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

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8 2002-2003 9779 4721 1.849 2004-2005 9795 6144 20.3010 2005-2006 9987 6886 12.0011 2006-2007 10103 7999 16.0012 2007-2008 10110 8167 2.09

Source: Annual Report

Features of Warana Bazaar:

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

1. Kolhapur Panhala 22Hatkanangale 31Karveer 6Shirol 3Gadhinglaj 1Shahuwadi 3Bhudargad 1Ajara 2

2. Sangli Shirala 7Walwa 27Miraj 4Total 107

The WARANA BAZAAR operates successfully in the two districts of

Maharashtra state i.e. Kolhapur and Sangli and covers almost 150 villages

surrounding them. Availing the benefits of the no restriction or no barriers

for the expansion, it is trying for further expansion in different villages.

Reasons for success:

i. Success will not be spelt without ‘U’ and “U” means the secret of

our success, ‘U’ means the stock holders, customers, Suppliers,

Employees depositors, well wishers etc. and they cause the

success.

ii. Enlightened leadership--- Late Sahakarmaharshi Shri Tatyasaheb

Kore was a great visionary. He has given birth to this consumer’s

co-operative store. He has put all efforts to see it a success. Hon.

Minister Shri. Vinayraoji Kore and Chairperson Smt. Shobhatai

Kore are following the same path.

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iii. Real and effective use of ICA co-operative 7 principles.

iv. No political interference but “one for all & all for one” working

culture.

v. Dedicated and devoted staff, In house consumer co-operative

training centre approved by Shivaji University, Kolhapur and

NABARD.

vi. Professional management:-

• Per man per day sale - to avoid over staffing

• Per square feet sale - Space utilization

• Stock turn Rate-Should be more than 15 times

• Break even point should be achieved by each unit.

• Percentage of expenses on employees should be less than 55 % of

Gross Profit.

• Purchasing from the place of origin / manufacturer

• Purchase pilot system (for minimum inventory)

• Transparency in Business

• Deposits from members / non members.

Activities for Members:

TABLE NO: 4

Activities for MembersSr. No Description

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1 8% rebate on the purchase of festival goods at the time of Dipawali.2 8% rebate on the purchase of festival goods at the time of Gudhi

Padva.3 10% cash rebate coupons for use throughout the year. Total 26%

on their investment in shares in the society. (for a class members) 4 Haldi-Kumkum Ceremony for lady members at the time of Makar

Sankrant.5 Purchase Rebate to customers 0.5%6 “Pak kala ”competition for lady members7 “Ashi bhesal Ashi chalakhi.Ashi Banava Banavi ”- Exhibition

Activities for Customers:

a) Daily welcome by staff at entrance.

b) Book fare.

c) Discount goods

d) Festival goods

e) Goods at cheaper rates

f) Own branded goods

g) Active pricing policy.

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Benefits to staff besides salary:

TABLE NO: 5

Benefits to staff

Sr. No Description %1 Provident Fund 12.02 Bonus 25.03 Incentive 12.54 House Rent Allowance 05.05 Pension Scheme 05.0

Total 59.5

• 34 days leave.

• 3 months maternity leave.

• Tea 2 times per day.

• On the job training for the trainees.

• Part time job provided for the college students.

• Mediclaim & personal accident insurance policy for all staff.

• Workers Welfare Trust registered under the trust act.

• Gratuity Trust registered under the trust act.

• Uniform.

• Performance incentives.

Additional Activities in Warana Bazaar:

a. Barcode system.

b. STD/ISD/PCO Booth at Warananagar & Vadgaon.

c. Xerox Services at Warananagar & Vadgaon.

d. Organization of demonstration of various types of goods.

31 | P a g e

e. Consumers meeting every year.

f. Organization of seminar on ‘Save Oil Save Nation’.

g. Organization of seminar on weights & measurement precautions.

h. Implementation of different schemes for sales promotion.

i. Food Testing Laboratory.

j. Own brands in edible oil (Cotton, Soya, and Groundnut).

k. Yoga & Pranayam shibir.

Staff Training & Development:

Consumers Co-op. Movement needs trained Staff. In order to get trained

staff the bazaar has started a training center under the name “Vilasrao

Tatyasaheb Kore Consumers Co-op. Training Center” in the year

1996. Every year salesman training programme of one month duration is

conducted in the center. Shivaji University, Kolhapur has approved this

programme. First ten students, of every batch are absorbed in the service

in Warana Bazaar; Employees who are already in service with various

Bazaars in Maharashtra are eligible for admission in the above training

programme. NABARD has approved this Programme.

32 | P a g e

Consultancy:

In order to promote the consumer Co-op. Movement in the country.

Warana Bazaar has provided consultancy & in store training to many Co-

op. Bazaars.

TABLE NO: 6

1. Raigad Bazar, Alibag 10. Adarsh Bazar, Goa

2. Raigad Bazar, Pen 11. Vedganga Bazar, Gargoti

3. Raigad Bazar, Khopoli 12. Jawahar Bazar, Dhule

4. Shreeram Bazar, Phaltan 13. Sattari Bazar, Valpoi, Goa

5. Tarun Bharat Bazar, Sangli 14. Rayat Bazar, Karad

6. Urban Bazar, Karad 15. Mahalaxmi Bazar, Satara

7. Lonavala Bazar, Lonavala 16. Shivshankar Bazar, Akluj

8. Bardes Bazar, Goa 17. Sagareshwar Bazar, Devrashtre

9. Bagayat Bazar, Goa

Warana Bazaar Sales Policy:

1. Fixed Price, Fixed Rate:

The rate of each commodity at all branches is same and fixed. No

variation in rate as per branch.

2. After sales service:

After sales service is must in every organization. It has also been

the part of Warana Bazaar. If the after sales service of Warana

Bazaar is better then and then only the people will prefer to

purchase from Bazaar again and again. It may be the source of

word of mouth publicity.

33 | P a g e

3. Sales Promotion Scheme:

Sales promotion schemes are started to retain the existing

customers and attract new customers to buy products from Warana

Bazaar. These sales promotion schemes are open during Dassera,

Diwali, Gudhi Padwa (Marathi New Year), Akshay Tritiya and

marriage seasons.

4. Best Quality:

The supply of produce at cheaper rate to the customer with

appropriate quality and quantity. For the same purpose product

knowledge is necessary. The availability of newer products to the

customers at proper time and in proper amount will help in

increasing overall sales.

5. Providing services to the customers/members at the places they

reside and making the material available on time essential for the

day to day use without any extra charges. The material is made

available in the respective branches as per the demand of

customers by which the time, money and energy of the customers

is saved.

6. The customers/members are made aware of the fake and spurious

products and the adulterated goods in the market by conducting

different awareness programmes at different places to prevent the

customers from getting cheated from the other retailers in rural

areas.

34 | P a g e

7. To make logistics and stock management efficient and best by

which maximum sales is obtained by keeping minimum stock level.

Proper care is taken of the goods which are not sold for longer time

for the expiry date.

8. Sales force training:

Observing the increasing trend towards the mall revolution and

other retail chains and the increasing investments of multinational

companies in Indian rural market, for that the staff in the outlets is

so trained in the field of retailing so that he can withstand in the

competition and face the challenges firmly. Nowadays, newer

marketing concepts and tactics are emerging which should be

reached up to the staff and also applied. So the sales force training

programmes are organized.

