CHAPTER IV

COMPANY PROFILE

4.1 HISTORY OF KSi&DL (INCEPTION)

4.2 STAGES AND DEVELOPMENT OF KSi&DL

4.3 ORGANIZATION STRUCTURE

4.4 DUTIES AND RESPONSIBILITIES OF KEY FUNCTIONARIES:

4.5 MARKETING MIX STRATEGIES OF KS&DL

4.5.1 Product strategies of KS&DL

4.5.2 Pricing strategies Of KS&DL

4.5.3 Promotional strategies of KS&DL

4.5.4 Place/Distribution Strategies of KS&DL

4.6 ANALYSIS OF PERFORMANCE OF KS & DL

4.7 CURRENT SCENARIO OF KS&DL
Chapter 4. Company Profile

CHAPTER IV
COMPANY PROFILE

In the previous chapters Growth and Development of soap industry in world, in

India and in Kamataka and conceptual and functional framework of marketing strategies
have been discussed. The present study is concerned with evaluation of marketing
policies and strategies adopted by toilet soap manufacturers in Kamataka. For evaluating
the marketing strategies of toilet soap manufacturers in Kamataka, the researcher has
chosen KS & DL, Bangalore for the microscopic study. Therefore, it is intended to
present a profile of KS & DL, Bangalore. The chapter is to presents details of growth and
development, organization structure, marketing policies and strategies, problems and
performance of KS & DL, Bangalore.

4.1 HISTORY OF KS&DL (INCEPTION)

For centuries, India is the land of spices, ivory, precious gems, magical
charms and also the land of sandalwood. The world's richest sandalwood resources are
from one isolated stretch of forest land in south India. Kamataka is the original
name for sandalwood in India which also been called as "Gandhada Gudi". Kamataka is
the original home of the perfumed sandalwood. Its oil is mainly used for Manufacture of
soaps. Thus it is regarded as a firagrant "Ambassador of India" and the
Sandalwood is regarded as "Liquid Gold". Kamataka state produces about 70% of
total production of sandal wood oil in the world. It was this sandal wood oil
which became a reason to setup a soap factory in Kamataka.
Kamataka Soaps & Detergents Limited is a public sector undertaking (wholly
owned by Government of Kamataka) engaged in manufacture of soaps, detergents and
extraction of sandal oil. It also manufactures sterile acid, glycerin. Sandal talc and
Agarbathies. By looking back at the history of KS&DL, we find that the First World War
did a lot more than raising the dust in India. It dropped the blanket of gloom on business
and trading the sandalwood, that earlier went to Europe and then to other new
destinations. It is only by the inspiration of the Maharaja of Mysore, Late
Jayachamarajendra Wodeyar, who turned the threat into opportunity by sowing the
building seeds of KS&DL. The new sandalwood factory was started in the outskirts of
Koti forest near Bangalore. The Sandalwood Oil Division, Mysore was established during

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Chapter 4. Company Profile

the year 1916 and Sandalwood Oil Division at Shimoga was established during the year
1944.
The project took shape with the engineering skills and expertise of a high level
team comprising late Engineer Statesman and centenarian Sir.M.Visvesvaraya,
Prof.Watson and Dr.Suborao. The west bank of Tunga was chosen as the site for the
second factory. The location was just right. The start was indeed a good beginning, but the
visionary Maharaja had far reaching ideas in mind. The next project to go on steam was a
factory to make sandal soap. G.S. Shastry, a distinguished chemist, was sent to England
by Maharaja to master the finer aspects of the soap manufacture. On his return, Shastry
cast the dye for an imprint that created history "Mysore Sandal" made at the new
government soap factory. The factory, which was started as a very small unit with
capacity of 100 tonnes per anniam at K.R.circle , Bangalore, in 1918, was shifted to a
bigger unit at Rajajinagar, an industrial suburb. Bangalore in July 1957. The total area of
the factory today is about 41 acres, which has the registered office of the organisation with
more than 1000 employees. Today, the company has independent units for manufacture of
sandalwood oil, toilet soap, washing powder, detergents and industrial products.
On 1st Oct, 1980, Government of Kamataka integrated the Sandal oil factories at
Mysore and Shimoga, and Government Soap Factory at Bangalore and formed Kamataka
Soaps & Detergents Limited [KS&DL], which has been incorporated as a Company under
Company's Act 1956.

The Sharabha is a mythological creation from the Puranas. It is illustrated in an

unusual form - the body of a lion with the head of an elephant. It embodies the combined
virtues of Wisdom, Courage & Strength. It was adopted as the official emblem of KS&DL
to symbolize the philosophy of the Company. KS&DL has a long-standing tradition of
maintaining the highest quality standards right from the selection of raw materials to
processing and packaging of the end product. Its full-fledged quality control and R&D
Departments single-mindedly pursue quality enhancement and keep pace with the

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changing preference and perceptions of customers. KS&DL is the true inheritor of India's
golden sandalwood legacy. Having over 93 years of experience in this field, KS&DL
today is one of the largest producers of Sandalwood oil and Sandal soap in the world.
KS&DL's products are regularly exported to UAE, Bahrain, USA, Saudi Arabia, Kuwait,
South East Asian countries etc.
KS&DL's Bangalore-complex has production facilities for Fatty Acids, Toilet
Soaps and Detergents. The Soap plant has one of the largest production facilities in the
country with an installed capacity of 26,000 tones per armum. A unique feature of
KS&DL's Soap plant is its flexibility to process as many as ten different varieties of soaps
simultaneously. KS&DL also undertakes orders for manufacture of soaps as per the
customers' specifications on mutual understanding. A significant milestone in the
Company's history is ISO 9001 certification for Quality and ISO 14001 for eco-friendly
products.
KS&DL's product range includes Toilet soaps. Incense sticks, coming in different
and distinct fragrances like Sandal, Jasmine, Rose etc. and range includes Talcum Powder,
Detergents also. KS&DL considers quality as one of the principal strategic objective to
guarantee growth and leadership in the markets of its operation. It strives to offer superior
quality Products and services. 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 and soothes prickly heat and other skin rashes too. The
Sandal soaps of KS&DL are probably the only soap in the World with pure natural
sandalwood oil. Ingredients of Mysore Sandal Soap:- Sodium Palmate, Sodium Palm
Kemelate, Sodium hydroxide. Sodium chloride, water. Titanium dioxide, Tetra Sodium,
EDTA, Perfume and Cosmetic colours. The company now has a unique distinction, with
the Government of India awarding GEOGRAPHICAL INDICATION REGISTRY for its
Mysore Sandal Soap and Mysore Sandal Wood Oil which indicates that these products are
intellectual properties from India.
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.
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Chapter 4. Company Profile

The Kamataka state is the original home of the Sandal oil, which uses Original perfume
sandalwood in the manufacturing of Mysore Sandal Soaps. It is also known as the
"FRAGRANT AMBASSADOR OF INDIA".

4.2 STACKS AND DEVELOPMENT OF KS&DL

D 1916: The Maharaja of Mysore estabHshed India's first modem sandalwood
factory near Bangalore. S.G.Shastry, a distinguished chemist was sent to England
by Maharaja to master finer aspects of soap manufacturing.
D 1918: It was only in the year 1918, on the return of Shastry, Government Soap
Factory was started, manufacturing of Mysore Sandal Soap in a very small unit
near K.R.circle, Bangalore.
D 1950: The factory's output was increased to 500 tonnes. The government decided
to expand the factory into two stages:
a) Renovating the old premises.
b) Installing a new boiler soap building plant and drying chamber.
D 1957: Sir M.Visvesvaraya laid the foundation stone for the new factory on 24th
March, 1957 at Rajajinagar industrial suburb area in Bangalore, which was easily
accessible by road and rail transport services and communication.
D 1968i: The production touched 3,000 tonnes with a turnover of Rs.2 lakhs.
• 1974\: Detergent Plant started its function.
D 1980): Due to vast expansion, the government soap factory was converted into
public sector company by renaming as "Kamataka Soaps and Detergents Limited"
on 1st Oct, 1980.
D 1983: The Company expanded by building toilet soap plant of a capacity of
20,000 tonnes per annum, at cost total cost of Rs. 17.21 crore.
D 1984: The manufacturing of perfumes and premium Agarbathies was started at
Mysore.
D 1985: Production capacity of soaps was increased to 26,000 tonnes per annum.
D 1992: The Company was registered with BIFR in Dec, 1992. Rehabilitation
package was formulated by the company and evaluated by operating agency IDBI.
D 1994: The Company eamed a profit of Rs. 1.198 crore.
D 1998: The Company launched "Mysore Sandal Talcum Powder, Mysore Sandal
Gold, and Mysore Sandal Room Freshener. Selling agency was withdrawn from
M/s. MSIL started own marketing department.
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Chapter 4. Company Profile

a 1999: The company launched "Mysore Sandal Baby Soap" and "Mysore Sandal
Baby talc" and in the same year the company secured ISO 9002 certificate for its
excellent production department.
D 2000: The company secured ISO 14001 certificate.
D 2006-2007: Outstanding Export Performance of COSMETICS & TOILETRIES
D 2007: ICWAI National Award for EXCELLENCE IN COST MANAGEMENT.

