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EXECUTIVE SUMMARY
In the year 1918 the company came into existence under the name Government
Soap Factory. Sri.S.G.Shastry a Science student went to UK for higher studies in Oil
Technology. After returning to India, he conducted several experiments. He evolved with
a soap perfume blend using sandalwood oil as the main base to manufacture the toilet
soap & thus the famous ‘Mysore Sandal Soap’ that took birth in the year 1918.
The factory started functioning in its new premises from 1st July 1957. From this
year onwards till date the factory has never looked back and it has achieved growth and
development in production, sales and profits.
The initially named Government Soap Factory was renamed as Karnataka Soaps
and Detergents Ltd in 1st October 1980. Its trademark is “SHARABHA”, The Company
is a leading sandalwood soap manufacturer in the country, and they have demand for their
products in both domestic as well as international market.
INTRODUCTION:
Fabric Wash Industry in India is characterized by (like any other non-durable product
category in India) low per capita consumption and substantial potential in rural markets
(in terms of category penetration and per capita consumption). Per capita consumption of
fabric wash products in India is just 3.1 Kg, which is very low compared to developed
and some developing countries. Also, this consumption figure has to be viewed against
the fact that India's Active Matter standards are one of the lowest in the world.
The Fabric Wash Industry is divided into Laundry Soaps, Synthetic Detergent Cakes &
Powder. The Toilet Soaps Industry is segmented into economy, popular and premium
segments. The market is witnessing fierce competition from MNCs and requires
substantial efforts for market penetration and brand development, reflected by the fact
that only 5% of total production comes from the small scale sector.
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 several threats from dynamic and enterprising new entrance especially during
1991-92.
Indian Soap Industry has seen several ups and downs in the last 30 to 40 years in the year
1964, during the China war. India faced severe shortage of fats due to foreign exchange
crisis again in the year 1975 due to severe crunch in India northwest soap, company
established first soap industry in 1887 at merut.
Soap manufacturing has classification as organized and unorganized sector. KSDL carries
under organized sector.
Primary Objective:
To check the practicality of theory what we study and the actual what exactly
happens in the company.
Secondary Objective:
• To study how the theoretical knowledge is made use of in a real life situation in
KS & DL.
• To study the organization.
• The level of satisfaction of employees and staff.
• To study the role of all the various departments in achieving the organizational
goals and objectives.
• To study of present market scenario 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 lakh tons & is met through imports. In recent times, caustic soda and soap ashes
in the cheaper .Varieties of soaps are quite high.
MARKET SCENARIO:
India is the ideal market foe cleaning products. The country’s precipitate
consumption of detergent powders and bars stands at 1.6 kg and soap at 543 GM.
Hindustan Liver, which towers over the cleaning business, sells in all over the cleaning
business but the tiniest of Indian settlements.
The 4 lakh metric tones per annum soap market in India in crawling along at 4%.
The hope lies in raising Rupee worth, the potential for which has high because the Indian
soap market is pseudo in nature and it is amazingly. Complex being segmented not only
on the basis of prices benefits. But even a range of emotions with in that is outlining
framework.
HISTORICAL BACKROUND:
For centuries, India is the land of spices, ivory, precious gems magical
charms and “Land of sandal wood”. The world’s richest sandal wood resources are from
isolated stretch of land in south India.
Karnataka is the original home of perfumed sandal wood. Its oil is mainly
used for manufacturing of soap. Thus it is regarded as a fragrant Ambassador of India and
the sandal wood is regarded as “Liquid Gold”. Karnataka state produces a major
percentage of total production of sandal wood oil in the world. It was this sandal wood oil
which became a reason to setup factory in Karnataka.
The event that bore fruits over seven decades in return planted with seeds of new
enterprises. The foundation grew stronger and KS&DL branched out in new direction.
Today the company has independent units to manufacture sandal wood oils, toilet
soaps, washing powder, detergent and industrial products.
Right from the first log of sandal that rolled into boiler room in 1916. The
company has been single mind in its pursuit of excellence the quality reflected in all
spheres of KS&DL activates.
OBJECTIVE OF KS&DL:
MISSION:
VISION STATEMENT:-
SLOGAN OF KS&DL:
The sharabha is a mythological creation from the “puranas” which has a body of a
lion and head of elephant, which embodies the combined virtues of wisdom and strength.
It is adopted as an official emblem of KS& DL to symbolize the philosophy of the
company.
