The Apna Bazar Cooperative From Single P

International Journal of
Rural Management http://irm.sagepub.com/
The Apna Bazar Cooperative : From Single PDS Outlet to a Retail Chain
−−A Case Study*
Rajinder Chaudhary
International Journal of Rural Management 2007 3: 287
DOI: 10.1177/097300520800300206
The online version of this article can be found at:

http://irm.sagepub.com/content/3/2/287
Published by:
http://www.sagepublications.com
On behalf of:
Institute of Rural Management
Additional services and information for International Journal of Rural Management can be found
at:
Email Alerts: http://irm.sagepub.com/cgi/alerts
Subscriptions: http://irm.sagepub.com/subscriptions
Reprints: http://www.sagepub.com/journalsReprints.nav
Permissions: http://www.sagepub.com/journalsPermissions.nav
Citations: http://irm.sagepub.com/content/3/2/287.refs.html
Downloaded from irm.sagepub.com at MAHARSHI DAYANAND UNIV on March 1, 2012
>> Version of Record - Dec 12, 2008
What is This?

International Journal of Rural Management, 3(2), 2007: 287–301
SAGE Publications z Los Angeles/London/New Delhi/Singapore
DOI: 10.1177/097300520800300206
THE APNA BAZAR COOPERATIVE: FROM SINGLE PDS

OUTLET TO A RETAIL CHAIN—A CASE STUDY*
Rajinder Chaudhary
When debate on economic policy in the Third World countries like India is
confined to ways of privatization and its critique, it is useful to document and
highlight other forms of economic organization. Notionally, a cooperative is an
alternate form of economic organization, but it is not discussed frequently in
public debate or economic theory texts. One reason for this could be that at
least in India, largely, cooperatives have a public image of either being a sham
or being government-managed. The present study is part of an endeavour to
critically examine this image and has led to documentation of some self-reliant,
real cooperatives of long standing in a variety of settings. This is a case study
of a 58 year old, self-reliant and member controlled consumer cooperative.
Besides checking on its cooperative and self-reliant character, its structure and
processes have also been documented in some detail to aid in its replication.
This process has led to a more critical reading.
INTRODUCTION
For years, ‘Super Bazar’ and ‘Kendriya Bhandar’1 have dominated the scene of
consumer cooperatives in India but these have a public image of ‘government
run cooperatives’.2 The above two cooperatives are not exceptions. In reports
on the state of cooperatives in different states of India, it is common to find that
almost all reports are presented by government offices (ICA 1995, 1996). On
the other hand, a large number of private ventures masquerade as cooperatives
to take the advantage of tax laws. As a result, in India, cooperatives do not have
the public image of being an alternate form of economic organization. In this
scenario, the Mumbai Kamgar Madhyawarti Grahak Sahakari Sanstha Maryadit,3
which in 1948 started with a single ration shop in Naigaon, a working class mill

288 RAJINDER CHAUDHARY
area of Mumbai, has now grown to a retail chain and provides an interesting
case study. It is neither a government managed cooperative nor a private venture
masquerading as cooperative. Its brand name, Apna Bazar,4 is better known and
we will be using it or just ‘Bazar’ to refer to this cooperative. In 1998–1999 Apna
Bazar had achieved a turnover of Rs 1,473.3 million. Thereafter, turnover declined
and in 2003–2004, it was Rs 1,273.6 million. The entry of big corporate houses
into retailing and potential entry of multinational companies (MNCs) present
new challenges for Apna Bazar; but its survival and growth over 58 years makes
it an interesting case study.5 It has not been studied by academics and the few
journalistic articles have been in Marathi.6
In this era, when debate on economic policy in Third World countries like
India is confined to ways of privatization and its critique, it is useful to document
alternate forms of ownership and management in these countries. This study is
part of such an endeavour.7 Besides checking on the cooperative and self-reliant
character of Apna Bazar, an attempt has also been made to document its structure
and processes so as to provide initial input to those who may be interested in its
replication. Therefore, it has certain operational details that may not interest a
theorist, but this process has led to a more critical reading.
Data sources
Basic information has been collected from various Annual and other Reports, other
in-house publications of the Bazar and interviews with various functionaries
during two field visits of 10 days each in April 2004 and February 2005. The
author had free access to various employees and could even join, after certain
items had been dealt with, one weekly meeting of the top management. Besides,
the author visited six outlets, attended two branch–level monthly meetings and
one meeting of the Board of Directors (BOD). Audit report for 2003–2004 along
with Statutory Report, Part B, giving detailed summary comments and minutes
of the Annual General Body meeting of a few years, were also examined. To cross
check and verify certain crucial aspects, interviews were also conducted with
various stakeholders, including Trade Union leaders and customers.
Origin
Faced with shortages and black marketing of early post-independent period and
enthused by the optimism of that era, under the influence of Socialist leaders,
an idea was floated in February 1948 to cooperatively manage an outlet of public
distribution system (PDS).8 By May 1948 ‘Naigaon Kamgar Grahak Sahkari Mandal
Limited’ was formed in a working class area of Mumbai and its first outlet was
INTERNATIONAL JOURNAL OF RURAL MANAGEMENT, 3(2), 2007: 287–301

