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Jaipur  Rugs:  Doing  Well  by  Doing  Good  

A  Case  Study  1. Background

Jaipur Rugs is India’s largest manufacturer and exporter of hand knotted and tufted rugs and

carpets. Using fine handspun wool, silk and cotton, the company has created a rich heritage of

artistically designed, high quality rugs with sophisticated textures in homes located across 40

countries around the world.

Established in 1978, Jaipur Rugs is the product of its founder Mr. Nand Kishore Chaudhary’s

(NKC) enduring zeal to work selflessly for the upliftment of the poor, downtrodden, and

outcast sections of the Indian society. With its headquarters at Jaipur, the company has a

network of nearly 41,000 skilled, home-based artisans across eight Indian states that keep alive

the fine traditional art of rug weaving. Eighty percent of the artisans are women, mostly

residing among the disadvantaged communities of rural India.

The inclusive business model of Jaipur Rugs helps deliver value to the customers while

concurrently improving the living standard of the artisans. It facilitates the socio-economic

empowerment of the weaver community at the grassroots through the provision of round-the-

year employment. In the process, the company has woven happiness and smiles into the life of

tens of thousands of rural Indian artisans by providing them with a respectable and sustainable

livelihood, and also connected them with the global markets and the elite icons of the world.

Jaipur Rugs has successfully created a large-scale, global supply chain that harnesses human

skills and capabilities at the bottom of the pyramid (BOP). Through an innovative system of

organization, the activities of numerous geographically dispersed independent workers are

integrated together so as to produce a consistently high quality product.

The enterprise has established a robust mechanism to deal with the weavers directly, so as to

provide a fair return for their hard work and artistic creation. In doing so, it has virtually

eliminated the role of exploitative middlemen that are otherwise deeply involved in the carpet

trade. Further, the raw material for the carpets as well as the money earned by them is

delivered to the rural artisans at their doorstep.

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Jaipur Rugs manages an efficient as well as effective value chain that has enabled the

multiplication of the company’s revenues as well as artisan earnings over the years. It attempts

to match ensure and align the skills of its weavers with the needs of its customers.

In this endeavour, it abides by core social values such as equality of opportunity as well as

wages, skill enhancement, and the provision of welfare services such as health care and

education. The company not only employs traditional weavers, but also teaches the craft to

people who do not hail from a tradition of weaving.

While the organization has evolved over the years, compassion continues to run deep within its

veins. NKC treats the artisans very respectfully as human beings in their own right, and as

equals. From owner to weaver, Jaipur Rugs constitutes one large and happy family.

Having adopted “community service” as its motto, Jaipur Rugs enables the human

communities with which it works to grow hand in hand with its own growth and prosperity.

The company has managed to build synergistic and mutually respectful relationships with

thousands of partners and associates spread across eight states in India. Threads of love and

regard, woven by deft hands and deep hearts, bind its people together in a tight embrace.

Building up this Rs. 125 crore social enterprise that produces over 500,00 rugs per year has

been a journey and a labour of love, vision, and courage. Jaipur Rugs is a story of the triumph

of simplicity, determination and compassion over poverty, exploitation and ignorance.

2. The Genesis of the Enterprise

Mr. Nand Kishore Chaudhary (NKC) was born in 1953 in a traditional Marwari family at

Churu, in the Shekhawati region of Rajasthan. He completed his Bachelor’s degree in

Commerce, and began his career in the family’s shoe business. Meanwhile, NKC also spent

long hours contemplating upon the meaning of life. He read the Bhagavad Gita, and the

writings of Osho, Mahatma Gandhi as well as Tagore.

In 1975, he secured a permanent position as a cashier at the United Bank of India. To the

surprise and eventual dismay of his near and dear ones, NKC refused the job. His aspiration in

life was to do something on a much larger scale - as an entrepreneur. He reflected deeply upon

the nature of business that he might engage with. In due course, NKC heard that hand-woven

woolen rugs and carpets of high quality were in great demand. With its blend of economic and

aesthetic appeal, the carpet business appeared to be just the right choice for him.

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Armed with this clarity and determination, NKC borrowed Rs. 5000 from his father to set up

two carpet looms in 1978 within the courtyard of their house. He engaged nine trained, nimble

and hardworking but unemployed weavers to commence the enterprise, and soon fell in love

with the weaving business.

