Nirma company analysis

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Nirma company analysis

  1. 1. Company Analysis of NIRMA Sv College of Engineering Company analysis
  2. 2. Company Analysis of NIRMA CONTENTS 1. Company overview 2. Company history 3. Key employees of the company 4. Locations 5. Services and products 6. Top competitors of the company 7. Status of the competitors 8. Expert views 9. SWOT analysis 10. Major findings 11. Suggestion 12. Conclusion
  3. 3. Company Analysis of NIRMA NIRMAINTRODUCTION: Nirma is a group of companies based in the city of Ahmedabad in western India thatmanufactures products ranging from cosmetics, soaps, detergents, salt, soda ash, LAB andInjectibles. Karsanbhai Patel, a well known entrepreneur and philanthropist of Gujarat, startedNirma as a one-man operation. Today Nirma has over 15000 employees and a turnover of overRs. 3550 crores. In 2004, Nirmas detergent approached 800,000 tonnes – one of the largestvolumes sold in the world – under a single brand NIRMA.COMPANY PROFILE: Nirma LimitedType: PublicIndustry: FMCGFounded :1969Headquarters: Ahmedabad, IndiaKey people: Karsanbhai Patel (CMD)Products :Nirma detergent, Nima soapsRevenue: Rs. 3504 crores (2011 standalone) Rs. 5008 crores US$ 1.12 Billion (2011 consolidated)Employees: 14000Website: www.nirma.co.inCOMPANY OVERVIEW:Starting as a one-product, one-man outfit from a 100 sq ft (9.3 m2) room in 1969, Nirma becamea very successful company within three decades. The company had multi-locationalmanufacturing facilities, and a broad product portfolio under an umbrella brand – Nirma. The
  4. 4. Company Analysis of NIRMAcompanys mission to provide, "Better Products, Better Value, Better Living" contributed a greatdeal 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 withlow-priced detergents and toilet soaps. However, Nirma realized that it would have to launchproducts for the upper end of the market to retain its middle class consumers who wouldgraduate 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 premiumsegment.In 2000, Nirma had a 15% share in the toilet soap segment and more than 30% share in thedetergent market. Aided by growth in volumes and commissioning of backward integrationprojects, Nirmas turnover for the year ended March 2000 increased by 17% over the previousfiscal, to Rs. 12.17 bn.Nirma Limited CEO, CFO, Executives & Contacts 1. Shrenikbhai Lalbhai Non-Executive Independent Director Shri. Shrenikbhai K. Lalbhai is Non-Executive Independent Director of Nirma Ltd. Shri. Shrenikbhai K. Lalbhai is an industrialist. 2. Rakesh Patel Non-Executive Vice Chairman of the Board Shri. Rakesh K. Patel is Non-Executive Vice Chairman of the Board of Nirma...Products:Consumer products:
  5. 5. Company Analysis of NIRMA Soaps detergents Salt sourcing productsSoaps:Nirma Bath Soap ::...Toilet soap market in India was dominated by a very few MNCs which could monopolisticallyprice their product. In 1992, sensing a strong need to expand the market through PenetrativePricing, Nirma entered this market with the launch of „Nirma Bath Soap‟, which is a carbolic(Red) soap. Although the carbolic soap segment is on decline, Nirma Bath has generated largervolumes each year. Packed in a red colour wrapper and available in 75 gram and 150 gram packsizes, this soap has a Total Fatty Matter (TFM) of 60 %.Nirma Lime Fresh Soap ::...
  6. 6. Company Analysis of NIRMAThis product had created a sensational marketing history in the Indian Toilet soaps market, whenit was launched in 1997. Seventeen million packs of Nirma Lime Fresh soap were sold in thevery first month of its soft launch. Packed in a poly coated 75 gm carton, which is printed on theworld‟s best Cerruti 8-colour printing machine, this soap is available in green colour. With alime aroma that tingles in one‟s sensory buds for a long time, this soap contains 80% TFM. Theproduct launch of Nirma Lime Fresh had been extremely successful, being ranked as the SeventhMost Successful Brand Launch for the year 1998, as ranked by the Business Standard MarketingDerby, 1998. (as featured in The Strategist Quarterly, July-September 1998).Nirma Beauty Soap ::...With its market promise to offer “Better Products, Better Value, Better Living,” Nirmaintroduced „Nirma Beauty Soap‟ in the year 1992. Available in three different variants and packsizes, this soap has a TFM content of 70%. Due to its admirable perfume and a higher TFMcontent, this brand, within a short span of five years, had achieved the status of the third largestselling toilet soap brand and still continues its outstanding performanceNima Rose ::...Nima Bartan Bar also addresses the emerging market of scouring bars. It is being offered in 200gand 400g pack sizes. From initial launch days, it has got huge market success and consistentlyperforming well.The remarkable and phenomenal market response received by Nima Rose soap within just twomonths of its launch once again proved the merits of Nirma‟s commitment towards itsconsumers. Nima Rose soap has got an exceptionally soft rose fragrance – which remains aroundbody for a long time even after bath. The high TFM content of this product allows a consumer tohave pleasant bath. This brand had carved a niche in its segment by achieving leadership positionjust within two months of its launch. It is available in 100g and 150g pack sizes.Nima Sandal ::...Over the period, Indian toilet soap market has fragmented & has seen emergence of prominentfloral fragrance segments as Sandal, Rose, Jasmine, etc. Nima Sandal is a one of such product in
