Company Profile Company's Slogan Company's Vision Nirma is a customerfocused company committed to consistently offer better quality products

and services that maximise value to the customer. Company's Mission This customer-centric philosophy has been well emphasised at Nirma through: * Continuously exploring & developing new products & processes. * Laying emphasis on cost effectiveness. * Maintaining effective Quality Management System. * Complying with safety, environment and social obligations. * Imparting training to all involved on a continuous basis. * Teamwork and active participation all around. * Demonstrating belongingness and exemplary behaviour towards organisation, its goals and objectives.

Special Notes - Company Type Private Sector Industry Sector FMCG and Consumer Durables Products / Services 1. Synthetic Detergents 2. Toilet Soaps 3. Soda ash No. of employees Not Disclosed Other locations of factories / offices Plants at Mehsana, Sanand, Baroda, Bhavnagar, Rajkot, Viramgam (all in Gujarat) Financial result for time period April 2009 - March 2010 - Sales Rs. 4832 Crores - Profit before tax Rs. 331 Crores - Net profit after tax Rs. 249 Crores - CSR Budget Not Disclosed Remuneration of MD/CEO Rs. 1 Crore CSR Activities Trust / Foundation for CSR Nirma Education & Research Foundation (NERF), Nirma Memorial Trust and Nirma Foundation CSR Areas

1. Community Welfare 2. Education 3. Women Three main CSR activities 1. Education 2. Community Welfare 3. Women Publish Sustainability Report No CSR activities in brief As on 25-1-2011, the CSR information mentioned on the website, is same as the previous year. Corporate Social Responsibilities

http://www.nirma.co.in/social_respon sibilities.htm

Nirma's vision visualises itself as a vibrant, pro-active and widely admired, ethical corporate citizen. Nirma believes, that exemplary achievements on the business points are not enough in the making of a good corporate citizen. In fulfilment of this role as a responsible part of the society and environment in which one operates, Nirma has undertaken a host of activities in the educational and social development areas. Realising the significant role of education - especially technical and managerial in socio-economic development of the nation, Nirma played a vital role by establishing the Nirma Education & Research Foundation (NERF) in 1994.

Recently, this Foundation has been awarded University status. This status gives way to shape up and expand into a body providing education in other courses like medicine, nursing, biotechnology, etc. along with the existing courses under a single roof of Nirma University. Today, this state-of-the art academic infrastructure runs various institution bodies such as Institute of Technology, Institute of Management, Institute of Pharmaceutical Sciences and Institute of Diploma Engineering. These all institutions are located in a disciplined, serene and pleasant environment. The campus blends beautifully with the green landscaping, aesthetic elegance of

arches and the vibrant pursuit of knowledge by the young aspirants. The environment gives full scope for group activities, which are plenty, as also to individual pursuits for development on preferred tracks. Institute of Management is a one of the premier business school, providing quality management education, and nourishing managerial talent. Within a short span, this institution achieved a position in Top25 B-schools of India. The institute is having state-of-art infrastructure facilities and eminent faculties are sharing and contributing their knowledge to nurture the Indian industry with best managerial skills. Presently, the institution offers a two-

year full time programme in business management and managing family business disciplines. Fellowship programme is doctoral level programme for post-graduate scholars in management for those who want to pursue careers in research, consulting, and academics. The programme consists of domainspecific advance courses for skill formation in research, consulting and teaching. To impart management learning to working executive community, Institute of Management is also offering three-years part-time management programme. Management Development Programmes [MDPs] and Executive Diploma Programs [EDPs] are uniquely designed for working

executives, managers and entrepreneurs in the fields of Finance, Marketing and Human Resource Management. The programme has been tailored to suit the needs of working executive, managers and entrepreneurs who are seeking an exposure to modern management concept and practices. Institute of Technology offers degreeengineering courses in Chemical, Instrumentation & Control, Electronics & Communication, Computer Sciences, Civil, Mechanical and Electrical technologies. Again, the welldeveloped infrastructure, knowledgebased faculties and facilities offered at the institution, gives it a priority

choice in student community. The institute also offers Post-graduation, advanced courses in various technology disciplines. Year-around different happenings and seminars keep the environment very lively and provide opportunities to her students to perform brilliantly in their disciplines. Institute is also offering Masters in Computer Application courses. Institute of Diploma Studies is offering four-year diploma programme. This programme covers sandwich pattern of multi point entry (MPE) and credit system (CS). This methodology helps students to comprehend industrial practices when they are in the institution

allowing them opportunity to develop skills in far better way than their counterpart of non co-operative type programme. This institute is recognized by the All India Council for Technical Education (AICTE) and State Government of Gujarat. Institute of Pharmaceutical Sciences is responsible for preparing students to enter into a career in pharmacy and function as professionals and responsible citizens in changing health care systems. A dynamic, challenging and comprehensive curriculum, includes a foundation in the biological, biomedical, clinical, pharmaceutical and physical sciences, clear focus on application and use of knowledge in practical

settings, and a general education in healthcare systems, ethics, management, professional issues, communication and practical skills. NirmaLabs is another contribution of Nirma with an objective to nurture, promote and facilitate potential entrepreneurs in their pursuit of knowledge based large-scale wealth generation for stakeholders and society. The prospects will undergo the program of grooming and incubation at NirmaLabs, and will then be supported to build the incubated ventures with appropriate support. Nirma has already contributed Rs. 350 million for the development of

these institutes, an amount, which is likely to rise further to Rs. 500 million. The infrastructure facilities created here are of international standards and they have already become models for similar institutes. Plans are underway to start Post Graduate & Research Courses in Management and Technology, as well as an IAS training center and a programme in Masters of Computer Applications. Nirma Memorial Trust and Nirma Foundation - Nirma Memorial Trust looks after deprived women in Gujarat. It builds Ashrams and guesthouses for pilgrims and the elderly. The Nirma Foundation, set up in 1979, contributes towards the running of schools, colleges, temples

and social institutions, within the state and outside. Chanasma Ruppur Gram Vikas Trust in Mehsana of which Mr. K. K. Patel is the founder trustee and President provides education, maintenance of public health and related facilities in rural areas. The trust has started several institutions in Ruppur, including the Arts & Commerce College, and an ITI training institute and a ladies hostel.

