G.L. Bajaj Institute of Management & Research.

PGDM Institute
Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
PGDM BATCH-2022-24

MINOR PROJECT REPORT

ON

NIRMA
Submitted in Partial Fulfillment for the Award of the
DEGREE OF POST GRADUATE DIPLOMA IN MANAGEMENT
2022-24

GUIDED BY:                                                   SUBMITTED BY:

Dr. PIALI HALDAR                                                              NUPUR

MALHOTRA
                                                                                                                     PGDM 22072
 G.L. Bajaj Institute of Management & Research.PGDM Institute
Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
Minor Project Report
PGDM Batch 2022-24

FACULTY GUIDE CERTIFICATE 

This is to certify that the work reported in the Minor Project Report on “NIRMA”, submitted by
NUPUR MALHOTRA at G L Bajaj Institute of Management & Research. PGDM Institute,
Greater Noida, India, is a bonafide record of her/ his work carried out under my supervision.
This work has not been submitted elsewhere for any other degree or diploma.  

(Signature of Faculty Guide)

Name:  Dr. PIALI HALDAR

Date:
 G.L. Bajaj Institute of Management & Research.PGDM Institute
Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
Minor Project Report
PGDM Batch 2022-24

ACKNOWLEDGEMENT
I would like to thank the following people; without whom I would not have been able to
complete this Minor Project Report.

My heartfelt thanks goes to our Director Dr. SAPNA RAKESH for providing an opportunity to
work on the Minor project right from the first trimester of the program.

I convey my sincere thanks to my Faculty Guide Dr. PIALI HALDAR for providing me the
constant support and guidance to carry out my project effectively and efficiently. 

I would also like to convey my gratitude to all faculty members and staff for their support and
guidance.

Nupur Malhotra 
PGDM 22072
Trimester-I
PGDM Batch 2022-24
GL Bajaj Institute of Management & Research.PGDM Institute
 Executive Summary

Introduction - Nirma is a group of companies located in Ahmedabad. Nirma was started in 1969
by Dr. Karsanbai Patel. Today, they have around 18,000+ employees and the annual turnover is
2500 Crores. The products of Nirma were created by keeping in mind customer preferences.
Value for money products were created by Nirma. 

Product line - Nirma offers a wide variety of products to its customers. The products offered by
them are 
Soaps - Nirma Bath Soap, Nirma Beauty Soap, Nirma Lime Fresh Soap, Nirma Rose and Nirma
Sandal .
Detergents - Nirma Washing Powder, Nirma Detergent Cake, Super Nirma Washing Powder,
Super Nirma Detergent Cake .
Salt- Nirma Shudh Iodized Salt.
Scouring Products - Nirma Clean Dish Wash Bar and Nirma Bartan Bar.

Market Share - Nirma is a group of companies with a consolidated turnover of more than 7000
Crores. It is an industry leader in soaps and detergents. Nirma was incorporated in the year 1969,
now it has a large market cap of 4066 Crore. 

Competitors- The competitors of Nirma are Hindustan Unilever, Dabur India, Marico , Procter
and Gamble and ITC Limited.

PESTEL Analysis- It provides great detail about operating challenges which Nirma will face in
a prevalent macro environment that will affect the business in future. The macro environment
factors include inflation rate, growth rate and foreign exchange rate. Now every industry should
take care of the environment and manufacture their products. The micro environmental factors
include new entry of the competitors in the market, pricing strategies of competitors and
promotional strategies of competitors.

SWOT Analysis- The strengths of Nirma are strong brand equity, widespread distribution network ,
market leadership and successful campaigns . The weakness of Nirma includes a very limited export
market and it is unable to penetrate in the premium segment. The opportunities of Nirma include that
companies should identify specific needs like detergent for automatic washing machines, fragrance and
stain removal products . The threats of the company include major competitors' strategies to acquire
markets.
 TABLE OF CONTENTS 

