During the last financial year, sales of khadi products went up 33 per cent. Sales of village industries produce grew 24 per cent. There has been a huge demand for products such as honey, soaps, cosmetics, furniture and organic foods, which are produced by village industries and many of which are run by women. Domestic and international fashion designers prefer to work with sustainable and natural fabrics like khadi. Millennial shoppers are concerned about the clothes they wear or whether the products they use create jobs. Since khadi cloth is handspun, and its products are mainly created by artisans in rural areas, the brand invokes good vibes in consumers. The target is to double khadi sales by 2018-19.
A survey in 21 overseas markets revealed, khadi was the most recalled Indian brand, along with yoga. So the Khadi & Village Industries Commission (KVIC) is now looking at exports and aiming to make khadi an international brand. KVIC has an unique model, selling through government-owned stores as well as other retail outlets. In fact, KVIC is one of the most underrated companies in India and has IPO potential. While low production growth was a drag on sales in recent years, during the last fiscal khadi output grew by 31 per cent.
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