Jaipur Rugs Logistics Planning

India's largest manufacturer and exporter of hand knotted rugs

Produces an exclusive product range of rugs, pillows and poufs

Carry forward the rich heritage of India to more than 40 countries in the world

Has a network of around 40,000 skilled artisans in rural India

Jaipur Rugs Company Private Ltd.

JR Foundatio

n

JR Incorporate

d

JR Compan

y

Bhoomika Wools

Entities

Headquarter

Carding &

Spinning

Weaving & Finishing

Dyeing & Opening

Production Process Logistics

Bikaner

Jaipur

22 branch offices spread across 7 states

Shipping & Export Documentation Dept.

1 •Customer (large retailer) placed order with JRI

2 •JRI communicated order to JRC.

3 •JRC forecasted and acquired raw materials •Includes wool bought in Bikaner or imported from another country by Bhoomika Wools

Description of Process

4 •JRC completed pre-production logistics •Cleaned, prepared and delivered wool to rug map

5 •Weaving process

6 •Post production logistics•Finished carpet returned to JRC and packed for shipment

7 •Total JRC cost amounts to say ‘X’ $

8 •JRC wholesale price charged to JRI

9 •Shipping cost (Cost/ Sq.Ft= 0.25 $)•Paid by customer

*** Shipping cost is assumed to be through vessel and includes all customs, fees, duties, and final transportation to customer.*** Shipments by air cost $ 1.5/ sq.ft. and are only for back-ordered products (approximately 15% of all shipments).*** JRI pays for the shipment in this case.

10 •JRI wholesale price•Charged by JRI to customer

11 •Final retail price•Charged by customer to end consumer

!!!

Production units are in Rajasthan, Gujarat, Uttar Pradesh, Bihar and Madhya Pradesh; with two new states i.e. Maharashtra and Jharkhand being added up

Annual production of approximately 5 thousand million square feet of Rugs

Provide training and giving fair wages with no exploitation

Connecting artisans to global Market

Manufacturing network

Artisans are Familiar with traditional skills of carpet weaving

Traditional tools, looms and technology is easily available Most of the artisans are from the same caste and status Products are made by the poorest among the poor (ST/SC/

BPL) which helps in creating the brand image Artisans here are mostly mastered the art as they get it

from their ancestors who were in the same business. In addition to this, Grant Support to Jaipur Rugs

Foundation is eligible for tax exemption under Section 35AC and Section 80 G of India's Income Tax Act.

Rationale behind selecting manufacturing locations

At present Jaipur rugs has businesses in more than 30 countries and touched a turnover of over 14 million $ in 2008-09.

USA is the major market of rugs where about 65% of the sales are done.

Followed by Turkey, Canada, Mexico, Italy, Germany, Australia, Russia, Spain, Romania etc.

Distribution Network

Jaipur Rugs Supply Chain Network

Jaipur Rugs distribution network

Transit Time calculation using APL Logistics

Gujarat-based private ports are closer to the industrial regions of Rajasthan and Haryana

In FY12, JNPT operated at nearly 120% of its capacity, whereas Mundra operated at around 60 to 70% of their capacity

Kandla(Port in Gujarat), India’s largest port by volumes, a 30% hike in vessel-related charges is driving traffic elsewhere

The Adani Group, which employs more than 5,000 people in the Kutch district, expects to expand the port’s(Mundra) capacity to 200 million tonnes of cargo per year by 2020 from the current 78 million tonnes

Rationale behind selecting Mundra Port

External Connectivity Mundra SEZ has seamless connectivity through

National Highway (NH 8A Ext.) & State Highway (6 & 48) from Northern and Western parts of India

Internal Connectivity 150 km of arterial and sub-arterial road network

planned within the SEZ of which 70 km already completed

Roads designed as per IRC Standards Codes and Safety Norms

Connectivity Advantage: Road

It’s a network of warehouses, proximity to Atlanta and south eastern consumers, rail and interstate access

It takes 5 hours(535 Km) from Charleston Port to reach to Jaipur rugs, Atlanta office, whereas from savannah it takes only 4 hours(425 Km)

Rationale behind selecting Savannah Port

Source Destination Mode of transport Distance (KM) Time

Jaipur Rugs HQ, Rajasthan

Jaipur ICD (Kanakpura) Road 10.2 1 Hours

Jaipur ICD JNPT Road 1210 17 Hours

JNPT Damietta Sea

8744Nm 27 DaysDamietta New York Sea

New York Charleston port Sea

Charleston Port Jaipur Rugs, HQ, US Road 535 Km 5 Hours

Case 1: Complete Transit time

Complete Transit Time = 27 Days 23 Hours(Excluding Loading/unloading time or any other time lag)

Source Destination Mode of transport Distance (KM) Time

Jaipur Rugs HQ Jaipur ICD (Kanakpura) Road 10.2 1 Hours

Jaipur ICD Mundra Port Road 853 13 Hours 33 mins

Mundra Damietta Sea

- 24 DaysDamietta New York Sea

New York Savannah Sea

Savannah Jaipur Rugs, HQ, US Road 425 Km 4 Hours

Case 2: Complete Transit time

Complete Transit Time = 24 Days 18 hours 33 minutes(Excluding Loading/unloading time or any other time lag)

Thank You