A

PROJECT
REPORT
ON
“ WOMEN'S CO-OPERATIVE SHRI MAHILA
GRIHA UDHYOG LIJJAT PAPAD”
SUBMITTED BY

MR. Tejas S Waghchaware

MR. Rohit S Shinde

UNDER THE GUIDANCE

OF PROF. K.R. PAWAR

CIVIL ENGINEERING
DEPARTMENT
S.E.S.POLYTECHNIC ,
SOLAPUR
Budhawar Peth, Samrat chowk,
Solapur, PIN - 413002, Maharashtra, India
(APPROVED BY AICTE, NEW DELHI,RECOGNIZED BY DTE,MUMBAI
AND AFFILIATED TO MSBTE,MUMBAI.)
1
2020-2021

2
 ACKOWLEDGMENT

The satisfaction and euphoria that accompanies the successful

completion of any task would be impossible without a profound
acknowledgement of the people whose constant guidance,
encouragement made it possible for us to execute our project with
success.

We are highly indebted to Prof. K.R. PAWAR for his

guidance and constant supervision as well as for providing
necessary information regarding the project and also for his
support in completion of this project.

We express our sincere thanks to Prof.A.A.

BHAWTANKAR (Principal,) and Prof .M.C. MASHYAL
(H.C.E.D) for giving us immense co-operation in completing this
project,“ WOMEN'S CO- OPERATIVE SHRI MAHILA GRIHA
UDHYOG LIJJAT PAPAD”

Finally, our thanks and appreciation goes the menial staff

and other people who have willing helped us out with their abilities.

NAME OF STUDENT:-
MR. Tejas S Waghchaware(3219)
MR. Rohit S Shinde(3220).
 CERTIFICAT
E

This is to certify that project

entitled
“WOMEN'S CO-OPERATIVE SHRI MAHILA GRIHA UDHYOG
LIJJAT PAPAD”

Has been successfully submitted by the following students

MR. Tejas S Waghchaware(3219).

MR. Rohit S Shinde(3220).

HAS BEEN APPROVED IN THE PARTIAL

FULFILLMENT FOR THE AWARD OF DIPLOMA (
CIVIL ENGINEERING)
“DIPLOMAINCIVILENGINE
ERING”
BY
MSBTE,MUMB
AI.
PROF.K.R.PAWAR PROF.M.C. MASHYAL

PROF.A.A.BHAWTANKAR PROJECT GUIDE

H.C.E.D. PRINCIPAL
Table of

contents

SECTION 1
LIJJAT IN

GENERAL

> INTRODUCTION.

> HISTORY.

> THE BEGINNING.

> AWARDS HISTORY.

SECTION 2

BASIC PRACTICES & PHILOSOPHY

> BASIC THOUGHT.

> THREE GOLDEN RULES.

> PHILOSOPHY THAT GUDIDES LIJJAT.

SECTION 3

> CULTURE.

> ROLE IN WOMEN EMPOWERMENT.

SECTION 4

> ORGANISATION STRUCTURE AND MANAGEMENT

> HOW THE SYSTEM WORKS

SECTION 5

> PRODUCTION & PACKAGING

> PROCESS

> DIVETDIVETRSIFICATIONS
SECTION 6

> MARKET POSITIONING

> ANALYSIS

SECTION 7

> CHALLENGES AND POTENTIAL

> CONTRIBUTION TO SOCIAL SERVICE

> PHILOSOPHY

SECTION 8

> PROBLEMS FACED BY LIJJAT

> PAPAD & THEIR SOULTION

> FACTORS FOR SUCCESS

SECTION 9

> CONCLUSION

> BIBLIOGRAPHY.
 SECTION 1

INTRODUCTION

Be it an evening snack, or a banquet or a meal at home. The Papad finds its due place on
the dining table. No Indian meal is complete without it, and India's biggest Papad success
story is Undoubtedly, Lijjat.

Everyone enjoys 'rags to riches' stories and everyone likes tales of stupendous success
achieved through sheer determination. The story of Shri Mahila Griha Udyog Lijjat Papad
is all that much more.

Shri Mahila Griha Udyog Lijjat Papad, popularly know "Lijjat", is an Indian women's
organization manufacturing different Products of village industries. The organization's
registered office is Situated in Mumbai and it has 69 centers and 31 divisions en different
states. Lijjat is spread all over Indian.

