OGANISATIONAL STUDY AT KS&DLKARNATAKA SOAPS & DETERGENTS
LTD
INTRODUCTION
Soaps are cleaning products that have become an essential part in
our daily lives.
Cleaning products play an essential role by safely and effectively
removing dirt, germs and
other contaminants, and thus promote a hygienic lifestyle.
Soaps account for the largest single share of about 10% in the Rs
480 billion FMCG
market. The toilet market is getting saturated at a high
penetration level of 98% and is growing
at a very modest rate. The soap, once only an urban phenomenon, has
now penetrated
practically in all areas including remote rural areas. The
incremental demand flows from
population increase and rise in the usage norm impacted as it is by
a greater concern for
hygiene. Increased sales revenues would also expand from up
gradation of quality or per unit
value.
The market is littered over with several leading national and
global brands and a large
number of small brands which have limited markets. The popular and
premium brands include
Lifebuoy, Lux, Cinthol, Liril, Rexona, Shikakai, Nirma, Dettol etc.
to name a few. The
inventory, however, changes by the quarter-if not by the
month.
The market is expected to grow at rates ranging from under 4% to
around 4.5%. These
are very modest rates considering that the lifestyles not only of
urbanites, but even of well-off
rural folks are changing at a very high pace
CMR Center For Business Studies Page 1
OGANISATIONAL STUDY AT KS&DL
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 and maintaining acceptable products. The soap industry
in India faces a cut throat
competition while multinational companies dominate the market. They
are also facing severe
threat from dynamic and enterprising new entrance especially during
1991-92.
If we look back into the history of soaps & detergents, mankind
knew about soaps nearly
2000 years back i.e. in 70 A.D. when Mr. Elder accidentally
discovered the soap, when roasted
meat over flowed on the glow in ashes. This lump like product was
soap & had foaming &
cleansing character. In 1192 A.D. the first commercial batch of
soaps was made & marketed by
M/s Bristol soap market in London, from there in 1662A.D. the first
patent for making soap
was taken in London. The world consumption of soap in 1884A.D. was
said to be 2 lakh tonnes
p.a.
INDUSTRY OVERVIEW
A report on soap manufacture in India Holla and R.R. Press of Tata
Oil Mills Co. Ltd
notes that soap consumption in India is expected to rise about 9.5%
a year, to total 374,000
metric tons by 1990, 580,000MT by 1995, 11,914,000MT by 2009 and
15,325,000 MT by
2012. This will require expanding manufacturing capacity to
approximately 13,135,000 MT by
2010.
OGANISATIONAL STUDY AT KS&DL
According to the report presented at soaps seminar conducted by the
Oil Technologist’s
Association of India on April 20, 2009, the largest growth
potential is in rural markets. The
main raw native materials used for manufacturing of soaps are rice
bran, hardened rice bran oils
and oils from mowrah, sal, neem, karanja and khakhan. Imported
sources used include coconut
and palm kernel oils. India currently has a total ban on the use of
animal tallow. Also,
groundnut is not permitted for soap manufacturing; it is solely
used for edible purpose.
The soap market in India is well developed and dominated by
multinational companies
and a few large Indian companies. A few major players, high entry
barriers, fairly high rate of
new product launches and high advertisement spending characterize
this segment. H.U.L. is the
market leader in majority of the soap segment. The soap market is
dominated by three major
players- Hindustan Unilever Limited, Nirma and Godrej. Together
they have 88% of the
market share. While H.U.L. has clearly been the market leader over
the last many decades,
Nirma has grown in past 15 years to command one-fifth of the
market. The remaining market is
held by Godrej, Palmolive, Wipro, Dabur, Reckitt & Coleman and
Medimix etc
Since the market power is concentrated with a few major players,
soap market is a
perfect example of an oligopolistic market structure.
The penetration level for soaps is almost saturated in urban market
and the rural market
is not lagging behind. Indian markets are looking at ways to push
higher usage. That’s why the
players are trying every trick in book to boost per capita
consumption as that is the only way to
grow.
OGANISATIONAL STUDY AT KS&DL
Soap manufacturing was started in North America. Some American
companies with
well known names were started 200 years ago. During middle age soap
was made at various
places in Italy, France, England & other countries. France
became famous & many small
factories were established there.
In India the first soap industry was established by North West soap
company in1897 at
Meerat following the Swadeshi movement. From 1905 onwards few more
factories were setup.
They are,
• Godrej soap at Bombay
• 1930 lever brothers company
PROBLEMS OF SOAP INDUSTRY:
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 lakhs tons & is met
through imports. In recent times, caustic soda and soap ashes in
the cheaper varieties of soaps
are quite high.
OGANISATIONAL STUDY AT KS&DL
INTRODUCTION TO SOAP INDUSTRY:-
Soap is one of the commodities, which has become an indispensable
part of life of the
modern fantasy world. Since it is non-durable consumer goods, there
is a large market for it.
The whole soap industry is experiencing changes due to innumerable
reasons such as
Government relations, environment, toxicological allergy problems,
increase in cost of raw
material etc.
Following Swadeshi movement in 1905, few factories were set up and
they were:
1. Mysore Government Soap factory at Bangalore.
2. Godrej Soaps at Bombay.
The changing technology and even existing desire by the individuals
and the
organization to produce a better product at a mere 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 and maintaining acceptable
products. The soap
industry in India faces a cutthroat Competition, while
multinational companies dominate the
market.
THE INDIAN SOAP INDUSTRY SCENARIO: -
The Indian soap industry has been dominated by handful of companies
such as
1. Hindustan Levers Limited.
3. Godrej Soaps Private Limited.
4. Recent entrants include - Colgate Palmolive Ltd.,
- Proctor & Gamble Ltd.,
- Nirma Soap Works,
- ITC Ltd
The Indian Soaps industry continued to flourish very well until
1967-68, but began to
stagnate. Soon it started to recover and experienced a short
upswing in 1974. This increase in
demand can be attributed to:-
1. Growth of population.
OGANISATIONAL STUDY AT KS&DL
2. Income and consumption increase.
3. Increase in urbanization
4. Growth in degree of personal hygiene.
Soap manufacturers are Classified as, Organized and unorganized
sector. KSDL is under
organized Sector.
PRESENT STATUS: -
MARKET SCENARIO
India is the ideal market for cleansing products. The country’s per
capita consumption
of detergent powders and bars stands at 1.6 Kg and soap at 543gms.
Hindustan Lever, which
heralds over the cleaning business, sells in all over the cleaning
business.
PROBLEMS OF SOAPS & DETERGENTS INDUSTRY:
Industry faces some problems due to increase in the cost of raw
materials. The major
ingredients like soda ash, linear alkyl benzene and Sodium Tripoli
phosphate poses number of
serious problems in terms of availability. The demand and supply
gap of vegetables oil is 1.5
to 2 Lakhs tons and is met through imports.
HISTORY:-
India is a rich land of forest; ivory, silk, sandal; precious gems
are magical charms of
centuries. The most enchanting perfumes of the world got their
exotic spell with a twist of
sandal. The world’s richest sandalwood resource is from one
isolated stretch of forests land in
South India that is Karnataka.
