Dr. Karsan Bhai Patel
Founder,
Nirma Group
The
name 'Dr. K.K. Patel' may not instantly ring a bell for many of our
generation. And, for obvious reasons: because it represents a person who
has always relied on industry and simplicity. But, if one were to dig a
little deep, one will be amazed, in fact almost intrigued, to know that
it is none other than the man who has to his credit the remarkable
achievement of single-handedly, literally, starting a venture, Nirma,
which went on to become a house-hold name for a quality yet affordable
detergent throughout the country in very little time since its
inception. Dr. Patel is an example, in flesh and blood, of what one can
do with a little window of opportunity if one puts together one's
vision, education, hard work, determination, and of course -being at
the right place, at the right time, and doing the right thing.
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Birth of the Spark
It
is, may be, the power of humble beginnings that quite often spurs
people on to greater things, who without much care or concern for the
outcome, just go about their chosen path and create their own space and
shape their destiny. Dr. Karsanbhai Khodidas Patel's saga -it is no
less than one- is one of the most cited examples of the spirit of
enterprise which brought him unprecedented success, and which has since
become a part of entrepreneurial folklore.
Dr.
Patel was born into a farmer family from north Gujarat in 1945, and by
the time he was 21 years of age he had already taken up employment,
after having finished his B.Sc. in Chemistry. His first stint was to
work as a lab technician in the New Cotton Mills, Ahmedabad, of the
Lalbhai group, and then at the Geology and Mining Department of the
state Government.
Perhaps
it was scripted that the son of a farmer, instead of treading along in
the family occupation, saw beyond the limitations of a middle-class life
and the vagaries therein, and willed to make it big -not just for
himself but for hundreds and thousands of others- in a field that was
under the monopoly of giant multinational companies. The thought
of quitting a government job which was to secure livelihood for himself
and his family for something which had the makings of a very costly
adventure if things didn't turn out as planned, especially for a man
whose family had never been into anything like that, was fraught with
fear of failure. But once he was sure of what he wanted to make of
himself, and was clear of his vision, he never so much as even wince
after that. He had a keen eye, and was quick enough to analyze the
scenario and gauge the potential of the field. But, however courageous
one may be, one still requires exercising prudence. That is exactly what
Dr. Patel did. He continued with his job, and proceeded with his
entrepreneurial instincts only as an after-job activity.
He
started it off with selling about 15 -20 packets of handmade yellow
detergent, door-to-door on a cycle in the neighborhoods (Kishanpur) and,
eventually, in the bustling lanes and by-lanes of Ahmedabad. He was
testing the waters and was only hoping that he sold some of his produce.
But he was secretly confident of the success of the detergent powder,
with quality at a low price as its USP, and its indigenous formula which
was phosphate-free, thus making it environment-friendly too. It has to
be said that though knew that this was what distinguished his product
from others, he could not have imagined that his product was soon going
to revolutionize the detergent industry and even fire the imagination of
the multinationals. At Rs. 3 per kg, it was priced at only a fraction
of the popular brands of detergents that were available in the market
back then. It was an instant success. Consumers welcomed with open arms a
product that offered the quality of the other brands yet was
considerably cheaper.
And
it went on like that for quite some time, and in 1980, when he was
reasonably confident, Dr. Patel started a small workshop in a suburb of
Ahmedabad, naming it after his daughter Nirupama, as 'Nirma.'
Nirma
soon established itself as a brand to reckon with in Gujarat, and
started spreading its wings into the neighboring state of Maharashtra.
The journey
It
would be very easy to jump the gun and say that with a top quality
product at the lowest possible price, it would have been a cake-walk for
Dr. Patel and his team to penetrate the market countrywide. But then,
in the midst of such competition as was prevalent, it required some
thinking and smart moves. Dr. Patel quickly seized this fact, and soon
came up with a marketing strategy to connect with the psyche of the
Indian middle-class housewives. The adverts with catchy and striking
jingles also helped Nirma make its way into the hearts of the millions
of women who comprised this very important target segment and, within a
decade, became the largest selling detergent in India. It was able to
create a new market segment in the economy for detergents. The success
and popularity of Nirma, and indeed its market penetration, had caught
many MNCs unawares. So much so, that they found it difficult to contend
with so much competition coming from such an unexpected and, unknown
entity. They had to buck this trend. So what they did - come up with
so-called economic brands of their own, seemingly to wrest back the
market hold. But such endeavors did not succeed greatly, as Nirma had
deeply and firmly embedded itself in the minds of Indian women as the
best 'Indian brand.'
It
would have been naïve to think that this position of strength in the
market will hold good forever. A lot of effort had to put in to sustain
its growth and success. Dr. Patel was conscious of this fact and so he
led the company onto a path of consolidation. This was to come from
newer and target-specific line of products in the premier segment, which
were -admittedly- not intended to eat into the market share of the
competing brands, but rather to stay true with the traditions of the
Nirma group - that of top quality at the most affordable prices. So,
came about Super Nirma detergent, Nirma bath and beauty soaps, which
have been able to, slowly but surely, make their presence felt in the
super-competitive beauty soaps segment. It must be recorded here for
posterity that, although the Nirma-effect seems to be waning in the 21st
century, the flutter and the accompanying euphoria it created while the
Nirma-revolution was in full-swing across the country, was
unprecedented, and hasn't been matched by any other brand or product
even, since.
