Post on 06-Sep-2014
OGANISATIONAL STUDY AT KS&DL
KARNATAKA SOAPS & DETERGENTS LTD
INTRODUCTION
Soaps are cleaning products that have become an essential part in our daily lives.
Cleaning products play an essential role by safely and effectively removing dirt, germs and
other contaminants, and thus promote a hygienic lifestyle.
Soaps account for the largest single share of about 10% in the Rs 480 billion FMCG
market. The toilet market is getting saturated at a high penetration level of 98% and is
growing at a very modest rate. The soap, once only an urban phenomenon, has now
penetrated practically in all areas including remote rural areas. The incremental demand
flows from population increase and rise in the usage norm impacted as it is by a greater
concern for hygiene. Increased sales revenues would also expand from up gradation of
quality or per unit value.
The market is littered over with several leading national and global brands and a large
number of small brands which have limited markets. The popular and premium brands
include Lifebuoy, Lux, Cinthol, Liril, Rexona, Shikakai, Nirma, Dettol etc. to name a few.
The inventory, however, changes by the quarter-if not by the month.
The market is expected to grow at rates ranging from under 4% to around 4.5%.
These are very modest rates considering that the lifestyles not only of urbanites, but even of
well-off rural folks are changing at a very high pace
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INDUSTRY PROFILE:
Soap is one of the commodities which have become an indispensable part of the life
of modern world. Since it is non durable consumer goods, there is a large market for it. The
whole soap industry is experiencing changes due to innumerable reasons such as government
relations environment and energy problems increase in cost of raw material etc.
The changing technology and ever existing desire by the individual and the
organization to produce a better product at a more economical rate has also acted as catalyst
for the dynamic process of change.
More and more soap manufactures are trying to capture a commanding market share by
introducing and maintaining acceptable products. The soap industry in India faces a cut throat
competition while multinational companies dominate the market. They are also facing severe
threat from dynamic and enterprising new entrance especially during 1991-92.
If we look back into the history of soaps & detergents, mankind knew about soaps
nearly 2000 years back i.e. in 70 A.D. when Mr. Elder accidentally discovered the soap,
when roasted meat over flowed on the glow in ashes. This lump like product was soap & had
foaming & cleansing character. In 1192 A.D. the first commercial batch of soaps was made &
marketed by M/s Bristol soap market in London, from there in 1662A.D. the first patent for
making soap was taken in London. The world consumption of soap in 1884A.D. was said to
be 2 lakh tonnes p.a.
INDUSTRY OVERVIEW
A report on soap manufacture in India Holla and R.R. Press of Tata Oil Mills Co. Ltd
notes that soap consumption in India is expected to rise about 9.5% a year, to total 374,000
metric tons by 1990, 580,000MT by 1995, 11,914,000MT by 2009 and 15,325,000 MT by
2012. This will require expanding manufacturing capacity to approximately 13,135,000 MT
by 2010.
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According to the report presented at soaps seminar conducted by the Oil
Technologist’s Association of India on April 20, 2009, the largest growth potential is in rural
markets. The main raw native materials used for manufacturing of soaps are rice bran,
hardened rice bran oils and oils from mowrah, sal, neem, karanja and khakhan. Imported
sources used include coconut and palm kernel oils. India currently has a total ban on the use
of animal tallow. Also, groundnut is not permitted for soap manufacturing; it is solely used
for edible purpose.
The soap market in India is well developed and dominated by multinational
companies and a few large Indian companies. A few major players, high entry barriers, fairly
high rate of new product launches and high advertisement spending characterize this
segment. H.U.L. is the market leader in majority of the soap segment. The soap market is
dominated by three major players- Hindustan Unilever Limited, Nirma and Godrej. Together
they have 88% of the market share. While H.U.L. has clearly been the market leader over the
last many decades, Nirma has grown in past 15 years to command one-fifth of the market.
The remaining market is held by Godrej, Palmolive, Wipro, Dabur, Reckitt & Coleman and
Medimix etc
Since the market power is concentrated with a few major players, soap market is a
perfect example of an oligopolistic market structure.
The penetration level for soaps is almost saturated in urban market and the rural
market is not lagging behind. Indian markets are looking at ways to push higher usage. That’s
why the players are trying every trick in book to boost per capita consumption as that is the
only way to grow.
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HISTORY OF THE SOAP: Soap manufacturing was started in North America. Some American companies with
well known names were started 200 years ago. During middle age soap was made at various
places in Italy, France, England & other countries. France became famous & many small
factories were established there.
In India the first soap industry was established by North West soap company in1897 at
Meerat following the Swadeshi movement. From 1905 onwards few more factories were
setup.
They are,
Mysore soap factory at Bangalore
Godrej soap at Bombay
Bengal chemicals
Tata oil mills
1930 lever brothers company
PROBLEMS OF SOAP INDUSTRY:
Soap industry faces some problems incase of raw materials. The major ingredients are
soap ash, linear alkyl, benzene& sodium. Tripoli phosphate poses number of serious
problems in terms of availability. The demand supply gap for vegetable oil is 1.5 to 2 lakhs
tons & is met through imports. In recent times, caustic soda and soap ashes in the cheaper
varieties of soaps are quite high.
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COMPANY PROFILE:
INTRODUCTION TO SOAP INDUSTRY:- Soap is one of the commodities, which has become an indispensable part of life of the
modern fantasy world. Since it is non-durable consumer goods, there is a large market for it.
The whole soap industry is experiencing changes due to innumerable reasons such as
Government relations, environment, toxicological allergy problems, increase in cost of raw
material etc.
Following Swadeshi movement in 1905, few factories were set up and they were:
1. Mysore Government Soap factory at Bangalore.
2. Godrej Soaps at Bombay.
The changing technology and even existing desire by the individuals and the
organization to produce a better product at a mere economical rate has also acted as Catalyst
for the dynamic process of change. More and more Soap manufactures are trying to capture a
commanding market share by introducing and maintaining acceptable products. The soap
industry in India faces a cutthroat Competition, while multinational companies dominate the
market.
THE INDIAN SOAP INDUSTRY SCENARIO: -
The Indian soap industry has been dominated by handful of companies such as
1. Hindustan Levers Limited.
2. Tata Oil Mills (Taken over by HLL )
3. Godrej Soaps Private Limited.
4. Recent entrants include - Colgate Palmolive Ltd.,
- Proctor & Gamble Ltd.,
- Nirma Soap Works,
- ITC Ltd
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The Indian Soaps industry continued to flourish very well until 1967-68, but began to
stagnate. Soon it started to recover and experienced a short upswing in 1974. This increase in
demand can be attributed to:-
1. Growth of population.
2. Income and consumption increase.
3. Increase in urbanization
4. Growth in degree of personal hygiene.
Soap manufacturers are Classified as, Organized and unorganized sector. KSDL is under
organized Sector.
PRESENT STATUS: -
MARKET SCENARIO
India is the ideal market for cleansing products. The country’s per capita consumption
of detergent powders and bars stands at 1.6 Kg and soap at 543gms. Hindustan Lever, which
heralds over the cleaning business, sells in all over the cleaning business.
PROBLEMS OF SOAPS & DETERGENTS INDUSTRY:
Industry faces some problems due to increase in the cost of raw materials. The major
ingredients like soda ash, linear alkyl benzene and Sodium Tripoli phosphate poses number
of serious problems in terms of availability. The demand and supply gap of vegetables oil is
1.5 to 2 Lakhs tons and is met through imports.
HISTORY:-
India is a rich land of forest; ivory, silk, sandal; precious gems are magical charms of
centuries. The most enchanting perfumes of the world got their exotic spell with a twist of
sandal. The world’s richest sandalwood resource is from one isolated stretch of forests land
in South India that is Karnataka.
The origin of sandalwood and its oil in Karnataka, which is used in making of Mysore
sandal soaps, is well known as Fragrant Ambassador of India & Sandalwood oil is infact
known as “Liquid Gold”.
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By the Inspiration of His Highness Maharaja of Mysore late Jayachamarajendra
Wodeyar, the trading of sandalwood logs started which was exported to Europe and New
destinations, but with commencement of First world War India faced Severe Crisis on the
business of sandalwood.
This situation gave rise to start of an industry, which produces value added products
i.e., of Sandalwood oil. His Highness Maharaja of Mysore created this situation as an
opportunity by sowing the seed of the Government Sandalwood Oil Factory, which is the
present KS&DL. The project was shaped with the engineering skills and expertise of the top
level. Late Sir M. Visvesvaraya, the great Engineer who was the man behind the project.
Today’s famous Mysore sandal soaps credit goes to late Sri Sosale Garalapuri Shastri
who incorporated the process of soap making using Sandalwood oil. He was an eminent
scientist in the field working at the Tata Institute, Bangalore. He was sent to England to
master the fine aspects of soap manufacturing.
