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Journalism of Courage
With a thrust on new launches, sales promotion and distribution efforts, Nirma Ltd have shown extreme consistency in maintaining its growth, which even by conservative estimates is quite impressive. Acknowledged as one of India8217;s best on cost management, Nirma has excellent operating margins. On the marketing front as well it has displayed tremendous grit, especially in the toilet soap market where HLL has established its stronghold. In fact, within five years of its launch, Nirma8217;s toilet soap tonnage equalled 15 per cent of the market, second only to HLL8217;s monopolistic 65 per cent. This is remarkable considering how most of the other brands have actually lost market share to HLL. The success of Nirma can, without any doubt be credited to the unpretentious Karsanbhai Patel. Armed with very little except for his exceptional business acumen this David dared to take on the multinational Goliath, HLL. And though it will be difficult for anyone to fit into his shoes, the new order, however, is gradually making an impact with its innovative ideas. The mantle at Nirma is likely to be passed on to Hiren Patel. Patel junior happens to be the current CMD of Nirma Consumer Care Ltd. But whoever may be at the helm at Nirma, Karsanbhai8217;s credo of selling high-value products at the lowest price is unlikely to be discontinued. Hiren Patel8217;s emphasis has also been on cost reduction while maintaining volumes. Exploring rural and other potential markets, he has helped push Nirma8217;s volumes. What8217;s more, BDR and BSF not withstanding the company has made an impressive inroad into Bangladeshi market. Nepal and parts of Africa have also been regularly buyers of Nirma products. In another cost reduction exercise Patel recently ventured into in-house printing and packaging, with the acquisition of Kisan Industries. The addition to profits due to this latest acquisition will apparently be around Rs 300 million. Meanwhile, the company has quietly entered a new area 8211; that of food retailing. In fact, Patel has already launched a retail supermarket under the brand Radhe in Ahmedabad. The response that the mall receives will eventually decide whether the Patels will strengthen their hold in this segment or stick to detergents. But at the moment it seems like Patel8217;s plans are not merely about soap bubbles after all.
Soaring High
Dilip Cherian, runs a public affairs firm Perfect Relations. He is an economy watcher and tycoon tracker. None of the people he writes about are his clients. Your insider tales are welcome at dilipcheriannow-india.net.in
