Karnataka Soap And Detergents Ltd (Mysore sandal) 2018

" Business Familiarization Report on
Karnataka Soaps & Detergents Limited "
By,
Name : Reg no :
Sthavan chandra Pal 17MB0552
Samrudh Jain D 17MB0546
Pranay R Hosamane 17MB0533
Meghana R Hosmane 17MB0524
Nishanth S Y 17MB0531
III Semester MBA
Guide
Mrs.N P Asha
Asst, Professor
Department of Management Studies
Haranahalli Ramaswamy Institute of Higher Education
Project report submitted to the University of Mysore, Mysore in partial fulfilment of the
requirement for the award of the degree in Master of Business Administration
HARANAHALLI RAMASWAMY INSTITITE OF HIGHER EDUCATION, Hassan

An Organization Study
At
KARNATAKA SOAPS & DETERGENTS LIMITED
Submitted to
HARANAHALLI RAMASWAMY
INSTITUTE OF HIGHER EDUCATION
DEPARTMENT OF MANAGEMENT STUDIES
In the partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
Smt.N.P.ASHA L.D.LAXMAN AGM (HRD)
ASSISTANTPROFESSOR N.B.HARISH KUMAR(DGM, P&M)
HRIHE Smt.AMBIKA RAM RAO
HASSAN
Department of Management Studies
HARNAHALLI RAMASWANY INSTITUTE OF
HIGHER EDUCATION SALAGAME ROAD
HASSAN 573-201
(MANAGER MARKETING)

ACKNOWLEDGEMENT
An Internship is an opportunity in a management student’s career where he can acquire
invaluable knowledge as to how an organization actually functions and the process of the work. The
satisfaction that accompanies the successful completion of any task would be incomplete without
mentioning the people who made it possible, whose able consistent guidance and encouragement
crowned our efforts with success.
Firstly, I would like to express my sincere thanks to our respected Director, Dr Srinath M S
HARNAHALLI RAMASWANY INSTITUTE OF HIGHER EDUCATION for giving me an
opportunity to undertake this internship. And for motivating me to gain the learning experience
through this project.
I am grateful to our project guide N.P. ASHA, Assistant Professor, Department of Management
Studies, Harnahalli Ramaswany Institute of Higher Education Hassan, for her constant support and
inspiration throughout the project and for their encouragement, suggestions and guidance to complete
this project successfully.
I express our sincere and hearty thanks to Mr. L D Laxman, N.B. HARISH KUMAR (DGM,
P&M), & Smt.AMBIKA RAM RAO of Karnataka Soaps & Detergents Limited for their suggestion
and encouragement given to pursue this project successfully.
I thank all the staff of MBA Department and the staff of Karnataka Soaps & Detergents Limited,
Bengaluru who helped me to solve the problems that I have faced during the development of this
organization study report.
Last but not the least, I am grateful and thankful to my beloved Parents and all our friends for their
moral support and suggestions and encouragements.
From: Sthavan Chandra Pal
USN: 17MB0552
SNo: KSDL/HRD/59(C)2018-19/75
Date:

ACKNOWLEDGEMENT
From: Pranay R Hosamane
USN: 17MB0533
SNo: KSDL/HRD/59(C)2018-19/73
Date :

ACKNOWLEDGEMENT
From: Sambrudh Jain D
USN: 17MB0546
SNo: KSDL/HRD/59(C)2018-19/74
Date :

ACKNOWLEDGEMENT
From: Nishanth S Y
USN: 17MB0531
SNo: KSDL/HRD/59(C)2018-19/76
Date :

ACKNOWLEDGEMENT
An Internship is an opportunity in a management student’s career where she can acquire
I express our sincere and hearty thanks to Mr. L D Laxman, N.B. HARISH KUMAR (DGM, P&M),
& Smt.AMBIKA RAM RAO of Karnataka Soaps & Detergents Limited for their suggestion and
encouragement given to pursue this project successfully.
From: Meghana R Hosamane
USN: 17MB0524
SNo: KSDL/HRD/59(C)2018-19/77
Date :

EXECUTIVE SUMMARY
In this organization study an attempt is made to analyze various dimensions of a Karnataka Soaps
& Detergents Limited. It includes areas such as organization structure, reporting relationship,
organization standing in the industry, financial analysis etc. The researcher gained experience in
every department at Karnataka Soaps & Detergents Limited and learned about the company.
Mysore Sandal Soap is a brand of soap manufactured by the Karnataka Soaps and Detergents
Limited (KSDL), a company owned by the Government of Karnataka in India. This soap has been
manufactured since 1916. Karnataka Soaps & Detergents Limited manufactures and markets toilet
soaps, detergents, cosmetics, Agarbathies and sandalwood products. The Company was
incorporated in 1980 and is based in Bangalore, Karnataka.
The main objective of this study is to find out aspects related to organization structure
,staffing, decision making etc related to Karnataka Soaps & detergents Limited.
Through the organization study we have gained good knowledge of the functioning of the
organization and its performance in a complex market environment.

TABLE OF CONTENTS
CHAPTER PARTICULARS PAGE
NO.
1 Industry Profile 1-12
2 Internal and external environment analysis 13-14
3 MCKINSEY’S 7S frame work 15-32
4 Financial performance and ratio analysis 33-39
5 Learning experience 40
6 Findings & Recommendations 41-42
7 Conclusion 43
Bibliography 44

Karnataka Soap & Detergents ltd
Haranahalli Ramaswamy Institute Of Higher Education 1 | P a g e
Chapter – 1
Industry Profile
In this modern world soap is one of the most essential commodities which is a part of our
life. Since it is non-durable it has large market in 21st
century the whole soap industry is
experiencing continuous change in their products due to cost of raw materials, costumer
preference, environment
The changing technology and ever existing design 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 new products. The soap industry in India faces a cut throat
competition with multinational companies dominate the market. They are also facing
severe threat from dynamic and enterprising new entrance especially during 1991-92.
2000 years back in 17A.D soaps and detergent are invented. 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.
In the year 1662 A.D the first patent for making was done in London. In the year 1884 A.D
the soap consumption all around the world was nearly about 2 lakhs tons per year .
1.1.1 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. Since 1905, the
following come into force:
1. Mysore soap factory at Bangalore,
2. Godrej soap at Bombay,
3. Bengal chemicals
4. Tata oil mills 1930 lever brothers co.

Haranahalli Ramaswamy Institute of Higher Education 2 | P a g e

1.1.3 The Indian Soap Industry Scenario:
The Indian soap industry has long been dominated by hand full of companies such as:
1. Hindustan levers limited.
2. Tata oil mills (taken over by HLL)
3. Godrej soaps private limited.
The Indian soap industry continued to flourish very well until 1967-68, but began to
stagnate & soon it started to recover & experienced a short upswing in 1974. This increase
in demand can be attributed due to;
1. Growth of population.
2. Income & consumption increase.
3. Increase in urbanization.
4. Growth in degree of personal hygiene.
Soap manufacture has 2 classifications, organized and unorganized sectors.
KSDL comes under organized sector.
1.1.4 Introduction About The Organization
Mysore Sandal Soap is a brand of Soap manufactured by the Karnataka Soaps and
Detergents Limited (KSDL), a company owned by the Government of Karnataka in India.
The erstwhile Karnataka Government Sandalwood Oil Factory was established in the year
1961 at Mysore to utilize the abundant availability of Natural Sandalwood in the region of
Mysore, Shimoga, Chamarajanagar and Chikkamagaluru Districts. The State had the
good fortune of having at the helm of affairs Sir Visvesvaraya as Diwan, whose vision,
foresight and enthusiasm witnessed the establishment of Sandalwood Oil distillery at
Mysore during the year 1916. The then Director of Industries & Commerce Sir Alfred
Chatterton had recommended to the Karnataka Government on 09th November 1914 to
start distillation of Sandalwood Oil. Based on this, a thorough Research study was made in
Indian Institute of Science and found that, Sandalwood Oil of high quality could be
manufactured locally and it gave the inspiration for the birth of the Sandalwood Oil
Factory. Feasibility study on the economic viability of the Sandalwood Oil extraction unit
was conducted and found that, it is economically viable considering the huge demand for
the high quality Sandalwood Oil for the export markets. Government has issued an order
for establishment of Sandalwood Oil factory at Sankey tank Bangalore, on 30th October
1915 and the production operations started on 10th May 1916. The factory was shifted to
Mysore and operation started on 09th August 1916.


