Submitted To: "Detailed Study of Shri Mahila Griha Udyog Lijjat Papad"
Submitted To: "Detailed Study of Shri Mahila Griha Udyog Lijjat Papad"
Submitted to
Submitted By
Roll No. 7506
VAISHNAVI ANAND RANE
Under The Guidance Of
PROFESSOR : KISHOR CHAUHAN
Submitted to
Submitted By
VAISHNAVI ANAND RANE
Roll No. 7506
Under The Guidance Of
PROFESSOR : KISHOR CHAUHAN
This is to certify that Ms. VAISHNAVI ANAND RANE Roll No. 7506 has worked and duly
completed Her project work for the degree of Bachelor in Commerce (Accounting &Finance)
under the faculty of commerce in the subject of Account and Finance and her project is entitled,
“DETAILED STUDY OF SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD”
under my supervision.
I further certify that the entire work has been done by the learner under my guidance and that no
part of it has been submitted previously for any degree of diploma of any University.
It is her own work and facts reported by her personal findings and investigation
Date - _________
Principal
I the undersigned Ms. VAISHNAVI ANAND RANE here by, declare that the work embodied
in this project work titled“DETAILED STUDY OF SHRI MAHILA GRIHA UDYOG
LIJJAT PAPAD”, forms my own contribution to the research work carried out under the
guidance of Mr. KISHOR CHAUHAN is a result of my own research work and as not been
previously submitted to any other University for any other Degree / Diploma to this or any other
University.
Wherever reference has been made to previous work of others, it has been clearly indicated as
such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and presented
in accordance with academics rules and ethical conduct.
Certified By,
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.
I would like to thank my Principal, Dr. Leena Sarkar for providing the necessary facilities
required for completion of this project.
I would also like to express my sincere gratitude towards my project guide Mr. Kishor
Chauhan whose guidance and care made the project successful.
I would like to thank College Library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly and indirectly helped me in the
completion of the project especially my parents and peers who supported me throughout my
project
EXECUTIVE SUMMARY
SHRI MAHILA GRIHA Udyog LIJJAT PAPAD, popularly known as ‘lijjat’, needs no
introduction. Lijjat is women’s organization manufacturing different products of village
industries, having its central office at Mumbai. Lijjat is spread all over india. It has 69 centers
and 31 divisions in different states.
In 1959, girgaum, Mumbai Shri Mahila Griha Udyog Lijjat Papad made a beginning under the
blessings of Shri Chhanganlal Lkaramshi Parekh popularly known as ‘ Pujya Chhnganbapa’ who
was a member of the servants of Indian society and a highly successful social worker. In 1996 it
was recognized by the khadi and village industries commission under the chairmanship of Pujya
Uchhangral N. Dhebar.
Any women who can render physical work in this organisation without caste, creed and color
and agrees to abide by the objective of the organization can become a member of the
organisation from the date on which she starts working. Papad production work starts up in the
early hours of the morning i.e. 4.30 am every day. Mini bus is provided which picks up the
members from the closest point of their residence to the branch and back home.
“DETAILED STUDY OF SHRI MAHILA GRIHA UDYOG
LIJJAT PAPAD”
CHAPTER 1 : INTRODUCTION
The study guides you about the detailed study of the small-scale industries i.e., SHRI MAHILA
GRIHA UDYOG LIJJAT PAPAD. This study will give you a detailed information of problems
faced by small scale industries. The study will help you to find out the solutions that are faced by
the small-scale industries.
SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD had faced a lot of problems and challenges in
the past few years . On the basis of those problems and challenges faced by them ,the study will
give you the detailed study of the problems faced by small scale industries.
The growth of the Lijjat organisation is to be seen on the larger canvas of women and their
development within the framework of progress in the developing countries. In India, apart from
emphasis on education and health, The first 3 to 5 years plan did not prescribe any administrative
structure for women’s developments leaving it to the voluntary organisation.
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1.3 BRIEF PROFILE OF THE STUDY AREA
This aspect includes the study area within the local boundaries of Mumbai and Navi Mumbai.
The customer reviews has been taken through questionnaire from the consumers of SHRI
MAHILA GRIHA UDYOG products within Mumbai and Navi Mumbai.
This aspect includes the study area i.e, Bhandup branch of SHRI MAHILA GRIHA UDYOG
LIJJAT PAPAD. The reviews from employees of Bhandup branch has been taken into
consideration in this study.
(SMGULP)
1.4 INTRODUCTION :
SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD (SMGULP), popularly known as lijjat is an
organization which stands for women’s strength and fully owned and run by women. It is the
women’s organisation of the women, by the women and for the women. It was started on 15th
March 1959 with 7 lady members with a borrowed sum of Rs. 80 at Girgaon in Mumbai and it
has completed 50 years and it celebrated Golden jubilee year in 2009.
The turning point of the organisation took place in 1966 when it was registered under the
Bombay Public Trust Act, 1950 and also registered under Societies Act 1860 and got recognition
from Khadi and Village Industries commission (KVIC) as a village industry. There are 85
branches and 88 divisions across the country with 44,000 plus women as sister members all over
India and with, a sales turnover of Rs.1000 crores which includes Rs.52 crores of export.
Any women who can render physical work in this organisation without caste, creed and colour
and agrees to abide by the objective of the organization can become a member of the
organisation from the date on which she starts working. Papad production work starts up in the
early hours of the morning i.e. 4.30 am every day. Mini bus is provided which picks up the
members from the closest point of their residence to the branch and back home.
Every branch is headed by a Sanchalika who oversee the production on of the branch. The
central office has managing committee, which consist of 21 members. Every year 4 members
resign and are eligible for re-elected, thus every year, during the General Body meeting there is
election of 4 members. After the elections, in the first meeting, the managing committee elects
office Bearers i.e. Presidents, Vice-presidents 2(two) secretaries and Treasures.
All the branches are autonomous units and profit or loss as the case may be, is born by the sister
members of the branch by increasing or decreasing their rolling charges accordingly. The credit
for rapid process goes to the constant vigilance on the part of sister members maintaining the
quality of Lijjat papad with their hard work. Besides lijjat papad the organisation has other
products such as-Masala, Detergent powder and cakes, Bakery Products,Chappaties,Gehu Atta.
The exports are made through Merchant Exporters to countries like United Kingdom(UK), USA,
Middle East Countries, Singapore, Hong Kong, Japan, Australia and other countries. The
Organization has received an award from Khadi and village Industries commission as a Best
village Industry for the period 1998-1999 to 2000- 2001.
On 6th September SMGULP has received the Economic time Award of Business Women of the
year 2001-02 for corporate Excellence. In January 2003 Organisation received the award for the
‘Best Village Industry at the hand of hon’ble Prime Minister Shri Atal Bihari Vajapayee at New
Delhi.
Lijjat was featured in various T.V Channels, which includes BBC world in the program
“Business Bizzare”. The organisation, over the years, has provided the platform to improve
sister-members status in society.
Lijjat papad is a brand with a difference. This brand is a special one because it makes a
difference in the livelihood of thousands of poor women in India.
Shri Mahila Griha Udyog Lijjat papad was started 54 years ago in 1959 on a mere sum of Rs.80.
Seven ladies started preparing papad and from there, this story of a movement started. From that
Rs.80 the brand has grown to become Rs.1000 crore and more importantly many households
whose ladies are working with lijjat have been saved from the clutches of poverty.
Papad is a form of Indian crispy bread. The papad is taken as a snack and also along with lunch
and dinner. Lijjat has become an integral part of the Indian palette through sheer determination
and hard work & sister members of lijjat. The most important factor that made this brand a
success was the careful operation/ planning that goes behind the brand. It would humble even the
smartest management graduate that ordinary women run this entire company.
The Lijjat brand built on certain core values that has been ingrained into the entire system.
It can be said that the organisation derives its values from the father of the nation, Mahatma
Gandhi’s idea of sarvodaya. Every Morning a group of members go to Lijjat office to knead the
dough. Another group goes to the office to collect the “quality checked” dough for rolling. These
women give the previous days papads for quality check. Another team packs the tested papads.
Every member gets the rolling charge (Vanani) based on the productivity.
The quality checks process is also rigorous. The member should take a quality pledge and ensure
that the house is neat and clean and there is a separate place for this process in their homes.
Every member is trained to make a perfect Papad. If any member is found not adhering to the
quality standards, she will be given due caution notice and if it continues then she is dismissed. If
during the testing, any lot is found below standard then the entire lot is destroyed.
