MICRO 1. Name: Amin Rasdhara (Juice Centre) Amitbhai is small shop/provision store owner. Beside he engage also in businesses. Like sugar cane juice selling in summer. seasonal
Amitbhai got an idea to do this because he found that there isn’t any competitor in changa village even though there is a demand for it. He was little aware about this sugar cane juice. He purchase a sugar cane from nadiad in a multiple of the bunch of 20 kg every week. Because he don’t want to store excess sugar cane and not want to invest much in that also. He purchase ice every alternate day and store the excess ice in soil (traditional way). As he was shop owner there was already a electricity connection. His working hour is 12 hour a day approximately. Average Selling of glass per day is 60.
motor and juice extracter machine for Rs. 15000. Particular Price of Sugarcane Machine Price of Ice cube Electricity bill Selling price of juice with ice Selling price of juice without ice Other Expense Profit Daily Data Average Selling of glass 50 glass Ice consumption per day Sugar cane used 15 kg per day Electricity bill monthly Rs. 300 Profit Rs.250 Rs.10 Rs.60 Rs.10 Rs.170/daily Amount Rs80 per 20kg Rs15000 Rs20 per 15kg Rs 300 per month Rs5 per glass Rs7 per glass Rs 200 per month Rs 5000 appx per month
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2. Sai vada pav At changa charusat campus there is a huge demand of breajfast due to lack of restaurant and low quality & vairaty of food available at campus canteen. Vijaybhai and his brother were casually employes person. many days of month they were remain unemployed. They started their business one and half year ago. This idea of vada pav was given by his one of the friend. He was taught by him that how to make vada pav. Vijaybhai is very spiritual and well nature person. Both brother start his day at 6 oclock. In morning they prepare vada at home which is ingredient for vada pav. He order fresh pav everyday. And he never accept stale pav because he is very conscious about customer’s health. They purchased a lari from a scrape seller for Rs. 4500 and made some changes in it to make it usable for the purpose.
Cost of the lari Pav used per day Selling price per vada pav Chees vada pav Butter/chees vada pav Cost of tomato catch-up Cost of an onion Cost of stove Kerosene consumed per day Working hour Working days
Rs. 4900 125 approx. Rs. 9 Rs. 12 Rs. 15 Rs. 130/5 ltr Rs. 50 Rs. 400 Rs. 50 11 a.m. to 6 p.m. 6 days
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Daily selling Revenue:80 plates sold Rs. 9 per plate day 20 plates sold Rs. 12 per plate day 10 plates sold Rs. 15 per plate day Total revenue Cost Cost of pav Cost of vada Kerosene Tomato catch up Cost of oil Masala Onion Other expensens Total cost Profit per day Threat/competitors • Threat of new enterance • Substitute food like packed wafer, batata pauva etc. 720 240 150 1110 100 200 50 30 150 50 50 20 650 460
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3. Om shanti tiffin services
Tiffin service idea generated in the mind of Neetaben Patel with the help of her neighbor. One day 4 to 5 student approached for asking her to providing tiffin services. That day the story of om shanti tiffin service has started. She seeks opportunity to providing tiffin service for the student of Charusat University. Basically Charusat University is situated in the heart of carotar region of Gujarat. It’s a boon for nearby villagers. But in the same way it became difficult for the student to get tasty and nutrition food. Neetben Patel living in changa which is just 4 k.m. far from Charotar University. Many students have option to up down either from amdavad or Baroda or live in changa. That student who lives in changa they were facing difficulty to find good food. Neetaben Patel took their opportunity and started Om Shanti Tiffin service. She started Om shanti tiffin service in the year 2006. At the initial stage they provide tiffin to 6 students. After that passing year by year she providing 20 tiffin at one time.
How she is managing her business She stores all the rations for whole year. Every day she buys vegetable from lari wala. Total income per day Expenses: Vegetable Food grains Gas cylinder Other expenditure Milk and ghee Profit 40* 30=Rs.1200 Rs.120 Rs.300 Rs. 40 Rs.150 Rs.100 490
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Problem faced by her:
•
During the vacation time she doesn’t have any income.
• Due to inflation rate vegetable and food grain price are increases. • Due to debt the profit is fluctuating. • In monsoon it is difficult to get vegetables. • The payment cycle is monthly basis so there is a risk for bad debts.
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4. Lijjat Papad.
Why name is Shri Mahila Griha Udyog Lijjat Papad ?
• Mahila means women: The unique characteristic of the organization is that all members of the organization are female. • Griha means home: The raw materials which are used by the member-sisters are household so they can do their work from home. • Udyog means business: The organization do the business very wisely. They do not do any adulterations or malpractices. It is a pure business. Lijjat means tasty: Earlier they do not had any name of the organization but after a few years they had decided to give name which is ‘LIJJAT’ Introduction: Be it an evening snack, or a banquet or a meal at home, The Papad finds its due place on the dining table. of Indian meal is complete without it, and India’s biggest ‘Papad’ success story is Undoubtedly, Lijjat. Everyone enjoys ‘rags to riches’ stories and everyone likes tales of stupendous success achieved through sheer determination. The story of Shri Mahila Griha Udyog Lijjat Papad is all that much more. Shri Mahila Griha Udyog Lijjat Papad, popularly know as “Lijjat”, is an Indian women’s organization manufacturing different Products of village industries. The organization’s registered office is Situated in Mumbai and it has 69 centers and 31 divisions on different states. Lijjat is spread all over Indian.