During 1916, Maharaj and Diwan of Mysore, have identified Sri
S.G. Sastry, a bright young and promising student of Science and deputed him to U.K. for
higher training in Soap manufacturing technology, using the natural Sandalwood Oil. With
the return of Sri S.G. Sastry from London, the era of Mysore Sandal Soap began. Sri S.G.
Sastry has developed the sandal perfume which was considered as a landmark in the field of
Soap perfuming in those days. The first MYSORE SANDAL SOAP was produced by
utilizing the Natural Sandalwood Oil as the main ingredient of perfume and was introduced
in the market during November 1918. The continuous efforts of improving the quality and
finish of the soap established the oval shape for the soap. The finish, quality and packing of
Mysore Sandal Soap had considerably improved during the course of time and the brand has
been established as “MYSORE SANDAL SOAP”. The trade mark designed was also
quite novel, in that it has the mythological animal called SHARABHA. It is Elephant
headed Lion, symbolizing the magnificent blending of the majesty of Lion with the strength
of an Elephant. The design of the carton and the inner packing of the Soap with glassine
paper were unique and registered in the minds of people.
In the year 1932-1933, new buildings were constructed for Toilet Soap Plant near Cubbon
Park and the production capacities were increased to 750MTs/annum to meet the
increasing demand of Mysore Sandal Soaps.
During the Second World War, the accumulation of Sandalwood in the Malnad Koties of
Shimoga, Tarikere and Chikkamagaluru was posing a problem for storing and also for
transportation of wood to Mysore factory. Considering the availability of cheap fuel and
abundance of river water at Shimoga, it was decided to establish a Sandalwood Oil
extraction factory at Shimoga during the year 1944.
In the year 1954, the then Chief Minister of Mysore, Sri K. Hanumanthaiah, directed to
shift the Soap manufacturing operations from Cubbon Park area to Rajajinagar, Industrial
Suburb Area, as the construction of Vidhana Soudha was started.
Sri M. Visvesvaraya has laid the foundation stone for construction of new buildings at
Rajajinagar, in October 1954. The factory shifted to operations to Rajajinagar in the year
1957, transferring all the old equipment’s. New additional Toilet Soap machinery was
imported from Germany during the year 1961. The production and sales have increased to
about 1,000MTs during the year 1961. During the year 1965, the factory gave an
undertaking to the Government of India, agreeing to export its products and started
exporting products to various countries


1.1.5 Trademark Of KS & DL
THE “SHARABHA”: The carving on the cover is “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 an 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 as a power that removes imperfections and impurities. The
Maharaja of Mysore adopted it as his official emblem. And soon took it side of place as
the symbol of the Government Soap Factory of quality that reflects a standard of
excellence of Karnataka Soaps & Detergents Limited.


1.1.6 Slogan
“NATURAL PRODUCTS WITH EXOTIC FRAGRANCES”
Karnataka Soaps & Detergents Limited has 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, Bahrain, Saudi Arabia, Kuwait, South America, Qatar. The entire Toilet
Soaps of KS & DL are made from raw materials of vegetable origin and are totally free
from animal fats.
1.1.7 Competitor’s analysis & market share
KSDL has 11 % of its market share in the Indian market. Where other companies like HUL
have 70% of market share and it is ruling the soap industries in India. Others companies
like Godrej have its 4% of market share and P&G have its 10 % of market share. Other
companies like Pathanjali, Fema, Hamam, have 5% of market share.
1.1.8 Government Regulations
The following are the regulations which are made by the government for KSDL.
They are: -
1. The Companies Act, 1956.
2. Memorandum and Articles of Association
3. Standing Orders
4. Conduct & Disciplinary Action Rules
H.U.L , 70%
KSDL 11%
P&G , 10%
GODREJ,4%
OTHERS,5%
COMPETITORS ANALYSIS & MARKET SHARE
HUL KSDL P&G GODREJ OTHERS


5. Medical Attendance Rules
6. Professional Tax Act.
7. Income Tax Act.
8. VAT
9. Provident Fund Act.
10. Employees State Insurance Act, 1948.
11. Workmen Compensation Act, 1923.
12. Industrial Employment (Standing Orders) Act, 1946.
13. Payment of Wags Act, 1936.
14. Minimum Wages Act, 1948.
15. National Festival and Holidays Act. 1963.
16. Maternity Benefit Act, 1961.
17. Payment of Gratuity Act, 1972.
18. Factories Act, 1948.
19. Industrial Dispute Act, 1947.
20. Central Sales Tax Act.
21. Karnataka Tax on Entry of Goods Act.
22. Payment of Bonus Act, 1965
23. Karnataka Transparency in Public Procurement Act, 1999.
24. Trade Union Act, 1926.
1.1.9 Nature of industry
In this modern world soap is one of the most essential commodities which is a part of our
life. Since it is non-durable it has large market in 21st
century the whole soap industry is
experiencing continuous change in their products due to cost of raw materials, costumer
preference, environment. The changing technology and ever existing design 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.
Sandal wood is the main and most essential source for the industry. So the
company is promoting to grow sandal wood for farmers because company cannot depend
only on government property .


1.2 Company Profile
1.2.1 Objectives, Vision, Mission& Statement of the Organisation
1.2.1.1 Objectives
1. To serve the National economy.
2. To attain self-reliance.
3. To promote purity & quality products
4. To maintain the Brand loyalty of its customers.
5. To build upon the reputation of Mysore sandal soap based on pure sandal oil
1.2.1.2 Vision
Karnataka Soaps & Detergents Limited has a clear vision for all round development of
the Company. This is reflected in the form of a well conceptualized and cogent blue print
called VISION 2013. The VISION 2013 sets the goal and suggests the strategies and plans
to achieve this goals. The Vision of the KS & DL is embodied in the following statements:
“KARNATAKA SOAPS & DETERGENTS LIMITED will leverage latest soap
manufacturing technology and information technology by imbibing professional
management techniques to improve its functional activities, transparency, business and to
transform itself into a modern, professional organization in the FMCG market in India and
also to spread its fragrance in the FMCG global market”.
1.2.1.3 Mission
1. To serve the national economy.
2. To attain self- reliance.
3. To promote purity and quality products.
4. To maintain the brand and loyalty of its customers.
5. To build upon the reputation of Mysore Sandal Soap based on pure sandal oil.


1.2.1.4 Quality policy
Communicate its environment policy and best practices to all employees for implication.
Set targets and monitor progress through internal and external audits.
Strive to design and develop products, which have friendly environmental impact during
manufacturing, also reuse and recycle materials
AN ISO-9001 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
October1998 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 the 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 System in the year 2004-2005
1.2.1.5 Achievements & Awards
1. Government of Karnataka Dept. of Industries and commerce State Export
Promotion Advisory
2. Board. “EXPORT AWARD” 1974-75
3. Detergent Plant M/s Chemical Bombay have given 1st price for the year 1980-81
4. Geographical Indication GI-2005
5. ISO 9001-2000 in the year 1999
6. ISO 14001-2004 in the year 2000


1.2.1.6 Product profile:
SL NO NAME OF THE PRODUCT WEIGHT OF
THE SOAP
PREMIUM SOAPS
01 Mysore Sandal Soap 75gms,
125gms02 Mysore Sandal Soap - Sandal Bath
Tablet(Single)
150gms
03 Mysore Sandal Gold 125gms
04 Mysore Sandal Classic Soap(Transparent) 75gms
05 Mysore Sandal Baby 75gms
06 Mysore Sandal Bath Tablet-SBT(Trio
pack)
3 x 150gms
07 Gift pack - (Sandal, Jasmine, Rose) 3 in 1 3 x 150gms
08 Gift pack - 6 in 1 (Sandal, Jasmine, Rose,
Sandal, Classic & Lavender)
6 x 150gms
09 Mysore Sandal Gold Sixer 6 x 125gms
10 Millennium Soap 150gms
POPULAR SOAPS
11 Mysore Rose Soap 100gms &
125gms
12 Mysore Carbolic Soap 150gms &
65gms
13 Herbal Care Soap 100gms
14 Wave Soap – Turmeric, Lemon 75gms
100gmsGUEST TABLETS
15 Rose Guest Tablets 17gms
16 Sandal Guest Tablets 17gms
17 Herbal Care Guest Tablets 17gms
DETERGENTS
18 Point Excel Detergent Powder 1 Kg
19 Mysore Detergent Cake 125gms,150g
ms&250gms
20 Liquid Detergents – KLEENOL 2Ltr, 5Ltr, 35Ltr &
200Ltr


