Anda di halaman 1dari 89


YEAR YEAR CLASS CLAS : : : : TY B..B.A T B 122 1 2








I undersigned Miss. Abcdefghijkl a student of the First Year of B.B.A. here by declare that this project work presented in this report is of my own work and carried out under supervision and guidance of the This project has not been submitted previously to any other university for examination or any other university for examination or any other purposes.

_______________ Abcdefghijkl

Date : Place : Rajkot.


World is widening up and we are not confirmed to just one place. We all have to pace with the rest of the world to compete.

As a B.B.A. is a course, which specially designed to meet the needs of the managing sector for managing a world. And for this one has to be sharp, combining, possessing, good managerial skills, smart and talent to compete the world.

As a part of a curricular, a student of a B.B.A. has to visit a well managed industry and then prepare a project report on different department of the visited industry like General, Personal, Production, Finance, and Mar keting. Which presents a overview of business concern.

So as a part of my studies being a B.B.A. of First Year; taking this great opportunity to visit an industry I visited NIRMA LIMITED and I have tried my level best to represent a project in front of you out of the relevant information I gate from the company.


It is my pleasure to present this report. I thank all who helped me to get the necessary information regarding my project.

The project undertaken of such nature inv ites lot of intellectuality, professionalism, guidance, and encouragement from all diverse background. I express my deep guide to my guider for his valuable guidance, inspiration through the study work.

I am also thankful to my family, lecturer, principal , friends and the staff of the Nirma Limited Bhavnagar who co -operated us at the time of the visit.

Last but not least, would like to express my whole hearted thanks to all those who have directly or indirectly helped me to complete this project report .

___________ Abcdefghijkl

Place: Rajkot. Date:



Index Introduction History And Development Company Profile Organization Chart Size of the Unit Form of Organization Location of Unit Time Keeping System Index Introduction Products of the company Row Material Manufacturing Process Quality Control Quality Policy Organization Chart Production Capacity Types of Machine Index Introduction Organization Chart Recruitment and Selection Human Resource Planning Placement and Induction Wages and Salary Administration Training and Development Promotion and Transfer Performance Appraisal System

00 01 02 03 04 05 06 08
09 10 11 12 13 14 15 16 18


20 21 22 23 24 28 29 30 31 32


34 35 36 37 39 40 41 42 43 44

Health and Safety Policy Personnel Policy Industrial Relation Provident Fund Scheme Other Facilities Index Introduction Organization Chart Market Segmentation Advertising Sales Promotion Competitors Marketing Research Pricing Policies International Marketing Strategies related to production Channel of Distribution Index Introduction Organization Chart Financial Planning Profit & Loss Account Balance Sheet Capital Structure Working Capital Ratio Analysis

45 46 47 48 49


52 53 54 55 56 57 58 59 60 61 62 63


65 66 67 68 69 70 71 72 73



75 77 79 81 83 85 87



Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. Particular Page No. 10 11 12 13 14 15 16 18

Introduction History And Development Company Profile Organization Chart Size of the Unit Form of Organization Location of Unit Time Keeping System



India is one of the largest consumer economies, with more number of a middle class people. In such a widespread, diverse market place, Nirma aptly concentrated on all its efforts towards creating and building a strong consumer preference towards its Value for Money Products.

It was a back in the 60s and 70s century where the domestic detergent market ha d only premium segment, with very few players and was dominated by MNCs. It was 1969 when Karshanbhai Patel started door to door selling of the own manufactured product. Detergent power priced at an astonishing rate of Rs. 3.00 for a 1 Kg. powder; where else cost of the other cheapest brand was Rs. 13 which differentiate the price by Rs. 10 high of the competitors. Product was launched with an innovative, quality

product with a indigenous process, and low profiled packing also the marketing. It changed the habit of the housewives for washing powder for washing clothes.

In a short spam, Nirma created an entirely new market segment in domestic marketplace. Which is eventually largest consumer packet and quickly emerging a position which it has never since relinquished? Nirma became a one of the widely discussed success stories between the four walls of the B School classroom across the world.


- 10 -

In scorching heat of 1969, a son of small timer former was trying to mix soda ash and few other intermediaries to make a detergent powder as qualification he is graduated in science and was working as junior chemist in government laboratory. As a moonlight activity, he was making detergents in the 100 sq. ft. back yard of h is home, using bare hands an bucket once the mixture is ready he use pack them in a polythene bag and was doing door to door sealing. As the product became well accepted in the society it known to rest of is known to one and all. This is a success of saga of a first generation entrepreneur, on his way to create history in the Indian market that was Dr. Karshanbhai Patel.

Nirma it was named after a daughter of Dr. Karshanbhai Patel; Named Nirupama

Name of the Company:

Nirma Limited.
- 11 -

Registered Office:

Nirma House, Ashram Road, Ahmedabad 380 009.

Form of Organization: Size of Organization: Number of Employees : Location of Factory:

Public Limited. Large Scale. 14,000 Peoples. Kalatalav, Bhalpradesh, Bhavnagar.

