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EXECUTIVE SUMMARY
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In March 1959, seven semi-literate women from Gujarat came together to supplement their
family incomes and create a sustainable source of employment with the skill they knew -
cooking. The seven women were Jaswantiben Jamnadas Popat, Parvatiben Ramdas Thodani,
Ujamben Narandas Kundalia, Banuben, N. Tanna, Laguben Amritlar Gokani, Jayaben V.
Vithalani, and one more lady whose name is not known. They started out on the terrace of a
large, old, residential building called Lohana Niwas in Girgaum, a thickly populated area in
south Mumbai. This is where the seven housewives, bored and confined to their homes, saw
an opportunity to set up an organization 44 years ago.
Entrepreneurship was something these women had never heard of. The venture was
immensely successful and marked the genesis of a cooperative for the women, by the
women and of the women. In 1959, these women borrowed Rs 80 from Chaganlal Karamsi
Parekh, a member of the Servants of India Society and a social worker.
This debt had to be returned within a stipulated period of time. The women commenced
business by selling Papads to a merchant known to them. Gradually, they bought a cupboard
to store raw materials and utensils on the terrace. In the first year, they had to stop production
during the rainy season as the rains would prevent the drying of Papads. To solve this
problem, by the next rainy season, they bought a cot and a stove. The Papads would be kept
on the cot and the stove below so that the process of drying could take place in spite of the
rains. Within three months, there were about 25 women making Papads, and within six
months, they were able to reward themselves with half a gram of gold each with the profit
they had made.
The group used considerable publicity through word-of-mouth publicity and articles in
vernacular newspapers. By the second year of its formation, 100 to 150 women joined the
group, and by the end of the third year more than 300 women were rolling Papads.
Lijjats full name is Shri Mahila Griha Udyog Lijjat Papad, meaning womens house industry,
and today it has 61 branches and 32 divisions all over India. More importantly, there are as
many as 40,000 women making popadoms at home. Every day, they roll a staggering 19
million between them. But despite these vast numbers, the grassroots approach of the
business has never changed. The success of Shri Mahila Griha Udyog Lijjat Papad (now
onwards Lijjat) lies, among other things, in its ability to offer self-employment opportunities
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to women at all its 61 branches. Any woman looking for work can approach any of Lijjats
branches and join the 40,000 plus strong team of Lijjats sister-members without any fuss,
and earn Rs 2,000 to Rs 3,000 every month for her roughly six hours of work everyday from
home. That such a system did not collapse under the weight of its growing number of workers
but, on the contrary, gathered strength from them and became a shining example of a business
based on the sound but apparently impractical Gandhian concept of Sarvodaya and trusteeship
is the biggest surprise element in Lijjats success story. The company has grown into a
corporate with an annual turnover of Rs 300 crore for many years.
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INTRODUCTION
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Industry is the segment of economy concerned with production of goods and scale industry is
a term which applies to the small entrepreneurs who are engaged in manufacture and
production on a micro scale. It mainly refers to agro lined rural industry which doesnt require
huge capital influx and large Infrastructure. These small scale industries also include the
indigenous cottage Industry and the handicrafts industry.
The development of small scale industries is very important for a country like India which has
mainly rural economy. These small scale industries which are mainly non- based in nature
would provide job for millions of Indians and would contribute largely to the overall growth
of the Indian economy .The small scale Industrial sector continues to remain an integral part
of Indian economy with significant contribution to GDP, industrial production and
employment generation in India
The Small Scale Industry sector, as an important segment of the Indian economy, accounts
for 95% of the industrial units, 40% of output of the manufacturing traitor, and 35% of the
total exports and provides employment to around 18 million people.
This sector covers a wide spectrum of industries categorized under small, tiny and auxiliary
segments. In fact, it encompasses the continuum of the
liaisons handicrafts units at one end and modern production units with significant
Investments, on the other, producing a wide range of over 7500 products.
The SSI sector has been receiving special attention from the policy makers in expressing its
requirements, be it credit, marketing, technology, entrepreneurship Envelopment, fiscal or
infrastructural support. .ii sector, thus, acts as a prime mover in pushing up the industrial
growth and ulves boost to overall economic growth. Entrepreneurship, self employment and
employment. and enterprise creation thus provide a solution to the crisis of both
unemployment and disguised
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SMALLSCALE INDUSTRY IN INDIA:
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Industry is the segment of economy concerned with production of goods. Industry is a term
which applies to the small entrepreneurs who are engaged in manufacture and production on
a micro scale. It mainly refers to agro based rural Industry which doesnt require huge capital
influx and large Infrastructure.
These small scale industries also include the indigenous cottage industry and the handicraft.
industry The development of small scale industries is very important fora country like India
which has mainly rural economy These small scale industries which are mainly agro- based in
nature would provide job for millions of Indians. and would contribute largely to the overall
growth of the Indian economy .The small scale industrial sector continues to remain an
integral part of Indian economy with significant contribution to GDP, industrial production
and employment generation in India
It is rejoicing to observe that the SSI sector has been a prime contributor to the overall
growth of the industrial sector in India The growth rate recorded by the SSI sector has
normally been higher than that of the industrial sector as a whole .Maintaining the same
frame, the sector is poised to record a higher growth in the range of7.5- 8 5 % during 1999-
2000 in comparison to the 6.5% target growth in GDP during this period
The small scale industry sector has immersed over five decades as highly vibrant and
dynamic sector of the Indian economy. Today , this sector accounts for about 95 % of the
industrial units and is contributing about 40% of value addition in the manufacturing sector,
nearly 80% of manufacturing employment and about 35% of exports ( both direct andindirect). More than 32lakh units are spread all over India. Countries producing over 7500
items and providing employment to more than 178 lakh persons.
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The government of India has helped the small scale sector through supportive
measures since adoption of planned economy model. The basic policy support for SSI sector
has its route in the Industrial Policy Resolution of 1956. Rather, the Industrial Policy
Statement, 1977, laid emphasis on reservation of terms. The reservation of economically
viable 551s began with a list of 47 items rich was gradually extended to many products.
Presently, 811 items are on the reserved list. Other policy supports which could be Opted are
excise exemptions , traded under priority sector lending from banks and fln8ncial institutions ,
marketing support through reservation of items for products from SSI sector for government
purchases, providing infra structure facilities like fields, plots in industrial states ,
technological support, new management techniques, training and entrepreneurship
developments.
sent there are 2 types of 551 Sectors: -
1) REGISTERED SSI SECTOR,
2) UNREGISTERED SSI SECTOR. -
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3.1: REGISTEREDSMALLSCALESECTOR
Out of 23, 05,725 registered units surveyed, it is estimated that 8, 68,021 units were closed.
Thus, the number of closed units works out to be 37.65 % .
The number of working units is l4,37,704 constituting 62.35%of the units.The state- wise
distribution of working and closed. In termsof the number of working units, five States, viz;
Uttar Pradesh (12 %), Tamil Nadu (11.7 %), Gujarat (11.3 Io), Kerala (10.5 %) . Karnataka
(9.1%) had a cumulative share of 54.6 %. With regard to Closed UNITS , five States, viz.,
Tamil Nadu (16.2 %), Uttar Pradesh (13.4 k), Kerala (8.4 %) Madhya Pradesh (7.4 %), and
Maharashtra (7.1 %) had a combined SHARE of 52.5%.
Based upon the analysis of the detailed information collected from the Working USL the
results in terms of important parameters in respect of the Registered SSI SECTOR is
presented below:.
Size of the Registered SSI Sector :
The size of the Registered 551 Sector (Working Units) is estimated to be 4,37,704. The proportion of
SSIs is 65.7 %. About 4.5 % of the SSI units were ancillary units. The proportion of the units in the
Registered SSI Sector operating in rural areas was 45. 8%
NATURE OF ACTIVITY:
Of the units in the Sector were engaged in manufacturing! assembling! processing, whereas
7.54 % of the units in repair and maintenance operations. The remaining 30.33 % of the units
were in the Services Sector.
TYPE OF ORGANIZATION:
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The majority of the Units (90.09%) were being run as proprietary units whereas
About 6.36 % of the units were being run in the form of partnership firms and 2.12% of the units as
private companies. The rest were owned by either cooperatives or Trusts.
