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    Company Analysis of NIRMA

    Sv College of Engineering

    Company analysis

    CONTENTS

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    Company Analysis of NIRMA

    1. Company overview

    2. Company history3. Key employees of the company

    4. ocations

    !. Services an" pro"#cts

    $. Top competitors of the company

    %. Stat#s of the competitors

    &. E'pert views

    (. S)OT analysis

    1*. +a,or fin"ings

    11. S#ggestion

    12. Concl#sion

    N-+/

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    Company Analysis of NIRMA

    -NTO0CT-ON

    Nirmais a gro#p of companies ase" in the city of /hme"aa" in western -n"ia that

    man#fact#res pro"#cts ranging from cosmetics soaps "etergents salt so"a ash /5 an"-n,ectiles. Karsanhai 6atel a well 7nown entreprene#r an" philanthropist of 8#,arat starte"Nirma as a one9man operation. To"ay Nirma has over 1!*** employees an" a t#rnover of overs. 3!!* crores. -n 2**4 Nirma:s "etergent approache" &***** tonnes ; one of the largestvol#mes sol" in the worl" ; #n"er a single ran" :N-+/:.

    CO+6/N< 6O=-ENirma imite"

    Type 6#lic

    -n"#stry =+C8

    =o#n"e" 1($(

    >ea"?#arters /hme"aa" -n"ia

    Key people Karsanhai 6atel @C+0A

    6ro"#cts Nirma "etergent Nima soaps

    even#e s. 3!*4 crores @2*11 stan"aloneA s. !**& crores SB1.12 5illion @2*11 consoli"ate"AEmployees 14***

    )esite www.nirma.co.in

    CO+6/N< OE-E)

    Starting as a one9pro"#ct one9man o#tfit from a 1** s? ft @(.3 m2

    A room in 1($( Nirma ecamea very s#ccessf#l company within three "eca"es. The company ha" m#lti9locationalman#fact#ring facilities an" a roa" pro"#ct portfolio #n"er an #mrella ran" ; Nirma. Thecompany:s mission to provi"e D5etter 6ro"#cts 5etter al#e 5etter ivingD contri#te" a great"eal to its s#ccess.

    Nirma s#ccessf#lly co#ntere" competition from > an" carve" a niche for itself in the lower9en" of the "etergents an" toilet soap mar7et. The ran" name ecame almost synonymo#s with

    http://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/US$http://www.nirma.co.in/http://en.wikipedia.org/wiki/US$http://www.nirma.co.in/http://en.wikipedia.org/wiki/Rs
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    Company Analysis of NIRMA

    low9price" "etergents an" toilet soaps. >owever Nirma realie" that it wo#l" have to la#nchpro"#cts for the #pper en" of the mar7et to retain its mi""le class cons#mers who wo#l"gra"#ate to the #pper en". The company la#nche" toilet soaps for the premi#m segment.

    >owever analysts felt that Nirma wo#l" not e ale to repeat its s#ccess story in the premi#msegment.

    -n 2*** Nirma ha" a 1!F share in the toilet soap segment an" more than 3*F share in the"etergent mar7et. /i"e" y growth in vol#mes an" commissioning of ac7war" integrationpro,ects Nirma:s t#rnover for the year en"e" +arch 2*** increase" y 1%F over the previo#sfiscal to s. 12.1% n.

    Nirma Limited CEO, CFO, Executives & Contacts

    1. Shreni7hai alhaiNon9E'ec#tive -n"epen"ent 0irector Shri. Shreni7hai K. alhai is Non9E'ec#tive-n"epen"ent 0irector of Nirma t". Shri. Shreni7hai K. alhai is an in"#strialist.

    2. a7esh 6atelNon9E'ec#tive ice Chairman of the 5oar" Shri. a7esh K. 6atel is Non9E'ec#tive iceChairman of the 5oar" of Nirma...

    6ro"#ctsCons#mer pro"#cts

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    Company Analysis of NIRMA

    Soaps "etergents

    Salt so#rcing pro"#cts

    Soaps

    Nirma Bath Soap ::...

