The Dabbawallas of Mumbai

Amit Rangnekar NMIMS PhD 2004

Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006
 Quotes
• “People study business books and then
practice. We practiced first and have now
become case studies” R Medge President
• “ It’s a model of managerial &
organisational simplicity” CK Prahalad

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Belief- WORK IS WORSHIP
Credo- We deliver come what may, the
customer shall never go hungry

Tiffin crate weight:

75-80 kgs.

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Efficiency
• Zero % fuel
• Zero % investment
• Zero % modern technology
• Zero % Disputes
• 100 % Customer Satisfaction
• Average education levels- 8th Standard
• 50% illiterates

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Operations
• Employee Strength: 5000
• Number of Tiffin's: 200,000 Tiffins
= 400,000 transactions every day
= 400,000*25 days*12 months= 120,000,000
(120 million or 12 crore transactions per year)
• Time taken: 8 hrs, wartime is 3 hours
• Success rate: 100%
• Delivery: On time, every time

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Results
• Error Rate : 1 in 16 million transactions
• Six Sigma performance (99.999999)
• Technological Backup : Nil.
• Cost of service - Rs. 280-330/ month
($6-8 £3-4, €5-6 per month)
• Standard price for all (Weight, Distance, Space)
• “No strike” for 115 years, a record, as each one is
a share holder

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 The Need
• Late 19th century
• Work driven migrations to Mumbai
• No families
• No canteens / fastfoods
• Early work hours, no time to prepare food
• Different communities, different tastes
• Satisfied only by home cooked food

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 The Seed
• Mahadev Bache, identified the need gap
and pioneered lunch delivery in Mumbai
• Recruited youth from his native village
• Youth with insufficient agri-incomes to
feed large families
• Youth with no skills or education

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 The Rising
• Operations began in 1890
• 20 dabbawallas
• Expand to 100 dabbawallas
• Charged Rs 2 / month, target mill workers
• Most Dabbawallas from Western
Maharashtra

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 The Boom
• 1950s & 1960s
• Industrial boom
• Proliferation of offices in South Mumbai
• Preference for home food
• 200,000 Dabbas delivered per day

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Getting Organised
• Nutan Mumbai Tiffin Box Suppliers Charity
Association (now Trust) formed in 1954
• Offices at Grant Road, Dadar, Chembur,
Ghatkopar, Mulund, Andheri
• Western Harbour & Central Lines covered

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 1970s
• Boom time
• Dabbas in 3 shifts in many mill areas
• But
• Bank nationalisation changed working
hours
• Rail strike ensured disruption in services

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 1980s
• Textile Mills start closing
• Majority of the mill workers, the biggest
segment, stops availing the service
• Daily business slips to 150,000 dabbas

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 1990s +
• Gain clients who yearn home cooked food, shun
outside food
• School tiffins surge
• Daily business again reaches 200,000 dabbas
But,
• Offices start moving to the suburbs
• Industries start moving outside Mumbai
• Most mills closed

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006
 Key players
• One group has 20-25 dabbawallas
• Each dabbawalla picks up 30-35 dabbas, travels
between 2-10 km by bus / cycle / on foot to deliver
• 1970s &1980s, 40-45 dabbas were picked up but
plastic tiffins being wider, occupy more space
• Each group led by a Mukadam, who controls and
coordinates the activities
• Group areas not demarcated, 3-4 groups operate in
the same area
• Seamless co-ordination of activities of collection,
distribution and delivery through relays
• Each change is called a ‘badli’
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006
 ORGANISATIONAL STRUCTURE

13 Decision Makers

PRESIDENT
VICE PRESIDENT
GENERAL
SECRETARY
TREASURER
DIRECTORS ( 9 )
MUKADAM (800)
MEMBERS ( 5000 )

Key duties- Conflict resolution, administration, welfare

Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006
60%
30%

10%

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
Wartime: Emergency measures being taken to ensure delivery

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Prime-time

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006
 Origin station Destination station

12 coach train,
12 coach train, 4,000
4,000 commuters Sorting at Churchgate
8,000 disputes,
commuters, Butdisputes,
8,000 no excuses,
no
Duty first duty first Amit Rangnekar, NMIMS-PhD-2004
excuses,
Copenhagen, Sep2006
 Sorting
• Sorted by destination
• 30-35 dabbas packed in wooden crates
• Crates loaded in packed train luggage
compartments
• Building wise / lane wise sorting at
destination stations

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Distribution
• 70% deliveries at
CST & Churchgate
• Frantic activity at noon
• Sprint / cycle to deliver
• High volume areas like
Nariman Point, Fort ,
CST have dedicated crates,
carrying 150 tiffins, pushed
by 3-4 elderly
dabbawallas

