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    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 tone’s p. a. 1. 2 HISTORY OF THE SOAP The first concrete evidence we have of soap-like substance is dated around 2800 BC. , the first soap makers were Babylonians, Mesopotamians, Egyptians, as well as the ancient Greeks and Romans.

    All of them made soap by mixing fat, oils and salts. Soap wasn’t made and use for bathing and personal hygiene but was rather produced for cleaning cooking utensils or goods or was used for medicine purposes. Fig 1. 1: Image of the first soap The soap has history going back as far as six thousand years. The earliest known soap recipe is credited to the ancient Babylonians around 2800 B. C. Throughout history, soap was medically used for treatment of skin diseases. Common soap bars were invented in the 19th century. 1. 2. 1 The First Soap

    Almost 5000 years ago, it was discovered in ancient Babylonia that mixing animal fats with wood ash and water created a cleansing substance. The first soaps were used in the textile industry and for skin diseases. 1. 2. 2 Who Invented Soap? The Babylonians were the ones who invented soap at 2800 B. C. They discovered that combining fats, namely oil fats, with wood ash produced a substance capable of easier cleaning. The first soap was used to wash wool used in textile industry. 1. 3 INDIAN SOAP INDUSTRY Size of the industry| The Indian Soap Industry includes about 700 companies with combined annual revenue of about $17 billion. Geographical distribution| All the major metropolitan cities| Output per annum| Indian per capita consumption of soap is at 460 gms per annum| Market capitalization| 70% of Indian’s population resides in the rural area and around 50% of the soaps are sold in the rural markets. | Table 1. 1: Indian Soap Scenario 1. 3. 1 History During the British rule the Lever Brothers, England introduced modern sops by importing and marketing them in the country. The first company created was North West Soap Company, the soap manufacturing plant in India situated in the city of Meerut, in the state of Uttar Pradesh. In 1918, Mr. Jamshedji

    Tata set up India’s first indigenous soap manufacturing unit when he purchased the Coconut Oil Mills at Cochin Kerala. Ok Mills crushed and marketed coconut oil for cooking and manufactured crude cold process laundry soaps that were sold locally and It was renamed “The Tata Oil Mills Company” and its first branded soaps appeared on the market in the early 1930’s. Fig 1. 2: Different Brands of soaps Soap became a necessity for the moneyed class by around 1937. Today with increase in disposable incomes all around the world along with India, growth in rural demand is expected to increase because consumers are moving up towards premium products.

    However, in the recent past there has not been much change in the volume of premium soaps in proportion to economy soaps, this was due to this increase in prices which has led some consumers to look for cheaper substitutes. The major players in the market for the personal wash (Soap) market are HLL, Norma and P&G. The toilet soaps market is estimated at 530,000 TPA including small imports where the Hindustan Lever is the market leader. The market has several, leading national and global brands and a large number of small brands. The popular brands include Lifebuoy, Lux, Cinthol, Liril, Rexona and Nirma.

    Premium soaps are estimated to have a market volume of about 80,000 tones. This translates into a share of about 14 to 15%. However, by value it is as much as 30%. 1. 3. 2 Brief Introduction Soaps are categorized into men’s soaps and common soaps. There are few specially soaps like the Glycerin soaps, sandal soaps, specially flavored soaps, medicated soaps and baby soaps. Specialty soaps are high valued which enjoy only a small share of the market in value terms. The market is growing at 7% a year. This means that the incremental demand generation is 5% over and above the population growth.

    With increasing awareness of hygienic standards, the market for the Soaps could grow at a rate higher than 8% annually. Interestingly, 60% of the market is now sourced from the rural sector. This means that the variance between the two segments is not very large. Since upper-end market focus is the urban areas, margin come from the urban sector. Soap is a product for many people and the lathering up can be treasured part of a morning or nightly routine. Whether it might be scented or unscented, in bars, gels, and liquids, soap is a part of our daily lives.

    In the United States, soap is a $1. 390 million (US$) industry with over 50 mass market brands. But in Indian markets the sales potential for soap is only beginning to be realized. At the end of the year 2000, soap was a $1. 032 million (US$) business in India. India is a country with a population of 1,030 million people. With the household penetration of soaps is 98%. People belonging to different income levels use different brands, which fall under different segments, but all income levels use soaps, making it the second largest category in India.

    Rural consumers in India constitute 70% of the population. Rural demand is growing with more and more soap brands being launched in the discount segment targeting the lower socio-economic strata of consumers. Soap manufactures originally targeted their products to the lowest income strata in urban as well as rural areas, positioning their brands as a way to remove dirt and clean the body. For some brands, that positioning persists even today with a focus on removal of body odor and keeping the user healthy.

    However, soap positioning moving towards skin care as a value-added benefit. Soap is primarily targeted towards women, as they chief decision-makers in terms of soap purchase and for Medicated positioning like germ killing and anti-bacterial are marketed to families. About 75% of soap can be bought through the different types of outlets. This is the most common source for buying soap, which usually forms a part of the month’s grocery list. Pan-Beda Shops: These are really small shops, almost like handcarts, and they are primarily set up to dispense cigarettes and chewing tobacco.

    Total annual soap sales by companies marketing their brands at national or state levels is estimated at 14,000 tons of a total soap market considered to be about 126,000 tons. 1. 3. 3 Market Capitalization Fig 1. 3: Brand risk Today in the economy the popular segments are 4/5th of the entire soaps market. The penetration level of toilet soaps is 88. 6%. Indian per capita consumption of soap is at 460 gms are per annum, while in Brazil it is at 1,100grams per annum. In India, available stores of soaps are five million retail stores, out of which, 3. 75 million retail stores are in the rural areas. 0% of India’s population resides in the rural areas and around 50% of the soaps are sold in the rural markets. 1. 3. 4 Size of the Industry Soap The Indian Soap Industry includes about 700 companies with combined annual revenue of about $17 billion. Major companies in the industry include division of P&G, Unilever, and Dial. The Indian Soap Industry is highly concentrated with the top 50 companies holding almost 90% of the market. The market size of global soap and detergent market size was estimated to be around 31 M tones in 2004, which is estimated to grow to 33 M tone in the coming years.

