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. CMR Center For Business Studies Page 2 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. HISTORY OF THE SOAP: CMR Center For Business Studies Page 3 England & other countries.OGANISATIONAL STUDY AT KS&DL Soap manufacturing was started in North America. linear alkyl. The major ingredients are soap ash. France became famous & many small factories were established there. caustic soda and soap ashes in the cheaper varieties of soaps are quite high. Tripoli phosphate poses number of serious problems in terms of availability. The demand supply gap for vegetable oil is 1. benzene& sodium. • • • • • Mysore soap factory at Bangalore Godrej soap at Bombay Bengal chemicals Tata oil mills 1930 lever brothers company PROBLEMS OF SOAP INDUSTRY: Soap industry faces some problems incase of raw materials. They are. From 1905 onwards few more factories were setup.5 to 2 lakhs tons & is met through imports. During middle age soap was made at various places in Italy. COMPANY PROFILE: CMR Center For Business Studies Page 4 . In recent times. In India the first soap industry was established by North West soap company in1897 at Meerat following the Swadeshi movement. France. Some American companies with well known names were started 200 years ago. . 4.Colgate Palmolive Ltd. The soap industry in India faces a cutthroat Competition. . while multinational companies dominate the market. . Following Swadeshi movement in 1905.Nirma Soap Works. THE INDIAN SOAP INDUSTRY SCENARIO: The Indian soap industry has been dominated by handful of companies such as 1.. environment.Proctor & Gamble Ltd. Hindustan Levers Limited. 2. Growth of population. Godrej Soaps Private Limited. there is a large market for it. This increase in demand can be attributed to:1. toxicological allergy problems. The whole soap industry is experiencing changes due to innumerable reasons such as Government relations. but began to stagnate. Recent entrants include .OGANISATIONAL STUDY AT KS&DL INTRODUCTION TO SOAP INDUSTRY:Soap is one of the commodities. Mysore Government Soap factory at Bangalore. 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. Godrej Soaps at Bombay. Since it is non-durable consumer goods. More and more Soap manufactures are trying to capture a commanding market share by introducing and maintaining acceptable products.ITC Ltd The Indian Soaps industry continued to flourish very well until 1967-68.. which has become an indispensable part of life of the modern fantasy world. CMR Center For Business Studies Page 5 . Tata Oil Mills (Taken over by HLL ) 3. increase in cost of raw material etc. 2. Soon it started to recover and experienced a short upswing in 1974. few factories were set up and they were: 1. which heralds over the cleaning business. CMR Center For Business Studies Page 6 . ivory. The origin of sandalwood and its oil in Karnataka. but with commencement of First world War India faced Severe Crisis on the business of sandalwood. The world’s richest sandalwood resource is from one isolated stretch of forests land in South India that is Karnataka. sandal.6 Kg and soap at 543gms. HISTORY:India is a rich land of forest. Growth in degree of personal hygiene. 3.OGANISATIONAL STUDY AT KS&DL 2. KSDL is under organized Sector. silk. Increase in urbanization 4. PRESENT STATUS: MARKET SCENARIO India is the ideal market for cleansing products.5 to 2 Lakhs tons and is met through imports. Soap manufacturers are Classified as. is well known as Fragrant Ambassador of India & Sandalwood oil is infact known as “Liquid Gold”. Income and consumption increase. The major ingredients like soda ash. precious gems are magical charms of centuries. linear alkyl benzene and Sodium Tripoli phosphate poses number of serious problems in terms of availability. the trading of sandalwood logs started which was exported to Europe and New destinations. Hindustan Lever. sells in all over the cleaning business. Organized and unorganized sector. The most enchanting perfumes of the world got their exotic spell with a twist of sandal. By the Inspiration of His Highness Maharaja of Mysore late Jayachamarajendra Wodeyar. which is used in making of Mysore sandal soaps. The country’s per capita consumption of detergent powders and bars stands at 1. PROBLEMS OF SOAPS & DETERGENTS INDUSTRY: Industry faces some problems due to increase in the cost of raw materials. The demand and supply gap of vegetables oil is 1. on the Bangalore – Pune Highway. In 1950 Government decided to expand the factory in two stages. Today’s famous Mysore sandal soaps credit goes to late Sri Sosale Garalapuri Shastri who incorporated the process of soap making using Sandalwood oil. The factory was started as a very small unit near K. which stopped its operations in the year 2000 for want of Natural Sandalwood. The Maharaja of Mysore & Diwan Sir. 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 toilet soap of the company was made up of sandal wood oil. Bangalore in July 1957. of Sandalwood oil.A.R. Visvesvaraya. He was sent to England to master the fine aspects of soap manufacturing.Circle.M. Bangalore with the capacity of 100 tons P. His Highness Maharaja of Mysore created this situation as an opportunity by sowing the seed of the Government Sandalwood Oil Factory.e.OGANISATIONAL STUDY AT KS&DL This situation gave rise to start of an industry. The first product was washing soap in addition to the toilet soap in the year 1918. Another sandal wood oil division was established during the year 1944 at Shimoga. The project was shaped with the engineering skills and expertise of the top level. where the present plant is located. Bangalore. CMR Center For Business Studies Page 7 . The plant occupies an area of 39 acres (covering Soaps. easily accessible by transport services and communication. This factory started at a moderate scale in year 1916. The factory shifted its operation to Rajajinagar industrial area. which is the present KS&DL.Visvesvaraya established the Government Soap factory during the year 1918. 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. Late Sir M.. He was an eminent scientist in the field working at the Tata Institute. which produces value added products i. Detergents and Fatty Acid divisions). the great Engineer who was the man behind the project. M. present one] from 1st July 1957.e. Agarbathies and Cosmetics. RENAMING: On 1st October 1980.Sudbrough. The factory started functioning in this new premise [i.. The project took shape with the engineering skills and expertise of top-level team under the leadership of Sir. detergent.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. Today Company produces varieties of products in the toilet soaps. the company has been single – minded pursuit of excellence.21 lakhs includes the shifting of the factory to a newly laid industrial suburban of Bangalore. The expansion project worth of Rs. it has achieved growth and development in production scales and profits. the Government Soap Factory was renamed as “Karnataka Soaps and Detergent Limited” The Company was registered as a public limited company.Visvesvaraya. Like this soap factory was started as a small unit and now it has grown up to a giant size. OBJECTIVES OF KS & DL: To serve the national economy To attain self – reliance To promote and uphold its image as symbol of traditional products CMR Center For Business Studies Page 8 . Watson and Dr. The Mysore division started functioning from 1917 and only during 1984 manufacturing of perfumed and premiere quality Agarbathies at was started. Prof. From this year onwards till date the factory had never looked back. The industry has 2 more divisions one at Shimoga and another at Mysore where sandal wood oil is extracted. Right from the first log of sandalwood that rolled into the boiler room in 1916. both to the state and to the country. To attain self-reliance. Hindustan Uni Lever Ltd. To promote purity & quality products To maintain the Brand loyalty of its customers. To maintain the brand loyalty of its customer. Some of its main competitors are: M/S. global trends and the state’s policy for using technology in every aspect of governance... Most importantly to earn the invaluable foreign exchange. CMR Center For Business Studies Page 9 . VISION STATEMENT: Keeping pace with globalization. 