Karnataka Soaps and Detergents Limited

Karnataka Soaps and Detergents Limited.
CHAPTER 1:
INTRODUCTION ABOUT THE ORGANIZATION AND INDUSTRY
1.1 INTRODUCTION TO SOAP INDUSTRY: -
Mankind knew about soaps nearly 2000 years back that is in 70 A.D. Mr. Elder accidently
soap, when roasted meat over flowed on the glow in ashes, resulting in clay mixture found to
make cleaning easier. In 1192 A.D the first commercial batch of soaps was made and marketed
by M/s Bristol in London. The first patent for producing soap was obtained in London in the
year 1662 AD.
Soap is one of the commodities which have become an essential part of the life of modern
invention world. Since it is ephemeral consumer goods, there is a large market for it. The whole
soap industry is experiencing changes due to countless reason such as government relations,
Environment, toxicological allergy problems increase in cost of raw materials etc.
Soaps are categorized into three types such as men’s soaps, ladies soaps and common soaps.
There are few specialty soap like glycerin soaps, Sandal Soaps, especially flavored soaps,
medicated soaps and baby soaps. With the household penetration of soaps nearly 100%.
Different income levels of people use different brands, which fall under different segments but
all income levels use soaps making it the largest category.
Due to environmental changes like changing in technology and existing desire by the
individuals, organization produce more economical rate of soaps. More soap manufacturers are
trying to capture market share by introducing new products and maintaining bearable products.
1.2 History of Indian Soap Industry:
During the British rule Lever Brothers, England introduced modern soaps by importing and
marketing them in the country. The first business established was North West Soap Company,
an Indian soap production facility located in Meerut, Uttar Pradesh. They began selling cold
process soaps in 1897.
In 1918, Mr. Jamshedji Tata set up India’s first indigenous soap manufacturing unit when he
purchase the coconut oil mills at cochin Kerala and during the same time in 1918 Government
soap factory was started by Maharaja of Mysore in Bangalore.
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Sambhram Institute of Technology. Banglore
The Indian soap industry has been overpowered by a bunch of organizations like:
a) Hindustan Unilever Limited

b) Tata Oil Factories (Taken over by HLL)
c) Godrej Soaps Private LimitedLater participants include- Colgate Palmolive Ltd.,
Proctor and Gamble Ltd., Nirma Soap works, Wipro Ltd.
1.3 Present Status Size of industry:
One of the world's biggest producers of soaps and detergents is India. The Indian soap market
stood at value of around INR 195 billion in 2020 and US$ 2694 million in 2021. Looking
forward, market to reach value of US $3973 million by 2027, exhibiting a CAGR of 6.53%
during 2022-2027.
The rising population, significant economic expansion, rapid industrialization and evolving
lifestyles are some factors driving the Indian soap market. Others factors are:
1. The inflating income levels,
2. The shifting preference toward value added products,
3. The develop eco-friendly products, etc.
Current soap market has categorized into different segmentation based on product type, form,
and distribution channel.
 Product type-premium products, mass products

 Form- solid soaps, liquid soaps
 Distribution channel- supermarket and hypermarkets, convenience stores, pharmacies,
specialty stores, online.
1.4 Major players:
The most prominent and dominated Indian soaps companies are:
 Godrej consumer products Limited,

 RB Health,
 Wipro consumer care,
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 ITC Limited,
 Jyothy Labs,
 Hindustan Unilever
1.5 Introduction of organization:
Ivory, silk, sandalwood, and precious stones have been prized for generations in India, a
country rich in forests. With a twist of sandal, the most alluring fragrances in the world gained
their unique magic. The richest supply of sandalwood in the world is found in Karnataka, a
remote region of forests in south India.
The Mysore sandal soaps are made with sandalwood oil, which is known as "Liquid Gold" and
comes from the Karnataka region. Sandalwood oil is the fragrant ambassador of India.
This situation help to rise to start of an industry, which produces value added products i.e., of
sandalwood oil. His Highness Maharaja of Mysore use this situation as an opportunity by
sowing the seed of the government sandalwood oil Factory, which is present KS&DL. Late Sir
M. Visvesvaraya, the great Engineer who was the man behind this project.
Sosale Garalapury Sastry was an Indian industrial chemist known for his work on the
manufacture of sandalwood soap through the establishment of the Mysore soap factory in
Bangalore. This earned him the nickname of Soap Sastry.
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CHAPTER:2
ORGANISATION STUDY
2.1 Background of KS&DL:
Founders of Karnataka Soaps and Detergent Limited (KS&DL)
Mysore Maharaja Nalwadi Krishna Raja Wadiyar, Diwan.Sir. M.Visvesvaraya and sosale
Garalapury sastry
Fig.2.1 NALVADI KRISHNA RAJA WADIYAR
DIWAN SIR.M.VISVESVARAYA
SOSALE GARALAPURY SASTRY
Karnataka soaps and Detergents limited, a successor to the government soap factory, which is
one of the foremost factories among the Indian soap industries. One of the world's biggest
sandalwood producers at one point was the Indian kingdom of Mysore. It was also one of the
major exports of the world, most of which was exported to Europe. During the First World
War, large reserve of sandalwood were left over because they could not exported due to the
war. To make good use of these reserves, Nalwadi Krishnaraja Wadiyar, the king of Mysore,
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established the government soap factory in Bangalore. This factory, which was set up in 1916,
started manufacturing soaps using sandalwood oil as the main ingredient. Another facility for
sandalwood oil was built in Shimoga in 1944. After the unification of Karnataka, these factories
came under the jurisdiction of the government of Karnataka and decided to merge these
factories and incorporated them under a company named Karnataka Soaps and Detergents
Limited. The company was registered as public Limited company.
Today the company produces varieties of products in toilet soaps, Detergents, Agarbathis,
Coconut oil and Talcum Powder. Since its founding, KS&DL has earned a solid reputation for
the calibre of its output. Mysore sandal soap is the number one anywhere in the world. KS&DL
owns a proprietary geographical indication tag on the soap, which gives it intellectual property
rights to use the brand name, to ensure quality and to prevent piracy and unauthorized use by
other manufacturers.
2.2 Nature of business:
The Company Karnataka Soaps and Detergents Limited is premiere soap manufacturing
company based in Karnataka. Its nature of business are manufacturing and marketing.
Company manufacturing of toiletries including soaps, detergents, incense sticks, talcum
powder, coconut oil and hand wash. Company producing wide range of product from more
than hundred years that are to meet the needs of customer from both lower and higher income.
Company mainly focus on carrying on business not only aim of profit making and Company
providing employment opportunities to society.
From last few years company is concentrate on marketing their own products. They are mainly
focusing on premium segment of the soap market, then they have small market share in
detergents and Agarbathis segment. They occupy 11% of market share in the small premium
soap segment. Karnataka Soaps and Detergents Limited is under organized sector.
2.3 Vision, Mission, Quality policy
Vision:In order to enhance its functional activities, transparency, and business and to position
itself as a competitor in the fast-moving consumer goods market in India as well as to spread
its fragrance in the fast-moving consumer goods global market, Karnataka Soaps and
Detergents Limited will utilise cutting-edge soap manufacturing technology and information
technology.
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Mission:
1. KS&DL research center constant endeavor is continuously working on upgrading the

