Khadi and village industries, which manufactures in addition to fabric and garment products ranging from honey to soaps and food to handicrafts, are clocking a double-digit growth.
Sales of khadi and village industries shot up by over 14 per cent to Rs 36,425 crores during 2015-16, while India’s top FMCG players reported a much lower sales growth.
Unlike FMCG firms that rely on their own plants for production, khadi and village industries products are manufactured by seven lakh privately-owned household units.
These units are funded through schemes such as the PM’s Employment Generation Program. A small part of the produce is sold through khadi boards and outlets owned by the Khadi and Village Industries Commission. The majority of products, which could be henna, papad or agarbattis, is directly sold through private shops.
Khadi fabric and garments sales witnessed a 29 per cent growth and crossed the Rs 1,500 crore mark for the first time. While the government is pushing khadi, there is also a change in the sales mix with readymade garments now accounting for around 45 per cent compared to nearly 30 per cent two years ago.
Air India has placed a Rs 8 crore order to source khadi products for kits given to first and business class travelers.