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. Making all out efforts to achieve reasonable profits. To supply the products mentioned above at most reasonable and competitive rate. To build upon the reputation of Mysore sandal soap based on pure sandal oil. M/S. COMPETITORS OF KS&DL PRODUCTS AND SERVICES:KS&DL is facing cut-throat competition in national and international market.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. MISSION STATEMENT:• • • • • To serve the National economy. Godrej Soaps Private Ltd. all technology alliances. Secure all assistance and prime status from Government of India. which embodies the combined virtues of wisdom and strength.OGANISATIONAL STUDY AT KS&DL M/S. The sharabha is a mythological creation from the “puranas” which has a body of a lion and head of elephant. South America. Saudi-Arabia. Nirma Soaps Private Ltd. SLOGAN:“NATURAL PRODUCTS WITH EXOTIC FRAGRANCES” KS & DL has a long tradition of maintaining the highest quality standard. 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. the trademark of KS & DL. Jyothi Laboratories TRADEMARK OF KS & DL:The “SHARABHA” The carving on the cover is the sharabha. The maharaja of Mysore as his official emblem adopted it. The reasons why its products are much in demand globally and are exported regularly to UAE. Beharen. The entire toilet CMR Center For Business Studies Page 10 . Qatar. Wipro M/S. M/S. Proctor& Gamble M/S. right from the selection of raw materials to processing and packing of the end product. It is adopted as an official emblem of KS& DL to symbolize the philosophy of the company.. Kuwait. The sharabha thus symbolized a power that removes imperfections and impurities. 1974 – Mysore sales international limited was appointed as the sole selling agent. Installing new boiler soap building plant and drying chamber.Tons with the following modifications. 1957 – Factory shifted its operation to Rajajinagar industrial area. for marketing its products. Reuse and recycle materials wherever possible and minimize energy consumption and waste.The factory output rose to 500 M. BIRDS EYE VIEW OF KS&DL: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 . 1954 – Received license from Government to manufacture 1500 tons of soap and 75 tons of glycerine per year. 1975 – Rs.4 Crores synthetic detergent plant was installed based on Italian technology by Ballestra SPA.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 . Renovating the whole premises. POLICY OF KS&DL: Seek purchase of goods and services from environment responsible suppliers. Communicate its environment policy and best practices to all its employees’ implications. Set targets and monitor progress through internal and external audits. 2. 1. 1980 .OGANISATIONAL STUDY AT KS&DL soaps of KS & DL are made from raw materials of vegetable origin and are totally free from animal fats. Tons Per Annum. b) Rs. as the company suffered losses continuously since 1980 at its net worth fully eroded. 1981 – a) Production capacity increased to 6000 tons. 2004 – The ISO-9002 was upgraded to ISO-9001-2004. CMR Center For Business Studies Page 12 . 1985 – Production capacity was raised to 26. which depends on the company’s distribution structure. Whereas in other parts like Eastern & Northern markets penetration of KSDL product is relatively poor.98 Crores wiped out and in May BIFR. The Company is making profit continuously. colors and fragrances introduced to meet the varieties & tastes of consumers. New Delhi in December for rehabilitation. 1996 – The BIFR approved the rehabilitation scheme in September & the Company stated making Profits.OGANISATIONAL STUDY AT KS&DL “Karnataka Soaps & Detergents Limited”. A large variety of toilet soaps at attractive shapes. 1992 – The company was registered with the Board for Industries and Financial Reconstruction (BIFR). PRESENT STATUS OF THE COMPANY The company is mainly dependent on southern market. 1984 – Manufacturing of premium quality of Agarbathies at Mysore division. 2000 – ISO-14001 certificate pertaining to environmental management system. 2003 – The entire carried forward loss of Rs. It is only State Public Sector unit that has come out of BIFR. installation and Servicing.5 Crores Fatty Acid Plant was installed. Quality Systems. stockiest and field personnel strength. declared the company to be out of its Purview.000 M. 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. 1999 – ISO-9002 Certificate for quality assurance in production. D..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. TCI gives us door-to-door delivery. (K. through total quality management and continuous improvement through the involvement of all employees. 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. To improve the quality management system and to facilitate TQM in the process of soap and detergent. Hand In Hand For Twenty-Eight Years Karnataka Soaps & Detergents Ltd.) Bangalore.S. the management took decision to obtain ISO-9002 by end of March 1999. KS&DL has got ISO 9002 certificate.L. 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. For all the past twenty five years or more TCI has ensured safe passage of our goods in India. located at the Northern side of Bangalore in the large Industrial Area called Yeshwanthpur. year after year. Further. Bangalore Karnataka Soaps & Detergents Ltd. the biggest Sandalwood Soap Industry in Asia. Shanbagh. It is the mutual trust and respect and appreciation for each others that keep the relationship going. CMR Center For Business Studies Page 13 . AN ISO-9002 COMPANY: KS & DL with a tradition of excellence of over eight decades is committed to customer delight." Said Mr. 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. CMR Center For Business Studies Page 14 . Equipped with latest technology and backed by full-fledged quality control and R&D support. company standards registered for ISO 9002 by the end of March to the Bureau of Indian Standards. The Company got itself upgraded to ISO-9001-2004. The Company is developing new products to meet the changing preferences of its customers. 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. In this direction company obtained the guidance from Consultancies. Quality Systems in the year 2004-05.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. Bangalore. Bangalore and Bureau of Indian Standards. document quality manual and quality system procurement. year after year on long-term basis. KS&DL is marching confidentially ahead in the new millennium. Accordingly. The environment management system adopted in the company through this motive as follows: Conservation of energy Conservation of Surrounding Conservation of resources. Obtained the certificate by the end of March 1999 itself. The company gives initial training including conducting employee’s awareness programme. 125 75 75. this unique soap captured hearts and markets at home. KS&DL today in one of the largest producers of Sandal wood oil and sandal wood soaps in the world. A fragrant gift to the world from the first Government Soap Factory of India. enriched with all the goodness of natural sandal wood oil. 125 100 100 150 150 150 150 150 150 17 GIFT RANGE SBT SJR 06 IN 01 GOLD SIXER CMR Center For Business Studies Page 15 . Nurtured by the Maharaja of Mysore. Karnataka Soaps and Detergents limited (KS&DL) is the true inheritor of this golden legacy of India.OGANISATIONAL STUDY AT KS&DL THE BIRTH OF A LEGEND:The early year of the 20th century witnessed the birth of a magical formula. Continuing the tradition of excellence for over eight decades. as well as right across the globe creating a fragrant legacy for the state of Karnataka. created from the finest and purest sandalwood oil. better known as “liquid gold”. PRODUCT MANUFACTURED BY KS&DL:- TOILET SOAPS NAME OF THE PRODUCT Mysore Sandal Soap Mysore Sandal Classic Soap Mysore Sandal Gold Soap Mysore Sandal Baby Soap Mysore Special Sandal Soap Mysore Rose Soap Mysore Sandal Herbal Care Soap Mysore Jasmine Soap Wave Soap Mysore lavender Soap Mysore Sandal bath tablet Mysore Sandal classic bath tablet Mysore Jasmine bath tablet Mysore Special Sandal tablet Mysore Sandal rose tablet Mysore Sandal Guest tablet UNITS OF GRAMS 75. distilled exclusively at our divisions in Karnataka-Mysore. using only the best Grade sandal wood oil in its product range. 125 75 75 100 100. 300 100. 100.100 Bodhisattva Venkateshwara Durga Ayyappa Alif Laila Meditation CMR Center For Business Studies Page 16 . 