The Apna Bazar Cooperative 289
inaugurated on 26 September 1948. It had 77 members and capital of Rs 5,000.

In the very first year it earned a net profit of more than Rs 5,500 and enrolled
1,105 members. In 1959, as it extended its area of operation, ‘Mumbai’ replaced
‘Naigaon’ in the name. By 1968, it had opened its first Department Store, and
since 2003, after registration under Multi-State Cooperative Societies Act 2002,
it has extended its operations to Goa and become a multi-state cooperative.
With the opening of its first department store at Dadar in 1968, Apna Bazar had
arrived and ‘started counting sales in millions, rather than thousands’, as one
old timer put it.9
Structure
Report for the year 1990–1991 shows that the Maharashtra State government had
contributed Rs 5.1 million as share capital and another Rs 3.6 million as loan for
various projects. However, since 2000–2001, the government does not hold any
shares and there are no outstanding government loans. At the end of 2003–2004,
about 99 per cent of the total share capital of Rs.16.33 million was contributed by
individual shareholders (who numbered 15,04510); primary cooperative societies
and other bodies hold rest of the shares.11 Each member is expected to buy at least
10 shares of Rs 100 each. In addition to the dividend, members also get some
bonus and discount coupons proportionate to their share holding, annually.12
Requirement of working capital is partly met through mobilization of interest-
bearing deposits from members/nominal members under various schemes. At
the end of 2003–2004, it had mobilized deposits worth Rs 255.4 million.
A Board of Directors (BOD) is elected by the General Body for a term of five
years. It has 20 elected members, with provision of co-option of one nominee
from employees and one expert in the field of cooperatives. Usually, the election
of BOD is unanimous. An informal committee of elders, mainly consisting of
ex-office bearers, renowned socialist leaders and Rashtriya Sewa Dal13 activists,
vets the names and nominates the panel. This body of elders also keeps a general
watch over the affairs of the Bazar and acts as grievance redressal body in case
of serious disputes. A Chief Executive Officer (CEO) is appointed by the BOD
and is an ex-officio member of the BOD. The BOD forms various committees to
help in supervision and management. These are: Control Committee, Price/Rate
Verification Committee, Women Committee and Health Committee at central
level, and branch committees.14
While regular clerical staff leaves the Central Office by 6 pm, it comes alive
with part-time volunteer members, as many of them come here straight after their
own offices close.15 Various committees have about 300 members who actively
participate in the management in purely honorary capacity.16 Though not required

by the rules, all branch committee Presidents and Secretaries are permanent
invitees to the monthly meeting of the BOD. Office bearers of the BOD, for
example, the President, Vice-President and four Secretaries, have a weekly meeting
with the key managers.17 Meeting of the branch committees is held every month.
Branch- and various sub-committees keep a watch as well as help and advise the
managers. All branch committee members and branch managers and other senior
employees have a joint review meeting twice a year.18
Full-time employees handle the day-to-day operations. Though at one time it
had more than 1,450 employees, in April 2004, Apna Bazar had 876 employees.
While the present CEO is a professionally trained manager, most of the other
managers have moved up from the shop floor. Eight to 10 branches are put under
the charge of a Zonal Manager, who also takes charge of the branches in the ab-
sence of branch managers. While regular employees of the Bazar handle most of
the operations, of late, housekeeping services have been outsourced.19
Functioning
In February 2005, Apna Bazar had 67 outlets, eight Department Stores, seven
Super markets, 24 food stores, four exclusive medical stores, and 24 active franchise
shops. Most of the outlets are open 365-days. Apna Bazar not only sells a wide
variety of daily use items, bigger stores even stock consumer durables like tele-
vision, refrigerators, etc., and run a cooking gas agency. Some of the food stores
and smaller branches also function as PDS outlets. Actually, the first outlet of
Apna Bazar was a PDS outlet and in its initial phase PDS operations were a major
activity. But after changes in the PDS policy at the national level in the 1990s,
now PDS operations have become an insignificant part of its operations and are
a source of loss on account of high overheads and declining revenue.20
Certain counters, for products like garments—where a large variety of prod-
ucts need to be stocked—are contracted out. In case of such counters, sales are
usually on Apna Bazar bills. So these sales are added to the sales figures of the
Bazar.21 Certain items like fresh vegetables are marketed on behalf of other sup-
pliers on commission basis. The Bazar also undertakes institutional supplies to
various government and corporate bodies. Such contracts are procured through
competitive bidding. However, of late these operations have been drastically
reduced as the Bazar faced problems in getting timely payments from the gov-
ernment departments.
All purchases are centralized and managed through two wings. One wing
procures and distributes Fast Moving Consumer Goods (FMCG) and other
manufactured products. After the central purchase wing has negotiated the terms,