It
wasn't as if Dr. Patel met with success all the time. When the group
was into expansion mode, it also ventured into the shampoo and
toothpaste segment along with the salt segment. But, the market, in
connivance with time, so-to-say, has its own way of keeping its
equilibrium. So, while Shudh, the Nirma brand of salt, has been able to
stay afloat reasonably well, the presence of Nirma in the other two
segments is nothing much to write home about. Despite such minor
failures, nevertheless, Nirma is now one of India's leading consumer
products and chemical companies; the company which has 6 manufacturing
units sells its soaps and detergents through a network of 400
distributors and about two million retail outlets across the country. In
2004, showing a keen sense of strategic thinking, the company under Dr.
Patel's astute leadership, diversified its operation into other
segments like linear alkyl benzene, soda ash, and pharmaceuticals. Its
foray into pharmaceuticals kicked-off with the acquisition of an IV
fluid factory in Ahmedabad. It also went on to acquire the U.S.-based
Searle Valley Minerals, thus becoming one of the top producers of soda
ash in the world. The company that started-off, in 1969, as a one-man
operation, today has 14000 employees and a turnover of Rs. 2500 crores.
It is no wonder then that, despite the ever-increasing competition in an
evolving market-economy, Nirma, which listed on the Indian Stock
Exchanges in 1994, has a 20% share in soap cakes and about 35% in
detergents markets, besides running successful operations in neighboring
countries (Joint Venture with Commerce Overseas Ltd., of Bangladesh
being just one example).
Strategic Thinking
One
of the major decisions of the Nirma Group under Dr. Patel's leadership
was the backward integration approach to be adopted by it. So, the group
set-up two raw materials manufacturing companies, one in Baroda, and
another in Bhavnagar, whose institution was completed in record-time and
well within the estimated budgets. In addition, the company also
embarked upon applying latest technology for its manufacturing plants
with technology sourced from the USA (IOP Inter Americana for paraffin)
and Holland (Akzo Nobel Engineering for soda ash) respectively. It also
went in for in-house printing and packaging as opposed to outsourcing
the processes. This, coupled with the acquisition of Kisan Industries
at Moriya, Ahmedabad, definitely gave a fillip, at the time, to the
growing revenues of the company. This phase also saw the company relying
heavily on an effective and wide distribution network and eliminating
some intermediaries who were believed to be surplus in the scheme of
things.
Other ventures
Dr.
Patel had, very early into his entrepreneurial activity, recognized the
significance of having on board top talent in order to continually keep
up the company objectives. Therefore, to withstand global competition
as also to meet the need for quality professionals, he founded the Nirma
Institute of Technology (Ahmedabad) in 1995, which grew into a leading
engineering college of Gujarat. Soon an Institute of Management
followed, with the entire structure being consolidated under the Nirma
University of Science and Technology in 2003. The Nirma Education and
Research Foundation (NERF) was constituted in 1994 to oversee the smooth
functioning of these institutes as well to ensure conformity to the
long-standing ideals of the group. Thereafter, in 2004, the group came
out with an education project, Nirmalabs, that was aimed at training and
incubating entrepreneurs.
These
initiatives are nothing but an extension of the self of Dr. K.K. Patel,
who has imbued his values into everything that the group undertakes:
the unflinching resolve, determination, self-reliance, diligence,
business acumen, being sensitive to the market-dynamics, and innovation.
The group business is always driven by one fundamental principle -
'value-for-money.' These institutes of higher learning have furthered
the cause of education in Gujarat, and have been churning out top
professionals not only for Gujarat but the Indian industry as a whole.
In
recognition of his ability, acumen, and wisdom he was entrusted to lead
many an organisation of national importance. And he hasn't disappointed
in that sphere as well, and has rendered services in various capacities
to the best of his ability, and invariably, to the satisfaction of one
and all. Some of the roles he has assumed in addition to being the
inspirational leader of the Nirma group were that of being the Chairman
for two terms to the Government of India's Development Council for soaps
and detergents, as a Member of Bureau of Indian Standards Committee for
Soaps and Detergent Industries, and the President of Gujarat Detergent
Manufacturers Association.
Family incumbents
Dr.
Patel has two sons, Rakesh K Patel & Hiren K Patel, and a
son-in-law, Kalpesh Patel, to carry forward his legacy. Mr. Rakesh is an
MBA and looks after procurement and logistics, while Mr. Hiren Patel
has a chemical engineering as well as an MBA, and heads the marketing
and finance departments. Mr. Kalpesh looks after the human resources as
indeed the healthcare segment (Nirlife) of the group.
Philanthropy
Besides
the several educational institutes and research labs which are run
under the umbrella of the NERF, the Nirma Group also runs the Nirma
Memorial Trust, the Nirma Foundation, and the Chanasma Ruppur Gram Vikas
Trust as a part of their efforts as a socially responsible corporate
entity.
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Dr. Karsanbhai Patel is a recipient of various awards and accolades. He has been bestowed with
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Quotes
"The
lack of any such precedent in my family made the venture fraught with
fear of failure. But farmers from North Gujarat are known for their
spirit of enterprise."
"Dar ke age Jeet Hai (Beyond the fear lies the victory)."
"We have talent, money power, and yet we suffer because we are not united."
"If
Sardar Patel was alive today, he would have felt sorry to see such a
weak society. There is no need for anyone to be afraid of anybody."
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| Hope viewers caught up the spark... |
1 comment:
YES I CAUGHT THE SPARK
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