope of the study

Methodology

Conceptual framework SNA

Value Chain of the Mirpur Benarsi Saree Industy

Condition of the Backstage of the Mirpur Benarasi Saree Industry

Social Network of the Handloom Owners of the Mirpur Benarasi
Saree Industry
Conclusion
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Industry in Mirpur
INTRODUCTION
Background of Current
the Mirpur condition of Objective of
Benarasi Saree the Benarasi the study
Industry Saree Industry
in Bangladesh

Methodology Scope of the Limitations of

study the study

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Background of the Mirpur Benarasi
Saree Industry
-The origin of Benarasi
Saree is a northern city -After the separation of
of India called Banaras. India and Pakistan, -The handloom were
Muslim community of made by wood,
-Dhaka set up it’s own Banaras came to this bamboo and small
Benarasi industry in part with there
1930s metal parts. To run the
hanldlooms. looms human labor was
used.
-Main outlets were in -They set up Benarasi
Islampur, Sadarghat industyr in -This process is still
market and old town Mohammadpur and same
Mirpur area

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Current condition of the Benarasi
Saree Industry in Bangladesh
The price of raw
In 2006 Bangladesh Tant materials is still soaring,
Board allocated Tk 45 government has no
-The Benarasi workers of marketing policy to
lakh for 249 looms at
Dhaka city are mostly export Benarasi abroad
nominal interest rate for
concentrated at the section and the workers are
distribution among the
No-10, No-11, No-12 of simply plunging into the
weavers.
Mirpur. black hole of poverty
-However, the fund did not
-According to the BHB and
reach the genuine Benarasi
Benarasi Palli Owners
craftsmen
Association at present there
-benefited many non-
are around
craftsmen (internal
1000 owners
migrants) who used the
10,000 weavers
low-interest loan to set up
25 designers
looms there.
25 color masters
5000 support staff Value Chain Analysis of Benarasi Saree
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Industry in Mirpur
Objective of the study

THE REPORT IS PREPARED TO SERVE THE

FOLLOWING OBJECTIVES

Draw a value chain map of the Mirpur Benarasi saree

Industry
Understand the current condition of the backstage of
Benarasi saree industry in Mirpur.
Understand the social network of the handloom
owners

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Industry in Mirpur
SCOPE OF THE STUDY
High profile stakeholders could not be reached.
Producers from outside Mirpur could not be reached
Government officils/representative were not
interviewed

LIMITATIONS OF THE STUDY

Stakeholders outside the geographic area of my study
Withholding of information
Lack of education of the respondents

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Methodology

The report is prepared through a qualitative approach. To

understand the value chain qualitative approach was needed.
The data collection process was two staged:
STAGE ONE
Interviews on all type of stakeholders involved in the
industry

STAGE TWO
Interviews conducted on the handloom owners

The data were then analyzed to draw the value chain map and put
into Visualyer to find the social network
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Industry in Mirpur
Methodology (contd.)

DATA TO ANALYZE
Primary data- Primary data were collected from depth interviews
and questionnaires. The questionnaire was based on qualitative
research and social network literature
Secondary data- secondary data were collected from reports,
articles, research papers, newspapers and internet.

SAMPLE
-No fixed sample was selected as it was not known how many types
of agents will be found.
-After the value chain could be mapped, 35 handloom owners were
interviewed to understand the social network of handloom owners

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Industry in Mirpur
CONCEPTUAL FRAMEWORK SNA

Social Network SNA Software Metrics of Social

Analysis Network
Analysis

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Industry in Mirpur
Conceptual framework SNA (contd.)

SOCIAL NETWORK ANALYSIS

-A social network is a social structure made up of individuals (or
organizations) called "nodes", which are tied (connected) by one
or more specific types of interdependency, such as friendship,
kinship, common interest, financial exchange, dislike, sexual
relationships, or relationships of beliefs, knowledge or prestige.
-The nodes to which an individual is thus connected are the social
contacts of that individual

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Industry in Mirpur
Conceptual framework SNA (contd.)

SOCIAL NETWORK ANALYSIS SOFTWARE

-SNA software is used to identify, represent, analyze, visualize, or
simulate nodes (e.g. agents, organizations, or knowledge) and
edges (relationships) from various types of input data (relational
and non-relational), including mathematical models of social
networks. The output data can be saved in external files. Various
input and output file formats exist.

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Industry in Mirpur
Conceptual framework SNA (contd.)

METRICS (MEASURES) IN SOCIAL NETWORK ANALYSIS

SNA software provides us with many components which can be used
to analyze the network.

