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Success Story of KVIC

A Record year for KVIC: Rs 10193.34 Crores Turnover, 14.39 % Growth and 66.45 lakhs New Jobs

The Soft Hearted Giant 
KVIC has now beaten the best among the consumer giants in size and proved that growth can be achieved by fulfilling the national goal of generating village prosperity sustained with productive employment. KVIC is now set on a trajectory of meaningful growth fulfilling its mission of generating gainful employment to thousands of people, especially in the rural sector.

The Mission Mode
KVIC, in its origin, was conceived as a Mission to preach and practise self-reliance. Years of colonial commercialism left the rural areas and villages empty of jobs and economic growth. The spirit of freedom movement and the Gandhian emphasis on people centered economic philosophy gave birth to KVIC as a real hope to millions in the villages. But the mission needed up-grading to meet the current social needs and economic reality. The modern commerce thrives on competition for the attention of the rural population for their products and appropriate their purchasing powers, though meager they are.

People as Market
The large consumer companies in the country, most of them offshoots of colonial establishment equate people with market for its products. However in many instances products are not meant to meet the living needs of the people but the profit target of the corporations. Many life style products that are contradictory to the local ethos and culture are imposed upon the population using high decibel advertising and “celebrity coolies” hired at exorbitant hourly rates to mislead the innocent population for product of false values, some even detrimental to the health and welfare of the rural values. In one instance a Rs. 200 crore worth and 60 year old “celebrity collie” is hired, with an exorbitant fee, to fight shamelessly, with 6 year child for a bottle of soft drink !!

Market for People
KVIC is conceived to “create market from the people and for the people and by the people”. A healthy market must create economic activity to satisfy the prime social objective of serving the community. Market can never be made a master; but should be the servant of the society; as a forum for creating wealth and achieving its fair distribution.

Product profile
The two key factors that facilitate rural revival are: the Product Profile and the Marketing Method.

The product profile must suit the need and life style of the rural population that will raise their standard of living and general well–being. Therefore the prime consideration to determine the product profile should be the concept of “The Value for Money”; i.e. products that deliver good value to the rural population at a price that are within the reach of their meager purchasing power.

The marketing method should be to educate the village masses on the real virtues of the product without indulging in hyper tones and promote consumerism. There are many demands for the limited resources of the rural population, like health, education, food, shelter etc. Therefore to adopt corruptive means of pushing products of little or no value to the rural population is a social crime. Unfortunately there is no mechanism to screen these activities in the interest of the society.

The KVIC philosophy is geared to ensure that products it introduces have the highest possible utility factor with the lowest possible price tag.

Employment and Efficiency 
Employment is the essence of living, but the success of economic planning is the creation of employment while promoting efficiency. The KVIC approach has proved that the rural industry can be modernized without loosing the sight of the need to promote efficiency.
KVIC has now associated with a number of major National Institutes like NID, IITs to design and to develop products and processes that suit the economic and social need of the general population of the country .

The new dimension that is being added is the link with South Africa to develop and promote Khadi and village products in South Africa and eventually the rest of the Africa eventually. This is in addition to the rising trend in export Khadi and Village industries products to various countries in Europe, America and Far East.

The Example 
“Growth with a human face” is the need of the time, especially for India where majority pf people live in the villages and live under the threat of poverty. Poverty erodes the foundation of democracy. It is not the one time handout that eradicates poverty but gainful employment, ‘as they are where they are’; situational development with local prosperity is the economic salvation of the nation.

KVIC with its pioneering surge in this area is now playing a prominent role, setting example for corporate philosophy for developing the rural economy, which is the backbone of the nation.

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