1. Weekly Lecture Series on 5th October 2011
CMS DDU

2. Objectives
To find the reasons behind this Cluster Development
Find the circumstances under which it can be replicate at
some other location also
To Find the Market Leader and know its USP
Comparison Between Papad Cluster of Uttarsanda and
Lijjat Papad
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3. Research Design
1. Sources of Data : Primary and Secondary
sources
2. Primary Data Collection Method: Semi-
Structured Interviews
3. Research method : Descriptive
4. Method of contact : Personal Interview
5. Sampling Method : Snow Ball
6. Sample Size :4+1
7. Sampling Plan : 4 – Papad
manufacturers of Uttarsanda and 1 – Machine
Designer(seller)
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4. About Uttarsanda
Uttarsanda is predominantly a farming
community. Uttarsanda Peoples Cooperative Bank
Limited was established on 9th April 1940 to help
the local businesses and farmers. On 1st March
1967, the Bank of Baroda also opened its branch
office. To help the milk producers, Uttarsanda
Milk Producers Cooperative was started in 1951.
Due to the location along the railway line and
close proximity to Nadiad and Anand, Uttarsanda
has attracted a variety of small industries. There
are several Cold Storage houses, Cement spun
pipe factories, Ice-crème and Papad Factories.
When tobacco was a very attractive cash crop,
there were several tobacco storage warehouses.
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5. Introduction
 Papad is a popular and tasty food item
in the Indian diet since many centuries.
It is essentially a wafer-like product,
round in shape and made from dough
of powdered pulses, spices, powdered
chilly and salt. Variety of pulses and
proportion of pulses and spices varies
from region to region depending upon
preferences of local people whereas
certain varieties are popular on a larger
scale.
 PFA (now, FSSAI) and BIS (IS:2839)
standards
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6. What is Business Cluster?
A business cluster is a geographic concentration
of interconnected businesses, suppliers, and
associated institutions in a particular field.
Clusters are considered to increase the
productivity with which companies can compete,
nationally and globally.
Clusters are also very important aspects of
strategic management.
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7. Prof. Michael Porter claims that
clusters have the potential to affect
competition in three ways:
1. By increasing the productivity of the
companies in the cluster,
2. By driving innovation in the field,
and
3. By stimulating new businesses in
the field.
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8. Types of Business Clusters
By Development
1. Geographical cluster : Papad Industries in Uttarsanda
2. Sectoral clusters : A cluster of businesses operating
together from within the same commercial sector
3. Horizontal cluster : Interconnections between
businesses at a sharing of resources level e.g.
knowledge management
4. Vertical cluster : i.e. a supply chain cluster
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9. By Knowledge
1. Techno clusters : These clusters are high
technology-oriented, well adapted to the
knowledge economy, and typically have as a core
renowned universities and research centers
Ex: Silicon Valley
2. Historic knowhow-based clusters :
These are based on more traditional activities that
maintain their advantage in know-how over the
years, and for some of them, over the centuries.
Ex: Kites in Nadiad
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10. • Low Price
USP
Historic • Availability of Skilled Manpower – large
know Production & Productivity – low cost
how- • Storage Facility
based
clusters
• Each kites moves/passes from different
home to home
Mass • Production in Continuous flow
Produc
tion CMS DDU

11. 3. Factor Endowment clusters :
Ex:1. Pataveliya at Kanjari-Boriyavi
Railway crossing
Ex:2. Rice Mills in Khambhat
Ex:3. Agarbathies in Shrirampuram,
Banglore
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12. Now, back to Papad
• Traditionally this activity was confined to
household making by sun-dry but in view of
increasing demand and availability of machinery
(automation) it has now been developed in
cottage and small scale sector to Ltd Company.
• Three types of processing techniques used are;
1. Handmade and then Sun-dry
2. Semi-automatic
3. Fully automatic (Dryer is Used)
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13. Basic Manufacturing Process
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15. To find the reasons behind this Cluster
Development
Find the circumstances under which it can be
replicate at some other location also
To Find the Market Leader and know its USP
Comparison Between Papad Cluster of
Uttarsanda and Lijjat Papad
CMS DDU

