History

In 1969, Karsanbhai Patel, a chemist at the Gujarat Government's Department of Mining andGeology 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 atRs 15. Soon, there was a huge demand for Nirma in Kishnapur (Gujarat), Patel's hometown.He started packing the formulation in a 10x12ft room in his house. Patel named the powder asNirma, after his daughter Nirupama. Patel was able to sell about 15-20 packets a day on his wayto the office on bicycle, some 15 km away. Thus began the great journey.By 1985, Nirma washing powder had become one of the most popular detergent brands in manyparts of the country. By 1999, Nirma was a major consumer brand – offering a range ofdetergents, soaps and personal care products.Production

“The implementation of Honeywell’s advanced process control solution at the LAB complex has improved the dynamic control of both front- and back-end processes while optimizing production and reducing energy in addition to substantial monetary savings.”

Based in India, Nirma is one of the world’s largest and most integrated manufacturers of detergents and toiletries. Nirma sought ways to reduce its fuel and power consumption and to attain consistent control of parameters to maximize production at its linear alkyl benzene (LAB) plant. The company also wanted to optimize the recovery from costly feed kerosene used in its manufacturing process.

Nirma engaged Honeywell and UOP, a Honeywell company dedicated to delivering cutting-edge technology and processes, to provide engineering services to design and implement advanced process control (APC) at its LAB plant. The scope of the APC project included complete front-end and back-end processes.

Some of the benefits achieved by Nirma since implementing Honeywell APC solutions include:

• N-paraffin recovery improvement from feed kerosene• Reduction in fuel consumption• Reduction of energy consumption• Sustaining maximum production and consistent control of plant parameters leading to reduction in overall standard deviation

Marketing Strategy

As Nirma started to grow and the salesmen started to reach out to the retailers, who were working with multinational brands till then, did not pay attention and used to take the stock on long credits and as a special favour. As and when the salesmen would go asking for the payment either he will be shown the door or may be offered a part payment even in the condition that the total material was sold. To the insisting ones they will give the material back asking them not to show up again. This carried on for some time and there was huge accumulated credit in the

market making it difficult for the Nirma to operate. This is when Karsanbhai said enough was enough and called the entire team one day and decided on a drastic step which was risky but revolutionary. Karsanbhai was realizing the power of advertising and promotions which made him take this step.

The day after the meeting all the team member went out in the market and collected either cash or material. Next day on retailers were shocked, competition was dazed and market was without Nirma. For full one month the media was carpet bombed with the campaign WASHING POWDER NIRMA, WASHING POWDER NIRMA, DOODH SI SAFEDI......

Now what this did was kick start the consumer demand. People started asking for Nirma but it was not to be found. When the demand reached its peak then the Retailers started to look for Nirma. This is what Karsanbhai was waiting for.

One fine day the team was called for another meeting and Delivery vans were cleaned, material loaded and NIRMA hit the market again. Now Nirma was dictating terms. All cash on delivery, no credits and tight supply. Overnight the brand was changed and within no time gave a fantastic fightback to the leading global brands.

The best case of - Give your consumer what he wants, when he wants, where he wants and at the price he wants, selling will be done quite automatically. This is the marketing 'mantra' of Nirma.

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 and it's going to touch the $ 1000 million mark soon.

Business Development

Nirma also had innovative marketing strategies. In the mid-nineties, Nirma successfullyextended its brand to other product categories like premium detergents (Nirma Super WashingPowder and Detergent Cake), premium toilet soaps (Nirma Premium, Nima Sandal, Nirma LimeFresh). It followed its original marketing and pricing strategies in the economy segment as wellas in the premium segment. In 2000, the company entered the hair care market with NirmaShikakai, Nirma Beauty Shampoo, and Nirma Toothpaste. Unlike detergents, soaps were apersonal-care product. Many customers had deep psychological bonds with their soap brands.Moreover, the market was segmented by HLL by price, by scent appeal, and by brandpersonality.

Future

Nirma, the Rs 2,243 crore detergent-maker and owner of the Nirma brand, is betting big on the pharmaceutical sector. The company, is in the process of acquiring assets of the sick Core Healthcare, the largest intravenous fluid manufacturer in India. Nirma is drawing up plans to set up a separate healthcare division — Nirlife for making its pharma foray later during the current financial year. The company is planning to launch a slew of products including large and small volume parenterals, products for renal care and specialised parenteral nutrition, which will be launched in the current financial year. The products will be launched in both the domestic and the international market.

Sources in the industry told ET that the company will launch the products under the same brand name 'Nirlife'.

The healthcare division will oversee complete pharmaceutical activity including production and marketing of products manufactured at Core Healthcare's unit at Sachana in Gujarat.

The unit is located in sprawling 650 acre land. "The products which will be launched include small and large volume parenterals, total parenteral nutrition, intensive care, renal care and medical devices. The company is aiming to have a presence in the international market as well," sources in the industry said.

The company has started locating distributors and stockists for their products. When contacted Nirma officials refused to comment.

For injectables, Nirma is looking at exploring the international market as well. According to sources the company will be looking at registering their products, mostly parenterals, in the overseas market.For its pharma plans the company is now planning to hire pharma professionals in near future. "The total HR requirement for setting up infrastructure will be huge," sources said.Ailing Core Healthcare, promoted by Sushil Handa, had been taken over by the Asset Reconstruction Company of India (ARCIL). Under the restructuring exercise Nirma emerged as the highest bidder for Core. The proposal for merging Core into Nirma is now pending final approval from the Gujarat High Court.