TYPE OF MANAGEMENT:
An SSI or a SSSBE managed by one or more women entrepreneurs in proprietary concerns,
or in which she/they individually or jointly have a share Capital of not less than 51 % as
partners/share holders! Directors of Private LIMITED COMPANY/ Members of Co-
operative Society is Called a Woman - Enterprises. It was found that 11.08 kof the Units
in the Registered SSI Sector WERE Women Enterprises, where as the number of units
actually being managed by Women was only 9.36 %. From the social point of view, 8.03%
of the units were
managed by Scheduled Caste (SC) Entrepreneurs, 2.5 % by Scheduled Tribe (ST)
Entrepreneurs and 40.92 % by Entrepreneurs belonging to Other Backward
Class (OBCs). Thus, 51.45 % of the working units in the registered SSI Sector
Wire being managed by entrepreneurs belonging to socially backward classes.
EMPLOYMENT:
The per unit employment in the Registered SSI Sector was 4.6. About 22 % of the Units were
being solely run by the entrepreneurs themselves and the number of units employing a
maximum of 7 persons was 89 %.
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3.2: Major Industries in the Registered SSI Sector
To Identify the economic activities, the 5-digit National Industrial Classification
1998(NIC-1998) brought out by the Central Statistical Organization was adopted with.
suitable modifications. The top hundred economic activities in the Registered SSI Sector have
been identified at 5-digit level of NIC 1998 in terms of number of units,gross output and
employment and incorporated. Among these, the top 10 employment generating industries per
rupees one lakh of fixed investment are given. Rice Milling Industry topped the list of
industries in terms of Gross Output.
Among the top 50 industries having heavy fixed investment, its contribution to generation of
employment per rupees one lakhs of fixed investment was maximum of 0.37.
The first ten major industries were identified at 3 digit level of NIC 1998 from four different
angles.
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Percentage distribution of fixed investment by industry
(registered sector)
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289 Manufacture of other fabricated metal products; metal working service activities 5.13
242 Manufacture of other chemica1 products 4.55
252 Manufacture of plastic products 453
269 Manufacture of non-metallic mineral products n.e.c. 4.24
222 Printing and service activities related to printing 4.24
181 Manufacture of wearing apparel except fur apparel 4.10
171
271
Spinning, weaving & finishing of textiles
manufacture of basic iron & steel
3.82368
151 Production , processing & preservation of meat, fish,fruits, vegetable, oils & fats. 3.67
Others 51.45
Total 100
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Percentage distribution of fixed investment by
industry (unregistered sector)
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1
Manufacture of wearing apparel except fur apparel 7.65
52
6
Repair of personal and house hold goods 5.80
153 Manufacture of grain mill products. starches and starch
products, and prepared animal feeds
.
5.80
642
Activities of STD/ISD) booths, Teleprinter/Fax services.Operating EPABX under Franchises - 4.76
28
1
Manufacture of structural metal products , tanks, reservoirs
and steam generators. 2.99
17
1
Spinning, weaving and finishing of textiles. 2.82
271
. Manufacture of Basic Iron & Steel 2.74
22
2
Printing and service activities related to printing 2.46
749 Business activities not else where classified 2.41
. Others 62.57
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Total 100.0
0
3.3: OPPORTUNITY IN SSI UNIT:
The opportunities in the small-scale sector are enormous due to the following factors:
Less Capital Intensive,
Extensive Promotion & Support by Government,
Reservation for Exclusive Manufacture by small scale sector,
Project Profiles,
Funding - Finance & Subsidies
Procurement,
Raw Material Procurement,
Manpower Training,
Technical & Managerial skills
Tooling & Testing support,
Reservation for Exclusive Purchase by Government,
Export Promotion,
Growth in demand in the domestic market size due to overall economic growth,
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Increasing Export Potential for Indian products,
Growth in Requirements for ancillary units due to the increase in number of units.
Greenfield units coming up in the large scale sector. Small industry sector has perfomed
exceedingly well and enabled our country to achieve a wide measure of
growth and diversification.
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REASONS FOR CONCERN
Sr no Reasons % of units
1 Not interested 40.57 %
2 Complicated procedures 4.0%
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3 Clearance not available from municipality 1.21%
4 Local govt.laws/regulations do not permit 1.93 %
5 No knowledge of such provisions 52.29 %
3.4 : PRODUCTS UNDER SSI:
There are about twenty-one major industry groups in the small scale sector.
These are listed below:
Food Products
Chemical & Chemical Products
Basic Metal Industries
Metal Products
Electrical Machinery & Parts
Rubber & Plastic Products
Machinery & Parts Except Electrical goods
Hosiery & Garment - Wood Products
Non-metallic Mineral Products
Paper Products & Printing
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Transport Equipments & Parts
Leather & Leather Products
Miscellaneous Manufacturing Industries
Other Services & Products
Beverages, Tobacco & Tobacco Products
Repair Services
Cotton Textiles
Wool, Silk, Synthetic Fiber Textiles
Jute, Hemp and Mesta Textiles
Other Service
A survey of indices of industrial production ( lIP )maintained for these major industry
groups reveals that the sunrise industries are and on what segments the sun has set. SSI units
produce an amazing variety and type of products. Over 7500 products are known to be manufactured
in this sector. Even in a particular product, there would exist a wide range of qualities or
specifications catering to different market segments, particularly in .(consumer/household products. )
Registration of Small Scale Industry:
The table below indicates the historical evolution of the definition of small lie and ancillary units:
YEAR SMALL SCALE INDUSTRIES ANCILLARY INDUSTRIES
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1955 Upto Rs. 5 lacks in FCI and employment less 50/100 workers with/without
power.
1960 Upto Rs. 5 lacks in FCI. - --
1966 UptoRs. 7.5 lacKs in P& M Upto Rs. 10 lacks in P &M..
1975 Upto Rs. 10 lacs in P & M Upto Rs. 15 lacks in P
&M.
1980 Upto Rs. 20 lacs in P & M Upto Rs. 25 lacs in P &
M
1985 Upto Rs. 35 lacs in P &M . Upto Rs. 45 lacs in P &
M
1991 Upto Rs. 60 lacs in P & M Upto Rs. 75 lacs in P & M
1997 Upto Rs. 300 lacs in P & M Upto Rs. 300 lacs in P &
M
3.5 :REGISTRATION AUTHORITIES :
1. For SSI units: General Manager District Industries Centre Application to be made on
prescribed forms
2. For Large & Medium Industrial units Secretariat for Industrial Approvals, Ministry of
Industry, Udhyog Bhavan, New Delhi - 110001 IL-Form with 7 spare copies along with fee of
Rs. 2500/-
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WOMEN ENTREPRENEURSHIP
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Concept
Women entrepreneurs may be defined as the women or a group of women who initiate, organize andoperate a business enterprise. According to Schumpeter an entrepreneur in an innovating individual
who introduces something new into the economy. However, such innovators are rarely found in the
underdeveloped countries. What is primarily needed in this countries is not innovators, but imitators
or the humbler entrepreneurs capable of exploiting the hitherto existing possibilities on a small scale.
The enterprise of these people may be small and unimpressive when judged by standards of the
developed countries. But the high tendency to imitate can set in motion the chain reaction which
leads to cumulative progress.
Thus in the Indian context, entrepreneur is more an adapter and imitator than a true innovator. Any
woman or group of women which innovates, imitates or adapts an economic activity may be called
women entrepreneurship.
According to the government of India, a women entrepreneur is defined as an enterprise owned and
controlled by a women and having a minimum financial interest of 51 percent of the capital and
giving at least 51 percent of the employing generated in the enterprise to women. Women
entrepreneurs are opposing the condition of employing more than 50 percent women workers. They
point out that this condition is discriminatory. Enterprises set up by women should be provided with
incentives and support on the basis of their ownership and management characteristic and not linked
with employment of women.
4.1: INTRODUCTION
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Women Entrepreneurs may be defined as the women or a group of women who initiate, organize
and operate a business enterprise. Government of India has defined women entrepreneurs as an
enterprise owned and controlled by a women having a minimum financial interest of 51% of thecapital and giving at least 51% of employment generated in the enterprise to women. Like a male
entrepreneurs a women entrepreneur has many functions. They should explore the prospects of
starting new enterprise; undertake risks, introduction of new innovations, coordination administration
and control of business and providing effective leadership in all aspects of business.
