CHAPTER VI

THE ECONOMIC STRUCTURE OF ENTREPRENEURSHIP

The economic structure of Moradabad brassware

industry is distinguished by its exteme degree of division

of labour, otherwise it shares many characteristics of

artisan - based industries, like carpet-making of Bhadoi,

Bangle-making of Firozabad, wood industry of Saharanpur,

pottery industry of Khurja, lock industry of Aligarh etc.,

where gradually the cottage content is declining fast and

fairly large establishments are coming into being. Such

organisation is taking place in Moradabad too, with the

growing use of sheet metal, yet its fame and market is still

dependent mainly on the specialised process of production,

where one household unit is engangd only in one process.

The structure of entrepreneurship represents

fairly common characters of the cottage industries

elsewhere. The whole industry is organised in various

functional groups. VOne group of persons are engaged in raw

rna t e ria 1 , supplying brass, copper, zinc, tin, coal, wood,

kerosene oil, packing material and other items necessary for

production and marketing. This aspects of the trade is /-

mainly in the hands of non-Muslims 1. '--the other group is

represented by dealers of manufactured brass .items .. - I - both

1. The community distribution of entrepreneurship is disscussed in Chapter VII.

135

artware and items of domestic use, including the small

establishments dotting the main bartan bazaar of the town.

Here too the shop keepers are mainly non-Muslims. third

group is the exporters, who organise the prodcution, control

the market and supply to a large extent the financial needs

of the industry. This group in true sense may be described

as entrepreneur, as it explores the new market, new sources

of raw material, takes substantial risks and introduce new

changes in the product designs. However, production

innovation is left either to the Karkhanedar or artisan.

The number of units of this group is divided half-

half in the two main communities: the Hindus and the

Muslims. However, barring a few large units of Muslim

exporters - they have smaller size of operations in export

market as compared to non-Muslims. Traditionally the Muslims

were engaged in exporting the brass novelties to Middle East

countries, especially to Saudi Arabia, during their visits

to Mekkah for pilgrimage. The non-Muslims controlled the

local market. However, with the exhibitions organsied by

the colonial governments, especially during 1920's opened

new channels of exports, where the moneyed business

communities like the Banias, especially Agg-arwals moved in.

After the immigration of Punjabis to the town after

Partition, a large number of export houses came to be

controlled by these immigrants, which has generated a

136

c 0 mm un i t Y ten s ion bet wee n mig ran t Pun jab i s I and 1 0 cal ban i ya s

on one hand, and Muslims and non-Muslims on the other.

Since the local trade in brass items had been declining, and

export market had been increasing since independence 2, the

local traders have also moved in export business in large

number. Almost all the non-Muslim castes are represented in

th . d 3 e In ustry

The next entrepreneurial group in importance is

the Karkh~Brtar~. They maintain relatively large-sized

composite units, where most of the processes are carried out

under one roof with the help of hired labour. In 1976

about 9 units and in 1980 about 19 units are reported to be

composite 4 units, which were solely controlled by non-

Muslims. Here the level of technology is higher, as

mechanisation in the processes like silli or 'chakka'

making, scrapping, electroplating and polishing, to a

2. Kumar Naresh, The Brassware Industry of Uttar Pradesh with specific reference to Moradabad, Ph.D Thesis, Deptt. of Commerce, Agra UniversitY, 1980, pp. 44-46

3. Muckher j ee, Meera, Anthropological Survey of India, 1978, p. 147.

Metal crafts of India, Govt of India,--Calcutta,

4. Kumar Naresh, op. ci t., p. 77; Kirloskar Consul tants, Feasibility Report for Setting ~ a Functional Estate for Brassware Artisans, vol. 1, P.I.I.C of U.P. Ltd, Lucknow, August 1980, Bhatnagar, Shiv Prem, The Brassware Industq; Q! Moradabad Its Origin, Development and Importance ~ ~ Medium Q.!. EarnTi1g Foreign Exchange, Ph.D. Thesis, Kanpur Universi ty, 1975, p.23

137

larger extent, istaking place. The Muslim karkhanedars

usually specialised only in one process of production, even

though mechanised, like scrapping or electroplating etc,

with relatively smaller sizes.

The last and the core group of the industry is

rep res e n ted by the ~s~ en t rep r en e u r s , who usually

specialise in only one process of prodution, is usually hand

operated or

1 abour. !Many /

is done manually and mainly employ

such units are single worker units

family

- the

artisan himslelf, or often with an assistance of child

apprentice of his own family or of some acquaintance, who is

paid a weekly pocket allowance. The age of these

apprentices varies between 10-15 years.~

The flow chart of the process of production 5 is

given on page 139 and the description of the different

processes is given below:

