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Chapter 7
Lesson from Auroville
The success stories of the industries at Auroville is a living
inspiration for wannabe entrepreneurs. The Aurovilians are
constantly using their creativity in realizing the teachings
of Sri Aurobindo. This path breaking model of industrial
development is rooted in spirituality.
The entrepreneurs are pursuing Auroville's vision to achieve a
future of knowledge, peace unity, to make a place of joy
liberating one from the need to have any personal possessions,
to realize human unity and to move towards the world of peace,
friendship, fraternity and unity. The emphasis of
industrialization on sustainability, cleaner environment,
reasonable exploitation of natural resources, achieving better
human relations, are moving towards the realization of the
aforesaid goals. Every industry in Auroville is working in
pursuit of this vision in some way or another. They
participate in human relations, invent environmentally
friendly techniques of production or participate in social
development, apart from earning money for Auroville. The
experiences of Auroville are lessons, which are worth
emulating and have been discussed below.
Philosophical roots
Development of a vision
A sound conceptual and philosophical
base is needed for the development of industries. A conscious
industry with a vision takes into account the indigenous
people, the environment and the natural region around it. The
development of a strong vision for industrial development,
based on the philosophy and goals of the community is
required. The vision should address the 'way of life' the
community may adopt and the participation by the residents.
For example, Auroville believes in Karmayoga, in which work is
not a means for livelihood but a means of expressing oneself.
To be creative and conscious towards beauty,
self-participation or joy of doing work by one's own hands is
an Aurovilian's 'way of life'.
Leadership
There should be someone to hold the
vision, who regularly reminds the participants and monitors
them. Auroville is a very decentralized community. Aurovilians
are quite independent in taking decisions in their chosen
field of work but there are people who cherish, hold and
recall the vision regularly. In an enterprise, the
entrepreneur is expected to hold the vision and provide
leadership, though workers may participate in decision making
processes.
Framework and setup of Industries
Organizational structure
There should be a fine balance between
the freedom of and controls on an entrepreneur. Controls
should not be such that it stifles the spirit of the
entrepreneur. Freedom to do one's work is almost unlimited in
Auroville. Auroville is a decentralized structure. The
Auroville Charter gives the broad principles towards
realization of the vision but there is no written
constitution. Every participant is supposed to attune his/her
consciousness as per the Charter. Inspite of decentralized
approach, still there is not even one cooperative. Enterprises
are setup and run by people of entrepreneurial ability, who
establish them and make them a success against all odds.
People having entrepreneurial ability, belonging to the
community should be identified and encouraged and the
organizational structure should be supportive of
entrepreneurship.
Legal status
The legal status of Auroville
Foundation, being tax-exempt by an Act of the Indian
Parliament, has helped the industries to re-invest all their
income back into Auroville. The status of Auroville Foundation
is of national importance and industries operating as trusts
has been helpful in achieving this.
Institutional support
Though in Auroville considerable
autonomy exists for the entrepreneurs, there is an acute lack
of institutional support which should guide as well as share
some risks and losses. The need of an institutional support
for the industrial development, which should provide
management and strategic guidelines was expressed. This
support should be in the form of guidance and sharing of
risks.
Ownership rights
Lack of ownership rights is in tune with
the philosophy of Auroville. All immovable assets are the
property of Auroville Foundation. No one can put claim an any
building or land of Auroville. Thus the fixed assets are under
Auroville's control.
Regional resource
Regional Linkages
Auroville has the potential of being
accessible to all major regional nodes and cities either by
road or by rail. Accessibility by various modes is available
and it is used by the industries of Auroville to procure raw
materials as well as for export. Strengthening of existing
linkage and planning for the potential linkages will be help
in the development of industries.
Natural resources
Ideally, raw material should be
available within the immediate region of the industries. Most
of the Auroville industries fulfill the raw material
requirements from the surrounding region of around 300 km.
Moreover they are studying the potential of resources in the
region and the kinds of uses to which it can be put, so that
the whole region can be made self-supporting. Resource-based
studies for goods manufacturing can become the information for
the setting up of new industries.
Typology of industries
The experience of Auroville provides
insight for sustainable development of industries. The
development of industries should be a gradual process, keeping
pace with the development of the community.
Produce first what the community needs
Aurovilians have expressed that ideally,
identification of the genuine needs of the community and the
attempt to satisfy those needs through production, should be
the first priority. It is a step towards self-sufficiency and
the community should have a reasonable size to support the
service industries.
Produce from what is available in the region
The study of Auroville industries reveal
that for sustainability, emphasis should be on making products
which meet the needs of the visitors and the residents from
the locally available raw materials found in the surrounding
region only. It would be worthwhile to do a research for
proper usage of the local resources for producing goods.
Small is beautiful
Aurovilian entrepreneurs feel that the
scale of the industries, in terms of labour, production and
capital input, should be small so that it is within the means
of an aspiring entrepreneur and also can be managed by one
person. It also ensures strict control over quality and
production. Moreover, it generates personal and humane
relationships between employer and employee, making the work
place an arena for achieving greater brotherhood and
collaboration.
Backward and forward linkages
Though at a small scale, backward and
forward linkages may exist in rudimentary form, the emphasis
should be on establishing industries in which output or waste
from one industry becomes input or raw material for other
industries. Elementary linkages were found within the
Auroville industries. Groups of such industries should be
identified, so that agglomerations can be suggested.
Industries attached to a cause
The Auroville experience has revealed
that the industries can act as facilitators to a cause.
