The Hindu Business Line : Banking on `gift emotions'

What is the point in giving a China-made torchlight or an umbrella as a corporate gift? Concerted efforts have begun in right earnest to din this idea into people's minds. Tsunami came in handy, as a brand to sell emotions — `present your customer this bamboo lamp shade, made in Nagapattinam and you will be helping a family that suffered Nature's wrath.'

Companies are buying the idea. Recently, the Aban group of companies placed an order, worth Rs 2 lakh, for corporate diaries with handmade paper produced by a women's self-help group in Madurai. Another Chennai-based medium enterprise, Inca Hammocks, also bought some quantities. What was the impact? Gratifying income to some 60 poor families.

The L.G. Balakrishna group of companies of Coimbatore placed an order for a hundred bamboo-bodied ballpoint pens from Uravu, a Trust based in Wayanad, Kerala.

But the `gift emotions' message has also gone beyond the borders. Recently, a UK-based company called Green Stationeries placed a trial order for 100 bamboo pens. It is only for starters — chunky business is expected to follow.

Pens, pen stands, wicker baskets and caskets, lamp shades, hand fans, diaries — a big range of handmade products from interior India — are now finding their way to more remunerative markets.

At the centre of it all is an unlikely catalyst - the Exim Bank of India, whose mandate is to provide finance to overseas buyers of Indian goods. Over the last one year, the bank has formalised relationships with NGOs, who in turn work with thousands of self-help groups.

Here, the bank does no financing — the sums involved are far too meagre for Exim Bank's financial involvement — but its presence and clout make markets for the goods. The green stationeries business, for example, was got through Exim Bank's London office.

In October, Exim Bank entered into a Memorandum of Co-operation with the Dhan Foundation of Madurai, under which the foundation would interface with SHGs, impart skills and the bank would help sell the products.

According to K. Muthukumaran, General Manager, Exim Bank, in the last four months goods worth Rs 5 lakh have been sold — a princely sum in the rural context.

"It is important to note that these goods would have otherwise fetched a small fraction of the revenues," notes Muthukumaran.

Enthused, Exim Bank entered into similar tie-ups with Uravu of Kerala and Basix, Hyderabad.

Last week, it entered into an agreement with Care India, part of CARE "an international relief and development organisation."

In India, Care works with over 450 NGO partners, 75,000 self-help groups and over two million clients.

These efforts have started to show results. The bank and Basix are working for developing an export cluster for stoneware and dhurries in Rajasthan.

Alongside, the bank is talking to leading hotel chains in the country for another experiment.

It works like this: a large number of international visitors to India are business visitors. Much as they would like to go round the place, shop a bit and pick up souvenirs for folks back home, they do not have the time.

But keep the few articles on the desk in the rooms for sale, there is a good chance that they might bag it and pay as they check out, much like how you sell liquor and chocolates off the mini-bars in rooms.

And what have you? A bamboo pen stand that may have fetched Rs 5 on the pavement market, may rake in Rs 500! Even if the hotel takes a cut, it is a sackful of money for Muniyamma of Vellampatti village.