8ACkC8Cunu

1he counLry now wlLh sound economlc growLh enLered a vlrLuous clrcle of long Lerm economlc growLh
and sLrong
fundamenLals 1he lndlan economy has soared aL an average growLh of over seven percenLage every
year ln Lhe
lasL decade and aL around nlne percenLage ln Lhe lasL Lhree yea8s1he lnvesLor confldence ln Lhe caplLal
markeLs
also revlved slgnlflcanLly wlLh 8SL sensex [umped Lo a new helghL


CCMAn?'S 8CuuC1S
Maln producL llnes of Lhe Company are ueLergenLs Soap and Ldlble SalL As parL of lLs backward
lnLegraLlon
sLraLegy Lhe Company ln sLages seL up faclllLles Lo manufacLure key raw maLerlals requlred
Accordlngly Lhe
Company seL up planLs Lo manufacLure (1973) Llnear Alkyl 8enzene SulphonaLe (1989) Sulphurlc Acld
Alfa Clefln
SuphonaLe (1990) Clycerlne laLLy Acld (1994) rlnLlng and acklng faclllLles (1997) Llnear Alkyl
8enzene
naraffln and (2000) Soda Ash lndusLrlal SalL supporLed by capLlve power planL ConsequenL upon
Lhe merger
of uemerged Sachana underLaklng of Core PealLhcare LLd ln 2007 Lhe Company's producL now also
lnclude lv
lluld ln[ecLables medlcal devlses and lv seLs 1he Company's maln manufacLurlng locaLlons are aL
Mandall
ulsLrlcL Mehsana Moralya ulsLrlcL Ahmedabad Allndra ulsLrlcL vadodara kalaLalav ulsLrlcL 8havnagar
and
Sachana ulsLrlcL Ahmedabad


SALLS Anu CL8A1lCnAL L8lC8MAnCL
uurlng Lhe flnanclal year 200607 Lhe ueLergenL Soaps Soda Ash and LA8 conLlnued Lo be a leadlng
producLs
for Lhe Company uurlng Lhe year under revlew ueLergenL and Soap aL 8s1640 crores accounLed for
6439 of
Lhe gross sales Soda Ash and Llnear Alkyl benzene aL 8s67344 crores accounLed for 2632 of Lhe
gross sales
1he proporLlonaLe shares of ueLergenL Soda Ash and LA8 ln Lhe LoLal gross sales were more or less Lhe
same
as compared Lo Lhe prevlous year uue Lo Lhe lower demand of Lhe end producL and general slugglsh
Lrends ln
Lhe markeL Lhe producLlon of Lhe producLs porLfollo was aversely affecLed durlng Lhe year 1he effecL of
change
ln Lhe paLLern of markeLlng and dlsLrlbuLlon whlch was done Lhrough Company's wholly owned
subsldlary nlrma
Consumer Care LLd prlor Lo Aprll 2006 and now belng handled dlrecLly by Lhe Company are reflecLed ln
Lhe resulLs
of Lhe Company ConsequenLly Lhe reallsaLlon on sales could be lncreased buL slmulLaneously markeLlng
and
dlsLrlbuLlon expenses whlch was earller borne by nlrma Consumer Care LLd was accounLed by Lhe
Company
durlng Lhe year under revlew
1he Company conLlnues Lo render lLs cusLomers Lhe besL quallLy aL a falr and compaLlble prlce 1he
Company wlLh
lLs experlenced and well lnformed dlsLrlbuLors across Lhe counLry looks afLer Lhe need of mllllons of
cusLomers