SR. CONTENT PAGE

NO NO
1 INTRODUCTION 

1.1 PROFILE OF THE COMPANY

1.2 HISTORY

1.3 PRODUCT RANGE

1.4 MISSION , VISION AND PHILOSOPHY 

1.5 ORGANIZATIONAL STRUCTURE

2 MARKET SHARE AND POSITION OF COMPANY IN THE

INDUSTRY 

2.1 MARKET SHARE AND PERFORMANCE

2.2 ABOUT INDUSTRY AND OTHER COMPETITORS

2.3 FINANCIAL STATEMENTS 

3 PESTEL ANALYSIS

4 SWOT ANALYSIS

5 LATEST RESEARCH AND INVENTIONS

6 REFERENCES
 CHAPTER – 1
INTRODUCTION

1.1. Profile of the Company 

One of the most well-known Indian brands is Nirma. Nirma was started in 1969 by Dr.
Karsanbai Patel. The managing director of Nirma is Hiren K Patel and company secretary is
Paresh Sheth. It was incorporated on 25 February 1980. The headquarters of Nirma are located in
Ahmedabad. The number of employees in Nirma today are more than 18000 and the annual
turnover of 2500 Crores. Karsanbhai Patel was a junior scientist at a government lab in 1969, the
year he founded Nirma. Karsanbhai used to create detergent at night in his home's 100 square
foot backyard with just his bare hands and a bucket. In the 1960s and 1970s, MNCs dominated
the domestic detergent industry, which only had a small premium sector and very few
competitors. 

In 1969, Dr. Karsanbai Patel started door to door selling of detergent powder. The price of the
detergent powder was Rs 3 kg, which was the cheapest price of any product. Nirma offered
innovative and unique products to its customers, good packaging and an affordable price
product. In 1980 , the performance of Nirma was labelled as the “Marketing era” of that time.
Nirma has a marketing and distribution network of 400 distributors and around a million
retailers. It is serving around 300 million customers.

In the 1980s, Nirma overtook Hindustan Lever's well-known detergent product Surf and took the
top spot in the detergent products market, a position it has since claimed as its own. Nirma joined
the Indian market for toilet soap in 1990 and is currently the second-largest brand in the country.
As a single brand name, Nirma currently boasts one of the highest volume sales in the world.

1.2 History of the Company 

1980

On February 25, the company was established as a private limited company with the goal of
manufacturing and marketing synthetic detergents, soaps, chemicals, and related products. Shri
Karsanbhai K. Patel is the company's promoter.

1993
By adopting a special resolution at the Extraordinary General Meeting on November 8, the
Company, which had previously been regarded as a public limited company under Section 43 of
the Companies Act of 1956, became a public limited company.

As a backward integration to the current activities, the company plans to establish a 1200 tpd
(4,20,000 tpa) soda ash project in technical partnership with AKZO NOBEL ENGINEERING
BV (AKZO) of the Netherlands based on the dry lime technology.

The company wants to build factories to make synthetic detergents and toilet soaps, with an
installed capacity of 60,000 tpa each. with a 3,00,000 tpa installed capacity.  The Company will
conclude a long-term contract with the Bhavnagar Municipal Corporation to supply the
necessary amount of sewerage water.

1994

The Company issued equity shares in its first-ever public offering. of 10 rupees apiece for cash at
a premium of 100 rupees per share, totaling 10 rupees.in February for Rs. 44.78 crores.
Additionally, the business entered the production of fatty acids, glycerine, toilet soaps, sulfuric
acid, and alpha-olefin sulphonate (AOS).

Nirma Ltd. has developed into a multi-product corporation, representing a wide range of product
lines, from toilet soaps and detergent powders to chemicals like glycerin, fatty acids, oxygen, and
alpha olefin sulfonates. 

1995

At Kalatalav, the company built a salt works plant on 25,000 square feet acres of land close to
the plant's projected Soda Ash requirements. The Company and Humphrey & Glasgow have
reached an agreement detailed engineering and construction management consultants, Ltd.
providing procurement services for civil and architectural designs of the soda ash factory. 

1996
Shampoo was introduced by the company during the year and has since been a popular seed
product. Due to modernization, the company produced IP Grade (Pharmaceutical Grade)
glycerin throughout the year, which has been well received and is in high demand. UOP Inter
Americana Inc., U.S.A., a technology partner of the company, will offer technical and
fundamental engineering services.