4.3 ORGANIZATION STRUCTURE

The successful performance of any institution depends to a large extent upon its
organization structure. A sound organization structure is prerequisite for efficient
management. It provide a framework for carrying on activities of the organization for
fulfillment of its objectives. In order to have better understanding about the
organizational relationship, it is proposed here to discuss the organizational structure of
KS &DL, Bangalore. The overall organization structure and the departmental
organizational structures have been shown in the following charts. The discussion on
each structure follows the respective chart.

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Chapter 4. Company Profile

Chart 4.1: Overall Organization structure

r 1

•HRD- Human resource department.

•ADMN-Administration.
• M T L S & STRS - M a t e r i a l s a n d
stores.
•Q.AD- Q u a l i t y assurance
department.
•FTD-Foreign trade
department.
"MIS- Marketing information
system.
• * D e p a r t m e n t sho\A/ing
separately

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Chapter 4. Company Profile

Chart 4.2: Technical Division

DIRECTOR
ITECHNICAL]

GEN.MGR
|R&0/P&Mt

r DGM
IQAD & R&D|

AGM
|R&D|
I
r DGM
(P&M)

AGM
PRDN & MAINT
DGM
[SOD] MYSORE

AGM
ISOD] MYSORE
"T"

-T
MGR

AM
MGR
IP&M/E&SI

AM
nni MGR SOD
IMYSORE)

AM
MGR
(FR|
T
AM

T"
OFnCERS OFnCERS
OFTICERS OFHCERS
—[— —I— «
JUNIOR JUNIOR JUNIOR
OFnCERS OFFICERS OFFICERS

R&D- Research and

development.
P&M-Production and
Maintenance.
SOD-Sales department.
AM-Assistant Manager

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Chapter 4. Company Profile

Chart 4.3: Finance Division

GM
|FINANCE|

^EI
DGM (FINANCE)

AGM(F| AGM|INTRLAUDIT|
^

-=«^ ^ Bl^

l[ MGR (F|
? MGR |A/C'S|

T
D_

I ASSISTANT MANAGER

I
..xi^^.,.i.-r^>..
:zL
\{ ASSISTANT MANAGER

OFFICERS

~1
K OFFICERS

I JUNIOR OFFICERS
A1 JUNIOR OFFICERS
T"
D_

K SENIOR ASSISTANT

I ASSISTANTS

f A/Cs-Accounts
MGR-Manager
AM-Assistant Manager
D G M - Deputy General M a n a g e r
GM-General Manager

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Chapter 4. Company Profile

Chart 4.4: Materials & Stores Division

DGM-Deputy General Manager.

AGM-Assistant General Manager
MTLS& SIRS- Materials & Stores
AMS-Assistant Managers

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Chapter 4. Company Profile

Chart 4.5: Marketing Division

GM- General Manager.

MGRS- Managers
ASM- Assistant Sales Managers
J.Officers-Junior Officers
S.reps- Sales representatives
D.Sales- Direct Sales

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Chapter 4. Company Profile

4.4 DUTIES AND RESPONSIBILITIES OF KEY FUNCTIONARIES:

3§ Managing Director: As a Chief Executive of the Company, the Managing

Director implements the polices laid down by the Board of Directors, and looks after the
day-to-day administration.
§§ Asst. General Manager (HRD): is over all in charge of Human Resources
Department of the Company with the assistance of AGM's, Officer ,Steno & Staff for a)
Personnel Administration, b)Employees Discipline, c) Industrial Relations, d) Labour
Welfare, and e)Training & Development.
1) Organise the HRD activities with proper allocation of work force.
2) Proper handling and Control of the Administrative powers of
a) Medial Benefits to Employees (Workmen & Officers) in respect of "Accident while
on duty) as per KS&DL medical attendance Rules".
b) Grant of Special leave to employees who adopt "Small Family Norms".
c) Grant of Maternity leave to women employees under "Maternity Benefit Act &
Rules".
d) Grant of Special leave to the Sports persons participating in Sports & Cultural
activities within Kamataka.
e) Release of Honorarium to the Enquiry Officers/ Presenting Officers & Stenographers,
as per circular issued from time to time.
f) Issue of "Transfer Orders" in respect of Workmen (Unionized Cadre Employees) in
B.C. processed by the HRD with the written concurrence of concerned Heads of
Department.
g) Acceptance of Resignation in respect of all Employees in the non-executive cadres.
h) Release of conveyance allowance to the supervisory personnel and officers as per the
rules of the Company,
i) Fixation of pay as per the agreement / on appointment/promotion, with financial
concurrence,
j) Extending benefits as per the agreement/ adminisfrative circulars in respect of
unionized cadres & other staff and officers, with financial concurrence such as
HBA/HPA etc.,
3) Maintaining documents and data as per the requirement of ISO-14001 and ISO-9001
4) Implementation of the Departmental Policies

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3€ Company Secretary: is over all in charge of Company Secretary duties with the
assistance of Manager for Convening the Board/ Audit Committee Meeting any other
Meetings specified by the Board as per the Companies Act 1956.
,S§ General Manager (Marketing): Marketing Department is responsible for
Marketing of the Company products through its 6 Branches and 25 Depots all over India
and also have the responsibility of collections.
1. Powers, Duties & Responsibilities of Key Officer In Marketing:
Marketing Department is responsible for achieving a set of Target, Sales &
Collections annually. The overall target will be distributed among 6 Branches & Export
Department. Targets will be allocated on the basis of each Branch performance in the
preceding 3 years of its turnover. It is the responsibility of each Branch Head to achieve
the set of Sales & Collection target fixed.
O Allocation of Budget: Sales, Production & Expenditure budget is planned 3
months prior to the commencement of financial year. Production & Expenditure Budget is
planned based on sales budget. Normally 60 days of finished goods inventory is
maintained as per the industrial norms.
Following are the allocation of Budget:-
O Sales Budget: As per the Decision of the Board based on the Performance of the
Company for the preceding 3 years.
O Expenditure Budget: Expenditure budget will be allocated in different heads
which are as follows:- Advertisement & Publicity Budget, Sales Promotional Budget,
Primary & Secondary freight budget and C «& FA expenditure budget.
O Budget for other Miscellaneous expenditure like TOT, Surcharge, Octroi and
others.
a) Handle contract review to ensure that customer requirements are clearly identified
b) To ensure proper handling, packing and delivery of finished products to R&D's &
customers.
c) To control documents & data pertaming to his area of work.
d) To maintain quality records in his area of work.
e) To handle effectively customer supplied product.
f) To ensure proper identification method at finished goods store.
g) To handle customer complaint and to take appropriate corrective and preventive
actions.
h) Opening of Branches scheduled timings.
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i) Displaying of range of products within the Showroom.

j) Attending to customers, display products as per customers' demand.
k) Bringing awareness and convince customers on Quality and exclusive feature of
the products.
1) Maintenance of stock ledger books/stock control book, etc.
m) Safety of the Branches / C&F Depots and its property
• General Manager (Production): is over all in charge of Production &
Maintenance, activities of the Company with the assistance of DGM's, AGMS,
Managers,& Group workers. Arrangement of production activities in co-ordination &
laisoning with Marketing department, Materials, Stores, to achieve targeted production
& up keep Plant & Machinery, Utilities, Estates.
1) Organisation shift activities with proper allocation of work force
2) Effective utilitization of man power, consumable, spares and machinery
3) Effective maintenance of including Preventive Maintenance.
4) Monitor documents and data pertaining to production as per the requirement of
ISO-14001andISO-9001.
5) Implementation of the Departmental Policies.
• General Manager (Ri&D): is over all in charge of Research & Development in
the Company with the assistance of AGM's, Managers, Chemists,& Group workers for
New Product development, process improvement, alternative raw material search, cost
reduction, up gradation of existing products.
a. Organising the R&D activities with proper allocation of workforce
b. Effective utilization of man power, consumable, spares and machinery
c. Effective maintenance of including cost reduction, development of new product,
specification fixing, solving marketing problems, man power plarming, functional
guiding, support to other department, various committees,
d. Compliance of Drugs Control Department, guidelines rules & regulations etc.,
e. Control documents and data as per the requirement of ISO-14001 and ISO-9001 :
2001
f. Implementation of the Departmental Policies.
• Asst.General Manager (Materials): is over all in charge of Materials
Department in the Company with the assistance of Managers, Asst. Manager, Officers,
Steno & Staffs for procurement to make available a balanced flow of raw materials.

