You are on page 1of 30

PROFILE OF THE COMPANY

INTRODUCTION TO SOAP INDUSTRY:Soap is one of the commodities which have become an indispensable part of the life Of modern fantasy world. Since it is non durable consumer goods, there is a large market for it. The Whole soap industry is experiencing changes due to innumerable reasons such as government Relations environment, environment, toxicological allergy problems increase in cost of raw material etc.

Following Swadeshi movement in 1905, few factories were set up and they were: 1. Mysore Government Soap Factory at Bangalore.

2. Godrej Soaps at Bombay.

The changing technology and even existing desire by the individuals and the Organization to produce a better product at a 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 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 2lakh tones p.a.

THE INDIAN SOAP INDUSTRY SCENARIO:The Indian soap industry has been dominated by handful of companies such as 1. Hindustan Levers Limited. 2. Tata Oil Mills ( Taken over by HLL ) 3. Godrej Soaps Private Limited. 4. Recent entrants include Colgate Palmolive Ltd., Proctor & Gamble Ltd., Nirma Soap Works., Wipro Ltd.

The Indian Soaps industry continued to flourish very well until 1967 68, but began to stagnate. Soon it started to recover and experienced a short upswing in 1974. This increase in demand can be attributed to:-

1. Growth of population. 2. Income and consumption increase. 3. Increase in urbanization. 4. Growth in degree of personal hygience.

Soap manufacturers are classified as, Organized and unorganized sector. KSDL is under organized Sector.

PRESENT STATUS:MARKET SCENARIO India is the ideal market for cleaning products. Hindustan liver, which towers over the cleaning business, sells in all over the cleaning business but the tiniest of Indian settlement. The 7.4lakhs tons per annum soap market in India in crawling along at 4% The hope lies in raising Rupee worth, the potential for which is high because the Indian soap market is pseudo in nature & it is amazingly complex being segmented not only on the basis of price benefits, but even a range of emotions within that outlining framework.

PROBLEMS OF SOAPS & DETERGENTS INDUSTRY:Industry faces some problems due to increase in the cost of raw materials. The major ingredients like soda ash, Linear alkyl benzene and Sodium Tripoli phosphate poses number of serious

problems in terms of availability. The demand and supply gap of vegetables oil is 1.5 to 2 lakhs tons and is met through imports.

HISTORY OF THE SOAP:Soap manufacturing was started in North America. Some American companies with well known names were started 200 years ago. During middle age soap was made at various places in Italy, France, England & other

countries. France became famous & many small factories were established there.

In India the first soap industry was established by North West soap company in1897 at Meerat following the swadeshi movement. From 1905 onwards few more factories were setup. They are,

 Mysore soap factory at Bangalore  Godrej soap at Bombay  Bengal chemicals  Tata oil mills  1930 lever brothers company 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 worlds richest sandalwood resource is from one isolated stretch of forests land in South India that is Karnataka.

The origin of sandalwood and its oil in Karnataka, which is used in making of Mysore sandal soaps is well known as Fragrant Ambassador of India & Sandalwood oil is 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 Several 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.

Todays famous Mysore sandal soaps credit goes to late Sir 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 line aspects of soap manufacturing.

The Maharaja of Mysore & Divan Sir. M. Visveshwarya 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 100tons P.A. In November 1918 the Mysore sandal soap was put into the market after sincere effort and experiments were undertaken to evolve a soap perfume blend using sandalwood oil as the main base to manufacture toilet soap. The factory shifted its operation to Rajajinagar industrial area, Bangalore in July 1957, where the present plant is located. The plant occupies an area of 39 acres (covering Soaps, Detergents and Fatty Acid divisions), on the Bangalore - Pune Highway, easily accessible by transport services and communication. Another sandalwood oil division was established during the year 1944 at

Shimoga, which stopped its operations in the year 2000 for want of Natural Sandalwood.

This factory started at a moderate scale in year 1916.

The first

product was washing soap in addition to the toilet soap in the year 1918. The toilet soap of the company was made up of sandal wood oil.