The origin of sandalwood and its oil in Karnataka, which is used in
making of Mysore
sandal soaps, is well known as Fragrant Ambassador of India &
Sandalwood oil is infact
known as “Liquid Gold”.
By the Inspiration of His Highness Maharaja of Mysore late
Jayachamarajendra
Wodeyar, the trading of sandalwood logs started which was exported
to Europe and New
destinations, but with commencement of First world War India faced
Severe Crisis on the
business of sandalwood.
OGANISATIONAL STUDY AT KS&DL
This situation gave rise to start of an industry, which produces
value added products
i.e., of Sandalwood oil. His Highness Maharaja of Mysore created
this situation as an
opportunity by sowing the seed of the Government Sandalwood Oil
Factory, which is the
present KS&DL. The project was shaped with the engineering
skills and expertise of the top
level. Late Sir M. Visvesvaraya, the great Engineer who was the man
behind the project.
Today’s famous Mysore sandal soaps credit goes to late Sri Sosale
Garalapuri Shastri
who incorporated the process of soap making using Sandalwood oil.
He was an eminent
scientist in the field working at the Tata Institute, Bangalore. He
was sent to England to master
the fine aspects of soap manufacturing.
The Maharaja of Mysore & Diwan Sir.M.Visvesvaraya established
the Government
Soap factory during the year 1918. The factory was started as a
very small unit near
K.R.Circle, Bangalore with the capacity of 100 tons P.A. In
November 1918 the Mysore
sandal soap was put into the market after sincere effort and
experiments were undertaken to
evolve a soap perfume blend using sandalwood oil as the main base
to manufacture toilet soap.
The factory shifted its operation to Rajajinagar industrial area,
Bangalore in July 1957, where
the present plant is located. The plant occupies an area of 39
acres (covering Soaps, Detergents
and Fatty Acid divisions), on the Bangalore – Pune Highway, easily
accessible by transport
services and communication. Another sandal wood oil division was
established during the year
1944 at Shimoga, which stopped its operations in the year 2000 for
want of Natural
Sandalwood.
This factory started at a moderate scale in year 1916. The first
product was washing
soap in addition to the toilet soap in the year 1918. The toilet
soap of the company was made
up of sandal wood oil.
In 1950 Government decided to expand the factory in two stages. The
first stage of
expansion was done to increase the output to 700 tons per year and
was completed in the year
1952 in the old premises.
CMR Center For Business Studies Page 7
OGANISATIONAL STUDY AT KS&DL
The next stage of expansion was implemented in 1954 to meet growing
demand for Mysore
sandal soap and for this purpose Government of India sanctioned
license to manufacture 1500
tons of Soaps and 75 tons of glycerine per year. The expansion
project worth of Rs.21 lakhs
includes the shifting of the factory to a newly laid industrial
suburban of Bangalore.
The factory started functioning in this new premise [i.e., present
one] from 1st July
1957. From this year onwards till date the factory had never looked
back, it has achieved
growth and development in production scales and profits.
The industry has 2 more divisions one at Shimoga and another at
Mysore where sandal
wood oil is extracted. The Mysore division started functioning from
1917 and only during
1984 manufacturing of perfumed and premiere quality Agarbathies at
was started. Right from
the first log of sandalwood that rolled into the boiler room in
1916, the company has been
single – minded pursuit of excellence. The project took shape with
the engineering skills and
expertise of top-level team under the leadership of Sir.
M.Visvesvaraya, Prof. Watson and
Dr.Sudbrough. Like this soap factory was started as a small unit
and now it has grown up to a
giant size.
RENAMING: -
On 1st October 1980, the Government Soap Factory was renamed as
“Karnataka Soaps
and Detergent Limited” The Company was registered as a public
limited company. Today
Company produces varieties of products in the toilet soaps,
detergent, Agarbathies and
Cosmetics.
To attain self – reliance
To promote and uphold its image as symbol of traditional
products
CMR Center For Business Studies Page 8
OGANISATIONAL STUDY AT KS&DL
To promote purity and quality products and thus enhance age old –
charm of
Sandalwood Oil
To build upon the reputation of Mysore Sandal soap based on pure
sandal oil.
To maintain the brand loyalty of its customer.
To supply the products mentioned above at most reasonable and
competitive rate.
VISION STATEMENT:-
Keeping pace with globalization, global trends and 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 technology
scenario by
intelligent and selective diversification.
Secure all assistance and prime status from Government of India,
all technology
alliances.
Making all out efforts to achieve reasonable profits.
Most importantly to earn the invaluable foreign exchange, both to
the state and
to the country.
• To attain self-reliance.
• To maintain the Brand loyalty of its customers.
• To build upon the reputation of Mysore sandal soap based on pure
sandal oil.
COMPETITORS OF KS&DL PRODUCTS AND SERVICES:-
KS&DL is facing cut-throat competition in national and
international market. Some of its
main competitors are:-
CMR Center For Business Studies Page 9
OGANISATIONAL STUDY AT KS&DL
M/S. Proctor& Gamble
M/S. Jyothi Laboratories
The “ SHARABHA ”
The carving on the cover is the sharabha, the trademark of KS &
DL.
The sharabha is a mythological creation from the “puranas” which
has a body of a lion
and head of elephant, which embodies the combined virtues of wisdom
and strength. It is
adopted as an official emblem of KS& DL to symbolize the
philosophy of the company.
The sharabha thus symbolized a power that removes imperfections and
impurities. The
maharaja of Mysore as his official emblem adopted it. And soon took
its pride of place as the
symbol of the Government Soap Factory of quality that reflects a
standard of excellence of
Karnataka Soaps and Detergent Limited.
SLOGAN:-
“NATURAL PRODUCTS WITH EXOTIC FRAGRANCES”
KS & DL has a long tradition of maintaining the highest quality
standard, right from the
selection of raw materials to processing and packing of the
end product. The reasons why its products are much in demand
globally and are exported
regularly to UAE, Beharen, Saudi-Arabia, Kuwait, Qatar, South
America. The entire toilet
CMR Center For Business Studies Page 10
OGANISATIONAL STUDY AT KS&DL
soaps of KS & DL are made from raw materials of vegetable
origin and are totally free from
animal fats.
Seek purchase of goods and services from environment responsible
suppliers.
Communicate its environment policy and best practices to all its
employees’
implications.
Set targets and monitor progress through internal and external
audits.
Reuse and recycle materials wherever possible and minimize energy
consumption and
waste.
1918 – Government Soap Factory was started by Maharaja of
Mysore
and the Mysore Sandal Soap was introduced into the market
for the first time.
1950 - The factory output rose to 500 M.Tons with the
following
modifications.
2. Installing new boiler soap building plant and drying
chamber.
1974 – Mysore sales international limited was appointed as the
sole
selling agent, for marketing its products.
1975 – Rs.4 Crores synthetic detergent plant was installed
based on Italian technology by Ballestra SPA.
