Successful collaboration leads to thriving Business Ecosystem in India 

For more than 20 years, Jodhpur Handicrafts Exporters Association has nurtured a network of (prospective) exporters. Their focus is on facilitating technical advice and consultancy for the sustainable development of their members’ businesses at domestic and global level. PUM experts Wim Westerbos and Peter Koolen collaborated with the association on location in capacitating their members with respect to marketing, sales, export, and financial management.

In 2021 KPMG India undertook a Diagnostic Study Report, by initiative of Small Industries Development Bank of India (SIDBI), with a thorough analyses on the Jodhpur Furniture Industry, consisting of about 4.000 micro, small and medium-sized enterprises. The large furniture exporters (about 50) are controlling the market and heading the small manufacturers. To develop these small and medium-sized producers of furniture to higher business levels an extensive programme has been developed focussing on international trade linkages. 

Many of these companies are organised in the Jodhpur Handicrafts Export Association (JHEA). Thanks to PUM’s representative Mr. Jain, who made the initial contact, PUM’s sector coordinator Marike Wegter and Hilke Tol were introduced to the partners Sidbi, KPMG and JHEA and set up the outlines of the cooperation and the future programme. 

Business support and training on  location

Together they formulated a clear objective: to empower members with enhanced knowledge and insights for sustainable business growth. The primary focus is to delve into the core values of the companies and develop strategies toward achieving sustainable growth. Moreover, the aim is to provide guidance across various facets of business management like general management, sales, and marketing. Specific topics such as positioning, branding, and the formulation of comprehensive marketing and sales plans will be thoroughly explored and discussed. 

Optimising the business

Early 2023 PUM experts Peter Koolen and Wim Westerbos were approached by PUM, to give business training (on-line), training on location and to visit individual companies to help them in expanding and optimising their business. They have been giving group training sessions and made individual company visits where they had face-to-face discussions. This resulted in individual company recommendations and agreements on how to proceed further. Multiple discussions were undertaken and strategies put in place to assist units gain experience in the international furniture industry with a thorough preparation for a visit to Germany, to the well-known International Furniture and Interiors fair (IMM).  

Promising results

Subsequently, ten companies of JHEA participated in the IMM fair in Cologne where they had a collective stand. Their participation in this fair was very successful. Over 500 enquiries were made by visitors and various large orders came through. Peter Koolen: “The first results are very promising and we strongly recommended to participate in this fair for at least for the two coming years in succession to build up visibility, consistency, recognition and experience.” After the fair the group also visited the Netherlands to connect with various Dutch furniture companies like retail furniture stores, importers and manufacturers. They also visited the Design Academy KABK where they learned that presentation and design are crucial elements to attract the customers.   

Satyaki Rastogi, Chief General Manager from SIDBI adds: “When SIDBI adopted “Jodhpur Wooden Furniture Cluster” under its Cluster Intervention Programme in 2021, an overdependency on some handful exporters was recognized as a deterrent to growth of Micro Units in the cluster. The micro units in the cluster are primarily catering to the demand of the larger exporters without pursuing direct exports. To mitigate this challenge, SIDBI collaborated with PUM with an aim to empower the MSME units to undertake direct exports. The systematically curated interventions involved training and capacitating of 10 sample micro units from the cluster through focused strategy and one-to-one diagnostic session. Over a span of 1.5 years.  SIDBI facilitated the visit of experts from PUM to the cluster who undertook various exercises and methodologies to strengthen these units and make them ready for exports through a specially curated business strategy. 

Future cooperation Sidbi, KPMG and PUM

Based on the success of this first business ecosystem in the furniture branche, PUM, KPMG and other partners together with SIDBI will investigate further opportunities for cooperation. With this approach, PUM is looking forward achieving greater impact by providing optimal support to these ambitious clients.