Final Report Girish

ORGANISATIONAL STUDY AT KS & DL
PART-A
Industry Profile
School of Business Studies - MBS course, Bangalore-09
ORGANISATIONAL STUDY AT KS & DL INDUSTRY PROFILE:

Soap is one of the commodities which have become an indispensable part of the life of modern world. Since it is non durable consumer goods, there is a large market for it. The whole soap industry is experiencing changes due to innumerable reasons such as government relations environment and energy problems increase in cost of raw material etc. The changing technology and ever existing desire by the individual and the organization to produce a better product at a more economical rate has also acted as catalyst for the dynamic process of change. More and more soap manufactures are trying to capture a commanding market share by introducing and maintaining acceptable products. The soap industry in India faces a cut throat competition while multinational companies dominate the market. They are also facing severe threat from dynamic and enterprising new entrance especially during 1991-92. If we look back into the history of soaps & detergents, mankind knew about soaps nearly 2000 years back i.e. in 70 A.D. when Mr. Elder accidentally discovered the soap, when roasted meat over flowed on the glow in ashes. This lump like product was soap & had foaming & cleansing character. In 1192 A.D. the first commercial batch of soaps was made & marketed by M/s Bristol soap market in London, from there in 1662A.D. the first patent for making soap was taken in London. The world consumption of soap in 1884A.D. was said to be 2 lakh tonnes p.a.
HISTORY OF THE SOAP:

Soap manufacturing was started in North America. Some American companies with well known names were started 200 years ago. During middle age soap was made at various places in Italy, France, England & other countries. France became famous & many small factories were established there. In India the first soap industry was established by North West soap company in1897 at Meerat following the Swadeshi movement. From 1905 onwards few more factories were setup. They are, Mysore soap factory at Bangalore Godrej soap at Bombay Bengal chemicals Tata oil mills 1930 lever brothers company
THE INDIAN SOAP INDUSTRY SCENARIO: The Indian soap industry has long been dominated by hand full of companies such as: 1. Hindustan levers limited. 2. Tata oil mills (taken over by HLL) 3. Godrej soaps private limited. The Indian soap industry continued to flourish very well until 1967-68, but began to stagnate & soon it started to recover & experienced a short upswing in 1974. This increase in demand can be attributed due to; 1. Growth of population. 2. Income & consumption increase. 3. Increase in urbanization. 4. Growth in degree of personal hygiene.

5. Soap manufacture has 2 classifications, organized and unorganized sectors. KSDL comes under organized sector.
PRESENT STATUS:
Market scenario: India is the ideal market for cleaning products. The countrys per capita consumption of detergent powders & bars stands at 1.6kg & soaps at543Gm. Hindustan liver, which towers over the cleaning business, sells in all over the cleaning business but the tiniest of Indian settlements. The 7.4lakhs tons per annum soap market in India in crawling along at 4%. The hope lies in raising Rupee worth, the potential for which is high because the Indian soap market is pseudo in nature & it is amazingly complex being segmented not only on the basis of price benefits, but even a range of emotions within that outlining framework. PROBLEMS OF SOAP INDUSTRY: Soap industry faces some problems incase of raw materials. The major ingredients are soap ash, linear alkyl, benzene& sodium. Tripoli phosphate poses number of serious problems in terms of availability. The demand supply gap for vegetable oil is 1.5 to 2 lakhs tons & is met through imports. In recent times, caustic soda and soap ashes in the cheaper varieties of soaps are quite high.
Company Profile
COMPANY PROFILE:
INTRODUCTION TO SOAP INDUSTRY:Soap is one of the commodities, which has become an indispensable part of life of the modern fantasy world. Since it is nondurable consumer goods, there is a large market for it. The whole soap industry is experiencing changes due to innumerable reasons such as Government relations, environment, toxicological allergy problems, increase in cost of raw material etc. Following Swadeshi movement in 1905, few factories were set up and they were: 1. Mysore Government Soap factory at Bangalore. 2. Godrej Soaps at Bombay.
The changing technology and even existing desire by the individuals and the organization to produce a better product at a mere economical rate has also acted as Catalyst for the dynamic process of change. More and more Soap manufactures are trying to capture a commanding market share by introducing and maintaining acceptable products. The soap industry in India faces a cutthroat Competition, while multinational companies dominate the market.
THE INDIAN SOAP INDUSTRY SCENARIO: The Indian soap industry has been dominated by handful of companies such as 1. Hindustan Levers Limited. 2. Tata Oil Mills (Taken over by HLL ) 3. Godrej Soaps Private Limited.

4. Recent entrants include - Colgate Palmolive Ltd., - Proctor & Gamble Ltd., - Nirma Soap Works, The Indian Soaps industry continued to flourish very well until 196768, but began to stagnate. Soon it started to recover and experienced a short upswing in 1974. This increase in demand can be attributed to:1. Growth of population. 2. Income and consumption increase. 3. Increase in urbanization 4. Growth in degree of personal hygiene. Soap manufacturers are Classified as, Organized and unorganized sector. KSDL is under organized Sector. PRESENT STATUS: -
MARKET SCENARIO
India is the ideal market for cleansing products. The countrys per capita consumption of detergent powders and bars stands at 1.6 Kg and soap at 543gms. Hindustan Lever, which heralds over the cleaning business, sells in all over the cleaning business. PROBLEMS OF SOAPS & DETERGENTS INDUSTRY: Industry faces some problems due to increase in the cost of raw materials. The major ingredients like soda ash, linear alkyl benzene and Sodium Tripoli phosphate poses number of serious problems in terms of availability. The demand and supply gap of vegetables oil is 1.5 to 2 Lakhs tons and is met through imports. HISTORY:India is a rich land of forest; ivory, silk, sandal; precious gems are magical charms of centuries. The most enchanting perfumes of the world got their exotic spell with a twist of sandal. The worlds richest

sandalwood resource is from one isolated stretch of forests land in South India that is Karnataka. The origin of sandalwood and its oil in Karnataka, which is used in making of Mysore sandal soaps, is well known as Fragrant Ambassador of India & Sandalwood oil is infact known as Liquid Gold. By the Inspiration of His Highness Maharaja of Mysore late Jayachamarajendra Wodeyar, the trading of sandalwood logs started which was exported to Europe and New destinations, but with commencement of First world War India faced Severe Crisis on the business of sandalwood. This situation gave rise to start of an industry, which produces value added products i.e., of Sandalwood oil. His Highness Maharaja of Mysore created this situation as an opportunity by sowing the seed of the Government Sandalwood Oil Factory, which is the present KS&DL. The project was shaped with the engineering skills and expertise of the top level. Late Sir M.Visvesvaraya, the great Engineer who was the man behind the project. Todays famous Mysore sandal soaps credit goes to late Sri Sosale Garalapuri Shastri who incorporated the process of soap making using Sandalwood oil. He was an eminent scientist in the field working at the Tata Institute, Bangalore. He was sent to England to master the fine aspects of soap manufacturing. The Maharaja of Mysore & Diwan Sir.M.Visvesvaraya established the Government Soap factory during the year 1918. The factory was started as a very small unit near K.R.Circle, Bangalore with the capacity of 100 tons P.A. In November 1918 the Mysore sandal soap was put into the market after sincere effort and experiments were undertaken to evolve a soap perfume blend using sandalwood oil as the main base to manufacture toilet soap. The factory shifted its operation to Rajajinagar 8

