In 1959, seven women in Mumbai began making papad with a small borrowed amount of ₹80. Their first production consisted of only four packets. They were not starting with a large factory, outside investors or a sophisticated business plan. They used a skill they already had—making papad—and created a system that could provide women with a way to earn while working within the realities of their lives at the time.
That small beginning eventually developed into Shri Mahila Griha Udyog Lijjat Papad, one of India’s best-known examples of a women-led cooperative enterprise. For aspiring entrepreneurs, the value of the story is not a mythical “₹80 became ₹1,600” return. It is how a very small operation gradually built quality, distribution, shared ownership and scale.
Where Did the Lijjat Papad Story Begin?
Lijjat began on 15 March 1959 in Girgaum, Mumbai.
Seven women came together with the objective of creating a sustainable source of income using their existing ability to make papad.
The founders included Jaswantiben Jamnadas Popat and six other women from the neighborhood.
They did not begin with ₹80 of their own pooled investment. Historical accounts describe the initial ₹80 as money they borrowed to purchase ingredients required for production.
Their first batch was extremely small—only four packets of papad.
They sold these through a local merchant.
This is important because the actual story is much more useful than the exaggerated version often repeated online.
They did not make an instant 20-times return and suddenly become a large company.
The enterprise grew gradually.
The First Business Decision Was to Use a skill they already had..
The founders did not begin by searching for a fashionable or high-growth industry.
They looked at something they already knew how to do well.
Papad making was familiar to them, and the product could initially be produced without a large industrial setup.
That lowered the amount of capital required to test whether the activity could generate income.
For a small entrepreneur today, the amounts and business environment are completely different, but the underlying decision remains practical: the first business does not always need to begin with expensive machinery.
Understanding the product, customer and production process can be more important than starting with a large investment.
Quality Became More Important Than Selling Cheap
An interesting part of the early Lijjat story was the emphasis placed on maintaining consistent quality.
The founders received guidance from Chhaganlal Karamshi Parekh, commonly referred to in accounts of Lijjat’s history as Chhaganbapa.
Instead of producing different qualities of papad simply to compete on price, the organization moved towards consistent standards.
That decision mattered as the business expanded.
If ten people make a food product and each product tastes different, the customer is effectively buying ten different products under one name.
A brand can grow only when buyers know reasonably what to expect.
Lijjat therefore developed processes for maintaining consistency as the number of women involved in production increased.
Growth Did Not Require Moving Every Woman Into a Factory
One of the distinctive features of Lijjat was its decentralized production model.
As membership expanded, women could undertake part of the papad-making process from their homes, while other activities such as raw-material procurement, quality control, weighing, packaging and distribution were organized through the institution.
This made the operating model suitable for a large number of women who might otherwise have found it difficult to take conventional factory employment.
The model also shows why operations have to match the people available to run the business.
A business structure that works for ten people does not automatically work when the organization grows to hundreds or thousands.
Processes have to change while maintaining the final product standard.
From Seven Women to a Larger Collective
The operation began to attract more women relatively quickly.
Within the early months, additional women joined the enterprise, and the organization had to improve equipment, storage and production arrangements.
The business also faced practical problems.
For example, Mumbai’s monsoon made the traditional drying process difficult. Instead of treating the problem as a reason to stop permanently, the women adapted their drying arrangements so production could continue more effectively.
This type of operational problem is common in small manufacturing and food businesses.
Growth is rarely a straight line.
Raw-material supply, climate, quality, manpower, packaging and distribution all create practical issues that have to be solved one by one.
Lijjat Was Built as a Business, Not as Charity
Another important part of the model was its emphasis on self-reliance.
The institution was created to generate income through production and sales rather than depend on charitable donations for normal operations.
Members were treated as participants in the enterprise rather than simply beneficiaries receiving assistance.
This distinction became central to the Lijjat identity.
The women became known within the organization as “sisters,” and the structure developed around collective participation and shared responsibility.
The model eventually became widely associated with women’s economic empowerment because women were earning through productive activity while participating in the organization.
How Did Lijjat Build a Recognisable Brand?
Making a good product was only one part of the business.
The organization also had to create recognition and reach customers.
Over time, Lijjat developed standardized packaging, trademarks, advertising and a distribution system.
The familiar Lijjat identity became important because customers were no longer purchasing papad only because they personally knew the women who made it.
They were buying a brand.
That transition—from local product to recognizable brand—is one of the hardest stages for a small food enterprise.
It requires consistent quality, packaging, pricing and distribution rather than production alone.
