Professional Documents
Culture Documents
2009
1 Executive Summary
13
D’Essence Consulting Case Study:
chandni@dessenceconsulting.com
022-28347425 1. Amul
303, Aar Pee Center, 11th Road,
2. Lijjat Pappad
MIDC, Andheri (E), Mumbai-400093
EXECUTIVE SUMMARY
Food processing involves any type of value addition to agricultural or horticultural produce and
also includes processes such as grading, sorting, and packaging which enhance shelf life of food
products. The food processing industry provides vital linkages and synergies between industry
and agriculture.
The Food Processing Industry sector in India is one of the largest in terms of production,
consumption, export and growth prospects. The government has accorded it a high priority, with
a number of fiscal reliefs and incentives, to encourage commercialization and value addition to
agricultural produce, for minimizing pre/post harvest wastage, generating employment and
export growth.
The idea of India is gradually changing as number of countries showing interest to invest in
India is increasing. In fact it is observed that India has displaced the US as the second most
favoured destination in the world for FDI after China.
Food industry is one of the key sectors which is the mainstay of Indian economy because of its
high share in employment and major contribution to GDP. At present the food processing sector
employs about 13 million people directly and about 35 million people indirectly. The food
market in India is estimated at over Rs. 9,100 billion and accounts for about two third of the total
Indian retail market.
India's food processing sector covers a wide range of products fruit and vegetables, meat and
poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and
other consumer product groups like confectionery, chocolates and cocoa products, Soya-based
products, mineral water, high protein foods etc.
Looking into some of the key facts, India has largest irrigated land in the world. India produces
annually 90 million tonnes of milk (highest in the world), 150 million tonnes of fruits &
vegetables (second largest), 485 million livestock (largest), 204 million tonnes food-grain (third
largest), 6.3 million tonnes of fish (3rd largest), 489 million Poultry and 45,200 million eggs.
Food processing industry is currently growing at around 14%. The industry received FDI
totalling Rs. 7190 million in 2007-08.However, India’s share in export of processed food in
global trade is only 1.5 %; whereas the size of the global processed-food market is estimated at
Rs. 190 trillion and nearly 80 per cent of agricultural products in the developed countries get
processed and packaged.
India has set itself a target of doubling its processed food production by 2015, and will set up 10
food technology parks during the next year with a view to achieving this. According to the India
Food and Drink Report by research analysis firm Research and Markets, by 2012, India’s
processed food output is likely to grow by 44.2 per cent to touch Rs. 4,505 billion, while
packaged food sales will increase by 67.5 per cent to reach Rs. 1,085 billion. On a per capita
basis, per capita packaged food spending is expected to grow by 56.5 per cent to Rs. 903 by
2012.
Opportunities in food
processing in India
• Diverse agro-climatic conditions • Increasing literacy, rapid
lead to a wide-ranging and large raw urbanization and rising per capita
material base suitable for food income resulting in rapid growth and
processing industries in India. changes in demand patterns. This is
Currently a very small percentage creating great opportunities for
(less than 2%) of these is processed exploring the large hidden markets.
into value added products, leaves An average Indian spends about 40
opportunity to explore in the sector. % of household expenditure on food
• One of the biggest emerging items.
markets, with more than 1 billion • Demand for processed /convenience
population and 250 million strong food is constantly increasing.
middle class sets a large consumer • Cheaper workforce availability can
base within the country. be effectively utilized to setup large
• India is the seventh largest country, low cost production bases for
with extensive administrative domestic and export markets.
structure and independent judiciary, • Liberalized policies with specific
a sound financial & infrastructural incentives for high priority food
network. Stable and flourishing processing sector, provide very
democracy is also an opportunistic favourable environment for
attribute of the country. investments and exports in the
sector.
While India has an abundant supply of food, which shows growth of more than 45%
the food processing industry is still nascent: in terms of value.
Strengths
India has access to several natural resources that provides it a competitive advantage in the food
processing sector. Due to its diverse agro-climatic conditions, it has a wide-ranging and large
raw material base suitable for food processing industries.
The chart above describes the process i.e. the Entire Value Chain for a Private Entrepreneur
from Demand Estimation to Consumption. Government i.e. Central as well as State government
along with its agencies supports the farmer and processing units to encourage this sector.