5. Kumar, Naresh op. cit., pp. 66 -,76; Kirloskar Consultants, op. cit, pp 2.2.- 2.14 D.P. Industrial Consultants Census Survey Q.f Metal Craft Industry in ~, U.P. State Brassware Corporation, Moradabad, 1981, Chapter 3, pp 10-19, Directorate of Industires,Industry Outlook Report: District Moradabad (Hindi), Kanpur, 1956, pp. 135 -160. The final list of processes was arrived at after discussions with entrepreneurs and offcials of D I C and UPBWCO. The chart on p.139 is at variance with the description, as a few processes like pattern making is eliminated from the chart. The first detailed description of the manufacturing processes is provided by P.ant, R.D. \ Report Q.!! an Enquiry into Labour Conditions in the Brasswar-e­Industry of Moradabad, Labour Office; United Provinces, Cawnpore, 1945, pp 3-10

138

ORGANISATION OF BRASSWARE PRODUCTION

IN MORADABAD TOWN

RAW MATERIAL

139

1. Pattern Making

As soon an order for some item is received from

the buyer by the exporter he takes it to the wooden pattern

maker (if some previous pattern does not exist). The wooden

pattern maker receives the speicifications and measurements

of the item and makes the indetical sample. On the

successful completion of the task the wooden pattern maker

receives his wages in accrodance with the amount contracted.

depending on the size and shape of the item. This is a

traditional

apprentices.

profession and children are taken as

In the next step the exporter/manufacturer

approaches the Brass pattern maker who produces the metal

pattern by a casting process. Brass and zinc metals are

used for casting the Brass metal pattern. They also take

labour charges for the pattern made accroding to the size

and shape of the pattern.

2. Silli Gulli Making:

Silli in vernacular language is assigned to the

raw meterial ingots and gulli to the sheet rolling.

respectively. For silli making the virgin metals like

copper. zinc. nickel and the scrap of a particular metal is

140

melted in crucibles of average size of 330 Kg .. which are

usually coal or sal wood fired.

For gulli making similar raw material is melted in

earthen moulding pot using coal or wood as fuel. This is

usually in round shape; the size of moulds vary depending on

the weight of the gulli required. The material composition

is to be obsered critically. for this has to undergo the

rolling operation. In the case of EPNS (Electroplating

Nickel Silver) percentage of lead is to be kept at a

definite minimum level. particularly for articles which are

used for storing liquids or solids for human consumption. as

lead is a poisonous metal.

Silli and gulli makers also take labour charges

according to the weight of the items or sometimes purchase

raw materials. prepare silli or gulli and sell them to the

manufacturers and take the profit.

It may be pointed out that silli and gulli making

do not fall in the sequence of the production processes.

3. Moulding and Casting

There are two methods of

available in the city of Moradabad.

141

moulding and

Initially the

casting

casting

work was done by the "thatera" caste, but the round sheet

work was introduced during World War II. Para casting is

the oldest method in Moradabad, especially the items like

(Iota' and (gilas' were manufactured, which is now

exclusively taken over by the (Karkhanas'.

Su t , of late this process has paled i n t 0

insignificance, because this method is found relatively more

costly and inefficient as compared to the other method of

casting that is (darja' casting.

The "darja' casting practice is followed allover

India, because it is a simple process, with small capital

requirement. This process made progress during World War II

due to the discovery of EPNS wares. One Mr. Habibullah Khan

had started manufacturing vessels by this process in the

city, who lived in Chowki Hassan Khan Mohullah and first

casted successfully the Aftaba which is the most popular

item among the brass artware in the foreign market.

A number of items of brass artware like flower

vase, rose bowl, Aftaba, table lamp, ash trays, Arabi Hukka

etc; the family goods like, tea set, coffee set, Ghulab

pash, Lemon set etc; and goods of domestic use like Gilas,

Lota, Katori, Golchi, Knife and fork, milk pot etc. are made

by this process.

142

It may be mentioned here that para casting is

costlier than darja casting. But items produced through para

casting are of better quality and more durable than those

produced by the darja method.

method of moulding and casting.

The latter is more efficient

For the items produced by

darja casting jhalai (soldering) is essential.

4) Welding/Brazing

Welding or brazing is required for both the cast

as well as sheet articles. There are three ways of welding;

namely, gas welding, stove welding and ranga welding. The

articles which require welding are beer mugs, Aftaba,

teapots etc. This is necessitated because the parts of

articles are made by casting separately.

workers man these units.

Usually single

5) Soldering and Revetting

This process is similar to that of welding and is

required to join the different parts of an item. I n the

beginning the items were jointed by ranga, but the joints

were usually unstable. The (pakke-tanke-ka-kam' was started

more than a

require much

employed.

hundred years ago. This process

investment. Simple tools 'like

143

does

f i I e s

not

are

6) Filing

After soldering and rivetting the item is taken to

the (ragrai wala' for filing work for smoothening the

inequalities of the item. A variety of files are used in

accordance with the item and severity of the inequalities.

7) Scrapping (Chhilai)

This process is specially necessitated for the

cast items to make the surface smooth without which the

kalai or electroplating will produce not so clean items.