branches may also take delivery directly from the distributors. However, all ac-
counting and billing is centralized. Another warehouse, located in the wholesale
Agricultural Produce Marketing Committee (APMC) market of Navi Mumbai,
handles procurement of agricultural produce. Agricultural produce is also directly
procured from the hinterland. Agricultural produce is procured through two or
three reliable whole sellers, with whom Apna Bazar has been dealing since long.
These whole sellers in turn operate through agents. Different purchase officers
handle different product categories as per the laid out policy and also fix sale price
as per policy on margins.22 It was pointed out by the CEO and the Chief Purchase
Officers that the purchase mechanism here is similar to the one followed in any
big retail store chain, which is, to basically depend on the integrity of the person
making purchases, keep a watchful eye over rates in the market and hope for the
best.23 Besides the management, a Price Verification Committee also keeps a watch
over purchase and sale prices, in the branches as well as in the market.
The Central Office maintains regular vigil over all the operations. Not only
are all purchases and fixation of sale prices centralized, each outlet also sends
daily sales report the same day. Daily stock position and daily cashbook record
too is reported, though after a gap of a day or two. Stock verification is done every
six months. Stock verification in all outlets is completed with the help of com-
mittee members and outsiders like students over a period of two to three days.
In case of significant shortages, monthly/random stocktaking is also undertaken
in specific branches until loopholes are plugged.24 Stocks are maintained on
value/sale price basis rather than on physical basis. That is, in stock verification,
rather than comparing stock of each item physically, total sale value of stocks is
taken into account.25 No electronic surveillance mechanism is deployed to guard
against shoplifting. Employees are assigned specific shelves and are responsible
for stocking and maintenance of these, as well as to guard against theft. Precious
items and items more amenable to shoplifting are assigned to senior and reliable
employees. If certain items are moving too fast, a watch is kept over these items.
A separate security wing also keeps vigil. Bags of employees are checked but in
general, there is no body search.
In case there are damaged goods or sale prices have to be changed for whatever
reasons, a committee undertakes such revision and makes a note in a register kept
for the purpose.26 About handling corruption of Government machinery, it was
informed that given the reputation and social standing of the organisation and
wide network of its members and sympathizers, it does not face much problem
on this account. Moreover, it seeks to meet all its statutory obligations. However,
if it is a matter of small gifts, etc., a pragmatic view is taken and such a demand
is met.

Franchise operations
Presently Apna Bazar has 33 franchise outlets, of which 24 are active. A franchisee
is provided products by the organization, at the rate at which its own outlets are
provided by its wholesale depots, and has to charge Bazar prices. However, it can
also stock products not supplied by the Bazar. Apna Bazar supplies about 50–60 per
cent of products on the shelf of franchisee,27 but it gets one per cent commission
on all sales. There is a stiff fine of Rs 5,000 on any non-billed sales.
Other activities
Besides the core activity of retailing, Apna Bazar had over a time entered into
number of other economic ventures like milk procurement and processing, spices
and pickle production, exports, etc. However, after 1999–2000 these operations
were curtailed and now all these ventures have been closed down.28 Present losses
are seen to be on account of these failed ventures. It may be noted that these ventures
were not organized as separate cooperatives but were run through employees.29
Off and on it has also tried to market the produce of other cooperatives and other
disadvantaged sections, and attempted to promote indigenous products vis-à-vis
products of MNCs, but without much success.
Apna Bazar has not confined itself to economic activities alone. It has regularly
been organizing number of other activities in keeping with its socialist orienta-
tion. A number of public lectures are organized every year. Since 1972, Sarfare,
a lecture series, is organized in memory of one of its founding fathers. It also
organizes number of other cultural activities including special ‘book promotion’
sales. For the last nine years it has been bringing out Apna Patrika, an in-house
quarterly for members that is not confined to Apna Bazar’s activities. Exhibitions
and other awareness–generating activities, particularly regarding adulteration and
identification of various varieties of food grains and spices, etc., are also organized
off and on. It has a special committee to mobilize women. Though not particularly
gender-aware, it regularly organizes number of activities like ‘healthy baby show’
and recipe contests.
Another area of intervention is health. While free testing of eyesight had started
way back in 1968, since 1972 it has been running Dadasaheb Sarfare Arogya Kendra
in its Naigaon branch. Presently, in all, three allopathic centres and three centres
of alternative medicines are being run. As doctors charge the Bazar much less
than their normal rates, expert medical services are provided at a nominal price
at these centres. This facility is available for everyone and is not confined to
members or customers alone. Free medical camps are also organized every year.