KS&DL is also exporting different varieties of Soaps to different countries i.e. Middle
East, European Countries, Asian Countries, American Countries, Australia, African
Countries.
COSMETICS
21 Mysore Sandal Talcum Powder 50gms,100gms,
300gms
22 Mysore Sandal Baby Powder 50gms
23 Wave Cologne Powder 100gms
24 Hand Wash Liquids – Herbal & Rose 200ml &
500ml25 Liquid Soap Bulk
26 Mysore Sandal’s Room Freshener 300ml
27 Mysore Sandal’s Coconut Oil 50ml, 100ml,
200ml
AGARBATHIES No. of Sticks
28 Mysore Sandal Premium – 9” 20 Sticks
29 Mysore Sandal Regular – 9” 20 Sticks
30 Rose Regular - 9” 20 Sticks
31 Jasmine Regular – 9” 20 Sticks
32 Jasmine Rolls 35gms Pack
33 Jasmine Rolls 70gms Pack
34 Sir M.V. 100 100gms
35 Nagachampa 20 & 40
Sticks36 Meditation Sandal (Export) 20 Sticks
SANDALWOOD Weight of the
Product
37 Sandalwood Oil 5gms & 9gms
Bottles
38 Sandalwood Billets 100gms,
300gms &
1Kg39 Sandal Spent Wood Powder Bulk


KS&DL also markets Agarbathies, Talcum Powders, Baby Powder, Hand wash,
Sandalwood & Sandalwood Oil. KS & DL is accredited with ISO 9001-2008 & ISO
14001:2004 certifications for its Quality Management Systems and Environmental
Management Systems. KS & DL is the inheritor of golden legacy of India. It is continuing
the tradition of excellence for over, using only the best East Indian grade Sandalwood Oil
& Sandalwood Soaps in the world. The products of KS & DL are divided into four
categories
I) Toilet soaps
a) Millennium Soaps – 150gms
This super premium soap is made for all seasons, all kind of users for wellness,
nourishment, cooling with the enthralling aroma of pure natural Sandalwood Oil.
b) Millennium Sandal Soap – 75gms
With the oldest known perfumery material Sandalwood as its main ingredient, the
Sandal Soaps of KS&DL have a definite niche in the soap market. The oil of Sandalwood
recommended in ancient Ayurvedic texts for skin care, has excellent antiseptic properties.
It soothes prickly heat and also other skin rashes. The Sandal Soap of KS&DL is probably
the only soap in the world for nourishing and softening the skin. Mysore Sandal Soaps are
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 Sandalwood Oil.


c) Mysore Sandal Classic (Translucent)
The soap of its kind with the careful blending of glycerine and pure sandalwood oil
to moisturize and nourish the skin and fragrance that lingers all day long.
d) Mysore Sandal Gold – 125gms
The glamorous entrant to the Sandal family, the result of intensives research by the
company to bring out the best soap in the country with pure sandalwood oil, Almond oil
and moisturizer. Mysore Sandal Gold soap is available in single pack (1 x 125gms) and also
as a gift pack known as MYSORE SANDAL GOLD SIXER (6 x 125gms).


e) 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 change of nappy rashes.
g) Mysore Rose Soap
The dew drop freshness of just plucked roses captured in soap form to give a
feeling of a shower with rose petals. This soap is available in 17gms pack for catering to
hotels.


h) Mysore Sandals Herbal Care Soap (100gms)
Mysore Sandals Herbal Care Soap contains 19 aroma therapy essential oils like-
Basil, Cedar wood, Citronella, Clove, Coleus, Eucalypts, Geranium, Guaicwood, Lavender,
Lemongrass, Menthacitrata, Nutmeg, Orange, Patchouli, Pine and Rosemary

i) Wave Turmeric Soap (100gms)
The soap is enriched with sandal and almond oil. The soap is formulated with f-3
factor, Freshness- Turmeric- Refreshes and protects your skin by keeping it clean and
germs free. Fragrance- Sandal- Leaves a long lasting scent that keeps you fresh alum day
long. Fairness- Almond Oil- Revitalizes your skin and keeps it glowing.


j) Mysore Carbolic Soap (150gms)
Mysore Carbolic Soap is formulated with Antiseptic and disinfectants
ingredients to give present and fresh feeling all day long.


I) Detergents
a) Point Advance Liquid
The liquid is specially formulated with active dirt-busting detergent, stain
removing agent, fibre softening agents. The Point Advance Liquid detergent work
effectively in top loading, semi-automatic/automatic washing machine as it is formulated
for low foam. The powder can also be used for bucket wash. The mild fragrance of the
liquid keeps the clothes fragrant all the day.
b) Mysore Detergent Cake
Mysore Detergent Cake is formulated with specific 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 125gms, 150gms and 250gms under the
brand name MDC.


C) Point Excel Detergent Powder
The powder is specially formulated with the active dirt-busting detergents, stain
removing agents, fibber softening agent. The new Point Excel Detergent powder works
effectively in top loading, semiautomatic/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.
d) Liquid Detergent – KLEENOL
KLEENOL liquid detergent is formulated for multipurpose 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
500ml, 1ltrs, 35ltrs and 200ltrs.


III) Cosmetics
a) Mysore Sandal Talcum powder
Extension of Sandal goodness to body talc. The only talcum powder containing
pure natural Sandalwood Oil, rich in cooling and healing quality. In convenient and pretty
packs, keeps one fresh and fragrant all day long. Mysore Sandal Talc is available in 50gms,
100gms and 300gms.
b) Mysore Sandal Coconut Oil
Mysore Sandal’s Coconut Oil is a natural oil conditioner, which is perfect for
hair care and for smooth hair texture. The internationally accepted anti-oxidant
preservation ensure that the coconut oil remains fresh till the last drop.


c) Mysore Sandal Baby powder
Mysore Sandal Baby powder nourishes and protects baby’s skin. Created using the
world’s purest Sandalwood Oil and Almond Oil. It keeps the baby dry and fragrant thus
lessening the chance of nappy rashes. Mysore Sandal Baby talc is available in 100gms and
50gms packs.
IV) Agarbathies
a) Mysore Sandal Premium
Agarbathies are an essential part of all auspicious occasions, spreading a divine
fragrance that calms the mind and lifts the spirits. KS&DL Agarbathies portfolio includes
the inimitable collection of typical fragrances. Every Agarbathies is hand rolled to
perfection. Using a traditionally blended paste made from the best ingredients to provide a
soothing fragrance throughout the day. The pack of Premium is in rectangular carton. 9
sticks are packed in rectangular carton and
8 sticks packed in a hexagonal carton.


b) Rose Regular
Rose Regular-9 Agarbathies is hand rolled using traditionally blended paste from
the best ingredients. The sticks are perfumed with the fragrance closest to Jasmine flower.
Product is available in variants-Jasmine Rolls-8 sticks-30gms, Jasmine Rolls-8 sticks-
60gms.
c) Sir M V-100
Sir M V 100 Agarbathies is hand rolled using a traditionally blended paste made
from the best ingredients. The sticks are perfumed to give mild, spicy odour.


d) Jasmine Rolls
Meditation sticks are hand rolled using a traditionally blended paste made from
the best ingredients and perfumed to give mild, fancy, herbious, tulasi fragrance.
e) 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.


