The need for higher level federations and the potential for such institutional mechanisms in leveraging on economies of scale to enhance the business viability of activity groups have been evident from the early stages of SAF. Major business processes are elevated to higher levels to the federations of activity groups for leveraging on economies of scale. Initially three regional federations have been formed under the common title ‘SAF Activity Groups’ Apex Federation – SAAF’. These are entities registered under the Charitable Societies Act.
SAAF has already started procuring raw materials and distributing to the various groups. This offers tremendous scope for improving the viability of the groups as well as in enhancing business margins.The SAF activity groups’ apex federation (SAAF) is being strengthened as a management institution focusing on procurement and marketing for the activity groups covering the entire state. This facilitates developing the leadership as well as a team of professionals specializing in categories at the federation level. Establishing reliable supplier relationships and specific tenure-based contracts with producer companies in other states are being explored.
The micro enterprises, formed under the Theeramythri program, has been categorized according to the nature of their business, and the units falling under each category has been grouped under the respective category federation. Each of the category federations is further combined to form Apex Federation. On the basis of the nature of business conducted by the micro-enterprises, five category federations have been formed. They are Fish & Fish Processing Category Federation(Thrissur), Food & Food Processing Category Federation (Kozhikode), Textiles & Garments Category Federation (Kollam), Supermarket & Retail Stores Category Federation(Kasaragod), Service & Others(Ernakulam). Each of the category federations is further combined to form Apex Federation.