Bard of Director:

- Hiren K. Patel. - Shrenik K. Patel. - Kalpesh A. Patel.

Company Secretary: Auditor: Banker: Investment: Market: Year of establishment: Chairman:

Shri Parekh Sheth. Hemanshu Shah & Company. HDFC and BOB. 2500 Cr. National and International. 1969 AD. K. K. Patel.

Acquired Quality Certificate: ISO 9000 9001. Main Products: Different Range of Products:

Detergent Powder. Soap, Detergent, Edible Salt, Sourcing Product and Some of Industrial useful products

Phone Number: Fax Number: Url: E Mail:

+ 91 79 27546565 / 74. + 91 79 27546603.


- 12 -

An organisation chart help in understanding the organisational relationship. That shows the grouping of major activities in the department and the min lines of authorities and responsibilities among the entire department.

Board of Director

Managing Director

Production Department

Marketing Department

Personal Department

Finance Department













Seeing from the companys organisation chart, we can say that NIRMA LIMITED follows Line Organisation structure; it is easy to understand and to maintain relation of employee to the other.

- 13 -


The size of the organization is important to discuss for any industries it is necessary to have proper place to do work proper. In India, generally the business unit is classified into three main categories on the bases of the size of the unit. Generally size of the unit is classified into following below mentioned size keeping the investment into the consideration: 1. Large Scale Industries Large Scale unit is one whose investment in assets is more than a 5 Cr. Rupees. 2. Medium Scale Industries Medium Scale unit is one whose investment in assets is between 3 to 5 Cr. Rupees. 3. Small Scale Industries Medium Scale unit is one whose investment in assets is less than 3 to 5 Cr. Rupees.

From seeing the standards of the differentiating a size NIRMA LIMITED can be considered in the sector of the large scale industries.

- 14 -


There are various types of organization. The below chart represents various forms of business organization are shown as under:

Sole Proprietorship

Co Operative Society Different Forms of Organization


Public Limited Company

Private Limited Company

NIRMA LIMITED is the pubic limited company, which comes under companys act


- 15 -

Industry is an activity which converts raw material and semi finished goods in to finished goods for sale. Industrial organization means the combination and co -

ordination of capital, labors, machinery and raw mater ials, the success of business depends on the process of organization and planning.

The consideration of these factors requires careful analysis because the location once chosen, cannot be changed often, frequent changes in location of an industry is determined by taking in to consideration of the following factors.

(A) Primary Factors (1) (2) (3) (4) (5) (6) Supply of Raw Material Nearness to Market Transport Facilities Labors Supply Availability of power Supply of capital

(B) Secondary Factors (1) (2) (3) (4) (5) (6) (7) (8) Facilities Nature factors Political Factors Government Subsides and facilities Historical and religious factors Initial start and goodwill Personal factors Miscellaneous Factors

- 16 -

On seeing of it NIRMA LIMITED has setup its factory at; Nirma Chemicals Limited, Bhal District, Kalatalav, Bhavnagar.

This place is not so far or so near to the city. It is just 14 km away from the Bhavnagar city in a well location area.

- 17 -


Time keeping system is very essential for the regulation of employees & for maintaining the productivity of the unit.

In NIRMA LIMITED Time for all the level of staff is as follows as per its working place:

For Office Staff:

09:00 AM To 12:00 PM 02:00 PM To 05:00 PM

For Workers:

08:00 AM To 05:00 PM 05:00 PM To 12:00 AM 12:00 AM To 08:00 AM

Every worker has to give its present time and leaving time to the in charge and make it register on the attendance sheet.

NIRMA LIMITED is very punctual in time; company is working its workshop for 24


- 18 -

- 19 -

Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Particular Page No. 21 22 23 24 28 29 30 31 32

Introduction Products of the company Row Material Manufacturing Process Organization Chart Quality Control Quality Policy Production Capacity Types of Machine

- 20 -

NIRMA LIMITED have got good production unit, it have two factories in the


Company has good infrastructure facility of the factory for the production. It has different production plants well infrastructure for the production of soda as, linear alkyl Benzene, packaging, sops, detergent and the industrial salt.

Production means the conversion of row material in to finished productions wi th the help of certain processes - Philip Kotler

Production is a process by which goods services are create. - E. S. Buffa

- 21 -


Consumer Products

Industrial Products

LAB ( Linear Alkyl Benzene ) AOS ( Alfa Olefin Suffocate ) Sulphuric Acid Glycerine Soda Ash Pure salt Vacuum Evaporated Iodized Salt SSP ( Single Super Phosphate ) Sodium Silicate

- 22 -

There is various row material used in the Nirma Company that is different to the e ntire product like.

Spend Acid Hard Water Soda Ash Yellow Colour Aos Salt and other chemical

Bath Soap
Pam Oil RD Oil PK Oil D.F.A Glycerin Brim EDTA Ugater Caster

Detergent Cake
Palmate Salary Acid Silicate

- 23 -

 Nirma Salt
Nirma salt is manufactured the state of art production facility of the high capacity machine vacuum drying process.

