Project Submitted to the Institute of Agribusiness Management in partial fulfillment of the requirements for the award of the Degree of Master of Business Administration (Agribusiness) 2008-09



Declaration by Student I hereby declare that the project entitled “Evolution of Warana – Beyond The Lucky Gold Star Group” submitted for the M.B.A. (Agribusiness) Degree is my original work and the dissertation has not formed the basis for the award of any degree, associate ship, fellowship or any other similar titles.

Place: Date:

Vishwesh Shashikant Dange



CERTIFICATE This is to certify that the project entitled “Evolution of Warana – Beyond The Lucky Gold Star Group” is the bonafide research work carried out by Dange Vishwesh Shashikant student of M.B.A.(Agribusiness) during the year 2008 -2009, in partial fulfillment of the requirements for the award of the Degree of Master of Business Administration(Agribusiness) under my guidance and supervision and that the project has not formed the basis for the award previously of any degree, diploma, associateship, fellowship or any other similar title.

Place: Date: Approved Dean IABM

Dr. Ruchira Shukla




It is indeed a pleasure to acknowledge the contribution of all those who have helped me during the project work. It was a most rewarding experience to work in “WARANA BAZAAR and WARANA BANK”. I am very thankful to our dean Dr. R. R. Shah and Prof Samar K. Datta, Chairman, Center for Management in Agriculture, Indian Institute of Management, Ahmedabad for giving me this opportunity. I am deeply indebted to Dr. Ruchira Shukla as a Project Guide and Dr. Alpesh Leua whose valuable guidance helped me a lot at all stages of my project. I would also take the opportunity to express my sincere thanks to the management of Warana Bazaar and Warana Bank and specially Mr. Sharad A. Mahajan (General Manager, Warana Bazar), Mr. Jayant Sopal (Purchase Manager, Warana Bazar), Mr. Mahesh Auti (Sales Manager, Warana Bazar), Mr. T. B. Chavan (Accounts Manager, Warana Bazar), Mr. T. M. Dhere (Labour Officer, Warana Bazar) and Mr. S. K. Shinde (Asst. General Manager, Admin., Warana Bank) for their kind cooperation throughout my study. Last but not the least I would also like to express my deep gratitude towards all the faculty members, my parents, my beloved friends and all those for their generous help during this study directly or indirectly. Place: Date: Vishwesh Shashikant Dange


I Dedicate this Project to my Beloved Parents and Friends.
Whose have love a and blessings of



inspiration to me. I owe them for what I am today and even hope to be in future. I will never forget the help, motivation,


No. Profile of Warana Bank The Project Research Methodology Data Presentation and Analysis Findings. 1) 2) 3) 4) Particulars Executive Summary Introduction to Warana Co-operative Complex Members’ Activities in Warana Co-op. Profile of Co-operative Banks in Indian banking Industry d. Recommendations and Conclusion Bibliography Appendix Page No. Profile of Warana Bazaar c. Complex Industry and Organization Profile a. Profile of Co-operative Consumer Stores in Indian Retail Industry b. 10 12 15 18 19 21 38 41 50 53 56 103 108 109 5) 6) 7) 8) 9) 10) 7|Page . Vishwesh CONTENTS Sr.support and inspiration given by them.

23. 23 27 28 30 31 33 37 44 46 57 57 59 59 61 62 63 65 66 67 68 69 70 96 97 98 99 100 101 102 8|Page . 1. 9. 14. 25. 12.LIST OF TABLES Table No. 22. 16. 5. 28. 7. 19. 4. 8. 18. 10. 13. 3. 6. Title Development of Warana Bazaar Board of Directors Area of Operation Activities for Members Benefits to Staff besides salary Consultancy to Bazaars Franchisees of Warana Bazaar General Information of Warana Bank Distribution of Profits by Warana Bank Manpower involvement in Warana Bazaar Members of Warana Bazaar Members Share Capital in Warana Bazaar Total share Capital of Warana Bazaar Working Results of Warana Bazaar Financial Assistance from government Total Sales of Warana Bazaar Total Income of Warana Bazaar Performance Highlights of Warana Bank Loans Sanctioned by Warana Bank Profit Earned by Warana Bank Working Capital requirement of Warana Bank Deposits Frequency Table for Population Frequency Table for Age Group Qualification of Respondents Monthly Expenses Benefits from Warana Bazaar Display of Goods Product Mix Satisfaction Page No. 21. 24. 27. 29. 11. 2. 15. 20. 17. 26.

3. Title Organizational Chart Members of Warana Bazaar Total share Capital of Warana Bazaar Total Sales of Warana Bazaar Total Income of Warana Bazaar Loans Sanctioned by Warana Bank Profit Earned by Warana Bank Working Capital requirement of Warana Bank Deposits Frequency Table for Population Frequency Table for Age Group Qualification of Respondents Monthly purchases from Warana Bazaar Benefits perceived from Warana Bazaar Proper Display of Goods Product Mix Satisfaction Page No. 2. 12. 8. 16.LIST OF FIGURES Figure No. 15. 4. 1. 25 58 60 64 65 67 68 69 70 96 97 98 99 100 101 102 9|Page . 7. 10. 14. 13. 9. 11. 6. 5.

so we had to start a plastic business. no company could supply us with plastic caps of adequate quality for cream jars. is encapsulated in the following citation in the words of Koo Cha-Kyung. Organization and Management’1. Paul Milgrom and John Roberts. enunciate a classic case of South Korea’s giant Lucky Goldstar group to depict the extent to which firms can profitably take over the operations of their suppliers and industrial customers (alternatively called as backward and forward linkages) and also simultaneously expand their activity spectrum. profitably engaged in a wide range of activities. The ultimate success story of Lucky Goldstar chaebol.EXECUTIVE SUMMARY The project entitled EVOLUTION OF WARANA “BEYOND THE LUCKY GOLD STAR GROUP” is the project done on the “WARANA BAZAAR” and “WARANA BANK” which are the part of the well recognized “Warana Co-operative Complex” which is located in Warananagar. Plastic caps alone were 10 | P a g e . in their celebrated book titled ‘Economics. bank. the son of the Lucky Goldstar founder: “My father and I started a cosmetic cream factory in the late 1940s. The core objective of this endeavour is to study the development of these two organizations i.e. the Warana Bazaar and the Warana Bank starting from the Warana Co-operative Sugar Factory and which has now departed from the sugar factory to other organizations like the dairy. Kolhapur. At that time. bazaar and the poultry which is beyond the development of South Korea’s giant Lucky Goldstar group.

an insurance company was started. satellite telecommunications. 543). SWOT analysis of Warana Bazaar and Warana Bank i.not sufficient to run the plastic-molding plant. A customer response towards the Warana Bazaar is studied to know the level of satisfaction of customers. fiber optic telecommunications and eventually. toothbrushes and soapboxes. the strengths.e. pp. opportunities and threats are carried out also showing their future perspectives. Our chemical business will continue to expand toward fin chemical and genetic engineering while the electronics business will grow in the direction of semiconductors manufacturing. The competitive advantages of both these organizations are identified over their rivals which help these organizations in generating higher margins by increasing sales and to retain their customers. energy and electronics. ibid. This natural step-by step evolution through related businesses resulted in Lucky Goldstar group as we see it today. we will base our growth primarily on chemicals. (Milgrom & Roberts. in starting up of Warana Bazaar and Warana Bank and its progress. so we added combs. 11 | P a g e .e. For the future. Tatyasaheb Kore and his associates who were the establishment pillars of Warana Co-operative Complex. Thus. which in turn led us to manufacture electrical and electronics products and telecommunications equipment. weaknesses. The plastic business also took us into oil refining which needed a tanker-shipping company. Also the objective of the study is to study the role of leadership i. the role of Shri. The oil-refining company alone was paying an insurance premium amounting to more than half the total revenue of the largest insurance company in Korea. This plastic business also led us to manufacture electric fan blades and telephone cases.

Maharashtra. Sixty years back Warana was a barren land and has emerged on the world map as a model for all-round development of the region through continuous efforts of all concerned under the able leadership of Late Sahakarmaharshi Shri.INTRODUCTION TO WARANA CO-OPERATIVE COMPLEX Warana is a well-developed rural area located 30 kilometers northwest of the city of Kolhapur. The main economic activity is sugar cane growing and processing. 12 | P a g e . Shree Warana Co-operative sugar factory was founded in the year 1956. In other words. WARANANAGAR is derived from the river WARANA flowing from Kolhapur and Sangli districts in western Maharashtra. a man with great vision and commitment towards the upliftment of the poor section of society.000-sq. Much of Warana’s success is due to the presence of a strong co-operative movement. It has proved to be a nucleus for the multi-faceted development of the region and for bringing about the upliftment of the masses. Warana Co-operative sugar factory has best proved many times among all Co-operative sugar factories in the country. in one of the richest states of India. kilometer area covered by the co-operative. we can say that without knowing the definition of marketing (creation and delivery of standard of living) Late Sahakarmaharshi Tatyasaheb Kore has done such a Herculean task within a short span of 60 years.000 farmers live in 100 villages spread in the 25. The name. the Warana Group of Cooperatives (WGC). About 50. Tatyasaheb Kore.

WARANA is eminently. Pharmacy College and Cultural units like Warana children’s orchestra and social units like Shree Warana Bhagini Mandal. Lijjat Papad Centre etc. 13 | P a g e . Warana Mahila Credit Society. A successful name in the operation flood. The beauty of this land makes music which can penetrate and lilt the most inaudible ears and a riot of natural colours to the most unaccustomed eyes and it can even make even the unlettered to construct the duets. Co-operative bank. which flows parallel to WARANA. There is no name parallel to WARANA except perhaps the WARANA RIVER.Warana Co-operative Sugar factory is the mother institute of all the industrial and Co-operative units like Warana dairy. WARANA• • • A successful name in the cooperative movement. Engineering College. ITI. The name WARANA sounds suitable wherever there is a mention of co-operative movement. The green valley with its smiling face welcomes the whole nation for its exemplary services. "Love at first Sight" can be rightly applied to this land of integrated rural development. The uninitiated may be amazed by the way barren land has been converted into a green valley. a unique name that stands as forerunner in the cooperative movement in India. Co-operative bazaar as well as educational units like School. The activities in this valley can enliven the most passive. Military School. College. A successful name in the agricultural field. Warana culture has set an example and is making wonders today.

Besides poverty the sad demise of his parents might have crunched him a great deal. Tatyasaheb Kore who did a magnificent miracle in the land of Warana. the whole barren valley that was filled with dacoits and turned it into a prosperous and polite land.• • • • • A successful name in the sugar lobby. to do the best. Who was this incredible man? Who was this motivator? Who was this sprint? He was one and only one Late Vishwanath Kore alias Tatyasaheb Kore. With an undaunted strong belief along with his team when he struck. industries. born on17th October 1914. By entering the local 14 | P a g e . A successful name in the banking field. An incredible man set on an arduous mission with a singular dream of achieving all these incredible things. he was the son of a farmer in a small village Kodoli. and A successful name by itself! All this did not happen by chance or through any sort of magic. Young Vishwanath Kore had to overcome several hurdles due to the poverty of his family. The man who sacrificed his joys. His words were Godly words to his followers. happiness and stood bold. This man like a sprint achieved the success in all the fields. But young Vishwanath did not flinch an inch. Being the eldest in his family he took all the responsibilities on his shoulder and through his hard work he brought up the whole family through difficult times. A successful name in the consumer services. A successful name in the education field.