llnAnClAL PlCPLlCP1S
1he ComposlLe Scheme of Compromlse and ArrangemenL wlLh Core PealLhcare LlmlLed (CPL) lLs
Lenders
and Shareholders provlded Sachana underLaklng of CPL merged wlLh all lLs asseLs and speclfled
llablllLles
1he neL sale of 8s3379 crores of Sachana underLaklng has been lncluded ln Lhe neL sales of Lhe
Company
durlng Lhe year under revlew 1he neL loss of 8s3984 crores was charged Lo Lhe proflL and loss accounL
of
Lhe Company whlle loss amounLlng Lo 8s11138 crores perLalnlng Lo Sachana underLaklng was broughL
forward
1he Company ls confldenL of consolldaLlng lLs operaLlons aL Sachana underLaklng and alms Lo be ma[or
player
ln Lhe comlng years
1he Company reglsLered gross sales of 8s233929 crores for Lhe year ended 31sL March 2007 as agalnsL
8s224411 crores of Lhe prevlous year reglsLerlng a growLh of 1313
1oLal operaLlng expenses lncludlng lnLeresL durlng Lhe year was 8s194180 crores agalnsL 8s144936
crores for
Lhe prevlous year As percenLage of gross sales lL was 7647 as agalnsL 6439 for Lhe prevlous year
As already
sLaLed due Lo Lhe change ln Lhe paLLern of markeLlng and dlsLrlbuLlon of Soaps and ueLergenL Lhe
expenses
perLalnlng Lo markeLlng and dlsLrlbuLlon had been accounLed Lhe Company dlrecLly ConsequenLly cosL
of frelghL
and LransporLaLlon expenses sales Lax expenses dlscounL on sales eLc durlng Lhe year are noL
comparable wlLh
LhaL of prevlous year MaLerlal consumpLlon aL 8s109169 crores durlng Lhe year lncreased Lo 4864 of
neL Sales
from 4723 ln Lhe prevlous year roflL before lnLeresL uepreclaLlon and 1ax aL 8s38390 crores was
less by
2289 as compared Lo 8s30044 crores of Lhe prevlous year 1he depreclaLlon charge was aL 8s20731
crores
for Lhe year under revlew as agalnsL 8s13642 crores ln Lhe prevlous year 1he hlgher depreclaLlon was
malnly
on accounL of depreclaLlon charged on addlLlon of flxed asseLs of 8s871 crores Lakenover from
uemerged Sachana
underLaklng 1he comblned effecL of reducLlon ln Lhe sales quanLlLy margln and also accounLlng of loss
of Sachana
underLaklng durlng Lhe year resulLed ln Lhe reducLlon ln Lhe neL roflL by 8s13226 crores 1o sum up
conslderlng
Lhe Lough compeLlLlon Lhe marglns and proflLablllLy ln Lhls caLegory conLlnued Lo be a challenge durlng
Lhe year
under revlew
1o Lake advanLage from Lhe rlslng lnLeresL raLes Lhe Company repurchased 8s33730 crores of maLurlLy
value
of ueep ulscounL 8onds aL a galn of 8s999 crores ueploymenL of Lemporary surplus funds LogeLher
wlLh Lhe
cancellaLlon of ueep ulscounL 8onds resulLed ln neL lnLeresL lncome of 8s632 crores as compared Lo
lnLeresL
lncome of 8s673 crores ln Lhe prevlous year uebLors aL 8s23339 crores are marglnally hlgher Lhan
8s22132
crores 1he aggregaLe level of loan funds decreased from 8s34809 crores ln Lhe prevlous year Lo
8s32483
crores aL Lhe end of 31
sL
March 2007 1he debL Lo equlLy raLlo of Lhe Company ls 013 1he Company ls raLed
1+ raLlng by C8lSlL



ln1L8nAL CCn18CL S?S1LM
1he company has deslgned a proper and adequaLe lnLernal ConLrol SysLem Lo ensure
- roper recordlng and safeguardlng of asseLs
- MalnLenance of proper accounLlng records and rellablllLy of flnanclal lnformaLlon
- Compllance wlLh prevalenL sLaLuLes pollcles and procedures appllcable Lo Lhe Company
- 1ransacLlons are belng accuraLely recorded and cross verlfled and prompLly recorded
- Adherence Lo appllcable accounLlng sLandard
1he sysLem ls lmproved and modlfled conLlnuously by Lhe managemenL Lo meeL wlLh Lhe changes ln
buslness
condlLlon sLaLuLory and accounLlng requlremenLs 1he AudlL CommlLLee of dlrecLors acLlvely revlews
Lhe adequacy
and effecLlveness of lnLernal conLrol sysLem whlch ls an lnLegral parL of conLrol mechanlsm 1he
observaLlons are
sub[ecL Lo perlodlc revlew of Lhe commlLLee on regular basls