1997

One of the biggest detergent manufacturers in the nation, Nirma produces over 4.5 lakh tonnes of
detergent annually and holds the lion's share of the low-end mass market brand market. Although
Hindustan Lever is the largest producer of detergent and toilet soaps combined, Nirma powder
sells more than Wheel. 350 crore rupees will be raised through a massive public offering by
Nirma Ltd. The offer will be dispersed using the 100% book-building method, in which the
demand for the shares will determine the sale price per share and the overall amount of the offer.

Nirma is not just the second-largest producer of toilet soap in India, but it is also the top-selling
brand of detergent overall.

1998

The company Nirma has already stated that its cutting-edge 80,000 tpa Linear Alkyl Benzene
facility has been successfully completed. Nirma is one of the few Indian businesses that, thanks
to creative marketing techniques, has been able to compete with MNCs in the retail sales. In
order to boost product quality, the company has set up cutting-edge packaging and printing
facilities and will now directly produce essential raw materials.

1999

With Nirma Salt, a new competitor, soon to enter the market, the edible salt market is about to
witness a fierce competition. A three-stage vacuum salt plant with an installed capacity of
280,000 tonnes per year is being built by the firm. Due to a factory shutdown in the industrial
product area to make N-Paraffin, the total sales growth has been restrained.

2000
Nirma continues to lead HLL. Nirma enters the retail business and opens a supermarket chain.
Nirma is one of the top six products that Asian consumers choose.

2001

Nirma enters the food retail industry.

2002

Nirma partners with P & G to produce Camay.

2004

NERF establishes Nirma Labs to develop talent

2005 

Nirma pays Rs. 300 crores to acquire Saurashtra Chem.

2006

Nirma is expanding into the pharmaceutical industry.

2007

The issuer split the face value of its notes in half, from Rs. 10 to Rs. 5. Investor complaints
should be directed to investors@nirma.co.in, according to the corporation.  Nirma signs a legally
binding contract to buy a producer of natural soda ash based in the United States.

2008

The business advises Dividend of 80%.

2010

Dividend of Rs 4.50 per share on 159142282 equity shares of Rs 5 each has been recommended
by Nirma for 2010.
1.3. Product Range of Nirma 

Nirma offered consumer and Industrial products. 

The consumer products of Nirma are - 

1. Soaps 

1.1. Nirma Bath Soap

In India, a small number of MNCs with pricing monopolies controlled the toilet soap business.
With the introduction of "Nirma Bath Soap," a carbolic (Red) soap, in 1992, Nirma entered this
market after perceiving a strong need to expand it through penetrative pricing. Despite the
declining market for carbolic soap, Nirma Bath has consistently produced higher volumes. This
soap, which comes in 75-gram and 150-gram pack sizes and is wrapped in a red color, has a 60%
Total Fatty Matter (TFM).

1.2. Nirma Beauty Soap

In 1992, Nirma introduced "Nirma Beauty Soap" under the slogan "Better Products, Better
Value, Better Living." This soap, which comes in three different pack sizes and varieties, has a
70% TFM content. This brand, which is still performing admirably, became the third-largest
selling brand of toilet soap in just five years because to its commendable fragrance and increased
TFM content.
1.3. Nirma Lime Fresh Soap

When it was introduced in 1997, this product made marketing history in the Indian market for
toilet soaps. In the first month following its soft launch, Nirma Lime Fresh soap saw sales of 17
million packs. This soap comes in green and is packaged in a 75 g poly coated carton that was
printed on the best 8-color Cerruti printing press in the world. This soap includes 80% TFM and
has a long-lasting lime scent that tingles the senses. According to the Business Standard
Marketing Derby, 1998, the product launch of Nirma Lime Fresh was so effective that it was
ranked as the Seventh Most Successful Brand Launch for the year (as featured in The Strategist
Quarterly, July-September 1998).

1.4. Nirma Rose

Nirma Rose soap received an incredible and amazing market response that once again
demonstrated the company's dedication to its customers. Nirma Rose soap has an incredibly
delicate rose scent that lingers on the body long after bathing. This product's high TFM content
enables a consumer to have a relaxing bath. Within just two months of its start, this brand had
already carved out a niche for itself in its market. It comes in 100g and 200g sizes.

