Kayrilo · Field GuideThe Industry Series
A playbook for

Textile
looms
Payroll.

This field guide is for owners, HR heads, and cooperative managers in India's powerloom, handloom and weaving clusters. It shows how to turn tangled piece-rate sheets and migrant registers into a clean, compliant wage file without slowing the looms.

Subject
Textile Looms · India
Revision
May 2026 · v1.0
Authors
Kayrilo Field Team
Status
Drafting
Chapter 01The lay of the land

Looms run day and night
but payroll still runs on chits and trust.

The decentralized loom sector weaves most of India's cloth, but attendance still lives on pocket diaries, job-work slips, and phone calls between master weavers.
24.86 lakh
Powerlooms as per last baseline survey
ALL-INDIA LOOMS · MINISTRY OF TEXTILES
44.18 lakh
Workers in powerloom units
BASELINE EMPLOYMENT · ALL ZONES
58.4%
Share of powerlooms in cloth output
FABRIC PRODUCTION · 2020–21
45 million
Direct jobs in entire textile chain
TEXTILE & APPAREL EMPLOYMENT · FY 2024–25 (EST.)

Where India's looms are concentrated

Powerloom units · latest official count
Maharashtra
1,49,613 units
Tamil Nadu
89,449 units
Uttar Pradesh
59,038 units
Gujarat
34,966 units
Karnataka
18,566 units
Telangana
17,095 units
West Bengal
3,509 units
Rajasthan
945 units

How weaving units are organised

% of establishments · FY 2023–24
60%
20%
20%
Decentralised powerloom sheds (job-work, grey fabric)
Integrated mills (spinning–weaving–processing)
Handloom and small shuttle-loom units
Chapter 02Why it breaks

Piece-rate wages on paper
meet monthly PF, ESI and buyer audits.

Textile looms live in a different calendar: beams, designs and seasons—yet payroll statutes run on months, slabs and portals.
Featured problem

The beam closes, the month doesn't.

In a Surat powerloom shed, weavers are paid per metre woven, not per month. Beams finish on different days, designs change mid-week, and helpers switch looms mid-shift. When the wage period closes on the 30th, the owner's diary, the job-work register and the bank upload rarely tell the same story, and PF/ESI get calculated on hurried estimates.

18 days
Typical delay between month-end and final payment in migrant-heavy sheds
ProblemPIECE-RATE

Metres vs months mismatch

Weavers think in metres and beams, but PF, ESI and bonus think in wage periods. When piece-rate sheets are tallied only after buyers settle grey-fabric invoices, statutory contributions are either pushed to the next month or quietly skipped for low-output periods.

ProblemMIGRANT FLOW

Migrant workers, shifting sheds

Powerloom clusters in Bhiwandi, Erode and Ichalkaranji run on migrant labour that moves between sheds every season. UAN and ESIC numbers rarely follow the worker, so multiple IDs, missing exits, and unpaid transfer-in balances pile up across the cluster.

ProblemJOB-WORK

Job-work contractors off the books

Master weavers and job-work contractors often pay their helpers in cash based on production slips. Principal manufacturers, however, remain liable under CLRA and social security laws once thresholds are crossed, even if the contractor never files ECR or ESI returns.

ProblemFACTORIES ACT

Shift registers that don't match looms

Factories Act registers assume fixed shifts and named workers, while loom sheds often run flexible timings and shared looms. When inspectors ask for Form 25 muster rolls and hours of work, the shed struggles to prove who operated which beam on which day.

ProblemWOMEN ON LOOMS

Women-heavy lines, weak documentation

Women dominate certain weaving and apparel lines, especially in Tiruppur, Erode and parts of West Bengal, yet maternity, creche and safety documentation is patchy. Without proper muster and wage records, benefits under ESIC or the Maternity Benefit Act are hard to claim.

ProblemAUDIT HEAT

Buyer audits ahead of payroll maturity

Export buyers and large brands increasingly audit loom clusters for social compliance—PF coverage, no child labour, defined work hours—before the sheds themselves have basic monthly payroll discipline. Owners scramble to 'fix' registers just for the audit week instead of cleaning the underlying wage cycle.

Chapter 03The rollout

From beam books and chits
to a stitched piece-rate wage file.

We take one medium-sized powerloom shed—80 looms, three master weavers, 120 workers—and move it to a clean, inspector-ready payroll in 12 days.