industrial area, Bangalore in July 1957, where the present plant is located. The plant occupies an area of 39 acres (covering Soaps, Another Detergents and Fatty Acid divisions), on the Bangalore Pune Highway, easily accessible by transport services and communication. sandal wood oil division was established during the year 1944 at Shimoga, which stopped its operations in the year 2000 for want of Natural Sandalwood.
This factory started at a moderate scale in year 1916. The first product was washing soap in addition to the toilet soap in the year 1918. The toilet soap of the company was made up of sandal wood oil.
In 1950 Government decided to expand the factory in two stages. The first stage of expansion was done to increase the output to 700 tons per year and was completed in the year 1952 in the old premises.
The next stage of expansion was implemented in 1954 to meet growing demand for Mysore sandal soap and for this purpose Government of India sanctioned license to manufacture 1500 tons of Soaps and 75 tons of glycerine per year. The expansion project worth of Rs.21 lakhs includes the shifting of the factory to a newly laid industrial suburban of Bangalore.
The factory started functioning in this new premise [i.e., present one] from 1st July 1957. From this year onwards till date the factory had never looked back, it has achieved growth and development in production scales and profits. The industry has 2 more divisions one at Shimoga and another at Mysore where sandal wood oil is extracted. The Mysore division started functioning from 1917 and only during 1984 manufacturing of perfumed and premiere quality Agarbathies at was started. Right from the first log

of sandalwood that rolled into the boiler room in 1916, the company has been single minded pursuit of excellence. The project took shape with the engineering skills and expertise of top-level team under the leadership of Sir. M.Visvesvaraya, Prof. Watson and Dr.Sudbrough. Like this soap factory was started as a small unit and now it has grown up to a giant size. RENAMING: On 1st October 1980, the Government Soap Factory was renamed as Karnataka Soaps and Detergent Limited The Company was registered as a public limited company. Cosmetics. Today Company produces varieties of products in the toilet soaps, detergent, Agarbathies and
OBJECTIVES OF KS & DL: To serve the national economy
To attain self reliance To promote and uphold its image as symbol of traditional products To promote purity and quality products and thus enhance age old charm of Sandalwood Oil To build upon the reputation of Mysore Sandal soap based on pure sandal oil. To maintain the brand loyalty of its customer. To supply the products mentioned above at most reasonable and competitive rate.
VISION STATEMENT: Keeping pace with globalization, global trends and the states policy for using technology in every aspect of governance. Ensuring global presence of Mysore Sandal products while leveraging its unique strengths to take advantage of the
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current technology scenario by intelligent and selective diversification. Secure all assistance and prime status from Government of India, all technology alliances. Making all out efforts to achieve reasonable profits. Most importantly to earn the invaluable foreign exchange, both to the state and to the country.
MISSION STATEMENT: To serve the National economy. To attain self-reliance. To promote purity & quality products To maintain the Brand loyalty of its customers. To build upon the reputation of Mysore sandal soap based on pure sandal oil.
COMPETITORS OF KS&DL PRODUCTS AND SERVICES:KS&DL is facing cut-throat competition in national and international market. Some of its main competitors are: M/S. Hindustan Uni Lever Ltd., M/S. Godrej Soaps Private Ltd., M/S. Proctor& Gamble M/S. Wipro M/S. Nirma Soaps Private Ltd., M/S. Jyothi Laboratories TRADEMARK OF KS & DL:The SHARABHA The carving on the cover is the sharabha, the trademark of KS & DL.
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The sharabha is a mythological creation from the puranas which has a body of a lion and head of elephant, which embodies the combined virtues of wisdom and strength. It is adopted as an official emblem of KS& DL to symbolize the philosophy of the company. The sharabha thus symbolized a power that removes
imperfections and impurities. The maharaja of Mysore as his official emblem adopted it. And soon took its pride of place as the symbol of the Government Soap Factory of quality that reflects a standard of excellence of Karnataka Soaps and Detergent Limited. SLOGAN:NATURAL PRODUCTS WITH EXOTIC FRAGRANCES KS & DL has a long tradition of maintaining the highest quality standard, right from the selection of raw materials to processing and packing of the end product. The reasons why its products are much in demand globally and are exported regularly to UAE, Beharen, Saudi-Arabia, Kuwait, Qatar, South America. The entire toilet soaps of KS & DL are made from raw materials of vegetable origin and are totally free from animal fats. POLICY OF KS&DL: Seek purchase of goods and services from environment responsible suppliers. Communicate its environment policy and best practices to all its employees implications. Set targets and monitor progress through internal and external audits. Reuse and recycle materials wherever possible and minimize energy consumption and waste.
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BIRDS EYE VIEW OF KS&DL:1918 Government Soap Factory was started by Maharaja of Mysore and the Mysore Sandal Soap was introduced into the market for the first time. 1950 - The factory output rose to 500 M.Tons with the following modifications. 1. Renovating the whole premises. 2. Installing new boiler soap building plant and drying chamber. 1954 Received license from Government to manufacture 1500 tons of soap and 75 tons of glycerine per year. 1957 Factory shifted its operation to Rajajinagar industrial area. 1974 Mysore sales international limited was appointed as the sole selling agent, for marketing its products. 1975 Rs.4 Crores synthetic detergent plant was installed based on Italian technology by Ballestra SPA. 1980 - On 1st October 1980 the Government Soap Factory was converted into a public sector enterprise and renamed as Karnataka Soaps & Detergents Limited. 1981 a) Production capacity increased to 6000 tons, b) Rs.5 Crores Fatty Acid Plant was installed. 1984 Manufacturing of premium quality of Agarbathies at Mysore division. 1985 Production capacity was raised to 26,000 M.Tons Per Annum. A large variety of toilet soaps at attractive shapes, colors and fragrances introduced to meet the varieties & tastes of consumers. 1992 The company was registered with the Board for Industries and Financial Reconstruction (BIFR), New Delhi in December for rehabilitation, as the company suffered losses continuously since 1980 at its net worth fully eroded. 1996 The BIFR approved the rehabilitation scheme in September & the Company stated making Profits.
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1999 ISO-9002 Certificate for quality assurance in production, installation and Servicing. 2000 ISO-14001 certificate pertaining to environmental management system. 2003 The entire carried forward loss of Rs.98 Crores wiped out and in May BIFR, declared the company to be out of its Purview. The Company is making profit continuously, It is only State Public Sector unit that has come out of BIFR. 2004 The ISO-9002 was upgraded to ISO-9001-2004, Quality Systems. 2006-07 PRESENT STATUS OF THE COMPANY The company is mainly dependent on southern market. The product availability in retail outlets particularly for Mysore sandal soap is almost comparable to any other similar industries products in the premium segment in the south. Whereas in other parts like Eastern & Northern markets penetration of KSDL product is relatively poor, which depends on the companys distribution structure, stockiest and field personnel strength. With increased trust on distribution, the company does not foresee any problems to achieve the projected sales through the redistribution package. Further, the policy of Indian Government also sees the public sector enterprises enter the industry in a large way there by making the products available to the consumers at reasonable prices. Being located in the centre of southern part of India the Government Soap Factory claims preferential treatment for expansion programmed in view of availability of exotic natural Sandalwood oil. AN ISO-9001 COMPANY: KS & DL with a tradition of excellence of over eight decades is committed to customer delight, through total quality management and
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continuous improvement through the involvement of all employees. KS&DL has got ISO 9002 certificate. To improve the quality management system and to facilitate TQM in the process of soap and detergent, the management took decision to obtain ISO-9002 by end of March 1999. with a mission statement. The company gives initial training including conducting employees awareness programme, document quality manual and quality system procurement. In this direction company obtained the guidance from Accordingly action plan was drawn and a committee was set up for the purpose during October 1998
Consultancies, Bangalore and Bureau of Indian Standards, Bangalore. Accordingly, company standards registered for ISO 9002 by the end of March to the Bureau of Indian Standards. Obtained the certificate by the end of March 1999 itself. This is to project in the national and international market and also to improve quality of products offered to the consumers with the assurance of quality in the message. The Company got itself upgraded to ISO-9001-2004, Quality Systems in the year 2004-05. ISO-14001:The company is located in the heart of the Bangalore city. The management of the company took a decision to get the ISO-14001 and become model to other public sector for the techniques used and also to other Government units to spread the message of maintenance of environment. ISO-14001 and ISO-9001 will facilitate to improve the corporate brands in the global market and it will help the company to improve the
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profits, follows: year after year on long-term basis. The environment
management system adopted in the company through this motive as
Conservation of energy Conservation of Surrounding Conservation of resources. Equipped with latest technology and backed by full-fledged quality control and R&D support, KS&DL is marching confidentially ahead in the new millennium. The Company is developing new products to meet the changing preferences of its customers. THE BIRTH OF A LEGEND:The early year of the 20th century witnessed the birth of a magical formula, created from the finest and purest sandalwood oil, better known as liquid gold, distilled exclusively at our divisions in KarnatakaMysore. A fragrant gift to the world from the first Government Soap Factory of India. Nurtured by the Maharaja of Mysore, enriched with all the goodness of natural sandal wood oil, this unique soap captured hearts and markets at home, as well as right across the globe creating a fragrant legacy for the state of Karnataka. Karnataka Soaps and Detergents limited (KS&DL) is the true inheritor of this golden legacy of India. Continuing the tradition of excellence for over eight decades, using only the best Grade sandal wood oil in its product range, KS&DL today in one of the largest producers of Sandal wood oil and sandal wood soaps in the world. PRODUCT MANUFACTURED BY KS&DL:-
TOILET SOAPS
NAME OF THE PRODUCT Mysore Sandal Soap Mysore Sandal Classic Soap Mysore Sandal Gold Soap UNITS OF GRAMS 75, 125 75 75, 125 16

