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Topic Small Scale Industry (Lijjat Papad)

Index
Sr. no. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Topic Introduction History and growth Core Value Organisation Structure Products Diversification Whats New Trade Quotations Problems Scope and Future Bibliography

Introduction
Shri Mahila Griha Udyog Lijjat Papad, popularly known as Lijjat, is an Indian, women's organization involved in manufacturing of various fast moving consumer goods. The organization's main objective is empowerment of women by providing them employment opportunities. Started in the year 1959 with a seed capital of Rs. 80, Lijjat today has an annual turnover of around Rs.520 crores, with Rs. 250 crore in exports and provides employment to around 42,000 employees. Lijjat is head quartered in Mumbai and has 72 Branches and 27 Divisions all over India. Lijjat is primarily a cottage industry, urban by its origin, that has spread to the rural areas. It is considered as one of the most remarkable entrepreneurial initiatives by women that is identified with female empowerment in India.

History and Growth


Lijjat was the brain child of seven semi-literate Gujarati housewives from Bombay (now Mumbai). The women lived in Lohana Niwas, a group of five buildings in Girgaum. They wanted to start a venture to create a sustainable livelihood using the only skill they had i.e. cooking. The seven women were Jaswantiben Jamnadas Popat, Parvatiben Ramdas Thodani, Ujamben Narandas Kundalia, Banuben. N. Tanna, Laguben Amritlar Gokani, Jayaben V. Vithalani, and one more lady whose name is not known. The women borrowed Rs 80 from Chaganlal Karamsi Parekh, a member of the Servants of India Society and a social worker. They took over a loss-making papad making venture by one Laxmidasbhai and bought the necessary ingredients and the basic infrastructure required to manufacture papads. On March 15, 1959, they started with the production of 4 packets of Papads. They started selling the papads to a known merchant in Bhuleshwar. From the beginning, the women had decided that they would not approach anyone for donations or help, even if the organization incurred losses. Initially, the women were making two different qualities of papads, in order to sell the inferior one at a cheaper rate. Chaganbapa advised them to make a standard papad and asked

them never to compromise on quality. He emphasized to them the importance of running it as a business enterprise and maintaining proper accounts. Lijjat expanded as a cooperative system. Initially, even younger girls could join, but later eighteen was fixed as the minimum age of entry. Within three months there were about 25 women making papads. In the first year, the organization's annual sales were Rs. 6196. The group got considerable publicity through word of mouth and articles in vernacular newspapers. This publicity helped it increase its membership. By the second year of its formation, 100 to 150 women had joined the group, and by the end of the third year it had more than 300 members. An attempt to start a branch in Malad suburb of Mumbai, in 1961, was unsuccessful. In 1962, the name Lijjat (Gujarati for "tasty") was chosen by the group for its products. By 1962-63, its annual sales of papads touched Rs. 1.82 lakh. In July 1966, Lijjat registered itself as a society under the Societies Registration Act 1860. In the same month, on Chaganbapa's recommendation, U N Deodhar, the chairman of KVIC personally inspected the Lijjat. KVIC or Khadi Development and Village Industries Commission is a statutory body set up by the Government of India for development of rural industries. In 1966, KVIC granted it a working capital of Rs. 8 lakhs (0.8 million) and was allowed certain tax exemptions.

An attempt to start a branch in Sangli town, in 1966, was unsuccessful. The first branch outside Maharashtra was established at Valod, Gujarat in 1968. After tasting tremendous success with their papads, Lijjat began producing other products like khakhra (1974), masala (1976), vadi, wheat atta, and bakery products (1979). In 1970s, Lijjat set up flour mills(1975), printing division (1977) and polypropylene packing division (1978). The group also initiated some unsuccessful ventures such as cottage leather (1979), matches (1979), and agarbattis (incense sticks). In 1987, Lijjat purchased new premises at Kamal Apartments in Bandra, a suburb of Mumbai. The registered office shifted to the Bandra with effect from July 1988. In 1988, Lijjat entered the soap market with Sasa detergent and soap.. Sasa had annual sales of Rs 500 million, accounting for 17 percent of Lijjat's total turnover in 1998. In March 1996, the 50th branch of Lijjat was inaugrated in Mumbai. In 1980s, Lijjat also started taking part in several trade fairs and exhibitions, which improve its sales and made the brand name "Lijjat" well-known among the people. The advertising was undertaken through the vernacular newspapers, television and radio. The institution sponsored programs and gave away gifts for the winners of specific shows in the television. In the 1980s and 1990s, Lijjat started attracted attention of foreign visitors and officials. The Vice-President of Uganda, Dr.

