machilipatnam nas report

Need Assessment Survey Report

IMITATION JEWELRY MACHILIPATNAM

Prepared for

MSME – NID DESIGN CLINIC SCHEME

By

Srinivasarao Pattur

Principal Designer - studio Greenrich

March- 2013

Acknowledgements:

This report would not have been possible without the guidance and support provided by the Caring MSME Nodal agency Team at NID:

• Mr. Shashank Mehta

• Mr. Ravishankar

• Mr. Purandar Das,

I would like to thank Ms. Sukanya Beranjee, Mr, Sharma and Mr. Parvinder Pal at MSME Foundation New Delhi for their support.

Thanks are also extended to each of the entrepreneurs at Machlipatnam : Ch Narasimha Rao, Ch Prasada Rao and D Umamaheswara Rao whose valuable inputs on innumerable issues helped me to understand the industry better to craft a more meaningful report.

Special Thanks to the true Gandhian Sri. Sadhu Gandhi ji, for the care & kind hospitality, support with smile and the interest in giving the information about the Jewelry Park in Machilipatnam.

Table of content:

1) Acknowledgements-------------------------------------------------------------- 022) Background/ history/ Present situation-------------------------------------- 043) Survey Summary------------------------------------------------------------------ 054) Implications/ issues/ opportunities/ threats--------------------------------- 065) Surveyed facts, figures and evidences-------------------------------------- 076) Solution/ options with implications/ effects/ results----------------------- 347) Recommendations and actions with input and outcomes values------ 35 8) Conclusions------------------------------------------------------------------------- 36

Background/ history/ Present situation: Machilipatnam is a special grade municipality in the Krishna district, Andhra Pradesh, India. The town has existed since the 3rd century BCE (Satavahana period) when, according to Ptolemy, it was known as Maisolos. The Periplus of the Erythraean Sea calls it Masalia in the 1st century CE. The port town is located on the southeastern, or Coromandel Coast, of India. Situated in the mouth of the River Krishna on the Bay of Bengal, The Masula port saw flourishing sea trade. It was a 17th century port for French, British and Dutch trade, when it was known as Masulipatam.

Bharat Electronics Limited (BEL), a unit of the Union Defence Ministry, of the Government of India, operates a manufacturing unit in Machilipatnam.BEL is involved in design, development and manufacture of state-of-the art electronic equipment that are used by the Indian Defence Services and para-military organization, also has cyclone detection radar station under imd dept. of science and technology govt. of India

Machilipatnam has many small scale industries. Fashion gold (also called rolled gold or gold covering) ornaments are made in the town. Yasasri gold, National gold, Uma gold, Hema Sri Gold Covering Works, Raja gold, Fancy gold, Ravi Teja gold, Mohan gold, Laxmana Gold, Ravi Gold, Fancy Gold and USHA GOLD are among the leading manufacturers of fashion gold in Machilipatnam.

125 years back Appala Chari a Vishwa Brahmin, who migrated to nearby village Chilakalapoodi, first started crafted the gold rolled jewelry for people who could not afford to buy Gold jewelry and produced commercially in late 1800s. In the beginning they used silver base to gold rolled the jewelry, called them as KATTU NAGALU, later the same used copper as base material and gold has been platted on.

Around 1940’s Tota Vekata Subbaiah gaaru- founded Uma Imitation gold works, brought the nationwide name and recognition for Uma gold. Uma gold is the first organized jewelry company to have their own company multi city Branded showrooms and franchised model trading imitation jewelry across the pre independence India.

Today the pioneering Machilipatnam imitation jewelry cluster market size is at an estimated amount of INR 500/- Cr Plus. And they have the potential to be the Market leaders in the country and estimated revenues of INR 1500/- Cr. Machilipatnam Jewelry Park should initiate to bring in fresh Ideas of jewelry manufacturing methods and automated production/plating processes.

Today portion of the industry is totally depended on key supplies/ material/ component inputs from Gujarat and Tamilnadu, in the process the Machilipatnam cluster is losing out on their profit margins, pricing strategies compared to their competitors from these places.

