A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

Introduction and industry profile

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

Meaning:
Working capital is that part of the total capital which is used for carrying routine
business operations. in simple terms, working capital is the capital with which the
business of the company is worked over. working capital is the controlling system
of every business firm.

Nature and importance of working capital :

For a business firm, in order to fulfil its endeavour, to maximise the shareholders
wealth, a firm has to earn sufficient return from its operations, which needs a
successful sales activity. The firm have a invest sufficient funds in current to
succeed in sales, as the sales do not convert into cash instantaneously. This is
because of time gap between the sales of goods and the actual receipt of cash.
Hence there is a need for working capital in the form of current assets to sustain
the sales activity during that period.
since cash inflows and cash
outflows do not match, firms have not necessarily keep cash or investment in
short term liquid securities to fulfil its obligations as and when they become due.
The adequate stock of inventory provides a cushion against being out of stock
and helps as a guard to meet the demands for its products.
To be competitive the firm must sell its products to the customers in credit,
which necessitates the holding of accounts receivables. Therefore an adequate
level of working capital is absolutely for the smooth sales activity, as well as for
the smooth functioning of the business firm.

The working capital need arises for the following purposes:

❖ For purchasing raw material components and spare parts.
❖ For paying wages to labourers and salaries to employees.
❖ To meet day-to-day expenses and overheads costs like fuel, power and
office expenses.
❖ To meet various selling costs of packing advertising etc.
❖ To provides credit facilities to customer.
❖ To maintain inventories of raw materials, work-in-progress, spare parts
and finished goods.

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

Objective of working capital management:

The basic objective of working capital management is to manage firm’s working

capital i.e. current assets and current liabilities in such a way that a satisfactory
level of working capital is maintained i.e. neither excessive nor inadequate.
Excessive working capital brings higher profits at the cost of short term solvency.
An overall control over working capital can ensure a proper functioning of
business activities in an important decision making area of financial management
of an enterprise.
It requires an understanding of:

• How to raise and allocate financial resources?

• How to relate short-term investments and financial decisions to
the overall objectives of the firm?
• How to relate short term financial decisions to long term financial
decisions? Working capital is an integral part of every concern’s
financial structure since it plays a vital role in the smooth
functioning of the business.

Concepts of working capital:

There are two concepts of working capital, they are:
➢ Gross working capital concepts.
➢ Net working capital concepts.

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

Gross working capital concepts:

• Gross working capital refers to firm’s investment in its current assets.

Current assets are assets which can be converted into cash within an
accounting year (or operating cycle) and includes cash, short term
securities , debtors, bills receivables and inventories.
• The gross working capital is a financial concept. It is also called as “current
capital” or “circulating capital” and is represented as sum total of current
assets of and enterprise.
• The gross working capital concept focuses attention on two aspect of
current assets of and enterprise.
• Optimum investment in current asset.
• Financing in current assets.

Net working capital:

Net working capital is the difference between current assets and current
liabilities. It may be positive or negative. A positive working capital arises when
current assets exceed current liabilities, and a negative working capital occurs
when current liabilities exceed current assets.
i.e. Net working capital= current assets – current liabilities
Net working capital is a qualitative concept and it indicates the:
• Liquidity position of the firm and
• Suggests the extents to which working capital needs may be financed by
permanent sources of funds.
The current assets of the firm should be sufficiently in excess of current to
constitute a margin of maturing obligations within the ordinary operating cycles
of the business. A weak liability position poses a threat to the solvency position
of the firm makes it unsafe and unsound. A negative working capital may prove
to be harmful for the company’s reputation on the other hand; excessive liquidity
is also bad which may lead tom mismanagement of current assets.
The net working capital concept also covers the question
of judicious mix of long term funds for financing the current assets. Every firm
needs a minimum amount of net working capital, which is permanent. Hence a
portion of working capital should be financed with the permanent sources of
funds such as owner’s capital debentures, long term debts, preference capital or
retained earnings. Management must therefore decide the extent to which
current assets should be financed with long-term sources.
Current assets :

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

Current assets are those asset which in the normal course of business
convertible into cash within a short period of time of i.e. an accounting year
Components of current assets:
✓ Stock of material in trade and in transit
✓ Stores and spares parts
✓ Sundry debtors
✓ Bill of exchange
✓ Short term loans and advances
✓ Deposits
✓ Cash and bank balance
✓ Investment in government and other securities
✓ Amount due from subsidiary companies
✓ Prepaid expenses
✓ Outstanding income

Current liabilities:
Current liabilities include all the obligations of the concern that are
maturing within an accounting year.

