LDS0048

Lijjat Papad: Balancing Lives and Livelihood of

Workers during COVID-19 Pandemic
“It gives women the flexibility to carry out their household chores and look after their
children while also working and earning.”
– Swati Paradkar, president, Shri Mahila Griha Udyog Lijjat Papad, in 2021.1

INTRODUCTION
In February 2019, Ashutosh Gowariker, a popular Indian film maker, announced that he would be
making a film on Shri Mahila Griha Udyog Lijjat Papad (SMGULP, popularly known as Lijjat
Papad), a cooperative women’s enterprise in India. The film would bring on screen the tale of
women empowerment and how the women’s cooperative group went on to establish a monopoly in
the commercial papad2 market. Commenting on the news, Swati R Paradkar (Paradkar), president
of SMGULP, said, “More people will now know about the brand. And hopefully we will be able to
cast a wider net in the future.”3
Started in 1959 by seven women workers in Mumbai with an investment of Rs. 80, SMGULP
went on to become a Rs.16 billion entity, which had 45000 workers as of the end of 2020. It sold
more than four billion papads annually, in addition to hand-rolled chapatis, masalas, and detergents
(Refer to Table I for SMGULP’s products).
From the start, SMGULP allowed its women workers to work from home. Along with that, it
enabled them to become ‘co-owners’ of the enterprise. The job did not require formal education
and the organization created opportunities for multitudes of Indian women to become financially
independent. By allowing the women to work from home, SMGULP enabled them to earn while
taking care of their children. Some women workers were able to earn more than their spouse.
During the COVID-19 lockdown, the organization carried out its operations while abiding by
government instructions. As a precautionary measure, SMGULP hired Flying squads4 to check the
sanitization process and quality of the product and working environment of the women workers
(Refer to Figure I).

1
Natasha Rego, “Rolling out a revolution: 62 years of Lijjat Papad,” www.hindustantimes.com, February
26, 2021.
2
A papadum, appalam, or papad is a seasoned flatbread made from dried dough of black gram bean flour,
which is either fried or cooked with dry heat (flipped over an open flame) until crunchy. Other flours
made from lentils, chickpeas, rice, tapioca, millet or potato are also used.
3
Ibid.
4
Flying squad refers to a division of a police force or other organization which is capable of reaching an
incident quickly.
This case study was written by Smita Ray, under the direction of Sanjib Dutta, IBS Hyderabad. It is intended to be used as the basis for class
discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources.
© 2021, IBSCDC.
No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of
the copyright owner.
License to use for the Class of 2022,
MBA-Semester – IV, IBS Hyderabad.
Course: Public Policy
 Lijjat Papad: Balancing Lives and Livelihood of Workers during COVID-19 Pandemic

Table I: SMGULP Products

Category Products
Papad Udad with Red Chilies, Udad Special, Moong Special (50% Udad & 50%
Moong), Punjabi Masala Special
Traditional Black Pepper Powder, Guntur Hot Chili Powder, Premium Chili Powder,
Masala Kashmiri Chili Powder, Turmeric Powder, Coriander Powder, Cumin Powder,
Black Pepper Blended Powder
Ready Mix Pav-Bhaji Masala, Meat Masala, Punjabi Chhole Masala, Chana Masala, Chat
Masala Masala, Biryani Pulav Masala, Sambar Masala, Pani-Puri Masala, Jaljeera
Powder, Special Sunday Masala, Fish Masala, Chicken Masala, Shahi Garam
Masala, Meat Masala
Jeera Papad Jeera Papad
Appalam Appalam
Gehu Atta Gehu Atta
Chapati Chapati
Detergent Detergent Powder, Liquid soap, Laundry Soap, Dish wash Bar
Source: www.lijjat.com

Figure I: Surprise Visit by SMGULP’s Flying Squad During COVID – 19

Source: Anurag Bende, “Lijjat’s surprise visit pays close look at hygiene of makers,” www.punemirror.
indiatimes.com, September 16, 2020.

