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Nirma Case Study

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									COMPANY REPORT
     OF
 NIRMA LIMITED
  Acknowledgement….
         Before starting with the flow of this project I would like to
  thanks IBS team and especially to Mr.Pravin Patil sir, as he provided
  the opportunity and vital encouragement and support to prepare this
  report……..



  Flow of Report……..
   I.   Introduction

  II.   Heritage

 III.   Man behind the success of Nirma

 IV.    Today‟s picture of Nirma

  V.    Vision,Mision and Philosophy

 VI.    Major plants

VII.    Product range

VIII.   Sound results of Nirma

 IX.    Corporate social responsibility

  X.    SWOT analysis

 XI.    Compititors

XII.    My understanding of company profile
                   NIRMA

       Nirma is one of the few names-which is instantly recognized as
a true Indian company which took on mighty multinationals and
rewrote the marketing rules to win the heart of princess, i.e. the
consumers.

      Nirma, the proverbial “Rags to Riches” saga of Dr.Karsanbhai
patel,is a classic example of success of Indian companies in the face
of stiff compitition.startin as a one man operation in 1969,today,it has
about 14,000 employee base turnover is above 25,00 corers.

     India is one of the largest consumer economy, with burgeoning
middle class in such a case Nirma aptly concentrated all its effective
tools towards creating and building a strong preference towards its
„value money „product.
               HERITAGE
             In scorching heat of 1969 a son of small-time farmer was
trying to mix soda with few other intermediaries, to make a detergent
produce. He was a qualified graduate and was working as a junior
chemist in government laboratory. As a moon lighting activity he was
making detergent in 100 sq.ft back yard home, using bare hands and
bucket. Once the mixture is ready. He used to put it in polythene bag
and was selling door to door…….Gradually, the product became
accepted in consumer community, and the rest is known to one and
all………

          In short span, he captured the domestic market, with a
quality product. He crafted low-to-medium consumer pockets-a whole
new consumer segment detergent category. He took on mighty multi
nationals and rewrote the market rules. In true sense, he spearheaded
the   market   revolution   by   offering   innovative   „value   for   money
„products, and changed the cloth-washing habit of Indian people-the
revolution called -NIRMA………

          From initial days, Nirma believed in value-for-money equation,
in creating and maintaining long lasting relationships. It has always
remained committed to better products, at better value, for better
living…
Man Behind The Success Of

                       NIRMA
       The man behind success of Nirma phenomenon-Dr.karsanbhai k.
        Patel is awarded for various achievements.

       He has been bestowed with various awards:

       Udyog Ratna by Federation of Association of small scale
        industries of New Delhi.

       Outstanding industrialist of Eighties by Gujarat chamber of
        commerce of industries, Ahmedabad (in 1990).

       Gujarat Businessman Award in 1998 by Gujarat chamber of
        Commerce and Industry, Ahmedabad.

       Excellence     in   corporate   governance      Award   by   Rotary
        international club 2000.

       A&M Hall of Fame._____.




             Shri Karsanbhai has been awarded an Honorary Doctorate by
Florida Atlantic Florida, USA in the year 2001 in recognition of his
exceptional accomplishment as a philanthropist and businessman.

        This word has also recognized his ability, acumen and wisdom
and     in    recognizing   service     rendered   by    him    in   various
capacities.Dr.Karsanbhai Patel has worked as a chairman for two
terms to the Government of India‟s Development council for soaps and
detergent.
Nirma Today…………
  One of the world‟s largest and most integrated manufacturer of
   detergent and toiletries.

  Largest player of Indians detergent market with a share of 38%.

  2nd largest toilet soap market in the country with a share of 20%.



Business strategy………
                         Value for money




 Market creation       Backward integration      Marketing and
                                                  distribution


Marketing and Distribution….
Principal channel…..
  Lowest cost system in India.

  Speed in distribution.

  Flexibility.

  Nirma (8 location)-----Distributors(400 exclusive)----wholesaler----
   Retailer(2mn)----400mn.
Vision, Mision and
Philosophy….
  Nirma is a customer focused company committed to consistently
   offer better products and services that maximize value to the
   customer.

  This customer centric philosophy has been well emphasizes at
   Nirma through:

  Continuously exploring and developing new products and
   processes.

  Laying emphasis on cost effectiveness.

  Maintaining effective Quality Management System.

  Complying with safety, environment and social obligations.

  Imparting training to all involved on a continuous basis.

  Teamwork and active participation all around.

  Demonstrating belonging nests and exemplary behavior towards
   organization goals and objectives.
Major plants…….
Soda Ash……….




