Transcript Dr. Karsanbhai Khodidas Patel

Dr. Karsanbhai
Khodidas 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 multinational, 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 economypriced 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
Nirma
Shudh Salt
Nirma
Beauty Soap
Super Nirma
Detergent
Nima Sandal
Perfection of the 4 P’s
Rs. 3/kg
Competition at Rs. 13/kg
Price
Product
Cornerstones of
Marketing
Place
Local villages
Promotion
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
Nirma
38%
Others
62%
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. 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.
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
K.K.
Patel
came
from
nothing
and(around
made
Rs. 50/day)
something of himself. Truly a “Rags to
 Eventually, he left his job seeing an
Riches” story.

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
Accidental Fortune
“
It all started as a means to earn side
income, and at that stage, I had never
imagined this kind of success.
”
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.
”