A PROJECT REPORT ON

A STUDY ON WOMAN EMPOWERMENT WITH REFERENCE

TO SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD
SUBMITTED BY
TAMBOLI AKSHAY SANTOSH
T.Y.B.M.S. [Semester V]

SATYAGRIHA COLLEGE

KHARGHAR NAVI MUMBAI 41210

SUBMITTED TO
UNIVERSITY OF MUMBAI
ACADEMIC YEAR
2016-2017
PROJECT GUIDE
PROF. LALITA YASHVANTE

DECLARATION

I, TAMBOLI AKSHAY SANTOSH of SATYAGRIHA COLLEGE KHARGHAR NAVI MUMBAI of

T.Y.B.M.S [Semester V] hereby declare that I have compiled this project on A STUDY ON WOMAN
EMPOWERMENT WITH REFERENCE TO SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD in the
academic year 2016-2017. The information submitted is true and original to the best of my
knowledge.

Signature of the Student,

TAMBOLI AKSHAY SANTOSH

CERTIFICATE

I, Prof. LALITA YASHWANTE hereby certify that TAMBOLI AKSHAY SANTOSH of SATYAGRIHA
COLLEGE KHARGHAR of T.Y.B.M.S [Semester V] has completed project on A STUDY ON
WOMAN EMPOWERMENT WITH REFERENCE TO SHRI MAHILA GRIHA UDYOG LIJJAT
PAPAD in the academic year 2016-2017. The information submitted is true and original to the best
of my knowledge.

Principal

Project Guide

Dr. G.K. Dongargaonkar

Lalita Yashwante

External Examiner

ACKNOWLEDGEMENT
It gives me immense pleasure in presenting this project on the topic of A STUDY OF FINANCE
DEPARTMENT OF CENTURY RAYON. In this project, I have given brief description about the
organization, which has been started by the womens organization. Im thankful to P, for offering
me this course.

I wish to take this opportunity to express my deep sense of gratitude to Prof. Lalita Yashwante,
faculty of SATYAGRIHA COLLEGE KHARGHAR, for being my guide for this project. She has
been a constant course of inspiration and I sincerely thank her for her suggestion and help in
preparing this report.
I would also like to express my deep sense of gratitude to the members of the organization for their
co-operation and providing adequate information about the company and related information. Last
but not the least; I would like to express my sincere gratitude to my parents, teachers, and friends
for their support, co-operation and their prayers without which my project would not have been
completed.

INDEX

Chapter No.
1

Topic
Introduction

Page no.
8

Introduction of Study
Background

2
3

Objective, Scope and Significance

Company Profile

11
15

History
Beginning

4
5

Organisation Structure & Management

Working of Lijjat

7
8
9
10

Recruitment
Production & Distribution Process
Collection Method
Accountability

Marketing & Finance

20
23

33

Marketing Mix
Diversification
Segmentation
Sources of Capital

SWOT Analysis
Core Values of Lijjat
Challenges & Potential
Women Empowerment

39
40
44
46

Role of Women Empowerment

11
12
13
14

Key factor of Success & Awards

Lijjat- Other related information
Research & Development
Research Methodology

53
56
61
65

Hypothesis
Method of Collection

15
16
17
18
19
20

Data Analysis & Interpretation

Problems & Solutions
Review of Literature
Findings
Conclusion
Annexure

69
84
86
90
91
93

EXECUTIVE SUMMARY
SHRI MAHILA GRIHA UDHYOG LIJJAT PAPAD, popularly known as Lijjat, needs no introduction.
Lijjat is womans 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
blessing of Shri Chhanganlal Karamshi Parekh popularly known as Pujya Chhaganbapa who was
a member of the servants of India society and a highly successful social worker. In 1996 it was
recognized by the khadi & village industries commission under the chairmanship of Pujya Damodar
Dattani.
A deeper insight by the report shows Lijjats achievements and services renders to the society and
how it has help the Indian economy to grow tremendously in the past few years and in the tears to
come.
What is the reason for its success? The working of the organization, management future plans.
Lijjat is the story of a business house that has created wealth for a nation and the story of pioneers
like Pujya Chhaganbapa, Pujya Damodar Dattani.

Chapter-1
Introduction

Be it an evening snack, or a banquet or a meal at home, The Papad finds its due place on the
dining table. No Indian meal is complete without it, and Indias biggest Papad success story is
Undoubtedly, Lijjat.
Shri Mahila Griha Udyog Lijjat Papad is a Women's organisation manufacturing various products.
Lijjat is a women's organisation of the women, by the women and for the women. 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 and much more.
Only women can become members of Lijjat, and all of its members, addressed as sisters, own
the organization. Lijjats main product is a thin, round, savory snack called papad, and papad

rolling is the major activity of the member sisters. These women, also called Bens or sisters, had
no formal education but felt that they could do something more worthwhile with their free time and
pickle - papad making skills. Their commitment and perseverance has helped them to become a
large and successful organization today. Lijjat is not only helping its members, primarily
uneducated women for contributing to their family income but also empowering them with
employable skills. Lijjat's strong value system and quality consciousness has created a sound and
sustainable business model for them. It is also noteworthy for its commitment to improving the
quality of lives of its members.
Today, Lijjat is more than just a household name for 'papad' (India's most popular crispy bread).
Started with a modest loan of Rs 80, the cooperative now has annual sales exceeding Rs 301
crore (Rs 3.1 billion). Lijjat Papad is an organisation set up in 1959 by a group of women who
started a small business for neighborhood selling, by rolling papads with a meager investment of
Rupees eighty only, borrowed from others has an annual turnover of around Rs. 650 crore, with Rs.
29 crore in exports (As of 2010). In 1966 it was registered under the Bombay Public Trust Act 1950
and also registered under Societies Registration Act, 1860 and got recognition from Khadi & Village
Industries Commission as a village industry. It provides employment to around 48,000 women
without discrimination in caste, creed and religion. Lijjat is headquartered in Mumbai and has 72
branches and 35 divisions all over India.
A review of government's programmes for women empowerment reveal that little has been done or
achieved through these programmes. There have been continued imbalances in the empowerment
policy of women with respect to social and economic backwardness. Women constitute 52% of
Indias population, but still their needs and interest is sidelined. Empowerment of women is
meaningless until women herself is aware about it. The most important thing is educating women
and literacy is a key for any society to develop. Policies should be framed with respect to
empowering women and it should be brought into the mainstream of any planning. Lijjat is one
such organization which has defined the mechanism for womens development to bring in
individual and collective empowerment through improvement in both condition and position of
women.

Background
Women, the most important and respectable part of the society since ages is economically
backward as their efforts are not awarded. But they are changing and becoming demanding. They
have started showing interest to be independent. They no longer want to have any support as they
are using their skills in financially rewarding activities. They are coming with creative and innovative
ideas and starting the small and medium enterprises. They are changing the scenario of the society
with hard work and sheer determination. Empowerment of women is a commitment and developing
strategies which are sensitive to recognizing women's contribution and their knowledge as the first
step. Women require principally social support to fight their sense of inadequacy and fears to
enhance their self-respect and dignity.
Womens empowerment is a process in which women gain greater share of control over resources
i.e. material, human and intellectual and financial resources. Empowerment of women signifies
harnessing women power by utilizing their tremendous potential and encouraging them to work
towards attaining a dignified and satisfying way of life through confidence and competence. It is a
fact that most of the women are engage in activities which are neither productive nor monetarily
rewarding. But this is changing and the development is coming in the form of amending several
women specific legislations and implemented a plethora of programs and schemes for womens
well-being and economic emancipation. Women found privileges in the constitutions of India,
covering fundamental rights, The Directive principles of the State Policy and Fundamental Duties
etc virtually assure equal status to women and provide special protection and to eliminate
discrimination against women in different spheres of life. Womens are no longer a burden on the
society they are becoming independent socially and economically. They are gaining experience,
becoming educated and working hard in order to make their own identity.
Establishment of Shri Mahila Griha Udyog Lijjat Papad society is one such initiative which aims at
women's empowerment which creates and strengthens sisterhood and to promote overall
nurturing, caring and gentleness. Setting up of Shri Mahila Griha Udyog Lijjat Papad is one such
initiative. The society and trust is exemplary and stands unique in providing more and more decent
employment with least investment to the downtrodden, illiterate, semi-illiterate and unskilled
women who are in sense ignored by the society. These are under privileged and destitute women,
instead of becoming burden on the society are earning their own bread and butter and standing on
their own feet by rolling papads in their houses at their leisure time.
9

Chapter 2

Objective of Study
The objective of this study is focused on contribution of Shri Mahila Griha Udyog Lijjat Papad
Society on Women Empowerment. The study had conducted a survey of 50 respondents from Shri
Mahila Griha Udyod Lijjat Papad Society in Bhiwandi city through structured questionnaire. The
study found that it has positively contributed in the psychological, social and economic factors in
empowerment of women through Shri Mahila Griha Udyod Lijjat Papad Society. The authors
conclude that women empowerment means a lot, but the ultimate goal is materialize only when her
complementary role is recognized by the society. Lijjats contribution is only a step towards
empowerment, but more such organizations should come forward.