    Toilet soaps account for more than 10% of the total market of soap and detergents. In Asia, the countries like China and India are showing rapid growth in the toilet soap section. Market share of body was estimated to be around 2% in 2004 and is showing signs of healthy growth in these markets. India’s soap market is Rs 41. 75 billion. Indian Soap Industry volume is Rs 4,800 crore. For the purpose of gaining a competitive edge, Indian companies are now re-launching their brands with value-additions to the consumers across India.

    For instance, Hindustan Lever Ltd (HLL) has recently launched a host of toilet soap brands which include Lifebuoy, Lux, Breeze and Liril with value additions. Also is in the process of rolling out “Ayush” ayurvedic soap. The aim is to meet the evolving needs of customers. One of the factors which affect the demand of soaps is the penetration, which the products have in market. In case of soaps this has not been a major issue as the penetration in the rural area is as high as 97% and that for urban area is around 99%. Thus approximately the penetration is around 99% for overall India. 1. . 5 Total Contribution to the economy/sales In terms of market share for Indian Soap Industry the data indicates that HLL had a market share of 64% in the soap market, followed by Nirma at 16. 8% and Godrej at 4. 4%. Nirma’s market share was in the northern region was 21%. The largest contributor to the toilet soaps market in Indian market is Hindustan Lever with the total contribution to the economy and enjoys almost a two- thirds share, with the second ranked Nirma Soaps placed at a distantly low share of 16. 8%. Lux and Lifebuoy have held the away of the market for almost fifty years. . 3. 6 Top Leading Companies In the Rs 4,800-crore Indian toilet soaps market, the leading players include: * Hindustan Lever Limited * Godrej Consumer Products Limited * Colgate Palmolive Limited and * Wipro Consumer Care * Karnataka Soaps and Detergent and Limited 1. 3. 7 Employment Opportunities Indian Soap Industry has tremendous opportunities in the manufacturing companies of soaps for Graduates and post graduates in the areas of Marketing, Finance, Administration, Advertising and even opportunities for the models to act in ads for the soaps. 1. 3. 8 Latest Developments In Indian Soap Industry the entry of new players in the 6,500-crore toilet soaps industry is expected to bring about a new twist in the “Indian Soap Opera”. * ITC Ltd has started investing in aggressive brand-building and product development projects to promote its brands, Fiama De Wills, Vivel and Superia. * Godrej Consumer Products Ltd and Wipro Consume Care Lighting are established players in the Industry which are beefing up their research projects and advertising plans to take on new rivals. * With increasing competition, the Indian Soap Industry is expected to register a healthy growth this fiscal.

    The sector registered a 15% value growth. * Godrej Consumer Products Limited (GCPL) is hiking its advertising budget by 20% to gain high visibility for its brands. CHAPTER 2 COMPANY PROFILE 2. 1 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 resource is sandalwood and it’s isolated from the stretch of forests land in South India that is in 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 in fact 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 and Divan 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 soaps . 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 glycerin per year. The expansion project worth of Rs. 21 lakh 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 Agarbathis it 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. 2. 2 FOUNDERS OF MYSORE SANDAL SOAP Nalvadi Krishna Raj Wodeyar Sir M. Visvesvaraya Sri S. G. Shastri Mysore Sandal Soap is a brand of soap manufactured by the Karnataka Soaps and Detergents Limited (KS&DL), a company owned by the Government of Karnataka in India. This soap has been manufactured since 1916 when Nalvadi Krishna Raja Wodeyar, the king of Mysore set up the Government Soap Factory in Bangalore.

    The main motivation for setting up the factory was the excessive sandalwood reserves that the Mysore Kingdom had which could not be exported to Europe because of the First World War. In 1980, KS&DL was incorporated as a company by merging the Government Soap Factory with the Sandal Oil factories in Shimoga and Mysore. Mysore Sandal Soap is the only soap, in the world made from 100% pure sandalwood oil. KS&DL owns a proprietary Geographical Indication tag on the Mysore Sandal Soap which gives it intellectual property rights to use the brand name, to ensure quality and also prevent piracy and unauthorized use by other manufactures. . 3 BUSINESS As of March 2006, the Mysore Sandal soap held a 6500 ton share among the 450 thousand tones the soap are produced and marketed annually in India. The KS&DL’s soap factory in Bangalore that manufactures the Mysore Sandal Soap is one of the largest of its kind in India having an installed capacity to produce 26,000 tons of soap per annum. KS&DL had sales of Rs 1. 15 billion (about $ 28. 75 million) in the year 2004-2005 with the Mysore Sandal Soap having an average monthly sale of about Rs. 75 million ($ 1. 87 million).

    Traditionally, the soap has not been marketed in a high profile manner and only during the year 2006, M. S. Dhoni, the Indian cricketer was selected as the first brand ambassador of the Mysore Sandal soap. Other marketing strategies being employed to market this soap include a scheme where the distributors who meet the targeted sales could enter a lucky draw where they could win silver or gold coins. About 85% of the sales of the sandal soap are from South Indian states are of Karnataka, Andhra Pradesh and Tamil Nadu. Majority of the users of this soap are above forty years of age and it is yet to gain more acceptance by the youth in India.

    Apart from the regular, Mysore Sandal Soap, KS&DL has also introduced the Mysore Sandal baby soap to target this share of the market. However, KS&DL is facing issues like shortage of sandalwood which has resulted in the company using only 25% of the manufacturing capacity of its factory leading to a lesser production of soaps. The main reason for this is the depletion of sandalwood reserves in the state of Karnataka. To overcome this, KS&DL has also started procuring sandalwood by bidding in the open market and is also considering importing the wood from other countries.

    The absence of a sustained sandalwood regeneration programmed has a taken a big toll on sandalwood reserves in Karnataka. This is a great irony in a State that once set up factories to use up its excessive reserves and wears two GI (geographical indication) tags on its sleeve on account of its historic association with the precious wood. 2. 4 RENAMING OF THE COMPANY On Oct 1st 1980, the Government Soap Factory was renamed as “KARNATAKA SOAPS AND DETERGENTS LIMITED”. The company was registered as a Public Limited company. Today the company produces varieties of products in toilet Soaps, Detergents, Agarbathis and Talcum powder.

