Mr. K. K.

PATEL - A PROFILE
He is the stuff that legends are made Journal, Discover Economic of. The The India Review Wall and have Street the all Economist,

featured him at some time or the other. His marketing expertise forms the basis for case studies at Business Schools. He is a marketing wizard, giant killer, humanitarian and entrepreneur par excellence. He is Mr. K. K. Patel the personae behind Nirma. A larger-than-life brand that has long since gone down in the annals of marketing history, Nirma has carved a niche of its own, among world-wide success stories. A story that begins at the grassroots and shoots up to the dizzying pinnacles of the corporate world. A heartwarming tale about the simple son of a humble farmer from Mehsana, who went on to rewrite the rules of marketing; a man who took on the multinationals on their own turf -- and won. -- the man, the myth,

THE BEGINNING The narrative is simple. At the fag end of the sixties, Mr. K. K. Patel, a 25 year old Lab Assistant from the Geology & Mining Dept. of the Government of Gujarat, started a small-scale business that offered a quality detergent powder, using indigenous technology, at a third of the prevailing price, without compromising on the product. The rest is history, and the product, named Nirma after his daughter, Nirupama, went on to occupy its place in the sun, amidst phenomenal market penetration, volumes and share. His detergent powder was made of an innovative formulation, which global detergent giants were at last compelled to copy. Additionally, his detergent was phosphate free and hence environment friendly and above all the process was labour intensive, which offered large scale employment. In a swift, single move, Mr. K. K. Patel had shattered the myth of economy at the cost of quality. Nirma went on to become one of the world's biggest brands in this segment, with its unique value for money USP.

A MAN OF SUBSTANCE A man of exemplary vision and extraordinary courage, Mr. K. K. Patel had his finger on the proverbial pulse of the people, from the very beginning. An astute strategist and a shrewd administrator, he had an uncanny knowledge of all spheres of business - from manufacturing to marketing, from administration to advertising. (Nirma was also one of the first major advertisers on the National Network, a fact borne by its jingle, which still generates instant recall). Mr. K. K. Patel built the brand, Nirma, from strength to strength and, in the process, pioneered rural marketing in India, as well. The result was one of the most comprehensive and wide-spread distribution networks the country had seen for a product of this kind; reaching into the very heart of India. Housewives swore by it, retailers stocked it, unfailingly, and brand loyalty built up. Nirma had arrived and had truly become a household name, in every sense of the term.

SUCCESSFULLY DIVERSIFYING INTO PREMIUM BRANDS It was believed that Mr. K. K. Patel would stay successful only as long as he remained within the

confines of economy-priced detergents. Nothing could be farther from the truth. Nirmas foray into the premium brand segment, in cakes & detergents turned out to be a repeat success story. Armed with the belief of the convictions, Mr.K. K. Patel notched up one marketing conquest after another, with his magic touch, until : a) It ranked among India's top 20 most distributed brands; b) It became the most widely distributed brand among detergent powder & cakes; c) It built up a 30% market share in the premium detergent segment; d) It achieved a greater than 20% share, in less than two years, in the premium soaps market.

PROFITS & POSITION -- AT HOME AND ABROAD Today, Nirmas products are bought by over 250 million customers, through a wide network of 400 distributors and about a million retail outlets. Producing over 800,000 tonnes of detergent and over 80,000 tonnes of toilet soaps, annually, the Rs. 16 billion Nirma brand has literally pipped the MNCs at the post.

It ranks No. 2 in toilet soaps; but mainly, in just seven years of marketing soaps, Nirma sold more volumes than the others had in 25 years! In the international markets too, such as Bangladesh, Nirma has left behind both, Unilever and P&G. Nirma now also plans to export detergents to Russia and the middle east. MOVING FORWARD THROUGH BACKWARD INTEGRATION By manufacturing their own raw material, in the form of Linear Alkyl Benzene (LAB) and Soda ash, Nirma will be offering more value to its buyers. The Rs. 4.5 billion LAB manufacturing plant at Savli (the most modern in India and the second best in the world), was set up in minimum time and cost; once again showing astute management skills. The Rs.12.5 billion soda ash plant in Bhavnagar district will have its own captive power plant. Together, both plants will control 85% of the raw material cost. A lesser known fact about Nirma is its investment in the finest technology, unique in India. The toilet soaps plant is the most modern in India, and the second most advanced in the world. It also has the largest soap manufacturing facility in the country, under a single roof. A state-of-the-art packaging plant (another first in

Gujarat) will cater to a staggering 1.2 million polythene bags and 6 million wrappers, daily!

AWARDS & ACCOLADES It would be unusual for an industrialist to have achieved enormous success and not be recognized for it by his peers. Over the years, Mr. K. K. Patel has had various laurels heaped upon him by various bodies : 1) In recognition of his achievements, the Govt. of India has twice appointed him Chairman of the Development Council for Oils, Soaps & Detergents. 2) The Federation the Udyog Ratna. 3) He has been invited to be a member of the Indian Chamber of Commerce and Industry. 4) The Gujarat Chamber of Commerce has felicitated him as an Outstanding Industrialist of the Eighties. 5) He was the president of the Gujarat Detergent Manufacturers Association for several years, and was nominated as a member of the Bureau of Indian Standards Committee, for Soaps & Detergents. of Association of Small Scale

Industries of India, New Delhi, has awarded him with

6) The Gujarat Chamber of Commerce honoured him once again by presenting him " Gujarat Businessman Award -1998 ". Meanwhile praise has poured in from all quarters, including international publications. According to the Economist, September 10, 1988 : Rarely does a small manufacturer in a developing country take on a big multinational and win. Mr. K. K. Patel India, taking three-quarters of potential market from it. The Wall Street Journal, April 10,1989, says : His success is based on such fundamentals as cost-cutting, consistent quality and heavy advertising. Finally, the Asian Wall Street Journal, September 2, 1996, says He represents a generation of Indians who set up tiny businesses in the 1970s and 1980s, that rose to rival established brands. has done it in Lever's Hindustan

ECO-FRIENDLY & ENVIRONMENTALLY SAFE i) At the very outset, Nirma has been a phosphate-free detergent, making it eco-friendly.

ii) The LAB plant near Baroda is the most environmentfriendly one of its kind; consisting of a safe HF-free process. iii) A detergent by-product, Spent acid, is not released into the environment, but is used as raw material in the SSP fertilizer unit. iv) Extensive foliage covering can be found on all

campuses - plants, offices, institutes. At the Mandali complex, alone, 1,00,000 trees can be found on a 125 acre campus.

ON REPAYING SOCIETY'S DEBT Mr. K. K. Patel firmly believes that a person who has received a lot out of life needs to put something back. Subsequently, he has ongoingly endeavoured to pay back what he sees as his own debt to society. This has taken various forms over the years, including a number of agencies, bodies & causes. During the catastrophic three year drought in the eighties, Mr. K. K. Patel himself paid back the fifty lakh loan of the Sankat Nivaran Society, a drought-relief body, and personally assisted in collecting funds

amounting to Rs. 30 million for the existing as well as future calamities. When the Sardar Sarovar Project, often called the lifeline of Gujarat, appeared short of funds, he negotiated with the government, mooted & supported the project, funded a massive rally to boost morale and contributed a Rs. 60 million deposit for the financial scheme. Numerous other examples exist, be it the Nirma Memorial Trust that looks after deprived women in Gujarat, or the building of ashrams & guests houses for pilgrims & the elderly. The Nirma Foundation, set up in 1979, has donated millions, within the state & outside, for schools, colleges, temples & social institutions. The Ruppur Chanasma Gram Vikas Trust in Mehsana, of which Mr. K. K. Patel is the founder trustee & president, provides education, maintenance of public health and related facilities in rural areas. The trust has started several institutions in Ruppur, including an Arts & Commerce college, an ITI training institute and a ladies hostel.

FUNDING TEMPLES OF LEARNING

Being acutely aware of Gujarats lacunae in professional education, Mr. K. K. Patel committed himself to building fine seats of learning in a variety of disciplines. He established the Nirma Education & Research Foundation in 1994, the Nirma Institute of Technology in 95, the Nirma Institute of Management in 96 and the Nirma Institute of Diploma Studies in 97, for providing technology, government. Rs. 350 million have been committed for the higher education financial in management from & the without support

development for these institutes, a figure that is likely to rise further, to Rs. 500 million. The infrastructure facilities created here, rival the best, and the various schools have already become models for similar institutes. Due to its world class infrastructure and innovative approaches like signing an MOU with prestigious universities in America and Canada, Nirma Institute of Technology already ranks among the best in the country. Plans are afoot to start post-graduate and research courses in management and technology education, as well as an IAS cadre Training Centre and a programme in Master of Computer Applications.

SERVICE TO THE YEOMAN A man still close to his roots, Mr. K. K. Patel has his buyers interests at heart. Probably the best example of this has been his constant attempt at passing on all extra benefits to them (including the reduction in the cost of raw material, mentioned earlier). It is precisely this kind of concern for the consumer that has given Nirma a competitive edge over the rest.. Nirma has also been instrumental in controlling the market price. Besides putting Ahmedabad and Gujarat on the map, Mr. K. K.Patels concern for the labour force has been amazing. Amenities like free housing, electricity, transport, medical facilities etc. are provided to the 12,000 strong workforce, who unceasingly vouch their allegiance to the company. Under the circumstances, it is hardly surprising that Nirma hasn't lost a single day due to labour unrest, in all these years! Furthermore, all units have been set up in backward areas, thereby rendering employment and other benefits where they are needed the most.

THE MOST COVETED AWARD

Nirma has moved on from being a detergent company to a soaps & detergent company, to eventually become a full-fledged FMCG company operating in crossproduct categories across various segments. It plans to venture into salt and eventually food stuffs. However, regardless of the new product categories, there will always be certain things that will remain unchanged at Nirma - things that go deeper than mere profits. Among other things, Nirma will retain its value for money USP and its overall objective of giving the consumer what he wants. It is very likely that the successful state of affairs will continue, but for Mr. K. K. Patel, the best reward of all, as he often says, will continue to be the smile on the face of a satisfied buyer.

STORY
The Nirma story began in 1969, when Mr. K. K. Patel rolled out the first bag of phosphate free Synthetic Detergent Powder, signalling the launch of Nirma. And that first bag of Nirma was destined to change the Indian detergent industry hitherto dominated by multinational players offering high priced products to a small segment of the population. Within a short span of three decades, Nirma has completely rewritten the rules of the game. Offering high quality products at unbeatably low prices. In the process, Nirma has helped expand the entire soaps and detergents market to a level of Rs. 82 billion. Today, Nirma has a Rs.17 billion share in this market and has been acknowledged as a marketing miracle. This has been possible through it's focus on cost effectiveness by integrating latest technology manufacturing facilities with innovative marketing strategies to create world class brands. And at the same time not losing sight of it's social responsibilities.

INTRODUCTION TO NIRMA
Nirma is an over Rs. 17 billion brand with a leadership Soaps presence and in Detergents, Personal

Care Products, offering employment to over 15,000 people. The Brand was introduced by Mr. K. K. Patel in 1969. Making phosphate free synthetic detergent powder by hand and selling it at Rs. 3/- per kg., when the lowest priced detergent brand was Rs. 13/-. This value-for-money plank revolutionised the industry and made fabric wash detergents available to the masses. Today, Nirma sells over 800,000 tonnes of it's detergent products annually, giving it a 35% share of the Indian market, which is the world's second largest fabric wash products market. This makes Nirma India's largest detergent marketer and one of the world's biggest detergent brands. Even though Nirma was a late entrant in 1990 in the highly competitive toilet soaps market, it is already the second largest manufacturer, selling close to 1,06,000 MT of bathing soaps in 1999-00. The brand has over the years introduced products in toiletries and personal care with soaps, shampoos and toothpaste, thus offering the consumer a complete product portfolio. Carrying

on Nirma's mission of providing 'Better Products, Better Value, Better Living' to its over 300 million consumers through an efficient distribution network.

Nirma's products

philosophy at the

of

providing prices has

quality led to

best

investment in the latest technologies for our multi-locational manufacturing facilities, with full-scale integrated complexes at Mandali Mehsana, Ahmedabad, Baroda, Bhavnagar, Kanpur and Indore. To have a greater control on the quality and price of its raw materials, Nirma has undertaken backward integration into manufacture of Industrial Products like Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin Sulphonates (AOS), Fatty Acid, Glycerine and Sulphuric Acid.

Nirma's vision, based on it's Indian experience replicate it's and aided by a professional management team, is to leadership position internationally. Within the short span of a year, Nirma achieved commandable position in the leadership of detergent market in Bangladesh through it's joint venture there, M/s. Commerce Overseas Limited.