10

Scope of the study

Economies of scope (Diversification):

Lijjat started diversification in fields related to papad making

The products needed similar raw materials or skills
The existing supply chain was used very efficiently
Khakra, Spices, Wadi, Wheat flour, Bakery items are few examples
Major step to diversify in 1988: Intoduction of Sasa Soap
Again, identified opportunity: Soap market in India , then rose by 15%

Vertical Integration:

Large Scale production Make rather than buy

Various Processes like:
o Flour Mills
o Print Division
o Polypropylene packing
were undertaken aimed at supporting production processes without incurring extra cost

Attracted international trade opportunities:

Late 1980s : started exports

1996: VP of Uganda visited with a view to setup such a venture
Over Rs. 12 Crores of exports

11

A few setbacks at various times:

Initials attempts to expand by opening branches went unsuccessful

Ownership issues cropped up
Issues of duplicate players
Levying the taxes on Sasa detergents sale
But, overall a venture that created a high positive social impact

Acknowledgement by various authorities:

Best village industries Institution: from KVIC for period 1998-99 to 2000-01
Business women of the year in 2002
PHDCCI Brand Equity Award in 2005

Significance of the study

There is easy availability of papad in locality.
Lijjat papad industries creates positive awareness regarding the papad,so papad can be
had in a daily diet.
Lijjat papad industries create employment opportunities especially for women.
This opportunities help in growth and development of nation as women labour gets
chance to show their skill and that help in earning money, which indirectly leads of
growth.
Communication channel also get increased.
This company focused on welfare of the women.
It has spread its reach to the rural areas which lead to development after establishment
of lijjat papad industries.
Lijjat papad industries provide equal rights to both men and women, this shows the sigh
of peace and growth.
All members have the right to vote for electing department heads.
Members also participate in decision making process.
Investment cost is been very less because women prepare papads with their mutual
effort which doesnt require machineries
12

Not only welfare of the womens done but welfare for their families is also done
Lijjat papad industries provide awards for employee for their better performances.
Lijjat papad industries provide travelling facility to her employee
Lijjat papad industries motive their employee to work hard.
Lijjat papad industries make female independent.

Chapter-3
Company Profile
History
Lijjat is a women's organisation of the women, by the women and for the women, which was
started in 1959 with 7 lady members with a borrowed sum of Rs. 80/- at Girgaum in Mumbai.
The turning point of our Institution was in 1966 when it was registered under the Bombay Public
Trust Act 1950 and also registered under Societies Registration Act, 1860 and got recognition from
Khadi & Village Industries Commission as a village industry.
The objective of the Institution is to provide employment to the ladies to enable them to earn
decent and dignified livelihood.

13

Any women who can render physical work in this Institution without distinction of caste, creed and
colour and agrees to abide by the objective of the Institution can become a member of the
Institution from the date on which she starts working. Papad production work starts at early hours
in the morning i.e. 4.30 a.m. They have bus which picks the members from the closest point of
residence to the branch and back home.
Every branch is headed by a Sanchalika to see the production of the branch. We have a Central
Managing Committee, which consist of 21 members out of, which we have 6 (Six) elected Office
Bearers i.e. President, Vice - President, 2 (Two) Secretaries and 2 (Two) Treasurers..
All the branches are autonomous units and the income or loss as the case may be of such unit is
borne by the owner sister members of that branch by increasing or decreasing their rolling charges
accordingly. The credit for rapid progress goes to the constant vigilance on the part of sister
members maintaining the quality of Lijjat Papad with their hard work.
14

Besides Lijjat Papad the Institution has other products like Masala, Chapaties, Detergent Powder
& Detergent Cakes. At present it has 81 Branches & 27 Divisions and gives self-employment to
about 43,000 sister members all over India.
Exports are made through Merchant Exporters to countries like UK, USA, Middle East Countries,
Thailand, Singapore, Hongkong, Holland, Japan, Australia and other Countries.

The Beginning
Lijjat was the brain child of women from Mumbai. The women lived in Lohana Niwas, a group of
five buildings in Girgaum. A majority of the women inhabitants of an old residential building in
Girgaum (a thickly populated area of South Mumbai), were busy attending their usual domestic
chores. They wanted to start a venture to create a sustainable livelihood using the only skill they
had i.e. cooking. It all began on 15th March 1959, which was a warm summer day with the sun
shining brightly in the cloudless sky.
A few of them, seven to be exact, gathered on the terrace of the building and started a small
inconspicuous function. The function ended shortly, the result - production of 4 packets of Papads
and a firm resolve to continue production. This pioneer batch of 7 ladies had set the ball rolling.
The seven women were Jaswantiben Jamnadas Popat, Parvatiben Ramdas Thodani, Ujamben
Narandas Kundalia, Banuben. N. Tanna, Laguben Amritlar Gokani, Jayaben V. Vithalani, and one
more lady whose name is not known.
15

Word of mouth and advertising in a local newspaper contributed to the rapid growth of the group,
and its membership increased from 7 to 300 during the first three years. As the days went by, the
additions to this initial group of 7 was ever-increasing. The institution began to grow.
The women borrowed Rs 80 from Chhaganlal Karamsi Parekh, a member of the Servants of India
Society and a social worker. They took over a loss-making papad making venture by one
Laxmidasbhai and bought the necessary ingredients and the basic infrastructure required to
manufacture papads. On 15 March 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 organisation incurred losses.

16

Chaganlal Karamsi Parekh, popularly known as Chaganbapa, was born on 27 th June, 1894 at
Rajkot. He was philanthropist, social worker who worked for up-liftment of poor, education and
social reform of women. He becomes guide for the formation of Lijjat company. Initially, the women
were making two different qualities of papads, 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 emphasised to them the importance of running it as a business enterprise and
maintaining proper accounts.
Chhaganbapa, the guide and philosopher of Shri Mahila Grih Udyog, recommended that these
women maintain high standards of production at any cost, a practice which later turned out to be
their main strength.

17

The Institution will always and ever be grateful to "Pitamaha" Late Shri Dattanibapa (Shri
Purshottam Damodar Dattani) for his contributions towards the Institution who showed the correct
path and guided the Institution till his last breath.

Lijjat follows Mahatma Gandhis principles of self-reliance and trusteeship, and all of its Member
sisters have equal rights.

Chapter-4
Organization structure and management
Lijjat believes in the philosophy of sarvodaya and collective ownership. It accepts all its working
members as the owners and an equal partner 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 membersister has the right to veto a decision. Men can only be salaried employees (accountants, drivers or
security guards), and not the members of the organisation (i.e. they are not the owners).

18

Lijjat organisation structure

The running of the organisation is entrusted to a managing committee of twenty-one members,

including the President, the Vice-President, two secretaries, and two treasurers. 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 of eleven member-sisters, again chosen by consensus.
The central office at Mumbai previously coordinated the activities of various branches. But, as the
organisation grew, the authority was decentralised 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.

19

All the branches follow the same set of instructions and have similar accounting system. To coordinate various branches in a region or state, there are branch co-ordination committees and area
meetings of the various branches in a state. The annual general meeting is attended by membersisters representing branches and divisions from 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 Nadu, 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
organisation. 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-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.
The quality of papads can vary due to quality of water used in various parts of India. To avoid any
inconsistencies, the final products are tested in the Lijjat's laboratory in Mumbai. In the monthly
meetings, the quality issue and modifications are tested. The central office purchases and
distributes all ingredients to maintain the quality of the final product. For example, the urad dal is
imported from Myanmar, asafetida is imported from Iran, and black pepper comes from Kerala. The
committee often makes surprise visits to various branches to assure that production conditions are
hygienic. When a new branch of Lijjat opens, a neighbouring Lijjat branch helps it by guiding and
training new members.
20

On successive failures of a branch to abide by the organisation's philosophy of consistent quality

and production of papads, the central committee reduces the daily wages of its members by 1
rupee. The member-sisters are also rewarded for extra effort. For instance, in 2002, the membersisters at the Rajkot branch received Rs 4,000 each as bonus, while the member sisters at Mumbai
and Thane branches received a 5-gram gold coin as an incentive. Several issues of Lijjat Patrika
enumerate the names of the names/numbers of the member-sisters, who were rewarded with the
cash or gold, for their extra efforts.

Chapter-5
Working of Lijjat
Recruitment
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 co-owner of the
organisation. The combination of inclusion and the active participation of women have endured as
Lijjats backbone for 43 years. The interests of all sisters are treated equally, because they sisters
21

from the Lijjat family. Any woman, 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 cooperative work. Member sisters 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, preparing 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 importance, and sisters
perform these activities with mutual cooperation and consent. When a new branch of Lijjat opens, a
neighbouring Lijjat branch helps it by guiding and training new members.

Production Process

22

Initially, the production process begins at 4.30 a.m. in the morning. All the sisters or bhaginis are
fetched from their homes at brought to their respective production centers in institutional vehicles.
These sisters who arrive at 5:00 a.m. are responsible for kneeding the papad dough.
After 7:00 a.m. the rest of the sisters come in and dough is distributed to each one of them in
dabbas They collect it and go back to their homes and start rolling rolling the dough. The rolled
dough is then dried on a piece of cloth under sunlight. The next morning the sister members bring
these papads back. From every 1000 gms of the dough, the weight of the final papad will amount
to only 800 gms.
In the second stage the rolled papads are sent to the quality control department for the regular
quality under the supervision of quality control executive. Lijjat has been maintaining of the same
standard since the day of its existing. The checking of the papads is done in a batch, and if any of
the Papad does not conform to the Lijjat standard then the whole batch is disposed off. The
institution ensures that these defective papads do not reach the market; hence they are disposed
in the sea instead of garbage bin. This guarantees that they never reach the market.

23

In case of any mistake, the institution not only tries to find out that who has made the mistake,
instead they also try to mistakes is borne by all the sister members, in case of heavy losses, but if
the loss is small or minute then the member who has made the mistake itself bears the loss. 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 handmade. 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.

24

Distribution Process
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.

Distribution Cycle of Lijjat

The distributors pick up the quantity of papad they require and pay cash on delivery because we
pay our bens (members are called bens, or sisters) every day. Since it has an estimate of the
quantity each distributor takes, we produce accordingly. This ensures that we neither stock
inventory nor pay heavily for storage.

25

It has about 32 distributors in Mumbai. Each distributor picks up an average of 100 boxes per day
from the depot. This is where its job ends. Lijjat is not involved in how and where a distributor
delivers as long as he stays within the area it 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.
To select a distributor, we first give an advertisement in newspapers for the areas it have marked.
Members from marketing division personally go and check the godown facilities and only on their
approval do we appoint distributors.
A distributor pays us Rs1, 50, 000 as deposit. Lijjat 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
us.
When it discovers that there is demand in a particular place, it open a new branch, like the recently
opened one in Jammu and Kashmir. Whether or not we have a centre in an area, our goods reach
there.
For example, it do not have any centre in Goa, but we have appointed a distributor for that area to
ensure that Lijjat papads reach Goa. Our communication with distributors is regular through
monthly meetings where the company discuss their problems and also the issues that we may
have about quality, price, reach, etc.
It does 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 we may
have different distributors and depots for different products.