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Stared in 1959 with a capital of Rs. 80, Lijjat today has a Annual turnover of around Rs.470 crore (Rs. 4.7 billion), with Rs.24 In exports and has around 42,000employees. Lijjat is primarily a cottage industry, urban by its origin that has spread to the rural areas. It is considered as one of the most remarkable enterprenual initiative by woman that is identified with women empowerment in India. Lijjat shows how an organization can infuse Gandhian simplicity in all its activities. Shri Mahila Griha Udyog Lijjat Papad is registered under The KVIC Act- (Khadi & Village Industries Commission) The Khadi and village Industries Commission (KVIC) is a statutory organization established in 1956 by an Act of parliament. It plays a pivotal role in the strengthening of rural economy by promoting and developing Khadi and village industries.
The main objectives of the KVIC include skill improvement. Providing employment in rural areas, and transfer of technology, rural industrialization and promoting self-reliance among the people and to build up a strong rural community base. The functions of the KVIC are generally to plan, promote, organize and assist in implementation of programmers for the development of Khadi and village industries.
Three Golden Rules: Besides basic principles like self-reliance, co-ownership and faith in dignity of labour, the institution has also formed three ‘Golden Rules’ to business lijjat try to follow their three Golden rules at any cost in all branches in all over India 1. All the rights of the institution must belong to members only. 2. There must be maintenance of “Lijjat” quality at any cost. 3. There must be clean and time bound accounting system. All the Lijjat branches follow these three Golden Rules
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HISTORY: On March 15, 1959, they gathered on the terrace of their building and started with the production of 4 packets of Papads. They started selling the papads to a known merchant in Bhuleshwar. From the beginning, the women had decided that they would not approach anyone for donations or help, even if the organization incurred losses. Chaganlal Karamsi Parekh, popularly known as Chaganbapa, became their guide. Initially, the women were making two different qualities of papads, in order to sell the inferior one at a cheaper rate. Chaganbapa advised them to make a standard papad and asked them never to compromise on quality. He emphasized to them the importance of running it as a business enterprise and maintaining proper accounts. In 2009, Lijjat had a turnover of Rs 3.5 billion and exports worth Rs.170 million. It employed 42,000 people in 62 divisions all over the country. The 69nd branch became operational at Jammu and Kashmir in 2002, enrolling over 150 members. Lijjat marks its 50th year of existence on March 15 2009
Founders: Seven women with no special skills but a strong determination to earn dignity as individuals Jaswantiben Jamnadas Popat Parvatiben Ramdas Thodani Ujamben Narandas Kundalia Banuben N. Tanna Laguben Amritlar Gokani Jayaben V. Vithalani Jaswantiben Popat: Was in her twenties when Lijjat was started. Shri Mahila Griha Udyog Lijjat Papad (‘Lijjat’) was registered as a cooperative under her leadership. Always believed in providing work that led to self dignity for women.
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Received The Economic Times “Businesswoman of the Year” Award in 2002. Chaganlal Karamsi Parekh: One of the eldest members of the Lohana Community. Chaganlal Karamsi Parekh, popularly known as Chaganbapa, became their guide. Guide and philosopher of Shri Mahila Griha Udyog. Recommended production of a standard product.Stressed the importance of quality. Importance of running Lijjat as a business enterprise.Role in getting formal recognition from KVIC Core values: Shri Mahila Griha Udyog Lijjat Papad is synthesis of three different concepts, namely: 1. 2. 3. The concept of Business. The concept of Family. The concept of Devotion.
"Who owns Lijjat?" In July 1979, the general secretary of a trade union tried to interfere in Lijjat's affairs, making certain demands on behalf of a few member-sisters. L. C. Joshi, Labour Advocate of Bombay and a well-known industrial relations expert, was called for consultations. In his observations on "Who owns Lijjat?", he clarified that member-sisters were competent to take a decision for their own and it was not open for an outside agency to interfere with the internal working of Lijjat. Organization Structure: In order to ensure that the working of the trust was professional, an organization structure and certain professional guidelines were put in place. Member-sisters owned the enterprise. Any women, irrespective of caste or religion willing to work in any capacity could become a member by signing a pledge of devotion to the basic tenets of the organization. It was a commitment to earn legitimate honest income thought wok on a cooperative basis.
