A PROJECT REPORT ON EVOLUTION OF WARANA “BEYOND THE LUCKY GOLD STAR GROUP” Project Submitted to the Institute of Agribusiness Management in partial fulfillment of the requirements for the award of the Degree of Master of Business Administration (Agribusiness) 2008-09 Submitted by: Dange Vishwesh Shashikant 04-0390-2007 INSTITUTE OF AGRIBUSINESS MANAGEMENT NAVSARI AGRICULTURAL UNIVERSITY NAVSARI 1 | Page
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A
PROJECT REPORT
ON
EVOLUTION OF WARANA“BEYOND THE LUCKY GOLD
STAR GROUP”
Project Submitted to the Institute of Agribusiness Management in partial fulfillment of the requirements for the award of the Degree of
Master of Business Administration(Agribusiness)
2008-09
Submitted by:
Dange Vishwesh Shashikant04-0390-2007
INSTITUTE OF AGRIBUSINESS MANAGEMENTNAVSARI AGRICULTURAL UNIVERSITY
NAVSARI
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Declaration by Student
I hereby declare that the project entitled “Evolution of Warana –
Beyond The Lucky Gold Star Group” submitted for the M.B.A.
(Agribusiness) Degree is my original work and the dissertation has not
formed the basis for the award of any degree, associate ship, fellowship or
any other similar titles.
Place: Vishwesh Shashikant Dange
Date:
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INSTITUTE OF AGRIBUSINESS MANAGEMENT NAVSARI AGRICULTURAL UNIVERSITY
NAVSARI-396 450
CERTIFICATE
This is to certify that the project entitled “Evolution of Warana – Beyond
The Lucky Gold Star Group” is the bonafide research work carried out
by Dange Vishwesh Shashikant student of M.B.A.(Agribusiness) during
the year 2008 -2009, in partial fulfillment of the requirements for the award
of the Degree of Master of Business Administration(Agribusiness) under
my guidance and supervision and that the project has not formed the
basis for the award previously of any degree, diploma, associateship,
fellowship or any other similar title.
Place: Dr. Ruchira Shukla
Date:
Approved
Dean
IABM
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ORGANIZATIONS CERTIFICATE
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ACKNO WLEDGEMENT
It is indeed a pleasure to acknowledge the contribution of all those
who have helped me during the project work. It was a most rewarding
experience to work in “WARANA BAZAAR and WARANA BANK”.
I am very thankful to our dean Dr. R. R. Shah and Prof Samar K.
Datta, Chairman, Center for Management in Agriculture, Indian Institute of
Management, Ahmedabad for giving me this opportunity. I am deeply
indebted to Dr. Ruchira Shukla as a Project Guide and Dr. Alpesh Leua
whose valuable guidance helped me a lot at all stages of my project.
I would also take the opportunity to express my sincere thanks to
the management of Warana Bazaar and Warana Bank and specially Mr.
Sharad A. Mahajan (General Manager, Warana Bazar), Mr. Jayant Sopal
(Purchase Manager, Warana Bazar), Mr. Mahesh Auti (Sales Manager,
Warana Bazar), Mr. T. B. Chavan (Accounts Manager, Warana Bazar),
Mr. T. M. Dhere (Labour Officer, Warana Bazar) and Mr. S. K. Shinde
(Asst. General Manager, Admin., Warana Bank) for their kind cooperation
throughout my study.
Last but not the least I would also like to express my deep gratitude
towards all the faculty members, my parents, my beloved friends and all
those for their generous help during this study directly or indirectly.
Place:
Date: Vishwesh Shashikant Dange
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I Dedicate this Project to my
Beloved Parents and Friends.
Whose love and blessings
have been a source of
inspiration to me. I owe them for
what I am today and even hope
to be in future. I will never
forget the help, motivation,
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support and inspiration given by
them.