    Toilet soap mar7et in -n"ia was "ominate" y a very few +NCs which co#l" monopolisticallyprice their pro"#ct. -n 1((2 sensing a strong nee" to e'pan" the mar7et thro#gh 6enetrative6ricing Nirma entere" this mar7et with the la#nch of GNirma 5ath SoapH which is a carolic@e"A soap. /ltho#gh the carolic soap segment is on "ecline Nirma 5ath has generate" largervol#mes each year. 6ac7e" in a re" colo#r wrapper an" availale in %! gram an" 1!* gram pac7sies this soap has a Total =atty +atter @T=+A of $* F.

    Nirma Lime Fresh Soap ::...

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    Company Analysis of NIRMA

    This pro"#ct ha" create" a sensational mar7eting history in the -n"ian Toilet soaps mar7et whenit was la#nche" in 1((%. Seventeen million pac7s of Nirma ime =resh soap were sol" in thevery first month of its soft la#nch. 6ac7e" in a poly coate" %! gm carton which is printe" on the

    worl"Hs est Cerr#ti &9colo#r printing machine this soap is availale in green colo#r. )ith a limearoma that tingles in oneHs sensory #"s for a long time this soap contains &*F T=+. Thepro"#ct la#nch of Nirma ime =resh ha" een e'tremely s#ccessf#l eing ran7e" as the Seventh+ost S#ccessf#l 5ran" a#nch for the year 1((& as ran7e" y the 5#siness Stan"ar" +ar7eting0ery 1((&. @as feat#re" in The Strategist I#arterly J#ly9Septemer 1((&A.

    Nirma Beauty Soap ::...

    )ith its mar7et promise to offer 5etter 6ro"#cts 5etter al#e 5etter ivingL Nirmaintro"#ce" GNirma 5ea#ty SoapH in the year 1((2. /vailale in three "ifferent variants an" pac7sies this soap has a T=+ content of %*F. 0#e to its a"mirale perf#me an" a higher T=+content this ran" within a short span of five years ha" achieve" the stat#s of the thir" largestselling toilet soap ran" an" still contin#es its o#tstan"ing performance

    Nima Rose ::...

    Nima 5artan 5ar also a""resses the emerging mar7et of sco#ring ars. -t is eing offere" in 2**gan" 4**g pac7 sies. =rom initial la#nch "ays it has got h#ge mar7et s#ccess an" consistentlyperforming well.

    The remar7ale an" phenomenal mar7et response receive" y Nima ose soap within ,#st twomonths of its la#nch once again prove" the merits of NirmaHs commitment towar"s itscons#mers. Nima ose soap has got an e'ceptionally soft rose fragrance ; which remains aro#n"o"y for a long time even after ath. The high T=+ content of this pro"#ct allows a cons#mer to

    have pleasant ath. This ran" ha" carve" a niche in its segment y achieving lea"ership position,#st within two months of its la#nch. -t is availale in 1**g an" 1!*g pac7 sies.

    Nima Sanda ::...

    Over the perio" -n"ian toilet soap mar7et has fragmente" M has seen emergence of prominentfloral fragrance segments as San"al ose Jasmine etc. Nima San"al is a one of s#ch pro"#ct infloral segment. This toilet soap has &*F T=+ content with rich M e'otic fragrance. -t promises

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    Company Analysis of NIRMA

    enefits of San"al oil M T#rmeric pow"er. -t is a premi#m pro"#ct from Nima stale an" isavailale in 1**g an" 1!*g pac7s.

    Cons#mer 6ro"#cts ; 0etergents

    Nirma !ashin" #o$der ::...

    This pro"#ct create" a mar7eting miracle when intro"#ce" in the "omestic mar7etplace. -n 1($(when the "etergents were price" so e'oritantly that for most of the -n"ians it was a l#'#ry item.Nirma envisione" the vast =aric )ash mar7et segment an" sense" a tremen"o#s potentialtherein. This pro"#ct was price" at almost one thir" to that of the competitor ran"s res#ltinginto instant trial y the cons#mers. Owing to its #ni?#e environment9frien"ly phosphate9freeform#lation the cons#mers ecame loyal to this ran" helping it to over9ta7e the "eca"esH ol"ran"s in terms of vol#mes. This ran" ha" een ran7e" as the +ost wi"ely "istri#te""etergent pow"er ran" in -n"iaL as per /ll -n"ia Cens#s of etail O#tlets carrie" o#t in 43!

