Management of Co-operatives

By –
Prof. Pulak Chakravarty
 Contents
1. Consumer Cooperative Societies…………………………...
……….2
2. Apna Bazaar –
Introduction………………………………………....3
3. History…………………………………………………………….4
4. Role……………………………………………………………….6
5. Purpose of
Establishment……………………………………………7
6. Outlets…………………………………………………………….8
7. Registration, Elections and
Franchise………………………………..9
8. Organisation
Structure…………………………………………….11
9. Departments…………………………………………….………..12
10. U.S.P……………..……………………………….……….18
11. Sources of Income….……………………………….…...…
19
12. Exports and Tie-ups………..……………………….……...20
13. Sister Concerns………….………………………………....21
14. Financial
Analysis…………………………………………...22
15. SWOT Analysis…………...…………..…………………...24
16. Future Plans…………….……………………………….…28
17. Recommendations……………………………………....….30
18. Conclusion…………………………………….……..….…31

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 Consumer Co-operative Societies
Consumers are unorganized and therefore exploited by traders in price,
quality and weight. Consumer co-operatives protects the interests of
consumers against artificial scarcity, over charging of prices, supply of
sub standard goods and the unfair trade practices distorted by private
traders.

Definition:-

Maharashtra Co-operative Societies Act, 1960, defines consumer co-

operative society as a society, the object of which is:

 The procurement, production or processing and the distribution of

goods to or, the performance of other services for its members as
also other consumers,

 The distribution among its members and customers, of the profit

occurring from such procurement, production, processing and
distribution are in proportion as prescribed by rules or bye-laws of
the society.

A consumer co-operative society is basically formed for the promotion

of the interests of the consumers.

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 Composition of Consumer Co-
Operative Societies
National Co-operative Consumers’

State Co-operative Consumers’

Federation (28)

Wholesale / Central Stores

Departmental Stores (Apna

Primary Consumer Co-operative

Stores (26469)
Rural Industrial Workers Consumers’ Stores

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 Introduction
Brand name of Mumbai Kamgar Madhyavarti
Grahak Sahakari Mandal Ltd
Date of Incorporation 9th May 1948
Constitution Multi State Co-operative Society
Sector Private
Industry Retailing
Registered Office 106-A, Govingi Keni Road, Naigaon,
Dadar [East], Mumbai 400014

Apna Bazaar, probably the oldest and largest consumer co-operative

multi-state society with a customer base of over 12 lakhs. The Rs 140-
crore retail chain, that, for over 55 years remained largely “middle-
class”, Apna Bazaar has 80 outlets in Mumbai, Thane and the
neighbouring Konkan region. It has recently opened its first shop outside
the state in Goa. It recorded a turnover of Rs 127 crore for the year
2003-04.

 We are the biggest chain of supermarkets in India operating with

more than 500 outlets throughout the state, selling more than 6,000
essential commodities.

 We are the only biggest supermarket chain that keeps in view the
development of consumer association, indirectly cooperates with
every activity and supports consumer rights to acquire quality
products without compromising on quality.

 We possess one of the best and biggest warehouse facilities. The

same is well equipped, scientifically tested to be of quality one. It also
provides direct employment to more than 1,000 volunteers and

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 indirect employment to more than 10,000 people. In this way it has
been a good job creator and sustainer.

 Our outlets are well spaced to display the vast range of products at
easy view angles, with ample room for people's movements. Each and
every outlet covers an average plinth area which is said to be a better
space for this sort of retailing format.

Apna Bazaar provides the following facilities to consumers: -

 Quality products at reasonable prices.

 Variety of items under one roof.

 24 hours drugs outlets.

 Self-service counters

 Items of high quality tested by its quality- testing laboratory.

 Display boards and price lists at various counters to enable the

customer to make his/her choice.

 Home delivery, but this facility is only available for purchase from
branches.

 Discount sales periodically on various items

The store was started keeping in mind the lower middle class section of
the society. But gradually it has moved up the consumer ladder with the
inclusion of the middle class as its target consumer. Now slowly it is
drawing the upper class towards it. It now caters to almost all the
segments of the society depending on the location. In order to attract the
upper class & to combat growing competition in the retail industry it is
making changes in its product-mix.
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The members of Apna Bazaar enjoy the following benefits:-

 Dividend on shares at 12% to individuals, society and government.

 Purchase rebate on share amount 10% each year.

