Tuesday 16 September 2014

PROGRESS OF GHADI DETERGENT

Evolution of detergent industry in India

Detergent industry had its beginning in 1957. Swastik Oil Mills in Wadala, Mumbai, was the first Indian factory to manufacture synthetic detergents. The evolution of detergent powder industry is summarised in the table below keeping focus on Indian subcontinent.

YearWhat happened
1930German scientists develop synthetic detergents to overcome post-World War-I shortages in key ingredients then used for soap, animal fat and vegetable oils. The other big advantage of synthetic detergents was that they were better at washing clothes in 'hard' water. They were also far better suited than soap for use by the textile industry.
1945-47Detergents, specifically the brand Persil, enter post-War German morbid humour. Persilscheins was the jokey shorthand for the de-Nazification certificates issued by Allied Powers to Germans.
1950sHuge post-war expansion of the synthetic detergent industry in its key market, the US, and the associated environmental problems. Sulphonates used in detergent to get the dirt of clothes, were not biodegradable. Their release into water bodies lead to huge amounts of foam being formed in lakes and rivers. Under public pressure, manufacturers switched to biodegradable substances.
1957The first Indian factory to manufacture synthetic detergents set up by Swastik Oil Mills in Wadala, Mumbai. Even though key ingredients are imported, they still cost far less than importing finished detergents.
1960sHUL (then HLL) enters India accelerating the shift to detergents is persisting shortages of vegetable oils, a key ingredient in soap. By the mid-60s large corporates like Tata Oil Mills and Hindustan Lever establish themselves in the business. The latter even begins exporting to Russia.
1965-70Since 1950, another key ingredient in detergents was phosphate chemicals, which is effective in washing clothes in 'hard' water. But they also caused 'eutrophication', a dramatic and excessive growth of plants in lakes and other water bodies that uses up most of the oxygen, leading to the death of marine life like fish. Detergent makers in the US started using non-phosphate chemicals in response to the criticism, though they fight against an outright ban.
1969Nirma, HUL's future nemesis, is born.
1970sShortages in vegetable oils accelerate and so does the use of synthetic detergents. To promote their use among wary soap-using consumers in rural India, companies like HUL perform plays and puppet shows at mandis. HUL also introduces Rin Bar at about this time. Mindful of the need to conserve the use of vegetable oil, government classifies synthetic detergents as a 'core' industry.
1974Despite the expansion in synthetic detergents, the capacity of the Indian industry is still only 84,000 tonnes, far less than the government-sanctioned capacity of 3.5 lakh tonnes. Queering the pitch, the government begins pondering the liberalisation of licences, but only to the small-scale sector.
1975Due to the West Asia oil crisis, prices of key petrochemicals skyrocket, by as much as 100%, forcing manufacturers to raise prices of detergents. The price of Surf doubles in one year, causing outrage in Parliament against companies like HUL. Such high raw material prices will persist through the 70s.
1975Point, a detergent brand, achieves history by being the first product in this category launched by a sarkari factory, the public-sector Government Soap Factory of Bangalore (which also makes Mysore Sandal soap). Soap Opera, Mid- to Late-70s High detergent prices make soap manufacturers competitive, causing consumers to switch.
198325 years after the first domestic factory was established, synthetic detergents only manage a 25% market share of the total fabric washing market. By comparison, the market shares in Thailand that time is 99% and in Kenya, 60%.
1985History is made as lower-priced Nirma evicts HUL's Surf from the pole position in the detergents market.
1987Unnoticed by the biggies, brothers Muralidhar and Bimal Kumar Gyanchandani launch Ghari, which will eventually come to rival the two giants in market share.
1988HUL introduces Wheel to take on Nirma. In its battle with Nirma, HUL will bring its massive marketing and distribution muscle to bear.
2000sHUL wins the battle. Nirma falls to second place.
Early 2012Ghari overtakes HUL.


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