Speciosa Wandira-Kazibwe, visited Lijjat's central office in January 1996, since she wanted to start a similar institution in Uganda. Lijjat started exporting its products with the help of merchant importers in the United Kingdom, the United States, the Middle East, Singapore, the Netherlands Thailand, and other countries. Its annual exports accounted for more than US$2.4 million in 2001. Lijjat received the "Best Village Industries Institution" award from KVIC for the period 1998-99 to 2000-01. In 2002, the "Businesswoman of the Year" award was given to "The Women Behind Lijjat Papad" at The Economic Times Awards for Corporate Excellence. At the awards ceremony, the President of Lijjat urged the State Governments of Maharashtra and Punjab to reconsider their decision of withdrawing the tax exemption on Lijjat's Sasa Detergent. In 2002, Lijjat had a turnover of Rs 3 billion and exports worth Rs.100 million. It employed 42,000 people in 62 divisions all over the country. The 62nd branch became operational at Jammu and Kashmir in 2002, enrolling over 150 members. In 2003, Lijjat received the "Best Village Industry Institution". It also received the PHDCCI Brand Equity Award 2005. Lijjat marks its 50th year of existence on March 15, 2009.

Core Value

Shri Mahila Griha Udyog Lijjat Papad is synthesis of three different concepts, namely, (1) (2) (3) The concept of Business The concept of family The concept of Devotion The institution has adopted the concept of business from the very beginning. All its dealings are carried out on a sound and pragmatic footing - Production of quality goods and at reasonable prices. It has never and nor will it in the future, accept any charity, donation, gift or grant from any quarter. On the contrary, the member donate collectively for good causes from time to time according to their capacity. Besides the concept of business, the institution along with all it's member sisters have adopted the concept of mutual family affection, concern and trust. All affairs of the institution are dealt in a manner similar to that of a family carrying out its own daily household chores. But the most important concept adopted by the institution is the concept of devotion. For the member sisters, employees and well wishers, the institution is never merely a place to earn one's livelihood It is a place of worship to devote one's energy not for his or her own benefits but for the benefit of all. In this institution work is worship.

Organization Structure

Products
Different Products of the organizations are as follows: 1. Papad 2. Khakra 3. Vadi 4. Masala 5. Aata 6. Bakery Products 7. Chapati 8. Detergent

Diversification
Shri Mahila Griha Udyog has diversified its various activities. Besides it's world famous papads it also currently has

A Flour Division at Vashi (Mumbai) where flour is milled from Udad Dal and Moong Dal. A Masala Division at Cottongreen (alongwith a Quality Control Laboratory) at the same place where different kinds of spice powders like Turmeric, Chillies, Coriander and ready mix masala and like Garam Masala, Tea Masala, Pav Bhaji Masala, Punjabi Chole Masala etc. are prepared and packed in consumer packs. A Printing Division also at the same place. Lijjat Advertising Division at Bandra (Mumbai) A Khakhra Division at Buhari (Dist-Valod) Chapati Divisions at Wadala, Borivali, Mulund & Kandivali (Hanuman Nagar) A Polypropylene set-up at Kashi-Mira Road. A Vadi producing factory at Valod. A Bakery Division at Valod. A Detergent Powder and Cakes manufacturing unit at Pune (Sanaswadi) and Hyderabad.

