Lijjat Papad - Woman & Entrepreneurship

            
 
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Case Details:

Case Code : LDEN008
Case Length : 13 Pages
Period : 1977-2001
Pub Date : 2003
Teaching Note :Not Available
Organization : Mahila Griha Udyog, Balaji Telefilms, Biocon Group
Industry : Varied
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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An Entrepreneurial Success Story Contd...

Over the years, SMGULP has won several awards. The organization was awarded for its outstanding contribution to the uplift and welfare of socially, economically and physically handicapped women. In 2002, The Economic Times Award for Women Entrepreneur of the year was awarded to Jyoti Naik, President, SMGULP.

Background Note

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.

Leadership and Entrepreneurship Case Studies | Case Study in Management, Operations, Strategies, Leadership and Entrepreneurship, Case Studies

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.

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