1980 - On 1st October 1980 the Government Soap Factory was
converted into a public sector enterprise and renamed as
CMR Center For Business Studies Page 11
OGANISATIONAL STUDY AT KS&DL
“Karnataka Soaps & Detergents Limited”.
1984 – Manufacturing of premium quality of Agarbathies at
Mysore
division.
1985 – Production capacity was raised to 26,000 M.Tons Per
Annum.
A large variety of toilet soaps at attractive shapes, colors
and
fragrances introduced to meet the varieties & tastes of
consumers.
1992 – The company was registered with the Board for
Industries
and Financial Reconstruction (BIFR), New Delhi in December
for rehabilitation, as the company suffered losses
continuously since 1980 at its net worth fully eroded.
1996 – The BIFR approved the rehabilitation scheme in September
&
the Company stated making Profits.
1999 – ISO-9002 Certificate for quality assurance in
production,
installation and Servicing.
management system.
2003 – The entire carried forward loss of Rs.98 Crores wiped
out
and in May BIFR, declared the company to be out of its
Purview. The Company is making profit continuously,
It is only State Public Sector unit that has come out of
BIFR.
2004 – The ISO-9002 was upgraded to ISO-9001-2004, Quality
Systems.
PRESENT STATUS OF THE COMPANY
The company is mainly dependent on southern market. The product
availability in retail
outlets particularly for Mysore sandal soap is almost comparable to
any other similar industries
products in the premium segment in the south. Whereas in other
parts like Eastern & Northern
markets penetration of KSDL product is relatively poor, which
depends on the company’s
distribution structure, stockiest and field personnel
strength.
CMR Center For Business Studies Page 12
OGANISATIONAL STUDY AT KS&DL
With increased trust on distribution, the company does not foresee
any problems to
achieve the projected sales through the redistribution
package.
Further, the policy of Indian Government also sees the public
sector enterprises enter
the industry in a large way there by making the products available
to the consumers at
reasonable prices.
Being located in the centre of southern part of India the
Government Soap Factory
claims preferential treatment for expansion programmed in view of
availability of exotic
natural Sandalwood oil.
Karnataka Soaps & Detergents Ltd., Bangalore
Karnataka Soaps & Detergents Ltd. (K.S.D.L.) Bangalore,
the
biggest Sandalwood Soap Industry in Asia, located at the
Northern side of Bangalore in the large Industrial Area
called
Yeshwanthpur.
TCI gives us door-to-door delivery. For all the past twenty
five
years or more TCI has ensured safe passage of our goods in
India." Said Mr. Shanbagh.
It is the mutual trust and respect and appreciation for each others
that keep the relationship
going, year after year.
AN ISO-9002 COMPANY: -
KS & DL with a tradition of excellence of over eight decades is
committed to customer
delight, through total quality management and continuous
improvement through the
involvement of all employees. KS&DL has got ISO 9002
certificate.
To improve the quality management system and to facilitate TQM in
the process of soap and
detergent, the management took decision to obtain ISO-9002 by end
of March 1999.
CMR Center For Business Studies Page 13
OGANISATIONAL STUDY AT KS&DL
Accordingly action plan was drawn and a committee was set up for
the purpose during October
1998 with a mission statement.
The company gives initial training including conducting employee’s
awareness programme,
document quality manual and quality system procurement.
In this direction company obtained the guidance from Consultancies,
Bangalore and
Bureau of Indian Standards, Bangalore. Accordingly, company
standards registered for ISO
9002 by the end of March to the Bureau of Indian Standards.
Obtained the certificate by the
end of March 1999 itself.
This is to project in the national and international market and
also to improve quality of
products offered to the consumers with the assurance of quality in
the message.
The Company got itself upgraded to ISO-9001-2004, Quality Systems
in the year
2004-05.
ISO-14001:-
The company is located in the heart of the Bangalore city. The
management of the
company took a decision to get the ISO-14001 and become model to
other public sector for the
techniques used and also to other Government units to spread the
message of maintenance of
environment.
ISO-14001 and ISO-9001 will facilitate to improve the corporate
brands in the global market
and it will help the company to improve the profits, year after
year on long-term basis. The
environment management system adopted in the company through this
motive as follows:
Conservation of energy
Conservation of Surrounding
Conservation of resources.
Equipped with latest technology and backed by full-fledged quality
control and R&D
support, KS&DL is marching confidentially ahead in the new
millennium. The Company is
developing new products to meet the changing preferences of its
customers.
CMR Center For Business Studies Page 14
OGANISATIONAL STUDY AT KS&DL
THE BIRTH OF A LEGEND:-
The early year of the 20th century witnessed the birth of a magical
formula, created from
the finest and purest sandalwood oil, better known as “liquid
gold”, distilled exclusively at our
divisions in Karnataka-Mysore. A fragrant gift to the world from
the first Government Soap
Factory of India. Nurtured by the Maharaja of Mysore, enriched with
all the goodness of
natural sandal wood oil, this unique soap captured hearts and
markets at home, as well as right
across the globe creating a fragrant legacy for the state of
Karnataka. Karnataka Soaps and
Detergents limited (KS&DL) is the true inheritor of this golden
legacy of India. Continuing the
tradition of excellence for over eight decades, using only the best
Grade sandal wood oil in its
product range, KS&DL today in one of the largest producers of
Sandal wood oil and sandal
wood soaps in the world.
PRODUCT MANUFACTURED BY KS&DL:-
TOILET SOAPS
NAME OF THE PRODUCT UNITS OF GRAMS Mysore Sandal Soap 75, 125
Mysore Sandal Classic Soap 75 Mysore Sandal Gold Soap 75, 125
Mysore Sandal Baby Soap 75 Mysore Special Sandal Soap 75 Mysore
Rose Soap 100 Mysore Sandal Herbal Care Soap 100, 125 Mysore
Jasmine Soap 100 Wave Soap 100 Mysore lavender Soap 150 Mysore
Sandal bath tablet 150 Mysore Sandal classic bath tablet 150 Mysore
Jasmine bath tablet 150 Mysore Special Sandal tablet 150 Mysore
Sandal rose tablet 150 Mysore Sandal Guest tablet 17
GIFT RANGE SBT SJR 06 IN 01 GOLD SIXER
CMR Center For Business Studies Page 15
OGANISATIONAL STUDY AT KS&DL
DETERGENTS
NAME OF THE PRODUCT UNITS IN GRAMS
Mysore detergent powder 1000 Mysore detergent powder 500 Mysore
detergent Cake 125 Mysore detergent cake 250
TALCUM POWDERS
NAME OF THE PRODUCT UNITS IN GRAMS Mysore Sandal Talc 20, 50, 100,
300 Mysore Sandal Baby Talc 100, 200, 400
AGARBATHIES
Mysore Sandal Premium Mysore Sandal Regular Mysore Rose Nagachampa
Suprabhatha Mysore Jasmine Parijata Sir M.V.100 Bodhisattva
Venkateshwara Durga Ayyappa Alif Laila Meditation
CMR Center For Business Studies Page 16
OGANISATIONAL STUDY AT KS&DL
PRODUCT PROFILE-
KS&DL is the true inheritor of golden legacy of India.