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Chapter 4. Company Profile

chemicals, packing, Aromatics Chemicals, Essential, Resionids, Oil &Fats, spare parts,
capital goods machinery & plant.
1. Organise the Materail department activities with proper allocation of work force
2. Effective utilitization of man power
3. Overall supervision and control of activities of Materials Department, including
materials plarming, procurement and inventory control.
4. Periodical review of systems & procedures relating to the Department and
introduction /implementation of reforms in Materials Management functions
including computerization, wherever necessary.
5. All administrative and legal matters of the Department.
6. Vendors' development, vendor evaluation and rating, price trend analysis,
commercial intelligence.
7. Introduction and implementation of cost control and cost reduction techniques
within the department.
8. Training of personnel of the department, including arrangement for deputation to
training programme/seminar/workshops etc.
9. Inter Departmental co-ordination.
10. Any other work entrusted by the Management.
11. Convenor, Purchase Negotiation Committee
12. As member of various committees constituted by the Managing Director in terms
of orders in force.
13. Control documents and data as per the requirement of ISO-14001 and ISO-9001
14. To control the Departmental Policies.
• Asst,General Manager (Stores): is over all in charge of Stores Department in
the Conipany with the assistance of Managers, Asst. Manager, Officers, Steno& stores
helpers for storing and make available a balance flow of raw materials, chemicals,
packing, Aromatics Chemicals, Essential, Resionids, Oil &Fats, spare parts, capital
goods machinery & plant. Etc.,
1. Organise the Stores department activities with proper allocation of work force
2. Effective utilitization of manpower.
3. Overall supervision and control of activities of Stores Department, including
materials planning, procurement and inventory control.
4. Periodical review of systems & procedures relating to the Department and
introduction/implementation
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Chapter 4. Company Profile

5. Reforms in Stores Management functions including computerization, wherever

necessary.
6. All administrative and legal matters of the Department.
7. Introduction and implementation of cost control and cost reduction techniques
within the department.
8. Training of persoimel of the department, including arrangement for deputation to
training programme/seminar/workshops etc.
9. Inter Departmental co-ordination.
10. Any other work to be entrusted to by the Management.
11. Convener for Disposal /Member Purchase Negotiation Corrmiittee
12. Control docimients and data as per the requirement of ISO-14001 andISO-9001
13. To control the Departmental Policies.
• Asst.General Manager (QAD): is over all in charge of Quality Assurances
Department in the Company with the assistance of AGM's ,Managers, Asst. Manager,
Officers, Shift, Chemists/ Trainee Chemists for Testing of enquiry samples, sampling and
testing of incoming raw materials, in process and intermediate products, testing of final
products. Analysis of boiler water and effluent water, cosmetic raw materials, supervision
of process at various franchise centers and analysis of finished products, competitor soap
samples, customer complaint samples received from marketing department.
1) The Quality objective of the organization is to maintain the reputation of the company
by providing consistent quality products to the customers at competitive price.
2) Organise the Quality Assurance department activities with proper allocation of work
force
3) Effective utilization of man power both in General shift & Shifts.
4) Overall supervision and control of activities of QAD
5) Guiding the Analysts for proper sampling and analysis of all input raw materials, in
process samples and final products.
6) Signing the test report and GRR prepared by analyst after due verification and
forwarding to HOD
7) Attending customers complaints received from the market from time to time.
8) Periodical study of our competitors products and reviewing/updating of our products/
packing specifications.
9) Study of slow moving and non-moving raw materials/ packing materials,& suggesting
for alternative used by and thereby reducing inventory.
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Chapter 4. Company Profile

10) Periodical Calibration of Measuring instmments.

11) Any other work entrusted by the Management.
12) Convener for SPDRC /Member Purchase Negotiation Committee
13) Control documents and data as per the requirement of ISO-14001& ISO-9001:2000
14) To control the Departmental Policies.
• Manager (Computers): Manager (Computers) is over all in charge of Computers
in the Company with the assistance of Staff for the following activities:-
1) Procurement of computers-Hardware, Software & accessories after getting the CA
approval
2) To co-ordinate with senior executives regarding the computerization.
3) Maintenance of Computer system.
4) Any other work entrusted by the Management.
5) Control documents and data as per the requirement of ISO-14001 & ISO-9001: 2001.
• Manager -E&S (Environment & Safety): is over all in charge of Environment
Safety, in the Company with the assistance of Staff & Group workers for the following
activities. :-
a) Accident prevention, control reporting, investigation & analysis.
b) Activities to comply with Statutory regulation-Factory Act, Air Act, Water Act,
Petroleum Rules (Stores/Handling & License), Sulphur Storage licence. Fire
Protection,
c) Periodically conducting Safety committee meeting & follow up of implementation of
safety committee recommendations.
d) Update & maintenance of all concerned statutory statistical records.
e) Co-ordinate with Welfare department regarding medical examination of workers, First
Aid Training, Ambulance maintenance etc.,
f) To control the Departmental Policies any other work entrusted by the Management
••• Manager -MID (Management Information Department): is over all in charge of
MID of the Company with the assistance of Staff for the following activities. :-
1) To conduct / convene the PPSRC meeting.
2) Furnish the details of process loss in production department.
3) Furnish the details of Total production & down time details.
4) Other work entrusted by the Management.
• Chief Security & Vigilance Officer (CSVO): is over all in charge of Security &
Vigilance of the department of the Company with the assistance of Officer/ Junior
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Officer, Senior Guards & Guards & Staff for Prevention of Sabotage, Espionage and
Subversive activities in Industry/Company.
1) Maintain strict perimeter security by the guard force.
2) Effective utilitization of man power both in General shift & Shifts
3) Carefiil selection and investigation of new employees at the time of hiring.
4) Establishing rules and regulations governing the action of employees while on
the job or on plant premises and enforcing them impartially.
5) Handling all critical materials according to government regulations with
particular attention being paid to storage; logging documents in and out,
handling only by authorized personnel restriction on reproduction of classified
material, destruction of classified waste. Etc.,
6) Making a thorough background investigation of all porters, messengers, and
maintenance staff as they are in a good position to gather information.
7) Maintaining tight security in critical and vulnerable areas in the plant and areas
where explosive/ flammable liquids or gases are stored or handled as well as
restricted areas where only certain persons are allowed:
8) Protection against thefts, Fire Fighting,
9) Collection of intelligence.
10) Any other work to be entrusted to by the Management.
• Asst. General Manager (Finance & Accounts): is over all in charge of
Accounts Department of the Company with the assistance of AGM's, Managers, Officers,
and Contract Supervisors for proper maintenance of Company's Accounts, Planning the
fimds requirements. Budgeting, Auditing, and Balance Sheet etc.
1) Overall control of Finance Accounts Department.
2) Maintenance of Company Accounts.
3) Liaison with Banking Institutions/Bankers.
4) Liaison with AG/Statutory/Proprietary Auditors in respect of Company balance sheet
work.
5) Preparation of Balance Sheet of the Company.
6) Comply with Statutory Requirements
7) Consolidate monthly indents and collections from Branches and present the data in the
monthly production review meetings and intimate production targets to all concerned.
8) Any other works entrusted by MD from time to time.