Mysore Sandal Baby Soap Mysore Special Sandal Soap Mysore Rose Soap Mysore Sandal Herbal Care Soap Mysore Jasmine Soap Wave Soap Mysore lavender Soap Mysore Sandal bath tablet Mysore Sandal classic bath tablet Mysore Mysore Mysore Mysore Jasmine bath tablet Special Sandal tablet Sandal rose tablet Sandal Guest tablet 75 75 100 100, 125 100 100 150 150 150 150 150 150 17
GIFT RANGE SBT SJR 06 IN 01 GOLD SIXER
DETERGENTS
NAME OF THE PRODUCT Mysore Mysore Mysore Mysore detergent detergent detergent detergent powder powder Cake cake
UNITS IN GRAMS
1000 500 125 250
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TALCUM POWDERS
NAME OF THE PRODUCT Mysore Sandal Talc Mysore Sandal Baby Talc
UNITS IN GRAMS 20, 50, 100, 300 100, 200, 400
AGARBATHIES
NAME OF THE PRODUCT

Mysore Sandal Premium Mysore Sandal Regular Mysore Rose Nagachampa Suprabhatha Mysore Jasmine Parijata Sir M.V.100 Bodhisattva Venkateshwara Durga Ayyappa Alif Laila Meditation
PRODUCT PROFILEKS&DL is the true inheritor of golden legacy of India. Continuing the tradition of excellence for over eight decades, using only the best East Indian grade Sandalwood oil & Sandalwood soaps in the world. The products produced at KS&DL are the Soaps, Detergents, Agarbathies and Sandalwood oil.
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ORGANISATIONAL STUDY AT KS & DL PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL SOAP
a. Mysore Sandal Soap (75gm,125gm & 150gm)
b. Mysore Sandal Special Soap
(75gm)
c. Mysore Sandal Baby Soap
(75gm)
d. Three-In-One Gift Pack (SJR) 3Tabs
(150gm Each)
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e. Mysore Sandal Gold Soap (125gm)
f. Mysore Rose Soap
(100gm)
g. Six-In-One Gift Pack- 6Tabs
(150gm Each)
h. Mysore Sandal Gold sixer 6 Tabs
(125gm Each)
i. Mysore Sandal Soap Bath Tablet Trio 3nos. (150gm Each)
j. Mysore Sandal Classic Soap
(75gm) 20

k. Jasmine Bath Soap l. Mysore Jasmine Soap (75gm) (100gm)
DETERGENTS:
KS&DL also manufactures high quality detergents applying the latest spray drying technology with well balanced formulation of active matters & other builders; they provide the ultimate washing powder. 1. Sensor Detergent Powder 2. Mysore Detergent Powder 3. Mysore Detergent bar 4. Mysore Detergent Cake (1kg/2kg) (1kg/500gms) (250gms) (125gms/250gms)
AGARBATHIS:
1. Mysore Sandal premium 8. Mysore sandal 2. Mysore Rose 3. Suprabath 4. Parijata 5. Venkateshwar 6. Ayyappa 7. Chandhana 9.Nagachampa 10.Mysore Jasmine 11.Bodhisattva 12.Durga 13.Alif Laila
SANDALWOOD OIL:
In 5ml, 10ml,20ml, 100ml,500ml,2kg,5kg,20kg,and 25kg packing.
POWDERS:
1. Mysore Sandal Talk: Cooling & Healing, Fragrant freshness, Net. Wt 20gm, 60gm, 300gm and 1kg. 2. Mysore Sandal Baby Powder: Tender loving care for baby& Mummy. Net wt 100-400gms.
AREA OF OPERATION:
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GLOBAL FAVOURITES FOR THEIR NATURAL GOODNESS: KS&DL has a long tradition of maintaining the highest quality standards, right from the selection of raw materials to processing and packaging of the end product. The reason why its products are much in demand globally & are exported regularly to UAE, Bahrain, /Saudi Arabia, Kuwait, Qatar, South East Asian countries as well as North America & South America. The sandalwood oil, of course, is much sought after by the leading perfume houses of the world. All the toilet soaps of KS&DL are made from oils & fats of vegetable origin & totally free from animal fat.
OWNERSHIP PATTERN:
Wholly owned by Government of Karnataka.
COMPETITORS SHARE:
HLL
INFORMATION
70% 4% 10% 11% 5%
AND
THEIR
MARKET
Godrej Procter & gamble KSDL Others
PRESENT STATUS:
1. The company has entered into shampoo, dish wash, detergent bar & room refresher. 2. The company is striving to develop new perfumes for soaps detergents, agarbathies & shampoo. 3. The company wants to improve the existing products in terms of quality.
INFRASTRUCTURAL FACILITIES:
1. Canteen facility
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2. Library 3. Car stand 4. Waiting room
WORK FLOW MODEL:

SILOS (Silos are closed chambers) Soaps Noodles Container Mixer Simplex Plodder It becomes NOODLES Milling It becomes soap ribbons Duplex plodder Cutting Machine Cakes are led to Stamping Machine Wrapping machine Led through the conveyor belt
ACHIEVEMENTS/AWARD:
1. Government of Karnataka Dept of Industries and commerce State Export Promotion Advisory Board. EXPORT AWARD 197475 2. Detergent Plant M/s Chemical Bombay have given 1st price for the year 1980-81
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3. Geographical Indication GI-2005 4. ISO 9001-2000 in the year 1999 5. ISO 14001-2004 in the year 2000
FUTURE GROWTH AND PROSPECTUS:

Introduction of anti-bacteria, herbal transparent soap, made out of 33 essential oil based perfume, Aloe Vera, Vitamin-E etc as additive and suitable for all types of skin and all seasons. Improvement in existing products Mysore Sandal classic improved moisturizers & skin conditions. Introduction of sandalwood powder in 50gms, 100gms to meet the growing demand for religious purpose. Introduction of new higher powered detergent powder for institutional sales in bulk packaging. To attain market leadership. Introduction of new trade schemes to increase sales. Aggressive advertisement and publicity as part of sales promotion. Reduction in distribution expenses. Cost-reduction in all areas. Instant decision making in certain procurement activities. Timely introduction and implementation of market driven decisions. Ensuring effective internal control.
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ORGANISATIONAL STUDY AT KS & DL STRUCTURE OF ORGANISATION: A. BASIS OF DEPARTMENTATION