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Six Offices - Bearers 1. Smt. Jyoti J. Naik - President 2. Smt. Pratibha E. Sawant - Vice-President 3. Smt. Sunanda R. Belnekar - Secretary 4. Smt. Swati R. Paradkar - Secretary 5. Smt. Priyanka G. Redkar - Treasurer 6. Smt. Sheetal S. Koyande – Treasurer
Lijjat believes in the philosophy of sarvodaya and collective ownership. It accepts all its working members as the owners and an equal partaker in both profit and loss. The members are co-owners and fondly referred to as "sisters". All the decisions are based on consensus and any member-sister has the right to vote a decision. Men can only be salaried employees (accountants, drivers or security guards), and not the members of the organization (i.e. they are not the owners).
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Products: THE LIST OF PRODUCTS AVAILABLE: Papad (five flavors: lasan, moong, mirch, Punjabi and urad) Khakhra Appalam Masala Vadi Gehu Atta(Wheat flour) Bakery products Chapati SASA Detergent Power SASA Detergent Cake (Tikia) SASA ilam Detergent power SASA Liquid Detergent Place: Lijjta is spread over in seventeen Indian states. It has many Branches in many in states of India. It almost has about 69 Branches in all part of india. It is well settled in western part of india for e.g. in Maharashtra and Gujarat. In 1968 first branch outside Maharashtra was established at Valod, Gujarat .lijjta started first branch in M.P the first branch was in 1985, the Lijjat branch at Jabalpur. Lijjat have branch visually all states of india. Exports accounts for Rs 170 million, merchant exports Major countries are UK, USA, Australia and European Countries. Promotion: At Shri Mahila Griha Udyog Lijjat Papad, they believe that the best promotion they Could possibly receive is by word of mouth. Therefore they concentrate more on cost Effectiveness and quality rather than on more expensive modes of promotion like Advertisements. Therefore annual expense on advertisement and promotion amounts to Rs. 60 lakes,About merely 0.2% of total turnover. The extremely famous ‘bunny rabbit’
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campaign continues to be aired on specific regional channels. For e.g. Alpha Guajarati, Alpha Bengali, Sun etc. Quality Check: The papads are prepared in different parts of India, the quality of the water used usually varies, and so can the quality of final product. To prevent any inconsistencies, Lijjat has its own laboratory in Mumbai, where the final products are tested and coded. In the monthly meetings, the quality issue and modifications are tested. Ingredients purchased and distributed by the Central Office to maintain the quality. Procurement of Ingredients o Urad dal from Myanmar o Asafetida from Iran o Black Pepper from Kerala Surprise visits to various branches to ensure production conditions are hygienic. When a new branch of Lijjat opens, a neighboring Lijjat branch helps it by guiding and training new members. Successive failures of a branch to abide by the organization's philosophy of consistent quality and production of papads, the central committee reduces the daily wages of its members by 1 rupee. Distribution Flow Chart: The entire cycle starts with a simple recruitment process. Any woman who pledges to adopt the institution's values and who has respect for quality can become a member and coowner of the organization. In addition to that, those involved in the rolling of the papads also need to have a Clean house and space to dry the papads they roll every day. Those who do not have this facility can take up any other responsibilities, like kneading dough or packaging or testing for quality. Packed papads are sealed into a box (each box holds 13.6 kg) and the production from each centre is transported to the depot for that area. Mumbai alone has sixteen branches and six depots. Each depot stocks production from the nearby three to four branches -roughly about 400 boxes. In some smaller towns or villages, the branch itself serves as the depot. The depots are our storage areas as well as pick up points for distributors.
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Collection Flow Chart: Their exports alone account for Rs 24 crore (Rs 240 million). They are not directly involved in exporting, but recognized professional merchant exporters (who also export other food products) place an export order. Only on receiving the full advance through a cheque do they begin production. Because all exports are done from Mumbai, the supply also comes from here. Export production is of the same quality as daily production. In fact, they send some of the daily production for export.
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The Growth: Membership has expanded from an initial number of 7 sisters from one building to over 42,000 sisters throughout India. The main reasons of expanding of lijjat was when lijjat started very few women was allowed to go and worked outside their house. As lijjat first product was papad .Many women known how to make papad. As of making papad does not any technical skill or any education so women can easily make papad so their started joining lijjat. Because of this there can help their family with some finically support. The organization is wide-spread, with its Central Office at Mumbai and its 69 Branches and 37 Divisions in different states all over India. Early organizations have their office in Bhuleshwar then their shifted to Bandar. The organization has widely speared all over India. The 69 branches are spread over in seventeen state of India. The venture started with loan of Rs 80. Lijjat’s annual sales increased from Rs 6,196 in 1959 to more than Rs 4.7 billion in 2009, with exports itself exceeding Rs. 240 million. Business Transparency: Each branch office is responsible for setting a target for monthly production and the marketing. Each Lijjat centre has a clearly delineated marketing territory to avoid competition amongst centers .Commission agents are attached to almost all Lijjat Centers and they account for a major part of the Lijjat sales. Lijjat has a separate marketing, sales, and advertising divisions same prices across the category
Flexibility: The decentralized production methodology has ensured that the women do not have to leave their homes for work It allows them flexible working schedule enabling them to discharge other household responsibilities This account for the easy acceptance of the work among such a large number of women since they feel their economic activity will not disrupt the family by their absence Men are also less hostile to women working at
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home for extra income than travelling to a workplace Self selection of work by the members.