Continuing the tradition of
excellence for over eight decades, using only the best East Indian
grade Sandalwood oil &
Sandalwood soaps in the world. The products produced at KS&DL
are the Soaps,
Detergents, Agarbathies and Sandalwood oil.
PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL
SOAP
CMR Center For Business Studies Page 17
OGANISATIONAL STUDY AT KS&DL
d. Three-In-One Gift Pack –(SJR) 3Tabs (150gm Each)
e. Mysore Sandal Gold Soap (125gm)
f. Mysore Rose Soap (100gm)
g. Six-In-One Gift Pack- 6Tabs (150gm Each)
h. Mysore Sandal Gold sixer 6 Tabs (125gm Each)
CMR Center For Business Studies Page 18
OGANISATIONAL STUDY AT KS&DL
i. Mysore Sandal Soap Bath Tablet Trio 3nos. (150gm Each)
j. Mysore Sandal Classic Soap(75gm) )
k. Jasmine Bath Soap (75gm)
l. Mysore Jasmine Soap (100gm)
m. Mysore Sandal Herbal Care
CMR Center For Business Studies Page 19
OGANISATIONAL STUDY AT KS&DL
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:
2. Mysore Rose 9.Nagachampa
3. Suprabath 10.Mysore Jasmine
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.
OGANISATIONAL STUDY AT KS&DL
AREA OF OPERATION:
GLOBAL FAVOURITES FOR THEIR NATURAL GOODNESS:
KS&DL has a long tradition of maintaining the highest quality
standards, right from the
selection of raw materials to processing and packaging of the end
product. The reason why its
products are much in demand globally & are exported 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.
HLL 70%
Godrej 4%
KSDL 11%
Others 5%
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.
INFRASTRUCTURAL FACILITIES:
OGANISATIONAL STUDY AT KS&DL
4. Waiting room
WORK FLOW MODEL:
OGANISATIONAL STUDY AT KS&DL
Wrapping machine
ACHIEVEMENTS/AWARD:
State Export Promotion Advisory Board. “EXPORT AWARD” 1974-75
2. Detergent Plant M/s Chemical Bombay have given 1st price for the
year 1980-81
3. Geographical Indication GI-2005
ISO14001-2004 in the year 2000
5. ICWAI National Award for EXCELLENCE IN COST MANAGMENT
6. For the outstanding export performance of Cosmetics &
Toiletries
FUTURE GROWTH AND PROSPECTUS:
• Introduction of anti-bacteria, herbal transparent soap, made out
of 33 essential oil
based perfume, Aloe Vera, Vitamin-E etc as additive and suitable
for all types of skin
and all seasons.
conditions.
• Introduction of sandalwood powder in 50gms, 100gms to meet the
growing demand for
religious purpose.
• Introduction of new higher powered detergent powder for
institutional sales in bulk
packaging.
• Aggressive advertisement and publicity as part of sales
promotion.
• Reduction in distribution expenses.
• Cost-reduction in all areas.
• Timely introduction and implementation of market driven
decisions.
• Ensuring effective internal control.
KS&DL AT GLANCE:-
Address - Karnataka Soaps and Detergents Limited
Bangalore Pune High Way
Post Box No.5531, Rajajinagar,
Undertaking
Renamed - 1980
Trademark - The trademark is SHARABHA. It is the
Body of lion with the head of an
elephant means blending the
elephant.
Powders, Agarbathies, Cosmetics,
Process know how - The facility is a pioneer in the
Manufactures of various soaps and
technology Imported from Italy.
tons of Soaps & 10,000 M.Tons of
Detergents Per annum
Plants - At Bangalore
OGANISATIONAL STUDY AT KS&DL
STRUCTURE OF ORGANISATION:
A. 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.
B. LEVELS OF ORGANISATION
The organization of KS&DL consists of 4 levels, they are
TOP LEVEL consisting of BOD’s and M.D
SECOND LEVEL consisting of Directors of Finance and Special
officers
THIRD LEVEL consisting of senior managers, deputy managers and
officers.
FOURTH LEVEL consisting of clerks, Assistants and Attendees.
C .ORGANIZATION CHART OF KS&DL
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.
CMR Center For Business Studies Page 26
OGANISATIONAL STUDY AT KS&DL
CMR Center For Business Studies Page 27
OGANISATIONAL STUDY AT KS&DL
FUNCTIONAL DEPARTMENTS OF KS&DL
Human Resources Department
OGANISATIONAL STUDY AT KS&DL
HUMAN RESOURCE DEPARTMENT:
OGANISATIONAL STUDY AT KS&DL
ORGANISATION STRUCTURE OF
MANAGING DIRECTOR
ASST.GEN.MGR [HRD]
MGR [HRD]
OFFICER [HRD]
SENIOR ASSTS
JR. OFFICER
OGANISATIONAL STUDY AT KS&DL
02 MD Managing Director 03 Mgr [HRD] Manager [HRD] 04 Mgr Assistant
Manager [Canteen] 05 ASST MGR Labour Welfare Officer 06 JR OFFICER
Junior officer 07 VMO Visiting Medical Officer 08 Officer [HRD]
Junior Officer [HRD] 09 JR.OFFICER Senior Assistants 10 SR.ASSTS
Attainder 11 JR ASST Junior assistant 12 Helpers Helpers
Luther Gulick highlighted “POSDCORB” which stands for planning
organizing, staffing,
Directing, Coordinating, Reporting & Budgeting is the part of
personnel management.
Personnel management performs lot of function in KSDL.
1. Recruitment
2. Implementing.
3. Training
5. Disciplinary matters
6. Performance appraisal
1) Training and Development
2) Promotion and Transfer
4) Performance Appraisal
CMR Center For Business Studies Page 31
OGANISATIONAL STUDY AT KS&DL
6) Disciplinary Action and
11) Verification of cash certificate, character &
attitude.
12) Compilation of periodical report to various statutory
authorities.
13) Maintain of SC/ST roster.
14) Maintenance of educational, wages &experience profile of
the
employees.
16) Study on absenteeism & suggesting measure.
17) Coordinating dispute cases before conciliation labour court and
other court.
18) Grievance handling
Cordial Relationship with trade unions:
KSDL is trying its level best to ensure healthy & cordial
relation with trade unions in
all matters regarding industrial disputes & employee
satisfaction.
Personnel management is act as a mother as it ensures people are
treated perfectly well &
widening the scope of the employees.
MAN POWER DETAILS :
GROUP Bangalore SOD
Godown
Shimoga
Total
Executives 85 7 56 2 150 Supervisors 49 10 15 - 74
Workers 548 30 39 16 633
CMR Center For Business Studies Page 32
OGANISATIONAL STUDY AT KS&DL
Total 682 47 110 18 857
MAN POWER DETAILS ACCORDING TO SEX WISE:
MEN WOMEN EMPLOYEES 827 30
FRINGE BENEFITS PAYABLE TO THE UNIONIZED CADRES EMPLOYEES
1. Shift Allowance: There are three shifts and one general shift.
The office hour is
from 9.30am – 5.30pm. The shift timings are as follows:
First Shift 6.00am to 2.00pm Second Shift 2.00pm to 10.00pm Third
Shift 10.00pm to 6.00am
General Shift 7.30am to 3.30pm
The lunch time is from 12.00pm to 12.30pm. Every Sunday is rest day
for the
employees. No allowance is paid to the first shift workers; a sum
of Rs.15 and Rs.25 per day is
paid to workers for second and third shift respectively.
