Topic  

Small Scale Industry

(Lijjat Papad)   

Index

Sr. no. Topic

1. Introduction

2. History and growth

3. Core Value

4. Organisation Structure

5. Products

6. Diversification

7. Whats New

8. Trade Quotations

9. Problems

10. Scope and Future

11. Bibliography

Introduction

Shri Mahila Griha Udyog Lijjat Papad, popularly known

as Lijjat, is an Indian, women's organization involved in

manufacturing of various fast moving consumer goods. The

organization's main objective is empowerment of women by

providing them employment opportunities. Started in the year

1959 with a seed capital of Rs. 80, Lijjat today has an annual

turnover of around Rs.520 crores, with Rs. 250 crore in

exports and provides employment to around 42,000

employees. Lijjat is head quartered in Mumbai and has 72

Branches and 27 Divisions all over India.

Lijjat is primarily a cottage industry, urban by its

origin, that has spread to the rural areas. It is considered as one

of the most remarkable entrepreneurial initiatives by women that

is identified with female empowerment in India.

History and Growth

Lijjat was the brain child of seven semi-literate

Gujarati housewives from Bombay (now Mumbai). The women

lived in Lohana Niwas, a group of five buildings in Girgaum. They

wanted to start a venture to create a sustainable livelihood using

the only skill they had i.e. cooking. The seven women were

Jaswantiben Jamnadas Popat, Parvatiben Ramdas Thodani,

Ujamben Narandas Kundalia, Banuben. N. Tanna, Laguben

Amritlar Gokani, Jayaben V. Vithalani, and one more lady

whose name is not known.

The women borrowed Rs 80 from Chaganlal Karamsi

Parekh, a member of the Servants of India Society and a social

worker. They took over a loss-making papad making venture by

one Laxmidasbhai and bought the necessary ingredients and the

basic infrastructure required to manufacture papads. On March

15, 1959, they started with the production of 4 packets of

Papads. They started selling the papads to a known merchant in

Bhuleshwar. From the beginning, the women had decided that

they would not approach anyone for donations or help, even if

the organization incurred losses.

Initially, the women were making two different

qualities of papads, in order to sell the inferior one at a cheaper

rate. Chaganbapa advised them to make a standard papad and

asked them never to compromise on quality. He emphasized to

them the importance of running it as a business enterprise and

maintaining proper accounts.

Lijjat expanded as a cooperative system. Initially, even

younger girls could join, but later eighteen was fixed as the

minimum age of entry. Within three months there were about 25

women making papads. In the first year, the organization's

annual sales were Rs. 6196.

The group got considerable publicity through word of

mouth and articles in vernacular newspapers. This publicity

helped it increase its membership. By the second year of its

formation, 100 to 150 women had joined the group, and by the

end of the third year it had more than 300 members.

An attempt to start a branch in Malad suburb of Mumbai, in 1961,

was unsuccessful. In 1962, the name Lijjat (Gujarati for "tasty")

was chosen by the group for its products. By 1962-63, its annual

sales of papads touched Rs. 1.82 lakh.

In July 1966, Lijjat registered itself as a society under the

Societies Registration Act 1860. In the same month, on

Chaganbapa's recommendation, U N Deodhar, the chairman of

KVIC personally inspected the Lijjat. KVIC or Khadi Development

and Village Industries Commission is a statutory body set up by

the Government of India for development of rural industries. In

1966, KVIC granted it a working capital of Rs. 8 lakhs (0.8 million)

and was allowed certain tax exemptions.

An attempt to start a branch in Sangli town, in 1966, was

unsuccessful. The first branch outside Maharashtra was

established at Valod, Gujarat in 1968. After tasting tremendous

success with their papads, Lijjat began producing other products

like khakhra (1974), masala (1976), vadi, wheat atta, and bakery

products (1979). In 1970s, Lijjat set up flour mills(1975), printing

division (1977) and polypropylene packing division (1978).

The group also initiated some unsuccessful ventures

such as cottage leather (1979), matches (1979), and agarbattis

(incense sticks).