products quality formulation of all the products viz. soaps, Detergents, cosmetics,
agarbathis, inducing newer products with the heightened regulatory measures to meet the
highest international quality standards with fully integrated product life cycle management
ensure the compliance of food and drug administration & Registration Evaluation
authorization and Restriction of chemicals.
2. The major thrust of R&D is committed for developing the natural essential oil based
products using the natural sandalwood oil base to achieve the new paradigm of
competitiveness, maximize customer satisfaction, to meet the customer requirements and
expectations.
Policies of KS&DL:
 Seek to purchase goods and services from environmentally responsible suppliers.
 Communicate its environmental policy and best practices to all its employee
implications.
 Design and develop products that have a positive impact on the environment.
 Monitor progress through internal and external audits.
 Reuse and recycle materials wherever possible and minimize energy consumption and
wastage.
2.4 Product / Services profile:
The products produced at KS&DL are the soaps, Detergents, Agarbathis, Cosmetics and
Sandalwood oil. Products manufactured by KS&DL are:
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Soaps:
Sl.no Name of the Weight of soap in Products

products gram
01 Mysore sandal 75 & 125

soap
02 Mysore sandal 75 & 125

Gold soap
03 Mysore sandal 150

soap- sandal
bath tablet
04 Mysore Sandal 150

millennium soap
05 Mysore sandal 75
classic soap
06 Mysore sandal 75
baby soap
07 Mysore sandal 3*150

bath tablet- SJR
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08 Gift pack-3 in 1 3*150
09 Gift pack- 6 in 1 6*150
10 Mysore sandal 6*125

gold sixer
11 Mysore rose 100 & 65

soap
12 Mysore carbolic 96 & 150

soap
13 Herbal care soap 100
14 Wave soap- 75 & 100

Turmeric,
Lemon
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15 Sandal Guest 17
tablet
16 Rose guest tablet 17
17 Herbal care 17
guest tablet
Detergents:
Sl.no Products Quantity Product

name
01 Point 1 litre
Advanced
Liquid
detergent
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02 Mysore sandal 125 g

detergent cake
03 Mysore 1000g, 500g

detergent
powder
04 Mysore sandal 1 litre

kleenol
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Cosmetics:
Sl.no Products name Products
01 Mysore sandal face pack
02 Mysore sandal oil
03 Mysore sandal baby powder
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04 Mysore sandal coconut oil
05 Mysore sandal talc powder
06 Mysore sandal baby massage oil

and shampoo
07 Mysore sandal massage oil
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Sandalwood:
Sl.no Products Quantity Product

name
01 Sandalwood 5,10,20,100,500
oil ml, 2 kg and 25 kg
02 Sandalwood 100,300& 1000

billets grams
Agarbathis:
Sl.no Products name Quantity Products
01 Mysore sandal 20 sticks

premium 9”
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02 Mysore sandal 20 sticks

regular-9”
03 Rose regular-9 20 sticks
04 Jasmine 20 sticks
regular-9
05 Jasmine rolls 30&60 rolls
06 Sir M.V 100 100 grams
07 Nagachmpa 20 & 40 sticks
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08 Meditation 20sticks
sandal
09 Mysore sandal
Dhoop
2.5 Ownership pattern:
“Wholly owned by Government of Karnataka”.
2.6 Achievements / Awards:
1. Export Award for the year 2006-2007 for the Excellence performance in Exports market.
2. National Award for excellence in Cost Management -2012, 2015-16 by Institute of cost
accounts of India.
3. Chief Minister’s Karnataka Ratna Award in the year 2010, 2016-17, 2018-19 for
Excellence in progressive growth.
4. Samman Patra from Ministry of Finance, Department of India for outstanding revenue
performance for the year 2015-16.
5. Geographical Indication GI-2006.
6. ISO
7. 9001-2015 for quality assurance.
8. ISO 14001-2015 for Environment Policy.
9. KS&DL is also accredited with GMP (Goods Manufacturing Practices) certificate vide
REGN.NO-QSA1506493.
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2.6.1 Milestone of KS&DL:
1916 – Mysore sandalwood oil factory started at Mysore.
1918 – Government soap factory was started by Maharaja of Mysore with capacity of
112MTs/Annum near Cubbon Park, Bangalore and the Mysore Sandal Soap was introduced
into market for the first time.
1932 – Toilet soap production capacity was increased to 750 MTs/annum.
1944 – In Shimoga, work on the second plant to produce sandalwood oil began
1954 – Foundation stone laid by Sir M Visvesvaraya for establishment of new manufacturing
facilities at Rajaji Nagar, Bangalore.
1957 – Factory was shifted from Cubbon Park to new premises.
1965 – Began selling its goods to several nations.
1967 – Celebrated its Golden jubilee.
1970 – Production capacity was increased to 6000MTs/Annum with modern manufacturing

equipment.
1975 – Italian technology was used to establish a synthetic detergent plant for the production
of detergent cake and detergent powder.
1980 – Government Soap Factory was converted into a public enterprises and company was
incorporated on 9th July 1980 and re-named as Karnataka soap and Detergent limited.
1981 – Rs.5crore Fatty acid plant was installed with technical collaboration from Europe.
1984 – Manufacturing of premium quality of Agarbathis at Mysore.
1987 – Factory has taken over marketing activities from MSIL and started its own marketing
network.
2004 – The company launched Herbal Care soap.
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2008 – Company has introduced Hand Wash liquid under the trade name of Herbal Hand wash
and Rose hand wash liquids.
2010 – Company launched Mysore sandal Dhoop.
2016 – The company reached highest gross sales turnover of Rs.476.00crores during the
financial year 2015-16 with more than Rs.60crores profit.
2016 – KS&DL completed 100 years.
2017 - KSDL reached its highest gross turnover of Rs.521crores.
2019 – KSDL reached its highest gross turnover of Rs.672crores.
2021 – KSDL reached its highest gross turnover of Rs.800crores.
2.7 KS&DL at Glance:
Incorporated Name – Karnataka Soaps and Detergents Limited
Address - Karnataka Soaps and Detergents Limited
Bangalore-Pune Highway
Postal Box no. 5531
Rajajinagar, Bangalore- 560055
Phone number - 080-22164800
Email - www.mysoresandal.co.in
Year of established - 1918
Constitution - Wholly owned by Government of Karnataka
Management - Government of Karnataka nominates/appoints Board of

Directors,chairman and Managing directors.
Renamed in - 1980
Trademark - Trademark is SHARABHA. It is body of lion with head of elephant

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Meaning blending the majesty of lion with strength of elephant.
Fig.2.2 TRADEMARK
Products - Toilet soaps, Bar soaps, Detergents cakes, powder,
Agarbathis, Cosmetics and sandalwood oil.
Plants - At Bangalore: soap, Detergents, Fatty acid, Cosmetics and coconut oil
At Mysore: Sandalwood oil and Agarbathis.
At Shimoga: Clearing &Forwarding (C&F) operations.
Slogans - “Natural products with exotic fragrance”
2.8 Future Growth and Prospectus:
 Introduction of anti-bacteria, herbal transparent soap for all types of skin and all
seasons.
 Introduction of trade schemes to increase sales.
 To reach large base customers in market.
 To enhance the market share
 Reduction in distribution expenses,
 Take instant decision making in certain procurement activities,
 Timely introduction and implementation of market driven decisions.
 Ensure effective internal control.
 Modification of soaps, cosmetics, detergents for better improved performance.
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2.9 Corporate social Responsibilities:
 Suchi Sambhrama (Student Hygiene kit):

