Many of the earliest consumer cooperatives were set up in the beginning of the century in India, but they received recognition under the cooperative law only in 1912. Thereafter from time to timer, particular under conditions of the emergency like wars, the consumer cooperatives were set up in urban areas. However, in the absence of business-like approach and perspective, their development has all along been on a faultering basis.
Their operations remained largely restricted to distribution of rationed and controlled commodities. Therefore, when normalcy returned, the activities of consumer cooperatives automatically got diminished and consequently, mortality of these cooperative outlets increased.
The Structure
The consumer cooperative program was, however, taken up on larger scale following the Chinese aggression in October 1962, the Government accelerated the Centrally sponsored Scheme of Consumers Cooperatives.
The cooperative department stores in India were encouraged under the accelerated program of the Central Government, initiated for revitalizing consumer movement.
As stated above, during the part devaluation era, the cooperative department stores were started in metropolitan cities and towns under the patronage of the Union Government. Initially, 43 super bazaars (department stores ) were planned to cover metropolitan cities and towns having population to ensure equitable distribution of essential consumer goods to general public, at fair prices, regularly. Their number has been growing since 1966; by the end of June 1985 their strength was raised from 330 to 700.
The wholesales/central consumer cooperatives have set up such departments stores. Generally, they are set up at the rate of one per city/town except in the case of metropolitan cities where their number is more then one. About 63% of the department stores are located in Karnataka, Tamil Nadu, Andhra Pradesh, Kerala, West Bengal, Maharashtra and New Delhi. The largest number was in Karnataka, Tamil Nadu and Maharashtra.
Size and Performance
The size of the department stores varies from 2,000 sq. ft. 70,000 sq. ft. of selling area. They deal in a wide range of consumer articles, groceries, cosmetics and toilet articles. Household goods, textiles, ready-made garments, drugs and medicines, etc. Many of them sell fruits and vegetables, eggs, fish and meat and also run cafeterias. They are enabled to have an attractive layout, shop design, with artistic display of goods, sold at fixed prices and on cash basis. They follow modern sales techniques and have introduced consumer aids and facilities, such as, pre-packing of goods, price marking, etc. About 20 to 25 department stores have introduced, self-service in the grocery section. The sales turnover of the department stores for the year ending 1984 was about Rs.130 crores.
Nature of Organization
The cooperative department stores have been given attractive names like “Sahakari Bhandar”, “Sahakari Bazaar”, “Apna Bazaar”, “Chintamani Kalpataru”, “Kalpalata”, “Kamdhenu”, etc.
The department stores, super bazaar or super market is an institution that originated in Western countries, especially in, the U.S.A. during the thirties- the depression period. The U.S. Government has increased the prices of consumer goods to revive the economy and this led the retailers to open super markets out of necessity of cutting distribution costs at retail level. Self-service sections were opened in the shop to keep service charges down. Only food and groceries were handled by the super market.
The department stores are technically different from the super market. The merchandise of the early department store was only dry gods. Later, other lines were added. The stores are now comprised of many departments. By definition, the department store is a retail stores, carrying a general line of apparel, furnishings, major household appliances and house-wares. These are arranged in separate sections or departments. However, the functions are integrated under single management.
Assessment
By and large, the cooperative department stores have so far not presented a very encouraging image of themselves. The Super Bazaar, Delhi, for example, started in July 1966 with a floor area of about 1 lacs. sq. ft. was not till recently recording profits. It was because of the high overhead expenses. However, it lacks cooperative character in the sense that member participation in management (democratic functioning) is still too distant a goal for it. It is essential to not in case of a cooperative department store that it is not enough for it to show mere profits (though it is necessary that it does not occur losses). It must also reflect the basic cooperative character, if it is to become a model cooperative store – totally owned by consumers and managed by them for themselves.
Correspondingly, the Chintamani Cooperative Department Store at Coimbatore can be considered as one of the well managed cooperative stores. It was started in November 1984 and by 1986 its total sales turnover was Rs. 14 crores. This is a remarkable performance for a cooperative store located at district level. Its gross margin of profit was as low as 6% of sales and it had secured confidence of the public by the sale of pure, unadulterated, standards goods and efficient service. The management expenses have been around 5 % of the sales which is a record in the country for other similar organizations to emulate. Apart from selling consumer goods, it processes agricultural commodities, and manufacturers hosiery goods. It has its own arrangement for training its staff. But such examples are rare and great majority of them are seen limping, in different parts of the country, for lack of proper management, qualified and satisfied staff, clear-cut policies regarding assortment, purchases, pricing, etc.
Usually, families with an income of Rs. 200 to 500 should be of main interest to the cooperative department stores. The location of the stores must be ideal, so that it is within the reach of buyers in the intended income groups. Efficient and economical customer-service can alone build up stable custom of its members and potential members. A large underpaid, untrained disgruntled staff may not help in achieving these objectives and any economy on this account, it must be realized, would be bad for the future of the stores.
Assortment Policy and Service
It is extremely necessary that their assortment policy must take care of the core clientele. It is not desirable that anything and everything should be purchased, disregarding the needs of the majority of the customer members. Neglect of this has resulted in stock-pilling in many stores, locking up consequently their mearge financial resources. Smaller sales turnover, increased overhead expenses, poor salesmanship, have mainly contributed to the loses of a large number of cooperative department stores in the country. Non-competitive prices and sometimes non-availability of required goods (stock outs0 have also been responsible for their losses. Credit sales to members are not generally recommended in developing countries, because they add to their cost of management with the attendant risk of non-payments on due dates.