Stared in 1959 with a capital of Rs. 80. Lijjat today has a Annual turnover of around
Rs.315 crore (Rs 3.15 billion), with Rs.12 In exports and has around 42,000employees.
Lijjat is primarily a cottage industry, urban by its origin, that has spread to the rural areas,
It is considered as one of the most remarkable enterprenual initiative by woman that is
identified with women empowerment in India.

Shri Mahila Griha Udyog Lijjat Papad is registered under The KVIC Act- (Khadi & Village
Industries Commission) The Khadi and village Industries Commission (KVIC) is a
statutory organization established in 1956 by an Act of parliament.The main objectives of
the KVIC include skill improvement Providing employment in rural areas, and transfer of
technology, rural industrialization and promoting self-reliance. The functions of the KVIC
are generally to plan, promote, organize and assist in implementation of programmers for
the development of Khadi and village industries.
HISTORY

Lijjat Papad is a women's organization of the women, by the women and for the women. It was
stared in 1959, Girgaum, Mumbai with 7 lady members of the residential tenements of "Lohana
Niwas gathering on the terrace of the building for a function by rolling 4 packets of papads and
the decision to make papads, everyday.Thus Shri Mahila Griha Udyog Lijjat Papad made a
beginning under the Blessing of Shri Chhangantal Karamshi Parekh popularity Known as Pujya
Chhanganlal' who was the member of the Servants of India society and a highly successful social
worker. He was a noble man gifted with down-to-carth ideas.

The turning point of the institution came in 1966 when then Chairman of Khadi & Village
Industries Commission Pujya Uchhangral N. Dhebar visited the Institution and got il recognized
by the Khadi & Village Industries Commission it was also registered under , Bombay Public trust
Act 1950 and also registered under Societies Registration Act, 1860.

The Objective of the institution is to provide employment to the ladies to enable them to earn
decent and dignified livelihood. Any women can render physical work in this institution without
distinction of caste.creed and color and agrees to abide by the Institution can become a member
of the Institution from the date on which she starts workingEvery branch is headed by a
Sanchalika to see the production of the branch. There is Central managing Committee consisting
of 21 members out of, which there are 6 elected , -2 Office Bearers Le President, Vice President, 2
Secretaries and 2 Treasurers.

Another important fact about the Institution is that a male person cannot become its member
and any male employee whether working honorary or on Salary basis has no right whatsoever
over Institution.

Besides Lijjat Papad the institution has other products like Khakhra, Masala, and Vadi. SASA
Detergent Powder & Cakes, Bakery Products, Liquid Soaps. Gehu Atta & Chapattis. At present it
has 69 centers 31 divisions in different states and gives, self Employment to about 42000 sister
member all over Indian. The sales which have amounted to only Rs. 6,196 in the first year.
Le.1959 have already touch the level of Rs. 300 crores which includes Rs. 12 crores of exports.

Lijjat Papad has earned reputation not only in Indian but also in every nook and corner of the
world. The worldwide demand for crisp and alluring Lijjat Papads always keep growing. At
present about 30 to 35 percent production of Lijjat Papad is being exported. The main consumer
countries include U.K., U.S.A. Middle East and also in Singapore, Honk Kong. Thailand Holland,
Australia. Europe. Japan & and other countries.
The Beginning
It all began on 15th March 1959 which was a warn summer day with the sun shining brightly in
the cloudless sky. A majority of the women inhabitants of an old residential building in Girgaum
(a thickly populated area of South Bombay), were busy attending their usual domestic chores
group of seven women gathered on the terrace of the building and started a small inconspicuous
function. The function ended shortly, the result production. This pioneer batch of 7 ladies had th
bait rolling. As the days went by, the additions to this initial group of 7 was ever- increasing. The
institution began grow,It the early days were not easy. The institution had its trials and tribulation.
The Faith and patience of the member were put to test on several occasions they had no money
and started on a borrowed sum of Rs. 80- Self-reliance was the policy and no monetary help was
to be sought ( not even voluntarily offered donations) se werk started on a commercial footing.

Today, Lijjat is more than just a household name for Papad' (India's most popular crispy bread),
Started with a modest loan of Rs 80, these women took its turnover from Rs 6,196 in the first year
to Rs 300 crore in the next decades, involving over 40,000 women on its revolutionary march.