1st Former Dy. in fait is the backbone of the complex. The success of this sugar factory doubled his enthusiasm and lead to the overall development of Warana Complex.village co-operative society in 1935 he started his social service. Chavan. This shocking incident made him to set up a modern co-operative sugar factory in the barren land WARANA situated next to Kodoli village. He plunged into a severe action when an unprecedented depression in 1951 literally ruined the farmers of this area and they had to burn out their sugar canes rather than making jaggery and face the prospect of selling it at throw away prices. The successful establishment of co-operative sugar factory in 1959 has completely revolutionized the life of the people in Warana co-operative complex. He actively participated in Quit India Movement of 1942. Due to his social services he was unanimously elected as President of Kodoli Municipality in 1940. Members’ Activities in Warana Co-Operative Complex: Members’ involvement and empowerment in Warana Cooperative Complex: Warana Cooperative Complex which has carved a niche in the global cooperative landscape is mainly attributed to the ceaseless efforts of great architect and visionary Late Shri. He was actively associated with underground movement of Late "Yashwantrao. Prime Minister of India. The co-operative sugar factory. Today Warananagar is a place of many facets and fragrances and its success story started unfolding with every sunrise.B. Warana is making stupendous growth and is expected to make miracles in the days to come. Tatyasaheb Kore and the involvement of farmer members that has led to their empowerment. The 15 | P a g e .

access to advanced agricultural technological information through “Warana Wired Village Project”. field visits. Economic and social services that persuade members to participate are as: 1.democratic setup wherein the members actively participate. Members’ active involvement in extension activities. workshops. Small farmers and landless people are made to involve in the dairy and allied activities of Warana dairy helping to attain self sufficiency. demonstrations. give their valuable suggestions. provision of agricultural inputs at subsidized rates. redressal of economic grievances through provision of financial facility at reasonable terms has attracted the farmer members to be loyal to their institution in terms of supply of cane. economic participation and democratic involvement. Affordable and modern irrigation schemes. the first of its kind in Asia. 3. training facilities. production of quality milk is laudable. constant member initiatives like seminars. 16 | P a g e . 2. the sub committees of the board representing the particular village and members aspirations coupled with the need based services offered by all the co-operatives institutions in the complex is the main factor for the member empowerment. availing facilities. Better rate of return to the members’ products. etc has created an environment for the members to take farm activities with enthusiasm.

technical education. forwarding suggestions and member related activities. Provision of social services like medical and education facilities to members’ children at concessional rates. festival rebates added with courteous services at Warana Bazaar has benefited the consumer members to enhance the sense of belongingness and participation in purchasing. village drinking water facility. gymnastic. 5. employment towards women folk. aid to temples. Provision of wide variety of choices of consumer products at reasonable prices much below the MRP including member attractive deposit schemes. fostering children’s orchestra.4. access to library. gobar gas plants. sales promotion schemes and member friendly activities like haldi-kumkum ceremony. involving women in decision making and promoting the various income generating activities to both men and women members have made Warana Co-operative Complex a land of many facets for member participation and member employment. community marriage system. constructing community halls in backward areas. 17 | P a g e .

Chapter I Industry and Organization Profile 18 | P a g e .

In India consumer cooperatives had confined their retail business to small shops till 1965. certificates. Thereafter. of getting control over prices. not available from traditional stores. Consumer cooperatives are retail firms owned by their respective customer members. supermarkets and departmental stores have come up in different parts of the country with governmental assistance. But in the wake of liberalization and opening up of modern stores by private groups in the urban areas. there has been a lot of consolidation and concentration in the field of retailing so much so that in all the developed countries the top five retailers control more than 60% of the food retailing. 19 | P a g e . The consumer cooperatives have been playing an important role in the distribution of various items of essential consumer goods both in the urban as well as rural areas.1. of saving money by substituting their own labour or getting access to healthful.1 Profile of Co-operatives in Indian Retail Industry: Retailing is the largest industry of the world. But. the business of consumer cooperatives have been adversely affected due to poor infrastructure and absence of professional and modern systems of management. environmentally safe plots. manage operations and share profits or savings that accrue. elect officers. Consumer cooperatives came into existence with the purpose of operating stores as well or better than traditional retailers. invest in the cooperative. In such cooperative arrangements. receive stock. During the last five years. groups of consumers. Cooperatives have also been contributing significantly to retail businesses in the country. by and large the credibility of institution still exists on account of quality and good measurement standards where the cooperatives should not allow a chance to others and make all efforts to retain this faith with the members.

The one thing in common amongst these estimates is that the Indian organized retailing industry will be very big in 2010. Bigger players are in a position to take advantage of their sizes in dealing with the manufacturers. feet and though a large employer. Vision 2010: The past 2-3 years have seen a number of developments in the retailing business in India. Retailing provides jobs to almost 15 percent of employable Indian adults and it is perhaps the largest contributor to India’s GDP. But the flip side of the coin is. the industry is much unorganized. Despite a slowdown in the economy customer queues at the stores are not decreasing.The retail market size of India is estimated to be around $180 billion. But how much and in what direction are the questions that need to be evaluated. fragmented and with a rural bias. 20 | P a g e . Various agencies have made different estimates of the size of organized market in 2010. Retail sector is bound to grow in the coming years. Piramals and Reliance has increased the capital availability in the market. The status of the industry will depend a lot on external factors like Government regulations and real estate prices. besides activities of the retailers and demands of the customers. the average size of each of the retail outlets in India is only 50 sq. Tatas. The entry of corporate houses like RPG.

1. It has proved to be a successful departmental store in the country. The success of Warana Bazaar has inspired the emergence of many more cooperative stores in different parts of Maharashtra.Warana Bazaar: Warana Bazaar. Goa and other States in the country. Board of Directors: 23 First Consumer Co-op. WARANA BAZAR. Warana Bazaar has been accepted as a model store by all concerned. Stores in Rural India: . LTD. Tal: Panhala Dist: Kolhapur Registration No: Members: KPR/CON/28 Dated 07/08/1974. 10110 Area of Operation: 107 villages in Kolhapur and Sangli districts. WARANANAGAR. In the era of globalized economy too.2 Company Profile: SHREE WARANA VIBHAG SAHAKARI GRAHAK MANDAL. the first consumer Co-operative store was founded and registered in the year 1976 and started functioning on 2nd April 1978. Warana Bazaar is 21 | P a g e .

Established and registered on August 7th 1976 and the Cooperative Developmental Store.F. 82 cores.C. Daily turnover of Warana bazaar is more than Rs. Ltd. 22 | P a g e . After that they resolved to start the first departmental store of the country.O.L. The people had to often rush to Kolhapur or Sangli to obtain their daily needs and this resulted in waste of time. Sugar factory was giving a serious thought to the idea of starting a consumer store at Warananagar for meeting the daily requirements under one roof at fair and reasonable price. Then the ILO experts from Canada and Philippines visited Warananagar to examine the location and in depth study of the area. Consultancy and promotional cell of N. Warana Bazaar.C. New Delhi and I. Warana co-operative complex has a chain of interlinked units facilitated for the people in its command area to earn livelihood. and energy. Warana Bazaar started on April 2nd 1978 with the assistance of the consultancy and promotional cell if the N. Shree Warana Vibhag Sahakari Grahak Mandal Ltd. The Warana cooperative sugar factory sponsored for the consumers store. the first of its kind in rural India.F.C.achieving heights of success with yearly turnover of Rs. shouldered by 555 employees and Member’s strength of 10110 out of them 78% are women members which is the special feature of this unit. experts were searching for some location in rural part of the country for starting Departmental Cooperative store and successfully operate it. Ltd. Warana Bazaar has two big department stores and 50 branches.C. At that time there was risk involved in such a venture. New Delhi. money. 30 Lakhs and the society is in surplus since beginning.

To make available all type of goods under one roof. 2. 3rd Principle: Member Economic Participation.1 24. Training and Information. 7th Principle: Concern for Community.0 10. 5th Principle: Education. 2nd Principle: Democratic Member Control.Reformulated Principles of Cooperation (Accepted By I. Give information about food adulterations to the customers.04 23 | P a g e . To supply quality goods at fair and reasonable price to the customers. 5. 6th Principle: Cooperation among Cooperatives.4 6. Objectives of Warana Bazaar: 1.4 27. 4th Principle: Autonomy and Independence.20 5. To supply fresh and clean goods to the customers. 3.A): • • • • • • • 1st Principle: Voluntary and Open Membership.C. To supply goods at same rate to all customers. TABLE NO: 1 Development of Warana Bazaar Sr. 4. No 1 2 3 4 5 6 7 Year 1979-1980 1984-1985 1990-1991 1994-1995 1999-2000 2000-2001 2001-2002 Members 1471 3068 4863 8656 9776 9776 9779 Sales in Lakhs 147 470 1365 2528 4155 4413 4636 Growth % -26.

Department store who has employed 50% women in staff. 80 crores.09 Source: Annual Report Features of Warana Bazaar: 1.8 9 10 11 12 2002-2003 2004-2005 2005-2006 2006-2007 2007-2008 9779 9795 9987 10103 10110 4721 6144 6886 7999 8167 1.30 12. consultancy for different bazaars. 7. 3. First store which started training centre i. The first Cooperative Department Store in Rural India. They always try to purchase the pure and best goods from the reliable parties or direct from manufactures and producers by keeping good relation with them. 24 | P a g e . selling area on the first floor.00 2. 5. 2.00 16.e. 8. Yearly turnover above Rs. Administration of Warana Bazaar: The Administration of Warana Bazaar is an example of systematic administration which one can apply. Audit class “A” since beginning. 6. ft. Ranks third in sales turnover in India. They visit to all branches and departmental stores and check the financial status of the branches whether it is in profit or loss and helps to solve the problems regarding the branch. Chairman and Directors of Warana Bazaar personally do hard work for the organization. Bazaar having 10000 sq.84 20. Women participation more than 77% of the total members. 4.

Organization Chart: Figure: 1 General Body Board of Directors Chairman Vice Chairman General Manager Accounts Manager Purchase Manager Sales Manager Chief Auditor Chief Accountan Purchase Assistant Sales Superviso Audit Staff Branch Accountan Purchase Clerks Sales Staff Clerks Section In-charge Assistant and helpers 25 | P a g e .

1. Chairman 2. 26 | P a g e . General Manager The board meeting is arranged every year: • • • • • • • Board of Directors meeting – Purchasing committee meeting Branch committee and managers meeting Employees committee meeting Audit committee meeting Recovery Committee meeting Franchisee committee meeting 12 43 12 12 12 12 13 Board of directors meeting is arranged for discussing newer ideas and problems of the store. Records of meetings are maintained regularly. Employees representative 5. Directors • • Male Female 05 09 02 01 01 01 4.Board of Directors: The board of directors handles the management carefully. Vice Chairman 3. The board has constituted sub committees to look after day to day management of stores.

