LIJJAT PAPAD

Shri Mahila Griha Udyog Lijjat Papad

HISTORY

• On 15th March 1959, seven women with no special skills but a strong determination to earn dignity as individuals initiated a venture to earn additional income through better use of their idle time.

• Household materials were used to make these products

• Low overheads and prices created demand for their product.

• Number rose from 7 to 25 within 3 months and 300 members at the end of 3rd year.

• Jaswantiben Jamnadas Popat was the pioneer. • Functioned first seven years as an unregistered organization• In 1966-67, Lijjat was registered as a public trust recognized by Khadi and Village Industries Commission (KVIC) as a unit belonging to “Processing of Cereals and pulses industry group.”

An Organization Of The Women, For The Women And By The Women.

The Main Motive: An institution to give self-employment to women.Objective:• Spread message across the East,West,North ,South.• Follows Mahatma Gandhi’s principles of sarvodaya and trusteeship and infuses it in all its processes.• It started off with a modest loan of Rs.80• Now having an annual turnover of over Rs.650 crores.• It provides employment to over 43000 ladies across India.• There are around 82 branches all over India and 20 branches in Mumbai.

INTRODUCTIOn

CONTND…….• When a new branch of Lijjat opens, a neighboring Lijjat branch helps it by guiding and training new members so that even these new women members can prosper.• Election of new site is done by the managing commitee.• The company has never accepted charities or grants, in order to maintain its independence and thus protect the self-dignity of the associated women.

It accepts all its working members as the owners and an equal partaker in both profit and loss.

90% ladies are not well-settled, they have to earn their living on their own.

At present, 30 per cent to 35 per cent of the production of Lijjat Papad is being exported, mainly to countries like the United States, the United Kingdom, the Middle East, Singapore, Hong Kong and Holland.

Not directly involved in exporting, but recognised professional merchant exporters (who also export other food products) place an export order

Only on receiving the full advance through a cheque production is undertaken.

All exports are done from Mumbai. Export production is of the same quality as daily

production.

ORGANISATION STRUCTURE

Sanchalika looks after the whole branch (quality and production).

Members who show leadership skills are given such as administrative issues and can gradually go on to become sanchalikas or branch heads.

Only a papad roller can become President.

CONTND……o After practice of 7-8 months, a lady can roll 5kg dough daily.o VANAI(rolling charges) is paid to every member for the work she does everyday.o Rs.33 per kg is the VANAI given daily.o Every lady has to roll minimum of 5kg dough.o Yearly attendance is considered and 130 days(approx 4 months) leave is taken into consideration.o Extra VANAI(profit sharing) is given to the members during Diwali and March-ending. o Rs.2 from daily VANAI is deposited in the bank as savings.

WOMAN’S WORLD… Lijjat Papad is about women. It provides work - and work that

gives self-dignity. Only women are eligible to join or to become sister-members.

The women employed are poor, and are often the sole earners in their households. If they do not earn here, they will not eat at home. Only one lady from each house can become a member.

There is no age limit but 18 is the minimum age and literacy does not matter.

In contrast to other Indian women, the workers actually own Lijjat – collective ownership.

Joining up is not at all difficult:Every woman who fills the pledge form is accepted with no further formalities or preconditions.

No barriers to entry such as skills as making papad is like a birthright to the Indian woman.

Training is given at the time of induction so as to ensure same process and recipe is followed by each and every member.

3-4 days training to newcomers to prepare 5 inch papads from 1kg dough 7 inch papads from 1kg dough

DISTRIBUTION NETWORK

Sales depot in Mumbai are at Wadala,Borivali,Vashi,Nalasopara,Govandi, Bhiwandi.

Distributors within certain area are made to give above 50,000 to 1 lakh as deposit.

7% commission on total sales of papad is given to the distributors.

Head office procures raw

materials

Send raw materials to

Branches all over India Depot of that

area

Distributor collects goods

Distributes to retail outlets

within its territory

Merchant exporter

collects goods

Exports to various

countries

HOW WORK IS DONE ???Dough is kneaded in the Lijjat branch.Dough making ladies report at 4.30 to 5.00 in the morning to their branch.Dough is then collected by other women who take that dough home,roll them into papad and bring it the next day.Members return the dried papad and payment is made on the next day of delivery after quality check.

The papads are then packed into a box. Each box weighs 13.6 kg. The production of an area is transported to the

depot of that area.

QUALITY CHECK Quality check is done at every

branch.

In the monthly meetings, the quality issue and modifications are tested.

Ingredients are purchased and distributed by the Central Office to maintain the quality.

Procurement of Ingredients:

– Urad dal from Myanmar

– Asafoetida from Iran

– Spices from Cochi(Kerala).

A team of 5-6 members in each division give surprise visits to the members’ houses to ensure production conditions are hygienic. If the team finds the place is not good then thereafter those ladies are not allowed to work.

Contnd……. Each and every packet has to pass quality

assessment check. Bad/Inferior quality products are destroyed. Sanchalika and a tem of 3-4 members roast and

eat the papads to check lijjat papad quality and standard and if that is met then those papads are sent for packaging.

If quality is not met then that whole lot of papad is thrown and the concerned lady has to bear the loss.

1kg dough must produce 800gms of final output failing which pay is cut.

Successive failures of a branch to abide by the organization's philosophy of consistent quality and production of papads, the central committee reduces the daily VANAI of its members by 1 rupee.

Facilities To Members Lijjat gives Chhaganbapa Smruti Scholarships to the

daughters of the member-sisters. Children of members who have appeared for 10th and

12th are given scholarships irrespective of their marks.

Lijjat has started an educational and hobby centre for the rural women.

The organization has undertaken various efforts to promote literacy and computer education for member-sisters and their famil0ies. Free eye camps and specs for the papad rollers. Mini bus facility to the member sisters within an area of 7-10 kms for every branch.

AWARDS Lijjat recevied the "Best Village Industries

Institution" award from KVIC for the period 1998-99 to 2000-01.

In 2002, the "Businesswoman of the Year" award was given to “Jyoti Naik-The Women Behind Lijjat Papad" at The Economic Times Awards for Corporate Excellence.

Mumbai City felicitated Smt.Rukminiben B.Pawar, Lijjat President, as an outstanding woman in the field of social work.

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.

PROFIT GENERATION• Profit generation is considered essential as that is

what makes the organization self sustainable • Less number of administrative staff per centre to

reduce expenses• Own network of suppliers as the product range does

not give credit to the retailers• Today, Lijjat Papad is the generic reference for

papads• Each branch is responsible for all activities from

production to packaging to collection and distribution of vanai and profit for its particular geographical region. This ensures that each branch works efficiently with profit as motive.

WOMEN’S EMPOWERMENT

All the decisions are based on consensus and any member-sister has the right to veto a decision.

Use of Technology is rejected as it would displace jobs.

Profits and losses are shared equally among the members of a given branch.

There is no fixed retirement age at Lijjat as the motive is emphasis obviously was on earning one's bread through daily work, all through one's life.