Gandhian business strategy, equally well executed by his followers, late Chhanganial Karamshi
Parekh and Damodar Dattani, who worked tirelessly from behind the scene. Their vision was clear
- an exclusive women's organization run managed by them, a quality product these women had
the expertise to make, and, finally, a work environment which is not competition-driven and
mechanized but based on pure labour and love for the organization and its people, Lijjat is today
guided by separate divisions of advertising, marketing, sales promotion and exports.

There is greater coordination between branch offices (different production and marketing units)
and centralized marking, advertising and exports departments. The cooperative now has annual
sales exceeding Rs 301 crore (Rs 3.1 billion). What's more stunning than its stupendous success
is its striking simplicity. With quality consciousness asthe principle that guided production. Shri
mahila Griha Udyog Lijjat Papad grew to be the flourishing and successful organization that it is

today.
AWARDS HISTORY
• The Institution has received an award from Khadi & Village Industries Commission as a
"Best Village Industry for the period 1998-1999 to 2000-2001.

• On 6 September 2003 the institution received the Economic Times award of

"Businesswomen of the Year 200-2002 for Corporate Excellence"

• In January 2003 it received the award for Best Village" at the hands of Hon'ble Prime
Minister Shri Atal Bihari Vajpayee at new Delhi.

• On 21 December 2005 institution has received has received the "Brand Equity Award at
the hands Hon'ble President of India, DR.A.PJ Abdul kalam presented by PHDCCI at
VIGYAN BHAVAN, New Delhi.
 SECTION 2

Basic thoughts

1. It is a voluntary organization of sisters.

2. The organization is neither for the poor sisters nor for the rich anes-poor Sisters
should remove the thoughts of poverty from should their mind and the rich sisters
remove thoughts of their affluence.

3. It never accepts charity or grant.

4. It believes in running the business wisely and with practice good business ethics with
dealers and consumers.

5. The organization strictly observes the practice of maintaining the the accounts
regularly, writing the books daily and preparing balance sheets every month. 6. The
organization is like a family and sisters run it as if they all belong to the same family.

7. The organization is like a revered place of worship.

8. No one can change these basic thoughts of the organization.

Three Golden Rules

Besides basic principles like self-reliance. co-ownership and faith dignity of labour, the institution
has also formed three Golden Rules"

1. All the rights of the institution must belong to members only.

2. There must be maintenance of "Lijjat" quality at any cost.

3. There must be clean and time bound accounting system.

Philosophy that guides 'Lijjat'

Shri mahila Griba Udyog Lijjat Papad is synthesis of three different concepts namely:

1. The concept of Business.

2. The concept of Family.

3. The concept of Devotion.

All these concepts are completely and uniformly followed in this institution. As a result of
this synthesis, a peculiar Lijjat way of thinking has developed therein.

The institution has adopted the concept of business from the very beginning. All the
dealings are carried out on sound and pragmatic commercial footing quality goods and
sells them at reasonable price.

It has never accepted nor is it ever going to accept any charity, donation, gift or grant
from quarter. On the contrary members donation collectively for good causes from time
to time. Such as construction of houses for Earthquakes affected families of Chincholi
Jogan (Latur) Bhujpur, Kutch etc.

Besides the concept of business the institution has adopted the concept of mutual family
affection, concern and trust which are the 'idée fixe of the members. All the affairs of the
institution are tackled on the very same pattern as a family carries out its own daily
household chares.

But the most important concept adopted by the institution is the concept of devotion.
For the members as well the employees and the well wishers, the institution is never
merely a place to earn one's livelihood. It a temple, a church, a mosque, a gurudwara, a
place of worship to devote one's energy not for his or her own benefits but for the
benefit of all. In this institution work is worship.
 SECTION 3

Culture

Lijjat Patrika, the in-house magazine, is published and circulated for a nominal rate to
those interested in the activities of Lijjat. It is publish in many languages, including
English, Gujarati, Marathi, and Hindi. It has emerged as a strong mode of communication
for information related to significant events and initiatives at Lijjat, in addition to
presenting articles on women.

Member sisters across all branches of Lijjat recite an all religion prayer before beginning
their daily activities. The sisters are free to choose their activities and each activity given
equal importance.

