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PART-A
1. EXECUTIVE SUMMARY
In the year 1918 the company came into existence under the name Government Soap
Factory. Shri.S.G. Shastry a Science student went to UK for higher studies in Oil
Technology. After returning to India, he conducted several experiments. He evolved with a
soap perfume blend using sandalwood oil as the main base to manufacture the toilet soap &
thus the famous ‘Mysore Sandal Soap’ took birth in the year 1918. The factory started
functioning in its new premises from 1st July 1957. From this year onwards till date the
factory has never looked back and it has achieved growth and development in production,
sales and profits.
The initially named Government Soap Factory was renamed as Karnataka Soaps and
Detergents Ltd on 1st October 1980& its trademark is “SHARABHA”, The Company is a
leading sandalwood soap manufacturer in the country, and they have demand for their
products in both domestic as well as international market.
The main objective of the study was to analyze the factors that influence the
changeover of the soaps, to study the organizational function, to study the interdependence of
these departments, to analyze the mode of awareness of Mysore sandal soap. The company’s
phrase is “From the house of Mysore Sandal Soap”. Mysore Sandal Soap enjoys the highest
share in the sandal soap segment.
The training has exposed me to many facts of an organization and also helps me to
gain practical knowledge and know about cooperation & relationship of each department in
KS&DL.
PART-B
2. INDUSTRY PROFILE:
Soap is one of the commodities which have become an indispensable part of the life
of modern world. Since it is non durable consumer goods, there is a large market for it. The
whole soap industry is experiencing changes due to innumerable reasons such as government
relations environment and energy problems increase in cost of raw material etc.
The changing technology and ever existing desire by the individual and the
organization to produce a better product at a more economical rate has also acted as catalyst
for the dynamic process of change.
More and more soap manufactures are trying to capture a commanding market share
by introducing new products. The soap industry in India faces a cut throat competition with
multinational companies dominate the market. They are also facing severe threat from
dynamic and enterprising new entrance especially during 1991-92.
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 tonnes p.a.
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 on wards 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
Soap industry faces some problems incase of raw materials. The major ingredients are
soap ash, linear alkyl, benzene& sodium. Tripoli phosphate poses number of serious
problems in terms of availability. The demand supply gap for vegetable oil is 1.5 to 2 lakh
tons & is met through imports. In recent times, caustic soda and soap ashes in the cheaper
varieties of soaps are quite high.
SLOGAN:
3. COMPANY PROFILE:
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.
It is also known as the “FRAGRANT AMBASSADOR OF INDIA”.
The “SHARABHA”
VISSION:
• Keeping pace with globalization, global trends & the State’s policy for using
technology in every aspect of governance.
• Ensuring global presence of Mysore Sandal products while leveraging its unique
strengths to take advantage of the current Tech scenario by intelligent & selective
diversification.
• Secure all assistance & prime status from Government India all Tech alliances.
Further, ensure Karnataka’s pre-eminent status as a proponent & provider of Tech
services to the world, nation, & private sectors.
MISSION:
• To serve the National economy.
• To attain self-reliance.
• To promote purity & quality products
• To maintain the Brand loyalty of its customers.
• To build upon the reputation of Mysore sandal soap based on pure sandal oil.
OBJECTIVES OF KSDL:
• To serve the National economy.
• To attain self-reliance.
• To promote purity & quality products
• To maintain the Brand loyalty of its customers.
• To build upon the reputation of Mysore sandal soap based on pure sandal oil.
1. Is committed to preserve the natural environment in the production of its quality products
to the satisfaction of its customer.
2. Will comply with all statutory & regulatory requirements pertaining to environment
stipulated by both state & central authorities.
3. Would invite & implement action to reduce all impacts that are likely to be a source of
concern to the environment.
4. Would strive & set an example in protection & promotion of an eco-friendly
environment.
5. Is committed to prevent & minimize risks to the environment & conserve natural
resources by waging a war against wastes.
6. Will motivate every employee of the company in preserving the environment by
providing appropriate training.
7. Will make available a copy of environment policy, under environment Management
system on a written request to its manager (Environment & Policy)
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.
AGARBATHIS:
1. Mysore Sandal premium 8. Mysore sandal
2. Mysore Rose 9. Nagachampa
3. Suprabath 10.Mysore Jasmine
4. Parijata 11.Bodhisattva
5. Venkateshwar 12.Durga
6. Ayyappa 13.Alif Laila
7. Chandhana
SANDALWOOD OIL:
In 5ml, 10ml,20ml, 100ml,500ml,2kg,5kg,20kg,and 25kg packing.
