The term businesses may intuitively invite the mental image of a profit-oriented entity with the sole aim of selling products and services. Sure, this is the ideal meaning of the term but still there are many entrepreneurs who have made their businesses a vehicle of change. They use it for social upliftment of lower communities, effacing the social stigmas and revolutionizing the century old notions. Today, we are going to discuss about one such business. Based in Jaipur, the Jaipur rugs
is an enterprise that has successfully converted their main product- Jaipur rugs and carpets, into an emblem of social change. Let’s see how the company is empowering the society and bringing positive change through their enterprise:
The Flashback
When a friend told Nand Kishore- lovingly called BhaiSaheb (Big brother), a fresh graduate then, about the possible opportunities in the carpet industry, a newly rising sector in the mid-seventies, his entrepreneurial spirit compelled him to explore this new avenue. His small family business- a shoe shop was recently shuttered down after a spell of losses and yet NandKishore had turned down a banking job offer. Though the path wasn’t easy, the young entrepreneur wasn’t ready to compromise with his grand vision for immediate gains.
Business Loan and initial challenges
Taking a loan of 5000 from his father, Nandkishore set out on his entrepreneurial journey in the carpet industry. Economics wasn’t the only tough part to manage. The conservative Marwari relatives of NandKishore were against him working with the carpet artisans who hail from the Regar community considered untouchables. It was almost a social boycott for them and relatives stopped inviting Nandkishore and his father to social functions.
Taking middlemen out of the equation
The show, as they say, went on! Determined and undeterred NandKishore continued his voyage and was eventually rewarded with some success. The factory was shifted briefly to Gujarat in 1990- a decision by NandKishore. The reason was the higher skilled labor community in that area. It took the middlemen out of the equation which significantly reduced the costs and increased the net profit while allowing the artisans to command the full price of their labor without sharing with intermediaries.
Happy workers work harder
Carpet making requires meticulous skills, efforts, and patience with a few types of carpets taking up to 12 months in order to complete. In such jobs, income-hike means a lot. The direct employer-artisan connection without intermediaries brought prosperity to artisan’s families, peace in their hearts, and smiles on their faces.
Encouraged, the artisans started working more dedicatedly which resulted in better outcomes, and unmatched aesthetic qualities. As the “task” evolved into “art”, the artisans started enjoying their work.
Like father, like son
A significant incident in 2006 may be called a blessing in disguise that formed the backstage for the present success of the company. Nandkishore’s son Yogesh, a student of Boston College, had come to Jaipur for spending some days together with his family, go back, and continue his studies. However, the story again twisted with a robbery incident at the company and the loss it resulted in. .
Some of the top management personnel also left the organization. The business suffered and Yogesh had to decide between leaving their studies. But it also presented him with an opportunity to become a full-time entrepreneur at the company so painstakingly established by his father!
The history repeats itself
Years back, it was an arduous journey for the father; years later the sailing wasn’t smooth for the son, either. In 2008-09 when the company was still growing steadily an enormous loss of 20 crores attacked, as if, at its core. However, along with the business, Yogesh also inherited the entrepreneurship, determination, and resourcefulness of his father.
Failures failed to affect his enthusiasm. He persevered and patiently worked his way past challenges gradually “rebuilding” the things and silently working on his long-term plans. Keen observing, father’s advice and interaction with stakeholders helped him learn the ins and outs of the business.
His studies, exposure to different cultures in Boston College, and the thought process sharpened by scholastic discussions, possibly have directly/indirectly enriched his innate business acumen and logic. Several of his wise decisions paid off well.
Exploring higher altitudes of success
His natural affinity with technology also allowed the company to onboard digital commerce space and wisely progress its way up. The company experienced a significant boost in the growth curve.
Figures that inspire
What started as a single man’s dream with just 2 looms has now evolved into a flourishing enterprise. Does it consist of a 40,000-strong community of weavers from 600+ Indian villages? What remained unchanged though are the ethics and core ideologies of the company. It not only pays the right remuneration to the worker’s family but also rewards their art. It highlights their unique stories, and organizes ceremonies to celebrate their success.
Using technology to streamline the processes
Tana-Bana is an app by the company that was came in 2018, keeping pace with the technology.
The app leverages digital power to help the company monitor the entire groundwork to ensure that things go smoothly without any issues. Small hiccups may not be ruled out but instant alerts from this app allow management to sort out issues then and there before they affect the business operations. Along with weavers’ activities, the app also informs about the raw material inventory and then three of the work. The app has not only added efficiency but has also minimized the physical intervention to solve grassroots matters.
The business
Along with Jaipur rugs, the enterprise also sells through its stores in Bombay and Delhi.
However, a major chunk of revenue comes from the company’s export business as its products have a loyal buyer community in international markets like Germany, Brazil, UAE, Japan, and the US.
The company’s exports have been the strongest revenue generator and now the company wants to concentrate on retail as well.
