Dabbawalas eye consultancy biz

To offer consultancy services on logistics management as a separate revenue stream.

When Prince Charles wanted to meet them during his visit four years ago, they allotted him only 20 minutes at Churchgate station.

The Mumbai-based dabbawalas (literally "box-men"), best known for a high six sigma performance rating by management guru C K Prahalad, told the prince they could not keep their 2,00,000 "kings" (customers) waiting for their daily lunch box at their offices. Charles, touched by their professionalism, invited their representative to attend his second marriage in London.

Now, the dabbawalas are all set to offer consultancy services on logistics management as a separate revenue stream.

Speaking on the sidelines of SME Logistics seminar organised by ICICI Bank, Nutan Mumbai Tiffin Box Supply Charity Trust's President Raghunath D Medge told Business Standard: "We are exploring options of presenting our successful management practices to the Indian corporate houses. This could be as part of a consultancy business division to enhance our other sources of income."

Dabbawalas have made presentations to various corporate houses, banking firms and consulting majors. These include Reserve Bank of India, Union Bank of India, ICICI Bank, Kirloskar, Finolex, Mico, Accenture, ING Vysya Bank, Godrej, Coca-Cola and Daimler Chrysler, among others.

The dabbawalla supply chain has also become a favourite case study in B-schools such as the Indian Institutes of Managements in Ahmedabad and Bangalore, the Indian School of Business, Hyderabad and ICFAI.

"Now, we would like to make our presentation before industry houses like Tata Group and Reliance Industries," Medge added.

The error rate in delivering tiffin boxes for dabbawallas is 1 in 16 million transactions and registered a six sigma performance at 99.999999 rating. Six sigma is a system to achieve zero-defect operating environment.

The business model of dabbawalas is different from others. "We work on zero fuel (using bicycle & train), zero modern technology, zero investment and zero disputes. No alcohol is permitted during business hours and our workers should wear a white cap. A member has to pay a fine of Rs 1,000 if he violates the no-alcohol rule or takes a day's leave without notice," Medge said.

However, according to the trust's secretary Gangaram L Talekar dabbawallas have no plans to list the entity on the bourses.

"Our turnover will touch Rs 45 crore this year as we have increased the prices of tiffin by Rs 30 per unit. Though we need more money, we have no plans to list or corporatise the trust now. We will grow as our clientele grows," Talekar said.

According to Atul Kulkarni, senior manager (consulting) of Delitte Touche Tohmatsu India, dabbawalas are guided by basic management principles and systematic approach that minimises the confusion and enhanced the efficiency of resources.

"Corporations use technology for implementing certain principles. But if you are directly implementing the principles, there is no need for technology. Indian Inc may not replicate the dabbawalas experience, but they can definitely adopt its principles," Kulkarni said.

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MUMBAICHA DABBAWALA Established in 1890

Turned into charitable trust in 1956

5,000 shareholders (tiffin carriers)

Covers 60-70 km of Mumbai

2,00,000 tiffin boxes per day (4,00,000 transactions)

Pick-up to delivery time: 3 hours

Members earn Rs 5000 to 6000 per month

Tiffin priced between Rs 300 to 350 a month

Each member handled nearly 35 tiffins a day

Gets 1 month salary as Diwali bonus

Expected turnover this year: Rs 45 crore