Vishwesh
CONTENTS
Sr. No. Particulars Page No.1) Executive Summary 102) Introduction to Warana Co-operative Complex 123) Members’ Activities in Warana Co-op. Complex 154) Industry and Organization Profile 18
a. Profile of Co-operative Consumer Stores in
Indian Retail Industry19
b. Profile of Warana Bazaar 21c. Profile of Co-operative Banks in Indian banking
Industry38
d. Profile of Warana Bank 415) The Project 506) Research Methodology 537) Data Presentation and Analysis 568) Findings, Recommendations and Conclusion 1039) Bibliography 10810) Appendix 109
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LIST OF TABLES
Table No. Title Page No.1. Development of Warana Bazaar 232. Board of Directors 273. Area of Operation 284. Activities for Members 305. Benefits to Staff besides salary 316. Consultancy to Bazaars 337. Franchisees of Warana Bazaar 378. General Information of Warana Bank 449. Distribution of Profits by Warana Bank 4610. Manpower involvement in Warana Bazaar 5711. Members of Warana Bazaar 5712. Members Share Capital in Warana Bazaar 5913. Total share Capital of Warana Bazaar 5914. Working Results of Warana Bazaar 6115. Financial Assistance from government 6216. Total Sales of Warana Bazaar 6317. Total Income of Warana Bazaar 6518. Performance Highlights of Warana Bank 6619. Loans Sanctioned by Warana Bank 6720. Profit Earned by Warana Bank 6821. Working Capital requirement of Warana Bank 6922. Deposits 7023. Frequency Table for Population 9624. Frequency Table for Age Group 9725. Qualification of Respondents 9826. Monthly Expenses 9927. Benefits from Warana Bazaar 10028. Display of Goods 10129. Product Mix Satisfaction 102
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LIST OF FIGURES
Figure No. Title Page No.1. Organizational Chart 252. Members of Warana Bazaar 583. Total share Capital of Warana Bazaar 604. Total Sales of Warana Bazaar 645. Total Income of Warana Bazaar 656. Loans Sanctioned by Warana Bank 677. Profit Earned by Warana Bank 688. Working Capital requirement of Warana Bank 699. Deposits 7010. Frequency Table for Population 9611. Frequency Table for Age Group 9712. Qualification of Respondents 9813. Monthly purchases from Warana Bazaar 9914. Benefits perceived from Warana Bazaar 10015. Proper Display of Goods 10116. Product Mix Satisfaction 102
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EXECUTIVE SUMMAR Y
The project entitled EVOLUTION OF WARANA “BEYOND THE LUCKY
GOLD STAR GROUP” is the project done on the “WARANA BAZAAR”
and “WARANA BANK” which are the part of the well recognized “Warana
Co-operative Complex” which is located in Warananagar, Kolhapur.
The core objective of this endeavour is to study the development of these
two organizations i.e. the Warana Bazaar and the Warana Bank starting
from the Warana Co-operative Sugar Factory and which has now departed
from the sugar factory to other organizations like the dairy, bank, bazaar
and the poultry which is beyond the development of South Korea’s giant
Lucky Goldstar group.
Paul Milgrom and John Roberts, in their celebrated book titled
‘Economics, Organization and Management’1, enunciate a classic case of
South Korea’s giant Lucky Goldstar group to depict the extent to which
firms can profitably take over the operations of their suppliers and
industrial customers (alternatively called as backward and forward
linkages) and also simultaneously expand their activity spectrum. The
ultimate success story of Lucky Goldstar chaebol, profitably engaged in a
wide range of activities, is encapsulated in the following citation in the
words of Koo Cha-Kyung, the son of the Lucky Goldstar founder:
“My father and I started a cosmetic cream factory in the late 1940s. At that
time, no company could supply us with plastic caps of adequate quality for
cream jars, so we had to start a plastic business. Plastic caps alone were
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not sufficient to run the plastic-molding plant, so we added combs,
toothbrushes and soapboxes. This plastic business also led us to
manufacture electric fan blades and telephone cases, which in turn led us
to manufacture electrical and electronics products and
telecommunications equipment. The plastic business also took us into oil
refining which needed a tanker-shipping company. The oil-refining
company alone was paying an insurance premium amounting to more
than half the total revenue of the largest insurance company in Korea.
Thus, an insurance company was started. This natural step-by step
evolution through related businesses resulted in Lucky Goldstar group as
we see it today. For the future, we will base our growth primarily on
chemicals, energy and electronics. Our chemical business will continue to
expand toward fin chemical and genetic engineering while the electronics
business will grow in the direction of semiconductors manufacturing, fiber
optic telecommunications and eventually, satellite telecommunications.
(Milgrom & Roberts, ibid, pp. 543).
Also the objective of the study is to study the role of leadership i.e. the role
of Shri. Tatyasaheb Kore and his associates who were the establishment
pillars of Warana Co-operative Complex, in starting up of Warana Bazaar
and Warana Bank and its progress. The competitive advantages of both
these organizations are identified over their rivals which help these
organizations in generating higher margins by increasing sales and to
retain their customers. SWOT analysis of Warana Bazaar and Warana
Bank i.e. the strengths, weaknesses, opportunities and threats are carried
out also showing their future perspectives. A customer response towards
the Warana Bazaar is studied to know the level of satisfaction of
customers.
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INTRODUCTION TO WARANA CO-OPERATIVE COMPLEX
Warana is a well-developed rural area located 30 kilometers northwest of
the city of Kolhapur, in one of the richest states of India, Maharashtra.
Much of Warana’s success is due to the presence of a strong co-operative
movement, the Warana Group of Cooperatives (WGC). About 50,000
farmers live in 100 villages spread in the 25,000-sq. kilometer area
covered by the co-operative. The main economic activity is sugar cane
growing and processing.