1.5. Nirma Sandal

The Indian toilet soap market has become more fragmented over time, and notable floral
fragrance categories including Sandal, Rose, and Jasmine have emerged. Nirma Sandal is one
such item in the flowery sector. This toilet soap smells rich and exotic and contains 80% TFM.
The benefits from sandal oil and turmeric powder are touted. It is a high-end product from the
Nirma stable and is sold in packets of 100g and 150g.
2. Detergents

2.1. Nirma Washing Powder

When it was released to the domestic market, this product performed a marketing miracle. In
1969, detergents were so expensive that they were considered a luxury by the majority of
Indians. Nirma saw the enormous Fabric Wash market niche and felt it had enormous potential.
This product's pricing was roughly one third less than that of the competing brands, prompting
buyers to try it right away. Customers grew devoted to this brand as a result of its distinctive,
phosphate-free composition and helped it surpass more established, decades-old brands in terms
of volume. According to a ranking, this brand is the "Most Popular Detergent Powder Brand in
India."

2.2. Nirma Detergent Cake

Nirma expanded its product line by releasing the "Nirma detergent cake" in 1987, drawing
inspiration from its success in the Detergent Powder industry. Once more, a great price-quality
ratio persuaded them to try the product. This brand, which comes in 125g and 250g pack sizes,
has done remarkably well. According to an AIMS poll, Nirma detergent cakes are "The Most
Distributed Detergent Cake Brand." This product offers advantages including reduced melting in
water, improved stability, and a longer shelf life because of its distinctive formulation.
2.3. Super Nirma Washing Powder

Nirma created a spray-dried blue-colored washing powder in the luxury segment in 1996,
dispelling the belief that "better quality necessarily demands higher price." This product, which
was offered in packs of 25g, 500g, and 1000g, was superior to those of its rival brands.
Nevertheless, the price was over 40% lower, offering a highly appealing "value-for-money"
argument. Within just two years, this brand had carved up a sizable market position in the
premium detergent industry and was still doing well.

2.4. Super Nirma Detergent Cake

Nirma created Super Nirma Detergent Cake in 1992 to satisfy consumers' expanding
expectations and provide a value-chain product portfolio. This product, which comes in 125g and
250g pack sizes, quickly persuaded customers of rival brands to convert their loyalties to Super
Nirma detergent cake. This product gives its customers high-quality wash thanks to its high
detergency value.

2.5. Nirma Popular Detergent Powder

In 1992, Nirma developed Super Nirma Detergent Cake to meet the rising expectations of
consumers and offer a value-chain product portfolio. This item, which is available in 125g and
250g pack sizes, swiftly won over customers of competing brands to Super Nirma detergent
cake. Due to this product's strong detergency value, its clients receive high-quality washes.
2.6. Nirma Shakti Detergent Cake

Similar to how Nirma Popular Detergent Powder is positioned, so is Nirma Shakti Detergent
Cake. This product, which caters to the first-time detergent cake consumer category, is offered in
125g and 250g pack sizes.

3. Edible Salt

3.1. Nirma Shudh Iodized Salt

The only salt in the nation to be produced in a totally automated plant and free from any manual
handling at any point in the manufacturing process is Nirma Shudh Salt, which is produced using
cutting-edge production equipment and the vacuum drying process. With a promise of being the
best in the quality parameters of iodine content, free flow nature, saltiness, whiteness, and
granule size, the completely automated process aids in managing every parameter in order to
maintain the product's fundamental qualities and quality. It is being sold in a distinctive, colorful,
eye-catching moisture-proof 1 kg pack.
4. Scouring Products

4.1. Nirma Clean Dish Wash Bar

Nirma made an effort to access the enormous market by providing Nirma Clean Dish Wash Bar.
Additionally, it serves the specific needs of brand-loyal customers as a single-type of value
offering. Like other items in the Nirma stable, this one provides the highest quality at the most
reasonable costs. There is a 300g pack size option.

