Final Project (2) - Copy

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ORGANISATIONAL STUDY AT KS & DL

INTRODUCTION

INTRODUCTION

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His Highness, Nalwadi Krishnaraja Wodeyar, the benevolent,progressive Maharaja of Mysore, proactively led the State of Mysore

to modernization and development. Importance to education,technology and establishment of modern industries were among hispriorities. His Highness laid a firm foundation for the tremendousindustrialization that Karnataka State has achieved today. He wasthe one who extended an invitation to Hirachand-Lalchand to set upthe prestigious Hindustan Aeronautics in Karnataka and encouragedhim to produce aircrafts by offering the land absolutely free, which isnetworthy.

When his Highness visited the Forest Department at Sankey

Road in 1916, he noticed heaps of Sandalwood trees lying in thepremises, and a thought struck him as to why Sandalwood oil shouldnot be extracted from those trees.

He then discussed this idea with the then Diwan Sir M.Visvesvaraya and Sri Alfred Chatterton, the first Director ofIndustries and Commerce of erstwhile State of Mysore and preparedan Action Plan. Scientists from the Indian Institute of Science madefirst attempt to extract Sandalwood oil from pieces of Sandalwood. The Sandalwood oil extraction project succeeded under the

leadership Prof. Sudborough and Prof. Waltson. And, the fragrantSandalwood oil was introduced to the world at large by the thenMysore State.

Sandalwood oil joined the ranks of the world-famous silk, gold,spices and coffee from the State of Mysore and the prefix Mysorebecame the brand name viz., Mysore Sandal, Mysore Silk, etc. Thissweat refreshing fragrance of the wood soon spread to the nook andcorner of the world and earned international eminence. After thesuccessful experiment of Sandalwood oil extraction, a Sandalwoodoil factory was started in the 1916 at the Sankey Tank,

Malleshwaram, which was later shifted to Mysore in 1917.

However, since a sizeable quantity of Sandalwood trees wasfounded in the Malnad forest near Shimoga and Chikmagalur,another Sandalwood oil factory as also established in 1914 on thebanks of the Thunga River at Shimoga.

Meanwhile in 1918 a foreign guest presented His Highness, theMaharaja of Mysore, with a rare gift-a pack of soaps made using theSandalwood oil produced in our country.

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The thought as to why the production of soaps utilizingSandalwood oil should not be undertaken in the State of Mysorestarted nagging the Maharaja. Then Sri S.G.Shastry was the highly

qualified industrial Chemist, was sent to London for an advancedtraining on soap and perfumery technology.

On his return, Sri Shastry produced the first indigenous MysoreSandal Soap through sheer perseverance and research. The soap,with its unique product design and shape, contained naturalSandalwood oil as the base fragrance along with natural exotichomogenous blends and essential oils, consisting of vetivert,patchouli, geranium, palm, rosa, etc., and launched it in market.Thus Mysore Sandal Soap took birth in the year 1918. The MysoreSandal Soap produced is the best ever in the global market with aunique product design and Euro Plus FDA standards, even today.

The Mysore Sandalwood Oil and Mysore Sandalwood Soapproduced by KS&DL was accredited with Geographical IndicationRegistry on 30.1.2006 as the Intellectual Property of India as per theGeographical Indication of Goods (Registration and Protection) Act,1999.

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PART-A

Industry Profile

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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

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taken in London. The world consumption of soap in 1884A.D. was

said to be 2 lakh tonnes p.a.

HISTORY OF THE SOAP:

Soap manufacturing was started in North America. Some

American companies with well known names were started 200 years

ago. During middle age soap was made at various places in Italy,

France, England & other countries. France became famous & many

small factories were established there.

In India the first soap industry was established by North West

soap company in1897 at Meerat following the Swadeshi movement.

From 1905 onwards few more factories were setup.

They are,

Mysore soap factory at Bangalore

Godrej soap at Bombay

Bengal chemicals

Tata oil mills

1930 lever brothers company

THE INDIAN SOAP INDUSTRY SCENARIO:

The Indian soap industry has long been dominated by hand

full of companies such as:

1. Hindustan levers limited.

2. Tata oil mills (taken over by HLL)

3. Godrej soaps private limited.

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The Indian soap industry continued to flourish very well

until 1967-68, but began to stagnate & soon it started to recover &

experienced a short upswing in 1974. This increase in demand can

be attributed due to;

1. Growth of population.

2. Income & consumption increase.

3. Increase in urbanization.

4. Growth in degree of personal hygiene.

Soap manufacture has 2 classifications, organized and unorganizedsectors. KSDL comes under organized sector.

PRESENT STATUS:

Market scenario:

India is the ideal market for cleaning products. The countrys

per capita consumption of detergent powders & bars stands at 1.6kg

& soaps at543Gm. Hindustan liver, which towers over the cleaning

business, sells in all over the cleaning business but the tiniest of

Indian settlements.

