MICROFINANCE PROGRAM

Narankhuu is a member of the “Orgil” cooperative group in Uliastai soum, and he creates felt products using ecological, raw materials like wool and cotton. Since his business started, local customers have been and continue to be satisfied with the high quality products he produces so that his felt products are in high demand; earning him a good reputation. He takes great care through every stage of the production process. The first process usually takes two to three days and this involves classifying and sorting the wool by hand. This plays a vital role in creating the best quality products. Additionally, he covers the felt products with plastic, once they are ready to sell. These kinds of practices and work ethics strengthen his competitive ability over other competitors.

Business experience

Before becoming a felt producer, Narankhuu was a herder in the countryside. Wool is very cheap and availability is high in the countryside. Some examples of the small carpets Narankhuu makes and this provided him with a great opportunity to start running his business. He attended training for small and middle scale businesses which was run by the Micro Economic Development sector of ADRA Mongolia supported by ADRA New Zealand, ADRA Australia, ADRA Switzerland, and ADRA International. He learned how to trade his products to potential markets successfully.

Product types

Generally, Narankhuu produces items such as felt slippers, carpets, and rugs made of camels wool. The beautiful ornamental patterns and colorful materials are eyecatching, and attract customers’ to his products.

Producing period

Once the wool, as the main raw material, is ready he is able to produce around 2 pairs of slippers in a day. Other carpets and rugs take different amounts of time depending on their size. He usually produces four 50*50cm carpets, and two bigger carpets per week.

Raw materials

The main materials which Narankhuu uses to create his products include: wool, camels wool, cotton, soap, plastic and plastic bags. He obtains wool, as the main raw material, from his livestock.

Pricing

Felt slippers for adults cost around 8,000-10,000 MNT [ $5.70- $7.15], and for children the cost is around 5,000-7,000 MNT[ $3.55- $5.00]. Carpet costs depend on the size, 50*50cm carpets cost around 50,000 MNT [ $35.70] on average.