The Maharaja of Mysore & Diwan Sir.M.Visvesvaraya established the Government
Soap factory during the year 1918. The factory was started as a very small unit near
K.R.Circle, Bangalore with the capacity of 100 tons P.A. In November 1918 the Mysore
sandal soap was put into the market after sincere effort and experiments were undertaken to
evolve a soap perfume blend using sandalwood oil as the main base to manufacture toilet
soap. The factory shifted its operation to Rajajinagar industrial area, Bangalore in July 1957,
where the present plant is located. The plant occupies an area of 39 acres (covering Soaps,
Detergents and Fatty Acid divisions), on the Bangalore – Pune Highway, easily accessible by
transport services and communication. Another sandal wood oil division was established
during the year 1944 at Shimoga, which stopped its operations in the year 2000 for want of
Natural Sandalwood.
This factory started at a moderate scale in year 1916. The first product was washing
soap in addition to the toilet soap in the year 1918. The toilet soap of the company was made
up of sandal wood oil.
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In 1950 Government decided to expand the factory in two stages. The first stage of
expansion was done to increase the output to 700 tons per year and was completed in the year
1952 in the old premises.
The next stage of expansion was implemented in 1954 to meet growing demand for
Mysore sandal soap and for this purpose Government of India sanctioned license to
manufacture 1500 tons of Soaps and 75 tons of glycerine per year. The expansion project
worth of Rs.21 lakhs includes the shifting of the factory to a newly laid industrial suburban of
Bangalore.
The factory started functioning in this new premise [i.e., present one] from 1st July
1957. From this year onwards till date the factory had never looked back, it has achieved
growth and development in production scales and profits.
The industry has 2 more divisions one at Shimoga and another at Mysore where
sandal wood oil is extracted. The Mysore division started functioning from 1917 and only
during 1984 manufacturing of perfumed and premiere quality Agarbathies at was started.
Right from the first log of sandalwood that rolled into the boiler room in 1916, the company
has been single – minded pursuit of excellence. The project took shape with the engineering
skills and expertise of top-level team under the leadership of Sir. M.Visvesvaraya, Prof.
Watson and Dr.Sudbrough. Like this soap factory was started as a small unit and now it has
grown up to a giant size.
RENAMING: -
On 1st October 1980, the Government Soap Factory was renamed as “Karnataka
Soaps and Detergent Limited” The Company was registered as a public limited company.
Today Company produces varieties of products in the toilet soaps, detergent, Agarbathies and
Cosmetics.
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OBJECTIVES OF KS & DL: - To serve the national economy
To attain self – reliance
To promote and uphold its image as symbol of traditional products
To promote purity and quality products and thus enhance age old – charm of
Sandalwood Oil
To build upon the reputation of Mysore Sandal soap based on pure sandal oil.
To maintain the brand loyalty of its customer.
To supply the products mentioned above at most reasonable and competitive rate.
VISION STATEMENT:- Keeping pace with globalization, global trends and the state’s policy for using
technology in every aspect of governance.
Ensuring global presence of Mysore Sandal products while leveraging its
unique strengths to take advantage of the current technology scenario by
intelligent and selective diversification.
Secure all assistance and prime status from Government of India, all
technology alliances.
Making all out efforts to achieve reasonable profits.
Most importantly to earn the invaluable foreign exchange, both to the state and
to the country.
MISSION STATEMENT:- To serve the National economy.
To attain self-reliance.
To promote purity & quality products
To maintain the Brand loyalty of its customers.
To build upon the reputation of Mysore sandal soap based on pure sandal oil.
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COMPETITORS OF KS&DL PRODUCTS AND SERVICES:-
KS&DL is facing cut-throat competition in national and international market. Some of its
main competitors are:-
M/S. Hindustan Uni Lever Ltd.,
M/S. Godrej Soaps Private Ltd.,
M/S. Proctor& Gamble
M/S. Wipro
M/S. Nirma Soaps Private Ltd.,
M/S. Jyothi Laboratories
TRADEMARK OF KS & DL : -
The “ SHARABHA ”
The carving on the cover is the sharabha, the trademark of KS & DL.
The sharabha is a mythological creation from the “puranas” which has a body of a
lion and head of elephant, which embodies the combined virtues of wisdom and strength. It
is adopted as an official emblem of KS& DL to symbolize the philosophy of the company.
The sharabha thus symbolized a power that removes imperfections and impurities.
The maharaja of Mysore as his official emblem adopted it. And soon took its pride of place
as the symbol of the Government Soap Factory of quality that reflects a standard of
excellence of Karnataka Soaps and Detergent Limited.
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SLOGAN:-
“NATURAL PRODUCTS WITH EXOTIC FRAGRANCES”
KS & DL has a long tradition of maintaining the highest quality standard, right from the
selection of raw materials to processing and packing of the
end product. The reasons why its products are much in demand globally and are exported
regularly to UAE, Beharen, Saudi-Arabia, Kuwait, Qatar, South America. The entire toilet
soaps of KS & DL are made from raw materials of vegetable origin and are totally free from
animal fats.
POLICY OF KS&DL:-
Seek purchase of goods and services from environment responsible suppliers.
Communicate its environment policy and best practices to all its employees’
implications.
Set targets and monitor progress through internal and external audits.
Reuse and recycle materials wherever possible and minimize energy consumption and
waste.
BIRDS EYE VIEW OF KS&DL:-
1918 – Government Soap Factory was started by Maharaja of Mysore
and the Mysore Sandal Soap was introduced into the market
for the first time.
1950 - The factory output rose to 500 M.Tons with the following
modifications.
1. Renovating the whole premises.
2. Installing new boiler soap building plant and drying
chamber.
1954 – Received license from Government to manufacture 1500 tons
of soap and 75 tons of glycerine per year.
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1957 – Factory shifted its operation to Rajajinagar industrial area.
1974 – Mysore sales international limited was appointed as the sole
selling agent, for marketing its products.
1975 – Rs.4 Crores synthetic detergent plant was installed
based on Italian technology by Ballestra SPA.
1980 - On 1st October 1980 the Government Soap Factory was
converted into a public sector enterprise and renamed as
“Karnataka Soaps & Detergents Limited”.
1981 – a) Production capacity increased to 6000 tons,
b) Rs.5 Crores Fatty Acid Plant was installed.
1984 – Manufacturing of premium quality of Agarbathies at Mysore
division.
1985 – Production capacity was raised to 26,000 M.Tons Per Annum.
A large variety of toilet soaps at attractive shapes, colors and
fragrances introduced to meet the varieties & tastes of
consumers.
1992 – The company was registered with the Board for Industries
and Financial Reconstruction (BIFR), New Delhi in December
for rehabilitation, as the company suffered losses
continuously since 1980 at its net worth fully eroded.
1996 – The BIFR approved the rehabilitation scheme in September &
the Company stated making Profits.
1999 – ISO-9002 Certificate for quality assurance in production,
installation and Servicing.
2000 – ISO-14001 certificate pertaining to environmental
management system.
2003 – The entire carried forward loss of Rs.98 Crores wiped out
and in May BIFR, declared the company to be out of its
Purview. The Company is making profit continuously,
It is only State Public Sector unit that has come out of BIFR.
2004 – The ISO-9002 was upgraded to ISO-9001-2004, Quality Systems.
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PRESENT STATUS OF THE COMPANY
The company is mainly dependent on southern market. The product availability in retail
outlets particularly for Mysore sandal soap is almost comparable to any other similar
industries products in the premium segment in the south. Whereas in other parts like Eastern
& Northern markets penetration of KSDL product is relatively poor, which depends on the
company’s distribution structure, stockiest and field personnel strength.
With increased trust on distribution, the company does not foresee any problems to
achieve the projected sales through the redistribution package.
Further, the policy of Indian Government also sees the public sector enterprises enter
the industry in a large way there by making the products available to the consumers at
reasonable prices.
Being located in the centre of southern part of India the Government Soap Factory
claims preferential treatment for expansion programmed in view of availability of exotic
natural Sandalwood oil.
Hand In Hand For Twenty-Eight Years
Karnataka Soaps & Detergents Ltd., Bangalore
Karnataka Soaps & Detergents Ltd. (K.S.D.L.) Bangalore,
the biggest Sandalwood Soap Industry in Asia, located at the
Northern side of Bangalore in the large Industrial Area called
Yeshwanthpur.
TCI gives us door-to-door delivery. For all the past twenty
five years or more TCI has ensured safe passage of our goods
in India." Said Mr. Shanbagh.
It is the mutual trust and respect and appreciation for each others that keep the relationship
going, year after year.
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AN ISO-9002 COMPANY: -
KS & DL with a tradition of excellence of over eight decades is committed to customer
delight, through total quality management and continuous improvement through the
involvement of all employees. KS&DL has got ISO 9002 certificate.
To improve the quality management system and to facilitate TQM in the process of soap
and detergent, the management took decision to obtain ISO-9002 by end of March 1999.
Accordingly action plan was drawn and a committee was set up for the purpose during
October 1998 with a mission statement.
The company gives initial training including conducting employee’s awareness programme,
document quality manual and quality system procurement.