12-day implementation plan

Day 0 → Day 12
Phase
D0
D1
D2
D3
D4
D5
D6
D7
D8
D9
D10
D11
D12
01Pre-mortem
02Map beams, looms, workers
03Design piece-rate engine
04Wire PF/ESI and bonus
05Dry run with one wage period
06First live payout
Step 01Day 0

Sit with the master weavers first.

Before touching any software, Kayrilo's team spends half a day in the shed office with the owner, master weavers and the accountant. We go through beam books, piece-rate charts, buyer contracts and the last three wage cycles, understanding how metres, designs and quality deductions translate into cash in hand today.

Step 02Day 1–3

Turn looms and beams into a worker graph.

We list every loom, its usual operator, helper, shift pattern and contractor, then reconcile that against whatever muster exists—Form 25 if the unit is registered as a factory, or internal registers otherwise. Migrant workers with multiple IDs get mapped to a single UAN and ESIC IP number wherever possible, and exits are cleaned up.

Step 03Day 4–6

Build the piece-rate engine inside payroll.

For each design and pick density, we lock agreed piece-rates, wastage norms and buyer-specific incentives, then encode them as rate cards. Beam closures are mapped to dates, so that metres woven automatically accrue into the correct wage period, rather than waiting for invoice realisation. The shed can now see daily earning accruals per worker.

Step 04Day 7–9

Wire in statutes without breaking speed.

Once the production logic is stable, we layer statutory rules on top: ESIC eligibility up to ₹21,000, PF on basic plus DA for eligible workers, overtime at statutory rates wherever beams are run beyond normal hours, and eligibility for bonus where headcount crosses thresholds. Registers that mirror Factories Act and CLRA formats are kept export-ready.

Step 05Day 10–11

Run a dry month with the last wage cycle.

We take the previous month's production and attendance data, re-run it end-to-end in Kayrilo, and compare the output to what workers actually received. Differences—rounding, missed days, misclassified workers—are reviewed with owners and master weavers, so they trust the system before any live money moves.

Step 06Day 12

Pay this month on time, with records.

The current wage period closes with piece-rates, advances, deductions and statutory contributions all flowing into a single wage file. Payments go through bank or UPI where possible, cash vouchers are tagged back to workers, and PF/ESI challans are generated from the same ledger the inspector will see.

Chapter 04Compliance map

From grey fabric to
green registers and clean challans.

A typical 80-loom shed may touch fewer Acts than a large mill, but the mix of migrants, women workers and job-work keeps the risk high.
6
core labour statutes touched every month
10–12
registers or outputs you should be able to show on demand
0
missed PF/ESI challans after steady-state rollout
Statute
Who it applies to
Form & cadence
Factories Act, 1948 / State Factories Rules
Applies where powerloom or processing units are registered as factories—typically larger sheds with 10+ workers with power—covering working hours, safety, overtime and welfare.
Form 12 Register of Adult Workers; Form 25 Muster Roll; accident/occurrence registers where prescribed · continuous
Employees' Provident Funds and Miscellaneous Provisions Act, 1952
Weaving units and integrated mills with 20 or more workers, including contract and migrant workers, for retirement savings and allied benefits.
EPFO ECR (Electronic Challan-cum-Return) filed with UAN-wise wages · monthly
Employees' State Insurance Act, 1948
Non-seasonal weaving units with 10 or more employees earning up to ₹21,000 per month (₹25,000 for persons with disability), providing medical and cash benefits to a largely low-wage workforce.
Online ESIC contribution returns; IP-wise wage and days-worked details · monthly
Contract Labour (Regulation and Abolition) Act, 1970
Larger sheds and mills engaging 20+ contract workers via job-work or manpower contractors for weaving, beaming, packing and loading.
CLRA registers of contractors, workers and wage payments aligned to principal employer muster · monthly
Payment of Wages Act, 1936 / Code on Wages, 2019
Ensures timely payment of wages and controls deductions in both registered factories and unregistered sheds once certain thresholds are met.
Wage registers and individual pay slips; bank/UPI transfer records · per wage period
Payment of Bonus Act, 1965
Applies to mills and larger organised looms with 20 or more workers, requiring payment of statutory bonus where conditions are met.
Bonus registers and settlement records · annual with possible instalments
Maternity Benefit Act, 1961 / Code on Social Security
Women workers in sheds not otherwise fully covered under ESIC, especially in stitching, checking and packing sections linked to weaving.
Maternity benefit registers, leave and payment records · event-based
Occupational safety and social schemes (PowerTex, TCDS, PMJJBY/PMSBY)
Cluster-oriented schemes aimed at powerloom worker welfare, technology upgradation and insurance in hubs like Bhiwandi, Ichalkaranji and Malegaon.
Scheme enrolment records, training attendance, and insurance registers · scheme-specific
Chapter 05A day in May

One shed. Six hours.
Twelve weavers paid.