Betweennes, Bridge, Centrality, Centralization, Closeness, Clustering

coefficient, Cohesion, Degree, Density, Flow betweenness centrality,
Eigenvector centrality, Local bridge, Path length, Prestige, Radiality, Reach,
Structural cohesion, Structural equivalence, Structural hole

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Industry in Mirpur
FINDINGS AND ANALYSIS

Value Chain of the Condition of the Social Network of

Mirpur Benarsi Backstage of the the Handloom
Saree Industy Mirpur Benarasi Owners of the
Saree Industry Mirpur Benarasi
Saree Industry

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Industry in Mirpur
Value Chain of the Mirpur Benarsi
Saree Industry

Value chain
is a physical representation of the various processes that are involved in
producing goods (and services), starting with raw materials and ending with
the delivered product.

Porter’s Value chain

distinguishes two important elements of modern value chain analysis.
-inbound logistics, operations, outbound logistics, marketing and sales, and
after sales service
-strategic planning, human resource management, technology development
and procurement

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Industry in Mirpur
Value Chain of the Mirpur Benarsi
Saree Industy (contd.)
Porter’s Model was not used in determining the value chain
of Benarasi saree industry in Mirpur because of the
informality that persists in the industry

Rather, the study tried to find the links from buying raw
materials to purchasing a saree. Then the links were
connected to draw the value chain.

To find the links and to connect them, depth interviews were

conducted among the stakeholders of the industry

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Industry in Mirpur
Agents of Benarasi Saree Industry in
Mirpur

Importer of raw silk and Jori Purchaser of raw silk and jori Twisting

Color master Tana maker Nuri maker Chumki/Puti seller

Designer Puncher Makers or Weavers Cutting

Polishing Shop owner Customer

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 RAW SILK
AND JORI
TWISTING
BUYER DESIGNER PUNCHER
(TYPE 1)

PURCHASER JORI/PUTI
OF SILK

CUSTOMER
POLISHING
CUTTING
HANDLOOM COLOR TANA Handlo SHOP
OWNER
OWNERS MASTERS MAKERS
RAW SILK
AND JORI
om
IMPORTER

BANA
MAKERS

Twisting

RAW SILK
BUYER NURI
(TYPE 2) MAKERS
Value Chain of Benarasi Saree Industry in
Mirpur
Findings from the Value chain of
Mirpur Benarashi saree Industry
oThe value chain is short if compared with other industries having same amount
of financial transactions.

oThis chain has very low time management issues. Meaning there is no issue of
having any kind of loss if any part of the chain becomes slow.

oAs the making of the sarees has a fixed system, no matter how fast the earlier
stages work, the making will take its fixed time.

oThere is an entry barrier in the backstage of the industry but there is no entry
barrier in the front stage of the industry.

oThe price of the major raw materials is controlled by only a few people which
ultimately impacts in increasing price of the sarees
Value Chain Analysis of Benarasi Saree
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Industry in Mirpur
Condition of the Backstage of the Mirpur
Benarasi Saree Industry
Lack of
Lack of weavers
weavers
During the
During the disastrous
disastrous condition
condition that
that prevailed
prevailed 7/8
7/8 years
years back
back many
many
weavers left
weavers left this
this profession.
profession. They
They are
are now
now doing
doing other
other works
works toto earn
earn
and livelihood
and livelihood andand dodo not
not consider
consider toto come
come back.
back.
Settlement problem
Settlement problem
Most of
Most of the
the backstage
backstage people
people are
are from
from Bihari
Bihari community.
community.
They can’t
They can’t expand
expand their
their business.
business.
The allocated
The allocated land
land wasn’t
wasn’t handed
handed over
over to
to them
them and
and still
still under
under red
red tape.
tape.
Low wage
Low wage
The workers
The workers of of this
this industry
industry are
are paid
paid low.
low.
Can’t manage
Can’t manage to to save
save anything
anything
Poor work
Poor work condition
condition
Workplace is
Workplace is very
very small
small and
and congested.
congested.
Have to
Have to work
work more
more than
than 12
12 hours
hours aa day
day
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Industry in Mirpur
Condition of the Backstage of the Mirpur
Benarasi Saree Industry (contd.)
Unpleasant Owner-worker
Unpleasant Owner-worker relationship
relationship
Owners don’t
Owners don’t pay
pay fair
fair wages
wages
Good work
Good work is
is not
not appreciated
appreciated
Inconsistent income
Inconsistent income
Income is
Income is not
not same
same around
around the
the whole
whole year
year
No trade
No trade union
union for
for workers
workers
Workers can’t
Workers can’t raise
raise voice
voice against
against injustice
injustice
Don’t have
Don’t have aa bargaining
bargaining power
power for
for fixing
fixing products
products price
price
Lack of
Lack of promotion
promotion
No steps
No steps from
from the
the government
government to to promote
promote this
this industry
industry
No private
No private organizations
organizations to
to promote
promote this
this industry.
industry.
Only the
Only the Boutique
Boutique houses
houses are
are promoting
promoting this
this products
products
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Industry in Mirpur
Condition of the Backstage of the Mirpur
Benarasi Saree Industry (contd.)
Increasing raw
Increasing raw material
material price
price
Price of
Price of raw
raw silk
silk and
and jori
jori increases
increases every
every year
year (or
(or every
every months)
months)
e.g. per
e.g. per kg
kg raw
raw silk
silk price
price now
now 5200
5200 BDTBDT which
which waswas 2700BDT
2700BDT lastlast year
year
Availability of
Availability of cheap
cheap Indian
Indian Benarasi
Benarasi Sarees
Sarees
Indian sarees
Indian sarees areare cheap
cheap but
but design
design is
is better
better
Those are
Those are made
made in in power
power looms
looms which
which reduces
reduces labor
labor cost
cost
Indians use
Indians use native
native raw
raw materaial
materaial which
which saves
saves them
them import
import dutyduty
Increasing Benarasi
Increasing Benarasi production
production in in other
other areas
areas
Manikganj, Sirajganj,
Manikganj, Sirajganj, Tangail,
Tangail, Ishwardi
Ishwardi etc.
etc. are
are producing
producing lowlow quality,
quality,
low cost
low cost Benarasi
Benarasi saris
saris with
with reduced
reduced labor
labor cost
cost and
and sub
sub standard
standard fabric
fabric
High profit
High profit margin
margin taken
taken by
by the
the shop-owners
shop-owners
Shop owners
Shop owners sell
sell sarees
sarees at
at aa much
much higher
higher price
price than
than what
what they
they pay
pay to
to
the producers
the producers
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Industry in Mirpur
Social Network of the Handloom Owners of
the Mirpur Benarasi Saree Industry