Salt is manufacturing under of fully automatic process first chemical process for cleaning the water after words it has been vacuum drying process for where the liquid converts into material form and it has been saudh Iodized Salt. At last it helps of conveyer belt. It has been move to packing machine that is known as pack one machine its working capacity is 800 tons which produce 48 packets in a one minute. The package of 2 Kg are been made to manually activity.

Company having automatic facility in both of this unit is in Bhavnagar and Baroda etc.

- 24 -

 Nirma Detergent Powder And Cake

To produce the detergent powder following below mention row-material have been used:

 FOR DETERGENT CAKE Spend Acid Hard Water Soda Ash Yellow Color AOS Salt and other chemical

 FOR DETERGENT POWDER Palmate Salary Acid Scilicet Blue

- 25 -

Manufacturing Process for detergent powder and cake:

 FOR DETERGENT POWDER Detergent is manufacture two different type of detergent powder that is super Nirma washing powder and second is popular detergent washing powder.

The process of manufacturing is fully manual. First of spend Acid and hard water color eddies been mixed in reaction bubbles form his generated and on it soda ash, yellow color, salt and other chemical has been mixed and detergent powder has been produce.

Dudh si safedi Nirma se aye, Rangin Kapda bhi khil khil Jaye Sub ki pasand Nirma Washing powder Nirma This Jingle is used since last 35 years. To produce the detergent cake following below mention row -material has been used: - Palmate - Salary Acid - Scilicet

 FOR DETERGENT CAKE The material of washing soaps they some time are available as minced and from power but in prodder machine comprit process machine the soap to put in plants as 12 to 32 machines are available for packing 600 Ton production of Nirma Washing soap.

Type of the detergent Cake Blue Pink White Yellow

- 26 -

 Nirma Bathing Soaps

To produce the bath soap following below mention row -material has been used: Pam Oil R. D. Oil PK Oil Brim Edta Ugater

D.F.A (Distai Fatty Acid) Glycerin

Manufacturing Process

Nirma Company is manufacturing different fragrant of soaps like Nirma rose, sandal, pink and green etc.

Company is having high efficient machine imported from Italy, Some of the material are also been import from Malaysia.

To manufacture the soap row-material like Pam oil, RD Oil and P.K. Oil and some other chemicals proportion of Glycerin and D.F. A (Distai fatty Acid) is 76% and other is 24%

Type of Bath Shop

- Rose - Sandal

- Pink - Green
- 27 -

- White


Board of Director Managing Director Production Manager Operator Workers

- 28 -

Pushing ahead with grueling schedules, punishing deadlines and a raging desire to be beyond competition roles sets the bar high, for quality standards

Each stage of production at NIRMA LIMITED reflects a profound presence of excellence in quality.

To meet the most exacting requirements of the most demanding client, they have an array of sophisticated technology to ensure quality measuring instruments are used. The motive of the company is providing maximum satisfaction to their consumers.

- 29 -

Nirma is a customer focused committed to consistently affair better quality products & services that maximize value to the customers.

This shall be achieved through continuously explanting & developing new product & process.

~ 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 bas is. ~ Team work and active participation al around.

Demonstrating belongings and exemplary behavior to wards organization is goals and objectives.

- 30 -

The production capacity of the firm depends on the machine and the technology the firm uses

Production capacity defers product to product as per target per annual

Soda ash Vacuum Salt Clear Salt Pure Water

400000 275000 900000 2200

- 31 -

Types of Machines
1. Nirma Salt New Pacona Old Pacona Micro Pacona New Micro Pacona

2. Nirma Soap Plodder Wrapper Machine Stamping Machine

3. Nirma Washing Soap Plodder Mixture Packing Machine

- 32 -

- 33 -

Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Particular Page No. 35 36 37 39 40 41 42 43 44 45 46 47 48 49

Introduction Organization Chart Recruitment and Selection Human Resource Planning Placement and Induction Wages and Salary Administration Training and Development Promotion and Transfer Performance Appraisal System Health and Safety Policy Personnel Policy Industrial Relation Provident Fund Scheme Other Facilities

- 34 -

Manpower is heart of the business.

Personnel management involves planning, organizing, directing an d controlling the procurement, etc of the human resources in enterprise personnel management is the sub area of the general management. It is concerned mainly with manpower recourses. Humans have dynamic nature different person are having different nature, behavior, mentality etc.

Personnel management also gives such type of training & education to the employee. Personnel management gives such type of promotion to the employee.

Acc. to G. R. Terry; Personnel management is concerned with obtaining & maint aining of a satisfactory & satisfied work force

- 35 -


Board of Director

Managing Director

Personal Manager



- 36 -


Recruitment is the most important function of personnel department. It is process of reaching for prospective employee and stimulating encouraging them to apply for the job in the organization.

There are mainly two sources of recruitment. 1. 2. Internal sources external sources

Internal sources means to select the required person from the company it s elf. While external sources means to recruit the person from the outside the organization through advertisement. Employees agencies, other professionals.

