Professional Documents
Culture Documents
Part-A: Industry Profile
Part-A: Industry Profile
PART-A
Industry Profile
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. 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. 5.
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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 that outlining 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 of availability. The demand supply gap for vegetable oil is 1.5 to 2 lakhs tons & is met through imports. In recent times, caustic soda and soap ashes in the cheaper varieties of soaps are quite high.
Company Profile
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. companies dominate the market. The soap industry in India faces a cutthroat Competition, while multinational
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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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 the world The worlds richest got their exotic spell with a twist of sandal.
The plant 8
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.
The factory started functioning in this new premise [i.e., present one] from 1st July 1957. From this year onwards till date the factory had never looked back, it has achieved growth and development in production scales and profits. The industry has 2 more divisions one at Shimoga and another at Mysore where sandal wood oil is extracted. The Mysore division started functioning from 1917 and only during 1984 manufacturing of perfumed and premiere quality Agarbathies at was started. Right from the first log of sandalwood that rolled into the boiler room in 1916, the company has been single minded pursuit of excellence. The project took shape with the engineering skills and expertise of top-level team under the leadership
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To attain self reliance To promote and uphold its image as symbol of traditional products To promote purity and quality products and thus enhance age old charm of Sandalwood Oil To build upon the reputation of Mysore Sandal soap based on pure sandal oil. To maintain the brand loyalty of its customer. To supply the products mentioned above at most reasonable and competitive rate.
VISION STATEMENT: Keeping pace with globalization, global trends and the 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.
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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.
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 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.
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Conservation of energy Conservation of Surrounding Conservation of resources. Equipped with latest technology and backed by full-fledged quality control and R&D support, KS&DL is marching confidentially ahead in the new millennium. The Company is developing new products to meet the changing preferences of its customers. 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 KarnatakaMysore. A fragrant gift to the world from the first Government Soap Factory of India. Nurtured by the Maharaja of Mysore, enriched with all the goodness of natural sandal wood oil, this unique soap captured hearts and markets at home, as well as right across the globe creating a fragrant legacy for the state of Karnataka. Karnataka Soaps and Detergents limited (KS&DL) is the true inheritor of this golden legacy of India. Continuing the tradition of excellence for over eight decades, using only the best Grade sandal wood oil in its product range, KS&DL today in one of the largest producers of Sandal wood oil and sandal wood soaps in the world. PRODUCT MANUFACTURED BY KS&DL:-
TOILET SOAPS
NAME OF THE PRODUCT 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 UNITS OF GRAMS 75, 125 75 75, 125 75 75 100 100, 125 100 100 16
DETERGENTS
NAME OF THE PRODUCT Mysore Mysore Mysore Mysore detergent detergent detergent detergent powder powder Cake cake
UNITS IN GRAMS
1000 500 125 250
TALCUM POWDERS
NAME OF THE PRODUCT Mysore Sandal Talc Mysore Sandal Baby Talc
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AGARBATHIES
PRODUCT PROFILEKS&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.
(75gm) 18
(75gm)
(150gm Each)
(125gm)
(100gm)
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(150gm Each)
(125gm Each)
j. Mysore Sandal Classic Soap k. Jasmine Bath Soap l. Mysore Jasmine Soap
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.
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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 100-400gms.
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
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OWNERSHIP PATTERN:
Wholly owned by Government of Karnataka.
COMPETITORS SHARE:
HLL Godrej
INFORMATION
70% 4% 10% 11% 5%
AND
THEIR
MARKET
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
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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
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KS&DL AT GLANCE:Incorporated Name Address - Karnataka Soaps and Detergents Limited. - 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 Constitution - 1918 - Wholly owned by Govt. of Karnataka Undertaking
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The facility is a pioneer in the Manufactures of various soaps and technology Imported from Italy.
Licensed capacity is 26,000 metric tons of Soaps & 10,000 M.Tons of Detergents Per annum
Plants
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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 Quality Control Department
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MANAGING DIRECTOR
FIRST AID
VMO
LWO
JR. OFFICER
ASST.MGR
SR.ASST. JR.OFFICERS
SENIOR ASSTS
JR.OFFICER
HELPER
SR.ASSTS.