Investment of Rs.1,140 corers.

CAPACITY:

   650,000 TPA.

   770 m3/hr capacity sea water plant

   40 MSW captive co-generation.

   10000 MT solid handling.

   Energy efficient technology from Netherlands.
Soaps…………….




  Investment of Rs.200 corers.

  30,00,000 soap pieces sold per day.

  Annual sales of Rs.500 corers.

  20% market share.

  Second largest soap manufacturer.

  Four lines of 500 soaps per minute.


Edible salt……………………




  Asia‟s largest salt works.

  Spread over 30,000 acres.

  Edible salt capacity of 288,000 TPA.
Detergents………..




  50,00,000 pieces sold per day.

  38% market share.

  Largest detergent manufacturer.




Industrial Salt………..




  Asia‟s largest salt works.

  Spread over 30,000 acres.

  Industrial salt capacity of 15,00,000K.
   PRODUCT RANGE
i. Industrial Products.

ii. Consumer Products:
  Soaps

  Detergents

  Edible salt

  Scorching products




 1) Industrial Product:
  LAB(linear alkyl benzene)

  AOS(Alfa olefin suffocate)

  Sulfuric Acid.

  Glycerin.

  Soda ash

  Pure salt

  SSP(single super phosphate)
  2) Consumer products……..
  Soaps………..




Nirma Bath soap…
      Nirma entered this market with the launch of ‘Nirma Bath soap.
Although the carbolic soap segment is on decline, Nirma Bath has
generated         larger         volumes          each         year.


Nirma Lime Fresh soap………
                                           This product had created
                                 a sensational marketing history in
                                 the Indian Toilet soap market,
                                 when it was launched in 1997.
Nima Rose…………                                 The remarkable market
response received with in two months from launch of this
soap.




Nima
sandal………….




           This Toilet soap has 80% TFM content exotic fragrance.it
    promise benefits of sandal oil and Turmeric powder.It is a product
    of Nirma stable and is available in 100g and 150g packs.



Nirma beauty soap………
         With its promise to give “Better products,Better living”,Nirma
    introduced Nirma Beauty soap.
Detergents……




Nirma washing powder..

Nirma Detergent cake..




Nirma Popular Detergent
Powder…..
Nirma Clean Dish Wash Bar….




Nirma Bartan Bar……….




Super Nirma Detergent Cake…..




Nirma popular Detergent Cake………
Edible
Salt……




Nirma shudh lodized
Sound Results of Nirma……….
  Gross sales over RS.24oo core.

  ROCE of 24% and RONW of 22%.

  8 Manufacturing Locations.

  Amongst Top 10 Indian brands.

  Nation Wide distributions reach.

  2500 distributors.

  20, 00,000 Retailers.

  40 depots.


Strong Human Resource
Base….
  15,000 employees.

  500 professionals.
Corporate Social
Responsibilities……..
  Apart from profit making companies Nirma has opened up
   following institutes and foundation…

  Nirma education and research foundation

  Institute of Management

  Institute of Technology

  Institute of Diploma studies

  Institute of Pharmaceutical sciences

  NirmaLabs

  Nirma Memorial Trust and Nirma Foundation

  Chanasma Ruppur Gram Vikas Trust.
                  SWOT Analysis….
Strengths:
  Strong brand equity. Nirma is a Rs.17 billion umbrella brand
   offering consumers a broad portfolio of products at multiple price
   points in the Detergents, soaps and personal care market.

  Produce a range of industrial chemical products which primarily
   serve as raw material or intermediates for soaps and detergent
   business.

  Market leadership in detergent market and fabric wash industry
   player in toilet soap industry.

  Wide distribution network.


Weaknesses:
  High intrest burden

  Less presence in premium segment.

  Lack global tie ups and thus lacking in export market.


Opportunities:
  Exports

  Acquisition 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.
            Competition……
        In this era of competition Nirma is facing competition from
many companies of India as well as MNCs.Still because of customer
satisfaction and product reliability it is able to stand in the market
with higher profitability. In order to stand in the market while doing
advertisement Nirma takes the help of the medium like television,
news paper and various other mediums………
My understanding of company profile:
       As I have prepared this report I come to know many things
about this company.In this era and in era of globalization most of
companies believe in profit making in such a situation Nirma is that
company which takes into consideration customer satisfaction above
all aspects.Because of this reason Nirma is able to capture more and
more customer market and with that able to increase its profit.

     Apart from only producing FMCG products Nirma also opened up
education institutes by doing this Nirma also contribute in building the
strong future of India.which will be benefitial to India in many ways
thus contributing to corporate social responsibility……..

								
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