Beedi making may be in its extinction stage in this part of the country, but a diversification initiative launched by Kerala Dinesh Beedi (KDB), once a large beedi maker in the cooperative sector, 17 years ago has stood it in good stead.

Having survived the vicissitudes of diversification into unfamiliar sectors, the KDB Workers’ Central Cooperative Society, comprising 18 primary societies spread over Kannur and Kasaragod districts and parts of Kozhikode district, is now on course and planning to further expand its non-beedi operations.

With the decline in the once thriving  beedi production, the society’s turnover came down from Rs.100 crore to Rs.32 crore in 2007. The society has picked up the pieces since then.

“Our annual turnover today is Rs.85 crore, which is high for an MSME [micro, small, and medium enterprise] company,” society chairman C. Rajan told The Hindu .

Society’s target

The society’s target is to raise it to Rs.100 crore this year. The primary societies are being prompted to be part of the diversification initiative.

The umbrella-making unit was started with a production capacity of 20,000 umbrellas a year. The unit in last fiscal produced over one lakh umbrellas, the buyers being institutions. Started with 20 workers, it now employs 100 workers. The number of workers in its food processing unit has risen from 30 to over 100. Nearly 50 more workers will be required soon with the expansion.

The IT operations of the society, now confined to software solution, will soon enter into core-banking solutions to run ATMs of cooperative banks.

“Expansion of the apparels unit is in the pipeline as 90 per cent of our products are exported,” society secretary K. Prabhakaran said.

Shortage of operator-level workers in the apparel sector is the major handicap being faced by the unit, Mr.Prabhakaran said.

A major factor that helped the KDB society in its diversification initiative is its assets including the land and buildings it owned in the region.

source: http://www.thehindu.com / The Hindu / Home> National> Kerala /by Mohamed Nazeer / Kannur – August 14th, 2015