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T.Y.B.M.S. [Semester V]

DHERI (E), MUMBAI - 400 069

2008 - 2009

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T.Y.B.M.S. [Semester V]
DHERI (E), MUMBAI - 400 069


2008 - 2009



Project Source URL

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I, SHAIKH FAHAD student of TYBMS Shri Chinai College of Commerce and
Economics (Semester vth ) hereby declare that I have completed this project on WOME
2008-2009. This information submitted is true and original to best of my knowledge.
Signature of the Student



ITA PIMPALE hereby certify that SHAIKH FAHAD student of T.Y.BMS
Shri Chinai College of Commerce and Economics (semester v) has completed the project on
academic year 2008-2009. The information submitted is true and original to the best of my
Signature of the Project Guide

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It gives me immense pleasure in presenting this project on the topic of
’S CO-OPERATIVE.” In this project, i have given brief description
about the organization, which has been started by the women’s organization.
I’m thankful to SHRI CHI
AI COLLEGE Of COMM. & ECO., for offering
me this course.

I wish to take this opportunity to express my deep sense of gratitude to
Dr. Vinita Pimpale, faculty of SHRI CHI
for being my guide for this project. She has been a constant course of
inspiration and i sincerely thank her for her suggestion and help in preparing
this report.

I would also like to express my deep sense of gratitude to the members of
the organization for their co-operation and providing adequate information
about the company and related information.

Last but not the best; i would like to express my sincere gratitude to my
parents, teachers, and friends for their support, co-operation and their prayers
without which my project would not have been completed.

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popularly known as “Lijjat”, needs no introduction. Lijjat is
woman’s organization manufacturing different products of village
industries, having its central office at Mumbai. Lijjat is spread all
over India. It has 69 centers and 31 divisions in different states.
In 1959, Girgaum, Mumbai Shri mahila griha udyog Lijjat
Papad made a beginning under the blessing of Shri Chhanganlal
Lkaramshi Parekh popularly known as ‘Pujya Chhaganbapa’ who
was a member of the servants of India society and a highly successful
social worker. In 1996 it was recognized by the khadi & village
industries commission under the chairmanship of Pujya Uchhangral

. Dhebar.
A deeper insight by the report shows Lijjat’s achievements and
services renders to the society and how it has help the Indian
economy to grow tremendously in the past few years and in the tears
to come.
What is the reason for its success? The working of the
organization, management future plans. Lijjat is the story of a
business house that has created wealth for a nation and the story of
pioneers like Pujya Chhaganbapa, Pujya Uchhangral
. Dhebar.

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mbaguys.mbaguys.Contributed by members of www. Project Source URL .net SECTIO 8  PROBLEMS FACED BY LIJJAT PAPAD &THEIR SOULTIO  FACTORS FOR SUCCESS SECTIO 9  CO CLUSIO  BIBLIOGRAPHY. Project Source URL http://www.Contributed by members of .

3. with Rs. Lijjat is primarily a cottage industry. and India’s biggest ‘Papad’ success story is Undoubtedly. that has spread to the rural areas.Contributed by members of www. urban by its origin. Everyone enjoys ‘rags to riches’ stories and everyone likes tales of stupendous success achieved through sheer . o Indian meal is complete without it. 80. The organization’s registered office is Situated in Mumbai and it has 69 centers and 31 divisions on different states. Stared in 1959 with a capital of Rs. Lijjat today has a Annual turnover of around Rs.mbaguys. is an Indian women’s organization manufacturing different Products of village industries.mbaguys. or a banquet or a meal at home. It is considered as one of the most remarkable enterprenual initiative by woman that is identified with women empowerment in India. The Papad finds its due place on the dining table.000employees. The story of Shri Mahila Griha Udyog Lijjat Papad is all that much SECTIO 1 Introduction Be it an evening snack. popularly know as “Lijjat”. Lijjat is spread all over Indian. Project Source URL http://www.12 In exports and has around 42. Shri Mahila Griha Udyog Lijjat Papad. Lijjat.315 crore (Rs.15 billion). Lijjat shows how an organization can infuse Gandhian simplicity in all its activities.

rural industrialization and promoting self-reliance among the people and to build up a strong rural community base. organize and assist in implementation of programmers for the development of Khadi and village industries.mbaguys. It plays a pivotal role in the strengthening of rural economy by promoting and developing Khadi and village industries.Contributed by members of www. promote.mbaguys.(Khadi & Village Industries Commission) The Khadi and village Industries Commission (KVIC) is a statutory organization established in 1956 by an Act of . Providing employment in rural areas. The main objectives of the KVIC include skill Shri Mahila Griha Udyog Lijjat Papad is registered under The KVIC Act. and transfer of technology. Project Source URL http://www. The functions of the KVIC are generally to plan.

The turning point of the institution came in 1966 when then Chairman of Khadi & Village Industries Commission Pujya Uchhangral . Dhebar visited the Institution and got it recognized by the Khadi & Village Industries Commission it was also registered under Bombay Public trust Act 1950 and also registered under Societies Registration Act. President. creed and color and agrees to abide by the Institution can become a member of the Institution from the date on which she starts working. Thus Shri Mahila Griha Udyog Lijjat Papad made a beginning under the Blessing of Shri.e. by the women and for the . 1860. The Objective of the institution is to provide employment to the ladies to enable them to earn decent and dignified livelihood. Vice.President. He was a noble man gifted with down-to-earth ideas.Contributed by members of HISTORY Lijjat Papad is a women’s organization of the women. Another important fact about the Institution is that a male person cannot become its member and any male employee whether working honorary or on Salary basis has no right whatsoever over Institution. 2 Secretaries and 2 Treasurers.mbaguys. The credit for rapid progress Project Source URL http://www. There is Central managing Committee consisting of 21 members out of. It was stared in 1959. Any women can render physical work in this institution without distinction of caste. All the branches are autonomous units for the purpose of profitability and the profit or loss as the case may be of such unit is borne by the owner sister member of that branch by increasing or decreasing her rolling charges accordingly. Mumbai with 7 lady members of the residential tenements of “Lohana iwas” gathering on the terrace of the building for a function by rolling 4 packets of papads and the decision to make papads. Every branch is headed by a Sanchalika to see the production of the branch. Chhanganlal Karamshi Parekh popularity Known as ‘Pujya Chhanganlal’ who was the member of the Servants of India society and a highly successful social worker. which there are 6 elected Office Bearers i. Girgaum. everyday.