The Stages involved in the value chain are: parameters. The crops thus chosen
are packaged accordingly for safe
1. Market: In this stage, the
transportation to the market. In case
Entrepreneur estimates the demand
of perishable products it also
for crops and decides which crop to
requires to be processed for their
sow
preservation. Processing even helps
2. Input: After deciding on specific in avoiding food wastage.
crops, the entrepreneur ploughs the
6. Transportation: It involves the
crop with the use of fertilizers,
physical movement of the crop and
pesticides, nutrients and water to
processed food from the farm to the
realize a good crop.
actual Market.
3. Pre Harvest: After a good crop has
7. Marketing: Marketing involves
developed, Pre Harvest involves
providing sales platform for the food
maintaining the crop till harvest with
products. Sometimes it is done by
the use of Latest technology and
the producer himself. Government
Fertilizers.
creates a market through setting up
4. Harvesting: It involves the process APMC Depots, online websites and
of separating a full grown crop for also through trade exhibitions.
processing, packaging, transportation
8. Market: Finally, the Chain gets
and finally for consumption.
completed when the crop reaches the
5. Post Harvesting: After Harvesting, market for consumption and the
the crop goes through a chain of farmers as well as the processing
processes to filter the crop on the units get the money out of it.
basis of Quality and many other
Consumption pattern of
household income in India
Food is the major portion of household component in expenditure. This opens up
consumption expenditure across all cities tempting opportunities in the field of food
categorised (Refer graph below). processing. And we can see it is in the
Transportation is the second highest nascent stages of development.
5.2
5.9
7.4 8.8 Education and
7
7.6 recreation
10.4 13.1
8 Apparel
20.3 21.3 20.1
Healthcare
Housing &Utilities
34.6 31.5 34.4
Transportation
35%
Grocery
SHARE OF
EXTENT OF GROWTH
SEGMENT ORGANIZED KEY SEGMENTS
PROCESSING (%) RATE(%)
SECTOR(%)
Raw fruits & vegetables, pulp,
Fruits & Vegetables 02 48 20
canned fruits and pickles
Marine fisheries, frozen products,
Fish 12 - 20
minced fish products
Milk 37 15 Butter, Ghee, Cheese etc. 15
• India produces the widest range of fruits • However less than 2 per cent of the total
and vegetables in the world. vegetables produced in the country are
• It is the second largest vegetable (100 commercially processed, as compared to
million tonnes) and fruit (50 million nearly 70 per cent in Brazil and 65 per
tonnes) producer accounting for 8.4 per cent in USA.
cent of the world’s fruit and vegetable • India’s installed capacity for fruits and
production. vegetable processing
• The share of Fruits and Vegetable exports increased from 1.1
(In million USD)
organised million tonnes in
F&V Processed F & V
sector in fruit 1993 to 2.77 million
490.9 492.2 510.7
processing is 338.5 tonnes in 2007.
278.3 316.5
estimated to • About 20 per
be nearly 50 cent of processed
per cent. 2004-05 2005-06 2006-07 fruits and vegetables
• Fruit Source: APEDA are exported.
production in India registered a growth • Major products exported include fruit
of 3.9 percent over the years whereas the pulps, pickles, chutneys, canned foods,
fruit processing sector grew several concentrated pulps and juices and
times faster at 20 per cent over the same vegetables.
period. • Fruit exports registered a growth of 16
• The total area under fruit cultivation is per cent in volume and 21 per cent in
estimated at 4.18 million hectares and value terms in 2006-07.
7.59 million hectares under vegetable • Mango and mango based products alone
cultivation. constitute 50 per cent of the exports.
Milk Processing:
• Indian stands first in the world in terms • The market for dairy products is
of milk production. expected to grow at 15-20 per cent.
• The current size of the Indian dairy
Some private players includes Hatsun,
sector is Rs.3133.5 billion and has been
Heritage, Modern ,Paras, Dynamix, Parag
growing at 5 per cent a year.
and Metro ,also FMCG players like Nestle
• The dairy sector
Exports of Dairy Products
& Britannia all
ranks first in terms (in Million USD)
210.5
of which sell
of processed foods
liquid milk and
with 37 per cent of 112.7 113.5
73.2 manufactures
the produce being
value added
processed.
2004-05 2005-06 2006-07 2007-08 products like
• The organised
Source: APEDA milk powder,
sector processes an
ghee, butter,
estimated 20 percent of the total milk
cheese, curd and butter milk in small
output in India.
quantities.
• There are 676 dairy plants registered
with Government of India, which come • Taking Dairies to the Next stage:-
under the organised sector.