The sharabha thus symbolized a power that removes imperfections and
impurities. The maharaja of Mysore as his official emblem adopted it. And soon took its
pride of place as the symbol of the Government Soap Factory of quality that reflects a
standard of excellence of Karnataka Soaps and Detergent Limited.
ACHIEVMENTS / AWARDS:
POLICY OF KS&DL:-
• Seek purchase of goods and services from environment responsible
suppliers.
• Set targets and monitor progress through internal and external audits.
MAJOR COMPETITORS:
• Godrej.
• WIPRO.
• Jyothi Laboratories.
3. KS&DL 4%
4. Godrej soaps 4%
5. Others 5%
It is said that the popular has drastically dropped bolt in quality and value terms in
spite of the fact that the market for the popular segment is growing. Though this appears
to be very peculiar phenomenon, but that really happened in application of limited
working capital. Availability of amount for the products which have the higher
contribution. In the process the company is suffered heavily in terms of its market
presence particular for popular soaps. The company has adopted some of trade push
method for growth during the last three years and judiciously applied its funds fixed
advertising, as there was a severe cash crunch. The above strategy proved rude from the
company because trade push methods gives certain guarantee has consumed off take
thorough the working capital requirement.
The company is heavily dependent on southern market founded by
Bombay and Calcutta branches. The product availability in retail outlets Particularly far
Mysore sandal soap is almost comparable to other similar products in the premium
segment in south, where as in other branches in penetration of one product is relatively
poor, which depends on the company’s distribution structure stockiest and field personnel
strength.
With increased trust on distribution, the company does not for see any problems
to achieve the projected sales through in 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 consumes
at a reasonable price.
Being located in the center of southern part of India the Government soap factory
claims preferential treatment for expansion program natural availability of sandal wood
oil extra oil etc.
ISO-14001:
The company is being in the facts of moving goods, company being located in the
heart of the Bangalore city. The top management of the company took the 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.
The clean and green objectives ISO-14001, the constitutes core committee of
officers of 6 months to study the impact of various processes during manufacturing
covering the Bangalore complex for soap detergent in this direction. Company gave
program of the awareness of ISO-14001.
As per the time schedule can be able to register by the end of February to meet
the entire objectives and target by completing all the stages recommended for
certification. On March 2000 ISO-14001 with tandem complied with ISO 9002 will
facilitate to improve the corporate brands in the global market it will help the company to
improve the profits. Year after year long-term basis. The environment management
system adopted in the company through this motive as follows:-
• Conservation of energy.
• Conservation of surrounding.
• Conservation of resources.
Equipped with latest technology and backed by full-fledged control R&D support,
KS&DL is marching confidentially a head in the new Millennium constantly developing
new products KS&DL meets the changing preferences of its customers.
BRANCHES OF KS&DL:
Mysore(Agabatties)
Bangalore
Hyderabad
Mumbai
Kolkata
New Delhi
Chennai
FUTURE PLAN:
PRODUCTION DEPARTMENT:
Quality assurance is given up to 500 kg per hours with out any problem,
depending up on the target given by the Marketing department, if any problem accused
during the production then it should be checked immediately.
Components:
In the stage fatty acid mixture is allowed to kettle along with calculated quantity
of sodium Hydroxide, and the kettle is boiled with the steam under the steam pressure of
6.5kg per cm squares. Requisite quantity of Water and Brine(salt water) or also added
from the top and Saponification reaction will take place from 3 to 4 hour’s this stage is
called FITTING stage And kettle is fitted by adding required quantity of water and salts
this is allowed for 24 hour’s to 40 hour’s when a kettle separates (NEAT) soap from
(NIGGER).
The bottom layer (NIGGER) is removed to other kettle and a super nailed
NEAT soap is processed in drying plant, The kettle NEAT soap have a moisture of 30%
and The soap is in liquid, when it is passed through drying plant the NOODLES are
produced having a moisture of 10% to 12% which is stored in SILOS.
After in the amalgamator the mixing of the perfumes, glycerin and lanolin
will be take place, after this it will be send to simplex plodder machine and to the mixture
In this process all the materials will be mixed & It is to be send to duplex plodder
machine in this minimum of -18% to -20% temperature is used.
After this it will be send to cutting machine and to packaging will take
place.
Functions:
GENERAL MANAGER
MANAGER MANAGER
(TOILET SOAPS) (DETERGENT
PLANT)
OFFICER OFFICER
WORKERS WORKERS
MATERIAL 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
MAINTENANCE DEPARTMENT:
Effective maintenance is the goal of the company. The areas of maintenance are:
• Mechanical Maintenance.
