By :-

1. DWARKESH GIRASE.

2. ASHISH GOSWAMI.

3. YASIN KACHCHHI.

To :-

PAYAL R DANDE.

SUPPLY CHAIN MANAGEMENT

OF

NIRMA LIMITED.

SUPPLY CHAIN OF NIRMA

LIMITED.

Nirma limited

Sourcing

Facilities

Inventory

Transportation

Information

pricing

FOUNDER:- Dr.Karsanbhai Patel

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 Injectables. Karsanbhai Patel,

a well known entrepreneur and philanthropist of

Gujarat, started Nirma as a one-man operation.

Introduction.

Better Products, Better Value, Better

Living(tagline)

Starting as a one-product, one-man outfit from a

100 sq ft room in 1969, Nirma became a very

successful company within three decades.

Today Nirma has over 15000 employees and a

turnover of over Rs. 3550 crores.

The company's mission to provide, "Better

Products, Better Value, Better Living" contributed

a great deal to its success.

By 1999, Nirma was a major consumer brand –

offering a range of detergents, soaps and

personal care products.

In 2004, Nirma's detergent approached 800,000

tonnes – one of the largest volumes sold in the

world – under a single brand 'NIRMA'.

In November, 2007, Nirma purchased the

American raw materials company Searles Valley

Minerals Inc. - making it among Top-7 Soda Ash

manufacturer in the world.

Products of Nirma limited –

Consumer Products –Soaps

Detergents

Edible Salt

Scouring Products

Industrial Products -LAB ( Linear Alkyl Benzene )

AOS ( Alfa Olefin Sulfonate )

Sulfuric Acid

Glycerin

Soda Ash

Pure salt

Vacuum Evaporated Iodized Salt

SSP ( Single Super Phosphate )

Sodium Silicate

Sourcing -

The robust network ensures the availability of various products at different retail outlets across the nation.

The Distribution channel is geared up to enhance trade relations, build up the retailer base by providing various benefits and incentives, organize and implement different activities to generate sales and manage numerous other programmes, schemes and activities concentrated towards business development.

Nirma adopted backward integration strategy for the

regular supply of raw materials,90 % of which they

manufacture themselves.

Nirma limited exhibits backward vertical integration

when it controls subsidiaries that produce some of the

inputs used in the production of its products.

Control of these three subsidiaries is intended to

create a stable supply of inputs and ensure a

consistent quality in their final product.

Facilities of Nirma Limited.

Soda ash plant

Linear alkyl benzene

plant(savli)

Packaging plant

Soap manufacturing

plant

Detergent

manufacturing plant

Edible salt

manufacturing plant

Industrial salt mfg.plant Others

PRODUCTION FACILITIES OF

NIRMA GROUP IN GUJARAT 1. Kalatalav Bhavnagar Gujarat –

Soda Ash, Detergent Powder & Cake, Toilet

Soap,Salt etc.

2. Alindra Baroda Gujarat –

Linear Alkyl Benzene, Detergent Powder & Cake etc.

3. Mandali Mehsana Gujarat -

Oleum, Sulphuric Acid, Fatty Acids, Alpha Olefin Sulphonate, Glycerin, Toilet Soap, Detergent Powder & Cake etc.

4. Moraiya Ahmedabad Gujarat –

Detergent Powder & Cake, Single Super

Phosphate,Packaging Plant etc.

5. Porbandar Gujarat –

Soda Ash.

6. Sachana Ahmedabad Gujarat –

Intravenous Fluids, Large Volume Parenterals (LVP),

Small Volume Parenterals (SVP), Medical Devices etc.

Inventory management -Basically done on three factors -

1.Demand Variability.

2.Lead time Variability.

3.Service Level.

Demand variability is basically changes observed in demands.

A lead time is the latency between the initiation and execution of a process.

Service level generally means up to what extent service is provided that is creating no out of stock condition.

Transportation facilities.

Bicycle (origin)

Autorikshaws(1st &

2nd

decade)

Mini Trucks(3rd

decade)

Large trucks and

railways

Outsourcing of logistics -

In 2001 – Nirma ltd Started F.T.L. division (full truck load)

with Vasant group

Distribution after Manufacturing

and packaging-

Depots

(3)

Distributors (2450)

Retailers

(2 million)

Consumers (300 million)

NCCL sells these products in the market under

umbrella the brands “NIRMA” and “NIMA” along

with extensions.

The distribution strength of Nirma is based on mutually rewarding and satisfying relationship.

Nirma pioneered the concept of flat distribution network. Nirma Consumer Care Limited operates with two parallel distribution networks. The NIRMA brand is marketed through the first network, which consists of about 450 exclusive distributors. It is one of the lowest cost FMCG distribution channels of the country.

The NIMA range of products is marketed through a parallel marketing network that comprises of more than 2000 distributors.

Information Management - Basically uses two types of technologies –

1. ECM Tech.

2. WIRK Systems.

Enterprise Content Management (ECM) is the strategies, methods and tools used to capture, manage, store, preserve, and deliver content and documents related to organizational processes. ECM covers the management of information within the entire scope of an enterprise whether that information is in the form of a paper document, an electronic file, a database print stream, or even an email.

Waste Inventory Record Keeping Systems is the system to keep records of waste inventory.

Pricing -Detergents – with 10 % and 11.5% discounts for

retailers and distributors respectively.

Rs 34.50 for 1kg

Edible Salt -

Rs 18 for 1kg

Scouring Products -

Rs 30 to Rs 40 for 500gm

Soaps -

Rs 3 to Rs 10 for 75gm

Success behind the supply

chain of Nirma limited.

While introducing toilet soaps and detergents in the

premium segment, Nirma relied on its time-tested

weapon – Price.

The company planned to concentrate on volumes in

these segments as well. But there was a change in

the margins given to retailers.

Unlike the economy products, where the cost benefits

were passed on to the consumers, Nirma passed on

this benefit to the retailers.

It gave them huge margins. For instance, for Nirma

premium soap, it offered 52% and for Nirma

shampoo, it offered an unbelievable margin of 140%.

Initially, the advertising spend of the company was

very low, as compared to other FMCG companies.

Nirma spent only 1.25-2% of its turnover on

advertising as compared to the normal 6-10%.

For endorsing soaps, the company used starlets like

Sangeeta Bijlani, Sonali Bendre, and Riya Sen, who

were relatively unknown at that time.

The advertisement messages were also very simple

and focused on the benefit of the product.

Nirma always preferred to place the product on the

shelves first, receive feedback, and then create an

enduring ad campaign.

SWAT ANALYSIS -Strengths -1.Robust supply chain.

2.Nirma has distribution at over 2 million retailers and approx 300 million consumers.

3.Over 14000 employees work with Nirma.

4.low cost of products.

Weakness -1.Market share is limited due to presence of other strong FMCG brands.

2.Nirma has limited international presence as compared to other leading FMCG companies.

Opportunities -

1.Tap rural markets and increase penetration in urban areas.

2.Mergers and acquisitions to strengthen the brand.

3.Increasing purchasing power of people thereby increasing demand.

Threats -

1. Intense and increasing competition amongst other FMCG companies.

2.FDI in retail thereby allowing international brands.

3.Competition from unbranded and local products.

Final statement.

The best case of - Give your consumer what he

wants, when he wants, where he wants and at the

price he wants, selling will be done quite

automatically.

Financials Total Income - Rs. 44419.3 Million ( year

ending Mar 2014)

Net Profit - Rs. 4012 Million ( year ending Mar 2014)

THANK YOU.