Karshanbhai Patel from Nirma

Dr. Karsanbhai Patel has 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 Ahmedabad and then carry out door to door selling of his hand made product. He gave a money back guarantee with every pack that was sold. Karsanbhai Patel managed to offer his detergent powder for Rs. 3 per kg when the cheapest detergent at that time was Rs.13 per kg and so he was able to successfully target the middle and lower middle income segment.

 Nirma…...Nirma…..Nirma….

Sabki  pasand Nirma…...

Washing Powder Nirma......NIRMA.

This Advertisement has record breaking life in advertising industry. It was run for 18 years, with same music and same advertise, which tells NIRMA’s impact to the world. Here the brand name “NIRMA” was came out from the name of Karshanbhai’s Daughter “Nima”.

Karsanbhai Patel had good knowledge of chemicals and he came up with Nirma detergent which was a result of innovative combination of the important ingredients. Indigenous method was used, and also the detergent was more environments friendly.

The process of detergent production was labor intensive and this gave employment to a large number of people. Nirma focused on cost reduction strategies to make a place for itself in the market. Nirma has always been known for offering quality products at affordable prices and thus creating good value for the consumer’s money.

In the 1980s Nirma moved ahead of Surf, a detergent by HLL, to capture a large market share. Later, Nirma successfully entered in the premium segment of soaps and detergents. Nirma went on to become the largest detergent and the second largest soap company in India. Nirma had more than 35% market share in the detergent segment and around 20 % market share in the toilet soap segment. The company got listed on the stock exchanges in the year 1994. 

Nirma adopted backward integration strategy for the regular supply of raw materials,90 % of which they manufacture themselves. Nirma also gave due importance to modernization, expansion and up gradation of the production facilities. The company also made sure that it uses the latest technology and infrastructure.

The company that was started in 1969 with just one man who used to deliver his product from one house to the other, today employs around 14 thousand people and has a turnover of more than $ 500 million. In 2004 Nirma’s annual sales were as high as 800000 tones. According to Forbes in 2005 Karsanbhai Patel’s net worth was $ 640 million.

Karshanbhai Patel is a great Gujarati Businessman, we can say Business Tycoon with name and fame across the length & breadth of the world.

RAJESH RADADIYA

MBA – International Business & Marketing,

B.E.Computer.

Contact me on " radadiya_rajesh@yahoo.com "