The name, WARANANAGAR is derived from the river WARANA flowing
from Kolhapur and Sangli districts in western Maharashtra. Sixty years
back Warana was a barren land and has emerged on the world map as a
model for all-round development of the region through continuous efforts
of all concerned under the able leadership of Late Sahakarmaharshi Shri.
Tatyasaheb Kore, a man with great vision and commitment towards the
upliftment of the poor section of society.
Shree Warana Co-operative sugar factory was founded in the year 1956.
Warana Co-operative sugar factory has best proved many times among all
Co-operative sugar factories in the country. It has proved to be a nucleus
for the multi-faceted development of the region and for bringing about the
upliftment of the masses. In other words, we can say that without knowing
the definition of marketing (creation and delivery of standard of living) Late
Sahakarmaharshi Tatyasaheb Kore has done such a Herculean task
within a short span of 60 years.
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Warana Co-operative Sugar factory is the mother institute of all the
industrial and Co-operative units like Warana dairy, Co-operative bank,
Co-operative bazaar as well as educational units like School, ITI, College,
Engineering College, Military School, Pharmacy College and Cultural units
like Warana children’s orchestra and social units like Shree Warana
Bhagini Mandal, Warana Mahila Credit Society, Lijjat Papad Centre etc.
WARANA is eminently, a unique name that stands as forerunner in the co-
operative movement in India. The name WARANA sounds suitable
wherever there is a mention of co-operative movement. The uninitiated
may be amazed by the way barren land has been converted into a green
valley. The green valley with its smiling face welcomes the whole nation
for its exemplary services. "Love at first Sight" can be rightly applied to this
land of integrated rural development. The beauty of this land makes music
which can penetrate and lilt the most inaudible ears and a riot of natural
colours to the most unaccustomed eyes and it can even make even the
unlettered to construct the duets. The activities in this valley can enliven
the most passive.
There is no name parallel to WARANA except perhaps the WARANA
RIVER, which flows parallel to WARANA. Warana culture has set an
example and is making wonders today.
WARANA-
• A successful name in the cooperative movement;
• A successful name in the operation flood;
• A successful name in the agricultural field;
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• A successful name in the sugar lobby;
• A successful name in the education field;
• A successful name in the banking field;
• A successful name in the consumer services; industries; and
• A successful name by itself!
All this did not happen by chance or through any sort of magic. An
incredible man set on an arduous mission with a singular dream of
achieving all these incredible things. The man who sacrificed his joys,
happiness and stood bold, to do the best. This man like a sprint achieved
the success in all the fields. His words were Godly words to his followers.
With an undaunted strong belief along with his team when he struck, the
whole barren valley that was filled with dacoits and turned it into a
prosperous and polite land.
Who was this incredible man? Who was this motivator? Who was this
sprint? He was one and only one Late Vishwanath Kore alias Tatyasaheb
Kore.
Tatyasaheb Kore who did a magnificent miracle in the land of Warana,
born on17th October 1914, he was the son of a farmer in a small village
Kodoli. Young Vishwanath Kore had to overcome several hurdles due to
the poverty of his family. Besides poverty the sad demise of his parents
might have crunched him a great deal.
But young Vishwanath did not flinch an inch. Being the eldest in his family
he took all the responsibilities on his shoulder and through his hard work
he brought up the whole family through difficult times. By entering the local
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village co-operative society in 1935 he started his social service. He
actively participated in Quit India Movement of 1942. He was actively
associated with underground movement of Late "Yashwantrao.B. Chavan,
1st Former Dy. Prime Minister of India. Due to his social services he was
unanimously elected as President of Kodoli Municipality in 1940.
He plunged into a severe action when an unprecedented depression in
1951 literally ruined the farmers of this area and they had to burn out their
sugar canes rather than making jaggery and face the prospect of selling it
at throw away prices. This shocking incident made him to set up a modern
co-operative sugar factory in the barren land WARANA situated next to
Kodoli village. The success of this sugar factory doubled his enthusiasm
and lead to the overall development of Warana Complex. Today
Warananagar is a place of many facets and fragrances and its success
story started unfolding with every sunrise. Warana is making stupendous
growth and is expected to make miracles in the days to come.
Members’ Activities in Warana Co-Operative Complex:
Members’ involvement and empowerment in Warana Cooperative
Complex:
Warana Cooperative Complex which has carved a niche in the global co-
operative landscape is mainly attributed to the ceaseless efforts of great
architect and visionary Late Shri. Tatyasaheb Kore and the involvement of
farmer members that has led to their empowerment. The successful
establishment of co-operative sugar factory in 1959 has completely
revolutionized the life of the people in Warana co-operative complex. The
co-operative sugar factory, in fait is the backbone of the complex. The
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democratic setup wherein the members actively participate, give their
valuable suggestions, the sub committees of the board representing the
particular village and members aspirations coupled with the need based
services offered by all the co-operatives institutions in the complex is the
main factor for the member empowerment.