  7. 7. Company Analysis of NIRMAfloral segment. This toilet soap has 80% TFM content, with rich & exotic fragrance. It promisesbenefits of Sandal oil & Turmeric powder. It is a premium product from Nima stable and isavailable in 100g and 150g packs.Consumer Products – Detergents:Nirma Washing Powder ::...This product created a marketing miracle, when introduced in the domestic marketplace. In 1969,when the detergents were priced so exorbitantly that for most of the Indians, it was a luxury item.Nirma envisioned the vast Fabric Wash market segment and sensed a tremendous potentialtherein. This product was priced at almost one third to that of the competitor brands, resultinginto instant trial by the consumers. Owing to its unique environment-friendly, phosphate-freeformulation, the consumers became loyal to this brand, helping it to over-take the decades‟ oldbrands, in terms of volumes. This brand had been ranked as the “Most widely distributeddetergent powder brand in India” as per All India Census of Retail Outlets carried out in 435urban towns by the AIMS (Asian Information Marketing & Social) Research agency [BrandEquity - The Economic Times, March 11, 1997]. As per the ORG-MARG Rural ConsumerPanel [December 1998] survey, Nirma brand has been ranked as highest in terms ofpenetration in washing powder category [BT Rural Market Watch, Business Today, June 22,1999]
  8. 8. Company Analysis of NIRMANirma Detergent Cake ::...Deriving inspiration from its success in the Detergent Powder market, Nirma expanded itsproduct portfolio by introducing the “Nirma detergent cake” in 1987. Here again, the excellentprice-quality equation tempted the consumers to try the product. Available in 125g and 250gpack sizes, this brand has done exceptionally well. AIMS survey ranked Nirma detergent cake as“The Most widely distributed detergent cake brand”. Due to its unique formulation, this productoffers benefits like less melting in water, better stability, and therefore lasts longer. As per theORG-MARG Rural Consumer Panel [December 1998] survey, Nirma brand is ranked highestin terms of penetration in washing cakes / bars category [BT Rural Market Watch, BusinessToday, June 22, 1999].Super Nirma Washing Powder ::...Exploding the myth that „better quality always demands higher price”, Nirma introduced a spray-dried blue coloured washing powder in the premium segment, in 1996. Available in 25g, 500gand 1000g packs, this product out-classed its competitor brands. Though, priced almost 40 %lesser, thus providing a very attractive ‘value-for-money’ proposition. This brand, within ashort span of two years, had cornered substantial market share in the premium detergent segmentand continues to perform well.Super Nirma Detergent Cake ::...To meet the growing aspirations of consumers and to offer them value-chain product portfolio,Nirma introduced Super Nirma Detergent Cake, in 1992. Available in 125g and 250g pack sizes,this product, within a short span, convinced the consumers of competitor brands to switch theirloyalty towards Super Nirma detergent cake. With a high detergency value, this product offersquality wash to their consumers.Super Nirma Detergent Cake was ranked as the fastest Climber for the year 1997-98 in thedetergent cake/ bars category [BUSINESS TODAY, Octobers 22, 1998].
  9. 9. Company Analysis of NIRMA Nirma Popular Detergent Powder ::... To cater to the needs of the specific target audience, Nirma launched a good quality product at a very affordable price. The objective is to convert the non-users of detergents into users and also prevent the competitors and local manufacturers to lure away the prospective Nirma consumers by sub-standard products. This product has created a loyal consumer base of its own and has established substantial amount of volumes. It is available in pack sizes of 500g and 1000g pack sizes. Nirma Popular Detergent Cake ::... The positioning of Nirma Popular Detergent Cake is similar to that of Nirma Popular Detergent Powder. This product is available in 125g and 250g pack sizes, targeted to first-time detergent cake user segment. Consumer Products – Salt:
  10. 10. Company Analysis of NIRMA Nirma Shudh Iodized Salt ::... Nirma Shudh Salt, manufactured with state-of-art production facilities, using the vacuum drying process, is the only salt in the country to be manufactured in an entirely automated plant and is free from any manual handling, involved at any stage of manufacturing. The fully automated process helps in controlling each and every parameter so as to sustain the basic characteristics and quality of the product, with a guarantee of being the best in the quality parameters of iodine content, free flow nature, saltiness, whiteness and the size of the granules. It is being offered in an eye-catching and colourful special moisture proof 1 kg pack. Consumer Products - Sourcing Products: Nirma Clean Dish Wash Bar ::... Scouring bar is a potential emerging market in India. By offering Nirma Clean Dish Wash Bar, Nirma tried to tap this huge market. It is also a one-type of value product to the brand loyal consumers, catering their distinct needs. This product, like other products from Nirma stable, offers best quality at the most affordable prices. It is available in 300g pack size. Nima Bartan Bar ::... Nima Bartan Bar also addresses the emerging market of scouring bars. It is being offered in 200g and 400g pack sizes. From initial launch days, it has got huge market success and consistently performing well. Inspired by the success of the bar, Nima Bartan Dishwash Powder was also, subsequently soft-
  11. 11. Company Analysis of NIRMA launched, in 1000g pack size. Industrial Products:  LAB ( Linear Alkyl Benzene )  AOS ( Alfa Olefin Sulfonate )  Sulfuric Acid  Glycerin  Soda Ash  Pure salt  Vacuum Evaporated Iodized Salt  SSP ( Single Super Phosphate )  Sodium Silicate Company history History In 1969, dr. karsanbhai patel, a chemist at the Gujarat Governments 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 HLLs Surf was priced at Rs 15. Soon, there was a huge demand for Nirma in Ruppur (Gujarat), Patels hometown. He started packing the formulation in a 10x10ft 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