1980 - The Company was incorporated on February 25, as Private Limited Company to carry on the business of manufacturing and selling Synthetic Detergents, Soaps, Chemicals and Allied Products. The Company is promoted by Shri Karsanbhai K. Patel. 1993 - The Company became a deemed public limited Company under Section

43-A of the Companies Act, 1956 and was then converted into a Public Limited Company by passing a special resolution at the Extra-ordinary General Meeting held on November 08. - The Company proposes to set up a 1200 tpd (4,20,000 tpa) Soda Ash Project in technical collaboration with AKZO NOBEL ENGINEERING BV

(AKZO) of Netherlands based on the Dry Lime Technology as a backward integration to the existing activities. - The company proposes to set up a facilities to manufacture Toilet Soaps with an installed capacity of 60,000 tpa and Synthetic Detergents with installed capacity of about 3,00,000 tpa. - The Company will be entering into a long term agreement with the

Bhavnagar Municipal Corporation for providing of requisite quantity of sewage water. 1994 - The Company came out with its maiden public issue of Equity Shares of Rs.10/- each for cash at a premium of Rs.100/- per share aggregating for Rs.44.78 crores in February.

- The Company also ventured into manufacture of Fatty Acid, Glycerine, Toilet Soaps, Sulphuric Acid and Alfa Olefin Sulphonate (AOS). - Nirma Ltd. has become a multi product company representing a wide array of product lines starting from Detergent Powders and personal care products like Toilet Soaps to chemicals like Sulphuric Acid, Glycerin, Alfa Olefin Sulphonates, Fatty Acids, Oxygen etc.

- The Brand name NIRMA is owned by Nirma Chemical Works Pvt. Ltd. which has given a non exclusive license to AME thereby allowing AME to use the Nirma brand trade marks. - The Company sells Sulphuric Acid, Oleum, Alfa Olefin Sulphonates, Glycerin and Oxygen directly to industrial consumers on a regular basis.

- The Company has also installed 26 Wind Turbine Generators (WTG) with a capacity of 5.94 MW to generate power at Dhank Dist., Rajkot. - Nilnita Chemicals Limited will be amalgamated with the Company with effect from 1st April. - The Company is setting up a desalination facility for producing about 200 cu. mtrs per day of soft water.

- The Company proposes to establish R&D Centre at site for better waste utilisation and infrastructural betterment. - The Company has entered into a Memorandum of Understanding with Indian Oil Corporation Ltd., for release by I.O.C.L. of 80,000 MTPA net of LAB feed stock in case the Company decides to establish a plant for

the production of 80,000 MTPA of Linear Alkyl Benzene. - The company has also installed equipments for testing the bio-degradability of various surfactants. 1995 - The Company is setting up salt works facility at Kalatalav on 25,000 acres of land adjacent to its proposed Soda Ash plant for meeting its

entire salt requirement. - The Company has entered into an Agreement with Humphrey & Glasgow Consultants Ltd. for Detailed Engineering, construction supervision including Civil and Architectural Designs and Procurement Services for the Soda Ash Plant. - The Company would be entering into Equipment Supply Agreement(s) with

the Critical Plant & Equipment Suppliers which, inter-alia, should provide for performance guarantee of the equipment, penal provisions for non-fulfilment of guaranteed norms, delay in delivery and defects in workmanship/design etc. 1996 - During the year, Company has introduced Shampoo, which has been seed

marketed and has been accepted well by the consumers. - During the year, on account of modernisation, Company has successfully manufactured IP Grade (Pharmaceutical Grade) Glycerin and the same has been well accepted and is in good demand. - The Company has technology tie up with UOP Inter Americana Inc.,

U.S.A. who will be providing technical and basic engineering services. The Company has also tied up with Uhde India Limited for providing detailed engineering services. - Issue of 81,41,750 - 17% secured non convertible debentures and/or secured premium notes of the face value of Rs 200 each for cash at par aggregating Rs 162,83,50,000 alongwith four detachable warrants

attached to each NCS/SPN, to the shareholders of the company on rights basis in the ratio of one NCD/SPN for every two equity shares held by them on 9th August. 1997 - Nirma is one of the country's largest detergent producers selling over 4.5 lakh tonnes of detergent and having the largest market share

in the low value mass market brands. Nirma, powder sells more than Hindustan Lever's Wheel, though Hindustan Lever is the largest producer of detergent and toilet soaps put together. - Nirma Ltd is launching a mega public offer totalling Rs. 350 crore. The offer will be distributed through the 100 per cent book-building process, whereby the sale price of the share and the total size of

the offer will be driven by demand for the stock. - Nirma is not only India's largest selling brand in detergent segment but is also the second largest manufacturer of toilet soap in the country. - Nirma Ltd has entered into a separate agreement with Nirma Chemical Works Ltd (NCWL), the trademark owner of the Nirma brand, for

exports. - Nirma has entered into a separate agreement with Nirma Chemical Works, the trademark owner of the `Nirma' brand, for exports. - The company has created Nirma Consumer Care Ltd. a wholly owned subsidiary in August, which is the sole licensee of the brand name Nirma within India. - The 75,000 tpa linear alkyl benzene (LAB) plant was commissioned

in December, at Alindra near Baroda in Gujarat. 1998 - ICRA has assigned an LAAA rating to the Rs.200 crore Non-convertible debentures programme of Nirma Ltd (NL), indicating highest safety. - The company Nirma has already announced successful completion of it's

state-of-the-art 80,000 tpa Linear Alkyl Benzene plant. - Nirma is one of the few Indian companies that have matched the MNCs in the retail sales through innovative marketing strategies. - The firm has set up state-of-the-art packaging and printing units and will now directly produce key raw materials to improve product quality.