Karnataka soaps and detergents limited has introduced a student hygiene kit in the name
of “Suchi Sambhrama”, to cater to the needs of hostel students coming under the social
welfare department, backward classes and minority institutions, Morarji Desai
Institutions and Navodaya Institutions. This kit is being supplied since 1994.
 Madilu Yojane (Post Natal Kit):
+-86Karnataka Soaps and detergents limited also introduced in 2008 a post Natal Kit
for catering to the needs of the families through children and family welfare
department, government of Karnataka. This is being given freely by the government
of Karnataka to the mothers post-delivery.
2.10 Workflow model
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CHAPTER-3
MCKINSEY’S 7S FRAMEWORK AND PORTER’S FIFVE FORCE MODEL
3.1 MCKINSEY’S 7 S MODEL
The 7-s model is also called McKinsey 7-s. This is because the two people who developed this
model, Tom Peters and Robert Waterman, have been consultants at MCKINSEY’S & Co., The
McKinsey 7S model is a changed framework based on a company's design.
The 7-S Framework of McKinsey is a management model that describes seven factors to
organizing a company in an integrated and effective way. A combination of these factors helps
to determine the way in which the company operates. Every manager should consider all seven
of these factors, to be successful implementation of a strategy, large or small. They're all
interdependent, so if a company fails to pay proper attention to one of them, this may affect all
others as well. Each factor will change their features by adding extra elements.
These above factors are further categorized into HARD S’s & SOFT S’s.
Hard S’s are:
 Strategy
 Structure
 System
SOFT S’s are:
 Skills
 Shared values
 Staff
 Style
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Fig.3.1 MCKINSEY’S 7 S MODEL
3.1.1 Strategy:
The main strategy of KS&DL is to produce good quality products for the public as well as
increase the standard of living of the people.
The business strategy emphasizes the following
 Increase their market share
 Try to reduce the cost of production
 Increase company performance
 Produce quality products
 Procedure quality products
 To meet social responsibilities
 They engage in weekly promotional campaigns to advance their market.
 Retention and recruitment.
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3.1.2 Sructure:
Since KS&DL is the public sector unit, the structure of the organization is more line
organizational structure i.e., the decisions taken by the top level management of the company.
For analysing and taking decisions, the top management will consult the lower level and
functional level managers. And for performance of any particular task, a separate functional
head is assigned.
This organization structure proves beneficial in 2 respects:
1. It reduces internal uncertainty pertaining to the functioning and control of organizational

activities.
2. To elaborate, since it clearly determines who reports to whom, the control, delegation of
authority, accountability is greatly facilitated.
The KS&DL department consists of production, quality assurance, materials, human resources,
quality control, stores, Finance, marketing and research & development departments.
LEVELS OF ORGANISATION
The organization of KS&DL consists of four levels. They are
1. Top Level consists of a Board of directors and a managing director.
2. The second level consists of Directors of Finance and special officers.
3. The third level consists of deputy managers and officers.
4. The fourth level consists of clerks, assistants and attendees.
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ORGANISATIONAL CHART OF KS&DL: The hierarchy is represented as follows:
01 DGM Deputy General Manager
02 AGM Assistant General Manager
03 MGR Manager
04 MID Management Information Department
05 HRD Human Resource Department
06 QAD Quality Assurance Department
07 PD Production Department
08 R&D Research & Development department
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3.1.2.1 Finance and Accounts:
It is concerned with money aspects of managerial decision making of proper utilization of cash.
It identifies the source of finance, where to borrow and how to spend it economically to make
profits.
Bankers for finance provided by the KS&DL
1. Corporation Bank, Bangalore
2. State Bank of India, Bangalore
The Finance and Accounts department of the KS&DL with the assistance of the Deputy
General Manager, Assistant General Manager, manager, officers, senior assistants, contract
supervisors for proper maintenance of the company’s accounts, planning the funds
requirements, budgeting, auditing, balance sheet etc.
Finance Department Chart:
Managing Director
General Manager
(Finance)
DGM (F)
AGM(F)
A/C's Bills junior
Costing Superident AM PA to GM
Selection officers
Section
Junior Junior
Officers officers
Senior Senior Senior Senior Senior
assistant Assistant assistant assistant assistant
Junior Junior Junior Junior
assistant assistant assistant assistant
Chief
manager
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3.1.2.2 Human Resource Development and Administration: One of the most important
departments of an organisation. It manages the workforce of an organisation.
Organisational structure of Human Resource Department
Managing
Director
General
Manager
Human
Resource
Manager
Employment Wage and salary

Training Officer Welfare officer
Officer officer
Attender Attender Attender Attender
The activities of Human Resource Department:
 Recruitment, promotion, transfer, termination/superannuation and manpower planning.
 Employee communication system
 Salary, wages and allowance (including any special administration).
 Performance appraisal system.
 Maintenance of personal records.
 Study on labour turnover.
 Verification of caste certification and charter antecedent.
 Compilation of periodical reports to various statutory authorities.
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 Maintenance of SC/ST/Rosters.
 Maintenance of education, age and experience of the employees.
 Maintenance of manpower inventory.
 Handling disciplinary cases and conducting domestic inquiries.
 Study on absenteeism and suggesting measures both positive and punitive.
 Co-ordinating dispute cases before conciliation, labour court, industrial tribunal, labour
department and other courts.
 Grievances handling.
 Training and development.
 Industrial relations- union matters.
 KSDL human resource development and administration includes statutory, non-statutory

and voluntary benefits for employee contributions.
Labour Welfare Activities:
 Maintenance of canteen.
 First aid centre and medical facility
 Administrative of labour laws and enactment.
 Promotion of cultural activities.
 Conducting election for statutory and committees preparing and completion of statutory
returns.
 Worker’s education scheme.
 Administration of safety measures.
 Employee counselling, family planning, settlement of accounts, accident investigation.
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Shift Timings:
There are three shifts and one general shift. The office hours are from 09:30am to 05:30pm.
The shift timings are as follows:
First shift -06:00am to 02:00pm
Second shift -02:00pm to 10:00pm
Third shift -10:00pm to 06:00am
General shift -07:30am to 03:30pm
The lunch time is from 12:00pm to 12:30pm. Every Sunday is a rest day for the employees.
Leave Policies:
The companies provide
 Earned leave – 18 days earned leave is credited to an employee. It can be encased to the
employee and is calculated for 26 days but paid for 15 days in a year.
 Causal leave – 7 days of causal leave is given to an employee per year.
 Sick leave – 15 days of sick leave is given to an employee per year and it can be encased.
3.1.2.3 Production and Maintenance Department
Functions of Production Department-
The general manager is in charge of all manager's activities in the company with the assistance
of managers, officers and group workers. Arrangement of production activities in co-ordination
and liaising with the marketing department, material stores, to achieve targeted production and
the up-keep plant and machinery and utilities.
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Structure of Production Department

General Manager
Deputy Manager
Manager Manager
Works Manager Works Manager
Workers Workers
Production Plants of KS&DL

