lijjat papad

INTRODUCTION:
The story of Lijjat Papad is full of entreprenuiral vase only.Shri Mahila Griha Udyog Lijjat Papad, popularly known as Lijjat, is an Indian wo en!s organi"ation anufa#turing various produ#ts. The organi"ation!s registered

offi#e is situated in Mu $ai and it has %& $ran#hes and '( divisions all over India. Started in )*(* with a #apital of I+, -., Lijjat today has an annual turnover of around ,s. ')( #rore /,s. '.)( $illion0, with ,s. )1 #rore in e2ports and has around 31,... e ployees. Lijjat is pri arily a #ottage industry, ur$an $y its origin, that has spread to the rural areas. It is #onsidered as one of the ost re arka$le enterprenual initiative $y wo en that is identified with wo en e power ent in India. Lijjat was the $rain #hild of seven se i4literate Gujarati housewives fro 5o $ay /now Mu $ai0. The wo en lived in Lohana +iwas, a group of five $uildings in Girgau . They wanted to start a venture to #reate a sustaina$le livelihood using the only skill they had i.e. #ooking. The seven wo en were 6aswanti$en 6a nadas Popat, Parvati$en ,a das Thodani, Uja $en +arandas 7undalia, 5anu$en. +. Tanna, Lagu$en 8 ritlar Gokani, 6aya$en 9. 9ithalani, and one ore lady whose na e is not known.

The wo en $orrowed ,s -. fro

:haganlal 7ara si Parekh, a

e $er

of the Servants of India So#iety and a so#ial worker. They took over a loss4 aking papad aking venture $y one La2 idas$hai and $ought the ne#essary anufa#ture papads. e

the i portan#e of running it as a $usiness enterprise and

aintaining proper a##ounts?. Lijjat e2panded as a #ooperative syste . Initially, even younger girls #ould join, $ut later eighteen was fi2ed as the of entry. @ithin three onths there were a$out 1( wo en ini u age

aking papads. Soon

the wo en $ought so e e;uip ent for the $usiness, like utensils, #up$oards, stoves, et#. In the first year, the organi"ation!s annual sales were ,s. %)*%. The $roken papads were distri$uted a ong neigh$ors.

POST-MANAGEMENT STYLE:
Nothing much has changed in management style, which is based on common sense and Gandhian homilies. First, Lijjat Papad's women pledge allegiance to common values of responsibility, e uality, and rejection of charity because it would encourage an image of women in need. !rs Popat says this philosophy binds "the sisterhood". #econd, ma$ing a profit is seen as essential. "%f we do not ma$e money the organisation will not run, and to ma$e money it is essential to run the business with s$ill," says the group's ruleboo$. &here is a narrow, standardised range of products and it does not give credit to the retailers it supplies. Five administrators typically run a branch of '(( women. Lijjat Papad's success has become a symbol of women's economic enfranchisement in %ndia. %t is also a re) enforcement of the Gandhian principles of self)help and trusteeship that still govern the allocation of resources in a large part of the economy.

PROCESS:
Auring the first year, the wo en had to stop produ#tion for four onths during the rainy season as the rains would prevent the drying of the papads. The ne2t year, they solved the pro$le $y $uying a #ot and a stove. The papads

were kept on the #ot and the stove $elow the #ot so that the pro#ess of drying #ould take pla#e in spite of the rains.

PUBLICITY:
The group got #onsidera$le pu$li#ity through word of outh and arti#les in verna#ular newspapers. This pu$li#ity helped it in#rease its e $ership. 5y the se#ond year of its for ation, ).. to )(. wo en had joined the group, and $y the end of the third year it had ore than '.. e $ers. 5y odate the

this ti e, the terra#e of seven founders #ould no longer a##o

e $ers and the ingredients, so the kneaded flour was distri$uted a ong the e $ers who would take it to their ho es and $rought $a#k for weighing and pa#kaging. ake papads. The papads were

8n atte pt to start a $ran#h in Malad su$ur$ of Mu $ai, in )*%), was unsu##essful. In )*%1, the na e Lijjat /Gujarati for BtastyB0 was #hosen $y the group for its produ#ts. The na e was suggested $y Ahiraj$en ,uparel, was #hosen in a #ontest held for the purpose, with pri"e oney of ,s. (. The

organi"ation was na ed Shri Mahila Griha Udyog Lijjat Papad. In 8ryan languages, Mahila eans wo en, Griha eans ho e, Udyog

any Indo4 eans

industry. 5y )*%14%', its annual sales of papads tou#hed ,s. ).-1 lakh. In 6uly )*%%, Lijjat registered itself as a so#iety under the So#ieties ,egistration 8#t )-%.. In the sa e onth, on :hagan$apa!s re#o endation, U + Aeodhar,