200.V. 50.OGANISATIONAL STUDY AT KS&DL DETERGENTS NAME OF THE PRODUCT Mysore detergent powder Mysore detergent powder Mysore detergent Cake Mysore detergent cake UNITS IN GRAMS 1000 500 125 250 TALCUM POWDERS NAME OF THE PRODUCT Mysore Sandal Talc Mysore Sandal Baby Talc UNITS IN GRAMS 20. 400 AGARBATHIES NAME OF THE PRODUCT Mysore Sandal Premium Mysore Sandal Regular Mysore Rose Nagachampa Suprabhatha Mysore Jasmine Parijata Sir M. The products produced at KS&DL are the Soaps. Agarbathies and Sandalwood oil. Continuing the tradition of excellence for over eight decades. PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL SOAP a. using only the best East Indian grade Sandalwood oil & Sandalwood soaps in the world. Detergents. Mysore Sandal Soap (75gm. Mysore Sandal Special Soap (75gm) c.OGANISATIONAL STUDY AT KS&DL PRODUCT PROFILEKS&DL is the true inheritor of golden legacy of India.125gm & 150gm) b. Mysore Sandal Baby Soap (75gm) 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 l. Mysore Jasmine Soap m. Mysore Sandal Herbal Care (75gm) (100gm) 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. 1. Sensor Detergent Powder 2. Mysore Detergent Powder 3. Mysore Detergent bar 4. Mysore Detergent Cake (1kg/2kg) (1kg/500gms) (250gms) (125gms/250gms) AGARBATHIS: 1. Mysore Sandal premium 8. Mysore sandal 2. Mysore Rose 3. Suprabath 4. Parijata 5. Venkateshwar 6. Ayyappa 7. Chandhana 9.Nagachampa 10.Mysore Jasmine 11.Bodhisattva 12.Durga 13.Alif Laila 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 100400gms. CMR Center For Business Studies Page 20 Car stand CMR Center For Business Studies Page 21 . agarbathies & shampoo. right from the selection of raw materials to processing and packaging of the end product. 3. OWNERSHIP PATTERN: “Wholly owned by Government of Karnataka”. Library 3. All the toilet soaps of KS&DL are made from oils & fats of vegetable origin & totally free from animal fat. The sandalwood oil. dish wash. of course. The company is striving to develop new perfumes for soaps detergents. INFRASTRUCTURAL FACILITIES: 1. /Saudi Arabia. COMPETITORS INFORMATION AND THEIR MARKET HLL Godrej Procter & gamble KSDL Others 70% 4% 10% 11% 5% SHARE: PRESENT STATUS: 1. detergent bar & room refresher.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. is much sought after by the leading perfume houses of the world. Qatar. The company has entered into shampoo. The reason why its products are much in demand globally & are exported regularly to UAE. South East Asian countries as well as North America & South America. Canteen facility 2. 2. The company wants to improve the existing products in terms of quality. Bahrain. Kuwait. Waiting room WORK FLOW MODEL: SILOS (Silos are closed chambers) Soaps Noodles Container Mixer Simplex Plodder It becomes NOODLES Milling It becomes soap ribbons Duplex plodder Cutting Machine Cakes are led to Stamping Machine CMR Center For Business Studies Page 22 .OGANISATIONAL STUDY AT KS&DL 4. 100gms to meet the growing demand for religious purpose. Detergent Plant M/s Chemical Bombay have given 1st price for the year 1980-81 3. herbal transparent soap. Government of Karnataka Dept of Industries and commerce State Export Promotion Advisory Board. made out of 33 essential oil based perfume. CMR Center For Business Studies Page 23 . ICWAI National Award for EXCELLENCE IN COST MANAGMENT 6. Geographical Indication GI-2005 4. Aloe Vera. • • Improvement in existing products Mysore Sandal classic improved moisturizers & skin conditions. Vitamin-E etc as additive and suitable for all types of skin and all seasons. Introduction of sandalwood powder in 50gms.OGANISATIONAL STUDY AT KS&DL Wrapping machine Led through the conveyor belt ACHIEVEMENTS/AWARD: 1. ISO 9001-2000 in the year 1999 ISO14001-2004 in the year 2000 5. “EXPORT AWARD” 1974-75 2. For the outstanding export performance of Cosmetics & Toiletries FUTURE GROWTH AND PROSPECTUS: • Introduction of anti-bacteria. Karnataka Soaps and Detergents Limited. Bangalore – 560 055 Ph: 080-3377691/3370469/23371103 to 06 22376922 to 24 Email : Mysorsandal @ vsnl. Chairman & MD Renamed . KS&DL AT GLANCE:Incorporated Name Address . Timely introduction and implementation of market driven decisions. Reduction in distribution expenses.OGANISATIONAL STUDY AT KS&DL • • • • • • • • • Introduction of new higher powered detergent powder for institutional sales in bulk packaging. Aggressive advertisement and publicity as part of sales promotion. Introduction of new trade schemes to increase sales.1918 .5531. . To attain market leadership.mysoresandal.Wholly owned by Govt. Instant decision making in certain procurement activities. Ensuring effective internal control. Rajajinagar.of Karnataka nominates/appoints Board of Directors. of Karnataka Undertaking Management .com Year of Establishment Constitution .1980 Page 24 CMR Center For Business Studies .Karnataka Soaps and Detergents Limited Bangalore Pune High Way Post Box No.Govt. Cost-reduction in all areas.com Website : www. Process know how . It is the Body of lion with the head of an elephant means blending the intelligence of lion with strength of an elephant.OGANISATIONAL STUDY AT KS&DL Trademark . Agarbathies.000 M.Toilet soaps.000 metric tons of Soaps & 10. Cosmetics.The trademark is SHARABHA. Powders. bar soaps. Sandalwood Oil.Tons of Detergents Per annum Plants - At Bangalore Soap Plant Detergent Plant Fatty Acid Plant - At Mysore Sandal wood Oil Agarbathies ------- At Shimoga Duty Paid Godown CMR Center For Business Studies Page 25 . Baby products. Detergent Cakes. Capacity of the Unit - Licensed capacity is 26. Production range .The facility is a pioneer in the Manufactures of various soaps and technology Imported from Italy. ORGANIZATION CHART OF KS&DL KS&DL is Functional type of organization.D SECOND LEVEL consisting of Directors of Finance and Special officers THIRD LEVEL consisting of senior managers.OGANISATIONAL STUDY AT KS&DL STRUCTURE OF ORGANISATION: A. BASIS OF DEPARTMENTATION KS&DL is a manufacturing concern of moderately large size. The hierarchy is represented as follows. economical and reasonable organization pattern. deputy managers and officers. Assistants and Attendees. Under this type of organization men with special abilities in a specialized function are employed. It facilitates effective utilization of manpower and resources and it is a simple. CMR Center For Business Studies Page 26 . they are TOP LEVEL consisting of BOD’s and M. We can see here functions wise departmentation. C . FOURTH LEVEL consisting of clerks. B. LEVELS OF ORGANISATION The organization of KS&DL consists of 4 levels. 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 Production Department Marketing Department Finance\Accounts Department Research & Development Department Stores Department Welfare Department Maintenance Department Materials Department Management Information System Department CMR Center For Business Studies Page 28 . OGANISATIONAL STUDY AT KS&DL HUMAN RESOURCE DEPARTMENT: CMR Center For Business Studies Page 29 . OGANISATIONAL STUDY AT KS&DL ORGANISATION STRUCTURE OF HRD DEPARTMENT MANAGING DIRECTOR ASST. ATTENDER SR.ASST. OFFICER ASST.OFFICER HELPER SR.ASSTS ATTENDER Cooks Helpers 01 CHAIRMAN Chairman Page 30 CMR Center For Business Studies .MGR [HRD] MGR [HRD] FIRST AID TIME OFFICE OFFICER [HRD] CANTEEN VMO LWO JR.OFFICERS SENIOR ASSTS JR. JR.GEN.MGR SR.ASSTS. Training 4.OFFICER SR. 1. staffing. Reporting & Budgeting is the part of personnel management. Personnel management performs lot of function in KSDL. Recruitment 2. Disciplinary matters 6.ASSTS JR ASST Helpers Managing Director Manager [HRD] Assistant Manager [Canteen] Labour Welfare Officer Junior officer Visiting Medical Officer Junior Officer [HRD] Senior Assistants Attainder Junior assistant Helpers Luther Gulick highlighted “POSDCORB” which stands for planning organizing. Implementing. Directing. Coordinating. Cordial relationship of Industry 5. Performance appraisal 7. 3.OGANISATIONAL STUDY AT KS&DL 02 03 04 05 06 07 08 09 10 11 12 MD Mgr [HRD] Mgr ASST MGR JR OFFICER VMO Officer [HRD] JR. Employee safety etc KEY FUNCTIONS OF THE HRD:1) Training and Development 2) Promotion and Transfer 3) Wages and salary administration 4) Performance Appraisal 5) Industrial Relations & union matter CMR Center For Business Studies Page 31 . MAN POWER DETAILS: SOD GROUP Executives Supervisors Workers Bangalore 85 49 548 Mysore 7 10 30 Marketing branches 56 15 39 Duty paid Godown Shimoga 2 16 Total 150 74 633 Page 32 CMR Center For Business Studies .OGANISATIONAL STUDY AT KS&DL 6) Disciplinary Action and 7) Welfare Measures 8) Maintain personal records. 