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Nirma Case Study Summary

Karsanbhai Patel founded Nirma washing powder in 1969 with a goal of providing affordable cleaning products for middle and lower-class families. He undercut competitors by selling his powder for one-third the price of popular brands. This highly boosted sales and confirmed demand for inexpensive washing powder. Nirma grew tremendously over the decades and now holds a 35% market share in washing powder and 20% in beauty soaps, with annual revenue of 3,000 crores and over 15,000 employees. Karsanbhai's dedication to providing better products at better value drove Nirma's success.

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Vanshika Srivastava 17IFT017
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187 views2 pages

Nirma Case Study Summary

Karsanbhai Patel founded Nirma washing powder in 1969 with a goal of providing affordable cleaning products for middle and lower-class families. He undercut competitors by selling his powder for one-third the price of popular brands. This highly boosted sales and confirmed demand for inexpensive washing powder. Nirma grew tremendously over the decades and now holds a 35% market share in washing powder and 20% in beauty soaps, with annual revenue of 3,000 crores and over 15,000 employees. Karsanbhai's dedication to providing better products at better value drove Nirma's success.

Uploaded by

Vanshika Srivastava 17IFT017
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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The story of Nirma

Going through the journey of Karsanbhai Patel who is the founder of Nirma washing powder,
one can truly say that an idea can do wonders if the person is dedicated enough.

With a BSc degree in hand and a government job that people looked for in the year 1969 and
beyond, Karsanbhai dared to first start Nirma as a side hustle which was a need to support his
family at that time. And later on, he took it ahead as a business.

At the time when there was no knowledge of entrepreneurship and the strategies of an FMCG
sector, Karsanbhai did something that not a lot of people thought about. At the time when he
started selling his powder, he only sold 15 to 20 packets a day. After the response he received
from all his customers, he quit his secure life to take a journey full of risk.

This is what proved to be successful. His biggest competitor at that time was Surf. He found
an edge over the famous company by selling his Nirma powder at only rupees 3 per kg which
did the same job, if not better than Surf which was sold at rupees 13 per kg.

This highly boosted the sales of his washing powder and confirmed the fact that washing
powders are not only meant for the wealthy but also for middle and lower-class families.

The biggest motivating factor of Nirma's increase in sales is its housewife friendly
advertisement jingle. Even today when one thinks of Nirma they immediately think of the
song that used to play and is still played today in an advertisement.

Started in 1969, Nirma has come a long way as a washing powder business. In 2004, Nirmal
annual sales touched 8,00,000. This made it one of the largest volume sales by a single brand
in the whole world. Nirma now holds around 35% of the market share in terms of washing
powder.

The next thing that Nirma jumped into was the sales of beauty soaps in the year 1980. Even
though the brand was late in this particular sector, their name and quality made them very
famous for the soaps as well and now they own around 20% market of beauty soaps.

The company's core mission is to provide 'Better Products, Better Value, Better Living.' This
mission, which has turned into the motto of the company, as what has kept them ahead of a
lot of other brands.
With so many strategies known to us in today's times, Nirma has also adopted many
operational strategies like cost containment, backward integration, economies of scale, lean
distribution networking etc.

Now, there are over 15,000 employees that work for Nirma and together they on around
3,000 crores as annual revenue.

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