9. To provide proper service to the Warana Bazaar customers and the

members so that they can get the feeling that the Bazaar is for their

service through proper behaviour with the customers.

10.The fluctuating rates which are provided by the head office to all

branches are conveyed to the customers to improve the image of

Bazaar which will finally improve the overall sales.

35 | P a g e

11. Cleanliness:

Cleanliness is the mirror of mind. Cleanliness is maintained in the

bazaar because it makes effect on mind of the customer which may

help to improve the purchase and increase the overall sales.

12.Light Facilities:

Proper arrangement for lighting is done in bazaar to highlight

different products which becomes attraction for the customers

which increases the overall sales.

13.Display:

Display is a silent salesman. The display of goods in Warana

Bazaar is done attractively so that it attracts the customers towards

the product and which forces the customer to purchase it.

14.Medicines Department:

The timing of the medicines department is from Morning 8:00 am to

Night 9:00 pm. The medicines are made available to the customers

at reasonable rates. All type of medicines are made available.

15.Park for children:

The Colgate-Palmolive company has sponsored for the play park

for children in the area of Warana Bazaar.

36 | P a g e

Competitors:

Considering the Warana Bazaar there is no such retail chain as their

competitors but the private Kirana stores act as competitors at initial

stages in the areas where the branch of Warana Bazaar is established.

Initially when the branches were established at Kameri and Danoli

villages, it was seen that the per day sales of the branches was

Rs.10000/- to Rs. 15000/- but now the average per day sales has reached

up to Rs. 40000/-.

Franchisees:

Table No: 7

Sr.

NoWarana Bazaar Franchisee

Date of

Commencement

Daily

Average

Sales (Rs.)1 Takawade Dist: Kolhapur 01-10-2005 40002 Tung Dist: Sangli 03-04-2006 130003 Dudgaon Dist: Sangli 24-09-2006 100004 Rukadi Dist: Kolhapur 08-10-2006 110005 Jotiba Dist: Kolhapur 14-10-2006 160006 Herle Dist: Kolhapur 24-01-2006 60007 Kasabe Digraj Dist: Sangli 17-03-2007 120008 Nandre Dist: Sangli 19-04-2007 11500

37 | P a g e

1.3 Profile of Co-operative Banks in Indian Banking Industry:

The Indian Banking industry, which is governed by the Banking Regulation

Act of India, 1949 can be broadly classified into two major categories, non-

scheduled banks and scheduled banks. Scheduled banks comprise

commercial banks and the co-operative banks. In terms of ownership,

commercial banks can be further grouped into nationalized banks, the

State Bank of India and its group banks, regional rural banks and private

sector banks (the old/ new domestic and foreign). Banks in India can be

categorized into non-scheduled banks and scheduled banks. Scheduled

banks constitute of commercial banks and co-operative banks. During the

first phase of financial reforms, there was a nationalization of 14 major

banks in 1969. This crucial step led to a shift from Class banking to Mass

banking. Since then the growth of the banking industry in India has been a

continuous process.

As far as the present scenario is concerned the banking industry is in a

transition phase. The Public Sector Banks (PSBs), which are the

foundation of the Indian Banking system account for more than 78 per

cent of total banking industry assets. Unfortunately they are burdened with

excessive Non Performing assets (NPAs), massive manpower and lack of

modern technology.

On the other hand the Private Sector Banks in India are witnessing

immense progress. They are leaders in Internet banking, mobile banking,

phone banking, ATMs. On the other hand the Public Sector Banks are still

facing the problem of unhappy employees. There has been a decrease of

20 percent in the employee strength of the private sector in the wake of

38 | P a g e

the Voluntary Retirement Schemes (VRS). As far as foreign banks are

concerned they are likely to succeed in India. Currently, India has 88

Scheduled Commercial Banks (SCBs), 27 public sector banks (that is with

the Government of India holding a stake), 31 private banks (these do not

have government stake; they may be publicly listed and traded on stock

exchanges) and 38 foreign banks. They have a combined network of over

53,000 branches and 17,000 ATMs. According to a report by ICRA

Limited, a rating agency, the public sector banks hold over 75 percent of

total assets of the banking industry, with the private and foreign banks

holding 18.2% and 6.5% respectively.

With passing time, Indian economy is further expected to grow and be

strong for quite some time-especially in its services sector. The demand

for banking services, especially retail banking, mortgages and investment

services are expected to grow stronger. Therefore, it is not hard to

forecast few M&A, takeovers, and asset sales in the sector. Consolidation

is going to be another order of the day.

The Co operative banks in India started functioning almost 100 years ago.

The Cooperative bank is an important constituent of the Indian Financial

System. They are setup to provide easy loans to farmers or other persons

to set up his business. Though the co operative movement originated in

the West, but the importance of such banks have assumed in India is

rarely paralleled anywhere else in the world. The cooperative banks in

India play an important role even today in rural financing. The businesses

of cooperative bank in the urban areas also have increased phenomenally

in recent years due to the sharp increase in the number of primary co-

operative banks. Co operative Banks in India are registered under the Co-

39 | P a g e

operative Societies Act. The cooperative bank is also regulated by the

RBI. They are governed by the Banking Regulations Act 1949 and

Banking Laws (Co-operative Societies) Act, 1965.

Banking industry has been undergoing a rapid transformation. Banks

today are market driven and market responsive. With the entry of new

players and multiple channels, customers (both corporate and retail) have

become more discerning and less "loyal" to banks. This makes it

imperative that banks provide best possible products and services to

ensure customer satisfaction. They have been managing a world of

information about customers, their profiles, location, needs, requirements,

cash positions, etc. Furthermore, banks have very strong in-house

research and market intelligence units in order to face the future

challenges of competition, especially customer retention. They are

focusing on region-specific campaigns rather than national media

campaigns as effective strategy for a diverse country like India. Customer-

centricity also implies increasing investment in technology. Apart from the

Mobile Banking, including of SMS Banking, Net Banking and ATMs are the

major steps taken by the banks in India towards modernization. Some

cooperative banks in India are more forward than many of the state and

private sector banks. According to NAFCUB the total deposits & lendings

of Cooperative Banks in India is much more than Old Private Sector

Banks & also the New Private Sector Banks. This exponential growth of

Co operative Banks in India is attributed mainly to their much better local

reach, personal interaction with customers, and their ability to catch the

nerve of the local clientele.

40 | P a g e

1.4 Profile of Warana Bank:

SHREE WARANA SAHAKARI BANK LTD; WARANANAGAR,

TAL: PANHALA DIST: KOLHAPUR.

ESTABLISHEMENT: 28-02-1966.

Reg. No.: KPR/BNK/123, Dated 28-02-1966

Reserve Bank License No: DBOD.UBD.MH.364, P. 21-11-1983.

Jurisdiction: Kolhapur, Sangli, Pune, Satara, Solapur, Raigad, Ratnagiri,

Sindhudurg Districts and Navi Mumbai (Vashi).

History:

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

41 | P a g e

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.

42 | P a g e

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

43 | P a g e

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

44 | P a g e

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.

45 | P a g e

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

46 | P a g e

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.

47 | P a g e

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.

48 | P a g e

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.)

49 | P a g e

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.