The 7.4lakhs tons per annum soap market in India in

crawling along at 4%. The hope lies in raising Rupee worth, the

potential for which is high because the Indian soap market is pseudo

in nature & it is amazingly complex being segmented not only on the

basis of price benefits, but even a range of emotions within thatoutlining framework.

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 ofavailability. The demand supply gap for vegetable oil is 1.5 to 2

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lakhs tons & is met through imports. In recent times, caustic soda

and soap ashes in the cheaper varieties of soaps are quite high.

COMPANY PROFILE

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COMPANY PROFILE:

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.

2. Tata Oil Mills (Taken over by HLL )

3. Godrej Soaps Private Limited.

4. Recent entrants include - Colgate Palmolive Ltd.,

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- Proctor & Gamble Ltd.,

- Nirma Soap Works,

The Indian Soaps industry continued to flourish very well until

1967-68, but began to stagnate. Soon it started to recover and

experienced a short upswing in 1974. This increase in demand can

be attributed to:-

1. Growth of population.

2. Income and consumption increase.

3. Increase in urbanization

4. Growth in degree of personal 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 countrys

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

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the world got their exotic spell with a twist of sandal. The worlds

richest sandalwood resource is from one isolated stretch of forests

land in South India that is Karnataka.

The origin of sandalwood and its oil in Karnataka, which is

used in making of Mysore sandal soaps, is well known as Fragrant

Ambassador of India & Sandalwood oil is infact known as Liquid

Gold.

By the Inspiration of His Highness Maharaja of Mysore lateJayachamarajendra 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.

This situation gave rise to start of an industry, which produces

value added products i.e., of Sandalwood oil. His Highness Maharajaof Mysore created this situation as an opportunity by sowing the

seed of the Government Sandalwood Oil Factory, which is the

present KS&DL. The project was shaped with the engineering skills

and expertise of the top level. Late Sir M.Visvesvaraya, the great

Engineer who was the man behind the project.

Todays famous Mysore sandal soaps credit goes to late SriSosale 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. Thefactory was started as a very small unit near K.R.Circle, Bangalore

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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, whichstopped its operations in the year 2000 for want of Natural

Sandalwood.

This factory started at a moderate scale in year 1916. The first

product was washing soap in addition to the toilet soap in the year

1918. The toilet soap of the company was made up of sandal wood

oil.

In 1950 Government decided to expand the factory in two

stages. The first stage of expansion was done to increase the output

to 700 tons per year and was completed in the year 1952 in the old

premises.

The next stage of expansion was implemented in 1954 to meet

growing demand for Mysore sandal soap and for this purpose

Government of India sanctioned license to manufacture 1500 tons of

Soaps and 75 tons of glycerine per year. The expansion project

worth of Rs.21 lakhs includes the shifting of the factory to a newly

laid industrial suburban of Bangalore.

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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 in1916, 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.

COMPETITORS OF KS&DL PRODUCTS AND

SERVICES:-

KS&DL is facing cut-throat competition in national and

international market. Some of its main competitors are:-

M/S. Hindustan Uni Lever Ltd.,

M/S. Godrej Soaps Private Ltd.,

M/S. Proctor& Gamble

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M/S. Wipro

M/S. Nirma Soaps Private Ltd.,

M/S. Jyothi Laboratories

TRADEMARK OF KS & DL:-

The SHARABHA

The carving on the cover is the sharabha, the trademark of KS & DL.

The sharabha is a mythological creation from the puranas

which has a body of a lion and head of elephant, which embodies the

combined virtues of wisdom and strength. It is adopted as an official

emblem of KS& DL to symbolize the philosophy of the company.

The sharabha thus symbolized a power that removes

imperfections and impurities. The maharaja of Mysore as his official

emblem adopted it. And soon took its pride of place as the symbol

of the Government Soap Factory of quality that reflects a standard of

excellence of Karnataka Soaps and Detergent Limited.

SLOGAN:-

NATURAL PRODUCTS WITH EXOTIC FRAGRANCES

KS & DL has a long tradition of maintaining the highest quality

standard, right from the selection of raw materials to processing and

packing of the

end product. The reasons why its products are much in demand

globally and are exported regularly to UAE, Beharen, Saudi-Arabia,

Kuwait, Qatar, South America. The entire toilet soaps of KS & DL are

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made from raw materials of vegetable origin and are totally free

from animal fats.

POLICY OF KS&DL:-

Seek purchase of goods and services from environment

responsible suppliers.

Communicate its environment policy and best practices to all

its employees implications.

Set targets and monitor progress through internal and external

audits.

Reuse and recycle materials wherever possible and minimize

energy consumption and waste.

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 - The factory output rose to 500 M.Tons with the following

modifications.

1. Renovating the whole premises.

2. Installing new boiler soap building plant and drying

chamber.

1954 Received license from Government to manufacture 1500 tons

of soap and 75 tons of glycerine per year.

1957 Factory shifted its operation to Rajajinagar industrial area.

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

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converted into a public sector enterprise and renamed as

Karnataka Soaps & Detergents Limited.

1981 a) Production capacity increased to 6000 tons,

b) Rs.5 Crores Fatty Acid Plant was installed.

