A

PROJECTREPORT
ON
“WOMEN'
SCO-OPERATI
VESHRIMAHILAGRI
HA
UDHYOGLIJJATPAPAD”
SUBMI
TTEDBY

MR.Tej
asSWaghchawar
e
MR.Rohi
tSShi
nde

UNDERTHEGUI
DANCEOF

PROF.K.
R.PAWAR

CIVI
LENGI NEERINGDEPARTMENT
S.E.S.
POLYTECHNI C,SOLAPUR
BudhawarPeth,Samratchowk,
Sol
apur,PI
N-413002, Maharasht
ra,
Indi
a
(
APPROVEDBYAI
CTE,
NEW DELHI
,
RECOGNI ZEDBYDTE,
MUMBAIANDAFFI
LIATED
TOMSBTE,MUMBAI.)
2020-
2021

1
 ACKOWLEDGMENT

Thesat i
sfact
ionandeuphori
athataccompaniesthesuccessful
completi
onofanyt askwouldbeimpossibl
ewi t
houtapr of
ound
acknowledgement of t
he people whose constant gui
dance,
encouragementmadei tpossi
bleforust oexecuteourproject
withsuccess.
Wear ehighlyindebtedt oProf.K.R.PAWAR f
orhis
guidance and constantsuper vi
sion as wel
las forpr
ovidi
ng
necessaryinf
ormationr egar
ding t heproj
ectandal
soforhis
supporti
ncompl et
ionoft hi
sproject.
Weexpressoursincer
ethankstoProf.
A.A.BHAWTANKAR
(
Pri
nci
pal
,
)andPr of.M.C.MASHYAL( H.C.
E.D)forgiv
ingus
i
mmenseco-
operati
onincompleti
ngthisproj
ect,
“WOMEN'SCO-
OPERATI
VESHRIMAHI
LAGRI
HAUDHYOGLI
JJATPAPAD”

Fi
nall
y,ourt
hanksandappr
eci
ati
ongoesthemeni
alst
aff
andotherpeoplewhohavewil
l
inghel
pedusoutwit
hthei
r
abi
li
ti
es.

NAMEOFSTUDENT:
-

MR.Tej
asSWaghchawar
e(3219)
MR.Rohi
tSShi
nde(
3220)
.

2
 CERTI
FICATE

Thi
sist
ocer
ti
fyt
hatpr
ojectent
it
led
“
WOMEN'
SCO-
OPERATI
VESHRIMAHILAGRI
HAUDHYOGLI
JJAT
PAPAD”

Hasbeensuccessf
ull
ysubmi
tt
edbyt
hef
oll
owi
ngst
udent
s

MR.Tej
asSWaghchawar
e(3219)
.
MR.Rohi
tSShi
nde(
3220)
.

HASBEENAPPROVEDI
NTHEPARTIALFULFI
LLMENTFORTHE
AWARDOFDIPLOMA(CI
VILENGINEERI
NG)
“
DIPLOMAI
NCI
VILENGI
NEERI
NG”
BY
MSBTE,
MUMBAI
.

PROF.
K.R.
PAWAR PROF.
M.C.MASHYAL PROF.
A.A.
BHAWTANKAR

PROJECTGUI
DE H.
C.E.
D. PRI
NCI
PAL

3
Tabl
eofcont
ent
s

SECTI
ON1
LI
JJATI
NGENERAL

 I
NTRODUCTI
ON.

 HI
STORY.

 THEBEGI
NNI
NG.

 AWARDSHI
STORY.

SECTI
ON2

BASI
CPRACTI
CES&PHI
LOSOPHY

 BASI
CTHOUGHT.

 THREEGOLDENRULES.

 PHI
LOSOPHYTHATGUDI
DESLI
JJAT.

SECTI
ON3

 CULTURE.

 ROLEI
NWOMENEMPOWERMENT.

SECTI
ON4

 ORGANI
SATI
ONSTRUCTUREANDMANAGEMENT

 HOW THESYSTEM WORKS

SECTI
ON5

 PRODUCTI
ON&PACKAGI
NG

 PROCESS

 DI
VETDI
VETRSI
FICATI
ONS

4
SECTI
ON6

 MARKETPOSI
TIONI
NG

 ANALYSI
S

SECTI
ON7

 CHALLENGESANDPOTENTI
AL

 CONTRI
BUTI
ONTOSOCI
ALSERVI
CE

 PHI
LOSOPHY

SECTI
ON8

 PROBLEMSFACEDBYLI
JJAT

 PAPAD&THEI
RSOULTI
ON

 FACTORSFORSUCCESS

SECTI
ON9

 CONCLUSI
ON

 BI
BLI
OGRAPHY.

5
 SECTI
ON1

I
NTRODUCTI
ON

Beitaneveningsnack,orabanquetorameal
athome.ThePapadf
indsi
tsdueplaceon
thedini
ngtable.NoIndi
anmeal i
scomplet
ewit
houti
t,andI
ndi
a'
sbi
ggestPapad
successst
oryi sUndoubt
edl
y,Li
jj
at.

Ever
yoneenjoys'
ragstor
iches'
stor
iesandever
yonel
ikestal
esofstupendoussuccess
achi
evedthr
oughsheerdetermi
nati
on.Thest
oryofShriMahi
laGri
haUdy ogLij
j
atPapad
i
sallthatmuchmor e.

Shri MahilaGrihaUdyogLij
jatPapad,popularl
yknow"Li
jj
at",
isanIndi
anwomen' s
organi zat
ionmanufactur
ingdiff
erentProductsofvi
ll
ageindust
ri
es.Theor gani
zat
ion'
s
registeredoffi
ceisSit
uatedinMumbai andithas69cent
ersand31di vi
sionsen
diff
erentst at
es.Li
jj
atisspreadalloverIndi
an.

Staredin1959wi t
hacapit
alofRs.80.Li
j
jattodayhasaAnnual tur
noverofar
ound
Rs.315crore(Rs3.15bi
ll
i
on),wit
hRs.12Inexportsandhasar ound42,000employ ees.
Li
jjati
sprimaril
yacott
ageindustr
y,ur
banbyitsorigi
n,thathasspreadtotherural ar
eas,
I
tisconsideredasoneofthemostr emar
kableenterprenuali
nit
iati
vebywomant hatis
i
dent i
fi
edwithwomenempower mentinI
ndia.

