Comprehensive Study of ‘AarzooMasale’ A Village Industrial Unit March 26, 2015
Promotion
Everything that aims to grow large in business takes a small start. With a view to help village women create an opportunity for self employment and self- help. Yugantsethi, a young energetic man who is already working as an executive in Sapient Corporation (Sapient is a marketing and consulting company that provides business, marketing, and technology services to clients.) took the initiative to start something which will add to the income of villagers along with doing their traditional work of farming and animal husbandry. He chose one village named Sakatpur Tal PaldaSohna Gurgaon and met few people from the village. Finally he met the man who could help him in his philanthropic mission. He is Bhim Singh, a trained drawing teacher, who, at present, president of AarzooMasale.
As YugantSethi could spare only Sunday to help this group. He convinced 10 village womens to be initial members at the group.
YugantSethi and Bhim Singh had a meeting in Devilal Park, Sector 56 in Gurgaon and generated an idea of starting to make mango pickles as raw mangoes was readily available in the village, As the group did not have the capital, its first mango pickle was made from mangoes fallen down from trees in wind blowing at a faster pace with the help of a few village women.
This first batch of production could not cover even its cost as nobody was ready to buy this unbranded pickle even in the village at a price which could pay back its cost not to speak of a little bit of profit margin.
Yugantsethi opened his office in a hut with one table and chair with no light and fan.
Bhim Singh- A trained Drawing teacher , did not get a job and hence idea of self-employment struck him. Right now in the group, Mr. Bhim Singh is the President, Mrs. Babita Devi is the secretary and Mrs. Khusbu is the Treasurer.
Motto
To preserve and observe “Dignity of Labour”. No work is small. Believe in the axim “Small turns into big one day”. Initially it started working as Aazoo Self Help Group. After that it changed its name to Income Generation Activity.
Members
Initially it started working with 10 village women members. Later on 5 additional members were introduced in the marketing division. At present there are 15 members in total.
Training of Village Women
1st stage
To push the Aarzoo Group on a track of growth, Mr. YugantSethi and Mr. Bhim Singh got a tie-up with KrishiVigyan Kendra located in the village Sikohpur and sent its first batch of nine women for a training programme of 7 days for preparing AawalaMurraba, Candy pickles etc. Later on women were provided training for product and packaging as well to prevent leakage of masale.
2nd stage
Started making awalamurabba, candy pickles etc. after the women workers got training in KrishiVigyan Kendra adjacent to village Sikohpur.
After one and half month, the Aarzoo Group changed its direction of production and switched over to spices, keeping in view the adulteration in spices genrally sold in general market a few top class brands, the group aimed at providing pure masale at a competitive lower prices.
The main benefit of this switch over was that previously manufacturing of pickles etc. was seasonal, which now turned into regular business over the full twelve months of the year and villagers, who were associated with this group were able to earn additional income throughout the year.
Products of AarzooMasale
Today ArzooMasale brand is producing 40 variety of masalenamed:-
1) Garam Masala
2) Chat Masala
3) Mirchi Powder
4) Kuti Lal Mirch
5) Ajwain
6) Jeera
7) KasuriMethi
8) Chicken Masala
9) Mix Masala Powder
10) Amchoor Powder
11) Garam Masala Sabut
12) Haldi Powder
13) Kali Mirchi
14) Kali Mirchi Powder
15) Long
16) Elychi
17) Rai
18) Sauf
19) PeeliSarson
20) Sarson
21) Kalonji
22) Arhar Dal
23) TejPatta
24) Black Salt
25) Tea Masala
26) Chana Dal
27) Chhilka Dal
28) Masoor Dal
29) Dhaniya Powder
30) Maong Dal
31) MoangDuli
32) BhunaJeera Powder
33) Jeera Powder
34) Raita Masala
35) Pudina Powder
36) Sonth Powder
37) Dal Chini Powder
38) Siknji Masala
39) PanchForn
40) Besan
Its best feature is cleanliness. No stones, no kirkarapan etc.
Division of Work
Different groups of women perform different processes of masala making such as cleaning the raw material, grinding, packing etc. as and when, during the day, they one free from their domestic work.
Initial Investment
When the group started producing AarzooMasale, it initially invested Rs. 6,000 (600 from each member) for purchase of raw material. Mr. YugantSethi and Mr. Bhim Singh had a meeting of the members and tried to explain the level of quality of raw material they wanted to maintain the quality of finished masale and at the same time explored the right sources of raw material. The focus was to get raw material direct from the farmers producing the same around the point of production.