 Attractive rate of interest up to 9% on fixed deposit by the

members.

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 History
In 1948 it started with The Naigaon Grahak Sahakari Mandal Limited,
which became Mumbai Kamgar in 1958-59 after other consumer co. op.
society merged into it. In 1962-63 the organization became Madhyavarti
Grahak Sahakari Mandal.

On 29th March, 1968, the organization stated the nation’s first

departmental store on the mill worker dominated areas like Naigaon
under the name of APNA BAZAR. In short time Mumbai Kamgar brand
APNA BAZAR grew popular all over Mumbai and has never looked
back since. After successfully establishing a wide network of branches
all over Mumbai, new branches were opened along the Konkan stretch
following demand. Further franchisees were encouraged livelihood
opportunity to many entrepreneurs.

The founders of Apna Bazaar were freedom fighters and textile mill
workers. They came up with the concept of forming a cooperative
society because of the following reasons:

 Due to shortage of necessities during post – independence period

(1948 onwards)

 Shortage due to World War II (1939 – 1945)

 The Indo – China and the Indo – Pak wars

 To increase the standard of living of the common man

 To sell products of good quality at less than MRP

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Initially, 77 mill workers came together to from Apna Bazaar with an
initial capital investment of Rs. 5000 /-. The NCDC provided finance to
Apna Bazaar only at that particular time but nowadays it is not providing
them with any help.

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 Role
Apna bazaar plays a vital role by market intervention during the
shortages of essential commodities. The distribution of these items is
taken up by the Apna Bazaar at a loss to fulfill its social commitments.
At times of need, Apna Bazaar has diverted its manpower and resources,
even at the cost of its own commercial interest, for the public good.

Objectives of Apna Bazaar:-

 To undertake wholesale and retail distribution of consumer goods

and essential commodities; and to establish department stores;

 To foster the growth products and new manufacturing units

through market support and management advice

 To lower distribution costs and to introduce fair and better trading

practices such as fixed prices etc; and

 Eradication of malpractices of traders black marketing, artificial

scarcity, cheating in measurements, adulteration, etc

 Necessity of time – public distribution of essential commodities in

rural and urban areas

 Elimination of middlemen

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 Purpose Of Establishment
There was an industrial lock –out as a result of which many textile
workers became unemployed. In order to help these workers and to
provide them with employment Mumbai Kamgar Madhyavarti Grahak
Sahakari Sanstha Limited came into existence. They started a co-
operative under the brand name “Apna Bazaar”.

Apna Bazaar strives to provide the best quality goods to their customers
at the most reasonable prices. The following is a policy statement put up
at all the Apna Bazaar stores:

“Let Us All Strive For Profits”

P – Productivity and Efficiency

R – Readiness to Change

O – Optimum Utilization of Resources

F – Fairness to all concerned

I – Income, Innovation, Industriousness

T – Team Work

S – Service Oriented Approach

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 Outlets
Today, Apna Bazaar has it’s outlets in Mumbai, Konkan and Goa. In
Mumbai it has 68 outlets, 11 outlets in Konkan and 1 in Goa. Of these
there are:-

Departmental 8
Stores
Super Markets 7
Food Stores 24
Medical Stores 4
Franchise Stores 37

Apna Bazaar sells an immense variety of items through its various

departments/retail outlets. It includes all possible items ranging from
furniture, household items, footwear, and stationery to electronic items,
watches and medical equipments etc.

Location:

The location for the store is selected taking in consideration the

residential population in the area, the standard of living of the people,
the amount of business the other shops are doing and also future
development that are likely to take place in that area in future.

Area Covered:

Apna Bazaar has 80 outlets in Mumbai, Thane and the neighbouring

Konkan region. It has recently opened its first shop outside the state in
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Goa. However the density of Apna Bazaar is high in Naigoan and
Chembur.
Space Required:

The minimum requirement of area for setting up Apna Bazaar is 1000

sq. feet. The biggest store is at Vashi, which is spread across 27000 sq.
feet.

