PBQIILS.QE- SAMQ.mOKA AND THE ORGAN l SATIQNS-JMBEBSIHR1L,
2.1 Profile of Gadag Taluka.
2.2 Infrastructure Facilities at Gadag.
2.3 General Information about Gadag Taluka.
Organisations understudy.
2.4
8 2.1 PHOFILK OF GADAG TALUKA
Gadag taluka comes under Dharwad district in the Karnataka State. Gadag is the largest taluka in the district with the population of 2,54,000. Commercially gadag taluka is the centre of a large and populous area whose agricultural and industrial products are marketed in the Gadag market area. Traditionally, Gadag is large centre of cotton trade and it's cotton market is one of the largest in Karnataka State. There are four large cotton spinning mills, twenty two oil mills [apart from numerous non-power operated ghanis], five roller mills, 30 chakki mills, two large biscuit factories [addition to 16 smaller factories manufacturing bread and biscuits], sixteen cotton ginning factories, 8 cotton pressing factories. More than 80 printing presses;
several units making printing inks, over 2700 handlooms, 600 powerlooms of which three are large, and over twenty small steel furnitures and roller shutters manufacturing units and several foundries in Gadag taluka. Further, leather footwear and ready-made dresses manufactured by local cottage units enjoys v a wide market throughout the state, recently an industrial estate has also come up having 100 industrial units at Gadag taluka. These enterprises provide remunerative employment and enjoy a ready market in the surrounding area. There is considerable scope for development of many large noale an well as small scale industries in the Gadag taluka.
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movement in India, the first co-operative society in the country was set up in Kanaginhal (Gadag taluka) and the first co-operative Urban Bank was organised in Gadag - Betageri town. The Gadag Co-operative Cotton Sales Society, the Dharwad Dist. Coop Oil Seeds processing factory and the Farmer*3 Co-op. Marketing and processing of agricultural produce. In addition Gadag taluka has the distinction of organising some of the best co-op. units engaged in producing ootton yarn, cattle feeds etc..
2.2 INFRASTRUCTURE FACILITIES AT GADAG TALUKA
Gadag taluka enjoys a well developed educational and technical infrastructure. There are several degree colleges providing instruction.in arts, commerce and science courses, engineering college and polytechniques providing instructions in variety of medical and engineering course (including chemical, textile engg. etc.). Composite and other junior colleges providing the Pre-University Course and many vocational courses; Institutions giving instructions in Fine arts, and a network of tailoring, typewriting and short-hand instructions with many High schools and Primary schools. In addition Basal mission has established it's Agricultural Training institute premier centre for training in modern techniques of agriculture and dairying at Gadag. There are eight Vidhyarthi Nilayas and hostels, providing boarding and lodging facilities to the students. The banking facilities here are also well developed with a network of branches of
operating in Gadag taluka.
2.3 GENERAL INFORMATION ABOUT GADAG TALUKA
1. Population
2. Density per sq.km.
3. Geographical area in hectres
4. Net area of cultivation in hectres 5. Forest land in hectres
6. Rain fall in mm.
7. Post offices
6. Telegraphic offioes 9. Telephone offices
10.INDUSTRY Textile
H^dloom
11. EDUCATION Balwadis
Lower primary Higher primary
High school & Junior Colleges Technical & General Colleges 12. HEALTH
Hospitals Health units
Family planning centres
2,54,499 232 1,09,751 97,966 1,749
637.7 44 24 1.002
34 2,498
18 63 85 6 6
3 5 4
13.BANKING
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13. BANKING
Co-operative societies Banks nationalised Co-operative banks
14. CROPS GROWN : Cotton, groundnut, sugercane, jawar, tur & gram etc.
2.4 ORGANISATIONS UNDERSTUDY
2.4.1 THE GADAG CO-OPERATIVE TEXTILE MILL LTD.
INTRODUCTION
The mainstay of Gadag area economy is cotton. It reflects the culture and tradition of the area. Prosperity
_ %
*v
and well being of the area are solely dependent on the cotton cultivation and cotton trade.
