Nirma Company Distributorship
Nirma: Nirma is a group of companies based in western India's city of Ahmedabad that manufactures cosmetics, soaps, detergents, salt, soda ash, LAB and injectables products. As a one - man operation, Karsanbhai Patel, a Gujarat entrepreneur and philanthropist, began Nirma.
Founder: Karsanbhai Patel
Headquarters: Ahmedabad
Founded: 1990
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Products:
- Consumer Products:
- Soaps
- Detergents
- Edible Salt
- Scouring Products
- 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
Channel Partners: Nirma Limited commercializes its products through its wholly - owned subsidiary Nirma Consumer Care Limited (NCCL), which was established in 1985. In turn, NCCL resells these products together with extensions under the umbrella brands "NIRMA" and "NIMA."
Nirma's distribution strength is based on a relationship of mutual reward and satisfaction.
The concept of a flat distribution network was pioneered by Nirma. With two parallel distribution networks, Nirma Consumer Care Limited operates. The NIRMA brand is marketed through the first network consisting of approximately 450 exclusive distributors. It is one of the country's lowest - cost FMCG distribution channels.
How to Get Distributorship Of Nirma Products -
Nirma Products Principal Channel:
Lowest Cost system in India
Speed in distribution
Flexibility
The NIMA product range is marketed via a parallel marketing network consisting of over 2000 distributors.
Nima Products Parallel Channel:
Wider Reach.
Speedy Market Intelligence.
Competitive edge & Better focus.
Complementing Principal Channel.
How To Take Distributorship of Nirma Brand -
All product ranges from NIRMA and NIMA have a retail reach of more than two million retail outlets and over 40 million loyal consumers spread across the country. Through the two distribution channels, the company has been successful in establishing an extremely good urban and rural presence. The channels of distribution played a major role in making Nirma a household name. The efficient network has turned Nirma Washing Powder and Nirma Detergent Cake into the most penetrating brands on the market in the respective product categories. The network is well equipped across the country to meet the demands of the company's loyal consumers.
The robust network ensures that different products are available throughout the nation at different retail outlets. The distribution channel is designed to enhance trade relations, build the retailer base by providing various benefits and incentives, organize and implement various activities to generate sales and manage numerous other business development - focused programs, schemes and activities.
Distributorship of Nirma Products -
NIRMA Marketing & Distribution Network : Nirma's wholly - owned subsidiary NCCL, which operates two parallel distribution networks, sells the umbrella brands namely ' NIRMA ' and ' NIMA ' along with their extension products. The main channel distributes the brand ' NIRMA ' through 450 distributors and the Parallel channel distributes the brand ' NIMA ' with almost 2000 distributors in India.
Nirma's performance in the 1980s was labeled as an era's ' Marketing Miracle. ' These two brands have a retail reach of two million retail outlets and spread across the country over 40 million loyal consumers. Through the two distribution channels, the company was successful in establishing an extremely good urban and rural presence. The channels of distribution played a major role in making Nirma a household name.
The efficient network has made ' Nirma washing powder and Nirma detergent cake, ' the most penetrating brands on the market in the respective product categories. The robust network ensures that different products are available throughout the nation at different retail outlets.
The distribution channel is designed to enhance business relationships, build the retailer base by providing various benefits and incentives, organize and implement various activities to generate sales and manage numerous other business development - focused schemes and activities.
Nirma's persistent effort has been made to make consumer products at an affordable price available to masses. To leverage this effort, Nirma has embarked on massive backward integration along with manufacturing facilities expansion and modernization.
The focus of the modernization plan is to upgrade with resource - savvy technology in order to optimize capacity. Nirma's six manufacturing facilities located in different locations and well equipped with state - of - the - art technologies. Nirma had opted for backward integration strategies to ensure regular supply of major raw materials. These strategic movements allowed Nirma to manage the supply chain efficiently and effectively. Distinct market vision and robust infrastructure made cost leadership possible for Nirma.
In addition, lean distribution network, umbrella branding and low - profile media promotions made it possible to offer quality products at reasonable prices. Nirma literally captured market share by offering four P's value - based marketing mix, i.e. a perfect match between product, price, location and promotion. It has been a break in the detergent market for MNCs since two years (2008 - 10).
MARKET IN INDIA FMCG & DETERGENT -
India's economic size is GDP's 11th largest economy in the world, and purchasing power parity (PPP) fourth largest has a strong middle - class population base of 300 million. Continuing policy of economic liberalization moved the country to a market - based economy after 1991.
This momentum of growth stimulates the economy by changing its path from farming to service sector. According to the 2009-10 Indian Economic Survey, the service sector accounts for 57.2% of the country's GDP, which is a major component, while the industrial and agricultural sectors contribute 28% and 14.6% respectively.
With a total market size of $ 13.1 billion, FMCG is the fourth largest sector in the Indian economy and creates jobs for over three million people in downstream activities. The sector accounts for 2.15% of GDP and is expected to grow by 10-12% annually.Figure 2 shows the growth rate in the FMCG sector in terms of country GDP growth rate and inflation rate between 2006 and 2010. This can be proof of the design of strategic corporate actions for Nirma Ltd.
The FMCG sector plays a vital role in the country's growth and development by making efforts to reach maximum consumers by distributing smaller package sizes, innovations such as single - use sachets, developing innovative products to meet regional or local tastes, and niche consumers ' needs. It has overcome a slow growth slump to grow at 12-15% in a couple of years ago, and is expected to grow at a CAGR of around 12% to reach a size of Rs. 206000 crore ($43 billion) by 2013 and Rs. 355000 crore ($74 billion) by 2018. In India, there are approximately 12 - 13 million retail stores, 9 million of which are FMCG kirana stores.
For the 2009 FMCG sector in India, product and category wise sales breakdown (FICCI Technopark - FMCG Report, 2009). This picture provides an inherent case analysis strategy with regard to products exclusively for personal and home care. The strength of the sector is low operating costs, the presence in both urban and rural areas of well - established distribution networks. Other side is less scope for investing in upgrading technology and low promotion of exports.
Detergent Distributorship Market in India -
HLL and Swastik were the first company to produce detergents in India. During 1956 - 58, the HLL test marketed Surf and started manufacturing in 1959. Swastik launched Det, a 1957 white powder detergent. By 1960, in eastern India, Det had made rapid inroads. Surf, a blue detergent powder, became the dominant national market leader in western, northern, and southern parts of India. With a share of nearly 70 %, HLL dominated the market compared to Det's 25 %.
Another player came into the fray in 1966. The detergent powder ' Magic ' was launched by Tata Oil Mills Company (TOMCO). In 1973, TOMCO introduced the low - priced segment of ' Tata's Tej. ' In 1977, TOMCO unveiled another detergent economy powder called OK. Then next Nirma came into the picture with very low priced generic strategy of detergent war by avoiding the existing competition.
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