Company Name: Nilkamal Limited
Founders: Sharad Parekh, Hiten Parekh and Vaman Parekh
Nilkamal Limited is a manufacturer and exporter of plastic products. They are mainly known for producing furniture using plastic elements. It makes various products other than plastic furniture such as crates, containers and custom mouldings of plastic. The company currently holds the honor of being Asia’s biggest plastic moulded products.
It is also the largest manufacturer in the world among those who produce moulded furniture. NIlkamal was one of the first to launch home decorating division named ‘@home’. This ‘@home’ division has grabbed a few accolades including the retailer of the year award which was given by Asia Retail Congress.
How It All Started
Nilkamal was introduced first in the business with the name of Creamer Plastic in the year of 1985. But it changed the name to Nilkakamal Plastic on 23rd August 1990 as the company was converted into a Public Limited Company from a Private Limited company. NIlkamal Limited was promoted by the Parekh family, Vaman Parekh, Sharad Parekh and Hiten Parekh being the promoters.
The headquarters of the Nilkamal Limited is currently situated in Mumbai, Maharashtra. The company currently holds the revenue of 21.9 billion in Indian Rupee. In the year of 1991, Nilkamal Limited was listed on the Bombay and National Stock Exchange.
Launching
At first, the company only made items like crates which were used to handle materials and various moulded seating systems. It has spread its business in various directions. Now it makes products like mattresses named Nilkamal Mattrezzz, homeware items, bubble guards etc.
Among the furniture items, there are Sofas, Dining sets, office chairs, cabinets, multi-purpose racks, stools, shoe racks, storage units etc. The company has also done joint works in Sri Lanka with Nilkamal Eswaran Plastics and in Bangladesh with Nilkamal Padma Plastics.
Marketing Strategy and the Reasons behind Its Success
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- Market Leadership Position: Being a market leader can help a company in various ways. The same positive factors are working with Nilkamal Limited. They have held the honorary position of the market leaders in the Containers and Packaging Industry for a long time. This reputation has helped the company sell new products as well as old products rapidly which has led to the success of the company.
- Wide Geographic Presence: Nilkamal has an extensive dealing Network which has helped them containing a wide geographical presence. There are more than twenty branches spread across India. This network helps in delivering effective services to the customers of the company as well as collecting information about the other competitive companies and their marketing strategies. This helps the company not only improve itself but also keep its customers happy and content.
- Manufacturing Strength: Manufacturing strength is always a factor to tackle the high requirements of the products. Without strong facilities, it is impossible to produce more items in less time. Nilkamal currently has 8 large manufacturing plants in different places in India such as Barjora situated in West Bengal, Hosur in Tamilnadu, Nashik in Maharashtra, and Greater Noida in Uttar Pradesh etc. This eight manufacturing plants create massive manufacturing strength. With this astonishing manufacturing strength, meeting the requirement of products becomes very easy. This helps the company create more products in very small time thus keep the business going in a smooth flow.
- Strong Brand Recognition: Staying in the leading position in the Containers and Packaging Industry has helped Nilkamal strengthening the base of reputation. Because of this, the Nilkamal products have strong recognition among the customers. This has enabled the company to release new products without any second thoughts as well as sustain a competitive advantage in the market.
- Advantage of the First Mover: Being unique in the furniture market is a risky feat. If the products are good then they will get the company so much profit. But in the same way, it also has a chance of failing in the market resulting in a loss. Nilkamal has always ventured with new and unique products and released them in the market. But because of their strong presence in the market as well as the high quality of their products, these new items have always been very successful in the market. This has helped Nilkamal to stretch their wings more and provide new products to their customers.
- Quality and Price: Both the quality and price of any product can determine the reason behind its success and failure. Any products with high and non-realistic price will not sell well in the market and the production company will not get any profit out of it. Keeping this in mind, Nilkamal has always kept the prices of their products affordable for everyone as well as maintaining their prime quality. Good quality has made the company gain the trusts from the customers while the reasonable price has helped the company get more offers from their buyers. With this brilliant pricing strategy, the company has made more profit than any other rivals in the market.
- Unique Product Designing: Bringing new products in the market are one of the main reasons for a company to extend its business. But new products with same designs will not be a great success because they might bore the eyes of a customer. Thus with good quality and price, a product needs a unique design which will differentiate it from the other items. Bearing this in mind, advanced designing software such as Autocad is used extensively by Nilkamal design specialists. Also, a very detailed study of the target market helps the company very much before introducing any new product.
Campaigning
Nilkamal released their mattress products with the tagline of ‘Har Problem Ko Sula Do’. They also have many other ads of their products explaining the product descriptions which are available on YouTube.
NIlkamal Limited had agreed to be a co-sponsor of the legendary football club Mohun Bagan in 2017. The deal was said to be continued until the season ends.
Conclusion
The Parekh Brothers were inspired by their father and started their journey with Nilkamal with confidence and belief. That strong belief has made them the leader of manufacturing the moulded furniture items. With no signs of stopping, the company is trying the rule the Global market in this category.
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