NKC picked up the nuances of the art of carpet weaving by observing the weavers at work.

He took time to sit, talk to, and even eat his meals with these craftsmen. NKC forged a close

and respectful relationship with the weavers, and gradually developed trust in their abilities.

This trust was duly rewarded upon the completion of the very first carpet, which had been

made to order for a Jaipur-based exporter. The buyer was so delighted with the quality that

he invited his own karigars (artisans) to inspect it. This gave NKC a lot of confidence.

He decided to expand his operations. Within the space of two years, 6 additional looms had

been acquired and the enterprise was thriving. The contractor supplied the raw material, and

NKC delivered high quality, finished carpets in return. By 1980, this operation was yielding a

net profit of over Rs. 30,000 per month.

2.1. Establishing the Business

NKC re-invested a substantial portion of these earnings into the purchase of additional looms.

He also ventured into the villages adjacent to Churu in search of good talent. While the village

artisans were desperate for work, NKC was careful to select and engage only with those who

had great passion and at least some discipline towards their work. Most importantly, the

individual also had to be a “good” person.

As the number of weavers and the worksites grew, a rudimentary management system was

created. One of the weavers was upgraded to the position of Quality Supervisor, and was

provided with a motorcycle for travelling to inspect the ongoing work at the looms. The

supervisor compiled a Production Progress Report (PPR) that mapped the square feet of

weaving per artisan, and was also tasked with making payments to the workers accordingly.

After 8 years of working as a contractor, with over 300 weavers and 100 looms under his

charge, NKC’s annual earnings touched Rs. 1.5 million. However, the business still rested

upon the greedy shoulders of the exporters.

This hampered the deeply idealistic entrepreneur’s aspiration to excel at his work, and also to

“make a difference” in the society at large.

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In 1986, in partnership with his brother, NKC decided to invest in additional looms as well as

raw materials so as to commence the direct export of carpets. After three years of effort, they

received their first direct order worth about a million rupees from a German customer.

There was a huge worldwide market for rugs that was waiting to be tapped, if only the

challenge of producing high quality handmade carpets on a large scale could somehow be

surmounted. NKC responded to the opportunity by making the state of Gujarat his main

production base. Accordingly, in 1990, he shifted his entire household to the town of Valsad.

The tribal people in Gujarat were artistic as well as loyal, provided that they were treated with

love and respect. Moreover, the state government provided training to the tribal artisans, and

even equipped them with carpet weaving looms for free. It took NKC three years to develop a

deep rapport and bond with the tribals, and to train them in weaving high quality carpets.

The Gujarat operation gradually scaled up. In less than a decade, NKC had trained 10,000

tribal weavers with over 2,000 looms. Production in far-flung villages was tracked by means of

communication over a wireless set. Two jeeps and twenty motorcycles ferried quality

inspectors over rocky terrain. A truck full of carpets was now being dispatched to Jaipur

every week for inspection prior to their eventual export.

The fledgling enterprise received a tremendous blow in 1999, when NKC and his brother

decided to part ways. Having focused primarily on developing weavers at the ground level,

NKC had acquired very little expertise in operating the commercial side of the business.

Nevertheless, armed with a few looms apart from twenty years of goodwill, he started all over

again. His genius helped notch up exports of nearly Rs. 4 crores in the very first year.

However, problems soon cropped up. NKC recruited professional managers to handle these,

but the malady turned out to be deadlier than the disease. These professionals came on board

with massive egos and expectations of their own. The business suffered as a result, and started

to make losses. At one point, it appeared that the company might even have to shut its doors.

In this grim situation, NKC turned inward once again for answers. He read the scriptures,

attended satsangs, and generally remained in communion with nature. These musings helped

him to discover the simple truth that all the limitations experienced by human beings actually

reside within their self, and not outside of it.

Before attempting to bring about change in the external situation, NKC realized that it was

necessary to first alter one’s own thinking and perspective.

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2.2 Organization Building

The philosophy that NKC eventually decided to adopt was that of “finding yourself through

losing yourself”. In practice, this translated as the giving up of one’s own sense of ego and

self-importance, and becoming more sensitive to the capabilities of other human beings.

