Growth and development would be a common goal across the corporates, in general. Company generally will look for maximizing the profit, optimizing the investment and reducing the loss. So many corporates involve in cost cutting and employee reduction approaches. But over the evolution of corporate cultures, when corporate developed and grew bigger, there was an emphasis on certain corporate social responsibility. They might involve employee friendly condition, competitive salary and many a times, giving back to the society in which the corporate had spread its roots to develop and establish itself in the business world.
In early times, milk vendors had to earn by traveling large distance and door delivered the milk products. This resulted in huge loss as there would be a lot of traveling resulted in loss and contamination of milk. Amul (Anand Milk Union Limited), introduced co-operative societies and developed the local milk vendors for the development of the firm, aiding a mutual development. The keys behind the success of the Amul was innovation in process technology, guaranteed purchase of milk from farmers, pre-fixed price for the milk products, maintaining quality of milk and milk products till it reached customers and development of co-operative societies.
Mr Varghese Kurian, who was associated with Amul, shared his concerns with the farmers and organized marginal milk producers. The company established modern economics, technological innovation and a cooperative with farmers as stakeholders. It worked with farmers to maximize the milk production, efficient supply chain management of milk and milk products. It eradicated middlemen concepts and helped poor farmers to earn more through cooperative stores. The growth strategy of Amul aided the development of the local society as whole which aided their economic development and increase in the income rate of the each farmer. The company expanded with inviting foreign investments and thereby increasing socio-economic status of the local community people.
Another example of an inclusive growth success story is ‘Lijjat Papad’. It was a domestic organization, operated by women for women. It was started with humble aim to derive small income to the family went on to become a cooperative with turnover of more than 300 Crore with 45000 women as its members. A small group of women started making papads and sold it for a nominal profit rate. As it initially had success the number started getting bigger and bigger. The work environment was not competition oriented one but that one cared for the development of the people and organization.
The company’s strategy was to decrease the production cost by optimizing the quality. It did not look up for any donations and worked like a family where decisions were made on consensus. It developed a cordial and with mutual beneficial relationship with dealers across India. It soon developed and made its presence with other products such as Khakras, Masalas, Lijjat ATTA, Swadeshi ATTA, Detergents. It started manufacturing their own packing bags to minimize the running cost. The raw materials were purchased centrally to maintain uniformity and ensure quality of the products. Advertisement and appointment of distributors were done only select areas, as a result of their market research. It enabled them to concentrate on a particular section of the market, with relative ease. The distributors were appointed only after personalized visit to the SKUs of the distributor to maintain standard and establish a personalized relationship with them.
Considering the above two businesses that operate based on cooperative model, empowering people in villages of our society helps contribute vastly to development of our Nation. Social Entrepreneurship is a road less traveled in India. Such entrepreneurial initiatives are very essential for Nation Building by young Entrepreneurs.