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SWOT Analysis: Strengths: Sincere Hard work Development of woman by providing them a living / Employment. Maintaining the same standard over the last 50 years. Having a unique status in the country. Weakness: Lack of marketing skills Less use of technology Limited capital Semi-literate Opportunities: Expanding horizontally as well as vertically Increasing export Business can be made sustainable/profitable without high initial investment Threats: In the Papad industry, the major competition or threat is posed to the institution by Ganesh Papad In the spices industry, the Haldiram and MDH are the major competitors In detergent, there are many competitors like HUL, P&G etc.
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Awards to liijat: “Best Village Industry” for the period 1998-1999 to 2000-2001 from “Commission of Khadi & Village Industries”. A “Businesswomen of the Year 2001-2002 for Corporate Excellence” Form the Economic Times In January 2003 it received the award for “Best Village”at the hands of Hon’ble Prime Minister Shri Atal Bihari Vajpayee
On 21st December 2005 institution has received has Received the “Brand Equity Award at the hands Hon’ble President of India, DR.A.P.J Abdul kalam
Social Welfare: On several occasions, the Lijjat member-sisters have undertaken social service Activities such as distributing nutritious food for poor children, donating money for Conducting community marriage, instituting prize- money fore spread of primary Education, undertaking blood donation drive, organizing heath camps, plantation drives and Even making donations to Government bodies. In 1999, the Mumbai City felicitated Smt. Rukminiben B. pawar, Lijjat President, as an outstanding woman in the field of social work. Lijjat undertook the rehabilitation of chincholi (Jogan), the earthquake affected Village in the Latur district of Maharashtra. Member-sisters donated money from their daily vanai (wage).After the 2001 Gujarat earthquake, all the branches of Lijjat gave a total donation of more than Rs 4.8 million, including Rs 1 million from the central office. Lijjat built forty houses for the rehabilitation of the people of Bhujpur (Bhachau) in Kutch District.Literacy campaign ‘Akshardeep’ started in 1999 for its members in Bhubhaneshwar After the 2001 Gujarat earthquake, all the branches of Lijjat gave a total donation of more than Rs 4.8 million, including Rs 1 million from the central office Literacy programmes in other states
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Guidance on further studies Educational and hobby centres for rural women computer training to sisters’ children Loans and housing assistance. Summing it up: The most interesting lesson managers can pick up from Shri Mahila Grihan Udyog
Free
Lijjat Papad, sticking to its core values the past forty years. The institution thus paves the way for women to become self-reliant and self-confident. In the process Lijjat provides them the platform for improving their status in the society, which is their justified right. The ladies are brimming with confidence. Lijjat is an institution which has stood the trial of time and tribulation and has achieved success because when basic management principles and uncompromising quality consciousness are applied in conjunction with sound business principles, there can be only one way for the ladies of the Lijjat-a brighter and happier tomorrow, the pride and joy of fulfillment. Lijjat makes almost equal money for its entire people and makes just enough money. of one ould become a millionaire by setting up another Lijjat. If this aspect of Lijjat’s operations is not very good news for machine and money-driven corporate owned by tycoons, the essential message that Lijjat’s success conveys has definitely fired the imagination of women and rural folks. In many parts of Maharashtra and Gujarat, locally manufactured and marketed eatables are catching on. There is hardly any GO or voluntary organization nowadays which does not try create employment and funds, small or big, along Lijjat’s line. As a business house, Lijjat itself has been trying to rewrite its own success with another product with varying degree of success. Grounded spices, Khakhra, black pepeer powder, detergent powder and cake, Vadi, bakery products, wheat filthier are on Lijjat’s menu but Papad with a sales figure of Rs 288 crore remains at the top. Among similar ventures which came a cropper are incense sticks, leather bags, Tiffin boxes andMatchsticks. But most promising among them is the chapatti division with six branches inMumbai. Here, the women come in to work at around seven in the morning and makeContributed by members of chapatti as they are prepared in homes. Packed Lijjat chapatti, four for Rs five, are available at retail shops in Mumbai. These centers also procure orders from hotels, office canteens, etc. and the catering in Mumbai includes some big names from the hotel andCatering industry. ‘As the pace of life increases, little time is available to most people in Metros like Mumbai to cook their own food. There are good prospects for women forming Small groups and catering to the local demand for homemade chapatti or similar products,” Says Ashok Bhagat, a leading social worker engaged in tribal welfare activities in the Gumla District of Jharkhand. ext time there is Lijjat Papad on the table,
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you sure can see a Chandrasekhar or Suja’s dimpled fingers deftly roll out the crisp Papad. It is made with love and care, just like from their mama’s kitchen.
