Lijjat papad

Strategies of Shri Mahila Udyog Lijjat Papad

1. Shri Mahila Griha Udyog Lijjat Papad

2. Introduction Shri Mahila Griha Udyog Lijjat Papad, popularly known as ‘Lijjat’ is an Indian women’s cooperative involved in manufacturing of various fast moving consumer goods (FMCG). Started in the year 1959 with an initial investment of Rs.80 and it has an annual turnover of around Rs.1600-1800crore with Rs.80crore in exports (as of 2018). Spread all over India in 69 centres and 31 divisions in different states

3. Objective and Vision The objective of the institution is to provide employment to the ladies to enable them to earn decent and dignified livelihood The vision of the organisation is to enable women to become self-reliant and self-confident

4. Mission Shri Mahila Udyog, the makers of the famous Lijjat Papad, is an organisation which symbolises the strength of a woman. Only women can become the members of the organisation. It focuses of 3 different concepts:- The concept of business (Production of quality goods at reasonable prices) The concept of family (Mutual family affection, concern and trust) The concept of devotion (Work is Worship)

5. Strategy Key Policies Stringent Sourcing policies Imports from where the best quality is found Transparency policies Managing committee selected with common consent No inside politics Standard Operating Procedure Proper quality check and assurance

6. Corporate Strategy Business based on Gandhian Principles (Sarvodaya and collective ownership) Profit Sharing Model (Profits are shared among the Members of the organization) Cooking skills into business model No equity only debt Debt from banks @ 12% interest(8% paid by KVIC) No credit method Less capital expenditure and high operating expenditure (Labour-intensive technique)

7. Business Strategy Product mix Papad (Fourteen flavours, including lasan, moong, mirch, Punjabi and udad Khakhra Appalam Masala Vadi Gehu Atta (Wheat flour) Bakery products Chapati SASA Detergent Powder. SASA Detergent Cake (Tikia), SASA Nilam Detergent Powder and SASA Liquid Detergent

8. Cont. Market segment and pricing Target to middle and lower class society at affordable price Cost + Pricing (RM, Rolling, Packaging, Sell & Distr.) Prices vary from Rs. 15 (100 gm) to Rs. 300 (2.5 kg) Market Share 90% in case of Papad and 15-20% in case of others Packaging Packing bags manufactured by organisation itself. By doing this they ensure high standards and maintain quality. Also this prevents duplication of the product.

9. Cont. Promotion Believed that best promotion will be verbal. Concentrated more on cost effectiveness and quality. Used both electronic and print media. Motivation factors for distributors. Advertising Communicated its crispiness and quality through ads Maximum advertising is done by airing on various channels.

10. Functional Strategy Organization structure and Production

11. SWOT Analysis Strength Sincere Hard work Maintaining the same standard over last 60 years Have a unique strength Weakness Space crunch and rainy season Water Opportunity Tie up with Mumbai Dabbawala for distribution Expand Chapati into full fledged meal service Threats In competition major threat by Ganesh Papad (capital intensive) Other products: Spices – Haldiram and MDH, Detergent – P&G Fake Lijjat Papad

12. Future Strategies it may adopt They are planning to diversify its product portfolio by adding new products like instant noodles and adopt automation. They will try to bring more innovation like more varieties, sizes and different combination. Improvement of Packaging

13. Conclusion The important thing to learn from this organization is that, “sticking to its core values the past sixty years”. The institution make women more self- confident and self- dependent and provides platform to improve their status in society.

14. Reference “Successful women Entrepreneurs: Shri Mahila Griha Udyog Lijjat Papad (Lijjat)”, ICFAI Centre for Management Research. Retrieved 8 Jan 2007. www.lijjat.com https://youtu.be/PCDqFafx9o4 https://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-supplies-liquor/minister-proposes-product-diversification-for-lijjat/60706517

15. Thank you