With its Mission to “Service the Community,” Jaipur Rugs Company (Jaipur) is one of the largest and most distinguished social enterprises in India. Headquartered in Jaipur, India, Jaipur was founded by N. K. Chaudhary in 1978 with only two looms. Jaipur uses a decentralized rug production system, centered on a network of over 10,000 low-income home-based weavers and wool spinners. Today, Jaipur’s operations span across 10 states in India, with rugs sold in 35 countries internationally.
Jaipur is made up of three entities:
1- Jaipur Rugs Company (JRC):
- Manufacturer and exporter of hand-knotted carpets and rugs
- Provides special loans to artisans so they can purchase looms that are placed both in individual homes and in community based production centers
- Provides necessary equipment and technical assistance to ensure the quality of each rug created
2- Jaipur Rugs Foundation (JRF):
- The non-profit that provides training, education and health benefits to Jaipur’s network of low-income artisans and their families, of which 11,000 work directly with JRC
3- Jaipur Rugs Incorporated (JRI):
- The wholesale unit in the USA, Jaipur’s largest market
Before making a capital investment, GBF’s initial involvement with Jaipur began in 2009 with BAS programs to support Jaipur’s expansion in the USA. After three years of BAS projects leading to the successful opening of Jaipur Rugs Inc. (JRI, the USA branch), GBF committed an investment to help Jaipur improve its working capital and enable capital expenditures for increased production capacity.
GBF BAS & JAIPUR:
GBF’s BAS program has focused primarily on environmental and social impact assessment and policy development. Additionally, GBF has worked closely with Jaipur Rugs to improve financial management and to set up an group of advisors to help the family-run company with strategic planning:Financial Management: Cash planning & budgeting; Accounting Controls; Improved cash conversion applications
Operations: Refined Jaipur’s MIS and Accounting systems for accurate reporting and decision-making; Implemented an Enterprise Resource Planning to connect 350 workstations all over India and the USA; Improved Inventory management
Strategy: Conducted extensive market research to transition Jaipur from the expansive rug market to the affordable market segment
Environmental & Social (E&S): Enhanced data-collection and analysis of E&S assessment; Revised and reinforced a company-wide anti-child labour policy
Governance: Created an advisory board and hosted periodic meetings
Jaipur offers year-round, output based employment for thousands of rural Indians—including women—in areas where much of the available work is usually seasonal. Connecting weavers to the international market, Jaipur establishes the infrastructure to help artisans develop and capitalize on their skills.
- Jaipur creates economic opportunities/employment for more than 25,000 low-income individuals, of which it ensures year-round work and income for over 10,000 weavers and wool spinners in the company’s network
- Women constitute nearly 60% of Jaipur’s total workforce
- Jaipur helps aspiring entrepreneurs by linking weavers to banks, so they can obtain insurance and access other financial/savings schemes
- Jaipur generates over $7.7M in income for beneficiaries annually
- The Government of India’s Ministry of Rural Development picked Jaipur Rugs Foundation (JRF) to train 4,000 rural youth living below poverty line (BPL) into skilled artisans in carpet weaving; the project is being implemented in Uttar Pradesh and Gujarat – view video.
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