ShriMahilaGrihaUdy ogLijjatPapadi sregister

edunderTheKVI CAct -(Khadi&Vil
lage
Industr
iesCommi ssion)TheKhadi andv il
l
ageIndustriesCommi ssion( KVIC)i
sa
statut
oryorganizationest ablishedin1956byanActofpar li
ament .
Themai nobj
ecti
ves
oftheKVI Cincludeski l
limpr ov ementPr ovi
dingempl oymenti nruralareas,andtr
ansfer
oftechnology,ruralindustri
alizati
onandpr omotingsel f
-rel
iance.Thef uncti
onsofthe
KVICar egenerall
yt oplan, promot e,organizeandassi stinimplement ationof
programmer sfort hedev elopmentofKhadi andv i
l
lagei ndustri
es.

6
HI
STORY

Lij
jatPapadisawomen' sorganizati
onoft hewomen, byt hewomenandf orthewomen.Itwas
staredin1959, Gi
rgaum,Mumbai with7ladymember soft her esident
ialt
enement sof"Lohana
Niwasgat heri
ngont heter
raceoft hebuildingf orafuncti
onbyr olli
ng4packet sofpapadsand
thedecisi
ont omakepapads, ev
er y
day .
ThusShr iMahil
aGr ihaUdy ogLij
j
atPapadmadea
beginni
ngundert heBlessi
ngofShr iChhangant alKaramshi Par ekhpopularit
yKnownasPuj y
a
Chhanganl al
'whowast hememberoft heSer vantsofIndiasoci etyandahi ghlysuccessf
ul
socialworker.Hewasanobl emangi ftedwi t
hdown- to-carthideas.

Theturni
ngpoi
ntoftheinstit
uti
oncamein1966whent henChai rmanofKhadi &Vi
ll
age
I
ndustr
iesCommi ssi
onPuj y
aUchhangralN.Dhebarvi
si t
edt heInsti
tut
ionandgoti
lrecogni
zed
bytheKhadi&Vil
lageIndustr
iesCommissioni
twasal sor egist
eredunder,BombayPublict
rust
Act1950andalsoregist
eredunderSoci
eti
esRegistr
ationAct ,1860.

TheObj ecti
veoft hei nstit
uti
onist oprovi
deempl oymentt othel
adiestoenablethem toearn
decentanddi gni
fiedl iveli
hood.Anywomencanr enderphysi
calwor kinthi
sinsti
tut
ionwithout
di
stincti
onofcast e.creedandcol orandagreestoabi debytheInstit
uti
oncanbecomea
memberoft heInstituti
onf rom t
hedat eonwhi chshest ar
tsworkingEverybranchisheadedbya
Sanchalikatoseet hepr oduct
ionoft hebranch.ThereisCentralmanagingCommi t
tee
consisti
ngof21member soutof,whichthereare6el ect
ed,-2Of f
iceBearersLePresident,
Vice
President,2Secretariesand2Tr easurer
s.

Anotheri
mpor t
antfactabouttheInsti
tut
ioni
sthatamalepersoncannotbecomeitsmember
andanymal eemployeewhet herworki
nghonoraryoronSal
arybasi
shasnor ightwhat
soev
er
overInst
it
uti
on.

BesidesLij
jatPapadtheinst
itut
ionhasot herpr
oductsli
keKhakhra,Masal
a,andVadi.SASA
DetergentPowder&Cakes, BakeryProducts,Li
qui
dSoaps.GehuAt t
a&Chapatti
s.Atpresentit
has69cent ers31divi
sionsi
ndi ff
erentst
atesandgi v
es,sel
fEmpl oy
menttoabout42000si ster
memberal loverIndi
an.Thesaleswhi chhaveamount edtoonlyRs.6,
196inthef
irsty
ear.
Le.
1959hav eal
readytouchthelevelofRs.300croreswhichincl
udesRs.12cror
esofexpor ts.

Li
jjatPapadhasear nedr eput
ati
onnotonl yi nI
ndianbutal soi
nev erynookandcornerofthe
wor l
d.Thewor l
dwidedemandf orcrispandal l
uri
ngLi j
jatPapadsalwayskeepgr owi
ng.At
presentabout30t o35per centproductionofLijj
atPapadi sbeingexported.Themain
consumercount ri
esincludeU.K.,U.S.A.MiddleEastandal soinSingapore,HonkKong.Thai
land
Holland,Aust
ral
ia.Europe.Japan&andot hercountr
ies.

7
TheBegi
nni
ng
Ital
l beganon15t hMarch1959whi chwasawar nsummerdaywi tht hesunshi ningbr i
ghtl
yin
thecl oudlesssky.Amaj ori
tyofthewomeni nhabit
antsofanol dresi
dent ial buil
dinginGirgaum
(athicklypopulatedareaofSout hBombay )
,werebusyat tendingtheirusual domest i
cchores
groupofsev enwomengat heredont heterr
aceoft hebuil
dingandst artedasmal l
i
nconspi cuousf unct
ion.Thef unct
ionendedshor tl
y,theresultproduct i
on.Thi spioneerbatchof
7ladieshadt hbaitr
oll
ing.Ast heday swentby,theadditi
onst othisinitial gr oupof7wasev er-
i
ncreasi ng.Theinsti
tuti
onbegangr ow, I
ttheearl
yday swer enoteasy .Thei nstit
utionhadits
tri
alsandt r
ibul
ati
on.TheFai t
handpat i
enceofthememberwer eputt ot estonsev er
al
occasi onstheyhadnomoneyandst art
edonabor rowedsum ofRs.80-Sel f-rel
iancewast he
poli
cyandnomonet aryhelpwast obesought(notev envoluntari
lyof f
er eddonat ions)sewerk
start
edonacommer ci
al f
ooting.

Today,Li
j
jati
smorethanjustahouseholdnameforPapad'(I
ndia'
smostpopularcr
ispybread),
Star
tedwithamodestl
oanofRs80, thesewomentookitsturnoverf
rom Rs6,
196inthefi
r st
yeartoRs300cr
oreinthenextdecades,i
nvol
vi
ngover40,000womenoni t
srevol
uti
onary
march.