The entire organisation is decentralized and managed by the committee of 21 members. All the
members of the committee have veto power and this ensures that decisions are based on
consensus. The committee decides on sharing of profit and all the members of the society get
equal share of profit. The decentralization gives the branches power to do the quality checks and
the responsibility to maintain accounts. All the members (called as Ben) are owners of this
movement and this automatically ensures greater accountability.
The brand is having the strength of “consistently Good Quality” as its USP. Recently this brand
is also facing some competition from other competitors. Hence like other brands, Lijjat is
thinking seriously about advertising the product.
The brand communicates its crispness and quality through its ads. The ads Features Bunny
(mascot) and a very popular jingle ‘Kurram Karram” The positive words of mouth, the
advertisement and the consistent good quality and distribution made this brand highly effective
and distribution made this brand highly successful.
The company has also diversified into detergent brand SASA and other food products. The brand
is a unique success story. The story of movement that changed the lives of more than 44000 poor
women.
SMGULP has three branches for its operation such as Prabhat Road which covers Gokhalenagar,
Janwadi, Maharshinagar, Kalewadi, FTII (Film and Television Institution of India) and part of
Pune city. whereas under Dhyari the area covered is Sinhgad Road, Warje-Malwadi,
Khadakwasala, Papadnagar etc. while the Hadapsar 124 covers areas of Sadesataranali,
Bhekarainagar, Keshavnagar and some part of Hadapsar. The areas are relatively very close by
for in the operation area of SMGULP and for such a study,it was essential as to how many hours
of work the women put in towards the rolling activity of papad.
PIONEERS OF LIJJAT
Shri Mahila Griha Udyog Lijjat Papad (SMGULP) had an inconspicuous and simple beginning
in 1959. Its main product, papad has a reasonably long shelf life it can be roasted or fried and it
serves as snack or taken along with food. Throughout India, since generations, there have been
varieties of papads made and stored at home. Most women in general know the art of rolling out
papads and the raw material needed is easily found in a normal kitchen. Hence the workers, the
raw material and the market were readily available for the commercial production of papads.
It all began on March 15, 1959 as a united effort by seven women at making papad on the terrace
of their flats in an old large residential building, in Mumbai one of the five building known as
Lohana Niwas in Girgaum a thickly populated area in south Mumbai. These women were
Jaswantiben Jamnadas Popat, Parvatiben Ramdas Thodani, Ujamben Narandas Kundalia,
Banuben N Tanna, Laguben Amritlar Gokani and Jayaben V. Vithalani and one more whose
name is not available. They belonged to the Lohana Community. Mostly of them hailed from
Gujarat, out of the seven women only Jaswantiben is now around to tell the tale of those early
days. She had studied for a short while in school as a child and had not even passed the second
class examination.3 She was in her early 20’s with three young children in 1959. She explained
how near their house. One Shri Laxmidasbhai had attempted to make and sell papads; but was
soon running into a loss.
These seven women, who were friends decided to make this venture despite its loss of Rs. 80.
With the needed ingredients from their homes, they rolled out papads on the terrace of their
building. After drying and packing them in plain plastic bag, they gave them to be sold to known
merchant in Bhuleshwar near where they lived. Jaswantiben Popat said they had not invested any
money at all and they were able to pay back the loss suffered by Laximdasbhai by selling the
papads that they made. As sales increased, they increased their production. A cupboard was
brought to keep the ingredients and utensils. During the first year they stopped production during
the rainy season due to lack of facilities to dry the papads. But by the next rain, they 125 had the
stove and cot over it’s where they would dry the papads. They had tried using coal for heating
but it coloured the papads. Being thin, they dried quite soon. In fact one of them told that the
process became so standardised that took only 15 minutes to dry.
Within three months, there were about 25 women working in the group. In two years, the number
rose to over 150 women. 4 Jaswantiben said that they came through word of month in the
beginning and later through advertisement in the local vernacular newspaper.
With the profit that they made in six months, they brought half a ’tola’ (gram) of gold for each
one of them. 5 This equal sharing of profit or loss was to become the standard practice of the
organisation. As rooms fell vacant, in Lohana Niwas they were rented and gradually the women
had acquired eight rooms for put among their works. 6 By the end of the third year the terrace of
the Lohana building could no longer accommodate all of them.
A little after a month or two of their commencing operations Chaganlal Karamshi Parekh alias
Chaganbapa, a respected elder of the Lohana community became their guide and philosopher. In
order not to compromise on quality, he advised them to standardize the specific quality of the
papad production.7 Intent on retaining their independence, the women had decided from the
beginning not to approach anyone for donation even if they ran into losses. Chaganbapa taught
them the important of running the organisation as a business enterprise and of keeping an eternal
watch on every facet of it’s working and maintaining proper accounts.
Two men whose wives were among the first seven helped them in keeping accounts in the
earlier years, when lijjat papad was in its infancy. Later when the organisational structure was
established, accountants were appointed to do this work, Lijjat had a monthly financial
accounting system from its inception on March 15, 1959.
Accounts were written on day to day basis and on the last day of every month, profit and loss
account as well as the Balance sheet had to be completed for e.g for the month of January profit
and loss account as well as balance sheet had to be ready in January 31. If for any reason the
monthly accounts were not ready organisation would remain closed till the accounts were not
ready. The annual account i.e annual profit and loss as well as annual balance sheet were just an
accounting formality for lijjat as all the financial decisions were taken on the basis of monthly
account only. 1966-67 126 was the first year when accounts were prepared as per provisions of
the Societies Registration. Act and the Mumbai Public Trust Act.9 The basic soundness of the
organisation arose from the financial creditability of it’s functioning.
The Salient Feature of the organisation lays down in the first few years of it’s beginning and
continued through it’s later years. There are no written documents for these years only the oral
testimony of the women who set up the unit in those days. Initial attempts to start branches in
Malad a suburb of Mumbai in 1961 and Sangli in Maharashtra in 1966 were unsuccessful.
However, in 1962-63 the annual sales of papad rose to about Rs. 1.82 lakhs.11 In July 1966 the
organisation registered itself as a society under the Societies Registration Act 1860. On who is
founder Chaganbapa, recommendations U N Dhebar,who was there chairman, of Khadi and
Village Industries Commission (KVIC) (government of India)visited the organisation in July
1966. In September a formal recognition was granted to the organisation as a unit belonging to
the processing of cereals and personally inspected pulses industry group under the khadi and
village Industries Act.12 The KVIC granted a working capital of about eight lakhs of rupees and
tax exemptions.
1.6 THE GENESIS OF THE ORGANISATION
It was a hot summer day. The sun shone brightly in the cloudless sky. Most of the women in
habitants of Lohana Niwas, an old large residential building at Girgum, a thickly populated area
in South Mumbai were busy attending their ususal domestic chores. But a few of them seven to
be exact, came out of their rooms and gathered on the terrace of the building (Lohana Sadan).
They soon started a small hardly drew anybody’s attention. Mr. Chaganlal Parekh (Late),
popularly known as Chagan Bappa, became a guide who gave them lessons of quality product
and quality business A handful of social workers were also present. The gathering was over soon
only after rolling of 4 packets of papad and taking a firm decision to continue making papads.
This function added a new chapter in the history of organisational efforts in quest of sarvodaya.
Shri Mahila Griha Udyog Lijjat Papad (SMGULP) was launched. It was a humble beginning.
The day 15th march 1959 7 ladies had set the ball rolling. As the days went by, many more
ladies joined and this pioneer batch of the organisation started to grow.
In those early days the path was not easy. The organisation had it trials and turbulence. Faith and
patience of the members were put to test on several occasions. They had no money. Literacy, the
organisation started from scratch on borrowed sum of Rs. 80/- on the condition that must earn
and return Rs. 200/- within a stipulated time.
The organisation has opted for the goal of self-reliance and self-growth from very beginning. As
a matter of principle, no monetary help was to be sought from any quarter. Even voluntarily
offered donations were not accepted. So work started on commercial footing as a small scale and
venture. Difficulties and hurdles were there but they were accepted by the members as a test and
trial of their convictions and they met their with a smile.
What really helped the organisation was excellent quality of papad, which has remained uniform
from, the very first day of production. At no time the members have allowed it to deteriorate.
The principle upon which the organisation is based, have made Lijjat Papad a successful
organisation.
1.7MAJOR EVENTS
The organisation started to regulate its activities since 1966. It was turning point. One of very
important events in the life of the organisation was adoption of a former constitution by its
member on 25th July 1966. The organisation was then registered as a ‘Society’ under the
provisions of Societies Registration Act, 1860 as well as Public Trust under the provisions of
Bombay Public Trust Act, 1950. The organisation was recognized by KHADI AND VILLAGE
INDUSTRIES (KVIC) commission during the same year and that was the great boost the
organisation had ever received.