The scrapping is done. by hand. by charkha. by kanta. and

by· machines. The first two methods were used in the

beginning. although still in use. But now the latter two

methods are more in use because of the saving in human

energy and speedy completion of the task. It is mainly done

by females and children. Initially this work was done by

the bhishtis (a poor Muslim community) who had migrated in

large numbers to Pakistan during Partition and the communal

roits of 1950. Still some of them are found in Moradabad

along with their traditional occupation. Also. due to

uncompetitive wages this method is in its skeltal form.

Simlilarly scrapping by charkha is a deteriorating

process mainly owing to the introduction of the scrapping

machines. However the scrapping by the Kanta method still

144

continues in large measure for it does not require Illuch

investment in tools.

curvatures of items.

It is simple and can handle different

It was invented about 85 years ago.

Scrapping by machine is the reformed. form of

charkha scrapping. Normally electricity is used as motive

power. It requires higher investment. This is why the

machines are hired by the artisans and usu~ly located in

some commonly rented buildings where many of them work

together and according to the work receive their wages and

pay the rent of the building and machine and pay the

electricity bills. The machine operated scrapping is

attracting entrepreneurs with more capital and the

influence of non-Muslims in the process is increaSing.

8) Tinning and Electroplating

The history of tinning on utensils is hundreds of

years old and Moradabad was especially popular for this.

Previously the tinning on copper vessels was done with pure

ranga' but prohibitive prices of the kalai led to the

doterioration in the quality and now lead mixed with Kalai

j s tlsecl to roduce the prices as the price of the lead is

l/B th of the original kalai. The pure kalai is very stable

an4 hygienic and ~pa'ially sood for ~torln8 gour )lquid~.

140

At this stage the item is either tinned or

engraved and lacquered or both. A polished article,

however, is not lacquered, but simply engraved, if need be.

There are two methods for tinning; namely, hand tinning and

electroplating. Hand tinning is very old. It is after

this that Moradabad was called, white metal town. Although

this process is still in existence in Moradabad town but

gradually giving way to electroplating, which is cheap and

long lasting.

Electroplating was introduced after the World War

I. Nickel plating has replaced the kalai which gives a

shining and brighter look, and also saves time and money.

This is usally applied on the Electroplated Nickel Silver

(EPNS) wares by electroplating the german silver.

9) Kathai (Finishing or Polishing)

To shine the coloured items or items having kalai

on them is called kathia or polishing. It is done by four

methods; The coloured items are polished either by hand or

icharkh' or by machine. However, those with 'kalai'

especially the thalis, are done by feet.

10) Engraving or Khudai

This process is a speciality of the brassware

industry of Moradabad for the demand in the foreign

146

market for engraved items is fairly large and competition

from other exporting countries is much less. This is a very

old tradition and demand for such items is· on the increase.

There are a number of types of engraving. the most important

among them being; Japani kam. mamoli kam. chicken-ka-kam.

baa reek kam. dugni chicken-ka-kam. burme-ka-kam. nok-ka-kam.

lining-ka-kam. sumbe-ka-kam. Arbi-ka-kam. marori-ka-kam.

chheent-ka-kam and pasmeene-ka-kam.

Only the Japani-kam.

can not be given the colour;

lac paint and paint colours.

sumbe-ka-kam and nok-ka-kam

the rest work may receive the

For items to be given nok-ka-

kam and for the items to be done with sumbe-ka-kam and

frosting are to be done only when they have been given kalai

or nickel plating. In rest methods this can be done before

plating and after which the colouring follows.

Engraving can be done by persons sitting in their

houses. with a very little investment. The government has

started the non-ferrous metal scheme to give training in the

engraving work. and also with a view to provide more designs

and employment to the artisans. This is now working under

the U.P. Brassware Corporation in Moradabad.

The artisans working on the items for engraving

either follow their own designs and patterns or follow the

147

designs given by the buyers through the exporters or

manufacturer s. Some of the artisans are engaged only in

engraving names like,

the exporting houses.

!Made in India' and the trade mark of

11) Colouring or Rang Bharai

Not all items are treated with colours and paints

but few of the engraved items require colouring to enhance

the beauty of the items. This process is in vogue since the

days of the Mughals, but only black colour was practiced for

long untill the last 100 years when lac colours were used.

Now there is a tradition of filling many shades and types of

colours. Initially the enamel was used in China which

remained unsuccessful in India in earlier days of its

development, since the colour needed for metal untensils

require extreme care. Now in India the lac colours are used

extensively.

Some of these processes were present from the

beginning of the brasware industry in Moradabad during the

Mughal period. The patronage of the industry by the latter

Mughals provided a sound base for the growth and

development. the process like casting, engraving and

tinning were fairly developed during that period. The

148

exhibitions of 1920 l s, the opening up of foreign markets and

introduction of electricity introduced the elements of

modernisation before independence. The subsequent efforts

made by the Indian and state government of Uttar Pradesh

after 1947 introduced elements of modernisation,

diversification and development. More mechanised processes

were introduced in scrapping, polishing, and electroplating.