2. Washing Allowance: The company provides two sets of uniform once
in a year. For
this a washing allowance of Rs.50 per month is paid to every
worker.
3. Leave: The company provides:
• Earned Leave (EL): Workman who wishes to avail privilege leave
shall apply at
least 3 days in advance to General Managers. This leave can be
accumulated and
encased. 18 days EL is credited to an employee. It can be encased
and for this purpose
the basic+ DA to the employee is calculated for 26 days but paid
for 15 days in a
year.
• Casual Leave (CL): The leave is to meet unforeseen circumstances
and is
granted for 3 days at a time and 7 days CL is given to an employee
per year.
CMR Center For Business Studies Page 33
OGANISATIONAL STUDY AT KS&DL
• Sick Leave (SL): Workman who avails sick leave exceeding 3 days
at a time
should produce medical certificate from Doctor. 15 days of sick
leave is given for an
employee per year and it can be encashed.
4. Conveyance Allowance: The conveyance allowance of Rs.680 per
month per
workman is extended.
from Rs.55 to Rs.75.
6.Family Travel Allowance: This allowance is paid at the rate of
Rs.500 per employee
per year who has put a minimum three years of service.
7.Canteen Facilities: All employees are provided with canteen
facility at highly
subsided rate.
8.Annual Bonus: It is agreed to pay the profit sharing bonus in
terms of the provisions
payments of Bonus Act 1965.
9.Attendance Bonus: It is paid equivalent to one day’s basic pay
subject to minimum of
Rs.75 per month.
10. House Building Advance (HBA), House Repair Advance, House
Purchase
Advance: KS&DL has agreed to provide subsidy on the loan amount
secured by the
employee from HDFC or any recognized financial institutions viz.,
co-operative
banks, scheduled banks etc., If the interest payable by the
employee exceeds 7% then
he shall be eligible for interest subsidy to be borne by the
company not exceeding 5%.
11. Festival and National Holidays: Number of paid holidays in the
company is 10
festival holidays and 3 national holidays per calendar year. 2
holidays will be treated
as restricted festival holidays to be selected by the employees
from the list of holidays
to be notified by the company for this purpose.
CMR Center For Business Studies Page 34
OGANISATIONAL STUDY AT KS&DL
12. Death Relief Fund: Rs.30,000 will be paid to the nominee in
case of death of an
employee.
13. Memento to retiring employee: Rs.2,500 will be paid as memento
to retiring
employees.
14. Medical Reimbursement: Benefit to non-ESI employees a sum of
Rs.500 per
month will be paid per employee towards domiciliary treatment. With
regards to
hospitalization treatment, the company has taken mediclaim policy
from Insurance
Company for a sum of Rs.1,50,000 per employee, which includes
spouse and two
children.
15. Postponement of Increment: Postponement of the annual increment
automatically
in respect of the employees who are absent without pay
corresponding to the period
apart from taking disciplinary action as per provisions of standing
orders
Units Postponement of increment by
Absence without pay for more than 30
days less than 40 days.
One month
days less than 70 days.
2 months
days less than 100 days.
3 months
W.E.F. 01.05.2003 TO 30.04.2008
CMR Center For Business Studies Page 35
OGANISATIONAL STUDY AT KS&DL
02 II 5250-110-5690-140-6390-170-7240-200-8240-240-9440 03 III
5690-140-6390-170-7240-200-8240-240-9440-280-10840
04 IV 5970-140-6390-170-7240-200-8240-240-9440-280-10840-
01 Jr. Officer 10000-250-10500-300-12300-350-14400-400-16800-
450-18150 02 Officer
10800-300-12300-350-14400-400-16800-450-19500-
600-25050 04 Manager
18150-450-19500-525-22650-600-26250-675-26925
07 Gen. Manager 24450-600-26250-675-30300-750-31800 08 Director
26250-675-30300-750-34800-850-36500
SALARIES SCALE
GROUP SALARY NO. OF EMPLOYEE A 14050-25050 above 124 B 10800-25025
above 26 C 5690-10240 above 664 D 5140-8240&6250-9440above
43
CMR Center For Business Studies Page 36
OGANISATIONAL STUDY AT KS&DL
THE COMPANY HAS FORMULATED THE FOLLOWING HR POLICIES:
1. Carrier Development Plan and Promotion Rules for Officers.
2. Time Bound Advancement Scheme for Unionized Cadre
employees.
3. Standing orders applicable to Unionized Cadre employees.
4. KS&DL Conduct and Disciplinary Action Rules 1984 for Junior
Officers and above.
5. Medical Attendance Rules.
7. LTC / FTA.
8. Conveyance Allowance.
9. Education Advance.
10. Festival Advance.
PROMOTION
In the company the Promotional Policy has twin objectives because
the
career planning is also included.
• Ensure high level of expertise and professionalism.
• To create certain degree of mobility and job rotation.
The employees below the rank of officers i.e. unionized cadre of
employees are
eligible for the promotion after satisfactory completion of seven
and five years of
service [Time Bound Advancement Promotion]. The promotion is based
on their
grading obtained in the performance done by their
Supervisors.
CMR Center For Business Studies Page 37
OGANISATIONAL STUDY AT KS&DL
The promotional policies for the officers divided into two
categories. They
are Career Development Plan (CDP) and Vacancy Based Selection
(VBS).
CAREER DEVELOPMENT PLAN:
Officers from Grade I to IV come under this plan. The ingredients
of this plan are
given below:
• Selection: Is done through staff selection committee.
• Mode of selection: Is done through interview conducted by Staff
Selection
Committee once in a quarter.
• Final selection: Of the maximum of 100 marks earmarked for
selection 70
marks is allotted to the performance in the present
grade and the remaining 30 marks are allotted to the performance in
the VIVA
during the interview by the Staff Selection Committee. Out of the
weight age, the
individual has to score a minimum of 35 from the 70 performance
marks and 15
from the VIVA marks to get the final selection.
VACANCY BASED SELECTION: Officers from Grade-V and above come under
this plan.
The promotion is effected only when there is a vacancy. The
eligibility criteria is a minimum of
five years in the present grade and due weight age is given to
experience and qualification.
PRODUCTION DEPARTMENT:
Fatty Acid Plant
OGANISATIONAL STUDY AT KS&DL
The basic raw materials, Oil & fats undergo the splitting &
refining process including
hydrogenation at the fatty acid plant.
It is also obtained & used for soap making. The plant has a
capacity to process 10,000mt
of oils 1 fat.
Soap Plant:
The soap plant is one of the largest production plants in the
country wit an installed
capacity of 26,000 tones per annum.
