Nirma

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Nirma Limited

Type	Public
Founded	1969
Headquarters	Ahmedabad
Key people	Karsanbhai Patel (CMD)
Industry	FMCG
Products	Nirma detergent, Nima soaps
Revenue	Rs. 2500 crores (2005)
Net income	???
Employees	14000
Website	www.nirma.co.in

Nirma is a group of companies based in the city of Ahmedabad in western India manufacturing products ranging from cosmetics, soaps, detergents and salt. Karsanbhai Patel, a well known businessman, industrialist and philanthropist of Gujarat, started Nirma as a one-man operation. Today Nirma has 14000 employees and a turnover of Rs. 2500 crores. In 2004, Nirma's annual sales touched 800,000 tonnes.

1 Major plants
2 See also
3 References
4 External links

[edit] Major plants

Soda Ash
Linear Alkyl Benzene
Packaging
Soaps
Detergents
Industrial Salt
Alfa Olefin Sulfonate
Sulfuric Acid
Glycerin
Single Super Phosphate

http://www.icmr.icfai.org/casestudies/The%20Nirma%20Story1.htm

The Nirma Story “It all started to earn a side income, and at that stage, I had never imagined this kind of success.” - Karsanbhai Patel, CMD, Nirma Ltd. “Like other FMCGs, we have not concentrated only on marketing strategy. From the very beginning, operational strategy in cost containment, backward integration, economies of scale, innovative production, packaging and penetration schemes have received equal attention.” Hiren K Patel, CMD, Nirma Consumer Care Ltd. (Nirma’s marketing arm). In the early 1970s, when Nirma washing powder was introduced in the low-income market, Hindustan Lever Limited (HLL)[1] reacted in a way typical of many multinational companies. Senior executives were dismissive of the new product: “That is not our market”, “We need not be concerned.” But very soon, Nirma’s success in the detergents market convinced HLL that it really needed to take a closer look at the low-income market.

Starting as a one-product one-man outfit in 1969, Nirma became a Rs 17 billion company within three decades. The company had multi-locational manufacturing facilities, and a broad product portfolio under an umbrella brand – Nirma. The company’s mission to provide, “Better Products, Better Value, Better Living” contributed a great deal to its success. Nirma successfully countered competition from HLL and carved a niche for itself in the lower-end of the detergents and toilet soap market. The brand name became almost synonymous with low-priced detergents and toilet soaps. However, Nirma realized that it would have to launch products for the upper end of the market to retain its middle class consumers who would graduate to the upper end. The company launched toilet soaps for the premium segment. However, analysts felt that Nirma would not be able to repeat its success story in the premium segment.

In 2000, Nirma had a 15% share in the toilet soap segment and more than 30% share in the detergent market. Aided by growth in volumes and commissioning of backward integration projects, Nirma’s turnover for the year ended March 2000 increased by 17% over the previous fiscal, to Rs. 17.17 bn. A HUMBLE BEGINNING In 1969, Karsanbhai Patel (Patel)[2] , a chemist at the Gujarat Government's Department of Mining and Geology manufactured phosphate free Synthetic Detergent Powder, and started selling it locally. The new yellow powder was priced at Rs. 3.50 per kg, at a time when HLL’s Surf was priced at Rs 15. Soon, there was a huge demand for Nirma in Ruppur (Gujarat), Patel’s hometown. He started packing the formulation in a 10x12ft room in his house. Patel named the powder as Nirma, after his daughter Nirupama. Patel was able to sell about 15-20 packets a day on his way to the office on bicycle, some 15 km away. Thus began the great journey. By 1985, Nirma washing powder had become one of the most popular detergent brands in many parts of the country.

By 1999, Nirma was a major consumer brand – offering a range of detergents, soaps and personal care products. In keeping with its philosophy of providing quality products at the best possible prices, Nirma brought in the latest technology for its manufacturing facilities at six places[3] in India. Nirma’s success in the highly competitive soaps and detergents market was attributed to its brand promotion efforts, which was complemented by its distribution reach and market penetration. Nirma’s network consisted of about 400 distributors and over 2 million retail outlets across the country. This huge network enabled Nirma to make its products available to the smallest village.

In November, 2007, Nirma purchased the American raw materials company Searles Valley Minerals Inc..^[1]