Gadag is called the CRADDLE OF CO-OPERATIVE MOVEMENT.
The first primary Agricultural Co-operative Society in our country, was registered in 1904 at Karnataka in Gadag taluka.
In the marketing of cotton, commission agents with their local associates, were exploiting the farmers, by purchasing cotton at low prices. To prevent the exploitation of the cotton growers, the first co-operative marketing society in India, i.e. "THE GADAG CO-OPERATIVE COTTON SALE SOCIETY LTD., GADAG" was established at Gadag in the year 1917. Although this helped the growers in getting fair prices at times, the traders refused to buy cotton leading to a stalemate. In this
situation, the first grower's co-operative spinning mill vas set up on 8th July lc»?2 due to the dynamic efforts of eo-
238 21 10 wheat,
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operative leader Shri. K.H.Patil - Honorable Minister for Revenue and Labour, Govt, of Karnataka.
2.4.2 MEMBERSHIP AND SHARE CAPITAL
1) Total members as on 31/7/90 .. 2,781
2) Authorised Share Capital .. Rs. 2,41,000/-
3) Paid up .. Rs. 2,41,000/-
of which following are the catagorywise positions as on 31/7/1990
i> * A* Class <Individual/Co-operatives) Rs.
ii) *B' Class <K. A. I.C) Rs.
iii) Class State Government Rs.
iv) 'D' Class, Nominal Members Rs.
v) >E> Class Mill Employees Rs.
49.40 Lakhs 15.00 Lakhs 66.39 Lakhs 00.07 Lakhs 00.01 Lakhs TOTAL RS.130.67 Lakhs 2.4.3 PROJECT COST
The total project cost was Rs. 220.00 Lakhs for the Spinning Mill of 25,056 spindles. The Government of India, after considering the project and feasibility of reports, granted the letter of Intent. The funds for the project were raised through the following sources :
i) Equity Contribution from Members Rs. 40.00 Lakh®
ii) Equity Contribution from State Govt. Rs. 80.00 Lakhs iii) Terra Loan from I.F.C.I. Rs. 100.oO nar.ns TOTAL RS. 220.00 Lakh';
This is the first Brower Co-operative Spinning Hill to get equity assistance front National Co-operation Development Corporation, Delhi.
2.4.4 OPERATIONAL PERFORMANCE
The Sadag Co-operative Textile Mill Ltd., ever since its inception in 1974, has made a significant progress, which can be seen fros the following table No. 2.1
(Rs . in Lakhs & Kgs in Lakhs)
Sr. No. Particulars 82-83 83-84 84-85 85-86 86-87 87-88 38-89 89-90
PRODUCTION
1 Cotton
consueed in
kgs 25.25 30.01 28.50 34.60 31.70 27.28 25.22 26.23 2 Value in Rs. 373.54 409.09 434.37 439.00 370.44 531.58 563.01 571.61 3 Yarn Prod
uced Kgs 21.33 24.95 24.01 29.17 25.93 23.88 21.70 22.45 CAPACITY
UTILISATION &
PRODUCTIVITY 4 Spindles
Utilisation 87.06 *84.24 85.27 85.81 82.80 84.59 85.31 88.55 5 Per spdl.
(prodn. con
verted 40s) 73.04 *71.04 76.46 83.25 81.33 79.45 83.00 80.62
* Shortfall due toi power shortage. The mill has its own captive generators capacity of 870 KVA at present. Mi 11 has proposed to instal 1 D.S. Set having capacity of 625 KVA by March 1990.
♦ The S.L.S.C has cleared this proposal.
SOURCES s OFFICE RECORDS.
Percentage wis shortfall in the utilisation of spindles from April*90 to July 90.