10) Study on labour turn over. wages &experience profile of the employees. character & attitude. 15) Maintenance of manpower inventory. 12) Compilation of periodical report to various statutory authorities. 13) Maintain of SC/ST roster. 16) Study on absenteeism & suggesting measure. 17) Coordinating dispute cases before conciliation labour court and other court. Personnel management is act as a mother as it ensures people are treated perfectly well & widening the scope of the employees. 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. 14) Maintenance of educational. 11) Verification of cash certificate. 3.30pm.30pm The lunch time is from 12. • 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. For this a washing allowance of Rs. Washing Allowance: The company provides two sets of uniform once in a year. 18 days EL is credited to an employee.00pm to 6. No allowance is paid to the first shift workers.OGANISATIONAL STUDY AT KS&DL Total 682 47 110 18 857 MAN POWER DETAILS ACCORDING TO SEX WISE: EMPLOYEES MEN 827 WOMEN 30 FRINGE BENEFITS PAYABLE TO THE UNIONIZED CADRES EMPLOYEES 1.30pm. a sum of Rs.00pm to 10.00am 7.00pm 2. 2.50 per month is paid to every worker. The office hour is from 9. 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.00pm to 12.30am to 3.25 per day is paid to workers for second and third shift respectively.00pm 10. CMR Center For Business Studies Page 33 .00am to 2. The shift timings are as follows: First Shift Second Shift Third Shift General Shift 6.15 and Rs. 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. Every Sunday is rest day for the employees. Shift Allowance: There are three shifts and one general shift.30am – 5. This leave can be accumulated and encased. 75. Conveyance Allowance: The conveyance allowance of Rs. 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..500 per employee per year who has put a minimum three years of service. 7.Family Travel Allowance: This allowance is paid at the rate of Rs. 5. 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%. 6.Attendance Bonus: It is paid equivalent to one day’s basic pay subject to minimum of Rs. and Store Keepers from Rs. scheduled banks etc. 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. 4.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.55 to Rs. Asst.Annual Bonus: It is agreed to pay the profit sharing bonus in terms of the provisions payments of Bonus Act 1965.Special Allowance: Paid to Typists. co-operative banks.Canteen Facilities: All employees are provided with canteen facility at highly subsided rate.. Stenographers.680 per month per workman is extended. Festival and National Holidays: Number of paid holidays in the company is 10 festival holidays and 3 national holidays per calendar year. 10. House Building Advance (HBA). House Repair Advance. 9.Cashiers. 11. 15 days of sick leave is given for an employee per year and it can be encashed.75 per month. CMR Center For Business Studies Page 34 . 8. Absence without pay for more than 70 days less than 100 days. the company has taken mediclaim policy from Insurance Company for a sum of Rs. 15.1.000 per employee.OGANISATIONAL STUDY AT KS&DL 12. 01.NO 01 Group I Revised Pay Scale 5140-110-5690-140-6390-170-7240-200-8240 Page 35 CMR Center For Business Studies . 14. Postponement of increment by One month 2 months 3 months PAY SCALE OF UNIONSED CADRE EMPLOYEES W.000 will be paid to the nominee in case of death of an employee.2. Memento to retiring employee: Rs.30. 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 Absence without pay for more than 30 days less than 40 days. which includes spouse and two children.05.04. Death Relief Fund: Rs. Medical Reimbursement: Benefit to non-ESI employees a sum of Rs.500 will be paid as memento to retiring employees. 13.2003 TO 30.F.50.500 per month will be paid per employee towards domiciliary treatment.2008 SI. Absence without pay for more than 40 days less than 70 days.E. With regards to hospitalization treatment. Manager Director Revised Pay Scale 10000-250-10500-300-12300-350-14400-400-16800450-18150 10800-300-12300-350-14400-400-16800-450-19500525-20025 14050-350-14400-400-16800-450-19500-525-22650600-25050 18150-450-19500-525-22650-600-26250-675-26925 20025-525-22650-600-26250-675-28275 22125-525-22650-600-26250-675-30300 24450-600-26250-675-30300-750-31800 26250-675-30300-750-34800-850-36500 SALARIES SCALE GROUP A B C D SALARY 14050-25050 above 10800-25025 above 5690-10240 above 5140-8240&6250-9440above NO.F. OF EMPLOYEE 124 26 664 43 CMR Center For Business Studies Page 36 . 01.E.07. Officer Officer Asst.NO 01 02 03 04 05 06 07 08 Designation Jr. Manager Dy. Manager Gen.2008 SI. Gen.OGANISATIONAL STUDY AT KS&DL 02 03 04 05 06 07 08 II III IV V VI VII VIII 5250-110-5690-140-6390-170-7240-200-8240-240-9440 5690-140-6390-170-7240-200-8240-240-9440-280-10840 5970-140-6390-170-7240-200-8240-240-9440-280-10840330-12490 6110-140-6390-170-7240-200-8240-240-9440-280-10840330-12490-400-14490 6390-170-7240-200-8240-240-9440-280-10840-23012490-400-14490-500-15990 7240-200-8240-240-9440-280-10840-330-12490-40014490-500-17990 8240-240-9440-280-10840-330-12490-400-14490-50017990-600-19190 PAY SCALE OF OFFICERS W. Gen. Manager Manager Asst. 10. Conveyance Allowance. Festival Advance. Medical Attendance Rules. 8. 13. 11. Annual Increment. Leave Rules with encashment benefit. To create certain degree of mobility and job rotation. Time Bound Advancement Scheme for Unionized Cadre employees. 2. 6. TA / DA Rules. Probationer’s Rules. 4. Carrier Development Plan and Promotion Rules for Officers.OGANISATIONAL STUDY AT KS&DL THE COMPANY HAS FORMULATED THE FOLLOWING HR POLICIES: 1. 3. 14. The employees below the rank of officers i. Delegation of Powers. Incentive for adopting small family norms. 15. Education Advance. PROMOTION In the company the Promotional Policy has twin objectives because the career planning is also included. 16. CMR Center For Business Studies Page 37 . Standing orders applicable to Unionized Cadre employees. HBA / Interest Subsidy. LTC / FTA. KS&DL Conduct and Disciplinary Action Rules 1984 for Junior Officers and above. 12. 5.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. 9. 7. • • Ensure high level of expertise and professionalism. PRODUCTION DEPARTMENT: KSDL as 3 main production plants: Fatty Acid Plant Soap Plant Detergent Plant Fatty Acid Plant: CMR Center For Business Studies Page 38 . VACANCY BASED SELECTION: Officers from Grade-V and above come under this plan. Mode of selection: Is done through interview conducted by Staff Selection Committee once in a quarter. Out of the weight age. 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. Selection: Is done through staff selection committee. They are Career Development Plan (CDP) and Vacancy Based Selection (VBS).OGANISATIONAL STUDY AT KS&DL The promotional policies for the officers divided into two categories. The eligibility criteria is a minimum of five years in the present grade and due weight age is given to experience and qualification. 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. The promotion is effected only when there is a vacancy. CAREER DEVELOPMENT PLAN: Officers from Grade I to IV come under this plan. The ingredients of this plan are given below: • • • • Eligibility: Is a minimum of five years of service. salt solution .chain a clay. The finishing touches are given or high tech universal wrapping machine. In case the particular perfumery is not available in near local market they go for import the fragrance. fragrance and perfumery. The sophisticated plant from Italy has a wholly integrated straight line facility that links up process sequence for higher productivity. It is also obtained & used for soap making. This high speed auto wrapper has the capability to handle soaps of virtually & size or shape. Perfumery and fragrance they purchase from local market. Depending upon the sales budget production department starts production. powder & a syntax plant for detergent cakes & bars. The plant has a capacity to process 10. To produce spray dried. 