1. Fatty acid plant 2. Soap plant 3. Detergent Plant 4. Cosmetics plant
5. Coconut oil plant
Safety Program:
The Company believes in workers. They provide hand gloves, helmet, shoes etc. If the
employees feel secure they will increase their productivity. They trained their employees for
fire extinguishing activity.
Structure of Maintenance Department
Deputy General Manager
(Maintenance)
Assistant General
Assistant General
Manager(civil) Manager Manager (Machinery)
(Electrical)
contract based
employees Manager Manager
Junior officer Junior officer
Charge mans Charge mans
Workers Workers
Fitters and helpers Fitters and helpers
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3.1.2.4 Marketing and Business group
Soaps and detergents are sold in different parts of India. There are 26 depots at various places
in the country which are controlled by six branches. The role of each branch is to ensure that
sales activities come under their control. KS&DL also markets Agarbathis, talcum powder,
baby powder, hand wash, sandalwood and sandalwood oil.
SL NO. BRANCHES DEPOTS
1 Bangalore Bangalore, Hubli, Raichur
2 Chennai Chennai, Kochi, Salem
3 Hyderabad Hyderabad, Vijayawada, Anantpur
4 Mumbai Mumbai, Pune, Bhiwandi, Ahmadabad
5 Kolkata Kolkata, Patna, Guwahati
6 Delhi Delhi, Jaipur, Jalandar
Organisational chart of Marketing Department
Chairman
MD
GM (MKTG)
DGM (MKTG)
AGM (Adv & AGM

soaps)
AM
(Mktg) AM AM AM AM
Junior Junior Junior Junior

Officer Officer Officer officer
Senior Senior Senior Senior

Assistant Assistant Assistant assistant
Junior Junior Junior Junior Junior

Assistant Assistant Assistant Assistant assistant
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Marketing strategies of KS&DL
 The state government picked up nearly Rs.15crore worth of products from KSDL for its
student hostels and as health kits for expecting mothers in Karnataka.
 It was also helped along by 'soap santhes', or dedicated soap exhibitions, where it
rediscovered a market in small cities. The sale of 78 lakhs a month is generated by the
KS&DL in Tumakuru.
 KSDL's advertising and sales promotion budget was a puny Rs.5crore.
 State-owned Karnataka Soaps and Detergent Limited took a major step forward in brand
building by painting and vinyl wrapping the exteriors of a train to market its products. It
has transformed into a “billboard on wheels” with south western railways.
Channel of Distribution:
KSDL manufactures their products i.e. soaps and detergents. Various distribution points were
sent after this. The stockiest sells to various retailers.
Stockiest
Manufacturer Agents (wholesaler Retailer consumers
(KSDL) )
As the company markets their products, it ensures that there is proper description their products
and its distinct features. The consumer can understand its components.
Exports:
Different types of soaps are being exported to different countries. Middle East, European
countries, Australia, and African countries. They export their products to different parts of the
world.
Australia Italy Sri Lanka
Berlin Kenya USA
Canada Malaysia Japan
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Czechoslovakia Saudi Arabia UK
France Singapore Taiwan
Germany Africa Holland
3.1.2.5 Materials and Stores department
In KSDL there are about 8 stores, namely:
1. Packing materials
2. Engineering goods
3. Perfumery stores
4. Oil and fats stores
5. Detergent finished goods stores
6. Fuel and serviceable stores.
The stores play an important role in maintaining stock. It helps in the maintenance of the store
organization structure. The receipt procedures are monitored. First in, first out, is the basis for
issuing materials.
Raw Materials: In a soap factory, they basically use fatty acid, plum oil, caustic soda, salt
solution, chain clay, fragrance and perfumery. Perfumery and fragrance they purchase from the
local market. If the particular perfumery is not available in a nearby local market, they go to
import the fragrance.
Types of stores:
 Perfumery stores, Chemical stores, packing material stores, oil and fat stores, finished
goods stores.
Objectives of store department:
 Assuring the availability of raw material at the 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 the least investment in
inventory.
 Maintenance of adequate, but not excessive, storage of materials at all levels.
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KSDL has well-managed stores department for each of the five divisions departments viz. The
soaps, detergent, coconut oil, cosmetics and fatty acid department in the factory, there are
separate miscellaneous stores departments for raw materials, finished goods and tools.
3.1.2.6 Research and Development department
KSDL has full-fledged quality control and R&D single-minded pursue quality enhancement.
Both departments are headed by highly qualified professionals, committed to developing
products that keep in place with customers changing needs and perceptive. When doing
research, they have a target on which they get benefits and it enables the company to forecast
the future. In charge of Research and Development in the company with the assistance of
Assistant General Manager, Manager, Chemists and Group workers for new product
production, process improvement, development of alternative raw materials, cost reduction in
formulations, upgrade of quality of existing products.
Quality Control Division

1. Raw material quality control division
2. Production quality control division.
Objectives of research and Development Department:
 To improve the existing production
 To adopt new methods of product development
 To provide technical support for the marketing department.
 To make improvements in the process of production.
 To administer and maintain the technical library.
Manufacturing Divisions of KS&DL: KSDL has 3 manufacturing units all over India.
 KS&DL Bangalore division

 Mysore division
 Shimoga division
3.1.3 Systems:
KS&DL follows a systemization procedure at all levels. The performance appraisal system,
reward system, planning budgets, the training and welfare department programmers will be
done in a proper and structured manner. KS&DL management believes in the utilization of
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technology to deliver world class products and services. Companies have made a huge
investment in technological resources to ensure that products are superior and service delivery
in terms of products offering standard.
The KS&DL use the following systems:
 Inventory management system- Just in time and original equipment manufacturer for
smooth flow of production. FIFO method for issuing materials and computerized
accounting system for stores.
 Human resource management services (provided by the Government of Karnataka), a time
rate system followed for employees and the government fixes the remuneration to
executives.
 Performance appraisal system: Confidential report is prepared by heads of various
departments for systematic judgement of their subordinates by authorities to assess the
standard of work and overall performance.
 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.Accounting packages (online marketing and Tally 9.3 version)
3.1.4 Skills
Employee skills are very important to organizational growth, they must be unique in every
employee base on their experience and different working culture. The right skilled personnel
are placed across the organization. The skill level of the employees is constantly upgraded
through various training programs. The skills of employees are constantly upgraded to suit the
needs of the changing technology.
Level of Hierarchy Skills
Top level management Conceptual skills, leadership skills, problem solving skills,
communication skills, designing skills
33
Middle level Decision making skills, technical skills, communication skills,

management presentation skills, interpersonal skills, Grievance Handling skills
Lower level Communication skills, customer handling, trouble shooting,

management technical skills
3.1.5 Shared values
Values refer to the institutional standards of behaviour that strengthen commitment to the
vision, guide strategy formulation and purpose action. With a vision of being a world class
innovative, competitive and profitable enterprise providing total business solutions, the
company has used all the available resources. The company has a common goal for all of its
concerns and shares the information available in every concern.
Objectives:
 “Committed to delivering products and services to satisfy their customers”.
 “To make a continuous effort to improve quality by continuous training”.
 “Activity involves people contributing towards high productivity through team work and
innovation”.
 “Respect for individuals, trust and team spirit”.
3.1.6. Staff:
Staff requirements are designed to ensure that those on board have the primary focus on
customer service with a high level of product and process knowledge and operation excellence.
The training programs are designed to be conducted on a regular basis to ensure that levels are
continually enhanced by feedback for continuous improvement.
34
(Table consist of permanent employees only)
GROUPS BANGALORE SOD DUTYPAID MARKETING TOTAL

MYSORE GODOWN BRANCHES
SHIMOGA
EXECUTIVES 38 04 01 23 66
NON- 145 17 04 08 174

EXECUTIVES
TOTAL 183 21 05 31 240
Fringe benefits payable to employees:
Shift allowance, Annual bonus, House Building Advance, Festival and National Holidays,
Death Relief fund.
KS&DL has formulated the following HR policies:
 Career development plan and promotion rules for officers.