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.

2000 ISO-14001 certificate pertaining to environmental

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 inthe premium segment in the south. Whereas in other parts like

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Eastern & Northern markets penetration of KSDL product is relatively

poor, which depends on the companys distribution structure,

stockiest and field personnel strength.

With increased trust on distribution, the company does not

foresee any problems to achieve the projected sales through the

redistribution package.

Further, the policy of Indian Government also sees the public

sector enterprises enter the industry in a large way there by makingthe 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.

AN ISO-9001 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 TQMin the process of soap and detergent, the management took decision

to obtain ISO-9002 by end of March 1999. Accordingly action plan

was drawn and a committee was set up for the purpose during

October 1998 with a mission statement.

The company gives initial training including conducting

employees awareness programme, document quality manual and

quality system procurement.

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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, QualitySystems 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 usedand 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

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ahead in the new millennium. The Company is developing new

products to meet the changing preferences of its customers.

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 thetrue 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 GRAMSMysore Sandal Soap 75, 125Mysore Sandal Classic Soap 75Mysore Sandal Gold Soap 75, 125Mysore Sandal Baby Soap 75Mysore Special Sandal Soap 75Mysore Rose Soap 100

Mysore Sandal Herbal Care Soap 100, 125Mysore Jasmine Soap 100

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Wave Soap 100Mysore lavender Soap 150Mysore Sandal bath tablet 150

Mysore Sandal classic bath

tablet

150

Mysore Jasmine bath tablet 150Mysore Special Sandal tablet 150Mysore Sandal rose tablet 150Mysore Sandal Guest tablet 17

GIFT RANGESBTSJR06 IN 01GOLD SIXER

DETERGENTS

NAME OF THE PRODUCTUNITS IN

GRAMS

Mysore detergent powder 1000Mysore detergent powder 500Mysore detergent Cake 125Mysore detergent cake 250

TALCUM POWDERS

NAME OF THE UNITS IN GRAMS

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PRODUCTMysore Sandal Talc 20, 50, 100, 300Mysore Sandal Baby Talc 100, 200, 400

AGARBATHIES

NAME OF THE PRODUCT

Mysore Sandal Premium

Mysore Sandal RegularMysore RoseNagachampaSuprabhathaMysore JasmineParijataSir M.V.100BodhisattvaVenkateshwaraDurga

AyyappaAlif LailaMeditation

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PRODUCT PROFILE

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

a. Mysore Sandal Soap (75gm,125gm & 150gm)

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b. Mysore Sandal Special Soap (75gm)

c. Mysore Sandal Baby Soap (75gm)

d. Three-In-One Gift Pack (SJR) 3Tabs (150gm Each)

e. Mysore Sandal Gold Soap (125gm)

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f. Mysore Rose Soap (100gm)

g. Six-In-One Gift Pack- 6Tabs (150gm Each)

h. Mysore Sandal Gold sixer 6 Tabs (125gm Each)

i. Mysore Sandal Soap Bath Tablet Trio 3nos. (150gm Each)

j. Mysore Sandal Classic Soap (75gm)

k. Jasmine Bath Soap (75gm)

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l. Mysore Jasmine Soap (100gm)

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 (1kg/2kg)

2. Mysore Detergent Powder (1kg/500gms)

3. Mysore Detergent bar (250gms)

4. Mysore Detergent Cake (125gms/250gms)

AGARBATHIS:

1. Mysore Sandal premium 8. Mysore sandal

2. Mysore Rose 9.Nagachampa

3. Suprabath 10.Mysore Jasmine

4. Parijata 11.Bodhisattva

5. Venkateshwar 12.Durga

6. Ayyappa 13.Alif Laila

7. Chandhana

SANDALWOOD OIL:

In 5ml, 10ml,20ml, 100ml,500ml,2kg,5kg,20kg,and 25kg

packing.

POWDERS:

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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.

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.

OWNERSHIP PATTERN:

Wholly owned by Government of Karnataka.

COMPETITORS INFORMATION AND THEIR MARKET

SHARE:

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HLL 70%

Godrej 4%

Procter & gamble 10%

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:

1. Canteen facility

2. Library

3. Car stand

4. Waiting room

WORK FLOW MODEL:

SILOS

(Silos are closed chambers)

Soaps Noodles

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Container Mixer

Simplex Plodder

It becomes NOODLES

Milling

It becomes soap ribbons

Duplex plodder

Cutting Machine

Cakes are led to

Stamping Machine

Wrapping machine

Led through the conveyor belt

ACHIEVEMENTS/AWARD:

1. Government of Karnataka

Dept of Industries and commerce

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

4. ISO 9001-2000 in the year 1999

5. ISO 14001-2004 in the year 2000

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.

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Improvement in existing products Mysore Sandal classic

improved moisturizers & skin 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.

To attain market leadership.

Introduction of new trade schemes to increase sales.

Aggressive advertisement and publicity as part of sales

promotion.

Reduction in distribution expenses.

Cost-reduction in all areas.

Instant decision making in certain procurement activities.