In 1950 Government decided to expand the factory in two stages. The first stage of expansion was done to increase the output to 700 tons per year and was completed in the year 1952 in the old premises.

The next stage of expansion was implemented in 1954 to meet growing demand for Mysore sandal soap and for this purpose Government of India sanctioned license to manufacture 1500 tons of Soaps and 75 tons of glycerine per year. The expansion project worth of Rs.21 lakhs includes the shifting of the factory to a newly laid industrial suburban of Bangalore.

The factory started functioning in this new premise [i.e., present one] from 1st July 1957. From this year onwards till date the factory had never looked back, it has achieved growth and development in production scales and profits.

The industry has 2 more divisions one at Shimoga and another at Mysore where sandal wood oil is extracted. The Mysore division started

functioning from 1917 and only during 1984 manufacturing of perfumed and

premiere quality Agarbathies at was started.

Right from the first log of

sandalwood that rolled into the boiler room in 1916, the company has been single minded pursuit of excellence. engineering The project took shape with the

skills and expertise of top-level team under the leadership of Sir. M. Visvesvaraya, Prof.Watson and Dr. Sudbrough. Like this soap factory was started as a small unit and now it has grown up to a giant size.

RENAMING OF 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. KS&DL has been built up with rich tradition for the quality of its products. Mysore Sandal Soap is the No: 1 anywhere in the world. The Karnataka state is the original home of the Sandal oil, which uses Original perfume sandalwood in the manufacturing of Mysore Sandal Soaps.

OBJECTIVES OF KS & DL: To serve the national economy.  To attain self reliance.  To promote and uphold its image as symbol of traditional products.  To promote purity and quality products and thus enhance age old - charm of Sandalwood oil.  To build upon the reputation of Mysore Sandal soap based on pure sandal oil.

 To maintain the brand loyalty of its customer.  To supply the products mentioned above at most reasonable and competitive rate.

VISION STATEMENT:-

"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 COMPETITOR IN THE FMCG MARKET IN INDIA AND ALSO TO SPREAD ITS FRAGRANCE IN THE FMCG GLOBAL MARKET".

MISSION STATEMENT:Karnataka Soaps & Detergents Limited shall strive to achieve:-

y y

Rs.235.00 crores sales turnover during the year 2010-11. Minimum 10% of savings of cost in various activities during the year 2010-11.

COMPETITORS OF KS&DL PRODUCTS AND SERVICES:KS&DL is facing cut-throat competition in national and international market. Some of its main competitors are: M/S. Hindustan Uni Lever Ltd.,  M/S. Godrej Soaps Private Ltd.,  M/S. Proctor & Gamble.,  M/S. Wipro.  M/S. Nirma Soaps Private Ltd.,  M/S. Jyothi Laboratories. 2.6 COMPETITORS INFORMATION AND THEIR MARKET SHARE

IN SOAP INDUSTRIES

NO. 1. 2. 3. 4. 5. 7

PARTICULARS HLL [Hindustan Lever Ltd.] KS&DL Procter & Gamble Godrej soaps Wipro Others

PERCENTAGES 64% 11% 10% 4% 4.6% 6.4%

KS&DL HAS THE FOLLOWING DEPARTMENTS:1. Finance & Accounts, Auditing Department.(Finance) 2. Human Resource Department. (HRD). 3. Production & Maintenance Department.( P & M ) 4. Marketing Department. ( MKTG ) 5. Material & Stores Department (MTLS & Strs). 6. Research & Development (R & D). 7. Foreign Trade (FTD). 8. Quality Control Department. 9. Welfare Department.

1. FINANCE, ACCOUNTS, AUDITING DEPARTMENTS 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.

It has abundant of function which can be enumerated as follows: Effective funds management which is inverted in beneficial 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. projects.

AUDIT DEPARTMENT: KSDL audit wing is headed by interval auditor. Auditing is vital for the company as it facilitates verifying of all the books of a/c by trial balance, it also comply with requirements for central excise & income tax purposes. After the Auditors monitor everything they give report which helpful to the company is

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.