Components of current liabilities:

✓ Sundry creditors
✓ Loans from banks and others
✓ Provision for taxation, dividend, income received in advance
✓ Liabilities towards gratuity, outstanding expenses

Financing decision of working capital:

The reason for the variation in the amount of investment in current assets
may be such as non-payment of debts owing to financial stringency of some
important customers, scarcity of raw materials, like in raw materials prices,
strikes, lockouts, etc. The need for such changes in working capital are of short
term in nature which should be met by short term funds for a growing concern,
the working capital requirement of fixed assets. The latter can be met ultimately
by cash inflows.

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

Methods of estimating working capital:

Usually there are two methods followed for estimating working capital
requirements:

➢ Conventional method:
In this method, cash inflows and cash outflows are matched with
each other. Greater emphasis is laid on the liquidity and greater
importance is attached to current ratio, liquidity ratio, etc which pertains
to the liquidity of the business.
➢ Operating cycle method:
In this method, operating cycle refers to the length of time
involved between the sales and their actual realisation in cash.
In other words, it is the cycle time required in the conversion of
• Cash work in progress
• Work in progress to finished goods
• Finished goods to accounts receivables
• Accounts receivables to cash
Classification of working capital :
The operating cycle is a continuous process and therefore the need for current
assets is felt constantly. The magnitude of current assets need not always be the
same, it increases or decreases over time depending on the business
transactions.

➢ Permanent of working capital:

Permanent or fixed working capital is the amount of working capital that remains
in the business permanently in one or the other form. This is the minimum level
of current assets that are continuously required by the firm to carry out business

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

operations. The need for working capital will fluctuate over and above
permanent working capital depending upon the changes in production and sales.

• Initial working capital:

In the beginning any company do not have regular sales and eranings. Company
requires time to establish its credit worthiness in the market.

• Regular working capital:

Some minimum stock of raw materials, finished goods has to be
maintained to run the business smoothly. No return can be expected from the
regular working capital as they are permanently locked up. Hence, it is required
to be financed from long term funds.
➢ Variable working capital:

Variable or temporary capital is the type of capital that fluctuates from

time to time with the changes in the volume of the business. It is the
additional investment in current assets required at different times during
the operating year.

• Seasonal working capital:

This is required to meet the business operations of some seasonal

industries. During the season time, the firm is required to source its needs
to meet the seasonal demands.

• Special working capital:

This includes the funds needed to finance the special business

operations. This reserved capital is developed to meet emergencies,
unforeseen contingencies, or to adjust with the extra demand, extra
production, extra purchase, etc.

Both kinds of working capital , permanent as well as temporary are

necessary to facilitate production and sales throughout the operating
cycle. Temporary working capital, which is created by the firm to meet its
liquidity requirements, will last temporarily.

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

Adequacy of working capital:

A firm must have to invest sufficient funds in working capital. It should
neither be excessive nor inadequate. Both situations are dangerous. Excessive
working capital means the firm has idle funds, which earns nothing for the firms.
Inadequate working capital means the firm does not have sufficient funds to
meet its current obligations.

Sources of working capital:

❖ Commercial banks: The different forms of loans provided by commercial

banks are as follows:
• Loans
• Cash credit
• Overdrafts
• Purchasing and discounting of bills

❖ Indigenous bankers: It refers to private money lenders and other country

bankers. The interest rates are very high in such cases.

❖ Trade creditors: It refers to the credit extended by the supplier of goods

in the normal course of business. When a firm delays a payment beyond
a due date it is called stretching.

❖ Instalment credit: This is a method where assets are purchased and the
possession of goods is taken immediately but the payment is made in
instalment over a period of time.

❖ Factoring: A commercial bank may provide finance by discounting the

bills or invoices to its customers. Thus a firm gets immediate payment for
sale made on credit. A factor is a financial institution which offers
services relating to management and financial debts arising out of credit
sales.