NIRMA LIMITED A PROFILE Nirma, the proverbial Rags to Riches saga of Dr. Karsanbhai Patel is a classic example of the success of Indian entrepreneurship in face of stiff competition. Starting as a one man operation in 1969, Nirma Ltd. is a company with a turnover in excess of Rs. 26 billion. The extensive size and diverse nature of the Indian market, coupled with the fact that Indias burgeoning class constituted the maximum number of consuming people. Nirma concentrated all its efforts towards building a strong market in this segment, way back in the 70s and 80s. Priced at an astonishing Rs. 3.00 per kg when the cheapest brands was Rs. 13.00 per kg, Nirma was the pioneer as far as dry mix value segment and STPP free detergents are concerned the process, packaging and marketing was a novel concept in India. The 80s saw the brand surging ahead of its nearest rival Hindustan Levers well established Surf took a severe battering as it recorded a sharp drop in its market share. Hence, Nirmas title of the Marketing Miracle of the 80s. Now, the year 2003 sees Nirmas annual sales touch close to 9,00,000 tonnes, making its volume sales with a single brand

name probably the highest in the world. Nirma stepped into toilet soaps relatively late in 1990 but this did not deter it to achive a volume of 1,00,000 tonnes per annum. This makes Nirma largest detergent and second largest toilet soap brand in India. Nirmas Strategy has always been to provide the consumer with Value for Money option. The Indian market scenario may be changing due to a virtual invasion by the various foreign brands, yet Nirma has been able to maintain its 38 % market share in detergent and 20 % in toilet soaps market. The companys two-pronged distribution network has

strength of over 2,400 distributors for its Nirma and Nirma range of products. All Nirma and Nima range of products have a retail presence of over 2 million retailers, adequately meeting the demand of about 400 million consumers all over the country. To meet the ever-increasing demand of its product in the market, Nirma has gone in for a massive expansion and modernisation of its plants. The modernisation plan focuses on upgradation of technology, energy saving, maximizing productivity, manpower. eco-friendly process and optimization of

THE INDIAN MARKET

The Soaps & Detergents Industry is characterised by a number of small scale manufacturers at one end of the spectrum and large MNC's at the other end.Like many other countries in the world, the Detergents market is dominated by two players with the rest being small or marginal players in the overall market. In India, as evident from pie chart, the Detergents market is dominated by market leader Nirma and Hindustan Lever. The market for Soaps & Detergents has increased manifold with changing lifestyles, growing purchasing power, increased awareness about personal hygiene, responsiveness of the consumer to brands offering superior value and the spread of audio-visual media. Fabric Wash Industry in India is characterised by ( like any other non-durable product category in India) low per capita consumption and substantial potential in

rural markets ( in terms of category penetration and per capita consumption). Per capita consumption of fabric wash products in India is just 3.2 Kg, which is very low compared to developed and some developing countries. Also, this consumption figure has to be viewed against the fact that India's Active Matter standards are one of the lowest in the world.

The Fabric Wash Industry is divided Synthetic into Laundry Soaps, & Detergent Cakes

Powder. The total production of Synthetic Detergents, Cakes & Bars in 1996 as per the Indian Soap & Toiletries Makers' Association, Mumbai (ISTMA) was 2.2 million tonnes, in which Nirma was the undisputed leader with a 35% volume based share of the market.

The Toilet Soaps Industry under Personal Care products is segmented into economy, popular and premium segments. The market is witness to fierce competition from MNC's and requires substantial efforts for market penetration and brand development, reflected by the fact that only 5% of total production comes from the small scale sector. As per ISTMA

figures, total toilet soap production in 1996 was 520,000 tonnes. Even though Nirma entered this market only as late as 1990 with Nirma Bath - a Carbolic Soap, we have today garnered a 18% share in volumes, making Nirma the second largest player. We have products in all the segments viz. Nirma Bath, Nirma Beauty Soap which is already the third largest soap brand, Nirma Premium and Nirma Lime Fresh and Nirma Shikakai soap.

Now, sees sales

the

year

2003 annual to

Nirmas touch

close

9,00,000 with name a single

tonnes, brand the

making its volume sales probably

highest in the world. Nirma stepped into toilet soaps relatively late in 1990 but this did not deter it to achive a volume of 1,00,000 tonnes per annum. This makes Nirma largest detergent and second largest toilet soap brand in India. Nirmas Strategy has always been to provide the consumer with Value for Money option. The Indian market scenario may be changing due to a virtual invasion by the various

foreign brands, yet Nirma has been able to maintain its 38 % market share in detergent and 20 % in toilet soaps market.

BRANDS OF NIRMA

Nirma is aptly considered as a marketing miracle has and and this is reflected in the strength of the brand. Nirma challenged successfully changed the

conventions of detergents marketing and today leading business schools are analysing it's strategies to demystify this miracle. Nirma's core marketing thrust revolves around prompting consumer trials by offering a good quality product at most competitive price and retaining these new consumers by continuously offering the same 'Value For Money' equation. This is borne by the fact that today Nirma can boast of a strong brand loyalty from it's 400 million consumer base.

Nirma sells over 800,000

tonnes of detergent products

every year and commands a 35% share of the Indian detergent market, making it one of the world's biggest detergent penetration, brands. through The a brand country promotion wide efforts of are 400 complemented by Nirma's distribution reach and market network distributors and over 2 million retail outlets, making Nirma products available from the smallest rural village to the largest metro, in a continent sized country like India. Based on the pragmatic concept of 'Umbrella Branding', other Nirma has been increasingly Premium successful in extending it's brand equity to product categories like Detergents, Premium Toilet Soaps, Shampoos, Tooth pastes and Iodised Salt, thus opening new vistas to the field of Brand Building.

Nirma has followed up it's original marketing success in the economy segment of the detergent powder and cake market, with Nirma Super Cake and Nirma Super Powder in the premium segment. Nirma's entry into the soaps market was marked with the introduction of Nirma Bath, a carbolic soap, today an established brand in this segment. Close on the heels of this, was launched Nirma

Beauty Soap in three variants, which in a matter of a few years has become the third largest toilet soap brand in India. This encouraging market reception has been kept going with the launch of Nirma Premium and Nirma Lime Fresh. In fact, 17 million packs of Nirma Lime Fresh were sold in the very first month of its launch and that too without any advertising support. That's the power of the Nirma Brand.

Today Nirma has expanded into the personal care market with Nirma Shikakai, Nirma Beauty Shampoo and Nirma Toothpaste and into products like Iodised consumer Salt, with thus a providing more the complete

product portfolio

PRODUCT PORTFOLIO

Nirma is a Rs.17 billion umbrella brand offering consumers a broad portfolio of products at multiple price points in the Detergents, Soaps & Personal Care market. We also produce a range of industrial chemical products which primarily serve as raw material or intermediates for our Soaps & Detergents business.

PRODUCT LIST Detergent Powders:

Nirma Detergent Powder Super Nirma Detergent Powder Nirma Popular Detergent Powder Green Nirma Detergent Powder Nima Green Detergent Powder Nima Detergent Powder

Detergent Cakes:

Nirma Popular Detergent Cake Nirma Detergent Cake Super Nirma Detergent Cake Nima Green Detergent Cake Nima Blue Detergent Cake Nima Bartan Bar Nirma Clean

Bathing Soaps :

Nirma Beauty Soap Nirma Bath Soap (Carbolic) Nirma Premium Soap Nirma Lime Fresh Soap Nima Rose Nima Lime Nima Winner Nima Sandal Nima Rosee Nima Herbal NIrma Herbalina

Other Products :

Nirma Beauty Shampoo Nirma Shikakai Nirma Toothpaste

Iodized Nirma Free Flow Salt

Industrial Products :

Linear Alkyl Benzene Sulphuric Acid Glycerin Fatty Acids LAB Soda Ash Detergent Powders

Nirma Detergent Powder Nirma Detergent Powder was launched in 1969, by Mr. Karsanbhai Patel. The product created a loyal customer base that increased day by day. In 1982 Nirma Detergent selling Powder became the largest

detergent powder in western India and by 1989 the same was established on the national scene. The detergent when launched was priced one third that of the nearest competitor. The detergent powder was overnight converted into a common mans necessity from being a luxury of a few. The credit goes to the pioneer of this new environmental friendly technology, Mr. Karsanbhai Patel who lowered the usage barrier and started the Nirma phenomenon which took the world by storm. The brand was ranked most widely distributed detergent brand in India as per the AIMS retail audit. After a period of more than 20

years the poly packet for Nirma Detergent Powder was changed in 1998 to differentiate it from me too look alike'. The strategy seems to have worked as consumers have successfully identified the new pack as a genuine Nirma product. The product today is available in two pack sizes 500 grams and 1000 grams. This product created a marketing history when it was introduce for the first time in the Indian market in 1969. These were the times when the detergents were priced so exorbitantly that for most of the Indians, it was a luxury item. Nirma saw this vacuum and sensed a tremendous potential in the Indian Fabric Wash Market. This product was priced only a quarter of that of the competitors brand, resulting into instant trial by the consumers. Owing to its unique environment-friendly phosphate-free formulation, the consumers become loyal to this brand, helping it to overtake the decades old brands, in terms of volumes. This brand had been ranked as the Most widely distributed detergent powder brand in India as per All India Census of Retail Outlets carried out in 435 urban towns by the AIMS (Asian Information Marketing And Social) Research agency. This report was published in Brand Equity, The Economic Times dated 5-11 March 1997. Also, as per ORG-MARG Rural Consumer Panel (dated December 1998) survey, Nirma brand is ranked highest in terms of penetration in

washing powder category. (as published in ORG-MARG BT Rural Market Watch, Business Today dated June 22, 1999). Super Nirma Detergent Powder The Myth - High quality products are high priced. The Reality - Super Nirma high quality spray dried detergent was launched into market in 1996 with a price 40% lower than the nearest competitor offering the same quality. The Outcome - With in a short span of two years Nirma Super Detergent Powder cornered substantial market share in the premium detergent segment. The brand targeted towards Nirma consumers who were shifting towards more sophisticated form of washing, clicked very well as the ever dependable Nirma Brand name assured high quality at affordable prices. The powder is available in 25 grams, 500 grams and 1000 grams in polypacks. Exploding the myth that better quality always demands higher price, Nirma introduced a spray-dried blue coloured washing powder in the premium segment in 1994. Available in 25 gm, 500 gm, and 1000 gm, this is an excellent powder product, comparable in quality to competitor brands, but priced almost 40 % lesser, thus providing a very attractive

Value-for-money proposition. This brand, within a short span of two years, had cornered substantial market share in the premium detergent segment and continues to perform well. Nirma Popular Detergent Powder Nirma launched a flanking brand named Nirma Popular Powder in selected pockets where Detergent powder usage was limited or the me too brands were eating into Nirma's share. The product was a good product available at prices that would switch people to use branded powder. The substandard products took a severe beating in the pockets where Nirma Popular was launched. It is available in 500 grams and 1000 grams pack sizes. The product with similar name and slightly different formulation is being sold in the exports market successfully. Nima Green Detergent Powder Nima Green Powder introduced in Q4 - '99 is Nirma's introductions in a segment which was not addressed by Nirma till then. This powder positioned in the economy segment has lingering fresh lime perfume. It scores high on cleaning efficiency and generates a good amount of lather leaving clothes sparkling clean. This

powder is packed in multi-colour poly bag. This product is available in 500-grams and 1-kg packing and is sold exclusively through the efficient Nima distribution network.

Detergent Cakes Nirma Popular Detergent Cake The positioning of Nirma Popular

Detergent Cake is similar to that of Nirma Popular Detergent Powder but meant to fight other detergents cake. This product is more important as the unorganized players are far more penetrated in cake market as compared to that in the powder market. The product is available in 125 grams and 150 grams pack sizes.

Nirma Detergent Cake

Driving the inspiration from its success in Detergent powder market, Nirma expanded its product portfolio by introducing Nirma Detergent Cake in 1987. The brand soon became darling of the masses as it matched their perceived value money equation. The

cake was launched keeping in mind the washing habits of rural India where limited use of bucket and more so of running water added to the wastage of washing powder. The answer was brought by Nirma in form of Detergent Cake. The brand today is ranked as most distributed detergent cake brand in the country by AIMS retail audit. The product is available in two pack sizes of 125 grams and 250 grams. Deriving inspiration from its success in the Detergent Powder market, Nirma expanded its product portfolio by introducing the Nirma detergent cake in 1987. Here again, the excellent price-quality equation tempted the consumers to try the product. Available in 125 gram and 250 gram pack sizes, this brand has done excellently well. AIMS survey ranked Nirma detergent cake as The Most widely distributed detergent cake brand. Due to its unique formulation, this product offer benefits like less melting in water, lasts longer, etc. Also, as per the latest ORG-MARG Rural Consumer Panel (dated Decmeber 1998) survey, Nirma brand is ranked highest in terms of penetration in washing powder cakes/bars category. (as published in ORGMARG BT Rural Market Watch, Business Today dated June 22, 1999).

