How 7 Mumbai-based women Entrepreneurs made a 1600 Cr empire from 80Rs | Lijjat Papad Case Study

Summary

This video tells the inspiring story of seven women in 1959 India who, with just 80 rupees, founded Shri Mahila Griha Udyog Lijjat Papad, a papad-making business that has grown into a 1600-crore empire with 69 branches and over 42,000 employees. The company's success lies in its unique business model, which emphasizes collective ownership, empowering women, and a steadfast commitment to its mission of 'Sarvodaya'—progress for all. Despite rapid growth and technological advancements, Lijjat Papad remains true to its core values, ensuring no woman is left behind and even using profits to sponsor education for the children of its workers.

Takeaways

• 🌟 The story of Lijjat Papad is about seven women with no business background or significant education who started a business with just ₹80 and grew it into a ₹1600 crore empire.
• 🏢 Lijjat Papad has similarities with global giants like Starbucks and Apple in terms of business philosophies, particularly in its approach to employee ownership and empowerment.
• 💡 The company was founded in 1959 in Mumbai, India, during a time when literacy rates for women were extremely low, and women were not encouraged to work outside the home.
• 👩‍💼 Lijjat Papad's business model was designed to allow women to work from home, providing an income opportunity that was rare at the time.
• 🤝 The company's initial goal was not profit maximization but to empower women and provide them with the means to support their families.
• 💼 Lijjat Papad adopted a collective ownership model, referring to its workers as 'Lijjat Sisters' and giving them a share in the company's profits and losses.
• 🔗 The concept of collective ownership is a principle that Starbucks also practices, offering stock options to employees and fostering a sense of ownership and commitment.
• 🏠 Lijjat Papad's supply chain was built to be cost-effective and flexible, using the homes of the 'sisters' as production centers for making papads.
• 📈 The company's success is attributed to its adherence to a clear mission and vision, which has remained consistent over 62 years, similar to Apple's turnaround under Steve Jobs' leadership.
• 🌐 Despite significant growth, Lijjat Papad has stayed true to its core values, ensuring that technological advancements and expansion do not compromise its commitment to empowering women.

Q & A

What was the initial capital that the 7 women had to start Lijjat Papad?

The 7 women had an initial capital of just ₹80 to start Lijjat Papad.

How did Lijjat Papad manage to build a business empire with such a small capital?

Lijjat Papad built a business empire by focusing on quality products, hiring women at a low cost to work from home, and implementing a collective ownership model where every woman who joined was given a part of the company.

What is the significance of the term 'Lijjat Sisters' used in the company?

The term 'Lijjat Sisters' signifies the collective ownership model where every woman who joined the business was considered an owner, not just an employee, and was referred to as a sister rather than an employee.

How does Lijjat Papad's business philosophy resemble that of Starbucks?

Both Lijjat Papad and Starbucks practice a form of collective ownership where every member, regardless of their position, feels a sense of ownership and is motivated to contribute to the growth of the organization.

What was the primary goal established by Lijjat Papad during their first board meeting?

The primary goal established by Lijjat Papad during their first board meeting was not to make money but to empower women from the smallest households of the country and provide them with the means to support their families.

How did Lijjat Papad ensure quality and hygiene in their supply chain?

Lijjat Papad ensured quality and hygiene by conducting surprise visits by supervisors to check the quality of oil used, hygiene of the house, and the process of making papads. They also provided aluminum papad makers for standardized production.

What is the core philosophy of Lijjat Papad's business?

The core philosophy of Lijjat Papad's business is 'Sarvodaya,' which means progress for all, emphasizing the empowerment of women and the betterment of their families' quality of life.

How does Lijjat Papad's approach to automation and expansion differ from typical corporate practices?

Lijjat Papad ensures that with every new machinery brought in for automation, no woman is asked to leave the organization, ensuring job security and aligning with their mission of empowering women.

What is the role of profits in Lijjat Papad's business model?

In Lijjat Papad's business model, profits are used to sponsor the education of the children of their frontline workers, ensuring the next generation receives opportunities they deserve, rather than being the sole purpose of the business.

How has Lijjat Papad managed to stay true to its core values over the years?

Lijjat Papad has managed to stay true to its core values by adhering to its mission and vision statements, which emphasize the empowerment of women and progress for all, and by ensuring that every decision aligns with these principles.

What is the significance of the 'Think Different' campaign in relation to Apple's mission and vision?

The 'Think Different' campaign was a pivotal moment for Apple, re-establishing its mission and vision after a period of deviation, which led to a resurgence and the creation of revolutionary products that changed the world.