Survey Summary:This report summarizes the Need Assessment Survey – MSME Design Clinic Scheme Initiative conducted by Srinivasarao Pattur, Principal Designer at studio GREENRICH, Hyderabad.

Information collected between 27th to 29th December 2012 personal visit to every manufacturing unit and by interviewing the owners/ principals of these companies.

The purpose of this survey was to:

• Increase awareness about the value of implementing design process and to establish design thinking in MSMEs.

• Improve competitive edge of MSME manufacturing processes of products and services through design thinking.

• Understand the present design development and production process.

• Dig in for the scope to improve process design

Objectives of the survey are to evaluate MSME accomplishments in terms of:

• Create a sustainable design ecosystem for the MSME • Promote use of design though process by MSMEs for developing and improving products

design & development, manufacturing processes and services that are market led.• Focus on building the design capability of MSMEs to enable them to improve business

performance as well as compete in the global market.

Machilipatnam gold imitation jewelry making has been the countries first cost effective jewelry innovation caught up like wildfire in its inception spread across the south India initially and spread across the nation. Now the very same pioneering industry is at crossroads with every day growing competition from within the country and abroad.

The survey is intended to find the gaps improve upon the find new competitive edge so that the cluster regains the market share in and abroad.

A very sporadic infrastructural development is in place; however the workspaces and methods are bee traditional, were established half a century age. So the tech savvy and relatively modern clusters elsewhere across the country are gained markets share and almost supplying the machinery and other supplies to Machilipatnam cluster. Being pioneers industries from Machilipatnam could have been the trend setter and guide to the imitation jewelry industry in the country.

Photography documentation and interviewing techniques are been employed to survey the cluster to establish the facts and figures.

Implications/ issues/ opportunities/ threats:Machilipatnam gold imitation jewelry cluster has great advantage over any jewelry cluster in the country for the simple reason, the authentic imitation jewelry manufacturing born here closed to one and half century ago. Today the labor intensive cottage/ small scale industry not scaled up to its true potential.

The Jewelry Park being in the remote place, the small entrepreneurs, workers small time vendors and suppliers from the place, inherently feel that they cannot embrace the modern technologies or methods fearing the cost implications. Some of the established organizations have concerns over return on their investments.

Age old manufacturing tricks and trade practices are very much in use, some of these techniques are very primitive, cumbersome, slowing down the production rate, root cause for health issues and certainly posing big problem in finding willing human resource.

Adapting contemporary jewelry manufacturing methods would mean certain investment in infrastructure building, plant and machinery, process development techniques.

Traditional, deeply engraved cultural identity of being the pioneering imitation jewelry cluster having workforces, almost believe that they are born imitation jewelry makers. Machilipatnam Imitation Jewelry Industry has the potential of being the Capital for Imitation jewelry in the country.

Issues involved in making the ultimate move to bring in the modernization in are:• Conduct workshop to inform the new cost effective possibilities in improving the present

production processes.• Bring in the quantum leap in improving the production processes and methods• Adaptation of Automated and semi automated manufacturing machines • Branding adaptation into product design and development process• Brand Identity implementation into packaging and other display collaterals• Skills in design thinking to develop future design strategies

Availability of motivated and skilled human resources are the biggest advantage at Machilipatnam, Jewelry park association, motivating, handholding and encouraging youth by nurturing their entrepreneurial spirit would not only increase the market share in terms of revenues but also improve the economic situation by increased employment and happiness.

The cottage industry in around Machilipatnam might come under bigger threat, possibly losing out the market share to the open modern clusters from Gujarat, and Tamilnadu that embraced the technology and integrated the same in to their craft.

Organized industry must pave the paths, take up new challenges of modernization of their tools and technologies, vendor development and conducting periodical induction training programs to increase human resource.

Surveyed facts, figures and evidences:

Gold covering cluster units surveyed at Machilipatnam:Unit- 1 Name and address of the MSME unit: Goldprince fashion jewelry. (Trading) Goldprince Gold plating jewelers. (Manufacturing) Gold prince gold covering works.20/30 Narasimha Nagar, Machilipatnam Krishna district.