Role in women empowerment

The growth of the Lijjat is often seen in the larger canvas of women and their
empowerment. The organization has undertaken various efforts to promote literacy and
computer education for member-sisters and their families. A literacy campaign for
sisters. began through literacy classes at Girgaum on June 18, 1999. Later, the managing
committee decided to start such class in all its branches from 1980 onwards. Lijjat
started giving Chhaganbapa Smurti Scholarships to the daughters of the member- sisters.

The member-sisters used their organization as a medium to promote their and their
families' welfare. In the Valod centre they set up an educational and hobby centre for the
rural women. Orientation courses in typing, cooking, sewing knitting, and toy making as
well as other courses like child welfare, first aid and hygiene were taught.

In 1979, Lijjat teamed up with UNICEF to organize a seminar in Mumbai on "child Care
and Mother Welfare", as part of the International Year of the child celebrations. In
October 1984, Bhadrahen Bhatt representation Lijjat at the UNISCO sponsored
international workshop on "The role of women in the assimilation and spread of
technological innovation beld at NITIE, Powai. Alkaben Kalia represented Lijjat at the
National level meeting on women convened by National Commission on Self Employed
Women.
 SECTION 4

Organization Structure and Management

In order to ensure that the working of the trust was professional, an organization structure and
certain professional guidelines were put in place. Member-sisters owned the enterprise. Any
women, irrespective of caste or religion willing to work in any capacity. could become a member
by signing a pledge of devotion to the basic tenets of the organization. It was a commitment to

earn legitimate honest income thought wok on a co operative basis.

How the system works

The entire cycle starts with a simple recruitment process. Any woman who pledges to adopt the
institution's values and who has respect for quality can become a member and co owner of the
organization.

In addition to that, those involved in the rolling of the papads also need to have a clean house and
space to dry the papads they roll every day. Those who do not have this facility can take up any
other responsibilities, like kneading dough or packaging or testing for quality.

Packed papads are sealed into a box (each box holds 13.6 kg) and the production from each
centre is transported to the depot for that area. Mumbai alone has sixteen branches and six
depots. Each depot stocks production from the nearby three to four branches roughly about 400
boxes.

In some smaller towns or villages, the branch itself serves as the depot. The depots are our
storage areas as well as pick up points for distributors.
DISTRIBUTION FLOW
CHART
Their distributors pick up the quantity of papad they require and pay cash on delivery because
they pay their hens (members are called bens, or sisters) every day. Since they have an estimate
of the quantity each distributor takes, they produce accordingly. This ensures that they neither
stock inventory nor pay heavily for storage.

They have about 32 distributors in Mumbai. Each distributor picks up an average of 100 boxes
per day from the depot. This is where their job ends. They are not involved in how and where a
distributor delivers as long as he stays within the area they have marked for him.

Generally each distributor has his three-wheeler and about eight to ten salesmen to deliver to
retail outlets within his territory. To select a distributor, they first give an advertisement in
newspapers for the areas they have marked. Members from their marketing division personally
go and check the godown facilities and only on their approval do they appoint distributors.

A distributor pays them Rs150,000 as deposit. They make it clear to them that they must pay on
delivery if they want our distributorship. This system is followed all over India and it works well
for them.

When they discover that there is demand in a particular place, they open a new branch, like the
recently opened one in Jammu and Kashmir. Whether or not they have a centre in an area, their
goods reach there.

For example, they do not have any centre in Goa, but they have appointed a distributor for that
area to ensure that Lijjat papads reach Goa. Their communication with distributors is regular
through monthly meetings where they discuss their problems and also the issues that they may
have about quality, price, reach, etc.

They do not have individual door-to-door salesmen or women selling from homes -- only the
appointed distributor for the area. The same system is followed for other products, but they
may have different distributors and depots for different products.

Exports
Their exports alone account for Rs 10 crore (Rs 100 million). They are not directly involved in
exporting, but recognized professional merchant exporters (who also export other food products)
place an export order.

Only on receiving the full advance through a cheque do they begin production. Because all
exports are done from Mumbai, the supply also comes from here. Export production is of the
same quality as daily production. In fact, they send some of the daily production for export.
 COLLECTION FLOW
CHART

Distributing profits.
They have accountants in every branch and every centre to maintain daily accounts. Profit (or
loss, if any) is shared among all the members of that branch.

They have a committee of 21 that decides how the profits are to be distributed. They generally
buy gold coins - 5gm or 10 gm, depending on the profit. Everyone gets an equal share of profit,
irrespective of who does what work. irrespective of seniority or responsibility.