1.2.1.7 Area Of Operation
KSDL have its sales Global, National and Regional
A) Global market
Australia Italy Sri Lanka
Berlin Kenya USA
Canada Malaysia Japan
Czechoslovakia Saudi
Arabia
UK
France Singapore Taiwan
Germany Africa Holland
These are some countries where KSDL has its market
b) National market
KSDL has its sales in all over the country but the main market for its product is southern
part of India to promote its product in north India the company has made some new
products like body wash, Baby oil, Massage oil, in the fragrance with sandal.
c) Regional market
KSDL has good sales in local market because of its 100 years’ history. KSDL has its
regional outlets in 3 districts i.e. - Bangalore
-Mysore
-Shimoga
1.2.1.8 Promoters information: -
KSDL has signed an agreement with cricketer MAHENDRA SINGH DHONI has
it brand ambassador for the promotion of Mysore sandal soap.
According to former Managing Director, I.R. Perumal the agreement with
Mr. Dhoni is aimed at improving sales for the soap in the north India.
1.2.1.9 Background And Inception Of The Company
Karnataka soaps & Detergents Limited, a successor to the government
soap factory, which is one of the premier factories among the Indian soap industries. After
World War 1, there was a slump in the sandal wood export to the west. It dropped a
blanket of gloom over business & trading in India. The Maharaja of Mysore turned this
threat in to an opportunity, by sowing the budding seeds of KS & DL on the out skirts of
Koti forest, near Bangalore in 1918. The project took shape with the engineering skill and


expertise of a top-level team with the inspection of the Diwan of Mysore Late Sir. M.
Visvesvaraya & with the service of scientists late Sir S.G. Shastry, Professor Watson & Dr.
Sub rough. The entire credit goes to Sir. S.G.Shastry, who improved & made the process
perfect of manufacturing of sandalwood oil & world famous Mysore Sandal Soap. The
factory was started a very small unit near K.R.Circle, Bangalore with the capacity of 100
tons p.a in 1918. Then, the factory shifted its operations to Rajajinagar industrial area,
Bangalore in July 1957. The plant occupies an area of 42 acres (covering soap, detergent &
fatty acid divisions) on the Bangalore-Pune Highway easily accessible by transport
services and communication. In November 1918, the Mysore Sandal Soap was put in to the
market after sincere effort & experiments were undertaken to evolve a soap perfume blend
using sandalwood oil as the main base to manufacture toilet soap
1.2.1.10 Future Growth And Prospector
Sandal wood is a unique item which is not available easily. The main ingredient to
manufacture sandal soaps is sandal wood. KSDL is the only company which manufactures
pure sandal soaps in India. There is huge market for sandal soaps in international market
because the sandal wood is not available everywhere. This will make company to run in a
good condition for few more years and also the cost of soaps or not much higher. So it can
reach all type of people. The main advantage of company is their loyal customers the old
generation who addicted for it. By these reasons the company’s future will good as we saw


Chapter-2
Internal and External Environment Analysis
2.1 Swot analysis
2.1.1 Strengths
a) The factory located in the heart of the city and has all the raw materials. It has
quick movements of all the raw materials and finished goods. Due to its proximity,
habitation movement of men and material is easy.
b) It is a government company and there has the support and backup of the
government.
c) The KSDL uses 100% natural sandalwood and sandalwood products.
d) A very good dealership ensures that the products reach every nook and corner.
e) The product Mysore Sandal Soap faces a very little competition.
f) An ISO 9002 certified company has its own brand name.
g) They have a backup electricity power for the entire production unit, which ensures
there is no stoppage of production at the time of no power supply.
h) Hygiene is their priority. In addition to sanitation natural ventilation has been
provided in every department of the factory.
i) World largest production of sandalwood oil.
j) Diversified product range helps the company to maintain stable.
2.1.2 Weaknesses:
1. The technology used for production is old and needs up gradation.
2. Research & Development is not effective in reducing the cost of production.
3. The large proportion of the target area is upper middle class and upper class people,
It has very few offers to lower middle class.
4. Defective marketing strategy lacks effective advertising and publicity.
5. Excessive Labor force has increased the operating cost.
6. Less promotional activities.
7. Absence of Television network
8. Steady but slow growth of the Mysore Sandal Soap


2.3 Opportunities:
1. There is a possibility to increase the market of soaps and detergents as these products
are demanded now and then.
2. Good foreign market and exceptional demand all over the world.
3. The availability of raw material adds to enhance production.
4. Usage of Sandalwood oil, used for medicinal purpose of much skin diseases has
increased the demand of this product.
5. They can diversify their product to shampoo, sanitizer etc. and expand their market
share.
6. The company has a great opportunity to expand its market share by increasing export.
7. Good marketing strategies can push the sales to a new level.
8. Use of new/modern technology can help reduce costs and improve quality.
2.4 Threats:
1. Stiff competition from other global leader like HUL, Godrej, Nirma, Wipro, P&G...etc.
2. There is need for renovation of plant and machinery.
3. Government interference may reduce growth potential of KS & DL.
4. As company depends on forests for its main sources of raw materials which make the
company to find chemical alternatives to sandalwood.
5. To protect the financial interest of the company


2.2 TWOS Analysis
2.2.1 Strength & Opportunity - Maxi Maxi
1. As the factory is located in heart of the city it I easy for the habitation movement of
men and martial by this the there Is a possibility to increase the market of soap.
2. KSDL uses 100% natural sandal wood oil to produce its products which healthy for
human skin and non-harmful, by this the demand for the product is high
3. As it has excellence in very good dealership which helps in managing marketing
operation.
4. As it has State government support it leads for diversifying of business and expansion
of plant.
5. Worldwide network leads for net profit.
6. As it has continued profit it leads for diversification of business.
7. High quality products lead to expansion of plant.
2.2.2 Strength & Threat – Maxi Mini
1. As it has State Government support and backup which leads to interference
2. KSDL is the largest producers of the sandal oil which is dependent on forest for its
main source of raw material which make the company to find chemical alternatives.
3. Though the company certified by ISO 9002, it has competition from other global
leaders like HUL, GODREJ, NIRMA etc.
4. Professional man power can reduce political Interference.
5. Increased competition both National and International companies may be overcome, by
this company as they have Implemented Kaizen practices.
2.2.3 Weakness & Opportunity – Mini Maxi
1. Outdated technology leads to innovative technology development.
2. Manual over dependent on product line leads to better quality production and innovative
technology development.
3. Predicted increase on net profit will help increase in labour cost.
4. Private sector undertaking helps for KSDL worker’s management.
5. Limited capacity of plants will increase the net profit.


2.2.4 Weakness & Threat – Mini Mini
1. By eradicating the weakness of outdated technology may leads to face MNC’s
2. Government policies can avoid restriction export territories.
3. Increase in percentage of order from abroad leads to face competitors.
4. By abiding the government policies, it may leads for globalization of company.
5. Reducing the price of raw materials, they can face the compotators in the market and also
can maintain inventory.


CHAPTER -3
MCKINSEY’S 7S Frame Work
The 7s framework of Mc-Kinsey is a management model that describes 7 factors to
organize a company in a holistic and in an effective way. The first 3 elements strategy,
structure and system are considered the “Hardware” of success. The next four-style, skills,
staff, and shared values are called the “Software”. The two persons who developed this
model are Robert Waterman and Tom Peters were consultants at McKinsey and Co at that
time. The published their 7-S Model in their article “Structure Is Not Organization” (1980)
and in their books “The Art of Japanese Management” (1981).
The framework rest on the proposition that effective organizational change is best
understood in terms of the complex relationship between strategy, structure, systems, style,
staff, shared values or super ordinate goals. The proposition of the 7-S model suggests that
there are multiple factors which influence an organization’s ability to change
3.1 Structure
The term structure in 7s system refers to the association structure of the organization.
Organization structure refers to relatively more durable organizational arrangements and
relationship. The plan of the hierarchical structure is basic assignment to the administration
of an association, it is the skeleton of the entire association which demonstrates the degree
of the exercises in which the organization is particular and the courses in which
authoritative undertakings are incorporated and composed It demonstrates the formal
relationship among different positions and exercises, 'courses of action about who reports
to whom', the chain of command, delegation of authority, various departments etc. is all the
part of organizational structure


3.2 Organization Structure and Chart
A) Basis of Depart mentation
KS&DL is a manufacturing concern of moderately large size. It has functional wise depart
mentation. It facilitates effective utilization of manpower and resources and it is a simple,
economic and reasonable organization pattern.
B) Functional Department Of KS&DL
1. Marketing Department
2. Human Resource Department
3. Production Department
4. Finance / Accounts Department
5. Research and Development Department
6. Stores Department
7. Welfare Department
8. Maintenance Department
9. Material Department


3.1.2 Individual Departments:
A) Human Resource Department:
Objectives Of Hr Department
1. Maintenance of good employee relationship in the organization.
2. Providing a comfortable working environment to our employees.
3. Foster a climate of team building and high productivity.
4. To encourage employee’s participation.
5. To promote a better quality of life
6. Cost reduction and Cost Control
7. To work for community development of surrounding area.
Key Functions Of The HRD:
1. Recruitment and Selection
2. Training and Development
3. Promotion and Transfer
4. Wages and salary administration
5. Performance Appraisal
6. Industrial Relations
7. Disciplinary Action and
8. Welfare Measures
Human Resource In KSDL
Deputy General Manager (HRD) is over all in charge of Human Resources Development of
the Company with the assistance of DGM, Manager, Officers and Staff for Recruitment
and Promotion of employees in line with the C&R Rules Personnel
Administration
1. Employees Discipline,
2. Industrial Relations
3. Labour Welfare Training & Development


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. Conveyance Allowance.
8. Education Advance.
9. Festival Advance.
10. TA / DA Rules.
11. HBA / Interest Subsidy.
12. Delegation of Powers.
13. Probationer’s Rules.
14. Annual Increment.
15. Incentive for adopting small family norms
Benefits Provided By KSDL
Monetary benefits are basic wages, allowances, employee’s contribution to PF,
employee’s state insurance, pension penalty etc.
Food benefits like housing, food canteen, education to children, medical facility, holiday
pay, recreation etc.
Performance Appraisal System
Confidential reports are prepared by the heads of the department for systematic judgment of
the subordinate to access the duties and responsibilities carried on by them. It helps to
measure the standard of performance and overall work efficiency of the employees
B) Production Department:
Production is one of the most important functions of manufacturing company. It is that
part of an organization, which is related with the transformation of a range of inputs into
the required having the required quality level.