1) The Organisation has been of the women, by the women and for the women and has shown
tremendous progress not only in the spheres of manufacturing quality products but also in
management and is known all over the world. Despite the fact that all these sister-members of
the organisation are semi-literate or illiterate, the dedication is to make the best product and to be
total loyal to the organisation.
2) The tremendous growth of the organisation over past 50 years is definitely seen as progress to
the prosperity of the women.
3) The main motto of the organisation is bringing empowerment to the women if is also clubbed
with manufacturing of quality products.
4) No empowerment can be measured unless there is a financial empowerment and to have such
financial empowerment, what is required of the women is creating a product which will create a
demand in the market and there will be ongoing sell of the product which will in turn bring in
income to the organisation for financial empowerment to the women.
Right from 1959 the organisation achieved different heights of the progress. Initially with one
product and over last 20 years with the multiple products. In 1963, the organisation got
registered with Charity Commissioner as public trust and also registered under societies Act. In
the same year the recognition from KVIC came handy for furtherance of progress. Due to this
recognition, the path towards the progress of events for the organisation was made easy since
various concessions (financially and otherwise) were made available to the organisation.
The progress of the organisation solely depended on co-operation of the sister member who
were financial weak and income from the work/ compensation for the work received by them,
made them empowered
Thus both these factors took the organisation to the path of the progress and in addition to such
progress it is the product that made by the organisation, strong through it is apparently seen as a
very small product for the daily use, and the same is manufactured in many of the house hold,
still the product of the organisation being a quality one, tremendous demand was fetched.
As on date, despite there are many papad manufacturer in the country, they all are small and
sundry and have hardly market share of 25 to 30 % where as Lijjat stands to 65 to 75 % of
market share.
Being democratic system employed in the organisation it has achieved a confidence in the mind
of the consumers that price paid by them for the cost of the product ultimately helps towards
financial empowerment of women. From the sale of Rs. 80 in 1959 to the sale of Rs. 750 crores
just over a period of 50 years, the organisation is riding high and optimistic to achieve Rs. 1000
crores with in the next 2/3 years.
While it can not be estimated or predicted the future of this organisation in coming 50 years as
the activity rolling of papad is slowly diminishing in the fraternity of the women yet the
organisation will find solutions to these problems (definitely not adhering to machined made
papad).
It is also felt by the organisation that there is need of certain other product (Labour oriented and
not machine made) and hence starting of detergent unit chappati unit, Masala units and vadi unit.
All these units are labour intensive and are parallel to the cause of women empowerment like
papad.
There is managing committee of 21 members to manage the affairs of the whole organisation .
There are also Sanchalika (one or More) for center to look after all the daily affairs of the
concerned center but the work of the organisation is that each and every member can take any
initiation or any initiate or any decision. At the same time each and every member has got the
veto power. All the decisions, whether major or minor, have to be based on the consensus among
the members. Any single members objection can nullify a decision.
Another important fact about the organisation is that a male cannot become it’s member and any
male employee whether working honorary or on salary basis has no right whatsoever in the
organization.
All these concepts are completely and uniformly followed in this organisation. As a result of this
synthesis, a Lijjat way of thinking has developed their in. The Organisation has adopted the
concept of business from the very beginning. All its dealings are carried out on a sound and
pragmatic commercial production of quality goods and sell them at reasonable price. It has never
accepted and will not accept any charity, donation, gift or grant from any quarter. On the
country, members donate collectively for good cause from time to time according to their
capability.
Besides the concept of business, the organisation along with it’s all sister members, have adopted
the concept of mutual family affection concern and trust. All the affairs of the organisation are
dealt in a manner similar to that of family carrying out its own daily household chores. But most
important concept adopted by the organisation is the concept of devotion. For the member a
sister, employee and well- wishes, the organisation 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 benefit but the
benefit of all. In this organisation, work is worship. The organisation is open for everybody who
has faith in its basic concepts.
Shri Mahila Griha Udyog Lijjat papad (SMGULP) has also formed three ‘golden Rules’.
3. There must be clean and time bound accounting system. All the Lijjat follows these three
golden rules.
There is a committee of 21 sister-members that decides how the profits are to be distributed. The
organisation generally buys gold coins-(5 gm or 10 gm,) depending on the profit. Everyone gets
an equal share of profit irrespective of who does what work, irrespective of seniority or
responsibility.
Even a ben (sister-members) that has recently joined gets the same share as others who have
been with organisation since long. Each branch calculates its profit and divides its quality among
all its members.
Mumbai has 12,000 members; the rest of Maharashtra has 22,000 and Gujrat has between 5,000
and 7,000 members Pune branch has 1280 members.
All sister members of the organisation are the owners. As mentioned earlier, all profit or loss is
shared. Only members have the authority to decide the manner in which profit or loss be
apportioned among themselves.
The committee of 21 members manages the affairs of the organisation. There are also
Sanchalika, or Supervisor from each center to look after daily affairs of a center. But the work of
the organisation is such that each and every member can take any initiative or any decision.
Another important fact about organisation is that no male employee whether working or
honorary or salary basis has voting rights.
Other than following this philosophy for our organisational set up, the organisation tries to avoid
the usual ‘management nightmares’. For instance, production is not carried out in one central
location, but in hundreds and thousands of individual homes.
The branch system ensures that every activity happens within its own ambit. Testing of quality
and packing are done at every branch.
Certain activities however are centralized. All raw materials are purchased in Mumbai/Pune and
then distributed to the 79 branches to ensure consistent quality of Lijjat papad.
Given the vastness of India, every region produces different quality of Urad, rice spices, etc. If
procured locally, then final product would never be consistent in quality and lijjat would have
USP (Unique selling Proposition) in the market.
The other centralized process is the grinding of flour. The organisation has its own grinding
mills, one in Vashi, (Navi Mumbai) and one in Nasik (In Maharashtra). Since the raw material is
purchased in Mumbai, grinding the flour at a company owned mill helps reduce costs.
Pricing of the products is also done at head office. The price factors in the cost of raw materials,
transport, taxes distributers’ commission, profit percentage and so on.
Marketing and Selling are two different activities in every organisation. The marketing
department creates a demand for the product and sales department fulfills the demand. In
marketing departments, for creating a demand it employs various tools to make the consumer
attracted to buy the product.
The work of marketing department is a continuous process and in case it stops, the products
dwindles down. Equally the work of marketing department is on high end but the sales
department if does not cope up with the speed of the marketing department, then preference of
the consumer shifts to some other products.
In Lijjat Papad, there was, there is or there will be no marketing department but only sales takes
place. This works against the dictum of the marketing department. The reason behind this is
quality created by the women of the organisation and taste buds of the consumers.
Many producers of papad tried to copy down the quality of Lijjat but could not manage to any
extent to bring up there in the market and over a period of time failed miserably. Since the
product they manufactured did not have the MIDAS touch of women of Shri Mahila Griha
Udyog Lijjat Papad.
In any business, manufacturing of any product is not very challenging. Since the proponent has
definite directions of manufacturing processes by himself or he/she can borrow technology or
technicians or consultant and along with them required the infrastructure, such as land and
building plant and machinery etc, then the products can get manufactured.
In SMGULP, while on one side because desired efforts to make a qualitative product known as
Lijjat Papad are made or the other side, management puts efforts in marketing of Lijjat Papad.
In late fifties and sixties, the household women started in search of employment and scenario of
the male dominant job market got divided into male and female employees. In such kind of
change, these women carved in for as many ready to use products as where available. Then Lijjat
Papad was very handy and working women in particular or even those at home preferred to buy
readymade papad instead of taking strenuous efforts to make them.
Added to the name of Lijjat Papad is a string attached of that of SMGULP i.e. the women
oriented business of community manufacturing product that is Lijjat Papad. The reason behind
the easy marketability of this product besides above is its quality and taste as also product to be
known to be some taste all over India and hence acceptability of the product by the masses was
immediate.
The marketing environment even today for Lijjat Papad, despite the fact that there are many
players manufacturing papads still enjoys full support from the buyers. Generally, it has been
seen that many of products get birth in the market There may be many reasons behind this but
the main reason is that new products with the better taste, better packaging, better marketing and
reasonable price. This scenario has been in food industry where there is constant change in
consumers behaviour.
There are many organisations that make the papad. Amongst them following are the competitors
of lijjat papad- Ganesh papad, samadhan papad, Bikaner papad.
