Kudumbashree Working Model

 Hello everyone,

I am Merin George, second year MBA student from Amrita School of Business. In this blog I would like to share some insights on supply chain learnings  on Kudumbashree in kerala

The kudumbashree working model is a highly recognised working model world wide.Even the people fron UNO has arrived inorder to learn about the kudumbasree and their working model. Kudumbashree is a neighborhood-based group network that works in association with self-governments for poverty destruction and women empowerment by encouraging women entrepreneurship. Kudumbashree means 'prosperity of the family' in Malayalam, the local language of the state. The goal of the mission is associated with a self-help group (SHG) model of empowerment of women to promote their broad range of entrepreneurial activities to make sure that the women should not be long-suffering beneficiaries of public help, but should be dynamic leaders in women- incorporated development strategies. The vision of Kudumbashree aims to transform microfinance superiority security version into a more all-inclusive model of local economic development.

Kudumbashree has various micro enterprises which is in the production of bags,PPE kits,masks bags candles and also food products.The food production activities  in which these people involve are mainly masala making,agricultural farming, amritham mix making, and canteen.In many districts of kerala there are kudumbashree units which are into running of canteen and hotels.In kudumbashree women can individually and also in group wise get into any enterprises. They will be awarded loans and financial and market support. In kudumbashree the people will make the products and bring into the CDS offices and they will organize various Onam chandha,Masa chandha etc and will sell their products.The help from Nagara sabha and local governmental bodies are there for setting up the markets.Raw maerials are purchased from local shop.They   buy the raw materials from the local retail shop.  pickle making,snack making ,papad unit, catering unit also powder unit etc. The kudumbasree unit organizes masa chandha and onam chandha where all the units which are functioning under this unit bring their products and sell their produce. During onam chandha and masa chandha the units will sell their major produce. All types of products will be available in this chandha.

Current value chain for masala curry powder units

There are many high turnover units in kudumbasree which are branding their products in quality packets which are branded under kudumbasree unit.some of them are picking and packing these products in packets and selling it to local retailer shops.For the selling they are only using their own outlet and Kudumbashree monthly markets.they are procuring the food products locally.they are selling the products in local market as they have the fear to face competition of the market.Location of cheap and good quality raw material is crucial for the success of an enterprise. It was observed that in the majority of the enterprises, women preferred to obtain raw materials from the nearby markets as this often saved them from the trouble of travelling alone to long distances to acquire cheaper raw materials. Purchasing expensive raw materials often led to dwindling of incomes .The inability of the women entrepreneurs to get access to cheap sources of raw material, increases the price of the products and makes it uncompetitive in the market and this is especially true of enterprises working in the manufacturing sector.” Kudumbashree, Gram Panchayat and Rural Development Department are the top three funding agencies for micro enterprises in Kerala but the support extended by these agencies to market the product were found to be minimal. As a result, women entrepreneurs were forced to sell their products in the local market or the other neighbourhood groups. 

Value chain for the flour mill products

Value chain analysis for paddy cultivation

The kudumbashree units in palakkad,malappuram etc are having collective farming where they produce rice and other vegetables. The women in kudumbasree are also organizing farmer producer company.there are 4  farmer producer  company under Kudumbashree out of which thennala farmer producer company is great success with good turnover and also they have products branded under the FPO.

The places where the kudumbasree people sell their goods

1. Local Markets

One of the earliest steps taken by Kudumbashree was to organize weekly/monthly market fairs at the local self-government level. These markets are considered to be beneficial to bring together small producers in a particular panchayat and provide them with a good exposure to customers. It also proves to be a learning platform for the entrepreneurs to understand why products sell and what needs to be done to make their products marketable. The MECs are in charge for the conduct of these markets. They are entrusted with the task of informing the entrepreneurs, organise the fairs, help women to set up stalls and assist them in pricing of the products etc.

2. Fairs & Exhibitions

To increase the marketability of the Kudumbashree products, the entrepreneurs are also engaged mto participate in market fairs organised at the state or the national level. Women entrepreneurs were also found to be participating in international fairs such as the Dubai Shopping Festival.

3. Homeshop

Homeshop is a direct marketing scheme under which a member from each ward turns her residence into a Homeshop. The home shop owner, after storing selected products, acts as a marketing agent of the home shop. She takes the items to customers. This not only ensures that the entrepreneurs are saved from the trouble of marketing their products but it also provides a livelihood opportunity to people involved in the marketing of the product

4. Nano market

They rent some shelf of the stores and super market and sell their products 

Kudumbashree is a great model for eradicating poverty and also instilling women empowerment. Empowering women means enabling women to participate completely in economic life over all segments through all levels of essential economic activities, like building strong economies; establishing more stable and just societies; achieving internationally-agreed goals for development, sustainability, and human rights; improving the quality of life for women, men, families, and communities; and propel business operations and goals. One of the principles of women's empowerment says implement enterprise development, supply chain, and marketing practices that empower women .

reference

https://www.kudumbashree.org/