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• Manager (Accounts)
a) Preparation of Trial balance sheet and final accounts.
b) Attending to Audit enquiries.
c) Maintenance of posting of General Ledger.
d) Passing of journal entries.
e) Preparation of cost sheets/Audit.
f) Maintenance of sales tax correspondence & remittance.
g) Assisting to AG/Statutory/Proprietary Auditors.
h) Assisting the AG M (F&A) with regard to Bank reconciliation works,
i) Any other work entrusted by AGM (F&A) from time to time.
• Manager (PR&PF)
a) Maintenance of Wages, Salaries, Bonus, PF, ESI, Gratuity, Advances etc.
b) Meeting statutory requirements under the payment of wages Act, Bonus
Act, Pension & PF Act, professional Tax Act, and Income Tax Act.
c) Maintenance of all payments to Employees of the Company.
d) Computerization of Payroll Section
e) Any other work entrusted by AGM (F)/ GM (F) from time to time.
O The procedure followed in the decision making process, including channels of
supervision and accountability:
The Board of Directors is the decision making body. The Managing Director implements
the policies lay dovm by the Board with the assistance of General Manager and fimctional
heads through sub delegations.
O The norms set by it for the discharge of its functions:
The KS&DL Board prescribes the delegation of powers to Managing Director to carry out
the duties and responsibilities. Managing Director delegates to functional heads.
The fiinctions/activities of the Company are as follows with regard to Production and
Sales.
a) PreparationofBudgetfor every year
b) PreparationofArmual Action Plan. ,
c) Monthly production plan, preparation based on indents obtained from the
Branches and feedback from the RD's.
d) Maintain minimum inventory.
e) Addressing customer complaints.
f) Introducing new designs.
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g) Finalizationofthe Annual Accounts.

h) Furnish replies to Audit Queries.
i) Explore new marketing avenues for marketing the company's products.
j) Comply with all the required provisions of the Companies' Act, statutory rules and
regulations.
k) Government circulars and directives, provisions of the Kamataka Transparency in
Public Procurement Act or any other applicable laws/rules in force.
O The rules, regulations, instructions, manuals and records, held by it or under
its control or used by its employees for discharging its functions:
The Company has been following the below mentioned rules and regulations, manuals
and records for discharging its functions: The Companies Act, 1956, Memorandum and
Articles of Association, Standing Orders, Conduct & Disciplinary Action Rules, Medical
Attendance Rules, Professional Tax Act, Income Tax Act, VAT, Provident Fund Act,
Employees State Insurance Act, 1948, Workmen Compensation Act, 1923, Industrial
Employment (Standing Orders) Act, 1946, Payment of Wags Act, 1936, Minimum Wages
Act, 1948, National Festival and Holidays Act. 1963, Maternity Benefit Act, 1961,
Payment of Gratuity Act, 1972, Factories Act, 1948, hidustrial Dispute Act, 1947, Central
Sales Tax Act, Kamataka Tax on Entry of Goods Act, Payment of Bonus Act, 1965,
Kamataka Transparency in Public Procurement Act, 1999 and Trade Union Act, 1926.
O Manuals & Records: The Memorandum and Articles of Association of the
Company, Purchase Manual, Stores Manual, Statutory Records, Quality & Environmental
Policy. Production Manual, Annual Returns, The Office Orders, Notification, and
Circulars etc. issued by the Government and by the Company from time to time.
A statement of the categories of documents that are held by it or under its
control:
The statement of categories of documents held by different departments of the Company
are given below:
O Accounts & Finance Department:
a) Periodical retums i.e. Provident Funds Annual Retums, ESI Half yearly returns.
Income Tax Annual Retums, Tax Audit Reports, Cost Audit Reports, Annual
Report, TDS Retums, Monthly VAT retums, etc.
b) Under Companies Act, the following documents/retums are being filed before the
Registrar of Companies. A) Form 32 and B) Annual Retums.

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O HRD/ Time Office: Maintenance of documents i.e. periodical returns submitted

to Employment Exchange, Maintenance of documents in respect of SC/ST employees,
Maintenance of documents in respect of Backward Classes and Minorities, Maintenance
of documents in respect of Women's Grievance Redressal Committee, Maintaining
Circulars files. Leave Registers, Stores & House Keeping, Personal files of all employees.
Performance Appraisal of each employee. Property Returns, Maintenance of documents
relating to court cases and enquiry proceedings and related matters. Maintenance of Truce
Agreement Files, Maintenance of Agreement Files relating to Security Agencies and
House Keeping, and Training Documents.
O Marketing Department: Customer Complaint Register, Customer Feed Back
Register, Maintenance of monthly sales details of all Branches, Maintenance of Rental
Agreements of the Branches, Maintaining Documentation in coimection with
Consignment Sales, Maintenance of Documents in coimection with Registration of
Branches under Shops and Establishment Act, Approved Price list document, Details of
various schemes currently operated, Sales Day Book, Stock Ledger, and Consignment
Memos.
Table 4.1 KS&DL Branch Address
1) Karaataka Soaps 8c Detergents Ltd, 5) Kamataka Soaps & Detergents Ltd
No. 310, 6* Main Seven Star Building, II Floor,
18 Cross,, Malleswaram, No.A-80 3'' ^ Avenue, Aima Nagar
BANGALORE 560 055. CHENNAI600 102
2) Kamataka Soaps & Detergents Ltd 6) Kamataka Soaps & Detergents Ltd
8/33, II Floor, Satbhruwan 54-187/5, M.G. Road
School Marg, W.E.A., Karol Bagh, SECUNDERABAD 500 003
NEW DELHI 110 005
3) Kamataka Soaps & Detergents Ltd 7) Kamataka Soaps & Detergents Limited,
154, Harish Mukherj ee Road, PB 7005,12/274B 1'' Floor,
CALCUTTA 700 025 Dnyan Sagar, (Pinto Villa)
RSK Bole Road, Dadar (West),
MUMBAI400 28
4) KSDL, Sandal Wood Oil Division 8) KSDL Duty Paid Godown
Manandawadi Road, P B . 6,SHIM0GA
MYSORE - 570 008
Source: Company Brochure
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4.5 MARKETING MIX STRATEGIES OF KS&DL

4.5.1 Product strategies of KS&DL
KS&DL has five product lines. They are Soaps, Detergents, Cosmetics,
Sandalwood & Sandal Oil, and finally Agarbathies.
All the product lines have a series of products and offered in different sizes.
Toilet Soaps
H Mysore Sandal Soap s :6 In 1 Gift Pack B:iJasmine Soap
gj Mysore Sandal Classic Soap m:3 In 1 Gift Pack nCarbolic Soap
n Mysore Rose Soap eMysore Sandal Gold Soap EajWave Turmeric Soap
OiMysore Herbal Care a:Mysore Sandal Baby Soap eLavender Soap

Incense Sticks:
We offer high quality Incense Sticks that apart from spreading fragrance delivers peace
and tranquility. They create an atmosphere of solace when used.
Talcum Powders
We offer Talcum Powders that are refreshing and give a cooling effect. Thefiragrancelast
for long. The categories available are:-
s Mysore Sandal Talc, E?Mysore Sandal Baby Talc
Detergents
Based on quality, safety and performance, we offer detergents that apart fi'om whitening
the cloth, provides a mild and soothing fragrance to it. They are available in:-
B Mysore Detergent Powder e Mysore Detergent Cake
SandalwoodOil
We offer Sandalwood oil with therapeutic and beauty enhancing properties. Our
sandalwood oil reduces tension, relieves skin problems and also softens the skin.

a;Mysore Sandalwood Oil

Liquid Soap
We offer Liquid Soap with fi'eshening and moisturising properties. These not only
moisturise the skin but also soften them.
B .'Wave Duo Liquid Body Wash a :Wave Herbal Wash

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O Toilet Soaps
Mysore Sandal Soap {Available in 17gm, 75gm. & 125gm.): Mysore Sandal Soap
contains sandalwood oil fragrance which has excellent antiseptic properties for
complexions, soothes prickly heat & other skin rashes too. The Mysore Sandal soap of
KS&DL is probably the only soap in the world with pure natural sandalwood oil distilled
from the best trees of South India.
Mysore Sandal Bath Tablet Trio {Available in 150gm. X3 Nos.): Contains pure
natural Mysore Sandal wood oil along with skin conditioners and moisturizers. The all
time favorite Mysore Sandal soap, the beauty secret of millions, gift packed in a set of 3
bath tablets.
Mysore Sandal Bath Tablet {Available in ISOgm.): The original sandal soap
which is still the favorite for its gentle, soothing qualities and fragrance, keeps the skin
glowing, soft, blemish free, forever young and beautifiil.
Mysore Sandal Gold {Available in 75gm. &
I25gm.): The glamorous entrant to the sandal family,
the result of intensive research by the company to
bring out the best soap in the country. Mysore Sandal
Gold is made with pure sandalwood oil, almond oil,
lanolin and moisturizer. The soap keeps the skin
blemish-free bringing a radiant glow to the skin.
Mysore Sandal Classic Soap {Available in
75gm.): This soap contains skin conditioners,
moisturizers and pure natural sandal wood oil based
fragrance with therapeutic & antiseptic properties
which nourishes the skin, making it soft, smooth &
glowing forever. This is the only soap of its kind
with the careful blend of glycerin and pure natural
sandalwood oil, to moisturize and nourishes the skin.

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Chapter 4. Company Profile

Mysore Jasmine Soap {Available in

ISOgm.y. This soap is made out of pure vegetable oil
base with exotic jasmine fragrance along with skin
moisturizers to keep the skin soft and beautiftil.

Mysore Lavender Soap (Available in

]50gm.): This soap is made of pure vegetable oil
base blended with natural Lavender fragrance added
with skin conditioners, which keeps the skin young
and fresh.

