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Karsanbhai Khod
Karsanbhai Khod
founder of the Rs. 2500 crore (USD 500 mn) Nirma group with major interests in detergents,
soaps and cosmetics. In 2005 Forbes listed his net worth as USD $640 million. He has interests
in education, and founded a leading pharmacy college (Nirma Institute of Pharmacy), leading
engineering college, (Nirma Institute of Technology). He is sometimes referred to as K. K. Patel.
Karsanbhai Khodidas Patel (K.K.Patel) is a befitting example of a self made man.Coming from a
humble farmer family he understood the need of the masses to servea segment that was
neglected but at the same time highly profitable. He established a position for his firm in the
lower income segment of the detergent market,overtaking many heavy weights and
multinationals, to emerge as a winner.Literally, he made money by washing other
s’ dirty linens. He is the founder of the powerful brand ‘Nirma’ which he aptly positioned using
all the 4 P’s of marketing
It was in 1969 that Dr. Karsanbhai Patel started Nirma 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.
Life
Born into a farmer family from north Gujarat, Karsanbhai finished his B.Sc. in Chemistry at age
21 and worked as a lab technician, first in the New Cotton Mills, Ahmedabad, of the Lalbhai
group and then at the Geology and Mining Department of the state Government. In 1969,
Karsanbhai started selling detergent powder, manufactured and packaged in his backyard. This
was an after-office business - the one-man company would bicycle through the neighbourhoods
selling handmade detergent packets door to door. At a price of Rs. 3 per kg, (one third the price
of leading detergents), it was an instant success. Karsanbhai branded his detergent soap, Nirma,
after the name of his daughter. [1] After three years, Karsanbhai felt confident enough to quit
his job. Later he said, "The lack of any such precedent in my family made the venture fought
with fear of failure. But farmers from North Gujarat are known for their spirit of enterprise."
Karsanbhai set up shop at small workshop in an Ahmedabad suburb. The Nirma brand quickly
established itself in Gujarat and Maharashtra.
In 1995, Karsanbhai started the Nirma Institute of Technology in Ahmedabad, which grew into a
leading engineering college in Gujarat. An Institute of Management followed, with the entire
structure being consolidated under the Nirma University of Science and Technology in 2003,
overseen by the Nirma Education and Research Foundation. The Nirmalabs education project,
aimed at training and incubating entrepreneurs, was launched in 2004.
Karsanbhai's two sons and son-in-law are now at leading positions in the Nirma organization:[2]
Rakesh K Patel (MBA) looks after procurement and logistics, Hiren K Patel, chemical engineer
and MBA, heads marketing and finance, while Kalpesh Patel is in human resources and Healthcare
Industry (Nirlife healthcare).
The chain of events that made Nirma what it is, was as follows: –
Nirma entered the premium segment and launched toilet soaps —
Nirma bath and Nirma beauty soap, along with premium detergent Super
Nirma detergent. And today holds a 20% market share in soap cakes and
about 35% in detergents, overall.
In 1995, Karsan bhai started the Nirma Institute of Technology in
Ahmedabad, which grew into a leading engineering college in Gujarat. And
under the Nirma Education and Research Foundation launched several
projects:
Institute of Technology (1995),
In 2004;
Nirma’s detergent did a business of 800,000 tonnes – which was one of
the largest volumes sold in the world under a single brand.
Also, since their production was massively dependent on labour, the
company also became one of the leading employers of the country who were
employing 14,000 employees.
And today, although Karsan bhai continues to hold the position of the
Chairman, he leads the life of Retirement and has handed over the operation
control to his younger son Hiren who acts as the Managing Director, whereas
the elder brother Rakesh is the Vice-Chairman.
Today, under their collective leadership – Nirma has grown on to have 26
different major manufacturing plants pan India such as:
Soda Ash,
Linear Alkyl Benzene (LAB),
Packaging,
Soaps,
Detergents,
Salt, etc.
Apart from that; Alpha Olefin Sulfonate, Sulfuric Acid, Glycerin, Single Super
Phosphate, Infusions, Injectables, Critical Care Products, Medical Disposables,
Salt, Cement, Single Super Phosphate, Castor Oil, Multilayer Tubes, Seamless
Tubes, Tube Laminate, Labels, Flexible, Laminate, Paper & Plastic Cups,
Tarpaulin, and Injection Moulding, individually produce various products.
In 2001, Karsanbhai was awarded an honorary doctorate by Florida Atlantic University, recognizing his
exceptional entrepreneurial and philanthropic accomplishments.
In 1990, the Federation of Association of Small Scale Industries of India (FASII), New Delhi, awarded him
the 'Udyog Ratna' award. The Gujarat Chamber of Commerce felicitated him as an 'Outstanding
Industrialist of the Eighties'. He has served twice as Chairman of the Development Council for Oils, Soaps
and Detergents.
Patel has been conferred with Padma Shri Award for the year 2010.[4] The award was formally conferred
by the President of India Mrs Pratibha Patil.
It was also announced on June 7, 2013 that he bought 40 crores six-seater chopper. After Adani Group
chairman Gautam Adani and Zydus group promoter Pankaj Patel, Karshanbhai is the third Ahmadabad-
based industrialist to buy a chopper.