PIONEER INSTITUTE OF PROFESSIONAL STUDIES, INDORE (M.P.)

SESSION

(2014-2015)

A

PRESENTION

SWOT on

NIRMA PVT. LTD

SUBMITTED TO: PRESENTED BY:

Prof. VARUN KESHARI MEEN BAHADUR THAPA

MBA 3rd sem

Roll No: 14091018

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Contents :- PHASE 1

Company Profile Define The Business Promoters Mergers/Alliances/Takeovers Current Top Management Vision/Mission of the Company Current Goals & Objective Location of manufacturing unit and touch point of sales Financial Aspects Stakeholders

Company Profile2 | P a g e

DEFINE THE BUSINESS:

Nirma is a group of companies based in the city of Ahmedabad in western India that manufactures products ranging from cosmetics, soaps, detergents, salt, soda ash, LAB and Injectable.

Karsanbhai Patel, a well-known entrepreneur and philanthropist of Gujarat, started Nirma as a one-man operation. Today Nirma has over 15000 employees and a turnover of over Rs. 3550 crores.

In 2004, Nirma's detergent approached 800,000 tonnes – one of the largest volumes sold in the world – under a single brand 'NIRMA'.

Nirma Ltd. has become a multi product company representing a wide array of product lines starting from Detergent Powders and personal care products like Toilet Soaps to chemicals like Sulphuric Acid, Glycerin, Alfa Olefin Sulphonates, Fatty Acids, Oxygen etc.

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Type Private

IndustryFast-moving consumer goods

Founded 1969

HeadquartersAhmedabad, India

Key peopleKarsanbhai Patel (CMD)

The Brand name "NIRMA" is owned by Nirma Chemical Works Pvt. Ltd. which has given a non exclusive license to AME thereby allowing AME to use the Nirma brand trade marks.

The Company proposes to establish R&D Centre at site for better waste utilisation and infrastructural betterment.

Nirma is not only India's largest selling brand in detergent segment but is also the second largest manufacturer of toilet soap in the country.

Nirma became a huge success and all this was a result of karsanbhai patel’s entrepreneurial skills. In the 1980s nirma moved ahead of surf,detergent by HLL , to capture a large market share.

‘’Nirma ‘’ is the name after NIRUPAMA (NIMA) daughter of DR. Karasanbhai patel.

‘’DUDH SI SAFEDI NIRMA SE AYE RANGIN KAPADA BHI KHIL KHIL JAYE’’ Jingle used for last 35 years.

PROMOTERS

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1. Karsanbhai Khodidas Patel

2. Rakesh Karsanbhai Patel

3. Ambubhai Maganbhai Patel

4.  Dr.K K Patel

5. Mr.Chinubhai R Shah

6. Mr.Hiren K Patel

Mergers/Alliances/Takeovers

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CCI has given its green signal to the proposed deal that includes merger of seven companies into FMCG major Nirma, saying that the deal does not raise anti-competition concerns in the country.

Under the proposed deal, seven companies -- Banihal Holdings, Kargil Holdings, Kulgam Holdings, Leh Holdings, Uri Holdings, Kanak Castor Products and Siddhi Vinayak Cement -- would amalgamate into Nirma.

Current Top Management

Name Designation

Kalpesh A Patel Executive Director

Rajendra D Shah Director

Kaushikbhai N Patel Director

Pankaj R Patel Director

Chinubhai R Shah Director

Shrenikbhai K Lalbhai Director

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Vision/Mission of the Company

VISION: - Better quality and services that maximize value to the customer.

MISSION: - To provide;

‘’ Better products, Better value, Better living’’.

JINGLE OF NIRMA:-

‘’DUDH SI SAFEDI NIRMA SE AYE RANGIN KAPADA BHI KHIL KHIL JAYE’’

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Current Goals & Objective

GOALS:-

Nirma is a customer-focused company committed to consistently offer better quality products and services that maximise value to the customer.

OBJECTIVE:-

Continuously exploring & developing new products &processes.

Laying emphasis on cost effectiveness.

Maintaining effective Quality Management System.