    KSDL has been built up with rich tradition for the quality of its products. The Karnataka State is the original home of the sandal oil, which uses Original perfume sandalwood in the manufacturing of Mysore Sandal Soap. It is also known as the “FRAGRANT AMBASSADOR OF INDIA” 2. 5 TRADEMARK OF MYSORE SANDALSOAP 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. 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. 2. 6 SLOGAN “NATURAL PRODUCTS WITH EXOTIC FRAGRANCE” 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. 2. 7 KSDL AT GLANCE Incorporated Name | Karnataka Soaps and Detergents Limited| Address| Karnataka Soaps and Detergents LimitedBangalore Pune HighwayPost Box No 5531Rajajinagar, Bangalore- 560055 | Phone No| 08023377691/23370469/23371103|

    E Mail | [email protected] com | Website| www. mysoresandal. com| Year of Establishment | 1981| Constitution| Wholly owned by Government of Karnataka| Management| Government of Karnataka nominates/appoint Board of Directors, Chairman and MD | Renamed | 1980| Trademark| The trademark is SHARABHA. It is the Body of lion with the head of an elephant means blending the majesty of lion with strength of an elephant. | Production Range | Toilet Soaps, Bar Soaps, Detergents Cakes Powders, Agarbathis, Cosmetics, Sandalwood oil. Process Known How| This facility is a pioneer in the manufactures of various soaps and Technology Imported from Italy | Capacity of the Unit | Licensed capacity is 26000 metric tons| Plant| AT BANGALORESoap PlantDetergent PlantFatty Acid PlantAT MYSORESandalwood oilAgarbathisAT SHIMOGASandalwood oil| Table 2. 1: KS&DL Information 2. 8 BIRDS EYE VIEW OF KSDL:- 1918| Government soap Factory was started by Maharaja of Mysore with the capacity of 112 MTs of soap and detergents near Cubbon Park, Bangalore and the Mysore Sandal Soap was introduced into the market for the first time. 1932| Toilet soap production capacity was enhanced to 750MTs/Annum. | 1944| The second Sandalwood oil extraction plant was started in Shimoga. | 1950| The factory output rose to 500 M. Tons with the following modification 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 glycerin per year. | 1957| Factory shifted its operation to Rajajinagar industrial area. | 1965 | Started exporting its products to various countries. | 1967| Celebrated t Golden Jubilee. | 1970| Production capacity we increased to 6000MT’s/Annum in a phase wise with parallel modernization of various manufacturing equipment’s. | 1974|

    Mysore sales international limited was appointed as the sole selling agent, for marketing its products. | 1975| Rs4crore Synthetic Detergent plant for manufacture of Detergent cake and Detergent powder was installed with Italian technology. | 1977| Successful manufacture and marketing of POINT Detergent powder which posed a great threat to the already existing competitors of the detergent products in the country. 1980| Government Soap Factory was converted into a public sector Enterprises and the company incorporated on 9th July and renamed itself as KARNATAKA SOAPS. | 1981| Rs 5crore worth Fatty acid unit was established to utilize indigenously available minor seed oil as the raw material for soap manufacturing and to produce Glycerin and Steric acid. | 1984| Manufacturing of premium quality of Agarbathis at Mysore division. | 1985| Production capacity was raised to 26000M. Tons Per Annum. A large variety of toilet soaps at attractive shapes, colors and fragrances introduced to meet the varieties and tastes of consumers. 1987| Company has taken over the marketing activities from M/S. MSIL and established its own marketing network by opening seven branches all over India. | 1992 | Company has faced very still competition after liberalization in the country from different multinational companies. 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 and the company stated making profits. 1999| Company was certified with ISO 9001:1994 certification by BSI for its effective implementation of quality management system. Later the company launched MYSORE SANDAL GOLD-125gms and MYSORE SANDAL BABY-75gms in the premium segment. | 2000 | Company was certified with ISO 14001certification by BSI for its effective implementation Environment Management system. | 2003| The entire carried forward loss of Rs 98crores wiped out and in May BIFR, declared the company to be out of its purview. The Company is making profit continuously, It is the only State Public Sector unit that has come out of

    BIFR | 2004| The ISO-9002 was upgraded to ISO-9001-2004, Quality Systems. | 2005| a) Launched new herbal care soap of 100gm contains 19 herbs and leaves extracted perfumes. b) Geographical indication registry * Mysore Sandal Soap * Mysore Sandalwood Oil | 2007| ICWAI national award for excellence| 2008| KSDL prime products, Mysore Sandalwood Soap and Oil are accredited with Geographical Indications as the Intellectual property of India as per the Geographical Indication of goods Act 1999| 2008| It introduced hand wash liquid under the trade name of Herbal Hand wash and Rose Hand wash liquids.

    Company has also introduced liquid Detergent under the trade name of KLENOOL liquid with different various for Floor wash, Dish wash and Automobile wash. | 2009| KSDL established in Home state of the art manufacturing facilities for manufacture and filing of Mysore Sandal Talcum Powder and Mysore Sandal Baby Powder. Company has re-introduced the Talcum powder variants with new outlook of containers. | 2009 | KSDL upgraded the ISO 9001-2008 policy for Quality Management System and ISO-14001-2004 Environment Management System. 2010| Won Karnataka Chief Minister’s “RATNA AWARD” for profited government | 2011| The Research and Development Department of the company is in the process of development “THE MILLENNIUM SOAP” new products like super specialty, body wash, liquid soap, room fresheners, body spray perfume and pure sandalwood powder in small pouches. | 2012| India’s most expensive Mysore Sandal Millennium soap launched on January 25th worth rupees 720per soap. | Table 2. 2: Eye View of KS&DL 2. 9 OBJECTIVES OF KS&DL * To attain self-reliance * To serve the national economy 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 2. 10 POLICY OF KS&DL i. Seek purchase of goods and services from environment responsible suppliers. ii. Communicate its environment policy and best practices to all its employees’ implications. ii. Set targets and monitor progress through internal and external audits. iv. Strive to design and develop products, which have friendly environmental impact during manufacturing. v. Reuse and recycle materials wherever possible and minimize energy consumption and waste. 2. 11 INFRASTRUCTURAL FACILITIES 1. Canteen facility 2. Library 3. Car stand 4. Waiting room 2. 12VISION, MISION AND QUALITY POLICY VISION I. Keeping pace with globalization, global trends & the State’s policy for using technology in every aspect of governance. II.

