Nirma’s Success Story
Once a sole proprietary business of an unpackaged washing powder became a major Indian company is because of Karsanbhai Patel, to whom Nirma’s success can be attributed. As it rightly said that entrepreneurship is not earmarked for a particular person, passion to change the life of others with your passion to make your dreams come true can make you an entrepreneur. Karsanbhai Patel is the biggest example of success in the corporate world and his perseverance and grit is the secret to his success.
Kansanbhai Patel: India’s Leading Businessman
He was born in the family of a farmer in 1945, Mehsana, Gujarat is the founder of Nirma Group which gives employment to 18000+ people and has the net worth of Rs 2500 crore. After the death of his beloved daughter Nirupama, Karsanbhai Patel stated manufacturing detergent brand Nirma which he himself made in the backyard of his house. He used his knowledge of chemicals learnt while doing Bsc in Chemistry to manufacture a yellow colour detergent powder. During those days Karsanbhai used to work at the Geology and Mining Department of the State Government. He used to go to office by cycle and sold his powder from door to door while going to and returning back from the office. In this way, he sold his product for three years and that is how he managed to establish his consumer base and improve the quality of his product. He sold his Nirma washing powder at INR 3.5 per kg and gave a tough competition to Hindustan Unilever’s Surf washing powder. Providing high-quality product at a low price has been the motto of the Nirma Group. Karsanbhai used to sell 15-20 packets per day while going to the office and while returning back which was approximately 15 km away. In no time his product got popular and its demand increased in Ruppur(Gujarat). In 1972 when was confident about his ventures growth in future, he decided to quit his job.After this he established a small workshop in the periphery of Ahmedabad in a residential area. In 1985, Nirma’s became a prominent washing powder brand in the market.In 1990, Nirma launched its second product “ Nirma Super Detergent” which was a dried blue colour detergent powder. Next, in an attempt to diversify its range of product Nirma launched its Nirma Beauty Soap. In 1994, Nirma got itself listed on Stock Exchange as well. By 1990 Nirma’s grew in leaps and bounds, it was not only limited to manufacturing detergents but was also into manufacturing soaps and cosmetics. Nirma’s products were also considered as environment-friendly as they were phosphate free and this quality of Nirma gave it a competitive edge over its competitors.
Nirma’s Promotion Strategy
It was not at all easy for an Indian washing powder brand like Nirma to survive in India’s competitive market as it had to face tough competition from big multinational in India. The post-Industrial policy of 1991 hampered the growth of domestic businesses. So is the case with Karsanbhai Patel, in Gujarat and Maharashtra his business was doing well but in other places retailers used to buy they’re their stock on credit and never gave their full payment on time. So, Karsanbhai ordered his team to stop the supply of his product and he diverted his funds from giving credit to start his advertisement campaign on TV. The famous jingle of Nirma “HEMA, REKHA, JAYA AUR SUSHMA SABKI PASAND NIRMA” is something well heard by every person in 90s. The extensive promotion of Nirma on TV for 1 month created the demand for the product but the retailers were not having the supply of this product. Thus, people started demanding Nirma but the supply was restricted. So, again Karsanbhai changed his sales strategy and ordered his sales team to restart the sale of his product and not to sell it to retailers on credit. This change in the strategy of the sales strategy of the product through cash on the delivery way and the increased demand for their products due to advertisements on TV is attributed to Nirma’s success.