Timely introduction and implementation of market driven

decisions.

Ensuring effective internal control.

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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 BODs and M.D SECOND LEVEL consisting of Directors of Finance and

Special officers

THIRD LEVEL consisting of senior managers, deputymanagers and officers.

FOURTH LEVEL consisting of clerks, Assistants andAttendees.

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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.

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MBA-MSRCASC

Managing Director

ASST.

MGRMDS

OFFICE

DGMLC/S&V

AGM(SEC)

MGRLEGALCELL

DGMFTD

MGRFTD

DGMPROJEC

T/COMP.CELL

MGR

COMP.CELL

AGM

SOD

DGM

QAD

AGMQAD

MGRQAD-3

DGMR&D

AGM

R&D

MGR

PER

DGMP&M

AGMSE&S/STOR

ES

MGRSP&M-10

DGM

MTLS/STORES

MGRMTLS

MGRSSTORES

DGM PR

GEN MGRMKT/MID

DGMMKT-HO

DGMMUMBAI

MGRMID

MGRSMKT-6

AGM

DL.BR

AGM

KK.BR

AGM

CH.BR

AGM

CFGS

AGM

HY.BR

AGM

BLORE

MGR-04 AGMDPG

MGR-03MGR-01MGR-01

GEN. MGRFINANCE

MGRFIN

MGRPF/PR

MGRCS.OFF

AGMFIN

DGMFIN

GEN .MGR

HRD

AGMSOD

MGRCANT

MGRHRD

32


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KS&DL AT GLANCE:-

Incorporated Name - Karnataka Soaps and Detergents

Limited.

Address - Karnataka Soaps and Detergents Limited

Bangalore Pune High Way

Post Box No.5531, Rajajinagar,

Bangalore 560 055

Ph: 080-3377691/3370469/23371103 to 06

22376922 to 24

Email : Mysorsandal @ vsnl.com

Website : www.mysoresandal.com

Year of Establishment - 1918

Constitution - Wholly owned by Govt. of Karnataka

Undertaking

Management - Govt.of Karnataka nominates/appoints

Board of Directors. Chairman & MD

Renamed - 1980

Trademark - The trademark is SHARABHA. It isthe

Body of lion with the head of an

elephant means blending the

intelligence of lion with strength of an

elephant.

Production range - Toilet soaps, bar soaps,

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Detergent Cakes, Powders, Agarbathies,

Cosmetics,Baby products, Sandalwood

Oil.

Process know how - The facility is a pioneer in the

Manufactures of various soaps and

technology Imported from Italy.

Capacity of the Unit - Licensed capacity is 26,000 metric

tons of Soaps & 10,000 M.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

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PART-B

M c Kinseys 7S Framework

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McKinseys 7S Framework

According to Waterman, organization change is not simply a

matter of structure, although structure is significant variable in the

management of change. Again it is also not a simple relationship

between strategy and structure, although strategy is also a critical

aspect. In their view effective organizational change may be

understood to be a complex relationship between strategy,

structure, system, style, skills & shared values. The first three

elements-strategy, structure &system are considered the

hardware of success. The next four style skills, staff, and shared

values are called the software. The complex relationship is

diagrammatically presented below

While some models of organizational effectiveness go in and out of

fashion, one that has persisted is the McKinsey 7S framework.

Developed in the early 1980s by Tom Peters and Robert Waterman,

two consultants working at the McKinsey & Company consulting firm,

the basic premise of the model is that there are seven internal

aspects of an organization that need to be aligned if it is to be

successful.

The 7S model can be used in a wide variety of situations where analignment perspective is useful, for example to help you:

Improve the performance of a company. Examine the likely effects of future changes within a company. Align departments and processes during a merger or

acquisition. Determine how best to implement a proposed strategy.

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The Seven Elements

The McKinsey 7S model involves seven interdependent factors whichare categorized as either "hard" or "soft" elements:

Hard Elements Soft Elements

Strategy

Structure

Systems

Shared Values

Skills

Style

Staff

"Hard" elements are easier to define or identify and managementcan directly influence them: These are strategy statements;organization charts and reporting lines; and formal processes and ITsystems.

"Soft" elements, on the other hand, can be more difficult to describe,and are less tangible and more influenced by culture. However,these soft elements are as important as the hard elements if the

organization is going to be successful.

The way the model is presented below fig

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Let's look at each of the elements specifically:

Strategy: the plan devised to maintain and buildcompetitive advantage over the competition.

Structure: the way the organization is structuredand who reports to whom.

Systems: the daily activities and procedures thatstaff members engage in to get the job done.

Shared Values: called "superordinate goals" whenthe model was first developed, these are the corevalues of the company that are evidenced in thecorporate culture and the general work ethic.

Style: the style of leadership adopted. Staff: the employees and their general capabilities. Skills: the actual skills and competencies of the

employees working for the company.