This approach yielded phenomenal results. Among other developments, his children now

began to join the business - one by one. NKC’s eldest daughter Asha graduated with a BBA

from Emory University in Atlanta in 2002. She expanded the company’s customer base in the

United States from specialty rug stores to mass retail and interior designers. Asha also initiated

the process of modernizing carpet designs to suit contemporary tastes and trends.

The middle daughter Archana completed her BA in Textile Chemistry from North Carolina

University in 2004, and began to focus on Product Quality. She set up checks and balances at

every step of the production process.

The youngest daughter Kavita graduated from the Art Institute of Chicago in 2006, and

assumed charge of the Design Department at Jaipur Rugs.

The same year, NKC’s elder son Yogesh dropped out of Boston College to work full-time with

his father. He played a key role in the adoption of the Enterprise Resource Planning (ERP)

software by the company.

The entry of each of the family members created a visible impact on the business. In 2006, the

company underwent a major restructuring and a change in nomenclature from the erstwhile

“Jaipur Carpets” to the present “Jaipur Rugs”. The various operations of the Jaipur Rugs

enterprise are presently handled by multiple legal entities.

The Jaipur Rugs Company (JRC) is run by NKC along with his son Yogesh. JRC and its 22

branch offices take care of all the aspects of production - from raw material procurement to the

export of finished goods. Jaipur Rugs Incorporated (JRI) manages the sales and distribution

of carpets in the United States. Based at Atlanta, JRI is run by Asha and Archana Chaudhary.

Bhoomika Wools (BW) is the firm responsible for wool procurement and processing. The raw

wool is inspected and cleaned at its seven warehouses in Bikaner, before it is carded and spun

into yarn with the help of external partners. NKC’s brother-in-law Shri Navratan Saraf holds

charge of this entity’s management.

The final pillar of the enterprise is the Jaipur Rugs Foundation (JRF). Established in 2004,

this non-profit organization receives a percentage of the profits earned by the Jaipur Rugs

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Company. These funds are deployed towards the welfare, training and motivation of the

artisans. The Foundation also conducts medical camps and literacy classes for weavers and

their families.

The coordination of activities across the different operational groups provides the company

with access to the necessary skills, though not their ownership. The company also maintains a

significant influence over the key production processes, even though it does not control them

directly. Finally, this distributed approach helps to decentralize the investment.

3. The Technology of Rug Production

The process of carpet production begins with global sourcing of raw materials, and ends with

the worldwide distribution of the finished products. A series of over sixty intermediate steps in

this operation are governed by a comprehensive system of quality control and logistics.

Rug orders are received over the telephone or electronically, and the production process

begins after an order is generated by the Production Department. Wool is the primary raw

materials required for carpet production, and is sourced from auctions. The raw wool is sorted

and blended, before being sent for carding and spinning.

Carding is the process of brushing raw wool in order to prepare it for spinning. During the

carding process, the wool fibers are separated. Unwanted matter falls out, and the fibers are

then aligned together. This process can be done by hand or on a machine. However, hand-

carded wool makes for the best quality. In fact, hand carding is actually required for the rug to

be classified as authentically “hand spun”.

After the wool has been carded, it is ready for spinning. The process of spinning provides

consistent thickness to the yarn. The wool spun by hand is considered to be superior to

machine spun variety. The quality of the yarn depends largely on the passion and dedication of

the spinners. It takes a spinner nearly an hour to spin one kilogram of wool. The spinner

delivers the spun wool in a hank, which is a unit of yarn that is in a coiled form.

The next process is that of dyeing the wool in up to 3000 different colours. This is followed by

the procedure of “opening” of the yarn, whereby spindles are made out of the dyed yarn hanks.

The spindles are then stored in company’s warehouse until they are transported (bundled in a

bag with along with the design map) to any of the 7,000 looms across 600 villages in eight

states of north and west India for weaving. Artisans weave the rugs from a provided rug map.

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The quality of a carpet rests chiefly on its knots. As NKC says, “Funde ki nau barabar ho, lachche

ki jod barabar thuke, taadi ka tension barabar ho. Yehi basic cheezein mujhe samajh mein aa gayi.” (The

shape of the knot, the joint of the loop and the tension of the thread – these are the basic things

you need to get right). But the single most important aspect is the number of knots per square

inch. The more the knots, the more the detail, the more valuable is the carpet.

