Since 1890, Dressed in white outfit and traditional Gandhi Cap, Mumbai Army of 5,000 Dabbawalas fulfilling the hunger of almost 200,000 Mumbaikar with .
ENTREPRENEURSHIP
Case Folio July 2004
42
error in six million transactions. That put them on the list of Six Sigma rated companies, along
with multinationals like Motorola and GE. Achieving this rating was no mean feat, considering
that the Dabbawalas did not use any technology or paperwork, and that most of them were illiterate
or semiliterate.
Apart from Forbes, the Dabbawalas have aroused the interest of many other international
organizations, media and academia. In 1998, two Dutch filmmakers, Jascha De Wilde and Chris
Relleke made a documentary called “Dabbawalas, Mumbai’s unique lunch service”. The film
focussed on how the tradition of eating home-cooked meals, and a business based on that could
survive in a cosmopolitan city like Mumbai. In July 2001, The Christian Science Monitor, an
international newspaper published from Boston, Mass., US, covered the Dabbawalas in an article
called ‘Fastest Food: It’s Big Mac vs. Bombay’s Dabbawalas’.6
In 2002, Jonathan Harley, a reporter,
did a story on the Dabbawalas with the Australian Broadcasting Corporation (ABC). In 2003,
BBC also aired a program on the Dabbawalas, which was part of a series on unique businesses of
the world. In 2003, Paul S Goodman and Denise Rousseau, both faculty at the Graduate School
of Industrial Administration of Carnegie Mellon University, made their first full-length documentary
called “The Dabbawalas”. According to the press release of the TV station presenting the
documentary, “The film also serves as a counterpoint. Instead of asking how knowledge in
developing countries can help less developed countries, this film focuses on how developed countries
can learn from less developed countries.”7
Back home, the Dabbawalas were invited to speak at Confederation of Indian Industry (CII)8
meets and at leading Indian business schools such as IIM, Bangalore and Lucknow.
Background Note
The origin of the Dabbawalas’ lunch delivery service dates back to the 1890s during the British
raj.9
At that time, people from various communities migrated to Mumbai for work. As there were
no canteens or fast food centers then, if working people did not bring their lunch from home, they
had to go hungry, and invariably, lunch would not be ready when they left home for work. Besides,
different communities had different tastes and preferences which could only be satisfied by a
home-cooked meal. Recognizing the need, Mahadeo Havaji Bacche (Mahadeo), a migrant from
North Maharashtra,10
started the lunch delivery service.
For his enterprise, Mahadeo recruited youth from the villages neighboring Mumbai, who were
involved in agricultural work. They were willing to come as the income they got from agriculture
was not enough to support their large families, and they had no education or skills to get work in
the city. The service started with about 100 Dabbawalas and cost the client Rs. 2 a month. Gradually,
the number of Dabbawalas increased and the service continued even though the founder was no
more. In the 1950s, the Dabbawalas were delivering 2,00,000 lunches a day. The Dabbawalas
became organized after 1954 when the Nutan Mumbai Tiffin Box Suppliers’ Charity Trust was
6
Scott Baldauf, the reporter who covered the story, followed aDabbawala to understand the delivery process and their
daily routine.
7
“WQED Multimedia Pittsburgh presents Paul S Goodman’s documentary about theDabbawallas ofMumbai,India”,
www.wqed.org
8
CII is a not-for-profit and non-government organization established in 1895 by members of the Indian industry. They
work with the government, companies and similar international organizations to facilitate the growth of industry in
India. The CII has a membership of over 54,800 companies, both national and international. They have offices in
India and overseas.
9
British raj was what the British rule in India was called.
10
Maharashtra is one of the states of India. Mumbai is the capital of the state.
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Case Folio July 2004
43
established. The Trust had offices in various parts of the city such as Grant Road, Dadar, Chembur,
Ghatkopar and Mulund. It was the only body representing the Dabbawalas. The Dabbawalas lost
a large group of clients, the mill workers, during the 1980s and 1990s, when the mills started
closing down. However, they eventually gained other clients. People who felt that outside food
was unhygienic and who wanted to have a specific diet started to use their service. In early 2000,
the Dabbawalas were back to delivering up to 1,75,000-2,00,000 lunches a day.