All these activities, while significant on their own account, are also indicative of
wider participation and outlook of the organization.
Labour relations
Employees have a Trade Union and one representative of the employees (an actual
employee) sits on the BOD. Relationship between the Trade Union (influenced
by the Shiv Sena, a rightwing political party) and the ‘socialist’ management
has been cordial. The last ‘industrial action’ by the Union was wearing of ‘black
badges’ way back in 1982–1983. This cordiality, it was informed, partly comes out
of pride in achievement of Marathi Manush (Marathi people), particularly from
working class background. This is because the organization basically consists of
members as well as employees belonging to Maharashtra, or more specifically to
a particular region, Konkan; hence, the success of Apna Bazar has been viewed to
be a matter of pride for the Maharashtrians. The Shiv Sena chief is said to have
told his Trade Union leaders to be reasonable and not unduly harass the Apna
Bazar management. He also asked the Apna Bazar leadership to get in touch
with him personally if there was any such problem. Of course, given the socialist
orientation of the management, it is also sympathetic to the demands of workers.
In a meeting with leaders of employees, it emerged that salaries and benefits that
employees get here are better than the private sector and they do get all their legal
dues without hassles. A woman leader informed that women employees do not
face any gender-based harassment. The main problem raised by employees was
(effectively) a very long working day on account of mid-day closure of outlets.
One also came across a complaint, usually heard in government set-ups, that per-
formers and non-performers are treated alike here.
In recruitment, members and their families are informally preferred. An ex-
General Manager informed that during his time he allowed the BOD a free hand
in recruitment. Directors could recommend people. But, he made it clear, that one
could enter the organization through recommendations but had to survive and
progress on his/her own merit. After recruitment, in day-to-day transfers and work
allocation, etc., leaders were expected to keep off. He justified recruitment on the
basis of recommendation on the ground that shop-floor retailing does not require
extraordinary talents. What matters more is commitment to the cooperative, which
somebody from the Apna Bazar family was more likely to possess.
ACHIEVEMENTS
Financial data given in Table 1 shows that Apna Bazar earned profits till 1995–1996.
Thereafter, till 1998–1999, it was formally making profits, but this was on account

Table 1
Some Salient Financial Details of Apna Bazar (in Rs million)
Accumulated Estimated
Deferred Total
Revenue Cumulative
Fiscal Year Cumulative Expenditure Losses Total Public
Ending Turnover∗ Net Profit# Losses (A) (B) (A + B)$ Deposits
2004 1,273.6 (–) 12.0 69.0 47.6 (–) 116.6 255.4
2003 1,323.4 (–) 10.0 57.0 89.0 (–) 146.0 214.8
2002 1,339.9 (–) 9.8 47.1 66.5 (–) 113.6 170.6
2001 1,291.3 (–) 14.0 37.3 43.9 (–) 81.2 145.1
2000 1,348.8 (–) 23.2 23.2 41.0 (–) 64.2 128.6
1999 1,473.3 1.1 @ 39.3 @ 97.8
1998 1,308.9 1.5 @ 18.5 @ 76.2
1997 1,313.3 1.5 @ 12.5 @ 49.6
1996 1,269.6 1.2 @ 4.2 @ 45.5
1995 1,240.0 1.4 @ 0.1 @ 38.1
Source: Various Annual Reports.
Notes: ∗ Turnover is arrived at by adding sale value of empties to total sales figure.
Moreover, sales figures include an element of double counting as part of sales
of APMC wholesale store are internal sales to other branches. As per detailed
data presented in the ‘Joint meeting’ of 11 July 2004, corrected turnover could
be lower by about 10 per cent.
# Net profit figures can be deceptive as after 1996 certain losses have been shown
as ‘deferred revenue expenditure’, thus underestimating losses.
$ All deferred revenue expenditure is being added here to losses but part of it
could be genuine deferred revenue expenditure.
@ Not relevant as profits distributed each year.
of certain expenses being treated as deferred revenue expenditure. Since 1999–