    #ran towns y the /-+S @/sian -nformation +ar7eting M SocialA esearch agency 5ran"E?#ity 9 The Economic Times +arch 11 1((%. /s per the OR%'(R% Rura Consumer#ane0ecemer 1((& s#rvey Nirma ran" has een ran7e" as hi"hest in terms o)penetrationin washing pow"er category 5T #ral +ar7et )atch 5#siness To"ay J#ne 221(((

    Nirma *eter"ent Ca+e ::...

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    Company Analysis of NIRMA

    0eriving inspiration from its s#ccess in the 0etergent 6ow"er mar7et Nirma e'pan"e" itspro"#ct portfolio y intro"#cing the Nirma "etergent ca7eL in 1(&%. >ere again the e'cellentprice9?#ality e?#ation tempte" the cons#mers to try the pro"#ct. /vailale in 12!g an" 2!*g

    pac7 sies this ran" has "one e'ceptionally well. /-+S s#rvey ran7e" Nirma "etergent ca7e asThe +ost wi"ely "istri#te" "etergent ca7e ran"L. 0#e to its #ni?#e form#lation this pro"#ctoffers enefits li7e less melting in water etter staility an" therefore lasts longer. /s per theOR%'(R% Rura Consumer #ane0ecemer 1((& s#rvey Nirma ran" is ran7e"hi"hestin terms o) penetrationin washing ca7es P ars category 5T #ral +ar7et )atch 5#sinessTo"ay J#ne 22 1(((.

    Super Nirma !ashin" #o$der ::...

    E'plo"ing the myth that Getter ?#ality always "eman"s higher priceL Nirma intro"#ce" a spray9"rie" l#e colo#re" washing pow"er in the premi#m segment in 1(($. /vailale in 2!g !**gan" 1***g pac7s this pro"#ct o#t9classe" its competitor ran"s. hou"h, priced amost - /esser, thus providin" a very attractive 0vaue)ormoney1 proposition.This ran" within ashort span of two years ha" cornere" s#stantial mar7et share in the premi#m "etergent segmentan" contin#es to perform well.

    Super Nirma *eter"ent Ca+e ::...To meet the growing aspirations of cons#mers an" to offer them val#e9chain pro"#ct portfolio

    Nirma intro"#ce" S#per Nirma 0etergent Ca7e in 1((2. /vailale in 12!g an" 2!*g pac7 siesthis pro"#ct within a short span convince" the cons#mers of competitor ran"s to switch theirloyalty towar"s S#per Nirma "etergent ca7e. )ith a high "etergency val#e this pro"#ct offers?#ality wash to their cons#mers.

    S#per Nirma 0etergent Ca7e was ran7e" as the fastest Climer for the year 1((%9(& in the"etergent ca7eP ars category 5S-NESS TO0/

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    Company Analysis of NIRMA

    Nirma #opuar *eter"ent #o$der ::...

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    Company Analysis of NIRMA

    To cater to the nee"s of the specific target a#"ience Nirma la#nche" a goo" ?#ality pro"#ct ata very affor"ale price. The o,ective is to convert the non9#sers of "etergents into #sers an"

    also prevent the competitors an" local man#fact#rers to l#re away the prospective Nirmacons#mers y s#9stan"ar" pro"#cts. This pro"#ct has create" a loyal cons#mer ase of its ownan" has estalishe" s#stantial amo#nt of vol#mes. -t is availale in pac7 sies of !**g an"1***g pac7 sies.

    Nirma 6op#lar 0etergent Ca7e ...

    The positioning of Nirma 6op#lar 0etergent Ca7e is similar to that of Nirma 6op#lar 0etergent6ow"er. This pro"#ct is availale in 12!g an" 2!*g pac7 sies targete" to first9time "etergentca7e #ser segment.

    Cons#mer 6ro"#cts ; Salt

    Nirma Sh#"h -o"ie" Salt ...