Indian dairies are ready to use various latest
• The cooperative sector dominates the innovative technologies that improves the
milk industry with over 70,000 village milking efficiency as well as cow
level dairy federations at the state level. throughput including auto ID, innovative
• Gujarat Cooperative Milk Marketing milking claw design, electronic milk meters,
Federation (GCMMF or AMUL) is the stimapulse, an auto shedding system, an
most successful player in the evolution auto cleaning-in-place system (to maintain
of the Indian Dairy Industry. hygiene).
• Milk and milk products contribute to a
.
significant 17 per cent of the country’s
total expenditure on food.
Besides debt, private equity has become a preferred source of raising funds in dairy sector.
PE funds are supported by liberal FDI policies. PE funds include investment from International
Finance Corporation in Modern Dairy (North India), Actis in Nilgiri Dairy (South India), Motilal
Oswal Private Equity in Parag Milk Foods.
Fish Processing:
• India has large marine product and cent (3.9 million tons) came from marine
processing potential with varied fish resources.
resources along the 8,041 km coastline,
Exports of Marine Products(in
28,000 km of rivers and millions of Million USD)
1644.21 1852.93
hectares of reservoirs and brackish 1330.76 1478.48
water.
• India is the third largest fish producer in
2003-04 2004-05 2005-06 2006-07
the world and second in in-land fish
Source: MPEDA
production. • Fish processing is mostly targeted for
• The Fisheries sector in India has been export markets.
classified into marine, inland and • There are over 369 freezing units with a
aquaculture. daily processing capacity of 10,266
• The fisheries sector contributes nearly 1 tonnes and 499 frozen storage units with
per cent to the country’s GDP. This a capacity of 134,767 tonnes.
segment also provides employment to 11 • Processed fish product exports include
million people engaged fully, partially or conventional block frozen products,
in subsidiary activities pertaining to the individual quick frozen products and
sector. minced fish products like fish sausage,
• India’s fish production stood at a level of cakes, cutlets, pastes etc.
6.4 million tonnes. Of this, about 60 per
Grain Processing:
Exports(in Million USD)
• India’s production covers all major Total Cereals Rice Wheat
grains – rice, wheat, maize, barley and 1872.1
1489.2 15851435.9
1381.4 1269.6
millets like jowar, bajra and ragi.
• It ranks third in the production of 297.9
113.8 7.2
grains in the world with a share of 40
per cent, grain processing is the biggest 2004-05 2005-06 2006-07
Source: APEDA
component of food sector. • Total rice milling capacity in the country
• Primary processing constitutes 96 per is 186 million tonnes.
cent with the remaining accounted for by • There are about 516 large flour mills in
the secondary and tertiary sectors. the country, as well as about 10,000
pulse mills.
population, 6 per cent of the cattle, 33 • Indian broiler industry has seen a rapid
per cent of the sheep and 38 per cent of growth in the last few years - CAGR of
the goat population is culled for meat. more than 10 per cent a year since 1998.
• Sports and energy drinks, which is exported and coffee exports stood at
• Out of the total consumption of grape • Products like Tomato Ketchup and Jams
wine in India, around 80 per cent wine currently have low penetration levels,
consumption is from the major cities. but are growing rapidly.
• Ketchups, for example, have a
Integrated supply chain and scale • The country has only 3600
slaughterhouses, 9 modern abattoirs and
of operation
171 meat processing units, and a limited
• Even though India ranks second in number of pork-processing units.
production of fruits and vegetables, • This is one of the reasons penetration of
nearly 20 to 25 per cent of this processed meat is extremely poor at 1
production is lost in spoilage in various per cent in India.
stages of harvesting. • These figures indicate both the need for
• The major problems are poor quality of scale, and the potential or growth offered
seed, planting material and lack of by the sector.
technology.
• Quality produce lead to investment in Processing Technology
technology and ability to sustain a long • Currently most of the processing in India
gestation period for harvest. is manual.
• It also results in better quality of • There is limited use of technology like
processed food. So we need to establish pre-cooling facilities for vegetables,
backward integration like contract controlled atmospheric storage and
farming to improve quality of produce. irradiation facilities. This technology is
• Nearly 90 percent of the food processing important for extended storage of fruits
units are small in scale so not able to and vegetables in making them
exploit the advantage of economies of beneficial for further processing.
scale.