Super Nirma Detergent Cake To meet the consumer's growing aspirations and to allow consumers to upgrade to a better quality product, Nirma introduced Super Nirma Detergent Cake in 1990. As Nirma Detergent Cake is to Nirma Detergent Powder, Super Nirma Detergent Cake is to Super Nirma Detergent Powder. It was launched to woo back the Nirma Detergent Cake user who had shifted to the competitor's product. The cake has high detergency value at an affordable price. It is available in 125 grams and 250 grams sizes. Super Nirma Detergent Cake was ranked as the fasted Climber for the year 1997-98 in the detergent cakes/bar category (BUSINESS TODAY, October 22, 19998.) Nima Green Detergent Cake Launched in Q4 - '98, Nima Green Cake became a close no.2 in its segment within 3 months of its launch and was successful in arresting the growth of competition in this segment. This brand has seen a number of consumer promotion schemes tied with it. The splendid laminated multi-colour wrapper, which shows a slice of lemon and trishul, exemplifies razor-sharp dirt cutting

efficiency of this cake. This cake is rich in lime perfume and has an exceptionally high brand recall. It is available in sizes of 125 grams and 250 grams. Nima Blue Detergent Cake This product was introduced as a low cost alternative to the then available blue detergent cakes in Q4 - '99 in very few select states and has ever since been performing very satisfactorily. It is the epitome of Nirma's endeavour to provide better products at more competitive prices. It is available in 125 gram and 250 gram pack sizes. This cake is packed in a dark blue wrapper and has strong eye catching presence on the shelf. Nima Bartan Bar This product which was launched in Q1 - 2000, gives an outstanding performance is Nirma's foray into the scourer's market. The slogan "Darpan Hai Ya Bartan" in the product's TV commercial has helped immensely in conveying the message of " Bartan Bar's cleaning efficiency very quickly Nima across Bartan all Bar segments. as the Our TV commercial supports our positioning of one giving superior quality cleanliness and making

the utensils shiny and sparkling clean. Nima Bartan Bar is available in a 400 gram packing. Nirma Clean It was launched in Q2 - 2000 and is available in a 300 gram bar packing. The "Chak Chaka Chak" television commercial of 'Nirma Clean', showing a whole set of spotless, clean vessels in a kitchen sparkling with starlight, delineates the high cleaning quality of this scouring cake. It is targeted at the low end of the market. 'Clean' is expected to trigger conversion from the unbranded detergent powders and cakes. Nirma expects the scourers market to undergo dynamism with its introduction of two scourer cakes.

Bathing Soaps Nirma Bath Soap (Carbolic) Toilet soap market was dominated by few MNC's who could monopolistically growth of drive the prices. market The was toilet soap

tremendous in 90's and was expected to increase further. Nirma's brand equity in detergent market was very strong and was unanimously associated with value for money products. We saw no reason

why cannot this be extended to the personal care market. Nirma ventured into this market with Nirma Bath a carbolic soap to counter the largest selling soap from a MNC stable. The carbolic soap segment though a declining market saw a sudden burst of activity. Nirma Bath started gaining substantial volumes at the cost of he competitor's and India's largest selling brand. The pricing of the product was penetrative at a quality (TFM - 60%) which the competitor's could not match. The product is available in 75 grams and 150 grams pack sizes. Nirma Beauty Soap After targeting the largest selling toilet soap with Nirma Bath, now was the time to target the second largest selling toilet soap. Nirma after successful launch of Nirma Bath launched, Nirma Beauty. Nirma Beauty was a popular category soap which targeted the middle and lower middle class population of the country. The product had high TFM content of 70%, an excellent aroma and an advertisement with a touch of aspiration. The product became an instant success, and in no time became India's third largest selling toilet soap brand. The volumes came from the category shift as well as brand switching. The product is available in 100 grams and 150 grams pack pack sizes and three different perfume variants.

Recently company has changed its packaging and made it more contemporary by printing the wrappers on six color Cerruti machine from Italy thereby differentiating it from the me too look alike'. The brand today is growing very fast and is firmly moving towards the second position. Competitor's tried to copy the concept and the commercial but were not able to match the success of the brand. As it is said you cannot fool consumers when it comes to quality. Nirma Premium Soap For the first time in the history of FMCG there was an attempt to extend the value for money proposition to the premium segment. The concept was innovated by none other than Nirma. Nirma launched Nirma Premium Soap during 1996 in the premium soap category with 80% TFM, mild fragrance, three variants and a touch of class in its advertising. The brand targeted to match the changing Nirma consumer's profile in terms of aspiration, quality consciousness and image perception. The brand has started picking up volumes in the premium soap market which is characterized by large number of brands and cut throat competition. Nirma Premium has been able to differentiate itself in this cluttered market its unique packaging and exclusive advertisement.

Nirma Lime Fresh Soap Has any soap till date sold 17 million packs in the first month of the launch? Till Nirma Lime Fresh was launched No! Nirma Lime Fresh was launched in 1997 with absolutely no advertising support. The lime segment of the toilet soap market was growing at a sedate rate, prior to the launch of Nirma Lime Fresh. Launch of Nirma Lime Fresh saw the volumes of the segment grow at more than 10%. During the first year of the launch Nirma Lime Fresh over took the largest selling brand in the lime segment. The product is priced competitively with 80% TFM content and strong tingling lime fragrance. The commercial was aired during the later part of the year which saw the volume grow rapidly. The commercial shot at Maldives and Switzerland with a new and young face was equally liked by consumers. The successful launch was termed as the seventh best launch of the year 1997-98 by Business Standard. There in no looking back and today Nirma Lime Fresh is the undisputed market leader in the lime segment and is giving shivers to the competition. The product is available in 75 grams and 150 grams.

Nima Rose The remarkable and phenomenal market response received by Nima Rose soap within just two months of its launch has once again proved the merits of Nirma's commitment towards its consumers. Nima Rose soap has got an exceptionally fine perfume of rose that lingers around your body for a long time even after you bath. carved Due to high TFM(Totally Fatty Matter) content, it niche in its particular segment by achieving provides one of the nicest baths. This brand has already leadership position just within tow months of its launch. This brand is being supported by a very attractive

advertisement which is shot at exotic locations of South Africa. Nima Lime Nima Lime, the first product in the Nima range of products has a very high TFM content and was intorducted in Q2 - ' 98 when the astounding success of Nirma Lime Fresh Soap prompted competition to launch lime variants in the same price segments. Nirma is committed to the concept of umbrella

branding. We have reaped benefits of this strategy right from our inception till date. In the past, we have faced umpteen number of situations where the competition introduces special compaigns to draw away the consumer's attention from our core brands like Nirma Detergent Powder, Super Nirma Detergent Cake, Nirma Beauty Soap, Nirma Lime Fresh Soap, etc. The purpose was to lure away consumer attention from Nirma Lime Fresh Soap by temporarily modifying the product. We, at this point of time introduced a 'fighter brand' called Nima Lime to provide at shield to our core brand - in this case 'Nirma Lime Fresh Soap'. The success of Nima Lime has been the cornerstone in Nima brand growing into a full fledged business. Nima Sandal This soap was launched in Q2 - '99. Over a period of time, the Indian toilet soap market has fragmented and has seen the emergence of prominent segments such as Sandal, Rose, Jasmine, Body moistureisering soaps, Herbal etc. Nima Sandal is Nirma's offering in the ethnic sandal segment. With a rich and exotic perfume and and 80% TFM content, this toilet soap is available in a 100 gram packing. Nima Sandal is promoted by a TV commercial shot at exotic locales depicting the form of 21st Century Indian

woman. Early market indication promises this brand to be the future no.1 in this segment. Nima Herbal Nima Herbal is the emanation of Nirma's quality and caliber. Nima Herbal is ingrained with benefits that accrue from using various herbs, shrubs, medicinal palnts and various day-to-day commodities like sandal wood, lemon, turmeric, coconut, tulsi, neem etc. that are gifted to mankind by nature. Nima Herbal is the nature's legacy. It is reflection of Nirma's conviction of "Care For The nature's legacy. It is reflection of Nirma's conviction of "Care For The Consumers". It was launched in Q3, 2000 with a 78% TFM content in a 100 gram packing. Nirma Herbalina Nirma has invariably identified the nerve of the market and answered it at the proper time. We addressed the ayurvedic and medicated soap segment with Nirma Herbalina. Launched in Q3 - 2000 with a high TFM content, 'Herbalina' is Nirma's latest introduction in the range of toilet soaps. The natural commodities shown on the wrapper blend very well with the green colour of the eye-catching pack. Available in a 100 gram packing size, Nirma Herbalina is the

'Natural flow of freshness'. It is Nirma's yet another impression of 'Better Products, Better Value, Better Living'. Herbalina has an exceptional long-lasting, heart-capturing aroma.

Other Products Nirma Beauty Shampoo Indian shampoo market has been recently growing at a mind boggling rate. Nirma felt that this was only the beginning and the ultimate was yet to come. The per capita consumption of shampoo in India is as low as 65 ml in a category penetrated at a low of 35%. Nirma sensed an opportunity to expand the market and launched Nirma Beauty Shampoo in selected pockets of the country for test marketing. There is priced aggressively and is receiving a good response from the market,. The product is yet not launched on a full scale as we are trying to judge the markets' response and accordingly make adequate changes in the marketing mix. The shampoo is available in three variants - Normal, Dry and Oily hair. It is bound to repeat as the motive is to expand the size of the market rather than fight for competitor's share.

Nirma Shikakai Nirma was very strong amongst the middle class household which held its strong faith for Shikakai an ayurvedic herb having a loyal ethnic consumer base in India. Launching a Shikakai soap for hair care was an obvious synergy for Nirma.The product was used an entry strategy for the hair care market. The product is available in 100 grams pack size. Nirma Toothpaste Similar to Shampoo market the per capita consumption and penetration of toothpaste in India is 45 grams and 40% respectively. The oral care market currently estimated worth Rs. 12000 million and is growing at an estimated rate of 1012%. To make a significant presence across all FMCG categories and utilize the market growth in its own favour Nirma decided to leverage on its value for money brand equity and launched Nirma Toothpaste. Today toothpaste is in the seed marketing phase and we are waiting for the market during response blind to launch was it nationally.The highly on toothpaste tests ranked

freshness, foaming capacity, flavour and smoothness. These bundle of attributes are not available in any toothpaste with price at which Nirma is marketing. The product is available in 100 grams pack size in a flexible tube. Iodized Nirma Free Flow Salt The edible salt industry in India is unique in away that it is only 10% branded the rest constitute of unbranded loose salt. The per capita consumption is 6 kg though the point to ponder is the rate at which unbranded market will convert to the branded. Nirma has decided to become the driver of this growth. The salt market provides attractive avenues for Nirma as there are huge volumes and low branded salt penetration. Nirma salt has one of the best quality in terms iodine content of 30 ppm, free flow property, whiteness and saltiness. It is refined through a process which retains natural mineral content in balanced quantity. The moisture proof pack keeps Nirma Iodized Salt non sticky and fresh. The salt is available in 1 kg pack size.

Industrial Products Linear Alkyl Benzene Manufactured on the world's best Eco friendly, HF free UOP technology, Nirma's LAB has higher linearity resulting into better biodegradability. Also Nirma's LAB has higher suplhonability leading to efficient use of LAB. Capacity 75,000 tpa

Sulphuric Acid Glycerin Fatty Acids

125,000 tpa 4,500 tpa 90,000 tpa

PROJECTS

In the constant quest to provide a Better Product at a Better Price, Nirma had undertaken two major backward integration projects for manufacture of Soda Ash and Linear Alkyl Benzene (LAB). The backward integration projects form an integral part of Nirma's corporate policy and is based on the following rationale :

Soda Ash and LAB are basic raw materials for Detergents Entire capacities will be captively consumed leading to substantial reduction in Raw Material costs Ensures assured supply of desired quality raw material at controlled costs Comparative Cost Advantage

The Alindra Complex Location : District Vadodara, Gujarat

Technology : UOP - USA Capacities : * LAB 75,000 tpa * Not Detergent ascertainabl s e N. 65,000 tpa Paraffine Project completed at a total investment of Rs. 6.7 billion. Status of the Project : Commercial Production has started since last quarter of 1997. The Bhavnagar Complex Location : Kalatalav, District Bhavnagar, Gujarat. Technology : Akzo Nobel, Netherlands Capacities : * Soda Ash * Detergents 420,000 tpa Not Ascertainable 280,000 tpa 60,000 tpa

* Vacuum Salt * Toilet Soaps * Solar Salt 1,000,000 tpa (Industrial Salt) Total project investment of Rs. 10.00 billion Status of the Project : Commercial production of Soda Ash started since March-2000.

