RURAL

ENTREPRENEURSHIP
PROJECT

A Comprehensive Study of
Terracotta Artisans
 OVERVIEW
This report summarizes the 10-day community-based
internship program undertaken by six members from three
terracotta artisants .The aim is to learn and gather
knowledge about rural entrepreneurship, their lives,
challenges, and growth strategies in rural area. We were
directly engaged with the artisans, gaining insights into their
craft, business processes, and cultural significance.
 INTRODUCTION
KALAIMAMANI N. SHANMUGAM, A RENOWNED TERRACOTTA ARTISAN FROM
PUDUCHERRY, HAS DEDICATED HIS LIFE TO PRESERVING
AND INNOVATING THE TRADITIONAL ART OF TERRACOTTA. INTRODUCED TO THE FIELD
AT THE AGE OF 9 BY HIS FATHER, G. NADESAN, SHANMUGAM'S JOURNEY BEGAN AMIDST
THE HARDSHIPS OF POVERTY. HE STARTED BY CRAFTING SMALL TERRACOTTA TOYS
LIKE KITCHEN SETS, WHICH HE SOLD DURING TEMPLE FESTIVALS. DESPITE HIS LIMITED
EDUCATION, ENDING IN 8TH GRADE DUE TO FINANCIAL CONSTRAINTS, HE HONED HIS
SKILLS THROUGH TRAINING AND GUIDANCE FROM EXPERTS, INCLUDING FOREIGN
ARTISANS AT GOLDEN PARK. HE HAS GOT HIS TERRACOTTA AND POTTERY
GOVERNMENT LICENSE.
OVERCOMING NUMEROUS CHALLENGES, INCLUDING WORKING UNDER A BARTER
SYSTEM AND FACING DIFFICULT LIVING CONDITIONS, MR. SHANMUGAM BUILT A
THRIVING CAREER. HE FOUNDED PRASANNA TERRACOTTA, WHERE HE INNOVATED
UNIQUE PRODUCTS, SUCH AS HANGING FLOWER POTS, VEGETABLE FRIDGES, WATER
BOTTLES, AND THE ACCLAIMED AISHWARYA DIYA WITH 36 DIYA’S.
RECOGNIZED WITH THE KALAIMAMANI AWARD IN 2019,MR. SHANMUGAM HAS ALSO
SPENT SIX YEARS AT THE ARTS AND CRAFTS VILLAGE IN MURUNGAPAKKAM,
MENTORING OTHERS IN THE CRAFT. WITH THE SUPPORT OF HIS WIFE AND NOW HIS SON,
HE CONTINUES TO INSPIRE AND UPHOLD THE RICH LEGACY OF TERRACOTTA ART,
DRIVEN BY HIS DEVOTION TO LORD MURUGAN. UNCLE INTRODUCTION
 GEOGRAPHICAL OVERVIEW
Climate:
• The climate of Pondicherry is classified by the Koppen climate classification as tropical wet And dry.
Summer lasts from April to early June.
• In terracotta business they will be producing their products only in summer.
• Minimum temperatures are in the order of 28–32 °C (82–90 °F). This is Followed
by a period of high humidity and occasional thundershowers from June till
September. Pondicherry gets the bulk Of its annual rainfall during the period from
October to December. In this period pottery and terracotta business falls more
challenges.
• Climate change make huge impact in terracotta and pottery business.
 SOCIAL STRUCTURE
The social structure surrounding terracotta and pottery in Pondicherry is characterized by a
blend of traditional and modern influences. Artisan communities, These artisans form the
backbone of the industry with skills passed down through generations in family-based
workshops. However, modern cooperative societies have emerged, supporting artisans and
promoting their work, thereby bridging traditional divides.
• During festival seasons the Pottery and terracotta business get more profit and there will be
more sales.
The social structure surrounding terracotta and pottery in Pondicherry is characterized by a blend of traditional and modern influences. Artisan communities, These artisans form the backbone of the industry with skills passed down through generations in family-based workshops. However, modern cooperative societies have emerged, supporting artisans and promoting their work, thereby britness traditional craftsmanship, and directly support the local economy, benefiting artisans and their communities. Additionally, terracotta and pottery products are eco-friendly, made from sustainable natural materials. Many artisans also offer customization options, allowing to create personalized pieces, making your shopping experience even more speci

• Tourist supporting the terracotta and pottery business in Pondicherry offers numerous
advantages can take home unique, authentic, and handmade souvenirs that reflect the local
culture. By doing so, you’ll experience cultural immersion, witness traditional craftsmanship,
and directly support the local economy, benefiting artisans and their communities.
