This presentation contain the whole journey of Nirma. Also, i add pictures to make it more attractive and help to memorize it when presenting it to audiences.

1. Maharaja Agrasen Institute Of Technology
Presentation on the
“JOURNEY OF NIRMA”
Presented by:
Ritesh Garg
MBA 2B

2. INTRODUCTION
Nirma 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…

3. MISSION
Better products
Better value
Better living

4. COMPANY PROFILE
TYPE: PUBLIC
INDUSTRY: FMCG
FOUNDED: 1969
HEADQUARTERS: AHMEDABAD
KEY PEOPLE: KARSANBHAI PATEL
PRODUCTS: Nirma detergents, soaps
REVENUE: Rs. 3504 crore (2011)
EMPLOYEES: 14000
COMPETITORS: HLL, Surf, Jyothy laboratories,
Emami
MARKET SHARE: 15% in soap segment & 30% in
detergent segment

5. INDUSTRIAL PRODUCTS
 LAB( linear Alkyl Benzene)
 AOS( Alfa Olefin Sulfonate)
 Sulphuric Acid
 Glycerine
 Soda Ash
 Pure Salt
 Vacuum Evaporated Iodized Salt
 Sodium Silicate

6. THE JOURNEY…

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

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

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

10. He named the powder as Nirma after his
daughter’s name NIRUPAMA.

11. SUCCESS BATTLE OF NIRMA
 In 1970s, when Nirma washing powder was introduced
in the low-income market, Hindustan Lever
Limited(HLL) signified that it didn’t 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.

12. 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 first
•receive feedback, and
•then create an enduring ad campaign.
For instance, North preferred PINK soaps while
the South preferred GREEN soaps.

13. • 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 India’s second
largest manufacturer of toilet soaps .

14. . 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 Nirma’s turnover
increased by 17% over the previous fiscal, to
RS.17.17 billion.
0
5
10
15
20
25
30
35
15.001
30.001
1999
2000

15. . 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.

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

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

18. major
PRODUCTS OF NIRMA CO.

19. 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

20. 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.

22. Workers working in washing powder factory

23. . 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.

24. 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

25. . 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.

26.  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

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

28. 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.

29.  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

30.  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