1999 - The edible salt market is set to witness a keen battle with a new entrant, Nirma Salt, about to hit the market. - The company is putting up a three-stage vacuum salt plant with an installed capacity of 280,000 tonnes a year. - The overall sales growth has been constrained due to a plant shutdown

in the industrial product segment to manufacture NParaffin. 2000 - Nirma has decided to acquire the business of Kisan Industries for a cash consideration of Rs 200 crore with effect from 1st April. - Kisan Industries, having manufacturing facilities for detergents and

fertilisers and for printing and packaging at Moraiya village in Ahmedabad district, had the right to manufacture 20 per cent of Nirma brand of detergents. - Nirma has decided to issue redeemable NCDs with a face value of Rs 1,00,000 each at Rs 1,00,000 each, aggregating Rs 150 crores, in one or more tranches on private placement basis for a tenor of 350 days,

carrying an interest rate not exceeding 11.5 per cent per annum, payable yearly. - Credit rating agency ICRA has retained the highest safety rating of `LAAA' to the Rs 200 crore non-convertible debenture programme of soaps and detergents major Nirma 2002 -Garners Rs 75 crore by issuing one-year floatingrate debentures

-Undertakes manufacturing of toilet soap under the brand name 'Camay' for its subsidiary Nirma Consumer Care Ltd which obtains license from Procter & Gamble Home Products Ltd. Nirma Consumer Care Ltd launches the product on October 08, 2002 -Closes down Bangladesh unit due to low sales volumes 2003

-Shareholders of the Company approve Scheme of Arrangement for Demerger of Operating Division of Nirma Industries Ltd with the company -Kicks off a fresh valuation of its two key brands namely, Nirma and Nima, together with the trademarks -Gujarat High Court approves Scheme of Arrangement for Demerger of Operating Division of Nirma Industries Ltd with the company

2004 Nirma Education and Research Foundation (NERF) has set up NirmaLabs, a not-to-profit Section 25 company with a corpus of over five crore, to nurture talented individuals in their pursuit of high-tech, knowledge-based wealth generation. - Karsanbhai Patel, promoter of the Ahmedabadbased detergents major

Nirma Ltd, is becoming a venture capitalist. A Patel entity, Nirma Education and Research Foundation, has set up a new company, NirmaLabs, which will incubate talented individuals and projects. 2007 - The Company has splits its face value from Rs.10/to Rs.5/-.

Introduction :: Introduction : Name : Pooja Narwani Subject : marketing management Index :: Index : Companys Introduction Overview History Companys Logo Companys Profile Business Description Major Plants

Slide 4: Departments H.R. Department Production Department Marketing Deaprtment Finance Deaprtment Business Strategy Recognitions Facts Contd Companys Introduction :: Companys Introduction : Nirma is a group of companies based in the city of Ahmedabad in western India that manufactures products ranging from cosmetics, soaps, detergents, salt, soda ash, LAB and Injectibles . Karsanbhai Patel, a well known entrepreneur and philanthropist of Gujarat, started Nirma as a one-man operation. Today Nirma has over 15000 employees and a turnover

of over Rs. 3550 crores . In 2004, Nirma's detergent approached 800,000 tonnes one of the largest volumes sold in the world under a single brand 'NIRMA'. Overview :: Overview : Starting as a one-product, one-man outfit from a 100 sq ft (9.3 m 2 ) room in 1969, Nirma became a very successful company within three decades. The company had multilocational manufacturing facilities, and a broad product portfolio under an umbrella brand Nirma. The company's mission to provide, " Better Products, Better Value, Better Living " contributed a great deal to its success. Nirma successfully countered competition from

HLL and carved a niche for itself in the lower-end of the detergents and toilet soap market. The brand name became almost synonymous with low-priced detergents and toilet soaps Slide 7: Nirma realized that it would have to launch products for the upper end of the market to retain its middle class consumers who would graduate to the upper end. However, analysts felt 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 more than 30% share in the detergent market. Aided by growth in volumes and commissioning of backward integration projects, Nirma's

turnover for the year ended March 2000 increased by 17% over the previous fiscal, to Rs. 12.17 bn. Contd Genesis :: Genesis : 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 .

Slide 9: 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, _______. Contd Slide 10:

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 Indias 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. Contd

Heritage :: Heritage : In scorching heat of 1969, a son of small-time farmer was trying to mix Soda Ash and few other intermediaries, to make a detergent produce. He was a qualified Science graduate and was working as junior chemist in Government laboratory. As a moonlighting activity, he was making detergents in the 100 Sq. Ft. back yard of his home, using bare hands and bucket. Once the mixture is ready, he used to pack them in polythene bag and was selling door-to-door Gradually, the product became well accepted in the consumer community, and the rest is known to one and all This is a success saga of a first generation entrepreneur, on his way to create history in the Indian

marketplace - that was Dr. Karsanbhai Patel. Slide 12: In a short span, he captured the domestic market, with a quality product. He swiftly crafted low-to-medium consumer pockets a whole new consumer segment for detergent category. He took on mighty multi-nationals and rewrote the marketing rules. In true sense, he spearheaded the market revolution by offering innovative, value-for-money products, and changed the cloth-washing habit of Indian housewives - the revolution called Nirma . From initial days, Nirma believed in value-formoney equation, in creating and maintaining long-lasting relationships. It

