Tuesday, October 1, 2013

CS4 NIRMA

Dr. Karsanbhai Patel started Nirma in 1969, and went on to create a whole new segment in the Indian domestic detergent market. During that time the domestic detergent market only had the premium segment and there were very few companies, mainly the MNCs, which were into this business. Karsanbhai Patel used to make detergent powder in the backyard of his house in Ahmadabad and carry out door to door selling of his hand made product. He gave money back guarantee with every pack that was sold. Karsanbhai Patel managed to successful detergent powder for Rs 3 per kg, when the cheapest detergent at that time was Rs 13 per kg. So he was able to successfully target the middle and lower middle income segment.
                Sabki pasand nirma.........................
Nirma became a huge success and all this was a result of Karsanbhai Patel's entrepreneurial skills. Karsanbhai Patel had good knowledge of chemicals and he came with nirma detergent which was a result of innovative combination of the important ingredients. Consumers now had a quality detergent powder having an affordable price tag. Nirma focused on cost reduction strategies to make a place for itself in the market. In the 1980 nirma moved ahead of surf, a detergent by HLL, to capture a large market share. Later, nirma ssuccessfully entered in the premium segment of soaps and detergent. Nirma went to become the largest detergent and the second largest soap company in india. Nirma had more than 35% market share in detergent segment and around 20% market share in the toilet segment. The company got listed on the stock exchanges  in the year 1994.
       According to forbes in 2005 karsanbhai patel's net worth was $ 640 m and it is going to touch the $ 1000 m mark soon.

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