3.1 The Logistics of Rug Production

Each rug produced by Jaipur Rugs passes through a complex, geographically dispersed

supply chain. The company uses standardized as well as non-standardized processes for the

assignment and movement of the raw materials, work in progress, and the finished goods.

Numerous departments work in close mutual cooperation to run the complex operation of

carpet manufacturing.

Upon the receipt of a production order, the Central Control Room determines if an existing

design sheet might suffice in fulfilling the order. In case changes are required, the Design

Department initiates the preparation of a new “Map” or Build Sheet. These maps furnish the

weavers with easily understandable directions on where to put each strand of the different

colours of yarn.

A Raw Material Card is now matched with a design, printed, cut, then laminated for durability

and pasted together. In addition, yarn samples are stapled to help avoid errors in colour

selection. Prepared maps are centrally stored for future use.

The Production Department now determines the approximate geographic area in which the

rug will be made, based on the required type and the quality. The Raw Material Card along

with the Design Map and the requisite bundles of dyed yarn are packaged into a bag.

This parcel is sent out to nearest Branch Office in the geographical area selected for the

production of the rug. The local Area Commanders at the Branch Office assign a weaver to

the job - based upon loom availability, skill level, and the weaving speed. Because the map is

very simple, a weaver essentially needs no training to produce a new design on a given loom.

After the weaving is completed, the rug comes off the loom. The woven rug is then transported

to the Carpet Receiving Department at Jaipur, along with the design map and the leftover

materials (if any). From there, the woven carpet is dispatched to the Finishing Centre, while

the surplus materials are sent back to the Stores.

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At the Finishing Centre, techniques are employed to fix the residual mistakes and to

accentuate the highlights of the design. Rugs are washed to bring out the natural sheen in the

yarns used and dislodge any dirt from the weaving process. The completed rugs are evened

out, trimmed, inspected and prepared for export before they are shipped. The finished rugs

help transform the living spaces of the customers who purchase them.

 

4. The Operational Strategy

Jaipur Rugs facilitates an autonomous group of geographically dispersed artisans in

processing the provided raw materials into finished rugs of the finest quality. Its operational

strategy is founded upon four fundamental pillars. These building blocks are as follows:

4.1 An Innovative Business Model

Jaipur Rugs is a family business that stresses the importance of keeping family values alive.

The company seeks to empower every lady of the house by giving her access to a sustainable

livelihood at her home itself. It has tailored its operational model to honour the traditional

Indian community practice that encourages women to engage in productive work within the

precincts of the home, and refrain from stepping outside for employment.

Jaipur Rugs organizes for its business to travel to the doorstep of the weavers. Through a

grassroots network that requires specialized logistical support, raw material is dropped off at

an artisan’s home. Quality supervisors regularly travel to inspect the looms in order to ensure

consistent output while tracking progress. The artisans are thus able to work from home more

comfortably than most entrepreneurs and corporate employees across the world!

The supervisors ensure that the artisans are not interrupted by a shortage of yarn or any other

such disruptions to their earning capacity. They also make payments to the weavers every

month at their looms. When completed, the rug is picked up at the doorstep of the weavers

and passed on to the next stage of the rug making progress.

This way, more women can work towards financial independence – since they do not have to

navigate the commute. Further, mothers with young children have no trouble working and

weaving at the same time. Weavers also get to decide their own work hours, and can work

around their family’s schedules. Also, they lose no working hours in the processes of receiving

and transporting material.

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Jaipur Rugs deploys a number of different models to engage with the weavers. It has

established direct relationships with thousands of weavers, and indirect relationships with

numerous others through entrepreneurs. The company supports weavers in obtaining

government subsidies, helps to finance cost of the looms, and even lends its looms to deserving

weavers until they are able to purchase their own. The entrepreneurs are usually former

weavers who own multiple looms and employ local villagers to weave rugs on their looms.

In addition, middlemen facilitate about 20% of the company’s weaver relationships in

geographical areas where enough weavers cannot be independently located. Apart from these,

the company also gets work done through “outsourcing” partners that employ artisans.