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 Lijjat Papad: Balancing Lives and Livelihood of Workers during COVID-19 Pandemic

COMPANY BACKGROUND

In March 1959, seven semi-literate women from Gujarat came together to supplement their family
incomes and create a sustainable source of employment for themselves with the skill they had –
cooking. The seven women were Jaswantiben Jamnadas Popat, Parvatiben Ramdas Thodani,
Ujamben Narandas Kundalia, Banuben. N. Tanna, Laguben Amritlar Gokani, Jayaben V.
Vithalani, and one more woman whose name is not known. They started out on the terrace of a
large, old, residential building called Lohana Niwas in Girgaum, a thickly populated area in south
Mumbai. This is where the seven housewives, bored and confined to their homes, saw an
opportunity to set up an organization. Entrepreneurship was something these women had never
heard of. The venture was immensely successful and marked the genesis of a cooperative “for the
women, by the women and of the women.”
In 1959, these women borrowed Rs 80 from Chaganlal Karamsi Parekh, a member of the Servants of
India Society and a social worker. This debt had to be returned within a stipulated period of time.
The women commenced business by selling papads to a merchant known to them. Gradually, they
bought a cupboard to store raw materials and utensils on the terrace. In the first year, they had to stop
production during the rainy season as the papads couldn’t be left outside to dry. To solve this
problem, they bought a cot and a stove before the next rainy season. The papads were placed on the
cot inside a room with the stove below it so that the process of drying could take place in spite of the
rains. Within three months, there were about 25 women making papads, and within six months, they
were able to reward themselves with half a gram of gold each with the profit they had made.
The group gained considerable publicity through word-of-mouth and through articles in vernacular
newspapers. By the second year of its formation, 100 to 150 women had joined the group, and by
the end of the third year more than 300 women were rolling out the papads. These women took the
kneaded flour home, rolled them into flat cakes, dried them, and brought back the dried papads in a
day or two. These were then packaged and sold. Since the beginning, all the members were aware
of the importance of running the cooperative as a business enterprise, keeping a constant vigil on
every aspect of its working and maintaining accounts properly. In 1962, the name Lijjat was
chosen by the group for its products. The organization was named Shri Mahila Griha Udyog Lijjat
Papad. By 1962-63, its annual sales of papads touched Rs.0.18 million.
In July 1966, SMGULP was registered as a society under the Societies Registration Act 1860. In
September 1966, it was formally recognized as a unit belonging to the ‘processing of cereals and
pulses industry group’ under the Khadi and Village Industries Act. It was also acknowledged by
the Khadi and Village Industries Commission (KVIC) as a “village industry.” In 1966, SMGULP
was granted a working capital of Rs. 0.8 million by KVIC in addition to tax exemptions. It was
also registered under the Bombay Public Trusts Act, 1950, as a Public Trust.
In 1966, SMGULP evolved into a formal organization Exhibit I:
and the member-sisters (as they were referred to)
adopted its first written constitution. The logo chosen Logo of SMGULP
read, “Symbol of Women’s Strength” (Refer to Exhibit
I). Only women could become members of the
organization; men could not become members and did
not have any ownership rights. Men working in
SMGULP provided only functional support.
The first branch of Lijjat Papad was set up in Valod,
Gujarat, in May 1968. Whenever a new branch was
established, a few member-sisters from the established
branches stayed for a while (they took turns doing so)
and trained the new member-sisters who had joined the
branch. Once the new member-sisters had learnt how to Source: www.lijjat.com

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 Lijjat Papad: Balancing Lives and Livelihood of Workers during COVID-19 Pandemic

run the branch and monitor its activities, the branch began functioning as an independent entity. In
this manner, branches were established in all states. The first branch set up in any state, helped the
other branches that opened subsequently in that state. The central office in Bombay (now Mumbai)
had the over-all responsibility for the functioning of all the branches.
As of December 2020, SMGULP operated through 83 branches in 17 states of India and offered
employment to 45,000 women throughout the country. It also exported its products through
Merchant Exporters to various countries like the USA, the UK, France, Germany, Italy, the Middle
East, Thailand, Singapore, Hongkong, the Netherlands, Japan, Canada, Australia, South Africa,
and many others. In order to meet its social responsibility, SMGULP provided scholarships every
year to the children of the sister-members who had passed the 10th and 12th standard
examinations. Over the years, the organization received various awards like ‘Businesswomen of
the Year 2001-02 for Corporate Excellence’, Best Village Industries’, 'Brand Equity Award',
'Outstanding Service Organisation Award-2012, National Award as ‘Best Village Industries
Institution for 2012-13’, 'The Greatest Marketing Influencers Award 2018', ‘Prestigious Social
Work Excellence Award-2019’ and many more.