❖ Commercial papers: It represents unsecured promissory notes issued by

the firms to raise short term funds. The reserve bank of India introduced
commercial paper in India on the recommendations of vague committee.

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

Determinants of working capital:

There are a number of factors which influence in determining the
working capital needs and each factor has their own importance in the issue. The
chart below shows the factors which determine the working capital needs of an
organisation.

➢ General factors:
✓ Business cycle
✓ Price level changes
✓ External environment
✓ Growth & expansion

➢ Production and marketing factors:

✓ Nature of business
✓ Manufacturing cycle
✓ Nature of finished goods
✓ Competition
✓ Production policy
✓ Operating efficiency

➢ Financial factors:
✓ Credit policy
✓ Dividend policy
✓ Profit levels
✓ Repayment ability
✓ Capital market

➢ Government factors:
✓ Monitor policy
✓ Taxation policy

➢ Other factors:
✓ Past trend
✓ Management ability

The working capital is the part of the firm’s capital, which is required for
financing short-term or current assets such as cash, marketable securities.
Debtors& inventories and current liabilities. This is the capital which is
used for the day to day operations of the company and it measures the
company’s efficiency and financial health.

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

Current assets – current liabilities = working capital

The study is conducted at KS&DL. This company requires more working capital
for smooth running of the business. Hence, the study in this company would give
more exposure towards understanding working capital management.

Statement of the problem

To identify how the working capital is very much effective in the company
for their day to day operations. the need for the working capital cannot be over
emphasized. Every business needs some amount of working capital. The need for
working capital arises due to the time gap between production and realization of
cash from sales. Thus, in general working capital is needed for the following
purpose:
Need of the study
The study to understand:-
1. To pay wages and salaries.
2. To incur day-to-day expenses and overhead costs such as fuel, power,
office expenses, etc.
3. To meet the selling costs as packing, advertising, etc.
4. To provide credit facilities to the customers.
5. To maintain the inventories of raw material, work-in-progress, stores and
spares and finished stock.

Objective of the study

1. To study present working capital condition in the company.

2. To identify various factors affecting working capital requirement.
3. To assess liquidity position of the company with the help of ratios.

Scope of the study

Working capital can be positive or negative, depending on how much of current
debt the company is carving on its balance sheet. In general terms, companies
that have a lot of working capital will experience more growth in the near future
since they can expand and improve their operations using existing resources. On
the other hand, companies with small or negative working capital may lack the
funds necessary for growth or future operations. working capital also shows if
the company has sufficient liquid resources to satisfy short term liabilities and
operational expenses. It limited only to Bangalore Karnataka soap & detergents
ltd only.

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

Limitations of the study:

1. The study is limited as it being static position figures and it is not study of
depth.
2. The study of project is restricted to analysis. The study would not
contribute for forecasting and planning.
3. Analysing five years of data won’t give a clear picture of past transaction.

Soap Industry in India:Northwest soap company established the first soap

industry in 1897 at Meerut. Following the Swedish movement in 1905 onwards
few more factories movement in 1905 onwards few more factories were setup.
Soap industries in India began with MIS Godrej, setting up their manufacturing
unit during 1918 at Mumbai and MIS TATA oil mills company. Setup Hindustan
Lever Limited setup their manufacturing unit at Mumbai and Calcutta. The
industry continued to flourish very well unit 1967-1968, when the industry
stagnated due to informal price control. The industry soon recovered and
experienced a sharp up swing during 1974.

Before there world war 1, Soap requirement of India was met by imports
from the west, especially from United Kingdom. The big companies like lever
brother introduced soap and the use become more common even in villages. The
soap supplied was of good quality and low price.
Second world war give stimulates to indigenous soap industry, by 1994, the
capacity established was 1,26,000 tons and actual output was 1,16,000 tons. By
1957 the capacity went up to 2.53 lakhs tons. Today the production capacity is
around 6 lakhs tons ( Toilet soap market estimated to lakhs tons)

In India, the per capital consumption of soap is 500 mg compared to 1200 mg in

countries like Brazil. In case of detergents the per capita consumption is 1.60 kg
in India compared to 15.5 kg in urban Europe and 18.5 kg in Australia.
In the organized sector, 88 units are manufacturing soaps with an installed
capacity of 705 963(46 units only) tons per year production of soap in their
sector was of the order of 3,53,232 tons during 1994-95 and 3,88,087 tons during
1995-96. There are 33 units in the organized sector for manufacturing of
detergents with an installed capacity of 5,09,020(22 units only) tons per annum.
Until 1916, Karnataka, then the princely state of Mysore, was exporting
sandalwood to France and other European countries for the extraction of oil.
However, during first world war when huge stocks of wood piled up in the reup.