4.2. Nirma Bartan Bar

The Nirma Bartan Bar likewise targets the growing bar-scouring sector. It is available in packs of
200g and 400g. It has seen tremendous market success since its inception and has been
continually functioning effectively. 
The industrial products of Nirma are -

 LAB (Linear Alkyl Benzene)

 AOS (Alpha Olefin Sulfonate)
 Sulfuric Acid
 Glycerin
 Soda Ash
 Pure salt
 Vacuum Evaporated Iodized Salt
 SSP (Single Super Phosphate)
 Sodium Silicate

 
1.4. Mission, Vision and Philosophy of Nirma 
The vision of Nirma is “Better quality products and services that maximize the value to the
customers” .
The mission of Nirma is “Better Products , Better value and a better living”.
The philosophy of Nirma is
A corporation with a strong commitment to its customers, Nirma continually provides higher-quality
goods and services that maximize value for the consumer. At Nirma, this customer-centric attitude
has been strongly emphasized by:

 Constantly investigating and creating new products and procedures.

 Putting a focus on efficiency in terms of cost.
  Effective Quality Management System upkeep.
 Respecting social, environmental, and safety standards.
 Providing ongoing training to all those involved.
 Collaboration and active engagement everywhere.
 Exhibiting a sense of belonging and outstanding behavior toward the organization, its
objectives, and goals.

 
1.5. Organizational structure 
       

Name Designation

K.K Patel Chairman

Hiren K Patel Managing Director

Paresh Sheth Company Secretary

Shailesh V Sonara Director

Rakesh K Patel Vice Chairman

Kaushikbhai N Patel Non-Executive

Director

Vijay R Shah Non-Executive

Director

Purvi Anantanand Pokhariyal Non-Executive

Director

 
 
   
 
 
 
 
 
 
 
 
 
 
 

CHAPTER -2
MARKET SHARE
AND POSITION OF
THE COMPANY
2.1. Balance Sheet of Nirma 
 

Particulars  Note As at 31.3.2020 ( In As at 31.3.2019 ( In

No Cr ) Cr )

Assets 

1. Non - Current Assets 

Property , Plant and equipment 2 3039.78 4367.43

Right of use of assets 3 2.09 NIL

Capital work in progress 4 1,081.19 748.68

Investment Properly 5 10.30 10.30

Other tangible assets  6 3.03 16.55

Other tangible assets under 7 15.61 Nil

development

Financial assets

 Investment in subsidiary  8 533.38 4,533.38

 Investments  9 4,250.90 17.54

 Loans 10 0.14 402.96

 Other Financial assets 11 2.92 3.10

Other non-current assets 12 9.72 21.81

Total Non-current assets  8,949.06 10,121.75

2. Current assets 

Inventory  13 1,071.37 1,254.37

Investment  14 160.07 Nil

Financial assets

 Trade receivables  15 457.73 532.66

 Cash and Cash equivalent  16 94.73 11.40

 Bank Balances 17 3.34 24.71

 Loans 18 689.69 59.70

 Other financial assets  19 6.99 21.40

Other current assets  20 60.13 79.65

Current Tax Assets  21 65.64 Nil

Total Current Assets  2,609.69 1,983.89 

Total assets  11,558.75 12,105.64

Equity and Liabilities 

Equity

Equity share capital 22 73.04 73.04

Other equity 23 5,211.18 5,207.99

Total equity 5,284.22 5,281.03

Liabilities 

Non - Current Liabilities 

Financial liabilities 

Borrowings  24 3,937.08 3,095.14

Other Financial liabilities  25 79.02 78.41

Provisions  26 85.65 77.73

Deferred tax liabilities  27 85.65 77.73

Total non-current liabilities  4,246.55 3,547.79

Current Liabilities 

Financial liabilities 

Borrowings  28 480.01 907.90

Trade payables due to  29

Micro and Small enterprises  0.01 0.01

Other than Micro and Small 289.17 404.82

enterprises 

Other financial liabilities  30 618.12 1,442.28

Other current liabilities  31 127.63 125.05

Provisions  32 513.04 382.81

Current tax liabilities  33 Nil 13.95

Total current liabilities  2,027.98 3,276.82

 Total liabilities  6,274.53 6,824.61

Total equity and liabilities  11,558.75 12,105.64

2.2. Profit and Loss Statement of Nirma 

 

Particulars  Note 2019-2020 2018-2019 

no ( In Cr ) ( In Cr )

