The Magic Behind NIRMA Washing Power Success Story # 2

Mr. K.K Patel, born in a small Indian village, obtained B.Sc, degree in Chemistry. For six years he worked as lab technician. During his free time after office hours, he experimented at making detergent powder and succeeded in 1969. The powder was handmade. The marketing was door-to-door on Sundays in the neighborhood.

The target market was price-conscious middle and lower middle class housewives. He shows great potential for this market for cheap washing powder. "Surf" and "Det" were catering to rich customers.

Mr. Patel registered "Nirma Chemical Works". The investment in capital was Rs. 1000 borrowed from friends and relatives. The brand was name "NIRMA". Nirma was his daughter. Over the next three years, he became a popular figure in the neighborhood. He gave personal attention to his customers. The demand for this product increased.

Some Facts of Nirma

• "Nirma" is the name after Nirupama (Nima) daughter of Dr. Karsanbhai Patel
• "Dudh si safedi nirma se aye rangin kapada bhi khil khil jaya" jingle used for last 35 years.
• Same radio spot has been used consistenly for last 28 years.
• Nirma is one of the largest selling single detergent brand in the world. 

Mr. Patel gave up his job in 1972. He shifted the production facilities to a small 36 sq.ft. Industrial shed. He used plastic bags for packaging. The market expanded. Radio advertising was done. Nirma was visible on the national scene within five years. It captured 60 percent market share of washing powder.

"Affordable price" is the key to the success of Nirma. It was available at one-third of the price of Surf. Mr. Patel has pursued the strategy of holding the price line by cutting costs. The target profit was 7% of sales. Price was based on willingness of people to pay.

Mr. Patel has 8000 employees. The management team consists of 60 managers. for marketing, there are 400 dealers and 4,00,00 retail outlets. His philosophy is "Have a good quality product at affordable price, establish it in the market, and then go for promotion."

The products have been diversified. Nirma detergent cake was launched in 1986. It was a great success. In 1987, Nirma toilet soap was launched. Nirma toothpaste in the pipeline. Factories have been established at various locations. The daily sales have gone up to 1200 metric tons of powder and 700 metric tons of detergent cakes. The yearly growth rate has been 50%. It has plans for half a dozen projects worth Rs 500 crores to supply raw materials. 

Mr Patel remarks " If I work hard and have perseverance, I will automatically rise". His is a story of "rage to riches". Today, Nirma is effectively competing with brand of multinational giants like "Surf" of Hindustan Lever and "Aerial" of proctor and Gamble. Mr. Patel is a living legend in India.

Reference : 

• http://en.wikipedia.org/wiki/Karsanbhai_Patel
• http://en.wikipedia.org/wiki/Nirma
• http://www.slideshare.net/rajkonwarutpal/nirma-17259228