  12. 12. Company Analysis of NIRMA on his way to the office on bicycle, some 15 km away. By 1985, Nirma washing powder had become one of the most popular, household detergents 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 locations in India. Nirmas success in the highly competitive soap and detergent market was attributed to its brand promotion efforts, which was complemented by its distribution reach and market penetration. Nirmas 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. - making it among Top-7 Soda Ash manufacturer in the world. Company History - Nirma 1980 - The Company was incorporated on February 25, as Private Limited Company to carry on the business of manufacturing and selling Synthetic Detergents, Soaps, Chemicals and Allied Products. The Company is promoted by Shri Karsanbhai K. Patel. 1993 - The Company became a deemed public limited Company under Section 43-A of the Companies Act, 1956 and was then converted into a Public Limited -Company by passing a special resolution at the Extra-ordinary General Meeting held on November 08. -The Company proposes to set up a 1200 tpd (4,20,000 tpa) Soda Ash Project in technical collaboration with AKZO NOBEL ENGINEERING BV (AKZO) of Netherlands based on the Dry Lime Technology as a backward integration to the existing activities. -The company proposes to set up a facilities to manufacture Toilet Soaps with an installed capacity of 60,000 tpa and Synthetic Detergents with installed capacity of about 3,00,000 tpa. The Company will be entering into a long term agreement with the Bhavnagar Municipal Corporation for providing of requisite quantity of sewage water. 1994 - The Company came out with its maiden public issue of Equity Shares of Rs.10/- each for cash at a premium of Rs.100/- per share aggregating for Rs.44.78 crores in February. - The Company also ventured into manufacture of Fatty Acid, Glycerine, Toilet Soaps,
  13. 13. Company Analysis of NIRMA Sulphuric Acid and Alfa Olefin Sulphonate (AOS). - Nirma Ltd. has become a multi product company representing a wide array of product lines starting from Detergent Powders and personal care products like Toilet Soaps to chemicals like Sulphuric Acid, Glycerin, Alfa Olefin Sulphonates, Fatty Acids, Oxygen etc. - The Brand name NIRMA is owned by Nirma Chemical Works Pvt. Ltd. which has given a non exclusive license to AME thereby allowing AME to use the Nirma brand trade marks. - The Company sells Sulphuric Acid, Oleum, Alfa Olefin Sulphonates, Glycerin and Oxygen directly to industrial consumers on a regular basis. - The Company has also installed 26 Wind Turbine Generators (WTG) With a capacity of 5.94 MW to generate power at Dhank Dist., Rajkot. - Nilnita Chemicals Limited will be amalgamated with the Company With effect from 1st April. - The Company is setting up a desalination facility for producing About 200 cu. mtrs per day of soft water. - The Company proposes to establish R&D Centre at site for better waste utilisation and infrastructural betterment. - The Company has entered into a Memorandum of Understanding with Indian Oil Corporation Ltd., for release by I.O.C.L. of 80,000 MTPA net of LAB feed stock in case the Company decides to establish a plant for the production of 80,000 MTPA of Linear Alkyl Benzene. - The company has also installed equipments for testing the bio-degradability of various surfactants. 1995 - The Company is setting up salt works facility at Kalatalav on 25,000 acres of land adjacent to its proposed Soda Ash plant for meeting its entire salt requirement. - The Company has entered into an Agreement with Humphrey & Glasgow Consultants Ltd. for Detailed Engineering, construction supervision including Civil and Architectural Designs and Procurement Services for the Soda Ash Plant. - The Company would be entering into Equipment Supply Agreement(s) With the Critical Plant & Equipment Suppliers which, inter-alia, should provide for performance guarantee of the equipment, penal provisions for non-fulfilment of guaranteed norms, delay in delivery and defects in workmanship/design etc. 1996
  14. 14. Company Analysis of NIRMA - During the year, Company has introduced Shampoo, which has been Seed marketed and has been accepted well by the consumers. - During the year, on account of modernisation, Company has successfully manufactured IP Grade (Pharmaceutical Grade) Glycerin and the same has been well accepted and is in good demand. - The Company has technology tie up with UOP Inter Americana Inc. U.S.A. who will be providing technical and basic engineering services. The Company has also tied up with Uhde India Limited for providing detailed engineering services. - Issue of 81,41,750 - 17% secured non convertible debentures and/or secured premium notes of the face value of Rs 200 each for cash at par aggregating Rs 162,83,50,000 alongwith four detachable warrants attached to each NCS/SPN, to the shareholders of the company on rights basis in the ratio of one NCD/SPN for every two equity shares held by them on 9th August. 1997 - Nirma is one of the countrys largest detergent producers selling over 4.5 lakh tonnes of detergent and having the largest market share in the low value mass market brands. Nirma, powder sells more than Hindustan Levers Wheel, though Hindustan Lever is the largest producer of detergent and toilet soaps put together. - Nirma Ltd is launching a mega public offer totalling Rs. 350 crore. The offer will be distributed through the 100 per cent book-building process, whereby the sale price of the share and the total size of the offer will be driven by demand for the stock. - Nirma is not only Indias largest selling brand in detergent segment but is also the second largest manufacturer of toilet soap in the country. - Nirma Ltd has entered into a separate agreement with Nirma Chemical Works Ltd (NCWL), the trademark owner of the Nirma brand, for exports. - Nirma has entered into a separate agreement with Nirma Chemical Works, the trademark owner of the `Nirma brand, for exports. - The company has created Nirma Consumer Care Ltd. - a wholly owned subsidiary in August, which is the sole licensee of the brand name Nirma within India. - The 75,000 tpa linear alkyl benzene (LAB) plant was commissioned In December, at Alindra near Baroda in Gujarat. 1998 - ICRA has assigned an LAAA rating to the Rs.200 crore Non-convertible debentures programme of Nirma Ltd (NL), indicating highest safety.