Lilavati D. Utale Mr. Shete Mr. Sharada B. Putalabai P. Mahajan Mr. Mulik Mrs. Dayanand S. Mahapure Mrs. Babutai R. Sajakka P. Ganpati S. Vishwanath T. Salunkhe Mr.Board of Directors: TABLE NO: 2 Board of Directors 2002-03 to 2007-08 Name Smt. Subhash A. Nemgonda A. Manager. Jadhav Mr. Kore Mr. Kulkarni Mrs. Kore Mr. Ex. Vijaysinha G. Kesarkar Designation Chairperson Vice Chairperson Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Gen. Vijay S. Shila R. Gaikwad Mrs. Ashwini A. Chougule Mr. Patil Smt. Shobhatai V. Patil Mrs. Desai Mr. Shid Mrs. Patil Mrs. Patil Mrs. Powar Mr. Officio Secretary Consultant 27 | P a g e . Suvarnadevi L. Laxman T. Sharad A. Jayashri U. Rajendra V.

it is trying for further expansion in different villages. ii. Reasons for success: i. Success will not be spelt without ‘U’ and “U” means the secret of our success.e. Kolhapur and Sangli and covers almost 150 villages surrounding them. Availing the benefits of the no restriction or no barriers for the expansion. Enlightened leadership--. District Kolhapur Area Of Operation Tahsil Panhala Hatkanangale Karveer Shirol Gadhinglaj Shahuwadi Bhudargad Ajara Shirala Walwa Miraj Total No of Villages 22 31 6 3 1 3 1 2 7 27 4 107 2. Sangli The WARANA BAZAAR operates successfully in the two districts of Maharashtra state i. Employees depositors. He has given birth to this consumer’s co-operative store.Late Sahakarmaharshi Shri Tatyasaheb Kore was a great visionary. Hon. customers. ‘U’ means the stock holders. Suppliers. and they cause the success. Vinayraoji Kore and Chairperson Smt. He has put all efforts to see it a success. Minister Shri. Shobhatai Kore are following the same path. 28 | P a g e . well wishers etc. No 1.Area of Operation: TABLE NO: 3 Sr.

No Activities for Members Description 29 | P a g e . No political interference but “one for all & all for one” working culture. • • • • • • • • • Professional management:Per man per day sale . Dedicated and devoted staff. Percentage of expenses on employees should be less than 55 % of Gross Profit.to avoid over staffing Per square feet sale . In house consumer co-operative training centre approved by Shivaji University. vi. Kolhapur and NABARD.iii.Space utilization Stock turn Rate-Should be more than 15 times Break even point should be achieved by each unit. Purchasing from the place of origin / manufacturer Purchase pilot system (for minimum inventory) Transparency in Business Deposits from members / non members. Activities for Members: TABLE NO: 4 Sr. v. Real and effective use of ICA co-operative 7 principles. iv.

Purchase Rebate to customers 0.5% “Pak kala ”competition for lady members “Ashi bhesal Ashi chalakhi. 10% cash rebate coupons for use throughout the year. Total 26% on their investment in shares in the society. 30 | P a g e . (for a class members) Haldi-Kumkum Ceremony for lady members at the time of Makar Sankrant. 8% rebate on the purchase of festival goods at the time of Gudhi Padva.Ashi Banava Banavi ”.Exhibition Activities for Customers: a) Daily welcome by staff at entrance.1 2 3 4 5 6 7 8% rebate on the purchase of festival goods at the time of Dipawali. b) Book fare. c) Discount goods d) Festival goods e) Goods at cheaper rates f) Own branded goods g) Active pricing policy.

No 1 2 3 4 5 Description Provident Fund Bonus Incentive House Rent Allowance Pension Scheme Total % 12. Performance incentives. STD/ISD/PCO Booth at Warananagar & Vadgaon. c.0 59.5 • • • • • • • • • • 34 days leave.Benefits to staff besides salary: TABLE NO: 5 Benefits to staff Sr. Organization of demonstration of various types of goods. Tea 2 times per day. Workers Welfare Trust registered under the trust act.0 12. On the job training for the trainees. Part time job provided for the college students. Additional Activities in Warana Bazaar: a. b.0 05.0 25. Uniform. 3 months maternity leave. Xerox Services at Warananagar & Vadgaon. Mediclaim & personal accident insurance policy for all staff. Gratuity Trust registered under the trust act. 31 | P a g e . d.5 05. Barcode system.

h. Organization of seminar on weights & measurement precautions. Movement needs trained Staff. Soya. j. In order to get trained staff the bazaar has started a training center under the name “Vilasrao Tatyasaheb Kore Consumers Co-op. k. Consumers meeting every year. Food Testing Laboratory. Yoga & Pranayam shibir. Implementation of different schemes for sales promotion. Employees who are already in service with various Bazaars in Maharashtra are eligible for admission in the above training programme. and Groundnut). NABARD has approved this Programme. Shivaji University. Training Center” in the year 1996. Every year salesman training programme of one month duration is conducted in the center. First ten students. of every batch are absorbed in the service in Warana Bazaar. 32 | P a g e . Staff Training & Development: Consumers Co-op. Own brands in edible oil (Cotton. g. i.e. Organization of seminar on ‘Save Oil Save Nation’. f. Kolhapur has approved this programme.

Movement in the country. Goa Rayat Bazar. Gargoti Jawahar Bazar. Alibag Raigad Bazar. 11. Goa 10. Khopoli Shreeram Bazar. Valpoi. Phaltan Tarun Bharat Bazar. 16. Sangli Urban Bazar. Raigad Bazar. 3. No variation in rate as per branch. Bazaars. Fixed Price. TABLE NO: 6 1. 9. Karad Mahalaxmi Bazar. Warana Bazaar has provided consultancy & in store training to many Coop. Goa Bagayat Bazar. 2. 33 | P a g e . Karad Lonavala Bazar. 14. 7. Lonavala Bardes Bazar. Akluj Sagareshwar Bazar. 13. Goa Vedganga Bazar. If the after sales service of Warana Bazaar is better then and then only the people will prefer to purchase from Bazaar again and again. After sales service: After sales service is must in every organization. It may be the source of word of mouth publicity.Consultancy: In order to promote the consumer Co-op. Adarsh Bazar. Pen Raigad Bazar. 12. Dhule Sattari Bazar. Fixed Rate: The rate of each commodity at all branches is same and fixed. Satara Shivshankar Bazar. 17. 5. 2. 6. 8. Devrashtre Warana Bazaar Sales Policy: 1. 15. 4. It has also been the part of Warana Bazaar.

Providing services to the customers/members at the places they reside and making the material available on time essential for the day to day use without any extra charges. Best Quality: The supply of produce at cheaper rate to the customer with appropriate quality and quantity. The availability of newer products to the customers at proper time and in proper amount will help in increasing overall sales. 4. These sales promotion schemes are open during Dassera. The customers/members are made aware of the fake and spurious products and the adulterated goods in the market by conducting different awareness programmes at different places to prevent the customers from getting cheated from the other retailers in rural areas. Akshay Tritiya and marriage seasons. The material is made available in the respective branches as per the demand of customers by which the time. 6. 34 | P a g e . Gudhi Padwa (Marathi New Year). For the same purpose product knowledge is necessary. Sales Promotion Scheme: Sales promotion schemes are started to retain the existing customers and attract new customers to buy products from Warana Bazaar. 5. money and energy of the customers is saved. Diwali.3.

7. The fluctuating rates which are provided by the head office to all branches are conveyed to the customers to improve the image of Bazaar which will finally improve the overall sales. To make logistics and stock management efficient and best by which maximum sales is obtained by keeping minimum stock level. 10. Nowadays. 9. To provide proper service to the Warana Bazaar customers and the members so that they can get the feeling that the Bazaar is for their service through proper behaviour with the customers. Sales force training: Observing the increasing trend towards the mall revolution and other retail chains and the increasing investments of multinational companies in Indian rural market. newer marketing concepts and tactics are emerging which should be reached up to the staff and also applied. Proper care is taken of the goods which are not sold for longer time for the expiry date. 35 | P a g e . for that the staff in the outlets is so trained in the field of retailing so that he can withstand in the competition and face the challenges firmly. 8. So the sales force training programmes are organized.

Display: Display is a silent salesman. Cleanliness: Cleanliness is the mirror of mind. Park for children: The Colgate-Palmolive company has sponsored for the play park for children in the area of Warana Bazaar. 14. The display of goods in Warana Bazaar is done attractively so that it attracts the customers towards the product and which forces the customer to purchase it.11. 13. The medicines are made available to the customers at reasonable rates. 12. 15. Medicines Department: The timing of the medicines department is from Morning 8:00 am to Night 9:00 pm. Light Facilities: Proper arrangement for lighting is done in bazaar to highlight different products which becomes attraction for the customers which increases the overall sales. All type of medicines are made available. Cleanliness is maintained in the bazaar because it makes effect on mind of the customer which may help to improve the purchase and increase the overall sales. 36 | P a g e .

Competitors: Considering the Warana Bazaar there is no such retail chain as their competitors but the private Kirana stores act as competitors at initial stages in the areas where the branch of Warana Bazaar is established. Initially when the branches were established at Kameri and Danoli villages.) 4000 13000 10000 11000 16000 6000 12000 11500 37 | P a g e .10000/. Franchisees: Table No: 7 Sr.but now the average per day sales has reached up to Rs. 40000/-. it was seen that the per day sales of the branches was Rs. 15000/.to Rs. No 1 2 3 4 5 6 7 8 Warana Bazaar Franchisee Takawade Tung Dudgaon Rukadi Jotiba Herle Kasabe Digraj Nandre Dist: Kolhapur Dist: Sangli Dist: Sangli Dist: Kolhapur Dist: Kolhapur Dist: Kolhapur Dist: Sangli Dist: Sangli Date of Commencement 01-10-2005 03-04-2006 24-09-2006 08-10-2006 14-10-2006 24-01-2006 17-03-2007 19-04-2007 Daily Average Sales (Rs.

1. mobile banking. Since then the growth of the banking industry in India has been a continuous process. In terms of ownership. As far as the present scenario is concerned the banking industry is in a transition phase. On the other hand the Private Sector Banks in India are witnessing immense progress. The Public Sector Banks (PSBs). Scheduled banks constitute of commercial banks and co-operative banks. There has been a decrease of 20 percent in the employee strength of the private sector in the wake of 38 | P a g e . which is governed by the Banking Regulation Act of India. commercial banks can be further grouped into nationalized banks. ATMs. nonscheduled banks and scheduled banks. 1949 can be broadly classified into two major categories. During the first phase of financial reforms. On the other hand the Public Sector Banks are still facing the problem of unhappy employees. Unfortunately they are burdened with excessive Non Performing assets (NPAs). the State Bank of India and its group banks. massive manpower and lack of modern technology. there was a nationalization of 14 major banks in 1969. phone banking. regional rural banks and private sector banks (the old/ new domestic and foreign). This crucial step led to a shift from Class banking to Mass banking.3 Profile of Co-operative Banks in Indian Banking Industry: The Indian Banking industry. which are the foundation of the Indian Banking system account for more than 78 per cent of total banking industry assets. Banks in India can be categorized into non-scheduled banks and scheduled banks. Scheduled banks comprise commercial banks and the co-operative banks. They are leaders in Internet banking.

The Co operative banks in India started functioning almost 100 years ago.000 branches and 17. especially retail banking. and asset sales in the sector. Therefore. it is not hard to forecast few M&A. Indian economy is further expected to grow and be strong for quite some time-especially in its services sector. They are setup to provide easy loans to farmers or other persons to set up his business. Though the co operative movement originated in the West. with the private and foreign banks holding 18. With passing time. As far as foreign banks are concerned they are likely to succeed in India. 27 public sector banks (that is with the Government of India holding a stake). India has 88 Scheduled Commercial Banks (SCBs).000 ATMs.2% and 6. The cooperative banks in India play an important role even today in rural financing. they may be publicly listed and traded on stock exchanges) and 38 foreign banks. According to a report by ICRA Limited. takeovers. mortgages and investment services are expected to grow stronger. a rating agency.5% respectively. They have a combined network of over 53. Co operative Banks in India are registered under the Co- 39 | P a g e . the public sector banks hold over 75 percent of total assets of the banking industry. 31 private banks (these do not have government stake. The businesses of cooperative bank in the urban areas also have increased phenomenally in recent years due to the sharp increase in the number of primary cooperative banks. but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. The demand for banking services.the Voluntary Retirement Schemes (VRS). Currently. Consolidation is going to be another order of the day. The Cooperative bank is an important constituent of the Indian Financial System.

especially customer retention. Banking industry has been undergoing a rapid transformation. banks have very strong in-house research and market intelligence units in order to face the future challenges of competition. The cooperative bank is also regulated by the RBI. including of SMS Banking. needs. Apart from the Mobile Banking. cash positions. Furthermore. With the entry of new players and multiple channels. personal interaction with customers. Banks today are market driven and market responsive. their profiles. 1965. Customercentricity also implies increasing investment in technology. Some cooperative banks in India are more forward than many of the state and private sector banks.operative Societies Act. Net Banking and ATMs are the major steps taken by the banks in India towards modernization. According to NAFCUB the total deposits & lendings of Cooperative Banks in India is much more than Old Private Sector Banks & also the New Private Sector Banks. This exponential growth of Co operative Banks in India is attributed mainly to their much better local reach. and their ability to catch the nerve of the local clientele. customers (both corporate and retail) have become more discerning and less "loyal" to banks. location. This makes it imperative that banks provide best possible products and services to ensure customer satisfaction. requirements. 40 | P a g e . They are focusing on region-specific campaigns rather than national media campaigns as effective strategy for a diverse country like India. They have been managing a world of information about customers. etc. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act.