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

Since then Mysore became synonymous with sandalwood oil.sore became

synonymous with sandalwood oil.

Legends:
A popular saying is that no other tree can grow where the sandalwood does. The
reason for the belief could be the fact that the root of the tree is supposed to
suck in all the required nutrients needed for its growth from the nearby trees.
Another belief says that the smell of the wood is so intoxicating that snakes are
said to wrap themselves around the tree.

Uses:
The inner wood or heartwood is used for carving and the bark when powered is
an important raw material in the manufacture of agarbatti. For the extraction of
oil, used by the cosmetic and soap industry, the tree has to be uprooted, for it is
the roots that have the highest percentage oil.

Even spent wood after oil extraction is an important raw material in Agarbatti
manufacture. Sandalwood scrapings are powdered and sold in pouches. The
powder makes an excellent face and skin pack. A Hindu home usually has a billet
of the wood that is rubbed on a stone plate sprinkled with water and the
resulting paste is applied to the foreheads of idols during puj

An ancient Indian remedy for prevention of sunstroke is a glass of cold milk

scented with a drop of sandalwood oil. This drink is also supposed to prevent
boils and other skin ailments caused, according to the Indian school of medicine,
by excessive heat in the body.

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

CHAPTER- II
COMPANY PROFILE

introduction:
“Karnataka Soaps and Detergents Limited, a successor of the legislature soaps
factory, which will be a standout amongst the premier processing plants around
those Indian soaps industries.”
Origin of sandalwood also its oil clinched alongside Karnataka, which will be
utilized within making about Mysore shoe soap, will be great known as “ Fragrant
Ambassador of India” Furthermore sandalwood oil is indeed called as “Liquid
Gold.”
Mysore Maharaja by sowing the beginning seeds of KS&DL on the out skirts of
Kati Forest, abreast Bangalore in 1918. The activity took shape with the
engineering accomplishment and ability of a top-level aggregation with the
analysis of the Divan of Mysore Late Sir. S.G. Shastri, who bigger and fabricated
the action absolute of, accomplishment of sandalwood oil and world-famous
Mysore sandal soap.
The company produces varied products like bathing soap, detergents, cosmetics,
agarbathies and sandalwood oil. The flag ship brand of the company is Mysore
Sandal Soap which contributes to 75% of the company turnover. To be in line
with the FMCG companies continuous innovation and product development is
taken place in the company and new products are launched on regular basis. In
bathing soap, the company has successfully introduced Mysore Sandal
Millennium, Mysore Sandal Centennial, Mysore Sandal Rose bath tablet etc.
In soaps new variants are planned like Mysore Sandal youth soap, Mysore
sandals beauty soap and Mysore sandals health soap all in premium category.
The company is ready to launch Mysore sandals travel kit to target tourist and
hotel industry.
Soap is one among the commodities, which has become an important a part of
lifetime of the fashionable phantasy world. Since its non-durable commodity,
there’s an outsized market place for it. The whole soap industry is experiencing
changes thank to innumerable reasons like Government relations, environment
toxicological allergy problems, increase in cost of staple etc.