KSDL’s soap plant has its uniqueness been in a position 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 end or the line
collation with the built in facility for continuous fat bleaching
& saponification. The finishing
touches are given or high tech universal wrapping machine. This
high speed auto wrapper has
the capability to handle soaps of virtually & size or
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 protection
Raw Materials:
In soap factory they basically use Fatty acid plum oil, caustic
soda, salt solution ,chain a clay,
fragrance and perfumery. Perfumery and fragrance they purchase from
local market. In case the
particular perfumery is not available in near local market they go
for import the fragrance.
Production Budget:
Production budget largely depend up on marketing department.
Marketing department made a
sales budget depending upon the sales budget. Depending upon the
sales budget production
department starts production.
OGANISATIONAL STUDY AT KS&DL
Inventory Management System:
It has already implemented JIT (Just In Time) technique for
inventory management. It also
implemented OEM (Original equipment manufacture) for smooth
production flow.
Quality Control:-
The quality control department take sample from raw material,
semifinish product and finish
product. The sample then send to R&D department from shop
floor. If the R&D department
any deviation from actual quality in the product the immediately
take corrective action. The
deviation come into existence due to various relation:-
1. It may come due to machine problem.
2. It may come due to raw material.
3. It may come due to labour inefficiency.
The most important thing is that it has a certification of ISO 9001
and ISO 14000.
Safety program:-
The company believes that workers are the asset of the
organization. They provide hand
gloves, helmet, shoes etc.
If the employees feel secure they will increase their productivity.
They trained their employees
for fire extinguishing activity.
Vendor Management:-
Vendor management is one of most important factor any for any
organization and the
production department of KS&DL always maintain every possible
act for maintaining the
vendors.
The first and foremost work is to find out the vendors then is ask
for the vendor to supply the
raw material according to their particular specification.
It also keep watching on delivery schedule from the vendors.if any
vendor fails to supply the
particular raw material within the specific time for 2-3 times the
company change the vendors.
CMR Center For Business Studies Page 40
OGANISATIONAL STUDY AT KS&DL
PRODUCTION DEPARTMENT
Senior Manager
4.3 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.
Branch Depots
3. Hyderabad Hyderabad, Vijayawade, Ananchapur
4. Mumbai Bhiwandi, Ahmedabad, Pune
5. Kolkatta Cuttack, Patna, Gauhati
6. Delhi Delhi, Jaipur, Jullundur
ORG: Operational Research Group report main source of marketing
research private agency
which study the competitors consumer demand, market etc that
generates the report.
CMR Center For Business Studies Page 42
DGM(MKTG)
OGANISATIONAL STUDY AT KS&DL
ORGANISATION CHART OF MARKETING DEPARTMENT
CMR Center For Business Studies Page 43
DGM(MKTG)
PM(Det& Agb) PM(Det& Agb) PM(CFGS)PM(CFGS) M(MRIS)M(MRIS) M
(S) M (S)
AM (CFGS)
AM (CFGS)
AM (Mktg)
AM (Mktg)
Chairmen
MD
GM(MKTG
CHANNELS OF DISTRIBUTION:
KSDL manufactures their products i.e. soaps & detergents. After
this sent to various
distribution points through agents. The stockiest sells to various
retailers hence it reaches to the
consumers.
AM (CFGS)
AM (CFGS)
AM (Mktg)
AM (Mktg)
Jr OffJr Off Jr OffJr OffJr OffJr Off
Sr Asst Sr Asst Sr AsstSr Asst Sr AsstSr Asst
Jr Asst Jr Asst Jr AsstJr Asst Jr Asst Jr Asst
Manufacture (KSDL)
OGANISATIONAL STUDY AT KS&DL
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 Well over a century ago, a Company was formed in
India by the Maharaja of
Mysore, Queen Victoria, and Sir Alfred Chatterton. From this
Company a
legend was born-'Mysore Sandal Soap'. Created then, as now, from
the finest,
purest, Mysore sandalwood oil, Queen Victoria's favoured skin care
product. To
this day Mysore Sandal Soap still enjoys the distinction of being
in use in the
Royal Palaces of the U.K.
CMR Center For Business Studies Page 45
OGANISATIONAL STUDY AT KS&DL
'Mysore Sandal Soap', is the true inheritor of India's golden
sandalwood legacy.
Based in Mysore, the makers of this natural soap have over a
centuries
experience in this field, and are the largest producers of pure
sandalwood oil
and sandalwood soap in the world.
Our supplier's Sandalwood oil products are exported to well
established
markets in the UAE, Bahrain, Saudi Arabia, Kuwait, Qatar, South
East Asian
countries, North America and South America, and now;
The Sandalwood Soap Company Ltd
is proud to introduce these pure natural sandalwood soap and talcum
powder
products to the U.K.
Please do not confuse these products with synthetic 'chemical laden
imitators'.
These products are the genuine original creation; totally natural,
vegetable
CMR Center For Business Studies Page 46
OGANISATIONAL STUDY AT KS&DL
based with no animal derivatives, and of course made with pure
'Mysore
Sandalwood Oil'.
Sandalwood oil has been renowned for its cleansing and skincare
enhancing
properties since the dawn of Egyptian times. Queen Cleopatra is
said to have
charmed Anthony with both her beauty, and with the magnificent day
long fresh
fragrance of sandalwood oil.
FUNCTIONS OF MARKETING DEPARTMENT:
1. Marketing Mix : it is the policy adopted by the manufactures to
get success in the field
of marketing
2. Product Policy: It includes both the turns of development &
improvement produced
and existing products. This all totally done by KSDL both marketing
& R & D
department.
3. Distribution Policy: The manufactured product of KSDL is
supplier to the factory
depots. There are various depots in various states & stored
there.
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.
PROMOTION:- It use basically they use 3 media for promotion that is
electronic media (like
tv,radio),print media news (paper, magazine.),outdoor media (
banner, road side hording)etc.
MARKETING STRATIGY OF KS&DL:-
The main strategy of marketing department is sale maximization.
They use to prepare sales
budget. In anticipating sale budget different depots they choose.
In different depots they find
out which product is moving very frequently and more demanded in
the market. According to
this data the experience persons are preparing sales budget.
CMR Center For Business Studies Page 47
OGANISATIONAL STUDY AT KS&DL
Basically it is noticed that the Mysore sandal soap is acquiring
80% of total sale.
In sales process 2 sales process are involved one is primary sale
and secondary sale.
As the sandal wood oil price is increasing day by day ( 35
lakh/ton) they are not able to
minimize the production cost.
As it is a government holding company they cannot spent huge money
on advertise ment like
other MNC’s. So the product not so popular in northern part of our
country. They introduce
some promotional offer during festivals and introduced some price
off promotion on bulk
purchasing.
Product
• Mysore Sandal does not have much variety but it ensure good
quality.
• Talcum Powder
• Agarbatti
PRICE
• Mysore Sandal soap is available in 75gms and its prize is
Rs.23.
• It is also available in family pack which carries three normal
size soap and its price is
Rs. 72.
• Advertisements are also very traditional type.
PLACE
• Mysore Sandal has few outlets which are specifically for
Mysore.