External source are campus recruitment, contractors, placement centers, etc are used local are and local market recruitment of worker and labor with the help of contractor.

NIRMA LIMITED recruits the staff using both the method of but mostly through the

external source.  Minimum Qualification For staff selection For Production  Age Limit Minimum age limit is 21 Years and maximum is 58 Years as per govt. rule.  Type of worker or labor Skilled or Semi Skilled Experienced
- 37 -

= =

Graduation Graduation, ITI

Selection is the process of the choosing the right person for right job, which is from recruit of once.

Recruitment and selection proceeded of executive and export personal [mechanical engineer] is done at the head office of the Nirma Company.

- 38 -


Nirma not only make better product but also infuse the value which affect the perceived characteristic of the internal customer oriented environment of the organization.

Developing human resources is continues process at Nirma involving overseas training programmers on the job orientation for the trainees in house computer education and personality development sessions. The belief is that all this make an individual a better person which in turn leads to better productivity and a spirit of accountability and commitment in each member of the NIRMA LIMITED.

NIRMA LIMITED hires only the best people in their respective fields people with a

capacity to take on the challenges of realizing the Nirmas vision productive dynamic professionals with the expertise of the executive mega project would integrate Nirma into a conglomerate by providing the best in all the way.

- 39 -


After passing through the selection procedure on last stage placement takes place. Placement is a negative as well as positive process. It means to reje ct improbable candidates and to recruit a probable candidate from an applicant. Selecting and giving a job to the best one out of a applicants is a placement.

Thus placement is the determination of the job, which on accepted candidates is to be assigned and his assignment to that job an appropriate placement of a worker result in the reduction of employee.

In NIRAM LIMITED after the training is over the normally decides the final placement on the basis of performed and result output during the training.

Induction involves the introduction of an employee to the job and the organization. An employee has to operate with follow employees and his supervisor. Hence he must know them. Their way of working and also the policies and practices of the organization with this he can integrate himself with the enterprise. Any neglect in the area of the induction would result into high labor turnover waste of time and expenditure.

Thus NIRMA LIMITED follows formal indication procedure they talk about the history of the organization and short discus with a representative of the personnel who may narrate the benefits plans of the organization.

- 40 -


Wages and salary are given to the employee as reward for their contribution to the industries. Wages and salary administration refers to the establishment and implementation of sound policies and practices of employee compensation. Various wage acts and labors acts are used in order to determine the wage of the employees.

Wages can be paid according to two systems. These systems are:

I. II.

Time or Day Wage System. The Piece-wage System.

Payment made to labors is generally said as wages.

In NIRMA LIMITED, labors or workers are paid wages on the End of every month.

Salary means money paid periodically to persons whose output can not be easily measured such as clerical staff as well as supervisory and management staff.

In NIRMA LIMITED, these employees are paid salary on the end of every month. Payment of wages and salary is managed by personnel department.

- 41 -


Every organization needs to have trained and experienced employees to perform the activities to be done. Training and development of personnel is a follow - up of selection. It is an improvement and enhancement of different types of skill so that employees can perform their job effectively.

Training is a systematic program of organization aims at increasing the attitude, skills and abilities of worker to perform specific job. By training the employees will acquire new manipulating skills, technical knowledge, etc.

Training is the act of increasing the knowledge of employees for doing a specific job Thus increasing the knowledge and skills of employee for better performance on job.

There are two methods of training: - On the job training method. - Off the job training method.
NIRMA LIMITED trains the worker on the job. It means they give training to the

workers during a job to the selected candidates.

Company also gives other useful training to the workers which are useful during a working time like; - Safety Training. - Normal Training. - First Aid Training. Some of the higher levels executives are given training on external basis also i.e. they are sent on the training programs held in general by some association institutes or seminars.

- 42 -


The term promotion can be defined as A promotion is the advancement of an employee to get better in terms of responsibilities, more prestige or status, greater skill and especially increased rate pay of salary.

A promotion is a vertical move in rank and responsibilities. An upward advancement of an employee in an organization to another hob, which commands better wages, better status, higher opportunities, responsibilities, and authoritie s, better environment, hours of work and facilities.

In NIRMA LIMITED promotion of its employees and its staff is done on the basis of tow to three years experience. As the time of promotion they see performance of personnel in terms of attendances, regularity, skill, discipline, etc.

NIRMA LIMITED has different units in Gujarat. So for transfer sent from one

branch to other branch or from one department to other relevant department. So it can be said that company do internal transfer.

- 43 -


In the organization context performance appraisal is a systematic evaluation of performance by supervisors or other familiar with their performance. It is also described as merit rating in which one individual is ranked or marked in comparisons of other.

Performance appraisal is a systematic evaluation of the individuals with regard to his or her performance on the job and his potential for development

In NIRMA LIMITED performance appraisal is done by the head of department on the basis of performance appraisal report given by supervisor an appraisal grade is given to every year. If employees get confirmation from company on before 31 st march then that employee is eligible for getting appraisal system.