Production is defined as “the step by step conversion of one form of material into another
form through chemical or mechanical process to create or enhance the usage of the product
to the user.” Thus, production is an expansion process. At each stage of processing, there
will be value addition.
Objectives of Production Department
The Production Manager is in charge of ensuring that raw materials are given and made into
completed merchandise viably.
Work is completed easily, and must regulate strategies for making work more effective and
more agreeable
The amount and nature of items falling off a production line will be nearly checked. A
well-organized production function can offer competitive advantage to a firm in the
following areas:
1. Higher quality
2. More inventory turns
3. Shorter new product lead time
4. Greater flexibility
5. Shorter manufacturing lead time
6. Better customer satisfaction
7. Reduced wastage
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.
Number of Production Lines:
1. Fatty Acid Plant
2. Soap Plant
3. Detergent Plant
4. Talcum Powder Plant
1. Fatty Acid Plant
The essential raw materials, Oil and fats experience the part and refining process including
hydrogenation at the fatty acid plant. It is additionally acquired and utilized for soap
making. The plant has an ability to process 10,000mt of oils 1 fat.


2. Soap Plant
The soap plant is one of the biggest generation plants in the nation mind an introduced
limit of 26,000 tons for every annum. KSDL's soap plant has its uniqueness been in a
position to process upwards of ten distinct assortments of soap at the same time. The
complex plant from Italy has an entirely incorporated straight line office that connections
up process arrangement for higher profitability
It is a stream line move through appropriate from crude material planning to end or the line
grouping with the implicit office for persistent fat bleaching and saponification. The
completing touches are given or cutting edge widespread wrapping machine. This fast auto
wrapper has the ability to deal with soap of for all intents and purposes and size or shape.
3. Detergent Plant
It has introduced limit of 10,000 tons for every annum. To deliver spray dried powder and
a sentence structure plant for detergent cakes and bars. It produces mechanical detergent
which is utilized as a part of the plan of wet table pesticide powders for crop protection.
4.Talcum Powder Plant
It has introduced limit of 30,000 tons for every annum. In this plant there also other
packing units like
1. Hand wash liquids
2. Body wash liquids
3. Dish wash liquids
4. Coconut oil
Types of Production
1) Job Production: It is characterized by manufacturing of one or few quantity of product
designed and produced as per the specification of customers within prefixed time and cost.
Its features are:
1. High variety of products and low volume.
2. Use general purpose machines and facilities.
3. Highly skilled operators who can take up each job as challenge.
4. Large inventories of materials, tools and parts.
2) Batch Production: It is a form of manufacturing in which the job passes through the
departments in lots or batches and each lot may have different routing. It is characterized by
the manufacturing of limited number of products produced at regular intervals and stocked
awaiting sales. Its features are:


1. When there are shorter production runs.
2. When plant and machinery are flexible.
3. When manufacturing time cost are lower.
4. Promotes functional specialization.
3) Mass Production: It is a form of manufacturing on a large scale to provide a
continuous supply. The manufacturing procedure is broken into isolated operations. The
product finished at one operation is naturally passed on to the following till it is finished.
The machines are arranged in a line or product layout. The handling of machinery is
completely automatic. Its features are:
1. Standardization of product.
2. Dedicated special purpose machines having higher production capacities and output
rates.
3. Large volume of products.
4. Production planning and control is easy.
Production In KS&DL
General Manager (Production) is over all responsible for Production and Maintenance
exercises of the administration Company of KSDL with the help of DGM's, AGMS,
Managers, Officers and Group labourers. Generation of different items is in co-
appointment with Marketing office, Materials, Stores, to accomplish focused on creation
and up keep Plant and Machinery. Creation chief in KSDL is in charge of the accompanying
exercises:
1. Organization creation exercises with appropriate allotment of work constrain in
shifts.
2. Effective usage of labour, Materials and Machinery.
3. Effective arranging and support of different types of gear and apparatuses.
4. Monitoring of reports and information relating to creation according to the
prerequisite of ISO-14001-2004 and ISO-9001-2008.
5. Implementation of the Departmental Policies


WORK FLOW MODEL
C) Marketing Department
The term marketing has been derived from the word market. Market is generally
understood as a place or geographical area where buyers and sellers meet and enter in to
transaction involving transfer of ownership of goods, services and securities.
The organization principle items are cleansers and cleansers which are sold in various parts
of India. There are depots at different spots of the nation which are controlled by six
branches. The part of each branch is to guarantee that business exercises going under their
control.
The head of the marketing department assisted by DGM and AGM and Six branch heads
observing the accompanying exercises
Domestic deals operation all over India
Export related exercises, this includes


1. Analysing the market openings by understanding the shopper needs and
concentrate the market that are occurring in the focused condition.
2. Planning the advertising exercises.
3. Implementing the market designs and setting control component to guarantee
fruitful achievement of organization objectives.
Channels Of Distribution In KSDL
KSDL after manufacturing their products, that is, soaps and detergents is sent to various
distribution points through agents. The stockiest sent to various retailers hence it reaches to
various consumers. As the company manufactures its product, it ensures that there is
proper description of their product and its distinct features so that the consumer can
understand the components of the product properly.
Functions Of Marketing Department:
1. Marketing Mix: It is the strategy embraced by the manufactures to get accomplishment
in the field of promoting.
2. Product Policy: It incorporates both the turns of advancement and change delivered and
existing items. This all completely done by KSDL both marketing and R and D
department.
3. Distribution Policy: The manufactured product of KSDL is provider to the production
line terminals. There are different depots in different states and put away there.
4. Sales and Promotion: The downside is poor publicizing and sales promotion.


5. Packing: Uses distinctive materials for various items, card board boxes
manufactured spreads.
D) Export Department
Export is an important part of factory where they are able to earn an addition income.
The term export means shipping the goods and services out of the port of a country. The
seller of such goods and services is referred to as an "exporter" who is based in the
country of export whereas the overseas based buyer is referred to as an "importer". In
International Trade, "exports" refers to selling goods and services produced in the home
country to other markets. KSDL export their product to different parts of the world. They
are:
Australia Italy Sri Lanka
Berlin Kenya USA
Canada Malaysia Japan
Czechoslovakia Saudi Arabia UK
France Singapore Taiwan
Germany Africa Holland
The KSDL has got the patent right from England to extract lavender oil to produce
lavender natural soap. These soaps are produced and exported to England only. We can get
Mysore Sandal Lavender soap only if we buy the gift pack set. It is not sold individually
F) Finance Department
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.
1. Decision making regarding fixing of cash account.
2. Obtaining trade credit.
3. Profit Maximization.
4. Wealth Maximization.
5. Preparation of cash budgets.
6. Systematic approach to working capital management.
G) Audit Department:
KS & DL Audit wing is headed by interval auditor. Auditor is vital for the company
as it facilitates verifying of all the books of account by trial balance; it is also
complying with requirements for central excise and income tax purpose. After the auditor's
monitor everything they give report which is helpful to the company


H) Safety and Environment Department Of KSDL:
The Environment is the encompassing comprises of living and non-living being. Safety
and watchfulness are the main need in any firm. In its nonappearance employee turnover
would increment drastically.
Assistant General Manager (E&S) is over all responsible for Environment and Safety in the
organization with the help of Staff and Group of workers the division has a staff with
advisory capacity. The line Management, i.e. Production, Maintenance and etc. will
actualize the safety suggestions.
Other Activities of Safety Departments are: -
1. Control and prevention of accidents and answering to Managing Director and
Statutory
2. Authorities
3. Conducting periodical safety committee suggestions.
4. Safety Promotional exercises.
5. Coordinating with H.R. Division with respect to Safety preparing.
6. Coordinate with Welfare division in regards to restorative examination of workers,
First
7. Aid Training.
8. To control the Departmental Policies.
9. Effluent Treatment Plant Operation, Maintenance and Maintain regarded
water as endorsed by KSPCB.
ISO 4001 Environmental Policies Of KSDL
1. Committed to preserve the natural environment in the production of its quality
products to the satisfaction of the customer.
2. Will comply with the Statutory and regulatory requirements pertaining to
environment, stipulated by both stare and central authorities.
3. Would invite and implement action to reduce all impacts that are likely to
reduce all impacts that are likely to be a source of concern to the environment.
4. Strive and set an example for the protection and promotion of an eco-friendly
environment. Is committed to prevent and minimize the risk to the environment
and conserve natural resources by minimizing wastage.