26

Exports
The exports alone account for Rs 10 crore (Rs 100 million). Shri Mahila Griha Udyog Lijjat Papad
started exporting in 1980. At that time they, directly exported the products themselves. However,
this endeavor was shot lived and they stopped direct export in 1982.
It is not directly involved in exporting, but recognised professional merchant exporters (who also
export other food products) place an export order. The merchant exporters provide the cartons with
the delivery addresses printed on them. The papads are packed in these and returned to the
merchant exporters.
All export sales are made on advance payment basis. When the papads are exported to countries
where languages other than English are used, then inserts are added in the packets with all the
details given in that local language. All exports are done from Mumbai, the supply also comes from
here. Export production is of the same quality as daily production. In fact, some of the daily
productions are sent for export. They export to:
United Kingdom
United States of America
Middle East
Thailand
Other European Countries

27

Collection method of Lijjat

Again with exporters, its 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.
28

Accountability
Lijjat presents an explicit example of organizational accountability. The managing committee
members are selected from the member sisters on the basic of common consent. Any member
sister can express her interest to be a managing-committee member and be selected after due
procedure. The discussions are held openly, and decision powers lie in the hands of the sisters
who are present on that day. A single members object can nullify the decision of the whole group.
A member can ask an employee to quite without specifying the reason, but no employee can ask a
member to quite. However, a member can be asked to quite by another member (or members) if
found be involved in false practices or misconduct. Account books are easily accessible, ensuring
transparency in Lijjats working. Lijjat follows its own financial accountability principle; for instance,
there is only a0.5 rupee margin between the production cost and selling price of a 200-gram Papad
pack. There is a piece rate system, and sisters are paid on the basis of the number of papads
they roll. 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.
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. Profits and losses are shared equally 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 polypropylene division provides
money for advertisements and recovers it through additional charges on the bags that it supplies to
the branches and divisions across India

29

Distributing profits
It has accountants in every branch and every centre to maintain daily accounts. Profit (or loss, if
any) is shared among all the members of that branch.
We have a committee of 21 that decides how the profits are to be distributed. We generally buy
gold coins -- 5gm 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 who has
recently joined gets the same share as others who have been with us longer. Each branch
calculates its profit and divides it equally among all its members.
Mumbai has 12,000 members, the rest of Maharashtra has 22,000, and Gujarat has between 5,000
and 7,000 members.

Vanai
The institution has a trend of calling wages as vanai.
The vanai paid to the members depends upon the number of kilos rolled by them. The minimum a
member should roll is 5 Kgs. Some even roll upto 20 kgs. every day. The rate of vanai is Rs. 18/per kg. So this means that Rs.90 is the minimum paid to each member. Vanai is paid on daily basis
when they deliver the rolled papads and clear the quality tests.
The President and the vice-president are paid a fixed amount of vanai. They are not supposed to
roll papads as according to the norms only the person who has previously rolled papads can
become the vice-president or the president. They are entitled for the vanai only when they attend
the office and perform their respective duties. If on a particular day they remain absent then the
vanai is not paid to them.
This norm is applicable for the secretary and treasurer also.

30

Management

President
Vice - President TreasurerTreasurerSecretarySecretary-

Smt. Jyoti J. Naik

Smt. Kamal D.Dhandore
Smt. Sharda S.Landge
Kum. Pratibha H. Trilotkar
Smt. Malti M. Pawar
Smt. Sunanda R.Belnekar

Smt. Jyoti J. Naik

31

Chapter-6
Marketing & Finance
Market Positioning (Place)
As a business enterprise, the declining sales figure for three consecutive years Rs 298 crore
(1999-2000), Rs 288 crore (2000-2001) and Rs 281 crore (2001-2002) is a matter of concern for
Lijjat management. Some of its home turf in Maharashtra and Gujarat has been captured by a
growing competitive 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.
Though each branch is responsible for the marketing of its products in the areas allotted to it, the
new centralised marketing offices now procure surplus production from different branches and
market it at an all-India level. This coupled with a healthy upward trend in the export of Lijjat papad
positions Lijjat as the strongest brand in the papad industry. The other big brands in the papad
market are Bikaner, MDH and Saktibhog, but none seem to be able to make any dent in Lijjats
share of 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. Sisters claim they believe in doing the
business wisely and on sound business ethics. Dealers are given a set commission of seven per
cent and retailers earnings are fixed 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
papad were sold and the total income crossed Rs 0.65 million. According to the accountant at
Lijjats Ranchi branch, who wishes to remain unnamed (as that would shift the attention from sister32

members to employees and thus violate Lijjats principles and traditions), from 2003 Lijjat is aiming
at a sales target of a million rupees every month.

Thanks to sound advertising, Lijjat has already become a household name as a symbol of womens
strength and resurgence, and its recipe combining udad, moong, pepper and hing has conquered
the papad-eaters palate.

Pricing
Pricing of the products is also done at the head office. Lijjat papads all over India cost Rs 16.25 a
kg. This price factors in the cost of raw materials, transport, taxes, distributors commission, and
profit percentage and so on. Shri Mahila Griha Udyog Lijjat 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
Transport
Selling Expenses
Administrative expenses
A certain mark up is then added to these costs to account for the profits. Manufacturing Process
Sale of Papad amounts to about 45% of total sales.

Prices of Papad Available

Dealer Price

Consumer Price

Weights
100 gms.

General

Special

General

Special

22

23.5

24

26

33

200 gms.

44

47

48

52

250 gms.

49

53

54

59

500 gms.

105

114

115

125

1 kg

211

229

230

251

2.5 Kgs.

348

393

394

448

Export Prices ranges from Rs.44/- To Rs.48/-

Promotion
Lijjat has produced a number of memorable product promotion campaigns via local language
newspaper advertising, TV and radio campaigns, and through industry events and fairs. With each
division of the organization making proportional contributions for financing such campaigns, Lijjat
has been able to reach a nationwide catchment of customers and clients.
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 their annual expense on advertisements and promotions amounts to Rs. 60 Lakhs, a
mere 0.2% of total turnover. The extremely famous Bunny rabbit campaign continues to be aired
on specific regional channels. For e.g. Alpha Gujarati, Alpha Bengali, Sun etc. 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. Should
they exceed this target, the distributor will receive a further 1% discount

Product and Services

Besides Lijjat Papad the Institution has other products like Masala, Chapaties, Detergent Powder
& Detergent Cakes. After tasting tremendous success with their papads, Lijjat's manufactures
several products, of which the papad is the most famous:
Papad (Fourteen flavours, including lasan, moong, mirch, Punjabi and udad)
34

 Khakhra
Appalam
Masala
Vadi
Wheat flour
Bakery products
Chapati
SASA Detergent Powder
SASA Detergent Cake (Tikia)

SASA Nilam Detergent Powder

SASA Liquid Detergent

35

The group also initiated some unsuccessful ventures such as: Cottage leather (1979),
Matches (1979), and
Agarbattis (incense sticks).

Diversifications
Shri Mahila Griha Udyog has diversified its various activities. Besides it's world famous papads, it
also currently has
Flour Division (Vashi)
Masala Division and Quality Control Laboratory (Cotton Green)
Printing Division (Cotton Green)
Advertising Division, Bandra
Khakhra Division, (Buhari, Valod district)
36

 Chapati Divisions at Wadala, Borivali, Mulund and Kandivali

Polypropylene set-up (Kashi-Mira Road)
Vadi factory (Valod)
Bakery Division (Valod)
Detergent Powder and Cakes manufacturing unit (Dahisar) and office (Borivali)

Market Segmentation
The institution does not do market segmentation because they do not target age group or income
group because their product is for all the masses and classes. It is a product which is consumed in
each and every house as it is affordable to all. The Papad is available in many denominations from
Rs.11/- to Rs.270/- depending on the weight.

Sources Of Capital
Shri Mahila Griha Udyog Lijjat Papad secures its funding only through Banks.
Their banks are:
Bank Of India,
37

 Bank of Baroda
Dena Bank.
The bank interest charges are generally at 16%. Lijjat pays the interest to bank at this rate. Since
Lijjat is registered under the KVIC Act, they receive a subsidy on this interest paid. Therefore at the
end of the year, after procuring the necessary certificates from KVIC, 12% of the interest paid is
reimbursed to Lijjat.
Thus, in actuality Lijjat pays interest at the rate of 4%.

Working Capital Management and Tax Benefits

As per the notification issued by the State of Maharastra sale of Papad by Shri Mahila Griha
Udyog Lijjat Papad is exempt from the levy of sales tax for the period upto 31st March, 2002.
Shri Mahila Griha Udyog Lijjat Papad was granted exemption from the State of Maharashtra from
the sales tax on sale of detergent products up to the financial year 1994-95. Shri Mahila Griha
Udyog Lijjat Papad has made an application for getting appropriate exemptions under Sales Tax
Act under the subsequent years. Furthermore, based upon a decision in the similar case, Shri
Mahila Griha Udyog Lijjat Papad is contending that, it being a charitable Institution, is not a
Dealer within the meaning of Sales Tax Act and not liable to be assessed under the Bombay
Sales Tax Act.
Recently the Government has passed a new provision, which does not include detergent in the
PCPI list of products. Therefore, Shri Mahila Griha Udyog Lijjat Papad is liable to pay the Sales
Tax for their Sasa Detergent Powder. Negotiation is currently being carried out with the
government to exempt this product from Sales Tax as well.

Chapter 7
SWOT Analysis
Strengths
38

o Sincere Hardwork
o Development of woman by proding them a living / employment.
o Maintaining the same standard over the last 45 years.
o Having a unique status in the country.

Weakness
o The institution does not believe in holding any weakness for a permanent or a long
period of time.

Opportunity
o Expand the chapatti division into a full fledged meal service.
o More women will be employed in the new division.