- 44 -


1) Productivity with safety is our motto safety and health aspects will be considered in process design selection of equipment and implementation of program. 2) Health and safety of the workers is an asset of the company continuous improvement in performance by training and rewarding will be ensured for maintaining a vigilant workforce. 3) Nirma will encourage our associates contractor and suppliers to implement safe and healthy parties in their establishment. 4) To fulfill our social responsibility will conduct programs, Seminars, Celebrations and put up hoarding to make the general public aware, so as react timely and intelligently in case of emergency. 5) Above all Nirma commit to fulfill all statutory provision under the guidance of regulatory agencies.

- 45 -

Personnel policies constitute guide to action. They give the general standard or basis which could give the decisions. Their genesis lies in value, Philosophy concepts and principles of an organization.

In word of Flippo A policy is man made rule or predetermined course of action that is established to guide the performance of work towards the organization objectives.

Thus NIRMA LIMITED follows general personnel policies. It is established for co ordination and control and for the sound industrial relations etc.

- 46 -

The expressions industrial relations are used to express the nature of relationships between the employer and employee in an industry or an organization. Where willing co-operation emanates from employees towards the achievement of organizational goals, there is said to be industrial relations. There are many causes which have led to poor industrial relations and there are conditions which can generate goods industrial relations. A correct perspective of the industrial relations position is possible on an appreciation of the stages of development through which a country has passed over a period of time to the present moment.

In NIRMA LIMITED the management and the employees maintai n a good industrial relation. They both understand each other and there is no incident of any such dissatisfaction or strike.

- 47 -


Provident fund schemes has been introduced in 1962 the government has made the law that any company must has to follow the provident fund scheme after the established of 5 years plan.

The main purpose of provident fund is to provide benefit to the employees by giving them certain amount of money at the time of retirement, marriage or in the cas e of accident or faces any type of defeat in this body

Under the act the employees provident fund and family person are same. In 1950 this act was passed and then it becomes compulsory to apply provident fund scheme.

NIRMA LIMITED employees basis salary is scheduled @ 12% before also payment

for provident fund.

- 48 -

Employees are important assets of a unit. So for better work performance they should be motivated. For this they should be given not only financial incentives b ut also non financial incentives and facilities.

NIRMA LIMITED is much concentrates on above facts and gives many benefits to their employees. The company undertakes the following welfare measure to motivate the workers.

In NIRMA LIMITED Two cups of tea/coffee are provided free of cost to all employees in each shifts. Lunch and snakes are being provided at subsidies rates at 350 Rs. per month.

 Medical Facility
In NIRMA LIMITED if any accident occurs that time they provide medical facilities. They also keep first aid box in company, so any small can be prohibited. Thus the company provides first air and medical expenses also.

In NIRMA LIMITED employees are provided privileged leave, casual leaves and sick leaves for the below mentioned days.

Privileged Leave for 24 days. Casual Leave for 7 days. Sick Leave for 7 days.
- 49 -

In NIRMA LIMITED workers are provided monetary facility at the time of requirement. Employees of the company are provided loans on the lower rate comparing to the market rate of interest.

 Transportation Facility
In NIRMA LIMITED pick up and drop facility is given to the workers. Companys bus service is available for it.

 Gift On Different Occasions And Festival

In NIRMA LIMITED Company provide gift on function and marriage. In marriage company provides a gift cheque of 1001 Rs. to the employee. And on festival sweets are been provided to the employees.

- 50 -

- 51 -

Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Particular Page No. 53 54 55 56 57 58 59 60 61 62 63

Introduction Organization Chart Market Segmentation Advertising Sales Promotion Competitors Marketing Research Pricing Policies International Marketing Strategies Related to Production Channel of Distribution

- 52 -

Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.

Philip Kotler defines a Market as an area for potential exchanges.

The process of marketing starts with identifying the customers needs and then developing a marketing program suiting the needs of the customer. Hence, customer is at the centre of any marketing plan. It involves the process of desig ning the products in such a way that it is acceptable to the consumers. Marketing includes four Ps of management i.e. product, price, promotion and place or physical distribution.

Generally in a small or medium scale unit the function of marketing is car ried out by the owners of business or the marketing manager. In the large scale industries different staff ate been recruited for the marketing.

In NIRMA LIMITED there is a different team working after the marketing its office is in Ahmedabad.

- 53 -


Board of Director Managing Director Marketing Manager Operator Workers

- 54 -

Market segmentation is sub dividing of the whole market in to different parts. Each part demand schedule and represents a group of buyer with similar needs an d features.

According to Stanton Market segmentation consists taking total of heterogeneous market for a product and dividing it into several sub markets to be reached with a distinct marketing mix.

The reason for segmenting the market that the market that the market for most product is heterogeneous but not, homogeneous. People have different needs and values there from a marketer can not desire maximum benefit from the analysis of market as whole.