has always remained committed to offer better products, at better value, for better living Contd Vision, Mission & Philosophy :: Vision, Mission & Philosophy : Nirma is a customer-focused company committed to consistently offer better quality products and services that maximise value to the customer.This customercentric philosophy has been well emphasised at Nirma through: Continuously exploring & developing new products & processes. Laying emphasis on cost effectiveness. Maintaining effective Quality Management System. Complying with safety, environment and social obligations. Imparting training to all

involved on a continuous basis. Teamwork and active participation all around. Demonstrating belongingness and exemplary behaviour towards organisation , its goals and objectives. Slide 14: Nirma is a phenomenon and synonymous with Value for Money. The brand transcends the specific dynamic of any particular product category, which is best captured in its above mission statement a statement of sustained innovation, an unceasing effort to deliver better value to consumers, through better product quality. Contd Corporate Social Responsibility ::

Corporate Social Responsibility : Instututions : Nirma Education & Research Foundation (NERF) (1994) Institute of Technology, Institute of Management, Institute of Pharmaceutical Sciences Institute of Diploma Engineering Nirma Labs Slide 16: Foundations : Nirma Memorial Trust and Nirma Foundation - Nirma Memorial Trust looks after deprived women in Gujarat. Chanasma Ruppur Gram Vikas Trust in Mehsana of which Mr. K. K. Patel is the founder trustee and President provides education, maintenance of public health and related facilities in rural areas. Contd

History :: History : In 1969, dr. karsanbhai patel , a chemist at the Gujarat Government's Department of Mining and Geology manufactured phosphate free Synthetic Detergent 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. Karsanbhai Patel Slide 18: Soon, there was a huge demand for Nirma in Ruppur (Gujarat), Patel's hometown. He started packing the formulation in a 10x10ft room in his house. Patel named the powder as Nirma , after his daughter Nirupama . Patel was

able to sell about 15-20 packets a day on his way to the office on bicycle, some 15 km away. By 1985, Nirma washing powder had become one of the most popular, household detergents in many parts of the country. By 1999, Nirma was a major consumer brand offering a range of detergents, soaps and personal care products. In keeping with its philosophy of providing quality products at the best possible prices, Nirma brought in the latest technology for its manufacturing facilities at six locations in India. Contd Slide 19: Nirma's success in the highly competitive soap and detergent market was attributed to its brand promotion efforts, which was

complemented by its distribution reach and market penetration. Nirma's network consisted of about 400 distributors and over 2 million retail outlets across the country. This huge network enabled Nirma to make its products available to the smallest village. In November, 2007, Nirma purchased the American raw materials company Searles Valley Minerals Inc. - making it among Top-7 Soda Ash manufacturer in the world. Contd Company Logo :: Company Logo : Company Profile ::

Company Profile : Company Profile: Nirma Ltd Ticker : 500308 Exchanges: BOM 2010 Sales: 43,366,000,000 Major Industry: Chemicals Sub Industry: Household Chemicals (FMCG) Country: INDIA Employees: 15000 Business Description :: Business Description : Nirma Limited is an India-based company. It has a portfolio of soaps and surfactants, pharma and processed minerals. The Company operates in four segments: soaps and surfactants, pharma business, processed minerals and other businesses. The soaps and surfactants business include soaps and detergents, as well as chemicals and packaging required in their manufacture. The processed

minerals include the Company's operations in the United States. The other businesses include single super phosphate, vaccum salt, iodised salt, toothpaste and oil. Major Plants :: Major Plants : Consumer Products Soaps Detergents Edible & Industrial Salt Industrial Products Soda Ash Linear Alkyl Benzene Packaging Alpha Olefin Sulfonate Sulfuric Acid Glycerin Single Super Phosphate Infusions Injectibles Critical Care Products Medical Disposables Slide 24:

Soda Ash : Investment of Rs. 1,140 crores Capacity 650,000 TPA 770 m3/hr capacity Sea Water RODM plant 40 MW Captive co-generation plant 10,000 MT solid handling Energy efficient technology from AKZO, Netherlands Only Soda Ash plant in the world with full DCS controls ICMA award for Best Total Water Management Practices in Chemical Industry Category Contd Slide 25: Linear Alkyl Benzene ::... Investment of Rs. 630 crores 75,000 TPA capacity Only second plant in the world with Ecofriendly Non HF technology from UOP, USA Bio-degradable product70 km of integrated pipeline network for feed stock 8,00,000 TPA of Feed Stock 32%

market share DCS controlled fully automatic plan Contd Slide 26: Packaging ::... Full range of Packaging facilities 13,500 TPA of packaging material 7,200 TPA of Poly Ethylene film manufacturing 6,000 TPA Paper Wrapper printing 6,000 TPA Laminated Wrappers & Pouch manufacturing 3,600 TPA of Stiffner Boards Poly Coating and Slitting 14,000 TPA Craft Paper manufacturing 12,000 TPA Corrugated Box manufacturing Contd Slide 27: State of art production facilities 8 colour printing from Cerruti Spa, Italy 2 lines of

3 - Layer Extrusion Plant from Reifenhauser, Germany Automatic Control from Prestech, U.K. and Eltromet, Germany Contd Slide 28: Soaps ::... Investment of Rs. 200 Crores30,00,000 Soap pieces sold per dayAnnual sales of Rs. 500 crore20% market shareSecond largest soap manufacturer in IndiaFour lines of 500 soaps per minute Contd Slide 29: Detergents ::... 50,00,000 pieces sold per day38% market shareLargest Detergent manufacturer of India Contd