Store Layout:

Layout of shop Apna Bazaar does not have any specific layout of shop.
But in most of outlet the 1st division you would come out is Vegetable,
Fruit, Medical product, food grains, and FMCG product. The only thing
that is kept under consideration is that Heavy Product like heavy
quantities of sugar, wheat, and oil are near cash counter for convenience
of customer. In case of display they see to it that display at entrance is
very colourful & attractive. Hence they display cosmetics & FMCG
product. Besides product, which is new to the market, are also displayed
to grab attention of consumer

Product Display:

The brands are displayed in a very attractive manner .The decision to

place a Brand on a particular shall depends upon the Market share
enjoyed by the company /Brand. Usually there are 5 Shelves. Out of
which 2nd, 3rd & 4th shelves are most important ones on which the
brand with high market share or high brand equity are placed. These
products are always in demand by the customers.

Footfalls:

In big stores, like the departmental store at Andheri, there are 2000 to
3000 footfalls in a day (on weekdays) & on weekends there are around
3000 to 3500 footfalls. In small outlets there are around 100 footfalls on

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regular days. On weekends there are 200 to 250 footfalls. The footfalls
are more especially on Sunday.

The footfalls are more in evening between 6.30pm. & 8.30pm .Whereas
the footfalls are comparatively low during the afternoon slot of 1.30 -
3.30 pm. keeping this in mind stores are closed down during this time. In
this time the staff are rearrange the merchandise in the store.

Shoplifting:

Apna Bazaar does fall the problem of shoplifting .However the

percentage of shoplifting, theft is low because of presence of watchman
and staff. If there is sale of Rs. 100 only ½ % is lost due to shoplifting.
So the percentage of shoplifting is just 0.5%.

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 Registration

State level:

Apna Bazaar has to obtain permission from the Directorate of Marketing

of the Government of Maharashtra.

District level:

Apna Bazaar has to obtain permission from the District Deputy Registrar
(DDR).
Apna Bazaar has to register with the Cooperative Commissioner
(Registrar of Societies) under the Cooperative Societies Act, 1960.

Elections
Elections are held every 5 years for the post of the Chairman and the
Board of Directors (BOD) in the presence of the District Deputy
Registrar. The shareholders elect the BOD who elects the Chairman who
elects the members. The BOD and the Chairman are the policy makers
of the society.

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 Franchise
Apna bazaar has 37 franchise stores spread across Mumbai and a few
regions in the Konkan. In the franchise store the board of Apna Bazaar is
put up and 70% of its goods (food grains, pulses etc.) are supplied by
Apna bazaar. Besides Apna Bazaar send their employees to train the
franchisee.

The criteria for becoming the franchisee of Apna Bazaar are:-

 The financial background of the individual

 The area in which he is planning to open the store i.e. the location,
population, standard of living etc

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Organizational Structure
General Manager

Deputy General
Manager

9 Assistant General
Managers

Department Store
Manager

Branch Manager

Supervisors

Staff

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 Departments
Purchase Department:

Apna Bazaar buys its products from reputed suppliers. They insist on
quality products, as it is of utmost importance to them and in no case do
they compromise on Quality. In case, any consignment is found to have
bad quality, the whole consignment is returned back to the supplier.

Apna Bazaar also acts as a launch pad for new products. They buy new
products on a consignment / approval basis. This is because, if the newly
launched product does not appeal to the customers, they can send the
product back to the company. Thus, the company can test – launch their
product before it is actually launched.

The procedure for purchase is as follows:-

Agricultural products, Food grains etc.:

Masalas, sugar, dals, coconuts etc. are bought from the states of Gujarat,
Andhra Pradesh, Madhya Pradesh, and Kerala etc. These products are
sent to the Agricultural Produce Marketing Committee (APMC) market
located at various places in Maharashtra.

The sales turnover for last year for these products was Rs. 20 crore.

Products of daily use:-

Products like soaps, oil, salt cosmetics etc. are purchased directly from
companies who have their sales persons going to Apna Bazaar everyday
and taking their requirements. Certain common products are brought in
bulk, wherein the Apna Bazaar branches send the indent of their
requirement to the Head Office in Naigaon. These products are collected
in the Spring Mill Warehouse of Apna Bazaar. They are then sent to the

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department store warehouse, where they are unpacked, repacked and
arranged in the respective sections for sale.

Stock – Taking:

Stock – taking is done quarterly, half yearly, three quarterly and yearly.
During the stocktaking, they find out, which product is moving (selling
fast) and which is not. The FSN (Fast moving, slow moving, non-
moving) Analysis is done periodically to know the excess or shortage of
a particular product. If the product is fast moving or slow moving, it is
kept in the store but if it is non-moving, it is not kept.

