Analysis of Business Performance of Self- Help Group Dugli with special reference to Food Processing Products: A Case study of Dhamtari District

¹Noopur Agrawal, ²Alok Agrawal

¹Department of Commerce, Agrasen Mahavidyalaya, Purani Basti Raipur, Chhattisgarh, India.

²Department of Commerce, Agrasen Mahavidyalaya, Purani Basti, Raipur, Chhattisgarh, India.

 noopuragrawal82@gmail.com, alokgarg2206@gmail.com

*Corresponding author: Alok Agrawal (alokgarg2206@gmail.com)

This research is conducted to assess the business performance of Self-Help Group (Vandhan Vikas Kendra, Dugli) with special reference to Food Processing Products in the Dhamtari district of Chhattisgarh state. This research study is a Case study, to determine the Cost and Net returns and analysis of Business Performance of Four Food Products produced by SHGs. Primary data was collected through a structured Scheduled questionnaire, complemented by secondary data from research papers and books based on the research area. The Total Net Returns of Food products produced in SHGs are Tikhur Rs. 162900, Amla Candy (Sweet) Rs.4200, Amla Candy (Salty) Rs.5100 and Aloe vera Juice Rs.27500. Suggestions are provided for further development of SHGs including, adopting modern marketing strategies, improving supply chain management in off-season and providing training assistance to members of SHGs. This case study offers the valuable role of SHGs in rural economic development and the possibilities of food processing as a sustainable livelihood option.

Keywords: Business Performance, Food Products, Self-Help Group, Members.

JEL Classification: L25, L31, L66

Introduction:

Rural communities’ economic empowerment is still essential to sustainable development, especially in developing nations. Self-help groups also known as (SHGs) have become effective tools for promoting entrepreneurship, skill development and financial inclusion among underserved communities. Members of these community-based groups can effectively solve socioeconomic difficulties since they function on the tenets of mutual help and group decision-making.

The present study focuses on the business performance of the Vandhan Vikas Kendra (Self-help group) Dugli, with special reference to food processing products. Situated in Dugli village in the Dhamtari district of Chhattisgarh state in India. This Self-help group has great potential in food processing of food products by using Minor Forest products. This group Produces by using minor forest products including Aloe vera Juice, Soap, Body wash, Shampoo, gel, moisturizer, hair- conditioner, Amla Candy, Amla Churna, Tikhur Powder etc. However, the present study focuses on only four food products for Business Performance analysis which include Tikhur, Amla Candy (Sweet), Amla Candy (Salty) and Aloe Vera Juice. All produce products in this SHGs are sent to Non-Wood Forest Produce Mart for selling further. This mart is established and run by the State government which helps the marketing of products, produced in SHGs.

·        An Overview of Self-Help Group (Vandhan Vikas Kendra):

(PROGRAMS | TRIFED - Tribes India | PMVDY, n.d.)The Van Dhan scheme is an initiative of the Ministry of Tribal Affairs and Tribal Co-Operative Marketing Development Federation of India Limited (TRIFED). It was launched on 14^th April 2018 and the motive to improve tribal income and value addition of tribal products. Aggregation of produce would be done by SHGs having about 30 members each forming Van Dhan Vikas ‘Samuh’ at the unit level (Van Dhan Scheme, n.d.). Vandhan Vikas Kendra has been operational since 2018 in Dugli Village of Dhamtari District of Chhattisgarh state. In this SHGs, women prepare 22 different products, including 15 medicinal and food items licensed by AYUSH and Food Safety Departments. Additionally, since 2023, the center has started producing aloe vera-based products. In 2021 center received National Award from the Ministry of Tribal Affairs for outstanding forest produce collection and processing (TIMES), 2024).

·        Business Performance Analysis:

Business Performance Analysis is the systematic evaluation of a company’s financial and operational performance to determine its efficiency, effectiveness, and ability to meet strategic objectives. This process involves analyzing key performance indicators, financial statements and operational metrics to identify strengths, weaknesses, opportunities and threats.

The primary goal of business performance analysis is to make data-driven decisions that enhance profitability, productivity and sustainability. It includes financial analysis, and market analysis (Kaplan & Norton, 1992).

·        Food Processing:

Food Processing refers to the techniques and methods used to transform raw agricultural products into consumable food items. This includes a wide range of activities such as cleaning, cooking, preserving, Packaging and fortifying food to enhance its shelf life, Safety, flavor, nutritional value and marketability (Smith & Hui, 2008).

Literature Review:

(Baghel & Shrivastava, 2015) The research investigates how self-help groups influence the socio-economic development of women in rural areas of the Durg district of Chhattisgarh, revealing beneficial effects on both social and economic factors and suggesting the need for government assistance in income-generating initiatives to enhance economic development.

(Diwakar, Deepti, Gauraha, Dr. AK & Pathak, Dr. Hulas) In this research paper titled “Business performance of Ujala gram Sangthan Self-help Group Shirdikhedi of Raipur District: A case Study” (2023) examines Business performance by focusing on their sales and marketing plans through Chhattisgarh Mart and finding important problems such as Fluctuation in raw material prices, Unavailability of Manpower, and lack of advertising. The study suggests recommendations such as using social media and FM radio for advertising.