Gandhianbusi
nessstrategy,equall
ywel lexecutedbyhi sfoll
owers,l
ateChhanganialKaramshi
ParekhandDamodarDat t
ani,whowor kedt ir
elessl
yf r
om behindthescene.Theirvisi
onwas
cl
ear-anexclusiv
ewomen' sor ganizationr unmanagedbyt hem, aquali
typr
oductt hesewomen
hadtheexpert
isetomake, and,finall
y,awor kenv i
ronmentwhi chisnotcompeti
tion-dri
venand
mechanizedbutbasedonpur elabourandl ovefortheor gani
zati
onandi t
speople,Lij
jati
stoday
gui
dedbysepar atedi
visi
onsofadv ert
ising, marketi
ng,salespromotionandexports.

Thereisgreatercoor dinati
onbet weenbranchoffi
ces(dif
fer
entpr oductionandmar keti
nguni
ts)
andcentrali
zedmar king,advert
isingandexport
sdepartments.Thecooper ati
venowhasannual
salesexceedingRs301cr ore(Rs3.1bil
li
on).What'
smor estunningthani t
sstupendous
successisitsstr
ikingsi mplici
ty.Withqual
it
yconsciousnessasthepr incipl
ethatguided
producti
on.Shrimahi laGr i
haUdy ogLijj
atPapadgrewt obetheflourishingandsuccessful
organi
zati
ont hatitist oday.

8
AWARDSHI
STORY
 TheInst
it
uti
onhasr ecei
vedanawardfrom Khadi&Vil
lageIndust
ri
esCommi
ssi
onasa
"BestVi
l
lageIndust
ryfortheper
iod1998-
1999t o2000-2001.

 On6September2003t
heinst
it
uti
onrecei
vedt
heEconomicTimesawar
dof
"
Busi
nesswomenoftheYear200-
2002forCor
por
ateExcel
lence"

 I
nJanuary2003itr
eceivedtheawardforBestVil
l
age"att
hehandsofHon'
bl
ePr
ime
Mini
sterShr
iAt
alBihar
iVajpayeeatnewDelhi.

 On21December2005insti
tuti
onhasrecei
vedhasreceiv
edt he"Br
andEquit
yAwardat
thehandsHon'
bl
ePresidentofI
ndi
a,DR.A.PJAbdulkalam pr
esentedbyPHDCCIat
VI
GYANBHAVAN, NewDelhi.

9
 SECTI
ON2

Basi
cthought
s
1.I
tisav
olunt
aryor
gani
zat
ionofsi
ster
s.

2.Theorgani
zat
ioni
sneitherfort
hepoorsi
ster
snorfort
heri
chanes-poorSi
sters
shoul
dremov et
hethoughtsofpover
tyfr
om shoul
dthei
rmindandtherichsi
ster
s
removethought
softhei
raffl
uence.

3.I
tnev
eraccept
schar
it
yorgr
ant
.

4.I
tbeli
evesi
nrunni
ngthebusi
nesswi
sel
yandwi
thpr
act
icegoodbusi
nesset
hicswi
th
deal
ersandconsumers.

5.Theorgani
zati
onstri
ctl
yobserv
esthepracti
ceofmai nt
aini
ngthetheaccounts
regul
arl
y,wri
ti
ngthebooksdail
yandprepari
ngbalancesheetseverymonth.6.The
organi
zati
onisli
keafamilyandsi
ster
srunitasiftheyall
belongtothesamef ami
ly.

7.Theor
gani
zat
ioni
sli
kear
ever
edpl
aceofwor
shi
p.

8.Noonecanchanget
hesebasi
cthought
soft
heor
gani
zat
ion.

Thr
eeGol
denRul
es
Besi
desbasicpr
inci
plesli
kesel
f-
rel
i
ance.co-owner
shi
pandf
ait
hdi
gni
tyofl
abour
,the
i
nsti
tut
ionhasal
sofor medthr
eeGoldenRules"

1.Al
lther
ight
soft
hei
nst
it
uti
onmustbel
ongt
omember
sonl
y.

2.Ther
emustbemai
ntenanceof"
Lij
j
at"qual
i
tyatanycost
.

3.Ther
emustbecl
eanandt
imeboundaccount
ingsy
stem.

10
Phi
losophyt
hatgui
des'
Li
jj
at'
Shr
imahi
l
aGr
ibaUdy
ogLi
j
jatPapadi
ssy
nthesi
soft
hreedi
ff
erentconcept
snamel
y:

1.TheconceptofBusi
ness.

2.TheconceptofFami
l
y.

3.TheconceptofDev
oti
on.

All
theseconceptsar
ecomplet
elyanduni
for
mlyf
oll
owedinthi
sinst
itut
ion.Asar
esul
t
ofthi
ssynthesi
s,apecul
i
arLi
jj
atwayofthi
nki
nghasdev
elopedther
ein.

Theinsti
tut
ionhasadoptedtheconceptofbusi
nessf
rom t
hev er
ybegi
nni
ng.Al
lthe
deal
ingsarecarri
edoutonsoundandpr agmati
ccommercial
footi
ngqual
i
tygoodsand
sel
lsthem atreasonabl
epri
ce.

I
thasnev eracceptednori
sitevergoi
ngtoacceptanycharit
y,donat
ion,gi
ftorgrant
fr
om quarter
.Ont hecontr
arymember sdonat
ioncoll
ect
ivel
yforgoodcausesf r
om ti
me
toti
me.Suchasconst r
uct
ionofhousesforEart
hquakesaff
ectedfamili
esofChinchol
i
Jogan(Latur
)Bhuj pur
,Kut
chetc.

Besidestheconceptofbusinesst hei
nsti
tut
ionhasadoptedt
heconceptofmutual
familyaf
fecti
on,concer
nandt r
ustwhicharethe'i
déef
ixeoft
hemember s.Al
lthe
aff
airsoftheinst
it
uti
onar etackledontheverysamepatt
ernasafamil
ycarri
esoutit
s
owndai l
yhouseholdchares.

Butthemostimpor t
antconceptadopt edbytheinst
it
uti
oni stheconceptofdevoti
on.
Forthemember saswel ltheemployeesandt hewellwi
shers,thei
nsti
tuti
onisnever
merelyaplacetoearnone' sli
vel
i
hood.Itatemple,achurch,amosque, agurudwara,
a
pl
aceofwor shiptodevoteone'senergynotforhisorherownbenef i
tsbutforthe
benefi
tofall
.Inthi
sinsti
tutionworkisworshi
p.