The factors such as availability of all goods in demand, good service, convenient location, reasonable prices, quality in relation to price are responsible for increased patronage of the customers. On the other hand, non-availability of goofs, indifference of sales staff, inconvenient location, unreasonable prices are factors that affect their business adversely. Intelligent determination of level inventories, keeping in mind the nature of demand, can immensely contribute to economy in cost of management and business. This is not adequately understood by a good many of the cooperative department stores in the country.
Cooperative Character
The cooperative character of the department store must also be progressively reflected in the nature of business conducted by cooperatives to justify their existence as cooperatives. The share of members in the business, their participation in annual meetings, a clear-cut demarcation between policy-making and its implementation go a long way in preserving and much emphasized cooperative character of a department store.
These stores handle ‘consumer groups’ of articles and also ‘essential groups’ of articles. The former include semi-durable and durable goods which middle class consumers ordinarily require (textiles, household articles, toilet articles, etc.) The latter include wheat, rice, edible oils, pulses, spices, etc. Both these require different managerial skills, organizational set-up and orientation of the personnel. Further these stores are linked with the federations of consumers cooperatives at higher levels from whom they should receive supplies and services of various types, on time and as far as possible at a small service-charge. Extraordinary emphasis on sale of confiscated goods (imported smuggled goods) made available to them by the Government has only contributed to distortion of their basic objectives, apart from bringing in the undesirable elements, at times, of corruption.
Vast Potential
The cooperative department stores are no doubt needed for protection and promotion of interest of the helpless consumers in urban areas. They can, on the basis of strength, provide shape and proper direction to the unorganized retail trade in the country. This has become extremely urgent. There is, therefore, huge potential available for such stores. They should however be organized after a careful feasibility study, and be well managed.
Government support and encouragement may be considered welcome from this angle. However, it will be in the interest of the consumer members themselves to treat it as a transitional phase. They must free themselves from the Government crutches as early as possible and become self-reliant to have their policies formulated independently and pragmatically in tune with the market requirements.
AN OVERVIEW OF THE HISTORY :
Apna Bazaar Co-operative was started on 1st May 1948 as a small departmental store at Naigoan, Mumbai. In the early period of post independence era, cloth purchase was on the rationing basis and many restrictions such as import ban were imposed by the British Government were still continued. To overcome this obstacle mill workers in Mumbai organized grocery and cloth store by collective efforts which was named as Mumbai Kamgar Madhyawarti Grahak Sahakari Mandal Ltd. Shri Dadasaheb Sarfare was the core person behind the founding, organizing and upliftment of this co-operative society. Gradually year after year this store was developed into 7 department store. The mill workers used to spare time from their shifting duties and devote themselves in contributing to the functions of this cooperative to meet its objective of satisfying food and clothing needs of the lower middle class people dwelling in the south of Mumbai city.
During years later many members purchased shares and invested gradually resulting into tremendous expansion and diversification of the organization. At present the administrative and departmental store at Naigaon is 34 years old.
The labour strikes in the initial stages were influnced by Sampoorna Community i.e Praja Samajwadi Paksh.
The core value of the organization is to provide quality products at a cheaper rate at proper standards.
Total number of employees working the Apna Bazaar all over Mumbai is 850.
ESTABLISHMENTS:
Apna Bazaar has Seven Department Stores at Naigaon, Fort, Andheri, Mulund, Vashi, Thane and Ratnagiri, 28 Retail outlets and 6 Medical Shops extend services in Mumbai. Super Market at Deorukh and Retail outlets at Alore, Bhagvati (Ratnagiri) and Tarapore provides services to consumers in Rural Kokan areas. Fleet of 12 Mobile Van shops cater to the needs of consumers at their doors. There are 13 vehicles of the main Naigaon department used for procurement of commodities. Processing units in spices, pulses and pickles at Taloja and Bakery unit at Nerul supply quality products. Wholesale purchase unit at Turbhe in A.P.M.C., Vashi and Naigaon units supply at wholesale rates to various companies and Industrial establishments. All the activities including milk plants at Chalisgaon and Kudachi (Karnataka) achieved turnover of 147 crores.
MANAGEMENT:
Chairman and Secretaries of Branch Committees and Sr. Officers of the society are invited to participate in monthly meeting of the Managing Committee and various projects, management issues and policy matters are discussed and final decisions are arrived for implementation.
The Office Bearers and Sr. Officers of the organization meet weekly to consider the issues in respect of management and heavy expenditure items and recommend the proposals for final approval of the managing committee of the organization.
ACTIVITES UNDERTAKEN BY APNA BAZAAR
APNA INSTITUTIONAL COMPLEX :
Apna Bazaar has been developed on account of continuous and devoted members and nearly 350 members are actively involved. Various sub-committee were constituted for specific functions such as Branch Advisory Committee, Milk Project Committee, Production Committee, Budget Committee, Printing Committee, Respective members execute specific work assigned to them.
It may be noted that success achieved by Apna Bazaar is due to dedicated and devoted 350 co-operators, 150 efficient officers and 1500 honest and hard working employees and effective and sincere efforts of 2000 persons towards developmental activities.