51 | P a g e

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.

52 | P a g e

Chapter III

Research Methodology

53 | P a g e

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

54 | P a g e

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.

55 | P a g e

Chapter IV

Data Processing and Analysis

56 | P a g e

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

Total Staff 389 121 510

TABLE NO: 11

MembersYear Male Female Total

1993-94 1833 5667 75001994-95 2085 6571 86561995-96 2210 7473 96831996-97 2210 7479 96891997-98 2212 7477 96891998-99 2215 7481 96961999-00 2225 7551 97762000-01 2225 7551 97762001-02 2226 7553 97792002-03 2225 7554 97792003-04 2227 7581 98082004-05 2219 7576 97952005-06 2211 7776 99872006-07 2211 7892 101032007-08 2212 7898 10110

57 | P a g e

Figure: 2

From the above graph we can see that the number of members in 1993-

94 were 7500 and in 2007-08 were 10110. The faith of people on the

Warana Co-operative Complex and Tatyasaheb and his family was the

main reason for the increasing interest in Warana Bazaar by the members.

58 | P a g e

2) Share Capital (31/03/2007):

TABLE NO: 12

Sr. No Members Rs. in Lakhs1 Individual 53.852 Government 9.383 Warana co-op Sugar Factory 2.004 Other Institutions 0.26

65.49

TABLE NO: 13

Share CapitalYear Rs. in Lakhs

1993-94 35.241994-95 38.461995-96 41.501996-97 52.841997-98 57.901998-99 56.981999-00 56.792000-01 54.862001-02 54.672002-03 61.282003-04 62.52004-05 62.782005-06 66.022006-07 65.492007-08 63.75

59 | P a g e

Figure: 3

From the above figure it can be seen that the share capital of Warana

Bazaar is continuously increasing from Rs. 35.24 lakhs in 1993-94 to Rs.

63.75 lakhs in 2007-08.

Also as on 31/03/2007 the individual share capital of Warana Bazaar was

Rs. 53.85 Lakhs and that of governments share was Rs. 9.38 Lakhs. The

share of co-operative sugar factory was Rs. 2.00 Lakhs.

60 | P a g e

3) Working Results:

TABLE NO: 14

Sr.

No

Particulars

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

1) Sales

(Crores)

46.36 47.22 51.00 61.44 68.86 80.00

2) Gross Profit

(Lakhs)

294.18 317.55 309.97 330.51 368.56 393.39

3) Net Profit

(Lakhs)

04.65 05.47 06.63 07.31 8.90 9.97

4) Audit Class “A" Class Since Beginning

From the above table it can be seen that the sales of Warana Bazaar is

growing continuously with the increase in net profit from the year 2001-02

to 2006-07. Warana Bazaar has got Audit Class “A” since beginning.

61 | P a g e

Financial Assistance from the Government:

TABLE NO: 15 (Rs. in Lakhs)

Sr.

No

Bra

nch

es

Sh

are

Cap

ital

Lo

an f

or

furn

itu

re

Fu

rnit

ure

Su

bsi

dy

Lo

an f

or

Go

do

wn

Go

do

wn

Su

bsi

dy

Man

ager

ial S

ub

sid

y

1 Warananagar 10.00 2.625 0.875 0.75 0.25 0.502 Vadgaon 05.00 1.125 0.375 ** ** 0.203 Retail Outlet 24.20 08.65 4.500 ** ** 2.35

From the above table we can see that the total amount of financial

assistance from government to different branches of Warana Bazaar for

different purposes like godown, furniture, etc. was Rs. 61.40 Lakhs from

which the amount refunded up to 31/03/2007 as per installment given was

Rs. 45.53 Lakhs.

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4) Total Sales:

TABLE NO: 16

Total SalesYear Rs. in Crores

1993-94 20.391994-95 25.291995-96 28.441996-97 31.111997-98 32.641998-99 37.621999-00 41.562000-01 44.132001-02 46.362002-03 47.222003-04 51.072004-05 61.442005-06 68.862006-07 80.002007-08 81.67

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Figure: 4

From the above graph we can see that the amount of sales from the

Warana Bazaar including the two departmental stores and the other retail

outlets is continuously increasing from 1993 upto 2008. This is due to the

different features of Warana Bazaar which includes cheaper rates, quality

produce, easily available at doorsteps, different schemes and good after

sales service. Due to this the level of satisfaction of customers has been

increased from the services provided by Warana Bazaar. Due to this the

customer loyalty towards Warana Bazaar has been increased.

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6) Total Income:

TABLE NO: 17

Total Income:Year Rs in Lakhs

1993-94 117.081994-95 137.941995-96 1431996-97 1791997-98 2061998-99 2521999-00 2722000-01 2942001-02 308.792002-03 335.172003-04 328.42004-05 352.582005-06 391.52006-07 425.242007-08 485.53

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Figure: 5

B. WARANA BANK:

1) Performance Highlights:

TABLE NO: 18

Performance HighlightsAmount in Lakhs

Particulars 2005-06 2006-07 2007-08Paid up Share Capital 610.09 705.53 793.92Total Reserves and Funds 1233.64 2002.61 2103.76

Total 1843.73 2708.14 2897.68Working Capital 29253.71 30115.62 35897.14CRAR 9.63% 11.60% 11.68%Deposits 26671.08 26687.69 32198.14Loans 16689.66 17726.54 20123.75Investments 10137.33 9833.14 12314.32Total Income 2675.54 2960.23 3205.28Total Expenses 2584.30 2845.89 3056.88

Net Profit 91.24 114.34 148.40Net NPA % 3.81% 3.15% 2.88%Business per Employee 167.42 172.82 198.94Profit per Employee 0.35 0.44 0.56Audit Class “A” “A” “A”

Source: Annual Reports

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2) Loans Sanctioned :

TABLE NO: 19

Loans SanctionedYear Amount (in Lakhs)2000 6682.432001 7762.562002 8050.212003 8538.672004 11379.462005 14714.892006 16689.662007 17726.542008 20123.75

The loans sanctioned by Warana Bank are the result of the timely

repayment of the loans by the farmers. So the amount of loans

sanctioned is increasing year by year due to easy procedure and quick

recovery.

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0

5000

10000

15000

20000

25000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Loans Sanctioned

Amount

Figure: 6

3) Profit Earned :

TABLE NO: 20

Profit EarnedYear Amount (in Lakhs)2001 052.522002 064.952003 081.692004 104.712005 071.122006 091.242007 114.342008 148.40

From the above graph we can see that the profit level of Warana Bank is

continuously increasing year by year. In the year 2001 the profit earned

was Rs. 52.52 Lakhs and now the profit earned in the year 2008 is Rs.

148.40 Lakhs.

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Figure: 7

4) Working Capital:

TABLE NO: 21

Working CapitalYear Amount (in Lakhs)2000 10901.302001 12872.782002 14495.672003 15959.032004 19889.702005 24746.012006 29253.712007 30115.622008 35897.14

Figure: 8

The working capital requirement of Warana Bank is also increasing year

by year which results in the increasing level of profit.

5) Deposits:

TABLE NO: 22

DepositsYear Amount (in Lakhs)

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2000 9453.522001 11366.692002 12559.862003 13808.512004 17254.712005 22262.092006 26671.082007 26687.692008 32198.14

From the above graph it is clear that the deposits from the members are

gradually increasing year after year.