11
 SECTI
ON3

Cul
tur
e
Lij
jatPatrika,thein-
housemagazi ne, i
spublishedandcirculatedf oranominalr
ateto
thosei nt
er estedint
heact ivi
ti
esofLijjat
.Iti
spublishinmanyl anguages,i
ncl
uding
English,Guj ar
ati,
Mar athi
,andHindi.Ithasemer gedasast rongmodeof
communi cat i
onforinformati
onrelatedtosignifi
canteventsandi niti
ati
vesatLi
jj
at,i
n
additiontopr esenti
ngar t
icl
esonwomen.

Membersi st
ersacrossal
lbranchesofLi
jj
atr
eci
teanallr
eli
gionprayerbef
ore
beginni
ngtheirdai
l
yactiv
iti
es.Thesi
ster
sarefr
eetochooset hei
racti
vi
ti
esandeach
acti
vit
ygiv
enequal import
ance.

Rol
einwomenempower
ment
Thegrowthoft heLijj
atisoftenseeni nthelargercanv asofwomenandt heir
empowerment .Theor ganizati
onhasunder takenv ariouseff
ort
st opromot el i
ter
acyand
computereducat i
onformember -
sistersandt hei
rf amili
es.Ali
teracycampai gnfor
si
ster
s.begant hroughlit
eracyclassesatGi rgaum onJune18, 1999.Later,the
managingcommi tt
eedecidedt ostartsuchcl assinal li
tsbr
anchesf r
om 1980onwar ds.
Li
jj
atstar
tedgiv i
ngChhaganbapaSmur tiScholarshipstothedaughtersoft hemember -
si
ster
s.

Themember-si
ster
susedt hei
rorgani
zat
ionasamedi um topromotet heirandthei
r
fami
li
es'wel
far
e.IntheValodcentr
etheysetupaneducat i
onalandhobbycent refor
ther
uralwomen.Ori
entat
ioncoursesinty
ping,cooki
ng,
sewi ngkni
tt
ing, andtoymaking
aswellasot
hercoursesl
ikechil
dwelfar
e,fi
rstai
dandhy gi
eneweret aught .

In1979, Lij
jatt
eamedupwi thUNICEFt oorganizeasemi narinMumbai on"chi
ldCare
andMot herWelfar
e",aspar
toftheInternat
ionalYearofthechi l
dcelebrat
ions.I
n
Oct ober1984,BhadrahenBhattr
epresentati
onLi j
j
atattheUNI SCOsponsor ed
i
nt ernat
ionalworkshopon"Theroleofwomeni ntheassimilati
onandspr eadof
technologicali
nnovati
onbeldatNITIE,Powai.AlkabenKaliarepresent
edLijj
atatthe
Nat i
onal l
evelmeeti
ngonwomenconv enedbyNat ional
Commi ssiononSelfEmployed
Women.

12
 SECTI
ON4

Or
gani
zat
ionSt
ruct
ureandManagement
Inordertoensurethatt
heworki
ngofthetrustwaspr ofessional,
anorganizat
ionstr
uctureand
cert
ainprofessi
onalgui
deli
neswereputi
npl ace.Member -sist
ersownedtheenterpri
se.Any
women, i
rr
espect
iveofcast
eorrel
igi
onwil
lingtowor kinanycapaci t
y.couldbecomeamember
bysigningapledgeofdevoti
ontothebasi
ct enetsoftheor gani
zati
on.I
twasacommi tmentto
earnlegit
imatehonesti
ncomethoughtwokonacooper ati
v ebasi
s.

Howt
hesy
stem wor
ks
Theentir
ecyclest
art
swit
hasimpler
ecruit
mentprocess.Anywomanwhopl
edgest
oadoptthe
i
nstit
uti
on'sv
aluesandwhohasr
espectforqual
i
tycanbecomeamemberandcoownerofthe
organi
zati
on.

I
nadditiontothat,thoseinvol
vedi
ntherol
li
ngofthepapadsal
soneedt ohaveacl eanhouse
andspacet odrythepapadst heyrol
lev
eryday
.Thosewhodonothav ethisfaci
li
tycantakeup
anyotherresponsibil
it
ies,l
i
kekneadi
ngdoughorpackagi
ngortest
ingforquali
ty.

Packedpapadsar esealedint
oabox( eachboxhol ds13.6kg)andtheproducti
onfrom each
centr
eistranspor
tedtot hedepotf
orthatarea.Mumbai alonehassixt
eenbranchesandsi x
depots.Eachdepotstocksproduct
ionfrom thenearbythr
eetofourbranchesroughlyabout400
boxes.

Insomesmall
ert
ownsorv
il
lages,
thebr
anchi
tselfservesast
hedepot
.Thedepot
sar
eour
stor
agear
easaswel
laspi
ckuppointsf
ordi
str
ibutors.

13
DI
STRI
BUTI
ONFLOW CHART

14
Theirdist
ributorspickupthequant
ityofpapadt heyr
equireandpaycashondel i
verybecause
theypayt heirhens( membersar
ecalledbens,orsist
ers)ev er
yday .Sincet
heyhaveanestimate
ofthequant ityeachdist
ri
butort
akes,theyproduceaccordingly.Thisensur
esthatt
heyneither
stockinventorynorpayheav i
lyf
orstorage.

Theyhaveabout32distr
ibutorsi
nMumbai .Eachdist
ri
butorpi
cksupanav er
ageof100boxes
perdayfr
om thedepot.Thisiswherethei
rjobends.Theyarenoti
nvolv
edinhowandwherea
di
stri
but
ordeli
ver
sasl ongashest ayswit
hintheareatheyhavemarkedforhi
m.

General
l
yeachdistr
ibut
orhashisthr
ee-wheelerandaboutei ghtt otensal
esment odeli
verto
ret
ail
outl
etswit
hinhister
ri
tor
y.Toselectadistr
ibutor
,theyfirstgiveanadv er
ti
sementin
newspaper
sfortheareastheyhavemar ked.Member sfrom theirmarketi
ngdivisi
onpersonal
ly
goandcheckthegodownf aci
li
ti
esandonl yontheirapprovaldot heyappointdist
ri
but
ors.