In this direction company obtained the guidance from Consultancies, Bangalore and
Bureau of Indian Standards, Bangalore. Accordingly, company standards registered for ISO
9002 by the end of March to the Bureau of Indian Standards. Obtained the certificate by the
end of March 1999 itself.
This is to project in the national and international market and also to improve quality
of products offered to the consumers with the assurance of quality in the message.
The Company got itself upgraded to ISO-9001-2004, Quality Systems in the year
2004-05.
ISO-14001:-
The company is located in the heart of the Bangalore city. The management of the
company took a decision to get the ISO-14001 and become model to other public sector for
the techniques used and also to other Government units to spread the message of maintenance
of environment.
ISO-14001 and ISO-9001 will facilitate to improve the corporate brands in the global
market and it will help the company to improve the profits, year after year on long-term basis.
The environment management system adopted in the company through this motive as
follows:
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Conservation of energy
Conservation of Surrounding
Conservation of resources.
Equipped with latest technology and backed by full-fledged quality control and R&D
support, KS&DL is marching confidentially ahead in the new millennium. The Company is
developing new products to meet the changing preferences of its customers.
THE BIRTH OF A LEGEND:-
The early year of the 20th century witnessed the birth of a magical formula, created
from the finest and purest sandalwood oil, better known as “liquid gold”, distilled
exclusively at our divisions in Karnataka-Mysore. A fragrant gift to the world from the first
Government Soap Factory of India. Nurtured by the Maharaja of Mysore, enriched with all
the goodness of natural sandal wood oil, this unique soap captured hearts and markets at
home, as well as right across the globe creating a fragrant legacy for the state of Karnataka.
Karnataka Soaps and Detergents limited (KS&DL) is the true inheritor of this golden legacy
of India. Continuing the tradition of excellence for over eight decades, using only the best
Grade sandal wood oil in its product range, KS&DL today in one of the largest producers of
Sandal wood oil and sandal wood soaps in the world.
PRODUCT MANUFACTURED BY KS&DL:-
TOILET SOAPS
NAME OF THE PRODUCT UNITS OF GRAMS
Mysore Sandal Soap 75, 125
Mysore Sandal Classic Soap 75
Mysore Sandal Gold Soap 75, 125
Mysore Sandal Baby Soap 75
Mysore Special Sandal Soap 75
Mysore Rose Soap 100
Mysore Sandal Herbal Care Soap 100, 125
Mysore Jasmine Soap 100
Wave Soap 100
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Mysore lavender Soap 150
Mysore Sandal bath tablet 150
Mysore Sandal classic bath tablet 150
Mysore Jasmine bath tablet 150
Mysore Special Sandal tablet 150
Mysore Sandal rose tablet 150
Mysore Sandal Guest tablet 17
GIFT RANGE
SBT
SJR
06 IN 01
GOLD SIXER
DETERGENTS
NAME OF THE PRODUCT UNITS IN GRAMS
Mysore detergent powder 1000
Mysore detergent powder 500
Mysore detergent Cake 125
Mysore detergent cake 250
TALCUM POWDERS
NAME OF THE PRODUCT UNITS IN GRAMS
Mysore Sandal Talc 20, 50, 100, 300
Mysore Sandal Baby Talc 100, 200, 400
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AGARBATHIES
NAME OF THE PRODUCT
Mysore Sandal Premium
Mysore Sandal Regular
Mysore Rose
Nagachampa
Suprabhatha
Mysore Jasmine
Parijata
Sir M.V.100
Bodhisattva
Venkateshwara
Durga
Ayyappa
Alif Laila
Meditation
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PRODUCT PROFILE- KS&DL is the true inheritor of golden legacy of India. Continuing the tradition of
excellence for over eight decades, using only the best East Indian grade Sandalwood oil
& Sandalwood soaps in the world. The products produced at KS&DL are the Soaps,
Detergents, Agarbathies and Sandalwood oil.
PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL
SOAPa. Mysore Sandal Soap (75gm,125gm & 150gm)
b. Mysore Sandal Special Soap (75gm)
c. Mysore Sandal Baby Soap (75gm)
d. Three-In-One Gift Pack –(SJR) 3Tabs (150gm Each)
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e. Mysore Sandal Gold Soap (125gm)
f. Mysore Rose Soap (100gm)
g. Six-In-One Gift Pack- 6Tabs (150gm Each)
h. Mysore Sandal Gold sixer 6 Tabs (125gm Each)
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i. Mysore Sandal Soap Bath Tablet Trio 3nos. (150gm Each)
j. Mysore Sandal Classic Soap(75gm) )
k. Jasmine Bath Soap (75gm)
l. Mysore Jasmine Soap (100gm)
m. Mysore Sandal Herbal Care
DETERGENTS: KS&DL also manufactures high quality detergents applying the latest spray drying
technology with well balanced formulation of active matters & other builders; they provide
the ultimate washing powder.
1. Sensor Detergent Powder (1kg/2kg)
2. Mysore Detergent Powder (1kg/500gms)
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3. Mysore Detergent bar (250gms)
4. Mysore Detergent Cake (125gms/250gms)
AGARBATHIS:1. Mysore Sandal premium 8. Mysore sandal 2. Mysore Rose 9.Nagachampa
3. Suprabath 10.Mysore Jasmine
4. Parijata 11.Bodhisattva
5. Venkateshwar 12.Durga
6. Ayyappa 13.Alif Laila
7. Chandhana
SANDALWOOD OIL:In 5ml, 10ml,20ml, 100ml,500ml,2kg,5kg,20kg,and 25kg packing.
POWDERS:1. Mysore Sandal Talk: Cooling & Healing, Fragrant freshness, Net. Wt 20gm, 60gm,
300gm and 1kg.
2. Mysore Sandal Baby Powder: Tender loving care for baby…& Mummy. Net wt 100-
400gms.
AREA OF OPERATION:GLOBAL FAVOURITES FOR THEIR NATURAL GOODNESS:
KS&DL has a long tradition of maintaining the highest quality standards, right from the
selection of raw materials to processing and packaging of the end product. The reason why its
products are much in demand globally & are exported regularly to UAE, Bahrain, /Saudi
Arabia, Kuwait, Qatar, South East Asian countries as well as North America & South
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America. The sandalwood oil, of course, is much sought after by the leading perfume houses
of the world. All the toilet soaps of KS&DL are made from oils & fats of vegetable origin &
totally free from animal fat.
OWNERSHIP PATTERN: “Wholly owned by Government of Karnataka”.
COMPETITORS INFORMATION AND THEIR MARKET SHARE: HLL 70%
Godrej 4%
Procter & gamble 10%
KSDL 11%
Others 5%
PRESENT STATUS:1. The company has entered into shampoo, dish wash, detergent bar & room refresher.
2. The company is striving to develop new perfumes for soaps detergents, agarbathies &
shampoo.
3. The company wants to improve the existing products in terms of quality.
INFRASTRUCTURAL FACILITIES:1. Canteen facility
2. Library
3. Car stand
4. Waiting room
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WORK FLOW MODEL: SILOS
(Silos are closed chambers)
Soaps Noodles
Container Mixer
Simplex Plodder
It becomes NOODLES
Milling
It becomes soap ribbons
Duplex plodder
Cutting Machine
Cakes are led to
Stamping Machine
Wrapping machine
Led through the conveyor belt
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ACHIEVEMENTS/AWARD:1. Government of Karnataka Dept of Industries and commerce
State Export Promotion Advisory Board. “EXPORT AWARD” 1974-75
2. Detergent Plant M/s Chemical Bombay have given 1st price for the year 1980-81
3. Geographical Indication GI-2005
4. ISO 9001-2000 in the year 1999
ISO14001-2004 in the year 2000
5. ICWAI National Award for EXCELLENCE IN COST MANAGMENT
6. For the outstanding export performance of Cosmetics & Toiletries
FUTURE GROWTH AND PROSPECTUS: Introduction of anti-bacteria, herbal transparent soap, made out of 33 essential oil
based perfume, Aloe Vera, Vitamin-E etc as additive and suitable for all types of skin
and all seasons.
Improvement in existing products Mysore Sandal classic improved moisturizers &
skin conditions.
Introduction of sandalwood powder in 50gms, 100gms to meet the growing demand
for religious purpose.
Introduction of new higher powered detergent powder for institutional sales in bulk
packaging.
To attain market leadership.
Introduction of new trade schemes to increase sales.
Aggressive advertisement and publicity as part of sales promotion.
Reduction in distribution expenses.
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Cost-reduction in all areas.
Instant decision making in certain procurement activities.
Timely introduction and implementation of market driven decisions.
Ensuring effective internal control.
KS&DL AT GLANCE:-Incorporated Name - Karnataka Soaps and Detergents Limited.
