Business | Women Empowerment | Start-up
7 Women Entrepreneurs Who Made $16B From 1.2 Dollar Loan
the power of starting from small capital and unity
Ps: This story had been rejected by big pubs, since not fulfilled their criteria
7 women with no significant education or qualification, yet, somehow managed to build a business empire worth over $16 billion with more than 60 branches housing over 40,000 employees.
How did they do it?
The story of Shri Mahila Griha Udyog Lijjat Papad, is a story that will question your understanding of what it takes to start a business.
The fascinating thing about this company is not about the growth but the business philosophies that are somehow in close resemblance with extraordinary companies like Starbucks and Apple.
The question here for every one of us is,
What is so special about this papad company?
How has it lasted for more than 62 years?
The answer lies in this incredible history of Lijjat Papad.
The History behind Papad sisters 📖
- Those were the early days when women were confined to the kitchen and their homes. The time, When India was underdeveloped, only 8% of women in India can read and write.
- In 1959, seven Gujarati women from Lohana Niwas, Bombay (now Mumbai) wanted to start a sustainable livelihood with a business idea where they don’t have to step out of the house, wouldn’t need an education, and yet could produce a competitive product in the market.
- Determined as they were these seven women, borrowed rupees 80 from Chhaganlal Karamsi, a social worker who taught them everything from quality control to running a business enterprise.
- On March 15, 1959, they sold the first 4 packets of papads to a shopkeeper which went viral as the taste and quality of it attracted many.
- Within the first three months, there were 25 women making papads and in the very first year, they recorded a sale of rupees 6,196.
3 Major traits of Lijjat — to the business empire!
1. Women's Empowerment >>> Money 💸
When the business started scaling out, they had the opportunity to hire women at a cheap cost because it was one of the rarest avenues for women to work from home.
When these women had their first board meeting, they established a fact that the primary goal of the business is not to make money but to empower the women and to provide them the livelihood to nurture their families.
The money can only be a fuel to scale the impact of women in India, not the sole purpose of our existence — agenda of Lijjat
That’s when they introduced the ownership.
“Make your Goal more than Money. Make it about helping people and creating a better future” — Maxime
2. Ownership valuing workers
Instead of hiring women, they gave out ownership to every single woman who joined their business. Also, they were named “Lijjat Ben” which is “sisters” not as employees.
This is what we call Collective ownership wherein every employee owns a small part of the company such that the profit and losses of the company are shared with every individual of the organization.
So regardless of age, religion or caste, even if in the lowest of the hierarchy of the company they still own a part of the organization.
Responsibility = Accountability = Ownership
A sense of ownership is the most powerful weapon, a team or organization can have — Pat Summit
(Out)Standing Example
This attribute of collective ownership is one of the foundational principles of Starbucks, which made them an extraordinary company.
Just like the sisters in papad, they considered the Starbucks employees as a partner of the company.
From baristas who serve coffees to the senior managers, are offered the stock options of the company.
This move develops a deep sense of ownership which cultivates the culture of greatness' wherein motivates them to contribute diligently towards the growth of the organization.
The only difference between these two companies is that Starbucks ideated this with MBA masterminds and million-dollar capital backing. Here the 7 sisters of Lijjat started their business way before Starbucks, in 1959 without even having an MBA degree.
3. Sticking to Mission & Vision of company
“Outstanding People have one thing in common: An absolute sense of mission” — Zig Ziglar
For most of us, the mission/vision statements are stupid formalities, as they have no significance to us.
The corporate companies with missions are just fancy words written on the wall.
In the end, if your boss wants to kick your ass out of the company, he's going to do it, anyway. This is the reason why most of us don’t understand the value of a mission statement.
The mission or vision of a company forms the foundation of which can sustain their growth for a century. If not done right, it can cost a loss of million dollars.
Let’s take the classic example from the company, Apple! 🍎
When Steve Jobs was fired from apple in 1984, it was million dollar company.
Until he was there, the company was sticking to its values and was a formidable player in the industry.
After his absence, they derailed from their path. Within just 10 years they were almost about to go bankrupt. They called Steve Jobs back to set the company in its primary goal.
He just raised one question to all engineers, designers, and managers up there that what does apple stands for?
Because the company lost its identity creating products with no sole purpose back then and customer loyalty faded away.
After questioning the employees working there, the entire team got cleared of what is they are supposed to do?.
This led them to start the campaign that told the world what they stand for, “Think different”.
Within 2 years, the products released changed the world forever!
In over 62 years of existence, not a single time has Lijjat deviated from its core values. Even today, with over 69 branches who imported to 15 countries, they still abide by their philosophy of business.
“ Sarvodhaya — Progress for all” — Lijjat Motto
Other companies vs Lijjat — The difference
- We live in a world where a billion-dollar company with a slight change in their policies, wouldn't think twice before firing thousands of their employees and putting their families' life at stake.
On the other side, we got Lijjat papad, with every single purchase of machinery to their automation, they make sure not a single women are asked to leave the company. The organization is 100 percent sure that it's not on making more money but on empowering women and giving their families a better quality of life.
- A company that would do anything to bring out their profits in place of worker's life.
On the other hand, Lijjat papad ensures the extra profits to be sponsored to education of the children of their frontline workers.
Conclusion
Lijjat papad moving towards their vision with strong business acumen is an inspiration to all startups who have less capital and young aspirants all over the world.
In this pinnacle of the technology world, we tend to doubt our own capabilities, and here we see a standing example of 7 powerful women with no quiet background, building the business empire that is now empowering the generation of women, all across the country.
If this isn't the epitome of eminence, I don’t know what is
“Chase the vision, not the money, The money will end up following you” — Tony Hsieh
References
1. Lijjat papat
2. News
3. Rags to riches
