A PROJECT REPORT ON

KARSANBHAI KHODIDAS PATEL

SUBMITTED BY :
ANSU MATHEW………………… .19BSPHH01C0163
SAMBIT MOHAPATRA……… ..
SAKSHI GOEL…………………… 19BSPHH01C1008
AYUSH KASHYAP……………………… 19BSPHH01C0241
BHAVANA…………………………… ...19BSPHH01C0171

ACKNOWLEDGMENT
We would like to thank Dr. Kalaa Chenji for her continuous guidance and
support providing valuable support and insight through out the course of
the project.It was a wonderful experience working under her.
 Table of contents

SL.NO PARTICULARS PAGE NO

1 INTRODUCTION 4

2 FAMILY DETAILS AND 5

BACKGROUND

3 NIRMA STORY 6,7

4 PROMOTIONS 8

5 DISTRIBUTION STRATEGY 9

6 SWOT ANALYSIS 10

7 EARLY YEARS , AWARDS AND 11,12

ACHIEVEMENTS

8 OTHER ACHIEVEMENTS 13

9 DIRECTORS DETAILS 14

10 TRADEMARK 15

11 LATEST INFORMATION 16

12 CONCLUSION 17

Introduction:
Karsanbhai Khodidas was born in 1945, in Ruppur village in north Gujarat in a family of farmers. He
graduated in Chemistry at the age of 21. Initially, he worked as a lab technician and later served the state
Government. In 1969 at the age of 24, Karsanbhai started manufacturing phosphate free detergent
powder, Nirma (named after his daughter Nirupama) in his backyard.

Karsanbhai Patel, a chemist at the Gujarat Government ’s Department of Mining and Geology, wanted to
enter this very market and provide middle-class families like his, some relief.

Patel decided to make a detergent from scratch in his backyard in Ahmedabad, Gujarat, keeping in mind
that that the price of the product, as well as the production costs, needed to be low.

He developed the formula, manufactured a yellow-coloured detergent powder, and started selling it for
Rs 3. The brand was named Nirma, after Nirupama, Patel ’s daughter, who had passed away in an
accident.

He would go from door to door in each neighbourhood and give a ‘money back ’ guarantee with every
packet he sold.

A quality product, Nirma was also the lowest-priced branded washing powder at the time and became a
huge hit in Ahmedabad.

Soon, Patel quit his job and decided to pursue this venture full time and take on the big players in the
market. In those days, credit terms were the norm for retailers to follow. If Patel followed those, he
would have been left with a huge cash crunch. Something he could not risk.

So, he devised a brilliant plan. One that would make Nirma a household name across India.He dedicated
after office hours for manufacturing Nirma and sold on his bicycle while going to his work place, which
was 17km from his home. The handmade detergent packets were sold at Rs. 3 per kg, which was one-
third of then least priced popular detergents.

At that time domestic detergent market was limited only to premium segment and was dominated by
MNCs. Karsanbhai Patel started door-to-door selling of Nirma and priced it at Rs. 3 per kg. The next
available cheapest brand in the market at that time was Rs.13 per kg. Nirma revolutionized the whole
detergent powder segment and in a short span of time created an entirely new market segment in the
domestic detergent sector market. It gave the bigger established brands a run for their money and soon
occupied the top market share. To add to all this, Nirma was made of an innovative formulation, which
global detergent giants were later on compelled to emulate, it was phosphate free and hence
environment friendly, and the process of manufacturing was labour intensive, which offered large scale
employment.

Family’ s details of Karsanbhai’ s patel:-

Karsanbhai's two sons and son-in-law are now at leading positions in the Nirma organization:[2] 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).

Background:
The Nirma story began in 1969 and since then it has expanded its detergents (cakes and powders),
soaps, soap intermediates Alfa Olefin Sulphonate (AOS) to a level of Rs. 82 billion. Nirma had a 15.2%
share in this market and has been acknowledged as a marketing miracle. Nirma known for its focus on
cost effectiveness by integrating latest technology manufacturing facilities with innovative marketing
strategies to create world class brands, has by passed MNCs like HLL, P&G to become the market leader
(in terms of volumes) in this price-sensitive industry. In value terms, Nirma holds 15% market share in
the branded detergents segment.