The growth of industry after 1947 may be measured in terms

of number of units, their composition ,with respect to

various production processes, size of employment, size of

investment, size and pattern of production, diversification

in the range of products, and size of sales - domestic and

foreign. Subsequently, the pattern of Muslim

entrepreneurship can be analysed in that context.

The data available on the number of units and the

composition Of production process do not lend to a

systematic presentation of the growth pattern. Most of the

studies provided estimates, despite some of them claiming to

have carried census surveys. The reason had been the

differing definitions used, depending on the purpose of the

studies, the changing pattern of the processes, the nature

of the industry (being mainly cottage) where it is difficult

to identify a unit and the reluctance of the entrepreneurs

to provide exact information. However, an attempt is made

149

to analyse the data on the size and composition of the un its

in the industry.

Number of Units

R.D Pan t ' s study 6 does not provide information any

either on the number of units or size of employment. except

that he reported the number of dealers in Moradabad city to

be 250.

The Industry 7 Out Report puts the number of units

at 6141 engaged in brassware industry. of which 5952 were

cottage and 189 small scale industries. The study done by

Baljit Singh 8. around 1954-55 recorded 3800 units with

employment less than 2 and more than 20 9 .

A. N. Aggarwal puts 10 the size of units in 1960

at 1000 units and 10 rolling mills. The survey carried out

in 1959 by All India Handicraft Board 11 recorded the number

6. Pant. R.D .. op. cit. p.2

7. Directorate of Industries. op.cit.

8. Singh. Balj it. The Economics of Small-Scale Industry ~ A Case Study ~ Smarr-Scale Industrial Establishments of Moradabad. Asian Publications. Bombay. 1961. p.7

9. ibid .. p.4

10. Aggarwal. A.N .. IUttar Pradesh Brassware Industry' in T.N. Kapoor (ed.). Industrial Development in the States of India. Delhi. 1967. pp.454-496 on p.478. This appears to be an underestimate if compared with earlier quoted survey reports. 11. All India Handicraft Board. Report on the Survey of the Brassware Industry at Moradabad. Ministry of Commerce and Industry. Governmentof India. New Delhi, 1960.

150

of brassware units to be 4836 of which 2537 were exclusively

engaged in brass artware.

The Registrar, Census of India brought out an

exclusive monograph on brassware industry of Moradabad and

reported that the number of units in Moradabad 12 district

was 5128 of which 4998 belonged to urban areas (Moradabad

town) .

By comparing these figures, it may be stated that

the number of units reported in the Industry Outlook Report

in 1955 were rather exaggerated or else the industrial units

mights have declined between 1955-60, which is less likely

because the figures reported by the All India Handicraft

Board and Census of 1961 were very close to each ohter.

Therefore, in 1960 - 61 the units in brassware in Moradabad

may be put at 5000. But the Developmenbt Commissioner 13 in

1976 reported 1493 registered units and total estimated

units to be around 4000, which obvisouly an under estimate.

Th U P B C . 14 d h t . t d e .. rassware orporat10n reporte tees 1ma e

J2 Census of India, 1961, Vol XI, Uttar Pradesh, Part VIlA, Handicrafts Survey Monograph No.i by R. C. Sharma, Delhi, 1961. p.3

1 3 . 0 eve lop men t C 0 mm iss ion e r (S S I) : Rep 0 r t son Bra ssw are Industry ~ Moradabad" SIDO, GOI, New Delhi. Nov. 24, 1976 (Mimeographed), p.8

14. U. P. Brassware Corporation, Report on the Working and Achievement Q! the Q f State Brassware Corporation Ltd, Moradabad, 1977 (Internal note), p.l.

151

number of units to be 5000 in 1977. 15 S P Bhatnagar's Study

done around 1970 reported 5084 units in the cit~· engaged in

brass industry, which seems to be reasonably consistent with

earlier growth. He tried to show the growth according to

the year of establishment, of the units he surveyed, which i

is presented in table 6.1.

The study carried out by Kirloskar Consultants 16

for U.P.Brassware Corporation estimated 7225 units exclusive

Table 6.1

No. of units according to the year of establishment

Periods No. of units Percentage

Pre-1920 87 1. 71

1921-30 78 1. 53

1931-40 123 2.42

1941-50 594 11.68

1951-60 1922 37.81

1961-70 2280 44.85

TOTAL 5084 100.00

15. Bhatnagar, S.P., op.cit, p.38. If the units was engaged in more than one, it was counted more than ones. Therefore, the actual units defined as, 'owned by a single owner, irrespective of the number of precesses the unit was engaged', would not have been more than 4500 in 1970.

16. Kirloskar Consultants, op cit, p. 205. It appears that it was an over estimate by 7 percent or so.

152

of 350 exporters in 1980. The UPIC0 17 survey of 1981

recorded 7500 units in the urban area of Moradabad district

all of which may be expected in the Moradabad town, as no

evidence of such units existed in towns other than

Moradabad. The actual number of units must have been 6062.