MANUFACTURING FACILITIES

Nirma has a geographically dispersed manufacturing base providing logistical advantages as well as enabling it to respond to emerging and untapped markets with more proactive, resulting dynamic in cost and close-to-the-customer time effectiveness. approach, Nirma's and

manufacturing facilities are located at:

Mandali, District Mehsana, Gujarat - This complex, spread over 50 hectares of land offers automated soaps Binacchi and and manufacture detergents. CMB is of The used,

latest Italian technology from giving capability of producing 500 toilet soaps per minute, wrapped ready for despatch.

The complex has facilities for producing Dry Mixed Detergent Powder, Detergent Cake and Spray dried Detergent under Detergent Products, Toilet Soaps, Carbolic Soaps, Speciality Soaps and Shampoos under Personal Care Products, and Sulphuric Acid, Oleum, Sulfonated Products, Distilled Fatty Acids, Refined Glycerine, Stearic Acids and Oxygen under Industrial Products. Mandali also houses a well equipped R&D laboratory for continuous innovation and upgradation of our soap and detergent products.

KISAN INDUSTRIES, Moraiya, District Ahmedabad, Gujarat - This complex on 60 hectares of land features the latest in printing and packaging. The packaging unit has a 8 colour printing machinery from Cerutti Spa of Italy and automatic registration control system from U.K. The plant facilities. Moraiya manufactures Dry Mixed Detergent Powder and Detergent Cake and also produces Single Super Phospate incorporates eco-friendly technology from Reifenhauser of Germany with complete waste recycling

fertiliser.

Alindra, District Vadodara, Gujarat - The Alindra Complex spread over 85 hectares, is set up at an estimated investment of Rs.4.56 billion. Alindra is an integrated project with a 80,000 tpa capacity to manufacture Linear Alkyl Benzene (LAB), a key raw material and 100,000 tpa of Synthetic Detergents. It is only the second plant of its kind in the world, using a HF free process, the other one being in Canada. Technology and basic engineering has been sourced from UOP Inter Americana of USA and project consultancy has been provided by SNC-Lavalin Group Inc. of Canada. The plant has already commenced commercial production. Kalatalav, Bhavnagar, Bhavnagar Gujarat Complex District The sprawls

over 10,000 hectares of land and with a project cost of Rs. 10.37 billion, is Nirma's single largest investment in recent times. The complex will manufacture Soda Ash, another key detergent ingredient,

with energy efficient technology from AKZO Nobel of Netherlands, which runs the world's largest soda ash plant. The integrated plant will have capacity to produce 420,000 tpa of light and dense Soda Ash, 60,000 tpa of Toilet Soaps, 280,000 of Vacuum Salt and 300,000 tpa of Synthetic Detergents. The entire complex is scheduled to go on stream in October 1999.

Chhatral, District Mehsana, Gujarat - The located on 15 hectares of land,

plant,

manufactures Dry Mixed Detergent Powder.

Trikampura,

District

Ahmedabad,

Gujarat - Dry Mixed Detergent Powder and Toothpaste is manufactured in this plant on 2 hectares of land.

Pithampur,

District

Dhar,

Madhya

Pradesh - has manufacturing facilities for Dry Mixed Detergent Powder and Detergent Cake on 10 hectares of land.

Jainpur, District Kanpur Dehat, Uttar

Pradesh - has 8 hectares of land for producing Dry Mixed Detergent Powder.

Nirma has a 6 MW Wind Power generation

facility in village Dhank, District Rajkot in

Gujarat. The power generated is wheeled to existing manufacturing units through the Gujarat State Electricity Board Grid.

HUMAN RESOURCES

We, Nirma, not only make better products but also infuse the values of which affect the perceived oriented characteristics the internal customer

environment of the organization.

By

values,

we

mean

empowerment,

equality,

security and opportunity. In Nirma, every employee has autonomy in the way he can plan, organize and carry out his work. Delegation is not confined only to the higher levels and there is adequate decentralization to the departmental level in all types of decision making. Equality, in our organization refers to integrity and honesty in all dealings between the staff and the organisation performance, i.e., setting and clear behavior standards at work of in attitude

rewarding performance. Equality of opportunities and access to promotion, training and development are absolute here. We tend to provide the highly rewarded value, security, both economic and emotional. Enough career advancement opportunities are also provided by us and thus they form our another contemporary value. Career paths are clearly laid down for employees and they are helped to become aware of the career opportunities diversification/ in the company. plans to Managers provide share career expansion

related information. Apart from these values, our management philosophy constitutes the management ethos of high order. People in our organization are more Action-goal oriented. They have a high sense of adequacy with clear goals about their future and are directed by these goals. Their proactive behavior has led our company to a position of one of the top business houses of India. Developing human resources is a continuous process at Nirma involving overseas training programmes, on-thejob orientation for the trainees, in- house computer education and personality development sessions. The belief is that all this makes an individual a better person which in turn leads to better productivity and a spirit of

accountability and commitment in each member of the Nirma family. In Nirma, the senior executives and top management are open to the employees even at the lower levels and are aware of their emotional and psychological problems. Also, employees here receive adequate information relating to their tasks through circulars, notices and meetings to enable them to plan and perform their jobs pays well. Apart to from through this, our the latest organization communication attention improving

infrastructure

technologies available in this area. Nirma hires only the best people in their respective fields, people with a capacity to take on the challenge of realizing the Nirma's vision. Proactive, dynamic professionals with the expertise of executing mega projects would integrate Nirma into a conglomerate by providing the best in technological advancements, right from product development to inventing new categories. So, if you subscribe to this philosophy, we may have the right career opportunity for you.

SOCIAL SERVICE

Nirma's vision visualises itself as a vibrant, pro-active and widely admired ethical corporate citizen. In fulfilment of this role as a responsible part of the society and environment in which one operates, Nirma has undertaken a host of activities in the educational and social development areas.

Nirma

Institute

of

Management in Ahmedabad is an initiative by Nirma Education and Research Foundation (NERF) for providing quality management education and supply industry with relevant managerial talent. The institute has an eminent faculty headed by Dr. Omprakash Gupta as Director. The institution offers a two year full time and a three year part time programme leading to a Post Graduate Diploma in Management (PGDM), equivalent to an MBA degree. Nirma Institute of Technology : affiliated with Gujarat University is located on a 40 hectare campus in the outskirts of Ahmedabad. The institute offers degree engineering courses Electrical. Nirma has already committed Rs. 350 million for the development of these institutes, an amount which is likely to rise further to Rs. 500 million. The infrastructure facilities created here are of international in Chemical, & Instrumentation & Control, and Electronics Communication, Mechanical

standards and they have already become models for similar institutes. Plans are underway to start Post Graduate & Research Courses in Management and Technology, as well as an IAS training center and a programme in Masters of Computer Applications.

Nirma Nirma deprived

Memorial

Trust

and

Foundation women in Gujarat. It

Nirma Memorial Trust looks after builds Ashrams and guest houses for pilgrims and the elderly. The Nirma Foundation, set up in 1979, contributes towards the running of schools, colleges, temples and social institutions, within the state and outside.

Chanasma Ruppur Gram Vikas Trust in Mehsana of which Mr. K. K. Patel is the founder trustee and President provides education, maintenance of public health and related facilities in rural areas. The trust has started several institutions in Ruppur, including the Arts & Commerce College, and an ITI training institute and a ladies hostel.

EXPORTS

After

establishing

leadership

in

the

vast

and

highly

competitive Indian market, Nirma has expanded it's vision to cater to markets abroad. The first foray has been into Bangladesh, where a joint venture entity under the name Commerce Overseas Limited has been set up. Nirma is in the process of commencing exports to newer regions like the Middle East, China, Russia, Africa and other Asian neighbours. To facilitate initiation of an export transaction click here for products currently being exported by Nirma and their FOB/CIF prices.

NIRMA Distribution at Work

350 Sales Force all over India 400 Distributors all over India Over 1 million Retailers 300 million Consumers

Nirma's efficient distribution network has given it the ability to tap even the is remotest villages This where gives modern Nirma a transportation reach not available. consumer

competitive edge in mass marketing through greater product and acceptance.

Effective distribution is critical for the success of any brand in the Indian FMCG market. The country has the world's 7th largest land area (3,287,000 sq. km.) and has over 600,000 villages and over 3,000 urban towns. This huge size coupled with the complex nature of retailing (there is at least 1 retail outlet per population of 380 - making India's retail index probably the lowest in the world, and hence necessitating a strong wholesale network) creates formidable entry barriers for any new entrant.

Nirma has to it's credit a strong and effective distribution network which has achieved:

Highest reach and penetration of Nirma's products in the retail universe

Nirma Detergent Powder & Nirma Detergent Cake are among India's top 20 Most Distributed brands and the Most Widely Distributed Brands in the Detergent Powder & Detergent Cake categories ahead of many MNC brands in respective categories

Source: Asia Information Marketing & Social (AIMS) Research.

FINANCIAL DEPARTMENT
PROFIT AND LOSS ANALYSIS INTODUCTION The Profit and loss account or the income statement is the report, which is of the greatest interest and importance to end users of accounting statements because it enables them to ascertain whether the business operations have been

profitable or not during that particular period. The important difference between the balance Sheet and the income statement is that the balance Sheet is on a particular date; while the income statement is for a period usually of full one year. The two broad categories of items shown in the income statements are revenues and expenses. Revenues are derived from a companys operation, say manufacturing and selling products. During transaction, business has also incurred revenues other than main business operations. Expensed are occurred in day-to-day transaction. It includes office and administrating expenses. By deducting total expenses from total revenue, we get profit and by deducting the revenue from total revenue, we get the loss.

PARTICULARS INCOME SALES OTHER INCOME INCREASE/DECREASE IN STOCK

199899 1472.9 5 23.15 6.44 1502.5 4

199900 1717.6 2 34.9 13.12 1765.6 4 925.99 24.53 262.45 31.41 136.66 55.7 1436.7 4 328.9 62.8 266.1 30.75

200001 2428.0 4 12.3 85.58 2525.9 2 1309.5 4 6.91 375.97 44.8 275.7 100.72 2113.6 4 412.28 140.3 271.98 23.1

200102 2276.0 5 18.39 -16.51 2277.9 3 1068.1 2.87 345.85 37.66 306.58 105.73 1866.7 9 411.14 122.09 289.05 21.8 87.88

200203 2416.35 23.96 -21.31 2419

EXPENDITURE CONSUMPTION OF RM PURCHASE OF FINISHED GOODS AND SEMI-FINISHED GOODS EXCISE DUTY PAYMENTS TO AND AND PROVISION FOR EMPLOYEES MANUFACTURING,ADMINISTRATION AND SELLING EXPENSE INTEREST AND CHARGES

831.36 61.21 221.12 29.64 106.29 30.43 1280.0 5

1157.12

365.8 41.03 339.16 55.91 1959.02

PROFIT BEFORE DEPRECIATION AND TAX LESS: PROVISION FOR DEPRECIATION PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS LESS: PROVISION FOR TAXATIONCURRENT -DEFF ERED : PRIOR PERIOD ADJ.(NET) PROFIT AFTER TAX

222.49 31.87 190.62 19.75

459.98 125.03 334.95 57.5 46.36 1.86 215.25

0.32 170.55

1.25 234.1

-0.83 249.71

0.81 184.56

LESS: TAXATION OF EARLY YEARS

0.06 170.49

204.1 3.25 237.35

249.71 1.81 251.52

ADD: EXCESS PROVISION OF TAXATION : BALANCE IN P&L ACCOUNT B/F 4.04 174.53

184.56 0.15 0.9 185.61

215.25 0.83 216.08

ANALYSIS OF PROFIT AND LOSS ACCOUNT

1. Income:

Income includes income from sale of goods

and from the sources like interest received, commission received, etc. It had a fluctuating trend from 1999-99 to 2002-03.
2. Expenditure: expenditure includes cost of goods sold,

office expenses, administrative expenses and selling expenses, etc. It also showed the fluctuating trend during 1998-99 to 2002-03.
3. Profit before Tax: When the expenditure is deducted

from income, the result is the profit before tax. It has shown the fluctuating trend during 1998-99 to 2002-03. 4. Profit after Tax: When the tax is deducted from profit before tax, the result is the profit after tax. It has shown the increasing trend during 1998-99 to 2002-03.

