To cut costs and promote eco-friendly goods, IT companies have begun to buy substantial quantities of jute-based value-added products. The companies are saving 10 per cent over plastic and other non-eco-friendly products and orders to jute SMEs ranges from Rs 5 crore to Rs 8 crore.
Speaking to reporters at the ‘Jute buyer-seller meet organised by the Jute Manufacturers Development Council (JMDC), T Ayyappan, market promotion officer, said, “Nearly, 40 to 50 Bangalore-based IT companies are buying file folders and complimentary products made of jute. By buying jute products, these companies are finding savings to the tune of 10 per cent over plastic and other non-eco-friendly products.”
“Companies like Wipro, IBM and others have already discarded plastic file folders while handing over training materials to new recruits and trainees. IT companies preference to jute based products has become a lifeline for many jute small and medium enterprise (SMEs),” he added.
Value added jute product exports from India stood at Rs 1200 crore in the year 2007-08. This year JMDC is targeting 20 to 25 per cent higher exports. Kerala and West Bengal are the major exporting states.
“Kerala specialises in diversified products where as West Bengal has specialisation in making bags, both the state account for 70 per cent of the exports,” said Ayyappan.
Bangalore, home to major IT companies and having the biggest domestic market for jute products, has emerged as jute value-added design centre in the country. This has led to mushrooming of SMEs specialising in designs, offering better range and finishes than most other states. Value added jute products emerging from Bangalore are carry bags, dhurries, handicrafts, wall decorative, gifts, novelties, home textiles made-ups.
“IT company orders to jute SMEs is to the tune of Rs 5 crore to Rs 8 crore,” said Ayyappan.