  15. 15. Company Analysis of NIRMA - The company Nirma has already announced successful completion of its state-of-the-art 80,000 tpa Linear Alkyl Benzene plant. - Nirma is one of the few Indian companies that have matched the MNCs in the retail sales through innovative marketing strategies. - The firm has set up state-of-the-art packaging and printing units and will now directly produce key raw materials to improve product quality. 1999 - The edible salt market is set to witness a keen battle with a new entrant, Nirma Salt, about to hit the market. - The company is putting up a three-stage vacuum salt plant with an installed capacity of 280,000 tonnes a year. - The overall sales growth has been constrained due to a plant shutdown in the industrial product segment to manufacture N-Paraffin. 2000 - Nirma has decided to acquire the business of Kisan Industries for a cash consideration of Rs 200 crore with effect from 1st April. - Kisan Industries, having manufacturing facilities for detergents and fertilisers and for printing and packaging at Moraiya village in Ahmedabad district, had the right to manufacture 20 per cent of Nirma brand of detergents. - Nirma has decided to issue redeemable NCDs with a face value of Rs 1,00,000 each at Rs 1,00,000 each, aggregating Rs 150 crores, in one or more tranches on private placement basis for a tenor of 350 days, carrying an interest rate not exceeding 11.5 per cent per annum, payable yearly. - Credit rating agency ICRA has retained the highest safety rating of `LAAA to the Rs 200 crore non-convertible debenture programme of soaps and detergents major Nirma 2002 -Garners Rs 75 crore by issuing one-year floating-rate debentures -Undertakes manufacturing of toilet soap under the brand name Camay for its subsidiary Nirma Consumer Care Ltd which obtains license from Procter & Gamble Home Products Ltd. Nirma Consumer Care Ltd launches the product on October 08, 2002 -Closes down Bangladesh unit due to low sales volumes 2003
  16. 16. Company Analysis of NIRMA -Shareholders of the Company approve Scheme of Arrangement for Demerger of Operating Division of Nirma Industries Ltd with the company -Kicks off a fresh valuation of its two key brands namely, Nirma and Nima, together with the trademarks -Gujarat High Court approves Scheme of Arrangement for Demerger of Operating Division of Nirma Industries Ltd with the company 2004 Nirma Education and Research Foundation (NERF) has set up NirmaLabs, a not-to-profit Section 25 company with a corpus of over five crore, to nurture talented individuals in their pursuit of high-tech, knowledge-based wealth generation. - Karsanbhai Patel, promoter of the Ahmedabad-based detergents major Nirma Ltd, is becoming a venture capitalist. A Patel entity, Nirma Education and Research Foundation, has set up a new company, NirmaLabs, which will incubate talented individuals and projects. 2007 - The Company has splits its face value from Rs.10/- to Rs.5/-. Achievement: 7th largest consumer brand by ACNielsen 03 First brand to recognize and harness the power of the Indian rural market. First Indian brands to merit a Harvard business review case study. Recent developments: The company has relaunched nirma yellow washing powder and nirma beauty soap, two Of its strongest brands. Nirma yellow powder is being relaunched with improved formulation and advertising. This is the extension of the orginal ad which will return after the launch is over. nirma beauty soap is being relaunched with a new shape, fragnance and a smarter, brighter pack to improve shelf visibility. Acquired searles valley minerals operations and searles valley minerals.
  17. 17. Company Analysis of NIRMA Updates: A candidate with more than three years of work experience can apply to IM-NU, however, the more number of years of work experience does not put him at an advantage. This can also be inferred by the fact that the average work experience in the present class of IM-NU stands at two years. Nirma Ltd - Results Update, Quarter ended, 31-DEC-2010 (Standalone) Nirma Limited has informed regarding the standalone Results for the quarter ended on 31-DEC-2010 as follows: Net Sales of Rs. 80211 lacs for quarter ending on 31-DEC- 2010 against Rs. 75799 lacs for the quarter ending on 31-DEC-2009. Net Profit / (Loss) of Rs. 2701 lacs for the quarter ending on 31-DEC-2010 against Rs. 6865 lacs for the quarter ending on 31-DEC-2009. Nirma Ltd - Results Update, Quarter ended, 30-SEP-2010 (Standalone) Nirma Limited has informed regarding the standalone Results for the quarter ended on 30-SEP-2010 as follows: Net Sales of Rs. 78243 lacs for quarter ending on 30-SEP- 2010 against Rs. 75005 lacs for the quarter ending on 30-SEP-2009. Net Profit / (Loss) of Rs. 2355 lacs for the quarter ending on 30-SEP-2010 against Rs. 7929 lacs for the quarter ending on 30-SEP-2009. Key employees of the company: Dr. Karsanbhai Khodidas Patel (b. 1945, Ruppur, Mehsana, Gujarat) is an Indian industrialist, founder of the Rs. 2500 crore (USD 500 mn) Nirma group with major interests in detergents, soaps and cosmetics. In 2005 Forbes listed his net worth as USD $640 million. He has interests in education, and founded a leading pharmacy college (Nirma Institute of Pharmacy), leading engineering college, (Nirma Institute of Technology). He is sometimes referred to as Dr. K.K. Patel. Life Born into a farmer family from north Gujarat , Karsanbhai finished his B.Sc. in Chemistry at age 21 and worked as a lab technician, first in the New Cotton Mills, Ahmedabad, of the Lalbhai group and then at the Geology and Mining Department of the state Government. In 1980 , Karsanbhai set up Nirma, (named after daughter Nirupama) selling detergent powder. This was an after-office business - the one-man company would bicycle through the neighbourhoods selling handmade detergent packets door to door. At a price of Rs. 3 per kg, (one third the price of leading detergents), it was an instant success. After three years, Karsanbhai felt confident enough to quit his job. Later he said, "The lack of any such precedent in my family made the venture fought with fear of failure. But farmers