Threats
o In terms of competition -

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 HLL, P&G ect.

Chapter-8
39

Core Values of Lijjat

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

These entire 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 its dealings are
carried out on a sound and pragmatic footing - Production of quality goods and at reasonable
prices. It has never and nor will it in the future, accept any charity, donation, gift or grant from any
quarter. On the contrary, the member sisters donate collectively for good causes from time to
time according to their capacity.

Besides the concept of business, the institution along with all it's member sisters have adopted
the concept of mutual family affection, concern and trust. All affairs of the institution are dealt in a
manner similar to that of a family carrying out its own daily household chores.

But the most important concept adopted by the institution is the concept of devotion. For the
member sisters, employees and well wishers, the institution 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 benefits but for
the benefit of all. In this institution work is worship. The institution is open for everybody who has

40

faith in its basis concepts

Lijjat is driven by values

Every member who joins in pledges, ". . . we will make all-round effort to ensure that the bens get
real fruit of their labour and we will not allow to happen any type of economic loss to the Institution
knowingly, unknowingly, directly or indirectly. We are aware that it is one of the very important
traditions of our Institution that neither sister-member nor employees take away wrongfully any
money or material from the Institution. Those who take away money or materials wrongfully from
the Institution are either beggars receiving alms from the bens or thugs and robbers extricating
bread from a sister's mouth."
Among others, the chief value that holds the institution firmly is a sense of self-dignity and respect.
It discourages any kind of class distinction and do not declare itself as an organisation for poor or
needy women.
Its thinking is straight. It is a business like any other even if the structure is different. There is no
place for feelings of pity, sympathy or charity among members.
It also does 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 them a clear vision of
the path of progress.
Maintaining proper accounts has always been on our agenda. When Lijjat was started out,
Chhagan Bapa, its mentor, had advised them to maintain accounts daily. Even today, every branch
closes the account book every day. They do not want to get into monetary hassles because of
badly managed accounts.
There is no place for prejudice on the basis of caste or religion, and democracy in its truest form is
encouraged. Following these values ensures that we are run and perceived as a serious business,
not a charity organisation.

41

Basic thoughts
It is a voluntary organization of sisters.
It never accepts charity or grant.
The organization is like a family and sisters run it as if they all belong to the same family.
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 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 revered place of worship.
No one can change these basic thoughts of the organization.

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
All the rights of the institution must belong to members only.
There must be maintenance of Lijjat quality at any cost.
There must be clean and time bound accounting system.

Culture
Lijjat Patrika, the in-house magazine, is published and circulated for a nominal rate to those
interested in the activities of Lijjat. It is published in many languages, including English, Gujarati,
Marathi and Hindi. It has emerged as a strong mode of communication for information related to
significant events and initiatives at Lijjat, in addition to presenting articles on women.
Member sisters across all branches of Lijjat recite an all-religion prayer before beginning their daily
activities. The sisters are free to choose their activities and each activity is given equal importance.

42

Leaving the organisation is voluntary. No member sister can be asked to leave unless or until she
goes against the organizational principles. There is no fixed retirement age at Lijjat. Once, when
the president Jyoti Naik was questioned about this anomaly, she said that there was no need to
make provision for a retirement age, as the emphasis obviously was on earning one's bread
through daily work, all through one's life.
Because of Lijjat's 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.

43

Chapter-9
Challenges and potential
The story of seven illiterate and poor women who borrowed Rs 80 to start a papad business, and
took its turnover from Rs 6,196 in the first year to Rs 300 crore in the next four decades, involving
over 40,000 women on its revolutionary march, is fanciful at any rate. But to say so would be
undermining the contribution of a well thought-out Gandhian business strategy, equally well
executed by his followers, late Chhaganlal Karamshi Parekh and Damodar Dattani, who worked
tirelessly from behind the scene. Their vision was clear an exclusive womens organisation run
and managed by them, a quality product that these women had the expertise to make, and, finally,
a work environment which is not competition-driven and mechanised but based on pure labour and
love for the organisation and its people.
Lijjat is today guided by separate divisions of advertising, marketing, sales promotion and exports.
There is greater coordination between branch offices (different production and marketing units) and
centralised marketing, advertising and exports departments. Transfer of finished products to
centralised marketing offices from different branches was worth Rs 113.52 crore and ad-spend
stood at Rs 2.55 crore for 2000-2001.
But more than its much-hyped sales figure, Lijjats experiment in the realm of corporate governance
stands out as one of a kind. All the centres are autonomous, profits remain with the respective
branches and are normally used to augment the business after a due share is distributed as extra
vanai charge to sister-members. Employees, numbering about 5,000 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
has opened up new employment opportunities for the sister-members; eligible candidates are
chosen and trained to work in its modern Polypropylene, Sasa detergent & cake and printing
divisions.
The Lijjat system did not collapse under the weight of its growing number of workers but,
on the contrary, gathered strength from them. It's story is one of teamwork and profitsharing.
44

Lijjats Ranchi branch was established in November 1997 bifurcating it 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-seater passenger vehicle) has also been purchased for the
conveyance of sister-members from home to the Lijjat office and back. This branch has 165 sistermembers and sold papad worth Rs 0.65 million in November 2002. Vanai charge is Rs 14 per
kilogram of papad and each sister was paid Rs 250 as extra vanai charge on Dipawali this year.
The Muzaffarpur branch, according to Lijjat sources, paid Rs 2,500 as extra vanai charge to its
sister-members. Similarly, the Mumbai and Thane branch distributed gold coins of five grams to
each of the 4,056 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-members from joblessness. These women also
work from their homes, where help from other family members not only adds up to the income but
also makes the work more enjoyable. At the workplace they are self-respecting, 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
woman competes with a man more as a man than a woman, says an elderly Gandhian, TK
Sumaiya, of Bombay Sarvodaya Mandal.

45

Chapter-10
Women Empowerment

Women the most important and respectable part of the society since ages is economically
backward as their efforts are not awarded. But they are changing and becoming demanding. They
have started showing interest to be independent. They no longer want to have any support as they
are using their skills in financially rewarding activities. They are coming with creative and innovative
ideas and starting the small and medium enterprises. They are changing the scenario of the society
with hard work and sheer determination. Empowerment of women is a commitment and developing
strategies which are sensitive to recognizing women's contribution and their knowledge as the first
step. Women require principally social support to fight their sense of inadequacy and fears to
enhance their self-respect and dignity.

46

Establishment of Shri Mahila Griha Udyog Lijjat Papad society is one such initiative which aims at
women's empowerment which creates and strengthens sisterhood and to promote overall
nurturing, caring and gentleness. The objective of this study is focused on contribution of Shri
Mahila Griha Udyod Lijjat Papad Society on Women Empowerment. The study had conducted a
survey of 60 respondents from Shri Mahila Griha Udyod Lijjat Papad Society in Bhiwandi city
through structured questionnaire. The study found that it has positively contributed in the
psychological, social and economic factors in empowerment of women through Shri Mahila Griha
Udyod Lijjat Papad Society. The authors conclude that women empowerment means a lot, but the
ultimate goal is materialize only when her complementary role is recognized by the society. Lijjats
contribution is only a step towards empowerment, but more such organizations should come
forward

Womens empowerment is a process in which women gain greater share of control over resources
i.e. material, human and intellectual and financial resources. Empowerment of women signifies
harnessing women power by utilizing their tremendous potential and encouraging them to work
towards attaining a dignified and satisfying way of life through confidence and competence. It is a
fact that most of the women are engage in activities which are neither productive nor monetarily
rewarding. But this is changing and the development is coming in the form of amending several
women specific legislations and implemented a plethora of programs and schemes for womens
well-being and economic emancipation. Women found privileges in the constitutions of India,
covering fundamental rights, The Directive principles of the State Policy and Fundamental Duties
etc virtually assure equal status to women and provide special protection and to eliminate
discrimination against women in different spheres of life. Womens are no longer a burden on the
society they are becoming independent socially and economically. They are gaining experience,
becoming educated and working hard in order to make their own identity. Setting up of Shri Mahila
Griha Udyog Lijjat Papad is one such initiative. The society and trust is exemplary and stands
unique in providing more and more decent employment with least investment to the downtrodden,
illiterate, semi-illiterate and unskilled women who are in sense ignored by the society. These are
under privileged and destitute women, instead of becoming burden on the society are earning their
own bread and butter and standing on their own feet by rolling papads in their houses at their
leisure time.

47

Milestones Of Shri Mahila Griha Udyog Lijjat Papad

Lijjat Papad is an organisation set up in 1959 by a group of women who started a small business
for neighborhood selling, by rolling papads with a meager investment of Rupees eighty only,
borrowed from others has an annual turnover of around Rs. 650 crore, with Rs. 29 crore in exports
(As of 2010). In 1966 it was registered under the Bombay Public Trust Act 1950 and also registered
under Societies Registration Act, 1860 and got recognition from Khadi & Village Industries
Commission as a village industry. It provides employment to around 48,000 women without
discrimination in caste, creed and religion. Lijjat is headquartered in Mumbai and has 72 branches
and 35 divisions all over India. These women, also called Bens or sisters, had no formal education
but felt that they could do something more worthwhile with their free time and pickle - papad
making skills. Their commitment and perseverance has helped them to become a large and
successful organization today. Lijjat is not only helping its members, primarily uneducated women
for contributing to their family income but also empowering them with employable skills. Lijjat's
strong value system and quality consciousness has created a sound and sustainable business
model for them. It is also noteworthy for its commitment to improving the quality of lives of its
members. A review of government's programmes for women empowerment reveal that little has
been done or achieved through these programmes. There have been continued imbalances in the
empowerment policy of women with respect to social and economic backwardness. Women
constitute 52% of Indias population, but still their needs and interest is sidelined. Empowerment of
women is meaningless until women herself is aware about it. The most important thing is educating
women and literacy is a key for any society to develop. Policies should be framed with respect to
empowering women and it should be brought into the mainstream of any planning. Lijjat is one
such organization which has defined the mechanism for womens development to bring in
individual and collective empowerment through improvement in both condition and position of
women. The credit goes to the sanchalika of Bhiwandi branch Mrs. Darshana Chinkate Madam
for bringing a change in Bhiwandi City. Her hard work and dedication towards the novel concepts of
social support given to women has made them proud, which in turn enables them to fight their
sense of inadequacy in order to enhance their self-respect and dignity. Empowering women means
becoming economically independent, controlling resources and reduction of burden of work. A
48

society like Lijjat aims at women's empowerment and to create and strengthen sisterhood and to
promote

overall nurturing, caring and gentleness. It was because of her sheer determination in Bhiwandi
many illiterate or semiliterate women are engaged in the task of self-employment.