The organisation i.e. SMGULP has for the last 50 years never faced any threats of marketing the
papads. There may be few other manufactures of Papad in the market as on date but major player
is SMGULP. The actual threat to the organisation is that the organisation is afraid of Shrinkage
of urban women’s participation due to which there is heavy demand for the product still since
papad is hand rolled, there is always shortage of Lijjat papad in the market and hence while there
is no threats from the competitors, the threat is that of the supplies.
“This is the women’s organisation of women, by the women and for the women”
All the sister members of this branch are its owners. All the profit or loss whatever it may be
shared or owned by the members jointly. In this branch 7000 kg. papad is produced daily. The
total sales turn over in this branch is25 crores per year.
Stress on quality
• If irregulation is found then the women are warned. If they persist then they might even be
shifted to different departments.
1.16 BRANCHES AND DIVISIONS
REGISTERED OFFICE
Pune Division:
Sanchalikas:-
Dhayari Division :
Lijjat manufactures several products of which the papad is the most famous:
2. Khakhra
3. Appalam
4. Vadi
5. Bakery Products
6. Chapati
7. Masala
The status of the women in SMGULP being that of sister-members automatically the principle
of HRD cannot be applied to them. The question then arises as to how organisation disciplinecan
be implemented/injected in the minds of these women and that too when most of the women are
illiteraters? The answer has been readily worked out by the women themselves. The actions of
these women are somewhat similar to that of Honeybees, that they collect the drops of Honey
from the flowers and uninterrupted carry it to the Honeycomb.
In Lijjat too there is no one superior, no one is inferior in discharging their duties to the
organisation.
The collective efforts of the women in SMGULP is aimed at making a quality product. The HR
stipulates a collective approach in making of any efforts towards smooth functioning of the
organisation which is inculcated.
Revolves only for the members of the staff and workmen. It does not however revolve around
the owners. It has been brought in the various chapters of this research work that women’s role in
SMGULP is as an owner and not worker or work women. In the circumstances the various
aspects of HRD does not apply to the women whose study is being undertaken under this
research work.
However certain areas where the question of maintaining quality, punctuality and deliverance of
papad as also safety in terms of food and allied areas are concern. SMGULP has taken support of
HRD and taken massive in depth training of the women, since the organisation deals with
women who are semi-literate or no literacy. One of the major aspects of HRD which is in
practice by the organisation is to adhere to fundamentals such as monetary-wise, respect wise
and there is no second thought of dealing with these women.
Information :
Information with increasing business other advances the need for information dissemination and
communication among sister members at various branches has increased. The monthly regional
meeting, annual general meeting and all India conventions of branches are held to keep the
member aware of organization’s activities and strategies, and to discuss issues such as quality
maintenance, production rates, the handling of accounts and everyday problems to assure a better
work environment.
Lijjat paprika, the in-house magazine, is published and circulated for a nominal rate to those
interested in the activities of Shri Mahila Griha Udyog Lijjat Papad (SMGULP). It is published
in many languages including English, Guajarati, Marathi and Hindi. Patrika has emerged as
strong mode of communication for information related to significant events and initiatives at
Lijjat, in addition to presenting article on women.
Initially most sisters were uneducated, but realized the important of education for their children,
especially daughters. Lijjat offers Scholarship for these children and encourages better
performance in studies. A literacy campaign for sister also began through literacy classes at
Girgaum on June 18,1999, At first, it was explained that literate women can read or write a letter,
maintain a bank account, pay bill, teach her children, assist her husband in his work; and live
independently, Later the managing committee decided to start such classes in all its branches.
Besides other literacy and information based activities, participation in various trade fairs and
exhibition held across India, Contributed to the popularity of the Lijjat brand. Such Participation
also builds self-confidence through exposure and training opportunities for sister-members who
plays a significant role in overall functioning of Lijjat.
Participation :
The Combination of inclusion and the active participation of women has endured as Lijjat
Backbone for 43 years. The interest of all sister are treated equally because the sister hail from
the Lijjat family. Any women irrespective of her religion, caste or class can become a member
after signing a pledge of devotion, which is her assurance for earning an honest income through
co- work. All sister-members across all branches of Lijjat- recite an all-religion prayer before
beginning their daily activities. The sisters are free to choose their activities such as making the
masala(blend of multiple spices), pounding the flour, weighing the flour, vending the dough,
rolling papads, receiving papads after weighing, checking the papads, packing the papads,
distributing wages, and handling the accounts. Each activity is given equal impotence and sister
perform these activities with mutual cooperation and consent, All these activities are thereto
helping it by guiding and training new members.
Leaving the organisation is voluntary for sister-members. No member sister can be asked to
leave unless or until she goes against the organization’s principles. Because of Lijjat main
motive of generating self-employment for women, no machinery is used at the production level
and everything is done manually. However, computers are now being used in some of the
Mumbai branches for accounts and administration.
Any sister can apply for a loan from the organisation without specifying any reasons. As well
for acquiring some of financial independence, women have also realized the importance of social
independence. Because women own the organisation lower middle- class women find it very
comfortable to work in such environment.
Accountability :
A member can not ask an employee to quit the organisation without specifying the reason but no
employee can ask a member to quit. However a member can be asked to quite by another
member (Dr. Members) if found to be involved in false practices or misconduct. Account books
are easily accessible ensuring transparency in Lijjat’s working.
Lijjat follows its own financial accountability principle. For instance selling price of a 200 gm
papad pack there is only a 0.5 rupee margin between the production costs. There is piece rate
system and sisters are paid on the basis of number of papad they roll. There is no credit method
for running operations in an organisation . Every payment is done on a daily basis except for the
outside supply of raw material.
In the initial days of Lijjat the profits of the first six months were shared equally among all
sisters in the form of gold. This sharing practice is still in effect, but now the decision whether to
share the profit in gold or cash is made at the branch level.17 Profit and losses are shared quality
among the members of a given branch. The cost of national level advertising is borne by all
branches and divisions, depending on their individual production abilities. The polypropelene
division provides money for advertisement and recovers it from additional charges on the bags
those it supplies to branches and divisions across India.
Lijjat became a formally complete organisation after the seventh year of its existence and after
that was recognized as a public trust. Initially, Lijjats activities were limited to the former
Bombay, but in 1966 it started to establish centers in neighboring urban area, followed by
branches in other states such as Gujarat, Andhra Pradesh, Punjab, and Madhya-Pradesh.
After continued success and phenomenal growth during the last four decades, Lijjat has been
able to mark its presence felt worldwide. A number of people including officials from countries
such as Israel, the United Kingdom, Shri Lanka, Sudan, Iran and Uganda have visited India to
see Lijjat methods of operation. They occasionally promote similar organisation s in their own
countries.
When lijjat started its venture, the seven women were determined not to accept donations or help
from anybody to run the organisation even if they suffered losses. This practice has been strictly
followed during the past 53 years and now lijjat has become financially sound after establishing
itself in the market through consistent quality of its production.
Lijjat has emerged as an organisation that not only denies any donations from parties but also
provides helps to the needy. For instance after the earthquake in Gujarat in January 2001 all the
branches of lijjat gave a total donation of more than 4.8 million, including Rs. 1 Million from the
central office. There are number of other such instances when they have contributed to
enhancing the self esteem of the member sisters.
1.19 ISSUES AND LESSONS :
The central office of Lijjat in Mumbai which previously co-ordinated the activities of all the
branches but with the increasing number of outlaying branches, authority was decentralized in
terms of routine work and sharing of profit at the branch level. However, branches and
sanchalikas still need the managing committee’s approval prior to undertaking any new project
or activity and they all must follow the same set of instructions and have similar accounting
systems.
In spite of the equal distribution of income among the sister-member, with the opening of more
outlaying branches. It was found that a few branches, dominated the administrative process as a
duty towards the organisation. The member, if found practicing mismanagement, are relieved
from membership.
Because the papads are prepared in different parts of India, the quality of the water usually varies
and so can the quality of the final product. To prevent any inconsistencies, Lijjat has its own
laboratory in Mumbai, where the final products are tested and coded. In the monthly meeting the
quality issue and modifications are also discussed.
Recently there was a problem of fake Lijjat papad being introduced in the market. In June 2001,
three person were arrested in this connection in Bihar, but the threat exists in the global market
also. Lijjat website tries to explain the identification features of original Lijjat papad, but with
technological advancements, it is difficult to guarantee the original product.
Besides papad Lijjat had initiated some unsuccessful ventures such as cottage matches and
agarbbati (incense sticks). By the end of 1978, Lijjat had flour Mills, Spices printing and
polypropylene division of its own and in 1979 it began manufacturing bakery products as well.
