[vc_row][vc_column][/vc_column][/vc_row][vc_row][vc_column width=”1/4″][vc_separator color=”sky”]Part 1: INTRODUCTION[vc_separator color=”sky”]Part 2: METHODOLOGY[vc_separator color=”sky”]Part 3: FMCG[vc_separator color=”sky”]Part 4: HEALTH[vc_separator color=”sky”]Part 5: FINANCE[vc_separator color=”sky”]Part 6: TEXTILE[vc_separator color=”sky”]Part 7: HOUSING[vc_separator color=”sky”]Part 8: TELECOMMUNICATIONS[vc_separator color=”sky”]Part 9: DIVERSIFIED MANUFACTURING[vc_separator color=”sky”][/vc_column][vc_column width=”3/4″][vc_single_image image=”2200″ img_size=”medium”][vc_column_text css=”.vc_custom_1455704047925{padding-right: 10px !important;padding-left: 20px !important;}”]
Part 6: Textile
The list of enterprises include Fabindia and Jaipur Rugs.
Fabindia
Fabindia is a retail venture based on traditional handicrafts products. It is the largest private platform of products made from traditional techniques. Majority of its product are sourced from rural villages in India. It links nearly 55,000 craft based rural producer to modern urban market.
The business model has helped in maintaining long term relationship with the farmers and has provided the rural people a source of income. Apart from employing the rural farmers, the company also organizes them in their functioning. Fabindia works closely with artisans by providing various inputs including design, quality control, access to raw materials and production coordination.
Working with and for the artisans has helped the company stay strong in the times of global financial turbulences. The business model has preserved the nation’s traditional handicrafts in it process of achieving efficiency by innovating their supply chain. The business model rest on the premise of creating and maintaining sustainable relationship with its suppliers. They have built social credibility to drive social commitment to their business. Adopting a business model that creates societal value by engaging deeply with the communities have benefited the companies in sustaining long term growth. In order to achieve sustainable long term growth Fabindia included suppliers in their supply chains as they were critical to their growth. Fabindia has diversified its product portfolio and included non-textiles items and organic foods. The company keeps its network of suppliers up to date with current market trends.
The company focuses on sustainable livelihood and provides them with viable retail platforms for crafts largely produced by artisans in rural areas. The company’s supply chain is built around Community Owned Companies (COCs) that is facilitated by the unique micro-credit mechanism – Artisans Micro Finance Private Limited (AMFPL), Fabindia’s wholly owned subsidiary. COCs serve as an aggregation points that are structured in a manner enabling artisans to participate as suppliers and shareholders. It has created a far more positive impact than the traditional business models used by retailers.
The company merges indigenous craft techniques with contemporary designs to bring aesthetic and affordable products to its consumers. The iconic brand does little advertising but has established a clear identity in the minds of its customers. The products reflects the intrinsic value and an international resonance while being rooted in traditional knowledge, technique and skills. Its authentic products bridges the distance between Bharat & India forming a strong connect between urban consumer and rural producer. In the year 2012, the company was earning a net margin of 8% nearly three times than the industry average.
Fabindia’s community owned model brings to fore that businesses can achieve success by addressing the social issues that intersects with their business.
Jaipur Rugs
Jaipur Rugs is a handmade carpet manufacturer of India that reaches out to 40,000 artisans. It manufactures handmade area rugs including the hand-knotted, hand-tufted and flat woven styles rugs. The business was founded in 1978 with only nine artists, and it has evolved ever since employing more than 40,000 people belonging to weaker sections of the society.
India is a home to 2.5 million artisans weaving rugs and most are not well-paid. Unfair pricing practice of the contractors purchasing carpets at the village level in the recent years has plunged the wages of the artists. Rug weaving can play a significant role in poverty alleviation and skill development of uneducated rural populace living in remote locations. It will mitigate migration of rural people for search of income and provide output based wages.
The company has created a sustainable source of livelihood by providing them employment. Women, unskilled rural people and low-income labourers in villages are trained to be fine artisans for Jaipur Rugs. The different business practices adopted by Jaipur Rugs have led to socio economic development of the unemployed rural weavers and artisans. The business model brings out, how a company can grow by addressing human needs and understanding the communities surrounding its business. The company delivers value products to customers while improving the standard of living of the artisans. Inclusive development is a result of the company’s business model that portrays the ideal role of business in the society.
Jaipur Rugs opens up a new perspective on building a global supply chain that benefits the BoP producer. The company has built a world-class supply chain for the poor in India as the providers of the sophisticated capability to weave beautiful rugs that get exported to around 40 countries. The company also provides training on advanced carpet weaving techniques that provide them access to innovative weaving techniques. The business model that supports the growth of the underserved communities in rural India has helped developed skills and weaving capabilities of thousands of unemployed rural people. The non-exploitive business model provides fair wages to artisans by setting up its own offices in its areas of production and establishing direct linkages with the artisans. There is no role of intermediaries and artisans enjoy enhances earnings through supply chain linkage,
The business model of Jaipur Rugs has addressed a critical need of providing sustainable livelihood by employing jobless people with some meaningful work. Jaipur Rugs has supported livelihoods of rural craftsman by providing them with a stable source of income and has been able to maintain grassroots linkages. The economic achievement of the company has been spearheaded with the socio-economic development of the community.
Jaipur Rugs presents a classic example of a business model that links the grassroots to the luxurious.
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