    Ensuring global presence of Mysore Sandal products while leveraging its unique strengths to take advantage of the current Tech scenario by intelligent & selective diversification. III. Secure all assistance & prime status from Government India all Tech alliances. Further, ensure Karnataka’s pre-eminent status as a proponent & provider of Tech services to the world, nation, & private sectors. MISION I. To serve the National economy. II. To attain self-reliance. III. To promote purity & quality products IV. To maintain the Brand loyalty of its customers. V.

    To build upon the reputation of Mysore sandal soap based on pure sandal oil. QUALITY POLICY ISO 9001: 2008 KSDL with a tradition of excellence of over eight decades is commercial to customer delight, through total quality management and continuous improvement through the involvement of all employees. KSDL 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 purpose during October 1998 with a mission statement.

    The company gives initial training including conducting employee’s awareness programmed 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 end of March to the Bureau of Indian Standards. Obtained the certificate by the end of the 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 2004-2005. ISO-14001:2004 ISO 14001:2004 sets out the criteria for an environment management system and can be certified to it does not state requirements for environmental performance, but maps out a framework KS&DL can follow to set up an effective environmental management system , it can be used by any organization regardless of its activity or sector. Using ISO 14001:2004 can provide assurance to company management and employees as well as external stake holders that environmental impact is being measured and improved.

    The benefits of using ISO 14001:2004 can include: * Reduced cost of waste management * Savings in consumption of energy and materials * Lower distribution costs * Improved corporate image among regulators, customers and the public 2. 13 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 center of southern part of India the Government Soap Factory claims preferential treatment for expansion programmed in view of availability of exotic natural Sandalwood oil. 2. 14 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 the all over the world and it has demand for this product.

    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 and Gamble| 10%| KSDL| 11%| Others| 5%| Table 2. 3: Competitors information and their market share COMPETITORS OF KS&DL PRODUCTS AND SERVICES: KS&DL is facing competition from the big Corporate as well as MNC’s. Some of its main competitors are:- * M/s Hindustan Unit Lever Ltd. * M/s Godrej Soaps Private Ltd. , * M/s Proctor and Gamble * M/s ITC Limited * M/s Nirma Soaps Private Ltd. , * M/s Jyothi Laboratories * M/s Wipro 2. 15 ACHIEVEMENTS 1. Government of Karnataka Department 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 for the quality assurance. 5. ISO 14001-2004 in the year 2000 for good environmental auditing standard 2. 6 AWARD 1. “Export Award” for the year 2006-2007 for the Excellence in Exports Market. 2. “National Award for Excellence in Cost Management” and Good Performance for the year 2008 3. “Chief Minister’s Rathna Award” for the year 2009-10 3. 17 CORPORATE SOCIAL RESPONSIBILITY Madilu Yojane Post Natal Kit Karnataka Soaps & Detergent also introduced in 2008 a Post Natal Kit for catering to the needs of the families through Children & Family Welfare Department, Government of Karnataka. This is being given freely by the Government of Karnataka; mainly to the mothers post-delivery.

    This kit was neatly packed within a carton box and supplied. This has been well accepted by the mothers during post-delivery. 2. 18 FUTURE GROWTH AND PROSPECTUS: •Introduction of anti-bacteria, herbal transparent soap, made out of the 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. •Cost-reduction in all areas. •Instant decision making in certain procurement activities. •Timely introduction and implementation of market driven decisions. •Ensuring effective internal control. CHAPTER 3 STRUCTURE OF ORGANISATION 3. 1 BASIS OF DEPARTMENT KSDL is a manufacturing concern of moderately large size.

    It facilitates effective utilization of manpower and resources and it is a simple, economical and reasonable organization pattern. 4. 2 LEVELS OF ORGANISATION The organization of KSDL consists of 4levels, they are: 1. TOP LEVEL consisting of BOD’s and M. D 2. SECOND LEVEL consisting of Directors of Finance and Special Officers 3. THIRD LEVEL consisting of senior managers, deputy managers and officers 4. FOURTH LEVEL consisting of clerks, Assistants and Attendees. 4. 3 The Seven Elements The McKinsey 7S model involves seven interdependent factors, which are categorized as their “hard” or “soft” elements

    Fig 3. 1: 7S Model “Hard” elements are easier to define or identify and management can directly influence them. These are strategy statements; organization charts and reporting lines; and formal processes and IT systems. “Soft” elements, on the hand, can be more difficult to describe, and less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful. Placing Shared Values in the middle of the model emphasizes that these values are central to the development of other critical elements.

    HARD AND SOFT ELEMENTS Hard Elements | Soft Elements| StrategyStructure Systems| Shared ValuesSkillsStyleStaff| Table 3. 1: The elements of hard and softness. All Ss are interrelated, so a change in one has a ripple effect on all the others. It is impossible to make progress on one without making progress on all. Thus to improve your organization, you have to master systems thinking and pay attention to all of the seven elements at the same time. There is no starting point or implied hierarchy- different factor may drive the business in any one organization. Shared Values

    Shared valued are commonly held beliefs, mindsets, and assumptions that shape how an organization behaves – its corporate culture. Shared values are what engender trust. They are an interconnecting Centre of the 7Ss model. Values are the identify by which a company is known throughout its business areas, what the organization stands for and what it believes in, it central beliefs and attitudes. These values must be explicitly stated as both corporate objectives and individual values. Structure Structure is the organization chart and associated information that shows that reports to whom and tasks are both divided up and integrated.

    In other words, structure describe the hierarchy of authority and accountability centralized, functional division (top –down); decentralized (the trend in larger organizations); matrix, network, holding, etc. These relationships are frequently diagrammed in organization charts. Most organization charts. Most organization use some mix of structures – pyramidal, matrix or networking ones- to accomplish their goals. Strategy Strategic are plans of an organization formulates to reach identified goals, and a set decisions and action aimed at gaining a sustainable advantage over the competition.