In 1987, Lijjat purchased new premises at Kamal Apartments in

Bandra, a suburb of Mumbai. The registered office shifted to the

Bandra with effect from July 1988. In 1988, Lijjat entered the soap

market with Sasa detergent and soap.. Sasa had annual sales of

Rs 500 million, accounting for 17 percent of Lijjat's total turnover

in 1998. In March 1996, the 50th branch of Lijjat was inaugrated

in Mumbai.

In 1980s, Lijjat also started taking part in several trade fairs and

exhibitions, which improve its sales and made the brand name

"Lijjat" well-known among the people. The advertising was

undertaken through the vernacular newspapers, television and

radio. The institution sponsored programs and gave away gifts for

the winners of specific shows in the television.

In the 1980s and 1990s, Lijjat started attracted attention of

foreign visitors and officials. The Vice-President of Uganda, Dr.

Speciosa Wandira-Kazibwe, visited Lijjat's central office in January

1996, since she wanted to start a similar institution in Uganda.

Lijjat started exporting its products with the help of merchant

importers in the United Kingdom, the United States, the Middle

East, Singapore, the Netherlands Thailand, and other countries.

Its annual exports accounted for more than US$2.4 million in

2001.

Lijjat received the "Best Village Industries Institution"

award from KVIC for the period 1998-99 to 2000-01. In 2002, the

"Businesswoman of the Year" award was given to "The Women

Behind Lijjat Papad" at The Economic Times Awards for Corporate

Excellence. At the awards ceremony, the President of Lijjat urged

the State Governments of Maharashtra and Punjab to reconsider

their decision of withdrawing the tax exemption on Lijjat's Sasa

Detergent.

In 2002, Lijjat had a turnover of Rs 3 billion and exports worth

Rs.100 million. It employed 42,000 people in 62 divisions all over

the country. The 62nd branch became operational at Jammu and

Kashmir in 2002, enrolling over 150 members.

In 2003, Lijjat received the "Best Village Industry Institution". It

also received the PHDCCI Brand Equity Award 2005.

Lijjat marks its 50th year of existence on March 15, 2009.

Core Value

Shri Mahila Griha Udyog Lijjat Papad is synthesis of three different

concepts, namely,

(1) The concept of Business

(2) The concept of family

(3) The concept of Devotion

The institution has adopted the concept of business

from the very beginning. All its dealings are carried out on a

sound and pragmatic footing - Production of quality goods and at

reasonable prices. It has never and nor will it in the future, accept

any charity, donation, gift or grant from any quarter. On the

contrary, the member donate collectively for good causes from

time to time according to their capacity.

Besides the concept of business, the institution along

with all it's member sisters have adopted the concept of mutual

family affection, concern and trust. All affairs of the institution are

dealt in a manner similar to that of a family carrying out its own

daily household chores. But the most important concept adopted

by the institution is the concept of devotion. For the member

sisters, employees and well wishers, the institution is never

merely a place to earn one's livelihood It is a place of worship to

devote one's energy not for his or her own benefits but for the

benefit of all. In this institution work is worship.

Organization Structure

Products

Different Products of the organizations are as

follows:

1. Papad

2. Khakra

3. Vadi

4. Masala

5. Aata

6. Bakery Products

7. Chapati

8. Detergent

Diversification

Shri Mahila Griha Udyog has diversified its various

activities. Besides it's world famous papads it also currently

has

A Flour Division at Vashi (Mumbai) where flour is milled

from Udad Dal and Moong Dal.

A Masala Division at Cottongreen (alongwith a Quality

Control Laboratory) at the same place where different kinds

of spice powders like Turmeric, Chillies, Coriander and ready

mix masala and like Garam Masala, Tea Masala, Pav Bhaji

Masala, Punjabi Chole Masala etc. are prepared and packed

in consumer packs.

A Printing Division also at the same place.

Lijjat Advertising Division at Bandra (Mumbai)

A Khakhra Division at Buhari (Dist-Valod)

Chapati Divisions at Wadala, Borivali, Mulund & Kandivali

(Hanuman Nagar)

A Polypropylene set-up at Kashi-Mira Road.

A Vadi producing factory at Valod.

A Bakery Division at Valod.

A Detergent Powder and Cakes manufacturing unit at

Pune (Sanaswadi) and Hyderabad.

