Jaipur Rugs Case Study

1. A GROUP PRESENTATION BY –
 ADITYA JHUNJHUNWALA
 GULSHAN KAUR BHAMRA
 PROSENJIT ROY
 SHOUVIK SARAKAR

2. Jaipur Rugs was founded by N. K. Chaudhary in 1978,starting the carpet business with two looms. Over
time he moved to Gujarat and the business operations were expanded primarily in tribal regions.
 Mr N K Chaudhary moved to Jaipur in 1999, to launch his independent firm called Jaipur Carpets.
 Jaipur Carpets was converted to Jaipur Rugs Company Pvt Ltd in 2006.
 At present Jaipur rugs has businesses in more than 30 countries and touched a turnover of over
14 million $ in 2008-09.
 With over 32 years of experience, our products are a whole wide range of exclusive handmade
rugs that area doing homes worldwide. We believe in decorating homes with elegant styles,
luxurious comfort trickled with the essence of rural craftsmanship.
 Jaipur Rugs offers a whole new insight to discover the world through its products.

3. WOOL BEST QUALITY WOOLS SOTTING RAW WOOLS ARE CLEANED SPUNG INTO YARN
FURTHER SPUNED WOOLS ARE COLOURED DRYING ARTISANS WEAVE THE RUGS

4. RUGS ARE WASHED POLISHING CUTTING & TRIMMED PREPARED FOR EXPORTS
FINISHED PRODUCTS

6. PROS
 HIGH PROFIT MARGIN
 EXCLUSIVE & PREMIUM PRODUCTS
 WERE SUBSIDIZED 10-15% OF EXPORTS
 PROFIT REVENUE MODEL COTRIBUTION – 37% (FY-14)
 NUMBER ONE EXPORTER OF HAND KNOTTED CARPETS
 THIS PRODUCT LIFE LASTS BETWEEN 20 AND 100 YEARS
 COMPANY WEBSITE FOCUSES ON HAND KNOTTED CARPETS
 INDIA IS WORLDWIDE FAMOUS FOR HAND CRAFTED PRODUCTS
 GROSS MARGIN WAS 30-35%
CONS
 SALES VOLUME WAS LESS
 COMPLICATED PRODUCTION PROCESS
 WEAVING ONE KNOTTED CARPET TAKES TWO AND EIGHTS MONTHS
 TOO EXPENSIVE PRODUCTS WITH MAY COST AROUND 16000 PER SQ METER

7. PROS
 TUFTED CARPETS TAKES FIVE DAYS TO PRODUCE
 THESE CARPETS ARE CHEAPER – 1200 PER SQ METER
 THIRD – FORTH EXPORTED OF TUFTED CARPETS
 SALES VOLUME WAS HIGH
 WERE SUBSIDIZED ONLY 2.5% OF EXPORTS
CONS
 LOW PROFIT MARGIN
 PRODUCT LIFE SHEAL RANGES TO FIVE YEARS ONLY
 PROFIT REVENUE MODE CONTRIBUTED ONLY 33% (FY – 14)
 GROSS MARGIN 5-10%

8. AS PER THE SWOT ANALYSIS BETWEEN HAND KNOTTED VS HAND TUFTED RUGS OF JAIPUR RUGS,
THEY CAN KEEP BALANCE IN BOTH OR ELSE CAN EXCLUSIVELY FOCUS MORE ON HAND KNOTTED AS
INDIA IS A LAND OF VARIOUS AND EXCLUSIVE HANDICARAFTED PRODUCTS AND ALSO JAPUR RUGS
IS THE NUMBER ONE EXPORTED OF HAND KNOTTED CARPETS WITH A CONTRIBUTION OF 37% OF ITS
PROFITS. THE PRODUCT LIFE IS ALSO HUGE RANGING 20 TO 100 YEARS. AS IN CASE OF HOTEL
INDUSTRY IF THEY INSTALL THESE CARPET ONCE SO IT CAN BE USED WIDELY THUS HAVING LOW
COST USAGE. AS PER MARKETING MODE THE PRODUCT SHOULD BE UNIQUE AND NON COPYABLE
PRODUCTS AS IT GIVES COMPARETIVELY ADVANTAGES IN CASE OF HAND KNOTTED CARPETS OF
JAIPUR RUGS.

10. Shared values are organizational values that are usually developed by the organization's leadership and then adopted by
the other members of the organization. The values are shared and followed by all members of the organization when acting
on behalf of the organization. They may also be referred to as core values.