The manufacturing and marketing operations were divided in several closely held group companies. In
FY97, Nirma group restructured its operations and merged 4 companies, namely Nilinta Chemicals Ltd,
Nirma Detergents Limited, Nirma Soaps and Detergents Limited and Shiva Soaps and Detergents Limited,
with its flagship Nirma Limited. Kisan Industries, the sole separate detergent manufacturing unit has
been merged with Nirma in March ’00. Nirma now owns all the detergent manufacturing facilities of the
group, besides toilet soap/other industrial chemicals manufacturing facilities and a modern packaging
unit owned by Kisan.

Marketing of products is carried out through a 100% subsidiary, Nirma Consumer Care Limited (NCCL).
NCCL is the license for using the trade marks and the brand Nirma, which are owned by Nirma Chemicals
Pvt Ltd. NCCL’s lease for the brand will be in perpetuity, except in the event of Karsanbhai & Associates
equity stake in NCCL falling below 51%.

Nirma was the lowest priced branded washing powder.Nirma also had an impact on the upper middle &
higher income families for washing of inexpensive & linens.However Nirma made all other consumer
product companies sit up and take a fresh look of their markets once again.Nirma announced the results
with their marketing strategy behind the success.The Benchmark in Indian Detergent Market was ,
Nirma a Grand success Adequate Quality at an affordable price. Unique selling proposition was Value
Based Pricing. Against the industry growth of 15%.

NIRMA STORY:
“Washing powder NIRMA,Washing powder NIRMA,

Doodh si safedi NIRMA se aaye,

Rangeen kapde bhi khil khil jaye,

Sabki pasand NIRMA

Washing powder NIRMA,Washing powder NIRMA.

NIRMA!!!”

This is the advertisement jingle of nirma that the company has been using to attract the rural and urban
consumers mainly in their advertisement campaign . The picture of a little girl twirling around in her
white frock with the familiar jingle ‘Washing powder Nirma ’ comes to mind. One of the most
recognisable Indian brands, Nirma’s story is a classic example of the success of Indian entrepreneurship
in the face of stiff competition. Nirma took on the might of giant multinationals and wrote a new chapter
in the Indian corporate history.

Nirma’s success is synonymous with its advertising and marketing strategy. When Karsanbhai Patel, the
founder of the brand, started selling his detergent powder, he decided to call it Nirma, derived from the
name of his daughter Nirupama. In the early years, the Nirma packet featured a lady washing a garment.
Later, however, the design was changed and an image of his daughter was featured on the pack. The
white dancing girl, featured in Nirma’s television advertising, is perhaps the most enduring image of the
brand.

Nirma created an entirely new market segment in the domestic marketplace and quickly emerged as a
dominant market player. In line with this thought process, the recent two campaigns have been
conceptualised for Nirma detergent and Super Nirma.

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, 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 better
in rural market and this will be a big hit.

For getting more success in rural markets company have to take care about the 4 P’ s of marketing
(PRODUCT, PRICE ,PLACE AND PROMOTION) such as For Packaging it is being simple with no color and
design. So that rural people can identify it in a clear way that it is a washing powder NIRMA with having a
girl in skirt pasted on the packs.

The second P that is Price, the brand was selling like a hotcakes and the market for Nirma grew from 0%
-61.6% specially In rural areas and the prices are still set only for the rural people so that they are
economically owned this product.

The third P is Place, comprehensive & widespread distribution network so that they can ruled over the
rural market.

The fourth P is Promotion, Nirma used radio, posters, banners & mobile vans as its media options to
aware the rural people about their products.

The company is hoping on the advantages of the in-house production of soda ash and LAB, which
together constitute 63 percent of the total costs of soaps and detergents. It is expecting to boost its sales
revenue by selling salt which is the by-product of soda ash. The company will be marketing the salt called
“Nirma Salt” on a platorm of “value for money”, which is common to all its other products. At the
moment Nirma Salt is being test marketed in rural areas of Gujarat.
PROMOTION OF NIRMA IN RURAL AREAS:
Karsanbhai does not start up a media assault until his entire distribution network has the product in
place. Nirma believes in advertising only after they have launched a product in place. Their belief is that
nothing can be more irritating for a customer than to see a product advertised, and then find it has not
reached his grocer. Advertising just tells people that a product is available. After that, the product has to
stand on its own feet on quality and price. As televisions reach spread in India during the late 1970s so
too did Nirma’s. The little girl on the pack became a symbol that was almost generic with a good quality,
low priced detergent. A catchy jungle hammered home the message to millions of housewives. It was as
if a down market consumer revolution had taken off.

