LIJJAT - Case Study
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SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD 1
Case - Lijjat Papad- About the organization
Owned by Shri Mahila Griha Udyog Lijjat Papad
Based on the Gandhian concept of trusteeship or Sarvodaya
In 1966, registered under Bombay Public Trust Act, 1950 & Societies Registration Act, 1860.
A Village Industry Unit under ‘Processing of cereals & pulses industry’ group.
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LIJJAT MASCOT
Case - Lijjat Papad- About the organization
Objective – Provide employment to the ladies to enable them to earn a decent & dignified livelihood
Profits/ Losses are borne by all the 42,000 sister members collectively.
Total turnover – Rs. 315 crores, inclusive of Rs. 12 crores of Exports
Competitors – MDH, Bikaner, Saktibhog 4
Organizational Structure
A Central Managing Committee
Branches are headed by a Sanchalika
Management Committee’s approval required for starting a new project or activity.
Divisions – Marketing, Advertising, Sales Promotion & Exports. 5
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. Sutar
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Lijjat Philosophy
Concept of Business.
The concept of Family & Devotion
Never accepts donation, charity, gift or grant from any quarter.
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. 7
Case - Lijjat Papad- About the organization Awards & Accolades
Best Village Industry 1998-99, 2000-01 & 2003
ET Award of “Businesswomen of the Year” 2001-02 for Corporate Excellence
Featured on BBC World in the programme “Business Bizarre”
A Six Sigma Company 8
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 9
Variants for Lijjat Papad ITEMS
Small Size Mini Size 100 200 gms gms (Rs.) (Rs.)
Small Size Big Size 200 250 gms gms (Rs.) (Rs.)
Small/ Big Small/ Big Small/ Big Size Size Size 500 1kg. 2.5kg( gms (Rs.) Rs.) (Rs.)
UDAD with Pepper 10.00
18.00
18.00
23.00
42.00
82.00
198.00
UDAD with Garlic – 10.00 Chillies
18.00
18.00
23.00
42.00
82.00
198.00
UDAD with Red Chillies
10.00
18.00
18.00
23.00
42.00
82.00
198.00
Moong (50% Udad 10.00 & 50% Moong)
18.00
18.00
23.00
42.00
82.00
198.00
UDAD Special
11.00
21.00
21.00
25.00
47.00
91.00
222.00
MOONG Special (50% Udad & 50% Moong)
11.00
21.00
21.00
25.00
47.00
91.00
222.00
Punjabi Masala Special
11.00
21.00
21.00
25.00
47.00
91.00
222.00
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Production
63 branches, 40 divisions all over India;16 Branches in Mumbai & its suburbs.
Head office at Bandra
Raw material purchasing is centralized to keep uniformity in tastes
Own laboratory in Mumbai to test & code the final product.
Compulsory for each sister member to roll 3 kgs of papad everyday. 11
Production
Branch Office normally operates from 5:00 am to 10:30 am
On an average, papad rolling members can roll 1.5 to 2 kg of papad per hour
Production costs borne by the papad rollers.
Intentionally no introduction of any kind of technology for production of papads
30-35% of production is exported to UK, US, Japan, Europe, Australia, Middle East etc. 12
Marketing & Distribution
Each branch markets its own products in the allotted area
Centralized Marketing Office
Advertising in vernacular newspapers, television & radio
It attends the trade fairs which are organized/ promoted by the KVIC 13
Marketing & Distribution
Wide network of Dealers & Distributors & excellent Goodwill
Upfront deposit: 25,000 to 2,50,000
Dealers Commission – 7%
Retailers Margin -Rs. 2.25 per 200 grams sold at Rs.14 -Rs. 26 per 2.5 Kg. sold at Rs. 150
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Finance
Accounting year from 1st April to 31st March
Sales for papad – 11.81 crores (Audit report 2003-2004)
Purchase of Raw Material exempt from tax
Papad as a product is exempt from Sales Tax.
It gets an interest subsidy from the KVIC
The organization seeks financial assistance from Bank of India, Bank of Baroda, Dena Bank and KVIC 15
Human Resource
Workforce – 42000 women
Organization is by the women, of the women & for the women
Sign the Pledge Form to become a member.
Interaction through Area Meetings, AGM’s & All India Convention 16
Human Resource
Woman of any caste, creed, colour, who can render physical work can become a sister member
Minimum age should be 18 years
Training for new members is on-the-job for 15 days
Allotment of work decided by sister members by consensus 17
Human Resource
Payment, called ‘vanai’ made straightaway; average monthly ‘vanai’ for each sister member is Rs-2000 to Rs.3000 for roughly 6 hours of work.
For 1 kg. Papad rolled, Rs.70/- paid as ‘vanai’
During Festivals & special occasions, ‘extra vanai’ is paid to the sisters.
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Welfare Facilities for the ‘Sisters’
Minibuses to come to the branches everyday
Preventive Health Care programmes
Compulsory primary education for all sister members
Scholarships or Grants to the dependents of the sister members
No Retirement Benefits
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Corporate Social Responsibility
Give - back policy
Rehabilitation of Chincholi, Latur & Bhujpur
Draught Relief Work
Participation in Asha Dhan activities
Tsunami Donation
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Lijjat – Critical Success Factors
Merging of Ownership with Membership
Consistent quality of the product
Informal Work Environment
Make Leaders out of ordinary women
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Threats to Lijjat
Fake Lijjat papads in market.
Fast growth has caused few state governments to withdraw tax exemptions
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Future Plans
Expansion of production facilities and establishment of new facilities to cope with the increasing demand.
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
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