The Jaipur Rugs enterprise has three kinds of employees work in the field. A Branch Manager

looks after the operations of each of its 22 branch offices. Most of them are former weavers

who were promoted over the years when they demonstrated managerial potential. Each

branch has a posse of Area Commanders who are responsible for maintaining communication

with the weavers in a given area. Finally, the JRF Motivators are responsible for recruiting

the weavers, managing their skill training as well as education on various beneficial

government schemes, and maintaining good relationships with the artisan families in general.

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4.2 Developmental Values

The company’s social values are manifested in the introduction of various developmental

initiatives for the artisan community. In line with its mission is to make a positive difference to

the lives of rural artisans, the JRF regularly organizes health camps to provide continuous

healthcare support to the entire village community. Apart from the treatment of general

ailments, those with severe health issues are referred to specialized hospitals for proper care.

The Jaipur Rugs Foundation (JRF) trains weavers who have no viable work employment

available to them within their immediate area. Potential artisans are identified through an

intensive campaign, and the mission of the Jaipur Rugs is explained to them. Skills training is

then imparted to the new recruits by the JRF staff members as well as other experienced

weavers. Through JRF’s intervention, these artisans thus gain access to a perennial means of

employment that is not dependent upon the vagaries of the weather or the season.

JRF conducts a six-month long Alternative Education Program (AEP) for illiterate artisans

and other village community members who have not completed primary education. The ambit

of this initiative is basic literacy and numeracy skills, as well as the development of an

understanding of health, hygiene, family life, education and the environment. The AEP

essentially seeks to build the confidence and self-reliance of the students.

The JRF’s Weaver Engagement Program introduces rural artisans to the entire process of rug

weaving, and giving them a holistic perspective of the contribution made by them. Members of

the company’s grassroots workforce visit the company’s Head Office to experience the art that

they create, and derive pride in their work. Women who had woven carpets for 30 years

without ever seeing a finished rug, or even stepped out of their village in their lifetime, are

mesmerized by the experience. In 2014, the JRF engaged 800 women weavers in this manner.

JRF also conducts management and leadership development programs for young women in

order to tap into their natural leadership ability. Most of the women weavers have never

attended school, and spent the greater part of their life in executing domestic chores instead.

This program helps build the confidence of these women to assume leadership roles in their

village, assists in subvert the traditional gender imbalance within rural societies, and prepares

them for assuming managerial positions. 108 women were thus trained in the year 2014.

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Financial inclusion has been a major gap area in the development of rural communities in

India. Jaipur Rugs identifies locally accessible banking services, and helps open bank accounts

for the artisans. From 2010 onwards, over 2000 Bank Accounts have been opened.

4.3 Low Capital Intensity

Jaipur Rugs works on very low fixed costs by decentralizing the work. Rug production is

done purely on a “pay for performance” basis, with payments determined by the quality and

quantity produced. Further, most of the manufacturing operations such as the dying, washing,

machine carding, machine spinning and most weaving looms are outsourced. Besides reducing

the capital requirement, these features also allow for significant operational flexibility.

4.4 Communications Architecture

A combination of human talent, an electronic network, and logistical infrastructure helps

Jaipur Rugs to institutionalize quality and to maintain its influence over the entire process of

rug production. The company’s investment in IT infrastructure includes an ERP system to

optimize its geographically diverse supply chain. Its well-designed communication network

facilitates the delivery of raw materials, regular communication with the weavers, and the

monitoring of the progress of the work that is happening in remote villages with limited

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resources. These communication channels are used by the company’s offices to effectively

manage a highly labor intensive process.

Another interesting process is the design and creation of the build sheets (known as “maps”)

that provide easily understandable instructions to the minimally educated weavers.

5. The Sustainability Challenge

In light of its noble mission, the main issue for Jaipur Rugs through its nearly four decades of

existence has been that of sustenance. This problem is likely to exacerbate in the future. Going

forward, some of the specific challenges that Jaipur Rugs might face are as follows:

In 2015, JRCPL was undertaking a capital expenditure of Rs. 15 crore in order to increase its

in-house manufacturing capabilities, thereby reducing the outsourced work alongwith the

concomitant job work expenses. This has largely been funded by internal accruals.