11. “Let goodness, fairness and most importantly, love prevail in business; profits will inevitably
follow.” – NK Chaudhary
Jaipur is the family’s business that combines the pursuit of profit with the spreading of
kindness in a way that benefits all of our stakeholders: our consumers and their families, the
artisans and their families, our employees, our suppliers, the buyers and channels we work
with.
A company cannot sustain with the motive of earning profit it should be empowerment of at
the bottom of pyramid.
MEASURES WHICH CAN BE ADOPTED
Thinker-Doer Exchange Programme
Artisan Engagement Programme
Proposing Weaving Work to rural communities
Train first time weavers

13. YES THE RECENT INITIATIVES WILL HELP IN STRIKING A BALANCE BETWEEN OPPOSING
VIEWS.
• The opposing views were that company was not able to decide between what
to produce exclusive either hand knotted or tufted carpets .
• The thinkers and doers were not able to know the views of each others mind.
• They were not able to stand by core values of the company.
• How to create core value in the mind of weavers and its customers ?

14. STORIES THAT INSPIRE
When Chinta Devi mastered the art of weaving in 6 short months, nobody was surprised. From a villlage
called Lalghad, she quietly emerged as a gifted weaver through her discipline, hard work and enthusiasm.
Before being training as a carpet weaver, Chinta Devi rolled bidis (hand rolled cigarettes), where she barely
made a living despite working long hours in an unhealthy environment. Unsatisfied by that life, she was
amongst the first to enroll when Jaipur Rugs opened a training centre in her village.
When asked the mantra of her success, she said “This has all been possible only because of the support
from my family.” Her family, especially, her sister-in-law takes care of the domestic chores while Chinta Devi
weaves. She hopes one day soon to give her four year old daughter-Saloni, the education she was denied
as a child.
THOUSANDS OF PEOPLE LIKE CHINTA DEVI NOW EARNED A LIVING AND EWRE HAPPY.

15. FINANCIAL INCLUSION
Financial inclusion has been a major gap area in the development of rural communities in India. Jaipur Rugs helps in the
process of opening bank accounts for the artisans. Locally accessible banking services (conventional as well as innovative)
are identified and artisans are connected with these institutions. During the last five years, over 2000 Bank Accounts have
been opened.
WEAVER ENGAGEMENT
A key differentiator at Jaipur Rugs is a keen focus in bringing dignity back to rug artisans. They worked as labor without
knowing the art that they were part of.
They worked as labor without knowing the art that they were part of. In 2014, Jaipur Rugs Foundation trained 800 women
weavers and brought a transformation not only in their lives but also in the lives of people around them.
YOUNG WOMEN SOCIAL ENTREPRENEURSHIP DEVELOPMENT PROGRAMME
Conducts management and leadership skill trainings to women of age group 18-35 in order tap into their natural leadership
ability. In 2014 108 women were trained to confidently take responsibility. This is the first step towards absorbing them into
managerial positions.

16. SGSY SPECIAL PROJECT
The 'Swarnjayanti Gram Swarozgar Yojana' (SGSY) is a Special Project under the adherence of Ministry of Rural Development,
Government of India. JRF was chosen as an agency to train rural youth living below poverty line (living under less than $2 a day) and
to transform them into skilled artisans in carpet weaving.
ALTERNATIVE EDUCATION PROGRAM
The 'Alternative Education Program' (AEP) provides functional literacy and numeracy skills to illiterate artisans and the village
community members.
HEALTH CAMPS
Through Jaipur Rugs’ network, free health checks up camps are organized in villages open to artisans as well as other residents of the
area. These camps also provide treatment along with free of cost medicines to the underprivileged members of the society.
ARTISAN CARDS
The Artisan Cards are issued to the artisans by Development Commissioner Handicrafts and the local nodal entities. JRF acts as a link
between the issuers and the artisans and bridges the gap by assisting the illiterate artisans fill out paperwork and expedite the process.

17.  IMPROVEMENT IN EMPLOYEMENT TURNOVER
 INCREASE IN ECONOMIC DEVELOPMENT
 PROMOTION OF VARIOUS HAND KNOTTED WEAVING
 FLURISHMENT IN EXPORTS RATES
 IMPROVEMENT IN STANDARDS OF LIVING
 INCOME ENHANCEMENT OF RURAL POPULATIONS