Revenue from operations  5,345.43 5,623.97

Other income  160.84 128.37

Total income  5,506.27 5,752.34

Expenses 

 Cost of material consumed  1,885.98 1,904.63

 Purchases of stock in trade 45.87 35.14

 Change in inventories of finished goods , stock (124.33) (28.83)

in trade , and work in progress

 Employee benefit expenses 303.13 298.30

 Finance costs  400.73 373.63

 Depreciation and amortization expense 273.72 259.18

 Other expense  1,926.41 1,941

Total expense  4,711.51 4,783.47

Profit before exceptional item and tax 794.76 968.87

Exceptional Item  189.71 Nil

Profit before tax 984.47 968.87

Tax expenses

Current tax 176.00 188.00

Tax expenses relating to earlier year (49.44) 0.01

MAT credit utilized  84.50 61.00

MAT credit entitlement relating to earlier year (11.90) Nil

Deferred tax charge/(credit)  1.22 (42.95) 

Total Tax Expenses  200.38 206.06

Profit for the year from continuing operations 784.09  762.81

Loss before tax from discontinued operations (7.56) (136.33)

Tax expense of discontinued operations  1.27 5.05

Loss for the year from discontinued operations  (8.83) (141.38)

Profit for the year 775.26 621.43

Other comprehensive income

Items that will not be reclassified to profit or loss (8.23) 16.91

Income tax relating to items that will not be reclassified 0.44 (0.80)
to profit or loss
 Items that will be reclassified to profit or loss  Nil Nil

Income tax relating to items that will be reclassified to Nil Nil

profit or loss

Total other comprehensive income (7.79) 16.11

Total Comprehensive income for the year 767.47 637.54

Earnings per equity share

Earnings per equity share (for continuing operations) 53.68 52.22

Earnings per equity share (for discontinued operations) (0.60) (9.68)

Earnings per equity share (for continuing and 53.07 42.54

discontinued operations)

 
2.3. Competitors
The competitors of Nirma are -

1. Marico
2. ITC Limited
3. HUL
4. Proctor and Gamble
5. Dabur India 
                                                       
 
 
 
 
                                          
 
 
 
 

CHAPTER - 3
PESTEL ANALYSIS
 
 
 
 
 
 
 
 
What is pestle analysis?

Pestle analysis is a tool to analyze the macro environment of the organization. PESTEL stands for -
political, economic, social , technological , environmental , and legal factors .

 
  
 

PESTLE Analysis of Nirma analyses the brand on its business tactics. PESTLE
Analysis examines the various external factors like political, Economic, social,
technological (PEST) which impacts its business along with legal & environmental
factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact
the business of the brand.

PESTLE analysis is a framework which is imperative for companies such as Nirma as it

helps to understand market dynamics & improve its business continuously. PESTLE
analysis is also referred to as PESTEL analysis.

 Political Factors
 Economic Factors
 Social Factors
 Technological Factors
 Legal Factors
 Environmental Factors

Political Factors:
The political factors in the Nirma PESTLE Analysis can be explained as follows:

It operates across various countries and keeping a tab of the changes in policies is a
must. The future of the products in a particular region is more or less dependent on the
political conditions in the region. The more the stability of the government, the higher is
the ease of working in that region.

There are various opportunities that it can utilize and make it as strength rather than just
a policy to be followed. With governments across the world supporting the efficient use
of its natural resources and it is working towards a sustainable environment, it has a
chance of getting involved with the government for the overall societal benefit. The
company itself has a political action committee.

This committee works on issues that directly affect its operations. It is registered with
the U.S. Federal Election Commission (FEC) and various state offices. It allows its
employees to pool personal and voluntary financial contributions to support candidates
at the federal, state and local level. These people elected at these different levels; help
shape the future policies that directly affect the company’s daily operations. Thus makes
sure its voice is heard, and the political factors do not create much of a turmoil.

Economic Factors:
Nirma business gets affected when the market changes be it anywhere across the
world. Higher the disposable income, the better it is for the company since more of its
product will be sold. Majority of its income comes from North America. With any
changes in the policies relating to income, there will be a sharp change in consumption
of necessity goods. It may be higher or lower depending upon the new policy. The
second largest contributor is Europe, followed by Asia, both of which are a mixture of
developed and developing countries, which shows the effect of disposable income
increase helps boost sales. With growth opportunities across various markets, be it
mouthwash or baby care all show trends towards increase in the near future. These are
the opportunities that will help it reach greater heights and increase its brand value as
well as profits. The major focus should be on maintaining a proper marketing mix that
depicts these changing trends.

