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A PROJECT REPORT

ON
SHRI MAHILA GRIHA UDHYOG LIJJAT PAPAD
(RECOGIZED BY KHADI & VILLAGE INDUSTRIES COMMISSION)

PRESENTED AND SUBMITTED BY:


NAME ROLLNO:
SONALI AHIRE 2
NAMRATA PATEL 58
NILEKHA SAWANT 70
KIRTI SHIRKE 80
SUNMIT JAIN 98
JOVIN GEORGE 20
SWITEJ LOPES 99

Towards the partial fulfilment of the

PRINCIPLES OF MANAGEMENT
POST GRADUATION DIPLOMA IN MANAGMENT
(GICED, UNIVERSITY OF MUMBAI)
&
SUBMITTED TO
Ms. SUSHMITA MUKHERJI
(2009-2010)
GICED, MUMBAI UNIVERSITY

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ACKOWLEDGEMET:

We would like to take opportunity to acknowledge the innumerable guidance and support
extended to us by all the group members of project in execution and preparation of our
project on the topic of “WOMEN’S CO-OPERATIVE.”

With immense please we are presenting “Lijjat” project report as part of the
curriculum of PGDM. We wish to thank all people who gave us Unending support.
In this project, we have given brief description about the organization, which has been started
by the women’s organization.

We express our profound thanks to our head of department Mr. Kshirsagar and our project
incharge Miss. Sushmita Mukherji and all those who have indirectly guided and helped
us in preparation of this project.

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Table Of contents

 Lijjat Introduction
 Objectives
 Three Golden Rules
 History
 Founders
 Core values
 "Who owns Lijjat?"
 Organization Structure
 4 P’s
 Advertising
 Packaging
 Quality Check
 Divisions
 The Growth
 Profit Generation
 Financials
 Exports
 Business is the Motto
 Business Transparency
 Flexibility
 SWOT Analysis
 Awards to lijjat
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 Social Welfare
 Conclusion

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’

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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.
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.

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Objectives:

When industry starts some basic thoughts or some objectives are there. In cases of co-
operatives organization Objectives of that organization became very important to runs
Successful business. lijjat also have some Objectives to run their business there are as
follows :

 It is a voluntary organization of sisters.

 The organization is neither for the poor sisters nor for the rich ones-poor Sisters
should remove the thoughts of poverty from should their mind and the rich sisters
remove thoughts of their affluence.

 It never accepts charity or grant.

 It believes in running the business wisely and with practice good business ethics with
dealers and consumers.

 The organization strictly observes the practice of maintaining the the accounts

 Regularly, writing the books daily and preparing balance sheets every month.

 The organization is like a family and sisters run it as if they all belong to the same
family.

 The organization is like a revered place of worship.

 Of one can change these basic thoughts of the organization.

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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 1962, the name Lijjat (Gujarati for "tasty") was chosen by the group for its products. The
name was suggested by Dhirajben Ruparel, was chosen in a contest held for the purpose, with
prize money of Rs. 5. The organization was named Shri Mahila Griha Udyog Lijjat Papad. In
many Indian languages, Mahila means women, Griha means home, Udyog means industry.
By 1962-63, its annual sales of papads touched Rs. 1.82 lakh.
In July 1966, Lijjat registered itself as a society under the Societies Registration Act 1860[. In
the same month, on Chaganbapa's recommendation, U N Deodhar, the chairman of KVIC
personally inspected the Lijjat. KVIC or Khadi Development and Village Industries
Commission is a statutory body set up by the Government of India for development of rural
industries. In September 1966, KVIC formally recognized Lijjat as a unit belonging to the
"processing of cereals and pulses industry group" under the Khadi and Village Industries Act.
It was also recognized as a "village industry". In 1966, KVIC granted it a working capital of
Rs. 8 lakhs (0.8 million) and was allowed certain tax exemptions
The first branch outside Maharashtra was established at Valod, Gujarat in 1968. After tasting
tremendous success with their papads, Lijjat began producing other products like khakhra
(1974), masala (1976), vadi, wheat atta, and bakery products (1979). In 1970s, Lijjat set up
flour mills(1975), printing division (1977) and polypropylene packing division (1978). The
group also initiated some unsuccessful ventures such as cottage leather (1979), matches
(1979), and agarbattis (incense sticks
In 1985, the Lijjat branch at Jabalpur was taken over by one Shantilal Shah as his own unit,
which he ran with the help of a Sanchalika (branch head), who was wife of his employee.
Lijjat went through tremendous pressures and court stay orders to retrieve the situation
In 1987, Lijjat purchased new premises at Kamal Apartments in Bandra, a suburb of
Mumbai. The registered office shifted to the Bandra with effect from July 1988[7]. In 1988,
Lijjat entered the soap market with Sasa detergent and soap[16].. Sasa had annual sales of Rs