CONTRIBUTION TO NATIONAL ECONOMY :
The consumers co-operative sector has been playing a very vital role in National Economy. Apna Bazaar Society’s contribution to employment generation and revenue contribution is appreciated by the State Givernment.
In accordance with policy of free Economy there are drastic changes in economic system. Planning Commission under the current Government authority ahs not provided specific rate top co-operative sector in 8th Five Year Plan hence State Government is not clear in respect of co-operative policy in this regard. To overcome this situation Apna Bazaar has started the principles of Market Economy. But there too the organization along with other consumers cooperative has face problems such as where after GATT Agreement, multinational companies being eligible for various facilities which are available in Market Economy of developing countries like India.
Multi National companies have large Department Stores in developing countries, many of them are set up at some metropolitan here in India and it would be very difficult for Apna Bazaar if these MNCs begin there business at its level. The main reason is that these companies obtain funds at the rate of interest 3% to 4%, but domestic cooperatives are getting loan at 13% or higher rate of interest and this difference between interest rate may adversely affect their profitability.
Structure of the market is undergoing a rapid change as companies from Middle East are setting up their chain for providing services in distribution and they have already captured Delhi Market. Hence in order to strengthen its position in market economy, it became essential for Apna Bazaar to modernize its branches and department stores. The quality, availability and prices of articles are watched carefully and priority is given to build its own capital. According to its philosophy, it is not be possible to stand in free market without supplying different and prompt services in attractive packages and maintaining adequate and appropriate stocks timely.
APNA BAZAAR ON WHEEL :
Apna Department Store has completed 9 years and it has been increasing its monthly sales. Apna Bazaar on wheel was introduced to serve consumers in Ratnagiri. Sales of Mobile Van Shop has been increasing and within a month daily sales amounted to average of Rs. 8500/-.
FESTIVAL SALES OF APNA BAZAAR :
Festival Sales of Apna Bazaar Production is organized during the festival seasons every year where consumers are awarded ‘Gifts’ against purchases of production items. A survey is also conducted to have feed back of customers about Apna Bazaar production. During the celebration of Sale Festival sale of Apna Bazaar Production increases at a tremendous rate.
MILK PROJECT :
Apna Bazaar is distributing whole standard cow milk in Bombay and New Bombay. During the last 8 years its has introduced Toned Milk which has become popular. In this period it has been distributing these variety of Milk in Nasik and Aurangabad and sales of milk has been increased in both the towns. Now it is planning to expand milk distribution activity in other cities of Maharashtra.
Apna Bazaar has introduced 200 gm & 500 gm packs of Stand-up-Pouches for selling Sahakar Ghee and Butter. The increased sales at its Department Stores and Branches. Sales of Ghe and Butter amounted to great extent. It has introduced Shrikhand and Paneer on experimental basis.
It is proposed to set up milk plant at Turbhe to supply quality milk regularly to Mumbai.
HEALTH SERVICES :
To benefit the consumers, Dada Sarfare Aarogya Kendra organizes number of health camps every year to detect Diabatic, women diseases. Check-up of Eye, Tooth, Ear, Nose, Throat, Leprosy, Family Welfare etc. Free advice was available in camps and various other services is extended to a large number of patients.
TRAINING PROGRAMS :
Training workshop for management trainees is undertaken which is jointly organized by International Co-operative Alliance and N.C.C.F at Tata Insitute of Social Science, Mumbai. Training programs for salesmen are organized at Apna Bazaar, Naigaon and Andheri.
CO-OPERATION BETWEEN OFFICERS AND OTHER STAFF :
In achievement of target Annual turnover of business, the role of officers as well as other members of staff is very important. To execute successfully any project, the officers and other employees extend their co-operation. Hence the planned programs are timely executed and recognized Union Bhartiya Kamgar Sena also extends effective co-operation.
MULTINATIONAL APPROACH OF APNA BAZAAR
Apna Bazaar has been trying through years for increasing its sales. As the matter of fact, in the last few years it has kept its primitive methodology aside and headed towards the adoption of the new methods as some private sector giants and multinational companies have been doing in their business professional techniques. It should be noticed that Apna Bazaar have already started using this method to reach its customers.
While selling products from stores and branches, servicemen treat the customers with extra care, contacts and converse with them about the new products and their benefits, tries to comprehend the likes and dislikes of the customers, attains their complaints and grievance. The branch manager sees to it that they are satisfied. Customers requiring home delivery are met with the executives of the society and are convinced about the new schemes for their benefits. The principle of multinational such as ‘to know your customer, you must first reach him’ is identified and followed by the society.
While functions as a distributor, it is essential that markets abroad are also managed along with the domestic markets. Understanding this the society has started export unit few years ago in order to surge the business opportunities abroad for increasing sales.
Through various public meeting, both monthly and cultural, brainstorming is practiced regarding how the sale can be boosted and appropriate solutions for the same are worked out. Rather than only placing the question, the solution to the problems are given more value and treatment.
Executives and members in the society are trained to study the business standards and working out the way by which the profit figures can be boosted as well as to be alert to face any situation. Service-men are trained to develop their decision making power and to be competitive.
Unlike private entrepreneurs who publicize for building their image in the market, Apna Bazaar adopts a practical way of providing its customers with loyalty card called ‘Akshay Plus’. Making profit by exploiting people of the various classes, is of-course not the ultimate aim of the society, because “social welfare” are its two golden words. But “Survival of the fittest” are the ideal thoughts which leads the society for being as the top consumer co-operative society of the state.