While advertising did not appear as a cost in his initial budgets, by the late 70 ’s as televisions slowly
started to spread into rural India, so did the Nirma ad campaign, with its simple message and catchy
jingle. By the early 80’s Nirma became synonymous with good quality and low-price. The stockists were
also responsible for promotions and they funded 50% of promotional expenditure for their goods.
Nirma’s sales reached a rate of growth that was two to three times that of the industry in general. As a
result of all the above measures Nirma survived and flourished on what looked like a miniscule margin
per unit. The recent advertisement that has been aired on television has been devised keeping in mind
the psyche and choice of the middle class housewives. With the increase the popularity of the T.V. Soaps
and there amplified impact on their thinking and daily life, these serials have become an inseparable
part of their lives. The new commercial has thus tried to encash on this very aspect. The commercial is a
reflection of these soaps and in a way a mockery of these T.V. serials. Thus the commercial has been
successful in attracting a substantial amount of the audience. Furthermore Nirma needed a “new and
improved look” in its promotional activities which it has successfully achieved through this new
commercial.

Distribution Strategy in rural areas:

Dealer

Whole seller

Agents

Retailer

For attracting more customers Nirma using following Promotional tools in rural market:

TV Commercial

Radio

News Paper

POP display

Wall panting

Contest in Melas or Haats

Video vans

Nirma offers a wide range of products

Soaps

Detergents

Edible salts

Scouring products.

SWOT ANALYSIS OF NIRMA WASHING POWDER IN RURAL AREAS

Strengths:

Strong Brand equity. Nirma is a Rs.17 billion umbrella brand offering consumers a broad portolio of
products at multiple price points in the Detergents, Soaps & Personal Care market.

Produces a range of industrial chemical products which primarily serve as raw material or intermediates
for Soaps & Detergents business.

Market leadership in detergents market and fabric wash industry and second largest player in Toilet
soaps industry.

Wide distribution network.

Weaknesses:

High interest burden.

Less presence in premium segment.

Lack global tie ups and thus lacking in export markets.

Opportunities:

Exports.

Acquisitions for strengthening its distribution tie ups.

Entry into other categories like shampoos, toothpastes and fabric whiteners.

Threats:

MNCs coming to India particularly in Toilet and Soap industry.

Emergence of small but strong regional players.

Early years:
Nirma, is now being recognized as the:
9th among top FMCG brands in India, (A&M- Mode- 2002)

Selected as the super brand of the country for 2003-04

Most popular brands in the Detergent Powders- Economy category (FMCG awards 2003)

Karsanbhai stayed focused on cost reduction strategies to cement the slot for Nirma in the market.
Consequently, Nirma adopted backward integration strategy while introducing latest technology to its
production facilities to offer a better product at a reasonable price.

Awards and Achievements :

In 2009, Karsanbhai was ranked #92 by Forbes magazine, for the list of India's Richest persons.[3]

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.

Patel has been conferred with Padma Shri Award for the year 2010.[4] The award was formally conferred
by the President of India Mrs Pratibha Patil.

It was also announced on June 7, 2013 that he bought 40 crores six-seater chopper. After Adani Group
chairman Gautam Adani and Zydus group promoter Pankaj Patel, Karshanbhai is the third Ahmadabad-
based industrialist to buy a chopper.

In 2017, Karsanbhai was ranked #38 by Forbes magazine, for the list of India's Richest persons ($ 640
million).

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. It also owns Nirma University.

The University emphasizes on the all round development of its students. It aims not only at producing
good professionals, but, also good and worthy citizens of great country, aiding in its overall progress and
development.
The objects of the university are to develop the knowledge of science & technology for it advancement
of mankind in general and to provide for arrangement for national and global participation in the field of
higher & professional education including technical education dental, medical, paramedical,
physiotherapy, pharmacy, commerce, management, education and humanities.

