Shri Mahila Griha Udyog, the makers of the famous Lijjat Papad, is an organisation which symbolises the strength of a woman. Only women can become the. Contributed by members of Shri Mahila Griha Udyog Lijjat Papad is Contributed by members of TORY. The story of Shri Mahila Griha Udyog Lijjat Papad is all that and much more. Today, Lijjat is more than just a household name for ‘papad’.
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E veryone enjoys ‘rags to riches’ stories and everyone likes tales of stupendous success achieved through sheer determination. Today, Lijjat is more than just a household name grihw ‘papad’ India’s most popular crispy bread.
Started with a modest loan of Rs 80, the cooperative now has annual sales exceeding Rs crore Rs 3. What’s more stunning than its stupendous success is its striking simplicity. Sticking to its core values for the past forty years, Lijjat has ensured that every process runs smoothly, members earn a comfortable profit, agents get their due share, consumers get the assurance of quality at a good price, and society benefits from its donations to various causes.
How has all this been possible? Its story shows how an organisation can infuse Gandhian simplicity in all its activities. Here we look at jdyog distribution cycle. Every morning a group of women goes to the Lijjat branch to knead dough, which is then collected by other women who roll it into papads.
When these women come in to collect the dough, they also give in the previous day’s production, which is tested for quality. Yet another team packs the tested papads. Every member gets her share of vanai rolling charge every day for the work she does and this is possible only because the rest of the system is geared to support it. T he 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 organisation.
In addition to that, liujat 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 Mumbai alone has sixteen branches and six depots.
Each depot stocks production from the nearby three to four branches — roughly about boxes. In some smaller towns or villages, the branch itself serves as lijjzt depot.
The depots are our storage areas as well as pick up points for distributors. Click here for Lijjat’s distribution flow chart Our distributors pick up the quantity of papad they require and pay cash on delivery because we pay our bens members are called bensor sisters every day. Since we have an estimate of the quantity each distributor takes, we produce accordingly.
This ensures that we neither stock inventory nor pay heavily for storage. We have about 32 distributors in Mumbai. Each distributor picks up an average of boxes per day from the depot.
This is where our job ends. We are not involved in how and where a distributor delivers as long as he stays within the area we 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, we first give duyog advertisement in newspapers for the areas we have marked.
Members from our marketing division mabila go and check the godown facilities and only on their approval do we appoint distributors. A distributor udyoh us Rs, as appad. We 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 us. When we discover that there is demand in a particular place, we open a new branch, like the recently briha one in Jammu and Kashmir.
Whether or not we have a centre in an area, our goods reach there. For example, we do not have any centre in Goa, but we have appointed a distributor for that area to ensure that Lijjat papads reach Goa. Our communication with distributors is regular through monthly meetings where we discuss their problems and also the issues that we may have about quality, price, reach, etc.
We do not have individual door-to-door salesmen or women selling from homes — only the appointed distributor for the area. The same mahial is followed uryog other products, but we may have different distributors and depots for different products. Exports Our exports alone account for Rs 10 crore Rs million. We are 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 do we 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, we send some of the daily production for export.
Click here for Lijjat collection flow chart Again with exporters, our responsibility ends with delivery. They are, both, expected and encouraged to check the goods on collection. After that, where and how they export is their call. Distributing profits We 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. We have a committee of 21 that decides how the ggiha are to be distributed.
We 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 papzd its profit and divides it equally among all its members. Mumbai has 12, members, the rest of Maharashtra has 22, and Gujarat has between 5, and 7, members. Decentralisation In two words — decentralisation works. We, at Lijjat, have never shied away from sharing power in all our activities.
The Sarvodaya philosophy has always been our uryog. All sister members of the institution are the owners. As I mentioned earlier, all profit or loss is shared. Only we have the authority to decide the manner in which profit or loss should be apportioned among ourselves. The committee of 21 members manages the affairs of the institution.
There are also Sanchalikas, or supervisors, for each centre to look after the daily affairs of a centre. But the geiha of the institution is such that each and every member can take any initiative or any geiha. At the same time, each and every member has the veto power. All decisions, major or minor, are based on consensus among members.
Empowering women in urban India : Shri Mahila Griha Udyog Lijjat Papad (English) | The World Bank
Any single member’s objection can nullify a decision. Another important fact about the institution is that no male can become a member and no male employee whether working or honorary or on salary basis has voting rights. Other than following this philosophy for our institutional set up, we have try to avoid the usual ‘management nightmares.
The branch system ensures that every activity happens within its own ambit. Testing for quality and packaging are done at every branch. Imagine if all the production from all over India were to be gathered at one central office where it would be checked for quality, packed, transported to various depots and distributors, if collection were to be centralised and if distribution of vanai and profits too were centralised.
Wouldn’t it be a logistical nightmare? Our solution is simple. Let the branch be responsible for all activities from production to packaging to collection and distribution of vanai and profit for its particular geographical region.
In following this simple system, we don’t solve management problems, but avoid them. Certain activities, however, are centralised. For one, all raw materials are purchased in Mumbai and then distributed to the 62 branches to ensure consistent quality of Lijjat Papad.
Shri Mahila Griha Udyog Lijjat Papad
Given the vastness of India, every region produces different quality of urad, rice, spices, et cetera. If procured locally, the final product would never be consistent in quality and Lijjat would have no USP unique selling proposition in the market. The other centralised process is the grinding of flour. Since the raw udtog is purchased in Mumbai, grinding the flour at our own mills helps reduce costs.
Pricing of duyog products is also done at the head office. Lijjat papads all over India cost Rs This price factors in the cost of raw materials, transport, taxes, distributors papaad, profit percentage and so on. Driven by values Every member who joins in pledges, “.
We are aware that it is one of the very important traditions of our Institution that neither sister-member nor employees take away wrongfully any money or material from the Institution.
Documents & Reports
Those who take away money or materials wrongfully from papxd Institution are either beggars receiving alms from the bens or thugs and robbers extricating bread from a sister’s mouth.
We discourage any kind of class distinction and do not declare ourselves as an organisation for poor or needy women. Our thinking is straight. Ours is a business like any other even if the structure is different. There is no place for feelings of pity, sympathy or charity among members. We also do not accept donation or charity of any kind, even if voluntarily offered.
I do believe that this has helped the organisation retain independence and brought quick growth. It has given us a clear vision of the path of progress. Maintaining proper accounts has always been on our agenda.
When we started out, Chhagan Bapa, our mentor had advised us to maintain accounts daily.