Mysore Sandal Rose Soap {Available in

lOOgm. & 125gm.): This soap contains the dew-drop

1m ^

jL^fl wi^A
freshness of just plucked roses captured in soap form
to give a feeling of a shower with rose petals. The
dew drop freshness of just plucked roses captured in

^j
B soap form, to give a feeling of a shower with rose
petals. Ingredients:- Super max grade talc. Titanium
Dioxide, Tetra sodium. Rose Perfume, Cos colour
and silicon.

3-In-l Gift Pack {Available in 150gm. X 3

Nos.): The luxury bath soaps with the traditional
fragrances of natural Sandal, Jasmine and Rose,
specially gift-wrapped in one single pack for family
use for all occasions and for all customers.

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6-in-l Gift Pack {Available in I50gm. X 6

Nos.y. The ideal gift of six fi^agrances of natural
Sandal, Jasmine, Classic, Special Sandal, Rose and
Lavender, in an aesthetically designed and gift-
wrapped, n a re-usable plastic container.

Mysore Sandal Gold Sixer (Available in

]25gm. X 6 Nos.y. The super premium soap in an
attractive re-usable plastic container. A treasured gift
that leaves a lasting impression.

Mysore Sandal Baby Soap {Available in

75gm.y. This soap has natural Mysore sandal wood
oil, enriched with moisturizers and almond oil which
keeps the baby skin blemish-free and lessens the
chances of a nappy rash.

Wave Turmeric Soap {Available in 75gm.

lOOgm. & 125gm.y. The new generation soap made
out of pure vegetable oil with ingredients like
Turmeric, Sandal and Almond oil which offer
Freshness, Fragrance and Fairness (F-3 factor).

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Mysore Carbolic Soap (Available in

150gm.): This has antiseptic and germicidal
properties, with good cleansing action.

Mysore Sandal Herbal Care (Available in

15gm. 75gm. & lOOgm): This soap is made out of
pure vegetable oil base added with skin conditioners,
anti-bacterial agents blended with concept of 19
aroma therapy essential oils to treat the skin.

O Liquid Soaps

Wave Herbal Liquid Hand Wash (Available in

200ml, 500ml): This is a hand wash blended with
mixed surfactants added with 19 natural essential oil
perfiime and containing aloe Vera, conditioners and
moisturizers to give soothing effect for a gentle and
soft hand.
Wave Liquid Body Wash (Available in 200ml,
500ml): The body wash is specially made with
moisturizers, skin conditioners, aloe vera conditioners,
to ensure the skin has natural moisture balance, and to
rejuvenate the skin. This exclusive product is
presented in two fragrant variants of enriched natural
Sandal and Rose.

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O Detergents

Mysore Detergent Powder

High quality detergents with well balanced
formulation of active matters and other builders.

Mysore Detergent Cake

O Cosmetics

Mysore Sandal Talc (Available in, 50gm. lOOgm. &

SOOgm.y In convenient and pretty packs, the talc is the
1 .^ right remedy for prickly heat and keeps one fresh and
1 fragrant all day long.
Mysore Sandal Baby Talc {Available in 50gm. &
lOOgm.y. This talc is specially formulated to protect
baby's tender skin from nappy rash and other skin
irritations.

O Sandal wood and Sandal oil

Sandalwood It is a small, graceful shrub/tree with part

parasitic feeding habits with yellow to maroon flowers. It
has fragrant wood. The heartwood is used, as well as the
essential oil extracted from it. It is considered a cooling
and calming aromatic herb, with astringent,
INDIAN RED SANC€R3 VVOOO
iPTeROCARPUS SANTALMUS) antispasmodic, digestive, diuretic, analgesic and

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antiseptic properties. Proper Mysore sandalwood oil is

extremely expensive, although a variety of cheaper
sandalwood essential oil is also on the market.
Sandalwood Oil Sandalwood oil has therapeutic and
beauty enhancing properties which were recognized and
have found mention in our epics and ancient texts like
the 'Nirukta' (a Vedic commentary of 5 BC), Patanj all's
'Mahabhasya'(100 BC), Kautilya's "Arthashastra"(200
BC) and in the Ramayana and Mahabharata.
Properties of sandalwood oil:
Promotes hydration and moisture, preventing wrinkles
Softens and soothes the skin
Effective in relieving dehydrated skin - making it great for anti-ageing skincare
Relieves itching and inflation of the skin
Acts as an astringent which has great toning effect on the skin
Fights oily skin conditions
Prevents the skin from forming ugly scars and fights dry eczema and skin cancer
Fragrance creates a calming and harmonizing effect
Reduces tension and confusion

O Agarbathies are an essential part of all auspicious occasions, spreading a divine

fragrance that calms the mind and lifts the spirits. KSDL's agarbathi portfolio includes the
inimitable collection of typical fragrances. Every Agarbathi is hand-rolled to perfection.
Using a traditionally blended paste made from the best ingredients to provide a soothing
fragrance throughout the day.
Exotic Agarbathies are available in wide
range of fragrances for all preferences. They are
Chandan, Rose, Jasmine, Mysore Sandal Premium,
Bodhisattva, Sir MV 100, Nagachampa, Suprabhatha,
Parijatha & Meditation.

p Mysore Sandal Premium - with more powerful sandal fragrance.

p Mysore Sandal Regular - with the exotic fragrance of pure Sandalwood oil.
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p Mysore Rose - with the essential oil of rose.

p Mysore Jasmine - with the fragrance closes to Jasmine flowers.

4.5.2 Pricing strategies Of KS&DL

KS&DL adopts the simplest methods of pricing, the cost-plus pricing for all its
product lines. The cost includes expenses like material, logistics, selling, promotions,
other overheads and lastly, the trade margins. The selling price is calculated on the basis
of. Selling Price = Total cost + Profit. The selling prices of all the products are very
competitive with no compromise on the quality. There would always be some allowance
for discounts to adjust to the market pressures. Therefore, a company follows cost +
pricing, competitive pricing, market oriented pricing, in marketing its product.
These strategies are followed according to the situations.
1. Competition-based pricing Setting the price based upon prices of the similar
competitor products. Competitive pricing is based on three types of competitive
product:
• Products have lasting distinctiveness from competitor's product. Here we can
assume a) The product has low price elasticity, b) The product has low cross
elasticity and c) The demand of the product will rise.
• Products have perishable distinctiveness from competitor's product, assuming the
product features are medium distinctiveness.
• Products have little distinctiveness from competitor's product assuming that:
a) The product has high price elasticity, b) The product has some cross elasticity,
and c) No expectation that demand of the product will rise.
2. Cost-plus pricing
Cost-plus pricing is the simplest pricing method. The firm calculates the cost of
producing the product and adds on a percentage (profit) to that price to give the selling
price. This method although simple has two flaws; it takes no account of demand and
there is no way of determining if potential customers will purchase the product at the
calculated price. Price = Cost of Production + Margin of Profit.
3. Market-oriented pricing
Setting a price based upon analysis and research compiled from the targeted
market. Also with the cost price.

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4. Penetration pricing
The price is deliberately set at low level to gain customer's interest and
establishing a foot-hold in the market.
5. Price discrimination
Setting a different price for the same product in different segments to the market.
For example, this can be for different ages or for different opening times, such as cinema
tickets. Market orientated pricing is also a very simple form of pricing used by very new
businesses. What it involves is, setting the price of your product/service according to
research conducted on your target market.
6. Premium pricing
Premiimi pricing is the practice of keeping the price of a product or service
artificially high in order to encourage favourable perceptions among buyers, based solely
on the price. The practice is intended to exploit the (not necessarily justifiable) tendency
for buyers to assume that expensive items enjoy an exceptional reputation or represent
exceptional quality and distinction.
7. Marginal-cost pricing
In business, the practice of setting the price of a product to equal the extra cost of
producing an extra unit of output. By this policy, a producer charges, for each product unit
sold, only the addition to total cost resulting from materials and direct labour. Businesses
often set prices close to marginal cost during periods of poor sales. If, for example, an
item has a marginal cost of $1.00 and a normal selling price is $2.00, the firm selling the
item might wish to lower the price to $1.10 if demand has waned. The business would
choose this approach because the incremental profit of 10 cents fi-om the transaction is
better than no sale at all.
Table: 4.2
Price List Of KS«&DL

SI. Product MRP/Unit MRP/CB

Product Name
No. Code (Rs.) (Rs.)

SOAPS
1 PROOOl Mysore Sandal Soap - 75gms 23 4600
2 PRO002 Mysore Sandal Soap - 125gms 37 4440
3 PRO003 Mysore Sandal Gold - 75gms 30 2160
4 PRO004 Mysore Sandal Gold - 125gms 50 1800

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Chapter 4.

