PIONEER INSTITUTE OF PROFESSIONAL

STUDIES, INDORE (M.P.)

SESSION
(2014-2015)
A
PRESENTION
SWOT
on
NIRMA PVT. LTD

SUBMITTED TO:
Prof. VARUN KESHARI

PRESENTED BY:
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

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Company Profile
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'.
Type

Private

Industry

Fast-moving
consumer goods

Founded

1969

Headquarters

Ahmedabad,
India

Key people

Karsanbhai Patel
(CMD)

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

Sulphonates, Fatty Acids, Oxygen etc.
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 patels
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

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Mergers/Alliances/Takeovers

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:Ahmedabad
State:Gujarat
Pincode:380009
Email ID:investors@nirma.co.in
Web Url:http://www.nirma.co.in
Factory/plant:
Block No. 16/B,
Ahmedabad Mehsana Highway,
P.O. Mandali
City:Mehsana District
State:Gujarat
Pincode:382732
Wind Farm Project,
Survey No. 691,
Village - Dhank,
City:Rajkot Dist.
State:Gujarat
Pincode:0
Village - Moraiya,
Post Chancharwadi Vasna,
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Near Modern DenimCity:Ahmedabad District

State:Gujarat
Pincode:382213
Alindra Detergent Complex,
P O Alindra,
Tal. Savli
City:Baroda District
State:Gujarat
Pincode:391775
Bhavnagar Chemical Complex,
P O Kalatalav
City:Bhavnagar
State:Gujarat
Pincode:364313
Nirlife Pharma Complex,
Survey No. 358-369,
Village Sachana,
City: Ahmedaba District
State:Gujarat
Pincode:382150

Financial Aspects

Balance Sheet of Nirma

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------------------- in Rs. Cr. -------------------

Mar '13

Sep '12

Mar '11

Mar '10

Mar '09

6 mths

18 mths

12 mths

12 mths

104.28

104.28

79.57

79.57

79.57

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

5,030.02

5,012.07

4,537.65

4,298.4

4,048.53

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

1,045.23

1,019.11

734.81

592.15

600.27

565.52

488.11

316.24

269.28

250.49

12 mths

Sources Of Funds
Total Share Capital
Equity Share Capital

Application Of Funds
Gross Block
Less: Revaluation Reserves

Inventories
Sundry Debtors

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Cash and Bank Balance

11.01

13.09

1,113.65

872.44

863.85

506.63

867.08

830.85

725.12

0.00

0.00

1.33

81.28

200.50

2,444.05

2,046.63

1,982.06

0.00

0.00

0.00

1,205.15

1,229.18

647.93

637.85

639.98

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

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

184.01

174.11

177.95

Total Current Assets

Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deferred Credit
Current Liabilities
Provisions

Miscellaneous Expenses

Book Value (Rs)

Financial Ratios of Nirma

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21.95

32.78

62.60

1,632.70

1,540.00

811.35

1,784.57
0.00

0.00

173.86

1,789.47
0.00

0.00

163.44

Mar
'13

Sep '12

Mar '11

Mar '10

10.00

5.00

5.00

5.00

Mar '09

Investment Valuation Ratios

Face Value
Dividend Per Share

5.00

--

--

--

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
1

391.57

203.68

195.79

190.51

Free Reserves Per Share (Rs)

--

--

149.96

145.31

135.60

Bonus in Equity Capital

--

--

--

--

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

--

Profitability Ratios

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

174.11

177.95

173.86

163.44

174.11

177.95

173.86

163.44

8.39

13.03

4.06

9.58

9.40

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

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

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

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

Return on Assets Excluding Revaluations

Return on Assets Including Revaluations
Return on Long Term Funds(%)

184.0
1
184.0
1

Liquidity And Solvency Ratios

Debt Coverage Ratios

Management Efficiency Ratios

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255.8
7

67.79

139.74

115.22

120.43

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

--

--

16.24

16.36

15.11

5.90

8.62

7.14

5.91

5.08

--

--

--

35.10

79.80

--

--

--

15.89

22.05

--

100.00

63.66

62.08

100.00

100.00

83.86

83.11

4.91

1.86

2.39

1.86

2.53

Mar
'13

Sep '12

Mar '11

Mar '10

Earnings Per Share

10.93

-3.84

4.65

14.95

5.86

Book Value

184.0
1

174.11

177.95

173.86

163.44

Number of Days In Working Capital

Profit & Loss Account Ratios

Selling Distribution Cost Composition

Expenses as Composition of Total Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit
Dividend Payout Ratio Cash Profit
Earning Retention Ratio
Cash Earning Retention Ratio
Adjusted Cash Flow Times

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100.0
0
100.0
0

Mar '09

STAKEHOLDERS

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