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