CHALLENGES OF FUTURE:
Inspite of inadequate and irregular supply of essential commodities in market and changing economic conditions on account of economic liberalization in the country, Apna Bazar has achieved record sales turnover of Rs.147 crores and created land mark in consumers co-operatives in India. It has challenging tasks to face for achieving further developments.
The Consumers co-operative have to make efforts to increase their impact effectively in retailing activities of the total market. To attract the consumers towards co-operatives, special efforts by consumers and co-operators should be effectively directed and challenging tasks can be attended by all of its members for the stability of their organization in the market.
EMPLOYMENT OPPORTUNITIES BY APNA BAZAAR :
Due to the Apna Bazaar Co-operative Stores not only the niche traders are benefited but employment opportunities for youths have become possible.
This society founded by Dadasaheb Sarfare has achieved immense co-operation during the past years. As Mumbai city has been growing, Apna Bazaar came up with the idea of franchise-ship, and gradually created land-mark in expansion of franchisee business. The principle of Co-operative Governance was implemented and new co-operatives were established through franchisee branches.
THE STRUCTURE :
Shri Mahila Griha Udyog, the makers of the famous Lijjat Papad, is an organisation which symbolises the strength of a woman. All the women members are jointly the owners of the organisation and are fondly referred to as 'sisters'. There is a central managing committee of 21 members to manage the affairs of the organisation.
The organisation is wide-spread, with it's Central Office at Mumbai and it's 60 centers and 40 divisions in different states all over India. The organisation started of with a paltry sum of Rs.80 and has achieved sales of over Rs.300 crores with exports exceeding Rs. 10 crs.
Membership has also expanded from an initial number of 7 sisters from one building to over 40,000 sisters throughout India. The organisation functions on the basis of consensus.
AN OVERVIEW OF THE HISTORY :
It all began on 15th march. 1959 which was a warm summer day with the sun shining brightly in the cloudless sky. A majority of the women inhabitants of an old residential building in Girgaum (a thickly populated area of South Bombay), were busy attending their usual domestic chores.
A few of them, seven to be exact, gathered on the terrace of the building and started a small inconspicuous function. The function ended shortly, the result - production of 4 packets of Papads and a firm resolve to continue production. This pioneer batch of 7 ladies had set the ball rolling.
As the days went by, the additions to this initial group of 7 was ever-increasing. The institution began to grow.
The early days were not easy. The institution has its trials and tribulation. The faith and patience of the members were put to test on several occasion - they had no money and started on a borrowed sum of Rs. 80/-.
Self-reliance was the policy and no monetary help was to be sought (not even voluntarily offered donations). So work started on commercial footing.
The success of the organisation stems from the efforts of it's member sisters who have withstood several hardships with unshakable belief in 'the strength of a woman'. The organisation functions on the basis of consensus.
With quality consciousness as the principle that guided production, Lijjat grew to be the flourishing and successful organisation that it is today.
CORE VALUES :
Shri Mahila Griha Udyog Lijjat Papad is synthesis of three different concepts, namely
(1) The concept of Business
(2) The concept of family
(3) The concept of Devotion
All these concept are completely and uniformly followed in this institution. As a result of this synthesis, a peculiar Lijjat way of thinking has developed therein.
The institution has adopted the concept of business from the very beginning. All its dealings are carried out on a sound, pragmatic and commercial footing - Production of quality goods and at reasonable prices. It has never and nor will it in the future, accept any charity, donation, gift or grant from any quarter. On the contrary, the member sisters donate collectively for good causes from time to time according to their capacity.
Besides the concept of business, the institution along with all it's member sisters have adopted the concept of mutual family affection, concern and trust. All affairs of the institution are dealt in a manner similar to that of a family carrying out its own daily household chores.
But the most important concept adopted by the institution is the concept of devotion. For the member sisters, employees and well wishers, the institution is never merely a place to earn one's livelihood - It is a place of worship to devote one's energy not for his or her own benefits but for the benefit of all. In this institution work is worship. The institution is open for everybody who has faith in its basis concepts.
PRODUCTS :
Shri Mahila Griha Udyog manufactures various products from Papad, Khakhra, Appalam, Masala, Vadi, Gehu Atta, Bakery Products & Chapati.
It also produces/manufactures SASA Detergent Powder, SASA Detergent Cake (Tikia), SASA Nilam Detergent Powder, SASA Liquid Detergent.
DIVERSIFICATIONS :
Shri Mahila Griha Udyog has diversified its various activities. Besides it's world famous papads, it also currently has -
A Flour division at Vashi (Mumbai) where flour is milled from Udad Dal and Moong Dal..
A Masala Division at cotton Green(along with a Quality Control Laboratory) at the same place where different kinds of spice powders like Turmeric, Chillies, Coriander and ready mix masala and like Garam masala, Tea masala, Pav-Bhaji masala, Punjabi Chole Masala etc. are prepared and packed in consumer packs.
A Printing Division also at the same place.
Lijjat Advertising Services at Girgaum (Mumbai).
A Khakra Division at Buhari (Dist-Valod).
An Export division at Wadala.
Chapati divisions at Mumbai.
A Polypropylene set-up at Kashi-Mira Road.
A Vadi producing factory at Valod.
A Bakery division at Valod.
A Detergent Powder and Cakes manufacturing unit at Dahisar and office at Borivali (Bombay).