Organizational Structure and Working Style
The Nutan Mumbai Tiffin Box Suppliers’ Charity Trust had a very flat structure with only three
levels, the Governing Council, the Mukadams11
and the Dabbawalas (Refer to Exhibit I). From
the Governing Council, a President
and a Secretary were elected. The
Governing Council held meetings
once a month which were attended
by the Mukadams and Dabbawalas. At
these meetings, the Dabbawalas
discussed their problems and explored
possible solutions. The problems
could be with the police, municipal
corporation, customers, etc. They also
adjudicated disputes among
Dabbawalas using their own system.
The Trust collected Rs. 15 from each
Dabbawala every month to maintain
a welfare fund. These funds were used
to give loans to Dabbawalas, help
them in medical emergencies, meet
the educational costs of their
children, run pilgrim rest houses,
subsidize religious pilgrimages and provide facilities for important occasions like weddings, etc. A
monthly amount was also set aside for a charitable fund to feed the poor.
The Dabbawalas were organized in cooperative groups of 15 to 20 members, and each group
was supervised by four Mukadams. The responsibilities of a Mukadam, who was essentially a
supervisor, involved sorting dabbas, keeping records of payments, settling disputes, sourcing more
customers and training new Dabbawalas. Every group was financially independent but worked
together in the delivery process. Each group sourced their own clients, but one group was not
allowed to undercut another. In 2003, the Dabbawalas charged customers anything between Rs. 150
and Rs. 350 per month for their services. Every month the payments received were shared equally
amongst the members of the group. After expenses, each Dabbawala received between Rs. 5,000
and Rs. 6,000 a month. Their expenses included railway passes12
and rent for handcarts, cycles
and crates.
Newcomers who wanted to become Dabbawalas were initially hired on a salary to gauge their
performance, and later made members of the Trust and assigned to one of the cooperative groups.
Exhibit I: Dabbawalas’ Organizational Structure
Source: The ICFAI Center for Management Research
11
Mukadam is a team leader or supervisor.
12
A railway pass can be obtained by paying a fee to the railway authorities. This can be used to travel on the local trains
in Mumbai without having to buy a ticket every day.
Governing Council
Secretary
President
Mukadams
Dabbawala
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Case Folio July 2004
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To become profit sharing members of the Trust, new Dabbawalas needed to pay a certain amount
to the Trust. This was Rs. 30,000 in 2003. The Trust gave loans to assist them to become members
of the organization. Every member was guaranteed a monthly income and was employed for life.
As there was no retirement age, a Dabbawala worked as long as he was physically fit.
Over the years, primarily family members and relatives of the existing Dabbawalas were inducted
into the business. Of the nearly 5,000 Dabbawalas (2003), most were from the same region and
community, making them a close-knit group. Every year they went to their villages for the “Bhairavnath
Maharaj Utsav”13
festival. That was usually the only occasion for which the Dabbawalas took time off.
Delivery System
The Dabbawala service was available wherever the local trains ran in Mumbai as it was their
primary mode of transportation. During the delivery process, the dabbas changed hands at least
four times before they reached their destination. Every client who availed the service was given a
cylindrical aluminum container (dabba) with the appropriate code painted on the lid. Someone
from the client’s home put the layered lunchbox packed with food into that container. Depending
upon the distance between the client’s home and the nearest railway station and the time taken
to reach the destination (office/school) of the dabba, a collection time was fixed. This was usually
between 8.30 a.m. and 10.30 a.m.