Japan & and other countries. Europe. At present about 30 to 35 percent production of Lijjat Papad is being exported. Project Source URL http://www. Lijjat Papad has earned reputation not only in Indian but also in every nook and corner of the world. Honk.S. the first . Liquid Soaps.mbaguys. The worldwide demand for crisp and alluring Lijjat Papads always keep growing. Middle East and also in Singapore. 12 crores of exports. i. Thailand Holland. SASA Detergent Powder & Cakes. and Vadi. selfEmployment to about 42000 sister member all over Indian.. The sales which have amounted to only Rs.K.e. Gehu Atta & Chapattis.1959 have already touch the level of Rs. The main consumer countries include U. 300 crores which includes Rs. Bakery Products.A.196/.Kong.Contributed by members of www. U. Masala. Besides Lijjat Papad the institution has other products like Khakhra. 6. At present it has 69 centers * 31 divisions in different states and goes to the constant vigilance on the part of sister members maintaining the quality of Lijjat Papad with their hard work.

late Chhanganlal Karamshi Parekh and Damodar Dattani. marketing. involving over 40. who worked tirelessly from behind the scene. Lijjat is today guided by separate divisions of advertising. As the days went by. sales promotion and exports. What’s more stunning than its stupendous success is its striking simplicity. advertising and exports departments.mbaguys. Lijjat is more than just a household name for ‘Papad’ (India’s most popular crispy bread). the additions to this initial group of 7 was ever-increasing. Their vision was clear – an exclusive women’s organization run managed by them. There is greater coordination between branch offices (different production and marketing units) and centralized marking. a work environment which is not competition – driven and mechanized but based on pure labour and love for the organization and its people. Started with a modest loan of Rs 80.196 in the first year to Rs 300 crore in the next decades.Self-reliance was the policy and no monetary help was to be sought ( not even voluntarily offered donations) so work started on a commercial footing. The Beginning It all began on 15th March 1959 which was a warn summer day with the sun shining brightly in the cloudless sky. The function ended shortly. The cooperative now has annual sales exceeding Rs 301 crore (Rs 3. A group of seven women gathered on the terrace of the building and started a small inconspicuous function. 80/.1 billion). The Faith and patience of the member were put to test on several occasions –they had no money and started on a borrowed sum of Rs. these women took its turnover from Rs 6. The institution had its trials and tribulation.000 women on its revolutionary march. the result production. Gandhian business strategy. equally well executed by his followers. were busy attending their usual domestic chores. With quality consciousness as Project Source URL http://www. The institution began grow. and.Contributed by members of www. A majority of the women inhabitants of an old residential building in Girgaum (a thickly populated area of South Bombay).net/t603/ . finally.mbaguys. a quality product that these women had the expertise to make. It the early days were not easy. This pioneer batch of 7 ladies had th bait rolling.

net/t603/ .Contributed by members of www.mbaguys. Shri mahila Griha Udyog Lijjat Papad grew to be the flourishing and successful organization that it is today.mbaguys. PIO EERS OF SHRI MAHILA UDYOG LIJJAT PAPAD Project Source URL the principle that guided production.

net/t603/ .net Awards History The Institution has received an award from Khadi & Village Industries Commission as a “Best Village Industry” for the period 1998-1999 to 2000-2001. Project Source URL http://www. On 6th September 2003 the institution received the Economic Times award of “Businesswomen of the Year 200-2002 for Corporate Excellence”.mbaguys.Contributed by members of www. In January 2003 it received the award for “Best Village” at the hands of Hon’ble Prime Minister Shri Atal Bihari Vajpayee at new Delhi.mbaguys. On 21st December 2005 institution has received has received the “Brand Equity Award at the hands Hon’ble President of . DR.mbaguys. Project Source URL http://www.P.Contributed by members of www. ew Delhi.J Abdul kalam presented by PHDCCI at VIGYA BHAVA .

The organization is like a revered place of worship. the institution has also formed three ‘Golden Rules’ . 3. All the rights of the institution must belong to members only. The organization strictly observes the practice of maintaining the the accounts regularly. Three Golden Rules Besides basic principles like self-reliance. 3.Contributed by members of www. There must be clean and time bound accounting system. The organization is neither for the poor sisters nor for the rich ones-poor Sisters should remove the thoughts of poverty from should their mind and the rich sisters remove thoughts of their affluence. 7. It believes in running the business wisely and with practice good business ethics with dealers and consumers. 8. SECTIO 2 Basic thoughts 1. Project Source URL http://www. 6. The organization is like a family and sisters run it as if they all belong to the same family. There must be maintenance of “Lijjat” quality at any cost. co-ownership and faith in dignity of labour. writing the books daily and preparing balance sheets every month. 5. 2. It is a voluntary organization of sisters. o one can change these basic thoughts of the organization. It never accepts charity or grant. 2.