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Figure: 9 DEPOSITS

Objective 1:

To study the role of leadership in starting up of Warana Bazaar

and Warana Bank and its progress.

Founder

SAHAKARMAHARSHI LATE SHRI.V.A. Alias TATYASAHEB KORE

(1914-1994).

• A freedom fighter and social reformer.

• A close associate of Former Dy. Prime Minister Late Yashwantrao

Chavan.

• A strong believer in Co-operative movement.

• A great visionary who believed in "Rural Development through Co-

operative Movement."

• A leader who changed barren land into a prosperous area

comprising of 80 villages by establishing Warana Co-operative

Complex.

• He deeply studied on each and every aspect of projects before

applying his thoughts.

• He was a person with a long term vision.

• He used to encourage the people for their development by helping

them to start small businesses due to which the standard of living of

people improved.

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• He had very much attachment towards doing any work and he

struggled for the accomplishment of such a work.

• He had no political interest in any of the organization within the

complex.

• He had no personal interest during his work. He just worked for the

upliftment of the rural people.

• Each time he concentrated on the aspects like planning, organizing,

and coordination in any organization.

• Also he concentrated on the idea creativity and always he accepted

newer ideas from the professionals, friends and other people

regarding the developments in Warana Valley.

Warana Co-operative Sugar Factory:

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 Shri.

Tatyasaheb Kore, a man with great vision and commitment towards the

upliftment of the poor. Shree Warana Co-operative sugar factory was

founded in the year 1956. Warana Co-operative sugar factory has the

best proved many times Co-operative sugar factory 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 Tatyasaheb Kore has done such a

Herculean task within a short span of 60 years.

Sugarcane was the main crop cultivated by the farmers in the region of

Warana Valley. The farmers use to cultivate sugarcane for the purpose of

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production of jaggery, because there were no such techniques available

for the extraction of sugar from sugarcane in the surrounding areas. So

the farmers used to depend on the production of jaggery and sell it. The

farmers were not able to fetch appropriate price for jaggery which did not

cover their cost of production of sugarcane. Sometimes the farmers used

to burn the crop of sugarcane due to low market prices for jaggery. This

condition was seen by Shri. Tatyasaheb Kore. He thought that the farmers

should get higher prices for sugarcane and the cost of production should

be covered. An idea stuck in his mind to start a co-operative sugar factory

for the people. He got this idea to start the sugar factory from the Pravara

cooperative sugar factory of Pravaranagar. His plans were supported by

the Government at that time. He was helped by Former Dy. Prime Minister

Late Yashwantrao Chavan to convert his dreams in truth. There were

many problems during the establishment but Tatyasaheb didn’t stop his

work. He faced those problems firmly. Later on the people realized the

importance of work done by Tatyasaheb and then they went on with him to

carry forward and complete the task.

The successful establishment of a co-operative sugar factory in 1959

completely revolutionized the life of Warana. Today it is the backbone of

this complex. With this factory Tatyasaheb Kore and his magnificent team

touched the lives of the entire weaker section. Through this co-operative

sugar factory the downtrodden started growing rich and their life standards

were updated. The working efficiency has broken all the existing records in

the long-standing Indian history of sugar industries. This co-operative

sugar factory has bagged first prize for its best technical efficiency in the

year 1988-89 at the National Federation of Co-operative Sugar Factories

Ltd. New Delhi. In 1991-92 it has also been awarded by Vasantdada

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Sugar Institute, Pune for its best technical efficiency in Southern region of

Maharashtra. The sugar factory has also bagged many prizes from the

National Federation of co-operative sugar factories Ltd., New Delhi.

Warana Co-operative Complex’s total growth is dependent on this sugar

factory. This is parent unit from which Warana is drawing inspiration and

enthusiasm for its overall growth. Every effort is being put to make the

sugar factory an ideal one. His dream was to bring the people in the 80

villages in and around Warana Valley above poverty level. To make

available the irrigation facilities, he started irrigation schemes. He forced

the government to construct dams and bunds over the Warana river.

Warana Bazaar:

The dream for starting the Warana Bazaar was dreamed by Tatyasaheb

Kore before 25 years. But he was not the person who only dreamed, but

he was on who brought the dreams into reality. For this he used to wait for

appropriate time to come and the appropriate person to be identified. He

had the powers and ability to start the consumer co-operative but he knew

the pros and cons. So he waited for 25 years. Luckily at that time there

was scheme of National Co-op. Consumers Federation Ltd. to start co-

operative consumer stores in the rural areas in India. The consultancy and

promotional cell of the federation identified Warananagar as the

appropriate place. Before starting any project in Warana Valley, it would be

pre planned. When he visited Italy and Japan for the purpose of visit to the

paper mills, he visited different shopping malls during his leisure time and

applied some ideas for the development of Warana Bazaar.

The dream of starting Warana Bazaar came into existence on 2nd April,

1978. At that time Shri. Tatyasaheb got an honest and reliable person for

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Warana Bazaar. He was Mr. Vijay Kesarkar. He was the first General

Manager of Warana Bazaar. The aim to start Warana Bazaar was that, the

people in the Warana Co-operative Complex should get the essential

goods at reasonable rate and better quality at one place. The Warana

Bazaar was started on three major principles i.e. quality material, assured

weight and minimum price. The main objective to start the store was to

make available the essential goods at the doorsteps to the members,

farmers and workers working in the nearby areas like dairy, poultry, sugar

factory, etc. The Warana Bazaar branches were helpful in the distribution

of the sugar to members at the rate of Rs. 2/- per kg upto 7 kg per

member per month. It saved much time and energy of farmers to go to the

factory and get sugar. Tatyasaheb expected that every common man

should remain satisfied. There was much opposition of the merchants and

traders during the establishment. Merchants and traders used to divert the

minds of people by saying that it was impossible to start up such a kind of

Bazaar. But still he managed the people and he was successful in

attracting the people towards Warana Bazaar.

Warana Dairy:

With the sole intention of supplementing the income of zealous farmers a

great idea of dairy farming was put forth in the minds of enthusiastic team.

This resulted in the birth of the Warana Dairy, in 1968. This white

revolution has spread to all other 78 surrounding villages and added

revenue of Rs. 150 crores per annum. The aim of starting the Warana

Dairy was that, Tatyasaheb thought that there should be a secondary

business of the farmer which would support the agriculture business. So

the farmers were supplied with cattle initially and they were helped to

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maintain these cattle for their feeding and other day to day activities like

vaccination, etc.

The dairy plant has a capacity to handle more than 300,000 litres of milk

of which 100,000 litres can be converted into milk products. A clean and

efficient management of dairy brought the proud products of Warana like

Warana pasteurised Milk, Milk Powder, Ghee, Butter,

Shrikhand, Amrakhand, Lassi, Cheese, and Strawberry Desert etc. These

products once tasted chase the taster. The dairy has made its strides all

the way.

The turnover for the year 1997-98 was Rs. 138 Crores. By selling 2035

tonnes of Shrikhand in the year 1998, Warana reached a new record of

maximum selling of Shrikhand in India. For its qualitative and quantitative

excellent performance dairy has acquired an ISO 9002 Certification in

record time of three months.