ATTENDER
SR.ASSTS
ATTENDER Cooks
Helpers
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01 02 03 04 05 06 07 08 09 10 11 12 Luther
M.D Asst.Gen.Mgr Mgr [HRD] Asst.Mgr [Canteen] LWO VMO Officer [HRD] Jr.Officer [HRD] Sr.Asst.s Attainder Cooks Helpers Gulick highlighted
Managing Director Assistant General Manager [HRD] Manager [HRD] Assistant Manager [Canteen] Labour Welfare Officer Visiting Medical Officer Officer [HRD] Junior Officer [HRD] Senior Assistants Attainder Cooks Helpers 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 Transfer 4) Wages and salary administration
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MAN POWER DETAILS: GROUP Executives Supervisors Workers Total Bangalore 85 49 548 682 SOD Mysore 07 10 30 47 Marketing branches 56 15 39 110 Duty paid Godown Shimoga 02 16 18 Total 150 74 633 857
The lunch time is from 12.00pm to 12.30pm. Every Sunday is rest day for the employees. No allowance is paid to the first shift workers; a
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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 medical certificate from Doctor. 15 days of sick leave is given for an employee per year and it can be encashed. 4. Conveyance Allowance: The conveyance allowance of Rs.595 per month per workman is extended. 5.Special Allowance: Paid to Typists, Stenographers, Asst.Cashiers, and Store Keepers from Rs.55 to Rs.75. 6.Family Travel Allowance: This allowance is paid at the rate of Rs.500 per employee per year who has put a minimum three years of service.
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7.Canteen Facilities: All employees are provided with canteen facility at highly subsided rate. 8.Annual Bonus: It is agreed to pay the profit sharing bonus in terms of the provisions payments of Bonus Act 1965. 9.Attendance Bonus: It is paid equivalent to one days basic pay subject to minimum of Rs.75 per month. 10. House Building Advance (HBA), House Repair Advance, House Purchase Advance: KS&DL has agreed to provide subsidy on the loan amount secured by the employee from HDFC or any recognized financial institutions viz., co-operative banks, scheduled banks etc., If the interest payable by the employee exceeds 7% then he shall be eligible for interest subsidy to be borne by the company not exceeding 5%. 11. Festival and National Holidays: Number of paid holidays in the company is 10 festival holidays and 3 national holidays per calendar year. 2 holidays will be treated as restricted festival holidays to be selected by the employees from the list of holidays to be notified by the company for this purpose. 12. Death Relief Fund: Rs.30,000 will be paid to the nominee in case of death of an employee. 13. 14. Memento to retiring employee: Rs.2,500 will be paid as memento to retiring employees. 15. Medical Reimbursement: Benefit to non-ESI employees a sum
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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. Absence without pay for more than 40 days less than 70 days. Absence without pay for more than 70 days less than 100 days.
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Revised Pay Scale 5140-110-5690-140-6390-170-7240-200-8240 5250-110-5690-140-6390-170-7240-200-8240240-9440 5690-140-6390-170-7240-200-8240-240-9440280-10840 5970-140-6390-170-7240-200-8240-240-9440280-10840-330-12490 6110-140-6390-170-7240-200-8240-240-9440280-10840-330-12490-400-14490 6390-170-7240-200-8240-240-9440-28010840-330-12490-400-14490-500-15990 7240-200-8240-240-9440-280-10840-33012490-400-14490-500-17990 8240-240-9440-280-10840-330-12490-40014490-500-17990-600-19190
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SI.NO 01 02 03 04 05
Designation Jr. Officer Officer Asst. Manager Manager Asst. Gen. Manager
06 07 08
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. 7. LTC / FTA. 8. Conveyance Allowance. 9. Education Advance. 10. Festival Advance. 38
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. Mode of selection: Is done through interview conducted by Staff Selection Committee once in a quarter. Final selection: Of the maximum of 100 marks earmarked for selection 70 marks is allotted to the performance in the present
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PRODUCTION DEPARTMENT:
KSDL as 3 main production plants: Fatty Acid Plant 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
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Senior Manager
Manager
Manager
Manager
Deputy Manager
Works Manager
Senior Engineer
Engineer
Workers
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Chairmen Chairmen
MD
GM(MKTG)
DGM(MKTG)
AGM(BB), (CHE),(HYD)
PM(Det& Agb)
PM(CFGS)
M(MRIS)
M (S)
AM (Mktg)
AM (CFGS)
AM (Mktg)
AM (MRIS)
AM (S)
AM(A)
Off (CFGS)
Off (S)
Off (A)
Jr Off
Jr Off
Jr Off
Jr Off
Sr Asst
Sr Asst
Sr Asst
Sr Asst
Jr Asst
Jr Asst
Jr Asst
Jr Asst
Jr Asst
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ORG: Operational Research Group report main source of marketing research private agency which study the competitors consumer demand, market etc that generates the report.