Such as construction of houses for Earthquakes affected families of ChincholiJogan (Latur) & Bhujpur. a place of worship to devote one’s energy not for his or her own benefits but for the benefit of all. On the contrary members donation collectively for good causes from time to time. The institution has adopted the concept of business from the very beginning. It a temple. a peculiar Lijjat way of thinking has developed therein. a church. In this institution work is worship. All the dealings are carried out on sound and pragmatic commercial footing quality goods and sells them at reasonable price.mbaguys. donation. 2. Project Source URL http://www. All the affairs of the institution are tackled on the very same pattern as a family carries out its own daily household chores. Besides the concept of business the institution has adopted the concept of mutual family affection. For the members as well the employees and the well wishers. concern and trust which are the ‘idée fixe’ of the members. It has never accepted nor is it ever going to accept any charity. The concept of Business. a mosque. All these concepts are completely and uniformly followed in this institution.mbaguys.Contributed by members of www. The concept of Family. gift or grant from quarter. Kutch etc. namely: 1. 3. the institution is never merely a place to earn one’s Philosophy that guides ‘Lijjat’ Shri mahila Griha Udyog Lijjat Papad is synthesis of three different concepts. The concept of Devotion. As a result of this . But the most important concept adopted by the institution is the concept of devotion. a gurudwara.

as the emphasis obviously was on earning one’s bread through daily work. Once. Project Source URL http://www. is published and circulated for a nominal rate to those interested in the activities of Lijjat. computers are now being used in some of Mumbai branches for accounts and administration. no machinery is used at the production level. in addition to presenting articles on women.mbaguys. However.Contributed by members of www. Gujarati. Marathi. Member sisters across all branches of Lijjat recite an all religion prayer before beginning their daily activities. including English. Because of Lijjat’s main motive of generating self. Leaving the organization is voluntary. There is no fixed retirement age at Lijjat. It is publish in many . when the president Jyoti aik was questioned about this anomaly. all through one’s life. and Hindi.mbaguys. the in-house SECTIO 3 Culture Lijjat Patrika. The sisters are free to choose their activities and each activity is given equal importance. and everything is done manually. she said that there was no need to make provision for a retirement age. o member sister can be asked to leave unless or until she goes against the organizational principals.employment for women. It has emerged as a strong mode of communication for information related to significant events and initiatives at Lijjat.

knitting. 1999. In 1979.Contributed by members of www. the managing committee decided to start such class in all its branches from 1980 onwards. At the behest of Mother Teresa. cooking. Alkaben Kalia represented Lijjat at the ational level meeting on women convened by ational Commission on Self Employed Women. Valod branch. first aid and hygiene were taught. Bhadraben Bhatt representation Lijjat at the U ISCO sponsored international workshop on “The role of women in the assimilation and spread of technological innovation” held at ITIE. Powai. Lijjat started giving Chhaganbapa Smurti Scholarships to the daughters of the member-sisters. Orientation courses in Role in women empowerment The growth of the Lijjat is often seen in the larger canvas of women and their empowerment. and toy making as well as other courses like child welfare. In October 1984.mbaguys. The first ever pucca (tarred) road in Valod to be built and inaugurated in 1973 was with the help of the Lijjat. The organization has undertaken various efforts to promote literacy and computer education for member-sisters and their families. Lijjat member-sisters also tried to start a co-operative bank. Lijjat teamed up with U ICEF to organize a seminar in Mumbai on “child Care and Mother Welfare”. an institution to care for destitute women. Project Source URL http://www.mbaguys. as part of the International Year of the child celebrations. the member-sisters also took part in some activities of Asha . but the effort was not very successful. Later. A literacy campaign for sisters began through literacy classes at Girgaum on June 18. The member-sisters used their organization as a medium to promote their and their families’ welfare. sewing. In the Valod centre they set up an educational and hobby centre for the rural women.

pay bills. A literacy campaign for sisters also began through literacy classes at Girgaum on June 18. participation in various trade fairs and exhibitions held across India contributed to the popularity of the Lijjat brand. Initially most sisters were uneducated. is publish and circulated for a nominal rate to those interested in the activities of Shri Mahila Griha Udyog. the managing committee decide to start such classes in all its branches. production rates. but realize the important of education for their children. and everyday problems to assure a better work environment. Lijjat Patrika has emerged as a strong mode of communication for information related to significant events and initiatives at Lijjat. especially daughters.Contributed by members of www. assist her husband in his work. the need for information dissemination and communication among member sisters at various branches has increased. it was explained that a literate woman can read or write a letter. Such participation also builds self-confidence. maintain a bank accounts. in addition to presenting articles on women. the handling of accounts. and all -India conventions of branches are held to keep the members aware of organizational activities and . Later. and to discuss issues such as quality maintenance. the in-house magazine. and to discuss issues such as quality activities and strategies. Besides other interactive and information-based activities. Lijjat Key elements of Empowerment Information With increasing business and other advances. at first. through exposure and training opportunities. and live independently. teach her children.mbaguys. for the member sisters who play a significant role in the overall functioning of Lijjat. 1999. annual general meetings. Project Source URL http://www.mbaguys. The monthly regional meetings. Lijjat offers scholarships for these children to encourage better performance in studies.

net/t603/ . Leaving the organization is voluntary. Project Source URL http://www. pounding the flour.mbaguys.Contributed by members of www. The interests of all sisters are treated equally. and everything is done manually. o member sister can be asked to leave unless or until she goes against the organizational principles. Member sisters across all branches of Lijjat recite an all-religion prayer before beginning their daily activities. which is her assurance for earning an honest income through cooperative work. rolling papads. weighing the flour. The sisters are free to choose their activities. Each activity is given equal importance. checking the papads. Any sister can apply for a loan from the organization without specifying the reasons. distributing wages. women have also realized the importance of social independence. When a new branch of Lijjat opens. a neighboring Lijjat branch helps it by guiding and training new members. preparing the dough. such as making the masala (blend of multiple spices). can become a member after signing a pledge of devotion. because they sisters from the Lijjat family. As well as acquiring some financial independence. and handling the accounts. However. packing the papads. caste.mbaguys. no machinery is used at the production level. and sisters perform these activities with mutual cooperation and consent. irrespective of her religion. computers are now being in some of the Mumbai branches for accounts and administration. or class. Because of Lijjat’s main motive of generating self-employment for women. Because women own the organization. Any woman. lower-middleclass women find it very comfortable to work in such an Key elements of Empowerment The combination of inclusion and the active participation of women have endured as Lijjat’s backbone for 43 years. receiving papads after weighing.