Even a ben who has recently joined gets the same share as others who have been with us
longer. Each branch calculates its profit and divides it equally among all its members.

Mumbai has 12,000 members, the rest of Maharashtra has 22.000, and Gujarat has between
5,000 and 7,000 members.
 SECTIO

N 5 PRODUCTION AND

PACKAGING PROCESS

The production process begins at 4.30 a.m. in the morning when the entire sister members come
to collect their respective dough. They collect it and go back to their homes and start rolling
rolling the dough. The rolled dough is then dried on a piece of cloth under sunlight. The next
morning the sister members bring these papads back.

In the second stage the rolled papads are send to the quality control department for the regular
quality under the supervision of quality control executive. Lijjat has been maintaining of the same
standard since the day of its existing. The checking of the papads is done in a batch, and if any of
the Papad does not conform to the Lijjat standard then the whole batch is disposed off. The
institution ensures that these defective papads do not reach the market: hence they are disposed
in the sea instead of garbage hin. This guarantees that they never reach the market.

In case of any mistake, the institution not only tries to find out that who has made the mistake,
instead they also try to mistakes is borne by all the sister members, in case of heavy losses, but if
the loss is small er minute then the member who has made the mistake itself bears the less.

The institution itself carries out the packaging process instead of having aboration hers. These
plastic bags are manuf ithout any technical help or machinery: instead it is hand-made. These
employees are also wamen. The packaging department comprises of 70 sister members. The
bags that are used for packing papads arePolpopryin (PP) bags.These bags are manufactured at
a factory situated at Dahisar.
Diversifications
Lijjat has several divisions and manufacturing units:

• Flour Division (Vashi)

• Masala Divisions and Quality Control Laboratory (Cotton Green)

• Printing Division (Cotton Green)

• Advertising Division, Bandra

• Khakhra Division, (Buhari, Valod district)

• Chapati Divisions at Wadala, Borivali, Mulund and Kandivali

• Polypropylene set-up (Kashi-Mira Road)

• Vadi factory (Valod)

• Bakery Division (Valod)

• Detergent Powder and Cake manufacturing unit (Dahisar) and office (Boriovali)
 SECTION 6

Market Positioning
As a business enterprise, the declining sales figure for three consecutive years - Rs 298 crore
(1999-2000), Rs 288 crore (200-2001) and Rs 281 crore (2001-2002), is a matter of concern for
Lijjat management. Some of its home turf in Maharashtra and Gujarat has been captured by a
growing completitive local market. But Lijjat has also expanded to the North Delhi, Punjab,
Himachal Pradesh and, with the latest branch in Jammu, to the Kashmir market as well.

Though each branch is responsible for the marking of its products in the areas allotted to it, the
new centralized marketing offices now procure surplus production from different branches and
market it at an all-India level. This coupled with a healthy upward trend in the export of Lijjat
Papad positions Lijjat as the strongest brand in the Papad industry. The other big brands in the
Papad market are Bikaner, MDH and Saktibhog, but none seem to be able to make any dent in
Lijjat's share of the industry as their core business is not Papad.

Products
Lijjat's manufactures several products, of which the Papad is the most famous:

• Papad (five flavors: lasan, moong, mirch, Punjabi and urad)

• Khakhra

• Appalam

• Masala

• Vadi

• Gehu Attu(Wheat flour)

• Bakery products

• Chapati

• SASA Detergent Power

• SASA Detergent Cake (Tikia)

• SASA Nilam Detergent power

• SASA Liquid Detergent

Pricing
Shri mahila Griha Udyog Lijat papad adopts a Cost Plus Pricing Strategy for all their products.
The Lijjat products are targeted at the middle and lower segments of society. These segments
are highly price sensitive and hence this method of pricing allows them to market their products
extensively.

While calculating the price the following expenses are taken into consideration:

• Cost of Raw material

• Rolling Charges

• Packaging Costs

• Selling Expenses Administrative expenses

A certain makup is then added to these costs to account for the profits.

Promotions
At Shri Mahila Griha Udyog Lijjat Papad, they believe that the best promotion they could possibly
receive is by word of mouth. Therefore they concentrate more on cost effectiveness and quality
rather than on more expensive modes of promotion like advertisements.