2000, it has formally been in the red. Accumulated losses peaked in 2002–2003
and came down in 2003–2004. So perhaps, an upturn has begun. Down turn in
the fortunes of Apna Bazar is said to have started towards the end of 1980s when
owners of many buildings won court cases against the state government. As a
result Apna Bazar had to vacate many premises and close down many outlets.
This was compounded by changes in PDS policy around the same time, which
significantly shrunk PDS operations. The organization was left with lots of surplus
manpower and non-viable branches.
These factors were compounded by failed production ventures. Detailed in-
vestigation into reasons of failure and closure of various production ventures has
not been undertaken. However, some of the explanations offered by the CEO

include general trend towards outsourcing, labour trouble and other specific
problems of backward region (where many of these ventures were located so as
to avail various government concessions). Management is of the view that once
the past losses are recouped, the Bazar will be making profits as its main business
of retailing is doing well.
Apna Bazar claims to sell cheap.30 Specifically, it claims to sell medicines at
least 8 per cent cheaper than the market. For other products too it claims to sell
cheaper than the market as well as print price. While it is admitted that selling
less than the print price in these days of shopping malls and mega stores is not
quite unique, it is argued that in its early phase, when the law to print maximum
retail price in India was not there and packaging also was not so common, the
entry of Apna Bazar had a significant impact on the market on account of its
reasonable prices and assured quality. In that phase, it even faced retaliation and
resistance from other retailers as well as harassment at the hands of the government
machinery (Apna Bazar 1989). It was informed that even now, private medical
retailers gang up to pressurize wholesale distributors not to supply to the Bazar
or to ensure that the Bazar does not get permission to open a medicine outlet
in a certain area.
The Bazar also takes pride in maintaining supply as well as prices of essential
items in times of scarcity or crisis, like the post-Babri Masjid demolition riots
of Mumbai. Moreover, as it procures supplies directly from manufacturers,
customers are assured of getting a genuine product and not a spurious one. As
a result, twice, in 1989 and 2001, the organization has received the ‘Jamna Lal
Bajaj Award for Fair Business Practices’—this award is another source of pride
for Apna Bazar activists.
We have not tried to verify the claim of selling cheaper.31 Such a comparison is
not essential for our purpose, which is to document the existence of a self-reliant
cooperative in a wide variety of settings. The survival of a cooperative, which is
not subsidized and which has no captive market for so long is an achievement
in itself, provided it is really collectively owned and controlled and does not just
have the façade of being a cooperative. Apna Bazar clearly has no captive market
nor has it received any special and regular subsidy.32 So, the crucial issue is: ‘Does
it really function in a participatory manner?’
Available evidence suggests that it is so. Participation of about 300 members
in various committees in purely honorary capacity, participation of all Branch
Committee Presidents and Secretaries in the monthly meeting of the BOD and
six- monthly joint meeting of all committees is ample evidence of its participatory
character. The fact that joint meetings last for 4–5 hours, monthly meetings of
BOD can go up to 3 hours and meetings of Branch Committee go up to 2 hours,

indicates substantive participation rather than just formal rubber-stamping.33

That the six-monthly stocktaking of over 60 outlets can be done in just 2–3 days
also indicates wider participation in its affairs. Sometimes what happens is that
notionally there is substantial participation of general public/members as against
employees/full time workers but in effect it is notional only as a select few ‘part
time members/outsiders’ actually participate. However, this is not true of Apna
Bazar. Over 56 years it has had 13 different individuals as President/Chairman.
To cap it, most of the activists have working class origin. Many of its leaders
have no hesitation in admitting to their humble family background and the
fact of still living in a chawl.34 The list of committee members proudly displays
their qualifications, which in most cases do not go beyond ‘B.A.’. Such is the
background of persons who have built such a big retail chain. In the words of
Chalke (2000): ‘Apna Bazar is really an extraordinary story of ordinary men and
women.’
SOME DISCOMFORTING ASPECTS

