KOLHAPUR

Industry

Last updated on 20 July 2025. Help us improve the information on this page by clicking on suggest edits or writing to us.

Kolhapur district has a diverse industrial landscape that integrates traditional handicrafts with modern manufacturing. It is a key center for agro-based industries, engineering, and textile production.

Main Industries

Textile industry

Kolhapur district has seen significant industrial growth, particularly in the textile sector, with Ichalkaranji city being a notable hub for textile mills and industries. The region is recognized for producing high-quality cloth at affordable prices, with a substantial portion of the fabric in Kolhapur sourced from Ichalkaranji. Locals say the area boasts thousands of textile units, each generating lakhs of meters of cloth.

The textile production process involves creating three main types of yarn: cotton, polyester, and viscose, tailored to market demands. This is achieved using both man-made and synthetic fibers, particularly polyester staple fiber (PSF) as a substitute for cotton. Spinning mills, which are essential for yarn production, require significant investment, costing several lakhs of rupees.

The dyeing process begins with selecting the yarn, adjusting its size based on demand, and then processing it through various stages before finishing. Raw materials are primarily sourced from Tamil Nadu, while the dyed products are distributed to markets in Karnataka, Burhanpur, Malegaon, and Delhi.

Silver Industry

Hupari village, located in the Hatkanangale taluka of Maharashtra, is renowned as a leading market for silver jewelry, ornaments, and artifacts. The village boasts approximately 5,000 to 6,000 shops dedicated to silver jewelry making.

Designs are often customized based on customer demand, with influences from other regions such as Mathura and Agra. Kolhapur has its unique designs, including Painjan, Kardoda, Vala, Chaal, Chatai Painjan, Tode, Khushbu Patti, and Mangatya.

Retailers typically operate on a slim profit margin of 2% to 3%, as most expenses go toward labor, packaging, raw materials, and processing costs. Despite this, shop owners view the market as profitable and anticipate continued growth through evolving designs.

Spare Part Industry

In Kolhapur district, the spare parts industry is a vital sector, producing various components essential for machinery and equipment maintenance. These spare parts are crucial for the repair and upkeep of machines used in industries such as construction and agriculture.

The engineering industry in Kolhapur is crucial for manufacturing earth-moving spare parts, contributing to local employment while benefiting from government support aimed at fostering entrepreneurship. 

 

Local Industries

The 1960 Kolhapur Gazetteer also states that cottage industries were crucial for Kolhapur’s economy, offering jobs to different communities. Some of these cottage industries in Kolhapur include

Handloom Weaving

As documented in the Kolhapur Gazetteer (1960), handloom weaving was one of the most prominent cottage industries in the district. By 1956, it employed nearly 3,900 artisans, the majority of whom were engaged in weaving, while others specialized in winding, sizing, and dyeing. The district had approximately 1,905 handloom units and 75 power-loom establishments, with major centers of production including Ichalkaranji, Kolhapur, Rendal, Vadgaon, Kagal, Kodoli, Halkarni, Nandani, Bhirewadi, and Sarud.

Brick and Tile Manufacturing

The brick and tile industry was another thriving sector, primarily carried out by kumbhars (potters). These artisans, working independently in rural areas, produced earthen pots, toys, tiles, and bricks, while in urban centers, some were employed by contractors on a daily wage basis. By 1956, this industry supported around 6,000 artisans, with notable production hubs in Kolhapur, Vasagade, Halkarni, Kodoli, Rashiwade, Sarud, and Hupari.

Leather Working

Leatherworking was a well-established craft in Kolhapur, with around 3,508 artisans engaged in the trade. Skilled mochis (cobblers) or chambhars specialized in making and repairing footwear such as chappals and sandals. Kolhapur city, in particular, had gained prominence as a major center for footwear production, with 61 leather businesses employing approximately 285 individuals in 1947. Other significant locations for leather craftsmanship included Vadgaon, Ichalkaranji, Gargoti, and Nandani.

Tanning Industry

Tanning was a widespread activity in villages across the district, with families belonging to the Dhor community traditionally engaged in the trade. The key centers for tanning were Kolhapur, Vadgaon, Ichalkaranji, and Gargoti.

Rope Making

The rope-making industry flourished in Chandrapur due to the availability of sisal fiber plantations. Artisans, primarily from the Mang caste, were engaged in producing ropes of various sizes. Prominent centers for rope making included Alte, Vadgaon, Hupari, Kadoli, and Kabnur.

Blacksmithing

Blacksmithing was practiced in several important villages, with Lohar families manufacturing small iron tools such as frying pans and agricultural implements, as well as repairing metal equipment.

Carpentry

Carpentry was traditionally undertaken by sutar families, who were found in nearly every village. Each settlement typically had one or two families engaged in making agricultural implements and repairing houses. Some carpenters also performed blacksmithing tasks, such as fitting iron tires on carts.

Pohe and Churmure Production

The preparation of pohe (flattened rice) and churmure (puffed rice) was an important occupation in Murgund, Kolhapur, and Rashiwade. Paddy served as the primary raw material, though shortages during rationing periods posed challenges for artisans.