Contact person name: Ch Narasimha Rao Designation: managing directorContact details: 08672 250068

Product range: Gold plated jewelry, Bronze, copper, plastic Base material- gold plating, gold plating.Nature of work: manufacturing, trading, own showroom.Turnover: 10 crInfrastructure set up: Injection molding, plating, design, casting.

Employee strength: 40

Working systems and postures needed to be modified.

Storage solutions need to be evaluated to improve the quality of the product and production rate.

Packaging and branding of the these products need to be improved to match product identification and distinguishing from other manufacturers.

Warehousing solutions need to be improved to allow to manager to manage the time to store and retrieve the goods.

Better Premium product packaging would bring in better value and pricing for the premium products.

Production, Assembly and internal product handling needs to be systemized to bring in better rate of production and minimize the human input costs.

Ergonomically designed apparel to match up with the working conditions need attention. The present Anodizing systems needs an attention to detail in terms of materials used and they way they are manufactured. The present system is more of a cooked up than developed.

Goldprince Fashion Jewelry: This is one of the finest imitation Jewelry manufacturing company has the potential and leadership to rewrite the history of making and selling the imitation jewelry in the country. To be there, Goldprince must adapt few modern business development tools, methods, and process to re align their operating mechanism.

Here are the observed issues and recommendations.

The issues:1. Brand Image2. Product Mix3. Product Designing & Development, Process and Systems design4. Product Manufacturing Methods & Processes5. Product Assembly processes 6. Anodizing and plating processes 7. Warehousing and and inventory management 8. Product Packaging and Bulk packaging for transportation 9. Retail display systems

The recommendations: • An initial study shows the working system and infrastructure need to be redesigned to match with the technical advancement • Brand Identity need to be redesigned to convey the message of being a better alternate jewelry for the expensive gold jewelry • It may be the situation that there are no systems designed or developed to meet the HUMAN needs while manufacturing jewelry• Moving from “Juggad” situation to designed situation would improve the quality and rate of production• Process development needs to be improved• Few Special purpose machines and jigs and fixtures need to be developed to execute few operations at Casting, Anodizing, Plating and assembling of the jewelry• Product design inputs have to be given to improve the style and to match up with the trends of the market• Packaging has to be designed scientifically so that the product life in the transit, display and usage improves• Strategic Design thinking inputs have to given so that the business would have a very modern and matured approach make intended impact in the market place

Unit- 2Name and address of the MSME unit: suresh

Contact person name: Tadivaka Suresh.Designation: owner...Contact details: 09848782782

Product range: EarringsNature of work: Iinjection moulding.Turnover20 laks PAInfrastructure set up: Last wax molding


The women are not the technicians but they work with the machine to collet the products and organize the same. Since the machine has many moving parts and the dress code need to be looked at.

These women who are sorting the components as quality control to choose the right products, often leave their work place because, the seating and working postures are not comfortable. It is affecting the rate of production.

All the machines are randomly kept at place and getting the production. The situation may lead to few fire accidents due heat and lack of breathing space between goods around and the machines.The factory lay need to be work at.

The Issues and recommendations:• Factory floor planning & demarkation for goods to be kept and machines to be operated• Women need factory apparel while working • Material segregation inventory and stock management systems to be installed • Safety norms and awareness camps to be initiated

Unit- 3Name and address of the MSME unit: NSVK seetaramaiah moulding works381 Jewelry Park Machilipatnam

Contact person name: SeetaramaiahDesignation: ownerContact details: 09247520877

Product range: Aravanki, vaddanam, Ragidi (nagaram- jadabillalu)Nature of work: Sand casting Turnover: 3 / 4 laksInfrastructure set up: sand casting unitEmployee strength: 4 - 7 members

Only Young ladies who are singles are hired to do the sand casting filling activity. These ladies squat and fill the mould.

The young lady stands on the mold, uses her feet and body weight to press the sand, to hold the insert in right position and set the mold tight.

It is estimated that every lady would be repeating the same, close to 200 cycles in a shift, resulting lower back/ spinal injuries and Knee problems.

The full production in progress sand-casting facility has no safety factors considered.Dangling gas plastic pipes various systems are not set professionally so the quality of the production and rate of the production suffers the worst.