The group was also made aware of how to store the raw material to minimize the normal loss. Till now the profit is re-invested or kept in society account from where financial help to group members is given at a normal rate of interest.
Marketing
It is difficult for any new product to penetrate the market, especially for such a small venture. But as is rightly said “Jahan ChahVahanRaha”, Mr. Bhim Singh, president of this group through his strong determination nitched a place for the group in the market.
First stage sale
Mr. Bhim Singh had his first sale on April 2013 in main sbzimandi, gurgaon by displaying his products in small quantity on a mat and sitting on the mat himself. First day precious sale was only for Rs. 20.
Second stage sale
After a week, second attempt for sale, was in village Kakrola for Rs. 300 only and then Huda Market sector-4 Gurgaon that also displaying products on a mat itself. His determination paid and this time sale was for Rs. 700 only.
Mr. Bhim Singh studied the status of Rehri markets- where and on what days it takes place. Had Goods and went to those places using this own bike from 5 PM to 8 PM and consequently sale took up the momentum.
Third stage sale
To boost up the sale and to motivate the idle roaming youth between the age group of 15 to 20 years to work, Mr. YugantSethi and Mr. Bhim Singh invited such boys to take the masale and sell it wherever they can on a commission basis. The idea worked out and the streets of the villages aware and Idle youths because they were busy in selling the spices and earning a bit for themselves.
The forts gave fruits and the sale for the month January 2015 went upto Rs. 25,000 and the next month Rs. 84,000 and for the month of march 2015 sale rose upto Rs. 1,00,000 a month, a sale of 500 to 600 k.g. spices a month after the startup of 1 year 3 month.
Gradually labourers working in nearby factories have come forward to take up sale assignment on commission base and add upto their income. Mr. Rayee (one retailer in shikhpum picks up Aarzoomasale worth Rs. 30 to 40 thousand in one lot) Sec-23 Gurgaon earns approximately Rs. 15,000 a month by selling AarzooMasale on commission base.
Online Marketing
One can buy AarzooMasale through Khaddi Gram Udyog website also.
Sales team
Besides the above mentions persons involves in selling of AarzooMasale, a structured marketing team of 5 including Mr. Bhim Singh, President of the group, and one salesman in dwarka, one salesman in Akshrdhaam, one salesman in Noida and one in Sec-23 in Gurgaon. The team take up the task for selling from 5PM to 7PM after the other work of the day are over.
Vehicle for Marketing
Society bought its bought its own auto-rickshaw to transport the products at the point of sale thus reducing time and cost as well. The marketing team works even after 7PM if the need be, being the motto “Roti Chhoot Jai, Customer Na Chhutte” as per Mr. Bhim Singh.
Home Delivery
The group does home delivery also without charging extra for it. The group have supplied masale to DC and ADC homes as per the version of Mr. Bhim Singh
Number of Buyers and Users at Present
At present AarzooMasale have 50,000 buyers and users and no complaint received regarding the quality of msale.
Formation of marketing Group of village women
Eventually, rural women from different village formed their marketing groups to sell AarzooMasale on commission based. This came into being around 2nd half of year 2015. Those groups take their own time to sell the goods ranging from 1 month to 2 month for selling their consignment.
Purchase Policy
‘AarzooMasale’ buy raw material for preparing masale in bulk mostly directly from farmers.
Plant and Machinery
Aarzoo group uses one portion of big house of Mr. Bhim Singh at village Sakatpur for production and storage of raw material as well as finished and packed masale. The group has all the requisite machines for grinding and packing of masale court yard of the house itself is used for drying up of raw material in the sun as red chilly etc.
One grinding machine worth Rs. 17,500 was donated by Mr. Rakesh (Bhai) from village Daultabad as a mark of assistance to the society (Aarzoo group)
Special Strategy
To grab the opportunity of incidental income such as to make mango pickle or Aamchurr from fallen down raw mangoes.
Publicity
On 22 October 2015 The Maurya School inPalamVihar, Gurgaon gave an opportunity to Aarzooself help group to participate at Maurya School’s DussehraMela. It was an overwhelming response to the confidence of Aarzooself help group products i.e. spices.
India is known for its varieties and quality of spices all over the world. India is producing pure and best quality of spices. On 26 March, 2015 we students of SGT University visited AarzooMasale,at village Sakatpur. AarzooMasale has great concern for purity in spices as no compromise regarding quality can be endured.