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. Production Budget: Production budget largely depend up on marketing department. Soap Plant: The soap plant is one of the largest production plants in the country wit an installed capacity of 26.OGANISATIONAL STUDY AT KS&DL The basic raw materials. Detergent Plant: It has installed capacity of 10.000mt of oils 1 fat. Marketing department made a sales budget depending upon the sales budget. CMR Center For Business Studies Page 39 . 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. caustic soda. KSDL’s soap plant has its uniqueness been in a position to process as many as ten different varieties of soap simultaneously. Oil & fats undergo the splitting & refining process including hydrogenation at the fatty acid plant.000 tones per annum.000 tones per annum. 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. It also keep watching on delivery schedule from the vendors. It also implemented OEM (Original equipment manufacture) for smooth production flow. If the employees feel secure they will increase their productivity. 2. It may come due to raw material. semifinish product and finish product. If the R&D department any deviation from actual quality in the product the immediately take corrective action. It may come due to labour inefficiency. They provide hand gloves. Safety program:The company believes that workers are the asset of the organization. The most important thing is that it has a certification of ISO 9001 and ISO 14000. shoes etc.if any vendor fails to supply the particular raw material within the specific time for 2-3 times the company change the vendors.OGANISATIONAL STUDY AT KS&DL Inventory Management System: It has already implemented JIT (Just In Time) technique for inventory management. They trained their employees for fire extinguishing activity. The deviation come into existence due to various relation:- 1. CMR Center For Business Studies Page 40 . It may come due to machine problem. The sample then send to R&D department from shop floor. 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. Quality Control:The quality control department take sample from raw material. helmet. 3. OGANISATIONAL STUDY AT KS&DL PRODUCTION DEPARTMENT STRUCTURE OF PRODUCTION DEPARTMENT General Manager Senior Manager Manager Manager Manager Deputy Manager Works Manager Senior Engineer Engineer Workers CMR Center For Business Studies Page 41 . The role of each branch is to ensure that sales activities coming under their control. CMR Center For Business Studies Page 42 . Jaipur. Bangalore 2. Mumbai 5. Jullundur ORG: Operational Research Group report main source of marketing research private agency which study the competitors consumer demand. Vijayawade. Ahmedabad. There are depots at various places of the country which are controlled by seven branches. Raichur Madras. Cochin Hyderabad. Hyderabad 4. Patna. Chennai 3. Pune Cuttack. Madurai. Gauhati Delhi. Delhi Depots Hubli. market etc that generates the report. Branch 1.3 MARKETING DEPARTMENT: The company main products are soaps & detergents which are sold in different parts of India. Salem.OGANISATIONAL STUDY AT KS&DL 4. Kolkatta 6. Ananchapur Bhiwandi. (HYD) PM(Det& PM(Det& Agb) Agb) PM(CFGS) PM(CFGS) M(MRIS) M(MRIS) M (S) M (S) CMR Center For Business Studies Page 43 . (CHE).OGANISATIONAL STUDY AT KS&DL ORGANISATION CHART OF MARKETING DEPARTMENT Chairmen MD GM(MKTG DGM(MKTG) AGM (Adv &Soaps) AGM (Adv &Soaps) AGM(BB). AGM(BB).(HYD) (CHE). The stockiest sells to various retailers hence it reaches to the consumers. CHANNEL DISTRIBUTION: Manufacture (KSDL) Agents Stockiest (Wholesalers) Retailer Consumers CMR Center For Business Studies Page 44 .OGANISATIONAL STUDY AT KS&DL AM (Mktg) AM AM (CFGS) (CFGS) Off (CFGS) Off (CFGS) AM AM (Mktg) (Mktg) AM AM (MRIS) (MRIS) AM (S) AM (S) AM(A) Off (S) Off (S) Off (A) Jr Off Jr Off Jr Off Jr Off Jr Off Jr Off Jr Off Sr Asst Sr Asst Jr Asst Jr Asst Sr Asst Sr Asst Jr Asst Jr Asst Sr Asst Sr Asst Jr Asst Jr Asst Sr Asst Jr Asst Jr Asst CHANNELS OF DISTRIBUTION: KSDL manufactures their products i. soaps & detergents. After this sent to various distribution points through agents.e. So that the consumer can be position to understand its components. EXPORTS: KSDL export their products to different parts of world they are: Australia Berlin Canada Czechoslovakia France Germany Italy Kenya Malaysia Saudi Arabia Singapore Africa Srilanka USA Japan UK Taiwan Holland Well over a century ago. Created then. To this day Mysore Sandal Soap still enjoys the distinction of being in use in the Royal Palaces of the U.K. Mysore sandalwood oil. it ensures that there is proper description of their product & its distinct features. as now. a Company was formed in India by the Maharaja of Mysore. Queen Victoria's favoured skin care product. from the finest. and Sir Alfred Chatterton. CMR Center For Business Studies Page 45 .OGANISATIONAL STUDY AT KS&DL As the company markets their products. Queen Victoria. purest. From this Company a legend was born-'Mysore Sandal Soap'. vegetable CMR Center For Business Studies Page 46 . Based in Mysore. and now. South East Asian countries. These products are the genuine original creation. Our supplier's Sandalwood oil products are exported to well established markets in the UAE. Kuwait. The Sandalwood Soap Company Ltd is proud to introduce these pure natural sandalwood soap and talcum powder products to the U. Bahrain. North America and South America.K. is the true inheritor of India's golden sandalwood legacy. totally natural. Saudi Arabia. Please do not confuse these products with synthetic 'chemical laden imitators'.OGANISATIONAL STUDY AT KS&DL 'Mysore Sandal Soap'. and are the largest producers of pure sandalwood oil and sandalwood soap in the world. the makers of this natural soap have over a centuries experience in this field. Qatar. 3. According to this data the experience persons are preparing sales budget. card board boxes synthetic covers. MARKETING STRATIGY OF KS&DL:The main strategy of marketing department is sale maximization. Queen Cleopatra is said to have charmed Anthony with both her beauty. FUNCTIONS OF MARKETING DEPARTMENT: 1. 5. Sales & Promotion: the drawback is poor advertising & sales promotion. At present co. Market Share: The KSDL production strategy is more expensive when compared to other product. In different depots they find out which product is moving very frequently and more demanded in the market. and with the magnificent day long fresh fragrance of sandalwood oil. In anticipating sale budget different depots they choose.outdoor media ( banner. Sandalwood oil has been renowned for its cleansing and skincare enhancing properties since the dawn of Egyptian times.). road side hording)etc. 6. Marketing Mix : it is the policy adopted by the manufactures to get success in the field of marketing 2. magazine. They use to prepare sales budget. Distribution Policy: The manufactured product of KSDL is supplier to the factory depots.It use basically they use 3 media for promotion that is electronic media (like tv. Product Policy: It includes both the turns of development & improvement produced and existing products. Packing: Uses different materials for different products. 4.OGANISATIONAL STUDY AT KS&DL based with no animal derivatives. CMR Center For Business Studies Page 47 . This all totally done by KSDL both marketing & R & D department.print media news (paper. PROMOTION:. and of course made with pure 'Mysore Sandalwood Oil'.radio). There are various depots in various states & stored there. holding market share of 18% in south India & 8% throughout India basis for premium soaps. Marketing mix Elements of Mysore Sandal Product • • • Mysore Sandal does not have much variety but it ensure good quality. in Bangalore. CMR Center For Business Studies Page 48 . As the sandal wood oil price is increasing day by day ( 35 lakh/ton) they are not able to minimize the production cost. KSDL has its main unit in Mysore and one branch is also available in Rajajinagar. Advertisements are also very traditional type. Talcum Powder Agarbatti PRICE • • Mysore Sandal soap is available in 75gms and its prize is Rs. It is also available in family pack which carries three normal size soap and its price is Rs. PLACE • • Mysore Sandal has few outlets which are specifically for Mysore. 