Every day, at the same time, the Dabbawalas collect the dabbas from the clients’ homes. They
take the dabbas to the nearest railway station where a Mukadam sorts the dabbas brought in and
arranges them in crates or trays, according to the destination station. Each Dabbawala takes one
of these trays and boards the train. When he gets off at his destination, another Mukadam re-sorts
the dabbas, along with those brought in by other Dabbawalas assigned to areas near that particular
station. Here, the dabbas that need to be put on another train are taken by the assignedDabbawalas,
and the dabbas that have to be delivered are taken by the Dabbawalas deputed for this task. The
Dabbawalas deliver the dabbas either by walking, using a tray/handcart, or on a bicycle. They
deliver the dabba to the common/reception area of the office/school. The client returns the empty
dabba to the same place. In the afternoon, at about 3.00 p.m., the process is reversed for the
return of the dabbas to the homes of the clients (Refer to Exhibit II for a better understanding of
the delivery system). The delivery system of the Dabbawalas has been compared to a relay race14
and the Internet.15
The Dabbawalas developed their own coding system. The codes enabled each Dabbawala to
identify and fulfill his responsibility at every step in the process. These codes were understood by
the Dabbawalas and no one else. The appropriate code was painted on the lid of the dabba, which
revealed the originating address and station, and the destination station and address. Raghunath
Medge (Medge), President of the Trust, said, “The codes have been developed over the years,
beginning with colored thread and then more systematic and logical codes.”16
When they began
painting codes on the dabbas, they initially used symbols, such as swastikas, dots, crosses, strokes,
dashes, etc., in various colors. Later on, they included alphabets and numbers in their coding. The
new codes were developed by Medge. They used both alphabets and numbers to identify stations,
buildings, floors and Dabbawalas. For example, if the code on a dabba was “P-BO-10-15/A/11,”
13
During this festival, prayers were offered to the god they worshipped, Lord Vithoba, and their patron saint, Dnyaneshwar.
As part of the festivities, bullock cart races and lotteries were held.
14
Baldauff Scott, “It’s Big Mac vs. Bombay’sDabbawallahs,” www.csmonitor.com, July 6, 2001.
15
“The Human Origins of the Internet,” www.sun.com
16
“Mumbai Dabbawalas Ready for the Prince,” www.mid-day.com, October 29, 2003.
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Case Folio July 2004
45
P identified the Dabbawala, BO the suburb, Borivili, where the dabba had to be collected from, 10
represented the area, Nariman Point, where the dabba was to be delivered, and 15/A/11 stood for 15th
building, 11th
floor.17
One Dabbawala claimed, “We often recognize a dabba by its feel, like we would
a familiar slipper.”18
“We generally make one mistake in two months. We can’t afford to make mistakes
too often or else we will be out of business. And our employees understand this reality very well so
they are always very cautious,” said Medge.19
The Dabbawala delivery process was dependent on Mumbai’s local railway which was known
to be the most far-reaching, fast and efficient local train system in India (Refer to Exhibit III for an
idea about the railway network in Mumbai). The trains ran 365 days a year and there was very
rarely any interruption in the service. The only circumstance under which the service was disrupted
was the monsoon when the tracks would get flooded. According to the Dabbawalas, their ability
to successfully run the service in a crowded city like Mumbai could be attributed to its geography
and local train system. Medge said, “Mumbai’s geography makes it unique, it is a longish city
where residences are in the North and offices in the South, so it makes our work simple”20
(Refer
to Exhibit IV for a map of Mumbai City). He also said, “Our people move by local trains and are
able to cover long distances. On cycle, one can cover only a radius of two to three kilometers”.21
Thus, the Dabbawalas use the cheap public transport system to their advantage.
17
Deshpande B Pradeep, “India, Inc., and Six Sigma: If Dabbawallahs Can Do It, You Can Too!,”
www.sixsigmaquality.com/sixsigma_papers.html
18
Karkaria Bachi, “The Dabba Connection,” www.uppercrustindia.com
19
Chatterjee Sumeet, “Dabbawallahs:Lifeline of Mumbai’s Working People,” Indo-Asian News Service, www.yahoo.com,
September 20, 2002.
20
Diwanji K Amberish,“Dabbawallahs: Mumbai’s Best Managed Business,” www.rediff.com, November 4, 2003.
