🧵 on Ghari Detergent

🧵 on Ghari Detergent

Aug 25, 2020
  1. A thread on Ghari detergent - the story of $1.1 billion.

  2. Two brothers Muralidhar and Bimal Kumar Gyanchandani used to manufacture and sell oil soaps as part of their family business since 1970.

  3. In 1987, they started selling ghari detergent by bicycles.

  4. In 1988, they ventured into a company named Shri Mahadeo Soap Industries Pvt. Ltd. and then renamed Rohit Surfactants private limited in 2005 after Bimal's Son Rohit Gyanchandani.

  5. In an age where Consumer are shifting to machines and detergent industry introducing newer models to keep pace with machines, Ghari still reigns the Bucket wash segment of the population and controls the economy category.

  6. Ghari which started with UP is now present in more than 20 states with more than 27 manufacturing units.

  7. Focused on the Home state which is 12% of country's market sales.

  8. Profit margin of 6-7 percent to dealers in comparisons to other companies providing only 5%, this helps in building loyal dealer base.

  9. A mobile app called Msales, developed in 2011 to track sales has made tracking and delivery of the products easier.

  10. Company spent only 2 percent of its sales on advertisement and marketing with the tag line of Pehle Istemal karein Fir Vishwas karein( first use it and then trust it)

  11. Customers gave trial and quality justified the tag line led to repeated purchases.

  12. The latest campaign revolves around Saare mael dho daalo — wash away every dirt. It hints at removing dirt not just from clothes but also their minds.

  13. Ghari is the market leader in the detergent industry, with a market share of 17.3% and Wheel is tagging behind closely at 16.9%.

  14. In FMCG, the other products from RSPL includes home-care products such as Dishwash bar Xpert, Xpert Ultra gel liquid and Uniwash detergent powder; personal hygiene items like Proease sanitary pads; and a toilet soap called ‘Venus’ latest include Glori bath soap featuring Akshay Kumar in TV commercial.

  15. The company is also present in totally unrelated fields like footwear, renewable energy, real estate, leather and dairy products. Ghari still accounts for a lion’s share of the total sales revenue. In 2017, it contributed ₹3,700 crore out of the total turnover of around ₹4,550 crore.

  16. Red Chief is one of the leading brands in footwear since 1997, company has estimated sales figures of Rs. 900 million in benchmarking standards.

  17. The company also creates clean energy to meet the increasing demand for clean electricity and to address the pressing challenges of global warming and energy security. 

  18. The Company has seven wind farms in Karnataka Rajasthan, Tamilnadu, Gujarat, and Madhya Pradesh with a consolidated wind energy generation capacity of 50.1 megawatts.

  19. One of the group companies, Nimmi Build Tech Private Limited (formerly known as Poonam Developers & Infrastructure India Private Limited), is engaged in the business of construction and real estate. Company has set up an IT Software Technology Park in Noida.

  20. Namaste India Dairy Products- RSPL Limited in the dairy business with the name of “Namaste India Foods Private Ltd.”. The product portfolio include Pasteurized Milk, Pure Ghee, SMP & Dairy Whitener, Cheese, Curd, Flavoured Milk and other dairy products.

  21. The real time Net worth is of $1.1B and featured in Forbes list in 2013, 2017, 2018. 

  22. The parent company’s CSR activities include founding hospitals, dispensaries, child welfare centres for the poor and the setting up of institutions to provide medical education.

  23. One of the initiatives is the Laxmi Devi Dayal Das Charitable Hospital set up in 2013 at Kanpur. It is active in promoting health care and education; supporting rural development; providing sanitation and drinking water; and bettering lives of the underprivileged, orphans and differently-abled. It is also associated with the Swachh Bharat Abhiyan.

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