Address - Karnataka Soaps and Detergents Limited
Bangalore Pune High Way
Post Box No.5531, Rajajinagar,
Bangalore – 560 055
Ph: 080-3377691/3370469/23371103 to 06
22376922 to 24
Email : Mysorsandal @ vsnl.com
Website : www.mysoresandal.com
Year of Establishment - 1918
Constitution - Wholly owned by Govt. of Karnataka
Undertaking
Management - Govt.of Karnataka nominates/appoints
Board of Directors. Chairman & MD
Renamed - 1980
Trademark - The trademark is SHARABHA. It is the
Body of lion with the head of an
elephant means blending the
intelligence of lion with strength of an
elephant.
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OGANISATIONAL STUDY AT KS&DL
Production range - Toilet soaps, bar soaps, Detergent Cakes,
Powders, Agarbathies, Cosmetics,
Baby products, Sandalwood Oil.
Process know how - The facility is a pioneer in the
Manufactures of various soaps and
technology Imported from Italy.
Capacity of the Unit - Licensed capacity is 26,000 metric
tons of Soaps & 10,000 M.Tons of
Detergents Per annum
Plants - At Bangalore
Soap Plant
Detergent Plant
Fatty Acid Plant
- At Mysore
Sandal wood Oil
Agarbathies
- At Shimoga
Duty Paid Godown
- - - - - - -
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OGANISATIONAL STUDY AT KS&DL
STRUCTURE OF ORGANISATION:
A. BASIS OF DEPARTMENTATION
KS&DL is a manufacturing concern of moderately large size. We can see here
functions wise departmentation. It facilitates effective utilization of manpower and resources
and it is a simple, economical and reasonable organization pattern.
B. LEVELS OF ORGANISATION
The organization of KS&DL consists of 4 levels, they are
TOP LEVEL consisting of BOD’s and M.D
SECOND LEVEL consisting of Directors of Finance and Special officers
THIRD LEVEL consisting of senior managers, deputy managers and
officers.
FOURTH LEVEL consisting of clerks, Assistants and Attendees.
C .ORGANIZATION CHART OF KS&DL
KS&DL is Functional type of organization. Under this type of organization men with
special abilities in a specialized function are employed. The hierarchy is represented as
follows.
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OGANISATIONAL STUDY AT KS&DL
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OGANISATIONAL STUDY AT KS&DL
FUNCTIONAL DEPARTMENTS OF KS&DL
Human Resources Department
Production Department
Marketing Department
Finance\Accounts Department
Research & Development Department
Stores Department
Welfare Department
Maintenance Department
Materials Department
Management Information System Department
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OGANISATIONAL STUDY AT KS&DL
HUMAN RESOURCE DEPARTMENT:
ORGANISATION STRUCTURE OF
HRD DEPARTMENT
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MANAGING DIRECTOR
ASST.GEN.MGR [HRD]
MGR [HRD]
OFFICER [HRD]
SENIOR ASSTS
JR. OFFICER
ATTENDER
TIME OFFICE
LWO
CANTEEN
JR.OFFICERS
SR.ASSTS.
ATTENDER
ASST.MGR
JR.OFFICER
SR.ASSTS
Cooks
Helpers
FIRST AID
VMO
SR.ASST.
HELPER
OGANISATIONAL STUDY AT KS&DL
01 CHAIRMAN Chairman
02 MD Managing Director
03 Mgr [HRD] Manager [HRD]
04 Mgr Assistant Manager [Canteen]
05 ASST MGR Labour Welfare Officer
06 JR OFFICER Junior officer
07 VMO Visiting Medical Officer
08 Officer [HRD] Junior Officer [HRD]
09 JR.OFFICER Senior Assistants
10 SR.ASSTS Attainder
11 JR ASST Junior assistant
12 Helpers Helpers
Luther Gulick highlighted “POSDCORB” which stands for planning organizing, staffing,
Directing, Coordinating, Reporting & Budgeting is the part of personnel management.
Personnel management performs lot of function in KSDL.
1. Recruitment
2. Implementing.
3. Training
4. Cordial relationship of Industry
5. Disciplinary matters
6. Performance appraisal
7. Employee safety etc
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OGANISATIONAL STUDY AT KS&DL
KEY FUNCTIONS OF THE HRD:-
1) Training and Development
2) Promotion and Transfer
3) Wages and salary administration
4) Performance Appraisal
5) Industrial Relations & union matter
6) Disciplinary Action and
7) Welfare Measures
8) Maintain personal records.
10) Study on labour turn over.
11) Verification of cash certificate, character & attitude.
12) Compilation of periodical report to various statutory authorities.
13) Maintain of SC/ST roster.
14) Maintenance of educational, wages &experience profile of the
employees.
15) Maintenance of manpower inventory.
16) Study on absenteeism & suggesting measure.
17) Coordinating dispute cases before conciliation labour court and other court.
18) Grievance handling
Cordial Relationship with trade unions: KSDL is trying its level best to ensure healthy & cordial relation with trade unions
in all matters regarding industrial disputes & employee satisfaction.
Personnel management is act as a mother as it ensures people are treated perfectly well
& widening the scope of the employees.
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OGANISATIONAL STUDY AT KS&DL
MAN POWER DETAILS:
GROUP BangaloreSOD
Mysore
Marketing
branches
Duty paid
Godown
Shimoga
Total
Executives 85 7 56 2 150
Supervisors 49 10 15 - 74
Workers 548 30 39 16 633
Total 682 47 110 18 857
MAN POWER DETAILS ACCORDING TO SEX WISE : MEN WOMEN
EMPLOYEES 827 30
FRINGE BENEFITS PAYABLE TO THE UNIONIZED CADRES EMPLOYEES
1. Shift Allowance: There are three shifts and one general shift. The office hour
is from 9.30am – 5.30pm. The shift timings are as follows:
First Shift 6.00am to 2.00pm
Second Shift 2.00pm to 10.00pm
Third Shift 10.00pm to 6.00am
General Shift 7.30am to 3.30pm
The lunch time is from 12.00pm to 12.30pm. Every Sunday is rest day for the
employees. No allowance is paid to the first shift workers; a sum of Rs.15 and Rs.25 per day
is paid to workers for second and third shift respectively.
2. Washing Allowance: The company provides two sets of uniform once in a year.
For this a washing allowance of Rs.50 per month is paid to every worker.
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OGANISATIONAL STUDY AT KS&DL
3. Leave: The company provides:
Earned Leave (EL): Workman who wishes to avail privilege leave shall apply
at least 3 days in advance to General Managers. This leave can be accumulated and
encased. 18 days EL is credited to an employee. It can be encased and for this
purpose the basic+ DA to the employee is calculated for 26 days but paid for 15
days in a year.
Casual Leave (CL): The leave is to meet unforeseen circumstances and is
granted for 3 days at a time and 7 days CL is given to an employee per year.
Sick Leave (SL): Workman who avails sick leave exceeding 3 days at a
time should produce medical certificate from Doctor. 15 days of sick leave is given
for an employee per year and it can be encashed.
4. Conveyance Allowance: The conveyance allowance of Rs.680 per month per
workman is extended.
5. Special Allowance: Paid to Typists, Stenographers, Asst.Cashiers, and Store
Keepers from Rs.55 to Rs.75.
6. Family Travel Allowance: This allowance is paid at the rate of Rs.500 per
employee per year who has put a minimum three years of service.
7. Canteen Facilities: All employees are provided with canteen facility at highly
subsided rate.
8. Annual Bonus: It is agreed to pay the profit sharing bonus in terms of the
provisions payments of Bonus Act 1965.
9. Attendance Bonus: It is paid equivalent to one day’s basic pay subject to
minimum of Rs.75 per month.
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OGANISATIONAL STUDY AT KS&DL
10. House Building Advance (HBA), House Repair Advance, House Purchase
Advance: KS&DL has agreed to provide subsidy on the loan amount secured by the
employee from HDFC or any recognized financial institutions viz., co-operative
banks, scheduled banks etc., If the interest payable by the employee exceeds 7%
then he shall be eligible for interest subsidy to be borne by the company not
exceeding 5%.
11. Festival and National Holidays: Number of paid holidays in the company is 10
festival holidays and 3 national holidays per calendar year. 2 holidays will be
treated as restricted festival holidays to be selected by the employees from the list of
holidays to be notified by the company for this purpose.
12. Death Relief Fund: Rs.30,000 will be paid to the nominee in case of death of an
employee.
13. Memento to retiring employee: Rs.2,500 will be paid as memento to retiring
employees.
14. Medical Reimbursement: Benefit to non-ESI employees a sum of Rs.500 per
month will be paid per employee towards domiciliary treatment. With regards to
hospitalization treatment, the company has taken mediclaim policy from Insurance
Company for a sum of Rs.1,50,000 per employee, which includes spouse and two
children.
15. Postponement of Increment: Postponement of the annual increment
automatically in respect of the employees who are absent without pay corresponding
to the period apart from taking disciplinary action as per provisions of standing
orders
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Units Postponement of increment by
Absence without pay for more than 30
days less than 40 days.
One month
Absence without pay for more than 40
days less than 70 days.
2 months
Absence without pay for more than 70
days less than 100 days.