M/S. Cadbury India Ltd. has joined hands with Warana Dairy and started

production of Bournvita, Drinking chocolate and Cocoa Powder. "Warana

Stymena" - a malted milk product has bagged a mammoth order of 550

metric tonnes from the Indian Army. Even the 60% of total production of

the Cadbury India Ltd.'s Bournvita is produced from Warana Dairy. This

simply reflects the quality and efficiency of the dairy. Warana Dairy has

won many awards for its quality products and efficiency. The dairy, in

future, has ambitious plans to venture into products like branded cheese,

pasteurised butter, beverages and ice creams. This will surely bring many

credentials and laurels to Warana.

Warana Cattle-feed division is producing the quality cattle feed, which is

supplied to the farmers for their cows and buffaloes, at subsidized prices.

• Lassi: "Warana lassi" The all season drinks its most popular drink from Warana.

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• Shrikhand: Largest manufacturer & seller of Shrikhand in four flavors Badam Pista, keshar, mango & Elachi.

• Ghee: Ghee is a quality product from Warana available in different packing sizes.

• Cheese: The products Mozzarella cheese, processed cheese.

• Butter: Salted butter, white butter & yellow butter are the best products.

• Milk: Milk & milk products from India like milk powder, cheese, paneer, ghee, butter, and lassi.

Warana Bank:

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

aim of starting the Warana Bank was to make available credit for the

farmers for land development, purchasing machinery, seeds, pesticides,

fertilizers, etc in easy way. It was a major challenge for Shri. Tatyasaheb to

gather the capital required to start the bank. He gathered the amount of

Rs. 1 Lakh and to be paid to the government to register the bank within 4

days. The member’s along with Tatyasaheb collected the amount and paid

it to government and got the bank registered within 4 days. 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 took shape in 1966. It is creating the banking mind in the

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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.

Warana Educational Complex:

Preparing the mass to march towards 21st century. Education alone can

revolutionize education alone can create awareness; education alone can

transform the lives; and education alone can make the mass to march

ahead. With an ideal idea of building stronger India, Shree Warana Vibhag

Shikshan Mandal was born in 1964. Within few years of its establishment,

it has made a great impact on the minds of the youngsters, and it is

achieving its goals with rapid strides. Under the roof of the Shikshan

Mandal many educational institutions are running which are:

SHREE WARANA VIDYAMANDIR

An ideal school for an ideal valley with an ideal idea. Shree Warana

Vidyamandir is offering education in Marathi medium from Lower KG to

4th standard. The school emphasizes on character building and discipline.

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SHREE WARANA VIDYALAYA

A model for Gurukul System. Shree Warana Vidyalaya, which is a

residential school from 5th to 10th standard, has attracted several people

for its unique educational system. Getting the admission at the residential

school is becoming a prestigious issue, which speaks the standard of the

school.

TATYASAHEB KORE ENGLISH ACADEMY

Preparing the kids to the modern roaring technologies of the world. To

compete anywhere in the world, today, a disciplined English medium

education has become essential. To prepare the kids of the Warana valley

to the forthcoming challenges, Tatyasaheb Kore English Academy has

started functioning since 1994. It has English medium education starting

from lower Kinder Garten to High school level.

TATYASAHEB KORE MILITARY ACADEMY

Unique of its kind. A unique kind of Sainik School was established in 1997

to teach the individual, the necessity of disciplined education. In its

preliminary stages itself, it has achieved many successes with its

disciplinary acts. This Sainik School is striving to prepare the students who

can entirely take up the responsibility of protecting their Nation and

motherland.

YASHWANTRAO CHAVAN WARANA MAHAVIDYALAYA

Inspiring the rural youth. Yashwantrao Chavan Warana Mahavidyalaya

with its Arts, Science and Commerce faculties is attracting the rural youth

and guiding them to shape their future. With its highly qualified staff it is

commanding respect from the people around.

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TATYASAHEB KORE INDUSTRIAL TRAINING INSTITUTE

Quenching the thirst of the technical mass. An industrial training institute

[I.T.I.] was established with the sole intention of imparting the technical

education to the rural youth who have passed 10th standard. It is offering

training to the students in the field of Welding, fitting, electrical and sheet

metal. After the completion of the course the practical training is also given

to the students in Training Cum Production Centre [T.C.P.C.]. Soon it is

planning to start Machinist and Turner courses.

TATYASAHEB KORE TRAINING CUM PRODUCTION CENTRE

A laboratory where things take shape. A Training Cum Production Centre

[T.C.P.C.] was set up to absorb the newly trained youth in I.T.I. Quality

based materials take shape in this workshop. The youth after few years of

practical training in TCPC are ready to face the challenges of the practical

field. Shortly it is proposing to have a tie-up with M/s. Godrej & Co. for

quality products.

TATYASAHEB KORE INSTITUTE OF ENGINEERING TECHNOLOGY

Shouldering the responsibility of technicalities of technology and to bring

the technical education to the doorsteps of the rural mass, Tatyasaheb

Kore Institute of Engineering and Technology [T. K. I. E. T.] was

established in 1983. The Institute is approved by All India Council for

Technical Education, New Delhi and awarded “A " grade for its overall

achievements in the field of Technical Education. The institute with its

Civil, Chemical, Electronics and Mechanical Engineering undergraduate

disciplines has made a stupendous growth over the years. Institute is also

offering even postgraduate course in Electronics Engineering (Vocational)

and Chemical Engineering (Regular). The Institute is planning to add the

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Computer Engineering, Information Technology and Biotechnology

engineering disciplines to its wings. And also planned to start post

graduation course in Civil Engineering.

Every member in the family should be literate and educated was the

dream of Shri. Tatyasaheb Kore. So he established educational complex.

Today the Warana Educational Complex is considered one of the top

educational complexes.

Warana Poultry:

Every farmer's family should have small poultry, which can supplement the

additional income. This was the dream of Late Shree Tatyasaheb Kore

and he advanced to achieve the same. The result is that today around 500

poultry units are working. Central poultry unit was set up to provide layer

birds, feed, veterinary facilities and marketing of egg. The farmers were

given training in scientific rearing of birds, which help them to maintain

their own poultry unit. Today Warana is successfully producing more than

13.2 million eggs per annum.

A leadership self assessment activity was conducted in Warana Bazaar

wherein the leaders of Warana Bazaar and Warana Bank were assessed

for the level of preference or comfort with leadership characteristics and

skills. In this 50 characteristics and skills of leader were mentioned like

communication skills, honesty, decision making power, etc. and those

were rated as very strong, moderately strong, adequate, moderately weak,

and very weak. The maximum score was 250 and the minimum score was

50. The evaluation was done for maximum scores. It was observed that

the leaders who are at present leading the organizations scored maximum

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which shows that they are well on their way to become a leader. They

believe that there is opportunity for growth by improving the relationship

with the employees, farmers, and all others who are directly or indirectly

related to Warana Co-operative complex. Also the leaders they like to

learn newer things and try to search for newer opportunities.

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Objective 2:

To identify the competitive advantages of Warana Bazaar and

Warana Bank Vis a Vis the other retail outlets and the banks.

What is Competitive Advantage?

A company’s ability to outperform its competitors (earn higher profits). Any

advantage a company has over its competitors because it can do

something which they cannot or it can do something better than they can.”