CHANNELS OF DISTRIBUTION:
KSDL manufactures their products i.e. soaps & detergents. After this sent to various distribution points through agents. The stockiest sells to various retailers hence it reaches to the consumers. CHANNEL DISTRIBUTION: Manufacture (KSDL)
Agents
Stockiest (Wholesalers)
Retailer
Consumers
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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
FUNCTIONS OF MARKETING DEPARTMENT: 1. Marketing Mix : it is the policy adopted by the manufactures to get success in the field of marketing 2. Product Policy: It includes both the turns of development & improvement produced and existing products. This all totally done by KSDL both marketing & R & D department. 3. Distribution Policy: The manufactured product of KSDL is supplier to the factory depots. There are various depots in various states & stored there. 4. Sales & Promotion: the drawback is poor advertising & sales promotion. 5. Packing: Uses different materials for different products, card board boxes synthetic covers. 6. Market Share: The KSDL production strategy is more expensive when compared to other product. At present co, holding market share of 18% in south India & 8% throughout India basis for premium soaps.
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FINANCE: It is the life blood of every organization. It is concerned with managerial decision making. This department is concerned with proper utilization of cash. It identifies the source of finance where to borrow i.e. ICICI, IRBI, IDBI, Corporation bank etc. It has abundant of function which can be enumerated as follows: Effective funds management which is inverted in beneficial projects. Decision making regarding fixing of cash account. Obtaining trade credit. Profit Maximization. Wealth Maximization. Preparation of cash budgets. Systematic approach to working capital management. Pricing of raw materials & valuation of stores. To protect financial interest of the company.
AUDIT DEPARTMENT: KSDL audit wing is headed by interval auditor. Auditing is vital for the company as it facilitates verifying of all the books of a/c by trial balance, it also comply with requirements for central excise & income tax purposes. After the 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. KSDL use process costing as the production mechanism is systematic it involves addition of a lot of ingredient in the manufacturin
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Managing Director
General Manager (Finance) DGM (F) AGM (F) / A/Cs/Audit/CE I/C (1)
CE JR.Officers JR.Officers
JR.Officers (3)
SR.Asst.
SR.Asst.
JR.Asst.
JR.Asst.(V)
JR.Asst.
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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
DIVISION OF KSDL: 3 manufacturing units all over India 1. KS & DL Bangalore Division 2. Mysore Division 3. Shimoga Division
STORAGE DEPARTMENT:
In KSDL there are about 8 stores namely: 1. Packing Materials 2. Engineering Goods
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WELFARE DEPARTMENT:
KSDL welfare department can be classified into 3 sections namely, 1. Statutory 2. voluntary 3. Non statutory a) Statutory : KSDL welfare association is based on employees contributions, interest carved. Canteen facility First aid Provident Fund
b) Voluntary benefit : c) Mutual : Employees get 2 pairs of uniform at every year & a Pair of shoes for every year Cultural Recreations Leave facilities Employees Co-operative society which give loan on credit Employees house building society 49 workers education class conducted by the central board Inspection of fittings Dust nuisance Toxic gas nuisance
Proper maintenance results to: Reduction of overload Cost Reduction Greater Safety of equipment & workers Delivery schedule is maintained.
MATERIALS DEPARTMENT:
Materials are obtained at right time, right quality at right place from right source &at right cost which leads smooth flow of production. Objectives: Maintaining continuity of flow of materials Effective control of inventories Coordination Growth of the organization Maintaining ethical organization
It has been divided into 5 sections: Oil & fats section Perfumery & aromatically section Packing materials section Chemical section Miscellaneous & Engineering stores section 50
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.
STYLE OF MANAGEMENT:
Decision-making is centralized with the head office. Authority is given to unit in-charge to take decision in day-to-day minor matters & other urgent matters. Decision-making depends on the authority & responsibility conferred on each individual & thus its distributed based on designation & position held. In important matters, meetings are held to seek opinions of top management & various department manager & the decisions are taken & implemented.
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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 companys position in the market place with respect to customers, technology and products. Strategy is a choice of direction and action; the company adopts to achieve its objectives in a competitive situation. Any statements on overall of functional strategy that the company may wish to share are: Improvement in the existing products. Their future plans include launching of new products. The cost control exercise is in consolidation. Introduction of cost effective substitutes without compromising on quality Development of new perfumes, soaps detergents, Agarbathies, creams and shampoos.
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STAFF:
As any employer, KS&DL follow ethical employment standards wherever it operates with a goal in mind company guarantees.