Therefore annual expense on advertisement and promotion amounts to Rs. 60 lakes. a mere
0.2% of total turnover. The extremely famous bunny rabbit' campaign continues to be aired on
specific regional channels. For e.g. Alpha Guajarati, Alpha Bengali, Sun ect. They also advertise in
English and regional newspapers.

The distributors also need to be motivated properly, so that they in turn make a greater effort to
sell large volumes of the products to the retailers. Targets are set quarterly for the distributors
i.e. should they exceed this target: the distributor will receive a further 1% discount.
ANALYSIS

SWOT Analysis
Strengths

✓ Sincere Hardwork

✓ Development woman by proding them a living/ employment.

✓ Maintaining the same standard over the last 45 years.

✓ Having a unique status in the country.

Weakness

✓ The institution does not believe in holding any weakness for a permanent or a long
period of time.

Threats

In terms of competition

✓ In the Papad industry, the major competition or threat is posed to the institution by
Ganesh Papad.

✓ In the spices industry, the Haldiram and MDH are the major competitors.

✓ In detergent, there are many competitors like HLL, P&G ect.

 SECTION 7

Challenges and potential

The story of seven illiterate and poor women who borrowed Rs 80 to start a Papad business, and
took its turnover from Rs 6,196 in the first year to Rs 300 crore in the next four decades, involving
over 40,000 women on its revolutionary march, is fanciful at any a well thought-out Gandhian
business strategy, equally well executed by his followers, late Chhaganlal Karamshi parekh and
Damodar, who worked tirelessly from behind the scene. Their vision was clear an exclusive
women's organization run and managed by them, a quality product that these women had the
expertise to make, and, finally, a work environment which is not competition-driven and
mechanized but based on pure labour and love for organization and its people.

Lijjat is today guided by separate divisions of advertising, marketing, sales promotion and
exports. There is greater coordination between branch office (different production and markeing
units) and centralized marking, advertising and exports departments. Transfer of finished
products centralized marketing offices from different branches was worth Rs 113.52 crore and
ad-spend stood at Rs 2.55 crore for 2000-2001.

Contribution to social service

On several occasions, the Lijjat member-sisters have undertaken social service activities such as
distributing nutritious food for poor children, donating money for conducting community
marriage. instituting prize money fore spread of primary education, undertaking blood donation
drive, organizing heath camps, plantation drives and even making donations to Government
bodies. In 1999, the Mumbai City felicitated Smt. Rukminiben B. pawar, Lijjat President, as an
outstanding woman in the field of social work.

Lijjat undertook the rehabilitation Of chincholi (Jogan), the earthquake affected village in the
Latur district of Maharashtra. The institution provided the finance and supervised the work of
construction of fifty-eight houses for the people of the village. Member-sisters donated money
from their daily vanai (wage).

After the 2001 Gujarat earthquake, all the branches of Lijjat gave a total donation of more than Rs
4.8 million, including Rs 1 million from the central office. Lijjat built forty houses for the
rehabilitation of the people of Bhujpur (Bhachau) in Kutch District.
 SECTION 8

PROBLEMS FACED BY LIJJAT PAPAD &THEIR SOLUTION

The papads are prepared in different parts of India, the quality of the water used usually varies,
and so can the quality of final product. To prevent any inconsistencies, Lijjat has its own
laboratory in Mumbai, where the final products are tested and coded.

In the monthly meeting, the quality issue and modifications are also discussed. Currently there
is a problem of fake Lijjat papads being introduced in the market. In June 2001,three persons
are arrested in this connection in Bihar, but the threat exists in the global market also.

With increasing business and other advances, the need for information dissemination and
communication among member sisters at various branches has increased. The monthly regional
meeting, annual general meeting, and All-India convention of branches are held to keep the
members aware of organization activities and strategies, and to discuss issues such as quality
maintenance, production rates, the handling of accounts, and everyday problems to assure a
better work environment.

1) Previously Detergent, along with all the other products of Lijjat was exempt from sales tax.
Recently the Government has passed a new provision, which does not include detergent in the
PCPI (Processed Cereals and Pulses Industties) list of products. Therefore, Shri Mahila Griha
Udyog Lijjat Papad is Libable to pay the Sales Tax for their Sasa Detergent Powder. Negotiation
is currently being carried out with government to exempt this product from Sales tax as well.

