KARNATAKA

Strategic business units help boost KHDC sales

HUBLI Oct. 13. The Karnataka Handloom Development Corporation (KHDC) has formed strategic business units for boosting retail sales through its network of 51 showrooms.

Madan Gopal, Managing Director of the corporation, told The Hindu here today that the strategic business units had been formed on the basis of the profit centre concept, fixing realistic targets and linking expenditure to performance.

The 51 showrooms, including 11 located outside the State, had been categorised into nine clusters and assigned targets. Incentives were fixed for personnel exceeding the target. This had resulted in the retail sales turnover going up to Rs. 11.40 crore for the six-month period ending September this year, as against Rs. 7.35 crore for the corresponding period last year, he said. The total turnover from retail, wholesale, subsidised sari-dhoti scheme, and supplies under the Vidya Vikasa Scheme for the first six months of the current financial year had touched Rs. 50.22 crore, as against Rs. 30.05 crore for corresponding period the previous year. The turnover for the first six months of this year had exceeded the annual turnover for the previous year, which stood at Rs. 49 crore. The product mix was being diversified with the corporation entering into long-term agreements with the National Institute of Design, National Institute of Fashion Technology, and private enterprises for developing market-oriented designs.

Mr. Gopal said measures had been proposed to restructure and strengthen the KHDC, and they were being considered by the Government. The measures included financial assistance of Rs. 40 crore for margin money, which was to be equally shared by the Centre and the State Government, conversion of the outstanding loan and interest liability to the State Government as equity, and provision of financial support for right-sizing the organisation by going in for a voluntary retirement scheme for staff identified as surplus.

The Bangalore office of the corporation was moving into its own premises in the Kallhalli Complex near Ulsoor Lake, which would be inaugurated by the Chief Minister on November 1.

Under the subsidised sari-dhoti scheme, the KHDC had introduced new items such as coloured bedsheets, woven towels, polyester blended shirting, and polyester printed saris. Karnataka, according to Mr. Gopal, was the only State to supply such wide variety of fabrics to be distributed through fair-price depots at subsidised rates to people living below the poverty line.

Recommended for you