Detergents baron Karsanbhai Patel's Nirma Ltd, which revolutionised the Indian soaps and detergents market, has undertaken a fresh valuation of its brands.
Its two key brands, Nirma and Nima, along with the trademarks, have been valued at Rs 1,400-1,600 crore (Rs 14-16 billion) by international consulting firm Deloitte, Haskins and Sells.
The Patels recently altered the group's structure, with the flagship Nirma Ltd proposing to buy back Nirma and Nima from the unlisted Nirma Industries, earlier known as Nirma Chemical Works, with effect from February 1, 2003.
In the late 1990s, investors criticised the group for hiving off the Nirma and Nima brands. This had resulted in lower valuations for the listed Nirma Ltd, which was engaged in manufacturing.
The value of the brands was not accruing to the listed company, critics pointed out. The promoters hold over 70 per cent equity in Nirma Ltd.
Nirma registered gross sales of Rs 2,416 crore (Rs 24.16 billion) for the year ended March 31, 2003, a growth of 6 per cent over Rs 2,276 crore (Rs 22.76 billion) in the previous year. Gross profit stood at Rs 515 crore (Rs 5.15 billion), against Rs 517 crore (Rs 5.17 billion) last year.
The company has expanded its portfolio to iodised salt apart from a presence in the personal care market through Nirma Shikakai, Nirma beauty shampoo and Nirma toothpaste.
Over the years, Nirma has become a household name across the country, thanks to its low prices.
Brand tales
- Valuation considered two key brands, Nirma & Nima, along with trademarks.
- Nirma Ltd had proposed to buy back Nirma and Nima from unlisted Nirma Industries with effect from February 1, 2003.
- In late 1990s, investors criticised the group for hiving off the Nirma and Nima brands.
