Based in Bangalore, Industree Crafts Pvt. Ltd [Industree] is an artisanal enterprise founded in 1994 that has grown to become one of India’s best known social enterprises. Industree organizes and trains groups of artisans into producer Self Help Groups (SHGs). Industree sets up its own SHGs – funded by GFB –who produce 45% of Industree’s products made of natural fibers.
Industree‘s multi-retail brand, Mother Earth, offers the new producer-entrepreneur with a direct market platform to the Indian retail market, ensuring steady business of high volumes and smooth cash flows. These products are sold at their boutiques in Bangalore, Mysore, Kolkata, and Mumbai, and through various export channels like Ikea and TJ Maxx.
To successfully fulfill both its social and business goals, Industree has developed a business model capitalizing on two channels:
- Industree Crafts Pvt. Ltd. (ICPL):The for-profit retail arm creates a reliable supply chain and order flow;
- Industree Crafts Foundation (ICF): The non-profit, organizes and trains artisans clusters into producer owned enterprises that give artisans a stake in their business and access to government social services.
GBF committed an investment which allows Industree to cover its working capital, as well as the non-profit’s work with artisan communities. Through the investment, Industree has been able to reinforce its current offerings of education, health camps screening, as well as higher pay and increments. GBF’s investment has increased Industree’s production output and optimized its supply chain.
GBF BAS & INDUSTREE:
GBF has focused its BAS program on the development of supplier based Self Help Groups (SHGs), and assisting in training the groups in the basic of financial management and governance. Additional BAS include:Financial Management: A finance consultant for cash planning and budgeting; monthly tracking & reporting tools (i.e. dashboards); fundraising/ investment readiness Strategy: Strategic marketing planning & support; Strategically-developed business plan Operations: SHG Trainer/ Program Manager; Production planning & Design Consultant Environmental & Social: E&S management systems; A social impact survey that tracks supply chain to understand various impact metrics; SA 8000 certification
Since GBF’s involvement through investment and BAS, Industree has increased sales and margins by passing along benefits to its customers in the form of lower prices, improved inventory management, increased store-in-store shops and export sales.
- Industree’s largest impact is how they incubate, train and supervise 369 artisans to transition them from manufacturing traditional products with limited demand, to manufacturing modern/ contemporary designs and increase their profits
- The number of beneficiaries under the Self-help groups (SHGs) has increased from 120 in the beginning of 2012 to over 250 in by the end of 2013
- Industree Crafts Foundation organizes and trains artisans clusters (SHGs) that grow into producer owned enterprises giving artisans a stake in their business and access to government social services
- In 2014, Industree generated over $221,000 in income for artisans incubated under its SHGs- a 123% increase from the $100,000 generated in 2012
- So far, 2 producer-owned enterprises have been formed from the SHGs and are growing in scale as businesses
- Mother Earth sources from over 100 producer groups, totaling roughly 3,000 producers
- Nearly 75% of beneficiaries belong to low-income communities & over 70% of the beneficiaries are women
- Over 80% of artisans now have access to banks and other financial instruments
Learn more about Our Approach to Measurement.
Industree supplies handmade, artisinal home goods to Ikea’s international retail locations, as discussed in this video.
Industree receiving its 3rd Social Audit Certification