In 1966, Lijjat was recognized under the Khadi and Village Industries Commission Act, and
hence obtained exemption from income and sales taxes and could get loans at lower interest
rates. Currently, the state government of Punjab and Maharashtra have withdrawn the sales tax
exemption on Lijjat Sasa detergent because Lijjat has already grown into sizable organisation.
This can potentially obstruct Lijjat’s growth in these states. The President of Lijjat urged the
State governments to reconsider their stand during her speech at the Economic Times awards.
1.20 CHALLENGES AND POTENTIAL :
The story of seven illiterate and poor women who borrowed Rs.80 to start a papad business and
took it’s turnover from Rs.6196 in the first year to Rs. 300 crores in the next four decades,
involving over 40,000 women on its revolutionary match, is admirable at any rate. But to say so
if would be undermining the contribution of a well-thought Gandhian business strategy, equally
well executed by his followers, late Chhaganlal Karmshi Parekh and Puroshottam Damodar
Dattani, who worked relentlessly from behind the scene. Their vision was clear- an exclusive
women’s organisation run and managed by women, a quality product that these women had the
expertise to make and finally, a work environment which is not competition- driven and
mechanized but based on pure labour and love for the organisation and its people.
Today, Lijjat is guided by separate division of advertising, marketing, sales promotion and
export. There is greater co-ordination between branch offices (different production and
marketing units) and centralized marketing advertising and export departments. Transfer of
finished products to centralize marketing offices from different branches was worth Rs. 113.52
crore and advertisement expediture stood at Rs. 2.55 corers for 2000-2001.
But more than its much hyped sales figure, Lijjat’s experiment in the realm of corporate
governance stands out as one of a kind. All the centers are autonomous and profits remain with
the respective branches and normally used to augment the business after a due share is
distributed as extra vanai charges to sister-members (share of profit). Employees numbering
about 5000 including the chairperson herself, are in no way superior to sister-members and are
therefore expected to behave accordingly. Besides, the phenomenal growth and expansion of
Lijjat into a multi-product company it has opened up new employment opportunity for the
sistermembers. Eligible candidates are chosen and trained to work in its modern polypropylene
Sasa detergent and cake and printing divisions.
Lijjat’s Ranchi branch was established in November 1997 bifurcating from the only branch in
Bihar at Muzaffarpur. It pays Rs. 11,000 per month as rent for the building which houses its
office and workshop. A ‘trekker’ (thirteen-sister passenger vehicle) has also been purchased
from the conveyance of the sister member from home to the lijjat office and back. This branch
has 165 sister members and sold papad worth Rs. 0.65 million in November 2002. Vanai charge
is Rs. 14per kilogram of papad and each sister was paid Rs.250 as extra vanai charges on
Dipawali this year. The Muzaffarpur branch, according to Lijjat source paid Rs. 2500 as extra
vanai charges to its sister-members. Similarly the Mumbai and Thane branch distributed gold
coins of five grams to each of the 4056 sister-members a couple of months ago. The branch
averages around four rupees as gross profit and one rupee as net profit from per kilogram of
papad.
As an experiment, Lijjat has insulated its sister-member from joblessness. These women who
work from their homes, receive help from other family members which not only adds up to the
income but also makes the work more enjoyable. At the workplace, they are self-respected and
hard-working and sisterly to one another.
More importantly, besides the strength of womanhood, Lijjat is also an experiment in the
restoration of the essence of womanhood. The Lijjat women offer an alternative to the highly
competitive and stressful work environment defined and dominated by men in which a women
compets with a man more as a man than a women. Says an elderly Gandhian TK Sumaiya, of
Bombay Sarvodaya Mandal.
A s business enterprise, the declining sales figure for three years- Rs.298 cores (1999-2000), Rs.
288 cores (2000-2001) and Rs. 281 corer (2001-2002) is a matter of concern for Lijjat
Management. Some of it’s home turf in Maharastra and Gujrat has been captured by a
cometative local market. But Lijjat has also expanded to the North-Delhi, Punjab, Himachal
Pradesh and with the latest branch in Jammu, to the Kashmir market as well.The declining trend
in sales was arrested in 2003 and onwards and in 2012 sales reached to Rs.1072 crores.
Each branch is responsible for the marketing of its production in the areas allotted to it on all-
India level. This coupled with a healthy upward trend in the export of Lijjat as the strongest
brand in the papad industry. The other big brands in the papad market are Bikaner, MDH and
Shaktibhog, but none seem to be able to make any dent in Lijjat’s share in the industry as their
core business is not papad.
Lijjat markets its products through a wide network of dealers and distributors all across the
country, and has never chosen to sell or push its products directly through the vast network of its
offices and sister-members even during the initial years.
Rather over the years, Lijjat has developed cordial and mutually beneficial relationships with its
dealers. Sister claim they believe in doing the business wisely and on sound business ethics.
Dealers are given a set commission of seven percent between Rs.2.25 and Rs. 26 on the
investment of Rs. 14 for 200 grams and Rs. 150 for 2.5 kilogram packs respectively.
There are 24 dealers for Ranchi branch in cities like Ranchi, Jamshedpur, Dhanbad, Bokaro,
Patna, Gaya. During the month of November 2002, around 40,000 packs of 250 gram pack of
were sold and the total income crossed Rs.0.65 million.
According to the accountant at Lijjat Ranchi branch, who wishes to remain unnamed (as that
would shift the attention from sister-member to employees and thus violate Lijjat’s principle and
traditions) from 2003 Lijjat is aiming at a sales target a million rupees every month.
Lijjat has already become a household name as a symbol of women’s strength and resurgence,
and its receipe combining udad, Moong, Pepper and Hing has conquered the papad- eaters plate.
Care and education, Social Services, began in lijjat on the principle of trusteeship. It naturally
followed that the sister-members made a policy to return a part of what they had gained, back to
the community to promote their families welfare by increasing the availability of health care, by
providing scholarships for their children who showed up in their studies and also co-operating to
build houses. It was a multifaceted policy that contributed much to raise their own image and
that of the organisation in the eyes of the society.
In the Valod Center, Gujrat, they set up an educational and hobby center to provide the rural
women who lived there to acquire new skills. Orientation courses in typing, cooking, sewing,
knitting and toy making as well as other course like child welfare and hygiene were taught.
The first ever pucca (tarred) road in Valod was build and inaugurated in 1979 with the help of
Lijjat, Valod branch. 30 sister-members of the Golan sub-center of the Valod branch participated
in a camp organisation by the Rural Protection force in Golan. In the centering institute in
Mumbai three sister-members gave demonstrations to making papad along with the technology
involved.
When Mother Teresa met a few of them during her visit to Mumbai, she exhorted them to take
part in some activities of Asha Dhan, an organisation to carefor destitute women, set up by her in
Mumbai which they eventually did.
One of the most creditable works undertaken by the Lijjat was there habitation in Chincholi
( Jogan). The earthquake affected village in the Latur district of Maharashtra. The organisation
provided the finance and supervised the work of 58 houses for people of this village. Again in
2001, after the earthquake in Kutch Gujrat, Lijjat build 40 houses for the rehabilitation of people
of Bhujpur (Bhachu) in Kutch. It spent Rs.49,00,000 for the construction and obtained as these
contributions from seven branches.
On special occasions, the sister-members undertook specific activities of social services e.g.
planting of trees, distributing nutrition’s food for poor children, donating money for spread of
primary education, undertaken blood donation drive and donating computer kiosk with
information on the city of Mumbai to postal authority (which was to be kept at the General Post
Office Mumbai). In 1988, the sistermembers of the Rajkot branch Gujrat donated 27,000 life-
saving mixture of salt-sugar packets to the Municipal Corporation for distribution among the
cholera victims in backward areas of the city. 30 In the previous year, they had contributed
voluntarily from their vanai (rolling charges) a sum of Rs. 3,324 to purchase green fodder as a
measure towards drought relief work. They co-operated in the community effort in Rajkot by
organisation fort supply of one tanker of water to the surrounding villages till the arrival of the
next monsoon. They participated in the cleanliness drive of the Municipality of Rajkot by taking
over a ward to clean it. 32 In 1966 they also donated Rs. 10,000 as onetime payment from
Ramania Branch and distributed 5,000 anti malaria drugs. The Lijjat organisation donated packs
of papad to the mountaineers who were attempting to scale of Kanchanjunga. In the Himalaya as
thus, there grew a strong tradition of giving donations in cash or kind by sister-members to social
causes.
SOCIAL CAUSES :
1)Health Care:
The co-operative effort of the sister-member of earning a livelihood also translated itself into
helping each other in times of need and in promoting measures from health care.
