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Lijjat, the cooperative of India

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New Delhi: Cooperative societies have played a significant role in the development of the Indian economy, besides empowering the women. The overwhelming success of cooperative societies can be gauged by the fact that 97 per cent of Indian villages claim to have a cooperative society run by its own villagers or by the government.

The Indian co-operative society model

An Indian co-operative society business model involves individuals of the same strata united to promote their common economic interest. It aims at betterment of the members and not on making profits. This model is mostly common among needy people who have the urge to stand on their own legs.

Unlike a company, cooperative is an organization where all the members are the stake holders and the profit is split equally among them.

The Success story of Lijjat:

Lijjat Papad is much more than a household name in India. Shri Mahila Griha Udyog Lijjat Papad has epitomized the overwhelming story of “rags to riches”. Starting with a meager loan of Rs 80 in 1959, the cooperative registers an annual sale of a staggering Rs 301 crore now.

The unique selling proposition of the cooperative is its assurance of quality at a reasonable price. The cooperative has always ensured that every operation runs smoothly. Shri Mahila Griha Udyog Lijjat Papad members have always earned a comfortable profit and its agents get their due share.

Gandhian simplicity and ethical workplace values have spring-boarded to the zenith and made it a model for other aspiring cooperatives.

The modus operandi

A bevy of women goes to the Lijjat branch to knead dough, which is then collected by another group of women for rolling it into papads. When the first group of women comes in the morning, they taste the previous day’s production and the quality gets automatically checked. After the quality check, another set of women pack the tasted papads for distribution.

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Global presence

Lijjat has spread its wings beyond India. Exporting the product to various countries including United States, the United Kingdom, the Middle East countries, Singapore, Hong Kong and Holland, the company has clocked a turnover of Rs 10 crore. Though the cooperative does not export on its own , recognized professional merchant exporters handle the business.  At present, 30 to 35 per cent of the production of Lijjat Papad is being exported.

Recipe behind the success

Sharing of power and the Sarvodaya philosophy has helped the organization achieve such stardom. The authority decides the manner in which profit or loss should be apportioned among the members. A committee of 21 members manages the affairs of the institution. However, all decisions, major or minor, are based on consensus among members. Any single member’s objection can nullify a decision.

The cooperative started by seven women on a terrace of a building in Girgaum in Mumbai has scripted a success story because the members were pledged bound to share the destiny of each other. The tradition is still prevalent.

(Picture Courtesy: www.plus.google.com, www.psbt.org)

 

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Swiggy to use digital payments for delivery fleet

Founded in 2014, Swiggy aims to "change the way India eats" and is currently operational in cities like New Delhi, Gurugram, Mumbai, Pune, Kolkata, Bengaluru, Hyderabad and Chennai among a few others

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Another step towards digitizing India
Encouraging Digital Transactions by exempting service tax on Cards (Wikimedia commons)
  • Swiggy is an online food ordering platform
  • It will now allow digital payments for delivery feet
  • this method will prevent any leakage in cash payment process

Online food ordering and delivery platform Swiggy on Monday said it would use privately-run ICICI Bank to allow its delivery fleet to make digital payments.

“Through the use of Unified Payment Interface (UPI)-based solution for instant fund transfers and automated cash deposit machines at ICICI Bank branches and ATMs across the country, the delivery fleet will have a hassle-free way of transferring funds,” the company said in a statement. Swiggy operates with a fleet of over 20,000 delivery persons delivering food from over 25,000 restaurants across 12 cities.

These digital payments will prevent leakage in cash payments. Wikimedia Commons

With cash-on-delivery being a widely used method of payment on the platform, the digital payment methods allow the delivery men to quickly transfer the funds to Swiggy, saving their time, according to the statement.

“With the delivery fleet being the backbone of Swiggy, the adoption of the digital payment solutions will support the ease of operations and save their time and thousands of kilometres of travel,” said the company’s Chief Financial Officer (CFO) Rahul Bothra in the statement. The digital payment methods will also help in preventing any cash leakages, the company said.

Also Read: Rise Of Digital Media Unstoppable: Experts 

Founded in 2014, Swiggy aims to “change the way India eats” and is currently operational in cities like New Delhi, Gurugram, Mumbai, Pune, Kolkata, Bengaluru, Hyderabad and Chennai among a few others. IANS

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