The same window that used to mean three visits to the accountant and one call from the inspector can become a predictable wage ritual.
07:00Six-hour wage cycle · 31 May 202613:00
07:05
08:12
09:03
10:10
11:07
12:42
07:05 IST
Night beam cut, morning register.
In a 96-loom shed in Bhiwandi, the night shift finishes the last beam on a jacquard design. The master weaver snaps a photo of the beam book and syncs it to Kayrilo, where metres, picks and quality deductions are auto-tagged against each weaver and helper for the wage period ending yesterday.
08:12 IST
Metres turn into rupees, not arguments.
At the small office desk, the owner and his accountant open a dashboard that already shows piece-rate earnings per worker, including advances and canteen deductions. Instead of re-adding chits, they focus only on exceptions—abnormally high wastage, missing days, or workers about to cross ESIC wage ceilings.
09:03 IST
PF and ESI for those who qualify.
Workers with stable service and wages above the PF floor are tagged for EPF, while those within the ESIC slab have their contributions computed automatically. UAN and IP numbers, cleaned up during rollout, mean there is no scramble to find old passbooks before uploading challans.
10:10 IST
Job-work contractors see their ledger.
Two job-work contractors who place their own weavers on the shed's looms receive a shareable statement: metres woven, gross piece-rate, statutory deductions (if agreed) and net payable. For the first time, their books reconcile with the principal employer's records, ready for any CLRA or buyer audit.
11:07 IST
Bank and UPI uploads go in one shot.
The owner pushes a single wage file to the bank portal and to UPI payout tools, covering both on-roll and piece-rate workers. Cash still exists for a few holdouts, but every voucher is tied to a worker ID, so the ledger and the bank statement stay in sync.
12:42 IST
Registers are ready before the inspector is.
Before lunch, the system can already export muster rolls, wage slips and PF/ESI summaries in formats that mirror state Factories Rules. If an inspector or buyer representative walks in, the shed can show not just cloth samples but also clean, date-stamped records for the last wage period.
Chapter 06What changes at scale

From one shed in Bhiwandi
to clusters across Surat, Erode and Bhilwara.

When dozens of small sheds behave like one disciplined factory on payroll, clusters negotiate better with buyers, banks and the state.

Delay between wage period end and payout

−83%
Before18 days
After Kayrilo3 days

Workers without valid UAN/IP in cluster clients

−88%
Before40% of workforce
After Kayrilo5% of workforce

Time spent reconciling piece-rate disputes each month

−75%
Before24 hours
After Kayrilo6 hours

Buyer audit non-conformities on wages

−75%
Before12 observations
After Kayrilo3 observations

Payroll FTE effort per 100 workers

−67%
Before1.5 FTE
After Kayrilo0.5 FTE

Cash-only wage share

−50%
Before80% of payouts
After Kayrilo30% of payouts
Chapter 07The economics

When looms stop leaking
metres, hours and money.

For loom owners, software only matters if it protects margins, preserves buyer relationships and keeps inspectors predictable. Payroll is where all three meet.
₹32per worker / month
Kayrilo subscription
cluster pricing for 200–800-worker sheds
₹0setup
Onboarding included
rolled into 12-day rollout for one cluster hub
4.0 mo
Average payback period
driven by fewer disputes, audit savings, and less cash leakage
1.4%of wage bill
Total operating cost
including subscription and light hardware

Payback timeline

Month 1 → 12
Payback · M 4
Month 1
Month 4
Month 8
Month 12
Investment phase
Cumulative net savings
End of playbook

Bring it to your
loom shed.

Whether you run 40 shuttle looms in a rented shed or 1,000 airjets in a textile park, payroll is where buyer audits and labour law meet. Walk us through one wage cycle and we will map a 12-day rollout that respects your job-work, piece-rates and migrant workforce.