    Systems Systems define the flow of activities involved in the daily operation of business, including its core processes and its support systems. They refer to the procedures, processes and routines that are used to manage the organization and characterize how important is to be done. System includes: 1. Business system 2. Business Process Management System (BPMS) 3. Management Information System (MIS) 4. Innovation system 5. Performance management system 6. Financial system/capital allocation system 7. Compensation system/reward system 8. Customer satisfaction monitoring system

    Style “Style” refers to the cultural style of the organization, how key managers behave in achieving the organization goals, how managers collectively spend their time attention, and how they use symbolic behavior. How management acts more important that what management says. Staff “Staff” refers to the numbers and types of personnel within the organization and how companies employee and shape basic values. Skills “Skills” refers to the dominant distinctive capabilities and competencies of the personnel or the organization as a whole. 4. 4 RELATION TO COMPANY Style

    Here style, means that company employees share a common way of thinking and behaving. Also it refers to the style of leadership of the management. The style of management at KSDL is participating style. Strategy The concept of strategy purpose, vision, objectives, goals and major action plans and policies a strategy reflects a company’s awareness of how, when and where it should complete, against it should compete, and for what purpose it should compete. Shared Value Shared values refer to set values and aspiration that go beyond the conventional formal statement of corporate objectives.

    Their goals are the fundamental ideals around which a business is built. They are main values culture of an organization is usually determined by the sum of the values, benefits and working practices that exist within organizational operational standards. System By system we mean that all procedures, formal and informal that make the organization go, today by day and year. Capital budgeting system, training system, cost accounting procedures budgeting system. If there is a variable in our model that threatens to dominate the other, if could well be system do you want to understand how an organization really does get things done?

    Look at the system want to change an organization without disruptive restructurings? Try to change the system. If a manufacturing or production company is trying to come up with an overall corporate strategy. Textbook portfolio theory seemed to apply: find a good way to segment the business, decide which segment in the total business portfolio is most attractive, and most heavily in those. The only catch: reliable cost data by segment where not be had. The company’s management information system was not adequate to support segmentation. Electronic Data Processing System

    There is an electronic data processing system which stores all kind of information which is required by the organization in doing its business. Information regarding customer information relating to the production, information regarding payment done by the customers, information regarding performance of the organization, financial information regarding its employee etc. Human Resource Information System There is an HR package which stores all employee profile such as employee ID, code number, joining date, place of posting, name, personal profile, designation, experience, pay scale and history.

    On the basis of this data rating is done. It also gives information of overall employee structure like number of persons joined in a month, transfer, promoted, loan taken category, etc. Structure Departmentation is very essential for the efficient and effective working of an organization. Studying about the functioning of the departments in one of the most critical jobs, each department in the organization is inter-related and interdependent with other organizational departments. The various departments in the organization are dependent on each other in various aspects in order to achieve the objective of the whole organization.

    The co-ordination, co-operation among the departments helps the organization in achieving its goals easily. But this is only possible when there is good communication, co-ordination and understanding between the employees of various departments. 4. 5 ORGANISATION CHART OF KSDL KSDL 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. Fig 3. 2: Organization chart CHAPTER 4 FUNCTIONAL DEPARTMENTS OF KSDL 1. Human Resource Department 2. Production and Maintenance Department 3.

    Marketing Department 4. Finance/Accounts and Auditing Department 5. Research and Development 6. Stores Department 7. Welfare Department 8. Materials Department 9. Management Information System Department 5. 1 PRODUCTION DEPARTMENT INTRODUCTION Managing the production system is a function of Production Management. This is one branch of management the research on which has started late. Though much research has been done on the subject a verse as, studies with the Indian perspective are lacking. “Production Management is concerned with those processes which convert the inputs into the outputs.

    The inputs are various resources like raw materials, men, machines, methods, etc. and the outputs are goods and services” -H. A. Harding A well-organized production function can offer competitive advantage to a firm in the following areas. •Higher quality •More Inventories •Shorter new product lead time •Better customer satisfaction •Greater manufacturing lead time •Reduced wastage Functions of Production •Size and capacity of production •Location •Product facility •Automation •Cost of production •Inventory The production department is one of the core parts in every process based industry.

    In addition, it plays a vital role in the organization for smooth going in every industry. STRUCTURE OF PRODUCTION DEPARTMENT Senior Manager Manager Deputy Manager Works manager Senior engineer Engineer General Manager Manager Manager Workers Fig 4. 1: Structure of Production Department 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 Fig 4. 2: Work Flow PRODUCT MANUFACTURED BY KSDL: 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| Mysore Sandal Millennium| 150| Table 4. 1: Different Production of Toilet Soap GIFT RANGE|

    SBT| SJR| 06 IN01| GOLD SIXER| Table 4. 2: Various gifts range DETERGENTS NAME OF THE PRODUCT| UNITS IN GRAMS| Mysore Detergent Powder| 1000| Mysore Detergent Powder| 500| Mysore Detergent Cake| 125| Mysore Detergent Cake| 250| Table 4. 3: Different types of manufacturing detergents TALCUM POWDERS NAME OF THE PRODUCT| UNITS IN GRAMS| Mysore Sandal Talc| 20,50,100,300| Mysore Sandal Baby Talc| 100,200,400| Table 4. 4: Different manufacturing talcum powders AGARBATHIES NAME OF THE PRODUCT| Mysore Sandal Premium| Mysore Sandal Regular| Mysore Rose| Naga champa| Suprabhatha| Mysore Jasmine| Paraijata| Sir M. V. 100|

    Bodhisattva| Venkateshwara| Durga| Ayyappa| AlifLaila| Meditation| Table 4. 5: Different types of manufacturing agarbathi PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL SOAP a. Mysore Sandal Soap (75gms,125gms) With the oldest known perfumerymaterial Sandalwood as its mainingredient, the Sandal soaps of KS&DL have a definite niche in the soap market. The oil of Sandalwood recommended in ancient ayurvedictexts for skin care, has excellentantiseptic properties and soothesprickly heat and other skin rashestoo. The Sandal soaps of KS&DL are probably the only soap in the world with pure natural sandalwood oil.