Sr.No. Particulars
1. Actual days worked 2. Spindles installed 3. Spindles available
4. Spindle shift worked on 8 hours basis
5. Spindle Utilisation % 8. Idle Spindles
REASONS
a. Cleaning, Gauging & Overhauling 2.56
b. Repairs 0. 45
c. Change of Counts 0.19
d. Shortage of Back process —
e. Workers absenteeism 9.55
f. Power failure 3.89
g. Miscellaneous 1.28
h. TOTAL (a to g> 17.92
% of shortfall
121 (363 shifts) 25.056
90,95,328
74,65,004 82.08
17.92
15 2.4.5 COTTON PURCHASE SYSTEMS AND ECONOMIC BENEFITS TO
MEMBERS :
The Cotton purchase policy of -the mill is designed in such a way so as to provide incentive price to the cotton Growers. The mill purchases its cotton at the open auctions held by Co-operative Cotton Sale Society at Gadag and T.A.P.C.MS. of Annigeri, Navalgund, Hubli, Savanur, Kundgol, Hirekerur, Ranebennur and Ron Etc., The cotton brought in these markets is graded by the APMC Agricultural Departments. Around 27 growers members and also 10,200 other cotton Growers derive significant economic benefits from the
mill. These are : <
i) The rates offered from cotton by the Mill in the open auctions at the marketing societies are generally higher than the rates available to the farmers at Auctions carried out at the premises of Private commission agents. These vary from time to time and price difference is in the range of 5 to 40* quintal depending on the market conditions.
ii) A price incentive of Rs. 50 to Rs. 100 per quintal over the market rates is given to every member linked to the
share value of Rs. 100/-
iii) Member’s cotton is ginned and converted into yarn on behalf of them and after deduction of conversion edits*
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the profits are passed on to the members concerned.
From 1982-83 onwards members availing of this scheme got Rs. 150-00 per quintal after sale of yarn.
iv) One free bardan (Gunny bag for cotton) worth of Rs. 40/- to Rs. 45/- linked to the share value of Rs. 100/- is given as incentive to members to deliver the cotton to the Mill/Marketing Society.
v) Extension advice to improve cotton production is given by Agricultural Science Foundation established by the Mill. The mill has been arranging a workshop/seminars by Agri. experts for the benefit of members. Thus mill has taken oare of cotton development in particular and agricultural development of this area in general.
2.4.6 FINANCIAL RESULTS
The mill has been working in profits continuously from the second year of its production. The mill has invested, out of its profits in the reserves and other funds to the extent of Rs. 512.04 Lakhs upto July 90. It is significant to note that the mill has redeemed Rs. 50.00 Lakhs Share Capital to the State Government. The mill has also refunded the entire I.F.C.I. Term loan of Rs. 100-00 Lakhs alongwith interest accrued thereon. The position is depicted in the following table No. 2.2.
Table No.2.2
PARTICULARS 1973-74 1986-87 1987-88 1988-89 1989-90 Rs. Percent Re. percent Re. percent Re. percent Re. per.
A) SHARE CAPITAL
Meebers 34.41 31 48.55 52.6 58.94 57.40 b 1 * 1 2 58.28 ■vQ <1 CD 56.48 6ovt. 83.75 69 43.75 47.4 43.75 42.60 43.75 41.72 o • 00
43.52 TOTAL 121.16 100 92.3 100 102.69 100 104.87 100 116.16 100
SOURCE » OFFICE RECORDS.
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The Mill has obtained a Loan of Rs. 49.53 Lakhs in 1982- 83 and 1983-84 and 1985-86 for purchase of Tandem Cards and New Blow Room lines to improve the production, productivity and quality. As the First phase of Modernisation Eight Tandem are already working. Organisation has refunded Rs.
47.23 Lakhs to the Banker leaving the balance of Rs. 2.30 Lakhs only.
2.4.7 MODERNISATION PROGRAMME :
The mill started functioning from 1973 and after a period of 16 years there was a need for upgrading the technology and improve the productivity. Keeping this in view, the management proposed a modernisation programme at a cost of Rs. 327 Lakhs of which 224 lakhs has been sanctioned by Financial Institutions. The balance Rs. 133 Lakhs will be met by Internal resources of the mill. The project which consists of latest carding machines and Auto winders of sophisticated technology, has been cleared by S.L.A.C.
Orders have been placed for all the machineries and so far Organisation has spent Rs. 86 Lakhs towards this programme.