Many of the earliest consumer cooperatives were set up in the beginning of the century in India, but they received recognition under the cooperative law only in 1912. Thereafter from time to timer, particular under conditions of the emergency like wars, the consumer cooperatives were set up in urban areas. However, in the absence of business-like approach and perspective, their development has all along been on a faultering basis.
Their operations remained largely restricted to distribution of rationed and controlled commodities. Therefore, when normalcy returned, the activities of consumer cooperatives automatically got diminished and consequently, mortality of these cooperative outlets increased.
The Structure
The consumer cooperative program was, however, taken up on larger scale following the Chinese aggression in October 1962, the Government accelerated the Centrally sponsored Scheme of Consumers Cooperatives.
The cooperative department stores in India were encouraged under the accelerated program of the Central Government, initiated for revitalizing consumer movement.
As stated above, during the part devaluation era, the cooperative department stores were started in metropolitan cities and towns under the patronage of the Union Government. Initially, 43 super bazaars (department stores ) were planned to cover metropolitan cities and towns having population to ensure equitable distribution of essential consumer goods to general public, at fair prices, regularly. Their number has been growing since 1966; by the end of June 1985 their strength was raised from 330 to 700.
The wholesales/central consumer cooperatives have set up such departments stores. Generally, they are set up at the rate of one per city/town except in the case of metropolitan cities where their number is more then one. About 63% of the department stores are located in Karnataka, Tamil Nadu, Andhra Pradesh, Kerala, West Bengal, Maharashtra and New Delhi. The largest number was in Karnataka, Tamil Nadu and Maharashtra.
Size and Performance
The size of the department stores varies from 2,000 sq. ft. 70,000 sq. ft. of selling area. They deal in a wide range of consumer articles, groceries, cosmetics and toilet articles. Household goods, textiles, ready-made garments, drugs and medicines, etc. Many of them sell fruits and vegetables, eggs, fish and meat and also run cafeterias. They are enabled to have an attractive layout, shop design, with artistic display of goods, sold at fixed prices and on cash basis. They follow modern sales techniques and have introduced consumer aids and facilities, such as, pre-packing of goods, price marking, etc. About 20 to 25 department stores have introduced, self-service in the grocery section. The sales turnover of the department stores for the year ending 1984 was about Rs.130 crores.
Nature of Organization
The cooperative department stores have been given attractive names like “Sahakari Bhandar”, “Sahakari Bazaar”, “Apna Bazaar”, “Chintamani Kalpataru”, “Kalpalata”, “Kamdhenu”, etc.
The department stores, super bazaar or super market is an institution that originated in Western countries, especially in, the U.S.A. during the thirties- the depression period. The U.S. Government has increased the prices of consumer goods to revive the economy and this led the retailers to open super markets out of necessity of cutting distribution costs at retail level. Self-service sections were opened in the shop to keep service charges down. Only food and groceries were handled by the super market.
The department stores are technically different from the super market. The merchandise of the early department store was only dry gods. Later, other lines were added. The stores are now comprised of many departments. By definition, the department store is a retail stores, carrying a general line of apparel, furnishings, major household appliances and house-wares. These are arranged in separate sections or departments. However, the functions are integrated under single management.
Assessment
By and large, the cooperative department stores have so far not presented a very encouraging image of themselves. The Super Bazaar, Delhi, for example, started in July 1966 with a floor area of about 1 lacs. sq. ft. was not till recently recording profits. It was because of the high overhead expenses. However, it lacks cooperative character in the sense that member participation in management (democratic functioning) is still too distant a goal for it. It is essential to not in case of a cooperative department store that it is not enough for it to show mere profits (though it is necessary that it does not occur losses). It must also reflect the basic cooperative character, if it is to become a model cooperative store – totally owned by consumers and managed by them for themselves.
Correspondingly, the Chintamani Cooperative Department Store at Coimbatore can be considered as one of the well managed cooperative stores. It was started in November 1984 and by 1986 its total sales turnover was Rs. 14 crores. This is a remarkable performance for a cooperative store located at district level. Its gross margin of profit was as low as 6% of sales and it had secured confidence of the public by the sale of pure, unadulterated, standards goods and efficient service. The management expenses have been around 5 % of the sales which is a record in the country for other similar organizations to emulate. Apart from selling consumer goods, it processes agricultural commodities, and manufacturers hosiery goods. It has its own arrangement for training its staff. But such examples are rare and great majority of them are seen limping, in different parts of the country, for lack of proper management, qualified and satisfied staff, clear-cut policies regarding assortment, purchases, pricing, etc.
Usually, families with an income of Rs. 200 to 500 should be of main interest to the cooperative department stores. The location of the stores must be ideal, so that it is within the reach of buyers in the intended income groups. Efficient and economical customer-service can alone build up stable custom of its members and potential members. A large underpaid, untrained disgruntled staff may not help in achieving these objectives and any economy on this account, it must be realized, would be bad for the future of the stores.
Assortment Policy and Service
It is extremely necessary that their assortment policy must take care of the core clientele. It is not desirable that anything and everything should be purchased, disregarding the needs of the majority of the customer members. Neglect of this has resulted in stock-pilling in many stores, locking up consequently their mearge financial resources. Smaller sales turnover, increased overhead expenses, poor salesmanship, have mainly contributed to the loses of a large number of cooperative department stores in the country. Non-competitive prices and sometimes non-availability of required goods (stock outs0 have also been responsible for their losses. Credit sales to members are not generally recommended in developing countries, because they add to their cost of management with the attendant risk of non-payments on due dates.