POWDERS:
1. Mysore Sandal Talk: Cooling & Healing, Fragrant freshness, Net. Wt 20gm, 60gm,
300gm and 1kg.
2. Mysore Sandal Baby Powder: Tender loving care for baby…& Mummy. Net wt 100-
400gms.
KS&DL has a long tradition of maintaining the highest quality standards, right from the
selection of raw materials to processing and packaging of the end product. The reason why its
products are much in demand globally & are exported regularly to UAE, Bahrain, /Saudi
Arabia, Kuwait, Qatar, South East Asian countries as well as North America & South
America. The sandalwood oil, of course, is much sought after by the leading perfume houses
of the world. All the toilet soaps of KS&DL are made from oils & fats of vegetable origin &
totally free from animal fat.
PRESENT STATUS:
1. The company has entered into shampoo, dish wash, detergent bar & room refresher.
2. The company is striving to develop new perfumes for soaps detergents, agarbathies &
shampoo.
3. The company wants to improve the existing products in terms of quality.
Soaps Noodles
Container Mixer
Simplex Plodder
It becomes NOODLES
Milling
Duplex plodder
Cutting Machine
Stamping Machine
Wrapping machine
PART – C
4.McKinsey’s 7S Framework:
I. BASIS OF DEPARTMENTATION
KS&DL is a manufacturing concern of moderately large size. We can see here
functions wise departmentation. It facilitates effective utilization of manpower and resources
and it is a simple, economical and reasonable organization pattern.
KS&DL is Functional type of organization. Under this type of organization men with
special abilities in a specialized function are employed. The hierarchy is represented as
follows.
ORGANISATION CHART:
MANAGING DIRECTOR
AGM CS AGM
(R & D) (HRD)
MGR MGR
(MD’s Office) (MIS)
2. PRODUCTION DEPARTMENT:
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.
KSDL’s 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.
Detergent Plant:
It has installed capacity of 10,000 tones per annum. To produce spray dried, powder & a
syntax plant for detergent cakes & bars. It produces industrial detergent which is used in the
formulation of wettable pesticide powders for crop protectio
3. MARKETING DEPARTMENT:
The company main products are soaps & detergents which are sold in different parts
of India. There are depots at various places of the country which are controlled by seven
branches. The role of each branch is to ensure that sales activities coming under their control.
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
Channel of Distribution:
KSDL manufactures their products i.e. soaps & detergents. After this sent to various
distribution points through agents. The stockiest sells to various retailers hence it reaches to
the consumers.
Manufacture (KSDL)
Agents
Stockiest (Wholesalers)
Retailer
Consumers
As the company markets their products, it ensures that there is proper description of
their product & its distinct features. So that the consumer can be position to understand its
components.
Exports:
KSDL export their products to different parts of world they are:
Australia Italy Srilanka
Berlin Kenya USA
Canada Malaysia Japan
Czechoslovakia Saudi Arabia UK
France Singapore Taiwan
Germany Africa Holland
1. Marketing Mix : it is the policy adopted by the manufactures to get success in the
field of marketing
2. Product Policy: It includes both the turns of development & improvement produced
or existing products. This all totally done by KSDL both marketing & R & D
department.
3. Distribution Policy: The manufactured product of KSDL is supplier to the factory
depots. There are various depots in various states & stored there.
4. Sales & Promotion: the drawback is poor advertising & sales promotion.
5. Packing: Uses different materials for different products, card board boxes synthetic
covers.
6. Market Share: The KSDL production strategy is more expensive when compared to
other product. At present co, holding market share of 18% in south India & 8%
throughout India basis for premium soaps.
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 projects.
• Decision making regarding fixing of cash account.
• Obtaining trade credit.
• Profit Maximization.
• Wealth Maximization.
• Preparation of cash budgets.
• Systematic approach to working capital management.
• Pricing of raw materials & valuation of stores.
• To protect financial interest of the company.
AUDIT DEPARTMENT:
KSDL audit wing is headed by interval auditor. Auditing is vital for the company as
it facilitates verifying of all the books of a/c by trial balance, it also comply with
requirements for central excise & income tax purposes.
After the Auditor’s monitor everything they give report which is helpful to the
company.
COSTING:
When a company does costing it ensures proper fixation of selling price of the
product, cost control it also help in taking decision.
KSDL use process costing as the production mechanism is systematic it involves
addition of a lot of ingredient in the manufacturing.
5. 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
Objectives:
When doing Research they have a target which they get benefits & it enables the
company to forecast the future.