• KSDL has its main unit in Mysore and one branch is also available
in Rajajinagar, in
Bangalore.
OGANISATIONAL STUDY AT KS&DL
Outlets
• Mysore sandal is available only in few retail shops and medical
shops.
Sales And Promotion
For motivating the consumer KSDL is using print media and
television
FINANCE, ACCOUNTS, AUDITING DEPARTMENTS
FINANCE:
It is the life blood of every organization. It is concerned with
managerial decision
making. This department is concerned with proper utilization of
cash. It identifies the source of
finance where to borrow i.e. ICICI, IRBI, IDBI, Corporation bank
etc.
It has abundant of function which can be enumerated as
follows:
• Effective funds management which is inverted in beneficial
projects.
• Decision making regarding fixing of cash account.
• Obtaining trade credit.
• 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.
CMR Center For Business Studies Page 49
OGANISATIONAL STUDY AT KS&DL
KSDL use process costing as the production mechanism is systematic
it involves
addition of a lot of ingredient in the manufacturing
FINANCE DEPARTMENT CHART:
A/Cs C E
RESEARCH DEVELOPMENT & QUALITY CONTROL
KSDL its full fledged quality control & R&D single mindedly
pursue quality
enhancement. Both departments are headed by highly qualified
professionals, committed to
developing products that keep place with customers changing needs
& perceptive.
When doing Research they have a target which they get benefits
& it enables the
company to forecast the future.
AIMS:
Managing Director
JR.OfficerSupr(A/C’s) (V)-2
JR.Officers (3)
• Product process development.
• Product process improvement.
• 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.
KSDL as 2 QC division
Raw material QC division
• To adopt new methods of product development
• To provide technical support for marketing department
• To make improvement in the process of production
• To administer & maintain technical library
• To maintain customer satisfaction at optimum level.
• To retain perfumery content throughout it uses.
• To maintain standard weight ,size & finishing.
CHART:-
OGANISATIONAL STUDY AT KS&DL
DIVISION OF KSDL:
1. KS & DL Bangalore Division
2. Mysore Division
3. Shimoga Division
1. Packing Materials
2. Engineering Goods
3. Perfumery Stores
6. Fuel & Serviceable stores
AGM (R&D)
MGR (R&D)
• Chemical stores.
• Packing material stores.
• Oil & Fats Stores.
Finished goods 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.
WELFARE DEPARTMENT :
KSDL welfare department can be classified into 3 sections
namely,
1. Statutory
2. voluntary
KSDL welfare association is based on employees contributions,
interest carved.
• Canteen facility
• First aid
• Provident Fund
• Inspection of fittings
c) Mutual :
• Employees get 3 pair of uniform at every 2 years & a Pair of
shoes for
every year
• Cultural Recreations
• Leave facilities
• Employees house building society
OGANISATIONAL STUDY AT KS&DL
1)Maintenance of canteen.
3)Administration of labour law.
4)Promotion of cultural activity.
MAINTENANCE DEPARTMENT:
Effective maintenance is the goal of the company. The areas of
maintenance are:
• Mechanical Maintenance
• Electrical Maintenance
• Civil Maintenance
• Delivery schedule is maintained.
MATERIALS DEPARTMENT:
Materials are obtained at right time, right quality at right place
from right source &at right
cost which leads smooth flow of production.
Objectives:
• Effective control of inventories
Attainder Attainder
It has been divided into 5 sections:
• Oil & fats section
• Perfumery & aromatically section
• Packing materials section
FUNCTIONS OF MATERIAL AND STORE DEPERTMENT:-
The functional process of material and store department are as
follows:-
• At first the purchase department fixed the production budget and
according to this
production budget they sent the bills of material for other
department.
• Then other department check out the present inventory and send
the required inventory
to the production department.
• After receving this the production department pace order to the
vendors.
• To decide to place order there is a committee called
PRRC(Purchase, production,
receive committee). The committee approved the purchase
order.
• After receiveing the order the GRR report is prepared. It is
goods Receive Report. The
concern person used to take sample randomly from the order received
and check the
quality.if the quality is not matched with the specification the
order get return.
CMR Center For Business Studies Page 55
Attainder Attainder
CMR Center For Business Studies Page 56
Dy Gen Manager (MTLS & Strs)
AGM (MTLS)
AGM (Strs)
MGR (MTLS)
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.
STYLE OF MANAGEMENT:
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.
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.
CMR Center For Business Studies Page 57
OGANISATIONAL STUDY AT KS&DL
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, Agarbathies,
creams and shampoos.
MANAGEMENT INFORMATION SYSTEMS DEPARTMETN:
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:
D. Remuneration System:
2. Government fixes the remuneration to executives
E. Performance Appraisal System:
Confidential report is prepared by heads of various departments for
systematic judgment
of the subordinate by authority to assess the standard of work
& overall performance.
INVENTORY CONTROL SYSTEM:
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;
OGANISATIONAL STUDY AT KS&DL
• Assuring the availability of raw material at right
quantity.
• 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.
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.
1. DA
3. HRA 20% of B.P who resides in rented house.
4. Conveyance allowance, Rs.595 per month for workers & Rs.400
for executives.
Family Travel Allowance: Rs.350 to 1000 per year for an
employee.
5. Shift allowance: 3 shifts,
1st Shift: 6.00AM – 2.00PM
3rd Shift 10.00PM-6.00PM
6. Leave facilities: 18 days privilege leave, 7 days casual. 15
days sick leaves
7. Canteen facility
OGANISATIONAL STUDY AT KS&DL
8. Bonus: It is declared within 8 months after closing the accounts
the management has
declared 20% bonus for the current year
9. Increments
Medical benefit:
Workmen card: Domiciliary Rs, 400/-per month is given along with
wages &
Rs.150000/-per annum for hospitalization.
Office card: the co, gives actual cost over & above the
entitlement for major diseases.
SHARED 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
OGANISATIONAL STUDY AT KS&DL
SWOT ANALYSIS
STRENGTHS
• The factory is located in the heart of the city & has all
infrastructure facilities.
• 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
• A very little competition for its major products sandal
soap.
• An ISO 9002 certified company has its own brand image.
• An ISO 14001 company, which commits to reserve the natural
environment in the
production of its quality products to the satisfaction of its
customers.
• Diversified product range keeps the company stable.
• Abundant availability of raw materials.
• Two sandalwood oil factories in Shimoga and Mysore, which produce
75% of
world’s sandalwood oil.
WEAKNESS:
• Slow growth rate 6.2 growths over 40 years against the product of
80%.
• Power intensive: dependent on power may miscarriage here results
in under utilization
of capacity.
• 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.
CMR Center For Business Studies Page 61
OGANISATIONAL STUDY AT KS&DL
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.
THREATS:
2. Government interference may reduce growth potential.
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.
CMR Center For Business Studies Page 62
OGANISATIONAL STUDY AT KS&DL
ANNUAL REPORT OF KSDL Operational performance
Production :-
SI No
Class of Goods Actual production in metric tons
2008 – 09 2007 – 08 01 Soaps 7199.810 6452.917 02 Detergents
2814.466 1871.497 03 Sandal wood oil 1.068 1.152 04 Agarbathies
245.095 208.661
05 Talcum Powder 162.198 158.536 Sales :-
Gross = Rs. 19,006.53 lakhs as against Rs. 16,247.74 Net = Rs.