2. HUMAN RESOURCE DEVELOPMENT DEPARTMENT IMPORTANCE OF HRD DEPARTMENT: 1. Management of human resources. 2. Co-operation. 3. Assisting the management in H R matters. 4. Development of work force. 5. Work together to achieve organizational goals and 6. Profit and growth.

Luther Gulick highlighted POSDCORB which stands for planning organizing, staffing, Directing, Coordinating, Reporting & Budgeting is the part of personnel management.

KEY FUNTIONS OF THE HRD:1. Recruitment 2. Implementing. 3. Training 4. Cordial relationship of Industry 5. Disciplinary matters 6. Performance appraisal 7. Employee safety etc

Cordial relation with Trade unions: KSDL is trying its level best to ensure healthy & cordial relation with trade unions in all matters regarding industrial disputes & employee satisfaction. HRD is act as a mother as it ensures people are treated perfectly well & widening the scope of the employees.

3. PRODUCTION & MAINTANANCE DEPARTMENT KSDL has 3 main production plants: i. Fatty Acid Plant ii. Soap Plant iii. Detergent Plant

i.Fatty Acid Plant: The basic raw materials, Oil & fats undergo the splitting & refining process including hydrogenation at the fatty acid plant. It is also obtained & used for soap making. The plant has a capacity to process 10,000mt of oils 1 fat.

ii.Soap Plant: The soap plant is one of the largest production plants in the country with an installed capacity of 26,000 tones per annum. KSDLs soap plant has its uniqueness that it has the capacity to process as

many as ten different varieties of soap simultaneously. The sophisticated plant from Italy has a wholly integrated straight line facility that links up process sequence for higher productivity. It is a stream line flow through right from raw material preparation to wrapping stage the line collation with the built in facility for continuous fat bleaching & saponification. The finishing touches are given by high tech universal wrapping machine. This high speed auto wrapper has the capability to handle soaps of virtually all size & shape.

iii.Detergent Plant:

It has installed capacity of 10,000 tones per annum. To produce spray dried, powder & a syntax plant for detergent cakes & bars. It produces industrial detergent which is used in the formulation of wet table pesticide powders for crop protection.

4. MARKETING DEPARTMENT The company main products are soaps & detergents which are sold in different parts of India. There are depots at various places of the country which are controlled by seven branches. The role of each branch is to ensure that sales activities coming under their control. ORG : Operational Research Group report main source of marketing research private agency which study the competitors consumer demand, market etc that generates the report Branch Depots.

1. Bangalore Hubli, Raichur 2. Chennai, Salem, Madurai, Cochin 3. Hyderabad, Vijayawada, Ananchapur 4. Mumbai Bhiwandi, Ahmedabad, Pune 5. Calcutta Cuttack, Patna, Gauhati 6. Delhi, Jaipur, Jullundur

5. MATERIAL & STORES DEPARTMENT 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.

It has been divided into 5 sections:

Oil & fats section Perfumery & aromatically section Packing materials section Chemical section Miscellaneous & Engineering stores section

STORES DEPARTMENT: KS&DL has well-managed stores department for each of the three divisions viz, soaps, detergent & fatty acid division in the factory, there are separate miscellaneous stores department for raw material, finished goods and tools.

STORAGE DEPARTMENT: In KSDL there are about 6 stores namely: 1. Packing Materials 2. Engineering Goods 3. Perfumery Stores 4. Oil & Fats Stores 5. Detergent finished goods stores 6. Fuel & Serviceable stores

These stores play a great role in maintaining of required stock. It also facilitates maintenance of suitable store organization structure. It monitors the procedures of the receipt. Materials are issued on the basis of FIFO.

6. RESEARCH & DEVELOPMENT

KSDL its full fledged quality control & R&D single mindedly pursue quality enhancement. Both departments are headed by highly qualified professionals, committed to developing products that keep place with customers changing needs & perceptive. When doing Research they have a target which they get benefits & it enables the company to forecast the future.

Quality plays a very important role in KSDL majority of the products are consumer goods. So it must satisfy the consumer expectation.