KS&DL is a manufacturing concern of moderately large size. We can see here functions wise departmentation. It facilitates effective utilization of manpower and resources and it is a simple, economical and reasonable organization pattern. B. LEVELS OF ORGANISATION The organization of KS&DL consists of 4 levels, they are TOP LEVEL consisting of BODs and M.D SECOND LEVEL consisting of Directors of Finance and Special officers THIRD LEVEL consisting of senior of managers, deputy and managers and officers. FOURTH Attendees. C .ORGANIZATION CHART OF KS&DL KS&DL is Functional type of organization. Under this type of organization men with special abilities in a specialized function are employed. The hierarchy is represented as follows. LEVEL consisting clerks, Assistants
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KS&DL AT GLANCE:Incorporated Name Address - Karnataka Soaps and Detergents Limited. - Karnataka Soaps and Detergents Limited Bangalore Pune High Way Post Box No.5531, Rajajinagar, Bangalore 560 055 Ph: 080-3377691/3370469/23371103 to 06 22376922 to 24 Email : Mysorsandal @ vsnl.com Website : www.mysoresandal.com Year of Establishment Constitution - 1918 - Wholly owned by Govt. of Karnataka Undertaking
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Management Govt.of Karnataka nominates/appoints Board of Directors. Chairman & MD Renamed Trademark 1980 The trademark is SHARABHA. It is the Body of lion with the head of an elephant means blending the intelligence of lion with strength of an elephant. Production range Toilet soaps, bar soaps, Detergent Cakes, Powders, Agarbathies, Cosmetics, Baby products, Sandalwood Oil.
Process know how
The facility is a pioneer in the Manufactures of various soaps and technology Imported from Italy.
Capacity of the Unit
Licensed capacity is 26,000 metric tons of Soaps & 10,000 M.Tons of Detergents Per annum
Plants
At Bangalore Soap Plant Detergent Plant Fatty Acid Plant
At Mysore Sandal wood Oil Agarbathies
At Shimoga Duty Paid Godown
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PART-B McKinseys 7S Framework
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ORGANISATIONAL STUDY AT KS & DL McKinseys 7S Framework

According to Waterman, organization change is not simply a matter of structure, although structure is significant variable in the management of change. Again it is also not a simple relationship between strategy and structure, although strategy is also a critical aspect. In their view effective organizational change may be understood to be a complex relationship between strategy, structure, system, style, skills & shared values. The first three elements-strategy, structure &system are considered the hardware of success. The next four style skills, staff, and shared values are called the software. The complex relationship is diagrammatically presented below;
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FUNCTIONAL DEPARTMENTS OF KS&DL
Human Resources Department Production Department Marketing Department Finance\Accounts Department Research & Development Department Stores Department Welfare Department Maintenance Department Materials Department Management Information System Department Quality Control Department
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HUMAN RESOURCE DEPARTMENT:
ORGANISATION STRUCTURE OF HRD DEPARTMENT
MANAGING DIRECTOR
ASST.GEN.MGR [HRD] MGR [HRD]
FIRST AID
CANTEEN TIME OFFICE OFFICER [HR
VMO
LWO
JR. OFFICER
ASST.MGR
SR.ASST. JR.OFFICERS
SENIOR ASSTS
JR.OFFICER
HELPER
SR.ASSTS.
ATTENDER
SR.ASSTS
ATTENDER Cooks
Helpers
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01 02 03 04 05 06 07 08 09 10 11 12
M.D Asst.Gen.Mgr Mgr [HRD] Asst.Mgr [Canteen] LWO VMO Officer [HRD] Jr.Officer [HRD] Sr.Asst.s Attainder Cooks Helpers
Managing Director Assistant General Manager [HRD] Manager [HRD] Assistant Manager [Canteen] Labour Welfare Officer Visiting Medical Officer Officer [HRD] Junior Officer [HRD] Senior Assistants Attainder Cooks Helpers
Luther Gulick highlighted POSDCORB which stands for planning organizing, staffing, Directing, Coordinating, Reporting & Budgeting is the part of personnel management. Personnel management performs lot of function in KSDL. 1. Recruitment 2. Implementing. 3. Training 4. Cordial relationship of Industry 5. Disciplinary matters 6. Performance appraisal 7. Employee safety etc KEY FUNCTIONS OF THE HRD:1) Recruitment and Selection 2) Training and Development 3) Promotion and Transfer 4) Wages and salary administration
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5) Performance Appraisal 6) Industrial Relations 7) Disciplinary Action and 8) Welfare Measures
Cordial relation with Trade unions:

KSDL is trying its level best to ensure healthy & cordial relation with trade unions in all matters regarding industrial disputes & employee satisfaction. Personnel management is act as a mother as it ensures people are treated perfectly well & widening the scope of the employees.
MAN POWER DETAILS: GROUP Executives Supervisor s Workers Total Bangalore 85 49 548 682 SOD Mysore 07 10 30 47 Marketing branches 56 15 39 110 Duty paid Godown Shimoga 02 16 18 Total 150 74 633 857
FRINGE BENEFITS PAYABLE TO THE UNIONIZED CADRES EMPLOYEES