The cost of nationallevel advertising is borne by all branches and divisions. There is no credit method for running operations in the organization. for instance. The managing committee members are selected from the member sisters on the basic of common consent. Any member sister can express her interest to be a managing-committee member and be selected after due  Accountability Lijjat presents an explicit example of organizational accountability. depending on their individual production abilities. there is only a 0.Contributed by members of www. the profits of the first six months were shared equally among all sisters in the form of gold. A single member’s object can nullify the decision of the whole group. and decision powers lie in the hands of the sisters who are present on that day. The polypropylene division provides money for advertisements and recovers it through additional charges on the bags that it supplies to the branches and divisions across India. This sharing practice is still in effect. Lijjat follows its own financial accountability principle.5 rupee margin between the production cost and selling price of a 200-gram Papad pack. but now the decision whether to share the profits in gold or in cash is made at the branch level. but no employee can ask a member to quite. except for the outside supply of raw material. Profits and losses are shared equally among the members of a given branch. a member can be asked to quite by another member (or members) if found be involved in false practices or misconduct. There is a “piece rate” system. However. In the initial days of . The discussions are held openly. Account books are easily accessible. Every payment is done on a daily basis. ensuring transparency in Lijjat’s working. and sisters are paid on the basis of the number of papads they roll.mbaguys. Project Source URL http://www.mbaguys. A member can ask an employee to quite without specifying the reason.

Lijjat’s activities were limited to the former Bombay. even if they suffered losses. For instance. including Rs1 million from the central office. Project Source URL http://www.Contributed by members of www. and afterward was recognized as a public trust. When they started their venture. after the earthquake in Gujarat in January 2001.mbaguys. This practice has become financially sound after establishing itself in the market through consistent quality in its production. Initially. followed by branches in other states such as Gujarat. Andhra Pradesh. There are a number of other such instances that have contributed to enhancing the self-esteem of the member sisters. but also provides help to the . and Madhya Pradesh. They occasionally promote similar organizations in their own countries. have visited India to see Lijjat’s methods of operation. After continued success and phenomenal growth during the last four decades.8 million. but in 1966 it started to establish centers in neighboring urban areas. Lijjat has emerged as an organization that not only denies any donations from other parties. Lijjat has been able to make its presence felt worldwide. all the branches of Lijjat gave a total donation of more than Rs 4. the United Kingdom. the seven women were determined not expect donations or help from anyone to run the  Local Organizational Capacity Lijjat became a formally complete organization by the seventh year of its existence. Punjab. A number of people. and Uganda. Iran. including officials from countries such as Israel. Sri Lanka.mbaguys. Sudan.

net SECTIO 4 Organization Structure and Management In order to ensure that the working of the trust was professional. Priyanka G. Smt. Sawant .Contributed by members of www. irrespective of caste or religion willing to work in any capacity could become a member by signing a pledge of devotion to the basic tenets of the organization. Pratibha E.Bearers 1.mbaguys.Vice-President 3. an organization structure and certain professional guidelines were put in place. Smt. Paradkar . Any women.mbaguys. Sheetal S. Koyande . Member-sisters owned the enterprise. Belnekar .Treasurer 6.Secretary 4. Six Offices . Redkar . Smt. aik . Sunanda R. Smt. It was a commitment to earn legitimate honest income thought wok on a cooperative basis.President 2. Swati R.Secretary 5. Jyoti J. Smt.Treasurer Project Source URL . Smt.

The members are co-owners and fondly referred to as "sisters".net/t603/ . Tamil adu. The cost of national-level advertising is borne by all branches and divisions. drivers or security guards). To co-ordinate various branches in a region or state. Men can only be salaried employees (accountants. Kerala. the sanchalikas still need the managing committee's approval before they undertake any new project or activity. Every payment is done on a daily basis. Profits and losses are shared equally among the members of a given branch.mbaguys. However. Project Source URL http://www. Currently. All the branches follow the same set of instructions and have similar accounting system. Each branch has a committee eleven member-sisters. and not the members of the organization (i. and everything is done manually. Bihar. But.Contributed by members of www. but now the decision whether to share the profits in gold or in cash is made at the branch level. except for the outside supply of raw material. Madhya Pradesh. Haryana. All the decisions are based on consensus and any member-sister has the right to veto a decision. the profits of the first six months were shared equally among all sisters in the form of Lijjat believes in the philosophy of sarvodaya and collective ownership.mbaguys. the authority was decentralized in terms of work and sharing of profits at the branch level. computers are now being used in some of the Mumbai branches for accounts and administration. However. Lijjat has branches in seventeen Indian states -. The annual general meeting is attended by member-sisters representing branches and divisions all over India. again chosen by consensus. there are branch coordination committees and area meetings of various branches in a state. no machinery is used at the production level. and two treasures. ensuring transparency. the Vice-President. Because of Lijjat's main motive of generating self-employment for women. Gujarat. Jammu and Kashmir. The central office at Mumbai previously coordinated the activities of various branches. two secretaries. The office bearers of the managing committee and the sanchalikas are chosen from among the member-sisters on the basis of consensus every three years. There is no credit method for running operations in the organization. Rajasthan. Delhi. Sanchalikas are in-charge of various branches and divisions. as the organization grew.Andhra Pradesh. In the initial days of Lijjat. Uttar Pradesh. including the President. Maharashtra. The running of the organization is entrusted to a managing committee of twenty-one members. they are not the owners).e. Lijjat follows its own financial accountability principle. Account books are easily accessible to all the member-sisters. Jharkhand. Orissa. Karnataka. and West Bengal. depending on their individual production abilities. It accepts all its working members as the owners and an equal partaker in both profit and loss. This sharing practice is still in effect. Punjab.

