When Sumita Ghose along with few others envisioned bridging the gap between rural artisans and the market, she was not sure about the path to follow. What she knew was she did not want to set up another non-profit organisation. That’s when the group came up with the idea of setting a community-owned craft company — Rangsutra. Today, over 2,200 artisans from remote regions of India — Rajasthan, UP, Manipur and West Bengal — are part of this growing company. “There are many NGOs working in various parts of the country towards rural empowerment which includes education, health and living conditions, but I felt there was a disconnect and many a time, providing sustainable livelihood was a small part of the bigger picture. Through our company we tried to give full attention to this segment,” shares Sumita Ghose, founder and managing director.
Rangsutra was created to ensure regular work and market access to artisans. She says “Artisans are co-owners and shareholders in the enterprise. They are part of board of directors and have a say in costing, planning, production and wages.”
Talking about how she raised the initial capital, Sumita explains, “When we were setting up Rangsutra 10 years back, a leading public sector bank refused a loan because there was no track record to show and neither did we have any previous experience of running a business. It was a risky proposition for the lender. And so the seed capital had to be mobilised from the artisans. About 1,000 artisans contributed Rs 1,000 each and I borrowed another Rs 10 lakh from family and friends to kickstart the firm.”
The idea was to help artisans generate sustainable livelihoods using traditional skills they already had, points out Sumita and adds, “Some of the main issues that women face in rural India are access to education, good healthcare and access to basic amenities like clean drinking water and of course livelihoods. Regular work gives them an opportunity to get out of their homes. Having income has given them more of a say in what the family decides.”
Talking about her experiences while working with artisans, Sumita recalls, “The module helps artisans take ownership of the company. They feel it’s their right to know how the company is doing and what are our future plans. A particular instance that I would like to share is of an artisan from Bikaner district of Rajasthan who has proudly framed the share certificate on the wall of her home. I was surprised to see it and thought she did not understand what it was. I asked her why she had framed the certificate, and she promptly replied, ‘I know what it is. I have framed it because this is the only punji (financial asset) in my name’.”
She adds, “The framed company share certificate prominently displayed on the wall of an artisan’s hut signifies a small but important transformation in many lives. For over 3,000 weavers, embroiderers and artisans who have formed the company, the shares are much more than just scraps of paper. Shares are their new savings, as valuable as the chunky silver they have invested in for centuries.”
Rangsutra, which turned profitable within three years of operations, has already provided multifold returns to its investor — Aavishkaar Venture Management Services, an impact investment firm. To add to its credentials, the firm supplies nearly 50 per cent of its products to FabIndia and have also partnered with Ikea.
Going forward they want to reach out to larger markets through their new collection ‘Be the Change’. “We have been supplying to different brands but after 10 years we realised that launching our collection should be the next step forward. With this we aim to reach out to as many markets as possible,” concludes Sumita.