: KPR/BNK/123. WARANANAGAR. TAL: PANHALA DIST: KOLHAPUR. Jurisdiction: Kolhapur.UBD.1. There was a requirement for the development in areas of agriculture industry through which the challenges could be overcomed. ESTABLISHEMENT: 28-02-1966.4 Profile of Warana Bank: SHREE WARANA SAHAKARI BANK LTD. illiteracy. Pune.MH. There were no 41 | P a g e . Dated 28-02-1966 Reserve Bank License No: DBOD. unhealthiness. 21-11-1983. Ratnagiri. During those days the Warana Valley region was situated in the hilly areas where irrigation was the major problem and the farmers had to follow dryland cultivation. Reg. Raigad. Satara. there were many challenges before the country. Out of those were poverty. No. P.364. Solapur. Sindhudurg Districts and Navi Mumbai (Vashi). etc. History: Late after independence. Sangli.

1. Tatyasaheb Kore. for which irrigation was necessary. There was a need of a bank in rural areas which would help the farmers by giving them loans at cheaper interest rates. At such time there emerged a diamond in Kodoli village of Warana Valley who lightened up the lives of the rural people in the Warana Valley. He was Shri. For this purpose the Registrar gave permission for the establishment of co-operative bank in rural area in Maharashtra on trial basis. And at last the dryland agriculture was totally converted into irrigated land with his efforts. But only availability of irrigated land was not just a plus point but proper overall management was necessary i. Vishwanath Anna alias. For the people he was not just a common man but who took birth for the rural people to diminish the illiteracy and the darkness of poverty. Shri. He suggested the rural people to grow cash crops. It was started with initial paid up share capital of Rs. management of water and development of Agriculture as a business and also other secondary businesses which will be supporting agriculture. He worked for the rural community until his last moment. Tatyasaheb Kore first established Cooperative Sugar Factory for which he struggled day and night. 42 | P a g e . he started irrigation schemes and also he requested the government to construct dam.28 Lakh on 28/02/1966.options for the development of the people. For meeting the purpose of irrigation.e. dacoits and robberies in the Warana Valley. which lead to arise of loots. The farmers needed financial assistance for the development and at the times of difficulties. He was the person responsible for changing the lives of more than 5 Lakh people on the earth.

At present there are 23 branches and 1 extension counter and all are computerized. Today all economic transactions in Warana are through Warana Cooperative Bank Ltd. The development of sugarcane cultivator.The development of co-operative bank in rural area. Mr. Tatyasaheb Kore to start the Warana cooperative complex and with the same dreams keeping in mind and working on it efficiently to make those dream true by the Chairman of Warana Sahakari Bank. The bank which took birth in the rural area and started its branches and operations in urban areas i. 1949.e. 56 (O) gave Banking License to the bank on 21/11/1983. cobbler. After that the bank has made a super fast growth during last 37 years. and Vans. Rule No. Rickshaw. agricultural labourers. 1 branch in Sangli district and 1 branch in the economic capital of India i. Bank started 4 branches in Kolhapur district. The bank provides maximum loans to the rural artisans like the potter. farmers in the Warana Valley was only due to the establishment of Warana Cooperative Sugar Factory. Vinayraoji Kore are working wholeheartedly to fulfill those dreams of Shri. Tatyasaheb Kore. But it was not the limit for Tatyasaheb Kore. and backward class people to be developed. Then RBI under Banking Regulation Act. Tractors.e. village artisans. He wanted the other people in the unreached areas like small and marginal farmers. etc to develop their small businesses. Mumbai at Washi. its financial status. Nipunrao Kore and Hon. and management was seen by Reserve Bank of India. Warananagar. welder. the bank 43 | P a g e . Also it provides loans for the purchase of Truck. The dreams dreamed by Shri. landless labourers. Warana Sahakari Bank. To maintain the strong economy of the valley.

50 crores loan has been lent. The bank is playing a pivotal role in the overall development of Warana and the rural mass. 67 crores of deposits are accepted and around Rs. The efficiency of the bank is reflected on the latest statistical information like Rs. 8. 2. Probably this is a unique bank where the branches are spreading from the rural head office to city branches. 5. 9. It provides loans at subsidized interest rates for all farmers. The bank even accepts NRI deposits. 6.92 2134. 1 Shareholders Authorized Capital Paid up Share Capital Total Reserves and Funds Deposits Deposits Accounts Advances Advances Account Working Capital Audit Class 17782 1500.took shape in 1966.14 134478 20123.76 32198.40 10% 0. 4. Source: Annual Report 44 | P a g e .75 18938 35897.00 793. 1 Profit (31-03-2008) 1.) As on 31-03-2008 1. 3. General Information: Table No: 8 (Rupees in Lakhs. It is creating the banking mind in the rural population. 7. The bank is aiming still high in the days to come.14 “A” 117. 1 Dividend (31-03-2007) 2. weaker section and the needy.

Dist: Sangli. Tal: Hatkanangale. Pargaon. Tal: Walwa. Kolhapur. Tal: Panhala. Dist: Kolhapur. xxi. Tal: Hatkanagale. MIDC. Kale. Dist: Kolhapur. Bagal Chowk. Dist: Kolhapur. Tal: Hatkanangale. Tal: Panhala. xv. Warananagar. Shiroli. Kolhapur. Dist: Kolhapur. Tal: Panhala. Dist: Sangli. xiv. vi. Extension Counter. Tal: Hatkanangale. Peth Vadgaon. Dist: Kolhapur. Tal: Walwa. Kodoli. Dist: Kolhapur. Navi Mumbai. Laxmipuri. xiii. ii. Chikurde.Branches: i. Tal: Shirol. xii. Kini. xxiii. v. xx. ix. vii. xvi. Kolhapur. Dist: Sangli. Satave. iii. Dist: Sangli. Aitawade Khurd. Herle. 45 | P a g e . Market Yard. Main Branch. Vashi. Mangale. Market Yard. xi. iv. Tal: Hatkanangale. Warana College. Dist: Kolhapur. xxii. Sangli. Shiroli Pulachi. Tal. Tal: Hatkanagale. Dist: Kolhapur. Dist: Kolhapur. Shigaon. Tal: Hatkanangale. xxiv. Bhavani Mandap. Ichalkaranji. xviii. x. Khochi. Tal: Walwa. Dist: Kolhapur. Kolhapur. Shirala. xvii. Tal: Hatkanangale. viii. xix. Jaysingpur.

78. Reserve Fund b. Dividend to Members @10% c.00.Best Co-operative Bank. Mumbai’s Late. • Kolhapur District Cooperative Banks Association’s First Award for -. Provide General Insurance (Bajaj).00. Padmabhushan Vasantdada Patil Best Co-operative Bank Award. The customers give an overwhelming response regarding the problems of Amount 38.00 33. Rural bad debts funds d.00 3.40.000. Jaysingpur and Ichalkaranji wherein the bank tried to establish ‘productive dialogue’ with the customers. Warananagar: • Maharashtra State Co-operative Banks Association Ltd. Provide insurance to the members (Aviva Life Insurance).74 46 | P a g e .Best Recovery Management.00 382.000.74 1.000.00 73.000. Samvad Programme/Customer Meet – During the year 2003-04 the bank started a novel idea of “Customer Meet” and these meets are held at Kolhapur.62. -.48. Building Fund Balance of Profit for next year Total • • • • Provide loans at lower interest rates.Awards won by Warana Sahakari Bank Ltd.382. Features of Warana Bank: • Proper Distribution of profits: Table No: 9 Particulars a. Sangli.Best Bank Management. -.

Ratnakar Bank. the suggestions for the improvement and their demands. State Bank of India. 47 | P a g e . Facilities provided to the staff: • • • • • • • • • Two dresses per year. Bank of India.customers in bank. Housing loans. Medical allowance upto Rs. Ichalkaranji. • • Biometric system ATM – Thumb impression are used to withdraw cash upto Rs. 2000/Bonus upto 20%. Vehicle loans. Incentives upto 10% of his pay. Cash credit loan. 30000/-. Electricity bill payment facility started. Kolhapur. Competitors of Warana Bank: Following are some of the competitors of Warana Bank: • • • • • Ichalkaranji Janata Bank. Loan against payment. Kolhapur District Central Co-operative Bank. Special deposit scheme.

In our opinion proper books of accounts as required by the law have been kept by the bank as far as appears from our examination of the books. These standards require that we plan and perform the Audit to obtain reasonable assurance about whether the Financial Statements are free of material misstatement. These financial statements are the responsibility is to express an opinion on these financial statements based on our audit. We have conducted our Audit in accordance with Auditing Standards generally accepted in India. 2.) We have audited the Balance Sheet of ‘Warana Sahakari Bank Ltd’ as on 31st March. We report that 1. We believe that our Audit provides a reasonable basis for our opinion. 48 | P a g e .Report of the Statutory Auditors for the year 2007-08 (Under section 81 (5b) of Maharashtra Co-op Societies Act and Rule 69 of Maharashtra Co-op Societies Rules as applicable under Banking Regulation Act. We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of Audit. An audit also includes assessing the accounting principles used and significant estimates made by the Management as well as evaluating the overall financial statement presentation. 2008 and also Profit & Loss Account for the year ended on that date.

S/d Girish A.3. the books of accounts are in conformity with the law. 2008 and b. & ‘c’ of the Audit Report and show true and fair view. a. Date: 25/09/2008 Place: Kolhapur. of the profit for the year ended on that date are in accordance with part ‘a’. 104820 (For M/S. In case of Balance Sheet of the state of affairs of the bank as at 31st March. The Balance Sheet and Profit & Loss account dealt with by this report are in agreement with the Books of Accounts. In case of Profit and loss Account. Samant Partner Mem. c. Samant. and Jagoje Chartered Accountants. In our opinion and to the best of our knowledge and according to the explanation given to us. No.) 49 | P a g e . ‘b’. Powar. 4. After considering the working and functioning during the year 2007-08 the bank is allotted Audit Grade “A”.

Chapter II The Project 50 | P a g e .

2. 2. To identify the competitive advantages of Warana Bazaar and Warana Bank Vis a Vis the other retail outlets and the banks. To provide a SWOT analysis of the functioning of Warana Bazaar and Warana Bank besides.1 Title: “Evolution of Warana – Beyond the Lucky Gold Star Group”. 51 | P a g e . a future perspective of the same. • To know the response of customers towards the Warana Bazaar.3 Expected Results: Following results are expected from the project:  Drawing management and leadership lessons from Warana Bazaar and Warana Bank which can be applied to similar other organizations.2 Objectives: • • • To study the role of leadership in starting up of Warana Bazaar and Warana Bank and its progress.  Future performance and competitiveness of Warana Bazaar and Warana Bank. 2.