Economic and social services that persuade members to participate
are as:
1. Affordable and modern irrigation schemes, provision of agricultural
inputs at subsidized rates, access to advanced agricultural
technological information through “Warana Wired Village Project”,
the first of its kind in Asia, constant member initiatives like
seminars, demonstrations, field visits, workshops, training facilities,
etc has created an environment for the members to take farm
activities with enthusiasm.
2. Better rate of return to the members’ products, redressal of
economic grievances through provision of financial facility at
reasonable terms has attracted the farmer members to be loyal to
their institution in terms of supply of cane, availing facilities,
economic participation and democratic involvement.
3. Small farmers and landless people are made to involve in the dairy
and allied activities of Warana dairy helping to attain self
sufficiency. Members’ active involvement in extension activities,
production of quality milk is laudable.
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4. Provision of wide variety of choices of consumer products at
reasonable prices much below the MRP including member
attractive deposit schemes, sales promotion schemes and member
friendly activities like haldi-kumkum ceremony, festival rebates
added with courteous services at Warana Bazaar has benefited the
consumer members to enhance the sense of belongingness and
participation in purchasing, forwarding suggestions and member
related activities.
5. Provision of social services like medical and education facilities to
members’ children at concessional rates, access to library,
technical education, gymnastic, gobar gas plants, aid to temples,
constructing community halls in backward areas, village drinking
water facility, community marriage system, fostering children’s
orchestra, employment towards women folk, involving women in
decision making and promoting the various income generating
activities to both men and women members have made Warana
Co-operative Complex a land of many facets for member
participation and member employment.
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Chapter I
Industry and Organization Profile
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1.1 Profile of Co-operatives in Indian Retail Industry:
Retailing is the largest industry of the world. During the last five years,
there has been a lot of consolidation and concentration in the field of
retailing so much so that in all the developed countries the top five
retailers control more than 60% of the food retailing. Cooperatives have
also been contributing significantly to retail businesses in the country.
Consumer cooperatives are retail firms owned by their respective
customer members. In such cooperative arrangements, groups of
consumers, invest in the cooperative, receive stock, certificates, elect
officers, manage operations and share profits or savings that accrue.
Consumer cooperatives came into existence with the purpose of operating
stores as well or better than traditional retailers, of getting control over
prices, of saving money by substituting their own labour or getting access
to healthful, environmentally safe plots, not available from traditional
stores. The consumer cooperatives have been playing an important role in
the distribution of various items of essential consumer goods both in the
urban as well as rural areas. In India consumer cooperatives had confined
their retail business to small shops till 1965. Thereafter, supermarkets and
departmental stores have come up in different parts of the country with
governmental assistance.
But in the wake of liberalization and opening up of modern stores by
private groups in the urban areas, the business of consumer cooperatives
have been adversely affected due to poor infrastructure and absence of
professional and modern systems of management. But, by and large the
credibility of institution still exists on account of quality and good
measurement standards where the cooperatives should not allow a
chance to others and make all efforts to retain this faith with the members.
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The retail market size of India is estimated to be around $180 billion.
Retailing provides jobs to almost 15 percent of employable Indian adults
and it is perhaps the largest contributor to India’s GDP. But the flip side of
the coin is; the average size of each of the retail outlets in India is only 50
sq. feet and though a large employer, the industry is much unorganized,
fragmented and with a rural bias.
Vision 2010:
The past 2-3 years have seen a number of developments in the retailing
business in India. The entry of corporate houses like RPG, Tatas, Piramals
and Reliance has increased the capital availability in the market. Bigger
players are in a position to take advantage of their sizes in dealing with the
manufacturers. Despite a slowdown in the economy customer queues at
the stores are not decreasing. Retail sector is bound to grow in the coming
years. But how much and in what direction are the questions that need to
be evaluated.
Various agencies have made different estimates of the size of organized
market in 2010. The one thing in common amongst these estimates is that
the Indian organized retailing industry will be very big in 2010. The status
of the industry will depend a lot on external factors like Government
regulations and real estate prices, besides activities of the retailers and
demands of the customers.
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1.2 Company Profile:
SHREE WARANA VIBHAG SAHAKARI GRAHAK MANDAL, LTD;
WARANA BAZAR, WARANANAGAR.
Tal: Panhala Dist: Kolhapur
Registration No: KPR/CON/28 Dated 07/08/1974.
Members: 10110
Area of Operation: 107 villages in Kolhapur and Sangli districts.
Board of Directors: 23
First Consumer Co-op. Stores in Rural India: - Warana Bazaar:
Warana Bazaar, the first consumer Co-operative store was founded
and registered in the year 1976 and started functioning on 2nd April 1978.