An advantage that a firm has over its competitors, allowing it to generate

greater sales or margins and/or retains more customers than its

competition. There can be many types of competitive advantages

including the firm's cost structure, product offerings, distribution network

and customer support.

These include:

• Providing products at low cost

• Differentiating features

• Serving unique needs

• Expertise

• Resource strengths

• Capabilities to do new things

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Competitive advantages give a company an edge over its rivals and an

ability to generate greater value for the firm and its shareholders. The

more sustainable the competitive advantage, the more difficult it is for

competitors to neutralize the advantage.

The principle of “Co-operation Amongst the Co-operatives” is incorporated

in different organizations in the Warana Cooperative Complex. Tatyasaheb

used to say that “Money saved is equal to Money earned”. According to

this principle the money saved of the people in and around Warana Valley

reaches upto the amount of rupees 12 crores.

There are two main types of competitive advantages: comparative

advantage and differential advantage. Comparative advantage, or cost

advantage, is a firm's ability to produce a good or service at a lower cost

than its competitors, which gives the firm the ability sell its goods or

services at a lower price than its competition or to generate a larger

margin on sales. A differential advantage is created when a firm's products

or services differ from its competitors and are seen as better than a

competitor's products by customers.

In the case of WARANA BAZAAR the competitive advantages

identified which generate greater sales or margin and retain customers

were as follows:

• As far as the cost advantage of Warana Bazaar is considered over

its rivals, the Bazaar has direct contacts with the producers,

processors and different FMCG industries. By taking the advantage

of these contacts, Bazaar procures the goods directly from these

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producers or processors. This direct procurement from industries

minimizes the cost of goods due to shortening the marketing

channel and reducing the middlemen’s commission.

• Also the supply chain of Warana Bazaar is very efficient by which

the goods are made available for the customers as per their needs

at right time, in right quantity and at right place with best quality.

• The forecasting of demand for the goods is carried out taking into

consideration different factors like seasons, festivals, previous

years demand, etc so that the inventory level to be maintained for

right kind of goods and which can be made available to the

customers.

• The products offered by Warana Bazaar at its two departmental

stores and other branches and franchisees is same all over as per

the price list generated by the head office.

• The other characteristic of Warana Bazaar is that, when there is

rise in the price for the goods in the market, the increase in the

price level of the goods is not immediately informed to the farmers

and the sale of the goods is carried on as per the previous rates but

when there is price fall in the market for the goods, immediately the

farmers are informed of the price fall and they are sold goods at the

lower or reduced prices. This is the strategy used by Warana

Bazaar to retain the existing customers and attracting new

customers.

• Also some of the goods like edible oil are private labeled and sold

by the name of Warana Bazaar.

• Most of the procurement of the foodgrains is done from the farmers,

so quality material is obtained.

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• As far as the differentiations based on better services are

considered the services provided by Warana Bazaar to their

customers is best. Each and every customer is welcomed at the

entrance of the Bazaar. Due to this respect towards the customer is

shown and the proverb “Atithi Devo Bhava” which means

“Customer is God” is proved. Every customer is treated friendly.

They create a feeling in the mind of the customer that the Bazaar is

for their service and they have given a chance to the Bazaar to

provide them service.

• Queries and problems of customers are solved by providing best

services; the customers are guided by the staff during the

purchase.

• The after sales service of Warana Bank is also best. There are no

such complaints registered yet regarding the after sales service.

• Home delivery services are also provided by Warana Bazaar.

• Credit Facility for the members of Warana Co-operative Complex.

• Different schemes are launched by Warana Bazaar during festive

seasons like Diwali, Dassera, and Akshay Tritiya, for bulk

purchases.

• Goods are provided at discount rates or discount coupons are

given to the customers on purchase of goods worth Rs. 250/-.

• Exhibitions of different cereals and pulses is arranged in the

complex like “Tandul Mahotsav”, “Gul Mahotsav”, “Dal

Mahotsav”, etc. which increases the overall sales in these

exhibitions.

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• The customers are also made aware of the fake and spurious

goods in the market by arranging the awareness programmes like

“Ashihi Bhesal Ashihi Chalakhi”.

• The customers are provided goods in the packaging suitable for

them i.e. 250g, 500, 1 kg, 5 kg, etc.

• The Warana Bazaar brand itself shows the quality goods at

cheaper rates.

• Captured majority of market share in rural areas.

In the case of WARANA BANK the competitive advantages identified

over its rivals which generates greater margins and retain customers are:

• Proper distribution of profits.

• The customers of the bank are provided loans at lower interest

rates.

• The procedure for sanctioning loan is easier than the other banks.

Minimum number of documents is required.

• The installments for repayment are as per the feasibility of the

farmers to repay them.

• 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

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problems of 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.

• Captured majority of market share in rural areas.

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Objective 3:

To provide a SWOT analysis of the functioning of Warana

Bazaar and Warana Bank besides, a future perspective of the

same.

SWOT Analysis of WARANA BAZAAR:

Strengths:

• The Warana Co-operative Complex is clustering together itself. It is

the strength of Warana Bazaar.

• The Warana Co-operative Sugar Factory which is the mother

institute of all other co-operatives is also the strength and backbone

of the Warana Bazaar.

• The cooperation of Management Body i.e. Chairman, Vice-

Chairman and Directors of Warana Bazaar.

• The competitive prices of products of Warana Bazaar as compared

to the rivals.

• Experienced personnels in each and every department.

• Low operating cost of the organization including overhead capital

expenses.

• Warana Bazaar pattern has become a highly developed pattern

which is employed in various other co-operative bazaars.

• Brand image in the community.

• Loyal customers.

• Strong and well built relations with different producer organizations.

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• Highly experienced and visionary management body and

management professionals i.e. General Manager, Purchase

Manager, Accounts Manager, Sales Manager, etc.

• Well designed and structured marketing channel.

• Well defined organizational setup. Authorities and responsibilities

are delegated to each and every individual at each level in the

organization.

• Marketing strategies are highly structured considering the rural

customer base and also changing with changing environment.

• The price and quality of the products in Warana Bazaar speak i.e.

the word of mouth publicity.

• No political involvement in the operations i.e. the authorities are

delegated to the respective organizational heads in the co-

operative complex i.e. General Manager in Warana Bazaar so that

there should be efficiency in the working of organization.

• Professionalism in serving the people at large.

• Captured majority of market share in the rural areas within the area

of operation. If the bazaar plans to start a branch at any place, it is

just a job of 3 days for the management.

• Well developed network of 40 branches and 6 franchisees.

• Continuous knowledge upgradation of managerial personnels by

exposing them to different seminars and visits i.e. continuous

learning.

• Proper control over maintaining the inventory level and the bazaar

is trying to maintain zero inventory level.

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• Vilasrao Kore Consumer Co-operative Training Centre for training

the employees.

• Timely payment for goods procured which maintains good

relationship with the producers or the suppliers.

Weaknesses:

• Training of manpower available in rural areas has become a

rigorous job (increasing their IQ level, training for sales, etc.)

because the consumer demands for different services are

increasing.

• The organization personnels are not accustomed to use the latest

technologies i.e. use of computers, internet by the professionals

(not more proficient due to heavy work schedule and coordination).

• Overstaffing in various departments.