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500 million, accounting for 17 percent of Lijjat's total turnover in 1998. In March 1996, the
50th branch of Lijjat was inaugrated in Mumbai
In the 1980s and 1990s, Lijjat started attracted attention of foreign visitors and officials. The
Vice-President of Uganda, Dr. Speciosa Wandira-Kasibwe, visited Lijjat's central office in
January 1996, since she wanted to start a similar institution in Uganda. Lijjat started
exporting its products with the help of merchant importers in the United Kingdom, the United
States, the Middle East, Singapore, the Netherlands Thailand, and other countries. Its annual
exports accounted for more than US$ 3.2 million in 2009. As its popularity grow, Lijjat
started facing the problem of fake Lijjat papads being introduced in the market. In June 2001,
three persons were arrested in this connection, in Bihar]. Lijjat's website explains the
identification features of original Lijjat papads
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

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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.
Received The Economic Times “Businesswoman of the Year” Award in 2002.

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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

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Core values:
Shri Mahila Griha Udyog Lijjat Papad is synthesis of three different concepts, namely:

1. The concept of Business.

2. The concept of Family.

3. The concept of Devotion.

All these concepts are completely and uniformly followed in this institution. As a result of
this synthesis, a peculiar Lijjat way of thinking has developed therein.

The institution has adopted the concept of business from the very beginning. All the dealings
are carried out on sound and pragmatic commercial footing. It produces quality goods and
sells them at reasonable price.

It has never accepted nor it is ever going to accept any charity, donation, gift or grant from
any quarter.

Besides the concept of business the institution has adopted the concept of mutual family
affection, concern and trust which are the ‘idée fixe’ of the members. All the affairs of the
institution are tackled on the very same pattern as a family carries out its own daily household
chores.

But the most important concept adopted by the institution is the concept of devotion. For the
members as well as the employees and the well wishers, the institution is never merely a

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place to earn one’s livelihood. It is a temple, a church, a mosque, a gurudwara, a place of
worship to devote one’s energy not for his or her own benefits but for the benefit of all. In
this institution work is worship.

"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.

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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.

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

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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).
The running of the organization is entrusted to a managing committee of twenty-one
members, including the President, the Vice-President, two secretaries, and two treasures.
Sanchalikas are in-charge of various branches and divisions. The office bearers of the
managing committee and the sanchalikas are chosen from among the member-sisters on the
basis of consensus every three years. Each branch has a committee eleven member-sisters,
again chosen by consensus. The central office at Mumbai previously coordinated the
activities of various branches. But, as the organization grew, the authority was decentralized
in terms of work and sharing of profits at the branch level. However, the sanchalikas still
need the managing committee's approval before they undertake any new project or
activity.All the branches follow the same set of instructions and have similar accounting
system. To co-ordinate various branches in a region or state, there are branch coordination
committees and area meetings of various branches in a state. The annual general meeting is
attended by member-sisters representing branches and divisions all over India.
Currently, Lijjat has branches in seventeen Indian states -- Andhra Pradesh, Bihar, Delhi,
Gujarat, Haryana, Jharkhand, Jammu and Kashmir, Karnataka, Kerala, Madhya Pradesh,
Maharashtra, Orissa, Punjab, Rajasthan, Tamil Naidu, Uttar Pradesh, and West Bengal.
Account books are easily accessible to all the member-sisters, ensuring transparency. Lijjat
follows its own financial accountability principle. There is no credit method for running
operations in the organization. Every payment is done on a daily basis, except for the outside
supply of raw material. Profits and losses are shared equally among the members of a given
branch. 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 profits in gold or in cash is made at the branch level. The cost
of national-level advertising is borne by all branches and divisions, depending on their
individual production abilities. Because of Lijjat's main motive of generating self-

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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.