3 months
PAY SCALE OF UNIONSED CADRE EMPLOYEES
W.E.F. 01.05.2003 TO 30.04.2008
SI.NO GroupRevised Pay Scale
01 I 5140-110-5690-140-6390-170-7240-200-8240
02 II 5250-110-5690-140-6390-170-7240-200-8240-240-9440
03 III 5690-140-6390-170-7240-200-8240-240-9440-280-10840
04 IV 5970-140-6390-170-7240-200-8240-240-9440-280-
10840-330-12490
05 V 6110-140-6390-170-7240-200-8240-240-9440-280-
10840-330-12490-400-14490
06 VI 6390-170-7240-200-8240-240-9440-280-10840-230-
12490-400-14490-500-15990
07 VII 7240-200-8240-240-9440-280-10840-330-12490-400-
14490-500-17990
08 VIII 8240-240-9440-280-10840-330-12490-400-14490-500-
17990-600-19190
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OGANISATIONAL STUDY AT KS&DL
PAY SCALE OF OFFICERS
W.E.F. 01.07.2008
SI.NO Designation Revised Pay Scale
01 Jr. Officer 10000-250-10500-300-12300-350-14400-400-
16800-450-18150
02 Officer 10800-300-12300-350-14400-400-16800-450-
19500-525-20025
03 Asst. Manager 14050-350-14400-400-16800-450-19500-525-
22650-600-25050
04 Manager 18150-450-19500-525-22650-600-26250-675-26925
05 Asst. Gen. Manager 20025-525-22650-600-26250-675-28275
06 Dy. Gen. Manager 22125-525-22650-600-26250-675-30300
07 Gen. Manager 24450-600-26250-675-30300-750-31800
08 Director 26250-675-30300-750-34800-850-36500
SALARIES SCALE
GROUP SALARY NO. OF EMPLOYEE
A 14050-25050 above 124
B 10800-25025 above 26
C 5690-10240 above 664
D 5140-8240&6250-9440above 43
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OGANISATIONAL STUDY AT KS&DL
THE COMPANY HAS FORMULATED THE FOLLOWING HR POLICIES:
1. Carrier Development Plan and Promotion Rules for Officers.
2. Time Bound Advancement Scheme for Unionized Cadre employees.
3. Standing orders applicable to Unionized Cadre employees.
4. KS&DL Conduct and Disciplinary Action Rules 1984 for Junior Officers and above.
5. Medical Attendance Rules.
6. Leave Rules with encashment benefit.
7. LTC / FTA.
8. Conveyance Allowance.
9. Education Advance.
10. Festival Advance.
11. TA / DA Rules.
12. HBA / Interest Subsidy.
13. Delegation of Powers.
14. Probationer’s Rules.
15. Annual Increment.
16. Incentive for adopting small family norms.
PROMOTION
In the company the Promotional Policy has twin objectives because the
career planning is also included.
Ensure high level of expertise and professionalism.
To create certain degree of mobility and job rotation.
The employees below the rank of officers i.e. unionized cadre of employees
are eligible for the promotion after satisfactory completion of seven and five years of
service [Time Bound Advancement Promotion]. The promotion is based on their
grading obtained in the performance done by their Supervisors.
The promotional policies for the officers divided into two categories.
They are Career Development Plan (CDP) and Vacancy Based Selection (VBS).
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CAREER DEVELOPMENT PLAN:
Officers from Grade I to IV come under this plan. The ingredients of this plan are
given below:
Eligibility: Is a minimum of five years of service.
Selection: Is done through staff selection committee.
Mode of selection: Is done through interview conducted by Staff Selection
Committee once in a quarter.
Final selection: Of the maximum of 100 marks earmarked for selection 70
marks is allotted to the performance in the present
grade and the remaining 30 marks are allotted to the performance in the VIVA
during the interview by the Staff Selection Committee. Out of the weight age, the
individual has to score a minimum of 35 from the 70 performance marks and 15
from the VIVA marks to get the final selection.
VACANCY BASED SELECTION: Officers from Grade-V and above come under this
plan. The promotion is effected only when there is a vacancy. The eligibility criteria is a
minimum of five years in the present grade and due weight age is given to experience and
qualification.
PRODUCTION DEPARTMENT:
KSDL as 3 main production plants:
Fatty Acid Plant
Soap Plant
Detergent Plant
Fatty Acid Plant:
The basic raw materials, Oil & fats undergo the splitting & refining process including
hydrogenation at the fatty acid plant.
It is also obtained & used for soap making. The plant has a capacity to process
10,000mt of oils 1 fat.
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Soap Plant:
The soap plant is one of the largest production plants in the country wit an installed
capacity of 26,000 tones per annum.
KSDL’s soap plant has its uniqueness been in a position to process as many as ten
different varieties of soap simultaneously. The sophisticated plant from Italy has a wholly
integrated straight line facility that links up process sequence for higher productivity.
It is a stream line flow through right from raw material preparation to end or the line
collation with the built in facility for continuous fat bleaching & saponification. The finishing
touches are given or high tech universal wrapping machine. This high speed auto wrapper has
the capability to handle soaps of virtually & size or shape.
Detergent Plant:
It has installed capacity of 10,000 tones per annum. To produce spray dried, powder & a
syntax plant for detergent cakes & bars. It produces industrial detergent which is used in the
formulation of wettable pesticide powders for crop protection
Raw Materials: In soap factory they basically use Fatty acid plum oil, caustic soda, salt solution ,chain a
clay, fragrance and perfumery. Perfumery and fragrance they purchase from local market. In
case the particular perfumery is not available in near local market they go for import the
fragrance.
Production Budget:Production budget largely depend up on marketing department. Marketing department made a
sales budget depending upon the sales budget. Depending upon the sales budget production
department starts production.
Inventory Management System: It has already implemented JIT (Just In Time) technique for inventory management. It also
implemented OEM (Original equipment manufacture) for smooth production flow.
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Quality Control:-The quality control department take sample from raw material, semifinish product and finish
product. The sample then send to R&D department from shop floor. If the R&D department
any deviation from actual quality in the product the immediately take corrective action. The
deviation come into existence due to various relation:-
1. It may come due to machine problem.
2. It may come due to raw material.
3. It may come due to labour inefficiency.
The most important thing is that it has a certification of ISO 9001 and ISO 14000.
Safety program:- The company believes that workers are the asset of the organization. They provide hand
gloves, helmet, shoes etc.
If the employees feel secure they will increase their productivity. They trained their
employees for fire extinguishing activity.
Vendor Management:-
Vendor management is one of most important factor any for any organization and the
production department of KS&DL always maintain every possible act for maintaining the
vendors.
The first and foremost work is to find out the vendors then is ask for the vendor to supply the
raw material according to their particular specification.
It also keep watching on delivery schedule from the vendors.if any vendor fails to supply the
particular raw material within the specific time for 2-3 times the company change the
vendors.
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PRODUCTION DEPARTMENT
STRUCTURE OF PRODUCTION DEPARTMENT
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Senior Manager
Manager Manager Manager
Deputy Manager
Works Manager
Senior Engineer
Engineer
Workers
General Manager
OGANISATIONAL STUDY AT KS&DL
4.3 MARKETING DEPARTMENT: The company main products are soaps & detergents which are sold in different parts
of India. There are depots at various places of the country which are controlled by seven
branches. The role of each branch is to ensure that sales activities coming under their control.
Branch Depots
1. Bangalore Hubli, Raichur
2. Chennai Madras, Salem, Madurai, Cochin
3. Hyderabad Hyderabad, Vijayawade, Ananchapur
4. Mumbai Bhiwandi, Ahmedabad, Pune
5. Kolkatta Cuttack, Patna, Gauhati
6. Delhi Delhi, Jaipur, Jullundur
ORG: Operational Research Group report main source of marketing research private agency
which study the competitors consumer demand, market etc that generates the report.
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OGANISATIONAL STUDY AT KS&DL
ORGANISATION CHART OF MARKETING DEPARTMENT
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DGM(MKTG)
AGM (Adv &Soaps) AGM(BB), (CHE),(HYD)
PM(Det&Agb)
PM(CFGS) M(MRIS) M (S)
Chairmen
MD
OGANISATIONAL STUDY AT KS&DL
CHANNELS OF DISTRIBUTION: KSDL manufactures their products i.e. soaps & detergents. After this sent to various
distribution points through agents. The stockiest sells to various retailers hence it reaches to
the consumers.
CHANNEL DISTRIBUTION:
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AM (CFGS)
AM (Mktg)
AM (MRIS)
AM (S)
Off (CFGS) Off (S)
Jr Off Jr OffJr Off
Sr Asst Sr Asst Sr Asst
Jr Asst Jr Asst Jr Asst
Manufacture (KSDL)
Consumers
Retailer
Stockiest (Wholesalers)
Agents
AM (Mktg)
AM(A)
Off (A)
Sr Asst
Jr Off
Jr Asst Jr Asst
OGANISATIONAL STUDY AT KS&DL
As the company markets their products, it ensures that there is proper description of
their product & its distinct features. So that the consumer can be position to understand its
components.