 Time bond advancement scheme for unionized employees.
 Standing orders applicable to unionized employees.
 Medical attendance rules
 Leave rules with encasement benefit.
 Education advance
 Festival advance and annual increment.
3.1.7. Styles
The management of KS&DL is completely employee oriented. Workers provide feedback to

management and, based on that, they make the right decision. The work of the management is
an autocratic and bureaucratic style of leadership. The employees follow both top level
managers and follow the procedure which is in the printed one. A senior cadre IAS officer will
be appointed to take decisions about company affairs and they follow a participative style.
Participation and involvement are important to the Company
35
3.2 Porter’s five force Model
Fig.3.2. PORTER’S FIVE FORCE MODEL
For analyzing an industry efficiently, Porter’s five force model is essential to consider
various competitive forces and how they interact with each other to create pressure on
one another. The industry analysis will basically enable the manager to review how
strong each force is in a particular industry. This model helps the firm to gain an edge
over its rivals in the industry. It also illustrates the nature and level of competition
existing in the industry along with the forces that shape a business and its functions.
Porter’s 5 forces are:
3.2.1 Rivalry among existing competitors:
1. There is very little differentiation between products which are sold by different
companies.
36
2. In the soap and detergents industry, the competitive rivalry is very high because of a
greater number of competitors.
3. Competitors concentrate more on research and development of products and services.
4. Competitors invest more investment in the promotion of their products and services and
they use different marketing strategies and fixation of prices. But in KS&DL, the
government fixes product prices.
5. Customers prefer branded products over products.
6. There are government restrictions on producing products limits.
3.2.2 Threat of new entrants:
1. New companies cannot come up in the short term, as the industry requires a huge initial
capital investment in setting up distribution channels, plants, machinery, raw materials
and promotion of their brand.
2. The market is dominated by a few companies and they capture a huge market share, and
KS&DL Company has a greater customer base and brand loyalty in the market. It would
be tough for new entrants to capture the market share in the short run.
3. For the production of sandalwood soaps, there is heavy restriction from the government.
Especially in Karnataka, suppliers of sandalwood do supply only to KS&DL. Suppliers
do not sell their materials to any private firms.
3.2.3 Threat of substitute products:
1. Substitute products are relatively cheaper compared to KS&DL products, and it increases
the risk of consumers going for the attractive low-price substitute. KS&DL may lose their
consumers.
2. There are many substitute products available in the market, like HUL, Wipro, Godrej etc.,
it affects the market share of an organization.
3. There is less product differentiation, brand loyalty, brand image and it becomes relatively
easy for the customers to go for a product.
37
4. Compared to KS&DL, substitute companies invest more on promotion of products and

services.
3.2.4 Bargaining power of suppliers:
Suppliers are also important for the success of an organization. They also have power. This
power comes from
1. There are few producers producing the sandal wood, they are the only suppliers or one of
few suppliers who supply a particular material to KS&DL.
2. It is costly for an organization to move from one supplier to another.
Karnataka Soaps and detergents limited mainly depend on suppliers for the production and
materials for packing. Because of restrictions from the government to suppliers, suppliers
supply their materials only to KS&DL, they have a very low bargaining power.
3.2.5 Bargaining power of buyers:
Buyers can influence and control an industry in certain circumstances. This happens when,
1. There is little differentiation between the products and substitutes that can be found easily.
2. Customers are sensitive to price.
3. Switching to another product is not costly.
There are more substitute products available to customers for purchasing, less product
differentiation among substitute products over KS&DL, and customers can easily purchase
the substitute products. Customers think about the price of a product and their income level,
based on whether they are purchasing the product.
38
CHAPTER 4:
SWOT ANALYSIS
Fig.4.1.SWOT ANALYSIS
4.1 Strengths:
 The factory is located in the centre of the city and has all the necessary infrastructure
facilities.
 It is fully owned by the government of Karnataka, so in times of financial crisis it can easily
get financial support from the government.
 Less competition for its major products: sandal soap.
 The world’s largest production of sandalwood oil. Two sandalwood oil factories in shimoga
and Mysore produce 75% of sandalwood oil.
39
 KS&DL is accredited with ISO 9001-2000 and ISO 14001:2004 certifications for its quality
management system and environmental management.
 KS&DL has a good dealership network in the market, their products reach all over the
market.
4.2 Weaknesses:
 KS&DL is a labour-oriented company, it requires a greater number of workers. Due to

excessive labour, the cost of labour also increases.
 Due to restrictions from the government, if they produce a lower amount of production, the
company does not reach the standard turnover. It reduces the profits of the company.
 KS&DL does not use strategies to promote their product. They use only newspaper and
banners for promoting their product. They do not promote their product through television
and others.
 There is a need for change in the technology of machines. Only two are updated automated
machines. The remaining machines are not updated. They are using old machines in a soap
plant.
 KS&DL concentrates more on upper and middle level class people. They will concentrate
on lower class people, then they will reach the larger market segment.
4.3 Opportunities:
 There is a huge demand for natural and traditional products in the market.
 We need good marketing strategies and to enhance the production range as the Mysore
sandal soap brand name is already known to domestic as well as international consumers
who give value to quality.
 The government support a new sandalwood policy to simplify sandalwood cultivation and
also provide suitable incentives.
 Producers of sandalwood sell their products to KS&DL only. It helps to increase production
of sandalwood products.
40
4.4 Threats:
 Huge competition from other global leaders such as HUL, WIPRO, Godrej etc.
 Government policy may reduce the growth potential of the company as the government
fixes capacity for production.
 There is a need for updating technology on machinery and renovation of plants
 Entry of new multinational soaps into the soap business.
 Suppliers are demanded by the government to sell their products to private companies.
41
CHAPTER 5:
ANALYSIS OF FINANCIAL STATEMENTS
5.1 Balance sheet of Karnataka soaps and Detergents Limited (Rs.in crore)
Sl. Particulars As at As at As at As at
No.
31 march 31 march 31 march 31 march
2018 2019 2020 2021
I. Assets
1. Non-current
assets
Property, Plant, 1261.94 1263.25 1279.23 1278.40

and equipment
Total Non-current 1261.94 1263.25 1279.23 1278.40

assets
2. Current Assets
Inventories 154.45 218.05 200.01 158.38
Financial Assets
Trade receivables 28.74 52.22 67.73 18.93
Cash and cash 22.44 23.17 68.24 19.59

equivalent
Bank balance other 163.92 213.62 291.14 509.19

than cash and cash
equivalent
Loans and 84.07 126.27 40.27 45.10

Advances
42
Total Current 453.62 633.33 667.39 751.20

Assets
Total Assets 1715.56 1896.58 1946.62 2029.60
II. Equity and

Liabilities
A. Equity
Equity share 31.82 31.82 31.82 31.82

capital
Other equity 1376.95 1478.74 1561.56 1656.33
Total Equity 1408.77 1510.56 1593.39 1688.15
B. Liabilities
1. Non-Current
Liabilities
Deferred Tax 153.44 154.61 161.81 160.33