Sales:

Apna bazaar has a daily turnover of about Rs. 35 lakhs. Sales are done
on a First In – First Out basis (FIFO). Thus, the purchasing policy of
Apna Bazaar is to buy goods in bulk quantity. Due to this, they get large
discounts from their suppliers. This enables them to keep a low – profit
margin and thus all the commodities are sold at less than MRP. This is
the unique selling preposition of Apna Bazaar.

The annual sales turnover of Apna Bazaar is of Rs. 130 crore. The sales
of Apna Bazaar are mainly on cash basis. The customer will get a bill
even for a product that is extremely low priced. 99% sales are on cash
basis. They have recently introduced credit card systems for the benefit
of customers, which account for the remaining 1% of the sales.

In the case of medicines, there is an overall discount of 8% to the

customer. Life – saving drugs (insulin for diabetes) are also provided
free of cost to senior citizens.

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Finance:

As profit is not the main objective of Apna Bazaar, the overall profit
margin on commodities is low. The face value of Apna Bazaar’s share is
Rs. 100. There are about 15,000 shareholders. The profit left is divided
among the shareholders by way of dividend (nearly 20%). A very less
amount is kept for reserve funds and investment. There are less or nearly
no sources of funds. Therefore, they cannot raise capital as private
companies. Thus they cannot earn interest, and hence cannot invest
more. Thus, there is a viscous circle of non-availability of funds where
due to no investment; no further generation of funds is possible.

The Mumbai District Central Cooperative Bank is the apex bank

providing finance to Apna Bazaar along with Bank of Maharashtra.

If they want to open a new branch, they take land on rent / lease. They
cannot afford to buy land or building, but have to required manpower
and management expertise to set up a new branch.

Auditing is done on a yearly basis by internal auditors and by the

Auditors coming from the Department of Cooperatives of the
Government of Maharashtra.

Marketing:

Apna Bazaar does not advertise. They feel that they are in business
because of their brand name and goodwill. The word of mouth of the
customer speaks for them. However, they have calendars printed every
year, which are sent to their shareholders. The companies from where
they buy their goods, place advertisements in the calendar. Hence, not
much amount is spent on marketing.

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Personnel/Human Resource:

Apna Bazaar employs a total of about 1200 employees all over

Maharashtra. The Officers agree they pay low wages to their employees
but that is because Apna Bazaar is a non – profit making organisation.
The wages paid are not below the minimum amount as specified in the
Minimum Wages Act of the Government of Maharashtra.

Promotion is done on the basis of merit. Transfers and promotions are

done yearly or bi - yearly.

Apna Bazaar gives periodical training for newcomers and existing

employees in the fields of Principles and History of Cooperatives,
History and reputation of Apna Bazaar, Accounts, How to deal with new
customers etc. The Ashok Mehta Institute at Vashi gives the required
training to the employees.

Apna Bazaar expects its employees to be faithful to the organisation. If

any employee is caught doing an illegal activity on the premises, he is
removed. Thus various schemes are offered to the employees. Employee
State Insurance, Public Provident Fund, Gratuity for Employee Bonus is
some of the schemes offered.

Inventory:

 Sources

The F.M.C.G. products are directly from the company whereas

food grains are purchased from a market at Thane, Vegetables &
fruits are purchased from RadhaKrishna Foodland, Dry fruits are
purchased from market in Vashi.

 Valuation of stock
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 The physical method used for valuation of stock. The stock is
valued on FIFO basis i.e. first in first out basis.

 Inventory turnover

1. Fruits, vegetables, milk (Perishables) are ordered daily.

2. Food grains, Sugar on alternate days.
3. FMCG products, biscuits, tea are ordered once a week.
4. Oil 2-3 times a week.
5. Utensils in 1 or 2 months.

 Unsold stock

The stock turnover for Items like cakes, vegetables, Fruits, milk etc
is on Daily basis.

Commodities like food grains, sugar, tea etc don’t remain unsold.
If the vegetables remain unsold on the day of purchase then they
are changed on the next day itself as the shelf life is very short, of
not more than 24 hrs. In case of items like food grains remaining
unsold they are discarded only when they deteriorate. FMCG
products if remained unsold are returned to the company after 6-8
months and the amount is adjusted against the purchase amount. In
case of clothes the inventory is changed after 2-3 months.

 Shortage of inventory

APNA BAZAAR is never short of inventory of branded products.

But in case of unbranded products like Masalas, pickles etc if the
inventory is short then nothing can be done on the spot.