Aim:
1. Product process development.
2. Product process improvement.
3. Cost reduction
4. Alternative raw materials
5. Slow moving & non moving inventory reduction
6. Technical advice to the management.
Quality plays a very important role in KSDL majority of the products are consumer
goods. So it must satisfy the consumer expectation.
i. KSDL as 2QC division
ii. Raw material QC division
iii. Production QC division
Objective:
1. To maintain customer satisfaction at optimum level.
2. To retain perfumery content throughout it uses.
7. STORES DEPARTMENT:
KS&DL has well- managed stores department for each of the three divisions viz, soaps,
detergent & fatty acid division in the factory, there are separate miscellaneous stores
department for raw material, finished goods and tools.
Objectives;
• Assuring the availability of raw material at right quantity.
• Maintenance of adequate, but not excessive storage of materials at all time.
• Maintenance of economical and uninterrupted flow of production activities and
finally to ensure minimum blockage.
• Achieving maximum efficiency in production and sales with least investment in
inventory.
Types of stores:
• Perfumery stores
• Chemical stores.
• Packing material stores.
• Oil & Fats Stores.
• Finished goods stores.
8. STORAGE DEPARTMENT:
In KSDL there are about 8 stores namely:
1. Packing Materials
2. Engineering Goods
3. Perfumery Stores
4. Oil & Fatrs 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.
9. WELFARE DEPARTMENT:
KSDL welfare department can be classified into 3 sections namely,
1. Statutory
2. voluntary
3. Non statutory
a) Statutory :
KSDL welfare association is based on employees contributions, interest carved.
• Canteen facility
• First aid
• Provident Fund
b) Voluntary benefit :
• workers education class conducted by the central board
• Inspection of fittings
• Dust nuisance
• Toxic gas nuisance
c) Mutual :
• Employees get 2 pair of uniform & a pair of shoes for every year.
• Cultural Recreations, Leave facilities.
• Employees Co-operative society which give loan on credit
• Employees house building society
• Reduction of overload
• Cost Reduction
• Greater Safety of equipment & workers
• Delivery schedule is maintained.
This department contributes also working progress of the company.
DIVISION OF KSDL:
3 manufacturing units all over India
1. KS & DL Bangalore Division
2. Mysore Division
3. D.P.G Shimoga.
4.2 SKILLS:
The term “skills” includes those characteristics, which people use to describe a
company. Organization have strengths in a number of area but their key strengths are
dominant skills are few. These are developed over a period of time of the result of the
interaction of a number of factors performing certain tasks successfully over a period of time,
the kind of people in the organization, the top management style, structure, the management
systems, the external environmental influence etc. Hence when organization makes a
strategic shift it becomes necessary to consciously build new skills.
Employee’s skills in an organization will be unique, this may be due to their
experience in the place of work, and the similarity may also due to influence of the similar
culture.
However every person according to his traits possesses his own talents and special
characters. This cannot be generalized skill among them.
The employees of KS&DL have different skill, which are relevant for their work. As
it is common in big organizations, he also controversies between departments which can be
solved by discussions and by conducting some interactive programs.
Decision-making is centralized with the head office. Authority is given to unit in-
charge to take decision in day-to-day minor matters & other urgent matters.
Decision-making depends on the authority & responsibility conferred on each
individual & thus it’s distributed based on designation & position held.
In important matters, meetings are held to seek opinions of top management & various
department manager & the decisions are taken & implemented.
Decision-making is co-ordinate & done with wide consultations of top management of
department manager’s consultation which gives best possible gains.
4.3. STRATEGY:
Strategic planning is about asking questions, more than attempting to answer them.
Strategy formulation entails a search for a different frame of reference. It is the quest for a
new business paradigm. There are two types of paradigms that apply to management, namely
the business and the organizational or managerial paradigms. The business paradigms define
a company’s position in the market place with respect to customers, technology and products.
Strategy is a choice of direction and action; the company adopts to achieve its
objectives in a competitive situation. Any statements on overall of functional strategy that the
company may wish to share are:
Improvement in the existing products.
• Their future plans include launching of new products.
• The cost control exercise is in consolidation.
• Introduction of cost effective substitutes without compromising on quality
• Development of new perfumes, soaps detergents, agarbathis, creams and shampoos.
4.5. SYSTEMS:
A. Accounting System:
Financial statements are prepared under the historical cost convention on an accrual basis
and comply with the accounting standards refer to sec 211 (3c) of the companies Act 1956.
B. Costing System:
Process costing.
4.6. STAFF:
As any employer, KS&DL follow ethical employment standards wherever it
operates with a goal in mind company guarantees.
1. To fulfill its entire legal obligation in terms of employment payments and benefits
practices.