What’s New

Beware of fake Lijjat Papad

Our valued Customers particularly from USA, U.K. & other countries are hereby cautioned that fake Lijjat Papad packets are being circulated in the Market.

Genuine Lijjat Papad packets are being solely manufactured by its 62 authorised Branches all over India which has Mumbai Head Office Address. Fake Lijjat Papad have no Mumbai Head Office Address and that is sure proof of they are being fake.

Hence people are cautioned to ask for only genuine Lijjat Papad packets and check the original Lijjat Trademark and photograph of a boy 'Babla - eating papad alongwith Bunny Rabbit with papad in hand' before buying to get value for your money.

Trade Quotations

(Papad)

Dealer Price(in Rs) – Papad

Items

Udad with

Pepper

Udad with

Garlic &

Chillies

Udad with Red

Chillies

Moong (50%

Udad & 50%

Moong)

Udad Special

Moong Special (50%

Udad & 50%

Moong)

Punjabi Masala Special

Small / Big Size 100 gms

13.00 13.00 13.00 14.00 14.00 14.00 14.00

Small / Big Size 200 gms

25.00 25.00 25.00 28.00 28.00 28.00 28.00

Mini Size 200 gms

25.00 25.00 25.00 28.00 28.00 28.00 28.00

Small / Big Size 250 gms

30.00 30.00 30.00 35.00 35.00 35.00 35.00

Small / Big Size 500 gms

59.00 59.00 59.00 66.00 66.00 66.00 66.00

Small / Big size 1

Kg

115.00 115.00 115.00 130.00 130.00 130.00 130.00

Small/Big Size 2.5

kg

285.00 285.00 285.00 320.00 320.00 320.00 320.00

Consumer Price(in Rs) – Papad

Items

Udad with

Pepper

Udad with

Garlic &

Chillies

Udad with Red

Chillies

Moong (50%

Udad & 50%

Moong)

Udad Special

Moong Special(50% Udad & 50%

Moong)

Punjabi Masala Special

Small Size 100 gms

16.00 16.00 16.00 17.00 17.00 17.00 17.00

mini size 200 gms

30.00 30.00 30.00 34.00 34.00 34.00 34.00

small size 200 gms

30.00 30.00 30.00 34.00 34.00 34.00 34.00

Big size 250 gms

36.00 36.00 36.00 42.00 42.00 42.00 42.00

Small / Big size 500 gms

71.00 71.00 71.00 80.00 80.00 80.00 80.00

Small / Big

size 1 kg.

138.00 138.00 138.00 156.00 156.00 156.00 156.00

Small / Big Size 2.5 kg.

342.00 342.00 342.00 385.00 385.00 385.00 385.00

Problems

In 1985, the Lijjat branch at Jabalpur was taken over

by one Shantilal Shah as his own unit, which he ran with the help

of a Sanchalika (branch head), who was wife of his employee.

Lijjat went through tremendous pressures and court stay orders

to retrieve the situation.

As its popularity grow, Lijjat started facing the problem

of fake Lijjat papads being introduced in the market. In June

2001, three persons were arrested in this connection, in Bihar.

Lijjat's website explains the identification features of original Lijjat

papads.

Scope and Future Of

Organization

Lijjat papad is a brand with a difference .This brand is

a special one because it makes a difference in the livelihood of

thousands of poor women in India.Pappad is a form of Indian

crispy bread. The food is taken as a snack and also along with

lunch and dinner. Lijjat has become an integral part of the Indian

palette through sheer determination and hard work.The most

important factor that the made this brand a success was the

careful operational planning that goes behind the brand.

The brand is having the strength of “ Consistently Good Quality”

as its USP.Recently this brand is also facing competition from

other players. Unlike other social brands, Lijjat was serious about

advertising. The brand communicated its Crispness and quality

through its ads.The ads features a Bunny ( mascot) and a very

popular jingle ‘Khurram Kharram”. The positive word of mouth,

the advertisement, the consistent good quality and the

distribution made this brand highly successful.

The company has also diversified into detergent branded SASA

and other food products. The brand is a unique success story. The

story of a movement that changed the lives of more than 40000

poor women.