Karsanbhai Patel’s innovative marketing strategies pulled the rug from under the multinationals.
Karsanbhai Khodidas Patel, founder of the Rs 3,550 crore Nirma group — maker of detergents, soaps, cosmetics and salt — epitomises the proverbial rags-to-riches journey.
Born in 1945, into a north Gujarat family of farmers, Karsanbhai finished his BSc in chemistry and became a lab technician in the New Cotton Mills, Ahmedabad, and later worked with the Gujarat government’s geology department. In 1969, at age 24, Karsanbhai started manufacturing phosphate-free detergent powder (named Nirma after his daughter Nirupama) in his backyard. He continued with his day job, and sold the detergent while cycling to work.
The handmade detergent packets were sold at Rs 3 per kg, which was one-third the price of the cheapest popular detergent of the day. Consumers now had a quality detergent powder that was affordable. Patel also gave a money-back guarantee on every pack sold. A little while later, he also set up shop in Ahmedabad and with the right marketing practices like housewife-friendly advertisement jingles, Nirma took leading multinationals by surprise and quickly established itself in Gujarat and Maharashtra.
What started as a one-man operation in 1969 created a whole new segment in the Indian domestic detergent market, with one of the most recognisable Indian brands becoming Sabki Pasand Nirma. Nirma focused on cost reduction strategies to make a place for itself in the market.
In the 1980s Nirma took on the might of Hindustan Lever (now Hindustan Unilever) and moved ahead of Surf to caputre a large market share. In fact, Nirma’s success is also known to have forced Unilever and Procter & Gamble to launch cheaper clones. After establishing its leadership in economy detergents, Nirma entered the premium segment, launching toilet soaps, Nirma beauty soap and Shuddh Salt.
In 1995 Patel founded the Nirma University of Science & Technology, Ahmedabad. Over the last decade, he has turned his attention to the growing challenges in the educational sector. Patel believes that “Higher education stands for humanism and for adventure of ideas through constant research. If these functions are performed well, then it is well with the nation and the people.”
In 2004, the Nirma group expanded into pharmaceuticals by acquiring an IV fluid factory in Ahmedabad. It also acquired US-based Searles Valley Minerals to become one of the top producers of soda ash in the world.
Karsanbhai now plays the role of elder statesman at the group, his two sons having taken over day-to-daymanagement. Rakesh oversees procurement and logistics, Hiren heads marketing and finance.