Warana Bazaar has been accepted as a model store by all concerned. It
has proved to be a successful departmental store in the country. The
success of Warana Bazaar has inspired the emergence of many more co-
operative stores in different parts of Maharashtra, Goa and other States in
the country. In the era of globalized economy too, Warana Bazaar is
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achieving heights of success with yearly turnover of Rs. 82 cores,
shouldered by 555 employees and Member’s strength of 10110 out of
them 78% are women members which is the special feature of this unit.
Warana Bazaar has two big department stores and 50 branches. Daily
turnover of Warana bazaar is more than Rs. 30 Lakhs and the society is in
surplus since beginning.
Warana co-operative complex has a chain of interlinked units
facilitated for the people in its command area to earn livelihood. The
people had to often rush to Kolhapur or Sangli to obtain their daily needs
and this resulted in waste of time, money, and energy. Sugar factory was
giving a serious thought to the idea of starting a consumer store at
Warananagar for meeting the daily requirements under one roof at fair and
reasonable price.
At that time there was risk involved in such a venture. Consultancy
and promotional cell of N.C.C.F. Ltd, New Delhi and I.L.O. experts were
searching for some location in rural part of the country for starting
Departmental Cooperative store and successfully operate it. Then the ILO
experts from Canada and Philippines visited Warananagar to examine the
location and in depth study of the area. After that they resolved to start the
first departmental store of the country.
The Warana cooperative sugar factory sponsored for the
consumers store. Warana Bazaar, the first of its kind in rural India. Shree
Warana Vibhag Sahakari Grahak Mandal Ltd. Established and registered
on August 7th 1976 and the Cooperative Developmental Store, Warana
Bazaar started on April 2nd 1978 with the assistance of the consultancy
and promotional cell if the N.C.C.F. Ltd. New Delhi.
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Reformulated Principles of Cooperation (Accepted By I.C.A):
• 1st Principle: Voluntary and Open Membership.
• 2nd Principle: Democratic Member Control.
• 3rd Principle: Member Economic Participation.
• 4th Principle: Autonomy and Independence.
• 5th Principle: Education, Training and Information.
• 6th Principle: Cooperation among Cooperatives.
• 7th Principle: Concern for Community.
Objectives of Warana Bazaar:
1. To supply quality goods at fair and reasonable price to the
customers.
2. To make available all type of goods under one roof.
3. To supply goods at same rate to all customers.
4. To supply fresh and clean goods to the customers.
5. Give information about food adulterations to the customers.
TABLE NO: 1
Development of Warana Bazaar
Sr. No Year Members Sales in Lakhs Growth %1 1979-1980 1471 147 --2 1984-1985 3068 470 26.43 1990-1991 4863 1365 27.14 1994-1995 8656 2528 24.05 1999-2000 9776 4155 10.46 2000-2001 9776 4413 6.207 2001-2002 9779 4636 5.04
1. The first Cooperative Department Store in Rural India.
2. Yearly turnover above Rs. 80 crores.
3. Audit class “A” since beginning.
4. Ranks third in sales turnover in India.
5. Women participation more than 77% of the total members.
6. Department store who has employed 50% women in staff.
7. Bazaar having 10000 sq. ft. selling area on the first floor.
8. First store which started training centre i.e. consultancy for different
bazaars.
Administration of Warana Bazaar:
The Administration of Warana Bazaar is an example of systematic
administration which one can apply. Chairman and Directors of Warana
Bazaar personally do hard work for the organization. They always try to
purchase the pure and best goods from the reliable parties or direct
from manufactures and producers by keeping good relation with them.
They visit to all branches and departmental stores and check the
financial status of the branches whether it is in profit or loss and helps
to solve the problems regarding the branch.
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Organization Chart:
Figure: 1
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General Body
Board of Directors
Chairman
Vice Chairman
General Manager
AccountsManager
PurchaseManager
SalesManager
Chief Auditor
Chief Accountan
Branch Accountan
Clerks
Purchase Assistant
Purchase Clerks
Sales Superviso
Sales Staff
Section In-charge
Assistant and helpers
Audit Staff
Board of Directors:
The board of directors handles the management carefully.
1. Chairman 01
2. Vice Chairman 01
3. Directors
• Male 05
• Female 09
4. Employees representative 02
5. General Manager 01
The board meeting is arranged every year:
• Board of Directors meeting – 12
• Purchasing committee meeting - 43
• Branch committee and managers meeting - 12
• Employees committee meeting - 12
• Audit committee meeting - 12
• Recovery Committee meeting - 12
• Franchisee committee meeting - 13
Board of directors meeting is arranged for discussing newer ideas and
problems of the store. Records of meetings are maintained regularly. The
board has constituted sub committees to look after day to day
management of stores.