Adistri
but
orpaysthem Rs150,
000asdeposit
.Theymakeitcl
eart
othem thatt
heymustpayon
deli
veryi
ftheywantourdist
ri
but
orshi
p.Thi
ssy st
em i
sfol
l
owedallov
erIndiaandi
tworkswel
l
forthem.

Whent heydiscovert
hatther
eisdemandi
naparti
cul
arpl
ace,t
heyopenanewbranch,
li
kethe
recent
lyopenedonei nJammuandKashmir.Whet
herornott
heyhaveacent
rei
nanarea,t
heir
goodsreacht her
e.

Forexampl e,
theydonothaveanycentreinGoa,buttheyhaveappoi
ntedadi st
ri
butorfort
hat
areatoensurethatLi
jj
atpapadsreachGoa.Theircommuni cat
ionwi
thdist
ribut
orsisregul
ar
throughmont hl
ymeetingswher
et heydi
scusstheirpr
oblemsandalsotheissuesthattheymay
hav eaboutqual
ity
,pr
ice,r
each,
etc.

Theydonothaveindivi
dualdoor-to-
doorsal
esmenorwomensel l
ingf
rom homes--onlythe
appoi
nteddi
stri
butorforthearea.Thesamesystem i
sfol
lowedforot
herproduct
s,butthey
mayhav edi
ff
erentdistr
ibut
orsanddepotsfordi
ffer
entpr
oducts.

Expor
ts
Theirexport
saloneaccountforRs10cror
e(Rs100mi ll
ion)
.Theyar
enotdir
ectl
yinvol
vedi
n
exporti
ng,butr
ecognizedprofessi
onal
merchantexpor
ters(
whoalsoexpor
totherfood
products)pl
aceanexportorder.

Onlyonrecei
vi
ngtheful
ladvancethr
oughachequedotheybeginproducti
on.Becauseall
export
saredonefr
om Mumbai ,t
hesuppl
yalsocomesfrom her
e.Exportproduct
ionisofthe
samequalit
yasdail
yproduct
ion.I
nfact
,theysendsomeofthedail
yproductionf
orexport
.

15
 COLLECTI
ONFLOW CHART

Di
str
ibut
ingpr
ofi
ts.
Theyhaveaccount
ant
sinever
ybranchandev
erycentr
et omaint
aindai
l
yaccount
s.Pr
ofi
t(or
l
oss,i
fany)i
ssharedamongallt
hemembersofthatbranch.

Theyhaveacommi tt
eeof21thatdecideshowt hepr
of i
tsaretobedistr
ibut
ed.Theygener
all
y
buygoldcoins-5gm or10gm,dependingontheprofi
t.Everyonegetsanequalshar
eofprofi
t,
i
rrespect
iveofwhodoeswhatwork.ir
respect
iveofseniori
tyorresponsi
bil
it
y.

Evenabenwhohasr ecent
lyjoi
nedgetsthesameshareasother
swhohavebeenwit
hus
l
onger.Eachbr
anchcalcul
atesi
tsprof
itanddiv
idesi
tequal
l
yamongalli
tsmembers.

Mumbaihas12,
000members,
ther
estofMahar
asht
rahas22.
000,
andGuj
arathasbet
ween
5,
000and7,
000members.

16
 SECTI
ON5

PRODUCTI
ONANDPACKAGI
NGPROCESS

Theproducti
onprocessbeginsat4.30a.m.i nthemor ni
ngwhentheenti
resi
stermembers
cometocol l
ectt
heirrespect
ivedough.Theycoll
ectitandgobacktothei
rhomesandst ar
t
rol
li
ngrol
li
ngthedough.Ther ol
leddoughisthendri
edonapieceofclot
hundersunl
ight
.The
nextmorni
ngthesist
ermember sbri
ngthesepapadsback.

Inthesecondst agetheroll
edpapadsar esendtothequal i
tycont r
oldepart
mentf orther egul
ar
quali
tyundert hesupervisi
onofqualitycontrolexecutive.Lijj
athasbeenmai ntai
ningoft he
samest andardsincethedayofitsexi
sting.Thecheckingoft hepapadsi sdonei nabat ch,and
i
fanyoft hePapaddoesnotconf or
mt otheLij
jatstandardthent hewhol ebatchisdisposedof f
.
Thei nst
it
uti
onensur esthatthesedefecti
vepapadsdonotr eacht hemar ket:hencetheyar e
disposedintheseainsteadofgarbagehin.Thisguaranteest hattheyneverreachthemar ket
.

I
ncaseofanymi stake,
theinsti
tuti
onnotonl
ytr
iest
of i
ndoutt
hatwhohasmadet hemi stake,
i
nsteadtheyal
sotr
yt omistakesisbor
nebyallt
hesi
stermembers,
incaseofheavylosses, but
i
fthelossissmal
lerminutethenthememberwhohasmadet hemistakei
tsel
fbear
st heless.

Theinsti
tuti
onitsel
fcarr
iesoutthepackagingprocessinst
eadofhav i
ngabor
ationher
s.These
pl
asti
cbagsar emanufithoutanytechni
calhelpormachi ner
y:inst
eaditi
shand-made.These
employeesareal sowamen.Thepackagi ngdepartmentcompr i
sesof70sist
ermember s.The
bagsthatareusedf orpackingpapadsarePolpopryi
n(PP)bags.Thesebagsaremanufactur
ed
atafactorysi
tuatedatDahisar
.