EXPORTS:
KSDL export their products to different parts of world they are:
Australia Italy Srilanka
Berlin Kenya USA
Canada Malaysia Japan
Czechoslovakia Saudi Arabia UK
France Singapore Taiwan
Germany Africa Holland
Well over a century ago, a Company was formed in India by the Maharaja of
Mysore, Queen Victoria, and Sir Alfred Chatterton. From this Company a
legend was born-'Mysore Sandal Soap'. Created then, as now, from the finest,
purest, Mysore sandalwood oil, Queen Victoria's favoured skin care product. To
this day Mysore Sandal Soap still enjoys the distinction of being in use in the
Royal Palaces of the U.K.
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OGANISATIONAL STUDY AT KS&DL
'Mysore Sandal Soap', is the true inheritor of India's golden sandalwood legacy.
Based in Mysore, the makers of this natural soap have over a centuries
experience in this field, and are the largest producers of pure sandalwood oil
and sandalwood soap in the world.
Our supplier's Sandalwood oil products are exported to well established
markets in the UAE, Bahrain, Saudi Arabia, Kuwait, Qatar, South East Asian
countries, North America and South America, and now;
The Sandalwood Soap Company Ltd
is proud to introduce these pure natural sandalwood soap and talcum powder
products to the U.K.
Please do not confuse these products with synthetic 'chemical laden imitators'.
These products are the genuine original creation; totally natural, vegetable
based with no animal derivatives, and of course made with pure 'Mysore
Sandalwood Oil'.
Sandalwood oil has been renowned for its cleansing and skincare enhancing
properties since the dawn of Egyptian times. Queen Cleopatra is said to have
charmed Anthony with both her beauty, and with the magnificent day long fresh
fragrance of sandalwood oil.
FUNCTIONS OF MARKETING DEPARTMENT:
1. Marketing Mix : it is the policy adopted by the manufactures to get success in the
field of marketing
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OGANISATIONAL STUDY AT KS&DL
2. Product Policy: It includes both the turns of development & improvement produced
and existing products. This all totally done by KSDL both marketing & R & D
department.
3. Distribution Policy: The manufactured product of KSDL is supplier to the factory
depots. There are various depots in various states & stored there.
4. Sales & Promotion: the drawback is poor advertising & sales promotion.
5. Packing: Uses different materials for different products, card board boxes synthetic
covers.
6. Market Share: The KSDL production strategy is more expensive when compared to
other product. At present co, holding market share of 18% in south India & 8%
throughout India basis for premium soaps.
PROMOTION:- It use basically they use 3 media for promotion that is electronic media
(like tv,radio),print media news (paper, magazine.),outdoor media ( banner, road side
hording)etc.
MARKETING STRATIGY OF KS&DL:-
The main strategy of marketing department is sale maximization. They use to prepare sales
budget. In anticipating sale budget different depots they choose. In different depots they find
out which product is moving very frequently and more demanded in the market. According to
this data the experience persons are preparing sales budget.
Basically it is noticed that the Mysore sandal soap is acquiring 80% of total sale.
In sales process 2 sales process are involved one is primary sale and secondary sale.
As the sandal wood oil price is increasing day by day ( 35 lakh/ton) they are not able to
minimize the production cost.
As it is a government holding company they cannot spent huge money on advertise ment like
other MNC’s. So the product not so popular in northern part of our country. They introduce
some promotional offer during festivals and introduced some price off promotion on bulk
purchasing.
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Marketing mix Elements of Mysore Sandal Product
• Mysore Sandal does not have much variety but it ensure good quality.
• Talcum Powder
• Agarbatti
PRICE
• Mysore Sandal soap is available in 75gms and its prize is Rs.23.
• It is also available in family pack which carries three normal size soap and its price is
Rs. 72.
PROMOTION
• Mysore Sandal soap does not do much promotion.
• Advertisements are also very traditional type.
PLACE
• Mysore Sandal has few outlets which are specifically for Mysore.
• KSDL has its main unit in Mysore and one branch is also available in Rajajinagar, in
Bangalore.
Outlets
• Mysore sandal is available only in few retail shops and medical shops.
Sales And Promotion
For motivating the consumer KSDL is using print media and television
FINANCE, ACCOUNTS, AUDITING DEPARTMENTSFINANCE:
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OGANISATIONAL STUDY AT KS&DL
It is the life blood of every organization. It is concerned with managerial decision
making. This department is concerned with proper utilization of cash. It identifies the source
of finance where to borrow i.e. ICICI, IRBI, IDBI, Corporation bank etc.
It has abundant of function which can be enumerated as follows:
Effective funds management which is inverted in beneficial projects.
Decision making regarding fixing of cash account.
Obtaining trade credit.
Profit Maximization.
Wealth Maximization.
Preparation of cash budgets.
Systematic approach to working capital management.
Pricing of raw materials & valuation of stores.
To protect financial interest of the company.
AUDIT DEPARTMENT:
KSDL audit wing is headed by interval auditor. Auditing is vital for the company as
it facilitates verifying of all the books of a/c by trial balance, it also comply with
requirements for central excise & income tax purposes.
After the Auditor’s monitor everything they give report which is helpful to the company.
COSTING:
When a company does costing it ensures proper fixation of selling price of the
product, cost control it also help in taking decision.
KSDL use process costing as the production mechanism is systematic it involves
addition of a lot of ingredient in the manufacturing
FINANCE DEPARTMENT CHART:
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Managing Director
General Manager (Finance)
DGM (F)
AGM (F) / A/Cs/Audit/CE I/C (1)
OGANISATIONAL STUDY AT KS&DL
A/Cs C E
RESEARCH DEVELOPMENT & QUALITY CONTROL KSDL its full fledged quality control & R&D single mindedly pursue quality
enhancement. Both departments are headed by highly qualified professionals, committed to
developing products that keep place with customers changing needs & perceptive.
When doing Research they have a target which they get benefits & it enables the
company to forecast the future.
AIMS:
Product process development.
Product process improvement.
Cost reduction
Alternative raw materials
Slow moving & non moving inventory reduction
Technical advice to the management.
Quality plays a very important role in KSDL majority of the products are consumer
goods. So it must satisfy the consumer expectation.
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Bills Section Costing Section JR.OfficerSupr(A/C’s) (V)-2
JR.Asst.
PA to GM (F)
SR.Asst
Chief Mangaer (V)
SR.Asst.
SR.Asst. SR.Asst. OfficerSupr(costing) (3) Vacant
JR.Officers (3)
AM (PR&PF)
JR.Officers
JR.Asst.
SR.Asst. SR.Asst.(1)
JR.Asst.
JR.Asst.
OGANISATIONAL STUDY AT KS&DL
KSDL as 2 QC division
Raw material QC division
Production QC division
OBJECTIVES OF R&D:
To improve the existing production
To adopt new methods of product development
To provide technical support for marketing department
To make improvement in the process of production
To administer & maintain technical library
To maintain customer satisfaction at optimum level.
To retain perfumery content throughout it uses.
To maintain standard weight ,size & finishing.
CHART:-
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AGM(R&D)
MGR(R&D)
Assistant Manager
Junior Officer
S R Assistant
OGANISATIONAL STUDY AT KS&DL
DIVISION OF KSDL:
3 manufacturing units all over India
1. KS & DL Bangalore Division
2. Mysore Division
3. Shimoga Division
STORAGE DEPARTMENT:In KSDL there are about 8 stores namely:
1. Packing Materials
2. Engineering Goods
3. Perfumery Stores
4. Oil & Fats Stores
5. Detergent finished goods stores
6. Fuel & Serviceable stores
Types of stores:
Perfumery stores
Chemical stores.
Packing material stores.
Oil & Fats Stores.
Finished goods stores
These stores play a great role in maintaining of required stock. It also facilitates
maintenance of suitable store organization structure. It monitors the procedures of the receipt.
Materials are issued on the basis of FIFO.
WELFARE DEPARTMENT : KSDL welfare department can be classified into 3 sections namely,
1. Statutory
2. voluntary
3. Non statutory
a) Statutory :
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OGANISATIONAL STUDY AT KS&DL
KSDL welfare association is based on employees contributions, interest carved.
Canteen facility
First aid
Provident Fund
b) Voluntary benefit :
workers education class conducted by the central board
Inspection of fittings
Dust nuisance
Toxic gas nuisance
c) Mutual :
Employees get 3 pair of uniform at every 2 years & a Pair of shoes for
every year
Cultural Recreations
Leave facilities
Employees Co-operative society which give loan on credit
Employees house building society
WELFARE MEASURES:-
1) Maintenance of canteen.
2) First aid and medical facility.
3) Administration of labour law.
4) Promotion of cultural activity.
5) Workers education scheme.
6) Administration of safety measures.
7) Employee counciling ,settlement of accounts & accidents.
MAINTENANCE DEPARTMENT: Effective maintenance is the goal of the company. The areas of maintenance are:
Mechanical Maintenance
Electrical Maintenance
Civil Maintenance
Proper maintenance results to:
Reduction of overload
Cost Reduction
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Greater Safety of equipment & workers
Delivery schedule is maintained.