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Board of Directors:TABLE NO: 2
Board of Directors2002-03 to 2007-08
Name DesignationSmt. Shobhatai V. Kore ChairpersonMr. Nemgonda A. Patil Vice ChairpersonSmt. Lilavati D. Kore DirectorMr. Vijaysinha G. Jadhav DirectorMr. Laxman T. Salunkhe DirectorMr. Ganpati S. Shete DirectorMr. Subhash A. Desai DirectorMr. Vishwanath T. Patil DirectorMrs. Putalabai P. Gaikwad DirectorMrs. Ashwini A. Patil DirectorMrs. Babutai R. Mahapure DirectorMrs. Sharada B. Mulik DirectorMrs. Sajakka P. Shid DirectorMrs. Jayashri U. Kulkarni DirectorMrs. Suvarnadevi L. Patil DirectorMrs. Shila R. Chougule DirectorMr. Dayanand S. Utale DirectorMr. Rajendra V. Powar DirectorMr. Sharad A. Mahajan Gen. Manager, Ex. Officio
SecretaryMr. Vijay S. Kesarkar Consultant
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Area of Operation:
TABLE NO: 3
Area Of OperationSr. No District Tahsil No of Villages
Late after independence, there were many challenges before the country.
Out of those were poverty, illiteracy, unhealthiness, etc. There was a
requirement for the development in areas of agriculture industry through
which the challenges could be overcomed. During those days the Warana
Valley region was situated in the hilly areas where irrigation was the major
problem and the farmers had to follow dryland cultivation. There were no
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options for the development of the people, which lead to arise of loots,
dacoits and robberies in the Warana Valley.
At such time there emerged a diamond in Kodoli village of Warana Valley
who lightened up the lives of the rural people in the Warana Valley. He
was Shri. Vishwanath Anna alias. Tatyasaheb Kore. For the people he was
not just a common man but who took birth for the rural people to diminish
the illiteracy and the darkness of poverty. He was the person responsible
for changing the lives of more than 5 Lakh people on the earth. He worked
for the rural community until his last moment.
Shri. Tatyasaheb Kore first established Cooperative Sugar Factory for
which he struggled day and night. He suggested the rural people to grow
cash crops, for which irrigation was necessary. For meeting the purpose of
irrigation, he started irrigation schemes and also he requested the
government to construct dam. And at last the dryland agriculture was
totally converted into irrigated land with his efforts. But only availability of
irrigated land was not just a plus point but proper overall management was
necessary i.e. management of water and development of Agriculture as a
business and also other secondary businesses which will be supporting
agriculture. The farmers needed financial assistance for the development
and at the times of difficulties. There was a need of a bank in rural areas
which would help the farmers by giving them loans at cheaper interest
rates. For this purpose the Registrar gave permission for the
establishment of co-operative bank in rural area in Maharashtra on trial
basis. It was started with initial paid up share capital of Rs. 1.28 Lakh on
28/02/1966.
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The development of co-operative bank in rural area, its financial status,
and management was seen by Reserve Bank of India. Then RBI under
Banking Regulation Act, 1949, Rule No. 56 (O) gave Banking License to
the bank on 21/11/1983. After that the bank has made a super fast growth
during last 37 years. Bank started 4 branches in Kolhapur district, 1
branch in Sangli district and 1 branch in the economic capital of India i.e.
Mumbai at Washi. At present there are 23 branches and 1 extension
counter and all are computerized. The bank provides maximum loans to
the rural artisans like the potter, cobbler, welder, etc to develop their small
businesses. Also it provides loans for the purchase of Truck, Tractors,
Rickshaw, and Vans.
The dreams dreamed by Shri. Tatyasaheb Kore to start the Warana co-
operative complex and with the same dreams keeping in mind and
working on it efficiently to make those dream true by the Chairman of
Warana Sahakari Bank, Mr. Nipunrao Kore and Hon. Vinayraoji Kore are
working wholeheartedly to fulfill those dreams of Shri. Tatyasaheb Kore.
The bank which took birth in the rural area and started its branches and
operations in urban areas i.e. Warana Sahakari Bank, Warananagar. The
development of sugarcane cultivator, farmers in the Warana Valley was
only due to the establishment of Warana Cooperative Sugar Factory. But it
was not the limit for Tatyasaheb Kore. He wanted the other people in the
unreached areas like small and marginal farmers, village artisans,
landless labourers, agricultural labourers, and backward class people to
be developed.
Today all economic transactions in Warana are through Warana Co-
operative Bank Ltd. To maintain the strong economy of the valley, the bank
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took shape in 1966. It is creating the banking mind in the rural population.
The bank is playing a pivotal role in the overall development of Warana
and the rural mass. It provides loans at subsidized interest rates for all
farmers, weaker section and the needy. The efficiency of the bank is
reflected on the latest statistical information like Rs. 67 crores of deposits
are accepted and around Rs. 50 crores loan has been lent. The bank is
aiming still high in the days to come. The bank even accepts NRI deposits.
Probably this is a unique bank where the branches are spreading from the
rural head office to city branches.