Slide 30: Edible Salt ::... Asias largest salt works Spread over 30,000 acres Edible salt capacity of 288,000 tpa Edible vacuum evaporated salt plant with Technology from akzo nobel , netherlands Tripple effect monel cladded evaporator Fluidized bed dryer Human contact free process from water to packaging. Contd Slide 31: Industrial Salt ::... Asias largest salt works Spread over 30,000 acres Industrial salt capacity of 15,00,000 tpa Contd Slide 32:

Others ::... AOS ( Alfa Olefin Sulfonate ) Sulfuric Acid Glycerin SSP ( Single Super Phosphate ) Contd Subsidiary Companies of Nirma :: Subsidiary Companies of Nirma : The Company's subsidiaries include Nirma Consumer Care Ltd., Karnavati Holdings Inc., Searles Valley Minerals Inc., Searles Valley Minerals Operations Inc., Searless Valley Residences LLC, Searless Domestic Water Company LLC, Searles Valley Minerals Wurope, Trona Railway Company LLC and NATI LLC. Departments in Nirma :: Departments in Nirma : H. R. Deaprtment Production Department

Marketing Department Finance Department Slide 35: h. R. Department Management :: Management : BOARD OF DIRECTORS : Dr. K. K. Patel, Chairman Shri Rakesh K. Patel, Vice Chairman Shri Shrenikbhai K. Lalbhai Shri Pankaj R. Patel Shri Rajendra D. Shah Shri A. P. Sarwan Shri Chinubhai R. Shah Shri Kaushikbhai N. Patel Shri Kalpesh A. Patel, Executive Director Shri Hiren K. Patel, Managing Director

Slide 37: AUDITORS Hemanshu Shah & Co. Chartered Accountants Ahmedabad COMPANY SECRETARY Shri Paresh Sheth Registered Office :: Registered Office : Nirma House Ashram Road Ahmedabad 380 009 Gujarat India. Phone:+91-79-27546565 74 Fax:+91-79-27546603 / 05 E-mail: info@nirma.co.in Subsidiary Company :: Subsidiary Company : NIRMA CONSUMER CARE LIMITED Nirma House Ashram Road Ahmedabad 380

009 Gujarat India. Phone:+91-7927546565 74 Fax:+91-79-27546601 Email: info@nirma.co.in Slide 40: Production Department Products :: Products : Consumer Products Soaps Detergents Edible Salt Scouring Products Industrial Products Soap :: Soap : Nirma Bath Soap Nirma Beauty Soap Nirma Lime Fresh Soap Nima Rose Nima Sandal Contd

Nirma Bath Soap :: Nirma Bath Soap : Toilet soap market in India was dominated by a very few MNCs which could monopolistically price their product. In 1992, sensing a strong need to expand the market through Penetrative Pricing, Nirma entered this market with the launch of Nirma Bath Soap, which is a carbolic (Red) soap. Although the carbolic soap segment is on decline, Nirma Bath has generated larger volumes each year. Packed in a red colour wrapper and available in 75 gram and 150 gram pack sizes, this soap has a Total Fatty Matter (TFM) of 60 %. Nirma Beauty Soap ::

Nirma Beauty Soap : With its market promise to offer Better Products, Better Value, Better Living, Nirma introduced Nirma Beauty Soap in the year 1992. Available in three different variants and pack sizes, this soap has a TFM content of 70%. Due to its admirable perfume and a higher TFM content, this brand, within a short span of five years, had achieved the status of the third largest selling toilet soap brand and still continues its outstanding performance. Nirma Lime Fresh Soap :: Nirma Lime Fresh Soap : This product had created a sensational marketing history in the Indian Toilet soaps market, when it was launched in 1997. Seventeen million packs of Nirma Lime Fresh soap

were sold in the very first month of its soft launch. Packed in a poly coated 75 gm carton, which is printed on the worlds best Cerruti 8-colour printing machine, this soap is available in green colour . With a lime aroma that tingles in ones sensory buds for a long time, this soap contains 80% TFM Slide 46: . The product launch of Nirma Lime Fresh had been extremely successful, being ranked as the Seventh Most Successful Brand Launch for the year 1998, as ranked by the Business Standard Marketing Derby, 1998. (as featured in The Strategist Quarterly, July-September 1998).

Nima Rose :: Nima Rose : The remarkable and phenomenal market response received by Nima Rose soap within just two months of its launch once again proved the merits of Nirmas commitment towards its consumers. Nima Rose soap has got an exceptionally soft rose fragrance which remains around body for a long time even after bath. The high TFM content of this product allows a consumer to have pleasant bath. This brand had carved a niche in its segment by achieving leadership position just within two months of its launch. It is available in 100g and 150g pack sizes. Nima Sandal ::

Nima Sandal : Over the period, Indian toilet soap market has fragmented & has seen emergence of prominent floral fragrance segments as Sandal, Rose, Jasmine, etc. Nima Sandal is a one of such product in floral segment. This toilet soap has 80% TFM content, with rich & exotic fragrance. It promises benefits of Sandal oil & Turmeric powder. It is a premium product from Nima stable and is available in 100g and 150g packs. Detergent :: Detergent : Nirma Washing Powder Nirma Detergent Cake Super Nirma Washing Powder Super Nirma Detergent Cake Nirma Popular Detergent Powder Nirma Popular Detergent Cake Contd

Nirma Washing Powder :: Nirma Washing Powder : This product created a marketing miracle, when introduced in the domestic marketplace In 1969. Nirma envisioned the vast Fabric Wash market segment and sensed a tremendous potential therein. This product was priced at almost one third to that of the competitor brands, resulting into instant trial by the consumers. This brand had been ranked as the Most widely distributed detergent powder brand in India as per All India Census of Retail Outlets carried out in 435 urban towns by the AIMS (Asian Information Marketing & Social) Research agency [Brand Equity - The Economic Times, March 11, 1997].