16,939.19 lakhs as against Rs. 14,552.85
SI No
Value
01 Soaps 7555 14,808.29 7097 13,006.38 02 Detergents 2813 914.96
2007 577.54 03 Sandal wood oil --- 28.37 --- 28.63
04 Agarbathies 395 588.88 206 578.65
05 Talcum Powder 170 262.61 181 323.77
06 Other
CMR Center For Business Studies Page 63
OGANISATIONAL STUDY AT KS&DL
ENDED 31 ST MARCH 2009
PARTICULARS AMOUNT
Rs. Rs.
1,66,47,01,541
EXPENDITURE
801928343
PROFIT BEFORE TAX 11,70,84,989
Less: Provision for Taxation
(i) Current Tax 1,85,00,000
21,28,828 2,03,58,318
Profit brought forward previous year 13,68,26,041
Profit Carried to Balance Sheet 26,77,19,129
The Company earned EBIT (operating profit) of Rs. 4,80,05,540. The
profit for the year
before tax (EBT) has been Rs.4,33,57,146. The Net Profit (after
providing tax) carried over
to Balance Sheet was Rs. 1,50,70,294.
BALANCE SHEET AS ON 31 ST MARCH 2009
CMR Center For Business Studies Page 64
OGANISATIONAL STUDY AT KS&DL
PARICULARS 31/03/2009 31/03/2008
Rs. Rs. Rs. Rs.
SOURCES OF FUND: 1. Share holders Fund: (a) Share Capital
31,82,21,000 31,82,21,000
(b) Reserves & Surplus
(b) Unsecured Loans
2. Investment 100 100
(b) Sundry Debtors
5,00,00,000 1,09,13,72,587 3,00,00,000 91,16,89,555
(ii) Provision 20,49,56,560 45,16,07,354 16,67,70,640
47,55,23,005
Net current assets
OGANISATIONAL STUDY AT KS&DL
Total 77,84,20,599 55,54,08,013
FINDINGS:
♦It is a company wholly owned by government, so it has to follow
the rules made by the
government.
OGANISATIONAL STUDY AT KS&DL
♦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&RECMENDATIONS
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.
OGANISATIONAL STUDY AT KS&DL
LEARNING EXPERIENCE
The learning experience gained by me during the in-plant training
was very much practical
oriented. Mostly all the concepts and theories, which I studied in
the class, are applicable
practically.
The overall study of the organization reveals that the company has
grown tremendously
since its incorporation from 1918, now it has independent units for
manufacturing sandalwood
oils, toilet soaps, washing soaps, detergents, cosmetics, incense
sticks and industrial products.
The initially named Government Soap Factory was renamed as
Karnataka Soaps and
Detergents Ltd in 1st October 1980.
Its trademark is “Sharabha”, the slogan stands as “Natural products
with exotic
fragrance”. The company is a leading sandalwood soap Manufacturer
in the country. Even
though they have demand for their products in both domestic as well
as international market,
They are not able to establish themselves as market leaders due to
various reasons such as
extensive work force, non-utilization of installed capacities of
manufacturing, lack of proper
distribution network, lack of expenditure in the areas of
advertisements and publicity,
competitions of various soaps and detergents and lack of timely
decisions.
The company has an effective human resources department where in
the employees are
given excellent packages, incentives and extensive care is taken by
providing facilities such as
canteen, medical facilities, motivation classes and extracurricular
activities.
I had a great time working on the project, as it gives insights
into the working environment
of an organization. The training has exposed me to many facts of an
organization and also
helped me to gain practical knowledge, which will go a long way in
the horizon of our career. I
became more aware of the soap industry and the role played by
KSDL.
Structure: I got to know how decisions are communicated, the flow
of decision
process. The way in which departments are classifieds on the basis
of their functioning.
The functions of each departments and its relevance. The way in
which the departments
are inter-linked and coordinated.
OGANISATIONAL STUDY AT KS&DL
Skills: Through skills, how the training needs are satisfied to the
employees of different
grades. The different on-job and off-job training given to the
employees.
Style: Through style, I got to know how decisions flow from top to
bottom in KSDL.
How the production process is planned and worked out. How self
managed teams
perform to achieve the targets set by the management.
Strategy: Through strategy, I found how strategies were formulated
to overcome the
rigorous competition. Strategy is very much essential for the
company to survive in the
market. Supply Chain Management is one of the strategies adopted by
KSDL, through
which they are able to reduce the cost of production and increase
profitability.
System: System plays an important role of supporting and
facilitating various activities
that are carried out within the organization. KSDL adopts latest
system.
Overall the learning experience was quite satisfactory which
enabled me to experience
a slice of the real and ruthless industry.
Few things which are advantageous theoretically will not be
advantageous in practical
such as decisions, bottom up management. Implant certain ideas,
changes in certain ideas,
changes in certain policies, methods, etc.
It served an opportunity to integrate practical experience with the
theoretical concepts and to
understand functional aspects of the various departments in the
organization.
The theory was the base and this inplant training help I relate to
reality.
It provided insight knowledge particularly to view the large scale
production heavy equipment
and machinery used for production purposes.
EXPOSURE TO THE COMPANY
Related to HRM
The essence of the company is to appraise the performances of the
employees and their
achievements, disciplinary actions are taken against the employee’s
unity, malpractices,
misconduct as well as the poor performance, etc.
The company motivates employees through promotion, transfers and
few fringe benefits etc.
CMR Center For Business Studies Page 69
OGANISATIONAL STUDY AT KS&DL
The company recruits employees through employment exchange.
The training effectively and efficiently envisaged the main purpose
of training the employees.
Six months training is given for fresh candidates for all public
sector organizations through
KSBDE (Karnataka State Bureau of Public Enterprise).
The Government through the IAS cadre purely represents the Board of
Directors, Chairman
and other superiors.
It helped to know major strengths like same recognition,
proprietary technology, skilled of
employees.
It made easier to know working condition of the employees at
different levels under different
shift timing.
Related to Financial Management
Training gained the knowledge in maintaining the records for
regular and easy accounting,
analyzing and controlling and also evaluates the inventory.
Related to marketing
It generated sense of knowledge to understand customer behavior
with various attributes at
different situation buying process with the result of customer
satisfaction, brand loyalty.
Related to Production
Training served me to understand that production department is the
nerve center of all business
activities.
The production method followed is continuous.
It also made me to visualize the safety facilities provided during
the production function.
Thus the training gave a unique golden opportunity to understand
practically about the
management operation better in KARNATAKA SOAPS AND DETERGENT
LIMITED.
CMR Center For Business Studies Page 70
ASST.GEN.MGR [HRD]
MGR [HRD]
FIRST AID
OFFICER [HRD]
TIME OFFICE
JR. OFFICER
The “SHARABHA”
TOILET SOAPS
SI.NO
Group
I