This department contributes also working progress of the company.
MATERIALS DEPARTMENT: Materials are obtained at right time, right quality at right place from right source &at
right cost which leads smooth flow of production.
Objectives:
Maintaining continuity of flow of materials
Effective control of inventories
Coordination
Growth of the organization
Maintaining ethical organization
It has been divided into 5 sections:
Oil & fats section
Perfumery & aromatically section
Packing materials section
Chemical section
Miscellaneous & Engineering stores section.
Disposals
Centralised finished goods stores.
FUNCTIONS OF MATERIAL AND STORE DEPERTMENT:-
The functional process of material and store department are as follows:-
At first the purchase department fixed the production budget and according to this
production budget they sent the bills of material for other department.
Then other department check out the present inventory and send the required
inventory to the production department.
After receving this the production department pace order to the vendors.
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To decide to place order there is a committee called PRRC(Purchase, production,
receive committee). The committee approved the purchase order.
After receiveing the order the GRR report is prepared. It is goods Receive Report.
The concern person used to take sample randomly from the order received and check
the quality.if the quality is not matched with the specification the order get return.
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Dy Gen Manager(MTLS & Strs)
AGM(MTLS)
AGM(Strs)
MGR(MTLS)
Assistant
MGR(Strs)
Assistant
Junior officer Junior officer
Senior Assistant Senior Assistant
Junior Assistant Junior Assistant
Attainder Attainder
OGANISATIONAL STUDY AT KS&DL
SKILLS:
The term “skills” includes those characteristics, which people use to describe a
company. Organization have strengths in a number of area but their key strengths are
dominant skills are few. These are developed over a period of time of the result of the
interaction of a number of factors performing certain tasks successfully over a period of time,
the kind of people in the organization, the top management style, structure, the management
systems, the external environmental influence etc. Hence when organization makes a
strategic shift it becomes necessary to consciously build new skills.
Employee’s skills in an organization will be unique, this may be due to their
experience in the place of work, and the similarity may also due to influence of the similar
culture.
However every person according to his traits possesses his own talents and special
characters. This cannot be generalized skill among them.
The employees of KS&DL have different skill, which are relevant for their work. As
it is common in big organizations, he also controversies between departments which can be
solved by discussions and by conducting some interactive programs.
STYLE OF MANAGEMENT: Decision-making is centralized with the head office. Authority is given to unit in-
charge to take decision in day-to-day minor matters & other urgent matters.
Decision-making depends on the authority & responsibility conferred on each
individual & thus it’s distributed based on designation & position held.
In important matters, meetings are held to seek opinions of top management & various
department manager & the decisions are taken & implemented.
Decision-making is co-ordinate & done with wide consultations of top management of
department manager’s consultation which gives best possible gains.
STRATEGY: Strategic planning is about asking questions, more than attempting to answer them.
Strategy formulation entails a search for a different frame of reference. It is the quest for a
new business paradigm. There are two types of paradigms that apply to management, namely
the business and the organizational or managerial paradigms. The business paradigms define
a company’s position in the market place with respect to customers, technology and products.
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Strategy is a choice of direction and action; the company adopts to achieve its
objectives in a competitive situation. Any statements on overall of functional strategy that the
company may wish to share are:
Improvement in the existing products.
Their future plans include launching of new products.
The cost control exercise is in consolidation.
Introduction of cost effective substitutes without compromising on quality
Development of new perfumes, soaps detergents, Agarbathies, creams and shampoos.
MANAGEMENT INFORMATION SYSTEMS DEPARTMETN: A. Accounting System:
Financial statements are prepared under the historical cost convention on an accrual basis
and comply with the accounting standards refer to sec 211 (3c) of the companies Act 1956.
B. Costing System:
Process costing.
C. Inventory Control System
ABC analysis for stock control.
FIFO method for issuing materials.
Computerized accounting system for stores.
D. Remuneration System:
1. Time rate system is followed to employees.
2. Government fixes the remuneration to executives
E. Performance Appraisal System:
Confidential report is prepared by heads of various departments for systematic
judgment of the subordinate by authority to assess the standard of work & overall
performance.
INVENTORY CONTROL SYSTEM:STORES DEPARTMENT:
KS&DL has well- managed stores department for each of the three divisions viz, soaps,
detergent & fatty acid division in the factory, there are separate miscellaneous stores
department for raw material, finished goods and tools.
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Objectives;
Assuring the availability of raw material at right quantity.
Maintenance of economical and uninterrupted flow of production activities and
finally to ensure minimum blockage.
Achieving maximum efficiency in production and sales with least investment in
inventory.
.
STAFF: As any employer, KS&DL follow ethical employment standards wherever it operates
with a goal in mind company guarantees.
1. To fulfill its entire legal obligation in terms of employment payments and benefits
practices.
2. Adequate and timely training for every one for the job for which they are employed.
3. Career advancement related to performance and experience.
Benefits provided by KSDL: Monetary benefits are basic wage allowances, employee’s contribution to PF.
Employee state insurance, bonus, pension gravity etc.
Fringe benefits like housing, food canteen, education to children, medical facility,
holiday pay, recreation etc.
Allowances:The gross salary includes basic pay and
1. DA
2. City compensatory allowance 5% of basic pay.
3. HRA 20% of B.P who resides in rented house.
4. Conveyance allowance, Rs.595 per month for workers & Rs.400 for executives.
Family Travel Allowance: Rs.350 to 1000 per year for an employee.
5. Shift allowance: 3 shifts,
1st Shift: 6.00AM – 2.00PM
2nd Shift 2.00PM-10PM Rs.15 paid
3rd Shift 10.00PM-6.00PM
6. Leave facilities: 18 days privilege leave, 7 days casual. 15 days sick leaves
7. Canteen facility
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8. Bonus: It is declared within 8 months after closing the accounts the management has
declared 20% bonus for the current year
9. Increments
10.P.F
Medical benefit:
Workmen card: Domiciliary Rs, 400/-per month is given along with wages &
Rs.150000/-per annum for hospitalization.
Office card: the co, gives actual cost over & above the entitlement for major diseases.
SHARED VALUES: Values:
Values refer to the institutional standards of behavior that strengthen commitment to the
vision, and guide strategy formulation and purposive action. The core values are shaped
around the belief that enterprises exist to serve society. In terms of this belief, profit is a
means rather than an end in itself a compensation to owners of capital linked to the
effectiveness of contribution to society and the essential ingredient to sustain such enlarged
societal contribution.
Thus company has embraced an extended role of trusteeship that reaches beyond the
assets reflected in the balance sheet to encompass societal assets. An unwavering
commitment to integrity, ethical conduct, meritocracy, teamwork and abiding concern for
stakeholders are at the heart of your company’s value system.
Customer satisfaction
Committed to total quality.
Cost and time-consciousness.
Innovation and creativity.
Trust and team spirit.
Respect for individuals.
Integrity health and ethics.
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SWOT ANALYSISSTRENGTHS
The factory is located in the heart of the city & has all infrastructure facilities.
The company has modern manufacturing facility with maximum capacity, brand
loyalty of consumers and has 90% of sandal soap market, foreign technology to
suit indigenous condition due to government participation, little financial crisis
with backup from government.
A very good dealership network, which ensures that the products reach every
loop and corner
A very little competition for its major products sandal soap.
An ISO 9002 certified company has its own brand image.
An ISO 14001 company, which commits to reserve the natural environment in
the production of its quality products to the satisfaction of its customers.
Diversified product range keeps the company stable.
Abundant availability of raw materials.
Two sandalwood oil factories in Shimoga and Mysore, which produce 75% of
world’s sandalwood oil.
WEAKNESS:
Slow growth rate 6.2 growths over 40 years against the product of 80%.
Power intensive: dependent on power may miscarriage here results in under utilization
of capacity.
Low turn over resulting in low profits.
Defective marketing strategy lacks effective advertising and publicity.
Needs updating with times in terms of plant and machinery.
R&D is not effective in as much as it has not made any brake through in new products.
The large proportion of the target area is upper middle class and upper class people, it
has very few offer to lower middle class.
It has only 8% of the total detergent market share.
Due to lack of direct sales, debts with many dealers turning bad.
Unskilled labor coupled with excess labor hampers profitability.
OPPORTUNITIES:
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1. The toilet soap and the detergents market is an over expanding industry and a major
company likes KS& DL with its manufacturing expertise can call the shots if it
reaches peak manufacturing capacity.
2. Good export market should tap foreign market vigorously.
3. At present it has Good raw material sources to enhance production.
THREATS:
1. Competition from other global leaders like HLL.
2. Government interference may reduce growth potential.
3. As the company depends on forests for its main raw materials makes the company to
find chemical alternative to sandalwood.