Nirma Detergent Cakes :: Nirma Detergent Cakes : Deriving inspiration from its success in the Detergent Powder market, Nirma expanded its product portfolio by introducing the Nirma detergent cake in 1987. Here again, the excellent pricequality equation tempted the consumers to try the product. Available in 125g and 250g pack sizes, this brand has done exceptionally well. AIMS survey ranked Nirma detergent cake as The Most widely distributed detergent cake brand. Slide 52: As per the ORG-MARG Rural Consumer Panel [December 1998] survey, Nirma

brand is ranked highest in terms of penetration in washing cakes / bars category [BT Rural Market Watch, Business Today, June 22, 1999]. Contd Super Nirma Washing Powder :: Super Nirma Washing Powder : Exploding the myth that better quality always demands higher price, Nirma introduced a spray-dried blue colored washing powder in the premium segment, in 1996. Available in 25g, 500g and 1000g packs, this product outclassed its competitor brands. Though, priced almost 40 % lesser, thus providing a very attractive value-for-money proposition. This brand, within a short span of two years, had cornered

substantial market share in the premium detergent segment and continues to perform well Super Nirma Detergent Cakes :: Super Nirma Detergent Cakes : Nirma introduced Super Nirma Detergent Cake, in 1992. Available in 125g and 250g pack sizes, this product, within a short span, convinced the consumers of competitor brands to switch their loyalty towards Super Nirma detergent cake. With a high detergency value, this product offers quality wash to their consumers. Super Nirma Detergent Cake was ranked as the fastest Climber for the year 1997-98 in the detergent cake/ bars category [BUSINESS TODAY, Octobers 22, 1998].

Nirma Popular Detergent Powder: :: Nirma Popular Detergent Powder: : To cater to the needs of the specific target audience, Nirma launched a good quality product at a very affordable price. The objective is to convert the non-users of detergents into users and also prevent the competitors and local manufacturers to lure away the prospective Nirma consumers by sub-standard products. This product has created a loyal consumer base of its own and has established substantial amount of volumes. It is available in pack sizes of 500g and 1000g pack sizes Nirma Popular Detergent Cake::

Nirma Popular Detergent Cake: The positioning of Nirma Popular Detergent Cake is similar to that of Nirma Popular Detergent Powder. This product is available in 125g and 250g pack sizes, targeted to first-time detergent cake user segment. Edible Salts :: Edible Salts : Nirma Shudh Salt, manufactured with state-of-art production facilities, using the vacuum drying process, is the only salt in the country to be manufactured in an entirely automated plant and is free from any manual handling, involved at any stage of manufacturing. The fully automated process helps in controlling each and every parameter so as to sustain the basic

characteristics and quality of the product, with a guarantee of being the best in the quality parameters of iodine content, free flow nature, saltiness, whiteness and the size of the granules Nirma Shudh Iodized Salt : Contd Scouring Products :: Scouring Products : Nirma Clean Dish Wash Bar Nirma Bartan Bar Contd Nirma Dish Wash Bar :: Nirma Dish Wash Bar : Scouring bar is a potential emerging market in India. By offering Nirma Clean Dish Wash Bar, Nirma tried to tap this huge market. It is also a one-type of value product to the brand loyal consumers, catering their

distinct needs. This product, like other products from Nirma stable, offers best quality at the most affordable prices. It is available in 300g pack size Nirma Bartan Bar :: Nirma Bartan Bar : Nima Bartan Bar also addresses the emerging market of scouring bars. It is being offered in 200g and 400g pack sizes. From initial launch days, it has got huge market success and consistently performing well. Inspired by the success of the bar, Nima Bartan Dishwash Powder was also, subsequently soft-launched, in 1000g pack size. Channel Partners ::

Channel Partners : Nirma Limited markets its products through its fully owned subsidiary Nirma Consumer Care Limited (NCCL), which was incepted in 1985. NCCL in turn resells these products in the market under the umbrella brands NIRMA and NIMA along with extensions. The distribution strength of Nirma is based on mutually rewarding and satisfying relationship. Nirma pioneered the concept of flat distribution network. Nirma Consumer Care Limited operates with two parallel distribution networks. The NIRMA brand is marketed through the first network, which consists of about 450 exclusive distributors. It is one of the lowest cost FMCG distribution channels of the country.

Marketing Department: Marketing Department Principal Channel [Nirma Products]:: Principal Channel [ Nirma Products]: Lowest Cost system in India Speed in distribution Flexibility The NIMA range of products is marketed through a parallel marketing network that comprises of more than 2000 distributors. Parallel Channel [Nima Products]:: Parallel Channel [ Nima Products]: Wider Reach Speedy Market Intelligence Competitive edge & Better focus Complementing Principal Channel

Slide 65: All NIRMA and NIMA range of products have a retail reach of over two million retail outlets and more than 40 million loyal consumers spread all over the country. The Company has been successful in establishing an extremely good urban as well as rural presence through the two distribution channels. The distribution channels have played a significant role in making Nirma a household name. The efficient network has made Nirma Washing Powder and Nirma Detergent Cake, the brands with highest penetration in the respective product categories in the market. The network is well equipped to meet the

demands of the loyal consumers of the Company across the country. Contd Slide 66: The robust network ensures the availability of various products at different retail outlets across the nation. The Distribution channel is geared up to enhance trade relations, build up the retailer base by providing various benefits and incentives, organize and implement different activities to generate sales and manage numerous other programmes, schemes and activities concentrated towards business development. Contd Levels of Sales Promotion ::