On the working capital front, the company’s Receivables Turnover period declined to 99 days

in FY15 from 123 days in the previous year, due to improved payment terms from its largest

client. However, this was offset by a significant increase in inventory levels (inventory days

increased to 160 days in FY15 as against 105 days in FY14), keeping the overall working

capital intensity at broadly the same levels as the previous year.

The capital structure of Jaipur Rugs continues to be leveraged, and vulnerability of the

company’s operating profit margins remain vulnerable to the movements in raw material

prices. Given the company’s reliance on exports, its performance is also impacted by adverse

forex variations (sharp rupee appreciation).

Intense competition in the hand-made carpet industry, and the high client concentration risk

by virtue of around two thirds of its revenues and receivables being derived from JRI are

some other concerns for the future. Two other specific challenges that the company is likely to

face are that of finding dedicated and loyal people at all levels of the organization, and of

finding ways to deepen relationships between its 40,000 virtual employees and its global

customers, as a key to sustainability and scalability

6. Accomplishments

NKC founded Jaipur Rugs upon the principle of preserving and enhancing human dignity.

He managed to subvert the antiquated social practices that shunned the poor, the women and

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the artists, and brought dignity back to the art and craft of rug making. As a result, 40,000

Indian artisans and the company’s clientele across 40 countries of the world today subscribe to

the philosophy of responsible manufacturing. Most importantly, the artisan incomes have gone

up as a result of the Jaipur Rugs activities. A snapshot of the same is as below:

Snapshot of 40,000 Contractors'

Production Activity # of Workers Average Monthly Incomes

Alternative Employment

Average Monthly Income from Alternative

Employment

Initial   sorting  of  raw  wool   50-­‐60   Rs  1050   Agriculture,  Government  schemes  

Rs  300*  

Raw  wool   washing   15-­‐20   Rs   2500-­‐3000   Work   in  similar  factories  

Rs  3000  

Carding  -­‐  machine   60   Rs  3000-­‐4000   Salesperson   Rs  3000-­‐4000  Carding  -­‐  hand   Included  in  

numbers  for  hand  spinning  

Rs  1100-­‐  1300   Agriculture,  Livestock;  Government  schemes  for  rural  employment  

Rs  300  

Spinning  -­‐  machine   50-­‐60   Rs   2500-­‐3000   Work   in  similar  factories  

Rs  3000  

Spinning  -­‐  hand   10,000-­‐12,000   Rs  1100-­‐  1300   Agriculture,  Livestock;  Government  schemes  for  rural  employment  

Rs  300  

Yarn  washing   Included  in  raw  wool  washing  

Rs   2500-­‐3000   Work   in  similar  factories  

Rs  3000  

Dying   35   Rs  3,000-­‐   Rs  20,000,  depending  on  skills.  Masters  are  the  highest  paid  

Unskilled/skilled  labor  in  factory  

Minimum  Rs  3,000  for  unskilled  labor  

Opening   200   Rs  1800   Jewelry  making  (in  Sarai  Bawri  village)  

Rs  1200-­‐1400  

Weaving   28,000   Rs  1300  –  3000   Handicraft   making  and  agriculture  

Handicraft:    Rs  1200;  Agriculture:    Rs  300  

Finishing   500   Regular   workers:    Rs  3000-­‐3500  /  Washers:    Rs  6000  

Similar  work  with  other   finishing  centers/factories  

Rs  3000  

Transportation   40-­‐50   (direct  and  indirect  employees)  

Rs  1155-­‐  up  to  Rs  8000  for  company  drivers  

Similar  transportation  work  

Rs  1155  

* Agricultural work is seasonal. So, the average monthly income figure has bee normalized per annum.

Owing to its innovative and socially beneficial business model, Jaipur Rugs has received

several awards for outstanding performance in the carpet industry.

The CNBC TV18 Emerging India Award conferred in December 2014 in recognition of the

company’s efforts towards the benefit of the society as well as the underprivileged. The

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NASSCOM Foundation presented the Social Innovation Honours Award to Jaipur Rugs in

2014 in recognition of the creative leveraging of Information and Communication Technology

by the company to create solutions that address gaps in social development.

