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Chapter 6

Keys to the success of Auroville's Industries

It is seen that after 30 years, Auroville has had a mixed bag of success and failures as far as the industrial units are concerned. Some are failures in the sense that only 25% of the units are making extremely good profits and 25% of the units are just struggling to make ends meet. However, if we dwell on the success stories of Auroville and the factors responsible for the same, the following aspects need to be emphasized.



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Human Spirit

A common strand, which runs across all the units' stories, is the saga of individual spirit and quest for doing well and contributing to Auroville's success.



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Creativity and Innovation through research and development

The experimental character of Auroville as a site of 'material and spiritual researches' which is embodied in the Charter of Auroville, has contributed in no uncertain measure to the innovations and environmental friendly processes of various products in Auroville.

Certain Auroville products are harbingers of innovation, which has led to their being plagiarized in the national market. Maroma, which have a worldwide clientele for its aromatic products, has reached this stage through sheer dint of research and innovations. Some products have discovered potential from wastes or ordinary organic matter that can be found in anybody's backyard like Aditi (Applique making) or Shraddanjali (Pressed flower cards) for that matter. Matthias of Altecs, worked in a German firm's RandD and developed a design for solar inverters which he transferred to Auroville and generated his own prototype.



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Quality

This attribute has been the hallmark of all the products in Auroville, noted for their exquisite and quality products. Most of the entrepreneurs say that quality is the USP of their product and would not compromise on it at all, even if it means rewarding excellence or punishing sloppiness of the workers. Knowledge of the expected quality of the product is again due to the background of the entrepreneurs by virtue of their having been brought up in western countries.



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Export Potential

More than ¾ of the gross turnover of the industries are in the form of export sales. This has been rendered possible by the networking of Aurovilians with the markets in the west, mostly Europe and by knowing the potential existing in these markets for the kinds of products made. Thus, Auroville has over the years acquired a brand image of high quality, environmentally friendly products, which they exploit to the hilt.



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Legal Status of Aurovilians

Under the Auroville Foundation Act, which was ratified by India's Parliament, the Government of India is obliged to grant residential permits to Aurovilians, provided they live and work in Auroville as Honorary Voluntary Workers. Also all the commercial units come under trusts, which in turn come under the broad umbrella of the Auroville Foundation. Since all assets under the Auroville Foundation are income-tax exempt, no unit pays this form of tax. This coupled with the fact that most of the units are EOUS, they fall outside of the scope of sales tax. They pay sales tax only for what is sold in the Indian market. They are required to pay 33% of the unit's profits to the Auroville Foundation. These factors have ensured that money to a large extent remains within the Auroville community and the immediate region.



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Goodwill from the local villagers

Auroville enjoys tremendous goodwill with the local villagers. This is by no means a smal feat and has resulted from a sea-change in the physical and mental makeup of the place and its people. One of the main reasons has been the social and economic benefits which have accrued from the massive afforestation program run by Auroville's pioneers. Secondly, the means of earning a livelihood, which was primitive in the pre-Aurovilian period, has metamorphorsized into secondary and tertiary forms of livelihood like blue collared or white collared jobs. In addition, many businesses with the help or inspiration of Auroville, have sprung up in villages. This has led to a growing mutual understanding notwithstanding huge cultural differences. From Auroville's point of view, the villages represent a ready pool of labour that can be imparted with simple skills such as embroidery or soldering or something else that is required by Auroville's units. Above all, Auroville recognizes its interdependency with the local population and knows that in the long run, both the villagers and Auroville have to evolve together.



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Social Net for Workers 

The various perks, salaries and post retirement benefits which an average worker in the industries gets, is one of the primary reasons for his/her satisfaction and motivation. The workers are also conscious of the fact that their boss cares for them and would like them to be part of the success. The appreciation of the local workers in what Auroville is doing may be one of the reasons why there have been few labour unrest problems.

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