The Milk Industry in Kolhapur

The milk industry in Kolhapur is dominated by the Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd., popularly known as Gokul, which has become synonymous with quality dairy products in Maharashtra and beyond. Established on March 16, 1963, Gokul began with a modest collection of just 700 liters of milk per day from 22 village societies. Over the decades, it has grown into a vast network associated with nearly 385,000 milk producers, collecting milk from 4,977 cooperative societies across 307 routes in and around Kolhapur district.

The cooperative follows the AMUL model, organizing producers at the village level and aggregating them into district unions. This structure ensures rural milk producers have access to stable markets and receive fair, remunerative prices for their milk. Gokul also provides extensive support services to its members, including veterinary care, artificial insemination, cattle feed at no-profit-no-loss rates, and training in modern dairy practices. This holistic approach not only boosts milk production but also uplifts the socio-economic status of rural families.

Gokul operates a modern dairy plant with a processing capacity of 1.7 million liters per day, supported by satellite dairies and chilling centers with a combined capacity of 800,000 liters per day. It has also established a state-of-the-art packing unit in Navi Mumbai to cater to urban markets. Its product portfolio includes fresh milk, milk powder, ghee, butter, and other dairy products, serving both rural and urban consumers.

During peak seasons, daily milk procurement can reach up to 911,000 liters, with an average procurement ratio of 59% buffalo milk and 41% cow milk. Gokul has implemented advanced quality control measures and has won several national productivity awards for its performance. The industry’s growth has been further supported by initiatives like Operation Flood and the involvement of the National Dairy Development Board (NDDB), which helped finance and expand dairy infrastructure in the region. Gokul’s commitment to both quality and rural development has made it a benchmark for other dairy cooperatives in India.

Kolhapuri Chappal industry

The Kolhapuri chappal industry is a vital part of the local economy in Kolhapur, providing direct employment to over 10,000 artisans and supporting the livelihoods of thousands of rural families. Operating primarily as a cottage and small-scale sector, production is centered around family-run units and small workshops rather than large-scale factories. This decentralized structure fosters traditional craftsmanship but has also limited the industry's ability to scale up, modernize, and compete with mass-produced alternatives.

With an annual turnover of approximately ₹15 crore, the industry’s economic contribution is substantial. However, it has faced sharp declines in recent years due to multiple challenges. Demonetization led to a 40–60% drop in business, while the enforcement of the state’s beef ban disrupted access to quality leather, restricting raw material supply. These pressures have caused the number of manufacturers to dwindle, forcing many artisans either to abandon the trade entirely or switch to synthetic materials.

Kolhapuri chappals themselves are iconic handcrafted leather sandals that symbolize Maharashtra’s rich artisanal heritage. Their origins date back to the 12th century, when King Bijjala and his prime minister, Basavanna, encouraged the local cobbler community to produce durable and dignified footwear using traditional tanning and braiding techniques. Originally crafted by the Chambhar community, these sandals were designed for the rugged terrain of rural Maharashtra, offering comfort and longevity for daily use.

Over time, Kolhapuri chappals evolved from simple, functional designs into highly decorative items, showcasing intricate embossing, cutwork, and braiding. Historically, they were known by various local names such as Kapashi, Paytaan, Kachkadi, Bakkalnali, and Pukri, depending on their village of origin. The industry received significant support under Shahu Maharaj in the 18th century, who promoted the craft by establishing tanning centers, elevating the social and economic status of artisans, and popularizing the chappal among both the masses and royalty.

Despite its cultural and economic importance, the Kolhapuri chappal industry faces persistent challenges. The scarcity of genuine leather, exacerbated by stricter cattle slaughter laws, has increased costs and pushed many producers toward synthetic substitutes. Moreover, competition from cheaper, mass-produced footwear from neighboring states and the lack of effective government subsidies or tax relief have further strained the industry’s viability.

Efforts to revive the sector have been led by agencies such as the Maharashtra State Khadi and Village Industries Board, which have organized industry meets, promoted direct interaction between artisans and market representatives, and encouraged product innovation to align with changing consumer preferences. However, many artisans report that government support remains insufficient, and the industry still lacks the financial strength and institutional backing needed for long-term sustainability and growth. [For more information, refer to the Artforms Chapter.] 

Influential Families and Their Businesses

Kolhapur has been shaped by several influential individuals who have played a significant role in industrialization, engineering, and manufacturing. Their contributions have driven economic growth and technological advancements in the region. Some of the most notable among them include S. Y. Kulkarni, Mahadba Mestri, Y. P. Powar, Vishnupant Uthakur, Keshavrao Jadhav, Chandran Menon, and Ram Menon.

Graphs

Sources

Gazetteers Department, Government of Maharashtra. n.d. Kolhapur District Gazetteer.https://gazetteers.maharashtra.gov.in/cultur…

Gokul Milk Kolhapur. Abouthttps://www.gokulmilk.coop/

Rohit More. 2025. Unveiling the Legacy of Kolhapuri Chappals: Craft, Culture, and Commerce. Kolhapur District.https://kolhapurdistrict.in/kolhapuri-chappa…

Last updated on 20 July 2025. Help us improve the information on this page by clicking on suggest edits or writing to us.