Social Factors:
Nirma believes in a holistic product. It believes that its consumers interact with the
product, package, and how they feel about the brand, how they experience it in the
store or online, and whether it truly creates value for them versus the alternatives he or
she has to choose from. These factors need to be considered in order to obtain a
positive category growth and build competitive advantage. With changing trends people
are looking for better quality/high quality products at affordable rates. It has been
awarded the best company in terms of social inclusion and gender inclusion. With its
policies treating all genders equally, It has made a mark in this segment. Most of the
edible products are needed to be healthy for the consumer and thus these changing
trends provide an opportunity for the company to mix and match or create newer and
better products thus helping the society grow and make life easier.

Technological Factors:
Nirma relies on technology for both its operations as well as marketing and consumer
sales. With increase in online market, the need for analytics to be implemented through
its system is justified. Using this system, it has been able to optimize distribution,
merchandising, shelf sets, targeted sampling and marketing. With being able to analyze
the changing trends, It can focus on products that sell more and generate majority of its
revenue. ‘Reduced complexity in its operations’ is what the company believes in. In
order to deliver better products in lesser time, the company has opened its first smart
lab dedicated solely to research and development. Keeping a tab on changing
technologies in the automobile industry is important. Only through implementation of
latest technology can fuel efficiency be achieved.

Legal Factors:
With increasing regulations related to health and hygiene of the consumer-based
products, It has an opportunity of increasing its internal standards to provide superior
quality. With superior standards It can claim its products to be superior to its competitors
thus expanding its market. All its plants are subject to emission limits set by the various
countries, and any issues related to any of the compliances will lead to major lawsuits
which might tarnish its brand name. Avoiding lawsuits is a major concern for a company
of this scale. It also faces situations where its patents have been infringed. Recent
example was Unilever’s Dollar shave lawsuit that was settled by the giant. Keeping a
tab on all such events is important to avoid market share loss.

Environmental Factors:
With Nirma being able to satisfy majority of its customers across various countries, it
also feels the need to satisfy a sustainable development of the company in these
countries. Based on the United Nations sustainability development goals, It has
established certain goals for itself wit set deadlines. Their first ambition is to shift to
100% renewable energy sources and reduce the GHG emissions.
Their second ambition involves utilizing water efficiently across all its processes. They
wish to establish a cyclical process for all their products, such that waste generated is
minimal. In order to do so, It along with Teracycle and SEUZ created the first recyclable
shampoo bottle from beach plastic. A majority of its packaging material is now
recyclable, and their target is to 100% recyclable with packaging material by 2030. It
created history when they launched Tide Pureclean, which is 65% biobased and is
made in a plant that produces zero waste. In fact, even the packaging material used for
the product is 100% recyclable. They believe in responsible sourcing especially in the
case of wood based raw materials.
 CHAPTER - 4
SWOT ANALYSIS

What is swot analysis?

SWOT stands for strengths, weaknesses, opportunities and threats. It is a tool for assessing
where the organization is doing best, where are the failures or where is the organization lacking,
the opportunities and threats of the organization.
SWOT Analysis of Nirma 
For Nirma, SWOT analysis can help the brand focus on building upon its strengths and
opportunities while addressing its weaknesses as well as threats to improve its market position
Nirma Strengths
The strengths of Nirma Ltd looks at the key aspects of its business which gives it competitive
advantage in the market. Some important factors in a brand's strengths include its financial
position, experienced workforce, product uniqueness & intangible assets like brand value. Below
are the Strengths in the SWOT Analysis of Nirma Ltd :
1. Nirma has distribution at over 1 million retailers and approx 300 million consumers
2. Over 14000 employees work with Nirma
3. It has always practiced ‘value-for-money’ strategy targeting the huge Indian middle class
market
4. Nirma purchased Searles Valley Minerals Inc., thus making it among the top Soda Ash
manufacturer globally
5. Nirma has manufacturing facilities at 6 places in India
6. It has undertaken backward integration into the manufacture of Industrial Products like Soda
Ash, Fatty Acid, Glycerine, Sulphuric Acid, etc
 