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

History of KS&DL
Eventually inspiration of highness Maharaja of Mysore late Jayachamarajendra
Wadiyar, those exchanging about sandalwood logs off which might have been
exported to Europe also new destinations, anyway for beginning of first world
war India faced extreme emergency on the benefits of the business of
sandalwood. This circumstance provided for climb should begin an industry,
which produces worth included items i.e. from claiming sandalwood oil. Height
Maharaja of Mysore made this circumstance under a chance by sowing those
seed about legislature sandalwood oil factory, which will be those available
KS&DL. Those projects might have been formed with the building aptitudes and
finesse of the top banana level Late Sir M Visvesvaraya, those great engineer
who might have been those mamoncillo behind the venture.
Those Maharaja for Mysore & Diwan Sir M Visvesvaraya created the legislature
cleanser plant throughout the year 1918. Those plant might have been beginning
a little unit close to K.R Circle, Bangalore for those ability from claiming 100
tonsils for every annum on 1918. Then, the plant moved its operation to
Rajajinagar streamlined area, Bangalore clinched alongside July 1957. Those
plant involves a territory about 42 sections of land on the Bangalore – Pune
roadway undoubtedly open toward transport administration furthermore
correspondence. Year of incorporation:
The company was incorporated in 1918 by the Maharaja of Mysore.

Management Govt. of Karnataka nominates/

appoints, Board of Directors,
Chairman & amp; MD
Renamed 1980
Trademark The trade is SHARABELA
At Bangalore Soap plant, Detergent lant Fa acid lant
At Mysore Sandalwood oil, Agarbathies
At Shivamoga Dut aid godown
Incorporation name Karnataka soaps & amp; detergents
Ltd.
Address Karnataka soaps & amp; detergents
Ltd Bangalore Pune highway post
BoxNo.5531, Rajajinagar Bangalore-
560055 Ph:080-3377691
Email: mysoresandal@vsnl.com
website: www.mysoresandal.com
Year of establishment 1918
Constitution Wholly owned by Government of
Karnataka

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Renaming of the company

On October 1st 1980, the legislature soap plant might have been renamed
concerning illustration “Karnataka Soaps & Detergents”. The organization might
have been enrolled similarly as a general public limited company. Today KS&DL
create varieties of items in latrine soaps, Detergents, agarbathies also talcum
powder. KS&DL need been manufactured up with rich convention for the nature
from claiming items. Mysore shoe soaps those No:1 anyplace in planet.

Trade mark of Mysore Sandal Soap: THE “SHARABHA”

Cutting on over will be ‘SHARABHA’, those trademarks of KS&DL. Those
SHARABHA may be fanciful making from those puranas also embodies the joined
ethics from wisdom, valor also strength, same time may be illustrated clinched
alongside body of lion with head of elephant.

It might have been embraced concerning illustration an official image of KS&DL

on symbolized the rationality of organization. Those symbolized control those
uprooted imperfections also impurities.
SLOGAN-“NARURAL PRODUCT WITH EXOTIC FRAGRANCES”

Nature of business:
The organisation &karnataka soaps & detergents may be a premiere soap
manufacturing organisatuon built in the state from claiming karnataka. Its way
about business is essentially manufacturing of toilet soap along with
soaps,detergents,incense sticks,talcum powder etc. the organisation may be in
operation to practically hundred a long time for an extensive variety of item
portfolios that extend from straightforward soaps should aroma soaps and
detergents. Its item go will be customized on help those necessities of the clients

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

starting with both the higher and more level salary start of the particular social
order.

Structure of organisation:

Managing
Director

General
Manager

AGM AGM
Manager Manager
(costing) (accounts)

Junior officer Junior officer junior officer

S R Assistant S R Assistant S R Assistant

J R Assistant J R Assistant J R Assistant

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

Milestone of company :