Levels of Sales Promotion : At dealer level At salesman level At customer level Advertising :: Advertising : Radio Advertising T.V. Advertising Through add films promoting the sales of its products Distribution channel :: Distribution channel : Brand Ambassadors :: Brand Ambassadors : Sonali Bendre Preeti Jhangiani Hansika Motwani (Current) Slide 71:

finance Department Highlights of Financial Position of the company for the year 2009-10 :: Highlights of Financial Position of the company for the year 2009-10 : Slide 73: Business strategy Win win Results :: Win win Results : ROCE of 24 % and RONW of 22 %. 8 manufacturing Locations. Amongst op 10 Indian Brands. Nation wide Distribution reach 2500 Distributers 2000000 Retailers

40Depots Strong Human Resource Base 15000 employees 500 Professionals Recognition :: Recognition : Nirma Brand : Slide 77: Nima Brand : Contd Slide 78: facts Do you know ???: Do you know ??? Slide 80:

Contd Bibliography :: Bibliography : www.nirma.co.in www.google.com Slide 82: The company launched toilet soaps for the premium segment. However, analysts felt 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 more than 30% share in the detergent market. Aided by growth in volumes and commissioning of backward integration projects, Nirma's turnover for the year ended March 2000 increased by

17% over the previous fiscal, to Rs. 17.17 bn. A Humble Beginning In 1969, Karsanbhai Patel (Patel)2, a chemist at the Gujarat Government's Department of Mining and Geology manufactured phosphate free Synthetic Detergent 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 started packing the formulation in a 10x12ft room in his house. Patel named the powder as Nirma, after his daughter Nirupama. Patel was able to sell about 15-20 packets a day on his way to the office on bicycle, some 15 km away. Thus began the great journey. By 1985, Nirma washing powder 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. In keeping with its philosophy of providing quality products at the best

possible prices, Nirma brought in the latest technology for its manufacturing facilities at six places3 in India. Nirma's success in the highly competitive soaps and detergents market was attributed to its brand promotion efforts, which was complemented by its distribution reach and market penetration. Nirma's network consisted of about 400 distributors and over 2 million retail outlets across the country. This huge network enabled Nirma to make its products available to the smallest village. INTRODUCTION In the early 1970s, when Nirma washing powder was introduced in the lowincome market, Hindustan Lever Limited (HLL)1 reacted in a way typical of many

multinational companies. Senior executives were dismissive of the new product: "That is not our market", "We need not be concerned." But very soon, Nirma's success in the detergents market convinced HLL that it really needed to take a closer look at the low-income market. Starting as a one-product one-man outfit in 1969, Nirma became a Rs 17 billion company within three decades. The company had multi-locational manufacturing facilities, and a broad product portfolio under an umbrella brand Nirma. The company's mission to provide, "Better Products, Better Value, Better Living" contributed a great deal to its success. Nirma successfully countered competition from HLL and

carved a niche for itself in the lower-end of the detergents and toilet soap market. The brand name became almost synonymous with low-priced detergents and toilet soaps. However, Nirma realized that it would have to launch products for the upper end of the market to retain its middle class consumers who would graduate to the upper end. The company launched toilet soaps for the premium segment. However, analysts felt 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 more than 30% share in the detergent market. Aided by growth in volumes and commissioning of backward integration

projects, Nirma's turnover for the year ended March 2000 increased by 17% over the previous fiscal, to Rs. 17.17 bn. A HUMBLE BEGINNING In 1969, Karsanbhai Patel, a chemist at the Gujarat Government's Department of Mining and Geology manufactured phosphate free Synthetic Detergent 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 started packing the formulation in a 10x12ft room in his house. Patel named the powder as Nirma, after his daughter

Nirupama. Patel was able to sell about 15-20 packets a day on his way to the office on bicycle, some 15 km away. Thus began the great journey. By 1985, Nirma washing powder 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. In keeping with its philosophy of providing quality products at the best possible prices, Nirma brought in the latest technology for its manufacturing facilities at six places in India. Nirma's success in the highly competitive soaps and detergents market was attributed to its brand promotion efforts, which was complemented by its distribution reach

and market penetration. Nirma's network consisted of about 400 distributors and over 2 million retail outlets across the country. This huge network enabled Nirma to make its products available to the smallest village. After establishing itself in India, Nirma expanded to markets abroad in 1999. Its first foray was into Bangladesh, through a joint venture Commerce Overseas Limited. Within a year, the brand became the leader in the detergent market in Bangladesh. The company also planned to enter other regions like the Middle East, China, Russia, Africa and other Asian countries. THE ROAD TO SUCCESS

The use of detergent powder was pioneered in India by HLL's Surf in 1959. But by the 1970s, Nirma dominated the detergent powder market, simply by making the product available at an affordable price. In 1990, Nirma entered the Indian toilet soaps market with its Nirma Beauty soap. By 1999, Nirma became India's second largest manufacturer of toilet soaps by acquiring a 15% share of the 5,30,000 tonnes4 per annum toilet soap market. Though way behind HLL's share of 65%, Nirma's performance was remarkable as compared to Godrej, which had a share of 8% (Refer Figure I). By 1999-2000, Nirma had also garnered a 38% share of India's 2.4 million tonnes detergents market. HLL's share was 31% for the same period (Refer Figure II).

