The Dabbawallas of Mumbai
Amit Rangnekar NMIMS PhD 2004
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Quotes
• "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, Sep2006Belief- 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, Sep2006Efficiency
• Zero % fuel
• Zero % investment
• Zero % modern technology
• Zero % Disputes
• 100 % Customer Satisfaction
th
• Average education levels- 8 Standard
• 50% illiterates
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Operations
• 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, Sep2006Results
• 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, Sep2006The Need
th
• Late 19 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, Sep2006The 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, Sep2006The 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, Sep2006The 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, Sep2006Getting 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, Sep20061970s
• 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, Sep20061980s
• 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, Sep20061990s +
• 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, Sep2006Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Key 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, Sep2006ORGANISATIONAL 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, Sep200660%
30%
10%
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Wartime: Emergency measures being taken to ensure delivery
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Prime-time
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Origin station Destination station
12 coach train, 4,000 commuters
12 coach train, 4,000 Sorting at Churchgate
8,000 disputes, But no excuses, commuters, 8,000 disputes, no
excuses, duty firstDuty first Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Sorting
• 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, Sep2006Distribution
• 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, Sep2006Reverse 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, Sep2006What'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, Sep2006Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Binding 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, Sep2006Code 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, Sep2006Financials
• 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, Sep2006Adaptations / 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, Sep2006CSR
• 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, Sep2006Strategic 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, Sep2006Challenges
• 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, Sep2006Key drivers
• Committed workforce
• Stakeholders faith
• Teamwork
• Operational flexibility
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Sustainable Advantage
• Mumbai's efficient rail network
• Simplicity and scalability of operations
• Employees as shareholders
• Economy pricing deters corporates
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Opportunities
• 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, Sep2006Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Opportunities, Challenges & Options
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006Are 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, Sep2006With their most famous student
Amit Rangnekar, NMIMS-PhD-2004
Copenhagen, Sep2006