Lijjat 1

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. 80 on 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 VALUES

Lijjat believes in the philosophy of sarvodayaand collective ownership.

SMGULP never accepts charity or grants.

SMGULP is like a family

SMGULP 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

OPPORTUNITYIDENTIFICATION

VALUE CREATION

Opportunity Identification• The major thrust:

An existing market demandSkills needed could be found with any Indian ladyRaw material can be procured from the closest outlet

• Differentiating insights brought by venture:Business can be made sustainable/profitable without high

initial investmentNon-acceptance of any grant/aid/donation even if loss is

incurredQuality 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 stoveAs members grew & place became constraint distribute

kneaded flour to members to prepare papad at home

VALUE CREATION• Monetary value creation:

Year 1: Rs. 6196Year 3: Rs. 1.82 lakhsCurrent 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

THE FAMILY CONCEPT

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 familiesProviding scholarships to their childrenCooperating in building homes of each other

INDIRECT IMPACT:Lijjat Products: Good quality affordable for massesEnhanced social/cultural harmony beyond work-placeActive 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 LijjatEducational and Hobby centers set up to teach skills as:

typing, cooking, sewing, knitting and toy makingRehabilitation work for earthquake affected in Chincholi

(Jogan): Financed construction of 50 houses for themAgain, 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

PRESENT SCENARIO


• 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 employeesAchieving economies of scale (without blind automation)Achieved economies of scopeVertical integration of various process


• Economies of scale (without following blind automation):Less emphasis on automation of processesRather, achieved it through increased involvement of

women membersAllowed members to work from their own placeExpansion in various cities/states: 67 branches and 35

divisions


• Economies of scope (diversification):Lijjat started diversification in fields related to papad

makingThe products needed similar raw material or skillsThe existing supply chain was used very efficientlyKhakhra, spices, wadi, wheat flour, bakery items are few

examplesMajor step to diversify in 1988: Introduction of Sasa SoapAgain, identified opportunity: Soap market in India, then

rose by 15% YoY


• Vertical Integration:Large scale production Make rather than BuyVarious processes like:

Flour mills Print division Polypropylene packing

were undertakenAimed at supporting production processes without

incurring extra cost


• Attracted international trade opportunities:Late 1980’s: Started exports1996: VP of Uganda visited with a view to setup such a

ventureOver Rs. 12 crores of exports

• A few set backs at various times: Initial attempts to expand by opening branches went

unsuccessfulOwnership issues cropped up Issue of duplicate playersLevying of taxes of Sasa Detergent’s sale


• 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 2000-01Business Woman of the year in 2002PHDCCI Brand Equity Award in 2005

Workers

Assistant Manager

Manager

Member-Sisters

Lijjat 1

Lifestyle

employment women

empowering women

women empowerment emphasis

crores rs

founding members

cooperative venture

lijjat products

cooperative business