Initially in each of the branches, they started an investment plan by which they set aside a small
sum from their earnings, which were given back to them as a lumpsum at later date.33 This was
scrapped with the alternative promotion of cooperative bank where individual saving were
promoted and loans would be made available.
The bank was started in some branches and other were also asked to promote it. However this
too was not every successful and had to be closed.
The failure of such attempts at creating savings for the women clearly indicated the practical
difficulties of promotions as well as lack of any affordable amount of money that could be spared
by the sister-members from their earnings.
Different branches promoted housing schemes for its member on a cooperative basis. In 1977
the first medical checkup of the sister-member and their families was initiated in valod, in co-
operation and with the Navsari Rotary institute an eye camp was arranged. A similar camp was
arranged in Bhopal in 1980.
In course of time, better facilities were set up such as a medical care dispensary started at the
detergent division at Dahisar. When a sister-member or her family needed costly medical help
like heart surgery or treatment for cancer, the other sister contributed a sum of money towards
the expenses.
The Ramania branch at Bhuj organized a Tuberculosis(TB) detection camp for the sister-member
and 145 likely TB patients were examined and necessary treatment was given to them free of
charge. Talks by doctors on various aspects of health care were organized for the sistermember
in the urban and rural branches of the organization.
2) Education:
Scholarships were set in the name of Chhaganbapa, who had been a source of moral support to
them from the beginning. From the year 1980 several issues of Lijjat Patrika listed the names of
girls, daughters of sister-member who were given Chhaganbapa Smruti Scholarships.These were
for XI, XII standards and for university courses. Initially these scholarships were granted only in
the Mumbai branches, but slowly the idea spread to the other branches elsewhere too.
Daughter of Lijjat sister who secured above 60% in the SSC examination were to be given a
token prize of Rs.100 and successful candidates were asked to send their mark sheets along with
their photo, their names and their mother’s name. These were published in the Lijjat Patrika.
The sister-member gave to a student from a municipal school who topped the SSC lists in the
city of Mumbai, a token gift of Rs. 20,000. One major development made by the Lijjat was
policy decision to sponsor computer education for the daughters and sons of sister-members
from Mumbai, thane areas and was pursued with great vigour by the organisation through
following years. This is because, though many of sister-members were not educated, the
furthering of the education of the children especially the daughters, was felt to be vital for the
future Computer classes were organized at Dahisar for daughters of the sistermembers from May
1997.
The important milestone was the literacy campaign started by Lijjat for its own sister-members,
Literacy (Sakshrata) classes were stared in the various branches in Mumbai and Bubaneshwar
(Orisssa). The managing committee decides to start similar classes in all branches in India. The
canvassing for the literacy programme was in consonance with the ideology of Lijjat since the
commencement of the organisation.
Distribution of gold as chain or ring to member sisters had symbolized share in profits and hence
a sign of prosperity. The circular call to literacy read. ’Each one tech one!’ Literacy is a chain;
Lijjat presents it to all its bens (sisters). Thus equal literacy to progress and prosperity. The
classes started on June 1999 in Girgum, where Lijjat had first begun and then sequently in the
various branches in Mumbai and in orisa on June 28, 1999. Soon classes were held in different
branches of the states.
When the sisters-members come to their respective branches to collect their share of the
kneaded flour at 5.30 a.m for those who were illiterate among them, and classes would be held
about 30 minutes each day by volunteers or by the daughters of the member-sister, who were
educated.
Today a woman cannot be independent unless she is literate. An illiterate woman depends on
others even for reading a letter. She cannot write own letters, do her own accounts, go to the
bank, pay the etc on her own. A literate woman can teach her children, help her husband in his
work, can live respectfully, was depending on no one’s project.
3)Settlement of disputes
dissatisfaction are all ingrained in human being, In 43 years of its history. Lijjat has faced
number of union matters. In 1979 the general secretary of trade union with the help of few sister
who had enrolled as a member union threatened the president of lijjat Shashikala More who
appealed in Marathi to all the sister that in case of any grievances they should approach her to
solve the issues before the committee appointed for the purpose.
They died not allow any outsiders to interface in the matter of grievance and try to sort out and
solve their problem by mutual discussions. L.J Joshi, labour advocate and a well known
industrial relations expert was called for discussion on a skilled unskilled or manual work and
the remuneration being paid for the work done by them. Under the industrial Disputes Act, when
a workman had to be employed in the industry, There should be a relationship between the
employer and him.
Apart from providing the raw material as per the requirement of each member and to exercise a
periodic quality control when the papads were brought for delivery at the Lijjat premises as per
specification provides the organisation had no other control over them. The members themselves
decided on the sharing of profits in terms of valuable article given as gift which they may receive
in six months, one year or two as the case may be.
Thus, it is concluded that there is no master/ servant relationship existing between the members
and the SMGUP and their relationship does not constitute a contract of services. It was therefore
open for the members collectivity to decide how to improve their remuneration and get other
benefits. As partners of the organisation they were competent to take a decision for their own and
it was not open outside agency to interface with the internal working of the organisation.
Repeated appeals were made to the sister-members in meeting and through the Lijjat Patrika not
to allow such persons who had been formerly connected with the organisation, specially in the
outside branches and who had damaged its reputation.
The Jabalpur branch of Lijjat in Madhya Pradesh was taken over by one Shantillal Shah as his
own unit. He ran it with the help of the Sanchalika, who was the wife of his employee. The
parent organisation went through tremendous pressures and court stay to receive the situation.
The main approach of the organisation in similar cases was to disassociate itself from the
concerned branch and file cases from protecting its brand name.
On the constructive side, it promoted an active participation by the sisters so that there could be
better understanding and a sense of deeper involvement in the progress of the organisation.
As the number of women increased in the branches, specially the outstation ones. There was the
tendency for one or two individuals to take the initiative in all matters not involving the other
sisters-members and dominate the show. Hence repeated requests were made to the sister-
member to take keen interest in the activities of the branch because it was their right as well as
their duty.
1.23 KEY FACTORS FOR SUCCESS OF SMGULP :
1) The merging of ownership with membership has encouraged uniform and sustained
organisation growth
2) The consistent quality of products has been a primary factor in establishing and maintaining
Lijjats brand image in the market for the last four decades.
4) Lijjat has emerged as an innovative organisation in which women from any religion, caste or
class can become members. The pledge and all –religion prayer also encourage co-operative
work among women, irrespective of caste or religion.
5) Transparency in operation and a non hierarchical structure has helped in establishing the
organisation the accountability among sister-members.
Lijjat encourages it’s members to give to other whatever they can, instead of expecting help from
others. Lijjat does not accept donations, but gives donations, which enhances members a self-
esteem and pride in their own organisation . Calling the members “sisters” creates an informal
work environment. Frequent meetings open interactions and consensual distribution of task
reduce the possibility of disputes resulting from communication gaps and helps work to go
smoothly.
Lijjat provides economic opportunities through a domestic activity. Once involved in this
activity, the women acquire confidence and status as they make money in a respectable manner.
The more enterprising responsible and experienced sister-member climb the administrative
ladder, Lijjat exemplifies a remarkable way of making leaders out of ordinary women.
1.24 COMPETITORS :
Papads use to be made in good olden days in the household. Sometimes it was taken to be a
community work. The doyen of the SMGULP, late Changanbapa Parekh has taken this example
and embedded the same in the minds of the 7 sister members collective manufacturing of papads
is main motto of the making quality products. And exercise in this the profitability is never
thought off and whatever profit was deriving from the manufacturing of papads, the same are
distributed among sister-members.
The other competitors in the business such as Bikaner Papad, Ganesh Papad and Suhana Papad
and many others and sundries have also been in the business of making papad and marketing the
same.
It has been observed that the gaps left by SMGULP while marketing lijjat papad are being filled
in by these papad producers. When questioned to the marketing, Dept. of SMGULP about efforts
for the marketing of lijjat papad being taken by them, it was revealed that there are virtually no
efforts of marketing since SMGULP works only on the principle of demand and supply for the
simple reason that papad is perishable product.
In fact, while interviewing Sanchalika of the organisation of Shri Mahila Griha Udyog Lijjat
Papad (SMGULP),the researcher was verbally informed that it is easy to out these competitors
by increasing the production of lijjat papads but only because of its acceptance of the principle of
SARVODAYA and the policy of live and let live, they are restricting the output of the supply
thus leaving space for these small competitors.
The competitor’s activities Sona Papad, Kamdhenu Papad, Prince Papad, Mona Papad, Pravin
Papad, Gujrathi Papad, Mamta Papad, Aarti Papad which are being carried out by the section of
the women in the vicinities of those of Lijjat Papad rolling women area, were particularly
interviewed since these women are competitors papad rolling women performing the activity of
papad rolling as labourers and not as owner of the organisation as the case is in SMGULP.