KSDL as 2QC division i. Raw material QC division ii. Production QC division

7. WELFARE DEPARTMENT KSDL welfare department can be classified into 3 sections namely, 1. Statutory 2. voluntary

1) Statutory : KSDL welfare association is based on employees contributions, interest carved. Canteen facility First aid Provident Fund

2) Voluntary benefit : workers education class conducted by the central board

Inspection of fittings Dust nuisance Toxic gas nuisance

TRADEMARKS OF KS&DL:The SHARABHA The carving on the cover is the sharabha, the trademark of KS&DL.

The sharabha is a mythological creation from the puranas which has a body of a lion and head of elephant, which embodies the combined virtues of wisdom and strength. It is adopted as an official emblem of KS&DL to symbolize the philosophy of the company.

The sharabha thus symbolized a power that removes imperfections and impurities. The maharaja of Mysore as his official emblem adopted it. And soon took its pride of place as the symbol of the Government Soap Factory of quality that reflects a standard of excellence of Karnataka Soaps and Detergent Limited.

SLOGAN:NATURAL PRODUCTS WITH EXOTIC FRAGRANCES

KS & DL has a long tradition of maintaining the highest quality standard, right from the selection of raw materials to processing and packing of the end product. The reasons why its products are much in demand globally and are exported regularly to

UAE, Beharen, Saudi-Arabia, Kuwait, Qatar, South America. The entire toilet soaps of KS & DL are made from raw materials of vegetable origin and are totally free from animal fats.

POLICY OF KS & DL: Seek purchase of goods and services from environment responsible suppliers.  Communicate its environment policy and best practices to all its employees implications.  Set targets and monitor progress through internal and external audits.  Strive to design and develop products, which have friendly environmental impact during manufacturing.  Reuse and recycle materials wherever possible and minimize energy consumption and waste.

BIRDS EYE VIEW OF KS&DL:1918 - Government Soap factory started by Maharaja of Mysore & the Mysore Sandal Soap was Introduced into the market for the first time. 1950 - The factory output rose to find terms. 1. Renovating the whole premises. 2. Installing a new boiler soap building plant & drying chamber. 1954 - Received License from government to manufacture 1500 tons of soap &

75 tons of glycerin per year.

1957 - Factory shifted its operations to Rajajinagar industrial area. 1974 - Mysore sales international limited was appointed as the sole

selling agent, for marketing its products. 1975 Rs.4 crore synthetic Detergent plant was installed based on

Italian technology by Ballestra SPA. 1980 - On 1st October 1980 the Government Soap Factory was converted into a public sector enterprise and renamed as Karnataka Soaps & Detergents Limited, 1981 - a. Production capacity was increased to 6000 tons. b. Rs.5 crore Fatty acid plant was installed with technical collaboration from Europe. 1984 Manufacturing of premium quality of Agarbathies at Mysore

division. 1985 Production capacity was raised to 26,000 M.tons Per Annum. A large

variety of toilet soaps at attractive shapes, colors and fragrances introduced to meet the varieties & tastes of consumers. 1992 - The Board for Industrial & Financial Reconstruction (BIFR), New Delhi in December For rehabilitation 1996 - The BIFR approved the Rehabilitation scheme in September.

1999 - ISO 14001 Certificate pertaining to Environmental Management System. 2000 - In May, the BIFR, New Delhi Declared the Company to be out of the purview. 2003 - The entire carried forward loss of Rs.98 crores wiped out and in

May BIFR, declared the company to be out of its Purview. The company is making profit continuously; it is only State Public Sector unit that has come out of BIFR.