I) Welfare Department:
Employee’s welfare has been taken care off. For this welfare department has
been created. It had been divided into three divisions. They are:
1) Statutory
It is based on providing employees additional facilities. It includes:
1. Canteen facilities.
2. First aid.
3. Provident fund.
2) Voluntary
It involves various duties to control employees. They are:
1. Workers education class.
2. Inspection of fittings.
3) Mutual
It includes addition facilities provided to employees. They are:
1. Employees get 2 pairs of uniform and a pair of shoes for every year.
2. Culture recreation, leave facilities.
3. Employee cooperative society which gives loans for concessional rate.
4. Employee housing building society.
J) Research and Development Department:
KS & DL is full-fledged quality control & R&D single mended pursue quality
enhancement. Both departments are headed by highly qualified professionals,
committed to developing products that keep place customers changing needs &
perceptive. When doing research, they have target which they get benefits & it enables
the company to forecast the future.
Objectives Of R&D In KSDL
1. The product process and development.
2. The product process improvement.
3. Cost reduction.
4. Alternative raw materials
5. Slow moving and non-moving inventory reduction.
6. Technical advice to the management.
7. To maintain the customer satisfaction at optimum level.


8. To retain the perfume content throughout the day.
9. To maintain standard weight, size and finishing.
10. To improve the existing production.
11. To adopt the new methods of product development.
12. To provide technical support to the marketing department.
13. To make improvement in the process of production.
14. To administer and maintain technical library.
K) R&D/QAD IN KSDL:
• General Manager (R&D / QAD) is over all in charge of Research & Development
and Quality Assurance Department in the Company with the assistance of AGM,
Manager, Chemists & Group workers for New Product development to meet the
emerging market, improvement, Development of alternative raw materials, cost
reduction in formulations, up gradation of quality.
• He is also responsible for the following activities of the KSDL factory.
• Organizing the R&D activities with proper allocation of work force.
• Effective utilization of man power, materials & instruments in R&D department
which includes Pilot Plant.
• To coordinate & comply with the guidelines/statutory requirements/regulations
of Drugs Control Department and other statutory agencies.
• Monitoring of data and documents as per the requirement of ISO-14001-2004 and
ISO-9001: 2008.
• Co-coordinating in the effective implementation of GROW MORE
SANDALWOOD programmers in the State of Karnataka on commercial
plantation for mutual benefit of the Growers and the industry for continuous re-
generation of Sandalwood which is in the 6verge of extinction.
• Procurement of natural Sandalwood from Legal and Ethical sources from any
part of the country.
• Product/Process development, Cost reduction of the input materials, to work on
alternate of the raw material and Technical advice to the management from time to
time
• As a part of continuous innovation and development to keep abreast of the
regulatory issues to meet the needs of the global market.


• Representing the professional bodies, Bureau of Indian Standards, Essential of
Association, Fragrance and Flavour associations etc. to the benefit of the industry
and the organization.
• To fulfil the Quality Objective of the organization providing consistent quality
products to the customers.
• Organize the Quality Assurance Department activities with proper allocation of
work force.
• Effective utilization of man power.
• Overall supervision and control of all the activities of QAD.
• Guiding the Analysts for proper sampling and analysis of all input raw
materials, in process samples and final products.
• Signing the test report and GRR prepared by analyst after due verification OF
AGM (QAD).
• Attending customer’s complaints received from the market from time to time.
• Periodical study and analysis of various competitor products for
reviewing/updating of our products/ packing specifications.
• Study of slow moving and non-moving raw materials/ packing materials &
suggesting for alternative use of these materials to reduce the inventory.
• Periodical Calibration of measuring instruments.
• Convener for SPDRC /Member Purchase Negotiation Committee.
L) Stores Department:
The inventory or stores represent those items which are either to be stocked for
sale or they need to be halt in the finished goods to be able to sale in the market. An
effective management of store department or inventory control management is a must for
the smooth and efficient running of the production cycle with least interruption.
Inventory control is a planned approach of determining what to order, when to order and
how much to order and how much to stock so that the cost associated with buying and
storing are optimal without interruption of production and sales.
Types of Stores In KSDL
There are certain stores in KSDL namely:
1. Packing materials.
2. Engineering goods.


3. Perfumery stores.
4. Oil and fats stores.
5. Detergents and finished goods stores.
6. Fuel and serviceable stores.
These stores play a great role in maintain the required level of stocks in the company. It
also facilitates maintenance of store organization structure in the company. It monitors the
procedure of receipts.
M) Maintenance Department:
Effective maintenance is the goal of the company. The areas of maintenance are: -
1. Mechanical Maintenance.
2. Electrical Maintenance.
3. Civil Maintenance.
Proper maintenance result to: -
1. Reduction of overload cost reduction
2. Greater safety of equipment & workers
3. Delivery schedule is maintained.
4. This department contribution also working progress
N) Material 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:
1. Maintaining continuity of flow of materials.
2. Effective control of inventories.
3. Co-ordination.
4. Growth of the organization.
5. Maintaining ethical organization
It has been divided into 5 sections:
1. Oil & fats section.
2. Perfumery & aromatically section
3. Packing materials section
4. Chemical section
5. Miscellaneous & Engineering stores section


O) Packaging of product in KSDL:
The Mysore Sandal Soaps Basic and Regular are packed in small cardboard box. They are
first wrapped in a cellophane cover to not to lose out the aroma of the soap. The soaps
such as Carbolic, wave soap types are directly packed in a plastic wrapper.
There is a difference in the packing of exported goods and the goods produced in the
domestic market. The products exported to UK, US needs special certification on the brand
cover to be exported. At times a special kind of testing of the product needs to be done.
There is no much complication in case of Middle East countries.
3.2.Skills:
The term “skills” incorporates those qualities, which individuals use to depict an
organization. Organization have qualities in various range yet their key qualities are
overwhelming aptitudes are few. These are produced over some undefined time frame of
the consequence of the connection of various variables playing out specific undertakings
effectively over some undefined time frame, the sort of individuals in the organization, the
top management style, structure, the administration frameworks, the external
environmental influence etc. Henceforth when organization makes a key move it ends up
noticeably important to deliberately manufacture new abilities.
Employee’s skills in an organization will be one of a kind, this might be because of their
involvement in the work environment, and the similarity may also due to impact of the
comparable culture. However, every individual as per his qualities has his own talents and
extraordinary characters. This can't be summed up expertise among them.
The employees of KS&DL have distinctive skill, which are applicable for their work. As it
is regular in big organization, controversies between departments which can be solved by
discussions and by conducting some interactive programs
3.3. Style:
Decision-making is concentrated with the head office. Authority is given to unit in-
control to take choice in everyday minor issues and other critical issues. Decision-making
relies upon the authority & responsibility gave on every individual and in this way it's
dispersed in light of assignment and position held.
In essential issues, meetings are held to seek opinions of top management & various
department manager & the decisions are taken & implemented. Decision-making is co-


ordinate and finished with wide consultations of top management of department manager’s
consultation which gives best possible gains
The organization of KS&DL consist of four levels. They are
Top Level consists of Board of Directors and Managing Director.
Second Level consists of Directors of Finance and Special Officers.
Third Level consists of Senior Managers, Deputy Managers and Officers.
Fourth Level consists of Clerks, Assistants and Attenders
3.4. Strategy:
Strategic planning is about asking questions, more than endeavouring to answer them.
Strategy formulation a scan for an alternate reference frame. It is the mission for
another business worldview. There are two sorts of standards that apply to management,
in particular the organization and the organizational or administrative ideal models
The business ideal models characterize an organization's position in the commercial
centre regarding customers, technology and product. System is a decision of course and
activity; the organization receives to accomplish its targets in a competitive
circumstance. Any statements on by and large of utilitarian procedure that the association
may wish to share are:
1. Changes in the existing products
2. Their future plans include introducing of new products.
3. The cost control practice is in solidification.
4. Introduction of practical substitutes without trading off on quality.
5. Development of new Scents, Agarbathies, Soaps, Detergents, Creams
and Shampoos.
3.5. System:
The everyday exercises and methods that staff individuals take part in to take care of
business. KS&DL has,
Management information system:
1. Accounting System
2. Costing System
3. Inventory Control System