72. As it is a government holding company they cannot spent huge money on advertise ment like other MNC’s. In sales process 2 sales process are involved one is primary sale and secondary sale. So the product not so popular in northern part of our country.23. PROMOTION • • Mysore Sandal soap does not do much promotion.OGANISATIONAL STUDY AT KS&DL Basically it is noticed that the Mysore sandal soap is acquiring 80% of total sale. They introduce some promotional offer during festivals and introduced some price off promotion on bulk purchasing. It is concerned with managerial decision making. it also comply with requirements for central excise & income tax purposes.OGANISATIONAL STUDY AT KS&DL Outlets • Mysore sandal is available only in few retail shops and medical shops. This department is concerned with proper utilization of cash. It has abundant of function which can be enumerated as follows: • • • • • • • • • Effective funds management which is inverted in beneficial projects. Wealth Maximization. It identifies the source of finance where to borrow i. CMR Center For Business Studies Page 49 . AUDIT DEPARTMENT: KSDL audit wing is headed by interval auditor. IRBI. Pricing of raw materials & valuation of stores. Auditing is vital for the company as it facilitates verifying of all the books of a/c by trial balance.e. Corporation bank etc. After the Auditor’s monitor everything they give report which is helpful to the company. Preparation of cash budgets. Sales And Promotion For motivating the consumer KSDL is using print media and television FINANCE. Profit Maximization. ACCOUNTS. AUDITING DEPARTMENTS FINANCE: It is the life blood of every organization. ICICI. Decision making regarding fixing of cash account. COSTING: When a company does costing it ensures proper fixation of selling price of the product. Systematic approach to working capital management. Obtaining trade credit. cost control it also help in taking decision. IDBI. To protect financial interest of the company. Officer SR. SR.(1) JR.Officer JR. When doing Research they have a target which they get benefits & it enables the company to forecast the future. JR.(1) SR.Asst. SR.Asst.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: Managing Director General Manager (Finance) DGM (F) AGM (F) / A/Cs/Audit/CE I/C (1) AM (PR&PF) A/Cs Bills Section Costing Section Supr(A/C’s) (V)-2 PA to GM (F) SR.Asst.Asst. committed to developing products that keep place with customers changing needs & perceptive.Asst. Both departments are headed by highly qualified professionals. RESEARCH DEVELOPMENT & QUALITY CONTROL KSDL its full fledged quality control & R&D single mindedly pursue quality enhancement.Asst. JR.Asst.Asst.Officers (3) Supr(costing) (3) Vacant SR.Officers JR. Chief Mangaer (V) JR.Asst CE JR. AIMS: CMR Center For Business Studies Page 50 .Asst. KSDL as 2 QC division Raw material QC division Production QC division OBJECTIVES OF R&D: • • • • • • • • To improve the existing production 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 maintain standard weight . Cost reduction Alternative raw materials Slow moving & non moving inventory reduction Technical advice to the management.size & finishing. Product process improvement.OGANISATIONAL STUDY AT KS&DL • • • • • • Product process development. Quality plays a very important role in KSDL majority of the products are consumer goods. CHART:- CMR Center For Business Studies Page 51 . So it must satisfy the consumer expectation. To retain perfumery content throughout it uses. KS & DL Bangalore Division 2. Oil & Fats Stores 5. Shimoga Division STORAGE DEPARTMENT: In KSDL there are about 8 stores namely: 1. Mysore Division 3. Engineering Goods 3. Fuel & Serviceable stores Types of stores: • Perfumery stores Page 52 CMR Center For Business Studies . Detergent finished goods stores 6. Packing Materials 2. Perfumery Stores 4.OGANISATIONAL STUDY AT KS&DL AGM (R&D) MGR (R&D) Assistant Manager Junior Officer S R Assistant DIVISION OF KSDL: 3 manufacturing units all over India 1. Packing material stores. WELFARE DEPARTMENT: KSDL welfare department can be classified into 3 sections namely. Non statutory a) Statutory : KSDL welfare association is based on employees contributions. Materials are issued on the basis of FIFO. Finished goods stores These stores play a great role in maintaining of required stock.OGANISATIONAL STUDY AT KS&DL • • • Chemical stores. It also facilitates maintenance of suitable store organization structure. • • • Canteen facility First aid Provident Fund • • • • c) Mutual : • • • • • Employees get 3 pair of uniform at every 2 years & a Pair of shoes for every year Cultural Recreations Leave facilities Employees Co-operative society which give loan on credit Employees house building society workers education class conducted by the central board Inspection of fittings Dust nuisance Toxic gas nuisance b) Voluntary benefit : WELFARE MEASURES:- CMR Center For Business Studies Page 53 . voluntary 3. interest carved. It monitors the procedures of the receipt. Oil & Fats Stores. 1. Statutory 2. settlement of accounts & accidents. 5) Workers education scheme. MATERIALS DEPARTMENT: Materials are obtained at right time. The areas of maintenance are: • • • • • • • Mechanical Maintenance Electrical Maintenance Civil Maintenance Reduction of overload Cost Reduction Greater Safety of equipment & workers Delivery schedule is maintained. Objectives: • • • • • Maintaining continuity of flow of materials Effective control of inventories Coordination Growth of the organization Maintaining ethical organization source &at right CMR Center For Business Studies Page 54 . 6) Administration of safety measures. right quality at right place from right cost which leads smooth flow of production. 3) Administration of labour law. 2) First aid and medical facility. 7) Employee counciling . Proper maintenance results to: This department contributes also working progress of the company.OGANISATIONAL STUDY AT KS&DL 1) Maintenance of canteen. 4) Promotion of cultural activity. MAINTENANCE DEPARTMENT: Effective maintenance is the goal of the company. It is goods Receive Report. receive committee). After receving this the production department pace order to the vendors.OGANISATIONAL STUDY AT KS&DL It has been divided into 5 sections: • • • • • • • Oil & fats section Perfumery & aromatically section Packing materials section Chemical section Miscellaneous & Engineering stores section. The committee approved the purchase order. The concern person used to take sample randomly from the order received and check the quality. Disposals Centralised finished goods stores. 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.if the quality is not matched with the specification the order get return. Then other department check out the present inventory and send the required inventory to the production department. CMR Center For Business Studies Page 55 . After receiveing the order the GRR report is prepared. production. To decide to place order there is a committee called PRRC(Purchase. OGANISATIONAL STUDY AT KS&DL Dy Gen Manager (MTLS & Strs) AGM (MTLS) AGM (Strs) MGR (MTLS) MGR (Strs) Assistant Assistant Junior officer Junior officer Senior Assistant Senior Assistant Junior Assistant Junior Assistant Attainder Attainder CMR Center For Business Studies Page 56 . As it is common in big organizations. technology and products. he also controversies between departments which can be solved by discussions and by conducting some interactive programs. the kind of people in the organization. the external environmental influence etc. this may be due to their experience in the place of work. Strategy formulation entails a search for a different frame of reference. There are two types of paradigms that apply to management. 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. STRATEGY: Strategic planning is about asking questions. structure. meetings are held to seek opinions of top management & various department manager & the decisions are taken & implemented.OGANISATIONAL STUDY AT KS&DL SKILLS: The term “skills” includes those characteristics. However every person according to his traits possesses his own talents and special characters. Decision-making is co-ordinate & done with wide consultations of top management of department manager’s consultation which gives best possible gains. the management systems. STYLE OF MANAGEMENT: Decision-making is centralized with the head office. more than attempting to answer them. Hence when organization makes a strategic shift it becomes necessary to consciously build new skills. namely the business and the organizational or managerial paradigms. Employee’s skills in an organization will be unique. which are relevant for their work. The business paradigms define a company’s position in the market place with respect to customers. which people use to describe a company. Decision-making depends on the authority & responsibility conferred on each individual & thus it’s distributed based on designation & position held. Organization have strengths in a number of area but their key strengths are dominant skills are few. the top management style. CMR Center For Business Studies Page 57 . and the similarity may also due to influence of the similar culture. It is the quest for a new business paradigm. This cannot be generalized skill among them. Authority is given to unit incharge to take decision in day-to-day minor matters & other urgent matters. In important matters. The employees of KS&DL have different skill. the company adopts to achieve its objectives in a competitive situation. 