• Under communication of branch managers with the head office i.e.

communication between the branch manager and the head office

is lacking for some sort of requirements or orders.

• Less devotion towards work of different personnels in the

organization.

Opportunities:

• Demand for Warana Bazaar branch at every outskirt of district and

also beyond district places.

• Developing the convenient shopping stores chain of retailing in

India.

• Increasing the number of products range.

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• Private labeling and its expansion is also an opportunity for Warana

Bazaar.

• It is seen that there is no automobile service station in the nearby

areas. Therefore it is an opportunity to start a service station in the

area.

• There is scope to keep perishable commodities in Warana Bazaar

like vegetables, fruits, etc. for selling.

Threats:

• Political changes in Warana Co-operative Sugar Factory, Warana

Dairy, etc which largely affects the development of Warana Bazaar.

• Big retail chains are planning to target the rural areas to start their

operations like Reliance Fresh, Tata Kisaan Sansar, Godrej Adhar,

etc. which may compete with Warana Bazaar.

• Private entrants may imitate the policies of Warana Bazaar to

attract the customers. This condition has been already started by

small retailers and they compete up to cut throat level in the festive

seasons.

• If there is entry of any private retail chain, and if they offer services

better than Warana Bazaar, then the customers may get diverted.

Future perspective of Warana Bazaar:

In future Warana Bazaar is planning to start bar code system in all

branches so that it will become easy to make bills efficiently and

correctly.

Also Warana Bazaar is planning to make the two departmental

stores air conditioned so that it will create good ambience.

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The future of Warana Bazaar is very much bright in coming years.

Warana Bazaar has already created a brand image in the minds of

the people. The people have become very much familiar with

Warana Bazaar and have become loyal towards the bazaar.

Bazaar should make use of this advantage for the expansion of

Warana Bazaar i.e. the expansion of departmental stores in its own

infrastructure.

SWOT Analysis of WARANA BANK:

Strengths:

• Customer Loyalty.

• Image of Warana Bank in the Market.

• Captured majority of share in rural areas.

• Well developed infrastructure.

• Manpower availability.

• Highly visionary Management Body.

• Well developed network of branches.

• Continuous upgradation of knowledge of managerial personnel’s by

exposing them to different seminars, visits, etc.

Weaknesses:

• Repayment of loans is not achieved in time.

• No loans can be given over exposure norms.

• Efficiency of employees.

• Attrition rate.

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Opportunities:

• Core Banking.

• Internet Banking.

• Increasing number of Biometric Cash Dispensing Machines

(ATM’s).

• Expansion of the network of branches.

Threats:

• Restrictions from RBI for Co-operative Banks.

• Difference between Nationalized and Co-operative Banks.

• Observing the failure condition of the other co-operatives, the

farmer members are withdrawing their accounts.

• Investment in government securities is compulsory. But due to

recession the profit is in the direction to decrease. So it has

become a threat for the bank to invest in government securities.

Future perspective of Warana Bank:

a. In today’s modern field of banking the people are in need of quick

services. So for this the bank is going to start Core Banking Solution.

The importance of core banking is increasing day by day. Due to the

core banking solution system, the information from the branches can

be easily transmitted to the main branch in short time, due to which

the processing will become efficient. To get benefit of this system, the

bank has completed work of Data Centre building and the interior

work has been finished at Kolhapur. Initially some of the urban

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branches will be connected to this Data Centre. After observing the

results, the other branches will be connected later on.

b. The bank has started the Biometric Cash Dispenser (ATM) service in

Kolhapur and Warana areas in 3 branches. Warana Bank is the first

bank to give such type of service to the people in rural areas and the

bank is trying to give this service in maximum branches.

c. Observing the current economic status and thinking of the new

economy, there should be many changes made in the economy

regarding the banking sector. The coming years will be challenging

one for banks for which the banks should be ready to face those

challenges by using newer technologies, efficient use of available

manpower.

d. It has become a challenge for the bank in today’s competitive age to

keep up its position which it is at current stage i. e. “A” grade.

e. In future the bank is planning to open up new branches at Pune,

Satara, Bambavade and Miraj.

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Objective 4:

To know the response of customers towards the Warana

Bazaar.

TABLE NO: 23

Frequency Table for PopulationParticulars Frequency Percentage

Male 38 63.33Female 22 36.67Total 60 100

Figure: 10

When the customer satisfaction survey of 60 farmer members was

conducted in the areas of Warana Bazaar, it was observed that only 37%

of female members responded to the survey and rest 63% male members

responded to the survey.

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TABLE NO: 24Frequency Table for Age Group

Age Group (Yrs.)

Frequency Percentage

Below 20 0 020-30 18 3030-40 25 41.66666667

Above 40 17 28.33333333Total 60 100

Figure: 11

From the survey it was observed that out of 60 members, majority of the

customers i.e. about 42%, visiting Warana Bazaar were in the age group

between 30-40 years, 30% of the customers were of the age group

between 20-30 years and about 28% customers were of the age group

above 40 years.

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TABLE NO: 25 Qualification

Qualification Frequency PercentageIlliterate 12 20

12th pass 35 58.33333333Graduate 12 20

Post Graduate 1 1.666666667Total 60 100

Figure: 12

Considering the qualification of the customers, it was observed that out of

60 members about 58% customers are 12th pass, 20% customers are

Illiterate and 20% customers are graduate. Only 2% of the customers are

post graduate.

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TABLE NO: 26 Monthly Expenses

Monthly Expenses Frequency Percentage500 11 18.33333333

500-1000 20 33.333333331000-2000 25 41.666666672000-5000 4 6.666666667

Total 60 100

Figure: 13

From the survey conducted of 60 members regarding the monthly

expenses on purchase of goods from Warana Bazaar, it was observed

that about 42% customers purchased goods of Rs 1000/- to Rs. 2000/-

per month, while about 33% customers purchased goods of Rs. 500/- to

Rs. 1000/- per month and about 7% customers purchased goods of Rs.

2000/- to Rs. 5000/- per month. The remaining 18% customers purchased

goods of Rs.500/- per month. These were the customers which included

the college students, the people below poverty level.

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TABLE NO: 27Benefits from Warana Bazaar

Benefits Frequency PercentageReasonable Rate 57 95

Good Quality 60 100Variety Choices 59 98.33333333Assured Weight 58 96.66666667Credit Facility 1 1.666666667At door step 55 91.66666667

Surveying the customers for the benefits they get from the purchase from

Warana Bazaar it was observed that 100% of the customers were

benefited from the quality products they purchase, about 98% of

customers were benefited by getting variety of choices in purchase of

goods, 97% of customers were benefited by getting goods with assured

weight, 95% of customers were benefited by the reasonable rates of the

goods, 92% of customers were benefited by getting the goods at their

door step. While only 2% people were benefited by the credit facility

because the credit facility is available only for the members.

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Figure: 14

TABLE NO: 28 Display of Goods

Particulars Frequency PercentageYes 56 93.3333333

To some extent 4 6.66666667No 0 0

Total 60 100

Figure: 15

When the customers were surveyed for the display and arrangement of

goods in Warana Bazaar, 93% customers were satisfied with the display

and arrangement of goods in Warana Bazaar. About 7% customers were

satisfied to some extent with the display and arrangement of goods. There

was a suggestion for the display of ayurvedic medicines with the amount

to be consumed at a time and also the purpose for which it has to be

consumed. Also one customer suggested changing the outer showcase

displays as those were too old.