2) The rolled papads need to be dried for a certain number of hours. This entire process in done
in the bhagini's' homes. Therefore in the monsoon when I rains it is difficult to dry the papads
outdoor. This now has to be indoors. The 'bhaginis stay in small houses and space is a
constraint hence fewer papads are produced during the monsoon season. This is the reason that
Lijjat does not export in monsoons.

The solution adopted by Lijjat is to provide extra money to the bhaginis during monsoons to
purchase kerosene lamps enable faster drying of papads. Our suggestion is to hire an additional
space during monsoon a central position near the depots, with kerosene lamps where the
bhaginis can come and dry their papads. This will lead to higher production which can be
exported.

3) Lijjat currently exports through merchant exporters and does not involve itself in direct
exporting. We feel they can save on the margin that the merchant exporters make, by appointing
their own distributors in the main countries and this will enable them to reduce cost and increase
profit margin.
Factors for Success

> The merging of ownership with membership has encouraged uniform and
sustained organizational growth.

> The consistent quality of the product has been a primary factor in establishing
and maintaining Lijjat's brand in the market for the last four decades.

> The Sarvodaya philosophy proved vital in forming Lijjat's foundation.

> Lijjat has emerged as an innovative organization in which women from religion.
caste, or class can become members. The pledge and all-religion prayer also
encourage cooperative work among women, irrespective of caste or religion.

> Transparency in operations and nonhierarchical structure has helped in

establishing organizational accountability among member sisters.

> Lijjat encourages its members to give to others whatever they can, instead of
expecting help from others. Lijjat does not accept donations, but gives donations,
which enhances members; self-esteem and pride in their own organization.

> Calling the members "sisters" creates an informal work environment. Frequent
meetings, open interaction, and consensual distribution of tasks reduce the
possibility of disputes resulting from communication gaps and help work to go
smoothly.

> Lijjat provides economic opportunities through a domestic activity. Once involved
in this activity, the women acquire confidence and status as they make money in a
respectable manner. The more enterprising responsible and experienced member
sisters climb the administrative ladder. Lijjat exemplifies a remarkable way of
making leader out of ordinary women.
 SECTION 9

CONCLUSIO

N.
The most interesting lesson managers can pick up from Shri Mahila Griban Udyog Lijjat
Papad, sticking to its core values the past forty years.

The institution thus paves the way for women to become self-reliant and self confident.
In the process Lijjat provides them the platform for improving their status in the society,
which is their justified right.

The ladies are brimming with confidence. Lijjat is an institution which has stood the trial
of time and tribulation and has achieved success because when basic management
principles and uncompromising quality consciousness are applied in conjunction with
sound business principles, there can be only one way for the ladies of the Lijjat-a brighter
and happier tomorrow, the pride and joy of fulfillment.

Lijjat makes almost equal money for its entire people and makes just enough money. No
one would become a millionaire by setting up another Lijjat. If this aspect of Lijjat's
operations is not very good news for machine and money-driven corporate owned by
tycoons, the essential message that Lijjat's success conveys has definitely fired the
imagination of women and rural folks. In many parts of Maharashtra and Gujarat, locally
manufactured and marketed eatables are catching on.

As a business house. Lijjat itself has been trying to rewrite its own success with another
product with varying degree of success. Grounded spices, Khakhra, black pepeer powder,
detergent powder and cake, Vadi, bakery products, wheat filthier are on Lijjat's menu but
Papad with a sales figure of Rs 288 crore remains at the top. Among similar ventures
which came a cropper are incense sticks, leather bags, Tiffin boxes and matchsticks. But
most promising among them is the chapatti division with six branches in Mumbai. Here,
the women come in to work at around seven in the morning and make chapatti as they
are prepared in homes. Packed Lijjat chapatti, four for Rs five, are available at retail shops
in Mumbai. These centers also procure orders from hotels, office canteens, etc. and the
catering in Mumbai includes some big names from the hotel and catering industry. As the
pace of life increases, little time is available to most people in metros like Mumbai to
cook their own food.Next time there is Lijjat Papad on the table, you sure can see a
Chandrasekhar or Suja's dimpled fingers deftly roll out the crisp Papad. It is made with
love and care, just like from their mama's kitchen.
 BIBLIOGRAPHY

• World Wide Web

• www.google.com

• www.lijjat.com

• Information from the Lijjat prospectus

• www.wikipedia.com