8lSk MAnACLMLn1
As parL of sound corporaLe governance pracLlce Lhe Company has always glven approprlaLe welghLage
Lo Lhe
managemenL of rlsk WlLh Lhe backward lnLegraLlon Lhe company has ensured conslsLency ln quallLy of
all producLs
Llmely dellvery and aL Lhe same Llme keep Lhe cosL under conLrol 1he Company ls looklng lnLo Lhe
pro[ecLs LhaL
are vlable ln naLure 1o sLand agalnsL Lhe compeLlLlon rlsk Lhe company also focuslng Lhe producL
quallLy rellablllLy
Lechnology prlce conslderaLlon malnLalnlng relaLlonshlps and scope and quallLy of servlce Company's
wldespread
globle operaLlons could lmpacL lLs operaLlonal efflclency 1here are no maLerlally slgnlflcanL exchange
raLe rlsk
assoclaLed wlLh Lhe Company 1he Company do noL deemed lL flL Lo hedge Lo cover Lhe posslble rlsk ln
Lhe
flucLuaLlon ln Lhe raLe of forelgn exchange Powever Lhe Company regularly monlLor Lhe flucLuaLlon ln
Lhe forelgn
exchange 1he Company Lakes care of lLs borrowlng 1he Company has repurchased all lLs ueep
ulscounL 8onds
durlng Lhe year under revlew so as Lo reduce Lhe cosL of borrowlng


2 8CA8u Cl ul8LC1C8S
21 ComposlLlon
l) 1he 8oard of ulrecLors conslsLs of 10 ulrecLors wlLh a nonLxecuLlve Chalrman CuL of 10 ulrecLors 8
are nonLxecuLlve ulrecLors and of whlch 6 are lndependenL ulrecLors1he composlLlon of Lhe 8oard ls
ln conformlLy wlLh Lhe Clause 49 of LlsLlng AgreemenL enLered lnLo wlLh Lhe SLock Lxchanges
ll) 1he lndependenL ulrecLors on Lhe 8oard are experlenced compeLenL and hlghly renowned person
from
Lhe respecLlve fleld 1he lndependenL ulrecLors Lake acLlve parL aL Lhe 8oard and CommlLLee MeeLlngs
whlch add value ln Lhe declslon maklng process of Lhe 8oard of ulrecLors
lll) 1he names and caLegorles of ulrecLors on Lhe 8oard Lhelr aLLendance aL 8oard MeeLlngs held durlng
Lhe
year and Lhe no of ulrecLorshlp and CommlLLee Chalrmanshlp / Membershlp held ln oLher Companles
ls glven as on 31
sL
March 2007 CLher ulrecLorshlp does noL lnclude alLernaLe dlrecLorshlp dlrecLorshlp
of prlvaLe llmlLed companles secLlon 23 companles and oLher companles lncorporaLed ouLslde lndla
ALLendance arLlculars no of ulrecLorshlp and CommlLLee Membershlp/
Chalrmanshlp ln oLher ubllc LlmlLed Companles

Date of EstabIishment 1980
Revenue 785.84 ( USD in Millions )
Market Cap 40684.7243933 ( Rs. in Millions )
Corporate Address Nirma House,Ashram Road,Ahmedabad-
380009, Gujarat
www.nirma.co.in
Management DetaiIs Chairperson - K K Patel
MD - Hiren K Patel
Directors - A P Sarwan, Chinubhai R
Shah, Hiren K Patel, K K Patel, Kalpesh
A Patel, Kaushikbhai N Patel, Pankaj R
Patel, Paresh Sheth, Rajendra D Shah,
Rakesh K Patel, Shrenikbhai K Lalbhai,
Shrenikkbhai K Lalbhai
Business Operation Household & Personal Products
Background Nirma, having a turnover of Rs2500
crore, started its journey as one-man
operation by Dr Karsanbhai Patel. He
was a science graduate and worked as
junior chemist in a government
laboratory. He
manufactureddetergent at the backyard
of his house, later selling them door to
door. Soon it got well placed in the
consumer community and the company
was incorporated in 1980.
Today
FinanciaIs TotaI Income - Rs. 32820 Million ( year
ending Mar 2011)
Net Profit - Rs. 740.4 Million ( year
ending Mar 2011)
Company Secretary Paresh Sheth
Bankers Mehsana Urban Co-Op Bank
Auditors