4.2 : FUNCTIONS AND ROLE OF WOMEN
ENTREPRENEURS
Like a male entrepreneur, a women entrepreneur must perform five functions:
Explore the prospects of starting new enterprises.
Undertake of risks and the handling of economic uncertainties.
Introduction of innovations.
Coordination, administration and control.
Routine supervision.
All these functions appear to be some what uneven in character. Moreover, these functions
are not always of equal importance. For instance, risk taking and innovation are paramount
for establishing or diversifying an enterprise. Coordination and supervision became
increasingly important in improving the efficiency and assuming smooth, balanced operation
of the undertaking. In women enterprises, usually the same lady performs all these functions.
Most likely, she is also the owner of the enterprise.
Women entrepreneurs can more easily undertake three types of industrial enterprises:
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operate purely as a sub-contractor on raw materials provided by the customer;
Manufacture the item to the long or short term order of another enterprise usually a
large scale unit; and
Manufacture the item for direct sale in the market. Generally, the first two types of
enterprises are known as ancillaries.
Women entrepreneurs produce both consumer goods and intermediate goods which are used in the
production of the other articles.
Women Entrepreneurship in India
Women Work Participation
24
States No of Units
Registered
No. of Women
Entrepreneurs
Percentage
Tamil Nadu 9618 2930 30.36
Uttar Pradesh 7980 3180 39.84
Kerala 5487 2135 38.91
Punjab 4791 1618 33.77
Maharashtra 4339 1394 32.12
Gujarat 3872 1538 39.72
Karnataka 3822 1026 26.84
Madhya Pradesh 2967 842 28.38
Other States &
UTS
14576 4185 28.71
Total 57,452 18,848 32.82
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4.3: BACKGROUND
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Country Percentage(%)
India (1970-1971) 14.2
India (1980-1981) 19.7
India (1990-1991) 22.3
India (2000-2001) 31.6
USA 45
UK 43
Indonesia 40
Sri Lanka 35
Brazil 35
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Across centuries and across time, the role of women remains rooted into eternity. It forever remains
the same and at the same time goes through many transitions. It takes centuries for womens roles to
unfold in different forms, shapes and sizes and to move in new directions. There are some locales
where women live in a bygone century chained and shackled to the social structures and coding and
wishes of others who carve a code of conduct on stone. Whereas there are other locales where
women struggle to find freedom and space to define their roles in a new context with new
occupations and forge a new path for their lives.
Once upon a time the large part of the world was designed such that men could only set up
enterprises. Then there were women who by compulsions of circumstances took up income
generating activities to sustain themselves and their family. The men of these women were either not
there or if they were there would not or could not take the responsibilities of sustaining the family.
Succession planning, leaving an heir, an inheritor and a continuity of the lineage is for men and their
sons and their sons. It is rare for a man to plan for handing over to the daughter or daughters
daughter. The reality of women entrepreneur and passing the enterprise to a daughter will be the new
reality and phenomenon of Indian business.
The role of Indian women has ranged from that of a deity to that of a devdasi, from being pure to
being vulgar, from being supreme to being downtrodden, and also as innumerable manifestations ofvirtue or vice. The role of Indian women has undergone dramatic and drastic changes from era to era,
while within the eras themselves there have existed simultaneous contradictions. This in itself has
created problems for contemporary women in experiencing a continuity of their identity with in the
society.
What a woman growing up in Indian society interjects is perhaps a collage and a flux of attitudes,
perceptions, roles and locations of their identity. It seems to be difficult to take a logical look at all
this. To every yes there is a no and to every no there is a yes.
The interjected collage does not, therefore, make it easy for women to define their role and take
leadership roles and to enunciate directions and goals for themselves
Then came a time when the order of the world changed. A new form and a new structure emerged.
This took thousands of years and tears of millions of women who with courage moved the mountain
of debris of beliefs and freed themselves from the chains and shackles of centuries.
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CONTEXT OF CHANGE
Increasing globalization
Impact of Technology
Impact of Media and Impact of other cultures
Impact of social, economic, and political cross currents of the world
Unforeseen and unanticipated events across the world
Let us look at the context of growing up for women in the last half a century.
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4.4 : SOCIO-CULTURAL CONTEXT OF WOMEN
1. Each country over centuries evolves a cultural heritage, which is carried by its institutions and
people.
2. Each culture evolves a social design with social structures and its processes to maintain the
society.
3. The socio-culture context has institutions, traditions and rituals, which fosters values of
living, modes of making choices and meanings in relationships.
4. Society designs and defines roles for its women and men both in family and home settings as
well as occupational and work settings.
5. Each country has a cultural, social, religious and political history with its ideology and
philosophy. This influences both social and occupational roles that have enduring roots.
6. Each society has economic developmental thrust through industrialization and thereby
designs new occupational roles for both its women and men.
7. Alternative models of occupational roles are logically and rationally understood but not
emotionally responded to by the society
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Becoming an entrepreneur did arouse a little dilemma in many women who have the potentialities for becoming one. However, to earn quick money was the basic reason for women to start
entrepreneurship. They had a deep-seated need for a sense of independence along with a desire to do
something meaningful with their time and to have their own identity instead of remaining closeted
behind their husbands nameplate. Women with high education view at entrepreneurship as a
challenge, while for women with no education background find entrepreneur merely a means for
earning money.
These women needed littlepulland pushfor venturing ahead as their circumstances forced them.
On other hand, women, coming from good financial background need pull and push as at times
they themselves were not aware of their own inner strengths and resources and wanted their
husbands/family members to decide the ways it should be utilized. Also the women of the upper crust
society were hesitating to put forth the idea of taking up a non- traditional role.
It is also found that compared to men, women were less concerned with making money and oftenchoose business proprietorship as a result of career dissatisfaction. Secondly, women find
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entrepreneurship as a tool of meeting their career needs and childcare role. However, there are drastic
differences in the way the men and women owned enterprise views their activities.
Most women business owners in Indian organization were either housewives or fresh graduates with
no previous experience of running a business. These women business owners were in traditionally
women oriented business like garments, beauty care, and fashion designing, which either do not
require any formalized training or are developed from a hobby or an interest into a business. The
classic example will be of herbal queen Lady Shehnaz Hussain who started her herbal-based
treatment from a relatively small scale. Infact, she started literally from her kitchen domain to a chain
of beauty parlors spread out across the nation and world. Shehnaz started her business as a hobby on
a relatively small budget and made an herbal empire to be inherited by her family.
Women, who had started out their own business without any mentor or legacy, had created their own
plateau and also earned many feats. For example, Shehnaz Husain, who had neither a legacy nor a
mentor to follow, created her own legacy for her family.
What motivate these women to venture out in the no mans land? The primary motive is for engaging
in some economically gainful activity is:
1. Making money/making more money to support the family and,
2. A desire for gainful time structuring.
The first motive is found at the lower end of the socio-economic scale. However, the factors that
initiate a women to take the plunge are usually environmental, for example, failure of husband
business, sudden death of a father what have been the processes of change for women in the context
of the tapestry being woven globally and nationally? Let us look at some of the key changes for
women over the last five decades.
WOMEN ENTREPRENEURS OF THE FIFTIES
These women fall into two categories. One set took to creating and managing an entrepreneurial
activity where there was no income generating male. The woman gave up her education and any
other aspirations for herself and became the income generator for the rest of the family.
The second category was the one who lived by social roles and woke up one day to find that either
she took charge of the enterprise the husband had left or she and her own family would be the losers.
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For both this sets of women, it took enormous courage to break through the social maps and coding.
However, such women in the fifties were few. For many others the businesses were taken away by
relatives and the women and their families lived their lives as dependants while they had the
resources or did not have the resources.
WOMEN ENTREPRENEURS OF THE SIXTIES
Sixties were the decade when many women educated in schools and colleges began to have
aspirations. These were largely unarticulated. Women accepted the social coding of the socio-cultural
traditions and married. But soon they took small steps to start small one-woman enterprises at home
and from home. These were still activities for self-occupation and engagement but behind these were
the seeds of aspirations to discover a meaning for the self and economic choices. This was still not
for economic autonomy or economic self-sufficiency.
