nirma strategic management

STRATEGIC MANAGEMENT

A Project OnNIRMA

GROUP MEMBERS:Bhavin Shukla Jagannath dash Manisha Gupta Piyush Akhaja

• Name: Nirma Ltd.

• Establishment : 1969

• Headquarters : Ahmedabad

• Key person : Dr. Karsanbhai Khodidas Patel (CMD)

• Industry Type : FMCG

• Employees working : Around 14,000

Introduction…

• HUL

• P & G

• Advance Petrochemicals Ltd.

• Continental Chemicals Ltd.

• Hipolin Ltd.

• Standard Surfactants Ltd.

Major Competitors…

• customer-focused company committed to consistently offer better quality products and services that maximize value to the customer.

• Nirma is a phenomenon and synonymous with Value for Money.

Vision & Mission…

MAJOR PLANTS

• Soda Ash :• Linear Alkyl Benzene :• Packaging : • Soaps : • Detergents : • Edible Salt : • Industrial Salt :

Operations…

• Pioneered the concept of flat distribution network.

• Operates with two parallel distribution networks. 1. Principal channel [Nirma products] 2. Parallel channel [Nima products] • Good urban as well as rural presence • Role of network• One of the lowest cost FMCG distribution

channels of the country.

Supply Chain Management…

• Largest player of the Indian Detergent Market with a share of 38%.

• Second largest toilet soap marketer of the Indian Market with a share of 20%.

• “Dudh si safedi, Nirma se aayi, rangin kapade bhi khil khil jaaye, sab ki pasand Nirma” jingle used since last 35 years.

• Nirma is one of the largest selling single detergent brands in the world.

• Daily 3 million pieces of toilet soaps are sold across India. Daily 6.2 million units of detergent and cake are sold across India.

• Nirma Lime Fresh toilet soap sold 17 million packs in the first month of its launch.

• Daily 3 lakhs plus units of Nirma Shudh Salt are sold across India.

Facts About NIRMA…

• Nirma believes in disciplined, serene and pleasant working environment.

• Empowerment, Equality, Security and Opportunity

• Developing HR is a continuous process

• hires only the best people in their respective fieldsHuman Resource Management…

44%

24%

20%

12%

WESTNORTHSOUTH EAST

SALES…

• Nirma education & research foundation (NERF) in the year 1994

• Vision visualization• Nirma memorial trust, nirma foundation

An organisation With sense of

Corporate social responsibility

NIRMA…

• Threat of new entrants: 4.7(can easily enter)

• Threat of Substitute: 4.2 (high but depends upon the quality)

• Bargaining Power of Supplier: 2.5(ample in no.)

• Bargaining Power of Customer: 4.9(low switching cost)

• Intensity of Rivalry between Competitors: 4.8(very fierce) Porter’s 5 Forces Analysis…

Operating Profit Margin 16.98 16.51

Gross Profit Margin 8.92 6.80

Net Profit Margin 3.05 9.74

Inventory Turnover Ratio 9.23 6.26

Current Ratio 2.31 2.10

Return On Investment 13.85 12.72

Financial Analysis…

PARTICULARS 2009 2008

STRENGTHS:

• Strong brand equity.

• Produces raw material or intermediates itself.

• Market leadership.

• Wide distribution network.

WEAKNESSES:

• Less presence in premium

segment.

• Lack global tie ups and

thus lacking in export

market.

SWOT Analysis…

Cont…

OPPORTUNITIES

• Exports

THREATS

• MNCs coming to India.

• Emergence of small but strong regional players.

• Continuously exploring & developing new

products & processes.

• Laying emphasis on cost effectiveness.

• Maintaining effective Quality Management

System. Conclusion…

Thank you…