5 1 PRO005 1Mysore Sandal Classic - 75gms 22 3168

6 PRO006 Mysore Sandal Classic (Trial) - 75gms 21 3024

7 PRO007 Sandal Bath Tablet (S) - 150gms 45 4050

8 PRO008 Sandal Guest Tablet - 17gms 5 2400

9 PRO009 Mysore Sandal Baby Soap - 75gms 25 1800

10 PROG 10 Gold Sixer-6X 125gms 300 2400
11 PROOll GiftPack-6X150gms 250 3000
12 PRO012 Sandal Bath Tablet (T) - 450gms 130 3900
13 PRO013 Sandal Jasmine Rose (SJR) - 450gms 100 3000
14 PRO014 Mysore Rose Soap - lOOgms 12 1728
15 PRO015 Mysore Sandal Herbal Care Soap - lOOgms 16 2304
16 PRO016 Herbal Care Guest Tablet - 17gms 2 1080
17 PRO017 Rose Guest Tablet - 17gnis 2 1080
18 PRO018 Mysore Carbolic - ISOgms 13 1404
19 PRO019 Wave Turmeric - lOOgms 16 2304
20 PRO020 Mysore Jasmine Soap - lOOgms 12 1728
21 PRO021 Wave Lime PDS - 75gms 9 1944
22 PRO022 Mysore Washing Half Bar - 250gms 12 720
23 PRO023 Laundry Flakes - 25Kgs 1271 1271
COA/LSUMER OFFERS
1 PRO024 Mysore Sandal Gold - 2 X 125gms - CO 90 1620
2 PRO025 Mysore Sandal Classic - Super Saver ( 2 X 75 gms) 42 3024
3 PRO026 Sandal Jasmine Rose (SJR) - CO 90 2700
4 PRO027 Wave Cologne Soap - 2 X 7 5 gms 22 2376
5 PRO028 Wave Lime - 2 X 75 gms 22 2376
6 PRO029 Wave Lime lOOgm Shuchi Sambrama Kit 12 1728
7 PRO030 Wave Lime lOOgm Shuchi Sambrama Kit (3+1) 48 1728
8 PRO031 Wave Turmeric - 2 X 75 gms 22 2376
9 PRO032 Wave Turmeric - 4 X lOOgms (3+1) 42 1512
10 PRO033 Mysore Rose Soap - 4 X 125gms 48 1152
11 PRO034 Mysore Rose Soap Super Saver - 400gms (3+1) 38 •1368
12 PRO035 Mysore Rose Soap - 3 lOOgms 30 1440

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DETERGENTS
1 PRO036 Mysore Detergent Cake - 150gms 7 700
2 PRO037 Mysore Detergent Cake - 150gms 6 600
3 PRO038 Mysore Detergent Cake - 125gms 5 600
4 PRO039 Mysore Detergent Cake - 250gnis 10 600
5 PRO040 Mysore Detergent Powder - 1 Kg 60 960
6 PRO041 Mysore Detergent Powder - 25 Kgs 1375 1375
7 PRO042 Kleenol - Liquid Detergent 2 Kgs X 8 59 472
8 PRO043 Kleenol - Liquid Detergent 20% AD - 5 Kgs 147.5 147.5
9 PRO044 Kleenol - Liquid Detergent 20% AD - 50 Kgs 1475 1475
10 PRO045 Kleenol - Liquid Detergent 20% AD - 35 Kgs 1032.5 1032.5
11 PRO046 Kleenol - Liquid Detergent 20% AD - 200 Kgs 6100 6100
Kleenol - Liquid Detergent 20% AD - 200 Kgs
12 PRO047 8600 8600
(RBI)
13 PRO048 Sanitiser Powder - 50 Kg 2250 2250
14 PRO049 Rose Liquid Toilet Soap 46 230
15 PRO050 Wave Liquid Hand Wash 200 ml 55 1980
16 PRO051 Wave Liquid Hand Wash 500 ml 100 1800
CO^il\IETICS
1 PRO052 Mysore Sandal Talc - 300gms 75 1800
2 PRO053 Mysore Sandal Talc - lOOgms 35 1260
3 PRO054 Mysore Sandal Talc - 50gms 20 2000
4 PRO055 Mysore Sandal Talc - 20gms 0
5 PRO056 Mysore Sandal Baby Powder - 50gms 18 1800
6 PRO057 Mysore Sandal Baby Powder - lOOgms 30 1440
7 PRO058 Wave Cologne Talc - lOOgms
5.4iViMLWOOD & SANDAL OIL
1 PRO059 Sandalwood Billets - 50gms 400 19200
2 PRO060 Sandalwood Billets - lOOgms 800 19200
3 PRO061 Sandalwood Billets - 200gms 1600 19200
4 PRO062 Sandalwood Billets - 300gms 2400 2400
5 PRO063 Sandalwood Billets - lOOOgms 8000 8000

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6 PRO064 Sandalwood Billets - 3000gms 24000 24000

7 PRO065 Sandlawood Oil - 5gms 1200 14400
8 PRO066 Sandlawood Oil - 9gms 2160 25920
9 PRO067 Sandlawood Oil - 1 Ogms 2400 28800
10 PRO068 Sandlawood Oil - SOOgms 120000 120000
11 PRO069 Sandlawood Oil - lOOOgms 240000 240000
AGARBATHIES
1 PRO070 Mysore Sandal Agarbathi (P) Hex - 20 sticks 12 2880
2 PRO071 Mysore Sandal (3 in 1) - lOOgms 40 4800
3 PRO072 Mysore Sandal (3 in 1) - 21 sticks 12 2880
4 PRO073 Sandal Regular 30 sticks 12 2880
5 PRO074 Sandal Agarbathi (P) (Rect) 9" - 20 sticks 12 1440
6 PRO075 Sandal Agarbathi (Reg) 9" - 20 sticks 12 1440
7 PRO076 Jasmine (Regular) - 30 sticks 12 2880
8 PRO077 Jasmine (Regular) 9" - 20 sticks 12 1440
9 PRO078 Jasmine Roll - 35gms 6 1440
10 PRO079 Jasmine Roll - 70gms 12 1440
11 PRO080 Rose (Regular) - 30 sticks 10 2400
12 PRO081 Rose Agarbathi (Regular) 9" - 20 sticks 12 1440
13 PRO082 Nagachampa Agarbathi - 20 sticks 5 3000
14 PRO083 Nagachampa Agarbathi - 40 sticks 10 3000
15 PRO084 SIRMV 100-100 sticks 20 2400
16 PRO085 SIRMVlOO-lOOgms 22 2640
17 PRO086 Mediatation Hex - 20 sticks 12 2880
18 PRO087 Parijatha Hex - 20 sticks 10 2400
19 PRO088 Suprabatha Hex - 20 sticks 10 2400
20 PRO089 Jasmine Big Agarbathi - 100 sticks 36 4320
21 PRO090 Mysore Sandal (P) Big Agarbathi -100 sticks 39 4680
22 PRO091 Rose Agarbathi Economy -15 sticks 5 1200
Source: KS&DL price list

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4.5.3 Promotional strategies of KS«&DL

From 1973 to 1988, for promoting its products, KS&DL was relying on Mysore
Sales International Limited (MSIL). Since 1989, KS&DL has its own promotion
department. The Indian cricket captain, Mahendra Singh Dhoni was roped m by KS&DL
for Rs 84.85 lakh in January 2006 for a two-year term. Later, the contract was cancelled
due to the busy schedule of the star cricketer. The details of promotional effect are given
below:
1) Advertising
The different media in which the advertisements of KS&DL appear are,
a) News Papers: The Hindu, Deccan Herald, Prajavani, Samyukta Kamataka (for all
products).
b) Magazines: Stardust, Famina, Film Fare, Sudha, Taranga, Gruhashobha (for all
products).
c) Radio: FM radio, Nandana and Film Songs in Vivid Bharathi.
d) Television: DD1, DD9, Udaya TV
e) Wall paintings and Hoardings in major cities.
f) CCTV (Closed circuit): CCTVs placed on the platforms of Railway Stations and
Bus Stations.
g) Transit Advertising: on company owned vehicles, BMTC buses in Bangalore.
h) Company's official website: www.mysoresandal.com. The company website is
designed by professionals. The site carries high image of the company and also
depicts the rich heritage of Kamataka. The site is supported by a continuous play
back classical music for the person viewing the site.
2) Sales Promotion Activities of KS&DL
Consumer Promotion tools are
a) Free Samples: on Mysore Sandal Shampoo and Agarbathies.
b) Discounts: on all the products of KS&DL if the buyers (KS&DL employees and
the consumers) buy at factory gates.
c) Premiums: on Shampoos and Agarbathies.
d) Point-of-Purchase Display (POP): Display of Mysore Sandal Baby talc and Soap,
Mysore Sandal Gold in retail outlets.
Retailers Promotion Tools are, a) Premiums, b) Display Allowances and c)Seasonal
discounts
Other Promotion tools are.
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a) Trade Fairs and Exhibitions: Most often, KS&DL prefers to sell its products in
trade fairs and exhibitions as this is one of the cheapest means of promotion.
b) Sponsorship: KS&DL has the practice of sponsoring academic programs like
conferences in which, the company would be having stall to promote its products.
And also, KS&DL sponsors gifts for "Surabhi", a weekly cultural program in
DDL