Complying with safety, environment and social obligations.

Imparting training to all involved on a continuous basis.

Teamwork and active participation all around.

• Demonstrating belongingness and exemplary behaviour towards organisation, its goals and objectives.

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Location of manufacturing unit and touch point of sales:-

You can view the entire list of company locations such as Registered Office, Branch Office, Head Office, Corporate Office, Regional Offices, Overseas Office, Factory, Plants, and Training Centers etc. with details for Nirma Ltd. Registered Office:

Nirma House,

Ashram Road City:AhmedabadState:GujaratPincode:380009Email ID:investors@nirma.co.inWeb Url:http://www.nirma.co.in Factory/plant:Block No. 16/B,Ahmedabad Mehsana Highway,P.O. MandaliCity:Mehsana DistrictState:GujaratPincode:382732

Wind Farm Project,Survey No. 691,Village - Dhank,City:Rajkot Dist.State:GujaratPincode:0

Village - Moraiya,Post Chancharwadi Vasna,

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Near Modern Denim-City:Ahmedabad DistrictState:GujaratPincode:382213

Alindra Detergent Complex,P O Alindra, Tal. SavliCity:Baroda DistrictState:GujaratPincode:391775

Bhavnagar Chemical Complex,P O KalatalavCity:BhavnagarState:GujaratPincode:364313

Nirlife Pharma Complex,Survey No. 358-369,Village Sachana,City: Ahmedaba DistrictState:GujaratPincode:382150

Financial Aspects

Balance Sheet of Nirma ------------------- in Rs. Cr. -------------------

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Mar '13 Sep '12 Mar '11 Mar '10 Mar '09

6 mths 18 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 104.28 104.28 79.57 79.57 79.57

Equity Share Capital 79.57 79.57 79.57 79.57 79.57

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 24.71 24.71 0.00 0.00 0.00

Reserves 2,848.81 2,691.28 2,752.40 2,687.32 2,521.47

Net worth 2,953.09 2,795.56 2,831.97 2,766.89 2,601.04

Secured Loans 691.51 567.81 875.03 751.97 1,048.12

Unsecured Loans 847.32 769.14 86.43 209.47 66.84

Total Debt 1,538.83 1,336.95 961.46 961.44 1,114.96

Total Liabilities 4,491.92 4,132.51 3,793.43 3,728.33 3,716.00

Mar '13 Sep '12 Mar '11 Mar '10 Mar '09

6 mths 18 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 5,030.02 5,012.07 4,537.65 4,298.4 4,048.53

Less: Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Less: Accum. Depreciation 2,966.88 2,848.28 2,723.74 2,382.32 2,129.59

Net Block 2,063.14 2,163.79 1,813.91 1,916.11 1,918.94

Capital Work in Progress 272.36 210.69 179.78 279.24 243.08

Investments 953.73 975.73 541.52 535.73 539.77

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Inventories 1,045.23 1,019.11 734.81 592.15 600.27

Sundry Debtors 565.52 488.11 316.24 269.28 250.49

Cash and Bank Balance 21.95 32.78 62.60 11.01 13.09

Total Current Assets 1,632.70 1,540.00 1,113.65 872.44 863.85

Loans and Advances 811.35 506.63 867.08 830.85 725.12

Fixed Deposits 0.00 0.00 1.33 81.28 200.50

Total CA, Loans & Advances 2,444.05 2,046.63 1,982.06 1,784.57 1,789.47

Deferred Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 1,205.15 1,229.18 647.93 637.85 639.98

Provisions 36.21 35.15 75.91 149.47 135.28

Total CL & Provisions 1,241.36 1,264.33 723.84 787.32 775.26

Net Current Assets 1,202.69 782.30 1,258.22 997.25 1,014.21

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 4,491.92 4,132.51 3,793.43 3,728.33 3,716.00

