Jaipur Rugs
Encyclopedia
Jaipur Rugs is a socio-economic business model
based at Jaipur
, India
dealing primarily in floor coverings. It is intended to connect the rural poor of India to the Affluent World through the traditional art of carpet
weaving
. Headquartered in Jaipur, they have their operations encompassing a rich 40,000 independent weaver base spanning 10 states across India.
is the Founder-Chairman & Managing Director of Jaipur Rugs. He founded the company in 1978 with just two loom
s and nine artisan
s. With his vision and under his leadership, Jaipur Rugs has evolved as a successful leader in the carpet industry. He has been awarded the Ernst & Young Entrepreneur of the Year Winners – 2010 for the best Start-up.
industry where the carpet-weaving used to take place through contractors. These contractors in turn get the weavers weave the carpets in return for measly wages for highly-skilled labour. Jaipur Rugs did away with the middlemen by establishing direct link between the weavers and the company. The Jaipur Rugs business model has connected rural poor with markets of the rich, through the development of a global supply chain, built around mobilizing human capability and skills at the grassroots level and finding steady jobs for rural men and women in the most depressed parts of India.
included a case study of Jaipur Rugs in his book The Fortune at the Bottom of the Pyramid
citing it as an example of a social business
which helps in tackling world poverty. The Jaipur Rugs Case Study is acclaimed to be the best success story at the Bottom of the Pyramid.
Business model
A business model describes the rationale of how an organization creates, delivers, and captures value...
based at Jaipur
Jaipur
Jaipur , also popularly known as the Pink City, is the capital and largest city of the Indian state of Rajasthan. Founded on 18 November 1727 by Maharaja Sawai Jai Singh II, the ruler of Amber, the city today has a population of more than 3.1 million....
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
dealing primarily in floor coverings. It is intended to connect the rural poor of India to the Affluent World through the traditional art of carpet
Carpet
A carpet is a textile floor covering consisting of an upper layer of "pile" attached to a backing. The pile is generally either made from wool or a manmade fibre such as polypropylene,nylon or polyester and usually consists of twisted tufts which are often heat-treated to maintain their...
weaving
Weaving
Weaving is a method of fabric production in which two distinct sets of yarns or threads are interlaced at right angles to form a fabric or cloth. The other methods are knitting, lace making and felting. The longitudinal threads are called the warp and the lateral threads are the weft or filling...
. Headquartered in Jaipur, they have their operations encompassing a rich 40,000 independent weaver base spanning 10 states across India.
Founder
N. K. ChaudharyNand Kishore Chaudhary
Nand Kishore Chaudhary is an Indian social entrepreneur. He currently serves as the Chairman and Managing Director of the social enterprise Jaipur Rugs, which he founded in 1978.-Early life:...
is the Founder-Chairman & Managing Director of Jaipur Rugs. He founded the company in 1978 with just two loom
Loom
A loom is a device used to weave cloth. The basic purpose of any loom is to hold the warp threads under tension to facilitate the interweaving of the weft threads...
s and nine artisan
Artisan
An artisan is a skilled manual worker who makes items that may be functional or strictly decorative, including furniture, clothing, jewellery, household items, and tools...
s. With his vision and under his leadership, Jaipur Rugs has evolved as a successful leader in the carpet industry. He has been awarded the Ernst & Young Entrepreneur of the Year Winners – 2010 for the best Start-up.
Unique Social Business Model
Jaipur Rugs began with two looms in 1978. Traditionally carpet-weaving was an exploitativeExploitation
This article discusses the term exploitation in the meaning of using something in an unjust or cruel manner.- As unjust benefit :In political economy, economics, and sociology, exploitation involves a persistent social relationship in which certain persons are being mistreated or unfairly used for...
industry where the carpet-weaving used to take place through contractors. These contractors in turn get the weavers weave the carpets in return for measly wages for highly-skilled labour. Jaipur Rugs did away with the middlemen by establishing direct link between the weavers and the company. The Jaipur Rugs business model has connected rural poor with markets of the rich, through the development of a global supply chain, built around mobilizing human capability and skills at the grassroots level and finding steady jobs for rural men and women in the most depressed parts of India.
Accreditions
C. K. PrahaladC. K. Prahalad
Coimbatore Krishnarao Prahalad was the Paul and Ruth McCracken Distinguished University Professor of Corporate Strategy at the Stephen M...
included a case study of Jaipur Rugs in his book The Fortune at the Bottom of the Pyramid
The Fortune at the Bottom of the Pyramid
The Fortune at the Bottom of the Pyramid is a book by C. K. Prahalad that discusses new business models targeted at providing goods and services to the poorest people in the world. It makes a case for the fastest growing new markets and entrepreneurial opportunities being found among the billions...
citing it as an example of a social business
Social business
Social business, as the term is commonly used, was first defined by Nobel Peace Prize laureate Prof. Muhammad Yunus and is described in his books Creating a world without poverty—Social Business and the future of capitalism and Building Social Business—The new kind of capitalism that serves...
which helps in tackling world poverty. The Jaipur Rugs Case Study is acclaimed to be the best success story at the Bottom of the Pyramid.
External links
- Times of India Article on Ernst & Young Award
- C.K.Prahalad Case study
- C.K.Prahalad Case study on Jaipur Rugs
- http://techcrunch.com/2010/03/06/replicators-innovators-and-bill-gates/Vivek WadhwaVivek WadhwaVivek Wadhwa is an Indian-American technology entrepreneur and academic.He studied IT at the University of Canberra in Australia, and later obtained an MBA from New York University's Stern School of Business...
's article "Replicators, Innovators and Bill Gates"] - Business Week article "My Magic Carpet Ride In India"