• Electrical Maintenance.
• Civil Maintenance.
STORAGE DEPARTMENT:
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.
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 adequate, but not excessive storage of materials at all time.
• 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.
MARKETING DEPARTMENT:
Around 450 people are represented from the company across the country and 12
employees are working within the organization. These representatives are responsible for
feedbacks from customer and also in increasing sales of the organization company
believes that these representatives are doing a great job.
The sales market is broadly divided into 4 segments geographically, i.e., south,
north, western, eastern zones.
South region has the major share comprising of mainly Karnataka, Tamil
Nadu, Kerala and Andhra Pradesh
Western region comes 2nd with Maharastra, Gujarat, Madhya Pradesh
Eastern region comes next with states like, Orissa, Bihar
North region comes last with states like Delhi, Punjab Rajasthan,
Himachal Pradesh, Jammu and Kashmir, and Haryana.
Demand for a product is calculated on the basis of previous year demand and
current growth of soap and detergent industry and also the feedback given by sales
representatives of the company
Branch Depots
1. Bangalore Hubli, Raichur.
2. Chennai Madras, Salem, Madurai, Cochin.
3. Hydrabad Hyderabad, Vijayawade, Ananchapur.
4. Mumbai Bhiwandi, Ahmedabad, Pune.
5. Kolkatta Cuttack, Patna, Gauhati.
6. Delhi Delhi, Jaipur, Jullundur.
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 consume
CHANNEL OF DISTRIBUTION:
Manufacture (KSDL)
Branches
Sub stockiest
Wholesalers
Semi Wholesalers
Retailer
AL AMEEN INSTITUTE OF MANAGEMENT STUDIES 39
Organization Study at K.S. & D.L.
Consumers
EXPORTS:
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
A B C D
Sl Assessment Rating
No
1 Job knowledge
2 Performance
3 Housekeeping & safety awareness
4 Attendance
5 Conduct & discipline
6 Co-operation
7 Dependability & integrity
8 Health & present ability
9 Leadership
ORGANISATION STRUCTURE OF
HRD DEPARTMENT
MANAGING DIRECTOR
DY.GEN.MGR [HRD]
MGR(HRD)
CANTEEN
FIRST AID TIME OFFICE
OFFICER
[HR
LWO ASST.MGR
VMO
JR. OFFICER
JR.OFFICER
SR.ASST. JR.OFFICERS SENIOR ASSTS
SR.ASSTS
SR.ASSTS
HELPER ATTENDER
ATTENDER Cooks
Helpers
WELFARE DEPARTMENT
b) Voluntary benefit:
• Workers education class conducted by the central board.
• Inspection of fittings.
• Dust nuisance.
• Toxic gas nuisance.
C) Mutual:
• Employees get 3 pair of uniform at every 2 years & a Pair of shoes for
every year.
• Cultural Recreations.
• Leave facilities.
• Employees’ Co-operative society which give loan on credit.
• Employees house building society.
Allowances:
The gross salary includes basic pay and
1. Dearness allowances (DA).
2. City compensatory allowance 5% of basic pay.
3. HRA 20% of B.P who resides in rented house.
4. Conveyance allowance, Rs.680 per month for workers & Rs.680 for executives.
Family Travel Allowance: Rs. 1500 per year for an employee.
5. Shift allowance: 3 shifts,
1st Shift: 6-2p.m
2nd Shift 2-10p.m Rs.25 paid
3rd Shift 10pm-6am Rs.35paid.
6. Leave facilities: 18 days privilege leave, 7 days casual. 15 days sick leaves.
7. Canteen facility
8. Bonus: It is declared within 8 months after closing the accounts the management has
Declared 20% bonus for the current year.
9. Increments.
10. P.F.
Medical benefit:
Domiciliary Rs, 400/-per month is given along with wages. Rs.150000/-per annum per
Employee for hospitalization.