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doc_885141288.doc
Amitbhai got an idea to do this because he found that there isn’t any competitor in changa village even though there is a demand for it. He was little aware about this sugar cane juice. He purchase a sugar cane from nadiad in a multiple of the bunch of 20 kg every week. Because he don’t want to store excess sugar cane and not want to invest much in that also. He purchase ice every alternate day and store the excess ice in soil (traditional way). As he was shop owner there was already a electricity connection. His working hour is 12 hour a day approximately. Average Selling of glass per day is 60.
motor and juice extracter machine for Rs. 15000. Particular Price of Sugarcane Machine Price of Ice cube Electricity bill Selling price of juice with ice Selling price of juice without ice Other Expense Profit Daily Data Average Selling of glass 50 glass Ice consumption per day Sugar cane used 15 kg per day Electricity bill monthly Rs. 300 Profit Rs.250 Rs.10 Rs.60 Rs.10 Rs.170/daily Amount Rs80 per 20kg Rs15000 Rs20 per 15kg Rs 300 per month Rs5 per glass Rs7 per glass Rs 200 per month Rs 5000 appx per month
1
2. Sai vada pav At changa charusat campus there is a huge demand of breajfast due to lack of restaurant and low quality & vairaty of food available at campus canteen. Vijaybhai and his brother were casually employes person. many days of month they were remain unemployed. They started their business one and half year ago. This idea of vada pav was given by his one of the friend. He was taught by him that how to make vada pav. Vijaybhai is very spiritual and well nature person. Both brother start his day at 6 oclock. In morning they prepare vada at home which is ingredient for vada pav. He order fresh pav everyday. And he never accept stale pav because he is very conscious about customer’s health. They purchased a lari from a scrape seller for Rs. 4500 and made some changes in it to make it usable for the purpose.
Cost of the lari Pav used per day Selling price per vada pav Chees vada pav Butter/chees vada pav Cost of tomato catch-up Cost of an onion Cost of stove Kerosene consumed per day Working hour Working days
Rs. 4900 125 approx. Rs. 9 Rs. 12 Rs. 15 Rs. 130/5 ltr Rs. 50 Rs. 400 Rs. 50 11 a.m. to 6 p.m. 6 days
2
Daily selling Revenue:80 plates sold Rs. 9 per plate day 20 plates sold Rs. 12 per plate day 10 plates sold Rs. 15 per plate day Total revenue Cost Cost of pav Cost of vada Kerosene Tomato catch up Cost of oil Masala Onion Other expensens Total cost Profit per day Threat/competitors • Threat of new enterance • Substitute food like packed wafer, batata pauva etc. 720 240 150 1110 100 200 50 30 150 50 50 20 650 460
3
3. Om shanti tiffin services
Tiffin service idea generated in the mind of Neetaben Patel with the help of her neighbor. One day 4 to 5 student approached for asking her to providing tiffin services. That day the story of om shanti tiffin service has started. She seeks opportunity to providing tiffin service for the student of Charusat University. Basically Charusat University is situated in the heart of carotar region of Gujarat. It’s a boon for nearby villagers. But in the same way it became difficult for the student to get tasty and nutrition food. Neetben Patel living in changa which is just 4 k.m. far from Charotar University. Many students have option to up down either from amdavad or Baroda or live in changa. That student who lives in changa they were facing difficulty to find good food. Neetaben Patel took their opportunity and started Om Shanti Tiffin service. She started Om shanti tiffin service in the year 2006. At the initial stage they provide tiffin to 6 students. After that passing year by year she providing 20 tiffin at one time.
How she is managing her business She stores all the rations for whole year. Every day she buys vegetable from lari wala. Total income per day Expenses: Vegetable Food grains Gas cylinder Other expenditure Milk and ghee Profit 40* 30=Rs.1200 Rs.120 Rs.300 Rs. 40 Rs.150 Rs.100 490
4
Problem faced by her:
•
During the vacation time she doesn’t have any income.
• Due to inflation rate vegetable and food grain price are increases. • Due to debt the profit is fluctuating. • In monsoon it is difficult to get vegetables. • The payment cycle is monthly basis so there is a risk for bad debts.
5
4. Lijjat Papad.
Why name is Shri Mahila Griha Udyog Lijjat Papad ?
• Mahila means women: The unique characteristic of the organization is that all members of the organization are female. • Griha means home: The raw materials which are used by the member-sisters are household so they can do their work from home. • Udyog means business: The organization do the business very wisely. They do not do any adulterations or malpractices. It is a pure business. Lijjat means tasty: Earlier they do not had any name of the organization but after a few years they had decided to give name which is ‘LIJJAT’ Introduction: Be it an evening snack, or a banquet or a meal at home, The Papad finds its due place on the dining table. of Indian meal is complete without it, and India’s biggest ‘Papad’ success story is Undoubtedly, Lijjat. Everyone enjoys ‘rags to riches’ stories and everyone likes tales of stupendous success achieved through sheer determination. The story of Shri Mahila Griha Udyog Lijjat Papad is all that much more. Shri Mahila Griha Udyog Lijjat Papad, popularly know as “Lijjat”, is an Indian women’s organization manufacturing different Products of village industries. The organization’s registered office is Situated in Mumbai and it has 69 centers and 31 divisions on different states. Lijjat is spread all over Indian.