000 each as bonus. the central committee reduces the daily wages of its members by 1 rupee. When a new branch of Lijjat opens. asafetida is imported from Iran. the member-sisters at the Rajkot branch received Rs 4.Contributed by members of www. To avoid any inconsistencies. On successive failures of a branch to abide by the organization's philosophy of consistent quality and production of papads. The member-sisters are also rewarded for extra .mbaguys. For example. the quality issue and modifications are tested. the final products are tested in the Lijjat's laboratory in Mumbai. The central office purchases and distributes all ingredients to maintain the quality of the final product. for their extra efforts. Project Source URL http://www. In the monthly meetings. in 2002. the urad dal is imported from The quality of papads can vary due to quality of water used in various parts of India. while the member sisters at Mumbai and Thane branches received a 5-gram gold coin as an incentive. and black pepper comes from Kerala. who were rewarded with the cash or gold. a neighboring Lijjat branch helps it by guiding and training new members. Several issues of Lijjat Patrika enumerate the names of the names/numbers of the member-sisters. The committee often makes surprise visits to various branches to assure that production conditions are hygienic. For instance.

those involved in the rolling of the papads also need to have a clean house and space to dry the papads they roll every day. In some smaller towns or villages. In addition to that. Those who do not have this facility can take up any other responsibilities.mbaguys. Each depot stocks production from the nearby three to four branches -.6 kg) and the production from each centre is transported to the depot for that area. the branch itself serves as the depot. Packed papads are sealed into a box (each box holds 13. Mumbai alone has sixteen branches and six . The depots are our storage areas as well as pick up points for distributors. Distribution flow chart Project Source URL http://www.mbaguys.Contributed by members of www.roughly about 400 boxes. Any woman who pledges to adopt the institution's values and who has respect for quality can become a member and coowner of the How the system works The entire cycle starts with a simple recruitment process. like kneading dough or packaging or testing for quality.

they first give an advertisement in newspapers for the areas they have marked. but they have appointed a distributor for that area to ensure that Lijjat papads reach Goa. or sisters) every day. This is where their job ends. Export production is of the same quality as daily production. Exports Their exports alone account for Rs 10 crore (Rs 100 million). they open a new branch. they produce accordingly. Because all exports are done from Mumbai. In fact.mbaguys. They make it clear to them that they must pay on delivery if they want our distributorship. they do not have any centre in Goa. Members from their marketing division personally go and check the godown facilities and only on their approval do they appoint distributors. Each distributor picks up an average of 100 boxes per day from the depot. This ensures that they neither stock inventory nor pay heavily for storage. price. their goods reach there. they send some of the daily production for export.000 as deposit. Whether or not they have a centre in an area. Project Source URL http://www. They do not have individual door-to-door salesmen or women selling from homes -only the appointed distributor for the area.mbaguys.Contributed by members of www. etc. For example. To select a distributor. They are not directly involved in exporting. The same system is followed for other products. like the recently opened one in Jammu and Kashmir. Only on receiving the full advance through a cheque do they begin production. They are not involved in how and where a distributor delivers as long as he stays within the area they have marked for him. They have about 32 distributors in Mumbai. When they discover that there is demand in a particular place. Generally each distributor has his three-wheeler and about eight to ten salesmen to deliver to retail outlets within his territory. A distributor pays them Their distributors pick up the quantity of papad they require and pay cash on delivery because they pay their bens (members are called bens. . but they may have different distributors and depots for different products. Since they have an estimate of the quantity each distributor takes. the supply also comes from here. Their communication with distributors is regular through monthly meetings where they discuss their problems and also the issues that they may have about quality. This system is followed all over India and it works well for them. but recognized professional merchant exporters (who also export other food products) place an export order.

the United Kingdom. depending on the profit. and Gujarat has between 5.Contributed by members of www. Even a ben who has recently joined gets the same share as others who have been with us longer. At present. Hong Kong and Holland. Profit (or loss. mainly to countries like the United States.000. irrespective of seniority or responsibility.5gm or 10 gm. if any) is shared among all the members of that branch. our responsibility ends with delivery. They have a committee of 21 that decides how the profits are to be Collection flow chart Again with exporters. Project Source URL .000 members. expected and encouraged to check the goods on collection. Mumbai has 12. where and how they export is their call. They are. the rest of Maharashtra has 22. the Middle East. After that. 30 per cent to 35 per cent of the production of Lijjat Papad is being exported.000 and 7. Singapore.mbaguys.mbaguys. irrespective of who does what work. Distributing profits They have accountants in every branch and every centre to maintain daily accounts. Each branch calculates its profit and divides it equally among all its members. Everyone gets an equal share of profit.000 members. both. They generally buy gold coins -.

These plastic bags are manufactured without any technical help or machinery. The packaging Project Source URL http://www. Lijjat has been maintaining of the same standard since the day of its existing. instead they also try to mistakes is borne by all the sister members. instead it is hand-made. The checking of the papads is done in a batch. and if any of the Papad does not conform to the Lijjat standard then the whole batch is disposed . the institution not only tries to find out that who has made the mistake. The next morning the sister members bring these papads back.30 a. In the second stage the rolled papads are send to the quality control department for the regular quality under the supervision of quality control executive. These employees are also women.mbaguys. in the morning when the entire sister members come to collect their respective dough.Contributed by members of www. They collect it and go back to their homes and start rolling rolling the dough. The institution ensures that these defective papads do not reach the market. This guarantees that they never reach the market. The rolled dough is then dried on a piece of cloth under sunlight. but if the loss is small or minute then the member who has made the mistake itself bears the SECTIO 5 Production & Packaging Process The production process begins at 4. in case of heavy losses.m. In case of any mistake. The institution itself carries out the packaging process instead of having collaboration with others.mbaguys. hence they are disposed in the sea instead of garbage bin.

Valod district) • Chapati Divisions at Wadala. Bandra • Khakhra Division. Mulund and Kandivali • Polypropylene set-up (Kashi-Mira Road) • Vadi factory (Valod) • Bakery Division (Valod) • Detergent Powder and Cake manufacturing unit (Dahisar) and office (Boriovali) Project Source URL http://www.Contributed by members of www. ( . The bags that are used for packing papads are Polpopryin (PP) bags. Borivali. These bags are manufactured at a factory situated at Dahisar. Diversifications Lijjat has several divisions and manufacturing units: • Flour Division (Vashi) • Masala Divisions and Quality Control Laboratory (Cotton Green) • Printing Division (Cotton Green) • Advertising department comprises of 70 sister members.