BALANCE SHEET ANALYSIS INTRODUCTION Balance Sheet shows the financial condition of a business. balance Sheet comes from the process of balancing the credit side balance as well as debit side balance of company. These balances are of personal and real accounting nature. This is the statement showing a position of business at the end of a particular time. Balance Sheet is defined as a tabular statement or summary of balances carried forward after an actual and constructive closing of bank accounts and kept according to the principles of account. Balance Sheet involves assets on one side with liabilities on the other side. Liabilities involve short term liabilities, which are paid within one year time, while long term liabilities include liabilities remain for more than one year. PARTICULARS SOURCES OF FUNDS Share holders` Fund Share Capital Reserves and Surplus 33.88 603.7 8 637.6 33.88 824.3 4 858.2 79.38 1225. 42 1304. 79.38 1168. 85 1248. 79.38 1348. 28 1427. 199899 199900 200001 200102 200203

6 Loan Funds Secured Loans Unsecured Loans 467.6 4 80.96 548.6 1186. 26 APPLICATION OF FUNDS Fixed Assets Gross Block - Depreciation Net Block + Capital W-I-P

2 482.3 4 682.2 3 1164. 57 2022. 79

8 373.6 9 727.8 3 1101. 52 2406. 79

23 752.1 26.56 778.6 6 2026. 89

66 450.0 1 143.8 3 593.8 4 2021. 5

594.8 1 107.4 4 487.3 7 487.7 4 975.1 1

1726. 13 170.1 2 1556. 01 319.5 4 1875. 55 2.21

2166. 78 309.1 8 1857. 6 44.48 1902. 08 2.37

2216. 35 430.4 2 1785. 93 93.48 1879. 41 2.03

2345. 81 552.4 9 1793. 32 43.61 1836. 93 2.03

Investments Current assets, loans and advances Inventories Sundry debtors

1.74

121.6 9 109.8

167.7 4 130.6

337.6 5 141.6

272.7 7 163.8

273.6 5 165.5

Cash and Bank Loans and Advances

4 37.13 173.9 1 441.7 7 221.0 8 11.28 209.4 1

9 11.91 177.9 488.2 4 339.0 7 4014 145.0 3

4 11.93 229.2 4 720.4 6 187.9 7 30.62 501.8 7

9 13.83 195.6 2 646.1 1 177.5 27.78 440.8 3 295.3 8 145.4

3 16.17 205.2 660.5 5 100.4 5 35.82 524.2 8 341.7 4 182.5 4 2021. 5

Less: Current liabilities Provisions Net Current assets Less: Deffered tax

1186.

2022.

2406. 32

5 2026. 89

26 79 ANALYSIS OF BALANCE SHEET 1. Funds employed:

Share Capital: It involves details of share capital, i.e., total sanctioned share capital, number of shares and par value. In 1998-99, the companys share capital was 33.88 cr. Rs., which increased in 2000-01 to 79.38 cr. Rs., i.e., 134.30%, which remains constant till 2002-03. Reserve and Surplus: This is the fund, which is kept in business for specific purposed. It involves general reserve, Dividend reserve, Provident fund and other

funds. Reserve and surplus of Nirma Limited showed an increasing trend fro 603.78 cr. Rs. In 1998-99 to 1348.28 cr. Rs. Loans: Loans include secured, unsecured loans. Secured loans involve the loans taken by mortgaging some kinds of assets like debenture. It shows the fluctuating trend during 1998-99 to 2002-03. Unsecured loan means loan taken from party without mortgaging any property or asset like public loans. It also shows a fluctuating trend from 1998-99 to 200203. Current liabilities: It indicates the expenses that are out standing at the end of the year like premium outstanding, interest outstanding, bills payable, creditors, etc. It shows the increasing trend during 1998-99 to 2002-03. Provisions: It involves different types of provisions for expected expenses so that business firm can face those expenses without any trouble like provision for depreciation, provision for taxation, etc. It shows the fluctuating trend in the balance sheet.

2. APPLICATION OF FUNDS

 Fixed Assets: assets Assets involve is

Fixed Assets are the assets, which Plant and Machinery, Land and

serve the company over a long period of time. Fixed Building, furniture and Fixtures. All the sum of fixed called gross block. The accumulated depreciation is deducted from Fixed Assets, which gives the net block. It shows fluctuating trend. Investments: Investments indicate the investment of the company in to different projects, schemes as well as projects and plans. It also showed the fluctuating trend. Current Assets: Current assets are those, which can be converted in to cash within short period of time. It involves inventory, debtors, cash and bank, rent receivables, etc. It also showed the fluctuating trend. It also involves loans and advances, which showed the fluctuating trend also.

CAPITAL STRUCTURE ANALYSIS

Capital structure is a very useful to the company. It is the most important part of the company. Capital Structure should be examined from the view point of its impact on the value of the firm. Capital structure decisions affect the total value of the firm, a firm should select such a financing-mix as will maximize the shareholders wealth. Capital structure is referred to as the optimum capital structure. The optimum capital structure may be defined as the capital structure or combination of debt and equity that leads to the maximum value of the firm. The importance of an appropriate capital structure is, thus, obvious. There is a view point that strongly supports the close relationship between leverage and value of a firm. There is an equally strongly body of opinion, which believes that financing-mix or the combination of debt and equity has no impact on the shareholders wealth and the decision on financing structure is irrelevant. Capital structure can affect the value of a company by affecting either its expected earning or the cost of equity or both. The capital structure decisions can influence the value

of

the

firm

through

the

earnings

available

to

the

shareholders.

Capital structure for the year 1998-99 (In cr. Rs.) Year Share capital 1998-99 33.88 Reserve and Surplus 603.78 Secured Loans 467.64 Unsecured Loans 80.96

19- 9 9 89 S aeC p l h r a ita 7 % 3% 9 3 % 5% 1 R s r ea d e ev n S r lu up s s c r dlo n e ue a s U s c r dL a s n e ue o n

The table and graph for the year 1998-99 shows the followings:

 The share capital of the company is 33.88 cr. Rs., which contains the 3% of the total capital employed. The Reserve and Surplus is 603.78 cr. Rs., which contains the 51% of the total capital employed approximately. The secured loan is 467.64 cr. Rs., which contains the 39% of the total capital employed approximately. The Unsecured Loan is 80.96 cr. Rs., which contains the 7% of the total capital employed approximately.

Capital structure for the year 1999-00 (In cr.Rs.) Year Share capital 1999-00 33.88 Reserves and Surplus 824.34 Secured Loans 482.34 Unsecured Loans 682.23

19- 0 9 90 S aeC p l h r a ita 3% 4 2 % 4% 0 2% 4 U s c r dL a s n e ue o n R s r ea d e ev n S r lu up s s c r dlo n e ue a s

The table and the graph for the year show the followings: The Share capital of the company is 33.88 cr. Rs., which contains employed. The Reserves and Surplus of the company is 824.34 cr. Rs., which contains approximately 40% of the total capital employed. The secured loan of the company is 482.34 cr. Rs., which contains approximately 24% of the total capital employed. The unsecured loan of the company is 682.23 cr. Rs., which contains approximately 34% of the total capital employed. approximately 2% of the total capital

Capital structure for the year 2000-01 ( In cr. Rs. )

Year

Share capital

Reserve and Surplus 1225.42

Secured Loans 373.69

Unsecured Loans 727.83

2000-01

79.38

20- 1 0 00 S aeCp l h r a ita 3% 0 3 % Rs r ea d e ev n S r lu up s 5% 1 1% 6 Us c r dL a s n e ue o n s c r dlo n e ue a s

The table and the graph for the company show the followings: The Share capital of the company is 79.38 cr. Rs., which contains employed. The reserve and Surplus of the company is 1225.42 cr. Rs., which contains approximately 51% of the total capital employed. The secured loan of the company is 373.69 cr. Rs., which contains approximately 16% of the total capital employed. approximately 3% of the total capital

 The Unsecured loan of the company is 727.83 cr. Rs., which contains approximately 30% of the total capital employed.

Capital structure for the year 2001-02 (In cr. Rs.) Year Share capital 2001-02 79.38 Reserve and Surplus 1168.85 Secured Loans 752.10 Unsecured Loans 26.56

20- 2 0 10 S aeCp l h r a ita 1 4 %% 3% 7 5% 8 Rs r ea d e ev n S r lu up s s c r dlo n e ue a s Us c r dL a s n e ue o n

The table and the graph of the year 2001-02 show the followings:

 The share capital of the company is 79.38 cr. Rs., which contains 4% of the total capital employed. The Reserve and Surplus of the company is 1168.85 cr. Rs., which contains 58% of the total capital employed. The Secured loan of the company is 752.10 cr. Rs., which contains 37% of the total capital employed. The Unsecured loan of the company is 26.56 cr. Rs., which contains 1% of the total capital employed. Capital structure for the year 2002-03 Year Share capital 2002-03 79.38 Reserve and Surplus 1348.28 Secured Loans 450.01 Unsecured Loans 143.83

2 0 -0 02 3 S aeC p l h r a ita 7 % 2% 2 6% 7 U s c re L a s neu d on 4 % R s rv a d ee e n S rp s u lu s c re lo n eu d as

The table and the graph for the year 2002-03 show the followings:

 The Share capital of the company is 79.38 cr. Rs., which contains 4% of the total capital employed. The Reserve and Surplus of the company is 1348.28 cr. Rs., which contains 67% of the total capital employed. The Secured loan of the company is 450.01 cr. Rs., which contains 22% of the total capital employed. The Unsecured loan of the company is 143.83 cr. Rs., which contains 7% of the total capital employed.

Capital Structure Highlights Share capital: 1998-99 1999-00 2000-01 2001-02 2002-03 3 2 3 4 4 33.88 33.88 79.38 79.38 79.38

Percentag e Net amount (In cr. Rs.)

As shown in the Table, in 1998-99 the share capital of the company contains only 3% of the total capital employed and 2% in the year 1999-00 with the net amount to 33.88 cr. Rs. But, in 2001-01, by issuing new shares, the companys share capital increases to 79.38 cr. Rs., with 3% part in the total capital employed. Reserve and Surplus: 1998-99 1999-00 2000-01 51 40 51 603.78 824.34 1225.42 2001-02 58 1168.85 2002-02 67 1348.28

Percentag e Net amount (in cr. Rs.)

As shown in the table, the company has 51% reserve and surplus with the total capital employed in the year 1998-99 with the net reserve and surplus of 603.78 cr. Rs. But, in 1999.-00, the companys reserves and surplus drops to 40% with the net amount of 824.34 cr. Rs. It means the company has taken more debts in the year 1999-00. But, fro 2000-01, the part of the companys reserve and surplus is increasing with the 67% part of the total capital employed in the year 2002-03 with net amount increases to 1348.28 cr. Rs. It means from the year 2000-01, the company has retained more profit and employed less debts in the capital structure.

Secured Loans: 1998-99 1999-00 2000-01 2001-02 2002-03 39 24 16 37 22 467.64 482.34 373.69 752.10 450.01

Percentag e Net amount (in cr. Rs.)

As shown in the table, the company has the highest percentage of secured loan is highest in the year 1998-99 and the lowest percentage is in 2002-01 with the 16% part in the total capital employed. It means the company has taken

the lowest amount of secured loans in the years 2000-01 with the net amount of 373.69 cr. Rs. Unsecured Loans: 1998-99 1999-00 2000-01 2001-02 2002-03 7 34 30 1 7 80.96 682.23 727.83 26.56 143.83

Percentag e Net amount (In cr. Rs.)

As shown in the above table, the company has the highest percentage of unsecured loans of 34% with the net amount of 682.23 cr. Rs., in the year 1999-00. But, the company has taken the lowest amount of unsecured loans of 26.56 cr. Rs., with the 1% part in the total capital employed.

RATIO ANALYSIS INTRODUCTION OF ANALYSIS: Financial statements, viz, the income statement or the Profit and loss account and the Balance Sheet are indicators of two significant factors, Profitability and Financial soundness. Analysis of statement means such a treatment of the information contain in the two statements as to allow a diagnosis of the profitability and the financial position of the firm concerned. We may define financial statement and analysis as the process of methodical classification, comparison, raising pertinent questions and then seeking answers for them. Analysis of financial statements should always be turn to the objective. People use financial statement for satisfying their particular need. A prospective shareholder would like to know whether the safety and reliability of return on his investment. The suppliers and the others who would like to transfer business with the concern may be interested in the companys ability to honor its short term commitments. Over and above all this, the management is interested in knowing the operational efficiency and financial position of the concern as the whole and of its various parts or departments different parties at the company from their respective points of view, but the objects generally look for are:

 Profitability Financial positions It can say that the objective of financial statement analysis is a cause and effect study of the financial and profitability position. Meaning of Ratio Analysis: The Ratio Analysis is one of the most powerful tools of financial analysis which is used as a device to analyse the ratios of financial statements. The use of ratio is not confine to financial managers only. There are different parties interested in ratio analysis for knowing the financial position of firm for different purposes. Types of Ratio: Turnover Ratio Liquidity ratio Profitability ratio Valuation ratio Finance Structure Ratio

(A) Turnover Ratio: These ratios are concerned with measuring the efficiency ratios or assets utilization ratios. Turnover ratio can also be defined as a test of the relationship between sales and the various assets of a firm. There are seven types of ratios in the turnover ratios. They are as follows: Total Asset Turnover ratio Net Fixed Assets Turnover Ratio Debtors Turnover Ratio Inventory Turnover Ratio Average age of Inventory Average age of debtors Total Asset Turnover ratio: The amounts invested in business are invested in all assets jointly and sales are affected through them to earn profits.