2.4 Advantages of the study: This study shows the ultimate effects of the growth of professionalism in co-operatives. the study was conducted on a short term basis which increases the chances of misinterpretations. This study highlights the changes coming in co-operative management due to mixture of essence of visionary leadership. 2. 52 | P a g e .  Based on the results further research can be carried out taking large area and sample size.5 Limitations of Project Study: Following limitations may come while conducting the project.  Due to the limited availability of time. The study shows whether the cooperative will withstand in future and fight the battle of independence.  Reluctance of people in taking active participation due to lack of interest.  Sampling errors may be the other limitation.

Chapter III Research Methodology 53 | P a g e .

3. collecting the information. collection. “Research is a more systematic activity directed towards discovery and the development of the organized body of knowledge”. The marketing research process consist of five steps such as defining the problems and research objectives.1 Definition:According to John Best.2 Data Collection: While deciding about the method of the data collection to be used for the study.2 Secondary data: Secondary data are those which have already collected by someone else and which have been already passed through the statistical process. the researcher should keep in mind two types of data i. Marketing Research is the systematic design. Sources of secondary data may either be published data or unpublished data. state. analyzing the information presenting the findings. 3. Usually published data are available in various publications through the central. primary and secondary. & local 54 | P a g e .1 Primary data: The primary data are those which are collected a fresh and for the first time. Collect the primary data during the project. developing the research plan. Primary data will be obtained either through observation or through direct communication with respondent and interviews.3. There are two methods of data collection: 3.2.e. analysis and reporting of data and finding relevant to a specific marketing situation facing the company.2.

 Performing SWOT analysis and financial performance of Warana Bazaar and Warana Bank. Here the researcher has used the secondary data in the form of:• • Data from finance department. magazines. trades associates.  Interaction with professionals and their perception about performance and future perspective. But due to time constraints I have selected only “Warana Bazaar” and “Warana Bank” for my study. diaries. letters.  Case studies on history of leaders of Warana starting from Tatyasaheb Kore and others. annual reports.government.3 Methods utilized for Study:  The development of WARANA can be compared with the development of “The Lucky Gold Star Group” of South Korea. 55 | P a g e . Data from the Internet. news papers. books. Here in this study the researcher have used secondary data means the data which have already been collected by someone else and which have already been passed through the statistical process.  Semi-structured questionnaires were prepared as per the need for the present study and data was collected by personal interviews and through discussion with different stake holders.e. 3. unpublished data also like reports. literatures and other sources. Technical and trade journals.  Secondary data was collected from the records of the organization a.

Chapter IV Data Processing and Analysis 56 | P a g e .

A. WARANA BAZAAR: 1) Members: TABLE NO: 10 Manpower Involvement (31/03/2007): Sr. No 1 2 3 4 5 6 7 8 Manpower Individual Members Board of Directors Purchase Committee Members Staff Committee Members Branch Committee Members Audit Committee Members Recovery Committee Members Franchisee Committee Members Total Staff Male 2211 9 2 2 5 3 3 4 389 Female 7892 10 4 4 2 3 2 3 121 Total 10103 19 6 6 7 6 5 7 510 TABLE NO: 11 Members Year 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Male 1833 2085 2210 2210 2212 2215 2225 2225 2226 2225 2227 2219 2211 2211 2212 Female 5667 6571 7473 7479 7477 7481 7551 7551 7553 7554 7581 7576 7776 7892 7898 Total 7500 8656 9683 9689 9689 9696 9776 9776 9779 9779 9808 9795 9987 10103 10110 57 | P a g e .

Figure: 2 From the above graph we can see that the number of members in 199394 were 7500 and in 2007-08 were 10110. 58 | P a g e . The faith of people on the Warana Co-operative Complex and Tatyasaheb and his family was the main reason for the increasing interest in Warana Bazaar by the members.

26 65.28 62. in Lakhs 53.49 63.2) Share Capital (31/03/2007): TABLE NO: 12 Sr.85 9.38 2.50 52.5 62.67 61. in Lakhs 35.84 57.90 56.98 56.86 54.24 38.46 41.78 66.75 59 | P a g e .02 65. No 1 2 3 4 Members Individual Government Warana co-op Sugar Factory Other Institutions Rs.00 0.49 TABLE NO: 13 Share Capital Year 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Rs.79 54.

53. 9.85 Lakhs and that of governments share was Rs. The share of co-operative sugar factory was Rs.00 Lakhs. 35. Also as on 31/03/2007 the individual share capital of Warana Bazaar was Rs. 2. 60 | P a g e .75 lakhs in 2007-08.24 lakhs in 1993-94 to Rs.38 Lakhs. 63.Figure: 3 From the above figure it can be seen that the share capital of Warana Bazaar is continuously increasing from Rs.

Particulars 46.97 Sr.3) Working Results: TABLE NO: 14 2001-02 2004-05 2002-03 2003-04 2005-06 No 1) 2) 3) 4) Sales (Crores) Gross Profit (Lakhs) Net Profit (Lakhs) Audit Class 2006-07 80. 61 | P a g e .56 8.39 9.22 317.86 368.90 “A" Class Since Beginning From the above table it can be seen that the sales of Warana Bazaar is growing continuously with the increase in net profit from the year 2001-02 to 2006-07.00 393.47 51.44 330.65 47.51 07.36 294.31 68. Warana Bazaar has got Audit Class “A” since beginning.00 309.55 05.97 06.63 61.18 04.

625 1.125 08.Financial Assistance from the Government: TABLE NO: 15 Furniture Subsidy Sr.40 Lakhs from which the amount refunded up to 31/03/2007 as per installment given was Rs.75 ** ** 0.65 0.00 24.500 0. 62 | P a g e .50 0. etc.375 4.875 0. 45. was Rs.20 2.25 ** ** From the above table we can see that the total amount of financial assistance from government to different branches of Warana Bazaar for different purposes like godown. in Lakhs) Godown Subsidy Managerial Subsidy 0.53 Lakhs.00 05.35 1 2 3 Warananagar Vadgaon Retail Outlet 10. No Share Capital Branches Loan for furniture Loan for Godown (Rs. furniture.20 2. 61.

4) Total Sales: TABLE NO: 16 Total Sales Year 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Rs.39 25.56 44.36 47.00 81.64 37.62 41.86 80. in Crores 20.67 63 | P a g e .44 68.29 28.22 51.44 31.07 61.13 46.11 32.

Due to this the level of satisfaction of customers has been increased from the services provided by Warana Bazaar. 64 | P a g e . This is due to the different features of Warana Bazaar which includes cheaper rates. Due to this the customer loyalty towards Warana Bazaar has been increased. easily available at doorsteps. different schemes and good after sales service.Figure: 4 From the above graph we can see that the amount of sales from the Warana Bazaar including the two departmental stores and the other retail outlets is continuously increasing from 1993 upto 2008. quality produce.

24 485.79 335.94 143 179 206 252 272 294 308.53 Figure: 5 65 | P a g e .58 391.6) Total Income: TABLE NO: 17 Total Income: Year 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Rs in Lakhs 117.08 137.17 328.5 425.4 352.

61 2103.68% 26687.30 91. WARANA BANK: 1) Performance Highlights: TABLE NO: 18 Performance Highlights Particulars Paid up Share Capital Total Reserves and Funds Total Working Capital CRAR Deposits Loans Investments Total Income Total Expenses Net Profit Net NPA % Business per Employee Profit per Employee Audit Class 2005-06 610.71 9.44 0.42 0.53 793.76 2708.94 0.82 198.54 2584.62 35897.64 1843.54 20123.68 30115.34 148.14 2897.B.14 12314.81% 167.63% 26671.33 2675.35 “A” Amount in Lakhs 2006-07 2007-08 705.89 3056.88 114.15% 2.92 2002.56 “A” “A” Source: Annual Reports 66 | P a g e .32 2960.88% 172.73 29253.60% 11.28 2845.66 10137.14 11.40 3.69 32198.23 3205.08 16689.14 17726.09 1233.24 3.75 9833.

21 8538.67 11379.89 16689.43 7762. 67 | P a g e .54 20123.46 14714.66 17726.2) Loans Sanctioned: TABLE NO: 19 Loans Sanctioned Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 Figure: 6 25000 20000 15000 10000 5000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Amount Amount (in Lakhs) 6682.75 Loans Sanctioned The loans sanctioned by Warana Bank are the result of the timely repayment of the loans by the farmers.56 8050. So the amount of loans sanctioned is increasing year by year due to easy procedure and quick recovery.

71 071.34 148. 68 | P a g e .40 From the above graph we can see that the profit level of Warana Bank is continuously increasing year by year.95 081.69 104.24 114.40 Lakhs.52 Lakhs and now the profit earned in the year 2008 is Rs. 148. 52. In the year 2001 the profit earned was Rs.12 091.52 064.3) Profit Earned: TABLE NO: 20 Year 2001 2002 2003 2004 2005 2006 2007 2008 Figure: 7 Profit Earned Amount (in Lakhs) 052.

5) Deposits: TABLE NO: 22 Year Deposits Amount (in Lakhs) 69 | P a g e .71 30115.4) Working Capital: TABLE NO: 21 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 Working Capital Amount (in Lakhs) 10901.14 Figure: 8 The working capital requirement of Warana Bank is also increasing year by year which results in the increasing level of profit.03 19889.67 15959.70 24746.30 12872.78 14495.01 29253.62 35897.

2000 2001 2002 2003 2004 2005 2006 2007 2008 9453.86 13808.09 26671.14 Figure: 9 DEPOSITS From the above graph it is clear that the deposits from the members are gradually increasing year after year.71 22262.69 12559.51 17254.08 26687.52 11366.69 32198. 70 | P a g e .

A strong believer in Co-operative movement. Alias TATYASAHEB KORE (1914-1994). Founder SAHAKARMAHARSHI LATE SHRI. • • A freedom fighter and social reformer.V. • • 71 | P a g e . • • • • He deeply studied on each and every aspect of projects before applying his thoughts. He used to encourage the people for their development by helping them to start small businesses due to which the standard of living of people improved. Prime Minister Late Yashwantrao Chavan. A great visionary who believed in "Rural Development through Cooperative Movement." A leader who changed barren land into a prosperous area comprising of 80 villages by establishing Warana Co-operative Complex.A.Objective 1: To study the role of leadership in starting up of Warana Bazaar and Warana Bank and its progress. He was a person with a long term vision. A close associate of Former Dy.

Sugarcane was the main crop cultivated by the farmers in the region of Warana Valley. Also he concentrated on the idea creativity and always he accepted newer ideas from the professionals. Warana Co-operative sugar factory has the best proved many times Co-operative sugar factory in the country. Shree Warana Co-operative sugar factory was founded in the year 1956. • • • • Warana Co-operative Sugar Factory: Sixty years back Warana was a barren land and has emerged on the world map as a model for all-round development of the region through continuous efforts of all concerned under the able leadership of late Shri. friends and other people regarding the developments in Warana Valley. Each time he concentrated on the aspects like planning. organizing. He had no political interest in any of the organization within the complex. He just worked for the upliftment of the rural people. In other words. we can say that without knowing the definition of marketing (creation and delivery of standard of living) late Tatyasaheb Kore has done such a Herculean task within a short span of 60 years. Tatyasaheb Kore. The farmers use to cultivate sugarcane for the purpose of 72 | P a g e .• He had very much attachment towards doing any work and he struggled for the accomplishment of such a work. It has proved to be a nucleus for the multi –faceted development of the region and for bringing about the upliftment of the masses. a man with great vision and commitment towards the upliftment of the poor. and coordination in any organization. He had no personal interest during his work.