    The reason why they are used the world over for nourishing and softening the skin. This soap is made from purevegetable ingredients and contains natural Mysore Sandal oil. The Product Code for 75 gms- MSS 1000, 125gms- MSS1001. b. Mysore Sandal Bath Tablet (150gms) With the oldest known perfumery material Sandalwood as its main ingredient, the Sandal sops of KS&DL have a define niche in the soap market. The oil of Sandalwood recommended in ancient ayurvedic texts for skin care, has excellent antiseptic properties and so others prickly heat and other skin rashes too.

    The Sandal soaps of KSDL are probably the only soap in the World with pure natural sandalwood oil. The reason why they are used the world over for nourishing and softening the skin. Mysore Sandal Soap available in 17gms, 75gms, 125gms, 150gms and 150gms x 3 packed in a set. This soap is made from pure vegetable ingredients and contains natural Mysore Sandal Oil. The Product Code is for 150 Gms: MSBT 1004 c. Mysore Sandal Baby Soap (75gms) The Soap is specially created for tender Baby skin. The soap is enriched with Natural oils of sandalwood, Almond and Moisturizers.

    The Soap keeps the Baby skin blemish free and lessens the chances of nappy rashes. The Product Code for 75 gms-MSBS 1013 d. Three-In-One Gift Pack – (SJR) 3Tabs (150gmseach) The pack contains three soaps (3 x 150gms each) with the traditional fragrances of Sandal, Jasmine and Rose. The ideal Gift of Fragrance. Each soap is elegantly pleat wrapped in cellophane paper to retain its fragrance. MYSORE SANDAL – The only soap with pure Natural Sandalwood Oil. MYSORE JASMINE – The soap that comes closest to the natural fragrance of Jasmine Flowers. MYSORE ROSE – The gentle fragrance of Roses, keeps you to close to Nature.

    The Product Code: is 3 in 11008 e. Mysore Sandal Gold Soap (75gms,125gms) The glamorous entrant to the Sandal family, the result of intensive research by the Company to bring out the best soap in the Country with pure Sandalwood Oil, Almond oil and Moisturizer. For more who always look for the very best. The Product Code are for 75gms-MSG 1005, 125gms-1006 f. Mysore Rose Soap (100gms,125gms) The dew drop freshness of just plucked roses captured in soap form, to give a feeling of a shower with rose petals.

    The gentle fragrance of roses keeps you close to nature. Product Code is for 100gms: MRS-1017, 125gms:MRS1018. g. Mysore Sandal Gold sixer 6 Tabs (125gms each) The glamrous entrant to the sandal family with the result of intensive research by the company to bring out the best soap in the country with pure natural sandalwood oil, almond oil and moisturizers. Mysore sandal gold soap is available in single pack (1x125gms) and also as a gift pack known as mysore sandal gold sixer (6 x 125gms). Product Code: MSGS 1010 h. Six-In-One Gift Pack 6Tabs (125gms each)

    The ideal gift of fragrance. Each soap is elegantly pleat wrapped in cellophane paper to retain its fragrance. Mysore sandal – the only soap with pure natural sandalwood oil. Mysore special sandal – the soap with pure, enriched sandalwood oil and musk. Mysore jasmine – the soap that comes closest to the natural fragrance of jasmine flowers. Mysore rose – the gentle fragrance of roses, keeps you to close to nature. Mysore sandal classic – the soap with goodness of moisituriser and fragrant sandalwood oil. Mysore lavender – the fragrance of lavender for freshness all through the day. Product Code: 6 in 1-1009 . Mysore Lavender Soap (150gms) Lavender Soaps in various flavors & ranges. The fragrance of lavender for freshness all through the day. The Product Code for 150gms: MLS-1011. j. Mysore Sandal Classic Soap (75gms) Mysore Sandal Classic Translucent soap The only soap of its kind with the careful blending of glycerin and pure sandalwood oil, to moisturise and nourish the skin and with a fragrance that lingers all day long. With a fragrance that lingers all day long. The Product Code for 75gms: MSCS-1007 k.

    Mysore Herbal care (15gms,75gms,100gms) Mysore Sandal Herbal Care is formulation of 1gm essential oils and Herbal fragrances, with neem extracts. The scents of the 1gm herbs which include basil, Citronella, Clove, Eucalyptes, Geranium, Palmrosa, Rosemary and YiangYlang. The Product Code are15gms: MSHC-1019, 75gms: MSHC-1020, 100gms: MSHC-1021. l. Mysore Jasmine Soap (75gms,100gms) The Jasmine Bathing Soap that they Manufacture and Export is known for gentle cleansing with wonderful oil of jasmine flower.

    The Jasmine Bathing Soap is widely appreciated for its good functions of moisturizing and protecting skin. By a regular use of the Jasmine Bathing Soap, one can make its skin tender, smooth and healthy. The soap that comes closest to the natural fragrance of jasmine flowers. The Product Code for 75gms: MJS-1012. m. Mysore Sandal Bath Tablet Trio Contains pure natural Mysore Sandal wood oil along with skin conditioners and moisturizers. The all time favorites Mysore Sandal Soap the beauty secrets of millions gift packed in a set of 3 bath tablets. The Product Code is: MSBTT 1003 . Mysore Sandal Millennium (150gms) This Super Premium Soap is made for all seasons, all kind of users for wellness, nourishment, rejuvenation, soothing, cooling with the enthralling Aroma of pure Sandalwood Oil. DETERGENTS KSDL also manufacture high quality detergents applying the latest spray drying technology with well balanced formulation of active matters and other builder, they provide the ultimate washing powder. 1. Sensor Detergent Powder (1kg/2kg) 2. Mysore Detergent Powder (1kg/500gms) 3.

    Mysore Detergents Bar (250gms) 4. Mysore Detergent Cake (125gms/250gms) Mysore detergent Cake Mysore Detergent Cake is formulated with special dirt – busters for effective removal of toughest dirt on clothes and to give freshness with mild aroma all the day, while wearing. The product is available in variants like – 150gms and 250 gms under the brand name of MDC. Product Code are 150 gms: MDC 1038, 250gms: MDC 1039. Point Excel Detergent Powder The powder is specially formulated with active dirt-busting detergents, stain removing agents, fiber softening agents.