The factors such as availability of all goods in demand, good service, convenient location, reasonable prices, quality in relation to price are responsible for increased patronage of the customers. On the other hand, non-availability of goofs, indifference of sales staff, inconvenient location, unreasonable prices are factors that affect their business adversely. Intelligent determination of level inventories, keeping in mind the nature of demand, can immensely contribute to economy in cost of management and business. This is not adequately understood by a good many of the cooperative department stores in the country.
Cooperative Character
The cooperative character of the department store must also be progressively reflected in the nature of business conducted by cooperatives to justify their existence as cooperatives. The share of members in the business, their participation in annual meetings, a clear-cut demarcation between policy-making and its implementation go a long way in preserving and much emphasized cooperative character of a department store.
These stores handle ‘consumer groups’ of articles and also ‘essential groups’ of articles. The former include semi-durable and durable goods which middle class consumers ordinarily require (textiles, household articles, toilet articles, etc.) The latter include wheat, rice, edible oils, pulses, spices, etc. Both these require different managerial skills, organizational set-up and orientation of the personnel. Further these stores are linked with the federations of consumers cooperatives at higher levels from whom they should receive supplies and services of various types, on time and as far as possible at a small service-charge. Extraordinary emphasis on sale of confiscated goods (imported smuggled goods) made available to them by the Government has only contributed to distortion of their basic objectives, apart from bringing in the undesirable elements, at times, of corruption.
Vast Potential
The cooperative department stores are no doubt needed for protection and promotion of interest of the helpless consumers in urban areas. They can, on the basis of strength, provide shape and proper direction to the unorganized retail trade in the country. This has become extremely urgent. There is, therefore, huge potential available for such stores. They should however be organized after a careful feasibility study, and be well managed.
Government support and encouragement may be considered welcome from this angle. However, it will be in the interest of the consumer members themselves to treat it as a transitional phase. They must free themselves from the Government crutches as early as possible and become self-reliant to have their policies formulated independently and pragmatically in tune with the market requirements.
AN OVERVIEW OF THE HISTORY :
Apna Bazaar Co-operative was started on 1st May 1948 as a small departmental store at Naigoan, Mumbai. In the early period of post independence era, cloth purchase was on the rationing basis and many restrictions such as import ban were imposed by the British Government were still continued. To overcome this obstacle mill workers in Mumbai organized grocery and cloth store by collective efforts which was named as Mumbai Kamgar Madhyawarti Grahak Sahakari Mandal Ltd. Shri Dadasaheb Sarfare was the core person behind the founding, organizing and upliftment of this co-operative society. Gradually year after year this store was developed into 7 department store. The mill workers used to spare time from their shifting duties and devote themselves in contributing to the functions of this cooperative to meet its objective of satisfying food and clothing needs of the lower middle class people dwelling in the south of Mumbai city.
During years later many members purchased shares and invested gradually resulting into tremendous expansion and diversification of the organization. At present the administrative and departmental store at Naigaon is 34 years old.
The labour strikes in the initial stages were influnced by Sampoorna Community i.e Praja Samajwadi Paksh.
The core value of the organization is to provide quality products at a cheaper rate at proper standards.
Total number of employees working the Apna Bazaar all over Mumbai is 850.
ESTABLISHMENTS:
Apna Bazaar has Seven Department Stores at Naigaon, Fort, Andheri, Mulund, Vashi, Thane and Ratnagiri, 28 Retail outlets and 6 Medical Shops extend services in Mumbai. Super Market at Deorukh and Retail outlets at Alore, Bhagvati (Ratnagiri) and Tarapore provides services to consumers in Rural Kokan areas. Fleet of 12 Mobile Van shops cater to the needs of consumers at their doors. There are 13 vehicles of the main Naigaon department used for procurement of commodities. Processing units in spices, pulses and pickles at Taloja and Bakery unit at Nerul supply quality products. Wholesale purchase unit at Turbhe in A.P.M.C., Vashi and Naigaon units supply at wholesale rates to various companies and Industrial establishments. All the activities including milk plants at Chalisgaon and Kudachi (Karnataka) achieved turnover of 147 crores.
MANAGEMENT:
Chairman and Secretaries of Branch Committees and Sr. Officers of the society are invited to participate in monthly meeting of the Managing Committee and various projects, management issues and policy matters are discussed and final decisions are arrived for implementation.
The Office Bearers and Sr. Officers of the organization meet weekly to consider the issues in respect of management and heavy expenditure items and recommend the proposals for final approval of the managing committee of the organization.
ACTIVITES UNDERTAKEN BY APNA BAZAAR
APNA INSTITUTIONAL COMPLEX :
Apna Bazaar has been developed on account of continuous and devoted members and nearly 350 members are actively involved. Various sub-committee were constituted for specific functions such as Branch Advisory Committee, Milk Project Committee, Production Committee, Budget Committee, Printing Committee, Respective members execute specific work assigned to them.
It may be noted that success achieved by Apna Bazaar is due to dedicated and devoted 350 co-operators, 150 efficient officers and 1500 honest and hard working employees and effective and sincere efforts of 2000 persons towards developmental activities.