2004 - The company launched Herbal Care Soap. And The ISO 9002 was upgraded to ISO-9001-2004, Quality Systems. 2008-Company has introduced Hand wash liquids under the trade name of Herbal Hand wash and Rose Hand wash liquids. Company has also introduced liquid Detergent under the trade name of KLEENOL liquid with different variants for Floor wash, Dish wash and Automobile wash. 2009-Company has established In-House state of the Art manufacturing facilities for manufacture and filling of Mysore Sandal Talcum powder and Mysore Sandal Baby powder. Company has reintroduced the Talcum powder variants with new outlook of containers. 2010-The ISO certification was upgraded to ISO 9001:2008. PRESENT STATUS OF THE COMPANY:The company is mainly dependent on solution 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 and Northern markets penetration of KSDL products is relatively poor, which depends on the companys distribution structure, stockiest and field personnel strength. With increased trust on distribution, the company does not foresee any problems to achieve the projected sales through the redistribution package. Further, the policy of Indian Government also sees the public sector enterprises enter the industry in a large way there by making the products available to the consumers at reasonable prices.

Being located in the centre of southern part of Indian the Government Soap Factory claims preferential treatment for expansion programme in view of availability of exotic natural Sandalwood oil. AN ISO-9002 COMPANY:KS & DL with a tradition of excellence of over eight decades is committed to customer delight, through total quality management and continuous improvement through the involvement of all employees. KS & DL has ISO 9002 certificate. To improve the quality management system and to facilitate TQM in the process of soap and detergent, the management took decision to obtain ISO-9002 by end of March 1999.Accordingly action plan was drawn and a committee was set up for the purpose during October 1998 with a statement. The company gives initial training includes conducting employees awareness programme, document quality manual and quality system procurement. In this direction company obtained the guidance from consultancies, Bangalore and Bureau of Indian Standards, Bangalore. Accordingly, company standards registered for ISO 9002 by the end of March to the Bureau of Indian Standards. Obtained the certificate by the end of March 1999 itself. This is to project in the national and international market and also to improve quality of products offered to the consumers with the assurance of quality in the message. The company got itself upgraded to ISO-9001-2004,quality systems in the year 2004-05.

ISO-14001:The company is located in the heart of the Bangalore city. The management of the company took a decision to get the ISO-14001 and become model to other public sector for the techniques used and also to other Government units to spread the message of maintenance of environment. ISO-14001 and ISO-9001 will facilitate to improve the corporate brands in the global market and it will help the company to improve the profits, year after year on long term basis. The environment management system adopted in the company through this motive as follows.  Conservation of energy  Conservation of surrounding  Conservation of resources Equipped with latest technology and backed by full-fledged quality control and R&D support, KS&DL is marching confidentially ahead in the new millennium. The company is

developing new products to meet the changing preferences of its customers to meet the global standards of FDA and EURO guidelines. KS&DL AT GLANCE:Incorporated Name Address Karnataka Soaps and Detergents Limited. Karnataka Soaps and detergent

Limited BangalorePune Highway Post Box

No.5531, Rajajinagar, Bangalore-560055 PH: 080-3377691/ 3370469/ 23371103 to 0622376922 to Email:Mysoresandals@vsnl.com Year of Establishment Constitution 1918

Wholly owned by Government of

Karnataka Undertaking Management Government of Karnataka

nominated / appoints Board of Directors. Chairman & MD Renamed 1980

Trademark

The trademark is SHARABHA.

It is the Body of lion with the head of an elephant means blending the intelligence of lion strength of an elephant. Production range Toilet Soaps, bar soaps, with

Detergent cakes, Powders, Agarbathies, Cosmetics, Baby products, Sandalwood Oil. Process Know how The facility is a pioneer in the

Manufactures of various soaps

and technology Imported from Italy. Capacity of the Unit Licensed capacity is 26,000

metric tons of Soaps & 10,000 M. Tones of Deterge per annum. Plants At Bangalore Soap Plant Detergent Plant Fatty Acid Plant At Mysore Sandal wood Oil Agarbathies At Shimoga Duty paid Godown

----------------------

THE BIRTH OF A LEGEND :The early year of the 20th century witnessed the birth of a magical formula, created from the finest and purest sandalwood oil, better known as liquid gold, distilled exclusively at our divisions in karnataka Mysore. A fragrant gift to the world from the first Government Soap Factory of India.