In the present study, carried out in 1983-84, the

estimated number was about 7125 including exporters, of

which 6421 belonged to the Muslims However, for the sake

of analysis the Muslim exporting units (241) and non-Muslim

exporting units (estimated to be 200) may be excluded to

arrive at comparable figures with other studies, where

definitions are similar. In this case the estimated number

of units were 6684.

Therefore, the estimated number of units are

presented in table 6.2

17. UPICO, op., cit., 1981, vol. II, p. 1. The unit was defined according to the number of processes. If a unit was engaged in more than one process, it was counted more than once and such units were 663, if excluded from a total list of 7650 would give 6987 units, and if substracted for rural (150) would give a net figure of 6837 units, which to me appeared overestimate. By counting from the orignal listing of the UPICO survey the figure arrived at was 7000. There were repitions of units in the list of t~e order of 275 units. Therefore, the net figure would ha~e been 7000-663-275 = 6062. .

153

Table 6.2

Estimated Number of units in Brassware Industry of Moradabad

Period Cumulative No. of uni ts

------------------------------------------------------------.0,

.0, '0'

'0'

1920 27 J. '0' 1930 165 .0. '0' 1940 288 :~

1950 882 :::~

1960 2804 .0. '0'

1970 5084 ~~ :::t

1980 6062 ~:~ ::' ::c

1983 6684

Based on Bhatnagar1s study, op. cit.,

** Estimates based on Kirloskar's study and UPIeO

Survey , op ci t,

*** estimates based on the present study

It appears from the data of establishments that

the number of units started rising after 1950, and the peak

growth observed was during 1961-70, thereafter the growth

rates declined during 1971-80 and 1981-830 During 1971-80,

it appears that opening of new units was slowed down.

However, the slow growth in units after 1980 can be ascribed

to the afteramth of the most intense communal roits of 1980.

During the field visits, a large number of units were

154

reported to have been closed down, which had started rising

after 1982 at a slow pace.

The Composition of Production Processes

The situation regarding the composition according

to the production processes is no less confusing. However,

the results may be analysed. Table 6.3 presents the number

of units according to the various processes.

Although the data on the number of units in table

6.2 are not reliable nor are strictly comparable, but it

shows the relative importance of the processes of

production. The process of engraving, casting/moulding,

scrapping and polishing are basic to the industry and over

the years had been growing. The units in sheet work and

electroplating are also growing in importance. With the

change in technology, and increase in the level of

investment, sheet work, scrapping, polishing, and

electroplating

also some of

were replacing the existing technology and

the processes like; tinning was getting

replaced by electro plating, casting is gradually replaced

by shaping and sheet work, etc.