It aims at establishing close linkages with the industry to make teaching, research and training at the
university relevant to the needs of the economy, at national and global level and to develop training
facilities and make arrangements for training in higher education including professional education and
allied fields.

The Nirma university is a confederation of Institutes and faculties. The University functions with a
relatively small administration, and with central bodies consisting of offices and academic personnel of
the University and the University’s governance structure is essentially democratic.

The key to success of a university has been its people and the various activities of the university are
governed by different bodies of people constituted for specific purposes of facilitating academic
excellence at the university. The academic and general management of the university are taken care of
by these bodies

Other achievements:
Nirma Education and Research Foundation (established in 1994), presently includes following top grade
–

Institute of Technology (1995)

Institute of Management (1996)

Institute of Diploma Studies (1997)

Institute of Pharmacy (2003)

Institute of Science (2004)

Institute of Law (2007).

All of the above institutions have emerged as of excellence offering various programmes ranging from
undergraduate to doctoral levels in technology, engineering, business, pharmacy and sciences.

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.

Karsanbhai Patel has won many accolades on his way to success. In 1990, The Federation of Association
of Small Scale Industries of India, New Delhi, awarded him with the ‘ Udyog Ratna’. The Gujarat Chamber
of Commerce felicitated him as an 'Outstanding Industrialist of the Eighties'. The Govt. of India twice
appointed him Chairman of the Development Council for Oils, Soaps & Detergents. Karsanbhai was
awarded an “Honorary Doctorate” by Florida Atlantic University, recognizing his exceptional
entrepreneurial and philanthropic accomplishments.

Challenging established multinationals needs extreme courage and to win in the long run needs
marketing foresight. Karsanbhai Khodidas Patel, once a government servant with the knowledge and
experience as a chemist offered a good product and was aggressive in marketing strategy. He made the
multinationals to follow Nirma washing powder and introduce substitutes such as nirma salt, nirma soap
etc. In this respect, the Nirma case can be compared to those of Ford, Apple, Sony, and Honda, all one-
of-a-kind entrepreneurs who built their empire on gut feeling rather than following the classical patterns
taught in business schools. This is a genuine road from rags-to-riches one would like to follow.
Trademark : NIRMA
Latest information :
Nirma Limited was registered at Registrar of Companies Ahmedabad on 25 February, 1980 and is
categorised as Company Limited by Shares and an Indian Non-Government Company.

Nirma Limited's Corporate Identification Number (CIN) is U24240GJ1980PLC003670 and Registeration

Number is 003670.

Nirma Limited registered address on file is Nirma House Ashram Road Ahmedabad Gujarat India 380009,
Ahmedabad - 380009, Gujarat, India.

Nirma Limited currently have 10 Active Directors / Partners: Shrenikbhai Kasturbhai Lalbhai, Pankaj
Ramanbhai Patel, Kaushikbhai Nandubhai Patel, Hiren Karsanbhai Patel, Kalpesh Ambubhai Patel,
Rajendrabhai Dahyabhai Shah, Karsanbhai Khodidas Patel, Chinubhai Ramanlal Shah, Rakesh Karsanbhai
Patel, Paresh Balmukund Sheth, and there are no other Active Directors / Partners in the company
except these 10 officials.

Nirma Limited is involved in Manufacturing - Metals & Chemicals, & Products Thereof Activity and
currently company is in Active Status.

Today nirma has declined its share in FMCG products to less than 6% and leading detergent is Ghari
with 17.3 %. The worlds biggest cement industry LAFARGE has agreed to sell its business to Nirma for
around $14 billion, now it has become to NOVOCO VISTA CORP.
Conclusion:
You may or may not use Nirma’s detergent powder to wash your clothes today, but it is highly unlikely
that you would be unfamiliar with this jingle, or the advertisement featuring a young girl in a spotless
white frock, twirling around playfully.

The catchy jingle and the young girl were exactly what Karsanbhai Patel, the founder of the Nirma brand,
used to capture India’s attention to and overtake the big names in the market in the early 1980s.

This is Patel’s story of how he took a new detergent brand from his backyard to every middle-class house
in India.