Jaipur Rugs also won the Bihar Innovation Forum Award in 2014. Apart from this, the

IndiaMART “Leaders of Tomorrow Award” was presented to the company in May 2014.

NKC has ceaselessly championed the cause of the downtrodden and the socially

underprivileged people in India for nearly four decades now. His efforts over the decades have

been duly recognized. He was awarded The Times of India Social Impact Award for 2012 in

recognition of his efforts to provide livelihood opportunities for people living below the

poverty line in remote and distant areas. The Ernst & Young Entrepreneur of the Year Award

was also conferred upon NKC in 2010.

7. The Way Ahead

NKC looks upon Jaipur Rugs as an institution that is not merely a source of income or profit,

but a medium for putting human talents to good use and a way of life in itself. NKC’s vision is

to have one hundred thousand people working with Jaipur Rugs by 2020. He considers the

enterprise as an opportunity to promote holistic community development.

Going forward, NKC would like to enable the weavers to secure a greater share of the wealth

that they produce by making them stakeholders in the enterprise. He also considers it

beneficial to help establish an emotional connection between the end-users of the rugs and

those who actually make them. To that end, every loom is likely to acquire a barcode in the

near future. He also wants to examine the option of selling the products directly under the

“Jaipur Rugs” brand name. Jaipur Rugs has outlined six strategies to help meet their future

endeavors:

a) Expand the Core Offerings: Jaipur Rugs aims to offer a full product line of rugs, and also

expand the product line to include curtains, furniture and complete interior-decor solutions.

b) Country focus: Continued focus on penetration of the US market. Outside of US, focus on

seven high potential countries: South Africa, Turkey, Italy, UK, UAE, Japan and Germany.

c) Capacity Building: Make design as the company’s core competence by attracting new

talent and developing new creations based on customer insights.

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d) Adaptive Organization: Redesign the organizational structure in order to better align the

activities with the respective functions.

e) Efficient Supply Chain: Build distinct supply chains for low end and high-end products,

with a continued focus on three main aspects: a) time, b) transparency and c) trust.

f) Financial prudence: Exercise financial prudence by monitoring important metrics, and

build closer linkages to customers, employees and processes.

Jaipur Rugs is a social venture with a for-profit mission that allows rural artisans to make rugs

at home for export to foreign markets. The company identifies BPL communities, and aims to

employ unskilled, unemployed, and uneducated rural women from backward classes. While a

business approach is the key to its success, grassroots entrepreneurship is encouraged and the

workers are always given first priority.

NKC is often referred to as the Mahatma Gandhi of the carpet industry. This is the lasting

legacy of Jaipur Rugs.

References http://jaipurrugs.org/ Ac

http://www.jaipurrugsco.com

Prahlad, C.K. (2009), Jaipur Rugs: Connecting rural India to global Markets, Michigan Ross School of Business, Available: (http://www.bus.umich.edu/FacultyResearch/ResearchCenters/ProgramsPartnerships/IT-Champions/JaipurRugs.pdf) accessed 1 August 2015

An Interview with Mr. Yogesh Chowdhary, Available: https://pratibimbtapmi.wordpress.com/category/jaipur-rugs, accessed on February 20, 2016

Tyagi, Ruchi (2012), Sustaining by working at the bottom of the Pyramid: A case of Indian Rugs Manufacturing Company, Available: https://www.mruni.eu/upload/iblock/a09/3_Ruchi%20Tyagi.PDF , Accessed on February 17, 2016

Misra, H. & Choudhary, K. (2010), Opportunities and Challenges for ICT Mediated Innovations in Development Oriented Value Chain: The Case of Jaipur Rugs Company, Vilakshan: The XIMB Journal of Management;Sep2010, Vol. 7 Issue 2, p21

One Rug; One Story: Empowering the underprivileged to earn sustainable livelihood by means of carpet manufacturing. Available: https://www.changemakers.com/economicopportunity/entries/providing-sustainable-livelihoods-disadvantaged, Accessed February, 28, 2016

Bansal, Rashmi (2014), Take Me Home: The Inspiring Stories of 20 Entrepreneurs from Small Town India with Big-Time Dreams, Chennai, India, Westland Publishers