Shri Mahila Griha Udyog Lijjat Papad A cooperative established in 1959.
1. Produced and sold one of the simplest product,famous amongst the Indian households, Papad.2. Established by 7 ‘Women’3. Started with a mere capital of Rs. 80on the terrace of a building in Girgaum,South Bombay.
The Entrepreneurs• Founding members: Jaswantiben Jamnadas Popat, Parvatiben Ramdas Thodani, Ujamben Narandas Kundalia, Banuben. N. Tanna, Laguben Amritlar Gokani, Jayaben V. Vithalani• Mentored by Chaganlal Karamsi Parekh• Guided by Shri. Dattanibapa
Current Leadership: Jyoti Naik (President)Associated since 1971, started rolling papadDeputed to packaging sectionBy 1973, started managing inventorySanchalika in 1981VP in 1989Then President: Earning equivalent to 30 kg of rolled papad in a day attesting to the organizational values
Objectives of Lijjat Maximize employment opportunities for women. To get the work for the society. To get mutual understanding, self service and saving habit among the women. To increase the dealings power of women members.
ITS VALUESLijjat believes in the philosophy of sarvodayaand collective ownership.SMGULP never accepts charity or grants.SMGULP is like a familySMGULP is like a revered place of worship.
SMGULP is a combination of three concepts: The Business concept The Family concept The Devotion Concept
THE BUSINESS CONCEPT OPPORTUNITY VALUEIDENTIFICATION CREATION
Opportunity Identification• The major thrust: An existing market demand Skills needed could be found with any Indian lady Raw material can be procured from the closest outlet• Differentiating insights brought by venture: Business can be made sustainable/profitable without high initial investment Non-acceptance of any grant/aid/donation even if loss is incurred Quality consciousness in any operation
Opportunity Identification• Venture grew as a cooperative business• 1962: Products were registered as “Lijjat” while group was named “Sri Mahila Griha Udyog”• Basic reasons for fast growth: Only for women venture which provided employment Women need not move away from home to join it Sense of ownership given to women No special skills needed to be successfully carry out operation A cooperative venture “for women, by women, of women”
ROADBLOCKS• Not everything went smooth: Production had to be halted due to Mumbai’s moist climate• Such roadblocks made founding members better prepared: they solved the problem by buying a cot and a stove As members grew & place became constraint distribute kneaded flour to members to prepare papad at home
VALUE CREATION• Monetary value creation: Year 1: Rs. 6196 Year 3: Rs. 1.82 lakhs Current figures: Rs. 300 crores (Rs. 12 crores export) Annual profit: Rs. 7 crores approx (2004 figures)• Something beyond monetary contribution… Way to integrate women with the income generation process at such a mass level Honing of skills and capabilities Reducing the patriarchal biases Unlike prior attempts, women as driver of their empowerment
EMPOWERING WOMEN• Something beyond monetary contribution…• Employment opportunities without leaving homes, flexible schedules• Transformation of life of around over forty thousand women through its unique work ethics Linked social advancement to women empowerment Emphasis on having women from disadvantaged section Preventing expansion of inherent gap between rich/poor Average monthly salary of its members: above Rs. 3000/-
SOCIAL RESPONSIBILITY• Since venture was based on sound principles, members contributed in many activities as: Increasing availability of health care for their families Providing scholarships to their children Cooperating in building homes of each otherINDIRECT IMPACT: Lijjat Products: Good quality affordable for masses Enhanced social/cultural harmony beyond work-place Active contribution to health, education & social service
SOCIAL RESPONSIBILITY• Extending wealth acquired to social cause; few examples: 1979: First ever tarred (pucca) road built with help of Lijjat Educational and Hobby centers set up to teach skills as: typing, cooking, sewing, knitting and toy making Rehabilitation work for earthquake affected in Chincholi (Jogan): Financed construction of 50 houses for them Again, provided Rs. 50 lakhs aid for Bhuj earthquake affected people
Assessing Impact & Effectiveness…• Positions itself as: “A symbol of women’s strength”• Created employment opportunities for over 40000 women in last 49 years• Not only employment, gave them opportunity to transform their way to live• Equality and justice promoted by Profit-Contribution schemes
Assessing Impact & Effectiveness…• Sustained for such a long period as a profitable venture itself proves a point for itself• The most quantifiable assessor: Total sales of over Rs. 3 Bn• Organic growth (slow but steady) in a holistic way: No. of employees Achieving economies of scale (without blind automation) Achieved economies of scope Vertical integration of various process
Assessing Impact & Effectiveness…• Economies of scale (without following blind automation): Less emphasis on automation of processes Rather, achieved it through increased involvement of women members Allowed members to work from their own place Expansion in various cities/states: 67 branches and 35 divisions
Assessing Impact & Effectiveness…• Economies of scope (diversification): Lijjat started diversification in fields related to papad making The products needed similar raw material or skills The existing supply chain was used very efficiently Khakhra, spices, wadi, wheat flour, bakery items are few examples Major step to diversify in 1988: Introduction of Sasa Soap Again, identified opportunity: Soap market in India, then rose by 15% YoY
Assessing Impact & Effectiveness…• Vertical Integration: Large scale production Make rather than Buy Various processes like: Flour mills Print division Polypropylene packing were undertaken Aimed at supporting production processes without incurring extra cost
Assessing Impact & Effectiveness…• Attracted international trade opportunities: Late 1980’s: Started exports 1996: VP of Uganda visited with a view to setup such a venture Over Rs. 12 crores of exports• A few set backs at various times: Initial attempts to expand by opening branches went unsuccessful Ownership issues cropped up Issue of duplicate players Levying of taxes of Sasa Detergent’s sale
Assessing Impact & Effectiveness…• But, overall a venture that created high positive social impact• Acknowledgement by various authorities: “Best Village Industries Institution“: from KVIC for period 1998-99 to 2000-01 Business Woman of the year in 2002 PHDCCI Brand Equity Award in 2005