WOMEN ENTREPRENEURS OF THE SEVENTIES
1. This was the decade when a critical mass of women completed their education and entered
the work force as professionals. The women in this decade opened up new frontiers. These
women were unlike their mothers and had not only aspirations but also ambitions. The opted
for self-employment be the enterprise a one woman enterprise or who employed several
others. This was an active step swimming upstream and walking uphill. This choice was not
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out of compulsions or helplessness. It was an active choice to take charge of ones life. For
many this choice began in their parental family and continued in their own personal homes.
2. Women regarded work as an integral aspect of their life space.
3. Income generation and a career choice where both the social system and occupation were
equally significant
4. Educated and qualified the women aspired for a different role and life vis--vis their mothers
and grandmothers.
5. The women wanted homes, marriage and children as well an occupation.
6. The women accepted the social traditional role behaviour from the older generation but fromtheir husbands, colleagues and children they expected understanding and support in their
occupation choice. They looked for redefinition of systems and redesigned interfaces across
the systems and institutions they worked with.
7. In entrepreneurial roles the women were willing to carry their share of the work
responsibilities and also wanted the enterprise to grow and succeed. They wanted their voices
to be heard as leaders to employees and as managers of the enterprise to the outside business
environment
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WOMEN ENTREPRENEURS OF THE EIGHTIES
The women entrepreneurs of 50s. 60s, and 70s had accepted both their social an occupational
roles. They played the two roles and tried to balance both. However, by the time eighties came
around, the women were educated in highly sophisticated technological and professional education.
Many had medical, engineering and similar other degrees and diplomas. Many entered their fathers
or husbands industry as equally contributing partners. Women in other spheres opened their own
clinics and nursing homes and many more opened up small boutiques, small enterprises of
manufacturing and entered garment exports. This was the decade of the breakthrough for women in
many fields and many frontiers. Women made personal choices, stood up for their convictions and
had the courage to make new beginnings. However, all these choices and beginnings was a not
smooth sailing. For many, the society was hostile, the family was opposing and non-supportive and
the woman carried the guilt of not playing the traditional and appropriate social roles viz. that of
being a good mother.
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WOMEN ENTREPRENEURS OF THE NINETIES
The women entrepreneurs of the nineties were qualitatively a different breed of women. These
women already had a role model in the two earlier generations of women.
The women of the nineties were capable, competent, confident and assertive women. They knew
what choices to make, they were clear as to what they wanted to do and they went ahead and did it.
The nineties have thrown up many names of women who initiated an enterprise, fostered it and
nurtured it to grow. There were many others who entered the big enterprises of their fathers and
husbands and contributed it with their competencies and capabilities. Sometimes they outshone the
names of their fathers and husbands. This was the first time the concept ofthe bestrather than
amale heirbegan to be talked about. The fathers thought ofinheritanceor alegacyto
adaughterthan just a son who may have been incapable and incompetent.
Women in the nineties have often questioned their traditional coding of their roles and have become
conscious of the voice of their own identity. With economic independence, women have acquired a
high self-esteem and have also discovered that they are able to deal with situations single-handedly.
In situations of mis-match in marriages, physical violence, demands for dowry, pushing the women
into socially confirming roles and other forms of social psychological harassment women do stand upto make their statements and make difficult choices. Todays women are fearless and have learnt to
live alone, travel alone, and rear children alone when failures in marriage and life partnerships occur.
Some women have preferred to remain single, are leading happy and contended lives and are
successful in their work. . Many couples today, opt for leading a life without children, and prefer to
focus on work, relationships, and the joy of experiencing freedom. Many and more and more women
in nineties have made up their minds to have a single child in order to meet the demands of home and
work and have very well been able to integrate their multiple roles in multiple systems.
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THE WOMEN ENTREPRENEURS OF THE 21ST CENTURY
This is the century of telecom, IT and financial institutions. Womens expertise in all these industries
is beginning to emerge and women are emerging as a force to reckon with. Many of these new
industries are headed and guided by women who are seen as pioneers and mavericks. The loci of
power have shifted away from traditional venues such as Old boys Clubs, Golf courses and Cigar
smoking rooms to power now being vested with energetic new upstarts working out of their homes or
on their computer terminals from homes. This new cauldron of opportunity can become the
proverbial melting pot for professionally trained and enterprising women. Here there are fewer
barriers to overcome, less pre-conceived notions, fewer well- entrenched assumptions and rules and
lesser gender agenda in the secondary environment. The transition to the next millennium is where
the women will create new paradigms of being a daughter who takes the responsibility of her parents,
is a wife who wishes to create a home and a family, a mother who takes charge of the children to
make themthe children of the new millennium. She is also the entrepreneur who builds an enterprise
and discovers her relevance and meaning of her life in herself. She accepts the uniqueness of her
identity and is willing to share the space. Simultaneously with all the dreams of togetherness she
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searches for mutuality, dignity and respect. She is also open to a life without marriage and a
parenting without a father.
Women of today have a new avatar in the free rolling 90s. She the Jill of all trades and her children
are tickled by their super-mom. Infact, many sons unhesitatingly describe themselves as Mammas
boys, which in the 90s is no longer considered to beSissybutSavvy. The children, especially
their sons have decided to break the age old tradition of following the fathers shoes. Instead, the
children of 90s opt to follow in their mothers shoes. For example, Sharmila Tagore inspired her son
Saif to follow her to Bollywood rather than husband Pataudi to Lords.
Similarly, the queen of the chef world, Tarla Dalals son Sanjay Dalal, an MBA degree holder,
decides to make his moms cooking as a career rather than to join his fathers industrial equipment
business.
These mother-son combination shows that women have been successful in inspiring their son to
follow in their path, where earlier the son were prescribed to ride in their fathers way. However, the
next millennium offers a space beyond the present horizon where, instead of hope there is active
engagement with the world, instead of dreams there are commitments, instead of aspirations there are
choices, instead of ideals there are convictions and instead of searching for bestowals and
affirmation there is the acknowledgement of ones own uniqueness of identity. It is in this discovery
that she can create and build an industrial empire from the first steps that she would have taken.
In the next millennium, Indian women would have to cross a major threshold and enter an Unknown
land. They will have to walk a path where none existed with a sense to discover. They will have to
encounter and live with excitement and enthusiasm as well as threat, fears, anxieties and terror. It is
the trust in the self, of the resource to be generated, of the courage to journey forth in a new land; to
live through the terrains of uncharted land that the women of today will shape the new identity. They
will discover the voice, which has been silenced for centuries to sing the songs of life and living and
to discover the joys of experiencing the beauty around.
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STATUS OF WOMEN ENTREPRENEURS
Since the 21st century, the status of women in India has been changing as a result to growing
industrialization and urbanization, spasmodic mobility and social legislation. Over the years, more
and more women are going in for higher education, technical and professional education and their
proportion in the workforce has also been increased.
With the spread of education and awareness, women have shifted from the kitchen, handicrafts and
traditional cottage industries to non-traditional higher levels of activities. Even the government has
laid special emphasis on the need for conducting special entrepreneurial training programs for
women to enable them to start their own ventures. Financial institutions and banks have also set up
special cells to assist women entrepreneurs. This has boomerang the women entrepreneurs on theeconomic scene in the recent years although many womens entrepreneurship enterprises are still
remained a much neglected field. However, for women there are several handicaps to enter into and
manage business ownership due to the deeply embedded traditional mindset and stringent values of
the Indian society.
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BARRIERS FACED BY WOMEN ENTREPRENEURS
The problems and constraints experienced by women entrepreneurs have resulted in restricting and
inhibited the expansion of women entrepreneurship. The major barriers encountered by women
entrepreneurs are:
LACK OF CONFIDENCE
As women are accepting a subordinate status, as a result they lack confidence of their own
capabilities. Even at home, family members do not have much faith in women possessing the abilities
of decision-making.
LACK OF WORKING CAPITAL
To be women and to do something on their own becomes quite difficult for them because of lack of
access to funds as women do not possess any tangible security and credit in the market. Before
marriage she has to depend on father and after marriage she has to follow the footsteps of the
husband. As such, women do not enjoy the right over the property of any form and they have limited
access over external sources of funds. Even getting loans from either a bank or financial institution
becomes exceedingly difficult.
SOCIO-CULTURAL BARRIERS
Woman has to perform multiple roles be it familial or social irrespective of her career as working
woman or an entrepreneur. In our society, more importance is being given to male child as compared
to female child. This mindset results in lack of schooling and necessary training for women. As a
result this impediments the progress of women and handicap them in the world of work.