OPERATIONS

Since operations began in 1959, SMGULP had allowed its women workers to work from home.
Before allowing the worker to work from home, SMGULP satisfied itself on the cleanliness of the
worker’s house and ensured there was a separate place for preparing the papads. Every member
was trained to make the perfect Lijjat papad. If any member was unable to meet the quality
standards, then she was assigned to some other work like packaging. To ensure the quality of the
product, the organization had a rigorous quality check process. If during testing, any lot was found
to be below standard, the entire lot was destroyed.
The entire organization was decentralized and managed by a committee of 21 members. The
managing committee also had the power to close down any branch which it considered as “not
working as per the principles of the institution.” The various branches situated all over the country
were managed in a decentralized manner. The Sanchalika or director of a branch was selected by
the members of the concerned branch every three years. She was responsible for managing the
day-today-activities of that particular branch or division. She could be transferred to other
branches also. SMGULP believed in equal sharing of profits among all the members of a branch.
The decentralization gave the branches the power to carry out the quality checks and the
responsibility to maintain accounts. All the members (called Behn) were owners of this movement
and this automatically ensured greater accountability.
Sustaining Operations during COVID – 19 Pandemic
Even though SMGULP offered the work from home facility to its women employees, its
production cycle came to a halt after the announcement of a nationwide lockdown in March 2020
to curb the spread of the COVID-19 pandemic. SMGULP had to stop production for two months.
As a result, the women associated with the organization, mostly belonging to the economically
weaker sections of the society, also lost their source of income. To provide support to the workers,
the managing committee deposited small sums of money into each member’s bank account.
During the unlock phase of the pandemic, the company tried to maintain a balance between unified
production and the sanitized quality of the homemade papad or papadum variety. Keeping in mind
the COVID–19 situation prevailing in the country, SMGULP resumed its production by ensuring
various steps like sanitizing all the branches before starting the operation. The women were called
to the centers on alternate days. Flying squads were hired to check on its employees rolling out
papads in their homes and to ensure their residences did not fall under containment zones and that
they did not have any COVID-19 patient at home. The visiting flying squads consisted of women

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 Lijjat Papad: Balancing Lives and Livelihood of Workers during COVID-19 Pandemic

from the cooperative body, who were allocated different areas to inspect. These teams were
assigned to check whether the workers were making the papads in a COVID-19-free environment
without compromising on the quality of the product.
Describing the role of the Flying squad, Chetana Nahar, director of the organization’s Sinhagad
Road Unit, SMGULP, said, “The inspecting teams know the addresses of the workers associated
with the brand and visit them without informing them about the process in advance. The purpose
of the visit is to make sure that these women working with us are not staying in containment zones
declared by the civic administration. The flying squads also check if anyone from the worker’s
family is diagnosed with COVID-19. If we zero in on such a case, we ask the worker concerned to
take a break till her kin recovers or the area is dropped from the containment list.”5 These teams
not only checked the quality of the product and the environment in which the employee worked,
but also created awareness about the precautions that the women needed to take in the face of the
ongoing pandemic. Explaining what happened during a visit, Ranjana Jore, a member of the flying
squad of SMGULP said, “When we make house visits, we make sure that the women have
disinfectants at home. We also educate them on how to cover their face while making papads. and
maintain hygiene during the virus outbreak. We also survey the area to check if there is a rise in
COVID -19 cases in the locality.”6
Before the pandemic, the cooperative offered bus services in different cities to its workers from
different areas to the branch offices to procure the raw material. But due to the pandemic, bus services
were suspended. As it was difficult to maintain social distancing in buses, the company workers were
asked to make their own arrangements to collect the raw materials from the offices. In case someone
lived in a containment zone, then she was asked to discontinue work temporarily. Sharing her personal
experience during the COVID – 19 pandemic, Savita Memane, a worker of SMGULP, said, “After I
lost my husband, I started making papad for Lijjat to earn a living. There was a break in production
for a few months due to the lockdown, hindering my livelihood. Now that work has resumed, I am
ready to make any adjustments to ensure hygiene and keep making papads.”7
Although the COVID-19 lockdown had a negative impact on the sales of Lijjat Papad, the
organization continued to operate in the same way as it had earlier. It continued to recruit through
newspaper ads. New recruits who joined as papad rollers, were trained on sizing and quality
standards. They picked up the dough from a nearby center, rolled out and dried the papads at
home, returned them the next day, and collected their payment immediately. Much of the papad
making was done by hand. Said Paradkar, “If we start using machines, we won’t be able to
generate employment for so many women.”8