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Reverse in top gear
• 2pm to 6pm
• Collect the empty dabbas
• Assembling and sorting
• Delivered back to where they came from
by evening

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
• The return journey is
more pleasant due to
a lighter load and the
dabbawallas indulge
in fellowship, light
hearted banter and
catch up with their
accounts

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 What’s Unique
• Different dabbawallas pick up, sort and deliver
• Co-ordination is seamless
• The person who delivers does not know the
origin address and vice-versa
• Nowhere on the dabba is the owner’s name or
address put, but there are no delivery errors
• Errors do not occur due to mistakes by the
dabbawallas, but due to pilferage in trains or
sorting areas
• No ‘Parking’ issues although such a huge load is
processed

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006
 Binding Agents
• All are stakeholders
• Many are relations
• Similar customs and traditions
• Faith in Lord Vithoba of Pandharpur
• “We cannot deliver only if the trains in Mumbai
do not run, but in that case, no one can reach
office either”
Gangaram Talekar- General Secretary

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Code of conduct
• Rs 25- Not carrying ID card
• Rs 25- Not wearing white cap
• Rs 100- Smoking on duty
• Rs 500- Drinking on duty
• Rs 1000- Leave without intimation, sacked
if repeated in 2-3 instances

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Financials
• A dabbawalla makes Rs 5500-6000 ($125, £60,
€100) per month
• Incidentals- Railway pass + crate costs+ luggage
pass + incidentals Rs 500 ($11, £6, €9) per month
• Rs 400 go to the parent association
• Net monthly earnings range from Rs 4500-5000
($100, £50, €75)

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Adaptations / Innovations
• Express delivery system (pick up at 11am)
• SMS a dabba
• www.mydabbwallas.com (under construction)
• Tie-up with a group of housewives to cook & supply home-
cooked food
• Tie up with Dr Vijaya Venkat, who supplies food based on
medical ailments of the patient, after examining them

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 CSR
• Each dabbawalla donates Rs 15 per month
• The trust has set up 4 dharamshalas, schools
and temples at their native place
• Help during medical emergencies
• Family members of dabbawallas who die / are
incapacitated while in service are absorbed
into the system / compensated

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006
 Strategic Issues
• Expansion into Navi Mumbai / Panvel
• Model duplication across other cities
• Franchising in other cities
• Backward integration into catering
• Forward integration into couriers
• Networking through surrogate homes for single
persons
• Foray into Call centers /BPO/ ITES / Retail with
dual delivery shifts
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006
 Challenges
• Offices- Shift to central / suburban/ Navi Mumbai
• Proliferation of Local eateries, tendency to eat out
• Inhouse cafes / canteens/ lunch coupons
• Second generation dabbawallas residing in Mumbai ,
not joining the profession
• Morning tiffins difficult as working women increase
• Attrition rates high
• Average age of the dabbawallas is 52 years

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Key drivers
• Committed workforce
• Stakeholders faith
• Teamwork
• Operational flexibility

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Sustainable Advantage
• Mumbai’s efficient rail network
• Simplicity and scalability of operations
• Employees as shareholders
• Economy pricing deters corporates

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Opportunities
• Demand for home cooked / fresh food would rise
due to increased awareness
• Offices shifting to areas connected by rail- BKC,
Lower Parel, Navi Mumbai, Panvel, Western
suburbs
• Retail / Call centers/ ITES / BPO
• Increasing petrol prices
• Metro rail in the offing

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006
Opportunities, Challenges & Options

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
Are the dabbawallas going to be extinct?
“How can it be ?
Sure, some clients
may move away, but
children will continue
to go to school and
people to offices.
As long as people feel
the desire for home
cooked food,
the dabbawallas would
always deliver”
• R Medge, President
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006
With their most famous student

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
• Issues?
• Problems?
• Symptoms?
• Analysis?
• Diagnosis?
• Synthesis

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Strategy Square
Conditions Consumer

Corporation
Competition (Dabbawallas) Costs
 SWOT
Strengths Weaknesses

Opportunities Threats

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
Porter’s 5 Forces- Industry Attractiveness

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Gap Analysis
Desired Goal

t io n
i f ica
e r s
Div Strategic
at i ve
e g r Planning
In t
Gap
e
Intensiv
Sales

Current Portfolio

Period
 Strategy Map
ITES
Courier
Customer
BPO

Delivery
Retail

Transportation

Collection

Catering
Strategic Options

Ally

Buy Diversify

Build
 Potential

Served Unserved

Unarticulated
Needs

Articulated Dabbawall
Needs as
Ansoff’s Model

Amit Rangnekar, NMIMS-PhD-2004

Copenhagen, Sep2006
 Capture value?

erm
T
n g
Lo
erm
dT
Mi

t Term
Shor
Capture
Value Instant