Role in women empowerment

The growth of the Lijjat is often seen in the larger canvas of women and their empowerment. The
organisation has undertaken various efforts to promote literacy and computer education for
member-sisters and their families. A literacy campaign for sisters began through literacy classes at
Girgaum on 18 June 1999. Later, the managing committee decided to start such classes in all its
branches. From 1980 onwards, Lijjat started giving Chhaganbapa Smruti Scholarships to the
daughters of the member-sisters.
The member-sisters used their organisation as a medium to promote their and their families'
welfare. In the Valod centre they set up an educational and hobby centre for the rural women.
Orientation courses in typing, cooking, sewing, knitting and toy making as well as other courses
like child welfare, first aid and hygiene were taught. The first ever pucca (tarred) road in Valod to be
built and inaugurated in 1979 was with the help of the Lijjat, Valod branch.
In 1979, Lijjat teamed up with UNICEF to organise a seminar in Mumbai on "Child Care and Mother
Welfare", as part of the International Year of the Child celebrations. In October 1984, Bhadraben
Bhatt represented Lijjat at the UNESCO sponsored international workshop on "The role of women
in the assimilation and spread of technological innovation" held at NITIE, Powai. Alkaben Kalia
represented Lijjat at the national level meeting on women convened by the National Commission
on Self Employed Women.
At the behest of Mother Teresa, the member-sisters also took part in some activities of Asha Dhan,
an institution to care for destitute women. Lijjat member-sisters also tried to start a co-operative
bank, but the effort was not very successful.

49

Working from home

The best thing about this organization is that women get to work from home, that ways they can
take care of their family and kids and also contribute economically to the family. This is the best
part about this organization. Four ladies of Lijjat Papad had come, and one of them being Jyoti
Naik. They did not use any MBA words, neither did talk like revenue targets or how they want to
grow. They are very simple. From them it just seemed that one simple mantra of Lijjat Papad is
Papad, that is what they focus on, nothing more. These women dont care about the competition,
about market ups and downs; they just believe that if they make good tasty papads, at whatever
small scale that they can, they would be able to sell them. Of course one may argue that 42
branches in about 40 years is not such a speedy progress, but together and create something as
big as this. Then for what they stand for and the system that they have created is really amazing.

50

Valuing people
Lijjatss beginnings were modest. Seven women with no special skills but a strong determination to
earn dignity as individuals went ahead to make a successful business, doing what they knew best
-- rolling papads.
They leveraged their basic skill and turned it into a weapon because they believed in themselves
and in each other. And that's how they function even today. They believe in each other, in each
other's ability and commitment to take the institution towards progress.
It is this belief that has been the basis of their business model as well.
They understand the family, time and social pressures women face every day. They have simply to
turn these into an advantage and not an excuse. It serves everyone.
Lijjat helps these women who are not encouraged to work outside their homes, to contribute to the
family income. The bens take dough home and roll them into papads when they are free from their
domestic chores.
At the same time it is not prudent for the organisation to invest in office property for so many
members. The perfect fit for both is using the members' homes for the rolling and drying of papads.
No additional overhead costs, no investment either.
Valuing people and under-standing their problems has created for Lijjat a sound and sustainable
business model.
However, though it would make business sense to adopt modern technology for mass production
or use machines for packaging, etc, we haven't done so because it would defeat the very purpose
of our existence, which is to provide a source of livelihood and dignity to women through selfemployment.
51

In addition, we have one vehicle per branch, which, at fixed times, brings the bens and rolled
papads to the branch and also drops them back. This is done for all the bens -- those who mix the
dough, do the vanai (rolling), testing, packaging, etc.

Contribution to social service

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 for spread of primary education, undertaking blood donation drive,
organising health 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.

52

Chapter-11
Key Factors for Success
The merging of ownership with membership has encouraged uniform and sustained
organizational growth.
The consistent quality of the product has been a primary factor in establishing and
maintaining Lijjats brand image in the market for the last four decades.
The Sarvodaya philosophy proved vital in forming Lijjats foundation.
Lijjat has emerged as an innovative organization in which women from any religion, caste, or
class can become members. The pledge and all-religion prayer also encourage cooperative
work among women, irrespective of caste or religion.
Transparency in operations and a non-hierarchical structure has helped in establishing
organizational accountability among member sisters.

Lijjat encourages its members to give to others whatever they can, instead of expecting
help from others. Lijjat does not accept donations, but gives donations, which enhances
members self-esteem and pride in their own organization.

Calling the members sisters creates an informal work environment. Frequent meetings,
open interaction, and consensual distribution of tasks reduce the possibility of disputes
resulting from communication gaps and help 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 member sisters climb the
administrative ladder. Lijjat exemplifies a remarkable way of making leaders out of ordinary
women.

53

Awards

The Institution has received many Awards over the years but the few to remember.

Lijjat Papad has been chosen as a Power Brand 2010-2011 by the Indian Consumer and received
the Award on 4th February 2011 in New Delhi by our President Smt. Swati R. Paradkar .

54

The

Economic

Times

Award

given

to

the

Institution

for

Corporate

Excellence "Business Woman Of the Year" on 6th September 2002

At the National Convention on "Rural Industrialisation", held by Khadi & Village Industries
Commission along with Ministry of Agro and Rural Industries at New Delhi on 14th March 2003,
Institution recevied the "Best Village Industry Institution" award from Hon'ble Prime Minister
Shri Atal Bihari Vajpayee.

55

Recevied

"Brand

Equity

Award"

at

the

hands

of

Hon'ble

President

Dr. A.P.J Abdul Kalam at Vigyan Bhavan, New Delhi

Chapter-12
Lijjat Other related information

56

of

India

Shri Mahila Griha Udyog Lijjat Papad (Lijjat) is a cooperative established by Indian women that has
developed a unique model for development and empowerment for low income female workers.
Lijjat has more than 40,000 members and 62 branches across 17 states of the Republic of India
(India).
The cooperative has not only developed a number of quality products and brands including
wafers and breads; Lijjat has enhanced the skill of its members via capacity building and
communitarian programs.
As a result of Lijjats business and development strategies, thousands of women across India have
gained financial independence and improved the prospect of a better life for themselves and their
families. At the same time, the cooperative has established new models for community
development and poverty reduction and become a winner of multiple awards.

Development of Venture based on Sarvodaya Principles

This business model, conversely, provides its members with a means to structured employment in
a formal entity while being able to work from home and gain access to greater income through
profit sharing. Researchers have claimed that social enterprise ventures operate from the logic of
empowerment rather than control and that empowerment approaches can be
embedded in a business model. The institutionalization of the four principles of Sarvodaya ideology
can be seen as an empowerment approach.
The four core principles of the Sarvodaya ideology:
(1) collective ownership;
(2) cooperation;
(3) self-reliance and
(4) profit sharing.

57

 Collective Ownership. Collective ownership as per the Gandhian ideology of Sarvodaya

advocates for the joint ownership of assets by a community and business was to be nothing
but a refined form of service.
Cooperation. Another principle of the Sarvodaya ideology is cooperation, and the need to
cooperate for the growth of the enterprise. The shared ownership, in turn, can foster, even
require, more cooperative behavior. Researchers taking a feminist approach argue that
cooperation is fundamental to the feminist organizing theme of cooperative enactment.

Self-Reliance. Self-reliance as per the Sarvodaya ideology advocates the use of manual
labor for production (as in a cottage industry) as an alternative to the Western concept of
mechanized production. It also stresses being self-sufficient.

Profit Sharing. The fourth principle of Sarvodaya advocates profit sharing. The likelihood of
receiving financial rewards (distributed profits) may have encouraged further entrepreneurial
behavior among the women.

58

Decentralisation
In two words -- decentralisation works. Lijjat, have never shied away from sharing power in all
activities. The Sarvodaya philosophy has always been their ideal.
All sister members of the institution are the owners. All profit or loss is shared. Only they have the
authority to decide the manner in which profit or loss should be apportioned among them.
The committee of 21 members manages the affairs of the institution. There are also Sanchalikas,
or supervisors, for each centre to look after the daily affairs of a centre. But the work of the
institution is such that each and every member can take any initiative or any decision.
At the same time, each and every member has the veto power. All decisions, major or minor, are
based on consensus among members. Any single member's objection can nullify a decision.
Another important fact about the institution is that no male can become a member and no male
employee whether working or honorary or on salary basis has voting rights.
Other than following this philosophy for our institutional set up, Lijjat have try to avoid the usual
'management nightmares.' For instance, production is carried out not 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 for quality and
packaging are done at every branch.
Certain activities, however, are centralised. For one, all raw materials are purchased in Mumbai
and then distributed to the 62 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, the final product would never be consistent in quality and Lijjat would have no
USP (unique selling proposition) in the market.
The other centralised process is the grinding of flour. We own two grinding mills, one in Vashi (Navi
Mumbai) and one in Nashik (in Maharashtra). Since the raw material is purchased in Mumbai,
grinding the flour at our own mills helps reduce costs.
Pricing of the products is also done at the head office. Lijjat papads all over India cost Rs 16.25 a
kg. This price factors in the cost of raw materials, transport, taxes, distributors commission, profit
percentage and so on.