16. Beauty of Business Clusters
 One company will succeed, Competitor &
supplier will immerge.....
 Easy Entry & Low Risk
 All raw material was available here.
 He Initiate with Risk. 'No business can start
without Risk and can start from smaller
Investment‘
• Since 1980
• Started using Pendle Machine with investment of Rs.10000
• Direct Marketing(Door to Door selling)
Said Mr. Trivedi, Uttam Papad, Pioneer of this Cluster
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17. • Job Work
• Daily basis pay to workers
• Scheme of EMI on Machinery by Kirtiraj
• There are not much seasonal fluctuations in sales of
Papad but demand generally goes up by 15 to 20%
during winter season(Nov.– Feb.)
• But for other allied products sell time is only diwali
season. so, 60-65% contribution of annual sells in this
duration only
• Gov. Provides Subsides for Starting the Business as
well as for Expansion
• Industry Enjoys Tax Exemptions
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18. Example of Automobile Industry @ Sanad
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19. To find the reasons behind this Cluster
Development
Find the circumstances under which it can be
replicate at some other location also
To Find the Market Leader and know its USP
Comparison Between Uttarsanda Cluster Papad
and Lijjat Papad
CMS DDU

20. CMS DDU

21. Ingredients Used
For 1 kg Papad,
• Urad Dhal flour (Black Gram) – 1 kg
• Black Pepper Dal – 25 gm
• Soda-Bicarbonate (NaHCO3) – 35 gm
• Salt– 35 gm
• Asafoetida (Hing) – 12.5 gm
• Edible Oil – 25 gm
• Flavors (as per choice) - ground black pepper or garlic, or chili
• Water - 350 ml
 Supply Channel
 Technology
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22. To find the reasons behind this Cluster
Development
Find the circumstances under which it can be
replicate at some other location also
To Find the Market Leader and know its USP
Comparison Between Uttarsanda Cluster Papad
and Lijjat Papad
CMS DDU

23. USP of Market Leader
ISO 9001:2008 and 5S
Strengthen Distribution Network
C-n-F Network
Dealers
Retail outlets
Export Network (U.S., U.K., Australia, Africa)
Turnover : 3.5 Cr. - includes Exports of 65lacs
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24. To find the reasons behind this Cluster
Development
Find the circumstances under which it can be
replicate at some other location also
To Find the Market Leader and know its USP
Comparison Between Papad Cluster of
Uttarsanda and Lijjat Papad
CMS DDU

25. V
s
.
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26. Parameter Uttarsanda Lijjat Papad
Cluster
Established in Year 1980 – 2000 1968
Annual Sales Turnover 20 – 25 > 65O
(Rs. in Crores) include
allied products
Exports (% of total sales < 10 < 10
in Rs.)
Price Range / 80 – 120 163 – 182
M.R.P. (Rs. / kg)
Self Life (months) 2-3 3
Taste (based on sensory Average Very Good
evaluation)
Technology Machine Made Handmade
No. of Units 7 – 8 (regular) 73 Branches and
12 – 15 (only seasonal) 27 Divisions
Employment 200 – 500 > 42000 woman
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27. Issues Identification
o Fast life and Today, majority doesn’t know how to
make Papad?
o Technology not strengthen to compete traditional
o Round shape of Papad IDEA !!!!
o NaHCO3 and NaCl
o Quality Standards
o Think Beyond Papad i.e. Pickle
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28. References
 lijjat.com
 wikipedia.org/wiki/Business_cluster
 indianclusters.org/
 ibef.org/download/Gujarat_190111.pdf
 craftofgujarat.com/showpage.aspx?contentid=1127
 mapsofindia.com
 REPORT ON RURAL CLUSTER DEVELOPMENT - A
CASE STUDY By Society for Economic and Social
Transition, New Delhi
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29. Shri. Jitubhai Trivedi, Utam Papad
Shri. Priteshbhai Patel, Harsh Papad
Shri. Kanubhai Patel, Shreeji Papad
Shri. Ismilebhai Vohra, Yash Papad
Shri. Munnabhai, Kirtiraj Foods, Anand
Prof.(Dr.) Nareshbhai Patel, CMS DDU
Prof.(Ms.) Mansiben Rathod, CMS DDU
Prof.(Ms.) Falguniben Pandya, CMS DDU
CMS DDU