liabilities
Provision 7.82 8.67 10.32 9.19
Total Non-current 161.26 163.28 172.13 169.52

liabilities
2. Current
Liabilities
Financial
Liabilities
Trade Payables 17.95 2.39 26.21 22.93
43
Other Current 87.08 92.90 143.15 147.50

liabilities
Provisions 40.50 127.45 11.74 1.50
Total Current 145.53 222.74 181.10 171.93

liabilities
Total Equity and 1715.56 1896.58 1946.62 2029.60

Liabilities
5.2 Statement of profit and Loss of Karnataka Soaps and Detergents Limited
(Rs.in Crores)
Sl. Particulars For the For the For the For the
No. year ended year ended year ended year ended
31 March 31 March 31 March 31 March
2018 2019 2020 2021
Income:
I Revenue from 488.61 568.25 645.05 786.32

operations
II Other income 10.09 26.64 31.38 21.12
III Total Incomes 498.70 594.89 676.42 807.43
Expenses:
a. Cost of materials 256.92 303.47 270.55 491.26

consumed
b. Purchase of stock in 4.17 3.88 4.19 0.69

trade
44
c. Changes in inventories (25.82) (31.84) 61.47 (6.43)

of finished goods, stock-
in-trade and work-in-
progress
d. Employees benefits 69.23 65.08 70.35 60.46

expenses
e. Finance cost - - - -
f. Depreciation and 1.09 1.23 2.08 2.32

amortization
g. Other expenses 89.48 89.11 87.85 88.24
IV Total Expenses 395.07 430.93 496.49 636.55
V Operating Profit 103.63 163.96 179.94 170.88
VI Tax Expenses:
Current tax 37.45 54.00 59.57 59.97
Deferred tax (1.04) 0.94 7.20 (2.03)
36.41 54.94 66.77 57.94
VII Net Profit after tax (V- 67.22 109.02 113.16 112.94
VI)
45
5.3 Cash flow Statement
(Rs.in Crore)
Particulars For the For the For the For the

year ended year ended year ended year ended
31 March 31 March 31 March 31 March
2018 2019 2020 2021
A Cash flow from

Operating activities
Net profit before tax as 103.63 163.96 179.94 170.88

per statement of profit
and loss account
Add/(Less):
Depreciation , 1.09 1.23 2.08 2.32

Amortization and
impairment
Taxes paid -37.45 -54.00 -59.57 -59.97
Interest and dividend -10.09 -26.64 -31.38 -21.12

income & other Non-
operating income
OCI-Acturial gains -0.86 -0.66 -3.5 1.55
Rounding off
Operating profit before 56.32 85.21 87.57 93.67

working capital changes
Adjustment for
movements in:
46
Trade receivables -4.48 -23.47 -15.51 48.80
Inventories 27.11 -63.60 18.03 41.63
Loans and advances -32.03 -42.21 86.00 -4.83
Trade payables 14.14 -15.56 23.82 -3.28
Other current liabilities 39.06 5.82 50.25 4.35
Current provisions -4.53 86.95 -115.70 -10.24
Net cash from operating 95.59 33.14 134.46 170.10

Activities
B Cash flow from

Investing Activities
Purchase of property, -1.50 -2.54 -18.06 -1.50

Plant, and equipment
Sale of property, plant - - - 0.01

and equipment
Interest and dividend 10.09 26.64 31.38 21.12

income & other Non-
operating income
Net cash from Investing 8.59 24.10 13.32 19.63

activities
C Cash Flow from

Financing Activities
Increase/(Decrease) in -0.01 0.85 1.65 -1.13

long term liabilities
47
Dividend and dividend - -7.66 -26.64 -19.18

tax paid
Net cash from -0.01 -6.81 -25.19 -20.31

Financing Activities
Net (Decrease) in cash 104.17 50.43 122.58 169.41

and cash
equivalents(A+B+C)
Operating balance of 82.19 186.36 236.79 359.38

cash and cash equivalents
Closing balance of cash 186.36 236.79 359.38 528.79

and cash equivalents
Components of cash
and cash equivalents:
Balance with bank not 22.42 23.15 68.19 19.59

carrying interest –Bank
balances in cash and cash
equivalents
Balance with bank 163.92 213.62 291.14 509.19

carrying interest –other
bank balances
Cash in hand- cash 0.02 0.02 0.04 0.01

balances in cash and cash
equivalents
Total of cash, cash 186.36 236.79 359.38 528.79

equivalents and other
bank balances
48
5.4 Meaning of financial analysis and Ratio analysis
Financial Statement analysis:
Financial analysis is the analysis of financial statements. Balance sheets and Profit and Loss
Accounts are used to diagnose the profitability and financial condition of a business concern.
Users of financial statements can get a better idea of the strengths and weaknesses of the firm
by analyzing the information reported in the statements. Financial statement analysis is a
process of evaluating the relationship between component parts of a financial statement to
obtain a better understanding of a firm’s position.
Ratio analysis:
Ratio analysis is the most used tool for analysis and interpretation of financial statements. The
figures appear in the financial statements. To make future projections, it helps to analyze the
past performance of the company. It allows interested parties like management, shareholders,
and potential investors, creditors, governments and others to make an evaluation of the various
aspects of a company’s performance from their own point of view.
5.5 Current ratio:
The current ratio is a company’s ability to pay short term obligation or those due within one
year is measured by the current ratio. It tells investors and analysts how a company can
maximize its assets on its balance.
Ideal current Ratio is 2:1.
Current ratio= Current assets/ Current liabilities
Year Current Assets Current liabilities Current ratio
2018 453.62 145.53 3.117
2019 633.33 222.74 2.843
2020 667.39 181.10 3.685
2021 751.20 171.93 4.369
49
800 751.2 5
700 667.39 4.5

4.369
633.33
4
600 3.685
3.5
500 453.62 3.117 3
2.843
400 2.5
300 2
222.74
181.1 1.5
200 171.93
145.53
1
100 0.5
0 0
2018 2019 2020 2021
Current Assets Current liabilities Current ratio
Interpretation: From the above table and chart indicate that KS&DL has a high current ratio
in each above-mentioned year. The current ratio is greater than 1 in each year, the company is
in good financial health and is likely to face financial hardships. They maintain more current
assets than current liabilities. They have plenty of current assets to pay for its current liabilities.
The current ratio that is greater than 3 can signal poor management of working capital.
5.6 Quick Ratio:
The quick ratio is an indicator of company’s ability to meet its Short term obligations with its
most liquid assets. The acid test ratio is the ability of company instantly use its near cash assets
to pay down its current liabilities. A quick test is called an acid test is a term used to describe
it.
Ideal quick ratio is 1:1
Quick ratio= Quick Assets/Current Liabilities
Quick assets = Current assets – Inventories
50
Year Quick Assets Current liabilities Quick ratio
2018 299.17 145.53 2.0557
2019 415.28 222.74 1.8644
2020 467.38 181.10 2.5808
2021 592.82 171.93 3.4480
700 4
592.82
600 3.448 3.5
467.38 3
500
415.28 2.5808 2.5
400
299.17 2.0557 2
1.8644
300
222.74 1.5
181.1 171.93
200 145.53 1
100 0.5
0 0
2018 2019 2020 2021
Quick Assets Current liabilities Quick ratio
Interpretation: From the above table and chart indicate that KS&DL has sufficient liquid
assets to satisfy its short term obligations. The quick ratio of the KS&DL is more than 1 in each
above-mentioned year. In 2021, its quick ratio is more than 3. It is a high and quick ratio, is not
a good sign because the company is resting on a significant amount of cash. This cash could
be better invested in business or investment schemes to earn interest / return.
5.7 Cash Ratio:
A company total cash and cash equivalents to its current liabilities is known as cash ratio. The
metric looks at the company’s ability to repay its short term debt with cash or near cash
resources. This information useful to the creditor when they decided how much money lend a
company.
51
The cash ratio is almost like an indicator of firm’s value. The value of current assets that could
be turned into cash and the percentage of the company’s current liabilities that could be covered
by cash and near cash assets.
Cash ratio= Cash and cash equivalents/ Current liabilities
Year Cash and cash Current liabilities Cash ratio