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Trade Discounts:

The purchases are made in bulk and the discounts received from the
suppliers are passed on to the consumers in various forms. Usually the
benefits are passed on the customers in the form of reduced Prices on
almost all the commodities a discount of 5% on MRP is given. Other
than that if the purchases exceeds Rs.3000/- in 3 months then the
consumers are given 1% rebate i.e. they can take home an article
equivalent to that amount absolutely free of cost. Other than that
consumers are given Bonus points on the purchases. Besides if the
purchases exceeds Rs. 500/- at a time than they are given a gift on the
spot.

Consumer Loyalty:

It has a Consumer base of 12 lakhs. Over the period of 56 years Apna

Bazaar has developed a strong brand image in the mind of the
consumers. It enjoys strong consumer loyalty. There are just 4%-5%
consumers who shift over to other retail stores.
Mode Of Payment:

In Apna Bazaar the mode of payment is Cash, Credit card, Debit card,
Ticket restaurant, and Sodexho pass coupon. No individual credit is
given. However Apna Bazaar also supplies commodities to govt.
Institutes, Hospital etc. They supply food grains, Grocery etc. In this
case they give a credit of month.

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 U.S.P
 Pure quality commodity

 Quantity is accurate

 Surety of no duplication

 All prices below MRP including medical product

 Guarantee on each product

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 Sources Of Income
Retailing is their core activity and a major part of their income come
from the various retail outlets.

They supply commodities like Dal, Pulses, Food grains, Cereals to Govt.
Institutions, Hospitals for their Canteens. A 30 Days credit is given to
them.

They also earn income from the company racks that they display in their
outlets. These racks contain the products of the particular company and
the in turn pays Apna Bazaar for displaying these racks. For e.g.:-
Maggie, Colgate, Pepsodent, Vicks, Nescafe etc.

They provide space to companies e.g. MEPL (Electronic goods) in order

to display and sell their goods by charging rent for space provided.

They have 37 Franchise outlets, which act as a source of income for

Apna Bazaar as Apna Bazaar supplies 70% of goods.

Provide place to banks for opening ATM center by charging rent since
almost all the outlets are owned by Apna Bazaar.

MetLife India signed an agreement with Apna Bazaar Co-operative for

selling life insurance policies. Based on the agreement, Apna Bazaar Co-
operative shall become corporate agents for MetLife India and offer
MetLife India products to its huge customer base. Henceforth Apna
Bazaar will enable its customers to build financial freedom through
25 | P a g e
MetLife India products based on need analysis. Apna Bazaar will
receive a commission of 35% on Premium amount.

Exports
'Apna Bazaar ' is a 55 year old co-operative organisation with US$ 37
million annual turnover through 07 departmental stores, 06 super
markets & 65 retail outlets.

Exporters Of: - Fresh & Frozen Sea foods, Fresh Water Fish.

Apna bazaar used to export commodities like fish and grapes to Europe.
In spite of good earnings on exports they have discontinued the exports
from this year. The reason for the discontinuation was due to:-
 The goods were seasonal in nature.

 In case of grapes the Jalgoan region in which grapes where

cultivated was hit by drought, thereby by affecting the production
of grapes.

 Besides the grapes were sprayed with certain chemicals which

were banned in the European countries, thereby further affecting
the exports.

 Besides exports is not Apna Bazaar’s core activity therefore the

decision to discontinue exports was taken.

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 Tie –Ups
Oil major Hindustan Petroleum Corporation Ltd (HPCL) and Apna
Bazaar Co-operative have entered into a tie-up. Their outlet is called
APNA BAZAR –HPCL speed mart. By joining hands, Apna Bazaar and
HPCL aim to leverage their synergy for attracting consumers. HPCL
would do it by offering more services at the petrol pumps; while Apna
Bazaar would gain access to the large base of customers visiting the gas
stations of the oil giant .It has three Outlets in Mumbai at Chembur,
Dadar and Nerul.

Sister Concerns
Apna bazaar has various sister concerns. These are:-

Apna Sahakari Bank:

During the last few years the Apna Sahakari Bank has made remarkable
progress. In the 33 years of its existence, the bank has predicted an
increase in its deposits to Rs. 274 crore. For the year ended 31 st March
2000, the bank had a growth of 20.26% in its deposits.

Providing efficient service towards the customer and up gradation of

technology is of utmost importance to the bank. This has helped them to
survive in the banking sector despite the presence of stiff competition.