4. To protect the financial interest of the company.
ANNUAL REPORT OF KSDL Operational performance
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Production :-
Total – Rs. 17,460.20 lakhs as against Rs. 14256.86 lakhs
SINo
Class of GoodsActual production in metric tons
2008 – 09 2007 – 0801 Soaps 7199.810 6452.91702 Detergents 2814.466 1871.49703 Sandal wood oil 1.068 1.15204 Agarbathies 245.095 208.66105 Talcum Powder 162.198 158.536
Sales :-
Gross = Rs. 19,006.53 lakhs as against Rs. 16,247.74 Net = Rs. 16,939.19 lakhs as against Rs. 14,552.85
SINo
Class of Goods
Sales (Rs. In lakhs)
2008 – 2009 2007 – 2008
Quantity in M tons
Value Quantity in M tons
Value
01 Soaps 7555 14,808.29 7097 13,006.3802 Detergents 2813 914.96 2007 577.5403 Sandal wood oil --- 28.37 --- 28.63 04 Agarbathies 395 588.88 206 578.6505 Talcum Powder 170 262.61 181 323.7706 Other
TOTAL
--- 336.08
16,939.19 ---
37.88
14,552.85
PROFIT & LOSS ACCOUNT FOR THE YEAR
ENDED 31 ST MARCH 2009
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PARTICULARS AMOUNTRs. Rs.
INCOMESales 1,69,39,19,368Less: Excise duty 16,02,15,837
Net sales 1,53,37,03,531Other income 6,06,23,797
1,59,43,27,328Increase/(-) Decrease in stock 7,03,74,213
1,66,47,01,541EXPENDITUREMaterials Consumed(include trading items)
801928343
Other Expenditure 73,44,42,910Depreciation 39,69,038 1,54,03,40,291
Operating Profit /Loss 12,43,61,250Less: Interest and Finance Charges 72,76,261
PROFIT BEFORE TAX 11,70,84,989Less: Provision for Taxation(i) Current Tax 1,85,00,000(ii) Fringe Benefit Tax Deferred Tax Asset
21,28,8282,03,58,318
PROFIT AFTER TAX 11,68,14,479
Prior Period Income /(-)Expenditure
1,40,78,609
13,08,93,088Profit brought forward previous year 13,68,26,041
Profit Carried to Balance Sheet 26,77,19,129
The Company earned EBIT (operating profit) of Rs. 4,80,05,540. The profit for the
year before tax (EBT) has been Rs.4,33,57,146. The Net Profit (after providing tax)
carried over to Balance Sheet was Rs. 1,50,70,294.
BALANCE SHEET AS ON 31 ST MARCH 2009
PARICULARS 31/03/2009 31/03/2008
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Rs. Rs. Rs. Rs.
SOURCES OFFUND:1. Share holdersFund:(a) Share Capital 31,82,21,000 31,82,21,000
(b) Reserves &Surplus
26,77,19,129 ----
2. Loan Fund:
(a) Secured Loan 10,72,04,608 1,03,65,536
(b) UnsecuredLoans
8,35,06,504 19,07,11,112 8,99,95,436 10,03,60,972
TOTAL 77,84,20,599 55,54,08,013(b) Net Block 6,97,75,760 5,90,55,325
2. Investment 100 100
3.DeferredTax Assets
5,25,04,866 3,21,46,548
4. Current assetsLoans &Advances(a) Inventories 40,74,52,487 29,60,12,822(b) SundryDebtors
16,35,29,618 14,63,46,670
(c) Cash & BankBalance
25,51,32,910 33,43,85,423
(d) Loan &Advance
21,52,57,572 10,49,44,640
(e) Investment In gratuity trust
5,00,00,000 1,09,13,72,587 3,00,00,000 91,16,89,555
Less: CurrentLiabilities& Provisions(i) Liabilities 24,66,50,794 30,87,52,365
(ii) Provision 20,49,56,560 45,16,07,354 16,67,70,640 47,55,23,005
Net current assets
63,97,65,233 43,61,66,550
5. MiscellaneousExpenditure
1,63,74,640 2,80,39,490
6. Profit & lossAccount -----
--------
Total 77,84,20,599 55,54,08,013
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FINDINGS:It is a company wholly owned by government, so it has to follow the rules made by the
government.
The company is under utilizing its capacity.
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Its production is based on old technology, which leads to more wastes in the production
process.
Consumer awareness of its products is very less except for Mysore Sandal soap.
Its products are not available easily in district places of states other than Karnataka.
There is mismatch in production & sales activity.
Recruitment in the company has been stopped since 1988 due to some circumstances and
recruitments are taking place only in some department.
8. SUGGESTION&RECMENDATIONS
KSDL has a wide variety of products but people are unaware of many products like
Agarbathi, Detergents, Baby soaps etc., as its marketing is very weak. So it should spend both
money and man power on advertising. They should also improve in building up the strong
marketing strategy in order to improve the distribution channels and could be able to increase
the sales other than the Mysore Sandal Soap.
Thus the R&D should work effectively and achieve the break-through in new products
and can make the company to earn more profits. The management should design Training
and Development programmes and Career Development programmes and identify the skills
or knowledge.
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LEARNING EXPERIENCEThe learning experience gained by me during the in-plant training was very much practical
oriented. Mostly all the concepts and theories, which I studied in the class, are applicable
practically.
The overall study of the organization reveals that the company has grown tremendously
since its incorporation from 1918, now it has independent units for manufacturing
sandalwood oils, toilet soaps, washing soaps, detergents, cosmetics, incense sticks and
industrial products. The initially named Government Soap Factory was renamed as Karnataka
Soaps and Detergents Ltd in 1st October 1980.
Its trademark is “Sharabha”, the slogan stands as “Natural products with exotic
fragrance”. The company is a leading sandalwood soap Manufacturer in the country. Even
though they have demand for their products in both domestic as well as international market,
They are not able to establish themselves as market leaders due to various reasons such as
extensive work force, non-utilization of installed capacities of manufacturing, lack of proper
distribution network, lack of expenditure in the areas of advertisements and publicity,
competitions of various soaps and detergents and lack of timely decisions.
The company has an effective human resources department where in the employees are
given excellent packages, incentives and extensive care is taken by providing facilities such
as canteen, medical facilities, motivation classes and extracurricular activities.
I had a great time working on the project, as it gives insights into the working
environment of an organization. The training has exposed me to many facts of an
organization and also helped me to gain practical knowledge, which will go a long way in the
horizon of our career. I became more aware of the soap industry and the role played by
KSDL.
Structure: I got to know how decisions are communicated, the flow of decision
process. The way in which departments are classifieds on the basis of their
functioning. The functions of each departments and its relevance. The way in which
the departments are inter-linked and coordinated.
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Skills: Through skills, how the training needs are satisfied to the employees of
different grades. The different on-job and off-job training given to the employees.
Style: Through style, I got to know how decisions flow from top to bottom in KSDL.
How the production process is planned and worked out. How self managed teams
perform to achieve the targets set by the management.
Strategy: Through strategy, I found how strategies were formulated to overcome the
rigorous competition. Strategy is very much essential for the company to survive in
the market. Supply Chain Management is one of the strategies adopted by KSDL,
through which they are able to reduce the cost of production and increase profitability.
System: System plays an important role of supporting and facilitating various
activities that are carried out within the organization. KSDL adopts latest system.
Overall the learning experience was quite satisfactory which enabled me to
experience a slice of the real and ruthless industry.
Few things which are advantageous theoretically will not be advantageous in practical
such as decisions, bottom up management. Implant certain ideas, changes in certain ideas,
changes in certain policies, methods, etc.
It served an opportunity to integrate practical experience with the theoretical concepts and to
understand functional aspects of the various departments in the organization.
The theory was the base and this inplant training help I relate to reality.
It provided insight knowledge particularly to view the large scale production heavy
equipment and machinery used for production purposes.
EXPOSURE TO THE COMPANY
Related to HRM
The essence of the company is to appraise the performances of the employees and their
achievements, disciplinary actions are taken against the employee’s unity, malpractices,
misconduct as well as the poor performance, etc.
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The company motivates employees through promotion, transfers and few fringe benefits etc.
The company recruits employees through employment exchange.
The training effectively and efficiently envisaged the main purpose of training the employees.
Six months training is given for fresh candidates for all public sector organizations through
KSBDE (Karnataka State Bureau of Public Enterprise).
The Government through the IAS cadre purely represents the Board of Directors, Chairman
and other superiors.
It helped to know major strengths like same recognition, proprietary technology, skilled of
employees.
It made easier to know working condition of the employees at different levels under different
shift timing.
Related to Financial Management
Training gained the knowledge in maintaining the records for regular and easy accounting,
analyzing and controlling and also evaluates the inventory.
Related to marketing
It generated sense of knowledge to understand customer behavior with various attributes at
different situation buying process with the result of customer satisfaction, brand loyalty.
Related to Production
Training served me to understand that production department is the nerve center of all
business activities.
The production method followed is continuous.
It also made me to visualize the safety facilities provided during the production function.
Thus the training gave a unique golden opportunity to understand practically about the
management operation better in KARNATAKA SOAPS AND DETERGENT LIMITED.
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