6
Stared in 1959 with a capital of Rs. 80, Lijjat today has a Annual turnover of around Rs.470 crore (Rs. 4.7 billion), with Rs.24 In exports and has around 42,000employees. Lijjat is primarily a cottage industry, urban by its origin that has spread to the rural areas. It is considered as one of the most remarkable enterprenual initiative by woman that is identified with women empowerment in India. Lijjat shows how an organization can infuse Gandhian simplicity in all its activities. Shri Mahila Griha Udyog Lijjat Papad is registered under The KVIC Act- (Khadi & Village Industries Commission) The Khadi and village Industries Commission (KVIC) is a statutory organization established in 1956 by an Act of parliament. It plays a pivotal role in the strengthening of rural economy by promoting and developing Khadi and village industries.
The main objectives of the KVIC include skill improvement. Providing employment in rural areas, and transfer of technology, rural industrialization and promoting self-reliance among the people and to build up a strong rural community base. The functions of the KVIC are generally to plan, promote, organize and assist in implementation of programmers for the development of Khadi and village industries.
Three Golden Rules: Besides basic principles like self-reliance, co-ownership and faith in dignity of labour, the institution has also formed three ‘Golden Rules’ to business lijjat try to follow their three Golden rules at any cost in all branches in all over India 1. All the rights of the institution must belong to members only. 2. There must be maintenance of “Lijjat” quality at any cost. 3. There must be clean and time bound accounting system. All the Lijjat branches follow these three Golden Rules
7
HISTORY: On March 15, 1959, they gathered on the terrace of their building and started with the production of 4 packets of Papads. They started selling the papads to a known merchant in Bhuleshwar. From the beginning, the women had decided that they would not approach anyone for donations or help, even if the organization incurred losses. Chaganlal Karamsi Parekh, popularly known as Chaganbapa, became their guide. Initially, the women were making two different qualities of papads, in order to sell the inferior one at a cheaper rate. Chaganbapa advised them to make a standard papad and asked them never to compromise on quality. He emphasized to them the importance of running it as a business enterprise and maintaining proper accounts. In 2009, Lijjat had a turnover of Rs 3.5 billion and exports worth Rs.170 million. It employed 42,000 people in 62 divisions all over the country. The 69nd branch became operational at Jammu and Kashmir in 2002, enrolling over 150 members. Lijjat marks its 50th year of existence on March 15 2009
Founders: Seven women with no special skills but a strong determination to earn dignity as individuals Jaswantiben Jamnadas Popat Parvatiben Ramdas Thodani Ujamben Narandas Kundalia Banuben N. Tanna Laguben Amritlar Gokani Jayaben V. Vithalani Jaswantiben Popat: Was in her twenties when Lijjat was started. Shri Mahila Griha Udyog Lijjat Papad (‘Lijjat’) was registered as a cooperative under her leadership. Always believed in providing work that led to self dignity for women.
8
Received The Economic Times “Businesswoman of the Year” Award in 2002. Chaganlal Karamsi Parekh: One of the eldest members of the Lohana Community. Chaganlal Karamsi Parekh, popularly known as Chaganbapa, became their guide. Guide and philosopher of Shri Mahila Griha Udyog. Recommended production of a standard product.Stressed the importance of quality. Importance of running Lijjat as a business enterprise.Role in getting formal recognition from KVIC Core values: Shri Mahila Griha Udyog Lijjat Papad is synthesis of three different concepts, namely: 1. 2. 3. The concept of Business. The concept of Family. The concept of Devotion.
"Who owns Lijjat?" In July 1979, the general secretary of a trade union tried to interfere in Lijjat's affairs, making certain demands on behalf of a few member-sisters. L. C. Joshi, Labour Advocate of Bombay and a well-known industrial relations expert, was called for consultations. In his observations on "Who owns Lijjat?", he clarified that member-sisters were competent to take a decision for their own and it was not open for an outside agency to interfere with the internal working of Lijjat. Organization Structure: In order to ensure that the working of the trust was professional, an organization structure and certain professional guidelines were put in place. Member-sisters owned the enterprise. Any women, irrespective of caste or religion willing to work in any capacity could become a member by signing a pledge of devotion to the basic tenets of the organization. It was a commitment to earn legitimate honest income thought wok on a cooperative basis.