equivalent
2018 186.36 145.53 1.2823
2019 236.79 222.74 1.0631
2020 359.38 181.10 1.9844
2021 528.79 171.93 3.0756
600 3.5
528.79
3.0756 3
500
2.5
400 359.38
1.9844 2
300
236.79222.74 1.5
186.36 1.2823 181.1 171.93
200
145.53 1.0631 1
100 0.5
0 0
2018 2019 2020 2021
Cash and cash equivalent Current liabilities Cash ratio
Interpretation: From the above table and chart indicate that the cash ratio is greater than 1,
the company can cover all short-term debt and still have cash on hand. In 2019, the cash ratio
is less compared to the above-mentioned year. It shows that the company has a near amount
of current liabilities as the company cash and cash equivalents. In 2021, the cash ratio is high.
It shows that a company is not able to be used for profitable activities.
52
5.8 Net profit ratio:
The net profit margin measures the company's overall profitability from its sales after deducting
all direct and indirect expenses. The net profit percentage is the ratio of profits to sales. After
all cost of production, administration and financing have been taken into, the remaining profit
is shown. Consider aiming for profit ratios between 10% and 20% high or above average.
Net Profit ratio = Net profit after tax/ sales*100
Year Net profit Sales Net profit ratio (%)
2018 67.22 488.61 13.75
2019 109.02 568.25 19.19
2020 113.16 645.05 17.54
2021 112.94 786.32 14.36
900 25
786.32
800
700 20
19.19 645.05
568.25 17.54
600
488.61 15
500 14.36
13.75
400
10
300
200 5
109.02 113.16 112.94
100 67.22
0 0
2018 2019 2020 2021
Net profit Sales Net profit ratio
Interpretation: From the above table and chart indicate that KS&DL maintain a healthy profit
margin. They have earned more than 10% in every above-mentioned year. It shows that sense
of company’s financial stability.
53
5.9 Gross profit ratio:
The efficiency and performance of a company is determined by the gross profit ratio. The
gross profit is divided by the total net sales of the company. Gross profit ratio can also be
obtained in percentage firm by multiplying the above result by 100. It is regarded as the
gross profit margin or gross profit percentage.
To calculate the gross profit ratio of a company, first its total sales are determined over a
certain period and then the total material and labour cost is deducted to get the ratio.
Gross profit ratio = Gross profit/sales*100 or
Gross margin = Revenue – Cost of goods sold / Revenue
Year Gross profit Sales Gross profit ratio (%)
2018 103.63 488.61 21.21
2019 163.96 568.25 28.85
2020 179.94 645.05 27.90
2021 170.88 786.32 21.73
900 35
786.32
800
30
28.85 27.9
700 645.05
25
600 568.25
21.21
21.73
488.61 20
500
400 15
300
10
163.96 179.94 170.88
200
103.63 5
100
0 0
2018 2019 2020 2021
Gross profit Sales Gross profit ratio (%)
54
Interpretation: From the above table and chart indicate that KS&DL has efficient
management, low production and increased its sales price. They have earned more than 20%
in each of the above-mentioned years. They do well at managing their sales of cost.
5.9 Net working capital ratio:
Net working capital is the difference between current assets and current liabilities. It can be
used as a measure of firm solvency. The larger working capital, the greater ability to meet its
currents obligations. Measure of firm’s ability to raise the money net assets can be related to
it.
Net working capital ratio = Net sales / working capital
Net sales = Sales – Sales return
Working capital = Current assets – current liabilities
Year Net sales Working capital Networking capital ratio
2018 488.61 308.09 1.5859
2019 568.25 410.59 1.3840
2020 645.05 486.29 1.3265
2021 786.32 579.27 1.3574
55
900 1.65
786.32 1.6
800 1.5859
700 1.55
645.05
568.25 579.27 1.5
600
488.61 486.29 1.45
500
410.59 1.4
400 1.384
308.01 1.3574 1.35
300 1.3265
1.3
200 1.25
100 1.2
0 1.15
2018 2019 2020 2021
Net sales Net Assets Networking capital ratio
Interpretation: From the above table and chart indicate that decreasing the net working
capital ratio. A decreasing ratio indicates that KS&DL may have too many total current
liabilities, reducing the amount of working capital. They maintained a healthy working capital
ratio in the above-mentioned years.
5.10 Total Assets turnover ratio:
The ratio is the relationship between sales and total assets. This ratio is used to measure the
overall activity and performance of the business.
The lower assets turnover ratio indicates poor management of resources in the excess
production capacity and inventory management. Increase in this ratio may show that the
company is on the path of growth.
Total assets turnover ratio = Total sales / Total assets *100
Year Sales Total assets Total assets turnover ratio (%)
2018 498.70 1715.56 29.1
2019 594.89 1896.58 31.4
56
2020 676.42 1946.62 34.7
2021 807.43 2029.60 39.8
2500 45
39.8
2029.6 40
1896.58 1946.62
2000 35
34.7
1715.56
31.4
29.1 30
1500
25
20
1000 807.43
676.42 15
594.89
498.7
500 10
0 0
2018 2019 2020 2021
Net income Total assets Return on Assets (%)
Interpretation: The above table and chart indicate that the return on assets is increasing every
year. Return on Assets is more than 20% in each year of the above-mentioned. It indicates
that KS&DL is not renewing its assets for the future and they are investing in new machinery
and equipment.
5.11 Return on Equity:
Return on equity is a measure of a company's net income divided by its shareholders’

equity. A corporation's profitability and how efficient it is can be gauged by its ROE. The
better a company is at converting its equity financing into profits, the higher the ROE is.
ROEs of 15-20% are generally consider good.
ROE= Net profit after interest and tax / Shareholder’s fund
57
Year Net profit Shareholder’s fund Return on equity (%)
2018 67.22 1408.77 4.77
2019 109.02 1510.56 7.22
2020 113.16 1593.39 7.10
2021 112.94 1688.15 6.69
1800 1688.15 8
7.22 1593.39
1600 1510.56 7.1 7
1408.77 6.69
1400
6
1200
5
4.77
1000
4
800
3
600
2
400
200 109.02 113.16 112.94 1