He was helped by Former Dy. An idea stuck in his mind to start a co-operative sugar factory for the people. because there were no such techniques available for the extraction of sugar from sugarcane in the surrounding areas. The farmers were not able to fetch appropriate price for jaggery which did not cover their cost of production of sugarcane. He faced those problems firmly. The successful establishment of a co-operative sugar factory in 1959 completely revolutionized the life of Warana. Tatyasaheb Kore. Later on the people realized the importance of work done by Tatyasaheb and then they went on with him to carry forward and complete the task. This co-operative sugar factory has bagged first prize for its best technical efficiency in the year 1988-89 at the National Federation of Co-operative Sugar Factories Ltd. There were many problems during the establishment but Tatyasaheb didn’t stop his work. The working efficiency has broken all the existing records in the long-standing Indian history of sugar industries. He thought that the farmers should get higher prices for sugarcane and the cost of production should be covered. He got this idea to start the sugar factory from the Pravara cooperative sugar factory of Pravaranagar. This condition was seen by Shri. In 1991-92 it has also been awarded by Vasantdada 73 | P a g e . With this factory Tatyasaheb Kore and his magnificent team touched the lives of the entire weaker section. Through this co-operative sugar factory the downtrodden started growing rich and their life standards were updated. Prime Minister Late Yashwantrao Chavan to convert his dreams in truth. Today it is the backbone of this complex. Sometimes the farmers used to burn the crop of sugarcane due to low market prices for jaggery. So the farmers used to depend on the production of jaggery and sell it. New Delhi.production of jaggery. His plans were supported by the Government at that time.

but he was on who brought the dreams into reality. He forced the government to construct dams and bunds over the Warana river. But he was not the person who only dreamed. Every effort is being put to make the sugar factory an ideal one. For this he used to wait for appropriate time to come and the appropriate person to be identified. Pune for its best technical efficiency in Southern region of Maharashtra. Consumers Federation Ltd. Tatyasaheb got an honest and reliable person for 74 | P a g e . Warana Bazaar: The dream for starting the Warana Bazaar was dreamed by Tatyasaheb Kore before 25 years. Luckily at that time there was scheme of National Co-op. he started irrigation schemes. He had the powers and ability to start the consumer co-operative but he knew the pros and cons. he visited different shopping malls during his leisure time and applied some ideas for the development of Warana Bazaar.. Warana Co-operative Complex’s total growth is dependent on this sugar factory. So he waited for 25 years. 1978. it would be pre planned. His dream was to bring the people in the 80 villages in and around Warana Valley above poverty level. The sugar factory has also bagged many prizes from the National Federation of co-operative sugar factories Ltd. to start cooperative consumer stores in the rural areas in India. When he visited Italy and Japan for the purpose of visit to the paper mills. To make available the irrigation facilities. New Delhi. This is parent unit from which Warana is drawing inspiration and enthusiasm for its overall growth. Before starting any project in Warana Valley. The dream of starting Warana Bazaar came into existence on 2nd April. The consultancy and promotional cell of the federation identified Warananagar as the appropriate place.Sugar Institute. At that time Shri.

sugar factory. So the farmers were supplied with cattle initially and they were helped to 75 | P a g e . But still he managed the people and he was successful in attracting the people towards Warana Bazaar. Warana Dairy: With the sole intention of supplementing the income of zealous farmers a great idea of dairy farming was put forth in the minds of enthusiastic team.per kg upto 7 kg per member per month. This white revolution has spread to all other 78 surrounding villages and added revenue of Rs. The main objective to start the store was to make available the essential goods at the doorsteps to the members. He was Mr. The Warana Bazaar was started on three major principles i. 2/. The aim to start Warana Bazaar was that. 150 crores per annum. poultry. the people in the Warana Co-operative Complex should get the essential goods at reasonable rate and better quality at one place.Warana Bazaar. in 1968. quality material. Vijay Kesarkar. etc. It saved much time and energy of farmers to go to the factory and get sugar. This resulted in the birth of the Warana Dairy.e. Tatyasaheb thought that there should be a secondary business of the farmer which would support the agriculture business. He was the first General Manager of Warana Bazaar. farmers and workers working in the nearby areas like dairy. Merchants and traders used to divert the minds of people by saying that it was impossible to start up such a kind of Bazaar. The aim of starting the Warana Dairy was that. Tatyasaheb expected that every common man should remain satisfied. assured weight and minimum price. There was much opposition of the merchants and traders during the establishment. The Warana Bazaar branches were helpful in the distribution of the sugar to members at the rate of Rs.

in future.a malted milk product has bagged a mammoth order of 550 metric tonnes from the Indian Army. The dairy.maintain these cattle for their feeding and other day to day activities like vaccination. Milk Powder.'s Bournvita is produced from Warana Dairy. The turnover for the year 1997-98 was Rs. which is supplied to the farmers for their cows and buffaloes. Drinking chocolate and Cocoa Powder. at subsidized prices. These products once tasted chase the taster. pasteurised butter. This simply reflects the quality and efficiency of the dairy. This will surely bring many credentials and laurels to Warana. Cheese. For its qualitative and quantitative excellent performance dairy has acquired an ISO 9002 Certification in record time of three months. The dairy plant has a capacity to handle more than 300. Lassi. Amrakhand. Warana Cattle-feed division is producing the quality cattle feed. By selling 2035 tonnes of Shrikhand in the year 1998. M/S. The dairy has made its strides all the way. Warana reached a new record of maximum selling of Shrikhand in India. Ghee. has joined hands with Warana Dairy and started production of Bournvita. and Strawberry Desert etc.000 litres of milk of which 100. 76 | P a g e . A clean and efficient management of dairy brought the proud products of Warana like Warana pasteurised Milk. Warana Dairy has won many awards for its quality products and efficiency. • Lassi: "Warana lassi" The all season drinks its most popular drink from Warana. Butter. has ambitious plans to venture into products like branded cheese. Cadbury India Ltd. "Warana Stymena" . Even the 60% of total production of the Cadbury India Ltd. beverages and ice creams.000 litres can be converted into milk products. etc. 138 Crores. Shrikhand.

fertilizers. It is creating the banking mind in the 77 | P a g e . But it was not the limit for Tatyasaheb Kore.e. It was a major challenge for Shri. Cheese: The products Mozzarella cheese. The member’s along with Tatyasaheb collected the amount and paid it to government and got the bank registered within 4 days. paneer. landless labourers. Warananagar. keshar. processed cheese. agricultural labourers. cheese. the bank took shape in 1966. etc in easy way. Today all economic transactions in Warana are through Warana Co-operative Bank Ltd. ghee. To maintain the strong economy of the valley. farmers in the Warana Valley was only due to the establishment of Warana Cooperative Sugar Factory. mango & Elachi. He wanted the other people in the unreached areas like small and marginal farmers. The development of sugarcane cultivator. Warana Bank: The bank which took birth in the rural area and started its branches and operations in urban areas i. and backward class people to be developed. purchasing machinery. The aim of starting the Warana Bank was to make available credit for the farmers for land development.• • • • • Shrikhand: Largest manufacturer & seller of Shrikhand in four flavors Badam Pista. village artisans. Butter: Salted butter. white butter & yellow butter are the best products. Tatyasaheb to gather the capital required to start the bank. 1 Lakh and to be paid to the government to register the bank within 4 days. pesticides. seeds. Milk: Milk & milk products from India like milk powder. and lassi. Ghee: Ghee is a quality product from Warana available in different packing sizes. He gathered the amount of Rs. Warana Sahakari Bank. butter.

it has made a great impact on the minds of the youngsters. and it is achieving its goals with rapid strides. Warana Educational Complex: Preparing the mass to march towards 21st century. It provides loans at subsidized interest rates for all farmers.rural population. Probably this is a unique bank where the branches are spreading from the rural head office to city branches. Within few years of its establishment. Under the roof of the Shikshan Mandal many educational institutions are running which are: SHREE WARANA VIDYAMANDIR An ideal school for an ideal valley with an ideal idea. 50 crores loan has been lent. With an ideal idea of building stronger India. education alone can transform the lives. The school emphasizes on character building and discipline. Shree Warana Vidyamandir is offering education in Marathi medium from Lower KG to 4th standard. Education alone can revolutionize education alone can create awareness. 78 | P a g e . The bank is aiming still high in the days to come. and education alone can make the mass to march ahead. weaker section and the needy. Shree Warana Vibhag Shikshan Mandal was born in 1964. The efficiency of the bank is reflected on the latest statistical information like Rs. The bank is playing a pivotal role in the overall development of Warana and the rural mass. 67 Crores of deposits are accepted and around Rs. The bank even accepts NRI deposits.

To compete anywhere in the world. Tatyasaheb Kore English Academy has started functioning since 1994. To prepare the kids of the Warana valley to the forthcoming challenges. today. Shree Warana Vidyalaya. the necessity of disciplined education.SHREE WARANA VIDYALAYA A model for Gurukul System. TATYASAHEB KORE MILITARY ACADEMY Unique of its kind. YASHWANTRAO CHAVAN WARANA MAHAVIDYALAYA Inspiring the rural youth. With its highly qualified staff it is commanding respect from the people around. This Sainik School is striving to prepare the students who can entirely take up the responsibility of protecting their Nation and motherland. which is a residential school from 5th to 10th standard. Yashwantrao Chavan Warana Mahavidyalaya with its Arts. It has English medium education starting from lower Kinder Garten to High school level. A unique kind of Sainik School was established in 1997 to teach the individual. Science and Commerce faculties is attracting the rural youth and guiding them to shape their future. TATYASAHEB KORE ENGLISH ACADEMY Preparing the kids to the modern roaring technologies of the world. In its preliminary stages itself. a disciplined English medium education has become essential. which speaks the standard of the school. 79 | P a g e . it has achieved many successes with its disciplinary acts. Getting the admission at the residential school is becoming a prestigious issue. has attracted several people for its unique educational system.

] was established in 1983. Shortly it is proposing to have a tie-up with M/s.P. T. Institute is also offering even postgraduate course in Electronics Engineering (Vocational) and Chemical Engineering (Regular).].] was set up to absorb the newly trained youth in I. I.] was established with the sole intention of imparting the technical education to the rural youth who have passed 10th standard. Quality based materials take shape in this workshop. The Institute is planning to add the 80 | P a g e .I. Soon it is planning to start Machinist and Turner courses. K. The Institute is approved by All India Council for Technical Education.C. for quality products. E. An industrial training institute [I. A Training Cum Production Centre [T.P.C. TATYASAHEB KORE INSTITUTE OF ENGINEERING TECHNOLOGY Shouldering the responsibility of technicalities of technology and to bring the technical education to the doorsteps of the rural mass. The institute with its Civil.C. Electronics and Mechanical Engineering undergraduate disciplines has made a stupendous growth over the years. The youth after few years of practical training in TCPC are ready to face the challenges of the practical field. TATYASAHEB KORE TRAINING CUM PRODUCTION CENTRE A laboratory where things take shape. After the completion of the course the practical training is also given to the students in Training Cum Production Centre [T.T.I. Tatyasaheb Kore Institute of Engineering and Technology [T. fitting.C.T. New Delhi and awarded “A " grade for its overall achievements in the field of Technical Education. electrical and sheet metal. It is offering training to the students in the field of Welding. Godrej & Co. Chemical.TATYASAHEB KORE INDUSTRIAL TRAINING INSTITUTE Quenching the thirst of the technical mass.