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FUNCTIONAL DEPARTENTS OF KS & DL

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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

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HUMAN RESOURCE DEPARTMENT:

ORGANISATION STRUCTURE OF

HRD DEPARTMENT

MBA-MSRCASC

MANAGING DIRECTOR

ASST.GEN.MGR

MGR [HRD]

OFFICER

SENIOR ASSTS

JR. OFFICER

ATTENDER

TIME OFFICE

LWO

CANTEEN

JR.OFFICERS

SR.ASSTS.

ATTENDER

ASST.MGR

JR.OFFICER

SR.ASSTS

Cooks

Helpers

FIRST AID

VMO

SR.ASST.

HELPER

41


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01 M.D Managing Director02 Asst.Gen.Mgr Assistant General Manager

[HRD]03 Mgr [HRD] Manager [HRD]04 Asst.Mgr [Canteen] Assistant Manager [Canteen]05 LWO Labour Welfare Officer06 VMO Visiting Medical Officer07 Officer [HRD] Officer [HRD]08 Jr.Officer [HRD] Junior Officer [HRD]09 Sr.Asst.s Senior Assistants10 Attainder Attainder

11 Cooks Cooks12 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

4. Cordial relationship of Industry

5. Disciplinary matters

6. Performance appraisal

7. Employee safety etc

KEY FUNCTIONS OF THE HRD:-

1) Recruitment and Selection

2) Training and Development

3) Promotion and Transfer4) Wages and salary administration

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5) Performance Appraisal

6) Industrial Relations

7) Disciplinary Action and

8) Welfare Measures

Cordial relation with Trade unions:

KSDL is trying its level best to ensure healthy & cordial

relation with trade unions in all matters regarding industrial disputes

& employee satisfaction.

Personnel management is act as a mother as it ensures

people are treated perfectly well & widening the scope of theemployees.

MAN POWER DETAILS:

GROUP BangaloreSOD

Mysore

Marketingbranches

Duty paidGodownShimoga

Total

Executives 85 07 56 02 150

Supervisors

49 10 15 - 74

Workers 548 30 39 16 633Total 682 47 110 18 857

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 to2.00pm

SecondShift

2.00pm to10.00pm

Third Shift 10.00pm to6.00am

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GeneralShift

7.30am to3.30pm

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 shiftworkers; a sum of Rs.25 and Rs.35 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.

Sick Leave (SL): Workman who avails sick leave

exceeding 3 days at a time should produce medicalcertificate 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.

5. Special Allowance : Paid to Typists, Stenographers,

Asst.Cashiers, and Store Keepers from Rs.55 to Rs.75.

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13. Memento to retiring employee : Rs.2,500 will be paid as

memento to retiring employees.

14. Medical Reimbursement:Benefit to non-ESI employees asum 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 40days.

One month


than 40 days less than 70

days.

2 months


than 70 days less than 100

days.

3 months

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PAY SCALE OF UNIONSED CADRE EMPLOYEES

W.E.F. 01.05.2008 TO 30.04.2013

SI.NO

GroupRevised Pay Scale

01 I 5140-110-5690-140-6390-170-7240-200-

8240II 5250-110-5690-140-6390-170-7240-200-

8240-240-944002 III 5690-140-6390-170-7240-200-8240-240-

9440-280-1084003 IV 5970-140-6390-170-7240-200-8240-240-

9440-280-10840-330-1249004 V 6110-140-6390-170-7240-200-8240-240-

9440-280-10840-330-12490-400-1449005 VI 6390-170-7240-200-8240-240-9440-280-

10840-330-12490-400-14490-500-1599006 VII 7240-200-8240-240-9440-280-10840-330-

12490-400-14490-500-1799007 VIII 8240-240-9440-280-10840-330-12490-400-

14490-500-17990-600-19190

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PAY SCALE OF OFFICERS

W.E.F. 01.07.2008

SI.NO Designation Revised Pay Scale

01 Jr. Officer 10000-100-10500-300-12300-350-

14400-400-16800-450-1815002 Officer 10800-300-12300-350-14400-400-

16800-450-19500-525-2002503 Asst. Manager 14050-350-14400-400-16800-450-

19500-525-22650-600-2505004 Manager 18150-450-19500-525-22650-600-

26250-675-2692505 Asst. Gen.

Manager

20025-525-22650-600-26250-675-

28275

06 Dy. Gen.

Manager

22125-525-22650-600-26250-675-

30300

07 Gen. Manager 24450-600-26250-675-30300-750-

3180008 Director 26250-675-30300-750-34800-850-

36500

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.

6. Leave Rules with encashment benefit.

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7. LTC / FTA.

8. Conveyance Allowance.

9. Education Advance.

10. Festival Advance.11. TA / DA Rules.

12. HBA / Interest Subsidy.

13. Delegation of Powers.

14. Probationers Rules.

15. Annual Increment.

16. Incentive for adopting small family norms.

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.

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:

Eligibility: Is a minimum of five years of service.

Selection: Is done through staff selection committee.

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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 theperformance 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 finalselection.

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:

KSDL as 3 main production plants:

Fatty Acid Plant

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Soap Plant

Detergent Plant

Fatty Acid Plant:The basic raw materials, Oil & fats undergo the splitting &

refining process including hydrogenation at the fatty acid plant.