Ashok Mehta Institute:

Ashok Mehta Institute is located at Vashi and Vaikhunt. This institute

provides training for newcomers and existing employees of Apna Bazaar
in the fields of Principles and History of Cooperatives, History and
reputation of Apna Bazaar, Accounts, How to deal with new customers
etc. it offers other courses like D.B.M, P.G.D.B.M., D.I.T., etc. which

27 | P a g e
range from 6 months to 1 year duration. Employees and helpers attend
workshops on various subjects organized by this institute.

Others include:-

 Mumbai Kamgar Sevak Sahakari Patpedi

 Apna Bazaar Adhikari Sahakari Patpedi

Financial Analysis
In the financial year 2006-07 Apna Bazaar dept. stores, supermarkets
and other outlets total retail sales was Rs. 99 Crores and 52 lacs .It
registered an increase of Rs. 1 crore and 56 lacs as compared to previous
year.

Total Sales:

In the financial year 2006-07 the organization’s total sales amounted to

Rs. 127 crore and 36 lacs. There has been a fall of Rs. 5 crore in the total
sales compared to the previous years. This was due to loss making
outlets were closed down.

Expenditure:

Out of the total expenditure incurred by Apna Bazaar Payment to staff

constitutes to more than 40-45% in the financial year 2004-05, 2005-06,
2006-07.

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Also Interest on deposits and borrowings were around 20-25%. Apna
Bazaar borrowed money in order to set it off against the losses. These
lead to increasing interest burden and almost resulting into debt trap.

Budgeted & Actual:

The budgeted sales of Apna Bazaar for the year 06-07 were Rs, 14050(in
lacs) where as the actual for the year 06-07 were Rs. 12736(in lacs).
Also the Actual gross profits Rs.1215 (lacs) were less than the budgeted
gross profit Rs.995 (lacs). The total budgeted expenses for the year 03-
04 were Rs.1450 lacs were as the actual expenses were Rs 1331 (lacs).

There is a favourable variance between budgeted expenses and the

actual expenditure. Also the Budgeted net profit was expected to be Rs.
15 (lacs) but had to face a loss of Rs. 120(lacs). For the future Apna
Bazaar has planned to make a net profit of 15 lacs for the year 2005-06.
Measures Taken To Eridicate Losses:

Since Apna Bazaar has incurred losses of Rs. 150 lacs in the financial
year 2006-07. To eradicate these losses they have taken the following
steps:-

 They are trying to reduce the inventory turnover to two (2) days
with the help of Radha Krishna Foodland. These would reduce the
blockage of capital and interest on it.

 The concept of Shopping on wheel has been drastically cut down

due to government regulation of disallowing vehicles on road,
which are 15 years old. Another reason is that Apna Bazaar outlets
are now available in almost all areas of Mumbai.

 Apna Bazaar has discontinued the outlets, which are making losses
for many years. Outlet in Bandra was closed.

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  They are trimming the staff and there has been no new intake of
staff as of date.

 Training and Development of staff in order to improve their

efficiency and productivity

S.W.O.T. Analysis
Strengths:

 Goodwill:

Apna Bazaar has built its image over the years as a value for
money store, which supplies good quality goods at economical
price.

 Number of Outlets:

Apna Bazaar has 80 outlets spread all over Mumbai, Navi

Mumbai, Thane and the neighbouring Konkan region, Lanza
(Bombay-Goa road), among other places in Maharashtra. All these

30 | P a g e
 areas are easily accessible as public transportation is available.
Hence provides easy access to the customers.

 Team work:

Although there is no training imparted to the employees at the

outlets, there is co-ordination and understanding between them due
to which the work goes on smoothly creating a win-win situation
for both, the management and the employees.

 Modernization:

Apna Bazaar makes use of modern technology to maintain correct

supplier bills and giving accurate bills to customers giving details
of each purchase and most importantly showing him the savings he
has made while purchasing from Apna Bazaar. They also possess
total details of their sales and the percentage of sales in each
category so they know where the sales are high and where they are
lagging behind.

 Genuine Products:

The products of Apna Bazaar are genuine as they purchase it

directly from the companies. Lots of imitations of consumables
such as honey, oil, etc. are available in many stores. People get
cheated, as it is not easy to identify them.