Four P’s:

Products:

Lijjat’s most famous products is papad. Papad is their many and along product in market. In
starting their use to make only two kinds of papad 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. Then lijjat started making differenced flavours of papad. After
establishing lijjat into papad business their started into entry into new product.
1988, Lijjat entered the soap market with Sasa detergent and soap.
THE LIST OF PRODUCTS AVAILABLE:
Papad (five flavors: lasan, moong, mirch, Punjabi and urad)
Khakhra
Appalam
Masala
Vadi
Gehu Atta(Wheat flour)

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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.

Pricing:

Shri mahila Griha Udyog Lijat papad adopts a Cost plus Pricing Strategy for all their
products. The Lijjat products are targeted at the middle and lower segments of society. These
segments are highly price sensitive and hence this method of pricing allows them to market
their products extensively.
While calculating the price the following expenses are taken into consideration:
Cost of Raw material
Rolling Charges
Packaging Costs
Selling Expenses

Consumer price list :

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Items Udad with Udad with Udad with Red Moong (50% Udad Special Moong Punjabi Masala
Pepper Garlic & Chillies Udad & 50% Special(50% Special
Chillies Moong) Udad & 50%
Moong)

Small Size 17.00 17.00 17.00 17.00 21.50 21.50 21.50


100 gms

mini size 30.00 30.00 30.00 30.00 33.00 33.00 33.00


200 gms

small size 34.00 34.00 34.00 34.00 39.00 39.00 39.00


200 gms

Big size 250 45.00 45.00 45.00 45.00 50.00 50.00 50.00
gms

Small / Big 70.00 70.00 70.00 70.00 79.00 79.00 79.00


size 500
gms

Small / Big 105.00 105.00 105.00 105.00 140.00 140.00 140.00


size 1 kg.

Small / Big 250.00 250.00 250.00 250.00 320.00 320.00 320.00


Size 2.5 kg.

Price – Export price list :

Export price are different of the prices within India. Export price are high as compare to
prices in India. So lijjat earn more profit through export as compare to India

Items 80 Pkts X 200 gms BigSize & SmallSize( 7in & 5in)
in one carton rate per packet
Udad with pepper 30

Udad with Garlic & Green Chillie 30

Udad with Green Chillie 30

Udad with Red Chillie 30

Udad with Plain Udad 30

Udad Jeera 30

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(50%Udad + 50%Moong) 30

Moong with Pepper-(50%Udad + 50%Moong) 30

Udad Special 35

Moong Special-(50%Udad & 50% Moong) 35

Punjabi Masala Special 35

Udad Sindhi Masala Special 35

Mathia Special 35

Dhamta Special 35

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’ campaign continues to
be aired on specific regional channels. For e.g. Alpha Guajarati, Alpha Bengali, Sun etc.

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They also advertise in English and regional newspapers. The distributors also need to be
motivated properly, so that they in turn make a greater effort to sell large volumes of the
products to the retailers. Targets are set quarterly for the distributors i.e. should they exceed
this target; the distributor will receive a further 1% discount.

Advertising:

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In starting, the advertising was undertaken through the vernacular newspapers, television
and radio. The money for advertisements was spent by the Polypropylene Division,
which recovered the same by adding it to the price of the bags that it supplied to all the
branches and divisions throughout India. Brand is having the strength of “ Consistently
Good Quality” as its USP. Communicated its Crispness and quality through ads. Ads
features a Bunny ( mascot) and jingle ‘Khurram Kharram”. Aired on specific regional
channels e.g. Alpha Gujrati, Sun TV etc

Packaging Process:
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The institution itself carries out the packaging process instead of having collaboration
with others. These plastic bags are manufactured without any technical help or
machinery; instead it is hand-made. These employees are also women. The packaging
department comprises of 70 sister members. The bags that are used for packing
papads are Polpopryin (PP) bags. These bags are manufactured at a factory situated at
Dahisar. Because of this it prevent duplication of their product.