Certain aspects of Apna Bazar do not go well with its ‘socialist’ orientation and
raise doubts about the ability of cooperatives to act in a qualitatively different
manner—particularly in isolation—without being part of a larger movement.
The Bazar has also jumped on the bandwagon of consumerism by promoting
‘buy one, get one free’ kind of marketing. While manufacturers promote some of
these schemes, Apna Bazar, too, has no qualms about promoting this mentality.35
It has its own ‘lucky draw’ schemes and gifts on purchases beyond a certain
amount. One sticker reads, ‘Rupae 500 chi kharedi kara va maruti 800 milwa’.36
While Apna Bazar leadership has a simple lifestyle, as an organization it does not
appear to promote it. Except for the policy to not stock tobacco products and other
intoxicants, there seem to be no other taboos on stocking. It is said that anything
that could ‘interest’ a potential consumer should be stocked. In fact, the whole
effort seems to be geared at increasing sales and surviving in the market, albeit
without undertaking underhand measures and as a socio-political task, rather
than as a personal goal.37 One can understand that the pressure of competing in
the market is forcing the Bazar to follow these policies, but to that extent it is
also losing its raison d’être.
A related aspect is the dominant role of Department and Super stores in its
operations. In 2003–2004, of the total sales of Rs 1,273.6 millions, about 60 per
cent came from these big outlets and smaller stand-alone outlets contributed
about 19 per cent only. The biggest sales generator in recent years has been the

Andheri Department Store, contributing more than Rs 220 million (more than
17 per cent of turnover) in 2003–2004. Obviously, these big outlets are situated
in posh areas and cater to their needs. In fact, the annual report for 2003–2004
notes with satisfaction that the organization has been able ‘to attract high society
customers on large scale’ (p. 4, section 4.2). While the emergence of these big
stores could be justified as a strategy to survive in a market where big capital is
entering in a big way, and such growth could even be a source of pride,38 it does
raise questions about the ability of cooperatives to pose a challenge to capitalistic
forces, particularly in isolation. From the perspective of decentralized and localized
development, its growth in size, rather than replication, is disturbing too.
Is the Apna Bazar story replicable? Before answering this, it may be pointed
out that in the 1950s and 1960s, a number of cooperative stores had come up in
Mumbai. They soon faced problems and requested Apna Bazar to take over their
management. That is how the initial expansion of Apna Bazar took place. Only
few of the present big stores were started from the scratch by the organization.
While Apna Bazar flourished, other cooperatives could not survive. This fact
itself indicates potential as well as challenges faced by cooperatives in general
and consumer cooperatives in particular.
Though not registered as cooperatives, about half a dozen shops being run
by Mazdoor Kissan Shakti Sanghtan (MKSS) in Rajasthan are actually functioning
as self-reliant cooperatives.39 The first shop was started in 1991. These shops
have broadly similar structure and functioning as Apna Bazar. However, there is
one major difference. MKSS outlets are shops for the ordinary, working class
people and not for the elite or upper middle class. MKSS outlets are like village
shops next door and not posh department stores. However, it is too early to draw
any conclusions. MKSS outlets may also grow up the Apna Bazar way, but pre-
sently they do indicate the other possibility.
The ‘rags to riches’ stories inspire many. Will the story of Apna Bazar’s
growth—from a single PDS outlet to a big retail chain with more than 65 outlets
and a turnover of about Rs 1,300 million over 56 years—inspire many other such
cooperatives in India and elsewhere? It may be asked that in this age of world
capital, is it possible for cooperatives to survive with an alternate vision. It may be
difficult to survive as cooperative islands in a world dominated by market forces,
but it is not impossible. Cooperatives are surviving. These can flourish if forces
working for social change also seek to promote them.
Rajinder Chaudhary is a Reader with the Department Of Economics, M.D. University,