(Ekka, Tanuja, Chandrakar, MR & Shrey, Ravi) In this research paper titled “Business performance of self-help groups: A case study of Surguja district” (2023) assesses the performance and finds out problems faced by Self-help groups such as fluctuating raw-material prices and insufficient advertising. This study uses Personal interviews using pre-tested questionnaires and scheduled methods for collecting data. The study suggests plan such as social media and FM radio for data advertising.

(Nagesha & Ajeya, 2018) The research studies the socio-economic conditions and the role of Self-Help groups in driving rural development in Molakalmuru taluk, particularly in terms of how these organizations enhance, income, quality of life, and socio-economic circumstances via social mobilization, skill enhancement, and microfinance.

(Singh et al., 2024) The study analyses the influence of self-help groups in promoting women’s empowerment and their effect on the sustainable management of Minor Forest produce in rural Chhattisgarh, concluding that SHGs significantly boost women’s empowerment and play a vital role in socio-economic progress and sustainability.

(Visani et al., 2012) This Paper presents Business Performance Analytics (BPA) as a framework for the effective design and implementation of a Performance Measurement System (PMS), emphasizing its low uptake among global businesses and recognizing two district groups that utilize different methods for performance measurement, with the “advanced” group demonstrating greater effectiveness and satisfaction.

Objective of study:

  i.          To determine the Cost and Returns of selected Self-Help Group Food Products.

ii.          To analyze the Business Performance of selected Self-Help Group Food Products.

Novelty of study:

·        The study presents a unique micro-level financial analysis of a single Self-help group in Dugli, Dhamtari district. It focuses on cost-return metrics of individual products, an area that is rarely covered in the literature currently available on SHGs.

·        In contrast to many qualitative case studies, this work provides a useful problem-prioritization framework by ranking operational limitations (such as fluctuations in the price of raw materials and labor shortages) according to their severity.

·        Use of Input-Output ratios and Variable cost approach to assess the efficiency and economic feasibility of microbusinesses operated by Self-Help Groups (SHGs), offering detailed information on the profitability of individual Products.

Novel Contribution of study:

·        The case study improves the scalability and evaluation of government programs encouraging women’s entrepreneurship by providing a reproducible approach for evaluating SHG profitability in different districts or states using input-output analysis and Variable cost ratios.

·        The study gives stakeholders and policymakers a performance standard to assess the effectiveness of SHGs operating under the Van Dhan scheme.

·        SHGs and local business owners can use the cost-return statistics to make well-informed decisions about production and investment.

Research Methodology:

  i.          Research Design:

The research design for this study was a Case Study because it focuses on the Analysis of Business Performance of Vandhan Vikas Kendra (SHGs), Dugli with special reference to Food Processing Products: A Case study of Dhamtari district.

ii.          Sources of Data:

The sources of data collection for this case study are both Primary and Secondary. The primary data is obtained from the Self-Help Group (Vandhan Vikas Kendra), Dugli (respondent) and Secondary Data is obtained from Books, Research Journals, Government Websites and reports.

iii.          Sampling Decisions:

Vandhan Vikas Kendra (Self-Help Group) of Dugli village in Dhamtari district of Chhattisgarh state in India is selected for this research. A convenient sampling method is used for selecting the sample.

iv.          Research instrument:

A structured Scheduled questionnaire is prepared to collect data from the Self-Help Group.

v.          Statistical tests applied in the research study:

The data collected from respondents was analyzed by the following method: -

·       Percentage Analysis:

Percentage analysis is a financial tool used to express an item’s value as a percentage of a total, allowing for comparative evaluation across different periods or entities. It is commonly used in financial statement analysis to assess the relative significance of specific components within a financial report (Brigham & Houston, 2019).

Formula:

Percentage = (Part/Whole) *100

Part = The Specific Value

Whole = The Total Value

The Result is expressed as a percentage (%)

·       Determination of Total Variable Cost & Net Returns:

The total cost (TC) of producing a good or service is the sum of all costs incurred in production (Agrawal & Gupta, 2022).

Formula:

Total Cost = Raw material Cost + Labour Cost + Processing Cost + Packaging Cost + Advertisement Cost

Net Returns = Gross returns – Total Variable Cost of Product

·       Input-Output ratio:

(Agrawal & Gupta, 2022) The Input-output ratio is the ratio of total output to total

input. The ratio was calculated using the following formula: Input-Output ratio = Total output/Total Input.

Total Input:

The cost associated with labor, Processing (such as energy and other maintenance costs), Packaging, Labelling and Advertisement cost, as well as the acquisition of raw materials like Amla and Tikhur.

Total Output

The output figures were calculated using the sales volume of SHG.

·       Variable Cost ratio (VC ratio):

A SHG variable production costs are expressed as a percentage of sales using the variable cost ratio, which is calculated by dividing variable costs by total gross income.