17
Di
ver
sif
icat
ions
Li
j
jathassev
eral
div
isi
onsandmanuf
act
uri
nguni
ts:

 Fl
ourDi
vi
sion(
Vashi
)

 Masal
aDi
vi
sionsandQual
i
tyCont
rol
Labor
ator
y(Cot
tonGr
een)

 Pr
int
ingDi
vi
sion(
Cot
tonGr
een)

 Adv
ert
isi
ngDi
vi
sion,
Bandr
a

 Khakhr
aDi
vi
sion,
(Buhar
i,Val
oddi
str
ict
)

 Chapat
iDi
vi
sionsatWadal
a,Bor
ival
i
,Mul
undandKandi
val
i

 Pol
ypr
opy
leneset
-up(
Kashi
-Mi
raRoad)

 Vadi
fact
ory(
Val
od)

 Baker
yDi
vi
sion(
Val
od)

 Det
ergentPowderandCakemanuf
act
uri
nguni
t(Dahi
sar
)andof
fi
ce(
Bor
iov
ali
)

18
 SECTI
ON6

Mar
ketPosi
ti
oni
ng
Asabusi nessenterpr
ise,thedecl i
ningsalesfi
guref ort
hreeconsecuti
veyears-Rs298cr or
e
(1999-2000),Rs288cr ore(200-2001)andRs281cr or
e(2001-2002),i
samat t
erofconcernfor
Lij
jatmanagement .Someofi t
shomet urfinMahar asht
raandGuj ar
athasbeencapturedbya
growingcompl eti
ti
velocalmar ket.ButLi
jjathasalsoexpandedt otheNort
hDel hi
,Punj
ab,
Himachal Pradeshand, wit
hthel atestbr
anchi nJammu, t
otheKashmi rmarketaswell.

Thougheachbranchi sresponsibleforthemar kingofit

sproductsintheareasall
ott
edt oit
,the
newcentr
ali
zedmar keti
ngof fi
cesnowpr ocuresur pl
usproduct
ionfrom di
ffer
entbranchesand
marketi
tatanall-
Indialevel.Thiscoupl
edwi thaheal t
hyupwardtrendintheexportofLijj
at
Papadposit
ionsLij
jatast hestrongestbrandint hePapadindustr
y.Theotherbigbrandsinthe
PapadmarketareBi kaner,MDHandSakt ibhog,butnoneseem tobeabl etomakeanydenti n
Li
jj
at'
sshareoftheindust r
yast heircor
ebusi nessisnotPapad.

Pr
oduct
s
Li
j
jat
'smanuf
act
uressev
eral
product
s,ofwhi
cht
hePapadi
sthemostf
amous:

 Papad(
fi
vef
lav
ors:
lasan,
moong,
mir
ch,
Punj
abi
andur
ad)

 Khakhr
a

 Appal
am

 Masal
a

 Vadi

 GehuAt
tu(
Wheatf
lour
)

 Baker
ypr
oduct
s

 Chapat
i

 SASADet
ergentPower

 SASADet
ergentCake(
Tiki
a)

 SASANi
l
am Det
ergentpower

 SASALi
qui
dDet
ergent

19
Pr
ici
ng
Shrimahi l
aGr i
haUdyogLij
atpapadadoptsaCostPlusPr i
cingStr
ategyforallt
heirpr
oducts.
TheLi j
j
atpr oduct
saretar
getedatthemiddl
eandlowersegment sofsociety.Thesesegments
arehighlypricesensi
ti
veandhencethi
smethodofpr i
cingallowsthem t
omar ketthei
rproduct
s
extensi
vely.

Whi
l
ecal
cul
ati
ngt
hepr
icet
hef
oll
owi
ngexpensesar
etakeni
ntoconsi
der
ati
on:

 CostofRawmat
eri
al

 Rol
l
ingChar
ges

 Packagi
ngCost
s

 Sel
l
ingExpensesAdmi
nist
rat
iveexpenses

Acer
tai
nmakupi
sthenaddedt
othesecost
stoaccountf
ort
hepr
ofi
ts.

Pr
omot
ions
AtShr iMahil
aGr
ihaUdyogLijj
atPapad,
theybel
ievethatt
hebestpromotiontheycoul
dpossi
bly
receiveisbywor
dofmout h.Ther
eforet
heyconcentr
atemor eoncosteff
ecti
venessandqual
i
ty
ratherthanonmoreexpensi
vemodesofpr omoti
onlikeadvert
isement
s.

Thereforeannualexpenseonadv ert
isementandpromot i
onamount st
oRs.60lakes.amere
0.2%oft ot
al t
urnover.Theextremelyf amousbunnyrabbit
'campai
gncont
inuestobeairedon
specif
icregionalchannels.Fore.
g.Al phaGuaj
arati
,AlphaBengal
i,
Sunect
.Theyalsoadv er
ti
se
i
nEngl ishandregionalnewspaper s.

Thedistri
butor
salsoneedtobemot i
vat
edproperly,
sot hattheyi
nturnmakeagr eateref
fortt
o
sell
largevolumesoftheproductstotheret
ail
ers.Targetsaresetquar
ter
lyfort
hedistri
butors
i
.e.shouldtheyexceedt
histarget
:thedist
ri
butorwil
lreceiveafurt
her1%discount.

20
ANALYSI
S

SWOTAnal
ysi
s
St
rengt
hs

 Si
ncer
eHar
dwor
k

 Dev
elopmentwomanbypr
odi
ngt
hem al
i
ving/empl
oyment
.

 Mai
ntai
ningt
hesamest
andar
dov
ert
hel
ast45y
ear
s.

 Hav
ingauni
quest
atusi
nthecount
ry.

Weakness

 Theinst
it
uti
ondoesnotbel
i
evei
nhol
dinganyweaknessf
oraper
manentoral
ong
per
iodofti
me.

Thr
eat
s

I
nter
msofcompet
it
ion

 I
nthePapadindust
ry,
themaj
orcompet
it
ionort
hreati
sposedt
othei
nst
it
uti
onby
GaneshPapad.

 I
nthespi
cesi
ndust
ry,
theHal
dir
am andMDHar
ethemaj
orcompet
it
ors.

 I
ndet
ergent
,ther
ear
emanycompet
it
orsl
i
keHLL,
P&Gect
.

21
 SECTI
ON7

Chal
lengesandpot
ent
ial
Thest oryofsev enil
li
terat
eandpoorwomenwhobor rowedRs80t ostartaPapadbusi ness,
andt ookitsturnoverfrom Rs6,196i nthefirstyeartoRs300cr oreinthenextfourdecades,
i
nvol vi
ngov er40,000womenoni tsrevolut
ionarymar ch,i
sf anci
fulatanyawel lthought-
out
Gandhi anbusinessstrategy,equallywellexecutedbyhi sfoll
owers,lat
eChhaganl alKaramshi
parekhandDamodar ,whowor kedt ir
elessl
yf r
om behi ndthescene.Theirvisi
onwascl earan
exclusivewomen' sorganizat
ionr unandmanagedbyt hem,aqual i
typroductthatthesewomen
hadt heexperti
set omake, and,fi
nal l
y,awor kenv i
ronmentwhi chisnotcompet it
ion-dr
ivenand
mechani zedbutbasedonpur el
abourandl oveforor gani
zationanditspeople.