General Information:
Table No: 8
(Rupees in Lakhs.)As on 31-03-2008
1. Shareholders 177822. Authorized Capital 1500.003. Paid up Share Capital 793.924. Total Reserves and Funds 2134.765. Deposits 32198.146. Deposits Accounts 1344787. Advances 20123.758. Advances Account 189389. Working Capital 35897.141
0.
Audit Class “A”
1
1.
Profit (31-03-2008) 117.40
1
2.
Dividend (31-03-2007) 10%
Source: Annual Report
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Branches:
i. Main Branch, Warananagar.
ii. Laxmipuri, Kolhapur.
iii. Kini, Tal: Hatkanagale, Dist: Kolhapur.
iv. Herle, Tal: Hatkanagale, Dist: Kolhapur.
v. MIDC, Shiroli, Tal: Hatkanangale, Dist: Kolhapur.
vi. Ichalkaranji, Tal: Hatkanangale, Dist: Kolhapur.
vii. Bhavani Mandap, Kolhapur.
viii. Peth Vadgaon, Tal: Hatkanangale, Dist: Kolhapur.
ix. Jaysingpur, Tal: Shirol, Dist: Kolhapur.
x. Extension Counter, Warana College.
xi. Shiroli Pulachi, Tal: Hatkanangale.
xii. Bagal Chowk, Kolhapur.
xiii. Kodoli, Tal: Panhala, Dist: Kolhapur.
xiv. Pargaon, Tal: Hatkanangale.
xv. Aitawade Khurd, Tal: Walwa, Dist: Sangli.
xvi. Khochi, Tal: Hatkanangale, Dist: Kolhapur.
xvii. Shigaon, Tal: Walwa, Dist: Sangli.
xviii. Satave, Tal: Panhala, Dist: Kolhapur.
xix. Chikurde, Tal: Walwa, Dist: Sangli.
xx. Kale, Tal: Panhala, Dist: Kolhapur.
xxi. Vashi, Navi Mumbai.
xxii. Mangale, Tal; Shirala, Dist: Sangli.
xxiii. Market Yard, Sangli.
xxiv. Market Yard, Kolhapur.
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Awards won by Warana Sahakari Bank Ltd, Warananagar:
• Maharashtra State Co-operative Banks Association Ltd, Mumbai’s
Late. Padmabhushan Vasantdada Patil Best Co-operative Bank
Award.
• Kolhapur District Cooperative Banks Association’s First Award for
-- Best Co-operative Bank.
-- Best Bank Management.
-- Best Recovery Management.
Features of Warana Bank:
• Proper Distribution of profits:
Table No: 9Particulars Amount
a. Reserve Fund 38,00,000.00b. Dividend to Members @10% 73,62,000.00c. Rural bad debts funds 33,78,000.00d. Building Fund 3,00,000.00Balance of Profit for next year 382.74
Total 1,48,40,382.74
• Provide loans at lower interest rates.
• Provide insurance to the members (Aviva Life Insurance).
• Provide General Insurance (Bajaj).
• Samvad Programme/Customer Meet – During the year 2003-04 the
bank started a novel idea of “Customer Meet” and these meets are
held at Kolhapur, Sangli, Jaysingpur and Ichalkaranji wherein the bank
tried to establish ‘productive dialogue’ with the customers. The
customers give an overwhelming response regarding the problems of
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customers in bank, the suggestions for the improvement and their
demands.
• Biometric system ATM – Thumb impression are used to withdraw cash
upto Rs. 30000/-.
• Electricity bill payment facility started.
Facilities provided to the staff:
• Two dresses per year.
• Medical allowance upto Rs. 2000/-
• Bonus upto 20%.
• Incentives upto 10% of his pay.
• Special deposit scheme.
• Housing loans.
• Loan against payment.
• Vehicle loans.
• Cash credit loan.
Competitors of Warana Bank:
Following are some of the competitors of Warana Bank:
• Ichalkaranji Janata Bank, Ichalkaranji.
• Ratnakar Bank, Kolhapur.
• Bank of India.
• State Bank of India.
• Kolhapur District Central Co-operative Bank.
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Report of the Statutory Auditors for the year 2007-08
(Under section 81 (5b) of Maharashtra Co-op Societies Act and Rule 69 of
Maharashtra Co-op Societies Rules as applicable under Banking
Regulation Act.)
We have audited the Balance Sheet of ‘Warana Sahakari Bank Ltd’ as on
31st March, 2008 and also Profit & Loss Account for the year ended on that
date. These financial statements are the responsibility is to express an
opinion on these financial statements based on our audit.
We have conducted our Audit in accordance with Auditing Standards
generally accepted in India. These standards require that we plan and
perform the Audit to obtain reasonable assurance about whether the
Financial Statements are free of material misstatement. An audit also
includes assessing the accounting principles used and significant
estimates made by the Management as well as evaluating the overall
financial statement presentation. We believe that our Audit provides a
reasonable basis for our opinion.