    Nirma Sh#"h Salt man#fact#re" with state9of9art pro"#ction facilities #sing the vac##m"rying process is the only salt in the co#ntry to e man#fact#re" in an entirely a#tomate" plantan" is free from any man#al han"ling involve" at any stage of man#fact#ring. The f#llya#tomate" process helps in controlling each an" every parameter so as to s#stain the asiccharacteristics an" ?#ality of the pro"#ct with a g#arantee of eing the est in the ?#alityparameters of io"ine content free flow nat#re saltiness whiteness an" the sie of the gran#les.

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    Company Analysis of NIRMA

    -t is eing offere" in an eye9catching an" colo#rf#l special moist#re proof 1 7g pac7.

    Cons#mer 6ro"#cts 9 So#rcing 6ro"#cts

    Nirma Clean 0ish )ash 5ar ...Sco#ring ar is a potential emerging mar7et in -n"ia. 5y offering Nirma Clean 0ish )ash 5arNirma trie" to tap this h#ge mar7et. -t is also a one9type of val#e pro"#ct to the ran" loyalcons#mers catering their "istinct nee"s. This pro"#ct li7e other pro"#cts from Nirma staleoffers est ?#ality at the most affor"ale prices. -t is availale in 3**g pac7 sie.Nima 5artan 5ar ...

    Nima 5artan 5ar also a""resses the emerging mar7et of sco#ring ars. -t is eing offere" in2**g an" 4**g pac7 sies. =rom initial la#nch "ays it has got h#ge mar7et s#ccess an"consistently performing well.

    -nspire" y the s#ccess of the ar Nima 5artan 0ishwash 6ow"er was also s#se?#ently soft9la#nche" in 1***g pac7 sie.

    -n"#strial 6ro"#cts

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    Company Analysis of NIRMA

    /5 @ inear /l7yl 5enene A

    /OS @ /lfa Olefin S#lfonate A

    S#lf#ric /ci"

    8lycerin

    So"a /sh

    6#re salt

    ac##m Evaporate" -o"ie" Salt

    SS6 @ Single S#per 6hosphate A

    So"i#m Silicate

    Company history

    >istory-n 1($( "r. 7arsanhai patel a chemist at the 8#,arat 8overnment:s 0epartment of +ining an"8eology man#fact#re" phosphate free Synthetic 0etergent 6ow"er an" starte" selling itlocally. The new yellow pow"er was price" at s. 3.!* per 7g at a time when >:s S#rf was

    price" at s 1!. Soon there was a h#ge "eman" for Nirma in #pp#r @8#,aratA 6atel:shometown. >e starte" pac7ing the form#lation in a 1*'1*ft room in his ho#se. 6atel name" thepow"er as Nirma after his "a#ghter Nir#pama. 6atel was ale to sell ao#t 1!92* pac7ets a "ayon his way to the office on icycle some 1! 7m away. 5y 1(&! Nirma washing pow"er ha"ecome one of the most pop#lar ho#sehol" "etergents in many parts of the co#ntry.

    5y 1((( Nirma was a ma,or cons#mer ran" ; offering a range of "etergents soaps an"personal care pro"#cts. -n 7eeping with its philosophy of provi"ing ?#ality pro"#cts at the est

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    Company Analysis of NIRMA

    possile prices Nirma ro#ght in the latest technology for its man#fact#ring facilities at si'locations in -n"ia. Nirma:s s#ccess in the highly competitive soap an" "etergent mar7et wasattri#te" to its ran" promotion efforts which was complemente" y its "istri#tion reach an"

    mar7et penetration. Nirma:s networ7 consiste" of ao#t 4** "istri#tors an" over 2 millionretail o#tlets across the co#ntry. This h#ge networ7 enale" Nirma to ma7e its pro"#ctsavailale to the smallest village.

    -n Novemer 2**% Nirma p#rchase" the /merican raw materials company Searles alley+inerals -nc. 9 ma7ing it among Top9% So"a /sh man#fact#rer in the worl".

    Company >istory 9 Nirma1(&*

    9 The Company was incorporate" on =er#ary 2! as 6rivate imite" Company to carry on the

    #siness of man#fact#ring an" selling Synthetic 0etergents Soaps Chemicals an" /llie"6ro"#cts. The Company is promote" y Shri Karsanhai K. 6atel.

    1((3

    9 The Company ecame a "eeme" p#lic limite" Company #n"er Section 439/ of theCompanies /ct 1(!$ an" was then converte" into a 6#lic imite"

    9Company y passing a special resol#tion at the E'tra9or"inary 8eneral +eeting hel" onNovemer *&.