59

Shared destiny
This cooperative organisation was started by seven women on a terrace of a building in Girgaum in
Mumbai. Although only one of those seven survives today, the organisation has not given up on the
ideals they started with.
Every member at Lijjat works with a sense of pride in her work. And this pride comes not only from
the fact that we produce a good quality product but also because we have stuck to our core values.
That, in turn has led to a sense of shared destiny in our institution. Every woman earns according
to the labour she puts in but the profits we make as a collective effort are shared equally.
In spirit, Lijjat a nation unto them, almost like a mini-India. They share the same values, are a
democratic set up and, like India, have members from every community, every religion, every
language within our fold. Sisters work together and dream together for a better tomorrow.

Delivering quality
Lijjat proudly claim 'consistently good quality' to be our USP. From the moment a new member
joins, she is repeatedly told to make quality her mantra. At the training session, bens are taught to
make the 'perfect' Lijjat papad. And every member has absorbed the concept totally.
It is evident in the fact that even without modern machines, every consumer of Lijjat papad,
wherever she is, gets the same consistent quality of papad. Because every ben rolls the papad to
the same specification and every lot of papad goes through testing.
If any ben becoming careless about quality, it is not tolerate. She is given warning, then the option
to take up any other work like packaging, testing, etc. and if she still displays a lack of concern for
quality, She is asked to leave the organisation.
Out of one kg dough, it must get at least 800 gm (accounting for loss due to moisture, etc),
otherwise they cut pay. They get papads for testing from all centres everyday and if they find any
deviation from their quality, for example, if the salt is less or more, etc, we immediately

60

intimate that particular centre to destroy the entire lot, even if amounts to a million rupees worth of
production.
Out of this strong belief in quality delivered at an affordable price comes their act of ignoring
competitors. Lots of companies selling papads have come and gone. They don't consider them,
they only do their own thing. They do not take into consideration what the competitors are doing.
They know that if their quality is good, consumers will buy. Their quality does not differ whether it is
for exports or for the local market. There is just one quality. And that's good quality.

61

Chapter-13
Research and Development
Lijjat was created in 1959 by seven illiterate but skilled women neighbors who all knew how to
make papad-based dishes. Living in the south of Mumbai the women decided to make and sell
papads for a local merchant.
At the beginning, the seven women loaned a small sum 80 rupees (Rs; less than US$1 in 1959)
which they used to buy the ingredients necessary for making the wafer. Their initial output was
four packets of papad.

To improve production, Lijjats founders increased their capacity by recruiting more members (up to
25 within three months) and purchasing more manufacturing and storage equipment including a
cupboard for storing utensils which they kept on a nearby terrace.
A year later, the papad makers acquired a stove with a cover to protect against rain in the
monsoon season and abandoned use of charcoal for drying papad (as it dirtied the wafer).
Instead, they used a cot suspended above a stove where the wafer could be dried.

As the number of members grew and production processes and product quality improved (it took
15 minutes to dry papad using the suspension method; the women, who then numbered over 100,
62

ensured only well-made flour was used; and, below par papads were not sold but locally distributed
freely), demand from customers increased.
Having overgrown the terraces capacity, which had doubled as a storage site for their products,
and with a positive reputation of the cooperatives quality goods spreading locally, Lijjat sought to
improve and modify its facilities and logistics further.
To this end, the flour, once kneaded, was taken home (rather than being stored on the terrace) by
teams of members who rolled, cooked and dried it overnight in their houses. Returning to work the
next morning, the women would have with them a product that could be weighed, packaged and
sold.
In subsequent years, special buses would be mobilized to transport Lijjats workers to and from
their homes thereby improving productivity and efficiency outcomes.
Another innovation early on in the cooperatives operations was to establish organizational
principles based on the ideas of Chhanganlal Karamshi Parekh (popularly known as
Chhaganbapa), a respected thinker and leader in the local community. Based on Mr.
Chhaganbapas advice, Lijjats members ensured that the organization would implement
professional business practices minimum standards for producing papad were implemented, for
instance while ensuring quality and self-sufficiency.
Lijjat would, as a result, not rely on charitable donations to finance its development.
In addition to these principles of professionalism and self-sufficiency, which proved to be key
concepts for Lijjats development, the cooperative entrenched an ethos of equality and interdependence.
Lijjat subsequently developed three core principles: mutual affection and concern (employees all
have an equal status); devotion (the workplace is treated not just as a place of employment but
also one of reverence); and, sarvodaya or collective ownership (also called trusteeship, a central
idea of the historical Indian leader Mahatma Gandhi).

63

Indeed, each member at Lijjat considered an equal and a co-owner of the cooperative whose
opinions contribute to all business decisions (no regard is given to a members social status or
religious persuasion) is affectionately referred to within the organization as sister.
Each sister (who receives 15 days of training when she joins Lijjat and has to be over 18 years old)
works approximately six hours a day and receives an average monthly wage called vanai of
between Rs. 2,000 and Rs. 3,000 (approximately US$ 35 and US$ 53). Extra vanai is paid on the
occasion of an Indian cultural festival.
Although the sisters in each branch share the losses and profits among themselves, the system
has ensured a steady income for its members (that can support a woman and her household) with
the additional benefit of filling members with pride and a sense of financial self-sufficiency.
Last but not least, a key element of the organizations development was to ensure an all-woman
membership. The only male workers at Lijjat are employed on a contractual basis for specialized
roles.
Paying homage to papads manufacturing tradition, the cooperative operates a manual production
line (the wafers are still hand-rolled and dried within members homes, thereby ensuring
employment for its members and keeping overheads low) that functions along the lines of a cottage
industry.
Despite some early setbacks (attempts had failed to expand the business model to other cities
such as Malad (1961), in Mumbai, and Sangli (1966), in Maharashtra), annual sales of papad in
this period, as well as membership in Lijjat (approximately 300 sisters at this time), continued to
grow.
With increasing but unsteady progress in the 1960s (the first Lijjat branch outside Maharashtra was
established in 1968), Lijjat sought to formalize its operations via registration as a society. This
recognition, which occurred in 1966, was a milestone for the cooperative as it paved the way for
Lijjat to receive favorable financing (including low interest bank loans and reduced sales taxes)
from a number of institutions, including the Bank of India.
In the same period, the organization successfully passed an official inspection of its operations and
adopted its first written constitution.

64

By 2013, Lijjat had developed three main divisions of labor. Processing units begin kneading dough
very early in the morning before it is rolled into papad; packaging teams arrange the previously
made papads into packets and boxes; and, distribution sections receive the boxes and transfer
them to distributors around the country and to the rest of the world. In the same year, the
cooperative was a major enterprise with a central managing committee based in Mumbai.
In addition, Lijjat ran a number of operations across India (both in rural and urban areas) and the
neighboring region some of the cooperatives raw materials (such as dal or asofoetida, a
perennial herb) are procured from other countries including the Republic of the Union of Myanmar.
The cooperative has managed 35 divisions which work autonomously (except for the procurement
division, which is centralized so as to ensure consistency in standards for raw materials sent to
each branch) but with uniform guidelines for employees and for production standards. These
divisions produce a variety of goods which, apart from papad, include spices, flour, chapatti
(unleavened, flat bread), soaps and washing detergents

65

Chapter-14
Research Methodology
HYPOTHESES
Ho: There is no significant impact on women empowerment through Shri Mahila Griha Udyog Lijjat
Papad.
H1: There is a significant impact on women empowerment through Shri Mahila Griha Udyog Lijjat
Papad.

METHODOLOGY
To define any research problem and give a suitable solution for the problem, a sound research plan
is inevitable. Research methodology underlines the various steps involved by the researcher in
systematically solving the problem with the objective of determining various facts.
Methods of Data Collection used for study:
1. Primary Data
2. Secondary Data
The primary data were collected from the member sisters of Shri Mahila Griha Udyog Lijjat Papad
of Bhiwandi branch.
From this branch around 50 member sisters responses have been taken for the study. A well
structured questionnaire was prepared with the help of guidance and officials of Shri Mahila Griha
Udyog Lijjat Papad.
Field survey technique was adopted to collect first hand information from women members.
Women empowerment is measured on three factors i.e. psychological, social and economical.
Primary data is collected through questionnaires, direct interview and telephone contacts. The
respondents were approached personally and were requested to fill up the questionnaire.

66

The primary data for this study was collected in September 2014.
Research instrument
The instruments adopted for the primary data collection is through QUESTIONNAIRE.
The Secondary Data were collected from: Lijjat Patrika,
Leading Journals,
Standard text books and
Internet Sites were also referred to obtain pertinent literature.
For analyzing the data, the following statistical methods were used: Percentage
Average
t-test (dependent variable)
Sampling unit
Sampling unit is the female employee.
Sampling size was selected based upon simple random sampling. For the purpose of study 50
samples are taken from Bhiwandi.
Sampling area: Bhiwandi.
Period of the study: 01st September, 2014 to 16th September, 2014.

67

 Observation:The Normal Everyday Procedure:1. The first step of the Papad-Process as they call is, is to roll out the dough into circular
papads.

2. After rolling out the papads, the women stack them up so as to avoid excess oil being
absorbed.

68

3. The papads are then weighed and inspected by the centers lady-incharge so as to ensure
that the quantity and quality of Lijjat Papad products are preserved.

4. After the entire process is over, the women seal 15 papads per pack stack them up either for
the purpose of export or sale.

69

Chapter-15
Data Analysis & Interpretation
DATA ANALYSIS:
A comprehensive summary of primary data is analysed to study the economic empowerment of
women through psychological, social and economical factors. The quantitative analysis is
presented below:
Q.1. What kind of employment you have with Lijjat Papad Company.?
a) Internal employee
b) External employee

70

Kind of

No. of

Employment

Respondents

Kind of Employment

Internal

12

24

External

38

76

Total

50

100

Internal
12
24%
External
76%

The above table reveals that 76% of employees are external employees whereas only 12% of
respondent are internal employees.
The woman in Indian Society needs to manage their house hold chores and they prefer to work
from their home only. However there are some people who can manage to work entirely from office
became the internal employees.