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. MANAGEMENT INFORMATION SYSTEMS DEPARTMETN: A.managed stores department for each of the three divisions viz. Objectives. Time rate system is followed to employees.OGANISATIONAL STUDY AT KS&DL Strategy is a choice of direction and action. B. 2. Introduction of cost effective substitutes without compromising on quality Development of new perfumes. CMR Center For Business Studies Page 58 . INVENTORY CONTROL SYSTEM: STORES DEPARTMENT: KS&DL has well. creams and shampoos. Government fixes the remuneration to executives E. D. there are separate miscellaneous stores department for raw material. 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. detergent & fatty acid division in the factory. • • • • Their future plans include launching of new products. Agarbathies. Costing System: Process costing. finished goods and tools. C. The cost control exercise is in consolidation. soaps. FIFO method for issuing materials. Inventory Control System ABC analysis for stock control. Any statements on overall of functional strategy that the company may wish to share are: Improvement in the existing products. Computerized accounting system for stores. Remuneration System: 1. soaps detergents. To fulfill its entire legal obligation in terms of employment payments and benefits practices. bonus. 4.00PM-10PM Rs. KS&DL follow ethical employment standards wherever it operates with a goal in mind company guarantees. Canteen facility CMR Center For Business Studies Page 59 . 3.400 for executives. Rs. 2. employee’s contribution to PF. holiday pay. Allowances: The gross salary includes basic pay and 1. Assuring the availability of raw material at right quantity.00PM 2nd Shift 2. Benefits provided by KSDL: Monetary benefits are basic wage allowances.350 to 1000 per year for an employee. City compensatory allowance 5% of basic pay.00PM 6. 3. Achieving maximum efficiency in production and sales with least investment in inventory. Family Travel Allowance: Rs. Fringe benefits like housing.15 paid 3rd Shift 10. STAFF: As any employer. education to children. DA 2.P who resides in rented house. Shift allowance: 3 shifts. 1st Shift: 6. HRA 20% of B. Conveyance allowance.00PM-6. Maintenance of economical and uninterrupted flow of production activities and finally to ensure minimum blockage. Leave facilities: 18 days privilege leave. Adequate and timely training for every one for the job for which they are employed. 5. 7 days casual. medical facility.OGANISATIONAL STUDY AT KS&DL • • • .00AM – 2. food canteen. recreation etc. Career advancement related to performance and experience.595 per month for workers & Rs. Employee state insurance. pension gravity etc. 15 days sick leaves 7. 1. The core values are shaped around the belief that enterprises exist to serve society. Innovation and creativity. Trust and team spirit. Bonus: It is declared within 8 months after closing the accounts the management has declared 20% bonus for the current year 9. 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. and guide strategy formulation and purposive action.F Medical benefit: Workmen card: Domiciliary Rs. In terms of this belief. An unwavering commitment to integrity. 400/-per month is given along with wages & Rs.150000/-per annum for hospitalization. Cost and time-consciousness. SHARED VALUES: Values: Values refer to the institutional standards of behavior that strengthen commitment to the vision. Increments 10. ethical conduct. teamwork and abiding concern for stakeholders are at the heart of your company’s value system.OGANISATIONAL STUDY AT KS&DL 8. Respect for individuals. CMR Center For Business Studies Page 60 . Integrity health and ethics.P. • • • • • • • Customer satisfaction Committed to total quality. gives actual cost over & above the entitlement for major diseases. Office card: the co. Thus company has embraced an extended role of trusteeship that reaches beyond the assets reflected in the balance sheet to encompass societal assets. meritocracy. Diversified product range keeps the company stable. Needs updating with times in terms of plant and machinery. An ISO 14001 company. • • • • • • • A very good dealership network.2 growths over 40 years against the product of 80%. The company has modern manufacturing facility with maximum capacity. which produce 75% of world’s sandalwood oil. which commits to reserve the natural environment in the production of its quality products to the satisfaction of its customers. debts with many dealers turning bad. CMR Center For Business Studies Page 61 . Unskilled labor coupled with excess labor hampers profitability. which ensures that the products reach every loop and corner A very little competition for its major products sandal soap. Two sandalwood oil factories in Shimoga and Mysore. Abundant availability of raw materials. Due to lack of direct sales. R&D is not effective in as much as it has not made any brake through in new products.OGANISATIONAL STUDY AT KS&DL SWOT ANALYSIS STRENGTHS • • The factory is located in the heart of the city & has all infrastructure facilities. Defective marketing strategy lacks effective advertising and publicity. foreign technology to suit indigenous condition due to government participation. it has very few offer to lower middle class. brand loyalty of consumers and has 90% of sandal soap market. WEAKNESS: • • • • • • • • • • Slow growth rate 6. Power intensive: dependent on power may miscarriage here results in under utilization of capacity. The large proportion of the target area is upper middle class and upper class people. It has only 8% of the total detergent market share. Low turn over resulting in low profits. An ISO 9002 certified company has its own brand image. little financial crisis with backup from government. Good export market should tap foreign market vigorously.OGANISATIONAL STUDY AT KS&DL OPPORTUNITIES: 1. 3. 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. 4. Competition from other global leaders like HLL. To protect the financial interest of the company. THREATS: 1. Government interference may reduce growth potential. As the company depends on forests for its main raw materials makes the company to find chemical alternative to sandalwood. 3. 2. 2. At present it has Good raw material sources to enhance production. CMR Center For Business Studies Page 62 . 88 16.85 Sales (Rs.466 1.08 37.63 395 588.095 162. 17.88 206 578.85 PROFIT & LOSS ACCOUNT FOR THE YEAR CMR Center For Business Studies Page 63 .53 lakhs as against Rs.29 7097 13.006.14.247.19 --. In lakhs) SI No 01 02 03 04 05 06 Class of Goods 2008 – 2009 2007 – 2008 Soaps Detergents Sandal wood oil Agarbathies Talcum Powder Other TOTAL Quantity in Value Quantity in Value M tons M tons 7555 14.939.552.939. 16.OGANISATIONAL STUDY AT KS&DL ANNUAL REPORT OF KSDL Operational performance Production :Total – Rs.38 2813 914.808.497 1.74 Net = Rs. 14.536 Gross = Rs. 19. 14256. 16.810 2814.661 158.552.65 170 262.198 2007 – 08 6452.96 2007 577.20 lakhs as against Rs.37 --28.77 --336.460.006.917 1871.54 --28.86 lakhs Actual production in metric tons SI No 01 02 03 04 05 Sales :Class of Goods Soaps Detergents Sandal wood oil Agarbathies Talcum Powder 2008 – 09 7199.61 181 323.068 245.152 208.19 lakhs as against Rs. 43.08.038 1. The profit for the year before tax (EBT) has been Rs.78.291 12.989 1.14.03.03.261 11.328 7.53.837 1.93.05.02.828 2.797 1.57. INCOME Sales Less: Excise duty Net sales Other income Increase/(-) Decrease in stock EXPENDITURE Materials Consumed (include trading items) Other Expenditure Depreciation Operating Profit /Loss Less: Interest and Finance Charges PROFIT BEFORE TAX Less: Provision for Taxation (i) Current Tax (ii) Fringe Benefit Tax Deferred Tax Asset PROFIT AFTER TAX Prior Period Income /(-) Expenditure 1.68.19.129 The Company earned EBIT (operating profit) of Rs.68.43. 