Final Project 2

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

CMR Center For Business Studies


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.



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.



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.



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



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”.



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.



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.



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.



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.



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.



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.



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.



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:



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



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



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



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)



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)



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)



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



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



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



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.


http://www.mysoresandal.co.in/karnataka.pdf


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.


http://www.mysoresandal.com/


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

- - - - - - -



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.



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



HUMAN RESOURCE DEPARTMENT:

ORGANISATION STRUCTURE OF

HRD DEPARTMENT


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


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



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.



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.



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.



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



Units Postponement of increment by

Absence without pay for more than 30

days less than 40 days.

One month



2 months



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



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



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).



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.



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.



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.



PRODUCTION DEPARTMENT

STRUCTURE OF PRODUCTION DEPARTMENT


Senior Manager

Manager Manager Manager

Deputy Manager

Works Manager

Senior Engineer

Engineer

Workers

General Manager


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.



ORGANISATION CHART OF MARKETING DEPARTMENT


DGM(MKTG)

AGM (Adv &Soaps) AGM(BB), (CHE),(HYD)

PM(Det&Agb)

PM(CFGS) M(MRIS) M (S)

Chairmen

MD


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:


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


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.



'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



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.



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:



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:


Managing Director

General Manager (Finance)

DGM (F)

AGM (F) / A/Cs/Audit/CE I/C (1)


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.


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.


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:-


AGM(R&D)

MGR(R&D)

Assistant Manager

Junior Officer

S R Assistant


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 :



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



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.



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.




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


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.



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.



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



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.



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:



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



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



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



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



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.



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.



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.



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.



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.


Final Project 2

Documents

Transcript of Final Project 2