67.22
0 0
2018 2019 2020 2021
Net profit Shareholder’s fund Return on equity (%)
Interpretation: The above table and chart indicate that KS&DL return on equity is less than
8% in each of the above-mentioned years. It is not good sign for the KS&DL. It indicates that
KS&DL is not converting its equity financing into profits. They have not earned more from the
return on capital.
5.12 Fixed assets turnover ratio:
Fixed asset turnover ratio matches fixed asset with sales revenue. This ratio shows the
efficiency with which the business uses its fixed assets for the purpose of generating revenue
and profits. A high fixed asset turnover ratio shows that the company is quickly turning its
fixed assets into sales.
58
Fixed assets turnover ratio = Net sales / Fixed assets
Year Net sales Fixed assets Fixed assets turnover ratio
2018 488.61 1261.94 0.3872
2019 568.25 1263.25 0.4498
2020 645.05 1279.23 0.5042
2021 786.32 1278.40 0.6151
1400 0.7
1261.94 1263.25 1279.23 1278.4
1200 0.6151 0.6
1000 0.5042 0.5

0.4498
786.32
800 0.3872 0.4
645.05
568.25
600 0.3
488.61
400 0.2
200 0.1
0 0
2018 2019 2020 2021
Net sales Fixed assets Fixed assets turnover ratio
Interpretation: The above table and chart indicate that KS&DL has lower fixed assets
turnover ratio (means less than 1). It indicates that a company is not using its assets efficiently,
may have internal problems and over invested in fixed assets. KS&DL cannot generate enough
revenue.
5.13 Proprietary ratio:
Proprietary ratio is a type of solvency ratio that is useful for determining the amount or
contribution of shareholders or proprietary towards the total assets of the business. It is also
known as equity ratio or net worth ratio.
59
Ideal proprietary ratio should be 50%.
Proprietary ratio= Shareholder’s fund/ Total Assets*100
Year Shareholders fund Total assets Proprietary ratio

(%)
2018 1408.77 1715.56 82
2019 1510.56 1896.58 80
2020 1593.39 1946.62 82
2021 1688.15 2029.60 83
2500 83.5
83 83
2029.6
1896.58 1946.62
2000 82.5
1715.56 1688.15
82 1593.39 82 82
1510.56
1500 1408.77 81.5
81
1000 80.5
80 80
500 79.5
79
0 78.5
2018 2019 2020 2021
Shareholders fund Total assets Proprietary ratio (%)
Interpretation: The above table and chart indicate that the proprietary ratio of KS&DL is
high. They maintained a proprietary ratio of more than 80% in each year of the above-
mentioned. It indicates that the company is in a strong position and provides relief to
creditors. The high ratio shows that KS&DL is not dependent on debt financing in order to
run its business. It also indicates that creditors will not lose their interest in providing
finance.
60
CHAPTER 6:
LEARNING EXPERINECE
Every student doing a professional course should undergo organizational study in his respective
field, which gives him a chance to explore his skills and also to know how an organization
works practically and its working environment.
The main objective of this organization study is to benefit the student in knowing how the
organization works. The students get to learn the basics of their education and train them into
realities.
The study shows that the company has grown tremendously since it was incorporated in 1918.
Now it has separate units for manufacturing sandalwood oil, incense sticks, toilet soaps,
washing soaps, detergents, cosmetics, and industrial products. They have demand for their
products in both domestic and international markets. They are not able to establish themselves
as market leaders due to a number of reasons such as lack of a proper distribution network, lack
of expenditure in the areas of advertising and publicity, and lack of timely decisions.
The organization study, to a greater extent, has helped me to understand the aspects such as
different areas of operation, overall organization functioning etc. Apart from these things, the
study was also able to help me understand the organization in depth with the application of
McKinsey’s 7’s framework with special reference to the organization under study, namely:
Structure, skill, strategy, system, staff, shared values and, lastly, the aspect of Porter’s five
force model and SWOT analysis of the organization.
My study in Karnataka Soaps and detergents Limited has helped me to know more about the
soap industry in India. Its growth, structure, functions and various other aspects, which build
the overall organization, are studied in detail in this report.
The more learning are as:
 This study is very useful as it confidence apart from theoretical knowledge.

 It helped me to know about the company position and its competitors.
 To find out about the welfare facilities adopted by the company.
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 To know the various departments effectively contribute towards the fulfillment of goals.
 To understand the relations between various departments and co-relations between them.
 The study also helped in understanding the financial aspects which may affect the
company’s growth.
 The ratios helped in analyzing the company’s position in the industry.
BIBLIOGRAPHY
REPORTS:
1. KS&DL Company handbook.

2. Annual reports of KS&DL Company.
WEBSITES:
1. www.mysoresandal.com
2. www.karnataka.gov.in/mysoresandal
3. http://www.indianmirror.com/indian-industries/soap.html
4. https://accountingverse.com
5. https://scripbox.com
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Karnataka Soaps and Detergents Limited

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INTRODUCTION ABOUT THE ORGANIZATION AND INDUSTRY

1.1 INTRODUCTION TO SOAP INDUSTRY: -

1.2 History of Indian Soap Industry:

a) Hindustan Unilever Limited

1.3 Present Status Size of industry:

1. The inflating income levels,

2. The shifting preference toward value added products,

3. The develop eco-friendly products, etc.

 Product type-premium products, mass products

1.4 Major players:

The most prominent and dominated Indian soaps companies are:

 Godrej consumer products Limited,

1.5 Introduction of organization:

2.1 Background of KS&DL:

Founders of Karnataka Soaps and Detergent Limited (KS&DL)

Fig.2.1 NALVADI KRISHNA RAJA WADIYAR

SOSALE GARALAPURY SASTRY

2.2 Nature of business:

2.3 Vision, Mission, Quality policy

1. KS&DL research center constant endeavor is continuously working on upgrading the

2.4 Product / Services profile:

Sl.no Name of the Weight of soap in Products

01 Mysore sandal 75 & 125

02 Mysore sandal 75 & 125

03 Mysore sandal 150

04 Mysore Sandal 150

07 Mysore sandal 3*150

08 Gift pack-3 in 1 3*150

09 Gift pack- 6 in 1 6*150

10 Mysore sandal 6*125

11 Mysore rose 100 & 65

12 Mysore carbolic 96 & 150

13 Herbal care soap 100

14 Wave soap- 75 & 100

16 Rose guest tablet 17

Sl.no Products Quantity Product

02 Mysore sandal 125 g

03 Mysore 1000g, 500g

04 Mysore sandal 1 litre

Sl.no Products name Products

01 Mysore sandal face pack

02 Mysore sandal oil

03 Mysore sandal baby powder

04 Mysore sandal coconut oil

05 Mysore sandal talc powder

06 Mysore sandal baby massage oil

07 Mysore sandal massage oil

Sl.no Products Quantity Product

02 Sandalwood 100,300& 1000

Sl.no Products name Quantity Products

01 Mysore sandal 20 sticks

02 Mysore sandal 20 sticks

03 Rose regular-9 20 sticks

05 Jasmine rolls 30&60 rolls

06 Sir M.V 100 100 grams

07 Nagachmpa 20 & 40 sticks

2.5 Ownership pattern:

“Wholly owned by Government of Karnataka”.

2.6 Achievements / Awards:

2.6.1 Milestone of KS&DL:

1916 – Mysore sandalwood oil factory started at Mysore.

1932 – Toilet soap production capacity was increased to 750 MTs/annum.