Whats New
Beware of fake Lijjat Papad
Our valued Customers particularly from USA, U.K. & other countries are hereby cautioned that fake Lijjat Papad packets are being circulated in the Market. Genuine Lijjat Papad packets are being solely manufactured by its 62 authorised Branches all over India which has Mumbai Head Office Address. Fake Lijjat Papad have no Mumbai Head Office Address and that is sure proof of they are being fake. Hence people are cautioned to ask for only genuine Lijjat Papad packets and check the original Lijjat Trademark and photograph of a boy 'Babla - eating papad alongwith Bunny Rabbit with papad in hand' before buying to get value for your money.

Trade Quotations (Papad)


Dealer Price(in Rs) Papad

Items

Udad Udad Udad Moong Udad Moong Punjabi with with with (50% Special Special Masala Pepper Garlic & Red Udad & (50% Special Chillies Chillies 50% Udad & Moong) 50% Moong) 13.00 13.00 13.00 14.00 14.00 14.00 14.00

Small / Big Size 100 gms Small / Big Size 200 gms Mini Size 200 gms Small / Big Size 250 gms Small / Big Size 500 gms

25.00

25.00

25.00

28.00

28.00

28.00

28.00

25.00 30.00

25.00 30.00

25.00 30.00

28.00 35.00

28.00 35.00

28.00 35.00

28.00 35.00

59.00

59.00

59.00

66.00

66.00

66.00

66.00

Small / 115.00 115.00 115.00 Big size 1 Kg Small/Big 285.00 285.00 285.00 Size 2.5 kg

130.00

130.00 130.00

130.00

320.00 320.00 320.00

320.00

Consumer Price(in Rs) Papad

Udad with Items Pepper

Udad Udad Moong Udad Moong Punjabi with with (50% Special Special(50% Masala Garlic Red Udad & Udad & 50% Special & Chillies 50% Moong) Chillies Moong) 16.00 16.00 17.00 17.00 17.00 17.00

Small 16.00 Size 100 gms mini size 200 gms 30.00

30.00

30.00

34.00

34.00

34.00

34.00

small 30.00 size 200 gms Big size 250 gms Small / Big size 500 gms 36.00

30.00

30.00

34.00

34.00

34.00

34.00

36.00

36.00

42.00

42.00

42.00

42.00

71.00

71.00

71.00

80.00

80.00

80.00

80.00

Small 138.00 138.00 138.00 156.00 / Big size 1 kg. Small 342.00 342.00 342.00 385.00 / Big Size 2.5 kg.

156.00

156.00

156.00

385.00

385.00

385.00

Problems
In 1985, the Lijjat branch at Jabalpur was taken over by one Shantilal Shah as his own unit, which he ran with the help of a Sanchalika (branch head), who was wife of his employee. Lijjat went through tremendous pressures and court stay orders to retrieve the situation. As its popularity grow, Lijjat started facing the problem of fake Lijjat papads being introduced in the market. In June 2001, three persons were arrested in this connection, in Bihar. Lijjat's website explains the identification features of original Lijjat papads.

Scope and Future Of Organization


Lijjat papad is a brand with a difference .This brand is a special one because it makes a difference in the livelihood of thousands of poor women in India.Pappad is a form of Indian crispy bread. The food is taken as a snack and also along with lunch and dinner. Lijjat has become an integral part of the Indian palette through sheer determination and hard work.The most important factor that the made this brand a success was the careful operational planning that goes behind the brand. The brand is having the strength of Consistently Good Quality as its USP.Recently this brand is also facing competition from other players. Unlike other social brands, Lijjat was serious about advertising. The brand communicated its Crispness and quality through its ads.The ads features a Bunny ( mascot) and a very popular jingle Khurram Kharram. The positive word of mouth, the advertisement, the consistent good quality and the distribution made this brand highly successful. The company has also diversified into detergent branded SASA and other food products. The brand is a unique success story. The story of a movement that changed the lives of more than 40000 poor women.