Additionally, terracotta and pottery products are eco-friendly, made from sustainable natural
materials. Many artisans also offer customization options, allowing to create personalized
pieces, making your shopping experience even more special.
• The export of terracotta and pottery for other countries like Singapore, Malaysia, Dubai,
France. They will be only exporting natural products there will no artificial color in the
product
INFRASTUCTURE AVAILABILITY IN RURAL
AREAS
Workspace :
For storage of raw materials and finished products there isn’t sufficient space, but they
still manage to provide good quality works with their constant hard work. They must
receive adequate room for all production stages, proper ventilation, and storage facilities
to support their craft and ensure its sustainability.
Raw Material Processing Units :
Clay Grinders-Grind raw clay into a finer consistency which helps the artisans to make a smooth
and well-crafted potteries. Facilities for processing and preparing clay to standardize quality is
required to reduce the manual effort.
Storage Facilities:
Safe storage spaces to protect raw materials and finished goods from environmental damage,
such as moisture, and climate changes.
They do have a place to dry their craft work, yet it isn’t safe as it is an open space and when the
rain hits it may get destroyed. Without proper storage, semi-finished products may break or
deform before they are completed or fired. They would need a proper storage unit with climate
control to protect materials and products from environmental factors
 GOVERNMENT SCHEMS
1. Pradhan Mantri Vishwakarma Kaushal Samman (PM-VIKAS): :
The National Handicrafts Development Programme (NHDP) is a government
scheme that supports artisans and handicraft clusters. The National Handicrafts
Development Programme (NHDP) scheme offers end-to-end support to millions of
handicraft artisans. The Pradhan Mantri Vishwakarma Kaushal Samman (PM-
VIKAS) scheme will also help artisans improve the quality, scale, and
reach of their products.
2. Thozil mayam provides training for artisans and craftsman.
3. Arts and exhibitions provides an opportunities for this business to display their
products.
4. Handicrafts Development Scheme.
5. Prime Minister's Employment Generation Programme (PMEGP)
6. Crafts Village and Rural Craft Hubs.
7. Skill Development Initiative (SDI) by Ministry of Skill Development and
Entrepreneurship (MSDE
 CONSUMPTON PATTERN
1.Consumer perception and their behavior :
Consumer perception differs from person to person some customers prefers less pricin
g where some prefers high quality and finishing During local festivals and cultural rituals,
such as Diwali, karthigai deepam ,Pongal ,marriage events customer used to buy more clay
and pottery products.
2.Raw Materials Primary Consumption:
Clay, water, natural dyes, and firing materials like wood or cow dung are essential. The
clay are taken form lake and the terracotta raw materials is made by 3 types of
soil red soil ,black soil, clay etc.
3.Tools and Equipment Traditional Tools:
Hand tools like wooden molds, carving tools, and spinning wheels, cutting wire,
thattu palagai, karungal, konthukolai, pusuvalai and pottery wheel were used in
the making process.
4.Energy-for production:
Firewood, cow dung cakes are traditionally used, though some are transitioning to gas
or electric kilns
 STATUS OF WOMEN
• The status of women employment in this workplace has plays a
crucial role.
• Around 4 to 6 women has been working here.
• Their skills are not passed down through their generations as
they are only new to this workplace and for this skill.
• Although it is very hard to learn this skill but still, they have
been learnt it from the scratch to work here.
• The salary is based on their time rate hours, here the
employees work 8 hours a day.
• Here the women employees rely on terracotta work to
supplement household income.
 SWOT ANALYSIS
STRENGTH:
• Traditional and ethnic craft, Skilled artisans.
• Easy availability of raw materials ,Environmentally friendly.
• Only a few machineries required for the production.
WEAKNESS:
• No marketing awareness and dependence on other organization to sell
the produts
• Involvement of third party or a mediator for the marketing.
• Lack of finance caused because of Low product diversification.
• Even though there are schemes to fund the poor artisans, unfortunately the
banks are not willing to provide loans for them
• Lack of unity and trust.
• Lack of advance skills and tools due to Illiteracy and lack of awareness
 OPPORTUNITIES:
• Huge market potential.
• Blooming demand of Eco-Friendly products.
• Support from Government to Handicrafts sector.
• Vast innovation possibilities combining technology and marketing.
• Mr. Shanmugam has received more opportunities and got recognized after receiving
Kalaimamani award
THREATS:
• Competitors has become the major threats in this business.