• In case of meat processing, even with the • However, there is increasing acceptance
presence of over 3600 licensed of these products amongst the urban
slaughter-houses in India, the level of population.
technology used in most of them is • India has a large untapped customer base
limited, resulting in low exploitation of and even a small footprint in the
animal population. domestic market would enable the player
• Bringing in modern technology is an to gain significant volumes.
area that existing as well as new • Acceptance in the domestic market and
investors in the sector can focus on, this hence higher penetration is driven by the
will make a clear difference in both following factors:
process efficiencies as well as quality of
Competitive Pricing
the end product.
Consumers of processed foods are extremely
Increasing penetration in price sensitive even a small change in
Backward Integration –
Emerging Business Models
Everybody is well versed with the traditional methods of value chain in food processing.
Looking at the dominance of the sector towards the growth of economy it has been considered
priority sector amongst all. We can see the generic value chain of the food processing industry
below.
TERMINAL
MARKET
AGGREGATORS FOOD
FARM INPUTS ANCILLARIES FOOD RETAILING
AND LOGISTICS PROCESSORS
CONTRACT
FARMING
In recent days trend has been towards integration and collaboration across players in the value
chain, to garner mutual benefits. Such integration is initiated by manufacturers, who are looking
to integrate backward to establish linkages with farmers and logistics provider. This led to two
new models emerging in the sector – Contract farming and Terminal markets.
Contract Farming
Contract Farming is an agreement between the food processor (contractor) , who is typically
a large organized player, and the farmer, whereby the farmer is contracted to plant the
contractor ’s crop on his land. He also agrees to harvest and deliver to the contractor a quantum
of produce, based upon anticipated yield and contracted acreage at a pre-agreed price.
The food processor provides inputs in terms of technology and training to the farmer, to improve
the yield and quality of the produce.
This results in a win-win situation that generates a steady source of income for the farmer and
eliminates supply shocks and assures good quality farm inputs which are crucial for the
processor.
The Government of India has been actively encouraging contract farming endeavours. The
National Agricultural Policy envisages that ‘private sector participation will be encouraged
through contract farming and land leasing arrangements to allow accelerated technology
transfer, capital inflow and assured market for crop production ’.
Terminal Markets
A Terminal market is a central site, often in a metropolitan area, that serves as an assembly and
trading place for agricultural commodities. Here there are different options for disposing off the
produce. It can either be sold to the end consumer, or to the processor, or packed for export, or
even stored for disposal at a future date. It thus offers different options to farmers under a single
roof.
Typically, terminal markets operate on a hub and spoke model where the markets form the hubs,
and are linked to different collection centres (spokes) that are located close to the production
centres. The typical value chain structure for a terminal market, as well as the key activities and
corresponding infrastructure requirements at each level, are depicted in the figure below:
TERMINAL MARKET INFRASTRUCTURE
Banking Finance
Grading, washing & packing
Sales E-auction Storage lines, quality testing,
palletisation, material
Trader/ Processor Warehouse handling, parking for
Retailer/exporters Cold storage transporter.
Ripening Chambers
urban consumers squeezed for time, they Nestle, Cadbury, Heinz and Perfettiae
are slowly demanding more of the have made their presence felt in India.
products they consume. Indian majors like HUL, ITC, Dabur too
have lined up investments in this
• Also, the hygiene factor is facilitating
segment.
growth.
Growth in Retail
• The Indian organized retail industry and processed food is finding its way
in 2008 is estimated at Rs.17,650 in retail stores.
billion and is expected to grow to • Industry estimates the total retail
Rs.23,500 billion in 2010. stock in India stands at 34.8 million
• Although organized retail is around 5 sq ft. Another 62.6 million sq ft of
% of the total market, it is expected mall space is either proposed or
to be seen 35-40% in next 10 years. under various stages of construction
• The annual growth of the retail in the next 2-3 years; only 35% of
market in India is expected to be this supply is coming in Mumbai and
around 8 per cent. Indian market has Delhi.
become the most lucrative market for • It is expected that the share of the
retail investment in the world. two cities to fall from the current
• The great Indian consumer market is 72% of the total stock to 49% by end
still going strong. Existing middle of 2011. This will enable retailers to
class with increasing share of wallet, plan at increasing their penetration
rapid urbanization, increase in the into the Tier II and III markets,
number of working women, large which have lower operating and
number of working young rental costs, and are relatively
population, changing attitudes, tastes untapped.
