Case - Lijjat Papad- About the organization
1.Owned by Shri Mahila Griha Udyog Lijjat Papad
2.Based on the Gandhian concept of trusteeship or Sarvodaya
3.In 1966, registered under Bombay Public Trust Act, 1950 &
Societies Registration Act, 1860.
4.A Village Industry Unit under ‘Processing of cereals & pulses
industry’ group.
5.Objective – Provide employment to the ladies to
enable them to earn a decent & dignified
livelihood
6.Profits/ Losses are borne by all the 42,000 sister
members collectively.
7.Total turnover – Rs. 315 crores, inclusive of Rs.
12 crores of Exports
8.Competitors – MDH, Bikaner, Saktibhog
Organizational Structure
1.A Central Managing Committee
2.Branches are headed by a Sanchalika
3.Management Committee’s approval required for
starting a new project or activity.
4.Divisions – Marketing, Advertising, Sales
Promotion & Exports
SMGULP – Management Committee
President :
Smt. Jyotiben J. Naik
Vice President :
Smt. Kamalben D. Dhandore
Secretaries:
Smt. Sunandaben R. Belnekar
Smt. Gangavatiben H. Naik
Treasurers :
Smt. Mansiben S. Sawant
Smt. Kshamaben M. Suta
Lijjat Philosophy
1.Concept of Business.
2.The concept of Family & Devotion
3.Never accepts donation, charity, gift or grant from any
quarter.
4.Donation for the affected families of Tsunami (25 lakhs
to CM Relief Fund), Earthquakes in Latur and Bhujpur
were provided from the contribution of sister members.
AWARD & ACCOLADES
1.Best Village Industry 1998-99, 2000-01 & 2003
2.ET Award of “Businesswomen of the Year”
2001-02 for Corporate Excellence
3.Featured on BBC World in the programme
“Business Bizarre”
4.A Six Sigma Company.
Product Range
Besides Lijjat Papad,
Lijjat Bakery products,
Lijjat Chapatis
Lijjat Gehu Atta,
Lijjat Khakra.
Sasa Detergent powder and cake
Grounded spices, Black Pepper Powder, Wadi
Production
1.63 branches, 40 divisions all over India;16 Branches in
Mumbai & its suburbs.
2.Head office at Bandra
3.Raw material purchasing is centralized to keep uniformity
in tastes
4.Own laboratory in Mumbai to test & code the final product.
5.Compulsory for each sister member to roll 3 kgs of papad
Everyday.
6.Branch Office normally operates from 5:00 am to 10:30
am
7.On an average, papad rolling members can roll 1.5 to 2
kg of papad per hour
8.Production costs borne by the papad rollers.
9.Intentionally no introduction of any kind of technology for
production of papads
10.30-35% of production is exported to UK, US, Japan,
Europe, Australia, Middle East etc.
Marketing & Distribution
1.Each branch markets its own products in the
allotted area
2.Centralized Marketing Office
3.Advertising in vernacular newspapers, television
& radio
4.It attends the trade fairs which are organized/
promoted by the KVIc.
5.Wide network of Dealers & Distributors & excellent Goodwill
6.Upfront deposit: 25,000 to 2,50,000
7.Dealers Commission – 7%
8.Retailers Margin
-Rs. 2.25 per 200 grams sold at Rs.14
-Rs. 26 per 2.5 Kg. sold at Rs. 150
Finance
1.Accounting year from 1st April to 31st March
2.Sales for papad – 11.81 crores (Audit report 2003-2004)
3.Purchase of Raw Material exempt from tax
4.Papad as a product is exempt from Sales Tax.
5.It gets an interest subsidy from the KVIC
6.The organization seeks financial assistance from Bank of
India, Bank of Baroda, Dena Bank and KVIC.
Human Resource
1.Workforce – 42000 women
2.Organization is by the women, of the women &
for the women
3.Sign the Pledge Form to become a member.
4.Interaction through Area Meetings, AGM’s & All
India Convention
5.Woman of any caste, creed, colour, who can
render physical work can become a sister member
6.Minimum age should be 18 years
7.Training for new members is on-the-job for 15
days
8.Allotment of work decided by sister members by
Consensus
9.payment, called ‘vanai’ made straightaway; average
monthly ‘vanai’ for each sister member is Rs-2000 to
Rs.3000 for roughly 6 hours of work.
10.For 1 kg. Papad rolled, Rs.70/- paid as ‘vanai’
11.During Festivals & special occasions, ‘extra vanai’ is
paid to the sisters
Welfare facilities fir the SISTERS
1.Minibuses to come to the branches everyday
2.Preventive Health Care programme
3.Compulsory primary education for all sister members
4.Scholarships or Grants to the dependents of the sister
members
5.No Retirement Benefits
Corporate Social Responsibility
1.Give - back policy
2.Rehabilitation of Chincholi, Latur & Bhujpur
3.Draught Relief Work
4.Participation in Asha Dhan activities
5.Tsunami Donation
Lijjat – Critical Success Factors
1.Merging of Ownership with Membership
2.Consistent quality of the product
3.Informal Work Environment
4.Make Leaders out of ordinary women
Threats to Lijjat
1.Fake Lijjat papads in market.
2.Fast growth has caused few state governments
to withdraw tax exemptions
Future Plans
1.Expansion of production facilities and establishment of
new facilities to cope with the increasing demand.
2.Diversification will be looked at, if:
- proposal for the same is put forth by a sister
member or well wishers
- the idea can generate jobs on a large scale