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
Objectives:
New Product Development
Existing Product Development
Cost Reduction (More profitability)
1. ACCOUTING SYSTEM:
2. COSTING SYSTEM:
FINANCE DEPARTMENT:
Managing Director
General Manager
S R Assistant S R Assistant
S R Assistant
J R Assistant J R Assistant
J R Assistant
Income
Sales 1455284544 1195803294
-Excise duty 168822536 151428824
Net sales 1286462008 1044374470
Other income 1307447313 1063378770
1307447313 1063378770
Increase& decrees in stock (26466726) 47309343
1280980589 1110688113
Expenditure
Material consumed 541433115 507094583
(including trading term)
Other expenditure 613525868 551982974
Deprecation 3577430 3605016
Profit and loss before tax 117935440 43357146
Prevision for taxation
Current tax 18000000 5200000
Fringe befits tax 7098690 2301452
Dividend tax 4596946 -----
Profit and loss after tax 88239809 35855694
Prior period income
(+)(-) expense 14687533 6640866
Deferred tax assets 32146548 -----------
Proposed dividend (27048785) -------------
Tax of entire year 13730643 22096763
121755748 20396797
Profit and loss B/F from
previous year 15070293 (5326504)
Profit and loss transfer to
Balance sheet 136826041 15070293
Sources of Funds
converted into
Equity barrowings 1003.61 1466.25
(including loans from Govt
of Karnataka
Recover and surplus 1368.26 150.70
5554.08 4799.16
Application of Funds
SELECTED PROBLEM
AREA (HR)
TRANING AND
DEVELOPMENT
Many of the public undertaking companies do face the training and development
problem as they don’t adopt new training and development methods with requisites of
present scenario which unable them to bench mark themselves against private modernized
companies. Thus the need for organized training programs arises
STUDY METHODOLOGY:
This is a systematic way to solve the research problem and it is an important
component for the study without which researcher may not be able to obtain the facts and
figures from the employee.
The methodology adopted for the study is as follows:-
Sources of Data:
Primary Data:
The primary data is collected with the help of questionnaires, which are chosen
because of its simplicity and reliability. Researchers can expect straight answers, which
are directly related to the question. The asked interpretation of data under this can be done
correctly. Because of this questionnaire it is much helpful, in factors such as obtaining
choices and helping respondents to understand the significance and answer to their
reliability. In this method rate and reliability is higher. In addition to this the data was
collected through observation method, personal interviews and question schedule in the
place where questionnaire was not workable.
Secondary Data:
Secondary data is collected through the documents provided by the all the
departments such as policy decisions, reports regarding suggestions, schemes, etc. Data is
also gathered from the books of various authors, magazines, journals, annual reports,
broachers, company manual, etc.
However in this study most of the information gathered was from the secondary
data that through books, journals, magazines, annual reports, etc. Hence secondary data
makes the main source for the data collected.
Human resources is a term with which many organizations describe the combination of
traditionally administrative personnel functions with performance, Employee Relations
and resource planning. The field draws upon concepts developed in
Industrial/Organizational Psychology.
Human resources refer to the individuals within the firm, and to the portion of the
firm's organization that deals with hiring, firing, training, and other personnel issues.
The objective of Human Resources is to maximize the return on investment from
the organization's human capital and minimize financial risk. It is the responsibility of
human resource managers to conduct these activities in an effective, legal, fair, and
consistent manner.
It is a relatively new term, that emerged during the 1930s. Many people used to
refer it before by its traditional titles, such as Personnel Administration or Personnel
Management. But now, the trend is changing. It is now termed as Human Resource
Management (HRM). Human Resource Management is a management function that helps
an organization select, recruit, train and develops.
Human Resource Management is defined as the people who staff and manage
organization. It comprises of the functions and principles that are applied to retaining,
training, developing, and compensating the employees in organization. It is also
applicable to non-business organizations, such as education, healthcare etc.
Scope of HRM without a doubt is vast. All the activities of employee, from the
time of his entry into an organization until he leaves, come under the horizon of HRM.
The divisions included in HRM are Recruitment, Payroll, Performance Management,
Training and Development, Retention, Industrial Relation, etc. Out of all these divisions,
one such important division is training and development.
Training:
It is a learning process that involves the acquisition of knowledge, sharpening of
skills, concepts, rules, or changing of attitudes and behaviors to enhance the performance
of employees.
DEVELOPMENT DEFINED:
It helps the individual handle future responsibilities, with less emphasis on present job
duties
The principal objective of training and development division is to make sure the
availability of a skilled and willing workforce to an organization. In addition to that, there
are four other objectives: Individual, Organizational, Functional, and Societal.
Individual Objectives – help employees in achieving their personal goals, which in turn,
enhances the individual contribution to an organization.
Research has shown specific benefits that a business receives from training and
developing its workers, including:
• Increased productivity.
• Reduced employee turnover.
1. Training should make the personnel skilled enough to do the job on hand
efficiently leading to targeted productivity levels.
A business should have a clearly defined strategy and set of objectives that direct
and drive all the decisions made especially for training decisions. Firms that plan their
training process are more successful than those that do not.