To prepare the social network of the handloom owners of Mirpur

To prepare the social network of the handloom owners of Mirpur
Beanrasee saree industry 35 handloom owners were interviewed
Beanrasee saree industry 35 handloom owners were interviewed
with a structured questionnaire.
with a structured questionnaire.

Through the questionnaire, the persons with whom handloom

Through the questionnaire, the persons with whom handloom
owners communicate (for their business purpose) was found.
owners communicate (for their business purpose) was found.

As the nature of their business was same, these 35 handloom

As the nature of their business was same, these 35 handloom
owners’ answers provided with the social network that can be used
owners’ answers provided with the social network that can be used
to understand the nature of all handloom owners social network
to understand the nature of all handloom owners social network
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Industry in Mirpur
Social Network of Handloom Owners of bBenarasi Saree Industry in Mirpur

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Industry in Mirpur
Social Network of the Handloom Owners of
The Mirpur Benarasi Saree Industry
Total links: 354

Male 82.377% Female 10.656% Store 5.328% Unidentified 1.639

Profession Percentage
Shop owner 6.148% Weaver 31.967%
Tana fixer 3.689% Nuri maker 7.377%
Raw Jori supplier 2.049% Chumki/Puti 4.098%
Bana maker 4.098% Cutting 4.508%
Color Master 4.098% Handloom owner 8.607%
Designer 4.508% Polishing 2.869%
Machine fixer 4.098% Tana Maker 6.967%
Raw silk supplier 1.230% Thread supplier 2.049%

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Social Network of the Handloom Owners of
The Mirpur Benarasi Saree Industry
Degree Centrality:
Node Degree InDegree OutDegree Degree InDegree OutDegree
AVG: 2.410 1.205 1.205 0.992% 0.496% 0.496%
STD: 3.704 1.020 3.851 1.524% 0.420% 1.585%
MIN: 0 0 0 0.000% 0.000% 0.000%
MAX: 25 9 23 10.288% 3.704% 9.465%

Closeness Centrality (for undirected graph):

Node Farness Closeness Normalized Closeness
AVG:1041.648 -0.003 219.146%
STD: 192.783 0.143 2161.900%
MIN: 0.0 -1.000 0.000%
MAX: 1266.0 1.000 24000.000%
Maximum possible closeness: 0.004

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Social Network of the Handloom Owners of
The Mirpur Benarasi Saree Industry

Betweenness Centrality (for undirected graph):

Node Betweenness Normalized Betweenness)
AVG: 404.256 1.375%
STD: 1073.291 3.650%
MIN: 0.000 0.000%
MAX: 6654.732 22.633%
Maximum possible betweenness: 29403.0

Positions of the agents in 35 handloom owners social network

And
Opinion leaders among agents in 35 handloom owners social network
are provided in the appendix of the report.

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Industry in Mirpur
CONCLUSION
oBenarasi industry has overcome the disaster that
it faced around 7 years back
oDemand for Bangladeshi Benasari saree is
increasing
oProper steps need to be taken as early as possible
oIntense value chain analysis can provide with more
insights
oSubsequently a more deep, broad and updated
social network analysis of the industry can help
provide with information necessary to develop this
industry

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Industry in Mirpur
THANK YOU

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