Lij
jatistodayguidedbyseparat
edivisi
onsofadv ert
isi
ng,mar ket
ing,sal
espr omoti
onand
expor t
s.Thereisgreat
ercoordi
nati
onbet weenbr anchof fi
ce(dif
ferentproduct
ionandmar kei
ng
units)andcentral
izedmarki
ng,adverti
singandexpor t
sdepartment s.Tr
ansferoffi
nished
productscent r
ali
zedmarket
ingoffi
cesf rom dif
ferentbrancheswaswor t
hRs113. 52croreand
ad-spendst oodatRs2.55crorefor2000- 2001.

Cont
ri
but
iont
osoci
alser
vice
Onsev eraloccasi
ons, t
heLi j
jatmember -sist
ershaveundertakensoci alservi
ceacti
vi
tiessuch
asdist ri
butingnutr
it
iousf oodf orpoorchildr
en,donat
ingmoneyf orconduct i
ngcommuni ty
mar r
iage.i nst
it
uti
ngpr i
zemoneyf or
espr eadofpri
mar yeducation,undertaki
ngblooddonation
dri
ve, organizi
ngheat hcamps, plant
ati
ondr i
vesandev enmaki ngdonat i
onst oGovernment
bodies.In1999, theMumbai Cityfel
i
cit
atedSmt .RukminibenB.pawar ,
Lijj
atPresi
dent,asan
outstandi ngwomani nt hefieldofsocialwork.

Li
jj
atundertooktherehabi
li
tat
ionOfchi
nchol
i(Jogan),
theearthquakeaff
ectedvil
l
ageint
he
Laturdi
str
ictofMaharashtr
a.Theinst
it
uti
onprovi
dedthef i
nanceandsuper v
isedthewor
kof
constr
ucti
onoffift
y-ei
ghthousesfort
hepeopl
eoft hevil
l
age.Member -si
ster
sdonatedmoney
fr
om thei
rdailyv
anai (
wage).

Afterthe2001Gujaratear
thquake,al
lthebranchesofLij
jatgaveatot
al donati
onofmoret
han
Rs4. 8mill
i
on,i
ncludingRs1mi l
li
onfrom thecentral
offi
ce.Lij
j
atbuil
tfortyhousesf
ort
he
rehabil
it
ati
onofthepeopleofBhujpur(Bhachau)inKutchDistr
ict
.

22
 SECTI
ON8

PROBLEMSFACEDBYLI
JJATPAPAD&THEI
RSOLUTI
ON
Thepapadsar
epreparedi
ndi
fferentpartsofIndia,thequali
tyofthewaterusedusual
l
yvar
ies,
andsocanthequal
it
yoffi
nal
pr oduct.Topr eventanyinconsist
enci
es,
Lijj
athasit
sown
l
aborat
oryi
nMumbai ,
wheret
hef inal
pr oductsaretestedandcoded.

Inthemonthl
ymeet i
ng,thequal
it
yissueandmodi f
icat
ionsarealsodiscussed.Curr
entl
yther
e
i
sapr obl
em offakeLij
j
atpapadsbeingint
roducedinthemarket.InJune2001, t
hreeper
sons
arearr
est
edinthisconnecti
oninBihar
,butthethr
eatexist
sintheglobal marketal
so.

Withincr
easi
ngbusi nessandot heradvances,theneedf orinf
ormationdisseminati
onand
communi cat
ionamongmembersi ster
satv ari
ousbr ancheshasincreased.Themont hl
y
regi
onalmeet i
ng,
annual generalmeeting,andAll-
Indiaconventi
onofbr anchesareheldt
okeep
themember sawareofor ganizati
onact i
vi
ti
esandst rategi
es,andtodiscussissuessuchas
quali
tymaint
enance, pr
oductionrates,thehandli
ngofaccount s,andeverydayproblemsto
assureabetterworkenvironment.

1)Pr
evi
ousl
yDet
ergent
,al
ongwi
thal
ltheot
herpr
oduct
sofLi
j
jatwasexemptf
rom sal
est
ax.
Recentl
ytheGov er
nmenthaspassedanewpr ovi
sion,whichdoesnotincl
udedet ergenti
nthe
PCPI(ProcessedCerealsandPulsesIndustt
ies)l
istofproduct
s.Therefor
e,Shri
Mahi laGri
ha
UdyogLijj
atPapadisLibablet
opayt heSalesTaxf orthei
rSasaDetergentPowder .Negoti
ati
on
i
scurrentl
ybeingcarri
edoutwithgov er
nmentt oexemptt hi
sproductfr
om Salestaxaswel l.

2)Ther
oll
edpapadsneedt
obedr
iedf
oracer
tai
nnumberofhour
s.Thi
sent
ir
epr
ocessi
ndone
i
nt hebhagini
's'
homes.Theref
oreinthemonsoonwhenIr ai
nsiti
sdiff
icul
ttodr
ythepapads
outdoor.Thi
snowhast obeindoors.The'bhagi
nisst
ayi
nsmallhousesandspaceisa
constr
ainthencefewerpapadsareproducedduri
ngthemonsoonseason.Thisi
sthereason
thatLi
jj
atdoesnotexportinmonsoons.

Thesol ut
ionadoptedbyLi
jj
atist oprovi
deextr
amoneyt othebhagini
sduri
ngmonsoonsto
purchasekerosenelampsenabl efast
erdryi
ngofpapads.Oursuggesti
onistohi
reanaddi
ti
onal
spacedur i
ngmonsoonacent ral posi
ti
onnearthedepot
s,withker
osenelampswherethe
bhaginiscancomeanddr ytheirpapads.Thi
swi l
ll
eadtohigherpr
oducti
onwhichcanbe
exported.