 
Nirma Weaknesses
The weaknesses of a brand are certain aspects of its business that it can improve to increase its
position further. Certain weaknesses can be defined as attributes that the company is lacking or
in which the competitors are better. Here are the weaknesses in the Nirma Ltd SWOT Analysis:
1. Market share is limited due to the presence of other strong FMCG brands
2. Nirma has a limited international presence as compared to other leading FMCG companies
 
Nirma Opportunities
The opportunities for any brand can include areas of improvement to increase its business. A
brand's opportunities can lie in geographic expansion, product improvements, better
communication etc. Following are the opportunities in Nirma  SWOT Analysis:
1. Tap rural markets and increase penetration in urban areas
2.Mergers and acquisitions to strengthen the brand
3.Increasing purchasing power of people thereby increasing demand
 
 
Nirma  Threats
The threats for any business can be factors which can negatively impact its business. Some
factors like increased competitor activity, changing government policies, alternate products or
services etc. can be threats. The threats in the SWOT Analysis of Nirma Ltd are as mentioned:
1. Intense and increasing competition amongst other FMCG companies
2.FDI in retail thereby allowing international brands
3. Competition from unbranded and local products

STRENGTHS  OPPORTUNITY 

 Nirma has distribution at over 1 million retailers  Tap rural markets and
and approx. 300 million consumers increase penetration in
 Over 14000 employees work with Nirma urban areas
 It has always practiced a ‘value-for-money’  . Mergers and acquisitions
strategy targeting the huge Indian middle-class to strengthen the brand
market  Increasing purchasing
 Nirma purchased Searles Valley Minerals Inc., power of people thereby
thus making it among the top Soda Ash increasing demand
manufacturer globally
 Nirma has manufacturing facilities at 6 places in
India
 It has undertaken backward integration into
manufacture of Industrial Products like Soda
Ash, Fatty Acid, Glycerine, Sulphuric Acid etc.

WEAKNESS THREATS 

 Market share is limited due to presence of other  Intense and increasing

strong FMCG brands competition amongst other
 Nirma has limited international presence as FMCG companies
compared to other leading FMCG companies  FDI in retail thereby
allowing international
brands
 Competition from
 unbranded and local
products

                                         
 CHAPTER -5

LATEST NEWS OR
ANNOUNCEMENTS

The main news of the Nirma company is that it is suffering from major losses and is out of the
market .
While other detergent brands went viral and all-out with their unique advertisement campaigns
and diversified product offerings, Nirma continued to follow the same campaign and did not
innovate. Most multinationals and local players in this segment have centered their messaging
around visibility, viability, and affordability. But Nirma’s focus has always largely been on
affordability. The brand has also not increased its prices since long despite the increase in prices
of Linear Alkyl Benzene, a key ingredient used in manufacturing detergents and palm oil
(another key ingredient used in the manufacturing of soap).
he rivals brands have products across all price ranges to mitigate the input cost effect, but Nirma
is available in only one category—value for money. This has proved disadvantageous for the
brand. Consequently, the brand is now grappling with a shrinking market share in its core
business. The company’s stock price and profitability have been on the decline since April 2006.
Some of the major reasons for its downfall are:

1. Lack of innovation – There has been little to no improvement and innovation in the product
lines of Nirma. This stemmed from a sense of complacency of being the market leader and
failure to observe the market environment around.
2. Consumer Perception – Consumers began to perceive Nirma as an inferior brand due to its
low price. This could also be attributed to the premiumization of the detergent segment by other
FMCG giants such as HUL and P&G.
3. Lack of Focus - Except for the initial years, Nirma, as a brand failed to understand what they
are good at and where their core competence lied. Venturing into other segments proved costly
for the company.

The major challenge for Nirma now is to penetrate the premium segment of the
detergent market, while maintaining a strong presence in the low-end segment. A few
cosmetic changes in brand imagery could possibly make it more relevant. Nirma has a
market share of around 10.4 percent, according to market estimates, which is far from
the days when it scripted the quintessential underdog win.