Professional Documents
Culture Documents
Nirma (1960s)
Karshanbhai Patel
Side Income
Nirma always plays Price war. With its low cost Strategy.
SURF 15 rs.
1969
1972 1980 1984 1988
Become Company
NoRestriction on Capacity
Nirma Benefited at
Investment Subsidy
Tax Concession
Low Overheads
Distribution Management
Indigenous Machinery
Cost Control
Result of Nirmas Success: o HLL launched low cost Wheel in 1987. Wheel Blue Wheel Green Emergence of copycats: o Look-alikes o Growth of several mfg. & ancillary units. Like Hippolin, OK, etc. o Adopt low cost structure o Gujarat become detergent capital 60% production in Gujarat. Nirma have a Five listed Companies: o NDL (Nirma Detergent Ltd.) o NSDL (Nirme Soaps and Detergent Ltd.) o SSDL (Shiva Shops and Detergent Ltd.) o NCL (Nilima Chemicals Ltd.) o Nirma Limited. Internal Structure: o Nirma is an entrepreneurial firm so all major operations are handled by Mr. Patel. o There is very simple structure, 10,000 employees > 250 managers > Mr. Patel
Shampoo
Detergent
Nirma Nirma Super
Toothpast
Nirmas diversification: o Rs. 1040 crore Soda Ash Plant o Rs. 400 crore Linear Alkyl Benzene mfg. Facility These two chemicals account for three-forth cost of manufactured detergent. Nirmas Overseas Operation: o Bangladesh o China o Russia o Sri Lanka Some Emergent Issues for Nirma: o Image Problem: Value for money, Cheaper o Competitive advertising from MNCs o Rising income levels of Middle class o Rising cost o Increase in cost of main raw materials.