3)Li
j
jatcur
rent
lyexpor
tst
hroughmer
chantexpor
ter
sanddoesnoti
nvol
vei
tsel
findi
rect
export
ing.Wef eel
theycansav
eont hemargint
hatthemerchantexport
ersmake,byappoi
nti
ng
thei
rowndi st
ri
butorsi
nthemaincountr
iesandthi
swill
enablethem t
oreducecostand
i
ncreaseprofi
tmar gi
n.

23
Fact
orsf
orSuccess

 Themer gi
ngofownershi
pwithmember
shi
phasencour
ageduni
for
m and
sust
ainedorgani
zat
ional
growth.

 Theconsi
stentqual
it
yofthepr
oducthasbeenapr
imaryfact
orinest
abl
i
shi
ng
andmaint
ainingLi
jj
at'
sbr
andinthemarketf
ort
helastf
ourdecades.

 TheSar
voday
aphi
l
osophypr
ovedv
ital
inf
ormi
ngLi
j
jat
'sf
oundat
ion.

 Li
jj
athasemer gedasaninnov
ati
veor
gani
zat
ioninwhichwomenf r
om rel
igi
on.
caste,
orclasscanbecomemembers.Thepl
edgeandal l
-r
eli
gionpr
ayeralso
encouragecooperat
ivewor
kamongwomen,ir
respect
iveofcasteorrel
i
gion.

 Transparencyi
noperat
ionsandnonhier
archi
cal
str
uct
urehashelpedi
n
establ
ishingor
gani
zati
onalaccount
abil
i
tyamongmembersist
ers.

 Lij
jatencour
agesit
smember stogivet
oot her
swhatevertheycan,i
nst
eadof
expecti
nghelpfr
om ot
hers.Li
j
jatdoesnotacceptdonat
ions,butgi
vesdonati
ons,
whichenhancesmembers;sel
f-est
eem andpri
deinthei
rownor gani
zat
ion.

 Call
ingthemember s"si
ster
s"cr
eatesaninf
ormal workenv
ironment
.Frequent
meet i
ngs,openinteract
ion,
andconsensual
distri
buti
onoftasksr
educethe
possibil
i
tyofdisputesresul
ti
ngfr
om communi cati
ongapsandhelpworktogo
smoot hl
y.

 Li
jj
atprovi
deseconomi copport
uniti
esthroughadomest icacti
v i
ty.Onceinvol
ved
i
nthisacti
vi
ty,thewomenacqui r
econf i
denceandst at
usast heymakemoneyi n
arespect
ablemanner .Themoreent er
pri
singresponsi
bleandexper ienced
membersisterscli
mbt headminist
rati
veladder.Li
jj
atexempli
fiesar emarkabl
e
wayofmaki ngleaderoutofor
dinarywomen.

24
 SECTI
ON9

CONCLUSI
ON.
Themostint
eresti
nglessonmanager
scanpickupf
rom Shr
iMahi
l
aGr
ibanUdy
ogLi
j
jat
Papad,
sti
cki
ngt oit
scoreval
uesthepastf
ortyy
ear
s.

Thei
nsti
tuti
onthuspavest hewayforwomentobecomesel
f-
rel
iantandsel
fconf
ident.
I
ntheprocessLij
jatpr
ov i
desthem t
heplat
for
mforimpr
ovi
ngtheirst
atusi
nthesociet
y,
whi
chistheirj
ust
ifi
edright.

Theladiesarebri
mmi ngwithconfidence.Li
jj
atisaninsti
tut
ionwhi chhasstoodthetr
ial
ofti
meandt ribul
ationandhasachi evedsuccessbecausewhenbasi cmanagement
pri
ncipl
esanduncompr omisi
ngqual i
tyconsci
ousnessareappliedinconjuncti
onwit
h
soundbusinessprincipl
es,
therecanbeonl yonewayf ortheladiesoftheLij
jat
-a
bri
ghterandhappiertomorrow,theprideandjoyoffulf
il
lment.

Li
jj
atmakesalmostequalmoneyf oritsentir
epeopleandmakesj ustenoughmoney .
Noonewoul dbecomeami ll
ionairebyset ti
ngupanotherLij
jat.I
fthisaspectofLijjat
's
oper
ati
onsisnotverygoodnewsf ormachi neandmoney -dr
ivencor porateownedby
ty
coons,t
heessenti
almessaget hatLij
jat'
ssuccessconveyshasdef i
nitel
yfi
redthe
i
maginati
onofwomenandr uralfolks.I
nmanypar t
sofMahar ashtraandGuj arat
,locall
y
manufact
uredandmar ket
edeat ablesar ecatchi
ngon.

Asabusi nesshouse.Li jj
atitselfhasbeent ryingt orewr i
teitsownsuccesswi thanot her
productwi thvar yi
ngdegr eeofsuccess.Gr oundedspi ces,Khakhr a,blackpepeer
powder ,detergentpowderandcake, Vadi,
baker ypr oducts,wheatf il
thierar eonLi jj
at's
menubutPapadwi thasal esfigureofRs288cr orer emainsatt het op.Amongsi milar
ventur eswhi chcameacr opperar eincensest icks,leatherbags, Tif
finboxesand
mat chst i
cks.Butmostpr omi singamongt hem i sthechapat ti
divisi
onwi thsixbr anches
i
nMumbai .Her e,thewomencomei ntowor katar oundsev eni nthemor ningandmake
chapat tiast heyar epr eparedinhomes.PackedLi jj
atchapat ti
,fourf orRsf ive,are
availableatr etailshopsi nMumbai .Thesecent ersal soprocur eorder sfrom hot els,
offi
cecant eens, etc.andt hecat eri
ngi nMumbai i
ncl udessomebi gnamesf rom t he
hotel andcat eringi ndustry.Ast hepaceofl ifeincreases, li
tt
letimei sav ail
abl etomost
peopl einmet roslikeMumbai tocookt hei
rownf ood. Nextti
met hereisLi j
jatPapadon
thetabl e,yousur ecanseeaChandr asekharorSuj a'
sdi mpledf i
nger sdef t
lyrolloutt he
cri
spPapad.I tismadewi thloveandcar e,j
ustl i
kef rom theirmama' skitchen.

25
 BI
BLI
OGRAPHY

 Wor
ldWi
deWeb

 www.
googl
e.com

 www.
li
j
jat
.com

I
nfor
mat
ionf
rom t
heLi
j
jatpr
ospect
us

 www.
wiki
pedi
a.com

26