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TABLE NO: 29

Product Mix Satisfaction

Particulars Frequency PercentageYes 58 96.6666667

To some extent 2 3.33333333No 0 0

Total 60 100

Figure: 16

When the customers were surveyed for the product mix satisfaction they

get from Warana Bazaar, it was seen that about 97% of the customers

were satisfied with the product mix available in Warana Bazaar; only 3%

were satisfied to some extent.

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Chapter V

Findings and Recommendations

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Findings:

a. After studying the progress of Warana Co-operative Complex, it was

seen that the development just matched the development of South

Korea’s Lucky Gold Star Group which started its development with a

cosmetic factory which continued with development of plastic industry

and reached upto manufacture of satellite communications. Similarly

the development of Warana Co-operative Complex started with the

development of Warana Co-operative Sugar Factory and continued

with the development of other organizations such as Warana Dairy,

Warana Bank, Warana Bazaar, Warana Poultry, Warana Educational

Complex, etc. This was the vision of Shri. Tatyasaheb Kore to establish

such organizations and his role to convert these dreams into reality

was worthy.

b. After studying these organizations it was seen that the authorities and

responsibilities were delegated to the respective organizational heads

and without much political interference due to which any decisions

could be taken effectively and which could develop professionalism.

c. It was seen that the credit facility made available to the customers is

not in the level which it should be.

d. When the study of members was done on the basis of annual reports,

it was seen that the number of members drastically increased during

the year 1993 to 1995

e. The accounts department of both these organizations is working very

efficiently. Each and every branch has a separate auditor who audits

the accounts monthly due to which any defects in the accounts could

be identified.

f. The competitive advantages of Warana Bazaar and Warana Bank over

their rivals are such that those can generate higher sales with higher

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margin and they can retain the existing customers and also attract new

customers.

g. When the SWOT analysis of Warana Bazaar and Warana Bank was

performed it was seen that the strengths of both these organizations

were such that these strengths can be used to take the advantage of

the opportunities available and by taking the advantage of

opportunities the weaknesses of these organizations could be

overcomed. Also the strengths can be used to avoid the threats.

h. When the response of customers was taken towards the Warana

Bazaar, the overall response of customers regarding the services

provided by Warana Bazaar was positive and the customers were

satisfied with the product display and the product mix. Most of the

customers were loyal to the Warana Bazaar because they purchased

goods from bazaar since 10-15 years.

i. By studying the financial aspects of these organizations, it was seen

that these organizations are continuously growing as far as the sales

or income and profit level is concerned. The curve of development has

reached at a peak stage and also there are chances for future

development.

j. The use of mirrors to minimize thefts was very much interesting

concept which is applied in every branch.

k. There were a few complaints from the Agro Service Centre Department

regarding the services provided by them.

Conclusion:

Warana Bazaar and Warana Bank are functioning as envisioned by Shri.

Tatyasaheb Kore and it seems that the future generation of Shri.

Tatyasaheb Kore i.e. Shri Vinayraoji Kore and Nipunraoji Kore, both are

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managing these organizations very efficiently without much political

interference. Thus we can conclude that the future of Warana Bazaar and

Warana Bank is very much bright.

During the customer satisfaction survey few suggestions were given

by the customers:

• The ayurvedic medicines which are kept in Bazaar should be

labeled for their use and the quantity to be consumed.

• The number of employees in some branches should be increased

by calculating the profitability of that branch.

• The area of Warana Bazaar’s main branch should be increased so

that it will become comfortable for the customers to purchase

goods.

• The outer display of Warana Bazaar should be changed and should

be made attractive which will attract more and more customers.

Recommendations:

Warana Bazaar:

1. After the study it was seen that the credit facility given to the

customers was not enough which has to be increased.

2. The area under the departmental stores should be increased to

avoid congestion during the purchase.

3. The exterior of the store should be changed so that the customers

will be attracted for the purchase.

4. In some branches number of employees should be increased to

give better services to the customers.

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5. The store should expand its product range and add newer

categories in it like furniture etc.

6. Bar code system should be immediately applied in different

branches to increase the efficiency of work.

7. The inventory level of branches should be checked time to time so

that the cost on inventory will be minimized.

8. The bazaar should plan for installing close circuit cameras in order

to minimize thefts in the bazaar.

9. The bazaar should pay attention to the Agro Service Centre where

there are few complaints of the customers regarding the services

provided by them to avoid negative publicity.

10.The interface between the producers and consumers should be

improved.

11. The credit facilities should be increased for the consumers

(members).

Warana Bank:

1. Warana Bank should increase the number of Biometric Cash

Dispensing Machines (ATM’s) as early as possible.

2. Warana Bank should use the funds for promoting more local

projects in the area.

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The Reference Matter:

Bibliography

1. Ray G L, Mondal Sagar; Research Methods in Social Sciences and

Extension Education, 1st edition, 1999, Kalyani Publishers, New

Delhi.

2. Kothari C.R; Research methodology, 3rd edition, 1997, Vikas

Publishing House Pvt. Ltd, New Delhi.

3. An autobiography of Shri. Tatyasaheb Kore. [Mi ek Karyakarta(in

Marathi), Vol. I and II].

4. Warana Bazaar, Silver Jubilee Year, 2003.

5. Datta Samar K (2005), “Bonhooghly Fishermen’s Cooperative

Society: Beginning of an Indian ‘Lucky Goldstar?”, Page Number 1.

6. Datta Samar K (2004), ‘My Journey through Cooperatives and

Beyond- In search of a Governance Structure for Stakeholder

Cooperation’, Paper presented to a Symposium on ‘Cooperative

Governance’ at Institute of Rural Management (IRMA), December,

2004.

7. Datta Samar K, Bhate Rucha, Nilakantan Rahul,

(2005), “Cooperative Reforms: Light at the end of the

tunnel?”

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Appendix:

Questionnaire:

Date:

1. Name :

2. Locality:

3. Phone No:

4. Age Group: Below 20 20-30 30-40 Above 40

5. Qualification:

Illiterate 12th Pass Graduate Post Graduate

6. Occupation:

7. Total monthly expenses on domestic goods (Rs):

500 500-1000 1000-2000 2000-5000

8. You like to purchase goods from:

Departmental store Provisional Store Small Retail shop (Warana Bazaar)

9. Which benefit do you get from purchase form Warana Bazaar?

Reasonable rate Good quality Variety choices

Assured weight Credit facility At door step

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10.Do you like to purchase goods by self-service system in Warana Bazaar?

Yes To some extent No

11.Are you satisfied with purchasing in self service shop?

Yes To some extent No

12.Since when did you start purchasing from Warana Bazaar?

13.How far do you like the system of display of goods in Warana Bazaar?

Yes To some extent No

14.Are you satisfied with the staff and sales people in the Bazaar?

Yes To some extent No

15.Are you satisfied with the after sales service of the Bazaar?

Yes To some extent No

16.Are you satisfied with the overall service of the Bazaar?

Yes To some extent No

17.Does Warana Bazaars’ product mix satisfy your all needs with respect to variety and price?

Yes To some extent No

18.Would you like to give any suggestions for Warana Bazaar?

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