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Maharaja Agrasen Institute Of Technology

Presentation on theJOURNEY OF NIRMA

Presented by:Ritesh GargMBA 2B

INTRODUCTIONNirma group of companies emerged in a city of AHMEDABAD in western india that manufactures products ranging from Cosmetics Soaps Detergents Salt Soda ash Injectiles and many more

MISSION

Better products Better valueBetter living

COMPANY PROFILE

TYPE: PUBLICINDUSTRY: FMCGFOUNDED: 1969HEADQUARTERS: AHMEDABADKEY PEOPLE: KARSANBHAI PATELPRODUCTS: Nirma detergents, soapsREVENUE: Rs. 3504 crore (2011)EMPLOYEES: 14000COMPETITORS: HLL, Surf, Jyothy laboratories, EmamiMARKET SHARE: 15% in soap segment & 30% in detergent segment

INDUSTRIAL PRODUCTSLAB( linear Alkyl Benzene)AOS( Alfa Olefin Sulfonate)Sulphuric AcidGlycerineSoda AshPure SaltVacuum Evaporated Iodized SaltSodium Silicate

THE JOURNEY

FOUNDER OF NIRMA:DR. KARSANBHAI PATEL, son of a small time farmer who was working as a chemist at the Gujarat Governments Department of Mining and Geology manufactured phosphate free Synthetic Detergent Powder in Kishnapur (Gujarat) using bare hands and bucket.

In the beginning years, he started the production and packaging work in his backyard and in a 10x12ft room in his house.

At early stage he used bicycle to sell about 15-20 packets a day on his way to office some 15 km away.

He named the powder as Nirma after his daughters name NIRUPAMA.

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SUCCESS BATTLE OF NIRMAIn 1970s, when Nirma washing powder was introduced in the low-income market, Hindustan Lever Limited(HLL) signified that it didnt consider Nirma as its competitor by remarking That Is not our market. But Nirma successfully overtook a huge share of the market from HLL within a very limited span of time.But after its popularity in low-income market, HLL was convinced that it really needed to take a closer look.But by then it was too late and within three decades Nirma became RS.17 BILLION COMPANY.

Initially, the advertising cost spent on the company was very low in comparison to other FMCG companies.

The reason behind it was that Nirma always preferred to follow some basic steps:

to place the product on the shelves firstreceive feedback, and then create an enduring ad campaign.

For instance, North preferred PINK soaps while the South preferred GREEN soaps.

The brand name became almost synonymous with low-priced detergents and toilet soaps.After its success in low-income market Nirma realized that it would have to launch new products for the upper end of the market.So company launched toilet soaps for the premium segment. By1999 , Nirma became Indias second largest manufacturer of toilet soaps .

. In 2000, share of Nirma in toilet soap segment was 15% and it increased to more than 30% share which was above the expectation of the analysts.. At the end of march 2000 Nirmas turnover increased by 17% over the previous fiscal, to RS.17.17 billion.

. In 1985, Nirma washing powder had become one of the most popular detergent brands in many parts of the country and had an 80% share in the product market.. By 1999,Nirma was a major consumer brand-offering a range of detergents soaps and personal care products.

One of d major reason behind the success of Nirma was that it curtailed its costs of distribution by eliminating intermediaries.

.The TECHNOLOGY for this plant was sourced from Inter America, USA.

majorPRODUCTS OF NIRMA CO.

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NIRMA proved to be the best example for exploding the myth that: BETTER QUALITY ALWAYS DEMANDS HIGHER PRICE

Priced almost 40% lesser, it provided a very attractive VALUE FOR MONEY PROPOSITION.Moreover, by 1996,its powder was available in 25g, 500g and 1000g Packs. This product out-classed its competitor brands.

It was manufactured with state-of-art production facilities , using the vacuum dying process, is the only salt in the country to be manufactured in an entirely automated plant and is free from any manual heading, involved at any stage of manufacturing.

Workers working in washing powder factory

. Unlike the economy products, where the cost benefits were passed on to the consumers, Nirma passed on this benefit to the retailers. It gave them huge margins.

Nirma used to sell its product at very low prices but rather than this turning out to be an advantage people considered Nirma to be a cheap brand and people were ashamed to admit that they were using nirma.

To shed this image, in the Nineties, Nirma released corporate advertisements worth Rs 10 bn throughout India.

MISCONCEPTION

. The main reason of the brand promotion of Nirma was its wide range of its distribution market penetration and network consist of 400 distributors and over 2 million retail outlets across the country .. Within a short span, Nirma had completely rewritten the rules of the game, by offering good quality products at an unbeatable price.. After establishing itself in India, Nirma expanded to Markets abroad in 1999.

Its first foray was into Bangladesh, through a joint Venture-Commerce Overseas Limited.

Within a year, the brand became the leader in the detergent market in Bangladesh and Planned to enter other regions like the Middle East,China, Russia, Africa and other Asian countries.EXTENDING BOUNDARIES

The main focused of Patel was on selling high-value products at the lowest possible priceand to do so the Company sought production plants for raw materials at Baroda and Bhavnagar.

ACHIEVEMENTS

Declared as the 7th largest consumer brand by ACNielsen 03.

First brand to recognise and harness the power of the Indian Rural Market.

First Indian brand to be a Harvard business review case study.

The company has re-launched two of its strongest brands: Nirma Yellow washing powder, and Nirma Beauty Soap.

In Ahmedabad 2008, Nirma entered the healthcare segment with NIRLIFE to manufacture and market intravenous fluids, life savings drugs, amino acids etc.

Within a short span NIRLIFE achieved sizable market share of the domestic as well as the global parental market.RECENT DEVELOPMENTS

Since1969 nirma has grown from a small firm to such a big industry.

The journey from a single worker to 14000 employees and from 0% profit to 2500 crore turnover per year was not at all an easy affair.

There is lot of planning, analysis, hard work and dedication behind the current face of NIRMA.

CONCLUSION