There are several bases for segmentation the market w hich are as follows:  Geographic Segmentation  Demographic Segmentation  Psychographic Segmentation  Behavioral Segmentation In NIRMA LIMITED company is doing segmentation on the basis of demographic segmentation.

- 55 -

Advertising can be defined as. Paid communication of goods services or ideas by and identified sponsor. It is paid communication because the advertiser has to pay for the space in time in which his advertisement appears in recognized media such as Newspaper, Radio, Hoardings, Television, Mail or Internet.

With the help of advertising company can create the brand image into the market.

NIRMA LIMITED mostly advertises through newspapers, magazines and Television


- 56 -

Sales promotion is only short-term incentive to encourage purchase or sales of product & services means related with promotion of sales consist of a wide verity of promotional tools design to stimulate earlier & more customers.

And also most important of the promotion is the sale promotion is instruments achieve good marketing results it is the process of and activity of increasing the total sales of the firm.

To promote the product NIRMA LIMITED gives sales discount or offer during some interval to the clients and special high commission to the intermediaries achievement of the said prefixed target.

- 57 -

Todays world is full of competitions. It is very difficult to survive in this competitive world. To survive in this competitive world, the company should try to satisfy the needs of its customers by providing goods and services at reasonable cost. The company cannot compromise with its quality of goods.

As there is competition in the market it is very important for the company to satisfy it s customers to the fullest and to live up to their expectations.

NIRMA LIMITED also has many competitions in the market. Competitors of the

company are as follows: -


Lux, Hamam, Dove, Cinthol, Pears, Medimix, and Many More.


TATA Salt,


Ariel, Surf Excel, Tide, Wheel


Tide, Rin Supreme, Wheel

- 58 -

Marketing research is the systematic gathering recording and analyzing of data about problems concerned with market place.

i.e.: Problems relating market price, promotion and distribution. Marketing research is concerned with all those factors which have direct impact upon the marketing of products and service it is the study of any part of total marketing process.

According to AMA Marketing research is the gathering records and analyzing of account about various problems relating to the transfer and sales of goods, service from producer to consumer.

In NIRMA LIMITED marketing research plays an important role. They do marketing research through market fours via customers and dealers.

- 59 -

Price is an important element in the marketing strategy. Right selling price is essential for sound marketing. Right price can be determined through pricing research and by adopting the test market technique. A price policy is the standing answer to the firm to receiving problem of pricing. It also provides guidelines to the marketing manager to enclose appropriate pricing decision.

Decision about pricing is very important task in every organization. The pricing of the product is like Blood of the Body the organization has fixed policy of the price.

For E.g. Total Cost + Packing Cost + Profit = Net Price

NIRMA LIMITED gives the plan for the manufacturing of the project to different unit

and accordingly collects. The manufacturing cost data from the entire unit.

- 60 -

International or world marketing follows some basic principles as do mestic marketing. Marketing principles are common and are universally applicable. In any market firm needs blending of 4Ps of marketing (i.e. Products, Price, Promotion and Distribution). Firm must have well, promotion and proper distribution. Each market er must recognize the fact that the marketing environment varies from nation to nation, that forms state to state and country to other country.

NIRMA LIMITED consist international of the Middle East Asia i.e. China, Russia

and some of neighbor countries other then Asia it consist of African Countries.

- 61 -


There are so many strategies related production. Each company have different strategies related it some company can not give after sales service we can sal e they will not allow to their customer to change the product.

NIRMA LIMITED follows strategies which are as under.


Company should their brand name which is easy to remember to and it should not illegal A company brands is famous with the name of Nirma The Nirma Ltd. has rightly chosen its brand name as Nirma which is named on the name of NIRUPAMA a daughter the chairman Dr. Krshanbhai Patel which is very easy to remember and attractive.

After sales service

After selling a product the work does not over for on industry. They are also liable to give their customer after sales service Nirma also gives this type of facility to the customer, customer is not providing after sales service ion a product which is small. But in case of any fault or if there is any complain received from the customer then they all are given replacement at a same product.


Packing is also an important as produced the thing only production is not enough but they have to pack their product in attractive paper Nirma L td. packing is done as per requirement their customer. They also selling they product after packing in retail or as per the requirement of customer packing process place vital role the point of view the customer because same people purchase any product to get prestige in a society.

- 62 -

Distribution channel consists of sets of interdependent organization a product or service from the point of production to the user at the point of consumption. Hence it can be said that it is the distribution available in market for consumption purpose the route of channels of distribution includes the manufacture and consumer as well as all intermediaries.

The channel of distribution of NIRMA LIMITED is as follows:






- 63 -

- 64 -

Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. Particular Page No. 66 67 68 69 70 71 72 73

Introduction Organization Chart Financial Planning Profit & Loss Account Balance Sheet Capital Structure Working Capital Ratio Analysis

- 65 -

It is universally accepted that all economic activity is based on the purpose of earning. So be considering this we can say that money or finance is in the centre of the world without finance any industry is a selection having no life. Finance is like blood of any industry, organization or form.