    The New Point Excel Detergent Powder works effectively in top loading, semi-automatic/automatic Washing machines as it is formulated for low foam. The powder can also be used for Bucket wash. The mild fragrance of the powder keeps the clothes fragrant all day long. Product Code for 500gms: MPDP 1036, 1kg: MPDP 1037 Liquid Detergents – Kleenol Kleenol liquid detergent is formulated for multi-purpose use like – dish wash, floor cleaner, general purpose with different variants. The liquid detergent is very easy to use and safe on hands. Kleenol liquid is available in packs like – 1ltr, 5ltrs, 35ltrs and 200ltrs.

    AGARBATHIS Agarbathi Agarbathis are an essential part of all auspicious occasions, spreading a divine fragrance that calms the mind and lifts the spirits. KSDL’s agarbathi portfolio includes the inimitable collection of typical fragrances. Every agarbathi is hand-rolled to perfection. Using a traditionally blended paste made from the best ingredients to provide a soothing fragrance throughout the day. Mysore sandal premium with more powerful sandal fragrance of pure sandal wood oil. Variants – premium 9″ stics packed in a rectangular carton. Regular – 9″ stics packed in a rectangular carton.

    Premium 8″ stics packed in a hexagonal carton. Jasmine Regular Jasmine regular-9″ Agarbathi is hand rolled using a traditionally blended paste made from the best ingredients and perfumed with the fragrance closest to jasmine flowers. Product is available in variants – jasmine roll-8″ stics- 30gms, jasmine rolls-8″stics – 60gms. Meditation Sandal Export Agarbathi’s are an essential part of all auspicious occasions, spreading a divine fragrance that calms the mind and lifts the spirits. KSDL agarbathis portfolio includes the inimitable collection of typical fragrances.

    Every agarbathi is hand-rolled to perfection. Using a traditionally blended paste made from the best ingredients to provide a soothing fragrance throughout the day. Nagachampa Naga Champa agarbathi stics are perfumed with flowery reminant of Naga champa to give nearest natural Champa fragrance. Variants – Nagachampa in pouch – 20stics and 40stics. Rose Regular Rose regular – 9″. Agarbathi is hand rolled using a traditionally blended paste made from the best ingredients. The stics are perfumed to give pleasant and soothing, reminent roseodour. Jasmine Rolls

    Meditation stics are hand rolled using a traditionally blended paste made from the best ingredients and perfumed to give mild, fancy, herbious, tulsi fragrance. Variants – meditation-8″ stics with hexagonal package – 20stics. Sir M. V – 100 Sir M. V. 100 agarbathi is hand rolled using a traditionally blended paste made from the best ingredients. The stics are perfumed to give mild, spicy odour. Variants – sir m. V. 100gms. Product Code is MSAMV 1040 POWDERS Mysore Sandal Talcum Powder Extension of sandal goodness to body talcs. The only Talcum powder containing pure natural sandalwood oil, Rich in cooling and healing qualities.

    In convenient and pretty packs. Keeps one fresh and fragrant all day long. Mysore sandal Tacl is available in 300gms, 100gms & 50gms. Product Code for 50gms: MST 1026, 100gms: MST 1027, 300gms: MST 1028. Mysore Sandal Baby Powder Mysore sandal baby powder nourishes and protects your baby’s skin. Created using the world’s purest sandalwood oil and almond oil. It keeps your baby dry and fragrant thus lessening the chances of a nappy rash. Mysore sandal baby talc is available in 100 & 50 gms packs. Product Code for 50gms: MSBP 1014, 100gms: MSBP 1015. VARIOUS PRODUCTS Wave Cologne Powder LIQUID SOAP

    Wave Herbal Hand Wash Wave Liquid Body Wash Product Code Product Code 200ml: WHLHW 1029 200ml: WLBW 1031 500ml: WHLHW 1030 500ml: WLBW 1032 Hand wash was blended with mixed surfactants added with 19 Natural essential oil perfume and containing aloevera, conditioners and moisturizers to give smoothing effect for a gentle and soft hand.

    The body wash is specially made with mild mixed surfactants added with moisturizers, skin conditioners, aloevera conditions to ensure the skins natural moistures balance and to rejuvenate the skin. This executive product is presented in two fragrant variants of enriched natural sandal and rose. MYSORE SANDAL BILLETS Mysore Sandal Billet is used as a sacred wood in religious functions and during pujas and medicinal purposes across India. Available in minimum quantity of 1kg (With different weights of 50 Gms to 200 Gms). Can be purchased in multiples thereof. Maximum Permissible Purchase Limit per individual to not exceed 3. Kilo Red Sanders OR red sandalwood is only found in the South, in India. This wood has been traditionally used as a sacred wood in religious functions and during pujas, havans [homas] purpose. Red Chandan is also used in ayurvedic medicine. In a Red sandalwood tree (unlike white sandalwood), the wood at the center of the trunk (heartwood) is mainly used for medical purposes. Red sandalwood has various medical uses: Fluid Retention, treating digestive tract problems, purification of blood and treatment of coughs. MYSORE SANDAL ROOM FRRESHNER Spray the rich, world class fragrance of Lovin.

    It’s the fastest way to refresh your home and office. Naturally, fresh, naturally fragrant Lovinneutralises bad odour. Enlivens your day. Lovin Air Freshener offers dual benefits of purifying the air along with imparting lasting and lingering fragrances. They are available in various enchanting fragrances. The brand was introduced by Midas Care Pharmaceuticals Mysore Sandal Dhoop Mysore sandal dhoop is the latest introduction from the house of Mysore sandal soap, which brings the tradition of offering prayers with the divine fragrance of natural sandalwood. It gives pleasant, calm, soothing, holistic experience, while praying.

    Product Code: IS-07 NEW PRODUCTS LAUNCHED 1. Wave Turmeric Soap 2. Wave Hand Wash Liquid Soap 3. Herbal Care Liquid Soap 4. Agarbathis – Mysore Sandal 3 – in – 1 5. 2 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 six 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| . Mumbai| Bhiwandi, Ahmedabad, Pune| 5. Kolkatta| Cuttack, Patna, Gauhati| 6. Delhi| Delhi, Jaipur, Jullundur| Table 4. 6: Different branches in India ORG: Operational Research Group is the main source of marketing research report to the private agency which study the competitors consumer demand, market etc that generates the report. ORGANISATION CHART OF MARKETING DEPARTMENT MD GM (Marketing) DGM (Marketing) AGM (Adv& Soap) AGM (BB, CHE, HYD) AM (Mktg) PM (CFGS) AM (Mkt) AM (A) M(S) M (MRIS) Off (A) PM (Det&Agb) AM (MRIS) AM (CFGS) AM(S) Jr. Asst. Sr. Asst. Jr. Officer Jr. Asst Sr.

