SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD

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 Case - Lijjat Papad- About the organization

 Owned by Shri Mahila Griha Udyog Lijjat Papad

 Based on the Gandhian concept of trusteeship or Sarvodaya

 In 1966, registered under Bombay Public Trust Act, 1950 &

Societies Registration Act, 1860.

 A Village Industry Unit under ‘Processing of cereals & pulses

industry’ group.

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3 LIJJAT MASCOT
Case - Lijjat Papad- About the organization

 Objective – Provide employment to the ladies to

enable them to earn a decent & dignified
livelihood

 Profits/ Losses are borne by all the 42,000 sister

members collectively.

 Total turnover – Rs. 315 crores, inclusive of Rs.

12 crores of Exports

 Competitors – MDH, Bikaner, Saktibhog

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Organizational Structure

 A Central Managing Committee

 Branches are headed by a Sanchalika

 Management Committee’s approval required for

starting a new project or activity.

 Divisions – Marketing, Advertising, Sales

Promotion & Exports.

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SMGULP – Management Committee

President : Smt. Jyotiben J. Naik

Vice President : Smt. Kamalben D. Dhandore

Secretaries: Smt. Sunandaben R. Belnekar

Smt. Gangavatiben H. Naik

Treasurers : Smt. Mansiben S. Sawant

Smt. Kshamaben M. Sutar

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Lijjat Philosophy

 Concept of Business.

 The concept of Family & Devotion

 Never accepts donation, charity, gift or grant from any

quarter.

 Donation for the affected families of Tsunami (25 lakhs

to CM Relief Fund), Earthquakes in Latur and Bhujpur
were provided from the contribution of sister members.

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Case - Lijjat Papad- About the organization
Awards & Accolades

 Best Village Industry 1998-99, 2000-01 & 2003

 ET Award of “Businesswomen of the Year”

2001-02 for Corporate Excellence

 Featured on BBC World in the programme

“Business Bizarre”

 A Six Sigma Company

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Product Range

Besides Lijjat Papad,

 Lijjat Bakery products, Lijjat Chapatis

 Lijjat Gehu Atta, Lijjat Khakra.

 Sasa Detergent powder and cake

 Grounded spices, Black Pepper Powder, Wadi

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 Variants for Lijjat Papad
ITEMS Small Size Mini Size Small Size Big Size Small/ Big Small/ Big Small/ Big
100 200 200 250 Size Size Size
gms gms gms gms 500 1kg. 2.5kg(
(Rs.) (Rs.) (Rs.) (Rs.) gms (Rs.) Rs.)
(Rs.)

UDAD with Pepper 10.00 18.00 18.00 23.00 42.00 82.00 198.00

UDAD with Garlic – 10.00 18.00 18.00 23.00 42.00 82.00 198.00
Chillies
UDAD with Red 10.00 18.00 18.00 23.00 42.00 82.00 198.00
Chillies
Moong (50% Udad 10.00 18.00 18.00 23.00 42.00 82.00 198.00
& 50% Moong)

UDAD Special 11.00 21.00 21.00 25.00 47.00 91.00 222.00

MOONG Special 11.00 21.00 21.00 25.00 47.00 91.00 222.00
(50% Udad &
50% Moong)

Punjabi Masala 11.00 21.00 21.00 25.00 47.00 91.00 222.00

Special

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Production
 63 branches, 40 divisions all over India;16 Branches in
Mumbai & its suburbs.

 Head office at Bandra

 Raw material purchasing is centralized to keep uniformity

in tastes

 Own laboratory in Mumbai to test & code the final product.

 Compulsory for each sister member to roll 3 kgs of papad

everyday.
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Production

 Branch Office normally operates from 5:00 am to 10:30

am

 On an average, papad rolling members can roll 1.5 to 2

kg of papad per hour

 Production costs borne by the papad rollers.

 Intentionally no introduction of any kind of technology for

production of papads

 30-35% of production is exported to UK, US, Japan,

Europe, Australia, Middle East etc.
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Marketing & Distribution

 Each branch markets its own products in the

allotted area

 Centralized Marketing Office

 Advertising in vernacular newspapers, television

& radio

 It attends the trade fairs which are organized/

promoted by the KVIC
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 Marketing & Distribution

 Wide network of Dealers & Distributors & excellent Goodwill

 Upfront deposit: 25,000 to 2,50,000

 Dealers Commission – 7%

 Retailers Margin
-Rs. 2.25 per 200 grams sold at Rs.14
-Rs. 26 per 2.5 Kg. sold at Rs. 150

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Finance

 Accounting year from 1st April to 31st March

 Sales for papad – 11.81 crores (Audit report 2003-2004)

 Purchase of Raw Material exempt from tax

 Papad as a product is exempt from Sales Tax.

 It gets an interest subsidy from the KVIC

 The organization seeks financial assistance from Bank of

India, Bank of Baroda, Dena Bank and KVIC

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Human Resource

 Workforce – 42000 women

 Organization is by the women, of the women &

for the women

 Sign the Pledge Form to become a member.

 Interaction through Area Meetings, AGM’s & All

India Convention
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Human Resource

 Woman of any caste, creed, colour, who can

render physical work can become a sister member

 Minimum age should be 18 years

 Training for new members is on-the-job for 15

days

 Allotment of work decided by sister members by

consensus

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Human Resource

 Payment, called ‘vanai’ made straightaway; average

monthly ‘vanai’ for each sister member is Rs-2000 to
Rs.3000 for roughly 6 hours of work.

 For 1 kg. Papad rolled, Rs.70/- paid as ‘vanai’

 During Festivals & special occasions, ‘extra vanai’ is

paid to the sisters.

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Welfare Facilities for the ‘Sisters’

 Minibuses to come to the branches everyday

 Preventive Health Care programmes

 Compulsory primary education for all sister members

 Scholarships or Grants to the dependents of the sister

members

 No Retirement Benefits

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Corporate Social Responsibility

 Give - back policy

 Rehabilitation of Chincholi, Latur & Bhujpur

 Draught Relief Work

 Participation in Asha Dhan activities

 Tsunami Donation

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Lijjat – Critical Success Factors

 Merging of Ownership with Membership

 Consistent quality of the product

 Informal Work Environment

 Make Leaders out of ordinary women

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Threats to Lijjat

 Fake Lijjat papads in market.

 Fast growth has caused few state governments

to withdraw tax exemptions

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Future Plans

 Expansion of production facilities and establishment of

new facilities to cope with the increasing demand.

 Diversification will be looked at, if:

- proposal for the same is put forth by a sister

member or well wishers

- the idea can generate jobs on a large scale

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