    9The Company proposes to set #p a 12** tp" @42**** tpaA So"a /sh 6ro,ect in technical

    collaoration with /KQO NO5E EN8-NEE-N8 5 @/KQOA of Netherlan"s ase" on the0ry ime Technology as a ac7war" integration to the e'isting activities.

    9The company proposes to set #p a facilities to man#fact#re Toilet Soaps with an installe"capacity of $**** tpa an" Synthetic 0etergents with installe" capacity of ao#t 3***** tpa.The Company will e entering into a long term agreement with the 5havnagar +#nicipalCorporation for provi"ing of re?#isite ?#antity of sewage water.

    1((4

    9 The Company came o#t with its mai"en p#lic iss#e of E?#ity Shares of s.1*P9 each forcash at a premi#m of s.1**P9 per share aggregating for s.44.%& crores in =er#ary.

    9 The Company also vent#re" into man#fact#re of =atty /ci" 8lycerine Toilet SoapsS#lph#ric /ci" an" /lfa Olefin S#lphonate @/OSA.

    9 Nirma t". has ecome a m#lti pro"#ct company representing a wi"e array of pro"#ct linesstarting from 0etergent 6ow"ers an" personal care pro"#cts li7e Toilet Soaps to chemicals li7eS#lph#ric /ci" 8lycerin /lfa Olefin S#lphonates =atty /ci"s O'ygen etc.

    9 The 5ran" name N-+/ is owne" y Nirma Chemical )or7s 6vt. t". which has given a

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    Company Analysis of NIRMA

    non e'cl#sive license to /+E therey allowing /+E to #se the Nirma ran" tra"e mar7s.

    9 The Company sells S#lph#ric /ci" Ole#m /lfa Olefin S#lphonates 8lycerin an" O'ygen

    "irectly to in"#strial cons#mers on a reg#lar asis.

    9 The Company has also installe" 2$ )in" T#rine 8enerators @)T8A )ith a capacity of!.(4 +) to generate power at 0han7 0ist. a,7ot.

    9 Nilnita Chemicals imite" will e amalgamate" with the Company )ith effect from 1st/pril.

    9 The Company is setting #p a "esalination facility for pro"#cing /o#t 2** c#. mtrs per "ayof soft water.

    9 The Company proposes to estalish M0 Centre at site for etter waste #tilisation an"

    infrastr#ct#ral etterment.

    9 The Company has entere" into a +emoran"#m of n"erstan"ing with -n"ian OilCorporation t". for release y -.O.C.. of &**** +T6/ net of /5 fee" stoc7 in case theCompany "eci"es to estalish a plant for the pro"#ction of &**** +T6/ of inear /l7yl5enene.

    9 The company has also installe" e?#ipments for testing the io9"egra"aility of vario#ss#rfactants.

    1((!

    9 The Company is setting #p salt wor7s facility at Kalatalav on 2!*** acres of lan" a",acentto its propose" So"a /sh plant for meeting its entire salt re?#irement.

    9 The Company has entere" into an /greement with >#mphrey M 8lasgow Cons#ltants t".for 0etaile" Engineering constr#ction s#pervision incl#"ing Civil an" /rchitect#ral 0esignsan" 6roc#rement Services for the So"a /sh 6lant.

    9 The Company wo#l" e entering into E?#ipment S#pply /greement@sA )ith the Critical6lant M E?#ipment S#ppliers which inter9alia sho#l" provi"e for performance g#arantee ofthe e?#ipment penal provisions for non9f#lfilment of g#arantee" norms "elay in "elivery an""efects in wor7manshipP"esign etc.

    1(($

    9 0#ring the year Company has intro"#ce" Shampoo which has een See" mar7ete" an" haseen accepte" well y the cons#mers.

    9 0#ring the year on acco#nt of mo"ernisation Company has s#ccessf#lly man#fact#re" -68ra"e @6harmace#tical 8ra"eA 8lycerin an" the same has een well accepte" an" is in goo""eman".

    9 The Company has technology tie #p with O6 -nter /mericana -nc. .S./. who will e

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    Company Analysis of NIRMA

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