The full production in progress ergonomic and safe factors are to be considered.

Dangling electric wires, various tools and systems are not set professionally so the quality of the production and rate of the production suffers the worst.

Issues and recommendations: • Lack of Jigs and fixers in place• Semi automated or Mechanical power assisted SPMs would help them work better with high quality

Unit- 4 Name and address of the MSME unit: Nagabhusham Moulding works382, Jewelry Park

Contact person name: Nagabhushamam Designation: owner...Contact details: 09290441077

Product range: earringNature of work: Casting.Turnover 5 laks PAInfrastructure set up: sand casting


The young lady stands on the mold, uses her feet and body weight to press the sand, to hold the insert in right position and set the mold tight.

It is estimated that every lady would be repeating the same, close to 200 cycles in a shift, resulting lower back/ spinal injuries and Knee problems.

Unit- 5 Name and address of the MSME unit: K Nageswara Rao moulding works383, Jewelry park

Contact person name: K Nageswara RaoDesignation: owner...Contact details: 09290022278

Product range: earring: Vaddanam, Haaram, Raagadi, jada.Nature of work: Sandcasting, job workTurnover: 4 laks Infrastructure set up: Sand Casting





NAS- 6 Name and address of the MSME unit: Vijaya mohan gold covering, jewelry pack. Industry 363, Jewelry park, Potepalli,

Contact person name: Chandra ShekarDesignation: owner...Contact details:09247047099

Product range: plastic jewelry box 'container manufacturing'Nature of work: injection moulding.Turnover: 40 laks Infrastructure set up: injection moulding machine 100 tones, and support machine


Vijaya mohan gold covering industry is supporting industry for the main activity. Plastic injection moulded Packaging boxes and paper boxes are manufactured and supplied as per the clients specifications. They have the screen printing unit and paper cutting facility well organized.

The issues: The vender need to develop system to propose the new developments and drive the clients to embrace the offerings, the initiative in designing the new packages and other DTP services capabilities adding would help the client to order more news packaging.

Unit- 7 Name and address of the MSME unit: Surendra wire drawing and cutting works.367, Jewelry park

Contact person name: CH SurendraDesignation: owner...Contact details: 09676638134

Product range: wire drawing and die cutting worksNature of work: job workTurnover:2 laksInfrastructure set up: wire drawing machines, die cutting machine


Wire drawing the speciality of this unit.A very small unit well kept mostly organized their raw material and working process.

Unit- 8 Name and address of the MSME unit: CR Imitation jewelry & packing works256, Jewelry park

Contact person name: NV SubbaraoDesignation: owner...Contact details: 09491346762

Product range: BOPP, Bi Axicilory PPNature of work: job works Turnover: 8 laksInfrastructure set up: Film - side sealing machine

Employee strength: 3 member, ( an electrician, a marketing person on call)

CR Imitation jewelry & packing works is a new and modern unit. They are in initial days of setting up the process of establishing their operations.

Unit- 9 Name and address of the MSME unit: RB industries 415, Jewelry park

Contact person name: Rahamtulla BaigDesignation: owner...Contact details: 09246451999

Product range: all jewelry job work platingNature of work: job work platingTurnover: 50 lakh Infrastructure set up: electro plating

Employee strength: 20 members

The Jewelry getting prepared for the plating. Poor working methods and systems.

Bare foot walking poor conditions and lack of material handling systems making the jewelry getting damaged in the process.

Unit- 10 Name and address of the MSME unit: Raviteja plating works409, Jewelry park

Contact person name: V RamakrishnaDesignation: owner...Contact details: 09848457758

Product range: platingNature of work: job workTurnover: 5 lakhsInfrastructure set up: Electro plating plant


Raviteja Plating works has only Anodizing and plating activity. However the Management did not allow to take pictures in the name of confidentiality.

How ever the reality is there is no much difference from any other planing facility. so what ever we suggest the other company to implement may be recommended to this company too.

