Women and Entrepreneurship

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Themes: Woman Entrepreneurs
Period : -
Organization :Mahila Griha Udyog, Balaji Telefilms Limited, Biocon
Pub Date : 2003
Countries : India
Industry : Varied

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Case Code : LDEN013
Case Length : 13 Pages
Price: Rs. 300;

Women and Entrepreneurship | Case Study

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In September 1966, it was formally recognized as a unit belonging to the 'processing of cereals and pulses industry group' under the Khadi and Village Industries Act. It was also recognized as a "village industry" by the Khadi and Village Industries Commission (KVIC).24 In 1966, SMGULP was granted a working capital of Rs. 0.8 million by KVIC and was allowed certain tax exemptions. It was also registered under the Bombay Public Trusts Act, 1950, as a Public Trust. In 1966, SMGULP evolved into a formal organization and the member sisters adopted the first written constitution. The logo chosen read, "Symbol of Women's Strength". Only women could become members; men could not become members of the organization and did not have any ownership rights. Men working in SMGULP provided only functional support. The first branch of SMGULP was set up in Valod, Gujarat, in May 1968. Whenever a new branch was established, a few member-sisters from the established branches stayed there for a while (they took turns doing so) and trained the new member-sisters who had joined the new branch. Once the new member-sisters had learnt how to run the branch and monitor its activities, the branch functioned as an independent entity.

In this manner, branches were established in all states. And the first branch that was set up in any particular state of India helped the other branches that were later opened in that state. The central office in Mumbai had the overall responsibility for the functioning of all the branches. SMGULP’s branches and divisions were spread across fifteen states of India. Mumbai itself had 17 branches. Among the various divisions were the Sales, Export, Advertising, Printing and Polypropylene divisions. As the number of branches and divisions increased, SMGULP's sales also grew by leaps and bounds The organization soon diversified into other allied areas that seemed feasible for a cottage industry. In 1988, the group diversified into detergent production. The detergents were sold under the brand name SASA. Later, soap cakes and liquid soaps were also manufactured under the same brand name. SMGULP’s detergent manufacturing business expanded greatly over time. SMGULP emphasized equality. All the members were considered equal and were referred to as sisters. All kinds of work were also given equal importance; no work was considered inferior or superior to any other. The women were also given the freedom to choose the work they liked best; be it preparing the dough, rolling papads or packaging. Quality was also emphasized and supervisors constantly checked for quality and weight against set standards. SMGULP was based on sound, commercial principles. Since the beginning, all the members were aware of the importance of running the institution as a business enterprise, keeping a constant vigil on every aspect of its working, and maintaining accounts properly. The main aim of SMGULP was to help members earn an honest income through legitimate means. It provided self-employment opportunities to women and helped inculcate in them a measure of self-confidence and self-reliance. Business was also done ethically. Care was taken to see that the products were priced reasonably, and whenever the cost of raw materials fell, the prices were also revised downwards. These revised prices were advertised in newspapers to ensure that the distributors did not overcharge. Labor charges worked out to 20-25 percent of the consumer price, raw materials consumed 55-60 percent, sales and other administrative expenses accounted for the remaining 20 percent. This principle was followed for all its products, be it masalas or synthetic detergents.

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24] The KVIC is a statutory body set up by the Government of India in 1957. It is involved in the development of Khadi (handloom cloth) and other village industries as part of rural development.