1. Shift Allowance: There are three shifts and one general shift. The office hour is from 9.30am 5.30pm. The shift timings are as follows: First Shift Second Shift Third Shift General Shift 6.00am to 2.00pm 2.00pm to 10.00pm 10.00pm to 6.00am 7.30am to 3.30pm
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The lunch time is from 12.00pm to 12.30pm. Every Sunday is rest day for the employees. No allowance is paid to the first shift workers; a sum of Rs.25 and Rs.35 per day is paid to workers for second and third shift respectively. 2. Washing Allowance: The company provides two sets of uniform once in a year. For this a washing allowance of Rs.50 per month is paid to every worker. 3. Leave: The company provides: Earned Leave (EL): Workman who wishes to avail privilege leave shall apply at least 3 days in advance to General Managers. This leave can be accumulated and encased. 18 days EL is credited to an employee. It can be encased and for this purpose the basic+ DA to the employee is calculated for 26 days but paid for 15 days in a year. Casual Leave (CL): The leave is to meet unforeseen
circumstances and is granted for 3 days at a time and 7 days CL is given to an employee per year. Sick Leave (SL): Workman who avails sick leave exceeding
3 days at a time should produce medical certificate from Doctor. 15 days of sick leave is given for an employee per year and it can be encashed. 4. Conveyance Allowance: The conveyance allowance of Rs.595 per month per workman is extended. 5. Special Allowance: Paid to Typists, Stenographers,
Asst.Cashiers, and Store Keepers from Rs.55 to Rs.75.
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6. Family Travel Allowance: This allowance is paid at the rate of Rs.500 per employee per year who has put a minimum three years of service. 7. Canteen Facilities: All employees are provided with canteen facility at highly subsided rate. 8. Annual Bonus: It is agreed to pay the profit sharing bonus in terms of the provisions payments of Bonus Act 1965. 9. Attendance Bonus: It is paid equivalent to one days basic pay subject to minimum of Rs.75 per month. 10. House Building Advance (HBA), House Repair Advance, House Purchase Advance: KS&DL has agreed to provide subsidy on the loan amount secured by the employee from HDFC or any recognized scheduled banks etc., If the interest payable by the employee exceeds 7% then he shall be eligible for interest subsidy to be borne by the company not exceeding 5%. 11. Festival and National Holidays: Number of paid holidays in the company is 10 festival holidays and 3 national holidays per calendar year. 2 holidays will be treated as restricted festival holidays to be selected by the employees from the list of holidays to be notified by the company for this purpose. 12. Death Relief Fund: Rs.30,000 will be paid to the nominee in case of death of an employee. 13. financial institutions viz., co-operative banks,
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14. Memento to retiring employee: Rs.2,500 will be paid as memento to retiring employees. 15. Medical Reimbursement: Benefit to non-ESI employees a sum
of Rs.500 per month will be paid per employee towards domiciliary treatment. With regards to hospitalization treatment, the company has taken mediclaim policy from Insurance Company for a sum of Rs.1,50,000 per employee, which includes spouse and two children. 16. Postponement of Increment: Postponement of the annual
increment automatically in respect of the employees who are absent without pay corresponding to the period apart from taking disciplinary action as per provisions of standing orders
Units Absence without pay for more than 30 days less than 40 days. Absence without pay for more than 40 days less than 70 days. Absence without pay for more than 70 days less than 100 days.
Postponement of increment by One month 2 months 3 months
36
PAY SCALE OF UNIONSED CADRE EMPLOYEES W.E.F. 01.05.2008 TO 30.04.2013
Group SI.NO 01 I II 02 03 04 05 06 07 III IV V VI VII VIII
Revised Pay Scale 5140-110-5690-140-6390-170-7240-200-8240 5250-110-5690-140-6390-170-7240-2008240-240-9440 5690-140-6390-170-7240-200-8240-2409440-280-10840 5970-140-6390-170-7240-200-8240-2409440-280-10840-330-12490 6110-140-6390-170-7240-200-8240-2409440-280-10840-330-12490-400-14490 6390-170-7240-200-8240-240-9440-28010840-330-12490-400-14490-500-15990 7240-200-8240-240-9440-280-10840-33012490-400-14490-500-17990 8240-240-9440-280-10840-330-12490-40014490-500-17990-600-19190
37
PAY SCALE OF OFFICERS W.E.F. 01.07.2008
SI.NO 01 02 03 04 05
Designation Jr. Officer Officer Asst. Manager Manager Asst. Gen. Manager
Revised Pay Scale 10000-100-10500-300-12300-350-14400400-16800-450-18150 10800-300-12300-350-14400-400-16800450-19500-525-20025 14050-350-14400-400-16800-450-19500525-22650-600-25050 18150-450-19500-525-22650-600-26250675-26925 20025-525-22650-600-26250-675-28275
06
Dy. Gen. Manager Gen. Manager Director
22125-525-22650-600-26250-675-30300
07 08
24450-600-26250-675-30300-750-31800 26250-675-30300-750-34800-850-36500
THE COMPANY HAS FORMULATED THE FOLLOWING HR POLICIES: 1. Carrier Development Plan and Promotion Rules for Officers. 2. Time Bound Advancement Scheme for Unionized Cadre employees. 3. Standing orders applicable to Unionized Cadre employees. 4. KS&DL Conduct and Disciplinary Action Rules 1984 for Junior Officers and above. 5. Medical Attendance Rules. 6. Leave Rules with encashment benefit. 7. LTC / FTA. 8. Conveyance Allowance. 9. Education Advance.
38

10. 11. 12. 13. 14. 15. 16. Festival Advance. TA / DA Rules. HBA / Interest Subsidy. Delegation of Powers. Probationers Rules. Annual Increment. Incentive for adopting small family norms.
PROMOTION
In the company the Promotional Policy has twin objectives because the career planning is also included. Ensure high level of expertise and professionalism. To create certain degree of mobility and job rotation. The employees below the rank of officers i.e. unionized cadre of employees are eligible for the promotion after satisfactory completion of seven and five years of service [Time Bound Advancement Promotion]. The promotion is based on their grading obtained in the performance done by their Supervisors. The promotional policies for the officers divided into two categories. They are Career Development Plan (CDP) and Vacancy Based Selection (VBS).
CAREER DEVELOPMENT PLAN: Officers from Grade I to IV come under this plan. The ingredients of this plan are given below: Eligibility: Is a minimum of five years of service. Selection: Is done through staff selection committee. Mode of selection: Is done through interview conducted by Staff Selection Committee once in a quarter. Final selection: Of the maximum of 100 marks earmarked for selection 70 marks is allotted to the performance in the present
39
grade and the remaining 30 marks are allotted to the performance in the VIVA during the interview by the Staff Selection Committee. Out of the weight age, the individual has to score a minimum of 35 from the 70 performance marks and 15 from the VIVA marks to get the final selection. VACANCY BASED SELECTION: Officers from Grade-V and above come under this plan. The promotion is effected only when there is a vacancy. The eligibility criteria is a minimum of five years in the present grade and due weight age is given to experience and qualification.
PRODUCTION DEPARTMENT:
KSDL as 3 main production plants: Fatty Acid Plant Soap Plant Detergent Plant Fatty Acid Plant: The basic raw materials, Oil & fats undergo the splitting & refining process including hydrogenation at the fatty acid plant. It is also obtained & used for soap making. The plant has a capacity to process 10,000mt of oils 1 fat. Soap Plant: The soap plant is one of the largest production plants in the country wit an installed capacity of 26,000 tones per annum. KSDLs soap plant has its uniqueness been in a position to process as many as ten different varieties of soap simultaneously. The sophisticated plant from Italy has a wholly integrated straight line facility that links up process sequence for higher productivity.
40

It is a stream line flow through right from raw material preparation to end or the line collation with the built in facility for continuous fat bleaching & saponification. The finishing touches are given or high tech universal wrapping machine. This high speed auto wrapper has the capability to handle soaps of virtually & size or shape. Detergent Plant: It has installed capacity of 10,000 tones per annum. To produce spray dried, powder & a syntax plant for detergent cakes & bars. It produces industrial detergent which is used in the formulation of wettable pesticide powders for crop protection
41
ORGANISATIONAL STUDY AT KS & DL PRODUCTION DEPARTMENT

STRUCTURE OF PRODUCTION DEPARTMENT
General Manager
Senior Manager
Manager
Manager
Manager
Deputy Manager
Works Manager
Senior Engineer
Engineer
Workers
4.3 MARKETING DEPARTMENT:

The company main products are soaps & detergents which are sold in different parts of India. There are depots at various places of the country which are controlled by seven branches. The role of each branch is to ensure that sales activities coming under their control.
42

ORGANISATION CHART OF MARKETING DEPARTMENT
Chairmen Chairmen
MD
GM(MKTG)
DGM(MKTG)
AGM (Adv &Soaps)
AGM(BB), (CHE),(HYD)
PM(Det& Agb)
PM(CFGS)
M(MRIS)
M (S)
AM (Mktg)
AM (CFGS)
AM (Mktg)
AM (MRIS)
AM (S)
AM(A)
Off (CFGS)
Off (S)
Off (A)
Jr Off
Jr Off
Jr Off
Jr Off
Sr Asst
Sr Asst
Sr Asst
Sr Asst
Jr Asst
Jr Asst
Jr Asst
Jr Asst
Jr Asst
43

Branch 1. Bangalore 2. Chennai 3. Hyderabad 4. Mumbai 5. Kolkatta 6. Delhi Hubli, Raichur Madras, Salem, Madurai, Cochin Hyderabad, Vijayawade, Ananchapur Bhiwandi, Ahmedabad, Pune Cuttack, Patna, Gauhati Delhi, Jaipur, Jullundur Depots
ORG: Operational Research Group report main source of marketing research private agency which study the competitors consumer demand, market etc that generates the report.
CHANNELS OF DISTRIBUTION:
KSDL manufactures their products i.e. soaps & detergents. After this sent to various distribution points through agents. The stockiest sells to various retailers hence it reaches to the consumers. CHANNEL DISTRIBUTION: Manufacture (KSDL)
Agents
Stockiest (Wholesalers)
Retailer
Consumers
44