Q.2. What is your job profile in company?

a)
b)
c)
d)
e)

Keeling dough
Rolling papad
Packing
Other
All

71

Job

No. of

Profile
Kneeling

Respondents

dough
Rolling
papad
Packaging
Others

41

82

Job Profile
50

41

40
30
20

9
0

18
0

All

Total

50

100

10
0

As per above table 82% are engaged in the activity of rolling papad due to flexibility of performing
the task at home in their leisure time. The women engage in packaging are one who does not have
space at their homes to perform the task of rolling and drying of papads. 18% of respondents are
involved in packaging process. None of the respondent is involved in activities of kneeling dough,
others and all.

Q. 3. What is your age?

a) 18-25
b) 25-35
c) 35-45
d) 45 & above

72

Age

No. of
Respondents

Age of Employees

%
50

18-25

yrs

18
40

25-35

18

yrs

36
30

35-45

15

yrs

30
20

18

45 yrs

15

and

16

50

100

10

above
Total

0
18-25 yrs

25-35 yrs

35-45 yrs 45 yrs and above

Age is one of the factor in knowing the importance and value of empowerment level among women
which is being classified above. The table indicates 36% and 30% of respondents are in the
category of 25 to 45 years; these are the women who have more responsibilities to fulfill as they
have family commitments. The young and un-married are 18% and 16% are above 45 years.

Q.4. What is your qualification?

a)
b)
c)
d)
e)

HSC
SSC
Less than SSC
Not gone to school
Others
73

Qualificatio

No. of

Qualification

n
SSC

Respondents
10

20

50

HSC

40

Not gone to
School
Less than
SSC
Others
Total

12

24

26

52

0
50

0
100

30

26

20

12

10

10

Most important feature in empowerment is education level of women which makes them confident
to face contingencies.
The above table clearly shows 24% have not gone to school and 52% have taken education up to
primary level followed by 20% upto secondary school certificate. They have not reached the
position of graduation and post graduation which is quiet alarming with respect to the sample size.
Education need is to be prioritized as it provides them an opportunity to earn which results in better
living conditions, good health and support to their families.

The marital status of respondents is classified in following which indicates level of responsibility.
Q. 5. What is your present Marital Status?
a) Single
74

b) Married
c) Divorcee
d) Widow

Marital
Status

No. of
Respondent

Marital Status

%
50

Single

12

40

Married

38

76

30

Divorce

20

Widow

10

10

Total

50

100

38

6
1

0
Single

Married

Divorce

5
Widow

The above table indicates 76% are married and have family commitments and 10% are widows.
These womens are working hard and making themselves self reliance, self-confident and selfdependent. Unmarried are 12% who are working to support their parents, while some have lost
their parents and have taken charge of family responsibilities and also to be self dependent.

The motivating factor for which respondents have taken job is classified in following.
Q. 6. How Lijjat Papad Company motivates you?
75

a) Support to family
b) Economically independent
c) Creativity
d) Social status & satisfaction
No. of
Respondent
s

Supports to
family

38

76

Economically
independent

Motivating
Factor

Motivating Factor
50
40

38

30

14

Creativity

Social status
& satisfaction

Total

50

100

20
10

76% of the sample size has taken employment to support family and 14% to become economically
independent. Creativity as motivational factor is given least importance of 4% besides 6% has
opted for social status and satisfaction as motivating factors. Some of the reasons for this type of
responses are that maximum numbers of respondents are financially and economically weak and
their foremost requirement is to satisfy the basic necessities, next comes social satisfaction and
creativity for them.

The institution aimed at promoting self-employment, dignity of labour and earning capacity of
women working from home. This has given advantage to women and this is being shown in next
76

table in the form of number of years for which they are associated with the organization. This
shows how far the organization has contributed towards women empowerment
Q. 7. From how many years you are working with Lijjat Papad Company?
a) 0-5 yrs
b) 5-10 yrs
c) 10-15 yrs
d) More than 15 yrs
No. of
working
years
0-5 years

No. of
Respondents

13

26

No. of working years

50
40
30

5-10 years
10-15 years

8
12

16
24

20

13

10

12

17

More than 15
years

17

34

Total

50

100

As per table mentioned above, 34% have worked with the organization for more than 15 years as
collective ownership was the main plank of the institution. 26% are new to the company they have
completed less than 5 years, while 40% have worked between 5-15 yrs.

Q.8. Does the company provide any Pick up and Drop facility to the external Employees?
77

a) Yes
b) No.

Pick up and
Drop facility

No. of
Respondents

Yes

48

96

No

Total

50

Pick & Drop facility

No
4%

Yes
48
96%

100

The above diagram indicates that the Lijjat Papad Company provides the pickup and drop facility
to almost all the employee. 96 % of the employee takes the benefit of transport facilities provided
by the company. The company has its own vehicles which have centralized pick up facilities for the
women who comes to locations and take the benefit of the transportation facilities.

Q.9. How you rank the working conditions of Lijjat Papad Company?
a) Excellent
78

b) Good
c) Normal
d) Poor

Working
Condition

Working Condition

No. of
Respondents

Excellent

36

72

40

Good

14

30

Normal

10

20

Poor

10

100

Total

50

50
36

Excellent

Good

5
Normal

2
Poor

The table and diagram mentioned above clearly states that 72% of the respondents quoted the
working condition of Lijjat Papad Company is Excellent. 14% & 10% feels that the working
condition is good & normal respectively. Only 4% of employees say that the working condition is
poor.

Q.10. Does the Lijjat Papad Company provides you the training?

79

a) Yes
b) No

No. of
Respondents

Yes

46

92

No

Training

Total

50

Training Facility
No
8%

Yes
46
92%

100

The above table and diagram state that training is provided by the Lijjat Papad Company to its
employees. 92% of the employees agreed upon that they have been provided with the simple
training that too by their peers. Only 8% of the employees are not being provided with any training.
As it is understand that the product is Papad which not requires any special training so the figures
are understandable.

Q. 11. Are you satisfied working with Lijjat Papad Company?

80

a) Yes
b) No

Satisfactio
n

No. of
Respondents

Yes

44

88

No

12

50

100

Total

Satisfaction
No
12%

Yes
88%

It can interpret from the above diagram, as it shows that 88% of people working with the Lijjat
Papad Company are well satisfied with their employment and responsibilities provided to them.
However there are approximate 12% of people are somewhere unhappy because of remuneration
and some other issues in working with the Lijjat Papad Company.

81

Q.12. Do you get any loans at concession rates from Lijjat Papad Company?
a) Yes
b) No

Loan at
concessio
n rate

No. of
Respondents

Yes

37

74

No

13

26

50

100

Total

Loan at concession rate

No
26%
Yes
74%

The above table and diagram clearly shows that the Lijjat Papad Company offers loans at
concessional rates to their employees, in cases of emergencies and requirements like education to
children, children marriage, health treatment etc.

82

Q.13. Does the company provide you any incentives for better performance?
a) Yes
b) No

Incentives
Received

No. of
Respondents

Yes

44

88

No

12

Total

50

Incentives Received

No
12%

Yes
88%

100

The table and diagram mentioned above states that Lijjat Company provide incentives for better
performance. It is important to give the incentive to employees as it motivates employees to give
their best. 88% of respondents say that they receive incentive whereas 12% denied.

83

Q.14. What kind of incentives do you get for better performance?

a) Bonus
b) Award
c) Medal
d) Extra Salary

No. of
Respondent
s

Bonus

42

84

40

Award

30

Extra Salary

12

20

Other

10

Reward

Rewards
50
42

Total

50

100

0
Bonus

Award

Extra Salary

0
Other

The above table and diagram shows the level and pattern of incentives provided to employees by
the Lijjat Papad Company. From the above data it is very clear that the organization provides
incentives for the better performance given by the employees. Company has very good incentive
structure which includes Bones, extra salary etc. Although the company has not included
recognition systems like Award and Medal.

84

Q.15. When do you receive salary?

a.
b.
c.
d.

Salary
period

Daily
Weekly
Fort Night
Monthly

Salary Time Lag

No. of
Respondents

Daily

50

100

40

Weekly

30

Fort Night

20

Monthly

10

50

100

Total

50

50

Daily

0
Weekly

Fort 0Night

0
Monthly

It is clear from above table and diagram that the salary is paid daily to the employees of the Lijjat
Papad Company. The wages paid is called Vanai. If on a particular day they remain absent then
the Vanai is not paid to them.

85

Chapter-16
Problems Faced By Lijjat Papad &Their Solution
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 meeting, the quality issue and modifications are also discussed. Currently there is a
problem of fake Lijjat papads being introduced in the market. In June 2001, three persons are
arrested in this connection in Bihar, but the threat exists in the global market also.
With increasing business and other advances, the need for information dissemination and
communication among member sisters at various branches has increased. The monthly regional
meeting, annual general meeting, and All-India convention of branches are held to keep the
members aware of organization 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.
1) Previously Detergent, along with all the other products of Lijjat was exempt from sales tax.
Recently the Government has passed a new provision, which does not include detergent in
the PCPI (Processed Cereals and Pulses Industties) list of products. Therefore, Shri Mahila
Griha Udyog Lijjat Papad is Libable to pay the Sales Tax for their Sasa Detergent Powder.
egotiation is currently being carried out with government to exempt this product from Sales
tax as well.
2) The rolled papads need to be dried for a certain number of hours. This entire process in
done in the bhaginis homes. Therefore in the monsoon when it rains it is difficult to dry the
papads outdoor. This now has to be indoors. The bhaginis stay in small houses and space
is a constraint hence fewer papads are produced during the monsoon season. This is the
reason that Lijjat does not export in monsoons. The solution adopted by Lijjat is to provide
extra money to the bhaginis during monsoons to purchase kerosene lamps to enable faster
drying of papads. Our suggestion is to hire an additional space during

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monsoon a central position near the depots, with kerosene lamps where the bhaginis can
come and dry their papads. This will lead to higher production which can be exported.