VC ratio = (Variable cost/Gross Income) × 100

With the use of this ratio, SHGs will able to forecast how much gross income will be required to cover costs and how profit will change depending on production levels. This tool can be used to plan for future production, expenses, pricing and profitability.

Data Analysis and Interpretation:

Table 1: Demographic profile of the Respondents’ (SHGs)

Source: Researcher Calculation using Primary data

Table 1, the percentage frequency distribution of demographic variables of respondents (SHGs) s is given. 100% were females. 50% were belongs to age group 18-30 Years, 33% belonged to the age group 31-40 Years and 17% belonged to the age group 41-50 Years. Literacy Level of SHGs members is 13% were Illiterate, 54% were in Primary school, 17% were in middle school, 3% were in high school and 13% were Graduate & Post- Graduate. 83% were married and 17% were Unmarried. 97% belong to the Schedule tribe and 3% belong to Other Backward Class (OBC).

Table 2: Cost and Returns of Food Products of Vandhan Vikas Kendra (SHGs)

Source: Researcher Calculation using Primary data

Table 2, Show the Total Cost of Food Products produced in SHGs is Tikhur Rs. 527/Kg, Amla Candy (Sweet) Rs.58/Kg, Amla Candy (Salty) Rs. 58/Kg and Aloe vera Juice Rs.135/Litre. Net Returns are Tikhur Rs. 543/Kg, Amla Candy (Sweet) Rs.42/Kg, Amla Candy (Salty) Rs.17/Kg and Aloe vera Juice Rs.110/Litre.

Table 3: Business Performance of Food Products of Vandhan Vikas Kendra (SHGs)

Source: Researcher Calculation using Primary data

Table 3, show the Business Performance (Net Return) of Food Product Produced Per year in SHGs are Tikhur Rs. 162900 (81.57%), Amla Candy (Sweet) Rs.4200 (2.11%), Amla Candy (Salty) Rs.5100 (2.55%) and Aloe vera Juice Rs.27500 (13.77%).

Findings of the research study:

i.          Demographic Characteristics:

·       At Vandhan Vikas Kendra, Dugli, all members of the Self-help group are Female (100%) and half of them (50%) are between the ages of 18 and 30.

·       97% of members are Scheduled Tribes (ST), 83% are married, and the majority (54%) have completed primary school.

ii.           Cost and Returns of Food Products:

·       The Following total production costs per unit are revealed by the examination of a few chosen food products: Amla candy (sweet) costs Rs.58/Kg., amla candy (salty) costs Rs. 58/Kg. and aloe vera juice costs Rs. 135/Liter. Tikhur costs Rs. 527/Kg.

·       The Corresponding net returns are as follows: Rs. 543/Kg. for Tikhur, Rs. 42/Kg. for Sweet Amla candy, Rs. 17/Kg. for Salty Amla Candy, and Rs. 110/liter for Aloe Vera Juice.

iii.          Business Performance:

·       The selected food products’ annual total net returns are:

-        Rs. 1,62,900 in Tikhur (81.57% of total returns)

-        Aloe Vera juice (13.77%) costs Rs. 27,500.

-        Salty Amla Candy: Rs. 5,100 (2.55%)

-        Sweet Amla Candy: Rs. 4,200 (2.11%)

With the lowest Variable cost ratio (49.25%) and the highest input-output ratio (1:2.03), Tikhur is the most profitable product.

iv.          Operational Issues:

·       The lack of raw materials during the off-season is a significant problem for the SHG, resulting in production limitations and fluctuating product supply.

Conclusion and Suggestions:

In this case study value addition of food products derived from forests, this case study focuses on important role that Self-help groups (SHGs) play in empowering rural area women and improving local livelihoods. Vandhan Vikas Kendra, Dugli Business Performance study shows encouraging profitability, particularly for products like Tikhur and Aloe Vera juice. Consistent production and profitability are, however, limited by seasonal dependence on raw materials. To expand and maintain such initiatives, it is suggested that: 1. SHGs are given continuous training in product development & business management. 2. Improve raw material supply and marketing support, especially during non-harvest seasons, and increase government support. 3. To improve product visibility and consumer reach, promotion via digital platforms and local media (such as FM radio) should be promoted.

The study’s overall findings highlight the economic potential of Food Processing led by SHGs as a practical and sustainable rural development approach, particularly when implemented under programs like Van Dhan Vikas Yojana.

Limitations of the research study:

  i.          This study is based on Vandhan Vikas Kendra (SHGs), Dugli. So, its findings cannot be generalized.

ii.          The result may differ if this study had been conducted in some other Self-Help Group.

iii.          Production of Products based on the availability of seasonal raw materials from the forest, that’s why only Four Food Products are selected for Business Performance analysis which includes Tikhur, Amla candy (Sweet) Amla Candy (Salty) and Aloe Vera Juice.

iv.          At the time of primary data collection only Amla, Aloe Vera and Tikhur are available as a raw material for production.

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