155

Table 6.3

Distribution of units acording to processes

~~~~-~~~~-~;----------~~~I8------~~~~I9---~~~~~26-----;~~~~~~~~2I-~~~~;2

The Processes 1956 1960 1970 1980

1. Engraving 1280 1022 2044 2220

2. Colouring/Lacqur-ing Enamelling 400 95 190 200

J. Polishing 570 104 208 1200

c1. Tinning/ Electroplating 900 55 110 200

:). Shee t work 125 52 104 100

J. Gulli making 47 109 218 250

7. Casting/ \10 u I ding 940 369 738 1820

3. Soldering/ Rivetting

1. Scrapping

). Pa t tern making

l. Others

Total

500

1200

189

6151

171 342

533 1066

27 54

2537 5074

I. Directorate of Industries. Industry Outlook Report. 156. op.cit. The S.S.I represent some of the units falling 1 other categories like scrapping. casting etc. and is Icluded in 'others' category

All India Handicraft Board. 1964. op. cit. p.3. only ·tware units are included.

Bhatnagar. S.P .. 1976. op. cit; p. 38. The numbers are sed on the census survey.

Kirloskar consultant. 1980. op. cit. p. 2.5. The units present only estimates.

UPICD. op. cit .. Vol.II. p.2; The units having more an one processes are categorised in 'others'category. The tal included the rural units as well.

156

500

700

25

10

7225

1981

1560

85

1190

256

425

2150

431

890

663

7650

The data collected 23 wi th respect to these

processes on sampling basis are represented in table 6.4,

which relate to 1983, and represent Muslim units only.

Table 6.4 reveals that for Muslims, the most

important units are moulding/casting, scrapping/filing,

polishing and engraving, etc. The peripherel units engaged

in soldering/rivetting/turning/grinding, which are often

neglected by the earlier surveys, since by and large they

are single worker units, but represent a substantial share

in the total number of units. The increase in polishing

units owes itself to large number of rural migrants entering

the processes who usually work within rented premises and

with rented machinery jointly hired with other artisans of

similar background.

Although religious composition of units in various

processes in not known, however the discussions held with

many entrepreneurs revealed that engraving, by and large,

was with Muslims (most prominent being Ansari caste), and

was declining due to the introduction of sheet and plain

items handled by machines. Scrapping is also declining due

to introduction of machines. It was also told that some of

these units were becoming composite where many processes

were carried simultaneously. The process of casting is also

23. This table is reproduced from Table 3.1 of Chapter 3.

157

TABLE 6.4

The process-wise distribution of Muslim units

S.No. Process of Production

1 Moulding/casting

2. Scrapping/Filing

3. Polishing

4. Engraving

5. Soldering/R,ivet t ing/ Turning/Grinding

6. Sheet work

7. electroplating

8. Silli-Gulli Making

9. Composite units

10. Others

11. Exporting

Total

No. of units Precetage in total

1360 21. 2

1163 18.1

800 12.5

803 12.5

969 15.0

159 2.5

82 1.3

121 1.9

521 8.1

202 3. 1

241 3.8

6421 100.0

giving way to moulding and shaping mainly by machines. The

tinning has almost given way to electrop~ating. Although

all these technological changes are bringing about better

organisation, and as such making entry easy for those with

ready finance or marketing experience, but this is replacing

Muslim units ( sma 11 ) , by non-Muslim (large) units.

Therefore, technology and better organisation and higher

productivity are affecting the religious composition of the

158

communities, which might be affecting the inter-community

1 . 24 re atlons .

Employment

The pattern of employment from various studies is

also not comparable, and therefore no consistent series of

the growth of employment in this industry could be prepared.

However, a few remarks are made based on the data brought

about by various studies.

The Industy Outlook 25 Report . . di d lnl cate 29672

workers in 1956 who are directly engaged in the industry.

The AIHB 26 in 1960 puts this figure at 8897 for artware

units of the brass industry. 27 Bhatnagar in 1970 reports

the total employment at 26691, whereas UPICO reports in 1980

the total employment in brass industry of the district at

29100 workers. In the Muslim units in 1983, the present

study puts the estimates of employment (based on 2.5 per

cent sample) to be 24680 workers, including 760 females and

2840 children. Given that the units among Muslims are

24. This point is elaborated, with the help of secondary informations, in chapter VII.

25. Directorate of Industries, op. cit.

26. AIHB., op. cit.

27. UPICO, op. cit,

159

samller, the total employment in the industry, including

28 non-Muslim units, may well be over 30,000 workers .

Investment

The growth of . 29 lnvestment was also found

difficult to be ascertained. The Industry Outlook Report

puts the investment at Rs.23.01 Lakhs in 1956. The study

did not provide information on fixed and working capital

separately. The AIHB study of 1960 puts the total invest of

artware units at Rs36.58 lakhs of which Rs30.69 was fixed

capital and Rs. 5.88 lakhs as working capital. Bhatnagar

in 1970 provides respective figures for total investment,

fixed capital and working capital as Rs 108.75 lakhs,

Rs.91.08 lakhs and Rs17.67 lakhs. Whereas UPIeO puts fixed

capital at Rs 108.75 lakhs in 1980. It does not provide

information on working capital.

. No 1

attempt was made in this study to estmate the

size of investment in the brassware industry of Moradabad,

since the sample was small, the units considered in the

study confined only to the Muslim community and over and

above the difintional requirements of fixed capital and

28. The analysis of Muslim units seperately according to the type of subsequent paragraphs.

29 The relevant brevity.

reference and are

given with respect not reproduced here

160

would be presented entrepreneurship in

to table for the

6.3 sake

are of

working capital were difficult to be ontained 30 as most of

the units did not maintain written records, and lack of

literacy made things even difficult. Therefore, the data, if

presented according to the type of entrepreneurship on an

average basis would provide better indicators of the

relative position of the types of entrepreneurship, which is

