Dr. Karsanbhai Khodidas Patel

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Dr. KarsanbhaiKhodidas Patel

• Rags to Riches

2
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

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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

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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

5
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

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Nirma Expansion

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

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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

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Nirma Shudh Salt
Nirma Beauty Soap
Super Nirma Detergent
Nima Sandal
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Perfection of the 4 Ps
Rs. 3/kg
Competition at Rs. 13/kg
Price
Product
Cornerstones of Marketing
Promotion
Same advertisement jingle for 30 years
Place
Local villages
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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
• Nirmas annual turnover is Rs. 2500 crore

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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 Indias Development Council for
  soaps and detergents and as President of Gujarat
  Detergent Manufacturers Association.

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Dr. K.K. Patel in the Present

• 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.

13
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.

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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.
15
Accidental Fortune
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Starting a Business

The 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.