National Institute of Industrial Engineering

SIFE NITIE

National Institute of Industrial Engineering, Mumbai

PROJECT REPORT ON DESIGNING A SUSTAINABLE BUSINESS MODEL of FOOD PRODUCTS MANUFACTURING FOR SHG

National Institute of Industrial Engineering

SIFE NITIE

Abstract
Student in Free Enterprise (SIFE) is an international organization that brings together the top leaders of today and tomorrow to create a better and more sustainable world through the positive power of business. SIFE global network consist of business executives, university students and academic leaders. SIFE NITE has taken the initiative by establishing project such as PRAYATNA, EJAAGRAN, SANKALP & FIN-GYAN. In 2010, to create & maintain the sustainability of Project Fin-Gyan, a new Project OJASWINI rejuvenated. Its main aim is to boost women empowerment by starting self driven enterprise which initially focuses to provide the food products for the students in NITIE & IIT Institute. To execute this project NITIE assistance is also of prime importance. Project OJASWINI is initiated by SIFE NITIE student to help in creating confidence and awareness among the members of SHG regarding health, nutrition, education, hygiene and economic up liftment. We are dedicating this project to woman in Vihar Lake, Darga village & Morargi Nagar.

National Institute of Industrial Engineering

SIFE NITIE

Contents Title
Introduction Current Scenario Metier for the Masses Business Process: Phase 1 Phase 2 Phase 3 Budget Analysis Impact on Community Project Prospect Acknowledgement

Page No.
4 4 7

7 9 10 8 11 11 12

National Institute of Industrial Engineering 1. Introduction:

SIFE NITIE

SIFE (Student in Free Enterprises) is the non-profit organization that works with the leaders in business and higher education to mobilize University student to make a difference in their communities while developing the skill to become socially responsible business leaders. As a part of NITIE Business Education, we try to implement our Knowledge to develop the business concepts in the people those who are under up liftment. The empowerment of women refers to providing the necessary rights and responsibilities to women in order to make them self-reliant. Empowerment is the process of building capacities of women, creating an atmosphere which will enable people to fully utilize their creative potentials. Empowerment gives women, the capacity to influence decision making process, planning, implementation and evaluation. Empowerment realize them their potential, team work capability, dedication, decision making, greater control over the circumstances which would free them from the shackles of custom beliefs and practices. 2. Current Scenario: Considering the History of India, Womens education got a fillip after the country got independence in 1947 and the government has taken various measures to provide education to all Indian women. As a result womens literacy rate has grown over the three decades and the growth of female literacy has in fact been higher than that of male literacy rate. While in 1971 only 22% of Indian women were literate, by the end of 2001 54.16% female were literate. The growth of female literacy rate is 14.87% as compared to 11.72 % of that of male literacy rate.

Fig. 2.1 Survey in Vihar lake Village All members from Ojaswini team along with senior members visited the village.

National Institute of Industrial Engineering As a result the team decided to design the Business Plan and execute it to empower the women. The best plan was to carry out the Population survey in the diameter of 3 m around NITIE campus. The survey depicted the broad view about the interest and willingness of women to strengthen their family. We did the survey in the Darga Village, Morarji Nagar, Vihar lake Village and collected the names of 70 women to know there interest in work together and earn together.

SIFE NITIE

% of Women interested in SHG

Fig. 2.2 % of Women interested in SHG The list of some of the women is as follows. Sr. No. Name Are they aware of SHG? Are they willing to form SHG? Skills they want to apply in business? re they willing to relocate themselves outside village for assigned value? How much free time they can spend in work? 3-4 hours

Radha Ghatan

No

Yes

Papad Making, Sewing Papad Making Sewing Papad Making Sewing

Yes

2 3 4

Asha Jadhav Sheetal Jadhav Kavita Jadhav

No Yes Yes

No Yes Yes

Yes No No

2 hours 3 hours 3 hours 3-4 hours 3 hours

Parwati Kolekar Sunanda Jadhav

Yes

Yes

Yes

Yes

Yes

No

Yes

National Institute of Industrial Engineering

SIFE NITIE 3-4 hours 3 hours

Meena Ghatare Ranjana Basant Ankita Harwate

Yes

Yes

No Papad Making Papad making Papad, Sewing

Yes

Yes

Yes

No

Yes

Yes

Yes

3 hours

10

Bharti Jadhav

Yes

Yes

No

3 hours

The survey carried out indicated the positive result. Out of 70 women 25 were ready to form a SHG group and run their self owned enterprises. Most of them (50%) prefer Papad making as their initial start; less than 20% prefer Sewing. This was sufficient for the head start.

Fig 2.3. % of Women for Business Start up So, the team in discussion with SHG members, Faculty advisor Assoc. Prof. V.B.Khanapuri & Ojaswini team members decided to design the robust structure for Papad making enterprise.

National Institute of Industrial Engineering 3. Metier for the Masses:

SIFE NITIE

To design the process, the first meeting was held on 28th Aug. 2010 with Assoc. Prof. V. B. Khanapuri. Design was formulated in backward approach i.e. from customer to suppliers. As to run the pilot project, the target audience was identified as NITIE Hostel Mess 1/2 & 3/4.

