Royal silk weaves an unlikely PSU success story

Doyens of the Wadiyar family may or may not be decked head to toe in the iconic Mysore silk, which the house nurtured since the 1900s, at the nuptials of prince Yaduveer on Monday. But the brand's owner, a govt corporation, is fighting fakes to keep it alive
Outside the Karnataka Silk Industries Corporation (KSIC) office in the Public Utility Building on MG Road, sales persons press flyers and fevered pitches to passers-by about 'authentic' saris and soaps."Madam, we have original Mysore silk saris. Take a look," urges a person before retreating to her vantage point: a stool in the lobby .
Upstairs, KSIC officials wring their hands in frustration. "The fellow has a company name that is also similar to that of the Corporation. We have been fighting a case to stop misuse of the brand for 10 years," says D Basavaraj, chairman. Yet another case of fakes has come to their notice. "The shopkeeper tried to sell a sari for Rs 3,000. The buyer is from Karnataka and since he knows that our sari prices start from Rs 12,000, he came to us," he adds.
Mysore silk's charmed history, now more than 300 years old, is also about fighting fakes, ridding itself of its sick PSU-past, and repay a government loan. It is crucial that the Corporation fights its former dealers who continue to use the geographical indication (GI) Mysore Silk, which belongs to KSIC since 2005."Real growth started after we shut down the dealers. People have trust in us now," says a senior official.
It is this trust that has led to profits ever since restructuring started in 2003.Now there is enough money for the Corporation to repay the Rs 22-crore loan from the Karnataka government. "We will repay within a month," says Basavaraj.
Tipu's legacy:
Silk had a smooth beginning in Karnataka when sericulture started in earnest. It is said that Tipu Sultan, the charismatic Mysuru ruler, sent people to Bengal to study silk cultivation and processing in the late 1700s, writes RK Datta in his book Global Silk Industry. Mysore silk worm cocoons were nurtured by families in Mysuru, Chamarajanagar, Kolar and Ramanagara. The cottage industry, which was later hit by economic depression and flooding of cheap products by the British, came up for air only when Nalvadi Krishnaraja Wadiyar decided to set up a modern factory in 1912.
"The first spun-silk mill in India was established in Mysore and its output of raw silk is the highest in India," writes Vikram Sampath in his Splendours of Royal Mysore. The production took off during the 1940s when silk, churned out by 31 jacquard looms imported from Switzerland, was sent to make parachutes in the second World War. The power looms created smooth crepe silk and Mysuru became India's silk capital at the time of Independence.
The troubles started after the Mysuru factory and three other units came under the sericulture department post Independence. By the time KSIC was formed in 1980, labour troubles had intensified. "It was volatile and there was intra-union rivalry," recalls PS Sadananda Swamy, former GM of the 104-year-old Silk Weaving Factory.
By the time the unrest subsided in the 1990s, there was terror of a different kind. "Terrorism in Kashmir affected three of our units," says a senior official. While the factory and saris continued to make money, the spun silk yarn from the other units meant for carpet weavers in Kashmir started piling up. The Corporation slipped into the red.
Strong cuts:
The government offered to help but it laid down conditions. Salaries had to be cut by half while the management had to trim the bloated workforce. "There was around Rs 48 crore accumulated loss; GM to sweeper agreed to the cut," says Swamy.
Once the restructuring started in 2003, the sick units were shut down and around 1,500 employees were encouraged to opt for voluntary retirement. "Many chose VRS thinking that we may not survive," says Swamy. But what changed the situation was the then managing director P Vijayan's decision to get the ISO and the coveted GI certifications.
To achieve that, workers, who now consists of outsourced personnel, was trained and processes streamlined. High quality cocoons were procured while old machines were repaired. "Weavers too refined their work as they were not conscious of quality earlier," says Swamy.
N Nagaraj, a 57-year-old weaver at the factory, says it is tough to compete with 'computer-generated' designs. "I come from a weaving community and we are bringing back old designs as they are in fashion," he says. Previously, Mysore Silk was known for its deep shades, including the famous yellow-red 'Draupadi' sari that was used in the disrobing scene in BR Chopra's Mahabharatha series on Doordarshan. Now the demand is for pastels and KSIC has also changed track.
New territory:
While the Corporation couldn't capitalise on the Mahabharata fever of the 1980s, it is trying to make up for lost ground through marketing initiatives. It runs 18 outlets across India and organises exhibitions and even a vintage sari competition. There is a much-publicised partnership with NIFT to create new designs, 10 new looms and a contract with Air India to supply saris to stewards. Fortunes have turned. The turnover, which was '27 crore between 1981 and 2003, was Rs 146.42 crore last financial year, says Basavaraj. This year it is around Rs 157 crore. "Last year, the profit was Rs 27 crore, this year it could touch Rs 30 crore," he says.
A plan to reopen the Channapatna unit to manufacture soft silk saris and dress material is in the works. The highpoint of it is a Rs 4,000 sari project. Critics decried it saying it was akin to devaluing heritage but the officials are not budging. "The gold zari we use is pure but not many want it. There will be no dilution of quality as we can cut costs by avoiding zari," says an official.