Lijjat Papad - India's biggest and earliest COMMUNITY STARTUP

 

It all began on March 15, 1959, when seven female residents - Jaswantiben Popat, Parvatiben Thodani, Ujamben Kundalia, Banuben Tanna, Laguben Gokani, Jayaben Vithalani, and Diwaliben Lukka, of an old residential building in Girgaum, a bustling slice of South Bombay, taking a quick break from their domestic chores, gathered on their building's terrace to discuss a business idea. 

Armed with a modest loan of ₹80 from a kind social worker, Chhaganlal Parekh, the seven women embarked on a mission to create something of their own. And create they did - four packets of papads. Yes, our beloved crunchy household snack. 

Little did they know that from this humble beginning would emerge an iconic brand, a household name now synonymous with taste, trust, and the strength of the female entrepreneurial spirit, valued at a whopping ₹1600 crore, Lijjat Papad!


 

Humble Beginnings:

In its first year, the business made annual sales of a little over ₹6,000. The early days were not easy as the group followed the principle of self-reliance - no monetary help was to be sought, not even voluntarily offered donations. However, as the initial production of the four packets of papads sold out, word of mouth began to work its magic - women from nearby areas started joining the venture as a means to ease the financial tensions in their respective families. 

Within the first three months, the group membership grew from the initial 7 to 25 women, further increasing to 150 women in its second year, and to more than 300 in the third year.

 

In 1962, with annual sales of the papads touching ₹182,000, the organisation held a contest with prize money of ₹5 to finalise a name for the group.

The name, suggested by Dhirajben Ruparel, Shri Mahila Griha Udyog Lijjat Papad, later shortened to Lijjat (Gujarati for Tasty) won.

More than a Business: 

When the group had their first board meeting, they established the fact that the primary goal of their business wouldn’t be to make money but to empower women by providing them with the livelihood to nurture themselves and their families. 

Whether it is the enterprise’s business model, recruitment process, or productions, the enterprise follows a deeply woman-centric approach.

In her interviews with SheThePeople and Wilderness Films India, Jaswantiben said that she wishes to treat every woman as a maalik (owner) and that “everyone here is a partner and does not work for any other person”. To keep the vision alive, the group opted for a Collective Ownership business model, wherein, instead of hiring women, they give out ownership to every single woman who joins the business, calling them Lijjat Behens (sisters) rather than employees. Even today, the profits are shared equally among each employee, whether old or new. The profits are usually distributed in the form of 5 or 10 grams of gold coins.

Even in their recruitment process, there are no prerequisites, giving every woman an equal opportunity to work, so long as they abide by the quality regulations. To avoid the risk of unemployment, the company, to date, does not use any automated machines and rolls the papads using hands, despite making over 4.5 billion papads each year. 

Every member who joins pledges to, “make an all-round effort to ensure that the behens get the real fruit of their labour and we will not allow any economic loss to the institution knowingly or unknowingly, directly or indirectly. We are aware that it is one of the most important traditions of our institution that no one wrongfully takes away any money or material from the institution. Those who take away money or materials wrongfully from the institution are either beggars receiving alms from the behens or thugs and robbers extricating bread from a sister’s mouth.”

Aiming to make the lives of all Lijjat sisters easier, every day,  Lijjat Papad Company buses ferry women to and from the Lijjat branch centre where they deposit the Papad made by them, get their daily wages, collect the kneaded dough to make more papads, and are dropped back home by the same bus.

The institution has also taken various initiatives to encourage its member sisters and their families to pursue education by providing resources and even setting up literacy programs.

At the heart of the entire business is its people.

 

A Growth Journey:

In July 1966, Lijjat enlisted itself as a society under the Societies Registration Act of 1860. In September of the same year, the chairman of the Khadi Development and Village Industries Commission (KVIC) formally recognised Lijjat as a division belonging to the "processing of cereals and pulses industry group" under the Khadi and Village Industries Act, granting it a working capital of Rs. 800,000 and certain tax exemptions.

Until 1968, Lijjat Papad was only established in Maharashtra. After two failed attempts to branch out to other states, it finally set up its first successful branch in Valod, Gujarat, in 1968. After tasting success with their papads, Lijjat also began the production of other products like Khakhra, Masalas, Vadis, Wheat Atta, and many other successful/unsuccessful products. 

In the 1980s, Lijjat started featuring in the vernacular newspapers, television and radio. It also showcased its presence in various trade fairs and exhibitions, improving its sales and making “Lijjat" a household name in India. 

1980-1990 also saw the rise of Lijjat’s exports to countries like the United States, Singapore, United Kingdom, Thailand, Netherlands, and more.


In 2002, "The Women Behind Lijjat Papad" got the "Businesswoman of the Year" award at The Economic Times Awards for Corporate Excellence. In 2003, Lijjat received the "Best Village Industry Institution", followed by the PHDCCI Brand Equity Award 2005.



Even during the Coronavirus, when the sales slashed to more than half, the institution stuck to its values, ensuring that no lay-offs happened and all the Lijjat sisters continued to earn their livelihood.





In 2021, Lijjat Papad saw a new high when the enterprise’s 90-year-old co-founder, Jaswantiben Jamnadas Popat, was felicitated with the prestigious Padma Shri award, one of India’s highest civilian orders, by President Ram Nath Kovind. In her acceptance speech, she dedicated the award to all the Lijjat Behens (sisters) saying that “this recognition is the fruit of their hard work.”


A Success Story Like None Other:

In spirit, Lijjat almost considers itself to be a mini-India - in its democratic set-up, having members from every community, religion, and language, and its shared dream for a better tomorrow.



From a few hundred to thousands of women, Lijjat Papad is now an enterprise of 82 branches, empowering 45,000+ women, and valued at ₹1600 crores. 

Lijjat’s success story is even all set to make its leap to the silver screen with a Bollywood film called “Karram Kurram”, named after the brand’s iconic 1990s jingle, featuring their one-time mascot, a pink puppet bunny. "People will be able to learn something from it, and hopefully we will be able to cast a wider net in the future," says Paradkar, President and a second-generation co-owner who started rolling papads with her mother at a young age after losing her father at the age of 10.


In a world filled with unpredictability, Lijjat Papad is a salute to the vision, hard work, and unwavering commitment, which has the potential to bring about real change. 

Previous
Previous

India's Ascent in the Web3 Revolution

Next
Next

The Dawn of Drones: Surging Growth of Drone Industry in India