Quality Check:

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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.

Divisions:
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Shri Mahila Griha Udyog has diversified its various activities. Besides it's world famous
papads it also currently has -

A Flour Division at Vashi (Mumbai) where flour is milled from Udad Dal
and Moong Dal.
A Masala Division at Cottongreen (alongwith a Quality Control Laboratory)
at the same place where different kinds of spice powders like Turmeric,
Chillies, Coriander and ready mix masala and like Garam Masala, Tea
Masala, Pav Bhaji Masala, Punjabi Chole Masala etc. are prepared and
packed in consumer packs.
A Printing Division also at the same place.
Lijjat Advertising Division at Bandra (Mumbai)
A Khakhra Division at Buhari (Dist-Valod)
Chapati Divisions at Wadala, Borivali, Mulund & Kandivali (Hanuman
Nagar)
A Polypropylene set-up at Kashi-Mira Road.
A Vadi producing factory at Valod.
A Bakery Division at Valod.
A Detergent Powder and Cakes manufacturing unit at Pune (Sanaswadi) and
Hyderabad.

Distribution Flow Chart:


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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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Distribution flow chart

Their distributors pick up the quantity of papad they require and pay cash on
delivery because they pay their bens (members are called bens, or sisters) every day. Since
they have an estimate of the quantity each distributor takes, they produce accordingly. This
ensures that they neither stock inventory nor pay heavily for storage.
They have about 32 distributors in Mumbai. Each distributor picks up an average of 100
boxes per day from the depot. This is where their job ends. They are not involved in how and
where a distributor delivers as long as he stays within the area they have marked for him.
Generally each distributor has his three-wheeler and about eight to ten salesmen to deliver to
retail outlets within his territory.

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To select a distributor, they first give an advertisement in newspapers for the areas they have
marked. Members from their marketing division personally go and check the godown
facilities and only on their approval do they appoint distributors.
A distributor pays them Rs 150,000 as deposit. They make it clear to them that they must pay
on delivery if they want our distributorship. This system is followed all over India and it
works well for them.
When they discover that there is demand in a particular place, they open a new
branch, like the recently opened one in Jammu and Kashmir. Whether or not they have a
centre in an area, their goods reach there.
For example, they do not have any centre in Goa, but they have appointed a
distributor for that area to ensure that Lijjat papads reach Goa. Their communication with
distributors is regular through monthly meetings where they discuss their problems and also
the issues that they may have about quality, price, reach, etc.
They do not have individual door-to-door salesmen or women selling from homes
only the appointed distributor for the area. The same system is followed for other products,
but they may have different distributors and depots for different products

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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.

Collection flow chart

Again with exporters, our responsibility ends with delivery. They are, both, expected and
encouraged to check the goods on collection. After that, where and how they export is their
call. At present, 30 per cent to 35 per cent of the production of Lijjat Papad is being exported,
mainly to countries like the United States, the United Kingdom, the Middle East, Singapore,
Hong Kong and Holland.

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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.

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Profit Generation:

Profit generation is considered essential as that is what makes the organization self
sustainable. To run any organization specially lijjat their must profit to their business
Running. Lijjat is huge organization structure. To support, hold, or bear up from below profit
is very important.

Lijjat is register under KHADI & VILLAGE INDUSTRIES COMMISSION in 1965


This help lijjat is many way. The Khadi and Village Industries Commission have sought
exemption for its products from the value added tax (VAT). Which the institution availed
bank finance of Rs. 5.90 crore during 1998-99 and 1999-2000 and Rs. 7.90 crore during the
Period 2000-01 to 2003-04 from three different banks at varying rates of interest. 7.1.3 The
rates charged by the three banks namely, Bank of Baroda, Bank of India and Dena Bank for
the period April 2002 to March 2004 were 0.5 per cent to 2 per cent, 1.36 per cent to 2.6 per
cent, and 3.06 per cent to 4 per cent higher than the prime lending rates fixed by the
respective banks. Hence, the Commission had to bear excess interest liability of Rs. 38.70
lakh for the period 2002-03 and 2003-04. Further, considering the average difference in rates
of interest, the excess payment of interest subsidy for the period 1998-99 to 2001-02 worked
out approximately Rs. 64.47 lakh.