the #hiar an of 79I: personally inspe#ted the Lijjat. 79I: or 7hadi Aevelop ent and 9illage Industries :o ission is a statutory $ody set up $y

the Govern ent of India for develop ent of rural industries. In Septe $er )*%%, 79I: for ally re#ogni"ed Lijjat as a unit $elonging to the Bpro#essing of #ereals and pulses industry groupB under the 7hadi and 9illage Industries 8#t. It was also re#ogni"ed as a Bvillage industryB. In )*%%, 79I: granted it a working #apital of ,s. - lakhs /..e2e ptions. illion0 and was allowed #ertain ta2

ADVERTISEMENT:

Lijjat also started taking part in several trade fairs and e2hi$itions, whi#h i prove its sales and ade the $rand na e BLijjatB well4known a ong

the people. The advertising was undertaken through the verna#ular newspapers, television and radio. The institution sponsored progra s and gave away gifts for the winners of spe#ifi# shows in the television. The oney

for advertise ents was spent $y the Polypropylene Aivision, whi#h re#overed the sa e $y adding it to the pri#e of the $ags that it supplied to all the $ran#hes and divisions throughout India. In the )*-.s and )**.s, Lijjat started attra#ted attention of foreign visitors and offi#ials. The 9i#e4President of Uganda, Ar. Spe#iosa @andira47asi$we, visited Lijjat!s #entral offi#e in 6anuary )**%, sin#e she wanted to start a si ilar institution in Uganda. Lijjat started e2porting its produ#ts with the help of er#hant i porters in the United 7ingdo , the

United States, the Middle Cast, Singapore, the +etherlands Thailand, and other #ountries. Its annual e2ports a##ounted for ore than USD1.3 illion in of fake

1..). 8s its popularity grow, Lijjat started fa#ing the pro$le Lijjat papads $eing introdu#ed in the

arket. In 6une 1..), three persons were

arrested in this #onne#tion, in 5ihar. Lijjat!s we$site e2plains the identifi#ation features of original Lijjat papads.

CULTURE:
Lijjat Patrika, the in4house aga"ine, is pu$lished and #ir#ulated for a any

no inal rate to those interested in the a#tivities of Lijjat. It is pu$lished in

languages, in#luding Cnglish, Gujarati, Marathi and >indi. It has e erged as a strong ode of #o uni#ation for infor ation related to signifi#ant events and

initiatives at Lijjat, in addition to presenting arti#les on wo en.

Me $er sisters a#ross all $ran#hes of Lijjat re#ite an all4religion prayer $efore $eginning their daily a#tivities. The sisters are free to #hoose their a#tivities and ea#h a#tivity is given e;ual i portan#e. Leaving the organi"ation is voluntary. +o e $er sister #an $e asked to

leave unless or until she goes against the organi"ational prin#iples. There is no fi2ed retire ent age at Lijjat. owever, #o puters are now $eing used in so e of the Mu $ai $ran#hes for a##ounts and ad inistration.

BRANCH:

8n atte pt to start a $ran#h in Sangli town, in )*%%, was unsu##essful. The first $ran#h outside Maharashtra was esta$lished at 9alod, Gujarat in )*%-. 8fter tasting tre endous su##ess with their papads, Lijjat $egan produ#ing other produ#ts like khakhra /)*&30, asala /)*&%0, vadi, wheat atta, and $akery ills/)*&(0, printing division

produ#ts /)*&*0. In )*&.s, Lijjat set up flour

/)*&&0 and polypropylene pa#king division /)*&-0. The group also initiated so e unsu##essful ventures su#h as #ottage leather /)*&*0, at#hes /)*&*0, and

agar$attis /in#ense sti#ks0. In 6uly )*&*, the general se#retary of a trade union tried to interfere in Lijjat!s affairs, aking #ertain de ands on $ehalf of a few

e $er4sisters. L. :. 6oshi, La$our 8dvo#ate of 5o $ay and a well4known industrial relations e2pert, was #alled for #onsultations. In his o$servations on B@ho owns LijjatEB, he #larified that e $er4sisters were #o petent to take a

de#ision for their own and it was not open for an outside agen#y to interfere with the internal working of Lijjat. In )*-(, the Lijjat $ran#h at 6a$alpur was taken over $y one Shantilal Shah as his own unit, whi#h he ran with the help of a San#halika /$ran#h head0, who was wife of his e ployee. Lijjat went through tre endous pressures and #ourt stay orders to retrieve the situation.