  18. 18. Company Analysis of NIRMA from North Gujarat are known for their spirit of enterprise." Karsanbhai set up shop at small workshop in an Ahmedabad suburb. The Nirma brand quickly established itself in Gujarat and Maharashtra. The high quality and low price of the detergent made for great value. Fuelled by housewife- friendly advertisement jingles, Nirma revolutionized the detergent market, creating an entirely new segment in the economy for detergent powder. At the time, detergent and soap manufacture was dominated by multinational corporations with products like Surf by Hindustan Lever, priced around Rs. 13 per kg. Within a decade, Nirma was the largest selling detergent in India. Since production was labour intensive, Nirma also became a leading employer (employing 14,000 people 2004). Made without some phosphates, Nirma was also somewhat more environment friendly. After establishing its leadership in economy-priced detergents, Nirma entered the premium segment, launching toilet soaps Nirma bath and Nirma beauty soap, and premium detergent Super Nirma detergent. Ventures into shampoo and toothpaste were not as successful, but the edible salt Shudh is doing well. Nirma beauty soap is one of the leading toilet soaps, behind Lifebuoy and Lux. Overall Nirma has a 20% market share in soap cakes and about 35% in detergents. Nirma also has successful operations in neighbouring countries. In 1995, Karsanbhai started the Nirma Institute of Technology in Ahmedabad, which grew into a leading engineering college in Gujarat. An Institute of Management followed, with the entire structure being consolidated under the Nirma University of Science and Technology in 2003, overseen by the Nirma Education and Research Foundation. The Nirmalabs education project, aimed at training and incubating entrepreneurs, was launched in 2004. Karsanbhais two sons and son-in-law are now at leading positions in the Nirma organization: Rakesh K Patel (MBA) looks after procurement and logistics, Hiren K Patel, chemical engineer and MBA, heads marketing and finance, while Kalpesh Patel is in human resources and Healthcare Industry (Nirlife healthcare). Awards In 2001, Karsanbhai was awarded an honorary doctorate by Florida Atlantic University, recognizing his exceptional entrepreneurial and philanthropic accomplishments. In 1990, the Federation of Association of Small Scale Industries of India (FASII), New Delhi, awarded him the Udyog Ratna award. The Gujarat Chamber of Commerce felicitated him as an Outstanding Industrialist of the Eighties. He has served twice as Chairman of the Development Council for Oils, Soaps and Detergents. Dr. Karsanbhai Khodidas Patel has been conferred with Padma Shri Award for the year
  19. 19. Company Analysis of NIRMA 2010.The award will be formally conferred by the President of India Mrs Pratibha Patil. Locations: You can view the entire list of company locations such as Registered Office, Branch Office, Head Office, Corporate Office, Regional Offices, Overseas Office, Factory, Plants, and Training Centers etc. with details for Nirma Ltd. Registered Office: Nirma House, Ashram Road City:Ahmedabad State:Gujarat Pincode:380009 Email ID:investors@nirma.co.in Web Url:http://www.nirma.co.in Factory/plant: Block No. 16/B, Ahmedabad Mehsana Highway, P.O. Mandali City:Mehsana District State:Gujarat Pincode:382732 Wind Farm Project, Survey No. 691, Village - Dhank, City:Rajkot Dist. State:Gujarat Pincode:0 Village - Moraiya, Post Chancharwadi Vasna, Near Modern Denim- City:Ahmedabad District State:Gujarat Pincode:382213 Alindra Detergent Complex, P O Alindra, Tal. Savli
  20. 20. Company Analysis of NIRMA City:Baroda District State:Gujarat Pincode:391775 Bhavnagar Chemical Complex, P O Kalatalav City:Bhavnagar State:Gujarat Pincode:364313 Nirlife Pharma Complex, Survey No. 358-369, Village Sachana, City: Ahmedaba District State:Gujarat Pincode:382150 Services and products: Genesis: 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,
  21. 21. Company Analysis of NIRMA 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 P‟s, i.e. a perfect match of product, price, place and promotion. Now, the year 2004 sees Nirma‟s 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 resource-savvy technology to optimise capabilities. Nirma‟s 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
  22. 22. Company Analysis of NIRMA 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 India‟s 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. Heritage: In scorching heat of 1969, a son of small-time farmer was trying to mix Soda Ash and few other intermediaries, to make a detergent produce. He was a qualified Science graduate and was working as junior chemist in Government laboratory. As a moonlighting activity, he was making detergents in the 100 Sq. Ft. back yard of his home, using bare hands and bucket. Once the mixture is ready, he used to pack them in polythene bag and was selling door-to-door… Gradually, the product became well accepted in the consumer community, and the rest is known to one and all… This is a success saga of a first generation entrepreneur, on his way to create history in the Indian marketplace - that was Dr. Karsanbhai Patel. In a short span, he captured the domestic market, with a quality product. He swiftly crafted low-to-medium consumer pockets – a whole new consumer segment for detergent category. He took on mighty multi-nationals and rewrote the marketing rules. In true sense, he spearheaded the market revolution by offering innovative, „value-for-money‟ products, and changed the cloth-washing habit of Indian housewives - the revolution called …“Nirma”. From initial days, Nirma believed in value-for-money equation, in creating and maintaining long-lasting relationships. It has always remained committed to offer better products, at better
  23. 23. Company Analysis of NIRMA value, for better living… Vision, Mision & Philosophy: 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. Corporate Social Responsibilities: Nirmas vision visualises itself as a vibrant, pro-active and widely admired, ethical corporate citizen. Nirma believes, that exemplary achievements on the business points are not enough in the making of a good corporate citizen. In fulfilment of this role as a responsible part of the society and environment in which one operates, Nirma has undertaken a host of activities in the educational and social development areas. Realising the significant role of education - especially technical and managerial in socio- economic development of the nation, Nirma played a vital role by establishing the Nirma Education & Research Foundation (NERF) in 1994. Recently, this Foundation has been awarded University status. This status gives way to shape up and expand into a body providing education in other courses like medicine, nursing, biotechnology, etc. along with the existing courses under a single roof of Nirma University. Today, this state-of-the art academic infrastructure runs various institution bodies such as Institute of Technology, Institute of Management, Institute of Pharmaceutical Sciences and Institute of Diploma Engineering. These all institutions are located in a disciplined, serene and pleasant environment. The campus blends beautifully with the green landscaping, aesthetic elegance of arches and the vibrant pursuit of knowledge by the young aspirants. The environment gives full scope for group