Instead of providing regular grants for functioning of social
services, like the health center or an educational
institution. a unit can be attached to it. The entire profits
accruing to the unit can go towards running and maintaining
the social service, so the burden on the town's financial
management lessens. Moreover the unit will also generate much
needed employment for local people.
Industries with a purpose
The study of Auroville industries show
that manufacturing units can also be established as a support
unit to a development scheme, for example, a unit is dedicated
to Matrimandir and Green belt maintenance and afforestation,
hence all the profit is donated for that purpose. This way a
business and manufacturing unit facilitates a developmental
purpose.
Industries and Social development
Image of the industries
The image that emerges in the study of
Auroville ads is not of a normal business and manufacturing
enterprise, where efficiency is measured in terms of
production, price quoted and the sales mark, but rather that
of an institution. The vision and ambitions being very
different from those of a normal business enterprise, every
industry participates in some way or another in research, in
innovation and in human development.
Human resource is an asset, not merely a means of production.
Industries in Auroville participates directly or indirectly in
the human development endeavour. This includes conducting
language classes, instruction in health, hygiene and
nutrition, and incentives for child education and child
nutrition. Ensuring job security leads to social and economic
security. This humane approach in taking care of the needs and
problems of the workers has generated a magnificent local
support for Auroville.
Empowerment of the weaker gender
Afforestation, industrial development
and employment of women, a socially and economically deprived
section in Auroville, has helped in the development and
empowerment of women in this region.
Marketing and Client relations
Creation of a brand name
Auroville products have become a brand
name known for better quality, use of environmental friendly
techniques and for aesthetic appeal. This is the 'unique
selling proposition', of Auroville products with a huge market
established in India and abroad. The creative and quality
goods ensure a clientele, there is virtually no need for
marketing these types of products.
Internal linkage
(export market, local market, local institution)
Industries in Auroville are operating
under one umbrella, hence apart from certain linkage in
production of goods, linkage is observed for marketing; for
example, a unit having an export license helps other units to
export through it. For local markets, they have a centralized
shop, i.e. boutiques in Auroville and Pondicherry. An
institution for export is not available to the Aurovilian
entrepreneurs.
Since local crafts and tradition were not in existence,
Auroville could not have any linkage with local institutions.
Innovation and Research
Industries can act as a cradle for
research. Auroville industries conduct research in
manufacturing environmentally friendly products and improving
the quality of products through sustainable means. In this
endeavor, some of them have innovated appropriate technology
suitable for the local environment. Being an experiment, there
are failures also but partial success in certain types of
industries has been achieved. The industries should be
motivated to do research and be innovative.
Environment
Environmental sensitivity and practice
is a 'way of life' for Aurovilians. Each entrepreneur not only
keeps an eye on the quality of his product but also traces the
disposal of the waste, so that in disposal or in recycling, it
may not harm the environment. In a few cases disposal of waste
from a particular type of industry was found to be different
from similar waste from another industry, as the former waste
contained hazardous chemicals. Industries should be encouraged
to keep watch on waste disposal and waste recycling.
Strengths
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Auroville located at a distance of
200 km, from Madras, enjoys relative proximity and good
accessibility.
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Other regional nodes Salem,
Pondicherry, Coimbatore are also accessible to Auroville
[by rail/road]
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A philosophical vision to support
Auroville's growth and development.
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Resource base was a group of
Westerners who were creative, pioneering and
entrepreneurial.
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A pool of labour was available as
their occupation was primitive and included foraging for
food.
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Afforestation empowered the women
folk, and they became available for handicraft industries.
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Industries come under the Auroville
Foundation, which is exempted from income tax.
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As ordained in the Auroville
Charter, no immovable property is in private ownership and
every fixed asset is the property of Auroville.
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The executive is the whole and soul
of the unit and acts as manager, planner and strategist
for the unit.
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The executive are autonomous enough
to take any decision for the unit apart from certain
restrictions on fixed assests.
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The boutiques in Auroville and
Pondicherry display the articles.
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Most of the executives being
westerners, export market was established through their
contacts.
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Most of the units being export
oriented there is no problem of getting paid on time.
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A variety of products are made under
one type of raw material, it ensures usage of waste and
leftovers
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The quality and perfection achieved,
the variety offered and the design make every piece of
handicraft a work of art.
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In terms of the use of local raw
material, reusing waste and recycling makes the process
sustainable.
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Auroville industries are labour
intensive industries and consume little machine power and
electrical energy
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The units are sensitive towards the
use of hazardous material and proper disposal of hazardous
wastes and reuse and recycling of the waste products is
done
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Making quality products from
materials which cost practically nothing and are locally
available or from wastes.
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Every executive tries to do research
in his/her own capacity and innovative to bring forth new
products of processes.
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Being labour intensive, Auroville
industries generate employment for the region, specially
female employment.
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Each industry acts as an institution
by providing some guidance and teaching to its employees.
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The industries being small scale
there is assembly line but no division of labour, hence
each worker knows the whole process.
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Auroville enjoys an excellent local
support.
Weaknesses
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Very few of the entrepreneur's had
prior knowledge about the respective craft and trade, so
they had to start from scratch.
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Raw material available were clay,
wood, grass, flowers, leaves etc.
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No skills existed among the local
populace.
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No market existed in the beginning;
being close to Pondicherry, a small number of visiting
tourists were their clients.
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The scale of industries and
agglomeration is too small to have forward and backward
linkages.
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No outlet at the regional level.
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Less effort by individual executives
to tap the national market.
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No effort in evolving a marketing
strategy for Auroville products.
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No strategy for advertisement of
Auroville products
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Very few industries follow any sales
policy like 100% advance payment. There is lack of sales
policy for the products.
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