Advertisement
AarzooMasale had its demonstration plus sale in Pusha Institute in March 2015 and had their Canopy in Maurya School inPalamVihar Gurgaon on January 2016. They use pemplets, social media and word of mouth advertising methods.
Future Targets
- To increase the number of users of Aarzoo Masale to one lakh.
- To extend the market.
- To be one of the leaders in masale within coming 10 years.
Challenges
Small scale industries play a vital role in the economic development of our country.
This sector can stimulate economic activity and is entrusted with the responsibility of realising various objectives generation of more employment opportunities with less investment, reducing regional imbalances etc. Small scale industries are not in a position to play their role effectively due to various constraints. The various constraints, the various problems faced by AarzooMasale in specific are as follows:
(1) Finance:
Finance is one of the most acute problem facing AarzooMasale Finance is the life blood of an organization and no organization can function properlу in the absence of adequate funds. The scarcity of capital and inadequate availability of credit facilities hampers the growth of this unit.
(2) Raw Material:
Small scale industries normally tap local sources for meeting raw material requirements. These units have to face numerous problems like availability of inadequate quantity, poor quality and even supply of raw material is not on regular basis. All these factors adversely affect the functioning of these units.In regard to Aarzoomasale though the unit tries to purchase directly from farmers but sometimes they have to buy from the local market as well because farmers of the area generally sells their products directly in the Mandi.
(3) Marketing problems
These industries mainly exist in villages and due to lack of transport and communication facilities they are handicapped in finding suitable markets for their products. AarzooMasale also face the same problem though they have bought their own autoriksaw but one is not enough.
(4) Lack of Managerial Talent
Cottage and small scale industries are mostly run by the small businessmen having no training of management and organization. How these industries, therefore, can stand before the large seals industries which are managed and organized by the specialists of that field
In the case of AarzooMasale Mr. Bhim who is practically the executive manager of this unit is trained drawing teacher despite of his all efforts and dedications he cannot compete with expert specialists in the market.
(5) Competition with large-scale industries
The main problem before these industries is that they are unable to compete with large-scale industries. The economies of large-scale production are not available to them and therefore they fail to compete with large-scale industries.
In the case of AarzooMasale despite of their purity and quality they are unable to beat to known brands like MDH masale, Ashok Masale etc.
(6) Technology:Small scale entrepreneurs are not fully exposed to the latest technology. Moreover, they lack requisite resources to update or modernize their plant and machinery Due to obsolete methods of production, they are confronted with the problems of less production in inferior quality and that too at higher cost. They are in no position to compete with their better equipped rivals operating modem large scale units.
As far as AarzooMasale is concerned the women workers do most of the production processes manually.
(7) Infrastructure:
Infrastructure aspects adversely affect the functioning of small scale units. There is inadequate availability of transportation, communication, power and other facilities in the backward areas. Entrepreneurs are faced with the problem of getting power connections and even when they are lucky enough to get these they are exposed to unscheduled long power cuts.
AarzoMasale has a poor infrastructure and faces the problem of power cut.
(8) Project Planning:
Another important problem faced by small scale entrepreneurs is poor project planning. These entrepreneurs do not attach much significance to viability studies i.e. both technical and economical and plunge into entrepreneurial activity out of mere enthusiasm and excitement.
They do not bother to study the demand aspect, marketing problems, and sources of raw materials and even availability of proper infrastructure before starting their enterprises. Project feasibility analysis covering all these aspects in addition to technical and financial viability of the projects, is not at all given due weight-age.
Inexperienced and incomplete documents which invariably results in delays in completing promotional formalities. Small entrepreneurs often submit unrealistic feasibility reports and incompetent entrepreneurs do not fully understand project details.
Moreover, due to limited financial resources they cannot afford to avail services of project consultants. This result is poor project planning and execution.
Same is in the case with AarzooMasale.
(9) Skilled Manpower:
A small scale unit located in a remote backward area may not have problem with respect to unskilled workers, but skilled workers are not available there. The reason is Firstly, skilled workers may be reluctant to work in these areas and secondly, the enterprise may not afford to pay the wages and other facilities demanded by these workers.
Besides non-availability entrepreneurs are confronted with various other problems like absenteeism.
In the case of AarzooMasale the village women are not properly trained for the job and moreover due to their domestic work they are absent from their job abruptly.