 CRM:

Apna Bazaar organizes a customer meet for their regular customers

called MELAVDA at their anniversary to build stronger relations
with their customers. On this day, the customers are offered

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 purchase discounts which show that they have taken corrective
steps towards customer satisfaction.

Weaknesses:

 Capital:

Raising capital for expansion and improvement is also a constraint.

Apna Bazaar is bounded by the laws of consumer co-operatives
due to which they cannot raise funds from open market. There is
also limit prescribed by the consumer co-operatives for number of
shares issued by Apna Bazaar. This is a major drawback for Apna
Bazaar.

 Ageing society:

Apna Bazaar started after World War 2 when there was need of
essential commodities at lower prices. But, after liberalization
many super markets and hypermarkets have opened up due to
which there is explosion of choices. Moreover, people today have
the money to go for convenience shopping, and hence, the purpose
for opening the co-operative is defeated.

 Obstacles in recruitment:

Apna Bazaar does not have the budget to recruit skilled staff. The
employees are not well educated and hence, they are not aware of
the management practices. A qualified employee demands higher
salary, which cannot be given by Apna Bazaar due to their
constraints. Hence they cannot appoint a MBA a managerial job.

 No online retailing:

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 Apna Bazaar does not have information about its products online.
They should have their own website as it is very important in
today’s world. They could even learn about customer grievances
by the feedback.

 Price fluctuation:

Price Fluctuation is a major threat to Apna Bazaar. If the product is

bought at a higher price is has to be sold at that price only so as not
to incur losses. For example, the price of oil fluctuates a lot. So if
the price for oil is Rs. 820 for a can when it is purchased, it will be
sold at Rs 820 per can even if the price falls to Rs. 800 per can. In
this case the oil available from other shops will be cheaper.

Opportunities:

 Brand building:

Apna Bazaar can take efforts to build its’ brand image. For this
purpose, a marketing firm can he hired. This will attract more and
more people to its outlets. Also, they have upgraded their outlets.
This can be the base for attracting more customers as they will
soon have all air conditioned stores.

 Expansion:

Apna Bazaar can expand its outlets to other states. At present, they
have discovered interests from Madhya Pradesh and Delhi. The
initiation is on the anvil.

 Development in suburbs:

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 People are now moving in the suburbs; infrastructure is developing
due to which there is huge potential to attract more customers.

 Retailing boom:

Retailing today is not only about selling at the shop, but also about
surveying the market, offering choice and experience to
consumers, competitive prices and retaining consumers as well.
The establishment of supermarkets and convenience stores has
been a great effort to communicate the advantages of organized
retailing to customers.

Threats:

 Malls:

There are a large number of malls that offer discounts the

discounts offered by them are as good as those offered by Apna
Bazaar because the malls purchase in bulk and can hence afford to
give heavy discounts to the customers. The customer has an
explosion of choices and will prefer shopping at these big malls
because of the ambience. They get the complete shopping
experience at malls. Hence, malls are a major threat for Apna
Bazaar.

 Competition from other stores in terms of:-:

1. Customer Centric Approach:

Most other stores take feedback from the customers in form
of grievances, opinions and suggestions. They can find out
customer needs and ways to satisfy them.

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 2. Image:
Image of a private retailer is more modern and advanced
compared to that of Apna Bazaar. The display is also more
attractive in other super markets and hypermarkets compared
to Apna Bazaar.

 Theft / Shoplifting:

The Apna Bazaar stores are large in size. Therefore, it is difficult to keep
a check on the customers. Also the lack of any security gadgets makes it
more tedious for the staff to notice any malpractices that might be
occurring on the premises. Thus, thefts occur at least 2 – 3 times a
month. Defaulters are charged a fine of Rs. 501.

 Lack of Personal Attention:

Apna Bazaar stores a large number of commodities and has around 2500
– 3000 customers visiting it daily. Thus it is almost impossible for the
staff to give personal attention to the customers.

Future Plans
 Apna Bazaar plans to open outlets in the new housing colonies
coming up in the interior suburbs like Kandivili and Thane.

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 Increasing the distribution reach is a strategy to counter
competition the co-operative plans to increase its outlets from 80 at
present to about 100 by next year. This would comprise
department stores, super markets, franchisee outlets and medical
stores, both in Maharashtra as well as rest of the country.

 Apart from that, it has money transfer facility under an

arrangement with Western Union money transfer.

 On the tie-up with HPCL for having Apna Bazaar outlets at the
petrol pumps, so far three HPCL pumps have Apna Bazaar outlets
and the results are still being analyzed.

