Mahaguthi aims to provide regular employment and support for producers throughout Nepal, encouraging the revival of cultural, artistic and craft traditions, and providing assistance in design, production and marketing.

Mahaguthi was established in 1984 with help from Oxfam U.K. and is affiliated to Nepal's oldest non-government organisation.

Assistance is targeted particularly to disadvantaged women handcraft producers.  Mahaguthi works with 150 groups and 700 individual producers, mostly in Eastern Nepal where women work at home using traditional skills

Women sheltering in the Tulsi Mehar Mahila Ashram, which shares the site of the Mahaguthi offices, learn skills that assist their rehabilitation and their ability to return to the community and support themselves through craft making.

Trading profits from Mahaguthi help fund the Ashram for destitute women and children.  The women may remain in the Ashram for up to 2 years, and their children may remain at school there for 10 years.

A wide range of products are made, with knitwear and gift items being the chief income earners, although paper does well in the export market.  Interesting use of local raw materials includes hemp products and products made from stinging nettle fibre.

Mahaguthi has 3 retail shops in Kathmandu.  In 1998, 53% of sales were in export, 40% in retail and 7% wholesale.  Future plans are to increase export sales and to target Nepali customers rather than tourists.