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Nirma is one of the few names - which is instantly recognized as a true Indian brand, which took on mighty multinationals

and rewrote the marketing rules to win the heart of princess, i.e. the consumer. Nirma, the proverbial Rags to Riches saga of Dr. Karsanbhai Patel, is a classic example of the success of Indian entrepreneurship in the face of stiff competition. Starting as a one-man operation in 1969, today, it has about 14, 000 employee-base and annual turnover is above Rs. 25, 00 crores. India is a one of the largest consumer economy, with burgeoning middle class pie. In such a widespread, diverse marketplace, Nirma aptly concentrated all its efforts towards creating and building a strong consumer preference towards its value-for-money products. It was way back in 60s and 70s, where the domestic detergent market had only premium segment, with very few players and was dominated by MNCs. It was 1969, when Karsanbhai Patel started door-to-door selling of his detergent powder, priced at an astonishing Rs. 3 per kg, when the available cheapest brand in the market was Rs. 13 per kg. It was really an innovative, quality product with indigenous process, packaging and low-profiled marketing, which changed the habit of Indian housewives for washing their clothes. In a short span, Nirma created an entirely new market segment in domestic marketplace, which is, eventually the largest consumer pocket and quickly emerged as dominating market player a position it has never since relinquished. Rewriting the marketing rules, Nirma became a one of the widely discussed success stories between the four-walls of the B-school classrooms across the world. The performance of Nirma during the decade of 1980s has been labelled as Marketing Miracle of an era. During this period, the brand surged well ahead its nearest rival Surf, which was well-established detergent product by Hindustan Lever. It was a severing battering for MNC as it recorded a sharp drop in its market share. Nirma literally captured the market share by offering value-based marketing mix of four Ps, i.e. a perfect match of product, price, place and promotion. Now, the year 2004 sees Nirmas annual sales touch 800,000 tones, making it one of

the largest volume sales with a single brand name in the world. Looking at the FMCG synergies, Nirma stepped into toilet soaps relatively late in 1990 but this did not deter it to achieve a volume of 100,000 per annum. This makes Nirma the largest detergent and the second largest toilet soap brand in India with market share of 38% and 20% respectively. It has been persistent effort of Nirma to make consumer products available to masses at an affordable price. Hence, it takes utmost care to provide finest products at the most affordable prices. To leverage this effort, Nirma has gone for massive backward integration along with expansion and modernization of the manufacturing facilities. The focal objective behind modernisation plan is of up gradation with resourcesavvy technology to optimise capabilities. Nirmas six production facilities, located at different places, are well equipped with state-of-art technologies. To ensure regular supply of major raw materials, Nirma had opted for backward integration strategies. These strategic moves allowed Nirma to manage effective and efficient supply-chain. Nirma has always been practiced value-for-money plank. Nirma plans to extend the same philosophy in categories as commodity food products, personal care products and packaged food. Distinct market vision and robust infrastructure allowed Nirma to have cost leadership. Apart from this, lean distribution network, umbrella branding and low profile media promotions allowed it to offer quality products, at affordable prices. In present scenario, an inspiring 59-year-old persona, Dr. Karsanbhai K. Patel, leads Nirma, playing role of key strategic decision-maker, whereas his next generation has already skilled management capabilities. Shri Rakesh K Patel a qualified management graduate, is spearheading the procurement, production and logistic functions, whereas Shri Hiren K Patel a qualified Chemical engineer and management graduate, heads the marketing and finance functions of the organisation. Shri Kalpesh Patel, Executive Director, leads the professional organisational structure. The man behind the success of Nirma phenomenon Dr. Karsanbhai Patel is a recipient of various awards and accolades. He has been bestowed with various awards like

Udyog Ratna by Federation of Association of Small-Scale Industries of Gujarat, New Delhi. Outstanding Industrialist of Eighties by Gujarat Chamber of Commerce and Industry, Ahmedabad (in 1990). Gujarat Businessman Award in 1998 by Gujarat Chamber of Commerce and Industry, Ahmedabad. Excellence in Corporate Governance Award by Rotary International District 2000. A&M Hall of Fame,