    Asst. Jr. Officer Jr. Officer Fig 4. 3: Marketing Department Jr. Asst. Jr. Asst. Off (CFGS) Jr. Asst. Sr. Asst. Off(S) Jr. Officer Sr. Asst. Members of the Marketing Departments GM| General Manager| DGM| DY. General Manager| AGM| Asst. General Manager| BM| Branch Manager| PM| Product Manager| M(S)| Managers(sales)| AM| Asst. Manager| OFF| Officer| Jr. OFF| Junior Officer| Sr. OFF| Senior Officer| Jr. ASST| Junior Assistance| Sr. AAST| Senior Assistance| SR| Sales Representative| Table 4. 7: Designation 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 consumer Manufacture (KSDL) Agents Stockiest (Wholesalers) Retailer Consumers Fig 4. 4: Channels of Distribution 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 are its components. EXPORTS KSDL export their products to different parts of world they are Australia| Italy| Sri Lanka| Berlin| Kenya| USA| Canada| Malaysia| Japan|

    Czechoslovakia| Saudi Arabia| UK| France| Singapore| Taiwan| Germany| Africa| Holland| Table 4. 8: Exporting to other countries 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. . 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 is basically used 3 media for promotion that is electronic media (like TV, radio), print media news (paper, magazine. ), outdoor media (banner, road side hording) etc. MARKETING STRATEGY 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 spend huge money on advertisement 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: I. PRODUCT: Mysore Sandal does not have much variety but it ensure good quality * Talcum Powder * Agarbathie II. PRICE * Mysore Sandal Soap available in 75 gms 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 *

    III. PROMOTION * Mysore Sandal Soap does not do much promotion. * Advertisements are also very traditional type. IV. 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. V. Outlets: Mysore Sandal is available only in few retail shops and medical shops. VI. Sales and Promotion: For motivating the consumer KSDL is using print media and television. 5. 3 FINANCE, ACCOUNTS, AUDITING DEPARTMENT FINANCE 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. FINANCE DEPARTMENT CHART GENERAL MANAGER (Finance) AGM (Finance) AGM (Costing) /AGM (Bills) MGR A/C’s MGR MGR (PR&PF) Junior Officer Supervisor Senior Assistant /Stenographer Junior Assistant Junior Officer Supervisor Senior Assistant /Stenographer Junior Assistant MGR (LS) Junior Officer Senior Assistant /Stenographer Junior Assistant Fig 4. 5: Finance Department 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. AUDITING DEPARTMENT KSDL audit wing is headed by internal 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 YEAR AT A GLANCE (Rs. In Lakhs) Particulars| 2010-11| 2009-10| Change (%)| Turnover | 18,106. 82| 17,890. 60| 1. 21| Value Added| 8,671. 63| 8,295. 00| 4. 54| Employee (No)| 828| 853| (2. 93)| Profit Before Tax| 927. 46| 1,348. 86| (31. 24)| Profit After Tax| 539. 9| 931. 12| (42. 07)| Dividend| 159. 11| 159. 11| -| Corporate Dividend Tax| 26. 42| 27. 04| (2. 29)| Retained Earnings| 380. 28| 772. 01| (50. 74)| Total Assets| 7,932. 48| 8,252. 99| (3. 88)| Net Worth| 7,097. 42| 6,617. 00| 7. 26| Total Borrowings| 835. 07| 1,635. 99| (48. 96)| Debt: Equity Per Share (in Rupees)| 0. 26| 0. 26| -| Net Worth| 2,230. 4| 2,079. 37| 7. 26| Earnings| 169. 50| 292. 60| (42. 07)| Table4. 9: Expenditure of the Year Turnover for the Last Five Years Year| Sales Turnover| 2006-07| 11,958. 03| 2007-08| 14,552. 85| 2008-09| 16,939. 19| 2009-10| 17,890. 60| 2010-11| 18,106. 82|

    Table 4. 10: Turn over for 5years Fig 4. 6: Turn over for 5 years The above table and chart shows the sales turnover for five years of the Karnataka Soaps and Detergents Limited. Here it is the increasing the sales from last 5 years. It is better improvement in the quantity of production of the soaps and detergents. In the year 2006-07 sales are 11958. 03. In the next year that is 2007-08 sales has increased to 14,552. 85. In the year 2008-09 the sales has increased at 16,939. 19 and in 2009-10 the sales has increased to17, 890. 60. In the last year that is in 2010-11 the sales has increased to 18,106. 2 From the above the table and graph we can come to the sales are increasing from year to year. The year 2006-07 to 2008-09 has increased the sales rapidly and in the year 2009-10, 2010-11 has increased what was the previous year in the 2003-04 was increasing. The company position is very good Profit Details for the last five years Year| Profit Before Tax| Profit After Tax| 2006-07| 433. 57| 358. 56| 2007-08| 1,179. 35| 1,203. 86| 2008-09| 1,170. 85| 1,168. 14| 2009-10| 1,348. 86| 931. 12| 2010-11| 927. 46| 539. 39| Table 4. 11: Profit before and after tax for last 5 years. Fig 4. Comparison of PBT and PAT By analyzing the above profit and loss account we can come to conclusion that company was profit earned compare to year by year increasing. In 2010 the profit much increased against preceding year and compare to 2010 and 2011 the profit increase 4, 80, 41,547 4. 4 HUMAN RESOURCE DEPARTMENT ORGANISATION STRUCTURE OF HUMAN RESOURCE DEPARTMENT Managing Director Asst. Gen. Mgr (HRD) MGR (HRD) CANTEEN Asst. Mgr TIME OFFICE First Aid OFFICE Asst. Mgr JR. OFFICER VMO JR. OFFICER SENIOR ASSTS JR. OFFICERS SR. ASSTTTT SR. ASSTS ATTENDER SR. ASSTS HELPER ATTENDER Cooks

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