FUTURE PLANS

The company’s success was achieved through teamwork, profit sharing, selflessness, and respect
for human dignity. Experts opined that SMGULP had proved that organizations that shared their
profits with their employees and were driven by noble goals could be successful. Looking at the
growth of the company and the demand from customers, SMGULP planned to diversify its product
portfolio by adding new products like instant noodles and to adopt automation. The organization
also had plans to increase its exports. The Government of India also took note of the contribution
made by SMGULP in uplifting the social and economic status of women. It urged the company to

5
Anurag Bende, “Lijjat’s surprise visit pays close look at hygiene of makers,” www.punemirror.
indiatimes.com, September 16, 2020.
6
Ibid.
7
Ibid.
8
Natasha Rego, “Rolling out a revolution: 62 years of Lijjat Papad,” www.hindustantimes.com, February
26, 2021.

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 Lijjat Papad: Balancing Lives and Livelihood of Workers during COVID-19 Pandemic

add new products through automation through which it would be able to provide more
employment to women staying in the backward areas. The government also wanted Lijjat to have
its own outlets for which it said it was ready to provide all the necessary assistance to ensure
women got finance from banks without collaterals.9 SMGULP also joined hands with the
Maharashtra government to make the state beggar free by providing employment to as many
women as possible.

Suggested Readings and references:

1. “Crunch Time: How Lijjat Papad Spun the Feminist Success Story,”
www.deccanherald.com, April 15, 2021.
2. “Lijjat Papad: How 7 Women Wrote a Success Story with Only Rs 80 for Seed
Capital,” www.livemint.com, April 15, 2021.
3. Natasha Rego, “Rolling out a revolution: 62 years of LijjatPapad,”
www.hindustantimes.com, February 26, 2021.
4. “Kiara Advani to play the face of Lijjat Papad in Ashutosh Gowariker’s Karram
Kurram,” www.hindustantimes.com, December 4, 2020.
5. “Lijjat Papad Company – A Story of Women Empowerment,”
www.news.badabusiness.com, august 13, 2020.
6. Gopi Karelia, “The 7 Women Behind India's Favourite LijjatPapad,” www.thebetter
india.com, July 14, 2020.
7. Shraddha Kamdar, “The Journey of your Favourite Lijjat Papad,” www.femina.in,
March 20, 2020.
8. “Shri Mahila Griha Udyog Lijjat ... vs Arunaben Arvindbhai Chaudhary,”
www.indiankanoon.org, February 12, 2020.
9. Chaitra Anand, “The Amazing Lijjat Papad Story: From Rs 80 to Rs 800 Crore,”
www.in.style.yahoo.com, September 4, 2018.
10. Vicky Pathare, “New Drive Aims to Make Maharashtra First Beggar-free State in the
Country,” www.punemirror.indiatimes.com, February 5, 2018.
11. “Women spirit wins: A case study of Lijjat Papad,” www.allresearchjournal.com,
January 18, 2016.
12. “Lijjat Papad: A Brand with a Cause,” www.marketingpractice.blogspot.com, December
3, 2006.
13. M Ramanathan, “Shri Mahila Griha Udyog Lijjat Papad,” www.jstor.org, 2004
14. “Great Story of Shri Mahila Griha Udyog Lijjat,” www.caclubindia.com.
15. www.lijjat.com

9
“Minister proposes product diversification for Lijjat,” www.retail.economictimes.indiatimes.com,
September 16, 2017.