However, the women of today will touch the magic of enlivening themselves and say, this far I
have traveled, there are distances to travel but there are moments here and now where I can be.
In this statement the past, present and future will emerge to create that space where movement and
stability, where noise and silence, where light and darkness, and chaos and tranquility loose their
absolutism to create a new rhythm and unfolding.It is in these new beginnings women will create a
legacy and a heritage and pass it on to their daughters and their daughters leave family saga of
creating an enterprise and make it grow into an industrial empire. An empire, which was built withdetermination, courage and resilience to rise again and again. A world created from nothing to an
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institution with values anchored in growth, excellence and human sensitivity of people. It is only then
the girl child of tomorrow will say that once upon a time there used to be my mother, or
grandmother or a great grandmother, who lived in a time and today I am proud to follow her
footsteps and add my landmark to her footsteps in the sands of time. Women need to ask themselves
whether they are aspiring for a job, a career, or a higher calling in life, since leaders are motivated
from the inside out. Their drive comes from within and is exhibited by their outward behavior.
Although a very few women may be privileged to achieve congruity between thecalling and their
career, since many economically deprived women are forced to earn their livelihood. Nonetheless,
the point is well taken, if one follows ones heart, if one is flying with a tail wind, propelled forward
by inner urge and passion. We believe that counseling / career planning opportunities if available to
young women at an early age could go along way towards incubating the leaders of tomorrow.
Women are experienced in managing one of the most complex organizations imaginable the
household, with its many human interfaces and interplay between the sexes, different age groups and
different stakeholders. Women have learnt over the centuries the art of negotiation and reconciliation
and qualities of patience and understanding, along with an inherent quality of emotional intelligence.
All these transferable skills can be brought to bear upon the workplace making it the richer, from
these valuable experiences.
Women are working in this multifaceted world. The organization scenario changes like akaleidoscope with every responsibility, accountability and multiple pulls and pushes, which women
have faced and came out with success.
In the new order, women will put down roots of a family and discover the freedom of sailing in the
open seas. The women will visualize a new horizon and identify directions and make tough decisions.
In the cacophony of sounds echoing of the past the women will cross the threshold to listen to their
own voices. The silence of centuries will find the first voice, which will beckon women to sail into
the unknown and unchartered land to lay the foundations of their growth to contribute to a
partnership.
ROLE OF WOMEN ENTREPRENEURS ASSOCIATIONS
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1. These are the following objectives of women entrepreneurs association:
2. To provide a meeting ground for women entrepreneurs.
3. To promote & develop feeling of unity & brotherhood among the entrepreneurs.
4. To develop self-confidence & hope among female entrepreneurs.
5. To present the problem of women entrepreneurs before the concerned authorities for
consideration and redressal.
6. To secure various concessions, subsidies, and assistance for women entrepreneurs.
7. To conduct entrepreneurial development programme for women.
8. To organize seminars and conferences on entrepreneurship with the help of other national and
international bodies.
9. To secure wider dispersal of entrepreneurship among women.
4.5 : TYPES OF WOMEN ENTREPRENEURS
ASSOCIATIONS
1. WOMEN ENTREPRENEURS WING OF NAYE
2. The national alliance of young entrepreneurs. It has a separate wing
for women entrepreneurs in India. It seeks to create unity among female
entrepreneurs& encourages them to participate actively in the countrys
industrialization. It urges the central and state government to provide special incentives
and facilities to women entrepreneurs such as liberal allocation land, sheds, etc.
3. INDIA COUNCIL OF WOMEN ENTREPRENEURS
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It is situated in New Delhi and is rendering valuable services for the promotion of women
entrepreneurship in the country.
4. FICCI LADIES ORGANIZATION
This is known as FEDERATION OF INDIAN CHAMBER OF COMMERCE AND
INDUSTRY. This organization inspires women, to take a active part in business and other
fields. It organizes meetings and discussions. It also recognizes women who have made a
mark in the field of industry.
5. NATIONAL COMMISSION ON SELF EMPLOYED WOMEN IN THE
INFORMAL SECTOR:
This commission expects the vast network of Mahila Mandals in India, to obtain raw
material, credit and market assistance for women entrepreneurs. It has suggested consumer
cooperatives, super market state emporia and government depots, as channels for marketing
produce of women entrepreneurs
6. WORLD ASSOCIATION OF WOMEN ENTREPRENEURS
This association organizes international conferences on women entrepreneurship sponsoredby NAYE at New Delhi in 1984. Its aim is to bring together all women who are qualified to
take up an active and leading part in employer organizations, along with their male
colleagues. It seeks to explore and advise on the means by which the rights and duties of
women in business and industry should be asserted and improved. The association has a
membership of more than 27,000 women entrepreneurs from all over the world.
7. There are also some state level associations of women entrepreneurs such as:
o Association of women entrepreneurs of Karnataka.
o Self-employed womens association of Ahmedabad.
4.6 : LEADING EXAMPLES OF WOMEN ENTREPRENEURS IN INDIA
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Ekta Kapoor-Creative Director-Balaji Telefilms.
Jyoti Naik-Chairperson, Lijjat Papad.
Lalita D Gupta-Managing Director, ICICI Bank.
Naina Lal Kidwai-Vice-Chairman-HSBC Securities.
Ranjana Kumar-Chairman-NABARD
Ritu Kumar-Fashion Designer.
Ritu Nanda-CEO-Escolife
Shahanaz Hussain-CEO- Shahanaz Herbis
Renuka Ramanath-CEO-ICICI Ventures.
Priya Paul-Chairman, Apeejay Park Hotels.
Rupa Mahanthy-Executive-Tata Steel.
Rekha Marsalamani-Executive-TELCO.
Sudha Murthy-Chairperson-Infosys Foundation.
Ravina Raj Kohli-Media Personality-Ex-President-STAR News.
Amrita Patel-Chairperson, NDDB-Gujrat.
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SOME INFLUENCIAL WOMEN IN
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4.7 : Factors Influencing Women Entrepreneurs
The following are the major factors influencing women entrepreneurs.:
There is Economic independence provided to women entrepreneurs.
Establishing their own creativity and their own identity in society.
Achievement of excellence.
Building confidence.
Developing risk-taking ability.
Motivation
Greater freedom and mobility and Equal status in society for the women in todays world.
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4.8: PROBLEMS AND PROSPECTS OF WOMEN
ENTREPRENEURSHIP IN INDIA
With the growth of industrialization, urbanization, education and democratic system in the country
after independence the tradition bound Indian society has undergone a sea change. One striking
evidence of this is that evidence of this is that women have started seeking not only the gainful
employment in several fields in increasing number but also started to take active interest in
entrepreneurial activities. The growth of entrepreneurial field is hunted by a number of difficulties,
sung and problems faced by women entrepreneurs.
In brief the women entrepreneurs are facing the following teething problems in India:
1. Stiff competition from male entrepreneurs
2. High prices of raw materials required
3. Financial and managerial constraints
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4. Technical difficulties
5. Low ability to bear economic, social, technical and environmental skills.
6. Discrimination in the selection for entrepreneurial development training.
7. Low level of favorable family back-ground in the field of family cooperation education,
occupational and entrepreneurial base.
8. Inferiority complex among the lower and middle class women community.
9. Family affairs, child and husband care.
10. Lack of specialized entrepreneurial training programmes best suited to the temperament of
women entrepreneurs.
11. Lack of specialized entrepreneurs.
12. Lack of infrastructural facilities in urban as well as rural areas.
13. Restrictive policy of state governments and other promotional agencies in granting loans,
incentives, concessions and subsidies specifically meant for women entrepreneurs, and;
14. Late commencement of women entrepreneurship in the country.
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4.9 : Challenges in the path of women Entrepreneurs
Lack of Confidence
Problems of Finance and Working Capital
Socio-cultural Barriers
Production Problems
Inefficient Marketing Arrangements
Indias first Prime Minister, Pandit Jawaharlal Nehru, said When
women move forward, the family moves,
the village moves and the nation moves.
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LIJJAT PAPAD
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5.1 : INTRODUCTION
Their valued Customers particularly from USA, U.K. & other countries are hereby cautioned that
fake LijjatPapadpacketsarebeingcirculatedintheMarket.