 Higher Costs NO Within a short span, Nirma had completely rewritten the rules of the game, by offering good quality products at an unbeatably low price. Nirma's success was attributed to its focus on cost effectiveness. From the very beginning, Patel had focussed on selling high-value products at the lowest possible price. The company endeavored to keep improving quality while cutting costs. To keep production costs at a minimum, Nirma sought captive production plants for raw materials. This led to the backward integration programme, as a

part of which, two state-of-the-art plants were established at Baroda and Bhavnagar, which became operational in 2000. This resulted in a decline in rawmaterial costs Fig 1. Market Share (Toilet Soap) 1999 2000 Fig 2. Market Share (Detergents) 1999 2000 The two new plants were completed ahead of schedule and at a much lower cost than estimated. The second phase of the Baroda plant was completed six months ahead of schedule and at a cost of Rs.2.5 bn as against the original

estimated cost of Rs. 2.8 bn. The Bhavnagar plant was completed in a record time of two years at a cost of Rs.9.85 bn as against the original estimated cost of Rs. 10.36 bn. The staff strength at this plant was a low 500. In contrast, Tata's Chemical's plant, which was about twice the capacity, employed 10 times the number of people. The Baroda plant produced 65000 tpa of NParaffin for Linear Alkyl Benzene (LAB) and Synthetic detergents. The technology for this plant was sourced from UOP Inter Amercana, USA. The Bhavnagar plant could produce 4,20,000 tpa of soda ash. The Akzo Dry Lime technology used in this plant was sourced from Akzo Nobel Engineering, Holland. The plant had 108 km of salt

bunds, which would help it to produce vacuum iodised salt in the future. Said Patel, "We have a capacity of producing three lakh tonnes of pure salt. No one, except Tata Salt, has a similar plant in the country." Nirma also curtailed its costs of distribution by eliminating intermediaries. The product went directly from the factory to the distributor. Hiren K Patel (Hiren), CMD, Nirma Consumer Care Ltd. explained, "An order is placed and the truck leaves straightaway. It is like a current account.We send the stock, they send the money." The company maintained depots in states like Andhra Pradesh, Tamil Nadu and southern Karnataka, as getting stocks to these

areas was sometimes difficult. In states like Uttar Pradesh and Madhya Pradesh, stocks were delivered directly from the plants. In March 2000, in a further cost reduction exercise, Nirma opted for inhouse printing and packaging by acquiring Kisan Industries at Moriya, near Ahmedabad. Nirma hoped this would improve the quality of its packaging. Brand Wars YES Nirma also had innovative marketing strategies. In the mid-nineties, Nirma successfully extended its brand to other product categories like premium detergents (Nirma Super Washing Powder and Detergent Cake), premium toilet soaps (Nirma Premium, Nima

Sandal, Nirma Lime Fresh). It followed its original marketing and pricing strategies in the economy segment as well as in the premium segment. In 2000, the company entered the hair care market with Nirma Shikakai, Nirma Beauty Shampoo, and Nirma Toothpaste. Unlike detergents, soaps were a personal-care product. Many customers had deep psychological bonds with their soap brands. Moreover, the market was segmented by HLL by price, by scent appeal, and by brand personality. So, Nirma positioned Nirma Bath against Lifebuoy, Nirma Beauty Soap against Lux6, Nima Rose against Breeze, and Nima Lime against Jai Lime8. Explaining how Nirma hoped to win this game, playing by HLL's rules, Hiren

said, "World-wide, there are only four or five platforms floral, beauty, health, freshness which account for most of the soaps sold." Nirma produced high-fattymatter soaps with the right scents, and priced them much lower than other brands. This created the 'sub-premium' segment. Nirma also mastered the game of managing the geographical diversity of consumer preferences. For instance, the North preferred pinks soaps and while the South preferred green ones. Sandal soaps were more popular in the South. Initially, the advertising spend of the company was very low, as compared to other FMCG companies. Nirma spent only 1.25-2% of its turnover on advertising as compared to the normal 6-10%.

For endorsing soaps, the company used starlets like Sangeeta Bijlani, Sonali Bendre, and Riya Sen, who were relatively unknown at that time. The advertisement messages were also very simple and focused on the benefit of the product. Nirma always preferred to place the product on the shelves first, receive feedback, and then create an enduring ad campaign. While introducing toilet soaps and detergents in the premium segment, Nirma relied on its time-tested weapon Price. The company planned to concentrate on volumes in these segments as well. But there was a change in the margins given to retailers. Unlike the economy products, where the cost

benefits were passed on to the consumers, Nirma passed on this benefit to the retailers. It gave them huge margins. For instance, for Nirma premium soap, it offered 52% and for Nirma shampoo, it offered an unbelievable margin of 140%. Analysts were skeptical about Nirma's chances of success in the premium segment of the soaps market. Unlike detergents, the soaps and shampoo market was highly fragmented. There were about 15-20 brands, and it was difficult for any soap to get a sizable market share. Moreover, this market was less price sensitive. So, it was difficult for any company to sustain itself on price alone. Analysts felt that it would take years to change Nirma's brand image.

According to a survey conducted by Samsika Marketing Consultants, Nirma's marketing firm, Nirma was considered to be a cheap brand. Many people were almost ashamed to admit that they were using it. To shed this image, in the late nineties, Nirma released corporate advertisements worth Rs 10 bn throughout India. Analysts felt that the fast growing shampoo market was a better bet than the premium soaps market. In India, only 30% of the population used shampoos and more than 70% of this group was in the urban areas. However, according to some analysts, though the perceived potential of the rural market was very high, in actual practice, it was difficult to persuade rural folk to use shampoos.

Another problem Nirma faced was that of inadequate infrastructure. Though it had a strong presence in the smaller towns and villages, it lacked the network necessary for penetrating urban areas. Thus, Nirma's entry into premium soaps and shampoos seemed to have failed.

THE ROAD AHEAD Though Nirma was better known as a producer of low-cost economy range of products, it was successful in the middleand up-market segments. But at the same time, competition was also increasing. While HLL continued to be a major competition, P&G and Henkel SPIC also adopted aggressive measures10. Players from unorganized sector were also

adding to the competition in the detergents and washing powder industry. However, Patel was confident of tackling the competition. He said, "We hold the price line and the satisfied consumer naturally reverts to us." In the past three decades, the brand had grown in value and volume on the basis of his success formula: "A customer does not look for one-time frills or feel-good factors. Rather, the householder wants a long term solution to his or her needs." What remained to be seen was whether Nirma's cost-focussed model would be a success in the long run. Thank you