It is also obtained & used for soap making. The plant has a

capacity to process 10,000mt of oils 1 fat.

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.

KSDLs 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

PRODUCTION DEPARTMENT

STRUCTURE OF PRODUCTION DEPARTMENT

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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

MBA-MSRCASC

Senior Manager

Manager Manager Manager

Deputy Manager

Works Manager

Senior Engineer

Engineer

Workers

General Manager

52


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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

1. Bangalore Hubli, Raichur

2. Chennai Madras, Salem, Madurai, Cochin

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.

ORGANISATION CHART OF MARKETING DEPARTMENT

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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 consumer

CHANNEL DISTRIBUTION:

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 SrilankaBerlin Kenya USACanada Malaysia JapanCzechoslovakia Saudi Arabia UK France Singapore TaiwanGermany Africa HollandFUNCTIONS OF MARKETING DEPARTMENT:

1. Marketing Mix : it is the policy adopted by the manufacturesto get success in the field of marketing

MBA-MSRCASC

Manufacture (KSDL)CFGS

Consumers

Retailer

RD's Stockiest(Wholesalers)

C&FA (Godown)

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It is the life blood of every organization. It is concerned with

managerial decision making. This department is concerned with

proper utilization of cash. It identifies the source of finance where to

borrow i.e. ICICI, IRBI, IDBI, Corporation bank etc.It has abundant of function which can be enumerated as follows:

Effective funds management which is inverted in beneficial

projects.

Decision making regarding fixing of cash account.

Obtaining trade credit.

Profit Maximization.

Wealth Maximization.

Preparation of cash budgets.

Systematic approach to working capital management.

Pricing of raw materials & valuation of stores.

To protect financial interest of the company.

AUDIT DEPARTMENT:

KSDL audit wing is headed by interval auditor. Auditing is

vital for the company as it facilitates verifying of all the books of a/c

by trial balance, it also comply with requirements for central excise

& income tax purposes.

After the Auditors 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.

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KSDL use process costing as the production mechanism is

systematic it involves addition of a lot of ingredient in the

manufacturin

FINANCE DEPARTMENT CHART:

A/Cs C E

MBA-MSRCASC

Managing Director

General Manager (Finance)

DGM F

Bills Section Costing Section

AGM (F) / A/Cs/Audit/CE I/C (1)

Supr(A/Cs)

V -2

JR.Asst.

PA to GM

(F)

Chief Mangaer

V

SR.Asst.

SR.Asst. SR.Asst.

Officer

Supr(costing)JR.Officers (3)

AM PR&PF

JR.Asst.

SR.Asst. SR.Asst.(1)

JR.Asst.

JR.Asst.

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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 productsthat 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:

Product process development.

Product process improvement.

Cost reduction

Alternative raw materials

Slow moving & non moving inventory reduction

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 2QC 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

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DIVISION OF KSDL:

3 manufacturing units all over India

1. KS & DL Bangalore Division

2. Mysore Division 3. Shimoga DivisionSTORAGE DEPARTMENT:

In KSDL there are about 8 stores namely:

1. Packing Materials

2. Engineering Goods

3. Perfumery Stores

4. Oil & Fats Stores

5. Detergent finished goods stores6. Fuel & Serviceable stores

These stores play a great role in maintaining of required stock.

It also facilitates maintenance of suitable store organization

structure. It monitors the procedures of the receipt. Materials are

issued on the basis of FIFO.

WELFARE DEPARTMENT:KSDL welfare department can be classified into 3 sections namely,

1. Statutory

2. voluntary

3. Non statutory

a) Statutory :

KSDL welfare association is based on employeescontributions, interest carved.

Canteen facility

First aid

Provident Fund

b) Voluntary benefit :

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workers education class conducted by the central

board

Inspection of fittings

Dust nuisance

Toxic gas nuisance

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.

MAINTENANCE DEPARTMENT:

Effective maintenance is the goal of the company. The areas of

maintenance are:

Mechanical Maintenance

Electrical Maintenance

Civil Maintenance

Proper maintenance results to:

Reduction of overload

Cost Reduction

Greater Safety of equipment & workers

Delivery schedule is maintained.

This department contributes also working progress of the

company.

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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.

MATERIAL DEPARTMENT ORGANISATION CHART

Objectives:

Maintaining continuity of flow of materials

Effective control of inventories

Coordination

Growth of the organization

Maintaining ethical organization

MBA-MSRCASC

MD

DGM (Mtls

&stores

MANGER

Jr. Officer

AM energy

/ misc

Jr.Asst

Sr.Asst

misc

Sr.Asst

perfumery

Officer che/

oils

Jr.Asst Sr.Asst

oils/ch

Workers

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It has been divided into 5 sections:

Oil & fats section

Perfumery & aromatically section

Packing materials section

Chemical section

Miscellaneous & Engineering stores section

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.

Employees 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.

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STYLE OF MANAGEMENT:

Decision-making is centralized with the head office.