Genuine Lijjat Papad packets are being solely manufactured by its 62 authorized Branches all over
India which has Mumbai Head Office Address.
Fake Lijjat Papad have no Mumbai Head Office Address and that is sure proof of they are being fake.
Hence people are cautioned to ask for only genuine Lijjat Papad packets and check the original Lijjat
Trademark and photograph of a boy Babla - eating papad along with Bunny Rabbit with papad in
hand before buying to get value for your money.
5.2 : HISTORICAL BACKGROUND
Entrepreneurship is closely regarded and associated with economic history of India. Accordingly, the
evolution of entrepreneurship in India is traced way back to even as early as Rig-Veda, when menta
handicraft existed in the country. Over the years, entrepreneurship has passed through several
upheavals.
Entrepreneurship has been described in many ways. A Parisian banker, Richard Cantillon introduced
the term entrepreneur literally meaning undertake in the 18 th century. At the turn of the 19 th
century, the French economist, Jean Baptiste say argued that the entrepreneur shifts economic
resources out of an area of lower to higher productivity and yield. The Austrian economist, Joseph
Schumpeter introduced the innovation concept into entrepreneurship.
Women make half the human resource potential available for economic activity. The New Delhi
Declaration and Plan of the Action adopted in 1980 emphasized the necessity to enlarge and
strengthen long term programmes to co-ordinate existing national facilities available for training and
stressed importance of full involvement of population, especially of women and youth. It also
reaffirmed the needs on upgrading of skills and development of human resources with the attention to
integration of youth and women in the process of development. Women Entrepreneurship gained
much importance in India after the launching of International Womens Year in 1975.
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In 1959, Girgaum, Mumbai witnessed seven ladies of the residential tenements of Lohana Nivas
gathering on the terrace of the building for a function followed by rolling of 4 packets of pappads,
everyday. In 1966 when the chairman of the Khadi & Village Industries Commission (KVIC) Pujya
Uchhangrai N. Dhebar visited the institution and got it recognized by KVIC.
5.3 : CURRENT SCENARIO
Women Entrepreneurs in India represent a group of women who have broken away from the beaten
track and are exploring new vistas of economic participation. The governments draft of the national
perspective plan for Women, the period of 1988 to 2000 A.D. has mooted a wide range of proposals
including job reservations for women in anti-poverty programmes, wholesome projection of women
in media and provision of through going legal safeguards to women in various endeavours.
The government has 27 beneficiary oriented and 45 training programmes designed for women. At
present, there are 1084 industrial training institutes of which 126 are exclusively for women with
approximately 5600 seats for them.
Lijjat has become a house hold name due to its determination and marketing efforts of its sistermembers. The total number of sister-members involved in the institution is over 40,000. In Mumbai,
currently 8000 sister-members are self employed in Lijjat pappad.
OBJECTIVES OF THE STUDY
1. To study women entrepreneurs and their problems in India.
2. To study women entrepreneurs problems with special reference to Lijjat Pappad-Mumbai
3. To evaluate the problems faced by women in reaching the effective level.
4. To give suggestions for enhancing the problems of women entrepreneurs in India in general
and Lijjat papad in particular.
IMPORTANCE OF THE STUDY
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Entrepreneurs play an important role in the development of the society. The emergence of
entrepreneurs in a society depends to a great extent on the economic, social, cultural, and
psychological factors prevailing in the society. Women entrepreneurs have been making significantimpact in all the segments of the economy. The study will bring in light the effectiveness and the
problems faced by women entrepreneurs in Mumbai general and Lijjat pappad- Mumbai in the
development of women entrepreneurs.
RAPID PROGRESS
Shri Mahila Griha Udyog Lijjat Papad has made exemplary progress in the last 45 years of its
existence. The sales amounted to only Rs. 6,196/- in the first year i.e. 1959 have already touched the
level of Rs. 300 crores. The membership which was just 7 in the beginning is around 42,000.
The institution has started to extend its activities from 1968. At present, it has 62 branches and 40
divisions spread in different states of India. There are 16 branches in the city of Mumbai and its
suburbs. 11 are in the remaining parts of Maharashtra, namely Pune, Amravati, Warnanagar (Near
Kolapur) Islamapur, Latur, Nagpur, Ratnagiri, Panvel, Deori, Dhayari (Pune) and Rahuri.
Gujarat has got 11 branches Valod (Near Surat), Ramania (Kutch), Rajkot, Salaya, Savarkundala,
Golan, Gondal, Vaktana, Vadodara, Gandhidham, and Khedbramha. Remaining branches are: 4 at
Kolkata (W.Bengal), Hyderabad (A.P.) Gandhigram, Chennai (Tamil Nadu), Lucknow, Saharanapur
(U.P.), Ranchi (Jharkhand), Muzaffarpur (Bihar), Jodhpur (Rajasthan), Bangalore, Karwar
(Karnataka), Kochi (Kerela), Delhi I & II, Ludiana I & II (Punjab), Ambala & Karnal (Haryana),
Bhopal and Jabalpur (M.P.), Bhubaneswar (Orrisa) and Jammu (J&K).
The institution has by now grown into vast and prestigious organization. It has got its own fleet of
transport vehicles to help the smooth movement of the goods to the selling points and passenger
vehicles for convenience of its members. Many branches and centres have their own premises too.
All of them are well equipped with various facilities to carry out their day to day work.
1966: A TURNING POINT
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The institution started to regulate its activities from 1966. It was a turning point. One of the very
important events in the life of the institution was adoption of a formal Constitution by its members on
25th July 1966. The institution was then registered as a society under the provision of the Societies
Registration Act, 1860, as well as Public Trust under the provision of the Bombay Public Trusts
Act, 1950.
In the same year Shri U.N. Dhebar, the then chairman of Khadi & Village Industries Commission
visited the institution which was recognized by Khadi & Village Industries Commission during the
same year and that was the great boost the institution has ever received.
What really helped the institution was excellent quality of papads, which has remained uniform from
the very first day of its production. At no time the members have allowed it to deteriorate. The
principles, upon which the institution is based, have made Lijjat Papad a successful organisation.
5.4 : INSTITUTIONAL SET-UP
The institution has kept Sarvodaya Philosophy as its ideal. All sister members of the institution are its
owners. All the profit or loss, whatever it may be is shared or owned by the members jointly. Theyonly have the authority to decide the manner in which this profit or loss should be apportioned among
themselves.
There is a Managing Committee of 21 members to manage the affairs of the whole institution. There
are also Sanchalika (one or more) for each centre to look after all the daily affairs of the concerned
centre. But the work of the institution is that each and every member can take any initiative or any
decisions, whether major or minor, have to be based on the consensus among the members. Any
single members objection can nullify a decision.
Another important fact about the institution is that a male person cannot become its member and any
male employee whether working honorary or on salary basis has no right whatsoever over the
institution.
5.5 : THREE GOLDEN RULES
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Besides basic principles like self-reliance, co-ownership and faith in dignity of labour, the
institution has also formed three Golden Rules
1. All the rights of the institution must belong to members only,
2. There must be maintenance of Lijjat quality and cost and,
3. There must be clean and time bound accounting system.
All the Lijjat branches follow these three Golden Rules.
PHILOSPHY THAT GUIDES LIJJAT
Shri Mahila Griha Udyog Lijjat Papad is synthesis of three different concepts, namely:
The concept of Business.
The concept of Family.
The concept of Devotion.
All these concepts are completely and uniformly followed in this institution. As a result this
synthesis, a peculiar Lijjat way of thinking has developed therein.
The institution has adopted the concept of business from the very beginning. All its dealing is carried
out on sound and pragmatic commercial footing. It produces quality goods and sells them at
reasonable price.
Besides the concept of the business the institution has adopted the concept of mutual family affection
concern and trust which are the idee fixe of the members. All the affairs of the institution are
tackled on the very same pattern as a family carries out its own daily household chores.
But the most important concept adopted by the institution is the concept of devotion. For the
members as well as the employees and the well wishers, the institution is never merely a place to earn
ones livelihood. It is a temple, a church, a mosque, a gurudwara, a place of worship to devote ones
energy not for his or her own benefits but for the benefit of all. In this institution work is worship.
The institution is open for everybody who has faith in its basic concepts.