As the company markets their products, it ensures that there is proper description of their product & its distinct features. So that the consumer can be position to understand its components.
EXPORTS:
KSDL export their products to different parts of world they are: Australia Berlin Canada Czechoslovakia France Germany Italy Kenya Malaysia Saudi Arabia Singapore Africa Srilanka USA Japan UK Taiwan Holland
FUNCTIONS OF MARKETING DEPARTMENT: 1. Marketing Mix : it is the policy adopted by the manufactures to get success in the field of marketing 2. Product Policy: It includes both the turns of development & improvement produced and existing products. This all totally done by KSDL both marketing & R & D department. 3. Distribution Policy: The manufactured product of KSDL is supplier to the factory depots. There are various depots in various states & stored there. 4. Sales & Promotion: the drawback is poor advertising & sales promotion. 5. Packing: Uses different materials for different products, card board boxes synthetic covers. 6. Market Share: The KSDL production strategy is more expensive when compared to other product. At present co, holding market share of 18% in south India & 8% throughout India basis for premium soaps.
FINANCE, ACCOUNTS, AUDITING DEPARTMENTS

45
FINANCE: It is the life blood of every organization. It is concerned with managerial decision making. This department is concerned with proper utilization of cash. It identifies the source of finance where to borrow i.e. ICICI, IRBI, IDBI, Corporation bank etc. It has abundant of function which can be enumerated as follows: Effective funds management which is inverted in beneficial projects. Decision making regarding fixing of cash account. Obtaining trade credit. Profit Maximization. Wealth Maximization. Preparation of cash budgets. Systematic approach to working capital management. Pricing of raw materials & valuation of stores. To protect financial interest of the company.
AUDIT DEPARTMENT: KSDL audit wing is headed by interval auditor. Auditing is vital for the company as it facilitates verifying of all the books of a/c by trial balance, it also comply with requirements for central excise & income tax purposes. After the Auditors monitor everything they give report which is helpful to the company. COSTING: When a company does costing it ensures proper fixation of selling price of the product, cost control it also help in taking decision. KSDL use process costing as the production mechanism is systematic it involves addition of a lot of ingredient in the manufacturin
46
ORGANISATIONAL STUDY AT KS & DL FINANCE DEPARTMENT CHART:

Managing Director
General Manager (Finance) DGM (F) AGM (F) / A/Cs/Audit/CE I/C (1)
AM (PR&PF) A/Cs Bills Section Costing Section

Supr(A/Cs) (V)-2
CE JR.Officers JR.Officers
JR.Officers (3)
Supr(costing) (3) Vacant
SR.Asst.
SR.Asst.
SR.Asst. SR.Asst.(1) SR.Asst.(1) JR.Asst.
JR.Asst.
Chief Mangaer (V)
JR.Asst.(V)
JR.Asst.
RESEARCH DEVELOPMENT & QUALITY CONTROL

KSDL its full fledged quality control & R&D single mindedly pursue quality enhancement. Both departments are headed by highly qualified professionals, committed to developing products that keep place with customers changing needs & perceptive.
47

When doing Research they have a target which they get benefits & it enables the company to forecast the future. AIMS: Product process development. Product process improvement. Cost reduction Alternative raw materials Slow moving & non moving inventory reduction Technical advice to the management. Quality plays a very important role in KSDL majority of the products are consumer goods. So it must satisfy the consumer expectation. KSDL as 2QC division Raw material QC division Production QC division OBJECTIVES OF R&D: To improve the existing production To adopt new methods of product development To provide technical support for marketing department To make improvement in the process of production To administer & maintain technical library
DIVISION OF KSDL: 3 manufacturing units all over India 1. KS & DL Bangalore Division 2. Mysore Division 3. Shimoga Division
STORAGE DEPARTMENT:
In KSDL there are about 8 stores namely:
48

1. Packing Materials 2. Engineering Goods 3. Perfumery Stores 4. Oil & Fats Stores 5. Detergent finished goods stores 6. Fuel & Serviceable stores These stores play a great role in maintaining of required stock. It also facilitates maintenance of suitable store organization structure. It monitors the procedures of the receipt. Materials are issued on the basis of FIFO.
WELFARE DEPARTMENT:
KSDL welfare department can be classified into 3 sections namely, 1. Statutory 2. voluntary 3. Non statutory a) Statutory : KSDL welfare association is based on employees contributions, interest carved. Canteen facility First aid Provident Fund
b) Voluntary benefit : c) Mutual : Employees get 2 pairs of uniform at every year & a Pair of shoes for every year Cultural Recreations 49 workers education class conducted by the central board Inspection of fittings Dust nuisance Toxic gas nuisance

Leave facilities Employees Co-operative society which give loan on credit Employees house building society
MAINTENANCE DEPARTMENT:
Effective maintenance is the goal of the company. The areas of maintenance are: Mechanical Maintenance Electrical Maintenance Civil Maintenance
Proper maintenance results to: Reduction of overload Cost Reduction Greater Safety of equipment & workers Delivery schedule is maintained.
This department contributes also working progress of the company.
MATERIALS DEPARTMENT:
Materials are obtained at right time, right quality at right place from right source &at right cost which leads smooth flow of production. Objectives: Maintaining continuity of flow of materials Effective control of inventories Coordination Growth of the organization Maintaining ethical organization
It has been divided into 5 sections: Oil & fats section Perfumery & aromatically section 50

Packing materials section Chemical section Miscellaneous & Engineering stores section
SKILLS:
The term skills includes those characteristics, which people use to describe a company. Organization have strengths in a number of area but their key strengths are dominant skills are few. These are developed over a period of time of the result of the interaction of a number of factors performing certain tasks successfully over a period of time, the kind of people in the organization, the top management style, structure, the management systems, the external environmental influence etc. Hence when organization makes a strategic shift it becomes necessary to consciously build new skills. Employees skills in an organization will be unique, this may be due to their experience in the place of work, and the similarity may also due to influence of the similar culture. However every person according to his traits possesses his own talents and special characters. This cannot be generalized skill among them. The employees of KS&DL have different skill, which are relevant for their work. As it is common in big organizations, he also controversies between departments which can be solved by discussions and by conducting some interactive programs.
STYLE OF MANAGEMENT:
Decision-making is centralized with the head office. Authority is given to unit in-charge to take decision in day-to-day minor matters & other urgent matters. Decision-making depends on the authority & responsibility conferred on each individual & thus its distributed based on designation & position held.
51

In important matters, meetings are held to seek opinions of top management & various department manager & the decisions are taken & implemented. Decision-making is co-ordinate & done with wide consultations of top management of department managers consultation which gives best possible gains.
STRATEGY:
Strategic planning is about asking questions, more than attempting to answer them. Strategy formulation entails a search for a different frame of reference. It is the quest for a new business paradigm. There are two types of paradigms that apply to management, namely the business and the organizational or managerial paradigms. The business paradigms define a companys position in the market place with respect to customers, technology and products. Strategy is a choice of direction and action; the company adopts to achieve its objectives in a competitive situation. Any statements on overall of functional strategy that the company may wish to share are: Improvement in the existing products. Their future plans include launching of new products. The cost control exercise is in consolidation. Introduction of cost effective substitutes without compromising on quality Development of new perfumes, soaps detergents, Agarbathies, creams and shampoos.
MANAGEMENT INFORMATION SYSTEMS DEPARTMETN:

