Trade India Interview

Mr. Yogesh Chaudhary (Director - JRCPL)

Posted: Nov 28 2006

What is the story behind the establishment of Jaipur Rugs Company Pvt. Ltd. and what factors have led to its resounding growth over the years?

At Jaipur Rugs Company Pvt. Ltd., we always believe that "Everyone has the power to transform the world; the key is to search within and discover your power." This belief has helped our founder Mr. N.K. Chaudhary to give our company a standing in the market, by providing exceptional piece of work to our valued customers. Mr. N.K. Chaudhary's passion for the art of carpet making made him study this art more closely and minutely. While interacting with the weavers, he learned the intricacies of the manufacturing process and eventually became an expert of the hand-knotted rug weaving process. Stacked with the know-how of the trade, he set up two weaving looms in 1978 and employed local craftsmen. Initially, we fulfilled outsourcing needs of other companies, but as time passed and as our market exposure grew, we stepped into exports in 1999, which further took Jaipur Rugs Company Pvt. Ltd. to greater heights. Our growth over the years can be attributed to the fact that we have done comprehensive study of the market, which has given us the command and the experience for providing our customers the best of the products. We are a customer oriented company, and our aim is to fulfill their needs and requirements as per their specifications. Our in-depth knowledge of the industry has provided us the concrete base. Our 25 years of hardcore experience right from the starting, assured us that the carpet business is just not a game of 'try and error' but a much planned out and thoroughly professional entrepreneurial venture. Our competent management has become the key behind our success story and the think tank we have assimilated over the years has helped us weave the business environment seamlessly.

What are your main geographic markets and what steps have you planned to consolidate your market share?

Our understanding of the carpet industry allows us to provide the best products to our customers worldwide. At present, we are majorly catering to USA, Australia, Canada, Spain, Greece, and Germany amongst other countries. We plan to consolidate our reach by developing products based upon customer feedback which will enable us to catch a larger share of the global carpet market.

"Service to the community" is your company's motto. How have you been able to tackle various social issues in order to discharge your company's corporate obligations?

Jaipur Rugs Company Pvt. Ltd. has long recognized the importance of issues related to corporate social responsibility (CSR), and has adopted range of measures to ensure that we tackle various social issues concerning our industry. In the year 2004, we introduced J.R.F. (Jaipur Rugs Foundation) for weaver's training and skill upgradation to make our products compatible with the international market and for Research & Development of the carpet industry (in terms of design, color, texture etc). Jaipur Rugs Foundation deals and works for the betterment of the carpet industry keeping the following aims in mind:

1. Directing the flow of benefits for the artisans behind the story. It is aimed at a socio-economic relation that tosses out the middlemen and makes the artisans free from exploitation and under payment.
2. Promotion of new designs as per the international demand so as to bring more work to the artisans which in turns accelerates income and prosperity.
3. Uplift the social status of the artisans by raising their standards of living through carpet weaving which in turn add to the economic growth of the industry.
4. Promotion of research for new technology to bring the weaving industry closer to the international market.
5. Welfare schemes through microfinance which help the artisans get motivated for becoming economically sound and able to hold assets like their own looms.
6. Spreading and nurturing the art of carpet weaving for those who are too poor to hold any agricultural holding but can do work for a living. With job satisfaction guaranteed, it would facilitate their sound economic living.
7. Refining and updating the skills of the artisans enabling them to generate more income based on the quality parameter.

We have also promoted the "Extended Family Concept". Each and every artisan who is associated with it is considered a family member and hence given equal importance like any other member of family. This provides the sense of dignity to the artisans which boosts their morale and thereby enhance their productivity skills, which in turn bring prosperity to their homes and of course our family

Carpet exports from India is on a downhill; what are the reasons of the same?>

India's carpet industry reels under tremendous pressure reducing its potential due to various reason, like:
1. No value generation is being done or taken care of.
2. Lack of innovation either due to ignorance or lack of awareness.
3. Distance from latest technology which not only increases the production cycles but takes away the quality benefits.
4. Quality not as per client's requirements which distracts the customer towards other players of other countries
5. Long production cycle which is often caused by incompetent production process and management
The implementation of certain steps like improvement of quality standards by adopting the latest technology, following quality control measures, researches, surveys to study the demand of the market, etc. would surely help in bringing the carpet industry to a uphill. The government, NGO's and the entrepreneurs themselves should come forward and work towards the progress of this industry.

Child labour is common issue with Carpet Industry in India & various Western buyers discard manufacturers producting goods using Child labour. What steps are taken by your industry to overcome this issue?

We are totally against child labour in any industry. At Jaipur Rugs Company, we have taken various steps to ensure that we avoid such instances. Following are some of the parameters that we strictly follow:
1. Our work contracts are based upon the primary condition of non involvement of child labor.
2. Jaipur Rugs Foundation, an organization we promote, also checks for any such cases and takes action upon them.
3. Providing training to the artisans so that they can enhance their skills and thus earn more money to restrain their kids from child labor.

4. Exploring new artisans so that even women can learn carpet weaving and share the work load with their male counterparts instead of involving kids.

We all know that the children of today are the citizens - the future of tomorrow. If we all collectively involve ourselves for their better upbringing with educational facilities, there won't be any room anywhere for child labour, and we can all dream of a better tomorrow.

Do you feel that if the Government increases its support then the success of the carpet sector is inevitable. Kindly comment.

Yes, it will help the industry roots and will support against foreign competency; but ultimately it is the product that speaks for itself therefore only Govt Support is not enough. The product should be of such quality that it steals the market. We should ensure not only superior quality products but also present the latest, trendy and exquisite designs exclusive enough to attract buyers.

Do you feel that exhibiting at Trade Fairs plays a significant role for opening new markets or reaching out to new buyers?

Yes, they offer very good exposure to new markets and customers which accelerates the growth of the industry. It enables the industry to know more about latest developments in terms of technology and material which results in better product in less time. In these trade fairs, one comes to know about the new trends in fashion which in turn help in satisfying the immediate needs of the customers.

In 2005 your entity was recognised and thereby conferred the title of "Star Export House" by DGFT. How did u feel?

Awards and accolades conferred to a company do boost the morale of all associated with it which further motivates them to deliver the best products and services. We were elated when we heard of the news and it was a welcome surprise to all of us. We were not only excited but were also aware of the extra responsibility which stars for us and more service to the community.

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