Khadi sector scaling new heights even as FMCG giants incur losses

At a time when fast-moving consumer goods giant Hindustan Unilever Limited (HUL) posted a dip in its earnings, the Khadi and Village Industries Commission (KVIC) — which comes under the Ministry of Micro, Small & Medium Enterprises and plays a pivotal role in the development of rural industries, and empowerment of local populations through sales of khadi products and numerous other consumer goods — has posted a record revenue of Rs 1.7 trillion thanks to aggressive modernisation and realistic schemes.

KVIC, the agency at the forefront of the manufacture, sales and promotion of khadi in India, also sells a raft of consumer products — including soaps, oils, pickles, hair colours, cosmetics, shampoos, toothpaste, perfumes, honey, leather products, jute bags, face packs, incense sticks, teas, juices, puja articles, hand wash and sanitisers, silk products, pashmina shawls, among others.

It has seen its production rise fourfold in the past 11 years with a jump of 347% and sales fivefold with a jump of 447%. KVIC also employs 1.94 crore people, up close to 50% from 11 years ago.

The overhaul and modernisation of the entity was steered in the past decade initially by Vinai Kumar Saxena. Current KVIC Chairman Manoj Kumar said in a statement that the revenues of Khadi Gramodyog Bhawan New Delhi reached a record figure of Rs 110.01 crore.

While releasing the latest financial data, Kumar said that the schemes and achievements of KVIC have laid a “strong foundation stone” for the overall development of India.

Ironically, HUL, local subsidiary of the Anglo-Dutch company Unilever, has reported a decline of 3.35% in earnings at Rs 2,475 crore for the fourth quarter ended March 31, 2025, on lower margins. The private-sector company had posted a net profit of Rs 2,561 crore in the same quarter a year earlier.

In fact, KVIC’s trailblazing growth has given self-reliance a new meaning in the country, offering hope to millions of people in the countryside.

The KVIC Chairman said while releasing financial details, “The vision of a self-reliant India, rooted in the legacy of Bapu’s Khadi, is being realised through the transformative efforts under ‘Azadi Ka Amrit Mahotsav’ and the ‘Viksit Bharat’ mission.”

According to official figures, KVIC has made significant progress in empowering women artisans. Out of 7.43 lakh trainees in the past decade, 57.45% are women. Out of 5 lakh Khadi artisans, 80% are women. Wages of artisans have increased by 275% in the past 11 years. There has been a 100% increase of wages in the past three years alone.

According to a KVIC statement, the sales of Khadi garments saw record sales over the past 11 years. Additionally, more than 10 lakh units set up under the PM Employment Generation Programme (PMEGP) employ 90 lakh people. To provide employment to maximum number of people in rural areas under the Gramodyog Vikas Yojana scheme, KVIC has doubled the budget allocation for rural employment initiatives to Rs 60 crore in 2025-26, enabling it to distribute tools among MSME units, including power-operated pottery wheels, sewing machines, beehives and sandalwood machines.

FMCGHULkhadiKVICNews Briefpopularityrural employmentWeb Exclusive