Lijjat also expanded beyond papad into other product categories over its history, although papad remained the product most closely associated with the brand.
What Can a New Food Entrepreneur Take From This Story?
The story should not be interpreted as evidence that anyone can start with ₹80 today and automatically build a large business.
Costs, regulations, packaging standards, competition and customer expectations are very different now.
A person starting a papad, pickle, spice, snack or other food-processing business today should first calculate the actual cost of raw materials, packaging, licenses, equipment, labor, and working capital.
Food businesses also need to follow the applicable FSSAI requirements and other registrations depending on their scale and sales model.
The useful part of the Lijjat example is the sequence in which the business developed.
It began with an existing skill and manageable production. Product quality was protected. More producers were added as demand developed. Operational problems were solved gradually. Distribution and branding were strengthened as the organization became larger.
That is much more realistic than treating entrepreneurship as a story where a small amount of money suddenly becomes crores.
Does a Small Food Business Need a Project Report?
A person testing a very small home-based business may initially work with a simple costing and business plan.
However, when the entrepreneur wants to purchase machinery, establish a formal production unit, obtain a bank loan,, or apply under an eligible government scheme, a proper project report becomes more useful.
The report should calculate the real investment requirement.
For a papad business, this may include raw materials, mixing or processing equipment, drying arrangements where required, packaging, labor,electricity, premises and working capital.
Expected sales should then be linked to actual production capacity rather than simply assuming that everything produced will automatically be sold.
Can Women Entrepreneurs Get Government Support for Small Businesses?
Different Central and state programsan support eligible women entrepreneurs, micro-enterprises, food-processing businesses and self-employment projects.
- But there is no single scheme that applies to every woman or every food business.
- Eligibility depends on the applicant, business activity, location, project cost and current scheme rules.
- For example, an eligible new micro-enterprise may examine programsuch as PMEGP depending on the activity and financing requirement.
The correct approach is to first design the business and calculate its actual cost, then identify schemes for which that project genuinely qualifies.
Conclusion
The real Lijjat Papad story is more valuable than an exaggerated “₹80 to ₹1,600” claim.
Seven women began with borrowed capital, an existing skill and four packets of papad. The organization then developed by bringing in more women, improving operations, maintaining product standards and building a recognizable brand.
The scale came over time.
For someone planning a small food-processing business today, the practical starting point is similar in one respect: understand the product, calculate the actual cost, identify customers and build a model that can grow without compromising quality.
Sharda Associates helps entrepreneurs convert such business ideas into realistic project reports and financial plans when they are ready to move from a small concept towards a financed or organized enterprise. For a CA-certified project report for only Rs 2999, turn to Sharda Associates, which has a proven track record of 45,500+ successful reports across India. Call us now at 8989977769 for experienced advice.
Frequently Asked Questions
Q1. What was the true beginning of Lijjat Papad?
OnMarch 15, 1959, seven women in Girgaum, Mumbai, started producing papad using ₹80 borrowed to buy ingredients. This marked the beginning of Lijjat. There were just four packets in their initial manufacture.
Q2. Was the ₹80 investment sufficient to launch a sizable company right away?
No,manufacturing, quality assurance, distribution, membership, branding, and reinvestment all contributed to the company’s slow growth. The ₹80 tale shouldn’t be marketed as a quick, profitable investment.
Q3. What made the founders decide to make papads?
Insteadof immediately investing in a massive plant or expensive technology, they leveraged a skill they already had, which allowed them to start production with relatively little capital.
Q4. What was unique about Lijjat’s business model?
Manywomen were able to work in manufacturing thanks to its decentralized style, even though the organization handled sourcing, quality assurance, packaging, and distribution.
Q5. How crucial was product quality to Lijjat’s expansion?
Akey component of the concept was quality consistency. As the number of participating ladies rose, standardizing the product helped guaranteee that consumers received a fairly consistent product.
Q6. How did Lijjat go from a small business to a well-known brand?
Thecompany progressively created standardized distribution, branding, trademarks, packaging, and advertising so that consumers could identify and buy the product outside of their own local connections.
Q7. What lessons might the Lijjat story teach today’s small food entrepreneurs?
Starting with a manageable product, maintaining quality control, progressively resolving operational issues, and expanding only when demand and organizational capability grow are some of the most important lessons.
Q8. Does it only need a modest sum of money to establish a papad business today?
Not always. The costs of raw materials, machinery, packaging, labor, real estate, licenses, working capital, compliance, and marketing must all be taken into consideration by modern business owners.