• Auroville pottery and terracotta business and Gujarat business were their most significant
competitors
• Localized availability of raw materials which may be gone dry in the future.
• Confinement of the skill to some villages and the younger generation are not interested to
• adopt the traditional skill for their livelihood.
• Lack of marketing activities and design inventions according to the need of today
and tomorrow.
• Seasonal employment in Crafts.
 MARKETING STRATEGIES
• More than media promotions Word of mouth made their business more
popular with help media and channels they use to promote their business.
• They use social medial platforms like Instagram to showcase their products
through photos, videos, and live demonstrations.
• They used to participate in exhibitions and craft fairs to display product
and interact directly with customers.
• They focus on making unique products like clay refrigerator and more
products.
• The products were unique, such as handmade quality and eco-friendliness.
 FINANCIAL STRATEGIES
Mr.Shanmugam determines cost of particular products through these
following ways:Labour cost: To manage labour costs, he pays workers based
on the time wage system. For a day he pays the master RS.1200, well trained
workers RS.400, employees RS.350. The wage changes according to the
hours they work in a day.Expenses: He incurs operational expenses,
including a monthly rent of ₹2,500 for his stall that includes electricity, water
and maintenance. The primary expenses he faces is the high cost of raw
materials, as the required soil must be purchased from landowners at a fee,
tools and packing materials.Transportation: The transportation cost has
been taken care of the consumers themselves. Herein, the high price of
terracotta products is justified by their handcrafted nature, quality, and the
significant time invested in their creation .Reserves & Profits- They reserve
the profit that they receive during the summer season and use it in the further
investments.
 TAX IMPLICATIONS
Prassana terracotta company does not pay any taxes for
procuring raw materials but 5% of GST has been levied for sales.
Government provides some tax exemptions such as tax
deductions for raw materials and supplies , equipment and tool
purchases, studio rent and utilities these tax exemptions can
encourage the continuation of traditional pottery and terracotta
practices, promoting cultural heritage and diversity
 LEGAL CHALLENGES
• Limited access to capital and difficulty in securing loans or investments due to perceived risk or
lack of collateral . only limited funding opportunities were provided by government.
• Lack of insurance ,Uninsured pottery and terracotta business brings personally liable for damages
or injuries caused by their products or operations. Without insurance, pottery and terracotta
businesses may face financial ruin in the event of accidents, damage, or losses and may struggle to
recover from unexpected events, such as studio damage or equipment failure.
• Pottery and terracotta businesses were not recognized as priority sectors for disaster relief.
Government funds for disaster relief may be limited, leaving pottery and terracotta businesses
without adequate support and even the process for applying for disaster relief funds may be
cumbersome, deterring pottery and terracotta businesses from seeking assistance.
• Pottery and terracotta businesses do not receive government subsidies or grants to support their
operations and there are no tax incentives or breaks provided to pottery and terracotta businesses.
The government does not promote pottery and terracotta products in international trade fairs or
exhibitions.
OBSTACLES
• there is no recognition has been given by government for their work and there is lack of workplace
facilities.
 SOCIAL BENIFITS
Prassana terracotta company helps in preserving traditional techniques ,methods
and promotes cultural heritage , diversity and also supports artisan communities and
their livelihoods.
• Mr.shanmnugam has provided skill development opportunities regarding
traditional crafts and their making process to artisans, craftsmen, and to other
peoples through conducting workshops and classes.
• This contributes to local economic growth and development pottery and terracotta
products can be exported, generating foreign exchange earnings.
• These businesses typically have a low carbon footprint compared to other industries
and helps to reduce waste by using recycled material In Pondicherry Pottery and
terracotta businesses attracts tourist and generates revenue by purchasing local
pottery and terracotta products this supports local economies and the government .
• These businesses offer cultural experiences for tourists, promoting cross-cultural
understanding.
• Tourists can purchase local pottery and terracotta products, supporting local
economies.
• This traditional business reduces unemployment and promotes economic growth.
 CONCLUSION AND SUGGESTIONS
This community based internship helped me to gain knowledge about pottery
and terracotta business, Its benefits , challenges , making process.
Infrastructure development ,financial support ,marketing and promotions ,skill
development and training ,regulatory frame work were need to be developed
by the government as Pottery and terracotta businesses play a vital role in
preserving traditional crafts, promoting cultural heritage, and contributing to
local economic growth. Despite facing challenges such as lack of insurance,
limited government support, and tax burdens, these businesses continue
to provide numerous societal benefits .
Thank
You