9
Six Offices - Bearers 1. Smt. Jyoti J. Naik - President 2. Smt. Pratibha E. Sawant - Vice-President 3. Smt. Sunanda R. Belnekar - Secretary 4. Smt. Swati R. Paradkar - Secretary 5. Smt. Priyanka G. Redkar - Treasurer 6. Smt. Sheetal S. Koyande – Treasurer
Lijjat believes in the philosophy of sarvodaya and collective ownership. It accepts all its working members as the owners and an equal partaker in both profit and loss. The members are co-owners and fondly referred to as "sisters". All the decisions are based on consensus and any member-sister has the right to vote a decision. Men can only be salaried employees (accountants, drivers or security guards), and not the members of the organization (i.e. they are not the owners).
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Products: THE LIST OF PRODUCTS AVAILABLE: Papad (five flavors: lasan, moong, mirch, Punjabi and urad) Khakhra Appalam Masala Vadi Gehu Atta(Wheat flour) Bakery products Chapati SASA Detergent Power SASA Detergent Cake (Tikia) SASA ilam Detergent power SASA Liquid Detergent Place: Lijjta is spread over in seventeen Indian states. It has many Branches in many in states of India. It almost has about 69 Branches in all part of india. It is well settled in western part of india for e.g. in Maharashtra and Gujarat. In 1968 first branch outside Maharashtra was established at Valod, Gujarat .lijjta started first branch in M.P the first branch was in 1985, the Lijjat branch at Jabalpur. Lijjat have branch visually all states of india. Exports accounts for Rs 170 million, merchant exports Major countries are UK, USA, Australia and European Countries. Promotion: At Shri Mahila Griha Udyog Lijjat Papad, they believe that the best promotion they Could possibly receive is by word of mouth. Therefore they concentrate more on cost Effectiveness and quality rather than on more expensive modes of promotion like Advertisements. Therefore annual expense on advertisement and promotion amounts to Rs. 60 lakes,About merely 0.2% of total turnover. The extremely famous ‘bunny rabbit’
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campaign continues to be aired on specific regional channels. For e.g. Alpha Guajarati, Alpha Bengali, Sun etc. Quality Check: The papads are prepared in different parts of India, the quality of the water used usually varies, and so can the quality of final product. To prevent any inconsistencies, Lijjat has its own laboratory in Mumbai, where the final products are tested and coded. In the monthly meetings, the quality issue and modifications are tested. Ingredients purchased and distributed by the Central Office to maintain the quality. Procurement of Ingredients o Urad dal from Myanmar o Asafetida from Iran o Black Pepper from Kerala Surprise visits to various branches to ensure production conditions are hygienic. When a new branch of Lijjat opens, a neighboring Lijjat branch helps it by guiding and training new members. Successive failures of a branch to abide by the organization's philosophy of consistent quality and production of papads, the central committee reduces the daily wages of its members by 1 rupee. Distribution Flow Chart: The entire cycle starts with a simple recruitment process. Any woman who pledges to adopt the institution's values and who has respect for quality can become a member and coowner of the organization. In addition to that, those involved in the rolling of the papads also need to have a Clean house and space to dry the papads they roll every day. Those who do not have this facility can take up any other responsibilities, like kneading dough or packaging or testing for quality. Packed papads are sealed into a box (each box holds 13.6 kg) and the production from each centre is transported to the depot for that area. Mumbai alone has sixteen branches and six depots. Each depot stocks production from the nearby three to four branches -roughly about 400 boxes. In some smaller towns or villages, the branch itself serves as the depot. The depots are our storage areas as well as pick up points for distributors.
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Collection Flow Chart: Their exports alone account for Rs 24 crore (Rs 240 million). They are not directly involved in exporting, but recognized professional merchant exporters (who also export other food products) place an export order. Only on receiving the full advance through a cheque do they begin production. Because all exports are done from Mumbai, the supply also comes from here. Export production is of the same quality as daily production. In fact, they send some of the daily production for export.
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The Growth: Membership has expanded from an initial number of 7 sisters from one building to over 42,000 sisters throughout India. The main reasons of expanding of lijjat was when lijjat started very few women was allowed to go and worked outside their house. As lijjat first product was papad .Many women known how to make papad. As of making papad does not any technical skill or any education so women can easily make papad so their started joining lijjat. Because of this there can help their family with some finically support. The organization is wide-spread, with its Central Office at Mumbai and its 69 Branches and 37 Divisions in different states all over India. Early organizations have their office in Bhuleshwar then their shifted to Bandar. The organization has widely speared all over India. The 69 branches are spread over in seventeen state of India. The venture started with loan of Rs 80. Lijjat’s annual sales increased from Rs 6,196 in 1959 to more than Rs 4.7 billion in 2009, with exports itself exceeding Rs. 240 million. Business Transparency: Each branch office is responsible for setting a target for monthly production and the marketing. Each Lijjat centre has a clearly delineated marketing territory to avoid competition amongst centers .Commission agents are attached to almost all Lijjat Centers and they account for a major part of the Lijjat sales. Lijjat has a separate marketing, sales, and advertising divisions same prices across the category
Flexibility: The decentralized production methodology has ensured that the women do not have to leave their homes for work It allows them flexible working schedule enabling them to discharge other household responsibilities This account for the easy acceptance of the work among such a large number of women since they feel their economic activity will not disrupt the family by their absence Men are also less hostile to women working at
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home for extra income than travelling to a workplace Self selection of work by the members.