Reasons for not adopting training programes in many organizations:
Time - Small organizations find that time demands do not allow them to train employees.
Getting started - Most small organizations have not practiced training employees. The
training process is unfamiliar.
Broad expertise - Organizations tend to have broad expertise rather than the specialized
skills needed for training and development activities.
Skepticism as to the value of the training - Some small organizations believe the future
cannot be predicted or controlled and their efforts, therefore, are best centered on current
activities i.e., making money today.
1. Organizational Objectives:
First of all want to define the organizational ojectives in the process of training.
3. Training Objectives:
4.Selection of Trainees :
Training Goals:
The goals of the training program should relate directly to the needs
determined by the assessment process .
Setting goals helps to evaluate the training program and also to motivate
employees.
Allowing employees to participate in setting goals increases the
probability of success.
Training methods:
TrainingMethods
Training Methods
Onthe
On thejob
jobMethods
Methods Offthe
Off thejob
jobMethods
Methods
On-the-job technique: is delivered to employees while they perform their regular jobs.
In this way, they do not lose time while they are learning. On-the-job techniques includes:
Off-the-job techniques: Under this method of training,the trainee is separated from the
job situation and his attention is focussed upon learning the material related to his future
job performance.It includes:
1. Lectures present training material verbally and are used when the goal is to
present a great deal of material to many people. It is more cost effective to
lecture to a group than to train people individually
2. Role playing and simulation are training techniques that attempt to bring
realistic decision making situations to the trainee. Likely problems and
alternative solutions are presented for discussion.
3. Audiovisual methods such as television, videotapes and films are the most
effective means of providing real world conditions and situations in a short
time.
6.Training Administration:
Having planned the training program properly, you must now administer the
training to the selected employees. It is important to follow through to make sure the
goals are being met. Questions to consider before training begins include:
Location.
Facilities.
Accessibility.
Comfort.
Equipment.
Timing.
7.Evaluation of training:
Employees should be evaluated by comparing their newly acquired skills with the skills
defined by the goals of the training program. Any discrepancies should be noted and
adjustments made to the training program to enable it to meet specified goals. Timely
evaluation will prevent the training from straying from its goals.
Feedback: It helps in giving feedback to the candidates by defining the objectives and
linking it to learning outcomes.
Control:
It helps
in
controlling the training program because if the training is not effective, then it can be
dealt with accordingly.
Power games: At times, the top management (higher authoritative employee) uses the
evaluative data to manipulate it for their own benefits.
Intervention: It helps in determining that whether the actual outcomes are aligned with
the expected outcomes.
Before Training: The learner's skills and knowledge are assessed before the training
program. During the start of training, candidates generally perceive it as a waste of
resources because at most of the times candidates are unaware of the objectives and
learning outcomes of the program. Once aware, they are asked to give their opinions
on the methods used and whether those methods confirm to the candidates preferences
and learning style.
During Training: It is the phase at which instruction is started. This phase usually
consist of short tests at regular intervals
After Training: It is the phase when learner’s skills and knowledge are assessed again
to measure the effectiveness of the training. This phase is designed to determine whether
training has had the desired effect at individual department and organizational levels.
There are various evaluation techniques for this phase.
Techniques of Evaluation:
Advantages of Training:
Increased productivity
Heightened Morale
Reduced Supervision
Increased Organizational Stability
STRENGTHS:
Only soap in India that contains pure sandal and almond oil.
Certified by ISO
It has very good dealership network, which ensures that the products reach
every customer.
WEAKNESSES:
OPPORUNITIES:
THREATS:
Consumer awareness of its products is very less except for Mysore Sandal
soap.
Its products are not available easily in district places of states other than
Karnataka.
Recruitment in the company has been stopped since 1988 due to some
circumstances and recruitments are taking place only in some department.
KS & DL has a wide variety of products but people are unaware of many
products like incense sticks, detergents, baby soaps, etc., as its marketing
is weak. So it should spend both money and man power on advertising.
The overall study of the organization reveals that the company has grown
tremendously since its incorporation from 1918, now it has independent units for
manufacturing sandalwood oils, toilet soaps, detergents, cosmetics, incense sticks and
industrial products. The initially named Government Soap Factory was renamed as
Karnataka Soaps and Detergents Ltd in 1st October 1980.
The company has an effective human resources department wherein the employees
are given excellent packages, incentives and extensive care is taken by providing facilities
such as canteen, medical facilities, motivation classes and extracurricular activities.
Website; www.mysoresandal.com
www.msilonline.com