I.F.C.I. has provided Rs. 85 Lakhs as first installment. By implementation of this project, the productivity will be increased. The quality of the product will be competitive one. Apart from this, the mill has installed one Open End
Contd..18
18 Spinning machine which is the latest technology in Spinning which will help utilising the soft waste generated by the mill resulting in better realisation value.
2000 M. T. Capacity godown is under NDCC III Project has been sanctioned and completed at the project cost of Rs.
13.18 Lakhs. This is being utilised 100%.
2.4.8 MARKETING OF YARN :
The mill manufacturers 10s, 14s, 20s, 30s, 32s, 34s, 40s, 60s, 80s, 100s, 2/20s, 2/40s, 2/60s, 2/80s, and 2/100s etc., in the form of Hanks as well as Cones as per the Market demand. Sale of Hanks yarn and Cone yarn forms 66% and 34%
respectively. The mill fulfilled the Hank yarn obligation stipulated by the Textile Commissioner, Govt, of India. The daily production of yar in about 7000 Kgs and the working is round the clock, no weekly holiday. Preference in the sale of yam is given to Weaver Co-operatives and their Apex organisations and Handloom Development Corporations and after meeting the needs, the balance is marketed at the most favorable rates. Export of yarn to countries like Belgium, Bangladesh, Italy and other European countries has touched a new high of 1.94,522 kgs.
*»
2.4.9 LABOUR WELFARE :
The mill has provided gainful employment to 700 regular employees on a three shift, baeie. The employees are given Bonus at 20% am-" illy and residential accommodation on nominal rent on site, besides the employees are given
19 concessional transport facilities from Gadag to Hulkoti.
They are also members of Employers Credit Co-operative Society for seeking loans etc. for productive purposes.
CONCLUSION :
As per the Tentative Balance Sheet as on April 90 to 31st March 1991 the mill has gained a net profit of Rs.
1,17,40,124-89/-
2.5 THE FARMERS CO-OPERATIVE SPINNING MILL LTD.
2.5.1 INTRODUCTION :
The Malaprabha project has been completed and with it, the irrigation facilities became available to the vast acerage of Agricultural Land in Talukas of Gadag, Navalgund, Nargund, and Ron, helping increased cotton cultivation.
Further, the above project brought an additional 50,000 hectares of lane under irrigation, rising the prospects of growing superior Hybrid varieties of cotton such as DCH-32, Varalaxmi, etc., on such a larger scale than hitherto existed. Thus, the total output of cotton in this area has reached a new peak.
However, the Farmers could not market their increased harvest at a satisfactory and remunerative price. They critically felt the necessity to find an outlet for their Bumper crop. At this juncture, the farmers rallied under the leadership of Shri K.H. Patil, to promote and establish
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another Co-operative Spinning Hill to spin and convert their produce into yarn, which in turn would fetch them a value added return. Thus, under his dynamic leadership this industrial venture under the name of "THE FARMERS CO
OPERATIVE SPINNING HILLS LIMITED, HULKOTI" was Registered on 29th October 1979.
1. Name of the Society
2. Registration no. and date
3. Area of operation
4. Members
5. Paid up share capital as on 30/6/90
from members from government 6. Buildings
THE FARMERS CO-OPERATIVE SPINNING MILLS LIMITED, HULKOTI.
GRBG/4688/29/1979- 29/10/1979
Gadag, Navalgund taluka in Dharwad district.
1822.
Rs. 44.92 lakhs Rs. 344.93 lakhs
Worth Rs. 1.10 crores accommodating plant & machinery under project.
2. Raw material godown to store about 10000 bales, one workshop, Canteen and Creche. Having 2000 M.T.
capacity godown under NCDC III project which is nearing completion.
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Total project cost of the new ventures was Rs. 856.00 lakhs.