Unit- 11 Name and address of the MSME unit: Sai Krishna gold platingGold association hall

Contact person name: K NareshDesignation: owner...Contact details: 09949932445

Product range: Gold platingNature of work: job workTurnover: 5 to 6 laks Infrastructure set up: association infrastructure on lease


Sai Krishna gold plating unit is set up association premises, uses the association manufacturing facility and outsources much of their productions our sourced from surrounding vending units

The Brand Image and packaging is borrowed from existing business operators in the same trade. Sai Krishan is recent entrant into the imitation jewelry business. they must build the brand, compelling branding, packaging and must improve up on the product development process.

Unit- 12 Name and address of the MSME unit: Sudha gold covering industries418 & 419, Jewelry park

Contact person name: Sri. Saadhu Gandhi GaaruDesignation: owner...Contact details: 09247066416H Q 08672 229910

Product range: all jewelry work.Nature of work: jewelry manufacturing Turnover: 1. 2 crInfrastructure set up: total end to end imitation jewelry manufacturing


Sudha gold covering industries is one of the most promising and enterprising industry in Machilipatnam.

They have good Manufacturing facility and service many people in the industry.

An well thought about packaging systems are there how ever their packaging is still not protecting the jewelry to retain the freshness much longer. The packaging is more of sweet packs and hosiery material packing.

A green design well established treatment plants and designed processes are adapted in this plant.

The Sudha gold covering unit is not having the simple tools to manufacture the chains, earrings, and other ear studs back assembly screws and so on...

The Issues at Sudha: Modern tools and techniques to improve the plating process and making the Master jewelry patterns.The research has to be into developing period jewelry, contemporary jewelry based on trends of the fashion industry.

The recommendations for the Sudha: To match up their well established manufacturing unit they need to develop Special purpose machines to manufacture Chains, Ear ring raw materials wire, some jewelry screws, Develop Branding and Packaging for retail display. Import latest plating machinery.

Unit- 13 Name and address of the MSME unit: Shyam Gold covering works3/276, Inugudurupet,Machilipatnam 521 001

Contact person name: D Uma Maheswara RaoDesignation: owner...Contact details: 09849430029

Product range: Imitation jewelry Nature of work: manufacturing, tradingTurnover: 1crInfrastructure set up: total in house manufacturing unit,


Shyam goldworks,is one of the Third biggest imitation jewelry manufacturing and trading facility.They are working in an orthodox and unorganized fashion. Their trade presence and product development and innovation streak is better and at par with the leading manufacturer.

Shyam gold works, They are very big the Jewelry is scattered all around. They are also having many vendors who manufacture unfinished jewelry component for them. The ancillary industry existence is very evident and significant. Product branding, Packaging, ares should be the main focus of this unit!

Unit- 14 Name and address of the MSME unit: Apsara Gold covering jewellery.D no: 3/382,Inugudurupet Machilipatnam

Contact person name: Feroze pasha, Parvez pasha Designation: directorContact details: 09394786999

Product range: total imitation jewelry rage Nature of work: design,manufacturing, trading and export.Turnover: 1crInfrastructure set up: own manufacturing


Apsara Gold covering jewellery works company management did not allow us to enter their premises at manufacturing. They also did not allow us to photograph their products.

As a design expert I am restrained to comment on any aspect of their product or process or packaging.

Unit- 15 Name and address of the MSME unit: Yashasri gold plating worksPlot no: 434& 435 Jewelry parkMachilipatnam

Contact person name: Ch Prasada PaoDesignation: owner...Contact details: 09848184371

Product range: All Imitation Jewelry Nature of work: designing, production, tradingTurnover: 3 crInfrastructure set up: total jewelry manufacturing


Yashasri gold plating works management invited us to their corporate office at Machilipatnam.The Managing Director Ch Prasada Rao, discussed various issues those prevailing in the production process and in automation related issues.

Yashasri is the second largest manufacturing and trading company in Machilipatnam. The other bigger manufacturing companies and Yashasri has same issues. Most their work is out sourced to small time vendors who supply the semi finished good and Yashasri undertakes the final finishing touches to the jewelry.

Yashasri, industry is trying to setup a facility that embraces few modern semi automated and automated tools and techniques to modernize their manufacturing unit.