Every member in the family should be literate and educated was the dream of Shri. In this 50 characteristics and skills of leader were mentioned like communication skills. etc. Warana Poultry: Every farmer's family should have small poultry. Information Technology and Biotechnology engineering disciplines to its wings. moderately strong. decision making power.2 million eggs per annum. feed. A leadership self assessment activity was conducted in Warana Bazaar wherein the leaders of Warana Bazaar and Warana Bank were assessed for the level of preference or comfort with leadership characteristics and skills. The result is that today around 500 poultry units are working. It was observed that the leaders who are at present leading the organizations scored maximum 81 | P a g e . veterinary facilities and marketing of egg. moderately weak. The evaluation was done for maximum scores. and those were rated as very strong. and very weak. Today Warana is successfully producing more than 13. adequate. And also planned to start post graduation course in Civil Engineering. Tatyasaheb Kore. The farmers were given training in scientific rearing of birds. which help them to maintain their own poultry unit. So he established educational complex. honesty. which can supplement the additional income. This was the dream of Late Shree Tatyasaheb Kore and he advanced to achieve the same.Computer Engineering. Today the Warana Educational Complex is considered one of the top educational complexes. The maximum score was 250 and the minimum score was 50. Central poultry unit was set up to provide layer birds.

They believe that there is opportunity for growth by improving the relationship with the employees. and all others who are directly or indirectly related to Warana Co-operative complex. farmers. Also the leaders they like to learn newer things and try to search for newer opportunities. 82 | P a g e .which shows that they are well on their way to become a leader.

Any advantage a company has over its competitors because it can do something which they cannot or it can do something better than they can.” An advantage that a firm has over its competitors.Objective 2: To identify the competitive advantages of Warana Bazaar and Warana Bank Vis a Vis the other retail outlets and the banks. These include: • Providing products at low cost • Differentiating features • Serving unique needs • Expertise • Resource strengths • Capabilities to do new things 83 | P a g e . distribution network and customer support. What is Competitive Advantage? A company’s ability to outperform its competitors (earn higher profits). allowing it to generate greater sales or margins and/or retains more customers than its competition. There can be many types of competitive advantages including the firm's cost structure. product offerings.

By taking the advantage of these contacts. processors and different FMCG industries. Tatyasaheb used to say that “Money saved is equal to Money earned”. Bazaar procures the goods directly from these 84 | P a g e . or cost advantage. According to this principle the money saved of the people in and around Warana Valley reaches upto the amount of rupees 12 crores. the more difficult it is for competitors to neutralize the advantage. The principle of “Co-operation Amongst the Co-operatives” is incorporated in different organizations in the Warana Cooperative Complex. There are two main types of competitive advantages: comparative advantage and differential advantage.Competitive advantages give a company an edge over its rivals and an ability to generate greater value for the firm and its shareholders. which gives the firm the ability sell its goods or services at a lower price than its competition or to generate a larger margin on sales. The more sustainable the competitive advantage. Comparative advantage. A differential advantage is created when a firm's products or services differ from its competitors and are seen as better than a competitor's products by customers. is a firm's ability to produce a good or service at a lower cost than its competitors. In the case of WARANA BAZAAR the competitive advantages identified which generate greater sales or margin and retain customers were as follows: • As far as the cost advantage of Warana Bazaar is considered over its rivals. the Bazaar has direct contacts with the producers.

• The products offered by Warana Bazaar at its two departmental stores and other branches and franchisees is same all over as per the price list generated by the head office. • Also the supply chain of Warana Bazaar is very efficient by which the goods are made available for the customers as per their needs at right time.producers or processors. etc so that the inventory level to be maintained for right kind of goods and which can be made available to the customers. • • Also some of the goods like edible oil are private labeled and sold by the name of Warana Bazaar. previous years demand. festivals. This direct procurement from industries minimizes the cost of goods due to shortening the marketing channel and reducing the middlemen’s commission. in right quantity and at right place with best quality. so quality material is obtained. immediately the farmers are informed of the price fall and they are sold goods at the lower or reduced prices. This is the strategy used by Warana Bazaar to retain the existing customers and attracting new customers. the increase in the price level of the goods is not immediately informed to the farmers and the sale of the goods is carried on as per the previous rates but when there is price fall in the market for the goods. • The other characteristic of Warana Bazaar is that. Most of the procurement of the foodgrains is done from the farmers. • The forecasting of demand for the goods is carried out taking into consideration different factors like seasons. when there is rise in the price for the goods in the market. 85 | P a g e .

and Akshay Tritiya. • • Goods are provided at discount rates or discount coupons are given to the customers on purchase of goods worth Rs. 250/-.• As far as the differentiations based on better services are considered the services provided by Warana Bazaar to their customers is best. Due to this respect towards the customer is shown and the proverb “Atithi Devo Bhava” which means “Customer is God” is proved. “Gul Mahotsav”. They create a feeling in the mind of the customer that the Bazaar is for their service and they have given a chance to the Bazaar to provide them service. Exhibitions of different cereals and pulses is arranged in the complex like “Tandul Mahotsav”. • • • • The after sales service of Warana Bank is also best. the customers are guided by the staff during the purchase. Each and every customer is welcomed at the entrance of the Bazaar. Home delivery services are also provided by Warana Bazaar. Every customer is treated friendly. Dassera. 86 | P a g e . for bulk purchases. Credit Facility for the members of Warana Co-operative Complex. Different schemes are launched by Warana Bazaar during festive seasons like Diwali. which increases the overall sales in these exhibitions. There are no such complaints registered yet regarding the after sales service. “Dal Mahotsav”. etc. • Queries and problems of customers are solved by providing best services.

500. 250g. In the case of WARANA BANK the competitive advantages identified over its rivals which generates greater margins and retain customers are: • • • • • • • Proper distribution of profits. Minimum number of documents is required. Samvad Programme/Customer Meet – During the year 2003-04 the bank started a novel idea of “Customer Meet” and these meets are held at Kolhapur. Captured majority of market share in rural areas. etc. The procedure for sanctioning loan is easier than the other banks.e. • • • The customers are provided goods in the packaging suitable for them i. 5 kg. The installments for repayment are as per the feasibility of the farmers to repay them.• The customers are also made aware of the fake and spurious goods in the market by arranging the awareness programmes like “Ashihi Bhesal Ashihi Chalakhi”. The customers of the bank are provided loans at lower interest rates. The Warana Bazaar brand itself shows the quality goods at cheaper rates. 1 kg. Jaysingpur and Ichalkaranji wherein the bank tried to establish ‘productive dialogue’ with the customers. Sangli. Provide insurance to the members (Aviva Life Insurance). Provide General Insurance (Bajaj). The customers give an overwhelming response regarding the 87 | P a g e .

Captured majority of market share in rural areas.problems • • • of customers in bank. Biometric system ATM – Thumb impression are used to withdraw cash upto Rs. Electricity bill payment facility started. 88 | P a g e . the suggestions for the improvement and their demands. 30000/-.

ViceChairman and Directors of Warana Bazaar. Warana Bazaar pattern has become a highly developed pattern which is employed in various other co-operative bazaars.Objective 3: To provide a SWOT analysis of the functioning of Warana Bazaar and Warana Bank besides. The Warana Co-operative Sugar Factory which is the mother institute of all other co-operatives is also the strength and backbone of the Warana Bazaar.e. a future perspective of the same. 89 | P a g e . The competitive prices of products of Warana Bazaar as compared to the rivals. It is the strength of Warana Bazaar. • • • • • • • • The cooperation of Management Body i. Loyal customers. Experienced personnels in each and every department. SWOT Analysis of WARANA BAZAAR: Strengths: • • The Warana Co-operative Complex is clustering together itself. Strong and well built relations with different producer organizations. Chairman. Brand image in the community. Low operating cost of the organization including overhead capital expenses.

General Manager in Warana Bazaar so that there should be efficiency in the working of organization. • • • Marketing strategies are highly structured considering the rural customer base and also changing with changing environment.e. No political involvement in the operations i.e.e. the word of mouth publicity. • Proper control over maintaining the inventory level and the bazaar is trying to maintain zero inventory level. continuous learning. • • Well developed network of 40 branches and 6 franchisees.e. Accounts Manager. The price and quality of the products in Warana Bazaar speak i. Well designed and structured marketing channel. General Manager. Purchase Manager. If the bazaar plans to start a branch at any place. Captured majority of market share in the rural areas within the area of operation.e. Well defined organizational setup. 90 | P a g e . Sales Manager. Continuous knowledge upgradation of managerial personnels by exposing them to different seminars and visits i.• Highly experienced and visionary management body and management professionals • • i. Authorities and responsibilities are delegated to each and every individual at each level in the organization. • • Professionalism in serving the people at large. the authorities are delegated to the respective organizational heads in the cooperative complex i. etc. it is just a job of 3 days for the management.

etc. Timely payment for goods procured which maintains good relationship with the producers or the suppliers. • Less devotion towards work of different personnels in the organization. 91 | P a g e . Increasing the number of products range. internet by the professionals (not more proficient due to heavy work schedule and coordination).e.) because the consumer demands for different services are increasing. Under communication of branch managers with the head office i. • The organization personnels are not accustomed to use the latest technologies i. training for sales. use of computers. • • Overstaffing in various departments. communication between the branch manager and the head office is lacking for some sort of requirements or orders. Weaknesses: • Training of manpower available in rural areas has become a rigorous job (increasing their IQ level.e. Opportunities: • • • Demand for Warana Bazaar branch at every outskirt of district and also beyond district places. Developing the convenient shopping stores chain of retailing in India.• • Vilasrao Kore Consumer Co-operative Training Centre for training the employees.

fruits. • If there is entry of any private retail chain. and if they offer services better than Warana Bazaar. which may compete with Warana Bazaar. etc. Future perspective of Warana Bazaar:  In future Warana Bazaar is planning to start bar code system in all branches so that it will become easy to make bills efficiently and correctly.• • Private labeling and its expansion is also an opportunity for Warana Bazaar. • Private entrants may imitate the policies of Warana Bazaar to attract the customers. Therefore it is an opportunity to start a service station in the area. for selling. etc which largely affects the development of Warana Bazaar. Threats: • • Political changes in Warana Co-operative Sugar Factory. This condition has been already started by small retailers and they compete up to cut throat level in the festive seasons. 92 | P a g e . Warana Dairy.  Also Warana Bazaar is planning to make the two departmental stores air conditioned so that it will create good ambience. • There is scope to keep perishable commodities in Warana Bazaar like vegetables. Big retail chains are planning to target the rural areas to start their operations like Reliance Fresh. Tata Kisaan Sansar. then the customers may get diverted. Godrej Adhar. It is seen that there is no automobile service station in the nearby areas. etc.

Attrition rate. Manpower availability. The future of Warana Bazaar is very much bright in coming years. Continuous upgradation of knowledge of managerial personnel’s by exposing them to different seminars. Warana Bazaar has already created a brand image in the minds of the people. the expansion of departmental stores in its own infrastructure. No loans can be given over exposure norms. visits.  Bazaar should make use of this advantage for the expansion of Warana Bazaar i. Well developed network of branches.e. Well developed infrastructure. etc. Captured majority of share in rural areas. Efficiency of employees. SWOT Analysis of WARANA BANK: Strengths: • • • • • • • • Customer Loyalty. Image of Warana Bank in the Market. Weaknesses: • • • • Repayment of loans is not achieved in time. The people have become very much familiar with Warana Bazaar and have become loyal towards the bazaar. Highly visionary Management Body. 93 | P a g e .

the information from the branches can be easily transmitted to the main branch in short time. To get benefit of this system. Expansion of the network of branches. Investment in government securities is compulsory. Initially some of the urban 94 | P a g e . In today’s modern field of banking the people are in need of quick services. the bank has completed work of Data Centre building and the interior work has been finished at Kolhapur. Difference between Nationalized and Co-operative Banks. Internet Banking. Future perspective of Warana Bank: a. Threats: • • • • Restrictions from RBI for Co-operative Banks.Opportunities: • • • • Core Banking. But due to recession the profit is in the direction to decrease. Observing the failure condition of the other co-operatives. The importance of core banking is increasing day by day. So for this the bank is going to start Core Banking Solution. the farmer members are withdrawing their accounts. due to which the processing will become efficient. So it has become a threat for the bank to invest in government securities. Increasing number of Biometric Cash Dispensing Machines (ATM’s). Due to the core banking solution system.