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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.740 per month for workers. Family Travel Allowance: Rs.1500 per year for an employee. 5. Shift allowance: 3 shifts, 1st Shift: 6-2p.m 2nd Shift 2-10p.m Rs.25 paid 3rd Shift 10pm-6am Rs.35paid. 6. Leave facilities: 18 days privilege leave, 7 days casual. 15 days sick 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
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SHARED VALUES:
Values: Values refer to the institutional standards of behavior that strengthen commitment to the vision, and guide strategy formulation and purposive action. The core values are shaped around the belief that enterprises exist to serve society. In terms of this belief, profit is a means rather than an end in itself a compensation to owners of capital linked to the effectiveness of contribution to society and the essential ingredient to sustain such enlarged societal contribution. Thus company has embraced an extended role of trusteeship that reaches beyond the assets reflected in the balance sheet to encompass societal assets. An unwavering commitment to integrity, ethical conduct, meritocracy, teamwork and abiding concern for stakeholders are at the heart of your 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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SWOT ANALYSIS
STRENGTHS The factory is located in the heart of the city & has all infrastructure facilities. They require quick movement of raw materials & finished products. Due to its proximity, habitation movement of men and material are easy. The company has modern manufacturing facility with maximum capacity, brand loyalty of consumers and has 90% of sandal soap market, foreign technology to suit indigenous condition due to government participation, little financial crisis with backup from government. A very good dealership network, which ensures that the products reach every loop and corner. A very little competition for its major products sandal soap. An ISO 9002 certified company has its own brand image. An ISO 14001 company, which commits to reserve the natural environment in the production of its quality products to the satisfaction of its customers. Diversified product range keeps the company stable. Abundant availability of raw materials. Two sandalwood oil factories in Shimoga and Mysore, which produce 75% of worlds sandalwood oil.
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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 publicity. Needs updating with times in terms of plant and machinery. R&D is not effective in as much as it has not made any brake through in new products. The large proportion of the target area is upper middle class and upper class people, it has very few offer to lower middle class. It has only 8% of the total detergent market share. Due to lack of direct sales, debts with many dealers turning bad. Unskilled labor coupled with excess labor hampers profitability. Product lies under utilized. marketing strategy lacks effective advertising and
OPPORTUNITIES: 1. The toilet soap and the detergents market is an over expanding industry and a major company likes KS& DL with its manufacturing expertise can call the shots if it reaches peak manufacturing capacity. 2. Good export market should tap foreign market vigorously. 3. At present it has Good raw material sources to enhance production. THREATS: 1. Competition from other global leaders like HLL. 2. Government interference may reduce growth potential.
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ANNUAL REPORT OF KSDL Operational performance Production :Total Rs. 17,460.20 lakhs as against Rs. 14256.86 lakhs Actual production in metric tons 2008 09 7199.810 2814.466 1.068 245.095 162.198 2007 08 6452.917 1871.497 1.152 208.661 158.536
SI No 01 02 03 04 05
Class of Goods Soaps Detergents Sandal wood oil Agarbathies Talcum Powder
Sales :Gross = Rs. 19,006.53 lakhs as against Rs. 16,247.74 Net = Rs. 16,939.19 lakhs as against Rs. 14,552.85 Sales (Rs. In lakhs) SI No Class of Goods 2008 2009 Quantity Value in M tons Soaps Detergents Sandal wood oil Agarbathies Talcum Powder Other 7555 2813 --395 170 --2007 2008
01 02 03 04 05 06
Quantity Value in M tons 14,808.29 7097 13,006.38 914.96 28.37 588.88 262.61 336.08 200 577.54 7 --- 28.63 206 181 578.65 323.77 37.88
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PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2009
PARTICULARS Rs. INCOME Sales Less: Excise duty Net sales Other income 1,69,39,19,36 8 16,02,15,837 1,53,37,03,53 1 6,06,23,797 1,59,43,27,32 8 7,03,74,213 1,66,47,01,54 1 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 1,85,00,000 21,28,828 2,03,58,318 11,68,14,479 1,40,78,6 09 801928343 73,44,42,910 39,69,038 1,54,03,40,29 1 12,43,61,250 72,76,261 11,70,84,989 AMOUNT Rs.
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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.
31,82,21,000 26,77,19,129
31,82,21,000 ----
10,72,04,60 8 8,35,06,504
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1,09,13,72,58 7
91,16,89,55 5
24,66,50,79 4 20,49,56,56 0
30,87,52,36 5 16,67,70,64 0
-----------77,84,20,599 55,54,08,01 3
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PART-E
Learning Experience
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65
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CONTENTS
PART-A 1. 2. 3. Industry Profile Company Profile Product Profile PART-B 4. McKinseys 7s Frame Work PART-C 5. Swot Analysis PART-D 6. Latest Annual Report PART-E 7. Learning Experience 64-66 59-63 56-58 29-55 1-4 5-18 19-28
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AM (PR&PF)
Bills Costing
Junior Officers
S R Assistant
S R Assistant
S R Assistant 68 J R Assistant
J R Assistant
J R Assistant