Nirma Ltd.

Nirma is one of the most recognizable Indian brands. Its story is a classic example of the success of Indian entrepreneurship in the face of stiff competition. Nirma took on the might of giant multinationals and wrote a new chapter in the Indian corporate history. Starting as a one-man operation in 1969, today, Nirma has about 14, 000 employee-base and annual turnover of more than Rs. 25, 00 crores. Founder of Nirma is Dr. Karsanbhai Patel, son of a small-time farmer and a qualified Science graduate. In 1969, the year he founded Nirma, Karsanbhai Patel was working as junior chemist in Government laboratory. In the night Karsanbhai used to make detergent in the 100 Sq. Ft. back yard of his home, using bare hands and bucket. In 1960s and 1970s, the domestic detergent market had only premium segment, with very few players and was dominated by MNCs. After making the detergent Karsanbhai used to pack it in polythene bag and sold it door-to-door. He priced the detergent at Rs. 3 per kg, when the available cheapest brand in the market was Rs. 13 per kg. In a short span of time, with indigenous process, packaging and low-profiled marketing, Nirma created an entirely new market segment in domestic marketplace and quickly emerged as dominant market player. Nirma rewrote the marking rules and its success story became one of the widely discussed case studies in the B-schools across the world. In the 1980s Nirma catapulted Surf, which was a well-established detergent product by Hindustan Lever, and occupied the top slot in the detergent products segment-a slot it has made its own. In 1990, Nirma entered the toilet soap market and today it is the second largest toilet soap brand in India. Today, Nirma has one of the largest volume sales with a single brand name in the world. Products 1. Consumer Products of Nirma:

Soaps: Nirma Bath Soap, Nirma Beauty Soap, Nirma Lime Fresh Soap, Nima Rose, Nima Sandal Detergent: Nirma Washing Powder, Nirma Detergent Cake, Super Nirma Washing Powder, Super Salt: Nirma Shudh Scouring Products: Nirma Clean Dish Wash Bar, Nima Bartan Bar

Nirma Detergent Cake, Nirma Popular Detergent Powder, Nirma Popular Detergent Cake

2. Industrial Products:

LAB (Linear Alkyl Benzene) AOS (Alfa Olefin Sulfonate) Sulfuric Acid Glycerin Soda Ash Pure salt Vacuum Evaporated Iodized Salt SSP ( Single Super Phosphate ) Sodium Silicate

Company History - Nirma

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 To 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 N-Paraffin. 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 floating-rate 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 Ahmedabad-based 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/-.