In lijjat there is less number of administrative staff per centre to reduce expenses. Because of
this salary to given to the staff is saved.

Own network of suppliers as the product range does not give credit to the retailers. Because
policy of lijjat all transaction are due in cash. The risk of bad debtor is fully avoided. All of
their money is recovered in very fast. Today, Lijjat Papad is the generic reference for papads

Each branch is responsible for all activities from production to packaging to collection and
distribution of vanai and profit for its particular geographical region. This ensures that each
branch works efficiently with profit as motive

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Financials:

liijat papad
sasa
Masala
Khakra
other

Pie chart of PROFIT

The accumulated profits of the Lijjat enterprise stand at Rs. 80 million.

The annual profits for the year are Rs. 200 million. This was achieved on an annual turnover
in 2008-09 of Rs. 4.7 billion. liijat papad contribute around 45% of total sale in lijjat. Sasa
had annual sales of Rs 700 million, accounting for 17 percent of Lijjat's total turnover in
2009. Masala, khakra and other had sales around Rs 1.8 billion. Total to 19% of total lijjat
sales. Other contribute about 18% of lijjat sales.

The Sisters Savings Fund is also available to the each of the Lijjat branches, to tide over
short-term cash deficits, in case of necessity. If any case lijjat need money there can use
money from sister saving fund. These funds can use organization for short period of time. By
using this funds there does not to pay any interest to anyone. We can say that there are using
fund of free. Generation of resources and rotating working capital on a weekly/biweekly
cycle.

Marketing is on a strictly cash-and-carry basis, allowing for funds to be continuously


recycled. There does not give any discount to any retail. All transactions are recorded on a
daily basis.P & L and Balance Sheet are prepared every month. Branch doesn’t open for
transaction in case the accounts are incomplete for the previous day.
The average monthly income to each worker is Rs.3000/mth.
Loans of Rs. 8.94 lakhs under the Processing Cereals and Pulses Industry Scheme., for
expansion of existing branches, establishment of new ones and for purchase of equipment for
the masala unit .On the whole, labour charges work out to about 20-25 per cent of the total
cost, with raw materials consuming 55-60 per cent and sales and other administrative
expenses making up the remaining 20 per cent

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Exports:

Lijjat’s exports alone account for Rs 24crs (Rs 240 million).Not directly involved in
exporting, but recognised professional merchant exporters (who also export other food
products) place an export order .Only on receiving the full advance through a cheque
production is undertaken. Because all exports are done from Mumbai, the supply also comes
from here. Export production is of the same quality as daily production.Again with exporters,
responsibility ends with delivery.At present, 30 per cent to 35 per cent of the production of
Lijjat Papad is being exported, mainly to countries like the United States, the United
Kingdom, the Middle East, Singapore, Hong Kong and Holland.

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Business is the Motto:

Run and perceived as a serious business, not a charity organisation. There is no place for
feelings of pity, sympathy or charity among members. We also do not accept donation or
charity of any kind, even if voluntarily offered. This has helped the organisation retain
independence and brought quick growth. It has given clear vision of the path of progress.
Maintaining proper accounts has always been on our agenda Every branch closes the
account book every day.

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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

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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 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

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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

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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. The institution provided the finance and
Supervised the work of construction of fifty-eight houses for the people of the village.
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 Guidance on further studies Educational and hobby centres for
rural women Free computer training to sisters’ children Loans and housing assistance.

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Summing it up:

The most interesting lesson managers can pick up from Shri Mahila Grihan Udyog
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 and
Matchsticks. But most promising among them is the chapatti division with six branches in
Mumbai. Here, the women come in to work at around seven in the morning and make
Contributed 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 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,”
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, 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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