  24. 24. Company Analysis of NIRMA activities, which are plenty, as also to individual pursuits for development on preferred tracks. Institute of Management is a one of the premier business school, providing quality management education, and nourishing managerial talent. Within a short span, this institution achieved a position in Top-25 B-schools of India. The institute is having state-of-art infrastructure facilities and eminent faculties are sharing and contributing their knowledge to nurture the Indian industry with best managerial skills. Presently, the institution offers a two- year full time programme in business management and managing family business disciplines. Fellowship programme is doctoral level programme for post-graduate scholars in management for those who want to pursue careers in research, consulting, and academics. The programme consists of domain-specific advance courses for skill formation in research, consulting and teaching. To impart management learning to working executive community, Institute of Management is also offering three-years part-time management programme. Management Development Programmes [MDPs] and Executive Diploma Programs [EDPs] are uniquely designed for working executives, managers and entrepreneurs in the fields of Finance, Marketing and Human Resource Management. The programme has been tailored to suit the needs of working executive, managers and entrepreneurs who are seeking an exposure to modern management concept and practices. Institute of Technology offers degree-engineering courses in Chemical, Instrumentation & Control, Electronics & Communication, Computer Sciences, Civil, Mechanical and Electrical technologies. Again, the well-developed infrastructure, knowledge-based faculties and facilities offered at the institution, gives it a priority choice in student community. The institute also offers Post-graduation, advanced courses in various technology disciplines. Year-around different happenings and seminars keep the environment very lively and provide opportunities to her students to perform brilliantly in their disciplines. Institute is also offering Masters in Computer Application courses. Institute of Diploma Studies is offering four-year diploma programme. This programme covers sandwich pattern of multi point entry (MPE) and credit system (CS). This methodology helps students to comprehend industrial practices when they are in the institution allowing them opportunity to develop skills in far better way than their counterpart of non co-operative type programme. This institute is recognized by the All India Council for Technical Education (AICTE) and State Government of Gujarat. Institute of Pharmaceutical Sciences is responsible for preparing students to enter into a career in pharmacy and function as professionals and responsible citizens in changing health care systems. A dynamic, challenging and comprehensive curriculum, includes a foundation in the biological, biomedical, clinical, pharmaceutical and physical sciences, clear focus on application and use of knowledge in practical settings, and a general education in healthcare systems, ethics, management, professional issues, communication and practical skills. NirmaLabs is another contribution of Nirma with an objective to nurture, promote and
  25. 25. Company Analysis of NIRMA facilitate potential entrepreneurs in their pursuit of knowledge based large-scale wealth generation for stakeholders and society. The prospects will undergo the program of grooming and incubation at NirmaLabs, and will then be supported to build the incubated ventures with appropriate support. Nirma has already contributed Rs. 350 million for the development of these institutes, an amount, which is likely to rise further to Rs. 500 million. The infrastructure facilities created here are of international standards and they have already become models for similar institutes. Plans are underway to start Post Graduate & Research Courses in Management and Technology, as well as an IAS training center and a programme in Masters of Computer Applications. Nirma Memorial Trust and Nirma Foundation - Nirma Memorial Trust looks after deprived women in Gujarat. It builds Ashrams and guesthouses for pilgrims and the elderly. The Nirma Foundation, set up in 1979, contributes towards the running of schools, colleges, temples and social institutions, within the state and outside. Chanasma Ruppur Gram Vikas Trust in Mehsana of which Mr. K. K. Patel is the founder trustee and President provides education, maintenance of public health and related facilities in rural areas. The trust has started several institutions in Ruppur, including the Art & Commerce College, and an ITI training institute and a ladies hostel. The Nirma Culture: Better Products. Better Values. Better Living. Nirma believes in disciplined, serene and pleasant working environment. Such environment helps to inspire the internal customers to deliver their best with greater satisfaction. Empowerment, Equality, Security and Opportunity are the vital values which organisation infuses in its vast employee-base. The conventional wisdom at Nirma empowers every employee to have autonomy in the way he can plan, organize and carry out his work.  Delegation is not confined only to the higher levels and there is adequate decentralization to the departmental level in all types of decision-making.  Equality, in our organization refers to integrity and honesty in all dealings between the staff and the organisation i.e., setting clear standards of performance; attitude and behaviour at work in rewarding performance. Equality of opportunities and access to promotion, training and development are absolute here.  We tend to provide the highly rewarded value - security, both economic and emotional. This value helps to instil family-kind relations among employees.  We also provide enough career advancement opportunities and thus they form another contemporary value. Career paths are clearly laid down for employees and they are
  26. 26. Company Analysis of NIRMA helped to become aware of the career opportunities in the company. Managers share diversification / expansion plans to provide career related information. Apart from these values, our management philosophy constitutes the management ethos of high order. People in our organization are more Action-goal oriented. They have a high sense of adequacy with clear goals about their future and are directed by these goals. Their proactive behaviour has led our company to a position of one of the top business houses of India. Developing human resources is a continuous process at Nirma involving overseas training programmes, on-the-job orientation for the trainees, in-house computer education and personality development sessions. The belief is that all this makes an individual a better person, which in turn leads to better productivity and a spirit of accountability and commitment in each member of the Nirma family. Also, employees here receive adequate information relating to their tasks through circulars, notices and meetings to enable them to plan and perform their jobs well. Apart from this, our organization pays attention to improving the communication infrastructure through latest technologies available in this area. Nirma hires only the best people in their respective fields, people with a capacity to take on the challenge of realizing the Nirmas vision. Proactive, dynamic professionals with the expertise of executing mega projects would integrate Nirma into a conglomerate by providing the best in technological advancements, right from product development to inventing new categories. So, if you subscribe to this philosophy, we may have the right career opportunity for you. Top competitors of the company: 1. Hindustan Unilever 2. Godrej Consumer Prod 3. Dabur India 4. Colgate Palmol. (I) 5. Gillette India 6. marico 7. Godrej Industries