Authority is given to unit in-charge to take decision in day-to-dayminor matters & other urgent matters.

Decision-making depends on the authority & responsibility

conferred on each individual & thus its distributed based on

designation & position held.

In important matters, meetings are held to seek opinions oftop management & various department manager & the decisions are

taken & implemented.

Decision-making is co-ordinate & done with wide consultations

of top management of department managers 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 companysposition in the market place with respect to customers, technology

and products.

Strategy is a choice of direction and action; the company

adopts to achieve its objectives in a competitive situation. Any

statements on overall of functional strategy that the company may

wish to share are:

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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.

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MANAGEMENT INFORMATION SYSTEMS

DEPARTMENT:

A. Accounting System:

Financial statements are prepared under the historical cost

convention on an accrual basis and comply with the accounting

standards refer to sec 211 (3c) of the companies Act 1956.

B. Costing System:

Process costing.

C. Inventory Control System

ABC analysis for stock control.

FIFO method for issuing materials.

Computerized accounting system for stores.

D. Remuneration System:

1. Time rate system is followed to employees.

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.

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Objectives; 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.

Types of stores: Perfumery stores

Chemical stores.

Packing material stores.

Oil & Fats Stores.

Finished goods stores.

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, employees

contribution to PF. Employee state insurance, bonus, pension

gratuity etc.

Fringe benefits like housing, food canteen, education to

children, medical facility, holiday pay, recreation etc.

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Allowances:The gross salary includes basic pay and

1. DA

2. City compensatory allowance 5% of basic pay.

3. HRA 20% of B.P who resides in rented house.

4. Conveyance allowance, Rs.680 per month for workers & Rs.400

for executives.

Family Travel Allowance: Rs.350 to 1000 per year for anemployee.

5. Shift allowance: 3 shifts,

1st Shift: 6-2p.m

2nd Shift 2-10p.m Rs.25 paid

3rd Shift 10pm-6am Security

Rs.35paid.

6. Leave facilities: 18 days privilege leave, 7 days casual. 15 dayssick leaves

7. Canteen facility

8. Bonus: It is declared within 8 months after closing the accounts

the management has declared 20% bonus for the current year

9. Increments

10.P.F

Medical benefit:

Workmen card: Domiciliary Rs, 500/-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:

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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 ofthis 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 companys value system.

Customer satisfaction

Committed to total quality.

Cost and time-consciousness. Innovation and creativity.

Trust and team spirit.

Respect for individuals. Integrity health and ethics.

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PART-C

Swot Analysis

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VISION STATEMENT:-

Keeping pace with globalization, global trends and the

states 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.

MISSION STATEMENT:-

To serve the National economy.

To attain self-reliance.

To promote purity & quality products

To maintain the Brand loyalty of its customers.

To build upon the reputation of Mysore sandal soap based

on pure sandal oil.

OBJECTIVES OF KS & DL: -

To serve the national economy

To attain self reliance

To promote and uphold its image as symbol of traditional

products

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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 worlds sandalwood oil.

WEAKNESS:

Slow growth rate 6.2 growths over 40 years against the product

of 80%.

Power intensive: dependent on power may miscarriage here

results in under utilization of capacity.

High oriented cause due to excessive Labour force.

Low turn over resulting in low profits.

Defective marketing strategy lacks effective advertising and

publicity.

R&D is not effective in as much as it has not made any brake

through in new products.

The large proportion of the target area is upper middle class

and upper class people, it has very few offer to lower middle

class.

It has only 8% of the total detergent market share.

Due to lack of direct sales, debts with many dealers turning

bad.

Unskilled labor coupled with excess labor hampers profitability.

Product lies under utilized.

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OPPORTUNITIES:

The toilet soap and the detergents market is an over

expanding industry and a major company likes KS& DL with itsmanufacturing expertise can call the shots if it reaches peak

manufacturing capacity.

Good export market should tap foreign market vigorously.

At present it has Good raw material sources to enhance

production.

THREATS:

Competition from other global leaders like HLL.

Government interference may reduce growth potential.

As the company depends on forests for its main raw materials

makes the company to find chemical alternative to

sandalwood.

To protect the financial interest of the company.

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PART-D

ANNUAL REPORT

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ANNUAL REPORT OF KSDLOperational performance

Production :-

Total Rs. 17,460.20 lakhs as against Rs. 14256.86 lakhs

SINo

Class of GoodsActual production in metrictons

2008 09 2007 08

01 Soaps 7199.810 6452.91702 Detergents 2814.466 1871.497

03 Sandal wood oil 1.068 1.152

04 Agarbathies 245.095 208.66105 Talcum Powder 162.198 158.536

Sales :-

Gross = Rs. 19,006.53 lakhs as against Rs. 16,247.74Net = Rs. 16,939.19 lakhs as against Rs. 14,552.85

SI Class of

Sales (Rs. In lakhs)

