Those who grew up in the 90s and 2000s are familiar with the Jingle ‘WASHING POWDER NIRMA…’ as it was one of the leading advertisements played on Television those days. Even in the 2020s, Nirma washing powder has a considerable market share of 20% in the detergent industry. Besides being a household name in the detergent industry, Nirma also has its hands on multiple verticals including Cement manufacturing, cosmetics and more.

The story of Nirma is no less than inspiring. What began as a small manufacturing unit in the backyard of a small house has now become one of the largest business models in the country. The company boasts of an annual turnover of around 2500 crore rupees as of 2022.

The beginning of Washing Powder Nirma

The story began in 1969 when Karshanbhai Patel, a junior chemist in a government lab, started a small business manufacturing washing powder. He named it ‘Nirma’ after his late daughter Nirupama, who tragically passed away in a car accident. The manufacturing unit was modest, and his first customers were neighbors and residents of Ahmedabad, Gujarat, where he lived.

He used to pedal his bicycle between his home and office during those days and got involved in the business in his spare time after office hours. Mr Patel quoted that he was able to sell only 15-20 packets a day during his initial days. The product got a decent reception in the subsequent days and months as it slowly gained popularity.

What Made ‘Nirma Washing Powder’ Stand Out?

in 1969 detergent powders weren’t as prevalent and the ones that were present were costly. To be precise, in order to purchase a kilogram of washing powder people had to spend 13-15 rupees which was quite expensive on any scale. Most people could not afford to purchase washing powder solely due to this reason.

It was during this time that Mr Karshanbai Patel came up with the idea of a highly affordable detergent powder which the Nirma is. He priced it at just 3 rupees per kilogram, making it the most affordable detergent on the market and helping Nirma stand out from the competition.

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Gaining popularity and expansion

Affordability combined with the quality of Nirma washing powder gained plenty of new customers. Karshanbai Patel didn’t have to spend a single penny on marketing in the months that followed as the popularity of the product was on an uptrend through word of mouth.

It was during this time that the founder gave thought to expand his business to other parts of the state and later other parts of the country.

Marketing Strategy and Nationwide Reach

It wasn’t well-organized until the 1980s when it was established as a company and expanded nationwide.

• Nirma aimed to reach every corner of the country, becoming a household name by 1985. It recruited teams to connect with millions of shops and advertised extensively through TV commercials.

• The reception was overwhelming as the competitors had failed to focus on the affordability factor. Millions across the country loved Nirma washing powder and the company was on the path to profit. However, the company didn’t expect a factor which would hamper its growth towards success.

The Hard Times: Financial Losses

• Washing Powder Nirma was incurring an unbearable loss.Although the reception was strong and the company was on track to surpass competitors, unexpected backlash forced it to rethink its customer acquisition strategy.

• The resellers and shop owners that purchased the washing powder on credit weren’t willing to pay back when it was the time to do so. The company had a hard time convincing and collecting the money back. Because of this reason Nirma experienced an unbearable loss which somehow had to be repaired.

• Karshanbai Patel came up with an unmatching strategy which turned out to be extremely successful

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The strategy to bring the company back to life

• Nirma decided to collect all its products circulating in the market back to its godown. Shopkeepers and resellers were asked to return the product as they had failed to make payment in time. They had no choice!

• Now the company kept running its ads on print and visual media which made its presence felt everywhere. However, when people started asking for the product in shops, it was unavailable because it had been collected and stored in Nirma’s warehouses!

• The resellers and shopkeepers never imagined the upcoming demand for Nirma washing powder! It was overwhelming and they just failed to meet the demands. Now they had been strategically forced to knock on the doors of Nirma.

However, now the company has set a strict set of rules to sell products on credit and almost everyone had to pay upfront to get the product for their shop.

The expansion to different verticals

Over the decades Nirma expanded its business to various other verticals and other countries worldwide.

Currently, the company has products ranging from detergents, soaps, cement, cosmetics, salt, soda ash, LAB and injectables. It was also successful in acquiring a handful of companies from around the worldWhat can you learn as an aspiring businessman from the story of Nirma washing powder?You can learn multiple things from the story of Nirma washing powder. It isn’t bad to start a business from a humble place and capital. In fact, Nirma washing powder started its manufacturing in a 10X10 room which is very tiny by any standard.

Another important lesson that comes from the business is that you must have proven strategies to acquire customers. More importantly, the quality of the products and services you offer should be of great concern. The more quality stuff you provide the more organic customers you can expect.

When it comes to matters related to money you should be extremely strict if you are confident that your product is of top quality!