A. Accounting System: Financial statements are prepared under the historical cost convention on an accrual basis and comply with the accounting standards refer to sec 211 (3c) of the companies Act 1956. B. Costing System:
52

Process costing. C. Inventory Control System ABC analysis for stock control. FIFO method for issuing materials. Computerized accounting system for stores. D. Remuneration System: 1. Time rate system is followed to employees. 2. Government fixes the remuneration to executives E. Performance Appraisal System: Confidential report is prepared by heads of various departments for systematic judgment of the subordinate by authority to assess the standard of work & overall performance.
INVENTORY CONTROL SYSTEM:

STORES DEPARTMENT: KS&DL has well- managed stores department for each of the three divisions viz, soaps, detergent & fatty acid division in the factory, there are separate miscellaneous stores department for raw material, finished goods and tools. Objectives; Assuring the availability of raw material at right quantity. Maintenance of economical and uninterrupted flow of production activities and finally to ensure minimum blockage. Achieving maximum efficiency in production and sales with least investment in inventory. Types of stores: Perfumery stores Chemical stores. Packing material stores. Oil & Fats Stores. Finished goods stores. 53
ORGANISATIONAL STUDY AT KS & DL STAFF:

As any employer, KS&DL follow ethical employment standards wherever it operates with a goal in mind company guarantees. 1. To fulfill its entire legal obligation in terms of employment payments and benefits practices. 2. Adequate and timely training for every one for the job for which they are employed. 3. Career advancement related to performance and experience.
Benefits provided by KSDL:

Monetary benefits are basic wage allowances, employees contribution to PF. Employee state insurance, bonus, pension gratuity etc. Fringe benefits like housing, food canteen, education to children, medical facility, holiday pay, recreation etc.
Allowances:
The gross salary includes basic pay and 1. DA 2. City compensatory allowance 5% of basic pay. 3. HRA 20% of B.P who resides in rented house. 4. Conveyance allowance, Rs.740 per month for workers. Family Travel Allowance: Rs.1500 per year for an employee. 5. Shift allowance: 3 shifts, 1st Shift: 6-2p.m 2nd Shift 2-10p.m Rs.25 paid 3rd Shift 10pm-6am Rs.35paid. 6. Leave facilities: 18 days privilege leave, 7 days casual. 15 days sick leaves 7. Canteen facility 8. Bonus: It is declared within 8 months after closing the accounts the management has declared 20% bonus for the current year 9. Increments
54

10.P.F
Medical benefit: Workmen card: Domiciliary Rs, 500/-per month is given along with wages & Rs.150000/-per annum for hospitalization. Office card: the co, gives actual cost over & above the entitlement for major diseases.
SHARED VALUES:
Values: Values refer to the institutional standards of behavior that strengthen commitment to the vision, and guide strategy formulation and purposive action. The core values are shaped around the belief that enterprises exist to serve society. In terms of this belief, profit is a means rather than an end in itself a compensation to owners of capital linked to the effectiveness of contribution to society and the essential ingredient to sustain such enlarged societal contribution. Thus company has embraced an extended role of trusteeship that reaches beyond the assets reflected in the balance sheet to encompass societal assets. An unwavering commitment to integrity, ethical conduct, meritocracy, teamwork and abiding concern for stakeholders are at the heart of your companys value system. Customer satisfaction Committed to total quality. Cost and time-consciousness. Innovation and creativity. Trust and team spirit. Respect for individuals. Integrity health and ethics.
55
PART-C
Swot Analysis
56
SWOT ANALYSIS
STRENGTHS The factory is located in the heart of the city & has all infrastructure facilities. They require quick movement of raw materials & finished products. Due to its proximity, habitation movement of men and material are easy. The company has modern manufacturing facility with
maximum capacity, brand loyalty of consumers and has 90% of sandal soap market, foreign technology to suit indigenous condition due to government participation, little financial crisis with backup from government. A very good dealership network, which ensures that the products reach every loop and corner. A very little competition for its major products sandal soap. An ISO 9002 certified company has its own brand image. An ISO 14001 company, which commits to reserve the natural environment in the production of its quality products to the satisfaction of its customers. Diversified product range keeps the company stable. Abundant availability of raw materials.
57

Two sandalwood oil factories in Shimoga and Mysore, which produce 75% of worlds sandalwood oil.
WEAKNESS: Slow growth rate 6.2 growths over 40 years against the product of 80%. Power intensive: dependent on power may miscarriage here results in under utilization of capacity. High oriented cause due to excessive Labour force. Low turn over resulting in low profits. Defective publicity. Needs updating with times in terms of plant and machinery. R&D is not effective in as much as it has not made any brake through in new products. The large proportion of the target area is upper middle class and upper class people, it has very few offer to lower middle class. It has only 8% of the total detergent market share. Due to lack of direct sales, debts with many dealers turning bad. Unskilled labor coupled with excess labor hampers profitability. Product lies under utilized. marketing strategy lacks effective advertising and
OPPORTUNITIES: 1. The toilet soap and the detergents market is an over expanding industry and a major company likes KS& DL with its manufacturing expertise can call the shots if it reaches peak manufacturing capacity. 2. Good export market should tap foreign market vigorously. 3. At present it has Good raw material sources to enhance production.
58

THREATS: 1. Competition from other global leaders like HLL. 2. Government interference may reduce growth potential. 3. As the company depends on forests for its main raw materials makes the company to find chemical alternative to sandalwood. 4. To protect the financial interest of the company.
PART-D ANNUAL REPORT
59
ANNUAL REPORT OF KSDL Operational performance Production :Total Rs. 17,460.20 lakhs as against Rs. 14256.86 lakhs Actual production in metric tons 2008 09 7199.810 2814.466 1.068 245.095 162.198 2007 08 6452.917 1871.497 1.152 208.661 158.536
SI No 01 02 03 04 05
Class of Goods Soaps Detergents Sandal wood oil Agarbathies Talcum Powder
Sales :Gross = Rs. 19,006.53 lakhs as against Rs. 16,247.74 Net = Rs. 16,939.19 lakhs as against Rs. 14,552.85 Sales (Rs. In lakhs) SI No Class of Goods 2008 2009 2007 2008
01 02 03
Soaps Detergents Sandal wood oil
Quantity Value Quantity Value in M in M tons tons 7555 14,808.29 7097 13,006.38 2813 --914.96 28.37 200 7 --577.54 28.63
60

04 05 06 Agarbathies Talcum Powder Other TOTAL 395 170 --588.88 262.61 336.08 16,939.1 9 206 181 578.65 323.77 37.88 --- 14,552.8 5
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2009
PARTICULARS Rs. INCOME Sales Less: Excise duty Net sales Other income 1,69,39,19,36 8 16,02,15,837 1,53,37,03,53 1 6,06,23,797 1,59,43,27,32 8 7,03,74,213 1,66,47,01,54 1 EXPENDITURE Materials Consumed (include trading items) Other Expenditure Depreciation Operating Profit /Loss Less: Interest and Finance Charges PROFIT BEFORE TAX Less: Provision for Taxation (i) Current Tax (ii) Fringe Benefit Tax 801928343 73,44,42,910 39,69,038 1,54,03,40,29 1 12,43,61,250 72,76,261 11,70,84,989 AMOUNT Rs.
Increase/(-) Decrease in stock
1,85,00,000 21,28,828 61

Deferred Tax Asset PROFIT AFTER TAX Prior Period Income /(-) Expenditure Tax of earlier year ---13,08,93,0 88 13,68,26,041 2,03,58,318 11,68,14,479 1,40,78,6 09
Profit/Loss brought forward previous year
The Company earned EBIT (operating profit) of Rs. 4,80,05,540. The profit for the year before tax (EBT) has been Rs.4,33,57,146. The Net Profit (after providing tax) carried over to Balance Sheet was Rs. 1,50,70,294.
BALANCE SHEET AS ON 31ST MARCH 2009