2008 2009 2007 2008

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No Goods Quantity in Mtons

Value Quantity in Mtons

Value

01 Soaps 7555 14,808.29 7097 13,006.38

02 Detergents 2813 914.96 2007

577.54

03 Sandal woodoil

--- 28.37 --- 28.63

04 Agarbathies 395 588.88 206 578.65

05 TalcumPowder

170 262.61 181 323.77

06 Other

TOTAL

--- 336.08

16,939.19

---

37.88

14,552.85

PROFIT & LOSS ACCOUNT FOR THE YEARENDED 31ST MARCH 2009

PARTICULARS AMOUNT

Rs. Rs.INCOME

Sales 1,69,39,19,368

Less: Excise duty 16,02,15,837

Net sales 1,53,37,03,531

Other income 6,06,23,797

1,59,43,27,328

Increase/(-) Decrease in

stock

7,03,74,213

1,66,47,01,541

EXPENDITURE

Materials Consumed(include trading items)

801928343

Other Expenditure 73,44,42,910

Depreciation 39,69,038 1,54,03,40,291

Operating Profit /Loss 12,43,61,250

Less: Interest and Finance

Charges

72,76,261

PROFIT BEFORE TAX 11,70,84,989

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Less: Provision forTaxation(i) Current Tax 1,85,00,000

(ii) Fringe Benefit TaxDeferred Tax Asset

21,28,8282,03,58,318

PROFIT AFTER TAX 11,68,14,479

Prior Period Income /(-)Expenditure

1,40,78,609

Tax of earlier year ----

13,08,93,088

Profit/Loss brought forwardprevious year

13,68,26,041

Profit /Loss Carried toBalance 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 31ST MARCH 2009

PARICULARS 31/03/2009 31/03/2008

Rs. Rs. Rs. Rs.

SOURCES OFFUND:

1. ShareholdersFund:(a) ShareCapital

31,82,21,000 31,82,21,000

(b) Reserves&Surplus

26,77,19,129 ----

2. LoanFund:(a) Secured

Loan

10,72,04,60

8

1,03,65,536

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(b) UnsecuredLoans

8,35,06,504 19,07,11,112 8,99,95,436 10,03,60,972

TOTAL 77,84,20,599 55,54,08,013

APPLICATIO

N OFFUNDS:1. FixedAssets(a) GrossBlock

30,96,23,620

29,61,06,154

Less:Depreciation

23,98,47,860

23,70,50,829

(b) Net Block 6,97,75,760 5,90,55,325

2.Investment 100 100

3.DeferredTax Assets

5,25,04,866 3,21,46,548

4. CurrentassetsLoans &Advances(a)Inventories

40,74,52,487

29,60,12,822

(b) SundryDebtors

16,35,29,618

14,63,46,670

(c) Cash &BankBalance

25,51,32,910

33,43,85,423

(d) Loan &Advance

21,52,57,572

10,49,44,640

(e)InvestmentIn gratuity

trust

5,00,00,000 1,09,13,72,587

3,00,00,000 91,16,89,555

Less:CurrentLiabilities& Provisions(i) Liabilities 24,66,50,79

430,87,52,36

5(ii) Provision 20,49,56,56

045,16,07,354 16,67,70,64

047,55,23,00

5

Net currentassets

63,97,65,233 43,61,66,550

5.Miscellaneo

1,63,74,640 2,80,39,490

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usExpenditure6. Profit &lossAccount

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

Total 77,84,20,599 55,54,08,013

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PART-E

Learning Experience

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LEARNING EXPERIENCE

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 theemployees and their achievements, disciplinary actions are taken

against the employees unity, malpractices, misconduct as well as

the poor performance, etc.

The company motivates employees through promotion, transfers

and few fringe benefits etc.

The company recruits employees through employment exchange.

The training effectively and efficiently envisaged the main purposeof 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.

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It made easier to know working condition of the employees at

different levels under different shift timing.

Related to Financial ManagementTraining 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.

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Findings,

Recommendation &

Suggestions

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FINDINGS:

It is a company wholly owned by government, so it has to

follow the rules made by the government.

The company is under utilizing its capacity.

Its production is based on old technology, which leads to

more wastes in the production process.

Consumer awareness of its products is very less except for

Mysore Sandal soap.

Its products are not available easily in district places of

states other than Karnataka.

There is mismatch in production & sales activity.

Recruitment in the company has been stopped since 1988

due to some circumstances and recruitments are taking

place only some department.

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SUGGESTIONS & RECOMMENDATIONS:

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.

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BIBLIOGRAPHY AND REFERENCES:

i) Website;

www.mysoresandal.com

www.msilonline.com

www.ArticlesFactory.com

www.managementparadise.com

ii) Books and Journals:

KS&DL-Company Brochure

Annual reports KS&DL.

Marketing Management BY Philip Kotler

Financial Management BY I M Pandey
http://www.mysoresandal.com/http://www.msilonline.com/http://www.articlesfactory.com/http://www.managementparadise.com/http://www.mysoresandal.com/http://www.msilonline.com/http://www.articlesfactory.com/http://www.managementparadise.com/

Documents

Final Project (2) - Copy