1.40.541 AMOUNT Rs.910 39.69.74.76.23.03.77.368 16.15. 13.84.19.27.03.4.00.42. The Net Profit (after providing tax) carried over to Balance Sheet was Rs.40.58.540.000 21.250 72.54.28.479 1.85. BALANCE SHEET AS ON 31ST MARCH 2009 CMR Center For Business Studies Page 64 .66.01.50.213 1.47.61.146.OGANISATIONAL STUDY AT KS&DL ENDED 31ST MARCH 2009 PARTICULARS Rs.70.26.609 801928343 73.294.80.39.041 26.318 11.088 Profit brought forward previous year Profit Carried to Balance Sheet 13.531 6.69.33.44.06.59.70.37. 4. 35.536 8.548 40.56.555 24. Profit & loss Account 10.13.09.640 ----- 30.550 2.57.06.80.82.19.03.51.00.67.77.354 63.65.490 -------- CMR Center For Business Studies Page 65 .325 100 3.60.972 55.233 1.822 14.52.365 16.74. Share holders Fund: (a) Share Capital (b) Reserves & Surplus 2.005 43.75.65.560 45.74.129 31.670 33.72.66.63.07.910 21.85.640 3.55.84.97.436 10.23.20.25.11.52.599 6.640 47.43.866 Rs.99.44.00.89.504 19.618 25.60.70. SOURCES OF FUND: 1. 31.03. Loan Fund: (a) Secured Loan (b) Unsecured Loans TOTAL (b) Net Block 2.35.794 20.16.587 29.52.12.29.46.07.Deferred Tax Assets 4.21.72.21.000 26. Rs.000 1.16.63.55.00. 31/03/2008 Rs.760 100 5.61.46.013 5.66.32.08.04.21.49.000 91. Miscellaneous Expenditure 6.82.423 10.000 ---- 1.608 8.04.00.112 77.39.OGANISATIONAL STUDY AT KS&DL PARICULARS 31/03/2009 Rs. Investment 3.97.54.487 16.90.572 5.87.95.50. Current assets Loans & Advances (a) Inventories (b) Sundry Debtors (c) Cash & Bank Balance (d) Loan & Advance (e) Investment In gratuity trust Less: Current Liabilities & Provisions (i) Liabilities (ii) Provision Net current assets 5.49. 20.013 FINDINGS: ♦It is a company wholly owned by government. CMR Center For Business Studies Page 66 .OGANISATIONAL STUDY AT KS&DL Total 77. so it has to follow the rules made by the government.84.599 55.54.08. ♦Consumer awareness of its products is very less except for Mysore Sandal soap. ♦Its production is based on old technology. ♦Recruitment in the company has been stopped since 1988 due to some circumstances and recruitments are taking place only in some department. 8.. CMR Center For Business Studies Page 67 . Thus the R&D should work effectively and achieve the break-through in new products and can make the company to earn more profits. ♦There is mismatch in production & sales activity. SUGGESTION&RECMENDATIONS KSDL has a wide variety of products but people are unaware of many products like Agarbathi. 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.OGANISATIONAL STUDY AT KS&DL ♦The company is under utilizing its capacity. which leads to more wastes in the production process. The management should design Training and Development programmes and Career Development programmes and identify the skills or knowledge. Detergents. Baby soaps etc. as its marketing is very weak. ♦Its products are not available easily in district places of states other than Karnataka. Its trademark is “Sharabha”. the slogan stands as “Natural products with exotic fragrance”. I had a great time working on the project. CMR Center For Business Studies Page 68 . They are not able to establish themselves as market leaders due to various reasons such as extensive work force. lack of proper distribution network. cosmetics. Structure: I got to know how decisions are communicated. The way in which the departments are inter-linked and coordinated. Even though they have demand for their products in both domestic as well as international market. The training has exposed me to many facts of an organization and also helped me to gain practical knowledge. Mostly all the concepts and theories. non-utilization of installed capacities of manufacturing. which will go a long way in the horizon of our career. toilet soaps. now it has independent units for manufacturing sandalwood oils. detergents. medical facilities. motivation classes and extracurricular activities. are applicable practically. The way in which departments are classifieds on the basis of their functioning. as it gives insights into the working environment of an organization. incense sticks and industrial products. the flow of decision process. The functions of each departments and its relevance. incentives and extensive care is taken by providing facilities such as canteen. competitions of various soaps and detergents and lack of timely decisions. The overall study of the organization reveals that the company has grown tremendously since its incorporation from 1918. washing soaps. The company has an effective human resources department where in the employees are given excellent packages. The company is a leading sandalwood soap Manufacturer in the country. I became more aware of the soap industry and the role played by KSDL.OGANISATIONAL STUDY AT KS&DL LEARNING EXPERIENCE The learning experience gained by me during the in-plant training was very much practical oriented. lack of expenditure in the areas of advertisements and publicity. which I studied in the class. The initially named Government Soap Factory was renamed as Karnataka Soaps and Detergents Ltd in 1st October 1980. how the training needs are satisfied to the employees of different grades. The different on-job and off-job training given to the employees. How the production process is planned and worked out. System: System plays an important role of supporting and facilitating various activities that are carried out within the organization. CMR Center For Business Studies Page 69 . bottom up management. Implant certain ideas. disciplinary actions are taken against the employee’s unity. Supply Chain Management is one of the strategies adopted by KSDL. Strategy: Through strategy. changes in certain ideas. How self managed teams perform to achieve the targets set by the management. I found how strategies were formulated to overcome the rigorous competition. methods. The company motivates employees through promotion. Style: Through style. etc. changes in certain policies. transfers and few fringe benefits etc.OGANISATIONAL STUDY AT KS&DL Skills: Through skills. It served an opportunity to integrate practical experience with the theoretical concepts and to understand functional aspects of the various departments in the organization. misconduct as well as the poor performance. I got to know how decisions flow from top to bottom in KSDL. Overall the learning experience was quite satisfactory which enabled me to experience a slice of the real and ruthless industry. etc. Strategy is very much essential for the company to survive in the market. malpractices. KSDL adopts latest system. The theory was the base and this inplant training help I relate to reality. EXPOSURE TO THE COMPANY Related to HRM The essence of the company is to appraise the performances of the employees and their achievements. through which they are able to reduce the cost of production and increase profitability. Few things which are advantageous theoretically will not be advantageous in practical such as decisions. It provided insight knowledge particularly to view the large scale production heavy equipment and machinery used for production purposes. The Government through the IAS cadre purely represents the Board of Directors. Related to Production Training served me to understand that production department is the nerve center of all business activities. proprietary technology. 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). Thus the training gave a unique golden opportunity to understand practically about the management operation better in KARNATAKA SOAPS AND DETERGENT LIMITED. Chairman and other superiors. 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. It made easier to know working condition of the employees at different levels under different shift timing. brand loyalty. It helped to know major strengths like same recognition.OGANISATIONAL STUDY AT KS&DL The company recruits employees through employment exchange. It also made me to visualize the safety facilities provided during the production function. skilled of employees. 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. CMR Center For Business Studies Page 70 . The production method followed is continuous.