Dr. KarsanbhaiKhodidas Patel

“Rags to Riches”

Early Life Karsanbhai Khodidas Patel was born in 1944

in Northern Gujurat to a farmer family

He finished his B.Sc. in Chemistry at age 21

Thereafter, he joined New Cotton Mills in Ahmedabad as a lab technician

He later joined the Geology and Mining Department of the State of Gujurat

Beginnings of Nirma In 1969, while still employed, Karsanbhai

started making handmade quality detergent in his home as a means to earn some side income

Naming it Nirma after his daughter, Nirupama, it was run as a one-man enterprise utilizing indigenous technology for product creation

He would bicycle through the local neighborhoods to sell the detergent on the way to work

Beginnings of Nirma Most detergents at the time were priced

at around Rs. 13/kg. Nirma was priced at Rs. 3/kg

Nirma was an instant success in the local neighborhoods and offered great value as a high quality product for a low price

After three years of reaping profits, Karsanbhai left his job and set up a small workshop in a suburb of Ahmedabad

Nirma Revolution Nirma revolutionized the detergent

market which had been dominated by big multi-national, billion dollar companies such as Hindustan Lever and Proctor & Gamble

Effectively targeted low-income families – a large class of society that had been ignored by established companies

Within a decade, Nirma became the largest selling detergent in India

Nirma Expansion After establishing its leadership in

economy-priced detergents, Nirma’s foray into the premium brand segment for soap and detergents was equally successful

Nirma’s annual sales touch 800,000 tones, making it one of the largest volume sales with a single brand name in the world

Nirma and Society Nirma 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

Detergent

Nima Sandal

Nirma Beauty Soap

Nirma Shudh Salt

Perfection of the 4 P’s

Product

Price

Place

Promotion

Cornerstones of Marketing

Rs. 3/kg

Competition at Rs. 13/kg

Local villages

Same advertisement jingle for 30+ years

Nirma Market Share Nirma 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%

Nirma’s annual turnover is Rs. 2500 crore

Detergent Market Share

Others62%

Nirma38%

Dr. K.K. Patel in the Present

Currently, Dr. Karsanbhai Patel is worth over USD $640 million (Rs. 2880 crore)

Served as a Chairman for two terms to the Government of India’s 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 Efforts Started 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.

Summary K.K. Patel started making handmade

detergent from his house Sold 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 enterprise

Currently, the company is the leading seller of detergents in India and is trying to become an international player

K.K. Patel came from nothing and made something of himself. Truly a “Rags to Riches” story.

Accidental Fortune

”“It all started as a means to It all started as a means to earn side income, and at that earn side income, and at that stage, I had never imagined stage, I had never imagined this kind of success.this kind of success.

Starting a Business

”“The lack of any such The lack of any such

precedent in my family made precedent in my family made the venture fraught with fear the venture fraught with fear of failure. of failure.

But farmers from North But farmers from North Gujarat are known for their Gujarat are known for their spirit of enterprise. spirit of enterprise.