Women and Entrepreneurship

SUCCESSFUL WOMEN ENTREPRENEURS  contd...

Shri Mahila Griha Udyog Lijjat Papad (SMGULP)

The entrepreneurial success of SMGULP^[23] is noteworthy. SMGULP was a cooperative system in which women over the age of 18 could become members. Starting humbly, with an initial capital of Rs 80, borrowed from a local money lender and social worker, SMGULP grew phenomenally. In 2002, it had a turnover of Rs 3 billion and exports worth Rs.100 million. It employed 42,000 people in 62 divisions all over the country.

In March 1959, this group of women borrowed Rs 80 from Chaganlal Karamsi Parekh, a member of the Servants of India Society and a social worker. With this capital, they started making papads and selling them to a merchant known to them. Gradually the business grew and its membership increased. Within three months there were about 25 women making papads. Soon the women bought some equipment for the business, like utensils, cupboards, stoves, etc. During the first year, the women had to stop production during the rainy season as the rains would prevent the drying of the papads. The next year, they solved the problem by buying a cot and a stove. The papads were kept on the cot and the stove below the cot so that the process of drying could take place in spite of the rains. By the end of the first six months, they were able to reward themselves with half a gram of gold each from the profit they had made.

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 more than 300 women were rolling papads. In 1962, the name Lijjat was chosen by the group for its products. The organization was named Shri Mahila Griha Udyog Lijjat Papad. By 1962-63, its annual sales of papads touched Rs.0.18 million. In July 1966, SMGULP was registered as a society under the Societies Registration Act 1860.

In September 1966, it was formally recognized 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” by the Khadi and Village Industries Commission (KVIC).^[24] In 1966, SMGULP was granted a working capital of Rs. 0.8 million by KVIC and was allowed certain tax exemptions. It was also registered under the Bombay Public Trusts Act, 1950, as a Public Trust. In 1966, SMGULP evolved into a formal organization and the member sisters adopted the first written constitution. The logo chosen read, “Symbol of Women's Strength”. Only women could become members; men could not become members of the organization and did not have any ownership rights. Men working in SMGULP provided only functional support.

 

^[23] Mahila in Hindi means women, Griha means home, Udyog means industry or work, and Lijjat means tasty. Papad is a flat, thin,dried roll of kneaded flour mixed with spicy ingredients. Papad has a
reasonably long shelf life, can be toasted or fried in oil and served as a snack or taken along with food.

^[24] The KVIC is a statutory body set up by the Government of India in 1957. It is involved in the development of Khadi (handloom cloth) and other village industries as part of rural development.

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