Contingent Liabilities 2,034.32 1,806.89 2,319.74 2,166.09 2,151.66

Book Value (Rs) 184.01 174.11 177.95 173.86 163.44

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Financial Ratios of Nirma

Mar '13

Sep '12 Mar '11 Mar '10 Mar '09

Investment Valuation Ratios

Face Value 10.00 5.00 5.00 5.00 5.00

Dividend Per Share -- -- -- 4.50 4.00

Operating Profit Per Share (Rs) 24.43 56.93 26.71 37.05 32.35

Net Operating Profit Per Share (Rs)139.7

1391.57 203.68 195.79 190.51

Free Reserves Per Share (Rs) -- -- 149.96 145.31 135.60

Bonus in Equity Capital -- -- -- -- --

Profitability Ratios

Operating Profit Margin(%) 17.48 14.53 13.11 18.92 16.98

Profit Before Interest And Tax Margin(%) 10.85 7.63 3.38 9.60 8.83

Gross Profit Margin(%) 11.20 7.70 3.41 9.69 8.92

Cash Profit Margin(%) 13.66 11.42 12.27 16.44 14.40

Adjusted Cash Margin(%) 13.66 11.42 12.27 16.44 14.40

Net Profit Margin(%) 7.57 -0.97 2.26 7.56 3.05

Adjusted Net Profit Margin(%) 7.57 -0.97 2.26 7.56 3.05

Return On Capital Employed(%) 7.12 13.03 3.74 8.91 8.05

Return On Net Worth(%) 5.93 -2.20 2.61 8.59 3.58

Adjusted Return on Net Worth(%) 5.93 10.57 3.08 8.30 7.55

Return on Assets Excluding Revaluations184.0

1174.11 177.95 173.86 163.44

Return on Assets Including Revaluations184.0

1174.11 177.95 173.86 163.44

Return on Long Term Funds(%) 8.39 13.03 4.06 9.58 9.40

Liquidity And Solvency Ratios

Current Ratio 0.99 1.62 1.51 1.18 0.99

Quick Ratio 1.13 0.81 1.70 1.42 1.37

Debt Equity Ratio 0.53 0.49 0.34 0.35 0.43

Long Term Debt Equity Ratio 0.30 0.49 0.24 0.25 0.22

Debt Coverage Ratios

Interest Cover 4.34 2.83 2.88 6.26 5.11

Total Debt to Owners Fund 0.53 0.49 0.34 0.35 0.43

Financial Charges Coverage Ratio 6.24 5.07 8.79 11.18 7.60

Financial Charges Coverage Ratio Post Tax 5.25 2.92 8.48 10.48 5.72

Management Efficiency Ratios

Inventory Turnover Ratio 2.13 6.70 7.47 8.62 9.23

Debtors Turnover Ratio 4.22 15.49 11.07 11.99 12.99

Investments Turnover Ratio 2.13 6.70 7.47 8.62 9.23

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Fixed Assets Turnover Ratio 0.45 1.26 0.80 0.81 0.84

Total Assets Turnover Ratio 0.50 1.53 0.97 0.95 0.92

Asset Turnover Ratio 0.52 1.57 0.86 0.84 0.90

Average Raw Material Holding -- -- 58.26 49.97 40.59

Average Finished Goods Held -- -- 24.78 25.03 24.21

Number of Days In Working Capital255.8

767.79 139.74 115.22 120.43

Profit & Loss Account Ratios

Material Cost Composition 43.55 48.02 47.54 43.96 48.91

Imported Composition of Raw Materials Consumed

12.29 16.57 17.65 16.84 19.75

Selling Distribution Cost Composition -- -- 16.24 16.36 15.11

Expenses as Composition of Total Sales 5.90 8.62 7.14 5.91 5.08

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit -- -- -- 35.10 79.80

Dividend Payout Ratio Cash Profit -- -- -- 15.89 22.05

Earning Retention Ratio100.0

0-- 100.00 63.66 62.08

Cash Earning Retention Ratio100.0

0100.00 100.00 83.86 83.11

Adjusted Cash Flow Times 4.91 1.86 2.39 1.86 2.53

Mar '13

Sep '12 Mar '11 Mar '10 Mar '09

Earnings Per Share 10.93 -3.84 4.65 14.95 5.86

Book Value184.0

1174.11 177.95 173.86 163.44

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STAKEHOLDERS

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