Link A

Link B

Fig 3.1 Phase 1- Business Process The plan was designed in 3 phases. Phase 1: Link A: SHG members will be manufacturing papads in the room which will be provided in NITIE campus. Seek sponsorship from Companies to finance initial investment. Training for papad making, Hygiene conditions to be maintained will be delivered to them by authorised trainer. Supply of Raw material i.e. Urad Dal, Papad Masala, etc. on monthly basis. Papads will be delivered to NITIE Mess & colony of same quality as provided now but with same or low price. As per Staff Club Secretary Mr. Pathankar, staff members will take control over the SHG members to manage the enterprise
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National Institute of Industrial Engineering

Days in month 30 Shop A

SIFE NITIE

Urad Dal Retail Price 90 W/s Price 78

Papad Requirement Monthly(No.of Daily Papads) (No)

Cost Calculation Monthly 47430

Sell Price Rs./kg Rs./kg Revenue 160 67

Profit Daily 1139 Monthly 34170

Shop B

88

80 84

51000

1700

48450

50490

160

81600

65

1105

33150

Shop C

90

75

45900

160

70

1190

35700

1. Enter the no. of days in a current month in A2 2. Enter the Demand in between cell D21 to D25

Mess 1/2

Mess 3/4

Total Shop

Share Per No. of Ladies Ladies (Monthly) 15 15 15 2278 2210 2380

gm/kg of udit dal Fulkhar Salt shoup Meera Hing 28 28 8 28 8

797

NITIE Mess Strength

400

400

1600 0 0 0 0 0

A B C

L&T

2380

National Institute of Industrial Engineering Link B: SHG members will be absorbed by Lijjat.

SIFE NITIE

Ladies in rotation will collect the dough from the Lijjat centre for the entire SHG members. Dough will be brought to the NITIE campus room or to SHG members respective room(home). Ladies will make the Papads and supply it to Lijjat centre next day earning salary of Rs. 22/kg from the third day. Staff Club members still will have the authority over the SHG to manage it. Phase 2:

Fig 3.2 Phase 2 Business Process Link A of phase 1 is followed. Proposed collaboration with L & T for supplying papad to their canteens and generating revenue. Fig. 3.3 Capacity of making Papad L & T recording it as CSR activity. Packed papads will be made available to canteens with packaging material having NITIE, SIFE NITIE & L&T logo.

National Institute of Industrial Engineering

SIFE NITIE

We can see the capacity to make papads are high. Unless we get market it will be under utilizing the capacity of women and thus hampering their growth. Phase 3:

Fig. 3.3 Phase 3 Business Process Expanding the no. of SHG in near- by village. Collaboration with IIT Bombay to supply Papads in Messes. Collaboration with NGOs to create the market for papads in retail stores.

Out of 3 phases, first 2 phases are already in progress. Following people are in contact from L & T. 1. Mr. Mabel Abraham- CSR Head, L & T 2. Mr. Karthik Iyer- Manager, Welding Shop Dept. Following people helped in coordinating with Vihar lake village, Darga Village for surveying and various other initiatives. 1. Mr. Deepak 2. Mr. Dharma respectively. 3. Mr. Dinesh Mohite helped in coordinating with Lijjat centre at Bhandup.

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National Institute of Industrial Engineering 4. Impact on Community: If we have 25 members in SHG, considering the family of 4, the business plan will have an impact on at least 100 people at a time. It will contribute to increase in their family income as well as overall growth of ladies and their children.

SIFE NITIE

SHG

25 Members

Husband + Wife

2 Children

Fig. 4.1 Impact on Community 5. Project Prospect: Our aim is to provide integrated social empowerment of women to Help them in establishing self-reliant Womens Self Help Groups (SHG's). Achieve all-round empowerment of women by ensuring direct access

and control over resources. Fig. 5.1 Business Network Help in creating confidence and awareness among the members of SHGs regarding health, nutrition, education, hygiene and economic up liftment. Empower women by providing sustainable employment opportunities. Help in upgrading their skills, forming viable groups, providing access to credit facilities and arranging for marketing linkages.
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National Institute of Industrial Engineering 6. Expectations from NITIE:

SIFE NITIE

1) Infrastructure: A room which will be the work centre for making Papads. It will be well equipped with electricity, water facility and furniture like fan, chairs (minimum 4), one table and one notice board/white board. 2) Staff: Lady Members from Staff Club to manage the SHG at Work Centre. She will be take control over the SHG; managing the supply demand, salaries of SHG members and coordinating between suppliers, distributors, customers. 3) Staff Club: Staff Club Senior Authorities will help us in providing any Licences required from BMC, sponsorship from any company, NGO contacts for expansion of enterprise and providing the Manager for Enterprise. And no doubt, Directors Support and motivation in co-ordinating all activities.

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National Institute of Industrial Engineering

SIFE NITIE

ACKNOWLEDGMENT
It is our privilege to express our sincerest regards to our SIFE Faculty Advisor Prof. V. B. Khanapuri & President Mr. Rahul Singh for their valuable inputs, able guidance, encouragement, whole-hearted cooperation and constructive criticism to rejuvenate the project. We deeply express our sincere thanks to Staff Club Secretary Mr. Pathankar for kind support, motivation and guidance for facilitating our proposal in front of NITIE Director. We take this opportunity to thank all our SIFE Members who have directly or indirectly helped in designing our project. Last but not the least we pay our respects and love to our parents, friends for their cooperation and support.

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