SECRET OF TOP QUALITY
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Many people wonder about ready consumer acceptance. Lijjat products are well received in
the market and the secret is its top quality. But the institution has simply no business secrets.
The whole manufacturing process of Lijjat Papad is even open for inspection by anybody.
Members have fixed standard of taste, colour and size of Lijjat Papad. A well laid down
formula is being strictly followed. Only the best quality ingredients and raw materials are
used. The members continue the check on quality at every stage. No sub-standard papad is
ever allowed to reach the consumers. It is the quality consciousness among the members that
has made Lijjat Papad a number one Papad in the Indian as well as overseas market.
DIVERSIFICATIONLijjat has now diversified its activities. It has a Flour division at Vashi (Navi Mumbai) and at Nasik
where flour is milled from Udad Dal and Moong Dal. There is Masasla Division at Cotton green
where different kinds of spice powders like Turmeric, Chillies, Coriander and ready Mix-Masasla
like Garam Masala, Tea Masala etc. are prepared and packed in consumer packs. There is also
Quality Control Laboratory at the same place and Lijjat Advertising Services at Bandra (Mumbai)
The Institution is having Khakhra Division at Buhari (Dist-Surat) [Gujarat]. The other divisions are
Export at Wadala, Polypropylene at KashiMira Road, Vadi at Valod, Bakery Division at Valod,
Vadodara and Rajkot, Printing Division at Cotton green Gehu Atta Division at Cotton green.
Lijjat has also entered into the field of manufacturing Detergent Powder and Cakes, to start with, at
Dahisar and office at Borivali in Mumbai. Later extended to Sanaswadi (Pune), Haripar Pal (Rajkot),
Hyderabad (A.P).
In the year 1999 Mumbai Unit of Lijjat has started production of Chapaties at Borivali, Wadala,
Mulund, Bhandup, and Kandivali.
5.6 : BASIC PHILOSOPHY
Organization rests on six philosophical concepts:
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Lijjat is an organization of sisters who work voluntarily.
This organization is neither for poor sisters nor for rich ones. Poor sisters should remove the
thoughts of poverty from their mind and the rich sister should remove their affluence.
The organization does not and will never accept charity.
Sisters will run their business wisely.
Sisters will develop cordial relations through tolerance and mutual understanding and live in
the institution as member of one family.
This is a gift of their basic philosophy and there would never be a compromise or change in it.
As in the temple of Ram nobody places an idol of Shankar or as in a Mosque nobody places a
photo or an idol, so is the case with their basic philosophy. Any one who does not agree with
it is free to leave it voluntarily to work from some other organization of her or his liking. But
no one is allowed to change the basic philosophy and the way of functioning of the
organization.
No one is required to be told that while entering temple foot-wears should be left outside.
Without being told by anybody, the sisters leave foot-wears outside. This means when they
enter temple, they do not carry dirt and dust inside.
5.7 : ORGANIZATION STRUCTURE
Six-Office - Bearers
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1. Smt. Jyoti J. Naik - President
2. Smt. Pratibha E. Sawant - Vice-President
3. Smt. Sunanda R. Belnekar - Secretary
4. Smt. Gangavati H. Naik - Secretary
5. Smt. Priyanka G. Redkar - Treasurer
6. Smt. Kshama M. Sutar Treasurer
BEWARE OF FAKE LIJJAT PAPAD
Their valued Customers particularly from USA, U.K. & other countries are hereby cautioned that
fake Lijjat Papad packets are being circulated in the Market. Genuine Lijjat Papad packets are being
solely manufactured by its 62 authorized Branches all over India which has Mumbai Head Office
Address. Fake Lijjat Papad have no Mumbai Head Office Address and that is sure proof of they are
being fake.Hence people are cautioned to ask for only genuine Lijjat Papad packets and check the
original Lijjat Trademark and photograph of a boy Babla - eating papad alongwith Bunny Rabbit
with papad in hand before buying to get value for your money.
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TV COMMERCIAL OF LIJJAT PAPAD
5.8 : FIVE P`s OF MARKETING:
PRODUCT
Lijjats manufacture several products, of which papad is the most famous:
Papad (five: flavours: lasan, moong, mirch, Punjabi and urad)
Khakhra
Appalam
Masala
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Vadi
Gehu aata
Bakery products
Chapatti
Sasa detergent powder
Sasa detergent cake (tikia)
Sasa nilam detergent powder
Sasa liquid detergent
List of product available:
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Market Positioning
As abusiness enterprise, the declining sales figure for three consecutive years Rs 298 crore (1999-
2000), Rs 288 crore (2000-2001) and Rs 281 crore (2001-2002) is a matter of concern for Lijjat
management. Some of its home turf in Maharashtra and Gujarat has been captured by a growing
competitive local market. But Lijjat has also expanded to the North Delhi, Punjab, and Himachal
Pradesh and, with the latest branch in Jammu, to the Kashmir market as well.
Though each branch is responsible for the marketing of its products in the areas allotted to it, the new
centralised marketing offices now procure surplus production from different branches and market it
at an all-India level. This coupled with a healthy upward trend in the export of Lijjat papad positions
Lijjat as the strongest brand in the papad industry. The other big brands in the papad market are
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Bikaner, MDH and Saktibhog, but none seem to be able to make any dent in Lijjats share of the
industry as their core business is not papad.
Lijjat markets its products through a wide network of dealers and distributors all across the country,
and has never chosen to sell or push its products directly through the vast network of its offices and
sister-members even during the initial years. Rather, over the years, Lijjat has developed cordial and
mutually beneficial relationships with its dealers. Sisters (employees) claim they believe in doing the
business wisely and on sound business ethics. Dealers are given a set commission of seven per cent
and retailers earnings are fixed between Rs 25 and Rs 26 on the investment of Rs 14 for 200 grams
and Rs 150 for 2.5 kilogram packs respectively.
Pricing
Shri Mahila Griha Udyog Lijjat Papad adopts a Cost plus Pricing Strategy for all their
products. The Lijjat products are targeted at the middle and lower segments of society. These
segments are highly price sensitive and hence this method of pricing allows them to market
their products extensively.
While calculating the price the following expenses are taken into consideration:
Cost of Raw material
Rolling Charges
Packaging Costs
Transport
Selling Expenses
Administrative expenses
A certain markup is then added to these costs to account for the profits.
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Manufacturing Process
Sale of Papad amounts to about 45% of total sales. Hence, we have studied the production process ofPapads. The manufacturing process for making papad starts at 5:00 a.m. everyday. All the sisters or
bhaginis are fetched from their homes at brought to their respective production centers in
institutional vehicles. These sisters who arrive at 5:00 a.m. are responsible for kneeding the papad
dough. After 7:00 a.m. the rest of the sisters come in and dough is distributed to each one of
them in dabbas.
These sisters take the flour to their respective houses, roll out papads and place them in the sun for
drying. It is extremely essential that the papad once rolled gets a sufficient number of hours per day
to dry in the sun and that is the reason that the entire process is initiated at 5:00 a.m. Every morning
when the sisters come to work, they bring with them the rolled out papad of the previous day. Only
on giving this in do they receive dough for the next day. From every 1000 Gms of the dough, the
weight of the final papad will amount to only 800 Gms.
From every 1000 Gms of dough, 120 small papads of 5 inches each and 65 papads of 7 inches each
can be rolled out.For 1 kilogram of papad rolled out,a sister earns a pay of Rs 16/-. For any faulty
papad rolled out ,a penalty is charge to the sister amounting to a few paise.Most of the centers carry up to 15 days inventory. The sanchalika of each center ensures that there
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is no wastage or pilferage by counting the papads that is bought in each day. From 8:00 to 9:00 a.m.,
the packing process takes place. The packing bags are manufactured by Lijjat itself, so as to maintain
high standards and quality.
This is also done to prevent duplication of their product, which could occur if this process was
outsourced. Quality of the product is of utmost importance. If a slight defect is identified in a days
production, then the entire production will be destroyed. To maintain standard and assured quality,
the purchase of raw materials is carried out by a central authority. The main raw material, Udad dal,
is bought and processed in Nashik and Vashi. This is then transported to the Mumbai Head Quarters
and then channelised to various centers across the country as per their requirements.
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Promotions
At Shri Mahila Griha Udyog Lijjat Papad, they believe that the best promotion they could possibly
receive is by word of mouth. Therefore they concentrate more on cost effectiveness and quality rather
than on more expensive modes of promotion like advertisements.