The finance in a modern business world is the life blood of a business. It is impossible to imagine business without finance so it is said that Business men take money to make money.

In the word of Henry Fayol, Finance is like an arm, leg you use it or loss it Finance provides base for the company NO company can run without sufficient finance.

So, Finance management is necessary for any organizatio n and that is why finance department comes into existence In this department different finance manager perform the activities regarding rising and using finance to operate the business.

- 66 -


Board of Director Managing Director Finance Manager Accountant Workers

- 67 -

Finance is an important function of business the application of planning to the function is financial planning. It involves the policies, determination of objectives and procedure relating to the finance function. Fi nancial planning is on important function of a business is big or small this function has to be performed. It is necessary to do financial planning for an existing as well as new business.

A financial plan should be formulated in the light of present as w ell as future development before raising finance it is essential to make estimates for long term as well as short term financial needs.

* Long term financing is generally needed for fixed capital requirement * Short term finance is generally needed for working capital requirement i.e. debtors etc.

- 68 -


Particular INCOME Sales Less: Excise Duty Sales Net Other Income Income / Decease in stock 2008 - 2009 3354.06 323.89 3030.17 8.78 31.08 3070.03 Expenditure Consumption of raw materials Purchase of finished goods Payment to and provision for employees Manufacturing, administrative and selling exp. Interest and changes 1398.89 22.70 99.00 1049.46 47.41 2617.46 Profit before Depreciation, Exceptional Items and Tax Less : Provision for depreciation Add : Provision of expense for earlier years written back Profit before Exceptional Items and Tax Less : Impairment of asset Add : Exchange loss on revaluation of ECBs Profit Before Tax Less : Provision For Taxation - Current Tax - Fringe Benefit Tax - Deferred Tax Profit for the year Less : Provision of taxation of earlier years provided during the Year Net Profit Add : Balance in profit and loss account brought forward Profit available for Appropriation Less : Transferred to capital redemption reserve : Transferred to general revenue : Final dividend n preference shares : Proposed dividend on preference shares : Tax on dividend Balance Carried to Balance Sheet 452.57 244.38 Nil 208.19 60.00 29.86 118.33 13.60 0.40 17.29 67.04 (6.39) 93.43 114.00 207.43 2.79 100.00 0.13 63.66 10.82 30.86 2007 2008 2650.78 318.50 232.21 13.65 25.96 2371.82 1084.06 1.15 81.65 814.70 7.92 1989.48 382.34 226.65 70.89 226.58 Nil Nil 226.58 26.00 0.40 (29.55) 229.73 12.18 217.55 71.13 288.68 Nil 100.00 0.17 63.66 10.85 114.00

- 69 -


SOURCES OF FUNDS Shareholders Funds Share Capital Reserve and Surplus Loan Funds Secured Loans Unsecured Loans

As on 31.03.09
79.57 2521.47 2601.04 1048.12 85.67 1133.79 3734.83

As on 31.03.08
82.36 2502.62 2584.98 182.54 261.40 443.94 3028.92

1 2

3 4

APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Add : Capital work in progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Balance Loans and Advances

5 4048.53 2129.59 1918.94 243.08 2162.02 539.77 600.27 250.49 213.59 599.59 1663.94 189.93 135.28 325.21 1338.73 305.69 1033.04 3734.83 3738.92 1826.96 1911.96 259.61 2171.57 45.85 635.16 216.37 72.65 500.86 1425.04 195.46 129.68 325.14 11099.90 288.40 811.50 3028.92

6 7 8 9 10 11

Less: Current Liabilities and Provisions Current Liabilities Provisions Net Current Assets Differed Tax Liabilities


- 70 -

In order to run and manage a company, funds are needed right finance plays an important stage up to end finance plays an important role in companys life. If funds are inadequate, business suffers It is there fo re necessary that correct estimate of current and the future need of capital be mode to have an optimum capital structure, which shall help the organization to run its work smoothly and without any stress. Estimation of capital is necessary but the formati on of capital structure is important.

The capital structure is made up of debt and equity securities and refers to permanent financing of a firm it is composed of long term debts, preference share capital and shareholder fund.

Capital structure of NIRMA LIMITED as on 31.03.09

Capital Structure. Ownership Capital Share Capital Revenue & Surplus Borrowed Capital Secured Loan Unsecured Loan

As On 31.03.09
2521.47 1048.12 85.67

*Figure given here are as per the balance sheet provided on website. *Figures are in Crores.

- 71 -

Business capital is broadly divided into two groups: 1) Fixed Capital 2) Working Capital

Fixed capital refers to the funds invested in such fixed or permanent assets as land, building etc. while working capital refers to the funds locked up in materials, finish goods, receivable etc.