CONTRIBUTION TO NATIONAL ECONOMY :
The consumers co-operative sector has been playing a very vital role in National Economy. Apna Bazaar Society’s contribution to employment generation and revenue contribution is appreciated by the State Givernment.
In accordance with policy of free Economy there are drastic changes in economic system. Planning Commission under the current Government authority ahs not provided specific rate top co-operative sector in 8th Five Year Plan hence State Government is not clear in respect of co-operative policy in this regard. To overcome this situation Apna Bazaar has started the principles of Market Economy. But there too the organization along with other consumers cooperative has face problems such as where after GATT Agreement, multinational companies being eligible for various facilities which are available in Market Economy of developing countries like India.
Multi National companies have large Department Stores in developing countries, many of them are set up at some metropolitan here in India and it would be very difficult for Apna Bazaar if these MNCs begin there business at its level. The main reason is that these companies obtain funds at the rate of interest 3% to 4%, but domestic cooperatives are getting loan at 13% or higher rate of interest and this difference between interest rate may adversely affect their profitability.
Structure of the market is undergoing a rapid change as companies from Middle East are setting up their chain for providing services in distribution and they have already captured Delhi Market. Hence in order to strengthen its position in market economy, it became essential for Apna Bazaar to modernize its branches and department stores. The quality, availability and prices of articles are watched carefully and priority is given to build its own capital. According to its philosophy, it is not be possible to stand in free market without supplying different and prompt services in attractive packages and maintaining adequate and appropriate stocks timely.
APNA BAZAAR ON WHEEL :
Apna Department Store has completed 9 years and it has been increasing its monthly sales. Apna Bazaar on wheel was introduced to serve consumers in Ratnagiri. Sales of Mobile Van Shop has been increasing and within a month daily sales amounted to average of Rs. 8500/-.
FESTIVAL SALES OF APNA BAZAAR :
Festival Sales of Apna Bazaar Production is organized during the festival seasons every year where consumers are awarded ‘Gifts’ against purchases of production items. A survey is also conducted to have feed back of customers about Apna Bazaar production. During the celebration of Sale Festival sale of Apna Bazaar Production increases at a tremendous rate.
MILK PROJECT :
Apna Bazaar is distributing whole standard cow milk in Bombay and New Bombay. During the last 8 years its has introduced Toned Milk which has become popular. In this period it has been distributing these variety of Milk in Nasik and Aurangabad and sales of milk has been increased in both the towns. Now it is planning to expand milk distribution activity in other cities of Maharashtra.
Apna Bazaar has introduced 200 gm & 500 gm packs of Stand-up-Pouches for selling Sahakar Ghee and Butter. The increased sales at its Department Stores and Branches. Sales of Ghe and Butter amounted to great extent. It has introduced Shrikhand and Paneer on experimental basis.
It is proposed to set up milk plant at Turbhe to supply quality milk regularly to Mumbai.
HEALTH SERVICES :
To benefit the consumers, Dada Sarfare Aarogya Kendra organizes number of health camps every year to detect Diabatic, women diseases. Check-up of Eye, Tooth, Ear, Nose, Throat, Leprosy, Family Welfare etc. Free advice was available in camps and various other services is extended to a large number of patients.
TRAINING PROGRAMS :
Training workshop for management trainees is undertaken which is jointly organized by International Co-operative Alliance and N.C.C.F at Tata Insitute of Social Science, Mumbai. Training programs for salesmen are organized at Apna Bazaar, Naigaon and Andheri.
CO-OPERATION BETWEEN OFFICERS AND OTHER STAFF :
In achievement of target Annual turnover of business, the role of officers as well as other members of staff is very important. To execute successfully any project, the officers and other employees extend their co-operation. Hence the planned programs are timely executed and recognized Union Bhartiya Kamgar Sena also extends effective co-operation.
MULTINATIONAL APPROACH OF APNA BAZAAR
Apna Bazaar has been trying through years for increasing its sales. As the matter of fact, in the last few years it has kept its primitive methodology aside and headed towards the adoption of the new methods as some private sector giants and multinational companies have been doing in their business professional techniques. It should be noticed that Apna Bazaar have already started using this method to reach its customers.
While selling products from stores and branches, servicemen treat the customers with extra care, contacts and converse with them about the new products and their benefits, tries to comprehend the likes and dislikes of the customers, attains their complaints and grievance. The branch manager sees to it that they are satisfied. Customers requiring home delivery are met with the executives of the society and are convinced about the new schemes for their benefits. The principle of multinational such as ‘to know your customer, you must first reach him’ is identified and followed by the society.
While functions as a distributor, it is essential that markets abroad are also managed along with the domestic markets. Understanding this the society has started export unit few years ago in order to surge the business opportunities abroad for increasing sales.
Through various public meeting, both monthly and cultural, brainstorming is practiced regarding how the sale can be boosted and appropriate solutions for the same are worked out. Rather than only placing the question, the solution to the problems are given more value and treatment.
Executives and members in the society are trained to study the business standards and working out the way by which the profit figures can be boosted as well as to be alert to face any situation. Service-men are trained to develop their decision making power and to be competitive.
Unlike private entrepreneurs who publicize for building their image in the market, Apna Bazaar adopts a practical way of providing its customers with loyalty card called ‘Akshay Plus’. Making profit by exploiting people of the various classes, is of-course not the ultimate aim of the society, because “social welfare” are its two golden words. But “Survival of the fittest” are the ideal thoughts which leads the society for being as the top consumer co-operative society of the state.