history

Nirma, having a turnover of Rs2500 crore, started its journey as one-man
operation by Dr Karsanbhai Patel. He was a science graduate and worked as
junior chemist in a government laboratory. He manufactured detergent at the
backyard of his house, later selling them door to door. Soon it got well placed in
the consumer community and the company was incorporated in 1980.
Today, Nirma is one of the largest and most integrated manufacturer of detergents
and toiletries in the world. t has a marketing and distribution network of 400
distributors and over a million retailers, reaching out to 300 million customers.
Product PortfoIio
Detergents t manufactures a wide range of detergents such as spray-dried
powder, compact dry mixed powder, cakes and scouring products like Nirma
Bartan and Nirma Clean.
ToiIet soaps t manufactures soaps such as beauty soaps, carbolic soaps and
premium soaps. t has Brands like Nima Rose, Nima Sandal and Nirma Lime
Fresh.
Packaged food Nirma has also entered the packaged food segment through its
Nirma Shudh iodized salt.
IndustriaI products Nirma has also entered into manufacturing of industrial
Hemanshu Shah & Co





products such as LAB (linear alkyl benzene), glycerin, AOS (alfa olefin sulfonate),
sulfuric acid, sodium silicate, soda ash and salt.
Fertizers t also manufactures single super phosphate.
MiIestones
t is teh largest player in detergent market in ndia with market share of 38% .
t is second largest toilet soap marketer with market share of 20% in the country .
Nirma Shudh salt is second largest salt brand in some parts of the ndia.
Awards
Nirma was awarded Excellence award for Best Advertisement of the year at FMCG
awards 2003.
t won Most Popular Brand in detergent powdereconomy category at FMCG
awards 2003.
t is 9th largest FMCG brand of the country according to AC Neilsen Retail Audit-
Brand Equity in 2004.
OutIook
Nirma is set to enter the cement manufacturing segment. t is planning to set up to
set up a cement facility with a capacity of 1.91 million tonnes per annum at Tal.
Mahuva in Bhavnagar district, Gujarat. t has also acquired land for a captive
power plant to generate 50MW of electricity. The government of Gujarat has
sanctioned the supply of sweet water from Narmada pipeline for the cement
project.

Company
SaIes
(Rs.MiIIion)
Current
Price
Change
(%)
P/E
Ratio
Market
Cap.(Rs.MiIIion)
52-Week
High/Low

Hindustan
Unilever
194011.10 349.45 1.93 31.47 755147.37 354/265

Dabur ndia
32643.70 100.15 2.51 36.89 174466.04 122/87

Godrej
Consumer
Prod
23951.63 432.40 1.42 27.70 139920.38 464/325

Colgate
Palmol. ()
22205.58 998.75 -0.20 35.65 135822.83 1057/783

Marico
23468.70 153.50 -0.52 28.65 94379.44 173/112

Gillette ndia
10568.60 2091.90 0.63 79.12 68165.02 2315/1487

P&G
Hygiene
9044.59 1999.00 3.12 43.01 64889.01 2125/1460

Godrej
ndustries
10588.30 202.20 2.22 46.72 64223.75 238/155

Emami
12023.80 409.30 0.38 49.39 61931.90 545/313

Nirma
32466.50 255.65 0.06 52.07 40684.72 259/214

Bajaj Corp
3586.73 100.00 0.76 14.26 14750.00 132/73

Jyothy
Laboratories
6455.14 141.00 1.81 16.58 11369.11 293/131

Reckitt
Benckiser
17901.19 246.25 0.00 2.78 8104.87 0/0

Henkel ndia
4501.72 29.75 -0.67 10.28 3464.51 68/26

Fem Care
Pharma
1074.71 980.05 -1.40 18.50 3458.99 1010/980

Rayban
585.42 136.35 0.00 16.15 3336.88 137/135

Amar
Remedies
4724.04 119.60 -0.83 8.22 3129.23 171/80

JHS
Svendgaard
510.02 31.25 -0.95 18.12 532.81 128/27

JL Morison
ndia
1009.54 347.75 -3.40 0.00 474.69 377/255

MFL ndia
1.15 11.97 9.92 138.39 178.52 17/8

Pee Cee
Cosma
Sope
288.96 62.65 3.73 0.00 165.79 115/48

GKB
Ophthalmics
375.46 38.00 0.00 18.48 157.84 65/33

Paramount
Cosmetics
289.15 24.85 -4.97 6.49 120.65 43/13

Muller &
Phipps ()
139.67 70.00 4.48 6.06 43.75 103/62

Ador
Multiprod
106.81 16.75 -4.29 84.42 42.21 45/16

Synergy
Cosmetics
0.14 1.77 4.12 0.00 20.08 2/1

'elvette ntl.
Phar
9.21 3.10 0.00 0.00 15.29 0/0

deal Optics
0.72 2.67 4.71 23.32 12.13 3/3