The authors tell the story of a democratic workers' cooperative that makes hand-rolled cigarettes known as "beedis," in the unorganized sector of a fiercely competitive capitalist economy in India. The authors analyze the major features of the cooperative, assessing its overall structure, worker-elected management, shop floor democracy, and progress in providing a better life for its worker-owners. Tensions are also discussed, including the complaints of women workers and the need for diversification from tobacco.