Over 50 years of the activity of the organisation, it has gone through various challenges such as :
Despite these odds, the organisation sprung up and has faced the challenges determinately.
However, it appears that the future of the organisation particularly hand rolled papads, will be
facing shortage of women folk considering the very fact that the literacy ratio in the families of
these women is increasing tremendously as next generation of these women are trying to find
different avenues of job opportunities than working from home. Towards this problem, the
organisation has already taken steps by opening centers and sub-centers in the remote areas
where the literacy has not been progressed and women in such area are trying to find home-based
in come to support to meager income coming from agro-based activities.
One more challenge that could be envisaged by the organisation is shifting of tests of the
younger generation from papads to some other products which are being sold in the market and
are lured by the manufactures by various gimmicks of advertisements to the younger generation
buying the products where it was with a meagre sale of 4 packets in the first day after starting the
venture of making papads, as on the date, the total sales of the organization’s product is around
1070 crores. While there are other papads available in the market, they fill the gap only when the
Lijjat papad is short supplied in the market. If lijjat can manage to fulfill the required
expectations of the market, then in that case other papad manufactures may choose to close their
operations.
1) The organisation has consistently improved the quality of papads and in order to broaden
these activities it has also started chapatti, Masala, Aata and detergent units. While for
making papad the women are required the work from home for all activities of the
organisation which involved women they have to work within the premises of the
organisation. The theme being same except same deviations in the work-places.
2) Lastly while on one hand the org. has made quality products which are much in demand
on the other hand it has taken responsibilities of society by adopting philanthropist’s
approach such as constructing full villages in the earthquake affected areas such as
Chinchili jogan in Uamarga taluka in Latur district in Maharashtra and Bhujpur village in
Kutch district in Gujrat. It has also liberally donated monies for Tsunami affected people.
In a Nutshell, it is observed that the organisation strives for achieving greater heights of
production of its quality products. It would like to slowly move towards areas where women are
uneducated, have desire to work and can show dedication for manufacturing of quality products.
The organisation has therefore widened its Horizon by opening branches in places like Jammu
and Kashmir and Gujrat. It will strive further by opening branches in unrepresented areas in
NorthEastern states from Asam to Meghalaya.
CHAPTER 2 : RESEARCH METHODOLOGY
A research project may also be an expansion on past work in the field. Research projects can be
used to develop further knowledge on a topic, or in the example of a school research project,
they can be used to further a student's research prowess to prepare them for future jobs or reports.
To test the validity of instruments, procedures, or experiments, research may replicate elements
of prior projects or the project as a whole. The primary purposes of basic research (as opposed
to applied research) are documentation, discovery, interpretation, or the research and
development (R&D) of methods and systems for the advancement of human knowledge.
Approaches to research depend on epistemologies, which vary considerably both within and
between humanities and sciences.
Related to employees:
1) To find out problems faced by shri mahila griha udyog lijjat papad.
2) To study what solutions are adopted in small scale industries to resolve problems.
3) To study the brand marketing at international level.
4) To study which product of lijjat is demanded more un market
5) To study how lijjat deals with its competitors.
Related to consumer:
The hypothesis states that all the consumers (100%) consume lijjat papads in the market. But the
study states that the hypothesis was wrong. 83.33% of consumers consume lijjat papads whereas
16.67% of consumers consume homemade papads.therefore the hypothsis is a negative
hypothesis.
The study guides you about the detailed study of the small-scale industries i.e., SHRI MAHILA
GRIHA UDYOG LIJJAT PAPAD. This study will give you a detailed information of problems
faced by small scale industries. The study will help you to find out the solutions that are faced by
the small-scale industries.The features, limitations,and many other aspects are explained in
detailed in the study.
While studying my problem I faced many problems, some of them are explained below :
1. While conducting my survey I came to know that, many of the workers were illiterate so
they were unable to fill the google form i.e. questionnaire.
2. Many of the workers were not having mobile phones ,so they were unable to give
responses to my questions.
3. The management of lijjat firm refused to provide their financial statements .
The study will give a detailed information about shri mahila griha udyog ljjat papad, which is a
small scale industry. The problems , advantages , limitations , characteristics , are all explained
in detail. If in case in future any researcher wants any detailed information about lijjat , he/she
should take my study as a refernce which would be helpful for him/her.
2.6 SAMPLE DESIGN :
PRIMARY DATA:
QUESTIONNAIRE:
I researched using a set of simple questions prepared to collect the accurate information from
respondents . The questions intotal prepared were 30 in numbers, which includes 12 questions
for employees and 25 questions for customers.
BRANCH VISIT:
I visited Shri Mahila Griha Udyog Lijjat Papad, Bhandup(east) branch for survey from lijjat
employees.
SECONDARY DATA:
Secondary data refers to data that is collected by someone other than the user. Common sources
of secondary data for social science include censuses, information collected by government
departments, organizational records and data that was originally collected for other research
purposesSecondary data analysis can save time that would otherwise be spent collecting data
and, particularly in the case of quantitative data, can provide larger and higher-quality databases
that would be unfeasible for any individual researcher to collect on their own. In addition,
analysts of social and economic change consider secondary data essential, since it is impossible
to conduct a new survey that can adequately capture past change and/or developments. However,
secondary data analysis can be less useful in marketing research, as data may be outdated or
inaccurate.
I have collected the data from 100 respondents via google form questionnaire method which are
further classified into 2 parts viz., the 75% of the responses have been collected from the workers
or employees of lijjat whereas 25% of the responses are collected from the customers of the
lijjat.
The data has been collected via google form questionnaire method , which means a set of
questionnaires was prepared and then sent to those 100 respondents via social networking sites
such as WhatsApp, Instagram, etc. The data has been collected from Mumbai and Navi
Mumbai .
A lot of studies have been made on small Scale Industries, in general. Both the Central
and State Governments have taken a number of researches on small scale industries through
people from the academic and non-academic side since they provide employment potentialities
to millions of workers besides bringing enhanced national income in terms of domestic income
and foreign exchange.
There are numerous works dealing with various problems of SSI units. This field of
study is so voluminous and flexible views of various kinds are in existence regarding financial,
production, marketing and personnel management of SSI Units. Every aspect of small scale
units and its problems is studied and some concrete results are arrived at. Still the scope to
study the management and the problems of small scale industrial units is open and wide, as
ever.
The growth of the Lijjat organisation is to be seen on the larger canvas of women and their
development within the framework of progress in the developing countries. In India, apart from
emphasis on education and health, The first 3 to 5 years plan did not prescribe any administrative
structure for women’s developments leaving it to the voluntary organisation. For the first time, a
separate chapter on women’s development was included in the Sixth Five tear plan document
(1980-85).
While the need to build confidence and awareness of their rights was emphasised by the seventh
plan, the eight five year plan (1992-97) planned for the provision of employment to women
enabling them to function as equal partners and participant in development.
Thus, from being recipient of benefits through trickling down effect of the welfare measures, the
emphasis shifted gradually enabling women to become active agents of their empowerment.
Herein lies the importance of the origin and growth of Shri Mahila Griha Udyog Lijjat Papad. In
1959, it anticipated the later five year plans, through its direct action of enabling an increasingly
larger numbers of women achieve a measure of economic self-reliance. It was a grass root
movement achieve measure of economic self-reliance. It was a grass root movement that was
capable of self-substaining and self-propelling growth.
These women belonged to the disadvantaged section of the society so that the driving force
came not from above, but from below. The seven women, whose work initiated the lijjat
organisation had intended merely to supplement their family earnings by using their natural
talent in the art of papad making.
They had set the ball rolling both literally and metamorphorically. The work provide for dignity
of labour and self-confidence along with their earning capability. Slowly their collective strength
enabled them to tide over difficult times through mutual monetary and moral support resulting in
the increasing organisation strength of the Lijjat Organisation.
The character of work belonged to the traditional model of women work. This was a double-
edged sword since it reinforced the traditional role of women working in kitchen as the center of
operations. At the same time it was best suited to the largely illiterate women who formed the
workforce till almost the mid 1990’s as it involved a known expertise and they easily learnt the
other aspects of work with hand on experience in the job.
This provided chances of climbing up the ladder in the organisation . [Kamal Dhandore the
former vice-president had studied only till the fourth class Jyoti J. Naik, the fast president,
Pratibha Sawant Vice president, Swati Paradkar present President have studied only till the 10th
standard in the night school, while rolling out papads during the day. As Jaswantiben had
remarked, She could easily do the calculations of measures of the ingredients during the routing
operations through she had studied only till the second class.