4. Remuneration System
5. Performance Appraisal System
6. Inventory Control System
3.6 Staff:
As any employer, KS&DL follow ethical employment standards wherever it operates
with a goal in mind company guarantees.
To fulfil its entire legal obligation in terms of employment payments and benefits
practices.
Adequate and timely training for every one for the job for which they are employed.
Career advancement related to performance and experience.
As any employer, KSDL follow ethical standards whenever it operates. To fulfil the entire
term of employment practices and obligation adequate and timely training are provided to
each and every employed worker. It ensures career advancement for the employee with
work efficiency
Manpower
Groups Bangalore SOD
Mysore
Marketing
Branches
Duty paid Go
down
Shimoga
Total
Executives 74 45 08 01 128
Non-
Executives
319 28 23 07 377
Total 393 73 31 08 505
Trade union
There are two trade unions in KSDL. KSDL is trying the level best to ensure healthy and
coordinal relation in all matters regarding industrial disputes and employee satisfaction.
HRD act as a mother by ensuring that the people are treated well and widening the scope of
employee growth.


3.7 Shared values:
Values refers to the institutional principles of conduct that reinforce responsibility
regarding the vision, and guide procedure detailing and purposive activity. The core values
are formed around the conviction that undertakings exist to serve society. Regarding this
conviction, profit is a means instead of an end in itself a pay to proprietors of capital
connected to the viability of commitment to society and the fundamental fixing to
maintain such augmented societal contribution.
Subsequently organization has grasped an extended part of trusteeship that reaches
beyond the assets reflected in the balance sheet to envelop societal resources. A steady
sense of duty regarding integrity, ethical conduct, meritocracy, teamwork and abiding
concern for stakeholders are at the core of your organization's value framework.
1. Customer satisfaction
2. Committed to total quality.
3. Cost and time-consciousness.
4. Innovation and creativity.
5. Trust and team spirit.
6. Respect for individuals.
7. Integrity health and ethics.


CHAPTER – 4
Financial Performance and Ratio Analysis
Financial analysis:
Financial Analysis is the analysis of the financial statements viz. Balance Sheet, profit and
Loss Account aimed at diagnosing the profitability and financial condition of a business
concern. Users of financial statements can get better insight about financial strength and
weakness of the firm if they properly analyse the information reported in these statements.
According to Metcalf and Titard, “Financial Statement Analysis is a process of evaluating
the relationship between component parts of financial statements to obtain a better
understanding of a firm’s position and performance”
1. Current ratio:
Current Ratio = Current Assets
Current Liabilities
Year Current Assets Current
Liabilities
Ratio
2014-2015 2,04,28,53,316 71,02,06,883 2.87
2015-2016 2,62,98,23,791 77,19,33,757 3.41
2016-2017 3,19,43,98,881 88,65,76,601 3.60
A comparatively higher Current Ratio is an indication that the firm is liquid and has the
ability to pay its current obligations in time as and when they become due. It is also an
indication of safety of investment made by creditors. The Current Ratio of a firm measures
its ability to meet short run obligations.
It is inferred that the Current Ratio was up to the standard in the year 2016-2017 compared
to the last financial year 2015-2016 & 2014-2015 due to the increase in the cash and
cash equivalents


2. Quick ratio:
Quick Ratio = Liquid Assets
Current Liabilities
Year Liquid
Assets
Current
Liabilitie
s
Ratio
2014-2015 98,31,84,142 71,02,06,883 1.38
2015-2016 1,57,59,60,60
7
77,19,33,757 2.04
2016-2017 2,03,98,77,50
1
88,65,76,601 2.30
As a convention, a Quick Ratio of 1:1 is considered satisfactory. Quick Ratio in the year
2016-2017 was 2.30 as compared to the last two year 2014-2015 & 2015-2016 i.e. 1.38 &
2.04. It is inferred that the firm’s liquidity position is satisfactory in both years. A Quick
Ratio 1:1 indicates that the business can meet their current financial obligations with the
available quick assets. This means it is able to meet its current liabilities. Thus the firm tries
to increase in their short term investment activities
3. Absolute liquid ratio:
Absolute Liquid Ratio = Cash and Bank balances + Marketable Securities
Current Liabilities
Year Cash and Bank
balances+ Marketable
Securities
Current Liabilities Ratio
2014-2015 57,52,42,123 71,02,06,883 0.89
2015-2016 1,05,14,39,256 77,19,33,757 1.36
2016-2017 82,18,69,852 88,65,76,601 0.93
Absolute Liquid Ratio shows the cash position of the firm. The acceptable norm for this
ratio is 0.5:1 or 50% absolute liquid assets for current liabilities. A low Absolute Quick
Ratio indicates cash deficiency and a high Absolute Quick Ratio indicates excess idle cash.
Both the situations are not good for the firm.
In the year 2016-2017 the ratio 0.93 shows the weak cash position of the company
compared to the ratio i.e. 1.36 in last year 2015-2016. (The quick ratio of the year 2014-15
is 0.89)


4. Gross profit ratio:
Gross Profit Ratio = Gross Profit x 100
Sales
Year Gross Profit Sales Ratio
2014-2015 66,51,14,481 3,22,08,20,347 20.65
2015-2016 71,70,69,606 3,73,37,54,648 19.21
2016-2017 89,30,43,931 4,05,15,52,130 22.04
Gross Profit ratio in the year 2016-2017 i.e. 22.04 is high compared to Gross Profit Ratio i.e.
19.21 & 20.65in the last two years 2015-16 & 2014-15. The increase in the Gross Profit
Ratio is due to favourable purchasing policies.
5. Net profit ratio:
Net Profit Ratio = Net Profit x 100
Sales
Year Net Profit Sales Ratio
2014-2015 45,18,76,451 3,22,08,20,347 14.02
2015-2016 47,10,04,737 3,73,37,54,648 12.61
2016-2017 54,70,99,798 4,05,15,52,130 13.50
Net Profit ratio in the year 2016-2017 i.e. 13.50 is less compared to Net Profit Ratio
i.e.14.02 in the year 2014-2015. The firm is earning below the standard that is less than
requirement of financial position. The profit ratio in the year 2016-2017 i.e. 13.50 is higher
compared to Net Profit i.e. 12.61 in the last year 2015-2016.


6. Operating profit ratio:
Operating Profit Ratio = Operating Profit x 100
Sales
Year Operating
Profit
Sales Ratio
2014-2015 66,51,14,481 3,22,08,20,347 20.65
2015-2016 71,70,69,606 3,73,37,54,648 19.21
2016-2017 89,30,43,931 4,05,15,52,130 22.04
The Operating Profit Ratio shows the relationship between Operating Profit and Net Sales.
Operating Profit ratio in the year 2016-2017i.e. 22.04 is high compared to Operating Profit
Ratio i.e.19.21 in the last year 2015-2016.The ratio indicates the profitability of current
operations.
7. Proprietary ratio:
Proprietary Ratio = Shareholders Funds
Total Tangible Assets
Proprietary Ratio shows the financial strength of the company. It helps the creditors to find
out the proportion of shareholder’s fund in the total tangible assets. Higher ratio indicates a
secured position creditors and a lower ratio indicates greater risk to creditors. Proprietary
Ratio of 2016-17 i.e. 0.89 is less in the year 2015-2016 compared to the Proprietary Ratio
i.e. 0.90
Year Shareholders’
Funds
Total Tangible
Assets
Ratio
2014-2015 9,40,42,31,552 10,49,42,23,02
2
0.89
2015-2016 9,80,04,04,349 10,94,24,70,17
3
0.90
2016-2017 10,27,26,72,207 11,56,89,31,02
3
0.89