So in order to find out relation between net sales to Total Assets, fixed assets, current assets and investments are included in the total assets.

Total Assets Turnover Ratio = Net Sales Total assets YEAR 1998-99 1999-00 2000-01 2001-02 2002-03 CALCULATION 1472.95 1286.26 1717.62 2022.79 2428.04 2406.32 2276.05 2026.89 2416.35 2021.50 RATIO 1.24 0.85 1.01 1.12 1.20

Implications: The total asset turnover ratio shows the fluctuating trend from the year 1998-99 to 2002-03. The highest ratio is for the year 1998-99, it means that the company has utilized the assets the most efficiently.

total asset turnover

1.5 1 0.5 0 1998-99 1999-00 2000-01 2001-02 2002-03

year RATIO

Net Fixed assets turnover ratio =

Sales

Net fixed assets To ascertain the efficiency and profitability of business, total fixed assets are compared to sales. The more the sales in relation to the amount invested in fixed assets, the more efficient is the use of fixed assets. If the sales are less as compared to the investment on fixed assets, it means that fixed assets are not adequately utilized in business. YEAR 1998-99 1999-00 2000-01 2001-02 2002-03 CALCULATION 1472.95 975.11 1717.62 1875.55 2428.04 1902.08 2276.05 1879.41 2416.35 RATIO 1.51 0.92 1.28 1.21 1.32

1836.93
n t fix da s tstu n v r e e se r oe
2 1 .5 1 0 .5 0 1 9 -9 98 9 1 9 -0 99 0 2 0 -0 00 1 2 0 -0 01 2 2 0 -0 02 3

R TO AI

ya er

Implications: The net fixed assets turnover ratio shows the fluctuating trend during the year 1998-99 to 2002-03. In the year 199899, the companys ratio is the highest, it means that the company has utilized the fixed assets most efficiently in that year. Debtors turnover ratio = Sales

Avg. Debtors The debtors are created as when the credit sales are used as marketing tool along with the cash sale. The ratio shows the number of days taken to collect the dues of credit sale. It shows the efficiency or otherwise of the collection policy of the enterprise.

YEAR 1998-99 1999-00 2000-01 2001-02 2002-03

CALCULATION 1472.95 115.63 1717.62 119.87 2428.04 136.17 2276.05 152.77 2416.35 164.71

RATIO 12.74 14.33 17.83 14.90 14.67

debtors turnover
20 15 10 5 0 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO year

Implications: The debtors turnover ratio of the company is fluctuating during the year 1998-99 to 2002-03. The ratio is the highest for the year 2000-01, which means that there was the highest improvement in debt collection efficiency.

Inventory turnover ratio =

COGS

Avg. Inventory This ratio shows the number of times a companys inventory is turned into sales. Investment in inventory represents idle cash. The lesser the inventory, the greater the cash available for meeting operating needs. High inventory turnovers are indicative of efficient inventory management. YEAR 1998-99 1999-00 2000-01 2001-02 2002-03 CALCULATION 940.14 117.75 989.23 144.72 1317.89 252.70 1211.47 305.21 1383.14 273.21
Inventory turnover
10 8 6 4 2 0 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO 7.98 6.84 5.22 3.97 5.06

RATIO

year

Implications: The inventory turnover ratio shows the fluctuating trend during the year 1998-99 to 2002-03. The ratio is the highest for the year 1998-99, which means that the company has taken the largest time to turn the inventory into sales.

Average age of Inventory =

360 days

Inventory Turnover The average age of inventory shows the gap between the one inventory stock and the purchase of the second stock of an inventory. YEAR 1998-99 1999-00 2000-01 2001-02 2002-03 CALCULATION 360 7.98 360 6.84 360 5.22 360 3.97 360 5.06 RATIO 45.11 days 52.63 days 68.97 days 90.68 days 71.17 days

Implications: The year 1998-99 shows the lowest turnover, which means the company has frequent purchase of an inventory. While the year 2001-02 shows the highest turnover, which means the company has the lowest frequency rate in the purchase of an inventory.

Average age of debtors

100 80 60 40 20 0 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

year

Average Age of Debtors =

360 Debtor turnover

The average age of the debtors show the time period, which is given to the debtors to repay their debts. YEAR 19918-99 1999-00 2000-01 2001-02 CALCULATION 360 12.74 360 14.33 360 17.83 360 14.90 RATIO 28.26 days 25.12 days 20.19 days 24.16 days

2002-03

360 14.67
Average age of Debtors

24.54 days

30 20 10 0 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

year

Implications: The year 1998-99 shows the highest turnover, which means that the company has given the longest credit period to the debtors to pay their debts.

(B) Liquidity Ratio Liquidity ratio is very important for the company to make current obligation as and when they become due. Liquidity ratios measure the ability of the firm to make its current obligation. It establishes the relationship between cash and current assets to current liabilities. The different types of liquidity ratio are as follows: Current ratio Quick ratio Net working Capital Cash generated per rupee of sales Current Ratio = current assets Current Liabilities The current ratio is a widely used indicator of a companys ability to pay its debts in the short term. It shows the amount of current assets a company has per rupee of current liabilities. YEAR 1998-99 1999-00 2000-01 2001-02 2002-03 CALCULATION 267.83 221.08 310.34 339.07 491.22 187.87 450.49 177.50 455.35 RATIO 1.21 0.92 2.61 2.54 4.53

100.45
current ratio
5 4 3 2 1 0 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

year

Implications: The current ratio shows the fluctuating trend during the year 1998-99 to 2002-03. The company has the highest ratio in the year 2002-03, which means that the company the strongest ability to pay the debts in the short run.

Quick Ratio =

current assets Inventory Current liabilities BOD

All the assets are not equally liquid. While cash is readily available to make payments to suppliers and debtors can be quickly converted into cash, inventories are two steps away from conversion into cash. So, the quick ratio is computed as a supplement to the current ratio.

YEAR 1998-99 1999-00 2000-01 2001-02 2002-03

CALCULATION 146.14 221.08 142.6 339.07 153.37 187.97 177.72 177.50 181.7 100.45

RATIO 0.66 0.42 0.82 1.00 1.81

Quick ratio
2 1.5 1 0.5 0 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

year

Implications: The quick ratio also shows the fluctuating trend during the year 1998-99 to 2002-03. The highest ratio is for the year 2002-03, which means that the company has the strongest short-term debt-paying ability.

Net working capital = Total CA Total CL

Net working capital is very important to the company because it shows the companys ability to meet the contingencies in the future. YEAR 1998-99 1999-00 2000-01 2001-02 2002-03 CALCULATION 441.77-232.36 488.24-343.21 720.46-218.69 646.11-205.28 660.55-136.27 AMOUNT 209.41 145.03 501.77 440.83 524.28

Net working capital

600 500 400 300 200 100 0 1998-99 1999-00 2000-01 2001-02 2002-03

AM OUN T

year

Implications: The net working position of the company shows the fluctuating trend during the year 1998-99 to 2002-03. The company has the highest net working capital in the year 2002-03, which means that the company has the strongest liquidity position in that year.

Cash generated per rupee of sales = Depreciation * 100

PAT +

Sales The cash generated per rupee of sale shows the earning capacity of the company to generate cash from the sales of the company. YEAR 1998-99 1999-00 2000-01 2001-02 2002-03 CALCULATION 202.42 1472.95 279.9 1717.29 390.01 2428.04 306.65 2276.05 340.28 2416.35 RATIO 13.74% 17.23% 16.06% 13.47% 14.08%

cash generated per ruppe of sales

20.00% 15.00% 10.00% 5.00% 0.00% 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

year

Implications: The cash generated per rupee of sale shows the fluctuating trend during the year 1998-99 to 2002-03. The has earned the highest percentage of cash from the sales in the year 1999-00, which indicates the highest profit from the sales transactions of the company. (C) Profitability Ratio Useful information about the trend of profitability is available from profitability ratio. The creditors, both short-term and long-term, also interested in the financial soundness of a firm are the owners and management of the company itself. The management of the firm is naturally eager to measure its operating efficiency. The owners invest their funds in the expectation of reasonable returns. The profitabili0ty ratios of a firm can be measured by its profitability. The different profitability ratios are as follows: Gross profit ratio Net profit ratio Operating profit ratio Rate of return on Investments Return on equity Gross profit ratio = Gross Profit * 100 Sales

Gross

Profit

= Sales

(Op.

stock-

Closing

stock)

consumption of raw materials Purchase of goods consumption of stores and spare parts power and fuel expenses rent expenses The gross profit ratio shows the relationship between gross profit earned per rupee of sales. It is one of the useful indicators of the profitability of the business. YEAR 1998-99 1999-00 2000-01 2001-02 2002-03 CALCULATION 562.30 1472.95 776.41 1717.62 1206.03 2428.04 937.5 2277.93 1035.86 2419
Gross profit ratio
50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO 38.18% 45.20% 49.67% 41.16% 42.82%

RATIO

year

Implications:

The gross profit ratio shows the fluctuating trend during the year 1998-99 to 2002-03. The gross profit ratio is the highest from the year 2000-01, which means that the company has generated highest gross profit per rupee of sale.

Operating Ratio = Operating Profit * 100 Sales

Operating profit = Income operating cost Operating cost Depreciation Operating profit ratio shows the relationship between PBDIT other incomes and net sales. It shows the efficiency of the management. The higher the ratio, the lesser will be the margin available to the proprietors. YEAR 1998-99 1999-00 2000-01 2001-02 2002-03 CALCULATION 450.10 1472.95 613.69 1717.62 865.50 2428.04 712.33 2276.05 795.92 2416.35 RATIO 30.56% 35.73% 35.65% 31.30% 37.08% = COGS + (Adm. + Selling Expenses) +

Opeating ratio
40.00% 30.00% 20.00% 10.00% 0.00% 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

year

Implications: The operating profit ratio shows the fluctuating trend during the year 1998-99 to 2002-03. The gross profit ratio is the highest for the year 2002-03, which means that the company has operated very efficiently in that year to brings down the cost.

Net profit ratio = Net Profit * 100 Sales

This ratio is valuable for the purpose of ascertaining the overall profitability of the business and shows the efficiency of operating business.

YEAR 1998-99 1999-00 2000-01

CALCULATION 170.55 1472.95 234.10 1717.62 249.71

RATIO 11.58% 13.63% 8.10%

2001-02 2002-03

2428.04 184.56 2277.93 215.25 2419

8.10% 8.90%

Net profit ratio

15.00% 10.00% 5.00% 0.00% 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

year

Implications: The net profit ratio shows the fluctuating trend during the year 1998-99 to 2002-03. The net profit is the highest for the year 1999-00, which means that the company has operated very smoothly to bring down the cost. Rate of return on Investments = EBIT * 100 TA TA = net FA + Investments + net CA The return on investments is a measure of profitability from a given level of investment. It is an excellent measure of overall performance of a company. YEAR 1998-99 CALCULATION 221.05 RATIO 18.63%

1999-00 2000-01 2001-02 2002-03

1186.26 321.80 2022.79 372.70 2406.22 394.78 2026.89 390.86 2021.50

Rate of return on Investment

15.91% 15.49% 19.48% 19.34%

20.00% 15.00% 10.00% 5.00% 0.00% 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

year

Implications: The return on investments shows the fluctuating trend during the year 1998-99 to 2002-03. The company has the highest return on investments in the year 2002-03, which indicates that the company has the highest profitability from a given level of investments.

Return on equity = Profit for equity * 100

Net Worth The return on equity is a measure of profitability from the standpoint of the shareholders point of view. This ratio indicates the efficiency with which shareholders funds were employed.

YEAR 1998-99 1999-00 2000-01 2001-02 2002-03

CALCULATION 170.55 637.66 234.10 858.22 249.71 1304.80 184.56 1248.23 215.25 1427.66
Return on equity

RATIO 26.75% 27.28% 19.18% 14.79% 15.08%

30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

year

Implications: The company has the fluctuating trend for the year 1998-99 to 2002-03. The company has the highest return on equity for the year 1999-00, which means that the company has the highest profitability on shareholders fund.