Rohtak-124001, Haryana, India. Email: rajinderc@gmail.com

Notes
∗ The author is grateful to the Apna Bazar family for their unstinting help and
cooperation and to his colleagues, Prof. Surender Kumar and Dr. H.S. Ratnoo for
their detailed comments on the earlier drafts. Usual disclaimers apply.
1. ‘Bazar’ means market, Kendriya is central and Bhandar is store.
2. This public image is not misplaced. It is officially claimed that Super Bazar ‘regis-
tered as a cooperative society under the Multi-State Cooperative Societies Act,
1984 functions under the administrative control of the Department of Consumer
Affairs…’ (http://fcamin.nic.in/cabinet.htm). Similarly, it is noted that ‘The Central
Government Employees Consumer Cooperative Society Ltd. operating in the name
& style of Kendriya Bhandar and having ‘the distinction of being the largest consumer
cooperative society in the country in terms of membership’ is ‘a welfare project of
the Govt. of India, under the Ministry of Personnel, Public Grievances & Pensions’
(http://persmin.nic.in/dopt/KB1.html).
3. In English it would read: ‘Mumbai Workers’ Central Cooperative Society Limited’.
4. In English, ‘Our Own Market’.
5. In Mumbai/ Maharashtra there are many other consumer cooperatives like Sahkari
Bhandar, Suparibagh Grahak Sanatha, Shivshankar Bazar and Warna Bazar. However,
Apna Bazar is the oldest and largest such consumer cooperative. Except for Warna
Bazar, perhaps none of the others is known outside its area of operation or to ‘non-
cooperators’. ICA (1996) does have reports on some of these but not on Apna Bazar.
Moreover, these case studies do not evaluate their participatory character.
6. Chalke (2000) is a 12-part report in a Marathi newspaper. Apna Bazar (1989) gives a
comprehensive view of the organization in English but is dated as well as an in-house
publication. Some of the Annual Reports too give summary in English. Business India
(2000) is the only other English language material that could be located.
7. This is part of a larger study to locate and document self-reliant, real cooperatives
of long standing in a variety of settings so as to dent the image of cooperatives being
either a sham or government controlled. One of the organizations studied was Lijjat
Papad with 42,000 members. Though not registered as a cooperative, it claims to be
one. However, our study shows that it is not really a cooperative (Chaudhary 2005a).
Other cooperatives studied include an 80-year cooperative of construction workers
(Chaudhary 2005c) and a fresh–milk cooperative selling unprocessed milk (Chaudhary
2005e).
8. Public distribution system (PDS) provides limited quantities of certain commodities,
mainly food items, at controlled prices.
9. One lakh is one hundred thousand and one crore is 10 million.
10. Formally, anybody can become a member with the approval of the Board of Directors.
However, in practice, membership is sought to be restricted to those who can fit in
with the ‘Apna Bazar’ culture/ideology. It is reported that an ex-president lost all
standing in Apna Bazar when he moved to a non-socialist mainstream political party.
In the 2003 Annual General Body meeting, 2,027 members participated.

11. Many of the primary cooperative societies are practically defunct; with some not even
traceable. Other societies too are not very active.
12. There is a statutory ceiling on dividend—a maximum of 12 per cent of net profits
can be distributed as dividend. Presently, members get bonus (gift) coupons worth
five per cent of their share holding and discount coupons worth an equal amount.
13. It is a socialist organization active in socio-cultural field since pre-independence.
14. Control committee is like a parallel supervisory body in addition to the BOD, but it
is not involved in day-to-day management.
15. Presently, most of the office bearers of BOD are retired persons and put in a full
working week, but earlier even office-bearers had been working fulltime elsewhere.
16. While the President has an office car, the other five office bearers get just Rs 1,000 per
month to meet their travel cost. Other committee members, in a city like Mumbai,
are paid just Rs 25 for attending formal branch committee meetings. For other visits,
they do not get even this amount.
17. In one meeting that this author attended, the atmosphere was quite relaxed and par-
ticipatory, so much so that some officers could even laugh at a proposal of a senior
office bearer.
18. This is called ‘joint meeting’. As the number of members of Apna Bazar is more than
15,000, this smaller meeting acts as de facto General Body meeting and serves to bring
in broader participation in the management. It seems that the Annual General Body
meeting is more of a formality, as surprisingly, minutes of the Annual General Body
meeting held on 5 September, 2004 had not been written even by February, 2005.
19. In addition to outsourcing, one found that in the wholesale depot dealing with agri-
cultural produce, daily-wage workers were also engaged for cleaning of grains.Out-
sourcing contracts have provision of PF, bonus, ESIC dues, etc., for workers engaged
and these are regularly monitored.
20. Even earlier, on their own, PDS operations were not viable. PDS operators quite
often cite non-viability to justify their own corruption, but it is generally treated to
be an excuse. But if the Bazar also found it to be unviable, then it is a serious issue.
21. Simultaneously a notional amount is added to the purchase figures of the Bazar. Apna
Bazar maintains price and quality control over these counters.
22. Wholesale stores do not supply to the sale outlets at their purchase price. They charge
their own margins while keeping in mind market wholesale prices.
23. In fact, not only purchase mechanism but also all other systems of the Bazar like sale
and stocking mechanism are also similar to any big retailer.
24. As it is usually difficult to precisely fix responsibility for shortages, recoveries are not
made and administrative measures like issuance of written warning are used.
25. In arriving at value of the stock, FIFO (First in, first out.) method is followed, that
is, the stock is valued at the latest prices and backwards.
26. However in case of items like sugar where price fluctuations are quite frequent, the
branch managers make the necessary entries.
27. Such items enter in total sales figure as sales of wholesale depots.
28. Pickles/spices, once sold under its own brand name, are now produced by a licensee.