21
Lakshman Nandini, “Mumbai’s Dabbawallahs, Flavor of theSeason,” www.rediff.com, November 15, 2003.
Exhibit II: Dabbawalas’ Delivery System
Stage I
The
Dabbawalas
collect the
dabbas from the
clients and take
them to the
nearest railway
station.
Stage II Stage III Stage IV
At the station, a
Mukadam sorts
the dabbas
according to
their destination
and arranges
them in trays/
crates. The
Dabbawalas
take their
consignments
and get on the
train.
The
Dabbawalas
get off at their
respective
stations where
a Mukadam
re-sorts the
dabbas, along
with the dabbas
brought by
other
Dabbawalas
from the
surrounding
area. The
dabbas are
grouped
according to
area of
delivery.
The
Dabbawalas
take their
consignments
and deliver the
dabbas to each
client's office
or school.
Deliveries are
made either by
walking, using
a tray/handcart,
or on a bicycle.
Source: The ICFAI Center for Management Research
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Case Folio July 2004
46
Will the Dabbawalas Continue to Feed the Hungry?
The Dabbawalas have been in service for more than a hundred years, surviving the many changes
in the city of Mumbai. However, the changing environment was threatening the survival of the
Dabbawalas. “The second generation does not want to get into this business as the returns are not
much,” said one Dabbawala.22
SomeDabbawalas felt that there was danger of the business eventually
dying out as they are unable to attract new recruits from within their families and relatives who
had traditionally been their main source of recruitment.
Exhibit III: Railway Network in Mumbai
Source: www.mumbainet.com
22
Lakshman Nandini, “Mumbai’s Dabbawallahs, Flavor of theSeason,” www.rediff.com, November 15, 2003.
ENTREPRENEURSHIP
Case Folio July 2004
48
There are more and more two-income families now, with the increase in women’s employment.
As a result, wives do not stay home or have time to prepare elaborate meals. They either prepare
small and quick lunches for themselves and their spouse to carry or they eat out. The demand for
the service of the Dabbawalas has also come down as many organizations have started giving free
lunch vouchers to their employees. These vouchers are used at their office cafeteria to buy lunch,
thus eliminating the need for the Dabbawalas’ service. Also, many working people do not have
time to eat an elaborate lunch and so just grab a quick bite. In Mumbai, there are many options
for a person who wants to eat out and all types of cuisine are available, with the growth of fast food
centers that sell Indian food and Western fast food centers like Mac Donald’s, Pizza Hut and
Dominos. In addition, most restaurants and fast food places deliver food. But according to Medge,
“There is no prospect of our business suffering on account of the fast food joints because Mumbai’s
conservative middle classes remain skeptical of what is described as outside food.”23
Most Dabbawalas are of the opinion that their services will always be needed. Firstly, there are
people from different communities, castes and religions in Mumbai. Their cuisine is unique to
them and often what they can or cannot eat is dictated by their caste or religion (for example,
Jains do not eat garlic and onions, Brahmins are strict vegetarians, and Muslims do not eat pork).
Therefore, food can be prepared to their individual tastes only by a parent, spouse or their own
cook. Secondly, there are an increasing number of people who are diet conscious and feel that
restaurant food and fast food is very unhealthy because of all the fat and processed ingredients.
Thirdly, there are people who feel that the food available in the cheap fast food places is unhygienic.
To skeptics who believed that the Dabbawalas are a dying breed, Medge retorted, “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 hungry, the Dabbawala will be there.”24
Suchitra Jampani,
Faculty Associate, The ICFAI Center for Management Research.
Sanjib Dutta,
Faculty Member, The ICFAI Center for Management Research.