Shri Karsanbhai has been awarded an Honorary Doctorate by Florida Atlantic University, Florida, USA in the year 2001 in recognition of his exceptional accomplishments as a philanthropist and businessman. This world has also recognised his ability, acumen and wisdom and in recognition of the services rendered by him in his various capacities. Dr. Karsanbhai Patel has also served as a Chairman for two terms to the Government of Indias Development Council for soaps and detergents, as a Member of Bureau of Indian Standards Committee for Soaps and Detergent Industries and President of Gujarat Detergent Manufacturers Association. Nirma is a customer-focused company committed to consistently offer better quality products and services that maximise value to the customer. This customer-centric philosophy has been well emphasised at Nirma through:

Continuously exploring & developing new products & processes. Laying emphasis on cost effectiveness. Maintaining effective Quality Management System. Complying with safety, environment and social obligations. Imparting training to all involved on a continuous basis. Teamwork and active participation all around. Demonstrating belongingness and exemplary behaviour towards organisation, its goals and objectives.

Nirma is a phenomenon and synonymous with Value for Money. The brand transcends the specific dynamic of any particular product category, which is best captured in its above mission statement - a statement of sustained innovation, an

unceasing effort to deliver better value to consumers, through better product quality.

Success story of NIRMA


The nirma success story of how an Indian Entrepreneur took on the big MNCs and rewrote the rules of business : It was in 1969 that Dr. Karsanbhai Patel started Nirma and went on to create a whole new segment in the Indian domestic detergent market.During that time the domestic detergent market only had the premium segment and there were very few companies , mainly the MNCs , which were into this business. Karsanbhai Patel used to make detergent powder in the backyard of his house in Ahmedabad and then carry out door to door selling of his hand made product.He gave a money back guarantee with every pack that was sold.Karsanbhai Patel managed to offer his detergent powder forRs. 3 per kg when the cheapest detergent at that time was Rs.13 per kgand so he was able to successfully target the middle and lower middle income segment.

Sabki Pasand Nirma


Nirma became a huge success and all this was a result of Karsanbhai Patels entrepreneurial skills. Karsanbhai Patel had good knowledge of chemicals and he came up with Nirma detergent which was a result of innovative combination of the important ingredients.Indigenous method was used ,and also the detergent was more environment friendly. Consumers now had a quality detergent powder , having an affordable price tag. The process of detergent production was labour intensive and this gave employment to a large number of people.Nirma focused on cost reduction strategies to make a place for itself in the market.Nirma has always been known for offering quality products at afforbable prices and thus creating good value for the consumers money.

In the 1980s nirma moved ahead of Surf , a detergent by HLL , to caputre a large market share.Later, Nirma successfully entered in the premium segment of soaps and detergents.Nirma went on to become the largest detergent and the second largest soap company in India.Nirma had more than 35% market share in the detergent segment and around 20 % market share in the toilet soap segment.The company got listed on the stock exchanges in the year 1994. Nirma adopted backward integration strategy for the regular supply of raw materials,90 % of which they manufacture themselves.Nirma also gave due importance to modernization ,expansion and upgradation of the production facilities.The company also made sure that it uses the latest technology and infrastructure. As far as Corporate social responsibility (CSR) is concerned, Nirma has made some good efforts by starting Nirma Education & Research Foundation (NERF) in the year 1994 for the purpose of running various educational institutes.Nirma has also set up Nirma labs , which prepares aspiring entrepreneurs to effectively face the different business challenges.Nirma also runs Nirma Memorial Trust ,Nirma Foundation and Chanasma Ruppur Gram Vikas Trust as a part of their effort as a socially responsible corporate citizen. The company that was started in 1969 with just one man who used to deliver his product from one house to the other,today employs around 14 thousand people and has a turnover of more than $ 500 million. In 2004 Nirmas annual sales were as high as 800000 tonnes.According to Forbesin 2005 Karsanbhai Patels net worth was $ 640 million

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