INTRODUCTION In the early 1970s, when Nirma detergent was introduced into the low-income market, Hindustan Lever Limited (HLL)1 reacted in a manner typical of many multinational companies. Senior executives were dismissive of the new product: “This is not our market,” “We don't need to worry.” But very soon, Nirma's success in the detergent market convinced HLL that it really needed to take a closer look at the low-income market. Starting as a one-man single-product company in 1969, Nirma grew into a Rs 17 billion company in three years. decades. The company had manufacturing facilities spread across multiple locations and a broad product portfolio under the Nirma umbrella brand. The company's mission to provide "Better Products, Better Value, Better Life" has contributed greatly to its success. Nirma has successfully countered competition from HLL and carved a niche for itself in the low end of the detergent and toilet soap market. The brand has become almost synonymous with low-priced toilet detergents and soaps. However, Nirma realized that it would have to launch products for the high end of the market to retain the middle class consumers who would move to the high end. The company launched toilet soaps for the premium segment. However, analysts believed that Nirma would not be able to repeat its success story in the premium segment. In 2000, Nirma had a 15% share in the toilet soap segment and over 30% in the detergent market. Helped by volume growth and commissioning of backward integration projects, Nirma's revenue for the year ended March 2000 increased 17% over the previous fiscal year to Rs. A HUMBLE BEGINNING In 1969, Karsanbhai Patel, a chemist in the Mining and Geology Department of the Gujarat government, produced phosphate-free synthetic washing powder and started selling it locally. The new yellow powder was priced at Rs. 3.50 per kg, at a time when HLL's Surf was priced at Rs 15. Soon, there was a huge demand for Nirma in Kishnapur (Gujarat), Patel's hometown. He began packaging the formulation in a 10x12 foot room in his home. Patel named the powder Nirma, after his daughter Nirupama. Patel managed to sell around 15-20 packets a day as he cycled to the office, around 15km away. Thus began the great journey. By 1985, Nirma detergent had become one of the most popular detergent brands in many parts of the country. By 1999, Nirma was a major consumer brand, offering a range of detergents, soaps and personal care products.
tags