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Can Nirma make the jump from suds to pills?

Finshots Daily

The journey from detergent success to pharma and cement challenges

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The journey of Nirma from successfully introducing a low-priced detergent to struggling in the pharma and cement industries reveals that price alone is not enough to succeed in these sectors. Unlike in consumer goods, in pharma, quality plays a significant role in attracting buyers. Nirma's attempts in the pharma sector through low pricing strategies faced challenges due to intense competition and the importance of quality. Similarly, in the cement industry, despite acquisitions making it the fifth largest cement maker in India, Nirma's business, Nuoco Vistas, has not performed well in the market, with a declining stock price and underperforming compared to its rivals. The uncertainty looms around the capability of Nirma to navigate and steer its newly acquired business, Glennmark Life Sciences, in the right direction and the rationale behind acquiring a struggling business. The pharmaceutical business offers three options: investing in research and development for breakthrough drugs, creating generic drugs after patents expire, or reverse-engineering existing drugs to produce cheaper alternatives for mass consumption.

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