Lijjat Papad: The Brand that Empowered Women in India

Introduction

Many cooperatives and organizations are today becoming brands that can compete with well-established businesses. The co-operative or small initiatives are gaining such power at the national level because of their dedication, the quality of their products, and their willingness to make a difference. Companies with strong and good motives are the only ones that survive the test of time.

Lijjat Papad is one such initiative in India that is not only famous in India today, but is also acclaimed internationally.

In this article, we will dive into the Birth and Growth Trajectory of Lijjat Papad to understand the difference that women’s cooperative societies can make in the business world. This will also help us understand how age-old business models can surrender to new and better ideas.

The Birth of Lijjat Papad Brand

Shri Mhaila Girha Udyog Lijjat Papad, popularly known as Lijjat Papad, was started in 1959 in Mumbai, India. Shri Mhaila Girha Udyog Lijjat Papad is registered under the Khadi and Village Industries Commission (KVIC). Lijjat Papad started when seven women met on the terrace and decided to make papads every day.

Image 1 − Lijjat Papad - Papad produced and marketed by Lijjat, an Indian women's cooperative involved in manufacturing of various food items.

Lijjat Papad had the blessings of Pujya Channganlal and was later recognized by KVIC in 1966. Lijjat Papad started with a capital of 80 rupees and has now transformed into a business whose annual turnover is more than 3.15 billion rupees. Lijjat Papad has more than 69 centers all over India and 31 divisions. Lijjat Papad also produces other village essentials. Lijjat Papad is an initiative by the Women, for the women, and of the women.

The major competitors of Lijjat Papad are Haldiram, Bhikaram Chandmal, MDH, Bikaneri, Sethia Ji, and others.

Lijjat Papad made it a point to never take charities or donations from any members because, for them, it is a way they can empower women, and strictly business is done here.

The three golden rules for the work of Lijjat Papad are −

• All the goods must be Lijjat quality at any cost.

• All the rights of the institutions belong to their members only.

• There must be a clean and time-bound counting system.

Working and Marketing Model of Lijjat Papad

Employees of Lijjat Papad

Lijjat Papad has a rule that no male employee can join the organization. All the members of Lijjat Papad are women, and women can only run the organization. There is no differentiation in terms of caste, creed, religion, or economic status for any woman when she joins Lijjat Papad. There is a head committee, and then there are working employees. Lijjat Papad today has more than 42,000 employees working.

Business Model of Lijjat Papad

Lijjat Papad started with the manufacturing of only Papad, but today has expanded its reach across other domains such as cake and bakery products, wheat flour, khakhra, masala, chapatis, and so on. Lijjat Papad is a for-profit form of business.

Lijjat Papad also has the rule that any center’s profit or loss is to be divided among the sister members of that organization. In this way, though the centers are un-tied in the name of Lijjat Papad and also in the working model, every unit is financially independent. Every employee at the time of onboarding is introduced to the three golden rules of business and another mandatory value of Lijjat Papad, which are non-negotiable. Lijjat Papad today exports goods worth more than 12 crores to countries like the US, UK, Singapore, Hong Kong, and others.

Working Model of Lijjat Papad

Lijjat Papad ensures that there is no overstocking or understocking of goods. Goods are manufactured as per order. When they receive the order from the distributor, they start preparing the order. All the members of the organization are involved in indifferent activities like rolling, mixing the dough, mixing, and others.

Image 2 − Distribution flowchart of Shri Mahila Griha Udyog Lijjat Papad

Every product from Lijjat Papad goes through a heavy quality check, and if one of them is found defective, then the whole batch is disposed of in the sea because for them quality is of utmost importance. When a distributor takes an order from the unit, they have to immediately pay in cash. Small losses regarding the quality of the product are borne by the one who made the mistake, and big losses are borne by the entire branch.

Pricing of Lijjat Papad

Lijjat Papad uses a cost-plus pricing method. The acts of production are calculated and a % is attached as profit on them to calculate the selling price of the product. The profits from every batch are being divided among the sisters in equal measures.

Advertising Initiatives by Lijjat Papad

Lijjat Papad understood that for all they are doing for women’s empowerment, the word needs to get out. In many surveys, it has been found that customers are willing to pay extra for the same good if it has a cause associated with it. Lijjat Papad did the same thing. In all its advertisements, it showcased its working model, its initiative for women's empowerment, and the stringent product norms that they follow for manufacturing the product. The advertisements created a lot of brand awareness and brought in orders for Lijjat Papad.

Cause Marketing by Lijjat Papad

Lijjat Papad believes in helping the less fortunate or someone in adversity. Lijjat Papad has made significant contributions to the pandemic, earthquake disasters, and other adversities. Lijjat Papad donated around 4.8 million in 2001 during the January Gujarat earthquake.

Conclusion

Many experts from different nations have visited India and understood the working model of Lijjat Papad to open the same initiatives in their countries. Lijjat Papad as a brand is a laurel for India because not only does it help in women’s empowerment, but the only business motto of Lijjat Papad is what attracts investors. Lijjat Papad today helps thousands of women by providing them with a decent and respectable livelihood at their convenience and a chance to earn some extra money. There is no form of discrimination and the only goal is to provide customers with products of utmost quality. Lijjat Papad is a brand of the future in India.