Apna Bazaar- consumer co-operative society

by Pooja Shrimali on Monday 3 January 2011, 11:50 PM | Category: Operations| View: 12604 views


Consumer Co-operative Societies

Consumers are unorganized and therefore exploited by traders in price, quality and weight. Consumer co-operatives protects the interests of consumers against artificial scarcity, over charging of prices, supply of sub standard goods and the unfair trade practices distorted by private traders.


Maharashtra Co-operative Societies Act, 1960, defines consumer co-operative society as a society, the object of which is:

  • The procurement, production or processing and the distribution of goods to or, the performance of other services for its members as also other consumers.
  • The distribution among its members and customers, of the profit occurring from such procurement, production, processing and distribution are in proportion as prescribed by rules or bye-laws of the society.
  •   A consumer co-operative society is basically formed for the promotion of the interests of the consumers.

 Objectives of consumer co-operatives:

  •  To educate the consumers to keep their needs within the income limit.
  •  Stabilization of market rates.
  • To supply the goods and services regularly at reasonable costs.
  • To protect the consumers from black marketing, increase in market rates, scarcity, cheating and adulteration.
  • To supply proper unadulterated goods and to use proper measurement (weighing scales).
  • To inculcate the habit of savings and economy among the consumers.
  • To control the profit-making tendency

 Apna Bazaar

 Apna Bazaar Co-operative was started on 1st May 1948 as a small departmental store at Naigoan, Mumbai. In the early period of post independence era, cloth purchase was on the rationing basis and many restrictions such as import ban were imposed by the British Government were still continued. To overcome these obstacle mill workers in Mumbai organized grocery and cloth store by collective an effort which was named as Mumbai Kamgar Madhyawarti Grahak Sahakari Mandal Ltd. Shri Dadasaheb Sarfare was the core person behind the founding, organizing and upliftment of this co-operative society. Gradually year after year this store was developed into 7 department stores. The mill workers used to spare time from their shifting duties and devote themselves in contributing to the functions of this cooperative to meet its objective of satisfying food and clothing needs of the lower middle class people dwelling in the south of Mumbai city.

During years later many members purchased shares and invested gradually resulting into tremendous expansion and diversification of the organization. At present the administrative and departmental store at Naigaon is 34 years old.


Apna Bazaar is probably the oldest and largest consumer co-operative multi-state society with a customer base of over 12 lakhs. The Rs 140-crore retail chain, that, for over 55years remained largely “middle-class”, Apna Bazaar has 80 outlets in Mumbai, Thane and the neighboring Konkan region. It has recently opened its first shop outside the state in Goa. It recorded a turnover of Rs 127 crore for the year 2003-04.

Role of Apna Bazaar:

Apna bazaar plays a vital role by market intervention during the shortages of essential commodities. The distribution of these items is taken up by the Apna Bazaar at a loss to fulfill its social commitments. At times of need, Apna Bazaar has diverted its manpower and resources, even at the cost of its own commercial interest, for the public good.

Departmental stores                     8
Medical stores                                 4
Supermarkets 7
Franchisee stores                         37
Food stores                                   24




Objectives of Apna Bazaar

  • To undertake wholesale and retail distribution of consumer goods and essential commodities; and to establish department stores; 
  •  To foster the growth products and new manufacturing units through market support and management advic  
  •  To lower distribution costs and to introduce fair and better trading practices such as fixed prices etc. 
  •  Eradication of malpractices of traders black marketing, artificial scarcity, cheating in measurements, adulteration, etc.  
  •  Necessity of time – public distribution of essential commodities in rural and urban areas. 
  • Elimination of middlemen.

Management and Organization:

  • Apna Bazaar is headed by a management team comprising a chairman, vice chairman and Hon secretaries. The team largely provides direction to the organization and is not involved in the day-to-day affairs. The day-to-day affairs are managed by an executive team, which consists of a general manager, additional general manager and office bearers of the organization.


