Back in 1969, what did it need to take on the might of Hindustan Lever (today’s HUL)? Karsanbhai Khodidas Patel, the son of a farmer, was a junior chemist in a Government Laboratory. A 100-square-feet backyard, a bucket, some chemicals and an enterprising mind were all that he had when he attempted the near-impossible. He mixed the ingredients by hand to create a new, phosphate-free, environment-friendly detergent powder. He named it ‘Nirma’ after his daughter ‘Nirupama’ and marketed it door-to-door on his bicycle.
At ₹3 a kilo, it was just one-third the price of the ruling detergents of the day. Housewives did not mind taking a chance at this rate; the money-back guarantee was also tempting. As the product proved its quality, news spread by word-of-mouth and sales soared. The one-man operation grew fast. After three years, Karsanbhai quit his job and concentrated full-time on Nirma. He set up operations in a small workshop in an Ahmedabad suburb.
Within 10 years, Nirma was topping the detergents market. A catchy advertisement jingle lured housewives, the quality offered retained them as customers and ‘Nirma’ was soon a household name. Till 1986, it remained a single-product brand, after which Nirma detergent cake was introduced and was an instant success.
Largest volumes
Today, the Nirma group of companies based in Ahmedabad has a turnover of more than ₹7,000 crore and employs more than 18,000 people. It has expanded its range of products, adding toilet and beauty soaps, detergent bars, toothpaste, scouring bars to clean utensils, and even salt, to its portfolio. When first introduced, Nirma’s beauty soap was the third largest selling toilet soap brand in India, while the Nirma lime fresh soap created marketing history by selling 17 million packs in the first month of its launch! It should also be noted that in 2004, one of the largest volumes sold in the world under a single brand name – about 800,000 tonnes – was achieved by Nirma detergent.
Nirma Shudh Salt, launched in 2002, is said to be free from human touch and is only the second vacuum salt in the country. It is manufactured using the world-class Akzo-Nobel technology. Nirma also entered the health care category with Nirlife, manufacturing intravenous fluids and life saving drugs.
As the scale of operations increased, to continue to provide low-cost but high-quality products, Nirma went for a backward integration strategy: it established its own Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin Sulphonates (AOS), Fatty Acid, Glycerine and Sulphuric Acid manufacturing facilities. It is one of India’s largest – and among the Top 7 – soda ash manufacturers in the world. In fact, 90 per cent of the raw materials needed by Nirma for its products are manufactured in-house.
Strategic change
Nirma’s entry signalled a strategic change in the Indian market: with its focus on making products such as detergents easily and inexpensively available, even to the low-income sector, there was a sudden interest in the hitherto ignored rural market. Nirma may be the reason why detergent and soap brands have such a presence in the rural market today.
Just what made Nirma washing powder click initially? Was it the cheap price? Was it the environment-friendly approach? Was it the stress on providing quality? Many believe that apart from these, the colourful advertisement combined with the lilting jingle played a role in vaulting the product to its position today. It was first aired on radio in 1975 (it continued without a break for 33 years) and was broadcast on TV in 1982. The little girl in her bright white frock twirled her way into the consumers’ subconscious minds and remained etched there.
Awards and recognition
Many awards, including the ‘Udyog Ratna’ and the ‘Padma Shri’, recognised Karsanbhai Patel’s entrepreneurial spirit and drive. He has also generously contributed to society — the Nirma University, Nirma Vidyavihar, Nirma Memorial Trust and Nirma Foundation and the Chanasma Ruppur Gram Vikas Trust are some examples. The Institute of Technology, Nirma University, was ranked No. 19 among India’s best Engineering Colleges in 2015.
The founder’s unwavering focus on quality, cost and value (the company’s mission is to provide better products at better value for better living ) has propelled the brand to its position today as one of the largest selling detergent brands in the world, with more than two million retail outlets stocking its products and about 400 million consumers. It has been the subject of study by business schools – there has even been a Harvard Business Review case study on its success story.
Today, sabki pasand Nirma remains exactly that — everyone’s choice.