1. Shri Mahila Griha Udyog Lijjat Papad
A cooperative established in 1959.

2. 1. Produced and sold one of the simplest product,
famous amongst the Indian households, Papad.
2. Established by 7 ‘Women’
3. Started with a mere capital of Rs. 80
on the terrace of a building in Girgaum,
South Bombay.

3. The Entrepreneurs
• Founding members: Jaswantiben Jamnadas Popat,
Parvatiben Ramdas Thodani, Ujamben Narandas
Kundalia, Banuben. N. Tanna, Laguben Amritlar Gokani,
Jayaben V. Vithalani
• Mentored by Chaganlal Karamsi Parekh
• Guided by Shri. Dattanibapa

5. Current Leadership:
Jyoti Naik (President)
Associated since 1971, started rolling papad
Deputed to packaging section
By 1973, started managing inventory
Sanchalika in 1981
VP in 1989
Then President: Earning equivalent to 30 kg of
rolled papad in a day  attesting to the
organizational values

6. Objectives of Lijjat
 Maximize employment opportunities for women.
 To get the work for the society.
 To get mutual understanding, self service and
saving habit among the women.
 To increase the dealings power of women
members.

7. ITS VALUES
Lijjat believes in the philosophy of sarvodaya
and collective ownership.
SMGULP never accepts charity or grants.
SMGULP is like a family
SMGULP is like a revered place of worship.

8. SMGULP is a combination of three
concepts:
The Business concept
The Family concept
The Devotion Concept

9. THE BUSINESS CONCEPT
OPPORTUNITY VALUE
IDENTIFICATION CREATION

10. Opportunity Identification
• The major thrust:
 An existing market demand
 Skills needed could be found with any Indian lady
 Raw material can be procured from the closest outlet
• Differentiating insights brought by venture:
 Business can be made sustainable/profitable without high
initial investment
 Non-acceptance of any grant/aid/donation even if loss is
incurred
 Quality consciousness in any operation

11. Opportunity Identification
• Venture grew as a cooperative business
• 1962: Products were registered as “Lijjat” while group
was named “Sri Mahila Griha Udyog”
• Basic reasons for fast growth:
 Only for women venture which provided employment
 Women need not move away from home to join it
 Sense of ownership given to women
 No special skills needed to be successfully carry out operation
 A cooperative venture “for women, by women, of women”

12. ROADBLOCKS
• Not everything went smooth:
Production had to be halted due to Mumbai’s moist climate
• Such roadblocks made founding members better
prepared:
 they solved the problem by buying a cot and a stove
 As members grew & place became constraint  distribute
kneaded flour to members to prepare papad at home

13. VALUE CREATION
• Monetary value creation:
 Year 1: Rs. 6196
 Year 3: Rs. 1.82 lakhs
 Current figures: Rs. 300 crores (Rs. 12 crores export)
 Annual profit: Rs. 7 crores approx (2004 figures)
• Something beyond monetary contribution…
 Way to integrate women with the income generation
process at such a mass level
 Honing of skills and capabilities
 Reducing the patriarchal biases
 Unlike prior attempts, women as driver of their
empowerment

14. THE FAMILY CONCEPT

15. EMPOWERING WOMEN
• Something beyond monetary contribution…
• Employment opportunities without leaving homes, flexible schedules
• Transformation of life of around over forty thousand women through its
unique work ethics
 Linked social advancement to women empowerment
 Emphasis on having women from disadvantaged section
 Preventing expansion of inherent gap between rich/poor
 Average monthly salary of its members: above Rs. 3000/-

16. SOCIAL RESPONSIBILITY
• Since venture was based on sound principles,
members contributed in many activities as:
 Increasing availability of health care for their families
 Providing scholarships to their children
 Cooperating in building homes of each other
INDIRECT IMPACT:
Lijjat Products: Good quality affordable for masses
Enhanced social/cultural harmony beyond work-place
Active contribution to health, education & social service

17. SOCIAL RESPONSIBILITY
• Extending wealth acquired to social cause; few
examples:
 1979: First ever tarred (pucca) road built with help of Lijjat
 Educational and Hobby centers set up to teach skills as:
typing, cooking, sewing, knitting and toy making
 Rehabilitation work for earthquake affected in Chincholi
(Jogan): Financed construction of 50 houses for them
 Again, provided Rs. 50 lakhs aid for Bhuj earthquake
affected people

18. Assessing Impact & Effectiveness…
• Positions itself as: “A symbol of women’s strength”
• Created employment opportunities for over 40000
women in last 49 years
• Not only employment, gave them opportunity to
transform their way to live
• Equality and justice promoted by Profit-Contribution
schemes

19. PRESENT SCENARIO

20. Assessing Impact & Effectiveness…
• Sustained for such a long period as a profitable
venture itself proves a point for itself
• The most quantifiable assessor: Total sales of over
Rs. 3 Bn
• Organic growth (slow but steady) in a holistic way:
 No. of employees
 Achieving economies of scale (without blind automation)
 Achieved economies of scope
 Vertical integration of various process

21. Assessing Impact & Effectiveness…
• Economies of scale (without following blind
automation):
 Less emphasis on automation of processes
 Rather, achieved it through increased involvement of
women members
 Allowed members to work from their own place
 Expansion in various cities/states: 67 branches and 35
divisions

22. Assessing Impact & Effectiveness…
• Economies of scope (diversification):
 Lijjat started diversification in fields related to papad
making
 The products needed similar raw material or skills
 The existing supply chain was used very efficiently
 Khakhra, spices, wadi, wheat flour, bakery items are few
examples
 Major step to diversify in 1988: Introduction of Sasa Soap
 Again, identified opportunity: Soap market in India, then
rose by 15% YoY

23. Assessing Impact & Effectiveness…
• Vertical Integration:
 Large scale production  Make rather than Buy
 Various processes like:
 Flour mills
 Print division
 Polypropylene packing
were undertaken
 Aimed at supporting production processes without
incurring extra cost

24. Assessing Impact & Effectiveness…
• Attracted international trade opportunities:
 Late 1980’s: Started exports
 1996: VP of Uganda visited with a view to setup such a
venture
 Over Rs. 12 crores of exports
• A few set backs at various times:
 Initial attempts to expand by opening branches went
unsuccessful
 Ownership issues cropped up
 Issue of duplicate players
 Levying of taxes of Sasa Detergent’s sale

25. Assessing Impact & Effectiveness…
• But, overall a venture that created high positive
social impact
• Acknowledgement by various authorities:
 “Best Village Industries Institution“: from KVIC for period
1998-99 to 2000-01
 Business Woman of the year in 2002
 PHDCCI Brand Equity Award in 2005

26. Manager
Member-Sisters
Assistant Manager
Workers