  27. 27. Company Analysis of NIRMA 8. P&G Hygiene 9. Emami 10. Nirma 11. Jyothy Laboratorie 12. Bajaj Corp 13. Reckitt Benckiser 14. Parikh Herbals 15. Amar Remedies 16. Fem Care Pharma 17. 18. Rayban 19. Henkel India 20. JHS Svendgaard 21. JL Morison India 22. MFL India 23. Guj. Meditech 24. GKB Ophthalmics 25. Pee Cee Cosma Sope 26. Paramount Cosmetics 27. Muller & Phipps (I) 28. Ador Multiprod 29. Velvette Intl. Phar 30. deal Optics 31. Synergy Cosmetics Status of the competitors: Hindustan Unilever Limited (HUL) is Indias largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond‟s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall‟s and Pureit. The Company has over 16,000 employees and has an annual turnover of around Rs. 21,736
  28. 28. Company Analysis of NIRMA crores (financial year 2011 - 2012). HUL is a subsidiary of Unilever, one of the world‟s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €46.5 billion in 2011. Unilever has about 52% shareholding in HUL. Expert views: detergent...... Expert Views on SUCCESS STORY OF NIRMA from Bangalore, India. ... The company got listed on the stock exchanges in the year 1994. 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 for Rs. 3 per kg when the cheapest detergent at that time was Rs.13 per kg and 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 Patel‟s 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 consumer‟s money. In the 1980s nirma moved ahead of Surf , a detergent by HLL , to caputre a large market
  29. 29. Company Analysis of NIRMA 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 Nirma‟s annual sales were as high as 800000 tonnes.According to Forbes in 2005 Karsanbhai Patel‟s net worth was $ 640 million k.k.patel view While entering the new millennium, I take this opportunity to share some of my thoughts with you. Last decade was an era of globalisation and liberalisation across the region. Much has been said and done and much more is yet to be done. Lot of debate has taken place in the past about the level playing field etc. The storm has settled without satisfactory solution. The point which I would like to make is that in the process of economic liberalisation we should not take a step which results into monopolistic situation, which is controlled even in a most open economy like US, and Microsoft is a live example. In fact, the economic liberalisation must lead to increase in productivity and we must revisit the existing labour laws. In the process of economic liberalisation the hidden competition is now with the global market. In the context, if our productivity standards are not upgraded to international standards, the domestic business will definitely suffer. To achieve the said standards, we need to concentrate on education, training and working environment. In case of working environment one of the major bottleneck are our labour laws. Employers should be permitted, based on their internal appraisal systems to take decisions without interference of the law, may be to the lowest extent say 1% of their strength. The powers conferred to the labourers should also specify the responsibilities and there should be a proper mechanism to
  30. 30. Company Analysis of NIRMA monitor and make the responsibilities effective. Today, all around the era is Information Technology and Dot Com. India being a country where educated, english speaking intellectual power is available in plenty, the world at large, at present, is looking at import of the said manpower. We, at bureaucratic level appears to be bent upon loosing this opportunity by restricting / controlling number of seats in the field of IT allotted to the various engineering institutes, be it private or public. To cash on these long term opportunity, I feel even in education, this type of road blocks needs to be removed on an urgent basis. I feel happy about our intellectual recognition on the globe, and indeed we should be. The process of liberalisation should extend in the field of education too. We must also think about the value addition taking place in the country instead of merely focusing on exporting the manpower. If we can create an environment, whereby those corporations employ them in India, that would be better solution and would lead to better economic growth. Be it service consumer or a product consumer at the end of the day what does consumer wants really matters. The consumer all over the globe looks for better equation of value and money, keeping other factors like product availability, after sales service, etc. being constant. These equations could be perspective and could be real. The perspective equations be it by hype, be it by improper presentation, be it by misrepresentations by sending wrong message about the product may succeed. The same kind of success can sustain for a short time, but in the long run the hard core value in the product which benefits him and which enhances his real usage value only will sustain. Hard core value maximisation, avoiding usage of non required elements into the product and reducing the cost by that results in the benefit of the consumer will only sustain. In a product cycle it is very difficult to define what is long term and what is short term. But in case of NIRMA, we are committed to the long term referred strategy and I am happy that the said strategy has been digested not only at the senior management level but right up to the operating level and that is the level of satisfaction I have desired, and any may be that is the value which will continue to benefit the family of entire NIRMA stake holders. directed, in view of the aforesaid conclusions of the EAC and the fragile nature as also the ... Hliiuw PL. Report of the Expert Committee on visit to Cement Plant site of llllls Nirma Ltd., near ..... Committee is of the opinion that selected experts .. . EAC on the project of M/s Nirma Ltd. to establish a Cement Plant at. Padhiarka, District ... Gujarat government who had been invited by the Ministry to present their views as also the .... formulate and pronounce opinions on the state of the land.Keeping in view the Companys enterprising spirit of exploring diverse business .... Expert Appraisal Committee (EAC) submitted its recommendations to the ...... In our opinion and to the best of our information and explanations given to us.