Therefore their annual expense on advertisements and promotions amounts to Rs. 60 Lakhs, a mere
0.2% of total turnover. The extremely famous Bunny rabbit campaign continues to be aired on
specific regional channels.
For e.g. Alpha Gujarati, Alpha Bengali, Sun etc. They also advertise in English and regional
newspapers. The distributors also need to be motivated properly, so that they in turn make a greater
effort to sell large volumes of the products to the retailers. Targets are set quarterly for the
distributors. Should they exceed this target; the distributor will receive a further 1% discount.
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5.9:Distribution
In Mumbai, Shri Mahila Griha Udyog Lijjat Papad has 18 branches. The daily production is
collected at the 6 depots. From here the various products are distributed to the authorizedDistributors who in turn deliver it to the retail outlets all over the city, such that every resident
of Mumbai is a hop, skip and jump away from the nearest shop
Apart from production, the branch is also responsible for marketing its products in the area allotted to
it. The wide network of dealers and the goodwill that Lijjat products enjoy with customers make the
marketing relatively easy. To maintain the high quality and standard of Lijjat products and uniformity
in taste for the same product from different branches, the central office supplies the raw material
mung and urad flour -- to all its branches. This remains the only involvement of the central office in
the entire production and marketing exercise of the branch office.
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The distributors pick up the quantity of papad they require and pay cash on delivery because Lijjat
pays their bens (members are called bens, or sisters) every day.
Since they have an estimate of the quantity each distributor takes, they produce accordingly. This
ensures that they neither stock inventory nor pay heavily for storage.
They have about 32 distributors in Mumbai. Each distributor picks up an average of 100 boxes per
day from the depot. This is where their job ends. They are not involved in how and where a
distributor delivers as long as he stays within the area they 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, they first give an advertisement in newspapers for the areas they
have marked. Members from their marketing division personally go and check the godown facilities
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and only on their approval do they appoint distributors. A distributor pays us Rs150000 as deposit.
They make it clear to them that they must pay on delivery if they want their distributorship.
This system is followed all over India and it works well for them.
When they discover that there is demand in a particular place, they open a new branch, like they
recently opened one in Jammu and Kashmir. Whether or not they have a centre in an area, their
goods reach there. For example, they do not have any centre in Goa, but they have appointed a
distributor for that area to ensure that Lijjat papads reach Goa. Their communication with distributors
is regular through monthly meetings where they discuss their problems and also the issues that they
may have about quality, price, reach, etc. Lijjats Ranchi branch was established in November 1997
bifurcating it from the only branch in Bihar at Muzaffarpur. It pays Rs 11,000 per month as rent for
the building that houses its office and workshop. A trekker (thirteen-seater passenger vehicle) has
also been purchased for the conveyance of sister-members from home to the Lijjat office and back.
This branch has 165 sister-members and sold papad worth Rs 0.65 million in November 2002. Vanai
charge is Rs 14 per kilogram of papad and each sister was paid Rs 250 as extra vanai charge on
Dipawali. The Muzaffarpur branch, according to Lijjat sources, paid Rs 2,500 as extra vanai charge
to its sister-members. Similarly, the Mumbai and Thane branch distributed gold coins of five grams
to each of the 4,056 sister-members a couple of months ago. The branch averages around four rupees
as gross profit and one rupee as net profit from per kilogram of papad. As an experiment, Lijjat hasinsulated its sister-members from joblessness. These women also work from their homes, where help
from other family members not only adds up to the income but also makes the work more enjoyable.
At the workplace they are self-respecting, hard-working and sisterly to one another. More
importantly, besides the strength of womanhood, Lijjat is also an experiment in the restoration of the
essence of womanhood. The Lijjat women offer an alternative to the highly competitive and stressful
work environment defined and dominated by men in which a woman competes with a man more as a
man than a woman, says an elderly Gandhian, TK Sumaiya, of Bombay Sarvodaya Mandal. They do
not have individual door-to-door salesmen or women selling from homes -- only the appointed
distributor for the area. The same system is followed for other products, but they may have different
distributors and depots for different products. Shri Mahila Griha Udyog Lijjat Papad has a policy of
not allowing any sales to be made on credit terms. All sales are made on cash-at-delivery or advance
payment basis. A close check is kept on the distributors to make sure that the products reach every
nook and corner of the cities. They make sure that every retailer, no matter what size, stocks their
brand of products if they are stocking any other brands of the same product.
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5.10 : ITS WORKING PATTERN
After a woman has signed the pledge form, which serves as her formal entry and introduction to the
formal working environment, she is considered as a sister-member. The branch office normally
operates from 6.00 to 10.30 am during which time some sisters prepare the dough, while others
receive ready papads from those who had taken the dough home the previous day. Payment, called
vanai charge, is made straight away, before fresh dough is given for the days work. Accounts are
never kept pending even for a day nor is any credit given to a dealer no matter how big or important
he is. Success in their hands: Lijjat has fired the imagination of women and rural folk
Every branch is headed by a sanchalika (branch head) who is chosen from among the sister-members
by consensus. Similarly, allotment of different works like dough-making, distribution of dough,weighing and collection of papad, packaging, etc. are all decided by the sister-members by
consensus. The wage pattern is such that the same amount of work fetches almost the same wages. In
any case, it is the collective responsibility of the sister-members to manage all branch activities
efficiently and profitably. Apart from production, the branch is also responsible for marketing its
products in the area allotted to it. The wide network of dealers and the goodwill that Lijjat products
enjoy with customers make the marketing relatively easy. To maintain the high quality and standard
of Lijjat products and uniformity in taste for the same product from different branches, the central
office supplies the raw material mung and urad flourto all its branches. This remains the only
involvement of the central office in the entire production and marketing exercise of the branch office.
Vanai charges (rolling) differ from branch to branch, between Rs 14 and Rs 18 per kilogram
depending on the profit of the branch. Each sister-member is expected, as also bound by the pledge,
to roll out at least three kilograms of papad everyday. A new member, after about 15 days of on-the-
job training, starts achieving this target in about five to six hours and goes on to roll out one
kilogram per hour after some months. Helping hands at home shoot up production and accompanying
monetary returns. If there is any loss, sister-members, as the owners of Lijjat enterprise, absorb this
by taking less vanai charges. Similarly, profits are distributed among the sister-members as extra
vanai charges at the discretion of the branch concerned.
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5.11 : Sources Of Capital
Shri Mahila Griha Udyog Lijjat Papad secures its funding only through Banks. Their main bank is
Bank of India, followed by Bank of Baroda and Dena Bank.
The bank interest charges are generally at 16%. Lijjat pays the interest to bank at this rate. Since
Lijjat is registered under the KVIC Act, they receive a subsidy on this interest paid. Therefore at the
end of the year, after procuring the necessary certificates from KVIC, 12% of the interest paid is
reimbursed to Lijjat.
Thus, in actuality Lijjat pays interest at the rate of 4%.
Working Capital Management and Tax Benefits
The working capital for PCPI (Processed Cereals and Pulses Industries) amounts to Rs. 790 Lakhs.
While that of Detergent amounts to Rs. 80 lakhs.
As per the notification issued by the State of Maharastra sale of Papad by Shri Mahila Griha Udyog
Lijjat Papad is exempt from the levy of sales tax for the period upto 31st March, 2002.
Shri Mahila Griha Udyog Lijjat Papad was granted exemption from the State of Maharashtra from
the sales tax on sale of detergent products up to the financial year 1994-95. Shri Mahila Griha Udyog
Lijjat Papad has made an application for getting appropriate exemptions under Sales Tax Act under
the subsequent years. Furthermore, based upon a decision in the similar case, Shri Mahila Griha
Udyog Lijjat Papad is contending that, it being a charitable Institution, is not a Dealer within the
meaning of Sales Tax Act and not liable to be assessed under the Bombay `Sales TaxAct`.
Recently the Government has passed a new provision, which does not include detergent in the PCPI
list of products. Therefore, Shri Mahila Griha Udyog Lijjat Papad is liable to pay the Sales Tax for
their Sasa Detergent Powder. Negotiation is currently being carried out with the government to
exempt this product from Sales Tax as well.
Exports
Their exports alone account for Rs 10 crore (Rs 100 million). Shri Mahila