 Apna Bazaar Co-operative has embarked on a restructuring

exercise and has appointed Darashaw and Company as strategic
consultants. The restructuring involves exiting certain business
while adding more services, to be provided under its umbrella. The
restructuring plan involves exiting out of businesses like export of
fish and grapes, milk processing, manufacturing bakery products
like biscuits and also pickles papads and spices.

 Online booking for provisions through the Net and a centralized

system to control inventory are also on the anvil. To begin with the
co-operative plans to have a dedicated call center for customers to
phone in their requirements, which would then be delivered from
the nearest Apna Bazaar outlet. An online presence, on the lines of
Sangam Direct-the online initiative of HLL-is under consideration.

 To ensure minimum inventory and maximum rotation, the co-

operative is planning to centralize its supply chain management. It
is talking to FMCG majors like Tata, Nestle, HLL and P&G to
ensure rotation without building up much inventory. While the
super markets would be serviced directly by the companies, the
requirements of franchisee outlets would be met by Apna Bazaar to
ensure better co-ordination.
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  Apna Bazaar operates the Akshay Labh Yojana scheme wherein
the customers can deposit Rs. 10,000 at any point of time in the
year and get items worth Rs. 100 per month free. They also have
term deposit schemes.

 Apna Bazaar has also entered into an eCRM tie-up with Venture
Infotek, the e-infrastructure solutions provider, whereby Venture
Infotek provides the integrated end-to-end solutions, with the
shared infrastructure and payment-as-you-use payment
mechanism, without investment in infrastructure.

 The first thing on Apna Bazaar’s plans is to work on all 365 days
like other big players.

 Upgrading the skills of their manpower and create vehicle parking

facility are also in their agenda. They plan to have a tie-up with
Citibank on co-branding. Regarding credit card, they are on the
verge of signing a MoU with SBI. As visual merchandising, a new
way for presenting the products will be introduced.

 The National Consumers Co-Operative Federation has approached

Apna Bazaar and enquired about the possibility of running
department stores under the brand name Apna Bazaar in Delhi and
Madhya Pradesh.

 Apna Bazaar is planning to open another outlet in Goa as they have

got a good response from the supermarket.

Recommendations
 Government interference has had a major effect on the democratic
setup of Apna Bazaar. Therefore, lesser dependence on government
should be opted for.
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 Government should help stores like Apna Bazaar with credit at
cheaper interest rates.

 Apna Bazaar should improve their capital assets by enrolling more

members and also introduce more product varieties.

 In the coming years, the economy will be dominated by the retailing

sector. Times are changing, organizations are changing. Changing
according to times is inevitable. Apna Bazaar has to change its
traditional viewpoints. It should adopt new techniques and accept
change wholeheartedly. Bringing qualitative changes in their skill and
especially mindset will help it to survive competition.

 Apna Bazaar can open one outlet offering all the products it sells in
the 80 outlets so that people get all products offered by Apna Bazaar
under one roof.

 Though Apna Bazaar offers self-service, the staff needs to be more

customer friendly, and interact with the customers. There is also a
need for professionalism.

Conclusion
Consumer Cooperatives constitute the institutional framework in the
distributive trade for providing essential consumer articles to the
vulnerable section of society at reasonable prices. As a National policy,
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consumer cooperatives have been developed as self-reliant grass-root
democratic institutions owned, managed and controlled by their
members for the protection of interests of consumers.

The presence of consumer cooperatives creates an impact in the market

especially to protect the interests of consumers by way of keeping
intermediaries away from the distribution channel. It plays a vital role
from the distribution of consumer goods, particularly essential consumer
goods at fair prices to rural areas, including remote, inaccessible and
hilly terrains.

Consumer Cooperatives have received a good deal of support from the

Govt. as they help check malpractices in times of crises arising from
shortages by making goods available and thereby checking undue rise in
their prices. These apart, Consumer cooperatives not only provides
potential employment opportunities to the young, educate and literate
persons but also adding income to the Center and States/UTs in the form
of Income Tax, Sales Tax, other prevailing local Taxes, etc.

GROUP MEMBERS

Name Roll No. (Old) Roll No. (New)

Minay Mehta
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 Sneha Moitra
Snigdha Moitra
Sameera Pingulkar
Hamida Rupani
Zubair Siddique
Akshay Vasan
Shweta Dungrani

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