(D) Valuation Ratio Valuation ratio of the company includes the following ratios: Earning per share Dividend per share Dividend payout ratio Earning per share = Net Profit

# of equity Shares The earning per share ratio is an important to know the earning of the firm per share. The profitability of the common shareholders investments can be also measured by earning per share. YEAR 1998-99 1999-00 2000-01 2001-02 2002-03 CALCULATION 170.55 3.3883 234.10 3.3883 249.71 7.9380 184.56 7.9380 215.25 7.9380 RATIO 50.34 69.09 31.46 23.225 27.12

Earning per share

70 60 50 40 30 20 10 0 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

YEAR

Implications: The earning per share of the company shows the fluctuating trend during the year 1998-99 to 2002-03. The company has the highest earning per share in the year 1999-00, which means that the company has the highest earnings per equity share. Dividend payout ratio = DPS EPS Dividend payout measures the relationship between the earning belonging to the ordinary shareholders and the dividend paid to them. It is the relationship between dividend per share and the earning per share. YEAR 1998-99 1999-00 2000-01 CALCULATION 3 50.3350 3.50 60.0901 3.50 RATIO 0.0596 0.0582 0.1113

2001-02 2002-03

31.4575 3.50 23.2503 4 27.1164

dividend payout ratio

0.1505 0.1475

0.2 0.15 0.1 0.05 0 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

year

Implications: The dividend payout shows the increasing trend during the year 1998-99 to 2001-02. The dividend payout is the highest for the year 2001-02, which means that the company has paid the highest dividend as the percentage of the earning per share.

(E) Finance Structure ratio Finance structure ratio shows the financial structure of the company. The finance structure of the company includes the following ratios: Equity ratio Debt ratio Debt equity ratio Equity Ratio = Net worth

Total capital employed The equity ratio shows the part of the owners investments in the total capital employed. YEAR 1998-99 1999-00 2000-01 2001-02 2002-03 CALCULATION 637.66 1171.90 858.22 2022.79 1304.80 2406.32 1248.23 2026.89 1427.66 2021.50 RATIO 0.54 0.42 0.54 0.62 0.71

Equity ratio
0.8 0.6 0.4 0.2 0 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

year

Implications: The equity ratio shows the fluctuating trend during the year 1998-99 to 2002-03. The company has the highest percentage of the equity in the total capital employed in the year 2002-03. It means the company has a very well goodwill in the market. Debt Ratio = Long term debt Total capital Employed The debt ratio shows the total part of the long term debt in the total capital employed. YEAR 1998-99 1999-00 2000-01 2001-02 2002-03 CALCULATION 534.24 1171.90 1164.57 2022.79 1101.52 1304.82 778.66 2026.89 593.84 RATIO 0.46 0.58 0.84 0.38 0.29

2021.50

Debt ratio
1 0.8 0.6 0.4 0.2 0 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

year

Implications: The debt ratio shows the fluctuating trend during the year 1998-99 to 2002-03. The company has the highest debt as a percentage of the total capital employed in the year 200001. Debt Equity ratio = Total long term debt Net worth The debt equity ratio measures the relationship of the capital provided by the creditors to the amount provided by shareholders. This ratio indicates the extent of use of leverage. A high ratio indicates the aggressive us leverage, and highly leverage company is more risky for the creditors. A low ratio indicates that the company is making little use of leverage and is too conservative.

YEAR 1998-99 1999-00 2000-01 2001-02 2002-03

CALCULATION 534.24 637.66 1164.57 858.22 1101.52 1304.80 778.66 1248.23 593.84 1427.66

RATIO 0.84 1.36 0.84 0.62 0.42

Debt Equity ratio

1.5 1 0.5 0 1998-99 1999-00 2000-01 2001-02 2002-03

RATIO

year

Implications: The debt equity ratio shows the fluctuating trend during the year 1998-99 to 2002-03, but it is continuously decreasing from the year 1999-00. The company has the highest liquidity ratio in the year 1999-00, which means that the company is highly leverage in that year and the creditors have very high risk in that year.

TREND ANALYSIS BALANCESHEET Particulars Sources of fund Share holders fund share capital Reserves and surplus 1998 1999-99 100 100 100 100 100 Loan funds Secured loans Unsecured loans 100 100 100 100 100 Application of funds Fixed assets Gross block - depreciation Net block + Capital W-I-P 100 100 100 100 100 00 0 36.55 34.59 200001 200102 200203 134.3 123.3 1 123.8 9

13403 134.3 102.9 93.59 6 104.6 2 95.75

3.14 742.6 8 112.2 3 70.5

-20.09 60.83 -3.77 799 -67.19 77.66 100.7 9 102.8 5 41.94 70.86 8.25 70.41

190.2 58.34 219.2 7 -34.49 92.34 27.01

264.2 8 107.7 7 281.1 5 -90.88 95.06 36.21

272.6 2 300.6 1 266.4 4 -80.83 92.74 16.67

294.3 8 426.1 3 267.9 6 -91.06 88.38 16.67

100 100 Investments 100 Current assets,loans 100 and advances Inventories 100

37.84

177.4

124.1

124.8

Sundry debtors Cash and Bank Loans and advances

100 100 100 100 Less: current liabilities 100 Provisions 100

7 19.86 29.9 -67.92 -67.92 2.29 31.82 10.52 63.09 53.37 -14.98 -63.3 166.6 7

5 50.3 -62.75 12.48 46.25 -19.71 146.2 8 110.5 1 70.86

7 51.81 -56.45 17.99 49.52 -54.56 217.5 5 150.3 6 70.41

Net current assets Less: deffered tax

100 100 100 100

-30.74 139.6 6 70.5 102.8 5

PROFIT AND LOSS ACCOUNT PARTICULARS Sales Other Income Increase/Decrease in stock 1998 -99 100 100 100 100 Expenditure Consumption of RM 100 Purchase of finished goods and 100 semi-finished goods excise duty payments to and employees Manufacturing, 100 pro.for 100 199900 16.61 50.76 103.7 3 17.51 200001 64.84 -46.87 1228.8 8 68.11 200102 54.52 -20.56 356.3 7 51.6 200203 64.05 3.5 430.9 60.99

11.38 57.52 -59.92 -88.71 18.59 5.97 28.57 83.04 12.24 47.83 97.05 39.6 55.7 70.03 51.15 159.38 230.99 65.12 82.16 340.23 42.68 16.96

28.48 39.18 -95.31 -100 56.41 27.06 188.4 4 247.4 5 45.83 84.79 283.0 9 51.64 10.38 87.88 153.1 3 8.21 65.43 38.43 219.0 9 83.73 53.04 106.7 4 292.3 1 75.72 191.1 4 46.35 481.2 5 26.21

administration 100 100

and selling expense Interest and charges

Profit Before Depreciation and 100 tax Less: pro.for Depreciation Profit before tax 100 and 100 100 100

exceptional items Less: pro. for taxation-current -deffered :prior period adj.(net) Profit after tax Less: Taxation of early years

290.6 100 100 3 37.26

359.3 46.41

100 Add: Excess pro.of taxation 100 : Balance in P&L account 100 b/f Profit available for 100 to 100 100 100 100

46.46

8.25

26.25

-19.55 -55.19 35.99 112 44.11 140

-77.72 -79.45 6.34 35 27.78 212.5 263.3 9 -23.75 12.5 -74.46 -92 23.8

approximation Less: Transferred deb.red.fund reserves Interim dividend Proposed dividend Tax on dividend

8.47 -66.63 173.42 50 153.57 -31.25 -50 -44.3 -72.3

Transferred to general 100 reserve Balance sheet carried to balance 100

DU PONT CHART
ROA(%) 1998-99 1999-00 2000-01 2001-02 2002-03 14.38% 11.57% 10.38% 8.85% 10%

Net profit margin (Net profit / sales) 0.1158 0.1363 0.0989 0.0810 0.0890

Total assets turnover (sales / Total assets) 1.2417 0.8491 1.0497 1.1239 1.1966

Net profit (gross profit tax) 170.55 234.10 249.71 184.56 215.25

Sales 1472.95 1717.62 2525.92 2277.93 2419.00

Sales 1472.95 1717.62 2525.92 2277.93 2419.00

Total assets (F.A + Invt. + C.A.) 1186.26 2022.79 2406.22 2026.89 2021.50

Gross profit 562.30 776.41 1206.03 937.50 1035.83

Tax 19.75 30.75 23.10 109.66 103.86

Fixed assets 975.11 1875.55 1902.08 1879.41 1836.93

Investment

Current assets

1.74 2.21 2.37 2.03 2.03

441.77 488.24 720.46 646.11 660.55

CASH FLOW STATEMENT Cash flow from Operating Activities Year Rs.(In cr.)
c s in w a h flo
60 0 40 0 20 0 0 1998 9 9 1999 0 0 2000 0 1 ya e r 2001 0 2 2002 0 3

1998-99 298.48

1999-00 7.59

2000-01 239.84

2001-02 426.46

2002-03 324.93

R .(Inc s r.)

Cash inflow decreases from 1998-99 to 1999-00 is 95.46%. Cash inflow increases from 1999-00 to 2000-01 is 3059.95%. Cash inflow increases from 2000-01 to 2001-02 is 77.81%. Cash inflow decreases from 2001-02 to 2002-03 is 23.81%. Explanation:

 Due to substantial increase in the interest paid from 22.78 cr. Rs. in 1998-99 to 234.47 cr. Rs. in 1999-00, approximately 929.98%, the cash inflow comes down to 7.59 cr. Rs. in 1999-00. There is a huge increase in depreciation from 62.80 cr. Rs. in 1999-00 to 140.30 cr. Rs. in 2000-01, approximately 123.41% and interest received from 23.99 cr. Rs. to 93.06 cr. Rs., i.e., 287.91%. The interest paid is also decreased 58.4% from 234.47 cr. Rs. in 1999-00 to 97.54% in 2000-01. So, the net cash inflow increases from 1999-00 to 2000-01. But, the company has paid huge amount of cash in the inventory. In the year 2001-02, the company has received good amount of cash from receivables and also in the inventories. Though the company has lost the cash on trade payables, the companys cash inflow increases in 2001-02 as compared to 2000-01. From the year 2001-02 to 2002-03, there is a substantial decrease of 59.47% in the interest received from 93.29 cr. Rs. to 37.81 cr. Rs. Though the company has decreased the expensed on trade payables, it has also lost the money on the inventories and the interest has also increased 40.70% ,i.e., from 79.98 cr. Rs. in 2001-02 to 112.53 cr. Rs. in the year 2002-03. The company has also paid huge amount of cash to the

direct taxes. So, the cash outflow increases and the cash inflow from operating activity decreases. Cash inflow from Investing Activities Year 1998-99 Rs. (In (374.48) cr.)
c s o tflo ah u w
80 0 60 0 40 0 20 0 0 1998 9 9 1999 0 0 2000 0 1 y ear 2001 0 2 2002 0 3

1999-00 (583.43)

2000-01 (320.94)

2001-02 (86.65)

2002-03 (82.62)

R (In cr.) s.

Increase in the cash outflow from 1998-99 to 1999-00 is 55.80%. Decrease in the cash outflow from 1999-00 to 2000-01 is 45%. Decrease in the cash outflow from 2000-01 to 2001-02 is 73%. Decrease in the cash outflow from 2001-02 to 2002-03 is 4.65%.

Explanation: Due to substantial increase in the purchase of fixed assets of 42.59% of 166.29 cr. Rs. and other businesses to 70 cr.Rs., the cash outflow increased 55.8% from 374.48 cr.Rs. to 583.43 cr. Rs. As compared to 1999-00, in 2000-01, there was a substantial decrease in the purchase of fixed assets of 64.59% from 557.48 cr. Rs. in to 197.39 cr. Rs. So the net cash outflow decreased 45%, from 575.34 cr.Rs. to 310.94 cr. Rs. As compared to 2000-01, in 2001-02, there was a decrease in the Purchase of fixed assets of 47.76% from 197.39 cr Rs. to 103.11 cr. Rs. and havent purchased any other business. But, the company has purchased the investments of 104.58 cr. Rs. As a result, the net cash outflow is down by 73% from 320.94 cr. Rs. to 86.65 cr. Rs. In the year 2002-03, the company has purchased the investment only of Rs. 5 cr. Rs., which was 95.21% down from 2001`-02. The company has also earned very less from sale of an investments. So, the net cash outflow was down by 4.65% from 86.65 cr. Rs. to 82.62 cr. Rs.