2. Adequate and timely training for every one for the job for which they are employed.
3. Career advancement related to performance and experience.
Benefits provided by KSDL:
Monetary benefits are basic wage allowances, employee’s contribution to PF.
Employee state insurance, bonus, pension gravity etc.
Fringe benefits like housing, food canteen, education to children, medical facility,
holiday pay, recreation etc.
Allowances:
The gross salary includes basic pay and
1. DA
2. City compensatory allowance 5% of basic pay.
3. HRA 20% of B.P who resides in rented house.
4. Conveyance allowance, Rs.595/- per month for workers.
Medical benefit:
Workmen card: Domiciliary Rs, 400/- per month is given along with wages & group
insurance policy for self & family.
Office card: the co, gives actual cost over & above the entitlement for major diseases.
Values:
Values refer to the institutional standards of behavior that strengthen commitment to the
vision, and guide strategy formulation and purposive action. The core values are shaped
around the belief that enterprises exist to serve society. In terms of this belief, profit is a
means rather than an end in itself a compensation to owners of capital linked to the
effectiveness of contribution to society and the essential ingredient to sustain such enlarged
societal contribution.
Thus company has embraced an extended role of trusteeship that reaches beyond the
assets reflected in the balance sheet to encompass societal assets. An unwavering
commitment to integrity, ethical conduct, meritocracy, teamwork and abiding concern for
stakeholders are at the heart of your company’s value system.
• Customer satisfaction
Mission:
• To serve the National economy.
• To attain self-reliance.
• To promote purity & quality products
• To maintain the Brand loyalty of its customers.
• To build upon the reputation of Mysore sandal soap based on pure sandal oil.
Vision:
• Keeping pace with globalization, global trends & the State’s policy for using
technology in every aspect of governance.
• Ensuring global presence of Mysore Sandal products while leveraging its unique
strengths to take advantage of the current Tech scenario by intelligent & selective
diversification.
• Secure all assistance & prime status from Government India all Tech alliances.
PART- D
5. SWOT ANALYSIS:
5.1 STRENGTHS
• 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 modern manufacturing facility with maximum capacity, brand
loyalty of consumers and has 90% of sandal soap market, foreign technology to
suit indigenous condition due to government participation, little financial crisis
with backup from government.
• A very good dealership network, which ensures that the products reach every
loop and corner.
• Two sandalwood oil factories in Shimoga and Mysore, which produce 75% of
world’s sandalwood oil.
5.2 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 oriented cause due to excessive labour force.
• Low turn over resulting in low profits.
• Defective marketing strategy lacks effective advertising and publicity.
• Needs updating with times in terms of plant and machinery.
• R&D is not effective in as much as it has not made any brake through in new products.
• The large proportion of the target area is upper middle class and upper class people, it
has very few offer to lower middle class.
• It has only 8% of the total detergent market share.
• Due to lack of direct sales, debts with many dealers turning bad.
• Unskilled labor coupled with excess labor hampers profitability.
• Product lies under utilized.
5.3 OPPORTUNITIES:
1. The toilet soap and the detergents market is an over expanding industry and a major
company likes KS& DL with its manufacturing expertise can call the shots if it
reaches peak manufacturing capacity.
2. Good export market should tap foreign market vigorously.
3. At present it has Good raw material sources to enhance production.
5.4 THREATS:
3. As the company depends on forests for its main raw materials makes the company to
find chemical alternative to sandalwood.
4. To protect the financial interest of the company.
PART- E
7. FINDINGS:
♦It is a company wholly owned by government, so it has to follow the rules made by the
government.
♦The company is under utilizing its capacity.
♦Its production is based on old technology, which leads to more wastes in the production
process.
♦Consumer awareness of its products is very less except for Mysore Sandal soap.
♦Its products are not available easily in district places of states other than Karnataka.
♦There is mismatch in production & sales activity.
♦Recruitment in the company has been stopped since 1988 due to some circumstances and
recruitments are taking place only in some department.
8. SUGGESTION:
KSDL has a wide variety of products but people are unaware of many products like
Agarbathi, Detergents, Baby soaps etc., as its marketing is very weak. So it should spend both
money and man power on advertising. They should also improve in building up the strong
marketing strategy in order to improve the distribution channels and could be able to increase
the sales other than the Mysore Sandal Soap.
Thus the R&D should work effectively and achieve the break-through in new products
and can make the company to earn more profits. The management should design Training
and Development programmes and Career Development programmes and identify the skills
or knowledge.
9. BIBLIOGRAPHY:
i) Website;
www.mysoresandal.com
www.msilonline.com