3) Personal Selling At KS&DL

KS&DL has strong team sales executives, covering all the cities in respective
states. The Bangalore branch alone has around 90 field staffs and 15 junior officers. These
executives report to 3 officers in Bangalore. The executives are well trained and are
highly motivated to carry on the sales job. The main objectives of the sales team are
a) To generate regular business from the existing charmel members and to develop the
market with respect to new geographical areas and new customer base.
b) Collections for invoices raised, and
c) To minimize the outstanding balance with the charmel members.
To motivate its sales team, KS&DL has attractive monthly incentives for its
executives. The incentive schemes have been designed around the three parameters, which
are nothing but the objectives of the sales team. Each parameter is allocated with marks,
like Sales Growth - 40 marks. Collections - 30 marks, and Debtors - 30 marks.
In addition to the above, the supervisors get
• Rs.5000 for Highest growth for the year.
• Rs.5000 for Highest collection for the year.
Other awards include,
• Honorable minister's trophy for the best of the Southern branches, Rs.2500.
• Best supervisors of the branch get Managing Director's trophy and Rs.5000.
Mysore sandal soap may have faced a lot of problems with Indian skipper MS Dhoni,
but it now has reason to rejoice with the pretty Neetu Chandra becoming their new face
of endorsement. The actress is undeniably pleased for she thinks that the longstanding
soap is a mark of beauty and it is an honor to endorse it.

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4) Sandal Farming
The company has decided to enter into buyback arrangements with progressive
farmers. "Besides giving sandalwood sapHngs at a nominal price, KS&DL would help
them with technical know-how and inputs. After the 15-years maturity period, the
company would buy back all the produce at a price existing at that point.
Though the company had devised a similar plan four years ago, there was not
much headway. But this time around, the company plans to give a thrust in the Deccan
plateau area, which is suitable for the growth of sandalwood. The fall in sandalwood
availability, however, did not hit production as there were enough stocks for the whole
year.
"We have processed about 7,200 tonnes last year as against 6,200 tonnes in the
previous year," Mr Anil Kumar(Managing Director) says. This year, the company hopes
to process 8,000 tonnes and achieve a turnover of Rs 140 crore.

Sandalwood trees on the premises of Karanji Lake Nature Park in Mysore.

With the State Government issuing a notification on ownership rights, private

parties and institutions in Kamataka can now sell sandalwood to Government agencies
such as Kamataka Soaps and Detergents Ltd.

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4.5.4 Place/Distribution Strategies of KS&DL

KS&DL has 3 production centres, 7 marketing offices spread across India. The
marketing offices are located in Bangalore, Chennai, Hyderabad, Calcutta, Mumbai, New
Delhi and Kanpur. KS&DL is operating through its 250 strong stockists and Carrying and
Forwarding agents (re-distribution stockists). The company depots supply goods to C&F
agents and the stockists appointed in all major cities. The C&F agents and the stockists in
turn supply to wholesalers and the retailers.
The C&F agents, stockists and wholesalers get a trade discount of 5.25% on the
invoice value while the retailers get up-to 18-20% on total invoice value. The retailers'
margin includes trade discount (margin), cash discounts, quantity discounts, product
discounts and finally, the turnover discounts. Except the turnover discount, other
discounts are settled for each invoice. And, the turnover discount is settled once in a
quarter. At the same time, KS&DL also has its direct selling team. During specified days
of the week, the company owned vehicles carrying the products, sell all the types of
products of the company in some designated localities of different cities.

Soap is primarily targeted towards women, as they are the chief decision-makers
in terms of soap purchase. Medicated positionings Uke germ killing and anti-bacterial are
marketed to families.
About 75%) of soap can be bought through these different types of outlets:
Kirana Store: This is the most common source for buying soap, which usually forms a
part of the month's grocery list (which is purchasedfi-omthese Kirana Stores). Consumers
exhibit loyalty to these stores, which is largely dependent on proximity to consumers'
homes. Here consumers buy across the counter and do not have an option of browsing
through display shelves.
Pan-Beedi Shops: These are really small shops, almost like handcarts, and they are
primarily set up to dispense cigarettes and chewing tobacco. However, one would find
such a shop at every corner and they are the main sources of soap purchase for the lower
socio-economic classes. These kinds of shops exist by the dozen in rural areas.
Department Store: In India, there are very few department stores and the "Indiahised"
version of department stores are called "Sahakari Bhandars." It is still a fairly new
concept. However, department stores have good display counters and this is the only place
where consumers get a first hand experience of shopping and choosing from available
options. Here soap prices are also discounted below the retail prices.

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The distribution channels of KS &DL is shown in the following chart/ Figure:

Fig 4.6 Distribution Channels of KS&DL

PRODUCTION DEPARTMENT

-^

CFGS
[CENTERLISED FINISHED GOODS STORES)! J

\/
r
DPG & C&FAs
(DUTY PAID GODOWNS AND CLEARING AND FORWARDING i
AGENCIES] j

RDS
'^ (RE-DISTRIBUTION STOCKISTS] \

J t
\ WHOLESALERS
SUB-STOCKISTS 1

'x^
RETAILERS

S^

END USERS i

^
Chapter 4. Company Profile

4.6 ANALYSIS OF PERFORMANCE OF KS i& DL

As already discussed, KS & DL offers different types of product in addition to

Mysore Sandal Soap. The analysis of overall performance of company in production,
sales and profit can give some insights into the evaluation of marketing strategies. The
effectiveness of any company is reflected in its trends in sales, profits and production.
Therefore, the attempt is made here to analyse the performance of the company,
considering the trends in sales, production and profit during the last five years. Further,
the analysis of total cost, costs on advertising, publicity, sales promotion and distribution
has also been made to the analyse the share of advertising, distribution and sales
promotion costs in total cost.
The table 4.3 shows the quantity of production and the annual growth rates for the last
five years.
Table 4.3
Production Trends of KS & DL

Product/s 2005 AGR 2006 AGR 2007 AGR 2008 AGR 2009 AGR
(in Tonnes)

Agarbatties 263.63 - 327.49 24.2 242.96 -25.8 424.45 74.6 208.66 -50.8

Detergents 888.29 - 715.81 -19.4 1240.4 73.3 1425.8 14.9 1871.5 31.2

Mysore
53.18 - 76.64 44.1 95.42 24.5 61.55 -0.35 158.54 157.6
Sandal Talc

Sandalwood
2.03 - 3.7 82.3 2.74 -25.9 1.54 -77.9 1.15 -25.3
Oil

Soaps 6386.98 - 6110.7 -4.32 5033.4 -17.6 5998.2 19.6 6452.9 7.6

Source: CMIE report

The researcher has computed the annual growth rate to get the trends of production, sales,
profits and costs. The annual growth rate is computed by using the following formula.
Current year figure - Last year figure
Annual growth rate = * 100
Last year figure
The table 4.1 reveals that there has been decreasing trend in the annual production of
Agarbathis, sandalwood oil and sandalwood talc. However, in case of Mysore sandal
soap and detergents, although initially there was decreasing trend, in 2006 & 2007, there
has been increasing trend, afterwards.

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Chapter 4. Company Profile

The table 4.4 shows the Sales Trend and the annual growth rates for the last five years.

Table 4.4
Sales Trends of KS & DL
Product/s
2005 A6R 2006 AGR 2007 AGR 2008 AGR 2009 AGR
(Rs.Crore )

Agarbatties 3.68 - 4.27 16.1 3.98 -6.7 5.82 46.2 5.79 -0.5

Detergents 2.1 - 1.98 -5.7 2.2 11.1 3.43 55.9 5.78 68.5

Mysore
2.91 - 1.98 -31.9 1.59 -19.7 1.79 0.12 3.24 81.0
Sandal Talc

Others 0.67 - 0.01 -98.5 0.11 1000 0 -100 0.38 -

Sandalwoo
0.07 - 0.08 14.2 0.02 -75 0.27 1250 0.29 7.4
dOil

Soaps 83.31 - 93.48 12.2 103.01 10.2 108.2 5.11 130.06 20.1

Source: CMIE report

Only from last 2 years there has been increasing trends in the sales of Mysore sandal soap
and detergents. The position in production and sales can be attributed to number of
factors like lower amount of investment on promotional efforts, political and social
consideration scoring over marketing consideration, greater wage and overhead
expenditures, rising sandalwood prices etc.

