In 1975, a few years after stepping down from IIMA's directorship, Matthai decided to test whether corporate management disciplines could be related to gut issues of Indian poverty. He selected Jawaja block which included about 200 villages with a population of approximately 80,000 people in a drought prone district of
Rajasthan. The area was then regarded by the government authorities as devoid of any scope for development. Believing that people were the greatest resource for development, Matthai began to work with village communities on issues of livelihood and empowerment in an environment that was (and still remains) among India's most degraded and oppressive. Volunteers from IIMA and the
National Institute of Design (NID) joined with local citizens in the search for livelihood options that could be sustained in the face of social, environmental and political challenges. Among them was Raaj Sah, subsequently Professor at the
University of Chicago, who worked on the project during and after his MBA studies at IIMA. Among his contributions were that Ravi Matthai and he together were the first on the ground and, starting from nothing, they began structuring and implementing the work of poverty alleviation. Languishing skills in weaving and leather work were selected in an effort to develop new opportunities for earning that could be outside the control of local vested interests while remaining rooted in familiar and tested capacities. The Jawaja Experiment thus began with Prof. Ravi Matthai leading a small group of volunteers to what seemed a barren patch of land with little resources and even less hope. Forty years later, the Jawaja Leather Association and the Jawaja Weaver's Association, linked as AAJ, continue their struggle for self-reliance and dignity. They have come a long way. The leather workers and weavers have won a degree of economic independence. Their products are reputed in India and in many parts of the world. This experiential learning of running a gross root development project, led to the setting up of the
Institute of Rural Management, Anand. Ravi Mathai, and two of his former IIMA colleagues, Kamala Chowdhary and Michael Halse are credited with conceptualising the need for an independent Institute of Rural Management. The institute was established in Anand, at the express invitation of
Verghese Kurien, his cousin, then Chairman of the
National Dairy Development Board. Ravi Mathai was associated in the initial years in various capacities - being a member on the Board, directly in teaching students, apart from informally mentoring the faculty. ==Honors==