8. Fixed assets turnover ratio:
Fixed Assets Turnover Ratio = Sales
Net Fixed Assets
Year Sales Net Fixed Assets Ratio
2014-2015 3,17,88,05,980 7,85,47,03,587 0.40
2015-2016 3,66,75,69,547 7,88,01,64,745 0.46
2016-2017 4,05,15,52,130 8,03,63,22,785 0.50
Fixed Assets Turnover Ratio i.e. 0.46 in the year 2015-2016 is less compared to the Fixed
Assets Turnover Ratio i.e. 0.50 in the year 2016-2017. Fixed Assets Turnover Ratio
measures a company’s ability to generate Sales from Fixed Asset investments like
property, plant, equipment. As Sales are not equal to the Net Fixed Assets it shows that the
company has been less effective in using the investments in Fixed Assets
9. Working capital ratio:
Working Capital Ratio= Sales
Net Working Capital
Year Sales Net Working
Capital
Ratio
2014-2015 3,17,88,05,980 1,33,26,46,433 2.30
2015-2016 3,66,75,69,547 1,85,78,90,034 1.97
2016-2017 4,05,15,52,130 2,30,78,21,980 1.76


Working Capital Ratio i.e. 1.97 is more in the year 2015-2016 compared to the Working
Capital Ratio i.e.1.76 in the year 2016-2017. Working Capital Ratio shows inefficient use
of working capital in the firm. A high working capital ratio indicates that management is
being extremely efficient in using a firm’s short term assets and liabilities to support sales.
10. Fixed assets to shareholders fund ratio:
Fixed Assets to Shareholders Fund Ratio = Fixed Assets
Shareholders’ Funds

Year Fixed Assets Shareholders’
Funds
Ratio
2014-2015 7,85,47,03,587 9,40,42,31,552 83.52
2015-2016 7,88,01,64,745 9,80,04,04,349 80.41
2016-2017 8,03,63,22,785 10,27,26,72,207 78.23
Fixed Assets to Shareholders Fund Ratio i.e. 80.41 in the year 2015-2016 is more
compared to the Fixed Assets to Shareholders Fund Ratio i.e.78.23 in the year 2016-2017.
Fixed Assets to Shareholders Fund Ratio indicates the extent to which shareholder’s funds
are sunk into the fixed assets. It implies that Shareholders funds are more than fixed assets


Chapter-5
Learning experience
a) The overall study of the organization reveals that the company has grown
tremendously since its incorporation, now it has independent units for
manufacturing sandalwood oils, toilets soaps, washing soaps, detergents, cosmetics,
incense sticks and industrial products. The initially named government soap factory
was renamed as Karnataka Soaps & Detergents Ltd in 1st October 1980.
b) We had a great time working on the project, as it gives insights into the
working environment of an organization. The study 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. The company has an effective human
resource 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.
c) The study indicates the positive aspects that the company insist on good labour
relation and works for good harmony within the organization. More than earning
profit the company concentrates on many other aspects that it needs to survive the
competition in the market.
d) The study has also helped me to gain good amount of knowledge and has an
exposure to the industrial environment. In today’s market, study has to be
developed in order to grab market share and to become a market leader. Knowledge
of the customer needs, present buying habit, their awareness and options.
Performance towards various Fast Moving Consumer Goods (FMCG).
e) Most of the people have shifted to Mysore sandal soaps because of its quality and
good features of sandal oil, natural fragrance. Its commitment to quality weight,
technology and service are resulting in loyalty customer base. The mixing of
product, price, place and promotion must be made in such a way to attract the
potential customers. It needs to integrate its promotional activities and distribution
system in an effective manner to gain competitive advantage and increase the
different types of soap product experiment. It needs to spread more for
advertisement and use different strategy to attract customers. The organization has
an excellent communication system as the organization’s short term and long term
goals are communicated to the employees on regular basis.


Chapter 6
Findings Suggestions and Recommendations
6.1 Findings
a) It is owed by the government, as a result all changes in the policy of the government
affects the company.
b) The production is based on the old technology, which result in the wastage at the time
of production process.
c) The various products of the company such as the talcum powder, Agarbathies is
not aware by the consumer.
d) There is a mismatch between production and sales activity.
e) The recruitment in the company has been stopped since 1988 due to some circumstances
and the recruitment takes place only in some department.
f) The product is not easily available other than the district place, that is, Karnataka.
g) This is the only company that has acquired government license to extract sandalwood
trees.
h) The Millennium Mysore Sandal Soap has been proved that the fragrance of the soap last
nearly for 12hrs, that is, if we use in the morning 7am, the fragrance will last long
till7pm.
i) KSDL has started entering into bipartite agreement with the farmers for growing
sandalwood trees keeping in view the future needs.
j) “Grow more Sandalwood trees” is a new scheme, which has to eliminate poverty,
safeguard environment and generate employment.
k) Even the Employees of the company has promoted the product with their friends and
relatives.
l) KS&DL has impressed the loyal customers and the customers are delighted.
m) The Company is also supplying the quality Sandalwood sapling at Rs12 on priority to
the potential growers and providing technical assistance and market information from
time to time.
n) The company can come out with some innovative products and set a bench mark in the
industry, make the product unique, stylish


6.2 Suggestions & Recommendations
a) Government has to liberalize its policy on the company can make it best.
b) The company can utilize its capacity to the maximum by bring in more innovation
c) The company can spend both money and manpower on advertising.
d) The company tries to sell its products not only in Karnataka but other state also.
e) As much as possible company tries to utilize its products.
f) Conflict should be removed in some of the department.
g) KSDL has a wide variety of products but people are unaware of many products like
h) Agarbathies, Detergents, Baby soaps etc., as its marketing is very week.
i) Company shall 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.
j) The government has to replace unskilled workers.
k) Government has to invest on advertisement, so everyone can know about products.
l) R&D shall work effectively and the break-through in new products and can make the
company to earn more profits.
m) The company should get into Digital Market space.
n) The company should try to renovate the campus, since majority of the buildings are old.
o) Should give more importance to hygiene.
p) Can be open to recruitment of youngsters along with experienced as this increases the
chances of new innovative ideas of production along with marketing for the benefits of
the company in the long run.
q) Should get into more aggressive marketing to gain the lion’s share in the market.
r) Should make an attempt to make company records digital and save it on the cloud, this
will result in clearing up the used spaces in the company and which in turn can be used
for more productive purpose


CHAPTER 7
CONCLUSION
Karnataka Soaps and Detergents Ltd. is the premier soap factories among other Indian
Factories. The KSDL have various functional departments like Production department,
Marketing department, HR department, Finance department, Company Secretary, Research
and Development department, Materials Department, Stores department, Projects
department, Environment and Safety department and Exports Department.
The three main raw materials of the production department are fatty acids, Caustic soda and
water. The most commonly used promotional tools are Bus Shelter, Railway Display Board,
Sponsoring Events and Exhibition. The HR department handles time bound promotion.
The promotion is given once in 5 years. The finance department includes costing,
accounting and auditing. These departments are the building blocks of the company. The
company Secretary Department handles various important meetings. At present 222 board
meetings have been held. The rest of the department soothes and supports these
departments.
The KSDL is located in the heart of the city. It is a Government company started by then
Maharaja Sri Nalwadi Krisnaraja Wodeyar under the leadership of Sri M. Visvesvaraya
during 1916. The various products that the company deals with are Toilet Soap,
Agarbathies, Detergents, Sandalwood and Cosmetics. The Mysore Sandal Soap Tagline
“Gifted by nature” is the true statement as it is a product from nature with no added
preservatives and chemicals.
Karnataka Soaps and Detergents Ltd. has wide variety of products like Agarbathies,
Talcum Powder, Dhoop, Hand wash etc. The marketing strategy needs to be strong. This
would help them reach the product to the target customer


BIBLIOGRAPHY
GUIDELINES BY KS&DL:
NAME DESIGNATION DEPARTMENT
N. B. Harish Kumar AGM Production & Marketing
L. D. Laxman AGM Human Resource
Department
Smt.Ambik Ram Rao Manager Marketing
Websites:
www.mysoresandal.com.
www.wikipedia.com (https://en.m.wikipedia.org>wiki>mysore)
www.ksdl.karnataka.gov.in.
Books and Journals:
Annual Reports of KS&DL.
Company Brochure.
Trade Mark of KS&DL.

Karnataka Soap And Detergents Ltd (Mysore sandal) 2018

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