Cash flow from financing activities Year Rs.(in cr.) 1998-99 117.35 1999-00 550.52 2000-01 81.22 2001-02 (340.53) 2002-03 (240.06)

cash inflow and outflow

1000 500 R s.(in cr.) 0 -500 199899 199900 200001 year 200102 200203

Increase in the cash inflow from 1998-99 to 1999-00 is 369.21%. Decrease in the cash inflow from 1999-00 to 2000-01 is 85.25%. Decrease in the cash inflow from 2000-01 to 2001-02 is 519.27%. Decrease in the cash outflow from 2001-02 to 2002-03 is 29.50%. Explanation: As compare to 1998-99, in 1999-00, the loans and deposits increased 352.31% fro 29.38 cr. Rs. to 74.13 cr. Rs. Proceeds from borrowings also increased

353.30% from 157.89 cr. Rs. to 715. 71 cr. Rs. So, the cash inflow increased from 117.3335 cr. Rs. to 550.62 cr. Rs. As compared to 1999-00, in 2000-01, there was a significant increase in the borrowings of 98.13% of 702.35 cr. Rs. from 715.71 cr. Rs. to 1418.05 cr. Rs. But, the company has paid the largest amount in the financing activities in 2000-01 in the repayment of the borrowings. The company has paid 1511.92 cr. Rs., which increases 1283.96 cr. Rs. So, the net cash inflow decreased from 550.62 cr. Rs. to 81.22 cr. Rs. From 2000-01 to 2001-02, the income from borrowings decreased 8.8% of 124.69 cr. Rs. fro 1418.06 cr. Rs. to 1293.37 cr. Rs. and the repayment of borrowings also increases 136.99 cr. Rs. The company is not gaining in the form of share capital or share premium also. So, there was a cash outflow of 340.53 cr. Rs. As compared to 2001-02, in 202-03, there was a substantial decrease in the earnings from borrowings of 70.89%. But, the company has also paid the lesser amount of borrowings which brings down cash outflow from 1648.91 cr. Rs. to 511.01 cr. Rs. So, the net cash outflow decreases of 29.50% fro 340.53 cr. Rs. to 240.06 cr. Rs.

Common size Statement of Balance sheet Share holders` Fund Share Capital Reserves and Surplus 2.86 1.67 3.30 50.9 40.75 50.9 0 2 53.7 42.43 54.2 5 Loan Funds Secured Loans Unsecured Loans 39.4 2 6.82 46.2 5 100 APPLICATION OF FUNDS Fixed Assets Gross Block - Depreciation Net Block + Capital W-I-P 1 23.85 15.5 3 33.73 30.2 4 57.57 45.7 100 7 100 37.11 22.26 1.31 7.12 3.92 3.93 57.67 66.70 61.58 70.62

38.42 29.38 100 100

50.1 85.33 90.0 4 9.06 8.41 41.0 8 41.1 2 82.2

109.3 116.0

3 5 4 12.8 21.24 27.33 88.11 88.71 4.61 2.16

5 76.92 77.1 8 15.80 1.85 92.72 79.0

92.72 90.87

0 0.15 0.11 Investments Current assets, loans and 10.2 8.29 advances Inventories Sundry debtors Cash and Bank Loans and Advances 6 9.26 6.46 3.13 0.59 14.6 8.79

3 0.10 14.0 3 5.89 0.50 9.52 0.10 0.10

13.46 13.54 8.09 0.68 9.65 8.19 0.80 10.15

6 37.2 24.14 29.9 4 18.6 3 16.76 7.81 198.4 1.27 20.8 5 0.00 0.00 100

31.88 32.68 8.76 1.37 4.97 1.77

Less: Current liabilities Provisions Net Current assets Less: Deffered tax

4 0.95

4 17.6 7.17 5 0.00 0.00 100 0.00 0.00 100

21.75 25.94 14.57 16.91 7.18 9.03 100 100

CONCLUSION From the above interpretation we can say that Nirma Limited consolidated its position as one of the largest business group in sector, in all major financial parameters including sales, profit, networth and assets. Nirma Limiteds gross turnover for the year ended March 31st, 2003 increased to Rs 2416.35 crore Rs., compared to

Rs 2276.05 crore in the previous year, registering the growth of 6.16 percentage . Net profit for the year recorded an increase of 16.63% percent to Rs 215.25 crore Rs. compare to net profit 184.56 crore Rs. for the year 2002-03 and 2001-02 respectively. Nirmas expenditure increased 4.94% from 1866.79 cr. Rs. in the year 2001-02 to 1959.02 cr. Rs. in 2002-03. It means the Nirma has been successful in reducing the expenditure that will increase the profit for the company. As compared to 2001-02, in 2002-03, though the sales have increased, the fixed assets have decreased, which means that the company has effectively utilized the assets to brings down the cost. The companies current asset has also increased which shows fro 646.11 cr. Rs. to 660.55 cr. Rs., which shows the improved liquidity position in the year 2002-03 as compared to 2001-02. The current liability of the company has also decreased from 177.50 cr. Rs. in the year 2001-02 to 100.45 cr. Rs. (43.41%) in the year 2002-03. But, the earning per share of the company has reduced considerably from 1999-00 to 2002-03.

The company has performed fairly well over the last three years, which shows the ability of the company for the future prospects.

COMPANY PROFILE ABOUT THE COMPANY: VISION AND MISSION Nirmas vision, based on its Indian experience and aided by professional management team, is to replicate its leadership position internationally. Within the short span of a year, Nirma achieved commendable position in the leadership of detergent market in Bangladesh through its joint venture there.

Nirmas vision visualizes itself as a vibrant, pro-active and widely admired ethical corporate citizen. In fulfillment of this role as a responsible part of the society and environment in which one operates, nirma has undertaken a hart of activities in the educational and social development areas like: Nirma institute of management (NIM) Nirma memorial trust and Nirma Foundations

HISTORY OF THE COMPANY Mr. Karsenbhai K. patel, the founder and the initiator of the company Nirma limited with a belief of providing better product, better value and better living, began the company in 1969. This Philosophy of providing quality products at the lowest prices has been acknowledged as the marketing miracle.

Their first product was the bag of phosphate free synthetic detergent powder, which was the signal of a world class product. In the toilet soap industry, Nirma entered in 1990 with Nirma Bath a carbolic soap and today they have generated 18% share in volume, making Nirma the second largest player. Nirma is based on the pragmatic concept of umbrella branding. Nirma has been increasingly successful in extending its brand equity to other product categories like premium detergent, Premium toilet Soaps, Shampoos, Tooth Pastes and iodised Salt, thus opening new vistas to the field of Brand Building. Nirmas entry into the soaps market was marked with the introduction of Nirma bath, a carbolic soap, today it is an established brand in this segment. Close on the heels of this was launched Nirma Beauty Soap in three variants, which in a matter of few years has become the third largest toilet soap brand in India. This encouraging market reception has been kept going with the launch of Nirma Premium and Nirma Lime Fresh. Nirma has helped to expand the entire soaps and detergent market to a level of 82 billion. Today, Nirma has Rs. 17

billion share in this market. Even though Nirma was a late enterant in the 1990 in the highly competitive toilet soaps market, it is already the second largest manufacturer, selling close to 1,06,000 MT of bathing soaps in 1999-00. Nirma detergent powder and Nirma Detergent Cake are among Indias top 20 most distributed brands and MNC brands in respective category. Nirma has a geographically dispersed manufacturing base and they are located at: Mandali, District mehsana, Gujarat Kisan Industries, Moraiya, District Ahmedabad, Gujarat. Alindra, District Vadodara, Gujarat. Kalatalav, District Bhavnagar, Gujarat. Chhartral, District Mehsana, Gujarat. Trikampuraa, District Ahmedabad, Gujarat. Pithampura, district Dhar, Madhya Pradesh. Jaipur, district Kanpur, Dehat, Uttar pradesh.

VICE PRESIDENT MARKETING

NATIONAL SALES MANAGER

ZONAL SALES MANAGER

AREA SALES MANAGER

SALES EXECUTIVE

SALES SUPERVISOR

SALES REPRESENTATIVE

ANNEXURE
Questionnaire for CONSUMERS
1) Are you aware about the brand name Nima? Through

whom? Yes ______ Friends______ Radio ______

No ______ Television ______ Any Other ______

Relative ______ Newspaper ______

Which products of Nirma do you know?

Beauty Soap ______ ______ Detergent Powder ______ Bartan Bar ______

Tooth Paste ______

Salt

Detergent cake ______

How many brands of Beauty Soap you know? Lux ______ Breeze ______ Fairglow ______ Nima Rose ______ Any Others ______ Which Beauty Soap do you purchase? 5) Which factors are you consider while purchasing a beauty soap? Price ______ _____ Quality ______ Fragrance ______ Schemes ______ Are you brand loyal customer for using beauty soap? _____ 7) Do your decision is affected by new introduction or scheme? _____ If yes, what scheme attracts you most? __________________ How many members do you have in family? ______ How often you purchase soap in how much quantity? ___ Who takes the decision for purchasing beauty soap? ____ From where do you purchase it? Provision store ______ Near by shop ______ 13) Super market ______ Any other ______ Demand ______ Size and shape

Which media you are most exposed to, for taking your purchase decision? Radio ______

Television ______

Newspaper ______ Any other ______

14) Have you heard about Nima Rose? ______

15) the same? Friends______ Radio ______ 16) 17)

If yes, from where you come to know about Relative ______ Newspaper ______ Television ______ Any Other ______ No ______ ______

How do you find it? Yes ______ No ______

If no, would you like to try it? Yes

ANY SUGGESTIONS _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ Name of Customer Address Age Occupation Monthly Income

Questionnaire for RETAILERS

1) Which products of Nirma do you carry?

Beauty Soap ______ ______

Tooth Paste ______

Salt

Detergent Powder ______ Bartan Bar ______

Detergent cake ______

2) Which Beauty Soap brands do you carry?

Lux ______

Breeze ______

Fairglow ______

Nima Rose ______ Any Others ______

3) Which factors are you consider important for beauty

soap sell? Price ______ _____ Quality ______ Fragrance ______ Schemes ______ 4) What is the retail price of each soap? 5) Give the rank to each soap according to their sales volume? 1) ______________ 2) ______________ 3) ______________ 4) ______________ 5) ______________ 6) What is promotional scheme of each soap? Lux Nima Rose Any other 7) How much quantity do you sell of Nima Rose (Monthly Average)? ______ Fairglow Breeze Demand ______ Size and shape

8) How much margin Nirma provides to you? Are you satisfied? ______ 9) Are you finding any difficulty in dealing with Nima Soap? 10)If no, would you like to try it? Yes ______ No ______ ANY SUGGESTIONS ____________________________________________________________ _________________________________________________________ _________________________________________________________ _________ Name of Retailer Name of Owner Address

Nirma products Beauty soap Tooth paste Salt Detergent powder Bartan bar Detergent cake

Percentag e 100 43 67 100 76 100

Product that Retailers carry of Nirma

Detergent cake, 100

Beauty soap, 100 Tooth paste, 43 Salt, 67

Bartan bar, 76 Deergent powder, 100

Soap Lux Breeze Nima Rose Fairglow Other

Percentag e 100 86 63 100 45

Beauty Soap that Retailer carry

Other, 45

Lux, 100

Fairglow, 100

Breeze, 86 Nima Rose, 63

Factor Price Quality Fragrance Size and shape Scheme

Percentag e 74 36 67 37 88

Factor that Retailer consider

Scheme, 88

Price, 74

Size and shape, 37

Quality, 36 Fragnance, 67

Brand Lux Fairglow Breeze Nima Rose Others

Rank

CONSUMER Percentag e 5 45 10 40

Source Friends and relatives Television Radio Newspaper

Friends and relatives 5% Newspaper 40% Television 45% Radio 10%

Nirma products Beauty soap Tooth paste Salt Deergent powder Bartan bar Detergent cake

Percentag e 100 60 55 100 76 100

Product awreness of Nirma

Detergent cake, 100

Beauty soap, 100 Tooth paste, 60 Salt, 55

Bartan bar, 76 Deergent powder, 100

Soap Lux Breeze Nima Rose Fairglow Other

Percentag e 100 100 73 100 42

Other, 42 Fairglow, 100

Lux, 100

Nima Rose, 73

Breeze, 100

Soap Lux Breeze Nima Rose Fairglow Other

Percentag e 29 18 16 20 17

Other, 17

Lux, 29

Fairglow, 20 Nima Rose, 16 Breeze, 18

Factor Price Quality Fragnance Size and shape Scheme

Percentag e 83 41 57 48 75

Scheme, 75

Price, 83

Size and shape, 48 Fragnance, 57

Quality, 41

Factor Yes No

Percentag e 21 79
Brand loyalty

Yes, 21

No, 79

Factor Yes No

Percentag e 88 12
New shceme

No, 12

Yes, 88

Scheme Buy 3 and 1 free Price reduction Better quality

Percentag e 48 33 19

Scheme

Better quality Buy 3 and 1 free Price reduction

Purchase point Provision store Super market Near by shop Other

Percentag e 56 22 16 6

Near by shop, 16

Other, 6

Super market, 22

Provision store, 56

Source Television Radio Newspaper

Percentag e 61 9 30

Newspaper, 30

Radio, 9

Television, 61

Source Friends and relatives Television Radio Newspaper

Percentag e 7 43 9 41

Friends and relatives, 7 Newspaper, 41 Television, 43 Radio, 9