29. One old hand informed that one reason for not organizing these as separate cooper-
atives was the urge to have one big, growing family and remain united.
30. Strangely, some of the promotional literature highlights the price and quality aspects
but not the cooperative character of Apna Bazar.
31. Though such an exercise has its own use, it could not be done, as any meaningful
comparison with such a large number of products and wide variety of market players
requires substantial resources.
32. It did receive government capital initially and some loans and subsidy for its production
ventures as a part of normal government policy. As noted earlier, it has now returned
all government funds. It had also rented certain government premises at regulated
rents but these benefits too are not special to Apna Bazar.
33. In a BOD meeting, those sitting on the dais/leadership got snacks last of all. Not a big
deal as such, but given the usual scenario in India where those on the dais not only
get preferential treatment but also get separate types of snacks in distinctly different
dishes, it is quite a democratic step. In a BOD meeting that this author attended, all
proposals brought were approved, but only after a lively debate, and proposals were
fairly detailed.
34. One of the senior leaders informed that he belonged to a poor family and as a child,
for food, he had to live with another family where he first came to know about the
Bazar. Chawl is a typical Mumbai term and refers to old one- or two-room living
accommodation with common toilet facilities.
35. In some cases special schemes are specially designed for Apna Bazar.
36. In English this will read, ‘Spend Rs 500 and get a Maruti 800 (car) free’.
37. In fact it appears that presently its main strategic goal is to earn enough to meet its given
manpower costs in the face of declining sales/sales margins. It means overwhelming
concern now is not to reach out to more customers or to give them better services
but how to earn enough to pay employees. This is rather unfortunate for a consumer
cooperative and seems to justify more flexible labour policies.
38. Besides competition from big capital, challenges it faces include changing consumer
habits where consumers do not just expect ‘shopping pleasure’ but ‘shop for pleasure’.
For them, selling cheap is no big deal. Lack of car parking space is another problem
it faces, as its older outlets do not have adequate parking space.
39. MKSS is a non-funded grass-root organization struggling on various issues but has
received wide acclaim for its ‘Right to Information Campaign’.
Refrences
Apna Bazar. 1989. Achievements of Mumbai Kamgar Madhyawarty Grahak Sahkari Mandal
Ltd. Mumbai: Apna Bazar.
Apna Bazar. Annual Reports, various years, Mumbai: Apna Bazar.
Business India. 2000. ‘Apna Success’, Business India (10–23 July): 96–97.

Chalke, Nandini. 2000. ‘Apna Bazar: Samnyanchi Asamanya Shorya Gatha’ (In English,
Apna Bazar: An Extra-ordinary Story of Ordinary Persons), Navshakti, Mumbai,
6 August–5 November.
Chaudhary, Rajinder. 2005a. ‘Lijjat and Women’s Empowerment: Beyond the Obvious’,
Economic and Political Weekly, XL, 6 (5 February): pp. 579.
———. 2005b. ‘Fourth World: Marxian, Gandhian, Environmental...’, Economic and Political
Weekly, XL (42): 4504–06.
———. 2005c. ‘The ULCCS: An 80-Year-Old Construction Labour Cooperative’, Inter-
national Journal of Rural management, 1 (2): 263–84.
———. 2005d. ‘Capitalism: In Search of Alternatives’, Social Change, XXXV (4)
December.
———. 2005e. ‘Milk Cooperative with a Difference’, Mimeograph, Department of Econ-
omics, M.D. University, Rohtak, Haryana, India.
———. 2006. ‘Cooperatives’, in Alternative Survey Group (ed.), Alternative Economic Survey,
India 2005–06: Disempowering Masses. Delhi: Danish Books.
Darashaw, N.D. Presentation on Business Restructuring of Apna Bazar Cooperative Society, Con-
sultancy Report, Apna Bazar, Mumbai.
International Cooperative Alliance (ICA). 1995. Report of the ICA/NCCT Sub-Regional
Seminar on Consumer Cooperative Development in India for the Benefit of Indian Sub-continent,
Bombay, 27 April to 03 May 1994. New Delhi: ICA Regional Office for Asia and the
Pacific.
———. 1996. Management of Consumer Cooperatives for South and South-East Asia—A Workshop
Report. New Delhi: ICA Regional Office for Asia and the Pacific.
Websites
http://fcamin.nic.in/cabinet.htm. Accessed on 25 February 2005.
http://persmin.nic.in/dopt/KB1.html. Accessed on 25 February 2005.

The Apna Bazar Cooperative From Single P

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The Apna Bazar Cooperative From Single P

Uploaded by

Copyright:

Available Formats

International Journal of

Rural Management http://irm.sagepub.com/

The online version of this article can be found at:

Institute of Rural Management

Email Alerts: http://irm.sagepub.com/cgi/alerts

Downloaded from irm.sagepub.com at MAHARSHI DAYANAND UNIV on March 1, 2012