Khadi Franchise Opportunity – How to Open a Khadi Shop

KVIC (Khadi and Village Industries Corporation) is offering Khadi Franchise business opportunity throughout the country. Find here a detailed guide about how to open a Khadi shop with investment, profitability, ROI etc.

Basically, Khadi is a handspun, hand woven and skin friendly fabric. The Khadi and Village Industries Commission (KVIC) is a statutory body established by an Act of Parliament.

The KVIC is charged with the planning, promotion, organization, and implementation of programs for the development of Khadi and other village industries in the rural areas. Basically, it works with the coordination with other agencies engaged in rural development wherever necessary.

Its functions also comprise building up of a reserve of raw materials and implements for supply to producers. Additionally, the organization creates common service facilities for processing of raw materials as semi-finished goods. Also, provides the provisions of facilities for marketing of KVI products apart from organization of training of artisans engaged in these industries and encouragement of cooperative efforts amongst them.

Khadi Franchise Opportunity Details

KVIC under Ministry of MSIYE, Govt. of India through Khadi and Village Industry programs is looking for the franchise in district places & State capitals to stock and sell Khadi and Village Industries products on the franchise basis.

The store comes in the name and style of “Khadi India Outlets”. Interested individuals or proprietorship or Private Limited Companies or Limited Companies can apply in the prescribed format to the Director (marketing) KVIC.

Eligibility for Khadi Franchise Opportunity

  • You must be an Income Tax payee for at least 3 years.
  • Additionally, you must have a sound financial condition.
  • The authority will give the preference to those who have own air-conditioned show room /rented show room of minimum size of 1000 Sq, Ft. Additionally, who have the retail space at a prominent place.
  • It is better to have an experience of marketing of apparels/readymade garments/dress
    material etc.
  • Selected parties will enter into an agreement with the KVIC for a period of 5 years to sell Khadi & Village Industries products.
  • After selection, you must submit an application with a non-refundable tender fee of Rs.5000/- to
    Directorate of Marketing, KVIC, Mumbai on above address along with application form
  • You can get the application form, details of terms and conditions of Agreement at Website of KVIC at http://www.kvic.org.in/kvicres/index.html
  • The Tender Fees should be in form of at par cheque/DD. It must come in the name of Director ( marketing) payable at Mumbai/through NEFT in SB A/C no.10176548655 of State Bank of India, Vile Parle (West), Mumbai-400056 in favor of ” DIRECTOMTE OF MARKETING, KVIC, having CIF no. 80138251736, IFSC code SBIN0000515, MICR Code 400002083.

Also Read: Haringhata Franchise | Open a Meat & Chicken Shop Business

Terms & Conditions for Khadi Franchise Opportunity

Validity Period

This Agreement shall have a validity for a period of 5 years. However, the authority may further extend the period on such terms and conditions as decided by the Franchisor. Such

Moreover, if the franchisor is satisfied with the performance of the franchise and achievements of the revenue targets, they will extend the agreement. However, the Franchisor reserves the right to terminate the Franchise prematurely.

Security deposit

You have to deposit Rs. 10.00 Lakhs (Rupees Ten lakhs only) as “Security Deposit” within 15 days of signing this Agreement. However, you can pay the amount in the form of payment through NEFT.

The franchisor will provide you the stocks against Security Deposit. And they will provide the stocks of such products to the extent of 80o/o of the Security Deposit only.

Royalty

The Franchisor shall decide the MRP as per policy guidelines of Directorate of Marketing.

Sales Target

The Sales Target may vary according to the Geographical Area/Locality i.e. Prime Location, City, and Premises, etc. However, the franchisor will decide the minimum average sales target of Rs, 1.50 crore per annum (calculated at an approximate amount of Rs.50,000 per day. The franchise must achieve the “Minimum Sales Target”) within a period of 12 months from the day of operation.

Agency Commission:

The Franchisor will decide the trade commission on the Products/any particular Product. However, you will not get any rebate on Khadi product.

Transport

TheFranchisee shall at their own cost have to arrange their own transport to carry the goods from Franchisor to the Showroom of the Franchisee.Insurance –

Insurance

The Franchisee shall preferably Insure all furniture and fixtures and civil works at its own cost and expenses. The Franchisee shall at its own cost, preferably take out insurance for the value of the stocks, and cash available at the Showroom.

Placement of order

The Franchisee shall submit his indent to the Franchisor for the Products in advance to enable the Franchisor to procure the Products as per demand. However, the Franchisor will execute the indent against the amount of Bank Guarantee or cash payment.

If you want to start an apparel franchise business, you can consider this business. However, you must have the retail space and sound investment capacity for starting a Khadi Franchise business at your location.

Image Credit: kvic.org.in