Satara. d. It has become a challenge for the bank in today’s competitive age to keep up its position which it is at current stage i. The bank has started the Biometric Cash Dispenser (ATM) service in Kolhapur and Warana areas in 3 branches. efficient use of available manpower. Warana Bank is the first bank to give such type of service to the people in rural areas and the bank is trying to give this service in maximum branches. Observing the current economic status and thinking of the new economy. c. “A” grade. there should be many changes made in the economy regarding the banking sector. e. e. b. In future the bank is planning to open up new branches at Pune. the other branches will be connected later on.branches will be connected to this Data Centre. 95 | P a g e . The coming years will be challenging one for banks for which the banks should be ready to face those challenges by using newer technologies. After observing the results. Bambavade and Miraj.

33 36.67 100 Figure: 10 When the customer satisfaction survey of 60 farmer members was conducted in the areas of Warana Bazaar.Objective 4: To know the response of customers towards the Warana Bazaar. TABLE NO: 23 Particulars Male Female Total Frequency Table for Population Frequency Percentage 38 22 60 63. 96 | P a g e . it was observed that only 37% of female members responded to the survey and rest 63% male members responded to the survey.

majority of the customers i.33333333 100 Figure: 11 From the survey it was observed that out of 60 members.) Below 20 20-30 30-40 Above 40 Total TABLE NO: 24 Frequency Table for Age Group Frequency Percentage 0 18 25 17 60 0 30 41.Age Group (Yrs.e. visiting Warana Bazaar were in the age group between 30-40 years. 97 | P a g e .66666667 28. about 42%. 30% of the customers were of the age group between 20-30 years and about 28% customers were of the age group above 40 years.

666666667 100 Figure: 12 Considering the qualification of the customers. 98 | P a g e . 20% customers are Illiterate and 20% customers are graduate. it was observed that out of 60 members about 58% customers are 12th pass.Qualification Illiterate 12th pass Graduate Post Graduate Total TABLE NO: 25 Qualification Frequency 12 35 12 1 60 Percentage 20 58. Only 2% of the customers are post graduate.33333333 20 1.

per month.per month and about 7% customers purchased goods of Rs. 2000/.per month.500/. 99 | P a g e .to Rs. the people below poverty level. These were the customers which included the college students. The remaining 18% customers purchased goods of Rs. 5000/. it was observed that about 42% customers purchased goods of Rs 1000/.to Rs. 2000/per month.to Rs.TABLE NO: 26 Monthly Expenses Monthly Expenses 500 500-1000 1000-2000 2000-5000 Total Frequency 11 20 25 4 60 Percentage 18.666666667 100 Figure: 13 From the survey conducted of 60 members regarding the monthly expenses on purchase of goods from Warana Bazaar. while about 33% customers purchased goods of Rs.33333333 41.33333333 33. 500/.66666667 6. 1000/.

33333333 96. 97% of customers were benefited by getting goods with assured weight. about 98% of customers were benefited by getting variety of choices in purchase of goods. 100 | P a g e . 95% of customers were benefited by the reasonable rates of the goods.66666667 Surveying the customers for the benefits they get from the purchase from Warana Bazaar it was observed that 100% of the customers were benefited from the quality products they purchase. 92% of customers were benefited by getting the goods at their door step.666666667 91.66666667 1. While only 2% people were benefited by the credit facility because the credit facility is available only for the members.TABLE NO: 27 Benefits from Warana Bazaar Benefits Frequency Reasonable Rate 57 Good Quality 60 Variety Choices 59 Assured Weight 58 Credit Facility 1 At door step 55 Figure: 14 Percentage 95 100 98.

93% customers were satisfied with the display and arrangement of goods in Warana Bazaar. There was a suggestion for the display of ayurvedic medicines with the amount to be consumed at a time and also the purpose for which it has to be consumed. 101 | P a g e .3333333 6. About 7% customers were satisfied to some extent with the display and arrangement of goods. Also one customer suggested changing the outer showcase displays as those were too old.Particulars Yes To some extent No Total TABLE NO: 28 Display of Goods Frequency 56 4 0 60 Percentage 93.66666667 0 100 Figure: 15 When the customers were surveyed for the display and arrangement of goods in Warana Bazaar.

102 | P a g e .33333333 0 100 Figure: 16 When the customers were surveyed for the product mix satisfaction they get from Warana Bazaar.TABLE NO: 29 Product Mix Satisfaction Particulars Frequency Yes 58 To some extent 2 No 0 Total 60 Percentage 96. only 3% were satisfied to some extent. it was seen that about 97% of the customers were satisfied with the product mix available in Warana Bazaar.6666667 3.

Chapter V

Findings and Recommendations

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Findings: a. After studying the progress of Warana Co-operative Complex, it was seen that the development just matched the development of South Korea’s Lucky Gold Star Group which started its development with a cosmetic factory which continued with development of plastic industry and reached upto manufacture of satellite communications. Similarly the development of Warana Co-operative Complex started with the development of Warana Co-operative Sugar Factory and continued with the development of other organizations such as Warana Dairy, Warana Bank, Warana Bazaar, Warana Poultry, Warana Educational Complex, etc. This was the vision of Shri. Tatyasaheb Kore to establish such organizations and his role to convert these dreams into reality was worthy. b. After studying these organizations it was seen that the authorities and responsibilities were delegated to the respective organizational heads and without much political interference due to which any decisions could be taken effectively and which could develop professionalism. c. It was seen that the credit facility made available to the customers is not in the level which it should be. d. When the study of members was done on the basis of annual reports, it was seen that the number of members drastically increased during the year 1993 to 1995 e. The accounts department of both these organizations is working very efficiently. Each and every branch has a separate auditor who audits the accounts monthly due to which any defects in the accounts could be identified. f. The competitive advantages of Warana Bazaar and Warana Bank over their rivals are such that those can generate higher sales with higher

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margin and they can retain the existing customers and also attract new customers. g. When the SWOT analysis of Warana Bazaar and Warana Bank was performed it was seen that the strengths of both these organizations were such that these strengths can be used to take the advantage of the opportunities available and by taking the advantage of opportunities the weaknesses of these organizations could be overcomed. Also the strengths can be used to avoid the threats. h. When the response of customers was taken towards the Warana Bazaar, the overall response of customers regarding the services provided by Warana Bazaar was positive and the customers were satisfied with the product display and the product mix. Most of the customers were loyal to the Warana Bazaar because they purchased goods from bazaar since 10-15 years. i. By studying the financial aspects of these organizations, it was seen that these organizations are continuously growing as far as the sales or income and profit level is concerned. The curve of development has reached at a peak stage and also there are chances for future development. j. The use of mirrors to minimize thefts was very much interesting concept which is applied in every branch. k. There were a few complaints from the Agro Service Centre Department regarding the services provided by them. Conclusion: Warana Bazaar and Warana Bank are functioning as envisioned by Shri. Tatyasaheb Kore and it seems that the future generation of Shri. Tatyasaheb Kore i.e. Shri Vinayraoji Kore and Nipunraoji Kore, both are

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4. 106 | P a g e . The number of employees in some branches should be increased by calculating the profitability of that branch. • The outer display of Warana Bazaar should be changed and should be made attractive which will attract more and more customers. The area under the departmental stores should be increased to avoid congestion during the purchase. After the study it was seen that the credit facility given to the customers was not enough which has to be increased. Recommendations: Warana Bazaar: 1.managing these organizations very efficiently without much political interference. 3. The area of Warana Bazaar’s main branch should be increased so that it will become comfortable for the customers to purchase goods. The exterior of the store should be changed so that the customers will be attracted for the purchase. Thus we can conclude that the future of Warana Bazaar and Warana Bank is very much bright. 2. In some branches number of employees should be increased to give better services to the customers. During the customer satisfaction survey few suggestions were given by the customers: • • • The ayurvedic medicines which are kept in Bazaar should be labeled for their use and the quantity to be consumed.

The inventory level of branches should be checked time to time so that the cost on inventory will be minimized. The bazaar should pay attention to the Agro Service Centre where there are few complaints of the customers regarding the services provided by them to avoid negative publicity. 9. The store should expand its product range and add newer categories in it like furniture etc. The interface between the producers and consumers should be improved. 6. 10. Warana Bank should use the funds for promoting more local projects in the area. 2. Warana Bank should increase the number of Biometric Cash Dispensing Machines (ATM’s) as early as possible. The bazaar should plan for installing close circuit cameras in order to minimize thefts in the bazaar. 11.5. 7. 8. 107 | P a g e . Bar code system should be immediately applied in different branches to increase the efficiency of work. Warana Bank: 1. The credit facilities should be increased for the consumers (members).

Nilakantan Rahul. 1999. 7. “Bonhooghly Fishermen’s Cooperative Society: Beginning of an Indian ‘Lucky Goldstar?”. Bhate Rucha. Warana Bazaar. New Delhi. Tatyasaheb Kore. Datta Samar K.R. Paper presented to a Symposium on ‘Cooperative Governance’ at Institute of Rural Management (IRMA). 2003. Research Methods in Social Sciences and Extension Education. December. Vol. Ltd. 4. 1997. “Cooperative Reforms: Light at the end of the tunnel?” 108 | P a g e . 3. 1st edition. New Delhi. ‘My Journey through Cooperatives and Beyond. An autobiography of Shri. Page Number 1. Kothari C.In search of a Governance Structure for Stakeholder Cooperation’. 5.The Reference Matter: Bibliography 1. Research methodology. Datta Samar K (2005). Kalyani Publishers. Mondal Sagar. Silver Jubilee Year. 2004. (2005). [Mi ek Karyakarta(in Marathi). Vikas Publishing House Pvt. I and II]. Ray G L. Datta Samar K (2004). 2. 6. 3rd edition.

Locality: 3. Which benefit do you get from purchase form Warana Bazaar? Reasonable rate Assured weight Good quality Credit facility Variety choices At door step 109 | P a g e . Phone No: 4. Occupation: 12th Pass Graduate Post Graduate 7. Total monthly expenses on domestic goods (Rs): 500 500-1000 1000-2000 2000-5000 8.Appendix: Questionnaire: Date: 1. Qualification: 20-30 30-40 Above 40 Illiterate 6. Age Group: Below 20 5. You like to purchase goods from: Departmental store (Warana Bazaar) Provisional Store Small Retail shop 9. Name : 2.

10.Are you satisfied with the overall service of the Bazaar? Yes To some extent No 17.Does Warana Bazaars’ product mix satisfy your all needs with respect to variety and price? Yes To some extent No 18.Since when did you start purchasing from Warana Bazaar? 13.Are you satisfied with the after sales service of the Bazaar? Yes To some extent No 16.Are you satisfied with the staff and sales people in the Bazaar? Yes To some extent No 15.Do you like to purchase goods by self-service system in Warana Bazaar? Yes To some extent No 11.How far do you like the system of display of goods in Warana Bazaar? Yes To some extent No 14.Would you like to give any suggestions for Warana Bazaar? 110 | P a g e .Are you satisfied with purchasing in self service shop? Yes To some extent No 12.

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