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Chapter 4. Company Profile

The table 4.5 shows the profits and the annual growth rates for the last five years.
Table 4.5
Trend of profits of KS & DL
SL.NO YEAR PROFIT PER ANNUM AGR
IN RUPEES

1 2005 2,67,00,000 -

2 2006 1,79,00,000 -32.95

3 2007 3,78,00,000 111.17

4 2008 8,82,00,000 133.34

5 2009 11,6800,000 32.42

In the year 2006 the profit has fallen considerably but in the year 2007-2008 there
has been considerable increase in profits. However, as compared to these years, in the
year 2009 the growth rate has fallen.

The table 4.6 shows the total expenses, advertising and publicity expenses, sales
promotion and distribution expenses and the annual growth rates for the last five years.

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Chapter 4. Company Profile

Table 4.6
Trend of Total Expenses, Advertising, Publicity Expenses and sales promotion and
Distribution Expenses of KS & DL
SL ADVERTISING A N D SALES P R O M O T I O N % ON

.N PUBLICITY A N D DISTRIBUTION TOTAL

YEAR TOTAL EXPENSES AGR AGR AGR
O EXPENSES EXPENSES COST.

1 16.71
2005 95,56,84,797 4,04,81,065 11,92,27,415
%

2 17.93
2006 85,94,56,599 -10.06 5,41,69,731 33.81 10,00,02,731 -16.12
%

3 16.77
2007 1,06,26,82,573 23.64 7,16,57,125 32.28 10,65,90,650 6.58
%

4 15.80
2008 1,15,85,36,413 9.02 4,61,56,305 -35.58 13,69,22,533 28.45
%

5 15.36
2009 1,29,84,84,507 12.08 8,07,58,972 74.95 11,87,08,554 -13.3
%

Total expenses have recorded decrease in 2006. However, there has been increasing trend
afterwards. Except in the year 2008, there has been continuous increase in advertising &
publicity expenses. But in case of sales promotion & distribution expenses there has been
negative growth in the year 2006 and 2009, but in other years there has been continuous
increase. The company has invested a considerably a large amount on advertising, in the
year 2009. But the expenses on sales promotion in 2009 have decreased considerably.

4.7 CURRENT SCENARIO OF KS&DL

The Kamataka Soaps and Detergents Limited (KS&DL) has now made available
its products at subsidised rates through 800 PDS retail outlets in the State. The KS&DL
recently held a meeting with Kamataka State Food and Civil Supplies Corporation
(KSFCSC) officials to improve its marketing network through the PDS. The KS&DL and
KSFCSC had signed a Memorandum of Understanding to improve the marketing strategy
of the KS&DL products.
KS&DL's objectives are to broad base KS&DL sales and reach as many customers
as possible directly. KS&DL wants to ensure availability of these products to consumers

153 i
„ / ^
 Chapter 4. Company Profile

throughout the State and at reduced cost. With the price of sandalwood rising
phenomenally due to dwindling reserves, sandalwood soap major KS&DL has decided to
expand its product offerings. The sandalwood soap contributes to 80 per cent of the
company's turnover. The company has 70 per cent market share in the. 8,000-tonne
sandalwood soap market in the country.
Table 4.7 presents the relative position of top six soap manufacturers at the end the year
2007-2008

Table 4.7
Relative position of top six soap manufacturers
Procter &, Godrej Karnataka
Hindustan Wipro
Gamble Consumer Henkel Soaps &
(12 Months Unilever Ltd.
Home Products Spic Ltd Detergents
data) Ltd. (Mar
Products Ltd. Ltd. (Dec2007) Ltd.
(Dec2007) 2008)
(June2008) (Mar 2008) (Mar2008)
Capacity
229834 193500 137330 60930 7200 26000
(Tonnes)
Production
qty 346430 150390 76650 47796 6290 6452.92
(Tonnes)
Purchase
qty 52103 0 260 0 9189 0
(Tonnes)
Sales qty
398901 2077012 73380 46437 1,5382 7096.85
(Tonnes)
Sales value
3040.8 823.62 566.62 502.3 144.68 130.06
(Rs. Crore)
Source: CI4IE report
The above table shows information about 6 major players in soap industry. The
table gives data regarding installed capacity, production quantity, purchase quantity, sales
quantity and the sales value. It is in the decreasing order of relative sales value. Hindustan
Unilever is the market leader with a sales value of Rs.3040.8 crore (for year 2007) and a
sales quantity of 398.90 kilo tonnes. Karnataka soaps and detergents Ltd has a sales value
of Rs. 130.06 crore as on March 2008(annual) and a sales quantity of 7.10 kilo tonnes.

154
//'
Chapter 4. Company Profile

Chart 4.7: Relative Capacities of Soap Manufacturers

Relative Capacity (Percentage)

Hindustan Unilever Ltd. (Dec 2007)

Procter & Gamble Home Products Ltd. (June 2008)

Godrej Consumer Products Ltd. (Mar 2008)

Wipro Ltd. (Mar 2008)

Henkel Spic Ltd (Dec 2007 )

Kamataka Soaps & Detergents Ltd. (Mar 2008 )

1% 4%

21%

30%

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Chapter 4. Company Profile

Chart 4.8 : Relative Annual Sales values of Soap Manufacturers

Relative Annual Sales value (Rs.Crores)

I Hindustan Unilever Ltd. (Dec 2007)
I Procter & Gamble Home Products Ltd. (June 2008)
I Godrej Consumer Products Ltd. (Mar 2008)
I Wipro Ltd. (Mar 2008)
I Henkel Spic Ltd (Dec 2007 )
Kamataka Soaps & Detergents Ltd. (Mar 2008 )

3% 2%
10%

58%

^
Chapter 4. Company Profile

The company has bagged different awards for excellence in cost management and
export effort from governmental and other recognized institution. They have been shown
below.

Chart 4.8 : ICWAI National Award for EXCELLENCE IN COST MANAGMENT

. cost and Works Acco,..

\^' W \
^^ M \
iCWAI NATIONAL AWARD FOR
EXCELLENCE IN COST MANAGEMENT 2007
Karnataka Soaps & Detergents Ltd.
First Award
Category: Public Sector-Manufacturing-Organisation
(Turnover less than Rs.1000 Crore)

CHANDRA WADHWA
President, ICWAI

"!^
Chapter 4. Company Profile

Chart 4.9 : For the outstanding export performance of Cosmetics & Toiletries

158
Chapter 4. Company Profile

References:

Journals & Magazines:

1 Annual reports ofKS&DL2004

2 Annual reports of KS&DL 2005
3 Annual reports of KS &DL 2006
4 Annual reports of KS &DL 2007
5 Annual reports of KS &DL 2008
6 Annual reports ofKS&DL2009
7 Company Brochures

Websites:
1. http://dagpaknowledge.com/en
2. http://ebscohost.com
3. http://www.chillibreeze.coni/articles_various/frn.cg-in-india.asp
4. http ://www. cleaning 101. com/cleaning/history/
5. http ://www. cleaning 101. com/cleaning/manufact/
6. http://www.flonnet.com/fl2221/stories/20051021009612700.htm
7. http://www.godrejcp.com/aboutus/index.php
8. http://www.inecto.co.za/
9. http://www.keyline-brands.co.uk
10. http://www.livemint.com/2007/08/09000855/Hindustan-Unilever8217s-mar.html
11. http://www.nirma.co.in/soaps.htm
12. http://www.thehindubusinessline.com/2008/06/03/stories/2008060352382000.htm
13. http://www.unilever.coni/br/co_ga.html
14. www.browneyedsheep.com/householdproducts.htm
15. www.colgate.com : Colgate Palmolive
16. www.cussons.com :Paterson Zochonis
17. www.godrejcp.com
18.www.hemonline.com
19. www.hll.com : Hindustan Lever
20. www.lshtm.ac.uk
21.www.mind-advertising.com/us/colgateus.htm information on Colgate
brands/advertising spend

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Chapter 4. Company Profile

22. www.mysoresandal.co.in
23. www.naukrihub.com
24. www.prowess.com (for CMIE reports)
25. www.pg.com : Procter & Gamble
26. www.sdahq.org/cleaning/history/soapshistory history of soap making
27. www.the-week.com/97octl9/bizl .htm : the rural market in India, and Nirma
28. www.unilever.com : Unilever
29. www.unilever.com/br/co_ga.html: Unilever's global advertising policy
30. www.wsp.org/english/activities_handwashing_more.html Internal sources like
catalogues, brochures of KS&DL etc.
31. http://www.icmrindia.org/courseware/Marketing Management

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