Though each branch is responsible for the marking of its products in the areas allotted to it. But Lijjat has also expanded to the orth – Delhi. Lijjat marking its products through a wide network of dealers and distributors all across the country. but none seem to be able to make any dent in Lijjat’s share of the industry as their core business is not Papad. to the Kashmir market as well.mbaguys. Jamshedpur. During the month of ovember 20002. who wishes to remain unnamed (as that would shift the attention from sister-members to employees and thus violate Lijjat’s Project Source URL http://www. Himachal Pradesh and.000 packs of 250 gram pack of Papad are sold and the total income crossed Rs 0. Some of its home turf in Maharashtra and Gujarat has been captured by a growing completitive local market.5 Kilogram packs respectively. Rather. This coupled with a healthy upward trend in the export of Lijjat Papad positions Lijjat as the strongest brand in the Papad industry.mbaguys. is a matter of concern for Lijjat management.Contributed by members of www.25 and Rs 26 on the investment of Rs 14 for 200 grams and Rs 150 for 2. There are 24 dealers for Ranchi branch in cities like SECTIO 6 Market Positioning As a business enterprise. Rs 288 crore (200-2001) and Rs 281 crore (2001-2002). over the years. . and has never chosen to sell or push its products directly through the vast network of its office and sister-members even during the initial years. the declining sales figure for three consecutive years – Rs 298 crore (1999-2000). The other big brands in the Papad market are Bikaner. According to the accountant at Lijjat’s Ranchi branch. MDH and Saktibhog. Punjab. Lijjat has developed cordial and mutually beneficial relationships with its dealers. Patna. Gaya. with the latest branch in Jammu.65 million. the new centralized marketing offices now procure surplus production from different branches and market it at an all-India level. Dhanbad. Siters claim they believe in doing the business wisely and on sound business ethics. around 40. Dealers are given a set commission of seven percent and retailer’s earnings are fixed between Rs 2.

mbaguys. Project Source URL http://www. noong.mbaguys. and its recipe combining udad.Contributed by members of www. Lijjat has already become a household name as a symbol of women’s strength and . Thanks to sound principles and traditions). pepper and hing has conquered the Papad-eater’s palate. from 2003 Lijjat is aiming at a sales target of a million rupees every month.

Contributed by members of • Products Lijjat’s manufactures several products.mbaguys. of which the Papad is the most famous: • Papad (five flavors: lasan. Punjabi and urad) • Khakhra • Appalam • Masala • Vadi • Gehu Atta(Wheat flour) • Bakery products • Chapati • SASA Detergent Power • SASA Detergent Cake (Tikia) • SASA ilam Detergent power • SASA Liquid Detergent THE LIST OF PRODUCTS AVAILABLE: Project Source URL http://www. . mirch.

net • Pricing Shri mahila Griha Udyog Lijat papad adopts a Cost Plus Pricing Strategy for all their products.g. While calculating the price the following expenses are taken into consideration:  Cost of Raw material  Rolling Charges  Packaging Costs  Selling Expenses  Administrative expenses A certain makup is then added to these costs to account for the profits. Therefore they concentrate more on cost effectiveness and quality rather than on more expensive modes of promotion like advertisements. The extremely famous ‘bunny rabbit’ campaign continues to be aired on specific regional channels. • Promotions At Shri Mahila Griha Udyog Lijjat Papad. Sun ect.2% of total turnover. Project Source URL http://www. The distributors also need to be motivated properly. should they exceed this target. they believe that the best promotion they could possibly receive is by word of mouth.mbaguys. the distributor will receive a further 1% discount. so that they in turn make a greater effort to sell large volumes of the products to the .e.mbaguys. They also advertise in English and regional newspapers. Alpha Guajarati. Alpha Bengali. 60 lakes. The Lijjat products are targeted at the middle and lower segments of society. For e. Therefore annual expense on advertisement and promotion amounts to Rs.Contributed by members of www. a mere 0. These segments are highly price sensitive and hence this method of pricing allows them to market their products extensively. Targets are set quarterly for the distributors i.

net A ALYSIS  SWOT Analysis  Strengths • Sincere Hardwork • Development of woman by proding them a living / employment. • In . the major competition or threat is posed to the institution by Ganesh Papad.  Threats -. Project Source URL http://www. • Having a unique status in the country.  Weakness The institution does not believe in holding any weakness for a permanent or a long period of time.In terms of competition -• In the Papad industry.Contributed by members of www. P&G ect. • In the spices industry.mbaguys. • Maintaining the same standard over the last 45 years. there are many competitors like HLL. the Haldiram and MDH are the major competitors.

there is a managing committee of 21 managers that manages the organization. It is very well put in their mind that this institution is just for them.  Promoters There are no promoters for the institution.Contributed by members of www.  Organization Chart The Organization chart as follow: Overall.mbaguys. This is because their services are not required. inety percent of the member are those women whose husbands are either disabled or drunkard or do not . This is because they have a policy of believing that every person working for them is a member and not a  Employees / Members There are approximately 42.00 sister members working for Lijjat Papad not as employees but as co-owners or partners. Project Source URL http://www.

Every day. In spices and detergent industry the market share is 15-20 . Bank of Baroda. The rate of Project Source URL http://www. Some even roll upto 20 kgs. The vanai paid to the members depends upon the number of kilos rolled by them.270/. The Papad is available in many denominations from Rs. This is perhaps the only concession offered to the institution by the Government of India. The interest rates for the loans are @ 12% but this is where the institution gets a concession as 8% out of the out the 12% is paid by KVIC and remaining 4% by the institution itself.  Technical collaboration The organization does not have technical collaboration with any other company as no machinery is used in production. Everything is manmade / handmade.  Vanai The institution has a trend of calling wages as vanai. Dena  • Markets Market Segmentation The institution does not do market segmentation because they do not target age group or income group because their product is for all the masses and classes. It is a product which is consumed in each and every house as it is affordable to all.Contributed by members of Rs.  Market share Lijjat papad occupies 90% of the papad market in India.  Sources of Finance Lijjat borrows funds/takes loans mainly from 3 banks: • • • Banks of India. The minimum a member should roll is 5 Kgs.mbaguys. Even the packaging is done on their own.11/. As a main motive behind the building up of this institution is to provide as much employment as they can for women.depending on the weight.