References
1. Chakravarty Subrata N and Karmali Naazneen, Fast Food, August 10, 1998, www.forbes.com
2. Jacobson Doranne, Doing Lunch, March 2000, www.findarticles.com
3. Unnithan Sandeep, Delivering Goods, May 31, 2001, www.lists.cs.columbia.edu
4. Now ‘dabbas’ Join the Ad Club, December 27, 2001, www.responservice.com
5. Reporters on the Job, www.csmonitor.com
6. Harding Luke, A Bombay Lunchbox, June 24, 2002, www.tiffinbites.com
7. India Inc Takes Some Time Off to Applaud India Invisible, September 19, 2002,
www.indianexpress.com
8. The Food Chain, August 19, 2002, www.india-today.com
9. Chatterjee Sumeet, Dabbawallahs: Lifeline of Mumbai’s Working People, September 20, 2002,
www.in.news.yahoo.com
23
Chatterjee Sumeet, “Dabbawallahs: lifeline of Mumbai’s working people,” Indo-Asian News Service, www.yahoo.com,
September 20, 2002.
24
Lakshman Nandini, “Mumbai’s Dabbawallahs, flavour of the season,” www.rediff.com, November 15, 2003.
ENTREPRENEURSHIP
Case Folio July 2004
49
Questions for discussion
1. The Dabbawalas have been in service for more than 100 years. What lessons on
entrepreneurship can one learn from them?
2. The Dabbawala service achieved a Six Sigma level of performance without using any
technology or elaborate processes. How do you think they were able to attain that level of
efficiency?
3. What are the challenges being faced by the Dabbawalas? How can they ensure their
existence in the future?
Reference # 14M-2004-07-07-02
10. Indian Glimpses, September 28, 2002, www.baroda-online.com
11. Kataria Sunil, Dabbawallahs Deliver with No Hiccups, February 12, 2003,
www.lists.cs.columbia.edu
12. The Charioteers of Meals, www.jetairways.com/jetwings_June_03/
13. Mashelkar R A, India, with a Can-do Spirit, August 26, 2003, www.indianexpress.com,
www.hvk.org/hvk/articles/0903/
14. American Association of State Highway and Transportation Officials’ Luncheon Address,
June 9, 2003, www.freight.transportation.org
15. Dsouza Lajwanti, Mumbai Dabbawallas Lecture at IIMs, October 15, 2003, www.mid-day.com
16. Mumbai Dabbawallas Ready for the Prince, October 29, 2003, www.mid-day.com
17. Panda Manoj, Mumbai’s Dabbawallahs, November 3, 2003, www.lists.cs.columbia.edu
18. Diwanji Amberish K, Dabbawallahs: Mumbai’s Best Managed Business, November 4, 2003,
www.in.rediff.com/news/
19. Harley Jonathan, India – Bombay Lunchbox, www.abc.net
20. Thakraney Anil, Dabbawala for CEO? November 9, 2003, www.chalomumbai.com
21. Lakshman Nandini, Mumbai’s Dabbawallahs, Flavor of the Season, November 15, 2003,
www.rediff.com
22. Malhotra Umesh, The e-Dabbawalla, www.e1947.com
23. Karkaria Bachi, The Dabba Connection, www.uppercrustindia.com
24. The Human Origins of the Internet, www.sun.com/executives/digitaljourney/stories/
25. Curran Ann, Videos about Work and Workers, www.cmu.edu/magazine/02summer
26. WQED Multimedia Pittsburgh, www.wqed.org
27. Special Bronze Dabba Awaits Prince Charles, www.headlines.sify.com
28. Luthra Jagdeep, Be a Layman to Understand Logistics, www.safexpress.com
29. Morris Bob, Dead Medium: Dabbawallah Delivery Service, www.deadmedia.org
30. Scott Baldauf, It’s Big Mac vs. Bombay’s ‘dabbawallahs’, www.csmonitor.com
31. Deefholts Margaret, The Dabbawallahs of Mumbai, www.travel-wise.com
32. Lulla, Suresh, Failures per Million, www.qimpro.com
33. Deshpande Pradeep B, India Inc., and Six Sigma: If Dabbawallahs Can Do It, You Can Too!
www.sixsigmaquality.com/sixsigma_papers.html