Lijjat Papad Case Study
On 15th March 1959, seven Gujarati women gathered on a terrace and started with the production of 4 packets of papad. And with a spark in their eyes, they started selling their papads to the known merchants in Bhuleshwar, a popular market in Mumbai. Journey of seven housewives from ₹80 to ₹800 Crore, Lijjat Papad, one of India’s oldest co-operatives supporting women, is an organization manufacturing various products papads, masalas, wheat flour, chapatis, detergent powder, detergent cake, and liquid detergent.
But what is so special about Lijjat Papad that it has been able to generate a revenue of ₹800 Crore empire merely by selling papads which in the conventional world is not considered to be a scaleable business? The answer to this question lies in the motto of Shri Mahila Griha Udyog Lijjat Papad i.e. Symbol Of Woman’s Strength. Women took this business forward and became the essence of this global movement.
The group got considerable publicity through word of mouth and articles in vernacular newspapers. This publicity helped it increase its membership. By the second year of its formation, 100 to 150 women had joined the group, and by the end of the third year, it had more than 300 members.
One of the most important rules of business is cost-cutting and these women knew this very well. By this time, the terrace of seven founders could no longer accommodate the members and the ingredients, so the kneaded flour was distributed among the members who would take it to their homes and make papads. By this, these women were able to save their profits by not renting a place for production. This also helped housewives to earn while making sure that working will not affect their housework. After completing the work women can concentrate on making papads then papads were brought back for quality check, weighing, and packaging.
In July 1966, Lijjat registered itself as a society under the Societies Registration Act 1860. In the same month, Khadi Development and Village Industries Commission, a statutory body set up by the Government of India for the development of rural industries, formally recognized Lijjat as a unit belonging to the ‘processing of cereals and pulses industry group’ under the Khadi and Village Industries Act. It was also recognized as a ‘village industry’. In 1966, KVIC granted it a working capital of Rs 8 lakh and was allowed certain tax exemptions.
After receiving their pot of gold with their papads they launched several other products. And their hard work and self-belief helped them achieve their pot of gold. In the 1980s and 1990s, Lijjat started exporting its products with the assistance of merchant importers within the UK, the US, Singapore, and other countries. Its annual exports accounted for quite US$2.4 million in 2001. In 2002, Lijjat had a turnover of Rs 300 crore and exports worth Rs 10 crore. Its current annual turnover is at Rs 800 crore.
What started from a small terrace is now a world-class business example. This proves that you don’t always need hefty amounts of funds to start a business, all you need is a vision and a right set of mind plus a brilliant idea💡. Dedication and determination go unsaid.
Thanks for staying from top to end🥳
Ishaan Sharma🙋♂️