presented in subsequent paragraphs.

Sources of Funds

The Industry Outlook Report does not give the

sources of funds. The AIHB study of 1960 shows that the

dependence of loans on outside sources was to the extent of

only 4.67 per cent of which major contribution carne from

money lenders, followed by government, dealers and

Karkhanedars, and freinds and relatives. Bhatnagar's

study of 1970 put the requirement of loans at 4.71 per cent

on sources other than one's own. The pattern of loaning was

similar as in case of the AIHB study as if no change had

taken place during 1961-70. The UPIeO study of 1980

reported that all the money was mobilised by the

entrepreneurs from the personal sources and no share was

reported either from the money lenders, or government etc.,

which obviously was not the correct situation.

30. However, the estimated investment in 1983. based on 2.5% sample was arrived at Rs.9.5 crores in the Muslim units. For Similar views see Kumar. Naresh. op.cit.

161

The present study revealed that the entrepreneurs

used their own money in 49 per cent cases, in 41 per cent

cases from parents, 4 per cent from friends and relatives, 4

per cent from government and 1 per cent each from money-

lenders, and dealers /exporters. I

It appears, from all the

stUdies that most of the entrepreneurs utilised either

personal or family resources to start and run their

enterprises. that the role of government funds is ~'et t 0

find its way into the industry. and that the money-landers

as a source is declining.

Production

The Industry Outlook Report puts the production

value at Rs 400 lakhs in 1956. The AIHB study does not

provide figures for production except reporting sales of Rs.

110 Lakhs in 1957. Rs. 121 Lakhs in 1958, and Rs. 167 Lakhs

in 1959 for the art brass ware. of which 80 per cent went

for export. Similarly. Bhatnagar study does not provide any

figures for the production value in Rupees; instead it

provided the volume of sales in quintals. Therefore. it was

difficult to arrive at the Rupee value owing to the absence

of price index for brassware. It may. however, be noted

that the export sales outside the town increased by 55 per

cent from 1961 to 1970 . recording an annual growth rate of

5.5 per cent per annum.

162

Naresh Kumar 31 presented the data on production

from Moradabad which he adapted from the Art Metal Work

TABLE 6.5

Size of Production of Moradabad Brassware Industry for

Various Years

Year Production (in Rs crores)

1950-51 1. 60

1955-56 1. 80

1960-61 1. 90

1965-66 3.12

1970-71 9.29

1971-72 12.71

1972-73 13.50

1973-74 15.75

1974-75 16.25

1975-76 20.00

1978-79 32 82.00

1979-80 33 102.69

1982-83 34 102.57fj

31. Kumar. Naresh. op. cit.. p. 24 32. Estimates provided by Kirloskar Consultants. op.cit .. p.2.17 33. UPICO. Vol II. op.cit. p. 3. 34. For Muslim units only. The exporter units were excluded to avoid double counting. Also are excluded non-Muslim units by the design of the study. Given that additional units in production with non-Muslims must have been about 7 per cent. but with higher production level. Therefore, additional 10 per cent may be added to these estimates. It would give a total production of Rs.112.83 crores in 1983. ---J

163

Panel of 1976, which along with the data from other studies

is given in table 6.5.

From table 6.5 it may be concluded that the

industrial production has expanded almost 65 times in a

period of 30 years. The rapid growth in production is

witnessed from 1975 onwards, although number of units

wintnessed rapid growth in the previous decades This

proves that the technology and organisation improved

considerably only after 1975.

Production pattern

The production pattern has also been changing from

production for domestic market to the export market.

Between 400-500 items are produced in the town which may be

categorised 35 into artware, utensils, pujaware and

artifical wares. The artware industry items include

Aftaba, flower vases, Hukkah, table lamps, trays, stationary

items, photoframes etc. The utensils group includes, gilas,

thali, Iota, tea set, cooking pots, etc. The pujaware

includes arti, sindoor boxes, candle stands, deepaks etc.

The artificial ornaments group includes items like belts and /-

bangles etc.

35. See Kumar, Naresh, op. cit, Chapter 11; uprco survey' , op.cit p.3

164

The share of utansils has changed since

Independeces from 75 percent to 25 percent in 1976. a nu the

share of artware from 25 percent to 75 percent during the

same period. About 90 percent of the artware novelties of

the total export of Indian brassware came from Moradabad 36

The distribution of items shows that in 1976 the domestic

ware accounted for 18 percent. pujaware 7 per cent.

37 and novelty items 75 percent

fancy

be Rs.

The sales realisation during 1980 are reported to

159.70 crores by UPIeD survey 38 of which utensils 1.4,

accomted for 44.89 per cent; !.

5.15 per cent by pujaware and

50.04 per cent by art wares and artificial ornaments. which

goes against the trend reported by previous studies.

However. the discussions and impression from the field

suggessted that the trend is becoming more and more vigorous

towards export market. and production of utensils is

declining as far as Moradabad is concerned. This trend is

effected due to better returns on export. favourable

government policies. replacement of brass utensils by glass.

porcelain. plastic and aluminium utensils. Therefore. i t

appears that most of the data produced by UPIeD survey is

incorrect: be i t the number of units. employment.

investment. production or sales.

36. Kumar. Naresh. op. cit. pp. 11-12. AIHB. op cit. 37. ibid. 38. UPIeD. op. cit .. p. 3.

165

Export

No separate data is available for the export of

brassware from Moradabad . However, all India data for

brassware are available from AIHB for every year, and it is ~

TABLE 6.6

Indian Export of Brassware to Other Countries

Year Export (Rs crores) ------------------------------------------------------------.', ','

1937-38 1938-39." 1939-40'" 1950-51+ 1955-56+ 1960-61+ 1961-62+ 1962-63 1963-64 1964-65 1965-66 1966-67 1967-68 1968-69 1969-70 1970-71 1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82

0.011 0.015 0.008 1.600 1.800 1.900 1.800 1.630 1.800 2.040 2.130 2.430 2.800 4.990 5.460 6.500 7.120 8.650

