Dr. KarsanbhaiKhodidas PatelRags to Riches

Early LifeKarsanbhai Khodidas Patel was born in 1944 in Northern Gujurat to a farmer familyHe finished his B.Sc. in Chemistry at age 21Thereafter, he joined New Cotton Mills in Ahmedabad as a lab technicianHe later joined the Geology and Mining Department of the State of Gujurat

Beginnings of NirmaIn 1969, while still employed, Karsanbhai started making handmade quality detergent in his home as a means to earn some side incomeNaming it Nirma after his daughter, Nirupama, it was run as a one-man enterprise utilizing indigenous technology for product creationHe would bicycle through the local neighborhoods to sell the detergent on the way to work

Beginnings of NirmaMost detergents at the time were priced at around Rs. 13/kg. Nirma was priced at Rs. 3/kgNirma was an instant success in the local neighborhoods and offered great value as a high quality product for a low priceAfter three years of reaping profits, Karsanbhai left his job and set up a small workshop in a suburb of Ahmedabad

Nirma RevolutionNirma revolutionized the detergent market which had been dominated by big multi-national, billion dollar companies such as Hindustan Lever and Proctor & GambleEffectively targeted low-income families a large class of society that had been ignored by established companiesWithin a decade, Nirma became the largest selling detergent in India

Nirma ExpansionAfter establishing its leadership in economy-priced detergents, Nirmas foray into the premium brand segment for soap and detergents was equally successfulNirmas annual sales touch 800,000 tones, making it one of the largest volume sales with a single brand name in the world

Nirma and SocietyNirma was made of an innovative formula which was phosphate-free and deemed environmentally friendly.Since the process of manufacturing Nirma detergent was labour intensive, they became a leading employer in India.Currently, Nirma employs over 14,000 individuals

Super Nirma DetergentNima SandalNirma Beauty SoapNirma Shudh Salt

Perfection of the 4 PsProductPricePlacePromotionCornerstones of MarketingRs. 3/kgCompetition at Rs. 13/kgLocal villagesSame advertisement jingle for 30+ years

Nirma Market ShareNirma is the largest detergent brand with a market share of 38% and the second largest toilet soap brand in India with a market share of 20%Nirmas annual turnover is Rs. 2500 crore

Dr. K.K. Patel in the PresentCurrently, Dr. Karsanbhai Patel is worth over USD $640 million (Rs. 2880 crore)Served as a Chairman for two terms to the Government of Indias Development Council for soaps and detergents and as President of Gujarat Detergent Manufacturers Association.

Dr. Karsanbhai Patel is a recipient of various awards and accolades, including: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.Dr. K.K. Patel in the Present

Philanthropic EffortsStarted the Nirma Education and Research Foundation to oversee an Institute of Technology (train leading engineers) and an Institute of Management (business).NirmaLabs education project was aimed at training and incubating entrepreneurs.

SummaryK.K. Patel started making handmade detergent from his houseSold about 15 20 packets at Rs. 3/kg (around Rs. 50/day)Eventually, he left his job seeing an opportunity to make it a massive enterpriseCurrently, the company is the leading seller of detergents in India and is trying to become an international playerK.K. Patel came from nothing and made something of himself. Truly a Rags to Riches story.

Accidental Fortune

Starting a BusinessThe lack of any such precedent in my family made the venture fraught with fear of failure. But farmers from North Gujarat are known for their spirit of enterprise.