Nurtured by the Maharaja of Mysore, enriched with all the goodness of natural sandal wood oil, this unique soap captured hearts and markets at home, as well as right across the globe creating a fragrant legacy for the state of Karnataka. Karnataka soaps and Detergent limited ( KS&DL)is the true inheritor of this golden legacy of India. Continuing the tradition of excellence for over eight decades, using only the best Grade sandal wood oil in its product range, KS&DL today in one of the largest producers of sandal wood oil and sandal wood soaps in the world.

PRODUCT PROFILE:KS&DL is the true inheritor of golden legacy of India. Continuing the tradition of excellence for over eight decades, using only the best East Indian grade Sandalwood oil & Sandalwood soaps in the world. The products produced at KS&DL are the Soaps ,Detergents, Agarbathies and Sandalwood oil.

PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL SOAP NAME OF THE PRODUCT Mysore Sandal Classic Soap Mysore Sandal Gold Soap Mysore Sandal Baby Soap Mysore Special Sandal Soap UNITS OF GRAMS

75 75, 125 75

75

Mysore Rose Soap

100

Mysore Sandal Herbal Care 100, 125 Soap

Mysore Jasmine Soap

100

Wave Soap Mysore lavender Soap Mysore Sandal bath tablet

100 150 150 150

Mysore Sandal classic bath tablet

150 Mysore Jasmine bath tablet Mysore Special Sandal tablet Mysore Sandal rose tablet 150

150

DETERGENTS KS&DL also manufactures high quality detergents applying the latest spray drying technology with well balanced formulation of active matters & other builders; they provide the ultimate washing powder

NAME OF THE PRODUCT Mysore detergent powder Mysore detergent powder Mysore detergent Cake Mysore detergent cake

UNITS OF GRAMS 1000 500 125 250

AGARBATHIS NAME OF THE PRODUCT Mysore Sandal Premium Mysore Sandal Regular

Mysore Rose Nagachampa Suprabhatha Mysore Jasmine Parijata Sir M.V.100 Bodhisattva Venkateshwara Durga Ayyappa Alif Laila Meditation

TALCUM POWDERS NAME OF THE PRODUCT Mysore Sandal Talc Mysore Sandal Baby Talc UNITS OF GRAMS 20, 50, 100, 300 100, 200, 400

NEW PRODUCT LAUNCHED

1.Wave Turmeric Soap. 2. Wave Hand Wash Liquid Soap. 3. Herbal Care Liquid Soap. 4. Agarbathies Mysore Sandal 3 in 1.

SWOT ANALYSIS OF KS & DL:STRENGTHS  Only soap in India that contains pure sandal and almond oil.  The factory is located in the heart of the city & has all infrastructure facilities. They require quick movement of raw materials & finished products. Due to its Proximity, habitation movement of men and material are easy.  The company has brand loyalty of consumers and has 90% of sandal soap market, foreign technology to suit indigenous condition due to government participation, little financial crisis with backup from government.  An ISO 9002 certified company has its own brand image.  An ISO 14001 company, which commits to reserve the natural environment in the production of its quality products to the satisfaction of its customers.  Diversified product range keeps the company stable.  Two sandalwood oil factories in Shimoga and Mysore, which produce 75% of worlds sandalwood oil.

WEAKNESS:  Slow growth rate 6.2 growths over 40 years against the product of 80%.  Power intensive: dependent on power may miscarriage here results in under utilization of capacity.  High labor oriented cause due to excessive labor force.  Defective marketing strategy lacks effective advertising and publicity.

 Needs updating with times in terms of plant and machinery.  The large proportion of the target area is upper middle class and upper class people, it has very few offer to lower middle class.

OPPORTUNITIES  Existence of vast market and huge demand  Traditional benefits that sandal is good for skin.  Government support large production capacity.  Good export market can tap foreign market vigorously.  At present it has Good raw material sources to enhance production.

THREATS  Competition from other global leaders like HLL.  Government interference may reduce growth potential.  As the company depends on forests for its main raw materials makes the company to find chemical alternative to sandalwood.  Other sandal soaps in the market.  Entry of new multinationals in Soap business.