PARICULARS 31/03/2009 Rs. SOURCES OF FUND: 1. Share holders Fund: (a) Share Capital (b) Reserves & Surplus 2. Loan Fund: (a) Secured Loan (b) Unsecured Loans TOTAL APPLICATIO N OF FUNDS: 1. Fixed Assets
31/03/2008 Rs. Rs. Rs.
31,82,21,000 26,77,19,129
31,82,21,000 ----
10,72,04,60 8 8,35,06,504
1,03,65,536 19,07,11,112 77,84,20,599 8,99,95,436 10,03,60,972 55,54,08,01 3
62

(a) Gross Block Less: Depreciation (b) Net Block 2. Investment 3.Deferred Tax Assets 4. Current assets Loans & Advances (a) Inventories (b) Sundry Debtors (c) Cash & Bank Balance (d) Loan & Advance (e) Investment In gratuity trust Less: Current Liabilities & Provisions (i) Liabilities (ii) Provision Net current assets 5. Miscellaneo us Expenditure 6. Profit & loss Account Total 30,96,23,62 0 23,98,47,86 0 6,97,75,760 100 5,25,04,866 29,61,06,15 4 23,70,50,82 9 5,90,55,325 100 3,21,46,548
40,74,52,48 7 16,35,29,61 8 25,51,32,91 0 21,52,57,57 2 5,00,00,000
29,60,12,82 2 14,63,46,67 0 33,43,85,42 3 10,49,44,64 0 3,00,00,000
1,09,13,72,58 7
91,16,89,55 5
24,66,50,79 4 20,49,56,56 0
45,16,07,354 63,97,65,233 1,63,74,640
30,87,52,36 5 16,67,70,64 0
47,55,23,00 5 43,61,66,550 2,80,39,490
-----------77,84,20,599 55,54,08,01 3
63
64
PART-E
Learning Experience
65
ORGANISATIONAL STUDY AT KS & DL LEARNING EXPERIENCE

Few things which are advantageous theoretically will not be advantageous in practical such as decisions, bottom up management. Implant certain ideas, changes in certain ideas, changes in certain policies, methods, etc. It served an opportunity to integrate practical experience with the theoretical concepts and to understand functional aspects of the various departments in the organization. The theory was the base and this inplant training help I relate to reality. It provided insight knowledge particularly to view the large scale production purposes. EXPOSURE TO THE COMPANY Related to HRM The essence of the company is to appraise the performances of the employees and their achievements, disciplinary actions are taken against the employees unity, malpractices, misconduct as well as the poor performance, etc. The company motivates employees through promotion, transfers and few fringe benefits etc. The company recruits employees through employment exchange. The training effectively and efficiently envisaged the main purpose of training the employees. Six months training is given for fresh candidates for all public sector organizations through KSBDE (Karnataka State Bureau of Public Enterprise). The Government through the IAS cadre purely represents the Board of Directors, Chairman and other superiors. It helped to know major strengths like same recognition, proprietary technology, skilled of employees. It made easier to know working condition of the employees at different levels under different shift timing.
heavy equipment and machinery used for production
66
Related to Financial Management Training gained the knowledge in maintaining the records for regular and easy accounting, analyzing and controlling and also evaluates the inventory. Related to marketing It generated sense of knowledge to understand customer behavior with various attributes at different situation buying process with the result of customer satisfaction, brand loyalty. Related to Production Training served me to understand that production department is the nerve center of all business activities. The production method followed is continuous. It also made me to visualize the safety facilities provided during the production function. Thus the training gave a unique golden opportunity to understand practically about the management operation better in KARNATAKA SOAPS AND DETERGENT LIMITED.
67
CONTENTS
PART-A 1. 2. 3. Industry Profile Company Profile Product Profile PART-B 4. McKinseys 7s Frame Work PART-C 5. Swot Analysis PART-D 6. Latest Annual Report PART-E 7. Learning Experience 64-66 59-63 56-58 29-55 1-4 5-18 19-28
68
General Manager (Finance)
DGM (F) I/c
AGM (F)/A/cs/Audit/CE i/c Supr(A/cs)
AM (PR&PF)
PA to GM (F) Junior Officers
Bills Costing
Junior Officers
S R Assistant
S R Assistant
S R Assistant 69 J R Assistant
J R Assistant
J R Assistant

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ORGANISATIONAL STUDY AT KS & DL

School of Business Studies - MBS course, Bangalore-09

ORGANISATIONAL STUDY AT KS & DL INDUSTRY PROFILE:

School of Business Studies - MBS course, Bangalore-09

ORGANISATIONAL STUDY AT KS & DL

HISTORY OF THE SOAP:

ORGANISATIONAL STUDY AT KS & DL

School of Business Studies - MBS course, Bangalore-09

ORGANISATIONAL STUDY AT KS & DL

School of Business Studies - MBS course, Bangalore-09

ORGANISATIONAL STUDY AT KS & DL

ORGANISATIONAL STUDY AT KS & DL

ORGANISATIONAL STUDY AT KS & DL

School of Business Studies - MBS course, Bangalore-09

ORGANISATIONAL STUDY AT KS & DL

ORGANISATIONAL STUDY AT KS & DL

OBJECTIVES OF KS & DL: To serve the national economy

ORGANISATIONAL STUDY AT KS & DL

ORGANISATIONAL STUDY AT KS & DL

School of Business Studies - MBS course, Bangalore-09

ORGANISATIONAL STUDY AT KS & DL

ORGANISATIONAL STUDY AT KS & DL

ORGANISATIONAL STUDY AT KS & DL

ORGANISATIONAL STUDY AT KS & DL

management system adopted in the company through this motive as

School of Business Studies - MBS course, Bangalore-09

ORGANISATIONAL STUDY AT KS & DL

GIFT RANGE SBT SJR 06 IN 01 GOLD SIXER

School of Business Studies - MBS course, Bangalore-09

ORGANISATIONAL STUDY AT KS & DL

UNITS IN GRAMS 20, 50, 100, 300 100, 200, 400

NAME OF THE PRODUCT

School of Business Studies - MBS course, Bangalore-09

b. Mysore Sandal Special Soap

c. Mysore Sandal Baby Soap

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

School of Business Studies - MBS course, Bangalore-09

ORGANISATIONAL STUDY AT KS & DL

f. Mysore Rose Soap

g. Six-In-One Gift Pack- 6Tabs

h. Mysore Sandal Gold sixer 6 Tabs

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

j. Mysore Sandal Classic Soap

School of Business Studies - MBS course, Bangalore-09

ORGANISATIONAL STUDY AT KS & DL

ORGANISATIONAL STUDY AT KS & DL

Godrej Procter & gamble KSDL Others

ORGANISATIONAL STUDY AT KS & DL

WORK FLOW MODEL:

ORGANISATIONAL STUDY AT KS & DL

FUTURE GROWTH AND PROSPECTUS:

School of Business Studies - MBS course, Bangalore-09

ORGANISATIONAL STUDY AT KS & DL STRUCTURE OF ORGANISATION: A. BASIS OF DEPARTMENTATION

School of Business Studies - MBS course, Bangalore-09

ORGANISATIONAL STUDY AT KS & DL

School of Business Studies - MBS course, Bangalore-09

ORGANISATIONAL STUDY AT KS & DL

Process know how

Capacity of the Unit

At Bangalore Soap Plant Detergent Plant Fatty Acid Plant

At Mysore Sandal wood Oil Agarbathies

At Shimoga Duty Paid Godown

School of Business Studies - MBS course, Bangalore-09