1918 Govt soap factory established by Mysore Maharaja with

limit for 112MTs annum close to cubbon park, Bangalore
and the Mysore Sandal Soap might have been acquainted
under the business sector for the first time.
1932 Toilet soap creation limit might have been improved with
750MTs/ annum.
1944 The second sandalwood oil extraction plant has been
established in Shivamogga.
1954 Base stone was by Sir M.Visvesvarayya for the starting of
new manufacturing at Rajajinagar, industrial suburb,
Bangalore.
1957 Plant was moved from cubbon park to the new premises.
1970 Preparation limit was expanded with 6000 MTS/annum, in
the period insightful for parallel modernization for
different manufacturing supplies.
1974 Mysore sales international limited might have been
designated similarly as those sole offering operators
about advertising its items.
1992 Company needs confronted altogether firm rival after
liberalization in the organizations in the nation from
diverse multi-national organizations.
1999 Organization might have been confirmed for ISO
9001:1994 confirmation toward BSI for its compelling
usage of quality management system.
2000 Agency might have been confirmed MTh ISO 14001
affirmation by BSI for its viable execution of
environmental management system.
2005 a) Launched new natural care soaps of 100gm contain
19 herbs and leaves extracted perfumes
b) Geographical indication registry
Mysore sandal soap
Mysore sandal oil
2006 ICWAI national award for excellence
2007 KS&DL prime products, Mysore sandalwood soap and oil
are accepted with bounded break as the bookish acreage
of India as per the bounded adumbration of
appurtenances act 1999.
2008 Agency need acquainted hand wash fluids under those
exchange stamp from claiming natural wash also rose
hand wash. Organization needs also acquainted fluid
cleanser under the exchange mark from claiming KLEENOL

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

with distinctive variants about floor wash, dish wash also

auto wash.
2009 Agency need created In-House state of the specialty
manufacturing offices to assembling furthermore filling for
Mysore shoe talcum powder also Mysore shoe baby
powder.
2010 Won Karnataka chief minister’s “RATNA AWARD” for
profited government.
2011 Those research and development of the agency may be in
the methodology advancement “THE MILLENIUM SOAP”
new results in super claim to fame from wash, fluid soaps,
room fresheners, particular figure shower aroma and
immaculate shoe wood powders for little pockets.
2012 The company arrived at most elevated bargains turnover
also profit organization may be once progressive
development for the most recent 10 A long time to
expanding its creation & sales volume. The organization
turnover need expanded from the quite a while 2003 to
Rs. 262 crores throughout those quite a while 2011-12
2013 They arrived at most noteworthy turnover also benefits
(322 crores over FY 2013) for 22nd august “National grant
to brilliance manufacturing cost” KSDL might have been
the victor openly manufacturing (medium
association)category.
2014 The company arrived most noteworthy deals turnover also
benefit throughout 2013-14 also may be around
progressive development for the most recent, 12 years by
expanding its creation and bargain volume. Those
turnover through out those quite a while 2013-14 might
have been Rs.353 crores with the net benefit of Rs.32.83
crores.
2015 Up arrangement of soap technology and allotment of new
curve for assembly planned. The company’s sales about-
face and net accumulation during 2014-15 is Rs. 357.02
crores and Rs.45.18 crores respectively, assuming the
advance of the aggregation in agreement of assembly and
sales year by year.
2016 The organization got compound remarkable fare on
cosmetician also toiletries board award on 8th February
over Mumbai starting with Nirmala Seetharaman Ministry
of business and industries Govt for India.
2017 KS&DL achieved its highest turnover of Rs.521 crores.
2018 KS&DL achieved its highest turnover of Rs.583 crores.
2019 KS&DL achieved its highest turnover of Rs.672 crores.

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KS&DL has the following Department:

• Human resource department (HRD)

• Production and Maintenance department (P&M)
• Marketing department (MKTG)
• Finance, Accounts & Audit department (Finance)
• Material and Store department (MTLS&Strs)
• Research & Development department (R&D) Quality control
department
• Foreign trade(FTD)
• Environment & safety department
• Welfare department
• Management information system department
Vision, Mission and Quality policy

Vision statement

• Keep pace for globalization, worldwide patterns & those state’s

strategy to use technology on every part for governance.
• Settling on accessible innovation organization item and
administrations at the most moderate cost of the kin in large, for
keeping for the policy of a welfare state.
• Settling on known crazy efforts to accomplish unfathomable profits.
• Above all with gain the precious foreign exchange, both of the state
also to the country.

Mission statements

• To serve those national economy.

• To push purity & calibre items.
• To keep up those brand loyalties of its clients.
• To expand upon those reputation of Mysore sandal soap in light of
pure sandal oil.
Quality policy

KS&DL commits to “ Customer Delight” from total quality management &

continue improvement by of all its employees.

ISO-9002 Certificate
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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

KS&DL with a convention about brilliance for through eight decades is

conferred customers delight, through Total Quality Management and
nonstop improvement through the contribution from employees.

ISO-14001 Certificate

The organisation is placed in the heart of the Bangalore city.