CHALLENGES OF FUTURE:
Inspite of inadequate and irregular supply of essential commodities in market and changing economic conditions on account of economic liberalization in the country, Apna Bazar has achieved record sales turnover of Rs.147 crores and created land mark in consumers co-operatives in India. It has challenging tasks to face for achieving further developments.
The Consumers co-operative have to make efforts to increase their impact effectively in retailing activities of the total market. To attract the consumers towards co-operatives, special efforts by consumers and co-operators should be effectively directed and challenging tasks can be attended by all of its members for the stability of their organization in the market.
EMPLOYMENT OPPORTUNITIES BY APNA BAZAAR :
Due to the Apna Bazaar Co-operative Stores not only the niche traders are benefited but employment opportunities for youths have become possible.
This society founded by Dadasaheb Sarfare has achieved immense co-operation during the past years. As Mumbai city has been growing, Apna Bazaar came up with the idea of franchise-ship, and gradually created land-mark in expansion of franchisee business. The principle of Co-operative Governance was implemented and new co-operatives were established through franchisee branches.
THE STRUCTURE :
Shri Mahila Griha Udyog, the makers of the famous Lijjat Papad, is an organisation which symbolises the strength of a woman. All the women members are jointly the owners of the organisation and are fondly referred to as 'sisters'. There is a central managing committee of 21 members to manage the affairs of the organisation.
The organisation is wide-spread, with it's Central Office at Mumbai and it's 60 centers and 40 divisions in different states all over India. The organisation started of with a paltry sum of Rs.80 and has achieved sales of over Rs.300 crores with exports exceeding Rs. 10 crs.
Membership has also expanded from an initial number of 7 sisters from one building to over 40,000 sisters throughout India. The organisation functions on the basis of consensus.
AN OVERVIEW OF THE HISTORY :
It all began on 15th march. 1959 which was a warm summer day with the sun shining brightly in the cloudless sky. A majority of the women inhabitants of an old residential building in Girgaum (a thickly populated area of South Bombay), were busy attending their usual domestic chores.
A few of them, seven to be exact, gathered on the terrace of the building and started a small inconspicuous function. The function ended shortly, the result - production of 4 packets of Papads and a firm resolve to continue production. This pioneer batch of 7 ladies had set the ball rolling.
As the days went by, the additions to this initial group of 7 was ever-increasing. The institution began to grow.
The early days were not easy. The institution has its trials and tribulation. The faith and patience of the members were put to test on several occasion - they had no money and started on a borrowed sum of Rs. 80/-.
Self-reliance was the policy and no monetary help was to be sought (not even voluntarily offered donations). So work started on commercial footing.
The success of the organisation stems from the efforts of it's member sisters who have withstood several hardships with unshakable belief in 'the strength of a woman'. The organisation functions on the basis of consensus.
With quality consciousness as the principle that guided production, Lijjat grew to be the flourishing and successful organisation that it is today.
CORE VALUES :
Shri Mahila Griha Udyog Lijjat Papad is synthesis of three different concepts, namely
(1) The concept of Business
(2) The concept of family
(3) The concept of Devotion
All these concept are completely and uniformly followed in this institution. As a result of this synthesis, a peculiar Lijjat way of thinking has developed therein.
The institution has adopted the concept of business from the very beginning. All its dealings are carried out on a sound, pragmatic and commercial footing - Production of quality goods and at reasonable prices. It has never and nor will it in the future, accept any charity, donation, gift or grant from any quarter. On the contrary, the member sisters donate collectively for good causes from time to time according to their capacity.
Besides the concept of business, the institution along with all it's member sisters have adopted the concept of mutual family affection, concern and trust. All affairs of the institution are dealt in a manner similar to that of a family carrying out its own daily household chores.
But the most important concept adopted by the institution is the concept of devotion. For the member sisters, employees and well wishers, the institution is never merely a place to earn one's livelihood - It is a place of worship to devote one's energy not for his or her own benefits but for the benefit of all. In this institution work is worship. The institution is open for everybody who has faith in its basis concepts.
PRODUCTS :
Shri Mahila Griha Udyog manufactures various products from Papad, Khakhra, Appalam, Masala, Vadi, Gehu Atta, Bakery Products & Chapati.
It also produces/manufactures SASA Detergent Powder, SASA Detergent Cake (Tikia), SASA Nilam Detergent Powder, SASA Liquid Detergent.
DIVERSIFICATIONS :
Shri Mahila Griha Udyog has diversified its various activities. Besides it's world famous papads, it also currently has -
A Flour division at Vashi (Mumbai) where flour is milled from Udad Dal and Moong Dal..
A Masala Division at cotton Green(along with a Quality Control Laboratory) at the same place where different kinds of spice powders like Turmeric, Chillies, Coriander and ready mix masala and like Garam masala, Tea masala, Pav-Bhaji masala, Punjabi Chole Masala etc. are prepared and packed in consumer packs.
A Printing Division also at the same place.
Lijjat Advertising Services at Girgaum (Mumbai).
A Khakra Division at Buhari (Dist-Valod).
An Export division at Wadala.
Chapati divisions at Mumbai.
A Polypropylene set-up at Kashi-Mira Road.
A Vadi producing factory at Valod.
A Bakery division at Valod.
A Detergent Powder and Cakes manufacturing unit at Dahisar and office at Borivali (Bombay).
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