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SWOT Analysis: Strengths: Sincere Hard work Development of woman by providing them a living / Employment. Maintaining the same standard over the last 50 years. Having a unique status in the country. Weakness: Lack of marketing skills Less use of technology Limited capital Semi-literate Opportunities: Expanding horizontally as well as vertically Increasing export Business can be made sustainable/profitable without high initial investment Threats: In the Papad industry, the major competition or threat is posed to the institution by Ganesh Papad In the spices industry, the Haldiram and MDH are the major competitors In detergent, there are many competitors like HUL, P&G etc.
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Awards to liijat: “Best Village Industry” for the period 1998-1999 to 2000-2001 from “Commission of Khadi & Village Industries”. A “Businesswomen of the Year 2001-2002 for Corporate Excellence” Form the Economic Times In January 2003 it received the award for “Best Village”at the hands of Hon’ble Prime Minister Shri Atal Bihari Vajpayee
On 21st December 2005 institution has received has Received the “Brand Equity Award at the hands Hon’ble President of India, DR.A.P.J Abdul kalam
Social Welfare: On several occasions, the Lijjat member-sisters have undertaken social service Activities such as distributing nutritious food for poor children, donating money for Conducting community marriage, instituting prize- money fore spread of primary Education, undertaking blood donation drive, organizing heath camps, plantation drives and Even making donations to Government bodies. In 1999, the Mumbai City felicitated Smt. Rukminiben B. pawar, Lijjat President, as an outstanding woman in the field of social work. Lijjat undertook the rehabilitation of chincholi (Jogan), the earthquake affected Village in the Latur district of Maharashtra. Member-sisters donated money from their daily vanai (wage).After the 2001 Gujarat earthquake, all the branches of Lijjat gave a total donation of more than Rs 4.8 million, including Rs 1 million from the central office. Lijjat built forty houses for the rehabilitation of the people of Bhujpur (Bhachau) in Kutch District.Literacy campaign ‘Akshardeep’ started in 1999 for its members in Bhubhaneshwar After the 2001 Gujarat earthquake, all the branches of Lijjat gave a total donation of more than Rs 4.8 million, including Rs 1 million from the central office Literacy programmes in other states
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Guidance on further studies Educational and hobby centres for rural women computer training to sisters’ children Loans and housing assistance. Summing it up: The most interesting lesson managers can pick up from Shri Mahila Grihan Udyog
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Lijjat Papad, sticking to its core values the past forty years. The institution thus paves the way for women to become self-reliant and self-confident. In the process Lijjat provides them the platform for improving their status in the society, which is their justified right. The ladies are brimming with confidence. Lijjat is an institution which has stood the trial of time and tribulation and has achieved success because when basic management principles and uncompromising quality consciousness are applied in conjunction with sound business principles, there can be only one way for the ladies of the Lijjat-a brighter and happier tomorrow, the pride and joy of fulfillment. Lijjat makes almost equal money for its entire people and makes just enough money. of one ould become a millionaire by setting up another Lijjat. If this aspect of Lijjat’s operations is not very good news for machine and money-driven corporate owned by tycoons, the essential message that Lijjat’s success conveys has definitely fired the imagination of women and rural folks. In many parts of Maharashtra and Gujarat, locally manufactured and marketed eatables are catching on. There is hardly any GO or voluntary organization nowadays which does not try create employment and funds, small or big, along Lijjat’s line. As a business house, Lijjat itself has been trying to rewrite its own success with another product with varying degree of success. Grounded spices, Khakhra, black pepeer powder, detergent powder and cake, Vadi, bakery products, wheat filthier are on Lijjat’s menu but Papad with a sales figure of Rs 288 crore remains at the top. Among similar ventures which came a cropper are incense sticks, leather bags, Tiffin boxes andMatchsticks. But most promising among them is the chapatti division with six branches inMumbai. Here, the women come in to work at around seven in the morning and makeContributed by members of chapatti as they are prepared in homes. Packed Lijjat chapatti, four for Rs five, are available at retail shops in Mumbai. These centers also procure orders from hotels, office canteens, etc. and the catering in Mumbai includes some big names from the hotel andCatering industry. ‘As the pace of life increases, little time is available to most people in Metros like Mumbai to cook their own food. There are good prospects for women forming Small groups and catering to the local demand for homemade chapatti or similar products,” Says Ashok Bhagat, a leading social worker engaged in tribal welfare activities in the Gumla District of Jharkhand. ext time there is Lijjat Papad on the table,
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you sure can see a Chandrasekhar or Suja’s dimpled fingers deftly roll out the crisp Papad. It is made with love and care, just like from their mama’s kitchen.
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