ISO-14001 also ISO-9001 will offices with move forward those corporate
brands in the worldwide market & it will help the organization will
enchance those benefits year on long term basis. Environment
management system embraced in the particular organization through this
intention as follows:
Conversion of energy
Conversion of surrounding
Conversion of resources

ISO-14001 Environment policies of KS&DL

Is committed to bottle the natural ambiance in the assembly of its quality

articles to the achievement of its customer.
Would invite & implement activity to abate all impacts that are
acceptable to be a source of affair to the environment.

Awards accredited to KS&DL

• “ Export Award” for the year 2006-07 for excellence in export market.
• “ National Award” for excellence in cost management and good
performance for the year 2008.
• “ Chief Minister’s Rathna Award “ for the year 2009-10.
• “ National Award” for excellence in cost management and good
performance for the year 2012.
• “ SAMMAN PATRA “ Award given by office of the Chief Commissioner
of central excise, Bangalore Zone for the year 2013-14.
Product profile

KS&DL will be the genuine inheritors from claiming brilliant legacy for
Indian it is proceeding those convention for excellence, utilizing main best
east India grade sandalwood oil & sandalwood cleanses in the reality.

Product of KS&DL are divided into 5 categories:

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

• Toilet soaps
• Detergents
• Agarbathies
• Cosmetics
• Sandal wood oil
• Liquid hand wash

Competitors information

HUL
Hindustan Unilever Limited (HUL) is an Indian customer appurtenances
aggregation based in Mumbai, Maharashtra. It is owned by Anglo-Dutch
aggregation Unilever which owns a 67% authoritative allotment in HUL
HUL’s articles accommodate foods, beverages, cleaning agents also
personal case products.

WIPRO

Wipro consumer care & lighting

WCCLG, a business assemblage of Wipro Limited operates in the FMCG
articulation alms an advanced ambit of consumable commodities.
Established in 1945, the first product to be alien by WCCLG was vegetable
oil after affected beneath the cast name “ Sunflower Vanaspati”. It offer
personal care products. Such as Wipro baby soft and Wipro safe wash,
toilet soaps like Santoor and Chandrika as able-bodied as all-embracing
brands like Yardley.

Product competitors

• LUX
• LIFEBUOY
• SANTOOR
• PEARSDETTOL
• REXONA
SWOT analysis of KS&DL
STRENGTHS

• World’s biggest generation for sandalwood oil.

• Differentiated product range keeps particular organization table
confirmed(certified) by ISO.

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• Main soap for India that holds pure sandal and almond oil.
• Brand names starting with decades in soap business.
• Has really well dealership organized over south which ensures that
products compass each client.

WEAKNESS

• Dissemination system weak in north & east.

• High oriented expenses(cost) because of excessive labour force,
• Absence of TV advertisement.

OPPORTUNITIES

• Skin care is accepting importance amid clients.

• Advantages of actuality in the industry for a continued time.
• Traditional allowances that sandal is acceptable for skin.
• Government abutement and ample production capacity.
• Existence of all inclusive market also more demand.

THREATS

• There is a charge for renovating plant and machinery.

• Govt action may abate growth potential.
• Other competitor’s articles such as Lux, Lifebuoy, Santoor, Rexona etc.
• Entry on new bunch (multinational) in soap business.

Future growth and prospects

• Introduction of anti-bacteria, natural transparent soap, constructed

out about 33 crucial oil-based perfume, alo vera, vitamin E and so on,
as added substance and suitableness for all types of skin & every
seasons.
• Acquaintance of new higher-powered cleanser powder for
institutional sales in bulk packing.
• To accomplish market heading.
• Change clinched alongside existing items Mysore sandal classic
improved moisturizer & skin condition.

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

• Introduction from claiming sandalwood powder done 50gms,100gms

will help those developing request to religious motivation.
• Diminishment over appropriation (distribution)costs.
• Introduction of new profession plan will build sales.
• Forceful promotion also publicity similarly as part of sales
advancement.
• Auspicious presentation & usage of market driven decision.
• Cost reduction in all ranges.
• Romance of managers, employees and related business segments.

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A STUDY ON WORKING CAPITAL MANAGEMENT AT KS&DL

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