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Case Code: LDEN133
Case Length: 15 Pages 
Period: 1978 - 2017   
Pub Date: 2018
Teaching Note: Available
Price: Rs.400
Organization : Jaipur Rugs
Industry : Carpet weaving industry
Countries : India; Global
Themes: Social Entrepreneurship
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

Jaipur Rugs – Empowering Communities at the Bottom of the Pyramid through Social Innovation

This case won the First Prize in the 2018 oikos Case Writing Competition (Social Entrepreneurship track), organized by oikos International, Switzerland.
 
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EXCERPTS

EXPANSION

 

Given the low income, insecurity, and lack of dignity that characterized the carpet weaving industry, there was increasing geographical and occupational migration among the weavers. Jaipur Rugs found it difficult to engage these communities in the carpet value chain. Further, there was also large scale seasonal migration when the weavers left the job of carpet weaving for other more lucrative work. However, through its fair wage system and social development programs, Jaipur Rugs gradually earned the trust of its artisans. By 2000, its business touched more than 10000 lives a day along with rapidly increasing the artisan network...

 
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SOCIO-ECOMONIC BUSINESS MODEL OF JAIPUR RUGS

As a social innovator, NKC took big initiatives; he mobilized the poverty-struck deprived communities and trained them to weave carpets. Jaipur Rugs became a platform to nurture the creative capacity of artisans and to empower them to fulfill their aspirations. Funds from the government helped in the installation of looms in Gujarat, providing employment to many poor people. Jaipur Rugs changed the traditional model of middleman-owned looms in the Indian carpet industry and enabled the weavers to own their own looms. It brought about a transformation not only in the lives of the artisans but also in the lives of people around them, opined observers...
 

ENTERPRISE DEVELOPMENT

At Jaipur Rugs, unskilled and poor people in the rural areas were transformed into rug artisans through community mobilization and skills training. Jaipur Rugs empowered all the women of a house by providing them access to a sustainable livelihood at their doorstep. ..
 

SOCIAL DEVELOPMENT

Jaipur Rugs aimed to provide functional literacy to its artisans and community members through the Alternative Education Program (AEP). AEP was started in partnership with the buyers and supporters of Jaipur Rugs – Jenny Jones Rugs and Peter Larsen. Under this program, classes were conducted for 2 hours every day for 6 months at several centers located within the village. Most of the teachers were the educated women of the locality who had been trained beforehand. ..

JAIPUR RUGS’S SUSTAINABLE DEVELOPMENT GOALS

In 2012, Jaipur Rugs gained membership in the Business Call to Action (BCtA) – a platform that recognized and supported businesses that combined profitability with impact. The idea was to encourage businesses to contribute to the United Nations Millennium Development Goals by 2015. Jaipur Rugs, which was the 42nd member of BCtA, was committed to training 10,000 low-income people from rural areas in different states of India on advanced rug weaving techniques by 2015...

RESULTS

As a result of its initiatives and programs, artisans working with Jaipur Rugs experienced a positive change in their lives. According to the company’s annual report 2016-2017, Jaipur Rugs successfully impacted more than 129,200 lives with about 27,200 rural women being empowered. It successfully created 6000+ jobs...
 

CHALLENGES

As a result of its initiatives and programs, artisans working with Jaipur Rugs experienced a positive change in their lives. According to the company’s annual report 2016-2017, Jaipur Rugs successfully impacted more than 129,200 lives with about 27,200 rural women being empowered. It successfully created 6000+ jobs...
 

THE ROAD AHEAD

In 2016, Jaipur Rugs renewed its BCtA commitment, and pledged to provide sustainable livelihood opportunities to 9,000 marginalized women while leading some grassroots leadership programs targeting 15,000 artisans in India’s carpet value chain by 2022. It remained to be seen whether Jaipur Rugs would succeed in retaining and attracting artisans and employees to work for it in the long run and whether it would meet its social commitments without diluting the company’s value system...
 

EXHIBITS

Exhibit I: Jaipur Rugs Supply Chain
Exhibit II: Interconnected Entities of Jaipur Rugs
Exhibit III:Geographical Presence of Jaipur Rugs
Exhibit IV: Country-wise Exports of Handmade Carpets & Other Floor Coverings from India
Exhibit V: Jaipur Rugs- Doorstep Entrepreneurship
Exhibit VI: Adoption Values of Jaipur Rugs
Exhibit VII: Jaipur Rugs -Health Camp Beneficiaries (2015-16)
Exhibit VIII: Short-Term and Long-Term Impact of Jaipur Rugs
Exhibit IX: Impact Created by Jaipur Rugs
Exhibit X: Award
Exhibit XI: Jaipur Rugs Foundation