Company Analysis of NIRMA

Sv College of Engineering

Company analysis

CONTENTS

Company Analysis of NIRMA

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

NIRMA

Company Analysis of NIRMA

INTRODUCTION:
Nirma is a group of companies based in the city of Ahmedabad in western India that
manufactures products ranging from cosmetics, soaps, detergents, salt, soda ash, LAB and
Injectibles. Karsanbhai Patel, a well known entrepreneur and philanthropist of Gujarat, started
Nirma as a one-man operation. Today Nirma has over 15000 employees and a turnover of over
Rs. 3550 crores. In 2004, Nirma's detergent approached 800,000 tonnes one of the largest
volumes sold in the world under a single brand 'NIRMA'.

COMPANY PROFILE:
Nirma Limited

Type: Public
Industry: FMCG
Founded :1969
Headquarters: Ahmedabad, India
Key people: Karsanbhai Patel (CMD)
Products :Nirma detergent, Nima soaps
Revenue: Rs. 3504 crores (2011 standalone)
Rs. 5008 crores
US$ 1.12 Billion (2011 consolidated)
Employees: 14000
Website: www.nirma.co.in

COMPANY OVERVIEW:
Starting as a one-product, one-man outfit from a 100 sq ft (9.3 m2) room in 1969, Nirma became
a very successful 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 lowerend of the detergents and toilet soap market. The brand name became almost synonymous with

Company Analysis of NIRMA

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. 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:

Company Analysis of NIRMA

Soaps

Salt

detergents

sourcing products

Soaps:
Nirma Bath Soap ::...
Toilet soap market in India was dominated by a very few MNCs which could monopolistically
price their product. In 1992, sensing a strong need to expand the market through Penetrative
Pricing, 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 larger
volumes each year. Packed in a red colour wrapper and available in 75 gram and 150 gram pack
sizes, this soap has a Total Fatty Matter (TFM) of 60 %.

Nirma Lime Fresh Soap ::...

Company Analysis of NIRMA

This product had created a sensational marketing history in the Indian Toilet soaps market, when
it was launched in 1997. Seventeen million packs of Nirma Lime Fresh soap were sold in the
very first month of its soft launch. Packed in a poly coated 75 gm carton, which is printed on the
worlds best Cerruti 8-colour printing machine, this soap is available in green colour. With a lime
aroma that tingles in ones sensory buds for a long time, this soap contains 80% TFM. The
product launch of Nirma Lime Fresh had been extremely successful, being ranked as the Seventh
Most Successful Brand Launch for the year 1998, as ranked by the Business Standard Marketing
Derby, 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, Nirma
introduced Nirma Beauty Soap in the year 1992. Available in three different variants and pack
sizes, this soap has a TFM content of 70%. Due to its admirable perfume and a higher TFM
content, this brand, within a short span of five years, had achieved the status of the third largest
selling toilet soap brand and still continues its outstanding performance

Nima Rose ::...

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.
The remarkable and phenomenal market response received by Nima Rose soap within just two
months of its launch once again proved the merits of Nirmas commitment towards its
consumers. Nima Rose soap has got an exceptionally soft rose fragrance which remains around
body for a long time even after bath. The high TFM content of this product allows a consumer to
have pleasant bath. This brand had carved a niche in its segment by achieving leadership position
just 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 prominent
floral fragrance segments as Sandal, Rose, Jasmine, etc. Nima Sandal is a one of such product in
floral segment. This toilet soap has 80% TFM content, with rich & exotic fragrance. It promises

Company Analysis of NIRMA

benefits of Sandal oil & Turmeric powder. It is a premium product from Nima stable and is
available 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 potential
therein. This product was priced at almost one third to that of the competitor brands, resulting
into instant trial by the consumers. Owing to its unique environment-friendly, phosphate-free
formulation, the consumers became loyal to this brand, helping it to over-take the decades old
brands, in terms of volumes. This brand had been ranked as the Most widely distributed
detergent powder brand in India as per All India Census of Retail Outlets carried out in 435
urban towns by the AIMS (Asian Information Marketing & Social) Research agency [Brand
Equity - The Economic Times, March 11, 1997]. As per the ORG-MARG Rural Consumer
Panel [December 1998] survey, Nirma brand has been ranked as highest in terms of
penetration in washing powder category [BT Rural Market Watch, Business Today, June 22,
1999]

Nirma Detergent Cake ::...

Company Analysis of NIRMA

Deriving inspiration from its success in the Detergent Powder market, Nirma expanded its
product portfolio by introducing the Nirma detergent cake in 1987. Here again, the excellent
price-quality equation tempted the consumers to try the product. Available in 125g and 250g
pack 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 product
offers benefits like less melting in water, better stability, and therefore lasts longer. As per the
ORG-MARG Rural Consumer Panel [December 1998] survey, Nirma brand is ranked highest
in terms of penetration in washing cakes / bars category [BT Rural Market Watch, Business
Today, June 22, 1999].

Super Nirma Washing Powder ::...

Exploding the myth that better quality always demands higher price, Nirma introduced a spraydried blue coloured washing powder in the premium segment, in 1996. Available in 25g, 500g
and 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 a
short span of two years, had cornered substantial market share in the premium detergent segment
and 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 their
loyalty towards Super Nirma detergent cake. With a high detergency value, this product offers
quality wash to their consumers.
Super Nirma Detergent Cake was ranked as the fastest Climber for the year 1997-98 in the
detergent cake/ bars category [BUSINESS TODAY, Octobers 22, 1998].

Company Analysis of NIRMA

Nirma Popular Detergent Powder ::...

Company Analysis of NIRMA

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:

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.

Company Analysis of NIRMA

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 softlaunched, in 1000g pack size.

Industrial Products:

Company Analysis of NIRMA

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 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 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
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

Company Analysis of NIRMA

possible prices, Nirma brought in the latest technology for its manufacturing facilities at six
locations in India. Nirma's 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. 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. - 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,
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

Company Analysis of NIRMA

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
- 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

Company Analysis of NIRMA