INDUSTRY VISIT

COMPANY PROFILE
Name: Jaipur Rugs Pvt. Ltd.
Chairman & MD: Mr. Nand Kishore Chaudhary
Year of establishment: 1999
Head Office: Sahpura, Jaipur
Branches: 25
Location of factory and godowns : 350
workstations with 7500 looms spread across 9
states with a central godown at Jaipur
Nature of business : Manufacturer and
exporter of the finest varieties of handmade rugs
and carpets
PRODUCTS OF THE
COMPANY :
Hand knotted wool
Hand knotted silk
Hand tufted rug
Natural fiber rug
Tibetan rug
Shags
Durries
Sumak
Handloom
Flat weave rug
Hand woven rug
Customized rug
PLANT CAPACITY AND
TECHNOLOGY
Ø40000 weavers at 7500 looms across 9
states.
Øaverage capacity per weaver is 0 . 75 - 1 . 00
square yards per weaver per day
Øcombination of human and electronic
networks and logistics infrastructure
ØCentral Control Room acts as an
interface between the Production and
Design departments
ØERP Navision Software (Enterprise
Resource Planning)
Øwell-designed communication networks
Determination of price range and time
Price ranges from $3-$40 per square feet on the basis
of:
ØMaterial- Pure Silk costs highest, then the percentage
of silk, cotton and wool used in the product determines
the price
ØNumber of knots per inch
ØColour combinations and type- More than 500 colours
are used.
ØLead time
ØCustomization of the product
ØDesigning

Time taken:15 days to 1 year

ØType of material used
ØSize of the rug,
ØDesigning
ØCustomization of the product .
 PROCUREMENT OF RAW
MATERIALS:
The company procures three types of
material for its finished product
Wool- Bhoomika Wool at Bikaner
Silk- Imported from China
Cotton- From Jaipur
Determination of Quality and Quantity of Raw
Material
ØEnsuring quality wool after spinning and dyeing
üQuality of hand spun yarn is inspected at the Bhoomika Wools
branch office
üAfter dyeing, the dyed yarn is checked at the Jaipur Rugs
headquarters in the map section of the design department.
üThe rejection rate in dyeing lies between 7-10%.

Ø
ØAchieving International Quality Standards
Jaipur Rugs received ISO 9001:2000 certification as a way to help
standardize the documentation of company processes
 Raw material procured (Kg) for
2007-08

Company Raw material Raw wool Silk Indian Silk imported

INDIAN imported

JRC 0 347,383 2143 40,415

Bhoomica 746,569 195,307 0 0

 STRUCTURE OF PROCUREMENT PROCESS
FOR WOOL

YARN SPINEERS
 
 
INDIVIDUAL SPINNER

AUCTION AGENTS/FIELD STAFF

SH
EP
HE
RD
S CONTRACTORS

BHOOMIKA WOOLS,BIKANER

CARDING SERVICE PROVIDERS

 EXPENDITURE IN MANUFACTURING ( MONTHLY )

Production Activity No. Of workers Average Monthly

Income (in Rs.)
Initial Sorting of Raw Wool 50-60 1050
Raw Wool Washing 15-20 2500-3000
Carding-Machine 60 3000-4000
Carding- Hand Include in hand- 1100-1300
spinning
Spinning-machine 50-60 2500-3000
Spinning-hand 10,000-12,000 1100-1300
Yarn Washing Included in Raw 2500-3000
Wool Washing

Dying 35 3000-20000
Opening 200 1800
Weaving 28,000 1300-3000
Finishing 500 3000-3500
Transportation 40-50 1155-8000
 Logistics and supply chain:
YARD SPINNERS DYEING
SPOOLING
FINISHING

JAIPUR RUGS,USA
SPOOLING
WORKERS

CONTRACTOR
BUYERS/RETAILERS
CONTRACTORS
JAIPUR RUGS HQ, JAIPUR END CONSUMERS
BHOOMIKA WOOLS, BIKANER

SH AUCTI
EP ON BRANCH OFFICES
HE AGENT
RD S
S
CONTRACTORS

CARDING SERVICE PROVIDERS

WEAVERS
DESCRIPTION OF PRODUCT COST/SQUARE COST/SQUARE CAPACITY/TIME
FT(RS) FT(USD)

Customer places an order with JR

JRI communicates to JRC

JRC forecasts and acquires raw material
including wool in Bikaner or imported from Rs 22.71 $ 0.49 15 days
other countries

JRC completes preproduction Rs 33.09 $ 0.72 30 days

logistics(cleaned, prepared and wool delivered
to the weaver with a rug map)

weaving Rs 100.5 $ 2.18 32 days(@ 2 sq

ft/day)

Post production logistics Rs 26.62 $ 0.58 3 days

Total JRC cost Rs 182.47 $3.98

*Shipping cost(paid by customer) $0.25 45 days

JRI wholesale price charged to customer $ 5.00

Final retail price charged to end customer $ 12.50

SUPERVISION AND CONTROL :
Quality control in the weaving and
finishing processes
ØThe area commanders help correct and
retrain the weavers.
ØInspectors in the carpet receiving area
check for various defects.
ØTo ensure the quality of rugs through the
finishing process, two Jaipur Rugs employees
go to the finishing centers every day
ØWhen necessary, finishing centre
representatives are called into the Jaipur
Rugs HQ to discuss quality issues with
Jaipur Rugs management.
THANK YOU