Karsanbhai Patel

Dr. Karsanbhai Khodidas Patel (b. 1945, Ruppur, Mehsana, Gujarat) is an Indian industrialist, founder of the Rs. 2500 crore (USD 500 mn)Nirma group with major interests in detergents, soaps and cosmetics. In 2005 Forbes listed his net worth as USD $640 million. He has interests in education, and founded a leading engineering college, the Nirma Institute of Technology. He is sometimes referred to as Dr. K.K. Patel.Karsanbhai Patel is the founder of a successful brand, Nirma. He is a son of a farmer.

Early Life:

• Karsanbhai Khodidas Patel (K.K. Patel) came from a humble farmer family from Mehsana, Gujarat.
• Karsanbhai finished his B.Sc.
• He worked as Lab Assistant in the Geology and Mining Department of the Government of Gujarat
• In 1969, at the age of 25, Karsan Bhai Patel started a small-scale enterprise

Start of a Giant Venture:

• After three years, Karsanbhai felt confident enough to quit his job.
• So he thought of starting a small Business.
• Since he is a chemistry student he thought to produce Detergents also there were no local players in India except some MNC’s.
• Karsanbhai Patel used to make detergent powder in thebackyard of his house in Ahmedabad.
• And then he will give the products by door delivery which increased the customer interaction.
• By door delivery he was able to get the feedback from the direct customers.
• Patel came up with the name Nirma, by his daughter name Nirupama.

Blossom of a Small company in to a Giant:

• He thought to capture the market by cut throat competition.
• So patel was able to give the detergent for just rupees 3 per kg which was priced rupees 13 per kg by other brands.
• He gave a money back guarantee with every pack that was sold
• Nirma revolutionized the whole detergent powder segment and in a short span of time created an entirely new market segment in the domestic detergent sector market.
• Nirma was made of an innovative formulation, which global detergent giants were later on compelled to emulate, it was phosphate free and hence environment friendly, and the process of manufacturing was labour intensive, which offered large scale employment.
• He offered a quality detergent powder, using indigenous technology, at a third of the prevailing price, without compromising on the product.

Growing Phase of Nirma:

• After establishing its leadership in economy-priced detergents, Nirma foray into the premium brand segment, in cakes and detergents was equally successful.
• It built up a 30% market share in the premium detergent segment and achieved a greater than 20% share in the premium soaps market.
  • In the 1980s nirma moved ahead of Surf , a detergent by HLL , to caputre a large market share.
  • Later, Nirma successfully entered in the premium segment of soaps and detergents.
  • Nirma went on to become the largest detergent and the second largest soap company in India. Nirma had more than 35% market share in the detergent segment and around 20 % market share in the toilet soap segment.The company got listed on the stock exchanges in the year 1994.
  • Nirma adopted backward integration strategy for the regular supply of raw materials, 90 % of which they manufacture themselves.
  • Nirma also gave due importance to modernization, expansion and up gradation of the production facilities. The company also made sure that it uses the latest technology and infrastructure.

Awards of Karsanbhai Patel

• Karsanbhai Patel has won many accolades on his way to success.
• The Federation of Association of Small Scale Industries of India, New Delhi, awarded him with the ‘Udyog Ratna’.
• The Gujarat Chamber of Commerce felicitated him as an ‘Outstanding Industrialist of the Eighties’.
• The Govt. of India twice appointed him Chairman of the Development Council for Oils, Soaps & Detergents.
• In 2001, Karsanbhai was awarded an honorary doctorate by Florida Atlantic University, recognizing his exceptional entrepreneurial and philanthropic accomplishments.
• Dr. Karsanbhai Khodidas Patel has been conferred with Padma Shri Award for the year 2010.The award will be formally conferred by the President of India Mrs Pratibha Patil.