Apna Bazaar has a customer base of over 12 lakhs. Apna Bazaar has 80 outlets in Mumbai, Thane and the neighboring Konkan region. It has recently opened its first shop outside the state in Goa. The breakup of the stores is:


Items Sold By Apna Bazaar 

Apna Bazaar has the following three main categories of items:

  • a. Agro products
  • b. Branded products
  • c. Rural products

Apna Bazaar sells an immense variety of items through its various departments/retail outlets. These are described below: -


  • Furniture:All type of woodenfurniture, steel furniture library furniture,hospital furniture, revolving chairs, computer furniture, mattresses, pillows, sofa cushion. 
  •  Household: Steel utensils, aluminum utensils, non stock, gas stoves, locks, mixer-grinder, juice-cum-mixer grinder, hot-cases, room heater, room convector, geysers, all type of fans, electrical goods, washing machine, air-conditioners, water cooler, voltage stabilizer, generator set, crockery, flasks, plastic items, electrical bulb/tubes and tube fittings, table lamp, emergency light, cell, torch, electric wire, desert cooler, exhaust fans. 
  •  Footwear:Shoes, sandals, ladies purse, belt, umbrella, school, bag, suit cases, brief cases, file box, file bag, luggage bag. 
  •  Textile:Woolen suiting, tricot suiting and shirting, blanket, blazer, bed-sheets, pillow cover, dress material, all types of sarees long cloth, mulmul, khadi etc. 
  •  Handloom:Towels, dusters, curtain cloth, bed-covers, carpets, quilt, durries, jute matting, blankets, pillow covers, door-mats, PVC flooring. 
  •  Ready Made Garments:Pants, shirts, undergarments, socks, sweaters, leather jackets, ladies suits, petticoats, children garments, rain coats, over-coats, mosquito mat, curtain tapes, machine oil. 
  • Stationery:All types of duplicating, typing, photocopies paper, printing paper, all types of rules registers in different sizes peon books, desk pads, pens, pencils, pen stands, eraser, markers, sign pens, gum-bottles scales, colours, art material, sealing wax, white fluid, stencil and carbon paper, all type of computer stationery, butter paper, crepe paper, glaze paper, graph paper, file covers, log books, all type of printed forms (Govt. offices),PVC sheet for binding purposes, transparency sheets, ledgers, cash books calculators, computer floppy, fax roll, typewriting ribbon, ammonia paper rolls.  
  •  Watches:Watches of reputed companies like Titan are available in apna bazaar.
  •  Grocery & Toiletries:Pulses, spices, Atta, rice, oils, tea leaves, and various other edible items, insecticides, disinfectants, phenyl, detergents, soaps, cosmetics, tissue rolls and napkins etc. 
  •  Medical & Surgical Equipment:All types of medicines, medical & surgical equipment etc  

Members Benefits:

  •  Dividend on shares at 12% to individuals, society and government.
  • Purchase rebate on share amount 10% each year.
  •  Attractive rate of interest up to 9% on fixed deposit by the members

Facilities Offered By Apna Bazaar to Consumers:

  • Quality products at reasonable prices.
  •  Variety of items under one roof.
  •  24 hours drugs outlets.
  • Self-service counters
  • Items of high quality tested by its quality- testing laboratory.
  •  Display boards and price lists at various counters to enable the customer to make his/her choice.
  •  Home delivery, but this facility is only available for purchase from branches.
  •  Discount sales periodically on various items


The location for the store is selected taking in consideration the residential population in the area, the standard of living of the people, the amount of business the other shops are doing and also future development that are likely to take place in that area in future.

Area covered:

Apna Bazaar has 80 outlets in Mumbai, Thane and the neighboring Konkan region. It has recently opened its first shop outside the state in Goa. However the density of Apna Bazaar is high in Naigoan and Chembur

Target segments:

The store was started keeping in mind the lower middle class section of the society. But gradually it has moved up the consumer ladder with the inclusion of the middle class as its target consumer. Now slowly it is drawing the upper class towards it. It now caters to almost all the segments of the society depending on the location. In order to attract the upper class & to combat growing competition in the retail industry changes are being made.

Product Display:

The brands are displayed in a very attractive manner .The decision to place a Brand on a particular shall depends upon the Market share enjoyed by the company /Brand. Usually there are 5 Shelves. Out of which 2nd,3rd&4th shelves are most important ones on which the brand with high market share or high brand equity are placed. These products are always in demand by the customers.

Sources of Income:

  • Retailing is their core activity and a major part of their income come from the various retail outlets.
  • They supply commodities like Dal, Pulses, Food grains, Cereals to Govt. Institutions, Hospitals for their Canteens. A 30 Days credit is given to them.
  •  They also earn income from the company racks that they display in their outlets. These racks contain the products of the particular company and the in turn pays Apna Bazaar for displaying these racks. E.g. Maggie, Colgate, Pepsodent, Vicks, Nescafe etc.
  •  They provide space to companies e.g. MEPL (Electronic goods) in order to display and sell their goods by charging rent for space provided.
  •  Provide place to banks for opening ATM center by charging rent since almost all the outlets are owned by Apna bazaar.  

SWOT Analysis:

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