90 is the minimum paid to each member. 18/. Vanai is paid on daily basis when they deliver the rolled papads and clear the quality tests.Contributed by members of www. 250 gms.00 30.50 24.00 232. 11.5 .  Prices of Papad Available Dealer Price List General Category 100 gms. 200 gms.5 Kgs 12.per kg.mbaguys. They are entitled for the vanai only when they attend the office and perform their respective duties.00 26.00 95. They are not supposed to roll papads as according to the norms only the person who has previously rolled papads can become the vice-president or the president or the president. The President and the vice-president are paid a fixed amount of vanai. 1 kg. 500 gms.00 Special category 113. 200 gms. 250 gms.00 58. 1 kg vanai is Rs.00 100 gms.mbaguys.00 277.00 49.00 21. So this means that Rs. 2.00 Project Source URL http://www. This norm is applicable for the secretary and treasurer also. If on a particular day they remain absent then the vanai is not paid to them. 500 gms.

00 25.00 Special Category 1 .00 36.5 Kgs.00 1 kg.00 29. 114.Contributed by members of www.00  Export Prices Export Prices ranges from Rs.24/- Project Source URL http://www.00 69. 200 Consumer price List 100 gms. 278.00 31.00 2. 250 gms.00 2.00 100 gms.To Rs. 500 gms.mbaguys.00 59.21/. 135. 15.mbaguys. 250 gms. 200 gms. 332. 500 gms. 13.5 Kgs.

marketing. equally well executed by his followers. and took its turnover from Rs 6. involving over 40. Lijjat’s experiment in the realm of corporate governance stands out as one of a kind.000 women on its revolutionary march. a quality product that these women had the expertise to make. finally. are in no way superior to sister-members.Contributed by members of . the phenomenal growth and expansion og Lijjat into a muti-product company has opened up new employment opportunities for the sister-members. late Chhaganlal Karamshi parekh and Damodar. Lijjat is today guided by separate divisions of advertising.196 in the first year to Rs 300 crore in the next four decades. But more than its much-hyped sales figure.mbaguys. a work environment which is not competition-driven and mechanized but based on pure labour and love for organization and its people. is fanciful at any a well thought-out Gandhian business strategy. eligible candidates are chose and trained to work in its modern Polypropylene. sales promotion and exports.52 crore and ad-spend stood at Rs 2. advertising and exports departments. Besides. Employees. and are therefore expected to behave accordingly.55 crore for 2000-2001. It pays Rs 11.mbaguys. numbering about SECTIO 7 Challenges and potential The story of seven illiterate and poor women who borrowed Rs 80 to start a Papad business. Transfer of finished products centralized marketing offices from different branches was worth Rs 113. Sasa detergent & cake and printing divisions. Lijjat’s Ranchi branch was established in ovember 1997 bifurcating it from the only branch in Bihar at Muzaffarpur. who worked tirelessly from behind the scene.000 per month as rent for the building Project Source URL http://www. Their vision was clear – an exclusive women’s organization run and managed by them. All the centers are’ autonomous. There is greater coordination between branch office (different production and markeing units) and centralized marking. and. profits remain with the respective branches and are normally used to augment the business after a due share is distributed as extra vanai charge to sister-members.000 including the chairperson herself.

mbaguys. “As an experiment. A “trekker” (thirteen-sister passenger vehicle has also been purchased for the conveyance of sister-members from home to the Lijjat office and back. These women also work from their homes. where help from other family members not only adds up to the income but makes the work more enjoyable. Project Source URL http://www.” says elderly Gandhian. Bombay Sarvodaya Mandal. the Mumbai and thane branch distributed gold coins of five grams to each of the . At the workplace they are selfrespecting.500 as extra according to Lijjat sources. Vanai charge on Deepawali this which houses’ its office and workshop. TK Sumaiya.65 million in ovember 2002.500 as extra vanai charge to its sister-members. Lijjat has insulated its sister-members from joblessness. besides the strength of womanhood. This branch has 165 sister-members and sold Papad worth Rs 0. paid RS 2. paid Rs 2. according to Lijjat sources.mbaguys. More importantly. Similarly.Contributed by members of www. The branch averages around their rupees as gross profit and one rupee as net profit from per Kilogram of Papad. The Lijjat women offer an alternative to the highly competitive and stressful work environment defined and dominated by men in which a woman competes with a man more as a man than a woman. Lijjat is also an experiment in the restoration of the essence of womanhood. The Muzaffarpur branch.056 sister-members a couple of months ago. hard-working and sisterly to one another.

mbaguys. Member-sisters donated money from their daily vanai (wage). including Rs 1 million from the central office. After the 2001 Gujarat earthquake. plantation drives and even making donations to Government bodies. The institution provided the finance and supervised the work of construction of fifty-eight houses for the people of the village. In 1999. Lijjat undertook the rehabilitation Of chincholi (Jogan).net/t603/ .money fore spread of primary education.Contributed by members of www. the Lijjat member-sisters have undertaken social service activities such as distributing nutritious food for poor children. as an outstanding woman in the field of social Contribution to social service On several occasions. organizing heath camps. pawar. Lijjat President. Project Source URL http://www.8 million. donating money for conducting community marriage. Lijjat built forty houses for the rehabilitation of the people of Bhujpur (Bhachau) in Kutch District.mbaguys. all the branches of Lijjat gave a total donation of more than Rs 4. the earthquake affected village in the Latur district of Maharashtra. Rukminiben B. undertaking blood donation drive. the Mumbai City felicitated Smt. instituting prize.