and lifestyle, globalization , • With a sizeable amount of supply in
indulgence and convenience aspects pipeline, the retailers and developers
are triggering the retail food industry would shift the focus of Indian retail
which in turn will a great boost to the market from lifestyle goods to value
food processing industry. retailing. FMCG and food retailing is
• This also attracts global retail giants likely to be the least affected in this
like Wal-Mart, Tesco, Carrefour SA, downturn and some activity is
Metro AG etc. to enter the Indian expected in this sector.
markets. With increasing number of
shelf space more and more branded
Priority area: The Government of India allowed (100% of profits for five years and
has identified the food processing sector as a 25% of profits for the next five years) for
high priority area and has given a number of setting up of new agro-processing industries
fiscal relief and incentives to encourage to process and package fruits and vegetables
commercialisation and value addition to (F&V). Export earnings are exempted from
items under an export obligation in selected removed. Peak rate of customs duty has been
installation of modern machinery and mega parks are coming up across the
equipment, especially in areas of canning, country in various cities to attract Foreign
dairy plants, specialty processing. Direct Investment (FDI) in the food-
processing sector. Each food park will have
Food laws: Consumer protection against
a cold storage facility, apart from facilities
adulterated food has been brought to the fore
for sorting, grading, food processing,
by the Prevention of Food Adulteration Act
packaging and quality control and R&D
(PFA), 1954, which applies to domestic and
laboratories, among other things. The
imported food commodities and
government has already identified five
encompasses food colour and preservatives,
locations in Maharashtra, Andhra Pradesh,
pesticide residues, packaging, labeling and
Punjab and Jharkhand and one in the North-
regulation of sales.
East region. It is also planning to set up 30
Food parks: In a bid to boost the food food parks across the country.
Ministry also interacts with various Nodal Agencies & Promotional organizations
outlets in India over the next 10 years. company, is reportedly in talks with
• The world's third largest pizza chain, EPIC, a private equity firm in the UK, for
Papa John's, plans to open 100 outlets in the acquisition of its stake in Whittard, an
different parts of the country with an upmarket tea and coffee retailer in the
investment of US$ 51 million. UK.
• Fast-food chain McDonald’s is pumping • France-based Belvedere Group, which is
Trends in consumption pattern
of food
Food On-The- Go western segment (potato chips, cheese
balls) and the newly established finger
India has had a long tradition of salty snacks segment.
snacking, with a host of regional ingredients • The market in India is diverse and large
and flavors creating a smorgasbord of with over 1,000 different snack products
snacks, ranging from fried snacks like chips, and some 300 types of savories. Potato-
‘chaklis’ and ‘samosas’ to steamed fare like based snacks, and in particular potato
chips, are the largest product segment,
holding an 85 percent share of the salty
snack market, followed by snack nuts,
chickpeas and other pulse-based savory
snacks..
• The market is estimated at Rs. 150 • The organic industry is growing rapidly
billion, with 50percent comprising the and has caught the attention of farmers,
organized snacks category. manufacturers and, above all,
percent annually, is sub-divided into the • Organic foods protect from heart disease
traditional segment (bhujia, chanachur), and cancer, as they contain Phenolic
compounds.
• Organic food ensures high food quality, • No wonder healthy food is becoming a
which other conventional foods cannot fast-growth category. Rising awareness
give. Many people prefer to grow and affluence have made health food
organic food in their home gardens, products accessible to a larger segment
because it costs about 20% more than of the population.
the conventional food.
• Fabindia has ventured into the organic
health food products called Fabindia
Organics with no preservatives or colors
added.
• 24 Lettered Mantra, India’s first organic
food store chain has exclusive stores in
Hyderabad, Bangalore and Pune. Godrej
• In recognition of these trends, food
AgroVet’s retail product, Nature’s
marketers in the country have introduced
Basket, is also looking into the
a number of new products, spurring the
possibility of test marketing certified
growth of the health food market.
organic produce through its outlets.
• Several savvy marketers are already
HUL’s 3 Roses brand, with ayurvedic
riding this trend.
ingredients is positioned on the ‘mind
• Amul has introduced a range of
sharp’ category, as its Red Label brand,
functional products, from energy drink
with its ‘Natural Care’ offering.
Stamina to Probiotic Ice-creams,
Health & Wellness Food Probiotic Lassi and Curd, and High
Calcium Milk; Reduced Salt Butter
• This is a trend that plays directly to our
desire to ingest specific foods or
beverages for the purpose of preventing
or palliating a disease or condition.
• From an ingredient standpoint, health
and wellness concerns offer the best
variety of options for processors.