AWARDS:

Lijjat re#evied the B5est 9illage Industries InstitutionB award fro

79I: for

the period )**-4** to 1...4.). In 1..1, the B5usinesswo an of the FearB award was given to BThe @o en 5ehind Lijjat PapadB at The C#ono i# Ti es 8wards for :orporate C2#ellen#e. 8t the awards #ere ony, the President of Lijjat urged the State Govern ents of Maharashtra and Punja$ to re#onsider their de#ision of withdrawing the ta2 e2e ption on Lijjat!s Sasa Aetergent. In 1..1, Lijjat had a turnover of ,s ' $illion and e2ports worth ,s.).. It e ployed 31,... people in %1 divisions all over the #ountry. The %1nd $ran#h $e#a e operational at 6a u and 7ash ir in 1..1, enrolling over )(. illion.

e $ers. In 1..', Lijjat re#eived the B5est 9illage Industry InstitutionB. It also re#eived the P>A::I 5rand C;uity 8ward 1..(. Lijjat $elieves in the philosophy of sarvodaya and #olle#tive ownership. It a##epts all its working profit and loss. The e $ers as the owners and an e;ual partaker in $oth

e $ers are #o4owners and fondly referred to as e $er4sister has

BsistersB. 8ll the de#isions are $ased on #onsensus and any

the right to veto a de#ision. Men #an only $e salaried e ployees /a##ountants, drivers or se#urity guards0, and not the organi"ation. e $ers of the

MANAGING COMMITTEES:

The running of the organi"ation is entrusted to a twenty4one

anaging #o

ittee of

e $ers, in#luding the President, the 9i#e4President, two

se#retaries, and two treasures. San#halikas are in4#harge of various $ran#hes and dvisions. The offi#e $earers of the san#halikas are #hosen fro a ong the anaging #o ittee and the

e $er4sisters on the $asis of ittee eleven e $er4

#onsensus every three years . Ca#h $ran#h has a #o sisters, agaiin #hosen $y #onsensus.

The #entral offi#e at Mu $ai previously #o4ordinated the a#tivities of various $ran#hes. 5ut, as the organi"ation grew, the authority was de#entrali"ed in ter s of work and sharing of profits at the $ran#h level. >owever, the san#halikas still need the any new proje#t or a#tivity. 8ll the $ran#hes follow the sa e set of instru#tions and have si ilar a##ounting syste . To #o4ordinate varioius $ran#hes in a region or state, there are $ran#h #o4ordination #o state. The annual general ittees and area eetings of various $ran#hes in a e $er4sisters representing anaging #o ittee!s approval $efore they undertake

eeting is attended $y

$ran#hes and divisions all over India.

:urrently, Lijjat has $ran#hes in seventeen Indian states 44 8ndhra

Pradesh, 5ihar, Aelhi, Gujarat, >aryana, 6harkhand, 6a

u and 7ash ir,

7arnataka, 7erala, Madhya Pradesh, Maharashtra, and Sakti$hog, $ut none see to $e a$le to

ake any dent in LijjatKs share of the industry as their #ore $usiness is not papad.

Lijjat

arkets its produ#ts through a wide network of dealers and distri$utors

all a#ross the #ountry, and has never #hosen to sell or push its produ#ts dire#tly through the vast network of its offi#es and sister4 e $ers even during the initial years. ,ather, over the years, Lijjat has developed #ordial and $enefi#ial relationships with its dealers. Sisters #lai utually

they $elieve in doing the

$usiness wisely and on sound $usiness ethi#s. Aealers are given a set #o ission of seven per #ent and retailersK earnings are fi2ed $etween ,s 1.1(

and ,s 1% on the invest ent of ,s )3 for 1.. gra s and ,s )(. for 1.( kilogra pa#ks respe#tively.

There are 13 dealers for ,an#hi $ran#h in #ities like ,an#hi, 6a shedpur, Ahan$ad, 5okaro, Patna, Gaya. Auring the 3.,... pa#ks of 1(. gra ,s ..%( onth of +ove $er 1..1, around

pa#k of papad were sold and the total in#o e #rossed

illion. 8##ording to the a##ountant at LijjatKs ,an#hi $ran#h, who sister4

wishes to re ain unna ed /as that would shift the attention fro

e $ers to e ployees and thus violate LijjatKs prin#iples and traditions0, fro 1..' Lijjat is ai ing at a sales target of a illion rupees every onth.

Thanks to sound advertising, Lijjat has already $e#o e a household na e as a sy $ol of wo enKs strength and resurgen#e, and its re#ipe #o $ining udad, oong, pepper and hing has #on;uered the papad4eaterKs palate.

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