3) Another problem expressed by them is competition in sales of their detergents (Sasa) from
established brands like irma. We feel one of the reasons for this problem is lack of
advertising, as stated earlier, Lijjat spends only 0.2% of their total turnover equal to Rs. 60b
Lkhs on promotions. They need to increase their investment in advertising through electronic
media and print media, which will create greater awareness about their detergents and
increase sales. Also, currently they dont use direct selling to sell their products. They rely
mainly on word of word of mouth which has been successful for their papads but has not
worked so well for their other products like detergents. We feel they should adopt direct
selling as it involves low cost and it will definitely widen their reach and create more
awareness about their products.Lijjat currently exports through merchant exporters and
does not involve itself in direct exporting. We feel they can save on the margin that the
merchant exporters make, by appointing their own distributors in the main countries and this
will enable them to reduce cost and increase profit margin.

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Chapter-17
Review Of Literature
For collecting the data various references has been taken and few of them are listed below:
Malathi Ramanathan (2004): The author through the article Women and Empowerment, Shri
Mahila Griha Udyog Lijjat Papad, has made an attempt to study the rise and growth of an
organization, resulting from a group of womens practical step to get supplementary earning. It is
about empowerment at an organized cooperative level. The article concludes that the organization
was positive in its approach in promoting economic empowerment of women and was well
recognized. The article has made an attempt to answer the questions like, what are the reasons for
success and spread of Lijjat papad as a women oriented organization? and In what way have the
women of Lijjat papad contributed to bringing about a constructive change in their own lives and
that of the people in and around their orbit of work?

R.B.S. Verma, S. Verma, Nadeem Hasnain (2007):

The authors in the book titled Towards Empowering Indian Women, Mapping Specifics of Tasks in
Crucial Sectors, has highlighted the issues of empowering women which is classifieds into
Women, Masculinity and violence: Addressing old and new reforms, Survival, reproduction and
protection from lethal threats, Education: Issues in access, choice and substance, Women in
traditional Economic activities: Presence, Agency and Control, Space, voice and turbulence in the
newer sectors of economy. The above issue concludes to every action of the state affects women
and as long as it affects them adversely, women have to get together collectively and raise their
voice to fix the accountability of the state to act in their favour.

Harlod Welsch Earl Young (2009):

The authors have focused on a comparative analysis of male and female entrepreneurship along
selected
demographic, psychological and behavioral dimensions in the article Male and Female
Entrepreneurial Characteristics and Behaviours: A Profile of Similarities and Differences. The
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major findings of this study are that no difference exists in personality characteristics between male
and female entrepreneurs and it has several important implications such as, female entrepreneurs
do not necessarily view themselves as victims of their environment more so than male
entrepreneurs.
S. Subramanian (2010):
The author in the article Empowerment of Women through SHGs in Tirunelveli District, Tamil
Nadu- A
SWOT Analysis has identified strengths, weaknesses, opportunities and threats by conducting
SWOT analysis of SHGs. Field observation methods were used to identify observable physical
data. Moreover, group discussion with women who were involved in activities and group functions
were conducted to elicit the information in detail. The study reveals that capacity buildings exercise
taken up by the promoting agencies are not adequate to meet the need of SHGs members. They
lack proficiency in soft skills, technical skills and managerial skills. The article suggested that the
promoting agencies like government and non-government agencies can contribute effectively for
the success and sustainability of SHGs.

Paramashivaiah (2010):
The paper is the outcome of a research study and findings on the topic of A Study of Employee of
Empowerment: A sectoral analysis. The perceived level of empowerment in manufacturing and
service sector has been analysed. Empowerment is multifaceted and its essence cannot be
captured in a single concept. The dimension of empowerment as identified through pilot study
consist of ; trust, self esteem responsibility, leadership practices and decision making. It is found
that the perceived level of empowerment is better projected in the manufacturing sector than that of
service sectors. It is high time that public utility providers realize the ultimate beneficiaries of
empowerment.

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Prof. (Dr) Rahul Goyal (2011):

The author through the article Women Entrepreneur : A Step Forward has focused on the concept
of women entrepreneurs in India, their traits in business, the motivating factor and problems faced
by them when they set up and make some suggestions for future prospects for development of
women entrepreneurs. Women entrepreneurs represent a group of women who have broken away
from the beaten track and are exploring new avenues of economic participation. The study
concludes that attitude, support to family, creativity, social status, lack of
financial resources, competition are the hurdles in the way of success and the ultimate responsible
party for the expansion or contraction of any sector is the government of the country.
Arpita Sharma (2011):
The researcher through the article Women Empowerment: Milestones and Challenges, has
highlighted the challenges faced by women in the path of empowerment and the development
policies for women. The study concludes that India is committed to the cause of empowerment of
women, but the journey towards the progress is long and arduous. Policies to rise marriage age,
enhancement of education and employment opportunities will empower atleast in some respect.
The ultimate goal is to cause institutional and individual change that will
improve lives of women and girls everywhere.
Lalit Kumar Sharma (2011):
The author through the article Self Help Group As An Effective Strategy and Feasible Approach to
Empower Women in India, has highlighted the benefits of psychological, social and economical
factors accrued by women participating in SHGs and to explore the merits of SHGs as strategy and
approach to empower women in India. Empowerment is a process of awareness and capacity
building leading to greater participation, greater decision making power and control and
transformative action. The study concludes that women participation in SHG have created
tremendous impact upon the life pattern and style of poor women especially in rural areas and
empower them at various level not only as individual but also as member of family, community and
society as whole.

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Madhulata Anand (2011):

The author through the book Women Empowerment describes status and condition of women at
the outset and then makes elaborate on legal and social approach to women empowerment, social
problems of women, health and nutritional status of women, women labour and family structure,
labours-wage policies concerning women, educational human rights of women, educational system
and sexuality and ideology of women in the social context.
Dr.K.Someshwer Rao (2011):
The author has highlighted the future challenges to be faced by women and problems of
entrepreneurship in the article Problems of Rural Women Entrepreneurship in India. The study
has identified certain problems of rural women in business. The suggestion is that the state and
central governments have to initiate special programmes for the development of rural women
entrepreneurs in India.

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Chapter-18
Findings
The young and un-married women are very less in a sample of 69 which indicate lack of
awareness of empowerment in younger generation. Married and widows are more as they
have family commitments to be performed.
Many women are member sisters with the organization for long period of time as collective
ownership and flexibility in the job is the main foundation of the institution.
Education level is very low and as such it is the most important feather of empowerment hat.
An educated woman teach whole of the family and brings a revolutionary change in society.

More number of womens are engrossed in the activity of rolling papad as this can be
performed at home during their leisure time.

Support to family and economical independence is high as maximum numbers of

respondents are financially and economically weak and their requirement is to satisfy basic
necessities.
Change in psychological factors i.e., security, self satisfaction, self confidence are high
followed by self determination and the reason for this is the ideology of organization in
collective ownership. With earning capability women were able to develop positive attitude,
new ideas and ability to face challenges.
Change is seen in sense of responsibility followed by good recognition and participative
decision making. The reason is the confidence build up because of earning capability. Other
social factors are very low as these women belonged to the disadvantaged section of
society so the driving force is satisfying basic needs.
Income generation and contribution towards children education, health and marriage are
high when compare with other factors. The reason is earning ones bread and butter through
positive contribution of organization in empowerment of women. Savings, accumulation of
assets and liberation from debts are moderate as individual lives of women were
transformed by the new work ethics and promoted their self-confidence and
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taught them self reliance.

Chapter-19
Conclusion

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 selfconfident. 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. One would become a millionaire by setting up another Lijjat. If this aspect of Lijjats
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operations is not very good news for machine and money-driven corporate owned by tycoons, the
essential message that Lijjats 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 Lijjats 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 Lijjats 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
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
Womens empowerment is not a onetime affair but a continuous process. The development of Shri
Mahila Griha Udyog Lijjat Papad should be taken in broader framework of women empowerment.
The organization is responsible for empowering women by the way of promoting self reliance,
self-confident, self-dependent and educating them to realize their fundamental rights. The impetus
may be a particular issue arising out of experience, disadvantage or discrimination, or an aspiration
to do something to become self-dependent. Lijjat organization has taken a step in this direction in
both condition and position of women. Lijjat has made women financially stable to such an extent
that after taking their rightful share for their livelihood, they are contributing generously to societal
cause. Lijjat as a Trust is a service organization engage in serving poor and destitute and to
empower women for social development. India is committed to the cause of empowerment of
women. However, the journey towards progress is long and arduous.

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Chapter-20
Annexure
Questionnaire
1)What kind of employment you have with Lijjat Papad Company?
e. Internal employee
f. External employee
2) What is your job profile in company?
a. Keeling dough
b. Rolling papad
c. Packing
d. Other
e. All
3) What is your age?
a. 18-25
b. 25-35
c. 35-45
d. 45 & above
4) What is your qualification?
a. HSC
b. SSC
c. Less than SSC
d. Not gone to school
e. Others
5) What is your present Marital Status?
a. Single
b. Married
c. Divorce
d. Widow
6) How Lijjat Papad Company motivates?
a. Supports to family
b. Economically independent
c. Creativity
d. Social status & satisfaction.
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7) From how many years you are working with Lijjat Papad Company?
a. 0-5 Years
b. 5-10 years
c. 10-15 years
d. More than 15 years
8) Does the company provide pick up and drop facility to the external employee?
a. Yes
b. No
9) How is the working condition of Lijjat Papad Company?
a. Excellent
b. Good
c. Normal
d. Poor
10)Does the Lijjat Papad Company provide you the training?
a. Yes
b. No
11) Are you satisfied working with Lijjat Papad Company?
a. Yes
b. No
12)Do you get any loans at a concession rate from Lijjat Papad Company?
a. Yes
b. No
13)Does the company provide incentives for better performance?
a. Yes
b. No
14) What kind of incentives do you get for better performance?
a. Bonus
b. Award
c. Extra salary
d. Other

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15)When do you receive salary?

a. Daily
b. Weekly
c. Fort Night
d. Monthly

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Bibliography
Information from the Lijjat prospectus- Lijjat Patrika
Visited Lijjats office
Personal interview with female employee
Employee feedback on questionnaire

Webliography:
www.lijjat.com

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