Karsanbhai Patel

Entrepreneurship Development- assignment 2013 Entrepreneur Profile-Mr. Karsanbhai Patel NIRMA- From Rags to Riches -Gitika Kolli(1225112321) -MBA-C-GIM Gitam institute of management(2012-2014) Introduction: Nirma is one of the few names – which is instantly recognized as a true Indian brand, which took on mighty multinationals and rewrote the marketing rules to win the heart of princess, i. e. the consumer. Nirma, the proverbial ‘Rags to Riches’ saga of Dr. Karsanbhai Patel, is a classic example of the success of Indian entrepreneurship in the face of stiff competition.

Starting as a one-man operation in 1969, today, it has about 14, 000 employee-base and annual turnover is above Rs. 25, 00 crores. Way back- Nirma and its existence: India is a one of the largest consumer economy, with burgeoning middle class pie. In such a widespread, diverse marketplace, Nirma aptly concentrated all its efforts towards creating and building a strong consumer preference towards its ‘value-for-money’ products. Innovation, Creation and Foundation: It was way back in ‘60s and ‘70s, where the domestic detergent market had only premium segment, with very few players and was dominated by MNCs.

It was 1969, when Karsanbhai Patel started door-to-door selling of his detergent powder, priced at an astonishing Rs. 3 per kg, when the available cheapest brand in the market was Rs. 13 per kg. It was really an innovative, quality product – with indigenous process, packaging and low-profiled marketing, which changed the habit of Indian housewives’ for washing their clothes. In a short p, Nirma created an entirely new market segment in domestic marketplace, which is, eventually the largest consumer pocket and quickly emerged as dominating market player – a position it has never since relinquished.

Rewriting the marketing rules, Nirma became a one of the widely discussed success stories between the four-walls of the B-school classroom across the world. Marketing Miracle: The performance of Nirma during the decade of 1980s has been labelled as ‘Marketing Miracle’ of an era. During this period, the brand surged well ahead its nearest rival – Surf, which was well-established detergent product by Hindustan Lever. It was a severing battering for MNC as it recorded a sharp drop in its market share. Nirma literally captured the market share by offering value-based marketing mix of four P’s, i. e. perfect match of product, price, place and promotion. The year 2004 sees Nirma’s annual sales touch 800,000 tones, making it one of the largest volume sales with a single brand name in the world. Looking at the FMCG synergies, Nirma stepped into toilet soaps relatively late in 1990 but this did not deter it to achieve a volume of 100,000 per annum. This makes Nirma the largest detergent and the second largest toilet soap brand in India with market share of 38% and 20% respectively. Strategies: It has been persistent effort of Nirma to make consumer products available to masses at an affordable price.

Hence, it takes utmost care to provide finest products at the most affordable prices. To leverage this effort, Nirma has gone for massive backward integration along with expansion and modernization of the manufacturing facilities. The focal objective behind modernisation plan is of up gradation with resource-savvy technology to optimise capabilities. Nirma’s six production facilities, located at different places, are well equipped with state-of-art technologies. To ensure regular supply of major raw materials, Nirma had opted for backward integration strategies.

These strategic moves allowed Nirma to manage effective and efficient supply-chain. Nirma has always been practiced ‘value-for-money’ plank. Nirma plans to extend the same philosophy in categories as commodity food products, personal care products and packaged food. Distinct market vision and robust infrastructure allowed Nirma to have cost leadership. Apart from this, lean distribution network, umbrella branding and low profile media promotions allowed it to offer quality products, at affordable prices. Organisation Structure: In present scenario, an inspiring 59-year-old persona, Dr.

Karsanbhai K. Patel, leads Nirma, playing role of key strategic decision-maker, whereas his next generation has already skilled management capabilities. Shri Rakesh K Patel – a qualified management graduate, is spearheading the procurement, production and logistic functions, whereas Shri Hiren K Patel – a qualified Chemical engineer and management graduate, heads the marketing and finance functions of the organisation. Shri Kalpesh Patel, Executive Director, leads the professional organisational structure. Awards and Accolades: The man behind the success of Nirma phenomenon – Dr.

Karsanbhai Patel is a recipient of various awards and accolades. He has been bestowed with various awards like… * Udyog Ratna by Federation of Association of Small-Scale Industries of Gujarat, New Delhi. * Outstanding Industrialist of Eighties by Gujarat Chamber of Commerce and Industry, Ahmedabad (in 1990). * Gujarat Businessman Award in 1998 by Gujarat Chamber of Commerce and Industry, Ahmedabad. * Excellence in Corporate Governance Award by Rotary International District 2000. * A&M Hall of Fame, _______.

Shri Karsanbhai has been awarded an Honorary Doctorate by Florida Atlantic University, Florida, USA in the year 2001 in recognition of his exceptional accomplishments as a philanthropist and businessman. This world has also recognised his ability, acumen and wisdom and in recognition of the services rendered by him in his various capacities. Dr. Karsanbhai Patel has also served as a Chairman for two terms to the Government of India’s Development Council for soaps and detergents, as a Member of Bureau of Indian Standards Committee for Soaps and Detergent Industries and President of Gujarat Detergent Manufacturers Association.

Conclusion: Karsanbhai Patel stands to be a source of inspiration and provides insights in setting up an industry with the spirit of self-confidence and fulfilling the criterion of a budding entrepreneur in evolving his conceptual knowledge into a practical approach by using creativity and innovation, which has accolades of praises in due for him. REFERENCES: http://www. nirma. co. in/genesis. htm http://www. slideshare. net http://www. iloveindia. com/indian-heroes/karsanbhai-patel. html http://toostep. com/insight/success-story-of-nirma http://en. wikipedia. org/wiki/Karsanbhai_Patel