the need for information dissemination and communication among member sisters at various branches has increased.three persons are arrested in this connection in Bihar. and so can the quality of final product. the handling of accounts.Contributed by members of www. Project Source URL http://www. annual general meeting. This is the reason that Lijjat does not export in monsoons. along with all the other products of Lijjat was exempt from sales tax. In the monthly SECTIO 8 PROBLEMS FACED BY LIJJAT PAPAD &THEIR SOLUTIO o The papads are prepared in different parts of India. Shri Mahila Griha Udyog Lijjat Papad is Libable to pay the Sales Tax for their Sasa Detergent Powder. and everyday problems to assure a better work environment. In June 2001. Therefore. and to discuss issues such as quality maintenance. 2) The rolled papads need to be dried for a certain number of hours. where the final products are tested and coded. 1) Previously Detergent. which does not include detergent in the PCPI (Processed Cereals and Pulses Industties) list of products. but the threat exists in the global market also. Therefore in the monsoon when it rains it is difficult to dry the papads outdoor. the quality of the water used usually . and All-India convention of branches are held to keep the members aware of organization activities and strategies. The monthly regional meeting. production rates. the quality issue and modifications are also discussed. Recently the Government has passed a new provision. egotiation is currently being carried out with government to exempt this product from Sales tax as well. This now has to be indoors. To prevent any inconsistencies. With increasing business and other advances. Lijjat has its own laboratory in Mumbai. Currently there is a problem of fake Lijjat papads being introduced in the market. The ‘bhaginis’ stay in small houses and space is a constraint hence fewer papads are produced during the monsoon season.mbaguys. This entire process in done in the ‘bhagini’s’ homes.

We feel one of the reasons for this problem is lack of advertising. 3) Another problem expressed by them is competition in sales of their detergents (Sasa) from established brands like irma. This will lead to higher production which can be exported.Contributed by members of www. They need to increase their investment in advertising through electronic media and print media. with kerosene lamps where the bhaginis can come and dry their papads.mbaguys. 4) Lijjat currently exports through merchant exporters and does not involve itself in direct exporting. We feel they can save on the margin that the merchant exporters make. as stated earlier. by appointing their own distributors in the main countries and this will enable them to reduce cost and increase profit margin. They rely mainly on word of word of mouth which has been successful for their papads but has not worked so well for their other products like detergents. Also. currently they don’t use direct selling to sell their products. which will create greater awareness about their detergents and increase sales. We feel they should adopt direct selling as it involves low cost and it will definitely widen their reach and create more awareness about their products. Our suggestion is to hire an additional space during monsoon a central position near the depots. 60b Lkhs on .mbaguys. Project Source URL http://www. Lijjat spends only The solution adopted by Lijjat is to provide extra money to the bhaginis during monsoons to purchase kerosene lamps to enable faster drying of papads.2% of their total turnover equal to Rs.

o Lijjat has emerged as an innovative organization in which women from religion. o Lijjat encourages its members to give to others whatever they can. Lijjat exemplifies a remarkable way of making leader out of ordinary women. open interaction. The more enterprising responsible and experienced member sisters climb the administrative ladder. o Transparency in operations and nonhierarchical structure has helped in establishing organizational accountability among member sisters.Contributed by members of Factors for Success o The merging of ownership with membership has encouraged uniform and sustained organizational growth. The pledge and all-religion prayer also encourage cooperative work among women. irrespective of caste or religion. but gives donations. o The consistent quality of the product has been a primary factor in establishing and maintaining Lijjat’s brand in the market for the last four decades. caste. or class can become members. and consensual distribution of tasks reduce the possibility of disputes resulting from communication gaps and help work to go smoothly. o Lijjat provides economic opportunities through a domestic activity. o Calling the members “sisters” creates an informal work environment. Frequent meetings. instead of expecting help from others. Once involved in this activity. the women acquire confidence and status as they make money in a respectable manner.mbaguys. Lijjat does not accept . Project Source URL http://www. o The Sarvodaya philosophy proved vital in forming Lijjat’s foundation. self-esteem and pride in their own organization. which enhances members.

Tiffin boxes and matchsticks. Among similar ventures which came a cropper are incense sticks.mbaguys. o one would become a millionaire by setting up another . Khakhra. which is their justified right. along Lijjat’s line. the essential message that Lijjat’s success conveys has definitely fired the imagination of women and rural folks. The ladies are brimming with confidence. the pride and joy of fulfillment. Lijjat is an institution which has stood the trial of time and tribulation and has achieved success because when basic management principles and uncompromising quality consciousness are applied in conjunction with sound business principles. detergent powder and cake. But most promising among them is the chapatti division with six branches in Mumbai. In the process Lijjat provides them the platform for improving their status in the society. wheat filthier are on Lijjat’s menu but Papad with a sales figure of Rs 288 crore remains at the top. the women come in to work at around seven in the morning and make Project Source URL http://www. As a business house. Here. The institution thus paves the way for women to become self-reliant and selfconfident. there can be only one way for the ladies of the Lijjat-a brighter and happier tomorrow.Contributed by members of www.mbaguys. small or big. Lijjat makes almost equal money for its entire people and makes just enough money. If this aspect of Lijjat’s operations is not very good news for machine and money-driven corporate owned by tycoons. There is hardly any GO or voluntary organization nowadays which does not try create employment and funds. Lijjat itself has been trying to rewrite its own success with another product with varying degree of success. leather bags. locally manufactured and marketed eatables are catching on. bakery products. sticking to its core values the past forty years. In many parts of Maharashtra and Gujarat. black pepeer powder. Grounded spices. SECTIO 9 Conclusion The most interesting lesson managers can pick up from Shri Mahila Grihan Udyog Lijjat Papad.

etc. Project Source URL http://www. and the catering in Mumbai includes some big names from the hotel and catering industry.mbaguys. These centers also procure orders from hotels. It is made with love and chapatti as they are prepared in homes. are available at retail shops in Mumbai. office canteens. little time is available to most people in metros like Mumbai to cook their own food. ext time there is Lijjat Papad on the table. a leading social worker engaged in tribal welfare activities in the Gumla district of Jharkhand. ‘As the pace of life increases.Contributed by members of www. There are good prospects for women forming small groups and catering to the local demand for homemade chapatti or similar products.” says Ashok Bhagat. Packed Lijjat chapatti. just like from their mama’s kitchen. four for Rs five. you sure can see a Chandrasekhar or Suja’s dimpled fingers deftly roll out the crisp .mbaguys.

Contributed by members of Bibliography World Wide Web Information from the Lijjat prospectus Visited Lijjat’s office.mbaguys.mbaguys.lijjat. Project Source URL .

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