53.33% of the employees says that they have target for papad making work.
10% of the employees says that they don’t have any target for papad making work.
36.67% of the employees says that sometimes have targets for papad making work.
Do You Get Any Incentives, Rewards, Bonus For Completing The Target ?
Table no. 4.1.8
96.67% of the employees have responded that lijjat export their products internationally.
3.33% of the employees have responded that lijjat don’t export their products
internationally.
At What Rate Does Lijjat Export Their Products?
Table no. 4.1.11
3.33% of the employees says that lijjat products are exported at same rate as in India.
96.67% of the employees says that lijjat products are exported at higher than in India.
94.3% of the consumers says that the lijjat products are pocket friendly.
5.7% of the consumers says that the lijjat products aren’t pocket friendly.
95.7% of the consumers found lijjat products available at their nearby grocery stores.
4.3% of the consumers don’t found lijjat products available at their nearby grocery stores.
98.6% of the consumers says that the taste of lijjat products is worth for its purchase price.
1.4% of the consumers says that the taste of lijjat products isn’t worth for its purchase price.
30% of the consumers buys one or less than one packet of lijjat papad in a month.
44.3% of the consumers buys 2-3 packets of lijjat papads in a month.
15.7% of the consumers buys 3-4 packets of lijjat papads in a month.
10% of the consumers buys more than 4 packets of lijjat papads in a month.
7.14% of the consumers are regular consumers of lijjat from less than 1 year.
14.29% of the consumers are regular consumers of lijjat from 2-3 years.
20% of the consumers are regular consumers of lijjat from3-4 years.
58.6% of the consumers are regular consumers of lijjat from more than 5 years.
Which Of The Lijjat Product Do You Think That Are Not Liked Much?
Would You Prefer Any Other Brand Of Papad Other Than Lijjat?
Table no. 4.2.10
15.7% of the consumers have responded that they would like to prefer any other brand of
papad other than lijjat.
84.3% of the consumers have responded that they wouldn’t like to prefer any other brand
of papad other than lijjat.
If Yes, Mention...?
According to the study, many of the respondents have not mentioned any answer
but some of them have mentioned answers such as :
Ganesh papad
Bikaner papad
Kerala papad
3% 3%
5%
9%
lijjat ganesh
Suh
ana
bikaner suhana
20% 60%
homemade other
papad
Homemade papad.
41.4% of the consumers are aware of other brand of papad other than lijjat.
38.6% of the consumers aren’t aware of other brand of papad other than lijjat.
17.1% of the consumers are sometimes aware of other brand of papad other than lijjat.
2.9% of the of the consumers are never aware of other brand of papad other than lijjat.
How reasonable does the rates of lijjat products are?
12.5% of the consumers don’t consume lijjat products because of lack of awareness.
16.7% of the consumers don’t consume lijjat products because of lack of availability.
16.7% of the consumers don’t consume lijjat products because they find them expensive.
54.2% of the consumers don’t consume lijjat products because of other reasons which are
not mentioned.
46 respondents haven’t responded to this question.
88.6% of the consumers thinks that brand image is an important aspect before buying the
product.
11.4% of the consumers thinks that brand image isn’t an important aspect before buying
the product.
35.71% of the consumers thinks that the employment practices of SMGULP are
excellent.
57.14% of the consumers thinks that the employment practices of SMGULP are good.
7.14% of the consumers thinks that the employment practices of SMGULP are average.
How Would You Rate Your Overall Opinion For Lijjat Products?
Table no. 4.2.20
5.1 CONCLUSION
The most interesting lesson managers can pick up from Shri Mahila griha Udyog lijjat papad,
sticking to its core values the past 50 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 make just enough money. No one
would 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 Gujrat, locally manufactured and marketed eatables
are catching on. There is hardly any NGO or voluntary organization nowadays which does
not try to 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 pepper powder,
detergent powder, and cake, Vadi, bakery products, wheat flour are on Lijjat’s menu but
papad with a sales figure of Rs. 800 crores remains at the top. Among similar ventures which
came a cropper are incense sticks, leather bags, tiffin boxes, and matchsticks. But most
promising among them is the chapatti division with 6 branches in Mumbai. Here, the women
come in to work at around 7 in morning ang make chapatti as they are prepared in homes.
Packed Lijjat chapatti, 4 for rs. 5, are available at retail shops in Mumbai. These centers also
procure from hotels, office canteens, etc., and the catering in Mumbai includes some big
names from the hotel and catering 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.’ Say Ashok Bhagat, a leading social worker engaged in tribal
welfare activities in the gumla district of Jharkhand.
Next time there is Lijjat Papad on the table, you sure can see a Chandrashekhar or Suja’s
dimpled fingers deftly rolled out the crisp Papad. It is made with love and care, just like from
their mama’s kitchen.
5.2 SUGGESTION
Forecast market trends and try to adjust supply accordingly so as increase market
share and take advantage of established brand image.
Try to bring more innovations like more varieties, sizes and their different
combinations.
Some consumers perceive that price of Lijjat papad is somewhat high so if possible,
company should think on its price positioning in market by revising prices.
BIBLIOGRAPHY
www.google.com
www.lijjat.com
Wikipedia – SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD
Visited lijjat branch – Bhandup branch
Reference from project – shodhganga.com
APPENDIX
Papad
Masala
Wheat flour
other
100 gm
250 gm
500gm
Summer
Winter
Rainy
6. What Type Of Returns Do You Get For Your Work?
Per day wages
Monthly salary
Depends on order
Other
7. Do You Have Any Target For Papad Making Work ?
Yes
No
Sometimes
Never
8. Do You Get Any Incentives, Rewards, Bonus For Completing The Target ?
Yes
No
Sometimes
Never
9. What Type Of Techniques Do Lijjat Use For Making Papads ?
Traditional
Machines
other
10. Does Lijjat Export The Products Internationally ?
Yes
No
11. At What Rate Does Lijjat Export Their Products?
Same rate as in India
Higher rates than in India
Lower rates than in India
12. What Type Of Products Are Demanded Most Outside The India ?
Papads
Masala
Wheat flour
Other
13. Does Lijjat Faces Any Problem While Producing The Products ?
Yes
No
Sometimes
Never
B. Questionnaire of customer’s satisfaction :-
1. Are You A Consumer Of Shri Mahila Griha Udyog Lijjat Papad ?
Yes
No
2. Which Product Of Lijjat Do You Consume The Most?
Papad
Khakhra
Masala
Other
3. Do You That The Prices Of Lijjat Products Are Pocket Friendly ?
Yes
No
4. Are Lijjat Products Available At Your Nearby Grocery Stores?
Yes
no
5. Is the taste of lijjat products worth for your purchase price?
Yes
No
6. How Many Packages Of Lijjat Papad Do You Buy In A Month?
1
2-3
3-4
More than 4
7. Are you a regular customer of lijjat papad?
Yes
No
Sometimes
Never
8. If Yes, Since How Many Years ?
Less than a year
1-2
2-5
More than 5 years
9. which Of The Lijjat Product Do You Think That Are Not Liked Much?
Masala
Khakhra
Wheat flour
Papad
10. Would You Prefer Any Other Brand Of Papad Other Than Lijjat?
Yes
No
11. If Yes, Mention...?
Short answer
12. Are you aware of any product other than lijjat papads?
Yes
No
Sometimes
Never
13. How reasonable does the rates of lijjat products are?
Very reasonable
Reasonable
Expensive
Very expensive
14. Why don’t use consume lijjat products?
Lack of awareness
Lack of availability
Find it expensive
Other
15. Is Brand Image An Important Aspect Prior To Purchase A Product?
Yes
No
16. Which Brand Would You Prefer To Buy?
Ganesh
Lijjat
Homemade
Other
17. What Do You Think Of Employment Practices Of Shri Mahila Griha Udyog Lijjat Papad?
Short answer
18. Have you ever seen an advertisement of lijjat papads on television ?
Yes
No
19. Which Mode Of Advertisement Had Influenced You To Buy The Lijjat Papad?
Television
Banners
Newspapers
Others
20. What Is Most Unique About Lijjat Papad?
Taste
Quality
Price
Freshness
21. How Well Do Lijjat Papads Meet Your Needs ?
Excellent
Good
Average
Below average
Poor
22. Which Of The Following Word Would You Use To Describe Lijjat Products?
Excellent
Good
Average
Below average
Poor
23. How Would You Rate Your Overall Opinion For Lijjat Products?
Very high
High
Low
Very low