  31. 31. Company Analysis of NIRMA SWOT analysis Nirma swot analysis 1.SWOT ANALYSIS OF Presented by:- Ishita Banerjee, Prabha Kumari Satya Prakash Pandey, Rajesh Sharma3/12/2012 MARKETING MANAGEMENT 2. Introduction• Started as a one-product one-man outfit in 1969 by a chemist Karsanbhai Patel, at Ahmadabad.• The company‟s mission to provide, “Better products Better Value, Better Living” contributed a great deal to its success. MARKETING MANAGEMENT 3/12/2012 3. Basic Features• Nirma was a basic detergent with no color, design or sophistication on the pack the product• Was priced at around 35% of surf.• Market share grew from 0% in 1976 to about 60% in 1987 in over a period of ten years• It has become the largest selling brand and the success of Nirma is due to affordable price, medium quality, distribution reach and effective use of media.• The title NIRMA GIRL going round and round on her feet makes a strong impact for the brand 3/12/2012 MARKETING MANAGEMENT 4. Story of success(cont..)• At the starting of thecompany Dr. Karsanbhai Patel was making detergentsin the 100 Sq. Ft. back yardof his home, a village in Gujarat• using bare hands & bucket Once the mixture is ready, he used to pack them in polythene bag and use to sell door to door. 3/12/2012 MARKETING MANAGEMENT 5. Now the company has 14000 employee and yearly turn over 2500 cr. approximately.3/12/2012 MARKETING MANAGEMENT 6. 3/12/2012 MARKETING MANAGEMENT 7. Advantage of SWOT Analysis• Consolidate strengths .• Minimizes weakness.• Helps to grab the opportunity.• Minimizes threats.• Facilitates planning.• Facilitates alternative choices.• Helps to innovate• Ensure survival & success. 3/12/2012 MARKETING MANAGEMENT 8. Strength• Strong brand equity. Nirma is a Rs.17 billion umbrella brand offering consumers a broad portfolio of products at multiple price points in the Detergents, soaps and personal care market.• Long-term and strong relationship With customers ,as well as goodwill of the brand.• Strong and wide distribution channel3/12/2012 MARKETING MANAGEMENT 9. Strength(cont..)• Nirma have now diversified business, spreaded in various sectors.• Market leadership in detergent and fabric wash and toilet soap• Produce a range of industrial chemical products which primarily serve as raw material or intermediates for soaps and detergent business.3/12/2012 MARKETING MANAGEMENT 10. Product Ranges Consumer Products3/12/2012 MARKETING MANAGEMENT 11. Product Ranges Industrial Products• LAB (Linear Alkyl Benzene)• AOS(Alfa Olefin Sulphate)• Sodium silicate• Sulphuric Acid• Glycerin• Pure salt3/12/2012 MARKETING MANAGEMENT 12. Education IndustryNirma University with following institutes-• Nirma institute of management.• Nirma institute of law.• Nirma institute of• technology3/12/2012 MARKETING MANAGEMENT 13. weakness• High interest burden• Less presence in premium segment.• Lack global tie-ups
  32. 32. Company Analysis of NIRMA and thus lacking in export market3/12/2012 MARKETING MANAGEMENT 14. Opportunities• Exports to developing /neighboring countries• Acquisition for strengthening its distribution tie ups.• Entry into other categories like shampoos, toothpastes and fabric whiteners.• Increase market share in premium segment by launching variants.3/12/2012 MARKETING MANAGEMENT 15. Opportunities• Nirma would have a great future in service industry, as they already have the brand goodwill. The prospective sectors would be.- Education- Hotel industry- Health Care Services- Rural Financial services3/12/2012 MARKETING MANAGEMENT 16. Threats • MNCs coming to India particularly in Toilet Soap industry. • Emergence of small but strong regional players. • Broad attack from HUL and P & G. 3/12/2012 MARKETING MANAGEMENT 17. Threats• With growth in size, arise the challenges of organization and control. Nirma needs to focus on these challenges and see how it can retain some of its nimbleness and yet reap the advantages of size, such as the economics of scale.3/12/2012 MARKETING MANAGEMENT 18. Area of improvement: • Introduction of new sachet • Introduction of family jar. • Improvement in distributing pattern. • Improvement in advertisement and mode of advertisement. • Improvement upon R & D. • Offer better commission to the sellers for selling the product.3/12/2012 MARKETING MANAGEMENT
  33. 33. Company Analysis of NIRMA Major findings The main findings/recommendations of the report are: ... construction of the cement plant, captive power plant and a coke oven plant belonging to Nirma Limited, ... Nirma Cement Plant should be relocated: Recommendation of the Expert Committee of MoEF The Expert Committee (EC) set up by the Ministry of Environment and Forests (MoEF) on order from the Supreme Court to assess the matter of the Nirma Cement plant submitted its report to the court on May 10, 2011. The EC set up under the chairmanship of Prof. CR Babu had visited the site on April 18. The main findings/recommendations of the report are: The project site, allocated for the construction of the cement plant, captive power plant and a coke oven plant belonging to Nirma Limited, lies within the catchment area of the Samadhiala bandhara. The site is classified as a wetland and a water body. This wetland is of immense importance to the area as it helps recharge groundwater, possesses rich biodiversity, etc. The air emissions and effluents generated by the plant operations will be detrimental to the agriculture in the area and impact the environment. The wetland will also be affected. Two species of endangered vultures – white back and long billed, are found along the bandhara. There is a reserve forest within 10 km radius of the site which has many other threatened bird species. Mahuva taluka is also home to Asiatic Lions as per the Gujarat Forest Department Census 2010. The Shelat Committee recommendations will not prevent salinity ingress and in fact will have the opposite effect.
  34. 34. Company Analysis of NIRMA The plant should be relocated elsewhere outside the Samadhiala bandhara. The report was discussed by the Expert Appraisal Committee (EAC) in a meeting held on May 5. The representatives of the Gujarat government insisted in the EAC meeting that the land in question is wasteland as per the revenue records. They claimed that the cement plant will not affect the environment or the bandhara in any way and endorsed the Shelat Committee recommendations. The EAC concluded the matter by saying that the land in question is indeed a wetland or a waterbody. They felt that the land should have been reclassified in the revenue records after the construction of the bandhara. The EAC agreed with the findings of the EC report and believes that any activity that will affect the wetland or the waterbody should not be allowed in the area. It suggested that alternative sites maybe available in the vicinity and a waterbody will not be given up for a cement plant. The environmental clearance accorded to the cement plant in December 2008 hence was revoked since it was based on undisclosed and incorrect information. The Supreme Court has kept its decision on the matter on hold till May 13. CSE has been actively involved in the case and has worked closely with the local community in bringing out the flaws in the environmental clearance process.
  35. 35. Company Analysis of NIRMA Conclusion From 1969 to 2012, from a small firm to a big industry with 21 branches, from one man outfit to 14000 employees and from 0%profit to 2500cr. Turnover per year, is not such a easy story.• There were lot of planning, analysis, hard work and dedication behind the key of success of that diversified business.• It all become possible, when a company or an individual know their SWOT analysis.
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