The recommendations are to adapt jewelry sorting, packaging, branding and warehousing systems to improve their image and production processes.

Solution/ options with implications/ effects/ results:

Machilipatnam Jewelry Park cluster can make the difference by employing design professionals to apply “design methods” to improve the manufacturing processes or finding alternate more safer and environmental friendly/ sustainable processes. Around the world the jewelry making techniques and technologies are under gone sea of changes and become much matured mass production industry. At Machilipatnam the industry is still in its natal stages, baring couple of units adapting few modern machines and production processes.

Electroplating process needs a deeper look, the process being a cumbersome activity requires greater human resources, fresh water and contributed huge amount of pollution to the environment. Also requires water treatment plants and air pollution management systems.

Injection molding is indeed improves the base material patterns to be incorporated however the process may become a expensive for certain jewelry item, due to number of units produced and number design changes in year.

Investment casting still a great value process however the adapting semi automated machinery would considerably increase the quality of products produced.

Jewelry making process require sea of change, it is recommended to develop new working methods to improve human factors at work and rate of production as well. Both are inter connected and needs immediate attention.

Semi automated Wire drawing; sheet drawing machines are most need of the day. The processed raw material availability would make the big difference to the major brands in the clusters.

Jewelry packing requires major revamp in its thinking. The packaging is missing the use of its legendary status as the pioneers of the trade, incorporating the brand vales as a design mark of the local industry would bring in loads of value and authenticity.

Recommendations and actions with input and outcomes values:

Machilipatnam has the huge potential to be the capital for the Imitation jewelry in country. The biggest advantage had been its own history that boosts morale of many people to take plunge into the activity. In common people see imitation jewelry making as a prime option of source of livelihood. All the cluster needs to do is:

1. Build a common ground to generate technically trained human resource pool.2. Embrace modern technological development in the manufacturing methods and process.3. Train the existing craftsmen to adapt new and more mechanized production methods to

make the production less cumbersome.4. Must corporate automate /semi automated mass manufacturing methods and process to

increase local bulk production.5. Redesign and systemize the production process.6. Adapting new base materials and design concepts to match up with the trends in the

fashion industry.7. Common Research and Design development facility will bring in fresh ideas. 8. Jewelry Park Association must initiate development of simple special purpose machines

and demonstrated the benefits to its members to get with facts and figures out lining costs and return on investments.

9. Jewelry Park Association also initiate conducting periodical design workshops and seminars focusing on fashion trend forecasting , Jewelry making, Packaging methods, Manufacturing methods, Process planning and improvement methods, quality control and management methods of imitation jewelry manufacturing.

There is huge scope to design and upgrade the existing manufacturing methods, processes and machinery to influence and enhance the rate of production, fit and finish of the end product to gain better value at the market place. There is a huge potential for the Machilipatnam jewelry cluster to increase their exporting opportunities by strategizing their product mix and positioning plans. Jewelry Park Manufacturers Association should be conducting a workshop on “Design, Technology trends in Imitation Jewelry Industry”, this workshop would bring in new perspectives and discussions to the table to define the future strategies and steps to be taken in the better interest and future of the Industry.

Conclusions: Three pronged strategy to be adapted to accomplish the intended goals for Machilipatnam Jewelry Cluster.

Strategy One: Conduct workshop on the topic ‘Design, Technology trends in Imitation Jewelry Industry’ to inform, empower and gain the trust of the entrepreneurs/ master craftsmen to understand latest developments and new possibilities.

Strategy Two: Develop a system/ body of knowledge to Research, Design and develop simple, semi-automated or automated special purpose mass manufacturing machines and process to enhance the rate of bulk production and quality.

Strategy Three: Conduct series of technology and process development short term courses, training seminars and workshops to build human resource and refresh/ polish the existing workforce.

By investing time and efforts in the direction discussed above would certainly bring in the business edge of producing the top quality bulk jewelry components at relatively economical way to gain trade advantage in the price sensitive markets and also move up into high value markets with best quality product offering.

The Historical UMA GOLD COVERING WORKS Building in Machilipatnam.

machilipatnam nas report

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