What’s Bigger Than Nirma And Surf? It’s An Unlikely Detergent From Kanpur!

What’s Bigger Than Nirma And Surf? It’s An Unlikely Detergent From Kanpur!
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If you ask a class full of top MBA students in India which detergent dominates the market in the country, the likely answers will be Surf, Nirma or Wheel. Unfortunately for them, they'll be grossly wrong. Ghari Detergent holds the numero uno position in the segment. A brand manufactured in our very own town, Kanpur.

The Successful Brand Story of Kanpur: Ghari By RSPL LTD.

Our story begins about 32 years ago, when without much ado Muralidhar Gyanchandani and Bimal Kumar Gyanchandani, launched Ghari detergent powder. They started from a small town in Uttar Pradesh, Kanpur, with little hope in the heart because the market was already ruled by brands such as Nirma and Surf at that time.

The next year they set up Shri Mahadeo Soap Industries Pvt. Ltd. which oversaw the manufacturing of Ghari. The story skips a few years and lands in 2005 when the firm changed its name to Rohit Surfactants Private Limited or RSPL. It was as 2012 came to a close that RSPL shot to the sky.

Twenty-five years after it was introduced to the market, Ghari became its leader. It crossed Wheel (which till then dominated the sector) and Tide and gained 17.4% of the share.

How did Ghari become such a successful brand?

Despite being manufactured in a tiny town, Ghari becomes so successful that it led to the creation of a 5800-crore diversified conglomerate in India.

So, how did they go from a company no one had ever heard of to a household name?

In short, the Kanpur-based firm knew how to hold the vital nerve of the Indian market – the rural and semi-urban areas.

  1. While the rest of the detergent brands priced their products sky-high, Ghari kept it low. It was this extremely light on the pocket strategy that attracted the lowest rung of the market, which also happens to be the biggest in the country. Less price + more sales = good profit. That's the formula Ghari used.
  2. RSPL additionally knew that they couldn't beat the likes of P&G and HUL when it came to financial power. It is why they kept their focus on Uttar Pradesh. Fortunately, for them it is one of the most populated states in India with a gigantic rural section. Did you know that UP contributes to 12% of all FMCG sales in the country?
    • Focusing on the home state was one of the most significant advantages Ghari had, but the company went one step ahead. It thought of its dealers too. While other detergent brands offered only a 5% profit margin on sales, Ghari offered somewhere between six to seven percent!
    • If you thought that being based in a tier 2 city made the peeps behind Ghari any less tech savvy, think again. Back in 2011, when mobiles apps were brand new stuff, RSPL started their msales application, which was also GPS enabled. The app allowed distributors to book sales and track them. Tracking activity in real-time allowed the sale force of the detergent giant to be more accurate and efficient!

    As we wind down the story of how Ghari captured the market despite going head to head with major brands, we like to reiterate that the company is based out of Kanpur.

    We're proud, and we'd like to toot our own horns. After all, Ghari went from the underdog to playing it like a Rockstar!

    We leave you with this little (but huge) tidbit. Today, Ghari's portion of the market is 22%, which is larger than Wheel, Nirma, and Sunlight all put together!

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