Food as Control
• Zydus Cadila Healthcare, which is • The popular energy drinks in the Indian
working on brand extensions, recently market are Phantom, Red Bull, Effect
introduced Sugar Free D’lite, a low and Gatorade.
calorie fruity drink which is 99 % • Due to the large quantit ies of sugar and
calorie-free and claims not to caffeine, these energy drinks give an
compromise on its taste quotient. instant punch and thus make one feel
energized.
• Red Bull is in fact also gaining currency
as a mixer for alcohol in the party
Luxury Food
• Today, food is about many different
things, including lifestyle choices or
values, and affluent consumers are using
food exclusivity to signal their affluence
or ‘arrived’ status.
• Buying a richer version of the same old
thing seems to be the new flaunt mantra. • Parle’s variant, Milano, is priced at a Rs
10 premium over its existing brand in
the market. Britannia’s Pure Magic and
ITC ‘s Dark Fantasy, a cream-based
Chocolate cookie are also deluxe
versions of their cookies.
• Food Classics Ice-cream by Mother
Dairy is a range of premium ice creams
with more fruit blended with creamy ice
cream.
• Many brands are riding this trend by
• Cadbury Temptations is a range of
introducing up-market versions of mass-
delicious premium chocolate; Amul has
market brands.
added Emmental and Gouda.
Overseas Players
Company Logo Company Products Brief about the company
• The parent company Unilever holds 51.5%of
HUL’s Equity
• India’s largest FMCG Company with
Biscuits, Instant
Hindustan leadership in Home & Personal care products
coffee, Tea, Instant
Unilever
drinks, Jam, Syrups, and Food &Beverages
Ltd
Salt, Wheat flour-atta,
• HUL’s brands so reach across 20 different
categories with combined volumes of about
4mn tons and sales of US$ 2.17 billion
• In 2002, with a turnover of Rs 3 billion, • The member sisters are free to choose
exports worth Rs 100 million, 62 the work they like, rolling papads, or
branches and 40 divisions all over the packing, or preparing the dough.
country, and 42000 members, the Sri • Payment is made on a daily basis. The
Mahila Griha Udyog Lijjat Papad supervisors constantly check for the
(SMGULP) was a women's quality and weight of papads.
entrepreneurial success story in India. • SMGULP inculcates in its members, "a
• From humble beginnings in a thickly commitment to earn a legitimate income,
populated locality of Mumbai in 1959, honesty, and not snatching the fruits of
SMGULP has come a long way. another person's income" and adherence
• The organization gained recognition to quality. Stringent rules of cleanliness
through its most famous product- Lijjat and purity are maintained.
papad. In addition to papads, SMGULP • The whole manufacturing process is
manufactured other household products open to inspection by anybody. A well
like spices, bakery products and laid formula is strictly followed to obtain
detergents. products of a fixed standard of taste,
• A look at any of the branches of color and size.
SMGULP gives the feel of an efficient • In March 1959, seven semi-literate
entrepreneurial set up. women from Gujarat came together to
• The key to SMGULP's success lies in supplement their family incomes and
the feeling of oneness that it creates. create a sustainable source of
• Women above 18 years of age can employment with the skill they knew -
become members of SMGULP by cooking.
signing a pledge of devotion to the • They started out on the terrace of a large,
organization. old, residential building called Lohana
• At SMGULP, workers are referred to as Niwas in Girgaum, a thickly populated
co-owners and the women who work area in south Mumbai. This is where the
there are referred to as sisters. seven housewives, bored and confined to
their homes, saw an opportunity to set up the end of the third year more than 300
an organization 44 years ago. women were rolling papads.
• These women borrowed Rs 80 from • SMGULP is a symbol of the progress of
Chaganlal Karamsi Parekh, a member of women in developing countries like
the Servants of India Society and a India. It took the organization 43 years
social worker. The women commenced to grow from a 7-member team, to one,
business by selling papads. which has 42000 members.
• Within 3 months there were 25 women • The organization not only aims at the
joined them and within 6 months they economic empowerment of women, it
were able to reward themselves with half also seeks to raise the standard of living
gram of gold each with the profit they of women.
had made. • SMGULP has taken a major step
• The group used considerable publicity towards eradicating evils like poverty
through word-of-mouth publicity and and illiteracy.
articles in vernacular newspapers. • Such an organization also forms a vital
• By the second year of its formation, 100 link between social development and the
to 150 women joined the group, and by advancement of rural women.
In this time of slowdown; there may be a need to manage your business differently and build a growth
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