12.490 15.700 17.010 26.510 37.100 51.670 63.900 72.100 95.860

,;, source: CSIR, 1948, op. ci t., p. 185 + Source: kumar, Naresh, op./cit., p.24. for other years the data is collected from ~ll India Handicraft Board brought out every year.

166

reported that 80 per cent of the total export comes from

Moradabad- whether share of Moradabad in total export is

increasing or decreasing could not be ascertained. The

exprot data is presented in table 6.6

From table 6.6 it is clear that in pre-Independece

period the export of brassware never crossed Rs 1.5 lakhs

and had been unstable despite the efforts made b~' the

Colonial government through exhibitions. From the field it

is reported that often the brassware was carried to Saudi

Arabia by Hajis who visited Mekkah and brought imported

items in exchage of the money they received from brass

exports. To other countries the demand was almost

insginificant. However, after independence the efforts made

by the Indian government, started bearing fruits and

gradually the export picked up and diversified into many

European countries and the United States, beside the Middle

East countries. However, the progress of export had been

slow well upto 1974-75; thereafter it started picking up

fast, and reaching a record level of Rs. 96 crores in 1981-

82. The major importing countries of the brass artware are

the United States of America, West Germany, Switzerland, the

United Kingdom and the Middle East. The countries competing

with the Indian brass ware are Taiwan,

and Pakistan in these markets.

167

Japan, China, Korea

It is difficult to ascertain how much share of

this export comes from Moradabad. 39 Bhatnagar for 1969-70

and 1970-71 reports exports of Rs 4.50 crores and Rs 5.26

crores, respectevely which represented Moradabad share of

82.42 per cent and 80.92 percent, respectively. Also,

discussions with All India Handicraft Board official always

ascertained a figure of 80 per cent for Moradabad ware.

To spell out the economic structure of Muslim

entrepreneurship, the categories of entrepreneurs, namely;

artisan, karkhanadar and exporter, were cross - tabulated

against various economic indicators like the number of

units, size of emp 1 oymen t , investment, production,

earnings, total family income, and per capita income and

the results are presented in table 6.7.

All the economic variables represent annual

values, for which monthly average can be worked out, i f

needed. The table reveals very clearly that wide

disparties existed in each of the variables across three

categories of entrepreneurship, where exporter dominated the

economic structure, wi th better resources, better

production, and better earnings followed by Karkhanedars.

although they are also dependent to a grater extent on the

exporter. But because of relatively better resources. they

39. Bhatnagar, sp., op. cit., p.15

168

Table 6.7

Economic Structure of Entrepreneurship

--------------------------------------------------------Name of Artisan Karkhanedar Exporter Total the variable

No. of units 109 45 6 160

Average Empl-oyment 2 7 12 4

Average Wages/ Worker(Rs) 839 4664 6027 3451

Average Fixed Capital (Rs) 1656 14214 50833 7170

Average Working Capital(Rs) 235 11135 27233 7100

Average Prod-uction (Rs) 115360 290431 2350000 248398

Average Earn-ings (Rs) 14962 50467 278333 34824

Average Family Income (Rs) 18900 56671 361667 42377

Per Capita 2453 6819 28694 5276

Average Family Expenditure(Rs)10211 16538 27333 12633

are capable of producing for domestic market. and donot

always depend for work or orders from the exporters. as do

the artisans. Occasionally. these karkhanedars also provide

work to artisans on contract basis. But more offen both

these categories are dependent on the exporters. I tis

because of this differentiation. rather than production

169

processes, the whole analysis is geared to this structure of

entrepreneurship. All other categories like raw material

dealers, commission agents, ancilliary units were excluded

from the study, as Muslim in these types were rarely

represented in the brassware industry of Moradabad.

From table 6.7 it may also be noted that the

average anuual income and annual per capita income were not

low, even in case of artisans. The average family

expenditure figures imply reasonable saving rates. However,

this expenditure data was related to necessities of life.

The expenditures on festivals, recreation, social

obligations, bad habits like drinks, smoking and gambling

was told to be high during discussions, and in case of

artisans, it presented a higher proportion of the total

income. Hardly any savings were reported in case of

artisans, and not much of investment capacity was

reported. In case of Karkhanedars, some savings for re-

investment were reported. In the case of exporters the

reinvestment capacity was reported to be highest. Besides,

frugality was reported to be inversely related to the levels

of earnings.

I t is because of low savings a~ongst I

the lower

type of entrepreneurship, and because of the control of the

exporters on the artisans and Karkhanedars, the upward

170

occupational mobility from artisan, via, karkhanedar to

exporter was found restricted. Only a few artisans, and a

little more number of karkhanedars, were reported to have

moved to export oriented entrepreneurship. The mobility had

been greater from those engaged in trade, rather than brass

industry. However, more often, it was the family of

exporters that supplied entrepreneurs in subsequent years.

The upshot of this analysis of the economic

structure of entrepreneurship is that these three categories

constituted the structural elements of the brassware

industry. This structure was undergoing changes because of

the induction of new incentives, new occupational groups

like traders, more capital intensity, better technology and

better organisation. This changing structure was

influencing

industry.

the caste and community composition of the

In the next chapter, the social structure of

entrepreneurship is discussed, in the frame of this economic

structure represented

entrepreneurship,

exporter.

that

by

is,

the

artisan,

1 71

three types

karkhanedar

of

and