We report that
1. We have obtained all the information and explanation which to the best
of our knowledge and belief were necessary for the purpose of Audit.
2. In our opinion proper books of accounts as required by the law have
been kept by the bank as far as appears from our examination of the
books.
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3. The Balance Sheet and Profit & Loss account dealt with by this report
are in agreement with the Books of Accounts.
4. In our opinion and to the best of our knowledge and according to the
explanation given to us, the books of accounts are in conformity with
the law.
a. In case of Balance Sheet of the state of affairs of the bank as at
31st March, 2008 and
b. In case of Profit and loss Account, of the profit for the year
ended on that date are in accordance with part ‘a’, ‘b’, & ‘c’ of
the Audit Report and show true and fair view.
c. After considering the working and functioning during the year
2007-08 the bank is allotted Audit Grade “A”.
Date: 25/09/2008
Place: Kolhapur.
S/d
Girish A. Samant
Partner
Mem. No. 104820
(For M/S. Powar, Samant, and Jagoje Chartered Accountants.)
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Chapter II
The Project
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2.1 Title:
“Evolution of Warana – Beyond the Lucky Gold Star Group”.
2.2 Objectives:
• To study the role of leadership in starting up of Warana Bazaar
and Warana Bank and its progress.
• To identify the competitive advantages of Warana Bazaar and
Warana Bank Vis a Vis the other retail outlets and the banks.
• To provide a SWOT analysis of the functioning of Warana
Bazaar and Warana Bank besides, a future perspective of the
same.
• To know the response of customers towards the Warana
Bazaar.
2.3 Expected Results:
Following results are expected from the project:
Drawing management and leadership lessons from Warana
Bazaar and Warana Bank which can be applied to similar other
organizations.
Future performance and competitiveness of Warana Bazaar and
Warana Bank.
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2.4 Advantages of the study:
This study shows the ultimate effects of the growth of professionalism in
co-operatives. The study shows whether the cooperative will withstand
in future and fight the battle of independence. This study highlights the
changes coming in co-operative management due to mixture of
essence of visionary leadership.
2.5 Limitations of Project Study:
Following limitations may come while conducting the project.
Due to the limited availability of time, the study was conducted on
a short term basis which increases the chances of
misinterpretations.
Reluctance of people in taking active participation due to lack of
interest.
Sampling errors may be the other limitation.
Based on the results further research can be carried out taking
large area and sample size.
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Chapter III
Research Methodology
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3.1 Definition:-
According to John Best, “Research is a more systematic activity directed
towards discovery and the development of the organized body of
knowledge”.
Marketing Research is the systematic design, collection, analysis and
reporting of data and finding relevant to a specific marketing situation
facing the company. The marketing research process consist of five steps
such as defining the problems and research objectives, developing the
research plan, collecting the information, analyzing the information
presenting the findings.
3.2 Data Collection:
While deciding about the method of the data collection to be used for the
study, the researcher should keep in mind two types of data i.e. primary
and secondary.
There are two methods of data collection:
3.2.1 Primary data:
The primary data are those which are collected a fresh and for the
first time. Collect the primary data during the project. Primary data
will be obtained either through observation or through direct
communication with respondent and interviews.
3.2.2 Secondary data:
Secondary data are those which have already collected by
someone else and which have been already passed through the
statistical process. Sources of secondary data may either be
published data or unpublished data. Usually published data are
available in various publications through the central, state, & local
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government. Technical and trade journals, books, magazines, news
papers, unpublished data also like reports, diaries, letters, trades
associates. Here in this study the researcher have used secondary
data means the data which have already been collected by
someone else and which have already been passed through the
statistical process. Here the researcher has used the secondary
data in the form of:-
• Data from finance department.
• Data from the Internet.
3.3 Methods utilized for Study:
The development of WARANA can be compared with the
development of “The Lucky Gold Star Group” of South Korea. But
due to time constraints I have selected only “Warana Bazaar” and
“Warana Bank” for my study.
Case studies on history of leaders of Warana starting from
Tatyasaheb Kore and others.
Interaction with professionals and their perception about
performance and future perspective.
Performing SWOT analysis and financial performance of Warana
Bazaar and Warana Bank.
Semi-structured questionnaires were prepared as per the need for
the present study and data was collected by personal interviews
and through discussion with different stake holders.
Secondary data was collected from the records of the organization
a.e. annual reports, literatures and other sources.
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Chapter IV
Data Processing and Analysis
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A. WARANA BAZAAR:
1) Members:
TABLE NO: 10
Manpower Involvement (31/03/2007):
Sr. No Manpower Male Female Total1 Individual Members 2211 7892 101032 Board of Directors 9 10 193 Purchase Committee Members 2 4 64 Staff Committee Members 2 4 65 Branch Committee Members 5 2 76 Audit Committee Members 3 3 67 Recovery Committee Members 3 2 58 Franchisee Committee Members 4 3 7