The funds for the project were raised from the following sources -
THE SOURCES OF FINANCE Rs. (in Lakhi
1. Members Share Capital 45.00
2. Government Share Capital 339.00
3. Internal accruals 10.00
4. Central subsidy 15.00
5. Term loan 403.00
6. D.P.G. & others 44. 00
' TOTAL 856.00
THE PROJECT COST
1. Land 4.00
2. Building 105.30
3. Plant & machinery 513.82
4. Consultancy fees 0.50
5. Miscellaneous fixed assets 118.16
6. Stores & spares 9. 12
7. Pre-operative expenses 42.34
8. Contingencies 0.00
9. Margin money 62.76
TOTAL e&a.oo
22 2.5.2 PROFILE
The Hill has spindleage of 25,920. It is equipped with the latest textile machinery available in the country, manufactured by M/s. Laxmi Machine Works Ltd. Coimbatore, in collaboration with the world renowned Sp[inning Machinery Manufacturers M/s. J.J. Reiter & Co. of Switzerland.
The Aerofeed system of converting raw cotton into sliver in continuous process is a salient feature which has reduced the manpower requirement considerably.
Further, in the list of machinery, the inclusion of the latest G5/1, model ring spinning machine having 846 high speed spindles each, against the older version of only half the above spindleage has also made it possible to spin high quality yarns more economically which are vary much in demand and well appreciated in domestic as well as foreign markets.
During the years 1986-87 and 87-88, the mill exported yarn to the West European countries worth Rs. 200.00 lakhs.
The mill has also Textile testing and Research Laboratory which tests cotton materials from fiber upto the fabric the testing facilities are used, for routine and scientific analysis of cotton,finished products and controlling processing parameters, for the benefit of the farmers,*' consumers, and bulk transacting agencies such as, the Cotton Corporation of India, the Karnataka State
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2.5.3 HUMAN RESOURCES AND WORK FORCE
In this industrially backward area, with the population purely from agricultural background, it has been extremely difficult to get skilled and experienced workforce for operating the sophisticated machinery. To meet extra
ordinarily situation, the management embarked upon a novel method to take advantage of the comparatively idle and untapped resources of human work force, by educating them and putting them through a well organised training scheme.
* Experienced lady teachers with kintergarten training were recruited and trained in the proper methods of machinery operations in the various production departments under expert guidance of trainers from All India Federation of Co-operative Spinning Mills.
Classroom and shop floor training were imparted to the comparatively uneducated and backward woman trainees recruited as future operatives. With the vigorous and timebound programme, it was possible for the trainees to acquire the requisite skills, thus putting the plant utilization to satisfactory levels.
2.5.4 COTTON PURCHASE SYSTEM AND ECONOMIC BENEFITS TO THE FARMERS The cotton purchase policy of the mill is designed in such a way to provide price incentives to the grower members. The will purchases it’s cotton requirements at the auction held by the Taluka Marketing Co-operative open
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Societies at different centres such as Gadag, Annigeri, Navalgund, Hubli, Nargund, Hirekerur etc,.
■Jy.
The cotton bought by the farmers through the above marketing societies are graded by the experienced APMC graders. Our own experts also draw samples for scientific analysis in our lab., so that farmers are able to get better and appropriate prices for their produce.
To maintain the purity of cotton the promoters have decided to establish their own Ginning and Processing Unit in the Mill premises, whose estimated project cost is Rs. 79 lakhs. The proposal is waiting approval from the Registrar of Co-operative Societies, Banglore.
OPERATION PERFORMANCES Sr.
No.
Production Sales 1986-87 1987-88 1988-89 1989-90
1. Capacity utili sation % 67.37 72. 54 84.52 80. 64 2.
0
Cotton consumed in Lakh Kg. 27.99 21.07 14.80 12.72 3. Value in lakh Rs. 326.48 407.86 418.20 268.30 4. Production in Lakh Kg. 23.42 17.90 15.52 10.67 5. Value in Lakh Rs. 540.31 654.00 736.30 544.14
6. Yarn sales in Lakh kg. s 24.24 18. 77 16. 26 10. 04 7. Value in Lakh Rs. 550.04 650.88 733.59 495.76
SOURCE - Office records.
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OOUCLOSIOIl t?
Thus by promoting and establishing this co-operative industrial venture not only achieves the basic objectives of obtaining to it's agriculturist share holders a better return for their produce, but also serves the cause of finding employment to the inhabitants of this area.