Working Capital is descriptive of that capital witch is not fixed but the more common us of the working capital is to consider it as the difference between the book value of the current assets and current liabilities. - Hoagland

The concept of working capital is future divided into broad parts they are

1. Gross Working Capital 2. Net Working Capital

1. Gross Working Capital Gross Working is nothing but the total current assets of the company is considered as a gross working capital. Gross Working Capital of Nirma Limited is 1663.94 Crores

2. Net Working Capital Different between the current assets and current liabilities is considered as a n et working capital. Net working Capital of Nirma Limited as on 31.03.09 is 1338.73 (i.e. 1663.94 325.27)

- 72 -

There are various methods and techniques for analyzing. The financial statement, ratio analysis is one of the most powerful tools of financial analysis. In financial analysis, a ratio analysis is used as a bench mark for evaluating the financial position and performance of a firm.

The ratio is defined as The indicated quotient of two mathematical expressions.

It is an expression of the qualitative relationship between two or more numbers

Gross Profit Ratio:

It is the ratio expressing relationship between gross profits earned to net sales. It is a useful indication of the profitability of the business.

Gross profit Ratio = Gross Profit X 100 Sales = 271254 X 100 28272 = 95.9% (In Crores)
Net Profit Ratio

The ratio is valuable for the purpose of ascertaining the overall profitability of the business and shows the efficiency or otherwise of ope ration the business.

Net Profit Ratio

Net Profit X 100 Sales

= =

230562 X 100 28272 72.09% (In Crores)

- 73 -

Current Ratio

It is measure of working capital available at particular time and shows whether the business will be able to meet its current liabilities as and when they mature. It is also known as Working Capital Management.

Current Ratio


Current assets Current Liabilities 148.69 101.59 1.46:1

- 74 -

- 75 -

In 2001 Karsan bhai was awarded an honorary doctorate by Florida Atlantic University, recognizing his exceptional entrepreneurial and philanthropic accomplishments.

In 1990 the federation of Association of Small scale industries of India (FASII) new Delhi, awarded him the udyog ratna award the Gujarat chamber of commerce felicitated him as an Outstanding Industrialist of the Eighties He has served twice as chairman of the Development council for soaps and Detergents.

Hans Ender Memorial Award Recipients

~ 1998 ~ 1999 ~ 2000

Bruce Evans Eugene Yang Rich Giska


9th among top FMCG brands of India (A & M mode 2002) 9th largest FMCG brand of the country (Ac Nielsen Retail Audit Brand Equity April 21, 2004) Selected as super brand of India for 2003 04 Most popular brand in Detergent powders Economy Category (FMCG Awards 2000)

- 76 -

- 77 -

Nirma has achieved a lot in lost years. Nirma has achieved full backward integration to support the business of detergents and soaps. The achievements of Nirma are as follows.

Nirma is awarded by ICMA for Excellence in water Resource Management in chemical industry for the year 2002 -2003.

Nirma is awarded by Gujarat Safety Council for Gujarat safety aw ard for the year 2002.

- 78 -

Strong brand equity Nirma is an Rs 17 billion umbrella brand.

Offering a bread portfolio of product at multiple price points in the detergent soaps and personal care products.

Produce a range of industrial chemical product which primarily used as row material or intermediates for soaps and detergents business.

Market leadership in detergents market and fabric wash industry and second largest player in toilet soap industry. Wide channel of distribution network.

- 79 -

- High interest burden. - Less presence in premium segment. - Lock global tie-ups and thus lacking in export markets.

- Export. - Acquisition for strengthening its distribution tie-ups. - Entry into other categories like shampoos, toothpaste and fabric whiteners .

- MNCs coming to India particularly in toil et & soap industry. - Emergence of small but strong regional players .

- 80 -

- 81 -

Nirma is adopting a consumer oriented strategy as for as the price factor is concerned, where in the priority was on passing more and more benefits to ultimate consumers. All the benefits accruing out of economies of scale were passed to consumers in the form of value for money offers like Buy one get on Free

The overall broad strategy of increasing the consumption was supported by appropriate promotion and market support. The selection of media and communication strategy was done with objectives of achieving the broad objective growth by gr owing the market.

- 82 -

- 83 -

After going through practical training in Nirma for making the analytical report of a company I would like to conclude some suggestions in order to achieve the targets and to make its consumers brand loyal.

They should go for promotional activities like sales promotion and personal selling and advertisement.

- 84 -

- 85 -

I after having visited the Nirma Company have learnt and experienced a lot and it was a pleasant experience for me to know the internal aspects of the organization I have got a very positive and co-operative response from every one at Nirma.

The get trained in this company. I have not only learned and viewed about the working of personnel and marketing but have also learned as for as the technical and manufacturing fields are concerned.

- 86 -

- 87 -

For getting the information regarding various aspects like marketing, finance & personnel etc. in practical, theoretical must clear in our mind. To have kno wledge regarding various theoretical concepts, I took reference of many books, which are as under

Financial Management Personnel Management Marketing Management Production Department Companys Website ( Companys Executive

L.M. Prasad Philip Kotler Philip Kotler S.C. Sharma

Salt Department - Mr. Girish Joshi, H. R. Assistant Soap Department - Mr. R. S. Patel, In charge Detergent Department - Mr. Paras Dave, In charge

- 88 -